Engro Powergen Qadirpur Limited

September 11, 2014

Deal Summary

EPQL Ownership Structure

84%

10%

5% 1%

Existing Structure

Engro Powergen Limited

Engro Corp

IFC

Employees

69%

25%

5% 1%

New Structure Engro Powergen Limited

Institutional Investors & General Public

IFC

Employees

Deal Summary

Engro Corporation Limited & Engro Powergen Limited Offerors

Ordinary Shares of the Engro Powergen Qadirpur Limited (“EPQL” / “Company”) Security

40.475 mn Ordinary Shares of the Company (12.5% of the total paid-up capital) Public Offer

22nd to 24th September 2014 Subscription Date

Issue Breakdown Private Placement - 40.475 mn Shares / Public Portion – 40.475 mn Shares

PKR 30.02 per share Price

Advisor & Arrangers Habib Bank Limited and Bank Alfalah Limited

Karachi Stock Exchange Limited Listing Avenue

161 Million

MMBTU

29 Million Barrels

of Oil $3*

Billion

Before Engro Powergen Qadirpur Limited…

…this flame had been burning gas for more than 15 years!

All this was being wasted!

*Based on current price of oil

Key Milestones

Sep 2006

Feasibility approved by

PPIB

Feb 2007

Tariff Determined by NEPRA

Jul 2007

Generation License

issued by NEPRA

Oct 2007

PPA & IA signed

Apr 2008

GSA signed

Oct 2008

Loan disbursement

27th March 2010

COD Achieved

Achieved Commercial

Operations Date three months ahead of target.

Unmatched completion in the

power sector

First project on foreign financing under 2002 policy

Debt = 75% Equity = 25%

Total Project Cost $194 Mn

Gross Capacity = 224.8 MW

Plant Configuration = 1GT + 1HRSG + 1ST

GSA with SNPGL and 25 Years

PPA with NTDC

Avg Billable Availability Factor =

99%*

Avg Load Factor = 90%*

*Excluding Rotor Event

VALUE PROPOSITION

Unique Source of

Fuel Supply

Among the Low Cost

Power Producers

Indexed and Predetermined

Returns

Strong Dividend

Yield

Experienced Management

Team

• Use of permeate gas which was previously flared

• Significantly lower risk of gas curtailment

VALUE PROPOSITION

Unique Source of

Fuel Supply

Among the Low Cost

Power Producers

Indexed and Predetermined

Returns

Strong Dividend

Yield

Experienced Management

Team • Gas based projects are one of

the cheapest sources of power

• High in NEPRA’s dispatch merit order (ranked 15th out of 76 - FY13)

VALUE PROPOSITION

Unique Source of

Fuel Supply

Among the Low Cost

Power Producers

Indexed and Predetermined

Returns

Strong Dividend

Yield

Experienced Management

Team • 15% return pegged to US Dollar

• Indexation provides hedging

against Interest rate & Inflation

• Variation in fuel price is pass through

VALUE PROPOSITION

Unique Source of

Fuel Supply

Among the Low Cost

Power Producers

Indexed and Predetermined

Returns

Strong Dividend

Yield

Experienced Management

Team

• Last 4 years average dividend of PKR 3.53 per share

• Equity returns will increase in

line with depreciation of PKR/US$

VALUE PROPOSITION

Unique Source of

Fuel Supply

Among the Low Cost

Power Producers

Indexed and Predetermined

Returns

Strong Dividend

Yield

Experienced Management

Team

• Hired top tier talent from the Industry

• Successfully conducted rotor repair on site, well within expected time

Financial Information

2.86 3.55

6.17

1.54

CY10* CY11 CY12 CY13 1H14

922 1,149

1,998

499

CY10 CY11 CY12 CY13 1H14

1,111

1,786 2,101

1,458 1,088

CY10 CY11 CY12 CY13 1H14

Total Dividend – PKR Mn

Dividend Per Share – PKR

Net Income – PKR Mn

Financial Highlights – PKR Million

Earnings Per Share – PKR

* CY10 was the first year of Operations

3.47

5.58 6.49

4.5

3.36

CY10 CY11 CY12 CY13 1H14

Questions and Answers