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Engro Corporation www.engro.com Important Disclaimer THIS - - PowerPoint PPT Presentation
Engro Corporation www.engro.com Important Disclaimer THIS - - PowerPoint PPT Presentation
Engro Corporation www.engro.com 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 Engro Corporation Limited (Engro)
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This presentation has been prepared by Engro Corporation Limited (“Engro”) solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein, or any
- pinion rendered thereto. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be
updated to reflect any developments that may occur after the date of the presentation. Neither Engro nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted. The presentation may contain statements that reflect Engro’s own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the future, which are beyond Engro’s control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Engro does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation and it does not make any representation, warranty (whether express
- r implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In addition, past performance should not be taken as an
indication or guarantee of future results. Certain data in this presentation was obtained from various external data sources that Engro believes to its knowledge, information and belief to be reliable, but Engro has not verified such data with independent sources and there can be no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of the included data. Accordingly, Engro makes no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. You agree to keep the contents of this presentation strictly confidential. All or any part of this presentation may not be taken away, reproduced, copied, redistributed, retransmitted or disclosed in any manner or form and for any purpose whatsoever. By attending this presentation, you are agreeing to be bound by the foregoing limitations.
Important Disclaimer
THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT
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Engro In A Snapshot
Engro is Pakistan’s premium conglomerate and voted 27 times among the top 25 organizations in Pakistan Operating in Fertilizers, Power Generation, Telecom Infrastructure, Petrochemicals, Mining, Dairy, LNG and Chemical Storage
Financial Highlights Scale People & Impact Import Substitution $2Bn 10-year CAGR 11% Credit Rating AA+ Total Employees 3.3K 2019 Revenue $1.5Bn Tax Contribution $285Mn Market Capitalization $1.3Bn Farmer Impact $12Mn
Market Capitalization as at December 31st, 2019 Note: Figures converted at PKR/USD 2019 Average
2019 Dividend $92Mn Total Assets $3.7Bn Vocational Trainings 870+ Community Investments $3Mn
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Our Footprint In Pakistan
USD 285 million contribution to national exchequer 3,300 employees 18,000 indirect employees Rice Mill Dairy Processing Plant Qadirpur Gas-fired Power Plant Fertilizer Complex Dairy Farm Dairy Processing Plant Karachi Head Office Thar Block II Coal Mining Chemical storage/ PVC manufacturing/ Terminal
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Our Journey Through Time
Engro has grown exponentially over the past 5 decades by adding new verticals and enhancing existing ones
1957 1965 1991 1995 1997 2005 2006 2007-09 2010 2014 2016 2017 2018 2019
Advent Esso Mobil JV Fertilizer Esso Pakistan Fertilizer created
ESSO Pakistan Fertilizer Company
Divestiture Exxon divests. Company renamed Engro Chemical Pakistan Limited Chemicals JV with Royal Vopak to enter into the chemical business PVC Becomes sole manufacturer of PVC in Pakistan through a JV with Mitsubishi Energy Enters energy business and begins work on a 220 MW power plant Food Enters food business Expansion Commences expansion; largest industrial investment of $1.1Bn Demerger Demerger into a conglomerate with ECorp as the Hold Co Thar & LNG
- Work on Thar begins
- LNG Terminal
Food Partners with RFC for EFoods Transformation Projects Initiated
- One SAP
- Human Capital
Transformation Engro & Vopak Engro Corporation and Royal Vopak sign LNG infrastructure agreement Thar & Enfrashare
- Thar
achieves COD
- Engro
enters Telecom Infra- structure sector
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Current Business Portfolio
Fertilizers
Top 50 fertilizer manufacturer in the world; 5 decades of operations as a world class business
Dairy
12 million consumer base; market leader in Pakistan’s UHT segment and number 2 dairy dessert brand
Energy & Mining
Operating Pakistan’s first 217 MW power plant on permeate gas; Operating first ever 2x330 MW mine-mouth coal power plant; Managing Pakistan’s first open-pit coal mine
Petrochemicals
The only fully integrated chlor-vinyl chemical complex in Pakistan producing PVC and other chlorine byproducts
Chemical Storage & Handling
Pakistan’s first LNG receiving terminal, and an integrated bulk liquid chemicals and LPG terminal
Telecom Infrastructure
Operating an independent tower company with a view to engage all the Mobile Network Operators to cater to their network deployment needs
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Corporate Structure
Engro Corporation
Engro Fertilizers (56%) Elengy Terminal (56%) Engro Polymer (56%) Engro Foods (40%) Engro Vopak (50%) Engro Eximp Agriproducts (100%) Engro Energy (100%) Engro Powergen Thar (51%) Sindh Engro Coal Mining (12%) Engro Powergen Qadirpur (69%)
Listed Entities Unlisted Entities
Engro Infiniti (100%) Enfrashare (100%)
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Engro’s Partners
Long-standing collaborations with global companies Strong relationships with multilaterals Consistently able to develop world-class bankable projects
Equity Partners Lending Partners Development Partners
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1,502 1,141
FY 2019 FY 2018
Engro Corporation Consolidated - Business Revenue
Segment-wise Revenue (USD Millions) Business FY 2019 FY 2018 Growth Fertilizers 807 726 11% ▲ Energy 333 79 4x ▲ Polymer and Chemicals 252 235 7% ▲ Terminals 111 106 5% ▲ Foods / Rice 283 233 22% ▲ Revenue grew by 32%:
▪ Higher realized Urea prices and improved product availability ▪ Contribution from new energy projects in Thar delivered in 2019 ▪ Higher domestic PVC premiums despite challenging
macroeconomic conditions 32% ▲
Revenue (USD Millions)
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201 157
FY 2019 FY 2018
Engro Corporation Consolidated - Business Profits
Standalone Profit After Tax increased by 12%:
▪
Higher dividend and interest income Consolidated Profit After Tax increased by 28%:
▪
Thar Energy projects contribution to PAT post COD on July 10th
▪
Record production in EFert due to plant efficiency and gas availability
▪
Lower profitability in Polymer due to inflationary impacts and a one-time gain recorded in 2018
▪
Recognition of an impairment provision relating to the investment in FCEPL in accordance with IAS 36
Segment-wise Profit (USD Millions) Business FY 2019 FY 2018 Growth Standalone 95 85 12% ▲ Fertilizers 112 116 3% ▼ Energy 59 11 6x ▲ Polymer and Chemicals 24 33 26% ▼ Terminals 34 26 32% ▲ Foods / Rice (6) 3 3x ▼ FCEPL Impairment (8)
- Consolidated
201 157 28% ▲
Profit After Tax (USD Millions)
28% ▲
Energy loan component USD 22 Mn Energy loan component USD 9 Mn
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Engro Corporation Consolidated – Debt Profile
Credit Rating - PACRA Company Long-term Rating Short-term Rating Engro Corporation AA+ A1+ Engro Fertilizers AA A1+ Engro Polymer and Chemicals AA- A1+ Engro Powergen Thar A A1 Engro Elengy Terminal AA- A1
Long-term Borrowings (USD Millions)
▪ Consolidated long-term borrowings increased primarily due to drawdowns for Thar coal power project and EPolymer expansion projects V/S
Healthy balance sheet allowing the Company to increase leverage for future growth opportunities!
41:59
Gearing Ratio FY 2018
45:55
Gearing Ratio FY 2019
Credit Rating improved in 2019 1,054 874
FY 2019 FY 2018
Energy
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Thar Coal Mining & Power Project Update
Development of the 3.8 million tons per annum mine under Sindh Engro Coal Mining Company (SECMC) in the first phase Development of 2 x 330 MW mine mouth power plants under Engro Powergen Thar Limited Commenced construction of Phase II of the mine expansion which will enhance production to 7.6 million tons per annum Key Highlights: ▪ Both SECMC and Engro Powergen Thar Limited, declared Commercial Operations Date (COD) on 10th July 2019 ▪ Both mine and power plant have been running smoothly since COD ▪ In 2019, over 2.28 million tons of coal have been supplied by the mine to the power plant ▪ Potential to become cheapest source of electricity in the country at full base load ▪ The company is actively working with all stakeholders to address the circular debt challenge With this accomplishment, Engro is using indigenous resources to help alleviate the energy crisis that Pakistan faces and has,
- nce again, proven its ability to deliver on mega projects that
enable development for the people of this nation
Strategic Direction
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The Pressing Issues of Our Time
Global challenges have the potential to translate into an existential threat for Pakistan Impact of climate change coupled with inefficient practices can have a catastrophic impact Ever rising population and a growing middle class will result in a strain on resources The imbalance between domestic output and consumption will continue to put pressure on Balance of Payments Solutions will have to be innovative and beneficial for all socio-economic classes 1 2 3 4 5 6 Availability of Affordable Energy Water Scarcity Food Security Underdeveloped Storage & Logistics Balance of Payments Crisis Growing Digital Divide
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Engro’s Portfolio
Engro’s current portfolio has value chains across four key verticals enabled with leading-edge technology
Chemical Storage & Terminals
Energy & Infrastructure
Mining Power Generation Energy Water Scarcity
Petrochemicals
PVC Manufacturing Balance of Payments
Connectivity
Connectivity Telecom Towers Dairy
Food & Agriculture
Rice Processing Fertilizer Water Scarcity Food Security Agri Storage & Logistics
Various pilot projects and feasibility studies are underway across the four verticals
Awards
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Awards and Recognition
Pakistan's Most Outstanding Company in the Industrial Sector Coal Power Project
- f the Year
Pakistan’s Deal
- f the Year
Best Investor Relations (Runner-up) Top 25 Companies Of the Year 2018 Safety, Environmental Compliance, Energy Efficiency breeding ground for next generation of safety leaders PAVE Project
/Engro.Corporation /EngroCorp www.engro.com