Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — FY2010 Earnings Presentation
22 slides from Lecico Egypt Sae's earnings presentation, March 2011
Slide 1: An Egyptian Exporter: Full Year 2010 Results Presentation
An Egyptian Exporter Full Year 2010 Results Presentation March 2011
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
Corporate Profile
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 •c58% of sanitary ware is exported • USD 10.50/piece cost (50% of peers) Egypt and Lebanon •SW exports 9% CAGR (2000-10) • cUSD 1.50/piece s
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 • 2.0m
Slide 7: Growing exports
Growing exports Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter Exports/total Pieces (000) 4,000 80% • Lecico exports c60% of its sales vs. 20% for local peers 65% 62% 60% 56% 59% 58% 58% 3,000 51% 46% 42% 50% 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$13.5/piece – In Egypt, ceramic manufacturing cost averages US$10.0/piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly hig
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, Algeria, Saudi Arabia, Iraq, Syria New and expanded OEM contracts – Sanitec, Heritage, SFA and others Build multi-brand and service op
Slide 11: Financial overview
Financial overview
Slide 12: Profit and loss
Profit and loss Net sales Cost of sales breakdown (FY 10) LE million Exports (%) 1,200 75% Raw materials (28%) 51% 52% 60% 48% 65% 1,000 50% 49% 53% 55% Other materials (14%) 44% 800 39% 36% 45% Energy (13%) 600 35% 25% Salaries and wages (14%) 400 15% 200 Depreciation (10%) 5% 265 382 559 697 652 7
Slide 13: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit 350 160 50% 140 300 37% 38% 37% 38% 35% 36% 35% 36% 36% 40% 120 34% 35% 35% 34% 35% 35% 35% Revenues (LE m) Gross margin (%) Gross Profit (LE m) 250 100 30% 200 80 60 20% 150 40 100 10% 20 50 78.3 84.9 91.5 91.6 91.9 106.3 100.1 81.2 86.0 102.8 94.4 99.6 9
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 140 60 350 60% 700 5.6 5.6 6.0 5.3 5.0 300 600 120 50 4.6 5.0 50% 4.3 50% Gross margin (%) 36% Gross profit (LE m) 4.0 46% Volumes (pcs m) 100 250 Rev
Slide 15: Quarterly Segmental trends
Quarterly Segmental trends Sanitary ware average price, cost and profit per piece Sanitary ware sales volume 140 50 1,600 80% 45 1,400 70% 120 40 1,200 60% 100 35 30 1,000 50% 80 25 800 40% 60 20 600 30% 40 15 10 400 20% 20 5 200 10% 0 0 0 0% 1Q 07 2Q 07 1Q 08 4Q 08 1Q 09 4Q 09 1Q 10 4Q 10 3Q 07 4Q
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Days 200 180 160 140 120 100 80 . 60 40 20 132 129 99 162 116 96 103 109 119 78 126 71 152 110 99 163 165 122 135 152 137 109 109 136 146 80 99 126 141 93 97 137 169 129 124 175 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Inventory days (Inventory/sales
Slide 17: P&L summary 4Q and FY 2010
P&L summary 4Q and FY 2010 Income statement 4Q % FY % (LE m) 2010 2009 10/09 2010 2009 10/09 Net sales 239.9 267.0 90% 1,019.2 1,055.2 97% Cost of sales (148.3) (167.4) 89% (651.9) (672.1) 97% Gross profit 91.6 99.6 92% 367.3 383.1 96% Gross margin (%) 38.2% 37.3% 0.9% 36.0% 36.3% (0.3%) Distribu
Slide 18: Segmental Analysis 4Q and FY 2010
Segmental Analysis 4Q and FY 2010 Sanitary ware segmental analysis 4Q % FY % 2010 2009 10/09 2010 2009 10/09 Sanitary ware volumes (000 pcs) Egypt (000 pcs) 348 513 68% 1,866 2,034 92% Lebanon (000 pcs) 41 43 95% 202 179 113% Export (000 pcs) 669 873 77% 2,899 3,364 86% Total sanitary ware volumes (
Slide 19: Balance Sheet Summary YE 2010
Balance Sheet Summary YE 2010 Balance Sheet (LE m) 31-Dec-10 31-Dec-09 FY10/FY09 (%) Cash and short-term investments 112.4 99.6 113% Inventory 473.3 408.5 116% Receivables 318.4 237.6 134% Related parties -debit balances 42.6 32.0 133% Total current assets 946.7 777.7 122% Net fixed assets 663.3 6
Slide 20: Share performance and data
Share performance and data
Slide 21: Shareholding structure and performance
Shareholding structure and performance Liquidity has moved to local share and improved Lecico share price comparison Lecico valued at a market cap of US$ 173 million with a 51% free float 9 50 8 45 – Almost all activity has moved from GDR to local share 7 40 – As part of its annual profit distribu
Slide 22: 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