Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — 1H 2023 Earnings Presentation
33 slides from Desa Deri Sanayi Ve Ticaret A.s's earnings presentation, Aug 8, 2023
Slide 1: 1H'23 Investor Presentation
1H’23 Investor Presentation August 8, 2023
Slide 2: Content
01 Introduction 02 Business Overview 03 ESG & Sustainabilty 04 Financials CONTENT 2
Slide 3: Introduction
At a Glance: Investment Case Shareholding Structure 01 INTRODUCTION 3
Slide 4: At a Glance
at a Glance 1972 Stores Establishment 14.844 m² Production Facilities %35 2004 Store Area Free Float IPO 114 15.500 m² Total Stores Closed Area Sefaköy Factory & HQ 1.600 Employees 4 Online 94 DESA 16 JV 20.000 m² Closed Area Tannery Facility International Design Team 10.000 m² Closed Area Samsonite
Slide 5: Investment Case
Investment Case 1.359 Diversified business with substantial FX- denominated revenues New factory in Italy opening new opportunities in luxury export 428 432 2nd generation family ownership & management: 348 Alignment of interests 233 207 152 2016 2017 2018 2019 2020 2021 2022 High cash levels ($26m)
Slide 6: Shareholders Structure & Board of Directors
Shareholders Structure & Board of Directors Board of Directors Duty Melih Çelet Chairman 10.0% 54.3% Melih Çelet Çelet Holding A. Ş. Burak Çelet Vice Chairman Burçak Çelet Board Member Bahar Deniz Egemen Independent Board Member Numan Emre Bilge Independent Board Member 0.8% Other Privileges 5.1% 4
Slide 7: Shareholder Structure
Shareholder Structure 30.06.2023 31.03.2023 Stock Stock (*) As of March 31, 2023, within the publicly traded portion, a total of Name Stock Ratio Stock Ratio 4,129,566 shares representing 8.39% ownership belong to Çelet Holding A.Ş., Amount Amount 4,213,569 shares representing 8.56% ownership belong
Slide 8: Business Overview
Vertical Integrated Business Model Production Facilities Investment in Italy Capacity and Machinery Turquality Program 02 Zalando Sustainability BUSINESS OVERVIEW
Slide 9: Vertical Integrated Business Model
Turkey’s sole Vertical Integrated Business Model retail company having a production facility in Italy Raw Material Production Final Product Manufacturing Retail Sales Leather Production at the Leather Apparel and Bag A total of 114 stores spread across Çorlu Tannery Production at Istanbul, Düzce, 14
Slide 10: Production Facilities
Production Facilities Headquarters & Düzce Tuscany Çorlu Leather Factory Sefaköy Factory Factory Factory & Tanning Facilities 15.500 m² 10.000 m² 2.000 m² 20.000 m² Design Studio, Prototype Facility, Production of clothing and Production of clothing and Napa Sheepskin, Double- Showrooms, Leather Goo
Slide 11: Investment in Italy – Production Facility – R&D Center
Investment in Italy – Production Facility – R&D Center July 2022 January 2023 The investment decision has been made. The machines arrived and were installed. August 2022 March 2023 Desa Internazionale SRL was established in Milan and joined the Recruitment has begun. DESA family with Mr. Norcini ser
Slide 12: Italy Production Facility and R&D Center
Italy Production Facility and R&D Center 12
Slide 13: Italy – Capacity and Machinery List
Italy – Capacity and Machinery List Desa Internazionale facility encompasses the entire production process, from pattern making and prototyping to fully finished bags and small leather goods. Some Machines Installed in Italy Facility: • Comelz computerized cutter • Juki AMS computerized sewing machi
Slide 14: Turquality Program
Turquality Program A member of the program since 2006 Half of our expenses made Build abroad are paid by the Goodwill Rather than Acquire Goodwill Turkish Government 14
Slide 15: Zalando: New Sales Channel
Zalando: New Sales Channel ◦ Europe’s Leading Fashion E-Commerce Site DESA products are offered for sale on ◦ The contract was signed in August 2022. Europe’s leading fashion e-commerce site ◦ Sales started in January 2023. ◦ Online sales in five countries: Germany – Belgium – Netherland – Austria –
Slide 16: ESG & Sustainability
Düzce Solar Power Plant Çorlu 03 Solar Power Plant Certificates ESG & SUSTAINABILITY 16
Slide 17: Solar Power Plant - Düzce
Solar Power Plant - Düzce • 7.000 m² Düzce Factory was built on the roof area • 800 kWh power • Commissioned in August 2022 • TRY 12 M investment cost • Expected return on investment with current energy costs in 4-5 years • Total electrical energy production in the first monthly test production of 1
Slide 18: Solar Power Plant - Çorlu
Solar Power Plant - Çorlu At the Board of Directors meeting dated November 9, 2022, it was decided to install a SPP in Tekirdağ/Çorlu Factory. 3.300 m² Çorlu Factory will be built on the roof area 641 kW power TRY 8.6 M approximate investment cost Production above 90% factory consumption 1
Slide 19: "Gold Rated" by Leather Working Group
Certifications "Gold Rated" by Leather Working Group Became accredited in 2021 Acquired “Gold Rate”, which is only awarded to 31 companies worldwide at the moment 17 agenda items such as water and energy usage, waste management, use of approved chemicals, etc. Leather Working Group Respons
Slide 20: HIGG Index
Certifications HIGG Index Higg-certified in all facilities +250 members Established in 2010 The standard that evaluates (SAC) Developed by environmental and social the Sustainable sustainability throughout Garment Coalition the supply chain in the garment and shoes industry Higg FEM Higg FSLM (Facil
Slide 21: Sedex-certified in all facilities
Founded in 2004 Sedex-certified in all facilities 60,000 members in 180 countries Member since 2005 All DESA facilities are subject to annual 3rd party external audit. Certifications 21
Slide 22: Financials
Financial Highlights 1Q23 Results Overview Sales EBITDA Development Net Operational Working Capital Capital Expenditures 04 Income Statement Balance Sheet FINANCIALS Share Information & Performance 22
Slide 23: 2Q'23 Results Overview
2Q’23 Results Overview * 1.46x FX-based Export Revenue Growth 1.30x Increase in Average Bag Sales Price 2.07x Increase in Average Shoe Sales Price 1.59x 1.76x 4.08x TRY 586M Revenue EBITDA Net Income Net Cash Increase Increase Increase Position (*) All data are compared with the data of the 2Q’22. 2
Slide 24: Sales Growth
Sales Growth Annual (TRY’M) Quarterly (TRY’M) 1.359 471 427 430 430 270 428 432 192 348 233 2018 2019 2020 2021 2022 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 CAGR YoY 41% ‘18 – ‘22 59% 2Q’23/2Q’22 24
Slide 25: Export Performance
Export Performance Exports (TRY’M) 448 Value Added 165 205 159 160 206 Export 117 114 95 94 77 Export Value Per Kg 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 DESA: 116 USD CAGR 28% ‘18 – ‘22 25
Slide 26: EBITDA Development
EBITDA Development Annual (TRY’M) Quarterly (TRY’M) Margin 11.2% 17.3% 23.4% 23.2% 28.7% 20,1% 24,9% 29,7% 33,6% 12,4% 27,5% 390 100 158 127 118 74 55 67 53 39 39 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 78% CAGR 76% ‘18-’22 2Q’23/2Q’22 26
Slide 27: Net Operational Working Capital
Net Operational Working Capital 44 46 106 190 145 91 TRY’m TRY’m TRY’m TRY’m TRY’m TRY’m 163 165 155 219 198 146 97 167 161 205 214 30 147 27 38 62 19 -113 -77 -136 -161 -37 -54 -37 -358 -47 -449 -64 -58 2018 2019 2020 2021 2022 1H'23 (+) Cash & Cash Equivalents (+) Trade Receivables (+) Inventories
Slide 28: Capital Expenditures
Capital Expenditures Retail Production Other Annual (TRY’m) 25,63 0,046 17,33 9,4 3,07 0,04 1,1 0,078 8,2 8,2 0,92 2,1 2021 2022 1H'2023 %0,7 %1,9 %1,1 Capex / Revenue 28
Slide 29: Summary Income Statement
Summary Income Statement Summary Income Statement (TRY’m) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 / 1Q23 2Q23 / 2Q22 1H22 1H23 1H23 / 1H22 REVENUES 192 270 427 471 430 430 0% 59% 462 859 86% GROSS PROFIT 70 105 182 209 134 197 47% 89% 174 331 90% Sales and Marketing Expenses -41 -53 -78 -81 -97 -109 13%
Slide 30: Summary Balance Sheet
Summary Balance Sheet Summary Balance Sheet (TRY’m) 31.12.2022 31.03.2023 30.06.2023 Current Assets 886 930 1.139 Fixed Assets 397 451 487 Total Assets 1.283 1.381 1.626 Short Term Liabilities 561 619 651 Long Term Liabilities 148 154 173 Shareholders Equity 574 608 802 Total Liabilities and Shareho
Slide 31: Net Cash Position
Net Cash Position (TRY) 2020 2021 2022 1Q 2023 1H 2023 Cash and Cash Equivalents 61.657.966 147.111.619 205.354.810 138.171.473 214.460.837 Financial Investments 0 0 265.882.311 368.819.906 507.671.495 Short-Term Bank Loans 33.390.433 3.787.394 5.802.017 5.792.324 2.282.501 Short-Term Portions of Lo
Slide 32: Share Information and Performance
32 0 5 10 15 20 25 01.06.2020 22.06.2020 13.07.2020 06.08.2020 Date: May 6, 2004 27.08.2020 BIST Code: DESA Share Information: 17.09.2020 Reuters Code: DESA.IS 08.10.2020 Bloomberg Code: DESA.TI 30.10.2020 Initial Public Offering (IPO) 20.11.2020 11.12.2020 04.01.2021 25.01.2021 15.02.2021 08.03.202
Slide 33: Thank You
Investor Relations Manager Dr. A. Berrak Köten THANK E-mail: berrak.koten@desa.com.tr yatirimci.iliskileri@desa.com.tr Web Site: www.desa.com.tr https://www.desa.com.tr/investors/ YOU… investor.relations@desa.com.tr www.1972desa.com Telephone: +90 212 473 1800 www.desainternazionale.it Linkedin: DES
Desa Deri Sanayi ve Ticaret A.Ş. — 1H 2023 Earnings Presentation on 6ix