Lanco Infratech Ltd · EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal...

© LANCO Group, All Rights Reserved © LANCO Group, All Rights Reserved

Lanco Infratech Ltd

Investor Presenta>on

POWER EPC INFRASTRUCTURE SOLAR NATURAL RESOURCES

© LANCO Group, All Rights Reserved

Agenda

2

1 Company Overview

3 Industry Overview

4 Power Business

5 EPC Business

7 Natural Resource Business

8 Infrastructure Business

9 Property Development Business

10 Experienced Management Team

6 Solar Business

2 Financials


1. Mission, Vision and Values

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’s largest Integrated Power Developer

4

Infrastructure Property Development

Subsidiaries / Affiliates

Lanco Power Natural Resources Solar

Lanco Infratech Limited (LITL)

•  Listed Holdco of the group •  Promoters Holding ~ 68% •  Adj. Net Worth US $443 mn (including Minority)

•  All businesses of the group are under LITL •  Power projects of 8,086 MW in 12 states of India (3,450MW* under opera>on & 4,636 under construc>on)

* 732 MW ge^ng ready for opera>ons

EPC Construc>on

Thermal Hydro Roads Lanco Hills EPC

GeneraSon

Manufacturing

All Coal and Gas based SPVs

All Hydro based SPVs

Assumed US$ / INR = 60

•  Devihalli •  Hosekote

•  Griffin •  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.  Assumed US$ / INR =60 2.  Mn indicate million

US$ Mn

Revenue EBITDA

Adj. Profit Cash profit

2,567 2,549

1,813

1,228

‐

500

1,000

1,500

2,000

2,500

3,000

FY12 FY13 FY14 9MFY15

308

442

279 254

‐

50

100

150

200

250

300

350

400

450

500


114

‐178

‐381

‐241

‐500

‐400

‐300

‐200

‐100

‐

100

200


230

39

‐124

‐28

‐150

‐100

‐50

‐

50

100

150

200

250



2. Financials – Balance Sheet

* Fixed Assets : Gross Block + CWIP

6 Note: 1.  Assumed US$ / INR = 60 2.  * As per AS‐21 / AS‐28

US$ Mn

Cash & Cash Equivalents

Key Balance Sheet Figures (as on Dec 31, 2014) Net Worth (including Minority Interest) 192 Add: Profit Eliminated (as per AS 21) 251 Adjusted Net Worth 443 Gross Debt (of company, subsidiaries & associates) 6,329

Gross debt of projects under opera>on 2,955 Gross debt of projects under construc>on 3,374

Cash and Cash Equivalent (including subsidiaries and associates) 90 Net Debt 6,239 Net Debt / Gross Adjusted Net Worth 14.10

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

Fixed Assets

5,901

6,439

6,782 6,890

5,400

5,600

5,800

6,000

6,200

6,400

6,600

6,800

7,000


235

97 101 90

‐

50

100

150

200

250



3. Industry Overview a) Strong Push to Drive Infrastructure Growth

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)

105 108 113 118 124 132 143 148 159 174 200

288

100

150

200 250

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


Per Capita Consumption Growth (Units)

3. Industry Overview b)Power Scenario in India

Source: CEA

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Source: CEA

Growing share of Private players Capacity Addition targets in the 12th Plan (MW)

Per capita consumption of electricity ~ growing at brisk pace

Recent Policy Ini-a-ves:

1.  State Electricity Boards (SEBS) Financial Restructuring Package

2.  Ini>a>ve by Government of India to allow pass‐through of addi>onal cost of imported coal supplied under FSA

3.  Modifica>on to Case II standard bidding documents

591 613 632 672 717 735 779 819

879

2004 2005 2006 2007 2008 2009 2010 2011 2012

Type FY13 FY14 % Change

Thermal 761 792 4

Hydro 114 135 18

Nuclear 33 34 4

Bhutan Import 5 6 17

All India 912 966 6

Source: CEA

Electricity Generation during April 2013 to March 2014 (BUs)

Type/Sector Central State Private Total

Thermal 14878 13922 43540 72340

Hydro 6004 1608 3285 10897

Nuclear 5300 0 0 5300

Total 26182 15530 46825 88537

The 12th plan targets a capacity addition of 88,537 MW with 53% of the capacity being added by the private sector


4. Lanco Power Business ‐ Project Status Update

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Plant Fuel Capacity (MW) Oeake Anpara Coal 1,200 PPA Kondapalli I Gas 368 PPA Kondapalli II Gas 366 Short Term Kondapalli III* Gas 732 Short Term Amarkantak I Coal 300 PPA Amarkantak II Coal 300 PPA Tanjore Gas 120 PPA Other Renewable Wind, Solar, Hydro 64 PPA Total 3,450

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

Power Projects under OperaSon

Plant Fuel Financial closure Capacity (MW)

oeake EsSmated compleSon

Lanco Ularanchal Hydro Y 76 Short Term FY 17

Teesta Hydro Y 500 PPA FY 17

Amarkantak III & IV Coal Y 1,320 Part PPA FY 17

Vidarbha Coal Y 1,320 Part PPA FY 17

Babandh Coal (Partly Cap>ve) Y 1,320 Part PPA FY 17

Solar Solar Y 100 PPA FY 17

Total 4,636

Power Projects under ConstrucSon

46% 52%

2% Fuel Diversification

Gas Coal Renewables including Hydro


4. Power Business Presence Across Value Chain De‐risking the Business

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

•  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 3,450MW*

•  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 333 mn units in quarter ended Dec 31, 2014

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

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Type MW

Thermal & Gas 3,386

Renewable (Hydro, Solar, Wind)

64

TOTAL 3.450

* 732 MW ge^ng ready for opera>ons


5. EPC Business: In‐house exper>se enhances margins

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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 4.91 billion as on Dec’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 of Supercritical Ennore Thermal Power Project (1*660MW)

EPC

Construction

Order Book (USD Mn)

Revenue (USD Mn)

5,117

4,383 4,363

4,910

3,600

4,000

4,400

4,800

5,200


1,445

724

376 189

‐

400

800

1,200

1,600



6. Solar Scenario

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. Solar Business: Fully Integrated Strategy enables lowest Rs/kWh

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EPC Project Development Integrated

Manufacturing

Target in 4 Yrs

500 MW/PA

Aim to be a Global player, as a developer and a third party EPC player. Current Solar EPC Order Book USD $ 468mn (included in EPC order book) Current Solar farm development portfolio – 141 MW (Operating 41 MW and Under Construction 100 MW)

400 MW/PA 250 MW/PA

Target in 3 Yrs

Manufacturing- Phase I

Capex US$ 180 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 89 25

JNNSM 5 11.5 14 25

RPSSGP 1 16.5 2.4 25 Solar Thermal Farm JNNSM 100 10.5 311 25

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


7. Natural Resources (Coal):

  Around 70% of demand from Power Sector

  Uncertainty in domes>c supply

  Expected Import of coal by 2017 > 150 MT

  Increasing compe>>on for overseas assets

  Limited opera>onal assets

DomesSc supply falls short of demand Securing coal: a need; an opportunity

14

431

457

493

533

533

540

575

795 464

504

549

582

625

640 773 98

1

0 200 400 600 800 1000 1200

FY07 FY08 FY09 FY10 FY11 FY12 Prov

FY13 BE FY17 BE

Produc>on Demand (inld middlings)

Source: Planning Commission (XII Plan draft document)

Tasra Open Cast Project (SAIL)

•  Selected as Mine Developer and Operator (MDO) by Steel Authority of India (SAIL) for Tasra Open Cast Project and development of associated cap>ve power project.

•  Located in Jharia coalfield of Dhanbad (Jharkhand) having geological reserves of approximately 250 million tons

•  Se^ng up of coal washery and opera>on of power plant of 200‐300 MW capacity based on the secondary products arising from the proposed Tasra Washery.

Griffin Coal

Largest opera>onal thermal coal mines in Western Australia, with Resource base of 1.2 bn Tonne

Strategic loca>on – Bunbury port <100 km from mine

Good connec>vity of rail and port.

Current producSon :‐ capacity of 4 mtpa of coal.

Expansion : Plans to ramp up produc>on to a max of 18 MTPA by FY 18


8. Infrastructure Business: Leveraging Construc>on Exper>se to Build Infrastructure

15

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

Awarded two NaSonal highway projects in Karnataka

c. 81 km stretch connec>ng Bangalore – Hoskote – Mudbagal

c. 82 km stretch connec>ng Neelamangla – Devihalli

Concession periods of 20 years and 25 years respec>vely during which toll will be collected

Capex of USD $ 308 mn

Grant from NHAI USD $ 60 mn

COD of Devihalli alained on June 25th 2012 and toll collec>on started

COD of Hoskote alained on December 19th 2013 and toll collec>on started

Also built jetty at Mangalore port for Udupi Power Plant


9. Property Development Business

16

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, 63% 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. Experienced Management Team

17

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

U.K. Kohli Director

Finance Power

Lanco Group Senior Management Team

  T. Adi Babu   T N Subramanian

  P. Panduranga Rao   K. Raja Gopal

ConstrucSon & EPC

  S. C. Manocha

Solar

  Rajkumar Roy

S. C. Manocha Director

R. Krishnamoorthy Director


Pan India Presence

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Chitradurga

Tanjore power

Amarkantak – I & II Amarkantak – III & IV

Kondapalli I & II Kondapalli III

Teesta

Lanco Uttaranchal

Anpara

Babandh

Lanco Hills

Plants under construction

Plants under operation





Property development

Road development

Vamshi

Vamshi Industrial

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

Tasra mine


We care for the world we live in

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

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Recent Awards

  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”

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Disclaimer

No representa>on or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the informa>on or opinions contained in this presenta>on. Such informa>on and opinions are in all events not current arer the date of this presenta>on. Certain statements made in this presenta>on may not be based on historical informa>on or facts and may be "forward looking statements" based on the currently held beliefs and assump>ons of the management of the Company, which are expressed in good faith and in their opinion reasonable, including those rela>ng to the Company's general business plans and strategy, its future financial condi>on and growth prospects and future developments in its industry and its compe>>ve and regulatory environment.

Forward‐looking statements involve known and unknown risks, uncertain>es and other factors, which may cause the actual

results, financial condi>on, performance or achievements of the Company or industry results to differ materially from the results, financial condi>on, performance or achievements expressed or implied by such forward‐looking statements, including future changes or developments in the Company's business, its compe>>ve environment and poli>cal, economic, legal and social condi>ons. Further, past performance is not necessarily indica>ve of future results. Given these risks, uncertain>es and other factors, viewers of this presenta>on are cau>oned not to place undue reliance on these forward‐looking statements. The Company disclaims any obliga>on to update these forward‐looking statements to reflect future events or developments.

This presenta>on is for general informa>on purposes only, without regard to any specific objec>ves, financial situa>ons or

informa>onal needs of any par>cular person. This presenta>on does not cons>tute an offer or invita>on to purchase or subscribe for any securi>es of the Company by any person in any jurisdic>on, including India and the United States. No part of it should form the basis of or be relied upon in connec>on with any investment decision or any contract or commitment to purchase or subscribe for any securi>es. The Company may alter, modify or otherwise change in any manner the content of this presenta>on, without obliga>on to no>fy any person of such change or changes. This presenta>on may not be copied or disseminated in any manner.

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Lanco Infratech Ltd · EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal...

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