Kordsa Teknik Tekstil A.s. · BIST:KORDS

Kordsa Teknik Tekstil A.s — FY2024 Earnings Presentation

16 slides from Kordsa Teknik Tekstil A.s's earnings presentation, Mar 3, 2025

  1. Slide 1: YE’24 Financial Results

    Kordsa.com YE’24 Financial Results Earnings Release Mar 3 2025

  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. YE’24 Highlights Market Dynamics Key Financials 04. What’s Next 3

  4. Slide 4: YE’24 Highlights

    4 YE’24 Highlights REVENUE OPERATING Adjusted EBITDA* TIRE REINFORCEMENT CASH FLOW * %1 volume growth in line with the market 929 56 MUSD 56 MUSD * Continued capacity surplus and price pressure from Asia MUSD 6.9% Margin * Non-recurring operational impacts from inventory All Hard- cleanup Currency A

  5. Slide 5: Asian material flow has been increasing throughout all value chain (especially China)

    5 Asian material flow has been increasing throughout all value chain (especially China) 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

  6. Slide 6: Boeing slow ramp-up, automotive slowing down relatively in 2025

    6 Boeing slow ramp-up, automotive slowing down relatively in 2025 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 4

  7. Slide 7: Non-recurring inventory write offs affected last quarter operational performance

    Non-recurring inventory write offs due to NRV and slow moving inventory clearance in both tire and composite effected the last quarter operational performance Quarterly Quarterly Quarterly Net Sales (M$) Adjusted EBITDA (M$) Net Income (M$) Tire Composites Other 231 234 235 235 225 12 7 7 8 10 46 50

  8. Slide 8: Our aim is to build balanced portfolio between tire and composite reinforcement

    8 Our aim is to build balanced portfolio between tire and composite reinforcement Segment Reporting Results YE, 24 Revenue Split YE, 23 Revenue Split By Region By Product By Region By Product Other; Other; Asia; 4% 3% Asia; 22% Composite; 24% Composite; 20% EMEA; 20% EMEA; 38% 37% SA; 10% SA; 10% TC

  9. Slide 9: Hard Currency Revenue

    9 Hard Currency Revenue Other Depreciation FX exposure 2% 5% 4% 1% Distribution & 8% Packaging 5% 25% 12% 5% Costs Energy 7% YE’24 Revenue (YE’24) Expenses Expenses by (YE’24) Nature 60% Raw Materials 76% 75% Personel 16% Expenses US $ EUR US $ TL EUR IDR BRL Baht • Hard currency revenues • Ability

  10. Slide 10: Continuing price pressure coming from Far-East competitors

    10 Continuing price pressure coming from Far-East competitors Sales Bridge – MUSD 1,003 5 -11 2 929 -71 Product shift to non- aerospace industry and Price pressures slowdown in EU from Asian automotive market competitors YE'23 Composite Tire* Volume Tire* Price/Mix Other YE'24 * Tire Reinforcement S

  11. Slide 11: Non-recurring impact of slow moving inventory adjustments (EBITDA Bridge)

    11 Non-recurring impact of slow moving inventory adjustments due to shelf-life of materials and NRV based on lower market prices EBITDA Bridge (MUSD) 86 7 9 12 11 8 6 70 4 4 7 20 56 8 2 2023 Adj. Tire Tire Savings Inflation/FX Savings Inflation/FX FPDE Donation Composite Other 2024 Adj. Tire Comp. 2

  12. Slide 12: Balance Sheet

    12 Balance Sheet TL Financials (MTL) USD Financials (MUSD)  YE’23 YE’24   YE’23 YE’24  Cash and Cash Equivalents 1,712 4,257 2,545 58 121 63 Account Receivables 4,774 5,690 916 162 161 -1 Inventories 6,840 7,474 634 232 212 -20 Other Current Assets 1,416 1,205 -210 48 34 -14 PPE & Intangibles 13

  13. Slide 13: Focusing on improving working capital and net debt level

    13 Focusing on improving working capital and net debt level Trade Working Capital (M$) Net Debt / Adjusted EBITDA* 6.7 326 -44 M$ 5.1 4.6 3.9 4.0 296 280 302 282 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Amount Avg. Int. Rates Net Debt (M$) M$ 31.12.2023 31.12.2024 % % -14 M$ 391 N

  14. Slide 14: What’s Next

    14 What’s Next CASH MANAGEMENT & IMPROVING NET DEBT LEVEL COST IMPROVEMENT FOCUS CONCENTRATE VALUE-ADDED PRODUCTS in COMPOSITE IMPROVEMENT in OPERATIONAL PROFITABILITY of COMPOSITE BUSINESS

  15. Slide 15: Thank You

    Thank You THE REINFORCER

  16. Slide 16: Price competition from Far-East and late aerospace recovery affecting profitability

    16 Price competition from Far-East in tire reinforcement and the late recovery of aerospace in the composite affecting our profitability levels USD Financials (MUSD)  YE'23 YE'24  1Q’24 2Q'24 3Q'24 4Q'24 Sales 1,003 929 -7.4% 234 235 235 225 Gross Profit 150 120 -19.9% 40 32 33 17 Gross Margin (%)

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