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NITIN FIRE PROTECTION INDUSTRIES LIMITED

NITIN FIRE PROTECTION INDUSTRIES LIMITED. Investor Presentation. June 01, 2011. Disclaimer.

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NITIN FIRE PROTECTION INDUSTRIES LIMITED

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  1. NITIN FIRE PROTECTION INDUSTRIES LIMITED Investor Presentation June 01, 2011

  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 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 figures for FY 2007, FY 2008, FY 2009, FY 2010 and FY 2011 are derived from the audited consolidated financial reports. The Company accepts no liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or in any other manner disseminated.

  3. Company Overview • One of the leading and established players in the area of fire protection and Fire suppression systems and Building Management systems. • Promoted 25 years ago by Mr. Nitin M. Shah with a strong domain expertise in the fire protection business • Providing range of products and services • Basic level fire extinguishers to the sophisticated fire protection & security systems and building management solutions • High pressure seamless cylinders for CNG and Industrial applications • 11.11% share in a JV with GSPC, HPCL, BPCL, GAIL and other consortium partners, for oil exploration in Rajasthan State • Strong financial growth with Revenues growing from INR 1,005 mn in FY 2007 to INR 4378 mn in FY 2011 registering a CAGR of around 44 % NITIE 1230 Fire Suppression System Fire Extinguishers Fire Alarm Control Panel CNG Gas Storage Cascade Industrial Cylinders Smoke Detector

  4. Milestones • Entered into JV for existing Cylinder manufacturing business with Worthington Industries Inc. • Certificate to act as Licensing agency by State Govt. • Successful bid for NELP VI in Rajasthan • IPO – Listed at BSE & NSE • Forbes Award – Listed on Forbes Asia for best under a billion for the year 2009 Established 1995 2007 2008 2009 2010 2011 • Acquisition 40% stake in New Age Co. LLC in UAE • Further Acquired substantial stake in New Age Co. LLC in UAE • Forbes Award – Listed on Forbes Asia for best under a billion for the year 2010

  5. Business Activities Fire Protection & Security Solutions High Pressure Seamless Cylinders Oil Exploration

  6. Business Activities Fire Protection & Security Solutions • 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 more than 18 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 86 approvals from Underwriters Laboratories Inc., USA; Loss Prevention Certification Board, U.K. and VDS, Germany • Servicing marquee clients in the field of telecom, data centres, refineries, offshore oil platforms and institutions like BSE • Strong domain expertise in designing, integration, supply, installations, testing, commissioning and servicing of various types of fire protection systems & solutions • Facility at Navi Mumbai and Vishakhapatnam for integration of various fire protection solution including fire extinguishers • Fire protection equipments sold under the brand name “NITIE”. • Government of Maharashtra, Directorate of Maharashtra Fire Services has granted the licence under the provisions of Sub-Section (3) of Section 9 of the Maharashtra Fire Prevention and Life Safety Measures Act, 2006 (Mah. III of 2007) to act as a Licensed Agency for the purposes of Fire Prevention and Life Safety Measure in relation to :- • Fire Fighting System Installation such as hydrants, sprinklers, pumping etc • Detection and Fire Suppression System • Passive Protection such as cable protection, fire doors etc

  7. Business Activities Fire Protection & Security Solutions • Sales of INR 2,990 mn for FY 11 accounting for 68% • of our total revenues • CAGR of 53% from FY 2007 to FY 2011 Products

  8. Business Activities Fire Protection & Security Solutions High Pressure Seamless Cylinders Oil Exploration

  9. Business Activities High Pressure Seamless Cylinders • Manufacturing and supply of High Pressure Seamless Cylinders for CNG and Industrial applications • Catering to both domestic and export markets • Integrated manufacturing facility located at Vishakhapatnam SEZ (A.P.) with an installed capacity of 500,000 cylinders per annum • 38 Domestic and international approvals • The Company has entered into Joint Venture agreement for existing Cylinder manufacturing business with Worthington Industries Inc. • Worthington Industries Inc., is the world’s leading global supplier of high pressure cylinders, which strives to continually deliver solutions to its customer that exceed their expectations in quality, services and value Products

  10. Business Activities Fire Protection & Security Solutions High Pressure Seamless Cylinders Oil Exploration

  11. Business Activities Oil Exploration • Entered into a production sharing contract for exploration and prospecting of a crude oil block in Rajasthan (NELP VI) • GAIL and GSPC are the main operators for the block and HPCL, BPCL and Hal worthy are other consortium members. • As per recent estimates this block has a potential of 32.3 million barrel of prospective four wells of oil reserve (Source: GSPC DRHP) • NFPIL has 11.11% share in a JV with GSPC, HPCL, BPCL, GAIL and other consortium partners, for oil exploration in Rajasthan State RJ 19 • Rig building is in progress at location C, consent to establish (CTE) granted by RSPCB Jaipur for location A and C • As on March 31, 2011, Company has invested ~INR 151 mn

  12. Corporate Structure NITIN FIRE PROTECTION INDUSTRIES LIMITED 100% 100% 100% 100% 40% 100% Alert Fire Protection Systems Pvt Ltd * Logicon Building Systems Pvt Ltd * Nitin Global Pte Ltd, Singapore NitinVentures FZE, UAE Worthington Nitin Cylinders Limited## Eurotech Cylinders Pvt Ltd New Age Company LLC, UAE # *Under Amalgamation # Controlling Interest ## Joint venture

  13. 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

  14. Industry Overview: Fire Protection Equipment • The industry can be classified into three categories: • Fire Suppression Systems • Gas based systems used for protection of high value equipments and critical assets • Clean agent gas based protection for Critical assets like server rooms and data centers • Fire Detection Systems • These consist of Intelligent & conventional systems • Latest systems use specialized cameras as detectors • These systems can be programmed through internet • Fire Fighting Systems • Water based fire fighting systems for building protection • Hydrant Sprinklers • Future Outlook: • In 2010, the fire protection equipment industry was estimated to be INR 25 bn and is expected to reach INR 45 bn by 2013, a CAGR of 25% • Key Growth drivers: • Increasing investments in Data Centers, BPOs, Malls, R&D, Power/Petrochemical, Telecom and IT • Terrorist Threats • Government Regulations • Key Competitors: • Honeywell, Firepro, Siemens, Tyco, Johnson Controls, UTC and Mini Max • * Internal Sources for estimates Fire Protection Industry – Size and Growth

  15. Industry Overview: High Pressure Seamless Cylinders • Future Outlook: • Key demand driver for industrial cylinders is industrial gases, whose demand is set to grow at 5-6% y-o-y during 2006-12. The demand for cylinders is expected to show the same trend. • Total number of CNG vehicles, including new vehicles and replacements, expected to reach 50 mn in 2020 as compared to 8.5 mn in 2007-08, a CAGR of 16% as per IANGV (International Association for Natural Gas Vehicles). • Key factors driving growth: • Incentives provided by governments of various countries including India for conversion to and use of CNG vehicles. • Increased environmental awareness and global warming concerns leading to a move towards more eco-friendly CNG powered vehicles. • Key manufacturing bases outside the developed markets are in India and China. The entire demand from growing markets of GCC, Iran and Egypt is fully catered through imports, as there is no local production. • Demand in South East Asian regions such as Myanmar, Malaysia, • Thailand, Indonesia etc is met through imports due to absence of • any domestic or regional production base. • High Pressure Seamless Cylinders, based • based on their application, can be • broadly classified into: Industrial • Cylinders and CNG Cylinders. • Industrial Cylinders cater to gases, • healthcare, food & beverage, fire • fighting, welding, chemicals, energy • industry, metallurgy, defence, space • research, etc. • CNG cylinders cater to automobile • sector as onboard CNG cylinders. • Global players include Worthington • (Austria), Luxfer (UK, USA, Australia), • Faber (Italy), NK (Korea), Dynetek • (Canada), Beijing Tianhai Industry • Company (China), Mannesman Cylinder • Systems Limited (Germany), Argentoil • (Argentina), Cilbras (Brazil), etc • Indian players include Everest Kanto • Cylinders, Rama Cylinders and Nitin Fire.

  16. Growth Drivers • Growing economy leading to industrial growth • Boost in infrastructure related projects in India • Increased emphasis on safety and security, specially after the rise in terrorist attacks globally and in India • Intelligent Building Management industry becoming an integral part of the modern construction expansion • Revamping of Plants and Offshore oil Platforms • Strong emergence of high growth verticals like Telecom, IT, Malls, multiplexes, retail chains etc. • Government compulsion for upcoming and existing buildings to have fire protection systems • Fire act being considered and to be implemented strongly across the country starting with Maharashtra

  17. Growth Strategy Growth through Acquisitions Increase Market Share Developing Alliances & Tie-up’s Expand Distribution & Sales Presence

  18. Board of Directors CHAIRMAN & MANAGING DIRECTOR Nitin M. Shah – Promoted Nitin Fire Protection Industries Limited. Expanded company operations over the years and currently looks after overall business activities Led by a highly disciplined and motivated team of professionals Board members are from diverse backgrounds EXECUTIVE DIRECTORS Rahul N. Shah – Experienced in commissioning and installation of Fire Detection and Alarm Systems, Gas Suppression Systems. All import transactions & dealings are done under his supervision. NON-EXECUTIVE DIRECTORS K. H. Vaidyanathan - Responsible for all technical negotiations with suppliers and customers for cylinders and allied items. Kunal N. Shah –Experience in development and design of CNG dispensers for CNG fuel vehicles. He has also played an important role in setting up High Pressure Seamless Cylinder manufacturing unit. INDEPENDENT DIRECTORS Dr. Surendra A. Dave – Is associated with various committees of Government of India dealing with reforms in the capital market, mutual funds sector, insurance sector and pensions. Krishna Kant Jha - Was an Executive Director (Health, Safety & Environment) of Gas Authority of India Limited and has a total experience of 40 years in the areas of project management, operations and maintenance, administration and health, safety and environment related activities. Ramakant M. Nayak – Is associated with various banking and advisory companies through which he actively contributes in areas of banking, finance, economy, human resources, business strategy and risk management.

  19. Key Managerial personnel Gopal Krishna Shahi – Associated with the Company for more than a decade, he is an experienced professional in the field of fire protection and safety equipments. Currently, he is in charge of the technological development of products and technical negotiations with customers, in respect of turnkey and general fire safety products. Pravin Shah – An electrical engineer with 35 years of experience, he is currently the Technical Director, taking care of international approvals for various products and systems, technical support to sales, marketing and installation teams, vendor development, training to technical staff and quality system management. Partho Roy – With more than 26 years of work experience in the area of IT, fire and safety, he is currently responsible for framing of policies and procedures, preparation, execution and implementation of long and short term business plans, recruitment, training and deployment of personnel, achieving corporate objectives and complying with statutory requirements. Kulbir Singh Sadhu – Holds a Master’s degree in Science (Physics) with a specialization in electronics. He has a work experience of 33 years in the area of fire detection, alarm and automatic gas suppression systems, sound reinforcement and public address systems, electronic systems and building management systems and is currently heading the technical department of the UAE subsidiary. Mukesh Ajmera – Associated with the company since its inception, he has an extensive experience in the existing industry. Currently, as the Vice President of the marketing department of the Company, he is responsible for overall marketing operations in the systems division as well as marketing of other products and services offered by the Company Mony Narayan – With over 32 years of experience in the area of fire detection and suppression, he holds a Master’s degree in Mechanical Engineering from the Indian Institute of Technology, Kanpur. He is currently, the CEO of the Green Technology Division of the Company. Rakesh Mishra – With over 17 years of work experience in the area of fire security, safety and Engineering Practices, he currently is the functional head of one of our subsidiaries. Managed by a highly qualified team with an extensive experience in the industry

  20. Financial Updates 2010 - 11 • Board of the Directors of the Company has recommended to pay dividend of Rs. 1/- (i.e. 50%) per share on Equity shares of the company, subject to approval of shareholders. • The Company has sub-divided (Split) existing equity shares of Rs.10/- each fully paid up into 5 equity shares of Rs.2/- each fully paid-up. • The Company has appointed M/s Haribhakti & Co, Chartered Accountants as statutory Auditor for the year 2010-11. SALES Stand alone INR 1465mn, Consolidated INR 4379 mn. PBDIT Stand alone INR 336mn (22.93%) Consolidated INR 800mn (18.28%) PAT Stand alone INR 237mn (16.19%) Consolidated INR 534mn (12.19%) SEGMENT SALES Fire Protection Business 68.29%, Cylinders Business 31.71%

  21. Business Updates 2010 - 11 • Rig building is in progress at location C, consent to establish (CTE) granted by RSPCB Jaipur for location A and C. As on March 31, 2011, Company has invested ~INR 151 mn. • The Company has received Underwriters Laboratories (UL) Certificate for Centrifugal Fire Pump for commercial and industrial use • The Company has entered into Joint Venture agreement for existing Cylinder manufacturing business with Worthington Industries Inc. • Government of Maharashtra, Directorate of Maharashtra Fire Services has granted the licence under the provisions of Sub-Section (3) of Section 9 of the Maharashtra Fire Prevention and Life Safety Measures Act, 2006 (Mah. III of 2007) to act as a Licensed Agency for the purposes of Fire Prevention and Life Safety Measure in relation to :- • Detection and Fire Suppression System • Fire Fighting System Installation such as hydrants, sprinklers, pumping etc • Passive Protection such as cable protection, fire doors etc

  22. Business Updates 2010 - 11 • The Company has filed application to the Hon. High Court, Mumbai on May 16, 2011 for amalgamation of Logicon Building Systems Private Limited and Alert Fire Protection Systems Private Limited with the Company. • The Company has acquired substantial holding in Dubai based New Age Company LLC(NA). • NA was established in 1976 at UAE, having offices in Abu Dhabi, Dubai and Sharjah with experience in Installation in seven emirates. NA has also got major Overseas Licenses along with Local Licenses. NA has done various project with Airport Authorities, Municipal Board, Telecommunication sites, Ministry of Education and Civil Defense etc. • The Company has received Forbes Asia 2010 Under A Million Award. Second consecutive Award the company has been honored with this Award.

  23. Key Clients Customer Mapping Company Focus: Widening the customer base

  24. Audited Financials Rupees in Millions Board of Directors has recommended dividend of Rs. 1/- (50%) for the year ended March 31, 2011 to equity shareholders of the Company.

  25. Shareholding & Key Market Data as on May 27, 2011

  26. Innovative Products and Services • Introduced environmentally clean ozone friendly gas suppression system and successfully executed more than 45 projects within span of 12 months which includes users like Wipro, TCS, HP, Tulip , IIT, Aircel, Uninor , ONGC, etc. • Introduced standalone battery operated smoke detector for domestic use • Fire detect is a specialized system which identifies and extinguishes fire within electrical cabinet and small enclosures

  27. Competitive advantage • Successfully completed 25 years of operation • Track record of executing large scale projects onshore and offshore • More than 5000 direct installation on Pan India basis and more than 100000 indirect installation done through various contractors • Repeated business from reputed customers based on our services and performances • Brand Recognition and acceptability by consultants, end users and contractors • Complete range of solutions from portable extinguishers, fire protection solutions including hi-tech fire alarm systems along with Gas suppression system and finally IBMS

  28. Global Business Module • Within the growing demand of Fire protection and our products matching international standards, We have already expanded our reach into countries like – Singapore, Indonesia, Malaysia, Afghanistan, Saudi Arabia, Qatar, Bahrain, Spain, England and Bangladesh to name some • Looking at new geographies and strengthening into above geographies where we have already present

  29. Commercial Strengths • Company enjoys good margins and has no long term borrowings thereby keeping enough room in the balance sheet for any expansion or growth opportunities • With most of business coming out from large Corporate houses and Government we had very small amount of write offs which add to the value of balance sheet

  30. Shareholder update • Over 14,000 share holders since its listing in 2007 • Paying dividends at regular intervals with a growing percentage • As a shareholder, every individual is contributing in making country safe from the fire disasters

  31. Social Responsibility The company has been donating each year a percent of its profit for upliftment of the society by – • Introduced environmentally clean Ozone friendly gas suppression system and successfully executed • Providing basic necessity and also fire protection equipment to social houses, hospitals and temples • Funding eye camps for underprivileged society • Providing insurance policies for employees families • Providing Scholarships for higher education

  32. Thank You Corporate Headquarter 501, Delta, Technology Street, HiranandaniGardens, Powai, Mumbai 400 76. INDIA Tel.: +91-22-4045-7000 Fax: +91-22-2570-1110 nitinfire@vsnl.com http://www.nitinfire.com

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