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Investor Presentation
December 2015
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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
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Visionary Leadership Building Institution For Perpetuity…
THE GROUP HOLDING BOARD
GM Rao
Group Chairman
• Founder Chairman of the Group
• Over the last 33 years 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 for over
18 years
• 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
• 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 40 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
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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
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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
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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
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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
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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
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Business Overview
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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 18 years old with a Balance Sheet of INR 651bn [USD 11bn]
• 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)
11
Business Overview
AIRPORTS
~100 mn Passenger Capacity • 2 Domestic Airports in Delhi and Hyderabad
• 1 International Airport in Philippines : Mactan - Cebu Airport
ENERGY
~4,800 MW Power Generation Capacity • 3,000MW of Coal Based Plants
• 1,400MW of Gas Based Plants
• 180MW of Hydro Plant – under construction
• 25MW of Solar Plants / 3.4MW of Wind Power Plants
• 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
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Corporate Structure
97% 92.6% 100%
Promoter & Promoter Group
61.0%
FIIs 17.7%
MF & DIIs 7.9%
Others 13.5%
Shareholding
as on Sept 30,
2015 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) 85% Tambaram Tindivanam 100%
Chennai Power Plant (200 MW) 51% Pochanpalli 100%
Operational Gas based Projects Chennai ORR 90%
Kakinada Power Plant (235 MW) 100%
Vemagiri Power Plant (388 MW) 100% Ambala Chandigarh 100%
Rajahmundry Power Project (768 MW) 100% Hungund Hospet 51%
Operational Renewable Energy Projects Hyderabad Vijaywada 90%
Solar Power Project (25 MW) 100% Faruknagar Jadcherla 26%
Wind Power Projects (3.4 MW) 100% Tindivanam Ulundurpet 26%
Operational Transmission Projects
Aravali Line (96 kms) 100%
Maru Line (269 kms) 100%
Under Construction
Chhattisgarh Power Project (1,370 MW) 100%
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%
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Airport Sector
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GMR Airports: Assets
Three world class emerging markets airports
• World class airports - Aggregate capacity of ~100mn 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
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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 – H1FY16 22.8 mn Pax;
176,861 ATMs*
6.0 mn Pax;
50,076 ATMs*
4.1 mn Pax;
33,570 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
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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 Airport Tribunal
MoCA has directed AERA to adopt ‘Hybrid Till’ for tariff fixation
against the ‘Single Till’ mechanism approved by AERA earlier
• UDF collection started post DGCA notification restoring the
collection of Airport Charges with effect from 03 Nov’15
GHIAL’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 and for curtailment of pre-control period
losses by INR 1.8bn [USD 30mn]
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 existing 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
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DIAL Land Monetisation to unlock Higher Potential Returns
• Awarded development rights for 14 asset areas through competitive
bidding
− Developable area of 6.12 msf
• Security clearances received for aero city hotels
− Operations commenced for JW Marriott, Lemon Tree, Red Fox,
Holiday Inn and Ibis Hotel
− Novotel and Pullman are yet to be operational
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
• Hospitality District, the first phase of 45 acres of development,
constitutes of hospitality and commercial assets
• Initiated the next phase of land development
• RFQ issued for monetising 23 acres in Phase II
− 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 within FY16
Aerotropolis Phase - II : 23 Acres of Retail District
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Energy Sector
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Energy Assets
Indonesia - PT Barasentosa
Lestari
Bajoli Holi - GBHHPL
(180MW / Hydro)
Rajasthan - Maru (269 kms)
Rajasthan – Aravali (96 kms)
Kutch
(2.1MW/ Wind)
Chhattisgarh – GCEL
(1,370MW / Coal)
Warora - EMCO
(600MW / Coal)
Chennai - GPCL
(200MW / LSHS)
Gujarat Solar
(Patan) - GGSPPL
(25MW/Solar)
Kamalanga (Phase 1) -
GKEL
(1,050MW / Coal)
Kakinada - GEL
(235MW / Gas)
Rajahmundry - GREL
(768MW / Gas)
Vemagiri - GVPGL
(388MW / Gas)
Operational / Ready to
operate Assets
Legends:
1,878 MW in operation, 1,391 MW ready to operate & 1,550 MW under construction
Tirupur
(1.25MW/Wind)
Indonesia - Golden Energy
Mines
Projects Under Construction
Transmission Projects
Coal Mines
Operational 39%
Under construction
32%
Ready to operate 29%
Capacity by stage
Coal 63%
Hydro 4%
Natural Gas 29%
Others 5%
Fuel based capacity
4,819 MW 4,819 MW
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Coal Projects (3,000 MW) - Entering Phase of Stable Cashflows
COD
EMCO (600MW) Kamalanga (1,050MW) Chhattisgarh (1,370MW)
PPA
Fuel Linkage
PLF
Refinancing
Others
• First unit synchronised
• 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 H1FY16
• To improve once TANGEDCO (Tamil
Nadu) PPA (150MW) fullystarts
• PLF of ~63% in H1FY16
• Has improved as evacuation issues are
now resolved
• 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 in the
finalisation stage under 5/25 scheme
• Would lead to 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 56 MW power to
TANGEDCO has commenced; it would
be fully operational shortly
• Favorable order from CERC on
maintainability wrt tariff determination
petition for GRIDCO
• Awaiting hearing from CERC for
petition filed against Haryana for
“Change in Law”
• Transmission lines are completed and
charged
• Coal mining at Talabira started from
Aug’15
• Achieved CoD in March 2014 • Achieved CoD in September 2013
Project
Project Cost • INR 124bn [USD 2,071mn] • INR 65bn [USD 1,087mn] • INR 40bn [USD 667mn]
USD 1 = INR 60
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Ensured Fuel Security through owning 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 MT
Extractable Reserve 9 MT 92 MT
Mining Plan 3 MTPA 4 MTPA
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
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Gas Projects - Ready to Operate
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 45.9bn [USD 765mn]
Commencement
of Generation January 2008 June 2010 Based on Gas availability
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 - valid until Oct 2015
• 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)
• Post restart of gas supply through the RLNG
scheme, PLF in Q2FY16 stood at 22%
• 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)
• 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
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Key Policy Measures to Ensure Gas Availability
~1,400 MW gas based plants are idle due to non-availability of fuel
As per the gas subsidy proposal of GoI under the Scheme for Utilization Stranded Gas based power plants
− GAIL is appointed as ‘e-bid RLNG Operator’ and would supply gas to all stranded gas based power
plants to run the plants at a pre-determined PLF
− SEBs to pay fixed tariff
− Additional tariff would be subsidised by GoI through the Power System Development Fund (PSDF)
− Gas to be supplied at fixed cost to power producers
Recent gas policy has kick-started stranded gas based power projects
GMR has won gas for two of it’s power projects
GMR has won right to receive imported R-LNG for two of it’s power projects in both the first & second round of
Gas Auctions
Mechanism ensures a tariff of INR 6.14/unit - INR 4.7/unit from SEB and a subsidy support of INR 1.44/unit
from GoI through the Power System Development Fund (PSDF)
Based on first round of Auctions, Vemagiri Power Plant (370MW) commenced operation from 12 Aug 2015 and
is running at 25% PLF till end-Sep’15
In the second round of Auctions, both Vemagiri power project and Rajahmundhry power project (768MW)
would be operational during H2FY16 to run at 50% PLF
Humility | Entrepreneurship | Teamwork and Relationships | Deliver the Promise | Learning | Social Responsibility | Respect for Individual
Highway Sector
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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)
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Project Details
Project Name
Annuity Based Road Projects (285 kms) Toll Based Road Projects (446 kms)
GTAEPL TTTEPL 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% 51% 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 – –
Divested 74%
stake in Sep13
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
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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 5 large projects
‒ 1 Airport: Sabiha Gocken International Airport (SGIA), Turkey
‒ 1 Power project: Island Power Project, Singapore
‒ 2 Road projects: Jadcherla Expressway and Ulunderpet Expressway
‒ 1 Coal Mine: Eloff & Kendall Mines by Homeland Energy Group
• Released INR 38bn [USD 639mn] equity and reduced liabilities by INR 62bn [USD 1,030mn] through
divestments
Capital
Raising
• Total Capital Raised since FY08 - INR 133bn [USD 2.2bn] (excluding divestments)
• Raised INR 54.5bn [USD 908mn] in the last 24 months
o QIP of INR 14.8bn [~USD 250mn]
o Rights Issue of INR 14.0bn [~USD 233mn]
o Warrants of INR 5.7bn [USD 95mn], out of which 25% has been received
o FCCB of INR 20.0bn [USD 300mn]
USD 1 = INR 60
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Key Highlights - Past 24 Months (cont.)
Business
Verticals Update
Energy
• GMR Energy - Renegotiation completed with Private Equity Investors
• EMCO & 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 Tamil Nadu PPA (EMCO) - Commenced supply from Q3FY16 onwards
• Chhattisgarh project (GCEL) - Achieved synchronization with the grid for Unit I (685MW)
• Fuel Security - Achieved fuel security for both coal and gas based power plants
o Talabira Coal Mines - Coal production started from Aug’15 & is getting dispatch to GCEL
o Gas availability - Awarded gas supply to run Vemagiri (VPGL) and Rajahmundhry plant (GREL)
• VPGL - Commences operation post Gas Auctions from Aug 2015 and reported a PLF of 22% in Q2FY16;
has won gas supply for 50% PLF (Phase 2) during H2FY16
• GREL – Won right to receive imported R-LNG to run the plant at 50% PLF during H2FY16
• Refinancing of Operational projects - Group is refinancing the project debt to align the cash flows with
repayment schedule
o EMCO - Refinanced the project debt resulting in lower interest rate by 110bps along with principal
payment moratorium of 1.5 years and total loan tenure of 13.5 years
o Kamalanga - The refinancing of project debt under 5:25 is in final stage. It would lead to interest
rate reduction of ~100bps and moratorium of ~30months
• Upper Karnali Hydro project - Finalised and executed the Project Development Agreement for the
900MW hydro power project with the Nepal Govt in Sept’14
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Key Highlights - Past 24 Months (cont.)
Business
Verticals Update
Airport
• Delhi Airport - Raised USD 289mn through an international bond issue
• DIAL Real Estate - RFQ issued for monetising additional 23 acres for retail district
• Hyderabad Airport - Post MoCA‘s directive to AERA to adopt ‘Hybrid Till’ for tariff fixation, DGCA
recently issued a notification restoring the collection of Airport Charges with effect from 03 Nov’15
• Mactan Cebu Airport, Philippines - JV with Megawide Construction has been awarded the project for
airport rehabilitation, expansion and operation
• Maldives Airport - Arbitration Tribunal has ruled that unilateral termination of the concession agreement
by Govt. of Maldives 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
Highways
• Chennai ORR project - Operationalised w.e.f. June 2013
• Hungud Hospet project – Final (3rd) toll plaza operationalised w.e.f. May 2014
Urban Infra &
EPC
• Krishnagiri SIR - 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]
• Railway projects – GIL in consortium with Tata Projects & Kalindee Rail has won 2 projects on EPC in
Andhra Pradesh & Uttar Pradesh. The total value of projects is ~INR 6.6bn [USD 109mn]
• DFCC project - GIL led consortium has won two packages of Eastern Dedicated Freight Corridor project
worth INR 51bn [~USD 850mn]
USD 1 = INR 60
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Total Assets (INR bn)
16.6
24.8 25.9 25.5
17.6
FY12 FY13 FY14 FY15 H1FY16
75.9
82.6 86.4 88.9
60.6
FY12 FY13 FY14 FY15 H1FY16
Net Revenue (INR bn) EBITDA (INR bn)
Key Financial Indicators (Consolidated)
Debt Position as on 30 September 2015
Corporate Debt
INR 69bn 15%
Project Debt
INR 405bn 85%
Gross & Net Debt (INR bn) Sector wise Debt breakup Gross debt bifurcation
474.7
60.9
413.8
Gross Debt Cash &equivalents
Net Debt
Airport 22%
Energy 48%
Roads 10%
Others 5%
Corporate 15%
562.3
638.2
651.4
667.4 670.0
FY12 FY13 FY14 FY15 H1FY16
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• 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 – aim to reduce by ~50%
• 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
• Conversion of existing warrants by promoters
• IPO of GMR Energy Ltd
• IPO of GMR Airports Ltd
• Induction of strategic or financial partner in certain operational energy and highway projects
• Sale of balance stakes (26%) in each of Ulunderpet and Jadcherla road assets
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
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Energy Business
• Commencement of commercial operations of Chhattisgarh Power Project (1,370 MW)
• Improvement in PLF in coal based plants
• Reduction in losses & improved debt servicing of gas based power plants- through the recent gas policy
Delhi Airport
• Land Monetization
• Decision by the Appellate Tribunal on RE
• Treatment of security deposits at Delhi Airport
Hyderabad Airport
• Decision by the Appellate Tribunal on ROE and pre-control period losses
Male Airport
• Decision on Arbitration for cancelation of concession agreement
Focus for next 12- 18 Months (cont.)
Focus on stabilising projects and improve profitability
Operational Initiatives to improve Profitability
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Summing Up - Key Takeaways
Capex phase nearly 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 38bn [USD 633mn] equity and reduced
liabilities by INR 62bn [USD 1bn] 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 133bn [USD 2.2bn] since FY’08 (excl. divestments)
USD 1 = INR 60
Experienced Leadership and Management teams duly guided by the Group Performance Advisory Council
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Thank You
For further information, please visit
Website: www.gmrgroup.in or
Contact: [email protected]