Lucky Cem. S Regulatory News (LKCS)

LCK/CS/FR2016/2016-17/ 1st September 2016

Dear Sir(s)

Financial Result for the year ended 30th June 2016

We have to inform you that the Board of Directors of our Company in their Meeting held on Thursday, 1st September 2016 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

(I) Cash Dividend 100%

(ii) Bonus Shares Nil

(iii) Right Shares Nil

(iv) Any other Entitlement / 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 attached.

The 23rd Annual General Meeting (AGM) of the Company will be held on Saturday 29th October 2016 at 10:30 a.m., at the registered office of the Company situated at factory premises Pezu, District Lakki Marwat, Khyber Pukhtunkhwa.

The Share Transfer Books of the Company will remain closed from Monday, 17th October to Saturday 29th October 2016 (both days inclusive). Transfers received at our Share Registrar/Transfer Agent M/s. Central Depository Company of Pakistan Limited, CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400 at the close of business on Saturday 15th October 2016 will be treated in time for the purpose of above entitlement to the transferees.

We will be sending you 200 copies of printed accounts for distribution amongst the Trading Right Entitlement (TRE) Certificate Holders of the Exchange 21 days before the date of AGM.

Yours truly,

For: LUCKY CEMENT LIMITED

MUHAMMAD FAISAL

Executive Director and

Chief Strategy, Finance & Investment Officer

Directors' Report (Condensed)

The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, the stand-alone and consolidated audited financial statements for the fiscal year ended 30th June 2016.

Cement industry in Pakistan grew by 9.8% to 38.87 million tons during the fiscal year ended 30th June, 2016 compared to 35.40 million tons during last year. While local sales volume registered a growth of 17.0% to 33.00 million tons during the fiscal year compared to 28.21 million tons during last year; export sales volume registered a decline of 18.4% to 5.87 million tons during the year under review compared to 7.19 million tons of last year.

Your Company achieved an overall growth of 2.1% to 6.93 million tons during the fiscal year 2015-16 compared to 6.79 million tons sold last year. While local sales volume of your Company registered a growth of 20.5% to 5.33 million tons during the fiscal year 2015-16 compared to 4.42 million tons last year; export sales volume declined by 32.2% to 1.61 million tons during the fiscal year 2015-16 compared to 2.37 million tons of last year.

The Earnings Per Share (EPS) for the fiscal year ended 30th June 2016 was recorded at PKR 40.03 which is 4.1% higher than the last year's EPS of PKR 38.44.

a. Production & Sales Volume Performance

The production and sales statistics of your Company for the fiscal year 2015-16 compared to last year are as follows:

The production and sales volume data is graphically presented as under:

A comparison of the dispatches of the industry and your Company for the fiscal year ended 2015-16 with last year is presented below:

A comparative year-wise analysis of market share of your company is as under:

b. Financial Performance

Brownfield Expansion (Installation of additional Line) at Karachi Plant

Keeping in view the expected growth in cement demand on the back of public and private sector construction projects as well as mega infrastructure development projects primarily driven by China Pakistan Economic Corridor (CPEC) initiative, your Company has decided to increase cement production capacity with the instalation of new cement production line at Karachi Plant of 1.25 million tons per annum at a total project cost of around USD 30 million. This additonal line will become operational by the end of the calendar year 2017.

Fully integrated green field Cement Plant in Punjab Province of Pakistan

Your Company is engaged with the Government of Punjab for acquisition of land for the project. Similarly, it is also in the process of negotiating and finalizing contract with the equipment supplier. Both these activities are likely to be completed by the end of September 2016.

Electricity Supply to PESCO

NEPRA re-determined the tariff in July 2016; however, since the re-determined tariff was not commercially viable; therefore, your Company decided not to pursue this matter any further.

10 MW WHR at PEZU Plant - Kiln

Shipment from the supplier of Project equipment is in progress and the required civil work has already been initiated at the site. The project is expected to be completed by December 2016.

Investment in 1 x 660 MW, supercritical, coal based power project

On the advise of the government, the management of your Company is currently engaged with relevant authorities to explore the possibility of using both imported as well as local (Thar) coal as fuel. Use of Thar coal in the power project will require some changes to be made in the design of the equipment which was originally finalized with the EPC contractor(s). The target to finalize the EPC contract with the revised scope is October 2016. This project will be put up on the original site at Port Qasim, Karachi.

The consolidated audited financial statements of the Company for the fiscal year ended 30th June 2016 include the net assets of Lucky Electric Power Company Limited which is a 100% indirectly owned subsidiary of the Company.

Joint Venture Investment in Cement Plant in DR Congo

The construction work at project site is in the final stages to achieve planned Commercial Operations Date (COD) of October 2016.

The effect of 50% share of the net assets of the DR Congo plant has been reflected in the consolidated audited financial statements of the Company for the fiscal year ended 30th June 2016.

Equity Investment in Associated Company in 50 MW Wind Farm

Project construction and installation works have been completed. Testing and commissioning activities of the complex are in final stages. The project is expected to achieve COD by September 2016.

Your Company is fully committed to elevate the livelihood of the society it operates in. Corporate social responsibility is not just a core-value but it also forms an integral part of your Company's business model. Your Company endures its commitment by staying true to its cause in supporting the best avenues of education, health and environment.

In its resolve to provide quality education to the less-privileged class of the society, your Company continued to offer merit based scholarships to the deserving students across the country enrolled with leading institutions throughout the year. Playing its part in promoting literacy amongst the masses, your Company supplemented the book reading habits in children by celebrating 'International Literacy Day' at under-privileged schools in Karachi and Pezu during the year. Your Company also generously donated to various not-for-profit organizations providing education through public schools nationwide. Your Company also provided school books for blind students registered with Pakistan Welfare Association of Blind.

In its efforts to sustain the environment, your Company celebrated Green Office Week on account of World Environment Day (5th June) through awareness building sessions amongst employees, tree plantation drives at Karachi and Pezu Plants, and continuous efforts to reduce the carbon footprint of its business operations.

Sustaining its core value of social development, your Company has devotedly participated in numerous health projects across Pakistan. This includes patronage of Aziz Tabba Foundation, a welfare entity dedicated to raising the standards of health, education, and economic wellbeing of humanity by operating a leading cardiac hospital and a leading kidney center in the country. Your Company is also supporting Karachi Relief Trust in Disaster Management and rehabilitation of IDPs, as well as the Special Olympics Pakistan in organizing healthy athletic activities in the country. In addition, your Company continued its support to numerous social improvement initiatives in the country and provided support to various non-governamental organisations.

Your Company is optimistic about its local volumetric growth in the upcoming financial year. Domestic sales are expected to remain strong on the back of public and private sector construction projects as well as mega infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) initiative. Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.

Taking into account the current capital and equity investment plans; the board has proposed the final dividend of PKR __/- per share for the financial year ended 30th June 2016.

This approach remains in line with your Company's commitment to consistently provide sustainable returns to the shareholders. Movement in un-appropriated profit is as follows:

Your directors take this opportunity to express their deep sense of gratitude to all the stakeholders for their encouragement and support.

We would like to place on record our sincere appreciation for the commitment, dedication and hard work put in by every member of the Lucky family.

And also our shareholders, who have always shown their confidence and faith in the Company.

On behalf of the Board

MUHAMMAD YUNUS TABBA

Chairman / Director

Karachi: 1st September 2016