GVK Power & Infrastructure Ltd

GVK Power & Infrastructure LtdInvestor PresentationAugust 2010

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Company OverviewKEY HIGHLIGHTS

Listed on BSE/NSE since February 2006

First QIP in May 2007 – INR 12,210 Mn raised

Second QIP in July 2009 – INR 7,200 Mn raised

Market Capitalisation of INR 68,923 Mn*

Diversified portfolio – airports, power plants, road, coal

mines, oil & gas blocks and SEZ

PORTFOLIO BY ASSET SIZE (PROJECT COST)

COMPETITIVE ADVANTAGES

Growing Portfolio

Balanced Portfolio

Competitive Bidding &

Negotiation Skills

Innovative Financing

Timely Execution Skills

Vast Experience of Operating

Assets

* As of 30 July 2010

KEY RATIOS FY 2010 FY 2009

EBITDA Margin 25.9% 34.3%

PAT Margin 8.4% 20.1%

Net Debt: Equity 1.29 1.27

DSCR 1.29 2.61

Current Ratio 2.14 3.24

Airports23%

Coal Fired Plants

6%Hydro Power18%

Gas Fired Plants47.6%

Roads3%

SEZ1%

Coal Mines1%

Oil & Gas0.4%

AIR

POR

TS

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GVKPIL - Assets at a Glance

Figures in brackets show shareholding and capacity respectively

Operational Under Construction/Development

GVK Industries Ltd Phase 1 (100%) (217 MW)

GVK Industries Ltd Phase 2 (100%) (220 MW)

Gautami Power Ltd Phase 1(64%) (464 MW)

Alaknanda Hydro Power Ltd(100%) (330 MW)

GVK Power Goindwal Sahib Ltd (100%) (540 MW)

Goriganga Hydro Power Pvt Ltd (100%) (370 MW)

GVK Coal (Tokisud) Company Pvt. Ltd

(100%) (52 Mil Tonnes)

Seregarha Mines Ltd (44.45%) (67 Mil Tonnes)

GVK Industries Ltd Phase 3(100%) (800 MW)

Gautami Power Ltd Phase 2 (64%) (800 MW)

GVK Ratle Hydro Electric Project Pvt Ltd (100%) (690 MW)

GVK Oil & Gas Ltd (74%) (7 Deepwater Blocks)

ENER

GY

TRA

NSP

OR

TATI

ON

Mumbai International Airport Ltd (37%)

Bangalore International Airport Ltd (29%)

GVK Jaipur Expressway Private Ltd (100%)

GVK Deoli Kota Expressway PvtLtd (100%)

ENERGY

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901 MW – OPERATIONAL ASSETS

870 MW – ASSETS UNDER CONSTRUCTION

2,661 MW – ASSETS UNDER

DEVELOPMENT

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GVK Industries Ltd (Phase 1 & 2)PROJECT OVERVIEW

PHASE 1 PHASE 2

Capacity217 MW Mixed Fuel Plant 220 MW Dual Fuel Plant

Commissioning Date 20th June 1997 14th April 2009

Project Cost INR 10,255 Mn INR 8,931 Mn

PPA Agreement 18 Years with APDISCOM

15 Years with APDISCOM for 80% of installed capacity

Tariff Structure2 part tariff with post tax ROE of 16% pa

Capacity Charges (Bid Variable) + Fuel Charges

Merchant Sale NA 20% Installed Capacity -Expected

PHASE 1 Q1 FY 2011 Q1 FY 2010

Income from Operations

897.2 1091.7

Cost of Fuel 597.8 809.7

EBITDA 77.7 153.9

PAT 13.5 27.2

Figures in INR Mn

HIGHLIGHTS

• Phase 1:

• PLF for Q1 FY 2011 – 87.14% as compared to 87.7% in Q1

FY 2010

• 415 Mn units sold in Q1 FY 2011; same as Q1 FY 2010

• Phase 2:

• PLF for Q1 FY 2011 – 98.65% as against 98.61% in Q1

FY2010

• 450 Mn units sold in Q1 FY 2011 as compared to 398 Mn

units in Q1 FY 2010

PHASE 2 Q1 FY 2011 Q1 FY 2010


1,151.4 1,095.6

Cost of Fuel 780.5 748.6

EBITDA 298.3 275.1

PAT 55.8 34.3

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Gautami Power Ltd (Phase 1)PROJECT OVERVIEW

Capacity 464 MW Dual Fuel Plant

Commissioning Date 5th June 2009

Project Cost INR 19,350 Mn

PPA Agreement15 Years with APDISCOM for 80% of installed capacity

Tariff StructureCapacity Charges (Bid Variable) + Fuel Charges

Merchant Sale 20% Installed Capacity - Expected

Figures in INR Mn

HIGHLIGHTS

• PLF for Q1 FY 2011 – 90.94% as compared to 95.37% in Q1 FY

2010

• 913 Mn units sold in Q1 FY 2011 as compared to 269 Mn units in

Q1 FY 2010

• Presently plant is receiving 100% of its gas requirement (2.3

MMSCMD) from Reliance

Q1 FY 2011 Q1 FY 2010


2,381.4 705.5

Cost of Fuel 1,546.8 456.7

EBITDA 656.8 214.9

PAT 146.3 42.9

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Alaknanda Hydro Power Ltd

HIGHLIGHTS

• Financial closure achieved in Aug 2007

• 12% of output to be given free to Uttarakhand State

• Project being evaluated for carbon credits

• All major contracts awarded:

BHEL – Electromechanical works

Vertex – Civil Works

Precision Engineers – Hydro-Mechanical Works

PROJECT OVERVIEW

Capacity 330 MW

Commissioning Date FY 2012 (Expected)

Project Cost INR 26,977 Mn (Approved by UPERC)

Type of Project Run of the River Hydro Project

PPA Agreement 30 + 20 Years with UPPCL

Tariff Structure 2 part tariff with assured post tax ROE of 14% + incentives

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GVK Power Goindwal Sahib LtdPROJECT OVERVIEW

Capacity 540 MW Coal Fired Thermal Plant


Project Cost INR 29,638.1 Mn (Approved by PSERC)

Financial Closure Achieved on 1st Feb 2010

PPA Agreement 25 Years with PSEB

Tariff Structure As per CERC norms

HIGHLIGHTS

• 1,067 acres of land acquired

• Compound wall construction, site grading work and approach roads work completed

• Work in progress at Boiler area, ESP area, Power House Building, TG Foundation and Coal Handling Area

• BTG contract awarded to BHEL and BOP contract awarded to Punj Lloyd

• Coal to be sourced from captive mines (Tokisud & Seregarha) in Jharkhand

• Coal Transportation Agreement signed with Indian Railways

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GVK Coal (Tokisud) & Seregarha Mines

TOKISUD HIGHLIGHTS

• Financial Closure achieved on 27th April 2010

• Environmental Clearance granted by MoEF

• Forest Clearance granted by MoEF

• Mine Lease approved by Govt. of Jharkhand

• Entire 926 acres acquired for compensatory afforestation

• 657 acres of non forest land acquired for mine site

• District Collector has approved R&R proposal

TOKISUD PROJECT OVERVIEW

Mineable Reserves 52 Mn Tonnes

Start Date October 2010


Location Hazaribagh, Jharkhand

Coal Supply2 million tonnes per annum to Goindwal Sahib thermal power plant

Coal Pricing StructureCoal India Ltd rates minus grade discount

SEREGARHA PROJECT OVERVIEW

Estimated Geological Reserves

66.7 Mn Tonnes - GVKPIL’s share

Start Date FY 2014 (Expected)

Project CostINR 2,914 Mn (Estimated) – GVKPIL’s share

Location Latehar, Jharkhand

Coal Supply1 million tonnes per annum to Goindwal Sahib thermal power plant

Coal Pricing Structure To be finalized

SEREGARHA HIGHLIGHTS

• Jointly allocated with Arcelor-Mittal; GVKPIL’s share is 45%

• Prospecting License has been applied for

• Rs. 5 Mn paid to Central Coalfields Ltd towards compensation

for transfer of Mineral Rights

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Goriganga Hydro Power LtdPROJECT OVERVIEW

Capacity146 MW – Bogudiyar-Sirkari Bhyol225 MW – Mapang-Bogudiyar



Power Off-TakePart Merchant Power / Part PPA (Expected)

Status of DPRSubmitted to Uttarakhand Government for approval

HIGHLIGHTS

• 12% of output to be given free to State of Uttarakhand

• Letter of Award issued to EQMS for preparation of EIA

• DPR for Bogudiyar-Sirkari Bhyol project completed by WAPCOS and submitted to GoUK and CEA

• TOR Clearance obtained from Ministry of Environment & Forests for both phases

• Project to be constructed at approximately 8,200 to 9,600 feet above Mean Sea Level

• Approach road being built with Border Roads Organization

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GVK Ratle Hydro Electric ProjectPROJECT OVERVIEW

Capacity 690 MW



Concession Agreement 35 Years

Power Off-Take Part Merchant Power / Part PPA

Status of DPR Prepared by NHPC in 2007

HIGHLIGHTS

• Dam located on Chenab River in Jammu & Kashmir

• 16% of output to be given free to State of Jammu & Kashmir

• INR 5 Lacs per MW to be paid as upfront premium

• Approach road is NH 1B

• Geological investigation of power house has been done by NHPC

• GoJK will ensure that entire power is evacuated via 400 KV transmission lines

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AIRPORTS OPERATING, MANAGING & DEVELOPING

TWO OF INDIA’S LARGEST AIRPORTS –

MUMBAI & BENGALURU

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Mumbai International Airport LtdConcession Award Date Apr 2006

Target Completion Date May 2013

Estimated Project Cost (INR Mn) 98,000

Current Traffic (Mn. Pax) in FY 2010 25.61

Target Capacity ( Mn. Pax) 40

Current Cargo Tonnage (mtpa) in FY 2010 0.58

Future Cargo Tonnage (mtpa) in 2013 1.0

Concession Period 30+30 Years

Revenue Share with AAI (%) 38.7%

Total Acreage 1,976

Land Available to MIAL for Commercial Real Estate Development (acres)

198

Domestic Terminals 1-A & 1-B refurbished

Terminal 1-C commissioned in April 2010

Mandatory Projects proceeding as per plan

To receive ADF of INR15,430 Mn over next 3 years

Received 10% increase in aeronautical charges in Jan 2009

Real estate strategy finalized – awaiting MMRDA approval

MIAL OVERVIEW

KEY DEVELOPMENTS MAJOR RETAILLICENSES Q1 FY 2011 Q1 FY 2010

Oil Throughput 198.9 184.3

Duty Free 119.2 163.5

Advertisements 85.8 117.3

Ground Handling 88.2 56.1

Foreign Exchange 53.1 46.8

Food & Beverages 61.2 41.9

Flight Kitchen 36.4 12.5

Figures in INR Mn

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MIAL – Project HighlightsCAPACITY AUGMENTATION ON TRACK

EPC Contract – Awarded to L&T in Nov 07 for integrated passenger terminal (400,000 sq.m.) & airsideworks. To be completed by Dec 2012

Slum Rehabilitation Contract – Awarded to HDIL in Oct 07; to clear 276 acres of slum area; No cash outflowfor MIAL; To be completed by Oct 2011

Taxiway & runway systems upgraded, Terminals 1-A & 1-B refurbished, New Terminal 1-C commissioned,ATC systems improved, integrated terminal construction underway

FINANCING ARRANGEMENTS IN PLACE

Debt – INR 42,310 Mn debt tied up; INR 23,300 Mn drawn as on 30th June 2010 ADF1 – Up to INR 15,430 Mn approved by Government over a period of 48 months Equity – Commitment of INR 12,000 Mn by MIAL shareholders, INR 6,000 Mn already infused

DIVERSE REVENUE STREAMS

Duty Free Shopping – Awarded to DFS Singapore in Nov 07 for 24,541 sq. ft. for 3 years Advertising Rights – Awarded to Times Innovative Media Limited for a period of 3 years Other Contracts – Retail, Car parking, Food & Beverage and other non-aero contracts awarded

UNLOCKING REAL ESTATE POTENTIAL

Senior & highly experienced management / project teams in place Physical Master Plan prepared; estimated to unlock 1.04 mn sq ft of commercial space initially Cushman Wakefield Market study, HOK Master Plan Completed, HVS appointed for Hospitality Market

study

1 integrated terminal

40 Mn passengers 1 Mn tonnes

cargo 20 Mn sq ft of

commercial real estateT

A R

G E

T S

T A

R G

E T

S

(1) ADF = Airport Development Fee

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MIAL – Financial & OperationalOPERATIONAL HIGHLIGHTS Q1 FY

2011Q1 FY 2010

INTERNATIONAL

Aircraft Movements per Day 182 175

Passenger Movements (Mn) 2.19 1.96

DOMESTIC



TOTAL (INT+DOM)



CARGO

Cargo Handled (Metric Tonnes) 161,113 134,941

FINANCIAL HIGHLIGHTS Q1 FY 2011 Q1 FY 2010

Revenue

Aeronautical 1,010.5 975.7

Non Aeronautical 1,062.2 986.7

Cargo 607.0 416.1

Interest & Dividend 15.4 14.1

2,695.1 2,392.6

Expenditure

Annual Fee to AAI 1,043.1 925.9

Operating & Admin Expenses 642.1 691.8

EBITDA 1,009.9 774.9

Finance Charges 122.6 134.2

Depreciation 232.4 151.5Upfront Fees Amortization &

Retirement Compensation 37.0 12.5

Profit Before Tax 617.9 476.7

Taxes 216.0 171.1

Profit After Tax 401.9 305.6Figures in INR Mn

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Bangalore International Airport Ltd

HIGHLIGHTS

• State Government financial support - grant of interest free loan

of INR 3,500 Mn, repayable after 11 years of operations

• No new airport allowed within 150 kms up to 25th year

• EPC function handled by Siemens and L&T

• Major contracts - Indian Oil (Aviation Fuel), NACIL (Cargo),

JCDecaux (Advertising), Globe Ground (Ground Handling), Oberoi

Hotels (Business Hotel), HMS Host (F&B), etc

PARTNERS

• GVKPIL – 29%

• Siemens – 40%

• KSIIDC – 13%

• AAI – 13%

• Unique Zurich – 5%

Commercial Operations Date 24th May 2008

Incurred Project Cost (INR Mn) 22,000

Current Traffic (Mn. Pax) in FY 2010 9.92

Current Cargo Tonnage (mtpa) in FY 2010 0.174

Concession Period 30+30 Years

Revenue Share with AAI (%) 4%

Total Acreage 4,000

Land Available for Commercial Real Estate Development (acres)

515

PROJECT OVERVIEW

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BIAL – Financial & OperationalOPERATIONAL HIGHLIGHTS Q1 FY

2011Q1 FY 2010

INTERNATIONAL



DOMESTIC



TOTAL (INT+DOM)



CARGO

Cargo Handled (Metric Tonnes) 53,240 37,491

Figures in INR Mn

FINANCIAL HIGHLIGHTS Q1 FY 2011 Q1 FY 2010

Revenue

Aeronautical 811.71 669.17

Non Aeronautical 421.25 397.48

Cargo 61.35 41.75

Interest & Dividend 57.84 35.18

1352.15 1143.58

Expenditure

Annual Fee to AAI 53.83 45.74

Operating & Admin Expenses 376.07 362.28

EBITDA 922.25 735.56

Finance Charges 384.00 172.20

Depreciation 335.39 324.62

Profit Before Tax 202.86 238.74

Taxes 1.26 1.50

Profit After Tax 201.60 237.24

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TRANSPORTATION DEVELOPED & MANAGING INDIA’S FIRST

SUCCESSFUL 6 LANE ROAD PROJECT –

JAIPUR KISHANGARH EXPRESSWAY

AWARDED A 4 LANE BOT – DEOLI KOTA

EXPRESSWAY

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Jaipur-Kishangarh Expressway LtdPROJECT OVERVIEW


Grant from NHAI INR 2,110 Mn

Commissioning Date April 2005

Concession Period 20 Years (From 2003)

Length of Highway 90.385 kms

Revenue Sharing 40 % with NHAI on additional revenue earned beyond projection

FINANCIAL RESULTS Q1 FY 2011 Q1 FY 2010

Gross Toll Revenue 436.9 397.3

NHAI Share 28.5 24.4

EBITDA 202.6 253.5

PAT 112.6 115.2

HIGHLIGHTS

• 9.93% increase in Toll Revenue due to: 7% increase in traffic volumes Shift in traffic towards multi-axel vehicles

• 7% increase in traffic volumes due to: 11% increase in Multi Axle Vehicles 5% increase in Buses 11% increase in Light Goods Vehicles

• Decline in PAT due to INR 135.6 Mn of major maintenance expenditure

Figures in INR Mn

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Deoli-Kota Expressway LtdPROJECT OVERVIEW

Project Cost INR 8,000 Mn (Estimated)

Date for Financial Closure Q2 FY 2011 (Expected)

Concession Period 26 Years (Including 30 months for construction)

Length of Highway 83.04 kms

Revenue Sharing INR 486 Mn in first year of operations with 5% increase in each subsequent year

HIGHLIGHTS

• Project consists of 4-laning the current 2 lane road

• Project is on NH-12 (Jaipur to Jabalpur) in the state of Rajasthan

• Current daily traffic is estimated to be approximately 22,000 PCUs

• Freight traffic currently accounts for 80% of traffic

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OTHER ASSETS 7 DEEPWATER OIL & GAS BLOCKS – NELP

VII

2,932 ACRE MULTI-PRODUCT SEZ IN TAMIL

NADU

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Oil & Gas

WORK UNDERWAY

• Agreement with WesternGeco to collect seismic data

• Vessel has begun collecting 2D seismic data

• Identifying needed technical resources

• Bank guarantees re-submitted for all 7 blocks to DGH

PROJECT OVERVIEW

Blocks Awarded 7 Deepwater Blocks – Awarded Under NELP VII

JV Partner BHP-Billiton

Estimated Capital Outlay INR 2,200 Mn (Next 3 years)

Location Off western coast of India

Area Awarded 34,000 sq km (Approx)

WORK PLANNED OVER NEXT 2 YEARS

• Obtained approvals from various Government &

Defence agencies for acquiring 2D data

• Reprocessing existing 2D data & mapping of areas for

new information

• Take decision for 3D data acquisition & for drilling of

exploratory well

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GVK Perambalur (SEZ) Pvt Ltd

HIGHLIGHTS

• Formal Approval granted by SEZ Board of Approval

• EIA report submitted to MoEF for Environmental Clearance

• Government land alienation in progress

• Mahindra Consulting Engineers Ltd appointed Technical Consultants

• SENSES Consultants retained for environmental studies & obtaining clearance from Ministry of Environment & Forests

• 40 MLD water supply from Kollidam river & 3 MLD from river Vellar sanctioned by TWAD Board

• Contour & Topography studies completed by Apex Topomappers Pvt Ltd

• Soil Investigation Work completed by FS Engineers Pvt Ltd

PROJECT OVERVIEW

Planned Size of SEZ 2,604 Acres

Land Purchased2,932 Acres – includes land acquired for DTA


Project Cost Rs. 8,500 Mn (Estimated)

Location Perambalur District, Tamil Nadu

Targeted IndustriesLeather Tanneries, Chemicals, Textiles, Agro-Processing, small engineering. etc

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Thank You

For further information, please contactIssac A George – Director & Chief Financial Officer

[email protected] Paropkari – Vice President, Investor Relations

[email protected] Vijaya Shankar – Senior Manager, Investor Relations

[email protected]

Documents

GVK Power & Infrastructure Ltd