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VA TECH WABAG LTD

Results Update Presentation Q4 & 12 months FY 2020 - 21

World's Top 50 Private Water Operators

WABAG ranked 4th globally by GWI for ensuring safe & clean drinking water and sanitation

Safe Harbour

This presentation and the accompanying slides (the "Presentation"), which have been prepared by VA TECH WABAG LIMITED (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

Complete Water Treatment Solution Provider…

Provides a complete range of Water and Waste Water Treatment solutions
Offering spanning across Municipal Drinking Water, Municipal Sewage, Industrial Water, Industrial Effluents, Desalination and Recycle
Technology focused company - Owns more than 90 IP rights
R&D centers located in India, Austria and Switzerland
Indian Multinational player in the water treatment industry
Strong execution track record - More than 2300 projects in last 3 decades
Professionally managed Company with Promoters having an average of 30 years work experience in the industry

Range of Solutions offered in Water Space

Sewage Water Treatment

Activated Sludge Process
Sequential Batch Reactors
Membrane Bed Bio Reactor
Upflow Anaerobic Sludge Blanket Reactor
Bio Active Fixed Film Technology
Submerged Membrane System
Stabilization Pond

Industrial Wastewater Treatment

Physico Chemical Treatment
Neutralization and primary sedimentation and grit removal
Biological anaerobic treatment
Tertiary Treatment activated carbon/ sand filtration, disinfection
Zero Liquid Discharge

Aeration
Sedimentation
Filtration
Disinfection
Sludge Dewatering

Industrial Water Treatment

Raw water pre treatment
Filtration Plants
Nano / Ultra Filtration
Softening Plants
Thermal Desalination of sea water treatment
Demineralization
Tertiary Treatment System/ Effluent Recycling

Recycling

Micro filtration
Membrane Bio Reactors
Ultra Filtration
Reverse Osmosis
Zero Liquid Discharge

Multi Stage Flash

Multi-effect distillation

Desalination

Thermal Vapor Compression
Mechanical Vapor
Compression
Reverse Osmosis and Electro dialysis

Complete Water Treatment Solution Provider…

. . . With complete portfolio of Water Solutions with technological and operational expertise . . . . . through various business/ delivery model

Asset light business model

Focus on 'Value-Added & High Margin' work processes; Limits investment in Asset Base

Key Highlights FY 20 - 21

Quarterly Performance & Business Updates

Order Book Analysis

Cash and Working Capital:

Second consecutive year of Free Cash Flow generation of Rs. 960 Million on Consolidated and Rs. 686 Million on Standalone basis
Second consecutive year of positive operational cash flow generation of Rs. 1,353 Million on Consolidated and Rs. 1,046 Million on Standalone basis
Group turnaround from Net Debt to Net Cash of Rs. 436 Million; Gross debt reduction of 33% in FY 21
Net Working Capital improved to 97 days

Sales and Profitability:

Consolidated Revenue of Rs. 28,345 Million; YoY up by 11%
EPC sales up by 10% and O&M sales up by 17%
Consolidated PAT of Rs. 1,101 Million; YoY up by 21%

Order book of over Rs. 95 Billion including Framework contracts; > 3x revenue visibility

Group turns Net Cash Positive

Business Highlights – FY 21

In 2021, WABAG was ranked 4th globally among the "World's top 50 private water operators" as per Global Water Intelligence (GWI), for ensuring safe drinking water and clean environment for over 71 million people across the globe
Credit rating upgrade on the backing on strong performance A+ (Long term) / A1 (Short term), with Stable Outlook
Equity fund raise of INR 120 Crores from Marquee investors; Company grew 3 times since IPO in 2010
Successful financial closure of first HAM project achieved in partnership with global financial institutions like International Finance Corporation (IFC), Tata Cleantech Capital Limited and EverSource capital owned Kathari Water
Successful financial closure of second HAM project achieved in partnership with PTC India Financial Services Limited
Bagged 4 Prestigious recognitions at the Environment Health Safety (EHS) Excellence Awards organized by Confederation of Indian Industry (CII)

Quarterly & 12 month Performance

Water

+ve 12

RESULTS OVERVIEW – Consolidated Profit and Loss

Rs. Millions	Q4FY 21	Q4FY 20	YOY %	FY 21	FY 20	YOY %
Revenue fromoperations	9,993	7,851	27.3%	28,345	25,572	11.0%
Gain on Divestment	-	193	~	-	193	~
Cost of Sales	7,991	6,075	31.6%	22,331	19,352	15.4%
Total Cost ofOperations (TCO)	1,237	1,222	1.3%	3,827	3,952	(3.2%)
EBITDA	764	748	2.2%	2,188	2,461	(11.1%)
EBITDA margin	7.6%	9.5%		7.7%	9.6%
EBITDA margin excl.Divestment Gain	7.6%	7.1%		7.7%	8.9%
Net InterestCost	40	97	(58.8%)	284	541	(47.6%)
Bank Charges	166	159	4.7%	537	489	9.9%
Depreciation &Amortization	27	40	(32.4%)	121	154	(21.2%)
Tax	107	141	(23.9%)	295	486	(39.3%)
Share of Profits fromAssociates / MI (Net)	42	(6)	(783.9%)	150	118	27.7%
Profit After Tax(Owners)	466	304	52.9%	1,101	910	21.0%
PAT margin	4.7%	3.9%		3.9%	3.6%

• 11% YoY sales improvement despite challenging pandemic year, with curtailed activities both in supply chain and site works

• EBITDA margin excluding forex gain / (loss) remains intact

• Net Finance cost reduction mainly driven by debt reduction

Water +ve 13

RESULTS OVERVIEW – Standalone Profit and Loss

Rs. Millions	Q4FY 21	Q4FY 20	YOY %	FY 21	FY 20	YOY %
Revenue fromOperations	6,997	4,914	42.4%	18,431	17,463	5.5%
Cost of Sales	5,663	3,809	48.7%	14,508	13,201	9.9%
Total Cost ofOperations (TCO)	718	817	(12.1%)	2,229	2,497	(10.8%)
EBITDA	616	288	113.6%	1,695	1,766	(4.0%)
EBITDA margin	8.8%	5.9%		9.2%	10.1%
Net InterestCost	52	66	(20.8%)	235	402	(41.4%)
Bank Charges	109	92	19.0%	420	319	31.6%
Depreciation &Amortization	15	16	(5.6%)	61	67	(9.1%)
Tax	112	102	10.2%	248	390	(36.4%)
Profit After Tax	328	14	~	730	588	24.3%
PAT margin	4.7%	0.3%		4.0%	3.4%

• EBITDA margin excluding forex gain / (loss) has improved

• Reduction in Net Interest Cost as a result of continued focus on debt reduction

• Increase in bank charges driven by guarantees for higher order book

+ve 14

Water

RESULTS OVERVIEW – Balance Sheet

	Consolidated		Standalone
Rs. Millions	Mar'21	Mar'20	Mar'21	Mar'20
Total Equity (Net Worth)	13,963	11,722	11,679	9,766
Non-Current Liabilities	3,997	2,665	3,518	2,545
Trade Payables	16,578	16,269	11,375	11,607
Short Term Borrowings	1,732	4,528	1,653	3,738
Other Current Liabilities	5,342	5,052	3,145	2,575
Total Equity& Liabilities	41,612	40,236	31,370	30,231
Fixed Assets	863	863	683	738
Other Non-Current Assets	7,701	6,065	6,690	5,720
Trade Receivables	13,496	15,894	12,819	12,458
Cash & Bank Balances	3,713	3,205	2,170	1,596
Other Current Assets	15,839	14,208	9,008	9,719
Total Assets	41,612	40,236	31,370	30,231

Significant debt reduction across the Group

Gross debt reduction of 33% in FY 21
Turned around from net debt to net cash position in FY 21

YoY 6% reduction in total billed receivables despite a 11% increase in top line

Water +ve 15

Cash Flow Statement

	Consolidated		Standalone
Rs. Millions	FY 21	FY 20	FY 21	FY 20
Net cash generated from/(used in)operations	1,353	2,448	1,046	1,319
Net cash generated from/(used) ininvesting activities	(41)	297	228	(389)
Net cash generated from financingactivities	(858)	(1,354)	(410)	(386)
Cash and cash equivalents at the end	2,997	2,489	1,729	882

Consecutive years of free cash flow and operational cash flow generated
Free Cash Flow generation of Rs. 960 Million on Consolidated and Rs. 686 Million on Standalone basis in FY 21

Working Capital Highlights

Rs. Millions	Mar'21	Mar'20
Inventories	297	264
Trade Receivables	13,496	15,894
Loans and Advances	793	494
Other Current Assets	14,748	13,450
Total Current Assets (A)	29,335	30,102
Trade Payables	16,578	16,269
Other Current Liabilities and Provisions	5,342	5,052
Total Current Liabilities (B)	21,920	21,321
Net Working Capital (NWC) (A-B)	7,415	8,781
Net Working Capital (No. of Days)	97	127
Core Net WorkingCapital Days	58	83

Working Capital levels reduction driven by improved focus on collections and cash management
16% reduction in working capital base and 30 days reduction in NWC days, during this challenging pandemic year
Current trade receivables down by 15% YoY despite 11% higher sales

Robust Core Performance

9.6%

Water +ve 19 Order Book Analysis

Revenue Breakup – FY 21

Rs. Millions		EPC		O&M	Total
	Municipal	Industrial	Municipal	Industrial
Wabag India #	10,419	4,920	2,391	489	18,219
WabagOverseas	7,069	1,422	1,150	134	9,775
Total	17,488	6,342	3,541	623	27,994
# Includes HAM SPVs
	EPC [Rs. Bn.]			O&M [Rs. Bn.]
10%21.6FY 20	23.8FY 21		3.6FY 20	17%4.2FY 21

Water +ve 20

* Rest of the World

Key Projects Contributing to Revenue – FY 21

Project Details	Revenue recognized[Rs. Mn]
Expansion SWTP 9, Jubail, KSA –STP	3,296
South Doha, Qatar –STP	2,180
50MLDZarat,Tunisia–Desal	1,938
MRPL,Karnataka–Desal	1,750
Dangote, Nigeria -ETP & RWTP	1,678
Polgahawela,Srilanka–WTP	1,436
UPJN,O&MofAgra&Ghaziabad	1,131
Purolite,Romania–ETP	935
AlKharjStage3,KSA-WWTP	644
JAJMAU,Kanpur–CETP	522

Order Intake Breakup

Rs. Millions		EPC		O&M	Total	EPCO&M
	Municipal	Industrial	Municipal	Industrial		34%
Wabag India #	4,583	16	3,485	60	8,144	66%
WabagOverseas	3,309	706	948	14	4,977	MunicipalIndustrial6%
Total	7,892	722	4,434	74	13,121
# Includes HAM SPVs						94%
Key Orders Received					Order Value(Rs. Mn.)	IndiaEuropeROW *

* Rest of the World

Order Book Composition

Rs. Millions		EPC		O&M	Total
	Municipal	Industrial	Municipal	Industrial
Wabag India #	28,259	6,067	28,606	1,441	64,372
WabagOverseas	16,736	587	1,758	961	20,043
FrameworkContracts					11,426
Total	44,995	6,654	30,364	2,402	95,841

FY 20 FY 21

31.2

72.1 51.6

32.7

O&M

EPC

# Includes HAM SPVs

* Rest of the World

Order Book of Rs. 84.4 Bn & Framework Contracts of Rs. 11.4 Bn

Key Contracts in Orderbook
Project Details	Amt [Rs. Mn]
UPJN,O&MofAgra&Ghaziabad	16,656
BUIDCO,Digha&Kankarbagh–STP&Network	9,526
KMDA,Howrah–STP	3,879
JAJMAU,Kanpur–CETP	3,581
50MLDZarat,Tunisia–Desal	3,205
JeddahAirport,KSA–STP	3,058
ExpansionSWTP9,Jubail,KSA–STP	2,904
IpsachBielSWW,Switzerland–WTP	2,054
WaterSupplySystem,Bhagalpur,India–WTP&Network	2,130
KoyambeduO&M,Chennai–TTRO	1,955

Water +ve 25 Awards and Accolades

Year 2021

Environment Health Safety (EHS) Excellence Awards

World's Top 50 Private Water Operators

Received 4 Prestigious Recognitions at the Environment Health Safety (EHS) Excellence Awards organized by Confederation of Indian Industry (CII) South Zone

WABAG ranked 4th globally by GWI for ensuring safe & clean drinking water and sanitation for over 71 million people across the globe

Year 2020

Global Water Awards 2020

Distinction Award under "Wastewater Project of the Year" from the Global Water Intelligence for our Koyambedu TTRO Plant, Chennai

National Water Awards 2019

National Water Awards 2019 for 'Best Research / Innovation / Adaptation of New Technology for Water Conservation'

Global Water Awards 2020

Water Digest Awards 2019 – 20

Highly Commended Award under "Industrial Project of the Year" from the Global Water Intelligence for our Petronas IETP, Malaysia

Bestowed with 'Best Water Treatment Project – Industrial' & 'Excellence Award for Best CSR in Water Sector' at the Water Digest Water Awards 2019-20