Noida Toll Bridge Co. Ltd. · NSE:NOIDATOLL
Noida Toll Bridge — Investor Presentation (November 2016)
35 slides from Noida Toll Bridge's investor presentation, Nov 23, 2016
Slide 1: Presentation on NOIDA Toll Bridge Company Limited
Presentation on NOIDA Toll Bridge Company Limited November 23, 2016
Slide 2: Delhi Noida Bridge…. Origins
Delhi Noida Bridge…. Origins NOIDA was established by Govt. of U.P. in 1976 as an industrial township on the banks of the River Yamuna, next to Delhi Ministry of Urban Development, GoI took the initiative to create a fresh link between Delhi and Noida, to decongest Delhi as the existing bridges
Slide 3: MoUD Steered the Project
MoUD Steered the Project MoUD constituted a Steering Committee in June 1992 to supervise project implementation Officials from Ministry of Urban Development, Government of Delhi, GoUP, Delhi Administration, DDA, NOIDA, MoST & IL&FS were nominated. All project approvals were accorded by the Ste
Slide 4: Project Milestones
Project Milestones The Concession Agreement (CA) was negotiated between January 1997 & October 1997 between Govt. of NCT Delhi, GoUP, NOIDA, World Bank, ADB & IL&FS NOIDA appointed SBI Caps as a Transaction Advisor August 1997 Cabinet of GoUP approved the Project and constituted an Empowered C
Slide 5: Other Agreements
Other Agreements The Govt. of UP and Govt. of NCT Delhi executed a separate Agreement recognizing and affirming the Concession Agreement between NOIDA and NTBCL. The Support Agreement was executed on January 14, 1998 As the project alignment covered lands in NCT Delhi and NOIDA, UP, and envisa
Slide 6: Salient Features of the Concession
Salient Features of the Concession “India’s first private green-field toll bridge project on a PPP format” • Concession Model : Build-Own-Operate-Transfer (BOOT) • Concession Structure : Fixed return, Variable period • Return on Investment : Post tax IRR of 20% pa • Concession Period : 30 years or e
Slide 7: Project Features
Project Features To be constructed on BOOT basis with IL&FS responsible for raising all finance Greenfield Project between two parallel toll-free road bridges ie. Nizamuddin and Okhla Barrage Construction of 8 lane, 552 mtr bridge across the river with 3 interchanges, clover leaf flyovers, riv
Slide 8: Operation & Maintenance… features
Operation & Maintenance… features Automated State of the art Toll Management facility with automatic vehicle classification ETC /RFID friendly toll plaza Minimum waiting time for vehicles even in peak hours (3-4 min) 8
Slide 9: Provisions of the Concession Agreement
Provisions of the Concession Agreement A. Concession Period (a) The Concession Period shall commence on the Effective Date and shall extend until the earlier of: i. a period of 30 years from the Effective Date; or ii. the date on which the Concessionaire shall recover the Total Cost of Project and t
Slide 10: Concession Provisions
Concession Provisions B. Total Cost of Project: The Project Cost shall be determined as on the Project Commissioning Date by the Independent Auditor who shall seek the assistance of the Independent Engineer to determine the Cost of Construction component of the Project Cost. C. Fee (a) The Base Fee
Slide 11: Concession Provisions
Concession Provisions D. Returns means the returns on the Total Cost of Project recoverable by the Concessionaire from the Effective Date at a rate of 20% per annum, as defined in Section 14.2 of this Agreement E. Calculation of Returns (a) The amounts available for appropriation by the Concessionai
Slide 12: Independent Auditor & Independent Engineer
Independent Auditor & Independent Engineer As per the provisions of the Concession Agreement, the Independent Auditor and Independent Engineer, jointly appointed by NOIDA and NTBCL have Certified the Total Project Cost and Returns on an annual basis. 12
Slide 13: Project Implementation
Project Implementation A consortium of Mitsui-Marubeni, Japan was appointed as EPC Contractor through an international competitive bid process as per World Bank norms / procedures Against an original construction period of 29 months, construction completed 4 months ahead of schedule with signifi
Slide 14: Project Funding– 1998
Project Funding– 1998 Financial close for DND was achieved in 1998 against the backdrop of the Pokhran blasts and International sanctions on India. This was the first private green field toll bridge to be financed on a Project recourse basis without any financial guarantees from Government/NOIDA
Slide 15: Financing Structure
Financing Structure Description Amount (Rs Crs) % to Total Debt* 285 70 Equity 123 30 Total 408 100 Source Amount (Rs Crs) *Debt IL&FS (World Bank Line of Credit) 60 Deep Discount Bond – Public 50 Rupee Term Loan from FIs/Banks 175 Total Debt 285 15
Slide 16: Shareholding Pattern NTBCL
Shareholding Pattern NTBCL Category No. of Holders Total Shares % To Equity PROMOTER – IL&FS* 1 49,095,007 26.37 GOVERNMENT (NOIDA) 1 10,000,000 5.37 PUBLIC AND OTHERS 82,908 127,099,995 68.26 Total 82,910 186,195,002 100.00 * In 1992, IL&FS was 80% owned by Government institutions 16
Slide 17: Shareholder Returns
Shareholder Returns NTBCL Equity is listed on BSE, NSE since 2001 and GDRs are listed on the AIM segment of the London Stock Exchange since 2006 The Company has around 82,000 domestic and international shareholders Operations commenced in Feb 2001 and the fist dividend paid in FY 2010-11 Ret
Slide 18: Project Cost Details
Project Cost Details Rs. Crore EPC Cost 212.00 Ashram Flyover/Shahadra Bridge/Approach Road 20.00 Construction Cost 232.00 Land Acquisition/PAP 10.00 Prelim / Preoperative Expenses 12.24 Financing Charges & Kampsax Fees 25.33 Sub-Total 47.57 Contingencies Price Escalation Forex Fluctuation 39.63 Phy
Slide 19: Debt Profile prior to CDR
Debt Profile prior to CDR Particulars Rs in crs Interest Rate** DDBs 50.00 14.72% TERM LOANs From Banks Canara Bank 16.50 14.00% Central Bank of India 10.00 14.00% Punjab National Bank 16.50 14.00% State Bank of Patiala 6.00 14.50% Union Bank of India 16.50 14.50% Vijaya Bank 10.00 13.00% Bank of Ba
Slide 20: Heavy initial losses.. need for restructuring
Heavy initial losses.. need for restructuring In the initial years 2002-2005, the operations were unsustainable Traffic in 2002 : 18000 PCUs per day v/s 83000 PCUs projected. Given the high cost of debt (14%-16%) and lower than projected traffic, restructuring of debt became necessary Cumula
Slide 21: Need for Restructuring
Need for Restructuring Noida Toll Bridge was a pioneering project in the PPP format. At that point, infrastructure financing being new to the banking system, the loan tenors were limited 12 years Infrastructure projects, particularly in the road sector, typically have back ended cash flows I
Slide 22: Summary of Financial performance
Summary of Financial performance Rs. million Year ending March 31, 2002 2003 2004 2005 Total Income 118.1 187.3 258.6 317.4 Operating Expenses 64.8 82.3 82.4 91.2 Operating Profit 53.2 105.1 176.2 226.1 Depreciation/Write Offs 83.5 78.5 16.8 17.5 Interest Costs 426.0 312.5 370.5 373.6 Profit After T
Slide 23: Fee Revisions
Fee Revisions FY Remarks 2009-10 Not Implemented : Rates implemented on 01/04/09 & rolled back on 27/04/2009 2010-11 Not Implemented : Rates implemented on 15/02/11 & rolled back on 17/02/2011 2011-12 Partly Implemented wef November-2011 2012-13 Not Implemented : Rates implemented on 10/11/12 & roll
Slide 24: Financial Restructuring...2002-2006
Financial Restructuring...2002-2006 A. CORPORATE DEBT RESTRUCTURING (October 2002) The average daily revenue in 2001-02 was Rs. 3 Lacs as against an interest cost of Rs. 12 Lacs/day. The Company could not service the debts beyond March 2002 and was on the verge of becoming an NPA The Consortiu
Slide 25: Financial Restructuring...2002-2006 ..contd
Financial Restructuring...2002-2006..contd B. DDB RESTRUCTURING (October 2005) The DDBs would have matured to Rs. 450 crore by 2016. The Company was in no position to service this liability. The DDB holders recognised this and agreed to a scheme of restructuring envisaging sale out to IDFC/IL&FS
Slide 26: Financial Restructuring...2002-2006 ..contd
Financial Restructuring...2002-2006..contd C. Issue of Global Depository Receipts (GDR), in London, 2006 NTBCL became one of the first Toll Road Companies in the world to list on the London Stock Exchange (LSE–AIM) by issuing GDRs of US$ 50 million The GDR receipts were used to retire the entire
Slide 27: Audits
Audits Independent Audit Independent Auditor has certified annually from 2001 onwards, the Total Cost of the Project outstanding and Returns thereof The last certificate issued is upto March 2016 Annual certification from 2001 is available for examination 27
Slide 28: Project Cost v/s IRR
Project Cost v/s IRR The Concession Agreement for DND provided for 20% return. The actual return received to date is : Equity IRR (on Dividend payout) 5.95% (Dividend amount; Rs 204.82 crs + DDT 38.25crs) Project IRR 6.93% It has been stated that against a Project Cost of Rs. 400 Crs, DND has
Slide 29: Project Cost and Debt repayment
Project Cost and Debt repayment Rs in crores Estimated Project Cost 408.17 Funding Equity incl. FCD 122.40 DDBs 50.00 Debt 235.77 408.17 Repayments Debt 235.77 DDBs 50.00 285.77 Interest Interest on DDBs 66.84 Interest on FCD 5.05 Interest on TL 213.80 Funded Interest 27.29 ZCB-B 55.54 368.53 Repaym
Slide 30: Project IRR as per Certified Return
Project IRR as per Certified Return Rs in crores Date Project Cost +major Maint Surplus (Income-Exp-Tax) Net Invt IRR 6-Feb-01 325.99 - 325.99 31-Mar-01 - 0.17 (0.17) 31-Mar-02 5.71 2.57 3.13 31-Mar-03 0.37 8.32 (7.95) -82.855% 31-Mar-04 0.08 15.20 (15.12) -60.302% 31-Mar-05 2.90 19.72 (16.82) -45.1
Slide 31: Illustration – Excluding O&M Expenses and taxes
Illustration – Excluding O&M Expenses and taxes Rs in crores Date Project Cost +major Maint Surplus = Income Net Invt IRR 6-Feb-01 325.99 - 325.99 31-Mar-01 - 1.16 (1.16) 31-Mar-02 5.55 10.37 (4.82) 31-Mar-03 (2.39) 17.97 (20.36) -71.650% 31-Mar-04 (0.67) 24.95 (25.62) -49.829% 31-Mar-05 0.21 30.77
Slide 32: Traffic – Projected v/s Actual
Traffic – Projected v/s Actual Year Average Daily Traffic-Nos * Projected Actual % of Projected 2001 86479 17158 20% 2002 97081 22509 23% 2003 107612 38474 36% 2004 118255 47547 40% 2005 144210 52860 37% 2006 153493 60840 40% 2007 162805 68652 42% 2008 172145 84261 49% 2009 181428 99779 55% 2010 190
Slide 33: Toll Revenue– Projected v/s Actual
Toll Revenue– Projected v/s Actual Year Revenue- Rs in Crs * Projected * Actual % of projected 2001 6.86 1.16 17% 2002 56.00 9.77 17% 2003 64.67 16.61 26% 2004 75.95 22.58 30% 2005 95.67 27.04 28% 2006 108.02 33.07 31% 2007 119.18 39.59 33% 2008 133.61 54.89 41% 2009 149.33 66.26 44% 2010 164.96 70.
Slide 34: Aggregate cost and income over life of project
Aggregate cost and income over life of project Particulars Rs in Crs Project Cost as per Concession Agreement (Incl. Major 431.55 Maint) O&M Expenses* 309.69 Interest* 307.01 Depreciation* 88.01 Total Expenses 1136.26 Total Income* 1103.54 Net (32.72) *As per Statutory Accounts from 2001 to March-20
Slide 35: THANK YOU
THANK YOU
Noida Toll Bridge Company — Investor Presentation (November 2016) on 6ix