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POWER EPC INFRASTRUCTURE SOLAR NATURAL RESOURCES
Investor Presentation Dec 2016
© LANCO Group, All Rights Reserved
Agenda
1 Company Overview
2 Financials
3 Industry Overview
4 Business Ver=cals
5 Corporate Social Responsibility & Rewards / Recogni=on
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Mission, Vision and Values
Mission: Development of Society through Leadership, Entrepreneurship, Ownership
Vision: Most Admired Integrated Infrastructure Enterprise
Values: Integrity
Humility & Respect
Achievement Drive Accountability
Continuous Learning
Teamwork Organization before Self
Positive Attitude P|3
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India’s largest Integrated Power Developer
Infrastructure Property Development
Subsidiaries / Affiliates
Lanco Power Natural Resources Solar
Lanco Infratech Limited (LITL) (EPC & Construc=on)
• All businesses of the group are under LITL, the listed Holdco of the group, with Promoters’ Holding ~ 71% • Adj. Net Worth (including Minority) ~ US $ 204 Mn as against a peak of US $ 1.25 Bn as on 31.03.2012 • Power projects of 8,101 MW in 12 states of India (3,465 MW under opera[on & 4,636 MW under construc[on)
Thermal Hydro Roads Lanco Hills EPC
Genera=on
Manufacturing
All Coal and Gas based SPVs
All Hydro based SPVs
Assumed US$ / INR = 60
• Devihalli • Hoskote
• Griffin • Tasra
Coal
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Pan India Presence
Chitradurga (3MW)
Tanjore power (120 MW)
Amarkantak – I & II( 600 MW) Amarkantak – III & IV (1320 MW)
Kondapalli (1476 MW)
Teesta(500 MW)
Mandakini(76 MW)
Anpara(1200 MW)
Babandh ( 1320 MW)
Lanco Hills
Plants under construc[on
Plants under opera[on
Plants under construc[on
Plants under opera[on
Plants under construc[on
Plants under opera[on
Property development
Road development
LHPL (10 MW)
LTPL(10 MW)
81 km Bangalore – Hoskote – Mudbagal 82 km Neelamangla – Devihalli
Coal Based
Hydro
Gas
Wind
Registered office
Corporate Office
Hyderabad
Gurgaon
Coal mine
Vidarbha (1320 MW)
Plants under opera[on
Solar
Solar Power Plants
Manufacturing at Rajnandgaon‐ Chhacsgarh Gujarat Solar (35 MW)
Rajasthan Solar(11 MW)
Tasra mine
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Experienced Management Team
L Madhusudhan Rao Execu[ve Chairman
G Bhaskara Rao Execu&ve Vice Chairman
L Sridhar Vice Chairman
G Venkatesh Babu Managing Director
Key Execu=ves
Finance Power
Lanco Group Senior Management Team
T Adi Babu T N Subramanian
Sumeet Kumar
Sanjay Varghese
P Panduranga Rao K Raja Gopal
Resources, EPC & Solar
Rajkumar Roy
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© LANCO Group, All Rights Reserved
Agenda
1 Company Overview
2 Financials
3 Industry Overview
4 Business Ver=cals
5 Corporate Social Responsibility & Rewards / Recogni=on
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60 58 89
157 114
‐178
‐381 ‐344
1
‐232
77 72
154 203
230
39
‐124 ‐84
73
‐94
‐500
‐400
‐300
‐200
‐100
0
100
200
300
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M Dec'16
Adj PAT ‐ Reported PAT+ Profit Eliminated
Cash Profit ‐ PAT + Deprecia[on + Forex Loss / (Gain) + Profit Eliminated
Financials – P&L
Note: 1. Assumed US$ / INR =60 2. Mn indicate million
* Revenue : Before intersegment revenue elimina[on
US$ Mn
* * FY 16 Revenue does not include UPCL
Revenue & EBIDTA
Adjusted PAT & Cash Profit
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552
1,021
1,598
1,884
2,566 2,549
1,813 1,614 1,667
1,026
25% 16%
19%
23%
17% 18% 17% 20%
30%
21%
‐
500
1,000
1,500
2,000
2,500
3,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M Dec'16 15%
18%
21%
24%
27%
30%
33%
Revenue EBIDTA %
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145
190
366
277 268
109 101
144 125 123
‐
50
100
150
200
250
300
350
400
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M Dec'16
726 1,065 1,348
2,935
5,901 6,470 6,813
7,202 7,762
8,316
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M Dec'16
Financials – Balance Sheet
* Fixed Assets : Gross Block + CWIP
Note: 1. Assumed US$ / INR = 60
US$ Mn
Fixed Assets
Cash & Cash Equivalent
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Agenda
1 Company Overview
2 Financials
3 Industry Overview
4 Business Ver=cals
5 Corporate Social Responsibility & Rewards / Recogni=on
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1010
4074
0
1000
2000
3000
4000
5000
India China
Strong Infrastructure Push to drive GDP Growth XII Plan (FY13‐FY17) spending on Infrastructure – US $ 939 Bn
(of which Construc=on Opportunity ~ US $ 445 Bn)
Source: World Bank Data & CEA
Per capita consump=on of electricity (2015)
Installed Power Capacity Growth (GW) – Excluding Renewables
Source: CEA (*Till Oct 2016)
Among BRIC countries, India’s per capita consump=on of electricity is the lowest. China’s per capita consump=on of power is 4.92x of India.
In order to achieve 8% growth, India should anain at least 7% growth in power sector.
USD / INR = Rs. 60
303
161 157
87
20
84 42 33
14 24 9 0
50
100
150
200
250
300
350
Spending in 12th Plan
EPC Opportunity
Source: Planning Commission , EY – EPC ‐ Making India Brick by Brick
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121 124 132 143 148
159 174
200
223 243
268
298 307
100
150
200
250
300
350
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17*
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Coal Gas Diesel Total
State 64 7 0 72 ‐ 29 2 103 33%Private 72 11 0 83 ‐ 3 48 135 43%Central 52 7 ‐ 59 6 12 0 77 24%Total 188 25 1 215 6 44 50 315 100%% age 60% 8% 0% 68% 2% 14% 16% 100%
Ownership Grand Total % ageThermal
Nuclear Hydro RES (MNRE)
As on 31 Jan 2017
Source: CEA & www.ibef.org
Installed Capacity (GW)
Contribu[on of Private Coal based IPPs in last 5 years is more than 45% (56 GW / 124 GW)
2015‐16 Indian per‐capita Consump[on is 1075 kWh against World average of 3026 kWh
GDP growth projected to be in the range of 8% for next 5 years
Addi[onal Energy demand drivers: Make in India, 100% Village Electrifica[on (> 9000 to be electrified Villages), 24x7 Power Supply by 2019, 100 Smart Ci[es, etc.,
Sector Over View: Power
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79 87 42 38 24
14 12
6 7 5
0
50
100
0
5
10
15
FY 12 FY 13 FY 14 FY 15 FY 16 Energy Defi
cit (BU
)
Peak Deffi
cit (GW
)
Peak and Energy Deficit
Energy Deficit Peak Deficit
631 672
717 734
779 819
884 914
957 1010
1075
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Per Capita Consump=on Growth (Units)
Per capita consump=on of electricity ~ growing at brisk pace
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Natural Resources (Coal)
Coal will con[nue to have a dominant share in India’s energy mix
Per Capita electricity consump[on grew at CAGR of 10% between FY‐06 & FY‐16
Imports of coal are expected to almost triple between 2011‐12 and 2021‐22
Domes[c coal Produc[on Target of 1 bn Tonne by 2020 against 597 MT in 2015‐16
Demand from power sector is expected to form 75% of the total coal demand of 980 million tons projected in 2016‐17
Percentage Share of each fuel in India’s commercial energy produc=on
Securing coal: a need; an opportunity
Source: Open Government Data (OGD) Plaqorm India P|13
66% 71% 69% 68% 67%
16% 13%
12% 9%
7%
12% 11% 13%
15% 16%
3% 4% 3%
3% 3%
2% 2% 2%
4% 5%
0% 0% 2% 2% 3%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2000‐01 (Actual) 2006‐07 (Actual) 2011‐12 (Actual) 2016‐17 (Provisional) 2021‐22 (Projected)
Coal & Lignite Crude Oil Natural Gas Hydro Power Nuclear Power Renewable Energy
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Solar Scenario Indian
Perspec=v
e
Source: MNRE
JNNSM was launched in January 2010. The target is to add 100 GW solar capacity by 2022. It is split between 60 GW of u[lity scale projects and 40 GW of roosop projects.
JNNSM target revised to 100GW by 2020
India’s current solar power installed capacity is 8875 MW (0.7% of the es[mated poten[al)
Solar radia[on is high 4.5‐5.5 kWh/m2 in most of the regions (>300 days of Sunshine)
Glob
al Scena
rio (G
W)
Huge untapped Renewable Energy poten=al is available in India
• India has Solar Power Poten=al of : 750 GW
• State wise break up is :
(i) Rajasthan – 142 (ii) Jammu & Kashmir – 110 (iii) Madhya Pradesh – 60 (iv) Maharashtra – 60 (v) Gujarat – 36 (vi) Others – 340
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40 75 104 138 179
229 306
389 480
584
704
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Global Solar Market [ll 2020
5 17
32
48
65
83
100
‐ 10 20 30 40 50 60 70 80 90 100 110 120
2016 2017 2018 2019 2020 2021 2022
Solar India Prospects [ll 2022
Source: MNRE
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Agenda
1 Company Overview
2 Financials
3 Industry Overview
4 Business Ver=cals
5 Corporate Social Responsibility & Rewards / Recogni=on
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Lanco Power Business ‐ Project Status Update
Plant Fuel Capacity (MW) Ooake Anpara Coal 1,200 PPA Kondapalli I Gas 368 PPA Kondapalli II Gas 366 Short Term Kondapalli III Gas 742 Short Term Amarkantak I Coal 300 PPA Amarkantak II Coal 300 PPA Tanjore Gas 120 PPA Other Renewable Wind, Solar, Hydro 69 PPA Total 3,465
Power Projects under Opera=on
Plant Fuel Financial closure Capacity (MW)
Es=mated comple=on
Lanco Mandakini Hydro Y 76 FY 17
Teesta Hydro Y 500 FY 18
Amarkantak III & IV Coal Y 1,320 FY 17
Vidarbha Coal Y 1,320 FY 19
Babandh Coal Y 1,320 FY 18
Solar Solar Y 100 FY 17
Total 4,636
Power Projects under Construc=on
46% 52%
2% Fuel Diversification
Gas Coal Renewables including Hydro
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Presence Across Value Chain De‐risking the Power Business
Fuel (Coal mining) In House EPC Genera=on and O&M Trading
• Griffin coal, Collie region in Western Australia, currently produces 3 MTPA with resources of 1.04 bn
• Selected as MDO by SAIL for Tasra Open Cast mine with geological reserves of approximately 250 mn tons i n Jha rkhand . Includes development of a cap[ve power plant as well.
• Completed projects with capacity of 4,610 MW
• 4,636 MW projects under construc[on
• S t r o n g e n g i n e e r i n g capability
• O v e r 1 0 y e a r s o f experience in design and development of Power Projects
• Handles global suppliers selec[on and sourcing of diverse materials like high‐p r e s s u r e f a b r i c a t e d e q u i p m e n t , s k i d s , i n s t r u m e n t a [ o n & electrical systems
• Opera[ng capac i ty o f 3,465MW
• 4,636 MW projects under construc[on.
• One of largest private sector players in Indian power trading market
Transmission and Distribu=on
• S t r a t e g y i n c l u d e s possible expansion into t r a n s m i s s i o n a n d distribu[on
Integrated presence across value chain capturing value addi=on across the businesses
Type MW
Thermal & Gas 3,396
Renewable (Hydro, Solar, Wind)
69
TOTAL 3.465
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2,170 1,719
4,286
5,021 5,117
4,383 4,363 4,677 4,513
4,298
‐
1,000
2,000
3,000
4,000
5,000
6,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M Dec'16
EPC Business: Strong Exper=se in the Power Sector Order Book (USD Mn)
Major Power Plant EPC orders executed External Power Plant EPC orders under execu=on
Kondapalli 1,476 MW Udupi 1,200 MW Anpara 1,200 MW Amarkantak (I & II) 600 MW Budhil 70 MW Mahagenco (Solar) 75 MW
EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal Power (3 x 660 MW) EPC of 250 MW Gas based Power plant in Iraq EPC of Supercri[cal Ennore Thermal Power Project (1*660MW) EPC of 100 MW Solar PV Power Plant in Madhya Pradesh
Also execu[ng a wide range of projects across other infrastructure sectors like Highways, Airports, Transmission and Distribu[on, Water Infrastructure and Heavy Civil Structures.
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Integrated Manufacturing EPC Domes=c Project
Development Opera=ons & Maintenance
Product & Services Group
(PSG)
Opera=onal module line with 175 MW capacity
Secng up 1,800 MT polysilicion facility and 100 MW wafer facility
600 MW Solar Cell line is under planning
Turnkey EPC: Capabili[es to execute PV and Solar Thermal projects
Executed total projects of 245 MW capacity, another 155 MW is under construc=on
One of the largest solar farm development porqolio in India
Opera=onal porpolio of 46 MW PV assets and 100 MW of solar thermal under construc=on
Provides own and third party O&M services
Currently providing services to projects totaling 245 MW
Offers services in the decentralized solar PV retail segment
59 projects completed with total capacity of ~10 MW
Solar Business – Presence across the Value Chain
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Natural Resources (Coal)
Tasra Open Cast Project (SAIL)
• Selected as Mine Developer and Operator (MDO) by Steel Authority of India (SAIL) for Tasra Open Cast Project and development of associated cap[ve power project.
• Located in Jharia coalfield of Dhanbad (Jharkhand) having geological reserves of approximately 250 million tons
• Secng up of coal washery and opera[on of power plant of 200‐300 MW capacity based on the secondary products arising from the proposed Tasra Washery.
Griffin Coal
Largest opera[onal thermal coal mines in Western Australia, with Resource base of 1.2 bn Tonne Strategic loca[on – Bunbury port <100 km from mine
Good connec[vity of rail and port.
Current produc=on :‐ capacity of 4 mtpa of coal.
Expansion : Plans to ramp up produc[on to a max of 15 MTPA by FY 18
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Infrastructure Business – Leveraging Construc=on Exper=se to Build Infrastructure
Lanco has moved into selec=ve infrastructure projects to leverage its EPC experience
Awarded two Na=onal highway projects in Karnataka
i. 81 km stretch connec[ng Bangalore – Hoskote – Mudbagal
ii. 82 km stretch connec[ng Neelamangla – Devihalli
Concession periods of 20 years and 25 years respec[vely during which toll will be collected
Capex of USD $ 308 mn
Grant from NHAI USD $ 60 mn
COD of Devihalli anained on June 25th 2012 and toll collec[on started
COD of Hoskote anained on December 20th 2013 and toll collec[on started
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Property Development Business Lanco Hills is the group’s foray into property development, located in Hyderabad, spread over 100 acres and comprises residen=al space, office space and IT SEZ
Lanco Hills
Residen=al • Consists of High Rise Apartments and Condominiums • In addi[on to high rise towers, 56 Villas are also under construc[on • Total 7.7 Million Square Feet of built up area
Office space
Property Development is restricted to Hyderabad only
• The Lanco Offices zone offers 6.01 million square feet of built‐up area, which includes premium workspace with both SEZ and non‐SEZ zones
• Offices at Lanco Hills can accommodate over 75000 working professionals and has a spacious 12,000 car park facility
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We care for the world we live in
Lanco Foundation
• Member of the UN Global Compact
• Operating in 10 Indian States at 12 locations
• Covering 155 villages & 240,000 population beneficiaries
• we have a number of initiatives in place that help us to make a difference…
• Focused work in the areas of:
Disability
Education
Safe Drinking water
Mobile Health Services
Support of traditional arts & crafts
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Recent Awards Lanco Anpara Power received 5 Star Rating by British Council
8th Construction World- Annual Award for “Fastest Growing Construction Company”
Lanco Infratech Ltd received PRSI Golden Jubilee Award for the “Most Impressive Public Relations Initiatives”
Lanco Tanjore Power received British Sword of Honour Award for “HSE and 5 Star Rating” by British Council
Lanco Amarkantak wins “Greentech Safety Award 2013” in Gold category in Thermal Power sector
Lanco Anpara wins “Power Line Award” for the Best Thermal Project
Lanco Amarkantak wins “Golden Peacock Occupational Health & Safety Award” for the Year 2013
Lanco Solar Wins “IESA Award For Most Innovative Product” for 2012
Lanco Kondapalli Wins “Energy Conservation Award at both state and national level by NREDCAP ” in December 2013
Lanco Tanjore Power received TERI Corporate Award for “Environmental Excellence and Corporate Social Responsibility”
IKU II received IEEMA award for “Excellence in Fast Track Commissioning of Small Hydro Projects”
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Disclaimer
No representa[on or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the informa[on or opinions contained in this presenta[on. Such informa[on and opinions are in all events not current aser the date of this presenta[on. Certain statements made in this presenta[on may not be based on historical informa[on or facts and may be "forward looking statements" based on the currently held beliefs and assump[ons of the management of the Company, which are expressed in good faith and in their opinion reasonable, including those rela[ng to the Company's general business plans and strategy, its future financial condi[on and growth prospects and future developments in its industry and its compe[[ve and regulatory environment. Forward‐looking statements involve known and unknown risks, uncertain[es and other factors, which may cause the actual results, financial condi[on, performance or achievements of the Company or industry results to differ materially from the results, financial condi[on, performance or achievements expressed or implied by such forward‐looking statements, including future changes or developments in the Company's business, its compe[[ve environment and poli[cal, economic, legal and social condi[ons. Further, past performance is not necessarily indica[ve of future results. Given these risks, uncertain[es and other factors, viewers of this presenta[on are cau[oned not to place undue reliance on these forward‐looking statements. The Company disclaims any obliga[on to update these forward‐looking statements to reflect future events or developments. This presenta[on is for general informa[on purposes only, without regard to any specific objec[ves, financial situa[ons or informa[onal needs of any par[cular person. This presenta[on does not cons[tute an offer or invita[on to purchase or subscribe for any securi[es of the Company by any person in any jurisdic[on, including India and the United States. No part of it should form the basis of or be relied upon in connec[on with any investment decision or any contract or commitment to purchase or subscribe for any securi[es. The Company may alter, modify or otherwise change in any manner the content of this presenta[on, without obliga[on to no[fy any person of such change or changes. This presenta[on may not be copied or disseminated in any manner.
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