Engineers India Limited · NSE:ENGINERSIN
Engineers India — Investor Presentation (November 2010)
35 slides from Engineers India's investor presentation, November 2010
Slide 1: Engineers India Limited Investor Presentation November 2010
Engineers India Limited I Investor t P Presentation t ti N November b 2010
Slide 2: Table of Contents
Table of Contents 1 O Overview i off E Engineers i IIndia di Limited Li it d (“EIL”) 2 EIL – Key Investment Themes 2
Slide 3: Overview of Engineers India Limited (EIL)
Overview of Engineers India Limited ((“EIL”) EIL )
Slide 4: Engineers India Limited: Background
Engineers India Limited: Background • E Engineers i IIndia di Li Limited it d (“EIL” or th the “C “Company”) ”) iis one off IIndia’s di ’ lleading di engineering consultancy companies providing design, engineering, procurement, construction and integrated project management services and project impl
Slide 5: Evolution and Key Milestones
Evolution and Key Milestones • Became wholly- wholly • Began work in • Secured its first • Enhanced presence • Diversified Di ifi d operations ti • Commenced owned GoI company petro-chemicals international project across the by commencing work PMC** services • Began work in segment for IPCL • Began
Slide 6: Overview of Services: From Concept to Commissioning
Overview of Services: From Concept to Commissioning Process Design services • Conceptual designs and feasibility reports • Basic design packages for − Open art process units for gas-processing and refineries Certification services − Integrated utilities and offsite facilities Engineering services •
Slide 7: Overview of Nature of Contracts
Overview of Nature of Contracts Engineering, Procurement & Construction (EPC) Engineering, Procurement and Construction Management (EPCM) • Contracts under which EIL is responsible for the entire project as a turnkey contractor. EPC contracts fall into two • Contracts under which EIL provides servic
Slide 8: EIL – Key Lines of Business
EIL – Key Lines of Business Select ongoing projects Key clients • Guru Gobind Singh refinery project at Bhatinda for HMEL • Refinery expansion and upgradation project for Mangalore Refinery and Petrochemicals Ltd (MRPL) • Grassroot Bina Refinery project for BORL Refinery • Additional expansion proje
Slide 9: EIL – Key Lines of Business (Contd.)
EIL – Key Lines of Business (Contd.) Select ongoing projects Key clients • Strategic Crude Oil Facilities for the Indian Strategic Petroleum Reserves Limited at − Mangalore Terminal and − Vishakhapatnam BCPL Storages − Padur • SPM, SPM Terminal and Associated Offshore/Onshore Pipeline Project for HM
Slide 10: Wide Geographic Presence and Key Joint Ventures
Wide Geographic Presence and Key Joint Ventures Kuwait Algeria Saudi Abu Dhabi Qatar India Oman EIL focus territories Executed projects Name JV Partner EIL Stake Role TEIL Projects Limited Tata Projects Limited 50% • Target small EPC projects in India and expand operations in other related areas Tec
Slide 11: Key Investment Themes
Key Investment Themes
Slide 12: EIL – Key Investment Theme Summary
EIL – Key Investment Theme Summary 8 1 Undertaking new Leadership growth initiatives position across with a focused the hydrocarbon strategic value chain roadmap 7 Exposure 2 to high growth Track record and sectors in India long-term client with global project relationships p execution capabilities
Slide 13: Presence Across the Hydrocarbon Value Chain
Presence Across the Hydrocarbon Value Chain Oil & Gas Storage, Ports & Storage Offshore Oil & Gas Onshore Oil & Gas Refineries Petrochemicals Transportation Terminals • Work for various • Engineering consultancy • Experience and • Range of services from • EIL’s experience in the • Engineering consul
Slide 14: Leadership Position in Refineries and Petrochemicals in India
Leadership Position in Refineries and Petrochemicals in India Pata Petro. Plant Guru Gobind Singh Refinery Panipat Petro. Plant PUNJAB Guwahati Refinery Panipat Refinery Mathura Refinery • EIL has worked on a combined refining Bongaigaon Refinery capacity it off more than th 100 mmtpa t (2 million i
Slide 15: Track Record and Long-term Client Relationships – Oil and Gas
Track Record and Long-term Client Relationships – Oil and Gas Oil and Offshore Onshore Storage/ Gas Refining Petchem Pipeline Recent projects O&G O&G Terminal Majors 9 DHDT project at Bongaigaon 9 9 9 9 9 Panipat refinery expansion 9 Panipat Naphtha Cracker Project 9 Capacity expansion at Kochi 9 9
Slide 16: Track Record and Long-term Client Relationships – Mining & Metallurgy and Infrastructure
Track Record and Long-term Client Relationships – Mining & Metallurgy and Infrastructure Mining and Metallurgy Infrastructure INDAL Completed Projects Completed Projects • Alumina Refinery Project at Lanjigarh for Sterlite • Construction of Office Complex at Noida for Oil India Limited • Aluminum Sm
Slide 17: Track Record
Track Record 26 Infrastructure 205 Offshore Platforms Projects 35 Oil & Gas Processing Projects 26 Mining & Metal. Projects 49 Refinery Projects 7 Petrochemical Complexes 16 Turnkey Projects 8 Fertiliser Projects 11 Ports & Storage Terminals 37 Pipeline Projects 17 8 1 Leadership position across the
Slide 18: Recipient of Key Awards and Accolades of National Significance
Recipient of Key Awards and Accolades of National Significance MOU Award (2003) from the GoI Ministry of Heavy Industries and Enterprises, Department of Public Enterprises (Merit Certificate in the Achievement of MOU Targets for the Year 2001 – 2002); "India’s Most Admired Construction Company" 2008
Slide 19: Technical Competence backed up by In-house and Collaborative R&D
Technical Competence backed up by In-house and Collaborative R&D . . . Execution Support India’s India s leading Engineering services firm with a Technology driven organisation comprehensive business model EIL has developed over 30 process technologies for the oil & gas processing, refineries and pe
Slide 20: Robust Financial and Operating Track Record
Robust Financial and Operating Track Record T t l Income Total I and d Growth G th (INR mn)* )* FY10 Revenue R S Segmentation** t ti ** - A unique i bl blend d off services i 25,000 21,970 20,000 17,736 R mn 15,000 Consultancy & engineering INR 8,876 47% Lumpsum Turnkey Projects 10,000 6,876 5,000 5
Slide 21: Robust Financial and Operating Track Record (contd.)
Robust Financial and Operating Track Record (contd.) Robust EBITDA** Performance (INR mn)* 6,000 30% 5,024 25% 24% 25% 4,000 mn 3,216 INR m 19% 20% 21% 1,796 2,000 15% 1,105 0 10% 2006-07 2007-08 2008-09 2009-10 EBITDA (INR mn) - LHS EBITDA Margins (%) - RHS * Note: All figures have been taken on a
Slide 22: Robust Financial and Operating Track Record (contd.)
Robust Financial and Operating Track Record (contd.) Profitability (INR mn)* Earnings per Share – EPS (INR)* Return on Net Worth (%) INR mn INR INR mn 6,000 30% 16 20,000 50% 14 13 2 13.2 39% 40% 4,443 25% 12 15,000 14,064 10.4 4,000 11,784 22% 10 11,542 3,495 30% 10,533 20% % 20% 8 10,000 20% 20% 5
Slide 23: Robust Financial and Operating Track Record (contd.)
Robust Financial and Operating Track Record (contd.) Dividend Distribution (INR mn)* 7,500 6,967 1200% 1060% 1000% 6,000 800% INR mn 4,500 600% 3,000 400% 1,218 1,500 621 725 185% 200% 95% 110% 157% 45% 36% 35% 0 0% 2006-07 2007-08 2008-09 2009-10 Gross Dividend incl. tax (INR) - LHS Dividend Payout
Slide 24: EIL Share Price Movement
EIL Share Price Movement Adjusted share price performance 23-Mar-10 550 • Approval of special interim dividend proposal 15,000 28-Jan-10 • Approval of share split (INR 10 share into 2 • Proposed special dividend of INR100 per shares of INR 5) EIL share amounting to INR 5,615.6mn • Approval of bonus
Slide 25: Balanced Order Book with Potential for Diversification
Balanced Order Book with Potential for Diversification LSTK and OBE contracts convertible to LSTK • Petro-FCC Unit - This project is part of MRPL’s Phase-III Expansion Project, which was awarded to the Company on OBE basis. Total Order Book* • Sulfur Block Unit - This project is part of MRPL’s Phase
Slide 26: Balanced Order Book with Potential for Diversification
Balanced Order Book with Potential for Diversification LSTK and OBE contracts convertible to LSTK • SPM , Pipeline and Related Facilities for MRPL, Mangalore . This project is part of MRPL’s Phase-III Expansion Project, New Orders Secured which was awarded to the Company on OBE basis. (INR 18,219mn)
Slide 27: Qualified and Motivated Employee Team
Qualified and Motivated Employee Team Growing manpower despite difficult market conditions Focus to retain manpower and encourage loyalty 3,500 3,301 ; Key personnel policies in place to recruit talented 3,102 employees and facilitate integration into EIL, encourage 3,000 skill development and enhan
Slide 28: Business Model That Can Be Replicated Across Sectors
Business Model That Can Be Replicated Across Sectors Key Drivers Integrated EPC and Execution capabilities Technology focus driven Qualified and Motivated Sectors for deploying EIL’s project management with track record by R&D Employee base business model capabilities • Has worked on major • Dedicat
Slide 29: Experienced Board and Leadership Team
Experienced Board and Leadership Team • More than 33 years of experience in Oil & Gas sector • Government director nominated by MoPNG • Served S d with ith ONGC ((more th than 8 years)) Laxmi NN. Gupta • Over 25 years of experience • Served with GAIL India Limited for over 24 years, last position No
Slide 30: Beneficiary of Increased Focus on Hydrocarbon Sector in India
Beneficiary of Increased Focus on Hydrocarbon Sector in India …significant portion of total energy consumption continues to be Increased Government expenditure in the Hydrocarbon sector… on account of oil and gas onnes equivalent 800 % 34% 33% 32% 34% 695 9% 8% 10% 9% 600 575 INR bn 466 389 400 Mill
Slide 31: Exposure to High Growth Infrastructure Sector in India
Exposure to High Growth Infrastructure Sector in India Planned Infrastructure Expenditure (10th & 11th Plans) (USD bn) Planned Infrastructure Expenditure (Public & Pvt. Pvt sector) (USD bn) 500 429 Total 326 103 400 Others 112 19 USD bn USD bn 300 13 Railways 50 184 Public U U 200 150 131 Airports 4
Slide 32: Global Presence
Global Presence Client Country Purpose Vinyl Chloride (Malaysia) • PMC services for VCM Client Country Purpose Malaysia Sdn. Bhd Project • PMC Services for rehabilitation and SONATRACH Algeria g Petronas Fertilizer (Kedah) • PMC services for Fertilizer adaption of Algiers refinery Malaysia LONDON Sd
Slide 33: Key Strategic Initiatives by EIL
Key Strategic Initiatives by EIL Water and Waste Gas based fertilizer City y Gas Distribution Power Coal to liquid q M Management t projects j t • Provide integrated water • Pursue strategic city gas • Provide balance of plant • Provide a broad range of • Leverage EIL’s refining management solutions
Slide 34: EIL's Strategy for Future Growth
EIL’s Strategy for Future Growth Road map to become a world class globally competitive total EPC and total solutions company • Continue to invest in R&D and technology development for world class delivery of solutions to clients • Leverage on track record and EPC • Enter into strategic alliances to
Slide 35: Thank You
THANK YOU
Engineers India — Investor Presentation (November 2010) on 6ix