Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — FY2017 Earnings Presentation
17 slides from Lecico Egypt Sae's earnings presentation, March 2018
Slide 1: An Egyptian Exporter: Full Year 2017 Results Presentation
Slide 2: Corporate Summary
Corporate Summary
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 • c45% of Lecico’s sanitary wa
Slide 4: A major sanitary ware exporter
A major sanitary ware exporter
Slide 5: 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 70% of its sanitary ware sales value and over 60% of volume vs. 20% for local peers (FY17) • Lecico sells to over 50 countries
Slide 6: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$11.50/piece (FY 2017) – In Egypt (without costs of subsidiaries/consolidation) manufacturing cost averages US$8.40/piece of sanitary ware (FY 2017) – Our information suggests other l
Slide 7: Financial overview
= -“_ 0 Ly § eA ® ‘ - fs 2 oe fie o Financial overview
Slide 8: Profit and loss
Profit and loss Net sales Cost of sales breakdown (FY 2017) EBIT Net Profit * * = 2013 net profit excludes write-off for France 8
Slide 9: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit EBIT Net Profit 9
Slide 10: P&L Breakdown by Quarter
P&L Breakdown by Quarter Lecico Group 2016 2017 2014 2015 2016 2017 Profit & Loss (LE Million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY Sanitary Ware 166.3 197.1 194.1 276.5 336.9 359.2 396.7 404.4 746.6 718.2 834.0 1,497.3 Tiles 138.8 137.8 129.5 193.4 185.8 212.6 216.2 216.0 780.5 605.4 599.5 830.7 Bra
Slide 11: 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 Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin 11
Slide 12: Quarterly Key Segmental Trends
Quarterly Key Segmental Trends Sanitary ware sales volumes Sanitary ware average price and cost Tiles sales volumes Tile average price and cost 12
Slide 13: All Segmental Breakdowns by Quarter
All Segmental Breakdowns by Quarter Lecico Group 2016 2017 2014 2015 2016 2017 Sanitary Ware Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY Volume (000's pieces) Egypt 534 451 553 645 491 418 496 419 2,066 1,995 2,183 1,825 Lebanon 37 37 37 41 30 38 41 37 150 109 151 146 Exports 553 721 688 693 731 72
Slide 14: Working Capital and Returns
Working Capital and Returns Working capital Returns and leverage Capital expenditures 2018f Maintenance Capex and tile diversification investment LE 110.0m 14
Slide 15: Share performance and data
are performance and data rm PET a
Slide 16: Shareholding structure and performance
Shareholding structure and performance Lecico buys 10% of shares as treasury stock Lecico share price • Lecico Acquired 10% of shares (8m shares) on 31/07/2017 – Shares were acquired at LE 6.0 per share (a premium of 33% to market price at time of offer) – Investors submitted 15.02 million shares to
Slide 17: 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