Company Profile

Incorporated in 1993, Lucky Cement Limited stands as the flagship company of Yunus Brothers Group
(YBG)

Lucky Cement is one of the largest producers and leading exporters of quality cement in Pakistan and is
listed on the Pakistan Stock Exchange (PSX). The company has also issued Global Depository Receipts
(GDRs), listed and traded on the Professional Securities Market of the London Stock Exchange.

Over the years, the Company has grown substantially and is expanding its business operations with
production facilities at strategic locations in Karachi to cater to the Southern regions and Pezu, Khyber
Pakhtunkhwa to furnish the Northern areas of the country. Lucky Cement is Pakistan’s first company to
export sizeable quantities of loose cement being the only cement manufacturer to have its own loading
and storage terminal at Karachi Port.

Lucky Cement strives to remain an efficient and low cost producer and is one of the pioneers to introduce
and install Waste Heat Recovery and Refuse Derived Fuel (RDF) and Tyre Derived Fuel (TDF) Plants in
Pakistan. It also has self-sufficient Captive power generation facility of 180 MW and supplies
additionally generated electricity to support the National grid. Lucky Cement owns a fleet of Bulkers &
Trailers, which gives added advantage in terms of logistics and efficient deliveries to all types of
customers spread across the length and breadth of the country.

Our Products
Lucky Cement greatly emphasizes in manufacturing high quality product through stringent quality control
techniques and computerized control systems. Quality of the cement has been tested and proven up to the
specifications mentioned in Pakistan, British, Indian, Kenyan, Nigerian, South African and Sri Lankan
Standards.
Our products include Ordinary Portland Cement (OPC), Sulphate Resistant Cement (SRC) and Clinker.

Brands
Lucky Cement produces cement to suit every need. Variations of Ordinary Portland Cement (OPC) and
Sulphate Resistant Cement (SRC) are manufactured to meet the needs of a wide range of customers. The
following cement brands are available domestically.

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Mission
Ensure sustainable leadership position in Pakistan & increase global footprint in the cement sector.
Identify & capitalize on diversification opportunities to maximize shareholders’ value while remaining
socially responsive in all spheres of operations.

Vision
We strive to be a growth oriented company by identifying opportunities, making the right investments,
producing high quality cement and using innovative technology to achieve cost competitiveness and
customer satisfaction. We endeavor to harness the best human resources and providing them a level
playing field in achieving long term goals.

Sustainability
Implementation of sustainability into its core business operations has always been one of the major aims
of Lucky Cement. The company has been successful in establishing a leadership position in the market by
achieving this target in its strategic orientations..All aspects of sustainability including efficient
operational procedures, effective internal controls, ethical behavior, and energy conservation are integral
part of our business model. Lucky Cement has come to a point where it has become imperative to work
outside its comfort zone.

1): Corporate social Responsibilities

Implementation of sustainability into its core business operations has always been one of the
major aims of Lucky Cement. The company has been successful in establishing a leadership
position in the market by achieving this target in its strategic orientations.

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 i) Waste Heat Recovery Plant – acquisition of green technology!
In any Industrial process heat is wasted as a result. If not used efficiently, waste heat is released
into the atmosphere. A Waste heat recovery (WHR) plant utilizes residual heat, consuming no
fuel, and lowering dust emissions and temperature of discharged flue gas thus having a positive
impact on the environment.
Lucky Cement has five Waste Heat Recovery Plants: Three in Pezu and two in Karachi. The
WHR plant at Pezu are on line AB and CD with a capacity of 10MW and 15MW respectively.
The third is used for Power Generation with a capacity of 6MW. Karachi has a WHR unit on line
EFG with a capacity of 15MW and a power generation plant with a capacity of 6MW.
With these technological developments in place, Lucky Cement has earned precious
carbon credits as per the Kyoto Protocol, under the United Nations Clean Development
Mechanism for its environment friendly operations and green projects. It is also one of the few
companies in Pakistan to report its sustainability performance in shape of a sustainability report,
and was the first company in Pakistan to receive an A+ ranking on its sustainability report by the
Global Reporting Initiative (GRI) Netherlands.

ii) Reduction in CO2 Emissions – further sustainability initiatives!

Implementation of sustainability into its core business operations has always been one of the
major aims of Lucky Cement. The company has been successful in establishing a leadership
position in the market by completely achieving this target in its strategic orientations.
Lucky cement is equipped with high efficient bag houses to control various pollutants that are
generated in cement manufacturing process . Recently, latest Gasmet CEM- System has been
installed on a new line H for continuous emissions monitoring. PM, NOx, Sox and CO are
monitored through this system.
Lucky Cement is the pioneer of bringing evolution in corporate social responsibility via
the implementation of the Dual-Fuel Conversion Project, which has helped in the conversion of
energy generation from furnace oil to environment-friendly alternative sources. The successful
implementation of this project has enabled Lucky Cement to reduce emission of CO2 by 29,000
metric tons per annum.

2): Health, Safety And Environment

Lucky Cement is committed to cultivate an environment which ensures HSE embedded at its
core. By fortifying our HSE goals with the pillars of perpetual progress, we are in pursuit of a
100% safe & secure workplace for our employees & all stakeholders engaged in our business
operations.
Lucky Cement efficiently implements its HSE policies & procedures mitigating the accidental
rate at its vicinities and reducing the risks of injury or health-hazards at the workplace. Lucky
Cement also fosters a tradition of training and capacity-building of its employees with the best
procedures and workshops. We envision a hazard-free setting and frequently invest in various

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tools & techniques to ensure that our employees are equipped with contemporary safety skills in
their daily operations.

i) Occupational Health And Safety

Lucky Cement has taken safety measures according to the differences in the nature of the work
environment at our Plants and Corporate Offices. At both the Plants, there is a dedicated HSE
department which ensures necessary compliance with all health and safety related matters. The
Operations teams at all locations fully collaborate in implementation of OH&S policies &
procedures.

ii) Fire Fighting and Mock Drills

Safety of our employees lies at the core of our operational frameworks. At Lucky Cement, we
have made considerable efforts to equip our employees with fire- fighting skills to enable them
to handle unforeseen emergencies. Skilled instructors at our Plants and Head Office conduct
practical demonstrations along with theoretical explanations bi-annually, so that our employees
get the knowledge and confidence required to cope with such situations.

iii) Environmental Compliance and Activities

Being an ISO 14001 certified organization, Lucky Cement is fully aware of its obligations
towards protection of the environment & strives to achieve legal compliance. All of our process
emissions are tested by external EPA approved laboratories and results are openly shared with
EPA on a monthly basis. Throughout the year all legal parameters remained within NEQS limits
due to use of efficient technology and stringent process control. Apart from legal obligations,
Lucky Cement goes the extra mile & focusses on environmental friendly activities such as trees
plantation within factory premises and continuous sharing of environmental impact reducing
ideas and tips with employees.

iv) Consumer Protection Measure

In compliance with EN 197-II standards, a Conformity mark is imprinted on the packaging
material of cement sold in the European Union markets. This informs the customers about
certificate of consistency of the performance of the product and the safety measures to be taken
such as suitable safety clothing, dust masks, etc. Along with this, Lucky Cement also provides a
Safety Data Sheet to its consumers and users to ensure that they have all the necessary
information about the product usage and any additional safety precautions that need to be taken.

3): Corporate Social Responsibility

Lucky Cement takes pride in its employees and wants to develop a corporate culture that
promotes social responsibility and welfare. At Lucky Cement, employees are a key component

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of its CSR initiatives and their participation enhances what the company contributes to its
communities.

i) Education
Lucky Cement remains committed towards value-creation for the society in which it operates.
Therefore, as practiced in the past, it has continued its services in the education sector by
offering merit-based scholarships to deserving students in leading universities of the country.
The company remains faithful to the cause of women empowerment in the country and continued
its support for the two leading Government girls’ schools in Karachi in collaboration with
Zindagi Trust. With the primary focus of social intervention in the development of women
education in the Country, Lucky Cement hopes that its support for these schools can transform
them into model educational institutions for the girls of Pakistan. On the other hand, support for
The Hub School’s maintenance also continues as well.

ii) Health and Aziz Tabba Foundation

Ensuing its commitment of supporting quality health care projects in the country, Lucky Cement
continued to extend its support to Aziz Tabba Foundation, which is one of the most prominent
philanthropic institutions in Pakistan. Support was provided for the running of its two premium
health care institutes in the country, namely Tabba Heart Institute and Tabba Kidney Institute.
Furthermore, Lucky Cement also extended its support for the treatment of blind children through
Pakistan Welfare Association of the Blind.

iii) Environment
In its efforts to sustain the environment, Lucky Cement responded appropriately to curtail carbon
emissions into the atmosphere. The company has a comprehensive air quality measurement
program that enables it to identify the limits of pollution parameters in the ambient air in and
around the Lucky Cement plant. All of the parameters monitored are well below their respective
limits specified in the National Environmental Quality Standards (NEQS). Similarly, the levels
of emissions from stacks for particulate matter, sulphur dioxides, oxides of nitrogen, carbon
monoxide and carbon dioxide are well below their respective limits specified in the NEQs.

iv) Employee Volunteerism

In addition to this, Lucky Cement actively engaged its employees in community service at SOS
Children’s Village. The employees interacted with the children of various age groups, and your
Company contributed generously towards the phenomenal work being done by the institution.
Further support was also extended towards Special Olympics Pakistan to assist them in
organizing healthy athletic activities in the country. Support was also given to various other
social improvement initiatives in the country and provided valuable assistance to non-
governmental organizations as well.

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In efforts to ignite the spirit of volunteerism, Lucky Cement also celebrated Employee Volunteer
Day with the objective of awakening the fervor for social responsibility among the employees by
improving the educational facilities and renovating the infrastructure of Govt. Girls Primary
School located in Korangi, Karachi. Lucky Cement also donated cement for the construction of a
new classroom within the premises of the Govt. Girls Primary School and Lucky Cement’s
employees participated wholeheartedly in its decoration.

Others
During the holy month of Ramadan, Lucky Cement highlighted the true spirit of charity by
providing for basic food needs for many deserving families. Furthermore, it also generously
contributed towards various causes to support Eid related festivities. Furthermore, it also
continues to donate towards the cause of community development by supporting CPLC – an
institution responsible for the safety and security of citizens in Sindh.

Environment
Conservation

Health, Safety
Sustainability Initiatives

Women
Empowerment

Organization hierarchy
Management Team
Mr. Muhammad Ali Tabba : Chief Executive Officer
Mr. Noman Hasan : Executive Director
Mr. Amin Ganny : Chief Operating Officer

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Mr. Irfan Chawala : Director Finance & Chief Financial Officer
Mr. Adnan Ahmed : Chief Operating Officer - Interternational Businesses
Mr. Faisal Mahmood : Company Secretary

Board Committees

Audit Committee
Tariq Iqbal Khan – Chairman

Human Resource and Remuneration Committee

Mariam Tabba Khan – Chairman

Budget Committee
Mr. Muhammad Sohail Tabba – Chairman

Shares Transfer Committee

Mr. Jawed Yunus Tabba – Chairman

Financial Analysis 2018

Lucky Cement records consolidated earnings of PKR 14.82 billion for the fiscal year ended June 30, 2018

31thJuly 2018, Karachi On a consolidated basis, Lucky Cement Limited reported net profit after tax of
PKR 14.82 billion after taking out PKR 1.35 billion attributable to non-controlling interests for the
financial year ended June 30, 2018, which translates into earnings per share (EPS) of PKR 45.83 / share
as compared to PKR 50.18 / share reported last year. The Board of Directors proposed a final cash
dividend of PKR 8.00 per share subject to approval of shareholders in the upcoming Annual General
Meeting scheduled to be held on September 28, 2018. This proposed final cash dividend is in addition to
the interim cash dividend of PKR 5.00 per share, as previously recommended by the Board of Directors
for the financial year ended June 30, 2018. On a consolidated basis, the Company achieved gross turnover
of PKR 124.68 billion which is 13.6% higher as compared to last year’s turnover of PKR 109.80 billion.
With regards to the Company’s standalone performance, the gross sales revenue of the Company
increased by 9.4% to PKR 67.38 billion compared to PKR 61.60 billion reported last year. The increase in
revenue was mainly due to higher volumes and increase in Federal Excise Duty and Sales Tax.
Furthermore, Lucky Cement recorded net profit after tax of PKR 12.20 billion which is 10.9% lower as
compared to last year. Similarly, the standalone EPS of the Company is PKR 37.72 / share which is
10.9% lower as compared to last year’s reported EPS of PKR 42.34 / share.

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The local cement sales volume of the Company during the fiscal year registered a growth of 14.8% (North
18.1% and South 11.0%) to reach 6.63 million tons compared to 5.77 million tons reported last year,
whereas, local clinker sales volumes declined by 80.1% to 0.06 million tons during the current financial
year as compared to 0.30 million tons last year, resulting in the overall local sales growth of 10.2% to
reach 6.69 million tons during the current financial year compared to 6.07 million tons last year; while
export sales volume increased by 4.6% to 1.13 million tons compared to 1.08 million tons reported last
year.

Lucky Cement also shared progress on its brownfield expansion for cement production of 2.6 million tons
per annum at its Pezu Plant and the greenfield investment project for producing 1.2 million tons of clinker
at Samawah, Iraq. In addition, the Company also reported progress on its investment projects of 1 X 660
MW supercritical coal based power project at Port Qasim and automobile manufacturing plant under
license from Kia Motors Corporation.

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