Arif Habib : Corporate Briefing Presentation - 2023

Arif Habib Corporation Limited

Analyst Briefing - November 2023

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 Arif Habib Corporation Limited ("AHCL") 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 AHCL 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.

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Arif Habib Corporation Limited

Arif Habib Corporation Limited is the flagship company of the Arif Habib Group. The company took over the sole proprietorship business set up by Mr. Arif Habib in 1990 and was incorporated in 1994 as a public limited company with a paid-up capital of PKR 40 million.

In 2001, AHCL achieved a significant milestone by becoming a publicly listed company, with an initial public offering (IPO) of one million shares aimed at raising PKR 80 million to fuel its growth trajectory. Since its IPO, the company has demonstrated a strong commitment to its shareholders, distributing a total of PKR 16 billion as dividends (including specie dividends). Moreover, AHCL conducted two buybacks of its share having face value of PKR.10; first in 2005-06 amounting to PKR 720 million at prices of PKR 360 per share, and second in 2019-20 amounting to PKR 1.225 billion at prices of PKR 27 per share.

As of June 30, 2023, AHCL has strong equity base of PKR 20 billion built through retained earnings. This remarkable journey has translated into a compounded annualized return of 23% for the initial investors who participated in the IPO back in 2001. The Arif Habib brand is widely recognised as synonymous with unwavering commitment to best practices and a paramount dedication to prioritising its stakeholders. These principles have become ingrained in the company's identity, setting a standard that stakeholders have grown to anticipate from an organisation relentlessly pursuing excellence within its industry.

Long term Investments as on 30th June 2023

S. No.	Strategic Investments	Shareholding (%)
1	Arif Habib Limited	72.92
2	Sachal Energy Development Private Limited	85.83
3	Fatima Fertilizer Company Limited	15.19
4	Globe Residency REIT (GRR)	55.18
5	Silk Islamic Development REIT (SIDR)	20
6	Naya Nazimabad Apartment REIT (NNR)	16.54
7	Black Gold Power Limited	100.00

Key Highlights

Revenue

Standalone	Consolidated
FY'23: 2,902 million	FY'23: 7,950 million
+67.46%	+47.00%
FY'22: 1,733 million	FY'22: 5,408 million

(Loss) /Profit after tax

Standalone	Consolidated
FY'23: (972) million	FY'23: 3,816 million
-125.86 %	-4.86%
FY'22: 3,758 million	FY'22: 4,011 million

EBITDA

Standalone	Consolidated
FY'23: 192 million	FY'23: 8,902 million
-95.20%	+29.01%
FY'22: 4,003 million	FY'22: 6,900 million

(Loss)/ Earnings per Share

Standalone	Consolidated
FY'23: (2.38)	FY'23: 8.37
-125.87%	-1.53%
FY'22: 9.20	FY'22: 8.50

Key Highlights

Total Assets

Standalone	Consolidated
FY'23: 23,814 million	FY'23: 57,780 million
-8.63%	+6.50%
FY'22: 26,064 million	FY'22: 54,251 million

Total Equity

Standalone	Consolidated
FY'23: 20,469 million	FY'23: 37,187 million
-14.12%	+4.43%
FY'22: 23,834 million	FY'22: 35,610 million

Breakup Value per Share

Standalone	Consolidated
FY'23: 50.12	FY'23: 91.06
-14.12%	+4.43%
FY'22: 58.36	FY'22: 87.20

Long Term Liability to Equity

Standalone	Consolidated
FY'23: 2.59%	FY'23: 31.46%
FY'22: 0.56%	FY'22: 29.01%

Current Ratio

Standalone	Consolidated
FY'23: 2.07x	FY'23: 1.90x
FY'22: 3.21x	FY:22: 2.37x

Subsidiaries

72.92%

72.92 %

100%

85.83%

Arif Habib Limited and its subsidiaries

Arif Habib Limited (AHL) took over the Group's securities brokerage business in 2005 and has since then raised the flag even higher.

AHL is one of the largest listed securities brokerage and investment banking firms in Pakistan that has won accolades both in Pakistan and abroad from reputed ranking firms such as Asiamoney, The Asset, Finance Asia, CFA Society, SAFE, Financial Market Association of Pakistan and others over the years. Central Depository Company of Pakistan (CDC) has bestowed the "Top Brokerage House for Opening Roshan Digital Accounts" to the Company and AHL is also eight times recipient of Pakistan Stock Exchange's (PSX) "Top 25 Companies Award".

The firm offers financial services in the domains of equity, fixed income, money market & forex brokerage, investment banking corporate advisory services. AHL holds significant market share in brokerage and investment banking segments and enjoys a strong relationship with top international financial institutions. Besides Equity market, AHL offers Commodities Brokerage through its wholly owned subsidiary, Raayan Commodities Pvt Limited providing commodities futures brokerage services.

Contribution in AHCL's P&L

Standalone

	FY'23: 250 million
Operating revenue	-39.85%
	FY'22: 415 million
Gain / (loss) on sale of	FY'23: Nil
-100%
securities:
FY'22: (37) million

Contribution in AHCL's P&L

Consolidated

	FY'23: 1,616 million
Operating revenue	+33.79%
	FY'22: 1,208 million
	FY'23: 151million
Profit after tax	-82.49%
	FY'22: 864 million

Sachal Energy Development (Pvt.) Limited (SEDPL)

Sachal Energy Development (Pvt.) Limited (SEDPL) has commissioned and operates a 50 MW wind farm at Jhimpir, Sindh.

Contribution in AHCL's P&L

Standalone

The Group believes that alternate sources of energy are the way forward. SEDPL is contributing to the national development by reducing dependence on imported fossil fuels and producing 136.5GWh of clean energy per annum. The groundbreaking ceremony of SEDPL was performed by

Operating revenue

FY'23:1,247 million

+11,834.56%

FY'22: 10 million

the Chinese President as it is part of the CPEC-Energy Priority Projects. SEDPL is the first Pakistani owned Wind project under CPEC to have achieved commercial operations. SEDPL also holds the honour of being the first privately owned Pakistani project to receive SINOSURE backed financing and the first such project to receive financing from ICBC, China. The company is committed to supply clean energy to the national grid through the National Transmission and Dispatch Company for 20 years.

Contribution in AHCL's P&L

Consolidated

	FY'23: 5,673million
Operating revenue	+41.83%
	FY'22: 4,000 million
	FY'23: 2,464 million
Profit after tax	+25.97%
	FY'22: 1,956 million

Black Gold Power Limited (BGPL)

BGPL has been incorporated with the objective to set up a 660MW mine mouth coal power plant at Thar Coal Block II, Phase IV, Sindh. The company has obtained coal allocation for 660 MW from Sindh Engro Coal Mining Company. The Company started feasibility for commercial viability and bankability of the project by engaging internationally renowned consultants. However, due to change in circumstances more particularly energy needs of the Country and consequently existing Power Policy, the management decided to hold the feasibility study and to reconsider this project in future once Power Policy attains stability.

Contribution in AHCL's P&L

Standalone

Operating revenue	FY'23: Nil
FY'22: Nil

Contribution in AHCL's P&L

Consolidated

	FY'23: 0.03 million
Operating revenue	+38.71%
	FY'22: 0.02 million
	FY'23: (0.12)million
Loss after tax	-71.18%
	FY'22: (0.4) million