Corporate Presentation

KEC International Limited

May 2009

Group Profile

8 Business Sectors, 20+ companies, 40,000+ employees, 4,00,000 + shareholders

KEC International RPG Cables

Harrisons Malayalam RPG Life Sciences Raychem RPG

Specialty S i lt 5%

Transmission 25%

Power 22%

CESC Noida Power Co. N id P C Integrated Coal Mining

Phillips Carbon Black

Carbon Black 9%

Top Line Breakup

Retail 11%

IT 6%

Zensar Technologies

Ceat Phillips Carbon Black Ceat Kelani, Sri Lanka

Tyres 21%

Entertainment 1%

Listed Unlisted

Saregama Saregama Plc, UK RPG Global Music

Spencer's Retail Music World Books and Beyond RPG Cellucom Spencer`s T S ` Travel l

Financial Snapshot 2008-09

Rs. Million
Revenues (FY`08) KEC International RPG Cables C bl CESC CEAT Phillips Carbon Black Harrisons Malayalam Zensar Technologies RPG Life Sciences Saregama India 28,140 3,130 3 130 27,750 23,530 10,390 10 390 2,017 7,829 1,277 1 277 1,370 EBIDTA (FY`08) 3,550 160 6,770 1,850 1,460 1 460 206 1,047 256 145 Net Profit Market Cap Promoter Institutional (FY`08) 31.03.2008 Holding Holding 1,720 (70) 3,540 1,480 890 62 645 60 77 32,530 1,280 1 280 51,470 3,730 4,410 4 410 1,170 2,600 1,700 1 700 1,680 42% 34% 52% 43% 50% 50% 52% 51% 51% 43% 9% 37% 36% 19% 11% 24% 16% 34%

Company Profile

Kamani Engg. Corp. established p for manufacture, enamelling and trading of Hollowware 1945

Railway Electrification Dept set up. First First Prime Indian company to Minister Pandit Second Jawaharlal Nehru get an order of Rly. Manufacturing Elect. of S.E. Rly. Plant in Jaipur visits Kurla Plant Zone 1959 1966 1961

MILESTONES
Recognized as Export house by Government 1969 Taken over by RPG Group 1982

1960 1950 First International Fabrication Plant order received started in Bombay from New Zealand in collaboration with Ms R Foures, France for supply to Bhakra Nangal Dam Project & Transmission projects Name changed to KEC International Limited 1984

1968 Full turnkey project awarded to design, manufacture, supply and erect transmission lines in Sudan

1975 First 400 KV line in India successfully completed

Third Thi d Manufacturing Plant in Nagpur 1996

Turnaround of Company begins 2001

Turnover crosses Rs. 2000 crores & Net Profit crosses Rs 100 crores 2006

Turnover Rs. 2814 crores Net Profit Rs 172 crores 2008

1983 1987 Tower testing Turnover crosses station at Vashi Rs 100 crores largest in the country & third of its kind in the world i ld inaugurated d

1999 Turnover crosses Rs 1000 crores

2004 Hive off of Investment division

2007 Merger of RPG Transmission Ltd. & NITEL . Telecom business started.

KEC International Limited

Established in 1945 , taken over by RPG Group in 1982 Leading Transmission line EPC Company in the world Global footprint with client base spread over 40 countries Currently e ec ting C rrentl executing projects in over 20 countries o er co ntries Strong presence in India, South Asia, Middle East, Africa & Central Asia Well balanced and diversified Order book Strong Manufacturing Capacity Listed on the BSE and NSE 200809
Sales: Rs. 34.27 bn PAT: Rs. 1.16 bn

Diversified Business Segments

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Vision

To be a global leader in Power Transmission EPC business and g p y a significant player in other related businesses, providing superior value to all stakeholders.

Business
Power Transmission
Turnkey Transmission Lines upto 1200 kV Tower Testing upto 1200 kV

Telecom
Telecom Towers SCADA OPGW Network Hotline Stringing

Distribution & Design

Substation Distribution Design services Balance of plant

Railways
Current Areas Future Plans Railway electrification Track Laying Signaling

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 12 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 31 32. 33. 34. 35. 36. 37. 37 38. 39. 40. 41. 42.

Afghanistan Algeria Argentina Australia Bangladesh Brazil Canada Egypt Ethiopia Ghana India Indonesia Iran Iraq Jordan Kenya Kazakhstan Kuwait Laos Lebanon Libya Malaysia Mali Mozambique Namibia Nepal New Zealand Nigeria Oman Philippines Saudi A bi S di Arabia South Africa Sri lanka Sudan Syria Tajikistan Thailand Tunisia UAE USA Vietnam Zambia

Geographical Expanse

Current Projects Completed Projects

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Current Projects
India Bangladesh Oman UAE Saudi Arabia Tajikistan Afghanistan Kazakhstan Australia Tunisia Mozambique
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Libya y Nigeria Algeria Kenya Ghana Ethiopia Mali Egypt Namibia South Africa

Business Process
Tenders Surveying Bidding Biddi Payment Award Of Contract Advance for mobilisation Profiling Design Detail Drawings D a ings FAC TOC Energization Construction Supply of Bought-Outs Shipment p Manufacturing Testing Prototype P otot pe
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Manufacturing Capabilities
Manufacturing plants at gp Jabalpur, Jaipur and Nagpur for transmission & telecom towers ISO 9001 | ISO 14001 | OHSAS 18001 certified to give world class gq y manufacturing quality Total Manufacturing Capacity of 211,000 MT (151,000 MT Owned + 60,000 MT Contracted) ) Experience of supplying transmission line towers to developed markets like USA & Canada

Nagpur Manufacturing facility

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Tower Design & Testing Capabilities

Three tower testing stations g Jabalpur, Jaipur & Vashi Capable of testing towers upto 1,200 Kv Design facilities equipped with latest softwares like BOCAD, PLS Tower, PLS CAD, Google Earth Fully equipped to provide computerised engineering y solutions, 3D analysis and design for optimising steel usage Providing tower testing services t overseas customers i to t Over 2214 tower tests till date

Plotting the transmission line using Google Earth g

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Project Management Capabilities

Team of highly experienced project managers and engineers Successfully executed projects in diverse terrains

Deserts: UAE Al i E D UAE, Algeria, Egypt, I di S di A bi (40) India, Saudi Arabia Mountains: India, Lebanon, Malaysia, Mozambique Frosty Conditions: Kashmir, Afghanistan, Kazakhstan (40) Rivers: Brahmaputra, Nile, Ganges, Rihand Challenging locations: Afghanistan, Iraq

Currently executing more than 100 projects Possess 69 strong fleet of TSE equipments

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Factors Contributing to Our Global Success

Excellent vendor relationships & Volumes based Procurements Strong Prequalification Status

Six Decades of Experience working in all types of terrains

Advantage KEC

State of Art designing capabilities

Dedicated skilled work force with cross country project execution capability Diversified Portfolio: Transmission, Distribution Transmission Distribution, Telecom & Railways

Large capacity for Tower manufacturing & supply with ISO 9001 | ISO 14001 | OHSAS 18001

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Industry Update

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Opportunities India
Power Requirements & Plans in India are very well documented

11th Five Year Plan

Total planned capacity addition 78577 MW Total plan outlay for Transmission Rs. 1400 billion [Central Rs 750 bn States Rs 650 bn] bn, Rs.

RGGVY: Power for All by 2012

First Phase: Electrification of villages: Outlay Rs. 240 bn by 2009 Second Phase: Electrification of all rural households: Outlay Rs.160 bn by 2012 y

RGGVY: Rajiv Gandhi Grameen Vidhyootikaran Yojana

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Opportunities India

PGCIL

Tenders to be floated for about Rs. 50 billion p.a. in the 11th Five Year Plan

State Utilities

Coming up with investments in 400 Kv Transmission lines

Private Players

Ultra Mega Power Projects g j (UMPPs) awarded by the Ministry of Power to private players BOO transmission projects to contribute significantly
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Opportunities South Asia

Nepal

Opportunity in Transmission, Distribution & Hydro Projects

Bangladesh

Mid size Small projects being floated

Sri Lanka

Scouting for more projects after successful completion of the last project

SAARC Grid

Grid being proposed between the SAARC Countries (Nepal, India, Bhutan, Bangladesh, Sri Lanka, Pakistan & Maldives)

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Opportunities International
North America USD 66 5 billion 66.5

T&D investment over next 5 years*

Other Europe USD 88 billion Middle East USD 14.5 billion Central Asia Russia USD 22.5 billion Baltic Ring USD 2.1 billion Others USD 23 billion

Eastern Europe USD 19 billion China USD 76 billion West Africa USD 1.2 billion South America** America USD 22 billion **Supplies & Engg Services Southern Africa USD 5.8 billion East Africa USD 716 million

South Asia USD 26.4 billion

South East Asia USD 16 billion North Africa USD 5.4 billion

* Includes all T&D capex, such as Grid Automation, IT Systems, Equipment, etc.

ANZ USD 8 6 billi 8.6 billion Source: ABS Energy research, Accenture research

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Market Players
Middle East
NCC, ETA, Gulfar, Hidada, Al Babtein, Zamil MEEDCO

East Europe
Energoinvest , ABB, SAG, Inabensa, Cobra, I l C b Isolux, Elecnor, Electromontaz, Belfour Betty

Asia Pacific
Hyundai Harbin Power, HG Power, Power Hyosung Power, Power Sumitomo, JPPC, Fujikura, Xian

Turkey
Emtamitas, , Sa-Ra, STFA

India Africa
, , Pivot Kahrif, Karakib Transdeco, Transel, Hidelco, Elject, Pivot, Energo Nigeria

KEC, Kalpataru, Jyoti, L&T, Gammon

Tata projects, Isolux, Inabensa Cobra, I Comm, Aster, EMCO, Bajaj Deepak Cables, EMC , Best & Crompton

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Opportunities Telecom
Demand for Telecom Towers To meet teledensity of 32.74% (from 15.6% now) in 2010 and improved coverage in rural areas Additional 150 000 towers needed in next 3 years (current 150,000 base 1,20,000 towers) to meet the capacity & coverage requirements Large BSNL tender for setting up telecom infrastructure arge SN Tower Sharing: a key growth driver International Opportunities like Africa, SE Asia O Opportunities on BOO b i t iti basis With Private operators 2nd Phase of USO fund projects for 11000 towers coming up Opportunities emerging in SCADA
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Opportunities Railways

11th Plan

Total outlay for Railways (excl. DFC) is Rs 2300 bn Projects worth about Rs 250 bn expected to be executed j p Large sized (Rs 1.5 bn 2 bn) projects

New line laying projects Composite in nature

Dedicated freight corridors (DFC)

East Corridor Ludhiana(Punjab)to Sonnagar(Bihar) E t C id : L dhi (P j b)t S (Bih ) West Corridor : JN Port Mumbai to Tughlakabad Delhi Project tenders are expected to be floated by 2009 end j p y Total Outlay Rs 280 bn
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Opportunities

Strong Order Book with well balanced geographical and business spread PowerGrid spending on track Opportunities in countries where we are not yet present h Lower commodity prices Depreciated Rupee Reduced threat from marginal players Likelihood of increased government spending in infrastructure projects i f j Better availability of man power

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Challenges

Turmoil in World Economy Delay in Government spending on Power Volatile Commodity prices (steel, zinc, aluminum, cement) Volatile US dollar Over Capacities & Competition from New Players Liquidity constraints Fund Shortage likely to impact fresh investments by private sector Availability of adequate and quality manpower to cater to growth in business

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Performance Update

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Last 5 Years

Rs. Million
Net Sales EBITDA EBITDA % Depreciation Interest PAT PAT % 200405 12,366 1,259 10.18 101 510 393 3.18 3 18 200506 17,277 1,627 9.42 269 593 493 2.85 2 85 200607 20,413 2,525 12.37 334 593 1,046 5.12 5 12 200708 28,144 3,546 12.60 251 677 1,722 6.12 6 12 200809 34,274 3,006 8.77 228 1,000 1,163 3.39 3 39

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Q4 FY 2009 update
Rs. Million
Net Sales Adj. EBIDTA [bfr Forex Loss/(Gain)] Adj. EBIDTA % EBITDA EBITDA % Depreciation Interest PAT PAT % Q4 FY09 11,345.8 1,428.5 12.59% 1,100.9 9.70% 78.8 289.5 480.2 4.23% Q4 FY08 10,310.3 1,243.5 12.06% 1,135.6 11.01% 48.5 179.2 606.6 5.88% FY09 34,273.9 3,943.0 11.50% 3,005.7 8.77% 227.5 999.8 1,162.9 3.39% FY08 28,144.8 3,422.5 12.16% 3,545.7 12.60% 250.7 676.5 1,721.6 6.12%

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FY 2009 Update
Rs. Million
Net Sales Adj. Adj EBIDTA [bf F [bfr Forex Loss/(Gain)] Adj. EBIDTA % EBITDA EBITDA % Depreciation Interest PAT PAT % Q1 FY09 6,000.5 807.7 13.46% 615.0 10.25% 10 25% 45.7 180.3 255.0 4.25% Q2 FY09 8,064.5 809.8 10.04% 562.0 6.97% 6 97% 55.2 232.8 178.0 2.21% Q3 FY09 8,863.1 897.0 10.12% 727.8 8.21% 8 21% 47.8 297.2 249.7 2.82% Q4 FY09 11,345.8 1,428.5 12.59% 1,100.9 9.70% 9 70% 78.8 289.5 480.2 4.23% FY 200809 34,273.9 3,943.0 11.50% 3,005.7 8.77% 8 77% 227.5 999.8 1,162.9 3.39%

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Business Update

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Order Book
As on 31st March 2009 Well Balanced
Australiasia 1% Central Asia 14% Africa 20% Middle East 15%

24% YOY Growth

South Asia 50%

Rs. Million
Transmission T i i Distribution Railways Telecom TOTAL South Asia 18,290 18 290 7,130 330 130 25,880 International 21,070 21 070 4,680 25,750 Total 39,360 39 360 11,810 330 130 51,630
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Growth Plans
Consolidate C lid Transmission Distribution Telecom Substation Railways Transmission Telecom
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EPC

Grow Enter BOO

Asset Ownership

Transmission

Telecom

Distribution & Substation

Railways

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400 KV D/c transmission line in Arabian Gulf on island platforms

400 KV D/C transmission line in UAE near airport landing area

Indias First 800 KV Tower under test at Vashi testing station

400 KV D/C hybrid tower in Abu Dhabi

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500 KV S/C guide suspension tower in Kazakhstan

400 KV D/C transmission line across Brahmaputra River

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Mickey Mouse Tower in USA

Thank You