Pakistan Paper Products Limited · PSX:PPP
Pakistan Paper Products — FY2022 Earnings Presentation
39 slides from Pakistan Paper Products's earnings presentation, Nov 8, 2022
Slide 1: IN THE NAME OF ALLAH, THE MOST BENEFICIENT,
IN THE NAME OF ALLAH, THE MOST BENEFICIENT, THE MOST MERCIFUL
Slide 2: Pakistan Paper Products Limited Corporate Briefing Session
2 Pakistan Paper Products Limited Corporate Briefing Session For the Year Ended June 30, 2022 November 8,2022 Karachi
Slide 3: Disclaimer
3 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 Pakistan Paper Products Limited (PPP) solely for information purposes. No representation or warranty express or implied is made theret
Slide 4: Mr. Hashim Bin Sayeed, Founder and Former Chairman
4 Mr. Hashim Bin Sayeed December 24, 1927 – August 07, 2013 Founder and Former Chairman He was the Pillar of Strength for our Company and will always be our guiding light. May Allah shower His choicest blessing on him. Ameen!
Slide 5: Sequence of Presentation
5 Sequence of Presentation Company Profile Historical Financial Performance Financial Results FY 2022 vs. FY 2021 Future Outlook Questions & Answers
Slide 6: Company Profile
6 Company Profile Pakistan Paper Products Limited
Slide 7: Company Profile
7 Company Profile Pakistan Paper Products Ltd came into existence in 1951. At that time, our newly founded country had to import all its paper products which were resulting in the drain of valuable foreign Exchange. Realizing the need of the times, Mr. Hashim B. Sayeed (Late), founder and former C
Slide 8: Historical Milestones
8 Historical Milestones 2022 2020 •Capacity Expansion of Self Adhesive Pro 2016 •Capacity Expansion of Self Label Segment Adhesive Pro was undertaken. 1997 •Major Capacity Expansion of Self Label Segment Adhesive Pro was undertaken. 1964 •Started segment of Self Adhesive Label Segment Pro Labels was
Slide 9: Vision and Mission Statement
9 Vision and Mission Statement The Company’s vision is : To transform the company into a modern and dynamic paper converting company by utilizing experience of the team of professionals to play a meaningful role on sustainable basis in the economy of Pakistan The Company’s mission is : To provid
Slide 10: Products
10 Products Self Exercise Ammonia Photocopy Adhesive Books Sensitized & Labels Papers Plotter Paper
Slide 11: Exercise Books Segment
11 Exercise Books Segment "Serving the cause of education for more then 70 years" Pakistan Paper Products Ltd started its operations in 1951 with the production of exercise books, and had the distinction of being the first company in Pakistan to produce exercise books on automatic machinery and afte
Slide 12: Ammonia Sensitized paper Segment
12 Ammonia Sensitized paper Segment In 1957, Pakistan Paper Products ltd also had the distinction of being the first company in Pakistan to start producing ammonia sensitized paper and till today remains the market leader of this product. This product which is used in Architect and Engineer Drawings
Slide 13: Pro Labels Self Adhesive Labels in Roll Form Segment
13 Pro Labels Self Adhesive Labels in Roll Form Segment In 1997 to mark the 50th Anniversary of Pakistan and 46 Years of its dynamic operations in the country, Pakistan Paper Products Ltd. brought out yet another innovation in the market; Pro Labels –Self Adhesive Labels in Roll Form. These labels w
Slide 14: Major Customers/ Clients
ee Major Customers/ Clients The Phe Sav0ael Scteaol 4 € Tomorrow is our Destiny Se € City School e S Ng bE. & ce woe = ss wy Leer (S Castrol ¥, Chevron a Reckitt = —< Benckiser Shell THE EDUCATORS A Project of Menconhouse > corm LPs: Karachi Public School Plastics (Pvt.) Ltd Pakistan State Oil O Gla
Slide 15: Board of Directors
15 Board of Directors Mrs. Muleika Sayeed Non Executive Mr. Asadullah Sayeed Non Executive Mr. Abid Sayeed Chief Executive/ Executive Mr. Abbas Sayeed Mr. Sayeed Imran Chairman/ Non Executive Non Executive Ms. Ayesha Fariel Salahuddin Independent Mr. Shoaib Ahmed Khan Independent
Slide 16: Pattern of Share holdings as on June 30, 2022
16 Pattern of Share holdings as on June 30, 2022 S.No. Categories Shareholders Shares Held % Age 1. Associated Companies 907,026 11.34% 2. NIT & ICP 626,458 7.83% 3. Directors, CEO, their spouses and Minor Children 2,958,684 36.98% 4. Executives Nil 5. Individuals 2,593,386 32.42% 6. Public Sector C
Slide 17: Historical Financial Performance
17 Historical Financial Performance Pakistan Paper Products Limited
Slide 18: Operating Highlights
18 OPERATING HIGHLIGHTS Rupees in Thousands (‘000) HISTORICAL TREDNDS 2022 2021 2020 2019 2018 2017 Trading results Turnover 1,365,460 1,224,655 1,021,263 969,478 868,871 724,393 Sales -Net 1,234,186 1,092,962 913,310 875,439 788,229 659,935 Gross Profit 189,157 160,813 96,911 99,271 129,719 124,258
Slide 19: Operating Highlights
19 OPERATING HIGHLIGHTS Rupees in Thousands (‘000) HISTORICAL TREDNDS 2022 2021 2020 2019 2018 2017 Financial Position Total Assets 1,600,646 1,397,162 1,376,352 1,234,181 870,670 843,795 Paid up Capital 80,000 80,000 80,000 80,000 60,000 60,000 Reserves 936,558 999,029 955,050 947,258 634,269 597,0
Slide 20: Operating Highlights: Key Indicators
20 OPERATING HIGHLIGHTS KEY INDICATORS 2022 2021 2020 2019 2018 2017 Operating Gross Profit 15.33% 14.1% 10.61% 11.34% 16.46% 18.83% Profit before Tax 7.33% 8.88% 2.37% 2.74% 8.18% 11.07% Profit after Tax 5.00% 6.46% 1.70% 2.05% 6.35% 9.22% Return on Equity 6.07% 6.54% 1.50% 1.75% 7.21% 9.26% Return
Slide 21: Operating Highlights: Turnover Ratios in Days
21 OPERATING HIGHLIGHTS KEY INDICATORS 2022 2021 2020 2019 2018 2017 Turnover Ratios in Days Inventory Turnover Days 98 102 90 77 79 85 Receivable Turnover Days 69 71 78 63 57 63 Payable Turnover Days 52 55 54 34 31 35 Operating Cycle Days ( Net) 115 118 114 106 106 112
Slide 22: Turnover & Sales - Net
22 TURNOVER & SALES - NET Rupees in Thousands (‘000) 1,234,186 1,365,460 1,224,655 1,092,962 1,021,263 913,310 969,748 875,439 868,871 788,229 724,393 659,935 TURNOVER SALES - Net 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
Slide 23: Profit After Tax & Earning Per Share
23 PROFIT AFTER TAX & EARNING PER SHARE (Post tax) Rupees in Thousands (‘000) 70,565 10.11 60,832 61,744 8.82 8.34 50,068 7.72 17,975 15,570 2.25 1.95 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 EARNING PER SHARE (Post tax) PROFIT AFTER TAX
Slide 24: Shareholder's Equity & Breakup Value Per Share
24 SHAREHOLDER’S EQUITY & BREAKUP VALUE PER SHARE Rupees in Thousands (‘000) 127.07 509,167 124.88 488,423 421,793 428,808 440,912 387,481 119.38 118.41 115.71 109.50 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 SHAREHOLDER'S EQUITY BREAKUP VALUE PER SHARE
Slide 25: Dividends
25 DIVIDENDS Dividend History – % CASH DIVIDEND STOCK DIVIDEND 50.0% 35% 33.33% 25% 25.0% 12.5% - 10% - - 2017 2018 2019 2020 2021 2022 HISTORICAL TREDNDS 2022 2021 2020 2019 2018 2017 Cash Dividend 25% 50% 12.5% 10% 25% 55% Stock Dividend - - - - 33.33% - Cash Dividend Value (‘000) 20,000 40,000 10
Slide 26: Capacity & Production - Segment wise
26 CAPACITY & PRODUCTION - Segment wise Segments Units Capacity/ 2022 2021 2020 2019 2018 2017 Production Exercise Books Capacity 58,632 58,632 58,632 58,632 58,632 58,632 Groose Production 59,455 45,225 50,466 55,708 57,990 56,176 Capacity 4,000,000 3,500,000 3,500,000 3,000,000 3,000,000 2,750,000
Slide 27: Segment Wise Sales - Net
27 SEGMENT WISE SALES – NET Rupees in Thousands (‘000) 752,341 749,707 614,650 531,820 461,070 444,686 351,259 317,875 277,714 320,062 320,151 285,016 23,660 24,193 23,468 20,945 23,410 22,746 2017 2018 2019 2020 2021 2022 EXERCISE BOOKS PRO LABELS SENSITIZE PAPER & OTHERS
Slide 28: Financial Results (FY2022 vs FY2021)
28 Financial Results (FY2022 vs FY2021) Pakistan Paper Products Limited
Slide 29: Profitability Analysis
Profitability Analysis : Rupees in Thousands (‘000) FY- FY- Increase/ 29 Particulars % 2022 % 2021 (Decrease) % Turnover 1,365,460 1,224,655 11.50% Segment Wise Breakup Exercise Books 37.36% 461,070 29.08% 317,875 45.05% Pro -Labels 60.75% 749,707 68.84% 752,341 -0.35% Sensitized & Others 1.90% 23,4
Slide 30: Operating Performance
30 Operating Performance • By the Grace of Allah PPP performed well in spite of the economic crisis that the country is going through. • The top line grew by 11.5% with total turnover reaching a new record high of Rs 1.365 Billion. • Exercise books led the way with a growth of 45% in sales, • while
Slide 31: Pro Labels
31 Pro Labels: • The year was a very challenging one for Pro Labels due to the constant devaluation of the currency which eroded the margins and in addition the exchange loss on import of raw materials led to a massive decline in Profit before Tax. • Sales were relatively flat in terms of PKR as the
Slide 32: Exercise Books
32 Exercise Books: • Exercise Books had an extremely robust year with sales rising by 45% to Rs 461 million. This was mainly because we experienced 2 seasons in one financial year as the schools opened up fully in August 2021 after Covid lockdown so there was very brisk sales in the first quarter of
Slide 33: Sensitized Paper & Plotter Paper
33 Sensitized Paper & Plotter Paper: • Sensitized paper sales had a very disappointing year decreased by 27.90% and one of the major reasons being that for the first 3 months of the year we did not have raw material to produce this product. • Plotter paper which is it’s alternative had a robust year
Slide 34: Future Outlook
34 Future Outlook Pakistan Paper Products Limited
Slide 35: Future Outlook: Exercise Books
35 Future Outlook Company is operating at optimum capacity while the demand for our products is steadily growing. Exercise Books: Prices of paper have been rising along with other commodities but we have kept a very strict policy of increasing our prices also so that margins are not affected too
Slide 36: Future Outlook: Pro Labels
36 Future Outlook Pro Labels: • We are aware that the future is extremely challenging for Pakistan’s economy and we hope that things improve and the Forex rates stabilize which is very essential for this business. • The second Gallus machine which was a used machine arrived to in March 2022 but coul
Slide 37: Future Outlook: Sensitized Paper
37 Future Outlook Sensitized Paper: • As we have been pointing out in the past also that this is now a very obsolete product and there are hardly any suppliers left of raw material so it is very difficult to procure and I think that very shortly we will also have to cease production as now the deman
Slide 38: Question & Answers Session
38 Question & Answers Session
Slide 39: Thanks
39 Thanks
Pakistan Paper Products — FY2022 Earnings Presentation on 6ix