Kec International Ltd. · NSE:KEC
Kec International — RPG Annual Investor Conference 2021
47 slides from Kec International's conference presentation, Jun 14, 2021
Slide 1: Exchange filing cover letter for investor presentation
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 www.kecrpg.com June 14, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra (East), Mumbai - 400 051 M
Slide 2: KEC International Limited – RPG Annual Investor Conference
KEC International Limited RPG Annual Investor Conference Investor Presentation 16 June 2021 Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines
Slide 3: 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,
Slide 4: Contents
CONTENTS KEC International – Overview and Journey Business Highlights ESG Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 3
Slide 5: Building Infrastructure for the World of Tomorrow
Building Infrastructure for the World of Tomorrow Transmission & Civil & Distribution Urban Infrastructure 1.8 bn 100+ 250+ Global EPC Footprint in Ongoing Major countries projects 7+ 40% Decades of 9,000+ Overseas Employees Experience Business Railways Cables Solar Smart Infra Oil & Gas Pipelines
Slide 6: Delivering Outperformance
Delivering Outperformance Revenue (₹ Crore) PAT (₹ Crore) & PAT % CAGR 9% 13,114 CAGR 30% 11,965 4.6% 4.5% 4.7% 4.2% 11,001 10,091 3.5% 8,710 8,755 496 566 553 460 1.7% 305 148 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Revenue CAGR growth of 9% and PAT CAGR growth of 30% over las
Slide 7: Financial Strength – Resilient Balance Sheet
Financial Strength – Resilient Balance Sheet Net Worth (₹ Crore) & Net Debt to Equity (times) Interest (₹ Crore) & (% to Revenue) 3,360 3.2% 2.4 2,798 2.9% 2,435 2.8% 2.6% 1,997 1,586 2.3% 1,290 1.2 312 308 279 254 263 229 0.8 0.8 2.0% 0.6 0.5 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 F
Slide 8: Leading Value Creation
Leading Value Creation KEC : 122 KEC : 410 BSE Sensex : 25,342 KEC BSE Sensex BSE Midcap BSE Sensex : 49,509 BSE Midcap : 10,619 BSE Midcap : 20,181 KEC 236%+ BSE Sensex 95%+ BSE Midcap 90%+ Rebased to 100 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Market Capitalization Dividend His
Slide 9: Strategic Pillars
Strategic Pillars De-risking Capital & Efficiency Diversification Robust Execution Asset Light Capabilities Sustainable Variable Business Cost Model Operations
Slide 10: Key Strategic Achievements
Key Strategic Achievements Non T&D OB Share 42% T&D business diversified across Strategic shift in portfolio from T&D to 13% countries – Successfully entered Non T&D ~20 countries in last 5 years FY16 FY21 Railways delivered Revenue CAGR Transformed Railway business from a growth of ~75% over last 5
Slide 11: Where are we Today?
Where are we Today? Tenders under Evaluation and Tenders in Robust Order Pipeline of Rs. Book and L1 65,000 Cr+ Position of Rs. YTD FY22 Order 25,000 Cr+ Intake of ~Rs. (T&D 55%; Non 2,000 Cr T&D 45%) All 8 Significant focus manufacturing on Productivity - units and 240+ Digitalisation, project site
Slide 12: Key Trends in Infrastructure Sector
Key Trends in Infrastructure Sector TAILWINDS HEADWINDS • Significant focus on infrastructure in Union • COVID-19 Budget - National Infrastructure Plan of Rs. 111 lakh crore with huge investments in Energy, Urban o Localised lockdowns impacting execution Infrastructure, Railways, Water, Airports o D
Slide 13: Our Aspirations
Our Aspirations Profitable Growth through focused Business & Geographical Diversification Strengthening Balance Sheet through Sustained Cash Flow Generation Embedding sustainable practices towards Environment, Safety & Governance Building a World - Class Engineering Organisation Sustained focus on N
Slide 14: Contents
CONTENTS KEC International – Overview and Journey Business Highlights ESG Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 13
Slide 15: Transmission & Distribution – Building Icons of Power
Transmission & Distribution – Building Icons of Power • Largest T&D player in South Asia - ~ 15% Market share in India - ~ 20% Market share in SAARC • Large presence in Middle East, Africa, Americas, East Asia Pacific and CIS • Secured significant orders of ~Rs. 7,500 Cr in FY21 – Growth of 1.8 time
Slide 16: Substation capabilities and projects
765 kV GIS at Orai, Uttar Pradesh • Developed significant capabilities for accelerated execution of Substation projects • Widened substation portfolio with orders of ~Rs. 1,300 Cr • Delivering 40+ GIS and AIS Substation projects 15
Slide 17: India
India • Secured significant orders of ~Rs. 1,500 Cr in the Green Energy Corridor projects in India • Resumption of Essel/WKTL project • Large client base – PGCIL, Private and multiple State utilities across the country Power Grid Substation in Koteshwar- 765kV GIS Substation • Largest Substation bui
Slide 18: SAARC
SAARC • Presence across Bangladesh, Afghanistan, Nepal, Bhutan and Sri Lanka • Revenue Growth of over 3x in last 3 years 220 kV New Khimti Gas Insulated Substation, Nepal 17
Slide 19: Middle East
Middle East • Strong presence across Dubai, Abu Dhabi, Saudi, and Oman • Significant traction in orders - Scaled up order book significantly with large orders in Oman in FY21 • Robust Tender pipeline • Leveraging Dubai facility to re-establish MENA as major growth driver 400 kV Overhead Transmission
Slide 20: Africa
Africa • Diversified presence in over 15 countries in Africa • Established presence in West Africa – Entered Senegal, Ghana, Guinea, Ivory Coast, Mali, Sierra Leone, Burundi, Burkina Faso and Togo in recent years • Secured significant orders in Mozambique in FY21 400 kV Air Insulated Substation, Tan
Slide 21: East Asia Pacific
East Asia Pacific • Presence across Thailand, Malaysia, Indonesia and Phillipines • Strengthened substation profile with orders of ~Rs. 500 Cr 500 kV Pluak Daeng Substation, Thailand 20
Slide 22: Americas
Americas • Headwinds due to delay in EPC projects primarily driven by COVID pandemic • Secured 3 new EPC projects in FY21 including the first substation order • Currently executing 6 EPC projects 500 kV Sapeaçu - Poções III Transmission Line, BTG Lot 1, Brazil 21
Slide 23: Transmission Tower manufacturing facility in Dubai commissioned
Transmission Tower manufacturing facility in Dubai commissioned • State-of-the-art automated transmission tower manufacturing facility in mainland Dubai; Name plate capacity - 50,000 tonnes / annum • Enhances credentials to expand our business in the MENA region on account of local price preferences
Slide 24: Railways – Major Growth Driver
Railways – Major Growth Driver • Revenue growth from Rs. 210 Cr to Rs. 3,409 Cr in last 5 years (CAGR 75%) • Commissioned 11 projects in FY21 – All ahead of schedule • Currently executing 50+ projects across India Track works over Mahanadi River, Kendrapara - Paradeep, Odisha 23
Slide 25: Expansion in Areas of Growth
Expansion in Areas of Growth FY17 UEOB + L1 of ~Rs. 1,500 Cr Current UEOB + L1 of ~Rs. 7,000 Cr OHE 2% 18% Composite OHE 32% 34% Civil Composite 21% Technology Civil 64% 7% Others (Tunnel Ventilation, Speed Upgradation) 11% 10% L1 ✓ Diversified in technologically enabled areas of OHE, Third rail & B
Slide 26: Largest contributors to Indian Railways Electrification Mission
Largest contributors to Indian Railways Electrification Mission - Electrified ~22% of the Indian Railway Network in FY21 Electrification, track and station works at Amethi, Uttar Pradesh 25
Slide 27: Diversified portfolio: Doubling, Tripling and New Railway lines
Diversified portfolio to include Doubling, Tripling and New Railway lines Track commissioning of 171 RKM (26% of total commissioning by RVNL) Construction of 3rd line between Gudur-Bitragunta, Andhra Pradesh 26
Slide 28: Deepening capabilities in Civil infrastructure
Deepening capabilities in Civil infrastructure such as bridges, platforms, stations & workshops Inaugurated by Hon'ble PM Shri Narendra Modi Jhargram Station, part of the 3rd line between Kalaikunda & Jhargram, West Bengal for RVNL 27
Slide 29: Civil – Scaling newer Heights
Civil – Scaling newer Heights Industrial & Hydrocarbon Residential & Public Spaces Industrial Plants, Hydrocarbon & Revenue of Residential Airports, Malls & Factories & FGD Warehouses Rs. 1,080 Cr Buildings Hospitals - Exemplary growth of ~3 Defence & Data Centres Urban Infrastructure & Water times
Slide 30: Significant Presence in Auto sector
Significant Presence in Auto sector Hero MotoCorp - Gujarat KIA Motors - Andhra Pradesh Volkswagen - Pune Ashok Leyland - Andhra Pradesh CEAT - Chennai
Slide 31: Preferred Contractor in Cement sector
Preferred Contractor in Cement sector Silo construction–Height of 53m Cement Mill – Weight 1,050 MT Preheater – 132 m Clientele: Ultratech, Wonder Cement, JK Cement, Prism Cement, RCCPL – Birla Corp, Lafarge, ACC Ambuja
Slide 32: Strengthening presence in Residential
Strengthening presence in Residential Currently executing prestigious projects in Residential for marquee builders such as Godrej and Prestige Godrej 24, Bangalore Prestige Ocean Crest, Goa Godrej Lakeside, Bangalore Godrej Hillside, Pune Godrej Reflections, Bangalore RNA Developers Silver Spring, M
Slide 33: Built Capabilities for Heavy Mechanical Works
Built Capabilities for Heavy Mechanical Works Grinding table erected in single lift with Fly Ash Silo Roof Top Structure Wagon Tippler 450T crawler crane erection - Structure pre- assembled at ground and lifted in single piece with 250T crawler crane Capacity – 350 TPH, Weight – 1,150 MT Stacker Rec
Slide 34: Urban Infrastructure – Building a Progressive India
Urban Infrastructure – Building a Progressive India • Entered the league of select EPC players capable of executing large, complex and technologically intensive urban infra projects • Currently executing 6 large projects in Urban infra • Continuing to build people, assets and technology capabilities
Slide 35: Piling works at Yamuna river, Delhi metro DMRC Project
Piling works at Yamuna river, Delhi metro DMRC Project 34
Slide 36: Girder lifting at Delhi metro DMRC Project
Girder lifting (160MT) at Delhi metro DMRC Project 35
Slide 37: Kochi Metro River Over Bridge and Viaduct
River Over Bridge – Kochi Metro Construction of Viaduct – Kochi Metro 36
Slide 38: Delhi-Meerut RRTS project
Delhi-Meerut Regional Rapid Transport System (RRTS) project 37
Slide 39: Solar – Enabling a Green Future
Solar – Enabling a Green Future • Capabilities to execute large scale projects >150 MW • Executing a 20 MW Solar carport for a reputed automobile manufacturer, which is one of the largest carport projects in India • Building partnerships with Global Developers both for Domestic and International mar
Slide 40: Other Businesses: Cables, Smart Infra, Oil & Gas Pipelines
Other Businesses Cables Smart Infra Oil & Gas Pipelines Command and Control centre, Cables manufacturing plant at Mysore Aurangabad smart city project Image for Representative purpose only • New Product Development – • Existing projects of Bidkin and • 800 – 1,000 km of crude and Significant focus o
Slide 41: Contents
CONTENTS KEC International – Overview and Journey Business Highlights ESG Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 40
Slide 42: Our ESG Framework
Our ESG Framework KEC is committed to delivering excellence and outperformance with unwavering focus on embedding sustainable practices towards improving Environment, Society, Safety and Governance Strategic ESG Pillars ESG Focus Areas Human Capital Diversity & Unleash Enabling environment for peopl
Slide 43: Strong Commitment to ESG
Strong Commitment to ESG Environment Social Governance • Sustainable Waste • Robust EHS policy • Independent Board Management (Zero waste to landfill by 2026) • Human Capital Management • Segregated roles of Chairman & MD • Optimize Material • Employees Happiness Consumption Quotient • No Promoter S
Slide 44: Key Societal Initiatives during COVID
Key Societal Initiatives during COVID Launched a 36-bed Quarantine Centre at our training 1 centre in Butibori for COVID-19 patients; first Quarantine Centre in Butibori Industrial Area Donating 25 Oxygen Concentrators to COVID Care centres 2 in government hospitals, police hospitals and social serv
Slide 45: Contents
CONTENTS KEC International – Overview and Journey Business Highlights ESG Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 44
Slide 46: Way Forward
Way Forward Growth Drivers RAILWAYS CIVIL TRANSMISSION & DISTRIBUTION • Technologically • Urban Infra • SAARC – Bangladesh enabled/ emerging • New areas – Water, & Nepal areas in Metros Warehouses, Data • MENA – Oman, Saudi, • Conventional Centres, Hydrocarbon, UAE (Dubai & Abu Railways Hospitals, e
Slide 47: Thank You
THANK YOU Global Footprint in 100 countries* *Includes EPC and Supply Follow us on: 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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