1

February 20, 2019Corporate Briefing

August 28, 2019

Karachi

YBG: Unleashing the True Potential of ICI Pakistan Limited

❑ ICI has over 70 years of presence in Pakistan andpredates to the formation of the Country. This year, ICIPakistan Limited is celebrating 75th year of its existence.

❑ Formerly part of British industrial giant ICI PLC UK whichwas acquired by Akzo Nobel N.V in 2008, a Fortune 500Company.

❑ In 2012, YBG made a major breakthrough of acquiring amajority shareholding in ICI Pakistan limited and sincethen, has continued to build the company’s legacy.

❑ One of the best performing companies in Pakistan withtrue potential to further leverage its corporate brandequity, through organic and inorganic growth.

❑ The market capitalization of ICI crossed US $1bn on2017. The market value per share as at 30th June, 2019,was Rs 532.

ICI’s presence in Pakistan

The History of ICI Pakistan Ltd.

Yunus Brothers Group

Business Overview

Textiles

• Largest Textile company in Pakistan

• Comprises of fully integrated units

• Cumulative turnover of US$ 679m

Cement

• Lucky Cement: 2nd

largest producer in Pakistan with 9.35m tons of capacity

• Investment in a 2.6m tons brownfield project in KPK

• Turnover of US$ 432m• Market share of 17%

ICI Pakistan

• Acquired in 2012• Comprises of 4 main

businesses : Soda Ash, Polyester, Life Sciences, and Chemicals

• Morinaga Infant Formula Marketing and Distribution through JV Company NutriCoPakistan.

• Turnover of US$ 371m

❖ Founded in 1962, YBG is a prominent industrial conglomerate in Pakistan with aggressive domestic and international investments

❖ More than USD 3.0bn worth of assets

❖ YBG has a strong financial and performance track record

❖ Committed to social and community welfare projects

❖ Employs a workforce of more than 28,000 people

Industries YBG Serves

• Textiles• Construction• Chemicals• Energy• Real Estate• Power• Consumer Goods• Commodities

New Projects

• Real Estate Development – US$ 200m

• 660 MW coal power plant - US$ 885m.

• JV with KIA Motors for automobile assembly plant – US$ 150m

• 100 MW solar power plant

Overseas Projects

• Cement plant in DRC –US$ 256m

• Grinding Unit in Basra –US$ 55m

• Greenfield 1.2mt Clinker plant at Samawah, Iraq –US$ 105m

• Distribution in USA• Textiles in Europe

YBG – Robust Financial Performance from 2012 to 2018

141 163

182 203 203

235 253

227 269

310 335 346

396 417

-

100

200

300

400

500

2012 2013 2014 2015 2016 2017 2018

Net Profit & EBITDA

Net Profits EBITDA

(USD Million)

1,149

1,732

1,8592,078

2,3792,822

3,046

905

1,368

2,4352,833

3,494

4,341

2,980

-

1,000

2,000

3,000

4,000

5,000

2012 2013 2014 2015 2016 2017 2018

Total Assets & Market Capitalization

Total Assets Market Capitalization

(USD Million)

Commitment to HSE&S: Cornerstone to our Operations

+24million man hours without

injury(+19 million by Soda Ash

Business)

ICI - Integrated part of Economic Fabric

• Diversified

business & product

portfolio catering

the needs of every

industry in the

country

• Strong reputation

for excellent

quality & customer

service

Soda Ash

Polyester

Life Sciences

Chemicals

Infant Nutrition

8

Soda AshPolyester

Our Businesses

The iconic Soda Ash Business ICI Pakistan Limited remains

synonymous with quality and longevity since 1944

Production capacity

of 425,000 tons per

annum and operating

at almost 100%

capacity utilization

with another 75,000

tons per annum to

be added by 2021

Diverse applications

including silicate, glass,

detergent, paper, textiles,

chemicals, and food grade

sodium bicarbonate

Close proximity to

customer protects from

import risk - located in

Punjab (70% of domestic

consumption)

Export competitiveness

due to our proximity to

North Indian marketCaptive Power and Steam Projects since acquisition by YBG

✓ Coal Fired Boilers 1&2 ~PKR 2.5bn

✓ Coal Fired Boilers 3&4 18 MW ~PKR 3.6bn

Ideal location in terms

of access to major raw

materials – both salt and

limestone

Long history of

Technical excellence

and reliability

Capacity expansion projects since acquisition

by YBG

✓ 14 KTPA Refined Sodium Bicarbonate ~PKR 0.5bn

✓ 75 KTPA Light Ash ~PKR 5.3bn

✓ 84 KTPA Dense Ash ~PKR 0.5bn

Diverse Usage Across Multiple End-Use Segments

The Soda Ash Industry is expected to continue its strong growth as

Downstream industries grow

Soda Ash Business Performance

(PKR Bn)

4.1

9.0 10.1 10.8 11.0

12.5

16.54

6 MONTHS 2013

FY2013-14

FY2014-15

FY2015-16

FY2016-17

FY2017-18

2018-19

Revenue

1.0

2.6 3.2

3.9 4.1 4.2

5.32

6 MONTHS 2013 FY2013-14

FY2014-15

FY2015-16

FY2016-17

FY2017-18

2018-19

EBITDA

(PKR Bn)

Polyester Business

Pioneer In Polyester Manufacturing In

Pakistan

Second Largest Domestic Player

Strong Safety & Environment Record

Production capacity 135,400 tons per

annum and operating at full

capacity utilization

Captive Power Generation

Strong Technology Partner

(Invista – a global leader in the sector)

Excellent Reputation For Customer Relationships,

Product Quality And Technical Services

Strong Management Capability With Self Sufficiency In Plant

Know-how

ICI Pakistan Limited introduced Polyester Fibre to the country in 1982 enabling the cotton rich textile

industry to diversify its products and be more competitive in the international arena

Note: Polyester includes PowerGen profit as well

Polyester Business Results

0.2

(0.1)

0.4

0.1

0.5

0.96 0.98

6 MONTHS 2013

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

EBITDA

(PKR Bn)

(PKR Bn)

9.5

18.8

15.913.4 14.4

18.2

23.6

6 MONTHS 2013

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

Revenue

Life Sciences Business

Pharmaceuticals Animal Health

PharmaceuticalsT R A N S F O R M I N GT O I M P R O V E L I V E S

Manufacturing Footprint

HATTAR PLANT

NUTRA PLANT

HAWKESBAY PLANT

3 Manufacturing Sites1 Nutraceuticals Unit

2 Pharmaceuticals Units

69,000,000Units Annually

Producing

HB Nutra Hattar TotalProducts 9 11 52 72Number Of SKU's 35 21 153 209

Certifications:

Hattar Plant

GMP Certifiedissued by DRAPExpiry: 06/05/2021

ISO Certified 9001:2015One year validity

HB Plant

GMP Certifiedissued by DRAPExpiry: 26/02/2020

ISO Certified 9001:2015One year validity

Nutra plant

ISO Certified 9001:2015One year validity

HATTAR PLANT

Powder for Injection:• Cephalosporins• Carbapenems• Penicillins• Steroids

Liquid Injectables:Both Aseptic and terminally sterile products

NUTRA PLANT

Orals:• General Tablets• General Capsules• Oral Cephalosporin

(Capsules and Dry Syps)

• Oral Penicillins( Capsules/ Dry Syrups/ Tablets)

• Sachet Area.• Psychotropic Products(Tablets)

HAWKESBAY PLANT

Solids (Tablet) | Liquid

We have the capability to manufacture multiple dosage forms at our facilities

Tablet Sachet Syrup Soft Gel

450 Registrations24 Enlistments

2 DMLs & 1 Enlist

Our regulatory function is equipped to meet the registration and

licensing needs of the Pharmaceuticals business

Validity of DML is 5 Years for Pharma Plants

ICI Validity Status:• Hattar Plant: DML Valid till Sep 2020 • Hawkesbay Plant: DML Valid till Mar 2020*Renewal process is initiated 3 months prior

• Nutra Plant Enlist: No validity prescribed in DRAP Regulations.

Hawkesbay and Hattar

Plants

Nutra Plant

Animal Health

Business

ICI PAKISTAN LTD.

Animal Health Business Footprint

1,670,000 Units

15,000 MT Silage

990,000 Bags Vanda Annually

Manufacturing Operations3

1Feed Mill

1Vet-Manufacturing

Unit

Manufacturing Expertise

Vanda De-wormers

543Distributed

Nationwide

1 National Distributor (UDL)

237 Vanda Dealers

305 Medicine Dealers & Poultry Customers

PKR 17mnRevenue per

Rep

15,000 Farmers

6,000 Vet Professionals

500 Breeder, Feed Millers

Every Month

Silage

Sites

2

Silage>235Passionate people!

Animal Health Division -Industry

Presence

Poultry

InstitutionsCommercial

Broiler/ Layer Farmers

Livestock

Small Dairy Holdings

Commercial Dairy Sector

Corporate Dairy Sector

Artificial Insemination

Bovine Genetics

Grow by leveraging our Core Competencies

- Top-of-mind recall

- one-stop solution

provider

Brand Equity

- 15,000 farmers reached monthly

- 6,000 vet. professionals reached monthly

- 500 Breeder, Feed Millers

- Extensive retail outreach through

distributor (2,500+ retail customers

reached per month)

Optimum market access

- Highly trained and technically

proficient salesforce

- Frequently host educational

seminars for veterinary

professionals and industry KOLs

Technical Excellence and

Quality

Our Brand umbrella for Branded Generics

3.5 3.8 4.7

6.6 6.32

2014-15 2015-16 2016-17 2017-18 2018-19

Pharma - NSI

Life Sciences Business Results

(PKR Bn)

0.3 0.6 0.8 0.9 1.1

1.6

0.67

6 MONTHS 2013

FY2013-14

FY2014-15

FY2015-16

FY2016-17

FY2017-18

2018-19

EBITDA - LS(PKR Bn)

*EBITDA excluding Cirin

2.7 3.1

4.3 4.9

3.73

2014-15 2015-16 2016-17 2017-18 2018-19

AH - NSI(PKR Bn)

Polyurethane

Chemicals & Agri Sciences Business

CropsTextile Consumer

Agro Chem

Masterbatch

Seeds

Industrial

Chemicals

Solvents

Textiles

Adhesives

Crop

Trading

Polyurethanes

Sanitary

Woodworking

Coating

Textiles Auxiliaries

Surgical

Fertilizer

Detergents

Paints

Personal Care

Pharma

Food

Beverages

Automobiles

Construction

FootwearAppliances

Agrochemicals

Oil /Petroleum

Textiles PVAs

Textiles Detergents

Dyes & Inks

Presence in major industrial sectors

Chemicals Business

Construction

Sports

Agri Sciences

Agri Sciences

Seeds

& Veg Seeds

Hybrids

Agro Chemicals

Pesticides Micro Nutrients Bio Fertilizer

➢ Established brand and quality products with premium farm services

➢ Representing global seed companies, introducing premium products in Pakistan

➢ Owned seed processing & research facility at Multan

➢ Strong presence in sunflower, cotton, corn and wheat market

Launched all product variants

comprising of:

• Standard Colours

• Specialized Colours

• Additives – Antislip,

Antistatic, UV Stabliser etc.

Brand “Shades” launched with a promise statement

“Bringing substance to life”

Construction of Masterbatches Facility Completed.

Commercial Operations Launched in May 2019

Received positive initial response across all major

application segments

Masterbatches

Chemicals & Agri Sciences Business Results

PKR Bn

2.4

5.2 5.35.8

7.37.8 8.1

6 MONTHS 2013

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

Revenue

0.3

0.6 0.5

0.7

0.8

0.3

0.77

6 MONTHS

2013

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

EBITDA

1,838

1,923

2,227

2,091

Revenue

GC SC PU Agri

(PKR Bn)

NutriCo Pakistan Pvt. Ltd.

➢ NutriCo manages the import, marketing

and distribution of nutrition products of

Morinaga Milk Industry Co., Ltd. in

Pakistan

➢ We have a strong focus on increasing our

market share and exploring growth

opportunities

2018-19

PKR Mn

(FY)

2017-18

PKR Mn

(FY)

Investment 960 960

Share of Profit from

Assoc.

526 586

Morinaga

Manufacturing

Facility ~PKR

4.8 Bn

ICI Pakistan Limited 51%

Holding

Morinaga Japan

Unibrands Private

Limited

Infant Milk Nutrition

Trading Manufacturing

NutriCo Morinaga Project

NutriCo Morinaga is a project of setting up a plant to manufacture infant milk formula

products

Plant capacity is expected to be 12,000 tons per annum.

Currently, shipments of plant and machinery have been

arrived and the plant is installed.

Trial runs of project have been started with the start of FY

2019-20.

Morinaga

Manufacturing Facility

~PKR 4.8 Bn

ICI Pakistan Ltd.

51% Holding

Morinaga Japan

Unibrands Pvt Ltd.

NutriCo Morinaga Pvt. Limited

Financial Results

Top Line Performance

Net Revenue

PKR Bn

2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9

18.84 15.87 13.43 14.39 18.1623.64

8.99 10.13 10.84 11.0412.55

16.545.20 6.27 6.859.05

11.47

11.11

5.20 5.25 5.847.30

7.83

8.11

PEPG SA LS Chem

Key Highlights – For the Year Ended June 30, 2019(Consolidated)

Net Turnover Gross Profit Operating Result

June 30, 2019 Jun 30, 2018 June 30, 2019 Jun 30, 2018 June 30, 2019 Jun 30, 2018

59,382 49,992 9,745 8,987 4,943 4,602

19% 8% 7%

141 182

2,747 3,631

1,434 428

287 705

Operating Result

JVCo

GC

LS

SA

PEPG

Jun 18 Jun 19

964 984

4,217 5,320

1,567 586

336

767

EBITDA

JVCo

GC

LS

SA

PEPG

Jun 18 Jun 19

18,156 23,629

12,547

16,538 11,473

11,111 7,817

8,104

Net Turnover

GC

LS

SA

PEPG

Consolidated - Comparison Vs. Last Year

59,382

49,992

4,602 4,944

7,6547,076

7.7

8.2

19.9

24.6 29.6

35.5

35.5

27.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

FY 2013 (6m) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

EBITDA EPS

64

9

16

1817

9

0

5

10

15

20

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

Dividend Per Share

16

36 40 41

101

74

49

0

20

40

60

80

100

120

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

MV of Equity

Financial Performance

CAGR is calculated till FY 2016-17 for MV of equity.

PKR Bn PKR Bn

EBITDA PKR Bn

EPS PKR

*CAGR is updated for the year ended June 2019 results.

P&L

ICI Share Price

40,346

33,902

790

532

-

100

200

300

400

500

600

700

800

900

1,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

PSX 100 Index Share Price (ICIP)

HR Fact File

>1489Passionate people!

6.57yrs

Average

employee

tenure

6.2%Women in

Workforce

25%Women in

Executive team

81Active

Mentors

7300Candidates

applied

13%Talent

Movement

Index61 Total trainees Company-wide

to fuel leadership pipeline

Revenue per employee

23

13,917Training

Man-days

invested in

learning

Graduate

Recruits Hired

12

14

6

10

USD 210,782

58%

7%

3%

3%

28%Commercial

Finance/IT

HR/CCPA

Others

Technical

11%18%

8%

1%35%

12%15%

Animal Health

Chemicals

Head Office

Morinaga

Pharma

Polyester

Soda Ash

3

16 1

8

7

9 8

1

Animal Health Chemicals Head Office

Pharma Polyester Soda Ash

An Employer of Choice

Hiring the Best

Nurturing &

Development

Learning &

Growth Culture

Strong ownership of Company Values and deep rooted

Company association

Enviable high-performance talent pool with cross

Businesses & Functional exposure

Learning culture built on capability enhancement

opportunities

Cutting edge strategically aligned HR systems, processes

& practices

HR Excellence

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CSR - Our Approach

18 ongoing

projects

> 250kBeneficiaries

every year30 million

annual

funding

“We believe that through direct and indirect social contributions to the

communities that we operate in, we can create real value for people, as

well as demonstrate our respect for them”.

40

Key Projects

Hamqadam Community

Clinic

• 7000+ children monitored for

immunisation and nutrition

• 1700+ awareness sessions for

pregnant women

• 31000+ OPD cases

• 200+ emergency trips by

ambulance

Free monthly eye camps

• 300+ eye camps organized

• 155,000+ OPDs

• 31,000+ refractions

• 18,000+ surgeries

• 216,000+ litres of free, clean water

provided from 22 taps and bowsers

• Donation of 2 gensets with capacity

to pump 100,000+ litres of clean

water even in case of loadshedding

Clean water supply to Khewra Ladies Welfare Centre

• Established 1973

• One-year course in fashion

designing and tailoring

• 1300+ graduates

• Exhibition of handicrafts

41

Employee Engagement – Pehchan Programme

SOS village - Lahore14th August celebration

Urban Forest – KarachiTree plantation

Tree plantation –Sheikhupura NutriCo

400+ volunteers

1150+ hours

Acquisition by YBG

December 2012

ICI

Launch of new corporate identity Aug 2013

NutriCo 1st tranche PKR 360m Jul 2014

NutriCo 2nd tranche PKR 360m Oct 2014

NutirCo 3rd tranche PKR 240m Apr 2016

Morinaga infant formula milk PKR 5.2bn (51%

owned by ICI)

2017-18

PEPG

Coal fired heaters at PE PKR 0.8b June 2014

Steam turbine at PE PKR 2.3b Jun 2015

SA

Coal fired boilers 1&2 at SA PKR 2.5b Dec 2013

CFBs 3&4 at Soda Ash PKR 3.6b

Jun 2016

Light Ash 75 KTPA Phase 2 2018-19 ~PKR 5.9bn

Light Ash 75 KTPA Phase 1 2018-19

~PKR 5.3bn

DA 84 KTPA Expansion PKR 0.5bn

Oct 2015

RSB 14 KTPA expansion PKR 0.5bn

June 2016

LS

Portfolio of brands & Manufacturing facility of

Wyeth PKR 2 Bn

2017-18

Cirin Pharmaceuticals PKR 1.1b

Dec 2016

Manufacturing facility AH PKR 15m

Nov 2015

Nutraceutical

Manufacturing facility PKR 61m

Nov 2015

GCA

Masterbatchmanufacturing facility

~PKR 800m

Seeds Processing Plant PKR 9m Nov 2013

Continued Investments…!

Completed ~PKR 20.5bn

Ongoing ~PKR 5.2bn

Future Plans ~PKR 5.9bn

Foreign Investment – Expression of Interest

• ICI Pakistan Limited has attracted “an expression of interest from a

foreign financial institution to inject up to PKR 7 billion as growth

capital through a convertible debt instrument”.

• The Transaction is subject to completion of satisfactory due diligence,

agreement of definitive contracts and receipts of all relevant regulatory,

board and shareholder and other internal approvals by the investor and

the Company.

• This proposal is an acknowledgement of the staggering strength and

potential of the Company’s people, sponsor shareholders and

businesses, which are backed by a strong focus on corporate

governance, sustainability and core values.

44

ICI Pakistan – Global & Local Recognition

Asia’s Most Influential

Companies 2019

Gallup Great Workplace

Award 2018 & 2019

ICI Pakistan Ltd is the ONLY company from Pakistan to win these Global awards

ICAP-ICMA 2018 awards: Second prize for “Best

Sustainability Report” and third prize in the “Best

Annual Report” category