Lucky Core Industries Limited · PSX:LCI
Lucky Core Industries — ICI Pakistan — Investor Presentation (October 2021)
56 slides from Lucky Core Industries's investor presentation, Oct 7, 2021
Slide 1: ICI Pakistan Limited Corporate Briefing
ICI Pakistan Limited Corporate Briefing October 7, 2021 1
Slide 2: YBG: Unleashing the True Potential of ICI Pakistan Limited
YBG: Unleashing the True Potential of ICI Pakistan Limited ICI Pakistan’s Presence in Pakistan ICI Pakistan has over 75 years of operations in Pakistan and predates to the formation of the Country. Formerly part of British industrial giant ICI PLC UK which was acquired by Akzo Nobel N.V in 2008, a F
Slide 3: ICI Pakistan's Core Values
& ICI PAKISTAN LTD. ICI Pakistan’s Core Values @ S Customer Centricity Integrity & Responsibility Passion for People Delivering Enduring Value Innovation
Slide 4: Health, Safety, Environment & Security (HSE&S)
Health, Safety, Environment & Security (HSE&S) Objective Ensure safe operations with Zero Lost Workday Injury across businesses. COVID-19 Pandemic Watch Status Committee >40 controls broadly covering: Achieved • Communication & Engagement 35.2mn • Precautionary Measures Safe-Man Hours • Business C
Slide 5: ICI Pakistan – Building a More Sustainable Future
ICI Pakistan – Building a More Sustainable Future Through the ICI Pakistan Foundation, ICI Pakistan Limited is involved in numerous Corporate Social Responsibility (CSR) projects and initiatives that aim to support and invest in the local communities around it. The Company’s CSR programme covers fiv
Slide 6: ICI Pakistan – An Integral Part of Pakistan's Socio-Economic Fabric
ICI Pakistan – An Integral Part of Pakistan’s Socio-Economic Fabric • Diversified business and product portfolio catering to the needs of INDUSTRIES THAT every industry in the country • Strong reputation for quality and customer service ICI PAKISTAN CATERS TO Textiles Paints Appliances Construction
Slide 7: State-of-the-Art Manufacturing Plants
State-of-the-Art Manufacturing Plants Soda Ash Polyester Pharmaceuticals Animal Health Chemicals & Agri Sciences NutriCo Morinaga 7
Slide 8: Soda Ash
Soda Ash 8
Slide 9: Soda Ash Business - Synonymous with Quality and Longevity since 1944
Soda Ash Business - Synonymous with Quality and Longevity since 1944 Current production capacity Ideal location with access to of 425,000 TPA, to be major raw materials expanded by 135,000 TPA (Total capacity 560,000 TPA) Self-Sufficient in energy Close proximity to customer needs protects from impo
Slide 10: ICI Pakistan Soda Ash Exports
ICI Pakistan Soda Ash Exports 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Export Country (MT ) (MT ) (MT ) (MT ) (MT) (MT) North India India - - 20,040 23,960 23,720 26,750 1 million ton market Afghanistan 2,808 1,437 743 2,466 2,031 1,059 UAE 1,709 6,125 692 - - - Bangladesh 18,396 8,707 7,676
Slide 11: Total Investment of PKR 24.5 billion
Expansion Since YBG Acquisition 350,000 TPA Expansion Approved Expansion 425,000 TPA 1 Completed 75,000 TPA In Process PKR 5.5bn 135,000 TPA 2 PKR 11bn 75,000 60,000 TPA TPA Jun’22 Dec’22 Conversion of energy mix 560,000 TPA CFB-1&2 CFB-3&4 PKR 2.5bn PKR 3.6bn 3 Total Investment of PKR 24.5 billion
Slide 12: Soda Ash Business – Performance
Soda Ash Business – Performance Revenue EBIT 16.54 16.71 3.63 3.53 15.65 3.28 12.55 2.86 2.73 2.75 10.84 11.04 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA 5.32 5.12 4.93 4.09 4.22 3.87 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 *Amounts
Slide 13: Polyester
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Slide 14: Total production reached 135,000 tons in FY'21
Pioneer In Polyester Manufacturing Excellent Reputation for Customer in Pakistan and 2nd Largest Relationships, Product Quality and Domestic Player Technical Services Strong Technology Partner Production capacity of 122,500 (Invista – a Global Leader in the tonnes per annum and operating Sector) at
Slide 15: Textile Sector – Back Bone of Pakistan's Economy
Textile Sector – Back Bone of Pakistan’s Economy Pakistan Textile Exports (Amount in Bn $) 2020-21 15.4 2019-20 12.5 2018-19 13.3 • Textile sector has approx. 60% share in total exports of Pakistan. 2017-18 13.5 • Strong government support to drive exports through export 2016-17 12.5 refinancing sch
Slide 16: Sustainability
Sustainability Recycled Polyethylene Terephthalate (RPET) • Setting up of a unit at Sheikhupura plant to produce 100% PET Recycled chip for the manufacture of Recycled Polyester Staple Fibre has been approved by the Board. • The plant is expected to come online by the end of FY’ 2021-22. • Productio
Slide 17: Strategy Going Forward
Strategy Going Forward Future Present Focus on Export Growth • Increase the percentage of Past Develop Specialty Fibre & export volume through high Minimize Commodity Risk emphasis on customer • Terylene Clean management, brand and • AntiMicrobial specialty fibre development. • Introducing Polyester
Slide 18: Polyester Business – Performance
Polyester Business – Performance Revenue EBIT 2.95 23.64 24.39 19.96 18.16 13.43 14.39 0.96 0.98 0.76 0.47 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 (0.76) EBITDA 3.59 1.49 0.96 0.98 0.47 0.11 *Amounts in PKR billion 2015-16 2016-17 2017-18 2018-
Slide 19: Pharmaceuticals
Pharmaceuticals 19
Slide 20: ICI Pakistan's Pharmaceuticals Business Universe
ICI Pakistan’s Pharmaceuticals Business Universe Cardio Metabolic: Paeds Care: Critical Care: OVAZA SOFT GEL CAP 1000MG Ketress Syrup 15Ml Ketrodil Inj 30mg Anpra 0.5 mg Ketress Tablets 10X3'S Stanem 500mg Inj Anpra 0.25 mg Ketress Syrup 15Ml (Army) Tazopip 2.25 gm inj Anpra 0.5 mg Icef 100Mg / 5Ml
Slide 21: Post Acquisition - Manufacturing Footprint
Post Acquisition - Manufacturing Footprint 3 Manufacturing Sites 1 Nutraceuticals Unit Hattar Plant 2 Pharmaceuticals Units GMP Certified Olzap issued by DRAP Expiry: 06/05/2021 ISO Certified 9001:2015 One year validity Ceptin Zolmig Hawkes bay Plant GMP Certified 6 New issued by DRAP Expiry: 26/02/
Slide 22: Capability to Manufacture Multiple Dosage Forms
Capability to Manufacture Multiple Dosage Forms HATTAR PLANT Ampoule Carbapenem Ceph General Penicillin Psychotropic Steroid HAWKES BAY PLANT Solids (Tablet) Liquid NUTRA PLANT Tablet Sachet Syrup Soft Gel 22
Slide 23: ICI Pakistan Pharmaceuticals – Growing Faster than the Market
ICI Pakistan Pharmaceuticals – Growing Faster than the Market Key Achievements One of the fastest growing Pharmaceutical Company as per IMS Health (IQVIA) During FY21, ICI Pakistan climbed 2 places to rank as number 19 in Pakistan’s Pharmaceutical industry. IQVIA recognized MERPEN as the #1 launch o
Slide 24: Pharmaceutical Business – Performance
Pharmaceutical Business – Performance Revenue EBIT 7.81 0.84 7.38 0.74 6.88 0.72 5.70 0.55 4.31 0.44 3.76 0.19 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA 0.98 0.91 0.83 0.58 0.45 0.30 *Amounts in PKR billion 2015-16 2016-17 2017-18 2018-19
Slide 25: Animal Health
Animal Health 25
Slide 26: Animal Health Business Footprint
Animal Health Business Footprint Technical Excellence and Quality Brand Equity • Top-of-mind recall. • Trained and technically proficient salesforce. • One-stop solution provider. • Frequent educational seminars for vets & KOLs hosted. • Our Brand umbrella for Branded Generics. Manufacturing Experti
Slide 27: Market Position for FY'2020-21 - Livestock Segment
Market Position for FY’ 2020-21 - Livestock Segment Market vs ICI Pakistan Value ESTIMATED SEGMENT SIZE IN PKR growth (3 Yr CAGR) Bn Market CAGR ICI CAGR TOTAL: 39.9Bn Medicine, 97% 8.3 17% 17% 20% 9% 14% 15% 21% Silage, 3.0 Cattle Feed Silage Medicine Livestock ICI Pakistan Sales & Estimated Market
Slide 28: Market Position for FY'2020-21 - Poultry Segment
Market Position for FY’ 2020-21 - Poultry Segment ESTIMATED SEGMENT SIZE: PKR 15.5BN Value growth (3 Yr CAGR) Other, Market CAGR Nutritional, 1.88 Local 65% 0.65 Antibiotics 36% Organic Acids, 31% , 3.24 18% 19% 0.34 4% -5% 2% -8% 6% Disinfectants Antibiotics *Biologicals *Disinfectant Organic Acid
Slide 29: Animal Health – Leveraging on Presence to Achieve Scale
Animal Health – Leveraging on Presence to Achieve Scale • Strong presence in one of the most essential & important industries • Large animal population (low productivity) + strong Government focus and support • Focus on the largest segments providing profitable scale opportunities • Further strength
Slide 30: Animal Health Business – Performance
Animal Health Business – Performance Revenue EBIT 0.72 4.89 5.11 4.34 0.50 3.73 3.91 0.42 3.09 0.38 0.26 0.24 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA 0.74 0.50 0.42 0.45 0.28 0.30 *Amounts in PKR billion 2015-16 2016-17 2017-18 2018-19 2
Slide 31: Strategic International Partnerships
Strategic International Partnerships Partnerships with leading global animal health companies to bring global advancements to Pakistan. 31
Slide 32: Chemicals & Agri Sciences
Chemicals & Agri Sciences 32
Slide 33: Business Divisions - Chemicals & Agri Sciences
Business Divisions - Chemicals & Agri Sciences CHEMICALS AGRI SCIENCES MASTERBATCH 33
Slide 34: 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 35: Agri Sciences – Creating an Impact Across the Agri Chain
Agri Sciences – Creating an Impact Across the Agri Chain • Strong presence & equity in one of the most important sectors with increased government support. • Strategic Focus Areas: • Corn segment • Cotton seed • Sunflower • Hybrid Rice • Rationalize portfolio & focus on leading crops & high margin v
Slide 36: Agri Portfolio
Agri Portfolio Agri Sciences Seeds 49% Agrochemicals 51% Sunflower 53% Insecticides 66% Corn 12% Herbicides 10% Vegetable Seeds 23% Fungicides 13% Others 11% Crop Nutrients 11% 36
Slide 37: Masterbatches
Masterbatches • Brand “Shades” launched - “Bringing substance to life”. • Launched product variants, comprising of: • Standard Colors • Specialized Colors • Additives- Antislip, Antistatic, UV Stabilizer etc. • Successful sales of 1,481 tonnes during FY’ 2020-21. • Estimated 7% market share in secon
Slide 38: Key Partners
& ICI PAKISTAN LTD. Key Partners HUNTSMAN jf) OVY nN G WANHUA M eonns Enriching lives through innovatior A we TA VENATOR (0) UP L COCO DAIREN CHEMICAL CORP. Diversey Gevonu: MOMENTIVE <> @2tenungumea Gv 38
Slide 39: Chemicals & Agri Sciences Business – Performance
Chemicals & Agri Sciences Business – Performance Revenue EBIT 8.70 7.83 8.11 8.02 0.94 7.30 0.88 0.77 0.80 5.84 0.71 0.63 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA 1.05 0.92 0.81 0.77 0.66 0.34 2015-16 2016-17 2017-18 2018-19 2019-20 2020-
Slide 40: NutriCo Morinaga
NutriCo Morinaga 40
Slide 41: Infant/Growing-up Nutrition Business
Infant/Growing-up Nutrition Business ICI Pakistan Limited NutriCo Morinaga NutriCo Pakistan Private Limited Private Limited (51% Holding) (40% Holding) Locally Trading of Manufactured Imported Portfolio Portfolio 41
Slide 42: NutriCo Morinaga – Locally Manufactured Portfolio
NutriCo Morinaga Pvt. Ltd. Infant/ Growing-Up Nutrition – Locally Manufactured Portfolio • Production capacity of 12,000 tonnes per annum. • Adheres to the highest international standards, aimed at ensuring that infants and children are provided with safe, clean and hygienic formula at competitive p
Slide 43: NutriCo Pakistan – Imported Portfolio
NutriCo Pakistan Pvt. Ltd Infant/Growing-Up Nutrition – Imported Portfolio • NutriCo Pakistan manages the import, marketing, and distribution of nutrition products of Morinaga Milk Industry Co Ltd (Japan) into Pakistan. • The share of profit, recognized by ICI Pakistan, for the year was PKR 527 mill
Slide 44: Merger of NutriCo Pakistan & NutriCo Morinaga
Merger of NutriCo Pakistan & NutriCo Morinaga • Both Infant/Growing-up Nutrition businesses are to be ICI Pakistan Limited merged. • As a first step, acquisition of further 11% stake in NutriCo Pakistan Pvt Limited has been made, increasing NutriCo NutriCo Pakistan Morinaga Private the total shareho
Slide 45: Financial Results – ICI Pakistan FY'2020-21
Financial Results – ICI Pakistan FY’ 2020-21 45
Slide 46: Key Financial Highlights – FY'2020-21 (Unconsolidated)
Key Financial Highlights – FY’ 2020-21 (Unconsolidated) Net Sales Income Gross Profit Operating Profit 17% 36% 48% Higher vs SPLY Higher vs SPLY Higher vs SPLY June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 62,618m 53,599m 14,348m 10,556m 8,399m 5,669m EBITDA Pro
Slide 47: Business wise Contributions (Unconsolidated)
Business wise Contributions (Unconsolidated) Soda Ash Pharmaceuticals Chemicals & Agri Animal Health ICI Pakistan Ltd Polyester FY21 FY21 FY21 FY21 FY21 FY21 24,297m 16,709m 7,814m 8,669m 5,114m 62,618m Net Turnover 19,887m 15,647m 6,145m 8,023m 53,599m 3,909m FY20 FY20 FY20 FY20 FY20 FY20 22% 7% 27
Slide 48: Key Financial Highlights – FY'2020-21 (Consolidated)
Key Financial Highlights – FY’ 2020-21 (Consolidated) Net Sales Income Gross Profit Operating Profit 17% 32% 43% Higher vs SPLY Higher vs SPLY Higher vs SPLY June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 64,766m 55,256m 14,582m 11,015m 8,045m 5,618m EBITDA Profi
Slide 49: Business wise Contributions (Consolidated)
Business wise Contributions (Consolidated) Polyester & ICI Pakistan PowerGen Soda Ash Pharmaceuticals Chemicals & Agri Animal Health NutriCo Morinaga FY21 FY21 FY21 FY21 FY21 FY21 FY21 Net 25,529m 16,709m 7,814m 8,699m 5,114m 2,148m 64,766m Turnover 20,262m 15,647m 6,883m 8,023m 3,909m 978m 55,256m
Slide 50: Journey Since YBG Acquisition
Journey Since YBG Acquisition 5,959 3,296 3,060 3,096 2,843 2,126 2,305 1,702 974 688 CY 2012 2013 (6m) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 CY 2012 2013 (6m) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Net Turnover 34,682 18,316 38,233 37,515 36,954 41
Slide 51: Six Year Performance at a Glance (Unconsolidated)
Six Year Performance at a Glance (Unconsolidated) (Amounts in PKR bn) Revenue EBIT 8.40 62.62 58.33 53.60 49.11 5.67 4.94 41.36 4.40 36.95 4.04 3.48 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA PAT 5.96 10.95 8.35 7.59 6.82 3.30 6.27 3.06 3.1
Slide 52: Six Year Performance at a Glance (Consolidated)
Six Year Performance at a Glance (Consolidated) (Amounts in PKR Bn) Revenue EBIT 8.05 64.77 59.38 55.26 49.99 5.62 41.77 4.94 36.95 4.60 4.19 3.57 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 EBITDA 10.96 PAT 5.22 8.52 7.66 3.28 3.30 7.08 6.46 2.73
Slide 53: Financial Performance – FY'2012-14 to FY'2020-21
Financial Performance – FY’ 2012-14 to FY’ 2020-21 EBITDA PKR Bn (Amounts in PKR Bn), 60.3 EPS PKR except for dividend per share EPS 35.5 35.5 EBITDA 29.6 28.1 27.3 11.0 6.5 7.1 7.7 8.5 5.5 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 MV of Equity Dividend Per Share 101 40 81 74 64 49 41 18 16 17
Slide 54: Strong Credit Rating for ICI Pakistan
Strong Credit Rating for ICI Pakistan VIS Credit Rating Company has assigned initial entity ratings to ICI Pakistan Limited 54
Slide 55: Expansion Projects Since YBG Acquisition
Expansion Projects Since YBG Acquisition ICI PEPG SA PH GCA AH Coal fired heaters Coal fired boilers 1&2 Nutraceutical Seeds Processing Plant Manufacturing facility Launch of new corporate PKR 0.8 bn PKR 2.5 bn Manufacturing facility PKR 9 m PKR 15 m identity Aug 2013 June 2014 Dec 2013 PKR 61 m Nov
Slide 56: Q&A Session
& ICI PAKISTAN LTD. Q&A Session