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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
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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%
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* 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
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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.
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Growth Strategy
Focus on Core Accelerate Organic Expansion
BusinessGrowth Expansion
1 2 3
Inorganic Opportunities
New Product Introduction
New Territories
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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
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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
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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
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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 : [email protected]
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