Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — FY2021 Earnings Presentation
23 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Feb 22, 2022
Slide 1: Earnings Release
Kordsa.com Earnings Release Feb 22, 2022
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by KORDSA Teknik Tekstil Anonim Şirketi (the “Company”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or
Slide 3: Agenda
AGENDA 01. 02. 03. 2021 in Brief Highlights/ Market Dynamics Lowlights 04. 05. ESG Focus Key Financials 3
Slide 4: 2021 in Brief
4 REVENUE EBITDA MARGIN 888 MUSD 15.4% All Hard- Currency 137 MUSD 37% ↑ YOY robust margin NET INCOME VOLUME GROWTH FCF 96 211 MUSD 30% MTL ~ 5 fold increase Strong demand in Improvement in WC tire reinforcement 28.5 M$ investment
Slide 5: 4Q'2021 Snapshot
5 4Q’2021 Snapshot RESULTS DRIVERS • 2.5% volume growth • Revenue increase back of raw material prices (40% NY; 25% PET) USD-Based Revenue 31.4% • Construction revenue doubled (2.0M$) Growth (vs 4Q’20) • 3M$ revenue growth in composite segment • Demand growth not shadowed by automotive industry issu
Slide 6: YE2021 Snapshot
6 YE2021 Snapshot RESULTS DRIVERS • Strong tire reinforcement demand driving prices up USD-Based Revenue 37.2% • Kordsa volume growth above market growth Growth • Price increases as a result of ingredients price hikes (vs YE’20) • Doubled revenue generation from construction (9.0M$) • Volume growth
Slide 7: Highlights & Lowlights
HIGHLIGHTS & LOWLIGHTS KORD@O HIGHLIGHTS TIRE REINFORCEMENT DEMAND Growth trend expected to continue in 2H’21 RECOVERY PROCESS in COMPOSITE With increase of air travel, recovery process expected to start in 2H’22 GROWTH PLANS Lower net debt/EBITDA creates financial opportunities for potential acqu n
Slide 8: Market Dynamics / Tire
8 Market Dynamics / Tire Global Automotive Market (million units) Global Tire Market (million units) 74.6 84.2 93.2 99.7 1,654 1,722 1,798 1,863 88.7 75.4 1,701 1,504 3,5 3,2 63,0 65,4 3,3 2,7 61,2 56,2 59,6 2,5 11,6% 16,8 49,0 4,1% 8,7% 199,9 202,5 16,2 -15,9% 2,2 23,6% 16,3 199,0 10,0% 189,9 200,4
Slide 9: Market Drivers / Composite
9 Market Drivers / Composite Global Prepreg Market (‘000 USD) Global Carbon Fabric Market (‘000 USD) 1.401 1.316 4.998 1.185 1.234 1.173 6,6% 8,2% 4.565 1.100 5,2% 7,7% 4.218 3.764 4,0% 3.916 7,7% -32,8% 12,1% -21,5% -1,0% 3.359 2019 2020 2021E 2022F 2023F 2024F 2019 2020 2021E 2022F 2023F 2024F 14.
Slide 10: Segment Reporting Results
10 Segment Reporting Results Dec, 21 Revenue Split Dec, 20 Revenue Split By Region By Product By Region By Product Other; Other; Composite; 2% Composite; 1% 10% Asia; Asia; 15% 24% EMEA; 28% EMEA; 34% 32% SA; SA; 12% 12% TCF & TCF & NA; Yarn; NA; Yarn; 26% 88% 32% 84%
Slide 11: YE'21 Key Financials: Revenue
11 YE’21 Key Financials Revenue vs 2020 (M$) vs 2019 (M$) -%2 +%37 888 906 888 647 +%30 +%9 239 219 239 183 4Q'20 4Q'21 YE'20 YE'21 4Q'19 4Q'21 YE'19 YE'21 • Parallel volume in 4Q’21 ln accordance with 4Q’20 in tire reinforcement • %14 higher volume sales in 4Q’21 compared 4Q’19 in tire reinforcemen
Slide 12: YE'21 Key Financials: EBITDA
12 YE’21 Key Financials EBITDA vs 2020 (M$) vs 2019 (M$) +%4 +%67 137 132 137 82 +%19 +%11 27 32 28 32 4Q'20 4Q'21 YE'20 YE'21 4Q'19 4Q'21 YE'19 YE'21 • Lower margin in 4Q’21 due to the lag in reflecting RM cost to sales price • Higher EBITDA level in 4Q’20 compared to 2019 • 13.2% EBITDA margin is
Slide 13: YE'21 Key Financials: Net Income
13 YE’21 Key Financials Net Income vs 2020 (M$) vs 2019 (M$) +%349 +%44 96 96 67 +%270 +%96 26 26 21 13 7 4Q'20 4Q'21 YE'20 YE'21 4Q'19 4Q'21 YE'19 YE'21 • 55M$ from EBITDA impact • +5 M$ EBITDA level compared to 2019 • 15 M$ from Brazil tax-case and K-TR asset revaluation • 15 M$ from Brazil tax-ca
Slide 14: Global Footprint and Kordsa Market Position
14 Global Footprint NORTH AMERICA Kordsa Market Position 13% -22% vs. 2020 vs. 2019 EMEA #1 NY TCF producer #1 PET TCF producer Anaheim, CA İstanbul İzmit Quakertown, PA NA Santa Ana, CA Laurel Hill, NC San Marcos, CA Chattanooga, TN #1 NY TCF producer in US Thailand Indonesia SA Brazil Composite Br
Slide 15: Kordsa Income Statement YE'21
15 Kordsa Income Statement YE’21 USD Financials (MUSD) YE 2020 YE 2021 D 4Q 2020 4Q 2021 D Sales 647 888 37,2% 183 239 30,5% Gross Profit 115 195 70,1% 37 50 33,8% Gross Margin (%) 17,7% 21,9% 4 pts' 20,3% 20,8% 1 pts' OPEX (%) 11,3% 11,0% 0 pts' 11,4% 10,6% 0 pts' Operating Profit 55 149 172,6% 15
Slide 16: Well-Positioned for Strong Cash Generation
16 Well-Positioned for Strong Cash Generation Average Working Capital Turnover Net Debt / EBITDA -4.2pp 35,9% 34,8% 4,0 32,7% 3,3 32,2% 2,7 30,6% 2,3 2,2 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 Amount Avg. Int. Rates INVENTORIES UP 30% Y-O-Y Driven by strong demand in tire and rm
Slide 17: Inspired to Reinforce Life for a Better Today and Tomorrow
1 7 Passion for Business Responsibility for Excellence People Efficiency and improvements We commit to a in our own operations to non-discriminative, safe and Inspired to Reinforce Life create a positive impact in our value chain and to healthy working environment for all. accelarete low carbon for
Slide 18: Kordsa Sustainability Targets and Awards & Recognition
1 8 Kordsa Sustainability Targets Kordsa Awards & Recognition 2021 CDP Turkey Climate Change and Water Leader 2030 (A-Global List in the world for water) 30% Emission Reduction Ecovadis Gold Medal 2030 2030 Entered Istanbul Stock Exhance 50% water withdrawal 50% total waste reduction per unit reduct
Slide 19: Kordsa's Financial Policy: Guidance Realization
19 Kordsa's Financial Policy Our company guidance for financial REALIZATION year 2021 is as follows: TL-Basis Revenue Sales : 74% 50% - 55% 30% - 35% TL basis USD basis EBITDA: 112% USD-Basis EBITDA 85% - 95% 65% - 70% Sales : 37% TL basis USD basis EBITDA: 67%
Slide 20: Thank You
Thank You THE REINFORGER
Slide 21: Well-Positioned for Strong Cash Generation and Dividends
21 Well-Positioned for Strong Cash Generation and Dividends • Demonstrates value-based pricing model FX exposure • Ability to pass through raw material price volatility: (Revenue – raw material costs) tracked as a KPI by sales team 1% 6%4% • Conversion costs as a key metric for management KPIs (main
Slide 22: Balance Sheet
22 Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2020 YE 2021 D YE 2020 YE 2021 D Cash and Cash Equivalents 450 195 -255 61 15 -47 Account Receivables 1.091 2.566 1.475 149 193 44 Inventories 1.225 2.989 1.763 167 224 57 Other Current Assets 123 436 312 17 33 16 PPE & Intangibles 3.343
Slide 23: Cash Flow
23 Cash Flow TL Financials (MTL) YE 2020 YE 2021 D Cash Used in Operating Activities 902 486 -416 Net Income 150 856 705 Depreciation & Amortization 285 350 65 Change in Working Capital -71 -2.298 -2.227 Other Adjustments* 538 1.578 1.040 Cash Used in Investing Activities -208 -274 -66 Maintenance C
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