Gmr Airports Ltd · NSE:GMRAIRPORT
Gmr Airports — GMR Infrastructure — Investor Presentation (February 2022)
42 slides from Gmr Airports's investor presentation, Feb 26, 2022
Slide 1: Intimation of investor meetings cover letter
GMR Infrastructure Limited Corporate Office: New Udaan Bhawan, Opp. Terminal 3 Indira Gandhi International Airport New Delhi - 11 0 037 CIN: L45203MH1996PLC281138 T +91 11 42532600 F + 91 47197181 E gil.cosecy@g mrgroup .in W VW/IN.g mri nfra.in February 26,2022 BSE Limited National Stock Exchange o
Slide 2: Business Update February 2022
GMR Infrastructure Limited Business Update February 2022 0
Slide 3: 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 4: Table of contents
Table of contents Particulars Page No Company overview & relative positioning 3-6 Industry & portfolio overview 7 - 10 Regulatory overview 11 – 12 Growth strategy 13 – 23 Key financials 24 - 27 Partnership, leadership and ESG 28 - 32 Annexures 34 - 40 2
Slide 5: Company overview & relative positioning
Company overview & relative positioning
Slide 6: Leading global airports platform with end to end capabilities across the airport value chain
Leading global airports platform with end to end capabilities across the airport value chain One of the largest airports platform… …with significant international experience Global partnerships have helped develop capabilities across the value chain 2nd Largest1 globally 179 mn3 Largest in India Ope
Slide 7: World's 2nd largest private airport operator
World’s 2nd largest private airport operator,… No. of Assets 49 91 4 5 5 14 2019 Passengers 255.0 102.6 94.5 94.0 63.9 48.7 (mn pax) 10% 20% Traffic Split by Geography2 80% 100% 100% 100% 100% 90% Developed economies Emerging economies Geographic Europe, Asia and Europe and Latin Asia and Europe Eur
Slide 8: India's largest and most experienced pure-play airports platform
…India’s largest and most experienced pure-play airports platform GAL is India’s only listed airport operator with an uniquely crafted credible story Anchorage Strategic partnership Marquee gateway assets with a renowned global Airport operating with significant growth ~15 years ~2 years ~5 years2 o
Slide 9: Industry & portfolio overview
Industry & portfolio overview
Slide 10: GAL has exposure to some of the fastest growing emerging markets
GAL has exposure to some of the fastest growing and attractive emerging markets (India and South East Asia) GAL’s core markets expected to have the highest growth rate among all regions globally Centre of gravity continues to shift towards east Ranking of aviation markets 10 US China 8.9% 9 China US
Slide 11: Asian aviation market poised to grow on attractive sector dynamics
Asian aviation market is poised to grow substantially on the back of attractive sector dynamics Rising middle class population in India and SEA, supported by Aggressive fleet expansion by low cost carriers (LCC) in South strong GDP growth Asia and South East Asia to support rising demand Middle clas
Slide 12: India at an inflection point, offering massive growth potential
India, GAL’s core market, is at an inflection point, offering massive potential for future growth China case Benchmarking with China suggests that India can expect a boost in International Outbound Traffic in the study next decade supported by tourism, migration & trade India expected to reach China
Slide 13: Regulatory overview
Regulatory overview Humility | Entrepreneurship | Teamwork agi Relationships | Deliver the fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 14: Mature and transparent regulatory environment, attracts global players
Mature and transparent regulatory environment, attracts global players Normalization of airport economic regulation Clarity on nodal agencies - no regulatory vacuum Assured return on regulatory assets through cost plus model Uniform Regulates tariffs, fees and other expenses for airports Clari
Slide 15: Growth strategy
Growth strategy Humility | Entrepreneurship | Teamwork agi Relationships | Deliver the fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 16: Clearly identified growth and profitable levers at play
Clearly identified growth and profitable levers at play GAL has mastered both Focused on building its platform play model and organic + inorganic growth strategy monetising its real estate assets Real Organic Estate Well positioned to Inorganic transition into Platform a full-service play operator 1
Slide 17: Global portfolio of marquee assets
1 Global portfolio of marquee assets... Faster ramp-up given old airports with existing traffic to be closed post COD of new airports being constructed by GAL DIAL GHIAL Mactan Cebu Bidar Bhogapuram MOPA Nagpur Crete Medan Airport / % GAL stake (64%) (63%) (40%) (63%)(1) (100%) (100%) (100%)(2) (21.
Slide 18: Substantial headroom for growth in under-penetrated India
...with substantial headroom for growth in a highly 1 under-penetrated market like India Pax (mn) – Delhi airport Pax (mn) – Hyderabad airport Pax (mn) – consol GAL airport capacity 132.3 215.3 Will be operational 49.8 in the next 2-3 34.6 8.4 years 67.3 84.7 394 17.8 21.7 97.7 3.9 41.4 49.5 17.7 94
Slide 19: World class airport assets with potential to serve as regional hubs
1 World class airport assets with potential to serve as regional hubs GAL value proposition / Market opportunity Evolution in narrow body aircraft technology competitive advantage Large number of Narrow body LCCs well Medan / Delhi can Re-engineered narrow Evolving consumer unserved and positioned t
Slide 20: Non-aero future upside driven by strong consumption story
Non-aero future upside driven by strong consumption story 1 and customized theme based initiatives Promising growth fueled by favourable demographic and consumer factors 1 Significant headroom vs international markets Retail Cargo QSR Advertisement Duty Free Non Aero Revenue Total retail market size
Slide 21: Track record and ADP partnership position GAL to win new airport bids
Proven track record and ADP partnership position GAL favourably to 2 win new airport bids across India and other emerging markets FY20 Traffic FY17-20 CY19 Traffic Immediately available growth (MPPA) Traffic growth International opportunities with focus on (MPPA) opportunities in India fast growing
Slide 22: Focus on creating an asset light ancillary platform
3 Building on its existing capabilities, GAL plans to focus on creating an asset light ancillary platform… Current strategy Future strategy (expanding presence across (typical airport developer) value chain) Airport development and Self operated operations Self operated Self operated Concessioned ou
Slide 23: Phased approach targeting own network and external airports
…in a phased manner targeting opportunities across 3 both own network as well as external airports GAL platform growth strategy – significant progress made across all 3 phases Phase 1: Phase 2: Phase 3: Platform building Own / network airports External opportunities Build and scale ancillary Scale p
Slide 24: Building a holistic ecosystem with diverse sources of income
3 GAL is favourably positioned to build a successful value additive holistic ecosystem with diverse sources of income Digital initiatives Creating a one stop experience centre for non-passenger traffic Digital marketplace Increase in sale by online booking hotels, cabs etc. Delhi Lower customer
Slide 25: Thematic monetisation of prime airport commercial land
Harness the potential of prime airport commercial land through 4 thematic monetisation (healthy mix of leasing and development) Long Change in monetization strategy Excellent Prime real lease Superior connectivity- estate period rental by highways (upto 2060) yields Development and metro Leasing (Ow
Slide 26: Key financials
Key financials Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 27: Robust financial performance with signs of recovery post Covid
Robust track record of financial performance with positive signs of recovery post Covid impact Consolidated Indian airports pax (mn)1 DIAL & GHIAL non aeronautical revenue (US$mn)3 Impacted by closure of Jet airways, 464 507 587 483 496 570 414 415 Pakistan air space and [] Net Revenue (US$mn) Covid
Slide 28: Strong cash generation profile from diverse sources of income
Strong cash generation profile from diverse sources of income boosting return metrics Capex (US$mn) Diverse sources of income and cash generation 595 Significant FCFE generation post 2024 given end of capex cycle 401 382 Reliable dividends from mature assets like DIAL and GHIAL 296 211 Stable manage
Slide 29: Exploring an Investment Platform to unlock value of asset portfolio
GAL potentially exploring options to set up an Investment Platform to unlock value of its asset portfolio GMR Group’s long term vision Bid and acquire Develop and Operationalize with Churn assets/pair stake airport assets Finance stable cash-flows to recycle capital GMR Infrastructure Ltd (Airport)
Slide 30: Partnership, leadership and ESG
Partnership, leadership and ESG
Slide 31: Strategic partnerships with global majors, Groupe ADP
Proven track record of strategic partnerships with global majors to create synergistic advantages Strategic partnership with majority French government owned and Paris based Groupe ADP About Group ADP Investment Merits Strategic Rationale Leverage Expertise One of the largest airport groups in Europ
Slide 32: Best-in-class management team and strong corporate governance
Best-in-class management team with strong corporate governance standards enhanced by ADP partnership Group Directors on GMR Board Key management and Board of Directors Srinivas Prabhakararao Antoine Crombez1 Bommidala Indana Executive Director GM Rao Chairman, Energy CEO – Airports and Deputy CEO, G
Slide 33: Commitment to future sustainability through ESG framework
GMR Groups’ strong commitment to future sustainability through ESG framework Environment People 4,230 employees were provided training in the DIAL to achieve “Level 4+, Transition” ACC (1) in 2020 in Asia Learning and FY 2020-21 Pacific region and GHIAL to achieve “Level 3+, Neutrality” ACC Deve
Slide 34: Why to invest?
Why to invest? World’s 2nd largest private airport operator and integrated airports platform with wide ranging 01 capabilities and Pan Asian footprint 02 Opportunity to participate in the one of the fastest growing aviation markets in the world 03 Portfolio of world class airport assets acting as re
Slide 35: Thank You
Humility | Entrepreneurship | Teamwork afi Relat s e i i i ect for individual
Slide 36: Covid timeline in Indian aviation
Covid timeline in Indian aviation Apr- Jun 2020 Jul-Sep 2020 Oct’20–Mar’21 Apr- May 2021 Jun-Dec 2021 Jan 2022 Complete Restricted Good Covid 2nd Road to strong Covid 3rd Wave Lockdown Operations Recovery Wave Impact Recovery but imact waning fast Domestic flight Ban extended on Int’l Bubble
Slide 37: Resilience in airport traffic with minimal impact from 3rd wave
Resilience in airports traffic clearly visible with minimalistic impact from the latest 3rd wave on air travel in India… Domestic Air Traffic Volume (Feb’20 – Jan’22) 500 Average Daily Departing Passengers (‘000) A B National Daily traffic 415 peaked before Lockdown 400 the second wave 345 357 300 2
Slide 38: Signs of momentum in domestic pax recovery
…with clear signs of gaining momentum especially with domestic pax recovery to pre-Covid levels and stable international pax as well Delhi Airport Pax Hyderabad Airport Pax 120% 100% 86% 91% 95% 96% 100% 80% 68% 65% 60% 62% 80% 67% 65% 52% 60% 60% 45% 57% 52% 41% 60% 35% 19% 47% 48% 30% 36% 56% 15%
Slide 39: Relaxation in Covid related travel restrictions across India
Relaxation in Covid related travel restrictions across India given 100% vaccination of adults to be achieved by June 2022 2020 2021 2022 One 3rd of ½ Adult Lockdown & Suspension All major restrictions lifted Start of population population of air traffic on 1st Sept 2020 vaccinations vaccinated vacci
Slide 40: Smart city IT solutions augment operations and profitability
Smart city IT solutions augment operations and boost underlying profitability Drivers Smart digital enablers 1 Direct benefits Passenger Experience Centralized monitoring Improve Passenger Experience and optimization Efficiencies & Savings Sensor Networks, Data Integration, Revenue Opportunities
Slide 41: GAL pioneer in adopting cutting edge IT / digital solutions
GAL has been a pioneer in adopting cutting edge IT / digital solutions and is in the league of renowned global airport operators Initiatives at GAL Measures Covid -19 Touchless CUSS, Virtual Helpdesk, Social Distancing CCTV Analytics, Thermal Imaging, UV Based Baggage Disinfectants, Thermal Imagin
Slide 42: Evolution of the airport PPP model in India
Evolution of the highly successful airport PPP model in India Discussions between Bangalore and Delhi and Mumbai AERA (Airports stakeholders on Hyderabad airports’ airports’ Economic Regulatory concessions concessions various privatization Authority of India) awarded on single awarded on hybrid mode
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