Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Investor Presentation (June 2020)
105 slides from Welspun Enterprises's investor presentation, Jun 2, 2020
Slide 1: Covering letter to stock exchanges
WEL/SEC/2020 June 02, 2020 To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Bldg, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 532553 NSE Symbol: WELENT Dear Sir/Madam, Subject: Inves
Slide 2: Welspun Enterprises Ltd: An Infra Player with a Difference
WELSPUN ENTERPRISES LTD An Infra Player with a Difference June 2020 Actual photo of Delhi-Meerut Expressway; completed in record 19 months vs. scheduled 30 months 1
Slide 3: Safe Harbor
SAFE HARBOR The information contained in this presentation is provided by Welspun Enterprises Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to
Slide 4: COVID-19 – Impact and Response
COVID-19 – IMPACT AND RESPONSE 3
Slide 5: Welspun is leaving no stone unturned in lending our support
While the world is striving to combat COVID19, we as a responsible organization are standing in solidarity and ensuring safety and wellbeing of our extended family of 100,000+ Welspun is leaving no stone unturned in lending our support and assistance to the government, society, communities, customer
Slide 6: Fighting COVID19 Together
FIGHTING COVID19 TOGETHER #WellAndHome : Safety and Comfort for extended 100,000+ Welspun family ▪ Robust IT infrastructure to enable Work from Home ▪ Isolation wards, Tie-ups with hospitals, Emergency helpline AI based robotic consultancy, virtually connecting with specialist doctor #WellAndLearn:
Slide 7: COVID19 - Impact
COVID19 - IMPACT ➢ Project sites were temporarily shut from March end till Mid April Environment & ➢ No Covid cases were reported and operations have restarted gradually Operations ➢ All government guidelines are being followed during construction ➢ Acquiring Mukarba chowk – Panipat project ➢ All in
Slide 8: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking NIP report Welspun Enterprises - Focused as a developer with special emphasis on HAM - Robust or
Slide 9: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELS eee , R | s E s Ll Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking Sunrise Infra Sector ~ Rs. 111 trillion capital expenditure in infrastructure sector during FY2020-25 as per NIP repor
Slide 10: Welspun Group Overview
WELSPUN GROUP OVERVIEW FY19 Revenue FY19 EBITDA Fixed Asset Base Rs. 185 bn Rs. 25 bn Rs. 61 bn Asset creation calibrated to CAGR 21% (1995-2019) Overall 13% EBITDA margin Demand & Cash flows Net Debt of Rs. 32 bn Strong Credit Rating 25,000+ Employees Welspun India: AA Continuous focus on reducing
Slide 11: Group's Rich Experience of Project Execution
GROUP’S RICH EXPERIENCE OF PROJECT EXECUTION History of designing & building manufacturing plants & projects worth USD 3 bn+ Successfully built Anjar Welspun City, spread across 2,500 acres in Gujarat Built renewable energy portfolio of 1,000+ MW worth Rs.10,000+ crores & successfully divested it Tr
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 11
Slide 13: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Sector wise break up of Capex of Sector wise share in the NIP for Road Rs. 111 trillion in NIP during 2020-2025 sector Ports & Airports Agri & Food Industrial Infra 2% Processing Infra 3% 2% Social Infra Private Centre 4% 39% 25% Digital Infra 3% Ener
Slide 14: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Vision 2025 for Roads Development of 60,000 km of NH - 2,500 km of Expressways, 9,000 km of Economic corridors, 2,000 km of coastal and port connectivity Higher penetration of advanced technology Significantly higher share of the private sector in NH
Slide 15: Potential Under Buy & Turnaround Strategy
POTENTIAL UNDER BUY & TURNAROUND STRATEGY Several projects awarded to various infra players with weaker balance sheet are not financially closed / execution is stuck ….WEL with its strong banking relationship, robust balance sheet and operational excellence sees this as an opportunity to be a Turnar
Slide 16: Water Sector – Key Focus Area for Government
WATER SECTOR – KEY FOCUS AREA FOR GOVERNMENT Government’s Mission: ‘Har Ghar Nal Se Jal’ With India’s water crisis nearing a tipping point, the government announced the Jal Jeevan Mission to provide potable water to every rural household by 2024. 100% Rs 12.6 trillion capital expenditure to be House
Slide 17: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 16
Slide 18: NHAI Hybrid Annuity Model (HAM) Introduced in 2016
NHAI HYBRID ANNUITY MODEL (HAM) INTRODUCED IN 2016…. ….to overcome BOT issues including Land Acquisition Change of scope Traffic changes Toll Risk Financing ….thus, now NHAI awarding more projects under HAM and pure EPC. HAM advantageous to both Developer & Authority NHAI as a partner At least 80% l
Slide 19: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 18
Slide 20: Operational Excellence
ROBUST ROAD PORTFOLIO: Rs. 106+ BILLION, 660+ KM WITH…. ….Order book of Rs. 49 Billion# Robust order book provides strong visibility Net Cash position… Cash on books OPERATIONAL EXCELLENCE Experience of operating Rs. 2.2 Billion FINANCIAL STRENGTH 500+km Toll projects Among very Completed India’s Fi
Slide 21: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building Road portfolio through bid / buy strategy for profitable growth Current order book at ~Rs 49 billion (excluding GST) As on March 2020 EPC of BOT, 24% EPC of HAM, 76% EPC of HAM EPC of BOT Other EPC 20
Slide 22: Operating Leverage to Improve Margins
OPERATING LEVERAGE TO IMPROVE MARGINS FY20 revenue contributed by 5 HAM projects Margin improvement as fixed cost absorption increased with higher execution on multiple projects Revenues and Operating EBITDA (Rs. Mn) 20,000 17.0% 17,394 17,600 18,000 16.0% 16,000 15.0% 14,000 14.0% 12,000 13.0% 9,97
Slide 23: With Undivided Focus on Shareholder Value Creation
WITH UNDIVIDED FOCUS ON SHAREHOLDER VALUE CREATION 41.1% Promoter Management FIIs Banks & Insurance Cos Mutual Funds/AIF Shareholding Pattern Public 2.1% (as on 31st March 2020) 2.9% 2.4% 1.2% 50.3% Market Statistics Creating Shareholder value As on May 29, 2020 INR USD Stated Dividend Distribution
Slide 24: Through an Experienced Board and Management
THROUGH AN EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Chairman Sandeep Garg, Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen; Past President ASSOCHAM (2019) • Harvard Graduate with 30+ years of experience in diverse roles in in
Slide 25: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 24
Slide 26: One of Its Kind Asset Light Model
ONE OF ITS KIND ASSET LIGHT MODEL De-risked execution model Undertakes only Focus mainly on Value unlocking High Value Added Minimal EPC Assets HAM from assets PMC Leverages balance sheet Construction completely Minimal Plant & Continuous unlocking of strength & financial outsourced. Project Machine
Slide 27: Creating Value Through a Profound Strategy
CREATING VALUE THROUGH A PROFOUND STRATEGY 1 2 3 4 Bid for differentiated Achieve early Award construction to Project Management projects/ financial closure best suited sub- Consultancy Buy distressed contractor projects • Reduce execution risk • Lower competition • Strong Balance Sheet • Rigorous m
Slide 28: Delhi Meerut E-Way: Validating Our Differentiated Strategy
DELHI MEERUT E-WAY: VALIDATING OUR DIFFERENTIATED STRATEGY Project Under the Aegis of Prime Minister of India Shri Narendra Modi and NHAI Laying of foundation stone Inauguration of completed project India’s FIRST 14-Lane Expressway India’s FIRST Green Expressway India’s FIRST COMPLETED HAM project –
Slide 29: Appreciation by Prime Minister of India Shri Narendra Modi
APPRECIATION BY PRIME MINISTER OF INDIA SHRI NARENDRA MODI 28
Slide 30: Appreciation by Shri Nitin Gadkari, Union Minister
APPRECIATION BY SHRI NITIN GADKARI, UNION MINISTER 29
Slide 31: Building Much More Than an Expressway
BUILDING MUCH MORE THAN AN EXPRESSWAY Vertical garden developed along the entire bridge 40,000+ Trees transplanted and retained existing trees 3,230 Solar Panels Beautification Initiatives Electrification through solar power of 1050 kWp Wall art & replicas of famous monuments 30
Slide 32: Environment. Education. Empowerment.
WELSPUN ENTERPRISES CSR INITIATIVES Our social mission is enshrined within the 3Es i.e. Education, Empowerment and Environment & Health ENVIRONMENT. Project Model Village To create a sustainable rural community that generates and maintains the resources to improve its level of well-being and happine
Slide 33: Financials
Wy WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 34: Income Statement Q4 & FY20 - Standalone
INCOME STATEMENT Q4 & FY20 - STANDALONE Income Statement Snapshot (Rs Million) Particulars Q4FY20 Q4FY19 YoY Growth Q3 FY20 QoQ Growth FY20 FY19 YoY Growth Revenue from Operations 4,504 7,107 -36.6% 4,899 -8.1% 17,600 17,394 1.2% Other Income 151 39 290.8% 112 34.5% 526 546 -3.7% Total Income 4,655
Slide 35: Income Statement Trend - Standalone
INCOME STATEMENT TREND - STANDALONE Income Statement Snapshot (Rs Million) Particulars FY18 FY19 FY20 Revenue from Operations 9,972 17,394 17,600 Other Income 956 546 526 Total Income 10,928 17,940 18,126 Operating EBITDA** 951 2,106 2,151 Operating EBITDA margin 9.5% 12.1% 12.2% EBITDA 1,660 2,369
Slide 36: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Balance Sheet Snapshot (Rs. Million) 31st Mar 2020 31st Dec 2019 31st Mar 2019 Net worth 17,355 16,849 15,993 Gross Debt 3,100 2,381 1,709 - Long Term Debt 334 423 130 - Short Term Debt 2,766 1,958 1,579 Cash & Cash Equivalents * 5,293 3,078 4,736 Net Debt /(Cash)
Slide 37: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Financials to tap Infra Opportunities Strong Order book providing visibility for next 2 years Asset light business model in Infra with regular project value-enhancement post COD Demonstra
Slide 38: Way Forward
WAY FORWARD Continue approach of prudent bid/buy strategy to strengthen Road portfolio Targeting projects where differentiation is possible Tapping opportunities in State road HAM projects on a selective basis Divest/securitise completed projects in order to unlock value and capital Looking at oppor
Slide 39: Thank You
THANK YOU For further details, please contact: Harish Venkateswaran AVP - Group Finance and Strategy Email: harish_venkateswaran@welspun.com 38
Slide 40: Appendix
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY APPENDIX
Slide 41: NHAI Hybrid Annuity Model (HAM) Overview
NHAI HYBRID ANNUITY MODEL (HAM) OVERVIEW Award criterion: Lowest NPV value based on Construction cost and O&M cost, quoted by the bidders Returns to Concessionaire on Capital Arranged - Annuity payments (biannually) till end of concession period as per predetermined schedule - Interest payments (on
Slide 42: HAM - Lower Risk-Reward vs. BOT
HAM - LOWER RISK-REWARD VS. BOT BOT Toll HAM Traffic Risk Risk borne by concessionaire No risk on the concessionaire Risk with concessionaire as tariffs decided Toll Tariff Rates No risk on the concessionaire as per National Tariff Policy Higher Lower Equity Requirement (25-30% of project cost) (12-
Slide 43: Welspun Enterprises Infrastructure Portfolio
WELSPUN ENTERPRISES INFRASTRUCTURE PORTFOLIO Robust portfolio of 10 infrastructure projects in roads and water supply HAM PROJECTS BOT PROJECTS Delhi-Meerut Expressway (Pkg 1) Gagalheri-Saharanpur- Mukarba Chowk – Panipat Yamunanagar (GSY) Authority: NHAI Status: Completed; Three Authority: NHAI Aut
Slide 44: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: 14 Lane expressway: Six-laning of Delhi – Meerut PROJECT DETAILS Expressway & four-laning either side from 0th km to existing km 8.4 of NH-24 in Delhi Project Length (Kms) 8.716 Km Award Date Jan 2016 Status: Record completion within 19 months. Receive
Slide 45: HAM: Gagalheri-Saharanpur-Yamunanagar
2 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS section of NH-73 in UP / Haryana Project Length (Kms) 51.5 Km Status: NHAI declared the Appointed Date for the Project Acquisition Date Jan 2018 as 26th January 2018; execution in full swing F
Slide 46: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
3 HAM: CHUTMALPUR-GANESHPUR & ROORKEE-CHUTMALPUR-GAGALHERI Scope: 4-Laning of Chutmalpur-Ganeshpur section of NH- PROJECT DETAILS 72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 in UP Project Length (Kms) 53.3 Km & Uttarakhand Acquisition Date Jan 2018 Status: NHAI declared the Appointed Date as
Slide 47: HAM: Aunta-Simaria (Ganga Bridge with Approach Roads)
4 HAM: AUNTA-SIMARIA (Ganga Bridge with Approach Roads) Scope: Six- Laning from Aunta-Simaria (Ganga Bridge with PROJECT DETAILS Approach Roads) Section from km 197.9 to km 206.1 of NH- 31 in Bihar. Includes widest extradosed bridge on Ganga Project Length (Kms) 8.15 Km river Award Date Aug 2017 Fin
Slide 48: HAM: Chikhali-Tarsod
5 HAM: CHIKHALI-TARSOD Scope: 4-laning of Chikhali – Tarsod (Package-IIA) section PROJECT DETAILS of NH-6 from km 360.0 to km 422.7 in Maharashtra Project Length (Kms) 62.7 Km Status: NHAI declared the Appointed Date as 16th January Acquisition Date Jan 2018 2019; execution in full swing Financial C
Slide 49: HAM: Package No. AM 2
6 HAM: PACKAGE NO. AM 2 Scope: Upgradation of Roads in Maharashtra State or Two PROJECT DETAILS Laning Road/ Two Laning Road with paved shoulder under Project Length (Kms) 352.15 Km MRIP Package on Hybrid Annuity Mode (HAM) Package No. AM 2. Award Date Nov 2018 Key Features: Concessionaire to receiv
Slide 50: HAM: Sattanathapuram - Nagapattinam
7 HAM: SATTANATHAPURAM - NAGAPATTINAM Scope: 4 laning of Sattanathapuram to Nagapattinam PROJECT DETAILS (Design Ch Km 123.8 to Km 179.6) section of NH-45A (New Project Length (Kms) 55.755 Km NH -332) in Tamil Nadu Award Date July 2018 Status: Received Letter of Award (LoA) in July 2018; signed FC d
Slide 51: BOT: Mukarba Chowk – Panipat
1 BOT: MUKARBA CHOWK – PANIPAT Scope: 6 to 8 laning from Mukarba Chowk at Km 15.5 and PROJECT DETAILS extends to Panipat at Km 86 in the State of Haryana. Project Stretch lies in the Panipat & Sonipat district of Haryana and Project Length (Kms) 71.1 Km Delhi Acquisition Date June 2020 Financial Clo
Slide 52: Other BOT Projects Summary
OTHER BOT PROJECTS SUMMARY Experience & expertise of successfully operating water project and 500+ kms of roads (Rs. Mn) External Value on Debt on Concession Sector Project Name Location books COD books End (March-20) (March-20) Highways Himmatnagar Bypass Gujarat 6 - Apr-06 Jun-20 Water Supply Dewa
Slide 53: Investment in Oil & Gas Blocks: Potential Value Accretion
INVESTMENT IN OIL & GAS BLOCKS: POTENTIAL VALUE ACCRETION Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle AWEL WEL Effective Block Name Location Status Stake Stake Mumbai AWEL has decided to execute Phase – II of the MB-OSN-2005/2 100% 35% Hi
Slide 54: Welspun Enterprises Ltd: An Infra Player with a Difference
WELSPUN ENTERPRISES LTD An Infra Player with a Difference June 2020 Actual photo of Delhi-Meerut Expressway; completed in record 19 months vs. scheduled 30 months 1
Slide 55: Safe Harbor
SAFE HARBOR The information contained in this presentation is provided by Welspun Enterprises Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to
Slide 56: COVID-19 – Impact and Response
COVID-19 – IMPACT AND RESPONSE 3
Slide 57: Welspun is leaving no stone unturned in lending our support
While the world is striving to combat COVID19, we as a responsible organization are standing in solidarity and ensuring safety and wellbeing of our extended family of 100,000+ Welspun is leaving no stone unturned in lending our support and assistance to the government, society, communities, customer
Slide 58: Fighting COVID19 Together
FIGHTING COVID19 TOGETHER #WellAndHome : Safety and Comfort for extended 100,000+ Welspun family ▪ Robust IT infrastructure to enable Work from Home ▪ Isolation wards, Tie-ups with hospitals, Emergency helpline AI based robotic consultancy, virtually connecting with specialist doctor #WellAndLearn:
Slide 59: COVID19 - Impact
COVID19 - IMPACT ➢ Project sites were temporarily shut from March end till Mid April Environment & ➢ No Covid cases were reported and operations have restarted gradually Operations ➢ All government guidelines are being followed during construction ➢ Acquiring Mukarba chowk – Panipat project ➢ All in
Slide 60: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking NIP report Welspun Enterprises - Focused as a developer with special emphasis on HAM - Robust or
Slide 61: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELS eee , R | s E s Ll Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking Sunrise Infra Sector ~ Rs. 111 trillion capital expenditure in infrastructure sector during FY2020-25 as per NIP repor
Slide 62: Welspun Group Overview
WELSPUN GROUP OVERVIEW FY19 Revenue FY19 EBITDA Fixed Asset Base Rs. 185 bn Rs. 25 bn Rs. 61 bn Asset creation calibrated to CAGR 21% (1995-2019) Overall 13% EBITDA margin Demand & Cash flows Net Debt of Rs. 32 bn Strong Credit Rating 25,000+ Employees Welspun India: AA Continuous focus on reducing
Slide 63: Group's Rich Experience of Project Execution
GROUP’S RICH EXPERIENCE OF PROJECT EXECUTION History of designing & building manufacturing plants & projects worth USD 3 bn+ Successfully built Anjar Welspun City, spread across 2,500 acres in Gujarat Built renewable energy portfolio of 1,000+ MW worth Rs.10,000+ crores & successfully divested it Tr
Slide 64: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 11
Slide 65: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Sector wise break up of Capex of Sector wise share in the NIP for Road Rs. 111 trillion in NIP during 2020-2025 sector Ports & Airports Agri & Food Industrial Infra 2% Processing Infra 3% 2% Social Infra Private Centre 4% 39% 25% Digital Infra 3% Ener
Slide 66: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Vision 2025 for Roads Development of 60,000 km of NH - 2,500 km of Expressways, 9,000 km of Economic corridors, 2,000 km of coastal and port connectivity Higher penetration of advanced technology Significantly higher share of the private sector in NH
Slide 67: Potential Under Buy & Turnaround Strategy
POTENTIAL UNDER BUY & TURNAROUND STRATEGY Several projects awarded to various infra players with weaker balance sheet are not financially closed / execution is stuck ….WEL with its strong banking relationship, robust balance sheet and operational excellence sees this as an opportunity to be a Turnar
Slide 68: Water Sector – Key Focus Area for Government
WATER SECTOR – KEY FOCUS AREA FOR GOVERNMENT Government’s Mission: ‘Har Ghar Nal Se Jal’ With India’s water crisis nearing a tipping point, the government announced the Jal Jeevan Mission to provide potable water to every rural household by 2024. 100% Rs 12.6 trillion capital expenditure to be House
Slide 69: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 16
Slide 70: NHAI Hybrid Annuity Model (HAM) Introduced in 2016
NHAI HYBRID ANNUITY MODEL (HAM) INTRODUCED IN 2016…. ….to overcome BOT issues including Land Acquisition Change of scope Traffic changes Toll Risk Financing ….thus, now NHAI awarding more projects under HAM and pure EPC. HAM advantageous to both Developer & Authority NHAI as a partner At least 80% l
Slide 71: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 18
Slide 72: Operational Excellence
ROBUST ROAD PORTFOLIO: Rs. 106+ BILLION, 660+ KM WITH…. ….Order book of Rs. 49 Billion# Robust order book provides strong visibility Net Cash position… Cash on books OPERATIONAL EXCELLENCE Experience of operating Rs. 2.2 Billion FINANCIAL STRENGTH 500+km Toll projects Among very Completed India’s Fi
Slide 73: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building Road portfolio through bid / buy strategy for profitable growth Current order book at ~Rs 49 billion (excluding GST) As on March 2020 EPC of BOT, 24% EPC of HAM, 76% EPC of HAM EPC of BOT Other EPC 20
Slide 74: Operating Leverage to Improve Margins
OPERATING LEVERAGE TO IMPROVE MARGINS FY20 revenue contributed by 5 HAM projects Margin improvement as fixed cost absorption increased with higher execution on multiple projects Revenues and Operating EBITDA (Rs. Mn) 20,000 17.0% 17,394 17,600 18,000 16.0% 16,000 15.0% 14,000 14.0% 12,000 13.0% 9,97
Slide 75: With Undivided Focus on Shareholder Value Creation
WITH UNDIVIDED FOCUS ON SHAREHOLDER VALUE CREATION 41.1% Promoter Management FIIs Banks & Insurance Cos Mutual Funds/AIF Shareholding Pattern Public 2.1% (as on 31st March 2020) 2.9% 2.4% 1.2% 50.3% Market Statistics Creating Shareholder value As on May 29, 2020 INR USD Stated Dividend Distribution
Slide 76: Through an Experienced Board and Management
THROUGH AN EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Chairman Sandeep Garg, Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen; Past President ASSOCHAM (2019) • Harvard Graduate with 30+ years of experience in diverse roles in in
Slide 77: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 24
Slide 78: One of Its Kind Asset Light Model
ONE OF ITS KIND ASSET LIGHT MODEL De-risked execution model Undertakes only Focus mainly on Value unlocking High Value Added Minimal EPC Assets HAM from assets PMC Leverages balance sheet Construction completely Minimal Plant & Continuous unlocking of strength & financial outsourced. Project Machine
Slide 79: Creating Value Through a Profound Strategy
CREATING VALUE THROUGH A PROFOUND STRATEGY 1 2 3 4 Bid for differentiated Achieve early Award construction to Project Management projects/ financial closure best suited sub- Consultancy Buy distressed contractor projects • Reduce execution risk • Lower competition • Strong Balance Sheet • Rigorous m
Slide 80: Delhi Meerut E-Way: Validating Our Differentiated Strategy
DELHI MEERUT E-WAY: VALIDATING OUR DIFFERENTIATED STRATEGY Project Under the Aegis of Prime Minister of India Shri Narendra Modi and NHAI Laying of foundation stone Inauguration of completed project India’s FIRST 14-Lane Expressway India’s FIRST Green Expressway India’s FIRST COMPLETED HAM project –
Slide 81: Appreciation by Prime Minister of India Shri Narendra Modi
APPRECIATION BY PRIME MINISTER OF INDIA SHRI NARENDRA MODI 28
Slide 82: Appreciation by Shri Nitin Gadkari, Union Minister
APPRECIATION BY SHRI NITIN GADKARI, UNION MINISTER 29
Slide 83: Building Much More Than an Expressway
BUILDING MUCH MORE THAN AN EXPRESSWAY Vertical garden developed along the entire bridge 40,000+ Trees transplanted and retained existing trees 3,230 Solar Panels Beautification Initiatives Electrification through solar power of 1050 kWp Wall art & replicas of famous monuments 30
Slide 84: Environment. Education. Empowerment.
WELSPUN ENTERPRISES CSR INITIATIVES Our social mission is enshrined within the 3Es i.e. Education, Empowerment and Environment & Health ENVIRONMENT. Project Model Village To create a sustainable rural community that generates and maintains the resources to improve its level of well-being and happine
Slide 85: Financials
Wy WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 86: Income Statement Q4 & FY20 - Standalone
INCOME STATEMENT Q4 & FY20 - STANDALONE Income Statement Snapshot (Rs Million) Particulars Q4FY20 Q4FY19 YoY Growth Q3 FY20 QoQ Growth FY20 FY19 YoY Growth Revenue from Operations 4,504 7,107 -36.6% 4,899 -8.1% 17,600 17,394 1.2% Other Income 151 39 290.8% 112 34.5% 526 546 -3.7% Total Income 4,655
Slide 87: Income Statement Trend - Standalone
INCOME STATEMENT TREND - STANDALONE Income Statement Snapshot (Rs Million) Particulars FY18 FY19 FY20 Revenue from Operations 9,972 17,394 17,600 Other Income 956 546 526 Total Income 10,928 17,940 18,126 Operating EBITDA** 951 2,106 2,151 Operating EBITDA margin 9.5% 12.1% 12.2% EBITDA 1,660 2,369
Slide 88: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Balance Sheet Snapshot (Rs. Million) 31st Mar 2020 31st Dec 2019 31st Mar 2019 Net worth 17,355 16,849 15,993 Gross Debt 3,100 2,381 1,709 - Long Term Debt 334 423 130 - Short Term Debt 2,766 1,958 1,579 Cash & Cash Equivalents * 5,293 3,078 4,736 Net Debt /(Cash)
Slide 89: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Financials to tap Infra Opportunities Strong Order book providing visibility for next 2 years Asset light business model in Infra with regular project value-enhancement post COD Demonstra
Slide 90: Way Forward
WAY FORWARD Continue approach of prudent bid/buy strategy to strengthen Road portfolio Targeting projects where differentiation is possible Tapping opportunities in State road HAM projects on a selective basis Divest/securitise completed projects in order to unlock value and capital Looking at oppor
Slide 91: Thank You
THANK YOU For further details, please contact: Harish Venkateswaran AVP - Group Finance and Strategy Email: harish_venkateswaran@welspun.com 38
Slide 92: Appendix
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY APPENDIX
Slide 93: NHAI Hybrid Annuity Model (HAM) Overview
NHAI HYBRID ANNUITY MODEL (HAM) OVERVIEW Award criterion: Lowest NPV value based on Construction cost and O&M cost, quoted by the bidders Returns to Concessionaire on Capital Arranged - Annuity payments (biannually) till end of concession period as per predetermined schedule - Interest payments (on
Slide 94: HAM - Lower Risk-Reward vs. BOT
HAM - LOWER RISK-REWARD VS. BOT BOT Toll HAM Traffic Risk Risk borne by concessionaire No risk on the concessionaire Risk with concessionaire as tariffs decided Toll Tariff Rates No risk on the concessionaire as per National Tariff Policy Higher Lower Equity Requirement (25-30% of project cost) (12-
Slide 95: Welspun Enterprises Infrastructure Portfolio
WELSPUN ENTERPRISES INFRASTRUCTURE PORTFOLIO Robust portfolio of 10 infrastructure projects in roads and water supply HAM PROJECTS BOT PROJECTS Delhi-Meerut Expressway (Pkg 1) Gagalheri-Saharanpur- Mukarba Chowk – Panipat Yamunanagar (GSY) Authority: NHAI Status: Completed; Three Authority: NHAI Aut
Slide 96: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: 14 Lane expressway: Six-laning of Delhi – Meerut PROJECT DETAILS Expressway & four-laning either side from 0th km to existing km 8.4 of NH-24 in Delhi Project Length (Kms) 8.716 Km Award Date Jan 2016 Status: Record completion within 19 months. Receive
Slide 97: HAM: Gagalheri-Saharanpur-Yamunanagar
2 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS section of NH-73 in UP / Haryana Project Length (Kms) 51.5 Km Status: NHAI declared the Appointed Date for the Project Acquisition Date Jan 2018 as 26th January 2018; execution in full swing F
Slide 98: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
3 HAM: CHUTMALPUR-GANESHPUR & ROORKEE-CHUTMALPUR-GAGALHERI Scope: 4-Laning of Chutmalpur-Ganeshpur section of NH- PROJECT DETAILS 72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 in UP Project Length (Kms) 53.3 Km & Uttarakhand Acquisition Date Jan 2018 Status: NHAI declared the Appointed Date as
Slide 99: HAM: Aunta-Simaria (Ganga Bridge with Approach Roads)
4 HAM: AUNTA-SIMARIA (Ganga Bridge with Approach Roads) Scope: Six- Laning from Aunta-Simaria (Ganga Bridge with PROJECT DETAILS Approach Roads) Section from km 197.9 to km 206.1 of NH- 31 in Bihar. Includes widest extradosed bridge on Ganga Project Length (Kms) 8.15 Km river Award Date Aug 2017 Fin
Slide 100: HAM: Chikhali-Tarsod
5 HAM: CHIKHALI-TARSOD Scope: 4-laning of Chikhali – Tarsod (Package-IIA) section PROJECT DETAILS of NH-6 from km 360.0 to km 422.7 in Maharashtra Project Length (Kms) 62.7 Km Status: NHAI declared the Appointed Date as 16th January Acquisition Date Jan 2018 2019; execution in full swing Financial C
Slide 101: HAM: Package No. AM 2
6 HAM: PACKAGE NO. AM 2 Scope: Upgradation of Roads in Maharashtra State or Two PROJECT DETAILS Laning Road/ Two Laning Road with paved shoulder under Project Length (Kms) 352.15 Km MRIP Package on Hybrid Annuity Mode (HAM) Package No. AM 2. Award Date Nov 2018 Key Features: Concessionaire to receiv
Slide 102: HAM: Sattanathapuram - Nagapattinam
7 HAM: SATTANATHAPURAM - NAGAPATTINAM Scope: 4 laning of Sattanathapuram to Nagapattinam PROJECT DETAILS (Design Ch Km 123.8 to Km 179.6) section of NH-45A (New Project Length (Kms) 55.755 Km NH -332) in Tamil Nadu Award Date July 2018 Status: Received Letter of Award (LoA) in July 2018; signed FC d
Slide 103: BOT: Mukarba Chowk – Panipat
1 BOT: MUKARBA CHOWK – PANIPAT Scope: 6 to 8 laning from Mukarba Chowk at Km 15.5 and PROJECT DETAILS extends to Panipat at Km 86 in the State of Haryana. Project Stretch lies in the Panipat & Sonipat district of Haryana and Project Length (Kms) 71.1 Km Delhi Acquisition Date June 2020 Financial Clo
Slide 104: Other BOT Projects Summary
OTHER BOT PROJECTS SUMMARY Experience & expertise of successfully operating water project and 500+ kms of roads (Rs. Mn) External Value on Debt on Concession Sector Project Name Location books COD books End (March-20) (March-20) Highways Himmatnagar Bypass Gujarat 6 - Apr-06 Jun-20 Water Supply Dewa
Slide 105: Investment in Oil & Gas Blocks: Potential Value Accretion
INVESTMENT IN OIL & GAS BLOCKS: POTENTIAL VALUE ACCRETION Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle AWEL WEL Effective Block Name Location Status Stake Stake Mumbai AWEL has decided to execute Phase – II of the MB-OSN-2005/2 100% 35% Hi
Welspun Enterprises — Investor Presentation (June 2020) on 6ix