CONFIDENTIAL
0
\\ssng14p20001\COVSEA$\IBDUSER\SINGAPORE\Temasek\Logistics Consolidation\Strategic Options for Logistics v9.ppt - Jul 07 2002 - 16:30 /0
CONFIDENTIAL | AUGUST 2009
Presentation
by
Jaiprakash Associates Limited
CONFIDENTIAL
1
Disclaimer
This presentation contains statements that constitute “forward looking statements” including, without
limitation, statements relating to the implementation of strategic initiatives, and other statements
relating to the Company’s future business developments and economic performance. All statements
regarding the expected financial condition and results of operations, business, plans and prospects of
the Company are forward-looking statements.
These forward-looking statements include statements as to the Company’s business strategy, the
Company’s revenue and profitability, planned projects and other matters discussed in this
presentation regarding matters that are not historical fact. These forward-looking statements and any
other projections contained in this presentation (whether made by the Company or any third party)
involve known and unknown risks, uncertainties and other factors that may cause the Company’s
actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements or other
projections.
The Company undertakes no obligation to publicly update or revise any of the opinions or forward
looking statements expressed in this presentation as a result of new information, future events or
otherwise.
Exchange Rate: 1 USD = 48 INR
CONFIDENTIAL
2
1. Company Overview
CONFIDENTIAL
3
Corporate Structure (Post Amalgamation of Power Cos.)
BOO Power Infrastructure
Jaypee
Infratech
Limited
96.9%
Cement
Himalayan
Expressway
Limited
100%
4.3 MTPA
Joint Ventures
Coal Mining
Coal Mining JV
with State Govt.
For 1320 MW
Thermal Power
Jaiprakash Hydro Power Limited*(300 MW-Hydro – Baspa – II -in Operation)
(400 MW-Hydro-Vishnuprayag- in Operation
(1320 MW Thermal – Under Implementation)
76.25%
JKHCL (1000 MW
-Karcham
Wangtoo Project
Jaypee
Powergrid
Limited
74%
Arunachal
Projects
(3200MW)
Meghalaya
Projects
(720MW)
74%
89%
Jaypee
Ganga Infra.
Corp. Limited
100%
Bina Power
(1250MW)
100%
Cement – 29.25 MTPA
Jaiprakash Associates Limited*
E&CReal Estate & Hospitality
(Yamuna Expressway Project)
55.36%
(44.64% held by
JAL)
Market Cap. (30 July ‘09) - JAL: INR 33,678 Crs (US$ 7.02 Bn.); JHPL: INR 4,065 Crs (US$ 847 Mn.);
* Listed Company
UP Power
Projects
(5280 MW)
100%
To be renamed
JPVL
CONFIDENTIAL
4
2. Infrastructure and Real Estate
a) Leading Infrastructure Company in India
b) 54% share in 10th Five year plan Hydropower
Projects
c) 165 km Expressway connecting Noida to Agra with
400 Million sq feet Real Estate Development
d) 1,047 km Expressway connecting Noida to Ballia
with 3.3 Billion sq feet Real Estate Development
e) Developing South Asia‟s first Formula-1 Circuit
CONFIDENTIAL
5
The Leading Infrastructure Company in India
•BHUTAN
Baghalihar II
450MW
Sardar Sarovar
1,450MW
Karcham-Wangtoo
1,000MW
Alimineti Madhava
Reddy Project (51 Km Long Tunnel)
E&C Projects
under
execution
Sidhi – Thermal Power
1320MW (2X660MW)
Yamuna Expressway
165 km
Zirakpur-Parwanoo
Toll road- 27 km
Roads&
Real Estate
Thermal Power
PROUD TO
PARTICIPATE IN:
Largest Concrete Dam
in India – Sardar
Sarovar
Largest Rockfill Dam
in India – Tehri
Largest Underground
Powerhouse in India–
Naptha-Jhakri
Second Largest
Surface Powerhouse
in India – Indira-Sagar
Ganga Expressway at 1,047 km, the largest
infrastructure project in the country at
Rs 60,000 Crs (US$ 12.5 Bn) is to be executed by JAL
Jaypee Greens
Real Estate
Bina Thermal Power 1250
MW (5X250MW)
PARTICIPATION ON EPC/CONTRACT/BOO BASIS TO ADD 8840 MW TO THE NATION
BETWEEN 2002-2008
Karchana – Thermal Power
1980MW (3X660MW)
Bara – Thermal Power
3300MW (5x660MW)
CONFIDENTIAL
6
AGRA
MATHURA
DISTRICT
AGRA
DISTRICT HATHRAS
SADABAD
DISTRICT MATHURA
TAJ ECONOMIC ZONEDISTRICT ALIGARH
INTERNATIONAL
AIRPORT
HARYANA
CHHATA TAHSIL
GAUTAM BUDH NAGAR
GREATER
NOIDA
NOIDA
5
432
1
Yamuna Expressway Project
NEW DELHI
165 km long 6 Lane Access Controlled Expressway connecting Noida to Agra
Estimated total cost: Rs. 9,739 Crs. (US$ 2.02 Bn.)
Rights to concessionaire for 36 years
Ribbon development of 25 Million Sq Mtrs of land along the Expressway
Five or more locations (one location either Noida or Greater Noida)- 90 year lease
LAND FOR DEVELOPMENT AT 5
LOCATIONS
TOTAL – 6250 ACRES
TO BE DEVELOPED BY JAL
GREATER NOIDA TO AGRA – YAMUNA
EXPRESS TO BE DEVELOPED BY JAL
NOIDA TO GREATER NOIDA EXPRESSWAY
-COMPLETED
LEGEND :
PROPOSED METRO UPTO JEWAR
METRO Currently under Construction up to Noida City Centre
METRO extension proposed to planned Airport in JEWAR
SPORTS SDZ (1000 Ha.)
CONFIDENTIAL
7
Yamuna Expressway - Project Cost & Means of Finance
S.N. Description Rs. Crs
1 Cost of land – Expressway & Structures 900
2 Road Construction Cost 5,300
3 Preliminary, Preoperative & Contigencies 470
4 Interest during Construction 1,350
5 Cost of land – For development 1,719
Total 9,739
S.N. Description Rs. Crs.
1 Equity/ IPO/ Pvt. Placement 2,250
2 Inflows from Real Estate 1,489
3 Senior Debt/Term loan 6,000
Total 9,739
Project Cost
Means of Finance
CONFIDENTIAL
Yamuna Expressway – Progress as on 30.07.09
S.N. ActivityTotal Quantity
(Lac Cum)
On 30.03.08
(Lac Cum)%
On 30.07.09
(Lac Cum)%
1 Clearing & Grubbing 1,735 Ha 33.50 Ha* 2% 1160 Ha# 67 %
2Earthwork in
Embankment374.58 5.94 2% 210.48 56 %
3 Fly Ash 27.16 - - 5.94 22 %
4 Structural Concrete
a) Culverts 0.78 0.02 3% 0.30 38%
b)
Vehicular
Underpasses/CartTrack
Underpasses
2.54 0.04 2% 0.43 17 %
c) Minor Bridges 1.67 - - 0.50 30 %
d) Interchanges 3.95 - - 0.67 17 %
8
* Possession On 30.03.08: Land For Expressway 160 Acres
Land For Development 914 Acres
# Possession On 30.07.09: Land for Expressway 3,991 Acres
Land for Development 1,175 Acres
Work is continuing in the entire stretch of 165 km
Amount spent on Yamuna Expressway Project as of 30 July „09 – Rs. 4,617 Crs
CONFIDENTIAL
JPSK Sports SDZ – 1000 Hectares Development Opportunity
9
Promoted by JPSK Sports Pvt. Ltd., a subsidiary of
Jaiprakash Associates Limited.
1,000 Ha Sports Special Development zone, located
11 km from Zero Point of the upcoming Yamuna
Expressway. 850 Ha land in possession.
Facilities to include a Formula 1 Race Track &
Hockey Stadium in 350 Ha. with an estimated
investment of Rs. 1,700 Crs
First F-1 Race scheduled in 2011.
Circuit being designed by World
Renowned architect “Hermann Tilke”.
Architectural design has been finalized.
Preconstruction activities have begun at
site.
Opportunity to develop 650 Hectares of
Real Estate. Master plan being prepared by
WATG.
CONFIDENTIAL
10
1,047 Km expressway
35 year concession period
Rights of development of an estimated 30,000 acres of land along the Expressway
3.3 Bn. Sq. Feet Built-up Area
Ganga Expressway Project
CONFIDENTIAL
11
Real Estate Development
Locations Proposed Development
1. Jaypee Greens 8 Mn Sq Ft
2. Yamuna Expressway 400 Mn Sq Ft
3. Ganga Expressway 3.3 Bn Sq Ft
Locations
Total Area Sold
till 30 Jun‟09
(Mn sq. ft.)
Collections
till 30 Jun ‟09
(In Rs. Crs)
Average
Realization
(Rs. /Sq. ft.)
1. Jaypee Greens 2.90 1,048 5,523
2. Yamuna Expressway 9.96 1,260 3,819
Total Area Sold in Apr - Jun ‟09 4.82 Mn Sq. Ft.
Total Area Sold in Apr - Jun ‟09(excl. Aman) 1.23 Mn Sq. Ft.
Jaypee Greens – Aman : Sold 3.59 Mn Sq. ft. in ONE DAY
CONFIDENTIAL
12
3. Power & Energy
a) Largest Private Sector Hydropower Developer
b) Coal Block supported Thermal Power
c) Transmission
d) Presence in Wind Power and Oil & Gas Exploration
CONFIDENTIAL
13
Power Business at a Glance
S.N. Project FuelCapacity
(MW)
Regulated
Tariff (MW)
Merchant
Power
(MW)
VERs/
CERsCOD
1. Baspa-II Hydro 300 300 - 1.00 Mn VERs 2003
2. Vishnuprayag Hydro 400 400 - 1.32 Mn.VERs 2006
3. Karcham Wangtoo Hydro 1000 800 200 3.35 Mn. CERs* 2011*
4. Bina Power Thermal 1,250 750* 500* - 2011**
5. Jaypee Nigrie Thermal 1,320 660* 660* 0.8 Mn. CERs* 2013*
6. Karchana Thermal 1,980 1,320* 660* 1.5 Mn. CERs* 2014*
7. Bara Thermal 3,300 2,045* 1,255* 2.5 Mn. CERs* 2014*
8. Lower Siang Hydro 2,700 1,350* 1350* TBD 2015***
9. Hirong Hydro 500 250* 250* TBD 2018*
10. Kynshi Stage -II Hydro 450 225* 225* TBD 2018*
11. Umngot Stage -I Hydro 270 135* 135* TBD 2018*
TOTAL 13,470 8,235 5,235
* Expected
** 500 MW Phase-I by 2011, *** 1200 MW Phase-I by 2015
700 MW in Operation, 8820 MW Under Development, & 3950 MW Under Planning
CONFIDENTIAL
14
Power Business – Summary of Project Status
Project Land Water Environment Clearance DPR/EPC Order Fuel PPA
Baspa II – 300 MW PROJECT IN OPERATION
Vishnuprayag –
400MWPROJECT IN OPERATION
Karcham Wangtoo –
1000 MW
20% Merchant
Lower Siang –
2700 MW-
Approval for pre-
constn activities
granted by MOEF
DPR submitted
to CEA 50% Merchant
Hirong –
500 MW- Same as above
Acres of
Canada
appointed for
DPR
preparation
50% Merchant
Bina Power –
1250 MW Being revalidated
GoMP-42%
40 % Merchant
Nigrie Thermal –
1320 MW 90% Acquired*
Final presentation
made to MOEF.
Approval expected
shortly.
GoMP – 37.5%
50%Merchant
Karchna Thermal –
1980 MW50% acquired** Applied for DPR prepared 33% Merchant
Bara Thermal –
3300 MW94% acquired** Applied for DPR prepared 38% Merchant
* Entire Plant land for Nigrie in posession
** Balance land expected shortly.
CONFIDENTIAL
15
Hydro Projects Delivering Returns in Excess of 30%
Particulars JHPL JPVL
FY 2008 FY 2009 FY 2008 FY 2009
Revenue (Rs. Crs.) 342.50 317.91 404.54 418.73
EBIDTA (Rs. Crs.) 317.38 294.49 377.86 378.86
PAT* (Rs. Crs.) 152.75 149.88 190.55 186.47
Paid Up Capital (Rs. Crs) 491 491 532.5 534.89
ROE 31% 31% 36% 35%
JHPL - Baspa–II HEP Awarded the Gold Shield by the Ministry of Power for outstanding
performance in 2007-08.
JHPL - Baspa – II HEP Accredited for 1 million VER‟s per annum.
JPVL – Vishnuprayag HEP awarded 1st Prize in “Excellence in Fast Track Power
Project Execution – Hydro” in the Indian Electrical and Electronics Manufacturers
Association (IEEMA) Power Awards 2008.
JPVL - Successfully securitized receivables from the Vishnuprayag HEP for Rs. 1,650
Crs.
JHPL – Baspa – II securitization of receivables is underway. Expected to net Rs. 1,100
Crores.
* PAT excludes extraordinary items
CONFIDENTIAL
16
4. Prominent Cement Manufacturer
a) Largest player in Central India
b) 22.80 MTPA capacity by FY 2010 with
• 252 MW captive power
• Captive coal blocks (in MP)
CONFIDENTIAL
17
Year CEMENT (Mn. Tonnes) CAPTIVE
POWER
PLANT
(MW)
Installed
CapacityProduction
FY-08 9.00 6.77 88 MW
FY-09 13.50 7.60 154 MW
FY-10 22.80 14.54 252 MW
FY-11 29.70 22.70 342 MW
FY-12 33.55 28.70 342 MW
Installed Capacity & Expected Production by year
CONFIDENTIAL
Cement Capacity Rollout by FY-12 (In Mn Tonnes)
18
Zone Name of Plant Existing FY-10 FY-11 FY-12 Total
Central Zone
Rewa Complex 7.00
14.75
UPCP 3.00
Sidhi 2.00
JP Super Dalla 1.00 0.75
Sikanderabad(G) 1.00
North Zone
Baga 1.50
6.20Bagheri(G) 2.00
Panipat(G) 1.50
Roorkee (G) 1.20
West Zone GACL 1.20 1.204.80
Wanakbori(G) 1.20 1.20
East Zone Bhilai JV 2.204.30
Bokaro JV(G) 2.10
South Zone Balaji 3.50 3.50
Total New Capacity 8.10 6.90 3.85
Total (in MTPA) 14.70 22.80 29.70 33.55 33.55
CONFIDENTIAL
19
Productivity gains through focus on principal components of cement
cost
Installation of modern pyro processing system in all the new
installations having lower coal consumption
MSW plant at Chandigarh to produce pallets for kiln firing at Baga
Recently allotted Mandla (North) & Mandla (South) Coal Blocks for
Cement business which will become operational from 2011
Expected coal cost at Rs 1600 PMT v/s Rs 2800 PMT at present
Cement Cost (%) Key Measures to Enhance Productivity/Contain Costs
Existing split location grinding/blending plants near the market &
flyash source have resulted in reduced freight cost.
New split location grinding/blending units at Panipat, Bagheri,
Roorkee, & Wanakbori which are close to consumption centres as
well as near source of fly ash
10 MTPA of the new capacity is entitled to various fiscal benefits.
10 year exemption on Sales Tax , Royalty & Electricity Duty on Captive
Thermal Power Plants for 3 MTPA UP Cement Project
10 year exemption on excise duty for 7 MTPA capacity at HP
24%
9%
11%
24%
19%
13%
Existing Captive Thermal Power Plants have reduced the power cost
from Rs 406 PMT in 2001-02 to Rs 293 PMT 2008-09.
Captive Thermal Power Plants installed at all new Cement plants
Cost of generation: Rs 2.75 per unit v/s Rs 4.50 per unit from grid
COAL COST
DISTRIBUTION
COST
TAXES &DUTIES
POWER
RAW
MATERIAL,
FLYASH
OTHERS
67%
100%
CEMENT COST DETERMINANTS
CONFIDENTIAL
20
5. Strong Financial Profile
CONFIDENTIAL
21
Details FY08 FY09Change
in %
FY09 (Apr-Jun)
FY10 (Apr-June)
Change in %
Net Revenue 4,274
(890)
6,152
(1,282)44%
1,195
(249)
2,117
(441)77%
EBITDA1,386
(289)
2,064
(430)49%
356
(74)
592
(123)66%
PBT843
(176)
1,251
(261)48%
191
(40)
268
(56)40%
EPS (Rs) (FV of Rs. 2) 5.42 6.46* 19% 0.91 1.31 44%
Rs. in Crs (USD in Mn)
Strong Financial Performance – FY 2009-10
Details JHPL JPVL (FY09)
Revenue 82.59 418.73
EBITDA 62.94 378.86
PAT 36.54 186.47
Interim Div. Declared - 20%
OPERATING SUBSIDIARIES PERFORMANCE IN FY 2010 (Ending June 30, 2009) Rs. in Crs
At expanded share capital post-amalgamation of 140.18 Cr shares. On original share capital, the EPS is Rs. 7.48.
CONFIDENTIAL
22
JAL – Projections
Rs Crores(Mn USD)
E&C Cement
EBITDARevenue
Real Estate
237598
1,1911,631
752
791
1,591
2,026
301
448
208
59
34
31
87
123
433
307
412
413
2008-
Actual
2009-
Actual
2010 2011
4,639
(966)
3,582
(746)
1,7302,891
4,825
6,9531,950
2,236
5,004
7,175
256
439
925
1,360
31
153
214
336
433
307
412
413
2008-
Actual
2009-
Actual
2010 2011
11,381
(2,371)
16,236
(3,383)
Others (including Div.)Hotels & Hosp.
6,152
(1,282)
2,064
(430)4,274
(890)
1,386
(289)
CONFIDENTIAL
23
• Number of Shares outstanding was 1401.80 Mn of Rs 2 each as of 24 July 2009
• FCCB-I Conversion at USD 97.94 Mn out of USD 100 Mn (97.94%) as of 24 July 2009
• FCCB-II Conversion at EURO 160.27 Mn out of EURO 165 Mn (97.13%) as of 24 July 2009
• FCCB-III Conversion at USD 4.5 Mn out of USD 359 Mn* (1.25%) as of 24 July 2009
(*The Company has bought back & cancelled FCCBs (Series III) of the face value of USD 41 Million )
Shareholding Pattern (July 24, „09)
Pre-Amalgamation Shareholding:
Promoters: 45.14 %, Public & Others: 54.86 %
Market Capitalisation (Rs. Crs)
33,678
26,353
11,69310,083
3,454
1-Apr-05 1-Apr-06 1-Apr-07 1-Apr-08 30-Jul-09
($ 720 Mn.)
($ 2.1 Bn.)($ 2.4 Bn.)
($ 7.0 Bn.)
Continuously Creating Shareholder Value
($ 5.5 Bn.)37.51%
12.57%
23.52%
10.63%
15.77%
Promoters
Trust
FII's
MF's/Banks
Public/PCB's
CONFIDENTIAL
24
6. Summary
CONFIDENTIAL
25
JAL Has Excellent Growth Opportunities
India’s strong consistent economic growth and infrastructure development
has provided JAL with tremendous opportunities
Engineering & Construction
Established track record as the leading hydropower E&C company
Clear competitive advantage
Immense growth potential in Indian hydropower
Power
Over 13,000 MW portfolio with 60:40 thermal-hydro mix and 40% merchant power
Expressways and Real Estate
India’s two largest expressway projects – Ganga Expressway and Yamuna Expressway
totaling 1250 km approx. to be executed by JAL
Construction opportunity in excess of Rs 650 Billion
400 Million sq feet of Real Estate development as part of development of 6250 acres of
land along Yamuna expressway.
3.3 Billion sq feet real estate development along the Ganga Expressway
Cement
New cement plants in fast growing markets of the North,Central,Eastern & Western Zones
will make JAL the 3rd largest cement group in India
Dominant low cost producer of cement
Strong cement demand in JAL’s natural marketing zone
CONFIDENTIAL
26
THANK YOU