Transcript
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2008
Investor Presentation
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2 GMR : Leading Infr
3 Airports : Building
4 Power : Lighting In
India : Secular Gro1
Key Investment Highlight
5 Urban Infrastructu6 Strong Managemen
7 Financial Highlight
Shareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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7132 2
150.37
76
India: Secular growth in infrastruc
Strong growth in Indian Economy Leading to increase
US$ bnGDP growth
X Plan (2002
Indian economy has shown strong
GDP growth in FY2007 and
continues to be among the
fastest growing economies in theworld
Resulting in increasing domestic
consumption and higher capital
expenditure by corporates across
sectors
Mid term ap
plan highligh
as a key imp
economy
Infrastructur
the XIth pla
7.5% of GDP
Source: Consultation PIndia
Source: Asian Development Outlook, 2007
1 2
201
62
18 8
492
ture
in infrastructure investment And increased opportunity for the private sector
Power
Roads
Airports
Railways
Ports
Others Private Sector Participation
$40 billion
$27.4 billion
$6.3 billion
$10.6 billion
$13.3 billion
-2007) XI Plan (2007-2012)
raisal of the Xth 5 year
ted lack of infrastucture
ediment to growth of the
e spend plan targets for
were revised from 4.6% to
per, Planning Commission, 2007; Govt of
Given the scale of infrastructure
spending, the government is
encouraging private sector
participation through PPPprojects
Private sector participation is
estimated at 29.6% of total
spending in the XI plan
0 200 400 600
.
on
Source: Consultation Paper, Planning Commission, 2007;Govt of India
1
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building
4 Power : Lighting I
India : Secular Gro1
5 Urban Infrastructu6 Strong Managemen
7 Financial Highlight
Shareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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GMR Group has evolved very quic
The GMR Group was established in 1976 and isand National Stock Exchange (NSE).
GMR Group has rapidly expanded into infrastru
Airports
GMR IndustriesSugar plant in Sa
tonnes per day
Agro based Business
Infrastructure
onstruct ng an
capacity of 3500
Corporate SocialResponsibility
GMR Varalakshm The Foundation h
improving lives a It focuses on Edu
Empowerment an
The Group was also engaged in the Banking (Iin focus to infrastructure.
ly into a diversified conglomerate
listed company on Bombay Stock Exchange (BSE)
cture and other businesses:
tdkili in AP having cane crushing capacity of 5000
Energy Roads
tegrate ugar comp ex n a ya av ng cane crus ng
tonnes per day
i Foundationas been working with communities in the quest ofd livelihoods since 1991ation, Health, Hygiene and Sanitation, Livelihood andd Community Development
G Vysya) & IT (iGate), which were divested with shift
2
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GMR Infrastructure Limited: India
AIRPORTS
ENERGY
Development of Delhi &Hyderabad International airport
Modernization of Istanbul airport
Power Projects (11 Nos)
Operational (3 Nos)
Fla
Infr
Pow
Ass
Bal
driv
Cur
3,300 acres SEZ in Tamil Nadu
250 acres Aviation SEZ atHyderabad
250 acres Multiproduct General
SEZ at Hyderabad
ROADS
OTHERS
n er eve opmen os
Gross Capacity of 5147.625 MW1
Road Projects (6 Nos; 421 km)
Operational (2 Nos;152 km)
Under implementation (4 Nos;
269 km)Net Revenu
T
Key finan
FY07:
MI) - U
Note: 1Capacity of the Alaknanda power project to be increa
24%
8%
s leading infrastructure company
ship company of the GMR group
structure Developer, Owner & Operator of Airports,
er, Roads and SEZs
ts with exclusive concessions ranging from 15-60 Years
nced Revenue Model blend of stable and volume
en growth streams
ent Market ca italization of US 7 - 8 bn
(9M FY08) EBITDA (9M FY08)
otal = $351 mm Total = $125 mm
ials
evenue - US$495mm; EBITDA - US$141mm & PAT(After
$44mm
3sed to 300 MW subject to approval of project development plan by the Uttarakhand govt.
57%16%
18%
9%Airports
Power
Roads
Others66%
%
Power
Airports
Roads
Others
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GMR infrastructure business portf
CoD 389MW in Vemagiri
Power Airport
Awarded 180 MW Holi Bajoli
Awarded 300MW Alkananda
Awarded 160 MW Talong
Awarded Hyderabad Airpor
Awarded Delhi Airport
First international Foray
Award Sabiha Gokcen Airpo
Turkey
MoU for 1,050 MW in Chattisgarh
Awarded 250 in Marsyangdi Awarded 300 MW Upper Karnali
MoU for 1,050 MW plants (2) in
Orissa
CoD 200MW in Chennai
CoD 220MW in Mangalore Ventured in airport
sector
Ventured into
the Power
sector
FY1999
FY1997
Eight Power projects
Gross Capacity of 5,148.5
MW
Mix of short/long term PPAs
Two of Indias busiest
international airports -
Delhi & Hyderabad
Modernizing Sabiha Goc
Internation Airport in
Istanbul, Turkey
lio across sectors
FY2007
FY2006
FY2002
Roads Other opportunities
rt
1 Annuity & 3 Toll
Road Projects
Tamil Nadu
SEZ project
2 Hyderabad
SEZs
FY2005 CoD 2 annuityroad projects
ken
6 Road Projects
2 operational, 4 under
implementation
Combined length of 421kms
Balanced mix:3Annuities,
3 Toll-based
Signed MoU for 3,300acres
SEZ in Tamil Nadu
FY2001
4
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GMR Corporate Structure
GMR Infras
ENERGY ROADS
GMR Tambaram-Tindivanam ExprPrivate Limited (GTTEPL) - 93
GMR Tuni-Anakapalli ExpresswaysLimited (GTAEPL) - 59 KM
GMR Ambala-Chandigarh ExprePrivate Limited (GACEPL) -35
GMR Jadcherla Expressways Pvt(GJEPL) - 58 KMs
GMR Power Corporation Private Limited
(GPCL) 200 MW
51.0%
100%
100 %
51 %
99 %
74 %
74 %
100 %
100 %
GMR Energy Limited (GEL) 220 MW
Vemagiri Power Generation Limited(VPGL) -388.5 MW
GMR Energy Trading Limited
GMR Consulting Engineers Limited
GMR Pochanpalli ExpresswaysLimited (GPEPL) - 103 KM
GMR Ulundurpet Expressways PLimited (GUEPL) - 73 KMs
GMR Highways Private Limit
100 %
89 %
80 %
100 %
100 %
50 %
GMR Mining and Energy Pvt Limited
GMR (Badrinath) Hydro PowerGeneration Pvt Limited (GBHP) 300 MW
GMR Kamalanga Energy Limited 1050MW + 1050 MW
ructure Limited (GIL)
AIRPORT
esswaysKMs
Private
swaysKMs
Limited
Delhi International AirportPrivate Limited (DIAL)
Sabiha Gokcen International Airport (SGIA),Istanbul, Turkey
GMR Krishnagiri SEZ Limited100%
GMR Hyderabad International AirportLimited (GHIAL)
OTHERS
100%
GMR Corporate Centre Limited (GCCL) **
GMR Aviations Private Limited (GAPL)
63 %
50.1 %
40 %
rivate
rivate
Operating Assets Under Development Assets
Percentage of holding represents our Direct and Indirect Shareholding
** GCCL is a company Limited by Guarantee consisting of 9 members including GIL and otherSubsidiaries of GIL
ed
5
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GMR Infrastructure : A Compelling
Key player in the Indian Infrastructure Over US$ 500 bn investments planned over n
GMR is well positioned to benefit from this
Entry in the MSCI India index reinforces the
1
Broad Based Infrastructure play:
Significant presence across high growth sect
Consistently enjoyed early mover advantage
2
Strong track record & established Player
Extensive experience of developing and exe
3
Established a reputation of reliability and ti
Balanced revenue mix
Healthy mix of fixed and variable revenue s
4
Strong Management Team
Experienced and strong management team
5
Significant growth pipeline Plans to tap into new opportunities across t
Domestic Opportunities: Foray into railwa
International Opportunities: Airports in deopportunities
6
Investment Story
story:ext five years with PPP model to play significant role
large growth opportunity
ompanys strength in infrastructure development
rs like airports, power and roads
:
uting projects
ely project completion
reams across airports, power and roads
acked by strong partnership with international players
e entire infrastructure space
s; power transmission; real estate development, etc
veloping countries, other specific power and roads
6
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GMR: Partnership with best in classuccessful execution of projects a
Europes largest cargo hu
Europes 2nd largest pass
Operator and manager ofTake-Off and Landing (ST
Largest Airport retailer in
Indias premier infrastrucurban infrastructure
Airpor
ts
One of the leading engine
One of the worlds largestUS$400bn
Koreas largest integratecapacity
Global leader in Heavy InIndustrial Plant & Engine
Malaysia's leading congloKhazanah Nasional Berha
Power
Roa
ds
s global players to ensureross sectors
nger airport
Malaysias 39 airports which comprise international, domestic and ShortL) ports
Malaysia with 40 outlets in 4 airports
ture finance organisation - over 332 projects financed in power, roads,
ering and construction companies in Turkey
diversified organizations with a market capitalization of about
electric utility which controls approx 88% of Koreas generating
dustries with global presence in Shipbuilding, Offshore & Engineering,ring, Engine & Machinery and Construction Equipment
merate in infrastructure-building, is a wholly-owned subsidiary ofd, an investment arm of the Government
7
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Key Investment Highlights
2 GMR : Leading Infr
3 Airports : Building
4 Power : Lighting I
India : Secular Gro1
5 Urban Infrastructu6 Strong Managemen
7 Financial HighlightShareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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Passenger Traffic : Growth In Leading In
0
5
10
15
20
25
30
Mumbai Delhi Chennai Bangalore Kolkatta H
22.2520.44
8.97 8.12
5.99 5
25.61
23.52
10.66
10.107.42
InMn
Delhi Airport accounted for the highest growt
FY 07 FY 08
0%
5%
10%
15%
20%
25%
Mumbai Delhi Chenna
15% 15%
Traff
dian Airports
21%
6%
22%
9%
42%Delhi
Hyderabad
Mumbai
Chennai
Other 42 Airports
PAX (Dom+Int) distribution in FY2008 (Total PAX = 115.5 mm)
derabad
.75 6.93
h in air passengers movement in the world in 2006 (Source: TOI)
8
i Bangalore Kolkatta Hyderabad
19%
24% 24%21%
ic Growth ( % )
Delhi and Hyderabad airports control 27% of the passenger traffic
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Delhi International Airport: Moderof the busiest airports in the coun
Concession period 30 + 30 years
Phases of development I, II, III, IV & V
Land 5,100 acres
Ultimate pax capacity 100mn (Phase I: 37mn)
Ultimate cargo capacity 3.6 mn tons (Phase I: 0.6 )
Completion date 2010 (Phase I)
Estimated project cost US$ 2,244mn (Phase I)
Revenue Share 45.99 % shared with AAI
Project Overview
Source
Equity in
accruals
Unsecure
Deposits/Shares
Loan fro
Total
Financi
Details of Phase I Development
Phase 1 A (Completion by Mid 2008)
Third Runway of 4430 Meters & Taxiways
Existing Arrival Terminal Expansion
Additional 3 Baggage Claim BeltsNew Departure Terminal
72 Check-in Counters 16 Security Channels In-line Baggage Screening
Upgradation of Existing Terminal 2
72 Check-in Counters 16 Security Channels In-line Baggage Screening
Phase 1
New Inte
1
1
Upgrada
High Spe
Multi-lev
General
Upgrada
nization and development of onetry
Consortium Partners
Sponsor Shareholding
50.1%
10.0%
10.0%
3.9%
26.0%
Contribution ($mm)
luding internal
312
d loans/Interest Free
Redeemable Preference 685
FIs/Banks 1,247
2,244
g Plan (Phase I)
9
(Completion by Mar 2010)
rgrated Terminal 3
8 Contact Stands
68 Check-in Counters
6 Immigration Counters
0 Security Channels2 Baggage Claim Devices
ion of Cargo Terminal
ed rail Link
el car Parking (4300 lots)
vaitaion Facilities Expansion &
ion of Utilities
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Master plan to develop a world clwell in time for Commonwealth G
Phase I Maste
New Integrated Terminal(T3) by 2010
500,000 Sq Mts
48 Contract Stands 168 Check-in Counters
49 emigration Counters
46 immigration Counters
30 Securit Channels
Efficient planning to mini
Figure not to sca
12 Baggage Claim devices
New Run
4430
ss passenger terminal by 2010,mes
r Plan1
Land Bank Total Land -5,100 Acres
Land for Property Developmen
- 5% of Demised Premises
Hospitality Development Mix- Commercial- Retail- Convention Facility- Hotels
Existing Domestic Terminal (T1
ize impact on existing operations
10
le
ay (3)
ts
Matt McDonald DesignEngineers
L&T awarded to build the thirrunway & Terminal 3
Owners Engineers Appointed
TCE, Lahmeyer and ParsonsBrinckerhoff for T1, T2 & T3respectively
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Additional revenue potential fromunder DIAL
Hospital
Commercial development of non-transfer assets
str ct:
AcresLand for commercial development
Airport Types of real estate development
Hong Kong Hotels, Commercial, Housing, Retail,
Logistics, Exhibition Centre, Golf
Course
Incheon, South
Korea
Airport free zone, Business centre,
Hotels, Retail, Convention centre
Changi, Singapore Free Trade Zone, Logistics, Hotel,
Commercial
Suvarnabhumi,
Thailand
Logistics, Exhibition Centre, Hotels,
Commercial, Hospital, Housing, Retail
in line with the emerging Aerotropolis at major Asian airports
Figure not to sca
development of real estate asset
ity
Initial development plan
5% of Airport Site can be used for commercial development of i.e.,
about 250 Acres
Development to be undertaken by developers through six land
parcels in Phased manner
Master plan prepared for initial development of 45 acres to set upHospitality district through developers (Built Up area of 5.91 mn
Sq.ft)
Lease period 30 + 30 years
Permitted develo ment includes Air ort related facilities Hos italit
11
le
Activities, Commercial & Retail)
Set up Delhi Aerotropolis Pvt Ltd (DAPL) for Property development
DAPL to provide basic infrastructure facilities and supervise the
development
Appointed Jones Lang LaSalle and Lehman Brothers for strategic plan
preparation and for bidding management
Received Expression of Interests (EOI) for development of land
RFP issued to shortlisted prospective bidders
Bids received and are being evaluated
DIAL is evaluating undertaking land development on its own
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DIAL: Commercial Business Develo
Operations Partner
Duty free RetailAlpha Airport & Future Group Consortiufor 3.25 yrs (US$125 mn)
AdvertisementTimes Innovative Media Pvt Ltd for 3(US $ 41.75 mn)
Airlines HandledCurrently Handles 61 airlines (9 Domestiand 52 International
Existing Airport: Commercial Initiatives
pments
rs
c
7.15
8.88
0123456
789
10
Revenue Per Pax ( $ )
2007 2008
Aero Revenueper pax
3.25 3.5
Non-AeroRevenue per pax
3.90 5.4
Total Revenueper pax
7.15 8.9
Revenue Growth Pattern
12
Revenue ($mm)
147
207
0
50
100
150
200
250
2007 2008 (E)
Revenue ( $mm )2007 2008
Aero Revenue 66 80
Non-AeroRevenue
81 127
Total Revenue 147 207
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Delhi Airport Historical Growth Pattern
121
137
167
201
228
100
150
200
25013% Growth
22% Growth
20% Growth
13% Growth
Aircraft Movements (In Thousands & Per Annum)
Mar-04 Mar-05Mar-06 Mar-07
Mar-04 Mar-05 Mar-06 Mar-07
10.3912.78
16.24
20.44 23.24
0
5
10
15
20
25
23% Growth
Mar
27% Growth
26% Growth 14% Growth
Ma
Passengers Traffic (In Millions & Per Annum)
of Business Volumes
296
345
383390
429
250
300
350
400
450
17% Growth
11% Growth 2% Growth10% Growth
Cargo Tonnage ( In Thousand & Per Annum)
Mar-04 Mar-05 Mar-06 Mar-0708 Mar-08
r-08* Figures are Projected till Mar 08,based on the Figures available till Dec 07.
The passenger Traffic has grown at a CAGR of 18% over the past 4 years
For the Period ended 9 months FY 08 the composition of Domestic toInternational Passengers has been 65 : 35
The Cargo Traffic has grown at a CAGR 7% over the past 4 years .
For the Period ended 9 months FY 08 the composition of Domestic toInternational cargo has been 30 : 70.
The Air Traffic Movements has grown at a CAGR of 14% over the Past4 Years .
For the Period ended 9 months FY 08 the composition of Domestic toInternational ATMs has been has been 75 : 25
13
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Hyderabad International Airport:airport in the country
Concession period 30 + 30 years
Phases of development I, II, III & IV
Land under development 5,500 acres
Ultimate pax capacity 40mm (Current capacity of 12
Concession fee 4% of revenue (deferred payme
basis from 11th year)
Airport to be operational March 2008
Estimated project cost US$620mm (Phase I)
Master Planners Consortium comprising Cowi of
Norway, Avai Plan of Denmark
Mumbai
Project overview
Hy
dera
ba
dInterna
tiona
lAirpo
rt
Source: AAI website, Company
Completion of Phase I Developmen
Phase I development plan is on tra
evelopment of fastest growing
m)
nt
& Stup
Sponsor Shareholding
63.0%
11.0%
13.0%
13.0%
Consortium partners Catchment area
Hyderabad
14
Emergence of Hyderabad as a major IT& ITeS
destination
Centrally located with respect to India,
South-East Asia and Middle East
Catchment area of 75mm people
Growth in the passenger traffic - 40% over
the past 2 years (2005-07)
Airport Master planners are Cowi of Norway,
Avai Plan of Denmark and Stup of Mumbaiby March 2008
*Artistic impression
k Uniquely positioned to capitalize on thecurrent growth
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Hyderabad Airport Current Growth Pat
0
10
20
30
4050
60
70
80
90
38
52
8
36% Growth
37% Growth
33% Growth
17% Gro
Aircraft Movements (In Thousands)
28
69
0
1
2
3
4
5
6
7
8
MAR 04 MAR05 MAR 06 MAR 07 MAR
2.24
4.04
5.75
5.755.754.04
27% Growth
42% Growth
42% Growth
20% Gro
Total Passengers (In Millions)
MAR 04 MAR05 MAR 06 MAR 07 MAR
2.85
tern at existing Airport
1
th
0
10
20
30
40
50
60
34
37
4651
26% Growth
9% Growth
24 % Growth 11% Growth
Cargo Tonnage (In Thousand Tonnes)
27
08
6.9
th
08 MAR 04 MAR05 MAR 06 MAR 07 MAR 08
16
The passenger Traffic has grown at a CAGR of 27% over the past 4 years
For the year FY 08 the composition of Domestic to InternationalPassengers Expected to be 70 : 30
The Cargo Traffic has grown at a CAGR 14 % over the past 4 years
For the year FY 08 the composition of Domestic to International cargoExpected to be 55 :45
The Air Traffic Movements has grown at a CAGR of 25% overthe Past 4 Years
For the year FY 08 the composition of Domestic to International ATMsExpected to be 85:15
* Note: Mar 08 figures are projected based on 9 months actual figures till Dec07
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Sabiha Gokcen International Airpo
Developm
Concession period 20 years (including
construction period of
30 months)
Concession fee In lieu of revenue
share, EUR1.93bn, to
be paid in 20 years
with no fee payable in
first 3 years
Current PAX traffic 4mm growing at 40%
Ultimate capacity 24mm PAX
Brief overview of the project
Existing
Do
Te
s ma e capex uro m ons
Equity participation in the project
40%
40%
20%
Imple
Concconstcomp
Expeyear
Finan
rt, Istanbul, Turkey.
New
International
Terminal
Hotel
Car Park Area
ent plan for the Sabiha Gokcen International Airport in Istanbul
Intl +
estic
rminal
mentation Agreement has been signed.
ssion provides for operation of the existing facilities andruction of new international terminal building and itslementaries.
ted to take over the operations by second quarter of calendar008.
cial Closure expected by 2nd Quarter of Calendar year 2008.
17
*Figure not to scale
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Outline of Emerging Opportunities
More than 20% rowth in assen er traffic in the
Airport
Restructuri
Delhi
Mumbai
Chennai
Kolkata
Developme
Significant
1
2
21.7% 23.7%
31.4%
2004-05 2005-06 2006-07
Growth in passenger traffic in India
PAX
(mm)59.3 73.4 96.4
Source: IBEF report on Discover Opportunity: Indian Infrastr
last 3 years
Significant growth in the passenger traffic and
fleet of aircrafts anticipated over the next 10
years
Government has announced a national airport
upgrade and modernization plan which will see an
investment of over USD 9 billion by 2010
Hyderabad
Bangalore
Navi Mumbai
Pune, Goa, N
Greater Noida
Upgradation
Phase I 10
airports
Phase II & III
airports
3
4 Developme
in Domestic Airports Sector
Cost ($mm) Current Status PPP Particulars
g/Modernisation of world class airports
Under implementation
26% AAI 74% Pvt. Consortium of GMR, Fraport, MAP
& IDF3,750
Under implementation
26% AAI 74% Pvt. Consortium of GVK, ACSA & BSD
Modalities under
consideration Being developed by AAI
1,250Under implementation
Being developed by AAI
t of Greenfield airports
opportunity for private sector participation
cture; AAI Website; Rupees per USD : 40
Under implementation 26% AAI & Govt. of Andhra Pradesh
74% GMR group and MAHBUnder implementation A consortium of Siemens, Zurich Airport an
L&T has been choosen as the strategic JV
partners
Bids invited
gpur &
2,500
Modalities under
consideration
74% equity contribution by private entities 26% by the respective state government an
AAI (subject to a cap on investment by AAI
of 35 non-metro airports
Master plan has
been approved
251,750
Master plan yet to
be approved
AAI to fund the entire airside and terminal
development
Commercial development at most of theviable airports to be taken up by private
sector
nt of merchant airport policy is under consideration
18
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IndiaFocus
Airports Sector Growth Strategyinternational presence
Delhi International Airport
One of the busiest airports in India
Concession of 30 + 30 yrs and investmentof US$ 2,237 mm
Largest Airport Developer in India
Hyderabad International Airport
GlobalInvestments
passenger traffic in FY2006-07
Concession of 30+30 years with investmentof US$ 620 mm
SGIA Istanbul Turkey1
Development of new international terminaland operation of existing facility
Expected to take over the operations by firstquarter of calendar year 2008
Note: 1GMR is part of the winning consortium, n
ith strong focus on establishing
Participate in up-coming opportunities in Indian airports sector
Balanced mix of Brownfield and Greenfield projects to be considered in
portfolio selection
Position as premier airports company in India
Strategy for transforming itself into a global operator
Invest in airports in developing countries with
High traffic growth
Need for infrastructure expansion
Stake acquisition in global airports
Enhance understanding of global airport sector without taking on
substantial developer role
De-risk from India centric business
Develop structural and organizational capabilities for future
expansion strategy
19contract signed as yet
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building
4 Power : Lighting I
India : Secular Gro1
5 Urban Infrastructu6 Strong Managemen
7 Financial Highlight
Shareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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GMR has successfully implemente
GMR Energy Limited
FacilityContracted Capacity
Fuel
COD
PPA
PLF YTD (Last full year)
Facility
Contracted Capacity
Fuel
GMR Power Corporation
Pvt. Ltd.
Vemagiri Power
Generation Ltd.
COD
PPA
PLF YTD (Last full year)Plant Availability in (%)
Facility
Contracted Capacity
Fuel
COD
PPA
and operationlized Power Assets
Barge-mounted power plant
One of the largest operationalIndependent Power Producer (IPP) inKarnataka
ISO 14001, ISO 9001 and OHSAS18001 certified
ISO 14001 and OHSAS 18001compliant
Dr. M.S. Swaminathan Award forbeing an environment friendly
Mangalore, Karnataka220Mw
Naptha
2001
7 Years till 2008; at 85% PLFTake or pay fixed charges
(%) 9.77 (26.40)
Chennai, Tamil Nadu
200Mw
Low Sulphur Heavy Stock
Companys third Greenfield powerproject
Gas is expected to be available by 1
st
quarter 2008
PPA got extended from 15 to 23 years
Expansion plan for additional 700 MWscapacity
20
1999
15 Years till 2014; minimumofftake at 68.5% PLF
(%) 60.65 (52.06)93.931 (93.94)
Vemagiri,Andhra Pradesh
Contracted 370Mw;
Merchant Sale 17.625MwNatural Gas
2006
23 Years till 2029; at 80% PLFTake or pay of fixed charges
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Strong pipeline of power projects
Orissa (Coal)
Power asset
1
Location Kamalanga, Orissa Kamalanga, Orissa
Capacity 1,050MW 1,050MW
Fuel Coal Coal
Contract Build Own and operate for Build Own and ope
Orissa II (C2Facility
details 25 years from Plant COD 25 years from Plan
Expected CoD 2012 2012
Project status Coal linkage of 500MW and
500MW to be obtained
after substantial progress
EPC bids received & are
being evaluated.
Water Allocation received
PPA: GRIDCO (upto 25%)
and remaining by Power
Trading Corporation (PTC)
Coal Allocati
Rampia &
Rampia obt
1000 MW cap
under development
Uttarakhand (Hydro)Chattisgarh (Coal)
under development
43
Chattisgarh Badrinath, Uttarakhand
1050MW 300MW
Coal Hydro
rate for Build Own and operate for 40 BOOT for 45 years from
al)
21
t COD years from Plant COD implementation
Agreement2012 2013
n namely
Dip
ined for
acity.
Signed MOU with the Govt.of
Chhattisgarh
State Govt. has recommended
to Ministry of Coal for Coal
linkage.
Pre-feasibility report
submitted.
Land identified and state
Govt.agreed to allot the same
DPR finalised and
submitted.
SNC-Lavalin appointed
for review of DPR and
detail engineering.
Implementation
Agreement by March
2008
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Power projects: Continued focusmix and expansion of geographic
3,8877.625MW of power projects spread across the country
Bajoli Holi180 MW
Fuel type - HydroCoD - 2015
Alaknanda300 MW1
Fuel type - HydroCoD - 2013
Talong160 MWFuel type - HyCoD - 2014
Orissa1,050 MWFuel type - CoalCoD 2012
Chattisgarh1,050 MW
Upper Karnali300 MWFuel type - HydroCoD 2015
Upper Marsyangdi250 MWFuel type - HydroCoD 2015
Coal powerCoD- 2012
Vemagiri387.625 MWFuel type GasPPA 23 years till 2019(80% PLF)
Chennai200 MWFuel type Sulphur
PPA 15 years till 2014(min. offtake at 68.5% PLF)
Mangalore220 MW
Fuel type NaphthaPPA 7 years till 2008
(85% PLF)
Operating assets Under implementation
3 projects
(807.625MW)
8 projects
(4,340MW)
Note: 1Capacity to be increased to 300 MW subject to a
Orissa (Kamalanga 2)1,050 MW
Fuel type - CoalCoD 2012
n diversification of revenue, fuelresence
ro
Diversified fuel mix1
Projects distributed across
all the fuel types Hydro,
thermal & Gas
Tied up fuel for most of the
plants
Total capacity = 5,147.625M
Diversified revenue mix2
16%
61%
23%
Liquid Fue
Coal
Hydro
Mix of short-term & long-term Power PurchaseAgreements (PPAs)
Exiting 3 projects have long term PPAs tied up
Fixed revenue stream from the Mangalore & Chennai
plant
Availability of gas for the Vemagiri project to create
future revenue growth potential
New projects (other than the Orissa project) have the
flexibility to choose between short-term/long-term PPAs
Distribution of total capacity
PPA - 1390 MW, Merchant Power 3757.625 MW
pproval of project development plan by CEA 23
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Power projects: Strategy to transfpower developer with global foot
Leveracaptur
opport
abroad
Improve performance andcompetitiveness of existing
business
Acquisition of Coal Mines
Secure fuel supply for thermalpower plants throughacquisition / joint developmentof domestic as well asinternational coal mines
1 2
Add furth
diversifiedIndia
Bid for UMhas been s
1
Exploring opportunities inIndonesia & South Africa
Alternate fuel opportunities
Explore options for alternatefuel to reduce reliance on any
one type of fuel
nves n
developin
Need foexpansi
Govern
Explore br
opportuniacquisitiorights and
2
rm itself into an integratedrint
e expertise tofuture growth
nities in India and
Diversify into allied powerinfrastructure businesses
3
r power assets
across fuel types in
PPs where fuel supplyecured
Actively explore opportunities in
domestic power distribution
State of Gujarat, Karnataka &Maharashtra have initiatedprivate participation
s n ne g or ng
countries with
r infrastructuren
ent support
own field
ies throughs of developmentoperating assets
va ua e power ransm ss on
opportunities in India and othergrowing economies of SouthAmerica & Africa
Explore Joint Ventures and/oracquisition to realise value
24
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Domestic Power sector scenarios f
Consump
tio
npercap
ita
0.
14.1
18.3
1.42.2
6.37.3
0
5
10
15
20
Cananda US Germany Russia Brazil China Indi
Per Ca ita Consum tion Thousand K
Per Capita Consumption in India is extremcompared to other countries
Huge Capacity additions have been planned in power
generation in 11th Five Year Plan to the tune of 79 GW
against 135 GW currently installed
XIth five year plan estimates a total investment oppo
of over US$ 100 bn in the power sector by 2012
De regulated power sector to contribute about 40% of
additional capacity by 2012
Government Initiatives have led to huge opport
Lo
Source: UNDP, Human Development Indicators,2006 ; CEA a
uture outlook
Characterized by chronic power shortages withpeak hour shortage of over 14% in past few years
Total capacity of 135 GW highly inadequate giventhe over 9% projected growth in Indian economy
One of the lowest per capita consumption acrossdeveloping countries.
Per capita consumption is expected to double by
1.5
a Developing
Countries
h/ ear
ly low as Significant scope for improvements in powersector
Total capacity addition aimed during the11th plan -79 GW
as
tunity
unity for the private sector participation in the sector
Installed Capacity in GW
2016 (CEA) requiring rapid increase in generation
capacity
d Crisil Research Power Annual Review25
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building
4 Power : Lighting I
India : Secular Gro1
5 Urban Infrastructu6 Strong Managemen
7 Financial Highlight
Shareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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Particulars GTAEPL GTTEPL
Location Tuni-Anakapalli Tambaram-
Tindivanam
Road Length 59 kms 93 kms
Concession Period 17.5 years incl.
construction period
of 2.5 yrs.
17.5 years incl.
construction period of
2.5 yrs.
Concession Duration May. 2002 Nov. 2019 May. 2002 Nov. 2019
GMR Group Road Projects implem
AnnuityAnnuity
Financial Closure June 2002 June 2002
Project status Started commercial
operations
Started commercial
operations
Source: Company annual report,1Project expenditure as of March 31, 2007
Mobilizing all resources and harnessing the be
ensure that the four Road projects unde
GPEPL GACEPL GJEPL GUEPL
Pochanpalli Ambala-Chandigarh Faruknagar-Jadcherla Tindivanam-
Ulundurpet
Construct - 86 kms +
O&M Sweetener - 17
kms
Construct - 35 kms Construct - 46 kms +
O&M Sweetener - 12
kms
Construct - 73 kms
20 years incl.
construction of 2.5
years
20 years incl.
construction period
of 2.5 years
20 years incl.
construction period
of 2.5 years
20 years incl.
construction of 2.5
years
Oct. 2006 Oct . May. 2006 May. Aug. 2006 Aug. 2026 Oct. 2006 Oct. 2026
nted/under implementation
Toll
6 6
September 2006 May 2006 August 2006 October 2006
All major contracts
have been awarded
All major contracts
have been awarded
All major contracts
have been awarded
All major contracts
have been awarded
t practices in all aspects of project implementation to
r implementation are commissioned on schedule
26
R d j O b l di i i i di
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Road projects: On way to becomeHighway Sector
Private sector
participation initiated
GMR won bid for TTand TA projects
CoD of 2 annuity road
ro ects
1995
2001
2005
Awarded 1 annuity and
3 toll road projects
Plans under
implementation to add
more projects in FY08
2006
2007
onwards
a leading concessionaire in Indian
Scale of operation1
Holds concessions for about 421km from NHAI under6 road projects
2 operating projects (GTAEPL 59km & GTTEPL -93km) and 4 under implementation (GPEPL 103km,
GACEPL 35km, GJEPL 58km & GUEPL 73km)
Diversified asset mix2
Balanced mix of annuity-based (3 projects, 255-
Annuity projects GTAEPL, GTTEPL & GPEPL Toll-based projects - GACEPL, GJEPL & GUEPL
Robust financial management3
Achieved financial closure for all projectsunder implementation
Securitization of revenues from annuity road projects
Significant growth opportunities4
Looking at adding significant projects by FY08
Exploring international opportunities
27
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Roads: Significant opportunity for
India has one of the largest road networks in the world
National highways constitute only 2% of road network but
carry ~40% of the total road traffic
Vehicle traffic has been growing at a pace of 10% per ann
Total length = 3.3 million km
2% 4%
14%
80%
National Highways
State Highways
Major district roads
Rural & other roads
Source: Report of the Core Group on the Financing of the Nati
over the last 5 years
Supportive regulatory framework
Provision for encumbrance free land for work
Provision for Viability Gap Funding upto 40% of project c
on a case to case basis
100% tax exemption for 10 consecutive assessment years
of 20 years
Concession period is linked to actual traffic as per Model
Concession Agreement
Right to collect and return toll for BOT projects
FDI up to 100% in road sector
private sector participation
13.1
16.3
7.0
10.3
4.2 4.2
NHDP - I&II NHDP - III NHDP - IV NHDP - V NHDP - VI NHDP - VII
NHDP has planned expenditure of ~US$48bn by 2012
20 000km10 000km13 146km 6 500km 1 000km N/A
um
onal Highway Development Program
st
out
2.3
8.6
1.6
8.6
0.4
1.6
NHDP - I&II NHDP - III NHDP - IV NHDP - V NHDP - VI NHDP - VII
Opportunity for private sector participation worth $23bn (08-12E)
Total=US$55bn
58%42%
Private sector contribution Contribution from other sources
28
Leveraging expertise to explore O
portunities across Land
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Leveraging expertise to explore OTransportation Sector
Highways
Project Length (km)
Panipat Jalandhar 300
Surat Dahisar 240
Planning to add further assets by FY08
Opportunities under consideration:
6 laning projects (891 kms)1
a u ar pe - ayawa a
Chennai-Tada 43
Project
4 laning of HyderabadVijayawada
Machilipatnam Corridor
2nd phase of six laning projects in Golden
Quadrilateral
Expressway Projects under NHDP Phase VI
Other corridor projects in FY08
International opportunities in Turkey,
East Europe and Africa
Due diligence process initiated
2
3
portunities across Land
Railways
Entry level strategy for the railway sector
has been prepared
Railway core team formulation
under progress
Strategic tie-ups finalization process
under progress
ppor un es en e n:
Dedicated Freight Corridor (DFC) projects
Rail Vikas Nigam Ltd. (RVNL) projects
Modernization of the New Delhi Railway
Station
1
2
29
3
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GMR Group Foray into Special Eco
MOU with Tamil Nadu Industrial DevelopmenMulti-product SEZ at Krishnagiri District, Ta
SEZ to be developed through an SPV which
SPV to get active support from the state go
process & timely implementation of the pro
To be operational by 2009 & the entire deve
Project expected to generate exports turno
Project details
Type of
SEZ
To house Bio Technology, IT &
Expected to generate direct
Land
details
3,300 acres
Land is to be acquired over a
Location Krishnagiri District Tamil Nad
Excellent connectivity throug
Project
cost Estimated cost for developme
Development cost including i
omic Zones (SEZs)
t Corporation (TIDCO) for the development of ail Nadu
ill be a JV with TIDCO
ernment & TIDCO for timely land procurement
ect.
lopment will be completed by 2014.
er of about US$ 4 bn by 2014.
ITES, Traditional electronics & Engineering companies
indirect employment for over 3 lakh people
period of 1 year
, close to Bangalore metropolis
h NH7 and railway network
nt of basic infrastructure is INR 23bn
dustrial and social infrastructure would be INR 110bn
30
i hli h
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building4 Power : Lighting I
India : Secular Gro1
r an n rastructu
6 Strong Managemen
7Financial Highlight
Shareholding Patte
8
structure Player
Gateways To Indiadia
th In Infrastructure
e g ways : at s o rogress
n
GMR has an experienced and dedi
ated team of individuals across
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GMR has an experienced and dedihierarchy managing projects acro
GM Rao
Group
Chairman
Srinivas Bommidala
Chairman -Urban
Infrastructure &
Highways
GBS Raju
Chairman Corporate
& International
Business
GMR Holding BoardGMR Holding Board
Management teamManagement team
Airport Energy
Raajkumar CEO
G.K. Raghunandanan CFO
Avinash R Shah Sr. VP - BD
G. Loganathan - EVP BD
R. K Goel VP Transmission K V V Rao Director & President
S N Barde VP O & M
Ashish Basu VP Commercial &Contracts
I V Srinivas Rao VP - Finance
B. S. Shantharaju CEO
Andrew Harrison COO
Shirish M Navlekar CFO
I Prabhakara Rao VP ProjectDevelopment
Phua chai Teck VP - Planning &Develop
Sudhir Mathur Chief Commcl .Officer
Rajgopalsamy CFO
P Sripathy Head -Project Mgmnt.
ated team of individuals acrosss sectors
G Kiran Kumar
Chairman -
Airports
B V N Rao
Chairman
Energy & Agro
K. Balasubramanian
Member Group
Holding Board
GMR Infra BoardGMR Infra Board G. M. Rao
Srinivas Bommidala
G. B.S. Raju
G. Kiran Kumar
B.V. Nageswara Rao
K.Balasubramanian
O B Raju
Arun K. Thiagarajan
K.R. Ramamoorthy
Prakash G. Apte
R.S.S.L.N. Bhaskarudu
T. R. Prasad
Udaya Holla
P M Kumar
Member Group
Holding Board
Strategic FinanceUrban Infrastructure & Highways
Rajan Krishnan COO
D R Santhana Krishna CFO
V Jayaraman COO Property Devlp.
O Bangaru Raju COO - StrategicInitiatives & Central Procurement
Y M Shivamurthy President, Legal
A, Subba Rao, EVP CIG
A.S. Cherukupalli, EVP Company Sec.
Vijay Vancheswar Head,Corp.Comm.
P M Kumar - ED Group CorporateDevelopment
R. Ram Mohan EVP GCMs office
Ranjit Muregesan , CEO
Madhu Terdal, EVP
Cenk CEO Turkey
International Development
Uday M. Chitale
Corporate Services
Ashutosh Agarwala CFO
31
K I t t Hi hli ht
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building4 Power : Lighting I
India : Secular Gro1
5Urban Infrastructu
6 Strong Managemen
7Financial Highlight
Shareholding Patte
8
structure Player
Gateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
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Category No. of shares % H
Promoters 1,333,982,600 73
Foreign InstitutionalInvestors
1,846,281,07 10
Domestic FI's/Banks 115,264,109 6.
GMR Infrastructure Limited Shar
MFs/Insurance Companies 14,002,070 0.
Bodies Corporate 60,419,571 3.
Retail Including Indian
Public,HUF & Others 112,361,631 6.
Total 1,820,658,088 10
Floating Shareholding
26.73% Equity of the company
37.94 %23.09 %
lding
.27
.14
33
holding Pattern
23.69 %2.88 %
12.41 %
FII'S
Banks/ Domestic FI's
MF'S
Bodies Corporate
Retail Including resident individuals, Trusts , HUF & others
77
32
17
.00
32
K I t t Hi hli ht
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Key Investment Highlight
2 GMR : Leading Infr
3 Airports : Building4 Power : Lighting In
India : Secular Gro1
5 Urban Infrastructur6 Strong Management
7Financial Highlights
Shareholding Patter
8
structure Player
ateways To India
dia
th In Infrastructure
e & Highways : Paths To Progress
n
GMR St th ith
i i i
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Gross revenues (US$mm)
GMR: Strong revenue growth with
250 267
495
319
423
FY05 FY06 FY07 9MFY07 9MFY08
CAGR 40.8%
1
The Increase of 32.6% is mainly attributable to additional revenues
EBITDA (US$mm) & margins (%)3
102115
141
107125
FY05 FY06 FY07 9MFY07 9MFY08
40.8%43.1%
33.1%
33.4 %36.0%
Note: Exchange rate INR/USD = 39.75
CAGR 17.6%
from the operations of DIAL & Higher PLF in GEL & GPCPL
The Increase of 17.1% is mainly from the Additional EBIDTA from DIALoperations & from other sectors mainly from Short term investments
811
1,076
1,757 1,622
3,697
FY05 FY06 FY07 9MFY07 9M FY08
improving margins
Gross assets (US$mm)Gross assets (US$mm)
2
CAGR 47.1%
The Increase of 127.9% is mainly attributable to Capital work
PAT after MI (US$mm) & margins (%)4
17 18
4438 40
FY05 FY06 FY07 9MFY07 9MFY08
6.8%6.7%
10.3% 11.5%CAGR 60.9%
33
12.0%
in progress of Hyderabad & Delhi International Airports
The increase of 5.2% is mainly from the Operations of DIAL
Fi i l P fit & L t
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Financials: Profit & Loss account
GMR Infrastructure Limited: Consolidated Profit & Loss account
Gross revenues
Net revenues
Other income
Total expenditue
EBIDTA
EBIDTA margin (%)
Interest & finance charges
Depreciation
PBT
Note: Exchange rate INR/USD = 39.75
Taxation
PAT (Before Minority Interest)PAT margin(%)
PAT (After Minority Interest)
PAT margin(%)
(US$mm)
FY2005 FY2006 FY2007 9M FY2008
250 267 495 423
250 267 427 351
3 1 5 16
151 153 290 242
102 115 141 125
40.8% 43.1% 33.1% 36%
24 33 36 25
49 55 34 30
29 27 71 69
34
. . . .
1 3 10 13
28 24 61 5511.20% 8.99% 14.2% 15.88%
17 18 44 40
6.80% 6.74% 10.3% 11.51%
Financials: Balance sheet
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Financials: Balance sheet
GMR Infrastructure Limited: Consolidated Balance sheet (US$m
Sources of funds
Shareholder's funds
Minority interest
Loan Funds
(a) Secured Loans
(b) Unsecured Loans
Deferred tax Liabilities
Total Liabilities
Application of funds
Note: Exchange rate INR/USD = 39.75
Investments
Net Current assets
Miscellaneous expenditure
Total assets
)
FY2005 FY2006 FY2007 9M FY2008
111 144 501 1539
93 107 132 154
459 652 760 1318
28 95 172 425
9
691 998 1569 3445
35
44 64 66 1303
59 183 294 199
0
691 998 1569 3445
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Tha k You
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