On Wednesday, November 29, 2006, a corporate presentation of NEOCHIMIKI L.V. LAVRENTIADIS S.A. was made by Mr. Lavrentis Lavrentiadis, Managing Director and Mr. John Papavassiliou, CFO, at the Association of Greek Institutional Investors.
To begin with the presentation, Mr. Lavrentiadis made a brief allusion to the core activities of NEOCHIMIKI L.V. LAVRENTIADIS group of companies which regard the distribution of chemical raw materials and the production of detergents for multinationals and private label companies.
Next, Mr. Lavrentiadis mentioned the recent corporate developments which are already being implemented. More specifically, NEOCHIMIKI L.V. LAVRENTIADIS S.A. proceeds with a change of its corporate structure by merging 14 subsidiaries, thus aiming at improving its monthly cash flows for 2007 through the reduction of administrative expenses and the application of a more effective tax planning.
Moreover, through the merger of its subsidiaries, Lamda Detergent S.A. and Lamda Cosmetics S.A., the Group will significantly accelerate its entrance in the cosmetics market and for 2007 expected sales will increase by 12-15% and earnings after tax by 18-20%.
Finally, a reference was made to the agreement for 100% acquisition signed by NEOCHIMIKI L.V. LAVRENTIADIS S.A. with INTERKEM S.A.. The agreement is subject to the fulfillment of the provisions of the relevant preliminary agreement. INTERKEM operates a chemicals unit in Avlida, where NEOCHIMIKI L.V. LAVRENTIADIS S.A. already has its own logistics centre. The acquired company will also represent the first powder-coating unit in the Group. This acquisition will also reduce distribution cost, give access to new clients and will lead to an increased market share in the Greek chemical market.
Furthermore, within the frame of the Group''s growth in the Southeastern European market, the company has participated as of 17/11/2006 in the two biddings taking place in Serbia, which regard the privatization of two production units of lubricants and chemical products. More specifically, the biddings have to do with the privatization of the company FAM KRUSEVAC through the sale of 70% of its share capital and with the privatization of the company Rainerija nafte Beograd through the sale of 70% of its share capital.
Carrying on with the presentation, the Chief Financial Officer, Mr. Papavassiliou, reported the consolidated financial figures, stressing out that the growth marked in the nine-month period of 2006 confirmed the Group''s Business Plan. The company achieved high growth rates with regard to sales which amounted to 183 mil.Euro, marking an increase of 95.3% in relation to 9M 2005, EBITDA which rose to 38 mil. Euro, up by 94.9% and net earnings after tax and minorities which stood at 63 mil.Euro, up by 624% as compared to those of 2005, which include 48.9 mil.Euro from the placement of shares of the subsidiary company LAMDA DETERGENT S.A..