Kimteks Poliuretan Sanayi Ve Ticaret As · BIST:KMPUR
Kimteks Poliuretan Sanayi Ve Ticaret As — H1 2024 Earnings Presentation
46 slides from Kimteks Poliuretan Sanayi Ve Ticaret As's earnings presentation, September 2024
Slide 1: Kimteks Polyurethane System House 2024 1st Half Business Results
KİMTEKS POLYURETHANE SYSTEM HOUSE EXTRAORDINARY SOLUTIONS KİMTEKS POLİÜRETAN SANAYİ VE TİCARET A.Ş. AND AND AFFILIATES 2024 1ST HALF BUSINESS RESULTS INVESTOR PRESENTATION SEPTEMBER 2024
Slide 2: Kimpur: Over 40 Years of Success
KİMPUR: OVER 40 YEARS OF SUCCESS Kimpur Public Offering Commissioning of Kimpur Europe R&D Center 72 kT Commissioning of Rooftop SPP of Certificate Sales Volume Gebze Production Facility Start of Flexible Establishment of Transition to Gebze Polyurethane Collaborations with 6 Sigma Excellence Model
Slide 3: Gebze, Europe and Düzce Production Facilities, Head Office
Gebze Production Facility Europe Production Facility Düzce Production Facility Head Office
Slide 4: Extraordinary Solutions in Every Area of Life
EXTRAORDINARY SOLUTIONS IN EVERY AREA OF LIFE SOLAR PANEL SYSTEM Footwear Systems ROOF INSULATION (Spray Systems) ROCK WOOL / EPS ADHESIVE FRAME (Wood Imitation) Rigid Foam Systems BED HEADBOARD (Wood Imitation) SANDWICH PANEL (PUR/PIR) VISCO PILLOW OFFICE ARMCHAIR VISCO BED Flexible Foam Systems CO
Slide 5: Figures at a Glance
FIGURES AT A GLANCE 40+ 281 kton +85 kton 10 50+ 322 32% 600+ PRODUCTION CAPACITY WITH A CAPACITY OF 281 kton IN TOTAL, THE VISION OF YEARS •141 kton Gebze COLLABORATION WITH RAVAGO COUNTRIES OF EMPLOYEES EXPORT / PRODUCT BEING ONE OF THE BIGGEST DIVERSITY OF PETROKİMYA A.Ş. EXPORT (32 R&D) TOTAL TO
Slide 6: Highlighted Investment Elements
HIGHLIGHTED INVESTMENT ELEMENTS R&D Center and Innovative Strong Domestic Reliable Solution Partnership Applications Growth Strategy with Wide Product Guiding the Sector Range Our Strategic Projects & Sustainable Environmental and Social Sustainability Expansion and Export Policies Strong Financial
Slide 7: i. Reliable Solution Partnership
i. Reliable Solution Partnership
Slide 8: Kimpur Strategy House
KİMPUR STRATEGY HOUSE To be a company followed in the world with innovative and extraordinary solutions in polyurethane systems Our Priority Topics Sustainable Sustainable Product Climate Crisis and Innovation and Supply Chain Employee Growth Management Carbon Management Technology Management Rights
Slide 9: Our Highlighted Corporate Features
OUR HIGHLIGHTED CORPORATE FEATURES Türkiye’s 188th Largest Company 2 Production Facilities in Türkiye, 1 in Europe Polyurethane Sector Leader of Türkiye Offices in Germany, America, England, Malta and Russia Global Export Record Holder in Its Sector Profitable Export to More than 50 Coun
Slide 10: ii. R&D Center and Innovative Applications Guiding the Sector
ii. R&D Center and Innovative Applications Guiding the Sector
Slide 11: Kimpur R&D Center
KİMPUR R&D CENTER Responding to consumer needs with science, our R&D team supports Kimpur’s innovation projects. Kimpur R&D Center Project is supported by the Ministry of Science, Industry and Technology. R&D 250 250 COMPANIES OF R&D INNOVATIVE INNOVATIVE TÜRKİYE INNOVATIVE SIMULATION APPLICATIONS T
Slide 12: Kimpur R&D Center: Türkiye's Polyurethane R&D Power
KİMPUR R&D CENTER Kimpur Türkiye’s Polyurethane R&D Power 19 Registered Trademarks Participation in European Union projects on Bio, Recycling Among Türkiye’s 250 Companies with the Highest R&D Expenditures and Sustainability with companies and universities leading in their fields SÜRE (Sustainable U
Slide 13: iii. Strong Domestic & Export Growth Strategy with Wide Product Range
iii. Strong Domestic & Export Growth Strategy with Wide Product Range
Slide 14: Global Polyurethane Market
GLOBAL POLYURETHANE MARKET Global Polyurethane Market Volume Factors/Trends Affecting Global Market Volume Polyurethane’s becoming an important part of many sectors in the world thanks to its versatile use Increase of demand for light, durable and high-performance products in many fields from the
Slide 15: Türkiye Polyurethane Market
GLOBAL POLYURETHANE MARKET Factors/Trends Affecting Türkiye Market Volume Türkiye Polyurethane Market The rigid product group having the largest volume shows a significant increase in 2023 and 2024. The main reason for this is interpreted as the increase in the building and construction sector as a
Slide 16: Strong Export
STRONG EXPORT 2024 6M DISTRIBUTION OF SALES Sales (Thousand Tons) 2022 2023 2023 6M 2024 6M 24/23 6M Difference % Domestic Exports Domestic 71.5 103.2 52.3 49.3 -5.7% Raw Material Raw Material Footwear 24.2 25.4 12.8 11.0 -14.0% Other Other 8% 4% Rigid 34.0 54.2 29.6 28.6 -3.2% 3% 0% Polyester Footw
Slide 17: Kimpur Product Groups
KİMPUR PRODUCT GROUPS Sales Breakdown of Product Groups by Years, Quantitative (%) 0,8% 1,8% 1,1% 0,2% 2,2% 1,1% 3,0% 1,5% 2,9% 1,7% 2,0% 5,5% 5,4% 4,6% 4,6% 6,8% 5,0% 7,8% 12,5% 6,7% 36,8% 24,7% 37,4% 28,4% 55,7% 46,4% 44,7% 49,1% 2021 2022 2023 2024 1Y Rigid Footwear Raw Material Flexible Polyeste
Slide 18: Rigid Foam Systems
RIGID FOAM SYSTEMS Rigid Foam Systems Sales Quantity (Tons) Rigid Foam Systems 69,665 Double-component rigid foam systems for insulation purposes for the insulation panel and White Goods sectors 46,784 40,923 40,026 • The first component is the physical mixtures of 36,486 polyether polyols, cataly
Slide 19: Shoes and Slipper Systems
SHOES AND SLIPPER SYSTEMS Footwear Systems Sales Quantity (Tons) Footwear Systems 39,122 40,305 32,429 Expanded micro-cellular foams in both ester and ether form for all types of shoe soles, from occupational safety to sports and casual products 21,200 17,721 KIMfoot® are 3-component Polyester s
Slide 20: Flexible Foam Systems
FLEXIBLE FOAM SYSTEMS Flexible Foam Systems Sales Quantity (Tons) Flexible Foam Systems 6,568 MDI-based KIMflex® Flexible Foam Systems produced by 5,660 Kimpur are classified as: 4,890 HR foam systems, Viscoelastic systems, 3,570 Integral systems, 3,011 Filter systems. Systems for produc
Slide 21: Polyester Polyols
POLYESTER POLYOLS Polyester Polyols Sales Quantity (Tons) Polyester Polyols It produces KIMpol® Polyester Polyols, which consist of 4,079 multifunctional carboxylic acid and polyhydric alcohol combinations 3,179 3,276 with various functions, to offer the best solutions to industries such as the fo
Slide 22: Special Products
SPECIAL PRODUCTS Special Products Sales Quantity (Tons) Special Products 2,398 Polyurethane Systems for elastomeric applications in expanded foams and non-foamy structures. Reaction Injection Molding (RIM), Micro-cellular Structural Foam RIM, 1,593 SRIM (Structural RIM Composites) and low-densit
Slide 23: Raw Materials
RAW MATERIALS Raw Material Sales Quantity (Tons) Raw Materials 17,810 The raw materials supplied by Kimpur are collected under the KIMraw® product group and are used in many different fields such as plasticizers, adhesives, construction chemicals and paint, especially polyurethane systems. 8,159 8
Slide 24: iv. Our Strategic Projects & Sustainable Expansion and Export Policies
iv. Our Strategic Projects & Sustainable Expansion and Export Policies
Slide 25: Sustainable Expansion / Düzce Investment
SUSTAINABLE EXPANSION / DÜZCE INVESTMENT March 2022 Construction Production factory investment on a started. land of 17,015 m2 April 2023 Construction land in Gümüşova OIZ completed. July 2023 First phase Investment size of 15 commissioned. million USD Kimpur Düzce Factory Investment Kimpur Düzce F
Slide 26: Highlights in 2024 - Sustainable Expansion
HIGHLIGHTS IN 2024 - SUSTAINABLE EXPANSION KİMPUR – RAVAGO PETROKİMYA A.Ş. POLYURETHANE UNIT INVESTMENT Project Strategic Financial Competitive Roadmap Objectives Opportunities Advantage July 2024 Production Sustainable Service to capacity financial growth many customers Relocation opportuni
Slide 27: Strong Export Strategy (Export to 50+ Countries)
STRONG EXPORT STRATEGY (EXPORT TO 50+ COUNTRIES) Production Facility Head Office Gebze Production Facility EXPORT TO MORE THAN Düzce Facility Production 50 COUNTRIES ON 5 Gaziantep CONTINENTS Warehouse
Slide 28: Strong Export Strategy
STRONG EXPORT STRATEGY COUNTRY GROUPS 2022 2022 % 2023 2023 % 2023 6M 2023 6M 2024 6M 2024 6M Share of Exports in Total Sales (tons) % % (ton %) CIS Countries 10,870 32.8% 9,292 23.9% 5,632 28.7% 4,602 20.1% African Countries 6,536 19.7% 9,201 23.7% 4,980 25.4% 6,927 30.3% Middle East and Gulf 10,12
Slide 29: v. Environmental & Social Sustainability
v. Environmental & Social Sustainability
Slide 30: Transformation for a Sustainable Future
TRANSFORMATION FOR A SUSTAINABLE FUTURE TRANSFORMATION FOR TRANSFORMATION FOR TRANSFORMATION FOR OUR LIFE OUR BUSINESS OUR NATURE Energy Saving Kimpur Code of Ethical Smart Business Model Carbon Management Business Conduct Digital Transformation and Waste Management Occupational Health
Slide 31: Our Sustainability Strategy
OUR SUSTAINABILITY STRATEGY As Kimpur, we are aware of our environmental, social and economic Our Material Topics responsibilities for a sustainable future and we carry on our efforts to fulfill these responsibilities with determination. In 2023, we moved forward with the perspective of ‘Transformat
Slide 32: Our Sustainability Targets - I
OUR SUSTAINABILITY TARGETS - I By 2030, reducing our Although our production increased Calculation of product life In 2024, product life cycle energy carbon cycle of all our systems by 28% in 2023, carbon footprint per analyses were completed. emissions by unit remained the same. 33% Polyester Polyo
Slide 33: Our Sustainability Targets - I
OUR SUSTAINABILITY TARGETS - I According to DMI Methodology, By 2024, increasing the total sales by In 2023, our sales volume increased by Increase of the budget for digital Measurement of the Digital Maturity level was 10% 36% transformation efforts started. in quantity compared to 2022. (Base Year
Slide 34: 2024 Expectations & Opportunities
2024 EXPECTATIONS & OPPORTUNITIES Global manufacturers’ switching from system production to raw material provider position, developing opportunities in parallel to this Successful representation at the 2024 UTECH Europe fair, important connections; Kimpur in the same league with global players!
Slide 35: 2024 Expectations & Opportunity Predictions: First 6 Months Deviations
OUR 2024 EXPECTATIONS & OPPORTUNITY PREDICTIONS 2024 FIRST 6 MONTHS TARGET DEVIATIONS & REASONS Domestic market/footwear sector shrinking beyond our expectations Decrease of forward purchases - negative impact on gross profit In target markets, cost of entry into market and additional costs of
Slide 36: vi. Financial Performance
vi. Financial Performance (2024 6M - Critical Financial Indicators)
Slide 37: 2024: Increasing Exports
2024: INCREASING EXPORTS TAS 29 Before Inflation Accounting TAS 29 After Inflation Accounting 6,526.7 4,973.7 5,938.2 963.1 1,478.2 1,384.2 3,600.1 527.6 5,563.6 3,589.5 4,460.0 3,072.5 2023 6M 2024 6M 2023 6M (TAS 29) 2024 6M (TAS 29) Domestic Sales Exports Total Domestic Sales Exports Total * Expo
Slide 38: 2024 6M Profitability Values (TAS 29 Adjusted)
2024 6A PROFITABILITY VALUES (Results Adjusted According to Inflation Accounting (TAS 29)) Gross Profit (Million TL) EBITDA (Million TL) 18.8% 18.2% 10.6% 13.9% 1,225.8 1,186.9 821.0 630.8 2023 2024 2023 2024 Net Profit (Million TL) 10.9% -5.5% 710.1 2023 2024 -328.9
Slide 39: 2024 6M Profitability Values (Before Inflation Accounting)
2024 6A PROFITABILITY VALUES (Results Before Inflation Accounting (TAS 29)) Gross Profit (Million TL) EBITDA (Million TL) 19.9% 20.3% 11.1% 15.7% 731.7 775.9 715.9 551.1 2023 2024 2023 2024 Net Profit (Million TL) 16.6% -2.3% 597.8 -114.7 2023 2024
Slide 40: 2024 6M: Breakdown of Monetary Loss due to Inflation Accounting
2024 6M: Breakdown of Monetary Loss due to Inflation Accounting 0 -613,800 -289,466 308,273 16,061 Start Equity Impact Impact of Assets Income Statement Monetary Loss Indexing
Slide 41: 2024 Q2: Net Loss Breakdown
2024 Q2: Net Loss Breakdown 2024 Q2 Net Profit Breakdown 394,007 (thousand TL) -71,458 -34,446 -111,521 -478,547 0 -441,246 -150,812 Q2 Currency Impact: - 217mTL 11,531 Q2 Gross Open Forward Closed Currench Q2 Inflation Q2 Financing Other Q2 Net Loss Profit Transactions Forward Hedged Deposit Moneta
Slide 42: Strict Balance Sheet Management & Healthy Financial Indebtedness Ratios
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS (Results Adjusted According to Inflation Accounting (TAS 29)) Net Financial Debts (Million TL) Net Operating Capital (Million TL) 2, 2,239 1.41 1,721 24.4% 25.5% 1,589 0.43 3,238 2,595 742 2023 2024 June 2023 2024 Q2 Net F. Debt
Slide 43: Strict Balance Sheet Management (Before Inflation Accounting)
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL KİMPUR R&D CENTER INDEBTEDNESS RATIOS (Results Before Inflation Accounting (TAS 29)) Net Financial Debts (Million TL) Net Operating Capital (Million TL) 2,239 1.84 31.2% 33.8% 0.57 1,382 1,217 3,214 787 2,538 2023 2024 June 2023 2024 Q2 Net Operati
Slide 44: Financial Priorities
FINANCIAL PRIORITIES Sustainable profitability growth Strict balance sheet & operating capital management Positive Free Cash Flow priority Proactive exchange rate risk management Effective financial debt management Maximum dividend yield
Slide 45: Reservation
RESERVATION Pursuant to the decision of the Capital Markets Board (CMB) no. 81/1820 dated 28.12.2023, issuers and capital market institutions subject to the financial reporting regulations of the CMB, which implements Turkish Accounting/Financial Reporting Standards, it was decided to apply inflatio
Slide 46: Contact Details
CEO: Cavidan Karaca cavidan.karaca@kimpur.com CFO: Zafer Demirel zafer.demirel@kimpur.com IR: Damla Mermeroglu damla.mermeroglu@kimpur.com investorrelations@kimpur.com Düzce Factory Kimpur Europe Kimpur UK Head Office Gebze Factory OSB, Yakabaşı Mevki, 1. Cadde Brīvības iela 103, Liepāja, LV-3
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