NESCO

NESCOLIMITED NescoCenter nesco WesternExpressHighway Goregaon(East) Mumbai400063 T +912266450123 F +912266450101 E contact@nesco.in W www.nesco.in 28 March 2019 BSE Limited The National Stock Exchange of India Limited Department of Corporate Services 5th Floor, Exchange Plaza, 25th Floor, Phiroze JeejeebhoyTowers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400001 Mumbai - 400051 Scrip Code : 505355 Symbol : NESCO Lb : Investor Presentation Dear Sir, Please find attached the Presentation made to the Analyst/ Institutional Investors. This is for your information and record. Thanking you Yours faithfully, For Nesco Limited Jinal J. Shah Company Secretary and Compliance Officer Encl : As above Nesco Limited Nesco Center, Western Express Highway, Goregaon (East), Mumbai 400063 Maharahstra, India CIN L17100MH1946PLC004886 1 Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Nesco 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. This Presentation may contain forward-looking statements based on reasonable beliefs and assumptions of the management of the Company, which are expressed in good faith. Such statements involve uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such statements. By their nature, forward-looking statements inherently involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such statements are not guarantees of future performance and actual results may differ from those specified in such statements as a result of various such factors and assumptions. No assurance is being provided that the assumptions underlying such forward-looking statements are free from errors. 2 The 80 years 1939 Jethabhai V. Patel started ‘Standard Engineering Company’ a small engineering workshop with 5 workmen in a hired premises at Byculla, Mumbai 1950’s Expanded operations to Parel and SantaCruz with foundry, fabrication, machining and assembly facilities for manufacture of capital equipments 1960’s - Sumant J. Patel joined after completing his Mechanical Engineering; course at Wharton School of Business and graduating from the University of Pennsylvania The Company went public with equity shares Purchased ~ 70 acres land at Goregaon, Mumbai. Capital equipments manufactured by Company – (1) Forging Hammers and presses in collaboration with B&S Massey Ltd; (2) Surface preparation equipment in collaboration with Wheelabrator Corporation; (4) Blow room textile machinery in collaboration with Trutzchler GmbH; (4) Oil recovery equipment 1970’s - Acquired land at Karamsad / Vishnoli, Gujarat and expanded manufacturing operations 1990’s - Diversified into Exhibition & Convention Centre. Retained the surface preparation equipment business and shifted to Gujarat. Acquired land at Vishnoli, Gujarat. 2000’s - Krishna S. Patel joins after completing his Business Management course and graduating from Pennsylvania State University. Further diversified into Private IT Park. 2010’s - New Business Divisions Professional management team, continues to be formed (HOD’s / CFO) 3 Performance Profit and Loss - Consolidated (Rs. Millions) Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Nesco IT Park 478 907 1,244 1,419 1,454 Bombay Exhibition Centre 949 859 1,118 1,328 1,297 s e u Indabrator 184 179 279 339 264 n e v Investments 203 286 329 430 361 e R Hospitality Services - - - 56 204 Total Revenues 1,814 2,231 2,971 3,572 3,580 Total Operating Expenses 534 565 757 996 1,034 EBIDTA 1,280 1,666 2,214 2,575 2,546 EBIDTA Margin 71% 75% 75% 72% 71% Depreciation and amortization expense 110 67 67 81 110 EBIT 1,170 1,599 2,147 2,494 2,435 EBIT Margin 64% 72% 72% 70% 68% Finance costs 1 1 40 50 56 Profit Before Tax 1,169 1,598 2,107 2,444 2,379 Profit Before Tax (% to Revenue) 64% 72% 71% 68% 66% Tax 359 481 666 745 592 Tax Rate 30.7% 30.1% 31.6% 30.5% 24.9% Profit After Tax 810 1,116 1,441 1,699 1,787 Total Other Comprehensive Income - - (1) (1) 1 Net Profit After Tax 810 1,116 1,440 1,697 1,788 Basic & Diluted EPS 57.5 79.2 102.3 24.12 25.36 Note - EPS for 2017 and 2018 are after considering the 1:5 Split effected on 18 September 2017 4 CashFlow and Balance Sheet Cash Flow (Rs. Millions) FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Profit before change in operating assets and liabilities 1,132 1,423 1,877 2,106 2,147 Increase/(Decrease) in other operating liabilities 399 84 102 96 (139) Income Tax paid (360) (481) (613) (683) (574) Cash generated from business 1,171 1,026 1,366 1,520 1,435 Fixed Assets (Net) - (Addition) / Reduction (132) (1,011) (1,000) (1,552) (1,373) Investments (Net) - (Addition) / Reduction (1,100) (157) (131) (7) 125 Others (Net) 165 252 30 29 17 Dividend paid (including tax) (82) (107) (108) (144) (187) Net Cash Flow used in financing activities (1,149) (1,022) (1,210) (1,675) (1,418) Balance Sheet (Rs. Millions) Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Property, plant and equipment 1,598 1,592 1,648 1,878 2,285 Capital work-in-progress 48 998 1,434 2,623 3,564 Other non current assets 24 2,832 3,708 4,627 4,716 Current Assets 3,936 1,520 1,612 1,187 1,178 Total - Assets 5,605 6,941 8,402 10,316 11,743 Equity share capital 141 141 141 141 141 Other equity 4,247 5,483 6,672 8,365 9,946 Total Equity 4,388 5,624 6,813 8,506 10,087 Total Non-current Liabilities 765 885 1,098 1,198 421 Total Current Liabilities 452 432 491 611 1,235 Total - Equity and Liabilities 5,605 6,941 8,402 10,316 11,743 5 Goregaon Land - Potential Area in Sq. Mtr Particulars IT Park BECC Others Total Plot Area 1 ,70,451 50,000 2 7,903 2 ,48,354 Potential - FSI Area 6 ,45,685 2 ,70,000 - 9 ,15,685 Potential - Built up Area 1 2,26,801 5 ,13,000 - 1 7,39,801 Existing - Built up Area 2 ,43,030 6 7,390 - 3 ,10,420 Existing - Built up Area to be retained 2 ,32,342 - - 2 ,32,342 Potential - Future Development 9 ,94,459 5 ,13,000 - 1 5,07,459 Note - Area calculations are as per the provisions of DCPR 2034 7 Nesco Realty (IT Park) Tower 03 Tower 04 8 Nesco Realty (IT Park – Building 4) Development Size Approx. 1.2 mn sq ft Completion Date 30 April 2019 Building Structure 3 Basements + Ground + Mezzanine + 3 Podium + 13 Office floors Wings A, B, C Office Floor Plate 4th to 16th floors Type Of Façade Natural Stone + Double Glazed Unitized System Super Low E Rated Glass Structure RCC framed, with PT Slab Air Conditioning System Centralized Air-Conditioning (High efficiency, HT water cooled chillers) Power Back-up 100% power back-up via HT DG sets Master Plan HOK, Chicago Civil Larsen & Toubro (ECC) Structural Sterling Engineering Services Eskayem Facade Pridemann Interiors IBA Lifts Hitachi Electricals / FF / Plumbing Sterling Wilson 9 Indabrator ➢ Market leader and largest manufacturer in India of Surface preparation equipments. ➢ Established in 1964 as a joint venture with Wheelabrator Corp. of USA. Later Wheelabrator’s equity was bought over by Nesco and became a division of Nesco Limited ➢ Has three manufacturing units in Gujarat for Shot blasting machines, shot peening machines, painting booth systems, plants for coach cleaning and other application, related castings and spares and abrasives making it the only Company in India and one of the few companies in the world to have all facilities inhouse. ➢ Infrastructure of complete assembly and trial runs of largest blast cleaning and shot peening machines & paint booth systems ➢ Capacity expansion and consolidation at the Vishnoli unit ➢ Exploring opportunities in line extension (product) and export geographies (sales) 11 12 H H H H H H C H a a a a a a u a ll 0 ll 0 ll 0 ll 0 ll 0 ll 0 r r e ll 0 1 2 5 6 7 7 n 8 A / t ( P G S r r a o a l p P n e o B a d e a b s e o m r t i l e d ) c b u A a y l a r e E r s a x h ib it io n C e n t e r A r e a ( S q 2 1 1 5 7 1 . M 0 , 0 2 , 5 7 , 5 2 , 0 4 , 5 1 , 0 , 5 5 , 0 t 0 0 0 0 0 0 0 0 r 0 0 0 0 0 0 0 0 ) Nesco Foods Segments Exhibition - Indoor Catering (Organiser / Exhibitor / Visitor) Exhibition - Food Court Banquets / Corporate (The Grande) IT Park - Food Court IT Park - Corporate ODC Other Initiatives – New + Future Foods Events Exhibitions Hotels Realty 13