33 slides from Mep Infrastructure Developers's investor presentation, October 2016
Slide 1: Corporate Presentation October 2016
CORPORATE PRESENTATION OCTOBER 2016 1
Slide 2: Executive Summary
Executive Header Summary Goes Here • MEP Infrastructure Developers Ltd (MEP), is one of the leading players for OMT and Toll Collection projects in India. Company CompanyOverview Overview • Founded in 2002 by current promoters Mr Dattatray Mhaiskar and Jayant Mhaiskar, MEP commenced operations with
Slide 3: Company Overview
Header Goes Here COMPANY OVERVIEW COMPANY OVERVIEW 3
Slide 4: Company Profile
Header CompanyGoes Here Profile Leading and Diversified Player Revenue Mix – FY16 Since commencing operations in 2002 from a pure toll collection business model, MEP has evolved into a diversified Infrastructure company having operations in OMT and Toll collections and its recent foray into constr
Slide 5: Key Milestones
Header Goes Here Key Milestones Crossed INR 10,000 mn of revenue MEPIDL (in JV with Sanjose India) 2016 in a single financial year (FY 12) for forayed into road development with Awarded the Mumbai Entry the first time Hybrid Annuity model projects Points Projects on OMT basis for 16 years with
Slide 6: Diversified Project Portfolio With Pan-India Presence
Header Goes Diversified Here 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 1 4 1 8 Tamil Nadu - 1 5 - - 6 Rajasthan - - 3 - - 3 Uttar Pradesh Gujarat - - 1 2 - 3 Raj
Slide 7: Corporate Structure
Header Goes Corporate Here Structure MEP Infrastructure Developers Limited Long Term OMT Projects HAM Projects BOT Projects Other Subsidiaries / Associate Toll Collection Projects MIPL - MEP Infrastructure Arawali Kante MEP HS - MEP Highway Solutions Private RTPL - Rideema Toll Private Limited (99.9
Slide 8: Experienced Board Of Directors and Promoters
Header GoesPromoters Experienced Here and Board Of Directors Name & Designation Experience Dattatray P. Mhaiskar Founding Director and Promoter of the Company Chairman, Non Independent Holds a Diploma in Civil Engineering from Sir Cursow Wadia Institute of Electrical Technology, Pune and Non Exe
Slide 9: Key Management Team
Header Goes HereTeam 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 Builders Private Limited Sameer Apte Ba
Slide 10: Business Overview
Header Goes Here BUSINESS OVERVIEW 10
Slide 11: Understanding The Business Model
Understanding Header The Business Model Goes Here Risks borne by Concessionaire Types Description Revenue Stream Concession Period Award Criteria Development Financing Traffic ~ 1 year Private party collects toll during the (Short-term) Highest revenue Tolling concession period and pays the Toll ~ 1
Slide 12: Short Term (ST) Toll Collection Projects
Short Term Header (ST) Here Goes Toll Collection Projects Short Term Toll projects do not require any initial capex and bear no maintenance responsibility. The concessionaire are not required to provide any upfront payments to the authorities, rather only a performance security (funded / non-funded)
Slide 13: Long Term (LT) Toll Collection Projects
Header Goes Long Term Here (LT) Toll Collection Projects Long Term Toll projects do not require any initial capex and have no maintenance responsibility. The concessionaire is not required to provide Upfront payment to Authority under NHAI, although upfront payments to authorities are required for c
Slide 14: Operate-Maintain-Toll (OMT) Projects
Header Goes Here Operate-Maintain-Toll(OMT) Projects OMT projects do not require any initial capex but have a maintenance responsibility. The concessionaire is not required to provide Upfront payment to Authority(NHAI). Payment to Authority is an operational expense and needs to be paid from toll ca
Slide 15: Hybrid Annuity Model (HAM) Projects
Header Goes Model Hybrid Annuity Here (HAM) HAM projects require initial capex wherein 60% of project cost is financed by the developer and is to be recovered as bi-annual payments from the authorities over 15 years. Out of total project cost, the balance 40% is invested by the government during t
Slide 16: Our Project Timelines
Header Goes Our Project Here Timelines Long Term Toll Operate Maintain Toll Kalyan Shilphata Mumbai Entry Points Rajiv Gandhi Salai Rajiv Gandhi Sea link Vidyasagar Setu Hyderabad- Banglore Short Term Toll Hybrid Annuity Model Sau Kala Construction Period Annuity Period Nanguneri Salaipudhur Etturva
Slide 17: Competitive Advantage
Header Goes Here COMPETITIVE ADVANTAGE 17
Slide 18: Leadership Position In OMT And Toll Collection In India
Header Goes Leadership HereIn OMT And Toll Collection In India Position Leading Player In The OMT No. of Projects Awarded Lane (Km) Estimated Project Cost (INR mn) 5 5 2,550 2,400 4150 2,200 3,400 3,000 1,600 2,600 2 2 1,050 1,850 1 MEPIDL PATH DRAIPL SMS PI MEPIDL PATH DRAIPL SMS PI MEPIDL PATH DRA
Slide 19: Integrated Structure with in-house capabilities
Header Goes Integrated Here with in-house capabilities Structure 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 amount of toll to
Slide 20: Use Of Advanced Technology For Toll Collection
Header Goes Here 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 through smart cards or R
Slide 21: Strategic Relationships
Header StrategicGoes Here Relationships Collaboration with Sanjose India Marquee Projects by Sanjose LOUVRE ABU DHABI MUSEUM SANJOSE is a diversified global company present in over twenty countries around Europe, America, Asia and Africa. Its main business lines are: Construction, Energy and Envir
Slide 22: Industry Overview
Header Goes Here INDUSTRY OVERVIEW 22
Slide 23: Indian Road Sector On Revival Path
Header Goes Indian Road HereOn Revival Path Sector The total length of the National highways is expected to cross ~200,000 km in next 5 years. Significant Pickup In New Projects a) This expansion will include ~ 25,000 km under Bharat Mala Project and declaration of ~75,000 km of State highways as Na
Slide 24: Evolving Trend in Project Awards - EPC vs BOT vs HAM
Header Evolving Goes Here Trend in Project Awards - EPC vs BOT vs HAM Length Awarded On EPC, BOT and Hybrid - Annuity Formats During 2005-06 to 2015-16 (In Km) 6,400 5,058 3,065 3,360 3,149 2,364 1,608 1,390 1,145 1,116 1,244 643 703 873 345 89 221 377 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY
Slide 25: Outlook On OMT, TOLL, HAM & TOT Models
Header Outlook Goes Here On OMT, TOLL, HAM & TOT Models According to CRISIL estimates, the total stretch under OMT model for NHAI and key states (combined) is expected to double from ~ 5,600 km in 2014 -15 to ~ 11,600 km by 2018-19. OMT The total number of OMT projects is expected to increase fr
Slide 26: Infrastructure Investment Trust (InvIT)
Header GoesInvestment Infrastructure Here Trust (InvIT) Key Highlights InvIT Framework Sponsor Institutional Investors Not more than 3 The Sponsor is required to hold a minimum of 25% stake in the InvIT. SEBI has proposed to relax the minimum Sponsor Listing is Mandatory Asset Management holding t
Slide 27: Financial Overview
Header Goes Here FINANCIAL OVERVIEW 27
Slide 28: Quarterly P&L Statement (as per Ind-AS)
Header QuarterlyGoes Here P&L Statement (as per Ind-AS) In INR Mn Particulars Q1 FY17 Q1 FY16 YoY% Total Revenues from Operations 4,611 4,672 (1.3)% Other Income 197 181 8.8% Operating and Maintaining Expenses 1,582 2,936 (46.1)% Employee Expenses 195 173 12.7% Other Expenses 92 83 10.8% Depreciatio
Slide 29: Consolidated P&L Statement
Header GoesP&L Consolidated Here Statement In INR Mn Particulars FY12 FY13 FY14 FY15 FY16 Revenue from Operations 10,801 12,800 11,979 20,088 20,068 Other Income 565 220 433 325 407 Operating and Maintaining Expenses 6,679 8,332 8,015 14,570 13,333 Employee Expenses 413 525 499 761 775 Other Expense
Slide 30: Consolidated Balance Sheet
Header GoesBalance Consolidated Here Sheet In INR Mn Particulars in INR Mn FY12 FY13 FY14 FY15 FY16 Particulars in INR Mn FY12 FY13 FY14 FY15 FY16 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 1,000 1,000 1,000 1,115 1,626 Fixed Assets 22,074 21,513 23,695 21,722
Slide 31: FY16 Results Highlights
Header Goes FY16 Results Here Highlights REVENUE FROM OPERATIONS (INR Mn) EBITDA (INR Mn) & EBITDA MARGIN 25,000 7,000 37.5% 40.0% 20,088 20,068 6,000 30.2% 5,955 35.0% 20,000 29.5% 5,000 4,761 30.0% 15,000 4,055 29.7% 25.0% 12,800 4,000 3,869 11,979 3,538 23.7% 10,801 20.0% 10,000 3,000 15.0% 2,000
Slide 32: Shareholding Structure
Header Goes Shareholding Here Structure Share Price Performance As on 30.09.2016 Market Data (BSE) MEP Infra SENSEX 20% Market Capitalization (INR Mn) 6,617 10% No. of shares outstanding (Mn) 162.6 0% -10% Face Value (INR) 10.0 -20% 52 week High-Low (INR) 59.7 – 34.2 -30% -40% 1 Year Daily Average T
Slide 33: Disclaimer
Header DisclaimerGoes Here MEP infrastructure Developers Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such inf