Descon Oxychem Limited

Market Leader in Pakistan

Established Quality, Supply Reliability & Customer Service

Expanding current 34,000 TPA Manufacturing Facility

DESCONA REMARKABLE JOURNEY

STARTED 40 YEARS AGO

OVER USD 1 BILLION IN

ANNUAL REVENUES

PARTNERS IN

PROGRESS

15,000 EMPLOYEES,

26 NATIONALITIES,

7 COUNTRIES

Incorporated 2004

Status Listed at PSX (2008)

Commercial Production 2009

Major Business Manufacturing & sale of H2O2

Name-plate Capacity 28,000 MT

Actual Production 34,000 MT

Paid-up Capital PKR 1 billion

About Us !

Taimur Dawood Chairman

Farooq Nazir Non-Executive Director

Faisal Dawood Non-Executive Director

Mehreen Dawood Non-Executive Director

Asif Qadir Independent Director

Ali Asrar Hossain Aga Independent Director

Haroon Waheed Independent Director

Imran Qureshi CEO / Executive Director

Board Of Directors

Corporate

Surveillance

Internal Auditors: KPMG

External Auditors: PwC (A.F. Ferguson & Co.)

Credit Rating Agency: PACRA

Credit Rating (Jun-18) Long Term (A)

Short Term (A1)

Quality, Health, Safety

& Environment

QHSE - Certifications

Production

Production Trend (MT)

10278

20140

29792

27890

26394

32506 32098 32234

34697

33293

30836

0

10000

20000

30000

40000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Production Trends Linear (Production Trends)

Industry & Markets

Industry Snapshot

Domestic Demand Approx. 68,000 MT

Competitors SPL & Imports

DOL’s production 34,000 MT

SPL’s production 22,000 MT

Imports 15% - 20%

H2O2 Products & its applications

HP provides high bleaching impact at extremely competitive cost

Used as an oxidant and effluent treatment

To create a sterile environment in aseptic packing units

Textile

Mining

Food & Beverages

Potential Segments

• Cosmetic

• Water Treatment

• Livestock

• Poultry

• Milk

Descon Oxychem Limited

Key Financial Indicators

Financial Performance

20.76 19.98 19.03 21.71

25.83 29.52 30.71

-

10.00

20.00

30.00

40.00

2013 2014 2015 2016 2017 2018 2019

Gross profit margin (%)

28.32

23.58 21.19

24.15 26.97

30.31 30.88

-

10.00

20.00

30.00

40.00

2013 2014 2015 2016 2017 2018 2019

EBITDA margin to sales (%)

Financial Performance

(3.74) (4.09) (8.43)

2.84

10.45

15.43 14.57

(20.00)

(10.00)

-

10.00

20.00

30.00

40.00

2013 2014 2015 2016 2017 2018 2019

Net profit margin (%)

78.00 80.00 83.00

7.00

0.00 0.00

53

22 20 17 93 100 100 47

0%

25%

50%

75%

100%

2013 2014 2015 2016 2017 2018 2019

Debt Equity Ratio

Debt Equity

Financial Performance

8.46 7.25 5.86

12.94

20.10

25.86

36.65

-

10.00

20.00

30.00

40.00

2013 2014 2015 2016 2017 2018 2019

Return on capital employed (%)

(9.18) (12.33)

(31.49)

2.97

11.93 18.15

50.32

(40.00)

(20.00)

-

20.00

40.00

60.00

2013 2014 2015 2016 2017 2018 2019

Return on equity (%) - Net

Financial Performance

(0.50) (0.60)(1.17)

0.44

2.01

3.16

3.87

(2.00)

(1.00)

-

1.00

2.00

3.00

4.00

2013 2014 2015 2016 2017 2018 2019

Earnings / (loss) per share (Rupees) - Basic

(462,275)

(523,018)

(642,587) (607,476)

(402,551)

(344,272)(236,441)

(650,000)

(450,000)

(250,000)

(50,000)

2013 2014 2015 2016 2017 2018 2019

Retained Earnings

Financial Performance

* As on 19-Mar-2019

(10.93) (9.95)

(4.05)

13.67 9.13

6.11 4.15

(12.00)

(4.00)

4.00

12.00

2013 2014 2015 2016 2017 2018 2019

Price Earnings Ratio

5.49 5.98 4.72

6.03

18.35 19.30

16.05

-

5.00

10.00

15.00

20.00

25.00

2013 2014 2015 2016 2017 2018 2019

Share Price

Way Forward

- Rescind of SRO 1125 – Cash positive.

- Application of anti dumping duty on export schemes imports – Price

positive & level playing field.

- HP import valuation rulings – Price positive & level playing field

- Capacity Expansion to maintain market leadership position

- Pursuing initiatives to remain Lowest cost producer (benchmarking, energy

& efficiency projects).

- Manufacturing Excellence (sweating assets)

- Focus on High Margin & specialized products/segments

Positives & Way Forward

Thank You !

Q&A