KEC International Ltd. — Capital/Financing Update 2021

Sep 18, 2021

KEC INTERNATIONAL LTD.

RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 www.kecrpg.com

September 18, 2021

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400 051

Symbol: KEC

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001

Scrip Code: 532714

Dear Sir/Madam,

Sub: Press Release - KEC International acquires an EPC company in the Oil and Gas Pipelines sector

We are pleased to enclose a copy of the press release titled “KEC International acquires an EPC company in the Oil and Gas Pipelines sector”.

An Investor presentation on the above is also enclosed.

The above is for your information and records.

Thanking you, For KEC International Limited

Digitally signed by Amit Kumar Gupta DN: c=IN, o=Personal, 2.5.4.20=b7e8678b2d6b381cb8f4761d9cbb43382 Amit Kumar 53df2c8e93e8fcf768f8e86438a00a1, postalCode=400705, st=Maharashtra, serialNumber=de9bbd80d8994e4be9f0dd239914 4eba7e782d70287df6aad1994f0b522fa08a, Amit Kumar Gupta Gupta cn=Amit Kumar Gupta Date: 2021.09.18 19:28:31 +05'30' Company Secretary and Compliance Officer

Encl: as above

Registered Office: RPG House, 463, Dr. Annie Besant Road Worli, Mumbai 400030, CIN: L45200MH2005PLC152061, India.

An Company

KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 www.kecrpg.com

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KEC International acquires an EPC company in the Oil and Gas Pipelines sector

Mumbai, September 18, 2021 : KEC International Ltd. (“KEC”), a global infrastructure EPC major, an RPG Group Company, has today entered into a definitive agreement to acquire 100% equity in Spur Infrastructure Private Limited (“Spur Infra”) for an enterprise value of Rs. 62 crores subject to customary adjustments at closing. The acquisition is expected to be completed within 60 days from the date of agreement.

Spur Infra, incorporated in 2016, is an Indian EPC company engaged in setting up of cross country oil & gas pipelines and city gas distribution networks. In the last three years, Spur Infra has an annual revenue in excess of Rs. 100 crores, a profitable track record, technical expertise, and experienced manpower. Spur Infra has an order book of ~Rs. 600 crores comprising of cross-country pipelines and city gas distribution network projects from marquee customers.

Acquisition of Spur Infra is in line with KEC’s strategy to diversify into adjacent areas of growth. KEC’s proven project management capabilities and extensive experience of executing cross-country linear projects and managing Right of Way (RoW), along with Spur Infra’s technical knowhow, experienced manpower and relevant pre-qualifications will enable KEC to capture the lucrative growth opportunities in the oil and gas cross-country pipelines EPC sector in India as well as in international markets.

Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd. commented , “We launched the oil and gas pipelines EPC business in line with the Government’s thrust in the sector and our strategy to diversify the business portfolio into adjacencies. This acquisition will enable us to accelerate growth in this sector and establish this business as one of our key growth drivers going forward.”

About KEC International Limited

KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has presence in the verticals of Power Transmission and Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, Oil & Gas Pipelines, and Cables. The Company is currently executing infrastructure projects in 30+ countries and has a footprint in 105+ countries (includes EPC, Supply of Towers and Cables). It is the flagship Company of the RPG Group.

About RPG Enterprises

RPG Enterprises, established in 1979, is one of India's fastest growing business groups with a turnover of US$ 4 Billion. The group has diverse business interests in the areas of Infrastructure, Tyres, Pharma, IT and Specialty as well as in emerging innovation led technology businesses.

About Spur Infrastructure Private Limited

Spur Infrastructure Private Limited, incorporated in 2016, is an Indian EPC company in the oil and gas pipelines sector, with operations in cross country pipelines and city gas distribution networks.

Registered Office: RPG House, 463, Dr. Annie Besant Road Worli, Mumbai 400030, CIN: L45200MH2005PLC152061, India.

An Company

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KEC International Limited

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Investor Presentation Acquisition of Spur Infrastructure Private Limited

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Cables
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Power T & D

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Railways
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Civil
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18 September 2021
Solar Smart Infra Oil & Gas Pipelines
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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 forwardlooking 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.

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Acquisition Highlights

Company Acquired

• KEC has entered into a definitive agreement to acquire 100% equity of Spur Infrastructure Private Limited, incorporated in 2016, an Indian EPC company in the oil and gas pipelines sector

Specialisation

• Specializes in setting up of cross country oil & gas pipelines and city gas distribution networks with relevant pre-qualifications

• Access to marquee customers such as GAIL, IOCL, IGL, etc.

• Technical knowhow, experienced manpower and best in class owned equipment

• Annual Revenue in excess of Rs. 100 crores in last three years (FY21 – Rs. 104 Cr, FY20 – Rs. 124 Cr & FY19 - Rs. 132 Cr)

Key Metrics

• Profitable track record

• Healthy order book of ~Rs. 600 crores

• Expected to deliver a strong Revenue growth going forward

Purchase Consideration & Mode of Financing

• Enterprise value of Rs. 62 crores, subject to customary adjustments on closing, through cash consideration

• Transaction will be funded through KEC’s internal accruals and expected to close within next 60 days

• The transaction is expected to be EPS accretive to KEC from the first year FY22

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Spur Infra – Key Clientele

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Oil and Gas Pipelines – Key Market Drivers

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• One Nation, One Gas Grid – Govt. plans to complete national gas grid

• National Gas connecting all major demand & supply centers of natural gas Grid • Govt.’s ambitious target to increase Gas in energy mix from current 6% to 15% by 2030

Hydrocarbon • Significant pipeline projects planned for North-East India Vision 2030

• Impetus on increasing pipeline's share in transporting petroleum

• Network products

• expansion •

• Plans Focus on spur lines to connect city gas distribution network to crosscountry pipelines

• Increasing • Increasing refining capacity of crude oil by 2x, from 250 MMTPA to

• Refining 450 MMTPA by 2030

• Capacity

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Acquisition Rationale – Synergies Accelerating Business Growth

In line with KEC’s strategy to diversify into adjacent areas of growth

KEC

Spur Infra

• Proven project management capabilities

• Multi- sectoral EPC strengths

• Extensive experience of executing cross-country linear projects

• Managing Right of Way (RoW)

• Strong business development and tendering to enhance market penetration

• Relevant Pre-qualifications

• Healthy order book

• Access to reputed clientele

• Technical knowhow, experienced manpower and best in class owned – equipment

• Strong financial performance – profitable track record

Will enable KEC to capture lucrative growth opportunities in the oil & gas cross-country pipelines sector

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THANK YOU

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Global Footprint in
100 countries
Includes EPC and Supply
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Follow us on:

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Registered Office

RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com

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www.kecrpg.com