Slide 1: Vascon Engineers Limited – Result Presentation Q3 & 9M FY16
Vascon Engineers Limited Heading towards better future... Result Presentation Q3 & 9M FY16 The EPC Company of Choice
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers 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 secur
Slide 3: Agenda
Agenda 1 Q3 & 9M FY16 – Business Update 2 Company Overview 3 EPC – The EPC Company of Choice 4 Clean Room Partition – One of the largest player in India 5 Real Estate – Monetizing current portfolio 6 Annexure 3
Slide 4: Q3 & 9M FY16 – Business Update
% VASCON Q3 & 9M FY16 — Business Update
Slide 5: Q3FY16 – Coming Back on Growth Path
Q3FY16 – Coming Back on Growth Path Rs. 1,461 Mn Rs. 241 Mn Rs. 6,253 Mn Revenue EBITDA Net worth 16.5% Rs. 101 Mn Rs. 2,000 Mn EBITDA Margin Profit After Tax Net Debt Net Debt / Equity has improved to 0.3x in December 2015 as against 0.5x in March 2015 5
Slide 6: Business update
Business update Order book in the EPC business stands at Rs. 8,484 mn as on 31st December, 2015 Order intake of Rs. 2,860 mn during 9M FY16 Real Estate business development Sale of 87,020 sqft for a total sales value of Rs. 591 mn during 9M FY16 Average sales realization for the 9M FY16 ha
Slide 7: Consolidated Quarterly Performance
Consolidated Quarterly Performance Particulars (Rs mn) Q3 FY16 Q3 FY15 YoY 9M FY16 9M FY15 YoY Revenue 1,429 1,568 (8.8% 4,530 4,518 0.3% Other Income 31 46 177 172 Total Income 1,461 1,613 (9.5%) 4,707 4,690 0.4% Improved EBITDA margin on Construction account of reducing overheads Expenses / Materi
Slide 8: Segment break-up
Segment break-up Q3 FY16 segment wise split Particulars (Rs mn) Revenue Gross Profit Gross Profit Margin (%) Q3FY16 Q3FY15 Q3FY16 Q3FY15 Q3FY16 Q3FY15 EPC 634 680 111 (174) 17.5% - Real Estate 245 482 146 142 59.6% 29.5% Clean Room Partitions & BMS 579 492 166 113 28.7% 22.9% 9M FY16 segment wise sp
Slide 9: Debt repayment to save interest costs
Debt repayment to save interest costs Reduction in interest cost Gross interest (Rs. Mn) Gross Interest (Rs. Mn ) Dec-15 Sep-15 Jun-15 Mar-15 165 158 Qtr Qtr Qtr Annual 103 Gross Interest 103 158 165 580 Capitalized (28) (34) (43) (283) Debit to P&L 75 124 122 297 Jun 15 Sep 15 Dec 15 Repaid loan
Slide 10: EPC business: clear revenue visibility based on strong order book
EPC business: clear revenue visibility based on strong order book Order book details (as of 31st December, 2015) Geographical order book split Backlog Gujarat, 2% Punjab, 3% Sr. Project Name Place Type No. Tamil (Rs. Mn) Nadu, 14% Goa, 4% Karnataka, UP, 46% 1 Kailash, Lucknow Lucknow Residential 2,8
Slide 11: Current Real Estate projects under development
Current Real Estate projects under development Total (As on 31st Dec 2015) Vascon Share (As on 31st Dec 2015) Project Name Location Vascon Share Project Rev. Area Sold Sale Value Collection Sale Value Collection Area Recognised Equity Revenue msft msft Rs. mn Rs. mn Rs. mn Rs. mn Rs. mn Willows Phas
Slide 12: Company Overview
ste VASCON Company Overview
Slide 13: Vascon Engineers ...
Vascon Engineers ... Founded by Mr R Vasudevan in 1986 One of the leading EPC company in India Expertise across various types of buildings like Residential, Commercial, Industrial, IT Parks, Hospitals, malls & multiplexes, Hotels etc. Track record of successful & timely execution of Landmark
Slide 14: Evolved as leading construction company
evolved as leading construction company… Completion of construction of Vascon goes Vascon Engineers Nucleus Mall, Pune Public owned "Asia's Best Nucleus wins: ASEA Award, Employer Brand on BAI Pune Award, Brick Mortar Investment by real estate venture Excellence in Training Award, & The Sp
Slide 15: Faced significant challenges in last 3 years
faced significant challenges in last 3 years 3 years of tough challenges … … impacted Construction Sector & Vascon as well Moderate GDP growth combined with high interest Majority of the construction companies and real rates and negative consumer and business estate developers faced challenges o
Slide 16: Experienced & Confident management
Experienced & Confident management ... Mr. R. Vasudevan, Managing Director Dr. Santosh Sundarajan, Chief Executive Officer Over 35 years of experience in the Over 12 years of experience; has construction industry worked with Buro Engineers Singapore Pte Limited Responsible for the over all man
Slide 17: Steered Company survive in tough time
Steered Company survive in tough time… Focus on Improving Operational efficiency … … with Strategic Initiatives Robust Project Monitoring Writing-off bad debts to clean up the balance sheet in FY15 Review progress of the projects regularly & more frequently by MD & CEO Sale of Non Core asset
Slide 18: Strategy going forward
Strategy going forward EPC Real Estate GMP Technical Solutions Focus on diversified order book Current land bank is fully paid; Better utilization of the across segments No additional investment in manufacturing facilities Land bank Stringent criteria for client Focus on cost optimization
Slide 19: EPC Business
XE VASCON EPC Business
Slide 20: EPC business on a strong footing
EPC business on a strong footing Over 200 projects with total area of > 34 mn Sqft .. … across all building segments Hotel Institutional 5% 5% 53 202 IT 7% 81 Commercial Industrial 9% 52% 35 28 Residential 22% 5 1992-96 1997-00 2001-04 2005-08 2009-14 Since Inception Execution capability of ~ 8 mn s
Slide 21: Prestigious projects in its portfolio
Prestigious projects in its portfolio Ruby Mills Suzlon One Earth Nucleus Mall & Offices Mumbai Pune Pune Tallest commercial building Awards from BAI - Pune LEED Platinum Certification in India 21
Slide 22: Consistent quality standards ensuring repeat orders
Consistent quality standards ensuring repeat orders Pharmaceuticals IT & Software Infra/Real Estate Hotels Institutions/Hospitals 22
Slide 23: GMP Technical Solutions
es VASCON GMP Technical Solutions
Slide 24: Clean Room Partition Business
Clean Room Partition Business Established in 2005 ISO 9001: 2000 certified company State-of-the-art manufacturing facilities Baddi in Himachal Pradesh Bhivandi in Thane One of the largest manufacturers of Clean Room Partitioning Systems Turnkey Solution Provider within the Indian subco
Slide 25: Wide product range & state-of-the-art manufacturing facilities
Wide product range & state-of-the-art manufacturing facilities Manufacturing area of 150,000 Sq. ft. with a over all Manufacturing facility at Baddi supportive infrastructure area of 450,000 Sq. ft. Product range includes Clean Room Modular Partitions Clean room & Fire Proof Doors Clean ro
Slide 26: Reputed clientele
Reputed clientele soy VASCON og —T r z Seeress [rs 4 Reckitt B|Biodeal Dr.REDDY'S Benckiser nee ) Brawn Laboratories Ltd Cadila Z d Pa 3] Sor etter life. y us dedicated /j ; RPG LIFE SCIENCES LIMITED toll in D OSOL AR & a aialiaii Neclife wp ¢ ® + . yYENUS §=ji@do@@ 4+" Flamingo Parabolic Drugs Lrd.
Slide 27: Product range
Product range Galvanized Iron Clean Room Glass Reinforced Polymer Clean Room Clean Room Doors Barrier Isolator 27
Slide 28: Huge opportunity in the clean room partition business
Huge opportunity in the clean room partition business Well-positioned to capture opportunity Strong revenue growth Clean room market size in India - Rs. 15 bn Revenues (Rs. Mn) GMP has a market share of ~7%; potential to tap 2,431 the current opportunity 2,324 2,128 Used extensively in pharma
Slide 29: Real Estate Portfolio
es VASCON Real Estate Portfolio
Slide 30: Real Estate Portfolio
Real Estate Portfolio Project Area Saleable area Vascon Share Focus on asset light JDA/JVs model Particulars Saleable Area (Acres) (msft) Own (msft) 11% JDA JDA 88.3 7.2 4.7 27% Pune 29.4 2.6 1.4 Chennai 25.0 1.7 1.3 Coimbatore 14.0 1.2 0.9 Madurai 18.2 1.6 1.1 JV JV 200.5 22.3 10.1 62% Pune 55.4 3.
Slide 31: Key Pune Real Estate Projects – Around 6 Mn Sqft
Key Pune Real Estate Projects – Around 6 Mn Sqft Willows (Baner) Area: 1.4 Mn sqft Forest County (Kharadi) Liticia (Kalyani Nagar) Area: 3.2 Mn sqft Area: 0.7 Mn sqft Pune City Windermere(Koregaon Park) Area: 0.5 Mn sqft 31
Slide 32: Annexure
ste VASCON Annexure
Slide 33: Consolidated Financials
Consolidated Financials Particulars (Rs. Mn) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Revenue 10,315 7,280 7,370 6,255 6,947 EBIDTA 1,070 440 520 310 124 EBIDTA Margin (%) 10.4% 6.0% 7.1% 4.8% 1.7% Exceptional Item (210) (391) 59 - 968 PAT 650 160 (170) (432) (1,448) Post PAT Margin (%) 6.2% 2.1% NA
Slide 34: Key Management Personnel
Key Management Personnel Over 12 years of experience; has worked with Buro Engineers Singapore Pte Limited Santosh Sundararajan, Looks after technical operations, project implementation, planning and budgeting, cost control, conducts technical and commercial feasibility studies Chief Executive O
Slide 35: Landmark projects executed
Landmark projects executed Ruby Mills Tallest commercial building in Mumbai. Total Constructed area around 1.55 mn sq. ft Winner of “Well Built Structure” by Builder’s Associaton of India Symbiosis College Educational Institute Located at Viman Nagar, Pune Total Constructed area around 0.3
Slide 36: Landmark projects executed
Landmark projects executed Suzlon One Earth Rated: Platinum by LEED and 5-star by GRIHA Awarded as Best Corporate Building by AESA Acclaimed as “greenest corporate headquarters on earth” CREDAI Real Estate Award, Best Commercial & Retail Office Complex – Non Metro Total Constructed area ar
Slide 37: Awards and Recognition
Awards and Recognition Global CSR Award – 2012 Winner of 5th Indy’s Award for Corporate Social Responsibility 2011 Best Safety Performance Award for Yamazaki Technology Centre Project Pune 2011 Asia’s Best Employers Brand Award Winner of BAI –Universal Well Built Structure Competition 2011
Slide 38: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Vascon Engineers Limited Stellar IR Advisors Pvt. Ltd. CIN: L70100MH1986PLC038511 CIN: U74900MH2014PTC259212 M. Krishnamurthi / Punit Bhayani Gaurang Vasani/ Vikash Verma Mk_murthi@vascon.com / vgaurang@stella