GROUP PROFILE

Siddiqsons Group traces its roots back to 1959 through establishment of Siddiqsons Limited, a textile unit which has grown to
become a Denim Dynasty in Pakistan. Since then the Group has expanded into Tinplate, Energy and Construction & Real Estate

Siddiqsons Tin Plate Limited is the Triple Tree Associates was

Siddiqsons Limited, was
first and only Tin Plate Industry in Siddiqsons Energy: the Power incorporated by Siddiqsons, which
established in 1959. It has
Pakistan. Established in 1999, in Sector Development division of further diversified its holdings into
established to become a Denim
collaboration with SOLLAC of Siddiqsons Group with the Real Estate. Since then the
Dynasty and is recognized
France and MITSUBISHI mandate to establish Coal and company established itself as a
by WGSN as Asia's top denim
CORPORATION of Japan. It Renewable Energy IPPs. It is formidable competitor in the
manufacturers. The company has
operates a 120,000 tons per developing a 330 MW sub-critical market with several real estate
a fully integrated vertical setup
annum Electro Tin Plating (ETP) Thar coal power plant at Thar and construction projects under its
which includes Spinning Division,
plant catering to clients within the Block-II, along with 200 MW of belt including Ocean Mall and
Knit Denim Division, Garment
Consumer Goods and Business-to- Solar and 35 MW of Hydro projects Tower, the tallest building of
Division and Denim Division
Business segments Pakistan in 2014
COMPANY OVERVIEW

 Siddiqsons Tin Plate Limited is the first and only Tin Plate producer in Pakistan.
 The
Company was established in 1996, in collaboration with SOLLAC of France and Mitsubishi
Corporation
 Arcelor
Mittal Packaging (formerly SOLLAC), a world renowned steel and mining company is a
9% shareholder of STPL.
 The factory is located at special industrial zone, Windhar, Baluchistan
 Theproject has a capacity to produce 120,000 tons per annum of Tin Plate, which is primarily
used for making cans and containers for packaging of cooking oil, fruits, foods, vegetables,
sea foods, beverages, paints, lubricant oil and other edible products
 Key
customers of the Company Include Dalda Foods, Pakistan Oil Mills, Punjab Oil Mills, Latif
Ghee Mills, IFFCO, Shujaabad Agro, Zamin Containers, Meezan Oil, Associated Industries,
Rehan Can
COMPANY OVERVIEW

KEY PRODUCTS MAJOR CLIENTS

CORPORATE INFORMATION

Board of Directors Pattern of Shareholding Entity Rating

- Mr. Tariq Rafi Chairman
- Mr. Tariq Rafi 19.72% Entity Rating:
- Mr. Munir Qureshi CEO Long-Term: A-
- M/s. Siddiqsons Limited 15.28% Short-Term: A2
- Mr. Ibrahim Shamsi Non-Exe. director Outlook Stable
- M/s. Arcelor Mittal, France 9.29%

- Ms. Alia Sajjad Non-Exe. director

- Other directors, sponsors, CEO
- Mr. Ashraf Mehmood Wathra Ind. director
& their Spouse and management
- Mr. Abdul Wahab Ind. director
- General public and other
- Mr. Naeem ul Hasnian Mirza Exec. director
Institutional holders
The ratings reflect Siddiqsons Tin Plate’s
established foothold in the tin plate
industry as the first and sole local
22.33%
manufacturer of tin plate in Pakistan.
Siddiqsons has a market share of ~31% in
the local market. The demand for the
Company’s products has shown growth
33.38% in the recent past due to increased
hygiene consciousness of the public at
large and higher use of processed food.
KEY HIGHLIGHTS

 Successful subscription of right issue of PKR 1.8 billion for CRM project;
 CRM project work initiated and expenses to the tune of PKR 1,600 million has
been incurred till date;
 PKR devaluation of upto 35% on YOY basis (Jun-19: 1:164.5; Jun-18: 1:121.6);
 Increase in finance cost by 86% on YOY basis (Jun-19: 13.11%; Jun-18: 7.04%)
 Difficult market situation due to high volatility in worldwide steel prices;
 Sustainable operating position w.r.t Revenue & profitability despite of above
challenges;
 KEY FIGURES

(Rs. in 000’s)
June 19 June 18 % Change
Net sales 3,408,744 2,646,261 29%
EBITDA excl. Non-Recurring Items 275,132 121,362 127%
% of sales 8.1% 4.6%
Non-Recurring Income – Markup 61,935 - 100%
Net Income after tax 86,891 (67,733) 228%
% of sales 2.5% -2.5%
EPS 0.39 (0.65) 160%
Quantity SOLD 23784 24403 -2.5%
CAPU 20281 18221 10%
% 17% 15.2%
QUARTERLY OPERATIONAL ANALYSIS
(Rs. in millions)

1040
978
925
878
830
766

561
505

23 30 29 47
QTR.1 QTR.2 QTR.3 QTR.4

Sales COGS PBT

BREAKUP OF TOTAL COST/EXPENSES

TOTAL COST COGS

1%
2% 5%
2%
1% 5% 1%

Raw material - Tinplate

Salaries, wages and

COGS benefits
Distribution Cost Fuel and power
Admin Expenses
Depreciation
Finance cost

Other manufacturing
92% 91% cost
DETERMINANTS OF ABNORMALLY HIGH
FINANCE COST

DESCRIPTION %
% increase in finance cost over last period 33%
% increase in markup rate 65%
% increase in USD:PKR parity 20%
AVERAGE BORROWING COST

AVERAGE
YEAR RATE
2018-19 12.86%
2017-18 8.04%
2016-17 5.48%
2015-16 5.78%
2014-15 5.89%
 KEY FIGURES FOR SEPT-19 (FY-2020)

(Rs. in 000’s)
Sept 19 Sept 18 % Change
Net sales 602,303 561,016 7%
EBITDA excl. Non-Recurring Items 37,881 41,001 -7.6%
% of sales 6.28% 7.3%
Non-Recurring Income – Markup 16,835 - 100%
Net loss after tax (17,596) 15,717 -211%
% of sales -2.9% 2.8%
EPS (0.08) 0.07 -214%
Quantity SOLD 4053 4536 -10.6%
CAPU 4914 3967 24%
% 16% 13.2%
 PROJECT HIGHLIGHTS

Capacity of CRM 200,000 MT p.a.

Total Cost of Project PKR 6.5 billion (financed by 65% debt and 35% equity)
Machinery Supplier CISRI (Beijing, China)

Project Completion Date November 25, 2020

Raw Material HRC being the raw material for CRC is easily available and will be mainly
Procurement procured through imports. HRC is subject to an import duty of 5%

Key Benefits  In-house availability of TMBP, resulting optimum CAPU of ETP plant
 Reduction in conversion cost of tin plating due to increased CAPU
 Lower rate of import duty on HR Coils as compared to TMBP
 Production with consistent and controlled quality
PROJECT MILESTONES

Ground – Breaking April 18th, 2019

Infrastructure completion March 30, 2020

Arrival of PME January – May, 2020

Installation of PME February – July, 2020

Commissioning July – October, 2020

Commercial Operation October / November, 2020
PROJECT STATUS

 Civil infrastructure 45% completed

 Pre-engineered Buildings 50% completed

PICTORIAL REVIEW OF PROJECT SITE

PPPL Entry section PPPL Central process area

 PICTORIAL REVIEW OF PROJECT SITE

RCL Process area RCL Flooring

 PICTORIAL REVIEW OF PROJECT SITE

Admin Building
CRM
FUTURE OUTLOOK

 The National Tariff Commission has imposed antidumping duty on import of ETP
from China, South Africa, USA and European Union incl. UK;
 Imposition of Anti-dumping duty on import of CRC/TMBP from Russia and
Canada;
 Retention of our loyal customer base which ensures us monthly dispatch of
around 2000 Mtn./month, which is vital for the survival of STPL. However, the
main focus is on increasing the sales volume and the market share;
 The cheap imports from China are still the major threat;
 The CRM project is critical for long term sustainability and profitable operations
of STPL;
 The Export market is the main focus. The management is aggressively exploring
different export avenues;
Q&A
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