brand industries group investor presentation june 2016 · brand industries group investor...
TRANSCRIPT
Brand Industries Group Investor Presentation June 2016
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This presentation does not constitute an offer to buy securities of the Company and/or request for proposals to purchase the Company's securities.It should be emphasized that the information outlined is a summary presentation only and not a substitute for a full review of the Company’speriodic reports, quarterly reports and immediate reports and/or other publications published and/or to be published by the Company in electronicdue diligence systems.
The information included in this presentation is based on the present state of the company (including its subsidiaries), its assets, areas of activityand the business environment of the company as it is, to the best knowledge of the Company, as of the preparation and publishing date of thispresentation.
This presentation includes data and information that are based partly on subjective assessments of the company and its estimates, and therefore,they should be treated accordingly. In addition, the presentation includes information regarding the Company's order backlog, the company'svision, its strategy, its goals and plans for the future. The Company's evaluations, estimates and such other information, may constitute forward-looking information as defined in the Securities Law, 5728-1968.
This forward-looking information is based, inter alia, on expectations and estimates by the Company with regard to its present state, areas ofoperations and business environment as they are at the date of this presentation, analysis of general information available to the Company as ofthe date of this presentation and external developments whose realization is uncertain.
Realization of this information may be affected by various factors that cannot be seen or assessed in advance and which are not under theCompany's full control, or not controlled at all, including possible developments in the general Company environment and of external factors thatcould affect the Company's operations. There is no certainty that such information will be realized, in whole or in part, and actual results may differsignificantly from those described in this presentation, due in part to possible changes in the general environment, the Company's business,including regulatory directives relating to the Company's activities and budget plans of any of the Company's customers and/or realization of one ormore of the Company's risk factors as described in Article 25 of Chapter A in the Company's periodic report dated March 28, 2016 (Reference No.2016-01-016734).
Disclaimer
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About BRAND Industries Group
Leading Israeli solution provider in the Metal Sector for infrastructures, energy and security.
Company customers are the largest industrial and energy companies, public and government security
bodies in Israel.
The group has large scope strategic projects in Israel and abroad.
Offers a wide range of products and services while achieving high synergy between activities.
Service provision includes the fields of engineering and production according to the highest standards and
quality requirements.
Long-term reputation and experience with the highest engineering capabilities and meeting schedules.
Extensive production capacity and nationwide production sites employing 455 workers
Order backlog - NIS 334 million, for execution by Q2 2017 (as of 29 May 2016).
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Ownership Structure
Controlling interest in the Company is held by the private equity fund KCPS/Kedma
Recruited $75 million
Acquired Control of BRAND
Danel, FIS (acquired by Sapiens),Marina Group, Carmel Winery
Recruiting continuity funding, KedmaFund, in the scope of $150 million
Femi Premium Continuity Software
Gilead Halevy, a partner of the fund is the Company Chairman. Percentage of holdings after private issue.
2007
2008
Additional Investments
2014
KCPS 69.8% 18.3%ציבור
7.9%הפניקס 4%חברת בת Investments
Phoenix 7.9%
Public 18.3%
Subsidiary 4%
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Entry into the Vehicle Sector,
Acquisition of Activities in the
field of tanks and light constructions.
BRAND Group 40 Years of Experience and Achievement1978
1993
2001
2008
2011
2014
2015
2016
BRAND Founded
Company Share
Issue on Stock
Market
First Sale to
Customer Abroad
KCPS Acquires ControlAcquisition
of Assets
and
Equipment
from the
Koor
Group
Entry into the
Industrial
Facilities
construction
field
Entry into the Natural Gas Project
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Areas of Activities
Metal and Construction SectorPerformance of projects according to engineering design at a high technical level using advanced technologies.
Power Plants
Construction for Buildings
Gas Aggregator Manufacturing
Pipelines and Plant Conversions
Specialty Vehicle SectorProviding engineering solutions of design, development, manufacture
and maintenance of vehicles tailored to customer needs
For Security Purposes
For Civilian and Military Purposes
For Civilian and Military Purposes
Energy
Infrastructures
Aggregators
Natural Gas
Armored Vehicles
Specialized Vehicles
Trailers & Leaders
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Achievements
Power plants in Israel and abroad: Dalia, Paz Ashdod, Israel Electric Corporation and in Greece, the U.S., Germany and Belgium
Projects: Production barges and facilities for the Dead Sea Works, construction of a pipeline to Israel Natural Gas Lines
Constructions for Industrial Buildings for Check Point, Ayalon Mall, Adgar 360 Building, Bank Leumi Building
Income in 2015 – NIS 93 Million
Order Backlog (as of 29 May, 2016) – NIS 247 Million
Almost half of the 2015 company income in this sector was received from customers with 8 or more years of seniority
Metal and Construction Sector
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Major Projects for Execution – 2016
Gilboa Pumped Storage Project
In the scope of NIS 57.5 million, projected completion in Q1 of 2017
Light Rail Red Line Stations Project
In the scope of NIS 72 million, projected completion in Q3, 2017
International Airport at Timna
In the scope of NIS 39 million, projected completion in Q1, 2017
Rutenberg Power Plant, Ashkelon
Construction Project: scope of NIS 24 million, projected completion in H2,
2016
System & equipment manufacture: scope of NIS 40 million, projected
completion in Q4, 2017
Thermo-Solar Power Plant in Ashalim
Scope of NIS 29 million, projected completion by the end of 2016
Metal and Construction Sector
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(*) Present customers and past customers the Group has performed projects for.
Metal and Construction Sector Customers (*)
Israeli Customers International Customers
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Achievements
Executing projects abroad in more than seven countries
Both in providing tools for military and civilian purposes
Motorized vehicles for foreign customers – project scope of NIS 100 million, completed in Q2, 2016
Executing projects in Israel for a wide range of customers
Including the IDF, Israel Police, Rafael, Elbit, IMI, the Israel Airport Authority, Israel Fire & Rescue, Israel Nature & Parks Authority and others.
Order Backlog (as of 29 May, 2016) – NIS 87 million
The sales mix is balanced and stable in the domestic market and abroad
Specialty Vehicle Sector
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Specialty Vehicle Sector Customers
Ministry of Public Security
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Financial Information
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Income Distribution by Activity Sectors in 2015
Metel & Costruction 42% Specialized Vehicle 52% Other 6%
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Income Distribution by Activity Sectors 1-9/2016
Metel & Costruction 62% Specialized Vehicle 35% other 3%
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Summary of Consolidated Profit and Loss
Millions of NIS 1-9/2016 2015 2014
Metal & Construction Income 169.4 93.5 147
Designated Vehicles Income 93.5 118.8 86
Gross Profit Rate 18.9% 15.8% 10.7%
Operating Profit 30.7 11.1 6.5
Operating Profit Rate 11.3% 4.8% 2.6%
Net Profit (Loss) 20.3 6.5 (1.5)
Profit (Loss) – stock holders 16.3 0.8 (1.8)
Cash Flow from Operating Activity (29.2) 28.6 11.5
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Summary of Consolidated Balance Sheet Items
(*) Does not include pledged cash
Millions of NIS 30.9.2016 30.6.2016 31.12.2015
Cash (*) 10.7 17.5 27.1
Accounts Receivable 161.6 136.3 106.3
Inventory 48.9 48.4 45.6
Non-current Assets 87.9 91.1 72.6
Short-term Credit 40.5 23.2 15.1
Consolidated Company Bonds - 19.8 19.1
Accounts Payable 109.8 98.4 90.7
Non-current Liabilities 40.9 36.2 36.8
Equity Capital 114.0 109.6 84.5
Total Balance 318.2 303.3 274.4
Current Ratio 1.41 1.35 1.32
Quick Ratio 1.11 1.04 1.02
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Growth Engines
Leading large-scale projects as a project manager:Dealing with projects while improving profitability and growth in working shares in projects
Expansion of metal operations in fields benefitting from large-scale investment volumes:Power plants, transportation infrastructure, petrochemicals
Acceleration of construction activities and the strategic positioning of the company as a total solution provider
Strengthening export of specialized vehicles through activity in a number of new territories with a wide range of products
Increasing production capacity, inter alia, in light of the completion of the deal with Koor and the expected increase of the scope of activity in the production of steel assemblies
Strengthening new areas of activity: natural gas delivery infrastructure for natural gas conversion plants, sustainable and solar energy
Expanding strategic partnerships with various companies for the production of armored vehicles to different markets
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Objectives for 2016 - 2017
Successful implementation of Koor Metal assets, in order to support the expansion of the company's activity
Increasing the number of projects involving the company in both metal and construction, combined
Development of engineering capabilities, allowing the company to bid on complex tenders
Development and production of a range of specialized vehicles according to the requirements of customers in Israel and abroad
Thank
You