Fatima Fertilizer Co. Ltd. · PSX:FATIMA
Fatima Fertilizer — FY2012 Earnings Presentation
17 slides from Fatima Fertilizer's earnings presentation, 2013
Slide 1: Company Performance 2012
FERTILIZERS Company Performance 2012 xa Fatima
Slide 2: Domestic Fertilizer Market 2012
Domestic Fertilizer Market 2012 ¾ The fertilizer market in 2012, exhibited a mixed trend. ¾ The Nitrogen market continued to decline for the third consecutive year 2012 (2011) National Effective National MT Mil Capacity Production Demand Nitrogen 6.8 (5.9) 4.6 (5.5) 5.7 (6.7) Phosphate 1.3 (1.0) 1.0
Slide 3: Company Performance
Company Performance The Sales in line with production in the nitrogenous fertilizers. Prod/Sales Nameplate Actual Sales MT (000)2012 (2011) Capacity Production Nitrogen 920 713(782) 689 (845) Phosphate 360 262(143) 295 (108) ¾ CAN sales at 350,000MT, down 12% compared to last year, impacted partiall
Slide 4: Brand Establishment – “Sarsabz”
Brand Establishment – “Sarsabz” The “Sarsabz” brand building strategy launched in 2011 continued with both product specific and portfolio communication throughout the year. ¾ Significant focus on NP growth during the year. ¾ Two successful farmer campaigns during Kharif and Rabi with positive impact
Slide 5: Financial Performance - 2012
Financial Performance ‐ 2012 The Company has announced its result for the year ended December 31, 2012 today. Major hallmark of the financial performance are as follows: Revenue of PKR 29.5 billion, 99% more than LY EBITDA of PKR 16.4 billion, 66% more than LY Net profit of PKR 6.11 billion, 4
Slide 6: Financial Performance - 2012
Financial Performance ‐ 2012 The Company improved and fortified its financial management system by placing various control systems and took advantage of both internal and external sources effectually which led the Company to take following measures: Early repayment of PKR 10 billion expensive loan
Slide 7: Summary
Summary VARIANCE % DESCRIPTION 2012 2011 F/(UF) Production & Sales “000” MT Production Fertilizer 975 925 5 Sales Fertilizer 984 954 3 1,000 900 800 700 600 500 ACTUAL 2012 "000" tons 400 ACTUAL 2011 300 200 100 ‐ Production Fertilizer Sales Fertilizer
Slide 8: Profitability
Profitability 2011 DESCRIPTION UM 2012 VARIANCE % F/(UF (July to Dec ) Income Statement Sales Revenue 29,519 14,833 99 Gross Margin 17,266 10,092 71 EBITDA 16,340 9,862 65 "PKR Million" Finance Cost 5,774 3,063 89 Profit before tax 9,081 6,088 49 Profit after tax 6,111 4,117 48 30,000 25,000 20,000
Slide 9: Equity, Debt & Assets
Equity, Debt & Assets DESCRIPTION UM 2012 2011 Balance Sheet Shareholders' Equity 28,950 28,055 Long Term Finance 27,024 34,457 Cash & Cash Equivalent "PKR Million" 984 3,839 Property, Plant & Equipment 65,883 66,828 Total assets 76,005 76,347 80,000 70,000 60,000 50,000 PKR Million 40,000 ACTUAL 20
Slide 10: Ratios
Ratios DESCRIPTION UM 2012 2011 Leverage Long Term Debt/Equity Ratio 51:49 57:43 Leverage 1.63 1.72 "Times" Interest Coverage Ratio 2.57 2.99 Liquidity Ratios Current Ratio 0.68 0.84 "Times" Quick Ratio 0.47 0.71 Valuation EPS "PKR" 2.86 1.90 3.00 2.50 2.00 1.50 ACTUAL 2012 1.00 ACTUAL 2011 0.50 ‐ L
Slide 11: Profitability Ratios
Profitability Ratios 2011 DESCRIPTION UM 2012 VARIANCE % F/(UF) (July to Dec ) Key Operating Ratios Contribution Margin 75 76 (1) Gross Profit Margin 58 68 (15) Pre Tax Margin "%" 31 41 (25) After Tax Margin 21 28 (25) EBITDA % 55 66 (17) 80 70 60 50 40 ACTUAL 2012 ACTUAL 2011 30 20 10 ‐ Contributio
Slide 12: Ratio Analysis with Competitors
RATIO ANALYSIS WITH COMPETITORS Based on 2012 Results Based on September 2012 Results PROFITABILITY RATIOS Unit FATIMA FFC FFBL PFL ENGRO Gross profit ratio % 58.49 48.44 22.01 25.59 30.99 EBITDA/Sales % 55.16 44.88 18.79 31.63 20.77 Net profit before tax ratio % 30.76 41.74 10.69 0.43 (21.39) Net p
Slide 13: Operational Performance - 2012
Operational Performance ‐ 2012 ¾ Year 2012 was challenging but successful. ¾ Dehumidification Unit was successfully installed and commissioned at CAN Plant, enabling ~200 T/Day increase in plant throughput in humid summer season ¾ Reliability of NP plant has considerably improved ¾ As a result of ma
Slide 14: Operational Performance - 2012: Ammonia Plant Revamp
Operational Performance ‐ 2012 Ammonia Plant Revamp for 1800 MT ¾ Revamp study for 1800 MT is now complete ¾ Basic Engineering contract for 1800 MT is being awarded. Detail Engineering contractors are also being engaged in parallel ¾ Revamp shall be executed in 2015 ¾ In view of very attractive payb
Slide 15: Future Outlook
Future Outlook The industry will continue to grapple with the issues like: ¾ Gas curtailment in the next year also. ¾ This is likely to result in expensive imports again. ¾ Capacity within the country continuously lying idle. ¾ Continued decline in usage of nitrogenous fertilizer, which will eventua
Slide 16: Fertilizer - Opportunities for Growth are Overseas
Fertilizer ‐ Opportunities for Growth are overseas. Fatima Looking at a lucrative opportunity in Indiana State in USA. • US gas prices at $ 3.5 to $ 4.0 per mmbtu at historical lows. • US imports half of its Nitrogen Fertilizer demand of 20 Million Tons. • Established strong infrastructure and distr
Slide 17: Thank You!
THANK YOU!
Fatima Fertilizer Company — FY2012 Earnings Presentation on 6ix