Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — Q1 2024 Earnings Presentation
38 slides from Desa Deri Sanayi Ve Ticaret A.s's earnings presentation, 2024
Slide 1: 2024Q1 Investor Presentation
2024Q1 Investor Presentation
Slide 2: Contents
01 Introduction 02 Business Overview 03 Sustainability 04 Financials CONTENTS 2
Slide 3: Introduction
DESA at a Glance Investment Summary Shareholding Structure 01 INTRODUCTION 3
Slide 4: DESA at a Glance
DESA at a Glance Established in Stores Total Area production facility of 15.500 m² 1972 14.812 m² SefaköyProduction Facilities Factory & Head Office IPO Free Float Total Number 2004 35% of Stores production facility of 20.000 m² 112 Çorlu Tannery Facility 1.543 Employees 1 Online 95 DESA 17 JV produ
Slide 5: Investment Summary
Investment Summary Considerable amount of FX based revenues with diversified business structure New opportunities for luxury goods’ export with the newly established Italian factory 2nd Generation in Management: Family members managing in harmony Strong cash position at the end of 2024Q1: Net cash p
Slide 6: Shareholding Structure & Board of Directors
Shareholding Structure & Board of Directors Adesa 2% Board of Directors Position Melih Çelet Free Float 18% Melih Çelet Chairman 17% Burak Çelet Vice Chairman Melih Çelet Burçak Çelet Board Member 10% Bahar Deniz Egemen Independent Board Member Others 1% Mehmet Kaan Koz Independent Board Member Free
Slide 7: Business Overview
Vertically Integrated Business Model Production Facilities Investment in Italy Turquality Program NINETEENSEVENTYTWODESA 02 Cross-border E-commerce Channel: BUSINESS OVERVIEW Zalando 7
Slide 8: Vertically Integrated Business Model
The sole Turkish company in Vertically Integrated Business Model leather industry with a production facility located in Italy Raw Material Production Final Product Retail Sales Çorlu Tannery Facility to Manufacturing 112 stores with process imported leather Leather bag and apparel 14.812 m² of space
Slide 9: Production Facilities & Employees
Production Facilities & Employees 62% 38% White Collar Blue Collar Sefaköy Factory & HO Düzce Factory Tuscany Factory Çorlu Tannery 15.500 m² 10.000 m² 2.000 m² 20.000 m² Napa sheepskin, double-face Production of leather goods and Production of clothing and Production of clothing and and suede proce
Slide 10: Investment in Italy - Production Facility and R&D Center
Investment in Italy - Production Facility and R&D Center July 2022 January 2023 Investment decision Acceptance and installation of the machinery August 2022 March 2023 Desa Internazionale SRL established, and Mr.Simone Norcini joined DESA Family as Factory Manager Kick-off of the recruitments Septem
Slide 11: Italy Production Facility and R&D Center
Italy Production Facility and R&D Center 11
Slide 12: Turquality Program
Turquality Program DESA is a Member since 2006 Government support for 50% of expenses made To Create a abroad under the Turkish Brand Brand Rather than acquiring one 12
Slide 13: International Design Team
International Design Team IVANA OMAZİC (2023-2024) Respected and highly experienced Designer and Creative Director from well known luxury brands like Prada - Miu Miu - Maison Martin Margiela - Celine - Jil Sander - MCM - Stone Island - Romeo Gigli and IO 13
Slide 14: NINETEENSEVENTYTWO Collection
NINETEENSEVENTYTWO DESA, the first Turkish brand COLLECTION featured on the official calendar of Milan Fashion Week, presents its women's and men's collections, inspired by the year 1972, when it launched its first handbag collection, to fashion enthusiasts 14
Slide 15: NINETEENSEVENTYTWO Global Footsteps
NINETEENSEVENTYTWO GLOBAL FOOTSTEPS It is offered worldwide at 104 select points, with prices ranging from 900 to 3.000 EUR, featuring high-quality craftsmanship and minimalistic designs 15
Slide 16: Cross-border E-commerce Channel: Zalando
Cross-border E-commerce Channel: Zalando • Europe’s key fashion e-commerce site • Agreement signed on Aug’22 and Sales kicked-off in Jan’23 • Covering 5 countries: Germany – Belgium – Netherlands – Austria – France • Cost effective with e-commerce support from Turkish Government • The Goal is to off
Slide 17: Sustainability
Düzce SPP* Çorlu SPP Certifications 03 Other Initiatives SUSTAINABILITY (*)Solar Power Plant 17
Slide 18: Düzce SPP
Düzce SPP • Built on 7.000 m² roof of Düzce Factory • 1,023 MW Panel Capacity/ 0,800 MWe Installed Capacity • Started operating on August 2022 • Investment Cost of TRY 12 million • Expected to reach the break-even within 4-5 year range considering the current energy costs • Factory consumption aroun
Slide 19: Çorlu SPP
Çorlu SPP • On 9th of November 2022, the Board of Directors ratified establishment of an SPP in Çorlu Factory • Built on the roof of the factory covering 3.300 m² • The output is measured as 641,55 kW on February 2024 and its license is granted in April 2024 by TREDAŞ, the local distribution company
Slide 20: Certifications: Leather Working Group Gold
Certifications "Gold Rated" Leather Working Group • Accreditation: 2021 • Achieved the "Gold" level, a distinction attained by very few companies worldwide • Obtained through evaluations in 17 categories: Water and Energy Usage, Waste Management, Chemicals Used, etc. • Leather Working Group: • Respo
Slide 21: All Facilities Verified for Higg
Certifications HIGG Index Established in 2010 250+ members All Facilities Verified Developed by the A standard that assesses environmental and social for Higg sustainability throughout Sustainable Apparel the supply chain in the Coalition (SAC) clothing and footwear industry Higg FSLM Higg FEM (Faci
Slide 22: All Facilities are Ratified for Sedex
Certifications SEDEX Established in 2004 All Facilities are Ratified for Sedex 85.000 members in 180 countries DESA is a member since 2005 All DESA facilities are audited by 3rd parties 22
Slide 23: Other Sustainability Initiatives in DESA
Other Sustainability Initiatives in DESA Our upgrades to LED • We replaced the motors of our sewing machines with next-generation motors to technology in the stores prevent unnecessary energy consumption and facilities, resulted in 40% saving of energy • We prioritize prevention, reduction, reuse, a
Slide 24: Examples of Our Corporate Social Responsibility Initiatives
Examples of Our Corporate Social Responsibility Initiatives Continuous support to One Hope One Life Project women employment with «Celentano Artisans» (Bir Umut Bir Yaşam Projesi) Every Knot is a Support for a Woman (KEDV “Her İlmek Bir Kadına Destek”) 24
Slide 25: Financials
Sales Exports EBITDA Net Profit Net Working Capital 04 Income Statement B/S - Net Cash - Ratios FX Position FINANCIALS 25
Slide 26: What is TAS29?
What is TAS29? TAS29 (Turkish Accounting Standards) is an accounting standard that regulates financial reporting in high-inflation economies. The Purpose The aim is to present the financial statements of businesses more accurately by removing the effects of inflation. Indicators of High Inflation ◦
Slide 27: Sales Under TAS29 (TRY million)
Sales Under TAS29 (TRY million) Year-end Data Q1 Data 742,7 3,2% 2.545,1 2.449,4 20,3% 540,4 17,5 7,7% 496,0 196,5 -22,2% -164,8 2022 2023 2023Q1 2024Q1 Sales Net Profit Profit Margin Sales Net Profit Profit Margin 27
Slide 28: Domestic and Export Sales Volume
Domestic and Export Sales Volume Domestic Retail & B2B (‘000 Pieces) Yearly Exports (‘000 Pieces) Total 327 380 446 425 93 76 171 207 335 343 129 52 14 30 6 10 52 70 336 4 321 279 0 5 245 49 3 54 18 264 233 1 1 4 19 1 21 2 0 20 21 148 17 48 6 0 113 2 46 41 70 52 2 91 43 14 6 21 34 39 38 8 35 8 9 8 2
Slide 29: Samsonite Domestic And Export Sales Volumes
Samsonite Domestic And Export Sales Volumes* 246.407 780 669 175.552 103.918 63.634 293 33.875 40.401 170 131 2020 2021 2022 2023 2023 Q1 2024 Q1 Domestic Exports (*) Excluding DESA-Samsonite JV, the figures are solely from DESA owned stores 29
Slide 30: 1Q24 Leather and Leather Goods Exports
1Q24 Leather and Leather Goods Exports • In the first quarter of 2024, total exports reached USD 55.4 billion, showing a 2.5% increase compared to the same period of the previous year. • Again, in Q1 2024, Leather and Leather Products Exports decreased by 28.0%, falling to USD 409 million. • The sha
Slide 31: Turkey's Leather and Leather Goods Exports & DESA
Turkey’s Leather and Leather Goods Exports & DESA (USD millions) + Vallue Adding Difference Industry USD 12 / kg DESA USD 116 / kg Annual Data Quarterly Data 27,8 568,2 2.051,5 502,8 10,7 25,8 1.731,5 1.857,6 409,3 1.331,6 16,2 5,4 13,8 4,9 2020 2021 2022 2023 2022Q1 2023Q1 2024Q1 LLG Desa Expor
Slide 32: EBITDA 2023Q1 & 2024Q1 (TRY million)
EBITDA 2023Q1 & 2024Q1 (TRY million) Under TAS 29 177 (+ 91,2%) 92 2023Q1 2024Q1 Without TAS 29 (+ 216,9 %) 169 53 2023Q1 2024Q1 32
Slide 33: Net Profit 2023Q1 & 2024Q1 (TRY million)
Net Profit 2023Q1 & 2024Q1 (TRY million) 17 Under TAS 29 -165 2023Q1 2024Q1 Without TAS 29 (+ 337,4%) 164 38 2023Q1 2024Q1 33
Slide 34: Net Working Capital – TAS29 (TRY million)
Net Working Capital – TAS29 (TRY million) 34
Slide 35: Income Statement - TAS29
Income Statement - TAS29 01.01- 01.01- TRY million 31.03.2023 31.03.2024 2024Q1 / 2023Q1 31.12.2022 31.12.2023 Revenues 2.545,1 2.449,4 742,7 540,4 -27,2% COGS -1.494,8 -1.232,3 -511,6 -215,2 -57,9% GROSS PROFIT / LOSS 1.050,3 1.217,1 231,1 325,2 40,7% General & Administrative Expenses -60,1 -98,6 -
Slide 36: Balance Sheet and Brief Ratios - TAS29
Balance Sheet and Brief Ratios - TAS29 TRY Million 31.12.2023* 31.03.2024 Current Assets 1.938 1.841 Fixed Assets 1.042 1.026 Total Assets 2.980 2.867 Short Term Liabilities 950 868 Long Term Liabilities 162 133 Equity 1.869 1.866 Total Liabilities 2.980 2.867 Net Cash Position 990,0 977,7 Net Cash
Slide 37: Foreign Currency Position & Loans
Foreign Currency Position & Loans As of 31.03.2024 Bank Loans TRY 978 million EUR 3,2 million EXIMBANK Loan Net Cash USD 29,6 million Term: 2026 Long Position Deposits EUR 3,3 million Long Position USD 0,3 million EUR 3,3 million USD Denominated GBP 0,2 million Eurobonds 29,3 million 37
Slide 38: www.desa.com.tr
www.desa.com.tr https://www.desa.com.tr/investors/ www.1972desa.com www.desainternazionale.it : investor.relations@desa.com.tr : +90 212 473 18 00 DESA Deri @desafashion @desafashion @desafashion Desa Fashion 38
Desa Deri Sanayi ve Ticaret A.Ş. — Q1 2024 Earnings Presentation on 6ix