Slide 1: VA Tech Wabag Ltd. Investor Presentation FY18
Water +ve VA TECH WABAG LTD. Investor Presentation FY 18
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 Rajneesh Chopra – Global Head – Business Development 25 years experience across three diverse organizations including 13 30 years of work experience with more than 25 years in the Water years in Ford Motor company as CFO & Director
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 over 5 times From Rs. 332 Crs to Rs. 1,856 Crs Perennial Rights to “W
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 3,620 3,354 3,193 2,977 2,155 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Rs. Crs. 15
Slide 16: Robust Revenue Growth
Robust Revenue Growth 3,457 3,208 2,542 2,428 2,239 1,619 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 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
Dividend Pay-out Adjusted for Bonus Issue of 1:1 in FY 2015 EPS DPS 24 21 20 19 17 17 3.5 4 4 4 4 4 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Earning Per 17 21 20 17 19 24 Share (Rs.) Dividend Per 3.5 4 4 4 4 4 Share (Rs.) Dividend Payout 24% 22% 24% 29% 26% 20% (including tax) 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: Index
Index 1 Key Highlights Q4 & FY 18 2 Quarterly Performance 3 Namami Gange 4 Order Book Analysis 20 Water +ve
Slide 21: Key Highlights Q4 & FY18
Key Highlights Q4 & FY 18 21 Water +ve
Slide 22: Key Highlights
Key Highlights Consolidated Revenue up by 7.8% Consolidated EBITDA at 8.7% Consolidated PAT at INR 1,315 Mio up by 28.4% Order Book over INR 75 Bn including framework orders Water Treatment Plant, Alpnach, Switzerland 22 Water +ve
Slide 23: Quarterly Performance
Quarterly Performance 23 Water +ve
Slide 24: Results Overview – Consolidated Profit and Loss
RESULTS OVERVIEW – Consolidated Profit and Loss Rs. Millions Q4 FY18 Q4 FY17 YOY % FY18 FY17 YOY % Revenue from 10,374 11,317 (8.3%) 34,572 32,079 7.8% • Growth in top line operations driven by significant Cost of Sales 8,125 9,058 (10.3%) 27,336 25,388 7.7% progress in key Total Cost of Operations
Slide 25: Results Overview – Standalone Profit and Loss
RESULTS OVERVIEW – Standalone Profit and Loss Rs. Millions Q4 FY18 Q4 FY17 YOY % FY18 FY17 YOY % Revenue from 5,346 7,038 (24.0%) 18,563 17,984 3.2% Operations Cost of Sales 4,175 5,753 (27.4%) 14,361 13,980 2.7% Total Cost of Operations • Revenue growth 711 740 (3.9%) 2,266 1,984 14.2% subdued by G
Slide 26: Results Overview – Balance Sheet
RESULTS OVERVIEW – Balance Sheet Rs. Millions Mar ’18 Mar ’17 Mar ’18 Mar ’17 Consolidated Standalone Total Equity (Net Worth) 11,624 10,104 9,169 8,241 Non-Current Liabilities 2,732 2,695 1,995 1,942 Trade Payables 14,899 12,574 9,255 8,300 Short Term Borrowings 4,274 2,459 2,763 1,199 Other Curren
Slide 27: Results Overview – Working Capital Highlights
RESULTS OVERVIEW – Working Capital Highlights Rs. Millions Mar ’18 Sep’17 Mar ’17 Inventories 382 467 385 Trade Receivables 24,561 24,282 21,238 Loans and Advances 348 347 408 Other Current Assets 3,054 2,806 2,163 Total Current Assets (A) 28,345 27,902 24,194 Trade Payables 14,899 12,728 12,574 Oth
Slide 28: Revenue Breakup – FY18
Revenue Breakup – FY18 EPC O&M Rs. Millions EPC O&M Total 12% Municipal Industrial Municipal Industrial Wabag India 7,978 8,416 1,185 608 18,187 Wabag Overseas 6,482 7,311 1,659 651 16,103 88% Total 14,460 15,727 2,844 1,259 34,290 Municipal Industrial 50% 50% EPC [Rs. Bn.] O&M [Rs. Bn.] India Europ
Slide 29: Key Projects Contributing to Revenue – YTD FY18
Key Projects Contributing to Revenue – YTD FY18 Revenue recognized Project Details [Rs. Mn] Petronas RAPID, Malaysia - ETP 7,263 AMAS, Bahrain – STP 1,981 APGENCO – BOP with water management 2,185 Desal & STP Order, Saudi Arabia 1,930 Dangote, Nigeria - ETP & RWTP 1,883 Koyambedu, Chenna
Slide 30: Namami Gange
Namami Gange 30 Water +ve
Slide 31: Namami Gange
Namami Gange 24/7 management of the wastewater Total outlay expected ~ INR 20,000 Crores catering 16 million inhabitants of Istanbul Integrated City Management Model Large scale projects summing up to ~ INR 5,000 Crores in Kanpur, Allahabad, Patna and Kolkata Sewerage Treatment and Network Sewage tr
Slide 32: Order Book Analysis – FY18
Order Book Analysis – FY18 32 Water +ve
Slide 33: Order Intake Breakup
Order Intake Breakup EPC O&M Rs. Millions EPC O&M Total 19% Municipal Industrial Municipal Industrial Wabag India 10,257 7,665 3,466 565 21,953 81% Wabag Overseas 7,206 872 1,264 636 9,978 Municipal Industrial Total 17,463 8,537 4,730 1,201 31,931 30% Order Value Key Orders Received (Rs. Mn.) 70% Ri
Slide 34: Order Book Composition
Order Book Composition EPC O&M Rs. Millions EPC O&M Total 22% Municipal Industrial Municipal Industrial Wabag India 20,918 12,963 12,129 1,549 47,559 78% Wabag Overseas 15,172 4,066 856 433 20,527 Municipal Industrial Framework 9,345 Contracts 28% Total 36,090 17,029 12,985 1,982 77,431 72% 13.2 14.
Slide 35: Order Book and Framework Contracts; Guidance for FY19
Order Book of Rs. 68 Bn & Framework Contracts of Rs. 9.3 Bn Key Contracts in Orderbook Key Framework Contracts * Project Details Amt [Rs. Mn] Dangote, Nigeria - ETP & RWTP 6,250 Libya STP of Rs. 6,114 Mn Polgahawela, Sri Lanka – WTP 5,077 Purolite, Romania of 1,656 Mn Koyambedu, Chennai –
Slide 36: 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. Gaurang Vasani, Managing Director investors@wabag.in vgaurang@stel