KEC International Ltd. · NSE:KEC

KEC International — Investor Presentation (February 2013)

49 slides from KEC International's investor presentation, February 2013

  1. Slide 1: KEC International Limited Corporate Presentation

    KEC International Limited Corporate Presentation February 2013

  2. Slide 2: Disclaimer

    Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,

  3. Slide 3: Contents

    Company Profile Page 05-11 Business Overview Page 13-37 Contents Management Team Page 39-40 Financial Performance Page 42-47

  4. Slide 4: Company Profile

    Company Profile Page 05-11

  5. Slide 5: KEC International - Introduction

    KEC International - Introduction Key Highlights KEC Businesses Transmission Power System A diversified global infrastructure EPC major Flagship company of the RPG group Transmission Power Systems Leadership in Power Transmission EPC space Over 6 decades of experience Project footprints in 48 countri

  6. Slide 6: Business Portfolio

    Business Portfolio Power Power Cables Telecom Railways Water Transmission Systems Water Transmission Power Cables Telecom Substations Electrification Resource lines LT/HT/EHV Towers Management Water & Towers - Distribution Telecom OPGW Civil & Track Waste Water Lattice & Poles Network Cables Network

  7. Slide 7: Our value drivers

    Our value drivers Vision To be a global leader in Power Transmission and Distribution EPC business and a significant player in other infrastructure business, providing superior value to all stakeholders. Culture Pillars Delivery focus Cost and profitability focus Ownership and Accountability Cross f

  8. Slide 8: Historical Milestones

    Historical Milestones Structures Tower International supplied for 765 kV Railway supply to turnkey Entry in Bhakra transmission Turnkey New transmission Water Nangal project Construction Zealand in Sudan Business Project, India. 1945 1950 1959 1960 1961 1968 1982 1999 2007 2009 2010 2011 Taken over

  9. Slide 9: Geography Wise Business

    Current Order Book - Breakup Robust and Diversified Order Book – ` 10,150 crore ($ 1.9 bn) Business Geography Wise Wise Transmission, 73.1% Power Systems, 12.8% India, 49.5% SAARC (Excl India), 2.8% Cables, 1.4% Telecom, 2.3% MENA, 14.7% Africa & Central Asia, 20.1% Railways, 5.5% Water, 4.9% Americ

  10. Slide 10: Global Footprint

    Global Footprint EPC Projects Tower Supply Footprints in 48 countries across the globe KEC International Limited 10

  11. Slide 11: KEC - Equity Share Information

    KEC - Equity Share Information Shareholding Pattern as on Dec 31st, 2012 Equity Share Information as on Jan 30th 2013  Share Price - ` 59 per share  Market Cap – ` 1,522 Cr. ($ 282 mn) Promoters, 44.5% Institutions, 38.7%  Price to Earning (P/E Ratio)* – 9.9 times Public, 16.8%  Return of avg. E

  12. Slide 12: Business Overview

    Business Overview Page 13-37

  13. Slide 13: Power Transmission

    ORPG Power Transmission

  14. Slide 14: Power Transmission

    Power Transmission  Over 50 years of experience in turnkey construction of transmission lines.  Strong presence in South Asia, Middle East & North Africa (MENA), Rest of Africa, Central Asia and Americas.  Successfully executed turnkey transmission projects and supply of transmission towers in 48

  15. Slide 15: SAE Towers, United States

    SAE Towers, United States Key Highlights Sales Growth  A wholly owned subsidiary of KEC 200  Headquartered in Houston, United States 200 191  Leading manufacturer of lattice transmission towers in the Americas. 150 139  Annual production capacity – 100,000 MTs spread over 2 ($ million) locations

  16. Slide 16: Projects in Diverse Terrain / Climatic Conditions

    Projects in Diverse Terrain / Climatic Conditions KEC International Limited 16

  17. Slide 17: Projects in Diverse Terrain / Climatic Conditions

    Projects in Diverse Terrain / Climatic Conditions Mountains, Hills – UAE, Saudi, India, Mozambique KEC International Limited 17

  18. Slide 18: Tower Manufacturing

    Tower Manufacturing  Largest globally operated tower manufacturing capacity  Multi- locational plants o India - Nagpur (Maharashtra), Jabalpur (Madhya Pradesh) and Jaipur (Rajasthan) o Americas - Monterrey (Mexico) , Belo Horizonte (Brazil).  Manufacturing Capacity - 274,000 MTs (Owned)  In addi

  19. Slide 19: Design, Engineering and Tower Testing Capabilities

    Design, Engineering and Tower Testing Capabilities Design & Engineering  In-house design centers with a strong team of over 100 design experts spread in India and Americas.  Equipped with latest softwares like BOCAD, PLS Tower, PLS Pole, PLS CADD, AUTOCAD, MICROSTATION and Google Earth.  Providin

  20. Slide 20: Industry Outlook – T&D

    Industry Outlook – T&D The T&D industry is expected to show strong demand globally driven by -  Increase in new power generation capacities  Increasing Private Sector Investments in the sector  Investments in interconnection grids/projects by various countries  Replacement of existing aged netwo

  21. Slide 21: Industry Outlook – T&D - Domestic

    Industry Outlook – T&D - Domestic Power Generation Transmission Lines 88,537 110,340 78,700 88,515 54,964 70,286 (MW) (CKM) 11th Plan 11th Plan 12th Plan 11th Plan 11th Plan 12th Plan (Target) (Actual) (Target) (Target) (Actual) (Target) Substation Power Grid (PGCIL) Capex 270,000 ` 1000 bn $ 19 bn

  22. Slide 22: Industry Outlook – T&D - International

    Industry Outlook – T&D - International Key Region Key Demand Drivers Countries South Africa, Nigeria,  Per capita electricity consumption is very low - 553 kwh v/s World average of 2,975 kwh Africa Ethiopia,  Various interconnections are being planned to improve power evacuation infrastructure Ken

  23. Slide 23: Power Systems

    ORPG Power Systems

  24. Slide 24: Power Systems – Key Highlights

    Power Systems – Key Highlights  The Company’s progression from Transmission to Power Systems gives it an advantage to provide end-to-end solutions from power evacuation to distribution to consumers.  This is the second largest business vertical of the Company.  The Company undertakes EPC projects

  25. Slide 25: Cables

    ORPG Cables

  26. Slide 26: Cables – Key Highlights

    Cables – Key Highlights  Fully integrated state-of-the-art manufacturing facilities in different parts of India.  Pioneered production of XLPE cables in India.  Manufactures range of power cables (upto 220 kV) and telecom cables.  Manufacturing locations – Vadodara (Gujarat), Mysore (Karnataka),

  27. Slide 27: Cables – Industry Outlook

    Cables – Industry Outlook  The Current size of cables market in India is estimated to be ` 15,000 cr. ($ 2.8 bn) per annum.  The demand for power cables is mainly driven by the power sector, real estate and industries such as steel, oil & gas, chemicals etc.  The Government of India’s aggressive

  28. Slide 28: Telecom

    Telecom

  29. Slide 29: Telecom

    Telecom Key Highlights  Amongst leading EPC players to provide telecom towers on turnkey basis to operators, tower management companies and utilities.  Experience in laying OFC and OPGW cables on turnkey basis and live line conditions.  Installation and commissioning of GSM/ CDMA equipment.  Ext

  30. Slide 30: Railways

    ORPG Railways

  31. Slide 31: Railways – Key Highlights

    Railways – Key Highlights  Complete turnkey solutions provider in the Railways Infrastructure EPC space. o Civil infrastructure including bridges, tunnels, platform, workshop modernization, station building etc. o Earthwork, new track laying and rehabilitation of existing tracks. o Railway electrif

  32. Slide 32: Railways – Industry Outlook

    Railways – Industry Outlook Industry Outlook – India Investment in Railway Sector in India 6,000 ` 5,218 bn 12th Five year plan (2012-17) $ 97 bn  Targets spend is 2x as compare to 11th plan target. 5,000 4,000 Dedicated Freight Corridors (DFC) ` 2,618 bn  Two DFCs have been planned – Eastern (183

  33. Slide 33: Water

    Water

  34. Slide 34: Water – Key Highlights

    Water – Key Highlights  Undertakes Water Resource Management Projects - Includes construction of canals, dams, tunnels, embankments and lift irrigation schemes.  Undertakes Water and Waste Water Treatment – Includes intake system, transmission, storage, collection, treatment and disposal of waste

  35. Slide 35: Water – Industry Outlook

    Water – Industry Outlook Scarcity of Water in India Investment in Water Sector in India  India has 16% of the world’s population; but only has 4% of world’s total available fresh water. * ` 7593 bn 8,000 $ 141 bn  While the availability of fresh water is almost 7,000 fixed, the demand for water is

  36. Slide 36: New Business Initiative

    New Business Initiative

  37. Slide 37: Entry in Wind and Solar space

    Entry in Wind and Solar space  As part of KEC’s continuous expansion strategy, the company is looking at providing Engineering, Procurement and Construction (EPC) solutions for Solar and Wind sector.  Solar Sector  In India, Solar sector has started opening up 2011 onwards  India is blessed with

  38. Slide 38: Management Team

    Management Team Page 39-40

  39. Slide 39: Highly Experienced Team

    Highly Experienced Team  Meritorious Chartered Accountant with  Meritorious  Science an Advanced Management Programme Chartered graduate & from Harvard Business School. Accountant, an MBA from Company Secretary IMDR, Pune. with an Advanced  40 years of varied experience across Executive  More t

  40. Slide 40: Highly Experienced Team

    Highly Experienced Team Chip Breitweiser Randeep Narang Nikhil Gupta CEO - SAE Towers Executive Director – Executive Director - South Asia Transmission Cables  Engineer with over 25 years of  Commerce graduate and an MBA from NMIMS,  Meritorious Chartered Accountant and graduate experience in the

  41. Slide 41: Financial Performance

    Financial Performance Page 42-47

  42. Slide 42: Financial Performance – Last years

    Financial Performance – Last 5 years Net Sales Order Book 5 Yrs. CAGR 23.3% 5815 5 Yrs. CAGR 22.7% 8,572 6000 9,000 7,800 4477 4500 3907 6,750 5,163 5,500 3429 (` crore) 4,318 (` crore) 2814 4,500 3000 1500 2,250 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 $ Mn 553 674 768 880 1143 $ Mn 84

  43. Slide 43: Financial Performance – Last years

    Financial Performance – Last 5 years Operating Cash Flow Net Working Capital 120 106 600 549 85 84 450 90 377 69 73 (` crore) (Days) 300 60 170 150 30 35 4 0 0 2007-08 2008-09 2009-10 2010-11 2011-12 2007-08 2008-09 2009-10 2010-11 2011-12 $ Mn 1 74 7 33 108 Gross Debt/Equity Net Debt/Equity 1.6 1.5

  44. Slide 44: Profit & Loss Highlights (Consolidated)

    Profit & Loss Highlights (Consolidated) (` Crore) ($ Millions) Growth Growth Particulars YTD FY13 YTD FY12 YTD FY13 YTD FY12 (Y-o-Y) (Y-o-Y) Net Sales 4,829 3,746 28.9% 896.8 695.6 28.9% EBITDA 293 302 -3.1% 54.3 56.0 -3.1% EBITDA Margins (%) 6.1% 8.1% 6.1% 8.1% Finance Costs 137 119 15.8% 25.5 22.0

  45. Slide 45: Consolidated Balance Sheet - Dec 12 end

    Consolidated Balance Sheet - Dec 12 end Value Particulars ` crore $ million Net Worth 1,166 217 Gross Debt 2,021 375 Deferred Tax Liability (Net) 53 10 Total 3,240 602 Net Fixed Assets (Including Goodwill) 1,342 249 Receivables 3,297 612 Other assets (Current / Non Current) 1,593 296 Gross Working C

  46. Slide 46: Sales Growth – Continues to be good

    Sales Growth – Continues to be good Y-o-Y Growth – Previous 7 quarters – Over 20% 40.0% 36.3% 35.0% 32.7% 33.4% 32.1% 30.0% 26.3% 25.0% 23.1% Y-o-Y Growth (%) 20.9% 20.0% 15.0% 10.0% 5.0% 0.0% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 46

  47. Slide 47: Order Intake and Order Book – 9M FY13

    Order Intake and Order Book – 9M FY13 Order Intake Order Book ` 5,780 Cr. ` 10,150 Cr. ($ 1,073 mn) ` 9,200 Cr. ($ 1,885 mn) ($ 1,708 mn) ` 4,392 Cr. ($ 816 mn) 2,290 Q1 (` Crore) (` Crore) 2,383 Q3 1,470 Q2 855 Q2 2,020 1,154 Q1 Q1 9M FY12 9M FY13 9M FY12 9M FY13 47

  48. Slide 48: Summary

    Summary Strong industry fundamentals Experienced Diversified Management team Geographical presence Transforming Growing through good mix of organic into an EPC Leadership in Power and in-organic conglomerate Transmission EPC opportunities Growing presence in Financial Power Systems, performance – Ca

  49. Slide 49: THANK YOU

    THANK YOU Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com www.kecrpg.com

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