external - kordsa · 2019-10-10 · external disclaimer the information and opinions contained in...
TRANSCRIPT
External
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 correctness. No undue reliance may be
placed for any purposes whatsoever on the information
contained in this presentation or on its completeness,
accuracy or fairness. This document may contain forward-
looking statements by using such words as "may", "will",
"expect", "believe", "plan" and other similar terminology that
reflect the Company management’s current views,
expectations, assumptions and forecasts with respect to
certain future events. As the actual performance of the
companies may be affected by risks and uncertainties, all
opinions, information and estimates contained in this
document constitute the Company’s current judgment and
are subject to change, update, amend, supplement or
otherwise alter without notice. Although it is believed that the
information and analysis are correct and expectations
reflected in this document are reasonable, they may be
affected by a variety of variables and changes in underlying
assumptions that could cause actual results to differ
materially.
The Company does not undertake any obligation, and
disclaims any duty to update or revise any forward
looking statements, whether as a result of new
information or future events. Neither this document
nor the information contained within can construe any
investment advice, invitation or an offer to buy or sell
the Company and/or Its group companies’ shares.
The Company cannot guarantee that the securities
described in this document constitute a suitable
investment for all investors and nothing shall be taken
as an inducement to any person to invest in or
otherwise deal with any shares of the Company and
its group companies. The information contained in
this document is published for the assistance of
recipients, but is not to be relied upon as authoritative
or taken in substitution for the exercise of judgment
by any recipient. You must not distribute the
information in this document to, or cause it to be used
by, any person or entity in a place where its
distribution or use would be unlawful. Neither the
Company, its board of directors, directors, managers,
nor any of Its employees shall have any liability
whatsoever for any direct or consequential loss
arising from any use of this document or its contents.
2
External
Global Footprint
Reinforcing 1 out of every 3 automobile tire as well as 2 out of every 3 aircraft tires globally
4 continents12 facilities
4,500+employees
2 R&D Centers
786patent
application
185patents
187inventions
3External
External
Kordsa in Brief
TargetMarkets
Tire Reinforcement Technologies Composite Technologies
• Strategic supplier of all prominent tire makers
• Global #1 in NY66 TCF
• Global #3 in PET TCF
• Pioneer in open innovation: Composite Technologies Center of Excellence
• Carbon fiber, aramid, hybrid fabrics, and pre-pregs, highvalue added thermoplastic and thermoset resins
• Strategic supplier of aerospace industry with the recent acquisitions.
Construction Reinforcement Tech.
• With Kratos in construction reinforcement Kordsa offers;
• High load carrying capacity
• Long-lasting durability
• Prevention of crack formation
• Ease in application and money saver• Product range: Polypropylene monafilament
investment in 2018
4
External
Financial Overview
5
Asia26%
EMEA30%
NA33%
SA11%
By Region
1H 2019 Revenue Split
By Product
Tire Reinforcement83.7%
Composite12.7%
Other3.6%
TL million USD million
2018 1H 2019 1H 2018 1H 2019 1H
Sales 1,538 2,586 377 461
EBITDA 263 407 64 73
EBITDA Margin 17.1% 15.8% 17.1% 15.8%
External
Milestones
2017 201920182016201520142008
Kordsa Growth in Asia;
Indonesia, Thailand, China
Start up of Indonesiaexpansion Best R&D Center
Sustainability Report received 2 Gold Awardsfrom LACP
Brazil GPTW 4 years in a row
100 Fastest-Growing Companies in Indonesia
Second R&D Center @Composite Technology Center of Excellence
AS9100 RevDCertified
Merging Acqusitions
Global Technology Center in Izmit
20062005
Member of the TURQUALITY Global Brand Programme
1973
Commercialisationof Kratos
InnovationStrategyChampion
Composite Technology Center of Excellence
Fortune Global 100The
Reinforcer
Acquisition of FabricDevelopment, TextileProducts andAdvanced HoneycombTechnologies
Acquisition of Axiom Materials
6
External
Strategy House
•New Products for High Performing Tires
•Profitable Growth for Tire Industry
•Competitive Cost
•Product and Service Quality Leadership
•Lean and Agile Processes and Teams
•Reinforcements for Composites Industry
•Reinforcements for Construction Industry
•Fibers for Alternative/ Adjacent Industries
Pillar Initiatives
Foundations
Our Values
SHE Ethics Customer Focused
Courage Passion CollaborationContinuous Improvement
7
External
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Inventions Patent Applications Patents Granted
Patent Growth
Potential to create value by licencing technology
187INVENTIONS
786TOTAL APPLIED
185GRANTED
8
External
Technology Leadership
A v e r a g e R & D e x p e n d i t u r e p e r y e a r a p p x . U S D 1 0 - 1 2 m ( i n c l u d i n g c a p i t a l i z e d R & D )
S t r o n g f o c u s o n R & D C u tt i n g e d g e n e w p r o d u c t s
S e l e c te d c o l l a b o r a t i o n s * L e a d e r s h i p i n I n n o v a t i o n a n d Te c h n o l o g y
Rolling resistance improvements through higher modulus for high performance tires
Protection layer for truck & bus tires; reduces tire weight
7% higher tenacity and better fatigue performance for aircraft tires (bias)
10% higher dimensional stability for better tire performance (improved labeling)
T802
4G PET
• Best performed R&D center award of the year 2014 in allindustries.
• R&D Center ranked best in textile category for the last 6 yearsby the Turkish Ministry of Science, Industry and Technology
• Innovation Strategy Champion Turkish ExportersAssembly/InovaLeague
• Among the national top 6 institutions of R&D patent registration in Turkey.
Top 6
1
1
* includes both, universities as well as individual academics from the names institutions
In 2018, sales revenue of new products totaled USD 64 million.
The R&D center in Izmit develops new products, processes and technologies in the tire and construction reinforcement technologies.
The R&D Center at Composite Technologies Center of Excellence develops innovative composite technologies for the aerospace, defense and automotive industry.
9
External
Over view of Tire Reinforcement Value Chain
NY66 yarn
PET yarn A tire is a highly complex composite with c.40 components working under dynamic conditions
NY66 typically used in cap plies; PET typically used in radial plies
Spinning Twisting Dipping
Yarn
WeavingPolymerisation Greige Fabric
YARN
PRODUCTS
NY66
HMD
Adipic Acid
NY66 Flake
HMLS PET
PET Chip
MANUFACTURINGRAW MATERIALS
Kordsa products
10
External
Tire Reinforcement Technologies
Main use
Kordsa
Kordsastrategic
initiatives
NY66 tire cord
• Cap ply in radial tires
PET tire cord Hybrids / other cords
• Radial tire reinforcement • All tire types
• Global #1 producer
• Global #1 provider of aircraft tire textiles
• Global #2
• Leadership position in value-add segments• Market and technology leader with key
brands Capmax, Twixtra and Monolyx, Green TCF
• Grow in technologically more advanced tire segments
• Maintain competitive global footprint
• Capacity expansion in Indonesia and Turkey
• Further investments in technology leadership and production process
• Next generation PET yarns
• Introduction of three key brands
• Sub-licencing business models
• Industry co-operations
Source: Arthur D. Little strategy report (2013)
11
External
Composite Parts Raw materials Intermediates
Ko r d s a f a b r i c s a n d p r e p r e g s o f f e r c u tt i n g e d g e s o l u t i o n s f o r a e r o s p a c e & a u to m o t i v e m a r ke t s
Precursors & Fibers: • PAN Precursor
• Carbon Fiber
• Aramide
• Glass Fiber
Resins:• Phenolic
• Epoxy
• Cyanate ester
Twisting
• Composites use in aerospace & automotive is increasing, due to improved material properties and weight savings over conventional materials
• «Lightweighting» is a major theme, driven by emission regulations as well as fuel-efficiency needs
Weaving
Prepreg
12
Overview of Composite Value Chain
External
Composite Technologies
M i d - te r m o p p o r t u n i t y
• Composite Technologies Center of Excellence (CTCE) opened in 2016 (~30 MM$ investment)
• Manufacturing facility at the CTCE is certified AS9100 - quality and risk management in aerospace and defense industry
• Ongoing development programs & joint projects with aerospace & automotive customers aas well as major universities in both Turkey and Europe.
• With the acqusitions in the US, became strategic supplier of aerospace industry.
• Our target markets are Aerospace, Automotive and Rail Systems
C u r r e n t s ta t u s B u y & B u i l d
• Acquisition of FDI & TPI in the US • A leading supplier of advanced composite fabrics for the commercial aviation
industry• Only supplier in lightning strike fabrics
• Acquisition of Advanced Honeycomb Technologies in the US• Manufactures a wide range of nomex honeycomb core for aerospace
• Acquisition of Axiom Materials in the US• Only worldwide qualified manufacturer of Oxide-Oxide ceramic matrix
composites.
• Actively considering organic and inorganic growth options
External 13
External
Construction Reinforcement Technologies
P r o j e c t s
• KraTos Macro & Micro Synthetic Fibers are approved and applied in over 50 significant superstructure, industrial and infrastructure referenceprojects.
• Non-conductivity concrete reinforcement applications with KraTos Synthetic Fiber Reinforcements are approved in significant government-fundedinfrastructure projects.
• "KraTos CEM: Bagged Cement With Pre-Dosed KraTos Micro Fiber Reinforcement" projects development studies continue.
• Given the technical and test equipment capabilities at Kordsa İzmit, R&D Concrete Lab; "Technical Project Report Services" are available forinfrastructure projects.
3rd Bosphorus Bridge Toll Booths and
Electronic Pass Areas (Non-Conductivity
Concrete Reinforcement)KraTos Macro Reinforcement
Samsun 2nd and 3rd
Stage Light Railway Track Slab
(Non- Conductivity Concrete
Reinforcement)KraTos Macro Reinforcement
Asyaport Tekirdağ PortKraTos Macro Reinforcement
CurrentStatus
External 14
External
Sustainability Performance in 2018
15
Corporate Profile Sustainability Profile
Social
Economic
Environmental
11 Production Plants5 Countries
4,195 Employees
45 Years
200,401 Training Hours
USD 1.82 millionSavings from Reuse of Materials
USD 789, 900 Value of
Our Environmental Investments
0 Fatal Occupational Accidents and Diseases
3.04 millionNumber of Reused Paper Tubes
Environmental Investments76% Training, 9% Waste Disposal
7% Waste Recycling, 7% Consultancy1% Emissions Management
37% Women, 63% Men(White-Collar Employees)
Regional Revenue SplitEMEA 35% North America 24% Asia Pasific 29% South America 12%
88.8% Operating Profit Growth
35.6 Avarage Number of Training Hours of Our Employees
TL 3,947 million Turnover
Click here to reach Sustainability Reports.