Pakistan IPO Summit - 2016

OBS Group AGP Limited Pharmaceutical Industry of Pakistan

Companies under OBS Group OBS Healthcare (formerly Organon Pakistan); OBS Pakistan (formerly Merck Sharp & Dohme of Pakistan); Schering Plough Pakistan; Aklima Clinical Research; AGP Limited; Aspin Pharma (J&J Pharma) Companies under OBS Group Established in 1963, OBS is one of Pakistan’s leading corporations in the healthcare segment OBS specializes in international partnerships and fostering strategic alliances with reputed international firms whose products touch the lives and well being of people around the world OBS provides full range of high quality professional services including clinical research, manufacturing, marketing, sales and distribution of pharmaceutical & consumer healthcare products It is currently ranked 11th pharmaceutical company out of 700+ multinational and local companies in Pakistan Strong presence in Pakistan, Afghanistan and Sri Lanka and in process of expansion to CIS Countries, Myanmar, Cambodia and Africa Annual Group Sales Turnover of ~ US$ 85million OBS Group Financial Highlights (PKR mn) 2012 2013 2014 2015 2016E Turnover 2,143 2,629 6,433 7,997 8,697 PBT 347 218 965 942 2,096 Total Assets 2,535 3,071 13,001 16,922 17,230 Equity 541 664 4,388 4,978 6,338 Areas of Expertise Anti-infectives Cardiology CNS Diabetes & Metabolic Disorders Gastroenterology Ophthalmology Respiratory Women Health (Infertility, HRT & Contraception) Vaccines

OBS Journey 2006 2007 2008 2009 2010 2014 2015 2016 Sales Revenue PKR 350mn 2016 E ~ PKR 8.7 bn Market Ranking 58th 11th OBS HEALTHCARE Dedicated for Organon legacy products Formerly a subsidiary of NV Organon, the Netherlands OBS PAKISTAN Dedicated for MSD legacy products Formerly a subsidiary of Merck & Co. Inc, USA OBS SRI LANKA A strategic alliance with Merck & Co. Inc. USA to acquire part of their portfolio for Sri Lanka Operations AGP Acquired in July 2014 International alliances include Eli Lilly, GSK, UCB and Alcon ASPIN PHARMA Acquisition of Janssen Brands and Johnson & Johnson Pakistan Facility. Acquired in July 2015 SANTEN PHARMA, JAPAN A strategic alliance with Santen (a global ophthalmic company) to represent them in Pakistan Launch in May 2016 2006 2007 2008 2009 2010 2014 2015 2016 OBS PHARMA Incorporation of OBS Pharma (Pvt.) Ltd, a sister concern focusing on branded generic and consumer health products AKLIMA CLINICAL RESEARCH A joint venture with Norton Audits Inc. USA for clinical research services and trial management in Pakistan SCHERING PLOUGH PAKISTAN Dedicated for Schering Plough legacy products Formerly a subsidiary of Schering Plough USA MYLAN (USA) A strategic alliance with MYLAN USA to promote their complete portfolio in Pakistan Launched in March 2016

Top International Brands in OBS Group xxx xxx AGPL xxx xxx xxx 44 Brands 44 Brands OBS Pakistan 11 Brands 11 Brands Aspin Pharma OBS Health Care

OBS Group AGP Limited Pharmaceutical Industry of Pakistan

OBS acquired AGP in July 2014 AGP Limited The company began operations in 1989 and has performed by leaps & bounds ever since AGP’s business comes from both the manufacturing, sale and marketing of products of international repute whilst marketing & manufacturing under its own brand OBS acquired AGP in July 2014 AGP’s product portfolio comprises of over 110 variants of 44 products, which contributed to a top line of PKR 3.7 billion in 2015 International Affiliations Historic Overview – Company Financials (PKR Millions) 2012 2013 2014 2015 2016E Turnover 2,699 3,110 3,338 3,748 4,250 Gross Profit 1,573 1,811 1,906 2,162 2,444 Profit after Tax 686 809 873 643 1,003 Total Assets 1,380 1,887 2,192 8,351 8,436 Equity 1,068 1,555 1,248 3,190 4,193 PKR 3.58 58% 24% Gross Profit Margin Net Profit Margin *Expected EPS 2016

AGP Product Portfolio AGP’s Portfolio consists of 44 brands products including 8 star products AGP pursues an aggressive product development strategy and has a robust product pipeline 3 new products were launched in 2015 6 new products have been launched in 2016 - 1 to be launched by end of Nov 2016 Agreement signed with Mylan in 2015 - 2 products launched in 2016 Product registration in Sri Lanka, Myanmar and Tajikistan in process At least six new launches planned in 2017 AGP’s Product Portfolio is divided into 5 Main Business Units GYNAE A Gynae / Orthopedic / Antibiotic Products GYNAE B Gynae, Pain management / Anti-Spasmodic PAEDS Antibiotics/ Anti Asthmatic drugs for children INTERNAL MEDICINE A General physician products, Gastro Enterology Products, Antiallergens INTERNAL MEDICINE B General physician products, Broad-Spectrum Antibiotics & Antiallergens Total Sales Volume (PKR Millions)

OBS Group AGP Limited Pharmaceutical Industry of Pakistan

Pharmaceutical Industry of Pakistan Industry Analysis Sales Exports 2014 2015 2016 2017f 2018f Pharmaceutical sales, USD bn 2.35 2.63 3.0 3.42 3.90 Sales, % of GDP 0.99% 1.02% 1.12% 1.19% 1.25% Sales, % of health expenditure 35.3% 34.8% 34.0% 33.0% 31.9% Health spending, USD bn 6.48 7.06 7.59 8.17 8.83 USD 3bn USD 200mn+ Market Share The domestic Pakistan market demonstrates more than 14.2% compound annual growth over the last five years comparing favorably to international growth rates Market Size 700+ registered companies, including 400 pharmaceutical manufacturing units; 25 multinationals Top Market players GSK, Abbott Laboratories, Getz , Sami, Searl, Sanofi Aventis ,Pfizer Laboratories, Novartis, Hilton, Ferozsons, OBS Domestically produced drugs Pain killers, anti-stress and anti-depressants, anti-infective, homeopathic Imported products Antibiotics, vaccines, analgesics, tranquillizers, drugs for treating cardiovascular diseases and cancer Import markets US, UK, Germany, Switzerland, Japan, Netherlands, France, China and Indonesia Regulator Drug Regulatory Authority of Pakistan Regional Analysis Approximate value - USD 2.3 billion Average manufacturing growth in volume over the past 5 years – 6.73% Over 700 registered pharmaceutical manufacturing units 400 are producing finished drugs 25 multinationals Just 0.4% of the budget is allocated to healthcare Private spending accounts for more than 75% of total healthcare expenditure Local industry meets more than 80% of the demand Drugs are manufactured under the strict quality standards & cannot be marketed without being registered Pakistan imports over 90% of raw material used to manufacture drugs Pricing is regulated by the Drug Regulatory Authority Source: Pakistan Pharmaceutical Manufacturers’ Association, Pakistan Economic Survey Regional Analysis (in USD) Pakistan India Bangladesh Total Pharmaceutical Market 3.0bn 21bn 1.5bn Growth Rate 14% 20% 12% International Ranking Value Wise 45 13 58 Pharmaceutical Companies 700 25,000 210 USFDA / MHRA Approved Plants 523 4 Pharmaceutical Exports >160mn >15,500mn 50mn Raw Material (API) Supply to own country 30% 70% 15% Source: IMS, Pakistan Pharmaceutical Manufacturers’ Association, Pakistan Economic Survey & BMI Research

Local Sector Performance The pharma sector performed very well in the past 5 years and this growth is expected to continue going forward due to: Increasing foreign investor interest in pharma stocks Diversion of focus to Consumer Healthcare Business Focus on exports/New product launches Population growth/increased per capita spending on health Valuations have improved significantly with the sector currently trading at a P/E multiple of 23.7 Stability of PKR vs. USD would help keep costs of raw materials low as most raw materials are imported Players are looking to diversify into Nutrition and Diagnostics products segment & adding them into the product portfolio mix for better margins Price Earnings Multiple Avg. 22.8 Price to Sales Multiple Avg. 3.44 Price to Book Multiple Avg. 6.75

Muhammad Kamran Mirza Head - Investment Banking Group JS Bank Limited 1st Floor - Shaheen Commercial Complex Dr. Ziauddin Ahmed Road Karachi-74200, Pakistan URL: www.jsbl.com UAN: (+92 21) 111-JS BANK (572-265) Tel: (+92 21) 3227 2534 Muhammad Kamran Nasir CEO JS Global Capital Limited 6th Floor - Faysal House Main Shahra-e-Faisal Karachi, Pakistan URL: www.jsgcl.com UAN: (+92 21) 111-574-111 Tel: (+92 21) 3279 9558