Concrete Fashion Group For Commercial And Industrial Investments S.a.e · EGX:CFGH
Concrete Fashion Group For Commercial And Industrial Investments S.a.e — Concrete Fashion Group — 9M 2024 Earnings Presentation
39 slides from Concrete Fashion Group For Commercial And Industrial Investments S.a.e's earnings presentation, 2024
Slide 1: Investor Presentation 9M 2024
Concrete Fashion Group 9M 2024 Investor Presentation
Slide 2: Table of Contents
About Concrete I Fashion Group Manufacturing II Segment TABLE OF III Retail Segment CONTENTS 9M 2024 IV Performance in Detail Governance and V Sustainability VI Appendix
Slide 3: About Concrete Fashion Group
ABOUT CONCRETE FASHION GROUP
Slide 4: CFG Overview
CFG Overview Shareholding Structure 2 +8,000 Integrated lines of Skilled Employees business operated and trained workers 12.0% 7.0 mn 81% 26.6% Pieces sold across retail Contribution of manufacturing 61.4% and manufacturing segments segment to the Group’s sales 5% +15 Share of Egypt’s Arafa Family A
Slide 5: CFG Business Segments
CFG Business Segments The Group’s manufacturing operations encompass three business units dedicated 81% to suits, shirts, and trousers. Today, the Group serves a wide portfolio of leading global brands across key markets around the world. More than 95% of Manufacturing Of combined1 Group net manufac
Slide 6: CFG History
CFG History CFG completes its demerger from Arafa Holding Concrete launches online stores in Qatar, Kuwait, Saudi Arabia, and UAE Mr. Abdel Maksoud CFG forms the Baird CFG relocates casual Arafa establishes Group to consolidate apparel business to Concrete designs 1907 himself as a fabric 2009 its o
Slide 7: CFG FY2023 Updates
CFG FY2023 Updates The Start of a New Journey On 24 March 2024, the Group announced the successful conclusion of the demerger process from Arafa Holding and the beginning of trading on Group’s stock under the ticker CFGH. Strategic Focus on Core Expand Retail Operations Grow RMG Export Business Loca
Slide 8: Manufacturing Segment
MANUFACTURING SEGMENT (Export Oriented)
Slide 9: Manufacturing Segment Overview
Manufacturing Segment Overview CFG operates three world-class apparel manufacturing facilities in Egypt Formal Wear Trousers Shirts Swiss Garments Company Swiss Cotton Garments Company Cristall for Making Shirts Egyptian Tailoring Company 1989 +5,000 2010 +1,700 2011 +900 Operating Since Workers Ope
Slide 10: Client Portfolio
Client Portfolio CFG actively serves a wide rage of leading fashion brands all over the world leveraging its superior quality and reliable services enables it to build long-lasting partnerships 95% Export Sales USD 116 mn Total exports in FY 2023 53% 47% Exports to North Exports to Europe America Co
Slide 11: Unique Value Proposition
Unique Value Proposition Time to Market Cost-competitive Environment Strategic Location Young and Large Population Egypt's location allows a competitive lead time on shipments and Egypt’s large and rapidly growing population provides access to a relatively low transportation costs. large pool of wor
Slide 12: Key Pillars of Our Expertise
Key Pillars of Our Expertise Expert Craftsmanship and Skilled Workforce Trusted Partner for Prestigious Fashion Houses Quality Assurance and Flexible Capacities Availability of Skilled and well-trained workers Strong reputation a one-stop destination Excellence in Quality and Customization On the ba
Slide 13: Manufacturing Segment Growth Strategies
Manufacturing Segment Growth Strategies CFG’s growth strategies in the manufacturing segment are focused on capturing a larger share of the fast-growing RMG market Optimizing Product Offering Attract World-Class Brands Strategic Focus Optimize client portfolio in favor of clients offering higher mar
Slide 14: Retail Segment
RETAIL SEGMENT
Slide 15: Concrete Overview
Concrete Overview CFG’s retail operations cover men's, teens, and kids wear Strong Brand Reputation Concrete, CFG’s flagship brand, has been a leader in the luxury apparel industry for more than 30 years. Concrete continues to engage in multi-platform marketing campaigns to grow awareness and recogn
Slide 16: Retail Segment Growth Strategies (I/II)
Retail Segment Growth Strategies (I/II) Expand Reach Grow Product Offering Strategic Focus Expand branch network targeting newly built neighborhoods and launch new Expand product offering and sizes seasonal stores to capitalize on seasonal demand to target new customer segments Recent Progress 10 SH
Slide 17: Retail Segment Growth Strategies (II/II)
Retail Segment Growth Strategies (II/II) Replicate Model Internationally Build Online Sales Presence Grow online sales to capitalize on huge market opportunity in Egypt and the Strategic Focus wider region Penetrate new regional markets characterized by high disposable income, attractive growth prof
Slide 18: 9M 2024 Performance in Detail
9M 2024 PERFORMANCE IN DETAIL
Slide 19: 9M 2024 Results Overview
9M 2024 Results Overview Consolidated3 Net Sales by Segment (9M 2024) 18% USD 29.2mn 102.0 USD 102.0 mn USD Consolidated EBITDA2 Sales mn Consolidated1 Net Sales Manufacturing 82% in 9M 2024 82% in 9M 2024 Retail 18% (▲64.2% y-o-y, (▼1.1% y-o-y) margin of 28.7%) Retail Pieces Sold by Business Un
Slide 20: Consolidated Income Statement (9M 2024) – I/II
Consolidated Income Statement (9M 2024) – I/II Consolidated Net Sales| USD mn Consolidated Gross Profit | USD mn 103.2 102.0 ▼1.1% 41.8 31.8 ▲31.2% 30.9% 41.0% 9M 2023 9M 2024 9M 2023 9M 2024 • Consolidated net sales for the nine-month period of 2024 recorded USD 103.8, down 1.1% y-o-y. • Consolidat
Slide 21: Consolidated Income Statement (9M 2024) – II/II
Consolidated Income Statement (9M 2024) – II/II EBITDA, EBITDA margin| USD mn • EBITDA recorded USD 29.2 million, up by 64.2% and yielding an associate margin of 28.7%, up 11.4 percentage points from 9M 2023. • This was driven by a decrease in SG&A/Sales from 13.2% to 29.2 11.9%, reflecting the Grou
Slide 22: Consolidated Balance Sheet (30 September 2024)
Consolidated Balance Sheet (30 September 2024) Receivables | USD mn Inventories | USD mn 95.6 92.6 48.9 40.2 1/31/2024 9/30/2024 1/31/2024 9/30/2024 Total Debt| USD mn Cash and Cash Equivalents | USD mn Annualized Net Debt/EBTDA| USD mn 128.5 125.4 3.12x 3.07x 10.5 6.1 1/31/2024 9/30/2024 1/31/2024
Slide 23: 9M 2024 Performance | Retail Results
9M 2024 Performance | Retail Results Consolidated Net Sales | USD mn Consolidated EBITDA | USD mn • During 9M 2024, the • The segment delivered a Group’s retail segment consolidated EBITDA of 19.6 18.4 recorded USD 18.4 million in USD 8.5 million in 9M 2024, ▼6.3% net sales, representing a reflectin
Slide 24: 9M 2024 Performance | Manufacturing Results
9M 2024 Performance | Manufacturing Results Consolidated Net Sales | USD mn Consolidated EBITDA | USD mn • The Group posted • Consolidated EBITDA grew Consolidated net sales of by 69.5% to reach USD 21.5 83.6 83.7 USD 83.7 million in 9M million, with an associated ▲0.1% 2024, up marginally by 0.1% 2
Slide 25: Governance and Sustainability
GOVERNANCE AND SUSTAINABILITY
Slide 26: Governance | Board of Directors
Governance | Board of Directors CFG is guided by a world-class Board of Directors with extensive experience across a multitude of sectors and geographies Mrs. Maria Cicognani Dr. Alaa Arafa Mr. Mohamed Talaat Mr. Mohamed Morsy Eng. Hani Berzi Non-Executive Independent Vice-Chairman & CEO Managing Di
Slide 27: Governance | Board Committees
Governance | Board Committees Audit Committee Compensation Committee Investment Committee Mr. Mohammed Fahmi Eng. Hani Berzi Mrs. Maria Cicognani Chairman Chairman Chairman Mrs. Maria Cicognani Dr. Alaa Arafa Mr. Mohamed Zaghloul Mr. Ahmed Yazid Mr. Mohamed Talaat Mr. Mohamed Daoud Mr. Mohamed Abdel
Slide 28: Executive Management
Executive Management Mr. Mohamed Morsy Dr. Alaa Arafa Mr. Mohamed Talaat Managing Director of Vice-Chairman & CEO Managing Director Financial Affairs Mr. Ahmed Edris Mr. Matteo Zappala Mr. Mohamed Badran GM, 10th of Ramadan COO, Retail Segment GM, Beni Suef Industrial industrial Complex Complex Conc
Slide 29: Sustainability | CSR Initiatives
Sustainability | CSR Initiatives CFG’s responsibilities extend beyond the production and distribution of best-in-class apparel, with the Group actively supporting its staff and the wider community Employee Support Programs Community Support Programs Yehia Arafa Children’s Charity Free Housing for Di
Slide 30: Appendix
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Slide 31: Consolidated Income Statement
Consolidated Income Statement Change versus last Change versus USD mn 9M 2023 9M 2024 9M 2024 Budget year budget Net Sales 103.2 102.0 -1.1% 130.2 -21.7% Cost of Goods Sold1 (71.3) (62.0) -13.1% (87.4) -29.0% Selling Investments at FVTPL - 1.8 - Gross Profit 31.8 41.8 31.2% 42.8 -2.4% Gross Profit M
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet USD mn 31 January 2024 30 September 2024 Non-Current Assets Property, Plant, and Equipment 42.8 42.9 Projects under Construction 3.2 1.0 Intangible Assets 4.1 4.0 Right of Use Assets 4.5 3.5 Total Non-current Assets 54.6 51.3 Current Assets Inventory 95.6 92.6 Work in Prog
Slide 33: Key Operational Figures
Key Operational Figures Pieces Sold 9M 2023 9M 2024 Change versus last year Retail 1,263.9 1,135.4 -10.2% Concrete 749.8 909.2 21.3% Euromed 514.2 226.2 -56.0% Manufacturing 4,076.8 3,828.0 -6.1% Casual Jackets 129.3 57.8 -55.3% Casual Trouser and Shorts 623.6 489.7 -21.5% Formal Jackets 706.3 680.6
Slide 34: Board of Directors Biographies (I/III)
Board of Directors Biographies (I/III) MRS. MARIA CICOGNANI DR. ALAA ARAFA Non-Executive Independent Chairperson Vice-Chairman & CEO Year of Appointment: 2021 Year of Appointment: 2006 Mrs. Cicognani is the non-executive director and chairperson of Mobius Investment Trust Dr. Arafa established Concr
Slide 35: Board of Directors Biographies (II/III)
Board of Directors Biographies (II/III) MR. MOHAMED TALAAT MR. MOHAMED MORSY MR. AHMED YAZID MR. MOHAMED DAOUD Managing Director Managing Director of Financial Affairs Non-Executive Board Member Non-Executive Board Member Year of Appointment: 2018 Year of Appointment: 2018 Year of Appointment: 2020
Slide 36: Board of Directors Biographies (III/III)
Board of Directors Biographies (III/III) MR. MOHAMED ZAGHLOUL ENG. HANI BERZI MR. MOHAMMED FAHMI MS. SHAMS ARAFA Non-Executive Board Member Non-Executive Board Member Independent Non-Executive Board Member Non-Executive Board Member Year of Appointment: 2020 Year of Appointment: 2018 Year of Appoint
Slide 37: Executive Committee Biographies
Executive Committee Biographies MR. MATTEO ZAPPALA MR. AHMED EDRIS Chief Operational Officer, Retail Segment General Manager, 10th of Ramadan industrial Complex Year of Appointment: 2024 Year of Appointment: 2017 Mr. Zappalà is the Chief Operational Officer for CFG’s retail Mr. Edris currently serve
Slide 38: Egypt Macroeconomic Picture
Egypt Macroeconomic Picture Real GDP Growth1 | % USD:EGP Exchange Rate2 -100% 6.7 47.99 50.67 5.2 5.6 5.1 30.89 48.9 3.8 4.1 18.96 16.26 24.25 2.7 7.16 15.71 2022 2023 2024 2025 2026 2027 2028 2014 2016 2018 2020 2022 2024 Inflation Rate2 | % Main Operations Rate2 | % Headline (y/y) Headline (m/m) 2
Slide 39: Egypt Competitive Advantages
Egypt Competitive Advantages Cost-competitive Environment USD:EGP Exchange Rate2 Competitive Minimum Wage2 Young and Large Population3 (monthly, USD) 440 Egypt’s Population 370 60+ years 6.6% 110 million -100% 45-59 years 12.3% 204 204 50.67 47.99 30-44 years 20.0% 30.89 48.9 124 118 18.96 16.26 24.
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