libet s.a. company presentation · * according to pmr research, 2011 ** measured as standard...
TRANSCRIPT
LIBET S.A. – COMPANY PRESENTATION SEPTEMBER 5TH 2012
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Management Board
Ireneusz Gronostaj Member of the Management Board CFO of Libet S.A.
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Thomas Lehmann President of the Management Board CEO of Libet S.A.
Robert Napierała Member of the Management Board CCO of Libet S.A.
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Agenda
Libet at a glance
Libet after H1 2012
Strategy
Short-term plans
Summary
LIBET AT A GLANCE
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* According to PMR research, 2011 ** Measured as standard concrete block equivalent, assuming 200 production days per year.
The largest player on the concrete block paving market in Poland: a 23% market share*
Undisputed leader of the premium concrete block segment: a 32% market share*
14 manufacturing plants
24 lines
Annual capacity of 14m square metres of concrete block paving**
Over 500 staff.
Poland’s leading manufacturer of concrete block paving
ZDJĘCIE DO UZUPEŁNIENIA
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Established presence across all major segments of the paving market and mitigated risk of fluctuating market cycles
Diversified offering and multiple applications of Libet products
Religious buildings Hotels and other commercial
buildings
Urban space Shopping centres and
office buildings
Residential development
projects
Private development
Sports facilities
Service stations Car parks
Logistics centres
Road and motorway shoulders
Squares and pavements
Premium segment
Industrial segment significant share in the industrial segment – benefiting from the infrastructural sector’s growth in 2011 and 2012
growing importance due to high margins and sound long-term growth prospects
LIBET S.A. AFTER H1 2012
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Focus on sales margins and cash flows in the face of the current climate in the construction industry – tightening of the trade credit policy and deliberate reduction of sales to customers who may have difficulties in meeting their liabilities
Successful implementation of a comprehensive ERP IFS Applications system, being the most advanced solution of this type on the market.
Execution of projects worth PLN 10m
Launch of an investment project to install a new line for treatment and processing of paving elements at the Libiąż plant: cost of PLN 3.2m, completion scheduled for late 2012.
Key events in H1 2012
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Expansion of the premium product offering to include 40 new items:
− Development of sales of products resembling natural stone (split products) – including steps, bricks, garden stones, palisades – offered as of the 2012 season
− Broadening of the range and colour mix of other premium segment products – including Colormix
− Launch of sales of custom-made products for the most demanding customers: Libet Stampo – as of June 2012.
Key events in H1 2012
H1 2011 H1 2012 1 H2012Standard
segment
13%
Industrial
segment
46%
Premium
segment
38%
Other
3%
1 H2012Standard
segment
19%
Industrial
segment
37%
Premium
segment
32%
Other
12%
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The concrete block paving market affected by the negative developments in the construction sector
Businesses consider that the general climate in the construction sector has deteriorated relative to 2011 (source: the Polish Central Statistics Office (GUS), July 2012)
30% of construction companies have difficulty in timely collection of receivables; the Polish Construction Employers Association estimates that as at June 30th 2012 payment delays in the sector amounted to PLN 4bn
In June 2012, cement sales declined by 19.4% year on year.
1) Total concrete block sales (square metres): in-house estimates based on BCMM, July 2012 2) Cement sales in Poland (thousand tonnes): the Polish Cement Association, July 2012
Year-on-year change in sales in H1 2012
-11.0%
-11.6%
-15,0% -10,0% -5,0% 0,0% 5,0%
Cement
Concrete blocks
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The decline in revenue in H1 2012 was chiefly attributable to deliberate efforts to reduce sales to customers representing high risk of insolvency, as well as the adverse weather conditions in Q1
Lower sales squeezed both gross and operating margins
Libet managed to maintain a healthy sales margin by focusing on the quality of sales and renegotiating the prices of raw materials.
Performance in H1 2012 – focus on the quality of sales and cash flows
PLN ‘000 H1 2012 H1 2011 Change
H1 2011/H1 2012
Revenue 84,559 114,421 -26.0%
Revenue from sales of
products 81,579 102,813 -20.6%
EBITDA 6,814 15,876 - 57.0%
EBIT - 1,720 7,460 -
Net profit -4,679 3,611 -
STRATEGY
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Consolidation of the clear lead in the premium concrete block paving segment:
• Increasing the share of premium products in total sales to 50% by 2015 • Investments to achieve further technology advancement • Continued development of the premium products offering
Product and geographical expansion
Further efficiency gains.
Premium segment
50%
Other segments
50%
2015 1H 2012
Planned evolution of the sales structure (in value terms)
Standard segment
13%
Industrial segment
46%
Premium segment
38%
Other3%
1 H2012
Consistently pursued strategy
SHORT-TERM PLANS
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Additional efforts aimed to enhance sales in the premium
segment – planned opening of the showcase garden in Łódź in September 2012
Completion of the investment project to install a new line
for treatment and processing of paving elements at the Libiąż plant – project scheduled for completion in late 2012
Completion of work by the Development Department aimed to further expand the premium offering: innovative shapes, new colours, new offering of custom-made Libet Stampo products – planned to be launched in 2013.
Short-term plans
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Products exhibited over an area of 2,500 sqm
The design concept based on a division of space into
overlapping zones representing various styles: modern,
rustic, urban, pastoral, etc. The ”water” zone complete with a small pond and a brook features the Endless Ribbon sculpture by Jerzy Dobrzański
Exhibited products include premium segment items of the Libet Decco, Impressio, Patio and Completto lines, as well as custom-made Libet Stampo features (balls, cubes, large vertical objects)
The objective behind the showcase garden: to inspire and
to educate.
Showcase garden in Łódź
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Showcase garden in Łódź
SUMMARY
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Libet enjoys the position of the largest player in the overall concrete block paving market, while standing out as the unquestionable leader in the premium segment of the market
In spite of the challenging market environment, sales margins remain strong thanks to renegotiation of the prices of raw materials and scaling back sales to customers who may may pose a credit risk
Libet has a clear growth strategy focused on development of the premium segment offering and expansion into new geographical markets.
Summary
THANK YOU