Index & Volume Chart 43, ,000 42, ,000 43,100 42, ,000 42,750 43,000 42,700 50,000

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1 Sep-16 FFC ABL MCB UBL EFERT DGKC PIOC LUCK EFOODS HBL AKD Equity Research / Pakistan AKD Research research@akdsecurities.net Indices KSE-100 KSE-30 This w eek 42,750 21,881 Last w eek 42,787 21,980 Change -0.09% -0.45% Indices KMI-30 Allshare This w eek 72,121 30,462 Last w eek 72,453 30,410 Change -0.46% 0.17% Mkt Cap. PkRbn US$bn This w eek 8, Last w eek 8, Change 0.05% 0.04% Avg. Daily Turnover ('mn shares) This w eek Last w eek Change 8.59% Top-5 Volume Leaders Symbol Volume (mn) WTL : TRG : DSL : EPCL : KEL : (share mn) Volume (LHS) KSE-100 Index (Index) 53,000 51,000 49,000 47,000 45,000 43,000 41,000 39,000 37,000 35,000 33,000 Weekly Review KSE-100 index ended flat during the week, losing 37pts/0.1% to close at 42,750. Domestic politics continued to direct market sentiments where LHC s order to make the Model Town report public created pressure. Average daily traded volumes soared up by 8.59%WoW to mn shares with 1) WTL (72.59mn shares), 2) TRG (61.76mn shares), 3) DSL (58.48mn shares), 4) EPCL (34.92mn shares) and 5) KEL (29.18mn shares) leading the board. Other key newsflow impacting the market performance included: 1) PML-N winning in NA-120 bye elections, 2) MoF seeking to appoint financial advisors for issuance of Islamic Sukuks upto US$1bn, 3) UK reiterating its commitment to retain duty-free access for Pakistan, 4) increase in FDI by 2.5xYoY to US$457.2mn in 2MFY18, 5) IMF s representative stating that Pakistan can address fiscal and external account challenges on its own and 5) Senate standing committee demanding resignation of Finance Minister Ishaq Dar.Performance leaders during the week were: 1) FFC (7.12%WoW), 2) ABL (4.65%WoW), 3) MCB (4.42% WoW), 4) UBL (3.83%WoW) and 5) EFERT (3.38%WoW); while laggards included: 1) HBL (- 5.37%WoW), 2) EFOODS (-4.40%WoW), 3) LUCK (-3.51%WoW), 4) PIOC (-2.61%WoW) and 5) DGKC (-1.93%WoW). Foreign activity slacked down this week with a net inflow of US$0.377mn against US$27.7mn in the previous week. Index & Volume Chart Universe Gainers & Losers (Shrs'000) (Index) 8.0% 43, ,000 43,253 43, % 225,000 43, ,000 43, % 42, ,000 43,100 42, ,000 42,750 43, % 125,000 42, % 100,000 42, % 75,000 42,700 50,000 42, % 25,000 42, % - 42, Sep 19-Sep 20-Sep 21-Sep 22-Sep Ready Volume (LHS) KSE100 Index (RHS) Source: KSE & AKD Research Outlook With the result season nearing its end, future rollover week round the corner and lack of any positive triggers, we expect market to remain lackluster in the upcoming week. Events to track include: 1) developments on the model town report, 2) upcoming hearing of ex-pm (Nawaz Sharif) and FM (Ishaq Dar), and 3) upcoming monetary policy. 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-108 Find AKD research on Bloomberg (AKDS<GO>), firstcall.com and Reuters Knowledge Copyright 2017 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 9:32 10:04 10:37 11:09 11:41 12:13 12:45 13:17 13:49 14:22 14:54 15:26 9:32 10:04 10:37 11:09 11:41 12:14 12:46 13:18 13:50 14:23 14:55 15:28 9:32 9:57 10:22 10:47 11:12 11:37 12:02 12:27 12:52 13:17 13:42 14:07 14:31 14:56 15:22 9:32 9:56 10:20 10:43 11:07 11:31 11:54 12:18 12:42 13:05 13:29 13:52 14:16 14:40 15:04 15:28 9:17 9:45 10:14 10:42 11:10 11:39 12:07 12:35 13:03 13:31 14:00 14:28 14:56 15:25 15:53 16:22 AKD Securities Limited Sep 22, ,962 42,896 42,830 42,764 42,698 42,632 42,566 42,500 Sep 21, ,400 43,300 43,200 43,100 43,000 42,900 42,800 42,700 42,600 Sep 20, ,500 43,400 43,300 43,200 43,100 Sep 19, ,285 43,230 43,175 43,120 43,065 43,010 42,955 42,900 Sep 18, ,895 42,810 42,725 42,640 42,555 42,470 Source: KSE & AKD Research This Week s Daily Reports FFC: Fundamental weakness calls for earnings revision, (AKD Daily, Sep 22, 2017) Post release of detailed accounts for 1HCY17, we revisit our investment case for FFC on the basis of: 1) continuous decline in primary margins (GMs were down 3pptsYoY to 29.7% in 1HCY17) on account of lower retention prices, 2) subdued urea demand alongwith declining market share, 3) weak contribution from portfolio companies and 4) rising distribution cost. In this regard, we revise down our GM assumption by 2.9%/3.0ppts to 28.9%/29.8% alongwith downward revision in other income by 25%/27% for CY17F/CY18F. In tandem, incorporation of the aforementioned factors have led us to lower our CY17/CY18 earnings estimates by 26%/25% to PkR6.97/7.66. Consequently, our TP goes down by 19% to PkR96.9/sh (previously at PkR120.0/sh). FFC has lost 22%CYTD and is currently trading at a forward PE(x) of 10.65x. While fundamental pressures are likely to remain, we base our case on the dividend yield on offer (CY18F: 8.5%). Accumulate! Sector update: Pakistan Textile Aug'17, (AKD Daily, Sep 21, 2017) Gaining momentum, Pakistan's total exports during Aug'17 registered growth of 12.8% YoY/14.4%MoM to stand at US$1.86bn, where both textile (+16.5%MoM/+8.6%YoY) and food exports(+4.2%mom/+25.9%yoy) witnessed upward trend. A likely impact of the export package, textile exports during Aug'17 jumped up 8.6%YoY/16.5%MoM to US$1.17bn. Category wise, value added segment posted healthy growth of 16.4%YoY/18.4%MoM, clocking in at US$870mn, while low value added exports declined 9.1%YoY to US$302mn. On a cumulative basis, 2MFY18 textile exports stand 6%YoY higher at US$2.179bn (vs. US$2.059bn in 2MFY17), with value added exports up by 11.1%YoY to US$1,606mn, while low value added remained 6.5%YoY lower to US$573mn. Going forward, we expect textile exports to grow by 5-6%YoY in FY18 on likely support from export package and expected domestic currency depreciation. However, downward risks to the export sector exist in the form of bearish textile demand, end of unconditional export subsidy, and a negative EU GSP -PLUS status review. BAFL: Doing the right thing, (AKD Daily, Sep 20, 2017) BAFL's 1HCY17 earnings performance was laudable on a number of counts - the bank being the only one amongst our coverage cluster to post earnings growth of 14%YoY during the period. In this regard, factors like clawing down of expenses (+3%YoY) together with exceptional fee income growth (+19%YoY) and continuously improving asset quality (NPL ratio: 4.2%, coverage: 89%) helped maintain earnings momentum. In addition to, the bank has been aggressively building on its advances portfolio with ADR touching 60%+ while trimming its investment portfolio in order to support margins. Encouraged by these, we raise our CY17F/CY18F earnings assumptions for BAFL by 5%/4%YoY raising our TP to PkR48.4/sh (previously at PkR46.2/sh) in the process. Despite banking sector losing out 16% CYTD, BAFL's stock price has continued to stand its ground (CYTD return: 8.9%). BAFL's aggressive growth push alongwith attractive valuations (CY17F PB/PER of 0.98x/7.6x) makes it one of our top picks in the banking sector. PIOC & GWLC: 4QFY17 Result Preview, (AKD Daily, Sep 19, 2017) PIOC is expected to announce its 4QFY17 result later this month, where it is forecasted to post earnings of PkR668mn (EPS: PkR2.94), down 14%YoY. Lower earnings are expected to arise from significant 9.8pptsYoY decline in GM to 38.3% (avg. coal prices up 54%YoY in 4QFY17) despite 11%YoY increase in topline to PkR2.80bn (21%YoY growth in total dispatches to ~444k tons that including clinker sales of ~336k tons). On a cumulative basis, FY17 earnings are expected to rise by 22%YoY to PkR3.07bn (EPS: PkR13.51). Alongwith the result PIOC is expected to announce a final cash dividend of PkR3.5/sh, taking FY17 payout to PkR7.8/sh (payout ratio: 58%). Having lost 36%CYTD, CHCC currently trading at a FY17/ F18F PE of 6.7x/6.6x, where our Jun'18 TP of PkR160/sh implies a Buy stance (upside: 75%). Previewing 4QFY17F earnings for GWLC (expected later this month), we forecast NPAT to clock in at PkR460mn (EPS: PkR1.15), down 59%YoY/22%QoQ. Lower earnings are expected to arise from 1) 12%YoY/5%QoQ decrease in topline (11%YoY/6%QoQ decline in total 2

3 AKD Securities Limited This Week s Daily Reports cement dispatches), 2) expected 15.6pptsYoY decline in GM to 30.9% (avg. coal prices up 54%YoY in 4QFY17) and 3) 90%YoY decline in other income due to one-time gain of PkR308mn recorded in 4QFY16 on loan settlement. On a cumulative basis, FY17 earnings are expected to decline by 20%YoY to PkR2.16bn (EPS: PkR5.40). Alongwith the result GWLC is expected to announce a final cash dividend of PkR1/sh, taking FY17 payout to PkR2.5/sh (payout ratio: 46%). OGDC: FY17 Result Review and Conference Call updates, (AKD Daily, Sep 18, 2017) Pakistan's largest E&P company OGDC filed its FY17 results on 15th Sep'17 posting a 6.4% YoY jump in profitability to PkR63.8bn (EPS: PkR14.83) from PkR60.0bn (EPS: PkR13.94) in the preceding year. Upward movement in earnings can be traced to 1) higher Net sales clocking in at PkR171.8bn, up 5.5%YoY attributable to climbing Intl. oil prices coupled with enhanced output at ~15.9mnbbls. and 2) slight increase of 9% in other income to PkR16.0bn. The company declared PkR6/sh as total dividend during FY17. Discussing on the company affairs, the management stressed upon consistent exploratory efforts specially in high prospect areas of Balochistan highlighting that seismic teams are currently operating in 28 blocks. The company endeavors to drill 25 new wells in the upcoming year and updated on the progress of various developmental projects stating that KPD-TAY II has been completed while Nashpa-Mela and Soghri shall be tied in to production facilities during FY18. Tagging the above mentioned updates as major positives for the company, we reiterate our BUY stance on the scrip with a NAV based TP of PkR190/sh, providing 24.7% upside from last close with an FY18E dividend yield of 3.62%. 3

4 Sep-16 Sep-16 AKD Securities Limited Regional Valuations (2017) EPS Growth PE(x) Pakistan 18% 8.10 Indonesia 10% Malaysia 14% Philippines 6% Vitenam 12% India 25% China 13% % ROE Divd Yld Pakistan 16.4% 6.31 Indonesia Malaysia Philippines Vitenam India China Source: Bloomberg & AKD Universe PkR/US$ Trend TRJ-CRB Index Source: Bloomberg Source: Bloomberg Major World Indices Performance Country Bloomberg Code WoW CYTD Pakistan KSE100 Index 42,750 42, % -10.6% Srilanka CSEALL Index 6,427 6, % 3.2% Thailand SET Index 1,659 1, % 7.5% Indonesia JCI Index 5,912 5, % 11.6% Malaysia FBMKLCI Index 1,771 1, % 7.9% Philippines PCOMP Index 8,281 8, % 21.1% Vietnam VNINDEX Index % 21.4% Hong Kong HSI Index 27,881 27, % 26.7% Singapore FSSTI Index 3,220 3, % 11.8% Brazil IBX Index 31,369 31, % 26.6% Russia RTSSTD Index 13,256 13, % -10.0% India SENSEX Index 31,922 32, % 19.9% S&P SPX Index 2,501 2, % 11.7% DJIA INDU Index 22,359 22, % 13.1% UK UKX Index 7,273 7, % 1.8% Germany DAX Index 12,601 12, % 9.8% Qatar DSM Index 8,361 8, % -19.9% Abu Dhabi ADSMI Index 4,455 4, % -2.0% Dubai DFMGI Index 3,633 3, % 2.9% Kuwait KWSEIDX Index 6,849 6, % 19.2% Oman MSM30 Index 5,100 5, % -11.8% Saudi Arabia SASEIDX Index 7,326 7, % 1.6% MSCI EM MXEF Index 1,108 1, % 28.5% MSCI FM MXFM Index % 20.8% International Major Currencies Commodities Source: Bloomberg SPOT Chg +/- WoW CYTD Dollar Index % % USD/PkR % 0.53% USD/JPY % -3.80% EUR/USD % 14.09% GBP/USD % 10.64% AUD/USD % 10.38% NZD/USD % 5.13% CHF/USD % -5.23% CAD/USD % -8.88% USD/KRW 1,137 1, % -5.89% CNY/USD % -5.28% Source: Bloomberg SPOT Units WoW CYTD TRJ-CRB Points % -4.64% Nymex (WTI) US$/bbl % -6.20% ICE Brent US$/bbl % 1.73% N. Gas Henry Hub US$/Mmbtu % % Cotton USd/Pound % 0.13% Gold US$/Tr.Oz % 12.30% Sliver US$/Tr.Oz % 6.43% Copper US$/MT % 16.60% Platinum US$/Oz % 3.57% Coal US$/MT % 19.68% Source: Bloomberg 4

5 Sep-16 Sep-16 Sep-16 AKD Securities Limited Chart Bank Earnings Yield vs. T-Bill (12M) Differential Advance to Decline Ratio (%) FIPI Flows for the week LIPI Flows for the week (US$'000) 2, Ins, ,000 1, ,500 1, , Ind., 1.99 Co., 0.72 Bank/DFI, (500) (1,000) (1,500) (2,000) (1,016) (1,607) (1.00) (2.00) (3.00) (4.00) (5.00) NBFC, (0.61) M.Funds, (4.49) Others, (1.58) Prop. Trading, (3.27) AKD Universe vs. KSE-100 Index KSE-100 vs. MSCI-EM & MSCI-FM 36% 31% 26% 21% 16% 11% 6% 1% -4% -9% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% KSE10 0 MSCI EM MSCI FM KSE-All Share Index AKD Universe 5

6 Jul-07 Jun-08 May-09 Apr-10 Mar-11 Feb-12 Jan-13 Dec-13 Nov-14 Oct-15 Jul-07 Jun-08 May-09 Apr-10 Mar-11 Feb-12 Jan-13 Dec-13 Nov-14 Oct-15 AKD Securities Limited Market PER Chart 2017 (x) Source: AKD Research Market P/BVS Chart 2017 (x) Source: AKD Research 6

7 AKD Securities Limited AKD Universe Active Coverage Cluster s Valuations Stock Symbol Price TP Stance EPS(PkR) PE(x) PB(x) DY(%) Automobile and Parts UR Urder Review (PkR) (PkR) 16 17F 18F 16 17F 18F 16 17F 18F 16 17F 18F Indus Motors INDU 1, , Accumulate 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 Engineering Amreli Steels Ltd. ASTL Neutral Fertilizers Engro Corporation ENGRO Buy Engro Fertilizers Limited EFERT Buy Fauji Fert. Bin Qasim Ltd. FFBL Accumulate Fauji Fertilizer Company FFC Buy Fatima Fertilizer FATIMA Buy Food Producers Engro Foods Limited EFOODS Buy Oil & Gas Oil & Gas Development Co. OGDC Buy Pak Oilfields POL Reduce Pakistan Petroleum PPL Accumulate Hascol Petroleum HASCOL Buy Attock Petroleum APL Accumulate Pakistan State Oil PSO Buy Power Hub Power Co. HUBC Buy K-Electric Co. KEL 6.27 UR UR UR UR UR UR UR UR UR UR UR UR UR UR Kot Addu Power Company KAPCO Accumulate Fixed Line Telecommunication Pakistan Telecommunication PTC Buy (0.58) Personal Goods Nishat Mills NML Buy Banks Allied Bank Limited ABL Accumulate Bank AlFalah BAFL Accumulate Habib Bank Limited HBL Buy MCB Bank Limited MCB Accumulate National Bank of Pakistan NBP Buy United Bank Ltd UBL Buy Source: AKD Research 7

8 AKD Securities Limited 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 S e p- 17 1M 3M 6M 12 M CY TD High Low KS E Inde x 4 2, , ,782.0 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 n.a. n.a 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 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 Fixe d Line Te le c ommunic a tion Pakistan Telecommunication PTC P e rsona l Goods 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: KSE & AKD Research 8

9 AKD Securities Limited Economic Snapshot End Month Data Units T-bill 3M % M % M % PIB 10Y % KIBOR 6M % Discount rate % Policy rate % Inflation Headline inflation % Core inflation % Food inflation % (0.10) 1.3 External Indicators Export (PBS) US$ (mn) 1,762 1,727 1,780 1,638 1,801 1,805 1,627 1,912 1,631 1,866 Import (PBS) US$ (mn) 4,230 4,488 4,724 4,419 5,009 4,998 5,092 4,534 4,835 4,952 Trade Deficit (PBS) US$ (mn) (2,468) (2,761) (2,944) (2,781) (3,208) (3,193) (3,465) (2,622) (3,204) (3,086) Export (SBP) 1,841 1,860 1,783 1,769 2,061 1,766 1,954 1,865 1,828 2,104 Import (SBP) 3,785 4,109 4,196 4,017 4,305 4,108 4,633 5,054 4,720 4,262 Trade Deficit (SBP) (1,944) (2,249) (2,413) (2,248) (2,244) (2,342) (2,679) (3,189) (2,892) (2,158) Home Remittances US$ (mn) 1,616 1,584 1,488 1,417 1,694 1,539 1,867 1,840 1,542 1,955 Current Account US$ (mn) (836) (1,037) (1,202) (822) (562) (1,337) (1,651) (1,431) (2,051) (550) Banking Sector Deposits PkR (bn) 10,472 11,203 10,704 10,730 11,170 11,214 10,993 11,981 11,702 11,651 Advances PkR (bn) 5,251 5,572 5,468 5,477 5,697 5,777 5,936 6,176 6,028 6,035 Investments PkR (bn) 7,053 7,233 7,374 7,467 7,670 7,794 7,849 8,166 7,989 8,145 W. A. lending rate % n.a W. A. deposit rate % n.a Spread rate % n.a Public Finance Tax collection PkR (mn) 216, , , , , , , ,449 n.a n.a Direct taxes PkR (mn) 81, ,988 81,741 80, ,242 78, , ,210 n.a n.a Indirect Taxes PkR (mn) 135, , , , , , , ,239 n.a n.a Currency Fx Reserves US$ (mn) 23,383 23,200 22,242 22,072 21,572 21,019 21,190 21,402 20,223 20,387 USDPkR - Interban PkR/USD Source: SBP, PBS & AKD Research 9

10 AKD Securities Limited 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 Umer Pervez (693) Executive Director Research & Business Development Zoya Zaidi (603) Banks, Telecoms & Consumers Ali Asghar Poonawala (646) Power & Automobiles Waqas Imdad Ali (637) Fertilizer & Textile 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