gvk power & infrastructure limited meet/132708_20090501.pdf · project overview estimated...
TRANSCRIPT
Investor PresentationMay 2009
GVK Power & Infrastructure Limited
GVKPIL - Verticals
GVK POWER & INFRASTRUCTURE LTD
GVK Industries Ltd(217 + 220 MW)
Gautami Power Ltd(464 MW)
Alaknanda HydroPower Ltd (330 MW)
Goriganga HydroPower Ltd (370 MW)
GVK Power GoindwalSahib Ltd (540 MW)
Seregraha Mines Ltd(68 Mil Tonnes)
Mumbai InternationalAirport Ltd
GVK JaipurExpressway Ltd
GVK Perambalur SEZPvt Ltd
ENERGYTRANSPORTATION URBAN INFRASTRUCTURE
Holding Company Subsidiary Associate2
GVK Coal (Tokisud) Ltd(52 Mil Tonnes)
GVK Oil & Gas Ltd(7 Deepwater Blocks)
Current Breadth of Infrastructure Assets
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ENERGY
• Eight Power Projects – Gas, Hydro & Thermal
Ø Operational Capacity – 901 MW
Ø Capacity under construction – 1,240 MW
Ø Capacity under development – 1,500 MW
• Two Coal Mines –Reserves of 120 million tonnes
• 7 deepwater oil & gas blocks off the west coast ofIndia
TRANSPORTATION
URBAN INFRA
POWER MINES
• Developing India’s busiest airport – Mumbai
Ø Estimated Project Cost - $ 2 Billion
Ø Handling 23.4 million passengers annually
• India’s first 6 lane BOT expressway (90 km)
Ø Handling 6.9 million vehicles annually
Ø One of the first road project SPVs in Indiato share excess toll revenue with the NHAI
• 3,184 acre multi-product SEZ in Tamil Nadu
Ø 225 km from Chennai & 75 km from Trichy
Ø 2,882 Acres of land already registered
AIRPORTS ROADS
SEZs
OIL & GAS
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GVKPIL - The Growth Story
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Cumulative Asset Base of US $5.24 Billion
Cum
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Year of Financial Closure
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Revenues EBITDA PAT
GVKPIL – Financials FY 2009 (Consolidated)
FINANCIALRESULTS
YEAR ENDED MARCH, 2009
FY 2009 FY 2008 % CHANGE
Revenues 533.97 532.15 0.3%
EBITDA 118.54 170.12 - 30.3 %
PAT 107.56 135.47 -20.6 %
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Rs.
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FY 2008
FY 2009534
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170119 135108
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Power Road Others
GVKPIL Sector Wise Contribution to ConsolidatedRevenue –FY 2009
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Power 67%Power 60%Road 26%
Other Income6%
Other Income14%
Rs.
Cror
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FY 2008
FY 2009
320356
146
7532
FY 2009 FY 2008
137
Road 27%
TRANSPORTATION VERTICAL
Mumbai International Airport Ltd
PROJECT OVERVIEW
Estimated Project Cost Rs. 9,800 Crores
Completion Date December 2012
Concession Period 30 + 30 Years
Land 1,976 Acres
Target PAX Capacity 40 Million pa
Target Cargo Capacity 1 Million Tonnes pa
Revenue Sharing 38.7% with AAI
PARTNERS
GVKPIL 37%
South AfricanConsortium 37%
AirportsAuthority ofIndia
26%
HIGHLIGHTS
• OMDA was signed in April 2006 and the airport was handed over to MIAL in May 2006
• Project includes upgrading, modernizing, managing operations, etc of the airport• City side commercial development
• Master Plan for Modernization and Development in place• Non-clearance of encroached land will have no impact on the operational areas of the airport
• Stringent norms to meet international service standards
• Mandatory projects being completed as per schedule
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Integrated PassengerTerminal Sahar
SantacruzLow Cost Carriers
+Cargo Complex
(1million tonnes)
CSIA Master Plan
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MIAL - Key Contracts Awarded
CONTRACT AWARDED TO HIGHLIGHTS
EPC Larsen & Toubro
• Covers the new Integrated Passenger Terminal
(400,000 sq metres) & various airside works
• To be executed by December 2012
• Estimated contract value of Rs. 6,000 Crores
• Strict penalties for missing deadlines
Duty Free Shopping DFS, Singapore
• Awarded on January 10, 2008 for a period of 3 years
• Located within International Terminal 2C
• Spread over 24,541 Sq Ft
Retail Contract Multiple Retailers • At Terminal 1B (domestic & international brands)
Advertisement Rights Times InnovativeMedia Pvt. Ltd.
• For all advertisement locations at CSIA
• Contract for next 3 years
Architectural Design SOM, New York Architects for the Integrated Terminal
Program Management CH2MHill Responsible for review & oversight of the entire project– airside, landside and terminals
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MIAL – Revenue from Contracts
LICENSES FY 2009 FY 2008 % CHANGE
Oil Throughput 69.91 93.59 -25 %
Food & Beverages 38.39 29.91 28 %
Advertisements 51.81 39.00 33 %
Duty Free 74.59 23.49 218 %
Ground Handling 25.61 16.64 54 %
HIGHLIGHTS
Aviation fuel handled by IOC, BPCL and HPCL
F&B outlets such as Baskin Robbins, Café CoffeeDay, Yo! China, etc
Duty Free Shopping:
• Departure level – 14,585 sq ft
• Arrival level – 8,395 sq ft
• Storage – 1,560 sq ft
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Figures in Rs. Crores
MIAL - Slum Rehabilitation
Phased Rehabilitation in Line with Airport Development Requirements
PHASE TIME FRAME TARGET
Phase 1 6 - 36 months 158 Acres
1. (i) 6 - 18 months 78 Acres
1. (ii) 18 - 24 months 20 Acres
1. (iii) 24 - 36 months 60 Acres
Phase 2 36 - 48 months 118 Acres
TOTAL Upto 48 months 276 Acres
HIGHLIGHTS
Acreage under encroachment - 276
Estimated: ~ 65,000 hutments, ~ 300,000 inhabitants
Contract signed with HDIL for slum rehabilitation in October,2007
No cash outflow for MIAL
HDIL entitled to development rights over 65 Acres of thecleared encroached land in the 2nd Phase
HDIL rights are contingent on fulfillment of all its obligationsunder the contract with MIAL
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MIAL – Commercial Real Estate Opportunities
HIGHLIGHTS
20 million Sq Ft of development planned
Master Plan including structure for development to befinalized by December 2009
Estimated timeframe for development – over 10 to 15 yearsbeginning March 2010
Development of a ‘Destination City’ to cater to every possiblerequirement of passengers and visitors
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MIAL – Operational Highlights
PARTICULARS FY 2009 FY 2008
INTERNATIONAL
Aircraft Movements per Day 180 169
Passenger Movements (Million) 8.12 7.98
DOMESTIC
Aircraft Movements per Day 443 468
Passenger Movements (Million) 15.32 17.88
TOTAL (INT+DOM)
Aircraft Movements per Day 623 637
Passenger Movements (Million) 23.44 25.86
CARGO
Cargo Handled (Metric Tonnes) 530,278 533,588
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MIAL – Financial Highlights
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PARTICULARS FY 2009 FY 2008 % CHANGE
RevenueAeronautical 375.29 366.57 3.5 %Non Aeronautical 389.42 314.73 23.7 %Cargo 181.11 173.05 4.7 %Interest & Dividend 9.27 2.48 273.8 %
955.10 856.83 11.5 %
ExpenditureAnnual Fee to AAI 369.62 331.59 11 .5%Operating & Admin Expenses 384.09 307.21 25.0%
753.71 638.80 17.9 %
EBITDA 201.39 218.03 -7.4 %Interest 27.32 19.69 38.8 %Depreciation & Amortization 39.95 25.39 57.3 %
Profit Before Tax 134.12 172.95 -22.5 %Taxes 48.85 62.92 -22.4 %Profit After Tax 85.27 110.03 -22.5 %
Figures in Rs. Crores
MIAL - Integrated Passenger Terminal
* Artist’s Impression
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MIAL - Integrated Passenger Terminal
* Artist’s Impression
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GVK Jaipur Expressway Ltd
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PROJECT OVERVIEW
Location of Project Jaipur-Kishangarh stretchof National Highway – 8
Project Cost Rs. 623 Crores
Grant from NHAI Rs. 211 Crores
D/E Ratio 70:30
Completion Date April 2005
Concession Period 20 Years (from 2003)
Length of Highway 90.385 km
Revenue Sharing40 % with NHAI onadditional revenueearned beyond projection
RESULTS’ HIGHLIGHTS
• Increase in Total Income attributable to:Ø 6.6% growth in Toll RealizationØ 24% increase in Other Income
• 22.5% increase in PAT attributable to:Ø Increase in realization per vehicleØ Increase in Other IncomeØ Reduced Tax Liability due to 80IAbenefits
FINANCIALRESULTS FY 2009 FY 2008 % CHANGE
Gross TollRevenue 145.87 136.86 6.6 %
NHAI Share ofToll 7.65 7.83 -2.3 %
EBIDTA 110.45 110.64 -0.17 %
PAT 53.46 43.64 22.5 %
Figures in Rs. Crores
ENERGY VERTICAL
GVK Industries Ltd – Jegurupadu Phase I
2020
PROJECT OVERVIEW
Capacity 217 MW Mixed Fuel Plant
Commissioning Date 1997
Project Cost Rs.1,025 Crores
D/E Ratio 70:30
PPA Agreement 18 Years with APDISCOM
Debt Fully repaid in July 2007
Tariff Structure Two part tariff with posttax ROE of 16% pa
RESULTS’ HIGHLIGHTS
• 9.6% increase in Total Income attributable tousage of naphtha
• Reduction in profit attributable to:Ø Lower Other Income – GuaranteeCommissionØ Lower depreciation recoveryØ Higher station hear rate
FINANCIALRESULTS FY 2009 FY 2008 % CHANGE
Income 357.90 326.42 9.6 %
EBIDTA 65.35 89.88 -27.29 %
PAT 7.28 29.63 -75.4 %
Figures in Rs. Crores
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GVK Industries Ltd – Jegurupadu Phase II
PROJECT OVERVIEW
Capacity 220 MW Dual Fuel Plant
COD 14th April 2009Project Cost Rs. 964 Crores
D/E Ratio
Original project cost ofRs. 723 Crores was 100%debt financed; balancewas funded by internalaccruals from JP1
PPA Agreement 15 Years with APDISCOM
Merchant Sale 20% power to be sold onmerchant basis
GAS SUPPLY HIGHLIGHTS
• Gas Supply Agreement with GAIL for gas and for RLNG (till May 2009)
• GSA with RIL for gas till March 2014
• RLNG received from 14th April 2009• RIL gas received from 24th April 2009
• RIL gas price approx $ 5.2 / million BTU (Rs 1.90 per unit - a pass through)
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Gautami Power Ltd
PROJECT OVERVIEW
Capacity 464 MW Dual Fuel Plant
Commissioning Date End of May 2009
Project Cost Rs. 1,935 Crores
D/E Ratio 70 : 30
PPA Agreement15 Years with APDISCOMfor 80% of installedcapacity
Merchant Sale 20% power to be sold onmerchant basis
GAS SUPPLY HIGHLIGHTS
• Gas Supply Agreement with GAIL for gas and for RLNG (till May2009)
• GSA with RIL for gas till March 2014
• RIL gas price approx $ 5.2 / million BTU (Rs 1.90 per unit - a passthrough)
HIGHLIGHTS
• Plant under commissioning by ALSTOM (EPCcontractor)
• GT1, GT2, steam turbine, generatorssynchronized with AP grid
• Performance Acceptance Test & Reliability Runexpected by May 2009
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Alaknanda Hydro Power Ltd
PROJECT OVERVIEW
Capacity 330 MW
Commissioning Date July 2011
Approved ProjectCost Rs. 2,698 Crores
D/E Ratio 80 : 20
PPA Agreement 30 + 20 Years with UPPCL
Tariff Structure2 part tariff with assuredpost tax ROE of 14% +incentives
CONTRACTS AWARDED
• VERTEX – Civil works contract
• BHEL – Electro-Mechanical works
• Precision Engineers – Hydro-Mechanical works
• SMEC – Detailed Engineering Consultants
• L&T – Formwork & Reinforcement
HIGHLIGHTS
• Financial closure achieved in Aug 2007
• 12% of output to be given free to Uttarakhandstate
• Project being evaluated for carbon credits
• 30.38 Ha of free hold land & 90.92 Ha of Govtland acquired
• Substantial progress made in power house,fore bay, dam, de-silting basin & power channel
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GVK Power Goindwal Sahib Ltd
PROJECT OVERVIEW
Capacity 540 MW
Commissioning Date April 2012
Approved ProjectCost Rs. 2,988 Crores
D/E Ratio 80 : 20 (Expected)
PPA Agreement 25 Years with PSEB
Tariff Structure2 part tariff with assuredpost tax ROE of 14% +incentives
HIGHLIGHTS
• 1,067 acres of land acquired & ground breaking ceremony performed by Hon’ble Chief Minister of Punjab
• Environmental Clearance obtained from Ministry of Environment & Forests & Punjab Pollution Board
• BTG contract awarded to BHEL and BOP contract awarded to Punj Lloyd
• Mandate for syndication of debt given to IDBI Bank Ltd
• Coal to be sourced from captive mines (Tokisud & Seregraha) in Jharkhand
• Financial closure expected by Q2 of FY 2010
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Goriganga Hydro Power Ltd
PROJECT OVERVIEW
Capacity
200 MW – Mapang-Bogudiyar170 MW – Bogudiyar-Sirkaribhyol
Commissioning Date 2014Estimated ProjectCost Rs. 2,275 Crores
D/E Ratio 80 : 20 (Expected)
Type of Project Run of the River HydroPower Project
Power Off-take Merchant Power
HIGHLIGHTS
• Letter of Award issued to WAPCOS for preparation of DPR, submission expected in June 2009
• Letter of Award issued to EQMS for preparation of EIA, expected in July 2009
• Project to be constructed at approximately 7,500 to 9,500 feet above Mean Sea Level
• Approach road being built with Border Roads Organization
• 12% of output to be given free to Uttarakhand state
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GVK Coal (Tokisud) Ltd
PROJECT OVERVIEW
Mineable Reserves 52 million tonnes
Commissioning Date April 2010 (Expected)
Location Hazaribagh, Jharkhand
Estimated ProjectCost Rs. 280 Crores
D/E Ratio 80 : 20
Coal SupplyAgreement
Supply 2 million tonnesper annum to GoindwalSahib plant
HIGHLIGHTS
• Mine Plan approved by Ministry of Coal
• Environmental Clearance granted by Ministry of Environment & Forests in Sept 2008
• Grant of Mine Lease approved by Govt. of Jharkhand in Jan 2009
• Entire 926 acres acquired for compensatory afforestation and 20 acres of non forest land acquired for proposed railwaysiding
• LOI for construction of bridge on Damodar river issued
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Seregraha Mines Ltd
PROJECT OVERVIEW
Mineable Reserves 68 million tonnes(GVKPIL’s share)
Commissioning Date April 2013 (Expected)
Location Latehar, Jharkhand
Estimated ProjectCost
Rs. 232 Crores(GVKPIL’s share)
D/E Ratio 80 : 20
Coal SupplyAgreement
Supply 1 mil tonnes perannum to Goindwal SahibThermal Power Plant
HIGHLIGHTS
• Jointly allocated with Arcelor-Mittal
• GVKPIL’s share of the mineable reserves is 45%
• Prospecting License has been applied for
URBAN INFRASTRUCTURE VERTICAL
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GVK Perambalur (SEZ) Private Ltd
PROJECT OVERVIEW
Size of SEZ 3,184 acres
Commissioning Date July 2012 (Expected)
Location Perambalur district inTamil Nadu
Project Cost Rs. 850 Crores(Estimated)
Targeted Industries Auto ancillaries, leather,textiles, etc
Technical Consultants Mahindra ConsultingEngineers Ltd.
HIGHLIGHTS• BOA has granted the formal approval in December, 2008
• Government land alienation in the name of TIDCO is in progress
• SENSES Consultants retained for environmental studies & obtaining clearance from Ministry of Environment & Forests
• 2,882 acres of land acquired
• Contour & topography studies completed by Apex Topomappers Pvt. Ltd.
• 40 MLD water supply from Kollidam river sanctioned by TWAD Board
THE ROAD AHEAD
GVK – The Road Ahead
3131
• MIDC Bhadrawati 1,200 MW Power Project – Prequalified with YTL
• DB Power 1,200 MW Thermal Plant – Due Diligence going on
• 690 MW Hydro Project in J&K – RFQ submitted
• Submitted EOI to Coal India Ltd in JV with Singareni Coallieries Co. Ltd. for 200 milliontonnes Hindegir coal block in Jharkand
• Venturing into large coal mine development & operations including coal logistics, coalwashing and generation of power from washery rejects
• Exploring opportunities in Oil & Gas Sector
• Developing 7 deepwater blocks awarded in NELP - Round VII
• Partnered with BHP-Billiton, the world’s largest diversified resources company
POWER
MINING
OIL & GAS
GVK – The Road Ahead (contd.)
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• Right of First Refusal for the greenfield airport in Navi Mumbai, India
• Preparing for upcoming bids – India, Europe, Latin America, UK
• Scouting for investment opportunities in existing international airports with attractivetraffic profile & strong economic prospects
• Submitted RFQs for 8 road projects
• Preparing to bid for MSRDC project – Tolling projects for Mumbai entry roads
• New Delhi Railway Station – Submitted RFQ
• Bangalore Airport High Speed Rail Link – Preparing to submit RFQ
AIRPORTS
ROADS
METRO RAIL
GVK – The Road Ahead (contd.)
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• Tie-up with GE to explore possibilities in water management across India
• Shortlisted for ONGC-Dahej water treatment & supply
• Preparing to bid for desalination project in Kutch
WATER TREATMENT
• EOI submitted to CIDCO for Kharghar Theme Development
• Developing a ‘Destination City’ around the Mumbai Airport with amenities to cater topassengers and visitors. For instance:
Ø Hotels including convention & business centres
Ø Banking and ATMs
REAL ESTATE
• MoU signed with Gujarat government for developing one greenfield port
• MoU signed with Gujarat government for mechanization of Okha port
• Preparing to bid for container development terminal at JNPT port
• Submitted RFQ for container terminal development Chennai port
PORTS
GVKPIL - A Compelling Investment
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KEY STRENGTHS
PROVEN TRACK RECORD• Consistent dividend paying track records
• Diversified asset base
• Recipient of numerous international awards forperformance, pollution control & efficient businesspractices
FINANCIAL PERFORMANCE• Zero debt in GVKPIL
• Superior returns on capital employed
• Diversified revenue base
• Resource mobilization capability
MANAGEMENT• Abundant experience at developing, building &operating diverse infrastructure projects
• Ability to take on & successfully execute complexprojects
• In-House talent nurtured to take on leadership rolesin new projects
• Scalability in challenging timelines
CURRENT INITIATIVES• Foraying into Non-Conventional Energy
• Pursuing inorganic growth avenues
• Exploring sound business opportunitiesinternationally
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