Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — 9M 2020 Earnings Presentation
22 slides from Fauji Fertilizer's earnings presentation, Oct 29, 2020
Slide 1: Corporate Briefing
Corporate Briefing For the period ended September 30, 2020 October 29, 2020
Slide 2: Financial Review, Business Expansion, Future Outlook, Q&A
Financial Business Future Questions & Review Expansion Outlook Answers September 30, 2020 session
Slide 3: Business Environment
Business Environment The year 2020 started with balanced urea market conditions with low inventories Selling prices of urea were reduced in response to the reduction in GIDC rates by the Government Prices of urea were reduced despite significant absorption by Company, for the benefit of farming comm
Slide 4: Sona Urea Production – KT (Jan to Sep)
Sona Urea Production – KT (Jan to Sep) 2020 1,900 2019 1,861 2018 1,878 2017 1,928 2016 1,876 2015 1,818 2% higher vs 2019
Slide 5: Fertilizer Offtake and Turnover (Jan to Sep)
Fertilizer Offtake and Turnover (Jan to Sep) 2,500 80 73 71 68 70 2,000 301 54 337 158 135 60 58 16 45 Turnover (Rs B) 1,500 50 Offtake (KT) 46 40 1,855 1,838 1,000 1,773 1,741 1,696 30 1,597 20 500 10 - - 2015 2016 2017 2018 2019 2020 Sales Qty - Urea Sales Qty - DAP Turnover
Slide 6: Industry Urea Sales – Jan to Sep
Industry Urea Sales – Jan to Sep 2020 4,210 2019 4,390 2018 4,139 2017 4,107 2016 3,478 2015 3,938 4% lower vs 2019
Slide 7: Urea Market share – Jan to Sep
Urea Market share – Jan to Sep 2020 2019 Agritech Fatima 1% Agritech NFML 11% 3% Fatima 5% 13% FFC FFC Engro 44% 41% 35% Engro 31% FFBL FFBL 9% 7% 4,210 Kt FFC+FFBL: 53% 4,390 Kt FFC+FFBL: 48%
Slide 8: Urea Inventory – September
Urea Inventory – September FFC+FFBL 6% 29kT 7% 22% 32kT Engro 101kT 12% 53kT 29% 136kT Fatima Grp 28% 130kT Agri Tech 2020 2019 30% NFML 130kT 22% 44% 104kT 200kT 0.46 Million Tonnes 0.47 Million Tonnes FFC+FFBL: 101 KT FFC+FFBL: 136 KT
Slide 9: Urea International vs Local Prices
Urea International vs Local Prices 3,200 2,940 2,990 2,660 2,730 2,670 2,630 2,700 2,620 2,500 2,430 2,320 2,310 Rs / bag 2,200 1,990 1,790 1,700 1,690 1,700 1,592 1,617 1,200 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-2
Slide 10: DAP Market Share – Jan to Sep
DAP Market Share – Jan to Sep 2020 2019 FFC Pvt. Imp. FFC Pvt. Imp. 10% 10% 14% Fatima Grp 14% Fatima Grp 13% 13% FFBL Engro FFBL Engro 41% 24% 39% 22% 1,365 Kt FFC+FFBL: 51% 1,165 Kt FFC+FFBL: 53% 2020 Estimated
Slide 11: Profitability – Jan to Sep
Profitability – Jan to Sep PAT Rs 13.76 10% billion PAT Rs 12.47 EPS billion Rs 10.82 2020 EPS Rs 9.80 2019
Slide 12: Key Performance Indicators – Jan to Sep
Key Performance Indicators – Jan to Sep Gross Profit Operating Profit Rs in Million Rs in Million Actual 2020 23,160 Actual 2020 17,506 Actual 2019 21,632 7% p Actual 2019 15,797 11% p Net Profit Earnings per share Rs in Million Rs per share Actual 2020 13,764 Actual 2020 10.82 Actual 2019 12,468 10
Slide 13: Profitability – Rs in Billion (Jan to Sep)
Profitability – Rs in Billion (Jan to Sep) 13.76 12.47 9.14 8.90 4.26 3.70 3-Months 6-Months 9-Months 2020 2019
Slide 14: Corporate Awards and Achievements
Corporate Awards and Achievements “Overall top Position” 2019 in ICAP/ ICMAP Management Best Corporate Excellence Report Awards Winner of Award (13th Overall top ICAP/ICMAP 2019 (6th “Best Consecutive Position) Sustainability Year) by MAP Report Award” 2019 – 5th time
Slide 15: GIDC - Supreme Court of Pakistan's judgement
GIDC - Supreme Court of Pakistan’s judgement Decision & Follow-up Financial Impact • Supreme Court (SC) • Suit filed with Sindh High • FFC - single largest declared GIDC Act, 2015 Court (SHC) against contributor of GIDC – as valid collection of GIDC before Rs 73 billion factual determination • GIDC
Slide 16: GIDC Charge and Payments – Jul 31, 2020
GIDC Charge and Payments – Jul 31, 2020 Rs in Billion Fertilizer All FFC Industry Sectors GIDC Charged 136 292 752 Paid 73 128 295 Balance 63 164 457 Percentage of total payment by FFC 25% Percentage of total payment by the Fertilizer Industry 43%
Slide 17: Impact of COVID-19 on Company Operations
Impact of COVID-19 on Company Operations • Health and safety – FFC’s priority since the outbreak 2nd wave of the pandemic • Appropriate planning • COVID-19 cases on the against COVID-19 was in rise again in the place COVID-19 Country • Company thus far not been • The Company fully impacted by COVID-
Slide 18: Equity injection in FFBL
Equity injection in FFBL Right share • FFBL made right share offer to reduce debt levels issue & manage working capital • FFC’s share amounts to 178 million shares • In the process of issuing valuing Rs 2.5 billion 38% of their existing capital • BOD recommended this offer and EGM • Offer price – Rs
Slide 19: Business Expansion
Business Expansion FWEL FFBL also plans to divest its stake in: I & II • FWEL-I & FWEL-II are profitable projects • Foundation Wind Energy Limited – I • FFC being the pioneer (FWEL-I) has the necessary skills • Foundation Wind to create synergies Energy Limited – II • FFC intends to evaluate (FWEL-I
Slide 20: Future Outlook & Challenges
Future Outlook & Challenges Undue onus on the industry for Persistent pricing pressure from registration of dealers under Government to pass on the Sales Tax Act inflationary and other impacts Expected increase in wheat support prices – improved farm economics Future Outlook Increase in cost due to
Slide 21: Questions & Answers Session
Questions & Answers Session
Slide 22: THANK YOU
THANK YOU
Fauji Fertilizer Company — 9M 2020 Earnings Presentation on 6ix