Kot Addu Power Company Limited (KAPCO)

Kot Addu Power Plant (the "Power Plant") was built by the Pakistan Water and Power Development Authority ("WAPDA") in five phases between 1985 and 1996 at its present location in Kot Addu, District Muzaffargarh, Punjab. In April 1996, Kot Addu Power Company Limited ("KAPCO") was incorporated as a public limited company under the Companies Ordinance, 1984 with the objective of acquiring the Power Plant from WAPDA. The principal activities of KAPCO include the ownership, operation and maintenance of

the Power Plant.

Shareholding Structure

On June 27, 1996, following international competitive bidding by the Privatisation Commission Government of Pakistan (the "Privatisation Commission"), the management of KAPCO was transferred to National Power (now International Power) of the United Kingdom, which acting through its subsidiary National Power (Kot Addu) Limited ("NPKAL"), bought shares representing a 26% stake in KAPCO. Later, NPKAL bought a further 10% shareholding in KAPCO increasing its total shareholding to 36%. The other majority shareholder in KAPCO is WAPDA with a present shareholding of 46%. Following the successful completion of the Offer for Sale by the Privatisation Commission (on behalf of WAPDA) in February 2005, 18% of KAPCO's shareholding is now held by the General Public. On April 18, 2005 KAPCO was formally listed on all three Stock Exchanges of Pakistan.

Vision Statement
To be a leading power generation company, driven to exceed our shareholders' expectations and meet our customers requirements.

Mission Statement
To be a responsible corporate citizen To maximise shareholders' return To provide reliable and economical power for our customer

To excel in all aspects relating to safety, quality and environment To create a work environment which fosters pride, job satisfaction and equal opportunity for career growth for the employees

Directors

Board of Directors

Syed Raghib Abbas Shah,esq.

Chairman, Board of Directors Syed Raghib Abbas Shah is Chairman of the Pakistan Water and Power Development Authority (WAPDA). He holds a Bachelor of Civil Engineering, Post Graduate Diploma in Civil Engineering and Bachelor of Law. He has 36 years of diverse experience in management, construction and O&M of Irrigation, Drainage & Reservoirs and Hydropower works alongwith Environmental safeguard of Projects. Syed Raghib Abbas Shah is the Member of Institute of Engineers Pakistan, Pakistan Engineering Council, PANCID and Permanent Finance Committee of International Commission on Irrigation & Drainage (ICID). He also represented Pakistan National Committee on Irrigation & Drainage in Moscow, China, Malaysia & USA. Over the years he has attended high profile training courses in Pakistan and abroad.

Mr. Aftab Mahmood Butt

Chief Executive Officer Mr. Aftab Mahmood Butt is the Chief Executive Officer of the Company since August 1, 2008. Prior joining to KAPCO, Mr. Butt was the General Manager Finance, Corporate Planning & Performance Monitoring in Pakistan Electric Power (Private) Limited and was the Nominee Director by WAPDA on the Companys Board of Directors. Mr. Butt has also held Directorship in Lahore Electric Supply Company Limited, Peshawar Electricity Supply Company Limited, Tribal Area Electricity Supply Company Limited and Quetta Electricity Supply Company Limited. Mr. Butt is the Fellow Member of the Institute of Chartered Accountants of Pakistan. Mr. Butt has more than 15 years experience in Corporate and Finance Sector and has held various senior management positions in Pakistan and abroad. Mr. Butt is also on the Board of Directors of Central Power Purchasing (Guarantee) Limited and the Lahore Stock Exchange (Guarantee) Limited. He is a certified Director from the Pakistan Institute of Corporate Governance.

Syed Nizam Ahmad Shah,esq.

Director Mr. Nizam Shah has over 50 years of high professional experience in the fields of Industrial Management and Finance. He has held key positions leading to the Chief Executive ships of the largest Private Sector Multinational Company operating in Pakistan and the largest development Financial Institution of the Government of Pakistan in the Public Sector. He is former Chairman and Chief Executive of National Development Finance Corporation Limited. He is also the former Chairman and Chief Executive of Pakistan Tobacco Company Limited. Mr. Nizam Shah holds directorship in Pakistan International Container Terminal Limited (P.I.C.T) and Pakistan International Bulk Cargo Terminal.

Mr. Malcolm Peter Clampin

Director Mr. Clampin has been associated with the Company since 2002. He served as Chief Executive of the Company from February, 2002 to September, 2006. Mr. Clampin is currently the Executive Managing Director of Arabian Power Company, UAE. Mr. Clampin is a mechanical engineer with 40 years experience in the power sector. During the last 20 years he has held various senior management and executive positions in the U.K. and overseas. He worked for the Central Electricity Generating Board, the U.Ks public utility, during the privatization of the electricity industry and subsequently has been actively involved in the transfer of power generation assets from the public to the private sector in Poland, Malaysia and Turkey.

Mr. Anwar Ul Haq

Director Mr. Anwar-ul-Haq has been on the Board of Directors of the Company since August, 2008. Mr. Haq is the Fellow of the Institute of Cost & Management Accountants of Pakistan. Mr. Haq is the General Manager Finance (Power), WAPDA. He has more than 30 years rich and varied managerial experience in the fields of Budgeting, financing, accounting, auditing, taxation and tariff modulation of WAPDA/Ex WAPDA corporate entities. Mr. Haq also holds the Directorship in Lakhra Coal Development Company Limited, First Credit and Investment Bank Limited, WAPDA First Sukuk Company Limited and WAPDA Second Sukuk Company Limited.

Mr.Muhammad Zia Ur Rehman Director

Mr. Zia-ur-Rehman has been on the Companys Board of Directors since November, 2011. Mr. Zia-ur-Rehman is an Electrical Engineer and has a Post graduated diploma in Electric Power Distribution System from Norwegian Institute of Technology (NTH), University of Trondheim, Norway. Mr. Zia-ur-Rehman has 35 years diversified experience in different management position in WAPDA. Mr. Zia-urRehman has attended high profile training courses in Pakistan and abroad. He is a certified Director from the Pakistan Institute of Corporate Governance.

Mr. MIchel Gantois Director

Mr. Gantois is the Executive Vice President & CFO of IPR- GDF Suez Asia. He has Master in Business kAdministration from Leuven, Belgium. He has 24 years Multilingual MBA senior financial executive with experience in energy and investment banking and track record in general management, strategy, corporate finance, project finance, structured finance, treasury, M&A, securitization, valuation, due diligence, risk management, accounting, audit, budgeting, reporting, tax, internal control. Mr. Gantois is the Founder and Chairman of Utility Working Group of European Union Chamber of Commerce in China. He is the Member of American Chamber of Commerce in China.

Directors Office Addresses

Name of Director Syed Raghib Abbas Shah,esq. Mr. Aftab Mahmood Butt Syed Nizam Ahmad Shah,esq. Mr. Malcolm P. Clampin Mr. Anwar-ul-Haq Mr. Muhammad Zia-Ur-Rehman Mr. Michel Jean Gilbert . Note: The above persons have been elected as Directors of the Company at the 7th Extraordinary General Meeting held on September 25, 2012 Office Address 701 WAPDA House, Lahore 5 B/3, Gulberg III, Lahore 4 Mary Road, Bath Island, Karachi Arabian Power Company Sas Al Nakhl Island Abu Dhabi, U.A.E. 713 WAPDA House, Lahore 722 WAPDA House, Lahore 737/135 The Medison Unit 29D2 Sukhumvit Soi 41, Sukhumvit Road Klongton Sub-district, Klongtoey District Bangkok 10110, Thailand

Power plant technology

KAPCO is Pakistan's largest Independent Power Producer (IPP) with a name plate capacity of 1600 MW. The Power Plant comprises of 10 multi fuel fired gas turbines and 5 steam turbines installed in 5 phases between 1985 and 1996. These turbines are divided into 3 energy Blocks with each Block having a combination of gas and steam turbines. The Power Plant's combined cycle technology enables KAPCO to use the waste heat from the gas turbine exhaust to produce steam in the Heat Recovery Steam Generator, which in turn is used to run the steam turbines thereby resulting in fuel cost efficiency and minimum wastage. The Power Plant is a multi-fuel gasturbine power plant with the capability of using 3 different fuels to generate electricity, namely: Natural Gas, Low Sulphur Furnace Oil and High Speed Diesel to generate electricity. The Power Plant is also the only major plant in Pakistan with the ability to self start in case of a country wide blackout.

Investor guide line:

All queries relating to KAPCO may be addressed to: Mr. A. Anthony Rath Company Secretary & Legal Counsel 5-B/3, Gulberg-III Lahore 54660, Pakistan Tel: +92 (0)42 35772912 - 20 UAN: +92 (0)42 1111-KAPCO Fax: +92 (0)42 35772907 Email: anthony.rath@kapco.com.pk SECP :http://www.secp.gov.pk/complaintForm1.asp

Company Information
Board of Directors Syed Raghib Abbas Shah, esq. Mr. Aftab Mahmood Butt Syed Nizam Ahmad Shah, esq. Mr.Malcolm Peter Clampin Mr.Anwar Ul Haq Mr. Muhammad Zia Ur Rehman Mr. Michel Jean Gilbert Gantois Chairman Chief Executive Officer Director Director Director Director Director

Audit Committee
Syed Nizam Ahmad Shah,esq. Mr. Malcolm P. Clampin Mr. Anwar-ul-Haq Mr. Muhammad Zia ur Rehman Mr. Michel Jean Gilbert Gantois Chairman Member Member Member Member

HR Committee
Mr. Malcolm P. Clampin Mr. Anwar-ul-Haq Mr. Aftab Mahmood Butt Chairman Member Member

Company Secretary
Mr. A. Anthony Rath

Auditors
A. F. Ferguson & Co., Chartered Accountants, Lahore, Pakistan

Legal Advisors
Kabraji & Talibuddin Advocates and Legal Counsellors, Karachi, Pakistan

Bankers
Citibank, N.A Habib Bank Limited Allied Bank Limited Bank Alfalah Limited MCB Bank Limited Standard Chartered Bank (Pakistan) Limited National Bank of Pakistan Faysal Bank Limited Bank Islami Pakistan Limited Samba Bank Limited Meezan Bank Limited

Corporate Office
5-B/3, Gulberg-III Lahore 54660

Pakistan Tel: +92 (0)42 3577 2912 - 20 UAN: +92 (0)42 1111-KAPCO Fax: +92 (0)42 3577 2907, 3577 2922

Power Plant
Kot Addu Power Complex, Kot Addu District Muzaffargarh (P.C. 34060), Pakistan UAN: +92 (0)66 1111-KAPCO Tel. +92 (0)66 230 1041, +92 (0)66 1111-KAPCO Fax:+92 (0)66 230 1025

Registered Office
House No. 4, Street No. 54-A F-7/4, Islamabad, Pakistan

Shares Registrar
THK Associates (Private) Limited Ground Floor, State Life Building No. 3 Dr. Ziauddin Ahmed Road Karachi 75530, Pakistan Tel: +92 (0)21 111 000 322 (UAN)

Associated Companies
Pakistan Water and Power Development Authority("WAPDA") www.wapda.gov.pk National Power (Kot Addu) Limited www.iprlc-gdfsuez.com

Registration/NTN
Registration Number: 0035513 NTN: 0708010-7

Symbol: KAPCO
KSE: www.kse.com.pk LSE: www.lse.com.pk ISE: www.ise.com.pk

Rating of Company
JCR-VIS Credit Rating Company Limited Affiliate of Japan Credit Rating Agency ,Ltd As of February 21,2011 Rating Type: Entity Medium to Long Term:AA+ Short Term:A-1+

Associate Membership
1- Overseas Chamber of Commerce and Industry 2- Islamabad Chamber of Commerce and Industry 3- Pakistan Institue of Corporate Governance 4- Employers Federation of Pakistan

ISO Certification

ISO-9001:2000, Quality Management System ISO-14001:2004, Environment Management System OHSAS-18001:1999, Occupational Health and Safety Assesment Series

Material information
KAPCO is managed through a suite of agreements signed between it and its customer (WAPDA), Government of Pakistan, and fuel suppliers. These include: Power Purchase Agreement ("PPA") The PPA is between WAPDA and KAPCO. Inter alia, the PPA determines the tariff structure and principles of operating the Power Plant. The PPA includes an implicit return built into the tariff provided. KAPCO maintains its available capacity at the contractual level identified in the PPA. KAPCO has robust and effective engineering, financial, procurement and HR strategies in place to ensure that contractual capacity levels are maintained. Over the last two years, dependable capacity levels have been significantly above the contracted levels. Gas Supply Agreement ("GSA") The GSA is between Sui Northern Gas Pipelines Limited ("SNGPL") and KAPCO. Inter alia, the GSA guarantees a certain quantity of gas deliveries during off peak months from SNGPL. Oil Supply Agreement ("OSA") The OSA is between KAPCO and Pakistan State Oil Company Limited ("PSO"). PSO is the largest oil marketing company in Pakistan and is engaged in the nationwide storage, distribution and marketing of various petroleum, oil and lubricant products. Inter alia, the OSA covers the supply to KAPCO of fuel, diesel, oil, greases, lubricants and additives for the requirement of the Power Plant.

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Integrated Management System (IMS)

KAPCO is the first company in Pakistan to be awarded three simultaneously accreditations under the title of the Integrated Management System. For its achievements in areas of quality, environment and safety, KAPCO was awarded in July 2004 certificates of ISO 19001 - 2000 Quality Management System; ISO 14001 - 1996, Environment Management; and OHSAS 18001 1999 Occupational Health & Safety Management.

Quality Management System

KAPCO Quality Management System ensures that processes of the organisation are defined in accordance with recognised international standards. This system serves as a tool for providing confidence to management (Internal Quality Assurance) and to customers & shareholders (External Quality Assurance).

Environment Management System

Environment Management System provides a systematic approach to comply with National Environmental Quality Standards (NEQs). Plans have been established for monitoring and continuous improvement in our environmental performance.

Occupational Health and Safety Management System

Being a Safety conscious company, KAPCO has implemented an Occupational Health and Safety Management (OH&S) System. This system has

enabled the Organisation to control OH&S risks and improve health and safety performance. The System has been planned on the basis of OH&S hazards & risk assessment and relevant legal requirements of the Country. For operation of the System, responsibilities, awareness & training, documentation operational control, departmental objectives and emergency preparedness/ response have been implemented at all levels in the company. Performance of the System is monitored, measured and recorded and actions are planned accordingly. Consistent adherence with the System and continual improvement is ensured by periodic management reviews and internal/external audits.

Hr
KAPCO with its broad vision of Human Resource Management provides life-long career development opportunities for qualified, competent and hard-working professionals. Currently the employee strength is approximately 588. All of the

employees are well-trained and committed to their jobs. KAPCO endeavours to create a conducive work environment which fosters pride, job satisfaction and equal opportunity for career growth of the employees.

KAPCO owns and maintains housing facilities for its employees and their families. The residential colony is spread over 170 acres and comprises over 900 houses, a ten bed hospital, staff and officers' recreation facilities, two shopping centres, a bachelors hostel, a guest house, secondary schools for boys and girls and three mosques. The employees and their dependants are provided with full medical cover. Well-being of the employees families along with ample recreational activities is essential for employees in order to deliver optimum capabilities with complete peace of mind. Fully understanding this importance, KAPCO promotes sports and recreation activities amongst employees and their families. KAPCO is an equal opportunity employer. KAPCO maintains a strict induction standard and uses a merit base when hiring new employees to ensure the concept of the "Right Person for the Right Job".

Human Resource Development

KAPCO greatly values its employees and therefore Human Resource Development ("HRD") is a high priority in KAPCO's corporate objectives. HRD programmes are developed, from time to time, with a view not only to enhance essential business and professional skills but also to focus on the personal development of employees. A long-term view has been established to address personal development and succession planning through effective training programmes.

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Community
KAPCO as a responsible Corporate Citizen not only generates electricity, but is also dedicated to improve the well-being of the community it operates in. Since its inception in June 1996, KAPCO has initiated a comprehensive Social Action Programme with special emphasis on basic health and education facilities in order to improve the quality of life of the local people. KAPCO's primary objectives are as follows: Health Care Provision of health care equipment, infrastructure facilities to upgrade the standard of local government hospitals, primary and preventative medical care including free consultation, medicines, vaccinations, eye operations, surgeries and complete treatment of diseases like

Tuberculosis for deserving patients. Enhance awareness among the local community in preventative health care. Education Provision of infrastructure facilities such as construction of class rooms, toilets, furniture, electric water coolers, scholarships, books, uniforms and bags to deserving students. Gold Medals to the top achievers of Kot Addu in SSC and HSSC examinations. Infrastructure Improvement of infrastructure facilities in surrounding areas such as provision of street lights, construction of public waiting rooms at bus stands, electric water coolers, fans, benches, and improved sewerage systems. Training and Development Provide technical training opportunities to local students through

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Apprenticeship Training Schemes and internships. Sponsorships Provision of financial assistance and prizes to local sports events

Key Statistics for KAPCO

Current P/E Ratio (ttm) Estimated P/E(06/2013) Relative P/E vs. KSE100 Earnings Per Share (ttm) Est. EPS (06/2013) Est. PEG Ratio Market Cap (M PKR) Shares Outstanding (M) 30 Day Average Volume Price/Book (mrq) Price/Sale (ttm) Dividend Indicated Gross Yield Cash Dividend (PKR) Last Dividend 5 Year Dividend Growth Next Earnings Announcement
mrq = Most Recent Quarter; ttm = Trailing Twelve Months

7.0145 0.8559 6.9000 42,604.26 880.25 435,400 1.8015 0.4239 14.26% 3.1500 10/12/2012 2.83% 02/15/2013

Income Statement for KAPCO

Revenue Net Income (M/PKR)

Profit Margin (%) Jun 2011Jun 2012 050,000100,000150,000200,000 5.00 %6.00 %7.00 %8.00 %9.00 % Revenue (M): 100,504.3040 Net Income (M): 6,071.2870 Profit Margin (%): 6.0408

Company Profile & Key Executives for KAPCO

Kot Addu Power Company Limited owns, operates, and maintains a power station and generating units.
Aftab Mahmood ButtChief Executive Officer
More Company Profile & Key Executives for KAPCO

A Anthony RathSecretary

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