Irb Infrastructure Developers Limited · NSE:IRB

Irb Infrastructure Developers — Q2 FY2022 Earnings Presentation

58 slides from Irb Infrastructure Developers's earnings presentation, September 2021

1. Slide 1: Investor Presentation Q2FY2022

   Investor Presentation Q2FY2022

2. Slide 2: Safe Harbour

   Safe Harbour 2 This presentation has been prepared by IRB Infrastructure Developers Limited (the “Company”) solely for your information and for your use and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or

3. Slide 3: Contents

   Contents 3 Update 4 Strong Recovery across Projects 5 Q2FY22 Results 20 Segmental Performance 25 Offshore Bond Issue 33 Private InvIT – IRB Infrastructure Trust 39 Corporate Overview 42

4. Slide 4: Strong growth in Q2FY22 vs Q2FY21 in Collections and EPC execution

   4 Strong growth in Q2FY22 vs Q2FY21 in Collections and EPC execution • Impact of Wave - II was much lower as compared • CG BOT Project achieved COD in August 2021 and to Wave – I on traffic and Mumbai Pune reports got tariff revision of ~58%. ~39% growth for Q2FY22 as compared to Q2FY21 in average d

5. Slide 5: Strong Recovery across Projects

   5 Strong Recovery across Projects

6. Slide 6: Strong Recovery Across Projects – Mumbai Pune Project

   Strong Recovery Across Projects – IRB Projects 6 Mumbai Pune Project Total for the Quarter 3500 41.0 33.7 33.9 3049 36.0 31.8 Per day Collection 29.9 31.0 36.3 36.3 37.0 3000 26.1 34.2 34.2 (INR Mn) 26.0 22.3 30.9 28.3 21.0 23.8 16.0 20.4 19.5 2500 11.0 14.7 6.0 2191 9.1 2000 INR Mn 1,200 1,124 1,12

7. Slide 7: Strong Recovery Across Projects – Ahmedabad Vadodara Project

   Strong Recovery Across Projects – IRB Projects 7 Ahmedabad Vadodara Project Total for the Quarter 1400 17.0 1260 13.7 14.0 13.4 15.0 12.8 Per day Collection 13.0 11.8 14.7 14.9 1200 13.8 14.2 14.4 13.8 (INR Mn) 10.0 11.0 12.9 1080 9.0 10.7 11.1 11.3 7.0 1000 5.0 7.2 3.0 4.2 INR Mn 800 500 456 423 43

8. Slide 8: Strong Recovery Across Projects – IRB All Projects

   Strong Recovery Across Projects – IRB Projects 8 All Projects# Total for the Quarter 5000 60.0 48.8 48.4 46.5 4500 4406 Per day Collection 50.0 54.5 43.7 53.6 53.3 38.7 50.8 49.1 (INR Mn) 40.0 33.0 47.2 43.4 30.0 37.1 4000 32.7 32.4 3455 20.0 23.1 3500 10.0 14.1 3000 INR Mn 1,800 1,663 1,653 1,600 1

9. Slide 9: Private InvIT Projects – Kaithal RJ Border

   Strong Recovery Across Projects – Private InvIT Projects 9 Kaithal RJ Border Project Total for the Quarter 300 4.0 253 Per day Collection 3.0 3.4 3.4 3.4 250 (INR Mn) 3.0 2.6 2.7 2.0 2.6 2.0 1.5 1.0 200 INR Mn 120 104 150 102 100 90 83 86 77 80 Total Collection 80 63 100 (INR Mn) 60 40 16 50 20 0 0

10. Slide 10: Private InvIT Projects – Yedeshi Aurangabad

    Strong Recovery Across Projects – Private InvIT Projects 10 Yedeshi Aurangabad Project# Total for the Quarter 400 375 6.0 5.0 4.2 4.4 350 Per day Collection 4.1 3.9 3.6 4.9 5.1 5.1 5.1 4.0 3.2 4.7 (INR Mn) 4.5 3.0 3.6 2.0 2.6 2.8 300 2.6 1.0 2.0 274 1.3 0.0 250 INR Mn 180 159 157 200 160 147 143 145

11. Slide 11: Private InvIT Projects – Solapur Yedeshi

    Strong Recovery Across Projects – Private InvIT Projects 11 Solapur Yedeshi Project Total for the Quarter 200 189 3.0 180 2.5 2.1 2.2 Per day Collection 2.0 1.9 2.0 2.6 2.5 2.6 2.0 2.4 2.3 1.5 (INR Mn) 2.2 158 1.5 1.9 160 1.7 1.0 1.5 1.5 1.2 0.5 0.8 140 0.0 120 INR Mn 90 79 80 100 80 73 73 72 65 67

12. Slide 12: Private InvIT Projects – Agra Etawah

    Strong Recovery Across Projects – Private InvIT Projects 12 Agra Etawah Project# Total for the Quarter 500 6.0 5.0 448 4.9 4.8 4.8 4.8 450 5.0 Per day Collection 3.8 5.1 5.3 5.2 4.0 4.6 (INR Mn) 3.0 4.0 400 3.4 2.0 2.7 2.9 2.6 2.6 1.0 1.9 350 0.0 1.0 300 INR Mn 180 162 246 157 250 160 148 145 147 15

13. Slide 13: Private InvIT Projects – Hapur Moradabad

    Strong Recovery Across Projects – Private InvIT Projects 13 Hapur Moradabad Project Total for the Quarter 400 5.0 3.7 3.7 3.6 3.8 3.5 350 Per day Collection 4.0 4.5 338 4.4 4.3 4.3 4.1 322 2.5 3.8 (INR Mn) 3.0 3.7 3.4 3.3 3.4 2.0 2.2 300 1.0 1.1 0.0 250 INR Mn 160 200 136 135 133 140 128 116 115110

14. Slide 14: Private InvIT Projects – Udaipur Shamlaji

    Strong Recovery Across Projects – Private InvIT Projects 14 Udaipur Shamlaji Project# Total for the Quarter 600 7.0 5.8 5.8 5.7 531 6.0 5.1 Per day Collection 5.0 500 (INR Mn) 4.0 3.3 2.5 4.3 3.0 3.9 3.8 3.8 3.9 4.0 3.4 3.2 3.2 2.0 3.0 1.0 1.9 0.0 1.0 400 INR Mn 301 200 181 180 300 180 170 160 153 1

15. Slide 15: Private InvIT Projects – Chittorgarh Gulabpura

    Strong Recovery Across Projects – Private InvIT Projects 15 Chittorgarh Gulabpura Project # Total for the Quarter 600 7.0 6.9 5.9 6.0 522 Per day Collection 5.0 4.3 3.9 3.9 500 (INR Mn) 4.0 2.9 4.7 4.3 4.6 4.3 4.4 4.6 4.0 4.2 3.0 3.8 3.9 2.0 2.7 1.0 1.6 0.0 400 372 250 INR Mn 207 300 200 182 Total C

16. Slide 16: Private InvIT Projects – Kishangarh Gulabpura

    Strong Recovery Across Projects – Private InvIT Projects 16 Kishangarh Gulabpura Project Total for the Quarter 300 4.0 2.9 2.9 260 2.7 Per day Collection 3.0 2.6 2.6 248 3.1 3.1 3.0 250 (INR Mn) 1.9 2.9 2.9 2.9 2.8 2.0 2.4 2.6 2.6 1.8 1.0 1.1 200 0.0 INR Mn 120 150 100 96 94 89 87 91 87 87 86 86 82

17. Slide 17: Private InvIT Projects – IRB West Coast

    Strong Recovery Across Projects – Private InvIT Projects 17 IRB West Coast Project# Total for the Quarter 200 3.0 188 2.5 2.2 2.2 2.1 Per day Collection 2.6 2.6 2.7 180 2.0 1.7 2.4 2.5 1.5 (INR Mn) 2.2 1.3 2.0 1.5 156 1.7 1.0 1.5 1.4 160 1.2 0.5 0.9 0.0 140 120 90 INR Mn 79 81 80 75 76 69 71 100 67

18. Slide 18: Private InvIT Projects – All Projects

    Strong Recovery Across Projects – Private InvIT Projects 18 All Projects Total for the Quarter 3000 2851 40.0 35.0 31.8 31.9 29.4 Per day Collection 30.0 26.6 27.1 34.0 31.5 32.6 32.1 2500 30.5 (INR Mn) 25.0 19.6 29.5 2331 27.7 20.0 23.7 23.8 24.5 15.0 16.8 10.0 5.0 10.2 2000 INR Mn 1,200 1,034 1500

19. Slide 19: Public InvIT Projects – All Projects

    Strong Recovery Across Projects – Public InvIT Projects 19 All Projects# Total for the Quarter 60.0 4500 4181 44.4 45.8 46.1 Per day Collection 50.0 40.5 39.7 51.4 48.5 48.2 4000 (INR Mn) 40.0 46.0 45.8 46.1 46.5 31.2 38.6 3718 30.0 36.5 36.8 20.0 27.5 3500 10.0 16.4 3000 1,439 INR Mn 1,600 1,504 1,

20. Slide 20: Q2FY22 Results

    20 Q2FY22 Results

21. Slide 21: Consolidated Financial Results (YoY)

    Consolidated Financial Results 21 Amount in Rs Mn Segment Total All Segments Construction Segment BOT Segment Particulars Q2FY22 Q2FY21 %YoY Q2FY22 Q2FY21 %YoY Q2FY22 Q2FY21 %YoY Revenue 14,652.42 11,233.25 30.4% 10,245.97 7,590.94 35.0% 4,406.45 3,642.30 21.0% Distribution from INVIT 111.25 139.06

22. Slide 22: Consolidated Financial Results (QoQ)

    Consolidated Financial Results 22 Amount in Rs Mn Segment Total All Segments Construction Segment BOT Segment Particulars Q2FY22 Q1FY22 %QoQ Q2FY22 Q1FY22 %QoQ Q2FY22 Q1FY22 %QoQ Revenue 14,652.42 16,257.22 -9.9% 10,245.97 12,516.52 -18.1% 4,406.45 3,740.70 17.8% Distribution from INVIT 111.25 157.6

23. Slide 23: Consolidated Financial Results (H1)

    Consolidated Financial Results 23 Amount in Rs Mn Segment Total All Segments Construction Segment BOT Segment Particulars H1FY22* H1FY21 %YoY H1FY22 H1FY21 %YoY H1FY22 H1FY21 %YoY Revenue 30,909.64 21,456.24 44.1% 22,762.48 15,189.60 49.9% 8,147.15 6,266.64 30.0% Distribution from INVIT 268.84 231.7

24. Slide 24: Consolidated Financials: Strong Track Record

    Consolidated Financials: Strong Track Record 24 REVENUE (INR MN) EBITDA (INR MN) 69,026 70,472 31,329 31,664 58,628 54,875 28,480 27,016 11,688 15,165 6,005 7,608 FY 2018 FY 2019 FY 2020* FY 2021* Q2FY21 Q2FY22 FY 2018 FY 2019 FY 2020* FY 2021* Q2FY21 Q2FY22 NETWORTH (INR MN) NET DEBT & NET DEBT TO

25. Slide 25: Segmental Performance

    25 Segmental Performance

26. Slide 26: Overview of EPC Order Book

    Overview of EPC Order Book 26 INR 131,616 Mn Robust Increase in Construction Revenue 2021 38,226 O&M in BOT / TOT Projects 2009 5,670 65,330 EPC/ Construction in Strong growth in Construction EBITDA Ongoing BOT/ HAM Projects 2021 11,943 66,286 2009 1,013 Order book Composition as on Sept 30, 2021 •

27. Slide 27: BOT / HAM Portfolio Summary

    BOT / HAM Portfolio Summary 27 Project Cost Sr. No. Name of BOT Project Client State Concession Period Toll Start Date ( INR Mn) 1. Ahmedabad Vadodara NHAI Gujarat 48,800 25 Years January 1, 2013 3 BOT Projects 2. Pune – Nashik MoRTH Maharashtra 737 18 Years September 25, 2003 3. Palsit – Dankuni NH

28. Slide 28: BOT Toll Revenue Comparative – IRB Projects

    BOT Toll Revenue Comparative – IRB Projects Amount in INR Mn 28 ** Mum-Pune 1.0 Concession ended on 10th Aug 2019 and Mum-Pune 2.0 Concession started on 1st Mar 2020 Gross BOT Toll Collection presented * FY21 numbers reflecting impact of toll collection suspension due to Covid-19 across the country

29. Slide 29: BOT Toll Revenue Comparative – Private InvIT Projects

    BOT Toll Revenue Comparative – Private InvIT Projects Amount in INR Mn 29 * Toll Collection stopped from 25th Dec 2020 due to farmer’s agitation Gross BOT Toll Collection presented * FY21 numbers reflecting impact of toll collection suspension due to Covid-19 across the country and H1FY 22 numbers F

30. Slide 30: BOT Toll Revenue Comparative – Private InvIT Projects

    BOT Toll Revenue Comparative – Private InvIT Projects Amount in INR Mn 30 Gross BOT Toll Collection presented * FY21 numbers reflecting impact of toll collection suspension due to Covid-19 across the country and H1FY 22 numbers are impacted due to resurgence of 2nd wave of Covid-19 across the countr

31. Slide 31: BOT Toll Revenue Comparative – Private InvIT Projects

    BOT Toll Revenue Comparative – Private InvIT Projects Amount in INR Mn 31 Gross BOT Toll Collection presented * FY21 numbers reflecting impact of toll collection suspension due to Covid-19 across the country and H1FY22 FY 2017-18 FY 2018-19 FY 2019- 20 FY2020-21 FY2021-22 numbers are impacted due to

32. Slide 32: Going cashless – across IRB Group assets

    Going cashless – across IRB Group assets 32 100% 90% Government push 80% for Mandatory use 70% of FasTags RFID Collection 60% De-mon in 50% Nov 2016 40% 30% 20% 10% 0% Jul-17 Jul-18 Jul-19 Jul-20 Sep-21 Apr-17 Sep-17 Feb-18 Apr-18 Sep-18 Feb-19 Apr-19 Sep-19 Feb-20 Apr-20 Sep-20 Feb-21 Apr-21 Jun-17

33. Slide 33: Offshore Bond Issue

    33 Offshore Bond Issue

34. Slide 34: Covenant Structure

    Covenant Structure 34 IRB 100% 100% 100% Other Non- Core Business Segment Business Segment Investments Holdings I – Toll & HAM II – Construction (No active 51% IRB Infrastructure 49% operations) Mumbai Pune TOT Engg & Const / Trust GIC Affiliates O&M (Pvt InvIT – 9 BOTs) Ahd Vadodara BOT 16% Airport

35. Slide 35: Leverage summary

    Leverage summary 35 INR in Mn TTM ending TTM ending Particulars Sept 30, 2021 March 31, 2021 Business Segment I: Toll & HAM Revenues 17,851 16,112 EBITDA 15,637 14,532 Gross Debt 98,634 97,711 Business Segment II : Construction + Surplus from other businesses (Combined Gp) Revenues 46,591 38,943 EBI

36. Slide 36: Mumbai Pune TOT – a crown jewel in IRB's portfolio

    Mumbai Pune TOT – a crown jewel in IRB’s portfolio 36 One of the busiest highway corridors in India which is a part of the Golden Quadrilateral on the Mumbai-Chennai arm Project highlights Project snapshot Project Road Length YCEW - 94 Km , NH-48 – 111 Km Project  Tolling operation, Maintenance and

37. Slide 37: Revenue and Traffic Performance

    Revenue and Traffic Performance 37 Revenue 12000 9182 9492 9683 10000 9015 8000 6331 6834 INR mn 5673 6000 4377 3977 4162 4000 3215 3412 2000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2020# 2021* Steady y-o-y growth in ADTC with a 12-year CAGR of 12% * Includes tariff rate hike of 18% fo

38. Slide 38: Transaction Structure

    Transaction Structure 38 Security for USD Noteholders  Share pledge of 100% of the equity Hamilton Purpose Trust shares of India Toll Roads  Charge over all assets of India Toll Roads (other than the NCDs) 100% ownership USD Notes Issued FX risk on INR NCDs’ coupons Offshore and principal fully he

39. Slide 39: Private InvIT – IRB Infrastructure Trust

    39 Private InvIT IRB Infrastructure Trust

40. Slide 40: Private InvIT: IRB Infrastructure Trust

    Private InvIT: IRB Infrastructure Trust 40 IRB is 51% owner & sponsor of the Trust owning portfolio of 9 assets, GIC affiliates own the balance 49% Project Length Current Status and No. Name of the Project (in Lane Kms) Highlights Karnataka 758 1 Goa Kundapur 758 PCOD achieved Maharashtra 1,151 Hary

41. Slide 41: Private InvIT: Equity Valued at INR 146Bn

    Private InvIT: Equity Valued at INR 146Bn 41 • Self-sustainable portfolio, with equity support for under construction projects provided by Sponsor and Investor in ratio of unitholding. • INR 37.5Bn infused by Investor towards first tranche in Feb 2020, INR 30Bn of this amount used for part deleverag

42. Slide 42: Corporate Overview

    42 Corporate Overview

43. Slide 43: Business Structure

    Business Structure 43 IRB 100% 100% 100% Other Non- Core Business Segment I – Business Segment II – Investments Holdings Toll & HAM Construction Airport Mumbai Pune TOT Engg & Const / O&M IRB Infrastructure Trust 51% 49% (Pvt InvIT – 9 BOTs) GIC Affiliates Real Estate Ahd Vadodara BOT Pune Nashik BO

44. Slide 44: IRB group overview

    IRB group overview 44 1 Largest Asset Base in Road Sector of over INR 0.55 Tn 2 Manages and operates 13,095 Lane Kms across 24(1) assets 3 Owns and operates ~ 20% of the Golden Quadrilateral 4 Diversified portfolio spread across 10 states 5 Optimal mix of projects across BOT, TOT and HAM 6 Operating

45. Slide 45: Pan India Presence

    Pan India Presence Financially and technically pre-qualified, and best positioned to capture 45 the largest opportunities in the Road & Highways sector Portfolio Highlights Competitive Advantage  Assets held under three entities:  Only company in the sector to set-up vehicles to efficiently churn

46. Slide 46: Complete Portfolio of Road Assets

    Complete Portfolio of Road Assets 46 BOT / HAM/ TOT PORTFOLIO – KM & LANE KM Lane Km Lane Km Total Particulars under Kms Operational Lane Km Development IRB 1,028 2,120 3,148 Private InvIT 1,139 4,753 5,892 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Public InvIT - 4,055 4,055 C

47. Slide 47: IRB's Unique Proposition

    IRB’s Unique Proposition 47 IRB has built itself into a Fully Integrated Player with In-House Management of All Facets: Tolling, Construction and O&M LARGEST ASSET BASE DEMONSTRATED TRACK RECORD  IRB has the largest asset base in  Incorporated in 1998 and now has Pan-India Roads sector of over INR

48. Slide 48: Bankable Concession Terms

    Bankable Concession Terms 48 Key positive of Indian Roads & Highways sector Typical terms Details a) National Highway Authority of India (NHAI) is an agency appointed by the federal government for development of roads and highways in India NHAI as counterparty b) NHAI is a quasi-sovereign entity wit

49. Slide 49: Construction Major

    Construction Major 49 Strong Construction Efficient Project Large Equipment Bank Ability to Independently Credentials Track Record Execution Capabilities with Cutting Edge Bid for large third party  Country’s first ever BOT  One of the largest BOT  Projects executed Pan- Technologies contracts pr

50. Slide 50: Roadmap so far

    Roadmap so far 50 • IRB becomes first A Journey Spread Over More Than Three Decades of Developing World Class Roads & Highways Infrastructure Toll Roads & Highways • Launched Pvt InvIT with GIC Affiliates developer in India as 49% partner for investment in 9 to tap Offshore Awarded 3 projects BOT As

51. Slide 51: Shareholding Pattern

    Shareholding Pattern 51 Top 5 Shareholders as on September 30, 2021 Shareholding Pattern as on September 30, 2021 Sr. No. Name % 1 LIFE INSURANCE CORPORATION OF INDIA 7.38 FII/EPI 2 GOVERNMENT OF SINGAPORE 3.92 13.34% Promoter & Floating DII 3 SBI LONG TERM EQUITY FUND 2.94 Promoter shares 12.99% Gr

52. Slide 52: Organization Structure

    Organization Structure 52 Mr. Virendra D. Mhaiskar (Chairman and Managing Director) Board of Directors Mrs. Deepali V. Mr. Sudhir Hoshing Mr. Mukesh Gupta Mr. Chandrashekhar Mr. Sunil H. Talati Mr. Sandeep Shah Ms. Heena Raja Mhaiskar Joint Managing Joint Managing S. Kaptan Independent Independent I

53. Slide 53: Corporate Finance

    Corporate Finance 53 Internal Auditors Statutory Auditors Mr. Rajkamal R. Bajaj Suresh Surana & Associates LLP BSR & Co LLP Advisor to the Board Chartered Accountants Chartered Accountants Joint Statutory Auditors Bankers / Lenders of IRB Group Gokhale & Sathe Punjab National Bank Canara Bank Charte

54. Slide 54: NHAI accords "Excellent" Rating for 9 projects

    Recognition: 54 NHAI accords National Highways Authority of India (NHAI) accords “Excellent” rating for 9 of the projects managed/developed by IRB – as per the evaluation methodology devised by the authority to “Excellent” evaluate performance of Highways with the objective of improvement in terms o

55. Slide 55: Awards & Recognition

    Awards & 55 Recognition EPC Company of the Year 2018 Award conferred on by the EPC World ET Edge Maharashtra Achievers’ Award 2018 was conferred on to Shri Virendra D. Mhaiskar. Chairman & Managing Director, IRB Infrastructure Developers Ltd., as ‘The Best Infra Person of the Year’ for his visionary

56. Slide 56: Awards & Recognition

    Awards & 56 Recognition ‘Construction Times Award’ by Construction Times & Equipment Times, for our Solapur Yedeshi Project under category – Best BOT (Road Project of the Year) 2018 ‘FinanceAsia Achievement Award 2017 – Best India Deal’ Award by Hong Kong based FinanceAsia, on successfully launching

57. Slide 57: Our CSR Initiative

    Our CSR Initiative 57 We have replicated same model and have started a school in the We also generously Pathankot district of Punjab, near the Amritsar- Pathankot BOT project. contributed to the Chief Minister’s The School building was inaugurated on 27 March 2017.The school drought relief fund in M

58. Slide 58: Thank You

    Thank You

IRB Infrastructure Developers — Q2 FY2022 Earnings Presentation on 6ix