CORPORATE BRIEFING SESSION BOLAN CASTINGS LIMITED INTRODUCTION

• Bolan Castings Limited is a Public Limited Company and listed on the Stock Exchange.

• The Company was incorporated on 15th July, 1982 as a Public Limited Company by Pakistan Automobile Corporation Limited (PACO) under the administrative control of Ministry of Production, Government of Pakistan.

• The plant was commissioned in June 1986 with the assistance of Foundry Management & Design Company (FMD), United Kingdom (U.K) and commercial production was started in July, 1986. INTRODUCTION

• The Company was privatized and handed over to a group of management under a joint collaboration of Limited and the employees of Bolan Castings Limited on 13th June, 1993.

• The main business activity of the company is to produce castings of tractors and automobiles parts. PRODUCTIN FACILITIES

Bolan Castings Limited, Production facilities consist of : • Two foundry plants which can produce more than 16,000 tons per year of castings in grey and ductile iron • Duplex melting facilities • Induction Melting • High pressure moulding line • Fully computerized green sand plant • New sand preconditioning plant • Sand washing plants • Resin coated sand plant • Finishing shop for shot blasting, fettling, grinding and painting • Pattern making through CAD/CAM process • An ancillary workshop for the fabrication and maintenance GROUP COMPANIES

• Millat Tractors Limited

• Millat Equipment Limited

• Millat Industrial Product Limited

• TIPEG Intertrade DMCC CUSTOMERS

• Millat Tractors Limited • Millat Equipment Limited • Al-Ghazi Tractors Limited • Mecas Engineering Limited • Infinity Engineering Limited

• Hino Pak Motors Ltd. • Ghandhara Ltd. • Ghandhara Industries Ltd. • Corp. Ltd. • (Daewoo) PRODUCTS GALLERY PRODUCTS GALLERY PRODUCTS GALLERY PRODUCTS GALLERY ECONOMIC OVERVIEW

• At the end of the first half of the fiscal year 2019-20, Pakistan's economy seemed to be on the path to stability.

• The macroeconomics stability gained during the period however was challenged by the COVID-19 pandemic in the second half of the fiscal year 2019-20 , thus making the fiscal year toughest in the history of Pakistan’s economy.

• The lockdowns all across the country combined with global depression ended up shattering the economy which resulted in a growth contraction. All major economic targets were missed in the fiscal year 2019-20. BUSSINESS REVIEW

• There was a visible decline in tractor market and its vending industry in fiscal year 2019-20.

• The decrease in sales of tractors has badly affected the sales and production targets of the Company.

• During the fiscal year 2019-2020, the company produced 6623 MT of castings against 8694 MT in the last year with 24% production decline.

• During the year under review, 7280 MT of castings has been sold against 9646 MT in the last year with 25% decline in sales. BUSSINESS REVIEW

• In addition, the devaluation of Pakistani Rupees against foreign currencies has resulted increase in raw material and fuel prices.

• All these factors have predominantly contributed towards the gross loss. TWO YEARS AT A GLANCE

(Rupees in thousand)

2019-20 2018-19 INCOME Revenue from contracts 1,332,568 1,513,636

Gross Profit / (Loss) (88,132) (149,777 Gross Profit / (Loss) % (6.61)% (9.90)%

Profit/(Loss) after tax (271,688) (238,999) Profit/(Loss) after tax % (20.40)% (15.79)%

Earnings per share ( Rs.) (23.68) (20.83)

Dividend ( % ) - - TWO YEARS AT A GLANCE

(Rupees in thousand)

2019-20 2018-19 FINANCIAL POSITION Current Assets 561,021 808,414 Less: Current Liabilities 722,949 745,231 Net Working Capital (161,928) 63,183

Property, Plant and Equipment 228,901 259,216 Others-Non Current Assets 143,192 114,637 210,165 437,036

Less : Other Liabilities (115,773) (55,234)

Shareholders' Equity 94,392 381,802 COMPANY PERFORMANCE Production (MT) ( M.T )

18,000 16,294 16,000

14,000

12,000 11,566

10,000 8,436 8,694 8,000 6,623 6,000

4,000

2,000

- 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE Sales Value – Sales Tonnage (Rs. in 000) (MT) 2,500,000 18,000 2,299,931 16,000 2,000,000 1,744,098 14,723 14,000 12,000 1,513,636 1,500,000 1,333,476 11,199 1,332,568 10,000

8,000 1,000,000 8,602 9,215 6,839 6,000

500,000 4,000 2,000

0 0 2015-16 2016-17 2017-18 2018-19 2019-20

Sales Value Sales Tonnage COMPANY PERFORMANCE

Gross Profit/(Loss) (Rs. in ‘000)

350,000 328,202 246,628 250,000

150,000 140,876

50,000

(50,000) (88,132) (150,000) (149,777) (250,000) 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE

Profit after Tax (Rs. in ‘000)

150,000 133,402 97,776 50,000 25,870

(50,000)

(150,000)

(250,000) (238,999) (271,688) (350,000) 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE

Earnings Per Share (Rs.)

15.00 11.63 10.00 8.52

5.00 2.25 -

(5.00)

(10.00)

(15.00)

(20.00) (20.83) (25.00) (23.68) 2015-16 2016-17 2017-18 2018-19 2019-20 PRINCIPLE RISKS

• Any change in the tractor sale and government policy may have a direct impact on our sales and profitability.

• Foreign exchange risk persists on import of raw material may increase cost of production.

• Interest rate risk may increase cost of borrowings which may decrease profitability.

• Changes in relevant income tax, sales tax and custom relevant laws, may have direct impact on sales and profitability. FUTURE PROSPECTUS

• Market feed back is positive for fiscal year 2020-2021.

• Demand for tractor is soaring locally as well as globally.

• Our main customer Millat Tractors Limited is also planning to focus on export

• The spillover effect thus improve our company’s financial health as well.

• All possible measures are being taken for reducing cost along with continuous emphasis on financial controls and operational efficiencies. Q & A Session Thank You