Security Papers Limited. · PSX:SEPL
Security Papers — Investor Presentation (September 2020)
50 slides from Security Papers's investor presentation, Sep 24, 2020
Slide 1: Corporate Briefing for Year Ended June 30, 2020
Security Papers LIMITED Corporate Briefing for Year Ended June 30, 2020
Slide 2: Disclaimer
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 Security Papers Limited (SPL) solely for information purposes. ▪ No representation or warranty express or implied is made thereto, and no
Slide 3: Sequence of Presentation
Sequence of Presentation Organizational Overview Shareholding Pattern & Governance Awards & Certifications Operational Performance Financial Highlights Strategic / Operational Developments Future Outlook / Challenges
Slide 4: Organizational Overview
ORGANIZATIONAL OVERVIEW | |
Slide 5: Company Profile
COMPANY PROFILE • Security Papers Limited (”SPL” or “the Company”) is a national strategic industrial organization engaged in the business of manufacturing security paper for Banknotes and Other Security Paper products. • Due to its strategic nature of operations, the Company has been classified as
Slide 6: Strategic Planning Process
TEGIC PLANNING PROCESS Operational Objectives & Goals Long term Strategic Objectives Strategic & Goals
Slide 7: Vision Statement
VISION STATEMENT “TO BE A NATIONALLY AND INTERNATIONALLY RECOGNIZED AND ACCEPTED SECURITY PAPER PRODUCING ORGANIZATION, PROVIDING HIGHEST QUALITY PAPER TO OUR CUSTOMERS, BOTH IN PAKISTAN AND ABROAD”. 7
Slide 8: Mission Statement
MISSION STATEMENT “OUR MISSION IS TO EXCEED THE EXPECTATION OF OUR CUSTOMERS IN PRODUCING, WITH SECURITY AND EFFICIENCY, HIGHEST QUALITY PAPER PRODUCTS, EMPLOYING INTERNATIONAL BEST PRACTICES AND APPLYING AN INTEGRATED APPROACH TO PRODUCT RESEARCH AND DEVELOPMENT, MANUFACTURING TECHNOLOGY, OPERATION
Slide 9: Our Business Model
Value Distribution OUR BUSINESS MODEL ‘Strong Relationship with Stakeholders is \Y “a> Key Processes Understanding Customers’ Needs Procurement Returnto Duties & Taxes ramen a ooeniny MK? O= 7 mae Shareholders to Government Investments to Employees
Slide 10: Strategic Goals
STRATEGIC GOALS Customers’ satisfaction Employees’ Enterprise Risk Continuous empowerment Management and improvement Business Continuity (KAIZEN) Planning Operational Efficiency Maximum Return on Corporate Social Investment Responsibility 10
Slide 11: Strategic Objectives
STRATEGIC OBJECTIVES - Increase focus on efficiency in the production process, reduce cost and improved product quality; - Generating superior returns to stakeholders, sustainable performance exceeding market and shareholder expectations; - To be a top stakeholder value generator in the Country’s se
Slide 12: Historical Milestones
Historical Milestones • Incorporated as Private Limited Company. 1965 • Listed on the Karachi Stock Exchange (now Pakistan Stock Exchange - 1967 PSX) • Started commercial production 1969 • New Paper Machine commissioned and inaugurated by Prime Minister 2004 of Pakistan. • Reverse Osmosis (RO) Plant
Slide 13: Historical Milestones (continued)
• Captive Power Plant installed 2009 • Modification and Upgradation of Rewinder and Sheeter Machines 2011 • New Mould Cover manufacturing facility installed 2012 • Automated Cotton (Comber) Dry Cleaning Plant installed 2014 • A new Thread Unwinding System installed 2015 13
Slide 14: Historical Milestones (continued)
• Paper for National Passport developed and produced 2016 • Production capacity enhanced from 2500 tons to 3500 tons per annum through expansion of Pulp making Plant and enhancing operational speed of 2018 paper machine • Capacity enhancement of Paper Machine completed by utilizing in house resource
Slide 15: Our Products
OUR PRODUCTS Non Judicial Banknote Paper Prize Bond Paper Stamp Paper Educational E – Stamp Paper Certificates and Parchment Paper (Govt. of Punjab) Degree Paper CBS – 1 NADRA CRC Passport Paper (Cheque Paper) Paper 15
Slide 16: Our Customers
OUR CUSTOMERS PAKISTAN SECURITY NATIONAL SECURITY GOVERNMENT OF PRINTING PRINTING COMPANY PUNJAB CORPORATION UNIVERSITIES, BOARDS AND NADRA OTHER INSTITUTIONS 16
Slide 17: Shareholding Pattern & Governance
SHAREHOLDING PATTERN & GOVERNANCE 17
Slide 18: Shareholding Pattern
SHAREHOLDING PATTERN As at 30 June 2020 General Public 10% PSPC Institutions 40% 30% Foreign Companies 20% 18
Slide 19: Board of Directors
BOARD OF DIRECTORS Election of Directors held on Sept 01, 2020 Non-Executive Directors Chairman Mr. Muhammad Haroon Rasheed Directors Mr. Jamal Nasim Mr. Muhammad Sualeh Ahmad Faruqui (Independent) Dr. Abolghassem Jamshidi Mr. Rauf Ahmad Mrs. Uzma Aijaz (Independent) Ms. Figen Caliskan Mr. Naveed Eh
Slide 20: Board Committees
BOARD COMMITTEES Board of Directors Board Human Board Investment Board Audit Resource and Board and Risk Board Strategic Committee Remuneration Procurement Management Committee Committee Committee Committee 20
Slide 21: Management Committees
Management Committees • Executive Committee • Corporate Social Responsibility (CSR) Committee • IT Steering Committee • Enterprise Risk Management Committee • Business Continuity Plan Committee • Health & Safety Committee • Worker’s Welfare Fund Committee • Worker’s Profit Participation Fund (WPPF)
Slide 22: Board's Approved Policies
Board’s Approved Policies 1) Corporate Social 11) Training & Development Responsibility Policy Policy 2) Sexual Harassment Policy 12) Employee Welfare Fund 3) Investment Policy (EWF) Policy Guidelines 13) Related Party 4) Risk Management Policy Transactions Policy 5) Insider Trading Policy 14) Commu
Slide 23: Awards & Certifications
Awards & Certifications 23
Slide 24: Top Companies Award of Pakistan Stock Exchange
Top 25 Companies Award of Pakistan Stock Exchange SPL secured 5th position on the basis of the highest score achieved. The Company has the distinction of receiving this prestigious award for the years 2000 to 2007 and 2009 to 2016. 24
Slide 25: 35th Corporate Excellence Award by MAP
35th Corporate Excellence Award by MAP The Company holds 24th to 29th The award manifests the Security Paper Limited has won Awards (six times running) and Company's commitment to the MAP's 35th Corporate 31st to 35th Awards of the MAP. quality, maintenance of the Excellence Award conferred by This
Slide 26: Corporate Awards
Corporate Awards Top Companies Award: • Won Top 25 Companies Award of PSX for the years 2000 to 2007 and 2009 to 2016 & 2018. Corporate Excellence Award: • Won 35th Corporate Excellence Award of the Management Association of Pakistan (MAP); • Holds 24th to 29th Awards (6 times in a row) as well as 3
Slide 27: Corporate Awards
Corporate Awards Fire & Safety Award: • Won Fire & Safety Award 2011, 2012, and 2013 for 3 consecutive years – awarded by Fire Protection Association of Pakistan and National Forum for Environmental & Health. Environmental Excellence Award: • Received the 17th Annual Environmental Excellence Award 2
Slide 28: ISO Certifications
ISO Certifications Quality Environmental Occupational Management Management Health & System (ISO System (ISO Safety 9001:2015) 14001:2015) Management System (ISO 45001: 2018) 28
Slide 29: CSR Activities
S U S TA I NA B I L I T Y A N D C S R CSR Activities Rs 10.86 MN incurred on CSR during FY 2019-20 Dow University of SOS Children’s Health Sciences – Villages OJHA campus (Rs 640,000) (Rs 2,776,000) Rana Liaquat The Indus Hospital Craftsmen’s Colony (Rs 1,000,000) (Rs 698,000) Emergency The Hunar Ea
Slide 30: COVID-19 Pandemic Management Initiatives
C OV I D - 1 9 Pa n d e m i c M a n a g e m e n t I n i t i a t ive s ▪ The COVID-19 pandemic badly affected the entire corporate sector. During these challenging times, the Company managed to operate, often with very thin staff and successfully deployed business continuity and incident management p
Slide 31: Slide 31
Slide 32: Operational Performance
OPERATIONAL PERFORMANCE FOR THE YEAR ENDED JUNE 30, 2020 32
Slide 33: Sales Performance
SALES PERFORMANCE JULY - JUNE Revenue - PKR in Million PSPC Other than PSPC 6,000 4,901 5,000 4,002 4,000 3,467 2,842 2,584 3,000 3,936 3,493 2,000 2,898 2,118 2,515 1,000 965 466 327 569 509 - 2016 2017 2018 2019 2020
Slide 34: Sales Volume
SALES VOLUME JULY - JUNE 5,000 Paper sold (Tons) 4,500 4,335 4,000 3,726 3,500 3,303 3,000 2,858 2,658 2,500 2,000 1,500 1,000 500 - 2015-16 2016-17 2017-18 2018-19 2019-20
Slide 35: Financial Highlights
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED JUNE 30, 2020 35
Slide 36: FY 2019-20 Financial Performance
FY 2019-20 Financial Performance Raising the Bar • Highest ever Sales of Rs • Highest ever Profit after 4,901 MN (up 22.48% YoY) tax of Rs 1,276 MN (up 65.31% YoY) • Highest ever Gross Profit of Rs 1,896 MN (up 19.62% • Highest ever dividend YoY) of 90% (up 9.10% YoY)
Slide 37: SPL's Robust Financial Performance from 2016 to 2020
S P L’ S RO B U S T F I NA N C I A L P E R FO R M A N C E F RO M 2 0 1 6 TO 2 0 2 0 JULY - JUNE PARTICULARS 2020 2019 2018 2017 2016 PAPER SOLD – TONS 4,335 3,726 3,303 2,858 2,658 SALES – RS ’000 4,901,284 4,001,591 3,466,918 2,842,085 2,583,566 GROSS PROFIT – RS ‘000 1,896,309 1,585,236 1,293,223
Slide 38: Profitability
Profitability GP Margin NP Margin 39.60% 38.69% 38.30% 37.30% 33.93% 33.00% 26.00% 24.40% 21.30% 19.20% 2015-16 2016-17 2017-18 2018-19 2019-20
Slide 39: Ratio Analysis
Ratio Analysis Security Papers LIMITED
Slide 40: Ratios Analysis: Profitability
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – JUNE PARTICULARS 2020 2019 2018 2017 2016 PROFITABILITY RATIOS GROSS PROFIT TO SALES % 39% 40% 37% 38% 34% NET PROFIT TO SALES % 26% 19% 16% 33% 24% RETURN ON EQUITY % 22% 16% 12% 20% 15%
Slide 41: Ratios Analysis: Asset Management
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – JUNE PARTICULARS 2020 2019 2018 2017 2016 ASSET MANAGEMENT TOTAL ASSETS TURNOVER % 70% 66% 59% 50% 49% INVENTORY TURN OVER 54 57 79 108 88 RATIO-DAYS DEBTORS TURNOVER RATIO- 41 60 57 52 36 DAYS CREDITOR TURNOVER RATIO 29 22 35
Slide 42: Ratios Analysis: Liquidity, Debt, Market
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – JUNE PARTICULARS 2020 2019 2018 2017 2016 LIQUIDITY RATIOS CURRENT RATIO 3.71:1 3.37:1 3.94:1 3.87:1 3.78:1 QUICK RATIO 3.02:1 2.82:1 3.37:1 3.06:1 2.97:1 DEBT MANAGEMENT DEBT EQUITY RATIO 0.00:1 0.00:1 0.00:1 0.00:1 0.00:1 MA
Slide 43: SPL vs KSE100 Share Price Performance
PRICE /SHARE IN RS 110 130 170 150 50 70 90 01-Jul-19 15-Jul-19 29-Jul-19 08-Aug-19 22-Aug-19 03-Sep-19 19-Sep-19 27-Sep-19 10-Oct-19 24-Oct-19 07-Nov-19 15-Nov-19 SPL 25-Nov-19 03-Dec-19 SPL (L1) KSE-100 11-Dec-19 19-Dec-19 30-Dec-19 07-Jan-20 15-Jan-20 23-Jan-20 31-Jan-20 11-Feb-20 KSE-100 (R1) SP
Slide 44: Strategic/Operational Developments
Strategic/Operational Developments 44
Slide 45: Key Initiatives Underway
KEY INITIATIVES UNDERWAY The Company has undertaken BMR program and several other in-house development projects to enhance capacity, quality, and productivity. The Company is pursuing continuous improvement projects under KAIZEN by involving people at the working level The Company is concentrating o
Slide 46: Projects Completed during FY 2019-20
Projects Completed during FY 2019-20 Waste Water Recycling plant Energy Conservation Project (commissioned in Aug’20) (1st phase completed) Development of RO Bore (1st Chiller (operational) & phase Completed, drilling of Cooling Towers & Allied RO Bore has been completed works (under progress) while
Slide 47: Projects under Progress
Projects under Progress Pilot Project on New Refiners Renewable Energy Up-gradation of Winder New Cylinder Mould & Sheeter machines Up-gradation of fire Waste Heat Recovery of fighting system & New Gas Generators Entrance Gate 47
Slide 48: Future Outlook / Challenges
FUTURE OUTLOOK / CHALLENGES 48
Slide 49: Future Outlook / Challenges
FUTURE OUTLOOK / CHALLENGES The COVID shock has brought to greater attention the importance of building a stronger and more The on-going Financial Year is expected to remain resilient business as well as the importance of challenging for the business owing to inflationary building stronger local and
Slide 50: Thank You, Question & Answers
THANK YOU QUESTION & ANSWERS 50
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