avgol

FY 2012
Financial Results
Analysts Conference Call
March 2013
Financial Results
Analysts Conference Call
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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Analysts Conference Call
Agenda
• Key Highlights
• Financial highlights
• Revenue Breakdown
• COGS Breakdown
• Cash Flow
• Balance Sheet
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Analysts Conference Call
Presentation Team
Mr. Shlomo Liran
CEO
Mr. Shachar Rachim
CFO
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Analysts Conference Call
Financial Highlights
USD Million
Revenue, Net
Gross Profit
2011
Annual
%
2012
-4.4%
315.1
80.1
78.3
-2.3%
69.0
-8.6%
63.1
18.4
14.7
-20.4%
20.0%
23.0%
18.7%
36.3
11.9
7.4
11.5%
14.8%
9.4%
24.7 -11.2%
21.9
6.0
3.9
7.5%
7.0%
7.5%
5.0%
57.1
16.3
13.1
18.1%
20.4%
16.7%
41.3 -12.1%
12.5%
Net Profit*
EBITDA
58.9
-3.0%
17.9%
Adj. EBITDA**
57.9
0.3%
58.1
17.6%
31-12-11
18.4%
%
31-12-12
Total Assets
372.8 13.3%
422.4
Net Debt
154.7
149.7
% Net Debt/Total Assets
Net Debt/EBITDA
-3.3%
41.5%
35.4%
2.63
2.62
* Company’s Net Profit before allocation to majority and minority shareholders.
** Adjusted EBITDA following allocation of customer rebate to the relevant reporting period
4
%
329.6
20.9%
EBIT
Quarter
Q4/11
Q4/12
-38.0%
-35.4%
-19.9%
Analysts Conference Call
Strong Market Position
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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Analysts Conference Call
Investments & Net Debt
• The company completed on schedule its
investment in two lines in USA and China.
The new production line in the China start
its operation during Q4/2012.
• Net Debt/ EBITDA ratio decreased to 2.62.
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Analysts Conference Call
Key Highlights
Financial
• 2012 revenues USD 315 million, decreased by 4.4% compared to 2011. In 2012, Avgol
continued to show an increase in sales compared to last year (after neutralizing the
volatility in the raw materials prices throughout the year).
• 2012 gross profit of 20.0% of sales compared to 20.9% in 2011, mainly due to inefficiency
in US, which after a period of operating difficulties and inadequate efficiency, we are in the
process of improving and we already achieved improvements during the Q4/12.
• 2012 EBITDA USD 57.1 million and Adjusted EBITDA of USD58.1 million.
• 20% increase in the cash flow from operating activities compared to 2011, to approximately
USD 45.3 million.
• Debt-to-EBITDA ratio of 2.62.
Market & Business
• The company signed the lease contract for the land allotment in India supporting the
company’s future strategic growth path.
• The company increased its share in Avgol China from 83% to 97% on January 2013.
Source: Company Financial Reports
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Analysts Conference Call
Cost of Goods Sold (COGS)
Source: Company Financial Reports
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Analysts Conference Call
Profit Development
Source: Company Financial Reports
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Analysts Conference Call
Cash Flow
FY
USD Million
Current Operations
Net Income
Depreciation/Amortization
Other non-CF income/expenes
Change in Working Capital
Net CF from Current Operations
Investments Activities
CAPEX
Short term deposit
Purchase of Intangible assets
Other
Net CF from Investments Activities
Financing Activities
Increase (decrease) in ST Bank Loans
Repayment of LT Bank Loans & Bonds
Receipt of LT Bank Loans & Bonds
Other
Purchase of Minority in Cons. Company
Dividend Paid
Net CF from Financing Activities
Increase in Cash & Cash equivalents
Closing Balance
Source: Company Financial Reports
10
2011
2012
% Change
24.7
17.7
4.8
-9.5
37.7
21.9
20.5
3.4
-0.3
45.5
-11%
15%
-40.9
-2.5
-0.9
-0.1
-44.4
-27.7
2.5
-0.8
1.5
-24.5
-32%
18.0
-34.0
35.0
-10.0
9.0
2.3
19.0
-16.1
-37.7
83.5
-0.1
-2.8
-12.0
14.8
35.8
54.7
20%
-45%
11%
1460%
189%
ST = Short Term; LT = Long Term
Analysts Conference Call
Balance Sheet Highlights
USD Million
Assets
Cash & Cash equivalents
% Change
31-12-12
19.1
186%
54.7
Inventory
40.2
-3%
38.9
Trade Receivables
43.7
18%
51.3
Derivatives
11.2
-10%
10.1
Fixed Assets, Net
239.6
5%
251.1
Liabilities & Equity
Bank Loans & Bonds
184.2
16%
214.5
Trade payables
31.2
1%
31.4
Tax Liabilities
24.1
7%
25.8
126.6
10%
139.9
Equity
Source: Company Financial Reports
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31/12/11
Analysts Conference Call
Share price – one year 20/03/13
Source: Globes website
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Financial Results
Analysts Conference Call
Thank You
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