Kordsa.com

YE'23 Financial Results

Earnings Release

March 21 2024

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AGENDA

01.

YE'23 Highlights

04.

What's Next

02.

Market Dynamics

03.

Key Financials

4

YE'23 Highlights

COMPOSITE REINFORCEMENT

  • * Strong performance with growing Microtex

  • * Recovering demand in aviation sector

  • * Focus on product/sector diversification (non-aerospace)

* Tough competition from Far-East

TIRE REINFORCEMENT

* ~ 9% shrinkage in the industry

5

Tire production decreased by 8.6% in 2023E

6

Positive Outlook for the Composite Market 2023 and Beyond

* Source:https://bit.ly/3ABbY9f

7

Improving EBITDA margin 2H'23 with operational precautions

Financials (MUSD)

YE'22

YE'23

D

1Q'23

2Q'23

3Q'23

4Q'23

Sales

1,154

1,003

-13.1%

276

255

241

231

Gross Profit

210

150

-28.6%

41

37

37

35

Gross Margin (%)

18.2%

15.0%

-3 pts'

14.8%

14.4%

15.2%

15.3%

OPEX (%)

9.9%

10.7%

1 pts'

10.2%

10.8%

10.5%

11.6%

Operating Profit

103

52

-49.2%

14

11

14

13

Operating Profit Margin (%)

8.9%

5.2%

-4 pts'

5.1%

4.2%

5.7%

5.5%

EBITDA

135

83

-38.2%

23

19

22

19

EBITDA* Margin (%)

11.7%

8.3%

-4 pts'

8.3%

7.5%

9.2%

8.2%

Net Income

94

17

-82.2%

5

-2

3

12

Net Income (%)

8.2%

1.7%

-6 pts'

1.7%

-0.8%

1.3%

5.0%

8

Strong recovery in the composite segment through product diversification in non-aerospace Sales Bridge - MUSD

%18 shrinkage in tire reinforcement in line with market demand

9

Our aim is to build balanced portfolio between tire and composite reinforcement

Segment Reporting Results

  • * Balanced-portfolio based on the regions

    YE, 23 Revenue Split

    By Region

  • * High competition especially in EMEA and APAC

  • * Low commodity prices leads price adjustments

By Product

10

Hard Currency Revenue

FX exposure

US $EUR

  • • Hard currency revenues

    US $IDR

  • • Ability to pass through raw material price volatility:

    TLBRL

    (Revenue - raw material costs) tracked as a KPI by sales team

  • • FX exposure on costs -> EM footprint on local costs + hard currency priced raw materials

  • • Benefit from US$ appreciation vs. TL, IDR and BRL

EURBaht

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Kordsa Teknik Tekstil AS published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2024 13:57:03 UTC.