Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — Q3 2023 Earnings Presentation
44 slides from Desa Deri Sanayi Ve Ticaret A.s's earnings presentation, 2023
Slide 1: 3Q'23 Investor Presentation
3Q’23 Investor Presentation
Slide 2: Content
01 Introduction 02 Business Overview 03 ESG & Sustainability 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 14.651 m² Production Facilities %35 2004 Store Area Free Float IPO 114 15.500 m² Total Stores Closed Area Sefaköy Factory & HQ 1.694 Employees 4 Online 93 DESA 17 JV 20.000 m² Closed Area Tannery Facility International Design Team 10.000 m² Closed Area Samsonite
Slide 5: Investment Case
Investment Case Diversified business with substantial FX- 1,359 denominated revenues New factory in Italy opening new opportunities in luxury export 2nd generation family ownership & management: 432 428 Alignment of interests 348 207 233 152 Strong Balance Sheet 2016 2017 2018 2019 2020 2021 2022 ($
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 30.09.2023 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: New e-Commerce Channel 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 Napa Sheepskin, Double- Showrooms, Leather Goods, and Production of cloth
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” 17 agenda items such as water and energy usage, waste management, use of approved chemicals, etc. Leather Working Group Responsible for the world’s leading environmental certification in the
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 3Q’23 Results Overview Sales EBITDA Development Net Operational Working Capital Capital Expenditures 04 Income Statement Balance Sheet FINANCIALS Share Information & Performance 22
Slide 23: 3Q'23 Results Overview (TRY)
3Q’23 Results Overview * 1.17x FX-based Export Revenue Growth 1.74x Increase in Average Bag Sales Price 1.87x Increase in Average Shoe Sales Price 1.24x 1.92x 1.82x TRY 666M EBITDA Net Income Net Cash Revenue Increase Increase Position Increase (*) All data are compared with the data of the 3Q’22. 2
Slide 24: 3Q'23 Results Overview (USD)
3Q’23 Results Overview * 1.17x FX-based Export Revenue Growth 1.25x Increase in Average Bag Sales Price 1.21x Increase in Average Shoe Sales Price -0.83x 1.28x 1.16x USD 24 M Revenue EBITDA Net Income Net Cash Increase Increase Increase Position (*) All data are compared with the data of the 3Q’22.
Slide 25: Sales Growth (TRY)
Sales Growth Annual (TRY’M) Quarterly (TRY’M) 1,359 534 471 427 430 430 270 428 432 192 348 233 2018 2019 2020 2021 2022 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 CAGR YoY 41% ‘18 – ‘22 57% 3Q’23/3Q’22 25
Slide 26: Sales Growth (USD)
Sales Growth Annual (USD’M) Quarterly (USD’M) 75 82 72 48 24 25 23 17 20 20 33 14 2018 2019 2020 2021 2022 1Q.22 2Q.22 3Q.22 4Q.22 1Q.23 2Q.23 3Q.23 CAGR 57% ‘20 – ‘22 CAGR YoY 3% ‘18 – ‘22 -16% 3Q’23/3Q’22 26
Slide 27: EBITDA Growth (TRY)
EBITDA Growth Annual (TRY’M) Quarterly (TRY’M) Margin 11.4% 17.3% 23.4% 23.2% 28.7% 20,1% 24,9% 29,7% 33,6% 12,4% 27,5% 45,7% 390 244 100 158 127 118 74 55 67 53 40 39 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 77% CAGR 167% CAGR 93% ‘18-’22 ‘20-’22 3Q’23/3Q’22 27
Slide 28: EBITDA Growth (USD)
EBITDA Growth Annual (USD’M) Quarterly (USD’M) Margin 11.4% 17.3% 23.4% 23.2% 28.7% 20.1% 25.1% 30.2% 34.2% 12.4% 27.4% 45,7% 23 13 11 8 8 3 8 3 9 7 6 4 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 CAGR 30% ‘18-’22 CAGR 74% ‘20-’22 29% 3Q’23/3Q’22 28
Slide 29: Net Profit Growth (TRY)
Net Profit Growth Annual (TRY’M) Quarterly (TRY’M) 287 192 182 119 100 38 18 21 47 8 2 46 2018 2019 2020 2021 2022 Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 81% CAGR YoY 143% ‘18 – ‘22 1221% ‘20 – ‘22 CAGR 3Q’23/3Q’22 29
Slide 30: Net Profit Growth (USD)
Net Profit Growth Annual (USD’M) Quarterly (USD’M) 18 9 7 2 3 6 6 5 2 2 3 0,2 2018 2019 2020 2021 2022 Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 21% CAGR YoY CAGR 78% ‘18 – ‘22 759% ‘20 – ‘22 3Q’23/3Q’22 30
Slide 31: Export Performance (TRY)
Export Performance Exports (TRY’M) 448 Value Added 165 205 159 160 206 196 Export 117 114 95 94 77 Export Value Per Kg 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 DESA: 116 USD 28% YoY 68% CAGR ‘18 – ‘22 ‘3Q.23 – ‘3Q.22 31
Slide 32: Export Performance (USD)
Export Performance Exports (USD’M) Value 35 34 Added 26 Export 16 14 11 8 6 6 5 5 7 Export Value Per Kg 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 DESA: 116 USD CAGR 36% ‘20 – ‘22 17% YoY ‘3Q.23 – ‘3Q.22 32
Slide 33: Net Operational Working Capital (TRY)
Net Operational Working Capital 145 91 130 44 46 106 190 TRY’m TRY’m TRY’m TRY’m TRY’m TRY’m TRY’m 165 0 163 226 155 219 198 161 146 97 236 167 205 214 38 30 147 27 62 72 19 -113 -77 -136 -161 -37 -54 -37 -358 -47 -404 -449 -64 -58 2018 2019 2020 2021 2022 1H'23 9M'23 (+) Cash & Cash Equivalents (+)
Slide 34: Net Operational Working Capital (USD)
Net Operational Working Capital 8.3 7.7 14.2 14.2 7.7 4.7 5.0 USD’M USD’M USD’M USD’M USD’M USD’M USD’M 9 9 12 20 0 27 11 8 32 11 7 4 6 9 11 11 11 8 5 3 3 -10 -12 -15 -21 -19 -23 -23 -7 -4 -3 -7 -6 -3 2018 2019 2020 2021 2022 1H'23 9M'23 (+) Cash & Cash Equivalents (+) Trade Receivables (+) Inventor
Slide 35: Capital Expenditures (TRY)
Capital Expenditures Retail Production Other Annual (TRY’m) 36,4 0 2.46 25,63 0.046 17.33 9,4 34 0.04 3,07 1.1 0.078 8.2 8.2 0.92 2.1 2021 2022 1H'2023 9M'23 %0,7 %1,9 %1,1 %2,6 Capex / Revenue 35
Slide 36: Capital Expenditures (USD)
Capital Expenditures Retail Production Other Annual (USD) 1,608,649 1,494,174 0 110,661 245,595 925,253 486,712 1,529,464 232,060 2,084 57,321 5,842 68,913 437,800 427,305 157,303 2021 2022 1H'2023 9M'2023 %0,7 %1,9 %1,1 %2,6 Capex / Revenue 36
Slide 37: Summary Income Statement (TRY)
Summary Income Statement Summary Income Statement (mn TL) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 3Q23/2Q23 3Q23/3Q22 9M22 9M23 9M23/9M22 REVENUES 192 270 427 471 430 430 534 24% 25% 888 1,393 57% GROSS PROFIT 70 105 182 209 134 197 336 70% 85% 356 667 87% Sales and Marketing Expenses -41 -53 -78 -81 -97
Slide 38: Summary Income Statement (USD)
Summary Income Statement Summary Income Statement (USD’m) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 3Q23/2Q23 3Q23/3Q22 9M22 9M23 9M23/9M22 REVENUES 14 17 24 25 23 20 20 -3% -16% 55 63 16% GROSS PROFIT 5 7 10 11 7 9 13 33% 24% 22 29 33% Sales and Marketing Expenses -3 -3 -4 -4 -5 -5 -5 -13% 4% -11 -15 39%
Slide 39: Summary Balance Sheet (TRY)
Summary Balance Sheet Summary Balance Sheet (TRY’m) 31.12.2022 31.03.2023 30.06.2023 30.09.2023 Current Assets 886 930 1.139 1.335 Fixed Assets 397 451 487 518 Total Assets 1.283 1.381 1.626 1.853 Short Term Liabilities 561 619 651 705 Long Term Liabilities 148 154 173 166 Shareholders Equity 574 60
Slide 40: Summary Balance Sheet (USD)
Summary Balance Sheet Summary Balance Sheet (USD’M) 31.12.2022 31.03.2023 30.06.2023 30.09.2023 Current Assets 47 47 44 49 Fixed Assets 21 24 19 19 Total Assets 68 72 63 68 Short Term Liabilities 30 32 25 26 Long Term Liabilities 8 8 7 6 Shareholders Equity 31 32 31 36 Total Liabilities and Sharehol
Slide 41: TL 666 M Net Cash
Net Cash Position (TL) 2021 9M 2022 2022 1Q 2023 1H 2023 9M 2023 Cash and Cash Equivalents 147,111,619 277,762,161 205,354,810 138,171,473 214,460,837 72,498,822 Financial Investments 0 60,218,127 265,882,311 368,819,906 507,671,495 697,725,714 Short-Term Bank Loans 3,787,394 8,908,807 5,802,017 5,7
Slide 42: USD 24 M Net Cash
Net Cash Position (USD’M) 2020 2021 2022 1Q 2023 1H 2023 9M 2023 Cash and Cash Equivalents 8 11 11 7 8 3 Financial Investments 0 0 14 19 20 25 Short-Term Bank Loans 4 0.30 0,30 0,30 0,09 0 Short-Term Portions of Long-Term 3 3 3 3 2 1 Borrowings Long-Term Bank Loans 10 9 4 3 3 2 NET CASH -9 - 1.2 18
Slide 43: Share Information and Performance
43 0 5 10 15 20 25 30 31.12.20 11.01.21 22.01.21 02.02.21 13.02.21 24.02.21 07.03.21 Date: May 6, 2004 18.03.21 BIST Code: DESA Share Information: 29.03.21 09.04.21 20.04.21 Reuters Code: DESA.IS 01.05.21 12.05.21 Bloomberg Code: DESA.TI 23.05.21 Initial Public Offering (IPO) 03.06.21 14.06.21 25.06
Slide 44: 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
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