Bet Shemesh Engines Holding Ltd. Company profile

Transcription

1 Bet Shemesh Engines Holding Ltd. Company profile 2015

2 Business Card Bet Shemesh Engines Ltd. manufactures parts for jet engines, overhauls and maintains engines and assemblies, develops and manufactures jet engines Established by Turbomeca and the Israeli Government 1981 Fully acquired by the Government of Israel 1984 Thames Holdings (a subsidiary of Pratt & Whitney) acquired 40% 1992 Ormat acquired 60% from the State of Israel and in 1995 acquired the remaining shares from Thames Holdings 1997 Bet Shemesh Engines Holdings was established, became public, traded in Tel Aviv Stock Exchange 2003 Acquired a wholly owned subsidiary in Serbia "LIVNICA PRECIZNIH ODLIVAKA 2005 Clal Industries own 36% of shares and Avner Shacham owns 27% 2

3 Stockholders of Bet Shemesh Engines Holdings Ltd. 3

4 Board of Directors Name Role Director As Of - Johanan Locker Rotem Shacham Zvi Tropp Nadav Kaplan Sigalia Heifetz Itzchak Amitay Chairman of the Board Director Independent Director External Director Director Director 22/08/ /03/ /08/ /10/ /11/ /04/2015 4

5 Share Price The company s shares are traded in Tel Aviv Yeter Index, as part of the metal industry and building products sector. Share price increased by 500% since January The Company engaged a market maker to increase tradability. Bizportal 5

6 Dividend Policy Dividend policy is to distribute at least 30% of the company s current profits, subject to legal restrictions and avoiding significant harm to the cash flow and/or work plans. Dividend distribution over recent years: September 2014 June 2013 March 2012 April ,252,500 NIS, 0.63 Shekel per share 9,585,000 NIS, 1.42 Shekel per share 1,485,000 NIS, 0.22 Shekel per share 945,000 NIS, 0.14 Shekel per share 6

7 Organization Structure President & CEO Avner Shacham R&D Moshe Shapira MRO Yossi Miller Sales & Marketing Avigdor Hirsch & Avishai Raz Production Yossi Klein Finance Gil Carmeli Quality Assurance Jacob Maayan Casting Tal Gordon LPO, Serbia Alexander Miskovic Legal Counsel Oded Pincas Human Resources Ziv Stern 7

8 Human Resources The Company has 550 employees and 62 employees in Serbia (LPO) BSEL LPO Production Engineers 65 4 Quality Control Management

9 Technological capabilities The production divisions have advanced technological capabilities enabling customers to benefit from the one stop shop concept including casting, machining, balancing and assembly of complete engine assemblies for a variety of the world's most advanced civil engines. In the last decade the company advanced its capabilities in the manufacture of complex parts and those that are technology intensive, combining interactive production of castings and machining. These capabilities make this company unique in its field in the world. The company has test cells to run and test the most advanced engines, enabling the running and testing of engines and parts before returning them to the customer 9

10 Subsidiary in Serbia LPO (Livnica Preciznih Odlivaka) Acquired in 2003 it underwent reorganization to obtain certification from MTU, Pratt & Whitney and Eldim Expansion in Serbia has strategic advantages including growth in overseas markets, improving competitiveness in the foundry and machining, available technical personnel and proximity to European customers The company has a multi-year investment plan to expand its production capacity in LPO On September 30, 2014 a new Machining Factory was opened 10

11 Main Customers Pratt & Whitney & Hamilton MTU The Israeli Ministry of Defense Thai Army General Electric Mitsubishi Eldim Snecma Siemens Aggregate sales from top 5 customers was 79% of total sales in Majority of revenue is generated from long-term agreements of between 3-7 years. 11

12 Joint Development with MTU Falcon 7X PW 307 Accumulated Investment reached $12M, for 2.2% of revenue. See details on LearJet 85 program s future in 2014 Financial Report. Learjet 85 12

13 Real Estate The company owns acres in the West Industrial Area of Bet Shemesh. About 35 acres are designated for lease, with a fair value of about $13M, according to an appraisal made in Dec (cost on balance sheet is $0.8M). In 2011, the company capitalized a lease contract with the Israel Lands Administration for 49 years. 13

14 Financial Highlights ($ 000) Sales 77,982 79,505 72,706 60,588 51,599 Gross Profit 11,325 9,905 10,782 6,394 6,063 Net Income 3,928 3,993 5,237 1,288 1, Current assets 50,442 48,253 46,756 43,175 40,061 Inventories(*) 30,243 29,710 28,744 27,452 23,091 Liabilities to banks 10,565 9,431 11,637 16,346 22,652 Equity 41,320 38,618 36,732 32,051 31,359 (*) Short & Long Term Inventories 14

15 Profit Rate and Return on Equity (%) 15

16 90,000 80,000 70,000 60,000 50,000 40,000 30,000 45,102 Sales, EBITDA and Net Profit ($ '000) Sales EBITDA Net profit 51,599 60,588 72,706 79,505 77,982 20,000 10, ,339 6,492 7,663 3,153 4,049 4,222 5,237 3,993 3, ,022 1,

17 Sales and Added Value Per Employee ($ '000) 17

18 Currency Exposure The Company is exposed to changes in the Dollar value, as most of its revenue is denominated in Dollars, while some expenses are in Shekels (mostly salaries). Long term agreements with customers require the company to hedge against long term currency exposure, using various financial instruments. Current currency exposure from Operations is estimated at ~110M Shekels, with monthly exposure of about 9M Shekels. 18

19 Community activities The company sees great importance of contributing to the community. Activities include: Arranging technological conferences for teachers Collaboration with Government departments and Best Shemesh Municipality to establish a technology school on company s premises Collaborated with Ben-Shemen Youth Village to strengthen technology education. The students spend one day every week in the company to gain work experience Company engineers provide coaching to university students 19

20 Bet Shemesh Engines Holding Ltd. Tel: Fax: