KEC International Ltd. · NSE:KEC

KEC International — Investor Presentation (February 2012)

49 slides from KEC International's investor presentation, February 2012

  1. Slide 1: KEC International Limited Corporate Presentation

    KEC International Limited Corporate Presentation F e b r u a r y, 2 0 1 2

  2. 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,

  3. Slide 3: Contents

    Contents Company Profile Business B usiness Overview Management Team Financial Performance

  4. Slide 4: Company Profile

    ORPG Company Profile

  5. Slide 5: KEC International - At a Glance

    KEC International - At a Glance  A diversified global Infrastructure EPC major Transmission  Flagship company of the RPG Group  Leadership in Power Transmission EPC space.  Over 6 decades of experience.  Project footprints in over 45 countries across the globe.  A billion dollar revenue compan

  6. Slide 6: Our value drivers

    Our value drivers Vision To be a global leader in Power Transmission and Distribution EPC business and a significant player in other infrastructure business, providing superior value to all stakeholders. Cultural Pillars  Delivery Focus  Empowering Performance  Cost & Profitability Focus  Valuin

  7. Slide 7: Historical Milestones

    Historical Milestones Structures Tower International supplied for 765 kV Railway supply to turnkey Entry in Bhakra transmission Turnkey New transmission Water and Nangal project Construction Zealand in Sudan BoP Project, India. 1945 1950 1959 1960 1961 1968 1982 1999 2007 2009 2010 2011 Taken over b

  8. Slide 8: Global Footprint

    Global Footprint EPC Projects Tower Supply KEC International Limited 8

  9. Slide 9: KEC - Equity Share Information

    KEC - Equity Share Information Shareholding pattern as on Dec 31st, 2011 Equity Share Information (Jan 31st 2012)  Share Price - Rs. 53 per share  Market Cap – Rs. 1372 Cr. ($281 mn) Promoters, 42% Institutions, 42%  Price to Earning (P/E Ratio) – 6.4 times (Based on current share price and earni

  10. Slide 10: Business Overview

    ORPG Business Overview

  11. Slide 11: Power Transmission

    Power Transmission

  12. Slide 12: Power Transmission

    Power Transmission  More than 60 years of experience in turnkey construction of transmission lines.  Strong presence in South Asia, Middle East, Africa, Central Asia and North America & Latin Americas.  Successfully executed turnkey transmission projects and supply of transmission towers in over

  13. Slide 13: SAE Towers, United States - A wholly owned subsidiary of KEC

    SAE Towers, United States - A wholly owned subsidiary of KEC  SAE Towers headquartered in Houston, Texas is a 100% subsidiary of KEC since September 2010.  Leading manufacturer of lattice transmission towers in the Americas.  Annual production capacity – 100,000 MTs spread over 2 locations  Mont

  14. Slide 14: Projects in Diverse Terrain / Climatic Conditions

    Projects in Diverse Terrain / Climatic Conditions KEC International Limited 14

  15. Slide 15: Projects in Diverse Terrain / Climatic Conditions

    Projects in Diverse Terrain / Climatic Conditions KEC International Limited 15

  16. Slide 16: Tower Manufacturing

    Tower Manufacturing  Largest globally operated tower manufacturing company in the world.  Multi- locational plants o India - Nagpur (Maharashtra), Jabalpur (Madhya Pradesh) and Jaipur (Rajasthan) o Americas - Monterrey (Mexico) , Belo Horizonte (Brazil).  Manufacturing Capacity - 251,000 MTs (Own

  17. Slide 17: Design and Engineering Capabilities

    Design and Engineering Capabilities Design & Engineering  In-house design centers with a strong team of over 100 design experts spread in India and Americas.  Equipped with latest softwares like BOCAD, PLS Tower, PLS Pole, i-Tower, PLS CADD, AUTOCAD, MICROSTATION and Google Earth.  Providing comp

  18. Slide 18: Tower Testing Capabilities

    Tower Testing Capabilities  The only company in the world to have 4 tower testing stations, three in India and one in Brazil. o India - Nagpur (Maharashtra), Jabalpur (Madhya Pradesh) and Jaipur (Rajasthan) o Brazil: Betim (Belo Horizonte)  The Nagpur facility is the highest-capacity tower testing

  19. Slide 19: Power Systems

    Power Systems

  20. Slide 20: Power Systems - Substation

    Power Systems - Substation  Designing and constructing substations – Executing various projects in India and Overseas  Entered into CIS region in substation segment by securing 1150 kV & 500 kV substations project in Kazakhstan. Total contract value is Rs. 926 crore (~$ 208 mn)  Entered into 400

  21. Slide 21: Power Systems – Rural Electrification, Balance of Plant

    Power Systems – Rural Electrification, Balance of Plant Rural Electrification  Successfully executed Rural Electrification projects in different parts of the world..  Presently executing Rural Electrification projects in India, Kenya, Ethiopia and Afghanistan  Electrified 10,000 villages  Connec

  22. Slide 22: Industry Outlook Power Transmission and Distribution

    Industry Outlook Power Transmission and Power Distribution (T&D) KEC International Limited 22

  23. Slide 23: Industry Outlook – T&D

    Industry Outlook – T&D  The T&D industry expected to show strong demand globally driven by -  New power generation capacities  Increasing Private Sector Investments in the sector  Investments in interconnection grids/projects by various countries  Replacement of existing aged networks  Region-

  24. Slide 24: Industry Outlook – T&D (Contd..)

    Industry Outlook – T&D (Contd..) India (Power Transmission)  Government 11th five year(2007-12) is likely to add power generation capacity of ~50 GW against target of 78 GW.  In 12th five year plan (2012-17), government has planned capacity addition target of 76 GW.  The 11th five year plan had a

  25. Slide 25: Industry Outlook – T&D (Contd..)

    Industry Outlook – T&D (Contd..) United States –  The American Reinvestment and Recovery Act (ARRA) of 2009 is facilitating ~USD 11 Bn dedicated to the T&D grid in the USA  This is required for augmentation and strengthening of the transmission system, modernising the national electric grid and im

  26. Slide 26: Industry Outlook – T&D (Contd..)

    Industry Outlook – T&D (Contd..) Middle East -  The major demand driver in the region is upcoming large power generating plants including nuclear plants, development of inter-country/regional interconnection lines and increasing private investment.  Total estimated investment in the Middle East re

  27. Slide 27: Cables

    Cables

  28. Slide 28: Cables

    Cables Key Highlights  Fully integrated cable manufacturer with state-of-the-art manufacturing facilities in different parts of India.  Pioneered production of XLPE cables in India.  Significant presence in manufacture of power cables, telecom cables and turnkey contracting.  The manufacturing f

  29. Slide 29: Manufacturing Facilities - Cables

    Manufacturing Facilities - Cables High tension power cables  Installed capacity (Power Cables) : 1,200 KMs/annum  Leading manufacturer and pioneer in introducing XLPE cables in India. Thane Power cables & Telecom cables Installed capacity  Power cables: 10,000 KMs/annum  Jelly Filled cables & Op

  30. Slide 30: Manufacturing Facilities - Cables

    Manufacturing Facilities - Cables  Putting up a State of the art, Greenfield facility at Samlaya, Vadodara (Gujarat-India)  Expected Commissioning – Q1 FY 13  Plant will be capable of manufacturing Power cables up to 220 kV  Plant will have a capacity of 3,000 cable kilometers per annum. Site Pl

  31. Slide 31: Cables – Industry Outlook in India

    Cables – Industry Outlook in India  The demand for cables is directly dependent on the growth in power sector, railways, real estate, telecom, refineries etc.  Of the total requirement for cables, 80% requirement is from power sector, followed by 10% requirement by telecom sector and balance from

  32. Slide 32: Telecom

    KEC RPG Telecom

  33. Slide 33: Telecom

    Telecom Key Highlights  Amongst leading EPC players to provide telecom towers on turnkey basis to operators, tower management companies and utilities.  Experience in laying OFC and OPGW cables on turnkey basis and live line conditions.  Installation and commissioning of GSM/ CDMA equipment.  Exp

  34. Slide 34: Railways

    Railways

  35. Slide 35: Railways – Key Highlights

    Railways – Key Highlights  Complete turnkey solutions provider in the Railways Infrastructure EPC space. o Civil infrastructure including bridges, tunnels, platform, workshop modernization, building of station and facilities o Earthwork, new track laying and rehabilitation of existing tracks. o Rai

  36. Slide 36: Railways – Industry Outlook in India

    Railways – Industry Outlook in India  The Annual Railway Budget of Government of India has proposed the highest ever plan outlay at ~Rs. 57,600 crore (~$ 11 bn) for 2011-12 on Indian Railways.  Key focus areas for investments includes electrification, capacity enhancements, addition of new lines,

  37. Slide 37: Water

    Water

  38. Slide 38: Water – Key Highlights

    Water – Key Highlights  Skills and expertise at every phase of water and waste water management. o Irrigation and Hydroelectric construction o Embankment and Flood Control o Sewage and industrial effluent treatment o Potable water treatment and distribution  Current order book is ~Rs. 300 crore (~

  39. Slide 39: Water – Industry Outlook in India

    Water – Industry Outlook in India Current Scenario in India  India with 2.3% of the world’s total area has 16% of the world’s population; but only 4% of the total available fresh water.  Only 21% of the total Indian population has access to piped drinking water and 28% of Indian population has sus

  40. Slide 40: Management Team

    Management Team

  41. Slide 41: Highly Experienced Team

    Highly Experienced Team  Meritorious Chartered Accountant with an Advanced Management Programme from Harvard Business School.  39 years of varied experience across textile, edible oils & Engg. Industries & also geographies.  President of IEEMA (Indian Electricals and Electronics Manufacturers Ass

  42. Slide 42: Highly Experienced Team

    Highly Experienced Team Luigi Ruggieri Randeep Narang Nikhil Gupta CEO, SAE Towers ED - South Asia ED - Cables  Engineer with over 35 years of  Commerce graduate and an MBA from  Meritorious Chartered Accountant and experience in Power industry, headed the NMIMS, Mumbai. 25 years of experience in

  43. Slide 43: Financial Performance

    Financial Performance

  44. Slide 44: Order Book – Breakup

    Order Book – Breakup Current Order Book – Rs. 9,200 crore Order Book Order Book Breakup - Breakup - Business Geography Wise Wise Transmission, 67.2 % Power Systems, 22.9% MENA,17.8% Africa/Central Asia,18.6% Cables, 1.5% Railways, 4.4% Americas, 17.3% South Asia, 43.2% (KEC 8.4%;SAE 8.9%) Telecom &

  45. Slide 45: Order Book Growth Trend - FY12 so far

    Order Book Growth Trend - FY12 so far 10,000 ($1.9 bn) 9,200 9,000 (Rs . Cr o r e s ) 8,450 8,116 8,000 7,800 7,000 6,000 5,000 Start FY12 Q1 FY12 Q2 FY12 Q3 FY12 KEC International Limited 45

  46. Slide 46: Financial Performance – FY12 (Till Dec 2011)

    Financial Performance – FY12 (Till Dec 2011) Q3 FY12 Q3 FY 11 YTD FY12 YTD FY11 Particulars (3 months) (3 months) (9 months) (9 months) ` 1,459 cr ` 1,071 cr ` 3,744 cr ` 2,917 cr Net Revenue $ 299 mn $219 mn $ 767 mn $ 598 mn Y-o-Y Growth (%) 36.3% 28.4% ` 112 cr ` 125 cr ` 299 cr ` 310 cr EBITDA $

  47. Slide 47: Financial Performance - Historical

    Financial Performance - Historical Revenue Order Book 7800 4600 CAGR 21.7% 4474 8000 CAGR 26.1% 3907 3429 5500 3450 6000 5163 2814 4318 2300 2041 4000 3086 1150 2000 0 0 2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11 US$ Mn 469 702 676 870 1004 US$ Mn 710 1076 1018 1

  48. Slide 48: Summary

    Summary  Strong industry fundamentals  Leadership in Power Transmission EPC  Increasing presence in Substation, Railways, Waters  Robust Order Book  Diversified Geographical presence  Financial performance – Consistent Growth; Impressive ROCE and ROE  Growing through good mix of organic and i

  49. Slide 49: THANK YOU

    THANK YOU Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: [email protected] www.kecrpg.com

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