Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — H1 2022 Earnings Presentation
20 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Aug 10, 2022
Slide 1: Earnings Release
Kordsa.com Earnings Release Aug 10, 2022
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: Agenda
AGENDA 01. 02. 03. 2022 in Brief Highlights/ Market Dynamics Lowlights 04. 05. ESG Focus Key Financials 3
Slide 4: 1H'22 Results vs 1H'21
4 1H’22 Results REVENUE EBITDA MARGIN vs 1H’21 599 MUSD 15.3% All Hard- Currency 92 MUSD 47% ↑ YOY robust margin NET INCOME VOLUME GROWTH XXX 61 MUSD 10% ~ 22% increase Strong demand in tire reinforcement
Slide 5: 2Q'2022 Snapshot
5 2Q’2022 Snapshot RESULTS DRIVERS • Finalized the purchase of 60% shares for 24,6 M€ • Microtex specializes in carbon fiber weaving and prepreg production with Microtex Composites 24.6 M€ focus on super-luxury automotive and motorsports in Europe (Deal Value) • Transaction in support of our diversi
Slide 6: 1H2022 Snapshot
6 1H2022 Snapshot RESULTS DRIVERS • Strong tire reinforcement demand driving prices up USD-Based Revenue 47.1% • 54 M$ revenue contribution from composite segment (+30% YOY) Growth • Price increases excepted by market due to commodity, energy and freight (vs 1H’21) price hikes • Volume growth across
Slide 7: Highlights & Lowlights
7 HIGHLIGHTS & LOWLIGHTS HIGHLIGHTS LOWLIGHTS RECOVERY PROCESS in COMPOSITE TIRE REINFORCEMENT DEMAND Recovery is taking longer than expected impacting profitability of Steady trend expected to continue in 2H’22 segment STRONG LOCAL PLAYER GAME GLOBAL CRISIS (UKRAINE – RUSSIA WAR) Global footprint h
Slide 8: Market Dynamics / Tire
8 Market Dynamics / Tire Global Automotive Market (million units) Global Tire Market (million units) 77 87 93 99 1,694 1,753 1,815 1,871 74 80 1,510 1,691 3.0 4.0 73.9 69.4 71.7 3.0 63.8 66.8 3.0 8,8% 17.0 54.0 3,4% 3,6% 198.2 199.7 2.0 3.0 6,9% 16.0 189.6 0,2% 193.0 196.2 3,1% 3,9% 16.0 12,0% 13.0
Slide 9: Market Drivers / Composite
9 Market Drivers / Composite Global Prepreg Market (‘000 USD) Global Carbon Fabric Market (‘000 USD) 1,401 1,316 4,998 1,185 1,234 1,173 6,6% 8,2% 4,565 1,100 5,2% 7,7% 4,218 3,764 4,0% 3,916 7,7% -32,8% 12,1% -21,5% -1,0% 3,359 2019 2020 2021E 2022F 2023F 2024F 2019 2020 2021E 2022F 2023F 2024F Kor
Slide 10: Segment Reporting Results
10 Segment Reporting Results Jun, 22 Revenue Split Jun, 21 Revenue Split By Region By Product By Region By Product Other; Other; 2% 5% Composite, 10% Composite; Asia; 9% Asia; 27% EMEA; 28% EMEA; 34% 34% SA; 11% SA; 12% TCF & TCF & NA; Yarn; NA; Yarn; 28% 86% 26% 88%
Slide 11: 2022 Key Financials
11 2022 Key Financials Revenue vs 2021 (M$) EBITDA vs 2021 (M$) +%47 +%31 92 49% 599 4% 70 407 57 299 300 34 35 202 2Q'21 1Q'22 2Q'22 1H'21 1H'22 2Q'21 1Q'22 2Q'22 1H'21 1H'22 • Drivers of revenue: • Higher cost of energy, transport and labor as a result of inflationary pressures put restrain of cos
Slide 12: Global Footprint and Kordsa Market Position
12 Global Footprint NORTH AMERICA Kordsa Market Position +63% +48% vs. 2021 vs. 2020 EMEA #1 NY TCF producer #1 PET TCF producer Anaheim, CA İstanbul İzmit Quakertown, PA NA Santa Ana, CA Laurel Hill, NC San Marcos, CA Chattanooga, TN #1 NY TCF producer in US Thailand Indonesia SA Brazil Composite B
Slide 13: Kordsa Income Statement 1H'22
13 Kordsa Income Statement 1H’22 USD Financials (MUSD) 1H 2021 1H 2022 D 2Q 2021 2Q 2022 D Sales 407 599 47.1% 202 300 48.6% Gross Profit 94 129 37.1% 46 54 17.5% Gross Margin (%) 23.0% 21.5% -2 pts' 22.8% 18.1% -5 pts' OPEX (%) 10.6% 9.2% -2 pts' 10.6% 9.2% -2 pts' Operating Profit 69 73 5.2% 37 28
Slide 14: Well-Positioned for Strong Cash Generation
14 Well-Positioned for Strong Cash Generation Average Working Capital Turnover Net Debt / EBITDA -0.8pp 35.0% 2.7 2.3 2.2 2.0 2.0 32.7% 32.2% 31.9% 30.6% 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 Amount Avg. Int. Rates INVENTORIES UP 21% Y-O-Y M$ 31.12.2021 30.06.2022 % Driven by s
Slide 15: Kordsa Sustainability Events
15 Kordsa Sustainability Events Our Chief Finance and Supply Chain Officer took part in the Turkey's strongest sustainable business meeting “Green Business: Sustainable Business Summit” in “Sustainable Finance&ESG” session in May Our CEO took part as a speaker in Tackling the 2022 "Triple Planetary
Slide 16: Kordsa Sustainability Targets and Awards & Recognition
16 Kordsa Sustainability Targets Kordsa Awards & Recognition 2021 CDP Turkey Climate Change and Water Leader 2030 (A-Global List in the world for water) 30% Emission Reduction Ecovadis Gold Medal 2030 2030 Entered Istanbul Stock Exhance 50% water withdrawal 46.2% total waste reduction per unit reduc
Slide 17: Thank You
Thank You THE REINFORCER
Slide 18: Well-Positioned for Strong Cash Generation and Dividends
18 Well-Positioned for Strong Cash Generation and Dividends • Demonstrates value-based pricing model FX exposure • Ability to pass through raw material price volatility: (Revenue – raw material costs) tracked as a KPI by sales team 4% 1% 6% 1% 22% • Conversion costs as a key metric for management KP
Slide 19: Well-Positioned for Strong Cash Generation and Dividends
19 Well-Positioned for Strong Cash Generation and Dividends • Demonstrates value-based pricing model FX exposure • Ability to pass through raw material price volatility: (Revenue – raw material costs) tracked as a KPI by sales team 4% 1% 7% • Conversion costs as a key metric for management KPIs (mai
Slide 20: Balance Sheet
20 Balance Sheet USD Financials (MUSD) YE 2021 1H 2022 D Cash and Cash Equivalents 15 59 45 Account Receivables 193 238 45 Inventories 224 272 48 Other Current Assets 33 39 6 PPE & Intangibles 410 402 -8 Investment Property 24 24 0 Goodwill 123 123 0 Other Non-Current Assets 30 29 -1 Account Payable
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