TDPOWERSYS

TD POWER SYSTEMS LIMITED June 2019 Company Presentation 1 BUSINESS STRUCTURE Manufacturer of AC Generators (Up to 200 MW) o Diversified portfolio customized for a wide range of turbines (steam, gas, hydro and wind) and engines (diesel and gas) o Since inception, manufactured 4,221 generators, including generators exported to 73 Manufacturing countries, with aggregate output capacity of 30,680 MW o Three manufacturing facilities in Bangalore, backed by captive power/water supplies and a well-developed ancillary vendor network o Sales through OEM’s, which are turbine and engine manufacturers; strong engineering consultant relationships allow deep involvement in project tendering Projects business (Turbine Generator Island projects of output capacity up to 52 MW) o Steam turbine power plant projects combining TDPS’ generators with Japanese turbines Projects o Completed 110 TG island projects & 14 BTG projects with aggregate output capacity of 3,243 MW o Projects executed in India, Uganda, Kenya, Zambia and the Philippines 2 STATE OF THE ART MANUFACTURING FACILITIES AND COST EFFICIENT PRODUCTION Manufacturing units with advanced machines help in delivering competitively priced products with the highest quality standards Unit I - 157,624 sq ft ISO 9001:2008 compliant Core building, Coil making, Winding & Machining Impregnation and curing Balancing manufacturing units in Final assembly and testing Bangalore Material Handling & General Facilities Power House R&D Centre Quality lab and instruments Unit I Factory Unit II – 219,756 sq ft Core building, Coil making, Winding & Machining Impregnation and curing Balancing Final assembly and testing Material Handling & General Facilities Power House R&D Centre Quality lab and instruments Unit II Factory 2 Pole Factory – 78,449 sq ft Core building, Coil making, & Winding Impregnation and curing Final assembly and testing Material Handling & General Facilities Power House (Common with Unit 2) R&D Centre (Common with Unit 2) Quality lab (Common with Unit 2) and instruments 2 Pole Factory 3 FINANCIALS : FY’20 Q1 Particulars (Rs Millions) FY 20 Q1 FY 19 Q1 Total Income 931.53 750.44 (excluding excise duty) EBITDA 52.14 (16.92) Margins (%) 5.60% (2.25%) Depreciation 61.59 64.30 Interest 11.65 5.35 PBT (21.09) (86.57) Tax (7.68) (7.85) PAT (13.41) (78.72) PAT after OCI (19.43) (79.49) 4 PENDING ORDER (Rs. Mn) 12,000 10,625 10,315 10,000 8,000 6,000 4,000 2,000 309 - Manufacturing Projects Business Total June - 2019 - Rs Millions 10,315 309 10,625 Domestic 996 309 1,305 Exports 717 - 717 Deemed Export 1,124 - 1,124 Domestic - Railways 7,478 - 7,478 5 REVENUE ANALYSIS (Rs. Mn) 1,400 1,147 1,164 1,200 1,000 800 600 400 200 16 - Manufacturing Projects Business TOTAL FY 20 Q1 - Rs Millions 1,147 16 1,164 Domestic 601 16 618 Exports 420 0.37 421 Deemed Export 126 - 126 * Prior to inter-segment and inter-company eliminations 6 BUSINESS SEGMENT : MANUFACTURING Business highlights AC Generators for various applications  One of the leading manufacturers of AC Generators in the Turbines range of 1 MW up to 200 MW for prime movers such as Steam Gas Hydro Wind steam & gas, and upto 52 MW for hydro, wind turbines, Up to 200 MW Up to 20 Mw Horizontal - Up to 15 MW 3 MW diesel and gas engines. Vertical – Up to 35 MW Locomotive Engines  4,221 generators supplied as of June 30, 2019 with an Diesel Diesel Gas aggregate output capacity of over 30,680 MW in 73 Up to 3 MW Up to 15 MW Up to 12MW Countries. Special Applications Other Generators  Three manufacturing facilities in Bangalore equipped with For Motor /transformer testing Geo Thermal / Solar application the latest technology. Customized  Our generators have been approved by leading Key Segment Financials (Rs. Mn) engineering consultants. 5,000 4,729 10% 9% 4,500 4,252 9% 4,000 3,816 8% 8% Revenue Analysis FY 20 Q1 – Consol Levels (Rs. 1,147 Mn) 3,462 7% 3,500 7% 3,000 6% 6% 5% 2,500 5% 601 2,000 4% 1,500 3% 1,147 420 1,000 2% 500 352 245 229 373 1% 64 - 0% 126 FY16 FY17 FY18 FY19 FY20 Q1 Revenue EBITD EBITD Margin Segmental revenues without inter-segment & inter-company elimination. Segmental Revenue & EBIT7D margins are on consol levels after adjusting income/expenses of wholly owned subsidiary. Domestic Exports Deemed Export EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization 7 BUSINESS SEGMENT : MANUFACTURING Product-wise sales (%) Key end user industries (%) 100% 10 90 0% % 1 3 1 % % 1 2 3 % % 6% 1 20 9 %% % 1 05 4 %% % 90% 21% 30% 32% 20% 32% 80% 80% 9% 7% 28% 5% 6% Others 70% 11% 19% Others 5 6 7 0 0 0 % % % 29% 29% 1 7 8 % % 38% 14% T G r a a s ction 5 6 0 0 % % 2 2 9 % % 1 1 3 % % 28% 2% 1 1 0 4 2 % % % G M H a y e s d t r a o l 40% Diesel 40% 29% 4% 38% 10% Sugar 30% 11% 0% 30% 61% Hydro 18% Traction 20% 49% 49% 41% 37% Steam 1 2 0 0 % % 26% 18% 10% 2 9 % % 32% Power 10% 10% 8% 11% 0% 0% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 * Others include Chemical, Food, Paper, Textile, Process, Wind, Distillery, Fertilizer etc *Other units include generators for transformer motor testing applications not reflected in charts above Pending Order June 2019 (Rs. 10,315 Mn) Top Ten Customer Revenue (%) 8,000 7,478 78% 78% 78% 67% 7,000 6,000 59% 5,000 4,000 3,000 2,000 996 1,124 717 1,000 - Domestic Exports Deemed Export Domestic - Railways FY15 FY16 FY17 FY18 FY19 Product portfolio spread across diverse and loyal customer base 8 BUSINESS SEGMENT: PROJECT BUSINESS Business highlights  TG Projects for steam turbine power plants with output capacity of up to 52 MW done under TD Power Systems Ltd  Executed 124 projects aggregating 3,243 MW in India and abroad (110 TG island projects and 14 BTG island projects)  Experienced teams with established track record and reputation for efficient project management  Power Projects order book as on June 30, 2019 stands at Rs. 309 Mn TG Projects including Japan WOS - Key Segment Financials (Rs Mn) 1,400 20% 1,248 8% -1% 1,200 4% 0.3% 0% 1,000 -20% 800 685 611 628 600 -40% 400 -60% 200 98 28 2 16 -80% - -83.9% FY16 FY17 FY1-86 FY19 FY20 Q1 (200) -14 -100% Revenue EBITD EBITD Margin Segmental revenues without inter-segment elimination, including Japan subsidiary EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization Established track record of executing power projects 9 FINANCIAL TRACK RECORD 6,000 Segmental Revenues Consolidated (Rs Mn) 5,000 4,000 3,000 2,000 1,000 - FY16 FY17 FY18 FY19 FY20 Q1 EPC 231 17 - - - Project Business 1,248 685 611 628 16 Manufacturing 3,816 3,462 4,252 4,729 1,147 Manufacturing Project Business EPC Segmental revenues without inter-segment elimination EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income 10 FINANCIAL TRACK RECORD Segmental EBITDA Consolidated (Rs Mn) 500 400 300 200 100 - (100) (200) (300) FY16 FY17 FY18 FY19 FY20 Q1 EPC (218) (22) (11) (16) (0) Project Business 98 28 (6) 2 (14) Manufacturing 352 245 229 373 64 Manufacturing Project Business EPC Segmental revenues without inter-segment elimination EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income 11 P & L Snapshot Consolidated Rs Mn FY16 FY 17 FY 18 FY 19 Jun-19 Sales 5,068 3,799 4,349 4,590 895 EBITDA 67 82 84 272 16 Depreciation (incl. Amortization) 288 279 271 260 62 EBIT (221) (196) (187) 12 (46) Other Income 202 202 159 92 36 Interest and Finance Charges 50 41 67 28 12 PBT (69) (36) (95) 75 (21) Tax 23 8 49 43 (8) Other Comprehensive Income (2) (2) (3) (6) Restated PAT (92) (42) (142) 29 (19) Minority Interest 0 0 0 0 0 Restated PAT after minority interest (92) (42) (142) 29 (19) EBITDA margin (%) 1.32% 2.17% 1.92% 5.9% 1.8% PAT margin (%) (1.8%) (1.1%) (3.3%) 0.6% (2.2%) EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income 12 BALANCE SHEET SNAPSHOT Consolidated As on Rs Mn Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Source of Funds 5,162 5,271 5,274 4,845 4,890 Net Worth 4,733 4,705 4,494 4,155 4,127 Minority Interest Borrowings 276 453 686 614 652 Deferred Tax Liability 153 112 94 76 111 Uses of Funds 5,162 5,271 5,274 4,845 4,890 Gross Block 3,681 3,691 3,732 3,826 3,843 Less :- Depreciation 1,136 1,382 1,634 1,865 1,925 Net Block 2,545 2,309 2,098 1,961 1,919 CWIP 7 7 6 15 8 Investments 100 100 Technical Knowhow 37 25 35 17 16 Net Working Capital incl. cash 2,574 2,931 3,135 2,752 2,848 Current Assets 5,340 5,112 4,946 5,388 5,304 Inventories 881 800 817 1,126 1,536 Sundry Debtors 1,552 1,605 1,851 2,287 1,532 Cash and Bank Balances 2,258 2,146 1,684 1,289 1,488 Loans & Advances 648 560 594 686 748 Current Liabilities 2,567 2,106 1,742 2,569 2,388 Provisions 200 74 68 67 68 EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income 13 SHAREHOLDING STRUCTURE Shareholding % TDPS Stock Price Movement 250 2.7% Promoters 230 2.4% 210 16.0% Mutual Funds 190 170 150 Foreign Institutional 2.7% 130 Investors 110 58.5% Individuals 90 70 17.7% 50 Corporate Bodies 30 Others 8-Sep-11 9-Aug-19 TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods) As on 30th June 2019 14