Lucky Core Industries Limited · PSX:LCI

Lucky Core Industries — ICI Pakistan — FY2022 Earnings Presentation

62 slides from Lucky Core Industries's earnings presentation, June 2022

  1. Slide 1: ICI Pakistan Limited Corporate Briefing Session FY 2021-22

    ICI Pakistan Limited Corporate Briefing Session FY 2021-22

  2. Slide 2: Table of Contents

    Table of Contents 1 ICI Pakistan Overview 2 Company Performance 3 Segmental Performance 4 Opportunities & Challenges FY 2022-23 5 NutriCo Divestment 6 Future Growth Projects 7 Rebranding for a Stronger Future

  3. Slide 3: ICI Pakistan Overview FY 2021-22

    ICI Pakistan Overview FY 2021-22

  4. Slide 4: YBG: Unleashing the True Potential of ICI Pakistan Limited

    YBG: Unleashing the True Potential of ICI Pakistan Limited ICI Pakistan’s Presence in Pakistan ICI Pakistan has over 75 years of operations in Pakistan and predates to the formation of the Country. Formerly part of British industrial giant ICI PLC UK which was acquired by Akzo Nobel N.V in 2008, a F

  5. Slide 5: Core Values of ICI Pakistan Limited

    Core Values of ICI Pakistan Limited 1. Customer Centricity 2. Integrity and Responsibility 3. Innovation 4. Passion for People 5. Delivering Enduring Value 5

  6. Slide 6: HSE&S | Our Licence to Operate

    HSE&S | Our Licence to Operate Achievements Awards ▪ Soda Ash business awarded with Zero 03 • +39 International Safety Award by British Safety Council for HSE Management System Million Man Hours without Injury Occupational Illnesses Reportable • CSR Award in the Community Incidents Development & Ser

  7. Slide 7: Sustainability | Going Green – Key Achievements

    Sustainability | Going Green – Key Achievements Awards • Sustainability report was awarded the Best Sustainability Report by ICAP & ICMA Pakistan. Reducing our Carbon Footprint • 21 projects were completed having the potential to reduce 31,000 tonnes of Carbon Dioxide. • 1,734 kW solar energy projec

  8. Slide 8: ICI Pakistan – An Integral Part of the Socio-Economic Fabric

    ICI Pakistan – An Integral Part of the Socio-Economic Fabric INDUSTRIES THAT • Diversified businesses with products catering to the needs of multiple ICI PAKISTAN CATERS TO industry segments. • Strong reputation for quality and customer service. Textiles Paints Appliances Construction Automobile Foo

  9. Slide 9: Company Performance FY 2021-22

    Company Performance FY 2021-22

  10. Slide 10: FY 2021-22 – At a glance

    FY 2021-22 – At a glance Record NSI, EBIT & PAT delivery PKR 100 billion Consolidated Sales Downstream Integration into Float Glass Increase in ICI Standalone Sales (39%), EBIT manufacturing - JV with Tariq Glass (40%) and PAT* (24%) from SPLY. GCA & Pharma crossed PKR 1 billion EBIT 75 KTPA Soda As

  11. Slide 11: Key Highlights – Year Ended June 30, 2022 (Unconsolidated)

    Key Highlights – For the Year Ended June 30, 2022 (Unconsolidated) Net Sales Income Gross Profit Operating Profit 39% 30% 40% Higher vs SPLY Higher vs SPLY Higher vs SPLY June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 86,972m 62,618m 18,619m 14,348m 11,753m 8,399

  12. Slide 12: Segmental Performance vs. SPLY – Unconsolidated

    Segmental Performance vs. SPLY– Unconsolidated Soda Ash Polyester Pharma Chemicals Animal Health ICI Pakistan NSI Mln 25,064 50% 36,676 51% 8,886 14% 10,807 24% 5,617 10% 86,972 39% Vs. 16,709 Vs. 24,297 Vs. 7,814 Vs. 8,699 Vs. 5,114 Vs. 62,618 EBIT Mln 4,476 27% 3,807 40% 1,247 49% 1,462 55% 761 10

  13. Slide 13: Key Financial Highlights – Year ended June 30, 2022 (Consolidated)

    Key Financial Highlights – For the Year ended June 30, 2022 (Consolidated) Net Sales Income Gross Profit Operating Profit 56% 51% 72% Higher vs SPLY Higher vs SPLY Higher vs SPLY June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 100,867m 64,766m 21,954m 14,582m 13,8

  14. Slide 14: Segmental Performance vs. SPLY – Consolidated

    Segmental Performance vs. SPLY– Consolidated Soda Ash PEPG Pharma Chemicals Animal Health NutriCo ICI Pakistan NSI Mln 25,064 50% 38,362 50% 8,886 14% 10,807 24% 5,617 10% 13,895 100,867 56% Vs. 16,709 Vs. 25,529 Vs. 7,814 Vs. 8,699 Vs. 5,114 Vs. 2,148 Vs. 64,766 EBIT Mln 4,476 27% 3,961 34% 1,247 4

  15. Slide 15: Journey Since YBG Acquisition – PAT (Standalone)

    Journey Since YBG Acquisition – PAT (Standalone) 6,249 5,959 3,296 3,060 3,096 2,843 2,126 2,305 1,702 974 688 CY 2012 2013 (6m) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Shareholders Return since YBG Acquisition IRR on Investment PSX 100 Index KMI 30 Index 19.0% 11.6%

  16. Slide 16: Profitability and Dividend Payout History

    Profitability and Dividend Payout History 67.7 64.5 40.0 35.7 33.1 33.5 35.0 30.8 23.0 25.0 18.4 18.0 16.5 16.0 15.5 11.5 9.0 8.0 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 EPS Dividend/share

  17. Slide 17: Segmental Performance FY 2021-22

    Segmental Performance FY 2021-22

  18. Slide 18: State-of-the-Art Manufacturing Plants

    State-of-the-Art Manufacturing Plants Soda Ash Polyester Pharmaceuticals Animal Health Chemicals & Agri Sciences NutriCo Morinaga

  19. Slide 19: Soda Ash

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  20. Slide 20: Soda Ash Business – A mouth of the mine manufacturing facility

    Soda Ash Business – A mouth of the mine manufacturing facility Current production capacity of 500,000 TPA, to be expanded by Ideal location with access to 60,000 TPA (Total capacity major raw materials 560,000 TPA) Close proximity to customer Self-Sufficient in energy needs protects from import risk

  21. Slide 21: ICI Pakistan Soda Ash Exports

    ICI Pakistan Soda Ash Exports 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 Export Country (MT) (MT) (MT) (MT) (MT) (MT) India - - - 20,040 23,960 23,720 Afghanistan 2,358 2,808 1,437 743 2,466 2,031 UAE 1,591 1,709 6,125 692 - - Bangladesh 41,136 18,396 8,707 7,676 688 - Sri Lanka 8,100 8,500 2,5

  22. Slide 22: Expansion Since YBG Acquisition

    Expansion Since YBG Acquisition 350,000 TPA Approved Expansion In Expansion Completed 1 500,000 TPA Process 75,000 TPA * 75,000 TPA PKR 5.5bn PKR 3.6bn 60,000 TPA & CFB-5 FY 2012 2018-19 2021-22 2 PKR 7bn CFB-5 60,000 TPA July’22 Dec’22 FY 2022 560,000 TPA Conversion of energy mix CFB-1&2 PKR 2.5bn

  23. Slide 23: Soda Ash – Financial Summary

    Soda Ash – Financial Summary Net Turnover Operating Result Key Highlights: ❖ Sales volume: Description June'22 June'21 Delta 25,064 Domestic Volumes tons 399,354 364,751 9% 4,476 3,526 Export Volumes tons 61,388 32,812 87% 16,709 Total Volumes tons 460,742 397,563 16% ❖ Exports volume massive growth

  24. Slide 24: Soda Ash – Historical Performance

    Historical Performance 25.06 4.48 Revenue 16.54 16.71 15.65 3.63 3.53 EBIT 3.28 12.55 11.04 2.7 2.7 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 6.05 5.32 5.12 4.93 EBITDA 4.1 4.2 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 *Amounts in PKR billi

  25. Slide 25: Polyester

    Polyester 25

  26. Slide 26: Total production reached 139,099 tons in FY'22

    Pioneer In Polyester Manufacturing Excellent Reputation for Customer in Pakistan and 2nd Largest Relationships, Product Quality and Domestic Player Technical Services Strong Technology Partner (Invista – a Global Leader in the CP plant operating at full capacity i.e. 122,250 tons per annum Sector) S

  27. Slide 27: Polyester Fibre – Back Bone of Pakistan's Economy

    Polyester Fibre – Back Bone of Pakistan’s Economy Pakistan Textile Exports (Amount in Bn $) 2021-22 19.32 2020-21 15.41 • Textile sector has approx. 61% share in total exports of 2019-20 12.5 Pakistan. 2018-19 13.3 • Strong government support to drive exports through export refinancing scheme and co

  28. Slide 28: Sustainability – Recycled PSF from Flakes

    Sustainability Recycled PSF from Flakes • Successfully commissioned a 48 TPD production unit of 100% PET Recycled chip for the manufacture of Recycled Polyester Stable Fibre in the last quarter of 2022. • Production capacity is 16,320 TPA. • This expansion is in-line with the needs of customers and

  29. Slide 29: Polyester & PowerGen – Financial Summary

    Polyester & PowerGen – Financial Summary Net Turnover Operating Result Key Highlights: ❖ Production and sales of 139,099 tons and 141,040 tons, up by 1% and 4% 38,362 respectively from SPLY. 3,961 25,529 2,945 ❖ Significant increase in Net turnover is attributable to higher selling prices backed by

  30. Slide 30: Polyester – Historical Performance

    Historical Performance 38.36 3.96 Revenue 25.53 EBIT 24.38 2.95 20.26 18.70 14.8 0.76 0.13 0.18 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (0.4) 4.58 EBITDA 3.58 1.49 0.96 0.98 0.5 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 *Amounts in PKR bi

  31. Slide 31: Pharmaceuticals

    Pharmaceuticals 31

  32. Slide 32: Presence in Multiple Therapeutic Areas

    Presence in Multiple Therapeutic Areas Cardio Care Cardio SP. Oncology Metabolic Central Pulmo & Nervous Surgi System Pharma Pain & Gastro Portfolio Critical Care Pediatric Gynaecology Nutraceutical Carbapenem 32

  33. Slide 33: Post Acquisition - Manufacturing Footprint

    Post Acquisition - Manufacturing Footprint 3 Manufacturing Sites 1 Nutraceuticals Unit Veroclav Hattar Plant 2 Pharmaceuticals Units Etipro GMP Certified Moximax Capsule 40mg ISO Certified 9001:2015 4 New Brands and 3 Line Hawkes bay Plant extensions GMP Certified Xelna Launched in FY Etipro Sachet

  34. Slide 34: Capability to Manufacture Multiple Dosage Forms

    Capability to Manufacture Multiple Dosage Forms Pharmaceuticals Business Hattar Plant Hawksbay Plant Nutra Plant Ampoule Solid (Tablet) Tablet Carbapenem Liquid Syrup Ceph Sachet General Softgel Penicillin Psychotropic Steroid Sachet 34

  35. Slide 35: Pharmaceuticals – Financial Summary

    Pharmaceuticals – Financial Summary Net Turnover Operating Result Key Highlights: ❖ Improvement in profitability is attributable to newly launched 1,247 products having higher margins. 8,886 7,814 836 Further increased volumes resulted in manufacturing efficiencies in the form of higher absorption o

  36. Slide 36: Pharmaceuticals – Historical Performance

    Historical Performance 1.25 8.89 Revenue 7.81 7.38 6.88 0.84 EBIT 0.72 0.74 5.7 4.3 0.55 0.19 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 1.40 0.98 EBITDA 0.91 0.8 0.6 0.30 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 *Amounts in PKR billion 36

  37. Slide 37: Animal Health

    Animal Health 37

  38. Slide 38: Animal Health Business Footprint

    Animal Health Business Footprint Technical Excellence and Quality Brand Equity • Top-of-mind recall. • Trained and technically proficient salesforce. • One-stop solution provider. • Frequent educational seminars for vets & KOLs hosted. • Our Brand umbrella for Branded Generics. Manufacturing Experti

  39. Slide 39: Animal Health – Leveraging on Presence to Achieve Scale

    Animal Health – Leveraging on Presence to Achieve Scale • Strong presence in one of most essential & important industries • Large animal population (low productivity) + strong Government focus and support • Focus on the largest segments providing profitable scale opportunities • Further strengthenin

  40. Slide 40: Animal Health – Financial Summary

    Animal Health – Financial Summary Net Turnover Operating Result Key Highlights: ❖ Livestock and poultry divisions saw growth of 1% and 37%, respectively, supported by record silage production 5,114 5,617 761 with volumetric growth of 23%. 380 ❖ Aforesaid volumetric growth in poultry segment is also

  41. Slide 41: Strategic International Partnerships

    Strategic International Partnerships Partnerships with leading global animal health companies to bring global advancements to Pakistan. 41

  42. Slide 42: Animal Health – Historical Performance

    Historical Performance 5.62 0.76 Revenue 5.11 0.7 4.9 EBIT 4.3 3.73 3.91 0.5 0.38 0.3 0.24 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Recovering the impact of EBITDA 0.83 0.7 Somatech (rBST), PKR 1.6Bn revenues, PKR 600m 0.5 EBITDA. 0.45 0.3 0.30

  43. Slide 43: Chemicals & Agri Sciences

    Chemicals & Agri Sciences 43

  44. Slide 44: 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

  45. Slide 45: Agri Sciences – Creating an Impact Across the Agri Chain

    Agri Sciences – Creating an 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 v

  46. Slide 46: Portfolio Analysis

    Portfolio Analysis Agri Sciences Seeds Agrochemicals Sunflower Insecticides Co r n Herbicides Vegetable Seeds Fungicides Others Crop Nutrients 46

  47. Slide 47: Key Partners

    ICI PAKISTAN LTD. Key Partners HUNTSMAN j/) OVY n G WANHUA MB conse Enriching lives through innovation A oueer A VENATOR (D) UP L COGS DAIREN CHEMICAL CoRP. Diversey Gevonns: MOMENTIVE <O> S2tEMMRosma Qe 47

  48. Slide 48: Chemicals & Agri Sciences – Financial Summary

    Chemicals & Agri Sciences – Financial Summary Net Turnover Operating Result Key Highlights: ❖ Chemicals Division: Business benefited from the improved demand scenario amid consistent growth in 10,807 1,462 the manufacturing industry. 8,699 942 ❖ Agri Division: Favorable weather conditions during the

  49. Slide 49: Chemicals & Agri Sciences – Historical Performance

    Historical Performance 1.46 10.81 Revenue 8.70 7.83 8.11 8.02 EBIT 7.30 0.94 0.77 0.80 0.71 0.29 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 1.57 EBITDA 1.05 0.92 0.8 0.77 0.34 *Amounts in PKR billion 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

  50. Slide 50: NutriCo Morinaga Infant Nutrition Business

    NutriCo MorinagaInfant Nutrition Business 50

  51. Slide 51: Infant/Growing-up Nutrition Business

    Infant/Growing-up Nutrition Business ICI Pakistan Limited NutriCo Pakistan Private Limited (40% Holding) Further Investment of Trading of Locally 11% Imported Manufactured (PKR 770 million) Portfolio Portfolio NutriCo Morinaga NutriCo Pakistan Private Limited Private Limited (51% Holding) (51% Holdi

  52. Slide 52: Merged NutriCo Performance

    Merged NutriCo Performance 13.90 1.92 Revenue EBIT 1.16 12.56 2020-21 2021-22 2020-21 2021-22 2.28 EBITDA 1.52 2020-21 2021-22 *Amounts in PKR billion 52

  53. Slide 53: Opportunities & Challenges FY 2022-23

    Opportunities & Challenges FY 2022-23 53

  54. Slide 54: Opportunities & Challenges – FY 2022-23

    Opportunities & Challenges – FY 2022-23 Opportunities Challenges Incremental Vol. in Soda Ash due to 75KTPA (Jun 22) Deteriorating Economic conditions & 60KTPA (Dec 22) Expansion locally/globally R-PET commissioning in June’22, in line with evolving customers needs and commitment to Increase in ener

  55. Slide 55: NutriCo Divestment

    NutriCo Divestment 55

  56. Slide 56: Divestment of 26.5% Shareholding in NutriCo Morinaga

    Divestment of 26.5% Shareholding in NutriCo Morinaga Transaction Shares Price Value Gain 26.5% USD 2.07 45.08 7.6 21.8 Mln shares Per share Mln $ Bln PKR Rationale / benefits Cash Generation Gain Rapid Growth Enhanced Future Value Immediate Reduction in • Approximately PKR 7.6 bln • Ownership of Bra

  57. Slide 57: Future Growth Projects

    Future Growth Projects Soda Ash 60 KTPA in Dec’22 Production capacity is being expanded by 60 KTPA in addition to 75 KTPA commissioned in Jun’22 Joint-Venture Float Glass • Setting up of state-of-the-art, greenfield facility for manufacturing of float glass • Production capacity of up-to 1,000 TPD t

  58. Slide 58: Expansion Projects Since YBG Acquisition

    Expansion Projects Since YBG Acquisition ICI PEPG SA PH GCA AH Coal fired heaters Coal fired boilers 1&2 Nutraceutical Seeds Processing Plant Manufacturing facility Launch of new corporate PKR 0.8 bn PKR 2.5 bn Manufacturing facility PKR 9 m PKR 15 m identity Aug 2013 June 2014 Dec 2013 PKR 61 m Nov

  59. Slide 59: Strong Credit Rating for ICI Pakistan

    Strong Credit Rating for ICI Pakistan VIS Credit Rating Company Limited has reaffirmed entity ratings of ICI Pakistan June 30, 2022 59

  60. Slide 60: Rebranding for a stronger future

    Rebranding for a stronger future: What the name means Leveraging Collective Strengths Our Reason for Existence Our holding Company, Lucky Cement Limited, is a The Company’s portfolio spans a broad range of leading, progressive, and diversified Pakistani products that are at the ‘core’ of almost ever

  61. Slide 61: ICI Pakistan Limited to Lucky Core Industries Limited

    ICI Pakistan Limited to Lucky Core Industries Limited 61

  62. Slide 62: Q&A Session

    €) ICI PAKISTAN LTD. Q&A Session

ICI Pakistan — FY2022 Earnings Presentation on 6ix