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WaterandWastewaterManagement(WWWM) India

July2013

ExecutiveSummary
Market
IndianwaterandwastewatermanagementmarketiscurrentlyvaluedatINRxbn ItisexpectedtogrowwithaCAGRofy%till20 Manysmallplayersareenteringthemarket WWWtreatmentdemandarisesprimarilyfromthreemajorsectors:Agricultural,industrialanddomestic Industrialwatertreatmentisexpectedtodrivethismarketinthefuture

Drivers

Challenges
PoorInfrastructure WaterPricingMechanism UnaccountedforWater

Drivers& Challenges

RisingPopulationandUrbanization RapidIndustrialization ChronicGroundWaterContamination FluctuationsinGroundWaterLevel OperationalAdvantagesinIndia RequirementforEfficientGovernanceofWater FlowofAuthority yofWaterInstitutionsinIndia IncentiveStructure PolicyMeasuresbyGovernmentofIndia DIWALIConcept EntryofForeignPlayers PopularityofPPPModel MajorPlayers PlayerA PlayerD PlayerB PlayerE

Government Bodiesand Initiatives Recent D l Developments t Competitive Landscape

InstitutionalFrameworkinUrbanWaterSupply Zth FiveYearPlanInvestments IncreasingGovernmentThrust JawaharlalNehruNationalUrbanRenewalMission

PlayerC PlayerF

WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

MacroeconomicIndicators IndiasWaterSituation Introduction d i SectoralDemandforWater MarketOverview WastewaterTreatmentTechniques Drivers&Challenges GovernmentBodiesandInitiatives RecentDevelopments p CompetitiveLandscape MarketEntry Appendix
WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

EconomicIndicators(1/3)
GrossFiscalDeficit:Monthly
INRbn 600 500 400 300 200 100 0

SAMPLE
x5 x3 x6 x4 Month Month Month Month

x2 x1 Month Month

Exchange g Rate:Monthly y
USD/INR
55.0 54.5 54.0 53.5 Month20

x1

x2 x3 x4 x5 x6

Month20

Month20

Month20

Month20

Month20 4

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Differentwaterqualitystandardsarelaidoutbythe RegulatoryAuthoritiesinIndia
IndianWaterQualityStandards
Classof water
X1

DesignatedBestUse
Segments

SAMPLE
Criteria/Specifications
Point1 Point2 Point3 Point4 Point1 Point2 Point3 Point4 Point1 Point2 Point3 Point4 Point1 Point2 Point3 Point1 Point2 Point3 Point4 Point1

X2

Segments

X3

Segments

X4

Segments

X5

Segments

BelowX6

Segments

WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

WWWMgoods&servicesfacilitatestheprocessofremoval, treatmentandreuse/disposalofwastewater
WaterandWastewaterManagement Introduction(2/2)
WastewaterGoodsandServices WastewaterTreatmentProcedures

Point1 Point2 Point3 Point4 Point5

X1 X2 X3 X4 X5

Y1 Y2 Y3 Y4

Z1 Z2 Z3 Z4

Point1 Point2 Point3 Point4 Point5 Point6 Point7

X6 X7

Point1

WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

Agriculturalsectoristhelargestconsumerofwaterinthe formofirrigation
CurrentWaterUsagePatterninIndia:MarketForcesatWork
KeyMarketBoosters SegmentA
Point1 Point2 Point3 Point1 Point1 Point2

KeyIssues
Point1 Point2

SegmentB SegmentC

Point1 Point1

WaterConsumptionLevelsinVariousCountries
z1 y1 x1 A B y2 x2 z2 SegmentA SegmentB SegmentC

SustainableWaterConsumption StepsRequired
Point1 Point2 Point3 Point4

WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

Rapidurbanizationandindustrializationisexpectedtospurthe IndianWWWMmarket
MarketSize WWWM(ValueWise)
INRbn Z% x1 x2 x3 x4 x5 x6

0 20 20e 20e 20e 20e 20e

WastewaterTreatmentDemand
Z% Y% S Segment A SegmentB SegmentC X% 20
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Watersheddevelopmentprojectsareanefficienttoolto managenaturalresourcessuchaswater
WatershedManagement
Point1 Point2 Point3

Water Treatment

WasteWater Treatment

FundAllocation
x4 x3 x2 A

x1

FinancingpatternofX

P j tManagement Project M tPhases Ph


XPhase YPhase C D ZPhase E F

A
A

C
WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

Point1 9

WastewatertreatmentindustryinIndiamainlyadoptsthe followingtechniques
TypesofWastewaterTreatmentTechnologies(2/2)

SAMPLE
A
Point1 Point2

Point1 Point2

Point1

Point2 Point3

Point1 Point2

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Drivers&Challenges Summary

Drivers
RisingPopulationandUrbanization RapidIndustrialization ChronicGroundWaterContamination FluctuationsinGroundWaterLevel OperationalAdvantagesinIndia

Challenges
PoorInfrastructure WaterPricingMechanism UnaccountedforWater

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LowcostmakesIndiaaveryattractivedestinationtosetup wastewatermanagementplants
OperationalAdvantagesinIndia
Finding1 g 1 Sub Finding

Impact

Point1 Point2
SubPoint1

Major Operational Advantages inIndia

Point1 Point2

Point1 Point2

Point1
Subpoint1

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Certainfundamentalrequirementsneedtobefulfilledfor theinstitutionaleffectivenessofthewatersector
RequirementsforEfficientGovernanceofWater

SAMPLE
WaterGovernance
SegmentA SegmentB
SegmentX SegmentY

X1 X2 X3 X4
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y1 Y2 Y3 Y4

Note:NRW Nonrevenuewater WATERANDWASTEWATERMANAGEMENTININDIA2013.PPT

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RecentDevelopments Summary

DIWALIConcept

Recent Developments l
PopularityofPPPModel Entry yofForeign g Players y

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TheXconceptisexpectedtoaddressIndiaswaterrelated challenges
X TheXConcept(2/2)

TechnologyConcepts

Point1

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CompetitiveBenchmarking(1/5)
PublicTradingComparables(FY20)
Company1 Company2 Company3 Company4

MarketCapitalization(INR mn)

SharePrice(INR)

EV/EBITDA(x)

EV/Revenue / (x)

PERatio

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Public:DomesticCompany CompanyA(1/4)
CompanyInformation
CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange Address 91 91 website 19

OfficesandCentres India

ProductsandServices
Category Segment Products/Services

HeadOffice

KeyPeople
Product1,product2,product 3,. Person1 Person2 Others ,p product2, ,product p 3 Product1, Person3 Person4 N Name D i ti Designation Designation Designation Designation Designation

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Public:DomesticCompany CompanyA(2/4)
Financial i i lS Snapshot h
INRmn
80000 60000 40000 20000 0

K Ratios Key i
NetProfit/Loss y3 y4 INRmn
4,000 3 000 3,000

TotalIncome y1 y2

Particulars

yoychange 2012 (201211)


4.18 2.44 3.14 8.70 3.74 13.05 1.69 11.80 6.63% 1.27% 0.31% 4.22% 7.00% 41.88% 3.30% 20.65%

2011

2010

2009

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets
2.45% 1.18% 2.82% 4.48% 3.26% 28.83% 1.60% 8.85% 7.56% 0.64% 2.30% 1.95% 8.70% 72.52% 4.41% 11.80% 6.66% 1.06% 2.89% 2.94% 7.11% 84.18% 3.16% 9.74%

x1

x2

x3

x4

2,000 1,000 0

20

20

20

20

FinancialSummary
ThecompanyearnedanetprofitofINRxmninFY20,as comparedtonetprofitofINRymninFY20 ThecompanyreportedtotalincomeofINRymninFY20, registeringanincreaseofz% %overFY20 Thecompanyearnedanoperatingmarginofy1%inFY20,an increaseofx2percentagepointsoverFY20 Thecompanyreporteddebttoequityratioofz1inFY20

CostRatios
Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales)
7.41 2.55 2.58 70.17% 19.38% 7.54% % 77.58% 16.84% 4.96% % 83.00% 6.32% 4.85% % 84.27% 6.07% 4.76% %

LiquidityRatios
CurrentRatio CashRatio
4.44% 7.01% 0.85 0.12 0.89 0.11 1.12 0.11 1.07 0.11

LeverageRatios
DebttoEquityRatio Debt b toCapital i lRatio i InterestCoverageRatio
26.01% 5.59% 71.49% 3.65 0.79 0.90 2.90 0.74 0.52 2.24 0.69 1.58 2.26 0.69 1.42

KeyFinancialPerformanceIndicators
Indicators
MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) PERatio(Absolute)

Value(dd/mm/yyyy)

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover
10.53% 21.14% 20.63% 44.31% 24.03% 3.04 0.49 1.08 6.17 0.70 3.40 0.62 1.36 11.09 0.92 1.54 0.58 1.04 9.48 0.93 1.44 0.47 0.79 12.42 0.84

Improved

Decline

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Public:DomesticCompany CompanyA(3/4)
KeyBusinessSegments
SegmentA 100% 50% 0% 20 X CompanyAhasearned revenuesfromthissegment onlyforthelastXfiscals
100%

KeyGeographicSegments
A B

x1
50%

x2 y2 20

x3 y3 20

x4 y4 20

y1
0%

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BusinessHighlights
Description News OperatesasacivilengineeringconstructioncompanyinCountryA Involvedindesigning,engineering,andbuilding(EPC)transportationprojects,includingbridges,flyovers, Overview
roadways,andrailways;andpowerprojects,suchasnuclear,hydroelectric,andthermalpowerprojects, aswellasexecutinghighvoltagetransmissionlines Engagesinoilexplorationandrealtydevelopmentbusinesses Hasinitiatedtalkswithinvestorstoselluptox%stakeinitslistedsubsidiary,CompanyB Intendstoamalgamateitsx%powergeneratingsubsidiaryCompanyCwithitself

Certifications

ItistheonlyCountryAConstructionCompanytohavebeenaccreditedwithXforallfieldsofCivil
EngineeringWorksincludingdesign

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VariousfactorsleadtopotentialwatercrisisinIndiawhich canbedealtwithbyprovidingsolutionsandopportunities
StrategicRecommendations
A B C D

SOLUTI IONS

Point1 Point2 Point3

Point1 Point2 Point3

Point1 Point2 Point3 Point4 Point1

OPPORTUN NITIES

Point1 Point2 Point3 Point4 Point1 Point2 Point3 Point1 Point2 Point3 Point1

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