Bestway Cement Limited · PSX:BWCL
Bestway Cement — Q1 FY2023 Earnings Presentation
33 slides from Bestway Cement's earnings presentation, Nov 3, 2022
Slide 1: Corporate Briefing Session
Corporate Briefing Session Bestway Cement Limited | 03 November 2022 Facilitated by Presided by Mr. Muhammad Danish Khan (Head BTR) Mr. Muhammad Amir Khan (CFO)
Slide 2: Contents
CONTENTS Bestway Key Highlights New Environment Group Projects & CSR Future Q&A Appendices Outlook Session Key Financial Data
Slide 3: Bestway Group
BESTWAY GROUP
Slide 4: Bestway Portfolio
BESTWAY PORTFOLIO One of the largest Largest Largest 3rd largest retail 2nd largest cement overseas investor independent independent retail bank in producer in in Pakistan- wholesaler in UK pharmacy in UK Pakistan with more Pakistan Estimated value of having 63 Bestway with 748 than 1,300 group inve
Slide 5: Bestway Cement
BESTWAY CEMENT Bestway offers a wide range of products for domestic and international markets. We’re state-of-the-art production the only cement producer lines at four locations Selling cement Hattar Farooqia tonnes cement per annum Chakwal production capacity Kallar Kahar.
Slide 6: BCL Operational Areas
BCL OPERATIONAL AREAS Hattar Plant Head Office Farroqia Plant Islamabad Sales Head Office Sales Office Rawalpindi Peshawar KK Plant Mianwali Plant Chakwal Plant Sales Office Sales Office Multan Lahore
Slide 7: Key Highlights
a, KEY HIGHLIGHTS BESTWAY.
Slide 8: BCL Capacity Utilisation
BCL CAPACITY UTILISATION BCL - Capacity Utilisation 72% 53% Q1 - FY2022 Q1 - FY2023
Slide 9: Industry Growth and BCL Market Share (Based on Despatches)
INDUSTRY GROWTH AND BCL MARKET SHARE (BASED ON DESPATCHES) Industry Total Cement Sales Growth/(Decline) BCL Market Share – Total Cement Sales BCL 0% Q1 – FY2022 Q1 – FY2023 -7% 19% 15% 19% 16% -23% -26% 66% 65% Q1 - FY2022 Q1 - FY2023
Slide 10: Industry Growth and BCL Market Share (Based on Despatches) Contd.
INDUSTRY GROWTH AND BCL MARKET SHARE (BASED ON DESPATCHES) CONTD. Volumes (Tons) 12,000,000 10,221,523 10,000,000 7,914,315 8,000,000 6,000,000 4,000,000 1,421,450 1,922,623 2,000,000 - BCL Industry - excl BCL Q1-FY2023 Q1-FY2022
Slide 11: Key Financial Highlights: Net Turnover
KEY FINANCIAL HIGHLIGHTS Net Turnover 20 18 16 19 14 12 15 In Billions 13 12 10 12 8 9 6 4 2 '- Q1 - FY2018 Q1 - FY2019 Q1 - FY2020 Q1 - FY2021 Q1 - FY2022 Q1 - FY2023 Years
Slide 12: Key Financial Highlights: Gross Profit
KEY FINANCIAL HIGHLIGHTS Gross Profit 7 33% 6 38% 30% 6 5 32% 5 5 In Billions 4 22% 3 4 2 3 8% 1 '- 1 Q1 - FY2018 Q1 - FY2019 Q1 - FY2020 Q1 - FY2021 Q1 - FY2022 Q1 - FY2023 Years
Slide 13: Key Financial Highlights: Net Profit
KEY FINANCIAL HIGHLIGHTS Net Profit 4 18% 23% 19% 3 19% 3 3 3 15% In Billions 2 2 3% 2 1 0 '- Q1 - FY2018 Q1 - FY2019 Q1 - FY2020 Q1 - FY2021 Q1 - FY2022 Q1 - FY2023 Years
Slide 14: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Other Financial Measure Q1- FY2022 Q1 –FY2023 Leverage Ratio (D/E) Dividend Payout Profit from Operations Profit from Associate Contribution to Exchequer
Slide 15: Financial Performance
FINANCIAL PERFORMANCE 16,000.0 14,000.0 12,000.0 10,000.0 8,000.0 +7,254 -1,780 6,000.0 -61 -641 4,000.0 2,990 -52 -398 3,309 -4,003 2,000.0 - (2,000.0) •Net revenue increased by 3.3 billion (21%): • Other expenses include WPPF and WWF, significant increase •Volume Impact: Despatches decreased by 0.
Slide 16: New Projects
E*; NEW PROJECTS
Slide 17: Mianwali Project
MIANWALI PROJECT Location Capacity Project Start Date Kiln Light-up TPD clinker Plant Manufacturer Expected Commercial Operation Date
Slide 18: Hattar-II Project
HATTAR - II PROJECT Location Capacity Project Start Date Expected Commercial Operation Date TPD clinker Plant Manufacturer
Slide 19: Capacity Enhancement
CAPACITY ENHANCEMENT Pre Expansion Post Expansion Capacity Capacity* TPA cement TPA cement *After completion of Mianwali and Hattar-II
Slide 20: Solar Project
SOLAR PROJECT Entire initiative is envisaged to reduce 6.8 million tonnes of CO2 emissions over the life of the project, equal to plantation of approximately Hattar, Chakwal, Further solar Farooqia and capacity on all Kallar Kahar solar plants to be plants energized energized by Apr with combined 20
Slide 21: Solar Project: Power Mix
SOLAR PROJECT Q1- FY2022 Power Mix Q1 – FY2023 Power Mix 2% 8% Grid 32% 43% Green/Renewable 55% Fossil 60%
Slide 22: Environment
ENVIRONMENT
Slide 23: Environment Conservation
ENVIRONMENT CONSERVATION As part of our clean and BCL is the leader in water BCL has made huge BCL head office building is green ambition, we have conservation after installation improvement and built new WWF certified and declared planted nearly 38,000 of Air Cooled Condenser rainwater harvesting p
Slide 24: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 25: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY • Donation to Shahid Afridi Foundation • Free medical facilities are provided to • Spent more than Rs. 162 million on of Rs. 5 million for the construction of thousands of patients in the local various CSR initiatives making it one educational facility. community. of
Slide 26: Future Outlook
FUTURE OUTLOOK
Slide 27: Future Outlook
FUTURE OUTLOOK The current The local economic and The new capacities in financial year will political uncertainty, high the pipeline will be challenging for inflation and unreasonably intensify the the economy and high taxation will continue competition and will cement industry. to bear down on ceme
Slide 28: Question & Answer Session
Bo QUESTION & ANSWER SESSION
Slide 29: Appendices
i APPENDICES
Slide 30: Sales Volume
SALES VOLUME Industry BCL Description Q1 – FY2023 Q1 – FY2022 YOY Q1 – FY2023 Q1 – FY2022 YOY Domestic-North 7,263,503 9,483,694 (23%) 1,408,896 1,866,429 (25%) Domestic- South 1,342,948 1,795,459 (25%) - - 0% Domestic- Total 8,606,451 11,279,153 (24%) 1,408,896 1,866,429 (25%) Exports-North 288,712
Slide 31: Key Financial Data
KEY FINANCIAL DATA HISTORICAL DATA OPERATING RESULTS Q1 - FY2023 Q1 - FY2022 FY 2022 FY 2021 FY 2020 FY 2019 (PKR Millions) Net turnover 18,606 15,355 72,371 56,864 37,129 53,602 Cost of sales 12,518 10,738 49,377 40,261 36,012 37,557 Gross profit 6,088 4,617 22,994 16,603 1,117 16,045 Operating pro
Slide 32: Key Financial Data: Significant Financial Ratios
KEY FINANCIAL DATA HISTORICAL DATA SIGNIFICANT FINANCIAL RATIOS Q1 - FY2023 Q1 - FY2022 FY 2022 FY 2021 FY 2020 FY 2019 (Percentage) Gross profit ratio 32.72 30.07 31.77 29.20 3.01 29.93 Net profit ratio 17.78 19.47 14.15 20.36 0.13 18.84 Interest coverage ratio 6.36 17.01 14.07 15.51 0.76 9.84 Retu
Slide 33: Key Financial Data: Profit and Loss
KEY FINANCIAL DATA PROFIT AND LOSS Description (PKR “Millions”) Q1 – FY2023 Q1- FY2022 Revenue 18,606 15,355 Cost of sales (12,518) (10,738) Gross profit 6,088 4,617 Selling and distribution expenses (195) (310) Administrative expenses (412) (297) Other expenses (320) (259) Operating profit 5,161 3,