ANNUAL INVESTOR CONFERENCE 2015 8th June 2015, Mumbai KEC International Limited A 1.3 BILLION DOLLAR GLOBAL INFRASTRUCTURE EPC MAJOR A $1.4 billion Infrastructure EPC Major KEC executed one of the most prestigious river crossing projects in West Bengal involving tower construction in mid river and along the shore. The height of individual river crossing tower is 775 feet which is about 75% of the height Eiffel Tower 3 A landmark project for KEC, 765 GIS at Thiruvalam, South India Among the First few in India! 4 AN INDIAN MULTINATIONAL INFRASTRUCTURE EPC MAJOR EPC MAJOR BUSINESS PORTFOLIO MULTI-LOCATIONAL MANUFACTURING An Indian multinational Infra EPC Leader in Power major Transmission EPC 8 Manufacturing facilities Flagship company of the RPG group Growing presence in across India, Brazil and Mexico Power T&D, Cables, Over 7 decades of experience Manufactures Towers, Cables, Railways ,Water and Poles and Hardware Presently executing 100+ projects Solar EPC GLOBAL PRESENCE GLOBAL SOURCING GLOBAL WORKFORCE Spread across 6 continents Footprints in 61+ Countries Material 5,200+ employees Currently operating in Working capital funding 23% non Indians 30+ countries Equipment Diverse nationalities ~52% sales from outside Manpower India 5 PERFORMANCE HIGHLIGHTS – FY15 FINANCIAL HIGHLIGHTS . Sales for the year increased by 7.2% to Rs 8,468 cr. EBITDA is at Rs. 512 cr an increase of 3.8% Y-O-Y . Order intake is at 8223 cr which is spread across all the businesses and geographies . Robust order book of Rs 10,370 cr. BUSINESS HIGHLIGHTS OTHER KEY HIGHLIGHTS . Improvement in profits in T&D and Cables FY15 . Continuing with asset light model. No exposure in . Closed large number of legacy projects in Infra PERFORMANCE BOO/BOOT project & distribution businesses HIGHLIGHTS . Thane freehold land sale transaction completed & . SAE Loan re-financing completed Telecom Tower business deal signed. Improving the debt leverage ratios . Good order intake from PGCIL . Two prestigious awards from PGCIL–Best Transmission . Increased focus on substation business with Line Contractor (large) & Special Prize for helping PGCIL order wins of ~Rs 1100 cr in restoring Power to New Delhi . Secured large orders in Saudi & SEBs. Third time in a row, Jaipur plant won ‘Best employer- . Good orders win from Private players 2013’ in large scale industries . Jabalpur unit received Outstanding Achievement Award 6 GROWTH ENABLERS - INFRASTRUCTURE SECTOR ABILITY OF CITIZENS TO PAY . Growing middle class population . Focus on better quality of life GROWTH ENABLERS - INFRASTRUCTURE SECTOR GOVERNMENT POLICIES FUNDING AVAILABILITY . Land acquisition and Right of Way . Multilateral agencies funding (JICA, AfDB, EBRD, World Bank, ADB etc.) . Environmental clearances . Payment security of PPP projects . Increasing private sector participation . Financial health of distribution companies . FDI . Stable tax policies . Cost of capital . Infrastructure planning 7 GROWTH ENABLERS - KEC STRONG INDUSTRY FUNDAMENTALS . Power, Railways and Water: Basic infrastructure needs for economic development and key focus areas of new Government . Each of our business has large global potential GROWTH ENABLERS - KEC STRONG BALANCE SHEET DIVERSIFIED PRESENCE . Superior working capital management . Well balanced business portfolio . Ability to grow through internal accruals; no . Global presence: Ability to secure business from equity dilution in last 15 years+ across the world . Credit Rating: A+ & A1 . Presence in developing markets as well as developed markets . Ability to borrow for growth 8 KEC – STRATEGY CORPORATE . Focus on margin improvement ; closure of legacy projects . Robust risk management . Strengthen processes: Move from people driven to system driven co. M&A: Proven track record; look for opportunistic acquisition . Consolidate and grow presence in existing businesses STRATEGY ESTABLISHED BUSINESS EMERGING BUSINESSES (Power T&D) (Cables, Railways and Water) . Expand the substations business. Already . Focus on timely execution of projects and build secured orders of Rs 1100 cr in FY15 capabilities . Enter new countries every year . Expanding our cabling EPC by utilizing Vadodara factory . Strengthen presence in SAARC & S E Asia . Gradually move closer to T&D business margins . Received 5 EPC orders in Brazil & Mexico combined. Plans to grow EPC presence in the Americas 9 TO SUM UP.. KEC HAS ALL THE KEY ENABLERS AND STRATEGIES IN PLACE TO CAPTURE THE GROWTH OPPORTUNITIES IN THE MULTI-BILLION DOLLAR GROWING INFRASTRUCTURE SECTOR 10 Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 3500+ dealers, 300+ exclusive CEAT franchisees 3 Manufacturing facilities - Bhandup, Nasik & Halol 90 countries where products are sold #No 1 player in Sri Lanka in terms of market share Breakup by Product Breakup by Market Speciality, Farm, 7% 6% Exports, Passenger 18% Cars / UV, 10% LCV, 13% Truck and Replacem Buses, ent, 61% OEM, 21% 2/3 42% wheelers, 23% % of Sales Value % of Sales Value 12 Strong OEM Presence 13 Strategic Drivers . Strong Brand Recall Passenger . Distribution Network segment1 . OEM relationships Profitable Emerging . Proven Model in Sri Lanka growth markets . Replicate in Bangladesh . Competitive Advantage Exports . CEAT Global Brand Note 1. Consists of Two Wheeler, Passenger Cars and Utility Vehicles sub segments 14 Passenger Segment: Creating Strong Brand Equity “Be Idiot Safe” “Tubeless Bike tyre” 15 Passenger Segment: Pan India Distribution Network Distribution Network . 3500+ dealers . 300+ CEAT Franchisees (Shops + Hubs) . 250+ two-wheeler distributors No. of CEAT Shops No. of district coverage 176 464 102 212 FY12 FY15 FY12 FY15 16 Passenger Segment: Pan India Distribution Network Multi Brand Outlet (MBO) Shop in Shop (SIS) New distribution model . Developed MBO / SIS model in the last 2 years . Over 250 outlets so far 17 Passenger Segment: Increasing OEM Presence Recent additions Motorcycle radial tyres in Fuel efficient tyres Scooter tyres premium bike model with Kwid model . Increased share of business with mainly passenger car OEMs Strengthened relationships with . Entered into new models with existing OEMs existing OEMs . Partner of choice for many 2 wheeler OEMs 18 Passenger Segment: Investing in Research & Development . State of the art R&D facility set up in Halol plant in 2011 Recent Product Launches . Introduced around 100 new products/ variants in FY15 – Indian Design Mark Award recipient – Motorcycle radial tyres in premium bike models CZAR GRIPP – Low rolling resistant (fuel efficient) tyres . Motocross tyres launched first time in Pune race & rated well by professionals . Research focused on new product development, alternate DHOOM Series materials & green tyres . Partnerships with institutes of global repute such as Indian Institute of Technology MILAZE 19 Passenger Segment: Performance Motorcycles (Rs Cr) 1,259 PC / UV (Rs Cr) 567 476 899 376 639 284 525 363 Revenue 146 FY 11 FY 12 FY13 FY 14 FY 15 FY 11 FY 12 FY13 FY 14 FY 15 Brand OEM Distribution R & D . 2x expansion in 2/3 wheeler and 2.5x expansion in PCR / UCR Capacity segment from the existing capacities . Mix of in-house vs outsourced production 20 Emerging Markets : Performance Revenue EBITDA1 (SLR mn) & 4,88 EBITDA(SLR mn ) EBITDA Margin (%) 12.2% 98320.1% 1,92 9 Margin 687 12% 17% 20%4 23% 4,35 4,889 1,07 532 1,090 7 4,729 1 983 316 4,553 759 532 4,357 FY'12 FY'14 FY'12 FY'14 FY'12 FY'14 FY'12 FY'14 Sri Lanka Sri FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 . 50% JV with Kelani Tyres Ltd . Strong presence in the truck, light truck, 2 / 3 wheeler and radial tyre segments . Two manufacturing facilities with total capacity2 of 61 MT/day . Only company with local presence supported by brand, network & strong after sales service . 70:30 JV with AK Khan & Company Ltd with the aim to cater to local and eastern part of Indian market . Setting up a manufacturing plant with an initial capacity of 65 MT/day . Ongoing seed marketing campaign to prepare for product launch Bangladesh Bangladesh . Imports from Bangladesh to India enjoy zero basic customs duty Notes 1. EBITDA = Profit before taxation + Depreciation and Amortization Exps + Finance Costs 2. Capacity refers to achievable capacity 21 Export Market : Performance Exports trend FY15 Export sales break-up Others, 12% 1,091 1,074 997 978 Middle East, 29% South America, 618 17% 477 Africa, 18% South East FY10 FY11 FY12 FY13 FY14 FY 15 Asia, 24% Exports (Rs Cr) Improved market share from last year 22 CEAT: Growing Profitable Market and Product Mix 5 yr CAGR % 15% Sales (Rs Cr) 2,850 5,508 5,755 Passenger Segment, “Strategic Focus Areas” Emerging 33% 25% Markets & 48% 52% Exports . Higher margin business . Contributes 52% sales for FY15 compared to Others 67% 33% in FY10 52% 48% . Growing at higher rate of 25% CAGR FY 10 % of Sales value FY14 FY15 EBITDA (Rs Cr) 311 658 681 Note : # 50% of CEAT Sri Lanka sales are considered 23 Zensar Technologies 2 www.zensar.com | © Zensar Technologies 2015-16 4 Zensar at a Glance 2,628 Cr* 265 Cr* 22.5% FY15 Revenue FY15 PAT Revenue CAGR over the past 5 years 220+ 8,174 Annuity customers Employees 29 13% Global Overall Attrition locations Best in Industry Acquired in August 2014 *in INR www.zensar.com | © Zensar Technologies 2015-16 25 The year that was… INR Cr FY15 FY14 13.5% YoY Revenue 2,628 2,316 growth Gross 779 720 Margin 29.6% 31.1% 364 340 EBITDA 13.9% 14.7% Double-digit 265 238 PAT profitability 10.1% 10.3% continued 26 www.zensar.com | © Zensar Technologies 2015-16 26 Client Mix Conscious efforts to increase deal size resulting in increased ‘Million Dollar’ customers Million Dollar Clients FY15 Million Dollar Clients trend 75 75 20 Mn Dollar+ 1 CAGR: 36.9% 60 10 Mn Dollar+ 3 52 5 Mn Dollar+ 9 45 40 1 Mn Dollar+ 75 30 FY13 FY14 FY15 Healthy pipeline of US$ 600 Mn+ across both ETS and IM business.