Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — Investor Presentation (November 2015)
32 slides from Va Tech Wabag's investor presentation, November 2015
Slide 1: Investor Presentation
Investor Presentation VA TECH WABAG November 2015
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by VA TECH WABAG LIMITED (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Business Overview
Business Overview BATNA Waste Water Treatment Plant, ALGERIA 3
Slide 4: Complete Water Treatment Solution Provider
Complete Water Treatment Solution Provider… Provides a complete range of Water and Waste Water Treatment solutions Offering spanning across Municipal Drinking Water, Municipal Sewage, Industrial Water, Industrial Effluents, Desalination and Recycle Technology focused company - Owns more than 1
Slide 5: Offering a complete range of solutions across project lifecycle
Offering a complete range of solutions across project lifecycle Pureplay water company Design Catering to both Municipal & O&M Procure- Industrial customers ment Offerings span across segments of water treatment Commiss- Construction ioning Range of services from Installation concept / desig
Slide 6: Led by ambitious professionals
Led by ambitious professionals Independent Directors Promoter Group B D Narang – Non Executive Chairman of the Board Rajiv Mittal (Promoter) – Managing Director & Group CEO Veteran Banker with over 32 years of banking experience who retired Visionary, entrepreneur & a sound water technologist ha
Slide 7: Led by ambitious professionals
Led by ambitious professionals Parthasarathy Gopalan –Group CFO Patrick Andrade – Chief Operating Officer – India Cluster 23 years experience across three diverse organizations including 13 Water technologist with 30 Years of experience in the Industry; years in Ford Motor company as CFO & Direc
Slide 8: Management Buyout followed by Acquisition of erstwhile Parent
Management Buyout followed by Acquisition of erstwhile Parent… Austrian Group Siemens VA Tech Wabag (India) VA Tech acquired VA listed on NSE & BSE acquired Tech Group “Wabag” part of 2010 Business from (Oct) DB in 1999 VA Tech Wabag Held by (Austria) 2007 Deutsche Babcock (DB) 2005 Group VA Tech Wa
Slide 9: Strengthen the Positioning in Water Treatment Sector
… Strengthen the Positioning in Water Treatment Sector Wabag Austria acquisition brought along… …. facilitated to Achieve Technical Know-how – Access to over 100 Patents & Experienced Manpower Growth in India Business Revenue grew around 4 times From Rs. 332 Crs to Rs. 1,220 Crs Perennial Rights to
Slide 10: Current Business Structure
Current Business Structure VA Tech WABAG WABAG INDIA WABAG Austria Domestic Business International Business International Business Exports European Countries Austria Czech Republic Desalination Sri Lanka Indonesia Switzerland Romania Tanzania Turkey Municipal Subsidiaries Sub Saharan / North African
Slide 11: Our Key Strengths
Our Key Strengths 100 MLD Desalination Plant, Chennai, INDIA 11
Slide 12: Use of Advanced Technology & R&D
Use of Advanced Technology & R&D… High quality treated water – Advanced Technology & Patented Products/Processes Technology is the deciding factor Biological Sludge Anaerobic Aerobic Coagulation Flocculation Treatment Digestion Treatment Alternate Demine- Reverse Source of Complex Disinfection Filtr
Slide 13: Asset Light Business Model
Asset Light Business Model Design Civil Operation & Technology Construction & Engineering (Outsourced) Maintenance Critical for cost In-house to ensure Mostly outsourced to In-house to ensure optimization compliance with designs dedicated Contractors quality performance ― Combination of ― Hi
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Waste Water Treatment Plant, Turkey 14
Slide 15: Yearly Order Intake
Yearly Order Intake 3,354 2,977 Focused approach leads to securing good orders in 2,155 Challenging market 1,802 1,774 Diversified presence helped in mitigating geo-political risks Euro depreciation has led to lower Order intake number than guidance FY 11 FY 12 FY 13 FY 14 FY 15 Rs. Crs. 15
Slide 16: Robust Revenue Growth
Robust Revenue Growth 2,428 2,239 Achieved Forecasted revenue on local currency terms 1,619 1,447 Euro depreciation 1,224 has led to lower revenue in INR terms due to translation Postponement of Order Intake led to reduction in Book & Bill revenue FY 11 FY 12 FY 13 FY 14 FY 15 Rs. Crs. 16
Slide 17: Working Capital Cycle
Working Capital Cycle • Why are the Receivables & Clients 5 Payables higher on 1 Balance Sheet date? Receives Payment based on vendor Places an Order as contracted Raise Invoice – invoice Q4 generally accounts for term 40-45% of annual turnover 4 – Invoice raised & recognized as Revenue that appear
Slide 18: Annual Guidance
Annual Guidance FY 2014 [INR Bn.] FY 2015 [INR Bn.] 33.5 32.0 29.8 26.0 26.0 22.3 24.0 Guidance 19.0 Achievement Revenue Order Intake Revenue Order Intake Guidance for FY 16 Revenue : INR 28 – 30 Bn. & Order Intake : INR 35 – 37 Bn. 18
Slide 19: Dividend Pay-out
Adjusted for Share Split in FY 2011 Dividend Pay-out Adjusted for Bonus Issue of 1:1 in FY 2015 EPS DPS 21 20 17 14 11 3 3.5 4 4 2 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Earning Per Share 11 14 17 21 20 (Rs.) Dividend Per Share 2 3 3.5 4 4 (Rs.) Dividend Payout 19 % 21 % 21 % 19% 20% 19
Slide 20: Strategic Geographical Spread
Strategic Geographical Spread Middle East Europe • >50% of Desal market in Saudi • R&D Centre – over 100 patents • High potential for advanced • Low working capital technologies • References for global business • Competitiveness through Indian • Technology Centre for advanced support technologies in
Slide 21: Q2 & H1 Performance
Q2 & H1 Performance 21
Slide 22: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss INR Millions Q2 FY16 Q2 FY 15 YoY % H1 FY16 H1 FY 15 YoY % FY15 Good opening backlog and Income 3,245 2,339 38.8% 5,784 3,590 61.1% 12,201 increased focus on project execution Other Operating has resulted in growth of Sales and 31 22 40.8% 58 66 -12.1%
Slide 23: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss INR Millions Q2 FY16 Q2FY 15 YoY % H1 FY16 H1 FY 15 YoY % FY15 Euro depreciation of 12%, delay in Nepal project due to local Income 6,014 5,061 18.8% 10,571 9,042 16.9% 24,284 conditions, Oman project nearing completion, many overseas projects Other
Slide 24: Results Overview – Balance Sheet
RESULTS OVERVIEW – Balance Sheet Rs. Millions Sep’15 Mar ’15 Sep’15 Mar ’15 Consolidated Standalone Exchange rate for B/S used for Sep 15 (74.45) had 10% Net Worth 9,275 9,026 7,298 6,862 increase over PY Mar 15 (67.93) rate. Minority Interest 72 49 - - Non-Current Liabilities 2,518 3,117 1,715 2,
Slide 25: Results Overview – Working Capital Highlights
RESULTS OVERVIEW – Working Capital Highlights Rs. Millions Sep ’15 Mar ’15 Current Investments 200 350 Inventories 682 470 Trade Receivables 15,785 14,807 Company resorted to use its cash in Balance Sheet for Loans and Advances 1,666 1,063 Speedier execution as sub- Cash & Bank Balances 2,094 3,11
Slide 26: Revenue Breakup – H1 FY16
Revenue Breakup – H1 FY16 EPC O&M INR Millions EPC O&M Total Municipal Industrial Municipal Industrial 26% Wabag India 1,820 2,955 827 182 5,784 74% Wabag Overseas 1,949 1,135 1,318 385 4,787 Total 3,769 4,090 2,145 567 10,571 Municipal Industrial 44% 56% EPC [Rs. Bn.] O&M [Rs. Bn.] 7.9 India Europe
Slide 27: Key Projects contributing to Revenue – H1 FY16
Key Projects contributing to Revenue – H1 FY 16 Revenue recognized Project Details [INR Mn] APGENCO – BOP with Water management 1,819 Petronas RAPID ETP, Malaysia 746 Istanbul, Turkey O&M 712 Nemmeli 100 MLD Desal – O&M, Chennai 431 DAWASA, Tanzania – 130 MLD WTP 366 Dangote, Nigeria – 6
Slide 28: Order Book Analysis – H1 FY16
Order Book Analysis – H1 FY16 28
Slide 29: Order Intake Breakup – H1 FY16
Order Intake Breakup – H1 FY16 EPC O&M INR Millions EPC O&M Total 7% Municipal Industrial Municipal Industrial Wabag India 6,070 8,088 1,437 106 15,701 93% Wabag Overseas 3,918 10,466 526 193 15,103 Municipal Industrial Total 9,988 18,554 1,963 299 30,804 39% 61% Key Order Received in Q2 Order Value
Slide 30: Order Book Composition – H1 FY16
Order Book Composition – H1 FY16 EPC O&M Rs. Millions EPC O&M Total 20% Municipal Industrial Municipal Industrial Wabag India* 15,312 15,324 10,996 269 41,901 80% Wabag Overseas 15,333 10,516 2,074 933 28,856 Municipal Industrial Framework 15,420 Contracts 38% Total 30,645 25,840 13,070 1,202 86,177
Slide 31: Order Book of Rs. 70.8 Bn & Framework Contracts of Rs. 15.4 Bn
Order Book of Rs. 70.8 Bn & Framework Contracts of Rs. 15.4 Bn Key Contracts in Order book Key Framework Contracts * Project Details Amt [Rs. Mn] Libya STP of Rs. 6,114 mn • Petronas RAPID ETP, Malaysia 13,450 5,877 Tobruk, Libya Desal of Rs. 1,181 mn • AMAS, Bahrain – 40 MLD STP • APGENCO – BOP
Slide 32: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : VA Tech Wabag Ltd. Stellar IR Advisors Pvt. Ltd. CIN - L45205TN1995PLC030231 CIN - U74900MH2014PTC259212 Mr. Parthasarathy G, Chief Financial Officer / Mr. Rajiv Balakrishnan, DGM IR Mr. Gaurang Vasani, Managing Director
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