1. Initial Public Offering of Mughal Iron & Steel Industries Limited 27.35 million Ordinary Shares via Book Building at a price band of PKR20.0/- to PKR34.0/- per share Lead Manager, Arranger & Book Runner Date of Book Building: 16/02/2015 From 9:00 a.m. to 5:00 p.m. February 2015

2. GLOSSARY ‒AKDSAKD Securities Limited ‒AODArgon Oxygen Decarboriser ‒ASLAisha Steel Mill Limited ‒BVPSBook Value Per Share ‒CAGRCompounded Annual Growth Rate ‒CISCommon Wealth of Independent States ‒CSAPCrescent Steel & Allied Products Limited ‒EBITDA Earnings Before Interest Taxes Depreciation and Amortization ‒EPSEarnings Per Share ‒FEDFederal Excise Duty ‒HSPLHuffaz Seamless Pipe Industries Limited ‒INILInternational Industries Limited ‒ISLInternational Steel Limited ‒MISILMughal Iron & Steel Industries Limited ‒MMBTUMillion British Thermal Unit ‒MWMega Watt ‒NPATNet Profit After Tax ‒ROEReturn to Equity ‒ROAReturn on Assets ‒STPLSiddiqsons Tin Plate Limited 2

3. S.No.ContentsPage Number 1Executive Summary5 2Company Overview7 3Sector Overview15 4Key Investment Highlights20 5Financial Highlights24 TABLE OF CONTENT 3

4. Executive Summary 4

5. EXECUTIVE SUMMARY TRANSACTION  Mughal Iron & Steel Industries Limited (“Company” or “MISIL”) is issuing 27,350,000 Ordinary Shares representing 25.00% of the total post IPO paid-up capital of the Company having a face value of PKR10.00/- each: – Book Building Portion - 20,512,500 Ordinary Shares (75% of the Total Issue) at a price band of PKR20.0/- to PKR34.0/- per share – General Public Portion - 6,837,500 Ordinary Shares (25% of the Total Issue) at a Strike Price determined via the Book Building  The principal purpose of the Issue for the Company is to expand its manufacturing facilities by acquiring a new 7.5MW Induction Furnace and to balance, modernize & replace its existing Re-Rolling mills facilities.  AKD Securities Ltd (“AKDS”) has been mandated by the management of the Company to act as Lead Manager, Arranger and Book Runner for the IPO of Mughal Iron & Steel Industries Limited.  Book Building will be held on “16th February 2015 from 09:00a.m to 5:00p.m”  This presentation intends to solicit interest from Institutions and High Net Worth Individuals (“HNWI”) to participate in the Book Building process. 5

6. Company Overview 6

7.  The forefathers of the current Sponsor of the Company established Mughal Trader in 1950s. MISIL has since evolved from traders to manufacturer of Iron and Steel products in the last 6 decades.  Over the years the Sponsors of MISIL have vertically integrated the Company by installation of various Re-Rolling Mills, Furnaces and other manufacturing units. In 2010, MISIL was incorporated as a public unlisted company.  The Company is one of the largest manufacturers of structural steel products in Pakistan with an annual Iron and Steel melting capacity of 384,000 tons. The Induction furnaces feed into Re-Rolling Mills capable of processing up to 675,000 tons of molten Iron and Steel.  The Company’s production facility is located in industrial area of Lahore. It currently operates with 5 Induction Furnaces, 6 Re-Rolling Mills, 1 Arc Furnace, Coal Gasification Plant and a 9.3 MW Power Plant.  The Company’s product line primarily includes hot and cold rolled long products. The Company also produces flat steel products, stainless steel and semi-finished products. COMPANY OVERVIEW HISTORY 7

8.  MISIL offers a wide range of Iron and Steel products which include semi-finished products, long products, flat products, and ferroalloys. The Company has expertise in both hot rolling and cold rolling procedures. Billets Beams Bars Ferro Alloys COMPANY OVERVIEW PRODUCT LINE 8

9.  The following are the details of MISIL production facilities: COMPANY OVERVIEW PLANT SPECIFICATION 9

10. 1950s 1994 ̶Establishment of Mughal Traders ̶Installation of a Medium Section Mill 1998 1999 2003 2007 ̶Establishment of “Mughal Trust” Eye Hospital ̶Installation of Argon Oxygen Decaboriser (“AOD”) & Ladle Refining Furnace ̶Installation of Cold Rolling Mills, Spectrometer & Other equipment ̶Installation of Ferro Plant 2008 ̶Installation of Two Small Section Mill ̶Winner of Brand of the Year Award 2010 ̶Installation of Dedicated Bar Re-Rolling Mill ̶Incorporation of Mughal Iron & Steel Industries Limited 2011 ̶Installation of Coal Gasification Plant ̶License of Microsoft AX-Dynamics 2013 ̶Installation of new Tandem Section Mill ̶Winner of Best Export Performance Award 2014 ̶Installation of three new Induction Furnaces 2005 ̶Installation of 9.3MW Power Plant COMPANY OVERVIEW KEY MILESTONES 10

11. 11 COMPANY OVERVIEW AWARDS & ACCREDITATIONS 11 201120132014

12. Mr. Mirza Javaid Iqbal (Chairman/Director) Having joined his family business in 1976, Mr. Javaid Iqbal rose to become a pioneer of the steel industry of Pakistan. He has not only developed new pathways to achieve energy efficiency and economies of scale, but has made remarkable contributions towards the technological advancement and effective documentation of the national steel industry. Mr. Khurram Javaid (Chief Executive Officer/Director) He holds an MBA from the Coventry University, UK and a BSc. from the Lahore School of Economics in Pakistan. He has made substantial contributions to the Company’s sales and production network within the country – ensuring that each is at par with the international standards of the steel industry. He is the man behind incorporating effective HR planning, policymaking and training Mr. Muhammad Zafar Iqbal (Chief Financial Officer) He is working as CFO since incorporation of the Company. He is a Fellow Member of the Institute of Chartered Accountants of Pakistan. He has vast experience of dealing in accounts, finance, and taxation and company law related matters. With over 16 years of experience in leadership positions, he plays an active role in the financial/strategic planning of the Company. COMPANY OVERVIEW KEY MANAGEMENT PROFILE 12

13. COMPANY OVERVIEW DIRECTORS PROFILE Dr. Syed Salman Ali Shah (Director) Syed Salman Ali Shah holds a Ph.D. in Finance from the Kelley School of Business Administration, Indiana University, USA. He has served as the Advisor to the Prime Minister of Pakistan on various fields: Finance, Revenue, Economic Affairs and Statistics. Mr. Shah has worked as the Former Chairman of the Privatization Commission and is currently the Chairman of the Lahore Stock Exchange. Mr. Jamshed Iqbal (Director) Mr. Jamshed Iqbal has played a pivotal role in developing MISIL’s distributional network across Pakistan. He has a vast experience and in-depth knowledge of the steel sector, with a sound expertise in managing local and export sales. Mr. Iqbal has strived hard to ensure that all kinds of geographical requirements are met by the Company’s distributional network – a feat that has resulted in expanded growth of MISIL. Mr. Muhammad Mubeen bin Tariq Mughal (Director) Mr. Muhammad Mubeen Bin Tariq Mughal has a BSc. in Economics and Finance from the Lahore School of Economics, Pakistan. Having an experience of over five years in the steel sector, he is presently looking after the Accounts, Finance and Audit functions of the Company. 13

14. COMPANY OVERVIEW DIRECTORS PROFILE Mr. Fazeel bin Tariq (Director) Mr. Fazeel Bin Tariq holds a Bachelor’s Degree in Business Administration from the Lahore School of Economics, Pakistan and a Postgraduate degree in Professional Accounting from the Swinburne University of Technology, Australia. He has recently joined as the Board as Director for MISIL. Mr. Muhammad Mateen Jamshed (Director) Mr. Mateen holds a Bachelor’s Degree from Lahore School of Economics and has recently joined the Board as Non–Executive Director. He is also a member of the Audit Committee and Human Resource & Remuneration Committee. 14

15. Sector Overview 15

16.  World crude steel production has increased from 851mt (million metric ton) in 2001 to 1,649mt for the year 2013  Potential growth was higher during the period but it was halted due to economic recession during the period  Asia produce 65% of the global crude steel making it the most significant region in the world  Outlook for 2014 and onward is strong as economy conditions are expected to be more favorable in coming years  Developing economies in particular are expected to be lucrative for steel manufactures  Biggest threat to the steel market remains overproduction as current global capacity exceeds the demand Source: Steel Year Book 2014 SECTOR OVERVIEW GLOBAL MARKET 16

17.  Driven by strong economic growth number and high level of consumption, the region is a net Importer of scrap metal.  The high demand of scrap metal is fulfilled through imports from the European Union and North America. (Source: Steel Year Book 2013) Regional TradeTradeDynamics  China produces almost half of world’s total crude steel production and consumes most of its production.  Japan, South Korea and India are three other major players in global steel export market that are present in this region, making it a highly competitive region. SECTOR OVERVIEW REGIONAL MARKET 17

18.  The steel industry in Pakistan is dominated by small and medium-scale re-rolling mills, engaged in re- rolling, forging and melting activities.  Current consumption for steel is 3.5mn tonnes (Steel Year Book 2014). Production lags behind total consumption hence excess demand is met through import of semi-finished and finished good.  Pakistan is still amongst the lowest per capita consumer of crude steel at 19.1 kg in comparison to regional average of 262.5kg and world average of 238.2kg.  Demand is expected to remain high, primarily due the current Government’s focus on the infrastructural projects.  Local steel manufacturer compete against steel products imported primarily from China, however recent change in Chinese export regulation have increased the cost of imported steel, boosting local industry sales. SECTOR OVERVIEW DOMESTIC MARKET Steel Production by Process ('000 tonnes) 201120122013 Oxygen-blown Converters 750 850 Electric Furnace 100 120 Total 850 970 Imports of Semi-finished and Finished Steel Products ('000 tonnes) 201120122013 Imports of Ingots and Semis 106 41 59 Import of Long Products 145 160 169 Import of Flat Products 1,282 1,663 1,690 Imports of Tubular Products 56 88 141 Total 1,589 1,952 2,059 Import of Raw Material ('000 tonnes)201120122013 Import of Pig Iron 9 8 9 Import of Iron Ore 116 - - Import of Scrap 955 922 875 1,080 930 884 18

19. Source: Karachi Stock Exchange Limited (15 th of Jan 2015)  The following companies are listed on the Karachi Stock Exchange Limited classified under Industrial Metal and Mining sector: SECTOR OVERVIEW COMPETITORS PKR in Million 19

20. Key Investment Highlights 20

21.  Historical Performance – The Company has enjoyed a strong growth in the revenue stream over the years. In last four years, the Company’s has achieved strong revenue CAGR of 25%.  Strong Profile and Management Prowess – The main Sponsors of MISIL have been in the industry for over 50 years. During this period the Company has brought together a team of technically skilled and well versed individuals all of whom have significant experience in the industry.  Export Oriented Company – The Company first entered the export arena back in the year 2006. The export for the year June 2014 amounted to PKR 2.25 billion which constitutes 38.41% of the overall sales. KEY INVESTMENT HIGHLIGHTS 21

22.  Strong Outsourcing Capabilities – MISIL through its Sponsors has established relationships in the industry for over five decades and as a result possesses strong outsourcing capabilities. This allows for significant scaling of its operations through a network of dependable partners.  International Standard Infrastructure – In order to ensure and maintain quality standard Mughal Labs (“ML”) was established in 2003. ML is equipped with state of the art Chemical and Mechanical Analytics machines as well as an Optical Emission Spectrometer of the M8 Series.  Corporate Social Responsibility – As a socially responsible Company, MISIL is involved in several philanthropic activities which reflect positively on its image amongst clients and the society. The Company has built state of the art Eye Hospital in 1998 which provides majority of the services free of charge to the General Public. The hospital annually caters approximately 100,000 outdoor patients and conducts 10,000 major surgeries, 15,000 minor surgeries and 5,000 laser surgeries. KEY INVESTMENT HIGHLIGHTS 22

23. KEY INVESTMENT HIGHLIGHTS  Strong Controls and Corporate Governance – The Company is in the final stage of implementation of Microsoft AX, which will provide robust information system to monitor the supply chain. The Company ensures implementation of the best corporate governance practices in order to promote transparency and follows all applicable International Financial Reporting Standards (“IFRS”).  Captive Power and Gas Supply – In the wake of extensive power and gas outages the Company has managed to mitigate this risk by developing indigenous power and gas supply. MISIL has installed 9.3MW gas-fired power plant. MISIL also invested PKR 40 million in the installation of a coal gasification industrial plant that prepares clean syngas which can be used as a substitute to natural gas in heating process.  Attractive Lower Limit – The Price Band with Lower Limit of PKR 20 per share represents a value proposition based on existing trading multiples of the market. Currently the KSE 100 Index trades at a P/E of 9.70 and P/B of 2.04 respectively. The Company trailing Pre-IPO P/E and P/B multiple of 4.20 times and 1.24 times and Post IPO P/E and P/B of 5.60 times and 1.65 times. 23

24. Financial Highlights 24

25. FINANCIAL HIGHLIGHTS BALANCE SHEET 25

26. FINANCIAL HIGHLIGHTS PROFIT AND LOSS 26

27. FINANCIAL HIGHLIGHTS KEY RATIOS 27

28. 28 CONTACT DETAILS Arsalan Nazir Analyst Investment Banking Email: arsalan.nazir@akdsecurities.net Direct: +92-21-3536-0533 PABX: +92-21-111-253-111 Ext. 665 Fax: +92-21-3537-4291 +92-21-3586-7992 Syed Khurram Shahid SVP/Head Investment Banking Email: khurram.shahid@akdsecurities.net Direct: +92-21-3537-4301 PABX: +92-21-111-253-111 Ext. 636 Fax: +92-21-3537-4291 +92-21-3586-7992 28