Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — FY2020 Earnings Presentation
18 slides from Lecico Egypt Sae's earnings presentation, March 2021
Slide 1: Full-year 2020 Results Presentation
Full-year 2020 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: 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 17.70/piece cost (70% of peers) Europe, Middle East and Afr
Slide 6: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$17.70/piece (FY 2020) – In Egypt (without costs of subsidiaries/consolidation) manufacturing cost averages US$13.10/piece of sanware (FY 2020) – Our information suggests other low co
Slide 7: Long-term commercial strategy
Long-term commercial strategy Expand in Developed Markets Increase own brand and white label UK, Germany, France, South Africa New and expanded OEM contracts Expected growth for OEM customers in Europe is an additional (over 2019) 300Ks+ pieces by 2021 New OEM customers in the US have been
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 75% of its sanitary ware sales value and over 70% of volume vs. 20% for local peers (FY20) • Lecico sells to over 50 countries
Slide 9: Financial Overview
: Atlas Professional Financial Overvi
Slide 10: Profit and loss
Profit and loss Net sales Cost of sales breakdown 2020 Raw materials (23%) Other materials (14%) Energy (19%) Salaries and wages (20%) Depreciation (5%) Other costs (18%) EBIT* Net Profit * * = 9M 2018 EBIT and Net profit includes LE 76.7m in one-off income 10
Slide 11: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit EBIT* Net Profit* * = 2018 includes LE 25.7m in one-off operating profit in 1Q and LE 51.0m in 2Q. 11
Slide 12: P&L Breakdown by Quarter
P&L Breakdown by Quarter Lecico Group 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Profit & Loss (LE Million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY FY FY FY Sanitary Ware 393.4 411.1 435.1 377.7 370.9 380.6 357.7 306.9 305.5 213.1 334.3 345.9 746.6 718.2 834.0 1,497.3 1,617.2 1,416.1
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 Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin 13
Slide 14: 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 14
Slide 15: All Segmental Breakdowns by Quarter
All Segmental Breakdowns by Quarter Lecico Group 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Sanitary Ware Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY FY FY FY Volume (000's pieces) Egypt 438 485 409 396 372 386 359 272 256 256 301 300 2,066 1,995 2,183 1,825 1,728 1,389 1,113 Leb
Slide 16: Balance Sheet by Quarter
Balance Sheet by Quarter Balance Sheet 2015 2016 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 (LE m) 4Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ash and short-term investments C 168.0 377.4 261.3 368.3 284.1 356.0 186.9 153.6 148.5 133.0 129.0 231.6 216.7 179.2 119.4 Inventor
Slide 17: Working Capital and Returns
Working Capital and Returns Working capital Returns and leverage Capital expenditures 2020f Maintenance Capex LE 75.0m 17
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