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Page No. 2 PRESENTATIONTO PAKISTAN IPO SUMMIT ON 31 ST JANUARY 2014 AT KARACHI PRESENTATIONTO PAKISTAN IPO SUMMIT ON 31 ST JANUARY 2014 AT KARACHI

Page No. 3 OVER VIEW HYDERABAD ELECTRIC SUPPLY COMPANY LIMITED (HESCO) is a licensed company under Companies Ordinance 1984 and providing utility service of distribution / supply of electricity to No. of consumers. HESCO headed by CEO and governed by Board of Directors. HESCO covered the area of Sq.Km of 13 No. Districts of Sindh Province. The Distribution System of the HESCO consist of 03 Operation Circles, 14 Operation Divisions and 62 Nos. Operation Sub-Divisions. CirclesDivisions Hyderabad-I Latifabad/Garikhata/Qasimabad/T.A.Yar/Mirpurkhas/Digri Hyderabad-IIPhulleli/Kotri/T.M.Khan/Badin/Thatta NawabshahTando Adam/Nawabshah/Sanghar

Page No Average Annual Load Demand/Drawn 706 MW / 517 MW 2. Total Customers (Nos.) Nos. UrbanRural (48.3%) (51.7%) 3. Total Sanctioned Load (MW) 2287 MW 1463 MW824 MW 4. Transmission Lines  132 KV (K.M)  66 KV (K.M) K.M K.M K.M No. of Circuits 72 No. of Circuits No. of Grid Stations  132 KV  66 KV ( 69 % ) 22 ( 31 % ) 6. No. of 11KV Feeders (32%) 314 (68%) 7. H.T Line (K.M) L.T Line (K.M) Distribution Transformers 25 KVA 50 KVA 100 KVA 200 KVA OTHERS Manpower Sanction Strength Working Vacant Position H E S C O P R O F I L E

Page No. 5 DESC. NO. OF CUSTOMERS % OF TOTAL CUSTOMERS % OF TOTAL CONSUMPTIO N % GROWTH OF CONSUMPTION Domestic Commercial Industrial B-4 07 No. B No. B No. B No Total No. Tube well Others TOTAL CUSTOMERS STATISTICS HESCO

Page No. 6 Industrial Area Load 60 MW 23% of total Billing Kacha Area 1,000 Sq KM area 10 MW load 20% of total billing 10 sub-divisions Coastal Belt 3,000 Sq KM area 30 MW load 19% of total billing 8 sub-divisions Desert Area 13 MW load 9% of total billing 5 sub-divisions

Page No. 7 PROGRESSIVE LINE LOSSES VS Dec LOSSES Units Received Units Billed Lost%Age Units Received Units Billed Lost%Age T&D Distribution T&G Figure in MKWH 07/2013 to 12/201307/2012 to 12/2012 Dec LOSSES Units Received Units Billed Lost%Age Units Received Units Billed Lost%Age T&D Distribution T&G /2013 TO 12/2013 VS 07/2012 TO 12/2012

Page No. 8 1.High rate of theft of electricity through direct hooking. 2.Worst Law & order situation (Kidnapping, no frequent movement). 3.Attack on the officers / officials / offices during performance of duties adversely affected the progress. 4.Interference of various influential groups adversely effects the tempo of work. 5.Lack of cooperation by Law enforcing agencies. 6.Extra ordinary Village Electrification. REASONS OF HIGH LOSSES ii. ADMINISTRATIVE LOSSES i. TECHNICAL LOSSES KM Transmission line of 66 KV (33% of total) and 22 No. of 66 KV Grid Station (31% of the total) is existing in HESCO network which is the major cause of T&G losses & required immediate upgradation. 2.About 800 KM line of132 KV existing in the coastal belt which is deteriorated due to climate effect which also cause T&G losses hence needs replacement. 3.Overloading of Circuits Due to aging, pollution and costal climate effect conductor current carrying capacity also share T&G loss, which also required upgradation. 4.Overloading of Power Transformers. 5.Lengthy feeders (average length of 11KV line is 70 KM) KM L.T line with overloaded distribution transformer.

Page No. 9 1.Anti-theft Campaign has been launched by HESCO Teams as well as FIA for detection of theft and its recovery thereof. 2.Surprise checking of connections carried out by HESCO along with Police Force. 3.Weekly monitoring of theft detection No. high loss feeders of Hyderabad City has been selected for replacement of 800 Km negated L.T Bare Conductor with Aerial Bundle Cable (ABC) to eliminate the kunda culture, work in udnder process. 5.Installation of Automated Meter Reading (Smart Metering) is in process in Qasimabad Sub-Division under USAID Programme, work is under process. 6.Monitoring of Industrial consumer’s consumption is being carried out. 7.Monitoring of heavy loaded connections such as Petrol Pumps, CNG Stations, Bakeries, Hotel etc is being carried out by special Task Force. 8.Same to same reading cases / lock premises connection / AC connections are being checked through Task Force. 9.Prompt billing of new connections is being monitored. 10.Old / sluggish /defective meters are being replaced with static meters beside installation of TOU meters on connections having load above 5KW. STEPS TAKEN FOR REDUCTION OF %AGE LINE LOSSES

Page No. 10 BILLING, PAYMENT & %AGE PAYMENT Category 07/2013 to 12/201307/2012 to 12/2012 INC. / DEC. BillingPayment%AgeBillingPayment%Age Private Govt TOTAL Figure in Million of Rs. Category INC. / DEC. BillingPayment%AgeBillingPayment%Age Private Govt TOTAL vs PROGRESSIVE 07/2013 TO 12/2013 Figure in Million of Rs.

Page No. 11 (Rs. In Million) HESCO CATEGORY CLOSING BALANCE AS ON BILLING 07/2013 TO 12/2013 PAYMENT 07/2013 TO 12/2013 CLOSING BALANCE AS ON BY DEPTT AT SOURCE TOTAL FED: GOVT: PROV: GOVT: TOTAL GOVT: PRIVATE G-TOTAL BILLING, PAYMENT AND RECEIVABLES FOR THE YEAR (UPTO 12/2013)

Page No. 12 CATEGORY WISE RECEIVABLES (PRIVATE) ENDING DEC-2013 POINT NO. 10 Figures in Million KWH)HESCO CATEGORYDOMESTICCOMMERCIAL AGRI T/WELL INDUSTRIALOTHERRECEIVABLE AMOUNT IN MILLION %AGE OF TOAL 85.4%8.9%3.4%2.3%0.1%100.0%

Page No. 13 BALANCE SHEET AS AT 30 th JUNE (TENTATIVE) DescriptionUn-Audited EQUITY AND LIABILITIES:(Rs. In M) Shareholders' Equity (Net)(94,754) Deposit for Shares34,164 Non Current Liabilities16,223 Current Liabilities139,571 Total Equity & Liabilities95,204 ASSETS: Operating Assets17,359 Capital work-in-progress9,280 Long term advances30 Other Current Assets68,535 Total Assets95,204 HYDERABAD ELECTRIC SUPPLY COMPANY

Page No. 14 THANK YOU