Kordsa Teknik Tekstil A.s. · BIST:KORDS

Kordsa Teknik Tekstil A.s — Q1 2024 Earnings Presentation

16 slides from Kordsa Teknik Tekstil A.s's earnings presentation, May 30, 2024

  1. Slide 1: 1Q'24 Financial Results

    Kordsa.com 1Q’24 Financial Results Earnings Release May 30 2024

  2. 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

  3. Slide 3: Agenda

    AGENDA 01. 02. 03. 1Q’24 Highlights Market Dynamics Key Financials 04. What’s Next 3

  4. Slide 4: 1Q'24 Highlights

    4 1Q’24 Highlights REVENUE OPERATING CASH EBITDA TIRE REINFORCEMENT FLOW * ~ 4% shrinkage in volume with fluctuations on 234 175 MTL 22 M$ regional demand MUSD * All Hard- Price war from Far-East Currency 148 MTL in 1Q’23 9.5% Margin COMPOSITE REINFORCEMENT * Strong performance in Microtex NET DEBT

  5. Slide 5: Tire reinforcement market expected to grow ~1% in 2024

    5 Tire reinforcement market expected to grow ~1% in 2024 Global Automotive Market excl. China Global Tire Market excl. China (million units) (million units) 62 64 51 52 56 62 1,011 1,144 1,130 1,033 1,040 1,062 2.9 3.2 3.3 7,1% 2.8 0,5% 2.2 2.6 10,0% 3,5% 16.2 63 62 0,7% 2,0% 2,7% 15.6 16.0 -1,2% 57

  6. Slide 6: Positive Outlook for the Composite Market 2024 and Beyond

    6 Positive Outlook for the Composite Market 2024 and Beyond Global Prepreg Market (MUSD) 3,686 4,601 5,159 5,550 4,973 3,590 5,962 1,714 1,303 1,729 426 323 1,417 382 27,8% 2,7% 24,8% 12,1% 358 7,6% 7,8% 1,175 279 227 191 2,291 2,493 2,556 2,067 1,592 1,416 1,091 488 734 716 735 775 801 562 303 210

  7. Slide 7: Improving EBITDA margin 1Q'24 with operational precautions

    7 Improving EBITDA margin 1Q’24 with operational precautions Financials (MUSD) 1Q'23 1Q'24  2Q'23 3Q'23 4Q'23 1Q'24 Sales 276 234 -15.2% 255 241 231 234 Gross Profit 41 40 -2.5% 37 37 35 40 Gross Margin (%) 14.8% 17.0% 2 pts' 14.4% 15.2% 15.3% 17.0% OPEX (%) 10.2% 11.9% 2 pts' 10.8% 10.5% 11.6% 11.

  8. Slide 8: Continuing volume and price competition from Far-East competitors

    8 Continuing volume and price competition coming from Far-East competitors Sales Bridge – MUSD %4 shrinkage in tire reinforcement demand * Tire Reinforcement Segment

  9. Slide 9: Our aim is to build balanced portfolio between tire and composite reinforcement

    9 Our aim is to build balanced portfolio between tire and composite reinforcement Segment Reporting Results 1Q, 24 Revenue Split 1Q, 23 Revenue Split By Region By Product By Region By Product Other; Other; Asia; 3% 3% Asia; 22% Composite; 22% Composite; 21% EMEA; 19% EMEA; 34% 38% SA; 9% SA; 10% TCF

  10. Slide 10: Hard Currency Revenue

    10 Hard Currency Revenue Other Depreciation FX exposure 3% 1% Distribution & 6% 3% 4% 5% Packaging 5% 25% 11% 7% Costs Energy 1Q’24 Revenue (1Q’24) Expenses Expenses by (1Q’24) 16% Nature Raw Materials 79% 61% 75% Personel Expenses US $ EUR US $ TL EUR IDR BRL Baht • Hard currency revenues • Ability

  11. Slide 11: Difficulties in profitability margins coming from price competition

    11 Difficulties in profitability margins coming from price competition in tire reinforcement market EBIT Bridge (MUSD) * Cost pressure from TR inflation * Imbalance between USDTRY and inflation * Price war – low profitability * Savings from energy costs, especially in EMEA * Sales – Raw Material Cos

  12. Slide 12: Decreasing EBIT level is directly reflected in NI level

    12 Decreasing EBIT level is directly reflected in NI level. Net Income Bridge (MUSD)

  13. Slide 13: Balance Sheet

    13 Balance Sheet TL Financials (MTL) USD Financials (MUSD)  Dec’23 Mar’24   Dec’23 Mar’24  Cash and Cash Equivalents 1,712 1,818 105 58 56 -2 Account Receivables 4,774 5,654 880 162 175 13 Inventories 6,840 7,991 1,151 232 248 15 Other Current Assets 1,416 1,887 471 48 58 10 PPE & Intangibles 13

  14. Slide 14: Focusing on improving working capital and net debt level

    14 Focusing on improving working capital and net debt level Net Working Capital (M$) Net Debt / EBITDA 65 M$ 361 349 4.6 4.0 4.3 280 3.8 3.8 296 262 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Amount Avg. Int. Rates -42 M$ M$ 31.12.2023 31.03.2024 % % Net Debt (M$) Net Debt 337 355 Y

  15. Slide 15: What's Next

    15 What’s Next GROWTH PLANS Polyester Line, Construction (Kratos), Single End Cord (SEC) in Turkey COST IMPROVEMENT FOCUS CASH MANAGEMENT & IMPROVING NET DEBT LEVEL PRODUCT / SECTOR DIVERSIFICATION in COMPOSITE GROWING IN AEROSPACE & NON-AEROSPACE

  16. Slide 16: Thank You

    Thank You THE REINFORCER

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