Investor Presentation. January 2014

Transcription

1 Investor Presentation January 2014

2 Disclaimer THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE. Engineers India Limited (the Company ) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a further public offer of its equity shares of face value of Rs. 10 each ( Equity Shares ) through an offer for sale by Government of India through the Ministry of Petroleum and Natural Gas and has filed a draft red herring prospectus with the Securities and Exchange Board of India. The draft red herring prospectus is available on the website of SEBI at and the websites of the book running lead managers at and Investors should note that investment in Equity Shares involves a high degree of risk and for details relating to the same, see the section titled Risk factors of the draft red herring prospectus. This presentation is for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not constitute a recommendation by the Company or any other party to sell or buy any securities of the Company. This presentation and its contents are not and should not be construed as an offer document or prospectus. This presentation is intended only for the attendees of the presentation and may not be retransmitted or distributed by them to any other persons. By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitation and notifications and represent that you are a person who is permitted under applicable law and regulation to receive information of the kind contained in this presentation. This presentation and its contents are strictly confidential to the recipient and should not be further distributed, re-transmitted, published or reproduced, in whole or in part, or disclosed by recipients directly or indirectly to any other person or press, for any purposes. In particular, this presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation or the DRHP filed with SEBI, and if given or made, such information or representation must not be relied upon as having been authorized by us. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. Any failure to comply with this restriction may constitute a violation of applicable securities laws. This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Nothing in the presentation shall constitute and/or deem to constitute an offer or invitation to an offer, to be made to the Indian public or any section thereof, and this document and its contents should not be construed to be a prospectus in India. This presentation has not been and will not be reviewed or approved by regulatory authority in India or by any stock exchange in India. This presentation does not comply with the disclosure requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges. This presentation contains forward-looking statements, which are statements that address expectations or projections about the future, including but not limited to statements about the strategy for growth, product development, market position, expenditures and the financial results of the Company. Forward looking statements may be identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. Forward-looking statements are based on certain assumptions and expectation of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Company could differ materially from those projected or expressed in any such forward-looking statements. The Company assumes no responsibility to publicity amend, modify or revise any information, opinion expressed, or forward looking statements on the basis of any subsequent developments, information, events or otherwise. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of the management on future events. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice. None of the Company, Book Running Lead Managers, selling shareholder or any other persons that may participate in the offering of any securities of the Company shall have any responsibility or liability for any loss arising from this presentation, its contents or otherwise. This presentation should not be treated as advice relating to legal, taxation, financial, accounting or investment matters. By attending this presentation you (i) acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and of the risks and merits of any investment in the Shares, and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of Company s business, and (ii) agree to be bound by the foregoing terms and to keep this presentation and the information contained herein confidential. 2

3 Contents 1 Overview of Engineers India Limited ( EIL ) Page # 4 2 Key Investment Themes 15 3 Financials and Order Book Overview 28 4 Business Outlook and Strategy 36 3

4 1 Overview of Engineers India Limited ( EIL )

5 Company Background One of India s leading engineering consultancy and EPC companies Nearly five decades of experience on landmark projects with global energy majors Significant track record across entire oil & gas value chain including 10 green-field refineries, 39 oil & gas processing plants, 40 offshore process platforms, 42 pipelines and 7 petrochemical complexes Focused diversification into other sectors: Fertilizer and LNG Bina Refinery Marquee Projects BPCL Refinery, Kochi Non-ferrous metallurgy Infrastructure Strategic crude oil storage Nuclear and solar energy E&P Panipat Naphtha Cracker Unit Over 2,890 highly experienced professionals and technical workforce In-house and collaborative R&D support with 14 registered patents Expanding overseas presence in MENA and South East Asia Zero debt firm with track record of healthy earnings and consistent dividend payout Guru Gobind Singh Refinery, Bathinda 5

6 Evolution & Key Milestones Wholly owned Government of India (GoI) company Commenced first international assignment Entered Fertilizer sector Non-ferrous metallurgical sector Expansion in Hydrocarbons value chain Offshore Pipelines Onshore oil and gas Diversified into Infrastructure Commenced services in subsurface crude storages Entered into PSC with GoI for exploration (NELP IX) Overseas expansion in fertilizer Incorporated pursuant to a formation agreement between GoI and Bechtel Commenced work in the refineries segment Expansion to Petrochem with IPCL (now Reliance Industries Ltd) R&D centre in Gurgaon Listed on the BSE and NSE Accorded the Mini Ratna status Special interim dividend of 1000% Successful FPO of 3.36 Cr shares of Rs. 5 each Diversification into nuclear and solar Energy sector JV in Saudi Arabia 6

7 Service Offering - From Concept to Commissioning Process Design Engineering Procurement Pre-feasibility studies Technology and licensor selection Conceptual design & feasibility Process design package Residual engineering and FEED Detailed engineering Engineering for procurement Engineering for construction Supplier and contractor management Expediting and inspection Vendor development Project Management Commissioning Construction Management Integrated project management services with focus on cost, quality and schedule Pre-commissioning and commissioning assistance Safety audit Hazard and operability studies Risk analysis Materials and warehouse management Quality assurance and health, safety & environment Progress monitoring/ Scheduling Mechanical completion Site closure Specialized Services Certification Environment engineering Heat and mass transfer Plant operations and safety management Specialist materials and maintenance services Certification and re-certification services EIL subsidiary Certification Engineers International Limited (CEIL) Third party inspection 7

8 Service Offering - Modes of Contracts Managed Consultancy Contracts 1 Engineering, Procurement and Construction Management (EPCM) Services related to process design, detailed engineering, procurement, construction supervision through coordination of various suppliers and contractors and commissioning and pre-commissioning assistance 2 Front-end Engineering & Design (FEED) 3 Project Management Consultancy (PMC) Upstream process design, residual basic design and front-end basic engineering for complete definition of scope for selection of EPC contractor Comprehensive project management Services for the implementation of a project through EPC contractors Turnkey Contracts 1 Lump-sum turnkey ("LSTK") Fixed price contracts for Engineering, Procurement And Construction (EPC) Single-point responsibility for completion of a project within the agreed schedule at the awarded turnkey price Changes in scope of work are defined by change orders agreed by both parties 2 Open book estimate ("OBE") Cost plus contracts contract with a provision for conversion to LSTK Wide spectrum of service offerings 8

9 Lines of Business Oil & Gas Chemicals & Metallurgy Oil and Gas Processing Offshore & Onshore Refinery Strategic Storage, Terminals and Pipelines Petrochemicals Fertilizer Mining and Metallurgy Infrastructure Power City Gas Urban Development Water and Waste Management Solar Thermal Nuclear 9

10 R&D Achievements Established in 1988 as part of an initiative of Scientific Advisory Committee of the MoPNG for development of indigenous hardware and process scale-up capabilities Developed and commercialized over 30 technologies through in-house development and / or in collaboration with clients and reputed research institutions such as IOCL R&D*, IIP*, CPCL*, HPCL*. Some of the technologies developed include:- Refining CDU (Crude oil Distillation Unit), VDU(Vacuum Distillation Unit ), bitumen blowing, visbreaking, hydrotreating (naptha, kerosene / ATF and diesel), reformers and isomerization Oil and Gas processing Gas sweetening, gas dehydration, dew point depression, gas transportation, LPG and ethane/ propane recovery units Aromatics Naphtha splitter, benzene toluene extraction and fractionation and xylene fractionation 14 patents awarded and 15 pending applications Over the years, the R&D initiatives have enhanced EIL s capabilities in process design, heat and mass transfer, distillation processes and enabled EIL to offer end to end concept to commissioning services * IOCL - Indian Oil Corporation Limited; IIP - Indian Institute of Petroleum; CPCL - Chennai Petroleum Corporation Limited; HPCL - Hindustan Petroleum Corporation Limited 10

11 Select Ongoing Projects Hydrocarbon 6 MMTPA Integrated Refinery Expansion Project (IREP) at Kochi of Bharat Petroleum Corporation Ltd (BPCL) Refinery Wax unit of Numaligarh Refineries Ltd (NRL) Refinery expansion & up-gradation project for Mangalore Refinery and Petrochemicals Ltd (MRPL) 6 MMTPA capacity CDU-4 Project at Mumbai Refinery for BPCL Rehabilitation and adaptation of Algiers refinery refinery of SONATRACH Pipelines Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline Project (MBBVPL) for Gujarat State Petroleum Corporation (GSPL) & Gujarat India Transco Ltd. (GITL) Upgrading pump stations/ terminals of Naharkatiya-Barauni Crude Oil Pipeline for Oil India Limited Dabhol-Bangalore gas pipeline of total 1200 KMs project for GAIL (India) Ltd Mehsana-Bhatinda Pipeline Project of total 1600 KMs for GSPL Terminal & Storages Strategic Crude Oil Facilities in Rock Caverns for the Indian Strategic Petroleum Reserves Limited at Mangalore, Vishakhapatnam and Padur LNG terminal at Gangavaram port for Petronet LNG Development of port facilities for Ratnagiri Gas and Power Pvt Ltd for GAIL (India) Ltd Offshore/ Onshore Oil & Gas Enhanced oil recovery project of CAIRN India Offshore platform projects for Gujarat State Petroleum Corporation (GSPC) Western Onshore Redevelopment Project for Mehsana, Ankleshwar and Ahmedabad Assets of ONGC Habshan Acid Gas Flare Recovery Project for Abu Dhabi Gas Industries Ltd. Revamp of BPA/BPB platforms for ONGC 11

12 Select Ongoing Projects Others Petrochemicals & Fertilizers Dahej Petrochemical Complex for ONGC Petro-additions Ltd (OPaL) Assam Gas Cracker Complex at Lepetkata for BCPL Petrochemical expansion project at GAIL Vijaipur and GAIL Pata plants Butadiene extraction project at IOCL Panipat Facility to produce fertilizer products in Port Harcourt, River State, Nigeria ShahJalal fertilizer project for BCIC, Bangladesh Ammonia Plant in Indonesia for Panca Amara Utama (PAU) Mining and Metallurgy Second phase expansion of Bauxite Mines, Alumina Refinery for NALCO, Bhubaneswar Mahan Aluminum Smelter project, Madhya Pradesh for HINDALCO Aditya Aluminum Smelter project, Odisha for HINDALCO Fourth Stream Upgradation Project for Bauxite Mines and Alumina Refinery, Orissa for NALCO Infrastructure Canal, Pipeline and Pumping station works of Sardar Sarovar Narmada Nigam Limited (SSNNL) Data Centre of UIDAI at Delhi and Bengaluru for Unique Identification Authority of India (UIADI) Interceptor Sewer Project for the abatement of pollution in River Yamuna for Delhi Jal Board (DJB) Rajiv Gandhi Institute of Petroleum technology (RGIPT) at Rai Bareli and Sibsagar Power Nuclear: Nuclear Fuel Complex at Rawatbhata, Kota Solar: 125 MW Solar Thermal Power Project of Reliance Power Captive: Captive Power Plant for Paradip refinery of IOCL Turnkey Projects Coker Block for Resid Upgradation Project of CPCL, Chennai Butene-1 Project at Panipat Naphtha Cracker Complex for IOCL Onshore Gas Processing Complex at Kakinada for GSPC SPM, Pipeline and related facilities for MRPL, Mangalore Pipeline and South Jetty Facilities for IOCL Paradip Refinery PFCC, SRU and Polypropylene Projects of Phase III refinery project at Mangalore for MRPL 12

13 Select Awards and Accolades ( ) PMI Award-2012 Guru Gobind Singh Refinery project, Bathinda of HPCL-Mittal Energy Limited (HMEL) PMI Award-2010 Bina Refinery project of Bharat Oman Refineries (BORL) Best Project under 4th CIDC Vishwakarma Awards Euro-IV Upgradation project of Chennai Petroleum Corporation Limited (CPCL) Business Standard Star PSU of the year 2010 Award Shri A K Purwaha, C&MD, EIL received the award from Hon ble Prime Minister of India, Dr. Manmohan Singh Petrotech-2012 Special Technical Award in Greening of Oil and Gas Business Category India's first Indigenous Diesel Hydro-treating (DHDT) Technology unit jointly developed with IOCL and implemented in Bongaigaon Refinery Petrotech-2012 Special Technical Award in Project Management Category Guru Gobind Singh Refinery Project, Bathinda of HMEL Commendation Certificate of SCOPE Meritorious Award in Specialized Fields R&D, Technology Development and Innovation for Golden Peacock Award 2013 Golden Peacock award for sustainability Golden Peacock Award 2012 Special Commendation for the Golden Peacock Occupational Health & Safety Award ICC PSE Excellence Award 2013 For R&D, Technology Development & Innovation 13

14 Select Awards and Accolades ( ) BT Star PSU Excellence Award 2012 Excellence in Human Resource Management IPE CSR Award Best practices in Corporate Social Responsibility in Performance Excellence Award from Indian Institution of Industrial Engineering (IIIE) Financial and Operational Strength for the year SCOPE Excellence Award Excellence and outstanding contribution to the Public Sector Management in Miniratna category ICAI Award-2012 for Excellence in Cost Management Practices ICAI Award-2012 for Excellence in Cost Management Practices - 1st prize in the category of Public - Service Sector Large 12th ICSI National Award 2012 Excellence in Corporate Governance SKOCH Order of Merit Award Innovative Technology on Oxyenrich Process for Capacity Enhancement & Trouble Free Operation of Claus Sulphur Plant FICCI Chemical and Petrochemical Awards 2013 Process Innovator of the Year in Petrochemicals for Food Grade Hexane (FGH) Technology jointly developed by EIL & IOCL and Best Contribution to Academia for Wet Air Oxidation (WAO) Technology jointly developed by EIL & IIT Roorkee. Indian Chamber of Commerce PSE Excellence Award 2011 R&D, Technology Development & Innovation 14

15 2 Key Investment Themes

16 Investment Highlights 1 Presence across the Oil & Gas value chain 2 Operations in diversified sectors (Petrochemicals, non-ferrous, infrastructure ) 3 Increased focus in overseas geographies 4 Extensive track record and strong client relationships 5 Technology-driven integrated turnkey and total solutions consultancy services 6 Increased focus on diversification into emerging sectors 7 Management of the talent portfolio 8 Experienced management team 16

17 1 Presence Across the Oil & Gas Value Chain Offshore Oil & Gas Oil & Gas Transportation Onshore Oil & Gas Refineries Storage, Ports & Terminals Over 150 Well Platforms and 30 Process Platforms for ONGC* Offshore Platform Projects for the Deen Dayal Field Development Project of GSPC East Coast, India International Projects in Qatar, UAE Oil & Gas Exploration under NELP IX HBJ pipeline India s largest Gas Pipeline Network Jamnagar-Loni LPG Pipeline of GAIL (one of the world s longest) Strategic Pipelines for HPCL, BPCL, BORL, IOCL, HMEL, TAKREER*, ADNOC*, NPCC* Gas Processing Complexes at Hazira and Uran and the C2/C3 and LPG recovery units Gas Processing Complex of GSPC at Kakinada, India International Projects in Algeria and UAE Refinery projects aggregating over 150 MMTPA 10 Grass-root Refinery Projects in India Algiers and Skikda Refineries of SONATRACH, Algeria Services for refinery majors in MENA region like KNPC*, ORPC*, KPRL, BAPCO* Storage of Crude Oil in Underground Caverns - security initiative for Strategic Crude Oil Storage as part of the Integrated Energy Policy of GoI LNG Terminals regasification and downstream infra facilities for Petronet LNG, RGPPL*, Shell and SONATRACH * ONGC Oil and Natural Gas Corporation Limited; TAKREER - Abu Dhabi Oil Refining Company; ADNOC - Abu Dhabi for Abu Dhabi National Oil Company; NPCC - National Petroleum Construction Company, Abu Dhabi; KNPC - Kuwait National Petroleum Corporation; ORPC - Oman Refineries and Petrochemicals Limited ; BAPCO - Bahrain Petroleum Company; RGPPL - Ratnagiri Gas and Power Private limited Nearly five decades of experience in the Hydrocarbon space with a presence across the entire value chain 17

18 2 Operations in Diversified Sectors Petrochemicals Fertilizers Mining & Metallurgy Infrastructure Power zzzzzzzzzzzzzzzzzzzzz 7 out of the 8 mega Petrochemical Complexes in India Large petrochemical clients like GAIL, IOCL, IPCL* (now RIL), OPaL*, BCPL* and others Petrochemical projects in Middle East region for Kuwait Aromatics Company and BOROUGE Fertilizer complexes at Phulpur, Bhatinda, Panipat, Bharuch Ammonia plants at Kalol, Taloja Ammonia Urea complex at Nigeria for Indorama ShahJalal fertilizer project at Bangladesh for BCIC Focus on Naphtha/ Gas based fertilizer plants 29 large Non-ferrous Metallurgical Projects of Alumina, Aluminum, Copper, Zinc, Lead Titanium, Cadmium, Mica, Rock Phosphate, Graphite, Fluorspar, Limestone, and Lignite Large clients include NALCO*, INDAL*, HINDALCO, Sterlite, HZL*, NMDC*, HCL*, JSWAL*, GMDC* Modernization and redevelopment of Delhi & Mumbai airports Interceptor sewers for abatement of pollution in river Yamuna for Delhi Jal Board Focus on water, waste management and urban development Development and operation of new city gas distribution projects Thermal power plants for GAIL, OPGC* and Reliance Power (RPL) Nuclear power plants for NPCIL* and NFC* Solar thermal power project of RPL Thermal Focus on consultancy services for balance of plant Nuclear - Target strategic engineering consultancy opportunities; pursue collaborations with technology providers * IPCL - Indian Petrochemicals Corporation Limited; OPaL - ONGC Petro-additions Limited; BCPL - Brahmaputra Cracker and Polymer Limited; NALCO - National Aluminium Company Limited; INDAL - Indian Aluminium Company Limited; HZL - Hindustan Zinc Limited; NMDC - National Mineral Development Corporation Limited ; HCL - Hindustan Copper Limited; JSWAL - JSW Aluminum Limited; GMDC - Gujarat Mineral Development Corporation Limited; OPGC - Orissa Power Gas Company; NPCIL - Nuclear Power Corporation Limited; NFC - Nuclear Fuel Complex Establishing strong foothold across emerging sectors 18

19 3 Increased Focus in Overseas Geographies Sector Country Client Oil & gas processing UAE NPCC, ADCO Oil & gas processing Vietnam Petro-vietnam Pipelines UAE GASCO, TAKREER, NPCC, ADNOC Sector Country Client LNG Algeria Sonatrach Petrochemicals UAE BOROUGE, EQUATE Petrochemicals Malaysia M/s Vinyl Chloride (Malaysia) sdn. Bhd LONDON MILAN UAE SHANGHAI EIL international offices VENEZUELA ALGERIA GHANA NIGERIA MIDDLE EAST (UAE, Kuwait, Oman, KSA..) MALAYSIA VIETNAM KENYA INDONESIA Sector Country Client Refinery Algeria Sonatrach (Formerly NAFTEC) Refinery Oman Sohar Refinery Kuwait KNPC Refinery Indonesia WIKA Refinery Kenya KPRL Sector Country Client Fertilizers Nigeria Indo Rama Fertilizers Bangladesh BCIC Fertilizers Malaysia Non Ferrous Bahrain ALBA Petronas Fertilizer (Kedah) Sdn. Bhd. JV : JABAL EILIOT in Kingdom of Saudi Arabia WOS: EILAP in Malaysia 19

20 4 Extensive Track Record and Strong Client Relationships Refinery Projects including 10 Green-field Projects 37 Oil & Gas Processing Projects 7 Petrochemical Complexes 42 Pipeline Projects 40 Offshore Process Platforms 13 Ports & Storage Terminals BCPL BCIC 8 Fertiliser Projects 29 Mining & Metal Projects Infrastructure Projects INDAL Power / Captive Power Projects 17 Turnkey Projects 20

21 4 Track Record in Refineries & Petrochemicals Panipat Petro. Plant Milestones Guru Gobind Singh Refinery PUNJAB Panipat Refinery HARYANA Vadinar Refinery Koyali Refinery Pata Petro. Plant Guwahati Refinery Mathura Refinery Bongaigaon Refinery Barauni Refinery UP ASSAM Digboi Refinery BIHAR BCPL 19 out of 22 Refineries in India have EIL Footprints Worked on a combined refining capacity of more than 150 MMTPA (3 million BPD) in India Engineered 10 grass-root refineries Mumbai Refinery Mumbai Refinery Mangalore Refinery GUJARAT MAHAR- ASHTRA KARNATAKA MP Dahej Petro. Plant Nagothane Petro. Plant Bina Refinery ANDHRA PRADESH Manali Refinery WB Visakh Refinery Assam Petro. Plant Haldia Refinery Numaligarh Refinery Haldia Petro. Plant Involved in the establishment of 7 out of the 8 mega petrochemical complexes in India Currently executing two green field and one brown field expansion project Forayed into new areas such as underground caverns for storages Kochi Refinery TN Refinery Mega Petrochemical Plant Kerala Nagapattanam Refinery 21

22 5 Technology Driven Integrated Turnkey and Total Solutions Consultancy Services 1 Comprehensive technology related offering State of the art R&D centre at Gurgaon Technology driven organisation EIL has developed over 30 process technologies for the oil and gas processing, refineries and petrochemical industries Currently holds 14 live patents and has 15 pending patent applications relating to various process technologies Comprehensive environment engineering services 2 technology driven full range of services Comprehensive Hazop, Hazan, Risk and consequence analysis services Technology Licensing Services 1 2 Configuration and Feasibility studies Aromatic Extraction Visbreaking Delayed Coking Specialized Services 6 Integrated business 3 Process Design & Residual Engineering Light Naphtha Isomerization EIL Process Technologies Sulphur Recovery Commissioning Services 5 4 FEED LPG Sweetening 22

23 Thermal Power City Gas Distribution Solar Power Water and Waste Management Nuclear Power Gas based Fertilizer Projects Oil & Gas Exploration LNG 6 Increased Focus on Diversification into Emerging Sectors Participated in the NELP IX bidding along with four other consortium members Signed the PSC with GoI for two exploration acreages in 2012 Targeting upcoming LNG storage and regasification projects in India and related downstream infrastructures such as pipelines Targeting strategic engineering consultancy opportunities in the nuclear power sector Explore EPC opportunities in Gas-based fertilizer projects in India and internationally Feed conversion projects both for naphtha and FO/ LSHS based projects Implementation of solar thermal and photovoltaic power plants Target project opportunities under JNNSM scheme Focus on EPC and BOO projects Provide integrated solutions Focus on water desalination projects, municipal sewage recycling projects, industrial water, waste to energy projects Alliances with specialist consultants and contractors EPC for balance of plant Pursue strategic city gas distribution projects through equity investments to own and operate such networks PMC services for large power projects Evaluate strategic JV arrangements with other entities that are currently operating in the sector Driving growth by leveraging track record and capabilities into emerging sectors 23

24 7 Management of the Talent Portfolio Focus areas Policies designed to provide the human resources an enabling environment facilitating growth and rewarding them for contributions Training interventions at various levels for developing the domain expertise and enhancing managerial skills Comprehensive knowledge management infrastructure Employee centric HR policies reflected in lower attrition over years Employee attrition rate of 3.11 % in FY 13 and 2.11% as of Half Yearly FY14 Leadership development In June 2009, launched Aarohan, a leadership program designed to increase the leadership capabilities and competencies of our employees Leaders Groom Leaders program leverages on years of expertise of leaders and ensures that knowledge & skills of the senior level is not only upgraded but also disseminated Self- Reflection & Feedback Facets of LDP - Aarohan Building Individual Development Plans (ILDPs) Over 3,300* permanent employees, including more than 2,890* employees with technical and professional qualifications Learning through Workshops & Lectures Developmental Experience Through: Implementing Action Learning Projects (ALPs) Cascading Learnings Receiving Coaching Measurement & Tracking * as of September 30, 2013 EIL s HR initiatives to manage the diverse talent & business needs 24

25 8 Experienced Board and Leadership Team: Executive Directors Ashok K. Purwaha Chairman & Managing Director Ram Singh Director (Finance) Deepak Moudgil Director (Projects) Sanjay Gupta Director (Commercial) Veena Swarup Director (HR) Ajay N Deshpande Director (Technical) More than 36 years of experience in the hydrocarbon sector Served with ONGC (more than 8 years) and with GAIL India Limited for over 24 years, last position held was as Director (Business Development) on board of GAIL Led Mahanagar Gas Limited, Mumbai (a JV of GAIL India Limited and BG Group, UK) as MD for 5 years 32 years of experience in finance and cost accounting Held positions with SAIL, BPCL, Petroleum Planning and Analysis Cell of MoP&NG, and the Oil Coordination Committee Conferred with Business Today Best CFO of a PSU (Mid size) Award-2013 and India CFO Award for Excellence in Risk Management by IMA India Over 38 years of experience in construction and projects Successfully led EIL s diversification into infrastructure sector He has worked in various departments of EIL, including construction, administration, marketing and projects 33 years of experience in implementation of mega projects in refineries, pipelines and petrochemicals Successfully implemented LSTK Project for PFCCU Project at MRPL He has been entrusted the task of leadership for formulation of the strategy group responsible for EPC initiatives as well as business growth initiatives within the Company in the past couple of years 30 years of experience in Human Resource management in the petroleum and natural gas sector Prior to joining the Company, Ms. Swarup was with ONGC since 1983, where she headed the Performance Management and Benchmarking Group, which steers the performance contracts and service level agreements between board level and unit chiefs Headed the SAP-HR Project for ONGC 33 years of experience in EIL spanning Oil & Gas, Refining & Petrochemicals segments He has co-authored a total of four patent applications on behalf of the research and development of the Company Currently responsible for functioning of Divisions in the Technical Directorate of EIL 25

26 8 Experienced Board and Leadership Team: Non-Executive Directors R. N. Choubey Nominee Director Government director nominated by MoPNG Officer of the Indian Administrative Services, currently holding post of Director General, Directorate General Hydrocarbons Previously held positions of Principal Advisor, Telecom Regulatory Authority of India, Joint Secy in the Ministry of Finance, Development Commissioner (Handlooms), Ministry of Textiles and as Director on the Board of BPCL Dr. Archana Saharya Mathur Nominee Director Government director nominated by MoPNG Joined the Indian Economic Service in 1982 During 30 years in the government service, served in various economic ministries of the Government of India Aditya Jain Independent Director Chairman and editorial director of IMA India, a business information company established in 1994 Advisor to several MNCs on India strategy Successfully handled assignments in public policy, entry strategy planning, location audits, competitor analysis, scenario planning and JVs Bijoy Chatterjee Independent Director Served as Secretary/Additional Chief Secretary/Principal Secretary of several departments in the Government of West Bengal Served as Joint Secretary, Cabinet Secretariat, Government of India and supervised work relating to the departments of personnel and training, agriculture, feed and public distribution, consumer affairs, environment and forests, finance, commerce, industry, law and chemicals & fertilizers Served as the managing director of the WBPDCL and as chairman of the WBTDCL Dr. J. P. Gupta Independent Director Published/presented over 120 research papers and authored/edited 4 books Received awards from the Institution of Chemical Engineers (U.K.) and the Indian Institute of Chemical Engineers Currently serving as Director, Rajiv Gandhi Institute of Petroleum Technology, Rae Bareli 26

27 8 Experienced Board and Leadership Team: Non-Executive Directors Dr. R. K. Shevgaonkar Independent Director Worked as Vice Chancellor of University of Pune and presently holding the post of Director of IIT Delhi He has been a visiting professor at University of Lincoln, USA; ETH, 153 Zurich, Switzerland; and ISEP Paris, France Has published more than 150 papers in international journals and conferences Dr. Christy Leon Fernandez Independent Director 39 years of work experience in the Indian administrative sector, including ten years in positions of a joint secretary and above in the Government of India and Government of Gujarat Handled the administrative divisions in the central ministries, dealing with several maharatna, navratna and mini ratna companies such as IOCL, HPCL, BPCL, MMTC, EPCGC, ITDC, GSFCL, etc Mr. Dhani Ram Meena Independent Director 32 years of experience and has been associated with the legal service in the Ministry of Law and Justice (Department of Legal Affairs) Served as the union law secretary, monitoring the functioning of the department of legal affairs and functioned as an arbitrator and appellate authority and disposed of more than 200 cases as the law secretary Dr. Vizia Saradhi Vakkalanka Venkateshwar Independent Director Over 37 years of experience Previously worked with Hindustan Petroleum Corporation Limited and held various positions of responsibilities in the organization Presently is a senior advisor to the University of Petroleum and Energy Studies, Uttarakhand EIL s Board of Directors comprise of qualified & reputed individuals with long-standing experience across industry verticals 27

28 3 Financials and Order Book Overview

29 Order Book With Focus on High Margin Consultancy Business Total Order Book: INR 32,234 mn* * On a consolidated basis as on September 30, 2013 Turnkey 46% Consultancy and Engineering 54% Turnkey Coker block for Resid Upgradation Project of CPCL, Chennai Pipeline and south jetty facilities for IOCL Paradip refinery Onshore gas processing complex at Kakinada for GSPC SPM, Pipeline and related facilities for MRPL, Mangalore PFCC, SRU and Polypropylene projects of Phase III refinery project at Mangalore for MRPL Butene-1 project at Panipat for IOCL Consulting Fixed Price Contracts Integrated refinery expansion project (IREP) at Kochi of Bharat Petroleum Corporation Ltd (BPCL) Dahej Petrochemical complex of OPaL Interceptor project of DJB Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline Project (MBBVPL) for GSPL & Gujarat India Transco Ltd. (GITL) Mehsana-Bhatinda pipeline project of total 1600 KMs for GSPL Consulting Cost / Rate Reimbursable Contracts Petrochemical expansion project at GAIL Vijaipur and GAIL Pata plants Western onshore redevelopment project for Mehsana, Ankleshwar and Ahmedabad Assets of ONGC Assam gas cracker complex at Lepetkata for BCPL 29

30 Financial and Operating Track Record Consultancy & Engineering Revenue (INR mn) 1 Turnkey Projects Revenue (INR Mn) 1 8,442 10,702 11,510 12,274 12,565 5,724 7,079 9,385 16,953 24,915 12,703 3, H H Revenue Segmentation Total Income and Growth (INR mn) 2 Consulting and Engineering Turnkey 39,365 46% 47% 60% 67% 50% 38% 17,063 21,903 29,872 27,734 54% 53% 40% 33% 50% 62% 10, H H Note: All figures have been taken on a restated consolidated basis; 1 Segment wise Revenue does not include Other Income; 2 Total Income includes Other Income Consistent growth in Consulting & Engineering Segment 30

31 Financial and Operating Track Record EBITDA** Performance (INR mn)* 7,366 26% 6,614 5,789 22% 5,175 23% 23% 22% 20% 3,458 2, H EBITDA (INR mn) EBITDA Margin (%) * Note: All figures have been taken on a restated consolidated basis ** EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization (does not include Other Income) Strong EBITDA Margins during FY09 to FY13 31

32 Financial and Operating Track Record Consultancy & Engineering Segment Profit (INR mn)* Turnkey Projects Segment Profit (INR mn)* 4,417 5,019 44% 5,437 44% 5,167 11% 12% 10% 9% 3,294 41% 41% 5% 1,972 2,454 7% 39% 2,064 1,008 1,105 36% H Profit (INR mn) Profit (%) H Profit (INR mn) Profit (%) * Note: All figures have been taken on a restated consolidated basis Consistently Healthy Profit Margins in Both Segments 32

33 Financial and Operating Track Record Earnings per Share EPS (INR)* Return on Net Worth** (%) % 33% 19,743 23,145 25, ,815 15,652 33% 25% 12, % 9% H EPS (Basic and Diluted) H Net worth (INR mn) Return on Networth (%) * Note: All figures have been taken on a restated consolidated basis **Return on Net worth is Shareholder s Funds excluding revaluation reserve/ Capital grant received against fixed assets Consistently delivering robust returns to shareholders 33

34 Strong Dividend Payout History Dividend Distribution (INR mn)* 6,967 1,060% During the Year 2:1 bonus shares were issued. Dividend is based on enhanced capital after bonus 1,956 2,350 2,357 1, % 38% 154% 100% 120% 120% 38% 37% 41% Gross Dividend incl. tax (INR) Dividend Payout including Dividend Tax (%) Dividend Rate (%) * Note: All figures have been taken on a consolidated basis Consistent Dividend Track Record 34

35 Shareholding Pattern Shareholding pattern of the Company as on December 20, 2013 FII 5.6% Others 7.0% Insurance Companies 4.9% Financial Institutions/ Banks 0.7% Mutual Funds/ UTI 1.4% Promoters 80.4% Strong FII presence amongst Institutional Shareholding 35

36 4 Business Outlook and Strategy

37 (Billion toe) Energy and Hydrocarbons Global Energy Demand to Grow By 4Bn toe over next 2 Decades Demand 2011 OECD Non- OECD Investments of US$ 224 Bn expected in Indian Oil & Gas Space Level Tight Other Supply Other Shale 2011 Oil Natural Gas Coal Renew.* Hydro Nuclear Nonfossil in US$ Bn ( ) Sector Sustained Focus on Hydrocarbon Sector in India Total 12 th Plan Outlay (INR Bn) Exploration & Production 2,837 Refinery & Marketing 1,056 Petro-Chemical 173 Total 4,066 Refineries Twelfth plan target Expansion of existing refineries by 50.6 MMTPA Commissioning of 30 MMTPA of new grassroot refineries Capacity to reach 50 MMTPA by from MMTPA presently China India Middle East Africa Latin America Oil Refining NG Transmission&Dist. LNG LNG regasification Petrochemicals Fertilizers Ethylene capacity estimated to increase from MMT in to MMT in Propylene capacity estimated to increase from MMT in to MMT in Gas based urea capacity to increase from 24 MMTPA at present to 32 MMTPA by Emphasis on conversion of present naphtha/fuel and oil based plants to use of natural gas as feed stock. Source: BP Energy Outlook Jan 2013, World Energy Outlook, 2010 and 2011 Source: 12th Five Year Plan, Planning Commission 37

38 Infrastructure and Non Ferrous Metallurgy Planned Infrastructure Expenditure (segment wise break up) Power Capacity Addition During 12th Five Year Plan Water Supply & Sanitation 4% Irrigation 9% Railways 8% Electircity 31% (MW) 69,800 2,540 10,897 5,300 30,000 1,18,537 Telecommunications 26% Roads and Bridges 12% Approx $ 1 trillion projected investment in infrastructure in 12th Five year plan Water Requirement For Various Sectors Coal Gas Hydro Nuclear Renewables Total Renewables include 15,000 MW wind, 10,000 MW solar, 2,100 MW small hydro and the balance primarily from bio mass Non-Ferrous Metallurgy Water Demand in km³ (or bcm) 1, , , MMTPA of Aluminum and 8.7 MMTPA of Alumina capacity addition envisaged in 12th Five year plan Copper demand is projected to grow 8% till is projected at GDP HCL, Birla, Sterlite have indicated expansion plans of production capacities in the coming five years to meet the concentrate by producing 1.34 million tonnes at the end of Irrigation Drinking Water Industry Energy Others Source: 12th Five Year Plan, Planning Commission 38

39 Strategy for Future Growth Road map to become a world class globally competitive EPC and total solutions company Focus on core strengths - design, engineering and construction Pursue EPC contracts Bid for large scale projects Strengthen presence in Middle East, North Africa and South East Asia creation of engineering hub Formulate entry strategy for Latin America and South Asia Leverage track record for related diversification Target specific project segments and industries where EIL has a competitive advantage Technology and knowledge development Strategic alliances for diversification JVs and consortium for EPC and overseas Long term relationships / MOUs with clients Focus on technology and alliances Establish alliances and share risks with strategic partners with complementary resources, skills and strategies Develop relationships/ JVs with other EPC players for bidding in large projects Strategic relationships Selectively form alliances with key equipment manufacturers Expand international operations Selectively diversify Maintain leadership 39

40 Thank You