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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 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 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.
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,
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By attending this presentation, you are agreeing to be bound by the foregoing limitations.
Important Disclaimer
3 www.engro.com EngroCorp Engro.Corporation
our visionto be the premier Pakistani enterprise
with a global reach passionately
pursuing value creation for all
stakeholders
4 www.engro.com EngroCorp Engro.Corporation
Engro In A Snapshot
Revenue
$1,219 million
Market Cap of
$1,277 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
Import Substitution
~$850 Mn per year
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Our Footprint In Pakistan
USD 400million
contribution to national
exchequer
3,500employees
18,000indirect
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
6 www.engro.com EngroCorp Engro.Corporation
Journey Through Time
1957
Mari Gas field discovered by Esso Mobil joint venture
Esso Pakistan Fertilizer Company incorporated
Exxon divests its Equity. Company renamed
Engro Chemical Pakistan Limited
1965 1991 1995
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
1997 2002
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 EngroCorp 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 onThar 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
2017
Engro forms strategic partnership with General Electric for Engro Digital
7 www.engro.com EngroCorp Engro.Corporation
Engro Today
Financial
Highlights
Scale
People &
Impact
Import Substitution
$2bn
Growth
8X*Credit Rating
AA+
Employees
4K
Revenue
$1.4Bn
Tax
Contribution
$330Mn
Market Cap
$1.3Bn
Farmer Connect
12Mn
Engro is Pakistan’s premium conglomerate and voted 27 times among the top 25 organizations in Pakistan
*Over the last decade
Market Cap as of December 31st, 2018.
8 www.engro.com EngroCorp Engro.Corporation
Current Business Portfolio
Fertilizerstop 50 fertilizer
manufacturers in the world;
5 decades of operations as
a world class business
Energyoperating Pakistan’s first 217
MW power plant on permeate
gas; constructing a 2x330 MW
mine-mouth coal power plant
Dairy12 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
9 www.engro.com EngroCorp Engro.Corporation
Corporate Structure
Engro Corporation
Engro
Fertilizer
(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
10 www.engro.com EngroCorp Engro.Corporation
Engro’s PartnersLong-standing collaborations with global companies
Strong relationships with multilaterals.
Consistently able to develop world-class bankable projects
Equity Partners
Leading Partners
Development Partners
11 www.engro.com EngroCorp Engro.Corporation
Shareholder Return
77%28%
206%
138%
24%
26%
283%
138%
52%26%
ECorp KSE All Share Index ECorp KSE All Share Index
5 Years 3 Years
Total Shareholder Return ECorp vs PSX 100
Dividend Yield Capital Gains Yield
-20%
0%
20%
40%
60%
80%
Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18
ECorp vs. PSX 100 Percentage Change in Price
PSX 100 Engro
12 www.engro.com EngroCorp Engro.Corporation
ECorp Consolidated – Revenue FY 2018
Revenue (USD Millions)
Revenue grew by 33% (excluding Engro Foods)
▪ Higher Urea sales volume and prices
▪ Higher PVC production and sales as a result of
successful debottlenecking of PVC / VCM plant
Segment-wise Revenue (USD Millions)
Business 2018 2017 Growth
Fertilizers 889 628 42% ▲
Polymer and
Chemicals287 226 27% ▲
Energy 97 95 3% ▲
Terminals 129 111 16% ▲
Foods 285 296 (4%) ▼
33% ▲
1,396
1,046
FY 2018 FY 2017
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ECorp Consolidated – Profit After Tax FY 2018
Profit After Tax (USD Millions)
Standalone Profit After Tax increased by 12%:
▪ Higher profitability due to gain on sale of Elengy in
2018 offset by lower dividend from EFoods & Elengy
Consolidated Profit After Tax increased by 45%:
▪ Significant improvement in profitability due to Fertilizer
and Petrochemicals businesses performance
Segment-wise Profit (USD Millions)
Business 2018 2017 Growth
Standalone 104 93 12%▲
Fertilizers 142 91 56% ▲
Polymer and
Chemicals40 17 140% ▲
Energy 13 14 (7)% ▼
Terminals 31 34 (7)% ▼
Foods 3 1 302% ▲
Consolidated* 192 133 45% ▲
45% ▲
*excludes EFoods
192
133
FY 2018 FY 2017
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ECorp Consolidated – Debt Profile
Long-term Borrowings (USD Millions)
Credit Rating - PACRA
CompanyLong-term
Rating
Short-term
Rating
Engro Corporation AA+ A1+
Engro Fertilizers AA- A1+
Engro Polymer and Chemicals A+ A1+
Engro Powergen Thar A A1
Engro Elengy Terminal A+ A1
▪ Consolidated LT borrowings increased primarily due to
drawdowns for Thar coal power project
V/S
Healthy balance sheet allowing the Company to increase leverage for future growth opportunities!
35:65Gearing Ratio in FY
2017
41:59Gearing Ratio in FY
2018
Credit Rating improved in 2018
1,069 738
FY 2018 FY 2017
15 www.engro.com EngroCorp Engro.Corporation
Recognized Globally & Locally
▪ ACCA WWF-PERA Award for becoming the first organization in Pakistan to adopt the
integrated reporting model in their Annual Report 2013
▪ Investor Relations Awards by CFA Society Pakistan in 2013 and 2014
▪ Best Corporate Report Award in its category and the Best Sustainability Report Award by joint
committee of ICAP and ICMAP in 2014
▪ Best Corporate Governance in Pakistan Award by World Finance in 2014
▪ Won the ‘Most Preferred Graduate Employer 2017 ‘ award by Pakistan Society of
HRM.
▪ Recognized as the most gender diverse company in Pakistan in the ‘Gender and
Diversity Conference 2016’ organized by HR Metrics
▪ Engro Vopak completed 19 years of safe operations without any lost work injury in 2016
▪ Engro Vopak secured 98% score in 2016 in THA (Terminal Health Audit) which is currently highest
score globally in the VOPAK World
▪ DuPont Safety and Sustainability Award won by Engro Fertilizers in the category of “Stakeholder
Engagement for Sustainability” in 2013
▪ Fire Safety Award by National Forum for Environment & Health in 2013
Safety Awards
Employer Awards
Governance Awards
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Thar ProjectsEngro’s flagship project under construction
With Investment of USD 2 Bn 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
.
.
.
China
Machinery
Engineering
CorporationGovernment
of Sindh
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Our Pillars
Agri –
Solutions
Engro Corporation creates long-term shareholder value by developing platforms of growth for our current
portfolio and identifying new growth opportunities that provide superior returns
ConsumerEnergy
InfrastructurePetrochemicals
TECHNOLOGY
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Demographics of Pakistan
Average
Household
7 People
50% Male
50%
Female
Nominal GDP
2015: USD
270 Bn
2021: USD
487 Bn
Life
Expectancy
2015: 66.4
Years
2030: 68.8
Years
65% below
30 years
(10th most
populous
country)
GDP Per
Capita
2015: USD
5,000
2021: USD
6,648
6th Most Populous
Country
1/2 of the population to live
in urban centers by 2025
133 Mn Population
under the age of 30
2 in 5 of the Labor force
Employed in Agriculture
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Opportunities: Agri-solutions sector
There is an opportunity for a tech enabled platform to significantly improve the economic output of this sector
farmer
farm
advisory
cold storage &
warehousing
transportation
crop grading and
selection mechanisms
assistance with formal
sector lending
enabling mechanization
through rentals and leases
high-quality and
customized inputs as
per soil and crop
22 www.engro.com EngroCorp Engro.Corporation
Opportunities: Consumer
Increased
population
with middle
class
gaining
critical mass
Continued
focus on
essential
items with an
aspiration for
a better life
Including the informal economy, Pakistan is
already within the spending
sweet spot
Increased
urbanization
driving real
estate
prices
upwards
Emerging countries ahead of Pakistan
exhibit strong consumer trends that enable a
better lifestyle
Prices of
aspirational
durable
goods
dropping on
an inflation
adjusted
basis
23 www.engro.com EngroCorp Engro.Corporation
Opportunities: Energy Infrastructure
Thar Coal IPP’s
Wind and Solar
Additional Thar mines
Greenfield Hydro
Transmission Lines LNG Infrastructure
24 www.engro.com EngroCorp Engro.Corporation
Opportunities: Petrochemicals
Operational &
Reliability Efficiencies
PVC resin
& PVC downstream
Chlorine & Hydrogen
derivatives
Caustic Soda
& flakesEthylene Cracker
25 www.engro.com EngroCorp Engro.Corporation
Opportunities: Technology as an Enabler
Agri –
SolutionsConsumer Energy Infrastructure Petrochemicals
Technology can provide
the tools necessary to
integrate the complete
agri value chain (from
farmer to consumer) in
a manner that
maximizes value
creation for all
stakeholders
In the big data and
analytics era,
technology can enable
smarter, data-driven
and targeted decision
making
Savings from PEPI
implementation
improved project
IRR by c. 0.8%
We are committed to
utilizing technology in
order to improve
efficiencies across
various business
dimensions (energy
consumption, process
productivity etc.) and
the product value chain
(procurement,
distribution, etc.)
Asset Performance
Management initiative
(in collaboration with
GE) utilizes a
combination of
hardware and software
to record, manage and
compare vital metrics in
order to diagnose
machine health and
reliability