Kimteks Poliuretan Sanayi Ve Ticaret As · BIST:KMPUR
Kimteks Poliuretan Sanayi Ve Ticaret As — 9M 2022 Earnings Presentation
39 slides from Kimteks Poliuretan Sanayi Ve Ticaret As's earnings presentation, November 2022
Slide 1: 2022 9 Month Business Results Investor Presentation
KİMTEKS POLİÜRETAN SANAYİ VE TİCARET A.Ş. and its SUBSIDIARIES 2022 9 Month Business Results Investor Presentation November 2022
Slide 2: Cavidan Karaca, CEO & Deputy Chairman
Cavidan Karaca CEO & Deputy Chairman of the Board of Directors 2015 Kimpur – CEO and Deputy Chairman of the Board of Directors 2014 Kimteks Kimya Tekstil Ürünleri A.Ş. – Consultant 2002 İnnovis Ticaret ve Danışmanlık A.Ş. – General Manager 2001 Omsan Lojistik A.Ş. – Purchasing Director 1997 Arçelik
Slide 3: Overview
1 \ Overview
Slide 4: Why Kimpur?
WHY KİMPUR? OUR VISION To be one of the world's top 10 players in polyurethane systems with innovative products and extraordinary solutions ➢ Turkey's first domestic capital polyurethane systems manufacturer that blends "Advanced Technology" systems based on "Smart Business Model" with agile & lean
Slide 5: Numbers at a Glance
NUMBERS AT A GLANCE: 39 155 kton 65 kton 10. 48 244 %32 600+ ANNUAL PRODUCTION CAPACITY DÜZCE INVESTMENT VISION TO BE ONE EXPORTS TO EMPLOYEE EXPORTS / PRODUCT EXPERIENCE • 130 kton Gebze • 50 kton PU OF THE 10 BIGGEST COUNTRY (28 in R&D) DIVERSITY TOTAL • 25 kton Latvia • 10 kton EVA GLOBAL PLAYERS
Slide 6: Our Global Activities
OUR GLOBAL ACTIVITIES Company Country Capital Share (%) Field of Activity Kimpur Russia Russia %100 Sales, warehousing & distribution service Kimpur Wholesale of plastics and rubber in primary Russia Kimplast Turkey %83 Kimpur form Europe Kimpur Latvia %75 25 kton capacity polyurethane production Eu
Slide 7: Kimpur in All Areas of Life
KIMPUR IN ALL AREAS OF LIFE SOLAR PANEL SYSTEM ROOF INSULATION (Spray Systems) ROCK WOOL / EPS ADHESIVE FRAME (Wood Imitation) SANDWICH PANEL (PUR/PIR) BED HEAD (Wood Imitation) OFFICE CHAIR VISCO PILLOW VISCO BED COOLING SYSTEMS CAR SEAT (HR Foam Systems) CEILING TILE (Semi-Rigid) GARAGE DOOR WATER
Slide 8: Supply Chain & Logistics Management
SUPPLY CHAIN & LOGISTICS MANAGEMENT ▪ Turkey's largest acquisition volume in the sector Kimpur Logistics Warehousing Network ▪ ~90% import rate in production inputs ▪ European and Far Eastern producers in raw material supply ▪ Proactive raw material forecasting & cost studies in line with SAP & Abbr
Slide 9: Our Strategic Priorities
2 » Our Strategic Priorities
Slide 10: Prominent Investment Elements
PROMINENT INVESTMENT ELEMENTS Reliable Solution Partnership R&D Center & Innovative Applications Leading the Industry Strong Domestic & Export Growth Strategy with Wide Product Range Environmental and Social Sustainability Sustainable Enlargement Policies Strong Financial Performance
Slide 11: i. Reliable Solution Partnership
i. Reliable Solution Partnership
Slide 12: Reliable Solution Partnership
RELIABLE SOLUTION PARTNERSHIP ProductManagement Human Resources Supply Chain Management ❖ Brand Awareness ❖ Global and Agile Organizational Structure ❖ Competitive Product Lead Time ❖ Customer Loyalty ❖ Expert and Experienced R&D Team ❖ Strong Supplier Relations ❖ Sectoral Diversity ❖ Wide Product R
Slide 13: ii. R&D Center & Innovative Applications Leading the Industry
ii. R&D Center & Innovative Applications Leading the Industry
Slide 14: Pioneer in the Sector with its R&D Center
PIONEER IN THE SECTOR WITH ITS R&D CENTER R&D Expenditure (Million TL) Kimpur Turkey's Polyurethane R&D Power 11,7 9,9 8,1 6,0 5,2 Among the 250 companies with the highest R&D expenditures 1,8 2017 2018 2019 2020 2021 2022 9A 2022 3Ç Ministry of Science, Industry and Soles, Slippers, Boots, etc. for
Slide 15: iii. Wide Product Range, Strong Domestic & Export Growth Strategy
iii. With Wide Product Range Strong Domestic & Export Growth Strategy
Slide 16: Strong Positioning in Different Sectors with Diversified Revenues
STRONG POSITIONING IN DIFFERENT SECTORS WITH DIVERSIFIED REVENUES 2022 20233Ç 3QSATIŞLARIN DAĞILIMI SALES BREAKDOWN Sales (Thousand 2019 2020 2021 2022 9A Yurtiçi Domestic Export İhracat Tons) 1% 1% 3% Domestic 34.4 49.4 64.7 50.8 11% 3% 1% 0% 2% Shoe 16.7 18.3 20.0 17.3 3% 1% 6% Rigid 9.9 23.3 33.6
Slide 17: Kimpur Product Groups
KIMPUR PRODUCT GROUPS Sales Breakdown of Product Groups by Year, Quantity (%) 2,0% 1,1% 1,1% 0,5% 1,0% 2,7% 2,0% 1,8% 1,2% 1,5% 1,7% 2,2% 1,1% 2,9% 1,3% 7,8% 5,5% 5,4% 16,0% 12,7% 3,3% 6,8% 8,7% Abbreviations 1,0% 2,7% 41,3% 36,8% 37,9% 46,1% 68,0% 43,3% 46,4% 43,3% 32,9% 10,0% 2015 2019 2020 2021 9
Slide 18: Rigid Foam Systems (Rigid)
RIGID FOAM SYSTEMS (RIGID) ▪ Two-component rigid foam systems for insulation purposes for Rigid Foam Systems Sales Amount (Ton) insulation panel and White Goods sectors • The first component is a physical mixture of polyether polyols, 40.923 40.650 catalyst, surfactant, water and/or blowing agents c
Slide 19: Shoe & Slipper Systems
SHOE & SLIPPER SYSTEMS ▪ Expanded microcellular foams in both ester and ether form for all Sales Quantity of Shoe Systems (Ton) types of footwear soles, from occupational safety to sports and everyday products ▪ KIMfoot® are 3-component Polyester systems: 39.250 • First component Polyester Polyol an
Slide 20: Flexible Foam Systems
FLEXIBLE FOAM SYSTEMS Flexible Foam Systems Sales Amount (Ton) ▪ MDI based KIMflex® Flexible Foam Systems produced by Kimpur; • HR foam systems, • Viscoelastic systems, • Integral systems 8.680 • They are classified as filter systems. 7.871 ▪ Systems for the production of flexible foam and integrals
Slide 21: Special Products
SPECIAL PRODUCTS Special Products Sales Amount (Tons) ▪ Polyurethane Systems for elastomeric applications in expanded foams and non-foam structures. ▪ Reaction Injection Molding (RIM), Micro-cellular Structural Foam RIM, 1.300 SRIM (Structural RIM Composites) and low density RRIM (Reinforced 1.230 R
Slide 22: Polyester Polyols
POLYESTER POLYOLS Sales Amount of Polyester Polyols (Tonnes) ▪ It manufactures KIMpol® Polyester Polyols consisting of multifunctional combinations of carboxylic acids and polyhydric alcohols with various functionalities to offer the best solutions to industries such as the footwear industry (system
Slide 23: Raw Materials
RAW MATERIALS ® Raw Material Sales Amount (Ton) 6.495 ▪ The raw materials supplied by Kimpur are collected under Kimraw® 6.010 6.009 6.000 product group and used in many different fields such as plasticisers, adhesives, construction chemicals and paints, especially polyurethane Abbreviations systems
Slide 24: Strong Export Growth Strategy (48 Countries)
STRONG EXPORT GROWTH STRATEGY (48 COUNTRIES) Abbreviations
Slide 25: Strong Export Growth Strategy
STRONG EXPORT GROWTH STRATEGY ▪ Sales to more than 45 countries / more than 1,000 Development in the Number of Export Countries current customers with a sales team based in Turkey & 47 48 abroad 44 41 34 ▪ In the first 9 months of 2022, exports reached TL 25 1,121 million, up 166% compared to 2021 ▪
Slide 26: iv. Environmental & Social Sustainability
iv. Environmental & Social Sustainability
Slide 27: Sustainable Future with Kimpur
Investment Elements SUSTAINABLE FUTURE WITH KIMPUR Environmental and Social Sustainability We Create Values For a Sustainable Future! At Kimpur, we believe that sustainable growth is not possible without creating environmental and social value. We focus on using our resources with rational approache
Slide 28: Projects
Investment Elements PROJECTS Environmental Sustainability ✓ 11.6% in 2020 - 7.1% in 2021 Energy Savings ✓ Target of approximately 20% clean energy and 200-250 tons/year carbon emission reduction with the SPP investment in Gebze ✓ Business Plastics Initiative (IPG) Commitments ✓ Carbon and Water Foot
Slide 29: Sustainable Expansion / Düzce Investment
SUSTAINABLE EXPANSION / DÜZCE INVESTMENT March 2022: Production factory investment Construction Start Date on 17.015 m2 land in Gümüşova OSB End of 2022: Construction Completion Date 15 m USD investment size Early 2023: Kimpur Duzce Factory Investment Starting Production ▪ An additional polyurethane
Slide 30: v. Strong Financial Performance
v. Strong Financial Performance (2022 9A - Critical Financial Indicators)
Slide 31: Zafer Demirel, CFO
Zafer Demirel CFO 2022 Kimpur – CFO 2018 Anadolu Isuzu – Head of Finance, Reporting & IR 2015 Sütaş - Financial Control & Business Development 2013 Anadolu Efes - Financial Reporting & Budgeting 2009 Borusan Holding - Financial Control & Reporting 2006 Deloitte – Audit Middle East Technical Universi
Slide 32: 2022 9A: Increased Exports & Stable Growth
2022 9A: INCREASED EXPORTS & STABLE GROWTH Net Sales (Million TL) CAGR: %139 4.000,0 3.365,0 3.500,0 3.000,0 1.121 2.500,0 2.000,0 1.521,4 1.500,0 420,5 2.244,4 1.000,0 588,9 196,4 1.101,0 500,0 392,6 - 2020 3Ç 2021 9A 2022 9A Yurtiçi Satışlar Domestic Yurtdışı Sales * ForeignSatışlar * Registered e
Slide 33: 2022 9A: Strong Growth in Profitability
2022 9A: STRONG GROWTH IN PROFITABILITY Gross Profit (Million TL) EBITDA (Million TL) 900,0 20,0% 900,0 22,0% 800,0 15,7% 18,0% 14,9% 16,0% 800,0 16,3% 700,0 700,0 14,4% 17,0% 14,0% 600,0 12,0% 600,0 500,0 12,0% 10,0% 500,0 400,0 400,0 8,0% 7,0% 300,0 528,5 6,0% 300,0 546,8 200,0 4,0% 200,0 2,0% 100
Slide 34: Strict Balance Sheet Management & Healthy Financial Indebtedness Ratios
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS Net Financial Debt (Million TL) Net Working Capital (Million TL) 1.200 0,88 1,19 0,89 1,00 1.600 100,0% 1.000 0,81 1.400 878 48,1% 791 795 1.200 45,3% 45,5% 50,0% 800 710 707 0,50 665 1.000 40,5% 600 551 1.542 1.627 483 - 800 1.
Slide 35: 2022 9A: Record Profitability & Strong Balance Sheet Ratios
2022 9A: RECORD PROFITABILITY & STRONG BALANCE SHEET RATIOS 3.365 mTL Net Sales, +121% 2,244 mTL Domestic Sales, +104 1,121 mTL Exports*, +166 vs 2021 9A vs 2021 9A vs 2021 9A • Domestic: +104 • Wide customer portfolio in 6 different • Export to 48 countries • Exports*: +166 sectors 528 mTL Gross Pr
Slide 36: 2022 3. Quarter Highlights
▪ Continued strong net revenue growth in Q3 2022 3. Quarter ▪ Weaker gross margin compared to the first two quarters Highlights of 2022 due to seasonal and mix impact ▪ On the other hand, improving, strong balance sheet ratios 1.177 billion TL Net Revenue Strong Net Revenue growth of +113% vs 3Q21:
Slide 37: Financial Priorities
FINANCIAL FINANCIALPRIORITIES PRIORITIES ✓ Sustainable profitability growth ✓ Strict balance sheet & working capital management ✓ Positive Free Cash Flow Priority ✓ Proactive currency risk management ✓ Effective financial debt management ✓ Maximum dividend yield
Slide 38: Financial Priorities: 2022 Q4 Expectations & 2023 Opportunities
FINANCIAL PRIORITIES 2022 4. Quarterly Expectations / '22 Q4 & '23 Opportunities 2022 4Q Expectations: ✓ 2022 annual sales budget sales over 102 thousand tons ✓ 2022 4Q higher gross margin ✓ Lower financing costs in the last quarter ✓ Proactive foreign currency position management 2022 Q4 & 2023 Opp
Slide 39: info@kimpur.com / www.kimpur.com
CEO: Cavidan Karaca cavidan.karaca@kimpur.com CFO: Zafer Demirel zafer.demirel@kimpur.com IR: Damla Mermeroglu damla.mermeroglu@kimpur.com investorrelations@kimpur.com info@kimpur.com / www.kimpur.com Central Office Factory Gaziantep Branch Emniyet Evleri Mah. Eski Büyükdere Cad. Sapphire Gebze Plas
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