Presentation to investors Q4 2007

Transcription

1 Presentation to investors 1

2 PRESENTATION PLAN Introduction Finances Realization of goals Plans General review of NG2 Group 2

3 NG2 Group Largest retail chain in Poland Excellent profitability Leader in manufacturing leather footwear Unique business model NG2 Growing amount of proprietorystores in Poland and abroad Huge growth potential Strong brand 3

4 Finances Q4 2006/2007 Q `000 PLN `000 PLN Change Revenues ,4 % Profit (loss) on sales ,4 % Gross margin on sales 42,7% 53,0% 24,1 % Selling costs ,3 % General administrative costs ,4 % EBIT ,6 % Financial costs ,6 % Pre-tax profit (loss) ,1 % Net profit (loss) ,0 % Net profit margin 11,1% 11,2% 0,9 % Assets ,3 % Liabilities and provisions ,4 % Long-term liabilities ,7 % Short-term liabilities ,2 % Equity ,2 % ROE 7,7% 9,2% 20,0 % ROA 5,9% 5,6% -4,6 % 4

5 Accrued finances Q4 2006/ `000 PLN `000 PLN Change Revenues ,9 % Profit (loss) on sales ,5 % Gross margin on sales 45,4% 50,9% 12,1 % Selling costs ,2 % General administrative costs ,1 % EBIT ,0 % Financial costs ,5 % Pre-tax profit (loss) ,9 % Net profit (loss) ,4 % Net profit margin 13,3% 10,1% -24,1 % Assets ,3 % Liabilities and provisions ,4 % Long-term liabilities ,7 % Short-term liabilities ,2 % Equity ,2 % ROE 29,0% 27,5% -5,2 % ROA 22,1% 16,6% -24,7 % 5

6 Y2007 financial summary + Revenues increased by 36% + Sales growth on the same stores 12,8% up EBIT grew by 22% Net profit remained on 2006 level Increase of net profit margin by 10,1% Essential growth of sales costs Loss on financial / forex operations 6

7 Sales costs Fixed costs Retail costs difference total retail & wholesale , , ,71 Remuneration , , ,65 National insurance (retail & w holesale) ZUS , , ,77 Representation and promotion expences , , ,00 Amortization , , ,24 Residual costs , , ,27 Other costs , , ,52 Rent&tenancy service, exploatation , , ,50 Remuneration , , ,52 Transport services , , ,10 Other materials , , ,30 Credit card service , , ,87 Other costs , , ,97 difference ZUS % w ages fund , ,74 0,76 ZUS , ,42 0,72 7

8 Rent 18,6 mln mln PLN Rent differences 18,6 discount outlets -0,2 CCC opened in ,3 opened in 2006 (did not operate the w hole year) 4,6 opened before ,0 QUAZI 4,0 BOTI 2,9 average monthly rent + derivative fees ('000 PLN) CCC 23,1 25,1 QUAZI 19,2 22,0 BOTI 7,9 8

9 Remuneration service 8,6 mln Remuneration growth. Fixed cos ts. S ervice difference % Average regular pos ts amount 112,91 182,41 69,50 61,55% Average remuneration 3 818, ,14 120,06 3,14% Wage fund increas e due to: - remuneration increas e ,70 - growth of regular pos ts amount ,76 total ,46 Remuneration growth. Fixed cos ts. S torehous e róŝnica % Average regular pos ts amount 107,05 191,65 84,60 79,03% Average remuneration 2 521, ,95 354,45 14,06% Wage fund increas e due to: - remuneration increas e ,47 - growth of regular pos ts amount ,44 total ,91 Remuneration growth. Total fixed cos ts w mln P LN 8,60 s ervice 3,40 s torehous e 3,40 s taff 0,5 provis ion agreements, s torehous e 1,3 9

10 Remuneration retail 15 mln Remouneration growth - NG2 retail. CCC network cahge % Average regular pos ts amount 1 161, ,66 379,63 32,70% Average remuneration 1 482, ,40 142,20 9,59% - motivation system Wage fund increas e due to: - remuneration increas e ,59 - growth of regular pos ts amount ,66 total ,26 Remouneration growth - RETAIL mln P LN 15,0 CCC remuneration growth 2,0 CCC regular pos ts amount 7,4 QUAZI 2,5 BOTI 3,1 10

11 Financial & forex operations 15,7 mln Result on forex operations Res ult on forex operations in "other operating income/expences " Res ult on forex operations in "financial income/expences " , ,64 Total los s on forex operations ,71 11

12 Consolidated net profit Consolidated net profit (mln PLN) , ,5 18,5 16,6 15, , ,0 8,6 9,1 8,3 10,1 5 2,5 5,4 4,2 5,0 3,1 0 I Q II Q III Q IV Q 12

13 Sales revenues in proprietary chain quarterly (mln) Revenues (mln) Amount of stores 300,0 250, ,0 150,0 100,0 50,0 17, , ,9 37, , ,2 39,2 67, ,2 32,3 53, , , , ,1 126,3 0,0 I Q 2004 II Q 2004 III Q 2004 IV Q 2004 I Q 2005 II Q 2005 III Q 2005 IV Q 2005 I Q 2006 II Q 2006 III Q 2006 IV Q 2006 I Q 2007 II Q 2007 III Q 2007 IV Q

14 Retail sales & sales margin ,8 Retail s ales Reatil gros s s ales margin re tail g ro s s s ale s m arg in (%) P lan Execution CCC 50,38 55,47 QUAZI 40,05 44,28 BOTI 46,02 51, ,49 17,7 7,84 19,3 10,01 CCC Quazi Boti 14

15 Sales on the same stores, like-to to-like comparison 45,0% 40,0% 35,0% 12,8% 30,0% 25,0% 5,8% 20,0% 6,2% 15,0% 29,1% 10,0% 12,0% 17,1% 23,3% 5,0% 5,1% 5,1% 0,0% Representative base 6 stores 15 stores 36 stores 65 stores 98 stores 15

16 NG2 network development CCC store s F Targe t: F BOTI shops own franchise d Eo Y 2009: Targe t: DISTRIBUTION CHANNELS QUAZI butique s Targe t: 100 Cze ch Re p Targe t: ok

17 2007 plan and its accomplishment Opening further 40 proprietary stores in Poland by the EoY2007 / EoY : 47 Opening 10 stores of the new line QUAZI by the EoY2007 / EoY : proprietary & 80 frinchised BOTI shops / EoY : 66 & 69 respectively Opening 2 stores in the Czech Republic by EoY2007 / EoY : 4 Sales increase in the comparable stores by 5% / EoY : 12,8% 17

18 NG2 proprietary stores - CCC EoY 2001 Proprietary stores Area EoY 2002 EoY 2003 EoY EoY 2005 EoY EoY Progno za Proprietary stores Area

19 NG2 proprietary stores Quazi Proprietary stores Area EoY 2006 EoY 2007 Prognoza Proprietary stores Area

20 NG2 proprietary stores Boti Proprietary stores Area EoY 2007 Prognoza Proprietary stores Area

21 Forecast 2007 Consolidated results (PLN mln) 2006 Forecast 2007 Execution Revenues 400,86 540,0 544,5 EBIT 61,99 95,0 75,7 Net profit 53,14 81,0 55,1 Assumptions: opening of 40 branded CCC stores opening of 10 boutiques Quazi opening of 50 proprietary shops and 80 franchised Boti shops growth of sales on the existing stores by 5% 21

22 Forecast accomplishment + Retail gross sales margin 16,4 mln upwards of expectations + Wholesale gross sales margin 5,7 mln higher than assumed Retail sales costs exceeded by 14,9 mln Fixed costs 22,6 mln above assumption Other operating and financial costs 21,3 mln higher that expected 22

23 NG2 Group General Review 23

24 Operating structure of NG2 Group As of Domestic suppliers Foreign suppliers Total amount of 471 stores CCC (179) Quazi (25) Boti (66) Proprietary stores (285) Czechy (15) In-house manufacturing Flexibility of supplying Tax advantages 1 production only for NG2 need NG2 SA Efficient logistics Ordering based on www Final client Franchised stores ( Boti) 24

25 Structure of shareholders In November 2004, NG2 S.A. joined the stock market and with the day of 2 nd December 2004 is quoted at the Warsaw Stock Market The principal shareholder and the founder of NG2 Group is Mr Dariusz Miłek, the President of the Board of Directors Other members of the Management are shareholders, as well Total amount of shares Le szek Ga czore k 11,98% Othe r 30,62% Dariusz Miłe k 55,91% Other ma na ge me nt 2,24% 25

26 Thank you for your attention NG2 S.A. Polkowice, ul. Strefowa Polkowice tel.: (076) Fax: (076) ng2@ng2.pl Adres www: 26