Kordsa Teknik Tekstil A.s. · BIST:KORDS

Kordsa Teknik Tekstil A.s — Q2 2024 Earnings Presentation

17 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Aug 22, 2024

  1. Slide 1: 2Q'24 Financial Results

    Kordsa.com 2Q’24 Financial Results Earnings Release Aug 22 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. 2Q’24 Highlights Market Dynamics Key Financials 04. What’s Next 3

  4. Slide 4: 2Q'24 Highlights

    4 2Q’24 Highlights REVENUE OPERATING Adjusted EBITDA* TIRE REINFORCEMENT CASH FLOW * Increases on volume in line with the market 235 9 MTL 16 M$ * Price war from Far-East MUSD 6.6% Margin * No material change in raw material prices All Hard- Currency EBITDA** : 13 M$ COMPOSITE REINFORCEMENT * Parall

  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) 64 66 53 56 62 62 1,144 1,130 1,033 1,040 1,062 1,084 3.3 3.5 2.9 3.1 2.8 10,2% 3,7% 2.6 2,3% 16.7 6,7% 15.6 0,3% 16.0 16.2 63 -1,2% 62 57 57 5

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

    6 Positive Outlook for the Composite Market 2024 and Beyond Composite Prepreg Market (M$) Composite Textile Market (M$) 5,962 6,376 2,820 2,992 4,601 5,160 5,550 1,790 2,476 2,638 3,686 2,213 296 292 530 12% 286 7% 12% 7% 511 286 7% 836 489 6% 8% 801 478 7% 25% 2,7% 286 735 775 24% 430 252 716 2,540

  7. Slide 7: Price war from Far-East in tire reinforcement and late recovery of aerospace

    7 Price war from Far-East in tire reinforcement and the late recovery of aerospace in the composite affecting our profitability levels USD Financials (MUSD)  2Q'23 2Q'24  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%

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

    8 Continuing price competition coming from Far-East competitors Sales Bridge – MUSD In the competitve market, obtaining volume growth in line with the market * 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 2Q, 24 Revenue Split 2Q, 23 Revenue Split By Region By Product By Region By Product Other; Other; Asia; 2% 3% Composite; Asia; 21% 22% Composite; 22% EMEA; EMEA; 20% 38% 37% SA; 10% SA; 10% TC

  10. Slide 10: Hard Currency Revenue

    10 Hard Currency Revenue Other Depreciation FX exposure 3% 1% Distribution & 8% 3% 4% 4% Packaging 25% 11% 4% Costs Energy 6% 2Q’24 Revenue (2Q’24) Expenses Expenses by (2Q’24) Nature 61% Raw Materials 79% 16% 75% Personel Expenses US $ EUR US $ TL EUR IDR BRL Baht • Hard currency revenues • Ability

  11. Slide 11: Effective cost management helped to limit negative impact of price pressures

    11 Effective cost management helped to limit negative impact of price pressures 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 Cost (including packagi

  12. Slide 12: Positive bottom line despite lower EBIT

    12 Positive bottom line despite lower EBIT Net Income Bridge (MUSD)

  13. Slide 13: Balance Sheet

    13 Balance Sheet TL Financials (MTL) USD Financials (MUSD)  Dec’23 Jun’24   Dec’23 Jun’24  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 1

  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$) Net Debt / Adjusted EBITDA* 47 M$ 349 4.6 296 4.3 4.0 3.6 3.9 262 280 302 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Amount Avg. Int. Rates -10 M$ M$ 31.12.2023 30.06.2024 % % Net Debt (M$) Net Debt

  15. Slide 15: What's Next

    15 What’s Next CASH MANAGEMENT & IMPROVING NET DEBT LEVEL COST IMPROVEMENT FOCUS CONCENTRATE VALUE-ADDED PRODUCTS in COMPOSITE GROWING IN AEROSPACE & NON-AEROSPACE GROWTH PLANS Construction (Kratos), Single End Cord (SEC) in Turkey

  16. Slide 16: Thank You

    Thank You THE REINFORCER

  17. Slide 17: No material change on raw material prices compared to the last year

    17 No material change on raw material prices compared to the last year AA Price Index Trend HMD Price Index Trend 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - Flake Price Index Trend PET Chips Index Trend 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 -

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