Listen to the Sound of the Day Yesterday, Today & Tomorrow

1. A Company with a Heart and Soul Listen to the Sound of the DayYesterday, Today & Tomorrow By Naveed Ahmed Khawaja Date: 19th November 2009

2. Our Products

4. A Company with a Heart and Soul The History of EBM • English Biscuit Manufacturers (Pvt) Ltd was established as a joint venture company in 1965 with the name of PEEK FREANS PAKISTAN LIMITED • In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited (ABIL), while the venture was renamed to English Biscuit Manufacturers (Pvt) Ltd, which stands to date • EBM started manufacturing and marketing of world famous Peek Freans range in 1967 in order to provide Pakistani consumers with good quality, nutritious and hygienically packed biscuits

5. A Company with a Heart and Soul The Industry Issues • The Early Years - 70’s • Economic Challenges • Rupee de-valuation, Labor Unions unrest, Surging imported RM prices, Market too small (branded biscuits) • EBM making losses everyday • Tethering on the brink of bankruptcy • Incurring losses of Rs 5000/- per day • Traditional & Old style Biscuit industry • BP – Montgomery – Sunshine etc. • Branded market small & stagnant • No concept of “Strong Branding”, “Positioning” • No Product innovation/ differentiation etc.

6. A Company with a Heart and Soul Key Challenges • Leadership Challenge • Shake & revive the industry • Bring Change through Competition • Achieve Growth in branded biscuit industry • Strategy & Branding • Create need & niche • Biscuits considered as a Luxury food item & not a necessity • Introduce Branding & Positioning • Bring Product & Packaging innovation • Grow Vol. share to survive • Invest in Technology & R&D

7. A Company with a Heart and Soul The Strategy of 70’s • Taking Competitive Edge • Biscuits marketed as “food in between meals” • Biscuits marketed under PF & EB umbrellas • Through strong & modern “Branding” • The Pied Piper concept launched • The Sound of Yesterday, Today & Tomorrow • The Legend Leads • Gained Instant Popularity, Awareness, Relevance, Trial and Loyalty • A larger than life icon… • But the Total Market did not grow! • Competition did not compete

8. A Company with a Heart and Soul The Strategy of 70’s contd... • Grow the total Market • Created Competition from within • Launched another brand range “Happy” • Created competition in branded biscuit ind. • Overall Market grew by +30% • Market growth attracted a mushrooming of entrants • Union, Montgomery, AB Foods, etc

9. A Company with a Heart and Soul The Strategy of 80’s • The mid-Years - Era of Market Growth • Grew market leadership through launch of new innovative products • Introduced Premium products i.e. Farm House Cookies (87-88) • Introduced the EB Royal Range (88-89) • Entry of Danone through CBL i.e. LU brand • Competitive environment fuelled further market growth

10. A Company with a Heart and Soul The Strategy of 90’s • Intense competition & market growth • EBM market share slipped • Standing Still…. Was not an option • A change was imminent • With increasing input costs, increasing competition & market share slip strategic business decisions had to be taken • EBM adopted a “high volume, low margin strategy”

11. A Company with a Heart and Soul The Strategy of 90’s contd… • Price Increase Freeze in mid-90’s • Objective • Create barriers of entry for new entrants • Make biscuits more affordable for consumers to aid conversion from loose biscuits to packaged • Allow economies of scale&capacity utilizations • Outcome • Market grew volumetrically • Small players crashed out as their scale of operations could not sustain the price freeze • EBM focused on increasing internal efficiencies • New plant expansions • Balancing, Modernization & Replacement (BMR)

12. A Company with a Heart and Soul The Strategy of 2000 & Onwards • Current Times – Era of EBM Growth • Continue Price Freeze till 2007 • Continue High Volume, Low Margin Strategy • Focus on Increasing Internal economies and efficiencies • Cost reductions without impacting product quality • Self-power generation • Reduction of product wastages • Increase in plant efficiencies (new plants) • Focus on long-term contractual agreements for raw materials procurement • Alternate sourcing of packaging material (imported vs. local) • No compromise on the product quality via any cutting of corners • Ensuring that the consumer is not cheated • Trust and confidence is maintained

13. A Company with a Heart and Soul The Strategy of 2000 & Onwards contd… • Market Penetration Strategies • Product Launches & Re-launches • EBM’s true Marketing Success Stories • Sooper Re-launch - leading the turnaround of business & growth of overall biscuit market Sooper 1.aviSooper 2.mpg • Capitalizing on Market Leadership Position • RIO Double Treat – product innovation (2 creams) • Marvell – Product Innovation in Shape • Party Re-launch • Seeking new consumers through new consumption occasions • Sandwiches Re-launch – Over 40 years old brand • Tapping up-country markets • Peanut Pik & Pista Re-launch

14. A Company with a Heart and Soul The Strategy of 2000 & Onwards contd… • Focus on increasing Distribution Penetration into Rural Markets • Rural Development Programs • Opening of New Towns & Direct Servicing • Focus on Demand Generation • Out-spending competition on media • Trial generation & repeat purchase • Consumer Promotions • Brand Activations • Heavy investment behind CSR initiatives to project positive brand & company image • Demand of Brands > Ability to Supply • 5 Focus Brand Strategy

15. How did we do that ? “Power of Vision”

16. A Company with a Heart and Soul Vision • To be recognized as a LEADING and PROGRESSIVELYFORWARD looking FOOD COMPANY, providing the best quality products to everyone in Pakistan • To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen

17. A Company with a Heart and Soul Corporate Objective • Transform EBM into a living institution with a body, mind & soul which is recognized as a good corporate citizen due to its core values as Open minded, transparent, & responsibly delivering consumer satisfaction with a sprit to excel.

19. A Company with a Heart and Soul Core Values • Follows the Highest Ethical Values & Professionalism • Believes Product Quality is next to religion • Pursues International Safe Food Standards & Hygiene to promote National Health since its very inception • Environmentally sensitive & responsible • Attains Technological Advancement in both human resources, plant & machinery

20. A Company with a Heart and Soul Our Philosophy • Food is “Rizk” • “Hygiene” a part of a bigger concept of Pakeezgi • What is the concept of PAKEEZGI for us at EBM? • Innate realization that the Food we offer, MUST be of the highest Quality • Hygiene at the work-place • In our THOUGHTS & ACTIONS • In having a SENSE of RESPONSIBILITY and the HEART to do what’s right

21. A Company with a Heart and Soul Sense of ResponsibilityTowards Consumers • Ensuring Quality & Affordability • No compromise on product quality • Focus on improving internal efficiencies & economies of scale • Offering the best Quality & Taste • Adherence to International Quality Standards • First Biscuit company in Pakistan to attain HACCP & ISO 9001-2000 Certifications • State of the art manufacturing processes with investment of over Rs 2 billion

22. A Company with a Heart and Soul Sense of ResponsibilityTowards the Nation • Company contributes over Rs 850 million to the National Exchequer in the form of Taxes & Duties • Clubbed in the elite group of highest tax-payers • Provides Employment (direct & indirect) to over 2000 ppl approx • Company ethos of a Caring Corporate Citizen • As a Responsibility • As an Obligation of Good Governance

23. A Company with a Heart and Soul Sense of ResponsibilityTowards the Nation We make the world around us better.

24. A Company with a Heart and Soul Sense of ResponsibilityTowards the Nation • Sensitivity to the Environment • Proactive Environmental practices • Water Treatment Plant • Separate Area for Solid Waste Management • ISO 14001 Certification • Only Biscuit company to have received the Environment Excellence Award for 5 consecutive years

25. HEALTH EBM EDUCATION SPORTS A Company with a Heart and Soul Caring Corporate Citizen • Primary focus of Corporate Social Responsibility (CSR) initiatives on 3 key areas: • Health • Education • Sports

26. A Company with a Heart and Soul Sense of ResponsibilityTowards the Nation

27. Where are We? “LAST SEVEN YEAR HIGHLIGHTS” 01-02 TO 08-09

28. 31% 31% -2% +17% 48% 81% 11% Sales Volume – Master Cartons

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37. A Company with a Heart and Soul Recognized as

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39. The Mantra • Leadership • Power of Vision (No Dreams – No Gains) • Magic of a Rallying Call • Directing Peoples Power, Energy, Exuberance & Passion • Make the Change happen • Branding • Learn to reject, Research & Explore, Spend time • Technology • Invest ahead of time, Be the 1st to introduce, Take risk • Customer Care • Suit your business to customers needs, otherwise • Customers will suit themselves • Work Environment • Open, Challenging, Competing, Empowering, Team working & Fun working The Harder You Work…The Luckier You Get!!

40. A Company with a Heart and Soul The Future • God has been kind to us • Our Consumers have been kind to us • We have lived up to their trust and confidence in our company and brands through our Marketing initiatives • Aggressive marketing plans for the future • We have glorious past…an enviable present and God-willing, a prosperous future ahead of us where the Sound of Peek Freans will continue to keep resounding in your hearts

41. THANK YOU A Company with a Heart and Soul