Grupa Forte Spolka S.a. · GPW:FTE
Grupa Forte Spolka — Fabryki Mebli FORTE — FY2014 Earnings Presentation
23 slides from Grupa Forte Spolka's earnings presentation, Mar 20, 2015
Slide 1: Presentation of the Annual Results 2014
E Presentation of the Annual Results 2014 March 20, 2015
Slide 2: A European Leader in the Production of RTA Furniture
A EUROPEAN LEADER IN THE PRODUCTION OF READY-TO-ASSEMBLE (RTA) FURNITURE FABRYKI MEBLI nFORTE” S.A.
Slide 3: Company history and market capitalization
FABRYKI MEBLI nFORTE” S.A. 1992 — Fabryki Mebli,, FORTE” incorporated | 1996 - Shares of FORTE introduced to the main section of the Warsaw stock exchange Turnover reaches 200 min EUR | 350 min EUR Market cap (in March 2015) amounts to
Slide 4: State-of-the-art Production Facilities
FABRYK! MEBLI nFORTE” S.A. State-of-the-art Production Facilities iY - ! BIALYSTOK MAZOWIECKA - @)
Slide 5: Typical assortment of a large furniture store
Typical assortment of a large furniture store 23% Upholstered & Bedding Furniture Kitchen & Bathroom Furniture Seating Home Furniture - RTA FABRYKI MEBLI = Home Furniture - Others »FORTE”S.A. 5
Slide 6: The European RTA market
FABRYKI MEBLI nFORTE” S.A. The European RTA market Belgium, Italy Netherlands, 12% Luxembourg 7% Spain, Portugal United Kingdom 14% France 15% Germany 23% The yearly value of sales for the European RTA market is estimated at a level of 17 bn EUR
Slide 7: Leading position in a growing market segment
Leading position in a growing market segment J Ready-to-assemble (RTA) furniture growing in popularity f Mid-price - mainstream ¥ Country specific designs of furniture collections FABRYKI MEBLI »FORTE”S.A. 7
Slide 8: European RTA furniture producers with yearly turnover above 100 m EUR
European RTA furniture producers witha yearly turnover above 100 m EUR Alsapan, France Black Red White S.A., Poland Fabryki Mebli Forte S.A., Poland Groupe Parisot, France Meubles Demeyere, France Rauch Moebelwerke, Germany Tvilum Aps, Denmark Names in alphabetical order FABRYKI MEBLI nFORTE” S.A.
Slide 9: FORTE products available in the whole of Europe
tend FORTE products available in the whole of Europe a» anal Sales to over 30 countries world-wide .) y 82% of production exported ; Own sales organizations in the most important markets FABRYK! MEBLI nFORTE” S.A.
Slide 10: Sales by region
Europa Niemieckojęz. German-speaking Europe Polska Poland Europa Środkowa Central and i Wschodnia Eastern Europe Europa WesternZachodnia Europe other than German speaking 18% 11% 15% 56%
Slide 11: FORTE's competitive advantage - fulfilling our customers' expectations
FORTE’s competitive advantage - fulfilling our customers’ expectations Own design adjusted to each of the markets and sometimes even individual customers - some 40% of the offer is replaced in each year Direct deliveries to individual customer outlets - even only 1 mixed pallet same time Ability to
Slide 12: Achievements of the last years
Achievements of the last 2 years Sales increased by over 40 % - entrenched position on our main markets -— especially DACH f Active sales development in large important markets — France, Spain, Great Britain ff Optimization of production processes and investments in the machinery stock to match a st
Slide 13: Targets for the next years
Targets for the next 2 years Increasing FORTE’s turnover to more than EUR 250 million Maintaining EBITDA at above 13% of sales S\N | \f Further improvement and integration of logistic processes rf Diversification of both the offer and the distribution channels - Further development of the Assembled
Slide 14: Pillars of our success
Pillars of our success Long-term relationships with large furniture distribution chains Safeguarding of raw material supplies for the coming years Production capacity Investment plan calls for an increase of production capacity by more than 40% within the next 3 years Ongoing development and enlargi
Slide 15: Strategic Objectives
FABRYK! MEBLI nFORTE” S.A. Strategic Objectives Shareholders Vv Regular Dividend Payments + PLN O,75 per share for 2011 * PLN O,75 per share for 2012 * PLNO,95 per share for 2012 * PLN 1,50 per share for 2013 + PLN ... pershare for 2014 A Active and transparent shareholder relations Value Creation A
Slide 16: Sales revenues
FABRYKI MEBLI nFORTE” S.A. Sales revenues 2010 2011 2012 2013 2014 © Sales revenues (TSD PLN) 16
Slide 17: Net profit
FABRYKI MEBLI nFORTE” S.A. Net profit 2010 2011 2012 2013 2014 oe Netresult (TSD PLN) 17
Slide 18: Income statement summary 2012-2014
1 000 PLN 2012 2013 '13/'12 2014 '14/'13 Revenues from sales 555 253 666 365 20,0% 822 414 23,4% Gross profit on sales 181 813 241 441 32,8% 298 151 23,5% Gross margin 32,7% 36,2% 3,5% 36,3% 0,0% Sales costs -112 030 -133 919 19,5% -166 673 24,5% Result on sales 69 783 107 522 54,1% 131 478 22,3% Sa
Slide 19: Financial Position
Financial Position 2012 2013 2014 Current Ratio 2,66 3,21 3,17 Quick Ratio 1,52 2,00 1,85 Debt ratio 0,28 0,31 0,34 ROE 10,0% 15,1% 17,8% FABRYKI MEBLI nFORTE” S.A.
Slide 20: Hedging of FORTE's FX position
FABRYK! MEBLI nFORTE” S.A. Hedging of FORTE’s FX position Call EUR/PLN == Spot Put 5,09 - 4,89 - 4,69 - 4,49 - Ts OO SO = yd “wb 4,09 - 3,89 1.23.45.678 91miud12 3,456 7,8 91nnz123.45.67,8 91mu2123 2014 2015 2016 2017
Slide 21: Development of the FORTE share price against WIG40
FABRYKI MEBLI nFORTE” S.A. Development of the FORTE share price against WIG40 —Forte: +373% 60,00 —MWIG40: +46% 50,00 40,00 30,00 20,00 10,00 - 0,00 2013-01-01 2013-04-01 2013-07-01 2013-10-01 2014-01-01 2014-04-01 2014-07-01 2014-10-01 2015-01-01 P/E = 19,15 P/BV = 3,44 21
Slide 22: FORTE
FORTE f Long-term development strategy f The increase in turnover goes along with increasing profitability A Strong financial foundations f Active and transparent relationship with investors - regular dividend payments FABRYKI MEBLI FORTE” S.A. 22
Slide 23: www.forte.com.pl
www forte.com.pl FABRYKI MEBLI FORTE S.A.