#1THE ATLAS WAY INTEGRATED ANNUAL REPORT 2020 Atlas Honda ATLAS HONDA LIMITED Financial Year Ended March 31, 2020 Corporate Briefing Session 2020 -#2Atlas Atlas Honda MR. YUSUF H. SHIRAZI FOUNDER CHAIRMAN ATLAS GROUP OF COMPANIES Jan 1st, 1929 Oct 20th, 2019 WELCOM REMEMBERING OUR LEGEND • • • • October 20, 2019 will be remembered as a sad day in Atlas History. He was a Visionary person with unique business acumen. One of the most Successful first generation entrepreneurs of Pakistan. His Collaboration with Honda Motor has paved the way for establishment of the Auto Industry in Pakistan. He managed to build enduring joint ventures with world-renowned foreign companies. Mr. Shirazi was highly respected as a patriot, industrialist, author and philanthropist, in recognition of his services he was decorated with Sitara-e-Essar and Sitara-e-Imtiaz by Government of Pakistan. We will continue to draw inspiration from his extraordinary life and be guided by his principles of the ATLAS WAY#3Atlas RIDE THROUGH THE SESSION Atlas Honda S.NO AGENDA ITEM ABOUT THE COMPANY 1. 2. 3. FINANCIAL PERFORMANCE ECONOMY AND INDUSTRY 4. SUSTAINABILITY HIGHLIGHTS 5. QUESTIONS AND ANSWERS#4Atlas Honda 1. About the Company#5Atlas Atlas Honda GEOGRAPHICAL PRESENCE BALOCHISTAN KARACHI SINDH HYDERABAD KHYBER PAKHTUNKHWA MUZAFTARASAS ISLAMABAD GIGIT FATA PUNJAB SHEIKHUPURA RAHIM YAR KHAN MULTAN FAISALABAD LAHORE GILGIT BALTISTAN • JAMMU AND KASHMIR • Head Office: Karachi Registered Office: Lahore • Production Facilities : • Karachi and Sheikhupura Branch Offices and Customer Care Centers : Hyderabad, Lahore, Multan, Islamabad, Rahim Yar Khan Faisalabad, • Showroom: Karachi Head Office: Registered Office: Factories: Branch Offices & Customer Care Centres: Showroom: Karachi Lahore Karachi, Sheikhupura Lahore, Multan, Islamabad, Hyderabad, Faisalabad, Rahim Yar Khan Karachi Dealers Network : Across Pakistan#6Atlas Atlas Honda MANUFACTURING FACILITIES SHEIKUPURA (SKP) KARACHI (KHI) Ay -Cams ho Atlas Honda ⚫Start Operation: May-1979 ⚫Start Operation: Sep-1965 •Capacity: 1.2M/Year •Capacity: 0.15M/Year#7Atlas Honda 2. Economy and Industry#8140.00 170.00 Atlas Atlas Honda Interest Rates 14.00% 13.25% 13.00% 12.25% 12.00% 11.00% 10.00% 10.75% 9.00% Highest policy rate in 5 years 8.00% 7.00% Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 MACRO-ECONOMIC ENVIRONMENT Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 USD PKR 166.10 CPI Inflation 15.0% 14.6% 14.0% 12.50% 12.7% 13.0% 12.0% 11.4% 12.4% 12.6% 11% 11.0% 10.5% 11.0% 10.0% 10.2% 9% 9.0% 8.4% 18% 8.0% 8.3% 8.4% High inflationary levels 8.5% 8.0% 7.0% Jun-20 165.00 163.00 111.00 159.50 159.60 160.00 110.00 160.25 155.64 154.86 154.64 155.00 156.90 109.00 156.35 155.35 154.50 154.48 Apr-19 May-19 Jun-19 Jul-19 Apr-19 May-19 Jun-19 Jul-19 112.00 111.40 150.00 108.00 108.29 147.85 107.86 145.00 141.29 PKR depreciated by 18% against USD FX reserves: USD 14.2 billion 107.00 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 106.00 Apr-19 May-19 Aug-19 Sep-19 Oct-19 Jan-20 Nov-19 Dec-19 Feb-20 Mar-20 Apr-20 May-20 USD JPY USD depreciated by 3% against JPY 108.83 Challenging Economic Scenario worsened by COVID 19 → GDP growth of -0.4% Jun-19 Jul-19 106.26 108.08 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 107.94 107.99 108.33 107.45 107.96 107.80 107.30 109.46 108.72 Jun-20 Jun-20#9Atlas Honda Atlas Honda AUTO-INDUSTRY PERFORMANCE Segments Cars LCVs, Vans & Jeeps Pick-Ups Tractors Trucks Buses Three Wheeler Motor Cycle Grand Total Source: PAMA Apr'19 - Mar'20 Sales nos. Apr'18 - Mar'19 Sales nos. Year on Year Change 132,601 215,774 39% 5,106 8,878 42% 15,825 27,159 42% 36,176 56,369 36% 3,848 5,828 34% 752 968 22% 48,811 62,757 22% 1,579,601 1,776,928 11% 1,822,720 2,154,661 15% Overall Industry took the burnt of Economic Challenges → volume down by 15%#10Atlas Honda 3. Company Performance#11Atlas Atlas Honda Operating Highlights ANNUAL PERFORMANCE Apr 19 - Mar 20 Apr 18 - Mar 19 Variance % Production Units 1,058,030 1,140,830 7% Sales Units 1,060,029 1,135,840 7% Revenue Rs. in Mn 84,776 82,413 3% Gross Profit Rs. in Mn 6,116 6,556 7% Gross Profit % 7.2% 8.0% 10% Profit Before Tax Rs. in Mn 4,412 4,615 4% Profit Before Tax % 5.2% 5.6% 7% Earning Per Share Rs. 24.81 25.86 4% Cash Dividend payout 50 % 60.5% 64.5% 6% At the end of Period Total Assets Rs. in Mn 31,060 31.955 3% Shareholders Equity Rs. in Mn 16,580 15,366 8% Share Performance Price per Share Rs. 370 378 2% Market Capitalization Rs. in Mn 48.39 41.36 17%#12Atlas Atlas Honda Sales Q4 QUARTERLY ANALYSIS Rs. 84,776.0 Million Q1 24.4% 26.9% Rs. 20,721.0 m Rs. 22,832.1 m Sales 26.8% 21.8% Q3 Rs. 22,752.3 m Rs. 18,470.6 m Q2 Gross Profit Rs. 6,115.9 Million Q4 Q1 25.0% Rs. 1,531.0 m Gross Profit 28.1% Rs. 1,715.7 m Q3 25.5% Rs. 1,561.0 m 21.4% Rs. 1,308.2 m Q2 Profit Before Tax Rs. 4,411.8 Million Profit After Tax Q4 Q1 Q4 Q3 Rs. 3,078.4 Million Q1 26.3% Rs. 1,158.3 m 27.2% Rs. 1,201.4 m 27.3% Rs. 1,203.0 m Profit Before Tax 19.2% Rs. 849.1 m Q2 27.1% Rs. 835.7 m 27.0% Q3 Rs. 830.1 m Profit After Tax 27.4% Rs. 842.1 m 18.5% Rs. 570.5 m Q2#1328,000 21,000 14,000 7,000 15,782 Atlas Atlas Honda BALANCE SHEET Rs. in Million Property, Plant & Equipment Rs. in Million Equity 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 4.983 5,818 6,962 8,000 6,000 4,000 2,000 1,000 0 2015 2016 2017 2018 2019 2020 7.976 8,951 10,041 18,000 16,000 14,000 12,000 10,000 9,239 11,002 13,258 Rs. in Million 35,000 Total Assets 20,369 25,643 31,827 31,955 0 0 2015 2016 2017 2018 2019 2020 31,060 4,000 Rs. in Million 16,000 12,000 8,000 5,770 8,585 SIX YEARS AT A GLANCE PROFIT & LOSS 2015 2016 2017 2018 2019 2020 Current Liabilities 11,486 2015 2016 2017 2018 2019 2020 14,866 15,593 0 13,323 1,000 2,000 16,001 15,366 Rs. in Million 5,000 4,000 3,000 2,351 3,002 2015 2016 2017 2018 2019 16,580 Rs. in Million 100,000 80,000 60,000 40,000 20,000 0 2015 3,752 2020 45,772 T 55,022 64,534 2016 2017 2018 2019 2020 Profit After Tax 4,664 3,209 3,078 Sales 77,479 82,413 84,776#14Atlas Honda 4. Sustainability Highlights#15Atlas Honda Rs. 46.2 million donated SUSTAINABILITY HIGHLIGHTS 5,976 Hours spent on Employee Training 39,000 Customers served with free services 4% reduction in water consumption (per bike) કાજુ 15,672 students attended safety lectures 9% Reduction in effluents and waste per bike 578 women trained for bike riding 1st prize in Punjab Horticulture Society Award by NFEH for CSR Report#16Atlas Honda QUESTIONS AND ANSWERS#17THANK YOU