0 56 113

0 102 179

226 0 26

247 168 0 Investor Presentation 33 158 207 March 2017

0 DISCLAIMER

All statements, graphics, data, tables, charts, logos, names, figures and all other statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, 0 information (“Contents”) contained in this document (“Material”) is prepared by GMR Infrastructure Limited (“Company”) soley for the purpose of this Material and not expectations, estimates, and projections of the directors and management of the 56 otherwise. This Material is prepared as on the date mentioned herein which is solely Company about the business, industry and markets in which the Company and the 113 intended for reporting the developments of the Company to the investors of equity GMR Group operates and such statements are not guarantees of future shares in the Company as on such date, the Contents of which are subject to performance, and are subject to known and unknown risks, uncertainties, and other change without any prior notice. The Material is based upon information that we factors, some of which are beyond the Company’s or the GMR Group’s control and 0 consider reliable, but we do not represent that it is accurate or complete. difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are 102 Neither the Company, its subsidiaries and associate companies (“GMR Group”), nor not, and should not be construed, as a representation as to future performance or 179 any director, member, manager, officer, advisor, auditor and other persons achievements of the Company or the GMR Group. In particular, such statements (“Representatives”) of the Company or the GMR Group provide any representation should not be regarded as a projection of future performance of the Company or the or warranties as to the correctness, accuracy or completeness of the Contents and GMR Group. It should be noted that the actual performance or achievements of the 226 this Material. It is not the intention of the Company to provide a complete or Company and the GMR Group may vary significantly from such statements. All 0 comprehensive analysis or prospects of the financial or other information within the forward-looking statements are not predictions and may be subject to change without notice. 26 Contents and no reliance should be placed on the fairness on the same as this Material has not been independently verified by any person. This Material is not and does not constitute any offer or invitation or NONE OF THE COMPANY, THE GMR GROUP AND THE REPRESENTATIVES recommendation or advise to purchase, acquire or subscribe to shares and other 247 OF THE COMPANY AND THE GMR GROUP ACCEPT ANY LIABILITY securities of the Company or the GMR Group and not part of this Material shall 168 WHATSOEVER FROM ANY LOSS OR DAMAGE HOWSOEVER ARISING FROM neither form the basis of or part of any contract, commitment or investment decision 0 ANY CONTENTS OR OTHERWISE ARISING OUT OF OR IN CONNECTION nor shall be relied upon as a basis for entering into any contract, commitment or WITH THIS MATERIAL. investment decision in relation thereto. Prospective investors in the Company or the GMR Group should make its own investment decisions and seek professional This Material is published and available on the Company’s website advice including from legal, tax or investment advisors before making an investment 33 www.gmrgroup.in which is subject to the laws of , and is soley for information decision in shares or other securities of the Company or the GMR Group. 158 purposes only and should not be reproduced, retransmitted, republished, quoted or Remember, investments are subject to risks including the risk of loss of the initial 207 distributed to any other person whether in whole or in part or for any other purpose principal amount invested; past performance is not indicative of future results. or otherwise. REGULATORY AUTHORITIES IN THE UNITES STATES OF AMERICA, INDIA, Any reproduction, retransmission, republishing or distribution of this Material or the OR OTHER JURISDICTIONS, INCLUDING THE SECURITIES AND EXCHANGE Contents thereof in certain jurisdictions may be restricted by law and persons who COMMISSION AND THE SECURITIES AND EXCHANGE BOARD OF INDIA come into possession of this Material should observe such laws and restrictions if (“SEBI”), HAVE NEITHER APPROVED OR DISAPPROVED THIS MATERIAL OR any. DETERMINED IF THIS MATERIAL IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY MAY CONSTITUTE A CRIMINAL This Material and any discussions which follows may contain ‘forward looking OFFENSE. statements’ relating to the Company and the GMR Group and may include

1 Institutional Framework

Visionary Leadership - Building Institution For Perpetuity…

THE GROUP HOLDING BOARD

0 56 GM Rao Group Chairman 113

0 • Founder Chairman of the Group • Since 1978, he has successfully led the GMR group 102 creating infrastructure assets of national importance 179 • Holds a degree in Mechanical Engineering

P M Kumar 226 G Kiran Kumar Srinivas B V N Rao Chairman, 0 GBS Raju Corporate Bommidala Chairman, Urban Institution Chairman, Energy Chairman 26 Chairman, Airports Infra & Highways Building & & MD, GMR Infra Governance

247 • Held various managerial • Involved with the group since • Significant experience in leading • Over 40 years of experience • Over 45 years of experience in 168 positions in the GMR Group in 1996 projects and businesses in the • One of the founding Directors of several leading and diverse the past • Held various positions including infrastructure space the Group in 1988 organizations in senior 0 • One of the first Directors of the the group CFO in the past • Spearheaded the development • Has been associated with all leadership and consulting Group and Board Member since • Instrumental in establishing the of the T3 terminal at Delhi the businesses promoted by the positions 1996 roads business Airport group 33 158 INDEPENDENT DIRECTORS ON BOARD OF GMR INFRASTRUCTURE 207 R S S L N NC Sarabeswaran S Sandilya S Rajagopal C. R. Muralidharan Kameswari Vissa Bhaskarudu

• Ex- director of RBI • Ex- MD of Maruti • Chairman - Eicher • Ex-Chairman & MD • Ex- ED of Bank of • CA with over 24 and ING Vysya Udyog Limited Motors of , Baroda years of experience Bank • Served more than • Board member of comprising of two decades at Parry’s Sugar management BHEL Industries & Mastek consultancy and industry experience

3 A Feature Of Our Governance is The Group Performance Advisory Council, which Comprises Eminent Industry Leaders

A highly acclaimed business advisor, speaker, and author who has coached some of the world's most successful CEOs. Dr Ram Charan For 35 years, he's worked with companies like GE, Bank of America, DuPont, 3M,etc.

0 56 Retired IAS, with over 30 years experience in financial services and public sector enterprises. Served leadership positions 113 M Damodaran like Chairman SEBI (equivalent to SGX in S’pore, SEC in US), CMD IDBI Bank, Chairman UTI

0 102 Former CEO and Managing Director of Blow Plast / VIP Industries, Aditya Birla Nuvo, and Idea Cellular 179 Sanjeev Aga

226 Former MD & Chairman of SBI, Chairman of Indian banks’ association, Independent director and interim Chairman of Tata 0 O P Bhatt Steel 26

247 Founder / Co-founding member Indocean, CRISIL and HDFC. He has been in advisory roles to USAID, The World Bank 168 Pradip P Shah and The Asian Development Bank in the past 0

Former Chairman Ingersoll Rand. Previously held leadership positions with Kirloskar group. He serves on the advisory and 33 Daljit Mirchandani 158 statutory Board of various Companies 207

Dr. Sumantran is Executive Vice-Chairman of Hinduja Automotive. From 2001-05, he was chief executive of Dr V Sumantran Car business. Prior to this he had a 16-year career stint with GM in Detroit

Founder of IDFC Private Equity and served as its Chairman until 2011 and its Chief Executive Officer and President from Luis Miranda 2002 to 2010

4 We have approached Institution Building through Technology, People and Governance

2 Process & Governance 3 Technology 0 56 • Family Governance guided by • Centralized infrastructure and 113 Family Constitution ERP with real-time intelligence

0 • Management Assurance, Ethics, • Business automation with real- 102 Governance Council time war rooms, toll monitoring, 179 video audits, laser mapping • Group Performance Advisory Council (GPAC) • Process automation through ERP 226 and e-enabled shared services 0 • Business Excellence organization for back-office 26 transactions • Strategy & Risk Management

247 • Corporate Centre of Excellence 168 for processes – Procurement, HR, 0 Legal

33 158 1 People 207 • Vision, Values & Beliefs

• Leadership Development and talent Management

• Empowered Organization

5 Sustainability Initiatives - Airports

Delhi International Airport – T3 terminal GMR Hyderabad International Airport

0 56 113

0 102 179

226 0 26

247 168 0 • Awarded the prestigious Leadership in • T3 has been awarded the green building Energy and Environmental Design New “LEED INDIA GOLD” rating by IGB ( Indian Construction (LEED NC) SILVER rating by 33 158 Green Building Council) in Feb 2011, thereby US Green Building Council in Sep 2008 207 making it one of the largest Green Buildings in the world • Design leads to 25% saving in energy & 30% in water • First Carbon Neutral Airport in Asia Pacific region in Oct 2016, accredited by from • First in Asia to be LEED certified for its eco - Airports Council International (ACI) friendly design

6 Sustainability Initiatives - Energy

• All Operating Units are Integrated Management System certified (ISO 9001:QMS, ISO 14001:2004:Environmental Management System, OHSAS 18001)

0 Sustainable Features Aspects 56 113 Energy Efficient thermal power technology SUPER CRITICAL TECHNOLOGY 0 Renewable Energy SOLAR, WIND 102 179 Green Energy HYDRO ELECTRIC POWER

226 Cleaner Fuel technology NATURAL GAS 0 Addressing Global Issues SIX CDM PROJECTS 26

247 • GMR Energy Corporate 168 o Achieved best ever FY16 LTIFR 0.122 in Indian Power Sector 0 o Publishing Corporate Sustainability Report since 2013 vetted by a Big 4 firm o Adopted GRI G4 based SoFi – a Sustainability E-Tool, a product of M/s Thinkstep, Germany 33 158 • GMR Power Corporation Ltd., Chennai (200 MW) 207 o The GPCL Plant treats 7200 cubic metres of raw sewage per day from Chennai Metropolitan & Sewerage Board to produce 5400 cubic metres of clean water for its own use o The plant has received the renowned Dr. M.S. Swaminathan Award for Environmental Protection

Overall, GMR Group will be reducing 4.59 Million Metric tons of CO2e/ annum through its CDM Projects

7 Committed to “Giving Back To The Community" through GMR Varalakshmi Foundation

Mission of “To make sustainable impact on the human development of under-served GMR Varalakshmi 0 Foundation communities through initiatives in education, health and livelihoods” 56 113

Through Through 0 Our Four Pronged approach “Our Projects” “Personal Philanthropy” 102 179 • GMRVF works with communities • Family Tradition of “Giving back to Education wherever the Group has business society” 226 operations 0 Health, • 1991 - Formal foundation activities 26 Hygiene & • 25 locations in India & 2 in Nepal started from Rajam (A.P) in South Sanitation India GMR • One airports of GMR has been 247 Varalakshmi recognized as an example of Foundation • Group Chairman (GM Rao) has 168 “Reaching out to Bottam of Pyramid” pledged his entire individual 0 Community in the National Voluntary Guidelines shareholding in the Group to the Development for Responsible Business published Foundation by Ministry of Corporate Affairs 33 158 Livelihood • Family Constitution ensures donation by the family members to the 207 Foundation

8 Business Overview

GMR Group: Evolution And Key Milestones

Young Group – Less than 20 years old with a Balance Sheet of INR 672bn [USD 10.0bn]

• Chennai power • Hyderabad airport started • Terminal 3 of DIAL completed in • Divested stake in Island Power, • Raised INR 14.8bn [USD 220mn] via QIP, 0 plant started operations record 37 months Istanbul Airport, GMR Jadcherla and INR 14bn [USD 209mn] via Rights Issue & operations • Delhi Airport (DIAL) • Coal mines in Indonesia acquired GMR Ulundurpet USD 300mn via FCCB from KIA 56 • Two highways concession awarded • Sabiha Gokcen (Istanbul airport) • Warora & Kamalanga power projects • DIAL raised USD 289mn and USD 523mn 113 started operations • IPO successfully completed inaugurated started operation via international bond issues • Forayed into • Raised ~USD 1 bn via QIP • Raised ~USD 315 mn via QIP • Road projects started operation: • GMR Energy raised USD 300mn from airports with • Acquired 50% stake in • PE Investors invest US$300mn in Hyderabad Vijayawada, Hungund Tenaga for a 30% stake award of Intergen Power GMR Energy and US$330mn in GMR Hospet and Chennai ORR • Divested 2 Transmission assets and 3 Hyderabad airport Airports • Won concession to expand Cebu Highway projects 0 concession • Ambala Chandigarh toll road 102 started operations • Stake in Intergen Power divested for airport in Philippines • Adopted SDR for gas based USD 1.2 bn • Received favourable verdict (Jun’14) Rajahmundhry & coal based Chhattisgarh 179 • 5 power plants and 3 road projects from arbitration tribunal regarding power plants became operational termination of Male Airport • Won Mopa Airport, North Goa in Aug’16

226 0 26

247 Incorporation of 168 GMR 0 Infrastructure Ltd (GIL)

33 158 207 Consolidation Stablisation of Cash Flows Managing • Execution: Operationalise under Growth Phase Turbulence construction projects • All projects in Airport, Energy and Highway • Focus on attaining scale and • Raising of • Focus on operational sector fully operational rapid growth efficiency, returns & equity capital cash flow optimisation • No major investments required • Bidding for new projects and • Focusing on • Liquidity management • Assets stablisation would lead to positive commencing construction execution • Recycling of capital cash flows through divestments • Declared Investment holiday USD 1 = INR 67 10 Business Overview

AIRPORTS

~95 mn Passenger Capacity • 2 Airports in Delhi and Hyderabad • 1 Airport in Mopa, North Goa (recently awarded) • 1 Airport in Philippines : Mactan - Cebu Airport • Airport Land : 230 acres in Delhi, 1,500 acres in Hyderabad, 232 acres in Goa

ENERGY

~7,000 MW Power Generation Capacity • 3,350 MW of Coal Based Projects • 1,400 MW of Gas Based Projects • 180 MW of Hydro Projects – under construction • 1,800 MW of Hydro Projects – under development • 25 MW of Solar Project / 3.4 MW of Wind Power Projects • 4 Coal Mines – 2 each in India and Indonesia HIGHWAYS

7 Operational Projects • 4 Annuity Projects – 285 kms • 3 Toll Projects – 315 kms URBAN INFRASTRUCTURE

~13,800 Acres Land • 10,500 acres in Kakinada & 3,300 acres in Krishnagiri

11 Corporate Structure

FIIs 19.5% Shareholding Promoter & GMR Infrastructure Ltd as on Dec 31, Promoter Group MF & DIIs 7.9% 2016 61.7% Others 10.9% 0 56 97% 52%* 100%* 100% 113 GMR Airports Ltd GMR Energy Other Energy Assets GMR Highways Ltd Special Investment Region

0 Operational Projects Stake Operational Projects Stake Operational Projects Stake Annuity Projects Stake Projects Stake 102 Warora Plant (Coal) 100% Chhattisgarh Plant (Coal) 48% Tuni Anakapalli 100% Kakinada SIR 51% 179 Delhi International 64% Airport Kamalanga Plant (Coal) 87% Rajahmundry Plant (Gas) 45% Tambaram Tindivanam 100% Krishnagiri SIR 100% 226 Kakinada Plant (Gas) 100% Chennai Plant (Diesel) 51% Pochanpalli 100% Hyderabad 0 63% International Airport 26 Vemagiri Plant (Gas) 100% Wind Projects 100% Chennai ORR 90%

Solar Power Project 100% Mactan-Cebu 40% 247 International Airport 168

0 Under Development Project Under Construction / Development (Hydro) Coal Mines (Indonesia) BOT (toll) Projects

Bajoli Holi Project 100% Ambala Chandigarh 100% Mopa Airport, North PT Barasentosa Lestari 33 100% 100% Goa (PT BSL) 158 Alaknanda Project 100% Hyderabad Vijaywada 90% 207 Upper Karnali Project 73% Hungund Hospet ** 36% PT Golden Energy Mines 30% (PT GEMS) Upper Marsyangdi Project 82%

* Includes both direct & indirect holding ** Share Purchase Agreement signed to divest 51% stake; already transferred 15% in Mar’16

12 Airport Sector

GMR Airports: Assets

World class emerging markets airports

• World class airports - Aggregate capacity of ~95 mn passengers (Delhi, Hyderabad, North Goa and Cebu, Philippines) 0 56 • Emerging market focus - 3 Airports in India and 1 in Philippines 113

• Diversification of revenue streams - Besides revenue from aero related activities, airports also get revenue from non-aero activities such as cargo 0 handling, MRO, Duty Free, F&B, IT & Car Parking and also from Real Estate (CPD) at airport 102 179 Delhi International Airport

226 India’s Largest and 0 Busiest Airport 26 Shareholders GMR 64% AAI 26% 247 Fraport 10% 168 0 Mopa Airport Delhi Mactan Cebu International Airport Second Airport in Goa Hyderabad 33 Second Busiest Airport in 158 Shareholders Philippines 207 GMR 100% Philippines Shareholders GMR 40% Hyderabad International Megawide 60% Airport

India’s First Greenfield Airport

Shareholders GMR 63% GoAP 13% AAI 13% MAHB 11% 14 Airport Asset Details

Delhi International Airport Hyderabad International Mopa Airport Mactan - Cebu International Project (DIAL) Airport (GHIAL) North Goa Airport (MCIA)

0 Awarded in Operational and undergoing 56 Status Operational Operational 113 August 2016 expansion

Annual Passenger 0 62 mn 12 mn ~7 mn ** 16 mn # Capacity 102 179 • 25 years (from O&M start date) 30 + 30 years concession 30 + 30 years concession 40 years + 20 years • • • Upfront fees of USD 320mn + 226 Concession Terms (starting April 2006) (starting March 2008) (starting November 2016) • VAT 46% revenue sharing 4% revenue share 37% revenue sharing 0 • • • • Project cost of USD 750mn 26

230 acres Real Estate parcel • 1,500 acres Real Estate 247 Commercial 1st Phase development of 45 • • parcel 168 Property acres is completed 232 acres Real Estate parcel ~100 acres already • Development 2nd Phase of 23 acres • 0 • monetised awarded to Bharti Realty

33 Assured “Target Aero Revenue” every year, based on variables like approved project cost, WACC, Aero revenue based on pre- Revenue Structure • • 158 normative operations, etc. determined PSF 207

42.6 mn Pax; 11.2 mn Pax; 6.7 mn Pax; Traffic – 9MFY17 N.A. 311,446 ATMs* 96,316 ATMs* 54,148 ATMs*

48.4 mn Pax; 12.5 mn Pax; 8.0 mn Pax; Traffic – FY16 N.A. 365,696 ATMs* 106,303 ATMs* 64,900 ATMs*

*ATM = Air Traffic Movement # Post 1st phase of expansion ** Post completion of Phase 1 15 Airports: Cash Flows to Improve

Long awaited regulatory approvals to improve the profitability matrix

0 56 Delhi Airport Hyderabad Airport 113  DIAL’s tariff fixation assumptions (by AERA) under appeal  UDF collection started post DGCA notification restoring the collection of Airport Charges with effect from 05 Nov’15 0 • Appealed for cost of equity of 24% vis-à-vis currently 102 approved rate of 16% by AERA  GHIAL has submitted its tariff proposal for second control period starting 01 April 2016 179 • Appealed for return of 24% on real estate deposits (utilized to fund capex) vis-à-vis Nil return approved 226 by AERA 0 Note : Current tariff will continue till the final order of Tribunal 26

247 168 Delhi Airport - Refinancing existing debt to realign cash flows to repayment 0

• Delhi Airport raised ~USD 812 mn through two landmark issuance of International bonds 33 o In Jan’15, raised ~US$ 289 mn at 6.125% for 7 years 158 207 o In Oct’16, raised ~US$ 523 mn at 6.125% for 10 years. The transaction was the first 10-year High Yield USD bond transaction from an India incorporated Issuer in the 144A / Reg S format • Proceeds from bond issuances used to entirely refinance the outstanding Rupee Term Loan and External Commercial Borrowings o Resulted into a benefit of (a) lower interest cost and (b) bullet repayment instead of yearly repayments

16 DIAL Land Monetisation to unlock Higher Potential Returns

Flexibility in land usage – allows all commercial activities except residential

0 230 acres of Aerotropolis Development Aerotropolis Phase - I : 45 Acres of Hospitality District

56 • Awarded development rights for 45 acres through competitive 113 Commercial development at airport envisages • bidding development of an alternate commercial hub, right in the heart of NCR − Developable area of 6.12 msf 0

102 • Operations commenced for JW Marriott, Lemon Tree, Red Fox, 179 • Location lends dual advantage of central location with Holiday Inn, Ibis Hotel, Novotel and Pullman effective connectivity & proximity to demand − ~2,400 rooms are operational with an occupancy of ~75% 226 0 26 Total Land Parcel – 230 acres Aerotropolis Phase - II : 23 Acres of Retail District 247 Hospitality 168 District • Awarded development rights for ~23 acres to Bharti Realty 0 (45 acres) Holdings Ltd − Bharti to develop an ‘Integrated Retail Development Project’ 33 158 − Developable area of ~2.1 msf 207 Destination − Upfront payment of INR 3,150 mn (including RSD, ADC, Bid Retail Processing Fee) (23 acres) − Will receive License Fee equivalent to 20% of Revenues with Balance Minimum Guaranteed Payments Land (162 acres)

17 Energy Sector

Energy Assets

Fuel based capacity Capacity by stage Bajoli Holi Alaknanda Upper Marsyangdi Upper Karnali (180 MW / Hydro) (300 MW / Hydro) (600 MW / Hydro) (900 MW / Hydro) Others 0 228 3% Coal 56 Under Operational 3,370 development 4,639 48% 113 2,150 67% Natural Gas 31% 1,391 20% Under 0 construction Hydro 180 1,980 102 3% 28% 179 6,969 MW 6,969 MW

Solar Plant 226 (25 MW) 0 26 Kamalanga (1,050 MW / Coal)

247 Kamalanga (350 MW / Coal) 168 PT GEMS, Indonesia 0 (1.8 BT) Chhattisgarh (1,370 MW / Coal) PT Barasentosa Vemagiri 33 Lestari, Indonesia (388 MW / Gas) 158 (404 MT) 207 Warora (600 MW / Coal) Kakinada Legends: (235 MW / Gas) Operational Assets Chennai Projects Under Construction (200 MW / Diesel) Projects Under Development Rajahmundry Coal Mines (768 MW / Gas)

4,639 MW in operation and 2,330 MW under implementation

19 Revised Structure of GMR Energy

GMR Infrastructure Ltd 0 56 52%* 113 30% 18% Tenaga Nasional Private Equity GMR Energy Ltd Berhad Investors 0 102 179

Thermal Renewable Other Assets Excluded Assets 226 (Coal & Gas) (Hydro & Solar) 0 26 Warora Power Plant Bajoli Holi Project (Hydro Gujarat Power Chhattisgarh Power Plant Coal mines - (Coal - 600MW) - 180MW) (Solar - 25MW) (Coal – 1370MW) Indonesia

247 Kamalanga Power Plant Upper Karnali Project Rajahmundry Power Other Power 168 (Coal - 1,400MW) ** (Hydro - 900MW) Plant (Gas – 768MW) Assets 0 Kakinada Power Plant Upper Marsyagadi (Gas - 235MW) Project (Hydro - 600MW) 33 Vemagiri Power Plant Alaknanda Project 158 (Gas - 388MW) (Hydro - 300MW) 207

Operational Under Construction Under Development

* Includes both direct & indirect holding ** Kamalanga Power Plant includes 350MW of Unit 4 which is under development 20

Strategic Partnership with Tenaga Nasional Berhad

• Primary investment of $300m (~INR 20bn) by Tenaga Nasional Berhad in GMR Energy (GEL) for 30% stake Overview 0 on a fully diluted basis 56 113 • Portfolio includes 0 102 o Operational projects of 2,300 MW and 179 o Development pipeline of 2,330 MW Structure

226 • Tenaga has right to invest in Chhattisgarh and Rajahmundhry projects at the Fair Market Value (FMV) any time 0 within the next 5 year (subject to RBI guidelines) 26 • Indonesian coal mines is outside of GEL since Tenaga does not want to take exposure in commodities

247 168 0 GEL Valuation • Equity Value of USD 1 bn (~INR 67bn)

33 158 207 • Proceeds from the transaction is used to reduce corporate debt Key Terms & • All convertible instruments (Private Equity players) have been converted into equity shares Conditions • GMR remains the majority shareholder

USD 1 = INR 67 21 Partnership with Tenaga provides renewed impetus to Energy Business

0 Strong synergies from the strategic partnership with Tenaga 56 113 • Partnership between one of the largest integrated utilities and an established player in the Indian Power sector will be a force multiplier to create one of the most valuable companies 0 102 179 Strong Visibility on Cash Flows from Operational Portfolio

226 0 • GEL has over 80% of its capacity contracted under long-term PPAs ensuring high visibility of cash flows 26

247 Strengthening of the Balance Sheet 168 0 • Primary capital infusion strengthens GEL’s balance sheet through reduction of corporate debt • Convertible preference shares issued to Private Equity Investors converted into Equity 33 158 207 Attractiveness of GMR Energy from a value unlocking perspective

• Given the attractiveness of GMR Energy post the investment, it will have an opportunity to unlock value at an appropriate time

22 GMR Energy - Thermal Power Projects

Warora Kamalanga Vemagiri Kakinada – Barge Plant Project (Maharashtra) (Orissa) (Andhra Pradesh) (Andhra Pradesh) Fuel Coal Coal Gas Gas 0 56 Ownership 100% 86% 100% 100% 113 Capacity 600 MW 1,050 MW 388 MW 235 MW

Project Cost INR 40 bn [USD 597 mn] INR 65 bn [USD 970 mn] INR 11.5 bn [USD 171 mn] INR 6 bn [USD 90 mn] 0 102 CoD September 2013 March 2014 January 2008 June 2010 179 • 85% of power contracted through • 100% Regulated Tariff Power Off- Fully contracted long term long term PPA • • 23 years long term PPA (starting • 100% Merchant Tariff 226 take PPA’s • Plan to tie-up the remaining also Sept’06) with four state owned 0 through a long term PPA discoms in Andhra Pradesh 26 • Gas allocation from KG Basin (not getting gas since 2012-13) Confirmed linkage from Coal Confirmed linkage from Coal Gas allocation from KG Basin 247 Fuel Linkage • • • India Ltd. India Ltd. • Plant restarted post tie-up of gas (not getting gas since 2012-13) 168 supply through the RLNG 0 scheme

• Plant operated at 59% PLF till 33 FY’12 • PLF of 67% in 9MFY17 • PLF of 67% in 9MFY17 Plant operated at 57% PLF till 158 PLF • PLF in FY16 stood at ~18% FY’12 207 • PLF of ~76% in FY16 • PLF of ~67% in FY16 • • PLF of 12% in 9MFY17 • Refinancing of project loan • Refinancing of the project loan completed completed

Refinancing • Interest rate reduced by 110bps, • Interest rate reduced by 100bps, moratorium of 18 months and 15 moratorium of 30 months with years repayment period 16.5 years repayment period

USD 1 = INR 67 23 GMR Energy – Pipeline of Hydro Power Projects

Bajoli Holi Alaknanda, Upper Karnali Upper Marsyangdi Project (Himachal Pradesh) (Uttaranchal) (Nepal) (Nepal) Ownership 100% 100% 73% 82% 0 Capacity 180 MW 300 MW 900 MW 600 MW 56 • 30 years from generation license 113 • 40 years from CoD • 45 years from Implementation • 12% free power to NEA1 Concession Period • Royalty power to government: • 30 years from generation license Year 1-12: 12%; Year 13-30: 18%; Agreement • Free equity of 27% to Govt. of 0 Year > 30: 30% Nepal 102 Expected COD • FY19 • FY21 • FY20 179

• Financial Closure achieved in April • Approval from Govt. of Nepal • JDA7 with IFC8 2013 226 • DPR2 approved by CEA3 obtained for capacity enhancement • Approval from Govt. of Nepal Lenders of the project are IDBI 0 • • Environmental Clearance obtained • Survey license received obtained for capacity enhancement Bank and L&T Infra Finance 26 Current Status • Land fully acquired • CDM5 application under progress • Survey license received NTP issued to Gammon for civil • 6 works • Registered as CDM5 Project with • PDA signed with Govt. of Nepal • CDM application under progress UNFCC9 • Received consent letter from MEA • PDA under negotiation with Govt. 247 • Currently, ~40% of project is 168 completed for import of power from Nepal of Nepal 0

• Under Construction • Under Development • Under Development 33 • Under Development 158 • Run of the river power facility • Run of the river power facility • Run of the river power facility • Run of the river power facility 207 • Total Project Cost of INR 22bn • To give 13% of power generated • On a build – operate – own – Overview [USD 329mn] per annum to the state govt • Entire power generated, net of free transfer basis power, if any, to be supplied to the • INR 1.2bn [ USD 17.9mn] premium • Project currently on hold, due to a Government of Nepal, will be • Expected to provide 12% of power paid to the Govt stay order for all such similar exported to India to Nepal government, and the rest projects in the region to be exported to India

Notes: 1. NEA: Nepal Electricity Authority; 2. DPR: Detailed Project Report; 3. CEA: Central Electricity Authority; 4. MoEF: Ministry of Environment and Forests. 5. CDM: Clean Development Mechanism; 6. PDA: Project Development Agreement. 7. JDA: Joint Development Agreement 8. IFC: International Finance Corporation; 9. UNFCCC: United Nations Framework Convection on Climate Change

USD 1 = INR 67 24 Other Energy Projects

Raikheda Rajahmundry Project (Chhattisgarh) (Andhra Pradesh)

0 Fuel Coal Gas 56 Ownership 48% 45% 113 Capacity 1,370 MW 768 MW

0 Project Cost INR 124 bn [USD 1,855 mn] INR 49.4 bn [USD 737 mn] 102 November 2015 (Unit - 1) 179 CoD • October 2015 • March 2016 (Unit – 2) •

Long term PPA with Chhattisgarh TransCo for 5% of gross 226 • Signed short term PPA based on supply of gas through the capacity • 0 Power Off-take RLNG scheme 26 • Emerged as one of the lowest bidders for 500MW for long term PPA to state of UP • To enter into long term PPA based on sustainable gas supply

247 • Won the operational Talabira coal mine and Ganeshpur coal • Currently no long term gas supply contract in place 168 mine Fuel Linkage In the interim period, secured gas supply under e-bid RLNG 0 • • Coal mining at Talabira started from Aug’15 scheme from Oct’15 to Sept’16

33 158 PLF • PLF of ~26% in FY16 • PLF in FY16 stood at 20% 207 • Adopted “Strategic Debt Restructuring” Plan considering • Adopted “Strategic Debt Restructuring” Plan considering the absence of long term Fuel Supply Agreement and long the absence of long term Power Purchase Agreements term Power Purchase Agreements Others o Out of total debt (incl. accrued interest) of INR 88 bn, debt • Refinancing of residual project loan under RBI’s 5/25 scheme to the extent of INR 30 bn has been converted into equity completed o Consortium lenders would have 52% shareholding o Extended repayment period of 20.5 years (moratorium of 1.75 years) and interest rate reduced to 10.75% p.a.

USD 1 = INR 67 25 Coal Mines

Project Talabira mine Ganeshpur mine

Mine Location Sambalpur, Odisha Latehar, Jharkhand 0 56 Prior Allottee Limited & Adhunik Group 113 Upfront payment INR 540 mn [USD 8.1 mn] INR 1,090 mn [USD 16.2 mn]

Geological Reserve - 138 Mn Tons 0 102 Extractable Reserve 9 Mn Tons 92 Mn Tons 179 Mining Plan 3 Mn Tons p.a. 4 Mn Tons p.a.

226 Bid Price INR 478 /ton INR 704 /ton 0 Coal Quality Grade ‘F’ (3,600 kcal) Grade ‘G 11’ (4,200 kcal) 26 Strip Ratio 1.02x 1.39x

247 Distance from plant 296 kms 740 kms 168 Under development stage 0 Current Status Operational mine; Mining commenced from Aug’15 Would take 2-3 years to become operational

33 158 Project GEMS PTBSL 207 Mine Location Indonesia Indonesia

Ownership 30% 100%

Resources 1.77 Bn Tons 404 Mn Tons

Reserves 640 Mn Tons 142 Mn Tons

USD 1 = INR 67 26 Highway Sector

Highways Projects

All 7 Projects (600 kms) are Operational 4 Projects (285 kms) are Annuity based and 3 Projects (315 kms) are Toll based 0 56 Chandigarh-Ambala Highway – 113 GACEPL (35 kms)

0 Adloor-Gundla Pochanpalli Highway – GPEPL (103 kms) 102 Tuni-Anakapalli Highway – 179 GTAEPL (59 kms)

226 Hyderabad-Vijaywada Highway – 0 Hungund-Hospet Highway – GHVEPL (181 kms) 26 GOHHHPL (99 kms)

247 Tambaram-Tindivanam Highway – 168 GTTEPL (93 kms) 0

Chennai Outer Ring – 33 GCORRP (30 kms) Hyderabad 158 207

28 Highways Projects

Annuity Based Road Projects (285 kms) Toll Based Road Projects (315 kms) Project Name GTAEPL TTTEPL GPEPL GCORRPL GACEPL GHVEPL GOHHPL 0 Tambaram- Ambala- Hyderabad- Hungund- Location Tuni-Anakapalli Pochampalli Chennai ORR 56 Tindivanam Chandigarh Vijayawada Hospet 113 Shareholding 100% 100% 100% 90% 100% 90% 36%

0 Road Length (kms) 59 93 103 30 35 181 99 102 179 Nov-12*/May - CoD Dec-04 Oct-04 Mar-09 Jun-13 Nov-08 Dec-12 14

226 17.5 yrs from 17.5 yrs from 20 Yrs from 20 Yrs from 25 Yrs from Apr- 19 Yrs from Concession Period 20 Yrs from Jun-10 0 May-02 May-02 Sep-06 May-06 10 Sep-10 26

Divestment of Road Projects in line with Asset Light, Asset Right Strategy 247 Key Highlights 168 0 • Signed a Share Purchase Agreement to divest entire 51% equity stake in the Hungund Hospet project o 15% stake has been transferred to Joint Venture partner; balance stake to be transferred post receiving all approvals

33 o Divestment has reduced INR 10.8 bn of debt and would create INR 850mn of liquidity 158 207 • Divested remaining 26% equity stake in GMR Ulundurpet and GMR Jadcherla projects during FY2016-17 o Stake transferred post receipt of all approvals o Divestment created a liquidity of ~INR 1,045mn

29 Summing Up

Key Highlights – Over Last ~ 2 Years

Particulars

0 ‘Asset Light • Focus moved from Asset Growth to Cash Growth 56 Asset Right’ 113 Approach • Delivered on ‘Asset Light, Asset Right’ strategy

Divestments • Divested 8 large projects: 0 102 o 1 Airport: Sabiha Gocken International Airport (SGIA), Turkey 179 o 1 Power project: Island Power Project, Singapore o 1 Coal Mine: Eloff & Kendall Mines by Homeland Energy Group 226 o 3 Road projects: Jadcherla Expressway, Ulunderpet Expressway and Hungund Hospet Expressway 0 o 2 Transmission assets : Maru and Aravali 26 • Released INR 41 bn [USD 616 mn] equity and reduced liabilities by INR 76 bn [USD 1.13 bn] through divestments

247 168 Capital Raising • Total Equity & Equity-linked Capital Raised - INR 70 bn [USD 1.04 bn] 0 • Raised INR 48.8 bn [USD 728 mn] over the last ~2 years 33 o QIP of INR 14.8 bn [~USD 220 mn] 158 o Rights Issue of INR 14.0 bn [~USD 209 mn] 207 o FCCB of INR 20.0 bn [USD 300 mn] • Investment of USD 300 mn by Tenaga for a 30% stake in GMR Energy Ltd • Issuance of International Bonds: o USD 289 mn for Delhi International Airport at 6.125% for 7 years (Jan 2015) o USD 523 mn for Delhi International Airport at 6.125% for 10 years (Oct 2016)

USD 1 = INR 67 31 Key Highlights - Over Last ~ 2 Years (cont.)

Business Update Verticals

0 Energy • GMR Energy Ltd. - Renegotiation completed with Private Equity Investors; issued 18% stake 56 113 • Warora & Kamalanga - Both plants operating at high PLFs o Orissa PPA (Kamalanga) - Awarded a tariff increase of INR 0.65/unit to INR 3.4/unit 0 102 o Haryana PPA (Kamalanga) – Awarded favourable order w.r.t. ‘change in law’ and ‘coal cost pass-through’ 179 o MSEDCL & DnH PPA (Warora) - Awarded favourable order w.r.t. ‘change in law’ leading to an increase in the tariffs by ~INR 0.39/unit and ~INR 0.31/unit respectively 226 o Tamil Nadu PPA (Warora) - Commenced full supply of 150 MW from Dec’15 onwards 0 26 • Gas Auctions (RLNG scheme) - GMR won right to receive imported R-LNG for two of it’s power projects (Vemagiri & Rajahmundhry) 247 o Both Vemagiri & Rajahmundhry started operations during FY16 post winning gas supply 168 0 • Strategic Debt Restructuring o Rajahmundhry (Gas - 768 MW) – Converted INR 14.1 bn of debt into equity & issued shares to consortium lenders representing 55% stake in the project 33 158 o Chhattisgarh (Coal - 1,370 MW) – Converted INR 29.9 bn of debt into equity & issued shares to consortium lenders 207 representing 52% stake in the project • Refinancing of Operational projects - Group is refinancing the project debt to align the cash flows with repayment schedule. Already debt of Warora, Kamalanga & Rajahmundhry projects has been refinanced

• Divestment of Transmission projects - Sold 74% stake in Maru project and 49% stake in Aravali project to Limited (ATL) for a consideration of INR 1 bn

32 Key Highlights - Over Last ~ 2 Years (cont.)

Business Update Verticals

0 Airport • Delhi Airport (DIAL) - Raised USD 289 mn & USD 523 mn through an international bond issues 56 113 • DIAL Real Estate – Awarded development rights of 23 acres (~2.1 msf) for retail district to Bharti Realty • Hyderabad Airport – Restarted collection of User Development Fee (UDF) under ‘Hybrid Till’ methodology of 0 tariff determination; Submitted tariff proposal for second control period with AERA 102 179 • Mopa Airport, North Goa – GMR won right to develop & operate the Greenfield Airport in Mopa • Mactan Cebu Airport, Philippines – Construction ongoing for expanding capacity to 16 mn pax in Phase 1 226 0 • Maldives Airport - Awarded compensation of ~USD 270 mn by the international Arbitral Tribunal; Compensation 26 covers (a) debt, (b) equity with return of 17% & (c) termination payments & legal costs

247 168 Highways • Hungud Hospet project – Signed Share Purchase Agreement to divest 51% stake at a P/BV of 1.1x; 0 transferred 15% stake in Mar’16 • Tindivanam Ulundurpet project – Divested balance 26% stake to India Infrastructure Fund (IIF) 33 158 • Faruknagar Jadcherla project – Divested balance 26% equity stake 207 Urban Infra & • Kakinada SIR signed an MoU for 2,700 acres including that with GAIL, HPCL and Govt. of Andhra Pradesh EPC together to set up a cracker unit with a proposed investment of INR 400 bn [USD 6 bn] in 2,000 acres of land • GIL led consortium has won two packages of Eastern Dedicated Freight Corridor (DFCC) project worth INR 51 bn [~USD 758 mn] • In Jun’16, GIL led consortium won two more packages on the Eastern DFCC worth INR 23 bn [USD 340 mn]

USD 1 = INR 67 33 Key Financial Indicators (Consolidated)

Net Revenue (INR bn) Gross & Net Debt (INR bn) * Net Debt-to-EBITDA Ratio (x) 109.5 15.5 468.9 14.6 0 13.6 86.4 88.9 56 82.6 401.2 113 67.7 9.4

0 102 179

226 0 26 FY13 FY14 FY15 FY16 Gross Debt Cash & Net Debt FY13 FY14 FY15 FY16 equivalents

247 EBITDA (INR bn) Sector wise Debt breakup * Interest Coverage Ratio (x) 168 0 42.6 1.2 Corporate Airport 14% 22% 1.1 33 Others 158 5% 0.9 25.9 24.8 25.5 207 0.7

Roads 7%

Energy 52% FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 * As on 31 March 2016 34 Focus for next 12- 18 Months

Business Strategy

0 • Consolidate existing Energy & Highways projects 56 Capex holiday in Energy & Highway projects 113 • • Explore select profitable opportunities in the Airport sector 0 • Improvement in Operational Efficiencies across various projects and cost optimization 102 179 Financial Initiatives to Strengthen the Balance Sheet 226 0 26 • Focus on consolidation and strengthening of balance sheet through deleveraging • Continuous reduction of Corporate Debt 247 168 o Capital raising through IPO of Airport Assets 0 o Induction of strategic / financial partner in Airport holding company o Divestment of certain operational Energy / Highway projects 33 158 o Recovery of receivables from Energy Distribution companies, Airlines etc 207 • Refinancing of project debt through capital market (Bonds) / bank refinancing route to result into o Reduction of interest rate, o Projects getting longer moratorium and o Extending maturity of debt primarily to align the repayment schedule with the Cash Flows of the project

Focus on stronger Balance Sheet through financial innovation & better project performance

35 Summing Up – Strengths of GMR

 Experienced Leadership and Management teams duly guided by the Group Performance Advisory Council 0 56 113  Delivered world class assets in record time like Delhi and Hyderabad airport - Received various awards & recognitions 0 102 179  Capex phase complete; entered cash flow generation phase 226 0 26  Diversity across business segments – To ensure stability of cash flows 247 168 0 Continued focus on asset monetisation post value creation - Released INR 41 bn [USD 616 mn] equity and reduced  liabilities by INR 76 bn [USD 1.13 bn] through divestments over last ~2 years 33 158 207  Strong track record of raising capital - Total Capital Raised of INR 85 bn [USD 1.27 bn] since FY’12 (excl. divestments)

Government’s renewed focus on infrastructure and resolution of impediments to provide boost to GMR

36

USD 1 = INR 67 Thank You

For further information, please visit Website: www.gmrgroup.in or Contact: [email protected]