Agritech Limited · PSX:AGL
Agritech — Investor Presentation (November 2023)
16 slides from Agritech's investor presentation, Nov 13, 2023
Slide 1: Agritech Limited Corporate Briefing Session
SSP PLANT, HARIPUR AGRITECH LIMITED UREA PLANT, MIANWALI CORPORATE BRIEFING SESSION – 13 Nov 2023 1
Slide 2: Profile, Industry overview, Financials / outlook, Interactive session
Profile Industry overview Financials / outlook Interactive session 2
Slide 3: Profile
Profle = ——s—sSY — \
Slide 4: Profile
Profile • Agritech (formerly Pak American Fertilizers Ltd) is the First Fertilizer Complex of the country established in 1958 at Mianwali (Punjab) with Ammonium Sulphate plant. • Later with the recovery of Gas in the North, plant was switched to Urea Manufacturing in 1998 with brand new Urea & Ammon
Slide 5: Industry overview
Industry overview 5
Slide 6: Urea Industry Update
UREA INDUSTRY UPDATE UREA PRODUCTION (kt) Urea Offtakes (kt) 8000 7000 6616 6228 6343 6800 6039 7000 5811 6170 6144 6141 6329 6000 6000 5602 4945 5000 4770 4837 4765 5000 4000 4000 3000 3000 2000 2000 1000 1000 0 0 Capacity 2018 2019 2022 2021 2022 YTD Sep YTD Sep 2018 2019 2020 2021 2022 YTD Sep YT
Slide 7: Historical Gap Between Offtakes and Domestic Production
HISTORICAL GAP BETWEEN Offtakes and Domestic Production Chart Title 7000 6792 6616 6500 6343 6228 6000 6039 5861 5811 5631 5617 5500 5495 5000 4500 4000 3500 3000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projected All Plants Production Mari and SSGC Plants Production Urea Offtakes Productio
Slide 8: Urea Prices: Domestic vs Imported
Urea Prices : Domestic vs Imported 8,000 Chart Title 7,000 7000 6396 6,000 6000 5,000 4,000 5000 3,000 4000 2905 2,000 3000 1,000 2000 - 1000 Jan Feb Mar Apr May Jun Jul '23 Aug Sep 0 '23 '23 '23 '23 '23 '23 '23 '23 Av. Urea Price (Rs/bag) Jan-Sep 2023 Imorted Urea Price (Rs/bag) Domestic Imported D
Slide 9: Phosphate Industry Update
PHOSPHATE INDUSTRY UPDATE PHOSPHATE (P2O5) Production (kt) PHOSPHATE (P2O5) Offtake (kt) 700 1400 594 603 600 573 1150 1169 544 1200 1068 1073 497 500 455 469 1000 400 800 722 325 647 300 600 449 200 400 100 200 0 0 Capacity 2018 2019 2022 2021 2022 YTD Sep YTD Sep 2018 2019 2020 2021 2022 YTD Sep Y
Slide 10: DAP (USD/ton) CFR Karachi - Historical
DAP (USD/ton) CFR KARACHI - Historical DAP (USD/ton) CFR KHI 1200 1025 1000 946 883 829 800 748 650 661 600 574 531 539 473 411 381 374 400 346 340 324 304 317 200 0 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 DAP (USD/ton) CFR KHI 10
Slide 11: Financials / outlook
Financials / outlook 11
Slide 12: Market Shares
MARKET SHARES UREA Market Share (%) Phosphate (P205) Market Share (%) 2023 (P) 4 2023 (P) 1.3 2022 5 2022 1.3 2021 4 2021 1.3 2020 2 2020 0.9 2019 5 2019 0.7 0 1 2 3 4 5 6 0 0.2 0.4 0.6 0.8 1 1.2 1.4 UREA Market Share (%) Phosphate (P205) Market Share (%) • Urea Market Share Dependent on Supply of •
Slide 13: Agritech Business Performance (YTD Sep 2022 vs 2023)
AGRITECH BUSINESS PERFORMCE (YTD SEP 2022 vs 2023) Loss after Gas Revenue Gross Profit Operating Finance Cost EBIDTA Tax 264 185 Days (Rs Bn) (Rs Bn) Profit (Rs Bn) (Rs Bn) (Rs Bn) (Rs Bn) 30% 12 1.3 0.6 3.2 (2.4) 1.8 0.3 RATE 839 1,239 47% 13.9 2.4 1.5 4.5 (2.8) 2.9 1.8 16% 79% 167% 42% 14% 63% 598
Slide 14: Financial Restructuring Update
FINANCIAL RESTRUCTURING UPDATE • AGL Scheme of Arrangement sanctioned by Lahore High Court in July 2022 • Necessary disclosures to & PSX & SECP were made to effectuate Scheme of the Completion Date Arrangement • Memorandum of Articles and Association of the Company amended. Authorized Share Capital
Slide 15: Future Outlook
FUTURE OUTLOOK Robust Urea Demand and likely Urea shortages in the country to ensure Continuity of Gas Supply to the Company’s Urea Plant Gas Pricing Reform by GOP likely to settle the Uniform Gas Pricing Negotiation with Industry bringing all plants at Uniform Gas Rates Phosphate Fertilizers (lead
Slide 16: Interactive session
Interactive session 16