Lucky Core Industries Limited · PSX:LCI
Lucky Core Industries — ICI Pakistan — Investor Presentation (August 2019)
45 slides from Lucky Core Industries's investor presentation, Aug 28, 2019
Slide 1: Corporate Briefing
February 20, 2019 Corporate Briefing August 28, 2019 Karachi 1
Slide 2: YBG: Unleashing the True Potential of ICI Pakistan Limited
YBG: Unleashing the True Potential of ICI Pakistan Limited ❑ ICI has over 70 years of presence in Pakistan and predates to the formation of the Country. This year, ICI Pakistan Limited is celebrating 75th year of its existence. ❑ Formerly part of British industrial giant ICI PLC UK which ICI’s prese
Slide 3: The History of ICI Pakistan Ltd.
The History of ICI Pakistan Ltd.
Slide 4: Yunus Brothers Group
Yunus Brothers Group ❖ Founded in 1962, YBG is a prominent industrial conglomerate in Industries YBG Serves Pakistan with aggressive domestic and international investments • Textiles ❖ More than USD 3.0bn worth of assets • Construction ❖ YBG has a strong financial and performance track record • Chem
Slide 5: YBG – Robust Financial Performance from 2012 to 2018
YBG – Robust Financial Performance from 2012 to 2018 Net Profit & EBITDA Total Assets & Market Capitalization (USD Million) (USD Million) 500 5,000 417 4,341 396 400 346 4,000 335 3,494 310 2,980 300 269 2,833 2,822 235 253 3,000 2,435 2,379 227 3,046 203 203 182 1,732 200 163 2,000 141 1,149 2,078
Slide 6: Commitment to HSE&S: Cornerstone to our Operations
Commitment to HSE&S: Cornerstone to our Operations + 24 million man hours without injury (+19 million by Soda Ash Business)
Slide 7: ICI - Integrated part of Economic Fabric
ICI - Integrated part of Economic Fabric • Diversified business & product Soda Ash portfolio catering the needs of every Polyester industry in the country Life Sciences • Strong reputation Chemicals for excellent quality & customer Infant Nutrition service
Slide 8: Our Businesses
Our Businesses Polyester Soda Ash 8
Slide 9: The iconic Soda Ash Business
The iconic Soda Ash Business ICI Pakistan Limited remains synonymous with quality and longevity since 1944 Production capacity Ideal location in terms of 425,000 tons per of access to major raw annum and operating materials – both salt and at almost 100% limestone capacity utilization with another 7
Slide 10: Diverse Usage Across Multiple End-Use Segments
Diverse Usage Across Multiple End-Use Segments The Soda Ash Industry is expected to continue its strong growth as Downstream industries grow
Slide 11: Soda Ash Business Performance
Soda Ash Business Performance Revenue (PKR Bn) 16.54 12.5 10.8 11.0 10.1 9.0 4.1 6 MONTHS FY FY FY FY FY 2018-19 2013 2013-14 2014-15 2015-16 2016-17 2017-18 EBITDA (PKR Bn) 5.32 4.1 4.2 3.9 3.2 2.6 1.0 6 MONTHS 2013 FY FY FY FY FY 2018-19 2013-14 2014-15 2015-16 2016-17 2017-18
Slide 12: Polyester Business
Polyester Business
Slide 13: Pioneer in Polyester Manufacturing in Pakistan
Production capacity Pioneer In Polyester 135,400 tons per Second Largest Strong Safety & Manufacturing In annum and Domestic Player Environment Record Pakistan operating at full capacity utilization Excellent Reputation Strong Technology Strong Management For Customer Captive Power Partner Capabilit
Slide 14: Polyester Business Results
Polyester Business Results Revenue (PKR Bn) 23.6 18.8 18.2 15.9 13.4 14.4 9.5 6 MONTHS 2013 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 EBITDA (PKR Bn) 0.96 0.98 0.5 0.4 0.2 0.1 (0.1) 6 MONTHS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2013 Note: Polyester includes PowerGen profit as well
Slide 15: Life Sciences Business
Life Sciences Business Pharmaceuticals Animal Health
Slide 16: Pharmaceuticals
TRANSFORMING Pharmaceuticals TO IMPROVE LIVES
Slide 17: Manufacturing Footprint
Manufacturing Footprint 3 Manufacturing Sites 1 Nutraceuticals Unit 2 Pharmaceuticals Units Producing HATTAR PLANT 69,000,000 Units Annually Certifications: Hattar Plant HB Plant Nutra plant GMP Certified GMP Certified ISO Certified 9001:2015 issued by DRAP issued by DRAP One year validity Expiry: 0
Slide 18: Capability to manufacture multiple dosage forms
We have the capability to manufacture multiple dosage forms at our facilities HATTAR PLANT Powder for Injection: Liquid Injectables: Orals: • Cephalosporins Both Aseptic and • General Tablets • Oral Penicillins( Capsules/ Dry • Carbapenems terminally sterile • General Capsules Syrups/ Tablets) • Pen
Slide 19: Regulatory function: registrations and licensing
Our regulatory function is equipped to meet the registration and licensing needs of the Pharmaceuticals business 450 Registrations 2 DMLs & 1 Enlist 24 Enlistments Hawkesbay and Hattar Plants Nutra Plant Validity of DML is 5 Years for Pharma Plants ICI Validity Status: • Hattar Plant: DML Valid till
Slide 20: Animal Health Business
ICI PAKISTAN LTD. Animal Health Business
Slide 21: Animal Health Business Footprint
Animal Health Business Footprint Animal Health Division - Industry Presence 3 Manufacturing Operations 1,670,000 Units Bovine Poultry Livestock Genetics 15,000 MT Silage 990,000 Bags Vanda Annually Commercial Small Dairy Commercial Corporate Dairy Artificial Institutions Broiler/ Layer Holdings Dair
Slide 22: Grow by leveraging our Core Competencies
Grow by leveraging our Core Competencies Brand Equity Optimum market access Technical Excellence and Quality - Top-of-mind recall - 15,000 farmers reached monthly - Highly trained and technically - one-stop solution - 6,000 vet. professionals reached monthly proficient salesforce provider - 500 Bree
Slide 23: Life Sciences Business Results
Life Sciences Business Results (PKR Bn) (PKR Bn) Pharma - NSI AH - NSI 6.6 6.32 4.9 4.3 4.7 3.73 3.8 2.7 3.1 3.5 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 (PKR Bn) EBITDA - LS 1.6 1.1 0.8 0.9 0.3 0.6 0.67 6 MONTHS FY FY FY FY FY 2018-19 2013 2013-14 2014-15 2015
Slide 24: Chemicals & Agri Sciences Business
Chemicals & Agri Sciences Business Polyurethane Masterbatch Textile Industrial Crops Consumer Seeds Agro Chem
Slide 25: Chemicals Business
Chemicals Business Presence in major industrial sectors Oil /Petroleum Solvents Automobiles Coating Construction Textiles Auxiliaries Footwear Polyurethanes Textiles Textiles PVAs Appliances Textiles Detergents Sports Dyes & Inks Chemicals Surgical Personal Care Sanitary Fertilizer Pharma Trading Ad
Slide 26: Agri Sciences
Agri Sciences ➢ Established brand and quality products with premium farm services ➢ Representing global seed companies, introducing premium products in Pakistan ➢ Owned seed processing & research facility at Multan ➢ Strong presence in sunflower, cotton, corn and wheat market Agri Sciences Seeds Agr
Slide 27: Masterbatches
Masterbatches Brand “Shades” launched with a promise statement Construction of Masterbatches Facility Completed. “Bringing substance to life” Commercial Operations Launched in May 2019 Launched all product variants comprising of: • Standard Colours • Specialized Colours • Additives – Antislip, Recei
Slide 28: Chemicals & Agri Sciences Business Results
Chemicals & Agri Sciences Business Results Revenue PKR Bn 7.8 8.1 7.3 5.8 Revenue 5.2 5.3 2.4 1,838 2,091 6 MONTHS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2013 EBITDA (PKR Bn) 1,923 2,227 0.8 0.77 0.6 0.7 0.5 GC SC PU Agri 0.3 0.3 6 MONTHS 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2013
Slide 29: Infant Milk Nutrition
Infant Milk Nutrition Trading Manufacturing NutriCo Pakistan Pvt. Ltd. ➢ NutriCo manages the import, marketing and distribution of nutrition products of ICI Pakistan Limited 51% Morinaga Milk Industry Co., Ltd. in Holding Pakistan Morinaga ➢ We have a strong focus on increasing our Manufacturing Mor
Slide 30: NutriCo Morinaga Project
NutriCo Morinaga Project NutriCo Morinaga is a project of setting up a plant to manufacture infant milk formula products Plant capacity is expected to be 12,000 tons per annum. Currently, shipments of plant and machinery have been arrived and the plant is installed. Trial runs of project have been s
Slide 31: Financial Results
Financial Results ICl PAKISTAN LTD.
Slide 32: Top Line Performance
Top Line Performance Net Revenue PKR Bn 8.11 7.83 11.11 7.30 11.47 5.20 5.25 5.84 5.20 6.27 9.05 16.54 6.85 8.99 12.55 10.13 10.84 11.04 18.84 23.64 15.87 13.43 14.39 18.16 2014 2015 2016 2017 2018 2019 PEPG SA LS Chem
Slide 33: Key Highlights – For the Year Ended June 30, 2019
Key Highlights – For the Year Ended June 30, 2019 (Consolidated) Net Turnover Gross Profit Operating Result 19% 8% 7% June 30, 2019 Jun 30, 2018 June 30, 2019 Jun 30, 2018 June 30, 2019 Jun 30, 2018 59,382 49,992 9,745 8,987 4,943 4,602
Slide 34: Consolidated - Comparison Vs. Last Year
Consolidated - Comparison Vs. Last Year Net Turnover Operating Result 59,382 4,602 4,944 49,992 GC JVCo 8,104 287 705 GC 428 7,817 LS 11,111 1,434 LS 11,473 SA SA 16,538 2,747 3,631 12,547 PEP PEPG G 23,629 141 182 18,156 Jun 18 Jun 19 7,076 EBITDA 7,654 767 336 586 1,567 JVCo GC 5,320 4,217 LS SA 9
Slide 35: Financial Performance
Financial Performance EBITDA EPS 8.0 45.0 7.7 7.0 35.5 40.0 35.5 35.0 6.0 30.0 5.0 24.6 29.6 27.3 25.0 4.0 19.9 20.0 3.0 15.0 P&L 2.0 EBITDA PKR Bn 10.0 EPS PKR 1.0 8.2 5.0 0.0 0.0 FY 2013 (6m) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 MV of Equity PKR Bn Dividend Per Share PKR Bn 120 20 18 10
Slide 36: ICI Share Price
ICI Share Price 50,000 1,000 45,000 790 900 40,000 33,902 800 35,000 40,346 700 30,000 600 25,000 500 532 20,000 400 15,000 300 10,000 200 5,000 100 - - PSX 100 Index Share Price (ICIP)
Slide 37: HR Fact File
HR Fact File Average >1489 6.57yrs employee tenure Passionate people! 7300 23 Animal Health USD 210,782 Candidates applied Graduate Recruits Hired 15% 11% Revenue per employee Chemicals 12% 18% Head Office 8% 35% 1% Morinaga Pharma Polyester 25% 6.2% Women in Women in Soda Ash Executive team Workfor
Slide 38: HR Excellence
HR Excellence Strong ownership of Company Values and deep rooted Company association Hiring the Best Enviable high-performance talent pool with cross Businesses & Functional exposure Learning culture built on capability enhancement Nurturing & opportunities Development Cutting edge strategically ali
Slide 39: CSR - Our Approach
CSR - Our Approach 18 ongoing projects > 250k Beneficiaries every year 30 million annual funding “We believe that through direct and indirect social contributions to the communities that we operate in, we can create real value for people, as well as demonstrate our respect for them”. 39
Slide 40: Key Projects
Key Projects Hamqadam Community Free monthly eye camps Clean water supply to Khewra Ladies Welfare Centre Clinic • 7000+ children monitored for immunisation and nutrition • 300+ eye camps organized • 216,000+ litres of free, clean water • Established 1973 • 1700+ awareness sessions for • 155,000+ OP
Slide 41: Employee Engagement – Pehchan Programme
Employee Engagement – Pehchan Programme 400+ volunteers 1150+ hours Urban Forest – Karachi SOS village - Lahore Tree plantation – Tree plantation 14th August celebration Sheikhupura NutriCo 41
Slide 42: Continued Investments…!
Continued Investments…! Acquisition by YBG December 2012 ICI PEPG SA LS GCA Nutraceutical Manufacturing facility PKR Seeds Processing Plant Launch of new corporate Coal fired heaters at PE Coal fired boilers 1&2 at 61m PKR 9m Nov 2013 identity Aug 2013 PKR 0.8b June 2014 SA PKR 2.5b Dec 2013 Nov 201
Slide 43: Foreign Investment – Expression of Interest
Foreign Investment – Expression of Interest • ICI Pakistan Limited has attracted “an expression of interest from a foreign financial institution to inject up to PKR 7 billion as growth capital through a convertible debt instrument”. • The Transaction is subject to completion of satisfactory due dili
Slide 44: ICI Pakistan – Global & Local Recognition
ICI Pakistan – Global & Local Recognition Gallup Great Workplace Asia’s Most Influential ICAP-ICMA 2018 awards: Second prize for “Best Award 2018 & 2019 Companies 2019 Sustainability Report” and third prize in the “Best Annual Report” category ICI Pakistan Ltd is the ONLY company from Pakistan to wi
Slide 45: ICI Pakistan Ltd.
& ICI PAKISTAN LTD.