Schneider Electric Infrastructure Limited Investor Presentation
SEIL - April, 2012 - Schneider Electric
SEIL - April, 2012 - Schneider Electric
- No tags were found...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong><br />
<strong>Limited</strong><br />
<strong>Investor</strong> <strong>Presentation</strong><br />
April 2012
Disclaimer<br />
● Forward-looking statements<br />
● This document contains forward-looking statements and information. These<br />
statements include financial forecasts and estimates as well as the assumptions on<br />
which they are based, statements related to projects, objectives and expectations<br />
concerning future operations, products and services or future performance.<br />
Although the management believes that these forward-looking statements are<br />
reasonable, Interested parties are hereby advised that these forward-looking<br />
statements are subject to numerous risks and uncertainties that are difficult to<br />
foresee and generally beyond <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> control.<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 2
<strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> : India<br />
The trusted Energy<br />
Manager for <strong>Infrastructure</strong><br />
Customers in India<br />
10645 MINR sales<br />
Sales 9 months to December<br />
2011<br />
1802<br />
People<br />
Country-wide coverage:<br />
5 AND 11<br />
Production<br />
facilities<br />
Systems<br />
Solution<br />
Centers<br />
AND<br />
24<br />
Authorised<br />
Service<br />
Centres<br />
Infra. offer<br />
Best-in-class Solutions, Products and Services<br />
• Transformers<br />
• Products and Equipments<br />
• Substation Automation, Network Automation , SMART<br />
Grid , IEDs<br />
• Turnkey <strong>Infrastructure</strong> Solutions with cross selling of<br />
all SE products<br />
Dedicated solutions for:<br />
•Utilities<br />
•Oil & Gas<br />
•Electro Intensive Industries<br />
Committed<br />
to our<br />
customers for:<br />
Quality<br />
Competitiveness<br />
On-time delivery<br />
Market Leadership In India For Products & Solutions<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 3
<strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong><br />
●<br />
●<br />
SEIL is India’s market leader in the efficiency improvement domain of<br />
Energy <strong>Infrastructure</strong> sector<br />
● SEIL positioning/offering is as follows :<br />
●<br />
●<br />
●<br />
●<br />
●<br />
●<br />
Market Leadership in AC Evacuation Substation for Solar . 310 MW<br />
under commissioning<br />
Automation leadership for M&M, Oil & Gas and Renewable<br />
Leadership in Solar Segment for Distribution Transformers<br />
Transformers & Substations offerings up to 220 Kv<br />
Primary & Secondary Distribution Activity<br />
Smart Grid, Smart City offerings for efficient utilisation of<br />
<strong>Infrastructure</strong>.<br />
SEIL positioning in this context is to act on the pain points of the<br />
Power sector, i.e. revenue realisation and distribution losses, by<br />
providing smart products and solutions that can track energy flows<br />
and give customers visibility on what energy is actually being<br />
distributed<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 4
India Energy <strong>Infrastructure</strong> Market (1/3)<br />
Key Market Drivers<br />
Energy Demand<br />
R-APDRP<br />
Renewable Energy<br />
• India’s energy demand to grow fastest at 3.1% CAGR (2009-35)<br />
accounting for 9% of World Energy Demand investing 150<br />
Trillion$ by 2035 in Power Sector<br />
• India’s <strong>Electric</strong>ity demand to grow fastest in the world @ 5.1%<br />
CAGR till 2035 accounting for 11% of world’s total capacity<br />
addition with 1 Trillion$ investment in New power plants<br />
• Total Program size of 70,000 cr to reduce AT&C losses from<br />
present 33% to under 15%<br />
• Need for Efficient grid , Demand Side Management , Asset<br />
management , Quality assurance Services<br />
• Capacity addition of 22GW from 2011 – 2017<br />
• Utilities to purchase 6% of Power from Renewable sources<br />
Power Generation<br />
Rural Electrification<br />
Aging <strong>Infrastructure</strong><br />
Process Industries<br />
Oil & Gas<br />
Railways <strong>Infrastructure</strong><br />
Smart Cities / Smart Grid<br />
Distribution Grid<br />
IPPs<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 5
India Energy <strong>Infrastructure</strong> Market (2/3)<br />
Roadblocks<br />
Governance &<br />
Policy Issues<br />
• Slow decision making process in Utilities<br />
• FDI/FIIs cautious on investing in Indian economy<br />
Environmental &<br />
Supply Chain issues<br />
• Land availability issues impacts Projects Implementation<br />
• Coal shortage impacting power generation addition<br />
Economy Issues<br />
• High Interest rates<br />
• Increasing Financial burden on Indian Utilities<br />
• Lack of finance available to Promoters<br />
Short term roadblocks but Long terms Demand<br />
drivers & sound Economic fundamentals intact<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 6
India Energy <strong>Infrastructure</strong> Market (3/3)<br />
Competition Outlook<br />
European MNCs<br />
• Players like ABB & Siemens with Global technologies,<br />
references & footprints<br />
Indian MNCs<br />
• Indian MNCs like Crompton Greaves , Larsen & Toubro , BHEL<br />
operating in domestic & overseas markets utilizing local setups<br />
Domestic Indian Players<br />
• Local Indian Players across select product lines and segments :<br />
EMCO , Voltamp , Vijai <strong>Electric</strong>als , Bharat Bijlee, TRIL , Easun<br />
Reyrolle, etc<br />
Pricing Outlook<br />
• Prices almost bottomed out with no further scope for price fall<br />
• Leading players have become conscious on price front which should lead to improvement in<br />
market prices<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 7
<strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> Ltd.<br />
Energy <strong>Infrastructure</strong> Solution Specialist<br />
Distribution Specialist<br />
Complete Energy Efficient Solutions<br />
Automation Solutions for Smartgrids<br />
Expertise in Renewable Energy Solutions<br />
<strong>Schneider</strong> – Telvent Smartcity Solutions<br />
Strong references in Complex Process Industries<br />
Advanced Services and large Installed Base<br />
Strong references in Complex Process Industries<br />
Leaders in Distribution with highest share<br />
Complete Distribution Products & Solutions<br />
Localized Manufacturing facilities<br />
Inhouse Research & Development<br />
Software Solutions for Grid Reliability & Efficiency<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 8
All over the world, electricity networks<br />
are becoming more complex, less stable!<br />
To continue to efficiently balance supply & demand, the grid needs to become smarter<br />
drivers<br />
accelerators<br />
Growing electricity demand<br />
Technology availability<br />
Need to reduce CO 2 emissions<br />
Active government & regulators<br />
Constraints on existing networks<br />
Active end-users<br />
making the Smart Grid happen<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 9
The smart grid is changing all stages of the<br />
electrical value chain<br />
1<br />
Renewable Energies<br />
Decentralized and irregular<br />
Centralised Generation<br />
2<br />
Smart & flexible<br />
transmission<br />
network<br />
Renewable<br />
On-site<br />
Storage<br />
3 Distribution and consumption:<br />
energy efficient, communicating,<br />
electricity intensive<br />
Commercial<br />
Backup<br />
Power<br />
Residential<br />
Industry<br />
Transport<br />
Transmission<br />
Distribution<br />
Consumers<br />
1<br />
Renewable Energies<br />
Decentralized and irregular<br />
4<br />
Communication and software at all levels<br />
“Smart Grid”<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 10
Hence the grid gets smarter everywhere<br />
Communication and software at all levels<br />
Centralised Generation<br />
4<br />
Utility network<br />
Consumers<br />
Transmission<br />
Distribution<br />
3<br />
Consumers<br />
Active<br />
Residential<br />
Consumers<br />
Active<br />
Industry<br />
Buildings<br />
Data Centres<br />
3<br />
<strong>Electric</strong> Vehicles<br />
& Energy Storage<br />
1<br />
2<br />
<strong>Infrastructure</strong><br />
1<br />
Renewable Energy Plants<br />
Active Energy Efficiency:<br />
Energy visibility & Means to act<br />
Distributed Generation<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 11
<strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> has a key<br />
role to play in the smart grid<br />
SEIL<br />
Distributed Generation<br />
2<br />
Centralised Generation<br />
5<br />
SEIL<br />
3<br />
Renewable<br />
On-site<br />
Storage<br />
Backup<br />
Power<br />
• Carbon trading<br />
• Energy efficiency<br />
• Micro network management<br />
Residential<br />
Commercial<br />
Industrial<br />
SEIL<br />
Transport<br />
Renewable Energy Generation<br />
1<br />
Intelligent Transmission<br />
Intelligent Distribution<br />
4<br />
Intelligent<br />
Metering<br />
& Demand<br />
Response<br />
Active Consumers<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 12
Integration of smart devices and software to<br />
drive efficiency of mission-critical<br />
infrastructures<br />
Communication and<br />
software at all levels<br />
Efficient<br />
home<br />
Flexible<br />
Distribution<br />
Demand<br />
Response<br />
Residential<br />
Industry & OEMs<br />
Non-res buildings<br />
Efficient<br />
Enterprise<br />
Renewables<br />
integration<br />
& connection<br />
Utilities<br />
Data Centres<br />
<strong>Infrastructure</strong><br />
Efficient infrastructure<br />
(O&G, Transport, Water)<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 13
Appendix<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 14
Healthy Order Intake<br />
In MINR<br />
+14 %<br />
4,000<br />
3,938<br />
3,464<br />
3,950<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
Q1 Q2 Q3<br />
Strong order intake performance despite difficult market condition<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 15
Growing Sales<br />
In MINR<br />
5,000<br />
4,000<br />
3,000<br />
3,445<br />
3,028<br />
4,068<br />
+34 %<br />
2,000<br />
1,000<br />
0<br />
Q1 Q2 Q3<br />
Strong sales performance<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 16
Rising Profit After Tax<br />
In MINR<br />
200<br />
+158 %<br />
181<br />
100<br />
82<br />
70<br />
0<br />
Q1 Q2 Q3<br />
Growth in Sales lead to strong profit<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 17
Key data for Q3 FY 2012<br />
(MINR)<br />
Particulars Q2 Q3<br />
% change<br />
in Q3<br />
Sales revenue 3,028 4,068 34%<br />
Operating Income 135 292 116%<br />
As % of sales 4.5% 7.2%<br />
Profit After Tax 70 181 159%<br />
As % of sales 2.3% 4.4%<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 18
Q3 and YTD Results<br />
Particulars<br />
Apr-Dec. 2011 Oct-Dec. 2011<br />
MINR % MINR %<br />
Sales 10,541 4,068<br />
Other income 105 1.0% 26 0.6%<br />
10,645 4,094<br />
Material costs 7,528 71.4% 2,844 69.9%<br />
Employee costs 913 8.7% 336 8.3%<br />
Depreciation 163 1.5% 59 1.4%<br />
Other expenses 1,458 13.8% 564 13.9%<br />
Operating profit 583 5.5% 292 7.2%<br />
Interest (90) (25)<br />
Profit before tax 493 266<br />
Tax expense (160) (85)<br />
Profit after tax 333 181<br />
Q3 & 9 month FY 2012 - <strong>Schneider</strong> <strong>Electric</strong> <strong>Infrastructure</strong> <strong>Limited</strong> Results <strong>Investor</strong> <strong>Presentation</strong> 19
Change language