Lucky Core Industries Limited · PSX:LCI
Lucky Core Industries — ICI Pakistan — Investor Presentation (September 2020)
54 slides from Lucky Core Industries's investor presentation, Sep 11, 2020
Slide 1: ICI Pakistan Limited Corporate Briefing FY 2019-20
ICI Pakistan Limited Corporate Briefing FY 2019-20 Date: Sept 11, 2020 1
Slide 2: YBG: Unleashing the True Potential of ICI Pakistan Limited
YBG: Unleashing the True Potential of ICI Pakistan Limited ❑ ICI has over 75 years of presence in Pakistan and predates to the formation of the Country. In FY 2019-20, ICI’s presence in Pakistan ICI Pakistan Limited celebrated 75th year of its existence. ❑ Formerly part of British industrial giant I
Slide 3: One of the largest Industrial Groups in Pakistan
One of the largest Industrial Groups in Pakistan • Founded in 1962, YBG is a prominent industrial Industries YBG Serves conglomerate in Pakistan with aggressive domestic and international investments • Textiles • Construction • USD 2.6bn worth of assets • Chemicals • YBG has a strong financial and p
Slide 4: The History of ICI Pakistan Ltd.
The History of ICI Pakistan Ltd.
Slide 5: Our Core Values
Our Core Values Customer Integrity & Passion for Delivering Innovation Centricity Responsibility People Enduring Value 5
Slide 6: Pandemic Management and HSE&S
HSE&S Objective Ensure safe operations with Zero Lost Workday Injury across businesses Pandemic Management “Pandemic Watch Committee” Status constituted on February 26, 2020 Achieved 28.9mn >40 controls categorized broadly covering: Safe-Man Hours (Since last reportable incident) Communication Busin
Slide 7: ICI - Integrated part of Economic Fabric
ICI - Integrated part of Economic Fabric • Diversified Soda Ash business & product portfolio catering Polyester the needs of every industry in the Pharmaceuticals country Animal Health • Strong reputation Chemicals & Agri Sciences for excellent quality & customer Infant Nutrition service 7
Slide 8: Our State of the Art Manufacturing Plants
Our State of the Art Manufacturing Plants Polyester Soda Ash Soda Ash Polyester 8
Slide 9: Soda Ash Business
Soda Ash Business 9
Slide 10: Soda Ash Business - Synonymous with Quality and Longevity Since 1944
Soda Ash Business - Synonymous with Quality and Longevity Since 1944 Production capacity 425 Ideal location in terms of KTPA, operating at almost access to major raw materials 100% capacity utilization. – both salt and limestone with continuous long term supply. Self Sufficient in energy Close proxi
Slide 11: The Soda Ash Industry & Key Segments of ICI Soda Ash Business
The Soda Ash Industry & Key Segments of ICI Soda Ash Business ICI – Market Leader Key Segments of Soda Ash Business Imports, 2% OCL, 32% ICI, 66% Plans to further strengthen market share via aggressive capacity expansions 11
Slide 12: Soda Ash – Maintain Leadership Through Aggressive Expansion Strategy
Soda Ash – Maintain Leadership Through Aggressive Expansion Strategy • Continued expansion to maintain & grow market leadership position: ▪ Current site expansion to 550 KTPA is in process and expected to complete in 2022-23. ▪ 14,000 TPA Refined Sodium Bicarbonate expansion project expected to come
Slide 13: Projects Completion & Growth Plans
Projects Completion & Growth Plans Approved Expansion Since YBG Acquisition in Process 125,000 KTPA ~PKR 11bn Other Planned Expansion 75,000 KTPA ~PKR 5.5b DA 70 KTPA RSB 14 KTPA ~PKR 0.6bn ~PKR 0.5bn 550,000 tons Conversion of Other energy mix Expansions RSB 14 425,000 CFB-1&2 CFB-3&4 DA 140 ~PKR ~
Slide 14: Soda Ash Business – Performance
Soda Ash Business – Performance Revenue (PKR Bn) 16.54 15.65 12.55 10.84 11.04 10.13 EBITDA (PKR Bn) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 5.32 5.20 4.1 4.2 3.9 3.2 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 14
Slide 15: Polyester Business
Polyester Business
Slide 16: Pioneer in Polyester Manufacturing in Pakistan
Production capacity Pioneer In Polyester 135,400 tons per Second Largest Strong Safety & Manufacturing In annum and Domestic Player Environment Record Pakistan operating at full capacity utilization Excellent Reputation Strong Technology Strong Management For Customer Captive Power Partner Capabilit
Slide 17: Polyester Fibre – An Integral Part of Textile Sector
Polyester Fibre – An Integral Part of Textile Sector PAKISTAN TEXTILES EXPORTS (US$ BILLIONS) Future Outlook 13.9 ❑ Pakistan’s Textiles Exports showing signs of 13.6 13.5 revival 13.2 13.3 ❑ Procedural and Tax relaxations on the import of textile machinery 12.6 12.5 12.5 ❑ Export enhancement incenti
Slide 18: Focus on Specialty Fiber - Value Addition for Sustainable Growth
Focus on Specialty Fiber - Value Addition for Sustainable Growth HEALTH & HYGIENE Aspiring full utilisation of Batch lines and reaching 25 KT on existing assets SUSTAINABILITY VERSATILITY 2018/19 2019/20 9.5 KT 10.07 KT TRACEABILITY Potential of value added variants and we intend to capitalise on it
Slide 19: Strategy Going Forward
Strategy Going Forward Develop specialty fibers & ❖ Cost Rationalization Minimize Commodity risk Past ❖ Value Creation ❖ Terylene Clean ❖ AntiMicrobial ❖ CiCLO ❖ Dytru ❖ Low Pill Fiber Present Penetrate in Export Arena as specialty fiber manufacturer Focus on Export Growth ❖ Development of USA and T
Slide 20: Polyester Business – Performance
Polyester Business – Performance Revenue (PKR Bn) 23.64 19.96 18.16 15.9 14.4 13.4 EBITDA (PKR Bn) 1.31 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 0.96 0.98 0.5 0.4 0.1 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Note: Polyester includes PowerGen profit as well 20
Slide 21: Pharmaceuticals
TRANSFORMING Pharmaceuticals TO IMPROVE LIVES
Slide 22: ICI Pharma Business Transformation
ICI Pharma Business Transformation Change in business model Trading → Acquisition → Manufacturing 22
Slide 23: Pharma Portfolio
ICI Pharma Business Universe Cardio Care SP. Onco Cardio Metabolic Pulmo & Surgi CNS Care Team Pharma Pain & Gastro Portfolio Critical Care Care Paeds Gynae Care Care Nutra Merpen Team Team 23
Slide 24: Post Acquisition - Manufacturing Footprint
Post Acquisition - Manufacturing Footprint Merpen Fortexone 2gm Avaam HATTAR PLANT Vildagli 8 New Rosuva Brands ptin Launched statin Avaam Viltin Plus Met HAWKESBAY Dorinem PLANT NUTRA PLANT Certifications Hattar Plant HB Plant Nutra plant GMP Certified GMP Certified ISO Certified 9001:2015 3 Manufa
Slide 25: Capability to manufacture multiple dosage forms at our facilities
Capability to manufacture multiple dosage forms at our facilities HATTAR PLANT Powder for Injection: Liquid Injectables: Orals: • Cephalosporins Both Aseptic and • General Tablets • Oral Penicillins( Capsules/ Dry • Carbapenems terminally sterile • General Capsules Syrups/ Tablets) • Penicillins pro
Slide 26: Pharma Industry Value growth is 11.6%
Pharma Industry Value growth is 11.6%. Volume growth slowed down to -0.5% I C I P h a r m a i s t h e 2 nd f a s t e s t g r o w i n g o r g a n i z a t i o n MAT Jun 2020 Value [Rs. Value Volume Rank Parameter Value Sh. % Value Gr. % Value-EI Volume Gr. % Volume-EI (Bn.)] -- INDUSTRY 441.4 100.0 11
Slide 27: Pharmaceuticals – Growing Faster than the Market!
Pharmaceuticals – Growing Faster than the Market! ❑ Post-acquisition, the business has faced many external and internal challenges, however, the team has taken several course correction measures. ❑ Focus on Leveraging Economies of Scale. ❑ Focus now on organic growth through increasing market share
Slide 28: Pharmaceutical Business – Performance
Pharmaceutical Business – Performance (PKR Bn) Revenue 7.38 7.33 6.6 4.7 3.5 3.8 (PKR Bn) EBITDA 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 0.8 0.82 0.6 0.4 0.4 0.30 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Note: Pharma includes Cirin results as well
Slide 29: Animal Health Business
ICI PAKISTAN LTD. Animal Health Business
Slide 30: Animal Health Business Footprint
Animal Health Business Footprint Across Pakistan every Month! 3 Manufacturing Operations! • 20,000 Farmers • 1,861,030 Units • 6,000 Vet Professionals • 30,000 MT Silage Engagement • 500 Breeder, Feed Millers • 1,248,000 Bags Vanda 1 1 2 Vet-Manufacturing Feed Mill Silage Unit Sites Manufacturing Ex
Slide 31: Animal Health Portfolio
Animal Health Portfolio Livestock Feed (organized sector) & Medicine industry Poultry Medicine Industry (ICI markets) (ICI markets) Market: Compound Feed Antibiotics Market: 49% PKR 25Bn PKR 13Bn 48% Nutrition & Restorative 19% Biologicals 22% 700 8M Livestock PKR 2.98Bn Poultry PKR. 0.92Bn Anthelmi
Slide 32: Animal Health – Leveraging our Presence to Achieve Scale
Animal Health – Leveraging our Presence to Achieve Scale • Strong presence in one of most essential & important industries ▪ Large animal population (low productivity) + strong governmental focus • Focus on the largest segments providing profitable scale opportunities ▪ Investment behind Farmer’s Ch
Slide 33: Animal Health – Performance
Animal Health – Performance Revenue (PKR Bn) 4.9 Recovering the 4.3 impact of Somatech 3.73 3.91 (rBST), PKR 1.6Bn 3.1 revenues, PKR 2.7 600m EBITDA. EBITDA (PKR Bn) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 0.7 0.5 0.4 0.4 0.3 0.27 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 33
Slide 34: Strategic International Partnerships
Strategic International Partnerships Representing and distributing for 2 Recent partnerships to bring out of the top 5 global Animal Health innovative solutions to Pakistan companies Over 40 year relationship Over 18 year relationship
Slide 35: Chemicals & Agri Sciences
Chemicals & Agri Sciences
Slide 36: Business Overview
Business Overview Chemicals Agri Masterbatches
Slide 37: Chemicals Business
Chemicals Business Presence in major industrial sectors Oil /Petroleum Solvents Automobiles Coating Construction Textiles Auxiliaries Footwear Polyurethanes Textiles Textiles PVAs Appliances Textiles Detergents Sports Dyes & Inks Chemicals Surgical Personal Care Sanitary Fertilizer Pharma Trading Ad
Slide 38: Masterbatches
Masterbatches Successful sales of 900+ tons in the FY 19-20. Brand “Shades” launched with a promise statement Business all geared-up for capturing further market. “Bringing substance to life” Launched all product variants comprising of: • Standard Colours • Specialized Colours • Additives – Antislip
Slide 39: Chemicals – Focus on Import Substitution & Local Manufacturing
Chemicals – Focus on Import Substitution & Local Manufacturing ❑ Well diversified business ❑ Maintain leadership position ❑ Increase mix towards local manufacturing and value-added portfolios ❑ Leverage MB facility, Huntsman & other international partnerships ❑ Margin boost, product portfolio ration
Slide 40: Agri Sciences Division Portfolio Analysis
Portfolio Analysis Seeds Agrochemicals 49% 51% Agri Sciences Division Sunflower 39% Insecticides 55% Corn 26% Herbicides 24% Vegetable Seeds 27% Fungicides 11% Others 8% Crop Nutrients 10%
Slide 41: Agri – Create Impact Across the Agri Chain
Agri – Create Impact Across the Agri Chain ❖ Strong presence & equity in one of the most important sectors with increased government support. ❖ Strategic Focus Areas: ➢ Corn segment ➢ Cotton seed ➢ Sunflower ➢ Hybrid Rice ➢ Rationalize portfolio & focus on leading crops & high margin vegetable
Slide 42: Our Key Partners
6 Our Key Partners HUNTSMAN inovyn GyWANHUA gf Enriching lives through innovation A a TA VENATOR (0) U PL (OGS AIREN CHEMICAL CORP. wt, _ 7 a Diversey Gevor MOMENTIVE <Q> S2tSeRginas TNDUSTRIES @ vac
Slide 43: Chemicals & Agri Sciences Business – Performance
Chemicals & Agri Sciences Business – Performance Revenue PKR Bn 8.11 8.02 7.8 7.3 5.8 5.3 EBITDA PKR Bn 0.86 0.8 0.77 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 0.7 0.5 0.3 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Slide 44: Infant Nutrition - Imported
Infant Nutrition - Imported NutriCo Pakistan Pvt. Ltd. ➢ NutriCo manages the import, marketing and distribution of nutrition products of Morinaga Milk Industry Co., Ltd. in Pakistan. ➢ ICI Pakistan has 40% equity share of NutriCo Pakistan since 2014. . ➢ The share of profit received during the FY 19
Slide 45: NutriCo Morinaga Plant
NutriCo Morinaga Plant Local Manufacturing Site
Slide 46: Infant Nutrition – Locally Manufactured
Infant Nutrition – Locally Manufactured Manufacturing Morinaga Manufacturing Facility ~PKR 6 Bn Morinaga Japan ICI 51% Holding Unibrands (24.5%) Private Limited (24.5%) The construction of a state-of-the-art NutriCo Morinaga manufacturing facility was completed and the plant inaugurated in September
Slide 47: Growing Usage of Baby Food in Pakistan
Growing Usage of Baby Food in Pakistan PKR 77BN PKR 64BN PKR 13BN Over 4 MN Total Baby Food Industry Formula Milk Infant Cereals Babies born every year Annual value growth of 9% 37BN local (40KT) + 13KT Source: Consumer Panel & Market Intel. 27 BN imported (11KT) Source: Nestle Sales Figure We are o
Slide 48: Financial Results
Financial Results ICl PAKISTAN LTD.
Slide 49: Key Highlights – For The Year Ended June 30th, 2020
Key Highlights – For The Year Ended June 30th, 2020 (Unconsolidated) Net Turnover Gross Profit Operating Result -8% 11% 13% Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019 53,599 58,329 10,462 9,452 5,575 4,935 EBITDA Profit After Tax Earning Per Share 9% 31% 31% Jun 30
Slide 50: Performance – ICIP Unconsolidated
Performance – ICIP Unconsolidated Revenue EBITDA PKR Bn PKR Bn 58.33 8.26 53.60 7.66 49.11 7.08 6.46 41.36 5.53 37.52 36.95 4.87 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 EBIT PKR Bn 5.58 4.94 4.40 4.04 3.48 3.04 2014-15 2015-16 2016-17 2017-18 2
Slide 51: Financials
Financials 6 months 6 months CY 2012 2013-14 2014-15 CY 2012 2015-16 2016-17 2013-14 2014-15 2017-18 2015-16 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20 2013 2013 over Net Turnover 34,682 18,316 38,233 37,515 34,682 36,954 18,316 38,233 41,364 37,515 49,108 36,954 58,329 53,599 41,364 49,108 58,
Slide 52: Financial Performance – FY 2014 to FY 2020
Financial Performance – FY 2014 to FY 2020 Consolidated Results EBITDA EPS 8.4 45.0 8.0 35.5 7.7 40.0 7.0 35.5 35.0 6.0 30.0 24.6 29.6 27.3 27.4 5.0 25.0 4.0 19.9 20.0 3.0 15.0 EBITDA PKR Bn EPS PKR 2.0 10.0 1.0 5.0 0.0 0.0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 PKR Bn Dividend Per
Slide 53: Value Generation to Shareholders
Value Generation to Shareholders For the FY 2019-20, ICI Pakistan limited out performed the PSX 100 Index by 28.93% (ICI’s share price increased by 30.47% in comparison to PSX 100 Index which increased by 1.53%)
Slide 54: ICI Share Price – As at June 30, 2020
ICI Share Price – As at June 30, 2020
ICI Pakistan — Investor Presentation (September 2020) on 6ix