Gmr Power And Urban Infra Ltd · NSE:GMRP&UI
Gmr Power And Urban Infra — GMR Infrastructure — Investor Presentation (June 2021)
43 slides from Gmr Power And Urban Infra's investor presentation, June 2021
Slide 1: Investor Presentation Business Overview June 2021
Investor Presentation Business Overview June 2021 0
Slide 2: Disclaimer
DISCLAIMER All statements, graphics, data, tables, charts, logos, names, figures and all other statements relating to future results of operation, financial condition, business information (“Contents”) contained in this document (“Material”) is prepared by GMR prospects, plans and objectives, are ba
Slide 3: Table of Contents
Table of Contents Particulars Pg. No. Institutional Framework 3–7 Business Overview 8 – 11 Airport Sector 12 – 19 Energy Sector 20 – 23 Urban Infrastructure & Transportation 24 – 27 Summing Up 28 – 30 Managing COVID-19 Impact 31 – 34 Strategic Initiatives And Way Forward 35 – 41 2
Slide 4: Institutional Framework
Institutional Framework Humility | Entrepreneurship | Teamwork ay onships | Deliver the Pronyée | Learning And inner Excellence | Social Respoysibility | Reshect for
Slide 5: Visionary Leadership - Building Institution For Perpetuity
Visionary Leadership - Building Institution For Perpetuity… GROUP DIRECTORS ON GIL BOARD INDEPENDENT DIRECTORS ON GIL BOARD RSSLN NC Sarabeswaran GM Rao Bhaskarudu Group Chairman • Ex- nominee director of • Ex- MD of Maruti Udyog RBI and Vysya Bank Limited Board • Founder Chairman of the Group • Sin
Slide 6: External Advisory Council
External Advisory Council Ensures Highest Standards of Governance and Professionalism Dr Ram Charan • Highly acclaimed business advisor, speaker, and author. Group Performance • For 35 years, he's worked with companies like GE, BoA, DuPont, 3M,etc. Advisory Council M Damodaran • Retired IAS, with 30
Slide 7: Vision & Values
Vision & Values GMR Vision “GMR Group will be an Institution in perpetuity that will build Entrepreneurial Organizations, making a difference to Society through creation of Value” Our Values and Beliefs Family Constitution Run the family like business and run the business like family HUMILITY LEARNI
Slide 8: Committed to Giving Back To The Community
Committed to “Giving Back To The Community" through GMR Varalakshmi Foundation “To make sustainable impact on the human development of under- Mission of GMR Varalakshmi Foundation served communities through initiatives in education, health and livelihoods” Through Through Our Four Pronged approach “
Slide 9: Group Overview
Group Overview Humility | Entrepreneurship | Teamwork afi ela
Slide 10: GMR Group: Evolution And Key Milestones
GMR Group : Evolution And Key Milestones Growth Phase Managing Turbulence Consolidation Cash Flow Stabilisation 1996 - 2008 2009 - 11 2012 - 14 > 2015 Group • IPO - INR 8bn • QIP - USD 315mn • QIP - INR 14.8bn (Capital • QIP - USD 1bn • Rights issue - INR 14.0bn Raising) • FCCB - INR 20bn from KIA C
Slide 11: Leading Airport Focused Infrastructure Player
Leading Airport Focused Infrastructure Player Amongst the Largest 101 mm Private airport developers in the world, Passengers handled in FY20 across key largest in India gateway airports 7 nos. ~2,240 acres 53.2% Of airport assets under operations or Of land with strong RE development potential vario
Slide 12: Corporate Structure
Corporate Structure Shareholdings as on 30 June 2021 ++ GMR Infrastructure Ltd FIIs 25.3% Promoter & Promoter Group MF & DIIs 2.0% 61.5% Others 11.2% 51%** 52%* 100%* 100% GMR Airports Ltd GMR Energy Other Energy Assets GMR Highways Ltd Special Investment Region Operational Projects Stake Operationa
Slide 13: Airport: World's 4th Largest Private Airport Developer
Airport: World’s 4th Largest Private Airport Developer
Slide 14: One of the World's Leading Integrated Airport Platforms
One of the World’s Leading Integrated Airport Platforms India’s Largest Airport Operator Leading Integrated Large Market Among the Largest Airport Platform Opportunity in India Private Operators Globally Wide range of capabilities and One of the fastest growing aviation Portfolio of 7 marquee airpor
Slide 15: Demonstrated Execution Capabilities
Demonstrated Execution Capabilities GMR has constantly expanded its capability set over time, as demonstrated across multiple assets and geographies 2019 EPC Bidar Airport (Concession Won) Airport Operations 2016–2017 Nagpur Airport* (Highest Bidder) Non Aero Expertise Bhogapuram Airport 2014 (Conce
Slide 16: GMR Airports: Focus on Emerging Markets
GMR Airports : Focus on Emerging Markets GMR Infrastructure Ltd* 51%^ 49% Groupe ADP GMR Airports Ltd (GAL) India Outside India 64% 63% Delhi Airport Hyderabad Airport 100% Crete Airport, (DIAL) (GHIAL) Goa Airport Greece 67%* 100% Duty Free (DDFS) 40% Duty Free ** 100% Mactan Cebu, 26% Cargo (Celeb
Slide 17: Portfolio of World Class Assets
Portfolio of World Class Assets Current PAX (FY20) DIAL, New Delhi, India (mn) • Marquee asset of PAX CAGR 67.3 66/119 national importance FY15–20 Crete, Greece Bhogapuram, India • Gateway to India – National Capital • Important Tourist Cargo CAGR 152 10.4% 45.99% with large catchment area • Strateg
Slide 18: Non-Aero Businesses: Delivering Strong Growth
Non-Aero Businesses : Delivering Strong Growth Demonstrated Track Record of Successful Execution Across Value Chain of Non-Aero Businesses Duty Free F&B Advertising Car Park Cargo MRO Delhi Airport : Non-Aero Revenues Hyderabad Airport : Non-Aero Revenues^^ INR bn INR bn 22.0 20.9 18.0 3.9 15.3 3.4
Slide 19: Real Estate: Unique Opportunity Beyond Core Airport
Real Estate : Unique Opportunity Beyond Core Airport Delhi Airport Aerocity – Upcoming Central Business District in NCR Marquee Customer Base Prime Real Estate Strategic Location Long Lease Period Between Central Delhi 230 acres available for Land parcels available (current CBD) & Gurgaon developmen
Slide 20: Airports Business: Main Growth Engine
Airports Business : Main Growth Engine Rapidly growing passenger • Low penetration of flying (0.07 trips per capita vs. 0.3 in China) volumes • Government agenda to privatize airports opens up big pipeline for growth Large potential • Expansion plans in place to capitalize on evident growth opportun
Slide 21: Energy Business
Energy Business Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 22: Diversified Asset Base In Strategic Partnership With Tenaga
Diversified Asset Base In Strategic Partnership With Tenaga GMR Infrastructure 52% 30% Tenaga GMR Energy Other Assets 18% Private Equity Investors Rajamundry Deep Financial Gas Thermal Renewables Restructuring (768 MW) Completed Warora Bajoli Holi (600 MW) (180 MW) Gujarat Coal (2 MW) Wind Hydro Kam
Slide 23: GMR Energy Ltd.: Diversified Portfolio of Projects
GMR Energy Ltd. : Diversified Portfolio of Projects Warora Kamalanga Vemagiri Bajoli Holi Project (Maharashtra) (Orissa) (Andhra Pradesh) (Himachal Pradesh) Fuel Coal Coal Gas Hydro Ownership 100% 87.4% 100% 100% ^ Capacity 600 MW 1,050 MW * 388 MW 180 MW CoD September 2013 March 2014 September 2006
Slide 24: Other Energy Projects
Other Energy Projects Rajahmundry Power Plant (Andhra Pradesh) Fuel Gas Ownership 45% Capacity 768 MW CoD • October 2015 • Executed Resolution Plan approved by 100% of lenders o Debt of INR 24 bn brought down to a Sustainable Debt of INR 11 bn Current Status o Balance Debt of INR 9.4 bn converted in
Slide 25: Urban Infrastructure & Transportation
Urban Infrastructure & Transportation
Slide 26: Transportation
Transportation Road Projects Diversified Across Annuity And Toll Revenues Annuity Based Road Projects (133 kms) Toll Based Road Projects (216 kms) GPEPL GCORRPL GACEPL GHVEPL Road GMR Shareholding 100% 90% 100% 90% Road Length (kms) 103 30 35 181 Concession 20 Years 20 Years 20 Years 25 Years Period
Slide 27: Urban Infrastructure – Potential to Unlock Value
Urban Infrastructure – Potential to Unlock Value Kakinada Special Investment Region: ~10400 Acres • Divestment1 of Group’s entire stake in KSEZ2 − Signed Definitive Agreements for divestment by GSPHL3 of its entire 51% stake in KSEZ2 to Aurobindo Realty and Infrastructure Pvt. Ltd − 100% equity stak
Slide 28: EPC in Dedicated Freight Corridor Projects
EPC in Dedicated Freight Corridor Projects DFCC’s Project Network GMR’s Scope and Highlights • GMR along with it’s partner SEW Infra has been awarded contract to construct a part of the eastern corridor: Contract Length Corridor Value Kanpur (Kms) (INR bn) GMR’s stretch Mughalsarai to New of work 18
Slide 29: Summing Up
Humility | Entrepreneurship | Teamwork a
Slide 30: Airports Portfolio Expansion And Real Estate Monetization To Drive Growth
Airports Portfolio Expansion And Real Estate Monetization To Drive Growth In Airports Segment 1 • Second phase of Real Estate monetization at DIAL Real Estate − Commercial Development Rights awarded to consortium led by Bharti realty for ~10 mn sq ft Monetization − For 1st phase (~5 mn sq ft) – upfr
Slide 31: Recent Developments For Value Creation
Recent Developments For Value Creation Energy 1 Reorganizing • Tenaga Nasional Berhad invests INR 2.26 bn in GMR Bajoli Holi Hydropower Ltd. Energy Assets • Achieved tariff increase in Warora & Kamalanga related to ‘change in law’ and ‘coal cost pass-through’ 2 Resolution • Executed resolution plan
Slide 32: Managing COVID-19 Impact
Managing COVID-19 Impact Humility | Entrepreneurship | Teamwork a7/i Relationships | Deliver the fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 33: How Conditions Created by Covid were Handled
How Conditions Created by Covid were Handled? 1. Focus on safety and welfare of employees 2. Liquidity raising and preservation • Raising bonds in Hyderabad (GHIAL) & Delhi Airports (DIAL) – USD 750 mn1 • Refinancing of bonds at GMR Airports Ltd – ~USD 415 mn2 • Financial closure at Goa for capex of
Slide 34: Air Traffic Begins to Recover post Second Wave
Air Traffic Begins to Recover post Second Wave Delhi Airport1,2,3 Passenger confidence returns with the decline in Covid 1st Week 39th Week 52nd Week 55th Week 25-31 May 2020 15-21 Feb 2020 17-23 May 2021 7-13 Jun 2021 Feb’21 was the best month post Covid Decline in air traffic in April 2021 and
Slide 35: Other Businesses
Other Businesses Energy Business FY20 FY21 June 2021* 82% 75% 77% 65% 69% Power demand and coal supply are improving 64% as the lockdown is easing up During FY21, the dispatch to the discoms under the PPA have been above the normative availability as defined in the respective PPA Warora Kamalanga
Slide 36: Strategic Initiatives
Strategic Initiatives Humility | Entrepreneurship | Teamwork ay/s &
Slide 37: Strategic Partnership with Groupe ADP
Strategic Partnership with Groupe ADP Considerable synergistic advantages, bolstering GMR’s growth plans About Group ADP Investment Merits Strategic Rationale Leverage Expertise One of the largest airport groups in Creation of world-class Airport Development and Europe based out of Paris (France)
Slide 38: Significant Move Towards Deleveraging
Significant Move Towards Deleveraging ADP Transaction Details Minority stake sale of 49% in GMR Airports Ltd (GAL) INR 98.13bn received Tranche I: INR 52.5bn received in February 2020 Tranche II: INR 45.7bn received in July 2020 ─ Including INR 10bn primary capital @ GAL Investment ─ Balance s
Slide 39: Demerger Update
Demerger1 Update Received most of the NOCs including SEBI, Stock Exchanges; NCLT meeting to convene shortly Current Structure Schemes of Arrangement Promoter Group Public • Vertical split demerger of the Non-Airport Business GIL L of GIL into GPUIL EPC & Urban Airport Sector Energy Sector Infra. Sec
Slide 40: Demerger – creating pure plays in Airport and Non-Airport Businesses
Demerger – step in right direction creating pure plays in Airport and Non-Airport Businesses of the Group Objectives of Demerger GIL to emerge as India's Only Pure-Play Listed Airports Company, value unlocking of Airport business Simplification of the Corporate Holding Structure and sharp management
Slide 41: Timeline and Approvals
Timeline and Approvals Particulars Timeline and Approvals Appointed date • 1 April 2021 • SEBI and stock exchanges – approval received Approvals • Equity Shareholders and Creditors required • Regulatory Authorities and Income Tax Authority • NCLT Mumbai • Scheme filed with NCLT on Mar 5, 2021 • Shar
Slide 42: Strategy Going Forward for FY22
Strategy Going Forward for FY22 1. Complete the Demerger within FY22 (Create two listed pure-plays) 2. Further reduction of debt through monetization of assets/businesses 3. Remaining debt to be refinanced through dollar bonds at GIL (similar to DIAL & GHIAL) 4. Bidding for new airports within India
Slide 43: GMR Infrastructure – Key Takeaways
GMR Infrastructure – Key Takeaways 01 Significant deleveraging of the group via equity capital transaction with marquee partners 02 Pure play airport business on the cards – to drive GMR’s leadership in airports business Strong underlying macro fundamentals, including fast growing aviation market in
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