Engro Corporation

H1 2023 Analyst Briefing

August 2023

www.engro.com

H1 2023 Analyst Briefing

Important Disclaimer

THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT

This presentation has been prepared by Engro Corporation Limited ("Engro") solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein, or any opinion rendered thereto. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of the presentation. Neither Engro nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

The presentation may contain statements that reflect Engro's own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the future, which are beyond Engro's control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Engro does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation and it does not make any representation, warranty (whether express or implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In addition, past performance should not be taken as an indication or guarantee of future results.

Certain data in this presentation was obtained from various external data sources that Engro believes to its knowledge, information and belief to be reliable, but Engro has not verified such data with independent sources and there can be no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of the included data. Accordingly, Engro makes no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.

You agree to keep the contents of this presentation strictly confidential. All or any part of this presentation may not be taken away, reproduced, copied, redistributed, retransmitted or disclosed in any manner or form and for any purpose whatsoever.

By attending this presentation, you are agreeing to be bound by the foregoing limitations.

Company Profile: Click here

www.engro.com

2

H1 2023 Analyst Briefing

Agenda

1

2

3

4

5

6

Pakistan Economy

Financial Highlights

Portfolio Performance

Growth Projects

Awards & Sustainability

Q&A Session

www.engro.com

H1 2023 Analyst Briefing

Pakistan Economy

Financial Highlights

Portfolio Performance

Growth Projects

Awards & Sustainability

With IMF SBA, looming default risk has been evaded → Our portfolio demonstrated

great resilience during economic downturn and looming risk of default

Certain measures taken by the Government to avert default

Taxation

Inflation &

Monetary

Tightening

Capital Controls

& Deval.

Initiatives by Government

  • 10% Super tax (additional 6%)
  • 1% increase in Minimum Tax Rate
  • Inflation remained elevated → CPI 29.4%
  • Interest rates at 22%
  • Increase in fuel and gas prices
  • Rupee devaluation by 27%
  • Limited imports & forex payments
  • IMF Bail-out package USD 3bn
  • Inflows and rollovers by friendly Countries
  • CCoP approves privatization of PIA & outsourcing airports to the private sector
  • Launch of Sovereign Wealth Fund

Engro's strategic

presence in critical

sectors of the economy has enabled our portfolio to be resilient, which is

partially hedged

against volatility in

foreign exchange and

interest rates

www.engro.com

4

H1 2023 Analyst Briefing

Pakistan Economy

Financial Highlights

Portfolio Performance

Growth Projects

Awards & Sustainability

Financial Highlights - H1 2023

Highlights

3Y Return

Profile

Consolidated

Financial

Highlights

Standalone

Financial

Highlights

www.engro.com

3Y KSE 30 Return

-1.5%

Revenue

PKR 202 bn

14% vs LY

Dividend Income

PKR 11 bn

29% vs LY

* Owners' Share

TSR - Total Shareholder Return

3Y KSE 100 Return

20%

Profitability*

PKR 11 bn

43% vs LY

Profitability

PKR 9 bn

24% vs LY

Engro 3Y TSR

27%

EPS

PKR 19.12

vs. 12.87 LY

EPS

PKR 17.09

PKR. 21.66 LY

Consolidated

Higher profitability is attributable to:

  • higher earnings from dollar denominated businesses.
  • cost optimization across the portfolio.
  • Tariff true-up(one-off adjustment) last year.
  • higher costs incurred on research & business development last year, which has been partially offset by;
  • reversal of commodity cycle.

Standalone

  • Lower dividends mainly from Engro Polymer & Chemicals (commodity cycle reversal) and Engro Fertilizers (lower trading margins).
  • Lower profitability due to lower dividends which has been partially offset by lower research & business development expense in current year.

5

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Engro Corporation Ltd. published this content on 21 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2023 06:46:08 UTC.