Slide 1: MEP Infrastructure Developers Limited Corporate Presentation
MEP INFRASTRUCTURE DEVELOPERS LIMITED Corporate Presentation June 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 Company Overview Industry Overview Company Profile India Road Network – Size And Growth Key Milestones Indian Road Sector on Revival Path – Key Policy Diversified Project Portfolio (OMT / Toll / HAM / Measures BOT) with Pan India Presence Project Models in the Road
Slide 4: Company Overview
Company Overview
Slide 5: Company profile
Company 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 contracts at the M
Slide 6: Key Milestones
Key Milestones Awarded the Phalodi MEPIDL (in JV with Sanjose 2016 Crossed Rs 10,000 mn of revenue in a Ramji toll collection India) forayed into road single financial year (FY 12) for the contract in Rajasthan development with Hybrid first time by RIDCOR for a Annuity model projects period of
Slide 7: Diversified Project Portfolio With Pan India Presence
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 4 1 10 Tamil Nadu 1 1 1 - - 4 Rajasthan - - 3* - - 1 Uttar Pradesh Gujarat - - 1 1 - 2 Rajasthan Uttar Pr
Slide 8: Leadership Position In OMT And Toll Collection In India
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) 4150 5 5 2,550 2,400 2,200 3,400 3,000 2,600 1,600 1,850 2 2 1,050 1 MEPIDL PATH DRAIPL SMS PI MEPIDL PATH DRAIPL SMS PI MEPIDL PATH DRAIPL SMS PI PATH –
Slide 9: Shareholding Structure
Shareholding Structure Share Price Performance Market Data As on 31.05.2016 (BSE) Share Price Rs 63.0 Share Price Rs 39.7 As on 1 July 2015 (BSE) As on 31 May 2016 (BSE) Market Capitalization (Rs Mn) 6,45.5 70 60 50 No. of shares outstanding (Mn) 162.6 40 30 20 Face Value (Rs.) 10.0 10 0 52 week Hig
Slide 10: Experienced Promoters And Management Team – Board Of Directors
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 Independent and Non
Slide 11: Experienced Promoters And Management Team – Key Management
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 Builders Private L
Slide 12: Understanding Our Business Model
Understanding Our Business Model
Slide 13: Understanding Our Business Model: 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 14: 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 15: Sustainable Competitive Advantages
Sustainable Competitive Advantages
Slide 16: Strong Execution Capabilities With Proven Track Record
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 presence across 8 states. Complet
Slide 17: Integrated Structure With In-house Capabilities
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 amount of toll to be collected. T
Slide 18: Use Of Advanced Technology For Toll Collection
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 RFID technology ba
Slide 19: Consolidated Financials
Consolidated Financials
Slide 20: Q3 & 9M FY16 Results Highlights
Q3 & 9M FY16 Results Highlights In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA MARGIN 20,068 20,088 33.1% 28.7% 29.7% 28.2% Consistent Revenue 23.7% Accretion 5,955 Significant growth in 4,761 operating profitability 5,229 5,157 5,216 1,475 1,482 1,726 Q4 FY16 Q3 FY16 Q4 FY15 FY16 FY15 Q4 FY16 Q3
Slide 21: Revenue Analysis
Revenue Analysis REVENUE BREAKUP FY16 FY15 33.4% 41.5% 45.9% 43.3% 20.6% 15.2% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection (Q4) FY16 (Q3) FY16 38.5% 34.4% 45.3% 45.2% 16.2% 20.4% Long Term - OMT Short Term – Toll Collection Long Term – Toll Collection 21
Slide 22: Consolidated P&L Statement
Consolidated P&L Statement Particulars in Rs. Mn 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 Expenses 219 294 360 32
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars in Rs. Mn FY12 FY13 FY14 FY15 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 -613 Total Shareholder's Funds 621 -308 -878 -2,264 1,012 Share Application Money 453 453 - -
Slide 24: Industry Overview
Industry Overview
Slide 25: India Road Network – Size And Growth
India Road Network – Size And Growth At 5.23 million km, India has the second largest road network in the India Road Network Share % world. National State Highways Highways National highways account for ~ 2% of the network. State highways 2% 3% account for 3% and the Major District Roads (MDRs)
Slide 26: Indian Road Sector On Revival Path
Indian Road Sector On Revival Path Significant Pickup In New Projects Highway Projects Awarded by NHAI (km) 6,400 5,058 CAGR 51% 3,810 3,067 1,465 1,116 FY11 FY12 FY13 FY14 FY15 FY16 The total length of the National highways is expected to cross ~200,000 km in next five years. a) This expansion wi
Slide 27: Indian Road Sector On Revival Path – Key Policy Measures
Indian Road Sector On Revival Path – Key Policy Measures Initiatives to Revive the Road Sector Shift towards EPC contracts which would be awarded on a turnkey basis instead of item-rate contract basis. Regulatory clearances to ~ 80 stuck projects and railway clearances for 85 projects with railw
Slide 28: Indian Road Sector On Revival Path – Key Policy Measures
Indian Road Sector On Revival Path – Key Policy Measures Policies For Different Stages Of PPP Project Development Standard bidding documents – RFQ and RFP – used to bid for projects under NHDP. Since 2011, the annual pre-qualification criteria are used to shortlist developers to directly enter t
Slide 29: PPP Models In The Road Sector
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 focus on life cycle a
Slide 30: Trend In Project Awarding - EPC Vs BOT Model
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 2,560 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 FY15 FY16 EPC BOT HAM • The tr
Slide 31: Hybrid Annuity Model: Recent evolution in the Road sector
Hybrid Annuity Model: Recent evolution in the Road sector New Hybrid Annuity Model expected To Improve Private Participation Going forward, over 80% of the road projects are proposed to be awarded under EPC and Hybrid Annuity Model (HAM) routes. For FY17, MoRTH and NHAI have lined up 40% of total ro
Slide 32: Hybrid Annuity Model - MEPIDL's Recent Project Wins
Hybrid Annuity Mode- MEPIDL’s Recent Project Wins Project Asset Arawali Kante Kante Wakad Nagpur Package I Nagpur Package II Talaja Mahuva* Four-laning of Talaja Four-laning standalone Four-laning standalone Four-laning of NH66 Four- laning of NH66 Mahuva section of NH Scope of Ring Road / Bypass (k
Slide 33: Toll-Operate-Transfer : Upcoming model
Toll-Operate-Transfer : Upcoming 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 toll roa
Slide 34: OMT Model
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. entry of specialised p
Slide 35: Outlook On OMT Model
Outlook On OMT Model Outlook For The OMT Model Market Size (Km) on bids invited basis According to CRISIL estimates, the total stretch under OMT 5,600 km 11,600 km model for NHAI and key states (combined) is expected to double (49-50 projects) (95-105 projects) from ~ 5,600 km in 2014-15 to ~ 11,6
Slide 36: Outlook On Toll Model
Outlook On Toll Model Outlook For The Toll Collection Model Market Size (Km) on bids invited basis Market Opportunity (Rs bn) 22,200 km 15,190 km (358-372 projects) 1.5 x (~ 248 - 250 projects) 78.1 52.1 24.1 46% 47% 13.1 1.5 x 54% 53% 54.0 39.0 2014-15 2018-19 2014-15 2018-19 National Highway State
Slide 37: Key Financing Sources
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 both Centre and States
Slide 38: Infrastructure Investment Trust (InvIT)
Infrastructure Investment Trust (InvIT) Key Highlights InvIT Framework The Sponsor is required to hold a minimum of Sponsor Institutional Investors 25% stake in the InvIT. SEBI has proposed to relax Not more the minimum Sponsor holding to 10%. than 3 Sponsor is required to have net worth of at l
Slide 39: Annexure
Annexure 39
Slide 40: Corporate Structure
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 Toll Private Private
Slide 41: OMT Projects
OMT Projects Particulars Madurai – Kanyakumari Hyderabad - Bangalore Rajiv Gandhi Sea link Mumbai Entry Points Four lane carriage way located Four lane carriage way located on Links Bandra in the Western Five entry points located on on NH-7, which is a major NH-7, passes through industrial Suburbs o
Slide 42: Long Term Toll Collection Projects
Long Term Toll Collection Projects 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 Kolhapur section of IT corridor H
Slide 43: Short Term Toll Collection Projects
Short Term Toll Collection Projects Sr. Toll Plaza State Client Term Payment to Authority No 1 Surajbari Gujarat NHAI October 12, 2015 to October 12, 2016 Rs 740.7 mn to be paid in Weekly Instalment of Rs. 14.20 mn Tamil 2 Athur NHAI March 26,2016 to March 25,2017 Rs 723.6.0 mn to be paid in weekly
Slide 44: Hybrid Annuity Model Projects
Hybrid Annuity Model Projects Project Asset Arawali Kante Kante Wakad Nagpur Package I Nagpur Package II Talaja Mahuva * Four-laning standalone Four-laning standalone Four-laning of NH66 (km Four- laning of NH66 Four laning of the Talaja- Scope of Ring Road / Bypass (km Ring Road / Bypass (km 241.3
Slide 45: Industry Overview: Investment in Infrastructure Sector
Industry Overview: Investment in Infrastructure Sector Investment In The Indian Infrastructure Sector 11th FYP: Rs 20.6 trillion 12th FYP: Rs 51.5 trillion (Rs tn) 17% 9% 3% 27.3 33% 24.2 1% 16% 21% 15% 3x 18% 1% 4% 13% 13% 36% Public Private Electricity Roads Telecommunications Railways Ports Airpo
Slide 46: Industry Overview: Growth Drivers For Investment In Roads And Highways
Industry Overview: Growth Drivers For Investment In Roads And Highways Moderate Growth In Freight Demand Road Freight Traffic Gaining Preference Proportion of Freight Traffic Across Modes of Transport 2,500 Freight demand BTKM (LHS) 2,000 6% 3% 5% 5% 1,500 1,000 28% FY15E 32% FY10 58% 500 63% Freigh
Slide 47: Industry Overview: OMT And Toll Collection Model
Industry Overview: OMT And Toll Collection Model OMT Project Activity OMT - Overview OMT model was introduced by NHAI in 2009 for select existing and near completion four-lane National Highways Under NHAI – FY10 to FY15 It provides consistent revenues to NHAI and Just-in-Time maintenance of the
Slide 48: Industry Overview: Revised Tolling Policy
Industry Overview: Revised Tolling Policy Revised Tolling Policy The National Highways Act, 1956 authorises levy of toll (fee) – Amendments made to the National Highway Fee (determination of rates and collection) Rules 2008 – - Under Section 7 for public-funded projects In case of upgradation of
Slide 49: Industry Overview: 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 50: Industry Overview: 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 51: Glossary
Glossary ADB Asian Development Bank BRO Borders Road Organization BSRDC Bihar State Road & Bridges Development Corporation CCEA Cabinet Committee on Economic Affairs EPC Engineering, Procurement, Construction ETC Electronic Toll Collection GQ Golden Quadrilateral HRBC Hooghly River Bridge Commission
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