Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — FY2018 Earnings Presentation
23 slides from Fauji Fertilizer's earnings presentation, Mar 8, 2019
Slide 1: Corporate Briefing
Corporate Briefing For the year ended December 31, 2018 March 8, 2019
Slide 2: Sequence of Presentation
Sequence of Presentation 1 2018 Review 2 Corporate Awards 3 Thar Energy Limited 4 Future Outlook / Challenges 5 Q & A Session 2
Slide 3: 2018 Review
APEC 2018 Review
Slide 4: Business Environment - 2018
Business Environment - 2018 The Country witnessed one of the worst With offloading of excessive inventories Rupee devaluation during 2018 while during last year, 2018 started with interest rates also increased sharply, relatively balanced market dynamics. negatively impacting operating cost and prof
Slide 5: FFC - 2017 vs 2018
FFC - 2017 vs 2018 2017 2,513 2,522 534 650 2018 Production (KT) Savings through import substitution (US$ M) 8 3 10,711 14,439 Urea Inventory (KT) Net Profit (Rs M) 3,223 3,030 8.42 11.35 Total Fertilizer Sales (KT) EPS (Rs / share) 97,316 108,365 29,352 33,383 Revenue - Including Subsidy (Rs M) Equ
Slide 6: Sona Urea Production (KT) - 2018
Sona Urea Production (KT) - 2018 2nd highest 2,600 production ever 2,523 2,522 2,513 2,300 2,485 2,469 2,408 2,405 2,403 2,396 2,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 6
Slide 7: Offtake & Revenue - FFC 2018
Offtake & Revenue - FFC 2018 4,000 120 108 100 3,000 86 97 526 Revenue (Rs in Billion) 74 81 80 503 87 74 222 80 10 181 212 Offtake (KT) 74 140 81 2,000 60 55 45 40 1,000 2,482 2,406 2,399 2,409 2,371 2,408 2,426 2,475 2,527 20 - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales Qty - Urea Domest
Slide 8: Industry Urea Sales - Domestic (KT)
Industry Urea Sales - Domestic (KT) 7,000 5,903 5,816 5,810 6,000 5,618 5,585 5,500 5,276 5,000 4,000 3,000 2,000 1,000 - 2012 2013 2014 2015 2016 2017 2018 8
Slide 9: Urea Market Share
Urea Market Share Domestic Urea Market Share FFC carried a minimal urea inventory of 2% 3 KT (2017: 8 KT) only at the close of 2018. 11% Urea Inventory Share 43% 2% 2018 34% 50% 0% Industry 5% 2018 inventory 10% 4% 170 KT 43% FFC2% FFBL Engro Fatima Others 6% FFC FFBL Engro Fatima Others 12% 43% 6
Slide 10: DAP Highlights and Combined Market Share 2018
Highlights 2018 – DAP FFC marketed second highest imported DAP quantities ever of 480 KT translating into record DAP revenue of around Rs 31 billion. Combined FFC / FFBL DAP market share stood at 52% as compared to 56% achieved in 2017. 600 56% 60% 52% Combined Market Share 400 40% Sales - KT 21
Slide 11: DAP Closing inventory (KT)
DAP Closing inventory (KT) 250 213 200 150 100 50 39 - - 0 2015 2016 2017 2018 11
Slide 12: Profitability
Profitability Net Profit EPS Rs in Million Rs / share Actual 2018 14,439 11.35 Super Tax 877 0.69 Adjusted Profit 15,316 12.04 Actual 2017 10,711 8.42 % age increase 43 % 12
Slide 13: Operating Highlights
Operating Highlights For the Year Ended December 31, 2018 2017 Variance % Production - Sona Urea KT 2,522 2,513 p 9 - Sales - Sona Urea " 2,527 2,697 q (170) (6) Sales Revenue (incl Subsidy) Rs M 108,365 97,316 p 11,049 11 Finance Cost " 1,637 2,445 q 808 33 Investment Income " 2,635 1,417 p 1,218 8
Slide 14: Corporate Awards
AGG Corporate Awards
Slide 15: Awards & Achievements
Awards & Achievements SAFA Award 2017 Ranked amongst the best under “Corporate Governance Disclosures” category Best Corporate Report Award 2017 - ICAP / ICMAP First position in “Chemical & Pharmaceuticals” sector Best Sustainability Report Award 2017 - ICAP / ICMAP Ranked amongst the best sustainab
Slide 16: New Venture: Thar Energy Limited
New Venture Thar Energy Limited
Slide 17: Thar Energy Limited – Project Snapshot
Thar Energy Limited – Project Snapshot Project Snapshot Project Role Company Particulars EPC Contractor China Machinery Engineering Project Size 330 MW Corporation (CMEC) Project Developer HUBCO Project Cost US$ M 520 Sindh Engro Coal Mining Debt / Equity (75:25) 390 130 Coal Supplier Company (SECMC
Slide 18: Thar Energy Limited (TEL)
Thar Energy Limited (TEL) Financing agreements signed on December 20, 2018. EPC contractor mobilized on site and project completion activities are progressing as per plan The Company has invested Rs 1.46 billion in the project till December 31, 2018 18
Slide 19: Future Outlook / Challenges
AGG Future Outlook/ | Challenges
Slide 20: Future Outlook / Challenges
Future Outlook / Challenges High gas cost / Delay in receipt of subsidy / 1 1 Declining gas pressure 2 1 adjustment of GST Pricing pressure due to FTR – impacting margins of 3 1 Govt. intervention 41 imported fertilizers High DAP prices may impact Resolution of GIDC Levy with 5 1 farmers’ affordabil
Slide 21: GIDC Pass through impact
GIDC Pass through impact Fuel GIDC (Rs. 150/MMBTU) PKR / Bag 36 Total GIDC Impact 380 Retail Price of Urea in 2011 1,580 Factors affecting retail price* Price decrease due to reduction in GST (from 16% to 2%) (191) GIDC Impact per bag 380 Non-gas related costs (Salaries, maintenance etc) 152 Feed ga
Slide 22: Q & A Session
AGG QO & A Session
Slide 23: Thank you
ZG Thank you
Fauji Fertilizer Company — FY2018 Earnings Presentation on 6ix