The document provides a financial and business performance summary for Engro Corporation and its subsidiaries for the first quarter of 2011. Key highlights include: - Consolidated revenue increased 27% to Rs. 21.8 billion driven by growth across all business segments. - Consolidated profit increased 9% to Rs. 2.05 billion, with gains in the fertilizer, foods, and power generation businesses offsetting losses in petrochemicals. - Fertilizer revenue grew driven by higher urea prices due to gas curtailment, though production declined 10% due to gas issues. Profits grew 74% on price increases. - Foods revenue and profits increased 36% and over 70

1. Security Analyst Briefing
YTD March - 2011

2. Financial Highlights
Revenue PAT
Rs. Million YTD March YTD March Rs. Million YTD March YTD March
2011 2010 2011 2010
Engro Fertilizers 5,882 4,620 Engro Fertilizers 1,397 773
Engro Foods 6,431 4,741 Engro Foods 117 (15)
Engro Polymer 4,124 3,284 Engro Polymer (59) (154)
Engro Powergen 1,844 107 Engro Powergen 345 47
Engro Eximp 3,173 3,768 Engro Eximp 164 897
Engro Vopak 494 532 Engro Vopak 239 265
AVANCEON 370 340 AVANCEON (9) (64)
Engro Corporation 21,848 16,859 Engro Corporation 2,054 1,889
(Consolidated*) (Consolidated*)
* Engro Share
Security Analyst Briefing
YTD March - 2011

3. Fertilizer Business
Security Analyst Briefing
1st Quarter - 2011

4. Urea Market Environment
Market size for urea, during the 1Q 2011 was 1.2 million tons, a decline of 14% over the same
period last year (1.4 million tons). Major reason for the decline was shortage of product due to
gas curtailment.
Domestic production estimated at 1.1 million tons was 8% lower as compared to 1.2 million tons
during the same period last year on account of gas curtailment as well as extended winter gas
load shedding.
Average selling price of domestic Urea during
1Q 2011 was Rs. 999/bag (Excluding impact of
Total Benefit to Farmer - Rs. 20bn
GST), while average landed cost of imported
Govt Contribution
Urea was Rs. 1,940/bag (C&F USD 400/ton) 3 (Differential of Feed and
Fuel gas prices, net of taxes
paid)
By maintaining domestic Urea prices
significantly lower than international prices, Fertilizer producers'
contribution
the industry gave benefit of Rs. 17 billion in 1Q
17
2011 to the farmer fraternity
Security Analyst Briefing
YTD March - 2011

5. Phosphates Market Environment
Phosphates demand in Pakistan declined to 174kT from 216 kT in 1Q,
2010
- Decline is due to higher international prices (USD 600/Met 1Q, 2011 Vs. USD
365/Met in 1Q, 2010)
Total Phosphate imports during 1Q 2011 were 49kT vs. 120kT in 2010
DAP price (C&F Karachi) during March was USD 680/ton (North
Africa)
Security Analyst Briefing
YTD March - 2011

6. Industry Demand and Market Shares
Urea Market Share
2%
10%
4%
20% 50%
14%
FFC and FFBL NFML Engro
DH Pak Arab Agri Tech
Total Market (1)
Sales Domestic Supply
Urea 1.2 MT 1.1 MT
Phosphates 174 kT 118 kT
(1) Urea and Phosphates numbers are estimates and final Security Analyst Briefing
numbers will be confirmed once communicated by NFDC. YTD March - 2011

7. Business Highlights
Urea:
Revenue from urea sales was Rs. 4.5 billion vs. Rs. 3.8 billion last year – an increase of 18%
- Increase in revenue is attributable to price increase because of gas curtailment and load management
Due to gas curtailment urea production was 232kT vs. 257kT achieved in 1Q2010 – a decrease of 10%
As a result of lower industry in 1Q 2011, Engro’s urea market share improved to 21% from 18% last year
PAT from urea was Rs. 1,245 million vs. Rs. 725 million in 1Q2010 – impact of price increase due to
load management
Zarkhez
Revenue from Zarkhez was Rs. 1,325 million vs. Rs. 780 million last year – due to higher raw material
prices
Against production of 28kT (26kT in 1Q10) sales were 29 kT vs. 21 kT during the same period last
year.
⁻ Increase is attributable to focused marketing of the product as well as demand substitution due
to rising phosphate prices(shortage of phosphates in face of rising demand).
PAT was Rs. 144mn vs. Rs. 75mn earned in 1Q2010 – mainly due to inventory gains and higher
volumes
Security Analyst Briefing
YTD March - 2011

8. Business Highlights – cont.
Purchased Products (Phosphates)
Revenue from purchased products was Rs. 3 billion as compared to Rs. 3.6 billion last
year primarily due to lower volumes
Engro imported 49kT (100% import share) of Phosphates during 1Q 2011 vs. 120 kT in 1Q,
2010
Phosphates sales were 49 kT in 1Q 2011 (27% market share) vs. 78 kT in 1Q, 2010
PAT was Rs. 210 million as compared to Rs. 923 million earned in 1Q, 2010 - due to
windfall trading gains in 2010
Outlook
Gas supply scenario remains volatile with fertilizer plants on Sui networks subjected to
unprecedented gas load shedding in winter months.
Shortfall of 700 kT is expected in Urea supply – Cost to GoP, in form of subsidy, will be
~Rs 10 billion
Security Analyst Briefing
YTD March - 2011

9. Fertilizer Expansion Project
en en 1.3
Due to the extended outage and intermittent gas supply, commissioning activity at the
new fertilizer plant was hampered and delayed
Engro has filed a case, in the Honorable High Court of Sindh, against the suspension of
gas supply
Court has restrained SNGPL from disconnecting the current supply of 80 MMSCFD of gas
and directed that efforts to be made to provide the maximum amount of gas (100
MMSCFD) as committed
The new plant is expected to achieve commercial production in 2nd quarter, 2011.
Security Analyst Briefing
YTD March - 2011

10. Foods Business
Security Analyst Briefing
1st Quarter - 2011

11. Business Highlights
Foods business revenue was Rs. 6.4 billion vs. Rs. 4.7 billion last year – an increase of 36%
Foods posted a Profit of Rs 117 million as opposed to a loss of Rs. (15) million in the
corresponding period last year – more than 70% growth in dairy business profitability i.e.
Rs. 270 million vs. Rs. 157 million for the corresponding period last year
UHT sales were up by 19% vs. the same period in 2010, driven largely by the growth of
Tarang
- Olpers volumes were 375 klpd vs. 362 klpd last year – an increase of 4%
- Tarang volumes were 567 klpd vs. 424 klpd last year – an increase of 34%
Foods retained market leadership in UHT with a market share of 37%
Omorè has achieved volume growth of 72% YoY with total sales of 3,124 klitres vs. 1,821
klitres in 1Q 2010 – Revenue from ice cream was Rs. 438 million vs. Rs. 223 million last year.
Dairy farm produced 21 klitres per day in 1st quarter 2011. Revenue earned was Rs. 90
million vs. Rs. 73 million in 1Q 2010.
Security Analyst Briefing
YTD March - 2011

12. Business Highlights – cont.
Launches and geographical expansions:
⁻ Omore was launched in Karachi, continuing its geographical expansion towards
achieving a higher market share.
⁻ Olfrute Juices & Nectars were re-launched during the period, with new packaging and
additional flavors.
⁻ New flavors of Owsum milk were also added to the portfolio during 1Q 2011.
⁻ Olpers Lite was launched in 200ml and 1000ml SKUs
Rice
During the 1st quarter, 2011, Rice business revenues grew by 58% to Rs. 112m vs. Rs. 71m in
the corresponding period last year
Exported 1.5 kT of rice to premium customers in Europe and Middle East during the
quarter, as compared to 1 kT in the same period last year - Additional commitments of 8
kT sales have also been made
The rice processing facility, owned and operated by Engro Foods Supply Chain, will be
fully operational during the second quarter of the year.
Security Analyst Briefing
YTD March - 2011

13. Business Highlights – cont.
Al-Safa Acquisition:
During January 2011, Engro Corporation signed an agreement with Al-Safa Halal to
purchase its halal food business in North America
The business will be managed by Engro Foods and shares will be transferred to Engro
Foods once regulatory approval is received.
Outlook
Sustained growth in the foods business is expected
However, Revised General Sales Tax (RGST) on milk will remain a key risk to dairy segment
outlook, although RGST is not expected to have any impact on rice, ice cream and juices
segments.
Security Analyst Briefing
YTD March - 2011

14. Petrochemicals Business
Security Analyst Briefing
1st Quarter - 2011

15. Business Highlights
Revenue for the quarter was Rs. 4.1 billion, showing PVC - kT
29
an increase of 25% over Rs. 3.3 billion earned in the
24
corresponding period last year. 22
20
1Q, 2011
Growth is attributable to increased sales volumes and 1Q, 2010
higher product prices as compared to the same
period last year.
Sales Production
Import of PVC resin in the country declined during
the quarter as compared to 1Q 2010 mainly because Caustic - kT
of increased supplies by the company. 22
20 19
17
VCM production was 14 kT as compared to 2 kT
1Q, 2011
during the corresponding period last year
1Q, 2010
Sales Production
Security Analyst Briefing
YTD March - 2011

16. Business Highlights – cont.
Polymer incurred a loss of Rs. (59) million compared to a loss of Rs. (154) million during
the same period last year - The loss was primarily due to decreased production as a
result of plant turnaround.
Outlook
PVC prices are expected to remain high with strong domestic demand from the
agricultural and construction sector as well as exports to Afghanistan.
The business’s margins are expected to improve as the integrated facility continues
smooth operations
Security Analyst Briefing
YTD March - 2011

17. Energy and Power Business
Security Analyst Briefing
1st Quarter - 2011

18. Business Highlights
Qadirpur
Total turnover for the company was Rs. 1,844 million vs. Rs. 107 million in 1Q, 2010
Qadirpur dispatched 99.6% of its installed capacity(217 MW) to the national grid during
the first quarter of 2011
The plant underwent its first planned outage, which was safely completed as scheduled.
Engro Powergen Qadirpur posted a profit of Rs. 349 million, as compared to a loss of Rs.
(49) million in 1Q, 2010.
Outlook
Business will continue to focus on performance improvement at its power plant in
Qadirpur to ensure reliability and availability to the national grid.
Continue progress on Thar coal project
Security Analyst Briefing
YTD March - 2011

19. Chemical Storage & Terminal Business
Security Analyst Briefing
1st Quarter - 2011

20. Business Highlights
Engro Vopak Terminal Limited had smooth operations in the quarter - Total
Revenue was Rs. 494 million vs. Rs. 532 million in 1Q, 2010.
Volumes during the first quarter of this year were 225 MT vs. 259 MT in
1Q2010 - lower volumes of phosphoric acid and LPG
Vopak posted a profit of Rs 239 million, as compared to a profit of Rs. 264
million during the same period last year.
Hearing on CCP show cause notice was held on April 14, 2011
Security Analyst Briefing
YTD March - 2011

21. Automation Business
Security Analyst Briefing
1st Quarter - 2011

22. Business Highlights
International Execution –
During 1Q2011, company’s revenue increased by No of Hours
9% to Rs. 370 million in from Rs. 340 million in 3,431
1Q 2010
2,713
16% 11%
Outsourcing engine is delivering as per the
expectations – outsourced hours increased by
26%
The loss for the period was Rs (9)million as 1Q, 2011 1Q, 2010
compared to the loss of Rs. (64) million during
the corresponding period last year
Security Analyst Briefing
YTD March - 2011

23. Q&A
Thank You
Security Analyst Briefing
1st Quarter - 2011