An Egyptian Exporter Taher G. Gargour Business Development FY 2005 - - PowerPoint PPT Presentation

An Egyptian Exporter

Taher G. Gargour

Business Development FY 2005 results presentation March 2006

Corporate Summary

3

Introduction: An Egyptian exporter

Split of sanitary ware and tiles1 Split of domestic and export1

* All production facilities are controlled by Lecico

Alexandria Khorshid Borg El-Arab Cairo Established 1997 Phases 3&4 expected to be completed end 2006 Sanitary ware capacity 1.2 million pcs 2003 2.0 million pcs 2004 4.0 million pcs end 2007 Borg El-Arab Established 1975 Sanitary ware capacity 2.0 million pcs 2004 2.5 million pcs end 2005 Tiles capacity 9.7 million m2 2002 13.4 million m2 2003 17.0 million m2 2004 21.4 million m2 early 2007 Khorshid Established 1959 Sanitary ware capacity: 600,000 pcs 2004 Tiles capacity 1.1 million m2 2004 Kfarchima Kfarchima Beirut

• Lecico Egypt S.A.E. is a leading sanitary ware producer in

the Middle East and a large tiles producer

• Lecico was founded in 1959 and has been majority owned

by the Gargour family since 1969

• The company has a global competitive advantage making

European quality sanitary ware at Egyptian costs

• The company is a significant exporter with c40% of

Lecico’s sales going into Europe

• Lecico is in the midst of a major capacity expansion which

will boost capacity to over 7m pieces of sanitary wary

• This expansion will make Lecico approximately the sixth

largest sanitary ware producer in the world

• Further tile expansion planned for 2006: size of project,

type of tiles and location of plant under review

Note: (1) 31 December 2005

Egypt (41%) Lebanon (10%) Export (49%) Sanitary ware (60%) Tiles (40%)

Corporate Overview

5

Investment case

Management and brand history

• Brand with over 40 years of history
• Egyptian, Lebanese and European

expatriate management

Regional leadership

• Market leader in production

sanitary ware in Egypt and

Growing exports

• Targeting growth in typically higher

margin exports

• f

Lebanon

Significant cost advantage

• Economies of scale
• Low labour and energy costs
• European quality product

Strong historic growth record

26% Revenue CAGR (2000-2005) 30% Net Profit CAGR

Supplier for key European brands Aggressive expansion program

Tile capacity doubled and sanitary ware capacity grew 40% since 2000 Substantial further capacity expansion underway

Sanitec relationship Strong growth despite slowdown in key markets and drop in profitability in 2005

6

Strong management & over 40 years brand history

Management team

Gilbert Gargour

Chairman and CEO

Colin Sykes

Group CFO

Mohamed Sorour

General Manager Factory Admin

Elie Baroudi

Managing Director Egypt

Georges Ghorayeb

Group Technical Director and Managing Director, Lebanon Factory Managers Elie Youssef (Sanitary) Nabil Nader (Tiles) Production Director B Dalgarno (Sanitary) Production Managers W Gestner (Khorshid) W Hourani (Borg) A Raimondi (Tiles) S Mancini (Fireclay) Legal Counsel S Hamouda Financial Controller M Hassan Financial Controller C A Khalil

1959 1967 1978 1983 1997 1999 2003 2007+

Lecico founded in Lebanon Tile production started Operations established in Egypt Sanitary ware production started Sanitec becomes indirect shareholder in Lecico via CHME Lecico enters into a sourcing agreement with Sanitec Sanitary ware production started in Lebanon Tile production started in Egypt Sanitary ware factory

• pened in Borg El-

Arab (Egypt) Borg El-Arab 2 completed Roll out of European Ceramics (Borg 3 & 4) and tile expansion

Senior management experience: average 16yrs with Lecico and 23yrs industry experience

7

Domestic market leadership

12% 11% 9% 9% 8% 7% 6% 38% Lecico Cleopatra Gravena American Standard Aracemco Pharaohs Duravit National Ceramics

Market leadership in Egypt Market leadership in Lebanon

• Leading sanitary

ware market share

• 8% Lecico domestic

sales volume CAGR (00-04)

• 2.0m Lecico capacity

expansion ongoing

• Leading market

share in sanitary ware

• Branded as

European quality

Sanitary ware market (4.5 million pieces)1 Tile market (80 million m2)1

18% 16% 10% 10% 22% 24% Cleopatra Pharaohs Lecico Al Amir Gemma Other

Sanitary ware market (0.5 million pieces)1

45% 55% Lecico Imports

Tile market (8.5 million m2)1

15% 55% 30% Uniceramic Lecico Imports

• Competitive pricing to

support sanitary ware sales through distributors

• 29% Lecico domestic

sales volume CAGR (00-04)

• Number two market

share in tile sales

• Presence maintained

to complement sanitary ware sales

Note: (1) Management estimates for 2004

8

Growing exports

Growth in group’s exports

Lecico’s total export volumes (sanitary ware) Export breakdown (by volume)

Export focus on Europe

• Sanitary ware export volumes grew at 13% CAGR (2001-2005)
• Volumes fell slightly in 2005 due to market slowdown in UK
• Lecico sells to over 50 countries (inc OEM sales)
• Approximately 30% of exports are for other brands

UK (39%) Sanitec (18%) France (16%) Other Europe (10%) Middle East (3%) South Africa (2%) Sy ria (2%) Saudi Arabia (2%) Other (8%)

1,229 1,240 1,431 1,982 2,389 2,267 46% 41% 42% 50% 56% 59% 1,000 2,000 3,000 4,000 2000 2001 2002 2003 2004 2005 Pieces (000) 0% 20% 40% 60% 80% Exports/total Sanitary ware export volumes Percent of total volume

Europe as percentages of total exports Growth of Lecico brand sanitary ware market share in UK

1,009 1,133 1,622 1,998 1,819 81% 79% 82% 84% 80% 1,000 2,000 3,000 2001 2002 2003 2004 2005 Pieces (000) 0% 20% 40% 60% 80% 100% Europe/exports European sales volumes Europe/total exports (%) 680 650 400 375 470 560 650 200 400 600 800 1999 2000 2001 2002 2003 2004 2005 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Number of pieces sold (000 pcs) UK market share (%)

• UK estimated c8% market share in direct sales
• Around 50% of total exports are to UK (direct and OEM)
• Average of over 80% of exports are to Western Europe
• European export volumes (excluding UK) flat in 2005

9

Significant cost advantage

International cost advantage

Lecico produces sanitary ware at an all-in average cost of US$10.1 / piece

– In Egypt, manufacturing cost averages US$7.0 / piece of sanitary ware – The difference reflects lower production volumes in 2005, accessories added in Europe, depreciation and significantly higher industrial cost in Lebanon – Our information suggest other low cost producers manufacturing cost averages US$10-15 / piece – While European producers average US$25+ / piece depending on their market

Why is Lecico able to produce so cheaply?

– Egypt factors: Low energy costs, low labour cost, low investment costs, low effective taxes – Size factors: Economies of scale, standard global plant size: 1m pieces – Experience: Over 45 years as a company and almost 40 years as a sanitary ware producer

Investment, distribution and overheads benefit from regional economies of scale

– Sanitary ware investment cost approx US$12-15 / piece vs. US$20-30 / piece global standard – Low shipping cost to Europe: US$1 per sanitary ware piece vs approx US$5+ for Asian manufactures

10

Sanitec and other business relationships

Knowledge transfer

• Quality and production control
• Product development
• Personnel secondments/exchanges

Commercial

• Revenue visibility
• Margin protection
• Lecico manufactures products under

Sanitec and other brands

Expansion

• Design facilities
• Product expansion
• Capacity expansion
• Purchased in 1997
• Board representation

Indirect equity stake

• CMS provides technical consultancy

services to Lecico

• CMS is paid 2% of annual sales
• CMS is owned by Sanitec and Intage

CMS management agreement

EQT acquisition of Sanitec good news for Lecico: Continued Sanitec focus on outsourcing production likely

Growth strategy

12

Long-term sanitary ware growth strategy

• Aim to increase market growth

− UK, Ireland

• Increase presence opportunistically

− France, South Africa Expand production capacity

• Sanitary ware capacity expansion: from 4.6m pcs in 2004 to an 7.1m pcs by end 2007
• Expanding casting capacity to handle greater proportion of WCs in either plant
• Adding capacity in tiles (+4.4m sqm or 24% increase) and expanding fired clay capacity

Lower production costs while keeping European quality

• Constructing in-house production facility for key raw material for tiles (frit plant)
• Local sourcing of raw materials without compromising quality
• Cost savings through improvements in manufacturing efficiency

Expand regional and international exports

• Build on leading domestic positions and regional brand history to

expand in the Middle East

• Potential future markets

− Germany, Italy, Algeria, Saudi Arabia, Iraq, Syria

13

2005: A challenging year

A confluence of negative events hurt performance in 2005

• Sharp slowdown in UK market

– Sanitary ware market size down 20-30% as part of overall slow down in consumer spending

– Impact on Lecico: Over 50% of Lecico exports go to UK market (direct and OEM combined). In addition to lower sales volumes as result of UK weakness, most new sales generated in markets with lower prices and margins than the UK

• Egyptian pound appreciation

– Egyptian pound appreciated by 6.8% against the sterling and euro (2005 average vs. 2004 average)

– Impact on Lecico: Export prices, revenues and margins squeezed. FX losses incurred on cash and credit – Bad news: Exchange rates have worsened sharply in 4Q, Euro and Sterling down by c 16% year-on-year – Bad news: Approximately 70% of Lecico exports (35% of total sales) are in Euro or Sterling

• Sluggish demand in Egypt and Lebanon

– Political instability in Lebanon and inflationary pressure in Egypt depress local demand

– Impact on Lecico: Egyptian sanitary ware sales down 12% YTD, Lebanese sanitary ware sales down 15% YTD – Good news: Strong steel and cement consumption numbers in Egypt may be lead indicator of stronger demand growth – Good news: Market for tiles in both countries remains fairly buoyant on expanding usage

14

Difficult environment likely to continue in 2006…

Exchange rate pressure and sluggish markets to continue in 2006

• Outlook for UK market growth remains negative

– Government cuts 2006 growth forecast by 50bps, brokers are forecasting record lows in real household consumption growth (Lehman Brothers, Merrill Lynch) – UK market for sanitary ware may come under further pressure in 2006 – 22% of Lecico sales (9m 2005) into the UK market (all Lecico-branded or OEM sanitary ware)

• Too early to call recovery in Egyptian market

– Despite positive indicators in steel, cement and real estate sanitary ware demand has been weak in 2005 – While the hope is that these are lead indicators for our industry in 2006 and February and early March were relatively strong year-on-year, it is too early to call a recovery in the Egyptian market – 13% of Lecico sales value comes from Egyptian sanitary ware sales

• Further currency squeeze on operations in 2006

– Euro and Sterling vs. Egyptian pound rates are down 20.5% and 13.2% respectively Y-o-Y in the fourth quarter – Assuming these rates hold, consolidated 2006 sales will likely be over 5% lower on price impact alone – Over 35% of Lecico sales is either Euro or Sterling denominated

15

…but new sales efforts should still deliver growth

Lecico is aggressively pursuing new opportunities to return to growth

• Building a presence in new markets

– Recently hired sales representatives for Germany and Latin Europe (France, Italy, Spain) to build/expand direct sales in those markets (first sales expected 2006) – Exploring new OEM partnerships for Europe and elsewhere – Setting up trading joint ventures with in Algeria, Syria and Saudi Arabia as regional distribution hubs (2006) – Goal to expand Middle Eastern and African presence with further possible trading JVs in Iraq and Nigeria (2007)

• Increasing penetration in existing sanitary ware markets

– New sets and image campaign in Egypt to raise profile and expand high-end sales (ongoing) – Creating unbranded special set to compete with dumped Chinese product in the UK (early 2006) – Exploring possibility of breaking into UK DIY market with unbranded new models (late 2006 or 2007) – Expanding DIY customer base in France (ongoing)

• Expanding product range and capacities

– Fine fire clay capacity to be increased from c60k pieces to 200-250k pieces (ongoing through 2007) – Expanding tile capacity by 4.4m sqm (or 24% capacity growth) over the coming 10-12 months (operational in 2007) – Completing roll-out of Borg 3 & 4 as needed for sales growth in sanitary ware (expected to be operational by mid-2007)

16

Outlook for 2006

2006: Expected volume growth but continued FX and business mix pressure

• Expecting healthy increase in volumes of both sanitary ware and tiles in the second half

– Initial indicators remain lacklustre for 2006, but entry into new markets, improved market penetration and a hoped-for recovery in Egypt should drive healthy (high single or low double digit) growth in sanitary ware volumes later in the year – Expansion of tile capacity towards the end of 2006 should see some volume-led growth towards the year-end

• Continued strength of Egyptian pound could negatively impact revenue growth and margins

– Further 4Q 2005 strengthening of the EGP could (if the rates hold) reduce consolidated 2006 revenues by over 5% lower on price impact alone – Business mix will also be a factor with new export sales likely at below average prices and margins

• Lecico may end up working very hard operationally to stand still in P&L terms

– Double digit volume growth may translate into single digit revenue growth due to currency and business mix effects – Gross margins likely to be squeezed by currency and business mix effect – Operating expenses likely to grow given focus on expanding market share and penetrating new markets – Operating profit likely to be flat, or only marginally changed, despite strong volume growth – Net profit to benefit from lack of FX losses (compared to previous year) due to balance sheet hedging

Financial overview

18

Profit and loss

Net sales Cost of sales breakdown (9m 2005)

Raw materials (38%) Other materials (16%) Energy (11%) Salaries and wages (12%) Depreciation (6%) Other costs (16%)

697 382 265 202 559 652 49.6% 44.1% 36.3% 39.1% 43.9% 49.2% 200 400 600 800 1,000 2000 2001 2002 2003 2004 2005 LE million 0% 10% 20% 30% 40% 50% 60% Exports (%)

Net Profit (1) EBIT

140 188 72 47 31 108 21.4% 26.9% 19.2% 18.9% 17.9% 15.5% 50 100 150 200 250 2000 2001 2002 2003 2004 2005 LE million 0% 5% 10% 15% 20% 25% 30% Margin (%) 136 44 28 16 84 89 19.5% 15.0% 11.6% 10.7% 7.9% 13.6% 50 100 150 2000 2001 2002 2003 2004 2005 LE million 0% 5% 10% 15% 20% Margin (%)

(1) 2005 net profit reduced by LE 20.0 million FX revaluation loss

19

Revenues shift of towards tiles and Middle East

Segmental sales breakdown (2004 vs. 2005) Sanitary ware export volumes by geography Sanitary ware sales volume by geography

2005 Sanitary ware (60%) Tile (40%) 2004 Sanitary ware (67%) Tile (33%) 2004 Europe (84%) Middle East (10%) Africa & other (7%) 2005 Egypt (36%) Lebanon (5%) Export (59%) 2005 Europe (80%) Middle East (11%) Africa & other (9%) 2004 Egypt (38%) Lebanon (6%) Export (56%)

Segmental gross profit (2004 vs. 2005) Tile sales volume by geography

2004 Egypt (83%) Lebanon (6%) Export (10%) 2004 Sanitary ware (78%) Tile (22%) 2005 Sanitary ware (68%) Tile (32%) 2005 Egypt (77%) Lebanon (5%) Export (18%)

20

Margin growth switch from sanitary ware to tiles

Sanitary ware – sales volumes and revenue Sanitary ware – gross profit and margin Sanitary ware – selling price and cost per piece

389 469 369 249 178 149 3.9 4.3 4.0 3.4 2.7 2.4 100 200 300 400 500 600 2000 2001 2002 2003 2004 2005 Revenues (LE m) 0.0 1.0 2.0 3.0 4.0 5.0 Volumes (pcs m) Net sales revenue Total sales volume 164 234 168 110 83 63 42% 50% 46% 44% 46% 42% 50 100 150 200 250 300 350 2000 2001 2002 2003 2004 2005 Gross profit (LE m) 20% 30% 40% 50% 60% Gross margin (%) Gross profit Gross margin (%) 101 110 93 74 65 62 58 55 51 41 35 36 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 LE per piece Av price/piece Av cost/piece

Tiles – sales volumes and revenues Tiles – selling price and cost per sqm Tiles – gross profit and margin

6 18 39 54 66 78 11% 21% 30% 28% 29% 30% 20 40 60 80 100 2000 2001 2002 2003 2004 2005 Gross profit (LE m) 0% 5% 10% 15% 20% 25% 30% 35% Gross margin (%) Gross profit Gross margin (%) 228 191 133 87 52 263 15.3 14.6 10.8 9.2 4.8 17.7 50 100 150 200 250 300 2000 2001 2002 2003 2004 2005 Revenues (LE m) 0.0 5.0 10.0 15.0 20.0 Volumes (sqm m) Net sales revenue Total sales volume 15 15 13 12 9 11 10 11 9 9 8 10 5 10 15 20 2000 2001 2002 2003 2004 2005 LE per sqm Av price/sqm Av cost/sqm

21

Balance sheet and cash flow

Working capital

242 209 192 217 266 204 110 78 96 129 208 216 99 126 103 99 126 98 159 73 105 99 226 271 50 100 150 200 250 300 2000 2001 2002 2003 2004 2005 Days Inventory days (Inventory/cost of sales) Receivables days (Receivables/net sales) Payables days (Payables/Cost of sales) Net working capital days

Returns and leverage Capital expenditures Project Investment cost (LE m) 2006 2007 Khorshid frit plant 5.0 3.5 Fire Clay capacity expansion 28.5 0.0 Tile expansion and upgrade plans 27.0 13.0 Borg El-Arab 3 & 4 11.5 35.5 General maintenance work 30.0 30.0 Total planned specific project capex 102.0 82.0

*2005 numbers annualized with 1Q FX loss added back 14% 20% 26% 18% 13% 9% 14% 26% 19% 15% 11% 9% 0.2 0.9 1.0 0.8 0.6

• 0.1

0% 10% 20% 30% 40% 50% 60% 70% 2000 2001 2002 2003 2004 2005

• 1.0
• 0.5

0.0 0.5 1.0 1.5 Return on equity ROIC Net debt/equity

22

Summary financials (1)

Sanitary ware segmental analysis % % (LE m) 2005 2004 05/04 2005 2004 05/04 Sanitary ware volumes (000 pcs) Egypt (000 pcs) 284 351 81% 1,383 1,600 86% Lebanon (000 pcs) 55 90 60% 211 276 77% Export (000 pcs) 542 556 97% 2,267 2,389 95% Total sanitary ware volumes (000 pcs) 880 997 88% 3,861 4,265 91% Exports/total sales volume (%) 61.5% 55.8% 5.7% 58.7% 56.0% 2.7% Sanitary ware revenue 85.7 120.1 71% 389.0 469.0 83% Average selling price (LE/pc) 97 120 81% 101 110 92% Average cost per piece (LE/pc) 60 61 99% 58 55 106% Sanitary ware cost of sales (52.9) (60.5) 88% (224.7) (234.6) 96% Sanitary ware gross profit 32.8 59.6 55% 164.3 234.4 70% Sanitary ware gross profit margin (%) 38.2% 49.6% (11.4%) 42.2% 50.0% (7.7%) Tile segmental analysis % % (LE m) 2005 2004 05/04 2005 2004 05/04 Tile volumes (000 sqm) Egypt (000 sqm) 3,390 3,190 106% 13,595 12,788 106% Lebanon (000 sqm) 193 213 91% 948 962 99% Export (000 sqm) 843 405 208% 3,155 1,584 199% Total tile volumes (000 sqm) 4,427 3,807 116% 17,698 15,334 115% Exports/total sales volume (%) 19.0% 10.6% 8.4% 17.8% 10.3% 7.5% Tile revenue 65.9 60.7 109% 263.4 227.8 116% Average selling price (LE/sqm) 15 16 93% 15 15 100% Average cost per sqm (LE/sqm) 11 12 90% 10 11 99% Tile cost of sales (47.5) (45.6) 104% (185.3) (162.1) 114% Tile gross profit 18.4 15.1 122% 78.1 65.7 119% Tile gross profit margin (%) 27.9% 24.9% 3.0% 29.6% 28.9% 0.8% 4Q FY 4Q FY

23

Summary financials (2)

Income statement % % (LE m) 2005 2004 05/04 2005 2004 05/04 Net sales 151.7 180.8 84% 652.4 696.8 94% Cost of sales (100.5) (106.0) 95% (410.0) (396.7) 103% Gross profit 51.2 74.7 69% 242.4 300.1 81% Gross margin (%) 33.8% 41.3% (7.6%) 37.2% 43.1% (5.9%) Distribution expenses (10.6) (18.5) 57% (44.4) (50.2) 88% Administrative expenses (16.1) (14.0) 115% (62.4) (63.6) 98% Other Operating income 0.6 6.8 9% 4.3 10.7 40% Other Operating expenses 0.1 (9.2)

• (0.2)

(9.4) 2% Operating profit (EBIT) 25.2 39.8 63% 139.6 187.6 74% Operating (EBIT) margin (%) 16.6% 22.0% (5.4%) 21.4% 26.9% (5.5%) Investment revenues 0.0 (0.3)

• 0.0

0.3

• Gain on sale of

investment 0.1 0.1

• 0.1

0.3

• Interest revenues

5.3 1.5 361% 16.0 4.0 398% Financing expenses (7.5) (11.3) 66% (32.5) (39.2) 83% Foreign currencies exchange differences (2.5) 0.3

• (20.1)

1.7

• Employee profit share

(7.1) (7.3) (7.1) (7.3) 97% Profits before tax and minority (PBTM) 13.5 22.8 59% 95.9 147.4 65% PBTM margin (%) 8.9% 12.6% (3.7%) 14.7% 21.2% (6.5%) Income tax 0.8 1.0 72% (3.5) (10.9) 33% Deferred tax (3.5) 0.0

• (3.5)

0.0

• Profit after Tax

10.7 23.8 45% 88.9 136.5 65% Minority interest 0.4 4.8 9% (0.1) (0.4) 16% Net Profit 11.2 28.6 39% 88.8 136.1 65% Net profit margin (%) 7.4% 15.8% (8.5%) 13.6% 19.5% (5.9%) 4Q FY

24

Summary financials (3)

31-Dec-05 31-Dec-04 9m 05/FY04 (%) Banks overdraft 416.8 113.4 368% Current portion of long-term liabilities 28.1 29.2 96% Trade and notes payable 55.6 62.4 89% Other current payable 56.1 75.0 75% Related parties - credit balances 9.1 11.5 79% Provisions 7.4 7.4 100% Total current liabilities 573.0 298.8 192% Long-term loans 49.1 83.3 59% Other long-term liabilities 11.6 13.9 83% Provisions 6.3 7.1

• Deferred tax

3.5 0.0

• Total non-current liabilities

70.5 104.3 68% Total liabilities 643.5 403.1 160% Minority interest 5.2 5.2 99% Issued capital 100.0 100.0 100% Treasury stock (3.7) 0.0

• Reserves

368.1 372.3 99% Retained earnings 162.7 82.8 197% Net profit for the period 88.8 136.1 65% Total equity 716.0 691.3 104% Total equity, minorities and liabilities 1,364.7 1,099.6 124% Balance Sheet (LE m) 31-Dec-05 31-Dec-04 9m 05/FY04 (%) Cash, equivalents and short-term investments 319.4 264.2 121% Current investment 0.0 0.0

• Inventory

271.4 226.8 120% Receivables 197.3 149.0 132% Related parties -debit balances 30.2 42.8 71% Total current assets 818.3 682.8 120% Net fixed assets 409.2 338.8 121% Intangible assets 16.1 16.0 100% Prepaid long-term rent 0.7 0.8 86% Projects in progress 112.7 53.3 212% Available for sale investments 5.5 4.7 117% Long-term notes receivable 2.1 3.2 66% Total non-current assets 546.3 416.7 131% Total assets 1,364.7 1,099.6 124%

Share performance and data

26

Share structure and history

• Lecico listed in November 2004 and is currently valued at a market cap
• f US$ 200 million with a 53% free float

– Trading history: GDR trades an average of US$ 0.20 million in trading a day and trades on 40% of market trading days (Feb 2005-Feb 2006) – Lack of local liquidity and difficult operating year have led to shrinking liquidity – Lecico hopes to address this by improving local liquidity in late 2006 – Share multiples: Lecico now trades on 2005 multiples of: – 12.9x PER, 5.2% Div Yield, 1.6x P/B and 7.3x EV/EBITDA – Vs. Egypt market: 15.8x 05 PER (13.4x06) and 9.6x 05 EV/EBITDA (7.8x 05)

– Market figures based on EFG-Hermes Egyptian coverage universe as of 16/03/06 Shareholding structure

Sanitec 15% GDR float 43% Local float 9% Intage / Gargour 32%

Share liquidity overview (GDR) Share liquidity overview (Local) GDR and Local share price

100 200 300 400 500 600 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 0% 10% 20% 30% 40% 50% 60% 70% 80% Av daily value (USD 000) Days traded (%) 5 10 15 20 25 30 35 40 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 0% 5% 10% 15% 20% 25% 30% 35% 40% Av daily value (USD 000) Days traded (%) 5 10 15 20 25 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Nov-05 Dec-05 Jan-06 Feb-06 20 40 60 80 100 120 140 160 GDR price Local price