Nourishing soils for a greener revolution

VisionTo be a world class manufacturer of fertilizers and ancillary products, with a focus on safety, quality and positive contribution to national economic growth and development. We will care for the environment and the communities we work in while continuing to create shareholders’ value.

Common Board Members

Rehman NaseemDirector

•AgraduatefromColumbiaUniversity,NY•CEOofAhmedFineTextle&RehmanAmirFabrics,DirectorofFazalClothandotherFazalGroupcompanies

Abdus SamadDirector

•Vastexperienceofequityportfoliomanagement•DirectorofvariousArifHabibGroupcompanies

Nasim BegDirector

•CharteredAccountant•40yearsofindustryandfinancialsectorexperienceindomesticandinternationalmarkets,CEOofArifHabibInvestments

Arif HabibChairman

• Over30yearsofexperienceasacorporateleader• ChairmanofArifHabibCorporation,ArifHabibLimited,

ThattaCement,ArifHabibDMCCDubai• RemainedPresident/ChairmanofKarachiStockExchange

sixtimesinthepast• ServedontheBoardofInvestment• MemberPrivatizationCommission&TariffReformsCommission

Fawad Ahmed MukhtarChiefExecutiveOfficer

• 27yearsasanexecutiveleaderofFatimaGroup• ChairmanofFatimaEnergyLimited&RelianceWeavingMills

Limited,DirectorofFatimaSugarMillsLimited,RelianceCommoditiesandothergroupcompanies

Fazal Ahmed SheikhDirector

• 23yearsasanexecutiveleaderingroupcompanies• CEOofFatimaEnergyLimited&RelianceWeavingMillsLimited

andDirectorofFazalClothMillsLimited,FatimaSugarMillsLimitedandthreeothergroupcompanies

Faisal Ahmed MukhtarDirector

• CEOofFatimaSugarMillsLimitedandDirectorofFazalClothMillsLimited,RelianceWeavingMillsLimitedand3othergroupcompanies

Muhammad Kashif HabibDirector

• DirectorofArifHabibCorporation,ThattaCementCompany,NooriabadSpinningMills,JavedanCementand2othergroupcompanies

Company Specific Board DirectorsFatima Fertilizer Company Limited

Syed Iqbal AshrafDirector

•AnomineeofNationalBankofPakistan•33yearsofbankingexperienceinUK,USA,MiddleEastandPakistan

Muhammad Jawaid IqbalDirector

•AnomineeofAlliedBankLimited•20yearsofexperienceinCorporateandInvestmentBanking

M. Abad KhanDirector

•ChemicalEngineer•45yearsofoperationalleadershipexperiencewithExxonChemicals,FaujiFertilizerandFaujiFertilizerBinQasim

Jorgen Nergaard GolDirector

•RepresentativeofHaldorTopsoeA.S.,Denmark•ChemicalEngineer•25yearsofexperienceinMarketingandSales

Arif HabibChairman

Fawad Ahmed MukhtarChiefExecutiveOfficer

DepletingsoilconditionsduetotheimbalanceduseoffertilizerscreatesmoregrowthpotentialforcompoundfertilizerslikeCAN,NP&NPK.Withtwofertilizerplantsintheagriculturebeltandproductioncapacityofmorethan2.5millionmetrictons,weservethefarmingcommunityofPakistan.

Withtheworldpopulationgrowingat2%wewillneedtofeed9billionpeopleby2050.Balancednutrientsandadvancementstowardsincreasingyieldswillbetheonlysolution.

Pakarab Fertilizers Limited

Sponsor’s Profile

• ArifHabibGroup(AHG)hasinterestsinvarioussectorsofeconomy• Engagedinthebusinessofinvestmentsinlistedandunlistedsecurities,commoditiesbrokerage,assetmanagement,cement,insurance,microfinance,etc.

Group Companies: ArifHabibCorporation ArifHabibLimited ArifHabibInvestmentsLimited ArifHabibREITManagementLimited ArifHabibDMCC AishaSteelMillsLimited Al-AbbasCementIndustriesLimited Pakistan(Private)EquityManagementLimited RozgarMicrofinanceBankLimited S.K.M.LankaHoldings(Private)Limited SweetWaterPakistanDairies(Private)Limited ThattaCementCompanyLimited

Javed AkbarHeadofProcurement•MechanicalEngineerandComputerScienceGraduate

•25yearsofexperienceincludingPhilips,Alcatel,MobilinkandPTCL

Shahid SaeedHeadofI.T•Masters-InformationTechnology•25yearsofexperiencewithNationalandInternationalTelecom,FinancialandUtilitySectors

Management TeamMuhammad ZahirDirectorMarketing FertilizerBusiness•MastersinBusinessAdministration•29yearsofexperiencewithICIPakistan

Ausaf Ali QureshiCompanySecretary FertilizerBusiness&Energy•CharteredAccountant•27yearsofexperienceincluding20yearswithBristolMyersSquibb

Qadeer Ahmed KhanDirectorOperations PakarabFertilizersLimited•MSinPetrochemicalsandHydrocarbons•32yearsofexperiencefromEngroChemicalsandEngroPolymers

Arif-ur-RehmanDirectorOperations FatimaFertilizerCompanyLimited•ChemicalEngineer•29yearsofexperiencewithFaujiFertilizer,FaujiFertilizerBinQasim&ICIPTA.

Arif Hamid DarChiefFinancialOfficer PakarabFertilizersLimited•CharteredAccountant•14yearsofexperiencewithHondaAtlasCars(Pakistan)Limited

Asad MuradHeadofInternalAudit• CharteredAccountant• 12yearsofexperiencewithHonda

Atlas(Pakistan)Limited

Iftikhar Mahmood BaigChiefFinancialOfficer FatimaFertilizerCompanyLimited•FellowmemberofICSandM•23yearsofexperienceinStrategicPlanningandFinancialManagement

MissionOur mission is based on purpose which reinforces our position as a driving force in national agriculture industry. It thrives on the goals we have set for ourselves:• Tobethepreferredfertilizercompanyforfarmers,businessassociatesandsuppliersbyprovidingqualityproductsandservices.• Toprovideemployeeswithanexciting,enablingandsupportiveenvironmenttoexcelin,beinnovative,entrepreneurialinan

ethical and safe working place based on meritocracy and equal opportunity.• Tobearesponsiblecorporatecitizenwithaconcernfortheenvironmentandthecommunitieswedealwith.

• Establishedin1936withtradingofcommodities• Exceptionalprogressinthelastthreedecades• Diversifiedintomanufacturingofsugar,textileandfertilizers• LargestexporterofmolassesandimporterofDAP• Furtherportfoliodiversificationintheenergysector

Group Companies: FatimaEnergyLimited FatimaSugarMillsLimited FazalClothMillsLimited RelianceCommodities(Private)Limited RelianceWeavingMillsLimited PakistanMiningCompanyLimited AirOne(Private)Limited

•GlobalfertilizertrendsfavorPhosphateandPotashusage•InPakistan,growthinP(Phosphate)&K(Potash)basedfertilizersisessential

Fertilizer Trends• TheFertilizeruseinPakistancontinuestogrowsteadily

• Secondandthirdgenerationsoffarmersareusingfertilizerssinceintroductionoflocalfertilizerindustry

• AccordingtoNFDC90%ofthefarmershaveadaptedtofertilizerusage

• PakistanispredominantlyaNitrogen(Urea)market

• Ureausehasincreasedsteadilysinceitsintroduction

• ThegrowthinPhosphate(P)hasbeeninconsistent

• UsageofPotash(K)hasbeennegligible

• Governmentisactivelyencouragingbalanceusageoffertilizersaspersoilrequirement

22%Phosphate

77%Nitrogen

1%Potash

N, P, K usage ratio in Pakistan

N P K

Actual 0.90 0.21 0.008Desired 1 0.5 0.25

International Fertilizer Consumption*

Country Kg/Ha of Arable Land

Netherlands 1,226Egypt 527Japan 344France 207Germany 194Italy 184USA 171Pakistan 166India 142

Source: Food & Agriculture OrganizationWorld Development Indicators (World Bank)

Population• TheestimatedpopulationofPakistanisover180million

• Thepopulationgrowthratenowstandsatalmost2%

• 6thlargestcountrybypopulation

Agriculture• ThemainstayofPakistan’seconomy

• Accountsfor21percentoftheGDP

• Employs45percentofthetotallaborforce

• Contributestogrowthasasupplierofrawmaterialstoindustry

• Marketforindustrialandchemicalproducts

• Comprises60percentofPakistan’sexportearnings

• About67percentofthepopulationliveinruralareasandaredirectlylinkedwithagriculture

• Thesectorgrowthisprojectedatanaveragerateof4percentperannum

• Thecropsectoraccountsforabout60percentofagriculture’scontributiontotheGDP

Land• Totallandareaofnearly80millionhectares

• Approximately22millionhectaresunderpermanentcultivation

• Amongstthehighestcroppedareaproportionintheworld(27%ofgeographicalarea)

• About18.8millionhectare(85%)ofthecultivatedlandisirrigated,theremainderisrain-fed

Average Yield (kg / hectare) of different crops

Wheat Cotton Rice Sugarcane

World 3,086 2,099 4,309 71,510India 2,802 1,206 3,370 68,877China 4,762 3,906 6,556 73,114Egypt 6,006 2,333 9,731 121,136USA 3,018 2,250 7,672 73,765Brazil - 3,757 4,229 79,709Pakistan 2,451 2,046 3,520 51,494

Pakistan Facts

Growth Potential – Our Advantage• NFDC,FAOandIMPHOShasbeendemonstratingandpromotingthe

balanceduseofplantnutrients

• MainfocushastraditionallybeenonN(Urea),resultinginimbalancedandinefficientapplication

• Nutrient-deficientsoilconditionunderscoreneedforsignificantlyincreasedPhosphate(P)andPotash(K)usage

• Thesoilsarepredominantlyalkaline,ideallysuitableforNPusagewhichishighlyacidic

• Thepotentialimpactofbalancedfertilizeruseoncropproductionishigh

• 50%adoptionofbalancedfertilizerusemayresultinanincreaseof30%ofnationalcropproduction–financialgainofoverUSD1.2billion

• Trendtowardsourportfoliomix

Product Portfolio – “Sarsabz”• Largestmanufacturerandmarketerof“NitrogenandPhosphate”fertilizersinPakistan

• Workingforproviding“balancednutrition”tothecrops

• Providesnutrientsforallcropsfortherightstageofgrowth

Agronomic Requirement and Off-take Vis-à-vis Production

• CANPlant –420,000MTPA(Commissioned–November2009)

• AmmoniaPlant –500,000MTPA(Commissioned–February2010)

• UreaPlant –500,000MTPA(Commissioned–March2010)

• NitricAcidPlant –500,000MTPA(Commissioned–April2010)

• NPPlant –360,000MTPA(tobecommissioned–May2011)

• UreaPlant –92,400MTPA

• NPPlant –304,500MTPA

• CANPlant –450,000MTPA

• NitricAcidPlant –455,500MTPA

• CO2Plant –63,360MTPA

• AmmoniaPlant –316,800MTPA

CalciumAmmoniumNitrate(CAN) Nitrophos(NP) Urea Nitrogenousfertilizerwithhighefficiency Balancedcombination–Phosphate&Nitrogen World’smostcommonNitrogenfertilizer

Comparison of Yield Increase – National Crop Production

Yield(kg/ha) Percentage

Crop NOnly BalanceUseofN.P.K Increase

Wheat 2,521 4,120 63%

Rice(Basmati) 2,800 4,494 60%

Maize 2,110 5,084 140%

Sugarcane 56,515 126,334 123%

Source: National Fertilizer Development Corporation, Food and Agriculture Organization and IMPHOS

1961 1970 1980 1990 2000 2010 2015

1,600

1,400

1,200

1,000

800

600

400

200

-

Off Take

Production

AgronomicRequirement

P“000”

Nutrients Tons

1961 1970 1980 1990 2000 2010 2015

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

-

Off Take

Production

AgronomicRequirement

N“000”

Nutrients Tons

Our Financial Advantage• ThecombinedmanufacturingcapacityofFatimaFertilizerandPakarabFertilizersismorethan2,500,000metrictonsperannum

• ThistranslatesintoanannualcombinedturnoverofmorethanUSD600million

• FullyintegratedanddiversifiedNitrogen,PhosphateandPotashfertilizerproducer

• ProjectcostofUSD750million

• LargestfertilizercomplexinPakistan

• 947acresforplantandtownship

• Dedicatedgassupply(110MMCFD)underpreferentialrateofUSD0.70MMBTUthrougha10yearrenewablecontract

• 4finalproductlines:Urea,CAN,NP&NPK(AllexceptNPKinproduction)

• FinancedwithaLongTermDebt/Equityratioof55:45

Name Country Price/Earnings Price/ Book EV/EBITDA

PotashCorp.ofSaskatchewan Canada 19.26 7.52 20.62ChinaBlueChemicalLtd. China 20.37 2.59 12.53ChambalFertilizers&ChemicalsLtd. India 9.10 2.09 8.16SaudiArabianFertilizerCompany SaudiArabia 13.40 6.50 15.58J.L.MorisonSon&Jones SriLanka 12.90 1.95 6.72MosaicCo. UnitedStates 19.92 3.62 14.29AgriumInc. UnitedStates 12.62 2.76 10.56CFIndustriesHoldingInc. UnitedStates 10.81 2.54 13.80YaraInternationalASA Norway 8.63 2.35 8.95

FaujiFertilizerCompanyLtd. Pakistan 9.56 7.84 5.34EngroCorporationLtd. Pakistan 17.82 2.75 14.52FaujiFertilizerBinQasimLtd. Pakistan 6.42 3.99 5.42DawoodHerculesChemicalsLtd. Pakistan 12.54 1.17 6.34FatimaFertilizerCompanyLtd. Pakistan 10.95 0.83 6.90

Note: Current year estimates on the basis of 2011 earnings Source: Bloomberg EV/EBITDA on the current market price

* Commercial Operation Date

Gross profit margin

Company CY2011E CY2012F

FatimaFertilizerCompanyLtd. 57% 59%FaujiFertilizerCompanyLtd. 45% 45%EngroFertilizersLimited 47% 46%FaujiFertilizerBinQasimLtd. 22% 22%Average 43% 43%

Net profit margin

Company CY2011E CY2012F

FatimaFertilizerCompanyLtd. 16% 19%FaujiFertilizerCompanyLtd. 26% 26%EngroFertilizersLimited 9% 11%FaujiFertilizerBinQasimLtd. 9.6% 10.5%Average 15% 17%

Fertilizer Companies Comparison Domestic Peer Comparison

USD million 2010 A 2011F 2012F

Rate of exchange (Rs/US$) 85.00 90.00 92.70

Trial Run Trial Run Post COD*

TotalSalesRevenue 83.31 93 156.10 316.48CostofGoodSold 46.55 42 66.38 129.89GrossProfit 36.76 51 89.72 186.59EBIT NA NA 82.56 172.67ProfitBeforeTax NA NA 38.92 89.60ProfitAfterTax NA NA 24.36 59.02GrossProfitMargin 55% 57% 59%NetProfitMargin NA 16% 19%InterestCoverage NA 1.99 2.26TotalInterestCharges 72.35 42 76EBITDA 32.49 90.84 188.32

Financial Snapshot

2005 2006 2007 201020092008

Turnover

25,000

20,000

15,000

10,000

5,000

-

5,954

9,102

16,70618,248

7,069

18,887

Profit After Tax

2005 2006 2007 201020092008

8,000

6,000

4,000

2,000

-

3,232

4,739

7,090

1,3591,442685

Shareholders Equity

2005 2006 2007 201020092008

20,000

15,000

10,000

5,000

-

12,248

14,847

11,976

7,0695,839

1,532

2005 2006 2007 201020092008

Gross Profit Margin

80%

60%

40%

20%

0%

50%

41%

66%

38%40%34%

2010F 2011F 2012F 2010F 2011F 2012F

Total Sales Revenue Gross Profit Margin

350

300

250

200

150

100

50

0

80

60

40

20

0

0.06

0.05

0.04

0.03

0.02

0.01

0

60%

55%

50%

45%

40%

Mill

ion

USD

Gros

s Pr

ofit M

argi

n

Mill

ion

USD

EPS

Profit After Tax EPS

CAGR 21%CAGR 30%

• Acquiredin2005undertheprivatizationprogramoftheGovernmentofPakistan• JointventureofFatimaGroupandArifHabibCorporation• ShareholdersmodernizedPFLsubstantially• PuttingupCDMequipment• NewCO

2plant

• New30MWpowerplant• SubstantialturnaroundinprofitabilityoftheCompany• Planstofurtherrevampthecomplex• Additionalgasallocationhasalreadybeenapproved

Clean Development Mechanism, CO2&NitricAcid• Ourfertilizerbusinessalsooffersawiderangeofotherproductsthatmostlystemfromupgradedgasandchemicalscomingoutofthefertilizer

productionplants

Post Privatization Performance

CDM at Pakarab Fertilizers

• GenerationandsaleofCertifiedEmissionReductions(CERs)

• SalesofmorethanUSD12millionin2010

CO2 at Pakarab Fertilizers

• SaleofCO2inliquidandsolidform

• SalesofmorethanUSD3millionin2010

Nitric Acid at Fatima Fertilizer

• 60%percentconcentratedNitricAcid• SalesofmorethanUSD0.50millionin2010

Other Highlights

2005 2006 2007 201020092008

Turnover

25,000

20,000

15,000

10,000

5,000

-

5,954

9,102

16,70618,248

7,069

18,887

Profit After Tax

2005 2006 2007 201020092008

8,000

6,000

4,000

2,000

-

3,232

4,739

7,090

1,3591,442685

Shareholders Equity

2005 2006 2007 201020092008

20,000

15,000

10,000

5,000

-

12,248

14,847

11,976

7,0695,839

1,532

2005 2006 2007 201020092008

Gross Profit Margin

80%

60%

40%

20%

0%

50%

41%

66%

38%40%34%

2010F 2011F 2012F 2010F 2011F 2012F

Total Sales Revenue Gross Profit Margin

350

300

250

200

150

100

50

0

80

60

40

20

0

0.06

0.05

0.04

0.03

0.02

0.01

0

60%

55%

50%

45%

40%

Mill

ion

USD

Gros

s Pr

ofit M

argi

n

Mill

ion

USD

EPS

Profit After Tax EPS

CAGR 21%CAGR 30%

2005 2006 2007 201020092008

Turnover

25,000

20,000

15,000

10,000

5,000

-

5,954

9,102

16,70618,248

7,069

18,887

Profit After Tax

2005 2006 2007 201020092008

8,000

6,000

4,000

2,000

-

3,232

4,739

7,090

1,3591,442685

Shareholders Equity

2005 2006 2007 201020092008

20,000

15,000

10,000

5,000

-

12,248

14,847

11,976

7,0695,839

1,532

2005 2006 2007 201020092008

Gross Profit Margin

80%

60%

40%

20%

0%

50%

41%

66%

38%40%34%

2010F 2011F 2012F 2010F 2011F 2012F

Total Sales Revenue Gross Profit Margin

350

300

250

200

150

100

50

0

80

60

40

20

0

0.06

0.05

0.04

0.03

0.02

0.01

0

60%

55%

50%

45%

40%

Mill

ion

USD

Gros

s Pr

ofit M

argi

n

Mill

ion

USD

EPS

Profit After Tax EPS

CAGR 21%CAGR 30%

2005 2006 2007 201020092008

Turnover

25,000

20,000

15,000

10,000

5,000

-

5,954

9,102

16,70618,248

7,069

18,887

Profit After Tax

2005 2006 2007 201020092008

8,000

6,000

4,000

2,000

-

3,232

4,739

7,090

1,3591,442685

Shareholders Equity

2005 2006 2007 201020092008

20,000

15,000

10,000

5,000

-

12,248

14,847

11,976

7,0695,839

1,532

2005 2006 2007 201020092008

Gross Profit Margin

80%

60%

40%

20%

0%

50%

41%

66%

38%40%34%

2010F 2011F 2012F 2010F 2011F 2012F

Total Sales Revenue Gross Profit Margin

350

300

250

200

150

100

50

0

80

60

40

20

0

0.06

0.05

0.04

0.03

0.02

0.01

0

60%

55%

50%

45%

40%

Mill

ion

USD

Gros

s Pr

ofit M

argi

n

Mill

ion

USD

EPS

Profit After Tax EPS

CAGR 21%CAGR 30%

2005 2006 2007 201020092008

Turnover

25,000

20,000

15,000

10,000

5,000

-

5,954

9,102

16,70618,248

7,069

18,887

Profit After Tax

2005 2006 2007 201020092008

8,000

6,000

4,000

2,000

-

3,232

4,739

7,090

1,3591,442685

Shareholders Equity

2005 2006 2007 201020092008

20,000

15,000

10,000

5,000

-

12,248

14,847

11,976

7,0695,839

1,532

2005 2006 2007 201020092008

Gross Profit Margin

80%

60%

40%

20%

0%

50%

41%

66%

38%40%34%

2010F 2011F 2012F 2010F 2011F 2012F

Total Sales Revenue Gross Profit Margin

350

300

250

200

150

100

50

0

80

60

40

20

0

0.06

0.05

0.04

0.03

0.02

0.01

0

60%

55%

50%

45%

40%

Mill

ion

USD

Gros

s Pr

ofit M

argi

n

Mill

ion

USD

EPS

Profit After Tax EPS

CAGR 21%CAGR 30%

Farmers Support• Weknowourlong-termsuccessislinkedtothe

successofthethousandsoffarmerswhogrowcrops.That’swhyweworkon-the-groundwithfarmersandeducate them the proper use of fertilizers to help improveyields.

Mission Statement

• Enhancefarmproductivity&profitabilitybyimprovingfarmer’sknowledge&perceptiononbalancedfertilizeruse.

Our CSR Initiatives

Mukhtar A. Sheikh Memorial Welfare HospitalA Kidney and Psychiatric Hospital in Multan• TotalprojectcostofUSD23millionapproximately• FreetreatmenttoallworkersofEOBIorESSI

Flood ReliefActively involved from the very outset of the disaster• MorethanUSD200,000donated

LUMS–NationalOutreachProgram(NOP)Leading University of Pakistan• Supporttodeservingstudents• Sponsorshipof2students/year• 4yearsdegreeprogram• USD75,000/annum

Support to NGO’s / Charitable OrganizationsMonthly donations to Hospitals• SupporttoWWF• DonationstotaluptoUSD60,000/annum

• TechnicalServicesTeam• ActivitiesforthefarmingCommunity• Seminars• Farmers’meetings• Farmvisits/individualcontacts• Productdemonstrations&Fielddays• TechnicalLiterature• BiologicalControlService• SoilSampleAnalysis

Our Initiatives

Fatima Fertilizer Company LimitedContact: Company Secretary | Tel: +92 42 111-FATIMA (111-328-462)Registered Office: E-110, Khayaban-e-Jinnah, Lahore Cantt., Pakistan. email: mail@fatima-group.com • www.fatima-group.com