WABAG

___________________________________________________________________________________ An ISO 9001 Company May 24, 2023 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Floor 25, P J Towers, Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: WABAG BSE Scrip Code: 533269 Dear Sir/Madam, Sub: Presentations made at the Investors' Conference call/meet of VA Tech Wabag Limited – “Company’s Business & Outlook post Q4 & FY23 Results” with Investors/Analysts/ Several funds Ref : Our earlier communication dt. May 23, 2023 Pursuant to Regulation 30(6) read with Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the video and presentation made at the Investors' Conference call/meet organized on Tuesday, May 23, 2023, post declaration of the Audited Financial Results (both Standalone and Consolidated) for the quarter and year ended March 31, 2023, which is uploaded in the website of our Company. Web link: https://www.wabag.com/wp-content/uploads/2023/05/Manufactured-Water.mp4 Kindly take the same on record. Thanking You, For VA TECH WABAG LIMITED Anup Kumar Samal Company Secretary & Compliance Officer Membership No. F4832 Encl : As stated above Sustainable solutions, for a better life ____________________________________________________________________________________________________________________ VA TECH WABAG LIMITED Board : +91 44 6123 2323 CIN: L45205TN1995PLC030231 Fax : +91 44 6123 2324 “WABAG HOUSE”, Email : wabag@wabag.in No.17, 200 Feet Thoraipakkam-Pallavaram Main Road, Web : www.wabag.com Sunnambu Kolathur, Chennai 600 117, India. Annual Investor Meet FY 23 23-May-2023 Cleaner Solutions for a Greener World 11 Cleaner Solutions for a Greener World Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by VA TECH WABAG 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,orany omission from,this Presentation is expresslyexcluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made fromtime to time by oron behalf of the company. 2 Cleaner Solutions for a Greener World A CENTURY OF WATER LEADERSHIP Senegal Sri Lanka Romania Russia Austria Bangladesh Tunisia Libya Singapore Algeria Nepal Malaysia Thailand KSA Oman Iran Namibia Macau Qatar Tanzania Egypt Nigeria 2024 WILL BE OUR Bahrain Turkey CENTENARY YEAR Philippines UAE 3 Cleaner Solutions for a Greener World Index 01 Wabag 02 Water Market & Green Energy 03 Long Term Strategy 04 Business Metrics 4 Cleaner Solutions for a Greener World Complete Water Treatment Solution Provider TECHNOLOGY FOCUS EP SPECIALIST 125+ IP Rights developed in-house for Core expertise focused on Engineering and water treatment technology solutions Procurement; Civil activities outsourced Global R&D centres – in Vienna and Focus on ‘Advanced technology, Value- Chennai Added & High Margin’ projects Pioneering, Reliable, Advanced, Enables to remain asset light Sustainable, Green and Proven Manufactured Water through marquee Technologies – promoting Circular Economy references in Recycle & Reuse, Desalination and Renewable energy thru Biogas GLOCAL DELIVERY EXPERIENCED LEADERSHIP 99 years of presence in over 25 countries; Professional management with avg. 30 yrs. strong execution track record of over 1,400 experience in the water sector Plants since 1995 Independent Board of Directors comprising World class technologies at competitive industry stalwarts with diverse experience price; Focused on projects funded by Central Promoter recognised among TOP 20 Govt., Multi Laterals & G2G Funding Transformative Leaders in Water sector, Ranked 3rd Globally by GWI for ensuring TOP 3 Global Water Leaders and Global water & sanitation for over 88 Mn people Asian of the year 2021-22 Ranked among Top 10 Global Desalination players by GWI 5 Cleaner Solutions for a Greener World Wabag is a leader in the Water space . . . With complete portfolio of Water Solutions . . . through various business/ delivery models with technological and operational expertise . . Recycle and Reuse Drinking Water Treatment Engineering, Procurement & Construction (EPC) O&M Design w M & a u r e r e t n Operation & Maintenance (O&M) t a e t t n r c i w l a i r a w e t s e m t a e Commissioning P L a i r f t e n C e y rs c h le ip Procurement m t a e r t w l a p i t s u a w r t n e t s a Design Build Operate (DBO) d t e n I Installation Construction Build Own Operate Transfer (BOOT) Sludge Desalination of sea treatment For & Brackish water Hybrid Annuity Model (HAM) Industries Municipalities WABAG brand is trusted and respected globally for its know-how and domain expertise built over 9 decades 6 Cleaner Solutions for a Greener World Globally Recognized Water Leader WABAG ranked 3rd Globally by Global Water WABAG recognized amongst the Global Top Intelligence (‘GWI’), United Kingdom for ensuring 10 desalination players. Ranked 6th globally safe and clean drinking water and healthy in the recently published annual survey for environment for over 88 million people the FY 2021-22 by GWI 01 02 03 04 05 06 07 08 09 10 7 Cleaner Solutions for a Greener World Leadership Team Rajiv Mittal (Promoter) Chairman & Managing Director Pankaj Malhan Deputy Managing S. Varadarajan (Promoter) Director & Group CEO Director & Chief Growth Officer Skandaprasad Seetharaman Chief Financial Officer Milin Mehta Independent Director Shailesh Kumar CEO – India Cluster Executive Vijaya Sampath Independent Director Board of Leadership Mahmut Gedek CEO – Europe Cluster Ranjit Singh Team Directors Independent Director Rajneesh Chopra Head –Global Business Development Amit Goela Non Independent, Non Executive Director 8 Cleaner Solutions for a Greener World The Water Market & Green Energy 9 Cleaner Solutions for a Greener World Overview of Global Water Market Massive outlay under Govt. Large scale Desalination projects schemes shall continue to drive announced in Saudi Arabia & opportunities in India Egypt over next 3 years Growing Semiconductor and Recycle & Reuse (R&R) is Green hydrogen market shall projected to be the key growth drive the demand for Industrial driver in India and globally projects Increased regulatory compliances Russia emerges as focus market with regard to discharge norms in for Oil & Gas projects, Sanctions Industrial Segment on country shall benefit 10 Cleaner Solutions for a Greener World Robust Investment Flow into the Sector ❑ Financial Institutions all across the globe looking at Water Sector with renewed interest ❑ Sustainable Development Goals (SDG) & Environment, Social, Governance (ESG) driven initiatives attracting interest from Sustainability & Green Funds ❑ Renowned Financial Institutions such as World Bank, ADB, JICA, EXIM, KfW offering Grants & Loans at minimal interest rates to boost Sustainable Infrastructure Bilateral, Multilateral, Sustainability & Green ❑ Notable allocation amounting to over $4 Billion under Active, Funding in Water Sector Proposed & Pipeline stage from various Financial Institutions globally. 11 Cleaner Solutions for a Greener World Market Drivers India Cluster MEA Cluster Europe Cluster •Massive outlay under Govt. Schemes •Govt. of Saudi Arabia allocated USD 28 •EU planning to overhaul contaminant like AMRUT 2.0, Jal Jeevan Mission, billion to support new waste water and nutrient removal standards in Namami Gange and Swachh Bharat projects. Europe in a revision to the Urban Mission 2.0 shall boost opportunities Waste Water Treatment Directive in the sector. •In view of vision 2030 Wastewater (UWWTD), with over USD 4 Billion a reuse is seeing significant interest in year of Capex & Opex by 2040. •5 state SRTW(Safe Reuse of Used Saudi Arabia, target for 35% of the Water) policy shall promote country’s used water to be recycled •Spanish Government assigned around opportunities for Recycle & Reuse. by 2030. 30% of the USD 24.13 billion water budget for plugging deficiencies in •Singapore, Philippines, Vietnam, •Egypt’s strategy for setting up large wastewater treatment, with irrigation Indonesia and Thailand has scale desalination plants in improvements, desalination, and announced some large scale projects conjunction with Renewable energy. reuse the other priority areas. in Wastewater Treatment and Planned 21 Projects for 3,300 MLD Desalination in EPC and BOOT models. with USD 3 Billion Investment. •Proposed Multilateral funding of over USD 1 Billion for Europe, majorly •Urban, Rural & Climate resilience focusing on Croatia, Italy, Poland and programs in Africa to drive Belgium. opportunities & funding for the sector. 12 Cleaner Solutions for a Greener World Green Energy Biogas: Market Development and Potential, Worldwide Green Hydrogen: Water Demand Major Driving Factors Biogas Market Size, 2021 to 2030 (USD Billion) Requires Ultra Hydrogen India Production Pure Water Cluster Target 50,000 Million 80 Litres 5 MMT /Year 70 60 50 40 Requires Ultra Hydrogen 30 MEA Pure Water Production 20 Cluster 110,000 Million Target 10 Litres 11 MMT /Year 0 1 2 3 4 5 6 7 8 9 0 2 2 2 2 2 2 2 2 2 3 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 Global Biogas Market Potential of USD 78.8 Billion by 2030 Hydrogen Requires Ultra Europe Production Pure Water Global Bio-methane Market Potential of USD 4 billion by 2031 Cluster Target 100,000 Million 10 MMT /Year Litres Green Energy (Bio-CNG) potential of STPs based on ASP and UASB technology is around (Installed capacity - 199,939 Tons per year) 13 Cleaner Solutions for a Greener World Aligning with Sustainable Development Goals Reshaping the Sector for a Greener Tomorrow Our Path To Net Waste To Resource Water Neutral Circular Economy Zero Energy Recovery Reducing GHG Effective usage of Generating green Generating valuable Contributing to emissions through our Recycled Water energy for 25 years resources from waste Circular Economy sustainable solutions WABAG’s Contribution to Water & Environment over last 2.5 decades Saving Reducing 1.2 2.5 > 40 27 26.5 million m3 million m3 MW million m3 million m3 > INR 6.5 Mn > 630 Tonnes Desalinated Water Recycled Water Green Energy Wastewater Clean Water Power Cost GHG Emission per day per day per day treated per day per day per day per day 14 Cleaner Solutions for a Greener World Group Strategy - Wriddhi (वृद्धि) 15 Cleaner Solutions for a Greener World Wriddhi (वृद्धि) Profitable Growth | Success | Market Leadership | Free Cash-flow | Quantum Leap | Improved Valuation EP, Industrial, Global Delivery Go to Market O&M Focus Partnerships International Centers Focusing on GLOCAL Deploy agile Go to Focus on Standalone Enables to remain an Essential to remain approach to execution Market teams across O&M along with advanced technology Asset Light through a hub and focus markets DBO/HAM player spoke model One City One Operator, Performance based Focus on Developing Diversification of risk → Collaboration and a game changer – projects are the future; jobs; Competitiveness Geographic, better Synergies between Replication to remain enhanced presence in to remain intact working capital Clusters the focus Capital projects Construction, O&M leadership → Strong Order book and The Wabag Developer & Tech Medium term target of Better cash-flows and Larger ticket size differentiator – partnerships → de- 20% revenues from better time control projects – Continued Passioneering ! risking & leadership O&M business Execution Efficiency essentials 16 Cleaner Solutions for a Greener World Business Metrics 17 Cleaner Solutions for a Greener World Business Highlights – FY 23 Wabag continues its “ Profitable Growth ” journey….. Consolidated Total Income of Rs. 30 Billion Consolidated EBITDA (before exceptional items) of Rs. 3.5 Billion YoY up by ~43% Consolidated PAT (before exceptional items) of Rs. 2.3 Billion; YoY up by ~74% Order book at over Rs. 132 Billion including Framework contracts, a growth of ~31% YoY; Provides Robust Revenue Visibility Cash and Working Capital focus remains intact….. Another consecutive year of positive operational cash flow generation of Rs. 850 Million on Consolidated basis and Free Cash Flow of Rs. 861 Million Group continues its turnaround from Net Debt to Net Cash of Rs. 1,007 Million; Significant reduction in Gross Debt YoY from Rs. 4,285 Million to Rs. 2,133 Million Net Working Capital remains in control at 78 days; 10% reduction YoY Credit Rating Upgrade to A1+ received during this financial year; Reaffirms strong business fundamentals 18 Cleaner Solutions for a Greener World Group continues of Net Cash Positive path… Third consecutive year of Group “NET CASH” turnaround 437 96 1,007 (519) (1,821) (2,916) (4,327) Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 In Rs. Millions 19 Cleaner Solutions for a Greener World Landmark Desalination Order – 400 MLD SWRO Perur Largest Desalination Order in the History of Wabag; JICA Funded Project Largest Desalination Plant in South East Asia Project makes Chennai the Desalination Capital of India; almost 750 MLD of Desalinated water to be produced. With the 400 MLD SWRO plant, Wabag will be responsible for about 70% of the water production through Desalination in Chennai. 20 Cleaner Solutions for a Greener World Major Order – 200 MLD STP Pagla, Bangladesh Breakthrough order from the new geography - Bangladesh Funded by World Bank & AIIB Bank under Dhaka Sanitation Improvement Project (DSIP) Won this contract in Public tender against strong international competition New anaerobic sludge treatment technology with Biogas utilization Project will generate Green Energy from Biogas which will be used in plant operations 21 Cleaner Solutions for a Greener World Key Performance Metrics – FY 23 EBITDA* RoCE PAT* WC 12.0% 18.5% 7.7% 78 Days Driven by EP, Driven by Asset Driven by debt Driven by International, Light Business control & efficiencies in Industrial & Model improving business Technology operating margins operations Projects * Before exceptional items 22 Cleaner Solutions for a Greener World Order Book Composition EPC O&M By Business Offering & Customer Segment By Geography Rs. Millions Total Rs. Millions Municipal Industrial Total 39% India 76,919 61% EPC 61,946 11,595 73,541 Rest of the World O&M 42,298 4,715 47,013 43,635 (RoW) Municipal Industrial Framework 11,638 Framework 11,638 14% Total 104,244 16,310 132,192 Total 132,192 86% 47.0 India RoW O&M 31.8 EPC 36% 73.5 57.9 64% FY 22 FY23 23 Cleaner Solutions for a Greener World Wabag’s focus on “Manufactured Water” Desalination, Protecting Recycle & Promoting Environment, Reuse, Circular Powering Industrial Economy Economy Water treatment 24 Cleaner Solutions for a Greener World Thank You Cleaner Solutions for a Greener World 2255 Cleaner Solutions for a Greener World