Everest Kanto Cylinder Ltd.

June 2010

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of information that is already in the public domain or that is not price sensitive. All actions

and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. It is advised that prior to acting upon this presentation, independent investigation including seeking advice of your financial, legal, tax and professional advisors as to the risks involved may be obtained and necessary due diligence, etc may be done at your end.

This presentation may contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, and political, economic, legal and social conditions in the countries we operate in. This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.

• Established in June, 1978

• Began with a Joint venture with Kanto Koatsu Yoki

Manufacturing Company of Japan

• Pioneer in production and development of Industrial

and CNG cylinders with dominant market share in

South Asia and Middle East

• Largest global player in the Large Pressure Vessel

space

• Three manufacturing plants in India and one each in

Dubai, China and U.S.A.

• Existing capacity of 1 Million cylinders of all sizes

mainly by way of organic and acquisition growth

• Ambitious organic growth plans in India for

enhancing capacity by 500,000 cylinders

• Almost 1500 employees on rolls worldwide

experienced in R&D, production and management

• Quality control processes approved in more than 25

countries

EKC – An Introduction

EKC – Key MilestonesIncorporation of Everest Kanto Cylinder (P) Limited 1978

First commercial production at Aurangabad Plant1981

Commissioning of Tarapur Plant1988

Development of CNG cylinder for the markets1998

Supply of CNG Cascades1998

Export to European countries1998

More than 150,000 cylinders produced and dispatched2001

Commencement of production at Dubai Plant2004

Listing of Equity Shares and Gandhidham unit goes onstream2005

Doubling of Capacity in Dubai and initiation of China Project2007

Commencement of exports to Gulf countries1986

Acquisition of CPI, U.S.A. and commencement of production in China2008

Acquisition of majority stake in gas distribution company2009

EKC – Product Applications

Food and Beverage

Area/Industry of

ApplicationApplications

Fire Fighting Fire Fighting Equipments in

ships,thermal power stations, hospitals,

malls, offices, cinema halls

Auto Public and Private Transport

Industrial Inert Gas, Steel, Metal Industry, Divers,

Mountainers, Power Applications

Welding Cutting and Welding Operations

Healthcare Resipratory Aid in Hospitals, MRI's, Bath

Therapy, Cryosurgery

Food freezing, Beverage Industry, Bottling

Process

EKC – Key Customer profile• Industrial Cylinders

– Praxair

– BOC India Ltd

– Inox Air Products Ltd

– Advanced Silicon

– Air Products

– Air Liquide

• CNG Cascades

– Mahanagar Gas Ltd

– Indraprashtha Gas Ltd

– Bhagyanagar Gas Ltd

– Gujarat Adani

• OEMs for CNG Cylinders

– Hyundai

– Toyota

– Suzuki

– Tata Motors Ltd

– Eicher Motors Ltd

– Ashok Leyland & Co Ltd

– Swaraj Mazda

• Special Cylinders

– Defence Department in India

– US Navy

Automobile CNG Cylinder

Jumbo Trailer Project

India & China

EKC’s Competitive Edge

• First mover advantage in CNG space in Asia

• Existing Production Capabilities & Capacities and expansion plans leading to economies of scale which gives edge over competition

• New manufacturing facilities to adopt cost effective technologies and processes

• Supply Chain Advantage – Relationship with Tenaris going back to 15 years

• Strong Customer relationship especially with OEMs and after market players

• Regulatory approvals in over 25 Countries

GLOBAL CYLINDER MARKET

• Due to global environment concerns coupled with high crude oil prices alternative fuel like CNG would be preferred in coming years

• CNG and speciality gas vessels would provide growth drivers all across the globe

• Estimated global CNG vehicle population globally is 8.5 Million with Asian region accounting for almost 51% (4.4 Million). This represents annual global growth of more than 30% over FY 06 (5.7 Million vehicles) *

• Asian vehicle population grows by 50% over previous year ** • The population of CNG run vehicles is slated to go upto a level of 50

Million by 2020 as per IANGV

* Source : NGV June 2008 issue and Asian NGV Oct 2008 issue

** Source : NGV December 2007 issue

Global NGV growth outlook

• Benefits of Natural Gas Vehicles include� Reduced Particulate and greenhouse gas emissions and safer than most liquid

fuels

� Widespread availability of NG which can also be derived from renewable sources like biogas

� Technically proven and available at lower cost

� Can be used in all types of vehicles

� Minimal processing or refining requirements

• NGV growth has more than doubled during last five years

• As per Gas Vehicles Report dated June 2008, there are 8.5 Million vehicles worldwide and IANGV projects that this would increase to a level of 50 Million vehicles by 2020

Global NGV growth outlook

• Among top 10 countries, the number of NGVs has increased from a level of 1.7 Million in 2001 to a level of 7.6 Million in March 2008

• EKC has a significant presence in six of these countries which still have a low penetration rate of NGVs in the overall vehicle population

• International Gas Union has projected that the total global NGV population shall increase to a level of 100 -200 Million by the year 2030 and the final target shall be announced in 2009

Global NGV statistics – Top Ten countries

Asia and CIS

Rest of World0

1000

2000

3000

4000

NGV Population (in Nos.)

Asia and CIS 319 3683

Rest of World 1386 3917

March-01 March-08

• Top ten countries represent 89% of global NGV population

• Compound Annual Growth rate (CAGR) over last 7 years

- 24% globally

- 42% for Asia and CIS

• Very low penetration rate of NGV vehicles

- 6.1 % globally

- 5.9 % for Asia and CIS

- 2.0% for high growth markets like India and China

76001705Total

12035Ukraine

16022Bangladesh

20136China

2529Colombia

433370Italy

7301Iran

82225India

1533272Brazil

1650200Pakistan

1699735Argentina

March-08March-01Country

No. of NGVs (In ‘000)

ASIAN CYLINDER MARKET

• Growth areas to be concentrated in China, India, Pakistan, Iran, Bangladesh and CIS countries

• Gas availability and infrastructure creation in above countries would lead to accelerated growth in Asia

• China’s committed investments for gas infrastructure amounts to Rmb 30 Bn over 2-3 years which would increase number of gas stations from 486 to almost 2000 by 2012

• Present gas vehicle population of almost 800,000 in India is slated to increase to a level of about 1.5 Million vehicles over next 3 years

• In Iran, as against present number of 294 gas stations, 852 more are under construction and government has reduced import tariffs on NG vehicles by 30% and zero duty on components *

• Pakistan is expected to be the largest user of CNG in the world with more buses and other commercial vehicles getting converted and CNG filling stations increasing to 1923 with 1.65 Million CNG vehicles in January 2008 *.

• EKC ‘s share in overall cylinder market in Pakistan was about 40% in 2007-08 and about 60% of cylinder sales to OEMs in Iran

* Asian NGV October 2008 issue

Natural Gas Scenario to positively impact CNG business in India

• Natural Gas infrastructure spans 8000 Kms with product pipeline of 10000 Kms

• Compressed Gas Distribution (CGD) networks in 19 cities

- More than 0.8 M vehicles on CNG

- More than 0.8 M households connected

• Expression of interest for CGD in 68 cities to be implemented over 2-5 years with investment ranging from US$ 50 – 200 Million in each city

• Projected Gas Supply expected to increase from 80.5 MMSCMD to a level of about 200 MMSCMD in 2010-11

EKC – Manufacturing Facilities

Capacity Utilization has been calculated for finished cylinders onlyand does not include semi finished cylinders made in China

Indiustrial CNG Jumbo Total

India 1979

1-280 and

Jumbo 310,000 300,000 2,000 612,000 486,414 79

Dubai 2003 21-280 - 196,000 - 196,000 154,685 79

China 2008

1-280 and

Jumbo 200,000 1,000 201,000 41,216 N.A.USA 2008 Jumbo - - 3,000 3,000 1,202 40

GRAND TOTAL 310,000 696,000 6,000 1,012,000 683,517 79

Actual

Production

2009-10

Capacity

Utilisation

(%)

Location

Established /

Acquired

Product Range

(In Lts.)

Capacity (In Nos.)

EKC – Historical Key Financial Highlights

TURNOVER (Rs. Million)

CAGR 63%

0

2000

4000

6000

8000

10000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

EBIDTA (Rs. Million)

0

500

1000

1500

2000

2500

3000

EBIDTA (Rs. Million) 89 288 589 1142 1527 2516

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

PAT (Rs. Million)

CAGR 130%

0

500

1000

1500

PAT (Rs. Million) 21 143 324 718 1043 1375

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

EBIDTA Margin (%)

0.0%

10.0%

20.0%

30.0%

40.0%

EBIDTA Margin (%) 12.0% 21.7% 25.0% 26.9% 28.9% 29.4%

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Brief Performance Highlights – FY 2009-10

• The year was marked by slow growth in certain markets and segments due to recessionary situation prevalent across various markets

• EKC was affected both by slowdown in growth as well as consumption of high cost inventory leading to lower margins

• EKC has taken a one time mark down of inventories due to lower Net Realisable Value of the products in line with the accounting standards

• During the year, the method of charging depreciation on fixed assets has been changed from WDV (Written Down Value) to SLM (Straight LineMethod) keeping in mind the useful life of the assets. This change has also been done keeping in mind the impending convergence with IFRS effective April 2011.

• Despite lower operating profits, the operating cash flow for the year has resulted in a surplus of Rs. 192.44 Cr. due to better working capital management

• There has been reduction in overall inventory levels as compared to previous year

• The debt levels have significantly come down from a level of Rs. 622 Cr. In the previous year to Rs. 502 Cr.

Profitability Statement

13.60 4.10 4.00EPS (Rs.)

13,752.63 4,151.05 4,048.79 Profit for the year

-2,860.41 1,903.90 Prior period Depreciation / others

13,752.63 1,290.64 2,144.89 Profit before Prior period adjustments

2,219.34 548.14 1,209.13 Tax

15,971.97 1,838.78 3,354.02 PBT

6,927.80 5,688.34 1,429.00 Depreciation

2,717.48 1,135.39 312.20 Finance charges

(1,887.89)2,235.03 2,434.99 Forex Gain / (Loss)

890.75 864.28 939.36 Other Income

26,614.39 5,563.20 1,720.87 EBITDA

4,264.84 3,590.72 1,862.77 Administrative and sales expenses

6,609.59 7,783.34 2,077.09 Personnel Expenses

37,488.82 16,937.26 5,660.73 Gross Margin

9,034.10 6,247.96 3,291.60 Other Direct Costs

39,132.40 41,780.03 25,954.18 Input Costs

85,655.32 64,965.25 34,906.51 Total Net Sales

691478687212472663Sales Volume (Nos.)

2008-092009-102009-10

ConsolidatedConsolidatedIndia

Particulars

Consolidated Balance Sheet as at 31.03.2010Rs. Lacs

Difference in Variance due to Mix 23,065.22

Difference in Variances due to Sales -2513.66

EVEREST KANTO CYLINDER LIMITED

BALANCE SHEET AS AT 31.03.2010

Rs. Lacs

India Consolidated Consoldiated

As at 31.03.2010

As at

31.03.2010

As at

31.03.2009

SOURCES OF FUNDS

Share Capital 2,023.15 2,023.15 2,023.00

Reserves and Surplus 41,851.81 60,069.36 59,939.42

Minority Interest 24.45 -

Loan Funds 30,720.39 50,154.81 62,205.57

Deferred Tax Liability / (Assets) (Net) 1,415.56 1,088.15 (58.74)

TOTAL 76,010.91 113,359.92 124,109.25

Status of Expansion Projects and

Business Outlook• Ultra Large (Jumbo) Cylinder Plant has been commissioned and commercial

production has started in Q1 2009-10. Order from an international customer for jumbo cylinders has already been executed for 280 cylinders in 2009-10

• Billet Piercing Plant to be operational in Q2 2010-11 and this is expected to lower cost of production thereby making the products more cost competitive

• EKC is venturing into the market for light weight CNG cylinders mainly required by OEMs in Europe and Asia and this project is expected to go into production in Q3 2010-11. This would result in much higher value addition besides providing value to customer

• Due to lower realizations for both Industrial and CNG cylinders in the domestic as well as international markets as well as due to consumption of high cost inventories, margins continued to be under pressure during 2009-10

• Given the stated policy of the Indian Government as well as other countries in the Asian region to expand the availability and distribution of CNG across many more states and cities in the coming months, it is expected that this would offer the impetus for acceleration in the conversion as well as manufacture of CNG driven vehicles

Thank You