Fauji Fertilizer Bin Qasim : Corporate Briefing Session of Fauji Fertilizer Bin Qasim Limited

Analyst Briefing

July 2023

DISCLOSURE

All forward - looking statements are management's present expectations

of future events and are subject to a number of factors and uncertainties

that could cause actual results to differ materially from those described in

the forward - looking statements.

Forward - looking statements should not be relied upon for making investment or other decisions as the statements speak only as of the date they were made

2

INDEX

• Economic Highlights
• Fertilizer Industry
• Business Highlights & Financial Performance
• Way Forward
• Q&A

Economic Highlights

Macroeconomic conditions continued to worsen in Q2….. characterized by

the highest policy rate on record, uncontrollable inflation, declining indigenous gas and a decline in international prices of DAP.

INFLATION & POLICY RATE

• Inflation stands at 29% in June 2023 (SPLY 24%)
• SBP policy rate increased to 22% in June 2023 (SPLY 13.75%)

RUPEE

DEVALUATION

• Unstable exchange rate;
• Devaluation by 49% (Avg Jan - June) (PKR 278 vs PKR 186 in SPLY) resulting in Exchange Losses.

Gas Supply

• Gas supply Jan - June 2023 33% lower than SPLY.
• Gas curtailment in Jan
  - June 23 reached a high of 43% (SPLY 14%) of the allocation.

GOP Policies

• Non-Incentivizationof DAP usage.
• GST cost of manufacturing DAP (Though resolved in Finance Bill 2023-24)