Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — Investor Presentation (February 2023)
29 slides from Kordsa Teknik Tekstil A.s's investor presentation, February 2023
Slide 1: Investor Presentation
Kordsa.com Investor Presentation Feb, 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by KORDSA Teknik Tekstil Anonim Şirketi (the “Company”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or
Slide 3: Who we are
Who we are 4 continents ~5,100 2 R&D 921 patent applications 13 facilities employees center 509 patents WE REINFORCE LIFE 3
Slide 4: Agenda
AGENDA 01. 02. 03. Kordsa Story Sustainability Investment Highlights 04. 05. 06. Operations Financial Highlights & Performance Lowlights 4
Slide 5: Our target is the continuation of market leadership in tire reinforcement
5 Our target is the continuation of market leadership in tire reinforcement, growth in Composite segment especially in Europe and actualization of transformation to advanced material company 1. Phase 2. Phase 3. Phase 4. Phase 5. Phase 6 Phase 7. Phase Transformation to Growth with JV Being a global
Slide 6: Kordsa Priorities
6 KORDSA PRIORITIES 1. Business Excellence • Operational Excellence: Safe and reliable operations, competitive cost • Digital Transformation: Data analytics and Artificial Intelligence, Robotics and Automations, Cybersecurity • Effective Finance & Risk Management • Commercial Excellence 2. Growth •
Slide 7: Inspired to Reinforce Life for a Better Today and Tomorrow
7 Passion for Business Responsibility for Excellence People Efficiency and improvements We commit to a in our own operations to non-discriminative, safe and Inspired to Reinforce Life create a positive impact in our value chain and to healthy working environment for all. accelarete low carbon for a
Slide 8: Kordsa Sustainability Targets and Awards & Recognition
8 Kordsa Sustainability Targets Kordsa Awards & Recognition Kordsa Involved in COP27 Kordsa’s Head of Sustainability Nevra Aydoğan delivered a speech at the Best 2030 Examples From Turkish Private Sector 46.2 % Emission Session of the Green Transition Journey of Reduction the Private Sector Panel 20
Slide 9: Kordsa Investment Highlights
9 Kordsa Investment Highlights 01. 02. 03. Strong hedge position to Global footprint with Growth in composite country risks through %100 large presence at reinforcement hard-currency revenue growing regions market 04. 05. Strong ESG position Strong cash generation and dividend payout
Slide 10: Operations
10 Industrials / Solid Positions OPERATIONS FINANCIALS
Slide 11: Global Footprint and Kordsa Market Position
11 Global Footprint NORTH AMERICA Kordsa Market Position +47% vs. 2021 EMEA #1 NY TCF producer #1 PET TCF producer Anaheim, CA İstanbul İzmit Quakertown, PA NA Santa Ana, CA Laurel Hill, NC San Marcos, CA Chattanooga, TN Pistoia, Italy #1 NY TCF producer in US Thailand Indonesia SA Indonesia Composi
Slide 12: Segment Reporting Results
12 Segment Reporting Results Dec, 22 Revenue Split Dec, 21 Revenue Split By Region By Product By Region By Product Other; Other; 2% 6% Composite, 10% Asia; Composite; Asia; 26% EMEA; 11% 28% EMEA; 33% 34% SA; 11% SA; 12% TCF & TCF & NA; Yarn; NA; Yarn; 30% 83% 27% 88%
Slide 13: Tire Cord Fabric Value Chain
13 Tire Cord Fabric Value Chain MANUFACTURING PROCESS RAW MATERIALS NY66 and PET HMLS Dipped Yarns Fabric Polymerisation Chemical Twisting and and Yarn Greige Treatment Weaving Spinning Fabric (dipping) Oil derivative Chemicals and Polymers HMD Integrated Adipic Acid Higher value production can adde
Slide 14: Where do our products go…
14 GROOVE Where do our products go… RIB CAP PLIES • A tire is a highly complex composite with approx. 40 components working under dynamic conditions enduring heat and motion SIPE • NY66 typically used in cap plies RADIAL PLIES • PET typically used in radial plies • By weight: 350-450gr per tire • By
Slide 15: Market Dynamics / Tire
15 Market Dynamics / Tire Global Automotive Market (million units) Global Tire Market (million units) 90 95 74 77 82 85 3.0 1,694 1,753 1,815 1,871 3.0 1,510 1,691 3.0 3.0 2.0 3.0 16.0 17.0 70 74 6,4% 14.0 15.0 5,9% 63 62 66 13.0 13.0 3,6% 5,5% 54 1,1% 4,1% 189 3,6% 191 4,0% 22.0 23.0 12,2% 185 -0,5
Slide 16: Composite Value Chain
16 Composite Value Chain INTERMEDIATES RAW MATERIALS Prepreg Weaving Fibers: Value added The sole supplier products comprised Carbon Fiber by ceramic, carbon, Aramide of B787 Dreamliner aramid, glass for Glass Fiber various industries Ceramic Fiber such as aerospace, Kevlar energy, automotive, sport
Slide 17: Composite Value Chain
17 Composite Value Chain • 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-efficiency needs COMPOSITE PARTS
Slide 18: Market Drivers / Composite
18 Market Drivers / Composite Global Prepreg Market (MUSD) Global Carbon Fiber Textile Market (MUSD) 3,834 4,024 4,313 4,663 5,082 4,988 3,349 1,504 1,674 1,799 1,927 2,076 1,396 1,137 184 2,311 179 1,486 2,165 173 166 212 1,901 2,028 157 7,5% 7,1% 200 433 1,798 103 11,3% 187 7,8% 411 32,9% 14,5% 5,
Slide 19: Construction Value Chain
19 Construction Value Chain MANUFACTURING PROCESS RAW MATERIALS Cutting NY66 and PP Fibers Twisting Dipping Pucking Polypropylene and nylon 66 Higher value polymers added from dipped fabric Kordsa’s Kratos Fiber Reinforcement are applied in Superstructure & Infrastructure Solutions
Slide 20: Construction Value Chain: Major Applications
20 Construction Value Chain MAJOR APPLICATIONS REINFORCED • Infrastructure projects (tunnels, CONCRETE runways, dams, bridges, metro STRUCTURES tracks, highways) • Mines
Slide 21: Financials
21 Industrials / for the Future of Mobility OPERATIONS FINANCIALS
Slide 22: 2022 Results vs 2021
22 2022 Results REVENUE EBITDA MARGIN vs 2021 1,154 MUSD 11.7% All Hard- Currency 135 MUSD 30% ↑ YOY NET INCOME VOLUME XXX 94 MUSD 2% nearly same as 2021 Recessional slow down
Slide 23: Kordsa Income Statement YE'22
23 Kordsa Income Statement YE’22 USD Financials (MUSD) 2021 2022 D 1Q'22 2Q'22 3Q'22 4Q'22 Sales 888 1,154 30.0% 299 300 286 269 Gross Profit 195 210 7.9% 74 54 44 38 Gross Margin (%) 21.9% 18.2% -4 pts' 24.9% 18.1% 15.4% 14.0% OPEX (%) 11.0% 9.9% -1 pts' 9.0% 9.4% 9.4% 11.7% Operating Profit 149 10
Slide 24: Well-Positioned for Strong Cash Generation and Dividends
24 Well-Positioned for Strong Cash Generation and Dividends • Demonstrates value-based pricing model FX exposure • Ability to pass through raw material price volatility: 4% 1% (Revenue – raw material costs) tracked as a KPI by sales team 6% 1% 22% • Conversion costs as a key metric for management KP
Slide 25: Well-Positioned for Strong Cash Generation
25 Well-Positioned for Strong Cash Generation Average Working Capital Turnover Net Debt / EBITDA -0.8pp 2.8 2.6 2.2 35.0% 2.0 2.0 31.9% 30.6% 30.2% 29.6% 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Amount Avg. Int. Rates INVENTORIES UP 31% Y-O-Y M$ 31.12.2021 31.12.2022 % Driven by s
Slide 26: Highlights & Lowlights
26 HIGHLIGHTS & LOWLIGHTS HIGHLIGHTS LOWLIGHTS COMPOSITE REINFORCEMENT GLOBAL RECESSION Based on market research, recovery process are rapidly accelerating Cost and availability of funds could be more challenging starting from 2H’23 Expectation for global recession is bringing more competition from
Slide 27: Thank You
Thank You THE REINFORCER
Slide 28: Balance Sheet
28 Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2021 YE 2022 D YE 2021 YE 2022 D Cash and Cash Equivalents 195 237 42 15 43 28 Account Receivables 2.566 3.557 991 193 206 14 Inventories 2.989 3.744 756 224 294 70 Other Current Assets 436 580 144 33 53 20 PPE & Intangibles 5.238 5.972 7
Slide 29: Kordsa Income Statement YE'22 (TRY)
29 Kordsa Income Statement YE’22 TRY Financials (MTRY) 2021 2022 D 1Q'22 2Q'22 3Q'22 4Q'22 Sales 7,891 18,440 133.7% 4,160 4,639 4,962 4,679 Gross Profit 1,732 3,359 94.0% 1,035 853 795 676 Gross Margin (%) 21.9% 18.2% -4 pts' 24.9% 18.1% 15.4% 14.0% OPEX (%) 11.0% 9.9% -1 pts' 9.0% 9.4% 9.4% 11.5%
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