DANDOT CEMENT COMPNY LIMITED ANNUAL CORPORATE BRIEFING SESSION For - PowerPoint PPT Presentation

DANDOT CEMENT COMPNY LIMITED ANNUAL CORPORATE BRIEFING SESSION For the year ended June 30, 2019 1

Presentation Outlines Company Briefing 1 Operating Highlights 2 Acquisition 3 Steps After Acquisition 4 Future Outlook/Projects 5 SWOT Analysis 6 Question/Answer Session 7 2

Company Briefing

Company Briefing State Cement Plant Capacity Incorporation Corporation 1,000 TPD (1980) Pakistan (Mitsubishi Japan) (Govt. owned) Commercial Calicom Industries (Pvt) Ltd Three Star Group Production (2019) (2007) (1983) Listing on Stock Gharibwal Cement Exchanges (Privatization) (2000) (1983) Chakwal Group (1992)

Operating Highlights

Profit or Loss 2019 VS 2018 2019 2018 Variance Amounts %age Amounts %age Amounts %age … … … … … … … … Rupees In Million … … … … … … … … Sales 1,594 100.00% 1,307 100.00% 287 21.97% Cost of sales (1,937) -121.57% (1,756) -134.37% (182) 10.35% Gross loss (344) -21.57% (449) -34.37% 105 -23.46% Distribution cost (9) -0.56% (5) -0.39% (4) 74.48% Administrative expenses (59) -3.68% (60) -4.60% 1 -2.39% (68) -4.24% (65) -4.99% (2) 3.64% Operating loss (411) -25.81% (514) -39.36% 103 -20.02% Other income 425 26.68% 2 0.15% 423 20908.99% Other operating expenses (13) -0.79% (31) -2.41% 19 -59.92% 1 0.08% (544) -41.61% 545 -100.23% Finance cost 609 38.19% (185) -14.17% 794 -428.75% Profit/(loss) before taxation 610 38.27% (729) -55.78% 1,339 -183.67% Taxation 15 0.93% 11 0.83% 4 35.53% Profit/(loss) after taxation 625 39.19% (718) -54.95% 1,342 -186.99%

Net Sales 2,500 2,347 2,139 2,000 1,806 1,594 Rs. In millions 1,500 1,307 1,000 500 0 2019 2018 2017 2016 2015 YEARS

Acquisition

Acquisition In May 2019 the company have been acquired by Calicom Industries (Pvt.) Limited (CIPL) under the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017 and a new board of directors were appointed. Up to the signing of these financial statements, CIPL (holding company) has 67,312,925 voting shares (71% of paid up capital) of the company.

Steps After Acquisition

Steps After Acquisition • Working capital injection of Rs.492 million • Rescheduling liability of Bank of Punjab • Rescheduling liability of Bank Islami Pakistan Limited • Restructuring of Ex-management liabilities • Annual maintenance • Change of registered office • Workers right sizing

Future Outlook/Projects

Future Outlook/Projects The new management would like to address all critical issues head- on and tackle them permanently to lay a solid foundation for future of this Company. There are two most critical issues; one is the non-compliance of the current plant to the environmental standards and the other is the in-efficiencies in energy consumption . The resolution of these factors requires a comprehensive Balancing, Modernization and Replacement (BMR) project. Amid a turbulent market and pessimistic short-term economic conditions, this is a good opportunity to go through this BMR project, thereby correct our gaps to make the company competitive in all respects. Your company is finalizing the BMR project design and details and will proceed towards securing funding for this imminent project.

SWOT Analysis

Strengths Weaknesses Quality Raw Material Union Agreements Ideal Plant Location Electricity Cost Lease License Inefficient Production Land Availability Low Production level SWOT Analysis Threats Opportunities High Taxation Rising Demand Interest rate and inflation Border Distance to India New capacities in pipeline Power Plant Installation

Q&A

Thank You