Kordsa Teknik Tekstil A.s. · BIST:KORDS
Kordsa Teknik Tekstil A.s — Kordsa Global — FY2015 Earnings Presentation
17 slides from Kordsa Teknik Tekstil A.s's earnings presentation, February 2016
Slide 1: KordSA Global 2015 Earnings Presentation
Strictly confidential KordSA Global 2015 Earnings Presentation
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Kordsa Global Endüstriyel İplik ve Kord Bezi Sanayi ve Ticaret Anonim Şirketi (the “Company”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is m
Slide 3: Market Dynamics: Global Automotive and Tire Market
Market Dynamics Global Automotive Market Global LV Assembly – M Units / Year • Strong 2015 sales in EU, NA. LATAM struggles. 2015-2020E CAGR: 4% • Record number of recalls in the industry will continue to be felt into 2016 (and beyond). • Key trends into the future: strategic partnerships on autonom
Slide 4: Market Dynamics: Tire Reinforcement Market
Market Dynamics Tire Reinforcement Market (NY6.6) Nylon 6.6 Cap-ply demand grows as LV tire market grows 2015-2020 CAGR: +2.6% Slower growth in China Low demand is expected to continue in mining & large agro tires Low NY6 prices continue to pressure NY66 Source: Company Estimates Cap-ply gro
Slide 5: Strategy house
Strategy house Pillar Initiatives • Reinforcements for • Competitive Cost • New Products for High Composites Industry Performing Tires • Product and Service Quality Leadership • Reinforcements for • Profitable Growth for Tire Construction Industry • Lean and Agile Processes Industry and Teams • Fibe
Slide 6: What we have been doing in 2015
What we have been doing in 2015 1. Operating Excellence a. Continuing Cost Reduction Programs • Energy, labor and equipment efficiency initiatives • Alternative raw material and chemicals source developments and purchasing excellence b. Lean Kordsa Global • High capacity utilization at large entitie
Slide 7: 2015 Regional Revenue Split (2014 vs 2015)
2015 Regional Revenue Split (2014 vs 2015) 38,6% 29,6% 2014 17,4% 2015 36,1% 14,5% 28,0% 22,3% 13,7% EMEA APAC NA SA 6
Slide 8: Strong Focus on R&D
Strong Focus on R&D Revenue From New Products (US$m) 57 52 41 28 10 2012 2013 2014 2015 2016 7
Slide 9: Key Financials
2015 Key Financials In MMTL 2014 2015 Change Net Sales 1,569 1,735 10.6% Gross Profit 234 315 34.6% Gross Profit % 15% 18% +3 pts Operating Profit 107 171 59.0% Operating Profit % 7% 10% +3 pts EBITDA 179 242 35.1% EBITDA % 11.4% 14.0% +2.6 pts Net Income Parent Company 77 99 28.6% 8
Slide 10: Ebitda Evolution 2014 vs 2015 (M$)
Ebitda Evolution 2014 vs 2015 (M$) 9
Slide 11: Balance Sheet
2015 Balance Sheet December 31, December 31, Change In MMTL 2014 2015 Cash and Cash Equivalents 14 18 (4.1) Account Receivable 359 474 (115) Inventories 437 425 13 Accounts Payable (208) (268) 60 Working Capital 588 631 (43) WCAP Turnover 2.7 2.7 - Total Debt 557 554 3 Net Debt 544 537 7 Short Term
Slide 12: Free Cash Flow
2015 Free Cash Flow December December In MMTL Change 31, 2014 31, 2015 Net Income with Minority 95 116 22 Depreciation and Amortization 68 81 (13) Financial expense / (income) 9 15 (6) Change in Working Capital (146) (23) 124 Cash Used in Investing Activities (212) (77) 135 Other 30 26 (4) Free Cash
Slide 13: Dividend Distribution
Dividend Distribution In MMTL 80,0 76 70,0 68 60,0 50,0 40,0 35 32 30,0 20,0 10,0 0 - 2011 2012 2013 2014 2015 Kordsa distributes all the distributable income subject to Gen Assembly approval. Basis of distribution is the lower of the Turkish solo tax books or consolidated TFRS net income. 12
Slide 14: Guidance
Guidance Feb'2016 Revenue Growth %10 - %20 Ebitda Growth %15 - %20 Raw Material Highly correlated with NY -------> Butadiene, Benzene, Propylene Pet -------> Highly correlated with PTA, MEG Recurring Creep Capex 23 M$ *EBITDA Calculation = Operating Profit - [Dep&Amort] - [A]* - [B]** [A]* : FX Gain
Slide 15: APPENDIX
APPENDIX KORDOOQ)cLoBAL «
Slide 16: RM Price Drivers: NY Raw Material Trend
20 40 60 80 0 100 120 140 160 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 RM Price Drivers Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 BZ Apr-15 May-15 BD Jun-15 Jul-15 Aug-15 PP Sep-15 Oct-15 OIL Nov-15 Dec-15 NY Raw Material Trend Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 A
Slide 17: RM Price Drivers: Polyester Raw Material Trend
50 60 70 80 90 50 60 70 80 90 100 110 120 100 110 Jan-14 Jan-14 Feb-14 Feb-14 Mar.14 Mar.14 Apr-14 Apr-14 May.14 May.14 Jun-14 Jun-14 Jul-14 Jul-14 Aug-14 Aug-14 Sep-14 Sep-14 Oct-14 Oct-14 Nov-14 Nov-14 Dec-14 Dec-14 RM Price Drivers MEG CFR AP Contract $/ton PTA NEA CFR Contract $/ton Jan-15 Jan-1