Avgol Industries 1953 : Presentation-Financial Resultsה Q1/2024

Financial Results

Q1/2024

שיגנ ךמסמל

Analyst Conference | Disclaimer

הווהמ וניא )"עדימה" - ןלהל( תגצמה תגצה ךלהמב רסמייש רחא עדימ לכו תגצמב לולכה עדימה .)"הרבחה" - ןלהל( מ"עב 1953 תוישעת לוגבא תרבח י"ע הנכוה וז תגצמ	▪
םינותנה תגצהב תוחונה ךרוצל ןתינ עדימה .ילאיצנטופ עיקשמ לש תעד לוקישל ףילחת הווהמ אל ןכו ,תעד תווח וא הצלמה הווהמ וניאו ,העקשה תטלחה תלבקל סיסב
לש האלמ הנומת לבקל תנמ לעו ,דבלב תיצמת וניה הרבחה לש תוליעפה חותינל רושקה לכב תגצמב רומאה .םנכדעל וא/ו םינותנה תא תתל ךישמהל תבייח הניא הרבחהו
.הסרובלו ע"ינל תושרל הרבחה לש םיאלמה םיחווידב ןייעל שי ,הרבחה תדדומתמ םמיע םינוכיסה לשו הרבחה תוליעפ
הניא םתושממתה רשא ,םיידיתע םיניינע וא םיעוריאל םיסחייתמה םינדמואו תוכרעה ,תורטמ ,תויזחת לש ,ךרע תוריינ קוחב ותרדגהכ ,דיתע ינפ הפוצ עדימ תללוכ תגצמה	▪
.הרבחה לש תיביטקייבוסה התכרעה לע קר ססובמ אוהו ,הרבחה תטילשב הניאו תיאדו
הרבחהש ףא לע ךכיפלו הרבחה תטילשב םייוצמ םניא םהו שארמ םכירעהל ןתינ אל רשא םימרוגמ עפשות דיתע ינפ הפוצה עדימה לש ותושממתה יא וא/ו ותושממתה	▪
ולאמ תונוש תויהל תויושע ןהו הלא תויפיצל םאתהב הנייהת דיתעב הרבחה לש לעופב היתואצות יכ תואדוו לכ ןיאש ירה ,תוריבס ןניה ,תגצמב גצומכ ,היתויפיצש הנימאמ
.דיתע ינפ הפוצ עדימב וגצוהש

• 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		The Public
Ventures LTD	+	=
34.03%
65.97%

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	"SMS"	Meltblown
One continuous process	Fabrics comprised of	High-velocity air blows
in which fibers are spun	one or more Spunbond	molten thermoplastic
and then directly	beams and one or more	resin from an extruder
dispersed into a web by	Meltblown beams in a	die tip onto a conveyor
deflectors or with air	combination	to create random laid
stream. This technology	which improves barrier,	nonwoven fabric, a
leads to faster belt	absorbency, and	structure useful for
speeds and lower costs	structural performance	filtration and wipes

MARKETS

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

Partner with others that share this same environmental obligation

to achieve new, meaningful, and timely results

Improved Technologies to increase product performance in

lighter weights

Being Proactive by Improving Efficiency and Reducing

Environmental Impact in our operations

Replace unrenewable resins with alternate materials which minimize

negative environmental impact

Recycle PP Waste streams

Analyst Conference | Strong footprint to serve the global market

		Uzlovaya, Russia
		28K MT
MV, USA
78K MT (+20K)	Dimona, IL	Jingmen, China
	10K MT	39K MT
		Gujarat, IN

10K MT	MP, IN
	10K MT

SERVING CUSTOMERS IN

OVER 30 COUNTRIES WW

6

Q1'24 Key highlights

EBITDA

Q1'24	Q1'23
$10.0M	$10.5M

Leverage

Net Debt/EBITDA

3.1

Underlying EBITDA

Q1'24	Q1'23
$11.3M	$10.0M

Sales Volume

Q1'24 vs. Q1'23

+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.

7 REIMAGINING CHEMISTRY TOGETHER TO CREATE A BETTER WORLD

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.

3000

2500

2000

1500

1000

500

0

Mar-22	Jun-22	Sep-22	Dec-22	Mar-23	Jun-23		Sep-23	Dec-23	Mar-24
		US Contract DDP US$/KMT		NEA Spot CFR China US$/KMT		WE Contract DDP US$/KMT

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	Q4'24
TOTAL PLANNED	PLANNED
INVESTMENT	COMMISSIONING DATE

9

Financial Results

Q1-2024