Eki Energy Services Ltd. · BSE:EKI
Eki Energy Services — Q3 FY2023 Earnings Presentation
35 slides from Eki Energy Services's earnings presentation, Feb 10, 2023
Slide 1: Filing intimation letter to BSE
February 10, 2023 To, BSE Limited Corporate Relationship Department, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001. Scrip Code: 543284 Symbol: EKI Subject: Investor Presentation. Dear Sir(s), Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
Slide 2: EKI Energy Services Limited Investor Presentation – February 2023
CARBON NEUTRAL COMPANY EKI Energy Services Limited (Brand name- “EnKing International”) Investor Presentation – February 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by EKI ENERGY SERVICES 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 s
Slide 4: Contents
1 EKI Overview and Performance Contents 2 Financial Results Update 3 Key Strategic Initiatives 4 Future Outlook and Business Opportunities 5 ESG
Slide 5: EKI Overview and Performance
EKI Overview and Performance MARKET LEADER IN A GROWING MARKET
Slide 6: Our Vision
Our Vision Vision Statement of EKI 3,000+ Clients 40+ Countries Imagine a net zero world. A world where humanity has come together and defeated the climate crisis. 250+ Employees Where sustainability is prime consideration in all human activity. Where, through focused innovation, both technological
Slide 7: Our Growth Journey: Celebrating 14 Years of Success
Our Growth Journey: Celebrating 14 Years of Success 2022 2021 o First ever company to list a Plastic project 2019-20 o Listed on BSE (SME from India with Verra- a Segment) global accreditation o Sold 40M+ Credits 2017 in single financial o JV with Shell standard located in WA, Overseas USA o 5+ Mill
Slide 8: Our Business Process for Carbon Credit Development
Our Business Process for Carbon Credit Development Project Owner role including selection of EKI Validation + Registration Process Verification & Issuance Process Sale of Carbon Credits Client Selection of EKI Project Identification Selection of DOE for Documentation as per Approved Methodology Proj
Slide 9: Company Overview: A Truly Global Company With Leading Market Share
Company Overview: A Truly Global Company With Leading Market Share… Global Presence- EKI & our Client Leading market share … Norway Voluntary carbon credits UK Germany mobilized, MtCO2e1 Switzerland France Italy 493 Jordan Turkey UAE China USA Dom. Rep. India Ghana Egypt B’desh Mexico Thailand Vietn
Slide 10: …in a Growing Industry
…in a Growing Industry …and are expected to at least triple this decade, Carbon credits retirements have grown at a as more companies announce net-zero targets CAGR of 35% over the past 5 years… and compliance markets emerge Carbon credits retired, MtCO2e ~2,4001 175 +35% p.a 161 95 70 53 2018 2019
Slide 11: Our International Clients
Our International Clients World Bank Group International Monetary The United Nations Siemens AG, Germany Statkraft Energias Fund Office for Project Services Kenya State Electricity Shell, Singapore Volkswagen, Burgos Wind Farm, Bitexco Group Generation Company, Germany Philippines Kenya Pacific Ligh
Slide 12: Our National Private Clients
Our National Private Clients Indian Conglomerates MNCs with Indian presence 11
Slide 13: Our National PSU Clients
Our National PSU Clients NTPC NHPC Airports Authority of India Indore Smart City Development Oil and Natural Gas Corporation Gail Central Water & Power Research Ordnance Factory Board Balmar Lawrie & Co. Rajasthan State Mines and Station Minerals 12
Slide 14: Our Association and Empanelment
Our Association and Empanelment International partnerships provides us a platform for product innovation Carbon Markets Association of India Membership with IETA (International ASSOCHAM Global Gold Consultant of Carbon (CMAI) Emissions Trading Association) Disclosure Project (CDP) Membership with Co
Slide 15: Our Association and Empanelment (Cont'd)
Our Association and Empanelment (Cont’d) Services Exports Promotion Council RECS International I am SME of India BEE ESCO INDIA Solar Baba Turkey World Biogas Association Forum Energy Technology 14
Slide 16: Financial Results Update
FINANCIAL RESULTS UPDATE BALANCED ROADMAP FOCUSSING ON PLANET AND PROFITS
Slide 17: 9M & Q3 FY23 Financial Update
9M & Q3 FY23 Financial Update Revenue from Operations EBITDA & Margins PAT & Margins (₹ Cr) (₹ Cr) (₹ Cr) Rationale for Q3 performance 1,325 1,364 370 278 320 241 • Prolonged Ukraine War subduing economic growth and reducing discretionary 28% 23% 21% 18% expenditure • Anticipation of inflation and r
Slide 18: Standalone Financial Performance
Standalone Financial Performance Particulate (₹ Cr) 9M FY23 9M FY22 Y-o-Y Q3 FY23 Q3 FY22 Y-o-Y Revenue from Operations 1364.2 1324.6 3.0% 406.6 687.8 -40.9% Purchase of stock-in-trade 951.2 998.3 431.7 509.4 Changes in Inventories -64.0 -159.1 -118.0 -78.1 Employee Benefits Expense 37.0 17.2 12.2 8
Slide 19: Auditor's Statement on Recognition of Revenue
Auditor’s Statement on Recognition of Revenue Auditors Statement: “During the quarters ended 31 December 2022 and 30 September 2022, and nine-month period ended 31 December 2022, the Company has recognized revenue from contracts with certain customers as detailed in Note 3 to the accompanying Statem
Slide 20: Focused on Capital Efficiency
Focused on Capital Efficiency Return on Capital Employed (%) # Return on Equity (%) * Our growth is: Strategic: 236.7% 176.5% o Market intelligence based: 120.2% Actively managed credit 153.8% 112.7% 139.5% inventory based on demand and price outlook 53.1% 40.1% o Network and capability driven: Leve
Slide 21: Healthy Inventory and Broad Geographic Footprint of Sales
Healthy Inventory and Broad Geographic Footprint of Sales Stock in hand: ~14 Mn Credits (end of Q3 FY23) Geographic dispersion of Sales: ~55Mn Credits (YTD FY23) Split by number of credits Split by number of credits 1% 12% 20.0% Asia Technology-based Europe Forest-based 34% Australia 4.5% Energy Eff
Slide 22: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES BALANCED ROADMAP FOCUSSING ON PLANET AND PROFITS
Slide 23: Key Strategic Initiatives
Key Strategic Initiatives SATISFACTION AND SUSTAINABILITY 1. Addition of new clients & projects across the Globe With the acquisition of new talent pool and development of existing human KEY TO GROWTH capital, company is aiming to enter new geographies across the Globe, where it sees huge potential
Slide 24: 1. Addition of New Clients and Projects Across Globe
1. Addition of New Clients and Projects Across Globe We are present in 40+ countries around the globe In YTD FY23, projects were developed for the Existing projects (as of FY22) first time in Afghanistan, Argentina, Armenia, New projects (FY23 YTD) Azerbaijan, Botswana, Ghana, Macedonia, Existing Cl
Slide 25: 2. Strengthening Supply Chain: Backward Integration
2. Strengthening Supply Chain: Backward Integration WE ARE ONE OF THE LARGEST BIOMASS-BASED COOKSTOVE MANUFACTURER IN THE WORLD GHG REDUCTION TECHNOLOGIES PVT. LTD. Strengthening backward integration of carbon credit supply chain through community-based projects Started manufacturing cook stoves in
Slide 26: Robust Process for Execution of Community-based Projects
2. Strengthening Supply Chain: Robust Process For End-to-End Execution Of Community-based Projects (1) Monitoring Approach Illustrative evidences 1 Beneficiary data captured digitally: 1 2 Local stakeholder meeting o Identifiers incl. contact number, geo- coordinates, national ID, etc. captured dur
Slide 27: 3. Increasing Brand Presence Through 4-pronged Strategy
3. Increasing Brand Presence Through 4-pronged Strategy 1 Actively shaping the global agenda 2 Building regional networks 3 Sectoral outreach and relevance Participation and speaking opportunities at Participation in reputed events in key Engagement opportunities with target client segments key glob
Slide 28: 4. Focus On Corporate Governance
4. Focus On Corporate Governance Board of directors Strong IFC (internal finance control) Strong Regulatory Compliance EKI’s board has 3 out of 6 as Internal project launched to identify Onboarded reputed statutory auditors independent directors business risks and define strategic Walker Chandiok &
Slide 29: Future Outlook and Business Opportunities
FUTURE OUTLOOK AND BUSINESS OPPORTUNITIES WORLDS NEXT BIG SUNRISE SECTOR
Slide 30: Developments shall boost EKI's leadership in International Carbon Markets
Developments shall boost EKI’s leadership in International Carbon Markets Opportunity EKI’s right to win Implementation of the New industry & national Quality premium in Paris Agreement’s Article 6 compliance schemes the voluntary market o Provision for trade of emission reductions New sources of de
Slide 31: Strong Business Outlook and Plans across each of the business verticals
Strong Business Outlook and Plans across each of the business verticals Business unit Strategic Outlook Progress so far (FY23 YTD) Plans for next 12 months Consultancy Diversify credit supply o Introduced new range of products:, o Increase share of supply from community-based, base and continue to C
Slide 32: Key Investment Highlights
Key Investment Highlights o Strong legacy of over 14 years in the carbon markets 1 Trust and experience o Over 3,000 clients globally o Presence in 40+ countries o ~15% share of global voluntary carbon market 2 Market leader o Voluntary carbon market growing at CAGR of ~35% in past 5 years in growin
Slide 33: ESG
ESG POISED FOR SUSTAINABLE GROWTH OVER LONG TERM
Slide 34: Environment, Social Initiatives & Recognitions
Environment, Social Initiatives & Recognitions Environment Social o Committed to reach Net Zero by 2030: o Plan for social activities developed including: o Undertaking annual GHG footprint calculation o Financial literacy programs for marginalized o Committed to UNFCCC Climate Neutral Now communiti
Slide 35: Thank You
THANK YOU EKI Energy Services Ltd CIN :L74200MP2011PLC025904 Ms. Itisha Sahu Company Secretary & Compliance Officer cs@enkingint.org Mr. Bhavin Soni +91 98335 37225 bhavin.soni@linkintime.co.in Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in
EKI Energy Services — Q3 FY2023 Earnings Presentation on 6ix