gvk power & infrastructure ltd meet/132708_20100222.pdf · company overview key highlights...

1

Investor PresentationFebruary 2010

GVK POWER & INFRASTRUCTURE LTD

Company Overview

KEY HIGHLIGHTS PORTFOLIO BY ASSET SIZE (PROJECT COST)

KEY COMPETITIVE ADVANTAGES REVENUE# (Q3 FY 2010) BY ASSET CLASS

q Listed on BSE/NSE since February 2006

q First QIP in May 2007, second QIP in July 2009

q Market Capitalisation of Rs. 7.11 Bn

q Total Revenue# (FY09) Rs. 8.67 bn

q Current operations in Power Generation, Roads & Airports

q Projects under development - Power Generation, Coal Mining,Oil & Gas exploration & SEZ

q Exploring opportunities in water, ports & power transmission

GrowingPortfolio

BalancedPortfolio

CompetitiveBidding &

Negotiation Skills

InnovativeFinancing

Timely ExecutionSkills

Vast Experienceof Operating

Assets

# Consolidated revenue, including 37% of MIAL revenue on a proforma basis

* As of 29 Jan, 2010

ThermalPower26%

HydroPower19%

Oil & Gas1%Coal Mines

3%Road2%

Airports46%

SEZ3%

74%

18%8%

1%

33%

47%

18%

2%

Power Airport Road Others

Q3 FY 2010 Q3 FY 2009

GVKPIL – Assets at a Glance

Figures in brackets show shareholding and capacity respectively

Operational Under Construction/Development

GVK POWER & INFRASTRUCTURE LTD

GVK Industries Ltd(100%) (217 + 220 MW)

Gautami Power Ltd(54%) (464 MW)

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

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

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

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

Mumbai International Airport Ltd(37%)

Bengaluru International Airport Ltd(29%)

ENERGY AIRPORTS HIGHWAYS & URBAN INFRA

GVK Coal (Tokisud) Company Pvt.Ltd (100%) (52 Mil Tonnes)

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

GVK Jaipur Expressway Private Ltd(100%)

GVK Perambalur SEZ Pvt Ltd(100%)

Strong Track Record of Growth

Jun 97JP-I commissioned

Jun 97JP-I commissioned

Jan 02Captive coal block‘Tokisud’ awarded

Jan 02Captive coal block‘Tokisud’ awarded

Apr 05Commissioned JKEL 6 months ahead of

schedule

Apr 05Commissioned JKEL 6 months ahead of

schedule

Jan 06IPO of Rs 2,500 mn (USD 53

mn) @ Rs 31.0 per share

Jan 06IPO of Rs 2,500 mn (USD 53


Oct 06Construction of Gautami completed

Oct 06Construction of Gautami completed

Apr 06GVK-consortium won MIAL

Apr 06GVK-consortium won MIAL

Oct 07Slum rehab contract awarded to HDIL

Oct 07Slum rehab contract awarded to HDIL

Dec 08Awarded 7 deep water NELP VII blocks

Dec 08Awarded 7 deep water NELP VII blocks

Jan 08Captive coal block

‘Seregarha’ awarded

Jan 08Captive coal block

‘Seregarha’ awarded

Nov 08Land purchase ofPerambalur SEZ

completed

Nov 08Land purchase ofPerambalur SEZ

completed

May 07QIP of Rs 12,410 mn (USD

262 mn) @ Rs 32.5 per share

May 07QIP of Rs 12,410 mn (USD

262 mn) @ Rs 32.5 per share

Sep 07Corporate restructuring &amalgamation completed

Sep 07Corporate restructuring &amalgamation completed

AHEAD OF THE CURVEAHEAD OF THE CURVE

q Among the first Independent PowerProducers (IPPs) in India (1993, JP-I)

q Among the first operational 6-lane BOTprojects in India. One of the fewpositive government grant projects(2003, JKEL)

q One of the first airport privatizationprojects (2006, Mumbai Airport)

PowerTransportation

CorporateUrban Infra

Oct 09Acquired management &

operational control in BengaluruInternational Airport

Oct 09Acquired management &

operational control in BengaluruInternational Airport

July 09QIP of Rs 7,168.5 mn (USD 150


July 09QIP of Rs 7,168.5 mn (USD 150


Diversified Infrastructure Portfolio

q Six Power Projects – Gas, Hydro & Thermal

Ø Operational Capacity – 901 MW

Ø Capacity under construction/development – 1,240 MW

Ø Two Coal Mines – Estimated Reserves of approx. 119 milliontonnes

q Exploring 7 deepwater oil & gas blocks off the west coast of India

POWER MINES

q Developing two of India’s busiest airport – Mumbai & Bengaluru

Ø Handling a combined total of 32.12 million passengersannually (FY 09)

q India’s first 6 lane BOT expressway (90 km)

Ø Handling 6.98 million vehicles annually (FY 09)

Ø One of the first road project SPVs in India to share excess tollrevenue with the NHAI

q 2,604 acre multi-product SEZ planned in Tamil Nadu

Ø 2,882 Acres of land already purchased for SEZ and DTA

Ø Targeted industries include leather tanneries, chemicals,textiles, agro processing, small engineering, etc

Ø 225 km from Chennai & 75 km from Tiruchirappalli

Ø Adjacent to NH-7

AIRPORTS ROAD

OIL & GAS

SEZ

ENER

GY

TRA

NSP

ORT

ATI

ON

URN

AN

INFR

AST

RUCT

URE

GVKPIL Financials – Q3 FY 2010

KEY FINANCIALS (Rs. Mn) SECTOR WISE REVENUE (Rs. Mn)

Q 3 FY 2010 Q 3 FY 2009

SECTOR WISE – CONSOLIDATED REVENUE

4735

1407.8

4581043.4

436.6 223

Revenue EBITDA PAT

Q3 FY 2010 Q3 FY 20094262

1014442

31648

930364

31

Power Airport Road Others

Q3 FY 2010 Q3 FY 2009

Power89%

Road9% Others

2%

Power57%

Road31%

Others12%

ENERGY

GVK Industries Ltd

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PROJECT OVERVIEW

PHASE 1 PHASE 2

Capacity 217 MW Mixed Fuel Plant 220 MW Dual Fuel Plant

CommissioningDate

20th June 1997 14th April 2009

Project Cost Rs.10,255 Mn Rs. 9,183.7 Mn

PPAAgreement 18 Years with APDISCOM

15 Years with APDISCOMfor 80% of installedcapacity

TariffStructure

2 part tariff with post taxROE of 16% pa

Capacity Charges (BidVariable) + Fuel Charges

Merchant Sale NA 20% Installed Capacity -Expected

PHASE 1 Q3 FY 2010 Q3 FY 2009 9M FY 2010 9M FY 2009

Income fromOperations

861.5 648.0 2750.3 2302.3

Cost of Fuel 546.2 394.8 1845.0 1459.0

EBITDA 154.5 154.0 471.3 530.2

PAT 18.2 5.5 46.3 88.3

Figures in INR Mn

Q3 FY 2010 HIGHLIGHTS

• Phase 1:• PLF for Q3 FY 2010 – 82.99%; YTD FY 2010 – 89.06%• 32.9 % increase in Income from Operations due to:

Ø Higher generation & incentive recovered• Change in PAT attributable to:

Ø Incentive considered – INR 60.3 MnØ Major maintenance expenditure - INR 54.3 MnØ Lower depreciation recovery – INR 14.0 Mn

• Phase 2:• PLF for Q3 FY 2010 – 97.2%• PLF for YTD FY 2010 – 97.04%• Presently plant is receiving 100% of its gas requirement(1.1 MMSCMD) from Reliance

PHASE 2 Q3 FY 2010 9M FY 2010

Income fromOperations

1181.8 3448.6

Cost of Fuel 794.5 2334.9

EBITDA 303.3 881.3

PAT 43.3 107.7

Gautami Power Ltd

FINANCIALRESULTS Q3 FY 2010 YTD FY 2010

Net IncomefromOperations

2218.9 5423.2

Cost of Fuel 1398.7 3502.5

EBITDA 640.2 1580.0

PAT 103.2 269.4

PROJECT OVERVIEW

Capacity 464 MW Dual Fuel Plant

Commissioning Date 5th June 2009

Project Cost Rs. 19,350 Mn

PPA Agreement15 Years with APDISCOM for 80% ofinstalled capacity

Tariff Structure Capacity Charges (Bid Variable) + FuelCharges

Merchant Sale 20% Installed Capacity - Expected


• PLF for Q3 FY 2010 – 81.36%

• YTD FY 2010 – 88.31%

• Presently plant is receiving 100% of its gas requirement (2.3MMSCMD) from Reliance

Figures in INR Mn

Alaknanda Hydro Power Ltd

PROJECT OVERVIEW

Capacity 330 MW

Commissioning Date Q3 FY 2012 (Expected)

Approved Project Cost Rs. 26,977 Mn

Type of Project Run of the River Hydro Project

PPA Agreement 30 + 20 Years with UPPCL

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

HIGHLIGHTS

• Financial closure achieved in Aug 2007• 12% of output to be given free to Uttarakhand state• Project being evaluated for carbon credits• 29.6 Ha of free hold land has been acquired out of 31.85 Ha• Lease Agreement for government land executed with Govt of Uttarakhand for 76.4 Ha out of 90.9 Ha• Excavation of Power House, Forebay, De-silting basin, Right & Left Flanks and foundation of the dam almost complete• All major contracts awarded:

Ø BHEL – Electromechanical worksØ Vertex – Civil WorksØ Precision Engineers – Hydro-Mechanical Works

GVK Power Goindwal Sahib Ltd

HIGHLIGHTS

• Amended & restated PPA executed on 25 May 2009 with PSEB

• 1,067 acres of land acquired

• Environmental Clearance obtained from Ministry of Environment & Forests & Punjab Pollution Board

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

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

• Coal Transportation Agreement signed with Indian Railways

PROJECT OVERVIEW

Capacity 540 MW

Commissioning Date FY 2013 (Expected)

Financial Closure Achieved on 1st Feb 2010

PPA Agreement 25 Years with PSEB

Tariff Structure As per CERC norms

GVK Coal (Tokisud) Ltd & Seregarha Mines Ltd

TOKISUD - HIGHLIGHTS

• Mine Plan approved by Ministry of Coal

• Environmental Clearance granted by MoEF

• Forest Clearance approval awaited

• Mine Lease approved by Govt. of Jharkhand

• Entire 926 acres acquired for compensatory afforestation

• 490 acres of non forest land acquired for mine site

• LOI for construction of bridge on Damodar river issued

• DPR for railway siding approved by Easter Central Railway

TOKISUD - PROJECT OVERVIEW

Mineable Reserves 52 Mn Tonnes

Start Date October 2010


Location Hazaribagh, Jharkhand

Coal Supply2 million tonnes per annum toGoindwal Sahib thermal power plant

Coal Pricing Structure Coal India Ltd rates minus gradediscount

SEREGARHA - HIGHLIGHTS

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

• Prospecting License has been applied for

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

transfer of Mineral Rights

SEREGARHA- PROJECT OVERVIEW

Estimated Geological Reserves 66.7 Mn Tonnes - GVKPIL’s share

Start Date FY 2014 (Expected)

Project Cost Rs. 2,914 Mn (Estimated) – GVKPIL’sshare

Location Latehar, Jharkhand

Coal Supply1 million tonnes per annum toGoindwal Sahib thermal power plant

Coal Pricing Structure To be finalized

Goriganga Hydro Power Ltd

HIGHLIGHTS

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

• DPR received from WAPOC, being reviewed by state government

• Letter of Award issued to EQMS for preparation of EIA

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

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

• Approach road being built with Border Roads Organization

PROJECT OVERVIEW

Capacity170 MW – Bogudiyar-Sirkari Bhyol200 MW – Mapang-Bogudiyar

Commissioning Date FY 2015 (Expected)

Project Cost Rs. 22,750 Mn (Estimated)

Type of Project Run of the River Hydro Project

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

GVK Oil and Gas Ltd

WORK UNDERWAY

• Agreement with WesternGeco to hire seismic vessel

• Studying existing seismic data

• Identifying needed technical resources

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

PROJECT OVERVIEW

Blocks Awarded 7 Deepwater Blocks – Awarded UnderNELP VII

JV Partner BHP-Billiton

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

Location Off western coast of India

Area Awarded 34,000 sq km (Approx)

WORK PLANNED OVER NEXT 2 YEARS

• Obtaining approvals from various Government & Defence agencies

• Reprocessing existing 2D data & mapping of areas for new

information

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

well

AIRPORTS

Mumbai International Airport Ltd

Concession Award Date Apr 2006

Completion Date May 2013

Estimated Project Cost (Rs Mn) 98,000

Current Traffic (Mn. Pax) in FY 2009 23.44

Target Capacity ( Mn. Pax) 40

Current Cargo Tonnage (mtpa) in FY 2009 0.53

Future Cargo Tonnage (mtpa) 1 (by 2013)

Concession Period 30+30 Years

Revenue Share with AAI (%) 38.7%

Total Acreage 1,976

Land Available to MIAL for Commercial Real Estate Development (acres) 198

q Domestic Terminals 1-A & 1-B refurbished, 1-C expected to be ready by March 2010

q Mandatory Projects proceeding as per plan

q Received approval for ADF of Rs 15.43 bn over next 4 years

q Received 10% increase in aeronautical charges w.e.f. Jan 2009

q AAI employees migrated efficiently

q Real estate strategy finalized

MIAL OVERVIEW

KEY DEVELOPMENTS

REVENUE (Rs. Mn)

0100020003000400050006000700080009000

10000

FY 2007 FY 2008 FY 2009

Cargo

Non-Aero

Aero

29153666 3753

1687

3148

38941245

1731

1811

39%

87%

26%

5%

24%

2%

REVENUE FROM MAJOR LICENSES (Rs. Mn)

RETAIL LICENSE(NON-AERO) Q3 FY 2010 Q3 FY 2009

Oil Throughput 184.9 165.9

Duty Free 158.5 199.2

Advertisements 86.5 125.7

Ground Handling 64.7 60.7

Foreign Exchange 58.0 48.8

Food & Beverages 57.4 54.1

Flight Kitchen 30.5 10.5

5847

85459458

MIAL Project Highlights

CAPACITY AUGMENTATION ON TRACK

q EPC Contract – Awarded to L&T in Nov 07 for integrated passenger terminal (400,000 sq.m.) & airside works. Tobe completed by Dec 2012

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

q Taxiway & runway systems upgraded, Terminals 1-A & 1-B refurbished, all work packages awarded for 1-C, ATCsystems improved, integrated terminal construction underway

FINANCING ARRANGEMENTS IN PLACE

q Debt – Rs 42,310 Mn debt tied up; Rs 17,500 Mn drawn as on 31st Dec 2009

q ADF1 – Up to Rs 15,430 Mn approved by Government over a period of 48 months

q Equity – Commitment of Rs 12,000 Mn by MIAL shareholders, Rs 6,000 Mn already infused

DIVERSE REVENUE STREAMS

q Duty Free Shopping – Awarded to DFS Singapore in Nov 07 for 24,541 sq. ft. for 3 years

q Advertising Rights – Awarded to Times Innovative Media Limited for a period of 3 years

q Other Contracts – Retail, Car parking, Food & Beverage and other non-aero contracts awarded

UNLOCKING REAL ESTATE POTENTIAL

q Senior & highly experienced management / project teams in place

q Physical Master Plan prepared; estimated to unlock 0.5 mn sq ft of commercial space initially

q Cushman Wakefield Market study, HOK Master Plan Completed, HVS appointed for Hospitality Market study

¡ 1 integratedterminal

¡ 40 Mn passengers¡ 1 Mn tonnes cargo¡ 20 Mn sq ft of

commercial realestateT

A R

G E

T S

T A

R G

E T

S

(1) ADF = Airport Development Fee

MIAL – Operational & Financial Highlights

OPERATIONAL HIGHLIGHTS Q3 FY10 Q3 FY09

INTERNATIONAL

Aircraft Movements per Day 184 184

Passenger Movements (Mn) 2.21 20.7

DOMESTIC



TOTAL (INT+DOM)



CARGO

Cargo Handled (Metric Tonnes) 149,647 126,113

FINANCIAL HIGHLIGHTS Q3 FY 2010 Q3 FY 2009

Revenue

Aeronautical 1065.3 896.2

Non Aeronautical 993.6 1033.5Cargo 544.3 449.7Interest & Dividend 17.7 22.8

2620.8 2402.2

Expenditure

Annual Fee to AAI 1014.2 929.7

Operating & AdminExpenses 676.4 931.0

EBITDA 930.2 541.5Interest & Deferred Revenue

Expense Written Off 116.6 77.0Depreciation 168.2 107.9

Exceptional Items 0.00 95.7Profit Before Tax 645.4 260.9Taxes 228.8 95.2

Profit After Tax 416.6 165.8

Figures in INR Mn

Bengaluru International Airport Ltd

HIGHLIGHTS

• State Government financial support - grant of interest free loan of INR

3.5 Bn, repayable after 11 years of operations

• Land leased from KSIIDC for the project

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

• EPC function handled by Siemens and L&T

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

(Advertising), Globe Ground (Ground Handling), Oberoi Hotels (Business

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

PARTNERS

• GVKPIL – 29%

• Siemens – 40%

• KSIIDC – 13%

• AAI – 13%

• Unique Zurich – 5%

Commercial Operations Date 24th May 2008

Incurred Project Cost (Rs Mn) 22,000

Current Traffic (Mn. Pax) in FY 2009 8.8

Current Cargo Tonnage (mtpa) in FY 2009 0.16

Concession Period 30+30 Years

Revenue Share with AAI (%) 4%

Total Acreage 4,000

Land Available for Commercial Real Estate Development(acres)

515

PROJECT OVERVIEW

BIAL –Financial Highlights

FINANCIAL HIGHLIGHTS Q3 FY 2010 Q3 FY 2009 YTD FY 2010 YTD FY 2009

Revenue

Aeronautical 752.1 435.9 2179.6 1109.7

Non Aeronautical 389.7 341.8 1284.6 876.4

Other Income 43.6 0.2 113.7 9.3

1185.4 777.9 3577.9 1995.4

Expenditure

Annual Fee to AAI 47.2 31.1 142.6 79.8

Operating & Admin Expenses389.9 386.0 1159.9 1007.3

EBITDA 748.2 360.8 2305.3 908.3

Financing Costs 224.3 432.0 706.7 1161.6

Depreciation 338.8 603.8 1001.9 1449.9

Profit Before Tax 185.1 (675.0) 596.7 (1703.2)

Taxes 0.0 1.8 1.8 12.4

Profit After Tax 185.1 (676.8) 594.9 (1715.6)

Figures in INR Mn

BIAL – Operational Highlights

OPERATIONAL HIGHLIGHTS Q3 FY10 Q3 FY09 YTD FY 2010 YTD FY 2009

INTERNATIONAL

Aircraft Movements per Day 39 42 38 37

Passenger Movements (Mn) 0.50 0.45 1.45 1.23

DOMESTIC



TOTAL (INT+DOM)



CARGO

Cargo Handled (Metric Tonnes) 45,318 37,687 125,605 122,112

Figures in INR Mn

HIGHWAYS & URBAN INFRASTRUCTURE

Jaipur – Kishangarh Expressway Ltd

FINANCIAL RESULTS Q3 FY 2010 Q3 FY 2009

Toll Revenue 441.7 364.5

NHAI Share of Toll 42.1 19.0

EBIDTA 296.9 271.8

PAT 175.5 143.0

PROJECT OVERVIEW


Grant from NHAI Rs. 2,110 Mn

Commissioning Date April 2005

Concession Period 20 Years (From 2003)

Length of Highway 90.385 kms

Revenue Sharing40 % with NHAI on additional revenueearned beyond projection


• 21.18% Increase in Total Income attributable to:

Ø 17% increase in traffic on YOY basis

Ø Increase in Other Income due to investible surplus

• Change in PAT due to:

Ø Major maintenance expenditure

Ø Increase in revenue shared with NHAI

Ø Income from Sale of Investment

Figures in INR Mn

GVK Perambalur (SEZ) Private Ltd

HIGHLIGHTS

• Formal Approval granted by SEZ Board of Approval

• Government land alienation in progress

• Mahindra Consulting Engineers Ltd appointed Technical Consultants

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

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

• Contour & Topography studies completed by Apex Topomappers Pvt Ltd

• Soil Investigation Work completed by FS Engineers Pvt Ltd

PROJECT OVERVIEW

Planned Size of SEZ 2,604 Acres

Land Purchased 2,882 Acres – includes land acquiredfor DTA

Commissioning Date Q2 FY 2013 (Expected)

Project Cost Rs. 8,500 Mn (Estimated)

Location Perambalur District, Tamil Nadu

Targeted IndustriesLeather Tanneries, Chemicals,Textiles, Agro-Processing, smallengineering. etc

FOCUS AREAS

q Pursuing inorganic growth opportunities for power generation assets

q Exploring opportunities in water & sold waste management

q Submitted RFQs for road projects

q Right of First Refusal for the greenfield airport in Navi Mumbai, India

q Pursuing coal mining & development opportunities

q MoU signed with Gujarat government for mechanization of Okha port & developing one greenfield port

POWER ROADS WATER

The Road Ahead

THANK YOU

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

[email protected] Paropkari – Vice President, Investor Relations

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

[email protected]

mailto:[email protected]



gvk power & infrastructure ltd meet/132708_20100222.pdf · company overview key highlights...

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