1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005.
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Transcript of 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005.
1
Presentation to the Financial Community
Montreal and Toronto, Canada
January 18 & 20, 2005
2
Contents
Business Lines, Market Positioning and Strategic Outlook
Financial Review
F.G. Europe’s History
F.G. Europe at a Glance
Corporate Governance
CAPEX and W/C
Share Data
Dividend Policy
Main Points
3
4
6
22
23
28
32
33
34
3
F.G. Europe at a Glance
• 3 Main Business Lines:• Air Conditioners,• White Electrical Goods and• Mobile Telephony
• European Orientation:• Greece• Italy, France, Germany, Czech Rep.• Serbia & Montenegro, Bulgaria, Romania, Albania, Bosnia, FYROM
• Revenues Y2004: 208 mil. € (202 mil. € in Y2003)
• Market leader in Greek A/C market• Strong presence in Italy and upcoming
player in South East Europe• Exclusive representation of world class
brands like Fujitsu and own brands with high brand awareness for good quality
Warehouses in Piraeus, Greece
Headquarters in Athens, Greece
4
F.G. Europe’s History
Foundation of Viometal
Eskimo S.A.
1958
1968
IPO listing on the Athens
Stock Exchange
23rd Greek Manufacturer with over 23% market
share
1988
1973
Exclusive distribution agreement for Greece
with Fujitsu General Ltd. Renewed 1999 until 2009
Master dealer of TIM. Renewed 2000
sine die
1999
1997
Exclusive distribution agreement for Italy with Fujitsu General Ltd. until
2009
5
F.G. Europe’s History
2001
2003
Exclusive distribution agreement for South
East Europe with Fujitsu General Ltd. until 2011
Merger between F.G. Europe S.A. and Eskimo S.A.
2005
Exclusive distribution agreement for plasma
TVs and monitors for Italy with Fujitsu General Ltd.
until 2015
6
Air Conditioners Business Line
Own brandsExclusive Distribution
Brand names
7
• Over 1,200 sales points in Greece
• Over 250 sales points in Italy
• Over 20 selected wholesalers in South East Europe
• Over 17 years of excellent relationships with customers
• Ecologically friendly products with Refrigerant: R- 410a, R- 407c
F.G. EuropeWholesaler
Retail stores& Installers
Greece
South East Europe
SubsidiariesItaly
F.G. Europe’s Distribution Channels for A/Cs
• 15.5% market share in split units and 5% in light commercial systems
Air Conditioners Business Line
8
Air Conditioners: Sales
0
10
20
30
40
50
60
70
Mil. €
2001 2002 2003 2004
Q4
Q3
Q2
Q1
Year Mil. €
2001 53.30
2002 63.17
2003 67.46
2004 50.20
Air Conditioners Revenues
Product mix in 2003 vs. 2004 in Mil. €
51.57 40.86
9.3415.88
0.00
20.00
40.00
60.00
2003 2004
Branded Non branded
9
A/Cs: Exports & Market Shares
25%
7%
5%6%
5%
52%
Tenora & Aginor Carrier SoulisTrane F.G. Europe Others
Market shares in Greece (split units)
33.37%
19.19%
10.26%
31.41%
5.78%
Greece Italy Spain South East Europe Rest EU
Sales country mix in 2004
Market shares in Greece (light commercial systems)
7%
15%
8%
8%
6%
10%
46%
Tenora & Aginor CarrierSanyo Grissin PappasF.G. Europe DimitriouOhers
10
Air Conditioners : European Markets
Greece: 15.5%*
Italy: 3.5%
South East Europe:17.6%
*source: ICAP Company estimates on European AC Sales
11
Air Conditioners : European Markets
• Livorno Warehouse
Main Warehouse
• Thessalonica Warehouse
ITALIA
GREECE
ALBANIA
SERBIAMONTENEG
ROFYROM
BULGARIA
ROMANIA
BOSNIAHERZEGOVINA
• FG Italia Spa Dolo
12
Growth Drivers: Air Conditioners
Greek Market:
• Leading market position and innovative product portfolio
Other Markets:
• Organic growth potential in South Eastern Europe
• Increased export orientation
• World known brand names
• Product portfolio in line with market trends of increased demand for low cost high reliability appliances
• Own brand names without territory restraints
• World known brand names
13
White Electrical Goods Business Line
Own brand
Exclusive Distribution
Manufacturing Partners
14
White Electrical Goods: Sales
0
2,000
4,000
6,000
8,000
10,000
Thousands €
2001 2002 2003 2004
Q4
Q3
Q2
Q1
Year Mil. €
2001 8.42
2002 6.54
2003 7.55
2004 6.88
White Electrical Goods Revenues
Product mix in 2003 vs. 2004 in Th. €
984
2,661 2,888
1,418 1,5641,782 1,4411,688
0
1,000
2,000
3,000
4,000
2003 2004
Refrigerators Washing MachinesCookers Others
4%16%
30%11%
2%
37%
Others F.G. Europe BSHFourlis Trade Electrolux Miele
Market Shares in 2003
15
• Strategic cooperation with leading world class manufacturers
Greek Market:• Innovative product portfolio enhanced with
appliances with low penetration in the population
South East Europe:
• Organic Growth through use of existing strong distribution channels of A/Cs
• Leverage on best value for money
• Own brand name with 94% brand awareness among the Greek population
• Over 1,000 sales points in Greece
White Electrical Goods: Growth Drivers
16
143%
94%
28%
98%
40%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Fridges Washers Dryers Cookers Dish-washers
Source: Merloni data
White Electrical Goods: Penetration
Penetration in Southern Europe
17
Mobile Telephony Business Line
Own brand
18
Mobile Telephony Business Line
• Master dealer of in all mobile products for the last 8 years
• Wholesale of prepaid scratch cards for the last 3 years:
50,000 mobile telephony subscriptions
50 resellers all over Greece
20 resellers all over Greece
Strong and expanding market position: Increase in market share from 17% to 21% in 2004
19
Mobile Telephony: Sales
0
50
100
150
200
Mil. €
2001 2002 2003 2004
Q4
Q3
Q2
Q1
Year Mil. €
2001 25.15
2002 39.42
2003 127.33
2004 150.84
Mobile Telephony Revenues
21%
35%
19%
25%
F.G. Europe Germanos MTC Others
Source: Vodafone and Company estimates
Mobile Telephony Market Shares in 2004
• Annual Market Volume for prepaid scratch cards in Greece was € 720 mil. in 2003 (Providers estimates)
• Penetration 85% of total population (9.31 mil. Users of which 65% use prepaid services)
20
New Strategic Business Line
• Exclusive distribution of Fujitsu General, Ltd. for Greece, Italy and
South Eastern Europe• Introduction on all markets of OEM
manufactured plasma TVs under own brand name
Plasma TVs
Own brandExclusive Distribution
21
Business Line: Plasma TVs
Expected Development for Large Displays (Plasma & LCD >40’’) in EMEA
130,836
9,280,366
404,641368,7220
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2003 2004 2005 2006 2007 2008
PrivateBusiness
Quantity in Units
22
CAPEX and W/C
(in mil. €) 2005 2006 2007
CAPEX
Air conditioners 1.5 2.0 2.5
White electrical goods 0.5 1.0 1.0
Mobile Telephony 0.2 0.3 0.4
Plasma TVs 0.2 0.5 1.0
Total 2.4 3.8 4.9
Working Capital
Air conditioners 20.0 22.0 25.0
White electrical goods 2.0 3.0 4.0
Mobile Telephony 0.5 1.0 1.5
Plasma TVs 0.5 1.0 2.0
Total 23.0 27.0 32.5
23
Key Financial Figures: Revenues
Consolidated Revenues
0
50
100
150
200
250
Mil. €
2001* 2002* 2003** 2004
Q4
Q3
Q2
Q1
88.6112.2
185.7208.1
*Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002
**Restated
24
Key Financial Figures: P&L
(in mil. €) 9M, 2004 2003** 2002* 2001*
Revenues 166.21 186.57 112.19 88.60
Gross Margin 12.99 21.58 14.45 12.47
Operational Expenses 7.18 10.03 8.43 7.13
EBITDA 5.81 11.56 6.39 5.37
Financial result, net -1.82 -2.91 -3.86 -3.55
Profits before tax 3.73 6.80 4.14 2.16
Profits after tax - 4.89 2.60 1.02
(in €)
EPS (gross) - 0.13 0.07 0.04
EPS (net) - 0.09 0.04 0.02
Dividends - 0.07 0.05 0.02
Management culture/orientation towards shareholders value creation
*Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002 **Restated
25
Key Financial Ratios: P&L
9M, 2004 2003 2002 2001
Gross Margin 7.82% 11.54% 12.88% 14.08%
Expenses as % revenues
4.32% 5.37% 7.51% 8.04%
Financial result as % of revenues
1.09% 1.59% 3.44% 4.01%
EBT as % revenues 2.23% 3.65% 3.69% 2.44%
Creation of Shareholder value through expenses and interest cost reduction
0%
2%
4%
6%
8%
9M, 2004 2003 2002 2001
Expenses as % of revenues
0%
1%
2%
3%
4%
9M, 2004 2003 2002 2001
Financial result as % of revenues
26
Key Financial Figures: Balance Sheet
(in mil. €) 9M, 2004 2003 20021 20011
Cash 11.53 1.87 1.99 4.41
Receivables 52.67 56.08 45.94 48.61
Inventory 26.92 15.20 16.76 60.99
Equity 21.73 18.02 16.78 17.24
Liabilities 19.04 28.71 13.62 29.19
Financial liabilities 66.37 35.34 36.85 80.34
Total Assets 108.29 82.11 67.04 126.55
Balance Sheet structure improved
¹ Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002
27
Other Key Ratios
9M, 2004 2003 2002 2001
Collection period (days) 87 109 149 200
Inventory turnover (days) 48 34 63 292
Payment period (days) 34 64 35 118
Current ratio 2.95 1.24 1.77 1.41
Quick ratio 2.19 1.00 1.32 0.68
Equity ratio 20% 21% 25% 14%
Improved operating management: Continuously reducing collection and inventory turnover period
0
50
100
150
200
9M, 2004 2003 2002 2001Collection Period
0
50
100
150
200
250
300
9M, 2004 2003 2002 2001Inventory turnover in days
28
Shareholders Structure
Free float >46% with over 13,000 individual Stockholders
Shareholders: Ownership Total
George Fidakis 53.60%
Greek Institutionals 9.43%
Foreign Institutionals 6.12%
Fujitsu General (Euro) GmbH 4.38% 10.50%
Retail Investors 26.47%
Total: 100.00%
53,187,840 common shares outstanding @ 0.30 € par
29
The F.G. Europe Share
• Last Closing: € 3.42 (January 12, 2005)• Market Capitalization > 181.9 mil. €
30
Share Information
• Trading Symbols: ΕΣΚ (ASE),ESC GA (Bloomberg), ESKR.AT (Reuters), FGE.STU (Boerse Stuttgart), ISIN GRS083003012
As of January 12, 2005 1W 1M 3M 6M 1Y 2Y
Performance 0% 3.64% -2.84% -11.40% -13.20% -10.94%
High 3.42 3.28 3.26 3.26 4.42 4.42
Low 3.40 3.44 3.52 3.86 3.26 2.13
Ø Volume shares 85K 61K 47K 48K 70K 122K
Ø Volume in € 287K 201K 157K 167K 266K 338K
• Indices: ATG, FTSE-40, Wholesale Index, MSCI Small Cap Greece, Eurobank Mid-Cap Private Sector 50
31
Listed Convertible Bond
Trading Information
Exchange Athens Stock Exchange
Last closing 101%
ISIN GRC083004873
Fundamental Information
Issue date August 3, 2004
Maturity August 2, 2007
Issue volume 16,621,200 €
Par value 100.00 €
Coupon 3.8% semiannually
Conversion rate 1 : 22 common shares
Conversion price 4.5454 €
Redemption price 112.2%
32
Dividend Policy
• Our policy is to distribute satisfactory dividend given that the results and operating cash flow allow it
• For the fiscal year 2004 there are two options one is to buy back shares or to distribute dividends.
For the fiscal year 2004 the Board of Directors intends to propose to the Extraordinary General Assembly of Shareholders in February 8, 2005 instead of dividend
distribution a share buy back program.
33
Corporate Governance
• Board of Directors consists of 5 executive and 4 non-executive and independent Members (Audit committee)
• Transparency: ad-hoc disclosures, shareholding structure, related party securities transactions
• Reporting: Audited Financial statements are published quarterly according to Greek GAAP and from 2005 according IFRS
• Risk Management and Internal Control procedures
• Important decisions are reserved to the approval of the General Assembly of shareholders
34
Key Points
• Organic growth
• Operational excellence
• Solid shareholders’ structure
• Cost and expenses reduction
• Continuous profitability
• Market leader in Air Conditioners business
• Long history
• Increased export orientation
35
DISCLAIMERThis presentation contains forward-looking statements. These statements appear in a number of places in this presentation regarding the intent, belief or current expectations with regard to our customer and supplier base, future growth, market share, financial results and other aspects of our business activities and the markets in which we operate.Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors.Addressees are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. F.G. Europe undertakes no obligation to update publicly or revise any forward-looking statements,as a result of events or circumstances after the date of this presentation, including, but not limited to changes in economic conditions, F.G. Europe’s business strategy or the occurrence of other unanticipated events.
F.G. Europe S.A., 128, Vouliagmenis Ave., GR-16674 Glyfada, Greece
Tel.: +30 210 9697800, Fax: +30 210 9603802,
Email: [email protected] http://www.fgeurope.gr