Gmr Airports Ltd · NSE:GMRAIRPORT
Gmr Airports — GMR Infrastructure — Investor Presentation (October 2021)
53 slides from Gmr Airports's investor presentation, Oct 11, 2021
Slide 1: Cover letter to exchanges: Schedule of investor meetings
GMR Infrastructure Limited Corporate Office: New Udaan Bhawan, Opp. Terminal 3 Indira Gandhi International Airport New Delhi – 110 037 CIN: L45203MH1996PLC281138 T +91 11 42532600 F + 91 47197181 E gil.cosecy@gmrgroup.in W www.gmrgroup.in October 11, 2021 BSE Limited National Stock Exchange of India
Slide 2: Investor Update October 2021
Investor Update October 2021 0
Slide 3: Disclaimer
DISCLAIMER expectations, estimates, and projections of the directors and management of the Company about the business, industry and markets in which the Company and the All statements, graphics, data, tables, charts, logos, names, figures and all other GMR Group operates and such statements are not
Slide 4: Table of Contents
Table of Contents Particulars Page No Group Overview 4 Key Takeaways 6-8 Airports Business 10-23 COVID Impact 25-29 Non-Airport Business 31-36 Environmental, Social and Governance (ESG) Status Update 38 Annexures 40-51 2
Slide 5: Group Overview
Group Overview Humility | Entrepreneurship | Teamwork a4 Relationships | Deliver the P é | Learning And Inner Excellence | Social Respofsibility | Reshect for Individual
Slide 6: GMR Group is a well known Indian industrial group with diversified interests
GMR Group is a well known Indian industrial group with diversified interests across infrastructure Airports Power Transport & UI Rs 62 bn / 48% Revenue1, Rs 47 bn / 37% Revenue1, Rs 19 bn / 15% Revenue1, FY20 Rs 23 bn EBITDA1 Rs 13 bn EBITDA1 Rs 4 bn EBITDA1 Rs 35 bn / 34% Revenue1, Rs 48 bn / 47% R
Slide 7: Key Takeaways
Key Takeaways Humility | Entrepreneurship | Teamwork a4 Relationships | Deliver the P é | Learning And Inner Excellence | Social Respofsibility | Reshect for Individual
Slide 8: With de-merger on its way and right sizing of balance sheet, a launchpad is set
With de-merger truly on its way and right sizing of balance sheet, a launchpad is set for business growth Demerger • Expect it to complete by Dec’21 • Corporate Debt: reduced from Rs 67 bn to Rs 45 bn (Jun’20 – Jun’21) • PT Gems: Deleveraging Declared an all time high CY20 dividend of $125 Mn In
Slide 9: Over the last one year we have made tangible progress in Airport and Non-Airport
Over the last one year we have made tangible progress in our Airport and Non-Airport businesses • Regulatory uncertainty is behind us (Both Delhi and Hyderabad have entered third control period) • Development and expansion of airports – fully tied up financing Progress Status as Airport Nature Capac
Slide 10: Clearly defined strategies in Airport and Non-Airport sectors
And with the clearly defined strategies in Airport and Non-Airport sectors, we are well-positioned to capitalize on growth drivers Corporate Debt • To bring corporate debt to zero (other than WC debt of DFCC) • Generate free cash in defined time period (3 years) along with the business growth • Crea
Slide 11: Airports Business
Airports Business Humility | Entrepreneurship | Teamwork a4 Relationships | Deliver the P é | Learning And Inner Excellence | Social Respofsibility | Reshect for Individual
Slide 12: 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 2nd Largest6 Private Hub Opportunities for Airport Platform Opportunity in India Operators Globally GMR Airports • Increased preference for With 29% market share in India, One of
Slide 13: Portfolio of world class assets
Portfolio of world class assets Current PAX (FY20) (mn) DIAL, New Delhi, India PAX CAGR • Marquee asset of 67.3 66/119 national importance FY15–20 Crete, Greece Bhogapuram, India • Gateway to India – National Capital Cargo CAGR • Important Tourist with large catchment area 303—DOM • Strategically lo
Slide 14: Synergies from ADP partnership/collaboration
Synergies from ADP partnership/collaboration • Technology • Project Management Complementary • Design • Stakeholder Management Competencies • Hub Development • Financing and bidding to win in emerging • Airport Retail Business markets Despite Covid-19 challenges, both the parties have started workin
Slide 15: Some of the best rated airports in the world
Some of the best rated airports in the world Significant turnaround in service quality reflected in ASQ Rating Rising ASQ rating since inception DIAL ASQ Rating GHIAL ASQ Rating 4.96 4.99 4.98 OMDA 4.83 4.99 5.00 5.00 Requirement of ASQ 3.75 4.71 3.15 4.41 2008 2012 2017 2019 2020 2008 2012 2017 201
Slide 16: Favourable growth drivers expect multi-fold growth in Airport business
On the back of favourable growth drivers, expect multi-fold growth in our Airport business Key Revenue Drivers for Airport Key Driving Factor Our Capabilities/Opportunities Traffic at Indian airports projected to grow at CAGR of 8.6% for next 10 years Aeronautical Traffic Growth Low penetratio
Slide 17: Growth in aero revenue driven by under-penetrated Indian markets
Growth in aero revenue driven by substantially under-penetrated Indian markets …supported by robust growth Substantially under-penetrated aviation market1 drivers Domestic Seats Per Capita International Seats Per Capita USA (2019) 3.03 Supportive Regulatory UAE (2019) 16.22 Environment Japan (2019)
Slide 18: Growth of Non-Aero Business fueled by growing underlying industries
Growth of Non-Aero Business will be fueled by the growing underlying industries Retail Cargo QSR Advertisement Total retail market size (US$ bn) Total cargo transported (mm tonnes) Total QSR Sales (in US$ bn)1 Advertising market size (US$ bn)1 11 1.3x 9.4 1,500 5.5 1.9x 1.7x 2.2x 7.5 3.3 793 5 2020
Slide 19: Non-aero business at GMR Airports
Non-aero business at GMR Airports Delhi Airport Increased penetration of air travel and SPP has led to Non- Aero Revenues Non- Aero Revenue improved Non-Aero Revenue Others Retail (incl FY20 Distribution Ground 15% Duty Free) Handling 5% 29% Non-Aero Revenue (Rs Bn) from diversified F&B 7% strea
Slide 20: Real estate business – Delhi and Hyderabad Airports
Real estate business – Delhi and Hyderabad Airports Delhi Airport Aerocity – Upcoming Central Business District in NCR Demonstrated Track Record of Monetization Recent Developments Prime Real Estate Long Lease Period 230 acres available for Land parcels available 45 acres 23 Acres of development til
Slide 21: Other domestic airports – Goa, Bhogapuram and Nagpur
Other domestic airports – Goa, Bhogapuram and Nagpur 1 Goa Airport 2 Bhogapuram Airport 3 Nagpur Airport In Mn In Mn In Mn 8.5 8.4 2.9 2.8 3.1 6.9 7.6 2.4 2.5 2.7 1.9 2.2 5.4 1.8 1.6 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Existing airport at Vizag is a naval air
Slide 22: Mactan Cebu International Airport
. Mactan Cebu International Airport 2nd Busiest Airport in Philippines ; Present in Mactan Island – a Popular Tourist Destination Description Evolution of Passenger Traffic Shareholding PHP MM • Located on Mactan island in Cebu 11.4 12.7 province, 20 km by road from the heart of 10.0 7.8 8.7 4.3 Ceb
Slide 23: Airport in Crete
Airport in Crete (Largest and most populous Greek island) Primary Airport on Island of Crete1 Leading International Travel Destination Crete 25% 4.7% 5.2% Largest & most populous Greek Share of International 6-Yr International 6-Yr Passenger Island Tourists Arrivals in Greece2 Travel CAGR3 CAGR4 Tou
Slide 24: GAL plans to emerge as leading Integrated Airports Platform
GAL plans to emerge as leading Integrated Airports Platform with wide ranging capabilities GAL Platform PMC & Duty Free Cargo Car Park Airport EPC Services Large Set of Addressable Opportunities across India and Internationally DIAL, GHIAL, Bhogapuram, Nagpur, Bidar and Goa Cebu, Crete & future
Slide 25: Well poised to benefit from domestic and overseas growth opportunities
Well poised to benefit from domestic and overseas growth opportunities FY20 Traffic FY17-20 CY19 Traffic (MPPA) Traffic Growth (MPPA) India Opportunities International Opportunities 2.92 2.46 3.01 2.12 8.7 2.3 10.52 17.85% 16.24% 16.24% 14.94% Amritsar Bratislava, Slovakia Varanasi Indore Beirut Sau
Slide 26: COVID-19 Impact
COVID-19 Impact Humility | Entrepreneurship | Teamwork ay Relationships | Deliver the Prom/ée | Learning And Inner Excellence | Social Respofsibility | ResNect for Individual
Slide 27: Resilience in airports traffic of India
Resilience in airports traffic of India Domestic Air Traffic Volume (Feb’20 – Aug’21) 500 Average Daily Departing Passengers (‘000) National A Daily traffic B 414.9 Lockdown peaked before 400 the second wave 300 275.7 241.3 245.6 247.4 232.9 208.7 203.4 200 184.8 166.5 157 129.8 89.9 99.9 100 64.3 6
Slide 28: Traffic and Cargo rebound at GMR Airports in line with national trend
Traffic and Cargo rebound at GMR Airports has been in line with the national trend Delhi Airport (Avg. daily traffic) Hyderabad Airport (Avg. daily traffic) 140000 90% 45000 80% 72% 72% 76% 68% 120000 71% 80% 40000 65% 70% 67% 62% 62% 65% 70% 35000 100000 60% 60% 60% 53% 60% 30000 48% 46% 45% 50% 80
Slide 29: Two-thirds of India's population projected to be fully vaccinated
Two-thirds of India’s population is projected to be fully vaccinated by the end of FY2022. This will limit the impact of future waves. Covid-19 vaccination rollout projections for India, FY2022 Relaxations on International Travel 8 Mn + doses were administered on average each day between 26 Aug’21
Slide 30: Retail and recreational activity in Delhi and Hyderabad rebounded
Retail and recreational activity in Delhi and Hyderabad rebounded more strongly after the second wave relative to other metros cities. Retail mobility index1 trends in major metropolitan cities, Feb’20-Sep’21 1. Retail Mobility Index is based on the daily retail and recreation activity undertaken in
Slide 31: IT/Digitization initiatives to improve efficiency and passenger experience
IT/Digitization Initiatives taken in last few years will lead to improved operational efficiency and passenger experience at the airport Initiatives at GMR Measures Covid -19 Touchless CUSS, Virtual Helpdesk, Social Distancing CCTV Analytics, Thermal Imaging, UV Based Baggage Disinfectants, Therma
Slide 32: Non-Airport Business
Non-Airport Business Humility | Entrepreneurship | Teamwork a4 Relationships | Deliver the P é | Learning And Inner Excellence | Social Respofsibility | Reshect for Individual
Slide 33: Diversified portfolio of energy business
Diversified portfolio of energy business Key energy assets performing at healthy Gas based plants - Encouraging Hydro assets to add to profitability PLF; steady improvement over years government outlook on gas supply Kamalanga (Coal, 1050MW1) Bajoli Holi (Hydro, 180 MW) Vemagiri (388 MW) Long term o
Slide 34: Energy business next wave of growth
Energy business next wave of growth Distribution Sector on the cusp of Energy Trading well suited to capture 1 2 transformation opportunity Proposed Electricity (Amendment) Bill 2021 – focuses Govt of India is undertaking various measures to on delicensing of distribution increase volume and liq
Slide 35: Revamped Distribution Sector
Foray in distribution sector through synergies in existing portfolio Proposed Electricity (Amendment) Bill 2021 – focuses on delicensing of distribution. Requirement will be to register with appropriate commission Brief of Revamped Distribution Reforms Scheme issued Road Map for GMR by MoP Part A-
Slide 36: Strategy to grow trading business and tap EV opportunities
Our strategy to grow in our trading business and tap EV opportunities Energy Trading GETL is a Trader Member of IGX providing its services to retail 7th largest power ~7% of India’s customers like CGD, Glass, Ceramic, Pharma, fertilizer, Petro-chemical, trader in India market share Power Companies
Slide 37: Diversified portfolio of Toll and Annuity projects
Diversified portfolio of Toll and Annuity projects Adloor-Gundla Pochanpalli (Annuity) Chandigarh-Ambala (Toll) GMR’s Expertise Across the Project Lifecycle GMR Stake 100% GMR Stake 100% EPC Capability Length (Kms) 103 Length (Kms) 35 Successful completion of 9 Highway Concession Period End Sep 2026
Slide 38: Hybrid Annuity Model: GPUIL strategic fit and NHAI pipeline
Hybrid Annuity Model (HAM): GPUIL strategic fit and NHAI pipeline Asset Light Model NHAI Pipeline: HAM Opportunity • With only 15-20% equity contribution a Highway project can Type of No. of Total Cost Total Length be acquired Model Projects (Rs. Bn) (km) • EPC returns further reduce the equity outl
Slide 39: Environmental, Social and Governance (ESG) Status Update
Environmental, Social and Governance (ESG) Status Update
Slide 40: ESG – Key focus of GMR
ESG – Key focus of GMR Environment People • DIAL to achieve “Level 4+, Transition” ACC* in 2020 in Asia • Learning and Development Pacific region and GHIAL to achieve “Level 3+, Neutrality” ACC* • 4,230 employees were provided training in the FY 2020-21 in 2016 and is continuing at the same level •
Slide 41: Annexures
Annexures Humility | Entrepreneurship | Teamwork ay Relati De Ze | Learning And Inner Excellence | Social Respofsibility | Reshect for individuel
Slide 42: De-merger truly on way
De-merger truly on way Resultant Structure – Upon Demerger Schemes of Arrangement GMR Infrastructure GMR Power and Vertical split demerger of the Non-Airport Limited Urban Infra Limited Business of GIL into GPUIL as a going concern Mirror shareholding of GIL in GPUIL with all existing shareholde
Slide 43: Divestment and deleveraging led to reduction in corporate debt
Our divestment and deleveraging initiatives led to reduction in corporate debt in last one year Net Debt (Sector wise) Efforts of last one year Rs Bn Kakinada Special Investment Krishnagiri Special Investment 140 Airports Region: ~10400 Acres Region: ~1900 Acres 174 Corporate 67 546 acres already
Slide 44: Over the year we have raised capital from robust sources
Over the year we have raised capital from robust sources demonstrating our financing capabilities Amount Timeline Purpose GAL Bond Capital Expenditure & Rs 3,000 Mn Aug’21 (Airport) Debt Refinancing Completed DIAL Bond Capital Expenditure & USD 450 Mn Feb-Mar’21 (Airport) Debt Refinancing GHIAL Bond
Slide 45: Key developments
Key developments Business Updates – Tariff Order • Hyderabad Airport third CP (FY22-26) o Yield Per Pax: Increased from Rs. 217 in CP2 (FY21) to Rs. 429 in CP3 (FY22 to FY26) o WACC: 10.84% in CP2 to 12.2% in CP3 o PCPE (pre-control period entitlement): Granted a true up of Rs. 7.4 Bn • Delhi Airpor
Slide 46: Pro-forma financials (Consolidated) of Airport and Non-Airport
Pro-forma financials (Consolidated) of Airport and Non-Airport Rs Bn GMR Infrastructure Ltd Airport Group Non-Airport Group FY20 FY21 FY20 FY21 FY20 FY21 Revenue 1 65.2 57.4 42.8 31.1 23.9 27.5 EBITDA 26.3 10.8 22.0 7.9 4.6 3.5 PAT 2 (22.0) (34.3) (0.6) (12.8) (21.4) (21.4) Net worth 3 2.2 13.2 38.3
Slide 47: Consolidated Income Statement (GIL)
Consolidated Income Statement (GIL) 45
Slide 48: Consolidated Income Statement (Airports)
Consolidated Income Statement (Airports) 46
Slide 49: Consolidated Income Statement (Energy)
Consolidated Income Statement (Energy) 47
Slide 50: Consolidated Income Statement (Highways)
Consolidated Income Statement (Highways) 48
Slide 51: IT Initiatives (1/2)
IT Initiatives (1/2) Initiative Remarks • Touchless CUSS CUSS is a shared kiosk offering airport check-in to passengers without the need for ground staff • Virtual Helpdesk Computer based helpdesk providing info about the airport and flights • UV Based Baggage Removing the disinfectants from baggage
Slide 52: IT Initiatives (2/2)
IT Initiatives (2/2) Initiative Remarks • RFID based tool tracking Based on the RFID, system has been developed through which tools are being tracked system • Robotics Process Robotics Process Automation (RPA) is a software of robots that can carry out a multitude of repetitive Automation rules-base
Slide 53: Cargo traffic remained resilient even during Covid second wave
Cargo traffic remained resilient even during Covid second wave Delhi Airport % of pre-covid levels 97% 96% 95% 92% 92% 91% 90% 87% Jan Feb Mar Apr May Jun Jul Aug Hyderabad Airport 95% 94% % of pre-covid levels 93% 93% 87% 87% 87% 85% Jan Feb Mar Apr May Jun Jul Aug 51
GMR Infrastructure — Investor Presentation (October 2021) on 6ix