FHL

1
MARBLE
GRANITES
DRY MORTARS
MARBLE
February 2007
2
Profile

• F.H.L. KIRIAKIDIS is a specialist in
• Marble quarrying
• Marble processing
• Distribution and sale of marble products
• Production, sale and distribution of dry
  mortars
• Working force 682 (Greece 226 MACEDONIA
  403 China 53)
• Major Distribution centres in Athens,
  Salonica, Italy, China

F.H.L. KIRIAKIDIS is ? An international player
(65 of revenues in 2005 stem from abroad ? The
leading regional marble producer ? A global
leader in the manufacture of premium quality
snow- white marble
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History
? FHL Kiriakidis was established in 1991 ? FHL
was listed on the Athens Stock Exchange in 1998
FHL acquired Mermeren Kombinat in 2000 FHL
owns 88 of Mermeren Kombinat FHL Mermeren was
listed on the ASE in 2004 ? FHL established
Cosmos Building in China in 2000 ? FHL owns 49
of Cosmos and Mermeren owns 51
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Production Capability
? FHL Kiriakidis group currently has an annual
marble production capacity of 22,000 m3 ? FHL
Mermeren (FYROM) has an annual marble production
capacity of 25,000 m3 ? FHL owns excavation sites
(marble quarries) in Greece (Thassos,
Granitis, Volakas, Nevrokopi) Macedonia
(Prilep) ? FHL has marble reserves of 5.3 million
m3 70 years of production with current
capability and speed ? Product line includes ?
a diverse range of high quality marbles ?
marble by-products such as processed plates,
floor tiles, etc. ? prefabricated mortars
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Strategic Business Units
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Mermeren Kombinat

• Acquisition 100 of Mermeren Kombinat at Prilep
  in October 2000
• Acquisition cost 16,3 million
• FHL acquired 12 new quarries in Prilep
• Excavation of the snowwhite Sivec marble
• Total marble excavation 90.000 tons in 2004
• 80.000 tons in 2003
• Turnover 13.4 ml in 2006
• 13.9 ml in 2005
• 11,2 ml in 2004
• The factorys total area is 45,000 m2
• The factorys main building, covering an area of
  9,000 m2

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Strategy
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Strategic Intent

• To utilize our know-how and production
  capabilities for projects like the Grand Mosque
• To target added value, artistic marble
  projects globally
• To increase productivity at the our quarries
  and factories
• To establish the new factory at Kilkis
• To proliferate into more dry mortars products
• To increase sales in the Far East region
  through Cosmos

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SWOT Analysis
Strengths
Weaknesses

• Company reputation
• Near monopoly on high quality white marbles
• Experience high quality of personnel and
  management
• High experience in the quarrying and processing
  of marble
• Strong worldwide distribution network

• Highly leveraged
• Spread out facilities

• Potential to expand further FHL operations in
  China
• Acquisition of monopolistic position in beige and
  white marbles
• Large raw materials deposits
• Significant experience in the management of large
  quarries
• Expansion of the worldwide distribution network

• Significant competition from both domestic and
  international competitors creating pricing
  pressure
• A significant economic downturn in one of the
  Companys key markets, may significantly impact
  its results as marble products are considered as
  luxury items
• Regulatory problems regarding marble quarrying in
  Greece

Threats
Opportunities
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Financials
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FHL Group Income Statement (ml )
2004 2005 2006e 2007F
Revenues 39.4 45.90 44.07 47.25
EBITDA 11.5 11.4 11.7 14.1
Margin 29,3 24.8 26.2 29.9
EBT 4.8 5.6 5.5 6.6
Margin 12,4 12.2 12.5 13,9
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FHL Group Balance Sheet (ml )
2004 2005 2006F 2007F
Assets 62.02 62.6 77.7 77.7
Inventories 27.1 33.5 31.0 31.4
Other current assets 40.2 50.9 50.3 48.2
Total Assets 129.3 146.9 159.1 157.3
Total shareholders equity 43.2 46.2 60.0 64.0
Long term debt 52.6 53.2 61.4 56.4
Short term debt 33.5 47.5 37.7 36.9
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Athens Stock Exchange
FHL Athens Stock Exchange KYPMReuters
KRKr.ATBloomberg
KYRM GA Share Price (20/3/07) 2.20 Average
Trading Daily Volume 67,424 Capitalization Feb
2007 54,5 ml Shares Outstanding
24.772.000
FHLM Athens Stock Exchange MEPKOReuters
FHLr.ATBloomberg MERKO GA Share Price
(20/2/07) 7.60 Average Trading Daily
Volume 2,155 Capitalization Feb 2007 35.6 ml
Shares Outstanding 4,687,000
Shareholders Structure
Kyriakidis family 53.0
Institutional Investors 8.3
Retail Investors 38.7
Total 100
Shareholders Structure
FHL Kyriakidis Group 88
Employees 2
Investors 10
Total 100
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Investment Case
? FHL Kiriakidis Group ? is a major force in
the global marble industry ? has a worldwide
reputation for delivering on time ? has the
visibility as an artistic marble entity ? has
prime marble stock for almost 100 years ? has
expanded into the fast growing economies of
the Far East ? has penetrated the
Middle East markets