May 31, Analysts Briefing 2 nd Quarter 2013

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1 May 31, 2013 Analysts Briefing 2 nd Quarter 2013

2 Key Highlights of 2Q 2013 Olpers Ramazan Mubarak Omore Monkey Peel Tarang IIFA campaign Tarang Houseful Awards

3 Business Update Dairy & Beverages 12,000 10,000 8,000 6,000 4,000 2,000 0 Revenue (Rs. M) 10,409 9,257 9,161 8,110 8,953 8,749 8,330 7,124 5,924 6,149 Ambient UHT Powder & Cream Juices 1H 12 vs. 1H 13 Ambient UHT Market Share: May 2013 (Nielsen) 51% Ambient UHT Volume Growth Ambient UHT Value Growth Powder Value Growth (13%) (4%) (5%) Juices Value Growth 15% 35% 30% 25% 20% 15% 10% 5% GP as a % of revenue 25% 21% 21% 18% PAT as a % of revenue 8% 5% 4% 4% 23% 23% 24% 7% 6% 9% 28% 11% 29% 9% 24% 6% QoQ Dip in GP% Cost inflation (3%) Impact of volume dip (2%) Net drop in GP (5%) 0% 3

4 Business Update Ice cream & Frozen Desserts 1,200 1, Revenue (Rs. M) 1, % 1H 12 vs. 1H 13 Market Share 25% Volume Growth (20%) Value Growth (7.3%) For the first time, Omore reported profit for Quarter with 48% GP (10) 34% 40% 33% 48% 45% (60) 28% 29% 23% 23% (31) 38% 22% 30% (110) (160) (128) (77) PAT (Rs. M) (80) (120) (135) GP as % of revenue (110) (133) (143) 15% 0% 4

5 Business Update - Farm 3,500 3,000 2,500 2,000 1,500 1, Herd Size ,420 2,393 2,615 2,918 3,204 3,116 3,444 3,526 3,512 3,329 Production (thousand litres per day) (5) (0.5) (25) (45) (19) (33) (35) (19) (30) (18) (65) (85) (105) PAT (Rs. M) (97) 5

6 Overall Performance 12,000 10,000 8,000 6,000 6,363 Revenue (Rs. M) 8,493 7,922 7,081 9,666 10,099 9,630 10,774 9,624 9,309 3% decline QoQ 4,000 8% decline YoY 2, ,200 1, PAT (Rs. M) % decline in EPS QoQ 13% decline in EPS YoY EPS

Investment and Balance sheet CAPEX Rs bn Cash Outlay Committed Remaining 2.7 1.7 4.

7 Investment and Balance sheet CAPEX Rs bn Cash Outlay Committed Remaining remaining CAPEX will be committed by end 2013 / early 2014 Healthy Balance sheet Long Term Debt to Equity Ratio 33 : 67 Current Ratio 2.2 : 1 Ending Cash Balance Rs. 979 Mln

9 Pilot project Fresh Dairy City Opportunity Milk collection Plant Distribution Sales / Marketing Karachi Loose milk consumption in Karachi is 3.8 mn liters per day (Rs 104 bn annually) Use of existing infrastructure Leased plant of an existing player Develop own infrastructure Various model will be tried and evaluated Revenue Rs mn 91 1,239 PAT Rs mn (101) (264) CAPEX Way forward will be dependent on results of pilot project

10 Pilot project Meat City Opportunity Animal procurement Plant Distribution Sales / Marketing Export Lahore Nationwide Market size Beef 548 Bln Mutton 339 Bln Chicken 188 Bln Seafood 256 Bln Total Market 1,331 Bln Our existing milk collection infrastructure will be used. Middle man will be removed from supply chain/animal procurement Tolling arrangement with existing slaughter house Develop own infrastructure Various model will be evaluated Revenue Rs mn PAT Rs mn (53) (221) CAPEX Rs mn Way forward will be dependent on results of pilot project

11 Contingencies & ESOS SHC judgment on Minimum Tax: SHC judgment (May 2013) in case of a textile company - minimum tax is not recoverable if the Company had taxable loss in that year; Efoods recoupable minimum tax of Rs. 607 million; As advised by consultants, this decision is against the intention of law; and We believe that this will be reversed in Supreme court Sales tax Exemption one month impact: In recent budget, Dairy products were put in Exempt category from 13 th June; Subsequently, the Zero-Rating status was restored thru SRO dated 18 th July; As advised by Tax consultant, effective date is from 13 th June. Hence, Input Sales Tax paid during 13 th June to 18 th July (approx. Rs. 208 million) has been recorded as receivable (and not as expense). Employee Share Option Scheme (ESOS): ESOS scheme was approved by Shareholders in EoGM on March 22, 2013; After tax charge (year wise) on 13.9 million shares is as under: Charge will be evaluated again on the date of grant Total After tax charge

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company information 2 directors report 4 condensed interim balance sheet 6 condensed interim profit and loss account 7

contents company information 2 directors report 4 condensed interim balance sheet 6 condensed interim profit and loss account 7 condensed interim statement of comprehensive income 8 condensed interim statement