Ramky Infrastructure Limited Company Presentation December 2010 - PowerPoint PPT Presentation

Ramky Infrastructure Limited Company Presentation December 2010

Disclaimer This Presentation and the accompanying slides (the “Presentation”), which has been prepared by Ramky  Infrastructure Ltd (“The company”) had been prepare solely for information purposes and don’t 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 what so ever. 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, expressed or implied, what so ever, 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 information that you may consider material. Any liability in respect of the content of, or any omission from this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market  opportunity and business prospects that are individually or collectively forward looking statements. Such forward looking statements are not guaranties of future performance and are subject to known and unknown risks, uncertainness and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to , the performance of the Indian economy and of the economies of various international markets, the performance of the infrastructure industry in India and world wide, competition, the Companies ability to successfully implement its strategy, the Companies future levels of growth and expansion, technological implementation , market risks, as well as other risks. The Companies actual results, levels of activity, performance, or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward looking information contained in this Presentation. Any forward looking statements and projections made by third parties(If any) included in this Presentation are not adapted by the Company and the Company is not responsible for such third party statements or projections 30/12/2010 14:52:45 – 1

Offering summary Issuer  Ramky Infrastructure Limited Offering Size  INR 5,300m (fresh issue of INR 3,500m and offer for sale of INR 1,800m)  Investment in capital equipment INR804.55m  Working capital requirements INR1,750.00m Objects of the Fresh Issue  Repayment of loans INR250.54m  General corporate purposes INR 694.91 m Type of offering  Reg S IPO Grading  IPO Grade 3/5 Issue Price  450.00  Issue opened on: September 21 st ; Issue closed on: September 23 rd Book Building Category % Oversubscription QIB 60% 4.25 Issue Overall 2.89 times over Subscription subscribed Retail 30% 0.99 Non-institutional 10% 1.44  Bombay Stock Exchange Ltd. (“BSE”); National Stock Exchange of India Ltd. (“NSE”) Listing Venue Book Running Lead Managers 30/12/2010 14:52:45 – 2

Agenda Corporate profile Industry overview Strengths and growth strategy 3

Corporate profile of Ramky Infrastructure Limited Ramky snapshot  Ramky Infrastructure Limited (“Ramky” or the “Company”), is an integrated construction and infrastructure development and management company with a pan-India presence  Ramky operates in two principal business segments: Construction business which is operated by the Company – Construction Developer business business Developer business which is operated through Subsidiaries – and Associates 109 completed 5 projects Water & Waste water Industrial parks  Ramky is promoted by a first generation promoter, projects Alla Ayodhya Rami Reddy and Y.R. Nagaraja, and managed by a team of experienced professionals 15 completed 5projects Irrigation Roads projects  Addition of Order Book during quarter ended Sept 30, 2010 was INR 49078m 29 completed Transport terminal 1 project Transportation projects  Track record of robust growth attained by a diversified portfolio of projects: 87 completed Building construction Integrated townships 3 projects (INRm) FY2006 FY 2010 FY 11(H1) CAGR* projects Order book 14,139 74,317 115894 51.4% 34 completed Industrial projects Revenue 4,125 20,093 10286 48.6% 12 ongoing Power EBITDA 322 2,016 1014 58.2% projects Net income 185 1,042 516 54.1% Sum of the parts Note: Above mentioned financials are for Ramky standalone * CAGR between 2006-2010 Note: Projects completed in the tables above are from April 1, 2002 to September 30, 2009 Proven track record across construction and developer business verticals 4

Detailed construction business profile Closing order book (INR m)  Include water treatment plants, water transmission and distribution systems, elevated reservoirs and ground level Water & Waste service reservoirs, sewage treatment plants, tertiary treatment plants, underground drainage systems and lake 140,000 Water restorations 115,894 120,000  Value of projects in hand: INR 23,083m 100,000 74,317 80,000  Include canals, cross-drainage works, lift irrigation projects, 59,238 dams and barrages Irrigation 60,000 36,887  Value of projects in hand: INR 14,914m 40,000 22,308 14,139 20,000  Includes expressways, highways, bridges, flyovers and dedicated service corridors Transportation 0  Value of projects in hand: INR 46,819m FY06 FY07 FY08 FY09 FY10 FY 11(H1)  Includes commercial, residential, public, institutional and Average order size (INR m) corporate buildings, mass housing projects and related infrastructure and facilities such as hospitals and shopping Buildings malls  Value of projects in hand: INR 19,671m 18,250 20,000 15,644 15,541 16,000  Includes industrial parks, SEZs and related works Industrial  Value of projects in hand: INR 5,939m 12,000 5,587 8,000 4,778 1,216  Includes electricity transmission networks, substation 4,000 feeder lines and low tension distribution lines 0 Power  On-going power transmission and distribution project in Madhya Pradesh and Maharashtra FY06 FY07 FY08 FY09 FY10 FY 11(H1)  Value of projects in hand: INR 5,469m Revenue visibility is driven by robust order book growth in the construction business 30/12/2010 14:52:45 – 5

Detailed construction business profile (continued) Closing order book (INR m)  Core competency and area of continued focus going forward  Undertake projects on both composite and several 30,000 basis with scope including, design, engineering, 24,476 23,083 25,000 construction, operation & maintenance solutions to manage projects from generation, T&D, Treatment, 20,000 eventual storage & disposal Water & Waste 16,823 Water 13,586  Highly specialized internal design team equipped 15,000 with tacit processes and know how gained through experience 10,000  Qualified to build Treatment Plants of large sizes up 4,021 2,929 5,000 to 300 MLD  Strategy going forward is to retain leadership by 0 continuous investment in technology FY06 FY07 FY08 FY09 FY10 FY 11(H1) Closing order book (INR m)  Perceived by clients as a total irrigation solution provider, including, lift irrigation, dams, barrages and cross drainage work 20,000  Efficient design and execution team 15,644 15,541 14,914  Mitigate risks in the vertical by only retaining core 16,000 activities of design and supervision while subcontracting all other areas 12,000 Irrigation  Focus on geographic expansion outside Andhra 8,000 Pradesh into states such as Gujarat, Madhya 5,587 4,778 Pradesh and Karnataka 4,000  Qualified to bid for larger projects 1,216  Strategy is to leverage government incentives for 0 the sector FY06 FY07 FY08 FY09 FY10 FY 11(H1) Construction business is spearheaded by Water and Waste Water with significant contributions from other segments 30/12/2010 14:52:45 – 6

Detailed construction business profile (continued) Closing order book (INR m)  Qualified to execute expressways, highways, bridges, flyovers and dedicated service corridors  Maximize efficiency through seamless 46,819 50,000 synchronization of supply chain, logistics, operation and execution functions 40,000  Leverage expertise in developer business Transportation  Aim for completion prior to target dates through: 30,000 - Control over supply chain (e.g. Quarries) 20,000 15,750 - Technology to improve supply chain and 9,249 reduce pilferages 5,992 10,000 3,836 - In house control over bituminous mix 1,403  Strategy remains to focus on challenging terrains 0 FY06 FY07 FY08 FY09 FY10 FY 11(H1) Closing order book (INR m)  Focus remains on construction of large institutional buildings  Inbuilt processes to attain synergies across various verticals and rely on a pool of qualified 25,000 subcontractors for efficient execution 19,671 20,000  Core competency remains focusing on efficient planning Buildings 15,000  Strategy is to mechanize processes where 10,451 10,244 8,527 specialized manpower is required, thereby, 10,000 improving operating margins 4,579 3,837 5,000 0 FY06 FY07 FY08 FY09 FY10 FY 11(H1) Additionally, Ramky continues to build on momentum gained in other verticals such as Power 30/12/2010 14:52:45 – 7