Copy of Al Ghazi Tractors

Al-Ghazi Tractors Ltd [AGTL] RAW DATA (Rs mn) SALES Tractors Trading goods 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 DISTRIBUTION COST Salaries, wages and benefits Charge for defined benefit plan Charge for defined contribution plan Rent, rates and taxes 2004 2005 2006 2007 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 ### 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 ### 28 1 1 1 32 2 1 37 1 1 1 3 34 36 5 32 ### 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 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 1 6 3 1 2 5 2 1 1 - 6 3 1 2 11 1 1 - 6 3 1 2 9 3 2 - 1 1 - 1 53 1 61 1 65 1 67 42 1 1 51 1 1 1 6 5 4 58 1 1 5 5 4 6 1 2 1 1 - 5 1 2 1 - 46 3 1 1 5 5 4 1 5 1 3 1 1 - - 4 - 68 80 80 86 185 70 1 - 480 66 4 - 466 60 17 - 1 257 1 550 543 5 4 4 1 5 2 2 1 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 6 4 1 1 10 - Income from investments in COIs- related parties 2 37 4 - Income from other assets Scrap sales Profit on disposal of fixed assets Others 7 4 1 7 6 3 2 12 1 3 2 OTHER OPERATING EXPENSES Workers' Profits Participation Fund Workers' Welfare Fund FINANCE COST Interest on Workers' Profit Participation Fund Bank charges and commission Mark-up on security desposit Mark-up on short-term loan TAXATION Current Deferred 12 121 9 303 10 565 16 559 80 28 108 88 34 122 103 39 142 103 39 142 3 2 5 2 2 3 6 8 3 3 520 (1) 519 577 (2) 575 645 36 681 640 7 647 Opening cost Additions Disposals Closing cost 382 30 175 237 237 6 9 234 234 206 8 432 432 23 6 449 Opeing depreciation Charge for the year Disposals Closing depreciation NBV 171 15 21 165 72 165 15 8 173 61 173 17 8 182 250 182 28 6 204 245 13 85 98 159 2 252 245 2 4 3 9 4 9 3 15 2 6 5 6 8 10 637 11 648 671 47 22 740 723 5 3 731 695 10 5 709 FIXED ASSETS Capital work-in-progress- civil work Intangible assets STORES, SPARES AND LOOSE TOOLS Stores Spares Loose tools STOCK IN TRADE Raw materials and components Finished goods- tractors Trading stock- spare parts and implements TRADE DEBTS- considered good Secured Unsecured LOANS AND ADVANCES- considered good Loans to employees Dealer car loans Advances to suppliers for goods and services SHORT-TERM DEPOSITS AND PREPAYMENTS Security deposits Prepayments ACCRUED MARK-UP Mark-up accrued on Certificates of investment(COIs) Deposit accounts with banks 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 REFUNDS DUE FROM THE GOVERNMENT Sales tax Special excise duty INVESTMENTS Held to maturity- Certificates of Investments(COIs) Investments at fair value through profit and loss account CASH AND BANK BALANCES With banks on Current accounts 1 7 8 1 6 7 1 5 6 1 23 24 2 6 34 41 2 6 31 38 1 6 16 23 1 18 20 6 4 10 7 4 11 3 3 1 9 15 24 22 63 85 48 198 246 45 182 227 - - 140 1 140 0.038 8.247 0.381 0.133 ### 180 180 382 382 260 260 167 16 184 950 950 700 51 751 500 27 527 500 519 ### 509 1,232 538 905 - - 1 2 3 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 - - 34 34 34 7 40 - 6 4 13 23 - 6 15 21 12 6 14 21 19 Debit balances arising on account of: Deferred staff benefits- compensated absences Excess of accounting depreciation over tax depreciation Royalty payable 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 13 7 Deferred staff benefits- compensated absences 19 18 17 18 Deferred taxation 21 23 - - Taxation payable 97 105 - 26 - 78 - Taxation receivable 1 530 2 73 75 3 73 ### 41 1 1 48 () 1 .025 1.201 15.046 5 27 31 2 29 8.963 129 5 134 ### 187 11 198 ### 9.522 162 180 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 9.2008 2009 10.516 12.105 10 1.858 41 105 10.501 13.025 83 8.014 11.242 15. 7 3 1 1 11 5 2 - 8 3 1 1 17 4 1 2 - 1 75 88 64 1 2 5 6 4 80 () 2 6 7 4 1 5 2 2 2 - 5 2 1 1 1 92 111 310 34 (7) 45 1 383 335 14 45 1 396 - - 13 3 1 12 2 1 . 168 83 3 1.025 2 1.254 .931 1.17 399 16 411 90 34 125 143 54 197 2 3 2 2 562 8 570 911 4 915 449 16 9 456 456 48 4 499 204 27 9 222 233 222 29 4 247 253 2 235 253 9 5 15 6 6 12 905 1. 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 1 7 - 2 10 3 11 671 80 751 1.457 200 247 447 145 145 757 1.319 138 1.162 . 361 231 3.349 1.2.513 14 21 5 37 49 4 2.479 881 3.522 34 34 39 39 7 7 27 8 8 31 868 99 1.612 1.364 242 125 16 22 9 58 67 4 1.907 10 3 19 22 - - - - 113 531 . 635 575 1.930 1.8% .783 16.70 42.643 21.0% 10.852 104 8 7.148 120 6 9.914 647 1.428 1.658 1.858 15.910 681 1.806 (Earnings per share ) 22.917 21.119 12.113 11.Tractors ) (Sales .653 18.94 40.683 570 1.9% 18.744 1.61 42.137 1.52 42.735 5.547 2.267 14.164 46 9.6% 75 92 399 125 1.023 7.201 41 ### 129 5 ### 8.7% 9.659 2.081 7.1% 65 80 565 142 1.1% 3 1.94 25.94 28.63 42.229 13.060 13.387 1.774 16.764 88 7.802 11.0% 24.690 2.94 29.1% 6 1.94 (EBITDA ) 2009 2010 15.836 93 8 6.484 519 965 14.913 21.661 2.102 46 9.772 915 970 1.1% 2 2 2.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 ) 2004 2005 2006 2007 2008 6.602 20.94 1.137 1.3% 7.439 105 103 ### ### 187 201 11 11 ### ### 13.1% 11.2% 8 1.47 (ordinary share outstanding(thousands) ) 42.530 1.97 42.7% 61 80 303 122 1.8% 18.777 59 6.2% 67 86 559 142 1.(Al-Ghazi Tractors Ltd [AGTL] ) (INCOME STATEMENT ) ((Rs mn) ) (Sales .7% 53 68 121 108 1.93 42.210 123 5 9.578 15.2% 88 85 111 138 411 420 197 205 2.946 1.713 2.598 23.635 18.6% 9.739 6.94 41.2% 3 1.490 22.7% 3 1.646 2.686 16.505 1. 006 3.201 .666 18.532 15.155 17.94 47.94 2.051 1.48 42.103 1.861 1.1% 17.96 42.94 43.049 10.865 3.94 45.2% 11.729 2.825 17.024 16.766 2.1% 2 2 2 2 2.258 2.153 1.2% 17.004 3.630 1.2% 17.1% 11.863 3.728 2.549 107 112 118 123 ### ### ### ### 209 219 230 242 11 12 13 13 ### ### ### ### 13.049 3.009 3.866 3.953 2.73 42.180 13.1% 17.840 14.2% 17.2% 17.904 3.159 17.34 42.2% 88 93 97 102 143 150 158 166 435 454 475 497 202 212 223 234 2.002 1.1% 11.730 2.2011 2012 2013 2014 16.1% 37.098 1. 000 1.518 ### 195 215 215 215 215 215 215 1.000 1.612 1.148 2.550 3.000 1.050 5.335 2.000 1.025 6.019 447 145 2.050 3.205 5.931 1.000 1.125 ### ### ### ### ### ### 11 1.637 3.349 3.938 2.581 6.912 2.213 4.448 4.063 8.699 2.523 13 61 15 254 15 1.612 1.155 3.907 2.072 3.385 3.402 ### ### ### ### ### ### ### 1 1 1 1 TRUE 1 1 .545 4.840 7.907 2.421 1.142 4.857 2.616 3.428 5.699 2. 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 Total equity & liabilities Check 159 7 252 245 1 235 10 253 3 281 3 21 120 23 189 253 246 246 256 284 9 15 8 10 15 12 648 740 731 709 1.000 1.056 7.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.363 Non-current liabilities Deferred staff benefits.000 1.457 950 751 527 1.851 4.417 145 5.420 6.017 5.254 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 1.402 97 105 26 1.522 4.060 7.compensated absences Deferred taxation Current liabilities Trade and other payables Taxation payable 85 13 19 19 18 18 17 12 30 18 19 38 19 27 47 22 31 53 38 38 1. 471 1.852 14 15 15 16 64 67 70 74 16 17 18 18 263 275 289 302 16 17 18 18 1.230 10.134 215 1.000 8.631 2.922 8.504 2.000 1.735 8.702 145 145 145 145 5.478 11.600 1.764 1.544 1.016 9.680 1.901 ### TRUE TRUE TRUE .763 ### 2.004 9.2011 2012 2013 2014 306 3 328 3 346 3 360 3 309 331 349 363 12 12 13 14 1.688 13.369 10.206 9.763 2.000 6.136 40 40 42 42 2.621 1.769 6.901 2.862 9.631 ### 2.678 TRUE 215 215 1.504 9.000 5.920 7.421 44 44 46 46 2.707 7.678 ### ### ### 215 1. 113 1.52 25.000 1.intrim Closing Balance 195 195 GENERAL RESERVES Opening Balance Transfer from unappropraited profit Closing Balance 1000 1.00 ### ### ### ### ### ### ### ### Cash Dividend Bonus shares 300% 350% 350% 350% 350% 400% 400% 400% 10% - .61 41.50 17.000 1.000 1.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 .267 1 ### ### ### ### ### ### ### ### 215 215 215 215 215 215 215 215 2.00 17.335 (390) (390) (537) (537) (20) (195) (215) (215) (215) (215) 965 1.630 ### ### ### ### ### ### ### ### EPS DPS Payout ratio 24.802 1.148 (322) (537) (859) (859) (215) (215) 1.50 17.042 1.00 20.000 1.50 17.63 29.060 1.72 24.229 1.421 1.000 1.97 37.93 40.744 1.96 15.857 2.70 28.000 ### ### ### ### ### ### ### ### 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 20 215 215 215 215 215 1.000 1.637 3.50 20.205 5.213 4.00 20. 000 1.922 8.2012 2013 2014 215 215 215 215 215 215 1.34 45.48 47.016 9.9% 400% - 400% - 400% - .920 6.00 20.00 20.00 ### 44.000 ### 1.016 (859) (859) (859) 1.000 1.206 ### 9.000 1.73 20.016 ### 43.953 2.861 1.049 ### 8.000 5.0% 41. 636 1.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 (2) 22 (18) 3 2 (3) 76 81 (43) 19 6 56 38 33 (13) 96 (90) (111) 2 3 250 136 94 6 398 225 345 44 7 513 476 (535) 1 (59) (576) (701) 1 ### (21) (18) 2 3 (975) ### 500 1.709 483 349 62 58 () (9) 50 992 .398 1.740 1.192 Increase in long-term deposits () () Income taxes paid (480) (569) (828) Increase in deferred staff benefits .Al-Ghazi Tractors Ltd [AGTL] STATEMENT OF CASH FLOWS (Rs mn) 2004 2005 2006 2007 2008 CASH GENERATED FROM OPERATIONS Profit before taxation 1.904 3.598 (352) ### (85) 517 ### (181) (923) ### ### ### ### 476 (576) CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations 1.598 (352) ### (85) 715 2.326 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. Increase/(decrease) in current liabilities Trade & other payables Working capital changes Cash generated from operations (6) (92) 1 3 (1) 131 37 (202) (198) (167) (269) 11 (21) 44 7 9 1 15 8 8 122 171 CASH FLOW FROM FINANCING ACTIVITIES (4) ### 17 (18) (15) (7) (567) ### 715 2.484 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 ### ### ### 1.914 1.910 1. Dividends paid (584) (601) (751) (749) (752) (584) (601) (751) (749) (752) Net increase/(decrease) in cash & cash equivalents Opening cash & cash equivalents Closing cash & cash equivalents 937 ### 125 (758) ### 1.385 3.113 2.349 .142 4.017 5.050 5.385 ### ### ### 4. 659 2.863 3.2009 2010 2011 2012 2013 2014 2.554 1.554 ### 3 227 (46) 3 (400) 747 355 30 7 696 ### ### ### ### ### .004 3.291 3 678 (13) 5 4 (1) (707) (31) (706) (706) (737) 1.772 2.153 29 (2) (45) (335) (14) 2.728 2. 522 .349 3.(750) (750) 173 3. 6% 35.405 9 3 2.796 411 18.967 25 10 1.7% 13.Tractors ) (Sales .411 .5% 1 578 187 32.11 43 43 43 43 43 43 29.0% 19 20 131 31 415 21.3% 391 13.6% 1 500 357 178 125 35.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) ) 2.0% 322 232 13.419 554 18.991 24 3.6% 1.223 11 2.1% 1 519 414 154 142 29.00 4.0% 308 13.520 39 1.609 353 18.4% 2.947 26 1.2% 12.00 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 ) 1.788 2.2% 7.6% 2.3% 365 272 14.1% 16 22 146 38 520 20.982 1.584 46 25 1.34 7.605 1.6% 19 23 110 43 579 19.031 450 18.467 36 1.4% 2.3% 1.481 2.50 6.453 14 2.608 313 16.041 25 46 2.00 8.50 5.2% 2.52 Quarterly Earnings 14.600 2.020 1.962 1.3% 1.1% 14 22 133 37 500 20.00 12.921 1.207 1.432 1.947 1.1% 2.9% 2 481 173 36.014 41 1.17 8.9% 2.504 16 2.808 5 25 1.3% 18 24 113 26 358 18.7% 34.9% 1.00 10.00 6.6% 19 22 148 36 483 21.599 10 9 1.987 26 1.984 4 1.974 2.40 9.9% 2.(Al-Ghazi Tractors Ltd [AGTL] ) (QUARTERLY INCOME STATEMENTS ) ((Rs mn) ) (Q1'07 )(Q2'07 )(Q3'07 )(Q4'07 )(Q1'08 )(Q2'08 ) (Sales .00 2.992 440 18.234 28 1. 609 9 1.395 0.504 2.992 9 1.Tractors Cost of sales .854 11.542 14.343 0.321 6.354 7.020 1.485 14.331 7.369 16.257 5.984 1.788 2.597 5.708 8.190 14.282 0.319 80.738 7.725 6.091 5.357 0.214 6.6% .280 0.467 12.991 2.8% 82.283 12.2% 80.545 7.146 5.982 1.351 0.293 0.4% 80.574 13.903 6.(Trading goods ) PRODUCTION Al Ghazi Tractor Millat Tractor TOTAL SALES Al Ghazi Tractor Millat Tractor TOTAL 7 1.453 1.223 1.463 13.836 7.914 8.031 4 1.107 Sales .419 6.458 7.608 8 2.796 11 2.Tractors 2.281 0.600 2.270 11.671 7.565 7.122 15.349 0.791 8.605 2.947 1.277 0.166 16.411 Sales Price/tractor (Rs mn) Cost/tractor Cost/sales 0.069 5.346 0.7% 80.179 5.9% 80.030 6.455 7. 1% 35.496 3.070 48 1.374 54 1.994 2.573 746 17.7% 2.508 3 14 2.319 3.715 1.5% 23 31 82 58 790 17.000 229 10.7% 4.5% 2.760 4 2.502 482 16.249 14 2.2% 24 23 105 37 503 16.2% 516 11.10 12.433 3.3% 14 22 71 18 245 11.014 4 3.582 831 18.022 3.7% 12.8% 24 37 70 58 782 17.72 11.8% 14 20 100 41 539 19.331 42 4.550 3.7% 1 765 538 261 189 34.4% 3 573 198 34.222 514 18.2% 4.0% 521 11.368 7 4.8% 4.6% 375 8.451 37 0.92 3.004 14 1.542 3 1 3.8% - 4.4% 1 777 301 38.413 3.736 2.737 3.229 2.74 8.202 820 20.4% 6.375 78 1.3% 31 29 134 56 765 17.297 3.(Q3'08 )(Q4'08 )(Q1'09 )(Q2'09 )(Q3'09 )(Q4'09 )(Q1'10 )(Q2'10 ) 3.544 2.196 - .018 34 1.8% 790 269 34.9% 2.7% (1) 783 268 34.764 29 1.4% 21 30 68 58 778 19.7% 4.671 1 456 2.304 83 192 3.8% 4.2% 4.3% 38.9% 340 150 11.263 33 1.025 1.8% 7.7% 4.49 8.025 3 3.399 52 4.0% () 503 246 162 96 32.61 ings 7 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 2.8% 4.215 3.14 12.7% 477 11.01 11.742 555 12.1% 504 349 11.14 43 43 43 43 43 43 43 43 25.93 40.9% 20 25 108 42 575 13.177 456 83 3.613 820 18.1% 2.062 8 4.984 2.0% 2. 251 9.399 0.062 3.319 8.937 6.470 0.000 5.535 2.145 12.216 14.856 18.370 8.491 0.346 7.393 5.036 8.196 0.368 3.947 18.358 0.7% 85.171 18.992 9.994 4.7% 7.895 5.408 10.402 0.760 2.202 - 7.450 0.426 19.285 8.395 0.222 32 3.406 17.331 3.863 20.307 15.3% 80.333 6.532 10.550 4.303 11.957 9.962 8.215 4.582 7 3.505 0.955 8.5% 81.399 3.827 11.550 6.7% 78.970 4.4% - 3.014 2.491 0.141 10.502 6.396 0.8% 80.729 6.143 3.948 8.870 5.216 6.151 11.414 8.432 0.919 17.737 4.400 0.544 2.901 10.615 8.763 7.766 20.742 29 3.040 3.398 82.488 0.696 8.0% .496 2.336 12.8% 88.216 12.851 18.000 7.573 6 2.6 2.249 1.498 14. 4% 21.1% 16.52 25.5x 3.5x 10.6% 16.55 82.1x 0.4% 24.6x Debt to equity .Interest bearing liabilities Debt to equity .9% 11.6x - 1.50 17.6 1.1% Asset turnover 1.5 1.6x 615.2x 37.8x 34.7% 20.1% 18.5x 35.0% - 14.1% 99.1% 34.5% 21.6% 14.7% 13.4% 21.0 2.9% 6.12% 59.4% 9.8% 21.4x 1.9 1.6% GROWTH Sales growth EBITDA growth Net profit growth GENERAL RATIOS BVPS EPS DPS Payout Ratio LIQUIDITY Current Ratio Quick Ratio OPERATING RATIOS Total assets turnover Receivables turnover Inventory turnover 64.3% 9.70 28.49% 49.1% 1.23 24.6x Return on equity (ROE) 5-step Dupont analysis 36.1% 15.1% ### 66.25% 2.1x 1.4% equity (ROE) 36.3% 13.4% 99.3% 0.4% 14.7% 11.70 103.6% 16.6x RETRUNS Tax burden 65.6 2.0% 56.3x 1.1x ### 8.8% 13.6x 1.3x 1.9% 67.7x 26.3% 2009 23.3% basis 14.29% 67.5x 37.7 3.2% PROFITABILITY MARGINS Gross profit margin EBITDA margin Net profit margin 64.Al-Ghazi Tractors Ltd [AGTL] RATIOS 2004 2005 2006 2007 2008 CAPITAL STRUCTURE Interest cover 264.Total liabilities 0.8% 17.72 24.5x 691.9% Return Return Return Return on on on on 0.2% 22.9% 2.1% -12.1x 2.50 17.63 29.1% 16.6% EBIT margin 22.6% 10.2 1.0% 26.7% 1.2% 8.7 1.4x 1.4x 217.EBIT28.9% 99.6x Financial leverage 1.7x 643.50 20.00 ### 70.00 17.0% 16.0% 3.7 2.1x ### 8.93 40.9% 16.8% -12.3% 37.4% 8.9 1.8x 0.7% 10.9% 21.2x 2.8x 635.3% 14.2% capital employed (ROCE) .9% 18.3% basis 9.1% 11.8% assets (ROA) 23.50 17.0% 35.0x 10.8x 1.3% 21.1% 0.2x .0% 57.4x 66.0% Interest burden 99.2% 1.02 71.3% 12.2x 1.2% 99.2 2.1% 18.5% capital employed (ROCE) .4x ### 597.2% 1.7% 18.8% 16.86% 61.68 89.3x 6.1 2.9% 37.9% 16.12 126.9% 65.PAT 18.9% 15.6% 99.2% 56.61 15. 6x days ### ### ### .1x - ### 21.1x days days 1 days 1 days ### ### ### ### 6 days 3 days days ### ### ### ### ### 10.Payables turnover Debtor days Inventory days Creditor days Cash Conversion Cycle - 59.9x 111. 2% 6.1% 18.9% 17.3% 11.3% 24.0% 16.68% 46.2010 2011 2012 2013 2014 ### ### ### ### ### 0.4% 11.4x 4.2% 5.9 1.0% 5.4% 6.4% 11.1 1.5x 1.00 47.1% 17.2% 18.2% 22.5% 5.6% 59.0% 99.3x 0.5 3.0x 3.2% 1.9% 17.20 166.7x 911.7x 1.0% 4.2% 17.6% 11.6 1.3% 3.98 242.4x 20.1% 1.8 1.5x 30.4x 24.2% 8.3x 65.9% 148.9% 17.0% 14.0% 99.66% 52.0 3.00 20.5% 5.3% 3.00 20.98% 41.6% 8.97 37.5% 65.9% 18.2% 65.2% 17.15% 43.16 189.2% 17.9% 5.1% 9.6x ### 8.5 2.3 1.8% 17.7 3.50 214.5x ### 8.6x 1.8% 99.7% 22.4x 22.0% 99.1% 20.6% 17.4x ### 8.6% 24.4x 24.4% -9.8% 4.9% 17.1% 1.00 20.91% 3.0% 99.5x 1.6% 7.96 43.48 47.9% 30.4% 10.0% 10.4x 0.4x 4.5x ### 8.2% 17.70 41.4x .34 45.4% 11.1% 17.1% 1.1% -2.0% 5.73 20.6x 9.8% -1.4x 4.4x 1.2 3.00 20.4% 65.4x 0.9% 5.0% 4.1% 1.1% 17.2% 17.0% 5.3x 0.3% 18. 8x days ### ### ### 10.7x days ### ### ### 10.8x days ### ### ### .8x days ### ### ### 10.6x days ### ### 3 days 10.9. 393 46.914 60.675 22.223 1.043 26.322 10.349 0.671 7.595 70.458 7.281 0.346 0.282 0.135 22.565 7.514 49.936 23.791 8.281 19.000 60.293 0.725 6.574 13.122 15.000 45.276 49.255 11.319 80.340 26.854 11.000 30.012 38.280 0.354 7.000 30.000 60.339 24.000 30.214 6.6% .504 2.930 38.982 8.000 60.708 8.Tractors 2.2% 80.351 0.600 2.166 16.351 19.453 1.277 0.107 Sales .914 8.030 6.000 30.732 6.670 27.543 53.4% 80.713 53.394 27.Tractors Cost of sales .545 7.113 67.321 6.051 64.132 23.369 16.997 51.243 19.597 5.563 36.000 30.984 1.455 7.738 7.000 30.346 56.901 55.000 15.283 12.788 2.732 37.542 14.903 6.485 14.000 15.989 26.985 26.257 5.928 54.605 2.982 1.069 5.351 27.000 30.000 30.327 70.357 0.331 7.129 23.179 5.091 5.270 11.275 26.395 0.463 13.000 30.146 5.9% 80.000 19.373 24.836 7.896 32.8% 82.000 15.411 Sales Price/tractor (Rs mn) Cost/tractor Cost/sales 0.327 (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 6.467 12.000 15.343 0.550 30.420 49.2004 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 15.190 14.7% 80.020 1.947 1.643 7.991 2.550 27.267 46. 7% - - 57% 44% 52% 45% .432 0.931 20.145 12.550 6.014 2.307 15.396 0.7% 78.766 20.580 55% 50% 45% 16.141 10.919 17.400 0.171 18.544 2.151 11.8% 88.5% 81.7% 85.729 6.851 18.000 30.970 4.505 0.358 0.216 6.532 10.470 0.550 4.696 8.370 8.957 9.062 3.937 6.972 37.249 1.955 8.488 0.870 5.414 8.215 4.216 14.895 5.196 0.406 17.827 11.036 8.346 7.615 8.398 82.763 7.331 3.3% 80.333 6.216 12.737 4.498 14.962 8.408 10.994 4.903 40% 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 QoQ YoY 37.8% 80.868 37.399 0.395 0.402 0.491 0.856 18.901 10.948 8.000 60% 16.491 0.319 8.368 3.000 60.393 5.863 20.712 20.2010 30.947 18.303 11.336 12.251 9.000 7.992 9.285 8.426 19.040 3.399 3.760 2.903 45% 50% 49% 48% 49% 52% 53% 49% 44% 50% 47% 45% (Q3'08 )(Q4'08 )(Q1'09 )(Q2'09 )(Q3'09 )(Q4'09 )(Q1'10 )(Q2'10 ) 7.450 0.496 2. 2'09 Q3'09 Q4'09 Q1'10 Q2'10 49% 45% 42% 44% 45% . 4% 140 1 2 .9% 6.0% Sales price/tractor YoY growth 0.Al-Ghazi Tractors Ltd [AGTL] ASSUMPTIONS 2004 2005 2006 2007 PLANT CAPACITY AND PRODUCTION Plant capacity -units Actual production .972 5.351 ### 148.272 2.695 79.7% 0.347 -0.tractors YoY growth 19.135 22.739 9.3% 1.851 6.units Capacity utilization 15.348 0.3% 8 8 6 5 0.129 26.8% Sales .2% 80.3% 1.735 7.9% 83.081 COST OF GOODS SOLD Raw material used in production Opening balance Purchases Raw material availabe for production as % of tractor sales 412 637 671 723 5.279 2.9% 86.210 93 104 120 123 1.836 7.897 6.6% 83.3% 0.9% 121 2 2 723 9.102 46 0.6% 695 9.280 0.0% 1.023 9. wages and benefits Charge for defined benefit plan Charge for defined contribution plan 4.2% 0.340 26.000 15.1% 17.1% 0.348 -1.000 30.3% Cost/Sales 75.845 75.1% 84.775 70.412 6.0% 6.000 30.1% 0.7% 0.148 9.568 7.043 26.001 76.4% 1.2% 80.000 5.7% SALES Tractors Trading goods Commission and discounts Sales tax 6.0% Closing balance as % of raw material available 637 671 11.339 26.852 9.243 22.000 19.1% 0.777 59 0.5% 9.3% Cost/tractor YoY growth 0.352 0.1% 101 112 126 128 6.164 46 0.394 16.764 88 1.8% 87.1% 7.2% 132 1 2 7.265 0.488 7.5% 9.8% 10.3% Manufactured goods Raw materials and components consumed as % of tractor sales Salaries.2% 78.5% 105 1 2 5.816 74. 121 47 0.4% 7.8% 6. wages and benefits Charge for defined benefit plan Charge for defined contribution plan Rent. wages and benefits Charge for defined benefit plan Charge for defined contribution plan 95 50 1 9 13 6 6 1 1 1 1 293 4.1% 7.7% 108.258 47 5 0.401 5 10 0.8% 42 1 1 32 2 1 37 1 1 1 39 1 1 6 3 1 2 11 1 1 - 6 3 1 2 9 3 6 4 1 1 10 1 61 0.1% 7.8% 46 3 1 2 1 65 0.096 67 70 1 9 14 5 8 1 1 1 2 305 3.396 6 11 22 16 45 73 82 34 52 85 104 50 87.5% 225.137 6. 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.5% 7.9% 11 22 16 5 40 63 88 45 5.075 126 100 1 10 17 5 14 2 1 1 2 413 4. vehicle running and entertainment Depreciation/ amortisation Fuel.137 7.387 7.7% 58 1 1 . power and electricity Travelling.300 85 112 1 20 20 5 9 2 1 1 2 400 4.3% 5.068 28 0.7% 51 1 1 1 1 1 67 0.441 28 1 1 1 1 6 3 1 2 5 2 1 1 1 53 0. rates and taxes Repairs and maintenance Travelling. vehicle running and entertainment Repairs and maintenance Rent.6% 96.0% 5. 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 Trading goods Opening stock Purchases Closing stock DISTRIBUTION COST Salaries.9% 6.Royalty and technical fee Stores and supplies Insurance Depreciation Fuel. 9% 10.5% 14.2% 121 80 28 108 6.2% 34 70 66 60 3. vehicle running and entertainment Rent.1% 11.9% - 86 0.related parties Income from other assets Scrap sales Profit on disposal of fixed assets Others as % of net sales 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 1 6 5 4 5 5 4 6 1 2 1 1 - 5 1 2 1 - 1 5 5 4 1 5 1 3 1 1 - - 4 - 5 4 4 1 5 2 2 1 68 1.2% 559 88 34 122 6.8% 37 7 4 - 2 9 0.9% 3 2 5 2 2 3 6 8 3 3 .9% 103 39 142 6.9% 20 1 4 17 6 (1) 1 1 108 257 551 543 2 7 4 1 12 0.net Others Income from investments in COIs. 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.0% 80 1.1% 565 12 1 3 16 0.9% 48 185 480 466 3.Consultance fee Travelling.2% 4.9% 103 39 142 6.1% 304 6 3 2 10 0.0% 13.6% 10.0% 80 0. 3% 33.TAXATION Current Deferred Effective tax rate 520 577 645 640 (1) (2) 36 7 519 575 681 647 35.1% 9 234 234 206 2.3% 1 18 20 0.considered good Secured Unsecured 1 7 8 Receivable days Receivables turnover LOANS AND ADVANCES.3% 6 204 245 98 159 2 252 245 2 6 5 6 Capital work-in-progress.2% 8 0.4% 175 237 237 6 0.2% .5% 1 1 5 23 6 24 days 1 days ### 597. SPARES AND LOOSE TOOLS Stores Spares Loose tools as % of net sales STOCK IN TRADE Raw materials and components Finished goods.5% 21 165 72 165 15 6.spare parts and implements 13 85 2 4 3 9 0.6% 8 173 61 173 17 3.1% 637 11 648 Inventory days Inventory turnover TRADE DEBTS.3% 8 432 432 23 0.3x 1 6 7 days ### 2 6 31 38 0.1% 671 723 695 47 5 10 22 3 5 740 731 709 ### ### ### 8.9% 8 182 250 182 28 6.0x 10.considered good Loans to employees Dealer car loans Advances to suppliers for goods and services as % of net sales 2 6 34 41 0.8x 10.tractors Trading stock.7x 1 6 16 23 0.4% FIXED ASSETS Opening cost Additions as % of net sales Disposals Closing cost 382 30 0.3% 6 449 Opening depreciation Charge for the year Depreciation rate Disposals Closing depreciation NBV 171 15 6.0% 35.6% 4 9 3 15 0.1% 10 0.8% 33.civil work STORES. 6% 48.Certificates of Investments(COIs) Investments at fair value through profit and loss account Cash in hand 7 4 11 0.385 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 .019 509 1.0% 9 15 24 1.590 3.1% 9 0.0% 1 0.194 17 26 14 190 2.142 4.9% 260 260 2.0% 1 2 3 0.1% 0.2% 2.128 4.6% 50.050 5.SHORT-TERM DEPOSITS AND PREPAYMENTS Security deposits Prepayments 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.1% 8 1 - - - 140 2.holding company Due from CNH Italia SpA-associated company Workers' profits participation fund Due from Staff Provident Fund Due from Employees Gratuity Fund Others 3 3 0.1% 140 as % of net sales CASH AND BANK BALANCES With banks on Current accounts Deposit accounts excess cash as % of sales Demand drafts in hand 6 4 10 0.0% - REFUNDS DUE FROM THE GOVERNMENT Sales tax Special excise duty as % of net sales INVESTMENTS Held to maturity.7% 382 382 4.232 538 905 1.525 3.033 4.9% 167 16 184 2.0% 22 63 85 1.759 4.0% 180 180 2.017 5.8% 45 182 227 6.289 22.9% 48 198 246 4.991 5.9% 36.0% 950 950 700 51 751 500 27 527 500 519 1. 912 Long-term deposits Long-term loans Deferred staff benefits.200 2.377 3.3% 1 17 0. (269) 11 (21) 44 37 (198) (6) (92) 1 3 (1) 131 (202) (167) 7 9 1 15 8 8 122 171 (2) 22 (18) 3 2 (3) 76 81 .compensated absences as % of cost of sales 13 19 0.4% 7 18 0.220 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 1.9x 111.1% 39.517 3. .1% 1.699 2.associated company Others as % of cost of sales 71 6 4 13 23 - 6 15 21 12 124 6 days 3 days 59.2% Deferred taxation 21 23 - - Taxation payable 97 105 - 26 - 78 - Taxation receivable OPERATING WORKING CAPTAL Stores & spares Stock-in-trade Trade debts Loans & advances Short-term deposits & prepayments Other receivables Refunds due from the Govt.050 3.448 4.8% 64.compensated absences Excess of accounting depreciation over tax depreciation Royalty payable - 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.Debit balances arising on account of: Deferred staff benefits.926 3.0% 50.1x 6 14 21 19 6 days ### 271 205 272 246 935 3.906 26.699 2.V.2% 18 0. Trade & other payables 715 715 2.004) (352) (1.004) (181) (923) .598 2.432 (352) (1.598 Net change in working capital 517 2. 626 9.548 1.6% 0.024 16.000 30.0% 86.8% 77.3% 84.6% 0.784 18.0% 87.642 15.825 17.561 5.8% 83.1% 243 ### 242 1.014 11.4% 0.8% 77.2% 80.8% 10.4% 17.242 15.618 5.484 17.2% 1.1% 198 ### 201 1.1% 1.421 9.786 12.351 30.2% ### ### ### ### 24.2% 1.3% 11 0.985 32.549 41 105 103 107 112 118 123 0.666 18.8% 162 180 2 () 2 2 .945 14.2% 1.8% 77.168 13.130 16.470 5.2% 1.439 16.475 1.114 12.963 15.7% 0.1% 220 ### 219 1.000 91.7% 0.0% 0.6% 83.000 30.3% 12 0.000 30.6% 0.3% 31.496 5.8% 77.858 15.3% 5 0.4% 72.000 30.436 88.351 30.7% 0.3% 13 0.1% 255 ### 695 905 1.919 12.7% 76.094 13.0% 0.2% 101.168 9.282 13.000 30.1% 212 ### 209 1.0% 905 9.0% 0.1% 232 ### 230 1.548 9.6% 18.937 17.542 16.2% 9.2008 2009 2010 2011 2012 2013 2014 30.0% 0.8% 101.524 13.589 5.2% 1.000 30.000 30.749 14.0% 0.340 0.7% 10.522 11.732 -5.2% 11 0.673 129 1.143 97.7% 0.3% 11 0.0% 87.3% 83.000 27.6% 0.509 5.861 12.408 0.201 15.707 9.224 11.399 21.3% 82.524 5.3% 13 0.421 1.626 9.7% 0.0% 87.000 30.8% 84.475 9.690 13.445 5.0% 134 ### 187 1.517 9.374 16.3% 82.421 5.0% 0.550 30.470 13.0% 87.168 1.826 14.534 5.7% 0.000 30.1% 0. 0% 4.96 153 162 166 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 4.178 10 1.046 12.2% 71.105 12.7% 0.455 15.0% 9.6% 88 0.476 13.0% 4.7% 64 1 2 88 0.501 13.107 13.6% .025 83 86 90 95 100 104 10.7% 8.2% 71.7% 0.450 15.2% 2 3 3 3 3 3 3 29 73 71 73 77 81 85 8.7% 0.7% 4.8% 0.6% 80 () 2 85 0.2% 71.0% 4.7% 0.7% 71.025 83 86 90 95 100 1.767 14.111 13.530 ### ### ### ### ### ### 41 1 1 48 () 1 7 3 1 1 11 5 8 3 1 1 17 4 1 2 - 2 1 75 0.762 14.6% 97 0.173 5 2 3 3 3 3 3 27 73 71 73 77 81 85 31 75 73 76 80 84 88 75.6% 93 0.9% 3.516 12.2% 71.0% 4.7% 0.2% 71.479 13.6% 102 0. 0% 34 14 15 15 15 15 15 16.9% 2 3 2 2 2 2 2 2 2 .9% 9.5 6 4 5 2 1 1 1 92 0.0% 12.0% 10.0% (7) 45 45 22 22 22 22 22 1 1 383 396 405 419 438 458 479 - - - - - - - 13 3 1 17 0.7% 10.0% 10.1% 497 90 34 125 6.9% 166 0.9% 150 0.1% 475 18 0.9% 234 6.9% 202 6.1% 435 17 0.1% 22.9% 310 335 368 382 401 421 442 13.1% 411 15 0.9% 223 6.0% 10.9% 158 0.0% 12.7% 12.0% 10.1% 454 18 0.9% 205 6.7% 138 0.2% 400 12 2 1 16 0.0% 12.9% 143 0.9% 143 54 197 6.0% 12.9% 212 6.9% 6 7 4 1 5 2 2 2 111 0.1% 420 16 0. 4% 70 0.4% 560 560 60 0.4% 67 0.0% 35.254 1.5x 8.4% .7% 396 346 396 46 5.1% 13 0.1% 905 1.051 1.0% 40.2% 9 456 456 48 0.5x 1 19 20 days ### 13 days ### 14 days ### 15 days ### 15 days ### 16 days ### 1 7 29 37 0.523 1.2x 8.1% 11 0.0% 9 222 233 222 29 5.7% 314 306 314 39 5.931 1.0% 35.002 1.852 ### ### ### ### ### ### ### 6.4% 620 620 60 0.7% 442 360 2 235 253 281 306 328 346 360 9 5 15 0.025 83 2 3 1.2x 8.4% 74 0.3% 35.4% 1 7 24 32 0.3% 741 741 60 0.168 1.7% 279 281 279 36 5.2x 8.600 1.103 33.3% 802 204 27 6.4% 64 0.7% 4 247 253 247 32 5.680 1.1% 14 0.3% 4 499 499 60 0.4% 681 681 60 0.2x 8.1% 12 0.2% 61 0.1% 6 6 12 0.4% 34.764 1.2x 8.098 1.2x 2 5 7 ### 643.7% 353 328 353 42 5.3% 35.0% 449 16 0.1% 12 0.562 911 8 4 570 915 970 1. 0% 881 3.2% 9.1% 21 143 164 6.479 3.457 1.066 3.1% 16 0.162 1.9% 302 7.735 8.0% 20.471 1.621 1.702 7.9% 254 7.1% 18 0.365 4.4% 9.508 3.341 3.2% 9.063 5.1% 671 1.1% 15 0.182 3.769 6.1% - - 7 1 7 - 2 10 0.522 5.10 7 16 0.0% 20.2% 9.9% 263 7.227 5.735 8.118 3.9% 289 7.1% 18 0.349 3.707 7.1% 18 0.2% 12 13 0.4% 20.707 7.0% 20.587 3.361 1.862 231 3.997 2.4% 6 122 128 7.1% 17 0.522 5.9% 15 0.684 23.178 2.862 34 34 39 39 .1% 17 0.1% 18 0.319 80 138 751 1.4% 9.1% 3 11 0.1% 16 0.2% 9.0% 20.544 1.9% 275 7.2% 9.063 5.769 6.2% 200 247 447 145 145 145 145 145 145 145 145 145 145 145 145 757 1.417 1. 7 7 27 8 8 31 31 31 31 31 31 868 1.6x 10.247 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) .0% 10.3% 3 44 0.147 1.743 543 1.1% 10.3% 3 42 0.402 2.6x 10.6x 10.0% 10.3% 3 46 0.186 1.631 2.384 1.1x 10.375 ### ### ### ### ### ### ### 21.3% - - - - - - - - - - - - - - 113 531 - - - - - (4) (1.612 1.318 1.310 1.2% 3 22 0.364 1.3% 3 40 0.6x 10.453 1.223) 17 (18) (15) (7) (567) (1.513 125 14 16 21 22 5 9 37 58 49 67 4 4 1.763 2.0% 10.526 20.907 2.504 2.6x 10.4% 4.2% 3 38 0.0% 2.901 10 19 0.6x 99 242 1.255 1.0% 10. (85) (85) (706) (706) 511 511 102 102 127 127 132 132 138 138 ### (737) 253 (33) (33) (36) (38) . 50% 7.0% 0.50% 7.0% 0.70% 9.0% 0.6% 17.616 3.45 0.45 ### ### 13.50% 7.0% 0.45 0.0% 0.45 0.6% 17.45 0.0% Risk-free rate (10 yr PIB) Risk premium Beta Cost of equity 7.428 5.50% 0.45 0.0% 0.0% 0.(Al-Ghazi Tractors Ltd [AGTL] ) (WACC ) ((Rs mn) ) 2004 2005 2006 2007 2008 2009 2010 2011 2012 Interest bearing debt Equity Debt % Equity % 2.50% 7.0% 0.45 0.0% 0.0% 0.50% 7.6% 17.363 7.851 4.39% ### ### ### ### ### ### ### 7.6% 17.6% WACC ### ### 13.072 3.45 0.550 3.136 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% Cost of Debt After-tax cost of debt 0.420 6.8% 19.0% 0.0% 0.50% 7.0% 0.0% 0.8% 19.6% .134 8.0% 0.0% 0.8% 13.0% 17.50% 7.45 0.50% 7.6% 16.8% 13.6% 16.0% 0.0% 17. 50% 7.6% 17.2013 2014 9.0% 0.6% .230 10.0% 0.50% 0.45 17.18% 14.0% 14.6% 17.18% 7.421 0% 0% 100% 100% 0.0% 0.45 0.6% 17. 39 22.432 (89) ### WACC 17.719 16.643 EBITDA Operating tax Decrease/(increase) in working capital Capital expenditure . of shares (mn) Equity Value per share Dividend Fair Value Market price (Discount)/Premium to FV 3.1% .088 8.98 -24.133 8.0% 17.94 309.6% 2.0% 11.50 286.658 (579) 2.net Free Cash Flow 1.284 42.6% 6-Jan-12 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 DCF Valuation NPV of annual cash flows NPV of Terminal Value Enterprise Value Less: Net Debt Equity Value (Rs mn) No.(Al-Ghazi Tractors Ltd [AGTL] ) (VALUATION ) ((Rs mn) ) 2005 EBIT 1.719 48% 52% 8.522) 13.058 14.89 217.807 (3. 766 (1.006 3.8% 13.865 3.713 2.578 1.946 1.8% 19.099) (33) (60) 1.049 (1.6% 17.913 1.690 (646) (641) (563) (912) (181) (923) ### (737) (111) (21) (18) (46) 992 361 (770) 995 12.058 .003) (33) (60) 1.358 1.0% 17.233 2.930 1.730 2.052) (36) (60) 1.574 2.808 3.806 (971) 253 (60) 2.6% 2010 2011 2012 2013 2014 2.917 1.6% 17.6% 17.378 1.8% 13.027 2.686 2.661 1.201 (1.6% 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 2.104) (38) (60) 1.2006 2007 2008 2009 1.904 (1.155 2.998 16.900 3.774 2.541 1. 6% -10.4% 9.5% -88.4% .9% 1.7% 9.7% 1.7% 477 11.202 820 20.4% 21 30 68 58 778 19.0% 521 11.8% 4.8% 0.613 820 18.8% 12.8% 1Q10 Change QoQ 790 269 34.14 11.0% 20.5% 23 31 82 ) 58 790 17.2Q10 (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 ) 4.4% 1 777 301 38.10 10.022 3.2% 3.5% 0.1% 6.433 3.2% 12.