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  • ANNUAL INVESTOR CONFERENCE 2019

    1

  • 2

    The Macro Outlook – Undergoing a Change

    Over 70% of the world’s economies are expected to decline in 2019, led by the consistent decline projected for Advanced Economies. The Emerging Economies are expected to pick up the growth starting from 2020

    2.2%

    1.8% 1.7% 1.7%

    4.5% 4.4%

    4.8% 4.9%

    3.6%

    3.3%

    3.6% 3.6%

    1.0 %

    1.5 %

    2.0 %

    2.5 %

    3.0 %

    3.5 %

    4.0 %

    4.5 %

    5.0 %

    5.5 %

    2018 2019E 2020E 2021E

    Advanced economies Emerging market and developing economies World

    Source: “World Economic Outlook (April 2019)” released by International Monetary Fund

    Real GDP Growth

  • 3

    The Macro Outlook – Headwinds

    ▪ Escalating Trade Disputes – China , Iran. Divided Political scenario

    ▪ Falling levels of manufacturing and retail sales; US Trade tariffs

    ▪ Brexit stalemate. Impact across all EU economies

  • 4

    The India Story

    Real GDP Growth Rate

    Slew of measures anticipated from new government to generate growth.

    7.1%

    7.3%

    7.5%

    7.7%

    6.8 0%

    6.9 0%

    7.0 0%

    7.1 0%

    7.2 0%

    7.3 0%

    7.4 0%

    7.5 0%

    7.6 0%

    7.7 0%

    7.8 0%

    2018 2019E 2020E 2021E

  • 5

    The India Story – Possible Headwinds

    ▪ Volatile crude oil prices

    ▪ Liquidity Crunch

    ▪ Agri and Rural sector challenges

    ▪ Social Costs

    ▪ Global macroeconomic risks

  • 6

    RPG Group – How We Will Withstand the Challenges

    ▪ Healthy balance sheet and fundamentals

    ▪ Setting standards in Corporate Governance

    ▪ Core sector presence. Established players with track record

    ▪ Talent pool

  • 7

    RPG Group – How did we Fare?

    ▪ KEC - Successful scaling up of Railway and Civil businesses

    ▪ CEAT - Laying the capital expansion foundation for future growth

    ▪ Zensar - All the core engines firing in all the right ways. Digital Push

    ▪ RPG Life Sciences - Evolving in the dynamic and challenging environment

  • 8

    RPG Group Culture – Inspiring Innovation

    ▪ KEC – Innovation in tower design. Drones for transmission line stringing

    ▪ CEAT - Puncture Safe tyre, Milaze 1L kilometer tyre

    ▪ Zensar – ZenATS provides real-time asset tracking & allocation for enterprises

    ▪ RPG Life Sciences –Adopting sustainable practices in API business

  • 9

    Shareholder Wealth Creation

    KEC: 5.2x

    RPG LS: 4.1x

    Zensar: 4.8x

    CEAT: 11.7x

    BSE Sensex: 2.3x

    Group market cap ~ Rs 19,000 Cr

    -3.00

    2.0 0

    7.0 0

    12. 00

    17. 00

    22. 00

    Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19

    KEC CEAT Zensar RPG LS Sensex

  • KEC

    Annual Investor Conference June 12, 2019

    OHE Railway Project

    Transmission Line, SAE, Brazil

    Tallest Tower in Bangladesh – 184 metres

    Factory For A Reputed Automobile Manufacturer

  • Highlights For The Year 2018-19…

    11

    MULTI-LOCATIONAL

    MANUFACTURING

    8 Manufacturing facilities across India, Brazil and

    Mexico

    Manufactures Towers, Cables, Poles and Hardware

    Financial Highlights

    • Revenue crosses Rs 11,000 Crs

    • EBITDA margins at 10.5%; improved by 50bps over FY18

    • PAT closer to Rs 500 Crs mark at Rs 496 Crs

    • Closing Order Book at Rs 20,307 Crs; Y-o-Y growth of 17%

    • ROCE improves to 26.6% vis-à-vis 24.7% in FY18

    Non T&D Revenue share increases to 36% in line with our diversification strategy

    T&D Order inflows backed by buoyant international markets; Strong closing order book of Rs 15,000 Crs

    Working Capital and Borrowing levels normalized in Q4; Gross Borrowings at Rs 1,845 Crs – same level as FY18

    SAARC & Brazil - T&D, Railways & Civil continue to remain the Growth drivers …

  • Transmission & Distribution – Strong Orderbook Ahead

    12

    Order book +L1 of Rs 18,000 Crs plus to drive FY20 T&D growth

    Key Highlights

    • FY19 T&D Revenues of Rs 7,305 Crs

    • Significantly strengthened presence in SAARC with Market share of ~25%;

    • Expanded into 5 new countries including Nicaragua (Americas) & Papua New Guinea (Oceania)

    • SAE: Execution of all 3 EPC projects commenced

    • Widened Middle East portfolio from Abu Dhabi, Oman, Saudi to include Dubai, Jordan & Egypt

    • Substation footprint widened

    • Execution headwinds faced in private projects in India in FY19;

    220 kV Tower to GIS Substation, Khalste (Kargil)

  • Railways – Over 100% Revenue Growth Y-o-Y

    13

    Key Highlights

    • Key operational areas : Track doubling/tripling, Electrical work, Signaling & Telecom, New Lines

    • Order Book at Rs 5,000 Crs plus with a pan India presence in Conventional Railway contracts

    • Composite projects contribute ~70% to the Order Book

    • 1,850 Kms OHE done by KEC in FY19 – being 33% of 5,500 Kms OHE completed by Indian Railways

    Revenues:

    • Doubling Revenues for third consecutive year - nearing Rs 2,000 Crs mark

    Traction Substation work Sleeper Lifting work

    Major Bridge work at a Composite project

    210 446

    844

    1,918

    FY16 FY17 FY18 FY19

    9.1x

    Railways Business Revenue (Rs Crs)

  • Civil

    • Revenues doubled closer to Rs 500 Crs mark

    • Pan India presence with projects in Factories, Buildings

    • Deploying latest equipment and best in class Formwork technology for Silo construction

    • Client base expanded to 17 clients;

    • Marquee clientele in various sectors such as Automotives, Cement, Metals, FMCG, Residential, etc.

    • Fast track execution of projects; Use of digital technology to optimize work

    Cables

    • Revenue growth (Y-o-Y) of 17%

    • Higher share of Exports / EHV cables

    Smart Infra

    • Successfully taken off in first year of commercial operations

    • 2 order wins in Aurangabad and Bidkin Smart Cities aggregating to Rs 230 Crs

    Other Non T&D Businesses – Growth Momentum Continues

    14

    100 000+ Cubic meters of concreting

    5700+ Metric Tons of PEB erected

    2 000 000+ Square feet of industrial workshop

    Construction of a 140 m tall Preheater & 40 m wide Clinker Silo for a Cement plant

  • Growth Drivers For Next 3 Years

    15

    TRANSMISSION & DISTRIBUTION

    R

    A

    I

    L

    W

    A

    Y

    S

    C

    I

    V

    I

    L

    • SAARC: Bangladesh building national grid; Afghanistan rebuilding network; 3 yrs - USD 6.5 Bn opportunities

    • Brazil: Market size of USD 3-4 Bn in Brazil, keeping the EPC opportunities strong

    • India: Green Energy segment, Power for all & State T&D Capex to drive T&D growth

    • Strong Budgetary allocation continues: Rs 1,59,000 Crs for FY20

    • Target areas

    ✓ OHE & Conventional Railways

    ✓ Signaling & Telecom

    ✓ DFCC / Metros / RRTS

    • International markets

    • Ongoing focus on Factories & Buildings

    • Government contracts in commercial buildings, hospitals, etc

    • Airports

    • Capex light infrastructure – elevated corridors, station redevelopment, etc.

    The macro indicators listed above in addition to our existing order book to drive mid-term growth

  • CEAT

    Annual Investor Conference June 12, 2019

  • Overview

    17

    ✓ FY19 Sales at INR 6,985 Crore; 11.2% growth

    ✓ EBITDA at INR 663 Crore; margin at 9.5%

    ✓ PAT at INR 251 Crore; margin at 3.6%

    ✓ Debt / Equity ratio at 0.54x

    Financial Update

    CEAT became a

    $1 Billion Revenue Organization

    FY 19 Revenue Breakup by Product

    FY 19 Revenue Breakup by Market

    Note : Consolidated revenue breakup

    Truck and Buses, 31%

    2/3 Wheelers, 31%

    LCV, 12%

    Passenger Cars / UV, 13%

    Farm, 7%

    Speciality, 6%

    Exports, 14%

    OEM, 31% Replacement, 55%

  • Auto Sector Performance

    18

    7% 20%

    38%

    -3% -2% -6% 2%

    -3% 0% -2% -1% -3% 3%

    Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY19

    Passenger Vehicles (YoY growth per month)

    76%

    43% 42% 30% 30% 24% 25%

    6% -8% 2% -3% 3%

    18%

    Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY19

    Commercial Vehicles (YoY growth per month)

    17% 9%

    22%

    8% 3% 4%

    18%

    7% -2% -6% -4% -17%

    5%

    Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY19

    2-Wheelers (YoY growth per month)

  • Strategy

    19

    Global Reach

    Strong Brand

    OEM RelationshipsDifferentiated Product

    Extensive Distribution

    World Class R&D