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2. 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

3. 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 926974 No. of consumers. HESCO headed by CEO and governed by Board of Directors. HESCO covered the area of 70458 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

4. Page No. 4 1. Average Annual Load Demand/Drawn 706 MW / 517 MW 2. Total Customers (Nos.) 933405 Nos. UrbanRural 450835 (48.3%) 482570 (51.7%) 3. Total Sanctioned Load (MW) 2287 MW 1463 MW824 MW 4. Transmission Lines  132 KV (K.M)  66 KV (K.M) 2981.83 K.M 2006.71 K.M 975.12 K.M No. of Circuits 72 No. of Circuits 26 5. No. of Grid Stations  132 KV  66 KV 71 49 ( 69 % ) 22 ( 31 % ) 6. No. of 11KV Feeders462 148 (32%) 314 (68%) 7. H.T Line (K.M) 26422.48 8. L.T Line (K.M) 14271.02 9. Distribution Transformers 25 KVA 50 KVA 100 KVA 200 KVA OTHERS 32967 16151 7574 2691 1605 4946 10.Manpower Sanction Strength Working Vacant Position 10279 9522 757 H E S C O P R O F I L E

5. Page No. 5 DESC. NO. OF CUSTOMERS % OF TOTAL CUSTOMERS % OF TOTAL CONSUMPTIO N % GROWTH OF CONSUMPTION Domestic76112081.5455.214.00 Commercial14173615.186.9310.16 Industrial B-4 07 No. B-3 217 No. B-2 2328 No. B-1 11103 No. 1.4621.501.12 Total 13655 No. Tube well159511.7112.67-2.55 Others9430.103.69-0.28 TOTAL933405100 2.73 CUSTOMERS STATISTICS HESCO

6. 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

7. Page No. 7 PROGRESSIVE LINE LOSSES 2012-13 VS 2011-12 2012-132011-12 Dec LOSSES Units Received Units Billed Lost%Age Units Received Units Billed Lost%Age T&D 4849.93524.21325.727.34678.53381.21297.327.7-0.4 Distribution 4678.03524.21153.824.74498.23381.21116.924.8-0.2 T&G4849.94678.0171.93.54678.54498.2180.33.9-0.3 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&D2635.41964.8670.525.42623.41912.6710.827.1-1.7 Distribution 2586.01964.8621.224.02537.51912.6624.924.6-0.6 T&G2635.32586.049.31.92623.42537.585.93.3-1.4 07/2013 TO 12/2013 VS 07/2012 TO 12/2012

8. 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 1.975 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). 6.14199 KM L.T line with overloaded distribution transformer.

9. 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. 4.39 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

10. Page No. 10 BILLING, PAYMENT & %AGE PAYMENT Category 07/2013 to 12/201307/2012 to 12/2012 INC. / DEC. BillingPayment%AgeBillingPayment%Age Private 15165.313687.690.312040.810747.689.31.0 Govt. 6971.03750.553.87030.54169.159.3-5.5 TOTAL 22136.317438.178.819071.314916.778.20.6 Figure in Million of Rs. Category 2012-132011-12 INC. / DEC. BillingPayment%AgeBillingPayment%Age Private 22349.719986.889.419864.116735.484.25.2 Govt. 11593.47572.265.312189.65418.544.520.9 TOTAL 33943.127559.381.232053.722153.969.112.1 2012-13 vs 2011-12 PROGRESSIVE 07/2013 TO 12/2013 Figure in Million of Rs.

11. Page No. 11 (Rs. In Million) HESCO CATEGORY CLOSING BALANCE AS ON 30.06.2013 BILLING 07/2013 TO 12/2013 PAYMENT 07/2013 TO 12/2013 CLOSING BALANCE AS ON 31.12.2013 BY DEPTT AT SOURCE TOTAL FED: GOVT: 1262.928882.765598.12465663.1241482.578 PROV: GOVT: 22380.0426088.285607.4952480.833088.32525381.824 TOTAL GOVT: 23642.9706971.0531204.6162545.833750.44626864.403 PRIVATE 15573.05315165.26413463.821223.7313687.55117049.055 G-TOTAL 39216.02322136.31714668.4382769.5617437.99843913.458 BILLING, PAYMENT AND RECEIVABLES FOR THE YEAR 2013-14 (UPTO 12/2013)

12. 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 14553.081511.47579.41392.2713.3517049.58 %AGE OF TOAL 85.4%8.9%3.4%2.3%0.1%100.0%

13. 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

14. Page No. 14 THANK YOU