Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — 9M 2024 Earnings Presentation
20 slides from Fauji Fertilizer's earnings presentation, Nov 6, 2024
Slide 1: Cover letter to Pakistan Stock Exchange
BEG CORPORATE AFFAIRS DEPARTMENT Ref No. 6.12-KSE/S/FFC November 05, 2024 To : Ms. Raeda Latif GM - Mktg & BD Pakistan Stock Exchange (Guarantee) Limited Stock Exchange Building Stock Exchange Road KARACHI Fax: 021-111-573-329 Subject: Third Corporate Briefing for Year 2024 Presentation of FFC Third
Slide 2: Fauji Fertilizer Company Limited Corporate Briefing
Fauji Fertilizer Company Limited Corporate Briefing For the period ended September 30, 2024 Presented by: CFO November 6, 2024
Slide 3: Agenda
1 Highlights & Challenges Financial Overview 2 (FFC & Group) 3 Fertilizer Industry Snapshot 4 FFBL Amalgamation 5 Agritech Acquisition 6 Questions & Answers Session
Slide 4: Economic Highlights and Fertilizer Industry
Economic Highlights and Fertilizer Industry GDP growth projected to rebound to 3-4% over the next few years Agriculture Growth: 6.25% FY24 Reduction in policy rate Inflation easing up Highest in last 19 years 450 bps reduction in 6.9% in Sept 2024 vs (mainly due to wheat, rice & Cotton) Policy Rate
Slide 5: Business Highlights & Challenges
Business Highlights & Challenges Benchmark Turnover, Other income and PAT USD 1 Billion Dollar Amalgamation of Market Cap Achieved after PAT 6 years PKR 42.6 Bn FFBL and Acquisition of Agritech Ltd Benefit passed on to 70 Sona Centers operational farmer USD 320Mn (PKR w.e.f October’24 89Bn) Highligh
Slide 6: Maximizing Returns for Shareholders
130 180 230 280 30 80 2024-04-30 2024-05-03 146 2024-05-07 2024-05-09 2024-05-13 2024-05-15 Dividend 2024-05-17 2024-05-21 PKR 5.5/share FFC 2024-05-23 2024-05-27 2024-05-30 2024-06-03 2024-06-05 2024-06-07 2024-06-11 2024-06-13 and growth in core business 2024-06-20 2024-06-24 2024-06-26 2024-06-28
Slide 7: Financial and Operational Overview (FFC & Group)
Financial and Operational 2 Overview (FFC & Group)
Slide 8: Financial Snapshot 9M-2024
Financial Snapshot 9M-2024 Investment income and cost optimization driving profitability Revenue Operating Profit PKR 166 Bn PKR 58 Bn 43% 61% SPLY 116 Bn SPLY 36 Bn Profit after tax PKR 42.6 Bn Other Income Gross Profit SPLY 22.2 Bn 92% PKR 25 Bn PKR 75 Bn 92% 67% SPLY 13 Bn SPLY 45 Bn
Slide 9: Profitability Breakdown (PKR 42.6 Bn) – 9M'24
Profitability Breakdown (PKR 42.6 Bn) – 9M’24 Dividend and investment income driving profitability Dividend Income Distribution by our subsidiaries 8.0 and associated companies PKR Profit from Fertilizer 8.0 Bn Business Sale of Urea and 24.7 Imported Fertilizers PKR 9M 2024 24.7 Bn PKR 9.9 Bn Invest
Slide 10: Six years at a glance - Production & Offtake 9M
Six years at a glance - Production & Offtake 9M Improved plant reliability & operational excellence Includes 95KT sale Production - KT Sales - KT of imported fertilizer 1,900 1,926 1,900 1,861 1,867 1,808 2,006 2,025 1,986 1,954 Operational 1,937 1,853 Excellence 1,911 1,838 1,821 1,864 1,773 1,795
Slide 11: FFC Group financial snapshot 9M-2024
FFC Group financial snapshot 9M-2024 Investment income and profits from associates augmenting growth Associates Revenue Gross Profit Other Income Profit PKR 185 Bn PKR 86 Bn PKR 16 Bn PKR 22 Bn SPLY PKR 135 Bn SPLY PKR 58 Bn SPLY PKR 12 Bn SPLY PKR 6 Bn FFC PKR 166 Bn FFC PKR 75 Bn FFC PKR 14 Bn FFB
Slide 12: Business Portfolio
Business Portfolio Investments driving profitability thru dividends Fertilizer Energy Services Food Cement FFBL Merger & Wind Energy: AKBL: Profitable, FFFL: market FCCL: Profitable Agritech Profitable & with strategic condition hampering with regular Acquisition in process consistent dividends tran
Slide 13: Fertilizer Industry Snapshot
3 Fertilizer Industry Snapshot
Slide 14: Sona Urea
Sona Urea Agritech 5% Fatima Gp Market Share improved to 51% vs 44% (FFC + FFBL) 14% FFC Sales KT Sep 2024 Sep 2023 % Variance 2024 43% 4,604 KT Engro Sona (NC) 320 165 94 30% FFBL Sona (P) 1,543 1,746 (12) 8% Imported Urea 95 - - FFC + FFBL 51% Agritech 4% FFC - Total 1,958 1,911 2 Fatima Sona (G)
Slide 15: Local vs Intl. Urea Price
Local vs Intl. Urea Price Benefit of USD 320Mn (PKR 89Bn) passed on to the farmers during the first nine months of 2024 8,090 7,810 7,600 7,440 7,420 7,180 6,410 6,180 6,870 6,090 6,690 6,380 6,450 6,320 6,400 5,710 6,180 6,170 5,970 6,010 5,820 2,125 PKR/Bag 4,275 4,275 3,642 3,471 3,642 3,085 3,28
Slide 16: Di Ammonium Phosphate (DAP)
Di Ammonium Phosphate (DAP) Fatima Gp Pvt Imp 4% Market Share declined to 66% vs 70% (FFC + FFBL) 9% FFC 6% Sales KT Sep 2024 Sep 2023 % Variance Engro FFC Imported DAP 54 78 (31) 21% 2024 964 KT FFBL Imported DAP 27 - - FFBL 60% Imported DAP 81 78 4 FFC + FFBL 66% SONA DAP 544 619 (12) Fatima Gp DA
Slide 17: FFBL Amalgamation; Agritech Acquisition
4 FFBL Amalgamation 5 Agritech Acquisition
Slide 18: Amalgamation of FFBL
Amalgamation of FFBL Expected to be completed before year end 2024 CCP approval obtained Expected hearing on 18th Nov Shareholders’ approved in M&A EOGM dated 4th Nov. Post Approval – Regulatory matters to be fulfilled Petition under Process
Slide 19: Acquisition of Agritech
Acquisition of Agritech Required regulatory processes initiated To date holding ~30% Payment to shareholders Acq. Announced Public Offer in last week of Oct Submission of documents to regulator
Slide 20: Q&A
Q&A c 2 a ”) ® “)
Fauji Fertilizer Company — 9M 2024 Earnings Presentation on 6ix