Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — Q2 2011 Earnings Presentation
22 slides from Lecico Egypt Sae's earnings presentation, September 2011
Slide 1: An Egyptian Exporter: 2Q 2011 Results Presentation
An Egyptian Exporter 2Q 2011 Results Presentation September 2011
Slide 2: Corporate Summary
>) Corporate Summary |
Slide 3: Introduction: An Egyptian exporter
Introduction: An Egyptian exporter Lecico Egypt S.A.E. is one of the world’s largest sanitary ware producers and a large tiles producer Lecico was founded in 1959 and has been majority owned by Kfarchima the Gargour family since 1969 Established 1959 Vitry Le Francois The company has a global
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 58% of sanitary ware is exported • USD 13.80/piece cost (40% of peers) Egypt and Lebanon •SW exports 9% CAGR (2000-10) • c USD 1.50/piece
Slide 6: Domestic market leadership
Domestic market leadership Market leadership in Egypt Sanitary ware market (5.8 million pieces)1 Tile market (80 million m2)2 16% • Leading sanitary • Competitive pricing to 23% 25% Cleopatra Lecico ware market share support distributors’ 34% Aracemco Pharaos 5% sanitary ware sales Cleopatra • 2.0m
Slide 7: Growing exports
Growing exports Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter Exports/total Pieces (000) 4,000 80% • Lecico exports c60% of its sales vs. 20% for local peers 65% 62% 60% 56% 59% 58% 58% 3,000 51% 46% 42% 50% 60% • Lecico sells to over
Slide 8: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$14.90/piece – In Egypt, ceramic manufacturing cost averages US$13.80/piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly h
Slide 9: Growth strategy
4 — -” — 4RzZ Growth strategy
Slide 10: Long-term commercial strategy
Long-term commercial strategy Expand regional and international exports Aim to increase market growth UK, Ireland, France Potential future markets Germany, Italy, Algeria, Saudi Arabia, Iraq, Syria, Poland New and expanded OEM contracts – Sanitec, Heritage, SFA and others Build multi-brand
Slide 11: Financial overview
Financial overview
Slide 12: Profit and loss
Profit and loss Net sales Cost of sales breakdown (1H 11) EBIT Net Profit 12
Slide 13: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit EBIT Net Profit 13
Slide 14: 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 14
Slide 15: 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 15
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Returns and leverage Capital expenditures 2011e Project Investment cost (LE m) 2011e Maintenance work 30.0 Gres Porcellanato Tile plant phase 1 35.0 Casting shop expansions 30.0 Frit and Brassware 2.0 Total planned specific project capex 97.0 16
Slide 17: P&L summary 2Q 2011
P&L summary 2Q 2011 Income statement 2Q % 1H % (LE m) 2011 2010 11/10 2011 2010 11/10 Net sales 249.7 255.7 98% 465.2 525.2 89% Cost of sales (176.7) (164.6) 107% (321.9) (340.6) 95% G ross profit 73.0 91.1 80% 143.3 184.6 78% Gross margin (%) 29.2% 35.6% (6.4%) 30.8% 35.1% (4.3%) Distribution an
Slide 18: Segmental Analysis 2Q 2011
Segmental Analysis 2Q 2011 Sanitary ware segmental analysis Tile segmental analysis 2Q % 1H % 2Q % 1H % 2011 2010 11/10 2011 2010 11/10 2011 2010 11/10 2011 2010 11/10 Sanitary ware volumes (000 pcs) Tile volumes (000 sqm) Egypt (000 pcs) 460 527 87% 777 1038 75% Egypt (000 sqm) 4,548 3,997 114% 8,0
Slide 19: Balance Sheet Summary 2Q 2011
Balance Sheet Summary 2Q 2011 Balance Sheet (LE m) 30-Jun-11 31-Dec-10 1H11/FY10 (%) ash and short-term investments C 196.3 112.4 175% Inventory 541.9 473.3 115% Receivables 300.2 318.4 94% Related parties -debit balances 52.5 42.6 123% Total current assets 1,091.0 946.7 115% Net fixed assets 633
Slide 20: Share performance and data
Share performance and data
Slide 21: Shareholding structure and performance
Shareholding structure and performance Liquidity has moved to local share and improved Lecico share price Lecico valued at a market cap of US$ 106 million with a 51% free float – All activity has moved from GDR to local share – As part of its annual profit distribution, Lecico increased number of
Slide 22: 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