Nourishing soils for a greener revolution

Vision
To 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.

With the world population growing at 2% we will need to feed 9 billion people by 2050. Balanced nutrients and advancements towards increasing yields will be the only solution.

Depleting soil conditions due to the imbalanced use of fertilizers creates more growth potential for compound fertilizers like CAN, NP & NPK. With two fertilizer plants in the agriculture belt and production capacity of more than 2.5 million metric tons, we serve the farming community of Pakistan.
Fawad Ahmed Mukhtar
Chief Executive Officer

Arif Habib
Chairman

Common Board Members

Arif Habib
Chairman Over 30 years of experience as a corporate leader Chairman of Arif Habib Corporation, Arif Habib Limited, Thatta Cement, Arif Habib DMCC Dubai Remained President / Chairman of Karachi Stock Exchange six times in the past Served on the Board of Investment Member Privatization Commission & Tariff Reforms Commission

Company Specific Board Directors

Fatima Fertilizer Company Limited M. Abad Khan
Director Chemical Engineer 45 years of operational leadership experience with Exxon Chemicals, Fauji Fertilizer and Fauji Fertilizer Bin Qasim

Jorgen Nergaard Gol

Director Representative of Haldor Topsoe A.S., Denmark Chemical Engineer 25 years of experience in Marketing and Sales

Fawad Ahmed Mukhtar

Chief Executive Officer 27 years as an executive leader of Fatima Group Chairman of Fatima Energy Limited & Reliance Weaving Mills Limited, Director of Fatima Sugar Mills Limited, Reliance Commodities and other group companies

Syed Iqbal Ashraf

Director A nominee of National Bank of Pakistan 33 years of banking experience in UK, USA, Middle East and Pakistan

Fazal Ahmed Sheikh

Director 23 years as an executive leader in group companies CEO of Fatima Energy Limited & Reliance Weaving Mills Limited and Director of Fazal Cloth Mills Limited, Fatima Sugar Mills Limited and three other group companies

Muhammad Jawaid Iqbal

Director A nominee of Allied Bank Limited 20 years of experience in Corporate and Investment Banking

Pakarab Fertilizers Limited Rehman Naseem

Director

Faisal Ahmed Mukhtar

Director CEO of Fatima Sugar Mills Limited and Director of Fazal Cloth Mills Limited, Reliance Weaving Mills Limited and 3 other group companies

A graduate from Columbia University, NY CEO of Ahmed Fine Textle & Rehman Amir Fabrics, Director of Fazal Cloth and other Fazal Group companies

Abdus Samad
Director Vast experience of equity portfolio management Director of various Arif Habib Group companies

Muhammad Kashif Habib

Director Director of Arif Habib Corporation, Thatta Cement Company, Nooriabad Spinning Mills, Javedan Cement and 2 other group companies

Nasim Beg
Director Chartered Accountant 40 years of industry and financial sector experience in domestic and international markets, CEO of Arif Habib Investments

Mission
Our 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: To be the preferred fertilizer company for farmers, business associates and suppliers by providing quality products and services. To provide employees with an exciting, enabling and supportive environment to excel in, be innovative, entrepreneurial in an ethical and safe working place based on meritocracy and equal opportunity. To be a responsible corporate citizen with a concern for the environment and the communities we deal with.

Sponsors Profile

Established in 1936 with trading of commodities Exceptional progress in the last three decades Diversified into manufacturing of sugar, textile and fertilizers Largest exporter of molasses and importer of DAP Further portfolio diversification in the energy sector Group Companies: Fatima Energy Limited Fatima Sugar Mills Limited Fazal Cloth Mills Limited Reliance Commodities (Private) Limited Reliance Weaving Mills Limited Pakistan Mining Company Limited Air One (Private) Limited

Arif Habib Group (AHG) has interests in various sectors of economy Engaged in the business of investments in listed and unlisted securities, commodities brokerage, asset management, cement, insurance, microfinance, etc. Group Companies: Arif Habib Corporation Arif Habib Limited Arif Habib Investments Limited Arif Habib REIT Management Limited Arif Habib DMCC Aisha Steel Mills Limited Al-Abbas Cement Industries Limited Pakistan (Private) Equity Management Limited Rozgar Microfinance Bank Limited S.K.M. Lanka Holdings (Private) Limited Sweet Water Pakistan Dairies (Private) Limited Thatta Cement Company Limited

Management Team
Muhammad Zahir
Director Marketing Fertilizer Business Masters in Business Administration 29 years of experience with ICI Pakistan

Arif-ur-Rehman

Iftikhar Mahmood Baig

Director Operations Fatima Fertilizer Company Limited Chemical Engineer 29 years of experience with Fauji Fertilizer, Fauji Fertilizer Bin Qasim & ICI PTA.

Chief Financial Officer Fatima Fertilizer Company Limited Fellow member of ICS and M 23 years of experience in Strategic Planning and Financial Management

Ausaf Ali Qureshi

Company Secretary Fertilizer Business & Energy Chartered Accountant 27 years of experience including 20 years with Bristol Myers Squibb

Arif Hamid Dar

Chief Financial Officer Pakarab Fertilizers Limited Chartered Accountant 14 years of experience with Honda Atlas Cars (Pakistan) Limited

Javed Akbar

Head of Procurement Mechanical Engineer and Computer Science Graduate 25 years of experience including Philips, Alcatel, Mobilink and PTCL

Qadeer Ahmed Khan

Director Operations Pakarab Fertilizers Limited MS in Petrochemicals and Hydrocarbons 32 years of experience from Engro Chemicals and Engro Polymers

Asad Murad

Head of Internal Audit Chartered Accountant 12 years of experience with Honda Atlas (Pakistan) Limited

Shahid Saeed

Head of I.T Masters - Information Technology 25 years of experience with National and International Telecom, Financial and Utility Sectors

Pakistan Facts
Population
The estimated population of Pakistan is over 180 million The population growth rate now stands at almost 2% 6th largest country by population

Agriculture
The mainstay of Pakistans economy Accounts for 21 percent of the GDP Employs 45 percent of the total labor force Contributes to growth as a supplier of raw materials to industry Market for industrial and chemical products Comprises 60 percent of Pakistans export earnings About 67 percent of the population live in rural areas and are directly linked with agriculture The sector growth is projected at an average rate of 4 percent per annum The crop sector accounts for about 60 percent of agricultures contribution to the GDP

Average Yield (kg / hectare) of different crops

Wheat Cotton Rice Sugarcane

World India China Egypt USA Brazil Pakistan

3,086 2,099 2,802 1,206 4,762 3,906 6,006 2,333 3,018 2,250 - 3,757 2,451 2,046

4,309 71,510 3,370 68,877 6,556 73,114 9,731 121,136 7,672 73,765 4,229 79,709 3,520 51,494

Land
Total land area of nearly 80 million hectares Approximately 22 million hectares under permanent cultivation Amongst the highest cropped area proportion in the world (27% of geographical area) About 18.8 million hectare (85%) of the cultivated land is irrigated, the remainder is rain-fed

Fertilizer Trends
The Fertilizer use in Pakistan continues to grow steadily Second and third generations of farmers are using fertilizers since introduction of local fertilizer industry According to NFDC 90% of the farmers have adapted to fertilizer usage Pakistan is predominantly a Nitrogen (Urea) market Urea use has increased steadily since its introduction The growth in Phosphate (P) has been inconsistent Usage of Potash (K) has been negligible Government is actively encouraging balance usage of fertilizers as per soil requirement
International Fertilizer Consumption*
Country Kg/Ha of Arable Land

1% Potash

Netherlands Egypt Japan France Germany Italy USA Pakistan India

1,226 527 344 207 194 184 171 166 142

22% Phosphate

77% Nitrogen

N, P, K usage ratio in Pakistan

N P K

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

Actual Desired

0.90 1

0.21 0.008 0.5 0.25

Global fertilizer trends favor Phosphate and Potash usage In Pakistan, growth in P (Phosphate) & K (Potash) based fertilizers is essential

Growth Potential Our Advantage

NFDC, FAO and IMPHOS has been demonstrating and promoting the balanced use of plant nutrients Main focus has traditionally been on N (Urea), resulting in imbalanced and inefficient application Nutrient-deficient soil condition underscore need for significantly increased Phosphate (P) and Potash (K) usage The soils are predominantly alkaline, ideally suitable for NP usage which is highly acidic The potential impact of balanced fertilizer use on crop production is high 50% adoption of balanced fertilizer use may result in an increase of 30% of national crop production financial gain of over USD 1.2 billion
Comparison of Yield Increase National Crop Production
Crop N Only Yield (kg/ha) Balance Use of N.P.K Percentage Increase

Wheat Rice (Basmati) Maize Sugarcane

2,521 2,800 2,110 56,515

4,120 4,494 5,084 126,334

63% 60% 140% 123%

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

Agronomic Requirement and Off-take Vis--vis Production

4,000 3,500 3,000 2,500 2,000 1,500 1,000
Production

000 Nutrients Tons

Off Take

1,600
Agronomic Requirement

1,400 1,200 1,000 800 600 400 200

000 Nutrients Tons

Off Take

Agronomic Requirement

500 1961 1970 1980 1990 2000 2010 2015

Production

1961

1970

1980

1990

2000

2010

2015

Trend towards our portfolio mix

Product Portfolio Sarsabz

Largest manufacturer and marketer of Nitrogen and Phosphate fertilizers in Pakistan Working for providing balanced nutrition to the crops Provides nutrients for all crops for the right stage of growth

Calcium Ammonium Nitrate (CAN)

Nitrogenous fertilizer with high efficiency

Nitrophos (NP)
Balanced combination Phosphate & Nitrogen

Urea
Worlds most common Nitrogen fertilizer

CAN Plant Ammonia Plant Urea Plant NP Plant

420,000 MTPA (Commissioned November 2009) 500,000 MTPA (Commissioned February 2010) 500,000 MTPA (Commissioned March 2010) 360,000 MTPA (to be commissioned May 2011)

Nitric Acid Plant 500,000 MTPA (Commissioned April 2010)

Urea Plant NP Plant CAN Plant Nitric Acid Plant CO2 Plant Ammonia Plant

92,400 MTPA 304,500 MTPA 450,000 MTPA 455,500 MTPA 63,360 MTPA 316,800 MTPA

Our Financial Advantage

The combined manufacturing capacity of Fatima Fertilizer and Pakarab Fertilizers is more than 2,500,000 metric tons per annumProt After Tax Turnover This translates into an annual combined turnover of more than USD 600 million
25,000 20,000 8,000
7,090

Fully integrated and diversified Nitrogen, Phosphate and Potash fertilizer producer 6,000 16,706 15,000 % Project cost of USD 750 million AGR 21% R 30 4,000 C CAG Largest fertilizer complex in Pakistan 9,102 10,000 7,069 5,954 2,000 947 acres for plant and township 1,442 1,359 5,000 685 Dedicated gas supply (110 MMCFD) under preferential rate of USD 0.70 MMBTU through a 10 year renewable contract 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 4 final product lines: Urea, CAN, NP & NPK (All except NPK in production) Financed with a Long Term Debt / Equity ratio of 55:45
Gross Prot Margin
80%

18,887

18,248

Fertilizer Companies Comparison

Name Country

Domestic Peer Comparison

20,000 15,000
66%

Shareholders Equity

Price/Earnings
60%

Price/ Book

EV/EBITDA

Gross profit margin

Company 50% CY2011E CY2012F

Potash Corp. of Saskatchewan China Blue Chemical Ltd. Chambal Fertilizers & Chemicals Ltd. Saudi Arabian Fertilizer Company J.L. Morison Son & Jones Mosaic Co. Agrium Inc. CF Industries Holding Inc. Yara International ASA Fauji Fertilizer Company Ltd. Engro Corporation Ltd. Fauji Fertilizer Bin Qasim Ltd. Dawood Hercules Chemicals Ltd. Fatima Fertilizer Company Ltd.
Note: Current year estimates on the basis of 2011 earnings EV/EBITDA on the current market price

Canada China 40% India Saudi Arabia 20% Sri Lanka United States 0% United States United States Norway Pakistan Pakistan Pakistan Pakistan Pakistan

19.26 20.37 40% 34% 9.10 13.40 12.90 19.92 2005 12.62 2006 10.81 8.63 9.56 17.82 6.42 12.54 10.95

7.52 2.59 38% 2.09 6.50 1.95 3.62 2007 2.76 2.54 2.35 7.84 2.75 3.99 1.17 0.83

2008

20.62 41% 12.53 8.16 15.58 6.72 14.29 2009 10.56 13.80 8.95 5.34 14.52 5.42 6.34 6.90

2010

Fatima Fertilizer Company Ltd. 10,000 Fauji Fertilizer Company Ltd. Engro Fertilizers Limited 5,000 Fauji Fertilizer Bin Qasim Ltd. Average Net profit margin
Company

1,532

57% 45% 5,839 47% 22% 43%

2006

59% 7,069 45% 46% 22% 43%

2007

11,976

2005

2008

CY2011E

CY2012F

Fatima Fertilizer Company Ltd. Fauji Fertilizer Company Ltd. Engro Fertilizers Limited Fauji Fertilizer Bin Qasim Ltd. Average

16% 26% 9% 9.6% 15%

19% 26% 11% 10.5% 17%

Source: Bloomberg

Financial Snapshot
USD million
Rate of exchange (Rs/US$)

2010 A
85.00 Trial Run

2011F
90.00 Trial Run Post COD*

2012F
92.70

350 300 250

Million USD

60%

80

0.06 0.05

55%
Gross Prot Margin Million USD

60 0.04 40 0.03 0.02 20 0.01

EPS

Total Sales Revenue Cost of Good Sold Gross Profit EBIT Profit Before Tax Profit After Tax Gross Profit Margin Net Profit Margin Interest Coverage Total Interest Charges EBITDA
* Commercial Operation Date

83.31 46.55 36.76 N A N A N A 55% N A N A 72.35 32.49

93 156.10 316.48 42 66.38 129.89 51 89.72 186.59 NA 82.56 172.67 NA 38.92 89.60 NA 24.36 59.02 57% 59% 16% 19% 1.99 2.26 42 76 90.84 188.32

200 50% 150 100 50 0 2010F 2011F 2012F Gross Prot Margin Total Sales Revenue 40% 45%

0 2010F Prot After Tax 2011F EPS 2012F

Acquired in 2005 under the privatization program of the Government of Pakistan Joint venture of Fatima Group and Arif Habib Corporation Shareholders modernized PFL substantially Putting up CDM equipment New CO2 plant New 30 MW power plant Substantial turnaround in profitability of the Company Plans to further revamp the complex Additional gas allocation has already been approved

Post Privatization Performance

25,000 25,000 25,000 25,000 20,000 20,000 20,000 20,000 15,000 15,000 15,000 15,000 10,000 10,000 5,954 10,000 10,000 5,000 5,000 5,954 5,000 5,000 2005 2005 5,954 5,954
CA

Turnover Turnover Turnover Turnover

18,887 16,706 18,887 18,887 16,706 21% R 21% GR G 9,102 18,887 18,248 16,706 18,248 16,706 18,248 18,248

8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 -

Prot After Tax Tax Prot After Prot After Tax Tax Prot After
8,000 8,000 6,000 6,000 4,000 4,000 2,000
685 2,000 685 2005 2005 685 685 1,442 1,442 7,090 7,090
% % R 30 AGR 30 CAG C % % R 30 AGR 30 CAG C

7,090 7,090 4,739 4,739 4,739 4,739 3,232 3,232 3,232 3,232

7,069 7,069

7,069 7,069

CA % 1% 9,102 GR 29,102 GR 21 CA CA

9,102

1,442 1,359 1,442 1,359

1,359 1,359

20052006 20052006

2006 2007 2006 2007

2007 2008 2007 2008

2008 2009 2008 2009

20092010 20092010

2010 2010

20052006 20052006

2006 2007 2006 2007

2007 2008 2007 2008

2008 2009 2008 2009

20092010 20092010

2010 2010

80% 80% 60% 60% 40% 40% 20% 20% 0% 0%

Gross Prot MarginMargin Gross Prot Gross Prot MarginMargin Gross Prot
80% 80% 60% 60% 40% 34% 40% 34% 20% 20% 0% 2005 0% 2005
40% 34% 34% 40% 40% 38% 40% 38% 38% 38% 66% 66% 66% 66% 41% 41% 50% 41% 50% 41% 50% 50%

20,000 20,000 20,000 20,000 15,000 15,000 15,000 15,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 -

Shareholders Equity Equity Shareholders Shareholders Equity Equity Shareholders

14,847 11,976 11,976 5,839 1,532 1,532 5,839 5,839 5,839 7,069 7,069 7,069 7,069 11,97614,847 11,976 14,847 14,84712,248 12,248 12,248 12,248

1,532 5,000

20052006 20052006

2006 2007 2006 2007

2007 2008 2007 2008

2008 2009 2008 2009

20092010 20092010

2010 2010

1,532 2005 2005

20052006 20052006

2006 2007 2006 2007

2007 2008 2007 2008

2008 2009 2008 2009

20092010 20092010

2010 2010

Other Highlights
Clean Development Mechanism, CO2 & Nitric Acid
Our fertilizer business also offers a wide range of other products that mostly stem from upgraded gas and chemicals coming out of the fertilizer production plants

350 350 300 300 250

Million USD USD Million Million USD USD Million

350 350 300 300 250 250 200 200 150 150 100

60% 60% 55%

Gross ProtProt Margin Gross Margin

60% 60% 55%

Million USD USD Million Gross ProtProt Margin Gross Margin

80 80 60 60
Million USD USD Million

80 80 60 60 40 40 20

0.06 0.06 0.05 0.05 0.04 0.04 0.03 0.03 0.02 0.02 0.01

0.06 0.06 0.05 0.05 0.04 0.04

EPS EPS

250 200 200 150

55% 50% 50% 45%

55% 50% 50% 45%

40 40 20

0.03 0.03 0.02 0.02 0.01 0 0

150 CDM at Pakarab Fertilizers 100

CO2 at Pakarab Fertilizers

Nitric Acid at Fatima Fertilizer 60% percent concentrated Nitric Acid 0.01 0.01 Sales of more than USD 0.50 million in 2010
2010F 2011F 2011F 2012F 0 2012F 0

100 100 Generation and sale of Certified Emission 50 50 Reductions (CERs) 50 50 Sales of more than USD 12 million in 2010 0 0 0 2010F 0 2010F 2011F

Sale of CO2 in liquid and solid form 20 20 45% 45% Sales of more than USD 3 million in 2010
2011F 2012F 40% 2012F 40% 40% 40% 0 0 0 2010F 0

EPS EPS

Our Initiatives

Farmers Support
We know our long-term success is linked to the success of the thousands of farmers who grow crops. Thats why we work on-the-ground with farmers and educate them the proper use of fertilizers to help improve yields. Mission Statement Enhance farm productivity & profitability by improving farmers knowledge & perception on balanced fertilizer use. Technical Services Team Activities for the farming Community Seminars Farmers meetings Farm visits / individual contacts Product demonstrations & Field days Technical Literature Biological Control Service Soil Sample Analysis

Our CSR Initiatives

Mukhtar A. Sheikh Memorial Welfare Hospital A Kidney and Psychiatric Hospital in Multan Total project cost of USD 23 million approximately Free treatment to all workers of EOBI or ESSI Flood Relief Actively involved from the very outset of the disaster More than USD 200,000 donated LUMS National Outreach Program (NOP) Leading University of Pakistan Support to deserving students Sponsorship of 2 students / year 4 years degree program USD 75,000 / annum Support to NGOs / Charitable Organizations Monthly donations to Hospitals Support to WWF Donations total up to USD 60,000 / annum

Fatima Fertilizer Company Limited

Contact: 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