EngroCorp Engro.Corporation · Engro enters food business and sets up milk processing plant at...
Transcript of EngroCorp Engro.Corporation · Engro enters food business and sets up milk processing plant at...
Engro Fertilizers | Engro Eximp Agri Products | Engro Vopak Terminal | Engro Elengy Terminal | Engro Polymer & Chemicals
Engro Powergen | Engro Powergen Qadirpur | Engro Powergen Thar | Sindh Engro Coal Mining | Engro Foods | Engro Digital
www.engro.com EngroCorp Engro.Corporation
www.engro.com EngroCorp Engro.Corporation
our vision
to be the premier pakistani
enterprise with a global reach,
passionately pursuing value
creation for all stakeholders
www.engro.com EngroCorp Engro.Corporation
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”) 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 opinion 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
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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,
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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
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circumstances that arise after the date of this presentation and it does not make any representation, warranty (whether express or 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.
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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.
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www.engro.com EngroCorp Engro.Corporation
Revenue
$1,499 million
Market Cap of
$1,578 million with 4
Listed Entities
Pioneer in Thar Coal
Mining & Power
Generation
First LNG Terminal in
Pakistan
Sole Manufacturer of
PVC in Pakistan
Connects with 12
Million Customers
Pakistan’s premier
business conglomerate
Operating in Fertilizers, Power Generation,
Petrochemicals, Mining, Dairy,
LNG and Chemical Storage
engro in a snapshot
Import Substitution
~$850 Mn per year
www.engro.com EngroCorp Engro.Corporation
USD 400 million contribution to national exchequer
3,500 18,000employees indirect employees
our footprint in pakistan
Karachi Head Office
Thar Block II Coal Mining
Qadirpur Gas-fired Power Plant
Rice Mill
Chemical storage/ PVC manufacturing/ Terminal
Fertilizer Complex
Dairy FarmDairy Processing Plant
Dairy Processing Plant
www.engro.com EngroCorp Engro.Corporation
journey through time
Mari Gas field discovered
by Esso Mobil joint
venture
Esso Pakistan Fertilizer
Company incorporated
Exxon divests its Equity.
Company renamed Engro
Chemical Pakistan Limited
Engro enters chemical
storage & handling
business in JV with Royal
Vopak of Netherlands
Engro enters petrochemical
business and becomes sole
manufacturer of PVC in
Pakistan in JV with
Mitsubishi & Asahi Glass
Dawood Hercules
Corporation becomes
Engro’s patron shareholder
2003
Engro enters commodities
trading, automation, &
acquires stake in
Avanceon
Engro enters energy
business and begins work
on a 220 MW power plant
based on flared gas
Engro enters food
business and sets up
milk processing plant at
Sukkur
2005 2006 2007
Engro commences 1.3mt
Enven expansion project;
largest industrial
investment of $1.1 Bn
Engro Chemical Pakistan
demerges into diversified
conglomerate with Engro
Corp as the holding co
2009 2010
Back-Integration of Engro
Polymer completed;
BOD approves entry into
Rice business
Engro enters into a power
project in Nigeria; Engro
Ferts conducts an IPO
oversubscribed by 3x
Work commences on
Thar coal project Block-II
2013 2014 2015
Engro celebrates 50 years
since inception
Engro enters into strategic
partnership with Royal
FrieslandCampina for
Engro Foods
2015 2016
Commissions Pakistan’s
first LNG importing
Terminal in record time
1957 1965 1991 1995 1997 2002
2017
Engro forms strategic
partnership with General
Electric for Engro Digital
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current business portfolio
fertilizerstop 50 fertilizer manufacturers in
the world; 5 decades of
operations as a world class
business
poweroperating Pakistan’s first 217
MW power plant on permeate
gas; constructing a 2x330 MW
mine-mouth coal power plant
foods12 million consumer base; market
leader in Pakistan’s UHT market
and number 2 dairy dessert brand
miningin a JV with the Government of
Sindh and CMEC, developing
Pakistan’s first open-pit coal mine;
to become operational in 2019
petrochemicalsthe only fully integrated chlor-
vinyl chemical complex in
Pakistan producing PVC and
other chlorine byproducts
chemical storage & handlingPakistan’s first LNG receiving
terminal, and a integrated bulk
liquid chemical & LPG terminal
www.engro.com EngroCorp Engro.Corporation
corporate structure
Engro Corporation
Engro Fertilizer (56%)
Elengy Terminal Pakistan (80%)
Engro Polymer (56%)
Engro Foods (40%)
Engro Eximp Agriproducts
(100%)
Engro Vopak Terminal (50%)
Engro Powergen
(100%)
Engro Powergen Thar (Pvt) Limited
(50%)
Sindh Engro Coal Mining Co (12%)
Engro Powergen Qadirpur (69%)
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lending partners
development partners
engro’spartners
equity partners
Long-standing
collaborations
with global
companies
Strong
relationships with
multilaterals.
Consistently able
to develop world-
class bankable
projects
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our socio-economic impact
9Xgrowth in ten years
(in PKR terms)
27times voted amongst top 25
companies nationally
1.5Billion USD
In Revenue
#1employer in the country out
of 750 companies
11Mfarmers and dependents
impacted by our businesses
18Mpeople who use electricity
generated by us
Credit Rating Long Term AA
Short Term A1+
3,500employees
18KIndirect employees
180Kpeople trained
in our value chain
$400 Mtax contribution in 2016
12Khours volunteered by our
employees last year
4,500students supported in our
government adopted schools
400underprivileged students
enrolled in our technical
training centre
21Kfarmers trained
in wheat/rice belt
www.engro.com EngroCorp Engro.Corporation
key metrics
1,327 1,339
1,529
1,739 1,766
1,499
1,023
0
500
1,000
1,500
2,000
2011 2012 2013 2014 2015 2016 9M-2017
US
D M
n
Sales Revenue (USD Mn)
2,044 1,951 1,9592,159
1,870
2,782 2,872
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2011 2012 2013 2014 2015 2016 9M-2017
US
D M
n
Total Assets (USD Mn)
405484
766
1,154
1,394
1,5861,505
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011 2012 2013 2014 2015 2016 9M-2017
US
D M
n
Market Cap (USD Mn)
*Capital
Gain
93
14
77 69
134
104
112
659
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015 2016 9M-2017
Net Profit (USD Mn
555*
www.engro.com EngroCorp Engro.Corporation
74% 71%37% 19%
239%172%
81% 36%
313%243%
118%55%
ECorp KSE All Share Index ECorp KSE All Share Index
5 Years 3 YearsDividend Yield Capital Gains Yield Total Shareholder Yield
shareholder return
10
10
30
50
70
90
110
130
150
Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17
Engro Corporation Limited (KASE:ENGRO) - Percentage Change
KSE All Share Index - Percentage Change
Total Shareholder Return Ecorp vs KSE (All Share)
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recognized globally & locally
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employer awards
safety awards
governance awards
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Engro’s flagship project under construction
With Investment of USD 2 B it is the largest private sector
investment in CPEC
1.57 Billion tons of exploitable coal reserves (Block II) on 97.7
sq. kilometers land that can produce 5,000 MW for 50 years!
▪ 3.8 Mtpa Open Cast Mine
▪ Project cost ~ USD 845 Mn
▪ 75:25 Debt to Equity Ratio
▪ 51% of the workforce hired from within locals
▪ 2x330 MW Mine Mouth Power Plants
▪ Project cost ~ USD 1.1 Bn
▪ 75:25 Debt to Equity Ratio
▪ 40% of the workforce hired from the local area
thar projects
.
.
.
China
Machinery
Engineering
CorporationGovernment
of Sindh