IPO SOPATIPO SOPATIncrease in capital in the alternate market by the Increase in capital in the alternate market by the issue of 522issue of 522 742 new shares at a price of 11 TND742 new shares at a price of 11 TNDissue of 522issue of 522 742 new shares at a price of 11 TND742 new shares at a price of 11 TND..

Subscription PeriodSubscription PeriodFrom the From the 33rdrd of December 2007 of December 2007 to the to the 1515thth of December 2007of December 2007

Co Arrangers

The Alternate Market

Transparency Access conditions

Listing Sponsor

Access mode

Same responsibilities

conditions

Less restrictive

Sponsor

Assist the company during the IPO

Increase in capitalresponsibilities

Prospectus Without requirement of benefits

during the IPO

Help the company to achieve its

Minimum of 10% of the company capital or minimum

Public information periodicity

benefits

Without requirement of 

to achieve its obligations during 2 years  

capital or minimum of    1 million TND on the public

Governanceq

seniority

No obligation to 

Make sure of the information given by the company

Minimum of 100 shareholders or 5 institutional

distribute dividend

IPO ObjectivesIPO Objectives

1. Finance an investment program

2 Improve the firm notoriety2. Improve the firm notoriety

3. Perform the corporate governancep g

4. Reduce of the company debt level

5. Reach efficient financing means for future developmentfuture development

Dates flashDates flash1987 1990 1996‐1997 20072006

Setting up of  Setting up of  Increase in capitalg pSOPAT

i i f h

g psubsidiaries:NUTRITOP et 

Increase in capital on the alternate market

Beginning of the activity and  transformation of

AVITOP

transformation of the company from Limited company to 

Cleaning up and restructuring

Inc. onerestructuring operations

White Meat MarketWhite Meat Market

others 28%Formal 

Informel Sector

Poulina 50%

SOPAT

28%Sector 

Industrial Slaughter 

Sector Traditional Slaughter65% SO

22%g

Halal35%

65%

Key figuresy gCapital 7,4 MTND

Staff 314

Production

Chicken 3 8 th tonsChicken 3,8 th tons 

Turkey 4 0 th tonsTurkey 4,0 th tons

Sophisticated prod. 1,3 th tons

Turnover 2006 29,6 MTND

Net Income 2006 1,81 MTND

2006’ turnover sharing out

Sophisticated Products14,1%Chicken

36,8%

Turkey49,1%

Added Value Chain descriptionAdded Value Chain description

Chicken and Turkeybrood hent

Table Fowlbreedings

SOPATStores and retailsSuppliers

liers Turkey and

chicken Public

Wholesalers

Feed

supp

chickenSlaughter

Public

Fast Food

Sophisticatedand otherproducts

RHFBreeders products

Hotels and groupsFattening chicken and turkey

Transport and Logistics

Sales Evolution (in MTND)

31,67

23 7926,39

29,58,

23,79

2004 2005 2006 2007 e

Turnover / important CustomersGroups3%

Franchised Stores4%

Others1%

MLIHA RAVY

Mobile Traders6%

MLIHA RAVYFOOD COURT

8%

Permanent privates46%

Stores15%

Sales Representative

17%17%

Certifications

Summarized Profit and Loss Account (in MTND)

In MTND

Years 2 004   2 005     2 006  

sales 23,8 26,4 29,6

Growth rate 10,9% 12,1%

Gross profit 6,8 5,1 6,4

Gross Margin 28,8% 19,5% 21,6%Gross Margin 28,8% 19,5% 21,6%

EBIT 1,4 0,8 1,9

EBIT Margin 5 8% 3 1% 6 4%EBIT Margin 5,8% 3,1% 6,4%

Net income 0,3 ‐0,5 1,8

Net Margin 1,30% ‐1,99% 6,11%

D l t t tDevelopment strategyThree axesThree axes

The consolidation The development of  The developmentof the chicken linefollowing the

pthe turkey line by the integration of the h l l h i

pof thesophisticated

slaughterregulation whichfixed rules to

whole value chain products with theintensification ofthe communicationfixed rules to

impose theindustrial slaughter

the communicationand marketingmeansg

« HALAL »

Fund Use

5 7MInvestment Plan2007‐2011 Debts reduction5,7M

3 0 M

2007 2011 ebts educt o

2 7 M Increase of the turnover

Strengthening of the negotiation 

3,0 M7,7 M2,7 M

Margins improvement

power 

dividend di t ib ti

7,7 Mwith the futurs distribution 

capacity

futurs      cash‐flows

shareholders Value Creationshareholders Value Creation

GovernanceGovernance

Information system Direction System

Setting up of an Auditcommittee

Two seats in the boardof directors for the

Implantation of an ERPpublic

software

A regular update of the

Setting up of anexecutive committee

A regular update of theproceedings Manuel

SWOT Analysis• Good competitive position on the Tunisian

market (2nd operator);

StrengthStrength• Heavily in debt company structure;

WeaknessWeakness

• Upmarket range of sophisticated products;• a good experience on the field;• Certification ISO 9001• Certification HACCP;

y p y ;• Overdrawn treasury• Absence of a marketing budget because

of the financial situation;• Disparity of the market share compared Certification HACCP;

• Perfect command control of the production process;

• Conformity to the standards of hygiene and international standards

• Disparity of the market share compared to the leader;

international standards

• Increase in demand for products with OpportunitiesOpportunities ThreatsThreats

• Increase in demand for products with strong margins (sophisticated products);

• Diversification on the line of products;• Development of the distribution landscape

in Tunisia;

Increasingly rules as regards quality;Norms and standards of hygiene increasingly intensified;Th t f th t di i in Tunisia;

• Improvement of the Tunisian standards of life;

• Export to the European market through the HALAL d t

Threat of the emergent diseases in poultry farming;

HALAL products;• Application of terms and conditions relating

to the poultries slaughter.

Business Plan hypothesisBusiness Plan hypothesis

Chicken Turkey Sophisticated 

Sales increase bySales increase by 10%

productsSales increase by10%, and than 5%

10%

Great margin at 27% Sales increase by 15%

Gross margin at17%

than at 30% Great Margin at 60%

The sale prices are stable at their 2006’level for the three product lines

Business Plan (i )(in MTND)

In MTND

Years 2 006   2007 e 2008 f 2009 f 2010 f 2011 f

lsales 29,6 31,7 35,0 38,8 42,9 46,7

Growth rate 12,1% 7,1% 10,6% 10,7% 10,7% 8,9%

Gross profit 6,4 7,6 8,5 10,0 11,2 12,4

Gross Margin 21,6% 24,1% 24,2% 25,9% 26,1% 26,5%

EBIT 1,9 2,1 2,8 3,8 4,6 5,4

EBIT Margin 6,4% 6,8% 8,0% 9,9% 10,7% 11,6%

Net income 1,8 1,1 2,5 3,6 4,5 4,9

Net Margin 6,1% 3,3% 7,1% 9,4% 10,6% 10,4% te: expect

f: Forecast

Cost of Equity CapitalCost of Equity Capital

The Beta used for the cost of Equity capital wascalculated on the basis of an arithmetic averagebetween Beta (equal to 0.8) and leveraged Beta (equalto 2.2);

The cost of equity capital will pass from 16.55% ine cost o equ ty cap ta pass o 6 55%2007 to 11.91% in 2011;

The weighted average cost of capital (WACC) willpass from 12 38% in 2007 to 11 93% in 2011pass from 12.38% in 2007 to 11.93% in 2011.

The Valuation Used MethodsThe Valuation Used Methods

Method of the net assets;Method of the net assets;

Method of the Goodwill;

Method of the discounted cash‐flows;

Method of Bates

Corporate Value per share in TNDCorporate Value per share in TND36,5%

17,3Bates

31,9%

16,2DCF

17,5%

13,3Average

12,0%

12,5GoodWill

11,0IPO Price

7,3Net Assets

Investment motivationAn interesting price that is represent a loss of 18%compared to the methods averagecompared to the methods average

The estimated IRR is very interesting for an horizon ofThe estimated IRR is very interesting for an horizon ofplacement from 3 to 5 years, it can exceed 32%

The transfer of the SOPAT, in a three years horizon, fromthe alternate market to the central one will allow thethe alternate market to the central one will allow thecompany shares to be more efficient and to reduce therisk of illiquidityrisk of illiquidity

This new capital issue will be the vehicle for SOPAT toThis new capital issue will be the vehicle for SOPAT toobey to Sharia Complaint

FiguresFigures• Forecasted Profit 2008 : 2 5 MDTForecasted Profit 2008 : 2.5 MDT

• PAY OUT: 50%

• Forecasted Dividend: 0.620 DT per share

• IPO price : 11 DT per share• IPO price : 11 DT per share

• Dividend yield of 5.6%,  higher than the market average

• ROE in 2008 19,28%, higher than the cost ofROE in 2008 19,28%, higher than the cost of equity capital

/• P/E 2008 : 8.8

Repartition Mode

5,7 5,7 MTNDMTND522522 742 742 SharesShares

1 71 7 MTNDMTND 3 03 0 MTNDMTND1 01 0 MTNDMTND1,7 1,7 MTNDMTND156 823 156 823 SharesShares

3,0 3,0 MTNDMTND274 439 274 439 SharesShares

1,0 1,0 MTNDMTND91 480 91 480 SharesShares

Orders Orders less than  less than  

Orders Orders more than more than 

Orders Orders between between 

10.000 10.000 SharesShares

45.000 45.000 SharesShares

10.000 10.000 and and 45 00045 00045.000 45.000 SharesShares

Proportionnal ModeProportionnal Mode