Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — Q3 2024 Earnings Presentation
38 slides from Desa Deri Sanayi Ve Ticaret A.s's earnings presentation, 2024
Slide 1: 2024 Q3 Investor Presentation
2024 Q3 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 14.789 m² SefaköyProduction Facilities Factory & Head Office IPO Free Float Total Number 2004 35% of Stores production facility of 20.000 m² 111 Çorlu Tannery Facility 1.550 Employees 1 Online 94 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 Solid cash position at the end of 3Q24: Net cash posi
Slide 6: Shareholding Structure & Board of Directors
Shareholding Structure & Board of Directors Adesa 2% Melih Çelet 18% Board of Directors Position Free Float 17% Melih Çelet Chairman Burak Çelet Vice Chairman Melih Çelet 10% Burçak Çelet Board Member Others 1% Bahar Deniz Egemen Independent Board Member Free Float Mehmet Kaan Koz Independent Board
Slide 7: Business Overview
Vertically Integrated Business Model Production Facilities Investment in Italy Turquality Program 02 1972DESA BUSINESS OVERVIEW Cross-border E-commerce 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 111 stores with process imported leather Leather bag and apparel 14.789 m² of space
Slide 9: Production Facilities & Employees
Production Facilities & Employees 61% 39% 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 (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 • Covers approximately 7.000 m2 of the total 7.700 m2 roof of Düzce Factory • 1,023 MW Panel Capacity/ 0,800 MWe Installed Capacity • Started operating on August 2022 • Investment Cost of TRY 13,4 million • Expected to reach the break-even within 4-5 year range considering the current ener
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 2012 40.000+ users 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 (Fac
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 (TAS, Turkish Accounting Standards) is an accounting standard that regulates financial reporting in high- inflation economies. The Purpose is to present the financial statements of businesses more accurately by removing the effects of inflation. Indicators of High Inflation ◦ Th
Slide 27: Sales Under TAS29 (TRY million)
Sales Under TAS29 (TRY million) Year-end Data 9M2023 vs 9M2024 2.545,1 2.449,4 20,3% 2.545,8 13,8% 11,2% 2.074,2 7,7% 496,0 196,5 284,7 285,2 2022 2023 9M2023 9M2024 Sales Net Profit Profit Margin Sales Net Profit Profit Margin 27
Slide 28: Domestic and Export Sales Volume
Domestic and Export Sales Volume Yearly and 9 Month Domestic Retail & B2B (‘000 Pieces) Yearly and 9 Month Exports (‘000 Pieces) Total 327 380 446 425 321 307 171 207 335 343 283 163 14 30 6 10 52 28 70 8 336 4 51 321 279 0 5 9 245 49 247 227 3 5 54 264 45 233 1 4 15 2 7 196 1 21 0 20 21 13 148 17 4
Slide 29: Samsonite Domestic And Export Sales Volumes
Samsonite Domestic And Export Sales Volumes* 246.407 780 669 175.552 388 103.918 293 63.634 62.159 46.963 40.401 46.585 170 75 90 0 2020 2021 2022 2023 3Q23 1Q24 2Q24 3Q24 Domestic Exports (*) Excluding DESA-Samsonite JV, the figures are solely from DESA owned stores 29
Slide 30: 9M24 Leather and Leather Goods Exports
9M24 Leather and Leather Goods Exports • Turkey’s total exports reached USD 192,8 billion in the 9 months of 2024, showing a 3,2 % increase compared to the same period of the previous year • In the same period, Leather and Leather Products’ Exports decreased by 21,3 %, falling to USD 1.167,9 million
Slide 31: Turkey's Leather and Leather Goods Exports & DESA
Turkey’s Leather and Leather Goods Exports & DESA (USD millions) + Value Adding Difference Industry USD 12 / kg DESA USD 116 / kg Annual Data 27,8 9 Month Data 2.051,5 25,8 1.731,5 1.857,6 23,3 1.530,7 1.484,6 17,4 1.331,6 1.167,9 16,2 15,1 13,8 2020 2021 2022 2023 9M2022 9M2023 9M2024 L & LG De
Slide 32: EBITDA: 9 Months of 2023 & 2024 (TRY million)
EBITDA: 9 Months of 2023 & 2024 (TRY million) 722 Under TAS 29 666 (-7,7 %) 9M2023 9M2024 Without TAS 29 (+ 3,7 %) 416 431 9M2023 9M2024 32
Slide 33: Net Profit: 9 Months of 2023 & 2024 (TRY million)
Net Profit: 9 Months of 2023 & 2024 (TRY million) 285 285 Under TAS 29 (+ 0,2 %) 9M2023 9M2024 Without TAS 29 464 (+ 21,3 %) 383 9M2023 9M2024 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- 9M24 vs 9M23 TRY million 01.01-31.12.2022 31.03.2023 30.06.2023 30.09.2023 31.03.2024 30.06.2024 30.09.2024 31.12.2023 Change % Revenues 2.545,1 2.449,4 742,7 1.561,4 2.545,8 540,4 1.240,1 2.074,2 -18,5% COGS -1.494,8 -1.232,3 -511,6 -971,5 -1.374,2 -215,2 -497,2 -889
Slide 36: Balance Sheet and Summary Ratios - TAS29
Balance Sheet and Summary Ratios - TAS29 TRY Million 31.12.2023* 30.09.2024 Current Assets 2.288 2.889 Fixed Assets 1.230 1.439 Total Assets 3.519 4.328 Short Term Liabilities 1.121 1.614 Long Term Liabilities 191 215 Equity 2.206 2.500 Total Liabilities 3.519 4.328 Net Cash Position 860,4 1.140,6 N
Slide 37: Foreign Currency Position & Loans
Foreign Currency Position & Loans As of 30.09.2024 Bank Loans TRY 1.140 million EUR 2,8 million EXIMBANK Loan Net Cash USD 29,3 million Term: 2026 Long Position 13,7 million EUR Bank Loan Term: December 2024 EUR 18,5 million Deposits & Financial Investments GBP 2,7 million Short Position USD Denomin
Slide 38: Contact details
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.S. — Q3 2024 Earnings Presentation on 6ix