Packages Limited · PSX:PKGS
Packages — Investor Presentation (April 2021)
37 slides from Packages's investor presentation, Apr 30, 2021
Slide 1: Packages Limited Corporate Briefing Session
PACKAGES LIMITED Corporate Briefing Session April 30, 2021 Creating a better tomorrow
Slide 2: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 2
Slide 3: Our History: Packages Limited - Then and Now
OUR HISTORY - Established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and paperboard into packaging for consumer industry. Packages Limited - Then and Now - First packaging company in Pakistan - Over the years, Packages Limited has
Slide 4: Our History
OUR HISTORY Established JV with Pulp & Paper JV with Print Care Mill JV with Mitsubishi Sri Lanka Tetra Pak Corp Listed on for for Pakistan for Stock Packages Tri-Pack Films Exchange Lanka 1957 1981 1986 1994 1968 1982 1993 1998 JV with Started Tissue Established JV with A&R Sweden Production Flexib
Slide 5: Our History
OUR HISTORY New Board Acquisition of Signed JV Acquisition of Mill majority agreement Chantler with capacity shareholding with Packages of 400k tons in FPC SC Johnson Canada per annum South Africa Pakistan 2001 2014 2016 2018 2005 2015 2017 2019 IGI Life Expansion of Commenced JV with introduced Pul
Slide 6: Packages Group
PACKAGES GROUP New Corporate Structure (Effective July 1, 2020) Packages Limited 54.98% 75.16% 8.05% 100% 79.07% 100% 100% 10.54% 33.33% DIC Packages Packages Anemone Bulleh Shah IGI Tripack Nestle Packages Pakistan Real Lanka Holdings Packaging Holdings Films Pakistan Convertors Limited Estate Co (
Slide 7: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 7
Slide 8: Financial Highlights (in PKR 000s)
FINANCIAL HIGHLIGHTS (IN PKR 000s) Description FY 2019 FY 2020 Change % Dividend income 1,934,288 1,916,898 1% Rental income 151,394 261,110 72% Technical fees from abroad 68,624 88,284 29% EBIT - Manufacturing 1,060,153 1,431,376 35% Operations (Till June) EBIT - Manufacturing Operations 829,847 -
Slide 9: Financial Highlights (in PKR 000s)
FINANCIAL HIGHLIGHTS (IN PKR 000s) Description Q1 2020 Q1 2021 Change % Dividend income - 782,429 100% Rental income 37,653 97,662 1.6 times Technical fees from abroad 17,895 20,515 15% EBIT - Manufacturing Operations 667,000 - -100% Total incomes 722,548 900,606 25% Other (expenses) / incomes - net
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Net Sales - PKR Million Investment Income - PKR Million 22,916 6,472 6,274 20,700 No Net Sales post 17,894 16,839 restructuring in July 2020 12,830 3,029 1,934 1,917 782 - 2016 2017 2018 2019 2020 Q1 2021 2016 2017 2018 2019 2020 Q1 2021 Earnings per share - PKR 69.0 63.0 30.0 3
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Share Price Vs KSE-100 Index Dividend per Share - PKR 1,200 47,807 55,000 50 90% 46,414 44,588 43,755 45 80% 80% 1,000 40,471 45,000 850 36,067 40 71% 70% 800 35,000 35 30 60% 597 30 25 51% 50% 600 510 506 25,000 25 22.5 40% 43% 40% 387 356 20 15 400 15,000 15 12 30% 10 20% 200
Slide 12: Our Investment Portfolio
OUR INVESTMENT PORTFOLIO Packages Limited 54.98% 75.16% 79.07% 100% 100% 10.61% 33.33% 8.05% 50% 100% Packages Anemone Bulleh Shah Nestle Packages DIC Pakistan Packages IGI Holdings Tripack Films Lanka (Pvt) Holdings Packaging Pakistan Omya Pack Convertors Limited Real Estate Limited Limited Limited
Slide 13: Packages Convertors (Pvt) Ltd
PACKAGES CONVERTORS (PVT) LTD OUR PRODUCTS 100% FLEXIBLE PACKAGING FOLDING CARTONS subsidiary NET SALES (2020) EBIT (2020) CONSUMER PRODUCTS Rs 12B Rs 1.2B Creating a better tomorrow 13
Slide 14: Packages Convertors – Business Units
PACKAGES CONVERTORS – BUSINESS UNITS Our Packaging Business CONSUMER FLEXIBLE PRODUCTS PACKAGING Local Customers 30% 22% Total 50% Sales 28% FOLDING International CARTONS Customers 70% Creating a better tomorrow 14
Slide 15: Folding Cartons
FOLDING CARTONS OUR CUSTOMERS High quality detailed graphics in Offset and Rotogravure printing Produce a wide range of products for tobacco, pharma, FMCG, personal care and food industries OUR BUSINESS SEGMENTS Tobacco, 39% General Packaging, 61% Creating a better tomorrow 15
Slide 16: Folding Cartons - Products
FOLDING CARTONS - PRODUCTS Location Lahore, Pakistan First operation 1957 Total Area 100,000 sq ft Board conversion (2020) 25,000 tons Creating a better tomorrow 16
Slide 17: Flexible Packaging - Pakistan
FLEXIBLE PACKAGING - PAKISTAN OUR CUSTOMERS High quality detailed graphics in Flexographic and Rotogravure printing Produce lamination for plastic films, aluminium foil and paper OUR BUSINESS SEGMENTS Others, 8% Food, 33% Personal Care, 28% Snack & Beverages, Dairy, 13% 19% Creating a better tomorro
Slide 18: Product Segments – Pakistan Market
PRODUCT SEGMENTS – PAKISTAN MARKET Home & personal care Ice cream cones Instant drinks Creating a better tomorrow 18
Slide 19: Consumer Products
CONSUMER PRODUCTS OUR BRANDS Pakistan’s only tissue manufacturing with a capacity of 100 ton per day Produce facial tissues, toilet rolls, napkins, party packs, kitchen rolls, paper cups and plates OUR MARKET SHARE OUR BUSINESS SEGMENTS Rest of the Others Market B2B 5% 14% 38% 62% Packages Branded 8
Slide 20: Our Portfolio
OUR PORTFOLIO ✓ Facial ✓ Toilet Rolls ✓ Party Pack ✓ Paper Towels ✓ Napkins ✓ Pocket Packs ✓ Wet Wipes ✓ Paper Cups ✓ Paper Plates Now Diversifying into femcare category!! Creating a better tomorrow 20
Slide 21: Bulleh Shah Packaging
BULLEH SHAH PACKAGING OUR PRODUCTS 100% Subsidiary CORRUGATED PAPER BOARD CARTONS Bulleh Shah Packaging NET SALES (20 Vs 19) EBIT (20 Vs 19) Rs 29B Vs Rs 26B Rs 4.2B Vs Rs 1.2B Corrugated Packaging Paper & Board 12% 250% 100,000 tons 240,000 tons Karachi Kasur Creating a better tomorrow 21
Slide 22: Planned Capacity Expansion
Planned capacity expansion Announcement – April 21, 2021 This is with reference to capital expenditure investment plans of Bulleh Shah Packaging (Private) Ltd (“BSPL”), a 100% wholly owned subsidiary of Packages Limited (“Company”). In accordance with Sections 96 and 131 of the Securities Act, 2015
Slide 23: Tri-Pack Films
TRI-PACK FILMS OUR PRODUCTS 33% Associate NET SALES (20 Vs 19) EBIT (20 Vs 19) ▪ Transparent Lamination Rs 15.1B Vs Rs 14.7B Rs 1,483M Vs Rs 702M Grade ▪ Plain Film ▪ Metallizable Heat ▪ Composite 3% 111% Sealable ▪ Cigarette Grade ▪ Metallized Heat Sealable ▪ Pearlized ▪ White Opaque Heat ▪ Metaliz
Slide 24: Planned Capacity Expansion by Tri-Pack
Planned capacity expansion by Tri-Pack Announcement – Dec 03, 2020 (by Tri-Pack) The Board of Tri-Pack Films Limited in its meeting held on December 2, 2020 has approved investment in a new state of the art Biaxially Oriented Poly Propylene (BOPP) Film manufacturing line subject to successful financ
Slide 25: Proposed Purchase of 19.33% Shareholding in Tri-Pack
Proposed purchase of 19.33% shareholding in Tri-Pack from Mitsubishi Corporation under the JV agreement Announcement – Feb 12, 2021 Mitsubishi Corporation has indicated its intention of selling its entire 19.33% shareholding of Tri-Pack Films Limited (Tri-Pack). As per JV agreement between the parti
Slide 26: DIC Pakistan
DIC PAKISTAN OUR PRODUCTS 55% ROTOGRAVURE INKS FLEXOGRAPHIC INKS Joint Venture DIC GLOBAL NET SALES (20 Vs 19) EBIT (20 Vs 19) Rs 5.6B Vs Rs 5.2B Rs 813M Vs Rs 676M SHEET FED OFFSET INKS 8% 20% Creating a better tomorrow 26
Slide 27: Omya Pack Pakistan
OMYA PACK PAKISTAN OUR PRODUCTS 50% Joint Venture OMYA SWITZERLAND Started Operations in 2018 NET SALES (20 Vs 19) Calcium Carbonate EBIT (20 Vs 19) Rs 581M Vs Rs 352M Dry Process Rs 70M VS Rs (11)M Wet Process Creating a better tomorrow 27
Slide 28: Flexible Packages Convertors – South Africa
FLEXIBLE PACKAGES CONVERTORS – SOUTH AFRICA OUR HARDWARE & PRODUCTS 62.5% Subsidiary ▪ 6 Coex extrusion ▪ Shrink Film machines NET SALES (20 Vs 19) ▪ 2 Monolayer extrusion ▪ Bread Bags ZAR 576M Vs ZAR 542M EBIT (20 Vs 19) ▪ 2 printing machines ZAR (16)M Vs ZAR 23.6M ▪ Refuse Bags 6% upto 10 colors ▪
Slide 29: Packages Lanka – Sri Lanka
PACKAGES LANKA – SRI LANKA OUR HARDWARE & PRODUCTS 79.09% Subsidiary ▪ Coex Extrusion ▪ Tea Bags EBIT (20 Vs 19) ▪ Roto graphic Printing NET SALES (20 Vs 19) ▪ Lamination ▪ Biscuits & Snacks LKR 2.2B Vs LKR 2.4B LKR 24M VS LKR 108M ▪ Slitting & Bag Making ▪ Confectionary 78% ▪ Detergents ▪ Dairy Cre
Slide 30: Packages Real Estate
PACKAGES REAL ESTATE 75.16% Subsidiary RENTAL (20 Vs 19) EBIT (20 Vs 19) Rs 1.5B Vs Rs 2B Rs 824M Vs Rs 1.2B 25% 31% Inaugurated Area >200 2017 1.3M sqft Shops Creating a better tomorrow 30
Slide 31: Impact of COVID-19 on Packages Mall Operations
IMPACT OF COVID-19 ON PACKAGES MALL OPERATIONS COVID-19 lockdown has caused disruptions/closure of the tenant businesses and receipt of trade debts. Accordingly, Packages Real Estate (Private) Limited has announced a rent-free period along with reduction in maintenance charges effected Mar 22, 2020
Slide 32: Content
Content 1. Company Overview 2. Financial Highlights 3. Strategic and Operational Developments 4. Questions & Answers Creating a better tomorrow 32
Slide 33: Diversifying into Starch Business
Diversifying into Starch Business Announcement: April 26, 2021 The Board of Directors of Packages Limited (the Company) has approved formation of a wholly owned local subsidiary, which will be engaged in the business of manufacturing and distributing corn-based starch and its derivative products sub
Slide 34: Corporate Structure
Corporate Structure Packages Limited Starch Pack (Private) Limited • Private Limited Company • Operate as 100% subsidiary of Packages Limited Packages Anemone Packages Packages Nestle Bulleh Shah Omya Pack, Tri-Pack Starch Pack Convertors DIC, 55% Holdings, Real Estate, Lanka (SL), Pakistan, Packagi
Slide 35: Important Disclaimer
Important Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT This presentation has been prepared by Packages Limited (Packages) solely for information purposes. No representation or warranty express or implied is made there to, an
Slide 36: Content
Content 1. Company Overview 2. Financial Highlights 3. Questions & Answers Creating a better tomorrow 36
Slide 37: Questions & Answers
Questions & Answers Creating a better tomorrow 37