Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — Q4 2008 Earnings Presentation
20 slides from Lecico Egypt Sae's earnings presentation, March 2009
Slide 1: An Egyptian Exporter: 4Q 2008 Results Presentation
An Egyptian Exporter 4Q 2008 Results Presentation March 2009
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 •c 60% of sanitary ware is exported • USD 9.16/piece cost (50% of peers) Egypt and Lebanon •SW exports 12% CAGR (2000-08) • c USD 2.00/piece
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 4,000 80% • Lecico exports c60% of its sales vs. 20% for local peers 62% 65% 56% 59% 58% 3,000 51% 50% 60% 46% 42% • Lecico sells to over 50 count
Slide 8: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$14.72 / piece – In Egypt, ceramic manufacturing cost averages US$9.16 / piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantl
Slide 9: Growth strategy
4 ‘ Growth strategy
Slide 10: Long-term sanitary ware growth strategy
Long-term sanitary ware growth 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 Expand production cap
Slide 11: …translates into concrete actions
…translates into concrete actions Strategy Action Expand regional and international exports Expand regional and international exports ● Aim to increase market growth ● Unbranded sales to UK builders merchants - 15% of Lecico Plc sales in 2008 (from nothing in 2005) − UK, Ireland, France ● Sales to D
Slide 12: Financial overview
(fae de Fi 23 nancial overview =>:
Slide 13: Strong year despite weak 4Q performance
Strong year despite weak 4Q performance Solid growth across the P&L for FY 2008 despite… • Sales up 9%, gross profit and EBIT up 10% and net profit up 2% year-on-year • Strong Egyptian market demand – 40% growth in Egyptian revenues • Price increases – Average sanitary ware price up 3% and average t
Slide 14: Profit and loss
Profit and loss Net sales Cost of sales breakdown (2008) LE million Exports (%) 1,200 59.9% 51.3% 70% 1,000 49.6% 52.7% 60% Raw materials (29%) 49.2% 44.1% 50% Other materials (16%) 800 39.1% 36.3% 40% Energy (15%) 600 30% Salaries and wages (15%) 400 20% Depreciation (8%) 200 10% Other costs (16%)
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 140 350 60% 700 5.6 6.0 5.3 120 300 50% Revenues (LE m) 600 4.6 Volumes (pcs m) 4.3 5.0 46% 36% 50% Gross profit (LE m 250 46% Gross margin (% 500 4.0
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Days 300 250 200 150 100 . 50 204 216 98 271 266 208 126 226 217 129 99 99 192 96 103 105 209 78 126 73 242 110 99 162 254 122 135 171 210 109 109 147 112 80 99 156 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Inventory days (Inventory/cost of sales) Rec
Slide 17: Revenues and margins
Revenues and margins Segmental sales breakdown Sanitary ware sales volume by geography Sanitary ware export volumes by geography 2007 2008 2007 2007 2008 2008 Egypt (30%) Egypt (39%) Europe (86%) Europe (80%) Sanitary ware (68%) Sanitary ware (60%) Lebanon (5%) Lebanon (3%) Middle East (9%) Middle E
Slide 18: Summary Income Statement
Summary Income Statement Profit and loss statement highlights 4Q % FY % (LE m) 2008 2007 08/07 2008 2007 08/07 Sanitary ware 125.5 179.0 70% 651.0 667.9 97% Tiles 108.1 82.3 131% 429.6 321.5 134% Net sales 233.5 261.3 89% 1080.7 989.5 109% Sanitary ware/net sales (%) 5 3.7% 68.5% (14.8%) 6 0.2% 67.5
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Balance Sheet (LE m) 31-Dec-08 31-Dec-07 FY08/FY07 (%) Cash and short-term investments 196.0 29 3.9 67% Inventory 431.2 37 0.2 117% Receivables and related party d ebit balances 235.6 29 2.8 80% Total current assets 862.8 95 6.9 90% Net fixed assets, intangibles and other no
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