External

External

Bank

Energy

Sabancı Group

Retail

Industry

Cement

Insurance

2

External

South America13% of 2018 Q3 Sales

4 continents11 facilities

4,500employees

2 R&D Centers

720patent

application

North America22% of 2018 Q3 Sales

APAC29% of 2018 O3 Sales

EMEA36% of 2018 Q3 Sales

185patents

179inventions

Global Footprint

3

External

Target Markets

Tire Reinforcement Technologies Composite Technologies

• Strategic supplier of the Big6 and tire manufacturers with high growth potential in Asia

• Global #1 by revenue/ #2 by capacity @ NY66 TCF

• Global #2 by revenue / #3 by capacity @PET TCF

• Pioneer in open innovation: CompositeTechnologies Center of Excellence

• Carbon fiber, aramid, hybrid fabrics, and pre-pregs, high value added thermoplastic and thermoset resins

• Strategic supplier of aerospace industry with the acqusition of FabricDevelopment, Textile Products and Advanced Honeycomb Technologies.

Construction Reinforcement Tech.

• In construction reinforcement;

• High load carrying capacity

• Long-lasting durability

• Prevents crack formation

• Save time and money• Increasing product range: Polypropylene

monofilament investment commissioned in 2018

Kordsa in Brief

5

External

2016 201820172015201420102008

Kordsa Growth in Asia; Indonesia, Thailand, China

Start up of Indonesiaexpansion

Best R&D Center

Sustainability Report received 2 Gold Awards from LACP

Export Champion

Brazil GPTW 3 years in a row

100 Fastest-Growing Companies in Indonesia in 2016-2017

Second R&D Center @Composite Technology Center of Excellence

AS9100 RevDCertified

Merging Acqusitions

Global Technology

Centre in Izmit

20062005

Member of the TURQUALITY Global Brand Programme

1973

Commercialisationof Kratos

Innovation StrategyChampion

Composite Technology Center of Excellence

Fortune Global 100

The Reinforcer

Milestones

Acquisitionof FDI andTPI

5

Acquisition of Advanced HonecombTechnologies

External

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

MANUFACTURING

Spinning Twisting Dipping

Yarn

WeavingPolymerisation Greige Fabric

YARN

PRODUCTS

NY66

HMD

Adipic Acid

NY66 Salt

NY66 Flake

HMLS PET

PET Chip

RAW MATERIALS

Kordsa products

Overview of Value Chain

6

External 7

•Competitive Cost •New Products for High Performing Tires

•Reinforcements for Composites Industry

•Product and Service Quality Leadership

•Profitable Growth for Tire Industry

•Reinforcements forConstruction Industry

• Lean and Agile Processesand Teams • Fibers for Alternative/

Adjacent Industries

Pillar Initiatives

Foundations

Our Values

SHE Ethics Customer Focused

Open Minded

ResultDriven

Global Collaboration

Continuous Improvement

Strategy House

External

Potential to create value by licencing technology

Patent Growth

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Inventions Patent Applications Patents Granted

179INVENTIONS

720TOTAL APPLIED

185GRANTED

Growth60%

8

External

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 t t i n g e d g e n e w p r o d u c t s

S e l e c t e 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 year2014 in all industries.

• R&D Center ranked best in textile category forthe last 6 years by the Turkish Ministry of Science, Industry and Technology

• Innovation Strategy ChampionTurkish Exporters Assembly/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

Technology Leadership

In 2018, sales revenue of new products is expected to reach USD 60 million. As of 2018 June-end, it amounted to USD 31 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

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 by revenue/ #2 by capacity

• Global #1 in airplane tires

• Global #2 by revenue / #3 by capacity

• 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

• Increase value-add through maximizing in-house NY yarn use

• Capacity expansion in Indonesia and Turkey

• Further investments in technology leadership and production process

• Efficient supply chain management and feedstock sourcing

• Next generation PET yarns

• Introduction of three key brands with significant sales potential

• Potential sub-licencingbusiness models

• Industry co-operations (e.g. DuPont)

Source: Arthur D. Little strategy report (2013)

Tire Reinforcement Technologies

10

External

Composite Technologies

M i d - t e 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 Aviation, Automotive and also Rail Systems

C u r r e n t s t a 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 honeycomb core for aerospace and commercial applications

• Potential M&A targets are always under consideration(Competency fit and development opportunities, market penetration and growth)

10External

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 reference projects.

• Non-conductivity concrete reinforcement applications with KraTos Synthetic Fiber Reinforcements are approved in significant government-funded infrastructure projects.

• "KraTos CEM: Bagged Cement With Pre-Dosed KraTos Micro Fiber Reinforcement" projects development studies continue.

• Kordsa İzmit Plant, R&D Concrete Lab technical and test equipment capabilities have increased. Technical Project Report service will be available for infrastructure 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

12External