Disclaimer The presentation has been prepared for information purpose, it is not a solicitation of any offer to buy or sell any security or instruments. This presentation contains forward-looking statements. Forward-looking statements in this presentation are subject to number of risks and uncertainties, some of which are beyond our control. Our actual results, performance, prospectus or opportunities could differ materially from those expressed in or implied by the forward looking statements. These forward looking statements are made as of the date of this presentation. We undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law. BF Utilities refers to and its subsidiaries and affiliates. 2
BF Utilities : Overview 3
Overview of the Kalyani Group Kalyani Group is one of the leading industrial houses in India, focusing on the following sectors: Engineering Steel Automotive & Non-Automotive Components Renewable Energy & Infrastructure and Specialty Chemicals Bharat Forge Limited, the flagship company of the group, is one of the leading commercial forging companies globally, specializing in highly value-added and critical products (market capitalization: $1.3 billion(1); Revenues: $1.1 billion) A global forging conglomerate with a capacity of over 750,000 TPA spread across 12 locations and 6 countries Listed on the Bombay Stock Exchange and National Stock Exchange in India Foray into capital goods for the power sector to capture the India infrastructure growth opportunity; has set up joint ventures with Alstom, Areva and National Thermal Power Corporation Mr. B N Kalyani (Promoter and Chairman), with over 27 years of experience, is the principal driving force behind the growth and success of the Kalyani Group of Companies Notes: 1. As of march 15,2010 4
BF Utilities: Snapshot of Key Projects Bangalore Mysore Infrastructure Corridor (BMIC) Project Hubli - Dharwad Road Project Sole manager to execute the BMIC project One of the largest integrated infrastructure development project in India 164 km tolled expressway connecting Bangalore and Mysore including 3 Kms of Elevated road at Bangalore Side Development of infrastructure and amenities including townships, with state-of-the-art connectivity Nandi Economic Corridor Enterprise ( NECE ) is an SPV promoted by NICE to execute a part of Section - A of the BMIC project 62 km long toll road in Bangalore side Interchanges and its Developments Part of Township 1 (1732 Acres out of 2775 Acres) 30km bypass road connecting the twin cities of Hubli and Dharwad in North Karnataka Operational since last 9 years with current toll collection of around Rs.220 million per annum Notified as part of the NH4 (Pune-Bangalore), also part of the Golden Quadrilateral Road Project of India Wind power plants set up at Thoseghar in Satara District Maharashtra with a total capacity of 18.33MW Set-up to satiate the power requirements of the Kalyani Group companies 5
Corporate Structure BF Utilities* (Market Cap - $768MM)** 100% 74.5% 69.53% Wind Mill (18.33MW) NICE NHDL (Hubli-Dharwad Bypass) 64.8% 100% 100% NECE (Part of Section A) Part of Section A, Section B & C Various Utilities Power Water Road & Interchange Development (62 km Toll Road) Part of Township 1 Development Expressway & Interchange Development (99 km Toll Road) Five Townships Development (Incl. Part of Township 1) Telecom Bundled Utilities (e.g. Bus / Truck Terminals, Hospitals, etc.) Notes: * Post de-merger of BF Investment Limited pursuant to a Scheme of Arrangement recently approved by the High Court ** As of March 15, 2010 6
7 BMIC Overview
World Class Infrastructure Project Nandi Infrastructure Corridor Enterprise Ltd. (NICE) is implementing the Bangalore Mysore Infrastructure Corridor (BMIC) Project, a world class integrated infrastructure development project, which consists of : A 164 km tolled expressway connecting Bangalore and Mysore with following road components : o a 9.1 km Link road connecting Centre of Bangalore with the Peripheral Road o a 41 km Peripheral Road around the City of Bangalore linking Hosur Road - NH-7 to Tumkur Road NH-4 o a 111 km Expressway between Bangalore & Mysore o a 3 km Elevated Road at Bangalore Side 5 New Township Developments along the Expressway between Bangalore and Mysore Concomitant development at the interchanges along the Peripheral Road and Link Road Rights to supply power, water, telecommunication services, sewage and waste water management etc. Single planning authority Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) for the entire project Concession period for toll road is 40 years including 10 years of construction period Section - C Section - B Section - A Expressway: 36Km to 111 Kms Interchange Developments Township: Eco Tourism Center Elevated Section of the Link Road at Bangalore Side Expressway: 12Km to 36 Kms Interchange Developments Townships: Commercial Center, Heritage Center and Industrial Center Link Road: 9.1 kms Peripheral Road: 41 kms Expressway: 0Km to 12 Kms Interchange Developments Township: Corporate Center 8
Close Proximity to Bangalore With Bangalore s population approaching 8.5 million, it is believed that implementation of the BMIC Project holds the key to addressing the infrastructure problems of the city. Growth Patterns in Bangalore Devanahalli BMIC Project Location Overview Towards Devanahalli Hebbal Brookfields Mahadevapura CBD Whitefields Mysore Road Kanakapura Road Bannerghatta Road Proposed Hi tech City Hosur Road Sarjapura Road Existing Development Corridors Future Development Corridors 9
Section A Infrastructure Development Nearly Complete Project Overview Project Status The project entails development of 62 km of Toll Road and one Township near Bidadi 9.1km Link Road linking city centre to Outer Peripheral Road 41km Outer Peripheral Road linking Hosur Road to Tumkur Road 12km Expressway up to Bidadi Township 1 (Corporate Center) near Bidadi with 2775 Acres Total Land for Section A is 7,290 acres (Out of this NECE Land is 6,173 Acres and NICE Land is 1,117 Acres) Integral part of Bangalore urbanization infrastructure Almost 88% of toll road work is completed Total 4,188 acres out of 7,290 acres of total land has been acquired by GoK and transferred to the NICE / NECE Balance expected shortly pending few documentation requirements 10
Significant Value in Section B and C Project Overview The project entails development of 99 km of Toll road, four selfsustained townships and 3 kms of Elevated road at Bangalore Side Expressway from Bidadi to Mysore Development of up to 400MW of power plants with exclusive right to transmit and distribute power to the BMIC Development and maintenance of water / waste water and sewage treatment facilities for BMIC Exclusive right to use 155 million litres of water per day from the Cauvery river for BMIC and the right to draw 85 million litres of water per day from Bangalore Water Supply & Sewerage Board Right to contract for telecommunication and broadcasting services within the BMIC area Project Status Work on Section B and C expected to start in Oct / Dec 2010 11
Superior Toll Road Specifications and Planning Superior specifications / planning with room for revenue upside Major expenses on the toll road already incurred Stable income from toll linked with traffic growth Current toll rates are at ~35% discount to government sanctioned rates Concession agreement permits further 10% rate escalation every year; implying significant revenue upside Significant ancillary revenue streams OOH advertising, bus and truck terminals, etc. Potential revenue upside once connectivity to airport is established and Expressway from Bidadi to Mysore is completed. 40 35 30 25 20 15 10 5 0 Current Toll Collection (Rs. Million) 22.6 r-09 Apr 25.5 25.3 May y-09 Jun n-09 26.9 27.8 28.5 l-09 Jul Aug g-09 Sep p-09 31.0 32.0 t-09 Nov v-09 36.5 Dec c-09 Connectivity at IC 2/7 (Bannerghatta) Restoration of Original Toll Rates 26.3 Jan n-10 34.8 Triggers For Enhancing Toll Collection Commencement of Operations on Expressway Oct Feb b-10 12
Townships: Significant Value Creation Potential Large contiguous and well connected land bank available in a Tier 1 city in India Township to serve demographic needs of the area, provide decongested living experience Infrastructure first, development later model Unlike SEZs where the land is leased and not owned, land in this case is free hold with clear and absolute title, free of all encumbrances Planned multifaceted development Quality and reliability of infrastructure Vastly improved connectivity Expansion of Bangalore on the peripheries Zoning in place with Single Area Planning Authority (BMICAPA) Plans to develop 200-300 million sq ft of land in the next 5 7 years Eligible for a 10 year tax holiday under section 80I(A) (subject to MAT) 13
14 Other Key Assets
Hubli-Dharwad Bypass Road Project Overview 30km bypass road connecting the twin cities of Hubli and Dharwad in North Karnataka to avoid city traffic and congestion Located right in the middle of the Pune- Bangalore stretch (835km) of the NH4 Dharwad Goa Crossing End Toll Plaza 2 1 Dharwad End Toll Plaza Key Features Already completed and operational since last 9 years with current toll collection of around Rs.220 million per annum Traffic growth at 11.5% CAGR, toll collection growth at 14.2% CAGR for past 5 years Notified as part of the NH4 (Pune-Bangalore) which is part of Golden Quadrilateral Road Project of India Toll rate escalation at 10% p.a. as compared to current projects at inflation rate Tarihal Crossing Toll Plaza Traffic growth at 11.5% CAGR, toll collection Kalghatgi Crossing 4 Toll Plaza 3 Ayodhyanagar Crossing Toll Plaza 5 6 Hubli End Toll Plaza Concession Agreement 26 years of concession period including 1 year construction for Phase I and 2.5 years for Phase II Date of Signing of BOT Concession Agreement: 05-Feb-1998 Date of Commencement: 06-May-1998 End of Concession Period: 05-May-2024 15
Wind Energy Farm 18.33 MW wind farm spread over an expanse of 300 acres at Thosegar in Satara district, Maharashtra Power generated utilized by Bharat Forge Ltd. at its Pune plant Consists of 51 wind energy generators (WEGs) of 230KW and 11 WEGs of 600KW Out of the total capacity, 14.65MW of eligible capacity has availed carbon credits benefits Wind farm has been generating power at a plant load factor of ~25% which is one of the highest in the state Has received several industry awards and accreditations 16
17 Appendix
BF Utilities: Overview of Toll Road Assets Toll Road Assets Section Kms Current Status Company Link Road 9.1 Completed NECE Peripheral Road 41.0 Nearly completed NECE Expressway till Bidadi 12.0 Under construction NECE Expressway from Bidadi to Mysore (incl. elevated road) 102.1 To start in Oct / Dec 2010 NICE Hubli Dharwad Bypass Road 30.0 Operational NHDL Total 194.2 18
NECE Overview 19
NECE Location Map 20
NECE Toll Road Specifications and Planning Total length of the road 62km; total project cost Rs 20.4 billion. Cost/Km is high compared to a typical highway project due to International quality standards followed for the road construction; and The Resettlement & Rehabilitation (R&R) package costs to build quality infrastructure Old House New House Ruined Old Temple New Temple 21
NECE Toll Rates Summary Government Sanctioned Rates (As per Toll Agreement, for the Year 2010) Section km Car Bus Truck LCV MAV 2W Hosur Road-Bannerghata Road 7.9 25 67 44 26 47 10 Bannerghata Road-Kanakapura Road 6.8 21 58 37 22 40 9 Kanakapura Road - Mysore Road 8.2 26 70 45 27 49 10 Mysore Road-Magadi Road 9.5 30 81 52 31 57 12 Magadi Road-Tumkur Road 7.5 23 63 41 25 45 9 Mysore Road -Tumkur Road 17.0 53 144 93 56 102 21 NECE Current Charges Section km Car Bus Truck LCV MAV 2W Hosur Road-Bannerghata Road 7.9 15 44 29 17 31 6 Bannerghata Road-Kanakapura Road 6.8 13 38 25 15 27 5 Kanakapura Road - Mysore Road 8.2 16 46 31 18 33 6 Mysore Road-Magadi Road 9.5 19 53 35 21 38 7 Magadi Road-Tumkur Road 7.5 15 42 28 16 30 6 Mysore Road -Tumkur Road 17.0 33 95 63 37 67 13 22
Actual Photos of BMIC Project 23
24 Thank You