1 fota s.a. presentation to investors gdynia, march 2008

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1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Page 1: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

1

FOTA S.A.

Presentation to Investors

Gdynia, March 2008

Page 2: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

2

Disclaimer

This presentation has been made for informative purposes only. As such it does not constitute

advertising or soliciting of any securities in public trading. The sources of information used

herein are considered by FOTA S.A. to be reliable and accurate, however there is no

guarantee that such sources are exhaustive and reflect the factual condition entirely. This

presentation may contain statements concerning future, which constitute an investment risk or

a source of uncertainty and may differ from actual results. FOTA S.A. shall not be liable for

the effects of any decisions taken based on this study. All liability shall be borne by a person

using this study. This presentation is subject to protection under the Act on copyrights and

related rights. All copying, publishing and distribution requires written consent of FOTA S.A.

Page 3: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

3

Agenda

FOTA Group Profile

FOTA Group’s Market Position

Strategy

Financial Results of Fota Group

Page 4: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

4

FOTA Group Profile

Page 5: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Leading polish distributor of spare parts for passenger cars

and trucks – 10% share in the Polish market

Distribution - full coverage on Polish market

Wide product range – 170 thousand of spare parts from

more than 200 suppliers

Increasing sales of own brand products – KAGER

Leader Service and Leader Service Truck - independent

garage network in Poland

Fota’s team as main success factor: experienced managers

cooperating with young and creative team

Profile of Fota Group

Fota Group

Page 6: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Fota Group

More than 35 years experience on the market

1973 1990 1992 2000 2001 2003 2004 2005 2006 2007

Ford workshop established

Leader Service chain and the Logistics Centre

Leader Service Truck

KAGER brand originates

Fota International

On-line sale launched

First branches

PH Fota set

up to distribute

car parts

Fota goes public

Acquisition of AUTOPRIMA (Czech Company), Expom Kwidzyn and ART.-GUM

FOTA Ukraine

100% 100% 70%

FOTA Czech Republic

FOTA HungaryAUTOPRIMA

/SLOVAKIA/

80%

EXPOM ART GUM

FOTA S.A.

99% 61%

AUTOPRIMA

/CZECH REPUBLIC/

80%

Merger in 1-st half of 2008

Page 7: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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In November 2006 Fota S.A. had its debut on a stock market in

Warsaw

• Rise in prestige and reliability among customers and commercial partners

• 50% funds from the emission – for the working capital of Fota Capital Group

• 50% - for the consolidation of automotive spare parts distribution market in

Poland and in selected countries of Central and Eastern Europe.

GOAL:

Profile of Fota Group

FOTA on the stock market

Page 8: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Distribution Network

101 branches;

8 regional warehouses, 3 warehouses abroad

Modern Logistics Centre in Łódź

– Convenient location in the centre of Poland

– 26 thou. m² area

– 170 thou. items

– IT system for managing dispatches, bar codes and

an automatic sorting plant

– Deliveries 6 x a week at night

– Dispatches of more than 60 thou. parts a day

Gdynia

Łódź

cities with truck selling branches

Best developed distribution network in Poland

Advanced and effective IT system

Page 9: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

9

Logistics Center – planned changes

Logistics

2008 – implementation of LogoMate and new ERP system:

– a joint platform specialized in logistics for the Automotive Aftermarket

-the solution for collaborative planing, forecasting, replenishment

-Automation inner transport systems

Consideration of TecCMI implementation: the solution for integration of supply chain between Fota and suppliers

Page 10: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

10

FOTA Group’s market position

Page 11: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

11

Sales Structure of the Fota Group

84,0%

1,5%

4,0%

1,4%

9,0%

0,1%

UkraineSlovakia within Autoprima Czech RepublicCzech RepublicHungaryOther foreign salesPoland

56%28%

16%

WorkshopsStoresOther

dane za 9 miesięcy 2007 r.

Page 12: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

12

Own Brands - Manufacturing

Car parts of quality comparable to the quality of original parts

22 thou. products

49 product lines

Leading brand of FOTA International companies

14%

86%

Share of Kager brand in FOTA’s sales*

15%

9%

20% 80%

91%

85%

0% 20% 40% 60% 80% 100%

Czech Republic

Hungary

Ukraine

Kager Other

Sales structure – foreign markets

* Data for 1-10.2007

Page 13: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

13

Own Brands - Services

FOTA Technical Academy

training for mechanics within the Leader Service programme

marketing training within customer service

a complex of conference halls, a model Leader Service workshop, state-of-the-art equipment and hotel

facilities

The largest chain of independent

car workshops in Poland

Personal cars

Over 400 workshops

A chain of independent

workshops providing services

to truck fleets

47 workshops

Page 14: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Spare Parts Distribution Market – Growth Potential

Low level of the car market saturation.

The developing consolidation (according to the Company finally there will be 3-4 main players concentrating 50% of the Polish market)

The liberalization of the Polish car parts market due to the Polish accession to the EU

– The possibility of using parts of quality comparable to OEM parts in services and repairs during guarantee periods

– Lifting restrictions on the production of visible spare parts by independent manufacturers (so-called repair clause)

A significant growth of used cars import due to the Polish accession to the EU

The development of sales on foreign markets – a significant share of export sales in the incomes of Inter Cars (approx. 20%) and JC Auto (approx. 40%)

Demographic and economic potential of Ukraine

Foreseen maintenance of the present market growth dynamics

Personal cars per 1000 inhabitants (2004)

Trucks/vans per 1000 inhabitants (2004)

Source: European Motor Vehicle Parc 2004, estimates by ING

Source: European Motor Vehicle Parc 2004, estimates by ING

581 550 509 506 505 492 459 455 439391 390 381 358 327 289

128

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Page 15: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Strategy

Page 16: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Str

ateg

y

Development of the Premium brand

LS and LS Truck network expansion

Strengthening and development of the KAGER brand

Expansion in the CEE region

Strengthening position in the domestic market

High operational efficiency

Strategy

Active consolidation of the market

Our strategy

Page 17: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Competitive Advantage Factors

Domestic market

Scale of operation comparable to market leaders

Distribution network all over Poland

Complete range of products within aftermarket

Workshop orientation – sales of high quality parts

Strong own brand, KAGER, available in Tec-Doc

Excellent organization of logistics:

– the Logistics Centre in Łódź

– 8 regional warehouses

Experienced and qualified management and personnel

Foreign market

Easy implementation of the business model based on the experience of FOTA International

Scale of operation

Offering own brand, KAGER

Page 18: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Acquisition Criteria

Participation of management/key owners of acquired companies in further management

Incentive elements in the structure of consideration for acquired companies and in the

remuneration of management/owners

Opportunities from synergy effects within logistics and a bargaining position towards

suppliers

Seizing key positions on a market segment or entering a product or geographic market with

a higher margin:

– Art. Gum – reaching the second position in tires wholesale in Poland

– Expom Kwidzyn – one of the leaders of alternators and starters regeneration in Poland

– Autoprima – Czech and Slovak markets feature higher margins

Attractive discount in appraisals:

– P/S of acquired companies for 2006 within 0.1 – 0.4

Page 19: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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Summary

One of the largest automotive spare parts distributors in Poland

An active consolidator of the Polish spare parts market: three acquisitions in the 2007

Dynamics of the income on sales regularly exceeds the growth rate of the whole market

Expansion on selected CEE markets

– Export to the Czech, Slovak, Ukrainian and Hungarian markets

– Major acquisitions on the Czech and Slovak markets

Consolidation of acquisitions at the beginning of July 2007

Conducive market conditions due to the Polish accession to the EU and general

macroeconomic conditions on the markets where the Company is active

Page 20: 1 FOTA S.A. Presentation to Investors Gdynia, March 2008

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FOTA S.A.

ul. Stryjska 24

81-506 Gdynia

tel. +48 58 69 99 547

fax. +48 58 69 99 579

www.fota.pl