PACE PAKISTAN LIMITED

Apr 16 - 22, 2007

Pace Pakistan Limited was incorporated on 21st November 1992 as a public limited company. The company is a part of First Capital/Worldcall Group. The group is divided into four different market segments mainly: Telecom Division, Financial Division, Media Division and Property Division. The prominent companies which the group holds under each division are: Worldcall Telecom, First Capital Equities Limited, Total Media Limited (Business Plus). Pace started its operation in consumer retailing and mall management which was based on the concept of one stop shop. Currently the main business of the company consists of development, sale and management of properties/real estate including but not limited to shopping malls, apartments, office blocks, housing schemes and hotels etc. The company buys lands out-right or enters into joint venture agreement with the owners of the land for development. The company then designs and constructs the projects on the acquired land. Thereafter it engages into sale of property under construction, while maintaining a portion of the developed property for open area, car parks, food courts and super markets etc.

COMPLETED, ONGOING AND UPCOMING PROJECTS OF THE COMPANY

PROJECT

CITY

TYPE

EXPECTED COMPLETION

Pace Gulberg

Lahore

Shopping Mall

-

Pace Model Town

Lahore

Shopping Mall

-

Pace M.M. Alam Road

Lahore

Shopping Mall

-

Pace Gujranwala

Gujranwala

Shopping Mall

2007

Pace Towers

Lahore

Appt/Offices

2008

Pace Model Town Extension

Lahore

Shopping Mall

2008

Pace Rawalpindi

Rawalpindi

Shopping Mall

2008

Pace Gujrat Ltd

Gujranwala

Shopping Mall

2007

Pace Super Mall Ltd

Lahore

Business Centre

2008

Pace Woodlands Ltd

Lahore

Town Houses

2008

Pace Barka Properties Ltd

Lahore

5-Star Hotel

2009

INITIAL PUBLIC OFFERING

In the pre-IPO placement, the company issued 44.4m shares (29.9% stake) at Rs14 per share (same as the public offer) to Millennium Global High Yield Fund. Millennium is a privately owned international investment management company based out of UK, established in 1994. Currently Millennium Global has funds of US$7.2b under its management with investments in 25 countries across Asia, Europe, and America. PACE Pakistan struck KSE and LSE through country's first real estate IPO on Jan17-18, 2007. The KSE approved the provisional listing and quotation of shares of Pace Pakistan. The provisional listing took place between Jan 08 2007 to Feb 23 2007. The offer comprised of 39.3m shares to general public at Rs14 per share (inclusive Rs4 per share premium).

FINANCIAL PERFORMANCE FIVE YEARS AT A GLANCE

Company continued to perform well over the years and gradually increased its profitability. The company declared profit after tax of Rs326.9m (EPS: Rs1.74) for 2006 as compared to Rs206.1m (EPS: Rs1.10) in 2005, reflecting a growth of 58.7%. The growth in the profitability of the company was complimented by rising sales and declining cost along with a considerable jump in the other income portion of the company. Further details can be seen in the table below:

RS. IN THOUSANADS

2002

2003

2004

2005

2006

Sales

9,824

83

5,370

375,039

37,537

Cost of Goods Sold

8,555

266

4,664

317,154

419,352

Trading Profit

1,269

(183)

706

57,885

118,185

License Fee

9,206

22,190

31,584

29,567

26,186

Operating Expense

7,803

18,833

25,457

23,871

27,580

Gross Profit

2,672

3,174

6,833

63,581

116,791

Admn and Sell Exp

5,243

9,795

15,984

23,419

38,141

Operating Profit

(2,571)

(6,621)

(9,151)

40,162

78,650

Other Income

21,782

38,962

9,738

24,840

47,384

Change in Fair Value of Inv. Prop

16,672

6,776

89,052

208,600

225,322

Financial and Other Charges

15,665

5,399

7,280

2,165

6,333

Profit Before Tax

20,218

33,718

82,359

271,437

345,023

Taxation

151

(101,093)

10,426

65,382

18,055

Profit After Tax

20,067

134,811

71,933

206,055

326,968

FUTURE OUTLOOK

Pace Pakistan is ideally placed to expand with its solid experience, resources and investment in ultra high quality projects. Having a strong base in Lahore, the company projects itself to expand nationwide, beginning from Lahore to those cities in Punjab where infrastructure development and culture has enough to absorb this investment. Competition which the company faces is moderate due to location and design of the projects undertaken by the company. Moreover, Pace is one of the leading company in real estate business having versatile experience base to undertake wide variety of projects country wide. In initial phase the company intends to focus on areas of Punjab such as Lahore, Gujrat, Gujranwala and Rawalpindi. In later phase the company intends to focus on outward expansion within Punjab such as Faisalabad, Multan, Sialkot and other metropolitan cities like Karachi, Peshawar and Islamabad etc.