Mep Infrastructure Developers Limited
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MEP INFRASTRUCTURE DEVELOPERS LIMITED Q1 FY16 & FY15 Results Update August 2015 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 operations, financial condition, business prospects, plans and objectives are based on the current beliefs, assumptions, expectations, estimates and projections of the management of MEPIDL about the business, industry and markets in which MEPIDL operates. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond MEPIDL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and should not be construed as a representation as to future performance or achievements of MEPDIL. In particular, such statements should not be regarded as a projection of future performance of MEPIDL. It should be noted that the actual performance or achievements of MEPIDL may vary significantly from such statements. 2 Table Of Contents Company Overview Sustainable Competitive Advantages Understanding Our Business Model Q1 FY16 & FY15 Results Update 3 Company Overview Company Overview: Brief Profile Leading Player In Toll Collection & OMT Projects . MEPIDL is the leading playerinOMT and Toll Collection inIndia (1). Commenced operations in2002 - toll collection at the five Mumbai Entry Points for8 years. Progressed into winning one of the largest OMT contracts at the Mumbai Entry Points – toll collection at the five Mumbai Entry Points and maintenance of 27 flyovers and certain allied structures inMumbai fora period of 16 years until 2026. Strong Execution Experience Strong Qualifications & Capabilities . Successful operational experience of over13 years. Pre-qualified by NHAI and various statutory . Pan Indiapresence across 12 states. corporations and government companies for Bidding . Executed more than 100 projects. in Tolling and OMT Space. Completed 82 projects including 141 toll plazas and . Strong relationships with various statutory and 907 lanes. government companies, primarily NHAI, MSRDC, . 21 projects were operationalas on 30th June 2015 – RSRDC, RIDCOR, MJPRCL and HRBC. 14 long term and short term toll collection . Strong promoter and management team capabilities. projects (25 toll plazas) in10 states. Strong workforce as on 30th June 2015 – . 1 long term toll collection project of Delhi Entry . ~ 3,300 employees in Tolling and maintenance Points with 124 toll plazas (Company operating 70 activities. plazas). ~ 1,100 contract workforce at various toll plazas. 5 long term OMT projects (covering 2,530 lane kms and 15 toll plazas). 1 long term BOT project (covering 42 lane kms and 5 toll plazas. (1) Source: Assessment of Operate-Maintain-Transfer (OMT) and Toll Collection Market for Road Projects in India” dated June 2014 , by CRISIL Limited. BOT – Build Operate and Transfer, OMT - Operate Maintain and Transfer, NHAI – National Highways Authority of India, MSRDC – Maharashtra State Road Development Corporation Limited, RIDCOR – Road Infrastructure Development Company of Rajasthan Limited, RSRDC - Rajasthan State Road Development & Construction Corporation Limited, HRBC – Hooghly River Bridge Commissioners, MJPRCL - Mumbai – JNPT Port Road Company Limited 5 Company Overview: Key Milestones . Awarded a 3-year OMT . Crossed Rs 10,000 mn of revenue in a single financial year contract by MSRDC for Rajiv (FY12) for the first time. Awarded the Phalodi Ramji toll Gandhi Sea Link in Mumbai. collection contract in Rajasthan . Awarded Hyderabad-Bangalore OMT contract for 9 years . Awarded the Rajiv Gandhi by RIDCOR for a period of 5 and toll collection project in Rajasthan by NHAI. Salai project by ITEL, Kini 2015 years. Launched Electronic Toll Collection at the Rajiv Gandhi Tasawade project by MSRDC 2014 . Started toll collection pursuant Sea Link. and Surajbari Project by to contracts with NHAI across . First project by NHAI in Rajasthan for toll collection at the NHAI. multiple states in India. Paduna Toll Plaza. Awarded the Mumbai Entry Points Projects on OMT basis for 16 years with an upfront payment of Rs 21,000 mn. 2012 2013 Started collection of toll at . Listed on BSE and NSE on 6th May, 2015 with the five Mumbai Entry 2010 Points for 8 years from an IPO of Rs 3,240 mn. 2011 December 2002. Awarded a 9 year OMT . A consortium formed contract by NHAI for by the Company, was Chennai Bypass and awarded 2 projects by Madurai-Kanyakumari IHMCL for providing 2009 projects in Tamil Nadu. toll management services. Acquired BTPL BOT project in . Awarded the IRDP Solapur Maharashtra for Rs 10.1 mn. A consortium formed 2002 and Kalyan Shilphata projects by MSRDC, Mahua by the company ,was Hindaun Karauli project by awarded project by Started collection of toll at the Rajiv RSRDC and Vidyasagar Setu SDMC for collection of Gandhi Sea Link toll plaza from July project by HRBC. Toll at border points of 2009 until February 2014. New Delhi. MSRDC – Maharashtra State Road Development Corporation Limited, SDMC- South Delhi Municipal Corporation 6 Company Overview: Diversified Project Portfolio With Pan India Presence Current Portfolio Across Ten States In India Project Mix as on 30th June 2015 Long Short Location OMT Term Term BOT Total Toll Toll Maharashtra 2 3 - 1 6 Tamil Nadu 2 1 1 - 4 Telangana - - 1 - 1 Karnataka - - 1 - 1 Rajasthan - 1 1 - 2 Gujarat - - 1 - 1 Uttar Pradesh - - 2 - 2 West Bengal - 1 1 - 2 Andhra Pradesh 1 - - - 1 Delhi - 1 - - 1 Total 5 7 8 1 21 Company’s ability to manage multiple projects across different geographies provides a significant advantage to efficiently manage its growth and expansion 7 Company Overview: Long Term OMT Projects Madurai – Kanyakumari Hyderabad - Bangalore Chennai Bypass Rajiv Gandhi Sea link Mumbai Entry Points Four lane carriageway Four lane carriage way Six lane carriageway that Links Bandra in the Five entry points located on located on NH-7, which is located on NH-7, passes links NH-45, NH-4, NH-205, Western Suburbs of . Sion–Panvel Highway, a major highway running through industrial districts NH-5 & provides Mumbai with Worli in . Western Express through U.P, M.P, such as Kurnool and connectivity to the two ports South Mumbai Highway Description Maharashtra, Andhra Anantapur in Andhra of Chennai i.e. Chennai port . Eastern Express Pradesh, Karnataka & Pradesh & Ennore port Highway, Tamil Nadu . LBS Marg and . Airoli Bridge corridor in Mumbai SPV RTRPL MEP HB MEP CB MEP RGSL MIPL Authority NHAI NHAI NHAI MSRDC MSRDC Company’s stake 100.00% 98.90% 100.00% 100.00% 99.99% State Tamil Nadu Andhra Pradesh Tamil Nadu Maharashtra Maharashtra COD 22nd September 2013 16th May 2013 14th May 2013 6th February 2014 20th November 2010 Tenor 9 years 9 years 9 years 3 years 16 years No. of Toll plazas Four Three Two One Five Rs 1,108.7 mn for the first Rs 1,059.3 mn for the first Rs 1,530 mn for the first year Rs 690 mn for first year of Upfront Payment of Rs year of the concession year of the concession of the concession period concession period along 21,000 mn period with 10% period with 10% escalation with 10% escalation every with an additional one escalation every year to every year to be paid in 12 year to be paid in 12 equal time payment of Rs 5 mn. Amount Paid to be paid in 12 equal equal monthly instalments monthly instalments The annual payment is Authority monthly instalments subject to 10% escalation for second year & 20% for third year, to be paid in 12 equal monthly instalments Projects are located in major cities or on the road connecting major metropolitan cities of India U.P – Uttar Pradesh NH – National Highway M.P – Madhya Pradesh LBS - Lal Bahadur Shastri Marg 8 Company Overview: Long Term Toll Collection Projects Rajiv Gandhi Phalodi Ramji IRDP Solapur Vidyasagar Setu Kini Tasawade Kalyan Shilphata(1) Delhi Entry Points Salai(1) Project is a 229 Located in Solapur 18 lane toll plaza at Located on Previously known Connecting km long corridor district Vidyasagar Setu,links Satara – as the IT corridor Mumbai Pune 124 Entry Points of that passes Howrah to Kolkata Kolhapur section Highway (NH-4) at Delhi Description through Jodhpur of NH-4 Shilphata & and Barmer, Mumbai - Nashik connects to Highway (NH-3) at Kandla port Bhiwandi SPV RVPL MEP Solapur RTBPL RTIPL NA NA SMYR Consortium Authority RIDCOR MSRDC HRBC MSRDC ITEL MSRDC SDMC Stake 100.00% 100.00% 100.00% 100.00% NA (1) NA (1) 25.00% State Rajasthan Maharashtra West Bengal Maharashtra Tamil Nadu Maharashtra New Delhi 17th September 27th September COD 2nd January 2013 1st September 2013 29th May 2014 8th March 2014 16th May 2015 2010 2013 Tenor 5 years 3 years 5 years 2 years 3 years 3 years 3 years No. of Toll Four Four One Two Five Two 124 Entry Points plazas Rs 2,035.07 mn Rs 208 mn, to be Rs 2,610 mn to be Rs 2,270.7 mn, Rs 14.62 mn for Rs 633.6 mn, to be Rs.105.99 mn , to consisting of paid in three equal paid in five equal to be paid in the first year with paid in upfront be paid on weekly upfront payment annual instalments annual instalments upfront monthly escalation of 5% monthly Basis of Rs 1,500 mn consisting of upfront instalments per annum during instalments Amount paid and payment of payment of Rs 522 mn each subsequent to Authority Rs 535.07 mn in and payment of year for a period 60 monthly remaining amount in of two years instalments four equal instalments in advance (1) MEPIDL is the concession oper ator for the pr oject 9 Company Overview: Short Term Toll Collection Projects Sr.