Reliance Infrastructure Ltd.

Transcription

1 Reliance Infrastructure Ltd. Investor Presentation February, 2010

2 Forward looking statements Important Note This presentation and the discussion that follows may contain forward looking statements by Reliance Infrastructure that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of Reliance Infrastructure about the business, industry and markets in which Reliance Infrastructure 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 Reliance Infrastructure 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 Reliance Infrastructure. In particular, such statements should not be regarded as a projection of future performance of Reliance Infrastructure. It should be noted that the actual performance or achievements of Reliance Infrastructure may vary significantly from such statements. 2

3 Business Overview Power Business EPC Business Infrastructure Business Generation Transmission Distribution Trading Power Sector Road Sector Roads Metros Airports Real Estate/ SEZ s 3

4 Reliance Infrastructure Ltd. New Structure Mumbai Metro Line 1 (69%) Delhi Airport Metro Express Link (95%) Mumbai Metro Line 2 (48%) Reliance Infrastructure EPC + Investments (Listed Company) 45% Fuel Assets Reliance Power Reliance Cementation CBM (45%) Oil Blocks (70%) Coal Field (100%) Cement Business 100% BSES Kerala Power Ltd Reliance Energy Generation Ltd (Dahanu) Reliance Power Transmission Ltd Reliance Energy Ltd Reliance Energy Trading Ltd Reliance InfraVentures Ltd Reliance Property Developers Ltd 100% Reliance Goa & Samalkot Power Ltd Transmission projects Mumbai Distribution (100%) Delhi Discoms (49%) Energy Trading Road Projects Real Estate 5 roads in Tamil Nadu SEZ GF Toll Road Jaipur Reengus Pune Satara Gandhidham Mundra Port 5 Airport projects Maximise growth and profitability through focused leadership and management attention 4

5 Power Business

6 Power Generation Parameter Capacity Type Off-take Arrangements Dahanu Power Station 500 MW Thermal Mumbai Discom Samalkot Power Station 220 MW Combined Cycle Andhra Pradesh Grid Goa Power Station 48 MW Combined Cycle Goa Grid Kerela Power Station, 165 MW Naptha Kerela State Electricity Board Wind Farm, Karnataka 8 MW Wind Karnataka Power Transmission Corp. Ltd Dahanu Station running at PLF of ~100% from last 6 yrs Samalkot Station running at PLF of ~90% since December 09 Outperformance of norms leading to high ROEs Operate one-of-the-most efficient thermal plants of India 6

7 Future Power Generation through Reliance Power.. R Infra owns 45% of R Power Reliance ADA Group s GENCO, to develop all future power generation assets in India and overseas Develop, construct and operate 33,780 MW of generating capacity Diversified portfolio of 16 projects consisting of Coal, Gas & Hydroelectric power based projects across India Aggregate Investment in R Power of Rs 17.2 Bn Current Market Value of Rs 162 Bn* appreciation of over 10 times Embedded Value of ~ Rs 720 per share * R Power Market Rs 150/- Largest private power generation portfolio in India 7

8 Reliance Power Ltd Pan India Presence Urthing Sobla (400 MW) Dadri (7,480 MW) Siyom (1,000 MW) Tato II (700 MW) Kalai II (1,200 MW Amulin (420 MW) Emini (500 MW) Mihundon (400 MW) Type Domestic coal Imported coal Gas based Capacity 13,680 MW 5,200 MW 10,280 MW Hydroelectric 4,620 MW Rosa Phase I (600 MW) Rosa Phase II (600 MW) Regional Grid Capacity North 9,080 MW Shahpur Coal (1,200 MW) Shahpur Gas (2,800 MW) Tilaiya UMPP (3,960 MW) West South 12,520 MW 4,000 MW East 3,960 MW Sasan UMPP (3,960 MW) Chitrangi (3,960 MW) North East 4,220 MW Butibori (600 MW) Krishnapatnam UMPP (4,000 MW) 33,780 MW of power generation portfolio 8

9 Power Transmission Project Name Western Region Strengthening Scheme (WRSS) Transmission lines in Parbati & Koldam, HP Strengthen Mumbai Transmission Network Project Type Competitive Bidding Regulated Regulated Project Cost Rs 13.8 Bn Rs 10.8 Bn Rs 18.0 Bn Erection of 80 towers completed Most of the hardware received Revenue to commence from Q1FY11 for 6 out of 9 subprojects Indemnification agreement signed with NHPC Acquired sanctions for complete debt from PFC & REC Revenue to commence from Q1FY13 Schemes under implementation Revenue commencing from FY10 and project fully operational by FY12 Shareholding 100% 74% 100% Update R Infra is the largest private player in transmission sector 9

10 Ultra Mega Transmission Projects Emerged preferred bidder in 2 out of 3 UMTP s Project Name Project Type Project Cost Share-holding Update North Karanpura Competitive Bidding Rs 16 Bn 100% Preferred Bidder, LOI awaited Talcher - II Competitive Bidding Rs 9 Bn 100% Preferred Bidder, LOI awaited Total transmission projects of over Rs 68 Bn 10

11 Opportunities Ahead Projects Mumbai Transmission 7 Projects at RFQ Stage Standalone Central Projects Standalone State Projects Captive Projects Total Project Cost (Rs Bn) Leadership position would play key role in emerging opportunities 11

12 Power Distribution Mumbai Serves 2 out 3 homes in Mumbai & Delhi Serve over 5.2 million customers Distributes over 5,000 MW of power Largest private sector distributor of power 12

13 Mumbai Distribution Distributing power to over 2.7 million customers 1,480 MW of peak demand Adding 0.1 million customers every year Among the lowest AT&C loss levels in the Country AT&C losses of <11% Reliability of 99.95% Continuous upgradation and modernization undertaken Yearly investment of ~Rs 5 bn Only utility without need for Invertors, Stabilizers and Generators Technology driven organization Awarded Best Utility for Excellence by IEEMA 13

14 Delhi Distribution BSES Rajdhani Power Limited AT & C Losses (%) AT & C Losses (%) BSES Yamuna Power Limited Incentive of Incentive of Rs 0.59 Bn Incentive of Rs 0.77 Bn Privatised in 2002 R Infra own 49% in both discoms Distributing power to over 2.56 million customers 2,630 MW of peak demand AT&C loss reduction of ~35% In BRPL from 51% to 21% In BYPL from 63% to 24% Discoms have invested Rs 34 Bn till date Delhi Govt. saved Rs 200 Bn over last 7 years of privatization Rs 0.58 Bn Earned Incentive of Rs 1.36 Bn in FY09 & expected to remain in incentive zone in FY10 Achieved Target Delhi success would lead to more private participation initiatives. 14

15 IT Initiative under R-APDRP* programme Empanelled under R-APDRP* Scheme as IT Consultant IT Implementation Agency SCADA/DMS consultants Providing IT consultancy to Karnataka State Electricity Board for 5 distribution circles Bidding for IT implementation in following states: 1. Andhra Pradesh 2. Maharashtra 3. Punjab 4. Tamil Nadu 5. Chattisgarh * Restructured Accelerated Power Development and Reform Programme Total Opportunity of Rs 100 Bn 15

16 Opportunities Ahead - Distribution Distribution Franchisee is recognized as a way forward in power distribution business Several states have initiated process under Franchisee model States Uttar Pradesh Maharashtra Haryana Madhya Pradesh Total No. of Circles Project Size (Rs Bn) Pursuing profitable opportunities in the space 16

17 Reliance Energy Trading Ltd Number of units traded (in MU s) 2,237 Traded 2,237 MU s till Dec 09 in FY10 1,934 Tied up with merchant and captive power plants for assured trading of 60,000 MU s during 25 years Integration with generation capacity of R Power & captive distribution businesses 1,022 Achieved volume growth of over 100% in less than 2 years FY08 FY09 YTD Dec 09 Among the top 3 private players in trading market 17

18 EPC Business

19 EPC Business Order Book of over Rs Bn R Power & Internal Power project: Rs Bn 3,960 MW Sasan UMPP 300 MW Butibori group CPP^ Western Region Strengthening project, Maharashtra and Gujarat External: ~Rs 33.5 Bn 1,200 MW Raghunathpur TPP* 1,200 MW Rajiv Gandhi TPP* at Hisar 500 MW Parichha TPP* BOP package Road Project : GF Toll Road: Rs 5.0 Bn Power projects under construction of over 7,200 MW Dedicated manpower strength of over 1,550 * Thermal Power Project ^ Captive Power Project 19

20 EPC Business - Highlights EPC Projects Status Hisar Power Plant Butibori Power Plant Sasan UMPP Raghunathpur Power Plant Gurgaon Faridabad Road WRSS Transmission Line Syncronized Unit 1 in December 09 a record of 33 months First ever 600 MW unit executed in country Shell Concrete Casting of Chimney upto 23 mtrs height is completed Boiler Foundation work nearing completion Raft work of Chimney is completed 2,230 MT & 907 MT structure erection of Boiler Unit 1 & 2 is completed All sub-contract work are awarded and complete mobilization of resources is done Foundation work in full swing and erection of towers initiated 20

21 EPC Business Major Initiatives Signed MOU with Black & Veatch, USA Developing largest center for engineering excellence in India for engineering consultancy Mentoring support to projects based on Super Critical Technology Remote surveillance of project sites Developing competencies in Roads, Metro Rail, Airports and Nuclear plants Awarded first non-power project in road sector by GF Toll Road Pvt Ltd. Recent foray in Road Sector 21

22 Infrastructure Business

23 Roads Current Projects Project Project Cost (Rs Bn) Funding (Debt : Grant : Equity) Length (Km) Concession Period* Status 2 Road projects in Tamil Nadu (i.e NK & DS) :7: years Operational 3 Road Projects in TamilNadu (i.e TK,TD &SU) :20: years COD by Q3 FY11 Gurgaon Faridabad Toll Road :0: years* COD by Q1 FY12 Jaipur Reengus Corridor years* LOA received in October 09 LOA received in Jan 10 Pune Satara Road years* Toll Collection to start from Q1 FY11 Gandhidham Mundra Port Road years* LOA received in Jan 10 Total * Including construction period Current road portfolio of Rs 73.5 Bn 23

24 Western Freeway Sea Link Project Emerged preferred bidder through international competitive bidding PPP framework with concession period of 40 years Extension of 6 km long Bandra-worli sea link by another 5.5 kms over sea between Worli and Haji Ali Estimated project cost of Rs 51 Bn [US$ 1.1 Bn] Bandra Worli Haji Ali Haji Ali R Infra to have tolling right of entire 11.5 kms stretch for 40 years 24

25 Opportunity Landscape Source: NHAI Phase Phase I Phase II Phase III Phase IV Phase V Phase VI Phase VII Phase IV Non NHAI SADRP ICTT Cochin Total To be awarded (Kms) ,459 5,000 5,466 1, , ,554 Projects worth Rs 800 Bn would be in high traffic density corridors Ultra Mega Road Projects Emerging Opportunity 25

26 Opportunities being pursued Stage Number of Projects Length (Km) Project Cost (Rs Bn) RFP Stage RFQ submitted 57 6, RFQ to be submitted 14 1, Total 76 9, Expected to have road portfolio of Rs 200 Bn by FY12 26

27 Metro Rail Current Projects Project Project Cost Debt : Grant : Equity Length (Km) COD Concession Period* Shareholding Mumbai a) R Infra: 69% Metro Line I Rs 23.5 Bn 51:27:22 12 Q2 FY11 35 Years b) MMRDA: 26% c) Veolia (France): 5% Delhi Airport Express Link Project Rs 28.9 Bn 2.33:0:1 23 Q2 FY11 30 Years a) R Infra: 95% b) CAF (Spain): 5% Mumbai Metro Line II Rs Bn - 32 Within 5 years from financial closure 35 Years^ a) R Infra: 48% b) R Comm: 26% c) SNC Lavalin (Canada): 26% * Including construction period ^ Could be extended for further 10 yrs R Infra is the only private player in Metro Rail 27

28 Mumbai Metro Line I Project Elevated metro rail connecting Versova Andheri Ghatkopar 12 stations along the corridor Capacity to move 0.6 Mn commuters per day; would reach upto 1.1 Mn in future Nature of work Project Management Consultants Viaduct Station Work Major contractors Business Partners Consortium of Parsons-Brinckerhoff (USA) & Systra (France) Simplex Infrastructure Sew Construction Categories Traffic < 3 km 8 km <Traffic>3 km Traffic > 8 km Fares at Base Year (2004)* Rs 6 Rs 8 Rs 10 * Fares to be every 4 th year Fare Structure Real Estate of 1,000 sqmtrs at each station Special Bridges Rolling stock Supplier Traffic Study Signaling Communication Traction & Power Supply Track work Sew Infrastructure CSR Nanjing Puzhen, China Consulting Engineering Services (CES) Siemens Thales ABB VNC Rail One First metro rail project to private player 28

29 Mumbai Metro Line I Status Update All car bodies of first train manufactured Foundation work for Stations, Viaduct & Depot is almost completed Foundation works for the Western Express Highway Special Bridge and the Mithi River Special Bridge is completed Construction work at bridge over western railway track at Andheri is in full swing Obtained viability gap funding of ~ Rs 2 Bn from MMRDA Expected completion in Q3FY11 18 months ahead of contractual date 29

30 Delhi Airport Metro Express Link Project Metro express link connecting New Delhi Railway Station to Dwarka through IGI Airport Nature of work Major contractors Business Partners Traffic forecast: ~15,000 daily in initial year Project Management Consultants Mass Transit Railway Corporation (MTR), Hong Kong Fare Structure* Civil Contractor Delhi Metro Rail Corporation (DMRC) Categories Fares Rolling stock Supplier CAF, Spain Between New Delhi Station & IGI Airport Rs 150 Traffic Consultant MVA Asia, Systra MVA Consulting Between Dwarka Sector 21 & IGI Airport * Fares to be increased every 2 WPI Rs 30 Signaling & Traction Siemens Real Estate area of 1,32,000 sqmtrs Track work Real Estate Potential Study VNC Rail One Cushman & Wakefield Fastest, comfortable and economical commute to the airport 30

31 Delhi Airport Metro Express Link Status Update More than 80% of civil work has been completed Track work on tunnels and viaducts are under progress Factory acceptance test for major equipments of Power Supply, Tunnel ventilation, Signaling and Platform Screen Doors is completed. Equipment delivery started at sites New Delhi New Station Delhi Shivaji Shivaji Stadium Dhaula Kuan Over 100 professionals from MTR (Hongkong) working along with in-house dedicated team Loan disbursements started Dwarka Sector 21 Dwarka Sector 21 IG Airport IGI Airport NH-8 NH 8 Expected completion in Q2FY11- Before Commonwealth Games 31

32 Mumbai Metro Line II Project 32 km elevated track along the Mankhurd- Bandra-Charkop corridor having 27 stations Concession period of 35 yrs (from financial closure) To be completed within 5 years from financial closure Estimated Project Cost of Rs 110 Bn Viability Gap Funding of Rs 23 Bn Traffic forecast: 1.2 mn daily in initial year Charkop Real Estate development at 1.2 Mn sqft Concession Agreement signed in January 10 Bandra Mankhurd Experience from 2 initial projects would facilitate project execution 32

33 Metro Rail Projects in Pipeline Hyderabad Metro Project cost of Rs 121 Bn 72 km elevated track with 66 stations and 3 Depots Real Estate development of 18.5 Mn sqft Concession period of 35 years extendable by 25 years Bangalore High Speed Rail Link Project cost of Rs 58 Bn Will Connect the City Centre to the International Airport 33 km elevated track (section within the Airport to be underground) with 4 stations Concession period of 30 years Real Estate development at stations and Depot Immense Opportunity to emerge. Benefits of single and experienced player would play key role 33

34 Specialty Real Estate CBD & Trade Tower SEZ Developing a 100 storeyed Trade Tower & Business District in Hyderabad on 80 acres of land Setting-up IT/ITES SEZ at DAKC, Navi Mumbai Unlimited FSI & no restriction on mix use Over 45 acres area - Initial saleable area of 4 Mn sqft Clear titled land : APIIC in possession of the entire land BOA approved and notification process underway R Infra have 89% stake; 11% by APIIC Complete land is in possession Strategic location 6 kms from new international airport 34

35 Airports Acquired developing & operating rights for 5 regional brown-field airports in Maharashtra 1. Nanded 2. Latur 3. Yavatmal 4. Baramati 5. Osmanabad Lease period of 95 years Lease deed executed for Nanded Airport & formally taken over Scheduled Commercial Flights has started by Kingfisher Airlines from Nanded and Latur Airports Signed a contract for a Training Academy at Nanded 35

36 Cement Business Reliance Cementation Pvt. Ltd. To set-up 20 million tonne capacity over next 5 years with investment outlay of Rs 100 Bn Setting up 5 million tonne integrated cement plant in Satna district, Madhya Pradesh Setting up 5 million tonne integrated cement plant in Yavatmal, Maharashtra Identifying other locations across India In advance stage of achieving financial closure for Madhya Pradesh project R Infra developing cement business at full swing... 36

37 Financial Strengths

38 Looking Back Standalone Financials Balance Sheet P&L A/c (Rs Bn) Standalone FY 08 FY 09 9M FY 10 Standalone FY 08 FY 09 9M FY 10 SOURCES OF FUNDS Share Capital & Warrants Operating Income Reserves and Surplus Loan Funds Operating EBITDA Deferred Tax Liability Total EBITDA TOTAL APPLICATION OF FUNDS Interest Fixed Assets Investments PBT Net Current Assets TOTAL PAT Cash & Cash Equivalent of over Rs 78 Bn as on December 31, 09 Debt free at net level 38

39 Shareholding Pattern Category No. of Shares % Holding (In Million) Reliance Anil Dhirubhai Ambani Group Foreign Institutional Investors Domestic Institutions Financial Institution, Banks, Mutual Funds, LIC Indian Public Net worth of Rs 137 Bn Capital infusion of ~Rs 40 Bn by issue of ~43 Mn warrants to promoters Total Increase in Net Worth to Rs 165 Bn As on December 31, 09 39

40 To sum up

41 Partnership with Global leading players 41

42 Moving Ahead. Infrastructure - Expanding footprint in all high growth sectors : Fourteen Projects with aggregate outlay of Rs Bn & growing Generation - Existing development pipeline of 33,780 MW in Reliance Power No further capital infusion required Transmission - Implementing 3 projects with total outlay of Rs 43 Bn Distribution - Existing distribution business to grow at 6% to 8% pa Largest infrastructure company in the country 42

43 Moving Ahead. EPC Business - Healthy EPC order book of over Rs 190 Bn Power Trading - Among top 3 private players and business to grow steadily Cement - Synergies with existing portfolio of businesses Very healthy balance sheet to capitalize on growth opportunities Growth at explosive pace 43

44 Thank You