Lotte Chemical Pakistan Ltd. · PSX:LOTCHEM

Lotte Chemical Pakistan — Investor Presentation (November 2019)

16 slides from Lotte Chemical Pakistan's investor presentation, Nov 21, 2019

  1. Slide 1: LOTTE Chemical Pakistan Limited Corporate Briefing Session

    LOTTE Chemical Pakistan Limited Corporate Briefing Session 21.11.2019 1

  2. Slide 2: Vision and Mission

    VISION MISSION We enrich people’s lives by providing superior products and services that our customers love and trust 2

  3. Slide 3: More than Chemistry: LOTTE ranked in Asia's Top 1000 Brands

    More than Chemistry LOTTE ranked 16* in Asia’s Top 1000 Brands campaign Rank Brand Category Rank F&B Korea Japan Vietnam 1 Samsung Electronics 1 Nestlé Samsung Panasonic Samsung 2 Apple Electronics LG Sony Nestlé 3 Sony Electronics 3 Meiji Chanel Apple Sony 4 Nestle Foods 4 Cadbury Meiji Apple 5 Pan

  4. Slide 4: LOTTE is the 5th largest group in Korea

    More than Chemistry LOTTE has grown to be the 5* largest group in Korea Recent M&A (2009~2017) FY 2009 FY 2010 FY 2011~2013 FY 2015 r Doosan Liquor UKLCUK = Russia Hotel (St. Petersburg) . » Pakistan PTA * Buy The Way (CVS) ‘ oe oe Teh + KT Rental (Preferred Bidder) / * Indonesia MAKRO * GS Dept Sto

  5. Slide 5: Our Mission

    Our Mission To be the supplier of choice to PTA customers in Pakistan and to maximize long- long-term business value 5

  6. Slide 6: LCPL - Corporate History

    LCPL - Corporate History  ICI PTA Established in 1995  Acquisition by LOTTE in 2009 ICI announced PTA plant in Pakistan Co-Generation ((42MW)) Inaugurated PTA Plant Merged with LOTTE Inaugurated and (75% acquisition) Production → LOTTE Pakistan Sta ted Started PTA Ltd (LPPTA) Sepa at o from Separa

  7. Slide 7: LCPL – Location and Site

    LCPL – Location and Site  LCPL is located 50 Km from Karachi  LCPL is located 8Km from Port Qasim NWFP JAMMU & KASHMIR Peshawar  Major Cities North Zone Islamabad Rawalpindi  LCPL Site Total Area 150 acres  LCPL    Customers   Lahore  LCPL Plant occupies 50% area PUNJAB  50% available fo

  8. Slide 8: Completed 21 years of operations, 10 years with LOTTE

     Completed 21 years of operations (1998-2019)  Completed p 10 yyears with LOTTE ((2009-2019))  Excellent Safety record : 58 million manhours without injury p  Excellent Operations and highly g y skilled workforce  100 % domestic market  Raw Raw-Material Material available in close by region 8

  9. Slide 9: LCPL - Business Scope

    LCPL - Business Scope  LCPL is i the h only l producer d off PTA iin Pakistan: ki Capacity i 500 KT/Year  LOTTE Chemical holding 75.01%  PTA is key raw material for Textile and Packaging Industry CRUDE OIL HEAVY NAPTHA PARAXYLENE PTA MEG POLYESTER POLYMER FILMS/RESIN PET CHIPS STAPLE FIBER FILAME

  10. Slide 10: Pakistan PTA Market

    Pakistan PTA Market  Market witnessed healthy growth during 2015-2018  Future PTA expansion depends primarily on demand growth and downstream expansion  LCPL has an advantage of infrastructure and experienced team for future expansion 000 MT 1,000 94% 93% 100% PET 89% 900 Expansion 90% PSF 81% 79

  11. Slide 11: PTA Market - Margins

    PTA Market - Margins USD / MT USD / MT 1,200 300 1,000 250 800 200 600 150 400 100 200 50 0 0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 PTA Margin Spot PX (NE (NE.Asia) Asia) PTA (CFR China) Source: ICIS and Platts 11

  12. Slide 12: PTA Regional Balance

    PTA Regional Balance 000 MT 100,000 100% 86% 86% 90,000 , 90% 80% 79% 81% 79% 78% 80,000 75% 80% 70,000 70% 60,000 60% 50,000 50% 40,000 40% 30,000 30% 20,000 20% 10,000 10% 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 PTA Capacity PTA Requirement Operating Rate Source: PCI 12

  13. Slide 13: Statement of Profit or Loss

    Statement of Profit or Loss Rs. ‘000 Quarter ended Nine months ended 30 Sep 2019 30 Sep 2018 30 Sep 2019 30 Sep 2018 Revenue - net 14,427,608 16,444,852 47,617,270 42,140,134 Cost of sales (12,052,243) (13,508,256) (40,762,139) (36,369,351) Gross profit 2 375 365 2,375,365 2 936 596 2,936,596 6 855

  14. Slide 14: Statement of Financial Position

    Statement of Financial Position (Rs 000) 30 Sep 2019 31 Dec 2018 30 Sep 2019 31 Dec 2018 (Un-audited) (Audited) (Un-audited) (Audited) Assets Equity and liabilities Non-current assets Share capital and reserves Fixed assets 4,693,789 5,142,935 Issued, subscribed and paid-up capital 15,142,072 15,142

  15. Slide 15: Partnership with Pakistan

    Partnership with Pakistan  LOTTE is actively participating in activities to serve Pakistan  Regular medical/eye camps for the neighboring communities - 12 times during past 3 years (quarterly)  20 Students are being sponsored in TCF Schools since 2017  12 ‘Special’ Children are being sponsored i

  16. Slide 16: Thank you

    Lifetime Value Creator Thank you 16

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