Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — Investor Presentation (September 2021)
28 slides from Kordsa Teknik Tekstil A.s's investor presentation, September 2021
Slide 1: Kordsa Investor Presentation
Kordsa Investor Presentation Sep, 2021
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: Global Footprint
Global Footprint 4 continents ~4,500 2 R&D 937 patent applications 12 facilities employees centers 204 patents WE REINFORCE LIFE External
Slide 4: Global Footprint
Global Footprint Anaheim, CA Quakertown, PA İzmit Regional Laurel Hill, NC İstanbul Composite Reinforcement Footprint Santa Ana, CA Chattanooga, TN versus Key San Marcos, CA Tire Reinforcement Thailand Competitors Construction Reinforcement Brazil Indonesia R&D Center EMEA NA SA APAC Kordsa #1 NY TC
Slide 5: Milestones
Milestones Acquisition of Fabric Second Development, Textile Merging R&D Center Start up of Products and Advanced EcoVadis Acqusition @Composit Indonesia Honeycomb CSR Rating e s expansion Technologies Gold Medal Technology Center of AS9100 Acquisition Global Technology The Best R&D Center Excellenc
Slide 6: Strategy House
Strategy House Our Vision = Inspired to Reinforce Life —_—— Pillar Initiatives INNOVATION © Material S Tire Technolog Courage Collaboration | Continuous improvement | External THE REINFORCGER KORDOA)
Slide 7: Kordsa in Brief
Kordsa in Brief Tire Cord Fabrics Next Generation Fabrics Composite Construction (“TCF”) ✓ Strategic supplier of leading tire ✓ Textile reinforcement materials ✓ Pioneer of open innovation : ✓ High performance polymer-based manufacturers in the industry for green tires Composite Technologies Center
Slide 8: Kordsa Investment Highlights
Kordsa Investment Highlights 1 Market leadership based on longstanding strategic partner status with all global tire players 2 Global footprint with large presence at growing regions 3 Technology leadership at the cutting edge of reinforcement 4 Growth in composite reinforcement market 5 Growth oppo
Slide 9: Must Win Battles
Must Win Battles ✓ Operational Excellence : Safe and reliable operations, competitive cost 1. ✓ Digital Transformation: Data analytics and Artificial Intelligence, Robotics Business and Automations, Cybersecurity Excellenc e ✓ Effective Finance & Risk Management ✓ Commercial Excellence ✓ Growth in T
Slide 10: Overview of The Tire Cord Fabric Value Chain
Overview of The Tire Cord Fabric Value Chain RAW MATERIALS MANUFACTURING PROCESS PRODUCTS Kordsa Products NY66 and Polymerisation Spinning PET HMLS Yarns Oil Derivative Ingredients Twisting For NY66 yarns: • Hexamethylenediamine (HMD) • Adipic Acid • NY66 Salt • NY66 Flake For Polyester HMLS yarns:
Slide 11: Market Dynamics - Tire
Market Dynamics - Tire Global Automotive Market (Munits) Global Tire Market (Munits) APAC ex. China China EMEA North America South America APAC ex. China China EMEA North America South America 86.0 92.4 95.9 1,633 1,734 1,813 88.7 74.7 1,695 1,498 3,4 65,4 3,2 3,8% 61,2 61,0 4,4% 194,7 3,3 3,0 7,5%
Slide 12: RM Price Drivers - Tire
RM Price Drivers - Tire Global Automotive Market (Munits) 280 260 Benzene Propylene Butadiene Crude Oil • There have been both supply issues and strong demand in early in 240 the first half of 2021 for Nylon66, this is to be continue towards the 220 200 Forecast end of the year due to major producer
Slide 13: Market Leadership Based on Longstanding Strategic Partner Status with All Global Tire Players
Market Leadership Based on Longstanding Strategic Partner Status with All Global Tire Players Nature of Customer Relationship as Key Barrier to Entry Leading Market Shares Length of Typical Length of Co-Development Relationship Approval Period(a) Projects Other; %30 B; %27 NY66 HDI Since 1986 ~ 5 ye
Slide 14: 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 23% 22% 22% 25% 23% 5% 4% 4% 4% 4% 8% 8% 10% 10% 11% 64% 65% 63% 61% 61% 2018 2019 2020 1H 2020 1H 2021 External
Slide 15: Overview of The Composites Value Chain
Overview of The Composites Value Chain RAW MATERIALS INTERMEDIATES COMPOSITE PARTS Weaving Precursors & Fibers: Prepreg • PAN Precursor • Carbon Fiber • Aramide • Glass Fiber • Composites use in aerospace & automotive is • ... increasing, due to improved material properties For PP Fibers: and weight
Slide 16: Overview of The Composites Value Chain
Overview of The Composites Value Chain ✓ Composite use in aerospace& automotive is increasing, due to improved material properties and weight savings over conventional materials. ✓ Total composite investment accounts approx. 310 M USA ✓ Potential M&A targets are always under consideration. ✓ Special
Slide 17: Market Size - Carbon Fiber and Prepreg
RM Price Drivers - Tire Market Size ($M) – Global Carbon Fiber 45 B787 Orders/Deliveries* 42 42 Aerospace & Defence Other 39 1,401 35 36 1,234 31 Gross Orders 1,185 1,172 29 29 -21,4% 1,101 Deliveries 12,2% 7,7% -1,1% 835 768 877 859 902 13 12 7 5 4 4 2 1 0 0 0 566 333 308 313 333 1Q'19 2Q'19 3Q'19
Slide 18: Overview of Construction Reinforcement Value Chain
Overview of The Tire Cord Fabric Value Chain RAW MATERIALS MANUFACTURING PROCESS REINFORCED CONCRETE STRUCTURES NY66 and Polymerisation Spinning PP Fibers Oil Derivative Ingredients Twisting For NY66 yarns: • Hexamethylenediamine (HMD) • Adipic Acid • NY66 Salt • NY66 Flake For PP Fibers: Major Appl
Slide 19: Growth Opportunities: Construction
Growth Opportunities: Construction Application Areas • Railway Systems and Slab Track Concretes • Tunnel Linings and Shotcrete Applications • Dams and Hydroelectric Power Plants • Concrete Roads, Highway Pavements and Bridges • Slab-on-ground Applications Current Status Reference Projects • The poly
Slide 20: Update on 1H 2021 Results
Update on 1H 2021 Results TL Financials (MTL) USD Financials (MUSD) 1H 2020 1H 2021 D 1H 2020 1H 2021 D Sales 2.007 3.203 59,6% 311 407 31,1% Gross Profit 362 738 103,8% 56 94 67,4% Gross Margin (%) 18,0% 23,0% 5 pts' 18,0% 23,0% 5 pts' OPEX (%) 11,4% 10,6% 0 pts' 11,4% 10,6% 0 pts' Operating Profit
Slide 21: Segment Reporting
Segment Reporting Jun’21 Revenue Split Asia; %29 Other; %2 Composite; %10 By Region By Product SA; %11 NA; %25 Jun’20 Revenue Split Asia; %21 Other; %2 SA; %10 Composite; By Region %18 By Product NA; %36 External
Slide 22: Well – Positioned to Enable Volume Growth
Well – Positioned to Enable Volume Growth Comments Light Vehicle Tire Manufacturing Market Evolution ✓ Fabric form contributes the highest value add SA; %6 SA; %6 ✓ Disciplined approach to optimizing footprint NA; %21 ✓ 2015 investment in Indonesia has increased polyester tire cord fabric capacity N
Slide 23: Technology Leadership at The Cutting Edge of Reinforcement
Technology Leadership at The Cutting Edge of Reinforcement Strong Focus on R&D Cutting Edge New Products ✓ Rolling resistance improvements through higher modulus for high performance tires Sales from new products (US $ m) ✓ Protection layer for truck & bus tires; reduces tire weight 64 ✓ 7% higher t
Slide 24: Well-Positioned for Strong Cash Generation and Dividends
Well-Positioned for Strong Cash Generation and Dividends Cost development (US$) • Demonstrates value-based pricing model 104 • Ability to pass through raw material price volatility: Cost per ton (indexed) 100 101 98 99 103 102 102 96 97 94 TCF (Revenue – raw material costs) tracked as a KPI by sales
Slide 25: Well-Positioned for Strong Cash Generation and Dividends
Well-Positioned for Strong Cash Generation and Dividends Gross Profit (TL m) Dividend Distribution % margin 23.0% 18.0% 68 67 68 61 58 738 49 362 2014 2015 2016 2017 2018 2019 (paid in 2015) (paid in 2016) (paid in 2017) (paid in 2018) (paid in 2019) (paid in 2020) Jun'20 Jun'21 EBITDA* Comments % m
Slide 26: Sustainability Focus
Sustainability Focus External
Slide 27: Kordsa's Financial Policy
Kordsa's Financial Policy : Our company guidance for 35%-45% 20%-25% 55%-65% 40%-45% financial year 2021 is as TL basis; USD basis; TL basis; TL basis; follows: Kordsa is targeting progressive improvement in EBITDA margins over the medium term EBIDTA Margins Distribution of all the distributable pro
Slide 28: We Reinforce Life
We Reinforce Life Reinforcing 2 out of every 3 aircraft tires and 1 out of every 3 automobile tires produced in the world
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