I’M M. A. MANNAN FROM PAKISTAN PRESIDENT & CEO TCS HOLDINGS

PAKISTAN AT A

GLANCE

CPEC

The single largest investment in Pakistan is the

US$52bn China-Pakistan Economic Corridor (CPEC)

THE FUTURE WITH CPEC

Few examples of Distance saved: Europe – Western China (9,535 miles) Middle East – Western China (10,242 miles)

40,340 POINTS ASIA’S BEST PERFORMING STOCK MARKET

Source: Bloomberg: http://www.bloomberg.com/news/articles/2016-06-14/best-performing-asian-stock-market-may-get-extra-boost-from-msci

LANDSCAPE THE E-COMMERCE OPPORTUNITY

TOTAL POPULATION

36% URBAN

64% RURAL

6TH MOST POPULOUS NATION IN THE WORLD

4TH LARGEST MIDDLE CLASS POPULATION IN DEVELOPING ASIA

8MN+ DIASPORA AROUND THE WORLD

200,000,000+

Source:

Pakistan Startup Report- http://bit.ly/1kvk2tU

18% INTERNET PENETRATION

1BN NEXT NO. OF INTERNET USERS ARE GOING TO COME FROM PAKISTAN, INDIA, INDONESIA, BRAZIL, CHINA AND BANGLADESH

80% SPEND MORE THAN AN HOUR ONLINE PER DAY

44% ACCESS INTERNET VIA SMARTPHONES

28MN+ USERS ON TOP SOCIAL NETWORKS

65% OF SOCIAL NETWORK USERS ARE UNDER THE AGE OF 25

INTERNET USERS

34,400,000+

👦👧

Source:

“We are Social” international conversation agency Singapore 2016

126,300,000 66% MOBILE PENETRATION

5TH LARGEST BASE OF MOBILE USERS IN ASIA

110MN 3G/4G EXPECTED USERS BY 2019

Source:

“We are Social” international conversation agency Singapore 2016

1.5BN$ THE ESTIMATED PAKISTAN’S E-COMMERCE POTENTIAL

3% OF THE POTENTIAL!

45MN$ ESTIMATED E-COMMERCE SALES, IN SPITE OF THE POTENTIAL, THE PAKISTANI MARKET REMAINS UNDERSERVED, CONVERTING TO..

Source:

Adventus Capital, Gratner, Internal analysis

RETAIL MARKET SIZE OF PAKISTAN

152BN$

NR CAGR: 19%

FACTUAL INSIGHT A

MO

UN

T I

N $

(M

N)

48 45 47

53

64 70

86 93

104

123

0

20

40

60

80

100

120

140

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(Budgeted)

Net Revenue

CHALLENGES 5 BOTTLENECKS TO E-COMMERCE GROWTH

AWARENESS

Apt KNOWLEDGE about market

Adequate CONFIDENCE in its functionality

TRUST in the system

An upsurge in foreign corporate investments, coupled with a boost in marketing efforts, have collectively led to the growth in e-commerce awareness and trust, generating an urge for online exchange.

PAYMENTS It is imperative to build upon the foundations of legislation & seller

responsibility to enable a shift towards electronic payments.

Of all orders CASH ON DELIVERY covers 90% and will remain sizable going forward

Recently launched Card on Delivery (Swipe on Delivery) is a stop-gap measure

Traditional method CARD ONLINE & IBFT are available

MOBILE ACCOUNTS is now gaining popularity & is up by 622% to 13Million users*

*Source: http://pakwired.com/mobile-wallet-usage-is-on-the-rise/

CUSTOMER EXPERIENCE Improving customer experience is already at play in Pakistan through ongoing efforts involving the enhancement of supply chain management and vendor technology transfer.

Inventory management challenges resulting in UNAVAILABILITY OF STOCK & PRICE VOLATILITY

SLOW DELIVERIES - Average TAT is 9 days

LOGISTICS The Logistic industry has recognized the opportunity and are developing customized solutions catered towards the online shopper.

FAST PAYMENTS TO SELLERS/MERCHANTS would greatly benefit the Industry growth

SPEED & PRICE Next Day, 2-day, and Overland Delivery options

ORDER TRACKING facilities

INTEGRATIONS with E-COMMERCE STORES OPEN BOX DELIVERIES could help increase the

trust levels

FRESH/COLD SOLUTIONS

PATIENT CAPITAL Success in the e-commerce industry is synonymous with risk taking, or in other words the ability for invested capital to withstand sufficient deficit during initial years. Investment in South-east Asia and the Middle east has begun, however, Pakistan awaits its opportunity.

CURRENT SCENARIO THE BUSINESS POTENTIAL

BLACK FRIDAY – NOVEMBER 25, 2016

Orders equal to two regular days in the first 10 seconds of the sale

55% of the total orders were on a mobile device

60% traffic on mobile

35% of the total orders were prepaid transactions

More grocery & beauty bundles were sold on black Friday than in all of 2016

60% deliveries made before the end of event

1000+ phones delivered in 120mins

First time ever motorbikes & gold coins sold online

Outreach: 50% urban – 50% rural

$14 MILLION IN E-COMMERCE SALES ON A SINGLE DAY IS A MILESTONE FOR ALL OF

PAKISTAN

3,193

7,688 8,379

88,907

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2012-13 2013-14 2014-15 2015-16

FRONT-END ONLINE STORE ORDER TREND

141% 9%

961%

961% growth in orders in 2015-16

REBRANDED FROM

TCS CONNECT & LAUNCHED YAYVO.COM

31 39 47 45 38 41 45 54 75 81 78 97 133 157 147 139 153 188 206 230 166 245 205 278 398 26%

52% 45% 23% 32% 45%

74%

142% 161% 152%

213%

329%

406% 374%

348% 394%

506%

565%

642%

435%

690%

561%

797%

1184%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

1000%

1100%

1200%

0

50

100

150

200

250

300

350

400

Shipments

Growth vs Nov 14

BUSINESS “EXPLOSION” IN E-COMMERCE SHIPMENTS T

ho

usa

nd

s

31 K

398 K

ANY QUESTIONS? You can find me at mannan@tcsholdings.com

/mannanpak @mannan_pak