Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — Investor Presentation (December 2023)
37 slides from Desa Deri Sanayi Ve Ticaret A.s's investor presentation, December 2023
Slide 1: Investor Presentation
12.2023 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 1.536 Employees 1 Online 95 DESA 17 JV produ
Slide 5: Investment Summary
Investment Summary Considerable FX gains on differentiated business structure Possible opportunities for luxury goods’ export on newly establihed Italian factory 2nd Generation in Management: Family business in harmony Strong cash postion at the end of 2023: Net cash poisition of TRY 778,8 million,
Slide 6: Shareholding Structure & Board of Directors
Shareholding Structure & Board of Directors Diğer Board of Directors Position 2% Melih Çelet 18% Melih Çelet Chairman Serbest Dolaşım 17% Burak Çelet Vice Chairman Melih Çelet 10% Burçak Çelet Board Member Diğer Bahar Deniz Egemen Independent Board Member 1% Serbest Dolaşım Numan Emre Bilge Independ
Slide 7: Business Overview
Vertically Integrated Business Model Production Facilities Investment in Italy Turquality Program NINETEENSEVENTYTWODESA 02 New e-commerce Channel: Zalando BUSİNESS OVERVIEW 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 Group owned 112 stores with process imported leather Leather bag and apparel 14.812
Slide 9: Production Facilities & Employees
Production Facilities & Employees Sefaköy Factory & HO Düzce Çorlu Tannery 15.500 m² Tuscany Factory Factory 2.000 m² 20.000 m² 10.000 m² Napa sheepskin, double-face Production of leather goods and Production of clothing and Production of clothing and and suede processing apparel, Showrooms, Design
Slide 10: Investment in Italy - Production Facility and R&D Center
Investment in Italy - Production Facility and R&D Center July 2022 January 2023 Decision of investment 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 Sep
Slide 11: Production Facility and R&D Center
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 MANUELA COCCI (2022-2023) (2023-2024) Reputable Design Director of many luxury brands such as Respected and highly experienced Designer and Creative Bear Milano - Versace - Costume National - Day Birger Et Director from well known luxury brands like Prada - Miu
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: New e-commerce Channel: Zalando
New 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 offer a wide
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 60,000 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 A hope A Life Project (Bir Umut Bir Yaşam Projesi) Every Loop is A Support to A Women (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: Sales 2022 & 2023 (in TRY million)
Sales 2022 & 2023 (in TRY million) %18,7 %43,6 Before 1.952 559 TMS 29 471 1.359 (IAS29) Q4/22 Q4/23 2022 2023 %-3,8 After TMS 29 2.545 (IAS29) 2.449 2022 2023 26
Slide 27: Number of Goods for Domestic Sales and Exportations
Number of Goods for Domestic Sales and Exportations Domestic Retail & B2B (‘000 Pieces) Yearly Exportations (‘000 Pieces) 377 399 171 207 335 343 494 434 327 380 446 425 2 8 9 14 30 9 118 136 6 10 52 70 367 4 309 336 321 0 279 5 49 245 3 265 54 264 230 233 3 2 4 36 34 1 21 1 148 0 20 21 17 48 113 58
Slide 28: Number of Samsonite Domestic And Export Sales
Number of Samsonite Domestic And Export Sales* 246.407 780 669 175.552 157.442 103.918 63.634 170 2019 2020 2021 2022 2023 Domestic Exports (*) Excluding DESA-Samsonite JV, the figures are solely from DESA owned stores 28
Slide 29: 2023 Leather and Leather Goods Exportations
2023 Leather and Leather Goods Exportations • Despite the depreciation of the Turkish Lira against other currencies, Turkey's overall exports have been negatively impacted by geopolitical developments • Total exports in 2023 amounted to USD 221.7 billion, lagging behind 2022 exports by 2.0% • During
Slide 30: Turkey's Leather and Leather Goods Exports & DESA
Turkey’s Leather and Leather Goods Exports & DESA (in USD millions) + Vallue Adding Difference Industry USD 12 / kg DESA USD 116 / kg In Nominal +7,8 28 Terms Without % TMS29 26 1.732 2.052 - % 9,5 1.858 1.332 16 14 2020 2021 2022 2023 Export Leather and LG Export_DESA 30
Slide 31: EBITDA 2022 & 2023 (in TRY million)
EBITDA 2022 & 2023 (in TRY million) %41,5 %63,8 Before 224 TMS 29 158 639 (IAS29) 390 Q4/22 Q4/23 2022 2023 %7,3 After TMS 29 (IAS29) 904 842 2022 2023 31
Slide 32: Net Profit 2022 & 2023 (in TRY million)
Net Profit 2022 & 2023 (in TRY million) %88,3 %121,0 Before 635 TMS 29 223 (IAS29) 287 119 Q4/22 Q4/23 2022 2023 After %152,4 TMS 29 (IAS29) 496 197 2022 2023 32
Slide 33: Net Working Capital - TMS29
Net Working Capital - TMS29 (in TRY million) + % 34,6
Slide 34: Income Statement - TMS29
Income Statement - TMS29 01.01- 01.01- TRY million Change 31.12.2022 31.12.2023 Revenues 2.545,1 2.449,4 -3,8% COGS -1.494,8 -1.232,3 -17,6% GROSS PROFIT / LOSS 1.050,3 1.217,1 15,9% General & Administrative Expenses -60,1 -98,6 64,2% Marketing, Sales and Distribution Costs -478,2 -590,6 23,5% R&D c
Slide 35: Balance Sheet and Brief Ratios - TMS29
Balance Sheet and Brief Ratios - TMS29 (TRY Million) 31.12.2022 31.12.2023 Change Current Assets 1.524 1.684 10,5% Fixed Assets 811 906 11,7% Total Assets 2.335 2.590 10,9% Short Term Liabilities 924 825 -10,7% Long Term Liabilities 308 141 -54,3% Equity 1.103 1.624 47,2% Total Liabilities 2.335 2.5
Slide 36: Foreign Currency Position & Loans
Foreign Currency Position & Loans As of 31.12.2023 Bank Loans TRY 778 million EUR 3,6 million EXIMBANK Loan Net Cash USD 14,9 million Term: 2026 Long Position Deposits EUR 9,1 million EUR 3,1 million Long Position USD 9,5 million GBP 1,2 million EUR 5,5 million USD Denominated equivalent KKM* Eurobo
Slide 37: www.desa.com.tr https://www.desa.com.tr/investors/ www.1972desa.com
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 37
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