Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — Q1 2020 Earnings Presentation
19 slides from Engro Fertilizers's earnings presentation, 2020
Slide 1: Analyst Briefing Q1 2020
ANALYST BRIEFING Q1 2020
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS For Q1 2020, EFERT’s Profit After Tax (PAT) stood at PKR 571 M PKR M Q1 2020 Q1 2019 vs Q1 2019 PAT of PKR 4,007M Total Revenue 10,791 23,652 Lower profitability was largely attributable to lower product offtake in view of urea industry reduction by 25%, coupled with Gross Pr
Slide 3: Urea Market Environment
UREA MARKET ENVIRONMENT Urea industry sales for Q1 2020 clocked in at 1,017 KT, down by 25% vs 1,348 KT in Urea Industry Change Q1 2019, (i) significant channel inventory at the start of year; and (ii) market (KT) Q1 2020 Q1 2019 disruption due to lockdown in March Opening Inv. 200 Production 1427
Slide 4: Phosphates Market Environment / SFB Market Environment
PHOSPHATES MARKET ENVIRONMENT Q1 2020 industry sales stood at 229KT vs 197KT in Q1 2019 (up 16%). This positive change is Phosphates Market Share Q1 2020 attributed to the lower channel inventory at the start of this year, coupled with lower prices EFERT’s market share for Q1 2020 clocked at 15%
Slide 5: Indigenous gas-based Urea sufficient to meet demand
Indigenous gas-based Urea sufficient to meet demand • Agronomic demand for urea is expected to be around 5.8 MT in 2020 in line with the last 5-year average • Opening industry inventory in 2020: ~200KT and channel inventory at start of the year: ~400KT • This implies that local plants operating on i
Slide 6: Price cut to alleviate the Impact of a pandemic on the nation
Price cut to alleviate the Impact of a pandemic on the nation As one of Pakistan’s most responsible companies, EFERT reduced its urea prices by another PKR 240/bag to alleviate the adverse impact of a global pandemic on our nation, in particular the agriculture sector which remains the largest drive
Slide 7: Benefit passed on to farmers in the form of lower urea prices
BENEFIT PASSED ON TO FARMERS IN THE FORM OF LOWER UREA PRICES The industry has passed almost 3.4x benefit to farmers in terms of lower urea prices versus benefit received in the form of subsidized gas prices Farmer Benefit and Subsidy (PKR Comparison of international urea prices Vs B) 2010-2019 700
Slide 8: Awards & Recognition
Awards & Recognition Corporate Excellence Award-Management Association of Pakistan Awarded the Amir S. Chinoy trophy for being ranked as the best company in Pakistan in the Industrial sector. This marks our return to this podium after 26 years. The award was conferred to the Company at the 35th
Slide 9: Donation- To Combat COVID-19 in Pakistan
Donation- To Combat COVID-19 in Pakistan Focus on 4 Verticals Prevention: Protecting 1 Testing / 2 frontline staff Diagnostics 3 Patient care and 4 Livelihoods and facilities sustenance • Board has approved PKR 200 Mn for a donation under Husain Dawood’s pledge to fight Covid-19 in Pakistan 9
Slide 10: How Are We Combating COVID-19?
How Are We Combating COVID-19? 10
Slide 11: Our Approach
Risk Identification 1 Comprehensive company wide exercise conducted to identify risks which pose threat to business continuity and employee safety Immediate Responses 2 Implementing the action plan that immediately addresses business continuity and Our Approach safety concerns a) Prevention measures
Slide 12: Changing The Work Culture To Adopt To The New Norm
Changing The Work Culture To Adopt To The New Norm Promoting Work Leveraging Promoting Employee From Home Technology Engagement & Well being Office based staff reduced to 20% 215 meetings scheduled through E-Learning framework launched zoom, engaging ~2,500 offering online courses on enabling Allows
Slide 13: Preventive measures in Control Room
Preventive measures in Control Room DHK Manufacturing Measures taken in Urea-II Control Room Preventing spread of infection in control rooms by undertaking relevant safety and hygiene protocols www.engro.com 13
Slide 14: Prevention Measures at Plant Site
Prevention Measures at Plant Site DHK Manufacturing Preventing spread through regular fumigation/disinfecting of premises www.engro.com 14
Slide 15: Isolation Facility at Daharki
ISOLATION FACILITY AT DAHARKI DHK Manufacturing Separate COVID-19 facility for male, female and children www.engro.com 15
Slide 16: Prevention Measures & Awareness Efforts
Prevention Measures & Awareness Efforts Commercial Preventives measures such as use of hand sanitizers, hand gloves and temperature checks have been put to regular practice www.engro.com 16
Slide 17: Health Care Point at Karachi Warehouses
Health Care Point at Karachi Warehouses Supply chain Temperature Checking, Screening, and PPE Facility at Karachi Warehouses www.engro.com 17
Slide 18: CSR Activities
CSR Activities EFERT distributing food to 1500 families in Fumigation/Disinfecting of nearby villages Holding awareness campaigns on COVID- Disinfection tunnel installed outside the plant’s vicinity and Daharki City 19 and installing hand wash stations Deputy Commissioner’s office Security Analyst B
Slide 19: Thank You Q & A
THANK YOU Q&A Security Analyst Briefing Q1 2020