Presentation to investors

Transcription

1 Presentation to investors NG2 Group 4Q

2 Presentation plan Introduction Finances Realization of goals Plans & forecast 2007 General review of NG2 Group NG2 operating structure Sales structure distribution chain Structure of shareholders 2

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

4 Finances 4Q2006 4Q2005 `000 PLN 4Q2006 `000 PLN Change Revenues ,4 % Profit (loss) on sales ,5 % Gross margin on sales 45,9% 46,7% 1,7 % Selling costs ,5 % General administrative costs ,7 % EBIT ,4 % Pre-tax profit (loss) ,1 % Net profit (loss) ,0 % Net profit margin 17,1% 13,1% -23,4 % Assets ,1 % Liabilities and provisions ,7 % Long-term liabilities ,3 % Short-term liabilities ,5 % Equity ,7 % ROE 10,0% 8,7% -13,5 % ROA 8,3% 6,6% -19,7 % 4

5 Finances 4Q2006 accrued 4Q2005 `000 PLN 4Q2006 `000 PLN Change Revenues ,1 % Profit (loss) on sales ,0 % Gross margin on sales 44,0% 45,4% 3,2 % Selling costs ,2 % General administrative costs ,7 % EBIT ,0 % Pre-tax profit (loss) ,4 % Net profit (loss) ,2 % Net profit margin 13,2% 13,3% 0,8 % Assets ,1 % Liabilities and provisions ,7 % Long-term liabilities ,3 % Short-term liabilities ,5 % Equity ,7 % ROE 26,0% 29,0% 11,5 % ROA 21,4% 22,2% 3,5 % 5

6 We are effective 4Q2006 Revenues increased by 21 % EBIT grew by 13 % Net profit 21 % higher Sales growth on the same stores 5,8 % up High level of net profit margin 6

7 Plans for accomplishment Opening further 40 proprietary stores in Poland by the EoY2006 / 27 opened Launching new distribution channel 15 stores by EoY2006 / 14 opened Opening 10 stores in the Czech Republic by EoY2006 / 2 opened Introducing new motivative remunerating systems in our retail chain Sales increase in the comparable stores by 5% / Eo4Q: 5,8% 7

8 NG2 stores openings in 2006 CCC stores Quazi boutiques No CITY S HOPPING CENTRE M2 OPENING DATE No CITY S HOPPING CENTRE M2 OPENING DATE 1 Toruń Wars zawa CH WILEŃS KA Białys tok Katowice 3 S tawy Kalis z Tes co P oznań CH. AUCHAN Łowicz Galeria Łowicka Janki CH. JANKI Os trołęka P oznań CH. AUCHAN Radoms ko Gliwice ARENA lokal B S zczytno S zczecin CH. S TER Geant Łódź Manufaktura Legnica Galeria P ias tów Mikołów Galeria Handlowa P ik S os nowiec CH. AUCHAN Wars zawa CH. King Cros s P ias eczno CH. AUCHAN Wrocław CH. BOREK Łódź P as aż Łodzki Os tróda Gdynia CH. BATORY Lublin Galeria Orkana Grudziądz rrefour Galeria Grudziądz S os nowiec CH. AUCHAN Wrocław CH. KORONA Radom CH. E' LECLERC Katowice Gdynia CH. BATORY Legionowo DH. MAXIM Gliwice Tomas zów Mazowiecki ARENA Mińs k Mazowiecki Gdańs k DH. OLIMP CH. AUCHAN Grudziądz rrefour Galeria Grudziądz Branded shops Boti (franchised) 24 Wrocław CH. KORONA OPENING No CITY S HOPPING CENTRE M2 25 P uławy Galeria Zielona DATE 26 Rybnik Carrefour Galeria Ś ląs ka Bogatynia CH. TES CO Bydgos zcz Carrefour Galeria Glinki Koś cian CH. TES CO

9 Consolidated net profit consolidated net profit (mln PLN) 25 23, ,9 16,6 15, ,8 29,9% 15 13,2 16,6 37,9% 30 37,2 10 8,6 9,1 10, ,2 5 2,5 5,4 4,2 5,0 3, ,1 48,8% 10,6 0 I Q II Q III Q IV Q

10 Average daily sales comparing to number of stores 6,00 5,00 1H2006 2H stores practically did not contribute to sales in , , ,00 Number of stores 4,00 3,00 2,00 2,00 2,00 3,00 2,00 3,00 3, , , , ,00 Average daily sales in PLN 1,00 1,00 1,00 1,00 1,00 1, ,00 0,00 January February March April May June July August September October November December growth of number of stores Average daily gross sales 0,00 10

11 Average daily sales per outlet Average daily sales per store in retail gross prices Year Month Av e ra g e g ro s s s a le s / s to re Av e ra g e g ro s s s a le s / s to re Av e ra g e g ro s s s a le s / s to re January 3 096, , ,44 February 3 871, , ,56 March 8 970, , ,53 April , , ,19 May 7 739, , ,58 June 6 989, , ,60 July 5 080, , ,68 August 5 021, , ,51 September 6 825, , ,58 October 9 784, , ,72 November 9 490, , ,33 December 6 002, , ,42 Average in , , ,68 * Average daily sales per store = monthly gross sales / w orking days amount 11

12 Average daily sales per store in XI i XII 2006 Average daily sales per outlet in gross retail prices attained in Year Quantitative change Month/Day Av e ra g e g ro s s s a le s / s to re Av e ra g e g ro s s s a le s / s to re November , , Novem ber , , ,11 Novem ber , , ,57 Decem ber , , ,94 Decem ber , , ,13 Decem ber , ,47-756,43 Daily average in , , ,64 * Av erage daily sales per store = monthly gross sales / working day s amount Loss of sales due to no winter season in Poland 250 stores x 50 days x 2172 zł = 27 mln zł 12

13 Average daily sales per store Average daily s ales per outlet in gros s retail prices attained in in PLN , , ,00 PLN , , , , , , ,00 November 1-10 November November December 1-10 December December

14 Sales revenues in the proprietary chain Sales revenues in quarterly (mln PLN) Sales (mln) Number of stores 140,0 120,0 100,0 80,0 60,0 40,0 20,0 17, , , % 37, , , , % 67, , , , % 82, ,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

15 Sales on the same outlets month-on on-month comparison Sale s o n the s ame s to re s ,0% 30,0% 25,0% 5,8% 20,0% 6,2% 15,0% 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 15

16 Sales dynamics at the retail chain in comparable outlets Months 4Q2006 Accrued January 19,38% 19,38% February 6,34% 12,10% March -19,45% -4,91% April 14,93% 4,24% May 10,85% 6,31% June 15,51% 8,04% July -1,11% 6,77% August 9,28% 6,93% September 14,50% 7,57% October 12,72% 8,29% November 5,72% 7,91% December -15,00% 5,78% 2007 January 1,61% 1,61% February* 11,18% 5,65% * as of

17 Fixed costs Ave ra ge c os t , , ,03 Average s ales margin 42,8 49,9 51,9 Required s ales Average s ales (execution) Average area of stores opened before ,08 Average area of stores opened in ,22 Average area of stores opened in ,52 Average area of stores w orking in the 4Q ,92 Average area of stores w orking in the 4Q ,74 change % 4Q 2005/2006 2, average cost of rent , ,12 change % 21,70 17

18 Forecast 2007 Consolidated (PLN mln) 2007 Forecast 2007 Change Revenues 400,86 540,0 +34,7 % EBIT 61,99 95,0 +53,2 % Net profit 53,14 81,0 +52,4 % 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% 18

19 Retail chain development CCC store s Targe t: ok F Brande d shops BOTI own franchise d Targe t 2009: DISTRIBUTION CHANNELS QUAZI botique s Targe t: 60 Cze ch Re p Targe t: ok

20 NG2 stores signed agreements: : Y2007 CCC (40) proprietary: 31 franchised: 9 BOTI (93) proprietary: 45 franchised: 48 QUAZI proprietary: 11 20

21 BOTI efective moderate price widely available 21

22 NG2 Group General Review 22

23 Operating structure of NG2 Group As of outlets Domestic suppliers Foreign suppliers Quazi (14) Boti (2F) Czech Rep. (11) Proprietory stores (160) In-house manufacturing Flexibility of supplying Tax advantages 1 productio n only for NG2 need NG2 SA Efficient logistics Ordering based on www Franchise stores (120+2Boti) Partner stores (13) (XII 2005: 45) Final client 23

24 Distribution chain franchise & partner stores 135 shops: 120 franchised shops, 13 partner shops, slightly smaller average shop area (appr.190 m 2 ) + 2 franchised Boti Retail margin covers franchiser s all costs (incl. lease, most of quality claims) Favourable for NG2 franchise agreements: Sales of NG2 products exclusively, Franchisers loyalty level very high: Long-standing business relations NG2 leases directly 50 out of 135 locations (mainly in shopping centres), which generated over 50 % sales of franchised network (lease costs reimbursed with 2% margin) Number of stores Number of franchised & partner locations Optimising of franchised network

25 Distribution chain proprietary stores 135 proprietary stores of average area about 350 m 2 14 boutiques with new brand QUAZI Established on leased locations Generating average retail margin of 52.1% Amount of stores , Proprietory stores in Poland ,3 22, , , Amount of stores Trade area '000 m Trade area '000 m2 Retail sales revenues (%) to total sales revenues 100% 80% 60% 40% 20% 0% 45,34% 400,86 59,98% 98,73% 93,04% 73,02% 36,20% 343,72 266,1 278,57 268,67 210,06 54,66% 63,80% 40,02% 26,98% 1,27% 6,96% Franchise outlets (including partner stores) Proprietory chain Total sales revenues

26 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 sze k Ga czorek ,06% Dariusz Miłek ,89% Free float 22,81% Other Members of Management 2,24% 26

27 Thank you for your attention NG2 S.A. Polkowice, ul. Strefowa Polkowice tel.: (076) Fax: (076) ng2@ng2.pl www: 27