Lucky Core Industries Limited · PSX:LCI
Lucky Core Industries — Investor Presentation (2023)
33 slides from Lucky Core Industries's investor presentation, 2023
Slide 1: Investor Briefing FY'22-23
€)LcI LUCKY CORE INDUSTRIES Investor Briefing FY’22-23 #JourneyOfEnrichingLives
Slide 2: Our Businesses
Our Businesses Soda Ash Business Polyester Business Pharmaceuticals From baking soda, Fabric made from Polyester Business Journey of detergents to glass, Soda Ash has diversified is used for fashion, design, & interiors. Manufacturing, marketing and distribution of some of applications. the leading
Slide 3: Group Structure & Geographical Presence
Group Structure & Geographical Presence
Slide 4: Serving Multiple Industries
Serving Multiple Industries Diversified portfolio of essential products that are the ‘core’ of almost every local industry. Industries Catered • Textile • Paints • Appliances • Construction • Automobile • Footwear • Oil/ Petroleum • Food & Beverage • Metal Engineering/ Cleaning • Pharmaceuticals • C
Slide 5: FY 22-23 – At a Glance
FY 22-23 – At a Glance Unconsolidated Consolidated KPIs Impact Financials Financials Mkt Cap | Debt Total Revenue 26% Revenue 26% 55.8 B | 6.3 B Employees PKR 109.5 B PKR 109.5 B 2,100+ Safe Man EBIT 25% Current Ratio EBIT 24% Hours* PKR 14.7 B 1.4x PKR 14.8 B > 39 M Exchequer PAT 120% ROCE PAT 101%
Slide 6: Key Highlights – FY 2022-23
Key Highlights – FY 2022-23 Policy Rate 22% PKR Devaluation LSM Inflation 825bps 41% 9.8% 29.4% Potential acquisition of approx. 75.01% shares of 1 Lotte Chemical Pakistan Limited through Lucky 2 Sale of approx. 26.5% shares of NutriCo Morinaga (Private) Limited. Core Ventures (Private) Limited (LCV
Slide 7: A Cut Above the Rest
A Cut Above the Rest Operating in Competitive Our Robust Essentials Advantage People Governance Structure Operating in 5 business Market leader in Soda Ash Strong team dedicated to Compliance of applicable laws. segments that are at the and top player in other making a difference! “Core” of various
Slide 8: Strong Capital Structure
Strong Capital Structure Healthy payout and low gearing, whilst investing heavily in growth / expansion projects. PKR’ m Ratios FY'19 FY'20 FY'21 FY'22 FY'23 ROCE 18% 20% 29% 35% 32% Healthy Returns PAT 2,305 3,096 5,959 6,249 13,772 Payout Ratio 36% 47% 62% 52% 50% * Net Total Debt 15,273 10,843 6,
Slide 9: Company Performance FY 22-23
Company Performance FY 22-23
Slide 10: Financial Performance by Business – Standalone
Financial Performance by Business – Standalone Resilient performance despite challenging economic conditions. Soda Ash Polyester Pharma Chemicals Animal Health LCI Ltd 41,417 65% 40,452 10% 9,159 3% 11,710 8% 6,844 22% 109,486 26% NSI Vs. 25,064 Vs. 36,676 Vs. 8,886 Vs. 10,807 Vs. 5,617 Vs. 86,972 7
Slide 11: Historical Performance post YBG Acquisition
Historical Performance post YBG Acquisition Continuously outperforming the market delivering a PAT CAGR of 26% over the last 9 years. 13,772 YoY Growth 120% 7,889 YoY Growth 5,959 6,249 26% 2,843 3,296 3,060 3,096 1,702 2,126 2,305 974 688 CY 2012 2013 (6m) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY
Slide 12: Segmental Performance FY'22-23
Segmental Performance FY’22-23
Slide 13: Soda Ash Business
Soda Ash Business • Total production capacity of 560 KTPA with 210 KTPA capacity added in the last 5 years. • Strategic geographical location near Khewra salt mines. • Availability of key raw material Salt & Limestone. • Highest ever export sales of 63 KTPA in FY’23.
Slide 14: Capacity Expansion
Capacity Expansion A mouth of the mine manufacturing facility with access to major raw materials. 350,000 TPA Expansion Completed 1 Expansion Completed 500,000 60KTPA & CFB-5 75KTPA PKR 5.5bn *75KTPA TPA PKR 7bn PKR 3.6bn 2018-19 Approved 2021-22 FY 2012 2 CFB-5 July’22 *60KTPA Mar’23 Expansion In P
Slide 15: Financial Performance – Soda Ash
Financial Performance – Soda Ash Year on year growth achieved through continued investment in capacity expansion, energy efficiency projects and focus on exports. 41.42 7.63 Revenue 25.06 EBIT 4.48 3.63 3.53 16.54 15.65 16.71 3.28 12.55 2.75 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY2
Slide 16: Polyester Business
Polyester Business • Production capacity of 122k tons with full capacity utilization. • 1st to launch 100% recycled branded PSF (RPET).
Slide 17: Financial Performance – Polyester
Financial Performance – Polyester Volatility in performance linked to global economic conditions, commodity prices and a slowdown in demand. 40.45 3.81 36.68 3.19 2.72 Revenue EBIT 23.63 24.30 19.89 18.15 0.71 0.05 0.07 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 4.41 3.86 3.33 EBITD
Slide 18: Pharmaceuticals Business
Pharmaceuticals Business • Holds 20th rank in Pharma industry comprising of 600+ players. • 21 new products launched over last 3 years. • Internalisation of the cardio portfolio, enhancing manufacturing efficiencies. • Introduction of high-speed PET bottle line at Hawke’s bay plant for Mucaine and C
Slide 19: Business Overview
Business Overview • Zestril Key Brands • Tazopip • Tenormin • Fortexone PRIMARY CARE SPECIALITY CARE SPECIALITY • Inderal • Merpen • Citralka • Trihemic CARE • Hycortisone • Cefcin • Nilstat • Corinef • Lederplex • Zoladex Gynecology Pediatrics Nutraceuticals Cardiology Cardio Metabolic Oncology Res
Slide 20: Financial Performance – Pharmaceuticals
Financial Performance – Pharmaceuticals Pharma business faced significant challenges on profitability fronts due to cost increases (CFR, rupee devaluation & sales tax). 8.89 9.16 1.25 7.81 1.00 Revenue 6.30 6.14 0.84 EBIT 5.70 0.72 0.64 0.28 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY2
Slide 21: Animal Health Business
Animal Health Business • Livestock market size approx. PKR 38 Bln with LCI capturing 12% market share. • Poultry market size approx. PKR 19 Bln with LCI capturing 11% market share. • 5th Largest player in Vanda. • Investment approval of up to PKR 633 Mln for setting up a green field veterinary medic
Slide 22: Financial Performance – Animal Health
Financial Performance – Animal Health Consistent improvement in results on back of growth in locally manufactured Farmers Choice portfolio 0.93 6.84 0.76 5.62 0.72 Revenue 4.89 5.11 EBIT 3.73 3.91 0.38 0.26 0.24 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 1.01 0.83 0.74 EBITDA 0.45 0
Slide 23: Chemicals & Agri Sciences Business
Chemicals & Agri Sciences Business • Representation of global renowned companies like Wanhua, Diversey, Evonik, Venator, Rio Tinto. • Strong presence & equity in the Agriculture sector, representing world leading Agri companies: Advanta Seeds and UPL Limited. • Market leadership in the Sunflower See
Slide 24: Financial Performance – Chemicals & Agri Sciences
Financial Performance – Chemicals & Agri Sciences Effective margin management and strong performance in oil seeds category. 11.71 10.81 1.89 Revenue 8.70 1.46 7.83 8.11 8.02 EBIT 0.94 0.80 0.71 0.29 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 2.01 1.57 EBITDA 1.05 0.92 0.77 0.34 FY18
Slide 25: Nutrition Business
Nutrition Business
Slide 26: Divestment of 26.5% Shareholding
Transaction Rationale/ Benefits Shares Cash Generation Divestment 26.5% 21.76 Mln shares of 26.5% Price Capital Gain Shareholding USD 2.07 Per Share in NutriCo Value Morinaga 45.08 Mln $ Rapid Growth (Private) Gain Limited 9.8 Enhanced Future Value Bln PKR
Slide 27: Financial Performance – Nutrition Business
Financial Performance – Nutrition Business 14.61 2.26 1.92 13.90 Revenue EBIT 1.16 12.56 FY21 FY22 FY23 FY21 FY22 FY23 2.64 2.28 EBITDA 1.52 FY21 FY22 FY23 Amounts in PKR Bln
Slide 28: Opportunities & Challenges
Opportunities & Challenges FY 2022 - 23
Slide 29: Opportunities & Challenges – FY 2023-24
Opportunities & Challenges – FY 2023-24 Slowdown in demand due Full benefit of capacity to economic conditions 1 1 expansion in Soda Ash Increase in energy cost 2 2 Margin management Mitigation Challenges Strategies Higher Cost of borrowing and exchange rate 3 3 Manufacturing efficiencies volatility
Slide 30: Growth Journey Continues
Potential Acquisition of 75.01% Shares of Lotte Soda Ash Expansion Chemicals Pak Ltd Projects Signing of SPA with Lotte Installation of additional coal New Animal Health Chemical Corporation Korea Joint-Venture Float fired boiler to support Facility for potential acquisition of Glass expansion of SA
Slide 31: Expansion Projects Since YBG Acquisition
Expansion Projects Since YBG Acquisition LCI PEPG SA PH GCA AH Coal fired boilers Manufacturing Seeds Processing NutriCo Energy projects PKR 7.5 bn Nutraceutical facility Plant PKR 9 m PKR 1.9 bn PKR 3.1 bn Manufacturing PKR 15 m 2013 facility PKR 61 m 2015 DA Expansion PKR 1.1 bn 2015 rPET project
Slide 32: Q&A Session
Q&A Session & LC | #Journey yOfEnrichingLives LUCKY COF °
Slide 33: Thank You
Thank You #JourneyOfEnrichingLives QD r0