Mr. Basit Hassan Executive Director Hi- Tech Lubricants Limited

Hi-Tech Lubricants Limited - History of the Company 2015 2014 2013 Revenues have crossed PKR 5.4bn mark with a PCMO* market share of 13.6% and total market share of 7.5% respectively Further expansion planned to be financed from the proceeds of IPO 2015 Implemented oracle financials to improve MIS and performance and online sales via internet 2014 Backward integration, set-up a blending plant 2013 Partnership firm was taken over by a limited liability company 2011 Distribution network expanded to other cities and established regional offices in Karachi & Islamabad 2000 Commenced business as a partnership firm and established its distribution network in Lahore 1997 *PCMO – Passenger Car Motor Oil

Long Term Goals Expansion & Diversification Business Continuity Financial Discipline Corporate Governance Value Creation for Sponsors

OPTIONS EXPLORED Debt ( TFC & Conventional) Private Equity IPO

Challenges & Fear Dilution in ownership Interference & Disclosure Cost of IPO Trading company non Existent in PSX No formal valuation in lubricants sector

Unpin Company's’ Strong Market Positioning and potential ~8.2% overall market share Over 15% market share in PCMO In imported lubricants, HTL has a market share of 45% Key factors for the strong market positioning are: Product quality Import of finished lubricants from the SK Lubricants of South Korea Widespread distribution network (150+ distributors across Pakistan) Source: Hi-Tech Lubricants Ltd. Management

Hi-Tech Lubricants Limited Initial Public Offering of 29,001,000 Ordinary Shares Book Building 21,750,500 shares (75% of the Total Issue Size) at a floor price of PKR 37.0 per share Public Offer 7,250,500 shares (25% of the Total Issue Size) Lead Manager, Arranger & Book Runner

The Expansion Plan HTL plans to expand and increase its footprint in the retail service centres market Also plans to invest further in the blending plant (100% wholly owned subsidiary) At Floor Price of Rs 37 we were expected to raise Rs 1037 Million Raised 1800 Million @ Rs 62.5 strike Price Proceeds Utilization PKR Million Investment in Retail Network 1,050 Investment in 100% owned subsidiary 200  Total Requirement 1,250

HTL – Funds options and Future benefits Unlimited fund options available after listing: Excess Proceeds from IPO for expansions ( e.g. OMC) Better loan negotiation from banks Option for right issues Option for debt instruments ( TFC & SAKUK) Prestige Share-Holder Customers Focus on profitability and bringing efficiency HTL total lubricants sales increased significantly by 29% in 2016 as compared to the corresponding period last year. EPS Increased to Rs 5.31 from Rs 4.17

Investment in Vertical Integration – Oil Marketing Company Equity funds are usually invested in long term projects where profitability starts after fully operational status of project that take periods around 2-3 years. Project outlay of Rs 2.2 Billion in OMC and 225 fuel stations in 5 years with a mix of debt and equity of 40:60. The return on investment is around 24% and payback in 6-7 years. Potential Benefits of Investment in OMC 1 Increase market share and penetration through fuel segment 4 Volume growth and better utilization of excess working capital funds received in IPO 2 Ensure the real concept of one-stop for the end users 5 Increased customer loyalty 3 6 Operational Synergies and Savings in Future Marketing & Promotional Expenses Brand recognition and acknowledgement

Value for Sponsors With listing the Company’s overall worth increased from PKR 1,200 million to PKR 12,000 million Before IPO Sponsors capital worth : PKR 870 Million After IPO Sponsors capital worth : PKR 5,250 Million As of today Sponsors capital worth : PKR 9,309 Million

Regulatory and other requirements Maximum cooperation and guidance from regulators during listing in finalization of: Listing requirements of PSX and SECP Regulatory and compliance requirements Management, Board and Committees requirements Timely approvals and communication of deficiencies Facilitation for book building and public portion management

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