Security Papers Limited. · PSX:SEPL
Security Papers — Investor Presentation (May 2021)
45 slides from Security Papers's investor presentation, May 26, 2021
Slide 1: Corporate Briefing Session - Nine Months ended March 31, 2021
Security Papers LIMITED CORPORATE BRIEFING SESSION- NINE MONTHS FOR THE PERIOD ENDED MARCH 31, 2021
Slide 2: Disclaimer
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 Security Papers Limited (SPL) solely for information purposes. ▪No representation or warranty express or implied is made thereto, and no re
Slide 3: Sequence of Presentation
Sequence of Presentation Organizational Overview and Governance Shareholding Pattern Awards & Certifications CSR Initiatives COVID-19 Management Initiatives Operational Performance Financial Highlights Strategic/Operational Developments Future Outlook / Challenges
Slide 4: Organizational Overview and Governance
ORGANIZATIONAL OVERVIEW AND GOVERNANCE 4
Slide 5: Company Profile
COMPANY PROFILE • Security Papers Limited is a national strategic industrial organization engaged in the business of manufacturing security paper for Banknotes and Other Security Paper products. • Due to its strategic nature of operations, the Company has been classified as Category 1A (KPID) Key Po
Slide 6: Board of Directors
BOARD OF DIRECTORS Non-Executive / Independent Directors Chairman Mr. Muhammad Haroon Rasheed Directors Mr. Jamal Nasim Mr. Muhammad Sualeh Ahmad Faruqui (Independent) Dr. Abolghassem Jamshidi Mr. Rauf Ahmad Mrs. Uzma Aijaz * (Independent) *Shaikh Muhammad Aijaz Akhtar (Alternate Director) Ms. Figen
Slide 7: Strategic Planning Process
Operational Strategic and Individual Objectives & Goals Annual Objectives & Goals Long term Strategic Objectives & Goals
Slide 8: Vision Statement
VISION STATEMENT “TO BE A NATIONALLY AND INTERNATIONALLY RECOGNIZED AND ACCEPTED SECURITY PAPER PRODUCING ORGANIZATION, PROVIDING HIGHEST QUALITY PAPER TO OUR CUSTOMERS, BOTH IN PAKISTAN AND ABROAD”. 8
Slide 9: Mission Statement
MISSION STATEMENT “OUR MISSION IS TO EXCEED THE EXPECTATION OF OUR CUSTOMERS IN PRODUCING, WITH SECURITY AND EFFICIENCY, HIGHEST QUALITY PAPER PRODUCTS, EMPLOYING INTERNATIONAL BEST PRACTICES AND APPLYING AN INTEGRATED APPROACH TO PRODUCT RESEARCH AND DEVELOPMENT, MANUFACTURING TECHNOLOGY, OPERATION
Slide 10: Board Committees
BOARD COMMITTEES Board of Directors Board Human Board Investment Resource and Board Board Audit and Risk Board Strategic Procurement Committee Remuneration Management Committee Committee Committee Committee 10
Slide 11: Historical Milestones
Historical Milestones • Incorporated as Private Limited Company. 1965 • Listed on the Karachi Stock Exchange (now Pakistan Stock 1967 Exchange - PSX) • Started commercial production 1969 • New Paper Machine commissioned and inaugurated by Prime 2004 Minister of Pakistan. • Reverse Osmosis (RO) Plant
Slide 12: Historical Milestones (2009-2015)
• Captive Power Plant installed 2009 • Modification and Upgradation of Rewinder and Sheeter 2011 Machines • New Mould Cover manufacturing facility installed 2012 • Automated Cotton (Comber) Dry Cleaning Plant installed 2014 • A new Thread Unwinding System installed 2015 12
Slide 13: Historical Milestones (2016-2021)
• Paper for National Passport developed and produced 2016 • Production capacity enhanced from 2500 tons to 3500 tons per annum through expansion of Pulp making Plant and enhancing operational 2018 speed of paper machine • Capacity enhancement of Paper Machine completed by utilizing in house resource
Slide 14: Our Business Model
OUR BUSINESS MODEL a .\ y yo @oxs Manufactured Capital Key Processes - . Understanding Efficient 7 ; Customers’ Needs Procurement ) S La o $3 uit it 35 | = SEMIS ° Sel = LQ — fa} Returnto Duties & Taxes ramen a nin MIKEO= 7 & mae Shareholders to Government Investments to Employees
Slide 15: Strategic Goals
STRATEGIC GOALS Customers’ Employees’ Enterprise Risk Continuous satisfaction empowerment Management and improvement Business Continuity (KAIZEN) Planning Operational Efficiency Maximum Return on Corporate Social Investment Responsibility 15
Slide 16: Strategic Objectives
STRATEGIC OBJECTIVES - Increase focus on efficiency in the production process, reduce cost and improved product quality; - Generating superior returns to stakeholders, sustainable performance exceeding market and shareholder expectations; - To be a top stakeholder value generator in the Country’s se
Slide 17: Our Products
OUR PRODUCTS Prize Bond Non Judicial Banknote Paper Paper Stamp Paper E – Stamp Paper Educational Parchment (Govt. of Certificates and Paper Punjab) Degree Paper CBS – 1 NADRA CRC Passport Paper (Cheque Paper) Paper 17
Slide 18: Our Customers
OUR CUSTOMERS PAKISTAN SECURITY PRINTING CORPORATION NATIONAL SECURITY PRINTING COMPANY GOVERNMENT OF PUNJAB NADRA UNIVERSITIES, BOARDS AND OTHER INSTITUTIONS 18
Slide 19: Management Committees
Management Committees •Executive Committee •Corporate Social Responsibility (CSR) Committee •IT Steering Committee •Enterprise Risk Management Committee •Business Continuity Plan Committee •Health & Safety Committee •Worker’s Welfare Fund Committee •Worker’s Profit Participation Fund (WPPF) Committe
Slide 20: Board's Approved Policies
Board’s Approved Policies 1) Corporate Social 11) Training & Development Responsibility Policy Policy 2) Sexual Harassment Policy 12) Employee Welfare Fund (EWF) Policy 3) Investment Policy Guidelines 13) Related Party Transactions Policy 4) Risk Management Policy 14) Communication & Disclosure 5) I
Slide 21: Shareholding Pattern
SHAREHOLDING PATTERN 21
Slide 22: Shareholding Pattern
SHAREHOLDING PATTERN As at 30 June 2020 General Public 10% PSPC Institutions 40% 30% Foreign Companies 20% PSPC Foreign Companies Institutions General Public 22
Slide 23: Awards & Certifications
AWARDS & CERTIFICATIONS 23
Slide 24: Corporate Awards
Corporate Awards Top Companies Award: • Won Top 25 Companies Award of PSX for the years 2000 to 2007 and 2009 to 2016 & 2018- 2019. Corporate Excellence Award: • Won 35th Corporate Excellence Award of the Management Association of Pakistan (MAP); • Holds 24th to 29th Awards (6 times in a row) as wel
Slide 25: Corporate Awards
Corporate Awards Commitment to Environmental Reporting: • Received Environmental Excellence Award: commendation for • Received the 17th Annual commitment to Environmental Excellence Environmental Award 2020 in recognition Reporting in 2010 from Fire & Safety Award: of Company’s effective ACCA – WWF
Slide 26: ISO Certifications
ISO Certifications Quality Environmental Occupational Management Management Health & System (ISO System (ISO Safety 9001:2015) 14001:2015) Management System (ISO 45001: 2018) 26
Slide 27: CSR Initiatives
CSR INITIATIVES 27
Slide 28: Sustainability and CSR
S U S TA I NA B I L I T Y A N D C S R ▪ Corporate Social Responsibility (CSR) is concerned with CSR Activities achieving economic success through responsible corporate governance in a company's core business. CSR motivates organizations to improve because their actions Allocated Rs. 12.6 MN Budget a
Slide 29: COVID-19 Pandemic Management Initiatives
COVID-19 PANDEMIC MANAGEMENT INITIATIVES 29
Slide 30: COVID-19 Pandemic Management Initiatives
C OV I D - 1 9 Pa n d e m i c M a n a g e m e n t I n i t i a t ive s ▪ With the advent of COVID-19 in the Country, SPL went into strict implementation of various checks & SOPs to ensure safety and protection of all its employees. ▪ The third COVID-19 pandemic had a significant impact on the entire
Slide 31: Slide 31
Slide 32: Operational Performance
OPERATIONAL PERFORMANCE FOR THE PERIOD ENDED March 31, 2021 32
Slide 33: Revenue - PKR (Million) July-March
SECURITY PAPERS LIMITED Revenue-PKR (Million) July - March 4,000 3,693 3,380 3,500 3,012 3,000 1,204 2,472 2,500 948 1,606 2,050 2,000 908 630 1,500 2,489 1,000 2,064 1,564 1,774 1,420 500 - 2017 2018 2019 2020 2021 July to Dec Jan to Mar
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED March 31, 2021 34
Slide 35: SPL's Financial Performance from 2017 to 2021
S P L’ S F I N A N C I A L P E R F O R M A N C E FROM 2017 TO 2021 JULY - MARCH PARTICULARS 2021 2020 2019 2018 2017 SALES – RS ’000 3,379,914 3,693,315 3,012,247 2,472,119 2,050,260 PROFIT AFTER TAXATION – 967,768 766,879 637,756 439,586 676,428 RS ’000 OTHER INCOME – RS ’000 478,328 227,433 117,29
Slide 36: Profitability
Profitability GP Margin NP Margin 39.93% 37.06% 36.42% 36.27% 34.33% 32.99% 28.63% 21.17% 20.76% 17.78% 2016-17 2017-18 2018-19 2019-20 2020-21
Slide 37: Ratios Analysis: Profitability
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – MARCH PARTICULARS 2021 2020 2019 2018 2017 PROFITABILITY RATIOS GROSS PROFIT TO SALES % 34% 36% 40% 36% 37% NET PROFIT TO SALES % 29% 21% 21% 18% 33% RETURN ON EQUITY % 16% 15% 13% 10% 15%
Slide 38: Ratios Analysis: Asset Management
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – MARCH PARTICULARS 2021 2020 2019 2018 2017 ASSET MANAGEMENT TOTAL ASSETS 44% 57% 50% 44% 37% TURNOVER % INVENTORY TURN OVER 66 52 54 85 99 RATIO-DAYS DEBTORS TURNOVER 34 42 59 52 38 RATIO-DAYS CREDITOR TURNOVER 23 25 23 26 17
Slide 39: Ratios Analysis: Liquidity, Debt and Market
S E C U R I T Y PA P E R S L I M I T E D R AT I O S A N A LY S I S JULY – MARCH PARTICULARS 2021 2020 2019 2018 2017 LIQUIDITY RATIOS CURRENT RATIO 3.89:1 3.22:1 3.31:1 4.66:1 3.75:1 QUICK RATIO 3.30:1 2.13:1 2.83:1 3.98:1 2.98:1 DEBT MANAGEMENT DEBT EQUITY RATIO 0.00:1 0.00:1 0.00:1 0.00:1 0.00:1 M
Slide 40: Strategic/Operational Developments
STRATEGIC/OPERATIONAL DEVELOPMENTS 40
Slide 41: Projects Completed during FY 2020-21
Projects Completed during FY 2020-21 Waste Water Energy Fire Alarm Conservation Gas Recycling plant New Chiller Development of Up- Project Generator Gradation, (commissioned Installed New RO Bore 1.4 MW New Fire in Aug’20) completed Hydrant & Fire Sprinkler System 41
Slide 42: Projects under Progress
Projects under Progress Pilot Project on Renewable Energy New Refiners Construction of building for Cotton Comber Storage Up-gradation of Winder machines Diesel Generator 100KW 42
Slide 43: Future Outlook / Challenges
FUTURE OUTLOOK / CHALLENGES 43
Slide 44: Future Outlook / Challenges
FUTURE OUTLOOK / CHALLENGES The COVID shock has highlighted the significance of developing a stronger and more resilient The current fiscal year is expected to continue to business, as well as strengthening local and be difficult for the business due to inflationary regional supply chains. condition
Slide 45: Thank You
THANK YOU QUESTION & ANSWERS 45