50 slides from Mep Infrastructure Developers's investor presentation, February 2016
Slide 1: MEP Infrastructure Developers Limited Corporate Presentation
MEP INFRASTRUCTURE DEVELOPERS LIMITED Corporate Presentation February 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 third largest road network in the world India Road Network Share % after the US and China. National highways account for ~ 1.91% of the network. State highways account for ~ 2.93%, and Major District 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 68% 5,300 3,067 1,465 1,116 FY11 FY12 FY13 FY14 FY15 FY16E Projects of ~ 3,067 km were awarded by NHAI during FY15 (~ 700 km under BO
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 And BOT Formats Under The NHDP During 2005-15 (In Km) 6,400 5,058 3,065 3,360 2,364 1,608 1,390 1,145 1,244 1,116 643 703 345 89 221 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 EPC BOT • The trend t
Slide 15: Hybrid Annuity Model
Industry Overview: Hybrid Annuity Model New Hybrid Annuity Model To Be Introduced To Improve Private Participation % of NHAI Allocation NHAI planned to award road projects of ~ 5,300 km during FY16 through 3 execution models : 28% EPC 53% 2,800 km under EPC model. BOT 19% 1,000 km under BOT mode
Slide 16: 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 17: 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 18: 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 19: 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 20: Key Financing Sources
Industry Overview: Key Financing Sources Budgetary support and CRF: Budgetary support to MoRTH has registered a CAGR of 13.4% between 2007-08 and 2014-15. The Central Government had allocated Rs352.38 billion(Central Plan Outlay) to the MoRTH under the Union Budget FY15. The allocations from CRF i
Slide 21: Company Overview
Company Overview
Slide 22: Company Overview: Brief Profile
Company Overview: Brief Profile Leading Player In Toll Collection & 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 cont
Slide 23: Company Overview: Key Milestones
Company Overview: Key Milestones Crossed Rs 10,000 mn of revenue in a single financial year Awarded a 3-year OMT (FY 12) for the first time contract by MSRDC for Rajiv Awarded the Phalodi Ramji toll Gandhi Sea Link in Mumbai Awarded Hyderabad-Bangalore OMT contract for 9 years collection con
Slide 24: 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 BOT Total Toll Toll Maharashtra 2 3 1 1 7 Tamil Nadu 2 1 1 - 4 Delhi Rajasthan - - 2* - 2 Uttar Pradesh Rajasthan Gujarat - - 1
Slide 25: 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 26: Shareholding Structure
Company Overview: Shareholding Structure Share Price Performance Market Data As on 29.01.2016 (BSE) Share Price Rs 63.0 Share Price Rs 43.0 Market Capitalization (Rs Mn) 6,990 As on 1 Jul 2015 (BSE) As on 29 Jan 2016 (BSE) 70 60 No. of shares outstanding (Mn) 162.6 50 40 30 Face Value (Rs.) 10.0 20
Slide 27: 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 28: 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 29: Sustainable Competitive Advantages
Sustainable Competitive Advantages
Slide 30: 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 31: 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 32: 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 33: Understanding Our Business Model
Understanding Our Business Model
Slide 34: Asset Light Business Model
Understanding Our Business Model: Asset Light Business Model Asset Light Business Model Focussing On Pure Toll Collection And OMT Projects Development / Traffic Business Capital Financing Concession Maintenance Political Construction Risk Revenues Model Employed Risk Period Responsibility Risk Risk
Slide 35: Balanced Mix Of OMT And Toll Collection Projects
Understanding Our Business Model: Balanced Mix Of OMT And Toll Collection 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 initial
Slide 36: Consolidated Financials
Consolidated Financials
Slide 37: 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 6.8% 1,482 1,443 1,555 Q3 FY16 Q2 FY16 Q1 FY16 (9M) FY16 FY15 Q3 FY16 Q2 FY16 Q1 FY1
Slide 38: 3Q & 9M FY16 Revenue Analysis
3Q & 9M FY16 Revenue Analysis REVENUE BREAKUP Q3 FY16 Q2 FY16 28.7% 34.4% 45.2% 47.1% 24.2% 20.4% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection (9M) FY16 FY15 31.7% 46.2% 43.3% 41.5% 22.1% 15.2% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection 38
Slide 39: 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 20,088 14,839 Other Income 565 220 433 325 282 Operating and Maintaining Expenses 6,679 8,332 8,015 14,570 9,820 Employee Expenses 413 525 499 761 575 Other Expenses 219 294 36
Slide 40: 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 41: Annexure
Annexure 41
Slide 42: Corporate Structure
Company Overview: Corporate Structure MEP Infrastructure Developers Limited OMT Projects Long Term Toll Collection Projects BOT Projects Other Subsidiaries / Associate MEP HS - MEP Highway Solutions Private MEP Solapur - MEP IRDP Solapur Toll Road RTPL - Rideema Toll MIPL - MEP Infrastructure Privat
Slide 43: 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 44: 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) Delhi Entry Points Located in Solapur 18 lane toll plaza at Located on Satara – Previously known as Connecting Mumbai district Vidyasagar Setu, lin
Slide 45: 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 September 30, 2015 to September 29, 2016 Rs 740.7 mn to be paid in Weekly Instalment of Rs. 14.20 mn 2 Bankapur Karnataka NHAI January 3, 2015 to Jan
Slide 46: India Infrastructure Sector
Industry Overview: India Infrastructure Sector Road Sector In India At 4.86 million km, India has the third largest road network in the world after the US Investments in National Highways and China. National highways account for ~ 1.91% of the network. State highways account for ~ 295 2.93%, and
Slide 47: 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 48: 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 49: 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 50: 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 50