ANALYST BRIEFING

2017
International Business Context
• International PVC Price
USD/Ton
Q1 Q2 Q3 Q4 – PVC prices remained weak
1,200
during 4Q of 2017 until
951
1,000
925
December when demand picked
800 up and supported prices. Off
600
late PVC prices have shown
strength

September

November
January

May

October

December
February

March

April

June

July

August
2014 2015 2016 2017
• International Ethylene Price – Ethylene prices remained
USD/Ton firm during the quarter, due
Q1 Q2 Q3 Q4 to planned turnarounds and
1,400 strong demand from some
1,200 1241 derivative products
1034
1,000
800
January

September

November
April

May

October

December
February

March

June

July

August

2014 2015 2016 2017

2
Ethylene, Crude oil and PVC
• Analysis of ethylene and crude oil prices
USD/Ton USD/bbl
– In 2017, ethylene and crude
70
1,400 oil did not follow the precise
1,200
50 pattern and relationship
30
remained weak
1,000

800 May 10
January

September

October

November

December
March

April

June

July
February

August
Ethylene '17 Crude Brent '17

• PVC- Ethylene Core Delta

USD/Ton – For 4Q ‘17, PVC – ethylene
core delta averaged at
600 $339/mt and full year average
400 stood at $ 413/mt
200

-
January

September

November
March

April

May

October

December
June

July
February

August

2013 2014 2015 2016 2017

3
Domestic Market Overview
PVC Caustic
– EPCL achieved its highest ever – Caustic soda sales performed in
sales and production numbers line with same period last year
for a year in 2017
– Market dynamics remained
– The Company posted a 11% stable
volumetric growth on YoY basis
and was constrained by capacity
otherwise market appetite was
available

4
Business Highlights
Caustic Domestic Market Share *
4Q 2017 4Q 2016 2017 2016

Caustic Production (KT) 28 25 105 103

32%
Caustic Sales Volume (KT) 22 19 84 83
68%
Hypo Sales (KT) 7 7 24 22

HCL Sales in (KT) 6 6 18 18 EPCL Others

PVC Domestic Market Share *

4Q 2017 4Q 2016 2017 2016
16%
PVC production (KT) 46 44 188 172

VCM production (KT) 41 41 180 174

17%
PVC Sales in (KT)
67%
Local 50 41 187 168

Export 1 2
EPCL Sales Resin Imports Scrap

* Market share is based on our best estimates and have not been verified by an independent source 5
Financial Summary
PKR Million 4Q 2017 4Q 2016 2017 2016
Total Revenue 7,341 6,245 27,731 22,854
Profit/(Loss) Before Tax 239 1,129 3,115 1,187
Profit/(Loss) After Tax 106 628 2,053 660

• In 2017, the Company achieved a revenue of Rs 27,731 Mn as against Rs. 22,854 Mn in 2015

• The Company posted a profit after tax of Rs. 2,053 Mn as against a loss after tax of Rs. 660 Mn last year

• The company has announced Final Cash Dividend of Rs 0.80/share.

• The company replaced its expensive loans with competitive priced loan

• Variance as compared to last year was witnessed on account of:

– Higher domestic sales of PVC and operational efficiencies
– Lower financial charges
– One time provisions and costs amounting to Rs. 412Mn

6
Outlook for 1Q ‘18
• Domestic PVC demand is expected to remain stable on account of favorable
outlook for construction and project completion ahead of elections
• Caustic Soda market is expected to remain stable
• Ethylene volatility is expected to stay muted

7
Thank You