analyst meet presentation

Vascon Engineers Limited

Analyst Meet PresentationQ1 FY11

Agenda

1. Economic overview

2. Key financials

3. Project details – EPC

4. Project details – Real estate

5. Acquisition

6. Business positioning & Way forward

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5971

85102

122

145

FY 10E FY 11E FY 12E FY 13E FY14E FY 15E

Indian economy continues to be on strong footing

Strong GDP growth to continue

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# RBI est. for FY11

9.20%

6.70%7.40%

8.50%

FY 08 FY 09 FY 10 FY 11 E

#

1.721.54

2.04

1.72

1.21

2.18 2.21

Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10

FDI inflow getting stronger… …with significant investment in construction, housing and real estate sector

Service Sector17% Construction

11%

Housing/Real Estate

11%

Others61%

Data for FY10Total inflow of Rs. 25.9 bn.

Rs. bn.

Source: Citi research/UBS

GCF in Infrastructure

USD bn.

Huge spending ahead in infrastructure

UBS Estimates

Boost to infrastructure and real estate

growth

Govt. focus on infrastructure

development

Growth in IT/ ITES services

Strong FDI inflow in real estate,

construction segment

Easy availability of housing loan and

affordable interest rates

Infrastructure and real estate to show strong growth going ahead.

Factors contributing to infrastructure and real estate growth

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Key financials

2009-10

VASCON

Particulars Q1 FY11 Q1 FY10 % Growth

Total Income 2051.1 1407.0 45.8%

Gross Profit 449.1 288.04 55.9%

EBIDTA 266.8 221.5 20.5%

Profit Before Tax 206.5 142.4 45.8%

Profit After Tax 138.4 105.2 31.6%

EPS (Rs.) - diluted 1.54 1.38 11.6%

Rs. in million

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Key financials – Q1 FY11

P & L (consolidated)

Particulars As on 30.06.10 As on 30.06.09

ROCE – annualised (%) 11.19 12.35

ROE – annualised (%) 12.23 14.19

Total Debt (Rs. million) 2,079.4 2,475.2

Net worth (Rs. million) 6,752.3 4,014.7

Debt: Equity ratio 0.31 0.62

Key Ratios (consolidated)

Key financials – Q1 FY11

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EPC Business

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Tamil Nadu State Assembly Complex (Block B), Chennai

Ruby mill, Dadar, Mumbai

HDIL commercial complex, Vidyavihar, Mumbai

Neelkanth Palacia, mall & business centre, Mumbai

Kondhwa Reality, Pune

Savitribai Phule Shikshan Prasarak Mandal, Pandharpur

North Town, Chennai

Sinhagad Technical Education Society, Ambegaon, Pune

Order book ~ Rs. 44,300 millionOrder backlog ~ Rs. 32,300 million

EPC business – ongoing projects

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Significant ongoing projects

Factory – Legrand, Nashik

Pharma Plant - Gopaldas Visram, Mumbai

Bharti Realty Ltd, Ludhiana (Commercial )

North Town, Chennai (Residential)

Aamby Vally (villas), Lonavala (Residential)

TATA Housing, Lonavala (Residential)

Kondhwa Realty, Pune (Residential)

SMCC-Yamazaki Mazak, Pune (Commercial)

New projects bagged during Q1 FY11

Order value of ~ Rs. 2,990 million

EPC business – new projects

SMCC - Sumitomo Mitsui Construction Company

EPC business – completed projects

Project completed during Q1 FY11

Cipla - Indore SEZ

Contract value of ~ INR 1,447 mn.

Construction tenure ~ 18 months

Total constructed area ~ 1.55 mn. sq ft.

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Contract value of ~ INR 2,480 mn.

Construction tenure ~ 15 months

Total constructed area ~ 1.2 mn. sq ft

Multi Level Car Park - Delhi Airport

Real estate Business

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Pune

Dev. potential 25.6

Thane

Dev. potential 19.0

Ahmedabad

Dev. potential 2.7

Nashik

Dev. potential 1.7

Madhurai

Dev. potential 1.6

Aurangabad

Dev. potential 1.4

Goa

Dev. potential 0.6

Chandigarh

Dev. potential 0.3

Coimbatore

Dev. potential 3.3

Hyderabad

Dev. potential 0.6

Belgaum

Dev. potential 0.2

Total development potential ~ 56.8 million sq. ft.

Real estate - land bank

million sq. ft.

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Projects launched during the quarter

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Forest County –phase I

Project

Forest County –phase I

Type Residential

Location Pune

Total saleable area (sq. ft.) 688,355

Total area sold(sq. ft.) 575,680

No. of buildings 9

Total no. of apartments 386

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Willows – phase II

ProjectWillows -phase II

Type Residential

Location Pune



No. of buildings4

(Bld. D,E,F,G)Total no. of apartments 126

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Note : Bookings for bld. F & G is yet to be started.

Vista - phase II

Project Vista- phase II

Type Residential

Location Nashik



No. of buildings4

(Bld. F,G,H,I)


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Note : Bookings for bld. H & F is yet to be started.

Tulip-phase I

Project Tulip -phase I

Type Residential

Location Coimbatore



No. of buildings2

(Bld. A,B)


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Hotel projects

Project Four Points (Duet) Novotel

Location Pune Pune

No. of keys 232 320

Four Points Duet Hotel

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Projects completed during the quarter

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Real estate business – completed projects

Project completed during Q1 FY11

ProjectWillows -

phase I

Type Residential

Location Pune


Total Area Sold(sq. ft.) 152,265

No. of buildings 3


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Forthcoming projects

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Nature Spring, Talegoan, Pune(Approx 57 acres mix development project).

Xotech, Hinjewadi, Pune (2& 3 bhk)

Rosebay, Hadapsar, Pune(2 & 3 bhk).

Tulips - Ph 2, Coimbatore (2, 3, 3.5, 4 bhk)

Projects to be launched in Q2 FY11

Real estate business – forthcoming projects

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Windermere , Koregaon Park, Pune(5 acres, approx. 325,000 sq. ft. high-end residential project & 100,000 sq. ft. high-end commercial project)

Acquisition

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Acquisition

90% of GMP Technical Solutions Pvt. Ltd at a cost of Rs 626 million Turnover of GMP in FY 2010 was Rs 1267 million and PAT Rs 217 million

GMP has 3 divisions: Manufacturing: Clean rooms, office partitions, door sets, storage racks BMS: Integrated business management services; US FDA compliant for

pharma industry QA Technical Services: Validation and certification of weights and measures

Acquisition to yield economies of scale. Synergy to strengthen capability to offer turnkey solutions

Business positioning and Way forward

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Synergizing EPC and Real estate business

1. Risk diversification2. Better quality and faster execution3. Capability of turnkey real estate

projects4. Faster reach to and understanding

of new locations5. EPC facilitates market intelligence

gathering for real estate projects6. Revenue-sharing model that cuts

risks

Benefits

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Employees : Key strength to growth

TogetherEveryoneAchievesMore

Total Income (Rs. million)

No. of employees

Total Income vis-a-vis Manpower

0

200

400

600

800

1000

0

2000

4000

6000

8000

10000

FY06 FY07 FY08 FY09 FY10

Total Income No. of employees

Suzlon One Earth

Global headquarters executed by Vascon on its plot on a built-to-suit basis for Suzlon

Rated Platinum by LEED, scoring 57 out of 58 points Rated 5-star by GRIHA Awarded as Best Corporate Building by AESA Makes optimum use of wind, rain and solar energy Acclaimed as “greenest corporate headquarters on earth” Construction completed on schedule in spite of

overwhelming odds

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Awards during the quarter

LEED—Leadership in Energy and Environment Design GRIHA—Green Rating for Inhabited Habitat Assessment AESA—Architects, Engineers and Surveyors’ Association

Way forward

Leading Player in EPC, Real estate, Hospitality and Infrastructure

Started as a EPC company

Ventured into Real estate

Foray into Hospitality

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Disclaimer

•This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers Limited (the“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase orsubscribe 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 aboutthe Company.

•This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Companymakes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, thetruth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive andmay not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, thisPresentation is expressly excluded.

•Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospectsthat are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performanceand are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertaintiesinclude, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performanceof the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levelsof growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’smarket preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance orachievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes noobligation to update any forward-looking information contained in this Presentation. Any forward looking statements and projections made bythird parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statementsand projections.

•No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”).Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not beoffered, sold, resold, delivered or distributed, directly or indirectly, into the United States or to, or for the account or benefit of, any U.S. Person(as defined in regulation S under the Securities Act).

•The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentationcomes should inform themselves about and observe any such restrictions.

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