Descon Oxychem Limited · PSX:DOL

Descon Oxychem — Investor Presentation (September 2019)

23 slides from Descon Oxychem's investor presentation, September 2019

  1. Slide 1: Descon Oxychem Limited

    Descon Oxychem Limited Market Leader in Pakistan Established Quality, Supply Reliability & Customer Service Expanding current 34,000 TPA Manufacturing Facility

  2. Slide 2: Descon Partners in Progress

    DESCON PARTNERS IN PROGRESS A REMARKABLE JOURNEY STARTED 40 YEARS AGO OVER USD 1 BILLION IN ANNUAL REVENUES 15,000 EMPLOYEES, 26 NATIONALITIES, 7 COUNTRIES

  3. Slide 3: About Us

    About Us ! Incorporated 2004 Status Listed at PSX (2008) Commercial Production 2009 Major Business Manufacturing & sale of H2O2 Name-plate Capacity 28,000 MT Actual Production 34,000 MT Paid-up Capital PKR 1 billion

  4. Slide 4: Board Of Directors

    Board Of Directors Taimur Dawood Chairman Farooq Nazir Non-Executive Director Faisal Dawood Non-Executive Director Mehreen Dawood Non-Executive Director Asif Qadir Independent Director Ali Asrar Hossain Aga Independent Director Haroon Waheed Independent Director Imran Qureshi CEO / Executive Directo

  5. Slide 5: Corporate Surveillance

    Corporate Surveillance

  6. Slide 6: Auditors and Credit Rating

    Internal Auditors: KPMG External Auditors: PwC (A.F. Ferguson & Co.) Credit Rating Agency: PACRA Credit Rating (Jun-18) Long Term (A) Short Term (A1)

  7. Slide 7: Quality, Health, Safety & Environment

    Quality, Health, Safety & Environment

  8. Slide 8: QHSE - Certifications

    QHSE - Certifications DESCON QUALITY ISO 9001 CERTIFIED ENVIRONMENT ISO 14001 CERTIFIED OHSAS 18001 SGS CERTIFIED

  9. Slide 9: Production

    Production

  10. Slide 10: Production Trend (MT)

    Production Trend (MT) 40000 34697 33293 32506 32098 32234 30836 29792 30000 27890 26394 20140 20000 10278 10000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Production Trends Linear (Production Trends)

  11. Slide 11: Industry & Markets

    Industry & Markets

  12. Slide 12: Industry Snapshot

    Industry Snapshot Domestic Demand Approx. 68,000 MT Competitors SPL & Imports DOL’s production 34,000 MT SPL’s production 22,000 MT Imports 15% - 20%

  13. Slide 13: H2O2 Products & its applications

    H2O2 Products & its applications Textile HP provides high bleaching impact at extremely competitive cost Mining Used as an oxidant and effluent treatment Food & Beverages To create a sterile environment in aseptic packing units

  14. Slide 14: Potential Segments

    Potential Segments • Cosmetic • Water Treatment • Livestock • Poultry • Milk Descon Oxychem Limited

  15. Slide 15: Key Financial Indicators

    Key Financial Indicators

  16. Slide 16: Financial Performance

    Financial Performance Gross profit margin (%) 40.00 29.52 30.71 30.00 25.83 20.76 21.71 19.98 19.03 20.00 10.00 - 2013 2014 2015 2016 2017 2018 2019 EBITDA margin to sales (%) 40.00 30.31 30.88 30.00 28.32 26.97 23.58 24.15 21.19 20.00 10.00 - 2013 2014 2015 2016 2017 2018 2019

  17. Slide 17: Financial Performance

    Financial Performance Net profit margin (%) 40.00 30.00 20.00 15.43 14.57 10.45 10.00 2.84 - 2013 2014 2015 2016 2017 2018 2019 (10.00) (4.09) (3.74) (8.43) (20.00) Debt Equity Ratio 100% 22 20 17 93 100 100 47 75% 83.00 78.00 80.00 50% 53 25% 7.00 0% 2013 2014 2015 2016 0.00 2017 0.00 2018 2019 Deb

  18. Slide 18: Financial Performance

    Financial Performance Return on capital employed (%) 40.00 36.65 30.00 25.86 20.10 20.00 12.94 8.46 7.25 10.00 5.86 - 2013 2014 2015 2016 2017 2018 2019 Return on equity (%) - Net 60.00 50.32 40.00 18.15 20.00 11.93 2.97 - 2013 2014 2015 2016 2017 2018 2019 (20.00) (9.18) (12.33) (40.00) (31.49)

  19. Slide 19: Financial Performance

    Financial Performance Earnings / (loss) per share (Rupees) - Basic 3.87 4.00 3.16 3.00 2.01 2.00 1.00 0.44 - 2013 2014 2015 2016 2017 2018 2019 (1.00) (0.50) (0.60) (1.17) (2.00) Retained Earnings (50,000) 2013 2014 2015 2016 2017 2018 2019 (250,000) (236,441) (344,272) (450,000) (402,551) (462,275)

  20. Slide 20: Financial Performance

    Financial Performance Share Price 25.00 18.35 19.30 20.00 16.05 15.00 10.00 5.49 5.98 6.03 4.72 5.00 - 2013 2014 2015 2016 2017 2018 2019 * As on 19-Mar-2019 Price Earnings Ratio 12.00 13.67 9.13 6.11 4.15 4.00 2013 2014 2015 2016 2017 2018 2019 (4.00) (4.05) (12.00) (10.93) (9.95)

  21. Slide 21: Way Forward

    Way Forward

  22. Slide 22: Positives & Way Forward

    Positives & Way Forward - Rescind of SRO 1125 – Cash positive. - Application of anti dumping duty on export schemes imports – Price positive & level playing field. - HP import valuation rulings – Price positive & level playing field - Capacity Expansion to maintain market leadership position - Pursu

  23. Slide 23: Thank You! Q&A

    Thank You ! Q&A

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