AGM 2014 engl - Eurofeu Asia

EUROFEU ASIA JSC
EUROFEU ASIA JSC – 2014 ANNUAL
GENERAL MEETING(AGM) REPORT
FIRE SAFETY & EQUIPMENT
THE BEST TO AVOID THE WORST
Eurofeu Asia JSC-Company office, Peace Avenue,
Bayangol District, Ulaanbaatar City, Mongolia
EUROFEU ASIA JSC ANNUAL RESULTS
2014
CONTENT
1.
2.
3.
4.
5.
6.
7.
About Eurofeu
2013 Operational results
2013 Financial results
2014 Target
Product & Services
Capital market &Company Stock
AGM Resolutions
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
ABOUT EUROFEU
Eurofeu Asia, founded in Mongolia in 2001, is a subsidiary of Eurofeu France and AER Holding. It
became a JSC on 17/01/2013, 10 years after its inception and is listed on Mongolian Stock Exchange
(MSE:SOI). It was created with the aim of providing a full range of European standard fire safety
equipment as well as a number of fire safety related services to a growing Mongolian mining and
corporate sector.
Since its inception, Eurofeu Asia has worked closely with the Mongolian Fire Department, the National
Emergency Management Agency and other Government Agencies in conducting communal training
sessions as well as assisting in the improvement of fire safety regulations and standards to meet the
emergence of new risks.
Eurofeu Asia has since expanded to become the leader on the Mongolian market; providing companies,
administrations and individual customers with Fire detection and firefighting equipment. In addition to its
range of European standard fire equipment, the company also provides free and paying fire fighting
training seminars, fire risk assessment as well as a full range of fire extinguisher refills and maintenance
services.
Over the past few years, Eurofeu Asia has grown considerably; it currently employs over 62 full time
specialists and technicians and has become the leading Fire Safety & Equipment Company in Mongolia.
As a member of NFPA and consultant for Mongol Daatgal, Eurofeu Asia is recognized as a strong source
of reliable information, training and equipment for everything to do with fire safety.
In 2013, company started a security service business under the Eurofeu Asia name. Advantage of our
security service is that all our security professionals are trained for fire fighting. Our service was much
appreciated by mining companies that operate mines in remote areas as our professionals are trained for
fire emergency.
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
2013 OPERATIONAL RESULTS
2013 has been a great year of achievement for our company. We introduced new innovation and
technology to fire safety sector in Mongolia and maintained our position as a market leader.
Our company cooperated with Ulaanbaatar City Police
Department and agreed to provide fire extinguisher and
emergency fire safety kit for every police branch in the city
area.
Others
30%
Gal
Impex llc
30%
Market Share
Eurofeu
Asia Jsc
40%
Currently our company is working with most of the
prominent companies in Mongolia and has contract with
26 companies with businesses in various sector from
mining to retailers.
Most notable customers include Oyu Tolgoi, MoEnCo,
SouthGobi, Altain Khuder, Peabody Energy, Wagner
Asia/Caterpillar, Leighton Asia, Bayan Airag Exploration
(Kerry group), Areva, Oyu Tolgoi, Sharyn Gol Mining.
Our company is solely distributing 40% of fire safety equipment demand in Mongolia.
Most of the international businesses operating in Mongolia choose high quality fire safety equipments
which benefits us as we provide a full range of European standard fire safety equipment as well as a
number of fire safety related services which suits the demand.
2014 Target
In 2013, the company revenue growth was +33,6% and in 2014, the company plans to grow the revenue
by 40% and reach MNT 1.32 bln. Currently (as of Apr 23, 2014) the company has already secured 85%
of the 2014 projected sales through contract and collected, as per our target, already 25% of the targeted
2014 income.
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
2013 FINANCIAL RESULTS
Balance (MNT ,000 )
Current asset
Cash and cash equivalents
Accounts receivable
Inventories
Total current asset
Non-current asset
Tangible asset
Total non-current asset
TOTAL ASSET
Liabilities and Shareholder’s equity
Account payable
Total current liabilities
Non-current liabilities
Total liabilities
Shareholder’s equity
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY
2011
2012
2013
224,747
118,590
343,337
108,731
5,018
182,184
387,824
39,914
100,630
368,714
576,635
79,908
69,972
413,309
85,670
135,559
523,384
92,424
167,414
744,049
122,895
157,775
237,660
58,184
363,975
122,895
290,414
17,723
255,384
267,999
81,384
445,360
298,689
413,309
523,384
744,049
949,133,787
Reveune, MNT
710,256,797
588,364,756
In 2013 revenue was substantially increased
by 33.6 % and almost reached MNT
1billion.
2011
2012
2013
949,133,787
2013 Quarterly revenue, MNT (on
accumulated basis )
Cost of goods sold, MNT
551,559,416
313,981,070
271,740,378
179,130,180
304,131,885
65,282,510
2011
Q1
Q2
Q3
Q4
2012
2013
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EUROFEU ASIA JSC ANNUAL RESULTS
INCOME STATEMENT
Revenue
Cost of goods sold
Gross Income
Gross margin
Operational Expense
Salary
Social Insurance
Business Trip
Administrative cost
Telecommunication cost
Insurance Cost
Utilities
Repair
Depreciation
Rent
Transport
Fuel cost
Advertisement cost
Other
Total operating expenses
Income before tax
Profit tax
Net Profit
NP margin
2014
2012
2013
710,256
313,981
396,275
949,133
271,740
677,393
55,8%
71.3%
146,739
13,821
10,913
31,654
245
7,942
14,892
15,165
111,949
2,524
23,496
9,610
52,660
454,894
(74,538)
(74,538)
-
422,368
43,204
13,775
7,625
10,311
3,812
7,274
14,200
54,079
13,251
638
52,497
642,409
34,100
3,410
30,690
3%
In 2013, company launched a security service which affected a substantial increase in salary cost. But this
also helped bring additional revenue. Overall the company recorded a net profit of MNT 30,7 mln.
The board of the company decided to declare a dividend of MNT 10 per share on March 14, 2014 from
2013 operation.
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
PRODUCT AND SERVICES
Eurofeu Asia offers following product and services
Fire Safety / Equipment Sales
-
ABC and CO2 fire extinguishers, fire blankets, fire hoses and
accessories, smoke alarms, spades, axes, sand boxes, fire
information boards
Automatic ABC and CO2 fire suppression systems, detection
equipment
Fire uniforms, signage, respiration masks, care safety kits,
home kits
Specialty firefighting equipment designed specifically for
industrial and mining sites
-
Fire Prevention Training
-
Free Level 1 Training for all, practical firefighting training
level 2 and 3
Emergency evacuation training, crowd management training
Basic fire prevention training, safety teams emergency
training
-
Maintenance and Supervision
-
-
Free fire risk assessments, training of corporate fire safety
officer
Mining fire specialists, creation and implementation of
evacuation plans, NEMA certification, insurance conformity
certificates
Maintenance contracts with the majority of clients. Annual
maintenance fees, with over 80,000 fire extinguishers being
sold since inception
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
CAPITAL MARKET AND COMPANY STOCK
/2013.12.31/
Stock Price /MNT/
2,700
Outstanding Shares
Eurofeu expanding while FDI and Economy are
shrinking
607,809
52 week High /MNT/
5,000
52 week Low / /
1,527
Number of shares traded /ш/
-
232,939
Market Capital /MNT/
1,641,084,300
Free float %
36
EPS
50.4
PB
5.4
P/E ratio
53.5
ROA
0.04
ROE
0.1
2013 has been a tough year for businesses in
Mongolia. Many companies had to reduce
their number of workers while EuroFeu
experienced a different situation. As many
mining companies stopped their site
operation, it increased the demand for
safeguarding their assets which benefited
Eurofeu Asia as the company has started a
security service in 2013.
International Partnership
-
2013 stock chart :
-
Eurofeu France is one of the largest fire
safety companies in Europe and is a 15
percent shareholder of Eurofeu Asia JSC,
sharing management skills and expertise.
As Mongolia’s mining companies become
more advanced, they require most
sophisticated fire safety systems. Eurofeu
Asia is locally well positioned to provide
such professional services with its partnersEurofeu France and DEF international.
Continues Growth
-
Minority
holders
36%
Nomad
Mongolia
4%
Luke
5%
Mr.Sebastien
36%
-
In 2001 company had sales of only USD
5’000 while in 2013 it has grown to USD
500,000.
20 %-ийн өсөлттэй байна. Revenue has
grown 20% yoy for 4 consistent years..
AER
Holdings
14%
Emanuel
5%
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EUROFEU ASIA JSC ANNUAL RESULTS
2014
AGM RESOLUTIONS
Number of Votes
Resolutions proposed at the AGM
Total Votes
For
1
Approve 2013 financial results
2
Amend corporate charter
Against
307,600
(50.6%)
307,600
(100%)
307,600
(50.6%)
307,600
(100%)
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