Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — FY2021 Earnings Presentation
23 slides from Fauji Fertilizer's earnings presentation, Feb 1, 2022
Slide 1: FFC holds First Corporate Briefing for the Year 2022
FFC holds First Corporate Briefing for the Year 2022 Fauji Fertilizer Company (FFC), held its first Corporate Briefing for the year 2022, as a part of its best corporate governance practices. FFC has been recognized by Pakistan Stock Exchange (PSX) as first amongst Top 25 Companies consecutively for
Slide 2: Corporate Briefing for the year ended December 31, 2021
Corporate Briefing For the year ended December 31, 2021 Presented by: CFO February 1, 2022
Slide 3: Business Environment
Business Environment 1 2 Rising commodity prices & The Company enabled savings of surging interest / foreign precious foreign exchange for the exchange rates besides Country of around USD 1.29 successive waves of pandemic billion besides contributing posed a challenging environment towards food secu
Slide 4: Farm Economics
Farm Economics Av. Market Av. Market Expenses Net Income Expenses Net Income Yield Price Yield Price Mds/Acre Rs / Mond Rs / Acre Mds/Acre Rs / Mond Rs / Acre 2017-18 41 1,200 762 17,954 2018-19 23 3,680 2,654 23,590 2018-19 35 1,300 955 12,058 q 2019-20 21 3,700 3,038 13,912 q 2019-20 40 1,550 919
Slide 5: Sona Urea Production
Sona Urea Production 000’ MT 2021 2,507 2020 2,487 2019 2,492 2018 2,522 2017 2,513 2016 2,523 1% higher vs 2020
Slide 6: Fertilizer Offtake and Turnover
Fertilizer Offtake and Turnover 106 106 109 4,000 98 91 100 3,500 3,000 73 526 80 503 Turnover (Rs B) 212 253 253 226 2,500 Offtake (KT) 60 2,000 2,697 2,527 2,512 2,477 1,500 2,467 2,428 40 1,000 20 500 - - 2016 2017 2018 2019 2020 2021 Sales Qty - Urea Sales Qty - Imp. Fert. Turnover
Slide 7: Industry Urea Sales
Industry Urea Sales 6 year avg. 5,956 KT 000’ MT 2021 6,343 2020 6,039 2019 6,230 2018 5,810 2017 5,816 2016 5,500 5% higher vs 2020
Slide 8: Urea Market share
Urea Market share 2021 Agritech 2020 Agritech 4% 2% Fatima Fatima 13% 13% FFC FFC 42% 39% 6,343 6,039 Engro KT Engro 36% 34% KT FFBL 8% FFBL 9%
Slide 9: Urea International vs Local Prices
Urea International vs Local Prices DTP - Rs / Bag 12,000 11,000 10,750 10,000 9,000 Jan-22 8,110 9,980 8,000 Rs. / Bag 7,000 6,000 4,980 5,000 3,940 4,450 4,000 3,100 2,970 3,190 3,710 3,000 2,8302,540 2,750 3,460 3,590 2,800 2,5703,140 2,910 2,000 2,560 2,590 1,990 1,990 1,000 1,690 1,592 1,617 1,6
Slide 10: DAP International Price Trend
DAP International Price Trend $917 PKR 8,088 $680 $655 Rs / tonne USD / tonne $570 PKR 5,913 PKR 5,381 $425 $373 PKR 4,475 $298 $313 PKR 3,602 PKR 3,110 PKR 2,540 PKR 2,344 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Pak CFR USD / tonne Pak CFR (Rs / bag)
Slide 11: DAP Market share
DAP Market share 2021 2020 FFC FFC 11% 11% Pvt. Imp. Pvt. Imp. 24% 21% 1,885 FFBL Fatima 2,192 Fatima KT 42% 9% KT FFBL 7% 42% Engro Engro 16% 17%
Slide 12: Impact of prices on DAP industry
Impact of prices on DAP industry Avg Industry Year Var. Var. Rs / bag sales (KT) 2016 2,694 2,248 2017 2,490 -8% 2,344 4% 2018 3,071 23% 2,239 -4% 2019 3,362 9% 2,030 -9% 2020 3,504 4% 2,192 8% 2021 6,166 76% 1,885 -14% * Average Rs / bag: Average year end opening and closing price of Industry
Slide 13: Finance Cost and Other Income
Finance Cost and Other Income Rs M 5,992 2,292 1,874 1,927 1,375 5,054 Actual Actual Actual Actual Actual Actual 2021 2020 2021 2020 2021 2020 Finance Investment Dividend Cost Income Income
Slide 14: Key Performance Indicators
Key Performance Indicators Change % Change % Actual 2021 38,879 Actual 2021 30,470 Actual 2020 31,583 23 Actual 2020 23,735 28 Actual 2019 30,737 26 Actual 2019 22,449 36 Gross Operating Profit Profit Net EPS Profit (Rs/Share) Change % Change % Actual 2021 21,896 Actual 2021 17.21 Actual 2020 20,819
Slide 15: Net Profit
Net Profit Rs B 2021 21.9 2020 20.8 2019 17.1 2016 11.8 2015 16.8 2014 18.2
Slide 16: Quarterly Net Profitability
Quarterly Net Profitability Rs M 25,000 20,000 15,000 10,000 21,896 15,888 13,764 20,819 5,000 4,262 5,815 9,436 - 3 months 9,136 6 months 9 months 12 months 2021 2020
Slide 17: Major Receivables / (Payables)
Major Receivables / (Payables) Rs M 2021 2020 GIDC Payable Balance at the beginning (56.72) (62.64) Gain on remeassurement of GIDC - 5.93 Unwinding of remeasurement gain on GIDC (2.44) - (59.16) (56.72) Current portion (38.36) (23.95) Non-current portion (20.80) (32.77) (59.16) (56.72) Receivables S
Slide 18: Profitability and Payout
Profitability and Payout Payout Year Profit EPS DPS Ratio Rs M Rs per share % 2015 16,766 13.18 11.86 90% 2016 11,782 9.26 7.90 85% 2017 10,711 8.42 7.00 83% 2018 14,439 11.35 8.85 78% 2019 17,110 13.45 10.80 80% 2020 20,819 16.36 11.20 68% 2021 21,896 17.21 14.50 84%
Slide 19: Corporate Awards and Achievements
Corporate Awards and Achievements SAFA Best Presented ICAP / ICMAP Annual Best Report Award Corporate RCCI First Report Award RCCI First Runner-up – International Taxpayer Overall First Runner-up – Recognition MAP Award Overall Achievement Winner – Award Award Corporate Manufacturing Winner – Excell
Slide 20: FWEL, FFF, FFCEL & TEL
FWEL, FFF, FFCEL & TEL FWEL FFCEL FFF TEL I & II • 108.92 GWh of Improvement in Sales • Rs 13.5b investment electricity supplied volume, higher sales • Further investment • Rs 1.26b • Certified full O&M revnue and reduction in of Rs 377m FFC share of dividend services provider operating loss. • Expe
Slide 21: Challenges
Challenges Strategic Challenge Depleting natural gas reserves and need for alternate resources Operational Challenges 1 Rising interest rate, fuel prices and inflationary pressures 2 Discharge of GIDC liability would pressurize working capital of the Company 3 Continued delay in subsidy receivable a
Slide 22: Any questions
? ANY QUESTIONS ®
Slide 23: Thank You
THANK YOU
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