NITIN FIRE PROTECTION INDUSTRIES LIMITEDNITIN FIRE PROTECTION INDUSTRIES LIMITED

Corporate Presentation

MAY 2014

1

Disclaimer

This presentation is for information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and does not constitutean offer, solicitation or advertisement with respect to the purchase or sale of any security of Nitin Fire Protection Industries Limited {"Company") and no part of it shall form the basis ofor be relied upon in connection with any investment decision, any contract or commitment to purchase or subscribe for any securities whatsoever. This presentation may not becopied, distributed, redistributed or disseminated, directly or indirectly, in any manner. By reviewing this presentation, you are agreeing to be bound by the trailing restrictionsregarding the information disclosed in these materials.

Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and the Company shall notbe liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein.y g p y p

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information oropinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarilyindicative of future results.

This presentation is not a complete description of the Company. Certain statements in the presentation and, if applicable, the subsequent question and answer session and discussionsconcerning Company’s future growth prospects, are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materiallyfrom those in such forward looking statements. These risks and uncertainties include, but are not limited to, successfully implement our strategy, our growth and expansion,technological changes investment income cash flow projections our exposure to market risks as well as other risks Given these risks uncertainties and other factors viewers of thistechnological changes, investment income, cash flow projections, our exposure to market risks as well as other risks. Given these risks, uncertainties and other factors, viewers of thispresentation are cautioned not to place undue reliance on these forward‐looking statements. The Company disclaims any obligation to update these forward‐looking statements to reflectfuture events or developments.

Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosedin this presentation. Industry and market‐related information is obtained or derived from industry publications and has not been verified by us. Any opinion, estimate or projection hereinconstitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection.The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material informationconcerning the Company. The Company does not have any obligation to, and does not intend to, update or otherwise revise any statements reflecting circumstances arising after the dateof this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. The accuracy of this presentation is not guaranteed, itmay be incomplete or condensed and it may not contain all material information concerning the Company.

All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. The Companyaccepts no liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith.

Nothing in the presentation shall constitute and/or deem to constitute an offer or invitation to an offer, to be made to the Indian public or any section thereof, and this presentation and itscontents should not be construed to be an offer document or prospectus. This presentation has not been and will not be reviewed or approved by any statutory or regulatory authority inIndia or by any stock exchange in India. This presentation does not comply with the disclosure requirements prescribed by SEBI or any other applicable authority in relation to a public issuef i i h I di k hof securities on the Indian stock exchanges.

The Company’s equity shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or any state securities laws in the UnitedStates. Securities may not be offered or sold in the United States absent registration or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of theSecurities Act. No public offering of securities of the Company has been or will be made in the United States.

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WHO ARE WE ?

We at Nitin Fire Protection Industries Limited (NFPIL) areend‐to‐end Fire Protection and solutions provider,with an agenda to provide wide range of Fire Protection systems to protect and preventfrom Disaster of fire,having product portfolio with international approvals.

We not only supply our range of products, but customise the entire Fire Protection solutions to match the requirements of the customers, which encompasses,

Designing & Engineering SupplyInstallation  TestingCommissioning  andMaintenance

Present in the fire industry since 1984

Over 400 employees world wide from 10 Nationality

Company has been rated  as A‐ (A minus) for its credit facilities by CRISIL (as on July 17, 2013)

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A COMPLETE WORLD CLASS FIRE PROTECTION SOLUTIONS 

Comprehensive solutions provider with a wide range of products ranging from basic level fire extinguishers to sophisticated fire protection systems and gas based suppression systems for mission critical areas as well as services

DetectionSystems

� Manual / Automatic Fire /Flame / Smoke alarmsystems of conventional as well as Intelligent type

n

Turnkey Solutions

Systems

Gas Suppression

Systems

systems of conventional as well as Intelligent type

� Gas based systems used for protection of highvalue equipment and critical assets, server rooms, control rooms, data centres etc. usinghydrocarbon and inert gases

Pro

tect

ion Systems

Protection systems

hydrocarbon and inert gases

Hydrant / Sprinkler systems Deluge valve and spray nozzle Water & Foam Based Fire protection systems67.5%

Fir

e

Products� Fire detectors and control panels

� Portable fire extinguishers

� Water & foam monitors

� Accessories of Fire Fighting Systems28.7%

AMCServices

� After sales support & maintenance of fire protection systems

� Refilling of fire suppression agent2.4%

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We Provide Vertical Solutions

Fire Extinguishers

Foam agents &Foam agents & Hardware

Automatic S i klSprinklers

Fire Detection & Control

Fire Suppression 

Design Engineering Services 

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Corporate Structure 

( )NITIN FIRE PROTECTION INDUSTRIES  LIMITED (NFPIL)

Listed holding company in India

Turnkey Solutions Provider 

Nitin GlobalSingapore

Fire Protection products

Nitin VenturesUAE

Fire protection 

Eurotech Cylinders India

Trading of High Pressure Industrial

100% 100% 100%

Subsidiaries

productsdistribution in South‐east Asia

products distribution in Middle East and 

GCC

Pressure Industrial Seamless cylinder distribution in India

New Age UAE 

Turnkey fire protection solutions 

only in UAE 40% 11.11%

Firetec SystemsEurope

Fire Protectionproducts distributionin European regions

Associates Worthington Nitin 

CylindersIndia

Seamless cylinder manufacturing JV with Worthington Industries

NELP VIIndia 

Onshore Oil Block with GAIL/GSPC/ 

HPCL/BPCL

Started Operations in 2013

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Worthington Industries

Strong presence in India with an accelerating growth in Global Market

� Operating since 1984

� Amongst top fire protection players in India

India

Europe

Started Operations g p p p y

� Providing end-to-end solutions for fire protection &

safety

� Started Operations

in European region

in 2013 through

Firetec Systems

SingaporeUAE

Limited, UK

� Offices in Abu Dhabi, Dubai and Sharjah with

experience in installation in seven emirates

� LLC Company operating since 1976

� Providing end-to-end solutions for fire

� Distribution of fire protection products in South East Asia

o d g e d to e d so ut o s o e

protection & safety

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Highly experienced management with deep understanding of customer needs

Strong senior management team with deep industry experience

� Total experience: 29 years in fire industry� 8 years senior management role within European

Division of UTC Fire and Security� Final position with UTC European General Manager Global

FireSuppression (division revenue in excess of $400mn)

� Business owner for 17 years start up through to sale toMr. David AdkinsGlobal Sales Head

Strong senior management team… …with deep industry experience

Mr. Partho Roy

� Total experience: 28 years� Experience in the field of fire detection, fire 

extinguishing, gas detection and networking� Holds a Bachelor’s degree in Computer  

Science from University of Missouri, U.S.A.� Business owner for 17 years, start up through to sale to

Kidde plcGlobal Sales Head

� Total experience: 30 years� Out of which, spend 13 years as international sales manager 

for Apollo Fire Detectors� Post Graduate Certificate in Management from

Southampton University’s School of Management

Mr. Partho RoyCMO

� Total experience: 40 years� Associated with Nitin Fire for 13 years� In‐ charge of international approvals for 

various products and systems, technical support to sales, marketing & installation  Southampton University s School of Management

Mr. Kim WilliamsD&A Specialist, UAE

� Total experience: 35 years� Previously worked with UTC Fire and Security as its

managing director based in the UAE, responsible for salesinto Russia, Central Europe, Middle East and Central Asia

teams, etc� Has a Bachelor’s degree in Electrical 

Engineering

� Total experience: 42 years� Associated with Nitin Fire for 21 years� In charge of the technological development 

Mr. Pravin ShahHead Technical

Mr. John SellensSales & Marketing, MENA

� Total experience: 17 years� Handles every aspect of operation from Maintenance to 

Marketing

of products and technical negotiations with customers in respect of turnkey and general fire safety products

� Holds a Masters degree in arts

� Total experience: 48 years� Worked on various systems of Fire

Mr. Gopal Krishna ShahiGeneral Manager

� Completed Graduation from University of Maryland (USA) in Finance & Marketing in 1997 and Executive MBA from SP Jain (Dubai) in 2010

Mr. PooravBusiness Development Manager, UAE

Mr. Kulwant SobtiDGM ‐ UAE Operations

� Worked on various systems of Fire Supression & Detection including Mist systems in Dubai & Muscat 

� Certified Mechanical Engineer from Dubai & Ajman Civil Defence

� Holds a Bachelor in Electro ‐Mechanical

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Strong Track Record

Long and

ISO 9001:2000 company, successfully completed 30 years of operation in India

More than 5,500 direct installationS and more than 22,000 indirect installation done throughvarious contractors

Track record of executing a number of large‐scale fire protection systems installation projectssuccessfuloperating

history

Track record of executing a number of large scale fire protection systems installation projects

Focus on developing customized solutions to meet customer needs and strong after‐salessupport

Understand clients problem and helping them to provide quick, safest, environmental friendly,best quality and cost effective fire protection solutionsbest quality and cost effective fire protection solutions

Wide range of fire protection equipment and products

Design capability for providing fire protection solutions to simple as well as complex missioncritical assets

Skilled and trained engineers / manpower with continuous training to meet with evolvingtechnology

Environmentally clean ozone friendly gas suppression system using clean Inert Gases

Dedicated in‐house team to monitor development of latest range of products

Focus ontechnologyand productdevelopment Dedicated in‐house team to monitor development of latest range of productsp

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Diversified Clients in across the Sectors

Marquee clientbase

Intermediataries & Contractors

Few Projects Executed in UAE

JAFZA – Warehouse Madina MallJAFZA  Warehouse 

Ajman Free Zone Warehouses

Al Fola Mall

Mission Hospital

LULU Hyper Market

Madina Mall

Madina Police Station

UAE Model School

Ramee Hyper Market

AutozoneLULU Hyper Market 

Federal Food Warehouse

Bloom Academy

Director General, Civil Defence, 

F ji h

Autozone

DEWA Distribution Warehouse.

Mid Field Terminal Building ADNOC

Sharjah Military Hospital

k

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Fujirah

Shobha Sapphire

Dubai Medical College

Takreer

American School

Oil Exploration

● Entered into a production sharing contract forexploration and prospecting of a crude oil block inRajasthan (NELP VI)

● GAIL and GSPC are the main operators for the blockand HPCL, BPCL and Hal worthy are other consortium

b

Location Map

members.

● As per recent estimates this block has a potential of32.3 million barrel of prospective four wells of oil reserve (Source: GSPC DRHP)

● NFPIL has 11.11% share in a JV with GSPC, HPCL,● NFPIL has 11.11% share in a JV with GSPC, HPCL,BPCL, GAIL and other consortium partners, for oilexploration in Rajasthan State RJ 19

● Investment as on Dec 31, 2013 is apprx. Rs. 239 mn

● Currently under Approval by Director General ofHydrocarbons for Phase 2 exploration

Shareholding Structure

11

Capital  History 

• Listed during June 2007 on both the recognized stock exchanges in India

IPO

Bonus History Dividend History 

FY %

FY – 14* 10

FY – 13 10

Date Bonus Ratio

22‐09‐2011 5:2

FY  13 10

FY –12 20

FY – 11 50 Splits History  Old Value  New Value

Stock Splits 

FY –10 35

FY – 09 30

FY – 08 20Split Face Value 10 to Face Value 2

13‐08‐2010 10 2

12* PROPOSED

Financial Highlights ‐ Standalone

Balance Sheet Cashflow StatementBalance Sheet 

(Rs. in mn.)  FY‐11  FY‐12  FY‐13  FY‐14 

Net Worth 1,264  1,381  1,504  1,530 

Net Debt  433 1,651  1,677  2,216 

S f F d

Cashflow Statement 

(Rs. in mn.)  FY‐11  FY‐12  FY‐13 

Cash flow from Operating Activities  (314) (938) 332 

Sources of Funds 1,697  3,033  3,181  3,746 

Fixed Assets (incl. CWIP)  27  134 353  349 

Investments  638  843 592  591 

Net Working Capital

Cash flow from Investing Activities  379  (249) (37)

Cash flow from Financing Activities  (24) 1,244  112 

Key HighlightsIncome Statement 

Net Working Capital 1,032  2,056  2,236  2,806 

Application of Funds 1,697  3,033  3,181  3,746 

Net Increase / (decrease)  41  57  407 

The profit in FY14 has come down because of one‐timeexpense of loss on foreign currency transaction of Rs. 44.68mn and Provision of Doubtful Debts / Written off of Rs. 25.80mn)Sales grew from 350‐450 Cr INR in FY‐14 OVER FY‐13.N W th I l d P d Di id d f th

(Rs. in mn.)  FY‐11  FY‐12  FY‐13  FY‐14 

Revenue  1,477  1,635  3,521  4,554 

growth %  57.3% 10.70% 115.40% 29.35%

EBITDA  190  231  312  337 NewWorth Includes Proposed Dividend for the year .

margin %  12.90% 14.10% 8.90% 7.39%

PAT  237  101  175  110 

margin %  16.00% 6.20% 5.00% 2.41%

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* The profit arising on sale of subsidiary has been excluded from PAT of FY 11

Financial Highlights ‐ Consolidated

Balance Sheet C hfl St t tBalance Sheet 

(Rs. in mn.)  FY‐11  FY‐12  FY‐13  FY‐14 

Net Worth  2,321  2,657  3,175  3,711 

Net Debt  1,332  2,717  2,936  3,556 

Cashflow Statement 

(Rs. in mn.)  FY‐11  FY‐12  FY‐13 

Cash flow from Operating Activities  (132) (948) 402 

Sources of Funds  3,654  5,374  6,111  7,267 

Fixed Assets (incl. CWIP)  1,383  1,514  1,822  1,994 

Investments  607  663  360  14 

Net Working Capital  1,664  3,197  3,929  5,259 

Cash flow from Investing Activities  12  (264) (255)

Cash flow from Financing Activities  (17) 1,267  250 

The revenues have grown by 44 % during the period

Key HighlightsIncome Statement 

(Rs. in mn.) FY‐11 FY‐12 FY‐13 FY‐14

Application of Funds  3,654  5,374  6,111  7,267 Net Increase / (decrease)  (137) 55  397 

FY14 PAT includes one‐time expense of loss on foreigncurrency transaction of Rs. 44.81 mn and Provision ofDoubtful Debts / Written off of Rs. 25.85 mn)The total outstanding orders in hand are in excess of Rs. 375croreTh t d bt t it ti i 0 95

(Rs. in mn.)  FY 11  FY 12  FY 13  FY 14 

Revenue  4,382  5,360  7,047  10,161 

growth %  39.40% 22.30% 31.47% 44.19%

EBITDA  649  748  893  1,077 

i % 14 80% 14 00% 12 70% 10 60% The net debt to equity ratio is 0.95Net Profit Grew from 614 Million to 665 Million INR

margin %  14.80% 14.00% 12.70% 10.60%

PAT  579  470  614  665 

margin %  13.20% 8.80% 8.70% 6.55%

14

* The profit arising on sale of subsidiary has been excluded from PAT of FY 11

Key Milestones

� Acquisition of management control in New Age Co. LLc UAE.

� Listed once again under � Only

� 100 % Subsidiary incorporate

� Received � Successfully

� Acquisition 40% stake in New Age Co. LLC in Dubai

� Forbes Award –Listed on Forbes Asia for best under a billion for th

Forbes Asia for the year 2010.

� Divestment of cylinder manufacturing business through JV with Worthington

� Listed forthe 3rd consecutive year under Forbes Asia for the year 2011

Company to receive LPCB approval for Inert Gases

incorporated FiretecSystems Ltd in UK

� Only Indian Company to use Ozone friendly Fire Protection

� Received major orders from ONGC for replacement of Ozone depletion Fire Suppression systems at

� Received ISO 9001:2000

ylisted on BSE & NSEand expansion in UAE

Dubaithrough it 100% stake NV FZE

the year 2009

gIndustries Inc.

Protection Systems

ytheir offshore Platforms� Incorporated as

Nitin Industries

1984 1995 1998 2004 2007 2008 2009 2010 2011 2012 2013

15

Industry Dynamics

Global Fire & Security market is estimated tobe c.US$ 100bn, growing in excess of GDPand is expected to grow at CAGR of c.10%

This industry is currently lead by TYCO having

Key long term demand drivers

TechnologyDemand for innovation and new applications

Application and systems convergenceThis industry is currently lead by TYCO having12% of the market share

Other large players are UTC, Honeywell,Siemens in the space

Regulations

Mandatory government regulations

Stringent environmental standards

Growth market codes and standards proliferation

Highly fragmented market with top fiveplayers account for less than 20% share.

NFPIL currently enjoys 0.1% share of theGl b l Fi I d t ith US$ 110 i FY14

CustomersInterest in latest technology and increasing awareness

Increasingly price conscious

Increase in infrastructure investmentsGlobal Fire Industry with US$ 110 mn in FY14

There is a definite demand for FireProtection products worldwide with newerproducts application

InfrastructureCommercial and residential constructions 

The Innovation and Product Developmentare the critical aspects of success in theindustry

16Source: TYCO Annual Report 2012

VISION 2020

NFPIL is moving towards its vision to achieve 1% of the Global Fire Industry Business toachieve a goal of over US$ 1 billion in revenues

To achieve this we are looking at below mentioned routes:

Accelerate growth via entering into growing market;

Develop & Promote Technologically sound products;

Lookout for in organic opportunities in this space;Lookout for in‐organic opportunities in this space;

Introduce & penetrate the largest market for Fire protection, North America & CIS

countries;

Expansion in terms of manufacturing and R&D programmes;

Fully integrated service setup backed by experienced industry veterans;

Work towards setting up newer guidelines for effective Fire Safety solutions for the endg p g y

users.

17

Growth Strategy

Focus on Core Accelerate Organic Expansion

BusinessGrowth Expansion

1 2 3

Inorganic Opportunities

New Product Introduction

New Territories

18

Accelerate Organic Growth

L i ti t b f thLeverage existing customer base for growthwith newer range of products

Improve customer service through end‐to‐d l ti ff iend solution offerings

Differentiate offerings through innovation

E d tf li & d t ff iExpand portfolio & product offerings

Local Presence to drive growth within eachregion

Local market‐driven R&D supported by globaltechnology and resources

I ti i l l l d k tiInvesting in local sales and marketingcapabilities

19

Inorganic Opportunities

Currently operating into 4 countries with annual sales of US$ 130 million

Focus on M&A to drive higher growth, especially in North America & CIS, the largest market offire protection services

Disciplined bolt‐on acquisitions and divestment of non‐core businessesAcquired New Age Co., LLC during 2010

Exiting the Cylinder manufacturing business during 2010 by divesting majority stake

Recent Transactions in the Industry

Date Target Type Buyer SizeThe consolidation of activities throughdisciplined acquisitions is the core of the

Jul‐13 Angus Fire M&ALloyds Banking 

Group£62 million

May‐12FireproSystems

M&AAnchor Electricals (Panasonic Corp)

‐

p qindustry

The global giants have seen growththrough inorganic routes

Oct‐11Agnice Fire Protection

M&A United Technologies INR 350 Cr

Mar‐10

ZicomElectronic Security 

M&ASchneider Electric 

India Pvt LtdINR 225 Cr

through inorganic routes

20

Systems

Our Strengths Position Us to Win

Customer DemandIncreased demand for integrated fireprotection systemsGrowing niche product segment for

Competitive LandscapeFragmented marketIncreasing industry consolidation

specialised productsGrowth market codes and standardsproliferationImplementing fire codes and standards

Strengths & OpportunitiesTechnology leadershipAccelerated development and integrationof new technologies & service offeringsp g

Technology EvolutionIntegration of Fire and Gas SuppressionSystems

g gVertical‐market specific skills and solutionsAccelerate technology advancementsBroaden footprints

SystemsDemand for innovation and newapplicationsApplication and systems convergenceVertical specific technologies andVertical specific technologies andapplications

21

NOTES

22

NOTES

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THANK YOU

NITIN FIRE PROTECTION INDUSTRIES LIMITEDNITIN FIRE PROTECTION INDUSTRIES LIMITEDCorporate Headquarter: 

501, Delta, Technology Street, Hiranandani Gardens, Powai, Mumbai ‐ 400 076. Maharashtra, India.

Ph: +91 22 4045 7000 Fax: +91 22 2570 1110Ph: +91 22 4045 7000  Fax: +91 22 2570 1110Website : http://www.nitinfire.com  Email : nitinfire@vsnl.com

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