Investor presentation KARO – START Day 6th October 2020

KARO´s investor presentation, presented by Jakub Hemerka, at the October START Day. You will find the answers to questions that came up during the presentation below.

Are you considering the consolidation of results at the parent company level for the greater clarity?

The KARO Group has yet to reach the legal parameters for mandatory consolidation, so we are only consolidating key economic indicators. This is significantly cheaper for us. However, we are aware of the benefits of consolidation, and we are adjusting the reporting system in our subsidiaries to be ready to publish consolidated statements as soon as possible.

What is your current market position (consequences of the spring crisis, competition in Italy)?

Due to to the spring crisis, KARO managed to win orders and customers at the expense of established Italian competitors and to strengthen its market position. However, from the global perspective, we are still a relatively small, highly specialized cowhide and buffalo leather processor, although we have established ourselves with leading European furniture manufacturers.

Is Karo considering paying out a dividend? If so, when approximately and what percentage of the net profit?

Upon entering the PX Start market of the PSE, KARO announced that it pursues a growth strategy in the short, medium, and long term, working on horizontal growth (expanding product lines for sales growth) and vertical integration (expanding activity to include primary raw materials to increase flexibility and added value). As growth requires significant investment, until 2025, if not longer, we plan to reinvest the profit in development and thus increase the value of the company.

Is Iveco Czech Republic a.s. one of your customers?

No, the KARO group specializes in leather processing for the furniture industry, while entry into the automotive sector is our long-term plan.