Masood's Presentation (Rs) R2

8/14/2019 Masood's Presentation (Rs) R2

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Pakistan - Cotton TextilesPakistan - Cotton Textiles

4th largest Cotton producer: 9.5 % of the worlds total production4th largest Cotton producer: 9.5 % of the worlds total production

Largest cotton yarn supplier in the world with 38% shareLargest cotton yarn supplier in the world with 38% share

Pakistani yarns in 10s to 30s counts are worlds best due to staplePakistani yarns in 10s to 30s counts are worlds best due to staple

lengthlength

Spinning: Spindles increased from 8.33m to12.82m during 1999-2005Spinning: Spindles increased from 8.33m to12.82m during 1999-2005

$5.0 billion investments in textile machinery in 1999-2005$5.0 billion investments in textile machinery in 1999-2005

750 knitting & 450 medium to large size sewing units with over750 knitting & 450 medium to large size sewing units with over

300,000 stitching machines300,000 stitching machines


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150m population with low SAM cost150m population with low SAM cost

Generates over 62 % of countrys total ExportsGenerates over 62 % of countrys total Exports

Constitutes 46 % of the Manufacturing IndustryConstitutes 46 % of the Manufacturing Industry

Employs 38 % of countrys working populationEmploys 38 % of countrys working population

Contributes 8.5% to the total GDPContributes 8.5% to the total GDP

Pakistan - Cotton TextilesPakistan - Cotton Textiles


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SWITZERLAND

BELGIUM

GERMANY

AUSTRIA

FRANCE

UK

ITALY

JAPAN

CANADA

IRELAND

AUSTRALIA

USA

SPAIN

GREECE

MALTAISRAEL

TAIWAN

S. KOREA

PORTUGAL

HONGKONG

CZECHREP.

S. AFRICA

POLAND

SLOWAKIA

ESTONIA

TURKEY

ARGENTINA

VENEZUELA

BRAZIL

MOROCCO

MEXICO

OMAN

TUNISIACOLOMBIA

PERU

MAURITIUS

BULGARIA

THAILAND

MALAYSIA

EGYPT

CHINACOASTAL

KENYA

INDIA

INDONESIA

CHINAINLAND

SRI LANKA

PAKISTAN

VIETNAM

BANGLADESH

0,00 10,00 20,00 30,00 40,00

US$PEROPERATORHOUR

LABORCOSTINTHETEXTILEINDUSTRYWINTER2004/05

Major Driver is LABOUR COST

&

Pakistan is the 3rd lowest wage country

Labor Cost in Textile IndustryLabor Cost in Textile Industry


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Masood IntroductionMasood Introduction

The company was incorporated on the 3rd ofThe company was incorporated on the 3rd of

October, 1984 as a Public company and was listedOctober, 1984 as a Public company and was listed

on Karachi and Lahore Stock Exchanges during theon Karachi and Lahore Stock Exchanges during the

financial year 1988 and now listed on all Stockfinancial year 1988 and now listed on all Stock

Exchanges in Pakistan. The company is engaged inExchanges in Pakistan. The company is engaged in

the following manufacturing activities;the following manufacturing activities;


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Vertically Integrated Operations

Fabric Knitting

Fabric Processing

Apparel Manufacturing

Yarn Manufacturing


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Textile PlantTextile Plant Sewing PlantSewing Plant

Masood Textile Mills LtdMasood Textile Mills Ltd


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Spinning Division of Masood Textilesis capable of producing 22,000 lbs.of carded and 8,000 lbs. of combedRing spun yarn every day (based on20/s count). The division, equippedwith most modern machinery from

Japan, England and Switzerland,produces a vast range of yarn countsfrom 10/s to 40/s. To ensureconsistent quality, spinninglaboratory has been equipped withlatest and most modern testingequipment. 40% of yarn production is

exported to Hong Kong, Japan,Korea, Malaysia and Thailand. Therest of capacity is used for in-houseproduction of fabric, convertedsubsequently into apparel.

SpinningSpinning


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Knitting Department machinescapable of making Jersey, Pique,Fleece, Interlock and Rib in additionto the mini jacquard designs of singleknit jersey. The gauge ranges from 9to 28 for single knit, 18 to 24 forInterlock and 15 for Rib machines.

Most of the machines are equippedwith Lycra attachment. Masood hasadded striper machines forproducing feed, auto and engineeredstripe jersey, PQ fabrics.Moreover, it has flat bed machinesfor non-roll collar and armband

making. 100% production isinspected and only A grade fabric istransferred to the subsequentoperations. Masood has a dailyknitting capacity of 60,000 kg, with atotal of 290 Machines.

KnittingKnitting


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The Processing Department has an installed capacity of dyeing 400 Tons per week. Equippedwith These dyeing machines from Germany, it is capable of dyeing both cotton and Poly-cottonblended fabrics. The machine size selection provides flexibility in dye lot size ranging from 100Kg's to 1,000 Kgs. Processing is equipped with Santex finishing lines from Switzerland includinghydro extractors, dryers and compactors for tubular as well as open width fabrics. Moreoverstate of the art sue ding equipment with Nylon Brushing Technology makes Masood capable ofproducing emasculate and delicate knit fabrics. German Technology Monfort stenter and Corinoslitting machines are the latest addition to processing department.

Dyeing/FinishingDyeing/Finishing


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With over 2,500 stitching machines,manned with the most skilled andexpert operators, Masood is capableof producing about 400,000 dozensper month versatile garments rangingfrom basic to high fashion, mens,

womens and kids with maximumflexibility in size and colorassortments. All the garments are cuton fully automated Gerber cutters.The Quality control and QualityAssurance departments are in placeto make sure the companys objectiveof zero defect. Computerized Barcoding and Back Track systemsprovide Masood 100% predictabilityand tracking performance.

GarmentsGarments


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YEAR RUPEES

2002 90.000

2003 477.000

2004 601.000

2005

(9 Months)

298.000

2006 741.373

2007

(6 Months)

310.342

Fixed AssetsRs in Millions

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007

InvestmentsInvestments


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Total AssetsTotal Assets

YEARYEAR RUPEESRUPEES

2002 1,833.191

2003 3,587.810

2004 4,370.972

2005 5,859.090

2006 6,519.292

2007 7,351.811

Rs in Millions

0

1000

2000

3000

4000

5000

6000

7000

8000

2002 2003 2004 2005 2006 2007


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YEAR RUPEES

2002 1,569.000

2003 2,950.000

2004 3,212.000

2005(9 Months)

3,086.000

4,115.000

2006 4,782.000

2007(9 Months)

4,173.000

5,564.000

ExportsRs in Millions

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006 2007


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YEAR $ M

2002 26.15

2003 49.17

2004 53.53

2005(9 Months)

51.43

68.58

2006 79.70

2007(9 Months)

69.55

94.78

Exports$ in Millions

0

20

40

60

80

100

2002 2003 2004 2005 2006 2007


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2126

35

4953.53

68.58

79.7

94.78

132

158

196

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Growth TargetGrowth Target

TurnoverUS $ in Millions`

9-11

Projections


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YEAR RUPEES

2002 405.011

2003 592.392

2004 626.322

2005 762.720

2006 889.9862007 1,009.200

ProfitRs in Millions

0

200

400

600

800

1,000

1,200

2002 2003 2004 2005 2006 2007

Nine months data for year 2005 and 2007 annualizedNine months data for year 2005 and 2007 annualized

Gross ProfitGross Profit


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EmployeesIn Number

35203950

8057

8775

10180

12225

2001 2002 2003 2004 2005 2006

Employment GeneratedEmployment Generated


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Key CustomersKey Customers
http://www.nautica.com/


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Quality & Performance AwardsQuality & Performance Awards

Our performance and quality standards are evident from the achievement offollowing awards:

Outstanding Partnership Award for the Year 2001-2002 - JCPenney

Quality Recognition Award for the Year 2001 Russell Corp

Best Supplier of the Region for the Year 2001-2002 - JCPenney

Operational Excellence Award for the Year 2002 - JCPenney

Best Quality Award for the Year 2002 - JCPenney

Operational Excellence Award for the Year 2004 - JCPenney

Best Supplier Award for the Year 2005 JCPenney

Divisional Quality Award for the Year 2005 - JCPenneyBest Start Up Supplier for Year 2005 - Fruit of the Loom

Accuracy in Communication, Coordination and Execution Award for Year 2006 - Fruit of the Loom

Best Compliance Award for the Year 2006 - Fruit of the Loom

Supplier of the Year 2006 - JCPenney


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JC PenneysJC Penneys

"Operational Excellence Award for 2002"."Operational Excellence Award for 2002".

GLOBAL EXCELLENCE AWARDSGLOBAL EXCELLENCE AWARDS


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JC Penneys "The best supplier of the region award 2001-2002".JC Penneys "The best supplier of the region award 2001-2002".


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JCPenney s "Best Quality Award for 2002"JCPenney s "Best Quality Award for 2002"


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Fruit of the Loom s "Best Start up Supplier Award for 2005"Fruit of the Loom s "Best Start up Supplier Award for 2005"


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JC Penneys "Operational Excellence Award for 2004".JC Penneys "Operational Excellence Award for 2004".


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Best Compliance Supplier - 2006Best Compliance Supplier - 2006


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Accuracy of Information Communication and Execution - 2006Accuracy of Information Communication and Execution - 2006


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MTM "Purchasing Partnership Award JC PenneyMTM "Purchasing Partnership Award JC Penney


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YEAR Break-upValue

Market Value

2002 10.94 8.50

2003 21.54 22.05

2004 24.20 22.90

2005 27.22 37.75

2006 30.55 24.65

2007 31.07 24.40

Rs Per Share

0

5

10

15

20

25

30

35

40

2002 2003 2004 2005 2006 2007

Market Price Break-up Value

Share PricesShare Prices


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Financial ResultsFinancial Results

Following table shows excellent growth in turnover, improving gross profit,Following table shows excellent growth in turnover, improving gross profit,

operating profit and net profit of the company. This achievement has been madeoperating profit and net profit of the company. This achievement has been made

due to managements strategy to move towards value addition, injection of fundsdue to managements strategy to move towards value addition, injection of funds

by the sponsors for BMR, marketing efforts to bring top class companies intoby the sponsors for BMR, marketing efforts to bring top class companies into

Pakistan.Pakistan.

Description 2002 2003 2004 2005 (9Months)

2006 2007

(9 Months)

Sales 1,642.469 3,008.333 3.354.442 3,163.252 4,899.190 4,172.272

Goss Profit 405.011 592.392 626.322 572.058 889.986 756.907

Administrative/sellingexpenses

212.639 352.779 355.677 281.952 383.500 285.339

Operating Profit 194.192 241.882 273.121 291.923 509.264 473.838

Financial Charges 87.680 125.238 161.634 161.763 335.266 309.631

Net profit before taxation 106.512 116.644 111.487 130.160 173.998 164.207

(Rupees in Million)

Masood's Presentation (Rs) R2

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