GAMMON INFRASTRUCTURE PROJECTS LIMITED September 2011 R
Gammon Infrastructure Projects - An Overview Established Incorporated in 2001 as Gammon Group s vehicle for undertaking infrastructure projects on public-private partnership (PPP) basis Undertake and develop infrastructure projects in sectors such as roads, bridges, ports, power, water and waste water, urban infrastructure Activity Provide services in other areas of project development such as operation and maintenance services and project advisory and funding services Participation in projects based on BOT, BOOT, BOO and other PPP models Portfolio Total project portfolio 20 projects 5 projects in operations phase 9 projects under development phase 6 projects under pre development phase Financial Consolidated income of Rs.34,590 lakhs for the year ended March 31, 2011 and Rs.33,950 lakhs for the year ended March 31, 2010 Consolidated net profit of Rs.1,717 lakhs for the year ended March 31, 2007 and Rs.2,562 lakhs for the year ended March 31, 2010 2
GIPL Assets at a Glance # Gammon Infrastructure Projects Limited ROAD PORTS POWER 100.0% Rajahmundry Expressway Limited (REL) 53 kms 73.8% Vizag Seaport Private Limited (VSPL) Pravara Renewable Energy Limited (PREL) 30 MW 100.0% 100.0% Andhra Expressway Limited (AEL) 47 kms 50.0% Indira Container Terminal Private Limited (ICTPL) Sikkim Hydro Power Ventures Limited (SHPVL) 66 MW 100.0% 97.6% Cochin Bridge Infrastructure Company Limited (CBICL) 700 mts 31.0% Blue Water Iron Ore Terminal Private Limited ( BWIOTL) Youngthangkhab Power Ventures Limited (YPVL) 261MW 100.0% 79.9%* Mumbai Nasik Expressway Limited (MNEL) 99.5 kms 100.0% Kosi Bridge Infrastructure Company Limited (KBICL) 10 kms 100.0% Gorakhpur Infrastructure Company Limited (GICL) 32 kms Operating Companies Under Implementation 50.7% Rajahmundry Godavari Bridge Limited (RGBL) 14.48 Km # Pre-development stage such as TADA and Adityapur SEZ, Thermal Project, Haryana and Punjab Biomass and Tidong Hydro 100.0% Patna Highway Projects Limited (PHPL) - 63.7 km * Will be reduced to 70% 3
Project Portfolio - Analysis Total Capitalization Achieved as on 31 March 2011 INR 36,913 Mn Average Balance Asset Life 19.52 years Effective GIPL Ownership** 75% Past Asset Capitalization Achieved (Mn) Mar 09 19,195 Mar 10 27,560 Mar 11 36,913 Financial closure achieved as at March 11 INR 45,500 Mn ** Includes Beneficial Ownership 4
Pre-development Phase Projects under development Operational Projects Diversified Project Portfolio Roads Ports Power and Urban Infra REL AEL CBICL MNEL VSPL KBICL GICL RGBL PHPL ICTPL BWIOTL SHPVL PREL YPVL Biomass Thermal TADA SEZ Adityapur Tidong Hydro 5
Focused Strategy Expansion based on core strengths Establish presence across sectors & geographies Leverage our strategic relationships R Build upon synergistic position in infrastructure development Achieve mix of market based & assured return projects Make an early entry & achieve dominant position in identified sectors 6
Diversified Project Portfolio
Geographical Diversification Youngthang Hydroelectric Gorakhpur By pass Biomass* Patna Muzaffarpur Haryana* Biomass Sikkim Hydroelectric Mumbai Nasik Expressway Kosi Bridge Mumbai Offshore Container Paradip Iron Ore Pravara Co-Generation Vizag Sea Port Rajamundry Expressway * Pre-development Stage Cochin Bridge Andhra Expressway Godavari Bridge 8
Blended Portfolio Asset Mix Provides Diversity Fixed Returns (Annuity) Rajahmundry Dharmavaram Expressway Fixed/Market Driven Returns (Annuity + Toll) New Mattanchery Bridge in Cochin Market Driven Returns (Toll) Vadape Gonde Road Dharmavaram Tuni Expressway Kosi Bridge Gorakhpur Bypass Patna Highway O&M Contracts Vizag Seaport Private Limited Pravara co-generation Sale of Power Godavari Bridge Rangit II Hydroelectric Project Youngthang Hydro Power Paradip Iron Ore Terminal Mumbai Offshore Container Terminal Balancing strategy - Significant upside potential with market-based projects and stable revenues from assured-return projects. 9
Operational and Under Development Projects at a Glance
Andhra Expressway Limited Project - Part of NH-5 connecting Dharmavaram Tuni section in Andhra Pradesh on Annuity Project Partners GIPL (including beneficial ownership - 100%) Client NHAI Project Length 47 Km Project Timelines Concession Ending Nov 2019 COD Sep 2004 Annual Annuity Rs.55.94 cr Project Cost & Sources Status Successfully Completed the first periodic maintenance activity in FY 2010 The Company received Bonus for early completion. Figures In Rs Crores As at Mar 11 Project Cost 248 Equity 40 Term Loan 233 Outstanding Debt 158
Rajahmundry Expressway Limited Project - Part of NH-5 connecting Rajahmundry Dharmavaram section in Andhra Pradesh on Annuity Project Partners GIPL (including beneficial ownership - 100%) Client Project Length NHAI 53 Km Project Timelines Concession Ending Nov 2019 COD Sep 2004 Annual Annuity Rs.59.24 cr Status Project Cost & Sources Successfully Completed the first periodic maintenance activity in FY 2010 The Company received Bonus for early completion Figures In Rs Crores As at Mar 11 Project Cost 256 Equity 40 Term Loan 261 Outstanding Debt 177
Mumbai Nasik Expressway Limited Project - Part of NH-3, the stretch connects Mumbai to Nasik Partners GIPL (80%), Sadbhav Engineering (20%) Client Project Length Project Timelines Concession Period Operations Period Project Cost & Sources NHAI 99.5 Km 20 yrs 17 yrs Figures In Rs Crores Status The project is partly operational since May 2010 and fully operational since Sep 2011 Estimated EPC Cost 621 IDCP & other soft cost 187 Project Cost 808 Equity 114 Term Loan 644 Construction Grant 50 Sources of Funds 808
Rajahmundry Godavari Bridge Limited Project - Bridge across river Godavari, starting on Kovvur side and joining NH-5 on Rajahmundry side Project Partners GIPL 50.74%, IFCI 48.98% and GIL 0.28% Client Project Length Bridge Length APRDC 14.48 Km 4.08 Km Project Site Project Timelines Concession Period Construction Period 25yrs 3 yrs Operations Period 22 yrs Expected COD Dec 2012 Project Cost & Sources Figures In Rs Crores Estimated EPC Cost 700 IDC and other soft cost 161 Project Cost 861 Equity 176 Term Loan 566 Construction Grant 119 Sources of Funds 861
Kosi Bridge Infrastructure Company Limited Project - Bridge across river Kosi on NH-57 State of Bihar on Annuity Basis Project Partners GIPL (100%) Client Project Length Bridge Length NHAI 10.64 Km 1.88 Km Project Timelines Concession Period 20 yrs Project Site Expected COD March 2012 Annual Annuity Rs.63.80 cr Project Cost & Sources Figures In Rs Crores Estimated EPC Cost 347 IDC and other soft cost 108 Project Cost 455 Equity 64 Term Loan 391 Sources of Funds 455
Gorakhpur Infrastructure Company Limited Project - Part of NH-28, the road bypasses city of Gorakhpur in the State of UP on Annuity Basis Project Partners GIPL (96.53% beneficial ownership) Client Project Length NHAI 32.28 Km Project Timelines Concession Period 20 yrs Expected COD June 2012 Annual Annuity Rs.97.20 cr Project Cost & Sources Figures In Rs Crores Estmated EPC Cost 552 IDC and other soft cost 193 Project Cost 745 Equity 170 Term Loan 575 Sources of Funds 745
Patna Highway Projects Limited Project - Part of NH-77, the road connects Hajipur to Muzaffarpur in the State of Bihar on Annuity Basis Project Partners GIPL (100%) Client NHAI Project Length 63.17 Km Project Timelines Concession Period 15 yrs Expected COD Feb 2013 Annual Annuity Rs.189.20 cr Project Cost & Sources Figures In Rs Crores Estimated EPC Cost 750 IDC and other soft cost 190 Project Cost 940 Equity 94 Term Loan 846 Sources of Funds 940
Vizag Seaport Private Limited Project Located in the Northern Arm of Inner Harbour, the terminal is a multi commodity Bulk Cargo Project Partners GIPL (73.76%), Lastin Holdings (26.24%) Client Project Capacity Visakhapatnam Port Trust 9.0 mt Project Timelines Concession Ending Nov 2031 COD Sep 2005 Number of Berths 2 [EQ 8 and EQ 9] Revenue Share 17.111% Project Cost & Sources Figures In Rs Crores As at Mar 11 Project Cost 317 Equity 107 Status * Includes only the term loan facility Term Loan 210 Outstanding Debt* 189
Indira Container Terminal Private Limited Project Located as offshore berths, the terminal is a container handling facility in Mumbai Port Project Partners GIPL (50.00%), Dragados S.P.L (50.00%) Client Mumbai Port Trust Project Capacity 1.8 m TEUs Project Timelines Concession Period 30 yrs Expected COD Dec 2012 Number of Offshore Berths 2 + 1* Royalty 35.064% Project Cost & Sources Figures In Rs Crores Estimated Project Cost 1015 Equity 203 Term Loan 812 Sources of Funds 1015 * We have an option to develop a third berth at a later stage
Blue Water Iron Ore Terminal Private Limited Project Located at Paradip port, the facility is a deep draft Iron Ore Terminal Project Partners GIPL (31.00%), Noble Group (51.00%) and MMTC (18.00%) Client Paradip Port Trust Project Capacity Minimum capacity of 10mT Project Timelines Concession Period 30 yrs Expected COD Nov 2014 Royalty 36.802% Project Cost & Sources Figures In Rs Crores Estimated Project Cost 569 Equity 184 Term Loan 385 Sources of Funds 569 Status The Company achieved the Financial Closure
Pravara Renewable Energy Limited Project Located at Pravaranagar, project is a Bagasse based Co- Generation Power Project Project Partners GIPL (100.00%) Client Project Capacity Project Timelines Dr. Padmashri Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana Ltd, Ahmednagar, Maharashtra) 30 MW Project Cost & Sources Figures In Rs Crores Estimated Project Cost 220 Equity 44 Term Loan 176 Sources of Funds 220 Concession Period 25 yrs post COD Expected COD Jan 2014 The project is conceptualized on a quasi barter principal as under: Revenue Mode Sale of power & steam to Co-operative & surplus power to MSEB PREL Supply to Sugar Factory Sugar Factory Supply to PREL Power @ Rs.3.05 / Unit Baggase @ Rs.650 / Ton Medium Pressure Steam Biogass @ Rs.650 / Ton @ Rs.200 / Ton (Baggase Equivalent) Low Pressure Steam @ Ready possession land Rs.175 / Ton with other clearances
Sikkim Hydro Power Ventures Limited Project Located on river Rimbi, a sub tributary of Rangit, the project is a run of the river plant Project Partners GIPL (100.00%) Client Project Capacity Project Timelines Concession Period Sikkim Power Development Corporation,GoS 66 MW 35 yrs post COD Project Cost & Sources Figures In Rs Crores Estimated Project Cost 495 Equity 148 Term Loan 347 Sources of Funds 495 Expected COD Dec 2015 Revenue Model Free power to GoS Merchant Power Project @ 12% of net available energy for the first 15 years @ 15% of net available energy for the next 20 years
Execution Capability and Operating Experience
Project Development Track Record REL 2.5 15 SEP-04 REL commissioned 70 days ahead of schedule AEL 2.5 15 OCT-04 AEL commissioned 30 days ahead of schedule CBICL 2.3 17.4 OCT-02 CBICL commissioned 10 months ahead of schedule Early collection of toll revenues VSPL 2 28 SEP-05 MNEL* 5.1 17 SEP-11 0 5 10 15 20 25 30 35 40 Year Construction Period Operational period * The Operation Period is assuming no extension 24
Expected Project Development - Timeline ICTPL* 5 25 DEC-12 Blue Water 3 30 NOV-14 PHPL 2.5 12.5 FEB-13 RGBL 3 22 DEC-12 Kosi Road * 5 15 MAR - 12 Gorakhpur By-Pass * 5 15 JUN-12 Pravara Co-Generation 2 23 JAN-14 Rangit II Hydroelectric project 35 DEC-15 0 5 10 15 Year 20 25 30 35 40 Construction Period Operational Period * The Operation Period is assuming no extension 25
Experienced Team and In-house Capabilities
GIPL Management Expertise Coupled with Entrepreneurial Spirit Abhijit Rajan Chairman & MD Himanshu Parikh Vice Chairman K K Mohanty MD R K Malhotra Executive Director Managing Director of GIL since January 1991 Chairman and Managing Director from April 2006 till date Wide experience in diverse fields Appointed as Executive Vice Chairman since Jul 2010 and Vice Chairman since April 2011 Managing Director since April 2011 Has spent 16 years with Srei Infrastructure Finance Limited (SREI) out of which 10 years as a whole time Director Executive Director since April 2011 Has spent over three decades with Gammon India Limited Parag Parikh Executive Director and CFO Kshitiz Bhaskar Head Business Development Kalpesh Pathak Head Energy and Urban Infrastructure Executive Director since August 2011 Has spent over a decade in GIPL in various roles and responsibilities Has spent over 7 years in GIPL in the areas of Business Development Has also contributed in the Ports sector development Been with GIPL since last 2 years but has spent overall more than 5 years in the Company He was earlier associated with Companies like Lehman Brothers, IDFC 27
GIPL Independent Directors C. C. Dayal Is a Chartered Accountant with a vast experience and expertise in Audit, Internal Audit, Taxation and Accounts Heads the Audit Committee Sanjay Sachdev Is a Lawyer with a masters degree in International Management Has an experience of over 14 years in Pension and Mutual Fund Industry Naresh Chandra Retired from the Indian Administrative Service in 1992 Served as a senior advisor to the Prime Minister of India, as Governor of Gujarat and as the Ambassador of India to the USA Sushil Chandra Tripathi Retired from the Indian Administrative Service in 1992 Nearly twenty years of service experience at senior levels in the State and Central Government and, on deputation, at international forum Kunal Shroff Currently the Managing Director at Chrys Capital Investment Advisors and has spent more than 15 years in investment advisory business Bachelor of Science in Computer Science with magna cum laude honors from Cornell University 28
In-house expertise Total number of employees at GIPL 325 (as of August 31, 2011) Proven Business Development Capabilities Dedicated Business Development team focused on strategic tie ups JVs with global players for existing and future projects Dedicated bidding teams across sectors such as Roads, Ports, Energy and Urban Infrastructure Core team of Finance professionals focused on debt and equity financing 29
Balanced Cash Flows Assured and Market Driven
Revenue Growth GIPL Performance Consolidated (in Rs lakhs) (Rs in mn) 40000 35000 30000 (Rs in mn) 33,950 34,590 25000 20000 21,339 15000 10000 5000 3,266 2,562 1,717 0 FY 2009 FY 2010 FY 2011 Total Income Net Profit 31
Strong Base of Assured Revenues Composition of Revenue 100% 90% 80% 70% 10.73% 3.45% 3.11% 3.37% 1.14% 5.36% 4.48% 1.72% 15.90% 26.66% 17.09% 60% 50% 40% 30% 20% 10% 11.33% 54.64% 31.03% 34.35% 36.93% 4.98% 33.71% 0% FY 2009 FY 2010 FY 2011 Annuity Revenues Road Operation & Maintenance Income from Port Operations Toll Proceeds Other Operating Income Other Non Operating Income 32
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