Thal Limited · PSX:THALL
Thal — Investor Presentation (May 2022)
40 slides from Thal's investor presentation, May 19, 2022
Slide 1: Corporate Briefing Session
Corporate Briefing Session May 19, 2022 at 03:00 PM
Slide 2: Company Profile
Company Profile Incorporated on January 31, 1966 Public listed company since 1967 The pioneer industrial project of House of Habib Grown from having one business division to 6 business divisions – Engineering and Packaging segments Employing over 4,500 people Credit Rating: AA / A-1+ for
Slide 3: Company Profile
Company Profile Business divisions Investment in subsidiaries Thal Engineering: • Habib METRO Pakistan (Private) Limited – 60% (JV with METRO Cash & Carry International Holding B.V., • Thermal Systems and Engine Components Business Netherlands) • Electric Systems Business • Thal Boshoku Pakistan (Pr
Slide 4: Thal Business Highlights
Thal Business Highlights SUSTAINABLE GROWTH • Revenue of PKR 27.5 B in 9M FY22 vs PKR 19.3 B in 9M FY21 • PBT of PKR 4.6 B in 9M FY22 vs PKR 3.4 B in 9M FY21 ENGINEERING SEGMENT • Increasing footprint with new entrants - after Tuscon, Elantra WH business procured from Hyundai • Engaged with OEMs for
Slide 5: Challenges
Challenges Rising global commodity prices adding to input cost inflation Pressure on margins due to Pak Rupee devaluation and rising interest costs Global supply chain disruptions adding to freight cost and need to carry safety stock to ensure smooth supply 100% cash margin on LCs adding fur
Slide 6: Thal Snapshot – Maintaining Momentum
Thal Snapshot – Maintaining Momentum 12,000 3,000 10,349 9,491 10,000 2,500 7,905 7,958 7,674 1,951 8,000 1,701 2,000 Rs in Million Rs in Million 6,350 1,777 1,429 1,394 1,873 6,000 5,104 1,277 1,500 1,280 1,185 1,678 1,547 1,024 1,233 4,000 1,309 1,298 1,293 1,337 1,000 1,155 1,166 928 906 2,000 50
Slide 7: Thal’s Businesses
Thal’s Businesses Engineering Segment Thal Limited cq < Va \ Building Material & Allied Products “ae a > sas ta ENGINE COMPONENT FURUKAWA ELECTRIC Yazaki ss Toyota Boshoku , am 1 Pos THAL BOSHOKU PAKISTAN a ry THAL BOSHOKU PAKISTAN
Slide 8: Automobile Industry: Quarterly Sales (Units)
Automobile Industry: Quarterly Sales (Units) 70,000 38,431 34,272 60,000 29,025 28,077 50,000 22,019 20,451 40,000 21,705 17,485 PSMC 19,426 IMC 30,000 18,646 19,182 HACPL 16,531 14,566 14,424 13,863 11,715 20,000 10,376 9,172 9,327 10,000 7,435 8,031 7,593 6,231 6,811 - JUL-SEP OCT-DEC JAN-MAR APR-
Slide 9: Esteemed Customers
Esteemed Customers GNL Automotive Lamps & Automotive Seat Manufacturer Mirror manufacturer 9
Slide 10: Thermal Systems Business
@® Thermal Systems Business Product Offerings TAA DENSO Thermal Systems Div a Reserve Tank Hoses & Tubes dy Viti” Heater Core Evporator 10
Slide 11: Electric Systems Business
Electric Systems Business Yazaki S No. OEM No. of Harness 1 Toyota 195 2 Honda 90 3 Suzuki 47 4 Others 109 TOTAL 441 11
Slide 12: New Businesses in Pipeline
New Businesses in Pipeline • Business for new models secured • Motorcycle harness business, SVP started Oct ‘21 • New business opportunity for thermal and electric division • SVP started for new City in Aug’21, and Civic SVP started in Feb’22 • Thermal Products discussion ongoing for new business •
Slide 13: Yazaki Plant
YAZAKI PLANT Local cables Pilot lot was successfully completed. Mass production has commenced from Mar-22. MOU between Yazaki and TL for manufacturing of Wiring Harness extended for another 5 years. Also, Yazaki agreed to extend support to TE for upcoming models other than Yaris. THAL Plant ha
Slide 14: Thal Boshoku Pakistan (Private) Limited
Thal Boshoku Pakistan (Private) Limited Car Seats 14
Slide 15: Thal Boshoku
THAL BOSHOKU Company is in touch with new and existing OEMs to get their Seat Business. Received encouraging response for further discussion.
Slide 16: Environmental Excellence Award
Environmental Excellence Award 18th Annual Environment Excellence Award by NFEH on September 16, 2021 16
Slide 17: Fire Safety Award
Fire Safety Award Fire Safety Award 11th Annual Fire Safety Award By Fire Protection Association Of Pakistan Ceremony on 9-Dec-21 17
Slide 18: System Audits 2021-22 (IATF 16949)
System Audits 2021-22 ( IATF 16949 ) 14th & 15 March’22 (TE Unit I & II) External Audit by Russian Auditor. Successfully Conducted with No Major NC 18 18
Slide 19: 9th QCC Convention 2022
9th QCC Convention 2022 9th QCC Convention was held on March 26, 2022 19
Slide 20: Thal’s Businesses
Thal’s Businesses Thal Limited I » a Toyota Boshoku ==. S35 Poey =— <5 THERMAL SYSTEMS Engineering Py) Segment Qian es ELECTRICAL SYSTE! Building Material & Allied Products PAPERSA\ S47 THAL BOSHOKU PAKISTAN 20
Slide 21: Thal Packaging – Products
Thal Packaging – Products Cement Bags – Industrial Sacks – SOS & Burger Carrier Bags Local Polypropylene Local & Export Local & Export Wraps– Local & & Export Markets Bags Markets Markets Export Markets Fashion Bags Cement Bags Multi-Ply Sacks Guar Gum Fast Food Sports Wear Industrial Sacks Semi-Ext
Slide 22: Investment in WPP Bags’ Manufacturing Line
Investment in WPP Bags’ Manufacturing Line Capacity 90 M Bags per year. Investment PKR 1.7 Billion Equipment Financing SBP – TERF Location HUB – Baluchistan Expected Commercialization Completed Supplier WindMoller & Holscher 22
Slide 23: Customer Base – Thal Packaging
Customer Base – Thal Packaging 23
Slide 24: Thal Jute – Product Mix
Thal Jute – Product Mix Sales Quantity: 19,713 MT Sales Quantity: 17,308 MT Others Hessian 13% Others 26% 16% Sacking Hessian 53% 31% Sacking 61% Jul 21 – Mar 22 Jul 20 – Mar 21 24
Slide 25: Thal Jute – Market Share
Thal Jute – Market Share 80 50% 74 70 45% 46% 70 67 65 40% 59 60 57 38% 35% Total Market Volume (Tons in '000) 36% 36% 36% 35% 50 Thal Ltd. market share 30% 44 40 25% 25% 20% 30 15% 20 10% 10 5% - 0% 2016 2017 2018 2019 2020 2021 Q3 FY22 PJMA Production Thal's Share 25
Slide 26: Thal Jute – Export
Thal Jute – Export 10,000 80% 76% 72% 9,000 69% 68% 70% 8,000 60% 7,000 54% 6,708 47% 50% 6,000 5,000 40% 5,944 2,593 4,000 4,074 30% 3,000 2,173 20% 2,000 2,399 2,983 3,055 10% 1,000 1,828 1,880 1,940 955 - 0% FY2017 FY2018 FY2019 FY2020 FY2021 3Q FY2022 Other Mills Export Thal Export Thal's share
Slide 27: Thal’s Businesses
Thal’s Businesses Other • Habib METRO Pakistan (Private) • Thal Power (Private) Limited Subsidiaries Limited 27
Slide 28: Habib METRO Pakistan (Private) Limited
Habib METRO Pakistan (Private) Limited Shareholding Structure Dividend History 60% Thal Limited 40% Metro AG 1000 Full year Nine months ended 906 900 882 800 776 ISB 1 700 671 670 LHE FSD 6 2 594 3 600 4 539 5 Rs. In Millions 500 400 366 300 7 9 KHI 8 200 100 HMPL owns & manages a total of 9 Propert
Slide 29: Investments in Energy Sector
Investments in Energy Sector 29
Slide 30: Sindh Engro Coal Mining Company Limited
Sindh Engro Coal Mining Company Limited 30
Slide 31: Box Cut, Mine Depth, Dewatering
Box Cut: 600 M Mine Depth: 195 m Dewatering: 74,352 M3/ day FOREX Saved: $290 million till Mar 2022 31
Slide 32: SECMC Phase I – Key Events
SECMC Phase I – Key Events Key Events Forecasted Dates Significance Tariff True up Calendar year COD stage tariff for SECMC Phase I must be determined by Thar Coal Energy Board. 2022 True up of tariff is also a condition for Project Completion (PCD) from SECMC lenders. Once PCD occurs, SECMC can pay
Slide 33: SECMC Phase II
SECMC Phase II Key Events Forecasted Dates Financial Close 31 Dec 2019 (occurred) Expected COD 2H of calendar year 2022 33
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Slide 35: ThalNova Power Thar (Private) Limited
ThalNova Power Thar (Private) Limited 35
Slide 36: a y = = = * » B ® ~ Fa = Ps \
a y = = = * » B ® ~ Fa = Ps \
Slide 37: Key Events Forecasted Dates
Key Events Forecasted Dates Financial Close 30 Sep 2020 (occurred) Disbursement of 1st debt tranche April 2021 (occurred) Expected COD 2H of calendar year 2022 ThalNova construction activities are in full swing. The progress has been heavily impacted by COVID and the recent lockdown in China has imp
Slide 38: Financial Highlights
Financial Highlights 38
Slide 39: Profit or Loss
Profit or Loss YTD YTD Mar-2022 Mar-2021 Rs. in Million Revenue 27,513 19,359 Gross Profit 4,888 3,514 Profit before taxation 4,556 3,406 Profit after taxation 3,425 2,589 EPS (Rs.) 42.27 31.95 Breakup value (Rs.) 325.89 283.42 39
Slide 40: Thank You
Thank You 40