Honda Atlas Cars (Pakistan)

Limited

Financial Year ended March 31,

2020

Corporate Briefing Session

Date: August 13, 2020

Macro-economic environment

Macro-economic environment

SBP Policy Rate10.75% 11.00%

10.511.4

12.714.6

10.2

6

8

10

12

14

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Inflation rate8.60% 10.20%

148.24

163.24

157 155.8 155.05

166.58

140

145

150

155

160

165

170

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

USD-PKR Parity141.5 166.58

1.3604

1.516

1.4342 1.4176

1.5383

1.20

1.30

1.40

1.50

1.60

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

JPY-PKR Parity1.27 1.54

10.75

12.2513.25

12.5

11

8

9

10

11

12

13

14

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Source: sbp.org.pk, fbr.gov.pk, Economic survey 2019-20

2.8(July-March FY

2020)

10.3(July-March FY

2019)

Current account deficit US$-B

1.1%(July-March FY

2020)

3.7%(July-March FY

2019)

Current account deficit- % of GDP

17.7% devaluation

21.3% devaluation

5% on 1,001 CC to 1799 CC

(From July-2019)

10% on 1700CC and above

Federal Excise Duty

7% on imports(From July-2019)

2% on imports

Additional Customs Duty

Automobile industry

103,934 113,076

132,906

146,716

152,771

160,491

177,712

195,239207,842

205,648 179,019

129,141

-

30,000

60,000

90,000

120,000

150,000

180,000

210,000

Feb

-14

Mar

-14

Ap

r-1

4M

ay-1

4Ju

n-1

4Ju

l-1

4A

ug-

14

Sep

-14

Oct

-14

No

v-1

4D

ec-

14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5M

ay-1

5Ju

n-1

5Ju

l-1

5A

ug-

15

Sep

-15

Oct

-15

No

v-1

5D

ec-

15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6M

ay-1

6Ju

n-1

6Ju

l-1

6A

ug-

16

Sep

-16

Oct

-16

No

v-1

6D

ec-

16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7M

ay-1

7Ju

n-1

7Ju

l-1

7A

ug-

17

Sep

-17

Oct

-17

No

v-1

7D

ec-

17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8M

ay-1

8Ju

n-1

8Ju

l-1

8A

ug-

18

Sep

-18

Oct

-18

No

v-1

8D

ec-

18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9M

ay-1

9Ju

n-1

9Ju

l-1

9A

ug-

19

Sep

-19

Oct

-19

No

v-1

9D

ec-

19

Jan

-20

Feb

-20

Mar

-20

Toyota

Honda

Suzuki

Organized Passenger Car Market 2019-20

22%20% 18% 17% 18% 21%

24%

29%35% 41%

40%

37%34% 30%

49%

45%

41%

43% 45%45%

46%

25%

26%

49%

25%

26%

49% 47%

29%

24%17%

28%

55%52%

29%

19%

Suzuki’s new Alto launched in June-19 captured a fair amount of market share

Cars Units Sold in last 12 months

Data Source: PAMA

Industry sales reduced

by 37% from FY 18-19 to

19-20

Toyota Altis 1.6Llaunched

Suzuki Alto VXR & VXLlaunched

KIA Sportage & Picanto

launched

Prince

Pearl

launched

Company’s Financial Review

PERFORMANCE FOR THE YEAR ENDED MAR 31, 2020

Operating Highlights 2020 2019 % Change

Vehicle Production Units 22,729 48,608 (53%)

Vehicle Sales Units 22,418 48,648 (54%)

Net Revenue Rs in Million 55,046 95,128 (42%)

Gross Profit Rs in Million 4,091 7,304 (44%)

Gross Profit % 7.43% 7.68% (3%)

Profit Before Tax Rs in Million 1,547 5,594 (72%)

Profit Before Tax % 2.81% 5.88% (52%)

Earnings Per Share Rs 4.77 26.97 (81%)

Dividend Payout Ratio % 20.90% 45.1% (54%)

At The End of Period

Total Assets Rs in Million 31,842 32,101 (1%)

Shareholders' Equity Rs in Million 16,557 17,627 (6%)

Share Performance

Price Per Share Rs 133 240 (45%)

Market Capitalization Rs in Million 18,922 34,266 (45%)

Earnings per share and dividend

HACPL has maintained a handsome dividend payout

1.70

7.50

22.10

24.90

43.00 45.50

26.97

4.77

17.60

39.90

22.60

28.10 30.30

59.20

45.10

21.00

2013 2014 2015 2016 2017 2018 2019 2020

Earnings per share (Rs)

Dividend payout ratio (%)

Significant events during the year

MOU Between HACPL And Banks

MOU Bank OfferingsHabib Bank Ltd • Free Registration on All Models

Bank Of Punjab • Free first year Insurance All Models

MCB

• 50 % registration and Maintenance packages 20K on all models

excluding Turbo.

• Extended warranty on Turbo

Bank Al Habib Ltd

• Free registration on city all variants.

• Free Leather on civic, maintenance package 20K, extended

warranty.

• 300 liter fuel on Turbo, Extended warranty

• 300 liter fuel on BRV, Extended warranty, and maintenance

ObjectiveMemorandum of Understanding Signing between HACPL & Various Banks To Boost Sales of Honda Cars with the Help of

Huge Client Base & Wide Area Coverage of Banks

Launch of New Model

Two new models of Civic were launched during FY19-20

Honda Civic Turbo Oriel in January-20

Honda Civic RS Turbo in April-19

Launch of New Model – Minor Model Change

Honda BR-V

BR-V’s facelift

unveiled in

October-19

Karachi9, 1, 2

Hyderabad1

Peshawar1

Sargodha1

Faisalabad3 2

Rawalpindi1 2 1

Mirpur1

Sialkot1

Gujranwala1

Lahore4 5 2

Multan2 1 1

Okara1

Sukkur1

Bahawalpur1 Rahimyar

Khan 1

Gujrat1

Islamabad2 2

Sahiwal1

Dealership Network (August 13, 2020)

Dera Ghazi

Khan 1

Mirpur Khas1

Further Dealerships are being added to strengthen country wide presence

New Dealership in Karachi, Abbottabad and

Multan3S Dealers: 33

2S Dealers: 18

1S Dealers: 6

Total : 57 Dealers in 23

Cities

Jhelum1

Mardan1

Abbottabad1

Q & A

THANK YOU