Il&fs Transportation Networks Limited · NSE:IL&FSTRANS
Il&fs Transportation Networks — Merger or Acquisition (January 2012)
18 slides from Il&fs Transportation Networks's merger presentation, Jan 3, 2012
Slide 1: YuHe Expressway, Chongqing, China
YuHe Expressway, Chongqing, China Analyst Presentation January 3, 2012
Slide 2: Chongqing YuHe Expressway Company Shares Purchase Agreement Signing Ceremony
2 ae — ee) - - es foa- *tan Chongqing YuHe Expressway Company Shares Purchase Agreement Signing Ceremony j eur s \eancee Standing from Left to Right: Hari Sankaran - Vice Chairman and Managing Director, IL&FS | Xie Zhongwen - Chairman, Singapore Cooperation Enterprise | Karunakaran Ramchand - CEO (I
Slide 3: Project Acquisition Rationale
Project Acquisition Rationale y One of the growth strategies envisaged by IL&FS Transportation is inorganic growth through acquisition of operational projects y Benefits B fi offered ff d : y Reduces the gestation period of a project y Operational assets can be acquired at good valuations y Exponent
Slide 4: China – Road Opportunities
China – Road Opportunities y Steady St d Growth G th y YoY GDP Growth +9.1% 2011 Q3 y YoY Export Growth +17% y YoY Passenger car sales +6.1% y World’s second largest expressway network y 74,000 kms – Existing Expressway Network y Jiangsu Expressway Ltd. – 715 kms y Shenzen Expressway Ltd. Ltd – 712
Slide 5: Chongqing
Chongqing y Only municipality in western China directly under the Central Government y Fastest growing municipality in the country Beijing y GDP growth – Q3, 2011 – 16.5% Tianjin y Major j Industries Chongqing Shanghai y Automobiles and Motorcycles manufacturing y Aluminium equipment manufacture Ind
Slide 6: Chongqing Expressway Group (CEG)
Chongqing Expressway Group (CEG) y CEG is an enterprise owned by State Owned Assets Supervision and Administration Commission of Chongqing (SASAC) y Nodal d l expressway company in Chongqing h y Length: 1,856 Kms y Projects funded by multilateral institutions like the World Bank, Bank ADB, ADB JBIC
Slide 7: YuHe Expressway
YuHe Expressway Location One of 8 radials in “2 Ring – 8 Radials” Length From: Inner Ring Road, To: Hechuan County (58.72 km) Yu Bei District Carriageway 2x2 with hard width shoulders Concession Term : 30 yrs Residual : 20.5 yrs Bridges 55 nos. nos (8 Km) Tunnels 5 nos. (7.2 km) Structures Interchan
Slide 8: Acquisition Structure
Acquisition Structure IL&FS Transportation Networks Limited NDIA (ITNL) IN Promoter funding USD 30 million Ownership 100% NGAPORE ITNL International Pte Ltd Borrows USD 140 From offshore (IIPL) million Banks/ FIs or SIN offshore bonds Pays USD 160mn Ownership 49% for 49% stake SASAC CHINA Ownership
Slide 9: Project Highlights
Project Highlights y Transparently bid out with assistance from World Bank and Singapore Government y Project revenue mix of toll collection and assured revenue provides revenue stability y Toll T ll revenue charged h d from f users att 5 locations l ti (27.1 (27 1 km) k ) provides id around d 60% r
Slide 10: Revenue Drivers – toll 2015
Revenue Drivers – toll 2015 •Development of Liangjian New District •3rd National Economic Zone •Preferential Industrial policies •Financial centres 20122 - 14 •Logistics hub •Manufacturing f •Exhibition Centre •Completion p of Nanchongg – Guangyuan Expressway •Enhanced connectivity
Slide 11: Revenue Drivers 2015 onwards
Revenue Drivers 2015 onwards •Chengyu Economic Zone development goal •Chongqing ‐ focal centre •Technology and innovation 2015 onnwards centre •Financial centre •Completion of Guangyuan ‐ Lanzhou Expressway •Chongqing 3rd Ring Road •Improved road network
Slide 12: Operational Financial Parameters
Operational Financial Parameters Contracted Subsidies (in USD mn) 60.00 Financial In USD million 50.00 Parameters* Parameters CY11E 40.00 30.00 Toll Revenue 30.95 20.00 Subsidy Revenue 22 31 22.31 10.00 Lease Revenue 0.23 ‐ 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Total Revenue 53 49 53.49
Slide 13: Benefits to ITNL
Benefits to ITNL y Increase in Sustained revenues from toll/annuity y Improvement in EBITDA margins y Increase in Earnings Per Share y Improvement in Debt Equity Ratio y Enhancement of ITNL experience / qualification
Slide 14: Project Pictures
A&llsf5 | Transportation Project Pictures
Slide 15: Project Pictures
| = 7 oes P roj e ct Pi ctu res
Slide 16: Project Pictures
Project Pictures
Slide 17: Thank You
Thank You IL&FS Transportation Networks Limited The IL&FS Financial Centre C 22 G Bl C-22, Block, k BBandra d K Kurla l CComplex l Bandra (East), Mumbai – 400 051 Board: +91 22 2653 3333 Fax: +91 22 2652 3979 Email: itnlinvestor@ilfsindia com itnlinvestor@ilfsindia.com
Slide 18: Chongqing
Subsidy Section (annuity) Toll Section Toll Station (on Ramps) Chongqing
IL&FS Transportation Networks — Merger or Acquisition (January 2012) on 6ix