0 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Investor Presentation
June 2016
1 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
DISCLAIMER
The materials being shown in this presentation is solely for information and not to be reproduced, retransmitted, further distributed to any other person or published, in whole or
in part, for any other purpose.
These materials have been prepared by GMR Infrastructure Limited (the "Company") solely to be used for this presentation. No representations or warranties, express or
implied, are made by the Company or its subsidiaries (collectively, the “Group”) or any of their respective members, directors, officers or employees or any other person as to,
and no reliance should be placed on, its fairness, accuracy, completeness or correctness of the information or opinions presented or contained in these materials and have not
been independently verified.
It is not the intention to provide a complete or comprehensive analysis of the financial or trading positions or prospects of the Company or the Group. None of the Company or
the Group or any of its directors, officers, employees, agents, affiliates, advisers or representatives accepts any liability whatsoever from any loss howsoever arising from any
information or opinions information or opinions presented or contained in these materials or otherwise arising in connection with these materials. The information and opinions
presented or contained in these materials are provided as on the date of this presentation and are subject to change without notice and the accuracy of the information is not
guaranteed.
This presentation is for information purposes only and is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any
securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation
may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the
Company. This presentation should not be relied upon as the basis of an investment decision in securities of the Company or the Group.
The distribution of this presentation in certain jurisdictions may be restricted by law and persons who come into possession of this presentation should observe any such
applicable restrictions. The Company or its Group cannot be held liable for distribution of the presentation by the investors who come into possession of the presentation or for
non compliance with applicable laws or restrictions.
This presentation and the discussion that follows may contain “forward looking statements” relating to the Company or the Group. These forward looking statements, which
may include statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions,
expectations, estimates, and projections of the directors and management of the Company about the business, industry and markets in which GMR Infrastructure the Group
operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are
beyond the Company’s or the Group’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward
looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of the Group. In particular, such
statements should not be regarded as a projection of future performance of the Company or the Group. It should be noted that the actual performance or achievements of the
Company and the Group may vary significantly from such statements.
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Institutional Framework
3 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Visionary Leadership Building Institution For Perpetuity…
THE GROUP HOLDING BOARD
GM Rao
Group Chairman
• Founder Chairman of the Group
• Since 1978, he has successfully led the GMR group
creating infrastructure assets of national importance
• Holds a degree in Mechanical Engineering
Srinivas
Bommidala
Chairman, Airports
• Held various managerial
positions in the GMR Group in
the past
• One of the first Directors of the
Group and Board Member since
1996
GBS Raju
Chairman, Energy
• Involved with the group since
1996
• Held various positions including
the group CFO in the past
• Instrumental in establishing the
roads business
G Kiran Kumar
Corporate
Chairman
& MD, GMR Infra
• Significant experience in leading
projects and businesses in the
infrastructure space
• Spearheaded the development
of the T3 terminal at Delhi
Airport
B V N Rao
Chairman, Urban
Infra & Highways
• Over 40 years of experience
• One of the founding Directors of
the Group in 1988
• Has been associated with all
the businesses promoted by the
group
P M Kumar
Chairman,
Institution
Building &
Governance
• Over 45 years of experience in
several leading and diverse
organizations in senior
leadership and consulting
positions
INDEPENDENT DIRECTORS ON GIL BOARD
NC Sarabeswaran
• Ex- director of
RBI and ING
Vysya Bank
Dr. Prakash G
Apte
• UTI chair
professor at
IIM Bangalore
• Has served on
expert
Committees
appointed by
NSE and SEBI
R S S L N
Bhaskarudu
• Ex- MD of
Maruti Udyog
Limited
• Served more
than two
decades at
BHEL
S Sandilya
• Chairman -
Eicher Motors
• Board member
of Parry’s
Sugar
Industries &
Mastek
S Rajagopal
• Ex-Chairman
& MD of Bank
of India, Indian
Bank
V. Santhanaraman
• Ex- ED of
Bank of
Baroda
C. R.
Muralidharan
• Ex- ED of
Bank of
Baroda
Kameswari Vissa
• CA with over
24 years of
experience
comprising of
management
consultancy
and industry
experience
Jayesh Desai
• Managing
Partner - SIG,
Piramal Group
• CA and holds
Bachelor’s
degree in
Commerce
4 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
A Feature Of Our Governance is The Group Performance Advisory
Council, which Comprises Eminent Industry Leaders
Dr. Sumantran is Executive Vice-Chairman of Hinduja Automotive. From 2001-05, he was chief executive of TATA Motors
Car business. Prior to this he had a 16-year career stint with GM in Detroit Dr V Sumantran
Former Chairman Ingersoll Rand. Previously held leadership positions with Kirloskar group. He serves on the advisory and
statutory Board of various Companies Daljit Mirchandani
Founder / Co-founding member Indocean, CRISIL and HDFC. He has been in advisory roles to USAID, The World Bank
and The Asian Development Bank in the past Pradip P Shah
Previously held leadership positions in Wipro, ABB and HP. Member of several boards including Idea Cellular and ING
Vysya Bank Arun Thiagarajan
He has over 4 decades of banking experience and is a consultant for World Bank, IFC, etc. He has served as CEO of
Corporation Bank and Chairman of Vysya Bank K R Ramamoorthy
Retired IAS, with over 30 years experience in financial services and public sector enterprises. Served leadership positions
like Chairman SEBI (equivalent to SGX in S’pore, SEC in US), CMD IDBI Bank, Chairman UTI M Damodaran
A highly acclaimed business advisor, speaker, and author who has coached some of the world's most successful CEOs.
For 35 years, he's worked with companies like GE, Bank of America, DuPont, 3M,etc. Dr Ram Charan
5 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
We have approached Institution Building through
Technology, People and Governance
• Family Governance guided by
Family Constitution
• Management Assurance, Ethics,
Governance Council
• Group Performance Advisory
Council (GPAC)
• Business Excellence
• Strategy & Risk Management
• Corporate Centre of Excellence
for processes – Procurement, HR,
Legal
• Centralized infrastructure and
ERP with real-time intelligence
• Business automation with real-
time war rooms, toll monitoring,
video audits, laser mapping.
• Process automation through ERP
and e-enabled shared services
organization for back-office
transactions
• Vision, Values & Beliefs
• Leadership Development and
talent Management
• Empowered Organization
Process & Governance 2 Technology 3
People 1
6 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
The Group’s values and beliefs are driven through institutional
mechanisms
• Incorporated in performance appraisal of all
employees
• 360 degree feedback on values
• Mandatory value clarification workshops
• Used as a key criteria during recruitment
Integration of Values & Beliefs into GMR Work
7 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Education
• Running 8 schools and colleges
• Scholarships / support to over 4,000 students
• Partnering with over ~350 Government school impacting more than 35,000 students
Health, Hygiene and Sanitation
• A 135-bed secondary care hospital at Srikakulam (Andhra Pradesh)
• Have Ambulances, Mobile medical units and 28 Medical Clinics
• School health check up covering over 150,000 children
• Public and Community Toilets built
Empowerment and Livelihoods
• 8 training institutes for unemployed youth; more than 4,500 trainees per year
• Settlement rate of 80%
• Supporting ~300 self help groups
Committed to “Giving Back To The Community" through
GMR Varalakshmi Foundation
“To make sustainable impact on the human development of under-served
communities through initiatives in education, health and livelihoods”
Mission of
GMR Varalakshmi
Foundation
8 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Two highlights of our governance are the Family Constitution and
outside-in views...
• An independent panel comprising six eminent industry leaders
• The review is based on a Balanced Score Card (BSC) approach
• Meets every quarter to assess and advise on the group performance, including in-person meetings
• Recommendations are discussed with the Board and suitable actions taken.
Group Performance Advisory Council
• A family vision that is in sync with the business vision
• Describes the family governance structure through a family constitution
• Defines rights and responsibilities of family members in business and outside of business
• Codifies agreed ways of decision making within the family
Family Governance
Run the family like business and run the
business like family
GPAC helps to get an outside-in view of the
business & its performance
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Business Overview
10 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
GMR Group: Evolution And Key Milestones
Incorporation of
GMR
Infrastructure
Ltd (GIL)
Consolidation • Execution:
Operationalise under construction projects
• Focus on operational efficiency, returns & cash flow optimisation
• Liquidity management
• Recycling of capital through divestments
• Declared Investment holiday
Young Group – Less than 20 years old with a Balance Sheet of INR 672bn [USD 11.2bn]
• Chennai power plant started operations
• Two highways started operations
• Forayed into airports with award of Hyderabad airport concession
• Hyderabad airport started operations
• Delhi Airport (DIAL) concession awarded
• GIL IPO successfully completed
• Raised ~USD 1 bn via QIP of GIL, largest QIP by any Indian corporate
• Acquired 50% stake in Intergen Power
• Ambala Chandigarh toll road started operations
• Terminal 3 of DIAL completed in record 37 months
• Coal mines in Indonesia acquired
• Sabiha Gokcen (Istanbul airport) inaugurated
• Raised ~USD 315 mn via QIP of GIL
• PE Investors invest US$300mn in GMR Energy and US$330mn in GMR Airports
• Stake in Intergen Power divested for USD 1.2 bn
• 5 power plants and 3 road projects became operational
Growth Phase
• Focus on attaining scale and
rapid growth
• Bidding for new projects and
commencing construction
Managing
Turbulence
• Raising of
equity capital
• Focusing on
execution
Stable Cash Flows
• Airport and Highway projects fully
operational
• No further investments required
• Assets stablisation and positive cash flows
• Operational capacity of Energy set to
increase with new projects coming
onboard resulting in higher cash flows
USD 1 = INR 60
• Divested stake in Island Power, Istanbul Airport, GMR Jadcherla and GMR Ulundurpet
• EMCO & Kamalanga power projects started operation
• Road projects started operation: Hyderabad Vijayawada, Hungund Hospet and Chennai ORR
• Won concession to expand Cebu airport in Philippines
• Received favourable verdict (Jun’14) from arbitration tribunal regarding termination of Male Airport
• Raised INR 14.8bn [USD 250mn] via QIP, INR 14bn [USD 233mn] via Rights Issue and USD 289 mn through DIAL bond issue
• Refinanced project loans of EMCO and Kamalanga
• Raised USD 300mn (~Rs 2,000cr) through an FCCB from Kuwait Investment Authority (KIA)
• Tenaga to invest USD 300mn for a 30% stake in GMR Energy
• Divested Hungund-Hospet road project while adopted SDR for Rajahmundhry project
11
Business Overview
AIRPORTS
~80 mn Passenger Capacity • 2 Airports in Delhi and Hyderabad
• 1 Airport in Philippines : Mactan - Cebu Airport
ENERGY
~7,200 MW Power Generation Capacity • 3,000MW of Coal Based Projects
• 1,400MW of Gas Based Projects
• 180MW of Hydro Projects – under construction
• 2,025MW of Hydro Projects – under development
• 25MW of Solar Project / 3.4MW of Wind Power Projects
• 350kms of 2 Transmission Projects
• 4 Coal Mines – 2 each in India and Indonesia
HIGHWAYS
9 Operational Projects • 4 Annuity Projects - 284kms
• 5 Toll Projects - 446kms Toll
URBAN INFRASTRUCTURE
~15,530 Acres Land • 230 acres in Delhi Airport &1,500 acres in Hyderabad Airport
• 3,300 acres in Krishnagiri &10,500 acres in Kakinada
12 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Corporate Structure
97% 93.5%*** 100%
Promoter & Promoter Group
61.6%
FIIs 19.3%
MF & DIIs 7.8%
Others 11.2%
Shareholding
as on Mar 31,
2016 G I L
Operational Stake Operational Coal / Diesel based Projects Stake Operational Annuity Projects Stake
EMCO Power Plant (600 MW) 100% Tuni Anakapalli 100%
Kamalanga Power Plant (1,050 MW) 86% Tambaram Tindivanam 100%
Chhattisgarh Power Project (1,370 MW) 100% Pochanpalli 100%
Chennai Power Plant (200 MW) 51% Chennai ORR 90%
Operational Gas based Projects
Kakinada Power Plant (235 MW) 100% Ambala Chandigarh 100%
Vemagiri Power Plant (388 MW) 100% Hyderabad Vijaywada 90%
Rajahmundry Power Project (768 MW) 45% Hungund Hospet * 36%
Operational Renewable Energy Projects Faruknagar Jadcherla 26%
Solar Power Project (25 MW) 100% Tindivanam Ulundurpet ** 26%
Wind Power Projects (3.4 MW) 100%
Operational Transmission Projects
Aravali Line (96 kms) 100%
Maru Line (269 kms) 100%
Under Construction
Bajoli Holi Power Project (180 MW) 100%
Under Development
4 Hydro Power Projects (2 India, 2 Nepal)
Coal Mining Projects
PT Barasentosa Lestari 100%
PT Golden Energy Mines 30%
Operational BOT (toll) Projects
GMR Airports Ltd GMR Energy Ltd GMR Highways Ltd
Delhi International Airport 64%
GMR Hyderabad International Airport 63%
Mactan-Cebu International Airport 40%
* Share Purchase Agreement signed to divest 51% stake; already transferred 15% in Mar’16 ** Share Purchase Agreement signed to divest remaining 26% stake *** Includes both direct & indirect holding
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Airport Sector
14 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
GMR Airports: Assets
Three world class emerging markets airports
• World class airports - Aggregate capacity of ~80mn passengers (Delhi, Hyderabad and Mactan Cebu Airport)
• Emerging market focus - 2 airports in India and 1 in Philippines
• Diversification of revenue streams - Besides revenue from aero related activities, airports also get revenue from non-aero related activities such
as cargo handling, MRO, F&B, IT & Car Parking and also from Real Estate at airport
Delhi
Hyderabad
Philippines
Mactan Cebu International
Airport
Shareholders
GMR 40% Megawide 60%
Second Busiest Airport in
Philippines
Delhi International Airport
Shareholders
GMR 64% AAI 26% Fraport 10%
India’s Largest and
Busiest Airport
Hyderabad International
Airport
Shareholders
GMR 63% GoAP 13% AAI 13%
MAHB 11%
India’s First Greenfield
Airport
15 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Airport Asset Details
Project Delhi International Airport (DIAL) Hyderabad International Airport
(GHIAL)
Mactan - Cebu International Airport
(MCIA)
Status Operational Operational Operational and undergoing expansion
Annual Passenger
Capacity 62 mn 12 mn 16 mn #
Concession Terms • 30 + 30 years concession (starting
April 2006)
• 46% revenue sharing
• 30 + 30 years concession (starting
March 2008)
• 4% revenue share
• 25 years (from the O&M start date)
• Upfront fees of USD 320mn + VAT
• Project cost of USD 750mn
Commercial Property
Development
• 230 acres Real Estate parcel
• 1st Phase development of 45 acres has
completed
• Work on 2nd Phase is underway
• 1,500 acres Real Estate parcel
• 1st Phase : To develop 250 acres
aviation SEZ and 250 acres multi
service SEZ
Revenue Structure • Assured “Target Aero Revenue” every year, based on variables like approved
project cost, WACC, normative operations, etc. • Aero revenue based on pre-determined
PSF
Traffic – FY16 48.4 mn Pax;
365,696 ATMs*
12.5 mn Pax;
106,303 ATMs*
8.0 mn Pax;
64,900 ATMs*
Traffic – FY15 41 mn Pax;
323,455 ATMs*
10.5 mn Pax;
94,562 ATMs*
Source: Company Data; *ATM = Air Traffic Movement
# Post 1st phase of expansion
16 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Airports: Cash Flows to improve
DIAL’s tariff fixation assumptions (by AERA) under appeal
• Appealed for cost of equity of 24% vis-à-vis currently
approved rate of 16% by AERA
• Appealed for return of 24% on real estate deposits
(utilized to fund capex) vis-à-vis Nil return approved
by AERA
Long awaited regulatory approvals to improve the profitability matrix
Note : Current tariff will continue till the final order of Tribunal
UDF collection started post DGCA notification restoring the
collection of Airport Charges with effect from 05 Nov’15
GHIAL has submitted its tariff proposal for second control
period starting 01 April 2016
Delhi Airport Hyderabad Airport
• DIAL raised ~USD 289mn through a bond issue. The issue
was oversubscribed by ~16 times
• Proceeds from the issue was used to prepay the ECB
• Resulted into a benefit of (a) lower interest cost and (b)
bullet repayment instead of yearly repayments in ECB
Refinancing existing debt to realign cash flows to repayment
• GHIAL refinanced the existing term debt post AERA’s decision to
change the “Till” methodology
• Got moratorium of two years thereby reducing pressure on cash
flows
Delhi Airport Hyderabad Airport
USD 1 = INR 60
17 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
DIAL Land Monetisation to unlock Higher Potential Returns
• Awarded development rights for 14 asset areas through
competitive bidding
− Developable area of 6.12 msf
• Operations commenced for JW Marriott, Lemon Tree, Red Fox,
Holiday Inn, Ibis Hotel, Novotel and Pullman
− ~2,400 rooms are operational with an occupancy of 70-75%
Aerotropolis Development Plan
Majority of
Land Bank Core Airport
infrastructure
NH 8
Gurga
on *LP = Land Parcel
Flexibility in land usage – allows all commercial activities except residential
230 acres of Aerotropolis Development Aerotropolis Phase - I : 45 Acres of Hospitality District
• Commercial development at airport envisages
development of an alternate commercial hub, right in the
heart of NCR
• Location lends dual advantage of central location with
effective connectivity & proximity to demand
• First phase of 45 acres of development, constitutes of
hospitality and commercial assets
• Next phase of 23 acres land development as a Retail
district is underway
• Monetisation of 23 acres in Phase II
− RFQ completed and RFP issued to qualified bidders
− Targeting to create a retail focused district
− Developable area of ~2.0 – 2.5 msf
• Monetization to be done through a transparent bidding process
− Expected to complete the process & award the project by end-
H1FY17
Aerotropolis Phase - II : 23 Acres of Retail District
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Energy Sector
19 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
PT Barasentosa
Lestari, Indonesia
(404 MT)
Bajoli Holi
(180 MW / Hydro)
Alaknanda
(300 MW / Hydro)
Upper Marsyangdi
(600 MW / Hydro)
Upper Karnali
(900 MW / Hydro)
Talong
(225 MW / Hydro)
Maru Transmission
269 Kms
Aravali Transmission
96 Kms
Chhattisgarh
(1,370 MW / Coal)
EMCO
(600 MW / Coal) Kakinada
(235 MW / Gas)
Chennai
(200 MW / Diesel)
Rajahmundry
(768 MW / Gas)
Kamalanga
(1,400 MW / Coal)
Vemagiri
(388 MW / Gas)
Solar Plant
(25 MW)
Operational Assets
Projects Under Construction
Projects Under Development
Legends:
Transmission Projects
Coal Mines
Sinar Mas, Indonesia
(1.8 BT)
4,636 MW in operation and 2,555 MW under implementation
7,191 MW
Capacity by stage Fuel based capacity
7,191 MW
Operational 4,636 64%
Under construction
180 3%
Under development
2,375 33%
Coal 3,370 47%
Hydro 2,205 31%
Natural Gas 1,391 19%
Others 225 3%
Energy Assets
20 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
GMR Infrastructure
Ltd
GMR Energy Ltd
Kamalanga Power
Plant- 1,400MW
Warora Power Plant-
600MW
Vemagiri Power
Plant- 388MW
Gujarat Solar Plant-
25MW Bajoli Holi Hydro
Project- 180MW
Upper Karnali Hydro
Project- 900MW
Upper Marsyagadi
Hydro Project-
600MW
Alaknanda Hydro
Project- 300MW
Thermal
(Coal & Gas)
Renewable
(Hydro & Solar)
Chhattisgarh Power
Plant – 1,370MW Other Power Assets
Indonesia coal mines
Other Assets
Maru & Aravalli
Transmission
Private Equity
Investors
Operational Under Construction Under Development
93.5%*
6.5%
Rajahmundhry
Power Plant- 768MW
* Includes both direct & indirect holding
Kamalanga Power Plant includes 350MW of Unit 4 which is under development
Current Structure of GMR Energy
Barge Plant- 235MW
21 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Coal Projects (~3,000 MW)
COD
Warora (600MW) Kamalanga (1,050MW) Chhattisgarh (1,370MW)
PPA
Fuel Linkage
PLF
Refinancing
Others
• November 2015 (Unit - 1)
• March 2016 (Unit – 2)
• Fully contracted long term PPA’s
• 85% of power contracted through long
term PPA. Plan to tie-up the remaining
also through a long term PPA
• Long term PPA with CSPT for 35% of
gross capacity. Remaining untied 65%
– strategy is to tie up long term PPA
• Confirmed linkage from Coal India for
entire capacity
• Confirmed linkage from Coal India for
entire capacity
• Won the operational Talabira coal mine
and Ganeshpur coal mine
• PLF of ~76% in FY16
• To improve as TANGEDCO (Tamil
Nadu) PPA (150MW) started in Dec’15
• PLF of ~67% in FY16
• Has improved as evacuation issues are
now resolved
• PLF of ~26% in H2FY16
• To improve as the long-term PPA gets
contracted
• Refinancing of project loan completed
• Resulted in lower interest rate of
110bps with moratorium of 18months
and 15 year repayment period
• Refinancing of the project loan
completed under RBI’s 5/25 scheme
• Lower interest rate of ~100bps and
moratorium of 30months with 16.5 year
repayment period
• Awaiting tariff orders – Change in Law
& Coal pass through
• Supply of 150 MW power to
TANGEDCO has fully commenced
from Dec’15
• GRIDCO PPA - Favorable order
received from CERC on maintainability
w.r.t. tariff determination petition
• Haryana PPA - Favorable order
received from CERC for for ‘Change-in-
Law & ‘Coal cost pass-through’ petition
• Transmission lines are completed and
charged
• Coal mining at Talabira started from
Aug’15
• March 2014 • September 2013
Project
Project Cost • INR 124bn [USD 2,071mn] • INR 65bn [USD 1,087mn] • INR 40bn [USD 667mn]
USD 1 = INR 60
22 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Coal Mines
Project Talabira mine Ganeshpur mine
Mine Location Sambalpur, Odisha Latehar, Jharkhand
Prior Allottee Hindalco Industries Tata Steel Limited & Adhunik Group
Upfront payment INR 540mn [USD 9mn] INR 1,090mn [USD 18mn]
Geological Reserve - 138 Mn Tons
Extractable Reserve 9 Mn Tons 92 Mn Tons
Mining Plan 3 Mn Tons p.a. 4 Mn Tons p.a.
Bid Price INR 478 /ton INR 704 /ton
Coal Quality Grade ‘F’ (3,600 kcal) Grade ‘G 11’ (4,200 kcal)
Strip Ratio 1.02x 1.39x
Distance from plant 296 kms 740 kms
Current Status • Fully explored and operational
• Mining commenced from Aug’15
• Under development stage
• Would take 2-3 years to become operational
Project GEMS PTBSL
Mine Location Indonesia Indonesia
Shareholding 30% held by GMR Group 100% held by GMR Group
Resources 1.77 Bn Tons 404 Mn Tons
Reserves 640 Mn Tons 142 Mn Tons
USD 1 = INR 60
23 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Gas Projects (~1,400 MW)
Project Vemagiri
(Andhra Pradesh)
Kakinada
(Andhra Pradesh)
Rajahmundry
(Andhra Pradesh)
Capacity 388 MW 235 MW 768 MW
Project Cost INR 11.5bn [USD 190mn] INR 6bn [USD 100mn] INR 49.4bn [USD 822mn]
Commencement
of Generation January 2008 June 2010 October 2015
Power Off-take
• 100% Regulated Tariff
• 23 years long term PPA (starting Sept’06)
for 370 MW, with four state owned
distribution cos in AP
• 100% Merchant Tariff
• PPA with GMR Energy Trading Ltd for 220
MW
• Signed short term PPA based on supply of
gas through the RLNG scheme
Additional
Information
• Plant operated at 59% PLF till FY’12
• Gas allocation from KG Basin (not received
any natural gas supply since Mar’13)
• Plant restarted post restart of gas supply
through the e-bid RLNG scheme
• PLF in FY16 stood at ~18%
• Relocated the Barge to Kakinada in Apr’10
• Converted into Gas-based Power Plant
• Plant operated at 56.8% PLF till FY’12
• Gas allocation from KG Basin (not received
any natural gas supply since Mar’13)
• CoD achieved in Oct’15 post start of gas
supply through the e-bid RLNG scheme
• PLF in H2FY16 stood at 20%
• To enter into long term PPA at appropriate
time based on sustainable gas supply
• Due to delay in securing fuel, project has
faced cost overruns
USD 1 = INR 60
24 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Investment of USD 300 mn by Tenaga
Nasional Berhad (Tenaga), Malaysia
for 30% equity interest in a select portfolio
of GMR Energy Ltd.
25 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Overview • Primary investment of $300m (~Rs 2,000 cr) by Tenaga Nasional Berhad in GMR Energy for 30% stake on a
fully diluted basis
Structure
• Investment by Tenaga would be in select portfolio of assets of GMR Energy
o Selected assets would be in Portfolio A (depicted in Slide 6)
o Assets included in Portfolio B (depicted in Slide 6) will include Chhattisgarh and Rajahmundry Power plants
− Tenaga has right to invest in Chhattisgarh and other assets at the Fair Market Value (FMV) any time
within the next 5 years
o Indonesian coal mines would remain outside of GEL since Tenaga does not want to take exposure in
commodities
GEL Valuation • Equity Value of USD 1 bn (~Rs 6,665 cr1)
Key Terms &
Conditions
• Proceeds from the transaction (~Rs 2,000 cr) to be used for corporate debt servicing
• All convertible instruments (Private Equity players) to be converted into equity shares prior to the transaction
• GMR would remain the majority shareholder
• Subject to conditions customary to a transaction of this nature including applicable regulatory approvals from
Malaysia and India, applicable lender consents, restructuring of GMR Energy including carve out of assets, etc
1 Assuming an INR/ USD exchange rate of 66.65
Strategic Partnership with Tenaga Nasional Berhad
26 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Revised Structure of GMR Energy
GMR Infrastructure
Ltd
GMR Energy Ltd
Kamalanga Power
Plant- 1,400MW
Warora Power Plant-
600MW
Barge Plant- 235MW
Gujarat Solar
Plant- 25MW
Bajoli Holi Hydro
Project- 180MW
Upper Karnali Hydro
Project- 900MW
Upper Marsyagadi
Hydro Project- 600MW
Alaknanda Hydro
Project- 300MW
Thermal
(Coal & Gas)
Renewable
(Hydro & Solar)
Chhattisgarh Power
Plant – 1370MW
Rajahmundry Power
Plant – 768MW
Other Assets
Other Power
Assets
Indonesia coal
mines
Excluded Assets
Maru & Aravalli
Transmission
Portfolio A – Tenaga is investing in this portfolio Portfolio B – Right to invest within 5 years
Tenaga Private Equity
Investors
52%*
18% 30%
* Includes both direct & indirect holding
Kamalanga Power Plant includes 350MW of Unit 4 which is under development
Operational Under Construction Under Development
Vemagiri Power
Plant- 388MW
27 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Bajoli Holi
(180 MW / Hydro)
Alaknanda
(300 MW / Hydro)
Upper Marsyangdi
(600 MW / Hydro)
Upper Karnali
(900 MW / Hydro)
Warora
(600 MW / Coal)
Kakinada
(235 MW / Gas)
Kamalanga
(1,050 MW / Coal)
Vemagiri
(388 MW / Gas)
Solar Plant
(25 MW)
Operational Assets
Projects Under Construction
Projects Under Development
Legends:
Portfolio A – Balanced Mix of Operational & Pipeline Projects
Kamalanga
(350 MW / Coal)
• Operating capacity of ~2,300 MW comprising 5 assets
o Warora – 600 MW coal based plant strategically located in
the high growth oriented western region of Maharashtra
o Kamalanga – 1,050 MW coal based plant strategically
located close to the coal belt of Odisha
o Vemagiri – 388 MW gas based plant
o Barge – 235 MW barge mounted gas based plant
o Gujarat Solar – 25 MW solar power plant located at Patan
• Additional pipeline capacity of ~2,330 MW comprising 5
under construction / development assets
o Kamalanga Unit 4 – 350MW extension of Kamalanga
o Bajoli Holi – 180 MW hydro facility on the River Ravi
o Upper Karnali – 900 MW hydro project on the river Karnali
o Upper Marsyangdi – 600 MW hydro project on the river
Marsyangdi
o Alaknanda – 300 MW hydro project on the Alaknanda River
Balanced mix of Coal (2,000 MW), Gas (623 MW) and Renewable energy - Hydro (1,980 MW)
& Solar (25 MW)
28 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Project Location Fuel Capacity (MW) COD
Chhattisgarh Raipur Coal 1,370 Unit 1 – Nov 2015
Unit 2 – Mar 2016
Rajahmundry Rajahmundry Gas 768 Unit 1 – Oct 2015
Unit 2 – Oct 2015
Total 2,138
• Tenaga would have a right to invest in these assets anytime within the next five years
• Adds further strategic value to the portfolio by adding ~2,000 MW of operating capacity and increase its total portfolio
to over 6,700 MW
Portfolio B – Right to Invest in Additional ~2,000 MW of Capacity
• Considering the absence of long term Fuel Supply Agreement and long term Power Purchase Agreements, the
consortium of lenders have adopted the Strategic Debt Restructuring Plan (SDR)
o Accordingly, the company has issued equity shares proportionately to all the lenders
• As per the SDR scheme, out of the total outstanding debt (including overdue interest) of Rs 3,780 cr, debt to the
extent of Rs 1,414 cr has got converted into equity
o Consortium lenders now have 55% shareholding and balance 45% is held by GMR
• Balance debt of ~Rs 2,366 cr would have repayment period of 20.5 years including moratorium of 1.75 years and
interest rate of 10.75% p.a.
o Lower debt coupled with reduction in interest cost improves the long term viability of the project
Adoption of Strategic Debt Restructuring by GMR Rajahmundhry
29 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Partnership with Tenaga provides renewed impetus to Energy Business
• Partnership between one of the largest integrated utilities and an established player in the Indian Power sector will be a force multiplier to create one of the most valuable companies
Strong synergies from the strategic partnership with Tenaga
• GEL has more than 80% of its capacity contracted under long-term PPAs ensuring high visibility of cash flows
Strong Visibility on Cash Flows from Operational Portfolio
• Primary capital infusion strengthens GEL’s balance sheet through reduction of corporate debt
• Convertible preference shares issued to Private Equity Investors would be converted into Equity
Strengthening of the Balance Sheet
• Given the attractiveness of GMR Energy post the investment, it will have an opportunity to unlock value at an appropriate time
Attractiveness of GMR Energy from a value unlocking perspective
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Highway Sector
31 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
All 9 Projects (731 kms) are Operational
4 Projects (284 kms) are Annuity based and 5 Projects (447 kms) are Toll based
Hyderabad
Highways Projects
Chandigarh-Ambala Highway –
GACEPL (35 kms)
Tambaram-Tindivanam Highway –
GTTEPL (93 kms)
Tindivanam-Ulunderpet Highway –
GTUEPL (73 kms)
Tuni-Anakapalli Highway –
GTAEPL (59 kms)
Hyderabad-Vijaywada Highway –
GHVEPL (181 kms)
Adloor-Gundla Pochanpalli Highway –
GPEPL (103 kms)
Farukhnagar-Jadcherla Highway –
GJEPL (58 kms)
Chennai Outer Ring –
GCORRP (30 kms)
Hungund-Hospet Highway –
GOHHHPL (99 kms)
32 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Project Details
Project Name
Annuity Based Road Projects (285 kms) Toll Based Road Projects (446 kms)
GTAEPL GTTEPL GPEPL GCORRPL GACEPL GHVEPL GOHHPL GUEL GJEPL
Location Tuni-Ankapalli Tambaram-
Tindivanam Pochanpalli Chennai ORR
Ambala-
Chandigarh
Hyderabad-
Vijaywada Hungund-Hospet
Tindivanam
Ulunderpet
Faruknagar
Jadcherla
Shareholding 100% 100% 100% 90% 100% 90% 36% 26% 26%
Road Length
(kms) 59 93 103 30 35 181 99 73 58
CoD Dec-04 Oct-04 Mar-09 Jun-13 Nov-08 Dec-12 Nov-12* / May -
14 Jul-09 Feb-09
Concession Period 17.5 yrs from
May-02
17.5 yrs from
May-02
20 Yrs from
Sep-06
20 Yrs from
Jun-10
20 Yrs from
May-06
25 Yrs from
Apr-10
19 Yrs from Sep-
10
20 Yrs & 98 days
from Oct-06
20 Yrs from
Aug-06
Amount of Annuity
Payment
INR 295mn
(USD 5mn)
in May and
Nov each year
INR 418mn
(USD 7mn) in
May and Nov
each year
INR 542mn
(USD 9mn)
in March and
Sep each year
INR 621mn
(USD 10.4mn)
in June and Dec
each year
Key Development – – – – Arbitration
underway –
Signed Share
Purchase
Agreement (SPA)
to divest 51%;
transferred 15% in
Mar’16
- Divested 74%
stake in Sep13
- SPA signed in
Mar’16 to sell
remaining 26%
Divested 74%
stake in Feb13
* Partial CoD in Nov 2012 and completely operationalised in May 2014
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Way Forward
34 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Key Highlights - Past 24 Months
Particulars Update
‘Asset Light
Asset Right’
Approach
• Adopted the principle of “Develop, Build, Create Value and Divest”
• Focus moved from Asset Growth to Cash Growth
• Delivered on ‘Asset Light, Asset Right’ strategy
Divestments
• Divested 6 large projects
‒ 1 Airport: Sabiha Gocken International Airport (SGIA), Turkey
‒ 1 Power project: Island Power Project, Singapore
‒ 3 Road projects: Jadcherla Expressway, Ulunderpet Expressway and Hungund Hospet Expressway
‒ 1 Coal Mine: Eloff & Kendall Mines by Homeland Energy Group
• Released INR 39bn [USD 653mn] equity and reduced liabilities by INR 73bn [USD 1.2bn] through
divestments
Capital
Raising
• Total Capital Raised since FY12 - INR 65bn [USD 1.1bn] (excluding divestments)
• Raised INR 48.8bn [USD 813mn] in the last 24 months
o QIP of INR 14.8bn [~USD 250mn]
o Rights Issue of INR 14.0bn [~USD 233mn]
o FCCB of INR 20.0bn [USD 300mn]
• Investment of USD 300mn by Tenaga for a 30% in a select portfolio of GMR Energy Ltd
USD 1 = INR 60
35 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Key Highlights - Past 24 Months (cont.)
Business
Verticals Update
Energy
• GMR Energy - Renegotiation completed with Private Equity Investors; to be issued 18% stake in company
• Warora & Kamalanga - Both plants successfully operationalised & FSA signed for 100% capacity
o Orissa PPA (Kamalanga) - Awarded a tariff increase of Rs0.65/unit to Rs3.4/unit
o Haryana PPA (Kamalanga) – Awarded favourable order w.r.t. ‘change in law’ and ‘coal cost pass-
through’
o Tamil Nadu PPA (EMCO) - Commenced full supply of 150MW from Dec’15 onwards
• Chhattisgarh project (GCEL) - Achieved CoD for Unit I in Nov’15 and for Unit II in Mar’16
o Talabira Coal Mines - Coal production started from Aug’15 & getting dispatch to Chhattisgarh project
• Gas Auctions (RLNG scheme) - GMR has won right to receive imported R-LNG for two of it’s power projects.
Vemagiri & Rajahmundhry has won gas supply for upto 30% PLF (Phase 3) during H1FY17
o Both Vemagiri & Rajahmundhry started operations during FY16 post winning gas supply in the e-bid
RLNG scheme and operated at ~20% PLF during the year
• Strategic Debt Restructuring of Rajahmundhry project – Converted Rs 1,414 cr of debt into equity & issued
shares to consortium lenders representing 55% stake in the project
• Refinancing of Operational projects - Group is refinancing the project debt to align the cash flows with
repayment schedule. Refinancing of project debt resulted into
o Warora - lower interest rate by 110bps; principal moratorium of 1.5 years & loan tenure of 15 years
o Kamalanga - lower interest rate by ~100bps; principal moratorium of ~2.5years
o Rajahmundhry - lower interest rate by ~325bps; principal moratorium of 1.75 years & loan tenure of
20.5 years
36 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Key Highlights - Past 24 Months (cont.)
Business
Verticals Update
Airport
• Delhi Airport - Raised USD 289mn through an international bond issue
• DIAL Real Estate - RFP issued for monetising additional 23 acres for retail district
• Hyderabad Airport – Restarted collection of User Development Fee (UDF) under ‘Hybrid Till’
methodology of tariff determination; Submitted tariff proposal for second control period with AERA
• Mactan Cebu Airport, Philippines – Construction ongoing for expanding capacity to 16 mn pax in Phase
1; current throughput at 8 mn pax in CY15 compared to a capacity of 5 mn pax
• Maldives Airport - Arbitration Tribunal has ruled that unilateral termination of the concession agreement
by Govt. of Maldives (GoM) was illegal & repudiatory. The Tribunal in Jun'15 issued the 2nd part final
award clarifying that the quantum of damages must be assessed assuming the date of termination to be
in Dec’12. Also in Feb’16, in its 3rd part final award, Tribunal further ruled that the damages payable by
GoM and MACL will also include all the sums owed to the project lenders
Highways
• Hungud Hospet project – Signed Share Purchase Agreement to divest our 51% stake at a Price/book
value of 1.1x; already transferred 15% stake in Mar’16
• Tindivanam Ulundurpet project – Signed Share Purchase Agreement to divest to the balance 26% stake
to India Infrastructure Fund
Urban Infra &
EPC
• Krishnagiri SEZ - First Electronic Manufacturing Cluster (EMC) in the country approved in principle by
Govt. of India, monetizing 527 acres of land with govt. grant of INR 2.6bn [USD 43mn]
• DFCC project - GIL led consortium has won two packages of Eastern Dedicated Freight Corridor project
worth INR 51bn [~USD 850mn]
USD 1 = INR 60
37 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Total Assets (INR bn)
16.6
24.8 25.9 25.5
42.6
FY12 FY13 FY14 FY15 FY16
75.9
82.6 86.4 88.9
109.5
FY12 FY13 FY14 FY15 FY16
Net Revenue (INR bn) EBITDA (INR bn)
Key Financial Indicators (Consolidated)
Debt Position as on 31 March 2016
Corporate Debt
INR 64bn 14%
Project Debt
INR 405bn 86%
Gross & Net Debt (INR bn) Sector wise Debt breakup Gross debt bifurcation
468.9
67.7
401.2
Gross Debt Cash &equivalents
Net Debt
Airport 22%
Energy 52%
Roads 7%
Others 5%
Corporate 14%
562
638 651 667 672
FY12 FY13 FY14 FY15 FY16
38 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
• Consolidate existing Energy & Highways projects
• Capex holiday in Energy & Highway projects
• Explore select profitable opportunities in the Airport sector
• Focus on consolidation and strengthening of balance sheet through deleveraging
• Continuous reduction of Corporate Debt
• Refinancing of project debt through capital market / bank refinancing route to result into
• Reduction of interest rate,
• Projects getting longer moratorium and
• Extending maturity of debt primarily to align the repayment schedule with the Cash Flows of the project
• Capital raising through IPO GMR Airports Ltd
• Induction of strategic / financial partner in Airport holding company
• Divestment of certain operational Energy / Highway projects
• Recovery of receivables from (a) Maldives arbitration, (b) Energy Distribution companies, (c) Air India, etc
Focus for next 12- 18 Months
Focus on strengthening of Balance Sheet through reduction of debt
Group Strategy
Financial Initiatives to Strengthen the Balance Sheet
39 Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
0
56
113
0
102
179
226
0
26
247
168
0
33
158
207
Summing Up - Key Takeaways
Capex phase complete; entered cash flow generation phase
Diversity across business segments – To ensure stability of cash flows
Continued focus on asset monetisation post value creation - Released INR 39bn [USD 653mn] equity and reduced
liabilities by INR 73bn [USD 1.2bn] through strategic divestment over last 24 months
Government’s renewed focus on infrastructure and resolution of impediments are likely to provide boost to GMR
GMR will continue to focus on rationalizing capital management while capturing growth in Indian infrastructure sector
Delivered world class assets in record time like Delhi and Hyderabad airport - Received various awards & recognitions
Reduction in interest rates to boost profitability through project refinancing
Strong track record of raising capital - Total Capital Raised of INR 65bn [USD 1.1bn] since FY’12 (excl. divestments)
USD 1 = INR 60
Experienced Leadership and Management teams duly guided by the Group Performance Advisory Council
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Thank You
For further information, please visit
Website: www.gmrgroup.in or
Contact: [email protected]