40,000 38,301 39,603 39,161 39,303 38,562 39,500 39,000 38,500 38,000 37, Dec 4-Dec 5-Dec 6-Dec 7-Dec. Source: PSX & AKD Research

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1 FCCL FATIMA UBL KEL EFERT PSMC PSO PIOC HASCOL APL AKD Equity Research / Pakistan AKD Research research@akdsecurities.net Indices KSE-100 KSE-30 This week 38,562 18,382 Last week 40,496 19,324 Indices KMI-30 Allshare This week 64,764 28,332 Last week 68,389 29,382 Mkt Cap. PkRbn US$bn This week 7, Last week 8, Avg. Daily Turnover ('mn shares) This week Last week Change -1.79% Weekly Review It was another difficult week for the market with KSE-100 index closing at 38,562.05pts, slipping 4.8%WoW. Unexpected interest rate hike of 150bps to 10.0% by SBP in post market hours on previous Friday caught investors off guard, and coupled with PkR currency depreciation triggered across the board selling on Monday (KSE-100 index was down 3.3%). And when the going gets tough, tough gets going! Oil prices receded 2.4%WoW in the run-up to the OPEC s meeting as non-opec producers expand production, with pressure being exerted by OPEC s decision to delay a final decision on output cuts, awaiting support from non-opec heavyweight Russia. Consequently, Oil & Gas sector lost 5.7% of its market capitalization during the week. The negatives overshadowed the improving relationship of Pakistan with the US, with the latter coming for assistance in negotiating settlement of the Afghan War. Performance wise, top laggards in AKD universe were; i) APL (-13.88%), ii) HASCOL ( %), iii) PIOC (-12.94%), iv) PSO (-12.47%), and v) PSMC (-11.22%). Volume leaders for the week were; i) KEL (65.37mn), ii) BOP (49.99mn), iii) LOTCHEM (44.37mn), iv) MLCF (43.23mn), and v) PAEL (37.13mn). Importantly, foreign selling subsided in the current week with FIPI standing at ve USD2.5mn vs. ve USD51.1mn in the previous week (USD32.6mn net selling on Friday, being the last day for MSCI rebalancing in the local market). Avg. volumes turned lower standing at 205.0mn shares (KSE All-share) vs mn shares in the previous week whereas activity was tilted towards blue-scrips with KSE-100/KSE-All share traded value standing at 0.74x vs. 0.66x in the previous week. Index & Volume Chart Universe Gainers & Losers Top-5 Volume Leaders Symbol Volume (mn) KEL : BOP : LOTCHEM : MLCF : PAEL : (Shrs'000) 200, , , , , ,000 80,000 60,000 40,000 20,000-38,301 39,603 39,161 39,303 38,562 3-Dec 4-Dec 5-Dec 6-Dec 7-Dec (Index) 40,000 39,500 39,000 38,500 38,000 37, % 3.0% 1.0% -1.0% -3.0% -5.0% -7.0% -9.0% -11.0% -13.0% -15.0% Ready Volume (LHS) KSE100 Index (RHS) (share mn) Dec-17 Mar-18 Jul-18 Oct-18 Dec-18 Volume (LHS) KSE-100 Index (Index) 46,000 44,000 42,000 40,000 38,000 36,000 Source: PSX & AKD Research Source: PSX & AKD Research Outlook The next week is likely to be dominated by the same preoccupations. Final OPEC decision on production cuts would set the tone of the market for the upcoming week. Market performance could remain choppy where investors are likely to shift funds to fixed income in the aftermath of latest rate hike (Mutual Funds sold off US$31.1mn equities in the outgoing week) and uncertainty remains on external funding. We advise investors to play defensive, with exposure tilted towards macro hedged defensive plays. Important disclosures Important disclosures including investment banking relationships and analyst certification at end of this report. AKD Securities does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision. AKD Securities TREC Holder & Registered Broker Pakistan Stock Exchange REP-019 Find AKD research on Bloomberg (AKDS<GO>), firstcall.com and Reuters Knowledge Copyright 2018 AKD Securities Limited. All rights reserved. The information provided on this document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject AKD Securities or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this document constitutes a solicitation or offer by AKD Securities or its affiliates to buy or sell any securities or provide any investment advice or service. AKD Securities does not warrant the accuracy of the information provided herein.

2 This Week s Daily Reports Dec 07, ,730 38,630 38,530 38,430 38,330 38,230 38,130 38,030 37,930 37,830 37,730 Dec 06, ,550 39,400 39,250 39,100 38,950 38,800 38,650 38,500 38,350 38,200 9:30 9:54 10:19 10:44 11:08 11:33 11:58 12:22 12:47 13:12 13:36 14:01 14:26 14:51 15:15 9:15 9:39 10:02 10:26 10:49 11:13 11:36 12:00 12:23 12:47 13:10 13:33 13:57 14:20 14:44 15:07 15:31 15:54 16:18 9:30 9:53 10:17 10:40 11:04 11:27 11:51 12:14 12:55 13:18 13:42 14:05 14:29 14:52 15:16 Dec 05, ,800 39,650 39,500 39,350 39,200 39,050 38,900 38,750 38,600 Dec 04, ,800 39,700 39,600 39,500 39,400 39,300 39,200 39,100 39,000 38,900 38,800 9:30 9:53 10:17 10:40 11:04 11:27 11:51 12:14 12:37 13:01 13:24 13:48 14:11 14:35 14:58 15:22 9:30 9:55 10:20 10:44 11:09 11:33 11:58 12:23 12:47 13:12 13:36 14:01 14:26 14:50 15:15 Dec 03, ,550 40,350 40,150 39,950 39,750 39,550 39,350 39,150 38,950 Source: PSX & AKD Research Pakistan Energy: Those not busy being born are busy dying, (AKD Daily, Dec 07, 2018) Short-termism has routed the power chain, where reactionary measures burdening the space include: 1) closure of FO generation base leading to inventory pile ups at refiners, 2) RLNG supply under debate with possible extension of supplies to households, and 3) continuing buildup of circular debt where clearance measures are yet to be enacted. Analyzing CYTD HSFO and HSD cracks to Brent, we highlight the lack of movement in HSD prices relative to Brent illustrating expanding premium, whereas HSFO trades at discounts, limiting its feasibility for export. In short, deviations in cracks could limit refined fuel price movements for national OMCs. RLNG on the other hand has expanded its footprint in the country's energy mix with quantum of imports rising 92%YoY, as shipments on spot basis through PLL have reduced the overall LNG DES price slope to 13.02% (vs % under long term agreement), translating into saving of US$34.3mn FYTD, all the more meaningful as policy measures to expand supply beyond power and industry inevitably raise losses. Crude benchmarks in the run up to OPEC's current meet indicate softness, as non-opec producers expand production, indicating a possible break in the cartel's hold on global crude prices. Pakistan Bank: NIMs to overshadow provisioning costs, (AKD Daily, Dec 06, 2018) Current market capitalization implies a sector ROE of 12.3% vs. expected 13.1% in CY19F. ROE is forecast to recover from 10.3% (CY18F) led by interest rate gains (CY19F NIMs: 3.9% vs. 3.4% in CY18). While the recent pace of interest rate hike (+4.25% in CY18F) is likely to result in higher provisioning cost (CY19/20F: 0.5/0.9% vs. 0.3% in CY18F), concerns over deteriorating asset quality ala CY08-09 are unfounded, in our view. Banking sector is better placed this time around with asset mix tilted towards investments (CY19F IDR: 58.0% vs. 39.7% in CY09) whereas economic growth is expected to remain around 4.8% (AKD Est., with downside risks) vs. 0.4% in CY09. Additionally, at that time, Textile sector led asset quality depletion in which Global economic scenario played its part. Hence, on NIMs net of provisioning basis, the sector is likely to reach close to CY12-13 level (CY19F: 3.4% vs. CY12-13avg. 3.5%) at which time the sector traded at 1.16x. We have preference for interest rate sensitive plays (BAFL, ABL) while we like UBL on cheap valuations. Pakistan Strategy: Tough times bring bonus issuance back in vogue, (AKD Daily, Dec 05, 2018) A deterioration of fundamental business dynamics is expected where by and large, rising costs (PkR devaluation, gas and power price hikes) coupled with supply side inflationary burden on consumers and slowing industrial activity, make for hampered pricing power, hurting profitability over the medium term. Declining profitability is expected to deplete the capacity of companies to disburse monetary payouts, where downside to dividends are expected, particularly from rising finance costs and debt servicing outflows. This convergence of 'bottom-up' negatives accompanied by slowing volumes and general decline in market activity, could relegate companies to augment non-cash payouts when faced with cash flow pressures, particularly in the form of stock bonuses. Already, CY18TD total stocks issuing bonus shares has climbed to 43 from 25 in CY17, where the reduction in tax on bonus shares has been the major catalyst, while total issuance remains below CY13 of 52. Even so, bonus shares can be seen to have a limited impact on market capitalization while remaining extremely difficult to forecast, we highlight the extended role they may play in keeping index heavyweights Banks and Cements in the limelight. Pakistan OMC's_Nov'18 Sales bring no good news, (AKD Daily, Dec 04, 2018) Seasonal weakness remained aggravated by slowing commercial demand amidst the continued closure of FO fired generation base weighing down Nov'18 POL product sales, amount- 2

3 This Week s Daily Reports ing to 1.28mn tonnes (-22%MoM/-33%YoY), a five year low. FO continued to recede -52%MoM/-70%YoY, while supply chain constraints, grey market sales (particularly in HSD), elevated product prices and refinery disruptions (FO storage volumes at capacity) kept MOGAS/HSD volumes lower (-16%/-20%MoM and -8%/-32%YoY), sapping industry volumes (ex-fo industry volumes fell 23%YoY). Total POL sales volumes for major OMCs moved -27%/-12%/-41/-24%YoY for PSO/APL/ HASCOL/SHEL and -27%/-21%/-32/-20%MoM, highlighting the tenuous operational situation of listed downstream player, while smaller foreign-backed players gain share (4 major smaller players at cumulative share of 11% vs. 4% in Nov'17). Lack of reduction in ex-refinery component of Dec'18 retail fuel prices makes us apprehensive of retail prices sliding anytime soon (PkR weakness and higher crack spreads in HSD) where we advocate sticking to sturdy business models (offtake and supply from related parties) while avoiding highly levered (PSO and HASCOL) players, leaving APL as out top pick in the space (TP of PkR650/sh with FY19 D/Y of 7.3%). Pakistan Strategy: Fear & Loathing' in November'18, (AKD Daily, Dec 03, 2018) Troubling macro backdrop stifled investor sentiment, pulling the benchmark KSE-100 index down 2.8%MoM, to close at 40,496pts, marking a period of consistent softness in equity markets (-0.5%/-3.4% CYTD/FYTD). Absence of concrete developments with regards to arranging external finances (bi-lateral or with the IMF), coupled with PkR weakness (resulting inflationary pressures), MSCI rebalancing and rising cost of borrowing (425bps hike CYTD) rattled investors The shaky end to Nov'18 brings macros back to center stage, where the 150bps hike (higher than consensus of 100bps) coupled with PkR volatility (touching 143 but closing at vs the US$ on Friday) will impose fundamental economic indicators (SPI, CPI, trade figures, credit offtake) on all aspects of capital markets. Somewhat encouraging are recent policy shifts which aid the GoP in mending fences with the IMF, as the pace at which macro-adjustments are to be made was the major point of contention in reaching the staff-level agreement, where we expect monetary tightening to continue (150bps hike during CY19) albeit at a slower pace. Dampeners aside, upsides over the medium term are likely to be event-driven in nature, with positive developments on foreign funding (oil funding arrangement with UAE, Chinese 'investments' materializing), IMF negotiations and GoP policy plan implementation (energy sector payment, tax reforms) could stymie bearish sentiment. 3

4 Dec-17 Mar-18 Jul-18 Dec-18 Dec-17 Mar-18 Jul-18 Oct-18 AKD Securities Limited Regional Valuations (2019) EPS Growth PE(x) Pakistan 21.84% 6.23 Indonesia 8.64% Malaysia 13.52% Philippines 6.49% Vitenam 12.39% India 24.55% China 12.29% 9.45 % ROE Divd Yld Pakistan 15.5% 7.01 Indonesia Malaysia Philippines Vitenam India China Source: AKD Research & Bloomberg PkR/US$ Trend TRJ-CRB Index Source: Bloomberg Source: Bloomberg Major World Indices Performance Country Bloomberg Code 7-Dec WoW CYTD Pakistan KSE100 Index 38,562 40, % -4.5% Srilanka CSEALL Index 6,069 6, % -4.6% Thailand SET Index 1,650 1, % -5.4% Indonesia JCI Index 6,126 6, % -3.0% Malaysia FBMKLCI Index 1,681 1, % -5.5% Philippines PCOMP Index 7,461 7, % -12.6% Vietnam VNINDEX Index % -1.9% Hong Kong HSI Index 26,064 26, % -12.7% Singapore FSSTI Index 3,111 3, % -8.5% Brazil IBX Index 36,641 36, % 15.9% Russia RTSSTD Index 16,217 15, % 19.0% India SENSEX Index 35,673 36, % 5.4% S&P SPX Index 2,696 2, % 0.3% DJIA INDU Index 24,948 25, % 0.4% UK UKX Index 6,787 6, % -11.0% Germany DAX Index 10,865 11, % -16.3% Qatar DSM Index 10,598 10, % 24.3% Abu Dhabi ADSMI Index 4,877 4, % 10.9% Dubai DFMGI Index 2,580 2, % -23.4% Kuwait KWSEIDX Index 6,633 6, % 3.5% Oman MSM30 Index 4,549 4, % -9.9% Saudi Arabia SASEIDX Index 7,849 7, % 8.6% MSCI EM MXEF Index % -15.1% MSCI FM MXFM Index % -15.6% International Major Currencies Commodities Source: Bloomberg SPOT 7-Dec Chg +/- WoW CYTD Dollar Index % 4.59% USD/PkR % 25.75% USD/JPY % -0.02% EUR/USD % -4.79% GBP/USD % -5.05% AUD/USD % -7.51% NZD/USD % -3.09% CHF/USD % 1.50% CAD/USD % 6.56% USD/KRW 1,120 1, % 4.58% CNY/USD % 5.33% Source: Bloomberg SPOT Units 7-Dec WoW CYTD TRJ-CRB Points % -6.08% Nymex (WTI) US$/bbl % % ICE Brent US$/bbl % % N. Gas Henry Hub US$/Mmbtu % 49.77% Cotton USd/Pound % -0.45% Gold US$/Tr.Oz % -4.16% Sliver US$/Tr.Oz % % Copper US$/MT % % Platinum US$/Oz % % Coal US$/MT % -0.58% Source: Bloomberg 4

5 Dec-17 Mar-18 Jul-18 Dec-18 Nov-17 Dec-17 Mar-18 Jul-18 Oct-18 AKD Securities Limited Chart Bank Earnings Yield vs. T-Bill (12M) Differential Advance to Decline Ratio (%) Nov-17 Oct-18 Dec-18 Nov-17 Oct-18 Dec-18 FIPI Flows for the week LIPI Flows for the week (US$'000) 2,000 1,000 - (1,000) (2,000) 533 1,686 (349) (821) (10.00) (20.00) Ind., Co., 6.15 Bank/DFI, 4.24 NBFC, 0.18 Ins, Others, (3.41) Prop. Trading, (4.58) (3,000) (4,000) (3,588) 3-Dec-18 4-Dec-18 5-Dec-18 6-Dec-18 7-Dec-18 (30.00) (40.00) M.Funds, (31.08) AKD Universe vs. KSE-100 Index KSE-100 vs. MSCI-EM & MSCI-FM 17% 12% 7% 2% 25% 20% 15% 10% KSE100 MSCI FM MSCI EM -3% 5% -8% 0% -13% -5% -18% -23% -10% -15% -20% KSE-All Share Index AKD Universe 5

6 Jul-07 Jun-08 May-09 May-10 Apr-11 Mar-12 Mar-13 Feb-14 Jan-15 Jan-16 Dec-16 Nov-17 AKD Securities Limited AKD Universe Valuations 7-Dec F 2019F 2020F EPS (PkR) EPS chg (%) 3.82 (5.90) EPS chg (%) ex-e&p (15.73) Book Value per Share (PkR) Payout (%) Valuations Price to Earnings (x) PER (ex-e&p) (x) Price to Book (x) Price to CF (x) Earnings Yield (%) Dividend Yield (%) EV / EBITDA (x) Profitability Return on Equity (%) Return on Assets (%) Chg in Sales (%) (14.06) Gross Margin (%) Operating Margin (%) Net Margin (%) Source: AKD Research Market PER Chart 2018 (x) Source: AKD Research 6

7 AKD Universe Active Coverage Cluster s Valuations Stock Symbol Price TP Stance EPS(PkR) PE(x) PB(x) DY(%) UR Under Review (PkR) (PkR) 17 18F 19F 17 18F 19F 17 18F 19F 17 18F 19F Automobile and Parts Indus Motors INDU 1, , Buy Pak Suzuki Motors PSMC Buy Cements DG Khan Cement DGKC Buy Lucky Cement LUCK Buy Maple Leaf Cement Factory MLCF Buy Fauji Cement Company Ltd. FCCL Buy Pioneer Cement Limited PIOC Buy Cherat Cement Co Limited CHCC Buy Gharibwal Cement Ltd GWLC Buy Cable & Electrical Goods Pak Elektron Ltd PAEL Buy Engineering Amreli Steels Ltd. ASTL Buy Fertilizers Engro Corporation ENGRO Buy Engro Fertilizers Limited EFERT Buy Fauji Fert. Bin Qasim Ltd. FFBL Buy Fauji Fertilizer Company FFC Buy Fatima Fertilizer FATIMA Buy Food Producers Engro Foods Limited EFOODS Sell Oil & Gas Oil & Gas Development Co. OGDC Buy Pak Oilfields POL Buy Pakistan Petroleum PPL Buy Hascol Petroleum HASCOL Buy Attock Petroleum APL Buy Pakistan State Oil PSO Buy Power Hub Power Co. HUBC Buy K-Electric Co. KEL UR UR UR UR UR UR UR UR UR UR UR UR UR UR UR Kot Addu Power Company KAPCO Sell Personal Goods Nishat Mills NML Buy Nishat Chunian Ltd. NCL Neutral Banks Allied Bank Limited ABL Buy Bank AlFalah BAFL Buy Habib Bank Limited HBL Buy MCB Bank Limited MCB Buy National Bank of Pakistan NBP Buy United Bank Ltd UBL Buy Source: AKD Research 7

8 AKD Universe Coverage Cluster s Performance S toc ks S ymbol P ric e Absolute P e rforma nc e (%) 1 Y e a r 1 Y e a r 7 - De c M 3M 6M 12 M CY TD High Low KS E Inde x 3 8, , , Automobile a nd P a rts Indus Motors INDU Pak Suzuki Motors PSMC Ce me nts DG Khan Cement DGKC Lucky Cement LUCK Maple Leaf Cement Factory MLCF Fauji Cement Company Ltd. FCCL Pioneer Cement Limited PIOC Cherat Cement Limited CHCC Gharibwal Cement Limited GWLC Engine e ring Amreli Steel Ltd ASTL Fe rtilize rs Dawood Hercules DAWH Engro Fertilizers Ltd. EFERT Engro Chemical ENGRO Fatima Fertilizer FATIMA Fauji Fert. Bin Qasim Ltd. FFBL Fauji Fertilizer Company FFC Food P roduc e rs Engro Foods Limited EFOODS Ca ble & Ele c tric a l Goods Pak Elektron Limited PAEL Oil & Ga s Oil & Gas Development Co. OGDC Pak Oilfields POL Pakistan Petroleum Ltd. PPL Pakistan State Oil PSO Attock Petroleum Ltd. APL Hascol Petroleum HASCOL P owe r Hub Power Co. HUBC K- Electric Limited KEL Kot Addu Power Company KAPCO P e rsona l Goods Nisaht (Chunian) Ltd. NCL Nishat Mills NML Ba nks Allied Bank Limited ABL Bank AlFalah BAFL Habib Bank Limited HBL MCB Bank Limited MCB National Bank of Pakistan NBP United Bank Ltd UBL Source: PSX & AKD Research 8

9 Economic Snapshot End Month Data Units Nov-17 Dec-17 Mar-18 Jul-18 Oct-18 Monetary Rates T-Bills - 3M % T-Bills - 6M % T-Bills - 12M % PIB 10Y % KIBOR 6M % Discount rate % Policy rate % Inflation Headline inflation % Core inflation % Food inflation % (0.20) External Indicators Export (PBS) US$ (mn) 1,974 1,977 1,971 1,902 2,231 2,133 2, ,646 2,017 1,728 1,903 Import (PBS) US$ (mn) 4,898 4,910 5,607 4,797 5,280 5,066 5, ,838 4,992 4,430 4,841 Trade Deficit (PBS) US$ (mn) (2,924) (2,933) (3,636) (2,895) (3,049) (2,933) (3,670) (3,807) (3,192) (2,975) (2,702) (2,938) Export (SBP) 2,546 2,464 2,111 2,059 2,305 2,246 2,266 2,012 2, Import (SBP) 5,346 5, ,334 4,943 4,949 5,166 5,133 5,493 4,460 3,792 4,717 Trade Deficit (SBP) (2,800) (2,676) (2,763) (2,275) (2,638) (2,703) (2,900) (3,121) (3,484) (2,373) (1,991) (2,654) Home Remittances US$ (mn) 1,577 1,724 1,639 1,672 1,773 1,651 1,771 1,594 1,929 2,037 1,452 2,000 Current Account US$ (mn) (1,441) (1,256) (1,617) (1,241) (1,237) (1,947) (2,011) (1,976) (2,200) (600) (909) (1,218) Banking Sector Deposits PkR (bn) 11,969 12,362 12,002 11,933 12,571 12,277 12,258 13,063 12,551 12,692 13,032 n.a Advances PkR (bn) 6,280 6,530 6,556 6,629 6,812 6,839 7,046 7,362 7,336 7,426 7,492 n.a Investments PkR (bn) 8,475 8,542 7,637 8,127 6,853 7,784 6,733 8,179 7,785 6,893 6,677 n.a W. A. lending rate % W. A. deposit rate % Spread rate % Public Finance Tax collection PkR (mn) 271, , , , , , , , Direct taxes PkR (mn) 98, ,476 95,706 89, ,524 95, , ,441 n.a n.a n.a n.a Indirect Taxes PkR (mn) 172, , , , , , , ,691 n.a n.a n.a n.a Currency Fx Reserves US$ (mn) 18,774 20,154 18,957 18,317 17,796 17,540 15,977 16,407 16,891 16,370 14,921 14,016 USDPkR - Interbank PkR/USD Source: SBP, PBS & AKD Research 9

10 Analyst Certification We, the AKD Research Team, hereby individually & jointly certify that the views expressed in this research report accurately reflect our personal views about the subject securities and issuers. We also certify that no part of our compensation was, is,or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. We further certify that we do not have any beneficial holding of the specific securities that we have recommendations on in this report. AKD Research Team Analyst Tel no. Coverage Usman Zahid (693) Executive Director Research Hamza Kamal (603) Banking Ali Asghar Poonawala (646) OMCs & Automobiles Umer Farooq (602) Textiles & Steel Qasim Anwar (680) Technical Analysis Nasir Khan (639) Research Production Tariq Mehmood (643) Library Operations DISCLOSURES & DISCLAIMERS This publication/communication or any portion hereof may not be reprinted, sold or redistributed without the written consent of AKD Securities Limited. AKD Securities Limited has produced this report for private circulation to professional and institutional clients only. The information, opinions and estimates herein are not directed at, or intended for distribution to or use by, any person or entity in any jurisdiction where doing so would be contrary to law or regulation or which would subject AKD Securities Limited to any additional registration or licensing requirement within such jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable and complied by our research department in good faith. Such information has not been independently verified and we make no representation or warranty as to its accuracy, completeness or correctness. Any opinions or estimates herein reflect the judgment of AKD Securities Limited at the date of this publication/ communication and are subject to change at any time without notice. This report is not a solicitation or any offer to buy or sell any of the securities mentioned herein. It is for information purposes only and is not intended to provide professional, investment or any other type of advice or recommendation and does not take into account the particular investment objectives, financial situation or needs of individual recipients. Before acting on any information in this publication/communication, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. Neither AKD Securities Limited nor any of its affiliates or any other person connected with the company accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained therein. Subject to any applicable laws and regulations, AKD Securities Limited, its affiliates or group companies or individuals connected with AKD Securities Limited may have used the information contained herein before publication and may have positions in, may from time to time purchase or sell or have a material interest in any of the securities mentioned or related securities or may currently or in future have or have had a relationship with, or may provide or have provided investment banking, capital markets and/or other services to, the entities referred to herein, their advisors and/or any other connected parties. AKD Securities Limited (the company) or persons connected with it may from time to time have an investment banking or other relationship, including but not limited to, the participation or investment in commercial banking transaction (including loans) with some or all of the issuers mentioned therein, either for their own account or the account of their customers. Persons connected with the company may provide corporate finance and other services to the issuer of the securities mentioned herein, including the issuance of options on securities mentioned herein or any related investment and may make a purchase and/or sale of the securities or any related investment from time to time in the open market or otherwise, in each case either as principal or agent. This document is being distributed in the United State solely to "major institutional investors" as defined in Rule 15a-6 under the U.S. Securities Exchange Act of 1934, and may not be furnished to any other person in the United States. Each U.S. person that receives this document by its acceptance hereof represents and agrees that it: is a "major institutional investor", as so defined; and understands the whole document. Any such person wishing to follow-up any of the information should do so by contacting a registered representative of AKD Securities Limited. The securities discussed in this report may not be eligible for sale in some states in the U.S. or in some countries. Any recipient, other than a U.S. recipient that wishes further information should contact the company. This report may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose. 10