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December 2010
2
Certain statements included in this presentation may constitute "forward-looking statements" in respect of the Company’s
operations, performance, prospects and/or financial condition. By their nature, forward looking statements involve a number
of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by
those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should
not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or
otherwise. Nothing in this presentation should be construed as a profit forecast.
This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase
any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in
connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a
recommendation regarding the shares of the Company. Past performance cannot be relied upon as a guide to future
performance. Information in this presentation reflects the knowledge and information available at the time of its preparation.
3
Section A : Overview 4
IL&FS Group
IIML Overview
Business Model
Key Contributors
Leadership Team
Section B : Funds 11
Key Milestones
Funds across Spectrum
Exit Experience
Section C : Financial Performance 19
Past Performance
Growth in AUM
Consolidated Financials
4
5
– Formed in 1988– Initial participants were Indian Banks and Institutions– International Institutional Investors inducted over the years
• ORIX Corporation (Japan), Abu Dhabi Investment Authority• Earlier stakeholders include IFC, Govt. of Singapore, HSBC
Earliest Infrastructure Developers
Unique Positioning
Pioneering Development Role
Play
– Promoted India’s first private sector toll road and water supply project– Sponsored India’s first infrastructure focused PE fund with AIG– Early entrants in niche growth areas like waste management, renewable
energy, education with a strong social orientation– Project development partnerships with various State Governments – Advisor to Central and State Governments for developing legal and policy
frameworks
– Multiplicity of roles : As sponsor, developer, advisor, and financier– Promoted over 50 sector dedicated Special Purpose Vehicle companies– Developing infrastructure projects worth over $ 30 billion– In-house capabilities to take projects from ‘concept’ to ‘commissioning’
6
Private Equity
IL&FS Investment Managers
Infra Development
IL&FS Infrastructure Development Corp
Fiduciary Services
IL&FS Trust Company
Service SPVs
Ecosmart (Environment), IETS (Education) , ITL (Technology) , IPMSL (Property Mgmt)
Infrastructure SPVs
ITNL (Roads), IEDCL (Power), IMCL (Ports), NTADCL (Water), IWMUSL (Waste Mgmt) etc
Financial Services
IL&FS Financial ServicesIL&FS Securities Services
IL&
FS
IIML
Strong relationships with Governments,
Multi-lateral and domestic Financial
Institutions and Corporates
Team experience straddles fund
and economic cycles
Investment spectrum spans VC to PE; Buy-
outs to PIPEs
Manages US$ 3.2 bn for
marquee international Limited
Partners and domestic
Institutions
7
Seen the Indian PE world expand from less than
US$ 20 mn to more than US$ 15 bn
Cross sectoral presence across 15
Funds
General Purpose PE
Real Estate
Infrastructure
About 90% of capital has an average
contractual life of 7 years
Fund size have increased with experience; wider and
deeper strategy to propel growth
66 exits / liquidity events
3 Funds fully divested
Over 140 investments since 1998
IL&FS Group, enjoys a pre-eminent position in the
infrastructure and financial services sectors
Realized gross US$ IRR of 25% p.a.
8
Management Fee:- Typically 1.5-2% of AUM for the fund life - Highly visible, annuity revenue stream over 6-10 years
Carry:- Performance upside through profit share- Hurdle rate ranges between 8-11% p.a.- Carry is 20% of profits from investments - A upside component as Fund size / Asset under Management increases
Revenue Stream
Revenue Stream
- Long-term investment horizon of 3-5 years- Majority investments in unlisted companies- Active investors with clear focus on value creation- Mitigates risk of stock market volatility
Investment Model
Investment Model
Indirect exposure to growth potential of large unlisted companies
Better positioned to create upsides vs managers of other asset classes
Documented advantages of PE participation in the value of unlisted companies
Higher degree of value add and relatively early stage of investment provides significant
upside at exit
Banks/ Institutions Insurance /Pension Funds Others
9
This is not an exhaustive list of contributors. In most instances, names of
contributors can not be revealed on account of confidentiality
Legal, Accounts & Risk Team
Size : 16
Investment TeamSize : 40
Infrastructure
Private Equity
Real Estate
10
Mr. Shahzaad DalalVice Chairman
•26 years of financial markets and investment experience
•MBA from Northeast Louisiana University
Dr. Archana HingoraniCEO and Executive Director
•24 years of experience in the financial services industry, including teaching finance and research
•MBA and PhD. University of Pittsburgh
IIML Employees own over 10% in the Company
(based on shares held and options issued)
11
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
South Asia Regional Apex Fund
AIG India Sectoral Equity Fund
India Auto Ancillary Fund
India Project Development Fund
Leverage India Fund
IL&FS India Realty Fund- I
Tara India Fund III;Urjaankur Fund
Pan Asia Project Development Fund
IL&FS India Realty Fund – II; IL&FS Milestone Fund II
IL&FS Milestone Fund 2009
Saffron Fund – II, Standard Chartered IL&FS Asia Fund
12
Saffron Yatra Fund
A diversified portfolio with a vast experience in managing funds
across all the sectors and business cycles
13
Private Equity Real Estate Infrastructure
Two active funds aggregating US$ 378 mn
First Fund fully divested; distributed carry
Established 2005; first of the real estate funds in India
Funds aggregating US$ 2.0 bn
JV partnership in yield based Funds
Acquired two RE funds aggregating $ 400 mn in 2010 – one of which is a Euro 220 mn Euronext listed fund (Yatra Capital)
Pan Asia focused Infrastructure Funds
Two active Fund aggregating US$ 703 mn
JV partnership for the core infrastructure fund
US$ 262 mn invested in 49 transactions
Early investors in Retail, Shipyard, Media
IIML’s ExperienceIIML’s Experience Investee CompaniesInvestee Companies
Investments – Across Sectors Investments – Across Sectors
14
Name Vintage Corpus (US$ mn)
Growth PE Funds
AIG Indian Sectoral Equity Fund 1996 91
Leverage India Fund 2004 153
Tara India Fund III 2007 225
VC / Sector Specific Funds
India Auto Ancillary Fund 1998 15
South Asian Regional Apex Fund 1995 25
IT & ITES24%
Manufacturing41%
RMCS25%
Life Sciences10%
Pioneer in India - First RE fund launched in 2005
Early investors in SRA & Industrial Parks
US$ 1.3 billion already deployed in 58 transactions
Name Vintage Corpus (US$ mn)
Core Real Estate Funds
IL&FS India Realty Fund I 2006 525
IL&FS India Realty Fund II 2007 895
Saffron Funds 2007/09 393
Yield Based Funds
IL&FS Milestone Fund I & II 2007 220
IIML’s ExperienceIIML’s Experience Investee CompaniesInvestee Companies
Investments – Across FundsInvestments – Across Funds
15
IIRF ‐ I45%
IIRF ‐ II26%
Milestone ‐ I7%
Milestone ‐ II4%
Saffron ‐ Yatra16%
Saffron ‐ II2%
Over US$ 456 mn invested in 34 transactions
Early investors in Telecom, Roads, City Gas, Rail
Two Funds fully divested ; generated a gross
return of 23% p.a. and 27% p.a. respectively
IIML’s ExperienceIIML’s Experience Investee CompaniesInvestee Companies
Investments – Across SectorsInvestments – Across Sectors
16
Name Vintage Corpus (US$ mn)
Infrastructure Funds
AIG Indian Sectoral Equity Fund 1996 91
SCI Asia Infra Growth Fund 2008 658
Project Development Funds
India Project Deve. Fund 2000 16
Pan Asia Project Deve. Fund 2006 45
Telecom5%
Energy34%
Transportation8%Ports
8%
Water5%
Logistics6%
Ancillary34%
Returns Number of
Investments
IRR Multiple
Realized Investments 48 25% 2.0 x
Liquidity – Across a mix of strategiesLiquidity – Across a mix of strategies
17
In addition, 18 investments have had liquidity events
Return Profile – Deep experience and consistent performanceReturn Profile – Deep experience and consistent performance
Buyback23%
Listed / IPO39%
Strategic Sale23%
Trade Sale15%
Company Sector Gross IRR (%)(In US$ terms) Gross Multiple
Shopper's Stop Consumer Services 22.5 3.6
iMetrex Technologies IT 31.9 3.4
Indiagames IT 72.0 14.0
ibn18 Broadcast Limited Media 34.0 2.6
Hotel Leela Venture Hospitality 85.9 2.3
Max Telecom Ventures Telecom 19.9 4.0
Noida Toll Bridge Roads 23.5 3.0
ABG Shipyard Manufacturing 72.5 4.2
SpiceJet Aviation 25.6 1.8
Indraprastha Gas Energy 64.9 7.0
18
19
20
AUM increased 19x
Stock Price grew 57x(Compared to Sensex growth of 5x)
PAT increased by 21x
Revenues increased by 22x
Dividend increased at a CAGR of 27%(Total Payout of Rs 62.5 per share (for one share of Rs 10 in 2000)
Total AUMUS$ billion
AUM grew at a CAGR
of 60% during
FY2006 to FY2011
AUM Break-up FY 2011
21
Real Estate64%
Infrastructure23%
Private Equity13%
FY 2007 FY 2008 FY 2009 FY 2010
Total Income 601 1,057 1,642 1,759
Total Costs 221 592 796 803
PBT 380 465 846 956
PAT 178 319 623 741
PAT Margin (%) 30 30 38 42
Net Worth 440 710 928 1,368
EPS (Rs)* 1.5 1.6 3.1 3.7
Dividend (%)** 40 55 70 75
(Rs Mn)
* Adjusted for 1:2 Bonus Issues in FY 2007 and FY 2009, 5:1 share split in FY 2009** Percentage of Face value of share of Rs 2 each
Rs
mill
ion
22
23
IIML has a successful business model built assiduously over the last decade◦
Fund Manager of repute ◦
A port of first call for investees
Business model to be replicated resulting in enhanced AUM / revenues through ◦
Larger follow on funds◦
New emerging opportunities◦
Extending Geographies
Substantial increase in activity levels on all counts in the next 2-3 years◦
Enhanced Fund raising◦
High level of investment deal flow◦
More investments to reach liquidity / exit stage
Carry in the medium term