Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — FY2020 Earnings Presentation
20 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Feb 22, 2021
Slide 1: 2020 – Earnings Release
2020 – Earnings Release February 22, 2021
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 Covid-19 Actions 1 2 2020 in Brief / Highlights 1 3 Segment Reporting 4 Market Dynamics - Tire 5 Market Dynamics - Composite 6 Update on YE2020 Results 7 EBITDA Bridge 8 News / Awards in 2020 9 Appendix External 3
Slide 4: Covid-19 Actions
Covid-19 Actions SHE • Immediate crisis management actions implemented with global reach and applied work practices across entities. • Stopped all international travels by end Feb. • Work from home implemented for all our workers who are defined as risk group (over age of 60 and chronic disease, pre
Slide 5: 2020 in Brief
2020 in Brief • Market expectation of 2020 was at par with 2019 • Covid impact started to be felt by mid March at all locations I.Quarter • Shutdown of several tire and composite companies in EU, NA and LATAM due to outbreak Tire Segment - Revenue Distribution 2020 • Asian suppliers started failing
Slide 6: 2020 Highlights
2020 Highlights TL Financials (MTL) USD Financials (MUSD) 2019 2020 D 2019 2020 D Sales 5,137 4,536 -12% 906 647 -29% Tire Segment 4,205 3,792 -10% 741 541 -27% Composite Segment 760 674 -11% 134 96 -28% Construction Segment 14 31 119% 3 4 77% Other 158 39 -75% 28 6 -80% EBITDA* 747 574 -23% 132 82
Slide 7: Segment Reporting
Segment Reporting Dec’20 Revenue Split Asia EMEA TCF & Yarn %24 %32 %84 SA By Region By Product %12 NA Other Composite %32 %1 %15 Dec’19 Revenue Split Asia EMEA TCF & Yarn %26 %30 %82 By Region By Product SA %11 NA Other %33 %3 Composite %15 External 7
Slide 8: Market Dynamics – Tire Cord Fabric
Market Dynamics – Tire Cord Fabric Glo b al L igh t V e h i c l e M ark e t ( M u n i ts) APAC ex. China China EMEA North America South America 94.8 • Global Light Vehicle & Passenger Car production is 88.8 91.4 86.1 expected to decline 16.7% in 2020, China down is 74.0 3.2 3.5 3.3 3.0 6.3% 16.6 17.
Slide 9: Market Dynamics – Tire Cord Fabric
Market Dynamics – Tire Cord Fabric T ire R e in f o rc e me nt M ark e t ( N Y 6 . 6) 336 333 344 315 285 Nylon 6.6 3.4% 10.4% 5.7% -15.2% • Approximately 55% of NY66 demand is used in cap ply and the growth ratio is inline with Passenger and LV Tire for this part • 45% of NY66 demand is consumed in
Slide 10: RM Price Drivers - Tire
RM Price Drivers - Tire NY R aw M at e ri al T re n d ( I n d e x e d ) • Propylene: In general, the recovery of 420 Benzene Propylene Butadiene Crude Oil derivatives demand, which is tied more 370 closely to non-durable goods applications 320 Forecast or the construction sector, outstripped 270 the
Slide 11: Customer Concentration for Tire Segment
Customer Concentration for Tire Segment Global Players Regional Players Emerging Players Others 21% 23% 22% 22% 5% 4% 4% 5% 9% 8% 8% 10% 65% 64% 65% 63% 2017 2018 2019 2020 External 11
Slide 12: Market Dynamics – Composite
Market Dynamics – Composite Glo b al P re p re g M ark e t ( M $ ) Commercial Aerospace Other 5,077 Aerospace Industry • Passenger numbers are expected to plummet to 3,916 1.8 billion (60.5% down on the 4.5 billion 3,491 3,568 passengers in 2019). This is roughly equivalent to 2,623 3,509 passenger
Slide 13: Update on 2020 Results
Update on 2020 Results Distr. Other %17 & Pack. %5 Ke y F i n an ci als Dec’20 Energy Raw expenses by Materials TL Financials (MTL) %9 2019 2020 D nature %53 Sales 5,137 4,536 -11.7% Personnel Gross Profit 987 803 -18.6% %16 Gross Margin (%) 19.2% 17.7% -1 pts' OPEX (%) 8.7% 11.3% 2 pts' Operating P
Slide 14: Update on 2020 Results
Update on 2020 Results Ke y B al an c e S h e e t I t e m s TL Financials (MTL) USD Financials (MUSD) 2019 2020 D 2019 2020 D Cash and Cash Equivalents 730 450 -280 123 61 -62 Account Receivables 969 1,091 122 163 149 -15 Inventories 1,231 1,225 -6 207 167 -40 Other Current Assets 145 123 -22 24 17
Slide 15: Update on 2020 Results
Update on 2020 Results F re e Cas h F l o w TL Financials (MTL) 2019 2020 D Cash Used in Operating Activities 706 902 197 Net Income 378 150 -228 Depreciation & Amortization 206 285 78 Change in Working Capital -313 -71 242 Other Adjustments 434 538 104 Cash Used in Investing Activities -1,162 -208
Slide 16: EBITDA Bridge – MUSD
EBITDA Bridge – MUSD External 16
Slide 17: Sustainability Focus
Sustainability Focus • Improve CDP Climate Change score by two levels every year • We participate in the Ecovadis CSR 2017: D 2018: C- 2019: B 2020: A- Rating for environmental, social and • We improved CDP Water Security score governance issues. by one level every year. 2018: 67 2019: 70 2017: C 20
Slide 18: News / Awards in 2020
1. Certification E fa ) AS9100 AHT has received AS9100 certification which is the internationally recognized quality management system for the aviation, space and defence. Brand Finance Kordsa was included by Brand Finance for 2020 in the list at the 50th place among 100 companies that were included
Slide 19: Appendix
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Slide 20: 2020 Highlights (FX Rates)
2020 Highlights (FX Rates) Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Oct'20 Nov'20 Dec'20 9.70 9.30 9.13 9.01 8.69 8.15 7.58 7.58 7.71 8.31 7.22 6.86 7.81 7.80 6.58 7.31 7.34 6.98 6.81 6.84 6.94 6.52 6.23 5.97 USDTRY (end rate) EURTRY (end rate) Jan'20 Feb'20 Mar'20 Apr'20 May'2
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