CONFIDENTIAL
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CONFIDENTIAL | MAY 2009
Presentation
by
Jaiprakash Associates Limited
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Disclaimer
This presentation contains statements that constitute “forward looking statements” including, without
limitation, statements relating to the implementation of strategic initiatives, and other statements
relating to the Company’s future business developments and economic performance. All statements
regarding the expected financial condition and results of operations, business, plans and prospects of
the Company are forward-looking statements.
These forward-looking statements include statements as to the Company’s business strategy, the
Company’s revenue and profitability, planned projects and other matters discussed in this
presentation regarding matters that are not historical fact. These forward-looking statements and any
other projections contained in this presentation (whether made by the Company or any third party)
involve known and unknown risks, uncertainties and other factors that may cause the Company’s
actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements or other
projections.
The Company undertakes no obligation to publicly update or revise any of the opinions or forward
looking statements expressed in this presentation as a result of new information, future events or
otherwise.
Exchange Rate: 1 USD = 48 INR
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1. Company Overview
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Corporate Structure (Post Amalgamation)
BOO Power Infrastructure
Jaypee
Infratech
Limited
96.9%
Cement
Himalayan
Expressway
Limited
100%
4.3 MTPA
Joint Ventures
Coal Mining
Joint Ventures
with State Govt.
For 1320 MW
Thermal Power
Jaiprakash Power
Ventures Limited
(400 MW-Hydro – in Operation)
(1320 MW Thermal – Under Implementation)
80.56%
JKHCL (1000 MW
-Karcham
Wangtoo Project
Jaypee
Powergrid
Limited
23%
Arunachal
Projects
(3200MW)
Meghalaya
Projects
(720MW)
Jaiprakash Hydro
Power Limited*
(300 MW - Baspa-II)
63.3%
51%
74%
89%
Jaypee
Ganga Infra.
Corp. Limited
100%
Bina Power
(1250MW)
100%
Cement – 29.2 MTPA
Jaiprakash Associates Limited
E&CReal Estate & Hospitality
Market Cap. (22 May ‘09) - JAL: INR 20,521Crs (US$ 4.27 Bn.); JHPL: INR 2,634 Crs (US$ 549 Mn.);
JHL: INR 929 Crs (US$ 194 Mn.) * Listed Company
(Yamuna Expressway Project)
55.36%
(44.64% held by
JAL)
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2. Infrastructure and Real Estate
a) Leading Infrastructure Company in India
b) 54% share in 10th Five year plan Hydropower
Projects
c) 165 km Expressway connecting Noida to Agra with
400 Million sq feet Real Estate Development
d) 1,047 km Expressway connecting Noida to Ballia
with 3.3 Billion sq feet Real Estate Development
e) Developing South Asia‟s first Formula-1 Circuit
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The Leading Infrastructure Company in India
•BHUTAN
Baghalihar II
450MW
Sardar Sarovar
1,450MW
Karcham-Wangtoo
1,000MW
Alimineti Madhava
Reddy Project (51 Km Long Tunnel)E&C Projects
under
execution
Sidhi – Thermal Power
1320MW (2X660MW)
Yamuna Expressway
165 km
Zirakpur-Parwanoo
Toll road- 27 km
Roads&
Real Estate
Thermal Power
PROUD TO
PARTICIPATE IN:
Largest Concrete Dam
in India – Sardar
Sarovar
Largest Rockfill Dam
in India – Tehri
Largest Underground
Powerhouse in India–
Naptha-Jhakri
Second Largest
Surface Powerhouse
in India – Indira-Sagar
Ganga Expressway at 1,047 km, the largest
infrastructure project in the country at
Rs 60,000 Crs (US$ 12.5 Bn) is to be executed by JAL
Jaypee Greens
Real Estate
Bina Thermal Power 1250
MW (5X250MW)
PARTICIPATION ON EPC/CONTRACT/BOO BASIS TO ADD 8840 MW TO THE NATION
BETWEEN 2002-2008
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AGRA
MATHURA
DISTRICT
AGRA
DISTRICT HATHRAS
SADABAD
DISTRICT MATHURA
TAJ ECONOMIC ZONEDISTRICT ALIGARH
INTERNATIONAL
AIRPORT
HARYANA
CHHATA TAHSIL
GAUTAM BUDH NAGAR
GREATER
NOIDA
NOIDA
5
432
1
Yamuna Expressway Project
NEW DELHI
165 km long 6 Lane Access Controlled Expressway connecting Noida to Agra
Estimated total cost: Rs. 9,739 Crs. (US$ 2.02 Bn.)
Rights to concessionaire for 36 years
Ribbon development of 25 Million Sq Mtrs of land along the Expressway
Five or more locations (one location either Noida or Greater Noida)- 90 year lease
LAND FOR DEVELOPMENT AT 5
LOCATIONS
TOTAL – 6250 ACRES
TO BE DEVELOPED BY JAL
GREATER NOIDA TO AGRA – YAMUNA
EXPRESS TO BE DEVELOPED BY JAL
NOIDA TO GREATER NOIDA EXPRESSWAY
-COMPLETED
LEGEND :
PROPOSED METRO UPTO JEWAR
METRO Currently under Construction up to Noida City Centre
METRO extension proposed to planned Airport in JEWAR
SPORTS SDZ (1000 Ha.)
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Yamuna Expressway - Project Cost & Means of Finance
S.N. Description Rs. Crs
1 Cost of land – Expressway & Structures 900
2 Road Construction Cost 5,300
3 Preliminary, Preoperative & Contigencies 470
4 Interest during Construction 1,350
5 Cost of land – For development 1,719
Total 9,739
S.N. Description Rs. Crs.
1 Equity/ IPO/ Pvt. Placement 2,250
2 Inflows from Real Estate 1,489
3 Senior Debt/Term loan 6,000
Total 9,739
Project Cost
Means of Finance
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Yamuna Expressway – Progress as on 21.05.09
S.N. ActivityTotal Quantity
(Lac Cum)
On 30.03.08
(Lac Cum)%
On 21.05.09
(Lac Cum)%
1 Clearing & Grubbing 1,735 Ha 33.50 Ha* 2% 1093 Ha# 63 %
2Earthwork in
Embankment351.51 5.94 2% 156.33 44 %
3 Fly Ash 27.42 - - 3.28 12 %
4 Structural Concrete
a) Culverts 0.61 0.02 4% 0.19 31 %
b)
Vehicular
Underpasses/CartTrack
Underpasses
1.83 0.04 2% 0.23 13 %
c) Minor Bridges 1.13 - - 0.30 27 %
d) Interchanges 3.84 - - 0.39 10 %
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* Possession On 30.03.08: Land For Expressway 160 Acres
Land For Development 914 Acres
# Possession On 21.05.09: Land for Expressway 3,991 Acres
Land for Development 1,150 Acres
Work is continuing in the entire stretch of 165 km
Amount spent on Yamuna Expressway Project as of 30 Apr „09 – Rs. 3,700 Crs
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JPSK Sports SDZ – 1000 Hectares Development Opportunity
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Promoted by JPSK Sports Pvt. Ltd., a
subsidiary of Jaiprakash Associates Limited.
1,000 Ha Sports Special Development zone,
located 11 km from Zero Point of the
upcoming Yamuna Expressway. Entire land
requirement in place.
Facilities to include a Formula 1 Race Track &
Hockey Stadium with an estimated
investment of Rs. 1,700 Crs
First F-1 Race scheduled in 2011.
Circuit being designed by World
Renowned architect “Hermann Tilke”.
Opportunity to develop 650 Hectares
of Real Estate.
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1,047 Km expressway
35 year concession period
Rights of development of an estimated 30,000 acres of land along the Expressway
3.3 Bn. Sq. Feet Built-up Area
Ganga Expressway Project
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Real Estate Development
Locations Proposed Development
1. Jaypee Greens 8 Mn Sq Ft
2. Yamuna Expressway 400 Mn Sq Ft
3. Ganga Expressway 3.3 Bn Sq Ft
Locations
Total Area Sold
till 30 Apr ‟09
(Mn sq. ft.)
Collections
till 30 Apr ‟09
(In Rs. Crs)
Average
Realization
(Rs. /Sq. ft.)
1. Jaypee Greens 2.90 993 5,500
2. Yamuna Expressway 5.45 1,067 5,024
Total Area Sold in Apr ‟09 3.01 Lac sq. ft.
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3. Power & Energy
a) Largest Private Sector Hydropower Developer
b) Coal Block supported Thermal Power
c) Transmission
d) Presence in Wind Power and Oil & Gas Exploration
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Power Business at a Glance
S.N. Project FuelCapacity
(MW)
Regulated
Tariff (MW)
Merchant
Power
(MW)
VERs/
CERsCOD
1. Baspa-II Hydro 300 300 - 1.00 Mn VERs 2003
2. Vishnuprayag Hydro 400 400 - 1.32 Mn.VERs 2006
3. Karcham Wangtoo Hydro 1000 800 200 3.35 Mn. CERs* 2011*
4. Bina Power Thermal 1250 625* 625* - 2011**
5. Jaypee Nigrie Thermal 1320 660* 660* CERs expected 2012*
6. Karchana Thermal 1980 1320* 660* 1.5 Mn. CERs 2014*
7. Bara Thermal 3300 1980* 1320* 2.5 Mn. CERs 2014*
8. Lower Siang Hydro 2700 1350* 1350* TBD 2015***
9. Hirong Hydro 500 250* 250* TBD 2015*
10. Kynshi Stage -II Hydro 450 225* 225* TBD 2016*
11. Umngot Stage -I Hydro 270 135* 135* TBD 2016*
TOTAL 13470 8045 5425
* Expected
** 500 MW Phase-I by 2011, *** 900 MW Phase-I by 2015
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Power Business – Summary of Project Status
Project Land WaterEnvironment
Clearance
DPR/EPC
OrderFuel PPA
Baspa II – 300 MW PROJECT IN OPERATION
Vishnuprayag –
400MWPROJECT IN OPERATION
Karcham Wangtoo –
1000 MW
20% Merchant
Lower Siang –
2700 MW-
Approval for pre-
constn activities
granted by MOEF
DPR submitted
to CEA 50% Merchant
Hirong –
500 MW- Same as above
Acres of
Canada
appointed for
DPR
preparation
50% Merchant
Bina Power –
1250 MW Being revalidated
GoMP-42%
50 % Merchant
Nigrie Thermal –
1320 MW
65% Acquired.
Balance in
adv. stage of
acquisition
TOR cleared by MOEF
DPR Ready ,
ICB under
review
GoMP – 37.5%
50%Merchant
Karchna Thermal –
1980 MW Applied for 33% Merchant
Bara Thermal –
3300 MW Applied for 38% Merchant
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Hydro Projects Delivering Returns in Excess of 30%
Particulars JHPL JPVL
FY 2008 FY 2009 FY 2008 FY 2009
PAT* (Rs. Crs.) 152.75 149.88 190.55 186.47
Paid Up Capital (Rs. Crs) 491 491 532.5 534.89
ROE 31% 31% 36% 35%
JHPL - Baspa–II HEP Awarded the Gold Shield by the Ministry of Power for
outstanding performance in 2007-08.
JHPL - Baspa – II HEP Accredited for 1 million VER‟s per annum.
JPVL – Vishnuprayag HEP awarded 1st Prize in “Excellence in Fast Track
Power Project Execution – Hydro” in the Indian Electrical and Electronics
Manufacturers Association (IEEMA) Power Awards 2008.
JPVL - Successfully securitized receivables from the Vishnuprayag HEP for
Rs. 1,650 Crs.
JHPL – Baspa – II securitization of receivables is underway. Expected to net
Rs. 1,100 Crores.
* PAT excludes extraordinary items
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4. Prominent Cement Manufacturer
a) Largest player in Central India
b) 24 MTPA capacity by FY 2010 with
• 245 MW captive power
• Captive coal blocks (in MP)
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Year CEMENT (Mn. Tonnes) CAPTIVE
POWER
PLANT
(MW)
Installed
CapacityProduction
FY-08 9.00 6.77 88 MW
FY-09 13.50 7.60 154 MW
FY-10 24.30 13.94 245 MW
FY-11 26.80 23.00 327 MW
FY-12 33.50 30.80 327MW
Installed Capacity & Expected Production by year
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Cement Capacity Rollout by FY-12 (In Mn Tonnes)
Zone Name of Plant Existing FY-10 FY-11 FY-12 Total
Central Zone
Rewa Complex 7.00
13.10UPCP 3.00
Sidhi 2.00
JP Super Dalla 1.10
North Zone
Baga 1.50
7.20
Bagheri(G) 2.00
Panipat(G) 1.50
Roorkee (G) 1.20
Sikanderabad(G) 1.00
West Zone GACL 1.20 1.205.40
Wanakbori(G) 1.50 1.50
East Zone Bhilai JV 2.204.30
Bokaro JV(G) 2.10
South Zone Balaji 3.50 3.50
Total New Capacity 9.60 2.50 6.70
Total (in MTPA) 14.70 24.30 26.80 33.50 33.50 18
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Productivity gains through focus on principal components of cement
cost
Installation of modern pyro processing system in all the new
installations having lower coal consumption
MSW plant at Chandigarh to produce pallets for kiln firing at Baga
Recently allotted Mandla (North) & Mandla (South) Coal Blocks for
Cement business which will become operational from 2011
Expected coal cost at Rs 1600 PMT v/s Rs 2800 PMT at present
Cement Cost (%) Key Measures to Enhance Productivity/Contain Costs
Existing split location grinding/blending plants near the market &
flyash source have resulted in reduced freight cost.
New split location grinding/blending units at Panipat, Bagheri,
Roorkee, & Wanakbori which are close to consumption centres as
well as near source of fly ash
10 MTPA of the new capacity is entitled to various fiscal benefits.
10 year exemption on Sales Tax , Royalty & Electricity Duty on Captive
Thermal Power Plants for 3 MTPA UP Cement Project
10 year exemption on excise duty for 7 MTPA capacity at HP
24%
9%
11%
24%
19%
13%
Existing Captive Thermal Power Plants have reduced the power cost
from Rs 406 PMT in 2001-02 to Rs 293 PMT 2008-09.
Captive Thermal Power Plants installed at all new Cement plants
Cost of generation: Rs 2.75 per unit v/s Rs 4.50 per unit from grid
COAL COST
DISTRIBUTION
COST
TAXES &DUTIES
POWER
RAW
MATERIAL,
FLYASH
OTHERS
67%
100%
CEMENT COST DETERMINANTS
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Cement – Volume Growth Performance
March 09 volumes stood at 7.90 Lac Tonnes
▲ 16 % over March 08.
▲ 15% over Feb 09.
Q4 FY 09 volumes stood at 22.2 Lac Tonnes
▲ 12% over Q4 FY 08.
▲ 17% over Q3 FY 09.
JAL Cement sales have increased by 13 % to 76.46 Lac Tonnes in FY 09.
EBIDTA has increased to Rs. 1,135/ Tonne in Q4 FY 09
95 % Power was supplied by Captive Power Plants
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5. Strong Financial Profile
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Details FY07 FY08Change
in %FY08 FY09
Change in %
Net Revenue 3594
(749)
4,274
(890)19%
4,274
(890)
6,167
(1,285)44%
EBITDA1040
(217)
1,386
(289)33%
1,386
(289)
2,086
(434)51%
PBT620
(129)
843
(176)36%
843
(176)
1,271
(265)51%
EPS (Rs) 19.10 5.42* 42% 5.42* 6.42** 18%
Rs. in Crs (USD in Mn)
Strong Financial Performance – FY 2008-09 (Amalgamated)
*On Equity Shares with a face value of Rs 2 each; ** On Equity Shares with a face value of Rs 2 each at expanded
share capital post-amalgamation of 140.18 Cr shares. On original share capital, the EPS is Rs. 7.48.
Details JHPL JPVL JHL
Revenue 317.91 418.73 174.14
EBITDA 294.49 256.21 46.00
PAT 142.86 186.47 21.50
Dividend Declared 15% 20% -
OPERATING SUBSIDIARIES PERFORMANCE IN FY 2009 (Ending Mar. 31, 2009) Rs. in Crs
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JAL – Projections
Rs Crores(Mn USD)
E&C Cement
EBITDARevenue
Real Estate
237721
1,1911,631
753
752
1,591
2,026
301
448
206
5931
87
123
457
307
412
413
2008-
Actual
2009-
Prov.
2010 2011
1,386
(289)
4,639
(966)
3,582
(746)
2,086
(435)
1,7302,862
4,825
6,9531,950
2,237
5,004
7,175
256
440
925
1,360
31
171
214
336
457
307
412
413
2008-
Actual
2009-
Prov.
2010 2011
4,274
(890)
6,167
(1,284)
11,381
(2,371)
16,236
(3,383)
Others (including Div.)Hotels & Hosp.
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• Number of Shares outstanding was 1183.80 Mn of Rs 2 each as of 22 May 2009
• FCCB-I Conversion at USD 97.94 Mn out of USD 100 Mn (97.94%) as of 22 May 2009
• FCCB-II Conversion at EURO 160.27 Mn out of EURO 165 Mn (97.13%) as of 22 May 2009
• FCCB-III Conversion at USD 4.5 Mn out of USD 359 Mn* (1.25%) as of 22 May 2009
(*The Company has bought back & cancelled FCCBs (Series III) of the face value of USD 41 Million )
Shareholding Pattern (May 15, „09)
Post Amalgamation Shareholding:
Promoters: 37.65%, Trust: 14.35%, Public: 48%
Public/
PCB's,
17.52%
FII's,
24.69%
Promoter
Holding,
45.12%
MF's/
Banks,
12.68%
Market Capitalisation (Rs. Crs)
20,521
26,353
11,69310,083
3,454
1-Apr-05 1-Apr-06 1-Apr-07 1-Apr-08 22-May-09
($ 720 Mn.)
($ 2.1 Bn.)($ 2.4 Bn.)
($ 4.27 Bn.)
Continuously Creating Shareholder Value
($ 5.5 Bn.)
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6. Summary
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JAL Has Excellent Growth Opportunities
India’s strong consistent economic growth and infrastructure development
has provided JAL with tremendous opportunities
Engineering & Construction
Established track record as the leading hydropower E&C company
Clear competitive advantage
Immense growth potential in Indian hydropower
Power
Over 13,000 MW portfolio with 60:40 thermal-hydro mix and 40% merchant power
Expressways and Real Estate
India’s two largest expressway projects – Ganga Expressway and Yamuna Expressway
totaling 1250 km approx. to be executed by JAL
Construction opportunity in excess of Rs 650 Billion
400 Million sq feet of Real Estate development as part of development of 6250 acres of
land along Yamuna expressway.
3.3 Billion sq feet real estate development along the Ganga Expressway
Cement
New cement plants in fast growing markets of the North,Central,Eastern & Western Zones
will make JAL the 3rd largest cement group in India
Dominant low cost producer of cement
Strong cement demand in JAL’s natural marketing zone
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THANK YOU
