KEC International Ltd. · NSE:KEC
KEC International — Investor Presentation (June 2010)
37 slides from KEC International's investor presentation, June 2010
Slide 1: KEC International Limited Corporate Presentation
KEC International Limited Corporate Presentation June 2010
Slide 2: 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 3: Vision statement
Vision statement To be T b a global l b l leader l d iin PPower Transmission EPC business and a significant player in other related businesses businesses, providing superior value to all stakeholders 3
Slide 4: A leading member of the RPG Group
A leading member of the RPG Group 4
Slide 5: RPG: well diversified multi-national conglomerate
RPG: well diversified multi-national conglomerate 8 Business sectors I 20+ companies I 40,000+ employees I 400,000+ shareholders 5
Slide 6: KEC: a significant value driver for the Group
KEC: a significant value driver for the Group (Rs. Crores) Revenues EBIDTA Net Profit **Current Promoter Institutional (FY`10) (FY`10) (FY`10) Market cap Holding Holding KEC International 42% 45% 3,907 406 189 2,520 CESC 52% 37% 3,450 900 433 4,610 CEAT 48% 31% 2,560 303 165 440 Phillips Carbon Blac
Slide 7: KEC: a significant value driver for the Group (USD)
KEC: a significant value driver for the Group (USD Million) Revenues EBIDTA Net Profit **Current Current Promoter Institutional (FY`10) (FY`10) (FY`10) Market cap Holding Holding KEC International 870 90 42 561 42% 45% CESC 768 200 96 1,026 52% 37% CEAT 570 67 37 98 48% 31% Phillips Carbon Black 301
Slide 8: Company profile
KEC RPG Company profile
Slide 9: Company overview
Company overview » Leading transmission & distribution EPC company in the world » End to end presence in every aspect of power supply chain, post generation - transmission Line Line, overhead & underground distribution, distribution substations, supply of towers & cables » Major player in telecom &
Slide 10: Historical milestones
Historical milestones RPG C Cables bl merges with ith KEC KEC; Largest tower Testing Station (1,200 KV) inaugurated in Nagpur, First 1200 KV tower tested 2010 Merger of RPG Transmission Limited and NITEL. T l Telecom business b i started t t d 2007 First 765KV tower project 1999 Name changed to KEC
Slide 11: Business units
Business units Power Power Distribution transmission & design Cable Railways Telecom transmission BUSINESS HEADS International: S. Asia: Sanjay Arvind Anubrata Nikhill Gupta N Chandra Sharma Vi l Kejriwal Vimal K j i l N V N. Venugopall Bh Bhattacharya h • Turnkey • Turnkey • Substation • Power & •
Slide 12: Highly experienced team
Highly experienced team RAMESH CHANDAK MD & CEO N. VENUGOPAL NIKHIL GUPTA VIMAL KEJRIWAL ED - SOUTH ASIA ED – RPG CABLES ED - INTERNATIONAL A BHATTACHARYA SANJAY CHANDRA ARVIND SHARMA CE – DISTRIBUTION & DESIGN SVCS. CE – RAILWAYS CE – TELECOM VARDHAN DHARKAR AKHIL SAXENA YOGESH GAUTAM RAJ KUMAR GUP
Slide 13: Projects in every corner of the world
Projects in every corner of the world Turnkey projects Tower supply projects 1 Afghanistan* 7 Canada 13 Indonesia 19 Kuwait* 25 Mozambique* 31 Philippines 37 Syria 2 Algeria* 8 Chad* 14 Iran 20 Laos 26 Namibia* 32 Peru* 38 Tajikistan* 3 Argentina 9 Egypt* 15 Iraq 21 Lebanon 27 Nepal 33 Saudi Arabia*
Slide 14: Tower testing & project management capabilities
Tower testing & project management capabilities BUTIBORI TESTING STATION TOWER TESTING PROJECT MANAGEMENT » Highest–capacity tower testing » Currently executing more than 100 station in the world at Butibori, Butibori projects Nagpur » Successful projects in diverse terrains: » Sophisticated test st
Slide 15: Track record of proven successes
Track record of proven successes UAE ETHIOPIA TELECOM TOWER INDIA LIBYA 400 KV D/C Tower for several countries – Ethiopia, Libya, UAE Telecom Towers for various operators in India & abroad 15
Slide 16: Track record of proven successes (cont'd.)
Track record of proven successes (cont’d.) AFGHANISTAN SAUDI ARABIA KAZAKHSTAN Working under extreme conditions: 268km access road in Saudi Arabia, Arabia -40 40˚C C temp in Kazakhstan, war-torn Afghanistan 16
Slide 17: KEC Training Institute
KEC Training Institute BUTIBORI BUTIBORI » New training institute with modern facilities for residential and non residential training set up in Butibori, Nagpur › Availability of skilled and capable manpower in power sector across various countries in the world is a concern › With the th iimmense op
Slide 18: Key success factors
Key success factors Diversified worldwide client b base and d robust b t order backlog Excellent vendor relationships & volume based procurements Strong prequalification Status The Six decades of Large capacity for tower & cables experience working manufacturing & supply with in all types of terrain
Slide 19: 5-year financial summary
5-year financial summary Rs. Crores REVENUES USD Million EBIDTA PAT 19
Slide 20: FY 2010 full year financial summary
FY 2010 full year financial summary FY 2010 FY 2009 YoY Rs Cr. Rs. Cr US $Mn. $Mn % Margin growth Rs Cr. Rs. Cr US $Mn. $Mn % Margin Sales 3,907 870 14.0% 3,429 763 - - - Raw Material 2,013 448 1,976 440 Other Direct Cost 958 213 575 128 Total Direct Cost 2,971 661 2,550 568 Employee Cost 169 38 142
Slide 21: Shareholding pattern
Shareholding pattern Major institutional shareholders % share Reliance Capital 4.71% LIC of India 4.31% HDFC Infrastructure Fund 2.10% HDFC Prudence Fund 2.01% SBI Mutual Fund 1.65% Tata Infrastructure Fund 1.50% Copthall Mauritius Investments 1.26% » Number of shares: >43,000 » Promoter shareholdin
Slide 22: Notable recent wins
Notable recent wins Value (USD Mn) Client Name Country Job Description 15 different lines of S/C and D/C for The Societe Tunisienne De 90 Tunisia voltage level 150 kV, 225 kV and 400 E’lectricite Du Gaz ( STEG) kV Railway Civil Infrastructure, and 29 Indian Railways India Signaling & Telecom orders
Slide 23: Order book status and breakdown
Order book status and breakdown YOY ORDER BOOK GROWTH INR Crores USD Mn BREAKDOWN: BREAKDOWN: SBU GEOGRAPHY 23
Slide 24: Opportunities & challenges
Opportunities & challenges OPPORTUNITIES CHALLENGES » Strong order book with well balanced » Delay in Government spending on geographical and business spread power » Increased spending on Transmission in » Volatile commodity prices (steel, Middle East, Africa and Africa; zinc, aluminum, cement) oppo
Slide 25: Awards & recognition
Awards & recognition EEPC India Gold Trophy for Top Exporter Award for 2006-07 & 2007-08 in Merchant Exporter Category (Regional) for 2007-08 in Merchant Exporter Category (All India) Maharashtra State Top Exporter Recognition for 2006-07 & 2007-08 in Merchant Exporter Category 25
Slide 26: Strategic Business Units (SBUs)
Strategic Business Units (SBUs) 26
Slide 27: Transmission & Distribution: overview
Transmission & Distribution: overview TRANSMISSION: India/ South Asia DISTRIBUTION » India » 11th Five Year Plan › PGCIL - tenders to be floated for about » Continue with APDRP* scheme to reform R 5 000 crs (USD 1b Rs.5,000 1bn)) p.a. iin th the 11th the urban distribution and reduce the Five Year P
Slide 28: Transmission & Distribution: client list
South Asia/ Easst North Middle- Africa India Asia Am merica East CIS C Transmission & Distribution: client list 28
Slide 29: Transmission & Distribution: market players
Transmission & Distribution: market players INDIA ASIA PAC EUROPE KEC Hyundai Inabensa Kalpataru Harbin Power Cobra Jyoti HG Power Isolux L&T Hyosung Power Elecnor Gammon Viscas Electromontaz Tata Projects Xlan Energoinvest Isolux SAG Inabensa AFRICA ETDE Cobra Opti Power ELTEL I Comm Kahrif Aster K
Slide 30: Tower manufacturing & design capabilities
Tower manufacturing & design capabilities BUTIBORI MUMBAI MANUFACTURING DESIGN » Manufacturing plants at Jabalpur, » Strong team of over 100 design Jaipur and Nagpur for experts transmission & telecom towers » Design facilities equipped with » ISO 9001 | ISO 14001 I OHSAS latest software like BOCAD,
Slide 31: Cable
Cable OVERVIEW CLIENTS » Around Rs. 77,000 crs. (USD15.4bn) market opportunity in India based on currentt 11th Plan Pl estimates ti t › Cable opportunities to expand due to increase in underground cable laying projects › With 3G in the offing offing, demand for telecom optical fibre cables to go up
Slide 32: Cable manufacturing facilities
Cable manufacturing facilities HIGH TENSION POWER CABLES THANE » Installed capacity: 1,000km » Leading manufacturer and pioneer in introducing XLPE cables in India LOW TENSION POWER CABLES SILVASSA » Installed capacity: 10,000km » Enjoys cheapest power tariff and sales tax benefits TELECOM & RAILWAY
Slide 33: Railways
Railways OVERVIEW CLIENTS » Large Potential in the Indian Railways sector › 11th Plan Outlay (2008-2012) – Rs. 200,000 crs. (USD 50bn) › Major Projects- Eastern & Western Freight Corridors, Monorails in MARKET PLAYERS metros, Delhi–Mumbai Industrial Signalling & Electrical Corridor (DMIC) Telecom wo
Slide 34: Telecom
Telecom OVERVIEW CLIENTS » Domestic › Current Indian mobile subscriber base in excess off 525 525mn › 10-12 million being added every month › Auction for 3G spectrum ended › Increased bandwidth and transmission requirements, strong upside for tower manufacturers » Industry forecasts indicate that mo
Slide 35: Future growth plans
KEC RPG Future growth plans
Slide 36: Multi-pronged growth strategy
Multi-pronged growth strategy Transmission Consolidate Distribution EPC Telecom Grow Substation Railways Transmission Asset Ownership BOO Telecom Cable Build scale Cable manufacturing 36
Slide 37: Thank You
KEC RPG Thank You
KEC International — Investor Presentation (June 2010) on 6ix