FINANCIAL HIGHLIGHTS SIX YEARS AT A GLANCE Geneon) ECE Assets Employed Property, plant ane! equipment 35 33.887 37,488 40,913 57, 60,155, Intangible Assets 20 80 55, 18 Long teim investments 12822 13,314 3agi4 47144 Long term advane 72 76. 85 9 a7 Long term deposit & deferred cost 3 3 3 3 3 3 Curent assets 39.905 46,368 26.468 Total Assets 73,086 65,909 97,337 108,909 125,089 135,868, Financed By Shareholders’ Equity 59,250 69.923 79,78 —AHSG7 A318 99.184 Long-term liabilities Long term finance 360 Current partion of fang term fnar 127 507 Long term deposits and deterred liabilties| 968 7,395 7.349 rent lable gata] tosaa 152: 26.955 Current portion of tong term finan 27) oie 10848 15.257 23578 26829 Total Funds Invested 73,086 85,909 97,337 108,999 125,089 135,868, Turnover & Profit Turnover - Net 45195 45687 47524802141 ATI 2i745 21,208 16952 (13984077 1862018573 13,870 10,052 _—*1,188, Te400 18778 15,119 12,201 «3.820 raft after taxation ie 19692 12,197 10,490 7 Total 3.696 12,079 3,508 Cash Dividend 3 5.497 2,102 General Reserve aaa ania 3437 Profi ear 2377 3.696 12,0 3.508 Earning por share (Rupees) 36.44 37.72 ‘Cash Flow Summary Net Cash from Operating Activites 16,608 17080 17.084 4.954 Net Cash used in Investing Actities (2.130) (6.353) (6,688) (17,906) (20,189) (10.224 ‘ash Ouillow from Financing Actviies 19) (2,889) (3203) (6.477) (2573) _ (1.657), o hand Bank Bal 7854 10361 6.933 (6.308) (14,678) (6.997), at beginning of the Year 8591 16445 26,808 93,738 15,657 at end of the Yea 6.405 7 ding shor term borrowing) 33,738 27,495 182 | CHANGEANALYSIS OF STATEMENT OF FINANCIAL POSITION or) Ea eo Eu ea aa a Share Capital & Reserves 59,258,770 69,922,838 79,764,081 86,96.822 04,318,417 99,183.86! Non Current Liabiites 5505592 6008704 7.208757 —7.895083_—7,102.787 7,728.08 ‘Curent Labi 7480703 OBI7,784 _10,845807 15,257,282 52 Total Equity & Liabilities 73,085,865 85,909,316 97,037,965 108,999,117 125,089,214 195,068,474 Non Current Assets 45.067.916 46,514,689 50,969,400 65,043.40 01,710,415 Curent Assets 27.017.049 90,900,627 —46,367.925 42.955677 93,878,700 28,467,888 Total Assets 73,085,865 05,900,316 97,997,365 108,999,117 125,089,214 135,068,474 Eg Exo Eu Ex ES Era 81.08 80.69 819% 79.24 7540 73.00 Non Ourrent Labi 375 an 7a 678) 569 ‘Curent Labi 10.17 11.20 10.62, 13.98 2181 Total Equity & Liabilities 7100.00 100.00 —*100,.00 100.00 —*100.00 ——~100.00 Non Current Assets 68.08 54.14 52.86 60) 2 79.05 Current Assets 36) 45.86 4764 oat 26.68 20.95 Total Assets 7000010000 ~~«f00100~=~=«10000~—~=«40000~—~—«100.00 Stee Ere Eat ea cary Poy Prd Share Capital & Reserves 16.98 34.64 45.75 59.16 7.37 ‘Non Current Lables 100.00) 8.95 12.70 51 2.45) 208) Current Liabilities 100.00) 29.43 39.20 06.06 Birt 289.67 Total Equity & Liabilities 100.00 17.55 33.18 49.14 75 25.90 Nan Current Assais 100.00 10.64) 48.36 99.08 138.14 Current Assets. 100,00 7182 58.98 2354 57 Total Assets 100.00 33.18 49.14 TAs 85.90 Horizontal Analysis (il) Year Ek a od 2015 Ea Eid ES Eg Share Capital & Reserves 100.00 16.98 15.08 825 5.16 Non Current Lables 100.00 395) Baa) 28) ‘Curent Labiltios 100.00 2048 7s: 471 Total Equity & Liabilities 100.00) 17.55 13:30 1198 Non Current Assets 100,00 097, 958) 2957 Curent Assets 100.00) 4581 17.70 736) Total Assets 100.00 17.55 13.30 11.98134 ANALYSIS OF PROFIT AND LOSS ACCOUNTS ‘Operating Prost Terr2ses _1asi966 te.s7a008 13,670481 To.sa009 1,107,973, Fear EET Profi before tation TEoTi7o4 Teaoozz2 Te77ez53 _1,116055 12212158 319.928 Prof aeration Teas soe va.ea,105 1.608208 2,197.090__Toaooa29 349,908, Cra Ca ae 6) mz ea Tara Ex Tea “ola Comprehensive neo. TEsresez__vaerana__as05a03_1a07e 216 __T0ss0595 350805, ee Ea 2016 em mn a 100.00 rr no 10000 ‘Operating Prost 3600 ais woes 77 72.08 119 360 a Gross Prof 774 555 Ta0n wor) as) ‘Operating Prost 1856 i627 i392) zs) (e263) Pratt before a is60 (99) 23.19) 7599) Prof aera a 0.18 (89) 173.10) a8 70.6 eat) (805) 785) EERIE EE om ‘Operating Prost Prat before 205 Ta) EXO} 578 (1992) 113.99) “ola Comprehensive Income. 56 80) (275), CHANGENOTES ON ANALYSIS Comments on six year Statement of Comprehensive Income analysis Turnover Revenues decline from PKR 44.8 bilion in 2015 to PKR 41.9 bilion in 2020 with a decroase of 6.5%. Both local & exnort sales were adversely effected due to Covid 19 locally and internationally. Further increase in capacity coming online locally, has put a downward pressure on margins. Cost of Sales ‘Cost increased from PR 246 billion in 2015 to PKA 35.8 in £2020 billion with an increase of 45.6%. This is mainly due to increase in gas prices, higher transportation cost on input material, increased packing material prices and adverse rupee exchange pay, Gross Profit GP decreased from PKR 20.2 billion in 2015 to PKR 6.1 bilion in 2020 with a decrease of 69.9%, This Is mainly attrauted to change in sales mix from cement to clinker that resulted in lower net retentions. Moreover, higher prices of Dbought-in materials and other costs also contibuted in the decrease of gross profi Finance Cost Currently there is minimal finance cost as Company's capital structure is significantly based on equiy finance. Comprehensive Income ‘Comprohnensive Income decreased trom PKR 12.4 bilion in 2015 to 3.5 billion in 2020 with a decroase of 71.6%. sovacaies or gussamaniry 20 gunat acronr SRS SH eataaRete”” 3B Comments on six year Statement of Financial Position analysis Share Capital & Reserves ‘The share capital remained the same however, reserves increased due to increase in undistributed profits for financing new projects & investments. Non Current Liat ‘There is an increase of 20.8% in NCL from 2016 to 2020 mainly because of long term deposits and loan Non Current Assets ‘There is an increase of 183.1% in NCA from 2015 to 2020 mainly due to capital expenditure on Capacity expansion & ‘enhancement, altemative energy, WHR, Ventometic Packing Plant, Vertical Grinding Mil, Vertical Cement Mills and equity investments in Kia Lucky Motors, Lucky Electric Power and other offshore projec in rag & Congo. Comments on six year Statement of Cash Flows analysis Lucky has a persuasive cash flow system, The compary has minimum borrowing as of 30th June 2020 and al the Company's projects and investments are primarily financed by internally generated cash flows. 195FINANCIAL PERFORMANCE Financial Ratios [CT Profitability Ratios iv0ss prof o sales percent Siena Operating Cost to sales Percent 6400% —S875% SOS —~70RDR —~1907% —_~97.18% Prof bere ax to alee percent 0555% 40.77% 410% TBO, Net prof ale fax o ale percent 27 2.68% 25.66% EBITDA to see per a17% 48.95% re Operating Leverage per 20.73% 1841 50%. Return on Equty afer tax percent 1872 Raturn on Gant Employed percent 22.70% 20.16% Liquidity Ratios Curent ratio imes 3647 410 12a at —008. duick/Acie test rao imes 2751 aa 1 2ie toms 06s (Cash to Current Labi part 279 1 180:1 0661 027 ‘Gash ow tram Operations ta Sales im 042 oa 1 080:1 0861 012 ‘tivity | Tumover Ratios Inventory tnover ines a8 390 305) 322 315 No.of days in veriony cays 10610 os) tea? nas isa Dabortmove = es? 2427 PTSD ‘No.of ays in Recavabe cay Te ETT) Credor tow i a8 278 278 1 86 No.of das n Payables uy wes vest 121 _—_—*89 70 7299 —10628 ang Oye ays 807 __—_—*1108 T8049) (008) (678) Tal asses toner E 77 O48 098 31 Faced assets mover 3 1a 16 aa. 070 Thvestment Valuation Ration Earings per shave ato rupees | a2 Pico / Eaming ratio (ator ax im 1620 17 we Dividend Yield percent 17% = 256s 17% 000% Dividend Payout a 2.41% Mare _PO0IR 000% (aah Dividend per share 20 20 1300 650. Break up value per share B05 Ma Ts 26708 RST _—aB Maret Vela Per Share a on oh dane runes S102 35626 S079 «SBT _—_—«AB SB Rupees 540 oees 72319 58885 ——_~S6SAT Your Low Glos 009 4868 GAE TT sear 31080 Price to Book Ra pereent 2a 508 sa 10 a Capital Structure Ratios Financial overage ratio 0 000 o00;1 00071 3 00 Weighted Average Cost of Dest Percent 000% 000% ~—~O00K —«7aR~—~C«TI Debt io Equity rato imes 000 000 ooar1 _a00:1 0.00 bar Interest Coverage ala im 2016 am 138 | CHANGEANALYSES OF VARIATION IN INTERIM PERIOD oo E ‘Sales Volume (in'000 Tons) 1,635 23082 2,126 1,822 7,625 Sales Revenue 1,582 11.297 9428 a1art Cost of Good Sold 9,850 9.935; 7.872 35,794 Gross Profit 4,782 1,302 1551 6077 Gross Profit Margi 15% 12% 6% 15% Operating Profit 516. (60) 516 1188 ‘Operating Profit Margin 2% 3% 19% 5% 3% EBITDA 1,084 1,387 986 1,582 5,039 EBITDA Margin 6 12% 9% 17% 12% ‘Net Profit Before Tax 1,022 177 1079 3820 Taxation 18 0 476 (Net Profit After Tax 956 980) 999 3844 Net Profi ter Tax Margin 0% 3% a 3% EPSin PKR. 298) 3.03) 26 10.34 During the FY 1 Margin of 85 ‘operational costs also decreased owi company. The 3c! Quarter outperformed other quarters in terms of bottom-line profitability anc Earnings Per Share (EPS). 31d Quarter contributed sales volumes of 2.13 Millon Tons and bottomline profitability of PAR 0.99 Billion in values and 9% in terms of Net Prof after tax margin.COMPOSITION OF BALANCE SHEET Equity and Liabilities - FY 2020 Parentage Equity and Liabilities - FY 2019 Percentage Assets - FY 2020 Assets - FY 2019 Foreonege Poronage 138 | 2gyensze CHANGEFINANCIAL AT A GLANCE140 STATEMENT OF VALUE ADDITION AND WEALTH DISTRIBUTION Er ey WEALTH GENERATED. Gross Sales/ Revenues 162,302,086 67,547,998 Boughtin-material and services (29,226 820) (26,643 686) 33,075,766 100.0% 40,904,252 100.0% WEALTH DISTRIBUTION ‘To Employees: Salarias, benefits and other costs 5,284.9 28% 8193470 7736 ‘To Government Income tax, sales tax, excise duty and others 20,028,448 606% 20,980,288 51.3% ‘To Society Donation towards educalion, health andl environment 7a 7a8 0.596 313,207 08% ‘To Providers of Capital Dividend to shareho ders 2,101,938 64% 2,507,000 62% ‘Markup / Interest expenses on barowed funds 176,378 05% 24,933 01% ‘To Company Dapresiation, amortization & retained prot 7,350,297 222% 19,856,359 33.9% 33,075,766, 100.0% 40,904,252 100.0% Wealth Distribution - 2019 PercentageECONOMIC VALUE ADDED (EVA) EVA i the relevant yardstick for measuring economic profits, EVA is the company’s net operating proft after tax, afte deducting the cost of capital. Companies, which return higher than the cost of capital, create wealth forthe shareholders and Con the other hand companies earning retumns lower than the cost of capital, destroy shareholders wealth, Cost of capital Gost of Equity % 11.20% Weighted aver apital (WACO) % 12.53 14.31% ‘Average capital employed 83,075,902 96,751,189) Economic Value Added NOPAT 12,197,080 3520311 Less: & 10,409,410 13/886 217 Economie Value added 1,787,680 (10,325,907) Enterprise Value Market Value of Equity 149,268,433 ‘Aad: Debi 506,808 Less: Cash & Bank balane: 27 435,361 15,657,246 7,816 606 Enterprise Value 136,816,503 107,077,241 140,939,979 Return ratios NOPAT / Average capital employed % 15% 12% 4% /A Average capital employedt % 2% 6 “11% Enterprise value / Average capital employed 165 2 146. FREE CASH FLOW (FCF) 201 2018-19 re Net cash provided by operating activities 079 17,083,851 Less: Capital Addlions & Investments (18,112,989) (28,015,835) (5.807.497) ‘Ada: Net Debt issu 506,908) FOF - Total (1,082,461) (17,937,988) (10,346,648) 141DUPONT ANALYSIS a1g71 Mn Ato Gormungton 4889 Mn et ete gn soca 5.0% 38,363 Mn nen L] swcsies bone 41871 Mn Comat ants - 26,468 Mn LJ wrsseas sates, wage 135,868 Mn [7] a205 Mn “nares | | sum on Eau 107,401 Mn wee soa atl Dagon 8 99,184 Mn 3851 Mn wearers | | Came aie 135,868 Mn 28,955 Mn lables twee (36,685 Mn * 476 Mn ferc Non carat Coenoe [= roe’ | [+ 137 7,729 Mn Tel sets coe cots 135,868 Mn 2,220 Min vee Capa & 99,108 Mn 36,685 Mn Prot Maria Assets Turnover Fane Leverage ROE ver (Ret PronTumeve) TumoverTotal Asses) (Total AxeetaTotal Ey) 7m 2 © Bxaxe 2 ro oat a7 35% zai zane aa Te cor a7 a oar 122 Tee ‘The main highlights of DuPont analysis ae as follows: strongth ofthe balance sheet. The Equity has further strengthened due to addtional profteblty, which nas 1. The proft margins of the company destined during intun strengthened the retained earings account current year due to ‘ower seling prices relative to . higher input cost. Conclusion 2. The Asset base of the company has improved during Qygrail, the operational & assets efficiency and Equity the current year mainly due to investment in subsidiary jiltipier are monitored on a regular basis to remain aware companies and fixed assets (new production line). of the fnancial healtn of the Company. The DuPont analysis 3, The Financial Leverage ratio for the Company has for the last 6 years depicts a positive trend in Return on improved due to incremental Assets base and Equity Equity (ROE) of tre Company.SHARE PRICE SENSITIVITY ANALYSIS Price Sensitivity F A 5 Esso 5 a ¢ a Lucy Sorat se Pree == = = = = # §¢ € € & 3 8 $ 8 BF £ 8 F F BF FS Lucky Cement Shares (LUCK) ee traded on Pakistan ane Gyrreney Risk London Stock Exchanges. Our treo float is 36.78% and market capitalization at the end of day of fiscal year was PKR 149 Billion. There are many factors, which might affect the share price of our Company, few of which are listed below, Profitability Reduced margins on account of increasing production costs can contribute towards lower protitabilly and EPS which may decrease the market share price. Commodity Prices Increase in major input price (Coal, power and raw material tavifs) can negatively affect the margins and decrease the EPS which in tum can drive the market share price downwards. Regulations and Government Policies The share price is also senstive to any changes in policies by the government and regulatory authorities’, both specific to the cement sector and overall business activiles may affect the market share prices ether positively or negatively, {depending on whether the policy isin favor of or against the industry sovocaies or gussamamiry 2 2 ‘The volatity in currancy exchange rates can also atfect the market share prices as the Company is involved in both ‘export and import (exports of cement and import of input fuels) so the margins can be affected positively or adversely. Market Risk ‘Apart from systematic risk, the market share price is also ‘exposed to all the risks of the stock exchanges itis trading ‘on. The Bota of LCL with respect to market is 1.24 Diversification ‘The Compary has diversified both in terms of geographical location and nature of business, Our international footprint also opens us to the benefits and risks of the markets we ate operating in and our business diversification aftects our ‘consolidated earnings, which in tum also affects our EPS and therefore can drive our share price positively or negatively. Goodwill ‘The market share price can also vary wih the investor sentiments towards the company which changes very quickly in response to the news and events and also because of investors’ following of the general markat trend, 143,