Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — Q2 2012 Earnings Presentation
19 slides from Lecico Egypt Sae's earnings presentation, August 2012
Slide 1: Second Quarter 2012 Results Presentation
: ie “SY ptian Exporter Second Quarter 2012 Results Presentation *) August 2012
Slide 2: Corporate Summary
~~ Corporate Summary
Slide 3: Introduction: An Egyptian exporter
Introduction: An Egyptian exporter Lecico Egypt S.A.E. is one of the world’s largest sanitary ware producers and a large tiles producer Lecico was founded in 1959 and has been majority owned by Kfarchima the Gargour family since 1969 Established 1959 Vitry Le Francois The company has a global
Slide 4: Corporate Profile
Bi \yt UE au Co porate Profile SS Se
Slide 5: Investment case
Investment case Experience Regional leadership Growing exports Significant cost advantage •Brand with over 50 years of history • Sanitary ware market leader in •c 57% of sanitary ware is exported • USD 13.50/piece cost (40% of peers) Egypt and Lebanon •SW exports 6% CAGR (2000-11) • c USD 1.50/piece
Slide 6: Domestic market leadership
Domestic market leadership Market leadership in Egypt Sanitary ware market (5.8 million pieces)1 Tile market (80 million m2)2 16% • Leading sanitary • Competitive pricing to 23% 25% Cleopatra Lecico ware market share support distributors’ 34% Aracemco Pharaos 5% sanitary ware sales Cleopatra Lecico
Slide 7: Growing exports
Growing exports Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter Pieces (000) Exports/total • Lecico exports c56% of its sales vs. 20% for local peers 4,000 65% 80% 62% 60% 58% 3,000 51% 46% 50% 56% 59% 58% 57% 60% • Lecico sells to over
Slide 8: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$15.50/piece – In Egypt, ceramic manufacturing cost averages US$13.50/piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly h
Slide 9: Growth strategy
Growth strategy
Slide 10: Long-term commercial strategy
Long-term commercial strategy Expand regional and international exports Aim to increase market growth UK, Ireland, France Potential future markets Germany, Italy, Algeria, Saudi Arabia, Iraq, Poland, Nordics New and expanded OEM contracts – Sanitec, Heritage, SFA and others Build multi-bra
Slide 11: Financial overview
Financial overview
Slide 12: Profit and loss
Profit and loss Net sales Cost of sales breakdown (1H 2012) EBIT Net Profit 12
Slide 13: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit EBIT Net Profit 13
Slide 14: Segmental analysis
Segmental analysis Sanitary ware – sales volumes and revenue Sanitary ware – selling price and cost per piece Sanitary ware – gross profit and margin Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin 14
Slide 15: Quarterly Segmental trends
Quarterly Segmental trends Sanitary ware average price, cost and profit per piece Sanitary ware sales volume Tile Average Price, Cost and Profit per sqm Tile sales volume 15
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Returns and leverage Capital expenditures 2012e Export Warehouse 2.0 Tile Capacity Expansions 3.0 Borg 1& 2 3.0 Borg 3&4 2.0 Borg 5&6 (Sanitary) 1.0 Frit Plant 1.0 Faucet Plant 0.5 Pressure Casting 0.5 Khorshid 10.0 Total planned specific project capex 23.
Slide 17: Share performance and data
Share performance and data rg ue is.
Slide 18: Shareholding structure and performance
Shareholding structure and performance Liquidity has moved to local share and improved Lecico share price Lecico valued at a market cap of US$ 734 million with a 51% free float – All activity is in the local share although a GDR does exist – Local share trades US$ 70,800 per day and on 99% of trad
Slide 19: Thank you
Thank you For additional information, please contact: Taher G. Gargour Telephone: +203 518 0011 Fax: +203 518 0029 E-mail: tgargour@lecico.com Visit our website at: www.lecico.com Forward-looking statements: This presentation may contain certain “forward-looking statements”, relating to Lecico Egypt