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Slide 2: Corporate Briefing for the Year ended June 30, 2019
Corporate Briefing for the Year ended June 30, 2019 2
Slide 3: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT This presentation has been prepared by Security Papers Limited (SPL) solely for information purposes. No representation or warranty express or implied is made thereto, and no
Slide 4: Sequence of Presentation
Sequence of Presentation Company Profile Strategic / Operational Development Financial Details Question & Answers 4
Slide 5: Company Profile
COMPANY PROFILE 5
Slide 6: The sole manufacturer of security papers in Pakistan
The sole manufacturer of security papers (substrate) for Banknote and Other Security Documents in Pakistan 6
Slide 7: Vision Statement
VISION STATEMENT “TO BE A NATIONALLY AND INTERNATIONALLY RECOGNIZED AND ACCEPTED SECURITY PAPER PRODUCING ORGANIZATION, PROVIDING HIGHEST QUALITY PAPER TO OUR CUSTOMERS, BOTH IN PAKISTAN AND ABROAD”. 7
Slide 8: Mission Statement
MISSION STATEMENT “OUR MISSION IS TO EXCEED THE EXPECTATION OF OUR CUSTOMERS IN PRODUCING, WITH SECURITY AND EFFICIENCY, HIGHEST QUALITY PAPER PRODUCTS, EMPLOYING INTERNATIONAL BEST PRACTICES AND APPLYING AN INTEGRATED APPROACH TO PRODUCT RESEARCH AND DEVELOPMENT, MANUFACTURING TECHNOLOGY, OPERATION
Slide 9: Historical Milestones
Historical Milestones • Incorporated as Private Limited Company. 1965 • Contract signed with Mills‐Paugh, U.K. for the supply of Paper Machine‐1 (PM‐1) 1966 • Listed on the Karachi Stock Exchange (now Pakistan Stock Exchange ‐ PSX) 1967 • Started commercial production 1969 • Contract signed with VOI
Slide 10: Historical Milestones
Historical Milestones • New Paper Machine commissioned and inaugurated by Prime Minister of Pakistan 2004 • Reverse Osmosis (RO) Plant installed and commissioned 2006 • Captive Power Plant installed 2009 • Modification and Upgradation of Rewinder and Sheeter Machines 2011 • New Mould Cover manufactu
Slide 11: Historical Milestones
Historical Milestones • Automated Cotton Comber Dry Cleaning Plant installed 2014 • A new Thread Unwinding System installed 2015 • Paper for National Passport developed and produced 2016 • Production capacity enhanced from 2500 tons to 3500 tons per annum through 2018 expansion of Pulp making Plant
Slide 12: Our Products
OUR PRODUCTS Banknote Paper Non Judicial Stamp Prize Bond Paper (all denominations) Paper Educational E – Stamp Paper Certificates and Parchment Paper (Govt. of Punjab) Degree Paper CBS – 1 Passport Paper NADRA CRC Paper (Cheque Paper) 12
Slide 13: Our Customers
OUR CUSTOMERS PAKISTAN SECURITY NATIONAL SECURITY GOVERNMENT OF PRINTING CORPORATION PRINTING COMPANY PUNJAB UNIVERSITIES, BOARDS NADRA AND OTHER INSTITUTIONS 13
Slide 14: Shareholding Pattern
Shareholding Pattern • PSPC : 40% • FOREIGN COMPANIES : 20% • INSTITUTIONS : 32% • GENERAL PUBLIC : 8% 14
Slide 15: Board of Directors
Board of Directors * BOARD OF DIRECTORS Non‐Executive Directors Chairman Mr. Muhammad Haroon Rasheed Directors Sheikh Mohammad Aijaz Akhtar Dr. Abolghassem Jamshidi – Foreign Director Mr. Memet Ozyavuz – Foreign Director Mr. Jamal Nasim‐Independent Director Mr. Muhammad Ayub‐Independent Director Sar
Slide 16: Board Committees
Board Committees * • Audit Committee • Human Resource and Remuneration Committee • Investment and Risk Management Committee • Project/Strategic Committee • Procurement Committee 16
Slide 17: Management Committees
Management Committees * • Executive Committee • Corporate Social Responsibility (CSR) Committee • IT Steering Committee • Health & Safety Committee • Workers’ Welfare Fund Committee • Workers’ Profit Participation Fund (WPPF) Committee • Prevention of Sexual Harassment Committee • Whistle Blowing Co
Slide 18: Corporate Awards
Corporate Awards Top Companies Award: • Won Top 25 Companies Award for the years 2000 to 2007 and 2009 to 2016. Corporate Excellence Award: • Won 34th Corporate Excellence Award of the Management Association of Pakistan (MAP); • Holds 24th to 29th Awards (6 times in a row) as well as 31st to 33rd (3
Slide 19: Corporate Awards
Corporate Awards Fire & Safety Award: • Won Fire & Safety Award 2011, 2012, and 2013 for 3 consecutive years – awarded by Fire Protection Association of Pakistan and National Forum for Environmental & Health. Environmental Excellence Award: • Received the 15th Annual Environmental Excellence Award 2
Slide 20: ISO Certifications
ISO Certifications Occupational Health & Safety Management Assessment Series (OHSAS 18001:2007) | 1st Mar’17 until 15th Feb’2020. Quality Management System (ISO 9001:2015) | 31st May’18 until 2nd Apr’21. Environmental Management System (ISO 14001:2015) | 31st May’18 until 25th Apr’21. Effort
Slide 21: Operational Performance
OPERATIONAL PERFORMANCE 21
Slide 22: Business Model
Business Model CAPEX for capacity expansion Product CAPEX for Plant Diversification Efficiency Benefits to Stakeholders Improved Reinvestment into profitability and Business margins 22
Slide 23: Sales Performance
Sales Performance Revenue ‐ PKR ‐ '000 4,002 3,467 2,842 15.43% 2,584 2,141 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 23
Slide 24: Sales Volume
Sales Volume Paper sold (tons) 4,000 3,726 3,500 3,303 3,000 2,858 12.80% 2,658 2,500 2,236 2,000 1,500 1,000 500 ‐ 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 24
Slide 25: Projects under progress
Projects under progress SPL Water Projects • RO Plant: PKR 40 Million • Waste Water Recycling Plant : PKR 95 Million Chiller & Cooling Towers: PKR 60 Million CAPTIVE POWER PLANT Gas Generators: PKR 95 Million 25
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS 26
Slide 27: Key Performance Indicators for 5 Years
KEY PERFORMANCE INDICATORS FOR 5 YEARS JULY ‐ JUNE PARTICULARS 2018 (Re‐ 2019 2017 2016 2015 stated) PAPER SOLD – TONS 3726 3303 2858 2658 2236 SALES – RS. ‘000 4,001,591 3,466,918 2,842,085 2,583,566 2,140,952 GROSS PROFIT – RS. ‘000 1,585,236 1,293,223 1,088,406 876,620 675,717 PROFIT AFTER TAXATI
Slide 28: Financial Highlights FY2018-2019
FINANCIAL HIGHLIGHTS FY2018 ‐ 2019 1. SALES INCREASED BY 15.4% TO RS. 4,002 MILLION AGAINST RS. 3,467 MILLION LAST YEAR 2. GROSS PROFIT INCREASED BY 22.6% TO RS. 1,585 MILLION AGAINST RS. 1,293 LAST YEAR. 3. PROFIT AFTER TAX ACHIEVED RS.772 MN AS AGAINST RS.570 MN LAST YEAR ‐ REFLECTING AN INCREASE
Slide 29: Ratios Analysis
RATIOS ANALYSIS JULY – JUNE PARTICULARS 2019 2018 2017 2016 2015 Re‐Stated PROFITABILITY RATIOS GROSS PROFIT TO SALES % 40% 37% 38% 34% 32% NET PROFIT TO SALES % 19% 16% 33% 24% 24% RETURN ON EQUITY % 16% 12% 20% 15% 13% RETURN ON CAPITAL EMPLOYED 16% 12% 20% 15% 12% 29
Slide 30: Ratios Analysis
RATIOS ANALYSIS JULY – JUNE PARTICULARS 2018 2019 2017 2016 2015 Re‐Stated LIQUIDITY RATIOS CURRENT RATIO 3.37:1 3.94:1 3.89:1 3.80:1 2.32:1 QUICK RATIO 2.83:1 3.37:1 3.08:1 2.99:1 1.77:1 DEBT MANAGEMENT DEBT EQUITY RATIO 0.00:1 0.00:1 0.00:1 0.00:1 0.01:1 MARKET RATIO EARNING PER SHARE – (RS.) 13.0
Slide 31: Ratios Analysis
RATIOS ANALYSIS JULY – JUNE PARTICULARS 2018 2019 2017 2016 2015 Re‐Stated ASSET MANAGEMENT TOTAL ASSETS TURNOVER % 0.66:1 0.59:1 0.50:1 0.49:1 0.42:1 INVENTORY TURN OVER RATIO‐ 57 79 108 88 84 DAYS DEBTORS TURNOVER RATIO‐ 60 57 52 36 40 DAYS CREDITOR TURNOVER RATIO – 22 35 31 35 50 DAYS 31
Slide 32: Future Outlook
FUTURE OUTLOOK 32
Slide 33: Future Outlook / Challenges
FUTURE OUTLOOK / CHALLENGES • SPL is operating at its maximum capacity while the demand for our products is steadily growing. • To maintain growth, we are in a process of overcoming our production capacity constraints through a series of programs for de bottlenecking and efficiency improvement. Some
Slide 34: Question & Answers
QUESTION & ANSWERS 34