Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — FY2009 Earnings Presentation
20 slides from Lecico Egypt Sae's earnings presentation, March 2010
Slide 1: An Egyptian Exporter: Full Year 2009 Results Presentation
An Egyptian Exporter Full Year 2009 Results Presentation March 2010
Slide 2: Corporate Summary
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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 Kfarchima • Lecico was founded in 1959 and has been majority owned by 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 •c 60% of sanitary ware is exported • USD 10/piece cost (50% of peers) Egypt and Lebanon •SW exports 12% CAGR (2000-09) • c USD 1.50/piece s
Slide 6: Domestic market leadership
Domestic market leadership Market leadership in Egypt Sanitary ware market (4.5 million pieces)1 Tile market (80 million m2)1 7% • Leading sanitary 23% 25% Cleopatra • Competitive pricing to 7% Lecico Cleopatra ware market share Pharaos support distributors’ 8% 38% Gravena Lecico sanitary ware sales
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 5,000 65% 80% • Lecico exports c60% of its sales vs. 20% for local peers 62% 58% 60% 4,000 56% 59% 60% 3,000 51% 46% 42% 50% • Lecico sells to ove
Slide 8: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$14/ piece – In Egypt, ceramic manufacturing cost averages US$10 / piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly high
Slide 9: Growth strategy
; tie 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
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Slide 12: FY 2009 results overview
FY 2009 results overview Strong recovery in 4Q leaves full year performance flat on 2008 – despite major slowdown in Europe • 2009 revenue fell 2% to LE 1,055.2m, with sanitary ware revenues down 5% as a result of the decline ASP due to exchange rates and a decrease in exports. This was offset by a
Slide 13: Profit and loss
Profit and loss Net sales Cost of sales breakdown LE million Exports (%) 59.9% 1,400 52.7% 51.3% 52.3% 60% Raw materials (28%) 49.6% 49.2% 1,200 44.1% 50% Other materials (14%) 1,000 39.1% 36.3% 40% 800 Energy (12%) 30% 600 Salaries and wages (13%) 20% 400 200 10% Depreciation (10%) 265 382 559 697
Slide 14: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit 350 160 50% 300 140 37% 38% 37% 36% 36% 35% 34% 35% 36% 35% 35% 35% 35% 35% 40% 250 Revenues (LE m) 120 34% 34% Gross Profit (LE m) Gross margin (%) 200 100 30% 80 150 60 20% 100 40 10% 50 20 157.7 185.8 183.3 192.6 231.5 239.5 257.2 261.3 264.1 287.4 295.
Slide 15: Segmental analysis
Segmental analysis Sanitary ware – sales volumes and revenue Sanitary ware – selling price and cost per piece Sanitary ware – gross profit and margin 5.6 140 350 60% 700 5.6 6.0 5.3 50% 120 300 46% 50% 600 4.6 44% 42% Gross margin (%) 5.0 Gross profit (LE m) 36% Volumes (pcs m) 4.3 36% Revenues (LE
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Days 400 350 300 250 200 150 . 100 50 204 216 98 323 266 208 126 348 217 129 99 246 192 96 103 185 209 78 126 160 242 110 99 253 254 122 135 241 210 109 109 210 224 70 99 195 222 82 97 207 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Inventory days
Slide 17: Revenues and margins
Revenues and margins Segmental sales breakdown Sanitary ware sales volume by geography Sanitary ware export volumes by geography FY 08 FY 09 FY 09 FY 08 FY 09 FY 08 Sanitary ware (60%) Sanitary ware (58%) Egypt (39%) Egypt (37%) Europe (80%) Europe (80%) Tile (40%) Tile (42%) Lebanon (3%) Lebanon (3
Slide 18: Share performance and data
Share performance and data
Slide 19: 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$ 135 million with a 55% free float 9 50 8 45 – Almost all activity has moved from GDR to local share 7 40 – Local share trades US$ 283,000 per da
Slide 20: 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