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FOTA S.A.
Presentation to Investors
Gdynia, March 2008
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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.
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Agenda
FOTA Group Profile
FOTA Group’s Market Position
Strategy
Financial Results of Fota Group
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FOTA Group Profile
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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
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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
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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
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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
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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
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FOTA Group’s market position
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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.
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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
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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
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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
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0100200300400500600700
Italy
Ger
man
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UE
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UK
Aus
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Fra
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Bel
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Spa
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Hol
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Por
tuga
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Cze
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Gre
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Pol
and
Hun
gary
Ukr
aine
124109 101
75 73 66 65 63 62 62 59 53 48 44 43
020406080
100120140
Por
tuga
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Spa
in
Fra
nce
UE
-15
Italy
Irel
and
Gre
ece
Fin
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Pol
and
Bel
gium
Cze
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Hun
gary
Aus
tria
Ger
man
y
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Strategy
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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
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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
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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
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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
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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