Kimteks Poliuretan Sanayi Ve Ticaret As · BIST:KMPUR
Kimteks Poliuretan Sanayi Ve Ticaret As — Q1 2023 Earnings Presentation
44 slides from Kimteks Poliuretan Sanayi Ve Ticaret As's earnings presentation, May 2023
Slide 1: 2023 1st Quarterly Business Results Investor Presentation
KİMTEKS POLİÜRETAN SANAYİ VE TİCARET A.Ş. and its SUBSIDIARIES 2023 1. Quarterly Business Results Investor Presentation May 2023
Slide 2: Cavidan Karaca, CEO & Vice Chairman
Cavidan Karaca CEO & Vice Chairman of the Board of Directors 2015 Kimpur - CEO and Vice Chairman of the Board of Directors 2014 Kimteks Kimya Tekstil Ürünleri A.Ş. - Consultant 2002 Innovis Ticaret ve Danışmanlık A.Ş. - General Manager 2001 Omsan Lojistik A.Ş. - Purchasing Director 1997 Arçelik A.Ş.
Slide 3: Overview
1 \ Overview
Slide 4: Why Kimpur?
WHY KİMPUR? OUR VISION To be one of the world's top 10 players in polyurethane systems with innovative products and extraordinary solutions ➢ Turkey's first domestic capital polyurethane systems manufacturer that blends "Advanced Technology" systems based on "Smart Business Model" with agile & lean
Slide 5: Kimpur in All Areas of Life
KIMPUR IN ALL AREAS OF LIFE SOLAR PANEL SYSTEM ROOF INSULATION (Spray Systems) ROCK WOOL / EPS ADHESIVE FRAME (Wood Imitation) SANDWICH PANEL (PUR/PIR) BED HEAD (Wood Imitation) OFFICE CHAIR VISCO PILLOW VISCO BED COOLING SYSTEMS CAR SEAT (HR Foam Systems) CEILING TILE (Semi-Rigid) GARAGE DOOR WATER
Slide 6: Our Global Activities
OUR GLOBAL ACTIVITIES Company Country Capital Share (%) Field of Activity Kimpur Russia Russia %100 Sales, warehousing & distribution service Kimpur Wholesale of plastics and rubber in Russia Kimplast Turkey %83 Kimpur primary form Europe Kimpur 25 kton capacity polyurethane production, Latvia %75 E
Slide 7: Numbers at a Glance
NUMBERS AT A GLANCE: 40 155 kton 65 kton 10 50+ 258 %31 600+ ANNUAL PRODUCTION DÜZCE VISION TO BE ONE EXPORT EMPLOYEE EXPORTS PRODUC EXPERIEN • 130 kton Gebze CAPACITY •INVESTMENT 50 kton PU OF THE 10 S TO (28 R&D) / TOTAL T CE • 25 kton Latvia • 10 kton EVA BIGGEST GLOBAL COUNTR TONNAGE DIVERSITY •
Slide 8: Supply Chain & Logistics Management
SUPPLY CHAIN & LOGISTICS MANAGEMENT ▪ Turkey's largest acquisition volume in the sector Kimpur Logistics Warehousing Network ▪ ~90% import rate in production inputs ▪ European and Far Eastern producers in raw material supply ▪ Proactive raw material forecasting & cost studies in line with SAP & MRP
Slide 9: Our Strategic Priorities
2 \ Our Strategic Priorities
Slide 10: Prominent Investment Elements
PROMINENT INVESTMENT ELEMENTS Reliable Solution Partnership R&D Center & Innovative Practices Leading the Industry Strong Domestic & Export Growth Strategy with Wide Product Range Environmental and Social Sustainability Sustainable Expansion Policies Strong Financial Performance
Slide 11: Reliable Solution Partnership
i. Reliable Solution Partnership
Slide 12: Reliable Solution Partnership
RELIABLE SOLUTION PARTNERSHIP Product Management Human Supply Chain Resources Management ❖ Brand Awareness ❖ Global and Agile Organizational ❖ Competitive Product Lead ❖ Customer Loyalty Structure Time ❖ Sectoral Diversity ❖ Wide Product Range ❖ Expert and Experienced R&D Team ❖ Strong Supplier Rela
Slide 13: R&D Center & Innovative Applications Leading the Industry
ii. R&D Center & Innovative Applications Leading the Industry
Slide 14: Pioneer in the Sector with Its R&D Center
PIONEER IN THE SECTOR WITH ITS R&D CENTER R&D Expenditures (mTL) Kimpur Turkey's Polyurethane R&D Power Among the 250 companies with the highest R&D expenditures Patents related to Science, Industry and Development of Raw Materials polyurethane system Technology for Soles, Slippers, Boots etc. and p
Slide 15: Wide Product Range, Strong Domestic & Export Growth Strategy
iii. With Wide Product Range Strong Domestic & Export Growth Strategy
Slide 16: Global Polyurethane Market
GLOBAL POLYURETHANE MARKET Global Polyurethane Market Volume Factors/Trends Affecting Global Market Volume ✓ Polyurethane has become an important part of many sectors in the world thanks to its versatile use ✓ Increasing demand for lightweight, durable and high- performance products in many areas fr
Slide 17: Polyurethane Market in Turkey
POLYURETHANE MARKET IN TURKEY DOMESTIC PU CAPACITY 2018 2019 2020 2021 2022 2023 T Rigid 215,490 215,420 207,110 216,210 223,980 231,100 Flexible 149,130 143,800 138,100 144,890 149,980 154,370 Elastomers 101,105 110,822 119,665 126,284 130,519 133,618 Coatings 62.590 63.290 62.200 64.709 66.561 68.
Slide 18: Strong Positioning in Different Sectors: 2023 1Q Sales Breakdown
STRONG POSITIONING IN DIFFERENT SECTORS WITH DIVERSIFIED REVENUES 2023 1Q SALES BREAKDOWN Sales (Thousand 2021 2022 22/21 % 2022 1Q 2023 1Q Difference % Dome Export Tons) 14% stic 1% Domestic 64.7 71.5 10,5% 17.7 24.6 39% 1% It 20.0 24.2 21,4% 6.6 6.8 4% 2% Rigid 33.6 34.0 1,0% 7.6 12.4 63% 1% 23% F
Slide 19: Kimpur Product Groups
KIMPUR PRODUCT GROUPS Sales Breakdown of Product Groups by Year, Quantity (%) 1,1% 1,1% 0,2% 0,5% 2,2% 3,0% 2,3% 1,6% 1,5% 1,7% 1,1% 1,5% 7,8% 5,5% 5,4% 3,9% 3,3% 6,8% 7,8% 16,6% 41,3% 36,8% 37,4% 31,3% 43,3% 46,4% 44,7% 43,7% 2020 2021 2022 2023 1Q Rigid It Raw Material Flexible Polyester Case Othe
Slide 20: Rigid Foam Systems (Rigid)
RIGID FOAM SYSTEMS (RIGID) ▪ Two-component rigid foam systems for insulation purposes for Rigid Foam Systems Sales Amount (Ton) insulation panel and White Goods sectors • The first component is a physical mixture of polyether polyols, catalyst, surfactant, water and/or blowing agents called 58.177 P
Slide 21: Shoe & Slipper Systems
SHOE & SLIPPER SYSTEMS ▪ Expanded microcellular foams in both ester and ether form Sales Quantity of Shoe Systems (Ton) for all types of footwear soles, from occupational safety to sports and everyday products 46.011 ▪ KIMfoot® are 3-component Polyester systems: • First component Polyester Polyol an
Slide 22: Flexible Foam Systems
FLEXIBLE FOAM SYSTEMS Flexible Foam Systems Sales Amount (Ton) ▪ MDI based KIMflex® Flexible Foam Systems produced by Kimpur; • HR foam systems, • Viscoelastic systems, • Integral systems 9.150 • They are classified as filter systems. ▪ Systems for flexible foam and integral used in the transport in
Slide 23: Special Products
SPECIAL PRODUCTS Special Products Sales Amount (Tons) ▪ Expanded foams and non-foamy applications in expanded foams and non-foam structures. ▪ Reaction Injection Moulding (RIM), Micro- Reaction Injection 4.656 cellular Structural Foam RIM, Molding (RIM), Micro-cellular Structural Foam RIM, SRIM (Str
Slide 24: Polyester Polyols
POLYESTER POLYOLS Sales Amount of Polyester Polyols (Tonnes) 4.274 ▪ It manufactures KIMpol® Polyester Polyols consisting of multifunctional combinations of carboxylic acids and 3.179 polyhydric alcohols with various functionalities to offer the best solutions to industries such as the footwear indu
Slide 25: Raw Materials
RAW MATERIALS ® Raw Material Sales Amount (Ton) 8.159 ▪ The raw materials supplied by Kimpur are collected under Kimraw® product group and used in many different fields such as plasticisers, 6.905 adhesives, construction chemicals and paints, especially polyurethane 6.009 systems. 5.874 2.399 2020 2
Slide 26: Strong Export Growth Strategy (50+ Countries)
STRONG EXPORT GROWTH STRATEGY (50+ COUNTRIES)
Slide 27: Strong Export Growth Strategy
STRONG EXPORT GROWTH STRATEGY 2022 2023 Share of Exports in Total Sales (tons %) COUNTRY GROUPS (tons) 2021 2021 % 2022 2022 % 2022 1Q 2023 1Q 60,0% 1Q % 1Q % 50,0% CIS Countries 3.250 13,9% 10.870 32,8% 1.125 17,1% 3.062 28,4% African Countries 6.208 26,5% 6.536 19,7% 1.939 29,5% 1.801 16,7% 40,0%
Slide 28: Environmental & Social Sustainability
iv. Environmental & Social Sustainability
Slide 29: Sustainability Future with Kimpur
Investment Elements SUSTAINABILITY FUTURE WITH KIMPUR Environmental and Social Sustainability For a Sustainable Future We Create Values! OUR JOURNEY OUR JOURNEY OUR JOURNEY OF ADDING OF ADDING VALUE At Kimpur, we believe that sustainable growth is not OF ADDING VALUE VALUE TO OUR LIFE TO OUR JOB pos
Slide 30: Sustainability Future with Kimpur: Corporate Governance
Investment SUSTAINABILITY FUTURE WITH KIMPUR Elements 1. Audit Committee Corporate Governance Structure •To monitor and evaluate whether the internal 2. Ethics and Compliance Committee processes for risk management are working • To conduct an effectiveethics and compliance effectively program Kimpur
Slide 31: Our Commitments and International Standards
Investment SUSTAINABILITY FUTURE WITH KIMPUR Elements Our Commitments International Standards As Kimpur, we aim to carry out activities that benefit the environment and society in all areas we operate. For this purpose, we carry out our work in compliance with certain quality standards. As a signato
Slide 32: Completed Projects
Investment COMPLETED PROJECTS Elements ➢ 11.6% in 2020 - 7.1% in 2021 Energy Savings ➢ 11.6% in 2020 - 7.1% in 2021 Energy Savings ➢ Target of approximately 20% clean energy and 200-250 tons/year carbon emission reduction with the SPP investment ➢ Business Plastics Initiative (IPG) Commitments ➢ Car
Slide 33: Sustainable Expansion / Düzce Investment
SUSTAINABLE EXPANSION / DÜZCE INVESTMENT March 2022: Production factory Construction Start Date investment on 17.015m2 land in Gümüşova OSB End of April 2023: Construction Completion Date USD 15 million May 2023: investment size Kimpur Duzce Factory Phase 1 Production Start ▪ Investment An additiona
Slide 34: Strong Financial Performance
v. Strong Financial Performance (2023 Q1 - Critical Financial Indicators)
Slide 35: Zafer Demirel, CFO
Zafer Demirel CFO 2022 Kimpur – CFO 2018 Anadolu Isuzu – Head of Finance, Reporting & IR 2015 Sütaş - Financial Control & Business Development 2013 Anadolu Efes - Financial Reporting & Budgeting 2009 Borusan Holding - Financial Control & Reporting 2006 Deloitte - Audit Middle East Technical Universi
Slide 36: KMPUR's Successful Progress After IPO
KMPUR's Successful Progress After IPO April 2022 August 2022 November 2022 December 2022 ➢ Yıldız Pazar: ➢ Corporate Governance ➢ BIST 100: ➢ Dividend Index: • 3rd largest IPO of 2022 (CG) Index: • Kimpur became one of the 100 • Kimpur was included in the largest stocks index with 957mTL • Kimpur in
Slide 37: 2023: Increased Exports & Stable Growth
2023: INCREASED EXPORTS & STABLE GROWTH Net Sales (Million TL) CAGR: %128 4.890,0 1.594,1 +%65 2.172,7 552.5 1.618,6 3.295,9 938.8 981.1 509 292.6 1.620,2 353 1.110 646.1 628 2020 2021 2022 2022 2023 Export* 1Q 1Q Domestic Sales Total * Registered exports and exports to free zones have been
Slide 38: 2023: Growth in Operational Profitability
2023: GROWTH IN OPERATIONAL PROFITABILITY Gross Profit (Million TL) EBITDA (Million TL) 18,0% 18,5% 14,0% 16,4% 291.2 226.8 160.9 181.5 2022 2023 2022 2023 1Q 1Q 1Q 1Q Net Profit (Million TL) 17,8% '22 Q1 vs '23 Q1 Net Profit: 9,3% ➢ Operational FX impact: -56mTL ➢ Deferred tax income impact: -21mTL
Slide 39: Strict Balance Sheet Management & Healthy Financial Indebtedness Ratios
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS Net Financial Debt (Million TL) Net Business Capital (Million TL) 1.19 0.89 1.12 0.81 0.77 904 48,1% 791 795 878 45,5% 710 759 805 40,5% 665 707 34,5% 50.0 581 31,4% 1.542 1.627 1.538 1.909 1.308 2022 Mar* 2022 Jun* Sep 2022* 20
Slide 40: 2023 1st Quarter Highlights
▪ Strong Q1 net revenue growth 2023 1. ▪ 2022 Stronger gross profit compared to Q4 & main activity Quarter profit and net income (Net Profit %: 22 Q4: 4.3 vs 23 Q1: 9.3) Highlights ▪ Strong balance sheet ratios 1.619 billion TL Net Strong Net Revenue growth of +65% vs 22 Q1: 981 Revenue mTL %18 2022
Slide 41: 2023 1Q: Strong Profitability & Balance Sheet Ratios
2023 1Ç: STRONG PROFITABILITY & BALANCE SHEET RATIOS 1,619 mTL Net Sales, +65 1,110 mTL Domestic Sales, +77 509 mTL Exports*, +44 vs 2022 vs 2022 vs 2022 • Domestic: +77 • Wide customer portfolio in • Export to 52 countries • Exports*: +44 6 different sectors 227 mTL EBITDA, +25 291 mTL Gross Profit
Slide 42: Financial Priorities
FINANCIAL FINANCIALPRIORITIES PRIORITIES ✓ Sustainable profitability growth ✓ Strict balance sheet & business capital management ✓ Positive Free Cash Flow Priority ✓ Proactive currency risk management ✓ Effective financial debt management ✓ Maximum dividend yield
Slide 43: Financial Priorities: 2023 Prospects & Opportunities
FINANCIAL PRIORITIES 2023 Prospects & Opportunities ✓ Impact of the European energy crisis ✓ Differences in Europe - Far East raw material prices ✓ Increase in demand due to container production after the earthquake ✓ Russian market - opportunities ✓ Newly commissioned R&D projects ✓ New products to
Slide 44: info@kimpur.com / www.kimpur.com
CEO: Cavidan Karaca cavidan.karaca@kimpur.com CFO: Zafer Demirel zafer.demirel@kimpur.com IR: Damla Mermeroglu damla.mermeroglu@kimpur.com investorrelations@kimpur.com info@kimpur.com / www.kimpur.com Central Office Factory Gaziantep Branch Emniyet Evleri Mah. Eski Büyükdere Cad. Gebze Plastikçiler
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