Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — FY2020 Earnings Presentation
22 slides from Fauji Fertilizer's earnings presentation, Feb 9, 2021
Slide 1: FFC holds Corporate Briefing for the year ended December 31, 2020
FFC holds Corporate Briefing for the year ended December 31, 2020 Fauji Fertilizer Company (FFC), held its first Corporate Briefing for the year 2021, as a part of its best corporate governance practices. FFC has been recognized by Pakistan Stock Exchange (PSX) as first amongst Top 25 Companies cons
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Slide 3: Corporate Briefing for the year ended December 31, 2020
Corporate Briefing For the year ended December 31, 2020 February 9, 2021 01 02 03 04 Financial Expansion & Future Questions & Review Diversification Outlook & Answers December 31, 2020 Challenges session
Slide 4: Business Environment
Business Environment The year 2020 started with balanced urea market conditions with low inventories Prices of urea were reduced, after decrease in GIDC, despite significant absorption by Company, for the benefit of farming community COVID-19 negatively impacted economic environment The interest rat
Slide 5: Farm Economics
Farm Economics Market Av. Yield Market Price Expenses Net Income Av. Yield Price Expenses Net Income (Mds/Acre) Rs. / Mond Rs. / Acre (Mds/Acre) Rs. / Mond Rs. / Acre 2017-18 25 2,930 54,500 18,800 2016-17 42 1,210 29,200 21,500 2018-19 23 3,680 61,000 23,600 2017-18 41 1,200 31,200 18,000 2019-20 2
Slide 6: Sona Urea Production
Sona Urea Production 000’ MT 2020 2,487 2019 2,492 2018 2,522 2017 2,513 2016 2,523 2015 2,469
Slide 7: Fertilizer Offtake and Turnover
Fertilizer Offtake and Turnover 3,500 106 106 110 98 3,000 85 526 91 90 73 503 212 253 253 2,500 181 70 Turnover (Rs B) Offtake (KT) 2,000 50 2,697 1,500 2,527 2,512 2,467 2,428 2,408 30 1,000 500 10 - (10) 2015 2016 2017 2018 2019 2020 Sales Qty - Urea Sales Qty - Imp. Fert. Turnover
Slide 8: Industry Urea Sales
Industry Urea Sales 000’ MT 2020 6,038 2019 6,230 2018 5,810 2017 5,816 2016 5,500 2015 5,585 3% lower vs 2019
Slide 9: Urea Market share
Urea Market share Agritech Agritech NFML 2% 2020 3% 2019 5% Fatima Fatima 13% 12% FFC FFC 42% 40% Engro Engro 34% 32% FFBL FFBL 9% 8% 6,038 KT FFC+FFBL: 51% 6,230 KT FFC+FFBL: 48%
Slide 10: Urea Inventory share
Urea Inventory share FFC FFBL 2020 2019 1% 0% Agritech FFBL 1% Agritech FFC 0% Fatima 9% 14% 14% Engro 14% Engro Fatima 84% 63% 288 KT FFC+FFBL: 1% 200 KT FFC+FFBL: 14%
Slide 11: DAP Market Share
DAP Market Share 2020 2019 FFC FFC 10% Pvt. Imp. 12% Pvt. Imp. 17% 23% Fatima Fatima FFBL 12% FFBL 9% 41% 34% Engro Engro 17% 25% 2,256 KT FFC+FFBL: 51% 2,030 KT FFC+FFBL: 46% (1,159 KT) (925 KT)
Slide 12: Key Performance Indicators
Key Performance Indicators Rs. M Actual 2020 31,583 Change % Actual 2020 23,735 Change % Actual 2019 30,737 3 p Actual 2019 22,449 6 p Actual 2018 27,978 13 p Gross Operating Actual 2018 19,145 24 p Profit Profit Net EPS Actual 2020 20,819 Change % Profit (Rs / Share) Actual 2020 16.36 Change % Actu
Slide 13: Profitability
Profitability Rs Billion 20.82 17.11 13.76 12.47 Quarterly 9.14 8.90 Profitability 4.26 3.70 3-Months 6-Months 9-Months 12-Months 2020 2019
Slide 14: Update on GIDC
Update on GIDC • Payment term extended to 48 equal monthly installments instead of 24, • Temporary accounting as a result of Review Petition gain amounting Rs 5.93 filed before the Supreme billion on Court of Pakistan extinguishment and re- • Suit filed with Sindh High GIDC measurement of GIDC Court
Slide 15: GIDC Payable
GIDC Payable Rs B 2020 2019 GIDC Payable (62.64) (61.06) Income against GIDC liability / reversal in (2021 - 2024) 5.93 (56.71) (61.06) Current portion (23.94) (61.06) Long term (32.77) - (56.71) (61.06)
Slide 16: Expected Credit Loss – Subsidy Receivable
Expected Credit Loss – Subsidy Receivable Subsidy Receivable • Considerable delay in Subsidy Receivable subsidy settlement by the Rs B Government Total receivable 7.32 • Receivable stood at Rs 7.32 billion at the end of 2020 Loss allowance (0.98) • Expected Credit Loss of Rs 987 million recognized u
Slide 17: Impact of COVID-19 on Company Operations
Impact of COVID-19 on Company Operations • Health and safety have been FFC’s priority since outbreak of the pandemic • Effective workplace management including manpower, IT support • Successful negotiations with the etc. Govt. to allow uninterrupted manufacturing and fertilizer • Company operations
Slide 18: Corporate Awards and Achievements
Corporate Awards and Achievements “Overall top Position” 2019 First Position in in ICAP/ICMAP PSX Top 25 Best Corporate Companies Report Awards Award (13th Overall top Position) Winner 2019 – 10th Manufacturing consecutive year Sector in SAFA Best Presented Annual Winner of Report competition Manage
Slide 19: Expansion & Diversification
Expansion & Diversification TEL FFF Further Equity Equity FWEL I & II Investment of injection of Evaluating the USD 14.4 M in Rs 1.5 billion acquisition of 2021 onwards majority stake FFBL OLIVE Equity Incorporated injection of to provide Rs 2.49 technical billion services
Slide 20: Future Outlook & Challenges
Future Outlook & Challenges 3 Business expenditure 6 Discharge of GIDC liability would 1 disallowance by FBR resulting in pressurize working capital of the cost escalation Company. The ongoing Pandemic continues to pose threat to Future Outlook overall economy 4 Depleting gas reserves. 7 Continued d
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Slide 22: Thank You
THANK YOU
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