Modivo Sa · GPW:MDV
Modivo Sa — CCC Group — Q4 2005 Earnings Presentation
32 slides from Modivo Sa's earnings presentation, 2006
Slide 1: Presentation to Investors Group 4Q2005
Presentation to Investors Group 4Q2005
Slide 2: Presentation Plan
Presentation Plan Introduction Finances Realization of goals & plans for future Forecast 2006 Plans General review of CCC Group History CCC operating structure and strategy Sales structure – distribution chain Historical finances
Slide 3: CCC Group
CCC Group #1 ON POLISH FOOTWEAR MARKET CCC Group is an undisputed leader on the Polish footwear manufacturing and distribution markets Largest retail chain in terms of stores and turnover, one of two major manufacturers 343,7 mln turnover EoY 2005, 106,9 mln in the 4th quarter 2005 283 stores (31.01
Slide 4: Financials: 4th quarter of 2004 to 2005 comparison
Financials: 4th quarter of 2004 to 2005 comparison 4Q2004 4Q2005 Change `000 PLN `000 PLN Revenues 81 946 106 894 30 % Profit (loss) on sales 30 194 45 950 52 % Gross margin on sales 36,8% 43,0% 17 % Selling costs 13 961 21 854 57 % General administrative costs 1 876 5 597 198 % EBIT 13 240 18 685 4
Slide 5: Accrued financials: 4 quarters of 2004/2005
Accrued financials: 4 quarters of 2004/2005 4Q2004 4Q2005 Change `000 PLN `000 PLN Revenues 277 987 343 718 24 % Profit (loss) on sales 84 464 146 071 73 % Gross margin on sales 30,4% 42,5% 40 % Selling costs 41 850 73 462 76 % General administrative costs 10 980 17 722 61 % EBIT 29 197 54 783 88 %
Slide 6: We are effective 4Q2005
We are effective 4Q2005 We raised our sales by 24% We increased EBIT by 88% We worked out the net profit over 2times higher Sales increase in comparable stores by 6,23%
Slide 7: Sales revenues & net profit
Sales revenues & net profit 120 000 Quarterly sales revenues 2004/05 106 894 100 000 93 004 81 946 80 000 76 283 70 203 66 894 62 478 58 943 60 000 40 000 20 000 0 1Q 2004/05 2Q 2004/05 3Q 2004/05 4Q 2004/05 18 000 16 592 Quarterly net profit 2004/05 16 000 14 000 13 004 12 000 10 551 10 000 8 514 8
Slide 8: Sales revenues & net profit
Sales revenues & net profit 400 000 350 000 Accrued sales revenues after 4Q2004/05 343 718 300 000 277 986 250 000 231 765 196 040 200 000 155 482 150 000 129 146 100 000 58 943 62 478 50 000 0 1Q 2004/05 2Q 2004/05 3Q 2004/05 4Q 2004/05 50 000 45 000 Accrued net profit after 3Q2004/05 43 514 40 000
Slide 9: We keep our promises
We keep our promises Realization of operative goals in after 4Q2005: Opening 39 proprietary stores in attractive locations (plan: 35) Czech Republic: 7 stores Promotion: Successful campaign of Lasocki brand – Autumn 2005 (high brand recognizability, sales growth) Completed research upon market posit
Slide 10: Proprietary stores – openings in 4Q2005
Proprietary stores – openings in 4Q2005 OPENED trade are a o pe ning date Pro prie tary s to re s Tychy ul. Towarowa 2 - TES CO 238,00 2005-10-05 Katowice ul. P ułas kie go 60 - Trzy S tawy 330,00 2005-10-06 Chojnice ul. 31 S tycznia 25 - Ryne k 600,00 2005-10-08 Cie chanów ul. Wars zaws ka 14 - Ryn
Slide 11: Sales dynamics in the 4th quarter 2005 in comparable stores
Sales dynamics in the 4th quarter 2005 at the proprietory retail chain in comparable stores Months Accrued October 16,48% 5,40% November 10,34% 6,17% December 34,02% 6,23% We keep on increasing sales in the comparable retail units January 2004 / 2005 / 2006 25,00% 20,00% 15,00% 10,00% 21,22% 5,00% 6
Slide 12: 2006 Forecasts
2006 Forecasts Consolidated 2005 Forecast Change (PLN mln) 2006 Revenues 343,72 412,0 +20,0 % EBIT 54,78 75,0 +36,0 % Net profit 43,51 61,0 +40,2 %
Slide 13: Plans for 2006
Plans for 2006 Opening further 40 proprietary stores in Poland by the end of 2006 Launching new distribution channel – 15 stores by the end of 2006 Opening 10 stores in the Czech Republic by the end of 2006 Introducing new motivative remunerating systems in our retail chain Sales increase in the com
Slide 14: Retail network development
Retail network development Pro prie to ry sto re s Russia EoY2005 108 + 6D 2007 3 (Mos cow) 2006 +40 Ta rg e t: app. 50 2007 +40 2008 +20 Bo utique s To ta l: app. 200 + 150F 2007 +18 2008 +17 To ta l: 35 Cze ch Re public "S a lo n" Line EoY2005 7 2006 15 2006 +10 2007 +30 2007 +10 2008 +30 2008 +10
Slide 15: Proprietary stores – signed agreements
Proprietary stores – signed agreements Previous brand Ag re e me nt No . Ope ning da te City Na me Trade ce nte r Are a da te 1. 2006-01-28 To ru 507 2. 2005-05-31 2006-02-24 Bia łysto k 480 3. 2004-09-03 2006 I half Bia łysto k FOCUS PARC FOCUS PARC 329 4. 2006-01-03 2006 I half Ka lisz TES CO,- TE
Slide 16: Proprietary stores – signed agreements
Proprietary stores – signed agreements ‘Salon’ line Ag re e me nt No . Ope ning da te City Tra de ce nte r Are a da te 1. 2006 II ha lf Cze la d M1 240 2. 2006 II ha lf Ka lisz Carrefour 200 3. 2006 II ha lf Opo le real 200 4. 2006 II ha lf Za brze Geant 180 5. 2006-02-23 2006 II ha lf Zie lo na Gó
Slide 17: Proprietary stores – signed agreements
Proprietary stores – signed agreements Czech Republic No. Opening date City Trade Center Area 1. 2006 Mos t CENTRUM Novy Most 450 2. 2006 Praha PLAZA 400 3. 2006 Ces ke Budejovice Nakupni Centrum 455 4. 2006 Praha Ruzyne Nakupni Centrum SESTKA 340 5. 2006 Brno 6. 2006 Plzen 7. 2006 Os trava 8. 2006
Slide 18: Proprietary stores
Proprietary stores Area increase in existing stores in 2006 No . City Tra de ce nte r Pre vio us a re a Enla rg e d a re a 1. Gdynia Ba tory 135 500 2. Wars z awa Wile s ka 320 470 3. S o s no wie c Aucha n 295 370 4. Pło c k Aucha n 266 346 5. Kato wic e Ce fic 139 500 6. Kie lc e Echo 290 570 7. K
Slide 19: Development
Development Company development requires reorganization Target: Management of various brands and retail chains without launching new subsidiaries Compa ny XXX Dis tribution channel CCC Boutique s S a lon Line Leading brands : 1 brand 1 brand # Las ocki Strengths # Clara Bars on # Ottimo Homogenous s
Slide 20: Category footwear Analysis of competitors
Category footwear Analysis of competitors
Slide 21: Methodology
Methodology Category: Analysis covers footwear market. The category was divided into four areas: Ladies’ and mens’ footwear Children’s shoes Sport shoes Footwear of special use Analysis comprises CCC core business: Ladies’ and mens’ footwear In every area, all of the active advertisers were subject
Slide 22: Expenses of main advertisers
Expenses of main advertisers In the categoty Ladies’ and mens’ footwear ‘000 PLN 12 000 10 000 8 000 6 000 4 000 2 000 0 2002 2003 2004 I-X 2005 CCC SA DEICHMANN - OBUWIE SP. Z O.O. ECCO POLSKA SP. Z O.O. ARCOBALENO GINO ROSSI S.A. DR. SCHOLL NORD SŁUPSKA FABRYKA OBUWIA MULTI BRAND SP. Z O.O. BADURA
Slide 23: Footwear manufacturers – competitors analysis
Footwear manufacturers – competitors analysis Main players 2004 Reklamodawca PLN NIKE 12,468,543 CCC SP. Z O.O. 8,496,657 DEICHMANN - OBUWIE SP. Z O.O. 6,686,308 PUMA 4,975,195 REEBOK POLAND 4,737,043 ARCOBALENO 4,563,301 BARTEK S.C. 3,968,176 AMBRA CENTRUM OBUWIA 2,397,006 GINO ROSSI S.A. 2,337,656
Slide 24: Footwear manufacturers – competitors analysis
Footwear manufacturers – competitors analysis Main players 2005 Reklamodawca PLN CCC SA 11,330,980 DEICHMANN - OBUWIE SP. Z O.O. 6,730,499 NIKE 5,998,675 PUMA 4,216,158 REEBOK POLAND 4,010,466 ECCO POLSKA SP. Z O.O. 3,489,465 ADIDAS 2,604,993 ARCOBALENO 2,388,954 GINO ROSSI S.A. 2,315,942 BARTEK S.C
Slide 25: CCC Group - OVERVIEW
CCC ccc Group - OVERVIEW 25
Slide 26: Historical Background
Historical Background 15 years of experience CCC Ltd New storage transformed and head office into facilities CCC stock in Legnica Trading company Special comapny Economic Zone CCC Ltd. ‘Miłek’ First share established CCC Factory quotation on established established GPW 1990 1996 1999 2000 2001 2004
Slide 27: Operating Structure of CCC Group
Operating Structure of CCC Group as of 31.01.2006 2 3 283 stores: Domestic Foreign suppliers suppliers Czech Rep. Discounts (9) (5) Proprietary stores (108) 1 In-house Efficient manufacturing logistics production Final Flexibility of only for supplying CCC need Ordering client based on Tax advantage
Slide 28: Distribution chain – franchised & partner shops
Distribution chain – franchised & partner shops as of 31.01.2006 Number of franchised & partner locations 2001- 2005 300 161 shops: 121 franchised shops, 40 partner 250 shops, slightly smaller average shop area Numbe r of s tore s (appr.190 m2) 200 150 45 278 Wide group of 40 franchisers 260 100 213
Slide 29: Distribution chain – proprietary stores
Distribution chain – proprietary stores as of 31.01.2006 Proprietary shops in Poland 120 107 40 3 108 proprietary stores of average area 37, 100 78 30 about 360 m2 80 Area in '000 m2 Amount of stores 22,8 60 50 20 Additionally 5 discounts (without CCC 40 3 brand) to sell end of stock supplies 13, 18
Slide 30: Selected financials
Selected financials CCC Group consolidated 2001 2002 2003 2004 2005 ‘000 PLN ‘000 PLN ‘000 PLN ‘000 PLN ‘000 PLN Revenues 268 217 291 347 245 982 277 987 343 718 Profit (loss) on sales 30 356 41 542 57 899 84 464 146 071 Gross margin on sales 11,32% 14,26% 23,54% 30,4% 42,5% Selling costs 6 050 8 94
Slide 31: Selected financials – continued
Selected financials – continued CCC Group consolidated 2001 2002 2003 2004 2005 ‘000 PLN ‘000 PLN ‘000 PLN ‘000 PLN ‘000 PLN Assets 101 991 135 793 142 355 180 595 208 930 Liabilities and provisions 80 990 113 036 108 849 55 917 40 960 Long-term liabilities 13 321 4 592 2 493 11 714 2 204 Short-term
Slide 32: Thank you for your attention
Thank you for your attention Polkowice, ul. Strefowa 6 59-101 Polkowice tel.: (076) 845 84 00 Fax: (076) 845 84 00 e-mail: ccc@ccc.com.pl Adres www: www.ccc.com.pl