Engro Corporation Growth through diversity

A journey through time…

1997-2010

Launched Chemical Jetty PVC Manufacturing Dairy & Food Power Generation Fertilizer Trade Rice Business

1965 ESSO Pakistan Fertilizer Co. Ltd incorporated after discovery of Mari

Gas Field

1978 ESSO

becomes

EXXON

1991 Exxon divested Its

equity company

Renamed Engro

Chemical Pakistan

Limited

Engro Corp

Engro Corp Presence in Pakistan…

Engro Fertilizers Limited, a wholly owned Engro subsidiary. Premier fertilizer manufacturing and marketing company 2010 Revenue – USD 220.9 Million

Engro Vopak Terminal Limited is a joint venture with Royal Vopak of the Netherlands Services to the growing chemical and petrochemical industry of Pakistan 2010 Revenue – USD 58.8 Million Engro Powergen is a fully owned subsidiary, to develop power projects in Pakistan. Engro Energy Limited Thar coal project 2010 Revenue – USD 66.3 Million

Engro Polymer & Chemicals Limited Pakistan's leading manufacturer and marketer of PVC (polyvinyl chloride) resin, 2010 Revenue – USD 169.7 Million

Leading global automation business providing process and control solutions Operating in UAE and the United States 2010 Revenue – USD 20.9 Million

Engro Foods ltd. Dairy business set up as a stepping stone to enter the food business 2010 Revenue – USD 240 Million

Engro EXIMP is Pakistan's largest importer of phosphates and potash fertilizers Entering Global rice export market - Owner of an Integrated Rice Processing Unit 2010 Revenue – USD 205.8 Million

over the

years

2004 2010 2011

USD. Million

228 930 1,300

30 80 93

235 1,915 2,000

Revenues

PAT

Total Assets performance

• Currently has long term credit rating of

AA from Pakistan Credit Rating Agency

• Investments from 2007 to 2012 have amounted to over USD 1.9 Billion

o Fertilizer(USD 1.1B) o PVC (USD 265M) o Foods (USD 180M) o Chemical handling (USD 36M) o Power Generation (USD 200 M) o Rice Business (USD 55Mn)

2012

1,340

14

2,030

Corporate Social Responsibility we help turn dreams into reality

Introducing…

Engro EXIMP Private Limited, established in 2003, is a wholly owned subsidiary of Engro Corporation

• Trades in commodity fertilizers such as DAP, MAP, MOP and SOP

• Established a fast growing basmati rice trading

business over the last 3 years

• Procures high quality basmati rice paddy directly from farmers and exports finished and packed basmati rice to customers across the world

• Owns & operates a large and state-of-the-art rice processing mill

• Annual turnover of Engro EXIMP Agri-Products in 2012 was Rs. 3.6 billion and in 2011 was Rs. 1.6 billion

Engro EXIMP

Basmati is a variety of extra long grain rice grown only in Pakistan & India. It is notable for its fragrance and delicate taste. Its name means "the fragrant one" in Sanskrit, but it can also mean "the soft rice”. It is primarily grown through paddy field farming in the northern Punjab region of Pakistan and the Punjab and Haryana region of India.

Truly Aromatic…

The grains of basmati rice are longer than most other types of rice Cooked grains of Basmati rice are characteristically free flowing rather than sticky, and have a unique fragrance

Basmati is a variety of extra long grain rice grown only in Pakistan & India It is notable for its fragrance and delicate taste. Its name means "the fragrant one" in Sanskrit, but it can also mean "the soft rice” It is primarily grown in the northern Punjab region of Pakistan and the Punjab and Haryana region of India

Basmati

The Jewel of Punjab…

Area “000” acres

Production “000” MT

2010 2011 2012 2010 2011 2012

3,246 3,327 2,917 4,165 4,260 3,734

Basmati

The Rice Business…

• Focus on providing end-to-end contract packing solutions globally from product & packaging development to logistics – Consistent supply of quantity and quality

• Sampling and testing as per EC regulations and norms including DNA finger-printing, Aflatoxins, Pesticides Residue, Heavy Metals tests etc through globally renowned independent quality surveyors of Customer’s choice – Food Safety is our priority

• Product Portfolio includes White, Steamed, Brown and Parboiled Rice of all Basmati and most Non-Basmati Varieties

• Recommended for the following 9 certifications by a globally renowned and accredited certification agency Bureau Veritas:

ISO-9001:2008, ISO-14001:2004, OHSAS-18001:2007, ISO-22000:2005, Dutch HACCP:2006, BRC, IFS, Halal and Kosher Standard

Engro EXIMP

To become the ‘Contract Packer of Choice’ for Brands and Private Labels globally

VISION

FOCUS

Procuring from the rice fields…

• Largest Paddy Procurer in Pakistan in 2012.

• Engro is in direct contact with more than 3,000 farmers and 100 traders for the procurement of Basmati rice from the fields of Punjab

• To ensure top quality of raw material Engro is now directly involved with farmers and targets to procure majority of raw material directly from farmers:

• 2012: farmers (40%) / traders (60%) • 2015 target: farmers (60%) / traders (40%)

• 44 employees at Engro are directly involved with

farmers on a daily basis: • 33 – Rice Procurement • 11 – R&D Development and Agri Services

Engro Rice Procurement Centers

Engro EXIMP

Working with the farmers…

Baseline Survey, Initial Awareness Farmer Visits / Meetings, Workshops,

Focus Groups, Blitz, BTL, Town Storming, Briefings

Group Discussions with Farmers, Literature Folder Distribution,

Farm Input / Services Briefings

Identification of Anchors, Potential Villages, Early

adapters , Opinion Leader, Area Needs , Introductory, Awareness , Orientation &

Motivational Visits & Meetings

Direct Rice Paddy Purchase from Farmers, Arrangement of Bank loans for Farmers,

Full Payments to Farmers within 3 days of supply

Agricultural Information Database,

Contract & Contact Farmer Training

Broader Collaboration with Ambassadors farmers, Agricultural input

sectors

Agro Services

Basmati Seed Program Contract Farming Program

Engro EXIMP

From field to final product…

Engro EXIMP

Rice Grower Product Received at

Plant Paddy

Classification

White Rice Packing

Processing

Parboiled Rice Packing

Brown Rice Packing

Schmidt Seeger Germany

Paddy Cleaning

Schmidt Seeger Germany

Indus - India

Brock USA

Parboiling

Dryer

Buhler - Germany

Whitening (1 pass)

Silos Storage

Schmidt Seeger Germany

Grading

Buhler - Germany

Color Sorting

Schmidt Seeger Germany

Cleaning

Buhler - Germany

De-stoning

Buhler - Germany

Husking

Buhler - Germany

Buhler - Germany Satake- Japan

Whitening (4 Pass)

Color Sorting

Schmidt Seeger Germany

Grading

Polishing (4 pass)

Integrated Rice Processing…

Engro EXIMP

• Integrated Rice Mill located in the heart of Punjab’s Basmati growing area • Land: 65 acres • Initial cost of mill in 2010: US$ 38 million

• Plant Capacity o Reprocessing: 2 lines of 12 TPH each o Processing, Reprocessing from Buhler & Satake o Color Sorter from Buhler (Z 4 +) o Paddy Drying Capacity: increasing from 75 TPH to 150 TPH o Paddy Receiving, Drying, Parboiling and Silo Storage from Germany & U.S.A o Paddy Storage capacity increasing from 36K T to 66K T

Ensuring quality products …

Engro EXIMP

Mill Certifications

BRC Global Standard for Food Safety

International Food Standard (IFS)

ISO 22000:2005

ISO 9001-2008

SQF (Safe Quality Food) 2000 Quality Code

ISO 18001:2007

Environmental Compliance

Occupational Safety & Health Administration (OSHA) Compliant

National Environment & Quality Standards Compliant

Treated (Disinfected & Filtered) water for Parboiling – WHO standard for drinking water

Effluent Treatment Plant – IFC Limits

Quality Control Tests

Detailed Physical Analysis (Pre and Post Cooking – Organoleptic benchmarking)

DNA Testing (Genetic Mapping)

Aflatoxin & Ochratoxin Tests

Pesticide Residue Analysis for Rice

Heavy Metals Test

GMO Test

Dutch HACCP

ISO 14001:2004

OHSAS 18001:2007

Halal

Kosher Standard

Complete packaging solutions for both Consumer & Commercial use

Packaging options can range from 1-50KG

Our Packaging options include the following & more:

Plain Cotton Cotton Zeen

Jute (Natural/Bleached) Woven PP bags

Non- Woven PP (China Fabric) PET/LDPE

Automated pre-formed packaging equipment at our Plant

Consumer Packaging Solutions …

Engro EXIMP