Investor Presentation

Transcription

1 2009 Investor Presentation

2 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights V2 June 09

3 The Indian Government has recognized Infrastructure as a key Impediment to Growth and hence encouraging Private Participation Need Need to to sustain sustain the the economic economic growth growth Increased Increased plan plan allocation allocation for for infrastructure infrastructure Encouraging Encouraging private private participation participation GDP growth USD bn 492 Others Private Sector Participation Power Roads Airports Railways Ports Total High GDP growth leads to increasing domestic consumption and higher capital expenditure Power Roads Railways Ports Airports Total X Plan ( ) XI Plan ( ) Infrastructure spend plan targets for the XI plan were revised from 4.6% to 7.5% of GDP Private Sector Participation is estimated at 29.6% of total spending in the XI plan Source: Asian Development Outlook, 2007 ; Consultation Paper, Planning Commission, 2007; Govt of India 1

4 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

5 GMR Group: A Diversified Conglomerate The GMR Group was established in 1976 and is a listed company on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). GMR Group has rapidly expanded into Infrastructure and other businesses: Infrastructure Airports Energy Highways Urban Infrastructure Agro Based Business Sports Franchisee GMR Industries Ltd Sugar plant in Sankili in AP having cane crushing capacity of 5000 tonnes per day Constructed and Commissioned Integrated Sugar complex in Haliyal having cane crushing capacity of 3,500 tonnes per day IPL Delhi Daredevils Sports Infrastructure, Development and Management Delhi Daredevils Corporate Social Responsibility GMR Varalakshmi Foundation The Foundation has been working with communities in the quest of improving lives and livelihoods since 1991 It focuses on Education, Health, Hygiene and Sanitation, Livelihood and Empowerment and Community Development The Group was also engaged in the Banking (ING Vysya) & IT (igate), which were divested with shift in focus to infrastructure. 2

6 GMR Infrastructure: Flagship company of the GMR Group GMR Infrastructure Limited (GIL) Infrastructure Developer, Owner & Operator AIRPORTS AIRPORTS Delhi Airport Development Hyderabad Airport Development Istanbul Airport Development ENERGY ENERGY Indian Businesses Power Projects (13 Nos) Operational (3 Nos 823 MW) Under development (10Nos-6200MW) Gross Capacity of 7023 MW HIGHWAYS Road Projects (7 Nos: 602 km) Annuity 255 km Toll 347 km 6 project operational URBAN INFRASTRUCTURE InterGen N.V Net Capacity MW Assets in Operation 7,658 MW located in UK (2,385 MW), Mexico (2,223 MW), Netherlands (820 MW) Philippines (460 MW) & Australia (1,770 MW) Assets in Construction 428 MW Assets in Development 2849 MW International Businesses 3,300 acres SEZ in Tamil Nadu 250 acres Aviation specific SEZ on Eastern side of Hyderabad Airport 250 acres Multiproduct General SEZ on Western side of Hyderabad Airport 250 acres at Delhi Airport 1000 acres at Hyderabad Airport 3

7 GMR Infrastructure: Indian Corporate Structure GMR Holdings Private Limited GMR Infrastructure Limited (GIL) ENERGY HIGHWAYS AIRPORT GMR Infrastructure International (Isle of Man) URBAN INFRASTRUCTURE 100% 74.0% 63.0% 100% 51.0% 100% GMR Energy Limited (GEL) 220 MW GMR Power Corporation Private Limited (GPCL) 200 MW Vemagiri Power Generation Limited (VPGL) MW 100% 74.0% 100% GMR Tambaram-Tindivanam Expressways Private Limited (GTTEPL) - 93 KMs GMR Tuni-Anakapalli Expressways Private Limited (GTAEPL) - 59 KMs GMR Ambala-Chandigarh Expressways Private Limited (GACEPL) -35 KMs 50.1% 40% GMR Hyderabad International Airport Limited (GHIAL) Delhi International Airport Private Limited (DIAL) Sabiha Gokcen International Airport (SGIA), Instanbul, Turkey 50.1% 63% GMR Krishnagiri SEZ Limited Delhi Aerotropolis Private Limited (DAPL) ## GMR Hyderabad Aerotropolis Limited (GHAPL) ## GMR (Badrinath) Hydro Power Generation Pvt Limited (GBHP) 300 MW 100% 100% GMR Kamalanga Energy Limted 1050 MW GMR Londa Hydro Power Ltd. 160 MW 100% GMR Bajoli Holi Hydropower Private Limited 180MW 100% 100% 100% GMR Jadcherla Expressways Pvt Limited (GJEPL) - 58 KMs GMR Pochanpalli Expressways Private Limited (GPEPL) KMs GMR Ulundurpet Expressways Private Limited (GUEPL) - 73 KMs 100% GMR Aviations Private Limited (GAPL) 63% 63% 51% GMR Hyderabad Aviation SEZ Limited (GHASL) ## GMR Hyderabad Multiproduct SEZ Limited (GHMSEL) ## OTHERS 89% GMR Energy Trading Limited 80% GMR Mining and Energy Pvt Limited Himtal Hydropower Company Pvt Ltd (Himtal) 250MW ## DAPL and GHAPL (shown under Property Development) are 100% Subsidiaries of DIAL & GHIAL respectively 73.00% GMR Upper Karnali Hydropower Public Ltd 300MW 100% GMR Chattisgarh Energy Private Ltd (1200 MW) Operating Companies Under Development Operating cum Development Percentage of holding represents our Direct and Indirect Shareholding The balance stake of upper karnali held 22.5% by ITD and 27% by NEA 5

8 GMR Infrastructure: International Corporate Structure Onshore GMR Holdings Private Limited (GHPL) 74.93% GMR Infrastructure Limited (GIL) 95% 5% 100% Loan Facility GMR Infrastructure International (Isle of Man) Malta HoldCo. (Borrowing Company) 100% Offshore Potential ListCos. 100% GMR Energy (Global) (Isle of Man) CCDs OCDs OCDs Malta HoldCo. (Bidding Company) InterGen N.V. (Netherlands) 50% 6

9 GMR Infrastructure: A Compelling Investment Story Leading Indian Infrastructure Player: Over INR 500 bn Investments planned over next five years PPP model to play significant role in the Infrastructure sector GMR is well positioned to benefit from this large Growth Opportunity Entry in the MSCI India index reinforces the Company s Credentials in Infrastructure Development Broad Based Infrastructure player:- Assets Portfolio Significant presence across high growth sectors like Airports, Power and Roads Consistently enjoyed early mover advantage in all the Business Segments Strong track record & established Player: Extensive experience of Developing and Executing projects Established a Reputation of Reliability and Timely Project completion Balanced revenue mix: Healthy mix of fixed and variable revenue streams across Airports, Power and Roads Strong Management Team: Experienced Management team backed by strong Global Partnership Significant Growth Opportunities: Plans to tap into new opportunities in India and Abroad in the infrastructure space 7

10 GMR Group: Partnership with Best in Class Global Players Europe s largest Cargo hub Europe s 2nd largest Passenger Airport Operator and Manager of Malaysia s 39 airports which comprise International, Domestic and Short Take-Off and Landing (STOL) ports Airports Largest Airport Retailer in Malaysia with 40 outlets in 4 airports India s Premier Infrastructure Finance Organization - over 332 projects financed in Power, Roads, Urban Infrastructure One of the leading Engineering and Construction companies in Turkey One of the Worlds largest diversified Organizations with a Market Capitalization of about USD400bn Power Korea s Largest Integrated Electric utility which controls approx 88% of Koreas generating capacity Global leader in Heavy Industries with Global presence in Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery and Construction Equipment Roads Malaysia's leading conglomerate in Infrastructure-Building, is a wholly-owned subsidiary of Khazanah Nasional Berhad, an Investment arm of the Government 8

11 GMR Infrastructure: Key Financials for FY 09 Net Revenue EBITDA EBITDA Margin 4

12 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

13 Passenger Traffic: Growth in India 9

14 Passenger Traffic In Leading Airports of India Passenger Traffic (In Millions) Domestic PAX Distribution in FY 2009 (Total PAX = 77.3 Mn) International PAX Distribution in FY 2009 (Total PAX = 31.6 Mn) Delhi and Hyderabad Airports control 26% of Domestic & 29% of International Passenger Traffic 10

15 Cargo Traffic In Leading Airports of India Domestic Cargo Distribution in FY 2009 (Total Cargo= 548 Thousand MT ) International Cargo Distribution in FY 2009 (Total Cargo= 1149 Thousand MT ) Delhi and Hyderabad Airports control 27% of Domestic & 28% of International Cargo Traffic 11

16 Hyderabad Airport: Development of fastest growing Airport in India India s First PPP Green Field Airport Operationalized on 23 rd of March 2008 Phase I Consortium Partners Sponsor Shareholding 63.0% 11.0% 13.0% 13.0% Project Overview Concession Period of years from 2008 to 2038 Land Available 5,500 acres Concession fee 4% of revenue (deferred till 11th year) Project Cost (Phase 1) USD 608 Mn (INR Bn) Means of Finance (In INR Bn) Equity :3.78; Debt:21.20; Grant: 1.07; Interest Free loan : 3.15 Project Features Air Side Facilities a) One of the longest Runways (4,260 m) with parallel Taxiway b) 42 Aircraft parking stands 30 Remote stands 12 Aerobridge facility c) 5 Cargo Parking Stands Development Highlights Development to be done in 4 Phases Proposed Capacities Phase I Phase IV PAX (in Mn ) Cargo (Metric Tonnes) 1,00,000 3,50,000 Number of Runways 1 2 Passenger Terminal Building Area 1.17 Mn Sq.ft 3.9 Mn Sq.ft Consortium comprising of Cowi of Master Planners Norway, Avia Plan of Denmark & Stup of Mumbai Airside and Landside Works Contractor Larsen & Toubro Airport Service Quality Rating (ASQ) given by Airports Council International (ACI) Rating of 4.40 (scale 1 to 5) in service standards Land Side facilities a) 146 Check-in counters ( self check-in 16) b) 46 Immigration counters c) 3 nos. of 90 meter & 1 no. 70 meter Baggage carousels d) Car Park facility (3700 cars) 12

17 Hyderabad Airport: Commercial Arrangements and Developments Aeronautical Operations Airport Authority of India (AAI) Prescribed Charges Non-Aeronautical Operations Area Partner Cargo operation JV with Menzies plc, UK Passenger Service Fees (PSF) Landing Charges Parking Charges X-Ray Baggage Charges Housing Charges In-flight kitchens Fuel farm operator Fuel farm suppliers Ground Handling Duty-free retail LSG Sky Chefs & Sky Gourmet Reliance industries Ltd Reliance, IOCL, BPCL, HPCL & Shell Menzies Aviation & Bobba, Air India & SATs Nuance 2525 sq.mt.) UDF Development Fees (UDF) Profile Domestic Passengers Charges Rs 375 (inclusive of all Taxes) per Departing Domestic Passenger Commencement Date 23 rd August 2008 MRO JV with Malaysia Airlines Airport advertisement Laqshya F&B HMS Host Lounge management Plaza Premium Lounge (3Nos) Hospitals Apollo Hospitals (17 Beds) Car Parking Tenaga Car parking of Malaysia International Passengers Rs 1000 (inclusive of all Taxes) per Departing International Passenger 23 rd April 2008 Telecom Services Book Stores Forex Counters Tata Teleservices Landmark and Odyssey Weizmann and Travelex Health Health & Glow & Dabur 13

18 Hyderabad Airport: Surface Connectivity Airport Roads Connectivity Airport Location: 25 km / 19 miles from Begumpet The major access points to the new airport include: a) Four-lane National Highway NH-7 with service lanes (on its west) b)four-lane Srisailam State Highway (on its east) c) Proposed eight-lane km access controlled Outer Ring Road (ORR) d) Widening of 52-km Inner Ring Road with many flyovers with six lanes Four-lane 11.6 km long P V Narasimha Rao Elevated Expressway e) Multiple traffic management initiatives to decongest city roads f) Alternate four-lane road P7 to decongest Srisailam Highway g)other alternate modes being worked out with State government include: Multi-Modal Transportation System (MMTS) Mono Rail Transport System (MRTS) h) Proposed Dedicated Airport Train from city to Airport 40 km stretch Airport Commuting Facilities to be covered in around 25 minutes a) 700 Radio taxis with GPS Vehicle tracking system & 100 executive cars b) 28 brand new custom designed buses service with Passenger friendly amenities as part of Aero Express bus service 14

19 Hyderabad Airport: Property Development (Aerotropolis) Commercial Property Development (1,000 acres) Lease Period: years Permitted developments - Commercial and Residential CB Richard Ellis and CPG of Singapore have completed preparation of the Development Plan for Property HVS International has completed the feasibility study for Budget Hotel/Service Apartments Developing a Health Corridor spanning over 25 acres comprising of Hospitals, Medical Research laboratories etc. Airport Hotel (Novotel) is Operational from 1 st Oct 08 o Number of Rooms 305; Star Status - 4 Star Special Economic Zones (500 acres) Multiproduct General SEZ (250 acres) IT & IT enabled services, Bio-technology, Textile (Garment & apparels) and electronics industries in processing zone Aviation Sector Specific SEZ (250 acres) Aircraft Maintenance and Manufacturing, Assembling or Repairing of Avionics Components GHIAL and Malaysia Airlines Aerospace Engineering (MAE) to set up a 50:50 Airframe Maintenance Repair and Overhaul (MRO) Company Over 36 years of extensive experience in MRO business Certified MRO organisation by 31 National Aviation Authorities incl. Europe, US and Indian Authorities Strong technical and engineering capabilities for Boeing and Airbus aircrafts 4 MRO bays to start operations by Q GHIAL & CFM will set-up CFM56 maintenance and training centre at Hyderabad identical to France, US and China Initially provide maintenance and inspection of CFM 56 5B and CFM56 7B engines, which power majority of Airbus 320 and Boeing 737 family CFM is JV between Snecma (Safran Group) of France & GE, USA the world s leading manufacturers of aircraft 15

20 Hyderabad Airport: Glimpses 16

21 Hyderabad Airport: Business Development Initiatives Airlines Operations Currently: 12 Foreign Airlines ( British Airways, Lufthansa, KLM, Singapore Airlines, Thai Airways, Malaysia Airlines, Emirates, Gulf Air, Qatar Airways, etc.) 10 Domestic Airlines (Air India, Jet Airways, Kingfisher Airlines, Indigo, Spicejet, etc.) Expected: Etihad Airways to start operations from June 09 In dialogue with China Eastern, Delta Airlines, Tiger Airways, Turkish Airlines, Kenyan Airlines, Iran Airlines Planned: Initiated dialogues with NACIL, Jet Airways and Kingfisher Airlines to create a hub in Hyderabad Quality Initiatives GHIAL is one of the first Airports in South and South East Asia to be certified as ISO (Information Security Management System) complaint Established Internal Passenger Satisfaction Feedback system through touch screen KIOSK to understand and analyze the passenger satisfaction levels Introduced Web-based Suggestion Scheme Enrolled to participate in ACI-ASQ Customer Satisfaction Benchmarking Program Initiated Scientific Problem Solving methodology to address the process improvement and cost rationalization issues Recent Developments Airline Operations British Airways started operations from 7 th Dec 08 Air Arabia started operations from 26 th Oct 08 Plan to set up a world class centre for perishable cargo Animal Quarantine for movement of Laboratory animals, Pets and live stocks has been setup effective April 2009 Recent Recognitions GHIAL won the Leadership in Energy and Environmental Design (LEED) silver rating by US Green Building (US GBC) and becomes the first airport in Asia and the third Airport globally to have been recognized by this award Passenger Terminal Building of GHIAL won the Outstanding Concrete Structure award 2008 of Andhra Pradesh by Indian Concrete Institute Recognition from ORBIS for Airport Related CSR Activities 17

22 Hyderabad Airport: Historical Growth Pattern Aircraft Aircraft Movements Movements (In (In Thousands) Thousands) 35% Growth 19% Growth -2.4% Growth Cargo Cargo Tonnage Tonnage (In (In Thousand Thousand Tonnes) Tonnes) 28% Growth 14% Growth 6% Growth 32% Growth 41% Growth 26% Growth 6% Growth Total Total Passengers Passengers (In (In Millions) Millions) The Passenger Traffic has grown at a CAGR of 23% over the past 5 years. 27% Growth 42% Growth 43% Growth 21% Growth -11% Growth For the period ended FY 09, the Composition of Domestic to International Passengers has been 75:25. The Cargo Traffic has grown at a CAGR of 15% over the past 5 years For the period ended FY 09, the Composition of Domestic to International Cargo has been 45:55. The Air Traffic Movements have grown at a CAGR of 24% over the past 5 Years. For the period ended FY 09, the Composition of Domestic to International ATMs has been 85:15. 18

23 Hyderabad Airport: Operational Performance (12M: FY 09) Total Passengers (in Thousands) ATM Performance Daily Average 12M FY09: Domestic International 4293 Cargo Tonnage (intonnes) (intonnes) Daily Average 12M FY09: Domestic 67 International 81 The Passenger Traffic for FY09 has declined by 11.00% over that of FY08 For the year ended FY09, the Composition of Domestic to International Passengers has been 75:25 as against 79:21 in FY08 The Cargo Traffic for FY09 has grown by 6.00% over that of FY08 For the year ended FY09, the Composition of Domestic to International Cargo has been 45:55 as against 53:47 in FY 08 The Air Traffic Movements for FY09 have decreased by 1.33% over that of FY08 For the year ended FY09, the Composition of Domestic to International ATMs has been 85:15 as against 87:13 in FY08 19

24 Hyderabad Airport: Quarterly Operational Performance (Q4: FY 09) Total Passengers (in Thousands) ATMs Performance Cargo Tonnage (InTonnes) (InTonnes) The Passenger Traffic for FY09 Q4 has declined by 0.68% over that of FY09 Q3, as compared to a 2.13% decrease in FY09 Q3 over that of FY09 Q2 For the period ended FY09 Q4, the Composition of Domestic to International Passengers has been 75:25 as against 73:27 in FY09 Q3 and 74:26 in FY09 Q2 The Cargo Traffic for FY09 Q4 has declined by 5.2% over that of FY09 Q3, as compared to a 4% decline in FY09 Q3 over that of FY09 Q2 For the period ended FY09 Q4, the Composition of Domestic to International Cargo has been 46:54 as against 45:55 in FY09 Q3 and FY09 Q2 The Air Traffic Movements for FY09 Q4 has decreased by 2.20% over that of FY09 Q3, as compared to a 3.85% increase in FY09 Q3 over that of FY09 Q2 For the period ended FY 09 Q3, the Composition of Domestic to International ATMs has been 84:16 as against 83:17 in FY 09 Q3 and 85:15 in FY09 Q2 20

25 Hyderabad Airport: Financial Performance In Rs millions INR mn FY09 Gross Revenue (Quarterly) Gross Revenues 3,860 Aeronautical Revenues 2,058 1,011 1,077 1,041 Non-Aeronautical Revenues 1,802 Less: Annual Fee to AAI 163 Net Revenues 3,697 Operating Expenses 2,266 EBIDTA 1,431 EBIDTA (Quarterly) Other Income 36 Interest and Finance Charges 1,536 Depreciation 1,122 PBT (1,191) PAT (1,210) Cash Profits (88) 21

26 Delhi Airport: Modernization and Development of Premier Airports in India Modernization Of Existing Terminals (T1 & T2) Completed In December 2008 Construction Of Greenfield Terminal(T3) To be Completed By March 2010 Development Highlights Consortium Consortium Partners Partners Sponsor Shareholding 54.0% 10.0% 10.0% 26.0% Development to be done in 5 Phases Proposed Capacities Phase1 Phase V Completion Date Pax capacity 46 Mn 100 Mn Cargo capacity 0.5 Mn tons 3.6 Mn tons Runways 2 4 Passenger Terminal Building Area 5.5 Mn Sq.ft 17.2 Mn Sq.ft Design Engineers Third Runway & Terminal 3 Owners Engineers GMR acquired 3.9% stake from IDF and issued fresh 13 mn shares of GIL in June 09 Mott McDonald L&T TCE, Lahmeyer and Parsons Brinckerhoff Financing Financing Plan Plan (Phase (Phase I) I) Source Contribution ($ Mn) Contribution (INR Mn) Equity including internal ,500 accruals (*) Development Fees ,270 Interest Free Deposits 190 9,120 Loan from FIs/Banks 1,039 49,860 Total Estimated Project Cost 1,870 89,750 * - Additional equity brought in by shareholders Rs Mn towards the project Project Overview Concession period of years from 2006 to 2036 Revenue Share % shared with AAI Land 5,100 acres Estimaited Project Cost USD 1,870 Mn (INR Bn) (Phase I) 22

27 Delhi Airport: Construction of Phase 1A Finalized Landside Facilities Terminal T 1 Domestic Departure Terminal (A & D) New Terminal with handling capacity of 10 Mn pax New Departure Terminal Inaugurated on 26 th February 2009 Commenced Operations Area of 350,000 sq. ft. 72 Check in counters 16 Security Channels In line Baggage screening Domestic Arrival Terminal (C) Capacity expansion to 8 Mn pax 100% Complete and Operational Terminal T 2 Refurbishment T 2 Terminal Refurbishment Refurbishment of International Terminal with increase in annual capacity from 5 mn pax to 8 mn pax 3-level In-line baggage screening and Handling system Increase in length of 4 Baggage Reclaim belts Entry gates increased from 4 to 8 Check in counters increase from 78 to 100 Check in Concourse expansion from 4,500 sqm to 6,500 sqm No of X-ray units increase from 8 to 15 Emigration counters increase from 28 to 52 Immigration Counters increase from 28 to 48 Security Channels increase from 10 to 22 8 new In-line Baggage Screening Systems 100% Complete and Operational Airside Facilities 3 rd Runway of 4,430 meters and New Rapid Exit Taxiways commissioned and operational Fire stations, New Crash Fire Tenders & associate infrastructure New Airside Cleaning Equipments, Automated Grass cutting and Improved Lighting and Signage 23

28 Delhi Airport: Construction Status of Terminal T3 (Phase 1B) Key Key Features Features Phase Phase 1B 1B Development Development ( Completion Completion by by Mar Mar 2010) 2010) Airside Facilities 75 Aerobridges 48 Contact Stands 20 remote parking bays General Aviation facilities Landside Facilities 168 Nos Check in Counters 14 Nos In-line Baggage Reclaim belts. Terminal Building T3 of 5.2 million sq. ft with annual capacity of 34 Million 90 Walklators, 47 Escalators, 70 Lifts & 200 Washrooms Multi-level Car Parking, Taxi Staging & Bus Parking 4,300 lots Lounge Area of sq. m. High Speed Rail Link DMRC Expansion/Up gradation of Utilities (Sewerage, Power, Water) Capital Capital Work Work in in Progress Progress (T3 (T3 Terminal) Terminal) Particulars FY 09 Q2 FY 09 Q3 Main Passenger Terminal Building 51% 62.31% Integrated Terminal Piers Civil works All Major Procurement Contracts Awarded Total Manpower at Site - DIAL & Project Management Contractor : Subcontractor: 25,000 at present 55% 65.20% Financial Financial Arrangement Arrangement The Financial Closure document was signed on 7 th Dec 07 Rupee Term Loan of Rs.3650 Crores from 10 Domestic Banks - Tenure 17 years Door-to-door - PLR Linked Interest Rate (Currently 10.0%-10.5%) with a reset clause of every 3 years. Foreign Currency Loan of USD 350 Million from 8 Banks - Tenure 13 years Door-to-door - Interest Rate: Libor bps Total Capital Expenditure till 31 st March 09 is Rs.6,200 Crores Rupee Loan Disbursed: Rs.3,111 Crores with Debt to Equity ratio of 1.25:1 at all times Shareholders Funds infused comprising of Equity Rs crores, Advance against Lease Deposits Rs 1250 crores DIAL DIAL working working on on aggressive aggressive Commissioning Commissioning Schedule Schedule Airport Capacity Time Changi Airport 22 Million 76 Months Heathrow T5 25 Million 60 Months Beijing Airport T3 45 Million 60 Months IGI Airport T3 34 Million 37 Months 24

29 Delhi Airport: Glimpses of Phase 1A and 1B Domestic Domestic Terminal Terminal Phase 1A Terminal Terminal 3 Phase 1B International International Terminal Terminal 25

30 Delhi Airport: Master plan for World Class Passenger Terminal by 2010, wellin-time for Commonwealth Games Phase I Master Plan1 1 Existing Domestic Terminal (T1) Existing International Terminal Building New Integrated Terminal (T3) by 2010 Land Bank of 250 acres New Runway (3) 4,430 Mts *Figure not to scale Metro Rail Developer DMRC Operator Reliance No. of Stations 6 1. New Delhi Railway Station 2. Shivaji Stadium 3. Moti Bagh 4. Aerocity Station (inside airport) 5. Airport Station (inside Airport) 6. Dwarka Sector 2 Efficient planning to minimize impact on existing operations 26

31 Delhi Airport: Commercial Arrangements and Developments Aeronautical Aeronautical Operations Operations Airport Authority of India (AAI) Prescribed Charges Passenger Service Fees (PSF) Landing Charges Parking Charges X-Ray Baggage Charges Housing Charges Airport Development Fees (ADF) Profile Charges Domestic Passengers Rs 200 (inclusive of all Taxes) per Departing Domestic Passenger International Passengers Rs 1300 (inclusive of all Taxes) per Departing International Passenger Non-Aeronautical Non-Aeronautical Operations Operations Area Partner Duty free Retail Alpha Airport till 2010 Duty free Retail (T3) Aer Rianta (2010 onwards) Advertisement Times Innovative Media Pvt Ltd till 2010 Ground Handling Cargo Handling Car Parking In Flight Kitchen Hospitals Food & Beverages (T3) Menzies Bobba and Combata, WFS and Bird Group Bird Group and World Flight Services (WFS) Garuda Aviation Services Pvt. Ltd. (T2) Mahesh & Sunny Car Park (T1) Ambassador Apollo SSP Catering India Ltd.; Devyani International Ltd.; Travel Food Services Pvt. Ltd. Amount collected through DF would not in any case exceed a ceiling of Rs.1827/- crores exclusive of Taxes (NPV as on ) ADF would be charged for a period of 36 months w.e.f ADF would not be subjected to Revenue sharing Aeronautical Charges Hike A 10% hike in Aeronautical Charges (Landing charges, Parking charges, Passenger Service Fees, X-Ray baggage charges, Housing charges) has been approved with effect from 16 th February

32 Delhi Airport: Business Development Initiatives Airline Operations Currently 58 Foreign Airlines (Air Arabia, Air France, Air China International Corp., Air France, American Airlines, Austrian Airlines, British Airways, Emirates, Gulf Air, Malaysia Airlines, Lufthansa, Kuwait Airways etc.) 10 Domestic Airlines (Jet Airways, Kingfisher Airlines, Spice Jet, Indian Airlines, Indigo etc.) Quality Initiatives Received a Rating of 3.26 for Quality standards on the ASQ Rating Scale OMDA schedule 3 compliance: Objective Service Quality requirement as per OMDA Identified processes are monitored,measured as per target set by AAI and action initiated for improvement in grey areas. ISO9001:2000 Quality Management System: Ensure having basic system in place Continual improvement of processes OMDA compliance 28

33 Delhi Airport: Historical Growth Pattern Aircraft Aircraft Movements Movements (In (In Thousands) Thousands) Cargo Cargo Tonnage Tonnage (In (In Thousand Thousand Tonnes) Tonnes) 22% Growth 20% Growth 14% Growth -6% Growth 17% Growth 11% Growth 2% Growth 11% Growth -1.6% Growth 13% Growth Total Total Passengers Passengers (In (In Millions) Millions) The Passenger Traffic has grown at a CAGR of 17% over the past 5 years. 23% Growth 27% Growth 26% Growth 17% Growth -4.7% Growth For the period ended FY 09, the Composition of Domestic to International Passengers has been 66:34. The Cargo Traffic has grown at a CAGR of 8% over the past 5 years. For the period ended FY 09, the Composition of Domestic to International Cargo has been 30:70. The Air Traffic Movements have grown at a CAGR of 12% over the past 5 Years. For the period ended FY 09, the Composition of Domestic to International ATMs has been 73:27. 29

34 Delhi Airport: Operational Performance (FY 09) Total Passengers (in Thousands) ATMs Performance Daily Average FY09: Domestic International Daily Average: Domestic International 163 Cargo Tonnage (InTonnes) (InTonnes) Daily Average: Domestic International 816 The Passenger Traffic for FY09 has declined by 4.70% over that of FY08 For the year ended FY09, the Composition of Domestic to International Passengers has been 66:34 as against 70:30 in FY08 The Cargo Traffic for FY09 has decreased by 1.52% over that of FY08 For the year ended FY09, the Composition of Domestic to International Cargo has been 30:70 as against the same in FY08 The Air Traffic Movements for FY09 have increased by 1.80% over that of FY08 For the year ended FY 09, the Composition of Domestic to International ATMs has been 72:28 as against 74:26 in FY08 30

35 Delhi Airport: Quarterly Operational Performance (QoQ:FY 09) Total Passengers (in Thousands) ATMs Performance Cargo Tonnage (InTonnes) (InTonnes) The Passenger Traffic for FY09 Q4 has increased by 5% over that of FY09 Q3, as compared to a 12% increase in FY09 Q3 over that of FY09 Q2 For the period ended FY09 Q4, the Composition of Domestic to International Passengers has been 65:35 as against 62:38 in FY09 Q3 and 64:36 in FY09 Q2 The Cargo Traffic for FY09 Q4 has increased by 1.44% over that of FY09 Q3, as compared to a 12.97% decrease in FY09 Q3 over that of FY09 Q2 For the period ended FY09 Q4, the Composition of Domestic to International Cargo has been 30:70 which same as in FY09 Q3 and FY09 Q2 The Air Traffic Movements for FY09 Q4 have decreased by 9.3% over that of FY09 Q3, as compared to a 11.91% increase in FY09 Q3 over that of FY09 Q2 For the period ended FY 09 Q4, the Composition of Domestic to International ATMs has been 72:28 as against 74:26 in FY 09 Q3 and 76:24 in FY09 Q2 31

36 Delhi Airport: Delhi Aerocity Land Bank Available at IGI, New Delhi Core Airport infrastructure *LP = Land Parcel Majority of Land Bank NH 8 Radisson Gurgaon IGI airport is spread over 5100 acres of land out of which 5% (250 acres) can be used for commercial development by DIAL Land Bank to be divided into Multiple Land Parcels, which would be developed in a phased manner ~ 80% of our land bank is located next to NH-8, straddling across the main access to airport in form of large, contagious land parcels. Development Vision Delhi Aerocity Commercial development at airport envisages development of an alternate commercial hub, right in the heart of NCR. Master plan, by YRM & PF, details out a world class development comparable to the best & most sought after business districts in the world. Hospitality District Location vis-a-vis the National Capital Territory would lend a dual advantage of extremely central location with effective connectivity and proximity to demand Hospitality District, the first phase of development, would mainly constitute of hospitality assets across segments / categories & address the acute shortage of quality hospitality & conferencing facilities in NCR 32

37 Delhi Aerocity Phase I: Hospitality District Hospitality District Highlights First of its kind development with hotels from luxury to budget categories. Multimodal connectivity through metro & expressway to NCR Boasts of possibly the first Planned High Street of the country along a 800 m long landscaped, pedestrian walk way Highly secure environment, integrated with airport security cover Bid submission window closed on 15 th December 08 and has attracted bids from reputed national & international hospitality players Transaction Structure approved by AAI as follows: Annual License Fees to be quoted in Rs. Per Sq.Ft. with an Escalation of 5.5% year-on-year basis Refundable Security Deposit equivalent to 3 years average of the aggregate Annual License Fees for the tenure of the Lease agreements Deposits received: Upfront Lease Deposit INR 5960 Mn ( 276 Mn per acre) Infrastructure Deposit - INR 2866 Mn (133 Mn per acre) 45 acres for Development (13 Asset areas) Total GBA (FSI) = 6.12 mn sft Hospitality = 10 assets (5.04 mn sft) Commercial = 3 assets (1.08 mn sft) Key Statistics Metro station Scope of Development DIAL has been allowed additional eighteen usages catering from Commercial, Office to Residential which is incidental and supplemental to the airport usage. Total Area Bid out: 22 acres (7 land parcels) to Hyatt, Accor, Lemon Tree, Dusit, Aria Hotels and Hyatt 33

38 Delhi Airport: Annual Financial Performance INR mn Gross Revenues 9,477 8, Aeronautical Revenues 3,421 3, Non-Aeronautical Revenues 6,056 5, Less: AAI Revenue Share 4,406 4, Net Revenues 5,071 4, Operating Expenses 4,444 3, EBIDTA Other Income Interest and Finance Charges Depreciation PBT (342) PAT (235) Cash Profit Cash Accruals

39 Delhi Airport: Quarterly Financial Performance INR mn Q4 FY09 Q4 FY08 Gross Revenues 2,391 2,495 Gross Revenue Aeronautical Revenues Non-Aeronautical Revenues 1,525 1,677 Less: AAI Revenue Share 1,110 1,160 Net Revenues 1,281 1,335 Operating Expenses 1,156 1,177 EBIDTA EBIDTA Other Income (20) 25 Interest and Finance Charges Depreciation PBT (385) 144 PAT (26) 7 Cash Profit

40 Sabiha Gokcen International Airport at Istanbul in Turkey Capacity Expansion to 25 million Pax to be completed by end 2009 Consortium Consortium Partners Partners Sponsor Shareholding 40% 40% 20% Commercial Commercial Partnerships Partnerships F & B Contract H&C Carparks Self Operated Cargo Warehouse Operations Ground Handling Operations Duty Free Business Construction of New Terminal Building System Logistics Operated by subsidiary Setur, KOC Group GMR Limak Joint Venture Project Project Features Features International Terminal - Enclosed Area 20,000 sqm Domestic Terminal - Enclosed Area 3,500 sqm Capacity 6.0 mn Cargo Terminal - Enclosed Area 7,500 sqm -Capacity 145,000 tons - Cold air rooms 5Nos Runways and Parallel Taxiway 45 m x 3,000 m Apron Parking Capacity 44 Planes Project Project Overview Overview Concession period of 20 years from May 2008 onwards Concession Period 20 years (including construction period of 30 months*) Concession Fee In lieu of revenue share, EUR1.93bn, to be paid in 20 years with no fee payable in first 3 years Estimated capex Euro 451 millions Means of Finance Equity: 115; Debt: 336 Airport Operations taken over on 1 st May 2008 Financial Closure June 2008 EPC Contractor GMR Limak Joint Venture Master Planner Ove Arup 67% Capital Work in Progress achieved as on 30 th April

41 Sabiha Gokcen International Airport: Operational Performance Total Passengers (in Thousands) Daily Average CY 08: Domestic 7644 International Domestic International Air Traffic Movements Domestic International Daily Average CY 08: Domestic 71 International The Passenger Traffic for FY 08 has increased by 15% over that of FY08 For the year ended FY08, the Composition of Domestic to International Passengers has been 64:36 as against 68:32 in FY07 The Air Traffic Movements for FY08 have increased by 12.52% over that of FY07 For the year ended FY 08, the Composition of Domestic to International ATMs has been 58:42 as against 60:40 in FY07 37

42 Sabiha Gokcen International Airport: Operational Performance Total Passengers (in Thousands) ATMs Performance The Passenger Traffic for CY09 Q1 has increased by 29% over that of CY08 Q1. For the period ended CY09 Q1, the Composition of Domestic to International Passengers has been 72:28 as against 67:33 in CY08 Q1. The Air Traffic Movements for CY09 Q1 has increased by 7% over that of CY08 Q1. For the period ended CY 09 Q1, the Composition of Domestic to International ATMs has been 84:16 as against 64:36 in CY 08 Q1 and 61:39 in CY08 Q1 38

43 Sabiha Gokcen International Airport Development plan for the Sabiha Gokcen International Airport in Istanbul Hotel VIP Car Park Existing Terminals New Terminal 38

44 Sabiha Gokcen International Airport: Future Business Prospects Passenger Traffic (in Mn) Air Traffic Movements ( 000) Domestic International Total Domestic International Total Key Development Opportunities Catchment Population Istanbul s Anatolian side has its own population of 5-6 Mn Industrial and Residential areas like Kocaeli, Bursa and Izmit around the airport has a 20 Mn plus population Techno park (90 hectares) and conference/hotel facilities (20 acres) would contribute to the traffic Racing F1 track in the vicinity has been a major attraction for the past 2 years coupled with stress on tourism Takeoff Prospects Ataturk Airport (the other Istanbul Airport) caters to 149 destinations compared to 64 by SGIA leaving good scope for newer routes Ataturk is constrained by capacity leading to delays Quick turnaround and no slot restriction SGIA is best positioned to handle its catchment area and spillover from Ataturk Major international destinations in Germany, UK, Scandinavia, Russia and CIS countries would contribute to growth as many turk migrants reside over there, besides tourist traffic 39

45 Sabiha Gokcen International Airport: Turkey Overview Turkey s Economic Overview 15 th largest economy and among the top ten emerging markets Total population of about 73 million with nominal GDP of about USD 657 bn (2007) Istanbul has a population of about 14 Mn with 35% residing on the Anatolian side Turkey s Aviation Sector Passenger traffic growing at 25% plus per annum since 2003 fuelled by Low cost Carriers. Turkey comprises of 52 Airports having the State Authority responsible for operations Tourist Traffic to Turkey is about 23 Mn pax (5.5 Mn pax from Istanbul in 2007) The Annual Passenger Traffic in Turkey has been 66 Mn pax (Domestic 29 Mn and International 37 Mn CAGR 15% 40

46 SGIA : Financial Performance INR mn FY09* Gross Revenue INR mn Gross Revenues 2,669 Aeronautical Revenues - Non-Aeronautical Revenues 2,669 Less: Revenue Share - Net Revenues 2,669 Operating Expenses 2,573 EBIDTA 96 Other Income (67) EBIDTA Interest and Finance Charges 14 Depreciation 394 PBT (379) PAT (319) Cash Profit 75 * 40% share of GIL 41

47 Outline of Emerging Opportunities in Airports Sector in India Addition Addition of of Fleet Fleet Size Size in in India India Airport Airport Categorization Categorization in in India India Category Numbers International 16 Major Domestic 22 Custom 8 Other Domestic 74 Total 120 Airlines Airlines Operating Operating in in India India Presently, the various airlines are operating only through 61 airports. The remaining are lying unutilised, at best handling occasional aircraft operations. Out of the International Airports 12 are with AAI, 5 are under Joint Ventures and 2 are Greenfield Airports Airport Airport Infrastructure Infrastructure Development Development The XI plan targets Infrastructure spend of USD 8bn on Airports Total No. of Airlines Operating in India: 71,Domestic: 11, International: 60 Delhi, Hyderabad, Bangalore and Mumbai airport have already been privatized Kolkata and Chennai are being developed by AAI 35 non-metro airports are under the AAI s up gradation plan Airports Economic Regulatory Authority of India Act, 2008 has come into force w.e.f Development of Merchant Airport Policy is under consideration 42

48 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

49 Operational Power Projects Facility Mangalore, Karnataka Relocation Plan GMR Energy Limited Contracted Capacity 220 MW (235 MW post conversion) Barge-mounted power plant would be converted to gas fired Fuel Naptha COD 2001 PPA 7yr PPA finished in 2008; currently merchant operation power plant & relocated to Kakinada (AP) from Jan 2010 Expected to be operationalized by March, 2010 EGoM has cleared Gas allocation for 70% of plant requirement from KG Basin Facility Chennai, Tamil Nadu Strengths GMR Power Corporation Pvt. Ltd. Contracted Capacity 200 MW GMR Energy holds 51% stake Fuel Low Sulphur Heavy Stock ISO and OHSAS compliant COD 1999 Dr. M.S. Swaminathan Award for being an environment friendly PPA 15 Years till 2014; minimum offtake at 68.5% PLF Take or pay fixed charges project Facility Vemagiri, Andhra Pradesh Strengths Vemagiri Power Generation Ltd. Contracted Capacity Fuel COD 2006 PPA Contracted 370 MW (Installed Capacity 388.5MW) Natural Gas 23 Years at 80% PLF Take or pay of fixed charges PPA with APTRANSCO is being amended for selling 20% of contracted capacity (74 MW) on Merchant Basis and for reducing PPA tenure to 15 years. Gas Sale & Purchase Agreement executed with RIL and Gas being supplied from KG Basin since April

50 Pipeline of Power Projects Under Development Facility Kamalanga Chhattisgarh Vemagiri (Expansion) Location Orissa Raipur Andhra Pradesh Capacity 1,050 MW (3 X 350 MW) 1,200 MW 740 MW Fuel Coal Coal Natural Gas Type of Project BOO (MoU with Govt of Orissa) BOO (MoU with Govt of Chhattisgarh) BOO Expected CoD Land Acquisition Fuel Supply Arrangement Power Off-take arrangement Environmental Clearance Total Land required for the project is 1,105 acres. The land acquisition is expected to be acquired by June/July Rs. 600 Mn has been deposited with Industrial Development Corporation of Orissa for acquisition of Private Land Coal linkage of 500 MW obtained from Mahanadi Coal Fields. Tapering coal linkages for balance 550 MW has been approved 112 mn MT coal from Rampia & Dip Side Rampia coal block allocated to GMR Energy. PPA with GRIDCO for 25% power and remaining to PTC PTC entered in agreement with Haryana for 300 MW Plan to sell 20% power on Merchant basis Environment & pollution clearance obtained Power Assets Under Development State Govt has granted approval for 1050 acres of land of which 200 acres of private land have been acquired. Further land would be acquired by end-july State Govt. has recommended to the Ministry of coal for coal linkage. Plan to sell power through mix of long term PPA & merchant power PPA with CSEB which has right to purchase upto 30% power during first 20 years Plan to sell 30% power on Merchant basis Presentation made to MoEF. Final approval expected by August Adequate land available for expansion in existing VPGL plant facilities Representation made to Ministry of Petroleum and Natural Gas for gas allocation Plan to sell 100% power on merchant basis Terms of Reference for conducting EIA has been approved by MoEF Project status Financial Closure achieved for outlay of US$950 Mn EPC contract awarded to SEPCO, China in Sept 2008 Department of Water Resources has allocated 30 Cusecs of water from River Brahamini. Implementation Agreement signed with Govt. of Chhattisgarh. GoC has principally agreed to allocate 32 MCM from river Mahanadi. Notice Inviting Tenders released for BTG and BOP. Offers received and are under evaluation. DPR prepared by Tata Consulting Engineering Ltd Notice Inviting Tenders on ICB basis have been published. Award of EPC expected by August,

51 Pipeline of Power Projects Under Development Power Assets Under Development Facility Alaknanda Talong Bajoli Holi Upper Karnali Upper Marsyangdi Location Uttaranchal Arunachal Pradesh Himachal Pradesh Nepal Nepal Capacity 300 MW 160 MW 180 MW 300 MW 250 MW Type of Project Run of River on BOOT basis for 45 years from Implementation Agreement Run of the River on BOOT basis for a concession period of 40 years from COD Run of the River on BOOT basis for a concession period of 40 years from COD Run of the River BOOT basis for concession period of 30 years from Generation License Run of the River BOOT basis for concession period of 30 years from Generation License Expected COD Land Acquisition Land requirement is approx. 200 Acres and land acquisition is in progress Approx. 850 acres land required Acquisition will start after DPR and MoEF clearance Land requirement is 120 acres Permanent Site establishment is in place Permanent Site establishment is in place Power Offtake Plan to have short term PPA with states in North India Plan to have short term PPA with states in North India Terms of Reference for Environment study approved by MOEF No R&R issues envisaged Plan to have short term PPA with states in North India Terms of Reference for Environment study approved by MOEF No R&R issues envisaged Plan to export Power to sell on short term PPA to states in North India Environmental clearance expected by Nov 2010 Plan to export Power to sell on short term PPA to states in North India Environmental Clearances Final clearance obtained form MoEF in Mar 2008 No R&R issues Project status DPR approved by CEA Appointed E&Y as consultant for CDM Tender for main civil works floated and bids received are under evaluation Financial Closure expected by March AF Colenco of Switzerland has been appointed as the principal engineer. DPR has been prepared Hydrological Studies have been submitted to CEA. SNC Lavalin acting as Principal Engineer and Consultant DPR is being prepared. Financial Closure expected by Mar 2011 DPR is being prepared SchEMS appointed as EIA consultants Initial review indicate that the project capacity can be increased to 900 MW with total annual energy of 4,052 MU DPR is being prepared. Coyne-ET-Belliar appointed as DPR Consultants SchEMS appointed as EIA consultants Initial review indicate that the project capacity can be increased to 560 MW with total annual energy of 2,476 MU 45

52 GMR Energy : Overview of Power Assets 7,023 7,023 MW MW of of power power projects projects spread spread across across the the country country Bajoli Holi 180 MW Hydro Alaknanda 300 MW 1 Hydro Project Project Pipeline Pipeline (Gross (Gross Capacity Capacity MW) MW) Upper Karnali 300 MW Hydro Coastal Power Plant Gujarat 1320 MW Fuel type - Coal Chattisgarh 1,200 MW Fuel Type : Coal Vemagiri Expansion 740 MW Fuel type Natural Gas Upper Marsyangdi 250 MW Hydro Orissa 1,050 MW Fuel type - Coal Vemagiri 388 MW Fuel type Gas Talong 160 MW Hydro Mangalore 235 MW Fuel type Naphtha Coastal Power Plant Andhra Pradesh 700 MW Fuel type - Coal Chennai 200 MW Fuel type Sulphur Operating assets 3 Projects (823 MW) Under implementation/ Development 10 Projects (6,200 MW) 46

53 Towards Securing fuel supply for Power Plants Indonesia coal mine Homeland Energy Group(HEG) Acquired 100% stake for ~ US$ 80 mn (Staggered payment linked to start of production) Entity has Coal Contract of Works (CCoW) license (given by federal Govt. and approved by the Parliament), has highest degree of certainty and gives mining rights of 30 years from date of issuance Mine has resources of 288 mn ton and mineable reserves of 104 mn tons Development period to be 2 years Annual steady state run on mine production expected to be 6 mn ton (Life 19 Years) Plan to export coal to India Coal mined is expected to hauled by Road to Barge loading facility on Musi River Crushed coal from this facility to be loaded on barges Barges are expected to transport coal for ~320 kms to trans shipment point where the coal will be loaded on Capesize ships GMR acquired 33.5% stake for US$ 30 Mn on February 23, 2009 HEG is having coal mines in South Africa with interest in Uranium exploration HEG investments include a 39% stake in Homeland Uranium with assets in Niger & USA and an 8% stake in Altona with coal assets in Australia HEG owns Mining License for Kendal (74%, total mineable reserve 25 mn tons), Eloff (50% with an option to increase to 74% for US$ 15 mn, total reserve mn ton) Northfeild (100% share 1 mn ton) Annual steady rate run on mine production from Kendal expected to be 1.8 mn ton Eloff expected to be 12 mn ton Northfield expected to be 0.3 mn ton Pre-feasibility report on Eloff Project prepared by Exxaro, SA and Validated by Norwest, USA JORC standard certified resource & reserve and feasibility reports completed and mining application has been made. Plan to sell coal in spot market at mine gate to global players like Glencore Based on Imported Coal, planned 2020 MW Coastal Projects including 1320 MW in Gujarat and 700 MW in Andhra Pradesh 47

54 Power Projects: Strategy to Transform itself into an Integrated Power Producer in India 1 Leverage expertise to capture future 2 growth opportunities Diversify into allied power infrastructure businesses Add further power assets diversified across fuel types in India. Bid for UMPPs where fuel supply has been secured. Invest in IPPs in neighboring developing countries with Need for infrastructure expansion Government support Explore brown field opportunities through acquisitions of development rights and operating assets. Actively explore opportunities in domestic power distribution. State of Gujarat, Karnataka & Maharashtra have initiated private participation. Evaluate power transmission opportunities in India. Explore Joint Ventures and/or acquisition to realise value. Explore options for alternate fuel to reduce reliance on any one type of fuel. In discussion with Companies from Spain and Turkey to venture into the Solar Energy Business in India. 48

55 GMR Power Assets: Annual Financial Performance INR mn Gross Revenues 21,527 15,530 12,981 10,225 Contracted 20,207 15,530 12,981 10,225 Merchant 1, Net Revenues 21,527 15,530 14,029 10,107 Operating Expenses 16,186 12,031 8,915 5,836 EBIDTA 5,341 3,499 5,114 4,271 Other Income Interest and Finance Charges 955 1,065 1, (Gains)/loss on FE Fluctuation Depreciation 1,172 1,175 2,578 1,979 PBT 3,328 1,770 1,119 1,297 PAT 3,045 1, ,172 Cash Profit 4,217 2,760 3,467 3,155 Cash Accruals 1,990-1,440 49

56 GMR Power Assets: Quarterly Financial Performance INR mn Q4 FY09 Q4 FY08 Gross Revenue INR mn Gross Revenues 6,528 6,281 Contracted 5,598 6,281 Merchant Net Revenues 6,528 6,281 Operating Expenses 5,450 5,230 EBIDTA 1,078 1,051 Other Income EBIDTA Interest & Finance Charges Depreciation PBT PAT Cash Profit

57 Future Outlook of Power Sector Capacity Additions Expected Mega Watts (In 000 s) Scope for Public Private Participation Huge Capacity additions have been planned in power generation in 11th Five Year Plan to the tune of 79 GW as against 135 GW currently installed. Total investment opportunity of about US$ 150 billion over a 5 year horizon De regulated power sector to contribute about 40% of additional capacity by 2012 Hydel power potential of 150,000 MW is untapped as assessed by the Government of India Installed Capacity Breakup FY09 (Total Capacity = 148 GW) Coal Gas Diesel Nuclear Hydro * Renewable Energy Solutions (Ministry of New & Renewable Energy) RES (MNRE) State Private Central Total Low Consumption per capita Per Capita Consumption in India is extremely low as compared to other countries Per Capita Consumption (Thousand Kwh/ year) Source: UNDP, Human Development Indicators,2006 ; CEA and Crisil Research Power Annual Review 51

58 Demand-Supply Gap to Catalyze Growth Historically Characterized by Huge Energy Shortages(1) Demand-Supply Gap Aggravated as Capacity Addition by Government has been far below Planned Targets and Limited Involvement of Private Sector Historically Capacity Addition has not kept pace with Demand, Leading to Significant Shortages (1) Ministry of Power 52

59 InterGen N.V: International Power Company of GMR Group OTPPB GMR Group (from AIG Highstar Highstar) 50% 50% Current Shareholding Structure 100 % Campeche InterGen N.V. ( HoldCo InterGen (International) B.V 100 % UK HoldCo 100 % 100 % Chihuahua La Rosita Spalding Coryton Rocksavage 29.3% 25% 51% 45.9% 100 % 100 % Millmerran Callide C Bajio Quezon Rijnmond I Rijnmond 2 Corporate Timeline InterGen formed as a joint venture between Bechtel Enterprises and Pacific Gas & Electric Bechtel purchased all of PG&E s interest in InterGen and later that year sold a 50% interest to Shell Shell and Bechtel sold InterGen and 10 of its power plants to AIG and OTPPB GMR acquired AIG Highstar s 50% stake in InterGen

60 Details of InterGen N.V International Power Assets InterGen Net Capacity (net of aux) Operating assets 7,658 MW Assets in construction 428 MW Total 1 8,086 MW InterGen Equity 6,231 MW GMR Equity 3,116 MW Netherlands Operating assets Rijnmond 820 MW (100%) C Assets in construction Rijnmond II 428 MW(100%) C United Kingdom Operating assets Rocksavage 748 MW (100%) C Coryton 777 MW (100%) Spalding 860 MW (100%) C Total 2,385 MW Mexico U.K Netherlands Philippines Total 1,248 MW Philippines Operating assets Quezon 460 MW (45.87%) C Total 460 MW Mexico Operating assets Bajio 600 MW (51%) La Rosita 1,100 MW (100%) Campeche facility 252 MW (100%) Chihuahua facility 259 MW (100%) C C C C Australia Australia Operating assets Millmerran 850 MW (29.3%) Callide 920 MW (25%) Total 2,223 MW Also includes Libramiento pipeline Total C Contracted InterGen has 7658 MW of Assets under Operation with another 428 MW under construction InterGen also has a current development pipeline of 2,849 MW 1,770 MW Diagram legend CCGT Coal 54

61 InterGen N.V: Strategic Rationale & Value Proposition Avenue for Growth Opportunities in India are slow to materialise Competition getting fiercer at home Significant growth opportunities in markets overseas GMR has the distinctive development skills needed in emerging markets Group Profile Aim to be well known brand, in global top 10 in key sectors Access to International Talent Attract talent s, who do not to want to move to India Provide international opportunities for Indian staff GMR s International aspiration is to achieve $10b assets under management in 5 years Portfolio Diversification Spread risk exposure across geographies GMR feels a clear need for pure breed entrepreneur - developer Learn from other more Skilled Markets Bring back new approaches and technology from global exposure Exposure to nuclear technology, getting coal from overseas etc. Access to International Capital Ability to raise capital internationally Desire to list on e.g., London Stock Exchange Going Global complements GMR through de-risking its Portfolio, Leveraging its Partnership and its ffinancial acumen 55

62 InterGen N.V: Fits well with GMR s Strategic Intent Portfolio of existing assets - high quality and location in attractive markets Strong development pipeline International IPP market surging due to requirements for new generation capacity Recognised management team (unique opportunity to get a team with international experience and solid track record in project development and asset operation) Unique opportunity to develop/ acquire skills (merchant, tolling, contracted plants) Leverage/ capitalise on GMR Group s & InterGen teams combined capabilities to expand through building new generation capacities and replacing other ageing plants acquisition elevates GMR to be a Global Power Generator and elevates GMR as the largest private sector power developer in the country 56

63 InterGen N.V: Management Team Equal representation to both OTPPB and GMR Management is exercised through two bodies: Supervisory Board 10 members 1 Equal representation by OTPPB and GMR Veto rights to both parties on key decisions Management Board 4 members 2 OTPPB and GMR have right to nominate 2 members each Day-to-day operations are run by the Management Board All key decisions, including key appointments, investment decisions, borrowings etc, decided by the Supervisory Board InterGen has a strong and well qualified management team in place Hands-on management team, very well perceived in the market Strong development pedigree grown up in industry from developers (J Makowski, Calpine) 600 employees Neil H Smith (President & Chief Executive Officer) Lead responsibility for development, financing, construction, operations of all InterGen projects Bachelor of Science in Political Science from Emory University; MBA from Harvard Business School Tim Menzie (Chief Operating Officer) Responsibilities include directing all the operations and commercial management activities Bachelor s degree in Business Administration from Westfield State College and Masters of Science in Taxation degree from Bentley College. Martin Rees (Chief Financial Officer) Directs InterGen s project finance, corporate finance, financial reporting, tax, treasury and information technology functions BA in accounting from University of Kent; member of Association of Corporate Treasurers Susan E Gonzalez (General Counsel) Responsibilities include general legal services, compliance, risk management, M&A support BA from University of Michigan; Juris Doctor degree from Suffolk University; Certificate in Comparative Law from University Jean Moulin in Lyon, France Professionally managed Company with strong internal controls and processes 57

64 InterGen N.V: Key Financials (CY2008) (USD Mn) CY 08 CY 07 Generation 31,8 GWh 30,9 GWh Revenue (2) EBIDTA (3) Tier I EBIDTA (3) Tier II Corporate & Development (39) (35) Consol EBIDTA (3) (1) Revenue stated is before MTM Deduction (2) Revenue Consists of only Tier I plants (3) Proportionate & Adjusted EBITDA 58

65 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

66 Road Projects Particulars GTAEPL GTTEPL GACEPL GJEPL GPEPL GUEPL* GHVEPL Location Tuni-Anakapalli Tambaram- Tindivanam Ambala-Chandigarh Faruknagar- Jadcherla Pochanpalli Tindivanam- Ulundurpet Hyderabad Vijayawada Road Length 59 kms 93 kms 35 kms Construct - 46 kms + O&M Sweetener - 12 kms Construct - 86 kms + O&M Sweetener -17 kms Construct - 73 kms Construct 181 kms Concession Period 17.5 years incl. construction period of 2.5 yrs years incl. construction period of 2.5 yrs. 20 years incl. construction period of 2.5 years 20 years incl. construction period of 2.5 years 20 years incl. construction Period of 2.5 years 20 years incl. Construction Period of 2.5 years 25 years from Date of appointment Concession Duration May Nov May Nov May May Aug Aug Sep Sep Oct Oct Project Cost(Rs.Mn) Financial Closure Commercial Operation Date Concession Type June 2002 June 2002 May 2006 August 2006 September 2006 October Oct 2004 Oct 2004 Nov 2008 Feb 2009 March 2009 Apr All road projects commissioned on schedule 22,000 (Approx.) Annuity Annuity Toll Toll Annuity Toll Toll Completed Under Construction * Construction completed, will commence commercial operational shortly 59

67 Leveraging expertise to explore Opportunities across Land Transportation Sector Short listed for submission of Price Bid ( 658 Kms) Project Kms Est.Cost RsM Jaipur Tonk Deoli 149 7,290 Chennai ORR 30 8,640 Samikhali Gandhidham 56 8,050 Udaipur - Ahmedabad ,450 Total ,430 RFQ Applications have been submitted for the following projects: Project Kms Est.Cost RsM Gandhidham Mundra Port ,310 Ahmedabad Godhra ,250 Godhra Guj / MP Border ,470 Haridwar Dehradun ,900 Hungund Hospet ,470 Kishangarh Udaipur ,340 Krishnagiri Walahjpet ,500 Rohtak Bawal ,690 Hyderabad Bangalore ,500 Bijapur Hungund ,580 Chengapalli Kerala/TN Border ,520 Pune Satara ,250 Tumkur Chitradurga ,500 Total 1, ,35,280 60

68 Road Assets: Glimpses Ambala Chandigarh Road (Completed) Jadcherla Road Pochanpalli Road Ulundurpet Road 61

69 Roads Sector: Significant Opportunity for Private Sector Participation India India has has one one of of the the largest largest Road Road Networks Networks in in the the World World 2% 4% 80% 14% Total length = 3.3 million km Current Current status status of of Road Road network network in in India India National Highways State Highways Major district roads Rural & other roads National highways constitute only 2% of road network but carry ~40% of the total road traffic Vehicle traffic has been growing at a pace of 10% per annum over the last 5 years The roads and highways in India account for about 80 per cent of the total passenger traffic and about 60 per cent of the total freight traffic in the country The government has embarked on the ambitious National Highway Development Project covering 13,000 km with a cost of Rs.54, 000 crore. Supportive Supportive Regulatory Regulatory Framework Framework Government will carry out all preparatory work including land acquisition and utility removal. Right of way (ROW) to be made available to concessionaires free from all encumbrances. NHAI / GOI to provide capital grant up to 40% of project cost to enhance viability on a case to case basis 100% tax exemption for 5 years and 30% relief for next 5 years, which may be availed of in 20 years. Concession period allowed up to 30 years Arbitration and Conciliation Act 1996 based on UNICITRAL provisions. In BOT projects entrepreneur are allowed to collect and retain tolls Duty free import of specified modern high capacity equipment for highway construction. FDI up to 100% in road sector Source: Report of the Core Group on the Financing of the National Highway Development Program 62

70 Roads Sector: Significant Opportunity for Private Sector Participation Phase Phase wise wise Scope Scope of of NHDP NHDP NHDP NHDP has has planned planned expenditure expenditure of of ~USD ~USD 55bn 55bn NHDP Phase I NHDP Phase II NHDP Phase-III NHDP Phase-IV NHDP Phase V NHDP Phase VI NHDP Phase VII Phase Phase wise wise Status Status GQ (5,846 km) and NS-EW Corridor (981km) NS-EW Corridor (6,161 km) and other National Highways of 486 km length. Upgradation and 4 laning of 4,035 km of National Highways. upgradation and 4 laning of 8074 km Upgradation of 2000 Km of Highways into 2 lane highways Six laning of 6,500 km of existing 4 lane highways includes 5,700 km of GQ and other stretches km of expressways 700 km of Ring Roads, Bypasses and flyovers and selected stretches 13,146km 10,000km 20,000km 6,500km 1,000km N/A Opportunity Opportunity for for Private Private Sector Sector Participation Participation worth worth $23bn $23bn (08-12E) (08-12E) 42% 58% Total=USD 55bn Private sector contribution Contribution from other sources 63

71 GMR Road Assets: Annual Financial Performance INR mn FY09 FY08 FY07 FY06 Gross Revenues 1,523 1,397 1,678 1,615 Annuity 1,414 1,397 1,678 1,615 Toll Operating Expenditure EBIDTA 1,257 1,180 1,362 1,277 Other Income Interest and Finance Charges Depreciation PBT PAT Cash Profit Cash Accruals

72 GMR Road Assets: Quarterly Financial Performance INR mn INR mn Q4 FY09 Q4 FY08 Gross Revenue Gross Revenues Annuity Toll 99 - Operating Expenditure EBIDTA Other Income 10 1 EBIDTA Interest & Finance Charges Depreciation PBT PAT Cash Profit

73 Krishnagiri Special Economic Zone: Recent Foray Project Overview Land Acquisition by end of the current FY Entire land of 3300 acres has been Identified 1500 acres of Land acquired Balance 1800 acres of Land acquisition is in progress Free from homestead, minimal Relocation & Rehabilitation. Planned Action for next 12 months Final Notification of SEZ Completion of Development Plan for covering: (a) Master Plan and Infrastructure Plan (b) Business Plan (c) Demand Assessment Preparation of Detailed Project Report Setup a Construction Division Team of 124 personnel to mitigate execution risks 66

74 Krishnagiri Special Economic Zone: Locational Advantages Location advantages Industrial Legacy because of proximity to Hosur Town which is an automobile hub Developed Infrastructure by way of Power supply, connectivity etc. Forward & Backward Linkages due to proximity to Bangalore. Availability of skilled human resources due to traditional engineering & textile workers pool. A Strategic Location with distinct Comparative Advantages Bangalore Targeted Industries New Technology Industries Wind Power, Solar Thermal Systems, Photo Voltaic Systems, Aircraft Part Manufacturing. Knowledge Industries IT & ITES, Contract Manufacturing, Nanotechnology, Bioinformatics, Clinical Trials, Health Tourism, Manufacturing & Drug discovery. Krishnagiri Traditional Industries Auto & Auto Components, Processed Foods, Light Engineering, Floriculture, Plastics, Garments, Electronics, Logistics. 67

75 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

76 GMR Infrastructure: Board of Directors GMR Holding Board GMR Infra Board G. M. Rao GM Rao Srinivas Bommidala Group Chaiman G. B.S. Raju G. Kiran Kumar B.V. Nageswara Rao Srinivas Bommidala Chairman - Urban Infrastructure & Highways G Kiran Kumar Chairman - Airports K. Balasubramanian Member Group Holding Board K.Balasubramanian O B Raju Arun K. Thiagarajan K.R. Ramamoorthy Prakash G. Apte R.S.S.L.N. Bhaskarudu GBS Raju B V N Rao P M Kumar Udaya Holla Chairman Corporate & International Business Chairman Energy & Agro Executive Director, GMR Holdings Board Uday M. Chitale 68

77 GMR Infrastructure: Management Team Airports Sector DIAL DIAL P.S. Nair, CEO Andrew Harrison, COO (T 3 Terminal) Peter Noyce COO (T1 & T2 Terminal) I Prabhakara Rao, CEO-&EVP Airport Development Gavin Makechnie, Chief Commercial officer M.S.Narayanan, Head- Finance A.S.K. Reddy Head, HR GHIAL GHIAL P. Sripathy, CEO Rajinder Jalpuri, Deputy, COO A. Vishwanath, Chief Commercial Officer G.R.K Babu, Head-Finance Mohan Prasad HR, Head GADL GADL Mr. G Kiran Kumar Chairman Govindan Sridharan, CEO Urban Urban Infrastructure Infrastructure & Highways Highways Sector Sector Mr. Srinivas Bommidala- Chairman O.B.Raju, MD & CEO-Highways V Jayaraman, COO Property Development Gopala Krishna Kishore, COO-SEZ D.R Santhana Krishna, CFO - Highways Kamalakararao Y, CFO-SEZ & Property Energy Energy Sector Sector Mr. B V N Rao- Chairman Raajkumar, CEO K V V Rao, Director & President G.Subba Rao, President Hydro Energy Ashish Basu, EVP Commercial & Contracts R. K Goel, Project Director-Transmission S N Barde, EVP O & M Avinash R Shah, EVP-Business Development Corporate Corporate Functions Functions Mr. GBS Raju- Chairman International International Business Business Development Development Ranjit Murugason, CEO Madhu Terdal, COO Cenk Alpsoy CEO, Turkey Quek Peng Ng, Head South East Asia Dean Marks Head, HR Corporate Corporate Services Services Finance & Systems Subba Rao, Group CFO Ashutosh Agarwala, CFO-SFD Johny Paramian, Group CIO Legal & Secretarial Y M Shivamurthy, Group President Legal Mr. C.P.Sounderarajan, Company Secretary Other Shared Services G.K.Raghunandanan, CEO-Procurement Mr Sheshan Ranganathan, Head-Strategic Planning Dr.Vijay Vancheswar, Head Communications Deepak Bharara Group FMS Head & Head HR GGCL 69

78 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

79 GIL Shareholding Pattern Category No. of Shares % Holding Floating Shareholding (25.07% equity of the company) As on May 29, 2009 Promoters 1,364,296, Foreign Institutional Investors 162,198, % 6.17% 35.54% Venture Capital/ Domestic FIs/ Banks/ MFs 167,349, % Bodies Corporate 28,170, FIIs Retail including Indian Public, HUF and others 98,643, VC/FIs/Banks/MFs Bodies Corporate Total 1,820,658, Retail incl. resident individuals, Trusts,HUF & others 58

80 GIL Stock Performance Listing of shares on August 21, 2006 on Bombay Stock Exchange/National Stock Exchange High / Low Price Per Share (Post Split) Since Listing on 21st August 2006 : High (Dec. 06, 2007) / Low (Aug. 21, 2006) In Q4 during Jan to Mar 2009 : High (Mar 26, 2009) / Low (Jan 09, 2009) In May 2009 : High (May 22, 2009) / Low (May 14, 2009) Market Cap (on May 29, 2009) Rs. 299, Mn GIL Stock Price and Indices Comparison Outperformed Indices Base 100 data for GIL & indices Aug Mar-07 5-Oct Apr Nov May-09 GIL Sensex S&P CNX Nifty CNX Midcap CNX Nifty Junior 59

81 Key Investment Highlights 1 2 GMR : Leading Infrastructure Player 3 Airports : Building Gateways To India 4 Power : Lighting the World 5 Urban Infrastructure & Highways : Paths To Progress 6 Strong Management Team 7 8 India : Secular Growth In Infrastructure Stock Prices & Shareholding Pattern Financial Highlights

82 GMR Infrastructure : Consolidated Profit & Loss account INR mn FY 2009 FY 2008 FY 2007 FY 2006 Gross Revenues 44,762 26,979 19,967 10,617 Airports 16,729 8,770 5,900 - Power 21,527 15,530 12,127 9,000 Roads 1,523 1,397 1,440 1,504 Other 4,981 1, Less: AAI Share 4,570 4,031 3,000 - Net Revenues 40,192 22,948 16,967 10,650 Operating Expenditure 29,522 16,963 11,531 6,086 EBIDTA 10,670 5,985 5,436 4,564 Other Income Interest and Finance Charges 3,682 1,687 1,441 1,303 Depreciation 3,898 1,785 1,346 2,200 PBT 3,301 3,210 2,832 1,094 PAT (Before Minority Interest) 2,771 2,627 2, PAT (After Minority Interest) 2,794 2,101 1, Cash Profit 6,669 4,412 4,436 5,106 Cash Accruals 3,

83 GMR Infrastructure : Consolidated Balance Sheet Sources of Funds FY 2009 FY 2008 FY 2007 FY 2006 Shareholder s Funds 64,780 61,170 19,923 5,704 Minority Interest 18,060 11,130 5,261 4,243 Loan Funds 120,240 79,770 37,057 29,703 (a) Secured Loans 106,604 68,438 30,220 25,925 (b) Unsecured Loans 13,636 11,332 6,837 3,778 Deferred Tax Liabilities Total Liabilities 203, ,500 62,385 39,652 Application of Funds Gross Fixed Assets 114,330 66,920 41,481 24,559 Net Fixed Assets 96,520 52,700 28,999 13,508 Capital Work in Progress 67,910 45,230 19,060 16,318 Investments 14,110 49,000 2,625 2,557 Net Current Assets 24,730 5,570 11,701 7,269 Total Assets 203, ,500 62,385 39,652 73

84 GMR Infrastructure : Quarterly Financial Performance Particulars Q4 FY 09 Q4 FY 08 Gross Revenue (Quarterly) INR Million Gross Revenue 14,434 10,017 Airports 4,020 2,560 Power 6,528 6, Roads Others 3, Less: AAI Revenue Share 1,156 1,164 Net Revenue 13,278 8,853 Operating Expenditure 10,416 7,336 EBITDA 2,862 1,517 EBIDTA (Quarterly) Other Income (7) 199 Interest & Finance Charges 1, Depreciation 1, PBT PAT (Before Minority Interest) PAT (After Minority Interest) Cash Profit 1,

85 GMR Infrastructure: Strong Revenue Growth 1 Gross Gross revenues revenues (Rs (Rs Mn) Mn) 2 Gross Gross assets assets (Rs.Mn) (Rs.Mn) 3 EBITDA EBITDA (Rs.Mn) (Rs.Mn) 4 PAT PAT after after MI MI (Rs.Mn) (Rs.Mn)