Lecico Egypt Sae · EGX:LCSW

Lecico Egypt Sae — FY2021 Earnings Presentation

18 slides from Lecico Egypt Sae's earnings presentation, March 2022

  1. Slide 1: Full year 2021 Results

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  2. Slide 2: Corporate Summary

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  3. Slide 3: Introduction: An Egyptian exporter

    Introduction: An Egyptian exporter  Lecico Egypt S.A.E. was founded in 1959 and has been majority owned by the Gargour family since 1969  The company has a global competitive advantage making European Kfarchima quality sanitary ware at Egyptian costs Established 1959  c80% of Lecico’s sanitary wa

  4. Slide 4: A major sanitary ware exporter

    A major sanitary ware exporter

  5. Slide 5: An export led sanitary ware business

    An export led sanitary ware business Large and independent Experience and quality OEM pedigree and history Significant cost advantage •The largest sanware factory in •Over 30 years of exports to Europe •Over 20 years of OEM experience • USD 17.50/piece cost (60% of peers) Europe, Middle East and Afr

  6. Slide 6: Significant cost advantage

    Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$17.50/piece (FY 2021) – In Egypt (without costs of subsidiaries/consolidation) manufacturing cost averages US$13.40/piece of sanware (FY 2021) – Our information suggests other low co

  7. Slide 7: Long-term commercial strategy

    Long-term commercial strategy Expand in Developed Markets  Increase own brand and white label  UK, Germany, France, Egypt  New and expanded OEM contracts  Lecico is reprioritizing OEM customers for long term potential returns given a surfeit of demand  New OEM customers in the US have been sign

  8. Slide 8: A major sanitary ware exporter to Europe

    A major sanitary ware exporter to Europe Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter • Lecico exports over 80% of its sanitary ware sales value Pieces (000) Exports/total 4,000 68% 70% 75% 80% 66% 58% 61% 3,500 3,000 55% 53% 56% 53%

  9. Slide 9: Financial overview

    Financial overview

  10. Slide 10: Profit and loss

    Profit and loss Net Sales Cost of sales breakdown 2021 LE million Exports (%) 57% 58% Raw materials (23%) 54% 3,000 52% 52% 60% 47% 2,500 50% Other materials (18%) 44% 42% 40% 40% 2,000 40% Energy (17%) 1,500 30% Salaries and wages (19%) 1,000 20% 500 10% Depreciation (4%) 1,279 1,501 1,573 1,371 1,

  11. Slide 11: Quarterly P&L Trends

    Quarterly P&L Trends Net sales Gross profit 160 50% 800 140 700 40% 120 600 Revenues (LE m) Gross margin (%) Gross Profit (LE m) 100 30% 25% 500 22% 22% 22% 18% 80 20% 20% 20% 16% 18% 400 18% 17% 20% 60 15% 15% 15% 300 11% 11% 40 10% 9% 9% 9% 7% 10% 200 20 3% 3% 27 31 23 72 134 131 126 141 144 124 1

  12. Slide 12: P&L Breakdown by Quarter

    P&L Breakdown by Quarter Lecico Group 2019 2020 2021 2016 2017 2018 2019 2020 2021 Profit & Loss (LE Million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY FY FY Sanitary Ware 370.9 380.6 357.7 306.9 305.5 213.1 334.3 345.9 358.2 411.9 429.5 408.2 834.0 1,497.3 1,617.2 1,416.1 1,198.7 1,607.8 Tile

  13. Slide 13: Key Segmental Analysis

    Key Segmental Analysis Sanitary ware – sales volumes and revenue Sanitary ware – selling price and cost per piece Sanitary ware – gross profit and margin 350 100 500 50% 1,800 5.7 5.3 6.0 5.3 90 5.1 5.1 5.0 450 1,600 5.0 300 4.8 4.7 5.0 80 400 1,400 40% Gross margin (%) Gross profit (LE m) 4.0 250 7

  14. Slide 14: Quarterly Key Segmental Trends

    Quarterly Key Segmental Trends Sanitary ware sales volumes Sanitary ware average price and cost 1,600 90% 350 120 1,400 80% 300 100 70% 1,200 250 80 60% 1,000 200 60 50% 800 40% 150 40 600 30% 100 20 400 20% 50 0 200 10% 0 (20) 0 0% 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4

  15. Slide 15: All Segmental Breakdowns by Quarter

    All Segmental Breakdowns by Quarter Lecico Group 2019 2020 2021 2016 2017 2018 2019 2020 2021 Sanitary Ware Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY FY FY Volume (000's pieces) Egypt 372 386 359 272 256 256 301 300 354 235 295 339 2,183 1,825 1,728 1,389 1,113 1,224 Lebanon 20 55 24

  16. Slide 16: Balance Sheet by Quarter

    Balance Sheet by Quarter Balance Sheet 2016 2017 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 (LE m) 4Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cash and short-term investments 377.4 261.3 186.9 153.6 148.5 133.0 129.0 231.6 216.7 179.2 119.4 154.7 155.8 145.3 177.1 Inventory 88

  17. Slide 17: Working Capital and Returns

    Working Capital and Returns Working capital Days 350 300 250 200 150 . 100 50 242 130 49 324 221 88 36 274 178 75 221 164 66 30 200 151 66 74 143 184 70 60 193 0 31 2016 2017 2018 2019 2020 2021 Inventory days (Inventory/Cost of sales) Receivables days (Receivables/net sales) Payables days (Payables

  18. Slide 18: 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

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