Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — FY2016 Earnings Presentation
17 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Feb 21, 2017
Slide 1: 2016 Year End / Earnings Release
Strictly confidential 2016 Year End / Earnings Release Feb 21, 2017
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Kordsa Global Endüstriyel İplik ve Kord Bezi Sanayi ve Ticaret Anonim Şirketi (the “Company”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is m
Slide 3: Market Dynamics
Market Dynamics Global Automotive Market Global LV Assembly – M Units / Year • APAC (Incl. China, India, Thailand, Vietnam) still has the 2016-2021E CAGR: 3,4% strongest growth with CAGR 5.5% 104 108 110 93 95 100 • Automotive is expected to grow more than others in China, India, Mexico and Thailand
Slide 4: Market Dynamics
Market Dynamics Tire Reinforcement Market (NY6.6) Nylon 6.6 kton 600 • 2017: Above 90 % capacity utilisation rates, good demand 550 500 • Cap ply demand grows with passenger & light vechicle tire 450 demand 2016-2021 CAGR: +2.5% 400 • Still the preferred product in tire performance compared to 350 P
Slide 5: Must Win Battles
Must Win Battles 1. Operating Excellence a. Continuing Cost Reduction Programs • Raw material diversification and improvement for best yields • Creep capex driving energy & labor efficient production • TPM (total productive maintenence) initiatives at all locations b. Lean Kordsa • High capacity uti
Slide 6: Segmental Progress
Segmental Progress Global Players Regional Players Emerging Players Others 70% 66% 60% 60% 57% 50% 50% 40% 31% 30% 26% 22% 20% 17% 13% 12% 12% 11% 10% 6% 6% 6% 5% 0% 2013 2014 2015 2016 6
Slide 7: Regional Revenue Split Progress
Regional Revenue Split Progress 2014 2015 2016 38.6% 36.1% 36.0% 29.5% 30.6% 28.0% 22.3% 17.4% 18.4% 13.7% 14.5% 15.0% EMEA APAC NA SA 7
Slide 8: Revenue Split Progress by Products
2016 Revenue Split Progress by Products 100% 7% 8% 5% 90% 18% 19% 80% 23% 70% 60% 50% 40% 71% 74% 76% 30% 20% 10% 0% 2014 2015 2016 TCF NY Yarn Other 8
Slide 9: Strong Focus on R&D
Strong Focus on R&D 140 In MM$ 14.0% 11.7% 120 12.0% 100 10.0% 80 7.7% 8.0% 6.6% 60 5.2% 120 6.0% 40 3.4% 4.0% 52 20 1.2% 41 42 2.0% 28 10 0 0.0% 2012 2013 2014 2015 2016 2021 Revenue From New Products (US$m) % of Total Rev. • Incl. Replacement products and incremental new products • The products wh
Slide 10: 2016 - Key Financials
2016 - Key Financials In MMTL 2015 YE 2016 YE Change Net Sales 1,735 1,908 10% Gross Profit 315 397 26% Gross Profit % 18.2% 20.8% 3 pts Operating Profit 171 240 41% Operating Profit % 10% 13% 3 pts EBITDA* 242 288 19% EBITDA* % 14.0% 15.1% 1 pts Net Income 99 143 44% *EBITDA Calculation = Operating
Slide 11: 2016 - Balanced Sheet (Selected Items)
2016 - Balanced Sheet (Selected Items) In MMTL Dec 31, 2015 Dec 31, 2016 Change Cash and Cash Equivalents 18 39 (21) Account Receivable 297 372 (75) Other Current Assets 109 114 (5) Inventories 425 537 (113) Accounts Payable (172) (284) 112 Oth. Curr. Liab. (Excl. Borrowings) (50) (71) 21 WCAP Turno
Slide 12: 2016 - Free Cash Flow
2016 - Free Cash Flow Dec 31, Dec 31, In MMTL Change 2015 2016 EBIT*(1-t) 142 204 62 Depreciation and Amortization 81 79 1 Change in Working Capital (23) (124) (102) Cash Used in Investing Activities (77) (134) (54) Free Cash Flow** 124 26 (98) * FCF: EBIT(1-Tax Rate) + Depreciation & Amortization -
Slide 13: 2016 - Dividend Distribution
2016 - Dividend Distribution* In MMTL 80 76 70 68 61 60 50 40 35 32 30 20 10 - - 2011 2012 2013 2014 2015 2016 * Kordsa distributes all the distributable income subject to Gen Assembly approval. Basis of distribution is the lower of the Turkish solo tax books or consolidated TFRS net income. 13
Slide 14: 2016 - Operating Profit Bridge
2016 - Operating Profit Bridge 14
Slide 15: APPENDIX
APPENDIX kKORDOD |r IE REINFORCER 15
Slide 16: RM Price Drivers
50 0 100 200 250 150 Jan-14 Mar-14 May-14 Jul-14 Source: Company Estimates Sep-14 Nov-14 Jan-15 Mar-15 RM Price Drivers May-15 Jul-15 BZ Sep-15 Nov-15 BD Jan-16 PP Mar-16 NY Material Trend May-16 OIL Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Forecast Sep-17 Nov-17 16
Slide 17: Polyester Raw Material Trend
50 80 90 70 80 90 60 70 50 60 100 110 120 100 110 Jan-14 Jan-14 Feb-14 Feb-14 Mar-14 Mar-14 Apr-14 Apr-14 May-14 May-14 Jun-14 Jun-14 Jul-14 Jul-14 Source: Company Estimates Source: Company Estimates Aug-14 Aug-14 Sep-14 Sep-14 Oct-14 Oct-14 Nov-14 Nov-14 Dec-14 Dec-14 Jan-15 Jan-15 Feb-15 Feb-15 RM
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