Oriental Weavers Carpet · EGX:ORWE
Oriental Weavers Carpet — Oriental Weavers — Q1 2020 Earnings Presentation
23 slides from Oriental Weavers Carpet's earnings presentation, 2020
Slide 1: Oriental Weavers Earnings Release
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Slide 2: Oriental Weavers in Numbers
Oriental Weavers in Numbers No. 1 EGP 10.1 bn 62% World Largest Record Turnover in Export contribution producer by volumes 2019 in Q120 80% c. 80% EGP 458 mn Market share in Backlog of export Utilization rate incentives (as of 31st Egypt May 2020) Slide 2
Slide 3: Main segments of OW
Main segments of OW Woven Tufted Non-woven Description Surface yarn is woven simultaneously The surface yarn is Fibers bonded with the backing. Then a latex inserted into a together using compound is added. polypropylene sheet chemicals and heat. Subsidiaries OWC OWI & OWUSA OW MAC New MAC EFCO OWT
Slide 4: 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 5: Demand Drivers in Egypt
Demand Drivers in Egypt Growing economy Sizeable youth bracket Sizeable youth 50% of the Egyptian population are near the marriage with population around one million marriages taking place annually. Housing gap Housing gap is about 3 million units which creates potential for the development of new p
Slide 6: 1Q 2020 Revenue summary
1Q 2020 Revenue summary Value (EGP m illion) Volum e (m n sqm ) 1Q2020 1Q 2019 % Change 1Q2020 1Q 2019 % Change Woven- Egypt based 1,220.0 1,409.5 -13.4% 12.28 13.21 -7.0% OW USA 492.2 606.1 -18.8% 4.01 3.66 9.6% OW China 4.2 15.1 -72.2% 0.06 0.17 -66.5% Tufted 451.5 437.1 3.3% 8.41 7.97 5.4% Non-w
Slide 7: 2019 Revenue summary
2019 Revenue summary Volume (mn sqm) Value (EGP million) 2019 2018 2019 2018 % Change % Change Woven- Egypt based 5,684.6 5,977.2 -4.9% 53.3 55.9 -4.6% OW USA 2,136.1 2,133.9 0.1% 13.5 11.4 18.8% OW China 66.8 80.9 -17.4% 0.8 0.9 -16.2% Tufted 1,758.4 1,778.9 -1.2% 31.6 30.9 2.2% Non-woven Felt 17.2
Slide 8: Export Market development
Export Market development Performance by region in Q12020 ▼ 67% Europe Russia & China ▼ 24% North & South America Egypt ▼ 22% ▼ 3% ▼ 12% Asia ▼27% ▼ 9% Africa Arab Countries Slide 8
Slide 9: Export Market Development in 1Q 2020
Export Market Development in 1Q 2020 1Q 2020 1Q2020 Average Price in Contribution to Volume Value EGP Export Revenues (y-o-y) Percentage ∆ (y-o-y) 1Q 2020 1Q 2019 Woven ▲2% ▼19% ▼21% 71% 77% Tufted ▲15% ▲13% ▼2% 26% 20% Non-woven Felt ▼9% ▼6% ▲3% 3% 3% Total (in EGP) ▲5% ▼12% ▼17% 100% 100% In USD ▼
Slide 10: Export performance overview
Export performance overview Export revenues (EGPbn) Export vs. Local Revenue volume % Export volumes (mn sqm) Export Local 6.8 6.7 100% 6.3 71 80% 40% 34% 35% 38% 68 68 45% 3.5 3.7 60% 63 40% 60 60% 66% 65% 62% 55% 20% 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Sli
Slide 11: Local Market Development in 1Q 2020
Local Market Development in 1Q 2020 1Q Contribution to Percentage ∆ 1Q Volume Value Local Revenues (y-o-y) (y-o-y) Average Price 1Q 2020 1Q 2019 Woven ▼12% ▼10% ▲2% 84% 81% Tufted ▼28% ▼24% ▲5% 10% 12% Non-woven Felt ▲11% ▲14% ▲3% 6% 4% Other (yarn sales) ▼92% 0% 3% Total ▼10% ▼13% ▼1% 100% 100% Sli
Slide 12: Local market overview
Local market overview Growing local revenues (EGPbn) Export vs. Local revenues% Local sales volumes (mn sqm) 3.8 Export Local 3.5 3.7 100% 54 3.0 34% 35% 80% 40% 45% 38% 51 2.3 60% 47 46 40% 45 60% 66% 65% 62% 55% 20% 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Slid
Slide 13: Revenue progress
Revenue progress Revenues (EGPbn) Sales volumes (mn sqm) Export Local mn sqm Export Local EGPbn 10.2 10.4 10.1 116 10.0 117 115 114 111 3.5 3.7 3.8 8.0 6.8 54 47 46 45 5.8 51 6.0 3.0 2.3 4.0 6.8 6.7 6.3 63 68 68 71 2.0 60 3.5 3.7 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Slide 13
Slide 14: Diversified Product Mix
Diversified Product Mix 1Q 2020 Revenue Mix (by value) 1Q 2020 Revenue Mix (by volume) Other Non-woven 0% Non-woven Woven- Felt Felt Egypt based 4% 15% 42% Woven Egypt based Tufted 58% 19% Tufted OW China 29% 0% OW USA OW China 14% 0% OW USA 22% Woven-Grade A EGP236/sqm Tufted wall-to-wall EGP46/sqm
Slide 15: 1Q 2019 Cost Breakdown
1Q 2019 Cost Breakdown PP Prices (USD/ton) OW China 2,000 USD /ton 0% 1,800 1,629 1,585 1,584 Other 14% 1,600 1,456 1,363 1,400 1,275 Polypropylene- Nylon 1,218 27% 1,200 1,130 1,103 Selling Backing 1,053 Raw Material 990 993 23% 8% 1,000 48% Finishing 800 material Wool 9% 600 4% Depreciation 400 4%
Slide 16: CapEx Spending
CapEx Spending 2016 2017 2018 2019 2020 Woven 4 new goblin looms Establishing a 9 new looms 4 looms 3 weaving looms 9 new looms new factory Seven yarn Packing machines Dying machine 2 yarn production 10 new looms machines Yarn machine Wrapping machine lines One Heatset yarn machines Tufte
Slide 17: Financial Summary
Financial Summary EBITDA Performance (EGPbn) Net Income Performance Net Debt (EGPbn) EGPmn Net debt (EGP billion) EBITDA EBITDA margin EGPmn Net income Net margin 1,600 800 8% 1.5 16.5% 14.9% 16% 700 7.1% 7.6% 2 14% 600 6.7% 1,100 1.0 10.7% 500 11.1% 12% 4.8% 6% 1.2x 0.8x 1,523 400 0.8x 1 1,116 600
Slide 18: 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 19: Export Incentive Program
Export Incentive Program: Export cash Documents proceeds submitted to Export EGP458 mn delayed Subsidy Fund disbursement till May 2020 OW collected EGP 151 mn till May 2020 Export subsidies Exports (% of exports in EGP) Sources: Company Slide 19
Slide 20: Export Rebate Updates 2019/2020
Export Rebate Updates 2019/2020: • OW received a total of EGP 218 million in export rebates in 2019, with the current backlog standing at EGP 458 million as of 31st May 2020. • In December 2019: OW signed a settlement agreement with the Ministry of Finance and Ministry of Trade & Industry to settle
Slide 21: Share Data
Share Data o 665.1 mn shares at par value of EGP 1 per share. Shareholders’ structure o Issued and Paid-in Capital EGP 665.1 mn. o Listed in EGX since September 1997. Khamis Family 56.5% Institutions 37% o 3 Month average daily value EGP8.3mn. Foreign Institutions 23.6% o Market Cap USD 292 mn (as o
Slide 22: 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 23: 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 23