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LancoInfratechLtd
InvestorPresenta>on
POWER EPC INFRASTRUCTURE SOLAR NATURAL RESOURCES
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Agenda
2
1CompanyOverview
3IndustryOverview
4PowerBusiness
5EPCBusiness
7NaturalResourceBusiness
8InfrastructureBusiness
9PropertyDevelopmentBusiness
10ExperiencedManagementTeam
6SolarBusiness
2Financials
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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)
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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.
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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
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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
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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
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PanIndiaPresence
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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
Plants under construction
Plants under operation
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
Plants under operation
Solar
Solar Power Plants Manufacturing at Rajnandgaon- Chattisgarh
Gujarat Solar
Rajasthan Solar
Mahatamil Mine
Aligarh –Kanpur Road
Tasra mine
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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
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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”
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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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