KEC International LimitedKEC International Limited

Corporate PresentationCorporate PresentationJune 2010

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. The

company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual

results, performance or achievements, could thus differ materially from those projected in any such forward-

looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-

looking statements, on the basis of any subsequent developments, information or events, or otherwise.

While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the

company does not warrant that it is complete comprehensive or accurate or commit to its being updated No partcompany does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part

of the information provided herein is to be construed as a solicitation to make any financial investment and is

provided for information only. In no event shall the company be liable for any damages whatsoever, whether

direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those

res lting from loss of profit loss of contracts good ill data information income e pected sa ings or b sinessresulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business

relationships arising out of or in connection with the use of this presentation.

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Vision statement

T b l b l l d i P To be a global leader in Power Transmission EPC business and

a significant player in other related businesses providing related businesses, providing

superior value to all stakeholders

3

A leading member of the RPG Group

4

RPG: well diversified multi-national conglomerate

8 Business sectors I 20+ companies I 40,000+ employees I 400,000+ shareholders5

KEC: a significant value driver for the Group

(Rs. Crores)

Revenues (FY`10)

EBIDTA (FY`10)

Net Profit (FY`10)

**Current Market cap

Promoter Holding

Institutional Holding

KEC International 3,907 406 189 2,520

42% 45%

CESC 3,450 900 433 4,610

52% 37%

CEAT 2,560 303 165 440

48% 31%

Phillips Carbon Black 1,350 191 123 520

50% 19%1,350 191 123 520

Harrisons Malayalam* 241 27 13 210

50% 11%

Zensar Technologies 950 170 127 630

52% 24%

RPG Life Sciences* 51% 16%

* YTD Dec FY`10

RPG Life Sciences* 118 23 7 110

51% 16%

Saregama India* 74 11 1 110

53% 34%

6

** Estimated market capitalisation as of May 25, 2010

KEC: a significant value driver for the Group

(USD Million)

Revenues EBIDTA Net Profit **Current Promoter Institutional Revenues (FY`10)

EBIDTA (FY`10)

Net Profit (FY`10)

Current Market cap

Promoter Holding

Institutional Holding

KEC International 870 90 42 561 42% 45%

CESC 768 200 96 1,026 52% 37%

CEAT 570 67 37 98 48% 31%

Phillips Carbon Black 301 43 27 116 50% 19%

Harrisons Malayalam* 54 6 3 47 50% 11%

Zensar Technologies 212 38 28 140 52% 24%

RPG Life Sciences* 26 5 2 24 51% 16%

* YTD Dec FY`10

Saregama India* 16 2 0 24 53% 34%

7

** Estimated market capitalisation as of May 25, 2010

Company profile

8

Company overview

» Leading transmission & distribution EPC company in the world

» End to end presence in every aspect of power supply chain, post

generation transmission Line overhead & underground distribution generation - transmission Line, overhead & underground distribution,

substations, supply of towers & cables

» Major player in telecom & railways infrastructure EPC business

» Multi-location tower testing facilities

» Provider of design solutions for substations

» Global footprint - client base spread over 40 countries

» Currently executing projects in over 20 countries

» Strong presence in India, South Asia, Middle East, Africa & Central Asia

» Well balanced and diversified order book Well bala ced a d d ve s ed o de boo

» Listed on the BSE (code: 532714) and NSE (code: KEC)

» 2009-10 financial summary:

S l R 39 1B (US $870 M )› Sales: Rs.39.1Bn (US $870 Mn)

› PAT: Rs.1.9Bn (US $42 Mn)

9

Historical milestonesRPG C bl ith KEC

2007

2010

Merger of RPG Transmission Limited and NITEL. T l b i t t d

RPG Cables merges with KEC; Largest tower Testing Station (1,200 KV) inaugurated in Nagpur,

First 1200 KV tower tested

2007Telecom business started

First 765KV tower project 1999

1975

1982

1984

Taken over by RPG group

Name changed to KEC International Limited

1961

1968

1975

Full turnkey transmission line project awarded in Sudan

First 400KV line in India successfully completed

1945

1960

1961

First international order received from New Zealand

First Indian company to get a Railway Electrification order

10

Kamani Engg. Corp. established for manufacture, enameling and trading for Hollowware1945

Business units

Power transmission

Distribution & design Cable Railways Telecom

Power transmission

S. Asia:N V l

S. Asia:N V l

Anubrata Bh h

Nikhil GuptaSanjay

Chandra Arvind Sharma

International:Vi l K j i lInternational:Vi l K j i l

BUSINESS HEADS

• Turnkey • Turnkey • Substation• Substation • Power & • Power & • Railway • Railway • Telecom • Telecom

N. VenugopalN. Venugopal BhattacharyaN l Gupta Chandra Sharma

• Turnkey • Turnkey

Vimal KejriwalVimal Kejriwal

transmission

lines upto

1200KV

• Tower testing

transmission

lines upto

1200KV

• Tower testing

• Distribution

• Design

services

• Distribution

• Design

services

control,

telecom and

instrumenta-

tion cables

control,

telecom and

instrumenta-

tion cables

electrification

• Earthwork

• Bridgework

electrification

• Earthwork

• Bridgework

towers

• SCADA

• OPGW

N k

towers

• SCADA

• OPGW

N k

transmission

lines upto

800KV

• Tower Supply

transmission

lines upto

800KV

• Tower Supply • Tower testing

upto 1200KV

• Tower testing

upto 1200KV• Balance of

plant

• Balance of

plant

tion cables

• Top 3 in EHV

cables

tion cables

• Top 3 in EHV

cables

• Platform

Construction

• Track laying

• Signaling

• Platform

Construction

• Track laying

• Signaling

Network

• Hotline

stringing

Network

• Hotline

stringing

• Tower Supply

• Emergency

Restoration

Services

• Tower Supply

• Emergency

Restoration

Services

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• Signaling• Signaling

Highly experienced team

RAMESH CHANDAKMD & CEO

VIMAL KEJRIWAL NIKHIL GUPTAN. VENUGOPALED SOUTH ASIA

ED - INTERNATIONAL ED – RPG CABLESED - SOUTH ASIA

A BHATTACHARYACE – DISTRIBUTION & DESIGN SVCS.

SANJAY CHANDRACE – RAILWAYS

ARVIND SHARMACE – TELECOM

VARDHAN DHARKARCFO

YOGESH GAUTAMVP – HR PROJECTS

RAJ KUMAR GUPTAVP – SOUTH ASIA PROJECTS

AKHIL SAXENAVP – SUPPLY CHAIN

12V. BALASUBRAMANIAMVP – INTL. PROJECTS

DEEPAK LAKHPATIVP – ENGINEERING

VASANT PANDITVP – MKTG, RPG CABLES

K. RAMKUMARVP – SPECIAL PROJECTS

Projects in every corner of the world

Turnkey projects Tower supply projects

1 Afghanistan* 7 Canada 13 Indonesia 19 Kuwait* 25 Mozambique* 31 Philippines 37 Syria

2 Algeria* 8 Chad* 14 Iran 20 Laos 26 Namibia* 32 Peru* 38 Tajikistan*

3 Argentina 9 Egypt* 15 Iraq 21 Lebanon 27 Nepal 33 Saudi Arabia* 39 Thailand

4 Australia 10 Ethiopia* 16 Jordan 22 Libya* 28 New Zealand 34 South Africa 40 Tunisia

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* Indicates current projects

4 Australia 10 Ethiopia* 16 Jordan 22 Libya* 28 New Zealand 34 South Africa 40 Tunisia

5 Bangladesh* 11 Ghana* 17 Kenya* 23 Malaysia 29 Nigeria* 35 Sri lanka 41 UAE*

6 Brazil 12 India* 18 Kazakhstan* 24 Mali* 30 Oman* 36 Sudan 42 USA

43 Vietnam

44 Zambia

Tower testing & project management capabilities

BUTIBORI TESTING STATION

» Highest–capacity tower testing station in the world at Butibori

TOWER TESTING PROJECT MANAGEMENT

» Currently executing more than 100 projects station in the world at Butibori,

Nagpur

» Sophisticated test station with SCADA and PRFIBUS system controls

projects

» Successful projects in diverse terrains:

› Deserts: UAE, Algeria, Egypt, India, Saudi Arabia

M t i I di L b M l i » Capable of testing towers upto

1,200KV, guyed towers upto 765 KV and monopoles of 400 KV

» Three other tower testing stations -

› Mountains: India, Lebanon, Malaysia, Mozambique

› Frosty conditions: Kashmir, Afghanistan, Kazakhstan (-40°)

Rivers: Brahmaputra Nile GangesThree other tower testing stations Jabalpur, Jaipur, Vashi already

» Over 2,200 tower tests till date

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› Rivers: Brahmaputra, Nile, Ganges

› Challenging locations: Afghanistan, Iraq

» 69-strong fleet of TSE equipment

Track record of proven successes

UAE ETHIOPIA TELECOM TOWER INDIAINDIA

LIBYA

400 KV D/C Tower for several countries – Ethiopia, Libya, UAETelecom Towers for various operators in India & abroad

15

Track record of proven successes (cont’d.)

AFGHANISTAN SAUDI ARABIA KAZAKHSTAN

Working under extreme conditions: 268km access road in Saudi Arabia 40˚C temp in Working under extreme conditions: 268km access road in Saudi Arabia, -40 C temp in Kazakhstan, war-torn Afghanistan

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KEC Training Institute

BUTIBORIBUTIBORI

» New training institute with modern facilities for residential and non » New training institute with modern facilities for residential and non residential training set up in Butibori, Nagpur

› Availability of skilled and capable manpower in power sector across various countries in the world is a concern

With th i t iti i th I di d Gl b l T&D › With the immense opportunities in the Indian and Global power T&D industry, KEC recognizes it as one critical factor of success in this new decade

› Objective is to create a large pool of supervisory talent for T&D industry and train them in the latest technology and techniques in transmission and train them in the latest technology and techniques in transmission

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Key success factors

Diversified worldwide client b d b t

Strong prequalification Status

base and robust order backlog

Excellent vendor relationships & volume

based procurements

The

d

Large capacity for tower & cablesmanufacturing & supply with

ISO 9001 | ISO 14001 | OHSAS 18001

Six decades of experience working

in all types of terrains

advantage

State of the art designing capabilities

Dedicated, skilled work force with cross country

Diversified portfolio:

Transmission, Overhead & Underground

designing capabilities yproject execution

capability

U gDistribution, Telecom & Railways

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5-year financial summary

Rs. Crores USD MillionREVENUES

EBIDTAEBIDTA

PAT

19

FY 2010 full year financial summary

FY 2010 FY 2009

Rs Cr US $Mn % MarginYoY

growth Rs Cr US $Mn % MarginRs. Cr. US $Mn. % Margin growth Rs. Cr. US $Mn. % Margin

Sales 3,907 870 14.0% 3,429 763- - -

Raw Material 2,013 448 1,976 440

Other Direct Cost 958 213 575 128

Total Direct Cost 2,971 661 2,550 568

Employee Cost 169 38 142 32

Other Expenditure 362 81 435 97Other Expenditure 362 81 435 97

EBITDA 407 91 10.4% 34.9% 302 67 8.8%

Depreciation 27 6 23 5

Interest 86 19 100 22

PBT 293 65 179 40

Tax 104 23 62 14

PAT 189 42 4.8% 61.9% 117 26 3.4%

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Shareholding pattern

Major institutional shareholders % share

Reliance Capital 4.71%

LIC of India 4.31%

HDFC Infrastructure Fund 2.10%

HDFC Prudence Fund 2.01%

SBI Mutual Fund 1.65%

Tata Infrastructure Fund 1.50%

Copthall Mauritius Investments 1.26%

» Number of shares: >43,000

» Promoter shareholding currently at 42%

» DII/FII forms largest section of shareholders

21

Notable recent wins

Value (USD Mn) Client Name Country Job Description

15 different lines of S/C and D/C for 90 The Societe Tunisienne De

E’lectricite Du Gaz ( STEG) Tunisia15 different lines of S/C and D/C for

voltage level 150 kV, 225 kV and 400 kV

29 Indian Railways India Railway Civil Infrastructure, and Signaling & Telecom orders

24 KRIBI Power Development Company Cameroon 225 kV D/C, 100 km transmission

line on turnkey basis

21 PGCIL India 400 kV D/C transmission line on turnkey basis

18 PGCIL India 765 kV S/C transmission line on turnkey basis

16 Eskom Holdings Limited South Africa 765 kV S/C, 159 km, transmission line on turnkey basis

11 WBSETCL India 132 kV D/C transmission line on turnkey basis

10Ministre De L’Energie Et De

L’Eau (Edm) Mali 225 kV S/C, 136 km, transmission line on turnkey basis

22

Order book status and breakdown

USD MnINR CroresYOY ORDER BOOK GROWTH

BREAKDOWN: SBUBREAKDOWN: GEOGRAPHY

23

Opportunities & challenges

» Strong order book with well balanced geographical and business spread

» Delay in Government spending on power

CHALLENGESOPPORTUNITIES

geographical and business spread

» Increased spending on Transmission in Middle East, Africa and Africa; opportunities in countries where KEC not yet present

power

» Volatile commodity prices (steel, zinc, aluminum, cement)

» Volatile US dollar

» PGCIL spending on track; SEBs picking up

» Additional allocation to APDRP & RGGVY to intensif Distrib tion gro th

» Over capacities & competition from new players

» Availability of quality manpower to t t th i b ito intensify Distribution growth

» Cable opportunities in underground cable laying and export market through KEC’s International Division

cater to growth in business

» With the advent of 3G, large scale opportunities for telecom in the offing

» Building PQs to participate in the large Railway projects announced by the y p j yGovernment

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Awards & recognition

EEPC India Gold Trophy for Top Exporter Award

for 2006-07 & 2007-08 in Merchant Exporter Category (Regional)

for 2007-08 in Merchant Exporter Category (All India)for 2007-08 in Merchant Exporter Category (All India)

Maharashtra State Top Exporter Recognition

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for 2006-07 & 2007-08 in Merchant Exporter Category

Strategic Business Units (SBUs)

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Transmission & Distribution: overview

» India› PGCIL - tenders to be floated for about

R 5 000 (USD 1b ) i th 11th

TRANSMISSION: India/ South Asia

» 11th Five Year Plan» Continue with APDRP* scheme to reform

DISTRIBUTION

Rs.5,000 crs (USD 1bn) p.a. in the 11th

Five Year Plan› State Electricity Boards - coming up

with investments in 400KV Transmission lines T t l XIth l tl f T i i

the urban distribution and reduce the AT&C losses across India to less than 15% levels

» Continue with RGGVY* to achieve 100% village and household electrification, to

› Total XIth plan outlay for Transmission Rs.140,000 crs ( USD 28bn) [Central Rs.75,000 crs., States Rs.65,000 crs.]

» Nepal / Bhutan/ Bangladesh/Sri LankaMid i / ll i j t b i

achieve `Power for all by 2012' National Electricity Policy target

» APDRP* » Rs.40,000 crs (USD 8bn) to be invested in

› Mid size/ small size projects being floated

TRANSMISSION: International

, ( )transmission and distribution

» RGGVY*: Power for All by 2012› Electrification of villages: Outlay Rs.

24 000 crs (USD 4 8bn) & Electrification » IEA estimates USD 6.1 trillion of

investments in T&D sectors during 2005-2030 (transmission USD1.8tn, distribution USD4.3tn)

24,000 crs (USD 4.8bn) & Electrification of all rural households: Outlay Rs.16,000 crs. (USD 3.2bn)

» Large scale opportunities in Africa and Middle East

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» India, Middle East and Africa to account for upto 18% of that spend

Middle East

APDRP: Accelerated Power Development Reforms Programme

RGGVY: Rajiv Gandhi Grameen Vidhyootikaran Yojana

Transmission & Distribution: client list

Afr

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Afr

ica

Mid

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East

Mid

dle-

East

orth

m

eric

aor

th

mer

ica

CIS

CIS

N AmN Am CC

th

st ath

st a

So

uEa

sA

si

Sou

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28

Asi

a/

Indi

aA

sia/

In

dia

Transmission & Distribution: market players

INDIA ASIA PAC EUROPE KEC Hyundai Inabensa Kalpataru Harbin Power Cobra Jyoti HG Power Isolux L&T Hyosung Power Elecnor Gammon Viscas Electromontaz Gammon Viscas Electromontaz Tata Projects Xlan Energoinvest Isolux SAG Inabensa AFRICA ETDE Cobra Opti Power ELTEL I Comm Kahrif Aster Karakib MIDDLE EAST EMCO El-Sewedy NCC Bajaj Hidelco ETA Deepak Cables Elject Gulfar p j fEMC MEEDCO Best & Crompton TURKEY SPIC Emtamitas

Sa-Ra STFA

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STFA

Tower manufacturing & design capabilities

BUTIBORI MUMBAI

» Manufacturing plants at Jabalpur, Jaipur and Nagpur for

» Strong team of over 100 design experts

MANUFACTURING DESIGN

Jaipur and Nagpur for transmission & telecom towers

» ISO 9001 | ISO 14001 I OHSAS 18001 certified to give world class manufacturing quality

experts

» Design facilities equipped with latest software like BOCAD, PLS Tower, PLS CAD, Google Earth

» Fully equipped to provide » Manufacturing Capacity

Owned :151,000 MT Value Added Partners : 60,000 MT

» Experience of supplying

y q pp pcomputerised engineering solutions, 3D analysis and design for optimising steel usage

» Providing substation design solutions to clients in the US» Experience of supplying

transmission line towers to developed markets like USA, Canada & Australia

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solutions to clients in the US

Cable

» Around Rs. 77,000 crs. (USD15.4bn) market opportunity in India based on

t 11th Pl ti t

OVERVIEW CLIENTS

current 11th Plan estimates

› Cable opportunities to expand due to increase in underground cable laying projects

With 3G in the offing demand for › With 3G in the offing, demand for telecom optical fibre cables to go up

› Value additions to KEC distribution division by sourcing cable products internally

MARKET PLAYERS

» KEC’s international SBU to leverage its reach for export of cables to various countries in Middle East and Africa

MARKET PLAYERS

KEC (RPG Cables)Universal Nexans, France

INDIA INTERNATIONAL

,Finolex Prysmian, ItalyDiamond General Cables, USAKEI J Power Systems, JapanPolycab Brugg, SwitzerlandNICCO Southwire, USA

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Havells NKT Cables, GermanyTorrent LS Cable, KoreaCCI Taihan, Korea

Cable manufacturing facilities

» Installed capacity: 1,000kmTHANEHIGH TENSION POWER CABLES

» Leading manufacturer and pioneer in introducing XLPE cables in India

» Installed capacity: 10,000km» Enjoys cheapest power tariff

SILVASSALOW TENSION POWER CABLES

and sales tax benefits

J ll fill d t l 1 2 CKM MYSORE

TELECOM & RAILWAY CABLES

» Jelly filled telecom: 1.2 mm CKM» Optic fibre cables: 0.36mm CKM» LT power cables: 5,000km» Railway cables: 1,000km

MYSORE

» Instrumentation cables: 2,400km

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Railways

OVERVIEW CLIENTS

» Large Potential in the Indian Railways sector

MARKET PLAYERS

sector

› 11th Plan Outlay (2008-2012) – Rs. 200,000 crs. (USD 50bn)

› Major Projects- Eastern & Western Freight Corridors, Monorails in Freight Corridors, Monorails in metros, Delhi–Mumbai Industrial Corridor (DMIC)

› KEC building PQs to participate in huge opportunities within

Electrical works L&TIRCON InternationalSPIC sumo

Signalling & Telecom works KalindeeMcMLBharatRailcomposite project space -

earthwork, platform construction, signaling, etc.

› Already won small orders in composite project space

SPIC sumoECICobraBest & CromptonTata ProjectsFedder’s Lloyd

BharatRailKiran UdyogMR TradingAR RailAsterAlkon Builderscomposite project space

» Major investments in Railways planned by countries in Gulf, Africa and South East Asia

yTalupala Sikka Enginnering

VN ReddyVijay Wargi

IRCON International Ltd IVRCLL&T Hindustan Construction Co

Civil Infra works

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L&T Hindustan Construction CoGammon India Ltd C&C LtdSimplex Infra Ltd AFCONSDS Construction Nagarjuna Const. CoSoma Enterprises ERA Construction Co

Telecom

OVERVIEW CLIENTS

» Domestic

› Current Indian mobile subscriber base in f 525excess of 525mn

› 10-12 million being added every month

› Auction for 3G spectrum ended

› Increased bandwidth and transmission

MARKET PLAYERS

requirements, strong upside for tower manufacturers

» Industry forecasts indicate that more than 350,000 towers with estimated capex of Rs. 60,000 crs. (USD12bn) will be required in

MARKET PLAYERS( ) q

the next two years

» International

› Africa and Middle East, where subscriber th ti

EPC ICOMAster Comtel

Application projects

growth continues

› Currently bidding for tower requirements in Greece and Spain with service providers

› KEC to leverage its experience in South

GTLKaramtaraARCONR.S. SteelR.N. Infra

ITI ICOMTCIL ABBHFCL ArevaGTL S&CTejas Siemens

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C to leve age ts e pe e ce Sout Africa to build markets across less penetrated African countries

R.N. InfraGangesDeepak GalvanisersSujana

Tejas SiemensAster GE

Future growth plans

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Multi-pronged growth strategy

TransmissionConsolidateDistribution

EPCTelecom

Grow

Telecom

Substation

Railways

Asset Ownership BOO Transmission

TelecomTelecom

Cable manufacturing

Build scale Cable

36

manufacturing

Thank You

37