Slide 1: Investor Presentation
INVESTOR PRESENTATION - 1
Slide 2: Facts & Figures
Facts & Figures 130 Export countries 10 5.9 manufacturing EGP bn facilities sales 35 230 years showrooms INVESTOR PRESENTATION - 2
Slide 3: Latest updates
Latest updates 13 Manufacturing new looms added 9 New Showrooms opened in Egypt in 2015 Targeting New markets & new clients INVESTOR PRESENTATION - 3
Slide 4: A Vertically-Integrated Model
A Vertically - Integrated Model Controlling supply chain enables greater cost control and production flexibility. From sourcing polypropylene granules, converting them into fibers, spinning and dyeing yarn, to weaving, distributing and delivering the end product. Our domestic retail outlets, our ded
Slide 5: OW Group key milestones
OW Group key milestones 2014 King Tut yarn plant OW China 2006 1998 OWI OW US factory 1994 1991 Sphinx, the US distribution arm EFCO 1987 1981 MAC 1979 OWC INVESTOR PRESENTATION - 5
Slide 6: OW Group's structure
OW Group’s structure INVESTOR PRESENTATION - 6
Slide 7: Revenue Contribution of Main Markets
Revenue Contribution of Main Markets Europe 19% EGYPT 45% America & Canada 27% INVESTOR PRESENTATION - 7
Slide 8: OW: A large player in the Egyptian market
OW: A large player in the Egyptian market Capturing a strong market share in the local market. Sells directly through a network of 230 showrooms. 80k sqm of retail and wholesale selling area. INVESTOR PRESENTATION - 8
Slide 9: OW's long standing position in the US
OW’s long standing position in the US Secured partnership agreements with Tommy Bahama, Pantone and Roger Thomas. America’s most magnificent rug award in Atlanta Floor covering exhibition. Opened corporate showrooms in 2012 in Fifth Avenue, New York and Las Vegas Growing online business with
Slide 10: American & Canadian Retail Partners
American & Canadian Retail Partners Relationships count – Oriental Weavers’ enduring relationships with the world’s best retailers, clients, resorts and other lifestyle centers ensure continued market leadership. INVESTOR PRESENTATION - 10
Slide 11: International Premier Partners
International Premier Partners INVESTOR PRESENTATION - 11
Slide 12: Expansions
Expansions INVESTOR PRESENTATION - 12
Slide 13: Recent and Future Expansions
Recent and Future Expansions 2015 2016-2020 OW raised its capacity by 7% via adding 13 Plan to add 25-30% of additional woven new looms (7mn sqm). capacity by 2020 through an additional total of 20 looms (pending market conditions). MAC penetrated the artificial turf segment following the addit
Slide 14: Premier Partners: Hospitality Segment
Premier Partners: Hospitality Segment OW Hospitality, the London-based hospitality carpeting arm of Oriental Weavers Group — which manufactures broadloom carpets for luxury hotels worldwide — is the preferred supplier for Four Seasons and several other major players in the hospitality sector. INVEST
Slide 15: OW Hospitality: Recently Completed Projects
OW Hospitality: Recently Completed Projects JW Marriott Grosvenor House, London, UK Marriott Richmond, Virginia Among a long list of projects: Intercontinental New Orleans, LA oMovenpick Accra, Ghana o Movenpick Anwar Al Madina oMovenpick Beirut , Lebanon o Movenpick Makkah, KSA oPark Hyatt, Sochi,
Slide 16: Financial and Operational Performance
OW launched an exclusive partnership agreement with Pantone, most well known in the world of interior designs. OW has 2016 Pantone color of the year rug ready to ship. Financial and Operational Performance INVESTOR PRESENTATION - 16
Slide 17: Consistent Growth in a Cyclical Industry
Consistent Growth in a Cyclical Industry 2015 financial Summary Net sales EBITDA (EGP bn) (EGP mn) 5.9 +1% growth y-o-y Working capital (EGP291mn) Debt & Installment 803 5% of sales Free Cash flow (EGP181mn) -2% y-o-y Equity EGP 144mn Net Profit EBITDA Margin (EGP mn) Capex Proposed 356 (EGP163mn) 3
Slide 18: Financial Summary
Financial Summary Sales Volumes (mn sqm) Export vs. Local Revenue Contribution mn sqm Export Local Export Local 113 115 116 113 111 44 46 48 39% 40% 40% 48 44% 45% 51 61% 60% 60% 69 69 68 56% 55% 65 60 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net Income (EGPmn) Net Debt (EGPbn) EGPbn Net de
Slide 19: Financial overview
Financial overview Growing revenue base (EGPbn) Export Local 5.8 5.9 5.5 EGPbn 4.9 4.6 2.1 2.3 2.7 1.8 2.1 Balance Sheet (EGPmn) December 31, 2015 Cash 370 Short term debt 1,153 3.4 3.5 3.2 2.8 2.8 T-Bills 177 Current Assets 3,613 Current liabilities 2,448 Fixed Assets 2,687 LT liabilities 270 2011
Slide 20: 4Q2015 Financial summary
4Q2015 Financial summary 4Q sales volume performance 4Q sales volume performance Local sales Export sales Mn sqm Local sales Export sales EGP mn 1,491 1,462 31 31 31 30 1,374 1,315 27 1,156 900 870 751 19 18 17 17 773 14 592 565 542 591 592 622 12 13 13 13 13 4Q2011 4Q2012 4Q2013 4Q2014* 4Q2015 4Q20
Slide 21: Cost Structure: Polypropylene
Cost Structure: Polypropylene Polypropylene is the main raw material for Oriental Weavers with its prices Polypropylene — used in trending down . synthetic and blended rugs and carpets — is an oil Cost efficiency is on management’s top priority. Accordingly, sourcing of polypropylene derivative and
Slide 22: Export Incentive Program
Export Incentive Program Export cash Documents proceeds submitted to Export Subsidy Fund Export Exports subsidies (% of exports in EGP) Sources: Company INVESTOR PRESENTATION - 22
Slide 23: Share Fact Sheet
Share Fact Sheet Earnings Per Share & payout ratio Stock Data 450 mn shares at par value of 1 EGP per share EGP/share EPS Payout ratio Listed on EGX September 1997 0.90 63% 70% 52% 49% 6 Month average daily value USD0.5mn 0.80 56% 60% Market Cap USD364mn (as April 4, 2016) 0.70 49% 50% DPS of EGP0.5
Slide 24: Production Cycle
Production Cycle Raw materials used are either wool, or polypropylene. Raw materials The wool is sourced from suppliers in Egypt, New Zealand and the UK; the PP is sourced locally or imported from GCC. Retail stores Spinning & Spinning dying yarn at our yarn Retail: Products are plants where pp gran
Slide 25: Disclaimer
Disclaimer Certain information contained in this document consists of forward-looking climate of Egypt and the Middle East and changes in business strategy and statements reflecting the current view of the Company with respect to future various other factors. Should one or more of these risks or unc
Slide 26: For More Information
For More Information: Ingy Eldiwany Investor Relations Manager +202-22685166 ieldiwany@orientalweavers.com www.orientalweavers.com INVESTOR PRESENTATION - 26