TD Power Systems Ltd — Investor Presentation 2019

Jan 31, 2019

TD POWER SYSTEMS LIMITED December 2018

==> picture [76 x 47] intentionally omitted <==

Company Presentation

==> picture [118 x 101] intentionally omitted <==

==> picture [118 x 101] intentionally omitted <==

==> picture [131 x 98] intentionally omitted <==

==> picture [117 x 97] intentionally omitted <==

==> picture [117 x 97] intentionally omitted <==

1

BUSINESS STRUCTURE

==> picture [76 x 47] intentionally omitted <==

==> picture [584 x 55] intentionally omitted <==

==> picture [143 x 161] intentionally omitted <==

----- Start of picture text -----

Manufacturing
----- End of picture text -----

Manufacturer of AC Generators

(Up to 200 MW)

• Diversified portfolio customized for a wide range of turbines (steam, gas, hydro and wind) and engines (diesel and gas)

• Since inception, manufactured 3,980 generators, including generators exported to 73 countries, with aggregate output capacity of 29,185 MW

• Three manufacturing facilities in Bangalore, backed by captive power/water supplies and a well-developed ancillary vendor network

• Sales through OEM’s, which are turbine and engine manufacturers; strong engineering consultant relationships allow deep involvement in project tendering

==> picture [142 x 177] intentionally omitted <==

----- Start of picture text -----

Projects
----- End of picture text -----

Projects business

(Turbine Generator Island projects of output capacity up to 52 MW)

• Steam turbine power plant projects combining TDPS’ generators with Japanese turbines

• Completed 109 TG island projects & 14 BTG projects with aggregate output capacity of 3,231 MW

• Projects executed in India, Uganda, Kenya, Zambia and the Philippines

2

STATE OF THE ART MANUFACTURING FACILITIES AND COST EFFICIENT PRODUCTION

==> picture [76 x 47] intentionally omitted <==

Manufacturing units with advanced machines help in delivering competitively priced products with the highest quality standards

ISO 9001:2008 compliant manufacturing units in Bangalore

==> picture [69 x 71] intentionally omitted <==

==> picture [70 x 70] intentionally omitted <==

==> picture [68 x 62] intentionally omitted <==

==> picture [43 x 67] intentionally omitted <==

==> picture [244 x 101] intentionally omitted <==

Unit I Factory

==> picture [244 x 102] intentionally omitted <==

Unit I - 157,624 sq ft

Core building, Coil making, Winding & Machining Impregnation and curing Balancing Final assembly and testing Material Handling & General Facilities Power House R&D Centre Quality lab and instruments

Unit II – 219,756 sq ft

Core building, Coil making, Winding & Machining Impregnation and curing Balancing Final assembly and testing Material Handling & General Facilities Power House R&D Centre Quality lab and instruments

Unit II Factory

==> picture [70 x 70] intentionally omitted <==

==> picture [61 x 55] intentionally omitted <==

==> picture [116 x 34] intentionally omitted <==

==> picture [244 x 116] intentionally omitted <==

2 Pole Factory – 78,449 sq ft

Core building, Coil making, & Winding Impregnation and curing Final assembly and testing Material Handling & General Facilities Power House (Common with Unit 2) R&D Centre (Common with Unit 2) Quality lab (Common with Unit 2) and instruments

2 Pole Factory

3

FINANCIALS : FY’19 9M

==> picture [76 x 47] intentionally omitted <==

Particulars (Rs Millions)	FY 19 9M	FY 18 9M
Total Income (excluding excise duty)	2,679.69	2,928.64
EBITDA	84.27	93.76
Margins (%)	3.14%	3.20%
Depreciation	194.09	204.55
Interest	25.30	50.52
PBT	(135.12)	(161.31)
Tax	(13.34)	20.11
PAT	(121.78)	(181.42)
PAT after OCI	(120.16)	(184.27)

4

PENDING ORDER

==> picture [76 x 47] intentionally omitted <==

==> picture [663 x 388] intentionally omitted <==

----- Start of picture text -----

(Rs Mn)
11,188
12,000 10,712
10,000
8,000
6,000
4,000
2,000 475
-
Manufacturing Projects Business Total
Dec 2018 - Rs Millions 10,712 475 11,188
Domestic 934 475 1,409
-
Exports 1,200 1,200
-
Deemed Export 1,051 1,051
-
Domestic - Railways 7,527 7,527
----- End of picture text -----

5

REVENUE ANALYSIS

==> picture [76 x 47] intentionally omitted <==

==> picture [663 x 387] intentionally omitted <==

----- Start of picture text -----

(Rs Mn)
3,500
2,973
2,840
3,000
2,500
2,000
1,500
1,000
500
133
-
Manufacturing Projects Business TOTAL
FY19 - Rs Millions 9M FY19 2,840 133 2,973
Domestic 1,267 125 1,393
Exports 841 8 849
-
Deemed Export 732 732
----- End of picture text -----

• Prior to inter-segment and inter-company eliminations

6

BUSINESS SEGMENT: MANUFACTURING

==> picture [76 x 47] intentionally omitted <==

Business highlights

AC Generators for various applications

• One of the leading manufacturers of AC Generators in the range of 1 MW up to 200 MW for prime movers such as steam & gas, and upto 52 MW for hydro, wind turbines, diesel and gas engines.

• 3,980 generators supplied as of December 31, 2018 with an aggregate output capacity of over 29,185 MW in 73 Countries.

• Three manufacturing facilities in Bangalore equipped with the latest technology.

==> picture [319 x 151] intentionally omitted <==

----- Start of picture text -----

Turbines
Steam Gas Hydro Wind
Up to 200 MW Up to 20 Mw Horizontal - Up to 15 MW 3 MW
Vertical – Up to 35 MW
Engines Locomotive
Diesel Gas Diesel
Up to 15 MW Up to 12MW Up to 3 MW
Special Applications Other Generators
For Motor /transformer testing Geo Thermal / Solar application
Customized
----- End of picture text -----

• Our generators have been approved by leading engineering consultants.

Revenue Analysis FY 19 9M – Consol Levels (Rs. 2,840 Mn)

==> picture [316 x 109] intentionally omitted <==

----- Start of picture text -----

1,267
841
732
----- End of picture text -----

Key Segment Financials (Rs. Mn)

==> picture [319 x 156] intentionally omitted <==

----- Start of picture text -----

4,500 4,252 14%
13%
4,000 3,768 3,816 12%
3,462
3,500
3,000 9% 2,840 10%
2,500 8%
7%
2,000 5% 6%
1,500 4% 4%
1,000
482 352 2%
500 245 229 121
- 0%
FY15 FY16 FY17 FY18 9M FY19 FY19 Q3
Revenue EBITD EBITD Margin
----- End of picture text -----

Segmental revenues without inter-segment & inter-company elimination. Segmental Revenue & EBITD margins are on consol levels after adjusting income/expenses of wholly owned subsidiary.

Deemed Export

Domestic

Exports

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

7

BUSINESS SEGMENT: MANUFACTURING

==> picture [76 x 47] intentionally omitted <==

Product-wise sales (%)

Key end user industries (%)

==> picture [664 x 146] intentionally omitted <==

----- Start of picture text -----

100%
100%90% 4%7% 11%3% 13%2% 0%6% 19%0%2% 90% 21% 21% 30% 25% 20%
80%70% 6% 9% 7% 28% 5% Others 80%70% 7%4% 11%2% 19% Others
60%50% 39% 29% 29% 18%7% 38% TractionGas 60%50% 39% 29% 13%1% 28%4% 2% GasMetalHydro
40% Diesel 40% 29% 38%
30% Hydro 30% 11% 18% SugarTraction
20% 44% 49% 49% 41% 37% Steam 20% 17% 18% 10% 9% Power
10% 10% 26% 6% 2%
0% 0% 12% 10% 8% 11%
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
----- End of picture text -----

*Other units include generators for transformer motor testing applications not reflected in charts above

• Others include Chemical, Food, Paper, Textile, Process, Wind, Distillery, Fertilizer etc

Pending Order December 2018 (Rs. 10,712 Mn)

Top Ten Customer Revenue (%)

==> picture [302 x 143] intentionally omitted <==

----- Start of picture text -----

8,000 7,527
7,000
6,000
5,000
4,000
3,000
2,000 934 1,200 1,051
1,000
-
Domestic Exports
Deemed Export Domestic - Railways
----- End of picture text -----

==> picture [296 x 135] intentionally omitted <==

----- Start of picture text -----

78%
70% 67% 78% 59%
FY14 FY15 FY16 FY17 FY18
----- End of picture text -----

Product portfolio spread across diverse and loyal customer base

8

==> picture [76 x 47] intentionally omitted <==

BUSINESS SEGMENT: PROJECT BUSINESS

Business highlights

• TG Projects for steam turbine power plants with output capacity of up to 52 MW done under TD Power Systems Ltd

• Executed 123 projects aggregating 3,231 MW in India and abroad (110 TG island projects and 13 BTG island projects)

• Experienced teams with established track record and reputation for efficient project management

• Power Projects order book as on December 31[st] 2018 stands at Rs. 475 Mn

TG Projects including Japan WOS - Key Segment Financials (Rs Mn)

==> picture [368 x 189] intentionally omitted <==

----- Start of picture text -----

1,400 10%
1,248
1,200 5% 8% 4%
5%
991
1,000
0%
800 -1%
685
611
600 -5%
400
-10%
200 98 133
50 28
-15%
- -17%
FY15 FY16 FY17 FY18 -6 9M FY19 FY19 Q3
(200) -22 -20%
Revenue EBITD EBITD Margin
----- End of picture text -----

Segmental revenues without inter-segment elimination, including Japan subsidiary

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

Established track record of executing power projects

9

FINANCIAL TRACK RECORD

==> picture [76 x 47] intentionally omitted <==

==> picture [651 x 359] intentionally omitted <==

----- Start of picture text -----

7,000
Segmental Revenues Consolidated (Rs Mn)
6,000
5,000
4,000
3,000
2,000
1,000
-
FY15 FY16 FY17 FY18 9M FY19 FY19 Q3
EPC 1,577 231 17 - -
Project Business 991 1,248 685 611 133
Manufacturing 3,768 3,816 3,462 4,252 2,840
Manufacturing Project Business EPC
----- End of picture text -----

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income

Segmental revenues without inter-segment elimination

10

FINANCIAL TRACK RECORD

==> picture [76 x 47] intentionally omitted <==

==> picture [626 x 301] intentionally omitted <==

----- Start of picture text -----

600 Segmental EBITDA Consolidated (Rs Mn)
500
400
300
200
100
-
(100)
(200)
(300)
FY15 FY16 FY17 FY18 9M FY19 FY19 Q3
EPC (240) (218) (22) (11) (17)
Project Business 50 98 28 (6) (22)
Manufacturing 482 352 245 229 121
----- End of picture text -----

Manufacturing Project Business EPC

Segmental revenues without inter-segment elimination

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income

11

P & L SNAPSHOT

==> picture [76 x 47] intentionally omitted <==

			Consolidated	Consolidated
Rs Mn	FY15	FY16	FY 17	FY 18	FY 19 9M
Sales	5.974	5,068	3,799	4,349	2,582
EBITDA	141	67	82	84	(10)
Depreciation (incl. Amortization)	288	288	279	271	194
EBIT	(147)	(221)	(196)	(187)	(204)
Other Income	245	202	202	159	98
Interest and Finance Charges	40	50	41	67	25
PBT	59	(69)	(36)	(95)	(132)
Tax	68	23	8	49	(13)
Other Comprehensive Income			(2)	(2)	(2)
Restated PAT	(9)	(92)	(42)	(142)	(120)
Minority Interest	0	0	0	0	0
Restated PAT after minority interest	(9)	(92)	(42)	(142)	(120)
EBITDA margin (%)	2.40%	1.32%	2.17%	1.92%	(0.4%)
PAT margin (%)	(-0.2%)	(-1.8%)	(1.1%)	(3.3%)	(4.7%)

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income

12

BALANCE SHEET SNAPSHOT

==> picture [76 x 47] intentionally omitted <==

	Consolidated
	As on
Rs Mn	Mar-15 Mar-16 Mar-17 Mar-18 Dec-18
Source of Funds	5,691 5,162 5,271 5,274 4,971
Net Worth	4,940 4,733 4,705 4,494 4,141
Minority Interest
Borrowings	574 276 453 686 748
Deferred Tax Liability	177 153 112 94 82
Uses of Funds	5,691 5,162 5,271 5,274 4,971
Gross Block	3,542 3,681 3,691 3,732 3,785
Less :- Depreciation	876 1,136 1,382 1,634 1,810
Net Block	2,667 2,545 2,309 2,098 1,975
CWIP	- 7 7 6 11
Investments	100
Technical Knowhow	49 37 25 35 22
Net Working Capital incl. cash	2,975 2,574 2,931 3,135 2,864
Current Assets	6,245 5,340 5,112 4,946 4,804
Inventories	760 881 800 817 1,367
Sundry Debtors	1,551 1,552 1,605 1,851 1,398
Cash and Bank Balances	2,721 2,258 2,146 1,684 1,331
Loans & Advances	1.212 648 560 594 707
Current Liabilities	3,095 2,567 2,106 1,742 1,873
Provisions	175 200 74 68 67

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income

13

SHAREHOLDING STRUCTURE

==> picture [76 x 47] intentionally omitted <==

Shareholding %

TDPS Stock Price Movement

==> picture [365 x 203] intentionally omitted <==

----- Start of picture text -----

250
2.8% Promoters
230
2.7% 210
15.8% 190
Mutual Funds
170
150
2.7% Foreign Institutional 130
Investors 110
56.2% Individuals 90
70
19.9% 50
Corporate Bodies 30
Others
----- End of picture text -----

==> picture [355 x 39] intentionally omitted <==

----- Start of picture text -----

8-Sep-11 30-Jan-19
TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods)
----- End of picture text -----

As on 31[st] December 2018

14

==> picture [76 x 47] intentionally omitted <==

THANK YOU

==> picture [178 x 147] intentionally omitted <==

==> picture [175 x 147] intentionally omitted <==

==> picture [177 x 147] intentionally omitted <==

==> picture [186 x 146] intentionally omitted <==