AZGARD NINE LIMITED Corporate Briefing Session For the Financial Year Ended on June 30, 2019
Briefing Agenda Company Brief Developments 01 02 • Plant Location and Capacities • Updates for the Year 2018-19 • Strength, Weaknesses, Opportunities, Threats • Creditors’ Scheme of Arrangement (SWOT) Matrix. Financial results Questions & Answers 03 04 • Six Years at a Glance • Q/A session • Graphical presentation of Financial Results • Future Prospects
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 Bedian Road, Mouza Attari Saroba, Actual Production - Pcs. Tehseel Cant, Lahore 10,479,097 9,812,931 Capacity utilized % 73% 72% Favorable trend. Atta Buksh Road, 18-K.M. Off: Ferozepur Road, Mouza Atari Saroba Tehseel Cantt, LHR
ANL - SWOT ANALYSIS S W Strengths Weaknesses • Liquidity issues due to pending • Increasing demand as seen through DLTL/Sales tax refunds. growth in Sales by 26% in 2018-19. • Competitiveness issues due to tough • Maintaining competitiveness through Competition within region. cost reduction. • Higher Financing rates. • Internationally recognized certifications on quality, environment and labour welfare. SWOT Matrix As on June 30, 2019 Opportunities Threats • Financial Restructuring Approval from • Deteriorating Local Economy. LHC will positively change the • Slowdown in world’s economic growth Balance Sheet. • USA/China Trade Wars. • Growth opportunities due to rupee • Unstable Turkish Market. Devaluation by 30%. • Increase in Interest rates (7.92% to 13.397%) • Reduction of DLTL by almost 50%. • High Gas rates in Punjab, prices O T linked to dollar.
Updates for the Year 2018-19 Material Information: October 08, 2018 Rented Facility from M/S: Irfan Textiles (Pvt.) Ltd As communicated to Pakistan stock became operational. Exchange (PSX) during the year 2018- 19. January 31, 2019 Honorable Lahore High Court verbally Approved Creditors’ Led Scheme of Arrangement in Court July 30, 2019 EOGM - Sale/Disposal of a spinning unit located at Muzaffargarh, a stitching unit at FPR July 31, 2019 Honorable Lahore High Court verbally Approved Creditors’ Led Scheme of Arrangement in Court.
Updates for the Year 2018-19 Material Information: August 09, 2019 Certified copy of Honorable Lahore High Court’s As communicated to Pakistan stock Judgement about creditor’s scheme of arrangement Exchange (PSX) during the year 2018- delivered to PSX. 19. October 16, 2019 Certified copy of creditor’s scheme of arrangement delivered to PSX. October 28, 2019 Financial results of First Quarter of 2019-20: Sales Growth 18.9% , PAT 130.8M (-9.7M: 2019-20 1Q) Nov. 19, 2019 Corporate Briefing Session.
Six Years at a glance – Rs. Million Sales/ Operating Profit/(Loss)/Profit After Tax Sales - net Rs. in Million 25,000 25,000 20,215 20,215 20,000 20,000 15,982 15,982 15,000 13,302 13,176 12,802 15,000 13,302 13,176 12,802 10,702 10,000 10,702 10,000 5,000 2,064 1,423 932 600 305 197 5,000 115 - 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 (31) (134) (2,126) (814) (2,934) (5,000) - 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Sales - net Operating profit / (loss) Profit / (loss) after tax
Sales Versus Assets Rs. Million Net Sales Vs. Total Assets Net Sales Vs. Property, Plant & Equipment 25,000 22,686 25,000 20,215 19,867 20,000 18,690 20,215 18,271 20,000 15,982 15,982 15,000 13,176 12,802 15,000 13,176 13,215 13,358 12,802 13,194 10,000 13,169 10,000 5,000 5,000 - - 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 Sales - net Total Assets Sales - net Property Plant & Equipment
Financial Position – Rs. Million Equity Vs. Current Liabilities Vs. Equity Vs. Long-Term Debt Non-Current Liabilities 9,000 25,000 8,000 7,000 20,000 6,000 5,000 15,000 4,000 8,065 7,818 7,688 7,702 21,272 10,000 18,707 3,000 17,620 16,630 2,000 5,000 429 1,000 228 353 1,064 1,064 1,288 842 732 351 353 228 429 - - 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 Current Liabilities Non-Current Liabilities Equity incl. surplus 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.
ANL – Corporate Briefing Session Thank You Questions & Answers
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