Bestway Cement Limited · PSX:BWCL
Bestway Cement — Investor Presentation (September 2021)
31 slides from Bestway Cement's investor presentation, Sep 30, 2021
Slide 1: Corporate Briefing Session
Corporate Briefing Session Bestway Cement Limited | 30 September 2021 Facilitated by Presided by Mr. Muhammad Amir Khan (CFO) Mr. Muhammad Irfan A. Sheikh (MD) Mr. Muhammad Danish Khan (Head BTR)
Slide 2: Contents
CONTENTS Bestway Key Highlights New Environment Group Projects & CSR Future Q&A Appendices Outlook Session Key Financial Data
Slide 3: Bestway Group
BESTWAY GROUP
Slide 4: Bestway Portfolio
BESTWAY PORTFOLIO One of the largest Largest 3rd largest retail 2nd largest retail 2nd largest cement overseas investor independent pharmacy in UK bank in producer in in Pakistan- wholesaler in UK with 760 Pakistan with more Pakistan Estimated value of having 65 Bestway pharmacies than 1,400 group i
Slide 5: Bestway Cement
BESTWAY CEMENT Bestway offers a wide range of products for domestic and international markets. We’re state-of-the-art production the only cement producer lines at four locations Selling cement Hattar Farooqia tonnes cement per annum Chakwal production capacity Kallar Kahar.
Slide 6: BCL Operational Areas
BCL OPERATIONAL AREAS Hattar Plant Head Office Farroqia Plant Islamabad Sales Head Office Sales Office Rawalpindi Peshawar KK Plant Mianwali Plant Chakwal Plant Sales Office Sales Office Multan Lahore
Slide 7: Key Highlights
=n KEY HIGHLIGHTS
Slide 8: BCL Capacity Utilisation
BCL CAPACITY UTILISATION BCL - Capacity Utilisation 81% 69% 2019-20 2020-21
Slide 9: Industry Growth and BCL Market Share
INDUSTRY GROWTH AND BCL MARKET SHARE (BASED ON DESPATCHES) Industry Local Cement Sales Growth/(Decline) BCL Market Share – Total Cement Sales BCL BCL Industry - North excl BCL Industry - South 20% 17% 2019-20 2020-21 17% 17% 18% 17% -1% -6% 66% 65% 2019-20 2020-21
Slide 10: Key Financial Highlights: Net Turnover
KEY FINANCIAL HIGHLIGHTS Net Turnover 60 57 53 54 52 51 46 In Billions 43 37 34 25 2016 2017 2018 2019 2020 2021 Years
Slide 11: Key Financial Highlights: Gross Profit
KEY FINANCIAL HIGHLIGHTS Gross Profit 30 46% 44% 23 23 36% 21 30% 29% In Billions 19 15 16 17 8 3% '- 1 2016 2017 2018 2019 2020 2021 Years
Slide 12: Key Financial Highlights: Net Profit
KEY FINANCIAL HIGHLIGHTS Net Profit 18 26% 25% 14 26% 13 20% 13 19% 12 In Billions 11 10 12 7 4 0% '- 2016 2017 2018 2019 02020 2021 Years
Slide 13: Key Financial Highlights: Net Cash from Operations
KEY FINANCIAL HIGHLIGHTS Net Cash from Operations 20 15 15 16 16 14 12 In Billions 10 5 '- '(5) -2 2016 2017 2018 2019 2020 2021
Slide 14: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Other Financial Measure 2019-20 2020-21 Leverage Ratio (D/E) Dividend Payout Profit from Operations Profit from Associate Contribution to Exchequer
Slide 15: Financial Performance
FINANCIAL PERFORMANCE 23,000.0 +12,874 +12,874 18,000.0 +183 +1,081 +255 -28 PKR in Millions 13,000.0 -4,249 -933 11,578 +6,867 -4,516 8,000.0 3,000.0 49 (2,000.0) •Net revenue increased by 19.7 billion (53%): • Other expenses include WPPF and WWF, significant increase •Volume Impact: Despatches inc
Slide 16: New Projects
NEW PROJECTS
Slide 17: Mianwali Project
MIANWALI PROJECT Location Capacity Pre Expansion Post Expansion Capacity Capacity tpd clinker tpa cement tpa cement Project Start Date Expected Date Plant Manufacturer of Completion
Slide 18: Solar Project
SOLAR PROJECT Entire initiative is envisaged to reduce 1 million tonnes of CO2 emissions over the life of the project, equal to plantation of approximately Farooqia and Kallar Kahar and Chakwal solar Hattar plants to be plants energized energized by Feb with combined 2022 with capacity off-grid sola
Slide 19: Solar Project: Power Mix
SOLAR PROJECT Power Mix Expected Power Mix Before Solar After Solar 17% 16% Grid Grid 45% Green/Renewable Green/Renewable Fossil 55% Fossil 28% 39%
Slide 20: Environment
ENVIRONMENT
Slide 21: Environment Conservation
ENVIRONMENT CONSERVATION As part of our clean and BCL is the leader in water BCL has made huge BCL head office building is green ambition, we have conservation after installation improvement and built new WWF certified and declared planted more than 2 lac of Air Cooled Condenser rainwater harvesting
Slide 22: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 23: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY • Spent Rs. 8 million on renovation • Free medical facilities are provided to • Spent more than Rs. 204 million on work of four government schools in thousands of patients in the local various CSR initiatives making it one Chakwal District. community. of largest corpo
Slide 24: Future Outlook
FUTURE OUTLOOK
Slide 25: Future Outlook
FUTURE OUTLOOK The economic Government’s Challenges ahead Government and relief measures particular focus on include rising input industry needs to put in place by the infrastructure costs, currency collaborate in Government to development and devaluation, finding ways to mitigate the effects housin
Slide 26: Question & Answer Session
(-) QUESTION & ANSWER SESSION
Slide 27: Appendices
=n APPENDICES
Slide 28: Sales Volume
SALES VOLUME Industry BCL Description June-21 June-20 YOY June-21 June-20 YOY Domestic-North 40,581,580 34,327,505 18% 8,191,679 7,004,137 17% Domestic- South 7,537,362 5,637,538 34% - - 0% Domestic- Total 48,118,942 39,965,043 20% 8,191,679 7,004,137 17% Exports-North 2,566,402 1,970,388 30% 471,82
Slide 29: Key Financial Data
KEY FINANCIAL DATA HISTORICAL DATA OPERATING RESULTS 2021 2020 2019 2018 2017 2016 (PKR Millions) Net turnover 56,864 37,129 53,602 52,884 51,624 45,721 Cost of sales 40,261 36,012 37,557 33,928 29,091 24,573 Gross profit 16,603 1,117 16,045 18,956 22,533 21,148 Operating profit 14,691 (26) 13,290 1
Slide 30: Key Financial Data: Significant Financial Ratios
KEY FINANCIAL DATA HISTORICAL DATA SIGNIFICANT FINANCIAL RATIOS 2021 2020 2019 2018 2017 2016 (Percentage) Gross profit ratio 29.20 3.01 29.93 35.84 43.65 46.25 Net profit ratio 20.36 0.13 18.84 24.88 25.75 25.98 Interest coverage ratio 15.51 0.76 9.84 25.94 23.46 10.37 Return on equity 19.26 0.09 1
Slide 31: Key Financial Data: Profit and Loss
KEY FINANCIAL DATA PROFIT AND LOSS Description (PKR “Millions”) 2020 2021 Revenue 37,129 56,864 Cost of sales (36,012) (40,261) Gross profit 1,117 16,603 Other income 248 255 Selling and distribution expenses (794) (611) Administrative expenses (579) (607) Other expenses (17) (950) Operating profit
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