Doğanlar Furniture Improvements

Doğanlar Furniture Group established Doğtaş Northern Cyprus in June 2021, and Doğtaş Senegal, and Doğtaş USA in July 2021 to further consolidate its business presence in international markets. In May 2022, the Group completed the incorporation process of Kelebek Britain.

On September 12, 2023, D’Afric Senegal furniture factory was inaugurated with the participation of Senegalese President Macky Sall on a 52,800-square-meter land in Dakar. With this investment, we aim to produce mattresses, plinths, headboards and upholstered products under the BİGA Home brand in Senegal. In addition to our sales in the local market, we intend to export to the entire African market, primarily 15 Ecowas (Economic Community of West African States) countries and Mauritania as well as to overseas countries including the USA.

Our Company took over 100 percent of the shares representing the capital of D’Afric Senegal Furniture S.A., established in accordance with Senegalese law, from Doğanlar Yatırım Holding Anonim Şirketi on December 29, 2023.

İsmail Doğan was appointed the Chairman of the Board of Directors, taking over from Davut Doğan. Davut Doğan continues to serve in our Company as the Honorary Chairman and a Board Member.

İsmail Doğan, who has been serving as a Board Member and CEO in our Company, handed over the CEO position to Mustafa Karamemiş in April 2023.  Karamemiş has over 30 years of experience in the furniture industry. With this significant value he has added to our company, we are making even stronger strides towards accomplishing our goals.

Doğanlar Furniture Group ranked first in the furniture industry this year, as it did last year, in the “Türkiye’s Happiest Workplace” survey, a collaboration between Happy Place to Work and Capital Magazine.

Doğanlar Furniture Group has been a part of the Turquality support program with its Doğtaş brand since 2008. The five-year development roadmap submitted to the Ministry of Trade was approved by the Ministry, and the Turquality support period for Doğtaş was extended until December 2028 on December 12, 2023.

Doğanlar Furniture Group has been on a continuous growth trajectory at home and abroad. The company had acquired new points of sales in Türkiye and abroad, bringing the total to 730 by the end of 2023.

Through the Digital Transformation Projects initiated in July, Doğanlar Furniture Group aims to accelerate business processes and operations equipped with SAP S/4HANA, SAP Cloud and Google solutions, to automate all processes, to support the easy and quick adaptation of business processes with each other and with market variables, to ensure continuous improvement between operations, and to reduce risk and increase security level.

To protect our Company’s shareholders, to ensure a stable share price consistent with its real value, and to protect the trust of our investors, a total of 11,598,392 Turkish lira worth of shares were repurchased in 2023 with the Board of Directors decision under the CMB’s Communiqué No. II-22.1 on Buy-Back Shares and the relevant announcement dated February 14, 2023. As of December 31, 2023, the total nominal value of the shares owned by our company reached 14,636,238 Turkish lira, and the ratio of shares to capital amounted to 4.18 percent.

As Doğanlar Furniture Group, we have carried out a qualified and dynamic organizational restructuring to provide our company with a stronger and more focused structure within our strategic plans and vision. The Technical Assistant General Manager position was restructured, and a new appointment was made to the CFO position. The “Operations Management” department was established, and the COO was appointed to oversee it, reporting directly to the CEO.

We launched our carbon footprint studies as part of Net Zero Emissions by 2050 vision. We aim to comply with these regulations by measuring and reducing our carbon footprint. Our work under the Net Zero Vision will help us become ready to implement CBAM. At the same time, energy use and other costs will be reduced in line with our reduced carbon footprint. Consumers’ awareness of the environmental impact of the products and services they use will also increase. We continuously improve  our efforts to reduce resource consumption and pollution in our enterprises, which helped our production facilities to receive the Zero-Waste Certificate issued by the Ministry of Environment, Urbanisation and Climate Change.

After the General Assembly Meeting held on August 8, 2023, we renewed the Dividend Distribution Policy.  Regulations have been established to ensure that a minimum 40 percent of the distributable profit for the period may be distributed to shareholders. The sums will be calculated as per the capital markets legislation by taking into account the performance of our Company in the relevant year, macroeconomic conditions, investments, and cash flow.

This year, our brands received several important awards, continuing their successful annual run of formal recognition. At the award ceremony organized by Brandverse Awards, Kelebek Furniture won the gold award in the Social Media Data Analytics category for the third time in a row. In addition, Kelebek Fijital project received two gold awards in the Digital Customer Experience and Use of VR/AR Technology categories. The Hammers Awards recognized the Kelebek Furniture’s “Kelebek Fijital” project with a gold award. Moreover, Doğtaş earned the silver award in the Social Media Usage and Data Analytics in the Furniture Industry category by Brandverse Awards.

As part of our company strategies, the “Corporate Sales” department was established to manage the corporate sales channel more effectively and with greater focus. In addition, Kelebek Kitchen-Bathroom was restructured to form the Projected Works Kitchen-Bathroom department. During the year, the Company took part in many important projects such as the Yeşilovacık Housing Project in Mersin, the Urban Transformation Housing

and Commercial Constructions Project in Istanbul Beyoğlu Okmeydanı, the İnvest Vadi Project in Istanbul Sarıyer, and the Best Vadi Project in Istanbul Levent.