IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — India Grid Trust — Investor Presentation (February 2018)
34 slides from IndiGrid Infrastructure Trust's investor presentation, February 2018
Slide 1: Investor presentation February 2018
Investor presentation February 2018 1
Slide 2: Disclaimer
Disclaimer Th is presentation is prepared and issued by Sterlite Investment Managers Limited (the “Investment Manager”) on behalf of and in its capacity as the investment manager of India Grid Trust (“IndiGrid”) for general information purposes only without regards to specific objectives, financial
Slide 3: Index
1. Vision and strategy 2. Assets and performance Index 3. Governance 4. Growth 5. Closing remarks 6. Appendix 3
Slide 4: IndiGrid Vision
IndiGrid Vision To become the most admired yield vehicle in Asia which is built upon solid fundamentals of transparency, governance & providing superior risk-adjusted returns to unitholders De li ve r B e st-in-class INR 3 0 0 B N p re dic tab le c o r po r a t e AUM b y 2 0 2 2 D P U and governance
Slide 5: IndiGrid Strategy
IndiGrid Strategy Focused Business Value Accretive Optimal Capital Maximize Model Growth Structure Distribution Focus on owning • 3-5% DPU growth • Cap of 49% • Minimum 90% net power transmission YoY consolidated leverage cash to be assets with of total asset value distributed • Acquire assets from
Slide 6: Assets and performance
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Slide 7: IndiGrid - India's First Power Sector InvIT
IndiG rid- India’s F i r s t P o w e r S e c t o r I n v I T • Owns inter-state high voltage power transmission assets • Fully operational and revenue generating portfolio PTCL • Focused on stable and sustainable distribution to unitholders • Strong growth pipeline with ROFO on Sponsor assets RTCL J
Slide 8: IndiGrid – Key Stakeholders
I ndi G r i d – Key Stakeholders Public Unitholders Sterlite Power Grid Ventures Limited Sponsor & Project Manager ~20.7% ~79.3% Sterlite Investment Managers Limited Trustee Investment manager SGL1 Proposed third party investment (expected to be completed by Q1 FY19) BDTCL1 JTCL1 RTCL2,4,8 PKTCL2,5,
Slide 9: Financial performance
Financial performance Consolidated Q1 FY18 Q2 FY18 Q3 FY18 YTD FY18 Financials - One month of Full Quarter of Full Quarter of Seven months IndiGrid (INR Mn) operations operations operations of operations Revenue 406 1,323# 1,267 2,996 EBITDA 369 1,223 1,173 2,765 NDCF 258 1,014 1,013 2,285 DPU (INR)
Slide 10: Operational performance
Opera tio nal p erf orm ance BDTCL JTCL Avg. availability (since COD) : 99.8% Avg. availability (YTD FY 18) : 99.9% Avg. availability (since COD) : 99.8% Avg. availability (YTD FY 18) : 99.9% 99.8% 99.9% 99.7% 99.9% 100.0% 99.6% 99.8% 99.8% 100.0% 99.9% 1.8% 1.9% 1.7% 1.9% 2.0% 1.6% 1.8% 1.8% 2.0% 1
Slide 11: Governance
Governance 11
Slide 12: Governance
Governance • InvITs are governed by the Securities and Exchange Board of India (Infrastructure Framework Investment Trusts) Regulations, 2014 • InvITs have to be registered with SEBI • Atleast 90% of InvIT’s assets have to be revenue generating for 1 year or more prior to acquisition unless InvIT is
Slide 13: Governance
Governance Unitholders have the ability to • appoint and remove Investment Manager and Project Manager Unitholder • vote on increase in leverage over 25% rights • vote on acquisition or divestment of assets • vote on related party transactions • Maximum gearing of 49% permissible with credit rating
Slide 14: Experienced Board of Directors
• Independent Non-Executive Director of Mapletree Logistics Trust Management Tarun Kataria • Almost 30 years of experience in banking and capital markets in New York, Hong Additional Independent Kong, Singapore, Mumbai Director • MBA in Finance from the Wharton School of the University of Pennsylvan
Slide 15: Board Committees: Strong Independent Representation
• 2/3rd Independent Directors Audit Committee • Chairperson – Independent Director • 100% Independent Directors Board Investment • Approve investment decisions in relation to Committees: Committee related party transactions, further issue of units Strong Independent Nomination and • 2/3rd Independen
Slide 16: Growth strategy
Growth strategy 16
Slide 17: Strong pipeline of existing Sponsor Assets
Strong pipeline of existing Sponsor Assets East North Odisha Gurgaon- Khargone NER-II NRSS XXIX Goa Tamnar Interconnection Generation Phase Palwal Transmission Ltd Transmission Transmission Ltd Transmission Ltd Transmission Ltd Transmission (KTL) Limited (NTL) Project Ltd. (ENICL) (OGPTL) Ltd (GPTL)
Slide 18: AUM in INR billion
Sponsor asset injection alone underpins 12% IRR and AUM of INR 200bn FY2018 FY2019-2020 FY2020-2021 FY2022-2023 Equity IRR at INR 100/unit 8.6% 10% 12% AUM in INR billion First third party investment by IndiGrid to be completed by Q1 FY 2019 Note 1. IPA AUM as of 30 Sep 2017. 2. MRP (MTL, RTCL and P
Slide 19: Indicative DPU considering Sponsor assets and PTCL
Indicative DPU considering Sponsor assets and PTCL 15.0 IPA assets MRP Injection I Injection II Injection III 13.0 Acquisition of 3rd party assets and future Sponsor projects 11.0 9.0 DPU (INR) 7.0 5.0 3.0 1.0 © INDIGRID 19
Slide 20: Closing remarks
Closing remarks 20
Slide 21: IndiGrid a value proposition
IndiGrid a value proposition Strong Industry Outlook: Structural Growth story $46 billion opportunity Experienced Sponsor with Track Record 30% Share in TBCB auctions Fully Contracted, Long-term Assets with Minimal Counter Party AAA Rated Risk Portfolio IRR of 11% Growth Pipeline Seven Spo
Slide 22: Appendix
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Slide 23: MRP - Acquisition consideration and financing
MRP - A cqu isi tio n con sid era tion an d fi nan cing Previous acquisition Final acquisition Asset consideration (INR mn) consideration (INR mn) RTCL 3,738 3,542 Additional discount will lead to an equity PKTCL 6,186 5,861 IRR of 11% at current MTL* 4,957 4,697 price Total 14,881 14,100 • Acquisit
Slide 24: RAPP Transmission Company Limited (RTCL)
R A P P Transmission Company Limited ( R T C L ) RAPP Transmission Company Limited • Project was set up to transfer power from the atomic power plant near Kota in Rajasthan to Shujalpur in Madhya Pradesh to provide the path for the evacuation of electricity generated at RAPP-7 and 8 Overview • The n
Slide 25: Purulia & Kharagpur Transmission Company Limited (PKTCL)
Purulia & K h a r a g p u r Transmission Company Limited ( P K T C L ) Purulia & Kharagpur Transmission Company Limited • Connecting link further strengthening the interconnection between the West Bengal state grid and ISTS t o strengthen Overview the transmission system in the Indian states of We
Slide 26: Maheshwaram Transmission Limited (MTL)
Maheshwaram Transmission Limited ( M T L ) Maheshwaram Transmission Limited • Maheshwaram Transmission Limited (MTL) will create a key component to enable Southern region to draw more power from North-East-West (NEW) Grid and address the issue of power stability in Telangana region to a great extent
Slide 27: Recently signed agreement for third party Asset
Recently signed agreement for third party Asset 27
Slide 28: PTCL - Valuation and purchase consideration
PT CL - Val uat ion an d pu rch ase c ons ide ratio n Independent Valuation & Purchase Consideration EV as per Independent Valuation1 PTCL 2,247 (INR mn) Patran, Punjab Purchase Consideration (INR mn) ~2,320 c Premium over Independent 3% Premium Valuation Note 1. Source independent valuation report
Slide 29: PTCL overview
PTCL overview Patran Transmission Company Limited • Project awarded to TEECL by the Ministry of Power on a BOOM basis Overview • Project executed by TEECL on a turnkey contract basis • Project comprises of 400/ 220 kV substation with 14 bays in Patran, Punjab and LILO of both Description circuits of
Slide 30: Power transmission industry update
Power transmission industry update 30
Slide 31: Sector fundamentals point to strong growth in the next 3 years
Sector fundamentals point to strong growth in the next 3 years • Saubhagya Scheme requires a six fold jump in the pace of electrification Distribution • Deen Dayal Upadhyaya Gram Jyoti Yojana (DDJUGY) & Ujwal DISCOM Demand for Power Reforms Assurance Yojana (UDAY) helping rural electrification and r
Slide 32: Further growth potential from near term bids
Furth er gr owt h pote nti al f rom ne ar te rm bids… Current Inter-State and Intra-state TBCB tenders Name of Tender Stage of Tender Location Estimated Cost (INR billion) WR-NR Interconnection RFP UP, MP 10.8 Ultra Mega Solar Park in Fatehgarh RFP Rajasthan 6.2 Connectivity and LTA to HPPCL RFP Him
Slide 33: Glossary
Glossary Availability Percentage amount of time for which the asset i s available for power flow BDTCL Bhopal Dhule Transmission Company Limited BOOM Build, Own, Operate & Maintain COD Commissioning Date DPU Cash paid to the Unitholders in the form of interest/ capital repayment / dividend EGM Extra
Slide 34: Thank You
Thank You
India Grid Trust — Investor Presentation (February 2018) on 6ix