Transmission of Annual Report for the Year Ended 2025-06-30

INNOVATING TOWARDS

At Fauji Cement Company Limited, innovation isn't just about improving performance it's about reshaping the future. As one of Pakistan's leading cement manufacturers, we recognize that our responsibility extends beyond building infrastructure we are helping build a more sustainable world.

This year, FCCL has taken bold strides to integrate cutting-edge technologies and green energy solutions into its operations. From reducing the carbon footprint to optimizing energy efficiency across all production lines, the Company is redefining what it means to be a responsible industry leader.

Every employee of the Company understand that the future belongs to those who act today. Through a culture of continuous innovation and a steadfast commitment to environmental stewardship, FCCL is laying the foundation for a greener, cleaner and more resilient Pakistan.

ABOUT THIS REPORT

This Annual Report presents a comprehensive review of the Company's performance for FY 2024-25 and supports readers in understanding the various aspects of our business. It focuses on highlighting insights into the overall economy and the cement industry in particular as well as the outlook for the year ahead. It also covers financial performance, governance practices, risk management approach and allocation of resources. In line with the Integrated Reporting Framework, the Report incorporates core content elements which are presented below:

• Organizational Overview and External Environment

• Strategy and Resource Allocation

• Risks and Opportunities

• Sustainability Disclosures and Corporate Social Responsibility (CSR)

• Governance

• Our Business Model

Scope and Boundary

The Report covers the period from July 1, 2024 to June 30, 2025 and outlines significant events of the year, including the acquisition of Polypropylene (PP) Bags manufacturing unit and enhancement in solar captive capacity. Financial analysis and reviews take the lead from the audited financial information for the year ended June 30, 2025 with relevant comparative data in accordance with the accounting & financial reporting standards as applicable in Pakistan. It includes the Chairman's Review, CEO's Review, Directors' Report, Audit Committee's Report and the Statement of Compliance with the Code of Corporate Governance, prepared in accordance with the Companies Act, 2017, the Code of Corporate Governance Regulations and recognized governance practices.

In the current reporting year, FCCL has presented selected sustainability - related disclosure without formal adoption of IFRS S1 and S2.

External Assurance / Reviews

The financial statements have been audited and the Statement of Compliance with the Code of Corporate Governance has been reviewed by the external auditors, M/s A.F. Ferguson & Co, Chartered Accountants, while Sustainability Report has been reviewed by the independent consultant, M/S Nadeem Safdar & Co. FCCL is dedicated to maintaining the highest standards of corporate reporting and integrity while providing stakeholders with accurate and dependable information on the Company's performance.

We trust this Report will provide our readers with a clear understanding of the Company's performance, the progress achieved during the year and the direction we are pursuing for sustainable growth in the future.

• Disclosures on IT Governance and Cybersecurity

• Future Outlook

• Stakeholders Relationship and Engagement

• Financial Statements

• Analysis of Financial Information

• Information for Shareholders

VISION

To be a role model cement manufacturing Company, benefiting all stakeholders and fulfilling corporate social responsibilities while enjoying public respect and good will.

MISSION

FCCL while maintaining its leadership position in quality of cement maximizes profitability through reduced cost of production and enhanced share in domestic and international markets.

TABLE OF CONTENTS

01 01 - 53 02

54 - 69

Company's Overview

& External Environment

Strategy & Resource Allocation

03

Risks & Opportunities

05

70 - 79

128 - 133

04

Governance

06

80 - 127

134 - 199

Stakeholders' Relationship and Engagement

Sustainability Report

07 200 - 231 08

232 - 297

Financial Information

Financial Statements

09 298 - 322 10

323 - 333

Shareholders' Information

ودرا - نشیمرافنا زرڈلوہ رئیش

01

COMPANY'S

OVERVIEW & EXTERNAL

ENVIRONMENT

CHAIRMAN'S REVIEW

INNOVATING TOWARDS

02 A GREENER FUTURE

Dear Stakeholder,

Building upon the foundation laid in my inaugural review last year, I am pleased to report that Fauji Cement Company Limited (FCCL) has continued its upward trajectory, achieving meaningful progress across strategic, operational and financial dimensions. Notably, the Company delivered its highest ever profit, reflecting operational resilience, disciplined execution and prudent financial stewardship. These outcomes underscore the strength of our leadership and our unwavering commitment to innovating towards a greener future.

The Board takes great satisfaction in the Company's outstanding financial and operational performance during the year under review. Notable progress was made in enhancing energy efficiency and reducing input costs particularly through targeted initiatives to optimize fuel and power consumption and expand the renewable energy portfolio. These measures reaffirm FCCL's commitment to operational excellence and sustainable value creation.

This year, elections for the Board of Directors were held and the newly elected members assumed office in December 2024. I would like to extend my heartfelt appreciation to the outgoing Directors for their invaluable guidance and contributions in shaping the Company's strategic direction. I warmly welcome the incoming Directors and look forward to their diverse perspectives, and strategic insight as we continue our journey of transformation and sustainable growth.

At FCCL, the Board has instituted a strong governance and legal framework that ensures full compliance with applicable laws, regulatory standards and ethical business practices. This framework also reinforces the Company's zero-tolerance stance on corruption, fraud and any form of unethical conduct reflecting our core values of integrity, accountability and responsible leadership. As Chairman, I remain committed to ensuring that the Board continues to provide strategic oversight, with particular focus on risk management, policy direction and governance matters. I am pleased to report that the Board has diligently fulfilled its fiduciary responsibilities and remained actively engaged in guiding FCCL's strategic progress.

Fauji Cement Company Limited

On behalf of the Board of Directors, I would like to extend my sincere appreciation to all our shareholders for their continued support, valuable input and unwavering confidence in the Board. I also commend the Chief Executive Officer and the management team for their dedication, professionalism and disciplined execution of the Board's strategic vision. Their commitment has been instrumental in driving the Company's sustained progress and positioning FCCL for continued growth in an evolving industry landscape.

I assure all stakeholders that the Board remains fully committed to safeguarding shareholder interests and upholding the highest standards of corporate governance. FCCL advances on its path of innovation and sustainability, the Board's focus will remain on driving operational excellence, sector leadership and a future defined by purpose driven growth. With a clear vision and strong governance at the core of our strategy, I am confident that FCCL is well positioned to navigate through emerging challenges successfully and seize new opportunities in the years ahead.

Chairman, FCCL Board of Directors

Company's Overview & External environment 03

MANAGING DIRECTOR'S REVIEW

INNOVATING TOWARDS

04 A GREENER FUTURE

Annual Report 2025

Dear Stakeholder,

I am privileged to share that Fauji Cement Company Limited continues its tradition to pursue operational excellence, reaffirming our ability to thrive even amidst significant challenges. During the fiscal year 2024-25, our resilience and forward-looking strategies led to robust growth in both revenue and profitability. We recorded the highest ever turnover of Rs 89 Billion, reflecting a solid 11.25% year-on-year increase. Net Profit after Tax (PAT) of Rs 13.3 Billion is also ever highest, with a YOY increase of 63%. This has translated into earnings per share (EPS) of Rs 5.43 as of June 30, 2025. These results highlight our steadfast commitment to create long-term value for our stakeholders.

FCCL continued to prioritize cost reduction as a key strategic objective during the year. To support this target, the Company acquired a PP Bag Manufacturing Plant at Hattar, aiming to reduce packaging cost through a consistent supply of indigenously produced bags, which now meets 90% of FCCL's packaging requirements. Our commitment to transitioning toward sustainable and green energy also remained a key focus. We added another 15 MW of solar captive capacity bringing FCCL's total renewable energy capacity to 67.5 MW. In parallel, our Waste Heat Recovery (WHR) systems operated alongside daytime solar production to generate clean electricity, significantly reducing reliance on fossil fuels during peak hours. These green energy sources now enable us to meet around 80% of our daytime power needs.

FCCL achieved strong operational performance during the year, driven by a focused fuel mix strategy that increased local coal usage to 75% and alternative fuels to 12%. EBITDA rose to Rs 30.7 billion, reflecting improved capital efficiency and strong financial management. Despite prevailing market challenges, the Company attained 52% capacity utilization and total sales of 5.4 million tons.

In line with our core values of Health, Safety & Environment, our initiatives including large-scale tree plantation and water conservation efforts to promote sustainable water use, reinforce our dedication to reducing the carbon footprint of our operations while supporting long-term environmental stewardship. FCCL also achieved ESG readiness which is on track for full compliance with IFRS S1 and S2 SECP prescribed standards.

FCCL remains committed to uplifting the communities in which we operate. During the year, our Corporate Social Responsibility (CSR) initiatives remained focused on critical areas including education, women's empowerment, healthcare, environmental conservation and overall community development. Our steadfast commitment to

Fauji Cement Company Limited

societal progress is also reflected in our adherence to the highest Environmental, Social and Governance (ESG) standards. We firmly believe that long-term stakeholders' value is best achieved through the thoughtful, consistent and effective implementation of robust ESG initiatives.

As we look ahead to FY 2026, we anticipate a business environment shaped by both opportunities and challenges. Economic conditions are expected to gradually stabilize, aided by easing inflationary pressures and potential for more accommodative monetary policies. Nonetheless, uncertainties persist particularly those stemming from the ongoing impacts of climate change and global volatility. FCCL is well positioned to navigate these evolving dynamics. Our strategic investments in technological innovation, operational efficiency and sustainability initiatives position us to capitalize on emerging opportunities. By leveraging our strong market presence, diversified portfolio and forward-looking strategies, we remain firmly committed to delivering sustained value for our stakeholders.

I would like to express my heartfelt gratitude to our valued stakeholders for their continued trust and support. I am especially thankful to the Honorable Chairman and the Board of Directors for their strategic oversight, visionary leadership and steadfast guidance, each of which has been pivotal in navigating challenges and driving FCCL's sustained growth and success.

I also wish to acknowledge and appreciate the dedication, hard work and commitment of our Senior Management and Employees. Their efforts remain at the core of our operational effectiveness and continued progress.

In conclusion, FCCL's clear strategy and genuine commitment to doing things the right and sustainable way give us confidence to face future challenges and capitalize on emerging opportunities. We will remain focused on delivering consistent value to all our stakeholders and together, we will continue building a resilient and prosperous future.

CEO/MD FCCL

Company's Overview & External environment 05

HISTORY OF MAJOR EVENTS

1993

1997

2005

Incorporation of FCCL as public limited company

2012

2015

2018

Commercial production of 2nd Line of 7,200 TPD clinker capacity of European origin (Line II) at JB

• Listing on all three stock exchanges of Pakistan

• Start of plant operations (3,000 tpd clinker

production capacity European cement manufacturing line) (Line I) at JB

Commissioning of 12 MW Waste Heat Recovery Power Plant (WHRP) on Line-II

• Conversion of fuel from Furnace oil to Coal

• Installation of 30 tph Coal Plant

• Capacity enhancement of Line-II from 7,200 TPD to 7,600 TPD

• Commissioning of 9MW WHRP on Line-I

  2022

  • Amalgamation of ACL with and into FCCL

  • Commissioning of

  2.5 MW Solar Power Plant with total of 20MW at JB

  • Launching of New Product by the name of Tile Bond

  06 A GREENER FUTURE

  INNOVATING TOWARDS

  Annual Report 2025

  
  
  

  2006

  2008

  2010

  BMR to Increase clinker production capacity from 3,000 TPD to 3,700 TPD

  Commissioning of 5.4 MW dual fuel captive power plant

  Commissioning of 16.3 MW dual fuel Wartsilla power plant at JB

  2019

  2020

  2021

  Commissioning of 12.5 MW Solar Power Plant at JB

  • Commissioning of

    2.5 MW Solar Power Plant at JB

  • Shared services arrangement with Askari Cement Limited (ACL)

  • Announcement

    of Greenfield Project at D.G Khan and Brownfield at Nizampur

  • Commissioning of

    2.5 MW solar power plant at JB

    2023

    2024

    2025

    • Commissioning of Brownfield cement manufacturing Plant of 6500 tpd at Nizampur in 18 Months

    • Commissioning of Solar Power Plants at Wah and Nizampur, bringing total solar capacity to 40 MW

    • Implementation of SAP

• Commissioning of Greenfield Cement Manufacturing Plant of 6500 tpd in D.G Khan in 13 months

• Establishment of

  7.5MW and 5MW

  Solar Power Plants at D.G Khan and Nizampur plants bringing capacity to

  52.5 MW

  • Acquisition of Polypropylene (PP) Bags Manufacturing plant at Hattar KPK.

  • Increase in Solar captive capacity at Nizampur and Jhang Bhatar (JB) Plants by 10MW & 5 MW bringing capacity to

67.5 MW.

Fauji Cement Company Limited

Company's Overview & External environment 07

YEAR AT A GLANCE

Approval of Annual Accounts for FY 2024

32nd Annual General Meeting

Approval of 1st Quarterly Accounts of

FY 2025

15th Extra-ordinary General Meeting

Approval of Half Yearly Accounts of

FY 2025

Approval of 3rd Quarterly Accounts of FY 2025

Approval of Business Plan for of FY 2026

INNOVATING TOWARDS

08 A GREENER FUTURE

Annual Report 2025

SIGNIFICANT EVENTS FOR THE YEAR

Contribution to National Exchequer

48.24 Bn

Investment in Green

Solar Energy

Rs 1.86 Bn

Cement Sales

5.37 Mn Tons

Own Power Generation

59%

Highest Ever Profit

Rs 13.33 Bn

CSR Contribution

Rs 176.97 Mn

Cement Production

5.38 Mn Tons

Capacity Utilization

51%

Highest Ever Sales

Rs 88.96 Bn

Vertical Integration

Acquisition of PP Bags Manufacturing Plant

Fauji Cement Company Limited

Company's Overview & External environment 09

SIGNIFICANT EVENTS

OF THE YEAR

GEOGRAPHICAL LOCATIONS

Dera Ghazi Khan

Nizampur

Hattar

Wah Jhang Bahtar

Rawalpindi

Multan

INNOVATING TOWARDS

12 A GREENER FUTURE

Annual Report 2025

Fauji Towers, Block III, 68 Tipu Road, Chaklala, Rawalpindi

PRINCIPAL ACTIVITY

4th Floor, AWT Plaza, The Mall, Rawalpindi

1st Floor, United Mall, Abdali Road, Multan

Near Village Jhang Bahtar, Tehsil Fateh Jang, District Attock

Near Wah Railway Station, Tehsil Taxila, District Rawalpindi

Nizampur (Village Kahi) District Nowshera

Mauza Shadan Lund, Chak Ladan, Tehsil, District Dera Ghazi Khan

Polypropylene Bags Plant Phase-IV Industrial Estate Hattar

Fauji Cement Company Limited remains firmly anchored in its core mission: the manufacturing and supply of a diverse range of high-quality cement products. Our brands are not only among the most preferred choices for domestic consumers but have also earned significant approvals for use in critical national infrastructure, including major hydropower projects, a testament to their reliability and performance.

OUR

MARKETS

Company's customer base is divided in two main categories:

• Dealers Company has a wide network of dealers across Pakistan. Majority of local dispatches are made through the aforesaid dealers network.

• Mega Projects Dispatches to mega projects across the country are made directly.

The Company's primary export market is Afghanistan due to the strategic location of its plants. During the year, exports

accounted for 10% of the total dispatches, making FCCL the leading exporter to Afghanistan.

Fauji Cement Company Limited

Company's Overview & External environment 13

OUR

PRODUCTS

• High early and compressive strength (28 Days) upto 10,000 PSI

• Pure composition of 95% clinker and 5% gypsum

• Very little loss on ignition and low insoluble residue

• Suitable for general construction, reinforced concrete structures, high rise buildings, pavements and pre-cast members

• Long lasting and durable

• High quality Alkali-Silica resisting cement, effectively reduces possible damage due to Alkali aggregate reactions

• Useful for dams, hydropower projects, airports, retaining walls and other large structures

• Alkali content less than 0.6%

• 52.5N grade cement is a high-strength variety known for exceptional durability and robustness

• Extensively used in construction projects that demand superior strength, making it a top choice for building sturdy foundations and structures in challenging environments

• Heavy duty pavements and seismic zones

• Alkali content is less than 0.6%

  
  
  Fauji Tile Bond

  • High bonding strength

  • Ideal for all kinds of residential and commercial buildings

  • Compatible with all types of cement substrates

  • Ready to use (only water to be added)

  • Prevents silicosis - non-toxic material

Ordinary Portland Cement

INNOVATING TOWARDS

14 A GREENER FUTURE

Annual Report 2025