#1Descon Oxychem Limited Corporate Briefing OPERATING A 34,000 TPA PLANT, WITH THE LARGEST MARKET SHARE IN PAKISTAN DEE#2DESCON PARTNERS IN PROGRESS 15,000 EMPLOYEES, 26 NATIONALITIES, 7 COUNTRIES DE A REMARKABLE JOURNEY STARTED 40 YEARS AGO OVER USD 1 BILLION IN ANNUAL REVENUES#3Incorporated: Status: Commercial Production: About Us ! DEE 2004 Listed at PSX (2008) 2009 Major Business: Manufacturing and sale of H2O2 Name-plate Capacity: 28,000 MT Actual Production: Paid-up Capital: 34,000 MT PKR 1 billion#4Taimur Dawood Farooq Nazir Faisal Dawood Board Of Directors! DEE Chairman Non-Executive Director Non-Executive Director Mehreen Dawood Non-Executive Director Asif Qadir Independent Director Ali Asrar Hossain Aga Independent Director Haroon Waheed Independent Director Imran Qureshi CEO/Executive Director#5Corporate Surveillance DEE#6Internal Auditors: KPMG External Auditors: Credit Rating Agency: Credit Rating (Jun-18) PwC (A.F. Ferguson & Co.) PACRA Long Term (A) Short Term (A1) DEE#7Quality, Health, Safety & Environment DEE#8QHSE - Certifications QUALITY, HEALTH, SAFETY & ENVIRONMENTAL EXCELLENCE HALAL BURE U ERITAS રચ ERTIFICATION 元 1828 SYSTEM حلال BUREAU VERITAS Certification SYSTEM CERTIFICATION SYSTEM 9001 SGS ISO 14001 SGS OHSAS DES EDI DEE QUALITY ISO 9001 CERTIFIED CERTIFICATION SGS ENVIRONMENT ISO 14001 CERTIFIED SAFETY OHSAS 18001 CERTIFIED 18001#9Production DEE#1040000 Production Trend (MT) 29792 30000 27890 26394 20140 20000 10000 10278 DEE 34697 33293 33400 32506 32098 32234 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (F) Production Trends Linear (Production Trends)#11Industry & Markets DEE#12Industry Snapshot Domestic Demand: 2 players in domestic market: DOL's production: SPL's production: Imports: Approx. 68,000 MT DOL & SPL 34,000 MT 22,000 MT 15% - 20% Antidumping duties have been imposed on multiple international players. DEE#13H2O2 Products & its applications DEE Textile HP provides high bleaching impact at extremely competitive cost. Mining Used as an oxidant and effluent treatment. Food & Beverages To create a sterile environment in aseptic packing units.#14Market Potential DEE • Cosmetic • Water Treatment Livestock • Poultry • Milk * Potential of above markets is in the range of 15000 - 18000 MT per annum. Descon Oxychem Limited#15Key Financial Indicators DEE#16Financial Performance Gross profit margin (%) 40.00 29.52 30.00 25.83 20.76 21.71 19.98 19.03 20.00 10.00 DEE 39.16 2013 2014 2015 2016 2017 2018 2019 (HY) EBITDA margin to sales (%) 37.97 40.00 30.31 28.32 30.00 26.97 23.58 24.15 21.19 20.00 10.00 2013 2014 2015 2016 2017 2018 2019 (HY)#17Financial Performance Net profit margin (%) 40.00 30.00 20.00 10.00 15.43 10.45 2.84 DEE 22.55 2013 2014 2015 2016 2017 2018 2019 (HY) (10.00) (3.74) (4.09) (8.43) (20.00) 100% Debt Equity Ratio 22 22 20 17 75% 83.00 78.00 80.00 50% 25% 93 7.00 100 100 5555 51 49 49 0% 2013 2014 2015 2016 2017 2018 2019 (HY) Debt Equity#18Financial Performance Return on capital employed (%) 30.00 20.00 10.00 8.46 7.25 5.86 40.00 20.00 12.94 DEE 25.86 23.73 20.10 2013 2014 2015 2016 2017 2018 2019 (HY) Return on equity (%) - Net 18.15 11.93 2.97 36.72 2013 (9.18) 2014 2015 2016 2017 2018 2019 (HY) (20.00) (12.33) (31.49) (40.00)#19Financial Performance Earnings/(loss) per share (Rupees) - Basic 4.00 3.00 2.00 1.00 0.44 DEE 3.16 3.09 2.01 2013 2014 2015 2016 2017 2018 2019 (HY) (1.00) (0.50) (0.60) (1.17) (2.00) (50,000) (250,000) Retained Earnings 2013 2014 2015 2016 2017 2018 2019 (HY) (450,000) (462,275) (523,018) (650,000) (642,587) (607,476) (160,692) (344,272) (402,551)#20Financial Performance Share Price 25.00 20.00 15.00 10.00 5.49 5.98 6.03 4.72 5.00 DEE 21.28 19.30 18.35 2013 2014 2015 2016 2017 2018 2019* * As on 19-Mar-2019 12.00 4.00 Price Earnings Ratio 13.67 9.13 9.31 6.11 2013 2014 2015 2016 2017 2018 2019 (HY) (4.00) (4.05) (12.00) (10.93) (9.95)#21Way Forward DEE#22Way Forward DEE - - Capacity Expansion is in progress & DOL will maintain its market leadership position. We will keep striving towards being the Lowest cost producer (energy conservation and efficiency projects). Will keep the plant running at an Optimum level without any unplanned breakdowns. We are moving very fast to increase our share in High Margin & specialized products.#23Thank You! Q&A DEE