Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — FY2013 Earnings Presentation
18 slides from Lecico Egypt Sae's earnings presentation, March 2014
Slide 1: Full Year 2013 Results Presentation
NY WSs Eg ; wy =~ yptian Exporter “Full Year2013 Results Presentation *) March 2014
Slide 2: Corporate Summary
Corporate Summary
Slide 3: Introduction: An Egyptian exporter
Introduction: An Egyptian exporter Lecico Egypt S.A.E. – one of the world’s largest sanitary ware producers and a large tiles producer – was founded in 1959 and has been majority owned by the Gargour family since 1969 Kfarchima The company has a global competitive advantage making Established 19
Slide 4: Corporate Profile
Corporate Profile
Slide 5: Investment case
Investment case Experience Regional leadership Growing exports Significant cost advantage •Brand with over 50 years of history • Sanitary ware market leader in •c 55% of sanitary ware is exported • USD 14.60/piece cost (40% of peers) Egypt and Lebanon •SW exports 2.5% CAGR (2004-13) • c USD 1.50/pie
Slide 6: Growing exports
Growing exports Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter • Lecico exports c53% of its sales vs. 20% for local peers • Lecico sells to over 50 countries (including OEM sales) • Approximately 24% of exports (13% of sanitary ware sal
Slide 7: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$14.60/piece – In Egypt, manufacturing cost averages US$11.14/piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly higher in
Slide 8: Growth strategy
Growth strategy
Slide 9: Corporate strategy
Corporate strategy Expand regional and international exports Aim to increase market growth UK, Libya and Egypt Potential future markets Morocco, Algeria, KSA Germany, Poland, Nordics New and expanded OEM contracts – Sanitec, Heritage, SFA and others Commercial Export strategy: Offer more f
Slide 10: Financial overview
Financial overview
Slide 11: Profit and loss
Profit and loss Net sales Cost of sales breakdown (2013) EBIT Net Profit 11
Slide 12: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit EBIT Net Profit 12
Slide 13: Segmental analysis
Segmental analysis Sanitary ware – sales volumes and revenue Sanitary ware – selling price and cost per piece Sanitary ware – gross profit and margin Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin 13
Slide 14: Quarterly Segmental trends
Quarterly Segmental trends Sanitary ware average price, cost and profit per piece Sanitary ware sales volume Tile Average Price, Cost and Profit per sqm Tile sales volume 14
Slide 15: Balance sheet and cash flow
Balance sheet and cash flow Working capital Returns and leverage Capital expenditures 2014e Tile Capacity Expansion (3/4 of total) 36.5 Maintenance Capital Expenditure 50.0 Total Capital Expenditure 86.5 15
Slide 16: Share performance and data
Share performance and data
Slide 17: Shareholding structure and performance
Shareholding structure and performance Liquidity has moved to local share and improved Lecico local share price Lecico valued at a market cap of US$ 118 million with a 51% free float – All activity is in the local share although a GDR does exist – Local share trades US$ 52,800 per day and on 90% o
Slide 18: Thank you
Thank you For additional information, please contact: Taher G. Gargour Telephone: +203 518 0011 Fax: +203 518 0029 E-mail: [email protected] Visit our website at: www.lecico.com Forward-looking statements: This presentation may contain certain “forward-looking statements”, relating to Lecico Egypt