Slide 1: Analyst Briefing FY 2018
ANALYST BRIEFING FY 2018
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Urea sales for FY 2018 clocked in at 5,797 KT, almost in line with LY Urea Industry EFERT FY 2018 sales were 1,986 KT, up 14% vs 1,739 KT LY 2017, mainly due (KT) FY 2018 FY 2017 Change Opening to better avails supported by improvement in dealer’s spread 268 1,043 Inv. Pr
Slide 3: Comparison of Local vs Int Price
COMPARISON OF LOCAL VS INT PRICE Despite significant delta vs. international Urea prices, the Fertilizer industry continues to transfer benefit to the farmer, which translates to PKR 20 Billion for the year, over and above the feed gas price subsidy Subsidy share since 2010 3,000 2,770 2,932 2,555 2
Slide 4: Urea Key Updates
UREA KEY UPDATES Fertilizer industry continues to face challenges in the form of prior subsidy despite of the fact that the subsidy given on fertilizers was timely passed on to farmers whereas the government is yet to pay back the subsidy (Industry - PKR 20 B, Efert PKR 6.5 B) Subsidy ageing PKR B
Slide 5: Urea: GIDC Pass Through Impact
UREA: GIDC PASS THROUGH IMPACT The government started levying GIDC on Feed and Fuel gas in Dec 2011. To date, pass through of GIDC to farmers has been as follows: GIDC Impact PKR/bag Feed GIDC (PKR 300/MMBTU * 22.4 Feed Index) 342 Fuel GIDC (PKR 150/MMBTU * 5.6 Feed Index) 43 Total GIDC Impact per
Slide 6: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT FY 2018 industry sales stood at 2,224 KT vs 2,336 KT LY 2017 (5% decline) DAP Prices (CFR) USD/t 600 Lower industry offtake was mainly due to escalating DAP international 481 494 492 488 477 500 430 426 429 434 427 prices and rupee devaluation 380 361 366 358 399 40
Slide 7: Speciality Fertilizer Business
SPECIALITY FERTILIZER BUSINESS Major products of SFB include Zarkhez (Potash based product), NP and Potash Prices (CFR) USD/t other specialized products 350 300 315 310 301 293 308 286 285 300 270 253 246 255 Total sales for SFB stood at 210 KT vs FY 2017 sales of 147 KT an increase 250 234 225
Slide 8: Business Highlights
BUSINESS HIGHLIGHTS For FY 2018, EFERT’s Profit After Tax (PAT) stood at PKR PKR M FY 2018 FY 2017 17,414 M vs FY 2017 PAT of PKR 11,156 M Total Revenue 109,197 77,129 Higher profitability was led by Gross Profit 35,316 23,219 Higher urea and DAP offtake; Finance Cost (2,071) (2,648) Higher
Slide 9: Other Key Updates
OTHER KEY UPDATES The industry wants to continue protecting the farmer by selling urea at an affordable rate. However, this is only possible with the support of Government by creating an enabling environment The current Government vision to “Provide smart subsidy for agricultural inputs to 3 mil
Slide 10: CSR Snapshot
CSR SNAPSHOT SCHOOL ADOPTION PROJECT HUMQADAM SAHARA CLINIC PAVE PROGRAM Interest free loans 13 schools 9,528 patients treated Seed value chain of rice, wheat and vegetables 4,425 total beneficiaries engaged 205 farmers 1,424 students 8,441 vaccinated Less 12.5 acres of land First girls school 143 H
Slide 11: Thank You Q & A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing FYFY2018 2016
Slide 12: Dividend Profile
DIIVIDEND PROFILE 2018 2017 2016 Efert – EPS 13.04 8.36 6.98 FFC – EPS 11.35 8.42 9.26 Efert – DPS 11.00 (84%) 8.50 (102%) 7.00 (100%) FFC – DPS 8.85 (78%) 7.00 (83%) 7.90 (85%) EPS 15 • Efert EPS grew by 86% vs. FFCs EPS of 23% 10 5 2016 2017 2018 Efert – EPS FFC – EPS Security Analyst Briefing FY