Kimteks Poliuretan Sanayi Ve Ticaret As · BIST:KMPUR
Kimteks Poliuretan Sanayi Ve Ticaret As — 9M 2023 Earnings Presentation
43 slides from Kimteks Poliuretan Sanayi Ve Ticaret As's earnings presentation, November 2023
Slide 1: 2023 9-Month Business Results Investor Presentation
KİMTEKS POLİÜRETAN SANAYİ VE TİCARET A.Ş. and its SUBSIDIARIES 2023 9-Month Business Results Investor Presentation November 2023
Slide 2: Overview
1 \ Overview
Slide 3: Why Kimpur?
WHY KİMPUR? OUR VISION Becoming one of the world's top 10 players in polyurethane systems with innovative products and extraordinary solutions ➢ Turkey's first domestic capital polyurethane systems manufacturer that blends "Advanced Technology" systems based on "Smart Business Model" with agile & le
Slide 4: Kimpur in all areas of life
KIMPUR IN ALL AREAS OF LIFE SOLAR PANEL SYSTEM ROOF INSULATION (Spray Systems) ROCK WOOL / EPS ADHESIVE FRAME (Wood Imitation) SANDWICH PANEL (PUR/PIR) BED HEAD (Wood Imitation) OFFICE CHAIR VISCO PILLOW VISCO BED COOLING SYSTEMS CAR SEAT (HR Foam Systems) CEILING TILE (Semi-Rigid) GARAGE DOOR WATER
Slide 5: Our global activities
OUR GLOBAL ACTIVITIES Company Country Capital Share (%) Field of Activity Kimpur Russia Russia %100 Sales, warehousing & distribution service Wholesale of plastics and rubber in primary Kimplast Turkey %83 form Kimpur Russia Kimpur 25 kton capacity polyurethane production, Kimpur Latvia %75 Europe E
Slide 6: Numbers at a glance
NUMBERS AT A GLANCE: 40 185 kton 35 kton 10 50+ 288 %26 600+ ANNUAL PRODUCTION ONGOING VISION TO BE ONE OF EXPORTS TO EMPLOYEE EXPORTS / PRODUCT EXPERIENCE INVESTMENT IN THE 10 BIGGEST COUNTRY (32 R&D) DIVERSITY CAPACITY TOTAL GLOBAL PLAYERS WITH • 130 kton Gebze DÜZCE TONNAGE A TOTAL CAPACITY OF •
Slide 7: Supply chain & logistics management
SUPPLY CHAIN & LOGISTICS MANAGEMENT ▪ Turkey's largest acquisition volume in the sector Kimpur Logistics Warehousing Network ▪ ~90% import rate in production inputs ▪ European and Far Eastern producers in raw material supply ▪ Proactive raw material forecasting & cost studies in line with SAP Abbrev
Slide 8: Our Strategic Priorities
2 » Our Strategic Priorities
Slide 9: Prominent investment elements
PROMINENT INVESTMENT ELEMENTS Reliable Solution Partnership R&D Center & Innovative Applications Leading the Industry Strong Domestic & Export Growth Strategy with Wide Product Range Our Strategic Projects Environmental and Social Sustainability Sustainable Enlargement Policies Strong Financial Perf
Slide 10: Reliable Solution Partnership
i. Reliable Solution Partnership
Slide 11: Reliable solution partnership
RELIABLE SOLUTION PARTNERSHIP ProductManagement Human Resources Supply Chain Management ❖ Brand Awareness ❖ Global and Agile Organizational Structure ❖ Competitive Product Lead Time ❖ Customer Loyalty ❖ Sectoral Diversity ❖ Expert and Experienced R&D Team ❖ Strong Supplier Relations ❖ Wide Product R
Slide 12: R&D Center & Innovative Applications Leading the Industry
ii. R&D Center & Innovative Applications Leading the Industry
Slide 13: Pioneer in the sector with its R&D center
PIONEER IN THE SECTOR WITH ITS R&D CENTER Kimpur Turkey's Polyurethane R&D Power Soles, Slippers, Boots, etc. for Footwear Industry for Soles, Slippers, Boots etc. for Footwear Industry Development of Insulation Raw Materials for White Goods, Building-Construction • Ministry of Science, Industry and
Slide 14: Pioneer in the sector with its R&D center
PIONEER IN THE SECTOR WITH ITS R&D CENTER 19 Registered Trademark Kimpur Turkey's Polyurethane R&D Power Participation in European Union Among the 250 companies with the highest R&D and SAYEM Projects on Bio, Recycling and expenditures Sustainability with leading companies and universities in the fi
Slide 15: Strong Domestic & Export Growth Strategy
iii. With Wide Product Range Strong Domestic & Export Growth Strategy
Slide 16: Global polyurethane market
GLOBAL POLYURETHANE MARKET Global Polyurethane Market Volume Factors/Trends Affecting Global Market Volume ✓ Polyurethane has become an important part of many sectors around the world thanks to its versatile use ✓ Increasing demand for lightweight, durable and high- performance products in many area
Slide 17: Polyurethane market in Turkey
POLYURETHANE MARKET IN TURKEY YURT İÇİ PU KAPASİTESİ 2018 2019 2020 2021 2022 2023 T Rigid 215.490 215.420 207.110 216.210 223.980 240.000 Flexible 149.130 143.800 138.100 144.890 149.980 147.000 Elastomers 101.105 110.822 119.665 126.284 130.519 128.000 Coatings 62.590 63.290 62.200 64.709 66.561 6
Slide 18: Strong positioning in different sectors with diversified revenues
STRONG POSITIONING IN DIFFERENT SECTORS WITH DIVERSIFIED REVENUES 2023 2023BREAKDOWN OF 3Q 3Ç SATIŞLARIN SALES DAĞILIMI Satışlar (Bin Ton) 2021 2022 22/21 % 2022 3Ç 2023 3Ç Fark % 2022 9A 2023 9A Fark % Yurt İçi 64,7 71,5 10,5% 15,5 27,3 76,6% 50,5 79,3 57,2% Domestic Yurtiçi İhracat Export Ayakkabı
Slide 19: Kimpur product groups
KIMPUR PRODUCT GROUPS Sales Breakdown of Product Groups by Year, Quantity (%) 1,1% 1,1% 0,2% 0,5% 1,4% 1,5% 1,7% 2,2% 1,1% 3,0% 1,5% 2,3% 7,8% 5,5% 5,4% 4,3% 3,3% 6,8% 7,8% 14,6% Abbreviations 41,3% 36,8% 37,4% 28,0% 46,4% 44,7% 48,9% 43,3% 2020 2021 2022 2023 9A Flexible Polyester Case Othe Rigid R
Slide 20: Rigid foam systems (Rigid)
RIGID FOAM SYSTEMS (RIGID) ▪ Two-component rigid foam systems for insulation purposes for Rigid Foam Systems Sales Amount (Ton) insulation panel and White Goods sectors • The first component is a physical mixture of polyether polyols, catalyst, surfactant, water and/or blowing agents called Polymix.
Slide 21: Shoe & slipper systems
SHOE & SLIPPER SYSTEMS Sales Quantity of Shoe Systems (Ton) ▪ Expanded microcellular foams in both ester and ether form for all types of footwear soles, from occupational safety to sports and everyday products 46.011 ▪ KIMfoot® are 3-component Polyester systems: 39.122 • First component Polyester Po
Slide 22: Flexible foam systems
FLEXIBLE FOAM SYSTEMS Flexible Foam Systems Sales Amount (Ton) ▪ MDI based KIMflex® Flexible Foam Systems produced by Kimpur; • HR foam systems, • Viscoelastic systems, • Integral systems 9.150 • They are classified as filter systems. ▪ Systems for the production of flexible foam and integrals used
Slide 23: Special products
SPECIAL PRODUCTS Special Products Sales Amount (Tons) ▪ Polyurethane Systems for elastomeric applications in expanded foams and non-foam structures. 4.656 ▪ Reaction Injection Molding (RIM), Micro-cellular Structural Foam RIM, SRIM (Structural RIM Composites) and low density RRIM (Reinforced RIM) sy
Slide 24: Polyester polyols
POLYESTER POLYOLS Sales Amount of Polyester Polyols (Tonnes) ▪ It manufactures KIMpol® Polyester Polyols consisting of multifunctional combinations of carboxylic acids and 4.274 polyhydric alcohols with various functionalities to offer the best solutions to industries such as the footwear industry (
Slide 25: Raw materials
RAW MATERIALS ® Raw Material Sales Amount (Ton) ▪ The raw materials supplied by Kimpur are collected under Kimraw® product group and used in many different fields 15.715 such as plasticisers, adhesives, construction chemicals and paints, especially polyurethane systems. Abbreviations 8.159 6.905 6.0
Slide 26: Strong export growth strategy (50+ countries)
STRONG EXPORT GROWTH STRATEGY (50+ COUNTRIES) Abbreviations
Slide 27: Strong export growth strategy
STRONG EXPORT GROWTH STRATEGY COUNTRY GROUPS (tons) Share of Exports in Total Sales (tons %) ÜLKE GRUPLARI (ton) 2021 2021 % 2022 2022 % 2022 9A 2022 9A % 2023 9A 2023 9A % CISÜlkeleri CIS Countries 3.250 13,9% 10.870 32,8% 9.012 37,3% 7.830 27,6% 60% African Countries 50% Afrika Ülkeleri 6.208 26,5
Slide 28: Environmental & Social Sustainability
iv. Environmental & Social Sustainability
Slide 29: Sustainability future with Kimpur
Investment Elements SUSTAINABILITY FUTURE WITH KIMPUR Environmental and Social Sustainability For a Sustainable Future OUR JOURNEY OF OUR JOURNEY OF OUR JOURNEY OF We Create Values! ADDING VALUE ADDING VALUE TO ADDING VALUE TO TO OUR NATURE OUR LIFE OUR JOB At Kimpur, we believe that sustainable gro
Slide 30: Sustainability future with Kimpur
Investment Elements SUSTAINABILITY FUTURE WITH KIMPUR Environmental Sustainability Corporate Governance Structure 1. Audit Committee •To monitor and evaluate whether the internal 2. Ethics and Compliance Committee • To conduct an effectiveethics and compliance program processes for risk management a
Slide 31: Sustainability future with Kimpur
Investment Elements SUSTAINABILITY FUTURE WITH KIMPUR Environmental Sustainability Our Commitments International Standards As Kimpur, we aim to carry out activities that benefit the environment and society in all areas we operate. For this purpose, we carry out our work in compliance with certain qu
Slide 32: Completed projects
Investment Elements COMPLETED PROJECTS Environmental Sustainability ➢ 11.6% in 2020 - 7.1% in 2021 Energy Savings ➢ Target of reducing approximately 20% clean energy and 200-250 tons/year carbon emission reduction with the SPP investment ➢ Approximately 55% clean energy and679 tons of carbon dioxide
Slide 33: Ongoing projects
Investment Elements ONGOING PROJECTS Environmental Sustainability ➢ Energy-saving special system studies (2%) ➢ Recycling of polyurethane waste in refrigerator systems and reuse in rigid polyurethane systems ➢ Completion of 30% bio-based system studies in the refrigerator ➢ Recycling of shoe waste a
Slide 34: Sustainable expansion / Düzce investment
SUSTAINABLE EXPANSION / DÜZCE INVESTMENT March 2022: 17.015m2 in Gümüşova OSB Construction Start Date on 17.015 m2 land in Gümüşova OSB End of April 2023: July Completion Construction 2023: Date USD 15 million investment size Phase 1 Production Kimpur Duzce Factory Investment Started ▪ Additional po
Slide 35: Record Profitability & Strong Financial Performance
v. Record Profitability & Strong Financial Performance (2023 9A - Critical Financial Indicators)
Slide 36: 2023: Increased exports & stable growth
2023: INCREASED EXPORTS & STABLE GROWTH Net Sales (Million TL) 7.000,0 +%73 5.807,5 6.000,0 4.890,0 CAGR: %128 1.516 5.000,0 1.594,1 4.000,0 3.365,0 3.000,0 1.121 2.172,7 4.292 2.000,0 552,5 3.295,9 938,8 2.244 1.000,0 292,6 1.620,2 646,1 - 2020 2021 2022 2022 1Y 2023 1Y Yurtiçi Satışlar İhracat * R
Slide 37: 2023 record profit in the first 9 months
2023 RECORD PROFIT IN THE FIRST 9 MONTHS Gross Profit (Million TL) EBITDA (Million TL) 1.200,0 19,3% 1.100,0 17,6% 20,0% 16,3% 20,0% 1.000,0 900,0 10,0% 15,7% 800,0 15,0% 0,0% 700,0 600,0 -10,0% 1.120,0 10,0% 500,0 1.024,9 -20,0% 400,0 -30,0% 528,5 5,0% 300,0 546,8 200,0 -40,0% 100,0 -50,0% - 0,0% -
Slide 38: Strict balance sheet management & healthy financial indebtedness ratios
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS Net Financial Debt (Million TL) Net Working Capital (Million TL) 1,12 1.237 100,0% 1.200 0,77 0,77 1,00 2.000 1.059 0,73 1.000 904 904 34,5% 33,5% 50,0% 805 816 0,50 1.500 800 759 31,4% 31,7% 581 2.109 2.327 0,0% 600 - 1.000 1.9
Slide 39: 2023 3rd Quarter Highlights
2023 3. Quarter ▪ Strong net revenue growth Highlights ▪ Significant growth levels in profitability ▪ Strong balance sheet ratios 2.207 billion TL Net Revenue +88% strong Net Revenue growth vs '22 Q2: 1,177 mTL %17,6 +159% growth in gross profit (388mTL vs 150mTL) Gross Profit Margin 285mTL Net Prof
Slide 40: 2023 9A: Record profitability & strong balance sheet ratios
2023 9A: RECORD PROFITABILITY & STRONG BALANCE SHEET RATIOS 5,807 mTL Net Sales, +73% 4,292 mTL Domestic Sales, +91 1,516 mTL Exports*, +35 vs 2022 vs 2022 vs 2022 • Domestic: +91 • Wide customer portfolio in 6 different • Export to 50+ countries • Exports*: +35 sectors 1.120 mTL Gross Profit, +112
Slide 41: Financial priorities
FINANCIAL PRIORITIES FINANCIAL PRIORITIES ✓ Sustainable profitability growth ✓ Strict balance sheet & business capital management ✓ Positive Free Cash Flow Priority ✓ Proactive currency risk management ✓ Effective financial debt management ✓ Maximum dividend yield
Slide 42: 2024 prospects & opportunities
FINANCIAL PRIORITIES 2024 PROSPECTS & OPPORTUNITIES ✓ Impact of the European energy crisis ✓ Differences in Europe - Far East raw material prices ✓ Increase in demand due to container production after the earthquake ✓ Russian market - opportunities ✓ Newly commissioned R&D projects ✓ We are working
Slide 43: Contact details
CEO: Cavidan Karaca cavidan.karaca@kimpur.com CFO: Zafer Demirel info@kimpur.com zafer.demirel@kimpur.com IR: Damla Mermeroglu damla.mermeroglu@kimpur.com investorrelations@kimpur.com Gebze Fabrika Düzce Fabrika Gaziantep Branch Central Office Sanayi Mah. Modern Sanayi Sitesi 60363 Nolu Cad. Zemin S
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