1. Mr. Basit Hassan
Executive Director
Hi- Tech Lubricants Limited

2. 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

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

4. OPTIONS EXPLORED
Debt ( TFC & Conventional)
Private Equity
IPO

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

6. 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

7. 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

8. 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 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

9. 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

10. 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

11. 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

12. 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

13. Thank you / Q&A