KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 1 20th August 2018

KIRLOSKAR PNEUMATIC COMPANY LIMITED

A Kirloskar Group Company

Kirloskar Pneumatic Company

Limited

Financial Analyst Meet

August 20, 2018

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 2 20th August 2018

KIRLOSKAR PNEUMATIC COMPANY LIMITED

A Kirloskar Group Company

Product

Brand

Product

Brand

Product

Brand

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 3 20th August 2018

Management Team

Mr. Rahul C. Kirloskar

Executive Chairman

Mr. Aditya Kowshik

Managing Director

Mr. M.P. Behere

V.P. ACR

Mr. D.S. Lokras

V.P. Process Gas

Mr. N. Bhargava

V.P. Air Comp.

Mr. Mahabaleshwarkar

V.P. Transmission

Mr. S. Grover

V.P. IBD

Mr. S.Padhee

V.P. HR.

Mr. S.S. Kolhatkar

V.P. Finance & CFO

Mr. Adiverekar

A.V.P. QA

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 4 20th August 2018

About KPCL • Multi Product and diversified technology company

• Compression segment

• Air Conditioning & Refrigeration, Gas and Air

• Transmission segment

• Traction Gears, Customized Gear Boxes

• FY’18 Revenue from Operations – Rs. 606 Crores

• Manufacturing facilities at Hadapsar (HO), Saswad and Nashik

• Branches – 8

• Dealers ~ 60

• International business • KDMCC, UAE

• KSEA, Thailand

• JIT(SA) PL, South Africa

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 5 20th August 2018

Air Conditioning

&

Refrigeration

Compression Segment

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 6 20th August 2018

Products

Projects

Post Sales

Refrigeration Compressors Compressor Packages Gas Compressors

Oil & Gas Marine

Chemical & Food

Service Lube Oil Spare Parts Training

Overview

6

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 7 20th August 2018

Repeat Customers New Customers

Customers

7

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 8 20th August 2018

Refrigeration Systems Refinery &

Petrochemicals

Chemical, Fertilizers &

Food Marine

Process Cooling With

Hydrocarbon

(-5ºC to -45ºC) Comply With

API Standards

•Up-to 5 MW Drive - Screw

Comp.

•Above 5 MW Drive -

Centrifugal Comp.

Chilled Brine Systems &

Compressor Packages

Using Ammonia & CFC

Free Refrigerants.

(-15ºC to -55ºC)

•Up-to 100 TR With Recip

Comp.

•100-800 TR With Screw

Comp.

Chilled Water, HVAC &

Refrigeration Packages

Using CFC Free

Refrigerants (+6ºC)

•Up-to 40 TR With Recip

Comp.

•Above 40 TR With Screw

Comp.

8

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 9 20th August 2018

Strategy

• Water cooled Refrigeration Compressors to Air Cooled

Refrigeration Compressors – redefine the market

• Digitization of Service and Spare Parts Operations

• Food & Pharma Sectors – Standardised screw

compressor packages.

9

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 10 20th August 2018

Refrigeration Business

• Only Manufacturer Of Air Cooled Ammonia Refrigeration Compressors

• In house Expertise In Design Of Complex Hydro Carbon Refrigeration

Packages

• Design Capability For Shock Resistant Refrigeration Packages Upto 270g

For Warships And Submarines

• Proven Track Record - Equal Or Better Than Any International Player For

Refrigeration Projects

• Largest Supplier Of Refrigeration Packages In Oil & Gas Sector –100%

Enquiry Receipt

• Efficient Project Management - >95% On Time Delivery,

‘Zero’ Short Supply, No Cost Overrun

10

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 11 20th August 2018

1. Applied Patent For Split Condenser – For Nuclear Submarines

2. Innovative Brine Chiller with 40% reduction in heat transfer area.

3. Complete range of Air Cooled Compressors – Single and Two Stage

4. HVAC System for Coast Guard Ships

5. Vapour Absorption Chillers

Innovations & New Products

11

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 12 20th August 2018

Process Gas Systems

Compression Segment

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 13 20th August 2018

Overview

Gas Pipeline

Transmission,

Gas Storage & withdrawal

Midstream

Downstream

Distribution

Solution For Gas lift

Gas Gathering,

Reinjection, CBM

API 11P

API 619 (oil fld-screw)

API 619 (oil free-screw)

API 617

API 11P

API 619 (oil fld-screw)

API 619 (oil free-screw)

API 617

Processes In Refinery

& Petrochemicals

API 618

API 619 (Oil fld-screw)

API 619 (oil free-screw)

API 617

CNG Packages

API 11P - CNG

Product Available

Product Not Available

Colour Code Upstream

13

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 14 20th August 2018

Key Customers & Consultants

Customer Added in FY’18 :

14

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 15 20th August 2018

Authorised Packagers of :

Howden Compressors UK.

Ariel USA. High Speed Reciprocating Gas Compression - API 11P

High Speed Screw Gas Compression - API 619

Partnerships – Refrigeration & Gas

15

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 16 20th August 2018

India Natural Gas Scenario

Energy Alternatives India (EAI)

16

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 17 20th August 2018

India Natural Gas Scenario

Production:

– Gross production of Natural Gas in FY’18 (till Nov 2017) – 21.93 BCM

– Increase in Gas production by 5.6% compared to same period PY

Increased opportunity in Upstream, Midstream & Distribution

Applications

Import:

– LNG import in FY’18 (till Nov 2017) –17.37 BCM

– Increase in Import by 3% compared to same period PY

– New LNG / Revamp of Existing Terminals Planned in FY’19

Increased opportunity in Boil Off Gas & MSO Applications

17

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 18 20th August 2018

India CNG Scenario

Total 240 Geographical Areas identified for Compressed Gas

Distribution in India.

Expected CNG stations – 3,600 by FY 2028

18

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 19 20th August 2018

New Business Avenue

Successful entry into Wet Lease Business for Natural

Gas Compression

Tie-ups with other Wet Lease Operators.

19

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 20 20th August 2018

Air Compressors

&

Systems

Compression Segment

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 21 20th August 2018

Strategy For Growth

Customer

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 22 20th August 2018

Product Development : Rotary

Air Flow and

Power

Simulation

shows

consumed

shaft power

for rotation

of screw

Air Flow

Simulation in

AOS Tank

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 23 20th August 2018

Industries served

Cement

Co-Gen

Oil & Gas

Pharma

Food

Chemical

PET

Fertilizer

Medical Textile

Sugar

Automobile

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 24 20th August 2018

1.Centrifugal Air Compressor

2.New Rotary Air Compressor

3.Customised Air Solutions

New Products

24

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 25 20th August 2018

Transmission Segment

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 26 20th August 2018

Railway Business Offering

Components • Traction Gears

and Pinions

Equipment

• Hydraulic Transmissions

• Axle Drives

TRANSMISSION

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 27 20th August 2018

Products

Gears & Pinions Industrial Gearbox

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 28 20th August 2018

• Maintain dominant market share ( 60%+ ) in

Railway Gear & Pinion business

• Transform TRM from a Component Manufacturer

to an Equipment Manufacturer

• Re-enter propulsion gearbox market of Indian

Navy

Strategy

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 29 20th August 2018

Industrial Gearbox Market

Standard,

855

Custom

built 869

Geared Motors,

700

Couplings, 400

Gearbox Market

Rs 2824 Cr

Customised < 1.4 m; 100

Customised > 1.4 m; 234

Large Planetary;

100

Small Planetary;

175

Hydro Turbine; 50

VRM; 60

High Speed > 20MW;

50

High Speed < 20MW;

120

Custom-built Gearbox Market

Rs 869 Cr

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 30 20th August 2018

Business Development Actions

Market Focused

Market Size

Rs. Cr.

High Speed < 20MW 100

Hydro-turbine 50

Large Planetary 100

Small Planetary 175

VRM 60

Customised > 1.4m 234

Customised < 1.4m 100

High Speed > 20MW 50

Total 869

• Approved by Siemens, Chola Turbo,

Kessels, IB Turbo and MAN Turbo. Avant

Garde has approved KPCL Facilities.

• Approved by BHEL for Gear Internals as

per API 613 for Boiler Feed Pumps.

• Approval from reputed sugar mills

• Consultant approvals – VSI, SITSON

• Other consultants’ (Mitcon & JPMA)

approval planned in FY’19

• Approved by OEMs (BFL, APE Power,

ANDRITZ & Flovel )

• Planned approval from Mechamidi in

FY’19.

• Approved by Consultant (Boom Systems)

• Other Consultants’ approval planned in

FY’19

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 31 20th August 2018

RoadRailer

New Business

31

ON ROAD ON RAIL

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 32 20th August 2018

Financial Performance

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 33 20th August 2018

Financial Performance - KPCL

441

509553

606

200

350

500

650

FY 2015 FY 2016 FY 2017 FY 2018

Rs C

r

SALES ( CAGR - 11% )

38

68 79

89.9

-

25

50

75

100

FY 2015 FY 2016 FY 2017 FY 2018

OP. EBITDA ( CAGR - 33% )

Rs. C

r.

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 34 20th August 2018

Financial Performance - KPCL

50

70

100

120

0

50

100

150

FY 2015 FY 2016 FY 2017 FY 2018

DIVIDEND %

%

19

49

61

73

0

20

40

60

80

FY 2015 FY 2016 FY 2017 FY 2018

OP. PBT

Rs. C

r.

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 35 20th August 2018

Financial Performance - KPCL

5 5

13

40

0

10

20

30

40

50

FY 2015 FY 2016 FY 2017 FY 2018

Rs C

r.

FIXED ASSETS ADDITIONS

127

170201 205

0

100

200

300

FY 2015 FY 2016 FY 2017 FY 2018

Rs C

r.

NET FREE CASH

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 36 20th August 2018

Financial Performance - KPCL

7.7%

29.4%

37.0%

48.6%

0%

10%

20%

30%

40%

50%

60%

FY 2015 FY 2016 FY 2017 FY 2018

%

OPERATING ROCE

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 37 20th August 2018

Financial Performance - KPCL

302245 229

520

0

200

400

600

FY 2015 FY 2016 FY 2017 FY 2018

Rs

Cr.

CLOSING ORDER BOARD

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 38 20th August 2018

Disclaimer

Statements in this presentation,

particularly those which relate to

management’s views and analysis,

describing the Company’s objectives,

projections, estimates and expectations

may constitute “forward looking

statements” within the meaning of

applicable laws and regulations. Actual

results might differ materially from those

either expressed or implied.

KPCL

This is a proprietary document of Kirloskar Pneumatic Co. Ltd. 39 20th August 2018

KIRLOSKAR PNEUMATIC COMPANY LIMITED

A Kirloskar Group Company

Thank you