engro corp

engrobilityis the ability toface the futurewith confidenceand tenacity.

a one word platform that describes the essence of what we do. the essence of a unique ability that touches lives everywhere. across all our companies, engro deploys the ability to improve lives, empower livelihoods and inspire meaningful change. moreover, taken together with our values, we believe ourselves to be a reliable, trustworthy patriot who is a force for good with the ability to enable excellence.

We create positive impact not just in the lives of our stakeholders, but across the entire economy.

Integrated in the agricultural sectorand reaching out to over 1.5mn farmers, we provide USD 500m of farm inputs and procure USD 300m of farm produce, converting it toconsumer food products whichprovide convenience, hygiene andnutrition to 5.5m consumers - making us the leader in thepackaged dairy market.

Producing low cost electricity from flared gas for 5 million people, developing indigenous power production from Thar coal and LNG facilities we are well placed to help Pakistan overcome the energy crisis.

We strongly believe that our pursuit of an inclusive growth model will yield greater success for all our stakeholders.

fuelling impact

1957PAK STANVAC A 50-50 Esso Mobil joint venture discovered Mari Gas Field

1965Esso Pakistan Fertilizer Co. incorporated

1968Production commenced; EPFCL became the largest foreign investment in private sector(US $43 MN )

1991Exxon divested its Equity, Company renamed EngroChemical Pakistan Limited

1995Engro enters the chemical storage & handling business in a JV with Royal Vopak of Netherlands

1997Engro enterspetrochemical business and becomes sole manufacturer of PVC in Pakistan in a JV with Mitsubishi &Asahi Glass

2006Engro enters foodbusiness and sets upmilk processing plantat Sukkur

2007Engro commences 1.3mt Enven expansion project. Largest industrial investmentof $1.1 Bn

2003Engro Eximp formally launched as a trading entity; becomes thelargest importer ofPhosphatic, Potash& Zinc based fertilizersin Pakistan

Engro enters automation/controlbusiness, acquiresmajority stake inAvanceon

2005Engro enters energybusiness and begins work on a 220 MW power plant based on flared gas

2009Engro enters into thelargest public-privatepartnership in the history of Pakistan by setting up Sindh Engro Coal Mining Company with the SindhGovernment

Back integration of Engro Polymers completed

2010Engro Chemical Pakistan Limited demerges into a diversifiedconglomerate with Engro Corporation Limited as the holding company

2011Engro acquires Al Safa Halal in Canada

Engro Eximp FZE, a trading hub issetup in Dubai

Engro divest its equity shares in the automation / control business - Avanceon

2013Entered in to a power project in Nigeria

Engro Fertilizers conducted a successful IPO – oversubscribed by three times

2012Elengy TerminalPakistan Ltd.Incorporated

2014Signed the LSA for LNG project

Commenced ground work on Thar Coal Project – Block II

Engro Rupiya Launch is planned for June 1st, 2014.

a journey of success

journey of success towards a growth path

155,360Consolidated Revenue 2013 (Rs. in Mn)

Consolidated ProfitAfter Tax (Rs. in Mn)

8,183

0

30000

60000

90000

120000

150000

180000

1,2771990

Revenue

12,797

2004

34,121

2007

79,976

2010

114,624

2011

125,151

2012

155,360

20130

50000

100000

150000

200000

250000

6,724

1990

Total Assets

13,185

2004

49,236

2007

164,778

2010

184,077

2011

189,624

206,907

2012 2013

80,932

20130

2000

4000

6000

8000

10000

134

1990

Profit After Tax

1,611

2004

2,877

2007

6,790

2010

8,0608,183

2011

1,333

2012 20130

10000

20000

30000

40000

50000

60000

70000

80000

90000

2,803

1990

Market Capitalization

19,775

2004

54,604

2007

63,519

2010

36,457

2011

47,057

2012

fertilizersAs one of the 50 largest fertilizer manufacturers of the world we have close to 5 decades of operations as a world class business contributing over 5million tons of urea to the local agricultural economy in the last 5 years.

trading & processingGlobal sourcing and largest importer into Pakistan of phosphatic fertilizers, also owning the largest state-of-the-art rice processing mill in the country. Involved in trading and processing of agriproducts, micro-nutrients, rice and energy commodities.

who we are

foodsMarket leader in UHTPakistan's no. 2 Ice Cream brand in lessthan 2 years since inception. Acquired Al Safa Halal with offices in America & Canada.

energySet up the first power plant that operates on permeate gas previously being flared. Ventured into coal-based energy production whilst also commencing work on setting up an LNG terminal.

chemical storage& handlingThe only state of the art integrated bulk liquidchemical & LPG Terminal in Pakistan handling2/3 of all liquid chemicals imported into Pakistan.

petrochemicalsThe only fully integrated chlor-vinyl chemical complex in Pakistan also producing poly-vinyl chloride, caustic soda, sodium hypochlorite and other chlorine by-products.

3,500+

our businesses at a glanceOver the course of our investments we have strived to provide end to end solutions to our consumers. It is with this philosophy of inclusive growth that our investments encompass the agricultural value chain all the way from farm inputs to the consumption table.

As a leading conglomerate of Pakistan we continue to make strategic investments that align with the country’s needs and spur economic growth for thousands nationwide.

Engro Fertilizers is a premier fertilizer manufacturing and marketing company having a portfolio of fertilizer products with significant focus on balanced crop nutrition and increased yield.

The business offers a wide range of fertilizer brands besides urea, which include some of the most trusted brand names by Pakistani farmers. These include Engro Zarkhez and Zingro amongst others.

Setup EnVen - world's largest single train ammonia-urea plant with 1.3Mn tons of annual urea production capacity completed in 2011 increasing total annual production capacity to 2.3Mn tons which is 33% of domestic ureaproduction capacity. EnVen is the most energy efficient urea plant in the Country.

engro fertilizers limited

50,129Revenue in 2013 (Rs. in million)

92%owned by Engro Corp.

Engro Eximp (Private) Limited is the group’s commodity trading business that deals in the import and export of phosphate-based fertilizers, agriproducts and energy commodities.

The business imports and markets phosphatic fertilizers in Pakistan as the largest importer with a market share of 60% while also importing potash and zinc based fertilizers.

The business also imports and trades in agricultural commodities such as palm oil, sugar and wheat alongside energy commodities including coal and LPG.

The business has the largest on-ground team working with the rice farmers procuring large volumes of Basmati paddy in the country. it also exports the largest volume of Basmati rice from Pakistan to countries in the ME and the European Union marketed under the brand name of 'Rymah'.

State-of-the-art paddy processing plant set up in 2010 inPakistan’s core basmati belt with processing capacity of120 kT of paddy making it the largest rice processing and finishing mill in the country.

engro eximp (private) limited

100%owned by Engro Corp.

32,853Revenue in 2013(Rs. in million)

engro foods limitedEngro Foods Limited is engaged in the manufacturing, processing and marketing of dairy products, ice cream and fruit juices. The business owns 2 milk processing plants in Sukkur & Sahiwal and operates a dairy farm in Nara with current milk processing capacity of 1.4 million lpd.

The business also has presence in halal foods in North America and operates Al-Safa Halal - a meat processing company.

Since its inception in 2006 the business has pursued aggressive growth in revenue i.e. Rs. 37.9 Bn in 2013 Vs. Rs. 1.5 Bn in 2006.

Engro Foods is the market leader in ambient UHT category and 2nd in the ice cream category. In a short span of 6 years the business has registered a compound annual growth rate of 73%.

Fastest growing customer of Tetra Pak International - 10th largest in terms of number of packs while “Tarang” is the 7th largest brand in terms of number of packs.

37,929 Revenue in 2013 (Rs. in million)

87%owned by Engro Corp.

winning with our brands

engro powergen limitedEngro Powergen Qadirpur limited owns and operates a 220 MW power plant and is the group's first initiative in the energy sector of Pakistan.

The Qadirpur plant is one of the few plants operating on permeate (waste) gas which was previously being flared and is, therefore, qualified to earn carbon credits.

The business adheres to NEQS & World Bank Guidelines (WBG) with zero deviation while also reducing the carbon footprint by approximately 467,000 tons (of CO2) per anum.

As one of the ‘green’ power plants of the country, the Qadirpur plant has saved the government close toRs. 19billion in generation costs since its inception.

8,665Revenue in 2013 (Rs. in million)

94%owned by Engro

Engro Polymer & Chemicals Limited established in 1997 is the only fully integrated chlor-vinyl chemical complex in Pakistan. It is involved in the manufacturing, marketing and distribution of PVC and chlor-vinyl allied products.

Set up a state of the art plant in 1997 as a 50:50 joint venturewith Mitsubishi and Asahi Glass to manufacture PVC fromVCM (Asahi divested it shareholding in 2006).

Company has the capacity to produce 156KT of PVC and 106KT of caustic soda per year through its state-of-the-art chlor-alkali unit, as well as small quantities of other chemicals like sodium hypochlorite and hydrogen gas.

engro polymer & chemicals limited

24,781 Revenue in 2013 (Rs. in million)

56%owned by Engro Corp.

Engro Vopak is a joint venture with Royal Vopak of the Netherlands - the world's largest bulk liquid chemical handling company.

The business is engaged in handling, storage and regasification of liquid & gaseous chemicals, Liquefied Petroleum Gas (LPG), petrochemicals and bio-fuels.

The business is Pakistan's first cryogenic facility that handles 70% of all liquid chemical imports into Pakistan.

EVTL has facilitated over USD 1.3 Bn investment to date in the country.

30 years of exclusivity to handle and store liquid and gaseous-liquid chamicals at Port Qasim.

2,052Revenue in 2013 (Rs. in million)

50%owned by Engro Corp.

engro vopak terminal limited

Setup as a joint venture between Engro Powergen and Government of Sindh, SECMC has been established to mine coal from Thar Block II and setup a mine mouth power plant.

Engro has been assigned a 90 km2 mining lease in Thar Block II amounting to 1.57billion exploitable lignite reserves that can be used to generate 5,000MW of electricity for 50 years saving USD 1.2billion of foreign exchange annually.

A technical, environmental, social and economic feasibility has been completed and the project cost has been negotiated to a level where power cost is competitive vs. imported coal.

The GoP has approved upto USD 700mn guarantee for the debt portion of the project; Project scope is under discussion with the GoP.

sindh engro coal mining company

elengy terminal pakistan limitedElengy Terminal Pakistan Limited has been created to establish and operate a terminal for the handling, regasification, storage and processing of Liquefied Natural Gas (LNG) and Regasified Liquefied Natural Gas (RLNG).

ETPL had bid for the fast track LNG contract to handle up to three million tons per annum (MTPA) of LNG or 400 MMSCFD of re-gasified liquefied natural gas (RLNG) for the next 15 years. ETPL was the only technically compliant bidder for the project.

LNG Service Agreement (LSA) was signed between Engro Elengy Terminal Private Limited (EETPL) and Sui Southern Gas Company (SSGC) on April 30 2014. This agreement is in line with the Federal Cabinet’s approval for the LNG import infrastructure project.

The infrastructure of the terminal has to be constructed in 335 days and once completed, the project will process imported LNG and inject 400mmcfd gas to the national network, which will reduce the existing shortage of 1.6 billion cubic feet by one-fourth.

Key partners for the project include Excelerate Energy (USA), CHEC (China), Technica Ltd (UK) and Lloyd’s Register.

inspiring impactEngro’s business modelhas been shaped to create impact on the economic and social landscape of the country and beyond.

Consequently, across our investments we have strived to embed an inherent focus on creating inclusive growth and value for all the stakeholders and communities we interact with.

USD

2 billionTotal Investments (2007-2013)

Total investments in Pakistan between 2007 and 2012 through our businesses amount to a USD 2 billion.

Our fertilizer business has helped in saving foreign exchange to the tune of USD 2 billion plus through import substituition in the past 5 years.

Our foods business has distributed wealth of over Rs. 40 billion to the dairy farming community to date since its inception.

Through our dairy interventions our farmers have benefitted from improved milk yields of upto 20% leading to Rs. 8 million additional income every year for 9,000 families.

Our ‘green’ power plant at Qadirpur continues to light up lives of over 700,000 households nationwide, saving the government close to Rs. 19 billion in generation costs.

Our interventions in Thar & LNG will yield considerable savings to the tune of USD 50 billion alleviating the energy deficit of the country.

Our rice processing business registered approximately 40% increase in net income of farmers from USD 4,700 per annum in 2009 to USD 7,700 per annum since 2012.

our impact across the value chain

15%reduction in thedebt of farmers.

0.25%Engro’s contribution tonational GDP.

mn people consumeour foods productseach day.

5.5production of electricityfor 50 years from our thar coal project

mega watts5,000 1.5

mn farmers benifiting from our fertilizerproducts

Approx.

saved in foreign exchangeby producing 1,570 ktof urea in 2013 alone

543mn

USD

We believe in investing in tomorrow, by inspiring a lasting change today in the communities where our efforts continue to touch and improve lives for now and generations to come

sustaining impact

158.9 millionRs.

Total Social Spend in 2013

sustainability highlights

engro foundation is a social investment arm of engro committed to making positive impact on the lives of communities that host us. we believe in creating shared value by focusing on ‘strategic community investments’ and deploying ‘inclusive business models’ that benefit the society as a whole.

Established a network of 11 katcha schools. 13 CAER schools and collaborated with CARE Foundation, The Citizens’ Foundation and Sindh Education Department for sponsorship and adoption of schools in multiple areas throughout Pakistan reaching out to over 5,000 students .

Established vocational training programs to train local youth in Daharki to learn a variety of skills to enhance their earning capacity. Also setup a Technical Training College in partnership with stakeholders, providing opportunities to students to pursue a 3-year diploma in chemical and mechanical engineering.

With an increased focus on livelihoods and community outreach programs such as WomenEmpowerment Through Livestock Development (WELD) we have benefitted over 19,200 +women through livestock management training.

Through our various interventions in health such as mobile clinics, Sahara clinic and snakebite centres we have touched and improved lives of over 29,000 patients in past five years.

Our focus on enhancing community infrastructure continues to improve quality of life for households across our host communities; benefitting over 6,000 individuals in the past five years.

200,000snakebite centre

patients treated from 1997 to 2013

45,000benefitting

people through various healthcare projects

19,200+females under WELD

trained

5,000+students in the past 5 years

benefitting

sustainability highlightsOur energy business pursued a pilot on-grid solar power project for the residential colony at Daharki via 1200 solar panels, Pakistan’s largest completed solar power project to date.

Our petrochemical business is working on sustainability initiatives such as generating its own power through a combined cycle power plant, while also boasting a certified green head office facility.

As part of our vision to reduce greenhouse gas (GHG) emissions, our foods business continues to actively promote the use of non-CFC products/equipment at its manufacturing units.

Our fertilizers business shifted production from the base plant to the EnVen plant, significantly reducing gaseous emissions and increasing efficiency – EnVen is the most efficient plant in Pakistan, essentially producing more urea per mmbtu of gas used.

Our manufacturing facilities at Daharki are equipped with a reverse osmosis plant that reduces the flow of unsafe effluents from the plant by up to 150 gallons per minute. Our foods and chemical storage businesses have installed wastewater treatment facilities at their manufacturing facilities in Sukkur, Sahiwal and Karachi ensuring that the water which is discharged from the facilities is safe and does not pollute the environment.

Our Green office initiative has had hge impact on the company’s overall envioromental footprint and has reduced energy, paper and waste.

82%in waste disposal

reduction of

3% 16%in paper consumption

reduction of

in electrical consumption

reduction of

Engro Corporation was awarded the Investor Relations Award by the prestigious CFA Society of Pakistan.

Engro Corporation was awarded the ‘Business Excellence Award’ in the CSR Excellence Awards organized by National Forum for Health & Environment.

Engro Corp’s Annual Report 2012 was declared the overall winner in the Best Corporate Report Awards 2012, first place in the Miscellaneous category and fourth place in the Sustainability category.

Karachi Stock Exchange - Top 25 Companies Award - one of the most frequent winners with 27 awards.

Engro Fertilizers won a DuPont Safety and Sustainability Award in the category of “Stakeholder Engagement for Sustainability”.

The EVTL Terminal achieved 3rd position in the EMEA division in Vopak’s Annual Customer Survey for Net Promoter Score and 2nd position for VSQI.

Engro Polymer & Chemicals Head Office received the “Green Office” certification by WWF.

Engro Corporation & Engro Fertilizers were awarded Silver Award of Achievement by WWF–Pakistan for substantial reduction in carbon footprint during the year 2011 – 2012.

Engro Corp’s Annual Report 2012 also came 2nd in the ACCA Annual Sustainability Awards 2012.

Engro Fertilizers’ Safety Management System at the Daharki plant is the only site worldwide to have achieved a Level – 4 Rating from Dupont.

Engro Foods flagship program EMAN (Electronic Milk Automation Network) was named a 2013 Computerworld Honors Laureate amongst 269 Laureates selected from 29 countries.

Engro Corporation won the World Finance Award’s ‘Best Corporate Governance Award for Pakistan’.

Engro was recognized amongst the top 5 employers in Pakistan by a survey conducted by Rozee.PK in collaboration with YouGov – a UK-based research company.

Engro Head office was awarded the Fire Safety Award by National Forum for Environment & Health.

our awards & recognitions

our future outlook & strategy

The economic centre of gravity is moving back to Asia and is moving at a faster rate than ever before.

Pakistan is amongst the ‘Next 11 Countries’ along with Iran, Bangladesh, Indonesia, Vietnam, South Korea, Philippines, Mexico, Nigeria, Egypt and Turkey.

The N-11 have registered a 5% plus growth over the last few years with increased contribution to the global economy and trade.

Rising economic development in these emerging countries has led to increased urbanization and consumer demand which by 2025 is slated to account for nearly half the global trade i.e. USD30 trillion.

Source: McKinsey Quarterly, August 2012, McKinsey & Company.

Our Future Focus: The Emerging Markets Capitalize on the USD 30 trillion consumer opportunity in emerging markets.

Expand in globally scalable businesses.

Grow in sectors where Engro has world-class capabilities such as agricultural (input & produce), consumer & energy sectors.

Venture into regions where there is growing consumer demand.

111-211-211engro.com

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