overview of jaypee group - jp...

1

Investor PresentationDecember 2014

Overview of Jaypee Group

2

Jaiprakash Associates Limited (JAL)

Corporate Structurep ( )

E&CCement – 19.45 MTPA

Real Estate & Hospitality Listed company

BOO Power Infrastructure 60.72%

Cement

Jaiprakash Power Ventures Ltd (JPVL)

71.64%

Bhilai SAIL JV 2.2 MTPA #

Jaypee Infratech Limited (JIL) #

165 Km long expressway with 443 mn sq ft Real Estate Development

74%

Jaiprakash Power Ventures Ltd (JPVL)400 MW Vishnuprayag HEP #

500 MW Bina TPP #

1,320 MW Nigrie TPP (UI)$

100%

p(Yamuna Expressway)

Himalayan Expressway Limited #

(NHAI BOOT P j t)

Jaypee Cement Corporation Limited100%99%

Himachal Baspa Power Co. Ltd.@

300 MW Baspa – II HEP #

1000 MW Karcham Wangtoo HEP #

Balaji Cement (NHAI BOOT Project)

Jaypee Sports Int’l Limited. (Formula-1) #100%

Prayagraj Power Generation Co. Ltd.(1)(1)1980 MW Bara TPP – 1980 MW (UI)*86%

Jaypee Powergrid Limited214 KM Long Transmission System#74%

j(5 MTPA) #

Jaypee Fertilizers & Industries Limited (JFIL) #

(Fertilizer Plant at Kanpur)100%

3 SPVs for executing an aggregate capacity of 5900 MW

214 KM Long Transmission System#74%

3

$ 660 MW Unit-I COD on 3rd Sept, ‘14* UI - Under Implementation

# In Operation(1)(1) JAL has a right to subscribe up to 26% equity in this project Projects where disinvestment recently announced@ Projects under transfer to new entities through Scheme of Arrangement

Market Cap. (02nd Dec’ 14) – JAL INR 72.37 Bn (USD 1.21 Bn); JPVL INR 38.14 Bn (USD 0.64 Bn) ; JIL INR 28.96 Bn (USD 0.48 Bn)

Demonstrated Execution Capability of JAL –Completed HEPs Generating 9840 MW between 2002-2011p g

JAL is the leader in the construction of multi-purpose river valley and hydropower projects and has been involved in construction of major engineering projects over the last 4 decades

Dulhasti390 MW

PROUD TO PARTICIPATE IN:PROUD TO PARTICIPATE IN:

Baghalihar I **450MW

Karcham Wangtoo1000 MW

Nathpa Jhakri1,500 MW

Chamera II**

Baspa-II*300 MW

Vishnuprayag*400 MW

Tehri1,000 MW

Largest Concrete Dam in India – Sardar Sarovar

Largest Rockfill Dam in

Largest Concrete Dam in India – Sardar Sarovar

Largest Rockfill Dam in

Teesta510 MW

,500

Chamera II300 MW

BHUTAN

Largest Rockfill Dam in India – Tehri

Largest Underground Powerhouse in India–

Largest Rockfill Dam in India – Tehri

Largest Underground Powerhouse in India–

Sardar Sarovar1,450 MW B A Y O F

B E N G A LOmkareshwar**

520 MW

Tala1,020 MW

Powerhouse in IndiaNatpha-Jhakri

Second Largest Surface Powerhouse in India –

Powerhouse in IndiaNatpha-Jhakri

Second Largest Surface Powerhouse in India –520 MW

Indira Sagar1,000 MW

Indira-SagarIndira-Sagar

4

Projects completed between 2002-2011

*BOO projects

**EPC contracts

JPVL’s Business Overview

5

Power Capacity in Operation/ Under Advanced Stages of Implementationp

S.N. Project State Fuel Capacity (MW)

PPA(MW)

Merchant(MW) Equipment Supplier VER / CER

Current CapacityCurrent Capacity

1. Baspa-II H.P. Hydro 300 300 - VA Tech (Austria), Voith (Germany), Alstom (France) 1.00 Mn VERs

2. Karcham Wangtoo H.P. Hydro 1,000 704# 296 VA Tech (Austria), Voith (Germany), Areva (France) 3.35 Mn CERs

Sub Total (Divested Assets) 1,300 1,004 296( ) , ,

3. Vishnuprayag U.K. Hydro 400 400 - Alstom (France) 1.32 MnVERs

4. Bina Phase –I M.P. Thermal(Coal Linkage) 500 350 150 BHEL (India)

5 Nigrie (Unit-I) M P Thermal 660 248 412 L&T-MHI (India/Japan)5. Nigrie (Unit-I) M.P. Thermal 660 248 412 L&T MHI (India/Japan)

Sub Total 1,560 998 562

Total (Operational Capacity) 2,860 2,002 858

By Jan 2015 *

6. Nigrie (Unit II) M.P. Thermal 660 248 412 L&T-MHI (India/Japan) 0.8Mn CERs*

By Oct 2015 *

B Ph I7. Bara Phase – I (Units 1, 2 & 3) U.P. Thermal

(Coal Linkage) 1,980 1,782 198 BHEL (India), Alstom (France), Siemens (Germany) 1.5 Mn CERs*

Sub Total (Capacity after divestment) 4,200 3,028 1,172

Grand Total 5 500 4 032 1 468Grand Total 5,500 4,032 1,468

6

* Management Estimates

# Tariff petition filed with CERC. Sale of energy under PPA commenced for Haryana w.e.f. 1st May’14, for UP w.e.f. 1st June’14, for Rajasthan w.e.f. 1st Oct, ‘14 and for Punjab to commence soon.

Definitive document for disinvestment signed with JSW

Thermal Hydro Mix & Merchant Power Capacityy p yThermal : Hydro Mix of Power Capacity *

Saleable Generation in Mus *

YearMerchant(MU)

PPA(MU)

Total(MU)

90%100% 87% 77% 77%48%

10%

FY 2012 2,249 3,111 5,360 (A)

FY 2013 3 542 3 172 6 714 (A)

0% 13% 23% 23%52%

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Merchant vs. PPA *

FY 2013 3,542 3,172 6,714 (A)

FY 2014 4,145 4,073 8,218 (A)

Thermal Hydro

FY 2015 4,236 8,663 12,899 (E)

FY 2016 8,407 18,158 26,565 (E)100%57% 47% 50% 73%

73%

50%42% 53% 50%33% 32%

100%

58% 47% 50%67% 68%

* All figures assuming disinvestment of Baspa II HEP & KWHEP by June’ 15

53% 50%

27% 27%

33% 32%

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Merchant PPA

77

Optimal off-take arrangements to ensure balance between steady locked-in cash flows (PPA) and upside from merchant tariffs.

All figures assuming disinvestment of Baspa II HEP & KWHEP by June 15

Nigrie TPP - 2X660 MW – Progress ReportAs on 30th Sept 2014

g g p

Nigrie STPP - Unit - I - Progress Report

Nigrie STPP - Unit II - Progress Report

Balance of Plant 100% 0%

Completed Balance Work

Balance of Plant 87% 13%


TG

ESP

Balance of Plant

100%

100%

0%

0%

TG

ESP

Balance of Plant

99%

97%

1%

3%

B il

Mill Bay & Bunker Structure

TG

100%

100%

100%

0%

0%

0%

Boiler

Mill Bay & Bunker Structure

97%

100%

3%

0%

Structural Steel Fabrication

Boiler

100%

100%

100%

0%

0%

0%

Concrete


98%

100%

2%

0%

Commissioned on3rd Sept’ 14 Jan-15Target

Commissioning

Concrete 100% 0%

Total Investment – INR 10,238 Crores (US$ 1,678 Mn)Equity Investment – INR 3,163 Crores (US$ 518 Mn)

Project Investment as on

30th Sept ’14

Nigrie TPP - 2X660 MW – Project Highlightsg j g g

Unit ‐II Boiler Light up on Oil done on 11th November ’14Unit ‐II Boiler Light up on Oil done on 11 November 14

Unit –II expected to be Synchronized to the grid on January ’15

Majhauli Railway Station at Amelia (North) commissioned in Apr ’14

Expected Commissioning : Unit I : Commissioned on 3rd Sept’ 14 ; Unit II : Expected by January’15

99

Bara TPP – 3x660 MW – Progress Reportg pAs on 31st Oct, 14

Bara STPP - Unit I - Progress ReportCompleted Balance Work

ESP

Balance of Plant

94%

80%

6%

20%

Bunker Structure

TG

ESP

96%

100%

%

4%

0%

%


Boiler including Mill Bay

92%

94%

92%

8%

6%

8%

Target April - 15 for June – 15 for Oct – 15 for

Concrete 92% 8%

Project Investment as on

30th Sept ’14

TargetCommissioning

Total Investment – INR 10,703 Crores (US$ 1,755 Mn)Equity Investment – INR 2,823 Crores (US$ 463 Mn)

pUnit I Unit II Unit III

1010

30th Sept ’14

Remarks

q y , ( $ )

• FSA for 6.95 MTPA signed with NCL on 29th August, 2013 • Project lending led by SBI Bank

Bara TPP – 3x660 MW – Progress Report Contd..g pAs on 31st Oct, 14

Bara STPP - Unit 2 - Progress Report

Bara STPP - Unit 3 - Progress Reportp


ReportCompleted Balance Work

TG

ESP

99%

93%

1%

7%

TG

ESP

98%

92%

2%

8%

Bunker Structure

TG

89%

99%

11%

1%

Bunker Structure

TG

91%

98%

9%

2%

Boiler including Mill Bay 78% 22% Boiler including Mill Bay 78% 22%

Concrete


95%

99%

5%

1%

Concrete


90%

100%

10%

0%

1111

Concrete

Financial Overview

12

Power Business – Summary of Project Status: Hydroy j y

Project Equity Invested Securitized Loan* Design Energy

Rs in Crs (In US$ Mn)

Project Equity Invested Securitized Loan (in Mus)

91 (80) 0 ( 2) 1 0 0Baspa 491 (80) 440 (72) 1,050

Vishnuprayag 509 (83) 775 (127) 1,774

Karcham Wangtoo 2,070 (339) 1,377 (226) 4,114

Total 3,070 (503) 2,592 (425) 6,938

13

* VHEP, Baspa and Karcham have been successfully securitized in FY’ 09, FY’ 10 & FY’ 14 respectively.

Power Business – Summary of Project Status: Thermaly j

P j t Total Equity Equity Balance Equity Design Energy

Rs in Crs (In US$ Mn)

Project Total Equity to be Invested Invested

As on 30th Sept’ 14

Balance Equityto be Invested

Design Energy(in Mus)

Bina 1,317 (216) 1,211 (199) 106 (17) 3,723

Nigrie STPP 3,463 (567) 3,163 (518) 300 (49) 9,239

Bara 4,021 (659) 2,823 (463)* 1,198 (197) 13,858

Total 8,801 (1,443) 7,197 (1,180) 1,604 (263) 26,820

*Out of the total capital deployed in Bara Project Rs 340 Crs (US$ 59 Mn) have been deployed by JAL

14

Out of the total capital deployed in Bara Project, Rs. 340 Crs (US$ 59 Mn) have been deployed by JAL.

Total equity investments made across the projects as on 30th Sept 2014 –~ INR 102.40 Bn (US$ 1.68 Bn)

Jaiprakash Power Ventures - Financial Performancep

ANNUAL HALF YEARIn INR Mn (US$Mn)

Particulars FY 2012 FY 2013 FY 2014 H1 FY 2015

Revenue 16,863(276)

22,908(376)

26,775(439)

19,884(326)

15 267 17 713 18 874 15 170EBIDTA 15,267(250)

17,713(290)

18,874(309)

15,170(249)

PAT 4,029 3,291 197 3,690*

Income Tax Benefit under section 80 (I) – A

B II Vi h K h W t & Bi TPP P j t li ibl f i t b fit d thi t f i d f

PAT (66) (54) (3) (60)

FX: 1US$ = INR 61

Baspa – II, Vishnuprayag, Karcham Wangtoo & Bina TPP Projects are eligible for income tax benefits under this act for a period of 10 years.

* The operational results during the current quarter / half year have been impacted on account of (i) Lower generation of energy at

Baspa, and Karcham Wangtoo HEPs in the current quarter as compared to corresponding quarter of previous year due to hydrology.

1515

p , g q p p g q p y y gy

(ii) The current revenue of 500 MW Jaypee Bina Thermal Power Plant is based on provisional tariff, pending final tariff determination (iii)

Higher interest on Corporate loans facilities to fund on going projects in the absence of Company's ability to raise equity due to market

conditions prevailing in the recent past.

Selected financial information

Particulars JPVL

Balance Sheet Rs mn (US$ mn)

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Net worth 33,778 (554)

51,706(848)

54,650 (896)

64,443 (1,056)

63,297 (1,038)

Secured & 53 746 120 681 148 124 180 084 205 414Secured & Unsecured Debt

53,746 (881)

120,681(1,978)

148,124 (2,428)

180,084 (2,952)

205,414 (3,367)

Net Fixed A t 48,405 122,035 160,408 203,367 223,618Assets (including WIP)

48,405(794)

122,035(2,000)

160,408 (2,630)

203,367(3,334)

223,618 (3,366)

Capital E l d

77,895(1 277)

172,388 (2 826)

202,769 (3 324)

248,460 (4 073)

266,818 (4 374)Employed (1,277) (2,826) (3,324) (4,073) (4,374)

Book Value / Share(in Rs/share

11.52 (0 19)

24.67 (0 40)

20.82 (0 34)

21.97(0 36)

21.54 (0 35)

1616

(in Rs/share US$ /Share)

(0.19) (0.40) (0.34) (0.36) (0.35)

Fx: 1 US$ = INR 61NB: JPVL in FY ’10 was Baspa II HEP + Vishnuprayag HEP + Nigrie TPPwhereas in FY ’11 post-amalgamation was Baspa II HEP + Vishnuprayag HEP + Nigrie TPP + Karcham Wangtoo HEP + Bina TPP

Way Forward

17

Salient Features of JSW Deal

Preface

The proposed share securities purchase agreement contemplates the purchase of all securitiesincluding the entire equity share capital and debt instruments of JPVL’s subsidiary, namely, HimachalBaspa Power Company Limited (HBPCL) by the purchaser i.e., JSW Energy Limited, subject to thePreface p p y ( ) y p , gy , jsatisfaction of certain conditions precedent. The consideration amount from the Purchaser shall beapproximately Rs.9700 crores subject to mutually agreed adjustments.

The consummation of the transaction is subject to the satisfaction of conditions precedent, some of

Conditions Precedent

which are listed below:Approval of the scheme of arrangement by the court for the transfer of two of JPVL’s operatingpower plants namely, 300 MW Baspa-II Hydro-Electric Plant and 1091 MW Karcham WangtooHydro-Electric Plant to HBPCL as a going concern and on a slump-exchange basis, and thescheme becoming effective;Precedent scheme becoming effective;Transfer and/or amendment of licenses/clearances in the name of HBPCL;Receipt of lender consents, third party and government consents for the transaction;Receipt of approval from the Competition Commission of India;

ApprovalsThe transaction is subject to the approvals of shareholders, creditors, High Court, SEBI, stockexchanges, the Competition Commission of India, other statutory and governmental authorities andcertain third parties.

Transition& Assistance by JPVL

JPVL has agreed to provide for a period of one year from the Closing Date, such assistance, supportand cooperation to the Purchaser as may be required by the Purchaser on terms mutually agreedterms.

1818

Scheme of Arrangement with JSW: Statusg

S.No. Particulars Date

1 Board meeting to get appro al of Draft Scheme 15th No ’ 141. Board meeting to get approval of Draft Scheme 15th Nov’ 14

2. Filing of draft scheme and other documents with Stock Exchanges / SEBI

22nd Nov’ 14

Already Held

Already Filed

3. Approval by Stock Exchanges / SEBI 5th Jan’ 15

4. Filing of 1st motion petition with High Court of Himachal Pradesh

7th Jan’ 15

5. Order on 1st motion petition and approval by High Court and dispatch of notices to shareholders / creditors

9th Jan’ 15

6. Dispatch of notices to shareholders / creditors 15th Jan’ 15

7. Convening of meetings of shareholders and creditors 14th Feb’ 15

8. Filing of reports with High Court 17th Feb’ 15

9. Filing of 2nd motion petition 24th Feb’ 15

10. Court hearing 27th Mar’ 15

1919

11. Receipt of certified copy of order 15th Apr’ 15

12. Filing of order with ROC 15th May 15

CONFIDENTIAL

Term Loan (Debt) Status – Pre & Post Divestment

Debt Debt * Debt *

Rs. in Crs In US$ Mn

Name of the Project Debt as of 30th Sept,’14

Debt as of 31st March, ’15 as of 30th June, ’15

(Post Disinvestment)

Baspa II 532 (87) 501 (82)Baspa II 532 (87) 501 (82) -

Vishnuprayag 973 (159) 791 (129) 743 (122)

K h 5 397 (883) 5 364 (877)Karcham 5,397 (883) 5,364 (877) -

Bina 2,019 (330) 1,929 (315) 1,883 (308)

Nigrie 7,075 (1,157) 7,273 (1,189) 7,230 (1,182)

Nigrie CGU 50 (8) 200 (33) 200 (33)

Corporate 5,124 (838) 4,845 (792) 3,089 (505)

Total 21,170 (3,462) 20,903 (3,418) 13,145 (2,150)

20* Management Estimates Debt/Equity as on 30th Sept’ 14 – 3.19;Debt/ Equity as on 30th June’ 15 – 1.87

CONFIDENTIAL

Movement of Debt in the coming yearsg y

Particulars TotalDebt as on 31st Mar’ 15

Rs. in Crs (US$ in Mn)

Debt as on 31 Mar 15Project (A) 16,058 (2,626)Corporate (B) 4,845 (792)

Total (A+B) = C 20 903 (3 418)Total (A+B) = C 20,903 (3,418)LessDebt Transfer to JSW

( ) ( )Baspa II (D) 501 (82)

Karcham Wangtoo (E) 5,364 (877)

Total (D+E) = F 5,865 (959)(C‐F) = G 15,038 (2,459)

Repayment during the Yearp y gProject (H) 819 (134)Corporate Loans (I) 2,285 (374)

Total (H+I) = J 3,104 (508)

21

Total (H+I) J 3,104 (508)Debt as on 31st Mar’ 16 (G ‐ J) = K 11,934 (1,952)

Likely Debt /Equity as on 31st March’ 16 – 1.74

CONFIDENTIAL

Coal Capacity – Thermal Power Projectsp y j

N f th P j tCoal Qty required for the

P j t Coal Linkage*Name of the Project Project(MTPA)

Coa age(MTPA)

CCL – 0.713Bina 2.40 SECL – 0.829

Total - 1.542Amelia – 2 50

Nigrie @ 5.00Amelia 2.50

Dongri Tal – 2.70Total - 5.20

Bara 8.43 NCL – 6.95

Total 15.83 13.69

22

* Remaining Coal Requirement to be bought from e-auction/ washeries/ imported coal.@ Currently tied up with the Dedicated Coal Blocks. Since these coal blocks have been cancelled, the company will be bidding for the new coal blocks in the auction process.

CONFIDENTIAL

Coal Block Cancellation

The Supreme Court in a decision given on September 2014 has cancelled the allocationof 204 out of the 218 blocks that various governments since 1993 had allocated tocompanies for captive consumptioncompanies for captive consumption.

6 months breathing time was granted to the mining companies to wind up theirg g g p poperations and the govt was told to hold auctions by 31st March’ 15.

Companies which had utilized coal from these captive blocks were asked to pay aCompanies which had utilized coal from these captive blocks were asked to pay apenalty of Rs. 295 per tonne.

The govt has since brought out an ordinance to make coal block allocation transparent.

C ( ) OThe government has since brought out “The Coal Mines (special Provisions) Ordinance,2014” to ensure continuity in mining operation and for promoting optimum utilization.

2323

CONFIDENTIAL

Salient Features of Coal Auction ProcessThe 74 coal blocks covered in Schedule II (42 nos.) and Schedule III (32 nos.) have been earmarked for allotment to Government sector and for auction.

The Nominated Authority will fix reserve price for Government blocks and Floor price for auction based on technical information/recommendation.

A company engaged in specified end use including a company having a coal linkage shall be eligible to bid.

The Tender process shall include technical bid and financial bid. The tender document will specify the weightage to be applied for technical bid and the financial bid for the purposes of determination of the successful biddersuccessful bidder.

The Nominated Authority will specify the maximum number of mines and/or coal reserves that may beallocated to one or more persons.

f f fThe participants in the tender process shall be required to make payment of tender fee on the basis of the geological reserves.

Upon completion of public auction process the Nominated authority shall forward itsrecommendations to the Central Government with regard to the selection of successful bidder Centralrecommendations to the Central Government with regard to the selection of successful bidder. CentralGovernment may direct the Nominated authority to issue a Vesting Order in favour of the successfulbidder.

The time frame given for Request for proposal is Dec 22, 2014 and issue of Allotment letters to winners

2424

g q p p ,is Mar 16, 2015.

JPVL WILL ACTIVELY PARTICIPATE IN COAL AUCTION FOR ITS THERMAL CAPACITIES.

Reforms in Power Sector

Finance ministry has appointed committee under IIFCL Chairman Mr.Santosh B Nayar, to recommendmeasures to revive investments stuck power projects wherein investment to the tune of ` 6.2 lakhcrore is stranded.

The Committee has proposed allowing banks and lenders a one-time dispensation to provide easierrefinancing norms for all viable projects, irrespective of their loan size.

One-time shift of all stressed but competitively bid projects to a regulated tariff regime that may evenOne time shift of all stressed but competitively bid projects to a regulated tariff regime that may evenenable banks to consider sharing a part of the burden by partially converting their debt into equity

The committee has also proposed setting up of a separate government entity to assess projectThe committee has also proposed setting up of a separate government entity to assess project viability and prepare a detailed project report to ensure funding for key projects is not choked.

P I d d h i i i d f i h h h i h iPower Industry under the new govt is receiving renewed focus with through on sorting out the issuesplaguing the industry.

2525

The govt believes that for GDP to grow, infrastructure including power sector needs to get back ontrack.

Reforms in Power Sector

It was observed by the Govt appointed Committee headed by Sh S B Nayyar that power plants arefacing challenges like coal & gas shortage, delay in obtaining regulatory approvals, low offtake bydi t ib ti i t i i b ttl k hi h i t t t d d i i tidistribution companies, transmission bottlenecks, high interest rate and rupee depriciation .

The committee has made their recommendations to the govt which include the follows:g

a) Providing additional debt without the condition of bringing fresh equity

b) Lowering interest rates

) Restructuring loans without classifying them as non performing assetsc) Restructuring loans without classifying them as non – performing assets

d) Extending the loan repayment period to match cashflows of the projects.

It is believed that based on the above suitable packages are likely to be recommended for power plantsfacing these challenges.

Further, the govt is determined to make some sure that coal production in India double’s to ensure nofuel shortage is seen by power companies.

2626

POWER SECTOR REVIVAL IS ON TOP OF GOVT AGENDA

Shareholding Pattern* – Jaiprakash Power Ventures Limitedg p

S.N. Category JPVLAll figures in %

1 Promoters 63.60

2 Trust 11.71

3 FIIs 6.44

4 Mutual Funds 3 804 Mutual Funds 3.80

5 Bodies Corporate 4.66

6 P bli Fi i l I tit ti & B k 1 646 Public Financial Institutions & Banks 1.64

7 Public 8.16

TOTAL 100.0

No. of Shares (in Mn) 2,938

27

Face Value (Rs) 10/-* As on 31st October, 2014

THANK YOU

28

overview of jaypee group - jp...

Documents