Gmr Airports Ltd · NSE:GMRAIRPORT
Gmr Airports — GMR Airports Infrastructure — Investor Presentation (November 2023)
49 slides from Gmr Airports's investor presentation, Nov 6, 2023
Slide 1: GMR Airports Infrastructure Limited exchange disclosure letter
GMR AIRPORTS INFRASTRUCTURE LIMITED (Formerly known as GMR Infrastructure Limited) November 6, 2023 BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E) Mumbai 400001. Mumbai - 400051. Scri
Slide 2: GMR Airports Infrastructure Ltd. Investor Presentation November 2023
GMR Airports Infrastructure Ltd. (formerly GMR Infrastructure Ltd.) Investor Presentation November 2023
Slide 3: Disclaimer
DISCLAIMER This Material and any discussions which follows may contain ‘forward looking statements’ relating to the Company and the GMR Group and may include All statements, graphics, data, tables, charts, logos, names, figures and all other statements relating to future results of operation, financ
Slide 4: Table of contents
Table of contents Page Nos. 1 Company overview & relative positioning 4–9 2 Industry overview 10 – 14 3 Business update 15 – 19 4 Growth strategy 20 – 28 5 Key financials 29 – 33 6 Partnership, leadership and ESG 34 – 37 7 Annexures 39 – 47 2
Slide 5: Poised for breakout growth as a pure airport player
Poised for breakout growth as a pure airport player Portfolio of 7 world class airport assets Multiple growth Present across acting as and profitability World’s 2nd largest private airport operator most lucrative Asian markets - Indian aviation regional / national hubs with significant levers presen
Slide 6: Company overview & relative positioning
Company overview & relative positioning
Slide 7: Leading global airports platform with end to end capabilities
Leading global airports platform with end to end capabilities across the airport value chain One of the largest airports platform… “Best Airport” in #96 2nd Largest1 globally CY22 No. of airport assets 27%5 In Asia Pacific catering Largest in India under operations or share of passenger to 40mn+ pax
Slide 8: World's 2nd largest private airport operator
World’s 2nd largest private airport operator… No. of Assets3 65 91 5 4 12 5 21% 14% Traffic Split by 100% 100% 100% 100% Geography2 Developed economies 86% 79% Emerging economies 2022 passengers 187 904 72 71 57 45 (m pax) Geographic Europe, Asia and Europe and Latin Asia and Europe Europe Latin Ame
Slide 9: India's largest and most experienced pure-play airports platform
…India’s largest and most experienced pure-play airports platform GIL is India’s only listed airport operator with an uniquely crafted story FY2023 Private Operator Proportion of Number of International Airport operating Number of Greenfield development Passengers Market Share International Internat
Slide 10: Global portfolio of marquee assets
Global portfolio of marquee assets Faster ramp-up expected given old airports with existing traffic to be closed post COD of new airports DIAL GHIAL MOPA Medan Mactan Cebu Bidar Nagpur Bhogapuram Crete Airport / % GAL stake (64%) (74%)8 (100%)6 (49%) (33.3%)5 (63%)1 (100%)2 (100%) (21.6%) Base city
Slide 11: Delhi airport was the 9th busiest airport in 2022
Delhi airport (DIAL) was the 9th busiest airport in 2022 100 Top 10 Busiest Airports 90 80 70 60 Pax in mn 50 40 30 20 10 0 ATL DFE DEN ORD DXB LAX IST LHR DEL CDG 1 2 3 4 5 6 7 8 9 10 Pax - 2022 Pax - 2021 Delhi Airport moved up 4 ranks from 13th in 2021 to 9th in 2022 and given the pax growth coup
Slide 12: Industry overview
Industry overview Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 13: GIL exposure to fastest growing emerging markets
GIL has exposure to some of the fastest growing and attractive emerging markets (India and South East Asia) GIL’s core markets expected to have the highest growth rate among all regions globally Centre of gravity continues to shift towards east Ranking of aviation markets South Asia South East Asia
Slide 14: Asian aviation market poised to grow substantially
Asian aviation market is poised to grow substantially on the back of attractive sector dynamics Aggressive fleet expansion by low cost carriers (LCC) in South Asia Strong fleet order pipeline coupled with emergence of new carriers, and South East Asia (SEA) to support rising demand as airlines looks
Slide 15: India at an inflection point, offering massive growth potential
India, GIL’s core market, is at an inflection point, offering massive potential for future growth Benchmarking with China suggests that India can expect a boost in International Outbound Traffic in the China case study next decade supported by tourism, migration & trade GDP per High domestic growth
Slide 16: India and Indonesia's air connectivity rose significantly
India and Indonesia’s air connectivity rose significantly over 2009 to 2019 India’s air connectivity India’s network of direct flights in 2014 and 2019 growth (2009 to 2019) Air connectivity scores for countries Destination-weighted seats2 (m) IATA air connectivity ranking1 2014 1.2 Global Global Gl
Slide 17: Business update
Business update Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 18: Key Highlights – Q2FY24
Key Highlights – Q2FY24 ❖ CCI approval received during Q4FY23 Steady Progress on Merger of ❖ NoC received from RBI1 & both the Stock Exchanges2; Merger application filed with the NCLT3 GAL with GIL ❖ Recently received NCLT direction for convening the meeting of the Equity Shareholders of GIL on Dec.
Slide 19: Key Highlights – Q2FY24
Key Highlights – Q2FY24 ❖ Entered into SPA with MAHB Group towards acquisition of MAHB Group’s current minority Consolidating 11% equity stake in GMR Hyderabad International Airport Limited$ Core assets Post the proposed acquisition, GAL stake in GHIAL to increase to 74% Negotiated aggregate con
Slide 20: Merger of GAL with GIL: Key transaction highlights
Merger of GAL with GIL: Key transaction highlights Earnouts Additionally, GIL to receive INR5,500m as Settlement of equity earnouts increasing GIL’s settled part of settlement of the cash earnouts by stake in GAL to 55% (pre-merger) from 51% Groupe ADP GMR group to remain1 Merger GMR group continue
Slide 21: Rationale of merger
Rationale of merger Strengthening of Relationship Strengthening of Balance Sheet ✓ Strengthening the strategic relationship with Groupe ✓ Deleverage GIL’s balance sheet by repaying ADP by bringing them at the listed company level corporate debt and settling majority of contingent liabilities related
Slide 22: Growth strategy
Growth strategy Humility | Entrepreneurship | Teamwork agi Relationships | Deliver the fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 23: Transitioned into a full service airports operator
Transitioned into a full service airports operator with well-defined strategies in place GIL has mastered both organic + inorganic growth strategy Bidding for new airport Capacity in place to meet concessions in key increase in pax demand emerging markets Capitalize on non-aero Strong track
Slide 24: Substantial headroom for growth in key airports
Substantial headroom for growth in key airports 1 with a potential to serve as a regional hub Delhi airport – creating an international hub Hyderabad airport – almost in central India Srinagar Jammu Dharamshala 70% of Indian airports fall under Delhi’s Amritsar Shimla Hyderabad airport connects 66 d
Slide 25: Non-aero future upside driven by consumption story
Non-aero future upside driven by strong consumption story 1 and customized theme based initiatives Promising growth fueled by favorable demographic and consumer factors1 Several Non-Aeronautical initiatives to capture demand Terminal 1 at DIAL witnessed 15% SPP growth in retail between Increasin
Slide 26: Track record and ADP partnership to win new airport bids
Proven track record and ADP partnership position GIL favourably to 2 win new airport bids across India and other emerging markets International opportunities with focus on fast growing emerging Immediately available growth opportunities in India markets 2.24 2.34 16.24% 16.24% 39 15.4 6 47.9 0.96x 0
Slide 27: Creating an asset light adjacency business platform
To expand presence across value chain, 3 GIL is creating an asset light adjacency business platform Transitioning from being a typical airport… Airport developer… development Airport and operations development and Current operations Adjacency … to expanding presence across value chain businesses Lon
Slide 28: Phased approach targeting own and external airports
…in a phased manner targeting opportunities across 3 both own network as well as external airports GIL platform growth strategy – significant progress made across all 3 phases Phase 3: External opportunities Phase 2: Own / network airports Expand presence to external and open market Phase 1: opportu
Slide 29: Value optimization from commercial business lines
Massive value optimization from commercial business 3 lines through a combination of models Consolidate all non-aero retail & services business Duty free under a single entity ✓Ability to cater to 30m international pax ✓Already operational external DF opportunity at Kannur Sub-contract services and
Slide 30: Thematic monetization of airport commercial land
4 Harness the potential of prime airport commercial land through thematic monetization (healthy mix of leasing and development) Revenue Self- Land lease Change in monetization strategy share development to 3rd party model with / BTS1 / developers developers Equity JVs (2018- (2009-2015) (2015-2018)
Slide 31: Key financials
Key financials Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 32: Robust track record of financial performance (US$)
Robust track record of financial performance with positive signs of recovery post Covid impact Consolidated Indian airports pax (m)1 DIAL & GHIAL non aeronautical revenue (US$m) Impacted by closure of Jet airways, Pakistan air 422 461 534 439 451 518 389 531 579 space and Covid [] Net Revenue2 (US$m
Slide 33: Robust track record of financial performance (INR)
Robust track record of financial performance with positive signs of recovery post Covid impact Consolidated Indian airports pax (m)1 DIAL & GHIAL non aeronautical revenue (INRbn) Impacted by closure of Jet airways, Pakistan air 34.8 38.1 44.0 36.2 37.2 42.8 32.1 43.8 47.8 space and Covid [] Net Reve
Slide 34: H1FY24 Results at a Glance
H1FY24 Results at a Glance Pax Traffic1 ATMs (‘000)1 Aero YPP2 Non-Aero IPP3 53.6 mn 339.2 INR 234 INR 350 ▲ 13% YoY ▲ 16% YoY ▲ 6% YoY ▲ 25% YoY EBITDA Net Debt4 Capex Total Income Progress5 INR 43.3 bn Delhi – 94.3% INR 17.3 bn INR 236 bn Hyd – 94.9% ▲ 28% YoY ▲ 38% YoY ▼ 6% YoY Crete – 25.7% 1Inc
Slide 35: Continued focus on strengthening balance sheet
Continued focus on strengthening balance sheet with stable leverage levels through fund raises, stake sales and divestments Partnership with NIIF2 Stake sold 41-49%1 1 Entity Goa Airport Entity GMR Airports Size ~US$76m Size US$1.3bn December Equity fund raise at Date Date February 2020 2022 platfor
Slide 36: Partnership, leadership and ESG
Partnership, leadership and ESG
Slide 37: Strategic partnerships with global majors
Proven track record of strategic partnerships with global majors to create synergistic advantages Strategic partnership with majority French government owned and Paris based Groupe ADP About Groupe ADP Investment Merits Strategic Rationale One of the largest airport Leverage Expertise groups in Euro
Slide 38: Best-in-class management team and governance
Best-in-class management team with strong corporate governance standards enhanced by Groupe ADP partnership Group Directors on GIL Board Key management and Board of Directors for Airports Srinivas Prabhakararao Antoine Crombez1 Bommidala Indana Director, GAL GM Rao Chairman, Energy CEO – Airports Gr
Slide 39: Strong commitment to sustainability through ESG framework
GMR Groups’ strong commitment to future sustainability through ESG framework Both DIAL and GHIAL are now ACI Level 4+ accredited Airports Learning and Development (Highest Level) 144 business organized training / corporate trainings Both the airports have adopted green building standards condu
Slide 40: Thank You
Humility | Entrepreneurship | Teamwork afi Relat s e i i i ect for individual
Slide 41: Annexures
Annexures Humility | Entrepreneurship | Teamwork afi Relationships e fe | Learning And Inner Excellence | Social Respofsibility | Reset for individuel
Slide 42: Evolution of the airport PPP model in India
Evolution of the highly successful airport PPP model in India Discussions Bangalore and AAI exploring Delhi and Mumbai between Hyderabad divestment of Plans to privatize airports’ stakeholders on airports’ AERA allows new residual stake in 25 airports in concessions concessions various awarded on ai
Slide 43: Two decades experience constructing and operating airports
Two decades experience of constructing and operating airports in various parts of the world Capabilities 2022 ✓ EPC ✓ Airport Operations ✓ Non-Aero Expertise ✓ Cargo Operations ✓ Master 2019 Medan Airport Concessionaire ✓ Aviation (Concession Academy Won) ✓ Advisory & ✓ MRO & Eng 2016–17 Nagpur* and
Slide 44: Growth Drivers in Place for Business Momentum
Growth Drivers in Place for Business to Gain Further Momentum Delhi Airport Monthly Pax Hyderabad Airport Monthly Pax Domestic ('000) Domestic ('000) 5,000 2,000 4,000 1,500 3,000 1,000 2,000 1,000 500 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov De
Slide 45: Detailed Corporate Structure Pre-Merger
Detailed Corporate Structure Pre-Merger GMR Airports Infrastructure Ltd (GIL)2 51%-59%1 41-49%1 Groupe ADP GMR Airports Ltd (GAL) India Outside India 64% 74%8 Delhi Airport Hyderabad Airport 100%6 Goa Airport Crete Airport, (DIAL) (GHIAL) (GGIAL) Greece 67%2 100% Duty Free (DDFS) Duty Free (GHRL)3 1
Slide 46: Detailed Corporate Structure Post-Merger
Detailed Corporate Structure Post-Merger GMR Promoters 33.7%1 32.3%1 GMR Airports 34.0%1 Groupe ADP Public Infrastructure Ltd (GIL) India Outside India 64% 74%8 Delhi Airport Hyderabad Airport 100%6 Goa Airport Crete Airport, (DIAL) (GHIAL) (GGIAL) Greece 67%2 100% Duty Free (DDFS) Duty Free (GHRL)3
Slide 47: Smart city IT solutions augment operations
Smart city IT solutions augment operations and boost underlying profitability Drivers Smart digital enablers 1 Direct benefits Passenger Experience Centralized monitoring Improve Passenger Experience and optimization Efficiencies & Savings Sensor Networks, Data Integration, Revenue Opportunities
Slide 48: Pioneer in adopting cutting edge IT / digital solutions
GIL has been a pioneer in adopting cutting edge IT / digital solutions and is in the league of renowned global airport operators Initiatives at GIL Passenger New Age Duty Free Aircraft Cargo Covid -19 Experience Technology Vertical MRO Vertical Measures ✓ E-Boarding ✓ New E-POS & ✓ 360 Degree ✓ AR /
Slide 49: Aero: DIAL - Regulatory Mechanism
Aero: DIAL - Regulatory Mechanism Hybrid-Till Regulatory Building Blocks Aero: DIAL - Regulatory Mechanism RAB x WACC + D + OM + T – S = TR 1 RAB 4 5 Opening project cost of airport determined by AERA with future capex attributed to aeronautical development Aero Tax Cross Subsidization 3 (T) by [30]
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