q1- 2013 financial results - avgol · q1- 2013 financial results ... ----- avgol nonwovens...

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Q1- 2013

Financial Results

May 2013

Analysts Conference Call

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Financial Results


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


Agenda

• Key Highlights

• Financial highlights

• Revenue Breakdown

• COGS Breakdown

• Cash Flow

• Balance Sheet

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Presentation Team

Mr. Shlomo Liran

CEO

Mr. Shachar Rachim

CFO

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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


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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- 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.


Investments & Net Debt

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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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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

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•

increased from 74% to 75.1% ,

that reflect 28% cost increase

Q1/13 vs Q1/12 .

Materials share in the COGS


Cost of Goods Sold (COGS)

Source: Company Financial Reports

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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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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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AVGOL Nonwovens

Financial Results


Thank You

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q1- 2013 financial results - avgol · q1- 2013 financial results ... ----- avgol nonwovens...

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