An Egyptian Exporter

Full Year 2009 Results Presentation

March 2010

Corporate Summary

3

Introduction: An Egyptian exporter

Split of sanitary ware and tiles1Split of domestic and export1

* All production facilities are owned and controlled by Lecico

AlexandriaKhorshid

Borg El-Arab

Cairo

Established 1997

Sanitary ware capacity2.0 million pcs 20054.4 million pcs end 2007

Tiles capacity8.5 million m2 mid – 2011 (est)14.9 million m2 mid – 2013 (est)17.0 million m2 mid – 2015 (est)

Brassware capacity0.3 million pcs mid – 2010 (est)

Borg El-Arab

Established 1975

Sanitary ware capacity2.5 million pcs 20051.8 million pcs (inc FC) end 2008

Tiles capacity17.0 million m2 200521.4 million m2 mid - 2007

Khorshid

Established 1959

Sanitary ware capacity:350,000 pcs 2007

Tiles capacity1.1 million m2 2005

Kfarchima

Kfarchima Beirut

• Lecico Egypt S.A.E. is one of the world’s largest sanitary ware

producers 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 c50% of Lecico’s

sanitary ware sales volume going into Europe

• Lecico finished a major capacity expansions in tile and sanitary

ware in 2007 which boosted capacity to 21.4m sqm of tiles and

6.7m pieces of sanitary wary and fire clay

• In Summer 2010, Lecico is expected to begin brassware

production with a 300,000 piece per annum capacity factory

• In Summer 2011, Lecico is expected to begin production in its

new tile factory in Borg El Arab. The factory is expected to reach

17m sqm capacity over the following 4 years

Note: (1) FY 2009

Vitry Le Francois

Established 1894

Fire Clay Sanitary capacity:130,000 pcs 2006

Sanitary ware (59%)

Tiles (41%)

Egypt (39%)

Lebanon (9%)

Export (52%)

Corporate Profile

5

Growing exports

•c 60% of sanitary ware is exported

•SW exports 12% CAGR (2000-09)

•10%+ UK, France & Ireland mkt share

Investment case

Experience

•Brand with over 50 years of history

• Multi-national management

• Decades of OEM exports to Europe

Strong historic growth record

20% Revenue CAGR (2000-2009)

24% Net Profit CAGR

Regional leadership

• Sanitary ware market leader in Egypt and Lebanon

• Largest producer in the Middle East

Significant cost advantage

• USD 10/piece cost (50% of peers)

• c USD 1.50/piece shipping to Europe

• European quality product

Supplier for key European brands

Export-led growth

Aggressive expansion program

Tile capacity more than doubled and sanitary ware capacity grew 49% since 2000

Substantial further tile capacity expansion underway

6

Domestic market leadership

38%

13%11%

8%

8%

8%

7%7%

Lecico

Cleopatra

Gravena

Aracemco

American Standard

Pharaos

Duravit

Others

25%

19%

17%

10%

6%

23% Cleopatra

Pharaos

Lecico

Al Amir

Gemma

Others

15%

30%55%

Lecico

Uniceramic

Imports

Market leadership in Egypt

Market leadership in Lebanon

• Leading sanitary

ware market share

• 2.0m piece Lecico

capacity expansion

ongoing

• Leading sanitary

ware market share

• Branded as

European quality

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

Sanitary ware market (0.5 million pieces)1 Tile market (8.5 million m2)1

• Competitive pricing to

support distributors’

sanitary ware sales

• 4.4 m sqm Lecico

capacity expansion

ongoing

• Number two market

share in tile sales

• Presence maintained

to complement

sanitary ware sales

Note: (1) Management estimates for 2005

55%

45% Lecico

Imports

7

Growing exports

Growth in group’s exports

Export focus on Europe

• Sanitary ware export volumes grew at 13% CAGR (2001-2009)

• Volumes fell slightly in 2005 due to market slowdown in UK

• Average of over 80% of exports are to Western Europe

• Drop in exports in 2008 due to Sanitec bridge in 2007

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 c60% of its sales vs. 20% for local peers

• Lecico sells to over 50 countries (including OEM sales)

• Approximately 25% of exports (17% of sanitary ware

sales) are for other brands

• Lecico represents 50% of Egypt’s sanitary ware exports

with the balance split among 9 manufacturers

• UK estimated c12% market share in Lecico-branded sales

• A further c12% market share in OEM sales to the UK

1,229 1,240 1,431 1,982 2,389 2,267 2,884 3,638 3,063 3,364

51%46% 42%

50%56% 59%

62%65%

58% 60%

0%

20%

40%

60%

80%

0

1,000

2,000

3,000

4,000

5,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Exports/totalPieces (000)

Sanitary ware export volumes Percent of total volume

1,009 1,133 1,622 1,998 1,819 2,339 2,910 2,485 2,729

81% 79% 82% 84% 80% 81% 80% 81% 81%

0%

20%

40%

60%

80%

100%

0

1,000

2,000

3,000

4,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Europe/exportsPieces (000)

European sales volumes Europe/total exports (%)

400 470 560 650 680 650 725 770 663 744

4.8% 5.4% 6.1% 6.7% 6.6% 6.6% 7.5%8.3% 8.9%

12.6%

-5%

0%

5%

10%

15%

0

200

400

600

800

1000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Number of pieces sold (000 pcs) UK market share (%)

8

Significant cost advantage

International cost advantage

Lecico produces sanitary ware at an all-in average cost of US$14/ piece

– In Egypt, ceramic manufacturing cost averages US$10 / piece of sanitary ware

– The difference reflects higher packing costs for EU-destined exports and significantly higher industrial cost in Lebanon

– Our information suggest other low cost producers’ manufacturing cost averages US$15-25 / piece

– While European producers average US$30+ / piece depending on their market

Why is Lecico able to produce so cheaply?

– Egypt: Low energy costs, low labour cost, low investment costs, low effective taxes

– Size: 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

– Utilization: 85-90% capacity utilization rate versus 70% industry average in Egypt

– Efficiency: Production per employee is > twice that of our local competitors

Investment, distribution and overheads benefit from regional economies of scale

– Sanitary ware investment cost approx US$15-25 / piece vs. US$25-40 / piece global standard

– Low shipping cost to Europe: US$1.50 per sanitary ware piece vs. approx US$6+ for Asian manufactures

Growth strategy

10

• Aim to increase market growth

− UK, Ireland, France

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 regional and

international exports

• New and expanded OEM contracts – Sanitec, Heritage, SFA and others

• Potential future markets

− Germany, Algeria, Saudi

Arabia, Iraq, Syria

Financial overview

12

FY 2009 results overview

Strong recovery in 4Q leaves full year performance flat on 2008 – despite major slowdown in Europe

• 2009 revenue fell 2% to LE 1,055.2m, with sanitary ware revenues down 5% as a result of the decline

ASP due to exchange rates and a decrease in exports. This was offset by a 1% revenue growth in tiles.

• In 4Q 09, sanitary ware revenues rose 29% year-on-year with 35% volume growth more than

offsetting the negative impact of exchange rates on ASP and sanitary ware revenues.

• 2009 gross profit rose 1% to LE 383.1m, while the margin was up 1.2 percentage points at 36.3%.

• In 4Q 09, gross profits rose 23% while the margin rose 2.5 pp to 37.3%

• 2009 EBIT rose 6% to LE 182.6m on the back of growing gross profits and cuts to overhead spending.

EBIT margin rose 1.4 percentage points to 17.3%.

• In 4Q 09, EBIT rose 31% to LE 45.3m and margins rose 2.2 pp to 17%.

• 2009 net profit rose 1% to LE 110.2m, with the margin increasing 0.3 percentage points to 10.4%.

• In 4Q 09, net profit was up 90% at LE 28.7m with the margin up 4.2 percentage points at 10.7%.

13

Profit and loss

Net sales Cost of sales breakdown

EBIT Net Profit

265 382 559 697 652 720 990 1,081 1,055

39.1%36.3%

44.1%49.6% 49.2%

52.7%59.9%

51.3% 52.3%

0%

10%

20%

30%

40%

50%

60%

0

200

400

600

800

1,000

1,200

1,400

2001 2002 2003 2004 2005 2006 2007 2008 2009

Exports (%)LE million

47 72 108 188 140 118 157 172 183

17.9% 18.9%19.2%

26.9%

21.4%

16.4% 15.9% 15.9%17.3%

0%

5%

10%

15%

20%

25%

30%

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009

Margin (%)LE million

16 28 44 84 136 89 79 107 109 110

7.9%10.7%

11.6%

15.0%19.5%

13.6%11.0%

10.8% 10.1% 10.4%

-12%

-8%

-4%

0%

4%

8%

12%

16%

20%

0

40

80

120

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Margin (%)LE million

Raw materials (28%)

Other materials (14%)

Energy (12%)

Salaries and wages (13%)

Depreciation (10%)

Other costs (22%)

14

Quarterly P&L Trends

Net sales Gross profit

EBIT Net Profit

157.7 185.8 183.3 192.6 231.5 239.5 257.2 261.3 264.1 287.4 295.6 233.5 242.4 272.5 273.2 267.00

50

100

150

200

250

300

350

1Q

06

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

Rev

en

ues

(L

E m

)

56.1 66.4 64.0 65.9 78.3 84.9 91.5 91.6 91.9 106.3 100.1 81.2 86.0 102.8 94.4 99.6

36% 36% 35% 34% 34% 35% 36% 35% 35%37%

34% 35% 35%38%

35%37%

0

20

40

60

80

100

120

140

160

1Q

06

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

Gro

ss

Pro

fit

(LE

m)

0%

10%

20%

30%

40%

50%

Gro

ss

ma

rgin

(%

)

Gross profit Gross margin (%)

28.8 35.4 35.5 15.8 35.3 40.0 40.4 41.2 42.1 46.6 48.7 34.6 42.8 50.3 43.7 45.3

18%19% 19%

15%17%

16% 16% 16% 16% 16%15%

18%18%

16%17%

8%

0

10

20

30

40

50

60

70

1Q

06

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

EB

IT P

rofi

t (L

E m

)

0%

5%

10%

15%

20%

25%

EB

IT m

arg

in (%

)

Operating profit (EBIT) EBIT margin (%)

23.4 19.5 24.7 17.9 29.6 27.5 27.8 28.3 29.6 37.9 26.2 15.1 21.6 30.3 28.629.6

15%13%

13%

11%11% 11% 11%

13%

9%

11% 11% 11%10%

9%9%

6%

0

10

20

30

40

50

1Q

06

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

Ne

t P

rofi

t (L

E m

)

0%

5%

10%

15%

Ne

t m

arg

in (%

)

Net profit Net profit margin (%)

15

Segmental analysis

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

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

249 369 469 389 444 668 651 622

3.4

4.04.3

3.9

4.6

5.65.3

5.6

0

100

200

300

400

500

600

700

2002 2003 2004 2005 2006 2007 2008 2009

Reven

ues (

LE

m)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Vo

lum

es (

pcs m

)

Net sales revenue Total sales volume

74 93 110 101 96 119 123 11141 51 55 58 61 75 81 770

20

40

60

80

100

120

140

2002 2003 2004 2005 2006 2007 2008 2009

LE

per

pie

ce

Av price/piece Av cost/piece

110 168 234 164 161 244 222 192

44% 46%

50%

42%

36%36%

34%

31%

0

50

100

150

200

250

300

350

2002 2003 2004 2005 2006 2007 2008 2009

Gro

ss p

rofi

t (L

E m

)

0%

10%

20%

30%

40%

50%

60%

Gro

ss m

arg

in (

%)

Gross profit Gross margin (%)

133 191 228 263 276 322 430 434

10.8

14.615.3

17.7 18.4

21.5

25.023.6

0

100

200

300

400

500

2002 2003 2004 2005 2006 2007 2008 2009

Reven

ues (

LE

m)

0.0

5.0

10.0

15.0

20.0

25.0

Vo

lum

es (

sq

m m

)

Net sales revenue Total sales volume

12 13 15 15 15 15 17 189 9 11 10 10 10 11 100

5

10

15

20

2002 2003 2004 2005 2006 2007 2008 2009

LE

per

sq

m

Av price/sqm Av cost/sqm

39 54 66 78 91 103 158 191

30% 28% 29% 30%33% 32%

37%

44%

0

20

40

60

80

100

120

140

160

180

200

220

2002 2003 2004 2005 2006 2007 2008 2009

Gro

ss p

rofi

t (L

E m

)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Gro

ss m

arg

in (

%)

Gross profit Gross margin (%)

16

Balance sheet and cash flow

Working capital

Returns and leverage

Project Investment cost (LE m)

2010e

Maintenance work and other investments 30.0

Gres Porcellanato Tile plant phase 1 88.0

Total planned specific project capex 118.0

Capital expenditures 2010e

204 266 217 192 209 242 254 210 224 222216 208 129 96 78 110 122 109 70 8298 126 99 103 126 99 135 109 99 97323 348 246 185 160 253 241 210 195 2070

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Days

Inventory days (Inventory/cost of sales) Receivables days (Receivables/net sales) Payables days (Payables/Cost of sales) Net working capital days

.

9% 13% 18% 26% 20% 14% 12% 14% 15% 13%9% 11% 15% 19% 26% 14% 13% 12% 12% 12%

0.91.0

0.80.6

-0.1

0.2

0.6 0.60.6

0.4

-1.0

-0.5

0.0

0.5

1.0

1.5

0%

10%

20%

30%

40%

50%

60%

70%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Return on equity ROIC Net debt/equity

17

Revenues and margins

Segmental sales breakdown Sanitary ware export volumes by geographySanitary ware sales volume by geography

Segmental gross profit Tile sales volume by geography

FY 08

Egypt (71%)

Lebanon (8%)

Export (21%)

FY 08

Egypt (39%)

Lebanon (3%)

Export (58%)

FY 08

Europe (80%)

Middle East (15%)

Africa & other (5%)

FY 08

Sanitary ware (58%)

Tile (42%)

FY 08

Sanitary ware (60%)

Tile (40%)

FY 09

Sanitary ware (58%)

Tile (42%)

FY 09

Egypt (37%)

Lebanon (3%)

Export (60%)

FY 09

Europe (80%)

Middle East (16%)

Africa & other (5%)

FY 09

Sanitary ware (50%)

Tile (50%)

FY 09

Egypt (67%)

Lebanon (9%)

Export (24%)

Share performance and data

19

Shareholding structure and performance

• Lecico valued at a market cap of US$ 135 million with a 55% free float

– Almost all activity has moved from GDR to local share

– Local share trades US$ 283,000 per day and on 99% of trading days (12m Feb 2010)

Share liquidity overview (GDR) Share liquidity overview (Local)

Liquidity has moved to local share and improved

• Liquidity and trading frequency has vastly improved with shift to local share

– Trading frequency is more than doubled from c 40% of market days in 2005-2007

– Total average daily trading value has improved 55% from US$ 183,000 (2005-2007)

Lecico share price comparison

• Lecico trades at a trailing PER multiple of 6.8x 2008 earnings

– EV/EBITDA of 4.7x.

– Price to book value of 1.0x

– Dividend Yield (stock dividend) of 10%

Shareholding structure

Local float43%

GDR float12%

Intage / Gargour

36%

Concord PE9%

0

1

2

3

4

5

6

7

8

9

Oct-

07

No

v-0

7

De

c-0

7

Ja

n-0

8

Fe

b-0

8

Ma

r-0

8

Ap

r-0

8

Ju

n-0

8

Ju

l-0

8

Se

p-0

8

Oct-

08

De

c-0

8

Ja

n-0

9

Fe

b-0

9

Ap

r-0

9

Ma

y-0

9

Ju

l-0

9

Au

g-0

9

Se

p-0

9

No

v-0

9

De

c-0

9

Fe

b-1

0

0

5

10

15

20

25

30

35

40

45

50

GDR (USD, LHS) Local (EGP, RHS)

0

200

400

600

800

1000

1200

1400

Fe

b-0

5A

pr-

05

Ju

n-0

5A

ug

-05

Oct-

05

De

c-

Fe

b-0

6A

pr-

06

Ju

n-0

6A

ug

-06

Oct-

06

De

c-

Fe

b-0

7A

pr-

07

Ju

n-0

7A

ug

-07

Oct-

07

De

c-

Fe

b-0

8A

pr-

08

Ju

n-0

8A

ug

-08

Oct-

08

De

c-

Fe

b-0

9A

pr-

09

Ju

n-0

9A

ug

-09

Oct-

09

De

c-

Fe

b-1

0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Av daily value (USD 000, LHS) Days traded (%, RHS)

0

500

1000

1500

2000

2500

Fe

b-0

5A

pr-

05

Ju

n-0

5A

ug

-05

Oct-

05

De

c-

Fe

b-0

6A

pr-

06

Ju

n-0

6A

ug

-06

Oct-

06

De

c-

Fe

b-0

7A

pr-

07

Ju

n-0

7A

ug

-07

Oct-

07

De

c-

Fe

b-0

8A

pr-

08

Ju

n-0

8A

ug

-08

Oct-

08

De

c-

Fe

b-0

9A

pr-

09

Ju

n-0

9A

ug

-09

Oct-

09

De

c-

Fe

b-1

0

-10%

10%

30%

50%

70%

90%

110%

Av daily value (LE 000, LHS) Days traded (%, RHS)

20

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.