KEC International Ltd. · NSE:KEC
KEC International — RPG Annual Investor Conference 2015
48 slides from KEC International's conference presentation, Jun 8, 2015
Slide 1: Annual Investor Conference 2015
ANNUAL INVESTOR CONFERENCE 2015 8th June 2015, Mumbai
Slide 2: KEC International Limited
KEC International Limited A 1.3 BILLION DOLLAR GLOBAL INFRASTRUCTURE EPC MAJOR
Slide 3: A $1.4 billion Infrastructure EPC Major
A $1.4 billion Infrastructure EPC Major KEC executed one of the most prestigious river crossing projects in West Bengal involving tower construction in mid river and along the shore. The height of individual river crossing tower is 775 feet which is about 75% of the height Eiffel Tower 3
Slide 4: A landmark project for KEC, 765 GIS at Thiruvalam
A landmark project for KEC, 765 GIS at Thiruvalam, South India Among the First few in India! 4
Slide 5: An Indian Multinational Infrastructure EPC Major
AN INDIAN MULTINATIONAL INFRASTRUCTURE EPC MAJOR EPC MAJOR BUSINESS PORTFOLIO MULTI-LOCATIONAL MANUFACTURING An Indian multinational Infra EPC Leader in Power major Transmission EPC 8 Manufacturing facilities Flagship company of the RPG group Growing presence in across India, Brazil and Mexico Power
Slide 6: Performance Highlights – FY15
PERFORMANCE HIGHLIGHTS – FY15 FINANCIAL HIGHLIGHTS Sales for the year increased by 7.2% to Rs 8,468 cr. EBITDA is at Rs. 512 cr an increase of 3.8% Y-O-Y Order intake is at 8223 cr which is spread across all the businesses and geographies Robust order book of Rs 10,370 cr. BUSINESS HIGHLIGHT
Slide 7: Growth Enablers - Infrastructure Sector
GROWTH ENABLERS - INFRASTRUCTURE SECTOR ABILITY OF CITIZENS TO PAY Growing middle class population Focus on better quality of life GROWTH ENABLERS - INFRASTRUCTURE SECTOR GOVERNMENT POLICIES FUNDING AVAILABILITY Land acquisition and Right of Way Multilateral agencies funding (JICA, AfDB, EBR
Slide 8: Growth Enablers - KEC
GROWTH ENABLERS - KEC STRONG INDUSTRY FUNDAMENTALS Power, Railways and Water: Basic infrastructure needs for economic development and key focus areas of new Government Each of our business has large global potential GROWTH ENABLERS - KEC STRONG BALANCE SHEET DIVERSIFIED PRESENCE Superior worki
Slide 9: KEC – Strategy
KEC – STRATEGY CORPORATE Focus on margin improvement ; closure of legacy projects Robust risk management Strengthen processes: Move from people driven to system driven co. M&A: Proven track record; look for opportunistic acquisition Consolidate and grow presence in existing businesses STRA
Slide 10: To Sum Up..
TO SUM UP.. KEC HAS ALL THE KEY ENABLERS AND STRATEGIES IN PLACE TO CAPTURE THE GROWTH OPPORTUNITIES IN THE MULTI-BILLION DOLLAR GROWING INFRASTRUCTURE SECTOR 10
Slide 11: Official Strategic Timeout Partner
OFFICIAL STRATEGIC TIMEOUT PARTNER
Slide 12: CEAT Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 3500+ dealers, 300+ exclusive CEAT franchisees 3 Manufacturing facilities - Bhandup, Nasik & Halol 90 countries where products are sold #No 1 player in Sri Lanka in terms of market share Breakup by Product Brea
Slide 13: Strong OEM Presence
Strong OEM Presence °”* © @D Qa € TATA Ashok Leyland Mahindra ESCORTS MOTORS = VE COMMERCIAL VEHICLES = = AMW TAFE ¥ : AVELVOGAOUS ANS EIOLEH MGTORE JONTS VENTURE : WES @e mn... @D & MARUTI : . SUZUKI TATA : TE ies, MOTORS © sila RENAULT : FORCE YAMAHA 13
Slide 14: Strategic Drivers
Strategic Drivers Strong Brand Recall Passenger Distribution Network segment1 OEM relationships Profitable Emerging Proven Model in Sri Lanka growth markets Replicate in Bangladesh Competitive Advantage Exports CEAT Global Brand Note 1. Consists of Two Wheeler, Passenger Cars and Utili
Slide 15: Passenger Segment: Creating Strong Brand Equity
Passenger Segment: Creating Strong Brand Equity “Be Idiot Safe” “Tubeless Bike tyre” 15
Slide 16: Passenger Segment: Pan India Distribution Network
Passenger Segment: Pan India Distribution Network Distribution Network 3500+ dealers 300+ CEAT Franchisees (Shops + Hubs) 250+ two-wheeler distributors No. of CEAT Shops No. of district coverage 176 464 102 212 FY12 FY15 FY12 FY15 16
Slide 17: Passenger Segment: Pan India Distribution Network
Passenger Segment: Pan India Distribution Network Multi Brand Outlet (MBO) Shop in Shop (SIS) New distribution model Developed MBO / SIS model in the last 2 years Over 250 outlets so far 17
Slide 18: Passenger Segment: Increasing OEM Presence
Passenger Segment: Increasing OEM Presence Recent additions Motorcycle radial tyres in Fuel efficient tyres Scooter tyres premium bike model with Kwid model Increased share of business with mainly passenger car OEMs Strengthened relationships with Entered into new models with existing OEMs exist
Slide 19: Passenger Segment: Investing in Research & Development
Passenger Segment: Investing in Research & Development State of the art R&D facility set up in Halol plant in 2011 Recent Product Launches Introduced around 100 new products/ variants in FY15 – Indian Design Mark Award recipient – Motorcycle radial tyres in premium bike models CZAR GRIPP – Low r
Slide 20: Passenger Segment: Performance
Passenger Segment: Performance Motorcycles (Rs Cr) 1,259 PC / UV (Rs Cr) 567 476 899 Revenue 376 639 284 525 363 146 FY 11 FY 12 FY13 FY 14 FY 15 FY 11 FY 12 FY13 FY 14 FY 15 Brand OEM Distribution R&D 2x expansion in 2/3 wheeler and 2.5x expansion in PCR / UCR Capacity segment from the existing c
Slide 21: Emerging Markets: Performance
Emerging Markets : Performance Revenue EBITDA1 (SLR mn) & 4,88 (SLR mn) EBITDA EBITDA Margin (%) 12.2% 20.1% 983 1,92 9 Margin 687 12% 17% 20% 4 23% 4,35 4,889 532 1,07 4,729 1 1,090 7 983 316 4,553 759 4,357 532 Sri Lanka FY'12 FY'14 FY'12 FY'14 FY'12 FY'14 FY'12 FY'14 FY12 FY13 FY14 FY15 FY12 FY13
Slide 22: Export Market: Performance
Export Market : Performance Exports trend FY15 Export sales break-up 1,091 Others, 12% 1,074 997 978 Middle East, 29% South America, 618 17% 477 Africa, 18% South East FY10 FY11 FY12 FY13 FY14 FY 15 Asia, 24% Exports (Rs Cr) Improved market share from last year 22
Slide 23: CEAT: Growing Profitable Market and Product Mix
CEAT: Growing Profitable Market and Product Mix 5 yr CAGR % 15% Sales (Rs Cr) 2,850 5,508 5,755 Passenger Segment, “Strategic Focus Areas” 33% Emerging 25% Markets & 48% 52% Exports Higher margin business Contributes 52% sales for FY15 compared to Others 67% 33% in FY10 52% 48% Growing at high
Slide 24: Zensar Technologies
Zensar Technologies 2 www.zensar.com | © Zensar Technologies 2015-16 4
Slide 25: Zensar at a Glance
Zensar at a Glance 2,628 Cr* 265 Cr* 22.5% FY15 Revenue FY15 PAT Revenue CAGR over the past 5 years 220+ 8,174 Annuity customers Employees 29 13% Global Overall Attrition locations Best in Industry Acquired in August 2014 *in INR www.zensar.com | © Zensar Technologies 2015-16 25
Slide 26: The year that was…
The year that was… INR Cr FY15 FY14 13.5% YoY Revenue 2,628 2,316 growth Gross 779 720 Margin 29.6% 31.1% 364 340 EBITDA 13.9% 14.7% Double-digit 265 238 PAT profitability 10.1% 10.3% continued 26 www.zensar.com | © Zensar Technologies 2015-16 26
Slide 27: Client Mix
Client Mix Conscious efforts to increase deal size resulting in increased ‘Million Dollar’ customers Million Dollar Clients FY15 Million Dollar Clients trend 75 75 20 Mn Dollar+ 1 CAGR: 36.9% 10 Mn Dollar+ 3 60 52 5 Mn Dollar+ 9 45 40 1 Mn Dollar+ 75 30 FY13 FY14 FY15 Healthy pipeline of US$ 600 Mn+
Slide 28: Focus on Digital
Focus on Digital Partners for Digital Cloud Enhanced focus on ‘Digital Transformation’ led deals Digitization of Digital Revenue Contribution Records through Social 20% Crowdsourcing 16% 13% 5% Cloud based PaaS Solution for Government and Business with FY14 FY15 FY16E FY17E Analytics high volume doc
Slide 29: PA Acquisition – Strengthened Retail Vertical
PA Acquisition – Strengthened Retail Vertical ATG is the ‘e-Commerce Strengthens the digital and platform of choice’ for ecommerce capability and retail and amongst top 2 puts Zensar at forefront for commercial platforms Omni-Present commerce PA is amongst the ‘top 3 Makes Zensar the ‘Top Oracle ATG
Slide 30: 3x3x3 Focus
3x3x3 Focus Industry Manufacturing Retail Insurance Geographical USA Europe Africa Segment Service Application Infrastructure Digital offering Management Management Enterprise www.zensar.com | © Zensar Technologies 2015-16 30
Slide 31: Strategic Objectives - FY18
Strategic Objectives - FY18 Retail and Ecommerce Revenue 25% of Zensar Revenue Digital revenue to be more than 20% of Zensar Revenue by FY18 Infrastructure Business to deliver over 10% EBITDA Double Digit annual growth in Revenue and PBT for all business units People Continued Focus on Tri
Slide 32: Overview on Group Financials
Overview on Group Financials
Slide 33: RPG Group: Business Portfolio
RPG Group: Business Portfolio USD 3 bn Global & diversified Indian business group Presence in key sectors of economy Global presence in over 100 countries Employee strength of over 20,000 across geographies TYRE INFRASTRUCTURE Global business of around 50% PHARMA PLANTATIONS POWER / TELECOM IT
Slide 34: RPG Group: Vision
RPG Group: Vision We shall be a leading Indian group with a focus on market capitalization through: Leadership in profitability and Being a customer - revenue growth in our chosen centric organization businesses Being the most exciting workplace 34
Slide 35: RPG Group: Values
RPG Group: Values Customer Organization’s responsiveness to the need of the customer Sovereignty Ability to deliver more than what the customer wants and expects People Organization’s responsiveness to the needs of its employees Orientation Commitment to treat all employees fairly and to pro
Slide 36: RPG Group: Values
RPG Group: Values Transparency & Standards of ethics which are in place and are practised. Integrity Organization’s openness and honesty in dealings with employees and other stakeholders Organization’s ability to foresee or anticipate business Anticipation, opportunities or threats Speed & Fle
Slide 37: RPG Group: Governance Structure
RPG Group: Governance Structure Management Board Members (MBM) Members : Chairman, CEOs, Group HR & Group Finance Purpose : Group level strategy decisions Company Board of Directors Members : Chairman, MD & Independent Directors who are experts in various fields Purpose : Company specific st
Slide 38: RPG Group: Corporate Social Responsibility
RPG Group: Corporate Social Responsibility Flagship program of RPG focusing on Preventive, Promotive , Rehabilitative and Curative Eye Care interventions ranging from children to elderly. NETRANJALI Program seeks to address the social need gap by imparting practical English fluency, both spoken and
Slide 39: RPG Group: Corporate Social Responsibility
RPG Group: Corporate Social Responsibility An integrated community project focusing on improving all round quality of life in the areas of clean drinking water, overall health and nutrition based interventions amongst others. The National Digital Literacy Mission (‘NDLM’) has a vision to empower at
Slide 40: RPG Group: Key Financials
RPG Group: Key Financials Net Revenue (Rs Cr) EBITDA (Rs Cr) EBITDA / Interest EBITDA % 18,593 17,614 1,690 1,732 15,788 13,944 1,250 1,121 10,839 943 9.6 9.3 8.7 8.0 7.9 3.6 3.5 3.6 2.8 2.9 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 PAT (Rs Cr) 795 714 423 429 404 FY11 FY12 FY13 FY14 FY15 No
Slide 41: RPG Group: Key Financials
RPG Group: Key Financials Net Worth (Rs Cr) ROCE ROE 4,699 Net Debt Net D/E (x) Net Debt / EBITDA 3,284 3,933 2,836 2,830 2,648 2,705 3,302 2,974 2.8 2,646 20% 18% 2.4 2.3 17% 15% 1.9 13% 1.6 13% 13% 1.0 11% 11% 11% 0.9 0.9 0.8 0.6 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Net Block (Rs Cr)
Slide 42: RPG Group: Market cap movements
RPG Group: Market cap movements 10,323 RPG Group (Rs Cr) CEAT (Rs Cr) 3,144 5,392 1,585 ZENSAR (Rs Cr) 3,407 KEC (Rs Cr) 3,116 1,741 1,638 Note: Market cap updated till 31st May 2015 42
Slide 43: RPG Group: FY15 Revenue breakup
RPG Group: FY15 Revenue breakup CEAT 32% STSL ZENSAR HML 1% 14% 2% RPG LS 1% Speciality 8% RAYCHEM 4% KEC 46% Diversified group with core interests in Infra, Tyre, IT & Speciality 43
Slide 44: RPG Group: FY15 EBITDA breakup
RPG Group: FY15 EBITDA breakup ZENSAR HML 22% 1% CEAT 42% STSL 0% Speciality RPG LS 8% 1% RAYCHEM 5% KEC 29% 44
Slide 45: KEC International: Key Financials
KEC International: Key Financials Net Revenue (Rs Cr) 8,468 EBITDA (Rs Cr) EBITDA / Interest EBITDA % 7,902 10.6 493 512 6,979 477 471 8.0 5,876 381 6.2 6.0 5.5 4,483 4.1 3.0 2.0 1.9 1.7 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 24% Net Worth (Rs Cr) ROE Net Debt Net D/E (x) Net Debt / EBITD
Slide 46: CEAT: Key Financials
CEAT: Key Financials Net Revenue (Rs Cr) EBITDA (Rs Cr) EBITDA % EBITDA / Interest 5,802 11.8 11.7 5,554 5,052 4,675 681 8.7 658 3,631 5.9 438 4.5 274 165 5.2 3.8 2.4 1.6 1.4 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Net Worth (Rs Cr) ROE Net Debt Net D/E (x) Net Debt / EBITDA 30% 1,416 1,27
Slide 47: Zensar Technologies: Key Financials
ZENSAR Technologies: Key Financials Net Revenue (Rs Cr) 2,656 EBITDA (Rs Cr) EBITDA % EBITDA / Interest 2,335 392 2,128 358 43.6 1,794 303 249 34.8 35.1 1,153 30.5 168 26.6 15.3 14.7 14.6 13.9 14.2 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Net Worth (Rs Cr) ROE Net Debt Net D/E (x) Net Debt
Slide 48: Thank You
T H A N K Y O U
KEC International — RPG Annual Investor Conference 2015 on 6ix