Al-Ghazi Tractors Ltd [AGTL] RAW DATA (Rs mn)

2004 2005 2006 2007

SALES Tractors Trading goods

6,777 7,764 9,102 9,164 59 88 46 46 6,836 7,852 9,148 9,210 93 8 101 ### 104 8 112 ### 120 6 126 ### 123 5 128 ###

Commission and discounts Sales tax

COST OF GOODS SOLD Manufactured goods Raw materials and components consumed Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan Royalty and technical fee Stores and supplies Insurance Depreciation Fuel, power and electricity Travelling, vehicle running and entertainment Repairs and maintenance Rent, rates and taxes Communication Freight charges Printing and stationery Others CoGM Cost of tractor donated Opening stock of finished goods Closing stock of finished goods Trading goods Opening stock Purchases Closing stock

4,775 5,816 6,845 7,001 105 121 132 140 1 2 1 1 2 2 2 2 95 67 126 85 50 70 100 112 1 1 1 1 9 9 10 20 13 14 17 20 6 5 5 5 6 8 14 9 1 1 2 2 1 1 1 1 1 1 1 1 1 2 2 2 5,068 6,121 7,258 7,401 28 47 5 47 5 10 5,096 6,075 7,300 7,396 6 45 52 11 40 ### 11 73 85 22 63 ### 22 82 104 16 88 ### 3 34 36 5 32 ###

DISTRIBUTION COST Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan Rent, rates and taxes

28 1 1 1

32 2 1

37 1 1 1

39 1 1

Repairs and maintenance Travelling, vehicle running and entertainment Depreciation/ amortisation Fuel, power and Electricity Communication After sales expense Dealers' convention Advertisement and promotion Printing and stationery Publicity Legal and professional charges Freight charges Insurance Others

1 6 3 1 2 5 2 1 1 1 53

6 3 1 2 11 1 1 1 61

6 3 1 2 9 3 2 1 65

6 4 1 1 10 1 1 1 67

AMINISTRATIVE EXPENSES Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan Consultance fee Travelling, vehicle running and entertainment Rent, rates and taxes Depreciation Repairs and maintenace Communication Advertising Printing and stationery Auditor's remuneration Legal and professional charges Publicity Insurance Donation Others

42 1 1 5 4 4 1 5 2 2 1 68

46 3 1 1 5 5 4 1 5 1 3 1 1 4 80

51 1 1 1 6 5 4 6 1 2 1 1 80

58 1 1 5 5 4 5 1 2 1 -

86

OTHER OPERATING INCOME Income from financial assets Return on deposit accounts 48 Return on COIs 34 Revaluation loss on investments at fair value through P&L account Gain on investments at fair value through profit and loss account 20 Dividend income 6 Exchange gain- net (1) Others 107 Income from investments in COIs- related parties Income from other assets Scrap sales Profit on disposal of fixed assets Others 2

185 70 1 1 257 37

480 66 4 1 550 4

466 60 17 543 -

7 4 1

7 2

6 3 2

12 1 3

12 121

9 303

10 565

16 559

OTHER OPERATING EXPENSES Workers' Profits Participation Fund Workers' Welfare Fund

80 28 108

88 34 122

103 39 142

103 39 142

FINANCE COST Interest on Workers' Profit Participation Fund Bank charges and commission Mark-up on security desposit Mark-up on short-term loan

3 2

5 2 8

2 3

3 3

6

TAXATION Current Deferred

520 (1) 519

577 (2) 575

645 36 681

640 7 647

FIXED ASSETS Opening cost Additions Disposals Closing cost Opeing depreciation Charge for the year Disposals Closing depreciation NBV Capital work-in-progress- civil work Intangible assets 382 30 175 237 171 15 21 165 72 13 85 237 6 9 234 165 15 8 173 61 98 159 234 206 8 432 173 17 8 182 250 2 252 432 23 6 449 182 28 6 204 245 245

STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools

2 4 3 9

4 9 3 15

2 6 8

5 6 10

STOCK IN TRADE Raw materials and components Finished goods- tractors Trading stock- spare parts and implements

637 11 648

671 47 22 740

723 5 3 731

695 10 5 709

TRADE DEBTS- considered good Secured Unsecured

1 7 8

1 6 7

1 5 6

1 23 24

LOANS AND ADVANCES- considered good Loans to employees Dealer car loans Advances to suppliers for goods and services

2 6 34 41

2 6 31 38

1 6 16 23

1 18 20

SHORT-TERM DEPOSITS AND PREPAYMENTS Security deposits Prepayments

6 4 10

7 4 11

1 3 3 1

ACCRUED MARK-UP Mark-up accrued on Certificates of investment(COIs) Deposit accounts with banks

9 15 24

22 63 85

48 198 246

45 182 227

OTHER RECEIVABLES Receivable in respect Due from Al-Futtaim Industries Company LLC- holding company Due from CNH Italia SpA-associated company Workers' profits participation fund Due from Staff Provident Fund Due from Employees Gratuity Fund Others

140

140

0.038 8.247 0.381 0.133 ###

-

-

-

1 2 3

REFUNDS DUE FROM THE GOVERNMENT Sales tax Special excise duty

180 180

382 382

260 260

167 16 184

INVESTMENTS Held to maturity- Certificates of Investments(COIs) Investments at fair value through profit and loss account

950 950

700 51 751

500 27 527

500 519 ###

CASH AND BANK BALANCES With banks on Current accounts

509 1,232

538

905

Deposit accounts Demand drafts in hand Cash in hand

1,525 3,759 4,590 3,289 17 26 14 190 ### ### ### ###

DEFERRED TAXATION Credit balances arising on account of: Accelerated tax depreciation allowances Gain on investments at fair value through profit and loss account Debit balances arising on account of: Deferred staff benefits- compensated absences Excess of accounting depreciation over tax depreciation Royalty payable -

6 4 13 23 -

34 34 6 15 21 12

34 7 40 6 14 21 19

TRADE AND OTHER PAYABLES Creditors Accrued liabilities Customers' advance payments Unclaimed dividend Deposits Taxes deducted at source and payable to statutory authority Workers' profits participation fund Workers' Welfare fund Royalty payable to CNH Global N.V. - associated company Others

71 124 6 271 205 272 246 935 3,517 3,200 2,220 8 12 13 230 17 23 22 20 4 11 4 5 80 86 103 102 30 34 39 41 29 36 44 41 3 2 2 2 ### ### ### ###

Long-term deposits Long-term loans Deferred staff benefits- compensated absences Deferred taxation Taxation payable Taxation receivable 13 19 21 97 7 18 23 105 17 78 1 18 26 -

2008

2009

10,201 15,858 41 105 10,242 15,963 129 5 134 ### 187 11 198 ###

9,014 11,522 162 180 2 () 2 2 96 153 162 166 1 1 20 21 28 29 5 3 18 21 2 2 1 1 1 1 2 2 1 9,516 12,105 10 1,025 1,025 83 8,501 13,046 5 27 31 2 29 8,530 2 73 75 3 73 ###

41 1 1

48 () 1

7 3 1 1 11 5 2 1

8 3 1 1 17 4 1 2 -

75

88

64 1 2 5 6 4 5 2 1 1 1 92

80 () 2 6 7 4 1 5 2 2 2 111

310 34 (7) 45 1 383 -

335 14 45 1 396 -

13 3 1

12 2 1

17 399

16 411

90 34 125

143 54 197

2 3

2 2

562 8 570

911 4 915

449 16 9 456 204 27 9 222 233 2 235

456 48 4 499 222 29 4 247 253 253

9 5 15

6 6 12

905 1,025 2 1,931

1,168 83 3 1,254

2 5 7

1 19 20

1 7 29 37

1 7 24 32

10 7 16

12 13

21 143 164

6 122 128

-

7 3 11

7 1 2 10

671 80 751

1,319 138 1,457

200 247 447

145 145

757

1,162

2,361 231 3,349

1,479 881 3,522

34 34 7 7 27

39 39 8 8 31

868 99 1,513 14 21 5 37 49 4 2,612

1,364 242 125 16 22 9 58 67 4 1,907

10 19 113

3 22 531

(Al-Ghazi Tractors Ltd [AGTL] ) (INCOME STATEMENT ) ((Rs mn) )

2004

2005

2006

2007

2008

2009

2010

(Sales - Tractors ) (Sales - Trading goods ) (Gross sales ) (Commisions/discounts ) (Sales tax ) (Net sales ) (Cost of goods sold ) (Gross profit ) (Gross profit margin ) (Distribution cost ) (Administrative expenses ) (Other operating income ) (Other operating expenses ) (EBIT ) (EBIT margin ) (Finance cost ) (Profit before taxation ) (Taxation ) (Profit after taxation ) (Net profit margin )

6,777 59 6,836 93 8 6,735 5,137 1,598 23.7% 53 68 121 108 1,490 22.1% 6 1,484 519 965 14.3%

7,764 88 7,852 104 8 7,739 6,137 1,602 20.7% 61 80 303 122 1,643 21.2% 8 1,635 575 1,060 13.7% 24.70 42.94

9,102 46 9,148 120 6 9,023 7,387 1,635 18.1% 65 80 565 142 1,913 21.2% 3 1,910 681 1,229 13.6% 28.63 42.94

9,164 46 9,210 123 5 9,081 7,428 1,653 18.2% 67 86 559 142 1,917 21.1% 3 1,914 647 1,267 14.0% 29.52 42.94

10,201 41 ### 129 5 ### 8,530 1,578 15.6% 75 92 399 125 1,686 16.7% 3 1,683 570 1,113 11.0% 25.93 42.94 1,713

15,858 15,439 105 103 ### ### 187 201 11 11 ### ### 13,119 12,547 2,646 2,783 16.8% 18.2% 88 85 111 138 411 420 197 205 2,661 2,774 16.9% 18.1% 2 2 2,659 2,772 915 970 1,744 1,802 11.1% 11.8% 40.61 42.94 2,690 41.97 42.94 2,806

(Earnings per share ) 22.47 (ordinary share outstanding(thousands) ) 42.94 (EBITDA )

1,505 1,658 1,930 1,946

2011

2012

2013

2014

16,024 16,825 17,666 18,549 107 112 118 123 ### ### ### ### 209 219 230 242 11 12 13 13 ### ### ### ### 13,180 13,840 14,532 15,258 2,729 2,866 3,009 3,159 17.2% 17.2% 17.2% 17.2% 88 93 97 102 143 150 158 166 435 454 475 497 202 212 223 234 2,730 2,865 3,006 3,155 17.2% 17.1% 17.1% 17.1% 2 2 2 2 2,728 2,863 3,004 3,153 1,098 1,002 1,051 1,103 1,630 1,861 1,953 2,049 10.2% 11.1% 11.1% 11.1% 37.96 42.94 2,766 43.34 42.94 2,904 45.48 42.94 3,049 47.73 42.94 3,201

Al-Ghazi Tractors Ltd [AGTL] STATEMENT OF FINANCIAL POSITION (Rs mn)

2004 2005 2006 2007 2008 2009 2010

Non-current assets Operating fixed assets Long-term loans Long-term deposits Deferred taxation Current assets Stores, spares and loose tools Stock-in-trade Trade debts Loans and advances Short-term deposits and prepayments Accrued mark-up Other recievables Taxation receivable Refunds due from the Govt Investments Cash and bank balances Total assets Share capital & reserves Share capital General reserve Unappropriated profit

85 13 21 120

159 7 23 189

252

245 1 246

235 10 246

253 3 256

281 3 284 11 1,523 13 61 15 254 15 1,417 145 5,063 8,518 ###

253

9 15 8 10 15 12 648 740 731 709 1,931 1,254 8 7 6 24 7 20 41 38 23 20 37 32 10 11 3 1 16 13 24 85 246 227 164 128 140 9 3 10 11 78 113 531 180 382 260 184 751 1,457 950 751 527 1,019 447 145 2,050 5,017 5,142 4,385 3,349 3,522 4,060 7,056 7,025 6,581 6,840 7,125 ### ### ### ### ### ###

195 215 215 215 215 215 215 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,421 1,857 2,335 2,637 3,213 4,205 5,148 2,616 3,072 3,550 3,851 4,428 5,420 6,363 19 19 18 18 17 12 30 18 19 38 19 27 47 22 31 53 38 38

Non-current liabilities Deferred staff benefits- compensated absences Deferred taxation Current liabilities Trade and other payables Taxation payable Total equity & liabilities Check

1,448 4,050 3,699 2,912 2,612 1,907 2,402 97 105 26 1,545 4,155 3,699 2,938 2,612 1,907 2,402 ### ### ### ### ### ### ### 1 1 1 1 TRUE 1 1

2011

2012

2013

2014

306 3 309

328 3 331

346 3 349

360 3 363

12 12 13 14 1,600 1,680 1,764 1,852 14 15 15 16 64 67 70 74 16 17 18 18 263 275 289 302 16 17 18 18 1,471 1,544 1,621 1,702 145 145 145 145 5,769 6,707 7,735 8,862 9,369 10,478 11,688 13,004 9,678 ### ### ###

215 1,000 5,920 7,134 40 40 2,504 2,504 9,678 TRUE

215 1,000 6,922 8,136 42 42 2,631 2,631 ### TRUE

215 215 1,000 1,000 8,016 9,206 9,230 10,421 44 44 2,763 2,763 ### TRUE 46 46 2,901 2,901 ### TRUE

Al-Ghazi Tractors Ltd [AGTL] STATEMENT OF CHANGES IN EQUITY (Rs mn) 2004 2005 2006 2007 2008 2009 2010 2011

SHARE CAPITAL Opening Balance Issue of Bonus shares Issue of Bonus shares - intrim Closing Balance GENERAL RESERVES Opening Balance Transfer from unappropraited profit Closing Balance UNAPPROPRIATED PROFIT Balance as at beginning of year Final Dividend Issue of bonus shares First Interim Dividend Second interim dividend Net Profit after Tax Adjustment Closing Balance NET RESERVES

195 195

195 20 215

215 215

215 215

215 215

215 215

215

215

215

215

1000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 ### ### ### ### ### ### ### ###

1,042 1,421 1,857 2,335 (390) (390) (537) (537) (20) (195) (215) (215) (215) (215) 965 1,060 1,229 1,267 1 ### ### ### ### ### ### ### ###

2,637 3,213 4,205 5,148 (322) (537) (859) (859) (215) (215) 1,113 1,744 1,802 1,630 ### ### ### ### ### ### ### ###

EPS DPS Payout ratio Cash Dividend Bonus shares

24.72 24.70 28.63 29.52 25.93 40.61 41.97 37.96 15.00 17.50 17.50 17.50 17.50 20.00 20.00 20.00 ### ### ### ### ### ### ### ### 300% 350% 350% 350% 350% 400% 400% 400% 10% -

2012

2013

2014

215

215

215

215

215

215

1,000

1,000

1,000 1,000

### 1,000

5,920 6,922 8,016 (859) (859) (859) 1,861 1,953 2,049 ### 8,016 9,206 ### 9,016 ###

43.34 45.48 47.73 20.00 20.00 20.00 ### 44.0% 41.9% 400% 400% 400% -

Al-Ghazi Tractors Ltd [AGTL] STATEMENT OF CASH FLOWS (Rs mn)

2004 2005 2006

2007

2008

CASH GENERATED FROM OPERATIONS Profit before taxation

1,484 1,636 1,910

1,914

1,683

Adjutments for: Depreciation/amortisation 15 15 17 28 27 Gain on disposal of fixed assets (4) () (3) (1) (3) Gain on disposal of investmets at fair value through P/L (20) (1) (1) (45) Dividend income (6) Revaluation loss on investments at fair value through P/L (50) (17) 7 Return on bank deposits (48) (185) (480) (466) (310) Return on COIs (36) (107) (70) (60) (34) Profit before working capital changes ### ### ### 1,398 1,326 Working capital changes: (Increase)/decrease in current assets Stores & spares Stock-in-trade Trade debts Loans & advances Short-term deposits & prepayments Other receivables Refunds due from the Govt.

(6) (92) 1 3 (1) 131 37 (202) (198) (167) (269) 11 (21) 44

7 9 1 15 8 8 122 171

(2) 22 (18) 3 2 (3) 76 81

(4) ### 17 (18) (15) (7) (567) ###

Increase/(decrease) in current liabilities Trade & other payables Working capital changes Cash generated from operations

715 2,598 (352) ### (85) 715 2,598 (352) ### (85) 517 ### (181) (923) ### ### ### ### 476 (576)

CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations 1,904 3,740 1,192 Increase in long-term deposits () () Income taxes paid (480) (569) (828) Increase in deferred staff benefits - compensated absences 1 (1) (1) ### ### 363 CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure Proceeds from disposal of fixed assets Purchase of investments Proceeds from sale of investments Return on bank deposits Return on COIs Decrease/(increase) in long term loans

476 (535) 1 (59)

(576) (701) 1 ###

(43) 19 6 56 38 33 (13) 96

(90) (111) 2 3 250 136 94 6 398 225 345 44 7 513

(21) (18) 2 3 (975) ### 500 1,709 483 349 62 58 () (9) 50 992

CASH FLOW FROM FINANCING ACTIVITIES

Dividends paid

(584) (601) (751) (749) (752) (584) (601) (751) (749) (752) 937 ### 125 (758) ### 1,113 2,050 5,017 5,142 4,385 ### ### ### 4,385 3,349

Net increase/(decrease) in cash & cash equivalents Opening cash & cash equivalents Closing cash & cash equivalents

2009

2010 2011 2012 2013 2014

2,659 2,772 2,728 2,863 3,004 3,153

29 (2) (45) (335) (14) 2,291

###

###

###

###

###

3 678 (13) 5 4 (1) (707) (31)

(706) (706) (737) 1,554

1,554 ### 3 227

(46) 3 (400) 747 355 30 7 696

(750) (750) 173 3,349 3,522

(Al-Ghazi Tractors Ltd [AGTL] ) (QUARTERLY INCOME STATEMENTS ) ((Rs mn) ) (Q1'07 ) (Q2'07 ) (Q3'07 ) (Q4'07 ) (Q1'08 ) (Q2'08 )

(Sales - Tractors ) (Sales - Trading goods ) (Gross sales ) (Commissions & discounts ) (as % of gross sales ) (Net Sales ) (Cost of goods sold ) (GP ) (GP margin ) (Distribution cost ) (Administrative expenses ) (Other operating income ) (Other operating expenses ) (EBIT ) (EBIT margin ) (Finance cost ) (PBT ) (Taxation ) (Effective tax rate ) (PAT ) (NP margin ) (Earnings per share ) (Ordinary share outstanding (thousands) )

2,223 11 2,234 28 1.2% 2,207 1,796 411 18.6% 19 22 148 36 483 21.9% 2 481 173 36.0% 308 13.9% 7.17 43

2,504 16 2,520 39 1.6% 2,481 2,031 450 18.1% 16 22 146 38 520 20.9%

1,984 4 1,987 26 1.3% 1,962 1,609 353 18.0% 19 20 131 31 415 21.1% 1 519 414 154 142 29.7% 34.3% 365 272 14.7% 13.9% 8.50 43 6.34 43

2,453 14 2,467 36 1.4% 2,432 1,992 440 18.1% 14 22 133 37 500 20.6%

1,947 1,947 26 1.3% 1,921 1,608 313 16.3% 18 24 113 26 358 18.6% 1 500 357 178 125 35.6% 35.0% 322 232 13.2% 12.1% 7.50 43 29.52 5.40 43

2,991 24 3,014 41 1.4% 2,974 2,419 554 18.6% 19 23 110 43 579 19.5% 1 578 187 32.3% 391 13.2% 9.11 43

Quarterly Earnings

14.00 12.00 10.00 8.00 6.00 4.00 2.00

Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q (Cost of goods sold ) (CoGM ) (Opening finished goods ) (Closing finished goods ) (Manufactured goods )

1,808 5 25 1,788

2,041 25 46 2,020

1,584 46 25 1,605

1,967 25 10 1,982

1,599 10 9 1,600

2,405 9 3 2,411

(Trading goods )

7 1,796

11 2,031

4 1,609

9 1,992

9 1,608

8 2,419

PRODUCTION Al Ghazi Tractor Millat Tractor TOTAL SALES Al Ghazi Tractor Millat Tractor TOTAL Sales - Tractors Cost of sales - Tractors Sales Price/tractor (Rs mn) Cost/tractor Cost/sales

6,354 7,257 5,671 7,069 5,455 7,545 7,836 7,597 5,903 6,214 6,914 8,485 14,190 14,854 11,574 13,283 12,369 16,030 6,331 7,179 5,738 7,146 5,458 7,565 7,791 8,091 5,725 6,321 6,708 8,542 14,122 15,270 11,463 13,467 12,166 16,107 2,223 1,788 2,504 2,020 1,984 1,605 2,453 1,982 1,947 1,600 2,991 2,411

0.351 0.349 0.346 0.343 0.357 0.395 0.282 0.281 0.280 0.277 0.293 0.319 80.4% 80.7% 80.9% 80.8% 82.2% 80.6%

(Q3'08 ) (Q4'08 ) (Q1'09 ) (Q2'09 ) (Q3'09 ) (Q4'09 ) (Q1'10 ) (Q2'10 )

3,014 4 3,018 34 1.1% 2,984 2,502 482 16.2% 24 23 105 37 503 16.9%

2,249 14 2,263 33 1.5% 2,229 2,000 229 10.3% 14 22 71 18 245 11.0% () 503 246 162 96 32.3% 38.9% 340 150 11.4% 6.7% 7.92 43 3.49 43 25.93

4,368 7 4,375 78 1.8% 4,297 3,742 555 12.9% 20 25 108 42 575 13.4% 3 573 198 34.6% 375 8.7% 8.72 43

4,331 42 4,374 54 1.2% 4,319 3,573 746 17.3% 31 29 134 56 765 17.7%

2,760 4 2,764 29 1.0% 2,736 2,222 514 18.8% 14 20 100 41 539 19.7% 1 765 538 261 189 34.1% 35.1% 504 349 11.7% 12.8% 8.14 43

4,399 52 4,451 37 0.8% 4,413 3,582 831 18.8% 24 37 70 58 782 17.7% (1) 783 268 34.2% 516 11.7% 12.01 43 40.61

4,062 8 4,070 48 1.2% 4,022 3,202 820 20.4% 21 30 68 58 778 19.4% 1 777 301 38.7% 477 11.8% 11.10 43

-

4,433 3,613 820 18.5% 23 31 82 58 790 17.8% 790 269 34.0% 521 11.8% 12.14 43

11.74 43

ings

7 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

2,508 3 14 2,496

3,004 14 1,025 1,994

2,715 1,025 3 3,737

3,542 3 1 3,544

2,671 1 456 2,215

3,177 456 83 3,550

3,304 83 192 3,196

-

6 2,502

6.535 2,000

5.143 3,742

29 3,573

6 2,222

32 3,582

7 3,202

-

7,000 7,550 6,696 8,937 6,763 7,955 8,319 8,393 5,216 6,948 8,251 9,370 8,408 10,901 10,532 10,336 12,216 14,498 14,947 18,307 15,171 18,856 18,851 18,729 6,970 4,992 9,285 8,870 5,615 8,962 8,036 8,895 5,333 6,414 8,141 10,346 7,151 11,957 9,827 11,145 12,303 11,406 17,426 19,216 12,766 20,919 17,863 20,040 3,014 2,496 2,249 1,994 4,368 3,737 4,331 3,544 2,760 2,215 4,399 3,550 4,062 3,196 7.4% 3.0%

0.432 0.450 0.470 0.488 0.491 0.491 0.505 0.358 0.399 0.402 0.400 0.395 0.396 0.398 82.8% 88.7% 85.5% 81.8% 80.3% 80.7% 78.7%

Al-Ghazi Tractors Ltd [AGTL] RATIOS 2004 2005 2006 2007 2008 2009

CAPITAL STRUCTURE Interest cover 264.4x 217.5x 691.8x 635.6x 615.6x Debt to equity - Interest bearing liabilities Debt to equity - Total liabilities 0.6x 1.4x 1.1x 0.8x 0.6x

### 0.4x

RETRUNS Tax burden 65.0% Interest burden 99.6% EBIT margin 22.1% Asset turnover 1.6x Financial leverage 1.6x Return on equity (ROE) 5-step Dupont analysis 36.9% Return Return Return Return on on on on

64.9% 99.5% 21.2% 1.1x 2.5x 37.3%

64.4% 99.9% 21.2% 1.2x 2.2x 37.1%

66.2% 99.8% 21.1% 1.3x 1.8x 34.2%

66.1% 99.8% 16.7% 1.4x 1.7x 26.9% 26.9% 6.7% 10.1% 16.0%

65.6% 99.9% 16.9% 2.1x 1.5x 35.4% 35.4% 8.8% 13.4% 24.1%

equity (ROE) 36.9% 37.3% 37.1% 34.2% capital employed (ROCE) - PAT 18.3% basis 9.3% 9.2% 8.5% capital employed (ROCE) - EBIT28.3% 14.3% 14.3% 12.8% basis assets (ROA) 23.1% 18.6% 16.9% 18.0%

PROFITABILITY MARGINS Gross profit margin EBITDA margin Net profit margin

23.7% 20.7% 18.1% 18.2% 22.3% 21.4% 21.4% 21.4% 14.3% 13.7% 13.6% 14.0%

15.6% 16.9% 11.0%

16.8% 17.1% 11.1%

GROWTH Sales growth EBITDA growth Net profit growth

-

14.9% 16.6% 10.1% 16.4% 9.9% 15.9%

0.7% 11.3% 0.8% -12.0% 3.1% -12.2%

56.0% 57.0% 56.6%

GENERAL RATIOS BVPS EPS DPS Payout Ratio

67.02 71.55 82.68 89.70 103.12 126.23 24.72 24.70 28.63 29.52 25.93 40.61 15.00 17.50 17.50 17.50 17.50 20.00 ### 70.86% 61.12% 59.29% 67.49% 49.25%

LIQUIDITY Current Ratio Quick Ratio

2.6 2.2

1.7 1.5

1.9 1.7

2.2 2.0

2.6 1.9

3.7 3.1

OPERATING RATIOS Total assets turnover Receivables turnover Inventory turnover

1.6x -

1.1x ### 8.8x

1.2x 1.3x 1.4x ### 597.7x 643.5x 10.0x 10.3x 6.5x

2.1x ### 8.2x

Payables turnover Debtor days Inventory days Creditor days Cash Conversion Cycle

-

59.9x 111.1x

###

21.1x

10.6x days ### ### ###

days days 1 days 1 days ### ### ### ### 6 days 3 days days ### ### ### ### ###

2010

2011

2012

2013

2014

### 0.4x

### 0.4x

### 0.3x

### 0.3x

### 0.3x

65.0% 99.9% 18.1% 1.7x 1.5x 30.6% 30.6% 7.6% 11.7% 22.3%

59.8% 99.9% 17.2% 1.6x 1.4x 24.2% 24.2% 6.0% 10.1% 17.6%

65.0% 99.9% 17.1% 1.5x 1.4x 24.4% 24.4% 6.1% 9.3% 18.2%

65.0% 99.9% 17.1% 1.5x 1.4x 22.5% 22.5% 5.6% 8.6% 17.1%

65.0% 99.9% 17.1% 1.4x 1.4x 20.9% 20.9% 5.2% 8.0% 16.1%

18.2% 18.3% 11.8%

17.2% 17.4% 10.2%

17.2% 17.4% 11.1%

17.2% 17.4% 11.1%

17.2% 17.4% 11.1%

-2.8% 4.3% 3.3%

3.8% -1.4% -9.5%

5.0% 5.0% 14.2%

5.0% 5.0% 4.9%

5.0% 5.0% 4.9%

148.20 166.16 189.50 214.98 242.70 41.97 37.96 43.34 45.48 47.73 20.00 20.00 20.00 20.00 20.00 47.66% 52.68% 46.15% 43.98% 41.91%

3.5 2.9

3.7 3.1

4.0 3.3

4.2 3.6

4.5 3.8

1.7x 911.6x 9.0x

1.6x ### 8.4x

1.5x ### 8.4x

1.5x ### 8.4x

1.4x ### 8.4x

9.6x days ### ### 3 days

10.7x days ### ### ###

10.8x days ### ### ###

10.8x days ### ### ###

10.8x days ### ### ###

2004 CAPACITY Al Ghazi Tractor Millat Tractor Total PRODUCTION Al Ghazi Tractor Millat Tractor Total SALES Al Ghazi Tractor Millat Tractor Local production Imports Total

2005

2006

2007

2008

2009

15,000 15,000 30,000 30,000 30,000 30,000 15,000 15,000 15,000 30,000 30,000 30,000 30,000 30,000 45,000 60,000 60,000 60,000 19,135 22,340 26,043 26,351 27,550 30,351 19,132 23,936 23,670 27,550 27,563 36,930 38,267 46,276 49,713 53,901 55,113 67,281 19,243 19,012 38,255 11,420 49,675 22,339 24,393 46,732 6,543 53,275 26,129 23,514 49,643 7,346 56,989 26,394 27,928 54,322 10,051 64,373 24,985 26,997 51,982 8,914 60,896 32,732 37,595 70,327 70,327

(Q1'07 ) (Q2'07 ) (Q3'07 ) (Q4'07 ) (Q1'08 ) (Q2'08 ) PRODUCTION Al Ghazi Tractor Millat Tractor TOTAL SALES Al Ghazi Tractor Millat Tractor TOTAL Sales - Tractors Cost of sales - Tractors Sales Price/tractor (Rs mn) Cost/tractor Cost/sales 6,354 7,257 5,671 7,069 5,455 7,545 7,836 7,597 5,903 6,214 6,914 8,485 14,190 14,854 11,574 13,283 12,369 16,030 6,331 7,179 5,738 7,146 5,458 7,565 7,791 8,091 5,725 6,321 6,708 8,542 14,122 15,270 11,463 13,467 12,166 16,107 2,223 1,788 2,504 2,020 1,984 1,605 2,453 1,982 1,947 1,600 2,991 2,411

0.351 0.349 0.346 0.343 0.357 0.395 0.282 0.281 0.280 0.277 0.293 0.319 80.4% 80.7% 80.9% 80.8% 82.2% 80.6%

2010 30,000 30,000 60,000 16,712 20,868 37,580 16,931 20,972 37,903 37,903

60% 55% 50% 45% 40% QoQ YoY 45% 50% 49% 48% 49% 52% 53% 49% 44% 50% 47% 45% 57% 44% 52% 45%

Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q

(Q3'08 ) (Q4'08 ) (Q1'09 ) (Q2'09 ) (Q3'09 ) (Q4'09 ) (Q1'10 ) (Q2'10 ) 7,000 7,550 6,696 8,937 6,763 7,955 8,319 8,393 5,216 6,948 8,251 9,370 8,408 10,901 10,532 10,336 12,216 14,498 14,947 18,307 15,171 18,856 18,851 18,729 6,970 4,992 9,285 8,870 5,615 8,962 8,036 8,895 5,333 6,414 8,141 10,346 7,151 11,957 9,827 11,145 12,303 11,406 17,426 19,216 12,766 20,919 17,863 20,040 3,014 2,496 2,249 1,994 4,368 3,737 4,331 3,544 2,760 2,215 4,399 3,550 4,062 3,196 -

0.432 0.450 0.470 0.488 0.491 0.491 0.505 0.358 0.399 0.402 0.400 0.395 0.396 0.398 82.8% 88.7% 85.5% 81.8% 80.3% 80.7% 78.7%

-

2'09 Q3'09 Q4'09 Q1'10 Q2'10

49%

45%

42%

44%

45%

Al-Ghazi Tractors Ltd [AGTL] ASSUMPTIONS 2004 2005 2006 2007

PLANT CAPACITY AND PRODUCTION Plant capacity -units Actual production - units Capacity utilization Sales - tractors YoY growth Sales price/tractor YoY growth Cost/tractor YoY growth Cost/Sales

15,000 15,000 30,000 30,000 19,135 22,340 26,043 26,351 ### 148.9% 86.8% 87.8% 19,243 22,339 26,129 26,394 16.1% 17.0% 1.0% 0.352 0.348 -1.3% 0.272 2.7% 0.348 0.2% 0.279 2.7% 0.347 -0.3% 0.280 0.3%

0.265

75.2% 78.2% 80.2% 80.7%

SALES Tractors Trading goods

6,777 59 0.9% 6,836

7,764 88 1.1% 7,852

9,102 46 0.5% 9,148

9,164 46 0.5% 9,210

Commission and discounts Sales tax

93 104 120 123 1.4% 1.3% 1.3% 1.3% 8 8 6 5 0.1% 0.1% 0.1% 0.1% 101 112 126 128 6,735 7,739 9,023 9,081

COST OF GOODS SOLD Raw material used in production Opening balance Purchases Raw material availabe for production as % of tractor sales Closing balance as % of raw material available Manufactured goods Raw materials and components consumed as % of tractor sales Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan

412 637 671 723 5,000 5,851 6,897 6,972 5,412 6,488 7,568 7,695 79.9% 83.6% 83.1% 84.0% 637 671 11.8% 10.3% 723 9.6% 695 9.0%

4,775 70.5% 105 1 2

5,816 74.9% 121 2 2

6,845 75.2% 132 1 2

7,001 76.4% 140 1 2

Royalty and technical fee Stores and supplies Insurance Depreciation Fuel, power and electricity Travelling, vehicle running and entertainment Repairs and maintenance Rent, rates and taxes Communication Freight charges Printing and stationery Others Other CoGM Other CoGM as % of tractor sales CoGM Opening stock of finished goods Closing stock of finished goods

95 50 1 9 13 6 6 1 1 1 1 293 4.3% 5,068 28 0.0% 5,096

67 70 1 9 14 5 8 1 1 1 2 305 3.9% 6,121 47 0.8% 6,075

126 100 1 10 17 5 14 2 1 1 2 413 4.5% 7,258 47 5 0.1% 7,300

85 112 1 20 20 5 9 2 1 1 2 400 4.4% 7,401 5 10 0.1% 7,396

Trading goods Opening stock Purchases

Closing stock

6 11 22 16 45 73 82 34 52 85 104 50 87.6% 96.5% 225.7% 108.9% 11 22 16 5 40 63 88 45 5,137 6,137 7,387 7,441

DISTRIBUTION COST Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan Rent, rates and taxes Repairs and maintenance Travelling, vehicle running and entertainment Depreciation/ amortisation Fuel, power and Electricity Communication After sales expense Dealers' convention Advertisement and promotion Printing and stationery Publicity Legal and professional charges Freight charges Insurance Others as % of net sales ADMINISTRATIVE EXPENSES Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan

28 1 1 1 1 6 3 1 2 5 2 1 1 1 53 0.8%

32 2 1

37 1 1 1 6 3 1 2 9 3 2 1 65 0.7%

39 1 1

6 3 1 2 11 1 1 1 61 0.8%

6 4 1 1 10 1 1 1 67 0.7%

42 1 1

46 3 1

51 1 1

58 1 1

Consultance fee Travelling, vehicle running and entertainment Rent, rates and taxes Depreciation Repairs and maintenace Communication Advertising Printing and stationery Auditor's remuneration Legal and professional charges Publicity Insurance Donation Others as % of net sales OTHER OPERATING INCOME Income from financial assets Return on deposit accounts Return on COIs Revaluation loss on investments at fair value through P/L Gain on investments at fair value through P/L Dividend income Exchange gain- net Others

5 4 4 1 5 2 2 1 68 1.0%

1 5 5 4 1 5 1 3 1 1 4 80 1.0%

1 6 5 4 6 1 2 1 1 80 0.9%

5 5 4 5 1 2 1 -

86 0.9%

48 185 480 466 3.2% 4.9% 10.5% 14.2% 34 70 66 60 3.6% 10.0% 13.1% 11.9% 20 1 4 17 6 (1) 1 1 108 257 551 543 2 37 4 -

Income from investments in COIs- related parties Income from other assets Scrap sales Profit on disposal of fixed assets Others as % of net sales

7 4 1 12 0.2% 121

7 2 9 0.1% 304

6 3 2 10 0.1% 565

12 1 3 16 0.2% 559

OTHER OPERATING EXPENSES Workers' Profits Participation Fund Workers' Welfare Fund as % of operating profit FINANCE COST Interest on Workers' Profit Participation Fund Bank charges and commission Mark-up on security desposit Mark-up on short-term loan

80 28 108 6.8%

88 34 122 6.9%

103 39 142 6.9%

103 39 142 6.9%

3 2

5 2 8

2 3

3 3

6

TAXATION Current Deferred Effective tax rate FIXED ASSETS Opening cost Additions as % of net sales Disposals Closing cost Opening depreciation Charge for the year Depreciation rate Disposals Closing depreciation NBV Capital work-in-progress- civil work

520 577 645 640 (1) (2) 36 7 519 575 681 647 35.0% 35.3% 33.8% 33.4%

382 30 0.4% 175 237 171 15 6.5% 21 165 72 13 85

237 6 0.1% 9 234 165 15 6.6% 8 173 61 98 159

234 206 2.3% 8 432 173 17 3.9% 8 182 250 2 252

432 23 0.3% 6 449 182 28 6.3% 6 204 245 245

STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools as % of net sales STOCK IN TRADE Raw materials and components Finished goods- tractors Trading stock- spare parts and implements Inventory days Inventory turnover TRADE DEBTS- considered good Secured Unsecured Receivable days Receivables turnover LOANS AND ADVANCES- considered good Loans to employees Dealer car loans Advances to suppliers for goods and services as % of net sales

2 4 3 9 0.1%

4 9 3 15 0.2%

2 6 8 0.1%

5 6 10 0.1%

637 11 648

671 723 695 47 5 10 22 3 5 740 731 709 ### ### ### 8.8x 10.0x 10.3x

1 7 8

1 6 7 days ###

1 1 5 23 6 24 days 1 days ### 597.7x

2 6 34 41 0.6%

2 6 31 38 0.5%

1 6 16 23 0.3%

1 18 20 0.2%

SHORT-TERM DEPOSITS AND PREPAYMENTS Security deposits Prepayments

6 4 10 0.1%

7 4 11 0.1%

1 3 3 0.0% 1 0.0%

ACCRUED MARK-UP Mark-up accrued on Certificates of investment(COIs) Deposit accounts with banks as% of COIs/deposit accounts OTHER RECEIVABLES Receivable in respect Due from Al-Futtaim Industries Company LLC- holding company Due from CNH Italia SpA-associated company Workers' profits participation fund Due from Staff Provident Fund Due from Employees Gratuity Fund Others as % of net sales REFUNDS DUE FROM THE GOVERNMENT Sales tax Special excise duty as % of net sales INVESTMENTS Held to maturity- Certificates of Investments(COIs) Investments at fair value through profit and loss account

9 15 24 1.0%

22 63 85 1.9%

48 198 246 4.8%

45 182 227 6.0%

140

8

-

-

140 2.1%

-

9 0.1%

0.0%

1 2 3 0.0%

180 180 2.7%

382 382 4.9%

260 260 2.9%

167 16 184 2.0%

950 950

700 51 751

500 27 527

500 519 1,019

CASH AND BANK BALANCES With banks on Current accounts Deposit accounts excess cash as % of sales Demand drafts in hand Cash in hand

509 1,232 538 905 1,525 3,759 4,590 3,289 22.6% 48.6% 50.9% 36.2% 2,033 4,991 5,128 4,194 17 26 14 190 2,050 5,017 5,142 4,385

DEFERRED TAXATION Credit balances arising on account of: Accelerated tax depreciation allowances Gain on investments at fair value through profit and loss account -

-

34 34

34 7 40

Debit balances arising on account of: Deferred staff benefits- compensated absences Excess of accounting depreciation over tax depreciation Royalty payable -

6 4 13 23 -

6 15 21 12

6 14 21 19

TRADE AND OTHER PAYABLES Creditors Payable days Payable turnover Accrued liabilities Customers' advance payments Unclaimed dividend Deposits Taxes deducted at source and payable to statutory authority Workers' profits participation fund Workers' Welfare fund Royalty payable to CNH Global N.V. - associated company Others as % of cost of sales

71

124 6 days 3 days 59.9x 111.1x

6 days ###

271 205 272 246 935 3,517 3,200 2,220 8 12 13 230 17 23 22 20 4 11 4 5 80 86 103 102 30 34 39 41 29 36 44 41 3 2 2 2 1,377 3,926 3,699 2,906 26.8% 64.0% 50.1% 39.1% 1,448 4,050 3,699 2,912

Long-term deposits Long-term loans Deferred staff benefits- compensated absences as % of cost of sales Deferred taxation Taxation payable Taxation receivable 13 19 0.4% 21 97 7 18 0.3% 23 105 17 0.2% 78 1 18 0.2% 26 -

OPERATING WORKING CAPTAL Stores & spares Stock-in-trade Trade debts Loans & advances Short-term deposits & prepayments Other receivables Refunds due from the Govt. (6) (92) 1 3 (1) 131 (202) (167) 7 9 1 15 8 8 122 171 (2) 22 (18) 3 2 (3) 76 81

(269) 11 (21) 44 37 (198)

Trade & other payables

715 715 517

2,598 2,598 2,432

(352) (1,004) (352) (1,004) (181) (923)

Net change in working capital

2008

2009

2010

2011

2012

2013

2014

30,000 30,000 30,000 30,000 30,000 30,000 30,000 27,550 30,351 30,351 30,000 30,000 30,000 30,000 91.8% 101.2% 101.2% ### ### ### ### 24,985 32,732 -5.3% 31.0% 0.408 0.484 17.6% 18.7% 0.340 0.399 21.4% 17.1% 0.509 5.0% 0.421 5.6% 0.534 5.0% 0.445 5.6% 0.561 5.0% 0.470 5.6% 0.589 5.0% 0.496 5.6% 0.618 5.0% 0.524 5.6%

83.3% 82.3% 82.8% 83.3% 83.8% 84.3% 84.8%

10,201 15,858 15,439 16,024 16,825 17,666 18,549 41 105 103 107 112 118 123 0.4% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 10,242 15,963 15,542 16,130 16,937 17,784 18,673 129 1.3% 5 0.0% 134 ### 187 1.2% 11 0.1% 198 ### 201 1.3% 11 0.1% 212 ### 209 1.3% 11 0.1% 220 ### 219 1.3% 12 0.1% 232 ### 230 1.3% 13 0.1% 243 ### 242 1.3% 13 0.1% 255 ###

695 905 1,168 1,421 1,475 1,548 1,626 9,224 11,786 12,114 12,524 13,168 13,826 14,517 9,919 12,690 13,282 13,945 14,642 15,374 16,143 97.2% 80.0% 86.0% 87.0% 87.0% 87.0% 87.0% 905 9.1% 1,168 9.2% 1,421 9.2% 1,475 9.2% 1,548 9.2% 1,626 9.2% 1,707 9.2%

9,014 11,522 11,861 12,470 13,094 13,749 14,436 88.4% 72.7% 76.8% 77.8% 77.8% 77.8% 77.8% 162 180 2 () 2 2

96 153 162 166 1 1 20 21 28 29 5 3 18 21 2 2 1 1 1 1 2 2 1 502 583 618 641 673 707 742 4.9% 3.7% 4.0% 4.0% 4.0% 4.0% 4.0% 9,516 12,105 12,479 13,111 13,767 14,455 15,178 10 1,025 83 86 90 95 100 1,025 83 86 90 95 100 104 10.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 8,501 13,046 12,476 13,107 13,762 14,450 15,173 5 2 3 3 3 3 3 27 73 71 73 77 81 85 31 75 73 76 80 84 88 75.7% 71.2% 71.2% 71.2% 71.2% 71.2% 71.2% 2 3 3 3 3 3 3 29 73 71 73 77 81 85 8,530 ### ### ### ### ### ###

41 1 1

48 () 1

7 3 1 1 11 5 2 1

8 3 1 1 17 4 1 2 -

75 0.7%

88 0.6%

85 0.6%

88 0.6%

93 0.6%

97 0.6%

102 0.6%

64 1 2

80 () 2

5 6 4 5 2 1 1 1 92 0.9%

6 7 4 1 5 2 2 2 111 0.7% 138 0.9% 143 0.9% 150 0.9% 158 0.9% 166 0.9%

310 335 368 382 401 421 442 13.1% 22.7% 12.0% 12.0% 12.0% 12.0% 12.0% 34 14 15 15 15 15 15 16.9% 9.7% 10.0% 10.0% 10.0% 10.0% 10.0% (7) 45 45 22 22 22 22 22 1 1 383 396 405 419 438 458 479 -

13 3 1 17 0.2% 400

12 2 1 16 0.1% 411

15 0.1% 420

16 0.1% 435

17 0.1% 454

18 0.1% 475

18 0.1% 497

90 34 125 6.9%

143 54 197 6.9%

205 6.9%

202 6.9%

212 6.9%

223 6.9%

234 6.9%

2 3

2 2

2

2

2

2

2

562 911 8 4 570 915 970 1,098 1,002 1,051 1,103 33.4% 34.3% 35.0% 40.3% 35.0% 35.0% 35.0%

449 16 0.2% 9 456 204 27 6.0% 9 222 233 2 235

456 48 0.3% 4 499 222 29 5.7% 4 247 253 253

499 60 0.4% 560 247 32 5.7% 279 281 281

560 60 0.4% 620 279 36 5.7% 314 306 306

620 60 0.4% 681 314 39 5.7% 353 328 328

681 60 0.3% 741 353 42 5.7% 396 346 346

741 60 0.3% 802 396 46 5.7% 442 360 360

9 5 15 0.1%

6 6 12 0.1%

11 0.1%

12 0.1%

12 0.1%

13 0.1%

14 0.1%

905 1,168 1,025 83 2 3 1,931 1,254 1,523 1,600 1,680 1,764 1,852 ### ### ### ### ### ### ### 6.5x 8.2x 8.2x 8.2x 8.2x 8.2x 8.2x

2 5 7 ### 643.5x

1 19 20 days ###

13 days ###

14 days ###

15 days ###

15 days ###

16 days ###

1 7 29 37 0.4%

1 7 24 32 0.2%

61 0.4%

64 0.4%

67 0.4%

70 0.4%

74 0.4%

10 7 16 0.2%

12 13 0.1% 15 0.1% 16 0.1% 17 0.1% 18 0.1% 18 0.1%

21 143 164 6.4%

6 122 128 7.9%

254 7.9%

263 7.9%

275 7.9%

289 7.9%

302 7.9%

-

7 3 11 0.1%

7 1 2 10 0.1%

15 0.1%

16 0.1%

17 0.1%

18 0.1%

18 0.1%

671 1,319 80 138 751 1,457 1,417 1,471 1,544 1,621 1,702 7.4% 9.2% 9.2% 9.2% 9.2% 9.2% 9.2%

200 247 447

145 145

145 145

145 145

145 145

145 145

145 145

757 1,162 1,997 2,587 3,365 4,227 5,178 2,361 1,479 3,066 3,182 3,341 3,508 3,684 23.4% 9.4% 20.0% 20.0% 20.0% 20.0% 20.0% 881 3,118 3,522 5,063 5,769 6,707 7,735 8,862 231 3,349 3,522 5,063 5,769 6,707 7,735 8,862

34 34

39 39

7 7 27

8 8 31

31

31

31

31

31

868 1,364 1,147 1,186 1,247 1,310 1,375 ### ### ### ### ### ### ### 21.1x 10.6x 10.6x 10.6x 10.6x 10.6x 10.6x 99 242 1,513 125 14 16 21 22 5 9 37 58 49 67 4 4 1,743 543 1,255 1,318 1,384 1,453 1,526 20.4% 4.1% 10.0% 10.0% 10.0% 10.0% 10.0% 2,612 1,907 2,402 2,504 2,631 2,763 2,901

10 19 0.2% 113

3 22 0.2% 531

3 38 0.3% -

3 40 0.3% -

3 42 0.3% -

3 44 0.3% -

3 46 0.3% -

(4) (1,223) 17 (18) (15) (7) (567) (1,817)

3 678 (13) 5 4 (1) (707) (31)

(269) 7 (29) (3) (5) 40 (258)

() (77) (1) (2) (1) (1) (54) (135)

(1) (80) (1) (3) (1) (1) (74) (160)

(1) (84) (1) (3) (1) (1) (77) (168)

(1) (88) (1) (4) (1) (1) (81) (176)

(85) (85) ###

(706) (706) (737)

511 511 253

102 102 (33)

127 127 (33)

132 132 (36)

138 138 (38)

(Al-Ghazi Tractors Ltd [AGTL] ) (WACC ) ((Rs mn) ) 2004 2005 2006 2007 2008 2009 2010 2011 2012

Interest bearing debt Equity Debt % Equity % Cost of Debt After-tax cost of debt Risk-free rate (10 yr PIB) Risk premium Beta Cost of equity WACC

2,616 3,072 3,550 3,851 4,428 5,420 6,363 7,134 8,136 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7.70% 9.39% ### ### ### ### ### ### ### 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 ### ### 13.8% 13.8% 19.6% 16.0% 17.6% 17.6% 17.6% ### ### 13.8% 13.8% 19.6% 16.0% 17.6% 17.6% 17.6%

2013

2014

9,230 10,421 0% 0% 100% 100% 0.0% 0.0% 0.0% 0.0%

14.18% 14.18% 7.50% 7.50% 0.45 0.45 17.6% 17.6% 17.6% 17.6%

(Al-Ghazi Tractors Ltd [AGTL] ) (VALUATION ) ((Rs mn) ) 2005

EBIT EBITDA Operating tax Decrease/(increase) in working capital Capital expenditure - net Free Cash Flow WACC NPV of Free Cash Flow Terminal Cash Flow Terminal Value Terminal growth rate Terminal WACC Estimated Terminal Cash Flow Terminal Value NPV of Terminal Value 17.6% 6-Jan-12

1,643 1,658 (579) 2,432 (89) ### 11.1%

3.0% 17.6% 2,058 14,133 8,719

DCF Valuation NPV of annual cash flows NPV of Terminal Value Enterprise Value Less: Net Debt Equity Value (Rs mn) No. of shares (mn) Equity Value per share Dividend

48% 52%

8,088 8,719 16,807 (3,522) 13,284 42.94 309.39 22.50

Fair ValueMarket price (Discount)/Premium to FV

286.89217.98 -24.0%

2006 2007

2008

2009

2010

2011

2012

2013

2014

1,913 1,917

1,686 2,661

2,774 2,806 (971) 253 (60) 2,027 16.0%31-Dec-10

2,730 2,766 (1,099) (33) (60) 1,574 17.6%31-Dec-11

2,865 2,904 (1,003) (33) (60) 1,808 17.6%31-Dec-12

3,006 3,049 (1,052) (36) (60) 1,900 17.6%31-Dec-13

3,155 3,201 (1,104) (38) (60) 1,998 17.6%31-Dec-14

1,930 1,946 1,713 2,690 (646) (641) (563) (912) (181) (923) ### (737) (111) (21) (18) (46) 992 361 (770) 995 12.8% 13.8% 13.8% 19.6%

2,358

1,578

1,541

1,378

1,233 2,058

2Q10(Net Sales ) (Cost of goods sold ) (GP ) (GP margin ) (Distribution cost ) (Administrative expenses ) (Other operating income ) (Other operating expenses (EBIT ) (EBIT margin ) (Finance cost ) (PBT ) (Taxation ) (Effective tax rate ) (PAT ) (NP margin ) (Earnings per share ) 4,433 3,613 820 18.5% 23 31 82 ) 58 790 17.8% 790 269 34.0% 521 11.8% 12.14

1Q10 Change QoQ4,022 3,202 820 20.4% 21 30 68 58 778 19.4% 1 777 301 38.7% 477 11.8% 11.10 10.2% 12.8% 0.1% 6.2% 3.0% 20.5% 0.9% 1.5% -88.7% 1.6% -10.7% 9.4%

9.4%