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fLanco Infratech

Investor Presentation

POWEREPC INFRASTRUCTURESOLAR RESOURCES

© LANCO Group, All Rights Reserved

Agenda

1 Company Overview

2 EPC d C i B i2 EPC and Construction Business

3 Power Business

4 S l B i4 Solar Business

5 Resource Business

6 I f B i6 Infrastructure Business

7 Property Development Business

8 l8 Financials

9 Experienced Management Team

© LANCO Group, All Rights Reserved2

Agenda

1 Company Overview

2 EPC d C t ti B i2 EPC and Construction Business

3 Power Business


5 Resource Business

6 Infrastructure Business6 Infrastructure Business


8 Fi i l8 Financials



Mission, Vision and Values

Mission: Development of Society through Leadership, Entrepreneurship, Ownershipp, p p, p

Vision: Most Admired Integrated Infrastructure Enterprise

Values:Integrity

l &C Humility & RespectContinuousLearning

A hi t D i

Teamwork Organization before Self


Achievement DriveAccountability

A Leading Integrated Infrastructure Player

Division of Lanco Infratech

Construction & EPC

• Executed projects worth US$1.3 bn in FY 11• Order book of US$ 6.7 bn

S i l P V hi l

Infrastructure Property Development

• Developing c. 440 km ofNational Highways in

• 4mm sq ft underdevelopment in

Special Purpose Vehicles

Power

• Installed Capacity c. 3,287 MW

Resources

• Currently developing acouple of coal blocks one

Solar

• Manufacturing Facility:National Highways inKarnataka and UP

• Developing Ennore Port

development inHyderabad, India• Capacity under construction

c. 6,024 MW • One of the largest player in

power trading business

couple of coal blocks, onein India and the other inAustralia

Poly-silicon 1250 MTWafer 80 MWModule Line 50 MW

• Farm Development:PV 41 MWThermal 100 MW

Note: 1 This presentation assumes an exchange rate of US$ / INR =45

• Installed capacity 5MW


1 This presentation assumes an exchange rate of US$ / INR =452 Financial year ending March 313 mm / bn indicates million/ billion

Lanco Foundation

At Lanco, we pride ourselves on being an organization that cares for the world we live in

A member of the UN Global Compact and led by Lanco Foundation,

that cares for the world we live in.

A member of the UN Global Compact and led by Lanco Foundation,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


Pan India Presence

Plants under construction

Coal BasedPlants under operation

Teesta

Lanco UttaranchalPlants under operation


Vamshi

Vamshi Industrial

Lanco GreenHydro

GasGurgaon

Amarkantak – I & IIAmarkantak – III & IV

AnparaPlants under operation


Gas

Wind

Plants under development

ChitradurgaKondapalli I & IIKondapalli III

Babandh

Lanco Hills

Plants under operation

Property developmentRoad development

Hyderabad

Coal mine

Vidarbha

g

Aban power

Udupi I

Udupi II

81 km Bangalore – Hoskote – Mudbagal82 km Neelamangla – Devihalli Tamil Nadu Wind

Registered office

Corporate Office

Coal mine


Aban power

Strong Push to Drive Infrastructure GrowthInfrastructure spending (2007-2012)

Government is targeting investment of >US$400 billion during 2007-2012

Total - US$437bn

Peak Demand / supply gap for power

120

160 157 13.8

16.6

11.912.7 14

16

18

100000

120000

140000

0

40

80

120

(US$

bn)

79 68 65 5551

199 6 5

10.2

2

4

6

8

10

12

20000

40000

60000

80000

100000

*upto December

Power

Roads

and B

ridge

sTele

com

Railway

sIrri

gatio

nWater

/ san

itatio

n

Ports

Airport

sStorag

e

Gas

Central Govt. State Govt. Private sector

00

FY 07 FY 08 FY 09 FY 10 FY 11*

Demand (MW) Met (MW) Deficit (%)

Commentary• Current government is putting lot of emphasis on

infrastructure spending and growth

Per capita consumption of electricity

Source: Planning commission (XIth five year plan) Source: Annual Report 2010-11 of Ministry of Power

• Positive regulatory reforms remain a key driver ofgrowth

• Power is likely to be the fastest growth sector in theforeseeable future in Infrastructure


Source: UNDP, Human Development Indicators, 2007/08

In the XIth five year plan (2007-2012), the Government targets to add 78,700 MW of generating capacity

Agenda

1 Company Overview


3 Power Business


5 Resource Business






EPC & Construction

ISO 9001: 2000 certified

EPC

EPC & Construction have an order book of over USD 6.7 bn as of March’11

Specialist in Conventional and Renewable power plants

Received Award for “Outstanding Contribution in Power & Energy Sector”

ISO 9001:2008 certified

Construction

The focus is on:Energy and Industrial Construction

Infrastructure Construction

Awarded as the “Largest & Most Profitable construction Company by Construction World ” Awarded as the “Largest & Most Profitable construction Company by Construction World ” consecutively for 3 years

“Ranked No.4 in India’s Top 10 Infrastructure Companies ” by Construction Week


In‐house EPC Reduces Execution Risk/ Enhances Margins

6,703 7,0008,000

Order Book (USD Mm)The order book stands at USD 6.7 billion as on 31st March 2011.

Major EPC order executedAmarkantak (I & II)

1,156

2,893 2,310

5,714

2,000 3,000 4,000 5,000 6,000 7,000

KondapalliAbanUdupi (I & II)Anpara (I)

Ne E ternal orders recei ed ‐

1,000

Mar'07 Mar'08 Mar'09 Mar'10 Mar'11

New External orders received 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

EBITDAMargin

Construction

Executing a wide range of projects spanning Thermal PowerPlants, Hydro Power Plants, Highways, Airports, Industrial 13.9

14.7 14.7

14.0

14.2

14.4

14.6

14.8

Mar

gin

EBITDA Margin

Structures, Transmission and Distribution, Chimneys andCooling Towers, Water Infrastructure and Heavy CivilStructures.

13.4

13.6

13.8

14.0

FY 09 FY 10 FY 11

%


Agenda

1 Company Overview


3 Power Business


5 Resource Business






Power Deficit Scenario

582

631

1,000

2004

2006

2012

Per Capita Consumption Growth (Units)Planned Vs. Installed Capacity – Xth Plan (MW)

5,951

30,000

18

35

84

131

238

408

1950

1960

1970

1980

1990

2001

No of Units

58% growth in XIth Plan4,481

2,691

6,676

3,553

,

7,33012,790

1,1801,3008,7424,495

1,231

700

1,170

10,000

20,000

(MW

)

No. of Units

Projected 2012 peak Energy Deficit Power Deficit (2010)

Source: CEA

0Hydro Hydro Thermal Thermal Nuclear Nuclear

Central sector State sector Private sector(Planned) (Installed) (Planned) (Installed) (Planned) (Installed)

Source: CEA

Peak Deficit States Energy Deficit

‐13

‐12

‐11

‐7

8

6

7

4

Jar

TN

AP

Har

‐24

‐24

‐21

‐18

‐14

‐13

19

14

22

19

19

8

Mah

Pun

UP

Aru

MP

Kar


Source: Ministry of Power Source: CEA

‐34

‐33

24

25

14

19

J & K

Bihar

Mah

13

Presence Across Value Chain De‐risking the Business

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

Integrated presence across value chain capturing value addition across the businesses

• Griffin coal, basedout of Collie inWesternAustralia, owns thelargest operationalthermal coal minesin the

• Completed projectswith capacity of 3,292MW and 5,948 MWprojects underconstruction

• Strong engineering

• Installed projectswith capacity of3,287 MW and6,024 MW projectsunderimplementation

• One of largestprivate sectorplayer in Indianpower tradingmarket

• Traded 6,043mm

• Strategy includespossible expansioninto transmissionand distribution

in theregion, producingover 4 mtpa of coalwhich can beramped up to over20 mpta in the nearterm, postinfrastructure

g g gcapability andresources spanningfeasibilitystudies, front-enddesign and completedetail design with over10 years of experience

• Generationactivities includeconventional andnon-conventionalsources of energylike coal, gas, hydroand wind

,units in year endedMarch 31, 2011

• Holding 5% stake inthe Indian EnergyExchange floated byFinancialTechnologies Ltdinfrastructure

development.

• Captive coal mineallocated by Govt.of India to Lancoand five others

in design anddevelopment of PowerProjects

• Handles globalsuppliers selection andsourcing of diversematerials like high-

Technologies Ltdand Power TradingCorporation

and five others

• Coal to be used forportion of needs ofthe Orissa based1,320 MW Babandhpower plant

materials like highpressure fabricatedequipment, skids, electrical andinstrumentationsystems


Capacity Ramp up

Projected capacity additionFY14

On track to achieve operating capacity of 15,000 MW capacity by 2015

j p y

FY13

FY14• Babandh• Amarkantak III & IV• Vidarbha

15,000 MW

FY15

FY12

• Anpara II• Kondapalli III• Green

• Uttaranchal• Teesta

9,311 MWCurrent• Udupi I & II

Kondapalli I & II • Green

4 699 MW

5,351 MW• Kondapalli I & II• Amakrantak I & II• Anpara I• Aban• Other Renewable

4,699 MW

3,287 MW


Project Status UpdateProjects under operation Plant Fuel Capacity

(MW) Total cost (US$mm)

Offtake

Udupi Imported Coal 1,200 1,245 PPA Anpara Coal 6002 1,0223 Part PPA Kondapalli I Gas 368 252 PPA Kondapalli II Gas 366 264 Merchant

Coal74%

Fuel Diversification

Kondapalli II Gas 366 264 MerchantAmarkantak I Coal 300 287 Merchant Amarkantak II Coal 300 298 PPA Aban Gas 120 98 PPA Chitradurga Wind 3 3 PPA Tamil Nadu Wind Wind 10 11 PPA Vamshi Hydro Hydro 10 13 PPA Vamshi Industrial Hydro 10 13 PPA Total 3 287 3 506

Gas18%

Hydro8%

Others0%

Total 3,287 3,506

Projects under Construction

Plant FuelFinancial closure Capacity Budgeted

cost offtake Estimated Current statusPlant Fuel closure status (MW) cost

(US$mm) offtake completion Current status

Anpara Coal Y 6002 1,0223 Part PPA FY 12 Unit II Boiler chemical cleaning completed

Lanco Green Hydro Y 70 93 PPA FY 12 Tunnel Lining works completed

Kondapalli - III Gas Y 742 581 Part PPA FY 12 GT foundation work completed. HRSG erecting started.

Lanco Uttaranchal I & II Hydro Y1 152 231 Merchant FY 13 Dam / HRT / Power House under progress

Teesta Hydro Y 500 666 PPA FY13 Unit erecting started

Amarkantak III & IV Coal Y 1,320 1,531 Part PPA FY 14 Boiler structure completed

Vidarbha Coal Y 1,320 1,555 Part PPA FY 14 Mail plant concreting work in progress

Babandh Coal (Partly Owned)

Y 1,320 1,555 Part PPA FY 14 Boiler structure erecting started

TOTAL 6,024 7,234


Note: 1 For 76 MW Financial Closure is done 2 100 MW is available for Third party sale 3 Project cost is for full project.

Agenda

1 Company Overview


3 Power Business


5 Resource Business






Global Solar PV Market‐ Demand estimates7000

55006000

6935

5000

6000

7000

8000

2010

GLOBAL DEMAND (MW)

650

1500

700 1000600

1200 10001560

1060

20001300

2500

1500

2400

5001000

2000

3000

4000

5000 2010

2011

2012

2013

2014650 700 600105 200 280 500

0

1000

Germany Spain Italy France US China India Japan Belgium Czech Rest of the World

1380

Long Term Installed Capacity Projection (GW)

2010 2020 2030 2040 2050

Total Global demand expected togrow to 30 GW in 2014 under policydriven scenario, from ~17GW in 2011

Newer markets liked h d

17 3 5 2118 22 49 21

447

99223

103

957

243

551

267404

908

463

France, US, India, Czech and manymore opening up

According to IEA estimates, GlobalInstalled Capacity expected to reach210 GW by 2020, from just 40 GW in


17 3 5 2

Residential Commercial Utility Off Grid

2010

Source: EPIA & IEA 2010 Outlook

RPOs pushing the frontier further‐ 2022Electricity Consumption (Billion Units ) 2021-22E

Equivalent Solar Installation capacity (MW) RPO 3%

AP 175.6

The solar power purchase

obligation for the States

start with 0.25% in phase 1 Chhattisgarh 45.1Gujarat 156.8Haryana 73.8Jharkhand 51 7

p

(FY2011-2013) and go up to

3% by 2022

Installed solar capacity by Jharkhand 51.7Karnataka 107.5MP 99.0Maharashtra 219.9

2022 at 38 GW. This implies

cumulative poly market of

~175,000 MT, over next 10

YrsOrissa 63.1Punjab 104.3Rajasthan 96.4TN 182 8

Electricity demand expected

to double by 2020, and 400

mn people has no access to TN 182.8UP 150.2WB 84.5

20,000 MW under JNNSM

electricity – this segment is

addressable by solar power


India (2021-22) 1914.5 38,290 MW 18,290 MW outside NSM

RPO : Renewable Portfolio Obligation

Fully Integrated Strategy enables lowest Rs/kWh

Target in 4 Yrs Target in 3 Yrs

EPC Project Development

Integrated Manufacturing

500 MW/PA 400 MW/PA 250 MW/PA

Aim to be a Global player, as a developer and a third party EPC player

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


Manufacturing Phase I

Other Benefits20% Capital Subsidy, under SIPSExemption of CST/Service Tax

Manufacturing- Phase ICapex $ 305 MmDebt: Equity 70:30 Exemption of CST/Service Tax

Exemption of State taxes and levies No Duties on Imported Equipment and Raw MaterialsVAT exemption

Capacity- Phase IPolysilicon 1250 MTWafer 80 MWCOD H2 FY13 Module Line 50 MW

Manufacturing Plan

COD H1 FY 12

Due to very promising domestic demand andmandatory local content requirement ModulePoly Production 1250 MT

Internal Consumption 440 MTExternal Sales 810 MTWafer Production 80 MW

mandatory local content requirement, Moduleline plans have been pre poned

In successive years of NSM, policy envisagesincreasing local content requirement, which willcover complete upstream manufacturing

Given for Tolling- Cells 52 MWExternal Sales 28 MWModule Production 50 MWExternal Sales 50 MW

cover complete upstream manufacturing

Apart from increasing polysilicon demandglobally, we expect domestic polysilicon market(Indian) demand to cross 7500 MT over thecoming three to four years


Solar Farms

Policy Capacity (MW)

Tariff-Rs/Unit

Project Cost (USD

PPA Duration

(Yrs)Comments

mm) (Yrs)

Solar PV Farm

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

125 25

Accelerated depreciation allowed under state policy. Developing these projects on LITL Balance next 13 Yrs sheet- Extremely attractive IRR

JNNSM 5 11.5 18 25Over sizing of Solar Field allowed, which leads to ~20% incremental generation. IRRs are attractive.

RPSSGP 1 16 5 4 25 Very attractive IRR, in spite of RPSSGP 1 16.5 4 25 y , psmaller size.

Solar Thermal Farm

JNNSM 100 10.5 400 25Use Salt Storage to increase Capacity

Utilization Factor to ~34.5%


Agenda

1 Company Overview


3 Power Business


5 Resource Business






Coal OutlookGlobal export market to remain tight Coal Demand

800

1000

s1,0001,2001,400

394

455

441

477

540

520

151173 156 177

191 193

0

200

400

600

Million To

ne

Other

Power

0200400600800

1,000

Domestic supply flatters to deceive Securing coal: a need; an opportunity

02008‐09 BE 2009‐10 BE 2009‐10 RE 2010‐11

Assessed2011‐12 Original

2011‐12 Revised

Source: Ministry of Coal Annual Report 2009-10

2009 2010 2011 2012 2013 2014 2015

Imports Demand (MT) Exports Supply (MT)

Uncertainty in domestic supply

Increasing competition for overseas assets

Limited operational assets

Secular uptrend in prices


Resources

• Integration across the value chain

• Providing increased fuel security (both volume and price) for current power generation assets and future power portfolio expansions

Providing integration and increased fuel security

power generation assets and future power portfolio expansions.

• Presents an opportunity to participate in the burgeoning naturalresources trading market.

• Looking out for further opportunities in mineral rich countries of Australia, Indonesia, South Africa and India.

Griffin Coal

Largest operational thermal coal mines in Western Australia, currently producing over 4 mtpa of coal

Plans to ramp up production to over 20 mpta, post development of evacuation infrastructure.

Good coal quality suitable for power plants

Strategic location

Rampia and DIP side of Rampia

Allocated to Lanco along with five other IPPs

Lanco’s share in the coal blocks would cater to the development of


Lanco s share in the coal blocks would cater to the development of approx. 1,000 MW power plant.

25

Agenda

1 Company Overview


3 Power Business


5 Resource Business






Leveraging Construction Expertise to Build Infrastructure Business

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

Awarded two National highway projects in Karnataka

c. 81 km stretch connecting Bangalore – Hoskote – Mudbagal

c. 82 km stretch connecting Neelamangla – Devihalli

Concession periods of 20 years and 25 years respectively during which toll will be collected

Construction under progress and expected to be completed soon

Awarded one National highway projects in Uttar Pradesh

C. 280 Km stretch connecting Aligarh to KanpurP j t i t t f d USD 213

Awarded Ennore Port

Project investment of around USD 213 mmGrant to be received USD 62 mm

Awarded Ennore Port

Along-with three other consortium partners

Holding 26% in the project

Concession period of 30 years


Expected capex for the project is USD $ 300 mm

Agenda

1 Company Overview


3 Power Business


5 Resource Business






Property Development – An Opportunistic PlayLanco Hills is the group’s foray into property development, located in Hyderabad,spread over 100 acres and comprises residential space, office space, IT SEZ,shopping mall and two hotels

Lanco Hills

Residential • Construction in progress on 6 residential towers• Construction in progress with possession of apartments to commence shortly

Office space• Office complex with built-up area of 0.5 mm sq ft• Constructing office space with completion target of 2011• Constructing SEZ space with completion target of 2012g p p g

Shopping mall • Plans to build a 2.5mm sq ft of a shopping mall • Construction will be in phases

Hotels • Tied up with Grand Hyatt for a 400 room, 5 star deluxe hotel


Agenda

1 Company Overview


3 Power Business


5 Resource Business






Steady Growth

339

420 400 450

EBITDA

2,503 2,500

3,000

Revenue*

49

155 197

339

50100 150 200 250 300 350

US$mm

357

768

1,543

2,102

500

1,000

1,500

2,000

,

US

$mm

Adj. PAT

‐50

FY 07 FY 08 FY 09 FY 10 FY 11

Cash Profit

‐

FY 07 FY 08 FY 09 FY 10 FY 11* Revenue : Before intersegment revenue elimination

139

210

150

200

250

mm

Adj. PAT

217

289

200

250

300

350

mm

42

85 91

‐

50

100

FY 07 FY 08 FY 09 FY 10 FY 11

US

$m

56

102 115

‐

50

100

150

FY 07 FY 08 FY 09 FY 10 FY 11

US$

m


FY 07 FY 08 FY 09 FY 10 FY 11

Cash Profit: PAT + Depreciation + Profit Eliminated(For FY 11 cash profit is before adjustment for depreciation written back)

Adj. PAT= Reported PAT + Profit Eliminated

Agenda

1 Company Overview


3 Power Business


5 Resource Business






Experienced Management Team

LANCO Board LANCO Board

D U K K hliL. Madhusudhan RaoExecutive Chairman

L SridharVice Chairman

P. KotaiahDirector

Dr. U.K. KohliDirector

S. C. ManochaDirector

G. Bhaskara RaoExecutive Vice Chairman

G. Venkatesh BabuManaging Director P. Abraham

DirectorB. VasanthanDirector

P. NarasimharamuluDirector

Finance Power

Lanco Group Senior Management TeamLanco Group Senior Management Team

J.Suresh KumarT. Adi Babu

A. A KhanP. Panduranga Rao

Construction & EPC

S. C. ManochaS. M. Roy

Solar

V. Saibaba

T. N. Subramaniyan K. Raja GopalK. Naga Prasad

S. M. Roy

Property Development

S. Pochendar

CSR

R S Sharat


Recent AwardsEPC-World Awards 2010 for “Outstanding contribution in Power & Energy sector (Generation)”.

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

Ab P C Ltd i d TERI C t A d f Aban Power Company Ltd received TERI Corporate Award for “ Environmental Excellence and Corporate Social Responsibility”

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”Most Impressive Public Relations Initiatives


DisclaimerNo representation or warranty, express or implied, is made as to, and no reliance should be placed on, thefairness, accuracy, completeness or correctness of the information or opinions contained in thispresentation. Such information and opinions are in all events not current after the date of this presentation.Certain statements made in this presentation may not be based on historical information or facts and maybe "forward looking statements" based on the currently held beliefs and assumptions of the management ofthe Company, which are expressed in good faith and in their opinion reasonable, including those relating tothe Company's general business plans and strategy, its future financial condition and growth prospects andfuture developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks uncertainties and other factors which mayForward-looking statements involve known and unknown risks, uncertainties and other factors, which maycause the actual results, financial condition, performance or achievements of the Company or industryresults to differ materially from the results, financial condition, performance or achievements expressed orimplied by such forward-looking statements, including future changes or developments in the Company'sbusiness, its competitive environment and political, economic, legal and social conditions. Further, pastperformance is not necessarily indicative of future results. Given these risks, uncertainties and otherfactors viewers of this presentation are cautioned not to place undue reliance on these forward lookingfactors, viewers of this presentation are cautioned not to place undue reliance on these forward-lookingstatements. The Company disclaims any obligation to update these forward-looking statements to reflectfuture events or developments.

This presentation is for general information purposes only, without regard to any specificobjectives, financial situations or informational needs of any particular person. This presentation does notj , y p p pconstitute an offer or invitation to purchase or subscribe for any securities of the Company by any person inany jurisdiction, including India and the United States. No part of it should form the basis of or be reliedupon in connection with any investment decision or any contract or commitment to purchase or subscribefor any securities. The Company may alter, modify or otherwise change in any manner the content of thispresentation, without obligation to notify any person of such change or changes. This presentation may notbe copied or disseminated in any manner


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35

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