With the 65 Years, Story of Excellence, we produce a testament of the Companys work ethic and commitment to help develop

diverse sectors of agriculture, manufacturing, trade and social responsibility, et al. Our story of 65 rewarding years encapsulates the key milestones we have thus far crossed intertwined with the meaningful contribution we have made along the way in social and economic terms. Our journey continues as we endeavour to outdo ourselves in setting the highest standards of corporate excellence.

TABLE OF CONTENTS

PURSUIT OF EXCELLENCE FIRST MULTINATIONAL IN THE COUNTRY PROMOTING INDUSTRIALIZATION & LOCAL BUSINESSES ESTABLISHING SUSTAINABLE AGRICULTURE GENERATING REVENUE FOR GOVERNMENT BRANDS WITH LONG HERITAGE GENERATING INCOME AND EMPLOYMENT TOWARDS SETTING STANDARDS PROVIDING LEADERSHIP IN CORPORATE GOVERNANCE CARING FOR COMMUNITIES CULTURE OF DEVELOPING NATIONAL TALENT

PURSUIT OF EXCELLENCE
Pakistan Tobacco Company Limited (PTC) is the oldest multinational in Pakistan that has been contributing towards the economic, social and human resource development of the country in various forms for the past 65 years, inter alia, through: Accelerating the development of Pakistans industrial and overall business sector not only by year-on-year investments in the in-house production facilities, but more importantly by strong external economic linkages (both backwards and forward) which the Company nurtured and fostered for the last many decades; to an extent that most of those linked businesses are now leaders in their own field, and are substantially contributing their own share to the national economic development and revenues; Transforming the agricultural sector through PTCs extensive agronomy programs for farmers, not only making tobacco crop yields in Pakistan one of the highest in the world but also helping farmers utilize the skills, technology and cultivation processes for improvement of other crops as these initiatives are not limited to tobacco farming, thereby enhancing overall agricultural productivity in the country; Generating income and employment for the last 65 years for millions of people all over the country, with nearly half a million people in Pakistan currently associated with PTCs operations for their source of livelihood;

Mr. E.H. Hare - Territorial Director, British American Tobacco Company (BAT), with team on 7th December, 1956

Mr. R.B.Dobson - Director British American Tobacco Company (BAT), with team and Raja Ghazanfar Ali from Jhelum on 21st May, 1957

Contributing billions of rupees annually to the Government treasury in the form of taxes which help Pakistan in meeting developmental objectives; Leading by setting new benchmarks and constantly improving its Environmental, Health and Safety (EH&S) performance thus enhancing national standards in this important field; Adhering to good Corporate Governance and being consistently recognized as one of the Best Governed Companies in the country;

Supporting sustainable development in Pakistan through its Corporate Social Responsibility programs, with primary focus on sustainable agriculture, afforestation, empowerment, and improved civic life; Developing National Talent Pool by hiring and training over the years thousands of managers who not only contribute to Companys business results, but also apply their skills, learnings, and experiences wherever they chose to work thus playing a vital role in the national economic development.

FIRST MULTINATIONAL IN THE COUNTRY

Pakistan Tobacco Company Limited (PTC) was incorporated in 1947 as the first foreign investment in the newly born Pakistan immediately after independence, when it succeeded Imperial Tobacco Company of British India which had been operational in South Asia since 1905. This makes PTC the oldest multi-national of Pakistan. Starting from a single warehouse near Karachi port, the Company has now developed into the largest cigarette manufacturer of Pakistan. For PTC it has been a voyage in pursuit of excellence from 1947 to 2012, driven by the vision to be the First Choice for Everyone. This has been achieved under the guidance of the Companys principles of gaining strength from diversity, inculcating openmindedness, having freedom through responsibility, and by encouraging individuals to have an enterprising spirit.

Mr. Harold Macmillan, British Prime Minister, during visit to Pakistan Tobacco Company (PTC) factory in 1958.

Globally, PTC has reached a significant milestone in its historymore than 100 years of its parent Company, British American Tobacco (BAT), which is the worlds second largest quoted tobacco group by global market share, with more than 200 brands in its portfolio sold in around 180 markets. BAT holds robust market positions in each of the regions it operates in and has leadership in more than 50 markets.

Mr. B.Fane Saunders - Chairman Pakistan Tobacco Company (PTC) on 22nd January, 1956.

In 1902, James Buchanan Duke (Co-founder of British American Tobacco) sent a telegram publicizing a successful deal with British tobacco manufacturers, founding BAT.

PROMOTING INDUSTRIALIZATION & LOCAL BUSINESSES

Pakistan Tobacco Company Limited (PTC) has significantly contributed to the economic development of Pakistan by continuous investments in the industrial sector. There has been a ceaseless effort to modernize Companys operations by introducing new and innovative concepts, optimal processes and state of the art technology thereby increasing investment in the country. PTC is the first Company in Pakistan which was awarded class A status, as part of the international total business excellence program called the Manufacturing Resource Planning (MRPII) Version5. In a re-certification audit by internationally renowned consultants Oliver Wright, PTC was again awarded MRPII class A status, making it the first Company within the British American Tobacco Group to have achieved such prestigious recognition. PTC has also played a key role in the development of local businesses through the strong external linkages it has fostered in the last 65 years. From cultivating a strong relationship with those supplying raw materials and other packing and printing materials, PTC has built and nurtured forward linkages with those who provide services like transportation, insurance, distribution, wholesale, retail, banking services, etc.

Syed Babar Ali

Chairman Packages Pvt. Ltd

I have known the senior management and many employees of PTC ever since 1948. The Companys success has been because of its commitment to employing quality people on merit and providing them opportunities of learning and growth. PTC is also successful because of its high ethical standards. Packages Ltd values its strong relationship with PTC and, over the years has benefited much from the best practices that PTC has shared with Packages Ltd and their constant demand for improving service and quality.

The Company has worked hand-in-hand with local business partners to improve standards and processes, transferring technology and knowledge, and sharing best practices from across the globe. Business Enabler Survey Tool (BEST) of PTC assesses the sustainability performance of materials suppliers, providing a framework for continuous improvement. Suppliers must obtain Approved, Qualified or Certified status in order to be enlisted and retained. This not only helps valued business partners become more efficient and responsible but allows them to expand and grow in new spheres. Numerous businesses in Pakistan that used to be dependant solely on PTC have now grown to become well-established industry leaders.

PTC has over the years developed exemplary trade distribution networks. The systems and processes developed by it are considered by other industries as a model of efficiency and speed. Over the past 65 years hundreds of distribution houses all over the country have entered into long term association. These valued business partners benefit from the need to learn and adhere to global standards, and the continuous push for innovation and up gradation which PTC endeavours to inculcate. This has been a journey which has taken them on the path of distribution excellence, thereby improving standards of service delivery in the country.

ESTABLISHING SUSTAINABLE AGRICULTURE

Pakistan Tobacco Company Limited (PTC) strongly believes that the business must demonstrate responsibility in everything it does. The Company is highly committed to responsible behaviour which is an integral part of its sustainability agenda. Sustainable business practices are at the heart of PTCs strategy. It believes that the business has a key role to play in helping society to achieve the necessary sustainable balance of economic growth, environmental protection and social progress in ways that will build value for its stakeholders, including shareholders. From inception, PTC has always worked closely with farmers, who are most valued business partners, to help them improve their skills and impart to them the best agricultural practices from around the world.

Sahibzada Khalid
Former Chairman Pakistan Tobacco Board Government of Pakistan

I found PTC to be one of the most efficient and organised multinational companies of the country, portraying standards that should be emulated by other organisations. They lay great focus on their growers and are the only tobacco company which carry out R&D activities. Their position in the market is proof of their commitment to further improve standards and enhance quality. It was a pleasure to have interacted with them.

The Company pioneered to set up one of the best extension program for farmers that has also contributed to the modernization, development and growth of the agricultural sector in the country. Farmers are constantly helped through field workshops where they learn about integrated pest management, appropriate use of agrochemicals, etc. PTC has also been providing them agronomy support which includes guidance on crop management, soil health, water management and environmental friendly practices. This also includes advice on how to maximise yields, optimise crop quality, achieve reliable returns and improve the long-term sustainability of a farm.

These initiatives are not limited to tobacco farming; these relate to overall agriculture and helps farmers improve the quality and yields of other crops, making them more self-sufficient. This has made tobacco crop yield in Pakistan one of the highest in the world and also made Pakistan a net exporter of tobacco thereby bringing in the much needed foreign exchange. PTCs extension services have helped farmers utilize the acquired skills, technology and cultivation practices for improvement of other crops. Consequently, this has improved income for farmers and increased the overall agricultural productivity in the country.

Mr. Aslam Khaliq

Joined in 1967 Retired as Chairman in 2007

I was very fortunate that I moved to different functions and consequently enjoyed continuous new challenges and experiences at PTC. The three things that made me believe in PTC were firstly the young but strong talent base developed

through outstanding training both inside and outside Pakistan. Secondly the leading edge processes, from Strategic Planning down to Records Management. And thirdly an open culture and the caring attitude.

Mr. Najmus Saquib Hameed

Joined 1968 Retired as Chairman in 1994

PTC is a unique Company in the way it engenders loyalty and commitment in the management. Managers went far beyond the call of duty sometimes at the expense of the family to achieve goals.

This is great asset and many companies would give a lot to be able to create this can-do attitude among their management. You cannot buy this with money; it goes much deeper an alignment between the managers and the Company.

10

GENERATING REVENUE FOR GOVERNMENT

Fiscal revenues are a key source of funding for public sector development projects, including infrastructure (motorways, dams, etc.) and services (social sector programs). Over the last 65 years PTC has consistently contributed billions of rupees in the form of taxes which helped our country in meeting its developmental objectives. In the last 3 years alone, PTC contributed more than Rs. 120 billion in the form of federal excise and sales tax to the Government of Pakistan.

In the last financial year, PTC contributed more than Rs. 45 billion as tax to the Government of Pakistan, making the Company one of the leading tax payers and revenue generators in the private sector in the country.

A very transparent organization.

Mr. Abdullah Yousaf
Former Chairman Federal Board of Revenue Government of Pakistan

11

Mr. Ahmed Zeb

Joined in 1974 Retired as Director Supply Chain, South Asia Area, in 2011

My international exposure of about a decade was indeed the high point of my career at the Company. This equipped me to transform PTCs operations and make them world class. PTC is an ethical company.

Its corporate governance is based on the highest of standards. PTC not only pays all its taxes, but helps develop other businesses by sharing its best practices and learnings.

Mr. Mobasher Raza

Joined in 1979 Currently Deputy Managing Director and Director Finance

Even back in those days, PTC was known to be one of the top multinationals in Pakistan. The three things that make me believe in PTC are firstly, its Heart - has a softer side, the Company offers a friendly and secure environment. Secondly,

Learning which includes continuously developing and evolving. PTC provides a lot of opportunities to learn and grow. Lastly it is transparent i.e. very fair and transparent in all its processes.

12

BRANDS WITH LONG HERITAGE The Legacy

The Present

13

Mr. Zafar Aslam Khan

Joined in 1996 Currently Head of Plan (Supply Chain), Western Europe Region (BAT) Works in United Kingdom (U.K.)

In 2010 I was the Factory Manager, Akora Khattak Factory of PTC and currently I am working at BAT U.K. I became a part of the Company because of the prospects of professional development and of International Experience.

Over the last 16 years I have worked in different countries gaining knowledge of and exposure to different cultures and work practices. I believe that a feeling of comradeship is a core part of PTCs fabric.

Mr. Raheel Khan

Joined in 1996 Currently Area Head of Brands, Malaysia Area (BAT) Works in Malaysia

Over the last 16 years, I have worked in different countries on a variety of roles. My last designation at PTC was Area Head of Brands, South Asia Area. I believe in PTC because of the culture of the Company, training it provides at all

levels, and the empowerment it provides to its managers. When I look back, it is a combination of all three, which makes PTC one of the best companies in Pakistan guaranteed!

14

GENERATING INCOME AND EMPLOYMENT

Since 1947, PTC operations have employed thousands directly and millions indirectly, thus supporting the livelihood of millions of people in Pakistan. These include a variety of people living in Pakistan; such as farmers, factory workers, managers, printers, suppliers, transporters, distributors, wholesalers, retailers, etc.

Today PTC takes pride in the fact that more than half a million people across Pakistan are economically associated with its operations. There are very few examples where one Company, in contrast to an industry or a sector of the economy, plays such a vital economic role in the country.

15

Mr. Shahid Afzal

Joined in 1997 Currently Head of Finance, Vietnam Cluster (BAT) Works in Vietnam

My last designation at PTC was Head of Operations Finance. There is a lot of focus on leveraging inherently high potential of the PTC team by motivating the team at all levels; bringing out their passion and thus enabling ordinary people to do extraordinary things!!

This was achieved through high focus on training and development; public reward and recognition of the hard work and efforts and pursuit of excellence in every part of the business.

Mr. Ali Naseer

Joined in 2003 Currently Regional Head of Corporate and Regulatory Affairs, Asia Pacific Region (BAT) Works in Hong Kong

My last designation at PTC was Area Head of CORA, South Asia Area. I became a part of PTC because of the considerable heritage and reputation of the organization in Pakistan.

My experience at PTC has been and still is outstanding. I felt that the organization always responded to every challenge in a novel and effective way, which is an integral part of what makes PTC great.

16

TOWARDS SETTING STANDARDS

Leaders create new possibilities and avenues where none existed before. Environment, Health and Safety (EH&S) journey of PTC has been just that, defining the rules of the game. The Company has always been committed to conducting its operations in a manner that sustain the environment and protect the welfare and safety of those involved in production processes. PTC has a proven history of commitment towards EH&S in order to do business responsibly and sustainably for a better tomorrow. Not only national but both Khattak, does PTC have an impeccable regulatory compliance record the factories, Jhelum and Akora and also its Leaf Operations,

received ISO-9001 and ISO-14001 certification many years ago, establishing compliance to global standards. Both its factories were the first manufacturing facilities in Pakistan to be certified as 5-S compliant (i.e., Sort, Set, Shine, Standardize, and Sustain) by National Productivity Organization of Pakistan in collaboration with Asian Productivity Organization, Japan. PTCs continuous efforts and achievements have been recognised at various levels and earned it numerous international awards. Companies across Pakistan have looked up to PTC as a model in EH&S initiatives and practices, which contributes in improving the national standards in this important field.

Mr. Azam Khan

Former Chairman Pakistan Tobacco Board Government of Pakistan

As chairman of PTB for approximately 2 years I had a great experience with PTC. PTC has always been perceived as well organised Company in my view. While dealing with PTC management, they always exhibited professional and honest attitude and advised me in the right direction, wherever needed, without having any vested interest. I must appreciate the afforestation program of PTC.

17

PROVIDING LEADERSHIP IN CORPORATE GOVERNANCE

Pakistan Tobacco Company Limited (PTC) is committed to good corporate governance and to achieving its business objectives in a manner which is responsible and consistent with its belief in honesty, transparency and accountability. Corporate governance for PTC is not simply an exercise in compliance, but is considered as a key element underpinning the sustainable, long-term growth of its business. Accordingly the Company has always endeavoured to stand for conducting its operations with integrity and responsibility. PTCs meticulous compliance credentials, be they in the field of taxes, laws, regulations, or industrial relations, all are considered of the highest level not only by other companies, but also by those organizations that examine such affairs. The transparency of PTCs operations, systems, processes, and the efforts put in place to ensure rigorous adherence to the internal standards of conduct and the full compliance of prescribed regulations are well-recognised. That is why PTC has consistently been certified as one of the best managed companies in Pakistan.

24th Corporate Excellence Award in Food & Allied Sector awarded to Pakistan Tobacco Company (PTC) by Management Association of Pakistan (MAP).

18

25th Corporate Excellence Award in Business and Industrial Category awarded to Pakistan Tobacco Company (PTC) by Management Association of Pakistan (MAP).

26th Corporate Excellence Award in Business and Industrial Category awarded to Pakistan Tobacco Company (PTC) by Management Association of Pakistan (MAP).

Mr. Razak Dawood

Former Minister For Commerce Government of Pakistan

PTC is a resilient organization with dedicated and capable human resource. The Company has remarkably managed to maintain its standards over the years through its well defined processes and good management.

19

CARING FOR COMMUNITIES

For PTC Corporate Social Responsibility (CSR) is aimed at caring for and working with communities where it operates in, going beyond commercial relations and legal requirements. The Company has been one of the pioneers of CSR Programs in Pakistan. The five CSR platforms PTC focuses on are: sustainable agriculture, afforestation, empowerment, health services and disaster relief. Some of the initiatives that have been supported by the CSR Programs are: Learning Resource Centres, Mobile Doctor Units, and Clean Drinking Water Plants. PTC and its people, not only in Pakistan but worldwide, have contributed to various relief and rehabilitation efforts.

Free Medical Camp Set Up at Mianwali by Pakistan Tobacco Company Limited (PTC).

Relief Goods Being Sent in 2010 for Flood Affectes.

Public Sculpture (Globe) on Constitutional Avenue, Islamabad, donated by Pakistan Tobacco Company Limited (PTC).

20

PTCs afforestation program in the country, which started in 1981, is the largest private sector driven initiative in Pakistan. Over these years PTC has distributed more than 57 million samplings free of cost throughout the country. It not only encourages farmers to take part in afforestation efforts but also motivates its people to actively participate in such environmental protection programs.

PTCs Corporate Social Responsibility (CSR) programs have won numerous awards including the Environmental Excellence Award (2002) the ACCA-WWF Pakistan Environmental Reporting Award for the Best Sustainability Report (2007), and CSR National Excellence Award (2011) awarded by the CSR Association of Pakistan.

CSR National Excelllence Award, 2011.

Lt. General (Retd.) Ali Kuli Khan, Inaugurating a Public Park Renovated by Pakistan Tobacco Company Limited (PTC).

Afforestation Program - Working for a Greener Tomorrow by Pakistan Tobacco Company Limited (PTC).

21

CULTURE OF DEVELOPING NATIONAL TALENT

Pakistan Tobacco Company Limited (PTC) has always considered people as its most valuable asset. It has been focusing on driving high performance and encouraging greater productivity. The excellence of its people increases the Companys competitive advantage and strengthens its culture and values. Hence, the emphasis is on continuous learning. There is a constant effort to develop the skills of people at all levels. The growth and learning opportunities provided by the Company for its people include Growth Academy, International Assignments, Leadership Programs, etc. All these programs foster a culture of talent development, making PTC a virtual talent development institution. For decades, working for PTC has been one of the aspirations of the top graduates of most colleges and universities in Pakistan. Since 1947, a multitude of managers have been hired and undergone rigorous training at PTC. These managers not only worked for PTC but used their skills and experiences wherever they chose to work, thus making their contribution to the national development.

Celebrating Womens Day, Jhelum Factory, 2008.

22

SUCCESS IS A JOURNEY, NOT A DESTINATION.

23

THE JOURNEY CONTINUES

Managing Director and CEO

Graeme Amey

Chairman and Non-Executive Director

Mueen Afzal

Deputy Managing Director and Finance Director

Mobasher Raza

Lt. Gen. (Retd.) Ali Kuli Khan Khattak

Non-Executive Director

Abid Niaz Hasan

Non-Executive Director

Non-Executive Director

Syed Asif Shah

24

Mustanser Muhammad Ali Khan

Supply Chain Director

Strategy and Planning Director

Feroze Ahmed

Tajamal Shah
Legal Director

Head of Corporate and Regulatory Affairs

Asim Imdad Ali

Shehzad Munim
Head of Marketing

Syed Imtiaz Faruque

Head of Human Resources