Kordsa Teknik Tekstil A.s. · BIST:KORDS

Kordsa Teknik Tekstil A.s — Q3 2024 Earnings Presentation

16 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Oct 31, 2024

  1. Slide 1: 3Q’24 Financial Results

    Kordsa.com 3Q’24 Financial Results Earnings Release Oct 31 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. 3Q’24 Highlights Market Dynamics Key Financials 04. What’s Next 3

  4. Slide 4: 3Q’24 Highlights

    4 3Q’24 Highlights REVENUE OPERATING Adjusted EBITDA* TIRE REINFORCEMENT CASH FLOW * No material change in volume-basis 235 14 MUSD 18 M$ * Price competition from Far-East MUSD 7.6% Margin * No material change in raw material prices All Hard- Currency EBITDA** : 16 M$ COMPOSITE REINFORCEMENT * Paral

  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$) Composite Textile Market (M$) 5,302 5,675 2,820 2,992 4,113 4,583 4,922 1,790 2,475 2,586 3,217 2,213 296 292 806 11% 286 804 12% 286 798 8% 7% 286 793 7% 7% 7% 511 6% 530 28% 2,7% 489 252 1,090 24% 478 430 1,0

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

    7 Price competition from Far-East in tire reinforcement and the late recovery of aerospace in the composite affecting our profitability levels USD Financials (MUSD)  3Q'23 3Q'24  4Q'23 1Q'24 2Q'24 3Q'24 Sales 241 235 -2.5% 231 234 235 235 Gross Profit 37 33 -11.1% 35 40 32 33 Gross Margin (%) 15.2

  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 competitive market, sustain volume level 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 3Q, 24 Revenue Split 3Q, 23 Revenue Split By Region By Product By Region By Product Other; Other; 2% 2% Asia; Asia; Composite; 22% 24% Composite; 22% EMEA; EMEA; 21% 37% 35% SA; 10% SA; 10% TC

  10. Slide 10: Hard Currency Revenue

    10 Hard Currency Revenue Other Depreciation FX exposure 2% Distribution & 8% 4% 1% 5% 5% Packaging 23% 5% 12% Costs Energy 7% 3Q’24 Revenue (3Q’24) Expenses Expenses by (3Q’24) Nature 61% Raw Materials 76% 15% 77% 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) 2.0 14.0 2.0 -1.5 -2.3 -4.0 -2.0 * Cost pressure from TR inflation * Imbalance between USDTRY and inflation * Price competition – low profitability * Savings from energy costs, especially in EMEA * Con

  12. Slide 12: Material effects coming from EBIT level

    12 Material effects coming from EBIT level Net Income Bridge (MUSD)

  13. Slide 13: Balance Sheet

    13 Balance Sheet TL Financials (MTL) USD Financials (MUSD)  Dec’23 Sep’24   Dec’23 Sep’24  Cash and Cash Equivalents 1,712 2,179 467 58 64 6 Account Receivables 4,774 6,208 1,434 162 182 20 Inventories 6,840 8,790 1,950 232 258 25 Other Current Assets 1,416 1,884 468 48 55 7 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$) Net Debt / Adjusted EBITDA* 64 M$ 5.1 4.6 280 302 3.9 4.0 262 3.6 296 326 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Amount Avg. Int. Rates 81 M$ M$ 31.12.2023 30.09.2024 % % 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

  16. Slide 16: Thank You

    Thank You THE REINFORCER

Kordsa Teknik Tekstil A.Ş. — Q3 2024 Earnings Presentation on 6ix