Slide 1: Corporate Briefing Session
CORPORATE BRIEFING SESSION For the Year ended June 30th 2023
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by Interloop Limited for information purposes only. No representation or warranty express or implied is made thereto and no reliance should be placed on the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion
Slide 3: Contents
Contents About Our Our Us Mission Vision Responsible Key Future Partner Highlights Outlook
Slide 4: About Us
About Us Hosiery ~800 million pairs Of socks annual production capacity A diverse and passionate team of 30,000+ associates, having a footprint in six countries, Interloop is Pakistan’s largest listed textile Denim Apparel company and has experienced sales growth with a 6 million garments ~30 millio
Slide 5: Our Mission
Our Mission To be an agent of positive change for the stakeholders and community by pursuing an ethical and sustainable business.
Slide 6: To Become a Full Family Clothing Partner of Choice
2025 To Become a Full Family Clothing Partner of Choice % A diverse, inclusive and engaged workforce A creating a high performing organization [Aat’ Drive efficiencies through << and provide transparency to our customers with real time information 9 Drive an agile organization retaining our HF ® com
Slide 7: Responsible Partner
Responsible Partner (oe a. puma’ © HUGO BOSS TARGET CES TE x M&S PRIMARK TESCO = jcpenney { « f = CZ a, r 7N\ GYMSHARK carter’s scsrseuce fat iat ierber.
Slide 8: Responsible Partner
Responsible Partner Lead the way in responsible manufacturing meeting the highest standards of environmental and social performance. 70% 4% Profit 25% GHG 25% Water 100% Sustainable & 30% Diverse Investment in Emissions Consumption Diversion of Traceable Workforce Community Reduction Reduction Waste
Slide 9: Responsible Partner
Responsible Partner A) soe Interloop becomes Pakistan's TARGETS an - 18t Large-Scale Enterprise with Approved Science Based Targets This includes 51% reduction in direct emissions (Scope “ ,, indirect emissions (Scope 2) in line with 1.5 °C pathway, and a 30% reduction in emissions along its value c
Slide 10: Interloop ESG Framework
10 Interloop ESG Environment Social Governance GHG emissions Board ESG committee Framework Water consumption Labor standards, wages and benefits Strategic sustainability oversight Sustainable & traceable Workplace and board diversity through Corporate Sustainability materials Talent management depar
Slide 11: FY'23 Key Highlights
11 FY’23 Key Highlights UN GCNP Sustainability Award First prize in the Large National Enterprise category at Global Compact Business Sustainability Awards 2022 During FY’23, we not only sustained our growth by pursuing the expansion plans but also focused towards achieving our PKR29B Apparel Master
Slide 12: Textile Sector Update
Textile Sector Update CAGR As per WTO, Pakistan stands amongst top 10 global ILP 16% vs Sector 6% textile exporters, with a market share of ~3%. 20 60% However, due to non-competitive policies, lack of 18 50% innovation, and an unstable macroeconomic 16 40% Export Sales (USD’B) environment, Pakistan
Slide 13: Region-wise Sales Breakup
Region-wise Sales Breakup FY’22 FY’23 PKR 91B PKR 119B ASIA & ASIA & OTHERS OTHERS 14% 16% NORTH 53% 47% AMERICA 33% NORTH 37% EU & UK AMERICA EU & UK
Slide 14: Capacity Utilization
Capacity Utilization Utilization slowed down in FY’23 as demand in the key markets was declining, however, our multi-category strategy led us sustain the value growth. FY'23 FY'22 75% Hosiery 84% 71% Denim 77% 29% Apparel 62% 29% Activewear 50%
Slide 15: Economic Value Added
Economic Value Added FY’23 FY’22 Particulars PKR’M % PKR’M % Economic Value Generated Gross Revenues 120,499 100% 92,118 100% Economic Value Distributed Operating cost 65,797 55% 54,071 59% Employee wages and benefits 25,588 21% 19,165 21% Payment to providers of capital 11,107 9% 6,071 7% Payment t
Slide 16: Key Financial Highlights
Key Financial Highlights Indicators UoM FY’23 FY’22 FY’21 Net Sales PKR’B 119 91 55 Gross Profit PKR’B 40 26 14 Net Profit PKR’B 20 12 6 Gross Profit Margin % 33.5 28.7 25.9 Net Profit Margin % 16.9 13.6 11.5 Cash Dividend per Share – Declared PKR 5.0 4.0 2.5 Bonus Issue [Per 100 Share] 50% 4% 3% Ea
Slide 17: Key Financial Indicators
Key Financial Indicators ILP’s revenue has grown at a 5-year CAGR of 33.5% and for FY’23 our multi-category strategy led us to achieve a staggering 31% YoY surge. CAGR 33.5% 119 Revenue (PKR’B) 91 55 37 36 FY'19 FY'20 FY'21 FY'22 FY'23
Slide 18: Key Financial Indicators
Key Financial Indicators ILP’s net profit has grown at a 5-year CAGR of 40%. Cost conservation strategies coupled with healthy FX gains led 63% YoY surge in profitability during FY’23. CAGR 40% Net Profit (PKR’B) 20 12 6 5 2 FY'19 FY'20 FY'21 FY'22 FY'23
Slide 19: Key Financial Indicators
Key Financial Indicators ILP’s EBITDA has grown at a 5-year CAGR of 39%. CAGR 39% 30 EBITDA (PKR’B) 18 10 8 5 FY'19 FY'20 FY'21 FY'22 FY'23
Slide 20: Key Financial Indicators
Key Financial Indicators ILP has achieved the highest ever ROE of 46% during FY’23. Return on Equity (%) 46% 41% 29% 31% 10% FY'19 FY'20 FY'21 FY'22 FY'23
Slide 21: Key Financial Indicators
Key Financial Indicators ILP has maintained a healthy Current Ratio of above 1.0 over last 5 years. Current Ratio (Times) 1.3 1.3 1.2 1.1 1.1 FY'19 FY'20 FY'21 FY'22 FY'23
Slide 22: Key Financial Indicators
Key Financial Indicators ILP has matured its long-term debt which has brought down the Gearing Ratio below 40% in FY’23. Gearing Ratio (%) 54.2% 51.9% 41.8% 39.5% 27.3% FY'19 FY'20 FY'21 FY'22 FY'23
Slide 23: Apparel Project Status
Project Overview Sustainability Centralized Services • Fully vertical knitwear apparel • Adding 10 MW of renewable • Large daycare and a central lab Apparel • investment of PKR29B Infrastructure spread over 1.3 • energy Bio-mass based boilers • serving all businesses Interloop university – technical
Slide 24: Q&A
Q&A INTERL@P
Slide 25: Thank You
Thank You INTERL@P