AZGARD NINE LIMITED Corporate Briefing Session For the Financial - - PowerPoint PPT Presentation

AZGARD NINE LIMITED

For the Financial Year Ended on June 30, 2019

Corporate Briefing Session

Briefing Agenda

• Plant Location and Capacities
• Strength, Weaknesses, Opportunities, Threats

(SWOT) Matrix.

Company Brief

01

• Updates for the Year 2018-19
• Creditors’ Scheme of Arrangement

Developments

02

• Six Years at a Glance
• Graphical presentation of Financial Results
• Future Prospects

Financial results

03

• Q/A session

Questions & Answers

04

COMPANY BRIEF - UNITS

Location Units

2019 2018 Comment

Open End Spinning - Manga

• No. of Rotors

Unit I: 3,304 3,304 Installed Capacity - Kgs. 2.5K.M. Off: Manga, Raiwind Road, LHR 12,184,435 12,184,435 Actual Production - Kgs. 9,205,399 8,025,873 Capacity Utilized % 76% 66% Favorable trend.

Ring Spinning - Muzafargarh

• No. of Spindles

Unit II: 54,888 54,888 Installed Capacity - Kgs. Alipur Road, Muzaffaragarh. 14,668,821 14,668,821 Actual Production - Kgs. Capacity utilized % 0% 0% Idle Capacity

Denim - Manga

• No. of Loom

Unit I: 242 242 Installed Capacity - Mtrs. 2.5K.M. Off: Manga, Raiwind Road, LHR 40,037,984 40,037,984 Variation due to Actual Production - Mtrs. 28,282,616 30,427,617 Production Mix Capacity utilized % 71% 76%

Garments – Manga & Ferozpur Unit I, III & IV:

Manga - Stitching Machines 2.5K.M. Off: Manga, Raiwind Road, LHR 2,996 2,824 Manga - Installed Capacity - Pcs. 20KM Off: Ferozepur Road, 6KM, 14,280,000 13,680,000 Actual Production - Pcs. Bedian Road, Mouza Attari Saroba, Tehseel Cant, Lahore 10,479,097 9,812,931 Capacity utilized %

Atta Buksh Road, 18-K.M. Off: Ferozepur Road,

73% 72% Favorable trend. Mouza Atari Saroba Tehseel Cantt, LHR

ANL - SWOT ANALYSIS

As on June 30, 2019

SWOT Matrix

S W O T

• Increasing demand as seen through

growth in Sales by 26% in 2018-19.

• Maintaining competitiveness through

cost reduction.

• Internationally recognized

certifications on quality, environment and labour welfare.

Strengths

• Financial Restructuring Approval from

LHC will positively change the Balance Sheet.

• Growth opportunities due to rupee

Devaluation by 30%.

Opportunities Weaknesses

• Deteriorating Local Economy.
• Slowdown in world’s economic growth
• USA/China Trade Wars.
• Unstable Turkish Market.
• Increase in Interest rates (7.92% to

13.397%)

• Reduction of DLTL by almost 50%.
• High Gas rates in Punjab, prices

linked to dollar.

Threats

• Liquidity issues due to pending

DLTL/Sales tax refunds.

• Competitiveness issues due to tough

Competition within region.

• Higher Financing rates.

Updates for the Year 2018-19

Rented Facility from M/S: Irfan Textiles (Pvt.) Ltd became operational. October 08, 2018 Honorable Lahore High Court verbally Approved Creditors’ Led Scheme of Arrangement in Court January 31, 2019 EOGM - Sale/Disposal of a spinning unit located at Muzaffargarh, a stitching unit at FPR July 30, 2019 Honorable Lahore High Court verbally Approved Creditors’ Led Scheme of Arrangement in Court. July 31, 2019

As communicated to Pakistan stock Exchange (PSX) during the year 2018- 19. Material Information:

Updates for the Year 2018-19

As communicated to Pakistan stock Exchange (PSX) during the year 2018- 19. Material Information:

Certified copy of Honorable Lahore High Court’s Judgement about creditor’s scheme of arrangement delivered to PSX. August 09, 2019 Certified copy of creditor’s scheme of arrangement delivered to PSX. October 16, 2019 Financial results of First Quarter of 2019-20:

Sales Growth 18.9% , PAT 130.8M (-9.7M: 2019-20 1Q)

October 28, 2019 Corporate Briefing Session.

• Nov. 19, 2019

Six Years at a glance – Rs. Million

13,302 10,702 13,176 12,802 15,982 20,215

• 5,000

10,000 15,000 20,000 25,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Sales - net

13,302 10,702 13,176 12,802 15,982 20,215 (31) 115 600 932 1,423 2,064 (2,126) (2,934) (814) (134) 197 305 (5,000)

• 5,000

10,000 15,000 20,000 25,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Sales/ Operating Profit/(Loss)/Profit After Tax

• Rs. in Million

Sales - net Operating profit / (loss) Profit / (loss) after tax

Sales Versus Assets

• Rs. Million

13,176 12,802 15,982 20,215 18,271 18,690 19,867 22,686

• 5,000

10,000 15,000 20,000 25,000 2015-16 2016-17 2017-18 2018-19

Net Sales Vs. Total Assets

Sales - net Total Assets 13,176 12,802 15,982 20,215 13,194 13,169 13,215 13,358

• 5,000

10,000 15,000 20,000 25,000 2015-16 2016-17 2017-18 2018-19

Net Sales Vs. Property, Plant & Equipment

Sales - net Property Plant & Equipment

Financial Position – Rs. Million

16,630 17,620 18,707 21,272 1,288 842 732 351 353 228 429 1,064

• 5,000

10,000 15,000 20,000 25,000 2015-16 2016-17 2017-18 2018-19

Equity Vs. Current Liabilities Vs. Non-Current Liabilities

Current Liabilities Non-Current Liabilities Equity incl. surplus 353 228 429 1,064 7,688 7,702 7,818 8,065

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2015-16 2016-17 2017-18 2018-19

Equity Vs. Long-Term Debt

Equity incl. surplus Long term debt

Future Outlook – Creditors’ Scheme of Arrangement

• Scheme of Arrangement provides for raising of finance to

completely/partially pay-off the financial creditors.

• These finances will be raised by way of:

A) Sale of Two non-core units of the company. B) Issuance of shares as right issue. C) Issuance of some new TFCs. D) Sale/Adjustment of some Old TFCs.

Future Outlook – Creditors’ Scheme of Arrangement

As per scheme, the company’s liabilities and how they are proposed to be restructured are as follows:

• Company’s Total Liability: Rs. 17,392,993,398/- (As on

30.06.2017)

• Total Amount to be restructure under the scheme: Rs.

13,120,622,467/-

• Total Amount that will not to be restructured: Rs.

4,272,370,931/-

Future Outlook – Creditors’ Scheme of Arrangement

Three Options available to creditors:

• OPTION A: To receive 15% of its principal amount and 10% of its

markup amount and some TFCs upfront, in exchange for foregoing amount.

• OPTION B: To receive 10% of markup and some TFCs upfront in

exchange for foregoing the remaining markup and some TFCs and to settle/restructure 100% of its principal amount over a period of time as stated in the scheme.

• OPTION C: To settle/restructure 100% of its principal amount as

well as receive 100% of its markup and some TFCs amount over a period of time as stated in the scheme.

Thank You

Questions & Answers

ANL – Corporate Briefing Session