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Private and Confidential

Daewoo Pakistan Express Bus Service Limited

Paksitan IPO Summit PresentationNovember 2016

2

Table of ContentDaewoo

Introduction1 3

Market Leader & Bus Fleet 42

Competitive Edge 86

Business Model 53

Express Bus Service [EBS] 64

Complementing Services 75

Key Investment Rationale 148.1

Multan Metro Bus Service 1711

Favorable Macroeconomic Fundamentals9 15

Lahore Feeder Route 1610

Human Resource 97

Organizational Structure 107.1

Board of Directors 117.2

Senior Management 127.3

Key Investment Rationale 138

Daewoo Cab Service (Pvt.) Ltd 1812

Real Estate Project 1913

Key Risks and Mitigations 2014

Terminals 2115

Fleet 2316

Company Name Daewoo Express Bus Service

Country of Activity Pakistan

Type of Business Transportation

Establishment Dec 1997

CEO & Chairman Shehryar Chishty

Intercity Passengers (2016) 6.6 Million

No. of Buses (2016) 356 InterCity, 67 City

Revenue (2016) 7,000 Million

No. of Employees (2016) 4,046

Intercity Terminal (Main +Sub) 58

Credit Rating A+

Ownership Structure

Greentown Holding Korea is majority owned by Mr. Shaheryar Chishty

Introduction

Key Milestones

• Daewoo Pakistan Express Bus Service (Daewoo or DPEBSL) is the first and the only company with an advanced and organized transport system in Pakistan. It is the only transport company to have a nationwide network with various international trade links

• As transport service provider, the company owns a large fleet of buses, technically advanced workshops to maintain the fleet for the safety of the passengers, state of the art terminals, and training Institutes for Drivers

• Daewoo has been rendering transport facilities for more than last 15 years to the people of Pakistan and appreciated by the masses simultaneously and highly praised by the Governments of Pakistan and Korea for its consistent success. Daewoo Pakistan Express Bus Service renders high quality intercity common carrier services to passengers. With the geographic approach to 60 destinations, Daewoo provides long distance time efficient bus service to numerous cities, extending to entire Punjab, Sindh, Khyber Pakhtunkhwa and covering some destinations in Gilgit Baltistan

• Daewoo Pakistan started City Bus Service in 1998 in Lahore, providing international standards of local travel facilities. Cargo service of Daewoo Express Bus Service provides cheap but safe and quick courier service as compared to other similar companies. The cargo operations have increased multiple folds since the start of the service

Introduction

Daewoo

3Source: Management

6%9%

85%

SAMMI

Tundra Founder

Greentown Holding Korea

Pre-IPO investment by Tundra Founder

1997 1998 2004 2005 2007

Initiations of Daewoo Bus Services Startup capital PKR 75 Million Pakistan’s 1st state of the art EBS

23 Buses EBS from LHR-ISL motorway

CBS in LHR- 20 Buses

Sammi Corp took over EBS

Purchase 35 new buses for EBS

Multiple new terminals became operational

39 new buses were added into the fleet

Operations for Karachi were initiated

Luxury Brand “Premium Bus” was started between LHR-ISL

2011 2014 2015

Acquisition from Sammi Corp by a Consortium of foreign investors

30 new buses were added in the EBS fleet

DHA Bus service started in collaboration with DHA Lahore

2016

Busses arrived for both projects i.e Lahore Feeder Route and Multan Metro Bus Service

Financial close and commercial operations of Lahore Feeder route and Multan Metro Bus Service

Fact Sheet

Market Leader with Strong Geographic Foothold State of the Art Fleet

The wide network of operations and deep penetration in the transport industry has madeDaewoo immune to any external operational shock.

Ownership of the company has been changed overtime and still Daewoo is operatingadeptly, corroborating company’s sustainability.

Daewoo Maintains state of the art luxury fleet for both EBS. Currently a fleet of 314 luxury buses operate under EBS.

The company plans to induct modern and more advanced buses in its fleet in coming years.

Overtime Daewoo has increased its geographic foothold with an increase in routes. Thescalability of Daewoo is unmatched by any other company, incurring a competitive edgein the transport industry.

Currently Daewoo is undertaking several new projects, including new terminals, additionof busses and involvement in government projects.

Daewoo is the first and the only company with an advanced and organized transport system in Pakistan.

As transport service provider, the company owns a large fleet of buses, technically advanced workshops to maintain thefleet for the safety of the passengers, state of the art terminals, and training Institutes for drivers.

Daewoo Pakistan Express Bus Service renders high quality intercity common carrier services to passengers.

Daewoo takes pride in introducing the first of its kind luxury travel services in Pakistan.

The buses are equipped with entertainment console and high grade safety. equipment, which ensures safe and comfortable journey.

Daewoo has been rendering transport facilities for the last 18 years to the people of Pakistan & the bus fleet is the largest in the sector with an advanced and organized system operating in Pakistan.

The company is star flagship transport service provider with presence all across Pakistan.

Daewoo Express Bus Service operates highly maintained fleet of buses along with hi-tech state of the art workshops.

Market Leader

Presence

State of the Art Fleet

Luxury Service

Daewoo Gold Class ServiceOperational Excellence

Market Leader & Bus Fleet

EBS Presence & NetworkCompetitive Edge

24/7 Support services are provided at the terminals

Daewoo provides long-distance time-efficient services

High tech security measures are taken for passengers

The foremost quality of Daewoo is the reliability

Daewoo considers punctuality its pride

Revenue per Bus has shown consistent growth

Luggage Handling is provided by Daewoo

24/7 Passenger Bus and Liner Tracking system

Online Booking System

Onboard multiple entertainment system

Daewoo

Source: Management, SFA Research

4

Daewoo Gold Class Service Launched in June 2016

Business Model

7

Daewoo Subsidiaries

Daewoo

Daewoo Pakistan Express Bus Service

City Bus ServicesExpress Bus Services

Transport Services

Ticket Sales

Advertisement

Through Bus Fleet & Terminal

Cargo Services

Through EBS

Other Income

Tuck shop, Restaurants, cab

etc.

Transport Services

Ticket sales

Advertisement

Through Bus Fleet

Services

Revenue Stream

Services

Revenue Stream

Daewoo Real Estate Holding Company (Pvt.) Ltd

The company was incorporated on September 15th,2011

Principal business of the company is to deal in real estate business

Growth Opportunities

Daewoo , through its subsidiary, is planning to construct international standard state of the art multistoried

shopping malls alongside terminals that will include cinemas and hyper market.

Daewoo Pakistan City Bus Service

Incorporated on March 17th, 2014 The company will operate Lahore Feeder Route


Consistently in process of bidding and undertaking new projects in Punjab, KPK and Sindh

Daewoo Pakistan Express Bus Service


Business Model

Daewoo Pakistan Logistics (Pvt.) Ltd

The company was incorporated on December 20th,2013

The principal business of the company is to provide cargo services


Daewoo is planning to launch a full scale courier service in place of self collection business model. End to End courier

service will soon start operations

Daewoo Cab (Pvt.) Ltd

The company was incorporated on December 9th,2013

Operates a fleet of 150 vehicles for transportation of passengers


Daewoo is looking to expand the operations of its cab service. For this purpose, the company is planning to add

at least 200 new vehicles in a couple of years

Express Bus Service [EBS]

6

Daewoo

Terminal Revenues

Daewoo terminals generate revenues through advertisement on terminals, cargo sales and ticket sales.

No. of Main Terminals 17

No. of Sub Terminals 41

Total Terminals 58

Owned Terminals 4

Leased Terminals 54

Cargo Service Availability All main terminals except Mirpur

Total Influx on Terminals (2016) 6.6 Million

Overview of Terminals

Terminal Advertisement

TerminalRevenue


Passenger Influx [Millions]

9%CAGR


Number of Buses at Year End

274292 292

314339

356

0

100

200

300

400

2011 2012 2013 2014 2015 2016

4.49 4.49 4.444.95

5.856.6

0.00

2.00

4.00

6.00

8.00

2011 2012 2013 2014 2015 2016

20 1822

25

17

274292 292

314339 356

0

100

200

300

400

0

10

20

30

40

50

2011 2012 2013 2014 2015 2016

Net Addition in EBS Fleet Total Fleet EBS

EBS Major Routes

Addition in EBS Fleet

7

Complementing ServicesDaewoo

Safe and high quality road travel is a trade mark of DaewooBus Service. 11 state of the art workshops and refurbishingfacilities maintain 314 high quality luxury busses, Workshopsare run by highly trained technical staff along with capablemanagement ensuring high utility of maintenance facilities.Complete documentation for scheduled maintenance of bussesfortify flawless operations of fleet.

Maintenance and Workshops Training and HR Development

Daewoo Express Bus Service considers Human Resource as themost vital asset of company. Recruitment process is highlycompetitive, challenging and technical. Management training isimparted with high standards, and inductees are monitoredfrom each and every aspect. Information and groomingsessions are held regularly. Daewoo also takes pride inparticipating in public awareness campaigns.

Daewoo Pakistan Express Bus service Limited has set highstandards in quality and luxury during travel. The on-boardcatering service ensures that each passenger enjoys anddelights the journey. Snack boxes withsandwiches, muffins, biscuits and napkins are provided free ofcost at the start of journey. On long haul journeys, multiplesnack boxes are provided to satisfy the appetite of passengers

Complete Engine work

State of the art workshops provide complete engine maintenance

Maintenance of Fleet

Scheduled maintenance of all types of fleet after certain time or mileage, whichever comes first

Denting, Painting work

Complete denting and painting is done in Daewoo’s own paint and denting shops

Centralized System

Orders are placed to vendors from Lahore and deliveries are made to each terminal.

Fresh deliveriesSandwiches are prepared only half an hour before the departure time. Freshness of muffins is assured

Catering Arrangements

Agreements to Coca Cola (CCBPL) and Snack city for exclusive beverages and snacks respectively

Snack box for each passenger including soft Drinks and mineral water.

Fresh &Hygienic Meals

Freshness of meals especially for perishable items such as sandwiches and muffins is made sure.

Quality AssuranceQuality assurance is internally controlled to strict standards in kitchen and packaging areas.


Overhaulingof Buses

Complete mechanical, electrical and hydraulic overhauling technical facility is available for buses

8000 + parts inventory

Large inventory of Parts is available for instants and timely completion of maintenance work

Document controlAll maintenance work is documented for future scheduled maintenance plan

On Board Catering

Induction &Periodic Training

Recruitment process involves challenging tests and interviews leading to induction training

Monitoring & Refresher Courses

Daewoo monitors the performance of each individual, and imparts refresher courses

Community Campaigns

Open workshops and seminars are arranged for community and general public

Advanced Training

Advance technical and management training is imparted to staff

Grooming Sessions

Bus crew grooming sessions are held for enhanced hospitality and comfortable journey

Media partnerCampaigns on road and vehicle safety are undertaken along with law enforcement agencies

Catering Services

Competitive Edge

8

Description Daewoo Competitors

24/7 SupportLarge number of support services are provided at the terminals for facilitation of Daewoo’s valued customers. Telephonic booking, ATM machines, Wifi, Tuck shops and secure carrental facilities are operational, 24/7 on each terminal providing quality services to passengers and eliminate any hassle

Support ServicesDaewoo provides numerous support services including 24/7 availability of maintenance staff and emergency medical room on each terminal to deal with any kind of mishap. Daewooalso provide services to valued customer of online and telephone booking.

Luxury ServicesDaewoo makes journey comfortable by providing traveling facilities through luxury buses having facilities like spacious seats, pillows, blankets and latest audio video technology.Daewoo intra city bus has set exemplary standards when it comes to comfort and luxury

Safety and SecurityHigh tech security measures are taken before and during the journey, including video recording of each passenger with seat number allotted. Security cameras are installed at theterminals and in the buses and proper 24 hour surveillance is maintained. Fire Extinguishers are installed within buses and on terminals.

Nationwide NetworkThe company provides long-distance time-efficient bus services to all major cities within Pakistan. With its headquarters in Lahore the company operates its service from 31 cities inPakistan covering more than 60 destinations, extending almost to the entire Punjab, Sindh and NWFP

Transit Facilities Daewoo provides numerous facilities in multiple transit stops along its major routes including mosques, restaurants, rest room, fuel stations and food courts.

ReliabilityThe foremost quality of Daewoo is the reliability. Time is the most precious asset and at Daewoo, safety of this asset is guaranteed. Punctuality & regularity is the key feature of thecompany’s service. Till date it is considered to be the only Bus service which caters to intercity as well as intra city travel needs of all income and age groups.

PunctualityTime Management is the key issue which every business needs to keep a check on. Daewoo considers punctuality their pride and even a fraction of a minute’s delay matters to thecompany. Following international standard travel operations in Pakistan, Daewoo has made it impossible for any other competitor to emerge.

Groomed CrewCrew, which consists of driver, hostess and armed guard, is selected and trained in a manner to handle its duties professionally through imparting staff training for 2 weeks. Languagetraining is emphasized and staff is trained in techniques to maintain order during journey.

On-board EntertainmentOn board entertainment service portal of family movies, dramas, songs and documentaries on every seat for an undisturbed enjoyment switching system with multiple choices ofaudio & video channels, all esteemed daily newspapers are also available in the bus. Every passenger is provided with high quality set of headphones to ensure privacy and choice.

Luggage HandlingEvery possible support is available for carrying personal luggage while traveling. Luggage up to 30-kgs can be carried by each passenger. In case of extra luggage, ELT facility can beavailed

Daewoo


Competitive Edge

9



Human Resource

November 2016

Chief Executive Officer

Govt. Relations

GM

Security

GM

Internal Audit & C.Cell

Sr. Manager

President

Vice President

Investment / Planning

Sr. Manager

Manager

Administration

DGM

HR / Hostess & Training

GM

Manager

Manager

Marketing

GM

Manager

MIS

GM

Sr. Manager

Construction &

Maintenance

Sr. Manager

Services

DM

CFO

Accounts

GM

Manager

Manager

Finance

DGM DGM

Manager

Manager

Director Procurement & Legal

Legal Affairs

Manager

Manager

Procurement

Sr. Manager

Workshop Operations

DGM

Manager

Manager

Manager

Supply Chain

Sr. ManagerCargo

Board of Directors

Organizational Structure

10

Daewoo

Source: Management

Board of Directors

11

Daewoo

Source: Management

BOD of Directors

Shaheryar Arshad Chishty Sameer Arshad Chishty Jong Hoon Kim Min Sang La Gi Kyun Wang Hyun Sang Youn Saad Saeed Faruqui

Mr. Chishty is CEO of Asiapak Investments, an investment holding company which controls variety of businesses in mining, transportation, logistics and real estate.

Mr Chishty was until recently the Global Head of Industrials Investment Banking at Nomura International

Previously, he worked at Citigroup for over 12 years

Shaheryar Arshad Chishty

Currently Mr. Youn is a Managing Director at EQP partners

Previously, he has worked with Macquarie Korea Infrastructure Fund

He has done his J.D. at Rutgers University and B.A. in Philosophy from Korea University

Hyun Sang Youn

Currently Mr. Kim is a Representative Director at EQP partners

Previously, he was also the Head of Private Equity at Korea Investment Partners, head of PPG at Macquarie and JP Morgan Chase New York

He as done his L.LM from New York University

Jong Hoon Kim

Mr. Wang is a Vice President at EQP Partners

Previously, he as worked with Korea Investment Partners and Macquarie Capital

He has done his B.A. In Economics at Johns Hopkins University

Gi Kyun Wang

Board Of Directors

Senior Management

12

Daewoo

Source: Management

Senior Management of Daewoo

Chief Executive Officer

Shaheryar Chishty

President Chang ln Park

Vice President/COOFaisal Siddique

GM Government Relation

Khurram Mirza

GM SecurityCol Zaheer Gillani

GM Marketing and Media Sales

Sheriar Hassan

GM Human Resource

Arif Nomani

Chief Financial Officer

S.H Byun

GM FinanceAnwar Shamim

Senior Management

Mr. Chishty is CEO of Asiapak Investments, an investment holding company which controls variety of businesses in mining, transportation, logistics and real estate.

Mr. Chishty was until recently the Global Head of Industrials Investment Banking at Nomura International

Previously, he worked at Citigroup for over 12 years

CEO & Chairman: Shaheryar Arshad

Chishty

Mr. Chang In Park is the President of DPEBSL since May 2013.

He has been affiliated with Daewoo International since the last 35 years and had a vital role in establishing DEPBSL. C I Park is a Law Graduate from the Yeon Sei University in Korea.

President: Chang ln Park

Mr. Faisal Siddiqui is currently the President and COO for Daewoo Pakistan Express Bus Service Limited

Joined the Company in 2011

He is a graduate from the Wharton School at the University of Pennsylvania and has an MBA from the prestigious Colombia Business School. He has 12 years of financial services experience in New York.

President/COO: Faisal Siddique

Anwer Shamim is the GM Finance at DPEBSL since late 2012.

He is also a member of ICAP since 2008 & completed his article ship from KPMG Taseer Hadiand Co.

He has over 10 years of experience

GM Finance/CFO: Anwar Shamim

13



Key Investment Rationale

November 2016

Key Investment RationaleDaewoo

14

Daewoo has started partial commercial operation of Lahore Feeder route and Multan Metro Bus service and consistently bidding for projects in

Punjab, Sindh & KPK .

Lahore Feeder Route & Multan Metro Bus service

Metro City Bus Service/ Metro Bus Service

Long Term Contracts with guaranteed off take

Increased and Stable Revenue Base

Favorable Macroeconomic Fundamentals

Transport sector of Pakistan has a great potential to expand, with increasing foreign investments and China Pakistan Economic Corridor underway.

Daewoo can take first mover advantage by capitalizing over these projects.

14% Contribution of transport sector in GDP and increasing FDI

contribution

China-Pak Economic Corridor

Decreasing International Fuel Prices

Daewoo is planning to construct two new state of the art terminals in Lahore having mega real estate projects. Terminals include cinemas, food courts and

hyper markets.

Construction of Two New Terminals

Terminal include Mega Real Estate Projects

Cinemas, Hyper Markets etc.

Increased Rental Income

Market Leader with Strong Geographic Foothold

Daewoo being the 1st international transport service provider in Pakistan has gained consumers confidence which has resulted in Daewoo to expand its

destinations and gain competitive edge over local transporters.

Widest network with luxury bus fleet

More than 60 destinations across Pakistan

Multiple Competitive Edge

With the addition of state of the art buses Daewoo plans to expand its operations with additional routes. Addition of new buses in the company’s

fleet would result in increase in ticket revenue.

State of the Art Fleet

Additional Routes

Increased Ticket Revenues

Expansion in Operations

After excellence in existing operations, Daewoo is planning to expand its cab and courier facilities which will increase the companies revenue base along

with increased operational excellence.

Cab Services

Plan of full fledge Courier Services

Increase revenues from Cab and Cargo


Addition of State of the Art Fleet

Investment Projects


Pakistan is blessed with a very unique geo-strategic location, posing strengths and challenges for its endurance. Pakistan has a reasonably developed transport infrastructure. Transport sector is the backbone of any economyand acts as the catalyst for economic growth. Daewoo is committed to develop and enhance a modernized transport and logistics services through favorable and alluring macroeconomic indicators of Pakistan’s economy.

Karakorum Highway Phase II from Raikot to Islamabad (487 km), of Rs. 379 billion 1

Dec 2017

Karachi-Lahore Motorway

This also includes Multan-Sukkur Section of 387 km, costs Rs. 246 billion

2Dec 2017

East-Bay Expressway Gawadar Port (18.9 km), Rs 11-12 billion3

April 2016

Key Phases of CPEC

Increasing FDI is an indicator of an emerging economy. Pakistan received FDI of more than USD 1.6 Billion in 2013-14 andUSD 0.95 Billion from July 2015 to March 2016. Pakistan received USD 20 million FDI in transport sector in 2015-16 Jul-Mar.The transport sector’s contribution in Foreign Direct Investment has been following irregular pattern, but it is expectedthat transport sector with its huge growth will allure foreign investors to invest in Pakistan.

As oil prices fall from USD 104 per barrel in 2011 to USD 41 per barrel in 2016(April). This trend positively impacts thelocal transport sector.

Oil Prices in International Market USD/Barrel

Foreign Direct Investment (Millions USD)

Pak-China Economic Corridor would greatly promote commerce and trade. In long term, transport system of Pakistan islikely to experience tremendous improvements with the implementation of the National Trade Corridor Program (NTCP).Daewoo will have the opportunity to reap benefits from CPEC through expansion of its operations.

Total GDP of Pakistan is USD 250 Billion The major contributor to this GDP is

service sector with 45% contribution indomestic gross product

Transport sector contributes around 14%to GDP out of service sector

It is foreseen that transport sector’scontribution would increase in sight toChina Pakistan Economic Corridor (CPEC)and other major governmenttransportation projects

21%

20%

14%

45%

Agriculture

Industry

Transport

Service Sector

Sector wise GDP Contribution

Daewoo

Source: IMF, Pakistan Economic Survey 2014-15, SFA Research

15

1,635

821

1,4561,699

851 957

105

19

443

6 20

-

700

1,400

2,100

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Total FDI Transport Sectro FDI

104 105 104 96

5141

0

50

100

150

2011 2012 2013 2014 2015 2016-April


Lahore Feeder Route

Brief Introduction

Daewoo

Funding sources

Off take assurance & agreement with Punjab Government

Any increase in variable & fixed O&M will be adjusted in reference rate

The Government will assure minimum travelling of 60,000 km per bus per annum

Variable and Fixed O&M agreement with Daewoo

Agreement will ensure high quality O&M services resulting in smooth operations

Punjab Masstransit Authority (PMA) had invited bids for the Procurement, Operation and Maintenance of Feeder Buses for Integrated Bus Operations in Lahore (Project).

In the initial phase, PMA was looking for the induction of 200 brand new air conditioned diesel buses. These buses included 38 buses 8-meter long and 162 buses 12-meter long.

Daewoo has undertaken this project through its’ subsidiary DaewooPakistan City Bus Service (PVT.) LTD (DPCBSL)and has achieved thefinancial close of this project. The buses have arrived and the projectwill commence commercial operation in December 2016

Daewoo’s vast experience and expertise as a successful bus operator inPakistan makes it a highly suitable operator for the Project.

Cash flows Mechanism Diagram

• Minimum guaranteed travel is 60,000 km per bus per year or 164.38km per bus per day.

• Excess km over the above mentioned threshold• Payable Dead Mileage

Revenue Mechanics Flow Chart Cash Flow Forecasting

Fixed O&M cost

Working Capital

Rate per assured km

Rate per excess km

Variable O&M cost

Debt Withholding Taxes

Adjusted reference rate

Rate per assured km

Operating expenses

Other operating cost

Local Bank Project Loan

Debt

Other Operating cost includes cost related to insurance and generaltransportation related taxes

x = Reference Rate Income Revenues

(-) OPEX

EBITDA

(-) Δ Working Cap.

Project Cash Flow

(-) Taxes

Equity Distributions

(-) Debt / Lease Service

Increase/ decrease in fuel, tire, lubricants, salaries and maintenance cost is adjusted in the reference rate

Total Number of Buses 200

Assured Travelling 60,000 Km/year/bus

Total Project Cost PKR 2,457 Million


16

DPCBSL

Funding sources

SPV Daewoo Pakistan City Bus Service

Fact Sheet Project Overview

Total Paid km

Equity: Daewoo Debt: Commercial bank

Daewoo Pakistan City Bus Service

Multan Metro Bus ServiceDaewoo

DPEBSL

Funding sources

Punjab Masstransit Authority (PMA) had invited bids for the Procurement, Operation and Maintenance of Multan Metro Bus Service

Daewoo has won the bid for this request for proposal issued by theGovernment of Punjab.

Daewoo has achieved the financial close of this project. The buseshave arrived and the project has commenced limited operations

Daewoo’s vast experience and expertise as a successful bus operator inPakistan makes it a highly suitable operator for the Project.

Cash flows Mechanism Diagram


17

DPEBSL

Total Number of Buses 35

Assured Travelling 70,000 Km/year/bus

Rate per assured kilometer PKR 1,324 Million

Equity: Daewoo Debt: Commercial bank

• Minimum guaranteed travel is 70,000 km per bus per year or 191.78km per bus per day.

• Excess km over the above mentioned threshold• Payable Dead Mileage

Revenue Mechanics Flow Chart Cash Flow Forecasting

Fixed O&M cost

Working Capital

Rate per assured km

Rate per excess km

Variable O&M cost

Debt Withholding Taxes

Adjusted reference rate

Rate per assured km

Operating expenses

Other operating cost

Local Bank Project Loan

Debt

Other Operating cost includes cost related to insurance and generaltransportation related taxes

x = Reference Rate Income Revenues

(-) OPEX

EBITDA

(-) Δ Working Cap.

Project Cash Flow

(-) Taxes

Equity Distributions

(-) Debt / Lease Service

Increase/ decrease in fuel, tire, lubricants, salaries and maintenance cost is adjusted in the reference rate

Total Paid km

Off take assurance & agreement with Punjab Government

Any increase in variable & fixed O&M will be adjusted in reference rate

The Government will assure minimum travelling of 70,000 km per bus per annum

Variable and Fixed O&M agreement with Daewoo

Agreement will ensure high quality O&M services resulting in smooth operations

Brief Introduction Fact Sheet Project Overview

Introduction

Daewoo Cab Service (Pvt.) Ltd

Daewoo Cab (Pvt.) Ltd is a wholly owned subsidy of Daewoo Pakistan Express Bus Service.

The company was incorporated on December 9th,2013 and since then has been Operating a fleet of vehicles for transportation ofpassengers. The company following the steps of its parent company promises to provide luxury and comfortable services.

Daewoo Cab provides a safe, comfortable and affordable door to door local transport solution to Daewoo Express Bus Service passengers.

Daewoo Cab also plans to provide customers an intra-city luxury conveyance at a reasonable rate nationwide.

The company started operations in May 2014, therefore 2014 results are showing operations of 7 months

For the year 2015 nine months financials are annualized

Addition Cab Fleet

Competitors

Daewoo Cab Service (Pvt.) Ltd currentlyowns a fleet of 150 cabs.

The Cab service will induct 100 new cabs ineach year 2017 and 2018. by the end of2017 the company will own a fleet of 250luxury cabs.

Daewoo Cab Service(Pvt.) Ltd will buy 75new cabs in 2019 and 2020.

The additional fleet of Cabs will result incompany’s expansion and improve growthprospect through expansion in operations.

Daewoo

Source: Management

18

100

100

75

75

150

250

350

425

500

0

100

200

300

400

500

600

0

100

200

300

400

500

600

2016 2017-F 2018-F 2019-F 2020-F

Series1

Total Fleet

Location

Fact Sheet

Land Size 75,000 SQFT.

No. of Floors 5

No. of Basements 2

Floor Area 60,000 SQFT

Construction Start Date 31-Dec-2016

Construction End Date 31-Dec-2018

Construction Tenure 24 Months

Land Lease Period 40 Years

EquityDebt

Total project Cost

40% 60%

Project is expected to start by the end of year 2016 and construction shall be completed by the end of year 2018.

• The terminal will be located in DefenceHousing Authority (DHA) Sector G Phase V near Beacon house TNS Lahore, the location encompasses adjacent areas of cantonment, Gulberg, Cavalry and Walton. DHA is located on close proximity of Lahore Ring road, which will make exit and entry in a city much more convenient.

• The company plans to construct state of the art Terminal, which may also attract non commuters as it is planned to have Cinemas, Hypermarkets and other public attractions

Project Specification

Real Estate ProjectDaewoo

Construction of New Terminal

19

Key Risks and Mitigations

20

Risk Reason Mitigation Factor

• Increase in fuel cost is usually passed onto passengers in long run through an increase in prices of tickets. Recent lift of sanctions onIran is expected to increase oil supply in the international market, juxtaposed with current demand it is foreseeable that oil priceswill decrease or will remain constant in coming years, mitigating risk of high oil prices.

High Oil PriceHigh oil prices can increase operational cost, as in the

short run it cannot be passed onto passengers

1

Daewoo maintains one of the largest fleet of buses and have a strong geographic foothold in Pakistan therefore it is difficult for anynew entrant to compete with Daewoo, moreover barriers to entry in the transport industry are quite high due to high capitalrequirement, licensing and route permits. Brand loyalty and high standing of Daewoo amongst passengers also guards against anythreat from competition.

New EntrantsIncreased competition in transport industry will result in

loss of market share

2

Expansion Projects Strong, resilient and competitive organization with a combination of foreign and local management diversified with vast experience

in transport sector makes Daewoo foremost contender for undertaking new projects.Failure to comply with timeline of new projects will hurt

the brand name and key performance indicators

3

Brand Image

Daewoo has maintained high quality of services since its inception. 24/7 support services and state of the art technically maintainedworkshops supplemented with experienced management makes sure that company operates with as few failures as possible. Therehas not been a single incident when operations of Daewoo had to stop following failure in operational activity of the company.

Day-to day issues that transport companies are confronted with may lead to bad brand image

4

Increase Toll Tax& Token Value

Daewoo operates one of the largest fleet of buses in Pakistan covering a network from Swat till Karachi, an increase in token valueand toll taxes on highway or motorway will have a negative impact on company’s operation as expenses will increase in the shortrun, this can be passed onto passengers in long run resulting in smooth cash stream for the company.

Any increase in toll tax on highway and motorway or token value will increase expenses

5

Government Regulation

Daewoo Pakistan has been increasing its footstep across Pakistan with the addition of new buses. The company should take intoconsideration the fact that import duties might increase in future and should keep a reserve for the unseen event to purchase newbuses.

Increase in import duty for buses will increase the capex for the company

6

Key Risks and Mitigations

Daewoo

Source: SFA Research

Source: Management

Terminal PicturesAnnexure I

21

Lahore MultanKarachi

Sukkar Chowk BahadurpurHyderabad

Source: Management

Terminal PicturesAnnexure I

22

Bhawalpur SwatPeshawar

Abbotabad FaisalabadMurree

Source: Management

FleetAnnexure II

23

Interior of Buses

Daewoo Express Luxury Buses (BH-116 and BH-120) Daewoo Express - Gold ClassDaewoo Express Premier Plus Bus (BH-212)

Source: Management

Fleet Annexure II

24

Lahore Feeder Route Bus Multan Metro Bus

Daewoo Intra-City Daewoo CabDHA Bus

For More Information Contact:

Awais IqbalManaging [email protected]

Hussain AsgharManaging [email protected]

Usman IftikharHead of Corporate [email protected]

Afraz ZafarHead of Business [email protected]

Office No. 424, 4th Floor, Siddiq Trade Centre, 72 Main Boulevard, Gulberg II, Lahore, Pakistan

Phone: +92-42-35817302 Fax: +92-42-35817301 Web: www.sfaresearch.com

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