Financial Results Financial Results

Q1/2024

Q1/2023

Sivan Yedidsion – CFO

Analyst Conference | Disclaimer

מצגת זו הוכנה ע"י חברת אבגול תעשיות 1953 בע"מ )להלן "החברה"(. המידע הכלול במצגת וכל מידע אחר שיימסר במהלך הצגת המצגת )להלן "המידע"( אינו מהווה בסיס לקבלת החלטת השקעה, ואינו מהווה המלצה או חוות דעת, וכן לא מהווה תחליף לשיקול דעת של משקיע פוטנציאלי. המידע ניתן לצורך הנוחות בהצגת הנתונים והחברה אינה חייבת להמשיך לתת את הנתונים ו/או לעדכנם. האמור במצגת בכל הקשור לניתוח הפעילות של החברה הינו תמצית בלבד, ועל מנת לקבל תמונה מלאה של פעילות החברה ושל הסיכונים עימם מתמודדת החברה, יש לעיין בדיווחים המלאים של החברה לרשות לני"ע ולבורסה.
המצגת כוללת מידע צופה פני עתיד, כהגדרתו בחוק ניירות ערך, של תחזיות, מטרות, הערכות ואומדנים המתייחסים לאירועים או עניינים עתידיים, אשר התממשותם אינה ודאית ואינה בשליטת החברה, והוא מבוסס רק על הערכתה הסובייקטיבית של החברה.
התממשותו ו/או אי התממשותו של המידע הצופה פני עתיד תושפע מגורמים אשר לא ניתן להעריכם מראש והם אינם מצויים בשליטת החברה ולפיכך על אף שהחברה מאמינה שציפיותיה, כמוצג במצגת, הינן סבירות, הרי שאין כל וודאות כי תוצאותיה בפועל של החברה בעתיד תהיינה בהתאם לציפיות אלה והן עשויות להיות שונות מאלו שהוצגו במידע צופה פני עתיד.
This information is forward-looking information, which is based on the information known by the Company at the time of this report is being published. This information might not materialize or might materialize in a way that differs from that anticipated, inter alia, if a material change in trend occurs, or due to other parameters that affect the Company's manufacturing costs or the Company's selling prices.
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.

Analyst Conference I Who We Are

AVGOL is a world leader in the development, manufacturing and marketing of nonwoven fabrics for diapers, adult incontinence products, disposable feminine hygiene products, disposable medical products, wipes, fabrics used to produce masks, gowns and additional medical products.

AVGOL also manufactures nonwoven fabrics used as raw or component materials in various non-hygiene products. Our products are based on polyolefin resins, specifically those in the Polypropylene (PP) family.

Our team

~880 employees in the Global commercial and technical team

Global

6 production sites in Israel, USA, China, Russia and India supplying more than 30 countries.

Quality

Committed to serve our customers with on-time, in full supply of materials to specification

Strategy

Global leader in the Nonwovens industry, with broad application and end-use touch points

Indorama Ventures LTD 65.97% +

The Public 34.03%

Analyst Conference | Technology & Markets

RAW MATERIAL

Polypropylene (PP) Made from the combination of propylene monomers and used in a variety of applications, such as packaging for consumer products, plastic parts for various industries, and textiles

TECHNOLOGY

Spunbond

One continuous process in which fibers are spun and then directly dispersed into a web by deflectors or with air stream. This technology leads to faster belt speeds and lower costs

"SMS"

Fabrics comprised of one or more Spunbond beams and one or more Meltblown beams in a combination which improves barrier, absorbency, and

Meltblown

High-velocity air blows molten thermoplastic resin from an extruder die tip onto a conveyor to create random laid nonwoven fabric, a structure useful for filtration and wipes

MARKETS

structural performance Hygiene Baby Care Hygiene Adult Incontinence Hygiene Feminine Care Others (including Wipes) Medical

Analyst Conference | We Are Committed to Sustainability

How we are planning to do things better

Analyst Conference | Strong footprint to serve the global market

Q1'24 Key highlights

EBITDA		Underlying EBITDA
Q1'24	Q1'23	Q1'24	Q1'23
\$10.0M	\$10.5M	\$11.3M	\$10.0M

Leverage		Sales Volume
Net Debt/EBITDA		Q1'24 vs. Q1'23
3.1		+13%

Key highlights

2024 first quarter sales volume is up 13% compared to the first quarter of 2023.
Market seems to recover some what, but is still challenging with over-capacity and increased competition, especially in APAC.
Increased sales in NA supported by shipments from other locations in anticipation of the expected additional capacity from Line 6.
Sales and marketing and administrative costs showing a slight reduction despite inflationary pressures, through diligent cost control and ease in shipping rates.
Polypropylene prices increased during the first quarter, but a downward trend started in April.

Raw Material | Polypropylene Indices Trend Per region

During the first quarter of 2024, and until the publication date of this report, there is a moderate downward trend in raw materials prices. The Company expects this to have a minor positive impact on its results for the second quarter of 2024.

This information is forward-looking information, which is based on the information known by the Company at the time this report is being published. This information might not materialize or might materialize in a way that differs from that anticipated, inter alia, if a material change in trend occurs, or due to other parameters that affect the Company's manufacturing costs or the Company's selling prices.

USA Expansion | Project Update

In December 2022, the company's Board of Directors decided to establish a new production line in our North Carolina, USA facility, as an alternative to the originally planned expansion in Russia.

The addition of this new Reicofil 5 machine will expand the company's existing production capacity by 20K MT annually, offering better efficiency and more advanced products to serve the growing North American market.

\$90M TOTAL PLANNED INVESTMENT Q4'24

Financial Results Q1-2024

Analyst Conference I Quarterly Financial Highlights

USD Mn	Q1'24	Q4'23	Q3'23	Q2'23	Q1'23
Revenues, net	86.5	79.4	80.3	78.3	80.0
Gross Profit	10.9	9.1	13.6	10.9	11.9
	12.6%	11.4%	16.9%	13.9%	14.8%
EBIT	3.6	1.2	7.0	3.4	4.0
	3.4%	1.5%	8.8%	4.4%	5.0%
	0.3	(1.8)	3.5	1.5	0.8
Net Profit	0.3%	(2.3%)	4.3%	1.9%	1.0%
	10	8.3	13.5	10.3	10.5
EBITDA	11.6%	10.5%	16.8%	13.1%	13.1%
	11.3	9.6	9.6	12.0	10.0
EBITDA Underlying	13.1%	12.0%	11.9%	15.3%	12.5%
Net Debt/EBITDA	3.11	3.03	2.52	2.29	2.20