Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — H1 2021 Earnings Presentation
24 slides from Kordsa Teknik Tekstil A.s's earnings presentation, August 2021
Slide 1: 1H 2021 – Earnings Release
1H 2021 – Earnings Release Aug, 2021
Slide 2: Global Footprint – We Reinforce Life
Global Footprint 4 continents ~4,500 2 R&D 937 patent applications 12 facilities employees centers 204 patents WE REINFORCE LIFE External
Slide 3: 1H 2021 Highlights
1H 2021 HIGHLIGHTS External
Slide 4: 1H 2021 in Brief
1H 2021 in Brief REVENUE EBITDA MARGIN NET INCOME REVENUE BREAKDOWN COST BREAKDOWN 3,203 393 100% 81% MTL 17.3% MTL Hard USD Currency Based 5x times increase 77% USD-Based 81% USD-Based strong margin Up 59% y-o-y 23% EUR-Based 19% EM Currency 553 MTL External
Slide 5: 1H 2021 Snapshot
1H 2021 Snapshot RESULTS DRIVERS • Strong tire reinforcement demand driving prices up 31.1% • Kordsa volume growth above market growth USD-Based Revenue Growth • Price increases as a result of ingredients price hikes (vs 1H’20) • Doubled revenue generation from construction (4.5M$) • Volume growth a
Slide 6: 1H 2021 Key Financials – Revenue Trend
1H 2021 Key Financials Revenue Trend vs. 2020 (M$) vs. 2019 (M$) 2020 2021 2019 2021 Down Up %11 30% 407 461 Down 407 Up 311 %10 %70 202 225 202 118 2Q 1H 2Q 1H ✓Most severe by Covid-19 impact : 2Q’20 ✓ +3% volume growth compared to 2Q’19 ✓ +90% volume growth compared to 2Q’20 (Industry Growth : -8%
Slide 7: 1H 2021 Key Financials – EBITDA Trend
1H 2021 Key Financials EBITDA Trend vs. 2020 (M$) vs. 2019 (M$) 2020 2021 2019 2021 Down %3 Up %70 70 73 70 Down Up %4 %100 41 34 36 34 17 2Q 1H 2Q 1H ✓ The highest EBITDA margin for 1H ✓ Almost at par with 2019 despite continuing recovery and hardships External
Slide 8: 1H 2021 Key Financials – Key P&L Items
1H 2021 Key Financials Key P&L Items EBITDA Margin (%) OPEX Ratio (%) COP (MTL) Net Income (MTL) Up Up 4.0pp 0.8pp 180% 420% impr. 17.3% 540 393 11.4% 13.3% 10.6% 191 75 1H'20 1H'21 1H'20 1H'21 1H'20 1H'21 1H'20 1H'21 ✓ Margin expansion in tire ✓ 36M$ vs 43 M$ (1H’20 vs 1H’21) ✓ 10.3 M$ Brazil tax c
Slide 9: 1H 2021 Revenue by Region (USD-basis)
1H 2021 Revenue by Region (USD-basis) NORTH AMERICA -9% -33% VS. 2020 VS. 2019 APAC EMEA +73% -2% +38% +0% VS. 2020 VS. 2019 VS. 2020 VS. 2019 SOUTH AMERICA +60% -6% VS. 2020 VS. 2019 External
Slide 10: Market Dynamics
Market Dynamics External
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: Market Dynamics - Composite
Market Dynamics - Composite Market Size ($M) – Global Carbon Fiber 45 B787 Orders/Deliveries* 42 42 Aerospace & Defence Other 39 1,401 35 36 1,234 31 Gross 1,185 1,172 29 29 -21,4% 1,101 Orders 12,2% 7,7% -1,1% 835 768 877 859 902 13 12 7 5 4 4 2 1 0 0 0 566 333 308 313 333 1Q'19 2Q'19 3Q'19 4Q'19 1
Slide 13: Key B/S Items
1H 2021 Key B/S Items External
Slide 14: Average Operating Working Capital (USD-Basis)
Average Operating Working Capital (USD-Basis) -0.8pp INVENTORIES DOWN 17% Y-O-Y Driven by strong demand in tire and force majeure effect RECEIVABLES UP 68% Y-O-Y Driven by strong demand in tire reinforcement 35.8% 33.8% 34.7% 33.6% 32.8% PAYABLES UP 75% Y-O-Y Driven by strong demand in tire reinforc
Slide 15: Solid Balance Sheet (USD-Basis)
Solid Balance Sheet (USD-Basis) Net Debt / EBITDA M$ Q4'20 Q2'21 Cash and Cash Equivalents 61 41 Account Receivables 149 165 Inventories 167 179 4.1 4.0 3.5 3.3 Other Assets 659 651 2.7 Account Payables 90 101 Total Debt 392 342 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Short Term Debt 227 219 Long Term Debt 16
Slide 16: ESG Focus
ESG Focus External
Slide 17: Sustainability Focus
Sustainability Focus External
Slide 18: Highlights & Lowlights
HIGHLIGHTS &LOWLIGHTS HIGHLIGHTS LOWLIGHTS TIRE REINFORCEMENT DEMAND FORCE MAJEURE Growth trend expected to continue in 2H’21 Raw material suppliers still cannot announce a definitive date for its removal CONTAINER ISSUES RECOVERY PROCESS in COMPOSITE Equipment and port issues continue With increase
Slide 19: Q&A
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Slide 20: Appendix
Appendix External
Slide 21: Balance Sheet
Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2020 1H 2021 D YE 2020 1H 2021 D Cash and Cash Equivalents 450 354 -96 61 41 -21 Account Receivables 1,091 1,437 346 149 165 16 Inventories 1,225 1,554 329 167 179 12 Other Current Assets 123 265 142 17 30 14 PPE & Intangibles 3,343 3,745 40
Slide 22: Cash Flow
Cash Flow TL Financials (MTL) 1H 2020 1H 2021 D Cash Used in Operating Activities 225 370 146 Net Income 75 393 318 Depreciation & Amortization 135 154 19 Change in Working Capital -207 -604 -397 Other Adjustments* 221 428 206 Cash Used in Investing Activities -56 -66 -11 Maintenance CAPEX -56 -66 -
Slide 23: EBITDA Bridge (M$)
EBITDA Bridge (M$) 37.0 || = — 70.3 || 44 midien 3.9 ; 7A — 0.5 11.8 41.4 1H 2020 Volume Price Raw Material Mix Other Income SARM Composite Other 1H 2021 External KORDOA) THE REINFORCER
Slide 24: Kordsa's Financial Policy
Kordsa's Financial Policy : Our company guidance for financial 35%-45% 20%-25% 55%-65% 40%-45% year 2021 is as follows: TL basis; USD basis; TL basis; TL basis; Kordsa is targeting progressive improvement in EBITDA margins over the medium term EBIDTA Margins Distribution of all the distributable pro
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