Packages Limited · PSX:PKGS
Packages — FY2019 Earnings Presentation
31 slides from Packages's earnings presentation, May 29, 2020
Slide 1: Packages Limited Corporate Briefing Session
PACKAGES LIMITED Corporate Briefing Session May 29, 2020 Creating a better tomorrow
Slide 2: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 2
Slide 3: Our Business Units
OUR BUSINESS UNITS Our Packaging Business CONSUMER FLEXIBLE PRODUCTS PACKAGING Local Customers 30% 23% Total Sales 48% PKR 22.9 Bn 29% FOLDING International CARTONS Customers 70% Creating a better tomorrow 3
Slide 4: Folding Cartons
FOLDING CARTONS OUR CUSTOMERS High quality detailed graphics in Offset and Rotogravure printing Produce a wide range of products for tobacco, pharma, FMCG, personal care and food industries OUR BUSINESS SEGMENTS General Tobacco, Packaging, 41% 59% Creating a better tomorrow 4
Slide 5: Folding Cartons - Products
FOLDING CARTONS - PRODUCTS Location Lahore, Pakistan First operation 1957 Total Area 100,000 sq ft Board conversion (2018) 26,000 tons Creating a better tomorrow 5
Slide 6: Flexible Packaging - Pakistan
FLEXIBLE PACKAGING - PAKISTAN OUR CUSTOMERS High quality detailed graphics in Flexographic and Rotogravure printing Produce lamination for plastic films, aluminium foil and paper OUR BUSINESS SEGMENTS Others, 8% Food, 30% Personal Care, 26% Snack & Beverages, Dairy, 18% 18% Creating a better tomorro
Slide 7: Product Segments – Pakistan Market
PRODUCT SEGMENTS – PAKISTAN MARKET Home & personal care Ice cream cones Instant drinks Creating a better tomorrow 7
Slide 8: Accreditations & Certifications
ACCREDIATIONS & CERTIFICATIONS URSA FSC CoC www.packages.com.pk PAGE // 8
Slide 9: Consumer Products
CONSUMER PRODUCTS OUR BRANDS Pakistan’s only tissue manufacturing with a capacity of 100 ton per day Produce facial tissues, toilet rolls, napkins, party packs, kitchen rolls, paper cups and plates OUR MARKET SHARE OUR BUSINESS SEGMENTS Rest of the Market B2B, 17% Branded, 78% 38% Others, 5% 62% Pac
Slide 10: Our Portfolio
OUR PORTFOLIO ✓ Facial ✓ Toilet Rolls ✓ Party Pack ✓ Paper Towels ✓ Napkins ✓ Pocket Packs ✓ Wet Wipes ✓ Paper Cups ✓ Paper Plates Creating a better tomorrow 10
Slide 11: Backward Integration, Highest Retail Reach in the Category
BACKWARD HIGHEST RETAIL REACH IN INTEGRATION THE CATEGORY State of the art manufacturing & conversion Reach up to 288 town facility Urban & Rural Capital Investment to stay ahead of the market 60,000 Retail Outlets In House R&D leading to market agility Automated Sales System Creating a better tomor
Slide 12: Innovation & Renovation - 2019
Innovation & Renovation -2019 18 GSM Change in Single Ply Perforation Size to Table & give ease to Renovation Renovation of Luxury Facial into Relives stuffy Coffee customer pocket pack Napkins for 3 Ply Ultra Soft noses McDonalds Lotionised Tissue Luxury 3 PLY pocket ZZOOP Menthol Pack Napkins Faci
Slide 13: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 13
Slide 14: Financial Highlights
Financial Highlights Financial Year 2019 2018 % Change (Rupees in million) Net Sales from Operations 22,916 20,699 11% EBITDA- operations 2,720 1,769 54% Depreciation & amortization (830) (755) EBIT – operations 1,890 1,014 86% Finance costs (1,056) (525) 101% Other operating income / (expenses) – n
Slide 15: Financial Highlights
Financial Highlights Quarter Ended Q1 2020 Q1 2019 % Change (Rupees in million) Net Sales from Operations 6,413 5,772 11% EBITDA- operations 889 752 18% Depreciation & amortization (222) (200) EBIT – operations 667 552 21% Finance costs (301) (206) 46% Other operating (expenses) – net (46) (41) 12%
Slide 16: Financial Highlights
Financial Highlights Net Sales - PKR Million EBITDA - PKR Million 22,916 2,720 20,700 2,497 2,427 17,894 2,277 16,025 16,839 1,769 6,413 889 2015 2016 2017 2018 2019 Q1 2020 2015 2016 2017 2018 2019 Q1 2020 Investment Income - PKR Million Earnings per share - PKR 6,472 6,274 69 63 3,029 37 2,618 30
Slide 17: Financial Highlights
Financial Highlights Debt / Equity Ratio % Working Capital - PKR Million 19% 18% 18% 8 7 5 4 5 6 15% 4,917 5,143 14% 13% 96 3,674 95 95 2,729 94 2,662 93 2,300 92 2015 2016 2017 2018 2019 Q1 2020 2015 2016 2017 2018 2019 Q1 2020 Equity Debt Working Capital % Age to Sales Dividend per Share (PKR) Sha
Slide 18: Our Investment Portfolio
OUR INVESTMENT PORTFOLIO Packages Limited 54.98% 75.16% 79.07% 100% 100% 10.61% 33.33% 8.05% 50% Packages Anemone Bulleh Shah Nestle DIC Pakistan Packages IGI Holdings Tripack Films Lanka (Pvt) Holdings Packaging Pakistan Omya Pack Limited Real Estate Limited Limited Limited Limited (Pvt) Ltd Limite
Slide 19: DIC Pakistan
DIC PAKISTAN OUR PRODUCTS 55% ROTOGRAVURE INKS FLEXOGRAPHIC INKS Joint Venture DIC GLOBAL NET SALES (19 Vs 18) EBIT (19 Vs 18) Rs 5.2B Vs Rs 4.4B Rs 679M Vs Rs 515M SHEET FED OFFSET INKS 18% 32% Creating a better tomorrow 19
Slide 20: Bulleh Shah Packaging
BULLEH SHAH PACKAGING OUR PRODUCTS 100% Subsidiary CORRUGATED PAPER BOARD CARTONS Bulleh Shah Packaging NET SALES (19 Vs 18) EBIT (19 Vs 18) Rs 26B Vs Rs 22B Corrugated Packaging Paper & Board Rs 1.2B Vs Rs 0.1B 18% 100,000 tons 240,000 tons Karachi Kasur Creating a better tomorrow 20
Slide 21: Tri-Pack Films
TRI-PACK FILMS OUR PRODUCTS 33% Associate NET SALES (19 Vs 18) EBIT (19 Vs 18) ▪ Transparent Lamination Rs 14.7B Vs Rs 13.2B Rs 702M Vs Rs 689M Grade ▪ Plain Film ▪ Metallizable Heat ▪ Composite 11% 2% Sealable ▪ Cigarette Grade ▪ Metallized Heat Sealable ▪ Pearlized ▪ White Opaque Heat ▪ Metalized
Slide 22: Flexible Packages Convertors – South Africa
FLEXIBLE PACKAGES CONVERTORS – SOUTH AFRICA OUR HARDWARE & PRODUCTS 55% Subsidiary ▪ 6 Coex extrusion ▪ Shrink Film NET SALES (19 Vs 18) EBIT (19 Vs 18) machines ZAR 542M Vs ZAR 535M ZAR 24M Vs ZAR 31M ▪ 2 Monolayer extrusion ▪ Bread Bags ▪ 2 printing machines ▪ Refuse Bags 23% upto 10 colors 1% ▪ 1
Slide 23: Packages Lanka – Sri Lanka
PACKAGES LANKA – SRI LANKA OUR HARDWARE & PRODUCTS 79.09% Subsidiary ▪ Coex Extrusion ▪ Tea Bags EBIT (19 Vs 18) ▪ Roto graphic Printing NET SALES (19 Vs 18) ▪ Lamination ▪ Biscuits & Snacks LKR 2.3B Vs LKR 2.4B LKR 108M VS LKR 198M ▪ Slitting & Bag Making ▪ Confectionary 45% ▪ Detergents ▪ Dairy Cr
Slide 24: Omya Pack Pakistan
OMYA PACK PAKISTAN OUR PRODUCTS Started Operations in 50% Joint Venture 2018 OMYA Calcium Carbonate Dry Process SWITZERLAND Wet Process Creating a better tomorrow 24
Slide 25: Packages Real Estate
PACKAGES REAL ESTATE 75.16% Subsidiary RENTAL (19 Vs 18) EBIT (19 Vs 18) Rs 2B Vs Rs 1.9B Rs 1.2B Vs Rs 0.7B 5% 71% Inaugurated Area >200 2017 1.3M sqft Shops Creating a better tomorrow 25
Slide 26: Impact of COVID-19 on Packages Mall Operations
IMPACT OF COVID-19 ON PACKAGES MALL OPERATIONS Creating a better tomorrow 26
Slide 27: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 27
Slide 28: Strategic & Operational Developments
Corporate Reorganisation Strategic & Operational Developments 28 Creating a better tomorrow
Slide 29: Strategic & Operational Developments
Corporate Reorganisation Strategic & Operational Developments 29 Creating a better tomorrow
Slide 30: Important Disclaimer
Important 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 Packages Limited (Packages) solely for information purposes. No representation or warranty express or implied is made there to, an
Slide 31: Questions & Answers
Questions & Answers Creating a better tomorrow 31