Lecico Egypt Sae · EGX:LCSW
Lecico Egypt Sae — Q2 2009 Earnings Presentation
20 slides from Lecico Egypt Sae's earnings presentation, August 2009
Slide 1: An Egyptian Exporter: 2Q 2009 Results Presentation
An Egyptian Exporter 2Q 2009 Results Presentation August 2009
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 Kfarchima • Lecico was founded in 1959 and has been majority owned by 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 60% of sanitary ware is exported • USD 9.16/piece cost (50% of peers) Egypt and Lebanon •SW exports 12% CAGR (2000-08) • c USD 2.00/piece
Slide 6: Domestic market leadership
Domestic market leadership Market leadership in Egypt Sanitary ware market (4.5 million pieces)1 Tile market (80 million m2)1 7% • Leading sanitary 23% 25% Cleopatra • Competitive pricing to 7% Lecico Cleopatra ware market share Pharaos support distributors’ 8% 38% Gravena Lecico sanitary ware sales
Slide 7: Growing exports
Growing exports Growth in group’s exports Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter Pieces (000) Exports/total 4,000 65% 80% • Lecico exports c60% of its sales vs. 20% for local peers 62% 58% 59% 59% 3,000 56% 60% 51% 46% 42% 50% • Lecico sells to over 50 c
Slide 8: Significant cost advantage
Significant cost advantage International cost advantage Lecico produces sanitary ware at an all-in average cost of US$13.5/ piece – In Egypt, ceramic manufacturing cost averages US$9.1 / piece of sanitary ware – The difference reflects higher packing costs for EU-destined exports and significantly h
Slide 9: Growth strategy
sf 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, Algeria, Saudi Arabia, Iraq, Syria • New and expanded OEM contracts – Sanitec, Heritage, SFA and others Build multi-brand and service op
Slide 11: Financial overview
“VY - Financial overview
Slide 12: 1H results overview
1H results overview 1H 09: Weaker sales but growth in operating profits due to cost cutting and weaker Euro and Sterling • Revenue fell 7% to LE 515m, with sanitary ware revenues down 17% as a result of a the significant decline ASP due to exchange rates and a decrease in export volumes. This was of
Slide 13: Profit and loss
Profit and loss Net sales Cost of sales breakdown (YTD June 2009) LE million Exports (%) 59.9% 51.3% 57.1% 1,200 52.7% 51.2% 60% Raw materials (29%) 49.6% 49.2% 1,000 44.1% 50% Other materials (18%) 39.1% 800 36.3% 40% Energy (12%) 600 30% Salaries and wages (13%) 400 20% 200 10% Depreciation (10%)
Slide 14: Quarterly P&L Trends
Quarterly P&L Trends Net sales Gross profit 160.0 50% 350 140.0 300 37.0% 37.7% 35.6% 35.7% 34.9% 35.4% 35.6% 35.1% 35.5% 40% 120.0 34.2% 33.8% 34.8% 33.9% 34.8% Gross margin (%) Gross Profit (LE m) Revenues (LE m) 250 100.0 30% 200 80.0 60.0 20% 150 40.0 100 10% 20.0 50 56.1 66.4 64.0 65.9 78.3 84.
Slide 15: Segmental analysis
Segmental analysis Sanitary ware – sales volumes and revenue Sanitary ware – selling price and cost per piece Sanitary ware – gross profit and margin 700 5.6 6.0 350 60% 5.3 140 600 300 4.6 5.0 50% Gross margin (%) 120 Gross profit (LE m) 4.3 36% 50% Volumes (pcs m) 4.0 Revenues (LE m) 500 3.9 250 4
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Working capital Days 400 350 300 250 200 150 . 100 50 204 216 98 323 266 208 126 348 217 129 99 246 192 96 103 185 209 78 126 160 242 110 99 253 254 122 135 241 210 109 109 210 224 80 99 205 240 95 109 226 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 1H 09 Inventory day
Slide 17: Revenues and margins
Revenues and margins Segmental sales breakdown Sanitary ware sales volume by geography Sanitary ware export volumes by geography FY 08 1H 09 FY 08 1H 09 FY 08 1H 09 Sanitary ware (60%) Sanitary ware (57%) Egypt (39%) Egypt (38%) Europe (80%) Europe (80%) Tile (40%) Lebanon (3%) Lebanon (3%) Middle E
Slide 18: Share performance and data
i Share performance and data ,. a ea. 'F eid | s |
Slide 19: Liquidity has moved from GDR to local share
Liquidity has moved from GDR to local share • Lecico valued at a market cap of US$ 114 million with a 55% free float – Almost all activity has moved from GDR to local share with GDR trading around 1 day per Shareholding structure Concord month since the beginning of the year PE 9% – Local share trad
Slide 20: 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