Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — H1 2020 Earnings Presentation
18 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Aug 10, 2020
Slide 1: 1H 2020 – Earnings Release
1H 2020 – Earnings Release August 10, 2020
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 Pandemic 1 2 Global Footprint 1 3 1H 2020 Highlights 4 Segment Reporting 5 Market Dynamics - Tire 6 Market Dynamics - Composite 7 Update on 1H 2020 Results 8 Operating Profit Bridge 9 Appendix Confidential 3
Slide 4: Covid-19 Pandemic
Covid-19 Pandemic • Covid-19 Coordination Team and Crisis Supreme Board formation • The cessation of all international travels • Dilution of employees in each shift • CFO approval for all Capex items • Partial suspension of yarn and tire cord production operations in Brasil, the USA; Turkey and Thai
Slide 5: Global Footprint
Global Footprint 851 patent application 4 continents ~4,500 2 R&D 197 patents 12 facilities employees Centers WE REINFORCE LIFE Confidential 5
Slide 6: 1H 2020 Highlights
1H 2020 Highlights TL Financials (MTL) USD Financials (MUSD) 1H 2019 1H 2020 D 1H 2019 1H 2020 D Sales 2,586 2,007 -22.4% 461 311 -32.6% EBITDA* 407 267 -34.4% 73 41 -43.0% EBITDA* Margin (%) 15.8% 13.3% - 240 bp 15.8% 13.3% - 240 bp Composite Revenue 328 367 12.0% 58 57 -2.8% Tire cord fabrics (“TC
Slide 7: Segment Reporting
Segment Reporting Ju n ’ 2 0 R e v e n u e S p l i t Asia EMEA TCF & Yarn %21 %33 %78.9 SA By Region By Product %10 NA Other Composite %36 %2.8 %18.3 Ju n ’ 1 9 R e v e n u e S p l i t Asia EMEA TCF & Yarn %26 %30 %83.7 By Region By Product SA %11 NA Other %33 %3.6 Composite %12.7 External 7
Slide 8: Market Dynamics - Tire
Market Dynamics - Tire Glo b al Au t o mo tive Market (Mu n its ) Gl o b al T i re M ark e t ( M u n i ts ) APAC ex. China China EMEA North America South America APAC ex. China China EMEA North America South America 1,699 88.8 1,347 61.0 1,474 77.5 3.3 201.0 50.5 16.3 66.6 2.4 42.8 164.6 +16.3% 14.0
Slide 9: 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 ) • Butadiene: As global economies re- 420 Benzene Propylene Butadiene Crude Oil opened, the first spike of demand 370 increased, butadiene prices although it is 320 Forecast not set to hold within upcoming months. 270 • Propylene
Slide 10: Customer Concentration for Tire Segment
Customer Concentration for Tire Segment Global Players Regional Players Emerging Players Others 21% 23% 22% 22% 25% 5% 4% 5% 5% 4% 9% 8% 8% 8% 10% 65% 64% 65% 65% 61% 2017 2018 2019 1H 2019 1H 2020 Confidential 10
Slide 11: Market Dynamics – Composite
Market Dynamics – Composite Market Size ($M) – Global Carbon Fabric Value (M$) Volume (M lbs) CAGR ‘18-’22 value : 3.0% CAGR ‘18-’22 volume : 6.4% 43 38 33 37 30 1,593 1,661 1,478 1,437 1,209 2018 2019E 2020F 2021F 2022F Market Size ($M) – Prepreg CAGR ‘18-’22 value : 2.4% Value (M$) Volume (M lbs)
Slide 12: Market Dynamics – Composite
Market Dynamics – Composite Commercial Aerospace (M$) Total Aerospace (M$) 1,234 1,194 1,130 1,158 1,106 1,110 1,007 929 896 833 846 868 832 758 2019 2020 2021 2022 2023 2024 2025 External 12
Slide 13: Update on 1H 2020 Results
Update on 1H 2020 Results Ke y F i n an ci als TL Financials (MTL) 1H 2019 1H 2020 D 1Q 2020 2Q 2020 Sales 2,586 2,007 -22.4% 1,199 808 Gross Profit 526 362 -31.2% 215 147 Gross Margin (%) 20.3% 18.0% -2 pts' 18.0% 18.2% OPEX (%) 8.1% 11.4% 3 pts' 10.6% 12.7% Operating Profit 361 191 -47.1% 115 76 O
Slide 14: Update on 1H 2020 Results
Update on 1H 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) YE 2019 1H 2020 D YE 2019 1H 2020 D Cash and Cash Equivalents 730 720 -10 123 105 -18 Account Receivables 969 673 -296 163 98 -65 Inventories 1,231 1,468 237 207 215 7 Other Current Assets 145 25
Slide 15: Update on 1H 2020 Results
Update on 1H 2020 Results F re e Cas h F l o w (in TL million, unless otherwise stated) 1H 2019 1H 2020 D Cash Flows From Operating Activities 320 225 -95 Net Income 219 75 -144 Depreciation & Amortization 92 135 43 Change in Working Capital 230 -148 -378 Other Adjustments -221 162 384 Cash Flows Fr
Slide 16: Operating Profit Bridge - MTL
Operating Profit Bridge - MTL Confidential 16
Slide 17: Appendix
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Slide 18: 1H 2020 Highlights (FX Rates)
1H 2020 Highlights (FX Rates) Jul'19 Aug'19 Sep'19 Oct'19 Nov'19 Dec'19 Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20 USDTRY (end rate) EURTRY (end rate) 7.58 7.58 7.71 7.22 6.86 6.65 6.58 6.44 6.38 6.32 6.21 6.18 6.98 6.81 6.84 6.52 6.23 5.81 5.94 5.97 5.57 5.66 5.74 5.74 Jul'19 Aug'19 Sep'19 Oct'19 No
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