Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — Q2 2025 Earnings Presentation
29 slides from Kordsa Teknik Tekstil A.s's earnings presentation, August 2025
Slide 1: Investor Presentation
Investor Presentation Aug’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 4,250+ 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: Composite Reinforcement Tire 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 25% FX/Türkiye Position Shipment Fx-Based -Based Revenue Revenue USD-Basis 75% 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) 61 63 56 62 60 59 3.5 1,130 1,033 1,042 1,055 1,072 1,089 2.9 3.0 3.1 3.3 2.8 62 2,6% 56 58 60 61 15.6 15.4 14.5 14
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$) 6,377 6,695 4,280 4,973 3,590 3,686 4,601 5,159 5,549 5,962 5,0% 7,0% 1,508 1,541 2,7% 7,6% 7,4% 1,463 24,8% 12,1% 1,425 296 301 16,2% 1,184 -27,8% 1,370 292 1,115 303 2,7% 1,578 286 286 3
Slide 13: Our aim is to build balanced portfolio between tire and composite reinforcement
Our aim is to build balanced portfolio between tire and composite reinforcement Jun, 25 Revenue Split Jun, 24 Revenue Split Asia Other Other 10% 2% 3% Asia Composite 20% Composite 25% EMEA 22% EMEA 38% 44% SA SA 12% By By 10% By By Region Product Region Product TCF & Yarn NA NA 75% 34% TCF & Yarn 32
Slide 14: Strong financial performance in evolving advanced materials company
Strong financial performance in evolving advanced materials company FINANCIALS OPERATIONS 14
Slide 15: Revenue and EBITDA trends
China continues to grow in the value chain Revenue (M$) REVENUES Tire : PT Indo Kordsa Flood Effect Preservation of market position, excluding the effects of the flood disaster Gradual resumption of production following flooding in Indonesia 1,154 906 888 1,003 929 Composite : A notable increase in
Slide 16: Composite contribution and cost optimization offset adverse impact of Indonesia flood
Remarkable contribution from Composite segment and cost optimization projects offsets adverse impact of Indonesia Flood Effects EBITDA Bridge (MUSD) 6.9 -8.8 15.5 14.8 -1.4 1.7 0.5 -2.4 2.7 4.5 -6.9 2.6 Q2’24 Adj. Tire Tire Cont.* MFG FC Inflation/FX OPEX Inflation/FX FPDE Composites Indo Other Q2’2
Slide 17: Focus on improved working capital and net debt level
17 Focus on improved working capital and net debt level Trade Working Capital (M$) Net Debt / Adjusted EBITDA* -36 M$ 6.5 -80 M$ 5.7 5.4 5.1 4.6 282 246 246 302 326 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 2Q'24 3Q'24 4Q'24** 1Q'25** 2Q'25** Amount Avg. Int. Rates Net Debt*** (M$) M$ 31.12.2024 30.06.2025 % %
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) 2Q’24 2Q’25 Δ 3Q'24 4Q’24** 1Q'25 2Q'25 Sales 235 197 -7.2% 235 225 217 197 Gross Profit 32 27 -23.9% 32 16 30 27 Gross Margin (%) 13,8% 13,9% -3 pts' 13.8% 7.4% 13.9% 13,9% OPEX (%) 12,4% 12,9% 1 pts' 11.9% 11.9% 1
Slide 28: Balance Sheet
Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2024 Jun 2025 Δ YE 2024 Jun 2025 Δ Cash and Cash Equivalents 4,257 3,493 -764 121 88 -33 Account Receivables 5,690 5,750 61 161 145 -17 Inventories 7,474 7,626 151 212 192 -20 Other Current Assets 1,205 1,679 473 34 42 8 PPE & Intangibles 16
Slide 29: Hard Currency Revenue
29 Hard Currency Revenue Other Depreciation FX exposure 4% 2% 11% 5% 2% Distribution & 6% 25% Packaging 4% 15% Costs 2Q’25 Revenue (2Q’25) 6% Expenses by (2Q’25) Energy 53% Expenses Nature Raw Materials 72% 75% 20% US $ TL EUR Personel Expenses US $ EUR IDR BRL Baht • Hard currency revenues • Abilit
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