Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — Q1 2025 Earnings Presentation
29 slides from Kordsa Teknik Tekstil A.s's earnings presentation, May 2025
Slide 1: Investor Presentation May'25
Investor Presentation May’25 Kordsa.com
Slide 2: Highly successful reinforcer growing into an advanced materials company
Highly successful reinforcer growing into an advanced materials company 4 7 13 4,300+ 2 3 CONTINENTS COUNTRIES FACITILITIES EMPLOYEES R&D CENTERS TECHNICAL CENTERS
Slide 3: Successfully Building the Future of Reinforcement
Successfully Building the Future of Reinforcement Being a global Growth in Transformation to Advanced TCF player in independent Growth in Regions & Composite & Material Company Growth local basis player Value Added Products Construction Digital Kordsa 5.0 with JV 1973-1985 1986-2000 2001-2005 2006-2
Slide 4: Why invest in Kordsa
Why invest in Kordsa Strong hedge position to country risks Growth in composite reinforcement market & through 100% hard-currency revenue evolving to advanced materials company Strong cash Strong generation Protected customer base ESG through Global footprint position 4
Slide 5: Global leading position and trusted partner in tire and composite reinforcement
Reinforcing 1 out of every 3 automobile tires as well as 2 out of every 3 aircraft tires globally Global Leading Position Trusted Partner Tire Reinforcement #1 TireCord Fabric Producer Longstanding Strategic Partner Status with all Global Tire Players Agile production capabilities / demand fulfillme
Slide 6: Strong hedge position to country risks through 100% hard-currency revenue
Strong hedge position to country risks through 100% hard-currency revenue Domestic EUR-Basis 6% Natural Hedge to 23% FX/Türkiye Position Shipment Fx-Based -Based Revenue Revenue USD-Basis 77% International 94% 03 6
Slide 7: Operations / Financials
OPERATIONS FINANCIALS 7
Slide 8: We reinforce mobility through our tire reinforcement products
We reinforce mobility through our tire reinforcement products GROOVE 01 A tire is a highly complex composite with approx. 40 components RIB working under dynamic conditions enduring heat and motion 02 By weight: 350-450gr per tire CAP PLIES 03 By value => Approx 7-10% cost of a tire is Tire Cord Fab
Slide 9: We reinforce safety through our composite technologies
We reinforce safety through our composite technologies COMPOSITE PARTS Composites use in aerospace & automotive is increasing, due to improved material properties and weight savings over conventional materials «Lightweighting» is a major theme, driven by emission regulations as well as fuel- efficie
Slide 10: We reinforce urbanization through our construction solutions
We reinforce urbanization through our construction solutions REINFORCED CONCRETE STRUCTURES MAJOR APPLICATIONS Infrastructure projects (tunnels, runways, dams, bridges, metro tracks, highways) Mines 10
Slide 11: China continues to grow in the value chain and keep mature markets under pressure
11 China continues to grow in the value chain and keep mature markets under pressure Global Automotive Market excl. China (million Global Tire Market excl. China (million units) units) 63 65 56 62 60 61 3.5 3.5 1,130 1,033 1,042 1,061 1,086 1,110 2.9 3.0 3.3 2.8 62 60 60 3,2% 16.0 16.0 57 56 58 16.0
Slide 12: Aerospace recovery continues, but supply chain and strikes weigh on deliveries
12 Aerospace recovery continues, but supply chain and strikes weigh on deliveries Composite Prepreg Market (M$) Composite Textile Market (M$) 5,302 5,675 2,820 2,992 4,113 4,583 4,922 1,790 2,475 2,586 3,217 2,213 296 292 806 11% 286 8% 804 12% 7% 530 286 798 7% 511 6% 28% 286 793 7% 478 7% 489 2,7%
Slide 13: Our aim is to build balanced portfolio between tire and composite reinforcement
Our aim is to build balanced portfolio between tire and composite reinforcement Mar, 25 Revenue Split Mar, 24 Revenue Split Other Other Asia 3% 3% 17% Asia Composite Composite 20% 22% 21% EMEA EMEA 41% 38% SA By 9% By By SA By 10% Region Product Region Product TCF & Yarn TCF & Yarn NA NA 76% 75% 33%
Slide 14: Strong financial performance in evolving advanced materials company
Strong financial performance in evolving advanced materials company FINANCIALS OPERATIONS 14
Slide 15: Revenue and EBITDA
China continues to grow in the value chain Revenue (M$) REVENUES Tire : PT Indo Kordsa Flood Effect Price pressures from Asian competitors Composite : Slowdown in European automotive market 1,154 1,003 929 906 888 647 234 217 2019 2020 2021 2022 2023 2024 1Q'24 1Q'25 EBITDA (M$) EBITDA 14.5% 15.4% A
Slide 16: Cost improvement projects helping to keep profitability level (EBITDA Bridge)
16 Cost improvement projects helping to keep profitability level despite inflation-fx mismatch effects EBITDA Bridge (MUSD) 23.2 -10,4 1.8 2.6 -1,8 14.5 -2,9 -0,4 1.5 0,2 2.3 -1,6 1Q24 Adj. Tire Tire MFG FC Inflation/FX OPEX Inflation/FX FPDE Composite Indo Other 1Q25 Adj. EBITDA Volume Cont. Mismat
Slide 17: Focusing on improving working capital and net debt level
17 Focusing on improving working capital and net debt level Trade Working Capital (M$) Net Debt / Adjusted EBITDA* -80 M$ 5.8 296 302 5.4 -36 M$ 5.1 4.6 326 4.0 282 246 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 1Q'24 2Q'24 3Q'24 4Q'24** 1Q'25** Amount Avg. Int. Rates Net Debt (M$) M$ 31.12.2024 31.03.2025 % % -
Slide 18: Sustainability Approach
Sustainability Approach Our sustainability strategy has been created within the framework of our material issues and is in harmony with our business strategy. Our enablers through our sustainability journey are Technology and Digitalization. CDP Climate CDP Water CDP Supplier Change Program Engageme
Slide 19: Mapped Objectives to UN Development Goals
Mapped Objectives to UN Development Goals 2030 2027 2030 46.2% GHG Emission Critical raw material 25% reduction 2050 Reduction in Scope suppliers have SBTi Scope 3 Category 3 & 10 Net Zero 1&2 aligned target (Base Year 2021) (Base Year 2019) (Base Year 2021) 2030 2030 30% water SMR withdrawal reduct
Slide 20: Why invest in Kordsa
Why invest in Kordsa Strong hedge position to country risks Growth in composite reinforcement market & through 100% hard-currency revenue evolving to advanced materials company Strong cash Strong generation Protected customer base ESG through Global footprint position 20
Slide 21: Thank You
Thank You THE REINFORCER
Slide 22: Kordsa fabrics and prepregs offer cutting edge solutions for aerospace & automotive markets
Kordsa fabrics and prepregs offer cutting edge solutions for aerospace&automotive markets INTERMEDIATES RAW MATERIALS Weaving Prepreg Fibers: Value added products comprised of The sole supplier of Carbon Fiber - ceramic, carbon, aramid, glass for B787 - Dreamliner Aramide various industries such as
Slide 23: Kordsa fabrics are developed for specific requirements and custom made
Kordsa fabrics are developed for spesific requirements and custom made MANUFACTURING PROCESS RAW Polymerisation NY66 and Twisting Greige Chemical Dipped and Yarn PET HMLS and Fabric Treatment Fabric MATERIALS Spinning Yarns Weaving (dipping) Oil derivative Integrated production Chemicals and Polymer
Slide 24: Construction Value Chain
Construction Value Chain MANUFACTURING PROCESS RAW NY66 and Twisting Dipping Pucking Cutting MATERIALS PP Fibers Higher value Polypropylene added from and nylon 66 dipped fabric polymers Kordsa’s Kratos Fiber Reinforcement are applied in Superstructure & Infrastructure Solutions 24
Slide 25: Kordsa's Decarbonisation Strategy is aligned with 1.5°C pathway
Kordsa’s Decarbonisation Strategy is aligned with 1.5°C pathway, and leverages mainly on renewable energy and supplier engagement to reduce GHG emissions across the value chain Kordsa to be a leader in sustainability and achive mid-term and long-term GHG emission reduction targets Emission Reduction
Slide 26: We Reinforce Life with Sustainability
We Reinforce Life with Sustainability Tire Construction Composites Compounding Reinforcement Reinforcement ๏ Recycled Nylon ๏ UHT PET ๏ Water based phenolic ๏ Kratos Synthetic Fiber ๏ Sustainable formulations ๏ Recycled PET ๏ High Modulus NY honeycomb Reinforcement ๏ Bio based formulations ๏ Bio bas
Slide 27: Ongoing challenging externalities impact financial performance
Ongoing challenging externalities impact financial performance USD Financials (MUSD) 1Q’24 1Q’25 Δ 2Q'24 3Q'24 4Q'24 1Q'25 Sales 234 217 -7.2% 235 235 225 217 Gross Profit 40 30 -23.9% 32 32 16 30 Gross Margin (%) 17.0% 13.9% -3 pts' 13.8% 13.8% 7.4% 13.9% OPEX (%) 11.9% 12.5% 1 pts' 12.4% 11.9% 11.
Slide 28: Balance Sheet
Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2024 1Q 2025 Δ YE 2024 1Q 2025 Δ Cash and Cash Equivalents 4,257 4,777 520 121 126 6 Account Receivables 5,690 5,874 184 161 156 -6 Inventories 7,474 7,376 -98 212 195 -17 Other Current Assets 1,205 1,737 532 34 46 12 PPE & Intangibles 16,74
Slide 29: Hard Currency Revenue
29 Hard Currency Revenue Other Depreciation FX exposure 2% 10% 5% 1% Distribution & 4% 5% Packaging 23% 4% Costs Energy 1Q’25 Revenue 16% 7% (1Q’25) Expenses Expenses by (1Q’25) Nature 55% Raw Materials 72% 19% 77% Personel Expenses US $ TL EUR IDR BRL Baht US $ EUR • Hard currency revenues • Abilit
Kordsa Teknik Tekstil A.S. — Q1 2025 Earnings Presentation on 6ix