Investor Presentation - Punj Lloyd Presentation ... • Hydrocracker Unit & Hydrogen Generation...

Aug 2011

Investor Presentation


Disclaimer

• This presentation is for information purpose only and does not constitute an offer, solicitation or advertisementwith respect to the purchase or sale of any security of Punj Lloyd (the “Company”) and no part of it shall formthe basis of or be relied upon in connection with any contract or commitment whatsoever.

• This presentation is not a complete description of the Company. Certain statements in the presentation and, ifapplicable, the subsequent question and answer session and discussions concerning the Company‟s futuregrowth prospects contain words or phrases that are forward looking statements. All forward looking statementsare subject to risks, uncertainties and assumptions that could cause actual results to differ materially from thosecontemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutesa judgment as of the date of this presentation, and there can be no assurance that future results or events willbe consistent with any such opinion, estimate or projection. The information in this presentation is subject tochange without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may notcontain all material information concerning the Company. We do not have any obligation to, and do not intendto, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not cometo fruition.

• All information contained in this presentation has been prepared solely by the Company. No informationcontained herein has been independently verified by anyone else. No representation or warranty (express orimplied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to thetruthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed orimplied) or omissions in this presentation. Neither the Company nor anyone else accepts any liabilitywhatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents orotherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed,shared, or disseminated in any other manner.

2


Content

Page No

Group & Company Overview 4 – 7

Management & Organisational Structure 8 – 9

Global Presence & Major Breakthroughs 10 – 12

Major Projects & Service Offerings 13 – 16

Marquee Client Base 17

Financial Position & Market Summary 18 – 21

Industry Overview 22 – 31

Awards & Accolades 32 – 33

Business Strategy & Future Outlook 34

3


Punj Lloyd – The Group

• Energy– Oil & Gas – Offshore Platform, Onshore

Field Development, Pipelines, Tankage

and Terminals, Process Plants,

– Power : Thermal, Nuclear

– Renewables : Non–conventional Power,

Bio Fuels, Green Buildings &

Infrastructure and Water

• Infrastructure– Transport :Subways & Metro Systems,

Airports, Highways & Expressways,

Tunnels & Caverns, Seaports &

Terminals, Bridges, Flyovers &

Interchanges

– Utilities : Reservoirs & Treatment Plants

– Building : Hospitality & Leisure,

Commercial, Industrial, Institutional,

Residential Complexes, Healthcare &

Townships & Industrial Parks

• Defence– Land Systems, Aviation and Defence

Electronics

• Onshore Drilling

• Polymers, Petrochemicals & Chemicals

• Equity Investment in Various Business

– Civil Infrastructure & Transportation –

MRT Stations, Roads, Bridges,

Airports,

Expressways, Jetties, Residential &

Commercial Building, Leisure &

Hospitality

– Environment – Water and Wastewater

Treatment plants & Sewage Treatment

Plants, Reservoir, Tunnel & Caverns

– Power Plants

– Coal Mining & Commercial Real Estate

Development

– Oil & Gas

– Petrochemicals, Chemicals & Fertilizers

– Power : Nuclear & Thermal

– Automotive & Aerospace

Sembawang Engineers &

Construction Pte Ltd

PL

Engineering

Punj Lloyd Ltd

4

Punj Lloyd Limited

(A Diversified Global EPC Conglomerate) Sembawang Engineers & Constructors Pte Ltd

(One of the leading EPC Co. in Singapore)

PL Engineering Limited

(An Engineering Services Co.)


Punj Lloyd Ltd

Overview

• Providing services in Energy, Infrastructure, Defence and Petrochemicals Sectors

• Presence in 20 countries across South East Asia (Singapore, Hong Kong, Indonesia, Thailand etc)

South Asia, Middle East & Africa etc.

• Rich multicultural manpower from different nationalities

• International clients includes Government, Major Oil & Gas Companies, Power Developers & big

Private sector Companies

• Equipment Assets worth US $ 400 million

• Declared „Infrastructure Company of the Year‟ at Essar Steel Infrastructure Awards 2010 in

association with CNBC TV 18

• Dedicated Defence Manufacturing Facility at Malanpur, near Gwalior in Madhya Pradesh

• Floated “Infrastructure development” arm of the group by the name of “Punj Lloyd Infrastructure

Ltd”, as 100% subsidiary, with focus on Road Projects (PPP/ BOP) & Solar Power

• Strategic Equity Investments in Businesses – Security Services, Insulation, Health Care & Airline

MRO (Maintenance, Repair & Operations)

• Maintain high standards of Health, Safety, Environment, Quality & Security

5


Sembawang Engineers and Constructors Pte Ltd – (SEC)

• Acquired by Punj Lloyd in June 2006 and headquartered in Singapore

• Over 29 years of professional excellence in Civil Infrastructure & Buildings, Utilities, Transportation,

Environmental & Power sectors.

• Fulcrum of activities centering around Project delivery and Project development underwriting.

• In Project delivery underwriting, one of the leading EPC company in Singapore

• having operations across Singapore, Hong Kong, Indonesia etc

• Have taken diverse spectrum of complex projects in specialized area of mega infrastructure,

high rise building & utility work

• Expended into project development underwriting (Coal Mining & Commercial Real Estate etc) to

enhance competitiveness improve value-adds and to diversify revenue base.

• Revenues as on March 31, 2010 – S$ 325 million & Order backlog as on December 2010–S$ 893

million.

• Employee strength of 468

• Only Construction Co. to have been awarded the main construction contract for both integrated

resorts in Singapore – The Resorts at Sentosa & the Marina Bay Sands (MBS).

• 1st Local contractor to win more than S$ 1 billion orders in a single year.

• Acquired certificates of ISO 9001, ISO 14001 and OHSAS 18001 for quality, environmental and

safety, respectively

6

Overview


PL Engineering Ltd

7

Overview

PL Engineering, a subsidiary of Punj Lloyd and headquartered in Gurgaon, India, is a multi-disciplinary

Design and Engineering Company.

• Engineering services for Oil & Gas, Petrochemical/ Chemical, Power (Thermal & Nuclear),

Infrastructure, Polysilicon, Automotive & Aerospace industry

• Complete offering from Concept to Commissioning

• Pre–Bid Engineering

• FEED (Front End Engineering Design)

• Detailed Design & Engineering

• Engineering support during Procurement/ Construction

• Works as captive for Group companies as well as serves Global Clients

• Offices in India, Middle East, UK & South East Asia

• One of the few Engineering Company qualified by Department of Atomic Energy, India for doing

engineering for Nuclear Power Plant

• More than 750 people

• ISO 9001 certified


Professional and Experienced Management

LUV CHHABRADirector – Corporate Affairs

ATUL PUNJChairman

Awarded „First Generation

Entrepreneur of the Year 2008‟

by CNBC TV 18

P.K. GUPTADirector – India & SEA

NITEN MALHANManaging Director

Warburg Pincus

DR. NARESH KUMAR TREHANChairman

Medanta

SANJAY GOPAL BHATNAGARCEO,

WaterHealth International (WHI)

BOARD OF DIRECTORS OTHER KEY MANAGEMENT PERSONNEL

SANJAY GOEL

CEO – PL Engineering

RIC GROSVENORPresident & CEO

Sembawang E & C

RAVINDRA KANSALPresident & CEO -

Middle East, Africa & CIS

PARDEEP TANDONPresident & CEO – Buildings &

Infrastructure (ME & Africa)

ATUL KUMAR JAINPresident & CEO -

Middle East Africa & CIS

SIDHARATH TULIGroup President -

Human Resource

S S RAJUPresident & CEO -

Infrastructure, India

SHIVENDRA KUMARPresident & Head

Energy – South Asia

V P SHARMAPresident – Offshore

PREDEEP K GUPTAPresident – F & A

DINESH THAIRANIGroup Head

Legal & Inter Audit,

Company Secretary

ANIL JAINHead – Investor Relations

INDEPENDENT DIRECTORS

PHIROZ VANDREVALAExecutive Director,

Tata Consultancy Services

MS EKATERINA SHARASHIDZE

Ex. Minister of Economic

Development, Govt. of Georgia

NON –INDEPENDENT NON EXECUTIVE DIRECTOR

8

MITHLESH SATIJA Chief Risk Officer


9

CASPIAN

PUNJ LLOYD KAZAKHSTAN LLP

ATYRAU

ASIA PACIFIC

PUNJ LLOYD PTE LTD

SINGAPORE

REGIONAL HEADQUARTERS

MIDDLE EAST

PUNJ LLOYD LTD

ABU DHABI

SOUTH ASIA

PUNJ LLOYD LTD

GURGAON

EUROPE

PUNJ LLOYD LTD

UK

AFRICA

PUNJ LLOYD LTD

LIBYA

SUBSIDIARIES

PUNJ LLOYD INFRASTUCTURE

LTD

INDIA

PUNJ LLOYD DELTA

RENEWABLES PVT. LTD

INDIA

PUNJ LLOYD UPSTREAM

LTD, INDIA

SEMBAWANG ENGINEERS &

CONSTRUCTORS PTE LTD

SINGAPORE

PL ENGINEERING LTD

INDIA

DAYIM PUNJ LLOYD

CONSTRUCTION

CONTRACTING CO LTD

SAUDI ARABIA

JOINT VENTURE COMPANIES

KAEFER PUNJ LLOYD LTD

INDIA

THIRUVANANTHAPURAM ROAD

DEVELOPMENT COMPANY LTD,

INDIA

Organisational Structure


Global Presence – The Group

INDIA UK

BAHRAIN

TURKMENISTAN

KAZAKHSTAN

OMAN

LIBYA

SINGAPORE

HONG KONG

THAILAND

INDONESIA

MALAYSIA

VIETNAM

CHINA

UAE

SAUDI ARABIA

QATAR

YEMENIRAN

IRAQ

10


Journey & Major Milestones – The Group

Construction

Construction

and

Management

Procurement

and

Fabrication

Engineering

and

Design

Moving up the

construction value chain

with a broadened

geographic footprint and

service offering

201020092008200720062005200420021999199719941993

1st EPC contract

in oil & gas sector

Large Diameter

gas pipeline

contract by GAIL

1983 1992 1995 1996 1998

1st overseas

pipeline contract

in swamp &

shallow water

1st highway

construction

project

1st Thermal

power project

5 Refinery

Projects

(including two

EPC Refinery

Projects)

1st LNG Terminal

Longest stretch

of pipeline

557 km

1st

Middle East

contract

1st overseas

contract –

Indonesia

1st

pipeline

project

Entry into

Caspian region

1st Overseas

EPC Pipeline

contract in

Offshore

EPC Storage

Terminal contract

in Asia Pacific

1st LPG

Cryogenic Tank

Project

1st EPC (India)

pipeline contract

in offshore

1st Refinery

Project

Acquired

Sembawang

Engineers &

Constructors Private

Limited

Punj Lloyd

Upstream Ltd

incorporated

World largest single

stream LDPE Plant

in U.K.

Group forays into

Solar Utility space

Opens offices in

Hong Kong,

Turkmenistan and

Thailand

World largest wheat

to Ethanol biofuel

plant in U.K.

11


Major Breakthroughs – The Group

South East Asia‟s most

advanced Underground

Expressway including 9

km tunnelOnly Indian Co.

to be awarded

Pipeline of the century –

BTC pipeline

Constructed Changi‟s

Water Reclamation Plant &

Resorts World at Sentosa

130 years of

experience in

polymers

& petrochemicals

3 LNG Terminals and LPG

tank farms in India and

over 300 tanks globally

Singapore‟s

LRT / MRT

Changi Airport

Terminal Extension

Nuclear > 3 million

engineering man hours

World‟s largest

Wheat based

Bioethanol Plant

All terrain pipeline

specialists,

With over 10,000 km,

larger dia pipelines

Executing Power Projects

for more than 2240 MW

as EPC Contractor (BOP)

12


Offshore Pipelines

• Uran Trombay Oil & Gas Pipeline Projects, India

• Tunu Field Development Phases 4-9, Indonesia

• Panaran Pemping Gas Pipeline, Indonesia

Offshore Platforms

• Heera Redevelopment Offshore Platform, India

• Betara Complex Development Project, Indonesia

• South Utility Platform (TP 11 S / EPSC 5), Indonesia

• Poleng Process Platform, Indonesia, Indonesia

Pipelines, International

• Sabah Sarawak Gas Pipeline, Malaysia

• Strategic Gas Transmission project, Qatar

• Gas Export Pipeline, Oman

• OGC Pipelines, Oman

• EPIC of Doha Urban Pipeline Relocation, Qatar

• EPC for Oil & Gas Export Pipelines, Kazakhstan

• South Sumatra to West Java Gas Pipeline Phase I,

Indonesia

• Asab Gas Development Project Phase II, Abu Dhabi

• Ethane Butene Pipeline, Abu Dhabi

• Baku-Tbilisi-Ceyhan Pipeline, Turkey and Georgia

• KAM Pipeline Project, Kazakhstan

Pipelines, India

• East West Gas Pipeline

• Dahej-Vijaipur Pipeline

• Dabhol-Panvel Pipeline

• Dahej-Uran Pipeline

• Mundra-Delhi Pipeline

• Mangalore-Bangalore Multi-Product Pipeline

• Jamnagar-Loni LPG Pipeline

• Kandla-Bhatinda Multi-Product Pipeline

Refineries/ Offsites & Utilities/ Field Development

• Yemen LNG Project for Utilities & Offsites, Yemen

• Fuel Systems New Doha International Airport, Qatar

• Peciko Field Development Phase 4, Indonesia

• Motor Spirit Quality Upgradation Project, Barauni

Refinery, India

• Hydrocracker Unit & Hydrogen Generation Unit,

Haldia Refinery, India

• Delayed Coker Unit and LPG Merox Block, Vadodara

Refinery, India

• Sulphur Block, Bharat Oman Refinery, India

• Coker Island of DCU, Mangalore Refinery, India

• Shah Gas Gathering Package I, Abu Dhabi

• Huwailah Flowline, Wellheads & Transfer Line

Project, Abu Dhabi

Major Projects & Service Offerings – The Group

Airports

• Terminal extension, runways, hangars and control

towers, to support facilities such as training centers,

freights and cargo terminals, in-flight catering

centers and MRT system for Asia‟s major aviation

hub, the award winning Changi Airport, Singapore

• The greenfield airport project in Sikkim, India

13


Tankage and Terminals

• Offsite & Storage Facilities for Panipat Refinery

• Bulk Liquid Storage & Blending Facility at Meranti &

Jurong, Singapore

• Tank Terminal Project at Pulau Busing Tankstore,

Singapore

• LNG Storage Tank Expansion, Dahej

• Low Storage for Receiving Terminal, Hazira

• LNG Storage and Regasification Terminal, Dabhol

Polymers & Petrochemicals

• EPC for 300 KTPA LDPE Plant, Thailand for PTT

Polyethylene Co

• FEED & EPC for 400 KTPA LDPE Plant, UK

• EPC for 300 KTPA LDPE Plant, Iran

• EPC for 250 KTPA Polystyrene Plant, Iran

• 400 KTPA LDPE Plant, China

• 226,000 TPA LDPE Project, Jubail, Saudi Arabia

• EPC of Polyurethane Plant, Seraya, Jurong Island,

Singapore

• EPCM for 70,000 MTPY PA Plant, China

Renewables

• Commissioned World‟s largest wheat based ethanol

plant in the UK

• Five prestigious turnkey solar power projects from

Punjab Government

• India‟s largest solar based EPC project in Bihar

implementation of 850 Solar-Powered Water

Treatment Plants

Thermal

• EPC 3 x 700 MW Power Plant - BOP Components,

erection of Turbine & Generator and Coal and Ash

Handling Plants, Malaysia

• EPC High Pressure piping system for 150 MW Paka

Power Plant, Malaysia

• 2 x 270 MW Thermal Power Station, Dhariwal

Infrastructure, Maharashtra, India

• 2 x 250 MW Thermal Power Station, Rajasthan Rajya

Vidhyut Utpadan Nigam Ltd., Rajasthan, India

• 6 x 600 MW Thermal Power Plant, SEPCO,

Chhattisgarh, India

• 4 x 250 MW Jindal Power Plant, Chhattisgarh, India

Nuclear

• Upgrade of Britain‟s Submarine Refit Complex at

Devonport

• Nuclear Fuel Reprocessing for Sellafield Facility, UK

for BNFL

• New Fuel Oxide Plant for BNFL, UK

• Vitrification Plant for BNFL, UK

• Rajasthan Atomic Power for Nuclear Power Corp. of

India, India

Commercial Complexes

• Tianjin International Building, China

• The Exchange and Yangtze Plaza, China

• German Centre for Industry & Trade, Singapore


14


Hotels & Resorts

• Marina Bay Sands Integrated Resort‟s, North Podium

comprising the Casino, Theatres and Retail Arcade,

Singapore

• Hotels, Beach Villas, Oceanarium and Water Theme

Park for Resorts World Sentosa, Singapore

Healthcare Facilities & Hospitals

• Medanta, The Medicity, India

• Singapore National Eye Centre, Singapore

• Changi General Hospital Substructure Package,

Singapore

Residential Complexes

• The Jumeirah Islands Villa Project, Dubai

• The Edge on Carnhill, Singapore

Subway & Metro Systems

• Expansion of the existing MRT network including New

Circle Line and DownTown Line in Singapore

• Design and construction of Elevated Viaduct including

structural work of four Stations for Delhi Metro Rail

Corporation, India

• Construction of Eight Stations and Viaduct, Bangalore

Metro Rail Corporation, India

Tunnels & Caverns

• Paya Lebar Tunnel, design and construction of 5.1 km long

by 6.5 m internal diameter by 30 m deep tunnel and 6

shafts, Singapore

• Kranji Tunnel, design and construction of 12.6 km long by

3.6 m internal diameter tunnel and 10 access Shafts,

Singapore

Highways & Expressways

• Upgradation of the Belgaum-Maharashtra Border Highway

Section of NH-4 in Karnataka, India

• Construction of National Highway No 9, GMR Hyderabad

Vijayawada Expressways, India

• Projects for the Golden Quadrilateral including East West

and North South Corridors, India

• Singapore Kallang-Paya Lebar Expressway, Singapore

• Tunnel Structure Linking East Coast Parkway with Nicoll

Highway, Singapore

• Vadodra-Halol Tollway, India

Seaports & Terminals

• Pulau Seraya Oil Tanking Terminal, Singapore

• Finger Pier Extension, Singapore

Bridges, Flyovers & Interchanges

• Construction of 330 m causeway to Pulau Brani and a

280 m long bridge to Sentosa, Singapore

• Construction of interchange at junction of Seletar/

Central Expressway/Yio Chu Kang Road, Singapore


15


Superior Execution Capabilities – Key Differentiators

Shorter Execution Cycle

An established track record for successful

completion of projects within tight schedules, in India

& International markets

Reputation for undertaking highly challenging

engineering and construction projects

• 506 km 42” dia Dahej – Vijaipur Gas pipeline

which was completed within a span of 9 months

• Lowering of 21 km of 48” dia gas pipeline project

at Oman in a single day.

Risk Management

Information Technology

3 Tier risk management process is followed

• Identification of risk covering entire business and

project life cycle

• Developing risk mitigation strategies in terms of

early detection of risks & timely implementation of

counter measures

• Monitoring the process by way of various

exceptional reporting and its analysis

Evaluation of risks in terms of rewards & risk

tolerance before any decision making

Optimal resource utilization through Oracle ERP

“Bid Decision” system for efficient project bidding

process

Best of breed project management solutions

Cost efficiencies and controls through eSourcing &

Reverse Auctions

Satellite technology used to ensure real time flow of

information from project sites

Equipment

Own large Fleet and wide variety of sophisticated

construction equipment including 56” wide pipe

laying equipment and Barges.

Equipment fleet of over 13000 items in 200

categories valued at USD 400 Million

Central Workshop at Gwalior with modern facilities

and dedicated, trained & professional staff to

repair/overhaul all the equipment in–house.

Enterprise Asset Management which is part of

Oracle ERP, software to manage all equipment

across its sites all over the world.

16


Marquee Client Base

17

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` Cr.

Consolidated Financial Position

18

S. N Particulars FY07 FY08 FY09 FY10 FY11

1 Net sales & Contract Revenue 5,127 7,753 11,876 10,448 7,850

2 Other Income (excl Interest Income) 49 90 116 414 317

3 Total Sales & Contract Reveue (1+2) 5,176 7,843 11,992 10,862 8,167

4 Total expenditure 4,752 7,112 11,608 10,320 7,546

5 EBIDTA (3-4) 424 731 384 542 621

6 Interest Expense 83 129 216 307 357

7 Interest Income 30 28 10 13 21

8 Depreciation 106 147 177 227 269

9 PBT (5-6+7-8) 265 483 1 21 16

10 Tax 69 123 226 137 66

11 PAT (9-10) 196 360 (225) (116) (50)

12 Cash Profit (8+11) 302 507 (48) 111 219

13 Equity Share Capital 52 61 61 66 66

14 Networth 1,279 2,743 2,485 3,028 2,984

Ratios

1 EBIDTA as % of Sales (5/1) 8.2% 9.3% 3.2% 5.0% 7.6%

2 ROCE 12.9% 15.1% 5.8% 7.6% 6.2%

3 Basic EPS (`) 7.54 12.65 (7.42) (3.37) (1.54)

4 DPS (`) 0.30 0.40 0.30 0.15 0.15

5 Book value per Share (`) 48.9 90.4 81.9 91.2 89.9

6 Net Debt to Equity (Times) 0.54 0.33 1.11 1.27 1.12

7 Current Ratio 1.52 1.70 1.69 2.30 2.11


Contract Revenue by Region / Segments

For FY 2011

By Geography

Diversified geographical mix

By Business Segment

Operations across multiple segments

For FY 2011

19


Shareholding Pattern & Market Summary

20

FIIs10% MFs /

Banks

13%

Promoters Group37%

Public40%

IPO January 2006

Stock Split

(FV ` 10/– to FV ` 2/–)April 2007

BSE Code 532693

NSE Code PUNJLLOYD

NSDL / CDSL – ISIN INE701B01021

Bloomberg Code PUNJ:IN

Reuters Code PUJL.BO

As on June 30, 2011


Consolidated Annual Operational Results

5,176

7,843

11,992 10,862

8,167

12.89%

15.15%

5.80%

7.61%6.24%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2000

4000

6000

8000

10000

12000

14000

FY07 FY08 FY09 FY10 FY11

RO

CE

%

Re

ven

ue

(` C

r.)

Revenue ROCE %

REVENUE

EBITDA

424

731

384

542621

8.19% 9.32%

3.20%

4.99%

7.60%

3%

6%

13%

25%

50%

100%

0

100

200

300

400

500

600

700

800

FY07 FY08 FY09 FY10 FY11

EBIT

DA

Mar

gin

(%

)

EBIT

DA

(`C

r.)

EBITDA EBITDA Margin

21


Industry Overview – India

Engineering construction activity

integral to energy industry,

infrastructure and industrial

development

Industry Characteristics

Dominated by a few industry

majors in Oil & Gas Segment

High barriers to entry

Credibility and experience

provides competitive edge

Industry is witnessing high

growth

1

2

3

4

5

Key Industry Drivers

Highways/

Roads• Huge investment

planned

• GOI Attracting FDI

for infrastructure

projects

• US$ 98 billion

investment required

for roads

Oil• Oil prices leading to

larger investments

in upstream and

downstream

sectors

• Increasing demand

from Asia

Power• Supply shortage

• India has one of

the lowest

electricity

consumption levels

• US$ 251 billion

allocated for Power

Sector in the 12th

plan

Construction

and

Engineering

Demand

Gas• LNG considered as

the fuel of the

future

• Cheapest to

transport through

pipes

Ports• Huge investment

plans

• The number/

capacity of ports

are much less as

compared to cargo

movements.

22


Increased Emphasis on Indian Infrastructure

Average GDP growth rate (2008–12)

Growth in economy will spur requirements for Infrastructure growth

• Increased budgetary allocation for infrastructure projects

• The expected infrastructure investment in the Twelfth Plan is US$ 1 trillion

• World bank is likely to lend $15bn to $20bn to India's Infrastructure Sector

• Efforts to raise funds from multi–lateral financial development institutions

(Source: India Infrastructure Research Magazine)

Fund Allocations in 12th Plan (US$ bn)

(Source: United Nations Statistical Division)

…. Infrastructure spends at less than 5% of GDP

12th plan

23


Huge Investments Required to Meet Power Demand in India

1,700 4,600 13,00028,000

66,000

112,000

212,000

-

50,000

100,000

150,000

200,000

250,000

1950 1960 1970 1980 1990 2005 2012E

(MW

)

• India has been able to achieve an economic growth rate of 8% p.a. during last few years and is poised to achieve

double digit growth rate.

• During the period 2007–12 average economic growth rate has been projected at 9% per annum. To sustain this

economic growth power sector has to also grow by 9%.

• To revamp the Power Sector, number of path breaking initiative have been taken in the recent past, both in terms of

policy pronouncements and programs ranging from bringing about efficiency in generation segment areas and

consolidation of electricity delivery system.

• The present Inter regional capacity is 11,500 MW and projects in hand indicate that this capacity would be enhanced to

30,000 MW by 2012.

Installed Capacity

Largest Investment Opportunities in Power Sector

Per Capita Consumption of Electricity

(Source: Ministry of Power, GOI website)(Source: United Nations Statistical Division)

24


25

Growing Globally Oil, Gas & Energy Demand

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

OECD

North

America

China OECD

Europe

Other Asia Africa RussiaM iddle East OECD

Pacific

Other Latin

America

India Other

Transition

Economies

Brazil

Cu

mu

lati

ve

In

ve

stm

en

t (b

illio

n

do

lla

rs)

0%

5%

10%

15%

20%

25% Sh

are

in G

lob

al In

ve

stm

en

t

Regional Demand

(Million barrels per day)

• Given the latest upward revision in world GDP (grossdomestic product), world oil demand growth is forecastat 1.23 million barrels per day (bpd) averaging 87.3million bpd in 2011, 50,000 bpd higher than last month'sestimate and 89 million bpd by 2014

• Demand for Oil remains resilient in face of high oilprices.

(Source: IEA; Oil Market Report; June 2010)

Major Global Oil Demand Growth 2008–10

Growth Drivers

(Source: International Energy Agency; IEA Working Party on Fossil Fuels; May 2004)

PLL‟s Target Market

Energy Investment by Region 2001–2030

• More than US$ 16 trillion needs to be invested inenergy–supply infrastructure over next three decades

• Oil & Gas Sector would each account for more thanUS$ 3 trillion or around 19% of total investment

• Half of the total investment is expected to take placein developing countries

• India is expected to contribute to expectedexpenditure

Growth Drivers


26

Significant Opportunities in Pipeline Construction across the World

• Total natural gas consumption worldwide increases by 44% in the IEO2010, from 108 trillion cubic feet in 2007 to 156trillion cubic feet in 2035

• Driven by increasing demand for oil and gas, Asia Pacific is expected to witness the largest addition of pipelines in theworld. It is expected to undergo a network addition of North America with 33,320 Km and Europe with 20,350 Kmnetwork.

• Export Pipeline systems will expand to bridge the demand supply gap in mature economies

Pipelines Under Construction/On Drawing Board Large Pipeline additions through 2030

Volumes of Transportation Facilities Expected to Rise Substantially

North America – 28,

099

South/Central America

and Caribbean – 9,869

Africa –

7759

Middle East –

9,345

FSU – Eastern Europe –

18,896

Western Europe and EU Countries

– 4,445

Asia Pacific Region –

41,525

Mileage Totals –

36,304 Under

Construction

83,634 Planned

119,938 Total

(Source: Pipeline & Gas Journal / Goliath : Feb 2010) (Source : Pipeline & Gas Journal – January 2011)


Industry Overview – Singapore

• Singapore‟s total construction demand from

2012 to 2015 is likely to be between S$19

billion and S$26 billion annually

• Transport infrastructure is a major focus

area for government investment program.

• Though power sector opportunity are

limited in Singapore due to matured market,

but EPC companies are likely to witness

demand due to the upgrading or extension

of existing power facilities

%S$ billion

(Source: Building and Construction Authority of Singapore, Department of Statistics, Frost & Sullivan. (1) 2011 values for construction demand are a mean of the range of values forecast for the year.)

Civil

Infrastructure

and Building

• The Singapore government plans to invest around S$60 billion to further expand and double the

country‟s existing MRT network to 278km by 2020

• [S$300 million – S$400 million] is earmarked for the development of expressways annually

Environmental

• The water sector has been identified as one of the key growth areas and its contribution to

Singapore‟s GDP is expected to increase from S$500 million in 2003 to S$1.7 billion in 2015 at a rate

of more than 10%

Property

• Total retail sales to increase by 9.2% from S$42.5 billion in 2011 to S$46.4 billion in 2014

− This steady growth translates into increasing demand for retail buildings and a significant

opportunity for EPC companies and investors

Industrial and

Process

• The growth of the petroleum, chemicals and pharmaceutical industries are likely to catalyze a new

wave of high–value downstream investments in Singapore's chemical industry which will generate

significant opportunities for EPC companies

27


28

Industry Overview – Hong Kong

• GDP of Hong Kong is expected to grow

around 8% in 2010

• Services are the major part of GDP

contributing nearly 90%

• Major investments planned in Inland and

Cross-boundary rail transportation

– HKD 110 billion of contracts awarded in last 5

years for development of existing MTR

commuter network

– Nearly HKD 12 billion contracts awarded for

Harbour Area Treatment Scheme

– Several contracts for Sewerage treatment

awarded

• Major projects announced in 5 year plan

announced in 2011

– Guangzhou-Shenzhen-Hong Kong Express rail

link

– Hong Kong-Shenzhen western express line

– Hong Kong-Zhuhai-Macao Bridge

– Development of Qianhai New District,

Schenzhen

– Development of Nansha New District,

Guangzhou

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

r

Mill

ion

HK

D (

curr

en

t m

arke

t p

rice

s)

Hong Kong GDP

(Source: Census & Statistics Department, Government of Hong Kong)

(Source: Highways Department, Government of Hong Kong)


29

Retail Property and Construction Outlook – China

• Future growth is expected from tier-two and tier-

three cities given higher GDP growth and low

construction per capita

• Increasing trend of relocation to tier-two and tier-

three cities due to increasing costs of living and

doing business in tier-one cities

• Increasing requirements for large-scale retail

malls due to:

• Increasing urbanization

• Rising disposable income

• Aspirational lifestyle of the Chinese consumers

• Regulatory environment

• Funding is difficult due to current restrictive

monetary policies

• Access to low-cost funding provides competitive

advantage

• Attractive opportunity for both local Chinese and

foreign developers

• Expected strong growth in the retail malls sector

• Lower operating costs in tier-two and tier-three

cities

• Top companies are state-owned enterprises

• Foreign companies generally seek out mutually

beneficial arrangements with local companies:

the foreign company gets access to the high-

growth Chinese market, while the local

companies benefit from learning about new

construction technologies and techniques

Significant

growth

potential in

tier-two

and tier-

three cities

Growth in Disposable Income per Capita

Construction Per Capital (RMB), 2004 - 08

(Source: Frost & Sullivan, National Bureau of Statistics of China)


30

Industry Overview – Africa• $ 1.6 trillion – Africa‟s GDP in 2008 (roughly equal to

Russia‟s or Brazil‟s)

• The economy grew @ 5% for the last 10 years making it the

world‟s 3rd largest growing region

• Improving political stability – A positive for new investments

• Infrastructure is seen as key bottleneck to economic growth

in the region

• Infrastructure is expected to grow @ 9% in the next 10 years

• Current African spending is about $72 Billion

• China is leading the infrastructure development in Africa with

a total of $15 billion investments during 5 years (2003-2007)

(Source: Lions on the move: The progress and potential of African economies, Mckinsey

Global Institute report)


31

• Abundant availability of OiI & Gas to drive Exploration

& Production activity

• Proven oil reserves of 127.7 billion barrels about 10%

of global proven reserves

• Oil production of about 10 million barrels per day

• 521 trillion cubic feet of Natural gas proven reserves

(about 8% of global proven reserves)

(Source: Statistical review of world energy 2010, British Petroleum report).

Table: Oil – Production & Reserves in Sub-Saharan African Countries

Oil & Gas supply & Infrastructure in Sub-Saharan African Countries

Increasing Global demand for Oil and gas

coupled with rising prices have led to

significant increase in investments in African

Oil & Gas assets and will continue to drive

growth in future

Africa – Oil & Gas


Awards & Accolades – PLL

32

PUNJ LLOYD GROUP

• Ranked no. 58 under international contractors category by ENR.com in 2010

• Ranked no. 104 under global contractors category by ENR.com in 2010

• Infrastructure Company of the Year – 2010 (CNBC/Essar)

• Infrastructure Excellence Award‟ in the Oil & Gas category for the Dahej–Vijaipur Gas Pipeline – 2009

• Chemtech Award – Outstanding contribution to Engineering – 2009

• Dun & Bradstreet – Rolta Corporate Awards 2008

• Best Infrastructure Award NDTV Profit Business Leadership Awards 2008

• Top Indian company „Construction – Infrastructure Development‟

PROJECT EXPORTS PROMOTION COUNCIL OF INDIA

• Maximum Value of Overseas construction and engineering projects contracted for year 2005–2006 / 2007

• Maximum Turnover in Overseas construction contracts for year 2004–2005 / 2006–7

• Maximum Foreign works secured in new areas for Year 2002–03 / 2003–04 / 2004–05

AWAREDED BY GREENTECH FOUNDATION

• 2004 – Safety Award – BTC Pipeline Project

• 2005–06 – Environmental Excellence – Gold

• 2007 – Safety – Gold

• 2008 – Environment Excellence – Platinum – Safety Gold

• 2009 – Environment Excellence – Gold

• 2010 – Safety Award – Gold


2011

2010

2009

Awards & Accolades – SEC

2008

2000

1994

Workplace

Safety and

Health Award

(Silver)

Land Transport

Excellence

Awards

for Safety

Excellence

Category

33


34

Business Strategy and Future Outlook

Expand operations to

other industries and

target high potential

project segments

Continue to expand

operations in India and

internationally

Continue to focus

on health, safety

and environment

standardsDevelop and maintain

strong relationships with

our clients and strategic

partners

Focus on performance,

timely project

execution and

Improvement in debt

leveraging

Further enhance our

engineering and design

capabilities

Continue to focus on

EPC contracts from

clients as well as

contractors


35

Contact Us

ANIL JAINHead – Investor Relations

Punj Lloyd Group

Direct Tel. No.: 91–124– 2620221

E–Mail – [email protected]

RIPUDAMAN SINGH Executive – Investor Relations

Direct Tel No.: 91–124–3393303

E–mail – [email protected]

Corporate Office

Punj Lloyd Ltd

78 Institutional Area

Sector – 32, Gurgaon – 122 001

Tel. No.91–124–2620123

Fax No.91–124–2620111

Website : www.punjlloydgroup.com

Investment & Financial Communication Advisor

GAVIN DESA / SAMEERA KEDAR Citigate Dewe Rogerson

Tel. No.: 91–022– 6645 1237 / 1261

Fax: 91–022–6645 1200

E–Mail – gavin@cdr–india.com / sameera@cdr–india.com

Thank You

mailto:[email protected]


http://www.punjlloydgroup.com/








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