Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — Investor Presentation (August 2016)
31 slides from Va Tech Wabag's investor presentation, August 2016
Slide 1: VA Tech Wabag Ltd. Investor Presentation
VA TECH WABAG LTD. Investor Presentation August 2016
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 Bernard Birou –Europe Cluster Head 23 years experience across three diverse organizations including 13 A water technologist with > 35 years of technical and managerial years in Ford Motor company as CFO & Director. experience in the
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 5 times From Rs. 332 Crs to Rs. 1,503 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 5,140 3,354 2,977 2,155 1,774 FY 12 FY 13 FY 14 FY 15 FY 16 Rs. Crs. 15
Slide 16: Robust Revenue Growth
Robust Revenue Growth 2,542 2,428 2,239 1,619 1,447 FY 12 FY 13 FY 14 FY 15 FY 16 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 35-40% of annual turnover 4 – Invoice raised & recognized as Revenue that appear
Slide 18: 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 17 14 3 3.5 4 4 4 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Earning Per Share 14 17 21 20 17 (Rs.) Dividend Per Share 3 3.5 4 4 4 (Rs.) Dividend Payout 21 % 21 % 19% 20% 24% 18
Slide 19: Strategic Geographical Spread
Strategic Geographical Spread Europe Middle East • R&D Centre – over 100 patents • >50% of Desal market in Saudi • Low working capital • High potential for advanced • References for global business technologies • Technology Centre for advanced • Competitiveness through Indian technologies in waste w
Slide 20: Quarterly Performance
Quarterly Performance 20
Slide 21: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss INR Millions Q1 FY17 Q1FY 16 YoY % Income 2,557 2,538 1% Cost of Sales vary quarter on quarter Other Operating Income 45 26 71% depending on the mix of projects Cost of Sales 1,941 1,764 10% Good Order Intake in Q4 FY 16 & in Total Cost of Operations
Slide 22: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss INR Millions Q1 FY17 Q1FY 16 YoY % Income 5,794 4,548 27% Other Operating Income 8 7 18% Expediting of Sales in Overseas Cost of Sales 4,634 3,360 38% entities resulted in increase in Consolidated sales by 27% Total Cost of Operations (TCO) 894 911 -
Slide 23: Results Overview – Balance Sheet
RESULTS OVERVIEW – Balance Sheet INR Millions Mar ‘16 Mar ’15 Mar ‘16 Mar ’15 Reduction in Non-current liabilities is due to 28% NAD Consolidated Standalone devaluation of Long Term Net Worth 9,918 9,028 7,811 6,863 borrowings pertaining to Ujams BOOT Project and Minority Interest 82 49 reduction
Slide 24: Results Overview – Working Capital Highlights
RESULTS OVERVIEW – Working Capital Highlights INR Millions Mar ‘16 Mar ’15 Inventories 976 470 Trade Receivables 17,682 14,807 Company resorted to use its cash & borrowings in Loans and Advances 1,099 1,063 Balance Sheet for Speedier execution as Other Current Assets 1,503 1,191 sub-contractors an
Slide 25: Revenue Breakup – Q1 FY17
Revenue Breakup – Q1 FY17 EPC O&M INR Millions EPC O&M Total Municipal Industrial Municipal Industrial 22% Wabag India 680 1,565 236 76 2,557 78% Wabag Overseas 1,570 731 696 240 3,237 Total 2,250 2,296 932 316 5,794 Municipal Industrial 45% 55% EPC [Rs. Bn.] O&M [Rs. Bn.]@ India Austria MDUs* IIUs
Slide 26: Key Projects Contributing to Revenue – Q1 FY17
Key Projects Contributing to Revenue – Q1 FY 17 Revenue recognized Project Details [INR Mn] APGENCO – BOP with Water management 1,082 AMAS, Bahrain – 40 MLD STP 528 Istanbul, Turkey O&M 371 Petronas RAPID ETP, Malaysia 354 Polatli, Turkey – WWTP 228 Dangote, Nigeria – 60 MLD RWTP 196 S
Slide 27: Order Book Analysis – Q1 FY17
Order Book Analysis – Q1 FY17 27
Slide 28: Order Intake Breakup – Q1 FY17
Order Intake Breakup – Q1 FY17 EPC O&M INR Millions EPC O&M Total 20% Municipal Industrial Municipal Industrial Wabag India 2,312 1,808 501 30 4,651 80% Wabag Overseas 1,021 1,291 192 891 3,395 Municipal Industrial Total 3,333 3,099 693 921 8,046 50% 50% Key Orders Received in Q1 Order Value (INR Mn
Slide 29: Order Book Composition – Q1 FY17
Order Book Composition – Q1 FY17 EPC O&M Rs. Millions EPC O&M Total 17% Municipal Industrial Municipal Industrial Wabag India 21,798 11,498 10,385 132 43,813 83% Wabag Overseas 18,573 10,263 386 1,473 30,695 Municipal Industrial Framework 8,659 Contracts 31% Total 40,371 21,761 10,771 1,605 83,167 6
Slide 30: Order Book of Rs. 74.5 Bn & Framework Contracts of Rs. 8.7 Bn
Order Book of Rs. 74.5 Bn & Framework Contracts of Rs. 8.7 Bn Key Contracts in Orderbook Key Framework Contracts * Project Details Amt [Rs. Mn] Libya STP of Rs. 6,114 mn • Petronas RAPID ETP, Malaysia 13,161 7,340 Tobruk, Libya Desal of Rs. 1,181 mn • Polgahawela, Sri Lanka – WTP • Koyambedu, Ch
Slide 31: 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, AGM IR Mr. Gaurang Vasani, Managing Director