Corporate Briefing 2019 September 26, 2019 Karachi Corporate - - PowerPoint PPT Presentation

Century Paper & Board Mills Limited

Corporate Briefing 2019

September 26, 2019 Karachi

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

Contents:

 Lakson Group Intro.

 Company Intro.  Capacities and Market Share  Sustainability at CENTURY  CSR at CENTURY  Historical Financial Performance  Financial Results (FY2019 vs. FY2018)  Future Outlook

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

A Brief Introduction

• f

LAKSON GROUP OF COMPANIES

Century Paper & Board Mills Limited – Corporate Briefing 2019

Introduction: Group was founded by Mr. Hasan Ali Karabhai in 1954 as a Trading Concern. Presently Group Portfolio Consists of:

 Soaps & Detergents  Toothpastes & Surface Care Products  Internet Services & Software Development  Cloud Computing & Call Centers  Paper & Paperboard Manufacturing  Printing & Packaging  Publications & Media  Food & Fast Food Restaurant Biz  Agriculture (Drip Irrigation)  Surgical Instruments Biz  Insurance & Investments  Travelling & Tour Operations

Lakson Group of Companies

Century Paper & Board Mills Limited – Corporate Briefing 2019

Lakson Group - Major Associated Companies

Colgate-Palmolive Inc. USA

(Joint Venture)

McDonalds Corporation, USA

(Franchise) International New York Times, USA

Ajinomoto-Co, Inc. (Japan)

(Joint Venture)

Lakson Group –Foreign alliances

Century Paper & Board Mills Limited

(A Lakson Group Company)

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Core Values

1990 :

Started Commercial Production With PM-1, PM2 & PM-3 Total Capacity 30,000 TPY

1997:

Added PM-4 Multilayer Board Machine. (36,000 TPY) Total Capacity : 66,000 TPY

2003:

Added PM-5 Twin layer Board Machine (24,000 TPY) Total Capacity: 90,000 TPY

2006:

Added PM-6 MF Paper Machine (20,000 TPY) Total Capacity : 110,000 TPY

2008:

Added PM-7 Multilayer Coated Board Machine: (130,000 TPY) Total Capacity; 240,000 TPY

Milestones: (Capacity Related)

1996 Added Power Generation Plant Co-Gen-1 12.3 MW 2002 Installed Effluent Treatment Plant (DAF) 2005 Converted Power Generation to dual Fuel (Gas / Oil 2008 Added Co.Gen-2 20 MW 2016 Installed Co.Gen3 (Coal Based) 18 MW 2003: Added Corrugated Cartons Making Unit

Milestones : (Others Developments)

2019 Installed Solar Panels of 1.3 MW

Century Paper & Board Mills Limited – Corporate Briefing 2019

CURRENT INSTALLED CAPACITY

(Product Category Wise Break Up – TPY)

Coated Packaging Boards 170,000 71%

BXP 30,000 13% Un-Coated Board 20,000 8% MF Papers 17,000 7% MG Papers 3,000 1%

240,000 TPY

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century – Market Share - Coated Packaging Boards

Century 36% Others Comparable Quality 13% Others Low Quality Segment 32% Imports 19%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Market Share – All Paper & Board Products

Century 11% Others 56% Imports 33%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Major Customers / Regular End Users:

Sustainability

at

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Sustainable in Actions

• Installation of Solar Power of 2.00 MW
• Use of Effluent Treated Water in Pulp mills and other areas
• Water Conservation Projects
• Using Agriculture Residuals Based Fiber

Century Paper & Board Mills Limited – Corporate Briefing 2019

Solar Power Panels

Installation of Solar Power Panels in Progress utilizing the large roof area.

Century Paper & Board Mills Limited – Corporate Briefing 2019

Secondary Waste Water Treatment Plant

Secondary Biological water Treatment Plant installed in 2015 at a cost of 2.5 Million US $.

Century Paper & Board Mills Limited – Corporate Briefing 2019

Use of Treated Recycled Water for Plantation

CSR

At

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Sponsoring Schools within 25Km radius of Plant

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Smart Schools



Joint venture with Institute of Rural Management (IRM).



One Room Classroom Schools – Established in Less Privileged Communities Areas.



Focus on such non-school going children involved in child labor by way of garbage collection etc.



Parents’ Counseling about the importance and necessity of education.



Health Checkups of Students

Century - Smart Schools

COMPUTER TRAINING

For Employees Children

Employees’ Families Festivities at Plant

Historical Financial Performance

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Production (M. Tons)

186,000 175,000 163,000 186,000 214,000 229,400 227,600 78% 73% 68% 78% 89% 96% 95%

0% 20% 40% 60% 80% 100%

• 50,000

100,000 150,000 200,000 250,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Prodution (M.Tons) Capacity Utilisation

Century Paper & Board Mills Limited – Corporate Briefing 2019

Sales Volumes (MT) & Gross Sales (PKR -Millions)

180,723 170,225 157,124 176,481 203,752 214,129 216,771 16,513 17,132 15,391 15,603 18,021 22,191 25,993

• 5,000

10,000 15,000 20,000 25,000 30,000

50,000 100,000 150,000 200,000 250,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Sales Volume (M.Ton) Gross Sales (Rs' MLN)

Century Paper & Board Mills Limited – Corporate Briefing 2019

EBITDA (PKR -Millions) & ROCE (%)

3,007 2,441 1,307 1,669 2,223 2,880 2,985 18% 13% 2% 6% 11% 15% 14% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

EBITDA (Rs.' MLN) ROCE (%)

Financial Results (FY2019 vs FY2018)

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Turnover & COGS (PKR - MLN)

18,965 16,459 22,241 19,578

5,000 10,000 15,000 20,000 25,000

Turn Over COGS 2018 2019

17% 19%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Gross Profit and Operating Profit (PKR -MLN)

2,506 1,891 2,663 2,001 500 1,000 1,500 2,000 2,500 3,000 Gross Profit Opertating Profit 2018 2019

6% 6%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Finance Cost and Net Profit (Rs.’ MLN)

460 992 762 884

• 200

400 600 800 1,000 1,200 Finance Cost Net Profit 2018 2019

66% 12%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Earnings and Dividend (Rs./Share)

6.25 2.25 5.80 1.00

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 Earning Per share Dividend Per Share 2018 2019

Century Paper & Board Mills Limited – Corporate Briefing 2019

Distribution to Shareholders (Rs.’MLN) Particulars 2019 2018

Ordinary Dividend

Interim

• 220,528

Final 147,018 110,264

Total Ordinary Dividend

147,018 330,793

Preference Dividend

31,584 75,990

Total

178,602 406,783

Dividend Payout

20% 41%

Future Outlook

Century Paper & Board Mills Limited – Corporate Briefing 2019

Future Outlook

• Prevailing Fiscal & Monetary measures have slowed down the economic growth.
• Near term Outlook is Challenging.
• Market Size may stay Stagnant or Shrunk.
• Energy cost to stay high – No system Gas is available till now.
• Market has liquidity crunch for various reasons
• Company has preparedness to face these challenges:
• Established reputation as reliable supplier of quality products.
• Its products are considered Perfect Imports Substitution
• Various Initiatives to reduce costs with efficiencies are in place.
• Company is exploring export business and initial feed back is encouraging

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

Q & A Session

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

THANKS