Slide 1: MEP Infrastructure Developers Limited Corporate Presentation
MEP INFRASTRUCTURE DEVELOPERS LIMITED Corporate Presentation April 2016
Slide 2: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by MEP Infrastructure Developers Limited (“MEPIDL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of oper
Slide 3: Table Of Contents
Table Of Contents Industry Overview Sustainable Competitive Advantages India Road Network – Size And Growth Strong Execution Capabilities with Proven Track Policy and Regulatory Framework Record Indian Road Sector on Revival Path – Key Growth Integrated Structure with In-house Capabili
Slide 4: Industry Overview
Industry Overview
Slide 5: India Road Network – Size And Growth
Industry Overview: India Road Network – Size And Growth At 4.86 million km, India has the second largest road network in the India Road Network Share % world. National highways account for ~ 1.91% of the network. State highways account for ~ 2.93%, and Major District Roads (MDRs) and other roads
Slide 6: Policy And Regulatory Framework – Central Level
Industry Overview: Policy And Regulatory Framework – Central Level Development of roads falls under the concurrent list with legislative powers at both the Central and State Government levels. This has resulted in a highly-fragmented administrative structure. The Ministry of Road Transport and Hig
Slide 7: Policy And Regulatory Framework – State Level
Industry Overview: Policy And Regulatory Framework – State Level State road development is undertaken by respective Public Works Department or other dedicated agencies like road development authorities, highways corporation, etc. Most of the Indian states have formulated road development policie
Slide 8: Indian Road Sector On Revival Path – Key Growth Drivers
Industry Overview: Indian Road Sector On Revival Path – Key Growth Drivers Significant Pickup In New Projects Highway Projects Awarded by NHAI (km) 6,400 5,058 CAGR 45% 3,432 3,067 1,465 1,116 FY11 FY12 FY13 FY14 FY15 Feb-16 The total length of the National highways is expected to cross ~200,000 k
Slide 9: Indian Road Sector On Revival Path – Key Growth Drivers
Industry Overview: Indian Road Sector On Revival Path – Key Growth Drivers Ordinance to amend the New Land Acquisition Act. Government’s Committee on easing environmental clearance norms and introduction of an online portal for environment and forest clearance. Central Government introduces ne
Slide 10: Indian Road Sector On Revival Path – Key Policy Measures
Industry Overview: Indian Road Sector On Revival Path – Key Policy Measures Key Policy Measures By New Government Easing of the land acquisition process particularly for PPP projects. However, the developers would be required to pay a higher amount for acquiring land. NHAI will not award any road
Slide 11: Indian Road Sector On Revival Path – Key Policy Measures
Industry Overview: Indian Road Sector On Revival Path – Key Policy Measures Key Policy Measures By New Government RFID-based Toll Collection The implementation of ETC (Electronic Toll Collection) method of tolling to enable faster transit at toll plazas System and seamless travel across tolled roads
Slide 12: Key Features Of Existing PPP And EPC Contracts
Industry Overview: Key Features Of Existing PPP And EPC Contracts As per the MCA, roles of the implementing agencies, concessionaires and contractors have been clearly defined. The concession period varies with the kind of contracts and toll rates are fixed as per the Tolling Policy – NHAI or St
Slide 13: PPP Models In The Road Sector
Industry Overview: PPP Models In The Road Sector Private Public Partnership (PPP) Framework Government has recognized the need to engage with the private sector to achieve the following objectives: Harness private sector efficiencies in asset creation, maintenance and service delivery Provide fo
Slide 14: Trend In Project Awarding - EPC Vs BOT Model
Industry Overview: Trend In Project Awarding - EPC Vs BOT Model Length Awarded On EPC,BOT and Hybrid-Annuity Formats During 2005-06 to 2015-16 (In Km) 6,400 5,058 3,360 3,065 2,364 2,467 1,608 1,390 1,145 1,116 1,244 643 703 873 345 89 221 92 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Feb-16
Slide 15: Hybrid Annuity Model
Industry Overview: Hybrid Annuity Model New Hybrid Annuity Model To Be Introduced To Improve Private Participation With focus on assured execution of road projects, over 80% of the future projects are proposed to be awarded under EPC and Hybrid Annuity Model (HAM) routes. For FY17, MoRTH and NHAI ha
Slide 16: Hybrid Annuity Model - MEPIDL’s Recent Project Wins
Industry Overview: Hybrid Annuity Model - MEPIDL’s Recent Project Wins MEPIDL recently won 3 road projects under Hybrid Annuity Model in March 2016 Project Asset Arawali Kante Nagpur Package I Nagpur Package II Four-laning standalone Ring Road / Four-laning standalone Ring Road / Four-laning of NH66
Slide 17: Toll-Operate-Transfer Model
Industry Overview: Toll-Operate-Transfer Model New Toll-Operate-Transfer (TOT) Model To Be Introduced For Efficient Monetization Of Existing Toll Roads TOT Model NHAI or a Concessionaire has already Key Benefits financed the construction of the project Efficient operations and To award existing
Slide 18: OMT Model
Industry Overview: OMT Model Evolution Of The OMT Concept 2009 onwards Since 2012 • Bids invited for tolling and •Union Government O&M of national highways •OMT concept introduced for approved the OMT policy •Increased focus on OMT; separately. stretches developed under and MCA for OMT projects. ent
Slide 19: Outlook On OMT Model
Industry Overview: Outlook On OMT Model Outlook For The OMT Model Market Size (Km) on bids invited basis As per CRISIL, a total of ~15,150 km of OMT opportunity is expected to come up. Of this, about 5,150 km 10,000 km 5,150 km will come from contracts already awarded under the NHDP, while 10,000
Slide 20: Outlook On Toll Model
Industry Overview: Outlook On Toll Model Outlook For The Toll Collection Model Market Size (Km) on bids invited basis Market Opportunity (Rs bn) 16,900 km 12,150 km (285-290 projects) 81.7 (~ 222 projects) 1.8x 46.4 62.0 44% 1.4 x 53% 47% 56% 37.0 19.7 9.4 2013-14 2017-18 2013-14 2017-18 National Hi
Slide 21: Key Financing Sources
Industry Overview: Key Financing Sources The total investment in roads during FY17 is expected to be Rs 970 billion, which will include budgetary support of Rs 550 billion, Rs 150 billion through NHAI bonds and balance Rs 270 billion allocation under PMGSY (Pradhan Mantri Gram Sadak Yojana) from bot
Slide 22: Company Overview
Company Overview
Slide 23: Company Overview: Brief Profile
Company Overview: Brief Profile Leading Player In Toll Collection and OMT Projects MEPIDL is the leading player in OMT and Toll Collection in India (1). Commenced operations in 2002 - toll collection at the five Mumbai Entry Points for 8 years. Progressed into winning one of the largest OMT co
Slide 24: Company Overview: Key Milestones
Company Overview: Key Milestones Awarded the Phalodi MEPIDL (in JV with Sanjose 2016 Crossed Rs 10,000 mn of revenue in a India) forayed into road Ramji toll collection single financial year (FY 12) for the development with Hybrid contract in Rajasthan first time Annuity model projects by RIDC
Slide 25: Diversified Project Portfolio With Pan India Presence
Company Overview: Diversified Project Portfolio With Pan India Presence Current Portfolio Across Eight States In India Current Project Mix Long Short Location OMT Term Term HAM BOT Total Toll Toll Maharashtra 2 3 1 3 1 10 Tamil Nadu 2 1 1 - - 4 Rajasthan - - 1* - - 1 Uttar Pradesh Gujarat - - 1 - -
Slide 26: Leadership Position In OMT And Toll Collection In India
Company Overview: Leadership Position In OMT And Toll Collection In India Leading Player In The OMT No. of Projects Awarded Lane (Km) Estimated Project Cost (Rs mn) 3 3 2,174 2,187 3,403 3,017 1,603 1,580 2,590 2 2 2 930 217 430 MEPIDL PATH DRAIPL BVSR SMS MEPIDL PATH DRAIPL BVSR SMS MEPIDL PATH DRA
Slide 27: Shareholding Structure
Company Overview: Shareholding Structure Share Price Performance Market Data As on 31.03.2016 (BSE) Share Price Rs 63.0 Share Price Rs 38.0 As on 1 July 2015 (BSE) As on 31 Mar 2016 (BSE) Market Capitalization (Rs Mn) 6,350 70 60 50 No. of shares outstanding (Mn) 162.6 40 30 20 Face Value (Rs.) 10.0
Slide 28: Experienced Promoters And Management Team – Board Of Directors
Company Overview: Experienced Promoters And Management Team – Board Of Directors Name & Designation Experience Dattatray P. Mhaiskar Founding Director and Promoter of the Company Chairman, Non Holds a Diploma in Civil Engineering from Sir Cursow Wadia Institute of Electrical Technology, Pune Ind
Slide 29: Experienced Promoters And Management Team – Key Management
Company Overview: Experienced Promoters And Management Team – Key Management Name & Designation Experience Uttam Pawar Bachelor’s degree in Commerce from Shivaji University, Kolhapur with over 25 years of experience in tolling business Chief Tolling Officer Previously associated with Ideal Road
Slide 30: Sustainable Competitive Advantages
Sustainable Competitive Advantages
Slide 31: Strong Execution Capabilities With Proven Track Record
Sustainable Competitive Advantage: Strong Execution Capabilities With Proven Track Record Expertise And Experience In Project Management One of the first few companies focusing to operate on pure toll collection business model. Successful operational experience of over 13 years with a pan India
Slide 32: Integrated Structure With In-house Capabilities
Sustainable Competitive Advantage: Integrated Structure With In-house Capabilities In-house business development team prepares tendering documents for all the bids. Tendering Company’s ability to tender appropriately depends significantly on the assessment of the future traffic patterns and the
Slide 33: Use Of Advanced Technology For Toll Collection
Sustainable Competitive Advantage: Use Of Advanced Technology For Toll Collection Use of Advanced Technology for Toll Collection leads to improved Operational Efficiency And Transparency ETC System: Electronic Toll Collection (ETC) systems are based on prepaid mode of toll collection either throug
Slide 34: Understanding Our Business Model
Understanding Our Business Model
Slide 35: Asset Light Business Model
Understanding Our Business Model: Asset Light Business Model Development / Traffic Business Capital Financing Concession Maintenance Construction Risk Revenues/Payments from authority Model Employed Risk Period Responsibility Risk Toll Revenues ~ 9+ years Traffic Growth - 5-8% YoY OMT Minimal No Yes
Slide 36: Balanced Mix Of OMT, Toll Collection and HAM Projects
Understanding Our Business Model: Balanced Mix Of OMT, Toll Collection and HAM Projects Well-balanced Mix Of Short Term & Long Term Projects Is Essential For Long Term Sustenance Lifecycle of Toll Collection Projects Short Term Projects Long Term Projects Pure toll collection project is awarded in
Slide 37: Consolidated Financials
Consolidated Financials
Slide 38: Q3 & 9M FY16 Results Highlights
Q3 & 9M FY16 Results Highlights In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA MARGIN 20,088 32.0% 29.9% 30.2% 28.7% Consistent Revenue 23.7% Accretion 14,839 Healthy Operating 4,480 4,761 Margin 5,157 4,824 4,858 6.9% 1,482 1,443 1,555 Q3 FY16 Q2 FY16 Q1 FY16 (9M) FY16 FY15 Q3 FY16 Q2 FY16 Q1 FY1
Slide 39: Revenue Analysis
Revenue Analysis REVENUE BREAKUP Q2FY16 FY15 28.7% 41.5% 47.1% 43.3% 24.2% 15.2% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection (9M) FY16 (Q3) FY16 31.7% 34.4% 45.2% 46.2% 22.1% 20.4% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection 39
Slide 40: Consolidated P&L Statement
Consolidated P&L Statement Particulars in Rs. Mn FY12 FY13 FY14 FY15 (9M) FY16 Revenue from Operations 10,801 12,800 11,979 19,843 14,839 Other Income 565 220 433 570 282 Operating and Maintaining Expenses 6,679 8,332 8,015 14,570 9,820 Employee Expenses 413 525 499 716 575 Other Expenses 219 294 36
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars in Rs. Mn FY12 FY13 FY14 FY15 (H1) FY16 Equities & Liabilities Shareholder's Funds Share Capital 1,000 1,000 1,000 1,115 1,626 Reserves & Surplus -379 -1,308 -1,878 -3,379 -727 Total Shareholder's Funds 621 -308 -878 -2,264 899 Share Application Money 453 453 -
Slide 42: Annexure
Annexure 42
Slide 43: Corporate Structure
Company Overview: Corporate Structure MEP Infrastructure Developers Limited Long Term OMT Projects HAM Projects BOT Projects Other Subsidiaries / Associate Toll Collection Projects RTPL - Rideema MEP HS - MEP Highway Solutions MIPL - MEP Infrastructure MEP Solapur - MEP IRDP Solapur Arawali Kante To
Slide 44: Mix Of OMT And Toll Collection Projects – OMT Projects
Mix Of OMT And Toll Collection Projects – OMT Projects Madurai – Kanyakumari Hyderabad - Bangalore Chennai Bypass Rajiv Gandhi Sea link Mumbai Entry Points Four lane carriage way Four lane carriage way Six lane carriageway that Links Bandra in the Five entry points located on located on NH-7, which
Slide 45: Mix Of OMT And Toll Collection Projects – Long Term Toll Collection
Mix Of OMT And Toll Collection Projects – Long Term Toll Collection IRDP Solapur Vidyasagar Setu Kini Tasawade Rajiv Gandhi Salai(1) Kalyan Shilphata(1) Located in Solapur district 18 lane toll plaza at Located on Satara – Previously known as the Connecting Mumbai Pune Vidyasagar Setu, links Howrah
Slide 46: Mix Of OMT And Toll Collection Projects – Short Term Toll Collection
Mix Of OMT And Toll Collection Projects – Short Term Toll Collection Sr. Toll Plaza State Client Term Payment to Authority No 1 Surajbari Gujarat NHAI October 12, 2015 to October 11, 2016 Rs 740.7 mn to be paid in Weekly Instalment of Rs. 14.20 mn Rs 628.0 mn to be paid in weekly instalments of Rs 1
Slide 47: Hybrid Annuity Projects
Hybrid Annuity Projects Project Asset Arawali Kante Nagpur Package I Nagpur Package II Four-laning standalone Ring Road / Four-laning standalone Ring Road / Four-laning of NH66 (km 241.3 – Scope of Project Bypass (km 0.5- 34.0) for Nagpur city Bypass (km 34.5- 62.035) for Nagpur 281.3) under NHDP Ph
Slide 48: India Infrastructure Sector
Industry Overview: India Infrastructure Sector Road Sector In India At 4.86 million km, India has the second largest road network in the world after the Investments in National Highways US and China. National highways account for ~ 1.91% of the network. State highways account for ~ 295 2.93%, an
Slide 49: Growth Drivers For Investment In Roads And Highways
Industry Overview: Growth Drivers For Investment In Roads And Highways Moderate Growth In GDP And Freight Demand Road Freight Traffic Gaining Preference 2,500 16,000 Proportion of Freight Traffic Across Modes of Transport 14,000 2,000 6% 3% 12,000 5% 4% 1,500 10,000 8,000 1,000 29% FY14E 6,000 FY09E
Slide 50: OMT And Toll Collection Model
Industry Overview: OMT And Toll Collection Model OMT - Overview OMT Project Activity OMT model was introduced by NHAI in 2009 for select existing and near completion four-lane National Highways It provides consistent revenues to NHAI and Just-in-Time maintenance of the project Under NHAI (2009-1
Slide 51: Glossary
Glossary BRO Borders Road Organisation CCEA Cabinet Committee on Economic Affairs EPC Engineering, Procurement, Construction ETC Electronic Toll Collection GQ Golden Quadrilateral HRBC Hooghly River Bridge Commissioners IFC International Finance Corporation LBS Lal Bahadur Shastri Marg LT Long term
Slide 52: Thank You
For Further Queries: Thank You Mr. Murzash Manekshana Executive Director Address :A-412,boomerang , Chandivali Farm Road , Near Chandivali Studio ,Andheri ( E ), Mumbai-400072 ,India . Email : mmanekshana@mepinfra.com T +91 22 61205000/01 52