Lanco Infratech Ltd Investor Presenta on - NATURAL RESOURCES EPC
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Lanco Infratech Ltd
EPC POWER SOLAR NATURAL INFRASTRUCTURE
RESOURCES
Investor Presenta>on
©LANCO
© LANCOGroup,
Group,AllAll Rights
Rights Reserved
Reserved
Agenda
1 Company Overview
2 Financials
3 Industry Overview
4 Power Business
5 EPC Business
6 Solar Business
7 Natural Resource Business
8 Infrastructure Business
9 Property Development Business
10 Experienced Management Team
© LANCO Group, All Rights Reserved
1. Mission, Vision and Values
Mission: Development of Society through
Leadership, Entrepreneurship, Ownership
Vision: Most Admired Integrated Infrastructure Enterprise
Values:
Integrity
Continuous Humility & Respect
Learning
Organization
Teamwork before Self
Achievement Drive
Accountability
Positive Attitude
© LANCO Group, All Rights Reserved
1. India’s largest Integrated Power Developer
• Listed Holdco of the group
• Promoters Holding ~ 68%
• Adj. Net Worth US $443 mn (including Minority)
EPC Lanco Infratech Limited (LITL) Construc>on
Subsidiaries / Affiliates
Solar Property Development Lanco Power Infrastructure Natural Resources
EPC Lanco Hills Thermal Hydro Roads Coal
GeneraSon All Coal All • Devihalli • Griffin
and Gas Hydro • Hosekote • Tasra
based based
Manufacturing
SPVs SPVs
• All businesses of the group are under LITL
• Power projects of 8,086 MW in 12 states of India (3,450MW* under opera>on & 4,636 under construc>on)
* 732 MW ge^ng ready for opera>ons
Assumed US$ / INR = 60
© LANCO Group, All Rights Reserved
2. Financials – P&L US$ Mn
Revenue EBITDA
3,000 500
2,567 2,549 442
450
2,500
400
2,000 1,813 350 308
300 279
254
1,500 1,228 250
1,000 200
150
500 100
50
‐
FY12 FY13 FY14 9MFY15 ‐
200 * Revenue : Before intersegment revenue elimination FY12 FY13 FY14 9MFY15
114
100
Adj. Profit 250 230 Cash profit
200
‐ 150
FY12 FY13 FY14 9MFY15
100
‐100
39
50
‐200
‐178 ‐
‐241 ‐50 ‐28
‐300
‐100
‐400
‐381
‐150 ‐124
‐500
Adj. PAT= Reported PAT + Profit Eliminated FY12 FY13 FY14 9MFY15
Note: Cash Profit: PAT + Depreciation + Profit Eliminated
1. Assumed US$ / INR =60
2. Mn indicate million
© LANCO Group, All Rights Reserved
2. Financials – Balance Sheet US$ Mn
Fixed Assets Cash & Cash Equivalents
7,000 6,890 250 235
6,782
6,800
200
6,600
6,439
6,400 150
6,200
97 101
100 90
6,000 5,901
5,800
50
5,600
5,400 ‐
FY12 FY13 FY14 9MFY15 FY12 FY13 FY14 9MFY15
* Fixed Assets : Gross Block + CWIP
Key Balance Sheet Figures (as on Dec 31, 2014)
Net Worth (including Minority Interest) 192
Add: Profit Eliminated (as per AS 21) 251
Adjusted Net Worth 443
Gross Debt (of company, subsidiaries & associates) 6,329
Gross debt of projects under opera>on 2,955
Gross debt of projects under construc>on 3,374
Cash and Cash Equivalent (including subsidiaries and associates) 90
Net Debt 6,239
Net Debt / Gross Adjusted Net Worth 14.10
Above debt figures excludes acquisition debt of Griffin and working capital loans of Power companies
Note:
1. Assumed US$ / INR = 60
2. * As per AS‐21 / AS‐28
© LANCO Group, All Rights Reserved
3. Industry Overview
a) Strong Push to Drive Infrastructure Growth
Expenditure on Infrastructure is required to keep growth momentum of Indian economy
350
288
300
300 Central State Private
300 Installed Power Capacity Growth (GW)
250 XII Plan spending (FY13-FY18)
194 Total - US$1,126bn 250 XII Five Year Plan expected target ~88 GW
200 189 (as per draft document).
200
150
200 159 174
143 148
104 101
100
132
150 105 108 113 118 124
64
51 40
50 25 30
18 12
-
100
Source: Planning commission (XIIth five year Draft plan) (INR/USD:50)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2017e
In BRIC countries, India’s per capita consumption lowest.
China’s per capita consumption of power is 4.8x of India.
3500
2944
3000
2500 In order to achieve 8% growth, India
2000
1500
should attain atleast 7% growth in total
1000 616 power sector.
500
0
India China
Source: World Bank Data 2010, (http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC)
Per capita consumption of electricity
© LANCO Group, All Rights Reserved
3. Industry Overview
b)Power Scenario in India
Per capita consumption of electricity ~ growing at
Growing share of Private players brisk pace
Capacity Addition targets in the 12th Plan (MW)
2012 879
Type/Sector Central State Private Total 2011 819
Thermal 14878 13922 43540 72340 2010 779
2009 735
Hydro 6004 1608 3285 10897
2008 717
Nuclear 5300 0 0 5300 2007 672
Total 26182 15530 46825 88537 2006 632
Source: CEA 2005 613
The 12th plan targets a capacity addition of 88,537 MW with 2004 591
53% of the capacity being added by the private sector
Per Capita Consumption Growth (Units)
Source: CEA
Recent Policy Ini-a-ves:
Electricity Generation during April 2013 to March 2014 (BUs)
1. State Electricity Boards (SEBS) Financial Type FY13 FY14 % Change
Restructuring Package Thermal 761 792 4
2. Ini>a>ve by Government of India to allow pass‐ Hydro 114 135 18
through of addi>onal cost of imported coal Nuclear 33 34 4
supplied under FSA
Bhutan Import 5 6 17
3. Modifica>on to Case II standard bidding All India 912 966 6
documents Source: CEA
© LANCO Group, All Rights Reserved4. Lanco Power Business ‐ Project Status Update
Power Projects under OperaSon
Plant Fuel Capacity (MW) Oeake Fuel Diversification
Anpara Coal 1,200 PPA 2%
Kondapalli I Gas 368 PPA
Kondapalli II Gas 366 Short Term 46%
Kondapalli III* Gas 732 Short Term
Amarkantak I Coal 300 PPA 52%
Amarkantak II Coal 300 PPA
Tanjore Gas 120 PPA
Other Renewable Wind, Solar, Hydro 64 PPA
Total 3,450
Gas Coal Renewables including Hydro
* kondapalli III (732 MW) is getting ready for operations.
Power Projects under ConstrucSon
Capacity EsSmated
Plant Fuel Financial closure oeake
(MW) compleSon
Lanco Ularanchal Hydro Y 76 Short Term FY 17
Teesta Hydro Y 500 PPA FY 17
Amarkantak III & IV Coal Y 1,320 Part PPA FY 17
Vidarbha Coal Y 1,320 Part PPA FY 17
Babandh Coal (Partly Cap>ve) Y 1,320 Part PPA FY 17
Solar Solar Y 100 PPA FY 17
Total 4,636
© LANCO Group, All Rights Reserved4. Power Business
Presence Across Value Chain De‐risking the Business
Integrated presence across value chain capturing value addition across the businesses
Transmission and
Fuel (Coal mining) EPC Generation and O&M Trading
Distribution
• Griffin coal, Collie • Completed projects with • Operating capacity of • One of largest private • Strategy includes
r e g i o n i n We s t e r n capacity of 4,732 MW 3,450MW* sector player in Indian possible expansion
Australia, currently power trading market into transmission and
• 4,636 MW projects under Type MW
produces 4 MTPA with distribution
construction • Traded 333 mn units in
resources of 1.2 bn Thermal & Gas 3,386 quarter ended Dec 31,
• Strong engineering
• Selected as MDO by 2014
capability Renewable 64
SAIL for Tasra Open (Hydro, Solar,
Cast mine with • Over 10 years of Wind)
geological reserves of experience in design and
approximately 250 mn development of Power TOTAL 3.450
tons in Jharkhand. Projects
• Kondapalli III (732 MW) is getting
Includes development ready for operations.
• Handles global suppliers
of a captive power
selection and sourcing of
plant as well.
diverse materials like • 4,636 MW projects under
high-pressure fabricated construction.
equipment, skids,
instrumentation &
electrical systems
* 732 MW ge^ng ready for opera>ons
© LANCO Group, All Rights Reserved5. EPC Business: In‐house exper>se enhances margins
EPC
EPC Order Book (USD Mn)
5,200 5,117
EPC order book of USD 4.91 billion as on Dec’14 4,910
4,800
Major EPC / Construction order executed
Kondapalli 1,214 MW
Udupi 1,200 MW 4,383 4,363
4,400
Anpara 1,200 MW
Amarkantak (I & II) 600 MW
Tanjore Power 120 MW 4,000
Budhil 70 MW
External orders under execution
EPC of Moser Baer Thermal Power Plant (600 MW x 2) 3,600
BoP of Koradi Thermal Power (3 x 660 MW) FY12 FY13 FY14 9MFY15
EPC of 250 MW Gas based Power plant in Iraq
Revenue (USD Mn)
EPC of Supercritical Ennore Thermal Power Project (1*660MW) 1,600 1,445
Construction
Construction
1,200
Executing a wide range of projects spanning Thermal Power 800 724
Plants, Hydro Power Plants, Highways, Airports, Industrial
Structures, Transmission and Distribution, Chimneys and Cooling 376
Towers, Water Infrastructure and Heavy Civil Structures. 400
189
‐
FY12 FY13 FY14 9MFY15
© LANCO Group, All Rights Reserved6. Solar Scenario
Addition of capacities:
2009 – 7.2 GW
2010 – 16.6 GW
Global Scenario
Price decreases that have brought PV
close to grid parity in several countries
have encouraged new investors
Expected Growth in the market
3.3-4.8x of current capacity by 2015
Source: EPIA – Global Market Outlook for PV Until 2015
Under the MNRE policy:
New grid projects through NVVN
Indian Perspective
Small grid projects through IREDA
Off-grid solar
MNRE - Phase I
Batch I 620 MW
Batch II 350 MW
Gujarat 365 MW
Rajasthan 200 MW
Source: MNRE - Renewable Energy in India: Progress, Vision and Strategy RPO requirement
© LANCO Group, All Rights Reserved6. Solar Business:
Fully Integrated Strategy enables lowest Rs/kWh
Target in 4 Yrs
Target in 3 Yrs
Project
EPC Integrated
Development
Manufacturing
500 MW/PA 400 MW/PA 250 MW/PA
Aim to be a Global player, as a developer and a third party EPC player. Foray into manufacturing to
support internal requirements and
Current Solar EPC Order Book USD $ 468mn (included in EPC order book) reduce margin volatility, through
the cycle
Current Solar farm development portfolio – 141 MW (Operating 41 MW and
Under Construction 100 MW)
Capacity Project Cost PPA Duration Manufacturing- Phase I
Policy Tariff- Rs/Unit
(MW) (USD mm) (Yrs)
Capex US$ 180 Mm
Solar PV Farm
Debt: Equity 70:30
Rs 15 for 12 yrs, Rs 5
Gujarat Policy 35 89 25 Capacity- Phase I
for next 13 Yrs
JNNSM 5 11.5 14 25 Polysilicon 1250 MT
RPSSGP 1 16.5 2.4 25 Wafer 80 MW
Solar Thermal Farm
Module Line 50 MW
JNNSM 100 10.5 311 25
© LANCO Group, All Rights Reserved7. Natural Resources (Coal):
DomesSc supply falls short of demand Securing coal: a need; an opportunity
1200
1000 Around 70% of demand from Power Sector
981
800
Uncertainty in domes>c supply
773
600
640
625
400 582 Expected Import of coal by 2017 > 150 MT
549
504
464
431
457
493
533
533
540
575
795
200
0 Increasing compe>>on for overseas assets
FY07 FY08 FY09 FY10 FY11 FY12 FY13 BE FY17 BE
Prov Limited opera>onal assets
Produc>on Demand (inld middlings)
Source: Planning Commission (XII Plan draft document)
Griffin Coal
Tasra Open Cast Project (SAIL) Largest opera>onal thermal coal mines in Western Australia,
with Resource base of 1.2 bn Tonne
• Selected as Mine Developer and Operator (MDO) by Steel
Authority of India (SAIL) for Tasra Open Cast Project and Strategic loca>on – Bunbury port ve power project. Good connec>vity of rail and port.
• Located in Jharia coalfield of Dhanbad (Jharkhand) having Current producSon :‐ capacity of 4 mtpa of coal.
geological reserves of approximately 250 million tons
Expansion : Plans to ramp up produc>on to a max of 18 MTPA
• Se^ng up of coal washery and opera>on of power plant by FY 18
of 200‐300 MW capacity based on the secondary
products arising from the proposed Tasra Washery.
© LANCO Group, All Rights Reserved8. Infrastructure Business:
Leveraging Construc>on Exper>se to Build Infrastructure
Lanco has moved into selective infrastructure projects to leverage its EPC experience
Awarded two NaSonal highway projects in Karnataka
c. 81 km stretch connec>ng Bangalore – Hoskote – Mudbagal
c. 82 km stretch connec>ng Neelamangla – Devihalli
Concession periods of 20 years and 25 years respec>vely during which toll will be
collected
Capex of USD $ 308 mn
Grant from NHAI USD $ 60 mn
COD of Devihalli alained on June 25th 2012 and toll collec>on started
COD of Hoskote alained on December 19th 2013 and toll collec>on started
Also built jetty at Mangalore port for Udupi Power Plant
© LANCO Group, All Rights Reserved9. Property Development Business
Lanco Hills is the group’s foray into property development, located in Hyderabad, spread over
100 acres and comprises residential space, office space and IT SEZ
Lanco Hills
• Towers under Phase I are ready for occupation, 97% units sold out, 63% occupied
Residential • In addition to high rise towers, 56 Villas will also be constructed
• IT tower - 0.59 mn sqft ready for occupation, lease deed signed for 80,000 sqft.
Office space
• SEZ : 0.06 mn sqft incubation space – leased out to IT companies
Property Development is restricted to Hyderabad only
© LANCO Group, All Rights Reserved10. Experienced Management Team
LANCO Board
L. Madhusudhan Rao
L Sridhar S. C. Manocha U.K. Kohli
Execu&ve Chairman Vice Chairman Director Director
G. Bhaskara Rao G. Venkatesh Babu P. Abraham R. Krishnamoorthy
Execu&ve Vice Managing Director Director Director
Chairman
Lanco Group Senior Management Team
Finance Power ConstrucSon & EPC Solar
T. Adi Babu P. Panduranga Rao S. C. Manocha Rajkumar Roy
T N Subramanian K. Raja Gopal
17
© LANCO Group, All Rights ReservedPan India Presence
Coal Based
Plants under operation
Plants under construction
Hydro
Plants under operation Vamshi
Vamshi Industrial
Plants under construction
Lanco Uttaranchal
Gas
Teesta
Rajasthan Solar Gurgaon
Plants under operation
Plants under construction
Anpara
Solar
Tasra mine
Solar Power Plants Amarkantak – I & II
Gujarat Solar
Manufacturing at Rajnandgaon- Amarkantak – III & IV
Chattisgarh
Wind Vidarbha Babandh
Plants under operation
Lanco Hills
Hyderabad
Property development
Kondapalli I & II
Chitradurga Kondapalli III
Road development
Coal mine
Registered office
81 km Bangalore – Hoskote – Mudbagal
Corporate Office 82 km Neelamangla – Devihalli
Tanjore power
© LANCO Group, All Rights ReservedWe care for the world we live in
Lanco Foundation
• Member of the UN Global Compact
• Operating in 11 Indian States at 13 locations
• Covering 140 villages & 200,000 population beneficiaries
• we have a number of initiatives in place that help us to make a difference…
• Focused work in the areas of:
Disability
Education
Safe Drinking water
Mobile Health Services
Support of traditional arts & crafts
19
© LANCO Group, All Rights ReservedRecent Awards
Lanco Amarkantak wins “Greentech Safety Award 2013” in Gold category in Thermal
Power sector
Lanco Anpara wins “PowerLine Award” for the Best Thermal Project
Lanco Amarkantak wins “Golden Peacock Occupational Health & Safety Award” for the
Year 2013
Lanco Solar Wins “IESA Award For Most Innovative Product” for 2012
Lanco Kondapalli Wins “Golden Peacock Environment Management Award for
corporate Social responsibility” for 2012
8th Construction World- Annual Award for
“Fastest Growing Construction Company”
Tanjore Power received TERI Corporate Award for
“ Environmental Excellence and Corporate Social Responsibility”
Tanjore Power received GreenTech silver award in Power sector for “Safety Management”
IKU II received IEEMA award for
“Excellence in Fast Track Commissioning of Small Hydro Projects”
Lanco Infratech Ltd received PRSI Golden Jubilee Award for the
“Most Impressive Public Relations Initiatives” 20
© LANCO Group, All Rights ReservedDisclaimer
No representa>on or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness,
accuracy, completeness or correctness of the informa>on or opinions contained in this presenta>on. Such informa>on and
opinions are in all events not current arer the date of this presenta>on. Certain statements made in this presenta>on may
not be based on historical informa>on or facts and may be "forward looking statements" based on the currently held beliefs
and assump>ons of the management of the Company, which are expressed in good faith and in their opinion reasonable,
including those rela>ng to the Company's general business plans and strategy, its future financial condi>on and growth
prospects and future developments in its industry and its compe>>ve and regulatory environment.
Forward‐looking statements involve known and unknown risks, uncertain>es and other factors, which may cause the actual
results, financial condi>on, performance or achievements of the Company or industry results to differ materially from the
results, financial condi>on, performance or achievements expressed or implied by such forward‐looking statements,
including future changes or developments in the Company's business, its compe>>ve environment and poli>cal, economic,
legal and social condi>ons. Further, past performance is not necessarily indica>ve of future results. Given these risks,
uncertain>es and other factors, viewers of this presenta>on are cau>oned not to place undue reliance on these forward‐
looking statements. The Company disclaims any obliga>on to update these forward‐looking statements to reflect future
events or developments.
This presenta>on is for general informa>on purposes only, without regard to any specific objec>ves, financial situa>ons or
informa>onal needs of any par>cular person. This presenta>on does not cons>tute an offer or invita>on to purchase or
subscribe for any securi>es of the Company by any person in any jurisdic>on, including India and the United States. No part
of it should form the basis of or be relied upon in connec>on with any investment decision or any contract or commitment
to purchase or subscribe for any securi>es. The Company may alter, modify or otherwise change in any manner the content
of this presenta>on, without obliga>on to no>fy any person of such change or changes. This presenta>on may not be
copied or disseminated in any manner.
© LANCO Group, All Rights ReservedThank You © LANCO Group, All Rights Reserved
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