Corporate Summary Introduction: An Egyptian exporter Lecico Egypt - - PowerPoint PPT Presentation

Corporate Summary

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Introduction: An Egyptian exporter

Split of sanitary ware and tiles1 Split of domestic and export1

* All production facilities are owned and controlled by Lecico

Alexandria Khorshid Borg El-Arab Cairo Established 1997 Sanitary ware capacity 2.0 million pcs 2005 4.4 million pcs end 2007 Tiles capacity 6.4 million m2 mid – 2011 12.8 million m2 mid – 2013 Brassware capacity 0.3 million pcs mid – 2010 Borg El-Arab Established 1975 Sanitary ware capacity 2.5 million pcs 2005 1.8 million pcs (inc FC) end 2008 Tiles capacity 17.0 million m2 2005 12.0 million m2 2016 Khorshid Established 1959 Sanitary ware capacity: 30,000 pcs 2018 Kfarchima Kfarchima Beirut

• Lecico Egypt S.A.E. was founded in 1959 and has been majority
• wned by the Gargour family since 1969
• The company has a global competitive advantage making European

quality sanitary ware at Egyptian costs

• c45% of Lecico’s sanitary ware sales volume is exported to Europe
• Lecico finished expansions in sanitary ware in 2007 which boosted

capacity to 6.2m pieces of sanitary ware and fired clay

• In Summer 2010, Lecico began brassware production with a 300,000

piece per annum capacity factory

• In 2011 Lecico opened a new tile factory in Borg El Arab which

reached 12.8m sqm capacity in 2013

• In 2016, Lecico took the step to reduce production capacities in

Egyptian tiles and Lebanese sanitary ware and to stop tile production in Lebanon to match demand

• In 2018, Lecico began restructuring Lebanon. Reducing capacity to

30k pieces per annum maximum.

Note: (1) 1H 2019

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A major sanitary ware exporter

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OEM pedigree and history

• Over 20 years of OEM experience

with largest brands in Europe

• 22% of SW exports to OEM brands

An export led sanitary ware business

Large and independent

• The largest sanware factory in

Europe, Middle East and Africa

• Independent from all major brands

Growth is coming from sanware exports

Sanware exports grew at a 27% CAGR (2014-2018)

• Vs. 14% CAGR

for rest of revenue

Experience and quality

• Over 30 years of exports to Europe
• Certified in all major markets
• Claims less than 0.1% of exports

Significant cost advantage

• USD 13.50/piece cost (60% of peers)
• c USD 1.50/piece shipping to Europe

Supplier for key European brands Export-led growth A unique position in supply to Europe

These factors put us in a unique position to supply both other manufactures, buying groups and own brand sales into developed markets

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Significant cost advantage

International cost advantage

Lecico produces sanitary ware at an all-in average cost of US$13.50/piece (FY 2018)

– In Egypt (without costs of subsidiaries/consolidation) manufacturing cost averages US$10.70/piece of sanware (FY 2018) – Our information suggests other low cost producers’ manufacturing cost averages US$15-30/piece – While European producers average US$30+/piece depending on their market

Why is Lecico able to produce so competitively?

– Egypt: Reasonable energy costs, low labour cost, low investment costs – Size: Economies of scale, standard global plant size: 1m pieces – Experience: Over 50 years manufacturing experience – Efficiency: Production per employee is over twice that of our local competitors

Investment, distribution and overheads benefit from regional economies of scale

– Sanitary ware investment cost approx. US$30-40/piece vs. US$35-55/piece global standard – Low shipping cost to Europe: US$1.50 per sanitary ware piece vs. approx. US$6+ for Asian manufactures

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• Increase own brand and white label

− UK, Germany, France, South Africa

Long-term commercial strategy

Build multi-brand and service options solutions for customers

• Local service options in key markets (stock, delivery, tailor-made NPD)
• International manufacturing options: direct container delivery at competitive pricing
• Dual brand + strategy: European brands (Sarreguemines), Commercial brand (Lecico) and OEM

Commercial strategy: Offer more for less

• Strategy based on giving all the benefits of European supplier at best prices
• Consistent and dependable world-class quality, service, manufacturing and design
• Advantages over European peers: Greater flexibility as a partner at better prices

Expand in Developed Markets

• New and expanded OEM contracts

− Expected growth for OEM customers in Europe is an additional (over 2019) 400k+ pieces by 2021 − New OEM customers in the US have been signed and new products are under development. Expected to add circa 200k+ pieces to annual volumes by 2021

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A major sanitary ware exporter to Europe

Growth in group’s exports Export focus on Europe

• Sanware exports grew sharply in 2017 and 2018…
• …but dropping in 2019 due to OEM customer issues in Europe
• Exports to Europe slumped from a record in 2018 due to OEM

weakness

• Growth forecasted resume in 2020

Lecico’s total export volumes (sanitary ware) Egypt’s leading sanitary ware exporter Europe as percentages of total exports Growth of Lecico brand sanitary ware market share in UK

• Lecico exports over 75% of its sanitary ware sales value

and over 65% of volume vs. 20% for local peers (FY18)

• Lecico sells to over 50 countries (including OEM sales)
• Approximately 35% of exports (22% of sanitary ware

sales volumes) are for other brands

• Expecting exports proportion of sales volume and value
• f sanitary ware exports to rise in 2020
• UK estimated c15% market share in Lecico-branded and white

label sales in the UK

• In addition Lecico does around 1% further sales in OEM

Challenges since 2014

Sharp cost inflation began in 2014…

• Since July 2014, the government has pushed through a series of significant cost increases on

energy which have continued on an annual basis.

• The impact of these increases is approximately 165% increase in annual total costs or LE 2.3bn

– About 20x historical annual profit before increases started

• These increases led to significant inflation (compounded by currency) across the board in Egypt

including labour costs (c20% of COGs).

– Headline inflation in Egypt for 2014-2018 averages of 15% per year

• The latest increases were done at the end of June 2019

– 23% increase in diesel and other petrols – 10% increase in electricity

• We anticipate 1-2 more years of hikes in electricity and petrol

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Item Increase since 2014 Impact Natural Gas 455% from an average LE/mbtu of LE 17.4 to LE 96.7 Approximately 22% of Cost of Goods Sold Electricity 404% from LE/KwH of LE 0.25 to LE 1.26 Approximately 6% of Cost of Goods Sold Diesel Petrol 514% from LE/ltr of LE 1.10 to LE 6.75 All goods, materials and personnel transport affected

..met collapse in regional markets and over-capacity

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• Consumer demand in Egypt squeezed since 2H 14

– Consumer inflation squeezed spending on tiles and sanitary ware from 2H 2014 onwards with sales volumes in Egypt down every year since 2014 – Added competition particularly in tiles and sluggish economy

• Exports to Libya also limited and fragile

– The Middle East in general and Libya in particular have been sharply affected by regional instability – Between 2014 and 2016, exports to the region fell 60% in absolute terms and from 18% of total revenue in 2014 to 7% in 2016 – Combined with slowing sales to Egypt this creates an even greater gap between production and sales capability for Lecico and peers particularly in tiles which were primarily a domestic and regional export business

• Egyptian market facing surplus capacity of around 30% in tiles

– Informal market data suggests that installed tile capacity in Egypt reached 490 million square meters per day while actual production is around 340 million square meters

• Increased price competition as manufacturers fight for market share

– Price competition and aggressive bargaining to shore up market share have been common since 2015, forcing Lecico to reduce prices in tiles from 2014 through 2017

Gains of floatation eroded by high inflation

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• LE floatation in 11/2016 led to a spike in sanitary ware margins and a return to profitability

– Pound went from LE 8 to the dollar to LE 17.5. Increasing export prices by 100% and leading to a spike in local prices – Local competition – though fierce – in tiles began to pass on cost inflation from the currency and subsequent government- led cost hikes allowing Lecico to break from cycle of price reduction – Sanitary ware market in Egypt also becoming accustomed to large price increases – Since approximately 50% of production cost is hard-currency linked, this devaluation was only partially turned into profits

• Margins still under pressure from cost inflation…

– After a spike in margins in 1Q 2017 following the devaluation, Lecico’s margin has come under pressure by the significant inflation in Egypt in 2017 and 2018 (over 45% cumulative inflation) – This was compounded by a sharp increase in interest rates in Egypt to offset inflation which saw the cost of debt in Egypt go from 12% to 19%

• …and currency appreciation, especially from exports

– Since the currency has been stable since November 2016, cost inflation has been particularly negative on exports where competition is global and price increases of 3-5% are considered aggressive – This has been compounded since 2H 2018 by a strengthening of the Pound and a weakness in the Sterling and Euro which has led to a 10% appreciation of the LE against the Sterling and the Euro and a 5% appreciation of the LE against the

• Dollar. This has impacted all export prices with only a partial hedge in costs.
• The floatation was critical in lifting us out of significant losses, but margins have been

squeezed by cost inflation and currency appreciation over the past two years returning the company to losses.

Lecico is cutting costs and unlocking capital

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• In response to these challenges Lecico launched a number of programs to try and cut costs:

– Over LE 100 million in cost savings in Lecico Egypt (raw material changes, overtime and expat savings, headcount reductions) – of which LE 70 million savings earmarked to begin in 2019. – Over LE 30 million in cost savings outside of Egypt (headcount reductions, closing subsidiaries, etc) through 2018 – Lecico is targeting at least an annual saving of another LE 20 million from restructuring of Lebanon (2020 onwards) – Lecico sold real estate assets unlocking LE 60m in 2018 and targeting a further LE 400m+ from land in Lebanon

• Lecico Egypt also reduced tile capacity by 30% to 24m sqm per year

– Capacity was unsold due to market shrinkage and over capacity – Relative saving of LE 30m + compared to working below capacity – Reduced physical footprint allowing for future land sales

• Ongoing program to reduce working capital

– Reduce receivables through tighter terms in export and better collection locally – 1H 2019 average receivables days lowest in over five years – Reduce finished goods inventories through stagnant/obsolete sales program and tighter discipline on production levels – 2H 2019 average inventory days lowest in over five years – Restructuring of Lecico Lebanon in 2019 should cut total inventories by 10% and unlock cash through production reductions – Reduce major subsidiaries finished goods stock levels and payment terms to tighten discipline and move cash to Egypt – 2019 saw historic low receivables and inventory days within Lecico Group

• These projects are ongoing and in 2018 helped us to have a small reduction in net debt

despite significant bottom line losses and negative cash flows from operations.

Financial overview

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Profit and loss

Net sales Cost of sales breakdown (1H 2019) EBIT* Net Profit *

* = 1H 2018 EBIT and Net profit includes LE 76.7m in one-off income

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Quarterly P&L Trends

Net sales Gross profit EBIT* Net Profit*

* = 2018 includes LE 25.7m in one-off operating profit in 1Q and LE 51.0m in 2Q.

P&L Breakdown by Quarter

17 Lecico Group 2014 2015 2016 2017 2018 2019 Profit & Loss (LE Million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY FY FY 1H Sanitary Ware 336.9 359.2 396.7 404.4 393.4 411.1 435.1 377.7 370.9 380.6 746.6 718.2 834.0 1,497.3 1,617.2 751.5 Tiles 185.8 212.6 216.2 216.0 242.1 274.2 235.8 250.3 246.4 202.8 780.5 605.4 599.5 830.7 1,002.4 449.2 Brassware 23.0 14.2 20.7 20.7 17.6 19.7 20.3 28.3 19.8 16.1 46.1 46.9 63.0 78.5 86.0 35.9 Net Revenues 545.8 586.0 633.6 641.1 653.0 705.0 691.2 656.3 637.1 599.5 1,573.2 1,370.5 1,496.4 2,406.5 2,705.5 1,236.6 Cost of Sales 411.9 454.7 508.1 499.8 509.4 580.6 586.0 584.7 512.2 542.4 1,184.5 1,154.3 1,343.1 1,874.5 2,260.7 1,054.6 Gross Profit 133.9 131.3 125.5 141.3 143.6 124.4 105.2 71.7 124.9 57.1 388.8 216.2 153.3 531.9 444.9 182.1 % of Sales 25% 22% 20% 22% 22% 18% 15% 11% 20% 10% 25% 16% 10% 22% 16% 15% Selling expenses 34.7 36.0 39.7 36.2 39.0 40.5 41.2 36.7 39.8 34.8 65.8 83.0 86.0 146.6 157.3 74.6 Administration expenses 46.6 47.6 50.0 59.3 47.2 53.0 58.8 54.4 50.7 54.4 128.1 134.2 115.6 203.4 213.4 105.1 Overheads 81.3 83.6 89.8 95.5 86.2 93.5 99.9 91.0 90.5 89.2 193.9 217.2 201.6 350.1 370.7 179.7 % of Sales 15% 14% 14% 15% 13% 13% 14% 14% 14% 15% 12% 16% 13% 15% 14% 15% Operating Profit (EBIT) without exceptional 52.6 47.7 35.8 45.8 57.4 30.9 5.3 (19.4) 34.4 (32.1) 194.8 (1.0) (48.3) 181.9 74.2 2.4 % of Sales 10% 8% 6% 7% 9% 4% 1%

• 5%
• 12%
• 8%

3% 0% Exceptional gain (loss) 25.5 50.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 76.4 0.0 Net Financial Expenses (27.6) (34.1) (42.7) (48.1) (57.0) (58.1) (54.5) (49.9) (45.9) (47.2) (91.3) (79.3) (101.0) (152.5) (219.6) (93.0) Dividend Income 0.0 0.0 6.4 (0.0) 0.0 0.0 5.1 0.0 2.5 (0.0) 2.6 2.5 3.2 6.4 5.1 2.5 Exchange Variances 2.9 7.7 1.0 4.7 5.1 (10.0) (1.9) (1.7) (5.2) (4.4) 9.2 11.6 121.2 16.3 (8.6) (9.6) Profit before tax 27.9 21.3 0.5 2.4 31.0 13.7 (46.0) (71.1) (14.1) (83.6) 115.3 (66.2) (25.0) 52.1 (72.4) (97.7) % of Sales 5% 4% 0% 0% 5% 2%

• 7%
• 2%
• Taxes & minorities

(9.3) (7.6) (5.7) 7.7 (6.6) (8.7) (4.9) (21.8) (13.9) (3.3) (23.7) 1.1 (25.1) (14.8) (42.0) (17.2) Net Profit after tax 18.6 13.7 (5.2) 10.1 24.4 5.0 (50.9) (92.9) (28.1) (86.9) 91.6 (65.1) (50.1) 37.2 (114.3) (114.9) % of Sales 3% 2%

• 2%

4% 1%

• 6%
• 2%
• 2018

2019 2017

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Key Segmental Analysis

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

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Quarterly Key Segmental Trends

Sanitary ware sales volumes Sanitary ware average price and cost Tiles sales volumes Tile average price and cost

All Segmental Breakdowns by Quarter

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Lecico Group 2014 2015 2016 2017 2018 2019 Sanitary Ware Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY FY FY 1H Egypt 491 418 496 419 438 485 409 396 372 386 2,066 1,995 2,183 1,825 1,728 757 Lebanon 30 38 41 37 20 27 35 24 20 55 150 109 151 146 106 75 Exports 731 721 779 860 794 841 967 883 779 805 3,118 2,730 2,655 3,091 3,486 1,584 Total Volume 1,252 1,177 1,316 1,316 1,253 1,353 1,412 1,303 1,171 1,246 5,335 4,835 4,990 5,061 5,321 2,416 Average Selling Price 269.1 305.2 301.4 307.3 313.9 303.9 308.2 289.7 316.8 305.6 140.0 148.5 167.1 295.8 303.9 311.0 Revenue 336.9 359.2 396.7 404.4 393.4 411.1 435.1 377.7 370.9 380.6 746.6 718.2 834.0 1,497.3 1,617.2 751.5 Cost of Sales 216.8 239.4 284.5 284.9 273.2 312.7 350.0 326.5 286.3 338.4 617.3 606.2 675.6 1,025.7 1,262.4 624.7 Average Cost Per Piece 173.2 203.4 216.2 216.5 218.0 231.1 248.0 250.5 244.6 271.7 115.7 125.4 135.4 202.7 237.3 258.6 Gross Profit 120.1 119.8 112.2 119.5 120.2 98.4 85.1 51.1 84.6 42.2 129.3 112.0 158.4 471.6 354.8 126.8 Gross Profit Margin 36% 33% 28% 30% 31% 24% 20% 14% 23% 11% 17% 16% 19% 31% 22% 17% Lecico Group 2014 2015 2016 2017 2018 2019 Tile Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY FY FY 1H Egypt 4,653 5,171 4,896 4,274 5,039 5,995 4,406 5,225 4,055 3,935 25,457 20,581 21,270 18,994 20,666 7,990 Lebanon 116 139 172 131 71 125 150 132 112 183 1,603 1,074 956 558 478 295 Exports 677 724 929 1,288 1,185 1,106 1,210 1,110 1,844 995 5,985 4,132 3,012 3,618 4,611 2,838 Total Volume 5,447 6,034 5,996 5,693 6,295 7,227 5,766 6,467 6,011 5,113 33,045 25,786 25,237 23,171 25,755 11,124 Average Selling Price 34.1 35.2 36.1 37.9 38.5 37.9 40.9 38.7 41.0 39.7 23.6 23.5 23.8 35.9 38.9 40.4 Revenue 185.8 212.6 216.2 216.0 242.1 274.2 235.8 250.3 246.4 202.8 780.5 605.4 599.5 830.7 1,002.4 449.2 Cost of Sales 182.7 206.1 210.6 203.5 223.8 254.1 223.3 240.2 213.1 194.6 537.8 516.3 627.6 803.0 941.4 407.7 Average Cost Per sqm 33.6 34.2 35.1 35.7 35.5 35.2 38.7 37.1 35.5 38.1 16.3 20.0 24.9 34.7 36.6 36.7 Gross Profit 3.1 6.5 5.6 12.5 18.3 20.1 12.5 10.1 33.3 8.2 242.6 89.1 (28.1) 27.7 61.0 41.5 Gross Profit Margin 2% 3% 3% 6% 8% 7% 5% 4% 14% 4% 31% 15%

• 5%

3% 6% 9% Lecico Group 2014 2015 2016 2017 2018 2019 Brassware Analysis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY FY FY 1H Egypt 33,843 20,637 27,921 26,070 21,957 25,445 23,885 35,084 23,630 15,973 134,866 126,515 150,938 108,471 106,371 39,603 Exports 160 321 1,600 3 16 5 5 2,085 415 1,007 160 1,940 10 Total Volume 33,843 20,637 28,081 26,070 22,278 27,045 23,888 35,100 23,635 15,978 136,951 126,930 151,945 108,631 108,311 39,613 Average Selling Price 679.4 687.1 735.9 792.1 790.0 728.6 850.9 807.0 838.3 1,007.5 336.9 369.7 414.5 722.5 793.6 906.6 Revenue 23.0 14.2 20.7 20.7 17.6 19.7 20.3 28.3 19.8 16.1 46.1 46.9 63.0 78.5 86.0 35.9 Cost of Sales 12.3 9.2 12.9 11.4 12.4 13.9 12.6 17.9 12.8 9.4 29.3 31.8 39.9 45.9 56.9 22.2 Average Cost Per Piece 364.7 444.6 461.0 437.9 557.8 513.1 528.2 511.1 539.8 588.6 213.6 250.8 262.8 422.4 524.9 559.5 Gross Profit 10.7 5.0 7.7 9.2 5.2 5.8 7.7 10.4 7.1 6.7 16.9 15.1 23.0 32.6 29.1 13.8 Gross Profit Margin 46% 35% 37% 45% 29% 30% 38% 37% 36% 42% 37% 32% 37% 42% 34% 38% 2018 2018 2019 2019 2018 2019 2017 2017 2017

Balance Sheet by Quarter

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Balance Sheet 2014 2015 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 (LE m) Q3 YE YE YE 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

‎ Cash and short-term investments 246 168 377 354 365 298 261 368 284 356 187 154 145 ‎ Inventory 668 701 890 1,013 1,092 1,086 1,134 1,183 1,139 1,165 1,087 1,149 1,088 Receivables 450 497 691 710 753 777 744 823 891 903 765 731 745 Related parties -debit balances 62 62 66 43 45 55 39 28 26 35 23 23 31 Current Assets 1,425 1,428 2,024 2,121 2,255 2,216 2,178 2,403 2,339 2,459 2,062 2,056 2,010 Non-Current Assets 777 731 770 758 779 769 782 781 761 756 744 737 721 Total Assets 2,202 2,159 2,794 2,880 3,034 2,985 2,960 3,184 3,100 3,215 2,807 2,794 2,731 ‎ Banks Overdraft 735 827 1,204 1,228 1,391 1,383 1,390 1,539 1,491 1,615 1,332 1,233 1,368 Current portion of long-term liabilities 45 38 47 47 47 46 47 40 33 33 20 36 30 Trade & other payables 385 357 438 490 476 497 465 521 493 543 519 538 445 Total Current Liabilities 1,164 1,222 1,690 1,765 1,914 1,927 1,902 2,100 2,017 2,192 1,871 1,806 1,844 ‎ Long-term loans 98 60 67 55 44 32 20 15 10 5 73 65 Other ‎ long-term liabilities 1 Provisions 10 10 11 9 10 10 11 10 9 9 9 9 9 Deferred tax 34 31 26 25 25 25 23 18 18 18 23 24 25 Total Non-Current Liabilities 142 101 104 90 78 67 53 43 37 32 33 106 98 Total Liabilities 1,306 1,322 1,794 1,856 1,993 1,994 1,955 2,143 2,054 2,224 1,903 1,912 1,942 Minority Interest 9 6 5 4 2 1 19 20 20 19 23 20 15 Total Equity 886 831 995 1,020 1,038 990 986 1,021 1,026 972 880 861 774 Total Equity, Minorities and Liabilities 2,202 2,159 2,794 2,880 3,034 2,985 2,960 3,184 3,100 3,215 2,807 2,794 2,731 Receivables Days 79 98 130 93 94 94 88 87 91 91 74 77 75 Payables days 42 36 49 47 44 39 36 35 34 36 31 37 30 Inventory Days 211 227 242 224 230 216 221 212 191 190 178 205 188 Gross Debt 877 924 1,319 1,331 1,482 1,461 1,457 1,594 1,534 1,654 1,352 1,342 1,463 Gross Debt / Equity 0.99 1.11 1.33 1.30 1.43 1.48 1.48 1.56 1.50 1.70 1.54 1.56 1.89 Net Debt 631 756 942 976 1,117 1,164 1,196 1,226 1,250 1,298 1,165 1,188 1,318 Net Debt / Equity 0.71 0.91 0.95 0.96 1.08 1.18 1.21 1.20 1.22 1.33 1.32 1.38 1.70 Current Ratio 1.22 1.17 1.20 1.20 1.18 1.15 1.15 1.14 1.16 1.12 1.10 1.14 1.09 Assets Turnover 0.71 0.63 0.54 0.76 0.75 0.79 0.81 0.82 0.88 0.85 0.97 0.91 0.91 Working Capital (Inv. + Receivable -Payables) 762 876 1,164 1,257 1,384 1,380 1,423 1,490 1,540 1,527 1,336 1,345 1,392

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Working Capital and Returns

Working capital Returns and leverage Capital expenditures 2018f Maintenance Capex and tile diversification investment LE 110.0m

23

Thank you

For additional information, please contact:

Taher G. Gargour Telephone: +203 518 0011 Fax: +203 518 0029 E-mail: tgargour@lecico.com

Visit our website at: www.lecico.com

Forward-looking statements:

This presentation may contain certain “forward-looking statements”, relating to Lecico Egypt S.A.E. business, which can be identified by the use of forward-looking terminology such as “will”, “planned”, “expectations”, “forecast” or similar expressions, or by discussions of strategy, plans or intentions. Such statements may include descriptions of investments planned or currently under development by Lecico Egypt S.A.E. and the anticipated impact of these investments. Such statements reflect the current views of Lecico Egypt S.A.E. with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Lecico Egypt S.A.E. to be materially different from any future results that may be expressed or implied by such forward-looking statements.