Va Tech Wabag Limited · NSE:WABAG
Va Tech Wabag — Investor Presentation (February 2014)
26 slides from Va Tech Wabag's investor presentation, Feb 10, 2014
Slide 1: VA Tech Wabag Investor & Analyst Meet
VA TECH WABAG Investor & Analyst Meet 10th February 2014
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 Water Treatment Plant, Meenad, Kerala 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: 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 7: 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 3 times From Rs. 332 Crs to Rs. 1041 Crs Perennial Rights to “WA
Slide 8: 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 Qatar Nepal Turkey Municipal Tanzania Bahrain Sub Saharan / No
Slide 9: Evolving with growth in International Geographies
… evolving with growth in International Geographies Order Intake (Rs. 1,774 Crs.) in FY 2012 Order Intake (Rs. 2,155 Crs.) in FY 2013 Others* Others* 24% 2% Austria Group 40% India 51% India 58% Austria Group 25% Leveraging Indian resources for gaining momentum in International Geographies 9 * Other
Slide 10: Moving Closer to Clients
Moving Closer to Clients….. Total Cost of Operation in Wabag Austria Group Total Cost of Operation in Wabag Austria Group (Euro 35 Mn) in FY 2009 (Euro 26 Mn) in FY 2013 Other Other Geographi Geographi es es 13.58 14.01 38% 53% Austria Austria 21.8 12.32 62% 47% Reduced expenses in High Cost Geograp
Slide 11: Our Key Strengths
Our Key Strengths Chirita, Water Treatment Plant, Romania 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: Presence in High Growth Potential Water Markets
Presence in High Growth Potential Water Markets Countries Market $Bn CAGR Range Countries Market $Bn CAGR Range US 107.0 10-15% Algeria 4.0 6-10% China 47.0 6-10% Iran 3.8 10-15% Italy 16.0 10-15% Egypt 3.5 6-10% Brazil 15.0 10-15% Indonesia 2.5 10-15% Spain 11.0 15%+ Hungary 1.8 15%+ Saudi Arabia 8
Slide 14: 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 15: Financial Highlights
FINANCIAL HIGHLIGHTS Waste Water Treatment Plant, Turkey 15
Slide 16: Consistent Order Intake across geographies
Consistent Order Intake across geographies… Growth in Order Intake despite Global Economic 3,048 Slowdown, Arab Spring & Policy Paralysis in India 2,155 Converted Threat into Opportunity – Robust 1,802 1,774 Order Intake Growth in Overseas Business Rs. 398 Crs. of Framework Contracts added in
Slide 17: Increase in Average Order Size
Increase in Average Order Size 70% Increase in ticket size [Rs. Crs.] * 183 136 108 FY 2012 FY 2013 9M FY 2014 Petrobrazi, Romania * Average of Order intake of Top 10 projects during Financial year 17
Slide 18: Current Order Book of Rs. 6,000 Crs.
Current Order Book of Rs. 6,000 Crs. Average execution period for Municipal Orders – 24 O&M months & Industrial 1,611 Orders – 12 to 15 months 27% Most of Municipal Orders backed by funding from Multilateral / JNNURM / Central Govt /LCs. Industrial Orders from EPC - reputed companies like Indu
Slide 19: Robust Revenue Growth
Robust Revenue Growth… Well Diversified Geographical Presence 1,619 reduces dependence 1,447 on Single Country 1,244 Ability to convert 686 Order book in to 674 Revenue despite 510 temporary 1334 geographical set back 933 and other economic 734 773 issues FY 11 FY 12 FY 13 9M FY14 9M Q4 Rs. Crs.
Slide 20: Improved EBITDA margins
… with improved EBITDA margins Increase in O&M 155 Business Revenue share from 10% in 130 121 FY 11 to 17% in FY 13 90 Gaining margin on account of better absorption of 83 91 Overhead 102 Margin improvement 65 despite Investments 38 39 in various international geographies (MDUs) FY 11 FY 12 FY
Slide 21: Consistent growth in PAT
Consistent growth in PAT 90 74 Asset Light Model resulting in low 53 Depreciation and 60 Finance Cost 60 Any improvement in 42 EBITDA directly flows 46 through PBT 30 7 14 FY 11 FY 12 FY 13 9M FY14 9M Q4 Rs. Crs. 21
Slide 22: 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 term – Q4 generally accounts for 40-45% of annual turnover 4 – Invoice raised & recognized as Revenue that appear
Slide 23: 100 MLD Nemmeli (Chennai) Desalination Plant
100 MLD Nemmeli (Chennai) Desalination Plant Nemmeli, Chennai - 100 000 m3/day - Reverse Osmosis & Ultrafiltration Technology - Total Contract Value : Rs. 1084 Crs. - Total EPC Cost : Rs. 584 Crs. - Received till date : Rs. 497 Crs. - Outstanding Receivables : 87 Crs. [including retention money of R
Slide 24: Consistently achieving Guidance
Consistently achieving Guidance FY 2013 [Rs Crs] FY 2014 [Rs Crs] 2,000 - 2,600 – ACHIEVED 2,100 2,700 1,600- 1,700 1,850 – Surpassed 1,950 9M FY14 Order 1,335 Intake Guidance in 9 months Revenue Order Intake Revenue Order Intake Upward Revision of Guidance for FY 14 Revenue : Rs. 2,000 Crs., Order
Slide 25: Improved Dividend Pay-out
Improved Dividend Pay-out 350% EPS DPS 300% 200% 34 28 21 4 6 7 FY 2011 FY 2012 FY 2013 Earning Per Share (Rs.) 21 28 34 Dividend Per Share (Rs.) 4* 6 7 Dividend Payout 19 % 21 % 21 % 25 * Adjusted for Share Split.
Slide 26: Thank You
Our Key Strengths Thank You 26
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