A Lucky ~cement

6-A, M_ Ali Housing S9Ciety, A. A~l Hs,shim Tabba.Srreet, Karacll j. 75350 - Paklslan.

Phcrne ; lJAN 11:1 - 786-·555

. (+9Nl) 4537390,4522554,4520175,4382949

Fa~ (+92·21) 4534302

E ·mail: inlo@lucky-oement.com Website: WlWI_1 ucky-6ement. com

Concrete Progress

LCD/SDIANNO/2009-101

The General Mahager Karachi Stock Exchange (Guarantee) Limited Karachi

The Deputy Chief Securities & Exchange Commission of Pakistan Islamabad

Dear Sir(s)

The Secretary

Lahore Stock Exchange (Guarantee) Limited Lahore

The JOint Registrar

of Companies, Company Registration Office Peshawar

AugustS, 2009

The Managing Director Islamabad Stock Exchange (Guarantee) Limited Islamabad

The London Stock Exchange 10 Paternoster

Square,

London

FINANCIAL RESULTS FOR THE YEAR ENDED - JUNE 30, 2009

We have to inform you that the Board of Directors of the Company in their Meeting held on Wednesday., August 5, 2009 at 11 :30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

(I)

Gash Dividend

(ii)

Bonus Shares

(iii)

Right Shares

(iv)

40%

Nil

Nil

Any other Entitlement I Corporate Action

Nil

(v)

Any other Price-Sensitive information

Nil

The financial results of the Company consisting' of balance sheet, profit and loss account and directors' report are annexed.

Contd ... P/2_

A Ptotecl of YlJnus Broth ... Group

Lucky Cement Limit.ed Head Office: 6-A, M. Ali Housing Society, Karachi-75350. Pakistan. UAN: i02l) 111·1Iij·555, Fax: i1!21j4534302 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, JamiaAshrafia, Main Ferozpur Road Lahore. fel & UAN : (+92.42) 111·786-555 Fax: (+92-42) 7530435 Plant Siles' Pezu Pla~I:Pezu District, La'kki M~rNa!. N.w.F.P. fel.: (+~2,969) 580123, 58~124, 580125. 580126 UAN: (+92-969) 111-786-555 Fax: (+92-969)_ 580122

• Karach I Plant: 58 Km M ilestone Super Highway. Karachl. fele phones: (+92-21) 6809936 Fax: (+92·21) 5206421

~LUCkY • Cement

&-A, M. All How;l~g Society, A. Aztz Hashim Tabba Street, Karachi-75350 - Paklstan,

Phone : UAN I I I - 786 - 555

, (+92·21) 4531290,4522554,4530175,4382949 Fax: (+92"21) 453 4302

E-mail 'info@fucky-cernentcom

Webs1te" WW'W Jucky-ce(l1ent.oom

Concrete Progress

P/2

The 16th Annual General Meeting of the Company will be held on Monday, October 26" 2009 at 3:00 p.m., at the registered office of the Company situated at factory premises Pezu, District Lakki Ma rwat, N. W, F . P .

The Share Transfer Books of the Company will remain closed from Saturday, October 17" 2009 to Monday, October 26, 2009 (both days inclusive). Transfers received at our Share Registrar/TransferAgent MIs. Central Depository Company of Pakistan Limited CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Katachi-74400 at the close of business on Friday, October 16, 2009 will be treated in time for the purpose of above entitlement to the tra nsferees.

~MENT LIMITED

o ABID GANATRA Director Finance I

Company Secretary

o :\data\acoht2009Iannou·n c. doc.

mil ~ (I~1 :J ;tIl.: 1#1 ;~ti ,tIII):I:t1 ;II!) #(Ii I

A Project 01 \\Jnu.S Brolhers Group

Lucky Cement Limited Head omce: a-A. M. Ali Housing Society. Karachi-7535D. Pakistan. UAN: (Oli) 11l-l86-S55,Fax: (011) 4534302 C.entral Marketing Office: 2nd Floor, Al-Hassan Plaza, Jarnia Ashratia, Main Ferozpur Ro-ad Lahore, Tel & UAN : (+92-42) 111-786·555 Fax: (+92-42) 7530435 Plant Sites' Pezu Pla~t:Pezu District, Lskkl Marwat N.W.F.P; Tel.: (+92·969) 580123, 58~124, 58012.5, 580126 UAN: (+92·969) 111-786-555 Fax. (+92·969) 580122

, Karachi Plant: 58 Km Mil esto ne Super Hiqhway, Karachi: Telephones: (+92·21) 6809936 Fax: (+92-21) 5206421

~LUCkY ~cement

6·A, M. All He usl ng Society, A. Azlz Hashim T abba Street, Karachi- 75350 . P ;'k;islan.

Phone : UAN 111 ·786 ·555

~I"~~

Reubh!l'"lIi!d , ", Fax

[SO \rIHll :2000, E·'mafi Itdo@luck-y·eementcom

Webs~e . www.lucky·cemllnt.com

: (+92·21) 453 7390, 45225'54, 4530175.438 294B :1+9i·21) 4·53 4302

12'

Concrete Progress

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2009

2009

2008

(Rupees in '000 ~

Gross Sales

30,915,035

Less: Sales tax & excise duty Rebates and commission

4,368,490 216,141

4,584,,631

Net Sales Cost of sales

26,330,404 16,519,138

Gross profit

9,811,266

Distribution costs Administrative expenses

2,427,837 165,936

2,593,773

Operating profit

7,217,493

Finance costs

Other operating income Other charges

1,236,971 (23,255) 826,776

2,040,492

Profit before taxation

5,177,001

Taxation -current

-prior year

-deferred

156,744 4,216 419,492

580;452

Profit after taxation

4,596,549

Basic and diluted earnings per share

®u

14.21

20,819,749

3,740,926 120,944

3,861,870

16,957,879 12,600,706

4,357, t 73

1,155,054 [25,752

1,280,806

3,076,367

126,743 I (1,293) 644,388

769,838

2,306,529

85,394

(456,535)

(371, !4!)

2,677,670

(Rupees)

9.84

A Project of ""nus Brothers Gloup

A Project of YiJ111S Broft1ers Gloup

Lucky C.ementLimited Head Office: 6-A,M. Ali Housing Sociely,Karachi-75350. Pakislan. UAN: I02tl 111·1iG-555, Fax: 10211 45343D2 Central Marketing Office; 2nd FloOf, AI-Hassan Plaza, Jamia Ashratia, Main Ferozpur Road Lahore. Tel & UAN: (+92~42) 111-786,555 Fax: (+92·42) 7530435 Plant Sites' Pezu Pla~1: Pezu District, Lakki M~lWat. N.W.F.P. Tel.: (+~2-969) 580123, 58~124,580125, 580126 UAN: (+92·969) 111-786·555 Fax: (+92·969) 580122

. 'Karachi Plant: 58 Km Milestone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92·21) 5206421

A Lucky .cement

IfM, M. Aill-iousing Society. A. Am.l-iashlm Tabba Strael, Karachi· 75350 - Pakistan.

Phone : UAN 111-786 - 555

1+92-21) 453 7390. 452 2$4. 453 0175, 4382949 Fax: (+92·21) 453 43(12

E·maII . inlo@lucky-cemanLcom

Websi1e: 1'MW.luoky-cement.oom

Concrete Progress

BALANCE SHEET A A TJ· NE 30,. 2009 2009

A SETS

ON-C RRENT ASSETS Property. plant and equipment

Long tenn advance

Long term deposits

URRENT ASSETS

Stores and spares

tock-in-trade

rade debts - considered good oans and advances

Trade deposits and short term prepayments Other receivables

Tax refunds due from the government Taxation - net

Sales Tax refundable Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Share capital Reserves

NON- CURRENT LIABILITIES Long 'term finance

Long term deposits

Deferred liabilities

Deferred taxation

CURRENT LIABILITIES Trade and other payables Accrued mark-up

Short term borrowings

Current portion of long term finance

CONT GE ems AND COMMITMENTS TOT L E.QUITY AND LIABILITIES

(Rupees in 'OOO?

2008

30,476,872 55,373 2.175

30534,420

3,411,549 ,196,608 1267,248 168,876 9,761 59,2.51 538812 176584 40,162 1,049,091

25.881,375

2,175

25883,550

4.160,146 709,372 720,314 111 989 189,641 890,204 538_812 130.899 634,136 270,011

7,857,942

38,392,362 .

3,233,750 20,018.,222

23,251,972

4,300,000 28,589 234,633 1,478,.490

8,355,524

34,239,074

3,233,750 15,421,673 18,655,423

6,633,333 30,252 174,171 1,058,998

6,041,712

2,677,356 233,381 6187941

7,896,754

3,549,543 288.977 3,606,710 241~667

9.098.678

38,392.,362

7,686.897

34.239.074

wlli3

Lucky C:ement LimitedH,ead Office: 6-A. M. Ali Housing Society. Karachl-75350_Pakistan.lWt.(ll1ijm186-ii,Fa:£(U1].f534.'J02 CentraJ Marketing Office; 2nd Roor,A1-Hassan Plaza, JarniaAshrafia, Main Ferozpur Road lahore. Tel & UAN: (+92-42) 111-786-555 Fax: (+92-42) 7530435

P· lant S:I·e' s , Pezu Plant: Pew Oistric:l.,lakkiMarwal. NWF.P. Tel.: (792·969)580123, 580124. 580125,580126 UAN: (+92-969)111-786-555 Fax: (+92-969)550122 . .. LI • Karachi Planl: sa Km Mileslone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92+21) 5206421

Lucky Cement

B·A, M_ Ali Housing Society. A. Aziz Hashim Taboo Siraet, Kamchl-75350 - Pakistan.

Phone : UAN 111 - 786 - 555

. (+92·21) 453 7390, 4522554,4530175,4382949

Fax . (+92-21) 453 4302

E·mail : Info@lucky-cemei1!.com Website: www.lucky·cemenl.com

Concrete Progress

Directors' Report

The Directors of your Company have pleasure to present before you the annual report of the Company with audited financial statements for the year ended June 30, 2009.

Overview

The Pakistan cement industry concluded the financial year ended June 30, 2009 with an overall meager growth of 2% with total sales volume of 30.77 million tons against last year's sales volume of 30.2.86 million tons. The demand in the domestic market witnessed a dismal negative growth of 14% due to adverse economic, financial as well as law and order situation prevailed in the Country. On the export front, the industry witnessed a hefty growth of 47% with sales volume of 11.381 million tons against last year's sales volume of 7.716 million tons per annum. The shortfall in domestic sales was compensated by exports which ended with a proportion of 37% of the total sales of the industry.

By the grace of Almighty Allah, your Company managed a decent growth of 6.25% in overall sales volume during the year under review as compared to same period last year. The local sales witnessed a negative growth of 14% whereas exports registered a healthy growth of 29% during the year under review as compared to same period last year. The ratio of exports to total sales volume of your Company was 58% whereas the export market share of your Company was 30.18% during the year under review. The overall market share of your Company slightly improved from 18.35% last year to 19.18% this year despite of addition of new capacities by other peers.

By the grace of Almighty, we are pleased to report that the financial year under review was concluded as the best ever performing year in the history of your Company inspite of difficult business environment prevailed both in the domestic and export markets. Your Company was able to achieve following significant performance during the year under review:

» Record gross sales revenue of RS.30.915 billion which is 48% higher then last

year

» Record net sales revenue of Rs.26.330 billion which is 55% higher than last year » Record operating profit of Rs.7.240 billion which is 135% higher then last year

» Record after tax profits of Rs.4.596 billion with earnings per share of RS.14.21

Your Company was also able to complete following additional milestone projects which will pave a long way to further enhance the financial performance of your Company.

1 of 11

Btl) ~(I~1 :1 ;tl) i: 1#1 ;I'."Iij :tlll):II ~ ,t.1J):W II

Da

A ProIect or Yunus Bro1hers Gioup

A Project of 'runus Brothers Group

Lucky Cement Limited Head Office: &-A, M. Ali Housing Sociely. Karachi-75350. Pakistan. UAN: 10211 111·1B6-5S5,Fix: !021) 4534302 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, JamiaAshrafia. Main Ferozpur Road Lahore. Tel & UAN : (+92-42) 111-786-555 Fax: (+92-42) 7530435 Plant Sites' Pezu Plant: Pezu District, Lakki Marwat. N.w..f.P. Tel.: (+92-969) 580123,580124,580125,580126 UAN : (+92-969) 111-786.555 Fax: (+92-969) 580122

. Karachi Plant: 58 Km Milestone Super Hig hway, Ka rachi: Telephones: (+92-21) 6809936 Fax: (+92-21) 5206421

ALUCk.Y.· .. · ~cement

I)-A, M. All Hou5ing 50,lely, A. Azlz Hashim Tabb~ Str~et, Karachi- 7 5~50 . Pakisrnn.

Phone : I,J'AN 111 ,765, 55'5

: (~92.211453 7390, 452 2554. 453 0175, 4382949 Fax: (+92>21) 45~ 4302

E-mail: info@luoky.cemenl..:om

i)~

» Successful operation of 1.25 mtpa production capacity of Line "G' at Karachi Plant making! total capacity of your Company to 7.75 mtpa

» Successful conversion of Pezu Plant Captive power generation units to gas based power generation, first of its kindexperience in Pakistan for such huge capacity generators

Inauguration of first ever loose cement export terminal owned by your Company to enjoy a unique position for export of loose oement from the Country.

Concrete Progress

Business Performance,

Website: www.lucky-cemenlcom

(a) Production & Sales Volume Performance:

During the year under review, your Company achieved all time high volume of production and sales as enumerated in the tsbte below:

Pal1k;uIals 2009 2008 lncl"ease Ii1cJ(DecI
%
Clinker Production 5;610,,455 5.181.380 449',075 8.70%
Cemellt Production 5,115,860 5,248.668 407.192 8.90'10
;Dis patches
• Cement 5.,675,811 5.272.072 403,799 7.66%
·Glinker 227,768 264,114 (56,346) ·19.B3%
• Total Dispatches 5,903,639 5,556,188 341,.453 6.2~5% Year-wise Production and Sales

A comparative analysis of sales volume of the industry vis-a-vis your Company is as under:

8,344,850 4,850,392 3,494,458 72.04%
2,093,845 1,760,101 333,744 18.96%
10.438,695 6.610,493 3,82.8.202 57.91%
942.135 1.1'06,1'27 (163,992) -14.83%
r 11,380,830 7,716,620 , 3,664,210 47.43% I

30,774:,856 30,286,014 488,842 Particulars.

Local Sales

,Export Sales Cement

- Bagg.ed

- L.oose

SUb-Total

Clinker

Total :Export

Grand Total

Growth

1-14.07:°]

(3.175,369)

2 of 11

Lucky Cement Limited Head O.lI1ce: 6·A, M. Ali Housing Society. Kaf3chi· 75350. Paldslan. UAIt(U2!)t1I·7S6-555,F·u:tml453CG2 Central Marketing Office: ZIld Roor, AI·Hassan Plaza, JamiaAshrafia, Main Ferozpur Road Lahore. Tel & UAN : (+9242) 111·78&-555 Fax: (+92-4'2) 7530435

Plant SHes :~~~~~~I:~:t~iS~ ~a~ ~~r:~o~·:·~;~~: :j,~~y~~;~~~~~2i:O;~~~~:12t+~~~~fS:~~1167~s;o~9:i~iOO:~:~~

~LUCkY ~cement

~I"-'~

R., gls rct-ed ....

ISO 'roOl'~OOO '. _

KA.FtA.C!HI PUNT tt't

fl-A. M. Ali Hou.sing SOciety, A, Azit Hashim Tabbastreel, Karachi-15350 - Pakistan.

Phone . UAN llt ·786 - 555

: (t92-21) 4531290, 4522554, 453 {)175, 4362949 Fax: (+92·21) 453 4302

E ·mail ; ·i nfo@ I ucky-cernent. com Website' wwwJucky-cementcom

Concrete Progress

Jul.:o8 to ;.Iun,U9

Jul-Q7 to JUl1~08

(Ton~)

Growth

Tons

%

Local. Sales

I

2,~~~~iJ [5' _ 2,a89,7~61 [ . (42Q.44'5) !

'----~-----'

-R55% I

Export Sales

Cement

- Sagged

Total Export

1,232,193 622,230 609,963 98.03%
1,974,388 1,760.101 214,287 1,2_17%
3,206,561 2,382,331 824,250 34.60%
227,767 284,119 (56,352) -19.83%
r 2,666,450 ] 767,.8981

1 [ , ~,5~" 1~61 6.,2.5%,1
5.903,6~~.J 347,,(53 - Loose

Sub-Total

Clinker

Grand Total

The analysis of the market share of your Company is as under:

Jul-Q7 to
_Jun..{fS
12.73% ] [ 12.80% :
.~'"
;;.l%
"~%
~IS% --
120/0
.% -- ~-------
.4% --------------
0%
14.77% 12.83% 2'o:JO~ iJ~ . .z"o~.OJ 2'.(Ia"7~~
........ LCIt~
94.29% 100,00%

~0<7iJ;., I 36.04% 7,l)rio
24.18% 25_69%
( 34.55% I

19.18% I [ 18.35% ]
...
200'-05 2[>Oj--0Ii 200"-07 £aG1-.-ci~ 2(lo.EI-q.~
• Local Ohport Local Sales

Export Sales

Cement

Sub-Total

- Bagged'

- Loose

Clinker

Total Export

Grand Total

3 of 11

A Project or'r\Jr\lJs arotheISGIoup

A Project of'rurnJs IlroIhers GrollP

Lucky Cement Limited Head Office: 6~A •. M. AU HDusingSociely. Karachi~75350 . Pakistan. UAN: (02J) 111·7B6-M5, Fax: (021)4534302 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, Jamia Ashrafia, Main Ferozpur Road L.ahore. Tel & UAN : (+92-42) 111-786-555 Fax: (+92-42) 7530435. Plant Sites' Pezu Pla~t: Pezu District, Lakki M~rwa!. N'w.F.P. Tel. : (:~2-969) 580123, 58~124, 580125, 580i26 UAN : (+92-969) 111-786-555 Fax: (+92-969) 580122

.' Karachi Plant: 58 Km Milestone Super Highway. KarachI. Telephones: (+92-2.1) 6809936 Fax: (+92-21 )5206421

~LUCkY • Cement

6-1\, M, Ali Housing Society, A. Aliz Hashim Tabba Street,

I Karacl1i·75350 - Paklstan.

Phone : UAN 111 - 786 - 555

: (+92-21) 4537390, 4522554,4530175,438 2949

[s!j"fosJ~~2g00 Fax: (t92-21) 453 4302

E-mail: info@lucky-cemenl.com Website: www.lu0ky-ceinent.wm

Concrete Progress

,.,

g/IS

The overall comparative growth of the industry can be seen from the following graphs: 7'

C Export

(b) Financial Performance:

A comparison of the of key financial results of your Company for the year ended June 30, 2009 with the same period last year is as under:

Sales Revenue 26,330,404

2008 %
16,957,.879 55.27%
4.357,173 125,18%
3,076,367 134,61%
2,306,529 124.45%
2,677,670 71.66%
984 44.41% Gross Profit 9,811,266

Operating Profit 7,217,493

Profit Before Tax 5,177,001

Net Profit after tax 4,596,549

Earning Per Share 14.21

- Rupees ill Thousand EXcept EPS.

(i) Sales Performance

During the year under review, your Company achieved an overall net sales revenue growth of 55% as compared to same period last year. Increase in revenue was attributed due to both increases in volume by 6% and net retention by 46%. Your Company continued to focus more on exports because of strong establishment of its brand in various export markets with higher retention margins. The domestic sales revenue registered a hefty growth of 38% because of increase in prices of cement in the domestic market as compared to last year on the back drop of increase in cost of manufacturing.

4 of 11

SlI!!S~E!/lffl! G"<!SlP-rom ~3li1Y l'rofll!ofct~ fill'l<!11 Ea;~fll""'

franl Tilt after,ta;: Sw.a-

'!l1IJ~[I~1 =) ;tl) i: I =4;1'.fi ;t111):a:l1 tIll I :w I

U&

A Project 01 IIJrlUS Br~ GIOUP'"

A Ploject ofllJnus Brothers Gro""

Lucky Cement Limited Head Office: &-A. M .. AU HouslngSociely, Karachi-7S350. Pakistan. UAN: 1011) 111-7B6-5S5, Fal: 10211 4514302 Central Marketing Office :2nd Floor, AI-Hassan Plaza, JamiaAshrafia, Main Ferozpur Road Lahore, Tel & UAN : (+92-42) 111-786-555 Fax: (+92-42) 7530435 Plant Sites' Pezu Plant: Pezu District, Lakki Marwat. NW.F.P. Tel.: (+92-969) 580123,580124,580125,580126 UAN : (+92-969) 111-786·555 Fax: (+92-969) 580122

, Karachi Plant: 58 Km Milestone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92-21) 5206421

~LUCkY ~cement

6-A. M. Ali 'Housing Society, A. Azlz Hashim Tabba Street, Karachi-75350 - Pakistan.

Phone : UAN 111 - 786 - 555

. (+92·21) 4537390,45-22554,4530175,4382949 Fax: (+92-21) 453 4302

E-mail: info@!ucky·cement.cam

Website: www.lucky·cement.com

Concrete Progress

The export sales registered a growth of 70% because of both volume and better retention as compared to last year. The ratio of sales revenue from exports was 60% whereas the local sales accounted for 40% during the financial year under review. The average combined net retention prices per ton improved by 46% over the comparative period last year. The prices of cement in the international markets remained firmed however slight reduction was observed in last quarter. The prices in domestic market were stable throughout the year except for adjustment of Excise Duty benefit passed on to the consumer as a result of RS .. 200 per ton duty reduced through Finance Act 2009.

(ii) Cost of Sales

During the year under review, the cost of sales in terms of absolute value increased by 31 % whereas cost per ton of cement increased by 23% as compared to same period last year. The major cost component is the energy cost which constitutes 72.62% of the total cost of production. In line with the international oil prices, the prices of coal in the international market were reduced during the second half of the financial year under review and prevailed in the range of US$ 65 to US$ 85 per ton.

(iii) Gross Profit

Your Company achieved a gross profit rate of 37.26% for the year ended June 30, 2009 compared to 25.73% gross profit rate achieved during the same period last year. However, the gross profit in terms of absolute value was increased by 125% because of the volumetric growth, and better retention prices achieved.

(iv) Finance Costs

The financing cost of your Company during the year under review was increased to Rs.1 ,237 million from Rs.126.7 million during the same period last year. The finance cost was mainly increased due to winding up of cross currency swap transactions during first quarter of this financial year which were providing interest rates hedging. Moreover, the markup rates were also increased by the State bank of Pakistan during the year under review which also increased the financing cost of your Company.

(v) Distribution Costs

The distribution cost incurred by the Company was increased due to increase in volume of export sales, sea freights as well as increase in prices of oil consumed on transportation. The percentage of distribution cost to exports sales was 14.4% for the year ended June 30, 2009 as compared to 12.51% last year.

5 of 11

~

A Project 01 iUnu, ~ro1tlers Group

A Prof€ct of fum .. B,a1hei:s Groll'

Lucky Cement Limited Head Office: 6-A. M. Ali Housing Soclely. Karachi-75350. Pakistan. UAN: {Oll) 111-7B6-5S5, Fal: {021) 4514302 Central Marketing Office: 2nd Hoor.Al-Hassan Plaza. JamiaAshrafia, Main Ferozpur Road Lahore. Tel & UAN : (+92-42) 111-786-555 Fax: (+9242) 7530435 Plant Sites' Pezu Pla~t Pezu District, Lakki Marwat. NWFP. Tel.: (+~2.969) 580123, 58~124, 580125, 580126 UAN : (+92-969) 11H86-555 Fax: (+92-969) 580122

. Karachi PI ant: 58 Km Milestone Su per Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92-21) 5206421

A Lucky ~cement

"':,~ .. I

[$01'1101 :2(01) ...•.

1tiIU\ .. C,HI llliUJIT t 11'

!l.A, M. AI, Houslng Society. A Az" Hashim tsbba Street, KarllGhi.75350 • Pal<lstan.

Phone : UAN Hi • 786 • 555

: (+92·21) 453 7390. 4522554,4530176, 43S 2949

f'ax : (+9N1) 453 4302

E.ma<l : lnlo@lucky·cemsnl.oom Website: www.lucky.""menl.oom

Concrete Progrese;

{viJDeferred Taxation

During the year under review, the deferred tax provision of RS.419A93 million was provided in the profit and loss account making the total deferred tax liabilities to. RS.1.478 billion appearing in the balance sheet as on June 30, 2009 on account of temporary timing differences between the accounting and tax records.

(vii) .Contribution To The National Exchequer

Your Company contributed a total amount of Rs.5.339 billion (2008: RS.3.907 billion) to the Government Treasury in shape of taxes, levies, excise duty and sales tax. In addition to that your Company earned precious foreign exchange of approximate US$ 197.9 million during the year under review from exports.

Capital Expenditures

The Company incurred total expenditures of RS.8.4 billion as addition to Buildings and Plant & Machinery mainly consisted of Line "G' at Karachi Plant, Loose cement export terminal at Karachi Port and Conversion of Dual Fuel Power Generators.

Cash Flow Strategy

During the year under review, an amount of RS.6.5 billion was generated from operating activities of the Company which was spent mainly on net capital expenditures of RS.5.8 billion. The Company is well placed for its commitments towards long and short term loans.

Business Strategy

Your Company has been focusing on a four tier business strategy; each IS briefly narrated as under:

• Exploring and Establishing Export Markets:

The management of your Company has successfully established a well diversified export market to mitigate the risk of shortfall in exports .. Your Company has exported its high quality cement in more than 23 countries across Middle East, Africa and South East Asian countries and its brand is recognized and known as the best quality product amongst the high profile buyers.

'!l11J.~u}'1:J;t.}j;I#I$-It1;t.lIJilU.t·JU#t!l1

6 of 11

~

Lucky Cement Limited Head Dnlce: 6-A. M. Ali Housing Society. Kalachl-'753SD,. Pakislan.lWt(D21)1.fI.m.555,Ftt(021lo15W2 OentralMarkeling Office; 2nd Aoor,AI .. Hassan PIaLa, JamiaAshrafia, Main FerozplJf Road lahore. Tel & UAN: (i-92-42) 111 .. 786--555 Fax: (i-92-42) 7530435

Plant. Sites :. ~~~;~~ft;i:I~~t~iS~~: ~~~o~·:·~;:;: (;;:!h~~)y~~;~~:~2ie~pl~~~::12~+~~;~f2e~;J~~~7~~~~i~~j96~~:i~

A Lucky ~cement

R'~~ I

ISO 001:2.000· _ ..

~ :Pl.UIT l-n

GoA, M .. AIi Housing Society. A. Aziz Hashim Tabb"a Sireet. Karachl-75350 • Paklstafl.

Phone : UAN 1 11 - 786 - 555

• (+92-.21)453 mo. 452 2554. 453 0175, 4Ja 2549

Fa;o: . (~92-.21) 453 4302

E-malJ jnJoOI~com Web$iIa. "'WN.I~com

Concrete 'Progress-

• Economy of Sea.le with Foreign Operations:

After commissioning of Line'G', your Company has reached a new height of scale of production. The operation of Line "G' has been very smooth and its capacity utilization has reached to almost 90% within a short period of three months.

The management of your Company is now actively pursuing the setup of grinding facilities abroad for capitalizing the vast experience of its management together with its international brand recognition.

• Cost Reduction with Efficient Operation:

Without cost reduction measures and efficient operations, no company can achieve sustainable growth in lts business operation in a highly competitive world. The manag.ement of your Company has successful. implemented various cost reduction measures taken earlier except for the heat recovery project which is progressing according to schedule. As a result of various cost reducing measures, your Company is one of the lowest cost producers of cement in the country with hybrid technology. The Kiln operation of our Karachi Plant has achieved a milestone of 342 days of continueous running.

• Strong Infras.tructure:

Logistics and cost effective infrastructure are very vital for handling large scale export operations .. After the cornrnlssioninq of cement terminal project at Karachi Port, the turnaround of seagoing vessels has been increased drastically enabling your Company to further enhance its exports ..

Your Company has so far achieved the record sing'le day loading of 1'4,203 tons :IOOS8 cement in 24 hours on sea going vessel through the terminal facility.

Code of Corporate Governance

The Directors of your Company are aware of their responsibilities under the Code of Corporate Governance incorporated in the Listing Rules of the Stock Exchanges in the country under instructions from the Securities & .Exchange Commission of Pakistan. We are taking aU the necessary steps to ensure Good Corporate Governance in your Company as required by the Code.

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Lucky Cement Limited Head Office: 6-A, M. All Housing Sociely, K.ara.chl-75350. Pakistan. UAN: (021) 111·116·S5S,'Fal: (021) 4534102 Central Marketing Office: znd Floor,AI·Hassan Plaza, JamiaAshrafia, MaIn. Ferozpur Road Lahore. Tel &.UAN : (+92-42) 111·786·555 Fax: (+92.-42) 7530435 PlanlSites" Pezu Pl'anl.: Pew District, Lakki MarwaL NWEP. Tel.: (+92.·969)5801.23,580124,580125,580126 UAN : (~92-969) 111-786-555 Fax: (+92-969) 580122

.. .., Karachi Planl: 58 Km MHestone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92·2.1) 5206421

A Lucky • Cement

6-A, M_ Ali Houslrl{l Society, A. Aliz Hashim Tabba Street, Karachi-75350 - Pakistan,

phone : UAN 111 -786 - 555

: (+~2-21) 4537390,4522554,4530175,4382949 Fax: (+92-21) 4534302

E-mail: info@lucky-cemenl.com

Website: I'Iww.lucky-cement.com

Concrete Progress

As a part of the compliance of the Code, we confirm the following:

};> The financial statements, prepared by the management of the Company, present fairly its state of affairs, the result of its operations, cash flows and changes in equity.

)0> Proper books of account of the Company have been maintained.

_);> Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment

};> International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departure there from has been adequately disclosed.

}> The system of internal control is sound in design and is being effectively implemented and monitored. The function of internal audit has been outsourced to Mis. M. Yousuf Adil Saleem & Co. a member firm of Deloitte Touche

Tohrnatsu., Chartered Accountants. -

};> The Company has a very sound balance sheet with excellent debt equity ratio and therefore there is no doubt at all about Company's ability to continue as a going concern.

);> There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations.

}> We have an Internal Audit Committee the members of which are amongst from the Board of Directors.

')- We have prepared and circulated a Statement of Ethics and business strategy among directors and employees.

)0> The Board of Directors has adopted a mission statement and a statement of overall corporate strategy_

);> As required by the Code of Corporate Governance, we have included the following information in this report:

o Statement of pattern of shareholding has been given separately.

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roo I) ~ LI~1 :J :tIl.: 1#I:f.ti .t'll):;a ~ ;1.')::tIi I

A Project of YunL.1i5 Brothers Group

A 1'rcjaoI 01 Yunus- 8<otf1ern Group

Lucky Cement Limited Head OUice: 6·A, M. Ali Housing Society, Karachi·75350. Pakistan. UAN;I021)111-7B6-m,Fal:!~2114534J02 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, JamiaAshrafra, Main Ferozpur Road Lahore. Tel & UAN : (+92·42) 111-786-555 Fax: (+92-42) 7530435 Plant Sites' Pezu Plant: Pezu District, Lakki Marwat N,W,F,P. Tel.: (+92-969) 580123, 580124, 580125, 580126 UAN : (+92·969) 111-786-555 Fax: (+92-969) 580122

, Karachi Plant; 58 Km Milestone Super Highway, Karachi. Telephones: (+92-21) 68099.36 Fax: (+92-21) 5206421

A Lucky • Cement

Concrete Progress

6-A, M, Ali Housing SO'Ciety, II, Alii Hashim Tabba Street, Karachi- 75350 - p'akist~n_

Phone 'UAN 11 j - 786 - 555

, (+92-21 )453 7~90, 4522554, 453 0175,438 2949 Fax: (+92-21) 453 4302

E-mail 'in!o@lucky-~meht.com

Website: www.lucky-cement.oom

~·I":"

"Registered '.

ISO 9()01 :2"000 • , ,

KAFI_.A~"U Pi..A.N.T 1 ~

o Statement of shares held by associated undertakings and related person has been given separately.

o Statement of the Board meetings held during the year and attendance by each director.

o Key operating and financial statistics for last five years has been giiven separately.

Attendance of Directors at Board Meetings:

During the year under review five board meetings were held and attendance of each director is as under:

-5.#

Name of Directors

NO, of IVh~~tifJ9 A,ttellt!ed 4

5

3

4

5

4

4

5

1 2 3 4 5 6 7 8

Mr. Muhammad Yunus Tabba Mr. Muhammad Ali Tabba

Mr. MuhammadSohail Tabba Mr. Imran YunusTabba

Mr. Javed Yunus Tabba

Mrs. Rahua Aleem

Miss Mariam Hazzak

Mr. Manzoor Ahmed

Corporate Social Responsibility

The Company is committed towards fulfilling its Corporate Social Responsibility (CSR) and actively participates in social work programmes. As a part of CSR activities, contributions were made in the sectors of health, education, environment and relief work.

Future Outlook

The demand of cement in domestic market. was reduced by 14% during the financial. year under review mainly because of drastic reduction of PSDP allocation, deteriorated economic, financial,law and order situation in the Country. However,. the government has substantially increased the PSDP allocation for the next financial year together with the flowing in of project specific contribution from United State of America and other donor countries but still their exists some uncertainties for the mega development activities in the Country .. Your management is of the view that during the next financial

A Pro!ocl.oI VUrlUS 8ro1hersGroop

9 of 11

DO,

A Prolacl or YunLlS BmlhersGiOOj'i

Lucky Cem.ent Limited Head Office: 6-A, M. Ali Housing Society. Kara.chi-75350. Paklstan.uAN:lo21)11H86-5SS,Fax:(021)4S34JG2 Central Marketing Office: 2nd Floor. AI-Hassan Plaza, Jamia Ashrafla, Main Ferozpur Road Lahore. Tel & UAN : (+9242) 11 P86"555 Fax: (+92-42) 7530435 Plant Sites . Pezu Plant: Pezu District, Lakki Marwat. N,WF.P. Tel.: (+92"969) 580123, 580124, 580125,580126 UAN: (+92·969) 11PB6"555 Fax: (+92-969) 580122 •. .' .Karachi Plant; 58 Km Mi lestone Super Hig hway, K,arachi. Telephones: (+92"21) 6809936 Fa.x: (+92-21) 5206421

A Lucky ~cement

KARACHI Pl.ANT

G-A, M. Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi·75a50 - Pakistan.

Phone ; UAN 11 1 - 786 - 555

: (+92-21) 4537:)90,4522554.4530175,4382949

Fax' : (+92-21) 4534302

E·mail ; info@lucky'cement.com

I

e

Registered ISO 9001:2000

.>1

Concrete Progress I:!f' J

year the demand of cement will atleast maintained at the same level of demand as of financial year under review. Moreover, there are prospects for 10% to 15% growth in the demand of cement during the next financial year.

Website; \V\'Iw.lucky-Gement.com

On the export front, the cement industry achieved a robust growth of 47.48% in the export of cement despite of earlier apprehensions for slow down in exports. We understand that the potential of exports still exists atleast for a couple of years in the region. Thereafter, African markets will be the future growth engine for the demand of cement where in the supply legs far behind then the ever increasing demand of cement in almost every country.

Your Company has already taken various measures to mitigate the risk of slow down in its exports. The management of your Company is hopeful to achieve exports target for the next financial year.

Dividend

The Board is pleased to propose a dividend of Rs. 4/- per share for the financial year ended June 30, 2009. The appropriations approved by the Board of Directors are as follows:

Appropriation:

Profit after Taxation

Un-appropriated profits from prior year Available for appropriation

Subsequent Effects:

Proposed dividends for the year on ordinary shares @ Rs. 4/Proposed transfer to General Reserves

Rs.

In '000,1

4,596,549 3,078,251 7,674,800

1,293,500 5,000,000 6.293.500

1,381,,300

Un-appropriated profit carried forward

mil ~ 111'.1 :J :tIl.: l#liJ'.'Iij ,tIII):I ~ ,t.!):tIi I

10 of 11

ua

A I'rcIaCI of Yunus BIOmers Gro'

A Ptojool.oI YlJnllS Bro1hers Group

Lucky Cement Limited Head Office: 6-A. M. Ali Housing Society. Karachl-7535D.Pakistan. UAIl: I021j 111-1S6·555,Fax: (021 I 4534J62 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, Jamia Ashrafia, Main Ferozpur Road Lahore, Tel & UAN : (+92-42) 111-786-555 Fax: (+92-42) 7530435 Plant Sites' Pezu Plant: Pezu District, Lakki M~rwat. NW.F.P. Tel.: (+~2-969) 580123, 58~124, 580125, 580126 UAN: (+92-969) 111-786-555 Fax: (+92-969) 580122

, Karachi Plant: 58 Km Milestone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92-21) 5206421

A Lucky • Cement

I

Re tsrered

ISO §OOl:ZOOO

KAR.&CHI PlAHT 121

6-A, M. Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 - Pakistan.

Phone : UAN 111 - 780·555

: (+92-21)453 7390. 452 2554,4530175,4382949 Fax: (+92-21) 453 4302

E-mail: in!o@lucky-cement.com

Website: www.lucky-cemel1t.com

Concrete Progress

Election of Directors

The three years term of the offices of existing Board of Directors is being completed and an election of Directors of the next term of three years to be held in the coming annual general meeting as per Article 56 and 59 of the Article of Association of the Company and Section 171 and 178 of the Companies Ordinance 1984. The Board has fixed the same 8 numbers of directors to be elected in the coming election of Directors.

Auditors

The Auditors, Mis. Ford Rhodes Sidat Hyder & Company Chartered Accountants, retire and being eligible have offered themselves for reappointment.

Acknowledgement

Your Directors express their appreciation to the bankers and financial institutions that extended assistance in financing to the Company, its contractors who are working on the expansion projects and the Company's workers, staff and executives for their devotion and hard working_

On behalf of the Board

'-'~AD YUNUS TABBA Chairman I Director

Karachi: Augllst 05, 2009.

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A Ptofect of Yunus Brolhers Group

A ProjEi¢t of YumiS 8ro1hers Group

Lucky Cement Limited Head DIUce: 6-A. M. All Housing Sociely. Karachi-7535D. Pakistan. UAN:ID21)111·7B0-555.Fa~:ID211453j3D2 Central Marketing Office: 2nd Floor, AI-Hassan Plaza, JamiaAshrafia, Main FerolpurRoad Lahore. Tel & UAN : (+92-42) 111-786-555 Fax: (+92-42) 7530435 Plant Sites' Pezu Plant: Pew District, Lakkl MarNa!. N.w.F.P. Tel.: (+92-969) 580123,580124,580125,580126 UAN : (+92-969) 111-786-555 Fax: (+92-969) 580122

, Karachi Plant: 58 Km Milestone Super Highway, Karachi. Telephones: (+92-21) 6809936 Fax: (+92-21) 5206421