areva t&d india ltd -webmeet 3rd march 2008 copyrights ... meet/122275_20080303.pdf · areva...

Areva T&D India Ltd -Webmeet 3rd March 2008 1Copyrights reserved


Second

AREVA T&D India Ltd

Investors webcast & conference call

The conference will start at 1630 hrs …

For trouble shoot, please call Mr. Sheik Mohideen

at 09840889955

WELCOME !


Disclaimer

� Forward-looking statements

� This document contains forward-looking statements and information.

These statements include financial forecasts and estimates as well as

the assumptions on which they are based, statements related to

projects, objectives and expectations concerning future operations,

products and services or future performance. Although the management

believes that these forward-looking statements are reasonable,

Interested parties are hereby advised that these forward-looking

statements are subject to numerous risks and uncertainties that are

difficult to foresee and generally beyond AREVA T&D India’s control,


AREVA T&D India LtdInvestors webcast & conference call

Noida, 03 March 2008

Rathin Basu

Country President/Managing Director

Ravi Arthur

Regional Finance Director


The Meet Highlights

�Top Stories

�Prestigious projects commissioned

�Current T&D Market Scenario

�AREVA T&D India Ltd.- Financial Performance

�AREVA T&D India Ltd.-Stock Price Performance

�Dividends

�Outlook


24,180

29,343

15,282

0

10,000

20,000

30,000

2005 2006 2007

In MINR

Orders Intake on the rise

* Like for like

*CAGR 39%

Order intake almost double in 2 years


Major success with Utilities

Order Backlog Growth +46%

� Central Utilities:

� POWER GRID: 1,497 MINR

� NTPC: 800 MINR

� State Utilities:

� MPPTCL: 1,460 MINR

� Others: GETCO, HVPNL, DPL, PSEB, ASEB etc

� Private Utilities:

� Reliance Energy: 1,224 MINR

� Others: TATA Power, LANCO, ADANI, TORRENT Power…

Good share in the 3 segments


Good Progress in the Industry

� ESSAR Steel: 651 MINR

� Neelachal Ispat: 223 MINR

� Dalmia Cement: 208 MINR

� Salem Steel: 194 MINR

� Utkal Aluminium: 182 MINR

� TATA Motors: Distribution Transformers for Nano

Wide coverage: Metals, Processing, Oil & Gas.,


Leadership in GIS Market

� NPC Bhavini: 685 MINR

� HVPNL: 440 MINR

� MESTCL: 340 MINR

� L&T for Delhi Metro: 230 MINR

Increasing land price is a key driver


Quantum Jump in Exports

� QATAR:

� 126 M€ Order from KAHRAMA Water & Electricity

to supply six Turnkey 66 kV GIS Substations.

� KENYA:

� 26 M$ Order from Kenya Power & Light for turnkey substations for the distribution network

Turnkey project is a new avenue for growth


16,058

20,063

10,656

0

10,000

20,000

2005 2006 2007

In MINR

Continuous topline increase since 2005

* Like for like

*CAGR 37%

Steadily increasing sales – nearly double since 2005


Profitable Growth

17.6%*

7.5%*

20052005 2007200720062006

12.8%*

A steady improvement – more than double in 2 years

* Operating Profit in % of Sales


Capex to support Growth

Order Backlog Growth +46%

� Brown Field Expansion improved Capacity of plants:

� Use of lean manufacturing & six sigma methodology

� Launch of new Products

� Green Field Expansion:

� Baroda: 5 BINR for Large Power Transformers up to 1,200 kV, HVDC & Rectifier Transformers, Distribution Transformers, Medium Voltage and Secondary Distribution

� Hosur: 1 BINR for Instrument transformers up to 1,200 kV, R&D centre for Instrument Transformers

� Padappai, Chennai: 1 BINR for Circuit Breakers up to 1,200 kV, High Voltage GIS, Disconnectors

Capacity expansion & Localisation of future technology


Attract, Develop & RetainRecruiting is on the critical path

200620052004 2007

3000

3400

3800

26002700

3500

2800

3200

Areva T&D India is growing attracting fresh talent


Prestigious Projects commissioned in 2007

� 765 kV Turnkey Substation for NTPC Sipat

� Inaugurated by Hon’ble Minister of Power Shri SushilkumarShinde on 20th Jan 2007

� Largest Generating Transformer 370 MVA/220 kV delivered to Reliance Energy

� State-of-the-art City Distribution SCADA Systems commissioned (9 out of 10 Circles done by AREVA T&D India) for MSETCL- a model for other SEBs to emulate with APDRP 2 funds

> Power Distribution SCADA – MSEDCL Model – 14th Feb 2008 – Sales Meet, Noida5 5/22

“Enhanced SCADA” Project ….. An APDRP Initiative

» Nine of Ten Circles Done By AREVA T&D Systems

1. AMRAVATI

2. NAGPUR

3. MALEGAON

4. NASHIK

5. AURANGABAD

6. PIMPRI

7. NANDED

8. SANGLI

9. KOLHAPUR

1

23

45

67

8

9

� Vertically Organised Circle Wise Distribution Command &

Monitoring System

Board Meeting, 11th Sept-0732

370MVA – largest GT

ever made in India


AREVA T&D India - Structure after the merger

Effective 1st Jan 2006: One legal entity in India

AREVA T&D India Ltd

Recap:

Share holding :

AREVA T&D Group:72%

Public holding: 28%


Recent events Q4

�Tech Innovation Award for SF6 Circuit Breaker

� Padappai - Local manufacture of

� Circuit breakers 1200KV

� High Voltage GIS

� Disconnectors

� GIS localisation for the first time

� Inaugurated by the Tamil- Nadu State electricity minister in November 2007


Recent events Jan - 2008

�Launch of HYpact & ITR products

�Focus on Packaged Substations

� ELECRAMA 2008 - Jan 18-22

�Best stall Award in 400 sqm+ category


AREVA T&D India Ltd.- Financial Performance Q4 2007 & FY 2007

20Areva T&D India Ltd -Webmeet 3rd March 2008 Copyrights reserved

Key data for Q4 2007

In MINR Q4 2006 Q4 2007 ∆ 07/06

Sales revenue 5,009 7,332 46.4%

Operating income 824 1,421 72.5%

% of sales revenue 16.5% 19.4%

Profit After Tax 516 839 62.6%



Key data 12 months to December 2007

In MINR

Actual

2006

Actual

2007

∆ 07/06

Sales revenue 16,058 20,063 24.9%

Operating income 2,062 3,522 70.8%

% of sales revenue 12.8% 17.6% 4.8 pt

Profit After Tax 1,370 2,163 57.9%


Backlog 18,771 27,465 46.3%


4.8 P.Pts83.3%88.1%Total

0.7 P.Pts 11.4%12.1%Other Expenditure

0.0 P.Pts 1.2%1.2%Depreciation

(0.4) P.Pts7.6%7.2%Employees cost

4.4 P.Pts63.2%67.6%Consumption of materials

∆ 07/06Actual 2007

Actual 2006As a % of sales revenue

Product mix & enhanced project management results in improved operating margins

Breakup of cost


AREVA T&D India Ltd.-Stock Price Performance


Relative Share price (average) movement

100%

150%

200%

250%

300%

Ma

r-07

Ap

r-07

Ma

y-0

7

Ju

n-0

7

Ju

l-0

7

Au

g-0

7

Se

p-0

7

Oc

t-0

7

No

v-0

7

De

c-0

7

Ja

n-0

8

Fe

b-0

8

Months

Ind

ex

AREVA T&D India BSE - Sensex

Areva T&D India Shares outperformed the benchmark

Sensex Index handsomely in the last 1 year


Dividends

90%

25%

20052005 2007200720062006

60%

9 Months


Outlook

� Continue to strengthen the future

�People

�Capex

�Technology

� Well positioned to grab opportunities in the emerging ultra

mega power projects in 2008 onwards

� Continue our journey of profitable growth in 2008


Next meeting

� Get together with global Areva T&D Chairman & CEO,

CFO and Country President & Managing Director on the

8th April in Mumbai

� The AGM will be held on 25th of April,2008


Please dial your nearest city number for Q&A

Please wait for Moderator instruction and

Press ‘* 1’ to register for your Question

You may be in queue, so please wait for your turn.

Do not hang up your phone !

Q & A Session !

Mumbai - (+91 22) 27883360

Mumbai - (+91 22) 44223060

Bangalore - (+91 80) 22378260

Bangalore - (+91 80) 44223060

Chennai - (+91 44) 28310760

Chennai - (+91 44) 44223060

Delhi - (+91 11) 44223061

Delhi - (+91 11) 26540761

Hyderabad - (+91 40) 44223060

Hyderabad - (+91 40) 23488260


AREVA T&D India Ltd.


Income Statement

In MINRDecember

2007 (3M)

December

2006 (3M)

December

2007 (12M)

December

2006 (12M)

Net Sales 7332 5009 20063 16058

Other Income 83 84 178 151

Expenditure

- Material costs 4587 3457 12671 10851

- Staff cost 460 326 1532 1163

- Other Expenditure 881 432 2285 1947

Operating Profit Before Interest and

Depreciation 1487 879 3753 2249

Depreciation 66 55 231 187

Operating Profit before Interest 1421 824 3522 2062

Interest 49 27 85 44

Operating Profit 1372 797 3437 2018

VSS and related costs 13 12 -5 -27

Profit on sale of Non T&D business 0 98

Profit Before Tax 1385 809 3432 2089

Tax expenses 546 293 1269 719

Profit After Tax 839 516 2163 1370


Balance Sheet

In MINRDecember

2007

December

2006

Source

Share capital 478 478

Reserves and surplus 5,015 3,357

Loan funds 1,012 33

6,505 3,868

Applications

Fixed assets, Net 2,293 1,134

Investments 97

Deferred tax, net 283 251

Current assets

Inventories 2,729 2,386

Debtors 10,286 6,237

Cash and bank 230 524

Loans and advances 1,346 1,046

Payment received in advance -1,887 -1,700

Current liabilities and provisions -8,775 -6,107

6,505 3,868


Cash Flow

In MINRDecember

2007 (12M)

December

2006 (12M)

Net Profit before tax 3,432 2,089

Adjustments in profits for non cash items 495 288

Increase in Trade and other receivables -4,448 -2,171

Increase in Inventories -343 -580

Increase in Payables, liabilities and provisions 2,407 1,309

Employee VSS payments -20 -28

Income tax payments -1,114 -687

Net cash from operating activities 409 220

Capital expenditure -1,375 -376

Sale of business and others 98 421

Interest received 14 61

Net cash from investing activities -1,263 106

Proceeds / (Repayment) of loans 979 -157

Interest paid -91 -36

Dividend paid -332 -112

Net cash from financing activities 556 -305

Net increase / (Decrease) in Cash -298 21

areva t&d india ltd -webmeet 3rd march 2008 copyrights ... meet/122275_20080303.pdf · areva...

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