Lanco Infratech Ltdlancogroup.com/pdf/ir/IR_PPT_ May14.pdf · Lanco Infratech Ltd ... EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal Power (3 x 660 MW) EPC

©LANCOGroup,AllRightsReserved© LANCO Group, All Rights Reserved

LancoInfratechLtd

InvestorPresenta>on

POWER EPC INFRASTRUCTURE SOLAR NATURAL RESOURCES

©LANCOGroup,AllRightsReserved

Agenda

2

1CompanyOverview

3IndustryOverview

4PowerBusiness

5EPCBusiness

7NaturalResourceBusiness

8InfrastructureBusiness

9PropertyDevelopmentBusiness

10ExperiencedManagementTeam

6SolarBusiness

2Financials


1.Mission,VisionandValues

Mission: Development of Society through Leadership, Entrepreneurship, Ownership

Vision: Most Admired Integrated Infrastructure Enterprise

Values: Integrity

Humility & Respect

Achievement Drive Accountability

Continuous Learning

Teamwork Organization before Self

3 Positive Attitude


1.India’slargestIntegratedPowerDeveloper

4

Infrastructure Property Development

Subsidiaries / Affiliates

Lanco Power Natural Resources Solar

Lanco Infratech Limited (LITL)

•  Listed Holdco of the group •  Promoters Holding ~ 70.2% •  Adj. Net Worth US $832 mn (including Minority)

•  AllbusinessesofthegroupareunderLITL•  Powerprojectsof9,358MWin12statesofIndia(4,722MW*underopera>on&4,636underconstruc>on)

*732MWge^ngreadyforopera>ons

EPC Construc>on

Thermal Hydro Roads Lanco Hills EPC

GeneraTon

Manufacturing

AllCoalandGasbasedSPVs

AllHydrobasedSPVs

AssumedUS$/INR=50

•  Devihalli•  Hosekote•  Kanpur‐

Aligarh

•  Griffin•  Mahatamil•  Rampia/Dip

side•  Tasra

Coal


2.Financials–P&L

Cash Profit: PAT + Depreciation + Profit Eliminated

Adj. PAT= Reported PAT + Profit Eliminated

* Revenue : Before intersegment revenue elimination

5

Note:1.  AssumedUS$/INR=502.  Mnindicatemillion

US$ Mn

Revenue EBITDA

Adj. Profit Cash profit

2,244

3,080 3,059

2,175

‐

500

1,000

1,500

2,000

2,500

3,000

3,500

FY11 FY12 FY13 FY14

430

370

531

334

‐

100

200

300

400

500

600

FY11 FY12 FY13 FY14

189 137

‐214

‐458 ‐500

‐400

‐300

‐200

‐100

‐

100

200

FY11 FY12 FY13 FY14

244 276

47

‐149 ‐200 ‐150 ‐100 ‐50 ‐ 50

100 150 200 250 300

FY11 FY12 FY13 FY14


2.Financials–BalanceSheet

* Fixed Assets : Gross Block + CWIP

6 Note:1.  AssumedUS$/INR=502.  *AsperAS‐21/AS‐28

US$ Mn

Cash & Cash Equivalents

Key Balance Sheet Figures (asonMar31,2014)NetWorth(includingMinorityInterest) 531Add:ProfitEliminated(asperAS21) 300Adjusted Net Worth 831GrossDebt(ofcompany,subsidiaries&associates) 7,325

Grossdebtofprojectsunderopera>on 3,619Grossdebtofprojectsunderconstruc>on 3,706

CashandCashEquivalent(includingsubsidiariesandassociates) 121Net Debt 7,204NetDebt/GrossAdjustedNetWorth 8.66

Above debt figures excludes acquisition debt of Griffin and working capital loans of Power companies

Fixed Assets

3,521

7,081 7,727

8,138

‐

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY11 FY12 FY13 FY14

258 282

116 121

‐

50

100

150

200

250

300

FY11 FY12 FY13 FY14


3.IndustryOverviewa)StrongPushtoDriveInfrastructureGrowth

7

XII Plan spending (FY13-FY18)

Source: World Bank Data 2010, (http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC)

Expenditure on Infrastructure is required to keep growth momentum of Indian economy

XII Five Year Plan expected target ~88 GW (as per draft document).

Per capita consumption of electricity

Total - US$1,126bn

Installed Power Capacity Growth (GW)

Source: Planning commission (XIIth five year Draft plan) (INR/USD:50)

105 108 113 118 124 132 143 148 159 174200

288

100

150

200250

300

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2017e

616

2944

0

500

1000

1500

2000

2500

3000

3500

India China

In BRIC countries, India’s per capita consumption lowest. China’s per capita consumption of power is 4.8x of India.

In order to achieve 8% growth, India should attain atleast 7% growth in total power sector.

300

64

194189

104

25

101

51 40

1830

12 -

50

100

150

200

250

300

350

Central State Private


Peak Power Deficit (FY13 Actual) Source:CEA

Per Capita Consumption Growth (Units) Power Capacities (GW)

Peak Deficit (%)

3.IndustryOverviewb)PowerScenarioinIndia

Source: CEA

8

Source: CEA

Growing share of Private players Per capita consumption of electricity ~ growing at brisk pace

Recent Policy Ini-a-ves:

1.  Policy push towards regular tariff increase byDISCOMs~mostDISCOMshikingtariffs

2.  Ini>a>ve by Government of India to allow pass‐through of addi>onal cost of imported coalsuppliedunderFSA

3.  Modifica>ontoCaseIandCaseIIstandardbiddingdocuments 12.3

13.6

18.4

18.9

21.0

21.7

22.3

24.0

Tamil Nadu

Uttar Pradesh

Karnataka

Andhra Pradesh

Himachal Pradesh

J&K

Bihar

Punjab

591 613 632 672 717 735 779 819

879

2004 2005 2006 2007 2008 2009 2010 2011 2012

Central,30%

State,42%

Private,29%

Sep‐12

Central,28%

State,38%

Private,35%

Apr‐14


4.LancoPowerBusiness‐ProjectStatusUpdate

9

Plant Fuel Capacity (MW) Oeake Udupi ImportedCoal 1,200 PPA Anpara Coal 1,200 PPA KondapalliI Gas 368 PPA KondapalliII Gas 366 ShortTerm KondapalliIII* Gas 732 ShortTermAmarkantakI Coal 300 PPA AmarkantakII Coal 300 PPA Tanjore Gas 120 PPA OtherRenewable Wind,Solar,Hydro 136 PPA Total 4,722

* kondapalli III (732 MW) is getting ready for operations.

Power Projects under OperaTon

Plant Fuel Financial closure Capacity (MW)

oeake EsTmated compleTon

LancoUoaranchal Hydro Y 76 ShortTerm FY16

Teesta Hydro Y 500 PPA FY16

AmarkantakIII&IV Coal Y 1,320 PartPPA FY16

Vidarbha Coal Y 1,320 PartPPA FY16

Babandh Coal(PartlyCap>ve) Y 1,320 PartPPA FY16

Solar Solar Y 100 PPA FY16

Total 4,636

Power Projects under ConstrucTon

34%

65%

1%Fuel Diversification

Gas Coal RenewablesincludingHydro


4.PowerBusinessPresenceAcrossValueChainDe‐riskingtheBusiness

Fuel (Coal mining) EPC Generation and O&M Trading

•  Griff in coal, Coll ie region in Western Austral ia, currently produces 4 MTPA with resources of 1.2 bn

•  Rampia and Dip side of Rampia, captive coal mine allocated by Govt. of India to Lanco and five others with reserve base of 112 MT (our portion)

•  M a h a t a m i l , a n integrated project with power plant , has reserves of 768 MT

•  Selected as MDO by SAIL for Tasra Open C a s t m i n e w i t h geological reserves of approximately 250 mn tons in Jharkhand. Includes development of a captive power plant as well.

•  Completed projects with capacity of 4,732 MW

•  4,636 MW projects under construction

•  St rong eng inee r i ng capability

•  O v e r 1 0 y e a r s o f experience in design and development of Power Projects

•  Handles global suppliers selection and sourcing of diverse materials like high-pressure fabricated e q u i p m e n t , s k i d s , i n s t r u m e n t a t i o n & electrical systems

•  Operating capacity of 4,722MW*

•  Kondapalli III (732 MW) is getting ready for operations.

•  4,636 MW projects under construction.

•  One of largest private sector player in Indian power trading market

•  Traded 2,089 mm units i n y e a r e n d e d March 31, 2014

•  Holding 5% stake in the Indian Energy Exchange floated by Financial Technologies Ltd and Power Trading Corporation

Transmission and Distribution

•  St ra tegy i n c l udes possible expansion into transmission and distribution

Integrated presence across value chain capturing value addition across the businesses

10

Type MW

Thermal&Gas 4,586

Renewable(Hydro,Solar,Wind)

136

TOTAL 4,722

*732MWge^ngreadyforopera>ons


5.EPCBusiness:In‐houseexper>seenhancesmargins

11

Construction

Executing a wide range of projects spanning Thermal Power Plants, Hydro Power Plants, Highways, Airports, Industrial Structures, Transmission and Distribution, Chimneys and Cooling Towers, Water Infrastructure and Heavy Civil Structures.

EPC

EPC order book of USD 5.24 billion as on Mar’14 Major EPC / Construction order executed

Kondapalli 1,214 MW Udupi 1,200 MW Anpara 1,200 MW Amarkantak (I & II) 600 MW Tanjore Power 120 MW

Budhil 70 MW External orders under execution EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal Power (3 x 660 MW) EPC of 250 MW Gas based Power plant in Iraq

EPC

Construction

Order Book (USD Mn)

Revenue (USD Mn)

6,032 6,140

5,260 5,236

4,400

4,800

5,200

5,600

6,000

6,400

FY11 FY12 FY13 FY14

1,174

1,734

869

451

‐

400

800

1,200

1,600

2,000

FY11 FY12 FY13 FY14


6.SolarScenario

12

  Addition of capacities:   2009 – 7.2 GW   2010 – 16.6 GW

  Price decreases that have brought PV close to grid parity in several countries have encouraged new investors

  Expected Growth in the market 3.3-4.8x of current capacity by 2015

Source: EPIA – Global Market Outlook for PV Until 2015

Glo

bal S

cena

rio

Indi

an P

ersp

ectiv

e

Source: MNRE - Renewable Energy in India: Progress, Vision and Strategy

  Under the MNRE policy:   New grid projects through NVVN   Small grid projects through IREDA   Off-grid solar

  MNRE - Phase I   Batch I 620 MW   Batch II 350 MW

  Gujarat 365 MW   Rajasthan 200 MW

  RPO requirement


6.SolarBusiness:FullyIntegratedStrategyenableslowestRs/kWh

13

EPC Project Development Integrated

Manufacturing

Targetin4Yrs

500MW/PA

Aim to be a Global player, as a developer and a third party EPC player. Current Solar EPC Order Book USD $ 590mn (included in EPC order book) Current Solar farm development portfolio – 143 MW (Operating 43 MW and Under Construction 100 MW)

400MW/PA 250MW/PA

Targetin3Yrs

Manufacturing- Phase I

Capex US$ 305 Mm

Debt: Equity 70:30

Capacity- Phase I

Polysilicon 1250 MT

Wafer 80 MW

Module Line 50 MW

Policy Capacity (MW) Tariff- Rs/Unit Project Cost

(USD mm) PPA Duration

(Yrs)

Solar PV Farm

Gujarat Policy 35 Rs 15 for 12 yrs, Rs 5 for next 13 Yrs 125 25

JNNSM 5 11.5 18 25

RPSSGP 1 16.5 4 25 Solar Thermal Farm JNNSM 100 10.5 400 25

Foray into manufacturing to support internal requirements and reduce margin volatility, through the cycle


7.NaturalResources(Coal):Outlook

  Around70%ofdemandfromPowerSector

  Uncertaintyindomes>csupply

  ExpectedImportofcoalby2017>150MT

  Increasingcompe>>onforoverseasassets

  Limitedopera>onalassets

  Uptrendinprices

DomesTc supply falls short of demand Coal Demand

Securing coal: a need; an opportunity

336

362

397

419

445

458

128 143 152 164 180 192

0

500

1000

2006‐07 2007‐08 2008‐09 2009‐10 2010‐112011‐12Anti.

MillionTones

Other

Power

Source: Ministry of Coal Annual Report 2011-12

14

InternaTonal Coal Price

Source: Bloomberg

431

457

493

533

533

540

575

795464

504

549

582

625

640 773 98

1

020040060080010001200

FY07 FY08 FY09 FY10 FY11 FY12Prov

FY13BEFY17BE

Produc>on Demand(inldmiddlings)

Source: Planning Commission (XII Plan draft document)


7.NaturalResources(Coal)

15

Griffin Coal

Largest opera>onal thermal coal mines in Western Australia,withResourcebaseof1.2bnTonne

Strategicloca>on–Bunburyport<100kmfrommine

Goodconnec>vityofrailandport.

Current producTon:‐capacityof4mtpaofcoal.

Expansion : Planstorampupproduc>ontoamaxof18MTPAbyFY18

Rampia and DIP side of Rampia

AllocatedtoLancoalongwithfiveotherIPPs

Lanco’sshareinthecoalblockswouldcatertothedevelopmentofapprox.1,000MWpowerplant.

Mahatamil

Es>matedCoalReserves768MTandspreadover24.95sqkmMiningplansubmioed&presenta>onmadetoMoCandMoEFapprovedTOR(EC)•  23%ofcoalproduced–Maharashtrastate•  Remainingcoal(77%)tobeconvertedtoPower

•  Homestateshare‐37.5%ofpower•  Remaining power shared between Tamil Nadu state

andLancoat50:50ra>o.•  Coalminingfeesof112Rs/TontobepaidbyLanco.

Capacity that can be built : ‐ •  Coalminecapacityaround15MTPA•  PowerGenera>onofabout2000MW

Tasra Open Cast Project (SAIL)

•  Selected asMine Developer and Operator (MDO) by SteelAuthority of India (SAIL) for Tasra Open Cast Project anddevelopmentofassociatedcap>vepowerproject.

•  Located in Jharia coalfield of Dhanbad (Jharkhand) havinggeologicalreservesofapproximately250milliontons

•  Se^ngupofcoalwasheryandopera>onofpowerplantof200‐300 MW capacity based on the secondary productsarisingfromtheproposedTasraWashery.


8.InfrastructureBusiness:LeveragingConstruc>onExper>setoBuildInfrastructure

16

Lanco has moved into selective infrastructure projects to leverage its EPC experience

Awarded two NaTonal highway projects in Karnataka

c.81kmstretchconnec>ngBangalore–Hoskote–Mudbagal

c.82kmstretchconnec>ngNeelamangla–Devihalli

Concessionperiodsof20yearsand25yearsrespec>velyduringwhichtollwillbecollected

CapexofUSD$360mn

GrantfromNHAIUSD$73mn

CODofDevihalliaoainedonJune25th2012andtollcollec>onstarted

CODofHoskoteaoainedonDecember19th2013andtollcollec>onstarted

Awarded one NaTonal highway projects in Uiar Pradesh

C.280Kmstretchconnec>ngAligarhtoKanpur

ProjectinvestmentofaroundUSD$200mm

GranttobereceivedUSD$57mm

FinancialClosureachieved,Stage‐IIForestclearancefromMoEFreceived

Also built jetty at Mangalore port for Udupi Power Plant


9.PropertyDevelopmentBusiness

17

Lanco Hills is the group’s foray into property development, located in Hyderabad, spread over 100 acres and comprises residential space, office space and IT SEZ

Lanco Hills

Residential •  Towers under Phase I are ready for occupation, 97% units sold out, 57% occupied •  In addition to high rise towers, 56 Villas will also be constructed

Office space •  IT tower - 0.59 mn sqft ready for occupation, lease deed signed for 80,000 sqft. •  SEZ : 0.06 mn sqft incubation space – leased out to IT companies

Property Development is restricted to Hyderabad only


10.ExperiencedManagementTeam

18

L. Madhusudhan Rao

Execu&ve Chairman

G. Bhaskara Rao Execu&ve Vice Chairman

L Sridhar Vice Chairman

G. Venkatesh Babu Managing Director

P. Abraham Director

LANCO Board

P. Kotaiah Director

U.K. Kohli Director

Finance Power

Lanco Group Senior Management Team

  T. Adi Babu   Sharad Jhingan   T. N. Subramaniyan

  P. Panduranga Rao   K. Raja Gopal

ConstrucTon & EPC

  S. C. Manocha   Ravi Kapoor

Property Development

  S. Pochendar

Solar

 V. Saibaba

S. C. Manocha Director

R. Krishnamoorthy Director


PanIndiaPresence

19

Chitradurga

Tanjore power

Amarkantak – I & II Amarkantak – III & IV

Kondapalli I & II Kondapalli III

Udupi I Udupi II

Teesta

Lanco Uttaranchal

Anpara

Babandh

Lanco Hills

Plants under construction

Plants under operation





Property development

Road development

Vamshi

Vamshi Industrial

Lanco Green

81 km Bangalore – Hoskote – Mudbagal 82 km Neelamangla – Devihalli

Coal Based

Hydro

Gas

Wind

Registered office

Corporate Office

Hyderabad

Gurgaon

Coal mine

Vidarbha


Solar

Solar Power Plants Manufacturing at Rajnandgaon- Chattisgarh

Gujarat Solar

Rajasthan Solar

Mahatamil Mine

Aligarh –Kanpur Road

Tasra mine


Wecarefortheworldwelivein

Lanco Foundation

•  Member of the UN Global Compact

•  Operating in 11 Indian States at 13 locations

•  Covering 140 villages & 200,000 population beneficiaries

•  we have a number of initiatives in place that help us to make a difference…

•  Focused work in the areas of:

  Disability

  Education

  Safe Drinking water

  Mobile Health Services

  Support of traditional arts & crafts

20


RecentAwards

  Lanco Amarkantak wins “Greentech Safety Award 2013” in Gold category in Thermal Power sector

  Lanco Anpara wins “PowerLine Award” for the Best Thermal Project

  Lanco Amarkantak wins “Golden Peacock Occupational Health & Safety Award” for the Year 2013

  Lanco Solar Wins “IESA Award For Most Innovative Product” for 2012

  Lanco Kondapalli Wins “Golden Peacock Environment Management Award for corporate Social responsibility” for 2012

  8th Construction World- Annual Award for “Fastest Growing Construction Company”

  Tanjore Power received TERI Corporate Award for “ Environmental Excellence and Corporate Social Responsibility”

  Tanjore Power received GreenTech silver award in Power sector for “Safety Management”

  IKU II received IEEMA award for “Excellence in Fast Track Commissioning of Small Hydro Projects”

  Lanco Infratech Ltd received PRSI Golden Jubilee Award for the “Most Impressive Public Relations Initiatives”

21


Disclaimer

Norepresenta>onorwarranty,expressor implied, ismadeas to,andnorelianceshouldbeplacedon, the fairness,accuracy,completenessorcorrectnessoftheinforma>onoropinionscontainedinthispresenta>on.Suchinforma>onandopinionsareinalleventsnotcurrentaterthedateofthispresenta>on.Certainstatementsmadeinthispresenta>onmaynotbebasedonhistoricalinforma>onorfactsandmaybe"forwardlookingstatements"basedonthecurrentlyheldbeliefsandassump>onsofthemanagementoftheCompany,whichareexpressedingoodfaithandintheiropinionreasonable,including those rela>ng to the Company's general business plans and strategy, its future financial condi>on and growthprospectsandfuturedevelopmentsinitsindustryanditscompe>>veandregulatoryenvironment.

Forward‐lookingstatementsinvolveknownandunknownrisks,uncertain>esandotherfactors,whichmaycausetheactual

results,financialcondi>on,performanceorachievementsoftheCompanyorindustryresultstodiffermateriallyfromtheresults, financial condi>on, performance or achievements expressed or implied by such forward‐looking statements,includingfuturechangesordevelopmentsintheCompany'sbusiness,itscompe>>veenvironmentandpoli>cal,economic,legal and social condi>ons. Further, past performance is not necessarily indica>ve of future results. Given these risks,uncertain>esandotherfactors,viewersofthispresenta>onarecau>onednottoplaceunduerelianceontheseforward‐looking statements. The Company disclaims any obliga>on to update these forward‐looking statements to reflect futureeventsordevelopments.

Thispresenta>onisforgeneralinforma>onpurposesonly,withoutregardtoanyspecificobjec>ves,financialsitua>onsor

informa>onalneedsof anypar>cularperson. Thispresenta>ondoesnot cons>tuteanofferor invita>on topurchaseorsubscribeforanysecuri>esoftheCompanybyanypersoninanyjurisdic>on,includingIndiaandtheUnitedStates.Nopartofitshouldformthebasisoforberelieduponinconnec>onwithanyinvestmentdecisionoranycontractorcommitmenttopurchaseorsubscribeforanysecuri>es.TheCompanymayalter,modifyorotherwisechangeinanymannerthecontentof this presenta>on, without obliga>on to no>fy any person of such change or changes. This presenta>onmay not becopiedordisseminatedinanymanner.

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Thank You

Documents

Lanco Infratech Ltdlancogroup.com/pdf/ir/IR_PPT_ May14.pdf · Lanco Infratech Ltd ... EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal Power (3 x 660 MW) EPC