The presentation summarizes the findings from LightCastle's Business Confidence Index 2016.

1. ©LightCastle Partners 2016 Pg 1

2. COMING OF AGE OR A FALSE DAWN?
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6.5
7.1
6.5
6
6.1
6.3
6.5
6.3
6.03
6.29
6.51
6.8
5
5.5
6
6.5
7
7.5
2011 2012 2013 2014 2015 2016
Bangladesh GDP Growth Comparison
WB IMF

3. HOW DOES THE FUTURE LOOK LIKE?
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Government
Private
Sector
Growth
Taxation Regime
Logistics and
Infrastructure
Power &
Energy
Policy
Support
Investments
International
Trade

4. LIGHTCASTLE BUSINESS CONFIDENCE INDEX

5. HOW WAS THE INDEX CALCULATED?
Pg 5
Primary Sector
(15%)
Jute, Protein & Frozen
Food, Tea and Agro-
processing
Secondary
Sector (40.6%)
RMG & Textiles,
Pharmaceuticals, Power,
Cement, Edible Oil, Steel
and FMCG
Tertiary Sector
(44.4%)
Financial Institutions,
High End Hotels,
Business Services and
Information Technology
• 54 Samples from C-Suite Members
• Surveys conducted from Dhaka,
Chittagong and Khulna
• Conducted during June-July 2016
Harmonized Business Confidence
Index
Business Confidence =
√[(Situation+200) × (Expectations+200) -
200]

6. BUSINESS CONFIDENCE INDEX 2016
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-100 +100
Overwhelmingly
pessimistic
Overwhelmingly
Optimistic
0 +39

7. COMPONENTS OF THE INDEX
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Macro
Economy
Industry
Status
Firm
Performance

8. Pg 8

9. STABLE BUT CAUTIOUS OF
UNCERTAINTY
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• Stable political Conditions and decent government policy support
• Policy support skewed towards some sectors e.g. RMG and IT
• Interest rate decline but still pricy loans

10. CAUTIOUS BUT OPTIMISTIC IN MAKING
INVESTMENTS
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11. POSITIVE ABOUT EMPLOYMENT
GENERATION
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13. SECTOR BASED FEEDBACK
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Agro-Processing
Technology playing a role. Export potential
and forward market consolidation
opportunity
Cement
Government infrastructure projects
sustaining demand. Low prospects of
export.
Power
Tremendous potential but
But red tapes hindering growth
Financial Institution
Sector recovering but classified loan
and declining interests negatives.
Consumer Durables
MAC population growth will lead to
Higher demand.
ITES
Prospects high and augmented by
Government policies.

14. SECTOR BASED FEEDBACK
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FMCG
Demand growing but ‘last mile
logistics’ and focus on BOP market
key to future growth.
High-end Hotels
Cyclical in nature with bulk coming from
Business travel. Recent troubles after
terrorist attacks.
Pharmaceutical
Growth in domestic market to be
stable. But export can open new doors
for growth
Real Estate
Sector still recovering through price
Corrections. Lower interest rates to
Spur demand..
Leather
Vertical integration and rising costs of
Competitor.
RMG
Moving to high end products key to
growth. Competitors’ products
getting pricier.

16. CHALLENGES HINDERING PROGRESS
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17. SALIENT ONES INCLUDE
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18. POSITIVE ABOUT EMPLOYMENT
GENERATION
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19. FUTURE DRIVERS OF GROWTH
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20. ©LightCastle Partners 2016
READY CONTENTS
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21. MANTRA FOR PROGRESS
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• Prioritizing political stability and security
• Facilitating foreign investments in the manufacturing sector
• Incentivizing for export once domestic demand is met
• Increasing rewards and recognition in tax payment
• Connecting academic research to commercial application

22. THANK YOU!
Pg 22