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Lanco Infratech Ltd
Investor Presenta>on
POWER EPC INFRASTRUCTURE SOLAR NATURAL RESOURCES
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Agenda
2
1 Company Overview
3 Industry Overview
4 Power Business
5 EPC Business
7 Natural Resource Business
8 Infrastructure Business
9 Property Development Business
10 Experienced Management Team
6 Solar Business
2 Financials
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1. Mission, Vision and Values
Mission: Development of Society through Leadership, Entrepreneurship, Ownership
Vision: Most Admired Integrated Infrastructure Enterprise
Values: Integrity
Humility & Respect
Achievement Drive Accountability
Continuous Learning
Teamwork Organization before Self
3 Positive Attitude
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1. India’s largest Integrated Power Developer
4
Infrastructure Property Development
Subsidiaries / Affiliates
Lanco Power Natural Resources Solar
Lanco Infratech Limited (LITL)
• Listed Holdco of the group • Promoters Holding ~ 68% • Adj. Net Worth US $443 mn (including Minority)
• All businesses of the group are under LITL • Power projects of 8,086 MW in 12 states of India (3,450MW* under opera>on & 4,636 under construc>on)
* 732 MW ge^ng ready for opera>ons
EPC Construc>on
Thermal Hydro Roads Lanco Hills EPC
GeneraSon
Manufacturing
All Coal and Gas based SPVs
All Hydro based SPVs
Assumed US$ / INR = 60
• Devihalli • Hosekote
• Griffin • Tasra
Coal
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2. Financials – P&L
Cash Profit: PAT + Depreciation + Profit Eliminated
Adj. PAT= Reported PAT + Profit Eliminated
* Revenue : Before intersegment revenue elimination
5
Note: 1. Assumed US$ / INR =60 2. Mn indicate million
US$ Mn
Revenue EBITDA
Adj. Profit Cash profit
2,567 2,549
1,813
1,228
‐
500
1,000
1,500
2,000
2,500
3,000
FY12 FY13 FY14 9MFY15
308
442
279 254
‐
50
100
150
200
250
300
350
400
450
500
FY12 FY13 FY14 9MFY15
114
‐178
‐381
‐241
‐500
‐400
‐300
‐200
‐100
‐
100
200
FY12 FY13 FY14 9MFY15
230
39
‐124
‐28
‐150
‐100
‐50
‐
50
100
150
200
250
FY12 FY13 FY14 9MFY15
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2. Financials – Balance Sheet
* Fixed Assets : Gross Block + CWIP
6 Note: 1. Assumed US$ / INR = 60 2. * As per AS‐21 / AS‐28
US$ Mn
Cash & Cash Equivalents
Key Balance Sheet Figures (as on Dec 31, 2014) Net Worth (including Minority Interest) 192 Add: Profit Eliminated (as per AS 21) 251 Adjusted Net Worth 443 Gross Debt (of company, subsidiaries & associates) 6,329
Gross debt of projects under opera>on 2,955 Gross debt of projects under construc>on 3,374
Cash and Cash Equivalent (including subsidiaries and associates) 90 Net Debt 6,239 Net Debt / Gross Adjusted Net Worth 14.10
Above debt figures excludes acquisition debt of Griffin and working capital loans of Power companies
Fixed Assets
5,901
6,439
6,782 6,890
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
FY12 FY13 FY14 9MFY15
235
97 101 90
‐
50
100
150
200
250
FY12 FY13 FY14 9MFY15
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3. Industry Overview a) Strong Push to Drive Infrastructure Growth
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XII Plan spending (FY13-FY18)
Source: World Bank Data 2010, (http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC)
Expenditure on Infrastructure is required to keep growth momentum of Indian economy
XII Five Year Plan expected target ~88 GW (as per draft document).
Per capita consumption of electricity
Total - US$1,126bn
Installed Power Capacity Growth (GW)
Source: Planning commission (XIIth five year Draft plan) (INR/USD:50)
105 108 113 118 124 132 143 148 159 174 200
288
100
150
200 250
300
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2017e
616
2944
0
500
1000
1500
2000
2500
3000
3500
India China
In BRIC countries, India’s per capita consumption lowest. China’s per capita consumption of power is 4.8x of India.
In order to achieve 8% growth, India should attain atleast 7% growth in total power sector.
300
64
194189
104
25
101
51 40
1830
12 -
50
100
150
200
250
300
350
Central State Private
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Per Capita Consumption Growth (Units)
3. Industry Overview b)Power Scenario in India
Source: CEA
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Source: CEA
Growing share of Private players Capacity Addition targets in the 12th Plan (MW)
Per capita consumption of electricity ~ growing at brisk pace
Recent Policy Ini-a-ves:
1. State Electricity Boards (SEBS) Financial Restructuring Package
2. Ini>a>ve by Government of India to allow pass‐through of addi>onal cost of imported coal supplied under FSA
3. Modifica>on to Case II standard bidding documents
591 613 632 672 717 735 779 819
879
2004 2005 2006 2007 2008 2009 2010 2011 2012
Type FY13 FY14 % Change
Thermal 761 792 4
Hydro 114 135 18
Nuclear 33 34 4
Bhutan Import 5 6 17
All India 912 966 6
Source: CEA
Electricity Generation during April 2013 to March 2014 (BUs)
Type/Sector Central State Private Total
Thermal 14878 13922 43540 72340
Hydro 6004 1608 3285 10897
Nuclear 5300 0 0 5300
Total 26182 15530 46825 88537
The 12th plan targets a capacity addition of 88,537 MW with 53% of the capacity being added by the private sector
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4. Lanco Power Business ‐ Project Status Update
9
Plant Fuel Capacity (MW) Oeake Anpara Coal 1,200 PPA Kondapalli I Gas 368 PPA Kondapalli II Gas 366 Short Term Kondapalli III* Gas 732 Short Term Amarkantak I Coal 300 PPA Amarkantak II Coal 300 PPA Tanjore Gas 120 PPA Other Renewable Wind, Solar, Hydro 64 PPA Total 3,450
* kondapalli III (732 MW) is getting ready for operations.
Power Projects under OperaSon
Plant Fuel Financial closure Capacity (MW)
oeake EsSmated compleSon
Lanco Ularanchal Hydro Y 76 Short Term FY 17
Teesta Hydro Y 500 PPA FY 17
Amarkantak III & IV Coal Y 1,320 Part PPA FY 17
Vidarbha Coal Y 1,320 Part PPA FY 17
Babandh Coal (Partly Cap>ve) Y 1,320 Part PPA FY 17
Solar Solar Y 100 PPA FY 17
Total 4,636
Power Projects under ConstrucSon
46% 52%
2% Fuel Diversification
Gas Coal Renewables including Hydro
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4. Power Business Presence Across Value Chain De‐risking the Business
Fuel (Coal mining) EPC Generation and O&M Trading
• Griff in coal, Coll ie region in Western Austral ia, currently produces 4 MTPA with resources of 1.2 bn
• Selected as MDO by SAIL for Tasra Open C a s t m i n e w i t h geological reserves of approximately 250 mn tons in Jharkhand. Includes development of a captive power plant as well.
• Completed projects with capacity of 4,732 MW
• 4,636 MW projects under construction
• St rong eng inee r i ng capability
• O v e r 1 0 y e a r s o f experience in design and development of Power Projects
• Handles global suppliers selection and sourcing of diverse materials like high-pressure fabricated e q u i p m e n t , s k i d s , i n s t r u m e n t a t i o n & electrical systems
• Operating capacity of 3,450MW*
• Kondapalli III (732 MW) is getting ready for operations.
• 4,636 MW projects under construction.
• One of largest private sector player in Indian power trading market
• Traded 333 mn units in quarter ended Dec 31, 2014
Transmission and Distribution
• St ra tegy i n c l udes possible expansion into transmission and distribution
Integrated presence across value chain capturing value addition across the businesses
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Type MW
Thermal & Gas 3,386
Renewable (Hydro, Solar, Wind)
64
TOTAL 3.450
* 732 MW ge^ng ready for opera>ons
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5. EPC Business: In‐house exper>se enhances margins
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Construction
Executing a wide range of projects spanning Thermal Power Plants, Hydro Power Plants, Highways, Airports, Industrial Structures, Transmission and Distribution, Chimneys and Cooling Towers, Water Infrastructure and Heavy Civil Structures.
EPC
EPC order book of USD 4.91 billion as on Dec’14 Major EPC / Construction order executed
Kondapalli 1,214 MW Udupi 1,200 MW Anpara 1,200 MW Amarkantak (I & II) 600 MW Tanjore Power 120 MW
Budhil 70 MW External orders under execution EPC of Moser Baer Thermal Power Plant (600 MW x 2) BoP of Koradi Thermal Power (3 x 660 MW) EPC of 250 MW Gas based Power plant in Iraq EPC of Supercritical Ennore Thermal Power Project (1*660MW)
EPC
Construction
Order Book (USD Mn)
Revenue (USD Mn)
5,117
4,383 4,363
4,910
3,600
4,000
4,400
4,800
5,200
FY12 FY13 FY14 9MFY15
1,445
724
376 189
‐
400
800
1,200
1,600
FY12 FY13 FY14 9MFY15
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6. Solar Scenario
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Addition of capacities: 2009 – 7.2 GW 2010 – 16.6 GW
Price decreases that have brought PV close to grid parity in several countries have encouraged new investors
Expected Growth in the market 3.3-4.8x of current capacity by 2015
Source: EPIA – Global Market Outlook for PV Until 2015
Glo
bal S
cena
rio
Indi
an P
ersp
ectiv
e
Source: MNRE - Renewable Energy in India: Progress, Vision and Strategy
Under the MNRE policy: New grid projects through NVVN Small grid projects through IREDA Off-grid solar
MNRE - Phase I Batch I 620 MW Batch II 350 MW
Gujarat 365 MW Rajasthan 200 MW
RPO requirement
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6. Solar Business: Fully Integrated Strategy enables lowest Rs/kWh
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EPC Project Development Integrated
Manufacturing
Target in 4 Yrs
500 MW/PA
Aim to be a Global player, as a developer and a third party EPC player. Current Solar EPC Order Book USD $ 468mn (included in EPC order book) Current Solar farm development portfolio – 141 MW (Operating 41 MW and Under Construction 100 MW)
400 MW/PA 250 MW/PA
Target in 3 Yrs
Manufacturing- Phase I
Capex US$ 180 Mm
Debt: Equity 70:30
Capacity- Phase I
Polysilicon 1250 MT
Wafer 80 MW
Module Line 50 MW
Policy Capacity (MW) Tariff- Rs/Unit Project Cost
(USD mm) PPA Duration
(Yrs)
Solar PV Farm
Gujarat Policy 35 Rs 15 for 12 yrs, Rs 5 for next 13 Yrs 89 25
JNNSM 5 11.5 14 25
RPSSGP 1 16.5 2.4 25 Solar Thermal Farm JNNSM 100 10.5 311 25
Foray into manufacturing to support internal requirements and reduce margin volatility, through the cycle
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7. Natural Resources (Coal):
Around 70% of demand from Power Sector
Uncertainty in domes>c supply
Expected Import of coal by 2017 > 150 MT
Increasing compe>>on for overseas assets
Limited opera>onal assets
DomesSc supply falls short of demand Securing coal: a need; an opportunity
14
431
457
493
533
533
540
575
795 464
504
549
582
625
640 773 98
1
0 200 400 600 800 1000 1200
FY07 FY08 FY09 FY10 FY11 FY12 Prov
FY13 BE FY17 BE
Produc>on Demand (inld middlings)
Source: Planning Commission (XII Plan draft document)
Tasra Open Cast Project (SAIL)
• Selected as Mine Developer and Operator (MDO) by Steel Authority of India (SAIL) for Tasra Open Cast Project and development of associated cap>ve power project.
• Located in Jharia coalfield of Dhanbad (Jharkhand) having geological reserves of approximately 250 million tons
• Se^ng up of coal washery and opera>on of power plant of 200‐300 MW capacity based on the secondary products arising from the proposed Tasra Washery.
Griffin Coal
Largest opera>onal thermal coal mines in Western Australia, with Resource base of 1.2 bn Tonne
Strategic loca>on – Bunbury port <100 km from mine
Good connec>vity of rail and port.
Current producSon :‐ capacity of 4 mtpa of coal.
Expansion : Plans to ramp up produc>on to a max of 18 MTPA by FY 18
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8. Infrastructure Business: Leveraging Construc>on Exper>se to Build Infrastructure
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Lanco has moved into selective infrastructure projects to leverage its EPC experience
Awarded two NaSonal highway projects in Karnataka
c. 81 km stretch connec>ng Bangalore – Hoskote – Mudbagal
c. 82 km stretch connec>ng Neelamangla – Devihalli
Concession periods of 20 years and 25 years respec>vely during which toll will be collected
Capex of USD $ 308 mn
Grant from NHAI USD $ 60 mn
COD of Devihalli alained on June 25th 2012 and toll collec>on started
COD of Hoskote alained on December 19th 2013 and toll collec>on started
Also built jetty at Mangalore port for Udupi Power Plant
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9. Property Development Business
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Lanco Hills is the group’s foray into property development, located in Hyderabad, spread over 100 acres and comprises residential space, office space and IT SEZ
Lanco Hills
Residential • Towers under Phase I are ready for occupation, 97% units sold out, 63% occupied • In addition to high rise towers, 56 Villas will also be constructed
Office space • IT tower - 0.59 mn sqft ready for occupation, lease deed signed for 80,000 sqft. • SEZ : 0.06 mn sqft incubation space – leased out to IT companies
Property Development is restricted to Hyderabad only
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10. Experienced Management Team
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L. Madhusudhan Rao
Execu&ve Chairman
G. Bhaskara Rao Execu&ve Vice Chairman
L Sridhar Vice Chairman
G. Venkatesh Babu Managing Director
P. Abraham Director
LANCO Board
U.K. Kohli Director
Finance Power
Lanco Group Senior Management Team
T. Adi Babu T N Subramanian
P. Panduranga Rao K. Raja Gopal
ConstrucSon & EPC
S. C. Manocha
Solar
Rajkumar Roy
S. C. Manocha Director
R. Krishnamoorthy Director
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Pan India Presence
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Chitradurga
Tanjore power
Amarkantak – I & II Amarkantak – III & IV
Kondapalli I & II Kondapalli III
Teesta
Lanco Uttaranchal
Anpara
Babandh
Lanco Hills
Plants under construction
Plants under operation
Plants under construction
Plants under operation
Plants under construction
Plants under operation
Property development
Road development
Vamshi
Vamshi Industrial
81 km Bangalore – Hoskote – Mudbagal 82 km Neelamangla – Devihalli
Coal Based
Hydro
Gas
Wind
Registered office
Corporate Office
Hyderabad
Gurgaon
Coal mine
Vidarbha
Plants under operation
Solar
Solar Power Plants Manufacturing at Rajnandgaon- Chattisgarh
Gujarat Solar
Rajasthan Solar
Tasra mine
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We care for the world we live in
Lanco Foundation
• Member of the UN Global Compact
• Operating in 11 Indian States at 13 locations
• Covering 140 villages & 200,000 population beneficiaries
• we have a number of initiatives in place that help us to make a difference…
• Focused work in the areas of:
Disability
Education
Safe Drinking water
Mobile Health Services
Support of traditional arts & crafts
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Recent Awards
Lanco Amarkantak wins “Greentech Safety Award 2013” in Gold category in Thermal Power sector
Lanco Anpara wins “PowerLine Award” for the Best Thermal Project
Lanco Amarkantak wins “Golden Peacock Occupational Health & Safety Award” for the Year 2013
Lanco Solar Wins “IESA Award For Most Innovative Product” for 2012
Lanco Kondapalli Wins “Golden Peacock Environment Management Award for corporate Social responsibility” for 2012
8th Construction World- Annual Award for “Fastest Growing Construction Company”
Tanjore Power received TERI Corporate Award for “ Environmental Excellence and Corporate Social Responsibility”
Tanjore Power received GreenTech silver award in Power sector for “Safety Management”
IKU II received IEEMA award for “Excellence in Fast Track Commissioning of Small Hydro Projects”
Lanco Infratech Ltd received PRSI Golden Jubilee Award for the “Most Impressive Public Relations Initiatives”
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Disclaimer
No representa>on or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the informa>on or opinions contained in this presenta>on. Such informa>on and opinions are in all events not current arer the date of this presenta>on. Certain statements made in this presenta>on may not be based on historical informa>on or facts and may be "forward looking statements" based on the currently held beliefs and assump>ons of the management of the Company, which are expressed in good faith and in their opinion reasonable, including those rela>ng to the Company's general business plans and strategy, its future financial condi>on and growth prospects and future developments in its industry and its compe>>ve and regulatory environment.
Forward‐looking statements involve known and unknown risks, uncertain>es and other factors, which may cause the actual
results, financial condi>on, performance or achievements of the Company or industry results to differ materially from the results, financial condi>on, performance or achievements expressed or implied by such forward‐looking statements, including future changes or developments in the Company's business, its compe>>ve environment and poli>cal, economic, legal and social condi>ons. Further, past performance is not necessarily indica>ve of future results. Given these risks, uncertain>es and other factors, viewers of this presenta>on are cau>oned not to place undue reliance on these forward‐looking statements. The Company disclaims any obliga>on to update these forward‐looking statements to reflect future events or developments.
This presenta>on is for general informa>on purposes only, without regard to any specific objec>ves, financial situa>ons or
informa>onal needs of any par>cular person. This presenta>on does not cons>tute an offer or invita>on to purchase or subscribe for any securi>es of the Company by any person in any jurisdic>on, including India and the United States. No part of it should form the basis of or be relied upon in connec>on with any investment decision or any contract or commitment to purchase or subscribe for any securi>es. The Company may alter, modify or otherwise change in any manner the content of this presenta>on, without obliga>on to no>fy any person of such change or changes. This presenta>on may not be copied or disseminated in any manner.
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