KEC : Corporate Presentation
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KEC International Limited Corporate Presentation 4 August 2021 Power T & D Railways Civil Solar Smart Infra Oil & Gas Cables Pipelines 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, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events and involves known and unknown risks, uncertainties and other factors. The Company cannot guarantee that these assumptions and expectations are accurate or exhaustive or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. No obligation is assumed by the Company to update the forward-looking statements contained herein. The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of KEC International Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or to be relied in connection with an investment decision in relation to the securities of the Company therefore any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. Neither the delivery of this document nor any further discussions by the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations. RPG Group Page 04-05 BusinessKEC International Overview PagePage 14 06-37-10 Leadership Team Page 11-13 ManagementIndustry Overview Team PagePage 39 14-40-17 Business Overview Page 18-26 Financial Overview Page 27-32 Environmental, Social and Governance (ESG) Page 33-36 Contents 3 RPG Group 4 RPG Group: Powered by Passion, Driven by Ethics Founded by Shri RP Goenka in 1979 One of India’s fastest growing conglomerates Turnover in excess of USD 4 billion 20,000+ employees Footprint in 105+ countries KEC acquired by RPG Group in 1982 KEC RPG Life Harrisons CEAT Zensar Raychem International Sciences RPG Malayalam Global EPC Leading Software Pharma Engineering One of India’s Company; T&D, manufacturer services provider Company; wide products & largest plantation Railways, Civil, of automobile spread across range medicines services companies; tea, Solar, Smart Tyres 20 countries in global generics company rubber & other Infra, Oil & Gas & synthetic APIs agro-products & Cables 5 KEC International 6 KEC Overview DECADES OF EXPERIENCE 9000+ 7+ & EXPERTISE EMPLOYEES DIVERSE 35+NATIONALITIES FOOTPRINT IN 105+ $1.8 COUNTRIES BILLION GLOBAL EPC MAJOR ONGOING PROJECTS IN 40%+ 30+ BUSINESS COUNTRIES OVERSEAS 7 KEC Overview • Global infrastructure EPC major • FY21 Sales: Rs. 13,114 crore (USD 1.8 billion) • Eight manufacturing facilities across India, Dubai, Brazil and Mexico Footprint in 105+ countries across the globe Central Asia Americas Middle Oceania Africa East India & South Asia EPC Footprint countries EPC: 70+ countries Tower Supply: 65+ countries Cables Export: 80+ countries 8 Overview (contd.) Sustained leadership in Power Transmission EPC • Indian multinational infrastructure EPC major • Over 7 decades of experience; presently executing 250+ projects Diversifying to mitigate risk • Diversified across businesses and geographies • Footprint in 105+ countries across 6 continents (EPC & Supply) • Currently executing EPC projects in 30+ countries Strong global presence • Business spread across India, SAARC, Middle East, Africa, Southeast Asia, Americas and Oceania Robust Order Book • Order Book of ~Rs. 26,000 crore (including L1) (As on 30 June 2021) Consistent Growth • FY21 Sales: Rs. 13,114 crore (USD 1.8 billion) 9 KEC’s Expansion into New Verticals 10 Leadership Team 11 Board of Directors H. V. Goenka Chairman Vimal Kejriwal A. T. Vaswani D. G.Piramal G. L. Mirchandani M.S. Unnikrishnan MD & CEO Director Director Director Director Nirupama Rao R. D. Chandak S. M. Trehan Vikram Gandhi Director Director Director Director 12 Management Team Vimal Kejriwal Managing Director & CEO Rajeev Agarwal Neeraj Nanda Anand Kulkarni Kaushal Kodesia Manjit Singh Sethi Chief Financial Officer President – South Executive Director – Executive Director – Executive Director – Asia (T&D, Solar & Business Operations Railways Cables Smart Infra) Nagesh Veeturi Sanjeev Agarwal Gustavo Cedeno Pankaj Kalani Somraj Roy Sumant Srivastava Executive Director – Executive Director – Chief Executive Senior Vice President – Chief Human Chief Executive – KEC Civil International Officer – SAE Towers Finance and Resources Officer Towers LLC and (T&D, Solar) Chief Executive - Oil & Senior Vice President - Gas Pipelines MENA 13 Industry Overview 14 Industry Outlook: Transmission & Distribution (T&D) INDIA • Last mile electrification; 24x7 Power for All • Augmentation of transmission networks; addition of 1,00,000+ ckm of TLs & T&D Capex – FY2016-40 ($Bn) 2,90,000+ MVA of transformation capacity expected between 2017-22 Region 2016-25 2026-40 SAARC Afghanistan, Bangladesh, Nepal, Bhutan India 291 566 • Expansion of India’s cross border interconnection Americas 410 619 • Increase in private & multi lateral funding; focus on power generation & renewables Europe 544 755 EAP & CIS Malaysia, Thailand, Philippines, Georgia (incl. East • Initiatives funded by multilateral institutions to expand & upgrade power Europe, infrastructure Eurasia) Asia 1387 2310 MIDDLE EAST Saudi Arabia, UAE, Oman • Large power generating plants, interconnection lines planned Middle 95 218 • Investment of ~ USD 34 billion for T&D expansion expected in next five years East Africa 202 598 AFRICA Mozambique, Kenya, Uganda Latin 158 288 • Low per capita electricity consumption; Interconnections planned America NORTH AMERICA United States, Canada • ~2,60,000 km of lines planned between 2014-35 • Upgradation of existing systems; estimated investment $1.77 Bn is expected SOUTH AMERICA Brazil • Addition of ~2,28,000 km of lines expected by 2035 • Several cross-country lines planned Source: IEA's World Energy Outlook 2017, World Bank 15 Industry Outlook: Cables and Railways CABLES • Annual Indian market ~ Rs. 20,400 crore p.a. (USD 3.1 billion) • Strong demand driven by power sector, real estate and industrial activity • India’s aggressive plans for power sector, driving growth • Demand for improved network quality expected to improve telecom tower and cable demand RAILWAYS • FY22 Budget Outlay of Rs. 2,15,058 crore expected to auger well for the sector • 100% electrification target by FY23; i.e., 46,000 km of Broad-Gauge • Urbanisation & strain on existing infrastructure driving