Oriental Weavers Carpet · EGX:ORWE
Oriental Weavers Carpet — Oriental Weavers — Q3 2020 Earnings Presentation
22 slides from Oriental Weavers Carpet's earnings presentation, 2020
Slide 1: Earnings Release
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Slide 2: Oriental Weavers in Numbers
Oriental Weavers in Numbers No. 1 EGP 10.1 bn 66% World Largest Record Turnover in Export contribution producer by volumes 2019 in 3Q2020 80% c. 80% EGP 467 mn Market share in Egypt Backlog of export Utilization rate 255 Showrooms incentives Across Egypt 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 GDP is expected to grow by 5.9% annually up to 2024 as Sizeable youth bracket per the IMF. 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
Slide 6: 3Q 2020 Revenue summary
3Q 2020 Revenue summary Value (EGP million) Volume (sqm) 3Q 2020 3Q 2019 % Change 3Q 2020 3Q 2019 % Change Woven- Egypt based 1,481 1,351 +10% 14.6 12.3 +19% OW USA 489 436 +12% 3.0 2.8 +12% OW China - 15 - - 0.2 - Tufted 488 436 +12% 9.3 7.9 +18% Non-woven Felt 108 87 +23% 4.4 3.7 +19% Other 22.5 2
Slide 7: 9M 2020 Revenue summary
9M 2020 Revenue summary Value (EGP million) Volume (sqm) 9M 2020 9M 2019 % Change 9M2020 9M2019 % Change Woven- Egypt based 3,677 4,255 -14% 37 40 -7% OW USA 1,384 1,631 -15% 9.8 10.1 -2% OW China 0.67 51 -87% 0.1 0.6 -88% Tufted 1,281 1,292 -1% 25 23 6% Non-woven Felt 281 275 2% 12 12 -1% Other 36
Slide 8: Export Market development
Export Market development Performance by region in 3Q 2020 Revenue Breakdown by region in 3Q 2020 ▼84% Europe Russia & China ▼5% Egypt ▼6% North & South ▼5% Asia America ▼18% ▲67% ▲24% Africa Arab Countries Slide 8
Slide 9: Export Market Development in 9M 2020
Export Market Development in 9M 2020 3Q 2020 3Q2020 Contribution to 9M 2019 9M2019 Volume Value Average Export Volume Value Percentage Change Price Revenues 3Q 2020 3Q 2019 Woven ▲31% ▲20% ▼8% 73% 73% ▲1% ▼14% Tufted ▲25% ▲20% ▼4% 24% 24% ▲15% ▲8% Non-woven Felt ▲31% ▲39% ▲6% 3% 3% ▲5% ▲7% Total ▲28
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 9M 2020
Local Market Development in 9M 2020 3Q 2020 3Q 2020 Average Contribution to 9M 2020 9M 2020 Percentage Change Volume Value Price Local Revenues Volume Value 3Q 2020 3Q 2019 Woven ▼1% ▼6% ▼4% 83% 83% ▼17% ▼16% Tufted ▼12% ▼17% ▼6% 9% 10% ▼28% ▼29% Non-woven Felt ▲10% ▲8% ▼1% 6% 5% ▼6% ▼3% Others (yar
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 3Q 2020 Revenue Mix (by volume) 3Q 2020 Revenue Mix (by value) Woven-Grade A EGP199/sqm Tufted wall-to-wall EGP45/sqm Woven-Grade B EGP118/sqm Tufted pieces EGP53/sqm Woven-Grade C EGP67/sqm Non-woven (EFCO) EGP23/sqm Slide 14
Slide 15: 3Q 2020 Cost Breakdown PP Prices (USD/ton)
3Q 2020 Cost Breakdown PP Prices (USD/ton) 2,000 USD /ton 1,800 1,629 1,585 1,584 1,600 1,456 1,363 1,400 1,218 1,275 1,200 1,130 1,103 990 993 1,019 1,000 800 600 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Company Almost 63% of costs are dollar based. Slide 15
Slide 16: Recent Expansions
Recent Expansions 2017 2018 2019 2020 2021 Woven Establishing a new 9 new looms 4 looms 3 weaving looms 5 weaving looms factory Seven yarn Packing machines Dying machine Dying machine 10 new looms machines Yarn machine Wrapping machine Shearing line One Heat-set yarn 4 Goblin Machines
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 Subsidy Fund Export subsidies Exports (% of exports in EGP) Slide 19
Slide 20: 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 21: 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 22: 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 22