Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — FY2019 Earnings Presentation
21 slides from Fauji Fertilizer's earnings presentation, Mar 2, 2020
Slide 1: FFC holds Corporate Briefing for year ended December 31, 2019
FFC holds Corporate Briefing for year ended December 31, 2019 Fauji Fertilizer Company (FFC), held Annual Corporate Briefing for the year ended 31st December 2019, as a part of its best corporate governance practices.
Slide 2: FFC recognized by PSX as first among top 25 companies
FFC has been recognized by Pakistan Stock Exchange (PSX) as first amongst top 25 companies consecutively for 9 years attributed to its Compliance of Code of Corporate Governance, Company Performance and efficient management which has consistently surpassed established corporate governance standards
Slide 3: Corporate Briefing
Corporate Briefing For the year ended December 31, 2019 March 2, 2020
Slide 4: Review 2019, Projects, Future Outlook, Q&A
FAUJI FERTILIZER COMPANY LIMITED Projects Q&A Session Review Future Outlook 2019 / Challenges 2
Slide 5: 2019 Review
AAG iew 2019 Rev
Slide 6: Business Environment – 2019
Business Environment – 2019 The year commenced with industry Freight cost increased due to implementation urea inventory of 170 thousand of Axle Weight Regime. tonnes - 40% lower compared to 2018. DAP inventory of 570 thousand tonnes carried into 2019 - the Continued challenges of delays in
Slide 7: Reduction in GIDC levy
Reduction in GIDC GIDC levy reduced from Although the Company the month of January 2020 had been absorbing major by Rs.400/bag. part of this levy over the years, the Company reduced urea selling prices by Rs. 375/bag for the benefit of the farming This reduction has community. no impact on GIDC levi
Slide 8: FFC 2018 vs 2019
FFC 2018 vs 2019 2018 650 2,492 674 2019 Savings through import Urea Production (KT) Substitution (US $ M) 3 28 14,439 17,110 Urea Inventory(KT) Net Profit (Rs M) 3,030 2,720 11.35 13.45 EPS (Rs / Share) Total Fertilizer Sales (KT) 108,365 105,783 33,383 35,567 Revenue–Including Subsidy (Rs.M) Equit
Slide 9: Sona Urea Production (KT)
Sona Urea Production (KT) 2019 2,492 2018 2,522 2017 2,513 2016 2,523 2015 2,469 2014 2,403 2013 2,408 2,000 2,200 2,400 2,600 7
Slide 10: Offtake & Revenue – 2019
Offtake & Revenue –2019 4,000 120 108 106 97 100 81 86 3,000 81 74 80 526 503 253 80 '000' tonnes Rs in billion 140 181 212 2,000 60 40 2,409 2,371 2,408 2,426 2,697 2,527 2,467 1,000 20 - - 2013 2014 2015 2016 2017 2018 2019 Sales Qty - Urea Sales Qty - Imported Fert Revenue (Incl Subs) 8
Slide 11: Industry Urea Sales (KT)
Industry Urea Sales (KT) 2019 6,230 2018 5,810 2017 5,816 2016 5,500 2015 5,585 2014 5,618 2013 5,903 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 - Domestic Sales Only 9
Slide 12: Domestic Urea Market Share
FAUJI FERTILIZER COMPANY LIMITED Domestic Urea Market Share FFC marketed 2,467 KT of Sona Urea (Prilled) and captured a market share of 40%. 2% 8% 11% 12% 40% 43% 34% 32% 8% 9% 10% FFC FFBL Engro Fatima Others 2019 2018 10
Slide 13: Urea Market Inventory Share
FAUJI FERTILIZER COMPANY LIMITED Urea Market Inventory Share 9% 50% 2% 5% 63% 14% 14% 43% 2019 – 170 KT 2018 – 285 KT FFC Engro Fatima Others 11
Slide 14: International Vs Local Price
International Vs Local Price 4,000 3,500 3,000 2,500 Rs per bag 1,950 1,990 2,000 1,815 2,020 1,500 1,670 1,700 1,615 1,400 1,400 1,000 500 - May-14 Dec-14 Jan-12 Sep-16 Jan-19 Apr-17 Mar-13 Oct-13 Jul-15 Feb-16 Jun-18 Mar-20 Nov-17 Aug-12 Aug-19 International Price Domestic Price 12
Slide 15: Corporate Awards
Corporate Awards 1st position in “Overall Winner of Winner” ICAP First position in the ICAP/ICMAP the “PSX Top “Manufacturing “Best 25 Companies” /ICMAP Best Corporate Report Sector” of SAFA Sustainability for 9 Awards - 2018 Best Annual Report Award” consecutive Report Awards for 2018 in the Large
Slide 16: New Projects
NEW PROJECTS
Slide 17: Thar Energy Limited
Thar Energy Limited Government of Pakistan has Thar Energy Limited notified the (TEL), an associated achievement of company of FFC, is Financial Closing a CPEC Project, by TEL on 30th currently under January, 2020. construction at Thar Coal Block II. Commercial operation of the project is expected i
Slide 18: Future Outlook/Challenges
APEC Future Outlook/Challenges
Slide 19: Future Outlook / Challenges
Future Outlook / Challenges Poor farm economics due to Unfavorable settlement of sub- lower crop yield , reduction in 1 cultivable land and other 5 judice GIDC case may lead to economic factors substantial finance cost Depleting gas reserves Minimum Tax - impacting 2 need alternate raw material 6 ma
Slide 20: Q & A Session
Q & A SESSION
Slide 21: Thank you
ZG Thank you
Fauji Fertilizer Company — FY2019 Earnings Presentation on 6ix