VASCONEQNSE13 August 2019

Vascon Engineers Limited has informed the Exchange regarding Investor Presentation

Vascon Engineers Limited

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Date: August 13, 2019 National Stock Exchange of India Limited, To,

BSE Limited, To,

Listing Department, Exchange Plaza, Bandra (E), Mumbai – 400 051 Ref Symbol:

VASCONEQ

Subject: Presentation Update

Dear Sir/ Madam,

The Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001 Ref: Scrip Code:

533156

Please find enclosed Presentation by the Company Post Board meeting.

This is for your information and records.

Thanking you,

Vascon Engineers Limited,

For

Vibhuti Dani Company Secretary and Compliance Officer

Enclosures: as above

This document is signed electronically

INVESTOR PRESENTATION | August 2019

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 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.

 Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties 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 real estate & infrastructure industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s 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 included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

KEY HIGHLIGHTS

EPC Business

Real Estate Business

Rs 1,079 Cr Total Order Book

Rs 949 Cr External Orders

Rs 130 Cr Internal Orders

Witnessing decent traction in sales of Good Life & Windermere projects

Order Intake of Rs 276 Cr in Q1FY20

(Received Rs 104 Cr order from Pune Municipal Commission & Rs 172 Cr order from Tycoons Avanti Projects LLP)

New Sales booking of 46,720 sqft for a total sales value of Rs 44 Cr in Q1FY20

P&L HIGHLIGHTS

Particulars (Rs. Cr)

Standalone

Consolidated

Q1 FY20

Q1 FY19

Q1 FY20

Q1 FY19

Revenue

Other Income

Total Income

Construction Expenses / Material Consumed

Employee Cost#

Other Expenses

EBITDA

EBIDTA Margin (%)

Depreciation

Finance Costs

Profit Before Tax

Tax

Profit After Tax

Other Comprehensive Income

Total Comprehensive Income

95.63

9.91

105.54

76.34

10.74

5.87

12.59

12%

2.04

5.22

5.33

0.09

5.42

93.88

4.12

98.00

69.67

11.86

7.97

8.50

1.84

5.17

1.49

0.34

1.83

130.68

10.80

141.48

97.04

18.21

10.92

15.31

11%

3.54

6.11

5.66

0.09

5.75

136.97

6.71

143.68

104.71

18.56

13.11

7.30

3.15

6.06

(1.91)

0.34

(1.57)

SEGMENTAL PROFIT & LOSS - AFTER ALLOCATION

Particulars (Rs. Cr)

RE#

EPC##

GMP

Inventorised

Total

Revenue

Cost of Sales

Gross Profit

Gross Profit Margin %

Other Income

Employee Cost

Other Expenses

EBITDA

EBIDTA Margin (%)

Depreciation

EBIT

EBIT Margin (%)

Finance Costs

Profit Before Tax

Tax

Profit After Tax

1.00

42.53

37.12

5.41

13%

4.15

4.31

3.61

1.64

0.46

1.18

62.64

47.53

15.11

24%

5.94

6.43

2.69

11.93

19%

1.62

10.31

16%

34.52

20.47

14.05

41%

1.35

7.47

5.19

2.74

1.46

1.28

139.69

106.12

33.57

24%

11.44

18.21

11.49

15.31

11%

3.54

11.77

6.11

5.66

# IT INCLUDES REVENUE & EXPENSES RELATED TO AJANTA ENTERPRISE & PHOENIX VENTURES, IN FINANCIALS SHARE OF PROFIT IS TAKEN (AS PER IND AS ) ## IT INCLUDES INTERNAL EPC ORDER REVENUE AND CONSTRUCTION EXPENSES

VASCON – AT PRESENT

ENGINEERING PROCUREMENT & CONSTRUCTION

One of the leading EPC Company in India

REAL ESTATE DEVELOPMENT

Focus on Affordable Housing

ENGINEERING PROCUREMENT & CONSTRUCTION

EPC BUSINESS

 Construction Experience across various verticals



Executed over 200 projects with construction area of over 50 msft

 Ability to execute around 8 msft per annum



Currently executing around 3 msft p.a. – operating at 40% utilization

 Number of Personnel in Project / Engineering team - 489

 Higher margins Because of Turnkey Capabilities



In-house Design and Engineering team

Ability to demand premium over other construction companies

 New Orders Target



Focus on Affordable Housing

Focus on large and high value civil contracts by Government Agencies and reputed Private Companies

 Generate positive cash flows from all the projects and

re-invest to drive growth

MARQUEE CLIENTS

MAINTAINING CONSISTENT QUALITY STANDARDS ENSURING REPEAT ORDERS

CONSISTENT EXTERNAL ORDER INTAKE

949

508

467

225

276

FY17

FY18

FY19

Q1FY20

Current Order Book

EXECUTION OF NEW ORDERS TO IMPROVE REVENUE & CAPACITY UTILISATION… LEADING TO BETTER OPERATING MARGINS

EXISTING ORDER BOOK

Project

Location

Amt (Rs. Cr)

External Order book

Tycoon Adhiraj PMC-Affordable Housing Kailash Enclave Adampur Airport Ayyalur Godrej Greens Adoni Sheth Creators – Malad (I&II) Godrej Laguna Sriram Educational Trust Everest Enclave TNMC Other Projects Total

Internal Order book

Windermere-Bunglows Hadapsar School Forest Edge Katvi-Affordable Housing Total

Total EPC Business Order book

Mumbai Mumbai Pune Lucknow Adampur Ayyalur,Andhra Pradesh Pune Adoni, Andhra Pradesh Mumbai Chennai Chennai Lucknow Chennai

Pune Pune Pune Talegaon, Pune

172 124 103 84 81 78 62 52 43 34 26 26 8 56 949

33 11 12 74 130 1,079

READY TO CAPITALIZE ON THE GROWTH OPPORTUNITIES

Housing for all 2022

Education & Hospitality

1. Opportunity under PMAY(U), Smart Cities, AMRUT, HIRDAY.

2. Housing shortage of 19 million in Urban Areas

3. Government investment of Rs. 2 trillion for Housing for all 2022

1. Government focus on developing Educational Institutions

and Hospitals

2. Higher Education funding agency (HEFA) outlaid funding of

Rs. 53 billion for development of IITs, IIMs, IISERs, IISc, NIT and 44 new KVs

Airports

1. Government aims to spend Rs. 250 billion for development

of 20 plus airports over the next 5 years

Growing demand for Commercial and Retail Space

1. Organised Retail to grow by 25-30% annually

2. Huge Demand for Commercial Space in Metros due to rapid

growth in service Sector

GOVERNMENT INITIATIVES IN REAL ESTATE SECTOR

Pradhan Mantri Awas Yojana – Urban - Sanctioned Rs. 4.83 lakh crore for the Construction of over 81 lakh houses, construction started of about 47 lakh houses

Pradhan Mantri Awas Yojana – Gramin aims to achieve "Housing for All" by 2022- In Second Phase i.e. 2019-20 to 2021-22, to provide 1.95 crore houses with basic amenities

Investment of Rs. 100 lakh crore in infrastructure intended over the next five years

To use Joint development and concession mechanisms for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs

Government launched The Liquidity Infusion Facility (LIFT) scheme to infuse Rs. 10,000 crore in housing finance sector which will be valid upto 30th June 2020. HFCs registered with NHBs with minimum internal rating of ‘B’ will be eligible to withdraw maximum amount of Rs. 500 crore under this scheme

REAL-ESTATE DEVELOPMENT

REAL ESTATE BUSINESS

BRAND EQUITY Landmark developments (Windermere, Forest County and Willows) have established the Brand Vascon in Pune Market

END-TO-END CAPABILITIES In-house Design and Construction team gives us a unique advantage over other Real Estate Developers

LOW OPERATING COST Flat organization structure with agile decision reduces operating cost

ASSET LIGHT MODEL JV and JDA with land owners with low upfront deposit

SUCCESSFULLY LAUNCHED REAL ESTATE PROJECTS

PROJECTS

Forest Edge (JV)

Windermere (JV)#

Vascon Goodlife – Value Home (Own)

Forest County

Xotech

DEV. AREA (MSFT)

0.08

0.38

0.30

0.18

0.04

LAUNCH

STATUS

Jan 2018

Fully sold

Mar 2018

55% sold

May 2018

60% sold

Dec 2018

75% sold

Oct 2018

Fully Sold

REAL ESTATE SALES (RS CR)

272

197

FY18

FY19

Q1FY20

“FOREST EDGE” – KHARADI, PUNE

VASCON GOODLIFE - KATVI, TALEGAON

RE-LAUNCH OF WINDERMERE#

XOTECH- PUNE

FOREST COUNTY - KHARADI

NEW SALE BOOKING OF ~46,720 SQFT FOR A TOTAL SALES VALUE OF ~RS. 44 CR IN Q1FY20 AGAINST SALE

BOOKING OF 4,20,998 SQFT FOR A TOTAL SALES VALUE OF ~RS. 272 CR IN FY19

CURRENT REAL ESTATE PROJECTS UNDER DEVELOPMENT

Project Name

Location

Vascon Share

Project Area

Area Sold

Sale Value Collection Sale Value Collection

Rev. Recognized

Total

Vascon Share

Type

msft

Rs. Cr

Forest Edge

Forest County

Pune

50%

0.08

0.18

0.11

Windmere Residential

Pune

JDA

45%

0.38

0.21

Platinum Square (I&II)

Pune

70%

0.13

Vascon GoodLife

Talegaon

Own

100%

0.46

0.18

Xotech (I&II)

Hinjewadi

50%

0.08

244

133

173

111

110

105

Total

1.31

0.79

630

364

361

203

216

REAL ESTATE PROJECTS PIPELINE

Sr. No.

Projects

Type

Segment

Saleable Area

Expected Sales Value

Coimbatore

Forest Edge - Tower B

Madurai

Bavdhan - Comm

Willows - Comm

Forest County - HDH

Kalyani Nagar - Comm

Kalyani Nagar

Total

JDA

Residential

Commercial

Residential

Commercial

Residential

msft

(Rs. in Cr)

0.33

0.08

0.49

0.23

0.35

0.30

0.50

2.49

179

220

158

191

245

330

550

1,926

THANK YOU!

Mr. Punit Bhayani punit@vascon.com

Mr. Vikash Verma / Ms. Hina Agarwal vikash.verma@stellar-ir.com hina@stellar-ir.com

Vascon Weikfield Chambers, Pune - 411014

Kanakia Wall Street, Andheri (East), Mumbai 400 093

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