Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — 2Q 2024 Earnings Presentation
25 slides from Kordsa Teknik Tekstil A.s's earnings presentation, October 2024
Slide 1: Investor Presentation
Investor Presentation Oct’24 Kordsa.com
Slide 2: Highly successful reinforcer growing into an advanced materials company
Highly successful reinforcer growing into an advanced materials company 4 7 13 4,500+ 2 2 CONTINENTS COUNTRIES FACITILITIES EMPLOYEES R&D CENTERS TECHNICAL CENTERS
Slide 3: Successfully Building the Future of Reinforcement
Successfully Building the Future of Reinforcement Being a global Growth in Transformation to Advanced TCF player in independent Growth in Regions & Composite & Material Company Growth local basis player Value Added Products Construction Digital Kordsa 5.0 with JV 1973-1985 1986-2000 2001-2005 2006-2
Slide 4: Why invest in Kordsa
Why invest in Kordsa Strong hedge position to country risks Growth in composite reinforcement market & through 100% hard-currency revenue evolving to advanced materials company Strong cash Strong generation Protected customer base ESG through Global footprint position 4
Slide 5: Composite Reinforcement Tire Reinforcement
Reinforcing 1 out of every 3 automobile tires as well as 2 out of every 3 aircraft tires globally Global Leading Position Trusted Partner Tire Reinforcement #1 TireCord Fabric Producer Longstanding Strategic Partner Status with all Global Tire Players Agile production capabilities / demand fulfillme
Slide 6: Strong hedge position to country risks through 100% hard-currency revenue
Strong hedge position to country risks through 100% hard-currency revenue Domestic EUR-Basis 6% Natural Hedge to 25% FX/Türkiye Position Shipment Fx-Based -Based Revenue Revenue USD-Basis 75% International 94% 03 6
Slide 7: Operations / Financials
OPERATIONS FINANCIALS 7
Slide 8: We reinforce mobility through our tire reinforcement products
We reinforce mobility through our tire reinforcement products GROOVE 01 A tire is a highly complex composite with approx. 40 components RIB working under dynamic conditions enduring heat and motion 02 By weight: 350-450gr per tire CAP PLIES 03 By value => Approx 7-10% cost of a tire is Tire Cord Fab
Slide 9: We reinforce safety through our composite technologies
We reinforce safety through our composite technologies COMPOSITE PARTS Composites use in aerospace & automotive is increasing, due to improved material properties and weight savings over conventional materials «Lightweighting» is a major theme, driven by emission regulations as well as fuel- efficie
Slide 10: We reinforce urbanization through our construction solutions
We reinforce urbanization through our construction solutions REINFORCED CONCRETE STRUCTURES MAJOR APPLICATIONS Infrastructure projects (tunnels, runways, dams, bridges, metro tracks, highways) Mines 10
Slide 11: Composite strategy: two complementary segments
Composite strategy: two complementary segments Through long-term sustainable and profitable growth 113 115 116 109 106 100 102 100 696 707 701 691 90 671 670 668 608 594 Tire Reinforcement Market (ktons) Kordsa Volume (Indexed) 2015 2016 2017 2018 2019 2020 2021 2022 2023 1,816 1,950 2,088 2,209 2,3
Slide 12: Growth in strong composite results
Growth in strong composite results Jun, 23 Revenue Split Jun, 24 Revenue Split Other Other Asia 3% 2% Composite Asia Composite 22% 20% 21% 22% EMEA EMEA 37% 38% SA By By 10% By By Region Product Region Product SA 10% TCF & Yarn TCF & Yarn NA 76% NA 77% 31% 31%
Slide 13: Strong financial performance in evolving advanced materials company
Strong financial performance in evolving advanced materials company FINANCIALS OPERATIONS 13
Slide 14: Ongoing challenging externalities impact financial performance
Ongoing challenging externalities impact financial performance Revenue (M$) EBITDA (M$) 15.7% 14.5% 15.4% 13.7% 12.7% 11.7% 1,154 8.3% 7.9% 7.6% 1,003 906 888 820 681 647 531 469 129 132 137 135 93 82 83 2017 2018 2019 2020 2021 2022 2023 1H'23 1H'24 42 36 2017 2018 2019 2020 2021 2022 2023 1Q'23 1Q
Slide 15: Efficient working capital management & robust profitability leading to strong operating cash flow
Efficient working capital management & robust profitability leading to strong operating cash flow Operating Cash Flow (M$) Amount Avg. Int Rates M$ 31.12.2023 30.06.2024 % % Net Debt 337 382 YE’23 2Q’24 137 USD-Basis 295 350 8.5% 8.1% 124 129 79 90 71 55 57 EUR-Basis 39 45 7.3% 6.3% 50 TRY-Basis 56
Slide 16: We are a Sustainability Partner of our customers
We are a Sustainability Partner of our customers Science based Sustainable Products objectives for Collaborative and challenging Free Licensing 1.5oC scenario Out of 90,000 Supplier Engagement and companies Water Security leaders Entered Istanbul Stock Türkiye’s best R&D Exchange Sustainability Cent
Slide 17: Accelerated our sustainability journey continues
Accelerated our sustainability journey continues Kordsa Sustainability Targets Our sustainability strategy has been created within the 2030 framework of our material 46.2 % Emission issues and is in harmony with Reduction our business strategy. Our enablers through our sustainability journey are 203
Slide 18: Why invest in Kordsa
Why invest in Kordsa Strong hedge position to country risks Growth in composite reinforcement market & through 100% hard-currency revenue evolving to advanced materials company Strong cash Strong generation Protected customer base ESG through Global footprint position 18
Slide 19: Thank You
Thank You THE REINFORCER
Slide 20: Kordsa fabrics and prepregs offer cutting edge solutions for aerospace & automotive markets
Kordsa fabrics and prepregs offer cutting edge solutions for aerospace&automotive markets INTERMEDIATES RAW MATERIALS Weaving Prepreg Fibers: Value added products comprised of The sole supplier of Carbon Fiber - ceramic, carbon, aramid, glass for B787 - Dreamliner Aramide various industries such as
Slide 21: Kordsa fabrics are developed for specific requirements and custom made
Kordsa fabrics are developed for spesific requirements and custom made MANUFACTURING PROCESS RAW Polymerisation NY66 and Twisting Greige Chemical Dipped and Yarn PET HMLS and Fabric Treatment Fabric MATERIALS Spinning Yarns Weaving (dipping) Oil derivative Integrated production Chemicals and Polymer
Slide 22: Construction Value Chain
Construction Value Chain MANUFACTURING PROCESS RAW NY66 and Twisting Dipping Pucking Cutting MATERIALS PP Fibers Higher value Polypropylene added from and nylon 66 dipped fabric polymers Kordsa’s Kratos Fiber Reinforcement are applied in Superstructure & Infrastructure Solutions 22
Slide 23: Ongoing challenging externalities impact financial performance
Ongoing challenging externalities impact financial performance USD Financials (MUSD) 2Q'23 2Q’24 Δ 3Q'23 4Q'23 1Q'24 2Q'24 Sales 255 235 -8.0% 241 231 234 235 Gross Profit 37 32 -11.9% 37 35 40 32 Gross Margin (%) 14.4% 13.8% -0 pts' 15.2% 15.3% 17.0% 12.4% OPEX (%) 10.8% 12.4% 1 pts' 10.5% 11.6% 11
Slide 24: Balance Sheet
Balance Sheet TL Financials (MTL) USD Financials (MUSD) YE 2023 Jun 2024 Δ YE 2023 Jun 2024 Δ Cash and Cash Equivalents 1,712 1,762 50 58 54 -4 Account Receivables 4,774 5,779 1,005 162 176 14 Inventories 6,840 8,528 1,688 232 260 27 Other Current Assets 1,416 2,164 749 48 66 18 PPE & Intangibles 13
Slide 25: Hard Currency Revenue
Hard Currency Revenue Other 1% Depreciation 3% 25% 4% 3% Distribution & 11% 8% Packaging FX 4% Energy 4% Exposure Revenue (1H’24) Costs (1H’24) Expenses 6% 79% 1H’24 Raw Expenses by Nature Materials 75% US $ TL IDR Personel 16% 62% US $ EUR BRL EUR Baht Expenses DIVIDEND Demonstrates value-based pri
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