Corporate Presentation for Power-Tele Tower Infrastructre

1. PTTI Power-Tele Towers Infrastructure Corporate Presentation January 2011 1 Power-Tele Towers Infrastructure

2. PTTI Vision statement To become global player in Power Transmission, Telecom, Energy Sector and a significant player In other related businesses and providing Superior value to all Stakeholders 2 Power-Tele Towers Infrastructure

3. The Team PTTI Rajesh Ganatra Director primarily responsible to carry out the strategic plans and policies as established by the board of directors. As Company will engage a team with good marketing plan and material procurement plan and with well experienced technical consultants for product design, process know how and for operational requirements, product quality and high production levels as envisaged can be maintained. 3 Power-Tele Towers Infrastructure

4. Market Summary PTTI PRESENT INDIAN SCENARIO AND MARKET PROSPECTS Transmission towers are one of the pillars of the telecommunication and the power sector. The tower manufacturing industry today caters mainly to the telecom and power sectors in the country. Telecom companies and Power transmission . companies are facing the challenging task of meeting the growing demand and aggressive roll-out plans. These companies rely on specialists to get the signal transmission / power transmission equipment ready for their roll­outs. The companies could be either only tower suppliers or turnkey solution providers who provide all services from designing to erection of towers. These players need to meet stringent quality requirements and also need to be capable of meeting the changing requirements of the telecom and power industries. 4 Power-Tele Towers Infrastructure

5. PTTI Prior to the telecom reforms/privatisation the telecom density was just 2%, which was quite low compared to any other developed countries having 70-80% telecom density. At present the telecom density is about 12% and expected to raise upto 20% by the year 2007. Here tower companies India based on the number of towers: 5 Power-Tele Towers Infrastructure

6. PTTI 6 Power-Tele Towers Infrastructure

7. PTTI As new players come along, the tower business will be intense as it would be difficult for a new player to build its own infrastructure. The Indian wireless industry, with a 32% penetration, is only second after China in terms of subscribers at 325 million. Most of this growth has come from urban India where penetration is close to 60%, but in rural markets it's less than 15%. And it's here that the industry sees the largest opportunity for growth. The challenge, though, for Indian telecom operators is the average revenue per user (ARPU), which, at less than $7, is one of the lowest in the world. This figure drops significantly when one moves into rural and semi-urban areas, and is estimated to be as low as $2. The telecom regulatory Authority of India has estimated that 3,30,000 towers will be required for the year 2010. The market is expected to witness 17% p.a. growth from 2008-2015 with the estimated requirement of 554,000 towers by 2015. 7 Power-Tele Towers Infrastructure

8. PTTI POWER TRANSMISSION SECTOR The power sector has been identified by The Government of India as a key sector of focus. It has embarked on an aggressive mission - "Power for All by 2012 If power generation expands, it is but natural that the entire chain of transmission and distribution will also have to be enhanced so power reaches where it is supposed to reach. So around Rs 380,000 crore is expected to be invested in the transmission sector in the 11th and 12th Plans. Unlike the global norms, wherein the investment ratio between generation and transmission is 1:1, in India it is far less at 1:0.4. But this should improve in favour of transmission in future 8 Power-Tele Towers Infrastructure

9. PTTI Even in the current plan, transmission network is expected to be increased nearly 50 per cent and transformation capacity about 70 per cent. Investments totalling Rs 115,000 crores are expected in the 11th plan. Almost half of these investments will be made by Power Grid Corporation of India as it intends to double transmission capacity across the national grid. In the first two years of the current plan (FY08 and FY09), the company has spent only 27 per cent of the targeted. investment, which means that the rest will flow in the remaining three financial years. That means more orders for transmission towers. Orders from state utilities are expected to accelerate too. State electricity boards have also become active and a number of tenders are expected to be floated. Additionally, the ultra mega power projects, namely Mundra, Sasan, Krishnapatnam and Tilaiya, will entail an investment of around Rs 5,000 crores for setting up a transmission system. 9 Power-Tele Towers Infrastructure

10. PTTI And then, there is also the global opportunity. Owing to the financial crisis, the $404 billion international market was in a limbo for the past one year, and this affected the order inflows of Indian companies. But with economic activity picking up across the globe now, order books could swell again. Africa and the Middle East are said to be high-growth markets: These two regions offer immense opportunities on account of their need for a better power transmission network, funding support from multilateral agencies, huge power generation plans and increased spending by oil-producing countries. 10 Power-Tele Towers Infrastructure

11. The Planning Commission expects the Indian economy to grow at 9-10% a year through 2012. To achieve a targeted growth rate of 10%, power generation must increase at a rate of 10-12%. Though the ministry of power has estimated electricity demand to grow at 7.5%, it is expected that the demand would surpass the ministry's estimates by a fair margin. Tower construction cost forms 22-25% of the total cost of the power transmission and distribution lines. India's transmission perspective for the 10th & 11th five year plans focuses on the creation of a National Grid in a phased manner by adding over 60,000 km of Transmission Network by 2012. The cumulative Inter-regional Grid capacity (currently at 9450 MW) had been planned to be raised to 37150 MW by the end of the 10th five-year plan. 11 Power-Tele Towers Infrastructure PTTI

12. Hence market prospects for tower manufacturing sector may be considered as bright. With expanding market and better penetration of mobile telephony in the rural India, there will be enormous market potential for supply of telecom towers, even though the end users are seriously involved in tower sharing with other service providers. Similarly huge investments to be made for power generation and power transmission during the Eleventh & Twelfth Plan period, provide excellent opportunities for supply of telecom towers. Hence there is an excellent scope for making new investment in manufacturing of telecom and transmission towers. 12 Power-Tele Towers Infrastructure PTTI

13. Business Concept 13 Power-Tele Towers Infrastructure PTTI

14. 14 Power-Tele Towers Infrastructure PTTI

15. PTTI 15 Power-Tele Towers Infrastructure PTTI

16. PTTI 16 Power-Tele Towers Infrastructure PTTI

17. PTTI 17 Power-Tele Towers Infrastructure

18. PTTI 13 Profitability ratios (based on fourth year performance ) Profit before interest, depreciation and tax-------------------------------------------------------- 11.39% Gross sales income Profit before interest and tax------------------------------------------ 21.24% Capital employed Profit after tax to Equity share capital 47.80 % Break even income Rs. 7769.00 lakhs Cash break even income Rs. 5339.00 lakhs 18 Power-Tele Towers Infrastructure

19. PTTI Business units Power Distribution Railways Telecom & design Transmission Business Head Business Head Business Head Business Head BUSINESS HEADS • Turnkey • Railway • Substation • Telecom electrification transmission towers • Distribution • Earthwork lines upto • SCADA • Design • Bridgework 1200KV • OPGW services • Platform • Tower testing Network • Balance of Construction • Hotline plant up to 765KV • Track laying stringing • Signaling 19 Power-Tele Towers Infrastructure

20. Goals and Objectives PTTI PTTI people will increase shareholder value by aggressively pursuing growth and profit opportunities that leverage our engineering, manufacturing, distribution, information management and financial services expertise. We grow profitably PTTI will achieve its sells target of Rs. 500 cr. In next five years. PTTI will be the leader in providing the best value in Power , Telecom and Wind mill Towers , various industrial steel structures and support services for customers dedicated to building the world's infrastructure and developing and transporting its resources. We provide the best value to customers. PTTI is dedicated to improving the quality of life while sustaining the quality of our earth. We encourage social responsibility. 20 Power-Tele Towers Infrastructure

21. PTTI Key success factors relationships between manufacturing capabilities and business unit Excellent vendor relationships & volume Strong prequalification based procurements Status The quality, delivery dependability, flexibility, and the ability to compete with low prices. 16 years of work experience in handling business PTTI advantage State of the art Dedicated, skilled work designing capabilities executive management's ability to use manufacturing capabilities and those of other functional areas to achieve business unit goals and targets. force with cross country project execution capability 21 Power-Tele Towers Infrastructure

22. Financial Plan PTTI 22 Power-Tele Towers Infrastructure

23. PTTI 23 Power-Tele Towers Infrastructure

24. PTTI Transmission And Distribution Line Safety Symbols 24 Power-Tele Towers Infrastructure

25. PTTI 25 Power-Tele Towers Infrastructure

26. PTTI Opportunities & challenges CHALLENGES OPPORTUNITIES Strong market growth in power and Telecom sector by center for monitoring Indian economy Delay in Government spending on » » power Increased spending on Transmission in Volatile commodity prices (steel, » » Middle East, Africa and Africa; zinc, aluminum, cement) opportunities in countries where not yet present Over capacities & competition from » Old Players PGCIL spending on track; SEBs picking » up Additional allocation to APDRP & RGGVY Availability of quality manpower to » » to intensify Distribution growth cater to growth in With the advent of 3G, large scale » opportunities for telecom in the offing 26 Power-Tele Towers Infrastructure

27. PTTI Transmission & Distribution: overview TRANSMISSION: India/ South Asia DISTRIBUTION India » 11th Five Year Plan » › PGCIL - tenders to be floated for about » Continue with APDRP* scheme to reform Rs.5,000 crs (USD 1b ) p.a. i th 11th in the urban distribution and reduce the Five Year Plan AT&C losses across India to less than 15% › State Electricity Boards - coming up levels with investments in 400KV » Continue with RGGVY* to achieve 100% Transmission lines village and household electrification, to for T Transmission › T t l XIth plan outlay f achieve `Power for all by 2012' National Rs.140,000 crs ( USD 28bn) [Central Electricity Policy target Rs.75,000 crs., States Rs.65,000 crs.] APDRP* » Nepal / Bhutan/ Bangladesh/Sri Lanka » (USD 8bn) to be invested in » Rs.40,000 crs ( › Mid size/ small size projects b i transmission and distribution floated RGGVY*: Power for All by 2012 » TRANSMISSION: International › Electrification of villages: Outlay Rs. 24,000 crs (USD 4.8bn) & Electrification of all rural households: Outlay Rs.16,000 IEA estimates USD 6.1 trillion of » crs. (USD 3.2bn) investments in T&D sectors during 2005- 2030 (transmission USD1.8tn, distribution USD4.3tn) Large scale opportunities in Africa and » Middle East India, Middle East and Africa to account for » upto 18% of that spend APDRP: Accelerated Power Development Reforms Programme RGGVY: Rajiv Gandhi Grameen Vidhyootikaran Yojana 27 Power-Tele Towers Infrastructure

28. PTTI Transmission & Distribution: client list Africa Middle- East CIS C Am N Eas Asi Sou Asia/ India 28 Power-Tele Towers Infrastructure

29. PTTI Transmission & Distribution: market players INDIA ASIA PAC EUROPE KEC Hyundai Inabensa Kalpataru Harbin Power Cobra Jyoti HG Power Isolux L&T Hyosung Power Elecnor Gammon Viscas Electromontaz Tata Projects Xlan Energoinvest Isolux SAG AFRICA Inabensa ETDE Cobra Opti Power ELTEL I Comm Kahrif MIDDLE EAST Aster Karakib EMCO El-Sewedy NCC Bajaj Hidelco ETA Deepak Cables Elject Gulfar EMC MEEDCO TURKEY Best & Crompton SPIC Emtamitas Sa-Ra STFA 29 Power-Tele Towers Infrastructure

30. PTTI Railways OVERVIEW CLIENTS Large Potential in the Indian Railways » sector 11th Plan Outlay (2008-2012) – Rs. › 200,000 crs. (USD 50bn) Major Projects- Eastern & Western › MARKET PLAYERS Freight Corridors, Monorails in metros, Delhi–Mumbai Industrial Signalling & Electrical Corridor (DMIC) Telecom works works Kalindee L&T › McML IRCON International huge opportunities within BharatRail SPIC sumo composite project space - Kiran Udyog ECI earthwork, platform construction, MR Trading Cobra signaling, etc. AR Rail Best & Crompton Aster Tata Projects › Alkon Builders Fedder’s Lloyd VN Reddy Talupala Major investments in Railways planned » Vijay Wargi Sikka Enginnering by countries in Gulf, Africa and South Civil Infra works East Asia IRCON International Ltd IVRCL L&T Hindustan Construction Co Gammon India Ltd C&C Ltd Simplex Infra Ltd AFCONS DS Construction Nagarjuna Const. Co Soma Enterprises ERA Construction Co 30 Power-Tele Towers Infrastructure

31. PTTI Telecom OVERVIEW CLIENTS Domestic » Current Indian mobile subscriber base in › excess of 525 10-12 million being added every month › Auction for 3G spectrum ended › Increased bandwidth and transmission › requirements, strong upside for tower manufacturers Industry forecasts indicate that more than » 350,000 towers with estimated capex of Rs. 60,000 crs. (USD12bn) will be required in MARKET PLAYERS the next two years EPC Application International » projects ICOM Africa and Middle East, where subscriber Aster Comtel › growth continues GTL ITI ICOM Karamtara TCIL ABB Currently bidding for tower requirements › in Greece and Spain with service ARCON HFCL Areva providers R.S. Steel GTL S&C R.N. Infra Tejas Siemens Ganges Aster GE Deepak Galvanisers Sujana 31 Power-Tele Towers Infrastructure

32. PTTI Future growth plans 35 32 Power-Tele Towers Infrastructure

33. PTTI Multi-pronged growth strategy Transmission Consolidate Distribution EPC Telecom Substation Grow Railways Transmission BOO Asset Ownership Telecom 33 Power-Tele Towers Infrastructure

34. Power-Tele Towers Infrastructure 34 PTTI

35. PTTI Thank You 35 Power-Tele Towers Infrastructure