Dated: April 29, 2013
This presentation is only for discussion
purposes and in no way be used for
commercial dealing. The numbers used in this
document are assumed/dummy numbers.
Admore Gas (Private) Limited
A licensed oil marketing company
Case Study
Investment Banking Team
Shajar Capital
Private & Confidential - For discussion purposes only
0
The OMC
Admore retails refined petroleum products and
lubricants across individual and commercial market
segments operational since 2001
KPK
36 Outlets
Value proposition
Punjab
254 Outlets
Storage facility of over 8500 MT
434 operational outlets
Baluchistan
3 Outlets
200 pumps in development process
Strong supply chain
Sindh
89 Outlets
Strong footprint in Punjab and AJK
Private & Confidential - For discussion purposes only
1
Market Players vs. Admore
Number of Pumps
4,000
One of the lowest
Sale/Pump Ratio
3,760
3,000
2,000
851
1,000
530
434
362
Admore
APL
HASCOL
0.2%
8%
3%
238
0
Company
Market Share
PSO
65%
Shell
12%
Private & Confidential - For discussion purposes only
Caltex
5%
2
Year 2012: At a glance
Equity Capital
Working Capital
Financing Issues
HSD and PMG
Furnace Oil
Refineries
Industries
Furnace Oil and Lubes
HSD, PMG and Lubes
Imports
-
Issues:
Communication
Management
Debt Repayment
Cash cycle
Employees
Private & Confidential - For discussion purposes only
Retail Outlets
-
Resolution:
Monitoring and Control
Reactivate departments and
function
Debt restructuring
Cash flow management
Incentive based pay
3
Year 2012: Change of Management
Shajar Group – Acquired major stake
Financial
Services
Energy
Healthcare
Education
Packaging
Oil &
Gas
Shajar
Capital
Shajar
Energy
Dar ul Shifa
Trust
Liaqat
Medical &
Dental College
ATCO Trading
Admore
Gas
Invest One
Consultancy
Dar ul Sehat
Hospital
Trading
Upstream
Brokerage and
Investment
Advisory
Trading
Energy
Private & Confidential - For discussion purposes only
4
Turnaround Process
Turnaround
Strategy
General
Initiatives
• New management
team
• Fresh capital for
cash flows support
Re-composed
Board
• Nominated three
directors on the
board
Business
Development
• Inducted ExManaging Director
of PSO
Supply Line
• Restoration of
supplies
• Worked out
restructuring with
banks
The restructuring process and turnaround may take 2-3 years.
Communication
Remedial
Initiatives
• Re-establishment
of linkage through
better monitoring
and technology
Private & Confidential - For discussion purposes only
Management
• Re-activated the
sales, marketing
and operations
function
Reduced Finance
Cost
• Restructuring of
loans to revive
relationships with
Financial
Institutions
Cash Cycle
• Effective cash flow
management
• Maintenance of
Inventory
5
How to capitalize on this turnaround?
UPSIDE POTENTIAL
Private & Confidential - For discussion purposes only
6
Listing or Private Placement
Sales
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
PMG
50,005,836
311,586,160
620,679,484
617,538,963
707,538,963
827,538,963
947,538,963
1,007,538,963
1,067,538,963
HSD
75,008,753
467,379,240
931,019,226
823,385,284
943,385,284
1,103,385,284
1,263,385,284
1,343,385,284
1,423,385,284
SKO
-
-
-
102,923,161
117,923,161
137,923,161
157,923,161
167,923,161
177,923,161
HSFO
-
-
-
411,692,642
471,692,642
551,692,642
631,692,642
671,692,642
711,692,642
Lubes & Allied
-
-
-
102,923,161
117,923,161
137,923,161
157,923,161
167,923,161
177,923,161
125,014,589
778,965,400
1,551,698,710
2,058,463,210
2,358,463,210
2,758,463,210
3,158,463,210
3,358,463,210
3,558,463,210
Total
Share Price
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
Revenue Multiple of 0.03 times
17
33
44
51
59
68
72
76
EBITDA Multiple of 1.3 times
11
27
33
47
57
64
71
74
Potential IPO
Exit Year 3
Turnaround
IPO Exit
Year 5
IPO Exit
Year 8
IPO Preparation
Private & Confidential - For discussion purposes only
7
This presentation is only for discussion purposes and in no way be used for
commercial dealing. The numbers used in this document are
assumed/dummy numbers.
THANKS
Private & Confidential - For discussion purposes only
8