Post on 02-Apr-2018
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Financial Results
Analysts Conference Call
This presentation is based on the Company financial reports.
There is no data in this presentation that isn’t presented in the public financial reports.
If there is any discrepancy between this presentation and the data in the financial report that was issued to the Israeli SEC and the TASE, the valid data is the one which appears in the formal reports.
This presentation is provided for information and as a matter of record only. It does not constitute an offer to sell or a solicitation of an offer to buy or sell securities or other financial instruments in any jurisdiction or any advice or recommendation with respect to such securities or other financial instruments of the company.
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AVGOL Nonwovens
Analysts Conference Call
Agenda
• Key Highlights
• Financial highlights
• Revenue Breakdown
• COGS Breakdown
• Cash Flow
• Balance Sheet
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--------------------------- AVGOL Nonwovens
Analysts Conference Call
Presentation Team
Mr. Shlomo Liran
CEO
Mr. Shachar Rachim
CFO
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-------------------------- AVGOL Nonwovens
Analysts Conference Call
Financial Highlights
USD Million
Q1 2012 % Q1 2013
Revenue, net 75.3 12% 84.2
Gross Profit 16.7 -21% 13.1
22.2% 15.6%
EBIT 10.0 -28% 7.2
13.3% 8.5%
Net Profit 9.1 -64% 3.3
12.1% 3.9%
EBITDA 14.5 -10% 13.1
19.2% 15.5%
31-12-12 31-3-13
Total Assets 422.4 7% 452.2
Net Debt 149.7 14% 170.6
% Net Debt/ Total Assets 35.4% 37.7%
Net Debt/EBITDA 2.62 3.07
Quarter
* Company’s Net Profit before allocation to majority and minority shareholders.
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l Employed Ratio
1.30x
1.20x
0 1.10x
·.;::i 1.00x "' a:
w 0 .90x u -;;;, QI 0.80x iii Ill
0.70x 0.63x 0 .59x 0.60x
0 .S0x
2009 2010 2011 2012 Ql -13 ~ Avgo l _._ Pegas - Providenc ia
* PGI - Sales/CE ratio at 2.12 {2009), 2. 79 {2010), 2.57 {2011), 2.09 (2012), 2.04 (2013)
ROCE
17.5%
15.5%
13.5%
w 11.5% u 0 a: 9 .5%
'*- 7 .5%
5 .5%
3.5%
1.5%
2009 2010 2011 2012 Ql -13
~ Avgo l _._ Pegas - Providenc ia ~ PGI
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Net Debt/EBITDA 5.00 ~------------------------
4.50 +-------------------------
0 4.00 t+==============~:~;~:=~~;~;;::2~~~ ! 3.50
t:l 3.00 +------- ~......-- -~ !!!..--= '--------------= --- -.,....1-1--
";i;- L ~~ ::;;;;~r:IME~ ~ ~~"""""""'"""""""'~::::::=----~ 2.50 Ill
QI :I C QI > QI a: E 0 .. .... '*-
2.00 +-- -L+<W----"""",llllliii.:::-f: :--=-:::-- -------------
1.50 +-- ...l....:~ "'-----------------------
1.00 +-----~----~----~---~~---~
2009 2010 2011 2012 Ql-13
~ Avgo l -a- Pegas - Providenc ia* ~ PGI*
% EBITDA * from Revenue
34.0%
29.0 %
24 .0%
19.0%
14.0 % 14.1°0
9.0% 10.1%
2009 2010 2011 2012 Ql-13 ~ Avgo l _._ Pegas - Providencia* ~ PGI*
* Providencia, PGI - Adjusted EBITDA as reported by the companies
AVGOL Nonwovens
Analysts Conference Call
This presentation is based on the Company’s financial reports. If there is any discrepancy between this presentation and the data in the financial reports, the valid data is the one which appears in
the formal reports of the companies. Financial Results Currency translated by Avgol to USD - PEGAS in EUR, PROVIDENCIA in BRL and there might be foreign exchange translation impacts.
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175
170
165
160
155
150
145
140
135
130
125
175
170
165
160
155
150
145
140
135
130
125
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- Net Debt - Net Debt/EB/TOA
3.50
3.00
2.50
2.00
1.50
I 1.00
0.50
Q4/11 Ql/12 Q2/ 12 Q3/ 12 Q4/12 Ql/ 2013
- Net Debt - Net debt to Asset
42%
37%
32%
27%
22%
Q4 2011 Ql 2012 Q2 2012 Q3 2012 Q4 2012 Ql 2013
AVGOL Nonwovens
• Net Debt/ EBITDA ratio increased to 3.07
during Q1/13.
• The main increase is due to the fact that
the new two lines are not being utilized
fully in the last 4 quarter that the EBITDA
is related for.
Analysts Conference Call
Investments & Net Debt
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L- ------------------------- AVGOL NonwovE '{IS
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Analysts Conference Call
Key Highlights
Financial
The Company is continuing to grow, both quantitatively and financially. The Company’s
revenues in the first quarter totaled approximately USD 84.2 million, compared to USD 75.3
million in the corresponding quarter last year
The quarter was characterized by sharp price hikes for raw materials in North America,
which affected the quarter’s profitability.
The gross profit totaled approximately USD 13.1 million (15.5% of the total income),
compared to gross profit of about USD 16.7 million in the corresponding period last year,
(22.2% of the total income).
Avgol’s EBITDA totaled approximately USD 13.1 million (15.5% of the total income),
compared to EBITDA of about USD 14.6 million in the corresponding period last year (19.4%
of the total income).
Our acquisition of Cleaver, and its assimilation in our Company has generated savings,
which is expressed by a decrease in marketing and selling expenses.
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Analysts Conference Call
Key Highlights
Market & Business
• The Company is continuing to show an uptrend in sales, primarily due to the Company’s
two new production lines at our plants in China and in the United States.
• Operating efficiency is also improving at the plant in the United States.
• Our plant in China is continuing to grow – the new production line has begun operating at
partial output and we expect to increase the line’s output from quarter to quarter so that
this third new production line in China will reach its full potential by the beginning of 2014.
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Ql 2012 COGS Breakdown 7%
• Materials 7% • Labor
• Electricity & Local Taxes
• Maintenance. & Insurance
• Freight
• Depreciation
Ql 2013 COGS Breakdown 8%
• Materials 6% • Labor
• Electricity & Local Taxes
• Maintenance. & Insurance
• Freight 75% • Depreciation
-------------------------- AVGOL Nonwovens
•
increased from 74% to 75.1% ,
that reflect 28% cost increase
Q1/13 vs Q1/12 .
Materials share in the COGS
Analysts Conference Call
Cost of Goods Sold (COGS)
Source: Company Financial Reports
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------------------------- AVGOL Nonwovens
Analysts Conference Call
Cash Flow
USD Million 2012 2013
Current Operations
Net Income 9,104 3,257 -64%
Depriciation/Amortization 4,443 5,859 32%
Other non CF income/expensses (1,255) 1,363
Changes in Working Capital 4,365 (12,367)
Net CF from investment activities 16,657 (1,888) -111%
Investment Activities
CAPEX (5,063) (1,104) -78%
Short-term deposits 922 -
Acquisition of intangible assets (429) (38)
other - 80
Net CF from investment activities (4,570) (1,062) -77%
Financing Activities
Decrease in ST bank loans (11,871) (2,153)
Repayment of LT Bank loans (3,695) (938) -75%
Receipt of LT bank loans 25,000 -
Receipt of LT Bonds 42,364
Dividend paid (12,200)
Purchase of minority shares in Subsidiery (6,668)
other 67
Net CF from financing activities 20,472 20,472
Increase in cash & cash equivalents 21,521 17,522 -19%
Closing Balance 40,744 72,655 78%
Q1
Source: Company Financial Reports ST = Short Term; LT = Long Term
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Analysts Conference Call
Balance Sheet Highlights
USD Million
31-3-12 % Change 31-3-13
Assets
Cash and cash equivalents 40.7 79% 72.7
Deposit 1.6
Inventories 36.7 28% 47.1
Trade receivables 44.1 29% 56.7
Other current assets 10.1 12% 11.3
Derivatives 12.5 18% 14.8
Fixed Assets net 245.4 0% 245.5
Other Non-current assets 6.8 -40% 4.1
397.9 14% 452.2
Liabilities& Equity
Bank Loans & Bonds 196 32% 258.1
Trade payables 31.7 19% 37.6
Other current liabilities 23.1 -38% 14.4
Df Tax Liabilities 22.9 8% 24.7
Other Non-current liabilitis 0.3 -33% 0.2
Equity 123.9 -5% 117.2
397.9 14% 452.2
Source: Company Financial Reports
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