Century Paper & Board Mills Limited

Corporate Briefing 2019September 26, 2019

Karachi

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

Contents:

Lakson Group Intro.

Company Intro.

Capacities and Market Share

Sustainability at CENTURY

CSR at CENTURY

Historical Financial Performance

Financial Results (FY2019 vs. FY2018)

Future Outlook

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

A Brief Introduction of

LAKSON GROUP OF COMPANIES

Century Paper & Board Mills Limited – Corporate Briefing 2019

Introduction:

Group was founded by Mr. Hasan Ali Karabhai in 1954 as a Trading Concern.

Presently Group Portfolio Consists of:

Soaps & Detergents

Toothpastes & Surface Care Products

Internet Services & Software Development

Cloud Computing & Call Centers

Paper & Paperboard Manufacturing

Printing & Packaging

Publications & Media

Food & Fast Food Restaurant Biz

Agriculture (Drip Irrigation)

Surgical Instruments Biz

Insurance & Investments

Travelling & Tour Operations

Lakson Group of Companies

Century Paper & Board Mills Limited – Corporate Briefing 2019

Lakson Group - Major Associated Companies

Colgate-Palmolive Inc. USA(Joint Venture)

McDonalds Corporation, USA(Franchise)

International New York Times, USA

Ajinomoto-Co, Inc. (Japan)(Joint Venture)

Lakson Group –Foreign alliances

Century Paper & Board Mills Limited(A Lakson Group Company)

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Core Values

1990 :

Started Commercial Production

With PM-1, PM2 & PM-3

Total Capacity

30,000 TPY

1997:

Added PM-4

Multilayer Board Machine.

(36,000 TPY)

Total Capacity :

66,000 TPY

2003:

Added PM-5

Twin layer Board Machine (24,000 TPY)

Total Capacity:

90,000 TPY

2006:

Added PM-6

MF Paper Machine

(20,000 TPY)

Total Capacity :

110,000 TPY

2008:

Added PM-7

Multilayer Coated Board Machine:

(130,000 TPY)

Total Capacity; 240,000 TPY

Milestones:(Capacity Related)

1996Added Power Generation PlantCo-Gen-1 12.3 MW

2002Installed Effluent Treatment Plant (DAF)

2005Converted Power Generation to dual Fuel (Gas / Oil

2008Added Co.Gen-2 20 MW

2016Installed Co.Gen3 (Coal Based) 18 MW

2003:Added Corrugated Cartons Making Unit

Milestones :(Others Developments)

2019Installed Solar Panels of 1.3 MW

Century Paper & Board Mills Limited – Corporate Briefing 2019

CURRENT INSTALLED CAPACITY (Product Category Wise Break Up – TPY)

Coated Packaging Boards 170,000

71%

BXP30,000

13%

Un-Coated Board20,000

8%

MF Papers17,000

7%

MG Papers3,000

1%240,000

TPY

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century – Market Share - Coated Packaging Boards

Century36%

Others Comparable

Quality13%

Others Low Quality

Segment32%

Imports19%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Market Share – All Paper & Board Products

Century11%

Others56%

Imports33%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Major Customers / Regular End Users:

Sustainability at

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Sustainable in Actions

Installation of Solar Power of 2.00 MW

Use of Effluent Treated Water in Pulp mills and other areas

Water Conservation Projects

Using Agriculture Residuals Based Fiber

Century Paper & Board Mills Limited – Corporate Briefing 2019

Solar Power Panels

Installation of Solar Power Panels in Progress utilizing the large roof area.

Century Paper & Board Mills Limited – Corporate Briefing 2019

Secondary Waste Water Treatment Plant

Secondary Biological water Treatment Plant installed in 2015 at a cost of 2.5 Million US $.

Century Paper & Board Mills Limited – Corporate Briefing 2019

Use of Treated Recycled Water for Plantation

CSRAt

Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Sponsoring Schools within 25Km radius of Plant

Century Paper & Board Mills Limited – Corporate Briefing 2019

Century - Smart Schools

Joint venture with Institute of Rural Management (IRM).

One Room Classroom Schools – Established in Less Privileged Communities Areas.

Focus on such non-school going children involved in child labor by way of garbagecollection etc.

Parents’ Counseling about the importance and necessity of education.

Health Checkups of Students

Century - Smart Schools

COMPUTER TRAININGFor Employees Children

Employees’ Families Festivities at Plant

Historical Financial PerformanceCentury Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Production (M. Tons)

186,000 175,000 163,000 186,000

214,000 229,400 227,600

78%73%

68%

78%

89%96% 95%

0%

20%

40%

60%

80%

100%

-

50,000

100,000

150,000

200,000

250,000

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Prodution (M.Tons) Capacity Utilisation

Century Paper & Board Mills Limited – Corporate Briefing 2019

Sales Volumes (MT) &

Gross Sales (PKR -Millions)

180,723 170,225 157,124

176,481 203,752 214,129

216,771

16,513 17,132

15,391 15,603

18,021

22,191

25,993

-

5,000

10,000

15,000

20,000

25,000

30,000

0

50,000

100,000

150,000

200,000

250,000

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Sales Volume (M.Ton) Gross Sales (Rs' MLN)

Century Paper & Board Mills Limited – Corporate Briefing 2019

EBITDA (PKR -Millions)&

ROCE (%)

3,007

2,441

1,307

1,669

2,223

2,880 2,985

18%

13%

2%

6%

11%

15%14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

EBITDA (Rs.' MLN) ROCE (%)

Financial Results (FY2019 vs FY2018)Century Paper & Board Mills Limited

Century Paper & Board Mills Limited – Corporate Briefing 2019

Turnover & COGS (PKR - MLN)

18,96516,459

22,24119,578

0

5,000

10,000

15,000

20,000

25,000

Turn Over COGS

2018 2019

17%

19%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Gross Profit and Operating Profit (PKR -MLN)

2,506

1,891

2,663

2,001

0

500

1,000

1,500

2,000

2,500

3,000

Gross Profit Opertating Profit

2018 2019

6%

6%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Finance Cost and Net Profit (Rs.’ MLN)

460

992

762 884

-

200

400

600

800

1,000

1,200

Finance Cost Net Profit

2018 2019

66%

12%

Century Paper & Board Mills Limited – Corporate Briefing 2019

Earnings and Dividend (Rs./Share)

6.25

2.25

5.80

1.00 -

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Earning Per share Dividend Per Share

2018 2019

Century Paper & Board Mills Limited – Corporate Briefing 2019

Distribution to Shareholders (Rs.’MLN)

Particulars 2019 2018

Ordinary Dividend

Interim - 220,528

Final 147,018 110,264

Total Ordinary Dividend 147,018 330,793

Preference Dividend 31,584 75,990

Total 178,602 406,783

Dividend Payout 20% 41%

Future Outlook

Century Paper & Board Mills Limited – Corporate Briefing 2019

Future Outlook

Prevailing Fiscal & Monetary measures have slowed down the economic growth.

Near term Outlook is Challenging.

Market Size may stay Stagnant or Shrunk.

Energy cost to stay high – No system Gas is available till now.

Market has liquidity crunch for various reasons

Company has preparedness to face these challenges:

Established reputation as reliable supplier of quality products.

Its products are considered Perfect Imports Substitution

Various Initiatives to reduce costs with efficiencies are in place.

Company is exploring export business and initial feed back is encouraging

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

Q & A

Session

Century Paper & Board Mills Limited – Corporate Briefing 2019

Corporate Briefing -2019

THANKS