Case Studies: General Issues IPO Preparation & the role of Financial Advisor 0 Private & Confidential April 29, 2013IPO Summit Lahore 2013

Case Study: Family Owned Businesses Leading bridal wear boutique Team of trained professionals in design Distribution chain of exclusive salons, franchisee shops, premier fashion stores and boutiques Outlets throughout Pakistan and in several foreign cities of London, New York, New Delhi 1 Private & Confidential Issues Un-audited Accounts No tax return record Lack of budgeting Assets in personal names 3 different private limited companies Expectations IPO in 6 months

Case Study: Family Owned Businesses (Contd.) Recommendations – Audited financial statements Induct a reputable auditor – Assets Transfer – Assets Revaluation – Business Consolidation 3 into 1 – Target months period 2 Private & Confidential

Case Study: Corporate Governance 3 Private & Confidential Features Paid capital of nominal value Decent Reserves Directors Loan Multiple companies – Distribution, Procurement and manufacturing Loan defaults with positive EBITDA/EPS Expectations IPO in months High target price – Premium val. Corporate Governance and Consolidation Issues Confectionary Business Established sales and distribution network – Central and northern parts of the country/ME exports Strong Customer base – Leading Multinationals Spare Capacities

Case Study: Corporate Governance (Contd.) Recommendations: – Capital Base Issuance of bonus shares Conversion of loans – Consolidation of business – Clean loan repayment history – Investor Bias Industry-Sector-Company goes out of favor – Target 8 – 12 months 4 Private & Confidential

Case Study: Investor Appetite 5 Private & Confidential A leading software house and technology based solutions provider Well set for IPO Compelling Story US based revenues Sticky customers Consistent Growth and Returns Business Segments BPO Supply chain management Corporate Governance Diversified shareholding Strong board Professional management Top rated auditors Features Company has a history of over 25 years Diversified shareholding Minority shareholders looking for liquidity Expectations Target revenue multiple of 8 times and target price of PKR 75

Case Study: Investor Appetite (Contd.) Recommendations: – Investors Appetite Lack of appetite for Tech. stocks Listing at a lower premium at local exchange IPO vs. OFS – Market Selection Local vs. foreign markets – Wait for the right time for public offer 6 Private & Confidential

Taking a company public is not an event — it’s a journey. 7 Private & Confidential