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1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Page 1: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

1

Presentation to the Financial Community

Montreal and Toronto, Canada

January 18 & 20, 2005

Page 2: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

2

Contents

Business Lines, Market Positioning and Strategic Outlook

Financial Review

F.G. Europe’s History

F.G. Europe at a Glance

Corporate Governance

CAPEX and W/C

Share Data

Dividend Policy

Main Points

3

4

6

22

23

28

32

33

34

Page 3: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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F.G. Europe at a Glance

• 3 Main Business Lines:• Air Conditioners,• White Electrical Goods and• Mobile Telephony

• European Orientation:• Greece• Italy, France, Germany, Czech Rep.• Serbia & Montenegro, Bulgaria, Romania, Albania, Bosnia, FYROM

• Revenues Y2004: 208 mil. € (202 mil. € in Y2003)

• Market leader in Greek A/C market• Strong presence in Italy and upcoming

player in South East Europe• Exclusive representation of world class

brands like Fujitsu and own brands with high brand awareness for good quality

Warehouses in Piraeus, Greece

Headquarters in Athens, Greece

Page 4: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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F.G. Europe’s History

Foundation of Viometal

Eskimo S.A.

1958

1968

IPO listing on the Athens

Stock Exchange

23rd Greek Manufacturer with over 23% market

share

1988

1973

Exclusive distribution agreement for Greece

with Fujitsu General Ltd. Renewed 1999 until 2009

Master dealer of TIM. Renewed 2000

sine die

1999

1997

Exclusive distribution agreement for Italy with Fujitsu General Ltd. until

2009

Page 5: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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F.G. Europe’s History

2001

2003

Exclusive distribution agreement for South

East Europe with Fujitsu General Ltd. until 2011

Merger between F.G. Europe S.A. and Eskimo S.A.

2005

Exclusive distribution agreement for plasma

TVs and monitors for Italy with Fujitsu General Ltd.

until 2015

Page 6: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Air Conditioners Business Line

Own brandsExclusive Distribution

Brand names

Page 7: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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• Over 1,200 sales points in Greece

• Over 250 sales points in Italy

• Over 20 selected wholesalers in South East Europe

• Over 17 years of excellent relationships with customers

• Ecologically friendly products with Refrigerant: R- 410a, R- 407c

F.G. EuropeWholesaler

Retail stores& Installers

Greece

South East Europe

SubsidiariesItaly

F.G. Europe’s Distribution Channels for A/Cs

• 15.5% market share in split units and 5% in light commercial systems

Air Conditioners Business Line

Page 8: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Air Conditioners: Sales

0

10

20

30

40

50

60

70

Mil. €

2001 2002 2003 2004

Q4

Q3

Q2

Q1

Year Mil. €

2001 53.30

2002 63.17

2003 67.46

2004 50.20

Air Conditioners Revenues

Product mix in 2003 vs. 2004 in Mil. €

51.57 40.86

9.3415.88

0.00

20.00

40.00

60.00

2003 2004

Branded Non branded

Page 9: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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A/Cs: Exports & Market Shares

25%

7%

5%6%

5%

52%

Tenora & Aginor Carrier SoulisTrane F.G. Europe Others

Market shares in Greece (split units)

33.37%

19.19%

10.26%

31.41%

5.78%

Greece Italy Spain South East Europe Rest EU

Sales country mix in 2004

Market shares in Greece (light commercial systems)

7%

15%

8%

8%

6%

10%

46%

Tenora & Aginor CarrierSanyo Grissin PappasF.G. Europe DimitriouOhers

Page 10: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Air Conditioners : European Markets

Greece: 15.5%*

Italy: 3.5%

South East Europe:17.6%

*source: ICAP Company estimates on European AC Sales

Page 11: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Air Conditioners : European Markets

• Livorno Warehouse

Main Warehouse

• Thessalonica Warehouse

ITALIA

GREECE

ALBANIA

SERBIAMONTENEG

ROFYROM

BULGARIA

ROMANIA

BOSNIAHERZEGOVINA

• FG Italia Spa Dolo

Page 12: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Growth Drivers: Air Conditioners

Greek Market:

• Leading market position and innovative product portfolio

Other Markets:

• Organic growth potential in South Eastern Europe

• Increased export orientation

• World known brand names

• Product portfolio in line with market trends of increased demand for low cost high reliability appliances

• Own brand names without territory restraints

• World known brand names

Page 13: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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White Electrical Goods Business Line

Own brand

Exclusive Distribution

Manufacturing Partners

Page 14: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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White Electrical Goods: Sales

0

2,000

4,000

6,000

8,000

10,000

Thousands €

2001 2002 2003 2004

Q4

Q3

Q2

Q1

Year Mil. €

2001 8.42

2002 6.54

2003 7.55

2004 6.88

White Electrical Goods Revenues

Product mix in 2003 vs. 2004 in Th. €

984

2,661 2,888

1,418 1,5641,782 1,4411,688

0

1,000

2,000

3,000

4,000

2003 2004

Refrigerators Washing MachinesCookers Others

4%16%

30%11%

2%

37%

Others F.G. Europe BSHFourlis Trade Electrolux Miele

Market Shares in 2003

Page 15: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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• Strategic cooperation with leading world class manufacturers

Greek Market:• Innovative product portfolio enhanced with

appliances with low penetration in the population

South East Europe:

• Organic Growth through use of existing strong distribution channels of A/Cs

• Leverage on best value for money

• Own brand name with 94% brand awareness among the Greek population

• Over 1,000 sales points in Greece

White Electrical Goods: Growth Drivers

Page 16: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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143%

94%

28%

98%

40%

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Fridges Washers Dryers Cookers Dish-washers

Source: Merloni data

White Electrical Goods: Penetration

Penetration in Southern Europe

Page 18: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Mobile Telephony Business Line

• Master dealer of in all mobile products for the last 8 years

• Wholesale of prepaid scratch cards for the last 3 years:

50,000 mobile telephony subscriptions

50 resellers all over Greece

20 resellers all over Greece

Strong and expanding market position: Increase in market share from 17% to 21% in 2004

Page 19: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Mobile Telephony: Sales

0

50

100

150

200

Mil. €

2001 2002 2003 2004

Q4

Q3

Q2

Q1

Year Mil. €

2001 25.15

2002 39.42

2003 127.33

2004 150.84

Mobile Telephony Revenues

21%

35%

19%

25%

F.G. Europe Germanos MTC Others

Source: Vodafone and Company estimates

Mobile Telephony Market Shares in 2004

• Annual Market Volume for prepaid scratch cards in Greece was € 720 mil. in 2003 (Providers estimates)

• Penetration 85% of total population (9.31 mil. Users of which 65% use prepaid services)

Page 20: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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New Strategic Business Line

• Exclusive distribution of Fujitsu General, Ltd. for Greece, Italy and

South Eastern Europe• Introduction on all markets of OEM

manufactured plasma TVs under own brand name

Plasma TVs

Own brandExclusive Distribution

Page 21: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Business Line: Plasma TVs

Expected Development for Large Displays (Plasma & LCD >40’’) in EMEA

130,836

9,280,366

404,641368,7220

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2003 2004 2005 2006 2007 2008

PrivateBusiness

Quantity in Units

Page 22: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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CAPEX and W/C

(in mil. €) 2005 2006 2007

CAPEX

Air conditioners 1.5 2.0 2.5

White electrical goods 0.5 1.0 1.0

Mobile Telephony 0.2 0.3 0.4

Plasma TVs 0.2 0.5 1.0

Total 2.4 3.8 4.9

Working Capital

Air conditioners 20.0 22.0 25.0

White electrical goods 2.0 3.0 4.0

Mobile Telephony 0.5 1.0 1.5

Plasma TVs 0.5 1.0 2.0

Total 23.0 27.0 32.5

Page 23: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Key Financial Figures: Revenues

Consolidated Revenues

0

50

100

150

200

250

Mil. €

2001* 2002* 2003** 2004

Q4

Q3

Q2

Q1

88.6112.2

185.7208.1

*Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002

**Restated

Page 24: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Key Financial Figures: P&L

(in mil. €) 9M, 2004 2003** 2002* 2001*

Revenues 166.21 186.57 112.19 88.60

Gross Margin 12.99 21.58 14.45 12.47

Operational Expenses 7.18 10.03 8.43 7.13

EBITDA 5.81 11.56 6.39 5.37

Financial result, net -1.82 -2.91 -3.86 -3.55

Profits before tax 3.73 6.80 4.14 2.16

Profits after tax - 4.89 2.60 1.02

(in €)

EPS (gross) - 0.13 0.07 0.04

EPS (net) - 0.09 0.04 0.02

Dividends - 0.07 0.05 0.02

Management culture/orientation towards shareholders value creation

*Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002 **Restated

Page 25: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Key Financial Ratios: P&L

9M, 2004 2003 2002 2001

Gross Margin 7.82% 11.54% 12.88% 14.08%

Expenses as % revenues

4.32% 5.37% 7.51% 8.04%

Financial result as % of revenues

1.09% 1.59% 3.44% 4.01%

EBT as % revenues 2.23% 3.65% 3.69% 2.44%

Creation of Shareholder value through expenses and interest cost reduction

0%

2%

4%

6%

8%

9M, 2004 2003 2002 2001

Expenses as % of revenues

0%

1%

2%

3%

4%

9M, 2004 2003 2002 2001

Financial result as % of revenues

Page 26: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Key Financial Figures: Balance Sheet

(in mil. €) 9M, 2004 2003 20021 20011

Cash 11.53 1.87 1.99 4.41

Receivables 52.67 56.08 45.94 48.61

Inventory 26.92 15.20 16.76 60.99

Equity 21.73 18.02 16.78 17.24

Liabilities 19.04 28.71 13.62 29.19

Financial liabilities 66.37 35.34 36.85 80.34

Total Assets 108.29 82.11 67.04 126.55

Balance Sheet structure improved

¹ Pro forma audited Consolidated Financial Statements of Eskimo S.A. and F.G. Europe S.A. for the years 2001 and 2002

Page 27: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Other Key Ratios

9M, 2004 2003 2002 2001

Collection period (days) 87 109 149 200

Inventory turnover (days) 48 34 63 292

Payment period (days) 34 64 35 118

Current ratio 2.95 1.24 1.77 1.41

Quick ratio 2.19 1.00 1.32 0.68

Equity ratio 20% 21% 25% 14%

Improved operating management: Continuously reducing collection and inventory turnover period

0

50

100

150

200

9M, 2004 2003 2002 2001Collection Period

0

50

100

150

200

250

300

9M, 2004 2003 2002 2001Inventory turnover in days

Page 28: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Shareholders Structure

Free float >46% with over 13,000 individual Stockholders

Shareholders: Ownership Total

George Fidakis 53.60%

Greek Institutionals 9.43%

Foreign Institutionals 6.12%

Fujitsu General (Euro) GmbH 4.38% 10.50%

Retail Investors 26.47%

Total: 100.00%

53,187,840 common shares outstanding @ 0.30 € par

Page 29: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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The F.G. Europe Share

• Last Closing: € 3.42 (January 12, 2005)• Market Capitalization > 181.9 mil. €

Page 30: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Share Information

• Trading Symbols: ΕΣΚ (ASE),ESC GA (Bloomberg), ESKR.AT (Reuters), FGE.STU (Boerse Stuttgart), ISIN GRS083003012

As of January 12, 2005 1W 1M 3M 6M 1Y 2Y

Performance 0% 3.64% -2.84% -11.40% -13.20% -10.94%

High 3.42 3.28 3.26 3.26 4.42 4.42

Low 3.40 3.44 3.52 3.86 3.26 2.13

Ø Volume shares 85K 61K 47K 48K 70K 122K

Ø Volume in € 287K 201K 157K 167K 266K 338K

• Indices: ATG, FTSE-40, Wholesale Index, MSCI Small Cap Greece, Eurobank Mid-Cap Private Sector 50

Page 31: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Listed Convertible Bond

Trading Information

Exchange Athens Stock Exchange

Last closing 101%

ISIN GRC083004873

Fundamental Information

Issue date August 3, 2004

Maturity August 2, 2007

Issue volume 16,621,200 €

Par value 100.00 €

Coupon 3.8% semiannually

Conversion rate 1 : 22 common shares

Conversion price 4.5454 €

Redemption price 112.2%

Page 32: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Dividend Policy

• Our policy is to distribute satisfactory dividend given that the results and operating cash flow allow it

• For the fiscal year 2004 there are two options one is to buy back shares or to distribute dividends.

For the fiscal year 2004 the Board of Directors intends to propose to the Extraordinary General Assembly of Shareholders in February 8, 2005 instead of dividend

distribution a share buy back program.

Page 33: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Corporate Governance

• Board of Directors consists of 5 executive and 4 non-executive and independent Members (Audit committee)

• Transparency: ad-hoc disclosures, shareholding structure, related party securities transactions

• Reporting: Audited Financial statements are published quarterly according to Greek GAAP and from 2005 according IFRS

• Risk Management and Internal Control procedures

• Important decisions are reserved to the approval of the General Assembly of shareholders

Page 34: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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Key Points

• Organic growth

• Operational excellence

• Solid shareholders’ structure

• Cost and expenses reduction

• Continuous profitability

• Market leader in Air Conditioners business

• Long history

• Increased export orientation

Page 35: 1 Presentation to the Financial Community Montreal and Toronto, Canada January 18 & 20, 2005

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DISCLAIMERThis presentation contains forward-looking statements. These statements appear in a number of places in this presentation regarding the intent, belief or current expectations with regard to our customer and supplier base, future growth, market share, financial results and other aspects of our business activities and the markets in which we operate.Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors.Addressees are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. F.G. Europe undertakes no obligation to update publicly or revise any forward-looking statements,as a result of events or circumstances after the date of this presentation, including, but not limited to changes in economic conditions, F.G. Europe’s business strategy or the occurrence of other unanticipated events.

F.G. Europe S.A., 128, Vouliagmenis Ave., GR-16674 Glyfada, Greece

Tel.: +30 210 9697800, Fax: +30 210 9603802,

Email: [email protected] http://www.fgeurope.gr