INVESTOR PRESENTATION DEC 2015 - Srei Investor Update_Dec15... · S. Chatterjee Member of the Board of Directors of Nabil Bank, ... Analysis • Group ... SREI Equipment Finance Pvt

SREI INFRASTRUCTURE FINANCE LIMITED INVESTOR PRESENTATION DEC 2015

WE ARE NOT JUST FINANCIERS!

WE ARE PARTNERS IN HELPING BUILD BUSINESSES.

WE PROVIDE MORE THAN JUST FINANCING.

WE BRING INSIGHT, KNOWLEDGE, EXPERTISE AND CROSS-CATEGORY

LEADERSHIP TO EVERY TRANSACTION.

DID YOU KNOW ?

st • 1st Indian NBFC to access international markets for fund raising and 1st Indian NBFC listed on

the London Stock Exchange.

• Promoted India's 1st equipment banking Company – Quippo. Quippo – One of the largest infrastructure equipment rental company in the Country. Srei BNP Paribas – India’s largest construction and mining equipment financier with

over ~30% market share.

• 1st company to lay the ground for passive telecom infrastructure in India. Quippo Telecom – The first company to enter into shared Passive telecom

infrastructure in India. Quippo Telecom partnered with the Tata Teleservices and Viom has become one of the world’s largest independent telecom infrastructure companies.

• 1st to break new ground in rural IT infrastructure in India, under the National E-Governance Plan of the Government of India.

• Sahaj – India’s largest integrated rural network of over 27,931 Common Services Centres (CSC), covering 400 mn people (37% of India’s rural population).

• Power Distribution Sector

• Power – Distribution Network with T&D losses of only 2.25 % against country average of 25%.

• 1st PPP in Water Distribution Sector

• Swach - Awarded the prestigious Nangloi PPP contract by Delhi Jal Board, in partnership with JV partner Veolia Water for water treatment and distribution.

INNOVATION AND PIONEERING

INITIATIVES IS THE HALLMARK OF

DISCUSSION SUMMARY

COMPANY OVERVIEW………………………………………………

FINANCIAL OVERVIEW……………………………………………..

BUSINESS VERTICALS……………………………………………..

KEY BUSINESS HIGHLIGHTS…………………………………….

INFRASTRUCTURE EQUIPMENT GROUP

SREI BNP PARIBAS………………………………………….

INFRASTRUCTURE PROJECT GROUP

DEBT PORTFOLIO – LOAN BOOK…………………………

EQUITY PORTFOLIO – INVESTMENTS……………………

CONSOLIDATED FINANCIALS……………………………………...

Copyrights © Srei Infrastructure Finance Limited 2016 5

STRONG EXPERTISE ACROSS SECTORS - TRANSPORTATION, POWER, TELECOM, RURAL INFRASTRUCTURE, URBAN INFRASTRUCTURE, SEZ / INDUSTRIAL PARKS, PORTS

COMPANY OVERVIEW BUSINESS STRUCTURE

END TO END INFRASTRUCTURE SOLUTIONS LEVERAGING OUR DEEP DOMAIN KNOWLEDGE ACROSS SECTORS AND STRONG RELATIONSHIPS IN THE

INFRASTRUCTURE SPACE

INFRASTRUCTURE EQUIPMENT GROUP INFRASTRUCTURE PROJECT GROUP

EQUIPMENT FINANCING

CONSTRUCTION EQUIPMENT RENTALS

EQUIPMENT VALUATION & AUCTIONS

ASSET MANAGEMENT :

DEBT EQUITY MEZZANINE

PROJECT FINANCE, INFRA DEBT FUND

PE / VENTURE FUND, PROJECT EQUITY

STRUCTURED FINANCE

ADVISORY

PROJECT ADVISORY CAPITAL MARKETS - INVESTMENT BANKING ADVISORY

FOCUSED INFRASTRUCTURE SOLUTION PROVIDER


Equipment Finance

Infra Finance – Loan Book

Construction Equipment Rentals

Equity - Telecom Infra Equity – Significant Road Assets Equity - Social Infra

JV with BNP Paribas Market leader with

~30% market share Disbursements of

around Rs.612 bn from FY10 to YTD Dec’15

25 years of in-house expertise in Project Finance & Advisory.

Disbursements of around Rs.318 bn from FY10 to

YTD Dec’15

JV with Tata Teleservices India’s largest

independent tower company with 42,575

towers & highest tenancy ratio of 2.57x

Current portfolio of 8 significant road

projects of close to 3,264 lane kms.

Well diversified BOT Asset Portfolio spread

across 7 states.

Largest network of over 27,931 CSCs across 6 states in India, rapidly

expanding to new states

INFRASTRUCTURE PROJECT GROUP THROUGH VARIOUS PRODUCT OFFERINGS :

INFRASTRUCTURE EQUIPMENT GROUP THROUGH ENTIRE EQUIPMENT LIFECYCLE :

OFFERING

OFFERING Equipment Valuation

& Auctions

Leading Player with Pan India presence and in-depth knowledge of Construction

Equipment segment offering valuation and

auctioning services

COMPANY OVERVIEW PRESENCE ACROSS INFRASTRUCTURE VALUE CHAIN AND VERTICALS

One of India’s largest infrastructure

equipment rental company focussed on

Construction.


Key Institutional Investors % Holding

Fidelity 9.06

Vanguard Total International Stock index Fund 0.45

Dimensional Emerging Markets Value Fund 0.36

Japan Trustee Services Bank 0.30

Govt.Pension Fund Global 0.27

Wisdom Tree 0.24

INSTITUTIONAL HOLDING – DEC 2015

CONSOLIDATED FINANCIALS SHARE PRICE DETAILS

As on 31/12/2015 – NSE

Market Capitalization 2,800

Market Price (Rs) 55.65

No of Shares Outstanding (crs) 50.3

52-Wk High / Low (Rs) 71.00 / 30.10

SHAREHOLDING PATTERN – DEC 2015

COMPANY OVERVIEW FINANCIAL OVERVIEW

9M FY16 FY15

Consolidated AUM 36,949 35,387

Net Income 577 1,114

PAT 52 129

Net Worth 3,232 3,174

ROAE (%) 2.6% 4.9%

* CRAR (%) 18.0% 17.0%

* Standalone

Figures in Rs. crs

Foreign Holding

14%

Promoters 59%

Individuals 10%

Treasury Stock 10%

Pvt Corp Bodies

7%


Our Credentials - Leading financial institutions have invested in and/or financed Srei and its subsidiaries/JVs

COMPANY OVERVIEW STRATEGIC & FINANCIAL ALLIANCES


CORPORATE GOVERNANCE BOARD OF DIRECTORS

Salil K Gupta Chief Mentor

Former Chairman, West Bengal Industrial Development Corporation Limited (WBIDC) – A leading State financial institution Former President, The Institute of Chartered Accountants of India (ICAI)

Hemant Kanoria Chairman & Managing

Director

Honorary Board Member of the Centre for Global Dialogue & Co-operation – CGDC, Vienna Council Member, Indo-German Chamber of Commerce Former Chairman - National Committee on Infrastructure of Federation of Indian Chambers of Commerce & Industry (FICCI) Former President, Calcutta Chamber of Commerce Served as Member in Regional Direct Taxes Advisory Committee, Government of India Former Member of Board of Governors, Indian Institute of Management, Calcutta (IIMC) New Delhi Institute of Management - Board of Governors IIT Guwahati - Member of Board of Governors on behalf Srei

Sunil Kanoria Vice Chairman

Senior-Vice President - elect of The Associated Chambers of Commerce & Industry of India (ASSOCHAM) Governing body Member of the Construction Industry Development Council (CIDC) Council Member of the Institute of Chartered Accountants of India (ICAI) Served as Member of the Working Group on Construction for the Xth Five Year Plan of Planning Commission, Govt. of India Member of Central Direct Taxes Advisory Committee Served as President in Hire Purchase & Lease Association - Kolkata (HPLA); Merchants’ Chamber of Commerce - Kolkata (MCC)

and Federation of Indian Hire Purchase Association (FIHPA)

S. Rajagopal Over 42 years’ of experience in Banking Industry Former CMD of both Bank of India & Indian Bank

S. Chatterjee

Over 47 years of experience in Retail Commercial & Investment Banking and NBFC Former Executive Director, Axis Bank Limited, Mumbai Member of the Board of Directors of Nabil Bank, Nepal Extensive exposure in the area of International Banking having worked in SBI, London and as a Chief Representative in

Washington D.C having worked closely with IFC, World Bank and IMF

Dr. Punita Kumar Sinha Over 23 years’ experience in asset management in international and emerging markets. Former Chief Investment Officer (CIO), Blackstone Asia Advisors L.L.C. and also served as a Senior Managing Director in The

Blackstone Group LP Served as CIO and Senior Portfolio Manager, NYSE listed India Fund Inc. and Asia Tigers Fund Inc.

Mr. T.C.A. Ranganathan

Over 38 years’ of experience of spanning career with SBI, held diverse assignments in International Banking, Investment Banking, Corporate Finance, Corporate consultancy in addition to domestic banking as Branch head / Branch Controller, held Board positions in various SBI subsidiaries in North America, Africa and Asia

He has also served as CMD of EXIM Bank of India Member of several Government of India overseas initiatives such as Indo-South Africa CEO Forum, Indo-Africa Business

Council, Indo-Myanmar Joint Trade and Investment Forum etc Associated with some U.N arms for overseas consultancy apart from working as an arbitrator through the panels of

NSE/BSE/NCDEX/Indian Council of Arbitration.

Dr. Tamali Sen Gupta Over 30 years’ experience in legal field and is a specialist in transnational legal transactions in media, real estate development,

insurance and infrastructure Extensive experience in the structure of Projects implemented under project finance and on foreign participation in the

privatization of Infrastructure, international joint-ventures, collaboration and licensing agreements, mergers and acquisitions


INFRA FINANCE

Telecom Infra – VIOM 1,598

BOT Road Assets 307

Rural IT – Sahaj 11

Other Investments 38

FEE BASED

Key Metric 9M FY16 FY15

Fee Income 42 161

Sahaj (9M FY16)

Largest CSC network in India (~28% share) offering G2C, B2C &

FI Services in 6 States.

No. of CSCs 27,931

Sahaj Mandated Dist. 104

Population of Mandated Dist. (in Mn) ~ 400

Figures in Rs. crs

STRATEGIC INVESTMENTS

INFRA PROJECT GROUP

SEZ & INDUSTRIAL PARK

Over 2,991 acres of Land acquired for the development

of SEZ & Industrial Parks.

Mumbai SEZ / Industrial Park 345 Acres

Industrial Park, WB 128 Acres

Tamil Nadu SEZ 2518 Acres

EQUIPMENT FINANCE - SREI BNP PARIBAS

INFRA EQUIPMENT GROUP

COMPANY OVERVIEW SNAPSHOT OF OUR BUSINESS VERTICALS

KEY STRATEGIC INVESTMENTS


Total AUM 19,753 18,825

NIM 4.7% 4.9%

ROAA 0.7% 0.9%

ROAE 5.2% 7.2%

CRAR 17.4 % 17.1%

GROSS NPA 3.7% 4.7%

NET NPA 2.8% 3.6%


Loan Portfolio 12,920 12,243

Gross Spread 2.3% 3.5%

ROAA 0.3% 0.6%

ROAE 2.1% 3.4%

CRAR 18.0% 17.0%

GROSS NPA 4.6% 4.6%

NET NPA 3.6% 3.8%

# VIOM – Telecom Infra (9M FY16)

Total No of Towers 42,575

Tenancy 2.57x

Gross Revenue 3,860

EBIDTA Margin % 58%

Cash Profit 994

Significant Road BOT Asset Portfolio

Total No of Projects 8

Operational Projects 5

To be Operational 3

Total Lane Kms 3,264

Current Cumulative Toll Revenue in Q3FY’16

104

• # 9M FY16 figures of Viom are estimate


• Consolidated Net Worth* stood at Rs 3,232 crs against Rs 3,183 crs in same period previous year, Consolidated Borrowings stood at Rs 21,201 crs as against Rs. 20,530 crs in 9MFY’15

• Total Income stood at Rs. 2,443 crs as against Rs, 2,600 crs in same period previous year

• Profit Before Tax in 9MFY16 is Rs 81 crs as compared to Rs 184 crs in same period previous year, Profit after Tax (after minority) is Rs 52 crs as against Rs. 116 crs in same period previous year

• Forex Loss in 9MFY16 is Rs 18 crs , last year same period loss was Rs.19 crs.

• Interest Earning Portfolio of Equipment Financing is Rs 19,072 crs and that of Project Financing portfolio is Rs 13,758 crs

• Net NPA for Equipment Financing is 2.75 % and for Project Financing is 3.57%.

Business Highlights

Balance Sheet

Profitability

Loan Portfolio Analysis

• Group Disbursement stood at Rs.10,540 crs as compared to Rs.9,457 crs in same period previous year

• Equipment Finance disbursement was Rs. 6,611 crs in 9MFY16 as compared to Rs.6,200 crs in 9MFY’15 and Project Finance disbursement was Rs. 3,929 crs in 9MFY16 as compared to Rs. 3,257 crs in 9MFY’15

BUSINESS HIGHLIGHTS: 9M FY16 (CONSOLIDATED)

* Change in Net Worth is due to change in its definition in Companies Act 2013


Sustainable Competitive Advantage

ASSET PURCHASE ASSET DEPLOYMENT ASSET EXIT / RESALE

ASSET LIFECYCLE

LEVERAGING THE SREI ECO-SYSTEM TO DELIVER…… Assisting in right

equipment purchase. Customized financial

solutions – Loans & Advances Operating Lease Equipment on Rentals

Equipment Banking Captive Contracts Hiring Contracts & Match

Making Leveraging relationships to

improve deployment of assets during downtime.

Valuation & Inspection Valuation & Auctioning

services – Asset disposal services

Advising on asset disposal & resale options.

MANAGING CUSTOMER RELATIONSHIPS THROUGH THE ENTIRE ASSET LIFECYCLE

STANDALONE NBFC / FINANCER

SREI - END TO END SOLUTION PROVIDER ACROSS THE VALUE CHAIN

ASSET MANAGEMENT

Asset Maintenance - 32 captive stockyards for face lifting of assets. Thus improving residual value of assets.

Yard Management Equipment Refurbishment

SREI BNP Paribas ZAO SREI

QUIPPO CE

SREI BNP Paribas SREI INFRA QUIPPO CE

QUIPPO CE QUIPPO AUCTION QUIPPO AUCTION

SOLUTION PROVIDER

EQUIPMENT GROUP THE SREI ECO-SYSTEM


SREI BNP PARIBAS ABOUT US

Ownership

SREI Infrastructure Finance Ltd

BNP Paribas Lease Group

SREI Equipment Finance Pvt. Ltd.

Leading Public Financial

Institution in India

Amongst World’s Largest

Global Banks

+

May

‘0

8

STRONG PEDIGREE

MARKET LEADERSHIP

PRESENCE & TIE-UPs

Srei BNP Paribas, is a 50:50 joint-venture between – Srei Infrastructure Finance Limited – India’s only private sector NBFC

in the infrastructure space BNP Paribas Lease Group – the largest leasing group in Europe with a

presence in over 15 countries.

Largest construction & mining equipment financier in India with over ~30 % market share, with a customer base of over 45,000 built and nurtured over last 24 years.

Have entered in new sectors like information technology, healthcare, rural, logistics etc. to tap the attractive growth opportunity.

Current AUM of Rs.19,753 crs as on 31st Dec, 2015.

Pan-India distribution network of 86 branches including 15 state offices. Partnerships with all leading domestic & international equipment

manufacturers & vendors. Full time employee base of close to 1,700 people as on 31st Dec, 2015.


SREI BNP PARIBAS FINANCIAL SUMMARY

LOAN BOOK

RETURN RATIO & CRAR

MARGIN ANALYSIS

ASSET QUALITY

# On Total Assets

#

16.5%

11.3%

7.2%

4.5% 5.22%

16.2% 17.1% 17.1%

18.0%

17.52%

1.8%

1.3%

0.9% 0.6% 0.67%

0.0%

0.5%

1.0%

1.5%

2.0%

0.0%

5.0%

10.0%

15.0%

20.0%

FY13 FY14 FY15 H1FY'16 YTD Dec'15ROANW CAR ROAA

18,670 17,701 18,300 18807 19072

10,799

7,900 7719 3972

6611

FY13 FY14 FY15 H1FY'16 YTD Dec'15

Interest Earning Assets Disbursements

2.84%

4.78% 4.73% 4.17%

3.70%

2.16%

3.91% 3.64% 3.16%

2.75%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

FY13 FY14 FY15 H1FY'16 YTD Dec'15

Gross NPA % Net NPA %

3.8% 3.5% 3.48%

2.84% 3.04%

4.4% 4.6% 4.86% 4.50% 4.68%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

FY13 FY14 FY15 H1FY'16 YTD Dec'15Gross Interest Spread NIM


SREI BNP PARIBAS FAR-REACHING DISTRIBUTION NETWORK

BRANCH NETWORK

Well spread branch network helps (i) to tap growing demand & (ii) develop customer insights

No. of branches Disbursements(1) Dec 2015(Rs.crs)

18 1,527

23 1,372

18 1,706

30 2,006

89 6,611

Note 1: Finance Amount

ZONE WISE PORTFOLIO SPLIT

March 2015

Rs.18,300 crs

Dec 2015

Rs.19,072 crs

1 2

3 5 2 4

11 10

6 3

3

1

North

East

West

South

Zones

2 2 1

1 10

8

3 9


SREI BNP PARIBAS EQUIPMENT FINANCE VERTICALS

Target Segment- • First time

owners/buyers • Medium & Large

customers • Project Owners • Large Fleet Owners

Target Segment- • Large corporates &

IT companies • System integrators • OEM’s, banking &

financial institutions

Target Segment- • Hospitals • Diagnostic Centers

Target Segment- • Contract farmers • Tractor owners

Strategy- • Grow Vendor

Finance • Grow Retail &

SME • Reduce Strategic

Portfolio to 50% • Balance Portfolio

growth • Strengthen

technology • Talent

development

Strategy- • Focus on AAA & AA

customers • Grow Vendor

Financing

Strategy- • Direct sourcing • Approach high end

customers • Form alliances

Strategy- • Alliances & Vendor

Financing • Select Asset

Construction & Mining IT

Infrastructure Healthcare

Infrastructure Rural

Infrastructure Used

Target Segment- • Retail, SME players

( used for construction, miming equipment & technology )

Strategy- • Alliances with

manufacturers • Select Asset


SREI BNP PARIBAS BALANCE SHEET OVERVIEW

Interest Earning Assets (incl. securitised) 19,072 18,239 18,807 18,300 Securitised Assets 1,972 1,813 1,917 2,053

Net Worth 2,290 2,190 2,248 2,209

Borrowings 13,672 13,434 13,384 13,065

Other Assets (Net) (1,292) (760) (1,226) (935)

Key Ratios Dec-15 Dec-14 Sep-15 Mar-15

Return on Avg. Net Worth 5.2% 8.6% 4.5% 7.2%Return on Avg. Assets on Books 0.7% 1.1% 0.6% 0.9%Leverage 6.0 6.0 6.0 5.9 CRAR 17.4% 16.2% 18.0% 17.1%

Balance Sheet Summary (Rs crs) 9M FY16 9M FY15 FY15H1 FY16


SREI BNP PARIBAS INCOME STATEMENT HIGHLIGHTS

Disbursement 6,611 6,200 2,639 1,481 2,223 7,719 Income from finance activities (Net of OL Dep.) 1,725 1,757 599 594 578 2,320

Finance charges (excl Forex Impact) 1,069 1,089 361 364 351 1,443

NII 657 668 238 230 227 877NPA Provision & Write off 273 252 103 103 98 336 Provision on Standard Asset 10 2 2 (1) 0 0 NII (Net of Provision) 374 414 133 128 129 540Other Income 1 8 - 0 0 8 Operating Expenditure 250 215 82 74 86 323 PBT before Forex M2M 125 207 51 54 43 226 Forex M2M 3 (0) 1 2 3 (1)PBT 123 207 50 52 40 227PAT 88 137 37 34 28 153

Key Ratios Dec-15 Dec-14 Sep-15 Mar-15

Yield on Avg. Funds 13.7% 14.4% 13.5% 14.3%Cost of Funds 10.6% 10.8% 10.6% 10.8%Interest Spreads 3.0% 3.6% 2.8% 3.5%NIM 4.7% 5.0% 4.5% 4.9%Gross NPA* 3.7% 4.8% 4.2% 4.7%Net NPA* 2.8% 3.6% 3.2% 3.6%* On Total Assets

Income Statement (Rs crs) FY159M FY16 9M FY15 Q3 FY16 Q3 FY15 Q2 FY16


SREI INFRASTRUCTURE FINANCE LTD INFRASTRUCTURE PROJECT GROUP

Focused Infrastructure Solutions Provider across the entire value chain & verticals

STRONG PEDIGREE & CREDENTIALS

More than 2 decades of experience in Infrastructure space. Srei was classified as “Infrastructure Finance Company” (IFC) in the year 2011 and was also notified as “Public Financial

Institution” (PFI) by the Ministry of Corporate Affairs.

WIDE SPECTRUM OF PRODUCT OFFERINGS

Customized project financing solutions across various sectors in infrastructure domain. Structured financing solutions that mitigate risk and provide flexibility for meeting unique needs of the customers. Strategic equity solutions for key infrastructure projects. Project advisory solutions. Investment banking advisory solutions providing an efficient channel to access capital markets.

STRONG FINANCING CAPABILITIES

Diversified across various sectors - Power, Ports, Logistics, Transportation, Urban Infrastructure, Airport/Aviation and Telecom. YTD Dec’15 Loan book – Rs.12,920 crs (FY10 – YTD Dec’15 CAGR – 32%) YTD Dec’15 Investments – Rs.2,687 cr


SREI INFRASTRUCTURE FINANCE LTD KEY PRODUCT SEGMENTS

Customized project financing solutions - Project Finance Term Loan Syndicate Loan Lease Financing Sale & Lease Back Non-fund credit

facilities

Srei Infrastructure Finance Ltd

FOCUSED INFRASTRUCTURE SOLUTIONS PROVIDER

DEEP DOMAIN KNOWLEDGE AND STRONG RELATIONSHIPS ACROSS THE ENTIRE INFRASTRUCTURE SPACE

PREFERRED PARTNER FOR MANAGING THE ENTIRE INFRASTRUCTURE PROJECT LIFECYCLE

MEZZANINE EQUITY ADVISORY DEBT

Structured credit solutions that mitigate risk and provide flexibility for meeting unique needs of the customers – Structured Debt Subordinated Debt Hybrid Equity Bridge Financing

Strategic equity solutions for key infrastructure projects– Transportation Telecom

Infrastructure Power Rural IT

Infrastructure SEZ & Industrial

Parks Environment (Water

& Waste Management)

Project development & management solutions – Advised more than 75

projects costing over Rs.75,000 crs.

Investment banking advisory – Mergers & Acquisitions Private Equity DCM, ECM & Corporate

Advisory


SREI INFRASTRUCTURE FINANCE LTD BALANCE SHEET OVERVIEW

Interest Earning Assets 13,758 12,661 13,587 12,853 Net Worth 2,712 2,668 2,695 2,657 Borrowings 14,231 13,662 13,896 13,696 Investments 2,687 2,870 2,650 2,839 Other Assets (Net) 809 1,086 670 947 Key Ratios Dec-15 Dec-14 Sep-15 Mar-15Return on Avg. Net Worth 2.1% 3.8% 2.3% 3.4%Return on Avg. Assets 0.3% 0.6% 0.4% 0.5%Leverage 5.2 5.0 5.2 5.2CRAR 18.0% 19.6% 18.5% 17.0%

9M FY16 9M FY15Balance Sheet Summary (Rs crs) FY15H1 FY16


SREI INFRASTRUCTURE FINANCE LTD INCOME STATEMENT HIGHLIGHTS

Disbursement 3,929 3,257 775 1,382 2,151 4,827 Income from finance activities (Net of OL Dep.) 1,339 1,399 424 419 463 1,835

Finance charges (excl Forex Impact) 1,170 1,128 387 375 402 1,511 NII 169 272 37 44 61 324NPA Provision & Write off 45 107 (5) 12 36 271 Provision on Standard Assets 7 1 1 1 4 0 NII (Net of Provision) 117 164 41 32 21 53 Fee Based Income 31 41 3 18 21 131 Income from Investment 1 2 - 1 1 52 Other Income 30 27 9 8 12 36 Operating Expenditure 104 113 34 30 36 143 PBT before Forex M2M 74 121 19 29 18 129 Forex M2M 12 11 1 5 7 9 PBT 62 109 17 24 12 120PAT 43 74 12 16 8 91

Key Ratios Dec-15 Dec-14 Sep-15 Mar-15Yield on Avg. Funds 13.7% 15.3% 14.2% 14.9%Cost of Funds 11.3% 11.4% 11.5% 11.4%Interest Spreads 2.2% 3.8% 2.6% 3.5%Gross NPA* 4.6% 2.9% 4.7% 4.6%Net NPA * 3.6% 2.0% 3.6% 3.7%* On Total Assets

Income Statement (Rs crs) 9M FY16 9M FY15 Q3 FY15 FY15Q3 FY16 Q2 FY16


GROUP BORROWING PROFILE IMPROVING SHARE OF RETAIL SEGMENT

Currently, the Major source of Funding is Wholesale Funding through Banks. Consortium for: Srei BNP Paribas – 37 banks, SREI Infra – 30 banks.

BORROWING PROFILE – SREI INFRA

CURRENT BORROWING PROFILE

STRATEGY TO REDUCE COST OF FUNDS

Reducing Cost of Funds through diversifying with Wide Spectrum of Lenders. Exploring new avenue and Increasing the share of Retail Funding through options like NCDs.

BORROWING PROFILE – SREI BNP

Domestic Term Loans

18%

Foreign Currency

Loans 6%

Debenture 14%

Working Capital

53%

Others 1%

Subordinates 8%

Domestic Term Loans 15%

Foreign Currency Loans

8% Debenture 8%

Working Capital 60%

Others 1%

Subordinates 8%


Loan Book – Sectoral Breakup

PROJECT FINANCE LOAN BOOK ANALYSIS

Renewable - 1%

Captive - 6%

Linkage Coal / Gas – 2.4 Captive Fuel – 2.6%

IPP/Merchant – 5%

Generation - 30% T&D - 3%

Under Construction - 12%

Power - 33%

Operational - 18%

33% 33% 30% 33% 33%

30% 27% 27% 26% 26%

8% 11% 12% 10% 10%

5% 5% 5% 5% 4%

20% 20% 20% 23% 22%

4% 4% 6% 4% 4%

0%

20%

40%

60%

80%

100%

120%

Mar 14 Dec14 Mar 15 Sep-15 Dec-15

Power TransportationCommunication Oil & GasSocial & Commercial Infra Others


EQUITY INVESTMENTS PORTFOLIO SUMMARY

@ As on 31st Dec, 2015

Rs.crs

Summary of Investments

Particulars Value ( Value (Rs crs)Investment in Subsidiaries/JV 679

Strategic Investment *

Communication 1598Transportation 307Energy 15Rural IT 11Others 38Total Strategic Investment 1969Treasury Stock (Srei Holding) @ 19Equity Investment-Quoted 2Equity Investment-Unquoted 6Other Equity Investment 8Total Non- Current Investment 2675* Investments held directly or through funds@ Treasury Stock represents stock of Srei (48.6 mn shares) held by a trust on behalf of the company. The present market value of these shares is approximately Rs. 270 crs.

TELECOM – VIOM NETWORKS LTD

TRANSPORTATION – ROAD BOT PORTFOLIO

SOCIAL RURAL – SAHAJ

SEZ/INDUSTRIAL PARK

ENVIRONMENT MANAGEMENT

STRATEGIC INVESTMENTS


STRONG PEDIGREE

Viom Networks is a joint venture between Tata Teleservices Limited and Srei Infrastructure Finance Limited. Viom is India’s largest independent telecommunication infrastructure service provider.

Strong equity support from institutional investors such as Macquarie SBI Infrastructure Fund led consortium, GIC Investments Pte Ltd. Singapore, IDFC Private Equity and Funderburk Mauritius Ltd. (Oman Investment Fund)

Strategic relationships with all leading telecom operators in India – Tata Teleservices, Bharti Airtel, Aircel, MTS, Vodafone, Idea, Telewings and BSNL among others

ASSET PORTFOLIO & FINANCIAL HIGHLIGHTS

42,575 high quality towers with an industry leading tenancy ratio of 2.57x.

Well diversified presence across India – Metro (11%), Circle A (36%), Circle B (40%) & Circle C (13%).

50% of towers less than 3 years old, leading to efficient performance.

Majority of portfolio connected to grid power (97%) – highest in the industry.

1,500 newly re-engineered ultra-light towers with 50% lower capex requirement, which are profitable even at single tenancy.

YTD Dec’15 Financials (unaudited) – Revenue* of Rs. 3,860 crs and EBITDA of Rs.1,483 crs with *EBIDTA margin (excl. energy) of 58 % and Cash Profit of Rs.994 crs.

* Excludes prior period & extraordinary income

VIOM NETWORK COMPANY OVERVIEW

BUSINESS MODEL

Long term contracts Typically 10-20 year contracts with key tenants (including

TATA Group, Aircel, MTS and Telenor) Difficult break clauses ROFO / Preferred customer status

Revenue Visibility & Lock-Ins 12-15 years lock-ins with TATA Group 7 year lock-ins with Telenor, MTS and Aircel 5-7 year lock-ins with incumbent telcos Around 6 years of locked in predictable revenue of Rs.18,600 crs

Tenancy Stickiness Strategic pan – India tower locations Increasingly difficult new acquisitions leading to high entry

barriers


VIOM NETWORK ASSET PORTFOLIO-SCALABILITY & TENANT MIX

High Scalability – No of Towers have increased from 3,400 towers in FY08 to 42,575 towers currently growing at a CAGR of 39%. Present tenancy of 1,09,324 growing at CAGR of 51 % over last 8 years.

Tenancy Ratio - Highest Tenancy Ratio of 2.57x as compared to industry average tenancy ratio of 1.7x.

Independent Tower Company – Low dependence on Anchor Tenants with More than 67% of the tenancy is from Non-Tata service operators.

Robust portfolio Mix - Share of

incumbents and other operators increased from 18% to 43% from FY’11 to YTD DEC’15

SCALABILITY & TENANCY RATIO

TENANCY MIX (%)

3400

18500

3640738459

40403 40690 41956 42344 42533 42575

1.321.62

2.05 2.212.26 2.09 2.2

2.372.51 2.57

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 H1FY16

YTDDec'15

Total No of Towers Tenancy Ratio (No of Tenants per Tower)

41 42 45 38 34 32 30

12 1318

22 23 23 23

6 812 14 15 18 20

22 2112 12 11 11 10

19 16 13 14 17 17 17

0

20

40

60

80

100

120

FY11 FY12 FY13 FY14 FY15 H1 FY16 YTD Dec'15

Tata Incumbents Others Uninor New Entrants

18 43


VIOM NETWORK FINANCIAL HIGHLIGHTS

Strong annuity income with long term contracts.

Lock-in revenues of more than Rs.186 bn.

Incremental margins

in the range of 50-70% due to better efficiency & lower capex.

Strong cash profits &

well managed capital structure.

Net Debt reduction

of more than Rs.2,480 crs over last 4 years to Rs.5,562 crs currently.

Particulars (Rs Cr) FY11 FY12 FY13 FY14 FY15 YTD

DEC’’15 (unaudited)

Total No of Towers 38,500 40,000 40,690 41,689 42,344 42,575

Tenancy Ratio (No of Tenants per Tower) 2.4 2.4 2.2 2.2 2.37 2.57

Revenues - Service Income 2,956 3,246 3,296 2,949 3,139 2,513 Revenues - Pass Through (Energy) 1,413 1,537 1,651 1,677 1,686 1,347

Total Revenue * 4,369 4,783 4,947 4,626 4,825 3,860

EBIDTA 1,361 1,545 1,860 1,764 1,801 1,483

*EBIDTA Margin % - W/O Pass Through 46.0% 47.6% 54% 56% 56% 58%

Cash Profit 558 568 892 919 1,039 994

Total Debt 8,128 8,048 7,383 6,420 6,069 5,562

* excl. prior period & extraordinary income




SEZ/INDUSTRIAL PARK


EQUITY PORTFOLIO - INVESTMENTS


Road BOT Asset Portfolio

Total No of Projects* 8 No of Projects – Operational 5 No of Projects - Under Construction 3

Total Lane Kms 3,264 Lane Km – Operational 1,690 Lane Km – Under Construction 1,574

Gross Revenue Realized per Lane km (for Q3 FY16) 0.062 crs

WELL DIVERSIFIED PORTFOLIO

Execution Experience spread across 14 Road Projects on BOT/Annuity with over 5,400 lane Kms of Road Projects across India Well diversified BOT Asset Portfolio spread across 7 states such as Madhya Pradesh, Maharashtra, Uttar Pradesh, Kerala, Arunachal

Pradesh, Odisha & Haryana.

STRONG ANNUITY CASH FLOWS

Out of Total 8 Projects in which Srei has significant economic interest, 5 projects are already operational with cumulative Annual Gross Revenue of more than Rs. 272 crs for the nine month ended 31st Dec 2015.

One BOT project became operational in June ’15 and another one is expected to be fully operational by the end of FY16, thus resulting into strong Revenue growth & further Improved Cash Flows.

* Projects where the Company has Significant stake

BOT ROAD ASSETS PORTFOLIO SUMMARY

% State Wise BOT Portfolio (Lane Km)

25%

8%

6% 10% 15%

23%

12%

Arunachal Pradesh

Kerala

Madhya Pradesh

Haryana

Uttar Pradesh

Odisha

Maharashtra


BOT ROAD ASSETS PORTFOLIO SIGNIFICANT OPERATIONAL ASSETS

Particulars

4/6 Laning of Thirssur - Angamali,

NH-47

4 Laning of Indore – Ujjain Road on SH-27

4 Laning of Rohtak-Bawal

section of NH-71

4/6 Laning of Gaziabad-

Aligarh Section of NH – 91

6 Laning of Chandikhole

Bhubaneswar Section of NH-5

Project Cost (Rs.crs) 726 331 1,039 2,186 1,769

Project Type Toll Toll Toll Toll Toll

Concession Period (Yrs) 22 25 28 24 26

Project Road Length (Km) 65 49 83 125 67

Project Lane Km 260 196 332 500 402

State Kerala Madhya Pradesh Haryana Uttar Pradesh Odisha

Awarding Authority NHAI MPRDC NHAI NHAI NHAI

Project COD Dec-11 Nov-10 Sep-13 Jun-15# Apr-16*

• 4 / 6 laning project, tolling started from the Appointed Date . • # Partial COD achieved. Full COD expected on Apr 16


BOT ROAD ASSETS PORTFOLIO SIGNIFICANT OPERATIONAL ASSETS

Total Toll Collection (Rs Crs)

TOLL COLLECTIION

(Rs.crs)

Thirssur Angamali, NH-47

Indore – Ujjain Road on SH-27

Chandikhole Bhubaneswar

Section of NH-5

Rohtak-Bawal section of NH-71

Ghaziabad-Aligarh Section

of NH – 91 Total

Q1FY15 21 6 19 15 - 61

Q2 FY15 22 5 18 15 - 60

Q3 FY15 24 6 19 17 - 66

Q4 FY15 28 6 20 18 - 72

Q1 FY16 25 6 20 18 2* 71

Q2FY16 25 5 20 17 30 97

Q3FY16 25 6 21 20 33 104

* Toll commenced on 25th June 2015

61 60 66 72 71 97 104

0

50

100

150

Q1 FY15 Q2FY15 Q3FY15 Q4FY15 Q1 FY16 Q2FY16 Q3FY16


BOT ROAD ASSETS PORTFOLIO UNDER CONSTRUCTION ASSETS

Particulars 2/4 Laning of Rimuli-

Roxy-Rajamunda Section of NH 215

4 Laning of Solapur Maharashtra/

Karnataka Border Section of NH-9

2 Laning of Potin Pangin Section of

NH-229

Project Cost (Rs.crs) 972 883 1662

Project Type Toll Toll Annuity

Concession Period (Yrs) 19 25 17

Project Road Length (Km) 96 100 407

Project Lane Km 360 400 814

State Odisha Maharashtra Arunachal Pradesh

Awarding Authority NHAI NHAI MoRTH

Project COD June-18 Nov-16 54 months from appointed date




SEZ/INDUSTRIAL PARK




SAHAJ E-VILLAGE A Unique Public Private Partnership to bridge the Urban-Rural Digital Divide in India

EXTENSIVE RURAL DISTRIBUTION PLATFORM

• 27,931 CSCs across six sates – West Bengal(WB), Uttar Pradesh (UP), Bihar, Assam, Tamil Nadu (TN) & Odisha

• Covering 400 mn people (37% of India’s rural population)

Largest CSC Network in the country

• Robust technology platform offering real-time connectivity, efficient & quick service delivery

Technology Leveraging Operating Model

• Wide Bouquet of Products & Services across G2C, BFSI, B2C & Education services.

• Highly leveraged to offer wide range of products & services STATE No of Outlets

WB 6,579

UP 8,536

Bihar 5,528

Assam 2,896

TN 1,362

Odisha 3,030

Wide offering of Products & Services

SAHAJ LARGEST CSC NETWORK IN THE COUNTRY

• Easy to use, high quality technology platform • Spread of VLE touch-points • Focus on “Pull Services” with strong partners • Activation of G2C services across all states & increase financial inclusion

presence

McKinsey Operating Model for Growth


CURRENT & POTENTIAL PRODUCT & SERVICE OFFERGINS G2C B2C E-LEARNING NEW OPPORTUNITIES

NATURAL MONOPOLY WITH STRONG ENTRY BARRIERS

Exclusive mandate to operate CSC network across existing 6 states

Established back-end infrastructure with limited execution risk and strong scale-up

potential

Established partnerships and tie-ups with leading product & services companies

Strong experience and capabilities to effectively operate in rural conditions

SAHAJ A UNIQUE BUSINESS MODEL

Land records, Income & Caste Certificates, registration &

revenue collection, electoral services, employment exchange, passport, ration card, IT return, tax payments, certificates etc.

Life & General Insurance, Mutual Funds, Utility bills,

Mobile & DTH recharges, FMCG & FMCD, K12 Education,

Computer training, distance Computer education etc.

Financial Inclusion – BC White Label ATMs,

Remittances

Fabdeal, Amazon, Aadhar UIDAI / NPR, UTI PAN services, Water, ATM

etc


SAHAJ TECHNOLOGY LEVERAGED OPERATIONAL MODEL

G2C Service partners (State & Central) B2C Service partners (Financial Services’, Education, Health Services, Rural Media & CUPS

Cash

Services

Voucher based cash management

Real time monitoring and reconciliation

Data centre

Vouchers

VLE in CSC Village

Cash management and information flow addressed through real Time

Transaction and voucher based funds flow


SAHAJ KEY ALLIANCE PARTNERS




SEZ/INDUSTRIAL PARK




• Industrial Park near Kharagpur, West Bengal. • In partnership with West Bengal Industrial Infrastructure Development

Corporation (WBIIDC). • Total Project Area: 325 acres • Acquired Area : 128 acres

Industrial Park, Kharagpur ( Attivo Economic Zone, Kolkata)

Srei ventured into greenfield development of Special Economic Zones and Industrial Parks in 2008-09 to capitalise on India’s growing need for rapid industrial growth

• Biotech , IT / ITeS SEZ , residential units , commercial ,resort , etc, located on Alibag - Mumbai Road

• 60 Km from south Mumbai. • Total Project Area: 350 acres (Phase 1) • Acquired Area : 345 acres

Services & Education City , Mumbai ( Attivo Economic Zone, Mumbai )

• The total project area: 2518 acres. • 1,700 acres for industrial processing zone. • 818 acres for residential township / commercial and other non-processing

activities. • Phase 1 – 1104 acres launched • Fully acquired

Multi Product SEZ at Nanguneri, Tamil Nadu ( AMRL Hitech City )

SEZ & INDUSTRIAL PARKS KEY HIGHLIGHTS




SEZ/INDUSTRIAL PARK




ENVIRONMENT MANAGEMENT KEY HIGHLIGHTS

• Provides cutting edge solutions with world class technology to water and waste water management, solid waste management and recycling to both public and private sectors

Global Technology Partners

• Awarded with the prestigious Nangloi Water Supply (PPP) contract in Delhi, in partnership with JV partner Veolia Water

• The contract is of 15 years and around $ 85 million will be invested in the water treatment and distribution system.

• Project taken over during Sept 2013 from Delhi Jal Board (DJB) and is under implementation

Project Under Implementation

Business Model

Srei “Swach” project provides an integrated solution to water and waste water management, solid waste management and recycling


SREI INFRASTRUCTURE CONSOLIDATED BALANCE SHEET OVERVIEW

Net Worth 3,232 3,183 3,208 3,174 Borrowings 21,201 20,530 20,730 20,326 Interest Earning Assets 22,280 20,856 22,036 20,870 Investments 2,189 2,328 2,094 2,250 Other Assets 602 1,016 457 892 Key Ratios Dec-15 Dec-14 Sep-15 Mar-15

Return on Avg. Net Worth 2.6% 5.9% 2.6% 4.9%

Return on Avg. Assets 0.3% 0.6% 0.3% 0.5%

Leverage 5.8 5.7 5.7 5.7

EPS (Rs) (Annualised) 1.4 3.0 1.4 2.5Book value (Rs) 64.3 63.3 63.8 63.1

Balance Sheet Summary (Rs crs) 9MFY16 9M FY15 FY15H1 FY16


SREI INFRASTRUCTURE CONSOLIDATED INCOME STATEMENT HIGHLIGHTS

Income from Finance Activities 2,198 2,252 719 707 753 2,960 Income from equip. financing 863 878 299 297 289 1,160 Income from project financing 1,335 1,373 419 410 464 1,799 Finance charges (excl Forex Impact) 1,714 1,693 567 563 584 2,261 NII 484 558 152 144 169 699Non Interest Income Income from Fee Based Activities 42 66 6 21 24 161 Income from Equipment Rental 16 127 5 44 5 152 Income from Investments 1 6 0 1 1 57 Others 33 33 12 11 14 45 Net Income 577 789 176 221 213 1114Operating Expenditure 275 317 90 109 92 425 Provisions & Write offs 203 269 53 72 92 487 PBT before Forex M2M 99 203 33 39 29 202 Forex M2M 18 19 5 6 10 13 PBT 81 184 28 32 19 188PAT (after Minority) 52 116 17 24 12 129

FY15Q3 FY16 Q2 FY16Income Statement (Rs crs) 9M FY16 9M FY15 Q3 FY15


Disclaimer In this communication we have disclosed certain forward-looking information to enable investors to comprehend our future prospects and take informed investment decisions. This report and other statements – written and/or verbal - that we periodically make/publish contain forward-looking statements that set out anticipated results based on the management's plans and assumptions for future growth and development of the organizations. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expects, projects, intends, plans, believe, and words of similar substance in connection with any discussion of future performance. We do not guarantee, warrant and/or recommend, express or implied, as to the accuracy or completeness of such assumptions and that these forward-looking statements will be realized, although we believe we have been prudent in assumptions which are subject to dynamic changes. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Prospective investors are recommended to take there decisions based on interpretations and assumption of such published forward looking statements. . We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Moreover, neither we or any other company or subsidiary of the Srei Group, nor any of its officers, directors or employees accept any liability or responsibility in respect to the information or any assumptions expressed herein. The information contained herein has been prepared exclusively for informational purposes and is not an offer or solicitation of an offer to buy/sell the securities/instruments mentioned or to participate in any trading strategy or an official confirmation. This is not a research but it may refer to a research analyst/research report.. Information is subject to change without notice and we may not update this. Past performance is not indicative of future returns. This price information (if any) is provided solely for informational purposes and may differ substantially from price information available from other sources or an actionable price.

Amit Agarwal AVP – Investor Relations Srei Infrastructure Finance Ltd. Tel: + 91 33 6602 3003 Email : [email protected]

Sanjeev Sancheti Chief Strategy Officer Srei Infrastructure Finance Ltd. Tel: + 91 33 6602 3003 Email: [email protected]

FOR ANY FURTHER QUERIES, PLEASE CONTACT:

Ammeet Sabarwal Dickenson Seagull IR Mobile: +91 9819576873 Email : [email protected]

mailto:[email protected]



Documents

INVESTOR PRESENTATION DEC 2015 - Srei Investor Update_Dec15... · S. Chatterjee Member of the Board of Directors of Nabil Bank, ... Analysis • Group ... SREI Equipment Finance Pvt