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

Presentation on theme: "1 FOTA S.A. Presentation to Investors Gdynia, March 2008."— Presentation transcript:

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

2 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.

3 3 Agenda  FOTA Group Profile  FOTA Group’s Market Position  Strategy  Financial Results of Fota Group

4 4 FOTA Group Profile

5 5  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

6 6 More than 35 years experience on the market 1973 19901990 19921992 20002000 20012001 20032003 20042004 20052005 20062006 20072007 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% 70% FOTA Czech Republic FOTA Hungary AUTOPRIMA /SLOVAKIA/ 80% EXPOM ART GUM FOTA S.A. 99% 61% AUTOPRIMA /CZECH REPUBLIC/ 80% Merger in 1-st half of 2008

7 7  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

8 8 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

9 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

10 10 FOTA Group’s market position

11 11 Sales Structure of the Fota Group dane za 9 miesięcy 2007 r.

12 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 Share of Kager brand in FOTA’s sales* Sales structure – foreign markets * Data for 1-10.2007

13 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

14 14 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

15 15 Strategy

16 16 Strategy 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

17 17 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

18 18 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

19 19 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

20 20 FOTA S.A. ul. Stryjska 24 81-506 Gdynia tel. +48 58 69 99 547 fax. +48 58 69 99 579 www.fota.pl