Panther Tyres Limited (hereinafter referred to as ‘Panther’ or ‘the Company’) is a public listed companyincorporated under the Companies Ordinance, 1984 (now “Companies Act, 2017”). The Company is listed on PSX  with a free float of ~25.00% at end Sep'25. Mian Tyre & Rubber Company Limited was established in 1983 as a private limited company and was later onconverted into a public limited company with effect from Oct 2003. The Company changed its name to PantherTyres Limited in Oct-2011. During Feb-21, the Company got listed on PSX. With the operating history of ~40 years,the Company has emerged as one of the top players in tyre and tube market of Pakistan. Panther’s products are divided into three divisions i.e., i) Two Wheel, ii) Three Wheel and, iii) Four Wheel. The Company is one of the major producers of motorcycle & tractor tyres and tubes in Pakistan. It is also engaged inthe manufacturing and marketing of tyres and tubes for rickshaws, forklifts, LTV, scooters, HTV and OTR. Later,the Company also entered into the segment of trucks & bus tyres. During Apr-18, the Company ventured into thetrading business of automobile lubricants and motorcycle spare parts.

The sponsoring family owns the major shareholding of the Company. Mian Iftikhar Ahmed is the major shareholder,he possesses ~47.86% shares of the Company, his wife, Ms. Samina Iftikhar and son Mian Faisal Iftikhar hold shareholding of ~10.34% and 15.83%, respectively. During the year ending June 30, 2021, the Company was listed on the Pakistan Stock Exchange and there has beensome change in the shareholding structure of the Company. However, the major shareholding of the Company remains with the sponsoring family.Mian Iftikhar Ahmed is the founder of the company. He is the pioneer of Bias tyre and Butyl tube manufacturing inPakistan. He is recognized as one of the leaders and mentors of the local tyre industry. Under his leadership, the Company achieved many milestones and became a prominent player in the industry. Panther is the main business of the sponsor's family. They don't have any strategic stake in any other business.Therefore, the financial strength of the sponsors is deemed adequate.

The overall control of the Company vests in 7-members Board of Directors. Two are executive directors, including the CEO, two are non-executive members of the sponsoring family and three directors are independent. The roles of Chairman and CEO have been segregated which has improved the governance structure of the Company. Mian Iftikhar Ahmed (Chairman of the Board) has extensive experience in the tyre industry. Other board membersare also thorough professionals and carry experience in managing business affairs in different sectors.During FY24, various board meetings were held. Attendance of board members in these meetings remained good. An internal audit department reporting directly to the board is in place. The external auditor of the Company is oneof the big 4 audit firms, KPMG Taseer Hadi & Co. Chartered Accountants. The auditors issued an unqualified auditopinion on the annual financial statements of the Company for the period ending June 30, 2025.

Panther has a lean organisational structure with an experienced management team; and a balanced mix ofprofessionals from the FMCG industry (including Chartered Accountants and Engineers). The majority of the senior management has been associated with the company for a long time. As the role of Chairman and CEO has been segregated, Mian Faisal Iftikhar, son of Mian Iftikhar Ahmed has takenup position as Chief Executive Officer of the Company after the resignation of Mian Iftikhar Ahmed. He is assisted by a team of qualified professionals.Currently, the Company has three management committees in place. Panther is currently equipped with the latest SAP solution package i.e., SAP ECC. 6.0. It was successfully implemented across the company in June-13 by Abacus Consulting. The SAP system is a business software package designed to integrate all areas of the business. The corporate structure of the Company is divided into various departments, each having an effective Internal Control System to ensure the achievement of overall strategic goals and reliable financial reporting. Different portals have been established to be used for customized management needs. Back-up policies and disaster recovery plans are in place to ensure smooth functioning.

The tyre industry in Pakistan plays a vital role in the broader mobility sector, with demand closely linked to replacement cycles and sales of automobiles and motorcycles. Given the industry’s heavy reliance on imported raw materials (natural rubber, synthetic rubber, carbon black, etc.), it remains structurally vulnerable to exchange ratevolatility and global commodity price swings. Demand is predominantly replacement-driven (~80–90%), while OEMs account for a smaller share. The 2/3-wheeler segment continues to anchor industry volumes, with over 1.5million units sold in FY25, supported by affordability and resilient rural demand. In the commercial segment,demand for Truck and Bus Radial (TBR) tyres is expanding, aided by regulatory push for localization, ongoingimport substitution, and rising logistics requirements. In FY25, truck and bus sales stood at ~5,200 units, while theLCV and pickup segment posted a strong ~61% volumetric growth, reinforcing the strategic significance of thecommercial tyre space. Conversely, the agricultural tyre segment witnessed a slowdown, with tractor salesdeclining to ~29,000 units in FY25 versus ~45,911 units in FY24, reflecting a ~37% contraction. The declineunderscores pressure on rural incomes and mechanization uptake. Nonetheless, the segment remains strategicallyimportant, with prospects of recovery tied to improvement in rural purchasing power. Overall, the industry exhibitssteady underlying demand potential, supported by replacement needs, gradual localization initiatives, and growingexport avenues. However, rising input costs, currency depreciation, energy shortages, and competition fromsmuggled and under-invoiced tyres continue to weigh on sector margins. Future growth remains contingent onmacroeconomic stability, sustained policy support for localization, and the industry’s ability to diversify its exportbase. The Company has evolved to become one of the largest and leading suppliers and manufacturers of Tyres andTubes in Pakistan. The Company is also honoured suppliers of Suzuki, Honda and Yamaha for the past 30 years.The Company has achieved a milestone in captivating a vast extent of customers from Asian, Middle East, African &European countries. Moreover, the Company is the second only manufacturer of tractor tyres and TBB tyres inPakistan and first only manufacturer of off-the-road (OTR) tyres. During FY25, Panther Tyres recorded net sales of PKR 32,567 million, reflecting a 10.3% YoY increase over FY24(PKR 29,523 million). Growth was driven by continued recovery in the automobile and allied sectors, with highertraction in both the 2- and 3-wheeler as well as tractor tyre segments. The topline expansion was supported byvolume improvement and moderate pricing adjustments, while the Company’s diversified customer mix across OEM and replacement markets continued to provide revenue stability. Profitability margins softened slightly during FY25 amid elevated input and energy costs. Gross profit marginstood at 13.1% (FY24: 14.6%; FY23: 14.5%), while operating margin was recorded at 7.7% (FY24: 8.5%). The net profit margin settled at 1.3% (FY24: 1.6%), reflecting increased taxation impact and sustained cost-side pressures.Nonetheless, the improvement in demand outlook, cost rationalization initiatives, and enhanced productionefficiencies are expected to support gradual margin recovery going forward. However, as of 3MFY26. the Company achieved a topline of PKR 8,918mln, and net profit of PKR 283mln. The Company maintains a fairly diversified revenue base, with a greater share derived from the replacementmarket. While OEM demand has declined amid economic headwinds, the replacement market continues todemonstrate relative stability. However, intensifying competition in the replacement segment remains a keychallenge. Additionally, volatility in raw material prices and exchange rates will continue to be critical determinantsof gross margin performance.

During FY25, Working capital metrics remained largely stable, supported by disciplined inventory management.Gross working capital days were recorded at 106 days (FY24: 107 days), while net working capital days stood at 84days (FY24: 87 days). The Company continues to rely on a mix of internal cash generation and short-term financingto fund its operational cycle, with prudent liquidity management mitigating pressure from elevated borrowing costs. Cash flow coverages remained under pressure during FY25 despite a modest improvement in topline. Free cashflow from operations (FCFO) was reported at PKR 2,386 million (FY24: PKR 2,418 million). However, due to higher finance costs and taxation, EBITDA-to-finance cost slightly improved to 2.1x (FY24: 1.8x), while FCFO-to-finance cost remained stable at 1.7x (FY24: 1.7x). Sustained improvement in cash flow generation remains critical tosupport financial flexibility and debt servicing capacity. As of Sep-25, total borrowings increased to PKR 11,832 million (FY25: PKR 10,839 million), with short-term borrowings comprising ~63.8% of total debt. The leverage ratio improved to 56.6% (FY24: 60.7%), reflecting partial debt containment and retained earnings growth. Despite a leveraged capital structure, the Company’scapitalization profile remains manageable, backed by a stable equity base and consistent operational performance.

Panther Tyres Limited has issued its first rated, secured, privately-placed, short-term Sukuk of up to PKR 2,000 million on 2nd January'2026, to support the Company’s working capital requirements. The Sukuk carries a markup of 6-Month KIBOR + 0.50% with a tenor of up to six (6) months from the date of drawdown. The profit and principal will be paid in bullet form at maturity.

The underlying instrument will be secured by a ranking charge over current assets of the company.

A Debt Payment Account (DPA) will be maintained under the lien of the Investment Agent to ensure timely settlement of obligations, with gradual funding before maturity. The first payment equivalent to PKR 500 million shall be made on or before 21 days before the maturity date, second payment on or before 15 days,3rd payment on or before 7 days.and last 4th payment on and before 2 days, before maturity of issue. Such that amount equivalent to full issue is available in the DPA, 02 days before the maturity date.