Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — H1 2019 Earnings Presentation
22 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Aug 6, 2019
Slide 1: 1H 2019 – Earnings Release
1H 2019 – Earnings Release August 6, 2019
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document The Company does not undertake any obligation, and have been compiled by KORDSA Teknik Tekstil Anonim disclaims any duty to update or revise any forward Şirketi (the “Company”) from sources believed to be reliable looking statements,
Slide 3: Agenda
Agenda 1 Global Footprint 1 2 1H 2019 Highlight 1 3 Market Dynamics 4 RM Price Drivers 5 Segment Reporting 6 New Products 7 Update on 1H 2019 Results 8 Dividend Distribution 9 Operating Bridge 10 Guidance Confidential 3
Slide 4: Global Footprint
Global Footprint 852 patent application 4 continents ~4,500 2 R&D 184 patents 12 facilities* employees Centers 186 inventions WE REINFORCE LIFE * Axiom Materials Acquisition LLC included Confidential 4
Slide 5: 1H 2019 Highlights
1H 2019 Highlights TL Financials (MTL) USD Financials (MUSD) 1H 2018 1H 2019 D 1H 2018 1H 2019 D Sales 1,538 2,586 68.1% 377 461 22.4% EBITDA* 263 407 54.9% 64 73 12.8% EBITDA* Margin (%) 17.1% 15.8% - 130 bp 17.1% 15.8% - 130 bp Our company guidance for financial year 2019 is as follows: Revenue
Slide 6: Axiom Materials Acquisition LLC
Axiom Materials Acquisition LLC General Products Financials • Axiom is a leading developer and • Prepregs, woven and unidirectional and • Axiom has grown nearly %15-20 manufacturer of proprietary advanced other advanced composite materials, annually over the historical period, composite materials •
Slide 7: Market Dynamics
Market Dynamics Glo b al A u t o mo tiv e M ark e t Global LV Assembly – M Units / Year APAC ex. China China EMEA North America South America 2019 Expectations CAGR‘18-’22: 2.4% • AP Exc. China: +2.4% Highest growing region 3.4 3.5 3.7 3.9 because of slowing other regions 3.4 17.6 16.9 17.0 16.9 17.
Slide 8: Market Dynamics
Market Dynamics T ire R e in f o rc e me nt M ark e t ( N Y 6 . 6) Supply Demand CAGR Demand ‘18-’21 : 1.5% 508.0 Nylon 6.6 481.0 479.0 492.0 446.0 366.0 371.0 377.0 383.0 357.0 • Utilization rates lower compared to previous years • Engineering plastics is affected by Automotive markets’ slow down •
Slide 9: RM Price Drivers
RM Price Drivers N Y R aw M at e ri al T re n d ( I n d e x e d ) Benzene Propylene Butadiene Crude Oil Forecast Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Confidential 9
Slide 10: RM Price Drivers
RM Price Drivers P ET F e e d s t ock A s i a 120 MEG Asia Contract PX Asia Contract PTA Asia Contract Crude Oil Dubai 110 100 90 80 70 60 50 40 30 20 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-18 Nov-18 Apr-19 Sep-19 Feb-20 Jul-20 Dec-20 Source :
Slide 11: Capitalize on Global Footprint and Entrenched Supplier Status - Segmental Progress
Capitalize on Global Footprint and Entrenched Supplier Status with All Key Tire Manufacturers - Segmental Progress Global Players Regional Players Emerging Players Others 21% 22% 23% 23% 22% 4% 5% 5% 5% 5% 9% 9% 8% 7% 8% 66% 65% 64% 65% 65% 2016 2017 2018 1H 2018 1H 2019 Confidential 11
Slide 12: Global Footprint
Global Footprint 2016 2017 2018 1H 2018 1H 2019 By Revenue 36% 37% 35% 38% 30% 33% 31% 32% 29% 30% 24% 26% 18% 17% 19% 15% 14% 12% 13% 11% EMEA NA SA APAC Regional footprint versus key competitors Kordsa • #1 NY TCF producer • #1 NY TCF producer in • The only PET yarn, TCF and • #2 NY TCF producer m
Slide 13: 1H 2019 Revenue Split Progress by Products
1H 2019 Revenue Split Progress by Products Tire Segment Composite Segment Other 0% 0% 3% 2% 0% 3% 7% 13% 100% 100% 98% 90% 84% 2016 2017 2018 1H 2018 1H 2019 Confidential 13
Slide 14: Technology Leadership at The Cutting Edge of Reinforcement
Technology Leadership at The Cutting Edge of Reinforcement S t ro n g f o c u s o n R& D Cu t t i ng e d g e n e w p ro d u c ts Rolling resistance improvements through higher modulus for high performance tires Sales from new products Protection layer for truck & bus tires; reduces tire weight (US
Slide 15: Update on 1H 2019 Results: Key Financials
Update on 1H 2019 Results Ke y F i n an ci als TL Financials (MTL) USD Financials (MUSD) 1H 2018 1H 2019 D 1H 2018 1H 2019 D Sales 1,538 2,586 68.1% 377 461 22.4% Gross Profit 328 526 60.3% 80 94 16.7% Gross Margin (%) 21.3% 20.3% -1 pts' 21.3% 20.3% -1 pts' OPEX (%) 8.2% 8.1% 0 pts' 8.2% 8.1% 0 pts
Slide 16: Update on 1H 2019 Results: Key Balance Sheet Items
Update on 1H 2019 Results Ke y B al an c e S h e e t I t e m s TL Financials (MTL) USD Financials (MUSD) YE 2018 1H 2019 D YE 2018 1H 2019 D Cash and Cash Equivalents 131 524 393 25 91 66 Account Receivables 830 976 146 158 170 12 Inventories 1,048 1,343 296 199 233 34 Other Current Assets 140 171 3
Slide 17: Update on 1H 2019 Results: Free Cash Flow
Update on 1H 2019 Results F re e Cas h F l o w (in TL million, unless otherwise stated) 1H 2018 1H 2019 D Cash Flows From Operating Activities 45 320 275 Net Income 155 219 64 Depreciation & Amortization 62 92 31 Change in Working Capital -362 -259 103 Other Adjustments 190 267 78 Cash Flows From In
Slide 18: Dividend Distribution (MTL)
Dividend Distribution (MTL) Distribution of all the distributable profits • which is lower of Kordsa Turkey solo tax books (VUK) or Kordsa consolidated TFRS (IFRS) net income, 68 67 68 • in the form of cash and/or bonus shares subject to General Assembly approval. 61 58 The distribution decision is
Slide 19: Operating Profit Bridge - MTL
Operating Profit Bridge - MTL Confidential 19
Slide 20: Appendix
Q) xX XXXXX x Appendix 20
Slide 21: 2018 – 2019/1H Financial Trend (MTL)
2018 – 2019/1H Financial Trend (MTL) 2016 2017 2018 1H 2018 1H 2019 621 339 407 293 263 339 Revenue 178 212 219 155 EBITDA Net Income (parent) 3,947 2,485 2,586 1,908 1,538 Confidential 21
Slide 22: 1H 2019 Highlights (FX Rates)
1H 2019 Highlights (FX Rates) Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19 Mar'19 Apr'19 May'19 Jun'19 10 USDTRY (end rate) EURTRY (end rate) 9 8 7.47 6.95 7 6.62 6.60 6.55 6.27 6.32 5.87 6.03 6.03 6.03 6 5.70 6.41 5.99 5.93 5.92 5.63 5.76 5 5.52 5.16 5.26 5.28 5.29 4.89 4 3 Jul'18 Aug'18
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