Oriental Weavers Carpet · EGX:ORWE
Oriental Weavers Carpet — 4Q 2020 Earnings Presentation
25 slides from Oriental Weavers Carpet's earnings presentation, 2021
Slide 1: Earnings Release
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Slide 2: Oriental Weavers in Numbers
Oriental Weavers in Numbers EGP 67% No. 1 9.5bn World Largest producer by Volume Turnover as of 2020 Export Contribution in 4Q 2020 Utilization Rate 130 255 80% Showrooms Across Egypt Utilization Rate Export Countries Slide 2
Slide 3: Main Segments of OW
Main Segments of OW Woven Tufted Non-woven Description Surface yarn is woven simultaneously with the The surface yarn is inserted into a Fibers bonded together using backing. Then a latex compound is added. polypropylene sheet chemicals and heat. Subsidiaries OWC OWI & OW USA OW MAC New MAC EFCO OWT
Slide 4: Market Share
Market Share Market Share in US & Europe • Oriental Weavers Carpets have Looms targeting managed to penetrate 130 244 in 2021 markets across the world. Our 10% biggest markets are Egypt ,US and Europe. 239 • 20% of ORWE export sales are from online portals, this figure is expected to increase given
Slide 5: A Vertically Integrated Business Model
A Vertically Integrated Business Model Oriental Weavers has complete control over the manufacturing process. Raw material procurement: The wool is sourced from suppliers in Egypt, New Zealand and the UK; Polypropylene granules are sourced from local and regional suppliers. Fiber extrusion: Raw w
Slide 6: Demand Drivers in Egypt
Demand Drivers in Egypt Growing economy GDP is expected to grow by 5.9% annually up to 2024 as per the IMF. Sizeable youth bracket Sizeable youth population With a population approaching 100mn, Egypt offers one of the largest consumer bases in the region, with huge long-term growth potential for ret
Slide 7: Consumer Spending in Egypt
Consumer Spending in Egypt • Fitch expect spending on essential items will contract slightly in 2021, while consumers to spend more on non-essential consumer items. By 2024, essential spending will account 65.0% of total spending while non-essential spending will make up for 35.0% 2024, up from 34.2
Slide 8: Export Market Drivers
Export Market Drivers ORWE positioning in A growing market with solid dynamics big boxes, Costco for example, that sell Significant pick up in essentials, has played a major role Flooring Market Data sales due to Online in securing sales. shopping. Online Consumers tend to merchants require buy hous
Slide 9: 4Q 2020 Revenue summary
4Q 2020 Revenue summary Value (EGP million) Volume (sqm) 4Q 2020 4Q 2019 % Change 4Q 2020 4Q 2019 % Change Woven- Egypt based 1,677 1,430 +17% 17 13.7 +24% OW USA 480 505 -5% 3 3.4 -13% OW China 1.7 15 - 0 0.2 - Tufted 539 466 +16% 10.7 8.3 +29% Non-woven Felt 116 113 +2% 4.8 4.9 -1% Other 1.7 20.2
Slide 10: 2020 Revenue summary
2020 Revenue summary Value (EGP million) Volume (sqm) 2020 2019 % Change 2020 2019 % Change Woven- Egypt based 5,355 5,684 -6% 53.7 53.2 1% OW USA 1,864 2,136 -13% 12.8 13.5 -5% OW China 0.8 66 -87% 0.1 0.7 -88% Tufted 1,821 1,758 4% 35.4 31.6 12% Non-woven Felt 396 389 2% 16.9 17 -1% Other 37 98 -6
Slide 11: Export Market development
Export Market development Performance by region in 4Q 2020 Revenue Breakdown by region in 4Q 2020 ▼65% Europe Russia & China ▲ 67% Egypt ▲ 29% North & South ▲0.3% Asia America ▼28% ▲73% ▲7% Africa Arab Countries Slide 11
Slide 12: Export Market Development in 4Q 2020
Export Market Development in 4Q 2020 Contribution to Percentage ∆ Volume Value Average Price Export Revenues 4Q 2020 4Q2019 Woven ▲20% ▲16 ▼4% 73% 73% Tufted ▲29% ▲17% ▼9% 23% 23% Non-woven Felt ▲7% ▲20% ▲12% 4% 4% Total ▲22% ▲16% ▼3% 100% 100% Slide12
Slide 13: Export performance overview
Export performance overview Export revenues (EGPbn) Export vs. Local Revenue volume % Export volumes (mn sqm) 6.8 6.7 Export Local 76 6.3 6.2 100% 68 71 68 90% 60 63 80% 40% 34% 35% 38% 35% 45% 3.7 70% 3.5 60% 50% 40% 30% 60% 66% 65% 62% 65% 55% 20% 10% 2015 2016 2017 2018 2019 2020 0% 2015 2016 201
Slide 14: Local Market Development in 2020
Local Market Development in 2020 Contribution to Percentage ∆ Volume Value Average Price Local Revenues 4Q 2020 4Q 2019 Woven ▲6% ▲3% ▼3% 84% 82% Tufted ▲30% ▲10% ▼13% 11% 10% Non-woven Felt ▼7% ▼16% ▼10% 5% 6% Others (yarn sales) ▲87% 2% Total ▲6% ▲0.3% ▼0.3% 100% 100% Slide14
Slide 15: Local market overview
Local market overview Growing local revenues (EGPbn) Export vs. Local revenues% Local sales volumes (mn sqm) Export Local 54 3.8 51 3.7 100% 47 46 3.5 3.3 45 3.0 34% 35% 35% 38 80% 40% 45% 38% 2.3 60% 40% 60% 66% 65% 62% 65% 55% 20% 0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015
Slide 16: Revenue progress
Revenue progress Revenues (EGPbn) Sales volumes (mn sqm) Export Local mn sqm Export Local EGPbn 1 0.4 1 0.1 1 0.2 117 116 114 9.5 111 115 114 10.0 3.5 3.7 3.8 8.0 3.3 47 46 45 38 6.8 51 54 5.8 6.0 3.0 2.3 4.0 6.8 6.7 6.3 6.2 68 68 71 76 60 63 2.0 3.5 3.7 - 2015 2016 2017 2018 2019 2020 2015 2016 201
Slide 17: Diversified Product Mix
Diversified Product Mix 4Q 2020 Revenue Mix (by volume) 4Q 2020 Revenue Mix (by value) Woven-Grade A EGP158/sqm Tufted wall-to-wall EGP47/sqm Woven-Grade B EGP114/sqm Tufted pieces EGP51/sqm Woven-Grade C EGP65/sqm Non-woven (EFCO) EGP24/sqm Slide 17
Slide 18: 4Q 2020 Cost Breakdown PP Prices (USD/ton)
4Q 2020 Cost Breakdown PP Prices (USD/ton) 2,000 USD /ton Polypropylene- 1,800 OW China Nylon 1,629 0% 1,585 1,584 26% 1,600 1,456 1,363 Other 1,400 1,218 1,275 22% 1,220 1,200 1,130 1,103 990 993 1,026 Backing Raw Material 1,000 8% Selling 47% 18% 800 600 Wages 9% Wool Depreciation 5% Finishing mat
Slide 19: Recent Expansions
Recent Expansions 2017 2018 2019 2020 2021 Woven Establishing a new 9 new looms 4 looms 5 weaving looms 5 weaving looms factory Seven yarn Packing machines Dying machine 2 automatic rolling 10 new looms machines Yarn machine Wrapping machine machine One Heat-set yarn 4 Goblin Machines
Slide 20: Financial Summary
Financial Summary EBITDA Performance (EGPbn) Net Income Performance Net Debt (EGPbn) EGPmn Net debt (EGP billion) Net debt/EBITDA EBITDA EBITDA margin EGPmn Net income Net margin 1,600 800 12% 1.5 16.5% 14.9% 16% 14.5% 700 2 14% 600 10% 1,100 1.0 10.7% 500 9.9% 11.1% 12% 1,523 7.1% 8% 1.2x 0.8x 1,11
Slide 21: Impact of Energy Subsidy Reform on Costs
Impact of Energy Subsidy Reform on Costs % Jun-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Energy cost Change Natural gas (US$/mmbtu) 2.25 5 5 5 5 5 - Electricity (EGP/KW) 0.28 0.435 0.53 0.69 0.99 1.1 11% Transportation costs (EGP Diesel/Liter) 1.1 1.80 2.35 3.65 5.5 6.75 23% * Energy cost represents les
Slide 22: Export Incentive Program
Export Incentive Program: Export cash Documents For the Period FY We received a total of EGP 482m in 2020. EGP 235m out proceeds submitted to Export 2018/2019 of which were under the government initiative, with a 15% discount for early settlement Subsidy Fund For the Period FY The program will be as
Slide 23: Share Data
Share Data EPS Payout ratio o 665.1 mn shares at par value of EGP 1 per share. 2.00 92% 1.81 100% 1.80 1.68 90% o Issued and Paid-in Capital EGP 665.1 mn. 1.60 81% 1.46 81% 76% 80% 1.40 70% o Listed in EGX since September 1997. 1.20 1.07 60% 1.00 50% 50% o 3 Month average daily value EGP8.3mn. 0.80
Slide 24: Disclaimer
Disclaimer Certain information contained in this document consists of forward-looking statements reflecting the current view of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achie
Slide 25: For More Information, please contact
For More Information, please contact Yasmine El Gohary Investor Relations Manager +202-22685166 yelgohary@orientalweavers.com www.orientalweavers.com Slide 25
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