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Nitin Fire Protection Industries Limited

Nitin Fire Protection Industries Limited. Investor Presentation. November 2012. Disclaimer.

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Nitin Fire Protection Industries Limited

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  1. Nitin Fire Protection Industries Limited Investor Presentation November 2012

  2. Disclaimer This presentation is for information purposes only and does not constitute an 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 of or be relied upon in connection with any contract or commitment whatsoever. 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 not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein. 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 discussions concerning Company’s future growth prospects, are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from 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. Any opinion, estimate or projection herein constitutes 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 information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. All information contained in this presentation is based on management estimates of fire protection industry and has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. The Company accepts 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. This presentation may not be used, reproduced, copied, distributed, shared, or in any other manner disseminated.

  3. Industry Overview 31% Expected CAGR for Indian Fire Protection Market by 2015

  4. The stringent fire protection measures taken by Maharashtra Government will open up business opportunities of Rs 25,000 mn by sale of Fire protection systems Currently, most of the buildings are unprotected or under-protected for the basic requirements of Fire protection Industry – Opportunities Current Market Size: USD 1,330 mn in FY11 Estimated Market Size: USD 3,570 mn in FY15

  5. Company Overview • Nitin Fire Protection Industries Ltd. is one of the largest and established fire protection business in India having grown at a GABR of 45% over last five years with total revenue of ~Rs 5360 million in FY12 • Founded in 1995 by Mr. Nitin M. Shah with a strong domain expertise in the fire protection business, who is also the President of Fire Protection Association of India (FPAI) • Vertically integrated end-to-end solution provider ranging from Basic level fire extinguishers to the sophisticated fire protection & security systems and building management solutions • ISO 9001:2000 certified for Design, Engineering, Manufacturing, Supply, Installation, Commissioning and Servicing and employs over 600 personnel across the globe • Presence in the Middle East and South East Asia through wholly-owned subsidiaries • 11.11% share in a JV with GSPC, HPCL, BPCL, GAIL and other consortium partners, for oil exploration in Rajasthan State • NFPIL has been constantly paying dividends since last 5 years • NFPIL has completed sub-division (Split) of existing equity shares of Rs.10/- each fully paid up into 5 equity shares of Rs.2/- each fully paid-up on November 08, 2010 • NFPIL rewarded its shareholders by capitalizing reserves and issuing bonus shares at 2:5 on September 23, 2011

  6. Group Structure NITIN FIRE PROTECTION INDUSTRIES LIMITED Listed holding company in India Fire Protection Solutions Provider on Turnkey 100% 100% 100% 40% Nitin Ventures UAE Fire protection products distribution Nitin Global Singapore Fire Protection products distribution Eurotech Cylinders India HPS Cylinder distribution Worthington Nitin Cylinders India Seamless cylinder manufacturing JV with Worthington Industries. 11.11% New Age UAE Turnkey fire protection solutions NELP VI India Onshore Oil Block

  7. Key Milestones Further acquired substantial stake in New Age Co. LLc UAE. Listed once again under Forbes Asia for the year 2010. Entered into JV for existing Cylinder Manufacturing Biz With Worthington Industries Inc. Certificate to Act as Licensing Agency by State Govt. Listed for the 3rd consecutive year under Forbes Asia for the year 2011 Received LPCB Approval Expanded operation in Fareast. Acquisition 40% stake in New Age Co. LLC in Dubai Forbes Award – Listed on Forbes Asia for best under a billion for the year 2009. Nitin Cylinders Ltd. (NCL) started its commercial production. Successfully listed on BSE & NSE and expansion in UAE Received ISO 9001:2000 Successfully bid & awarded for NELP VI block at Rajasthan Received major orders from ONGC for replacement of Ozone depletion systems at their offshore Platforms Only Indian Company to use Ozone friendly Fire Protection Systems 1995 1998 2004 2007 2008 2009 2010 2011 Established

  8. Business Segments Nitin Group of Companies Fire Protection (Revenue contribution: 94%)# High Pressure Seamless Cylinders (Revenue contribution: 6%) # • Fire Detection systems • Fire Suppression systems • Fire Protection systems Turnkey Solutions Products • Fire Extinguishers and accessories AMC Services • Refilling • Maintenance #for the year 2011-12

  9. Fire Protection Global Presence • One of the country’s leading end-to-end solutions provider of fire protection, safety and security services • Strong track record of executing projects for 25 years • Primarily focused on Gas based suppression systems for mission critical areas • Range of products approved by domestic and international agencies • Only Indian Company to have approvals from International accrediting authorities like Underwriters Laboratories Inc., USA; Factory Mutual from USA; Loss Prevention Certification Board, U.K. And VDS, Germany for Fire protection systems and products • Servicing marquee clients in the field of telecom, data centres, refineries, offshore oil platforms and institutions • Strong domain expertise in Designing, integration, supply, installations, testing, commissioning and servicing of various types of fire protection systems & solutions • Facility at Navi Mumbai for integration of various fire protection solution including fire extinguishers • Fire protection equipments sold under the brand name “NITIE” Europe Middle East South East Asia India East Africa

  10. Fire Detection systems are primarily the warning systems which activates the system as designed to signal in case of Fire Sudden rise in temperature Smoke In all the above probable cases there is high chance of fire which needs to be attended to. Hence fire detection system installed will give an advance signal for any probable action to be taken There are two types of fire detection systems Manual Fire alarm system – These are generally used where manually fire is detected and with a mode of break glass unit can trigger the alarm system to alert Automatic fire alarm system Conventional type – These are Fire alarm system where you cannot find exact pinpoint of the fire. However, it will give you possible location of fire automatically and sound the alarm. Intelligent type – These are fire alarm system where you can find out exact pinpoint location of fire and will activate the system as designed Fire detection system also consists of smoke sensors, Heat sensors, connected with cable to master console control panel which stores all the data and events These systems are designed as per National Fire Protection Association 72 code Guidelines for installation fire protection systems. These alarm systems are generally used at enclosed areas, free of dust and external temperature like office, commercial complexes, hospitals, mall, schools, theaters etc. etc.  Turnkey Solutions – Fire Detection Systems Beam detector Aspirating Smoke detector Flame detector

  11. Gas based Systems used for protection of High Value Equipments and Critical areas Commonly used on Critical Equipment and data Fire Fighting agent / FM 200 / Novec 1230 and Inert gases for suppression system Helps to control damage and loss of Equipment APPLICATIONS Computer Suites, EDP Facilities and Telecommunications Hardware Internet Service Providers Server Rooms Control Rooms such as railway signalling centres and traffic management centres Stores and archives Heritage Sites such as art galleries and museums Medical and laboratory equipment Petrochemical plant, offshore Oil and Gas installations, pipeline pumping stations Turnkey Solutions – Fire Suppression Systems

  12. Hydrant / Sprinkler System System shall be pressurized continuously to normal pressure (7.5 Kg/Cm2) System is consisting of Hydrant Pumps( EXCLUDED FROM OUR SCOPE), Pressurization arrangement, water mains network, hydrant valves, landing valve, water monitors, hoses, branch pipes, nozzle, hose boxes, etc. MVW Spray System System shall be pressurized continuously to normal working pressure up to the Deluge Valves. It shall consist spray pumps, pressurization arrangements, water mains network, deluge valves, isolation valves, Y-type strainers, spray nozzles/projectors/spray nozzles piping net work, detection system, instrumentation, local control panels, cables etc The system shall be automatic and shall be activated by a dedicated detection system to be provided for each of the equipment/area Foam Protection System The fixed foam system shall consist of foam concentrate tanks, pumps, balancing line with automatic controlling valves, foam makers, discharge outlets, inter connection piping, valves, fittings instrumentation, panel and control system. The operation of the fixed foam generator system shall be automatic with the aid of dedicated fire detection system provided in the tank. As the spray system for the tank activate through the bursting of QBD on tank. Turnkey Solutions – Fire Protection Systems Sprinklers Deluge valve and spray nozzle Foam monitor

  13. Portable & Trolley mounted Fire Extinguishers Fire Detectors and Control Panels Manual Fire Alarm Systems Sounder & Beacons Battery24 V DC operated detectors HSSD System Fire Sensing Cable Fire Fighting Pumps Sprinkler & Deluge Valves Water & Foam Monitors Fire Entry & Proximity Suits Fire Escape Chute Fire Fighting Foam Chemicals Products Portable fire extinguishers Detectors Foam monitor Sprinklers

  14. Maintenance The after sales support and maintenance of NITIE brand & other international brands of products is provided by pool of talented engineers from various disciplines Refilling Earns revenue from refilling of fire suppression agent such as Novec 1230/ FM 200 AMC Services Hose Fire Pump Portable Spray Nozzle

  15. High Pressure Seamless Cylinders High Pressure Seamless Cylinders Industrial Cylinders CNG Cylinders • Contract manufacturing with China Govt. plant supplier for Industrial Cylinders under our own brand and as per our design and specifications. • Entered into Joint Venture for our Cylinder manufacturing business with Worthington Industries Inc in Dec 2010 • Today, we are holding minority stake of 40% in Worthington Nitin Cylinders Private Limited (WNCPL) (formerly known as Nitin Cylinders Limited)

  16. Industry Associations • Sourcing of fire protection equipments in bulk to reduce raw material cost • Strong sourcing tie-ups for various key raw material and equipments required for fire protection systems • Tie-ups with renowned suppliers are a key differentiator as regards competition • Authorised and exclusive distributorship in India for various detection and suppression products helps the company

  17. Diversified Client Base Oil & Gas Banking Telecom IT / ITeS Power & Metals Commercial Pharmaceutical Automobile Middle East Indian Navy Indian Air force

  18. Global Approvals UNDERWRITERS LABORATORIES, USA LOSS PREVENTION CERTIFICATION BOARD, UK FACTORY MUTUAL, USA EUROPEAN CONFORMITY, UK BSI KITEMARK, UK VDS SCHADENVERHÜTUNG, GERMANY BUREAU OF INDIAN STANDARDS, INDIA NATIONAL FIRE PROTECTION ASSOCIATION, USA NFPIL stands as the only Indian Company with more than 65 International product approvals in the Fire Protection Industry

  19. Executive Management

  20. Independent Directors

  21. Past Financials Rs. mn Rs. mn CAGR – ~45% Rs. mn Note: Figures of Worthington Nitin Cylinders have been deducted from all the years.

  22. Key Market Information #Institutional holding more than 1% # as on September 30, 2012 Bonus: NFPIL rewarded its shareholders by capitalizing reserves and issuing bonus shares at 2:5 on 23rd Sep 2011 Pledge: As on 23/11/2012, 43,170,000 equity shares of the Company have been pledged for the working capital needs of the biz

  23. NELP VI – Oil Block • Entered into a production sharing contract for exploration and prospecting of a on-shore crude oil block in Rajasthan (NELP VI) in 2006 • GAIL and GSPC are the main operators for the block and HPCL, BPCL and Halworthy are other consortium members • NFPIL has 11.11% share in a JV for oil exploration in Rajasthan State RJ19 • Investment as on Sept 30, 2012 is Rs. 206.72 million

  24. Leading Fire Protection Company Marquee Clients End-to end solutions provider NFPIL International presence Strong execution track record High quality standards backed by domestic and international approvals Strong Tie ups Strengths

  25. Financial Highlights

  26. Financial Highlights

  27. Thank You Nitin Fire Protection Industries Limited Corporate Headquarter: 501, Delta, Technology Street, Hiranandani Gardens, Powai, Mumbai - 400 076. Maharashtra, India. Ph: +91 22 4045 7000 Fax: +91 22 2570 1110 Website : http://www.nitinfire.com Email : nitinfire@vsnl.com

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