1. Nishat Mills Limited Corporate Briefing Lahore Stock Exchange March 24, 2011

2. AL - QURAN Surah: An-Najm (The Star) Presenters: Badar ul Hassan Chief Financial Officer Imran Javed Assistant GM Finance That man can have nothing but what he strives for; 39 That (the fruit of) his striving will soon come in sight. 40 3. AGENDA Introduction Our Mission and Vision Corporations Management Business Segments Investments Portfolio Growth Plans Financial Performance Highlights Share Price Analysis Corporations Assets Latest Financial Results Future Outlook Questions & Answers 4. Introduction Nishat Mills Limited (Nishat), a flagship company of Nishat Group, ranks amongst the largest and most successful textile exporters of the country. It commenced business as a partnership firm in 1951 and was incorporated as a private limited company in 1959. Later it was listed on stock exchange in 1961. Initially Nishat started with weaving business and over the years it has become one of the premier composite textile mills in the country with the largest production facilities in spinning, weaving, processing, stitching and power generation. It has more than 15,000 employees. Overall Nishat has 28 manufacturing units each specializing in a specific product range located at Faisalabad, Sheikhupura, Ferozewatwan and Lahore. Excellent research and development functions are developed with focus on dyeing, finishing and garments businesses. Hence, major focus is on value addition which represents around 50% of total turnover. 5. Introduction (continued) Nishat has a very broad base of customers for its products both in and outside Pakistan. The company has long working relationship with top brands of the world such as J.K.N. International, Levis, Next, Pincroft Dyeing, Ocean Garments, Arnold Kock, Gap, Carreman and Sinha Fashion. Major portion of Companys earnings is export based. Nishat has achieved significant geographical diversification in its export sales mix over the years. 2010 2009 Rupees in thousands Europe 8,759,128 7,051,422 Asia, Africa & Australia 11,803,566 9,723,826 USA & Canada 3,660,713 1,938,695 24,223,407 18,713,943 Geographical Spread Export sales are expected to be more than Rs 31 billion for the financial year 2010-2011. 6. Introduction (continued) Product Mix 28% 27%4% 18% 13% 8% 2% Yarn Processed fabric Waste Sales Grey Cloth Made - ups Garments Miscellaneous Nishat has an excellent product mix of sales. 7. Introduction (continued) In recognition of its outstanding performance Nishat has been awarded FPCCI President of Pakistan Trophy for number of years. Nishat has established its own power generation facilities at all plant locations that fulfill the internal demand as well as generate surplus for supply to WAPDA. The combined capacity of power generation is 85 MWH. The strength of the company also includes top quality and highly competent professional resources to manage the affairs. Nishat is a Green Company and has got certificates of ISO-9001, IKO-TEX 100, SA-8000 and Citypad. Over the years Nishat has established Nishat USA, Nishat Linen Trading LLC UAE and Nishat Power Limited as its subsidiary companies to further strengthen its textile business in new markets and diversifying into growing electricity sector. 8. Introduction (continued) Nishat has got excellent credit ratings of AA- for long term and A1+ for short term from PACRA which reflects its ability to maintain its position in the key markets despite tough economic times. Over the years it has not only maintained but improved its long term credit rating. 9. Introduction (continued) Pattern of shareholding at 30 June 2010 Category Number of holders Shares held Percentage Individuals 13,424 187,605,624 53.36 Investment Companies 13 23,019 0.01 Insurance Companies 21 15,332,357 4.36 Joint Stock Companies 220 50,391,708 14.33 Financial Institutions 47 35,481,497 10.09 Modaraba Companies 65 22,576,954 6.42 Foreign Investors 29 38,372,832 10.91 Miscellaneous 30 1,815,857 0.52 Total 13,849 351,599,857 100.00 10. Our Mission & Vision Mission To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable growth and prosperity of the Company. Vision To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan. Also to transform the Company into a modern and dynamic power generating company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan. 11. Corporations Management Board of Directors Mian Umer Mansha Chairman Mian Hassan Mansha Director Mr. Khalid Qadeer Qureshi Director Mr. Muhammad Azam Director Mr. Syed Zahid Hussain Director Mr. Maqsood Ahmed Director Ms. Nabiha Shahnawaz Cheema Director 12. Corporations Management (continued) Audit Committee Mr. Khalid Qadeer Qureshi Chairman Mr. Muhammad Azam Member Ms. Nabiha Shahnawaz Cheema Member Executive Management Mian Umer Mansha Chief Executive Officer Mr. Badar ul Hassan Chief Financial Officer Mr. Khalid Mahmood Chohan Company Secretary 13. Business Segments Nishat has the following five reportable business segments. Each segment has production facilities located at various locations. Spinning: Production of different qualities of yarn (more than 100 different counts) using natural and artificial fibers with production capacity of 64.713 million kgs of yarn per annum. There is average daily consumption of 138,000 kgs of local cotton and 20,000 kgs of imported cotton. We have an average PC yarn mix of 80% cotton and 20% polyster. Out of total cotton purchases around 90% purchase is from local market and 10% is imported. Weaving: Production of different qualities of greige fabric using yarn and having production capacity of 307.971 million square meters of fabric per annum. Out of total yarn requirement approximately 70% of yarn is purchased from external parties and 30% is received from Companys own spinning units. 14. Business Segments (continued) Processing and Home Textiles (including Nishat Linen retail shops): Processing of greige fabric for production of printed and dyed fabric and its further use in manufacturing variety of home textile articles. It has processing capacity of 84 million meters of fabric per annum. Approximately 55% of total fabric demand is met from Companys own weaving units and 45% is purchased from external parties. Garments: Manufacturing of garments using processed fabric with capacity of producing 600,000 garments per month. Approximately 25% of total demand of fabric is met from Companys own facilities and 75% is purchased from external suppliers. Power Generation: Generation and distribution of power using gas, furnace oil, diesel and steam. We have power generation capacity of 85 MW whereas our average consumption is approximately 40 MW. In power plants are installed engines from Mak, Jenbacher, Caterpillar, Wartsila, Dai Hatsu and Cummins. 15. Business Segments (continued) Segment Plant Location Machinery Spinning Faisalabad Ferozewatwan 167,624 spindles 32,376 spindles Weaving Bhikki Lahore Air Jet Looms 602 Sulzer Looms 40 Processing & Home Textile (including Nishat linen) Lahore Shops all over Pakistan Faisalabad (3), Bhikki (1) Lahore (10), Sialkot (1), Gujrat (1), Gujranwala (1), Sargodha (1), Multan (1), Islamabad (2), Pindi (1), Mirpurkhas (1), Karachi (3) 5 dyeing machines 3 printing machines 938 sewing machines Garments Lahore 1627 sewing machines Power Faisalabad Ferozewatwan Lahore Bhikki 6 power plants at each production facility using Wartsila , Caterpiller , Cummins , Diahatsu , Jenbacher & Mak 16. Business Segments (continued) Revenue 30% 19% 42% 8% 1% Spinning Weaving Processing & home textile Garments Power 17. Investment Portfolio Relationship Holding No of shares 31-Dec-10 31-Dec-10 Status Percentage held Market/ Fair value Cost Rupees '000' Rupees '000' Long term investments Nishat Power Limited Subsidiary 51.01 180,632,955 1,806,330 1,806,330 DG Khan Cement Company Limited Associate 31.40 114,645,168 3,458,845 2,959,565 Nishat Paper Products Company Limited Associate 25.00 11,634,199 116,342 116,342 Nishat USA Incorporation Subsidiary 100.00 200 3,218 2,939 LAL PIR Power Limited Associate 32.00 110,498,540 2,686,220 1,648,444 Pak Gen Power Limited Associate 28.80 107,159,499 2,036,030 1,486,472 Subsidiaries and associates 10,106,985 8,020,092 Adamnjee Insurance Company Limited Related Co. 0.03 36,337 3,179 2,775 Habib Bank Limited Investee 0.00 145 17 11 MCB Bank Limited Related Co. 7.03 53,411,266 12,206,611 8,122,094 Total long term investments 22,316,792 16,144,972 Short term investments Pak Gen Power Limited Associate 3.20 11,906,611 226,225 165,163 Nishat Chunian Limited Related Co. 14.20 22,513,321 511,503 242,750 Pakistan Strategic Allocation Fund Investee 0.17 500,000 4,195 1,715 Security General Insurance Company Limited Related Co. 15.02 10,226,244 1,174,893 11,187 Total shore term investments 1,916,816 420,815 Total investments 24,233,608 16,565,787 18. Growth Plans A new wholly owned subsidiary with the name of Nishat Linen Trading LLC has been incorporated in Dubai, United Arab Emirates and it is expected to open its first retail outlet in Dubai Festival City Mall by May 2011. We are expecting to open six retail outlets in UAE with a total investment of US $ 2.75 million. Installation of a new Combined Heat and Power Plant having a production capacity of 6.25 MW of electricity and 65 tonne of steam through use of 30% coal and 70% agricultural and municipal wastes, that is expected to be operational later in financial year 2011-2012. The Company has earned revenue of Rs 21.345 billion during the half year ended 31 December 2010 and is expected to increase its revenue for the financial year 2010-2011 over Rs 40 billion with an approximate increase of 30% from the previous financial year. 19. Financial Performance Highlights Over the last ten financial years Nishat has been able to show excellent financial performance and has maximized the value for its shareholders through payment of dividends and increasing net worth of company. The stakeholders trust in the company has allowed the company to maintain growth in its revenue, gross profit, net profit and total assets. The trend analysis of financial performance in last ten financial years are mentioned in the next slides. Nishats strength lies in its focus on organic growth through development of its productions facilities, expansion of business to new markets, search of new customers and maintaining excellent investment portfolio. 20. Financial Performance Highlights (continued) Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Revenue Rs. (million) 11,662 11,948 13,209 14,876 11,375 16,660 17,180 19,590 23,870 31,536 Gross Profit Rs. (million) 2,057 2,028 1,888 1,934 2,135 2,958 2,845 2,812 4,352 5,980 Net Profit Rs. (million) 315 202 411 751 1,867 1,633 1,211 5,858 1,268 2,915 Gross Profit Ratio % 17.6% 17.0% 14.3% 13.0% 18.8% 17.8% 16.6% 14.4% 18.2% 19.0% Net Profit Ratio % 2.7% 1.9% 3.1% 5.1% 16.4% 9.8% 7.5% 29.9% 5.3% 9.2% Dividend % 15% 0% 15% 20% 25% 15% 25% 25% 20% 25% Dividend per share Rs. 1.5 - 1.5 2 2.5 1.5 2.5 2.5 2 2.5 Earning per share Rs. 2.83 1.65 3.35 5.17 12.86 10.22 7.58 36.86 6.23 10.5 Interest Cover Times 1.37 1.34 1.86 3.13 5.99 3.33 2.66 7.44 2.08 3.92 Current Ratio 0.97 : 1 1.04 : 1 1.03 : 1 1.22 : 1 1.24 :1 1.38 : 1 1.74 : 1 0.73 : 1 0.86 : 1 1.11 : 1 Gearing Ratio 63.89 63.59 57.15 53.54 38.02 29.64 21.24 29.62 34.34 25.53 Shareholders' equity Rs. (million) 4,730 4,267 6,118 7,851 12,806 20,594 30,164 26,492 19,331 31,376 Return on equity % 6.66% 4.72% 6.71% 9.57% 14.58% 7.93% 4.02% 22.11% 6.56% 9.29% Market Price Rs. 11 14 26 43 75 105 130 86 38 43 Break-up Value Rs. 42.48 38.33 49.95 64.1 88.16 141.78 188.78 165.8 79.72 89.24 Total Assets Rs. (million) 14,222 12,796 15,455 19,582 21,918 30,661 39,587 40,277 31,513 46,182 At a Glance 21. Financial Performance Highlights (continued) Net revenue 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Years Rupees(millions) 11,662 11,948 13,209 14,876 11,375 16,660 17,180 19,590 23,870 31,536 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 270% growth in net revenue in last ten years. 22. Financial Performance Highlights (continued) 0 1,000 2,000 3,000 4,000 5,000 6,000 Rupees(millions) Years Gross Profit & Net Profit Gross Profit 2,057 2,028 1,888 1,934 2,135 2,958 2,845 2,812 4,352 5,980 Net Profit 315 202 411 751 1,867 1,633 1,211 5,858 1,268 2,915 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 925% growth from net profit in 2001 to net profit in 2010. 23. Financial Performance Highlights (continued) Gross Profit & Net Profit Ratios to Revenue 0% 5% 10% 15% 20% 25% 30% 35% Years Percentage Gross Profit 17.64% 16.97% 14.29% 13.00% 18.77% 17.76% 16.56% 14.35% 18.23% 18.96% Net Profit 2.70% 1.90% 3.10% 5.10% 16.42% 9.80% 7.50% 29.90% 5.30% 9.20% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 24. Financial Performance Highlights (continued) Dividend Payout and Dividend Yield 0% 10% 20% 30% 40% 50% 60% Years Percentage Dividend Yield 10.71% 0.00% 5.77% 4.65% 3.33% 1.43% 1.92% 2.91% 5.29% 4.64% Dividend Payout 53.00% 0.00% 44.78% 38.68% 19.44% 14.68% 32.98% 6.78% 32.10% 23.81% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 25. Financial Performance Highlights (continued) Earnings per share and Dividend per share 0 5 10 15 20 25 30 35 40 Years Rupees EPS 2.83 1.65 3.35 5.17 12.86 10.22 7.58 36.86 6.23 10.5 Dividend 1.5 0 1.5 2 2.5 1.5 2.5 2.5 2 2.5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 26. Financial Performance Highlights (continued) Interest Cover Ratio 0 1 2 3 4 5 6 7 8 Years Times Interest Cover 1.37 1.34 1.86 3.13 5.99 3.33 2.66 7.44 2.08 3.92 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Able to generate sufficient profits to meet the interest expenses. Strong cash flows, lower rate SBP export refinance facility and dividends on investments has resulted in improved financial coverage. 27. Financial Performance Highlights (continued) 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Years Current Ratio Current Ratio 0.97 1.04 1.03 1.22 1.24 1.38 1.74 0.73 0.86 1.11 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 28. Financial Performance Highlights (continued) 0 10 20 30 40 50 60 70 Years Gearing Ratio Gearing 63.89 63.59 57.15 53.54 38.02 29.64 21.17 30.62 34.34 25.53 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Steady decline in gearing ratio and improved equity of company. 29. Financial Performance Highlights (continued) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Rupees(000) Years Shareholders' Equity SHE 4,718 4,255 6,118 9,502 12,806 20,594 30,164 26,492 19,331 31,376 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 665% growth in shareholders equity in last ten years. 30. Financial Performance Highlights (continued) Return on Equity 0% 5% 10% 15% 20% 25% Years Percentage ROE 6.66% 4.72% 6.71% 9.57% 14.58% 7.93% 4.02% 22.11% 6.56% 9.29% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 31. Share Price Analysis 0.00 50.00 100.00 150.00 200.00 Rupees Years Market Price 10.95 14.00 26.00 43.00 75.00 105.00 130.00 86.00 38.00 43.00 Break-up Value 42.48 38.33 49.95 64.10 88.16 141.78 188.78 165.80 79.72 89.24 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Break up value per share has always been higher than market value per share in last ten years. Market price at 21 March 2011 was Rs 62.92 per share. 32. Corporations Assets 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Years Rupees(millions) Total Assets 14,222 12,796 15,455 19,582 21,918 30,661 39,587 40,277 31,513 46,182 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 325% growth in total assets in last ten years. 33. Latest Financial Results for half year ended 31 Dec 2010 (continued) Half Year ended Half Year ended 31-Dec-10 31-Dec-09 Amount Percentage Rupees'000 Rupees'000 Rupees'000 % Sales 21,344,751 14,152,293 7,192,458 50.82 Cost of sales (18,062,291) (11,662,819) (6,399,472) (54.87) Gross profit 3,282,460 2,489,474 792,986 31.85 Distribution cost (924,541) (743,786) (180,755) (24.30) Administrative expenses (316,113) (260,766) (55,347) (21.22) Other operating expenses (189,039) (127,685) (61,354) (48.05) Other operating income 1,207,103 335,582 871,521 259.70 Profit from operations 3,059,870 1,692,819 1,367,051 80.76 Finance cost (705,501) (546,828) (158,673) (29.02) Profit before taxation 2,354,369 1,145,991 1,208,378 105.44 Provision for taxation (296,000) (135,500) (160,500) (118.45) Profit after taxation 2,058,369 1,010,491 1,047,878 103.70 Earnings per share 5.85 3.82 2.03 53.14 Gross profit margin (% of sales) 15.38% 17.59% -2.21% (12.58) Profit after taxation (% of sales) 9.64% 7.14% 2.50% 35.01 Variance Income Statement for half year 34. Latest Financial Results for half year ended 31 Dec 2010 (continued) Cost of sales 31 Dec Percentage 2010 % Raw materials consumed 6,366,511 32.04 Cloth and yarn used 7,952,142 40.02 Processing charges 117,666 0.59 Salaries, wages and other benefits 1,153,945 5.81 Stores, spare parts and loose tools 1,676,782 8.44 Packing materials 365,190 1.84 Repair and maintenance 125,976 0.63 Fuel and power 1,440,301 7.25 Insurance 15,177 0.08 Other factory overheads 121,682 0.61 Depreciation 533,127 2.68 19,868,499 100 Work-in-process: Opening stock 2,921,946 Closing stock (4,102,049) (1,180,103) Cost of goods manufactured 18,688,396 Finished goods: Opening stock 1,545,610 Closing stock (2,171,715) (626,105) 18,062,291 35. Latest Financial Results for half year ended 31 Dec 2010 (continued) Distribution Expenses 31-Dec Percentage 2010 % Salaries, wages and other benefits 70,071 7.58 Outward freight and distribution 450,724 48.75 Commission to selling agents 286,514 30.99 Rent, rates and taxes 11,476 1.24 Insurance 7,883 0.85 Travelling and conveyance 28,507 3.08 Vehicles running 7,284 0.79 Entertainment 1,408 0.15 Advertisement 19,808 2.14 Postage, telephone and telegrams 34,977 3.78 Electricity and suigas 1,468 0.16 Printing and stationery 835 0.09 Repair and maintenance 1,903 0.21 Fee and subscription 30 0.00 Depreciation 1,654 0.18 924,542 100.00 36. Latest Financial Results for half year ended 31 Dec 2010 (continued) Administration Expenses 31-Dec Percentage 2010 % Salaries,wages and other benefits 204,579 64.72 Rent, rates and taxes 4,014 1.27 Legal and professional 4,282 1.35 Insurance 2,169 0.69 Travelling and conveyance 12,612 3.99 Vehicles' running 10,638 3.37 Entertainment 6,868 2.17 Auditors' remuneration: 400 0.13 Advertisement 37 0.01 Postage, telephone and telegrams 5,766 1.82 Electricity and sui gas 9,849 3.12 Printing and stationery 7,358 2.33 Repair and maintenance 11,635 3.68 Fee and subscription 1,876 0.59 Miscellaneous 3,591 1.14 Depreciation 30,438 9.63 316,112 100.00 37. Latest Financial Results for half year ended 31 Dec 2010 (continued) Other Operating Expenses 31-Dec Percentage 2010 % Workers' profit participation fund 121,603 64.33 Workers' welfare fund 48,048 25.42 Provision for doubtful debts 11,207 5.93 Depreciation on investment properties 2,881 1.52 Donation 5,300 2.80 189,039 100.00 Other Operating Expenses 31-Dec Percentage 2010 % Dividend income 536,290 44.43 Profit on deposit with banks 38,382 3.18 Net Exchange gain including loss on forward contracts 402,177 33.32 Interest income from Nishat Power Limited 58,056 4.81 Gain on sale of investment 94,726 7.85 Gain on sale operating fixed assets 10,225 0.85 Sale of scrap, empties, and inventories 50,907 4.22 Rental income 16,332 1.35 Miscellaneous 8 0 1,207,103 100 38. Latest Financial Results for half year ended 31 Dec 2010 (continued) Borrowings and Finance cost Loan facility Loan Amount 31 Dec 2010 Rupees Mark up for half year Rupees Long term loans 3,859,554,588 230,665,644 Short term loans Overdraft 1,162,448,764 20,274,722 Pre- shipment 2,647,100,000 37,398,256 Export Refinance Part I 2,038,451,000 73,750,440 Export Refinance Part II 6,554,635,000 260,558,551 Total 12,402,634,764 391,981,969 Gross Total 16,262,189,352 622,647,613 39. Latest Financial Results for half year ended 31 Dec 2010 (continued) Balance sheet at half year end 31-Dec-10 30-Jun-10 Rupees '000 % of total Rupees '000 % of total Assets Non current assets - Property, plant and equipment 12,196,151 22 11,841,667 26 - Long term investments 22,316,792 41 21,959,543 48 - Other non current assets 993,739 2 648,176 1 35,506,682 34,449,386 Current assets - Stores, spares and loose tools 927,690 2 688,832 1 - Stock in trade 11,663,474 21 6,060,441 13 - Short term investments 1,916,816 4 1,554,543 3 -Other current assets 4,332,285 8 3,429,112 7 18,840,265 11,732,928 Total assets 54,346,947 100 46,182,314 100 Liabilities Non current liabilities - Long term financing 2,619,874 5 2,980,694 6 - Deferred tax 582,469 1 1,256,892 3 3,202,343 4,237,586 Current liabilities - Short term and current portion of long term borrowings 13,642,315 25 7,778,079 17 - Other current liabilities 3,512,886 6 2,790,336 6 17,155,201 10,568,415 Share capital and reserves 33,989,403 63 31,376,313 68 Total liabilties and equity 54,346,947 100 46,182,314 100 40. Latest Financial Results for half year ended 31 Dec 2010 (continued) 41. Latest Financial Results for half year ended 31 Dec 2010 (continued) 42. Future Outlook Maintaining better margins through price revisions for exports Benefit from the bulk buying of cotton and fabric Focus on exploring new markets and expanding customer base Further expansion of export of Garments and Home Textiles Commercial operations of Nishat Linen Trading LLC Lower cost alternative of power supply Investing in new profitable ventures related to textile business as well as other sectors 43. Questions & Answers Thank You