Arif Habib : AHCL - Annual Report for the Year Ended 30th June 2023

Together

we are Stronger

Annual Report 2023

Arif Habib Group

Since initiation, the Arif Habib Group has grown by imagining possibilities and developing a blueprint to convert them into reality. It has made a difference to lives across Pakistan by being a responsible investor supporting the country's growth story and boosting relevant sectors of national importance.

With an entrepreneurial essence and passion to undertake business projects that fuel the growth of society and economy, the Arif Habib Group has built and continues to develop businesses in the areas of financial services, fertilisers, cement, steel, renewable energy and real estate development.

After having found a strong foothold in financial services, the Group, over time, has diversified

into emerging business areas, with meaningful contributions to Pakistan's economy. The Group draws strength from its own human capital, as well as its ability to forge strong partnerships with other business houses and benefit from collective strength. To continuously strive for quality and excellence are an integral part of the Group's business model and these are not merely corporate slogans but the formula for achieving success. An important part of our strategy is to continue raising the bar.

With a strong belief, consistent and unwavering faith in Pakistan's immense growth potential, the Arif Habib Group is committed to serve the country, community and all its stakeholders reach maximum potential through innovation, transforming challenges into opportunities.

Arif Habib Corporation Limited

Arif Habib Corporation Limited (AHCL) is the flagship company of the Arif Habib Group. The company took over the sole proprietorship business set up by Mr. Arif Habib in 1990 and was incorporated in 1994 as a public limited company with a paid-up capital of PKR 40 million.

In 2001, AHCL achieved a significant milestone by becoming a publicly listed company, with an initial public offering (IPO) of one million shares aimed at raising PKR 80 million to fuel its growth trajectory. Since its IPO, the company has demonstrated a strong commitment to its shareholders, distributing a total of PKR 16 billion as dividends (including specie dividends). Moreover, AHCL conducted two buybacks of its share having face value of PKR.10; first in

2005-06 amounting to PKR 720 million at prices

of PKR 360 per share, and second in 2019-20 amounting to PKR 1.225 billion at prices of PKR 27 per share.

As of June 30, 2023, AHCL has strong equity base of PKR 20 billion built through retained earnings. This remarkable journey has translated into a compounded annualized return of 23% for the initial investors who participated in the IPO back in 2001.

The Arif Habib brand is widely recognised as synonymous with unwavering commitment to best practices and a paramount dedication to prioritising its stakeholders. These principles have become ingrained in the company's identity, setting a standard that stakeholders have grown to anticipate from an organisation relentlessly pursuing excellence within its industry.

Together we are Stronger

Arif Habib

Group's Journey

2015	2017
Launch of Dolmen City REIT	Incorporation of Black Gold Power
	Limited for 660MW Coal Power Project
Acquisition of Fatimafert Ltd (formerly	Achievement of Financial Close for
DH Fertilizers)
expansion of Aisha Steel and Power
	Cement (USD 300m)

2012	2011
Establishment of Arif Habib	Acquisition of Sachal Energy
Commodities	(to set up Wind Power)
	Merger of Arif Habib
	Investments and MCB asset
	management

1994	2001
Establishment of Arif Habib Corporation	Establishment of Asset Management
(Previous name Arif Habib Securities)	Company, Arif Habib Investments

2019

Achieved COD of Aisha Steel's expansion

2009

Establishment of REIT

Management Company

Divestment of Arif Habib Bank

(now Summit Bank) and

Thatta Cement

2004

Establishment of Arif Habib Limited by separating brokerage business from Arif Habib Corporation

Annual Report 2023

2020

Achieved COD of Power Cement's expansion

2008

Acquired stake in ICPL (Dolmen City)

2004

Acquired Rupali Bank, renamed Arif Habib Rupali Bank and then Arif Habib Bank; finally sold off

Acquisition of Sukh Chayn Gardens and Thatta Cement

2021

Launch of Silk Islamic Development REIT, Pakistan's first developmental REIT

2007

Became a joint venture partner in Aisha Steel Mills Limited

2005

Acquisition of Pakarab Fertilizers

2023

Divestment of MCBAH Savings and Investments Limited

2022

First Developmental REIT

Listed on PSX, Global

Residence REIT (GRR)

2006

Acquisition of Javedan Cement

Invested in Power Cement

2005

Invested in Fatima Fertilizer, which was established as a green field project