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Adani Enterprises Limited

Investor Presentation

Thinking big
Doing better July 2018
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of this presentation.

2
Contents

Adani Group

Company Profile

AEL: Coal Mining & ICM

Adani Gas Ltd

Adani Wilmar Ltd

Mundra Solar PV Ltd

Others

Carmichael Mine, Australia

3
Nation Building - Responding strategically to some of India’s profound challenges

One of the global growth Rising middle class Estimated to be the


engines of the 21st century, places increasing world’s 5th largest Availability of cost
ranking high on many macro- demand on consumer market by effective engineering
economic indicators infrastructure 2025 resources

Rising Energy Needs Growing Infra Requirements Increasing Power Demand Food Safety

• Indian economy to remain • 90% of the volume and 72% • ~70% of electricity is • India has among the highest
heavily reliant on Coal of total value of country’s generated from thermal food losses in the world
international trade is power which will continue
• The key driver of coal through maritime transport over the next two decades • Stagnant oil seed
demand is the power sector production and rising edible
• Shipping Ministry estimates • In 2015, as per IEA, World oil demand is increasing
Indian Ports will need to Energy Outlook, over 240 import dependency
have capacity to handle 2.5 million Indian citizen had no
bn MT cargo by 2025 access to electricity

• Resources: Obtaining coal • Logistics: A large network • Energy: Conventional and • Agri: Agri products &
from mines and trading; in of ports, Special Economic Renewable Power infrastructure
future it will also include oil Zone and multi-modal generation, transmission,
and gas. logistics – rail and ships Solar PV manufacturing and
• Adani’s coal operations will gas distribution
account for ~20% of India’s • Adani Ports will handle ~20% • Adani’s power generation will • Adani will cater to 25% of
projected coal requirements of the total cargo at Indian represent ~5% of India’s India’s edible oil demand by
by 2021 Ports by 2021 projected capacity by 2021 2021

4
The Making of India’s Leading Infrastructure Group

1988 1995 2002 2009 2018

Coal Trading
Started a Commenced Among the largest
(1999) Coal traders in the
Commodity world
Trading ICM
Gautam Adani
Business Awarded India’s
Chairman 1st MDO
(2006)
Acquired Carmichael
Adani Acquired Bunyu coal mine Australia
Coal Mine (2010)
Enterprises listed
Indonesia (2008)
(1994) Mining operations
in India, Indonesia Coal Mining
& Australia
Mundra Port
(MDO)
Commenced

1995 (1995)

50: 50 JV with
Wilmar International Commissioned
(2000) Solar PV plant at Mundra
(2017)

Grain Silo Depot


2002 commissioned at 7
Solar Mfg
locations (2007)

Adani Power
1st CNG Station
Adani listed (2009)
Ahmedabad Awarded Grain Storage
Ports
(2004) business from MP state
listed
(2007)

“Fortune”
Largest Food
2009 Commissioned first 1st transmission FMCG brand in
line India
unit (2009)
commissioned
(2009) Worlds Largest JV with
Single location Indian Oil Agro
Acquired Solar Power Plant Corporation
Presence
Dhamra Port Listed (2015) (648 MW) (2016) (2014)
Acquired 1,200 MW in 13 cities
(2014)
Udupi Thermal Power
plant (2015)
Acquired GMR and
Reliance Transmission Project pipeline To be
Lines (2016) > 2GW listed
(2018)
2018 Operates 10
Bangladesh PPA
ports/terminals
Signed (2017) To be
BSES acquisition (2017)
listed
(2018)
Adani Gas

Adani Ports Adani Power Adani Transmission Adani Green Energy

Adani Green Energy = will be demerged from AEL w.e.f from 1st April 2018 FMCG = Fast-moving consumer goods
All business in green colour in Adani Enterprises Limited 5
Adani Group – At a Glance
Largest private sector ports, thermal power, transmission, renewables and coal trading player in India

180 MMT ~15% of India’s EXIM trade 10,440 MW ~5% of India’s Thermal Generation Capacity
2,500 MW ~4% of India’s Renewable Generation Capacity 11,890 Ckt Km ~3% of India’s Transmission Network

Promoter Promoter Promoter Promoter Promoter Promoter


Group Group Group Group Group Group
74.9% 63.6% 73.1% 74.9% 86.9% 74.9%
Adani Enterprises Adani Ports and SEZ Adani Power Adani Transmission Adani Green Energy Adani Gas

–Integrated coal –India’s largest –India's largest private –India’s largest –Renewables –Leading Private
management commercial ports thermal power private transmission Capacity: 1.9 GW Sector CGD
operations operator and generation Co with Co operational, 1.2 GW Company in India
–Over 50% market integrated logistics installed capacity of –Installed Capacity under pipeline –Focussed Pure Play
share in coal (66 Company 10,440MW 5,000ckt KMs; –Solar: 90%, Wind: Gas Marketing and
MTPA) –Market share of ~15% –A national record: doubling by 2019 10%(3) Distribution
–Leading Coal MDO in India’s cargo Mundra thermal plant –SPA signed in Dec –Geographically company
player in India –10 Ports across West running continuously 2017 to acquire BSES diversified portfolio –Operational in 4
and East Coast for 600 days Electricity cities
–Agro commodities and –Tamil Nadu 648 MW
storage, ‘Fortune’ - –Multi-modal logistics –Signed PPA with Govt distribution (c. 3 mn : World’s largest –IOAGPL – 50:50 JV
India's leading cooking of B’desh in 2017 for consumers) single location solar with Indian Oil
–Mundra SEZ (8481 1.6 GW ultra super-
oil brand ha) –Rated Investment plant Corporation with
critical thermal power Grade by Moody’s, operations in 9 cities
–India’s largest solar –Rated Investment project (COD 2022) –Quality
panel and cell S&P, Fitch Counterparties:
Grade by Moody’s,
manufacturer (1.2 GW S&P, Fitch SECI – 28%,
p.a.)
NTPC - 17%

Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA
₹ 37,984 Cr ₹ 3,002 Cr ₹ 12,334 Cr ₹ 8,073 Cr ₹ 21,093 Cr ₹ 6,174 Cr ₹ 3,239 Cr ₹ 2,937 Cr ₹ 1,078 Cr ₹ 857 Cr ₹ 1309 Cr ₹374 Cr
Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets
₹ 17,915 Cr ₹ 43,615 Cr ₹ 21,433 Cr ₹ 47,375 Cr ₹ 52,835 Cr ₹ 69,523 Cr ₹ 10,009 Cr ₹ 17,265 Cr ₹ 9,280 Cr ₹ 13,280 Cr ₹348 Cr ₹1,311 Cr
Market Cap: ₹ 14,776 Cr Market Cap: ₹ 76,731 Cr Market Cap: ₹ 7,039 Cr Market Cap: ₹ 16,634 Cr Market Cap: 4,337 Cr Listing Oct 2018

Operational
Massive Unmatched
excellence Track record of Experienced management
scale execution
Focus on integrating Expertise in regulatory
Largest in Greenfield assets
productivity, acquisitions environment in India
class in record time
lowest cost

Note 1: All the financials are from respective companies’ Annual Financial Statements dated 31 March 2018
2: Market cap is as of 18th June 2018 3: Mix as of March 31, 2018 6
Adani Group : Financial Snapshot* and Stock Price Movement

Revenue Total Net Worth


EBITDA Total Assets
15% CAGR

16,953 39,904 73,640 75,729 5,546 18,218 21,043 1,75,597 1,91,058 1,151 19,490 38,310 45,106
474 1,06,997
5,534
4% 4% 4% 4%
11% 11% 7% 6% 8% 3%
27% 14% 8% 13%
8% 8%
32% 28% 31% 2%
35% 51% 48%
41%
69% 29% 34% 65%
13% 16% 46% 47%
38% 25%
96%
81% 24% 25% 23%
37% 39%
52% 50% 49% 44% 39%
31% 34% 28% 35% 35%
28% 27%
17% 14%

FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018

AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL

Stock Price Movement (%)

Adani Enterprises Adani Ports and SEZ Adani Power Adani Transmission

34%

133%
394%

16%

16%

16%

Oct-2016 Mar-2018 Oct-2016 Mar-2018 Oct-2016 Mar-2018 Oct-2016 Mar-2018

Adani Enterprises NIFTY 50 Adani Ports & SEZ NIFTY 50 Adani Power NIFTY 50 S&P BSE POWER Adani Transmission NIFTY 50



Includes listed Group Companies
Stock Price Movements are until 31-03-2018
7
Adani Enterprises: a Diversified Incubator

8
Thinking Big, Doing Better

Unique Incubator with a distinctive capability in nurturing businesses of national


importance creating value for all stakeholders

Massive Scale - Largest & best in class

Unmatched Execution - Greenfield assets in record time

Experienced Management Team - Expertise in regulatory environment in India

Operational Excellence - Focus on productivity, lowest cost

Delivered stupendous CAGR of 32% for 24 years (since listing)

9
Adani Enterprises : Evolution

2018
• Demerger of Adani Green Energy & Adani Gas

2010
• QIP of $ 850 mn
• Acquired Carmichael Coal Mine
• Won First Coal MDO contract

2007
• APSEZ IPO subscribed 116x
• FCCB Issue of $ 250 mn

2017
• Solar Mfg plant
2001 commissioned
• Adani Gas Started

2015
1996 • Demerger of APSEZ, APL & ATL
• Bonus Issue of 1 : 1
2009
• APL IPO subscribed 21x
• Bonus Issue of 1 : 1

2006
Nov-1994 listed on • Stock Split : Ratio 10 : 1
BSE & NSE @ Rs
150/share
Subscribed 25x 1999
• Signed JV with Wilmar, Singapore
• Bonus Issue of 1 : 1

10
AEL: Corporate Structure

Promoters

75%

Adani Enterprises Limited


(AEL)

Coal MDO ICM **


(Division) (Division)

100% 100% 51% 50% 100%

AGL AWL
Adani Global MSPVL
(City Gas (Edible Oil & Others
Mauritius (Solar Mfg)
Distribution) Food)*

100% AALL/AAFL
100% 100%
(Agro Storage)
AGPTE AGFZE
Singapore Dubai 100% Defence

100%
Road, Metro &
100% 100% 100% 100%
Railways
AMPTY PTAG ASPL ABPL
Carmichael Bunyu Coal
Shipping Bunkering 100% Cement
Coal Mine Mine
(Singapore) (India)
(Australia) (Indonesia)
100%
Water
Consolidated Financials FY18 (₹ in Crs)

Parameter Total Coal MDO ICM AGL MSPVL AALL+AAFL Others AWL*

Revenue 37,984 863 29,454 1,309 554 314 5,406 26,435

Op. EBIDTA 3,002 466 1,261 374 328 100 473 1,010

* AWL financials shown are on 100% basis


** ICM – Integrated Coal Management 11
Adani Enterprises : Exemplary Value Creation
EBIDTA Mix
AEL delivered CAGR of 32% since listing
1000000 FY2012 Others,
Vs 8%

Nifty CAGR of 9.3% & Sensex CAGR of 9.3% ICM, APSEZ,


28% 38%

100000 APL, 26%

FY2015
10000 Others,
ICM, 12% 6%

APSEZ,
31%
APL, 51%
1000

FY2018
100
ICM
9%
Coal MDO 13%

Solar Mfg 25%


Solar Gen
37%
10 CGD 11%
1995

1997
1998
1994

1996

1999

2002
2001

2007
2003

2005

2008

2014
2000

2004

2006

2009

2016
2010
2011
2012
2013

2015

2017
Others
5%

AEL Nifty Sensex


Note: Chart value in log scale rebased to 100

12
Adani Enterprises : Experienced Management Team

Mr Gautam Adani, Chairman & Founder - Adani Group Mr Rajesh Adani, MD – Adani Enterprises Ltd
Mr Adani has more than 33 years of business He has been associated with Adani Group since its
experience. His journey has been marked by his inception. He is in charge of the operations of the
ambitious and entrepreneurial vision, coupled with Group and has been responsible for developing its
great vigour and hard work. This has not only enabled business relationships. His proactive, personalized
the Group to achieve numerous milestones but also approach to the business and competitive spirit has
resulted in creation of a robust business model which is helped towards the growth of the Group and its various
contributing towards building India. businesses.

Mr Pranav Adani, Director


Mr Vinay Prakash, CEO - Mining & ICM
He has been active in the group since 1999. He has
A mechanical engineer with MBA (finance), Mr. Vinay
spearheaded the Joint Venture with the Wilmar Group
Prakash has a rich and diversified experience of over 24
of Singapore and transformed it from a single refinery
years, spanning across the complete coal value chain,
edible oil business into a pan India Food Company. He
from Mining, Trading, Shipping & Logistics to Port &
also leads the Oil & Gas, City Gas Distribution & Agri
Power. He has been instrumental in nurturing our
Infrastructure businesses of the Group. His astute
trading & mining business & achieving multi-fold growth
understanding of the economic environment has helped
subsequently.
the group in scaling up the businesses multi fold.

Mr Rajeev Sharma, CEO – Adani Gas Ltd Mr T K Kannan, CEO – Adani Wilmar Ltd
Mr Sharma has over 38 years of focused experience in Mr Kannan has been active in the group since 1999. He
Oil & Gas industry especially natural gas pipelines and has about 40 years of experience in the Edible Oil
city gas distribution networks. He has been with Adani Sector. Out of which the last 20 years he has been with
since 2003 & responsible for Group’s initiatives in city Adani Wilmar Ltd working in Singapore & India. With his
gas distribution. He was associated with GAIL for 19 rich experience he has been handling the Edible Oil
years in various capacities. Mr Sharma was the business and Co-ordinating, Trading, Marketing &
founding MD of Indraprastha Gas Ltd and has Manufacturing since inception. Prior to joining Adani
implemented the prestigious CNG Program in Delhi. Wilmar, he worked 20 years for Godrej Soaps Ltd.

Mr Ramesh Nair, CEO – MSPVL (Solar Manufacturing) Mr Rajiv Nayar, CFO


Mr Nair has over 27 years of experience in the Mr Nayar joined the Adani Group in April 2016 after a
manufacturing industry. He has worked in Essar Steel 30 years career at Citigroup. At Citi, he had a broad
Limited, Sterlite Industries Limited as COO Sterlite based experience in both developed and emerging
Copper and Director - MALCO and Jindal Stainless markets in India, London and Hong Kong across various
Limited as President & Executive Director. Before disciplines including Corporate Banking, Project
joining Adani Solar, he was the CEO and whole time Finance, Leveraged and Acquisition Finance, Capital
Director of Bharat Aluminium Company Limited (BALCO) Markets as well as Risk and Portfolio Management.
for the last 4 years.

13
Adani Enterprises : Consolidated Historical Financials

AEL FY 16 FY 17 FY 18 Value creation


35,131 38,056 37,984 • Demerger of AGEL, renewables vertical
Revenue
• Listed in June 2018
EBITDA 2,789 3,090 3,002
• Demerger of AGL, city gas distribution vertical
PAT 1,009 988 870 • Listing in 2H FY 19

Basic and Diluted EPS (in ₹) 9.19 8.98 6.89

Net Fixed Assets (NFA) 18,135 21,399 16,081


Expansion of existing businesses
Total Assets 41,756 47,689 43,615
• Enhancing nationwide footprint in Agro and
Total Long Term (LT) Debt 8,163 10,166 5,072
Coal MDO through organic route
Total Debt 19,169 20,846 16,990
• Acquisition of Ruchi Soya, one of the largest
Total Net Worth (TNW) 13,463 14,698 15,588 edible oil producers in India, by Adani Wilmar,

EBITDA / Interest 2.1x 2.5x 2.3x

Total LT Debt / EBIDTA 2.9x 3.3x 1.7x Highly successful incubator


Total LT Debt / TNW 0.6x 0.7x 0.3x • Unparalleled track record of transforming

Total Debt / EBITDA 6.9x 6.7x 5.7x businesses from challenging gestation to

1.4x 1.4x 1.1x robust independence


Total Debt / TNW
• Venture into new businesses such as

Note 1: Excludes Adani Wilmar (50% JV) now consolidated as per equity method per IndAS. defence, roads, cement and water

Note 2: FY18 figures exclude AGEL

Note: 1. Per Indian Accounting Standard (IndAS) 2. Note: EBITDA = PBT + Depreciation + Net Finance Costs 3. Debt figures exclude Intra-Group Borrowings
14
AEL: India Coal – Coal MDO & ICM

1
5
Global Coal: Demand to remain stable, with India contributing significantly towards
imports & Australia towards exports

India net imports, Australia net exports to be the highest


-38

-67
+40

~+95 +69

+21

-67

-3
+130

India thermal coal imports by country


Seaborne Thermal
Coal Market 2017 2035
1062
/ Net exports/ imports in 2035 over 2017 levels
29%
945 44% 42%
51%

5% 29%
2017 2035
Coal Volumes (Mt) Indonesia Australia Others

Source: Wood Mackenzie


16
Global Coal Scenario – Stable Outlook
Global coal demand flat lines, with falls in China and OECD offset by increases in India and other Asia

2,500 Million toe Coal Consumption by Region 5.0% Coal Consumption Growth and Regional Contributors

4.0%
2,000 China India OECD Other Asia Other
3.0%

1,500 2.0%

1.0%
1,000

0.0%
500
-1.0%

- -2.0%
2000 2010 2015 2020 2030 2040 2000-2010 2010-2020 2020-2030 2030-2040

China India OECD Other Emerging Asia RoW


Source: BP Statistical Review Source: BP Statistical Review

Decline in exports from Indonesia to be offset by exports from Australia With thermal coal prices projected to remain stable

1,600 Thermal coal price nominal estimate(US$/t)


120

500 96
1,200 100
87 86
457 80 82
76 78
429 80
Rest of World
800
416 Indonesia
60
397
Australia
316
40
400
550 20
399 450

0 0
2015 2025 2040 2017 2018E 2019E 2020E 2021E 2022E 2023E
Source: International Energy Outlook, 2017 Source: Bloomberg, JP Morgan Estimates

17
Evolution of Indian Coal Mining & Opportunities

Amendment to Coal Mines Nationalization Act •Allowed private sector participation in coal mining for captive usage
(1973), 1991 •Case to case basis allotment of 218 coal blocks

Auction by Competitive Bidding of Coal Mines •Additional regionally-explored (RE) coal blocks allocated to various PSUs - 14 for Power
Rules, 2012 end use & 3 for commercial mining

•Various complaints were received by the Govt.


CAG Report, 2012 & SC Judgement in 2014
•Arbitrary and non transparent allotment led to cancellation of 204 coal blocks out of 218

•Re-Allocation of the coal blocks; 2- pronged strategy


Coal Mines Special Provisions Act, 2015
•Auction for Private & Allocation for PSUs - either for captive or commercial use

•MoC has opened commercial mining for private sector under Act’ 2015
Way Forward
•Methodology for auction published on Feb 27, 2018 and tender process expected soon

Captive mines portfolio including CIL’s mines for potential MDO business shown below
Category No. of Coal Blocks Category No. of Blocks

Allocation/Auction under Coal Mines Act 204 Allocation & Auction 86


Category No. of Coal ~52 Bn Ton
2015
To Allocate/ Auction Blocks
118
Allocation under CMN Act 1973 14 Pakri Barwadih, Tasra 2
Category No. of Coal ~7 Bn Ton
UMPP Linked Block Blocks12
Sub Total (Coal Blocks) 218
PSUs – Power; allocated 10
Allocation under Mining Rules 2012 ~9 Bn Ton
17
PSUs- Power; cancelled 4
Category No. of Coal
CIL Coal Block for MDO 3 Commercial Mining Blocks 3
~2 Bn Ton
Grand Total 238 Kaniha , Siarmal, Pelma 2

70 Billion Ton

18
Demand Drivers for Thermal Coal in India
Share of Thermal Power to go down to 51% in next 5 years, although expected to increase in absolute terms

2016-17 2022-23
Coal

8% Large Hydro
2% 2%6%
4%
Small Hydro 13%
10% & Bio Mass
Wind Power
4% 326 GW 472 GW 51%
Solar Power 13%
59%
13% Nuclear 4%

Gas & Diesel 12%

Coal based thermal power capacity @ 240 GW by FY 2023

240000
220000
200000
Additions Capacity
MW

180000
160000
140000
120000
FY 17 FY 23

 Coal based power capacity expected to increase from 204 GW in FY 2018 to 240 GW in FY 2023
 Power generation expected to increase at rate of 6 to 7 % for next 5 years

Source: Ministry of Power, Adani Estimates 19


Domestic Coal Production
CIL Total Coal Production (Mn Ton) SCCL Total Coal Production (Mn Ton)
800 762 90 84
CAGR: 721 CAGR: 79
750
726 80 75 80
700
Base—4.6%, 683 Base—4.5%, 71 76
694 68 73
Pessimistic-3.6%, 646
664 70 Pessimistic---3.5%, 64 70 76
650 612 634 692 67 74
Optimistic---5.6%, 668 Optimistic---5.5%, 64 71
579 606 69
600 645 60 60 61 66
622 64
579
550 554 579 600 52 53
50
53
538 50
500 493
40
450 452 462
436
400 30

CIL- Base CIL- Pessimistic CIL- Optimistic SCCL - Base SCCL - Pessimistic SCCL - Optimistic

210 Captive & Others Coal Production (Mn Ton)  MoC has auctioned/allocated 94 captive coal blocks
191

180 under CMN* Act 1973, CMSP Act 2015, CBR 2012
172
147
150
152  Production started in 13 auctioned/allocated coal blocks
111 132
120
80 100 117  Production forecasted to reach 172 MT by FY23 based on
90
63 59
52 51 53 72 89 possible opening of new mines and ramp up
60 40 44 46
53 64
46
30 46 47
FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19FY-20 FY-21 FY-22 FY-23
Optimistic Base @90% Pessimistic@80%

FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23


Peak MTPA 115 53 68 73 106 143 206 256 308
• CMN Act : Coal Mines Nationalization Act, 1973
Source: Ministry of Coal, Market reports, Adani Analysis • CMSP : Coal Mines Special Provisions Act, 2015 20
• CBR 2012 : Competitive Bidding of Coal Mine Rules, 2012
Demand Supply of Thermal Coal

MMT Supply Total Demand


1200 1117
1050
988
1000 930
852 886
828 843
783
800 733
647 686
597 625
600

400

200

0
FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23

Imports over the next 5 years likely to be range bound between 140 to 160 MMT

(MMT) 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 CAGR (18 to 23)

Total Demand 828 852 886 930 988 1050 1117 5.6%

% Increase 3.05% 2.94% 3.99% 4.97% 6.24% 6.28% 6.38%


Total Supply
597 625 647 686 733 783 843 6.2%
(Pessimistic)
% Increase 3.3% 4.6% 3.5% 6.02% 6.8% 7.09% 7.5%

Total Supply (Base) 597 625 659 706 763 825 897 7.5%

% Increase 3.3% 4.7% 6.4% 7.4% 8.54% 8.25% 8.9%

Imports may go beyond the range based on how CIL & captive performs, removal of infrastructure bottlenecks
including railways !!

21
Adani India Mining: Introduction

Largest Mine Developer & Operator in India

• Exploration
Parsa East and Kanta Basan,
Peak Capacity 15 MMTPA • Preparation of GR, Mine Plan

• Land Acquisition, R&R


Kente Extension
Peak Capacity – 7 MMTPA • Obtaining Clearance

• Establishment of washery & reject based TPP


Parsa,
Peak Capacity – 5 MMTPA (if applicable)

• Planning, Developing & Operations

Jitpur, • Operation of mine


Peak Capacity – 2.5 MMTPA
• Logistics solution
Talabira II & III
Peak Capacity – 20 MMTPA
Gere Pelma-III
Peak Capacity – 5 MMTPA
• Average Potential mine life: 30 years

• Estimated direct employment to 3200 persons

Operational Under Development

Map Source: http://clipground.com/clipart-maps-of-india.html MMTPA: Million Metric Tons/ Annum 22


MDO Business Model & Project Pipeline
Mine Owner Packages wherever applicable basis

Payments to MDO Coal Delivery by MDO

Facilitating in obtaining clearances, DPR / mine plan, Land


Mine Developer acquisition and R&R
and Operator
(MDO) Construction of Infra such as CHP, Washery, rail siding etc.
Bundled
Coal & OB Removal Package
Coal Loading & Transport
MDO to do all Investments as per
Scope of Work of which some O&M of Washery & Disposal of rejects
part are reimbursable
O&M of railway siding

Major risks are transferred to one contractor- Ease in Contract Management

Parsa East & Kente Gare Pelma Talabira II


Parsa Gare Pelma -II Jitpur Total
Kante Basan Extension -III & III

Owner RRVUNL RRVUNL RRVUNL CSPGCL Mahagenco NLC APL 7 Contract

Geological
516 256 200 210 736 589 81 2588
Reserves (MnT)

Mineable
451 184 160 (Est) 134 553 554 66 2102
Reserves (MnT)

Capacity
15 5 7 (Est) 5 23.6 20 4 80
(MTPA)

Status of Producing Start in Start in Start in Start in Start in


Start in 2019
Production since 2013 2021 2018 2021 2019 2020

Adani Role MDO MDO MDO MDO MDO MDO Captive

CMDPA
Contract Status Signed Signed Signed Signed LoA awaited LOA issued
signed

23
Why we entered into MDO? - a natural progression from Coal Trading

Successfully developed Power


projects and Ports in India –
Gained experience in LA,
Community engagement, infra
development- critical for Coal
mining as well
Mining in Indonesia since 2007- Our presence in Coal Trading
Built credence to venture in business with PSUs, SEBs –
Indian mining industry after a Built strong relationship with
taste of success in foreign soil PSUs

Adani entered in
Indian Mining
MDO Business in
2008 - with
RVUNL

24
PEKB Project - World class infrastructure developed within a record time

 Infrastructure consisting Pit top railway siding, silo


 Mining Operation Started in Jan 2013
with Rapid Loading system for evacuation of coal
 Coal Production commenced in Feb 2013 is under final completion

 Mining operations started within record time of 5  Strong EBIDTA Margins & Profitability with stable
cash inflows and robust financial indicator
years from the date of allocation of coal block

 In-house expert team of Geologists and Mining

Engineers
8.27 8.33
 More than 25 MMT coal produced since the start
6.3
of mine

 Peak Mining capacity as per approved plan - 15 3.44

MMTPA

 Developed world class coal washery and CHP


FY 15 FY 16 FY 17 FY 18

ROM Production (MMT)

PEKB mine - a model project - it is vertically integrated through private rail corridor (SRCPL) to provide last mile
delivery of coal at TPS

PEKB – Parsa East & Kante Basin 25


Competitor Landscape

Turnover (Rs.Cr) Financial Position of Competitors FY16-17 Networth (Rs.Cr)


10000 JSPL* 10000
Jaypee Power
9000 Adani 9000
Turnover Networth Essel
8000 8000
7000 Less 7000
6000 Aggressive 6000
Dilip Buildcon Competitors
5000 Most Aggressive Competitors 5000
Adani
4000 Sadhbhav 4000
Jaypee Power
3000 3000
Monte Carlo BGR Lanco Sadhbhav
2000 Sainik 2000
VPR AMR Dilip Buildcon
1000 Ambey Sical Essel 1000
Southwest Thriveni
Lanco
0 Dhansar 0
Mahalaxmi

Single Mine with Highest Mineral Production in one


Mineral (Mn Year From FY11-FY17 Mineral+OB
35 Ton) (Mn Cum) 70 80
Mineral (LHS)
30 60
25 50 MDO for Coal/Lignite/Iron Ore

20 40
15 30
10 20
5 10
0 0
Dhansar

Sainik

AMR

JSPL
VPR

Essel
Mahalaxmi

Sadhbhav

PT Darma
Southwest

Monte Carlo

Sical

Adani
Ambey

BGR

Jaypee Power
Thriveni

Indonesian
Company

* JSPL : Turnover - Rs. 15494 Cr. ; Networth – Rs. 21675 Cr. Source: Adani Analysis, Company Reports
26
Robust operations driving strong financial performance

8.27 8.33
7.31 7.1
6.3
5.5

3.44
2.95

1.2 0.96

FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18

ROM Production (MMT) Washed Coal Dispatch (MMT)

61%
56%
54%
47%
956 579
863
466

570 23% 322

286
135
77
18

FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18

Revenue (in ₹ Cr) EBITDA (in ₹ Cr) Margin

27
Integrated Coal Management: Our Global Footprint…
Multi-Country Multi modal Customer Account
Financing Management
Procurement Logistics

ICM

Private Adani Power Overseas


PSU
Business Ltd business Yamunagar
Suratgarh Panipat
Hissar Harduaganj

Dadri Tanda Vindyachal

Kota Unchahar Kahalgaon


Badarpur
Parichha Sagardighi
Chhabra Rihand
Dhamra Bakreshwar
Kandla Mejia Bandel
Panki Durgapur
Wanabori
Mundra Kolaghat
Gandhinagar Sipat
Bedi Haldia Tarakan
Navlakhi Korba [Talcher]
Samarinda Tanjung Bara
Dahej Tiroda
Koradi Bontang
Paradip
Hazira Chanderpur

Parli
Ramagundam Vishakhaptnam Muara Satui
TanjungIndonesia
Simhadri
Kondapalli Gangavaram Pemancingan
Kakinada
Richard Bay
Goa
South Africa
Queensland
Ennore
North Chennai Australia
Mettur Tuticorin
Ports
Locations served
Tuticorin

We are a team of 200 + People with operations spread across globe through more than 20 satellite offices & branch
offices, 4 global offices and a HO based out of Gurgaon

28
AEL: Integrated Coal Management – Amongst World’s leading & India’s largest

Resilient Business Model with Dominant Market Position Sales Mix

In MMT FY 18

7%
31% 48% 56% 45%

22% SEBs
66 MMT APL
78 81
185 66 Exports
58 164
145 147
63% Private/Others
8%

FY15 FY16 FY17 FY18

AEL Coal Trading Volume India Steam Coal Import

Stable Operating Performance Realizations on an uptrend

in ₹ Crs. In $/ MT
Revenue EBIDTA

27,446 30,232 29,454 66.61

55.71
52.52

967 998 1,261

2.85
1.85 1.84

FY 16 FY 17 FY 18

Revenue / MT EBITDA / MT
FY16 FY17 FY18

29
AEL: Adani Gas –
City Gas Distribution

www.adanigas.com
30
Natural Gas – A Low Cost, Clean & Efficient Source of Energy
Abundance Availability Affordability
Acceptability
Gas Value Increasing Expanding Price decline,
Less polluting,
Proposition Liquefaction Imports / commoditized,
clean and green
capacity infrastructure fungible

Global Gas export capacity increasing 50% between 2016-20 Infrastructure around natural gas import is accelerating

425 398
400 374 80 73
375
350 328 60 53
325 44
299
300 40 28
265 24
275 245 248
241 16
250 20
225
200 0
13 14 15 16 17e 18e 19e 20e China LNG (MMTPA) India LNG (MMTPA) India Pipeline ('000 KM)
mtpa FY 16 FY 20E

Poor air quality in cities supporting gas adoption Gas is cheaper than oil linked fuel
$/MMBTU
Oil Linked Fuels
Gas Price
Iran 3
Nigeria 11.3 10.8
5
Pakistan 5 8.7
7.6 7.1
B'desh 6 6.3

Saudi Arabia 6 No of Cities 3.7


2.7
China 16
India 31

0 10 20 30 40
World’s 100 cities with worst Air Quality

From a fragmented and regional market, natural gas now a global commodity. Supply is driven by new discoveries and demand
by rapid infrastructure development

31
India belatedly catching up on the Natural Gas
Environmental commitments, “Make in India” initiative, need for energy security makes natural gas a priority

Lower Gas Consumption per Capita (Cbm/person) India Contracted and Uncontracted LNG Demand

30,630 21,449
2,367 1,678
253 152
80

UAE Qatar United Thailand Bangladesh China India


States

Gas as % of primary energy consumption declining National Priorities

60 61 • Paris agreement requires 35% reduction in CO2 over 2005 level


51 49 49 50
46
40 42

32
36 37
• Reduce oil import 10% by 2020
28 30
26 26

9 10 10 10 • Balance energy mix- gas 6% to 15%, by 2022


8 7 7 8 8 8 8 8 8 7 7 6 6

2000 2002 2004 2006 2008 2010 2012 2014 2016


• 100% LPG/PNG penetration
Gas as % of Primary energy Prmary Energy Gas Consumption

India has lagged, but given the global glut, this might be a advantage with significant uncontracted demand.
Gas and Renewables together serves the twin purpose of climate and growth

32
City Gas Distribution (CGD) infrastructure generates demand
China Gujarat
Gas consumption increased 4 times compare to India Highest CGD penetration and gas has 25% share in energy mix
LNG as transport fuel picked up due to LNG infrastructure compare to national average of 6%

Gas demand India Vs China (In BNSCMD)

India China
188
200 172
151
Gas Consumption

137
150
111
93
84
100 73
59
48
35 41
50 30
71
60 61
51 49 49
36 37 40 42
28 30 32
-
FY 02 FY 04 FY 06 FY 08 FY 10 FY 12 FY 14

China LNG as auto fuel demand rising as fueling station increasing

200 2800 3000


2667
180
Heavy Duty trucks('000)

2230 2500
160
140 1824
2000 LNG Station (Nos)
120
100 1500
175
80
777 137 1000
60 124
40 304 74 500
203
20 101
14 17 22 38
0 0
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Heavy duty Trucks ('000) LNG station (in Nos)

Consensus at political & judicial level to replicate Gujarat model , i.e. to increase gas share to 25%

33
Massive Infrastructure Investment in Oil & Gas sector is underway
Carrier first- Commodity latter. Infrastructure will unblock latent demand.

Ongoing Infrastructure Investment


India Gas Pipeline and CGD Network

• LNG terminals from 4 to 11; 6 under construction, 2


terminal from group company

• Pipeline network of 16000 kms extended by


13000kms work is started on most of stretches

• City Gas Distribution from 78 to 250 cities by 2020,


bids for 150 cities are likely by March 2018.

• Incentives to explore and extract gas, 1st round


under OLAP/HELP is going on.

• Small oil field 1st round concluded and second


round by May 2018.

Blue star denotes proposed 146 GA for CGD bidding

About $23bn will be spent in the next 5 years to build oil & natural gas infrastructure.
Approx. $1 bn VGF has been granted to GAIL to build pipeline infrastructure with likely unbundling

34
Indian CGD is ready for next growth cycle
CGD to provide base load to Gas Economy. Government is aggressively pushing Compressed Natural Gas and Piped Natural Gas

Growth Drivers
India Gas Demand is Increasing
252
500
219 • 120 districts have high pollution levels
190
400 167
150 • Stringent emission norms. SC suggestion to ban Fuel Oil &
MMSCMD

300 Petcoke on pan India basis


191 206
157 173
200 134
0 131
0 139
0 146
121
0 117
0 • Coverage to increase to 322 cities (total >700 districts)
100
• Favourable regulatory support for CGD
0
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
• Tax arbitrage between liquid fuel and Gas
Normalised Demand Bull Case
• Energy security by balances energy mix

CGD demand adequately covered by domestic production • Industrial automation supports gas as fuel
38%
140 40%
35% • Domestic production of natural gas is rising and expected to
120 35% grow considerably
31%
100 29%
30%
80
26% • Fuel Oil production declining at refineries
21% 25%
60 111
97
17%
19%
100 103 108
20%
• Absolute constrain on LPG production and Import
92 88 87 91
40 infrastructure
14%
20 41 15%
27 31 36
15 16 17 18 22
0 10% • Highway, Inter city traffic, MHV, 2W will drive demand
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
• Urbanisation and High rise building supports CGD
India CGD Demand Domestic Productiom
CGD as % of Domestic Production

CGD will have wider political patronage due to its wider, small consumption intensity (Household, passenger vehicles, small
enterprises)

35
Natural Gas: Clean Fuel for Swachh Bharat (Clean India)
Fuel for urban India, clean India, digital India, GST compliant India

CNG has significant price advantage over Petrol Khurja- Case Study
INR/ ltr energy equalized
80.00 Demonetization, GST roll out and environmental pressure changing the
70.00 fuel landscape.
60.00
33.44 Small town about 100 Km from Delhi is famous for ceramics art work. 150
50.00
units making hand crafted pottery and ceramic work.
40.00 14.83
9.06
30.00 11.78 Unorganized sector, avoided using natural gas which leaves a trail and can
20.00 reveal financial data.
29.22
10.00 22.64
- Used all kinds of fuels – Furnace Oil, PetCoke, Kerosene, Rubber/Tyre Oil,
Petrol CNG as emission monitoring not a deterrent
Brent/ Gas S&D Cost/ Margins Taxes
The tri–combination of Demonetization, GST and SC’s decision to ban
Furnace Oil, PetCoke has proved to be a game changer for fuel mix.
Natural Gas Vehicle Penetration is low and will increase
India 1% November 2016 our total PNG sale in Industrial segment at Khurja was
2000 SCMD.
Thailand 1%
China 2%
December 2017 sales, increased to 16000 SCMD, registering 8 fold growth
Brazil 2%
Egypt 3%
FY 19 will reach 80000 SCMD, growth of 4000% in 2 year expecting 100%
Banglade… 11% units on Natural Gas.
Iran 15%
Pakistan 33% Industry is happy with ease of use with gas: saving space/ easy to handle/
on tap/ pay after use/ safe and reliable. It has improve the product quality.
0% 10% 20% 30% 40%
NGVs as % of total vehicle population

Apart from less polluting and ease of operation, Natural Gas will continue to have significant competitive advantage over
liquid fuel

36
Regulatory Framework, Policy Landscape

Regulator Framework Pricing Mechanism Recent Policy Impetus

• No regulatory control on Sales Price


• Allocation of domestic gas for household
Petroleum and Natural Gas Regulatory
Board • Sales price are benchmarked to alternate
and transportation segment
fuel in each segment
• Public Utility status to CGD
Asks for bids for Municipal areas based • Natural Gas will have clean and Green
upon premium over alternative fuel • CGD eligible for funding from infra cess

• Network Tariff-20% • Prices are more stable and less volatile • LNG approved as fuel for highway
• No. of Domestic Connection-50% than liquid fuel
• No. of CNG Outlets-20% transportation
• Inch KM of Pipeline-10% Gas Supply Mechanism
• Natural gas is likely Ito be included in GST
• Government allocates gas for CNG &
• Push for LPG penetration in rural area
domestic use
• Strong entry barriers by regulation-
Awards 25 years concession • Gas for other segments bought from open
market exclusivity
• Awardee to build the urban
network • Sourcing is fair mix of short term and spot • Ban on Fuel Oil in NCR and SC suggestion
o Network exclusivity for 25 yrs
o Marketing exclusivity for 5 yrs contracts
to ban pan India
expected to increase to 8 year
• Term prices are benchmarked to Brent
• Massive infrastructure in oil & Gas
• No regulation around marketing crude
margin
• Main suppliers are GAIL, GSPC, IOCL • Likely unbundling of GAIL

In essence, Utility Business with a market economy flavour - largely unregulated

* Compressed Natural Gas 37


Adani Gas Expanding CGD Network

AGL is directly operating in 4 cities and added 9 cities in recent bidding rounds through IOCL JV, All 9 cities to be operational by 2021

Chandigarh AGL along with JV to expand footprint

Udham Singh Nagar Network by FY21 ADANI GAS IOAGPL

Panipat
Bulandshahr Cities 4 9

Faridabad
Khurja Infrastructure
-Steel Pipeline KM 500 750
Ahmedabad -PE Pipeline KM 6,000 5000

Allahabad Customer No.


-Industrial 1,500 750
-Household 4,00,000 2,50,000
Vadodara -Commercial 3,000 1,000
Daman

CNG Outlets No. 100 75

Dharwad
South Goa Gas Volume
MMSCMD 1.75 1.5

Adani Gas

Ernakulum IOAGPL Aspirations to add more cities to portfolio in upcoming


bidding rounds

Largest private sector CGD. Well positioned to expand the network

38
The JV with IOCL: Public sector pedigree with private sector expertise
Petronet LNG, IGL with 50% private ownership are success stories in Indian gas sector, IOAGPL to replicate and exceed the
same in CGD JV will have private sector character

Domain Expertise Infrastructure


• Processes Logistics & resources
• Manpower Borrowing Capacity

• Strong commitment of promoters

• Promoters has stake in 5 upcoming LNG terminal

• Economics of scale will allow

• Continued cost leadership

• Competitive sourcing of gas, IOC is importing LNG

• With IOC good support at government/ regulatory levels

• Easy access to ready marketing infra of IOCL, 25000 retail outlets

• Strong credit rating of promoters

• Ability to hire talent

• Easy to scale on technology platform developed by AGL

• Strong safety practices adopted at AGL

IOAGPL is in perfect position to participate in growth driven by new geographies and intensify growth within developed
cities

39
Adani Gas – Key growth drivers
Intensifying the growth within same and new geography, increasing PNG penetration in each segment
Replicating the AGL learnings at JV

CNG Household Industrial/Commercial LNG

• Existing User- additional • Building with infrastructure-


mileage • Linked with Economic growth • Long distance fixed route
current penetration < 50%
• Inbound from other GA highway vehicle
• Outbound to other GA • New Industrial clusters
• New Building, under
• New User construction building- 100% • Industries not connected with
• New CNG car buyers • NCR- as much coverage Pipelines
penetration from day-1
• New CNG conversion
• New Segment • Outer Faridabad • CNG for cities closer to LNG
• Pubic building, Defense, PSU
• Commercial MHV colony, Auda terminal not yet authorized
• Cab aggregators
• Existing user of other CGD • Heating application current user
• boarder area base around 30%

Strategy Strategy Strategy Strategy

• Zero waiting at outlet • Customer Ease • On demand connection • Early mover


• Spot Billing
• Targeted marketing and • Prepaid meters • EMI for upfront cost • Pilot type projects
awareness
• Targeted marketing and • Targeted marketing and
• Strategic positioning of new awareness awareness
outlets
• Safety awareness • Safety awareness

CGD is in resurgence mode and ready for next round of growth, likely to have higher growth compared to peers

40
Adani Gas customer base is well spread out across segment and cities
Pure play CGD company with 10 year of operational track record

Segment Wise Volume City wise Volume


Comm VAD KHJ
The Differentiators
3% 6% 2%

Dom
7% • Balanced product segment mix

FBD
28% • Wide customer base
Ind CNG
37% 53% AHD
64%
• No single entity greater than 2% of revenue

• Cost leadership – Lowest operating cost in the industry

• Under penetrated market in Gujarat and NCR


Gujarat segment Volume NCR segment wise Volume
Comm
• Management Depth
Comm Dom 1%
Dom 4% 3%
9% • Strong Brand

• Technology driven only CGD company to have SCADA


CNG Ind CNG
53% 44% 52%
Ind
34% based operation

• Evolving SCM integration with new terminals

Well established player, competitive advantage from low operating cost, scale advantage for new cities

41
Adani Gas: De-Merger

Adani Gas Limited (AGL) operates the CGD business and is currently 100% subsidiary of AEL

• AGL is operating in 4 cities and its 50: 50 joint venture with Indian Oil Corporation
Largest Private Sector CGD
Limited, has been authorised for 9 cities.
player in India with significant
• CGD is end customer facing business, listing of AGL will provide AGL with brand
growth opportunities
awareness for future growth

• AGL will be a pure play gas marketing and distribution company.


Focused Pure Play Gas
• All the CGD assets will be housed under AGL
Marketing and Distribution
• Focused management team to capture emerging opportunity in Gas as Green Fuel

• Unlocks value of CGD business currently embedded in the value of AEL


Shareholder Value Unlocking • Shareholders to get direct exposure to high growth CGD business of AGL, removing any
holding company discount

Post demerger, AGL is to list on stock exchanges tentatively by end of H1FY19

42
Resilient operations resulting into robust financial performance
Strong Operational Matrix

Volume in MMSCMD Gross Margin INR per SCM Gross Margin in % & INR/Crs)
800 50%
25
CAGR 10.1 700 45%
1.50 9.6 9.7
1.3 37% 38%
40%
20 8.5 600
1.1 1.1 33%
1.20 1.1 1.0 35%
500 25%
15 30%
0.63 6.0
0.90 11.09 12.34
0.57 0.51 11.80 400 178 25%
0.52 0.47
11.81 16% 133 20%
10 300 132
0.60 94
7.53 15%
200 93
0.30 0.61 0.68 5 306 10%
0.55 0.56 0.57 7.69 7.73 240 232 261
7.11 100
4.47 4.96 152 5%
- 0 - 0%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
CNG PNG PNG CNG CNG

Robust Financial Performance

Operating EBIDTA INR per SCM / Free Cash Flow INR/Crs. ROCE (%)
EBIDTA Margin in %
9 35%
7.6
8 49 21%
6.9 6.9
7 30% 19% 18%
5.8 16%
6 30% 29% 12 33 140
40
25%
5 4.1 26% 125
30 11%
4 0 78
20%
3 18%
50
2 15% 128 96 152
1
11%
79 178
0 10%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
EBIDTA (Per SCM) FCF (Post Capex) ROCE

43
Key Investment Highlights

Natural gas has become a major source of clean fuel based energy across the world with heavy investment in
production, transportation and distribution infrastructure

Lower cost and cleaner than other fossil fuels

India has lagged; however now serious efforts to catch up: $23bn earmarked

Exponential multiyear growth expected

Adani Gas is the largest private sector player – well positioned to take advantage of this growth

Cost leader, strong balance sheet and superior execution capability should help in building pan India CGD
infrastructure

44
AEL: Adani Wilmar – Edible Oil & Food

www.farmpik.com
Edible Oil Industry in India

• India consumes almost 21 MMT edible oil every year


• Consumption of edible oil growing @ CAGR of approx. 4%
• India is the third largest consumer of edible oils (12% of global consumption), after China and the EU
• Every increase in income translates to a rise in demand for food products including cooking oil.
• Consumption-driven demand growth has outstripped domestic supply growth, increasing the country's import dependence to nearly 60%.

46
Indian Edible Oil Consumption Growth Drivers
One of the lowest per capita oil consumption (in kg) Market Dynamics

70
61.1 63.9 63.9 63.6
59.7 • Exponential increase in consumption driven by rising
60 62.4 62.8 64.2
59.5 60.1 income levels and aspiration.
50
43.8 43.8
40 39.6 39.7 41.2
• Imports which constituted 3% in late nineties of
30 overall consumption now at 70%.
25.1 25.7 26.2 26.4 26.6
20
15.4 15.8 16.7 17.4
14.9
10 • Per capita consumption to rise to about 23kg by 2025
with a growth likely to be around 4%.
0
2011-12 2012-13 2013-14 2014-15 2015-16

EU USA China Brazil India • Indian oilseed production stagnating and not likely to
grow – fueling growth of Imports
Consumption to grow manifold

35
30 • Lowest Per Capita Consumption (Kg) of Edible Oil in
30 26 India – Huge potential to grow.
25 23
20 20
20 17
15 • 50% of consumption still catered by unorganized
10 sector- Huge potential for consumer pack business.
5
0
• Demand not constraint - Supply is abundant.
2015-16 2020-21 2024-25

Per Capita (In Kg) Demand (MMT)

47
Adani Wilmar: Strong Growth through Brand across Food segments
Edible Oil and Food Business Dominant Market Share

(as at March-18)

19%

14%

5% 4% 4%

Basket of Brands for Edible Oil & Food Products

• Refineries spread across India to cater the geographies Haldia-


(North East), Mundra-(West) Mangalore, Kakinada&
Krishnapatnam- (South).
• Crushing Units located in the proximity to seed cultivating areas-
Mantralayam –Sunflower Seed, Neemuch, Chindwara, Shujalpur
(M.P.) , Bundi (Rajasthan) & Nagpur (Maharashtra)-Soya Seed,
Alwar & Bundi (Rajasthan)-Mustard Seed.
• Job work units spread across India to cater the local markets.

48
Business Model & Strategy
Journey so far….

• Set up first refinery at Mundra with a refining capacity of 600 TPD in the year 1999

• Launch of Fortune Brand in the year 2000

• Grown from 1 refinery in 1999 to 18 refineries in 2018

• Refining capacity increased from 600 TPD in 1999 to 11000 TPD in 2018

• Owns 18 refineries and 10 crushing units at various strategic locations across India.

• One of the leading exporters of Castor Oil, Oleo-Value Added Products and De-oiled Cakes

• Revenue went up from INR 417 Cr to INR 25000 Cr over these years

• Capital investment of INR 2500 Cr as on date

Competitive Advantage Future Plans

• 18 Refineries & 10 Crushing Units • To be considered as FMCG Food Company instead of only
• Refining capacity of over 11,340 tonnes per day
edible oil company
• Seed crushing capacity of 8,950 tonnes per day
• Packaging capacity of 8,360 tonnes per day • Overall Volume Target – 10 MMT by 2021-22
• 5000+ distributors & >1 mn outlets serve 30 mn • Consumer Packed Oil Business – 3LMT/Month as against
households
1.75-1.80 LMT/Month at present
• India’s No.1 edible oil brand “Fortune” having presence all
over India • Plan to Grow in new business segments like Wheat Flour,
• Diversified food products such as Rice, Soya, Pulses, Besan, Rice, Soya Nuggets and Sugar
Castor and Soya & Oleo value added products

49
Financial Parameters

Volume MMT Revenue Rs Cr


4.50 4.27 30000
3.92 26435
4.00 CAGR : 11% CAGR : 16%
25000 23215
3.50 3.15
3.00 2.78 2.73 20000 17828
2.50 14836 14861
15000
2.00
1.50 10000
1.00
5000
0.50
0.00 0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18

EBIDTA Networth
Rs Cr Rs Cr
1200
1800 1655
1010
1000 1600
CAGR : 24% CAGR : 21%
1400 1280
783
800 1200 1048
961
600 525 1000
502 776
426 800
400 600

200
400
200
0 0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18

50
Key Investment Highlights
1
Indian food
consumption trend is
a compelling case
for AWL’s business

7 2

Competitive advantages in
Strong parentage, company sourcing, investment in
managed by professionals
capacities and strong
and industry experts business strategy aligned to
shift in consumption pattern

Investment 3
6
Diversified product highlights
Pan India presence and
portfolio and focus on extensive manufacturing,
branding to capture marketing, sales and
incremental market share distribution platform

5 4
Strong financial profile with Prudent business strategy and
revenue growth ~25% CAGR, risk management policies, given
with comfortable cash flows the low margin business coupled
throughout the tenor of the with commodity cycles and
project competition

51
AEL: Mundra Solar PV - Solar Manufacturing

52
Solar Manufacturing - Demand-Supply Scenario
Global solar PV demand projection (in GW)

China US Japan India EU RoW


119 121
116 116
107 33
99 38
45 42
79 14
48 13
52 3
13 4
34 12 17
51 5 16
10 6
15 7 12 13 14 15
15 12 12
7 11 13
8
12 9 10
5 9 35 40
2 8 7 21 28 31
7
6 9 11
2015 2016 2017E 2018E 2019E 2020E 2021E 2022E

India cumulative solar capacity (MW)

Installed Capacity
Projected Capacity
100000

82500
65000
48000
32000

12288
3745 6760

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

To achieve such an ambitious target, India is projected to install on average 18,000 MW of solar capacity annually

Source: GTM Research – PV Pulse, February 2018, MNRE


IEO – International Energy Outlook 53
Drivers & Regulatory framework for Growth
• Impending safeguard / CVD duties to open up market demand
India • Increased demand for Indian made cells / modules set to raise ASPs and margins
domestically
• Cells / Modules imported from India exempt from Section 201 tariffs
USA
• Projected market of ~350 MW / year opens up with price premiums
Vietnam • Announced project pipeline is above 8.8 GW
• Energy Strategy Package - 40 GW of PV on top of installed 19.2 GW (EoY 2016),
Italy
translating to 3 GW annual market from 2018 to 2030
• Resurgence of European demand in 2018 will bring 43% annual growth from 2017 levels
Europe
of 6.3 GW
• France, Netherlands and Taiwan round out some of the most attractive markets by 5-
Others
year market size (~ 2 GW/annum) and growth rate (2-3x)

Supportive Regulatory framework


Gujarat Govt. Policy Safeguard Duty Countervailing Duty M-SIPS Policy

o INR 100 Cr CAPEX o Status o Status o Status


subsidy • Recommended • Ongoing • INR 342 Cr. Capex
o INR 10 Cr Interest subsidy assessed
subvention o Expected impact o Expected impact
o Full exemption of • 70% duty on imported • 30-35% on panel o Timeline
electricity duty cells from China / prices • Subsidy disbursement
o INR 1/unit rebate on Malaysia expected shortly
electricity rates
o SEZ benefits on import
duties

Duty impacts are expected to have a cumulative impact on imported PV products; an additional customs duty of
7.5% is also being considered

Source: GTM / BNEF 54


Support for Incremental Capex
Proposed Capital Subsidy for new/upgraded capacities

Polysilicon Wafer Cell Module

Est. Capex for


1000 MW ~ $150 Mn ~ $120 Mn ~ $160 Mn ~ $50 Mn

2-3 GW 4 GW 6 GW 6 GW

Upper limit of
CFA* @30%
~ $46 Mn ~ $37 Mn ~ $48 Mn ~ $16 Mn

Manufacturing Support Creation of Local Offtake


• Interest subvention of up to 3% for upgrading/expansion • Restructuring requirements for greater backward
of existing capacity integration
• Exemption from customs duty on import of capital goods • Rooftop DCR to have 40% requirement of domestic
• Lenient allocation and banking of renewable energy for cells in 2018/19
manufacturing • 20% of DCR modules to have domestic made wafers
• Supply of power at APPC + 5% rates from 2019/20
• Land at preferential rates / near ports • 2020/21 to see earmarked DCR component of 20% for
domestic polysilicon

CPSU scheme has been increased to 12 GW from 1 GW;


Creating offtake and price premiums for locally made cells and modules

* CFA – Central Financial Assistance 55


Why India needs to build Solar Manufacturing Capacity

• Controlling Forex outflow: In the absence of manufacturing, India will need to import USD 42 bn. of solar equipment by 2030
corresponding to 100 GW of installed capacity1.
• Job Creation: Solar manufacturing can also create direct employment of more than 50,000 in the next 5 years assuming local
manufacturing captures 50% domestic market share and 10% global market. Another at least 125,000 indirect jobs will be created in
the supply chain
• Investment opportunity in the country impacting the GDP
• Achieving self-sufficiency:
a) Major exporters may decide to divert most of their supply for domestic use (as evidenced by increased demand pull in Q3 2017 and
non-availability of imported modules)
b) Sudden jump in prices in the future due to supply shortages (polysilicon supply constraint raised the price due to supply disruptions)
c) Dispute with major suppliers (as evidenced in the case of China’s rare earth supply to Japan or supply of gas by Russia to European
nations)
d) Unless end-to-end value chain capability is created domestically, temporary protectionist measures like ADD/CVD on cells/modules
may attract additional tariffs on imported raw material like wafers/polysilicon
• Protection against fluctuation in pricing: Unless end-to-end value chain capability is created domestically, temporary protectionist
measures like ADD/CVD on cells/modules may attract additional tariffs on imported raw material like wafers/polysilicon
• Quality and warranty assurance

1) India’s energy imports have risen sharply from USD 43 bn. in 2005-06 to USD 167 bn. in 2013-14. In comparison India’s trade deficit
in 2013-14 was USD 139 bn. Solar power is a strategic need for the country as solar power can potentially save USD 20 billion in fossil
fuel imports annually by 2030.

56
Largest PV manufacturer in India with global scale & quality standards
Production Capacity of Leading Indian Players (in MW) Manufacturing processes and systems equivalent to SMSL,
making us the preferred choice
Cell Module In
Prov
Produc In hous AAA ISO
3*EL en
1400 1400 Compa tion 3xIE hous e IEC6 IEC6 UL17 IEC6 IEC6 Sun 900
Testi CMS Equi
ny Capacit C e Quali 1730 1215 03 1701 2716 Simu 1:
ng pmen
y GW R&D ty later 2015
ts
Lab
Adani 1.2 Y Y Y Y Y Y Y Y Y Y Y Y Y
JA
900 5.3 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Jinko
6.2 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Hanw
500 500 ha Q 5.3 Y Y Y Y Y Y Y Y Y Y Y Y Y
410 430 Cells
Trina
300 5.9 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
GCL 4.9 Y Y Y Y Y Y Y Y Y Y Y Y Y
Longi
0 0 0 0 3.5 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Canadi
Adani SolarTata Power Solar
Vikram Solar Waaree Solar Indo Solar Jupiter Solar an 5 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar

Adani Solar products’ technical specifications are better than / at par with top tier competition’s offerings

Company Power Temp. NOCT Mech. Certifications Performance Workmanship


Range Coeff. Value Load Warranty Warranty
(Wp) (%/°C) (Pa)

Adani IEC, UL, Salt Mist, 25 Years Linear


300-330 -0.42 44±2°C 5400 12 Years
Solar Ammonia, PID (81.2%)

Jinko IEC, UL, Salt Mist, 25 Years Linear


315-335 -0.40 45±2°C 5400 10 Years
Solar Ammonia, PID (80.7%)

Trina IEC, UL, Salt Mist, 25 Years Linear


320-335 -0.41 44±2°C 5400 10 Years
Solar Ammonia, PID (80.0%)

Canadian IEC, UL, Salt Mist, 25 Years Linear


315-330 -0.41 45±2°C 5400 10 Years
Solar Ammonia, PID (80.7%)

57
Adani Solar products have excelled in performance testing against
IEC standards & global peers
Adani ‘s internal pass criteria is even more stringent than IEC standards to ensure delivery of products of only the highest quality and
performance
Pmax degradation (in %)
Type of test Pass Criteria Pass Criteria Actual
(IEC) (Adani) Results
DH1000 – Damp Heat 5 3 1.9
TC200 – Thermal Cycling 5 5 2.9
Mechanical Load Test 5 5 4.1
UV Preconditioning Test 5 3 0.4
HF 10 – Humidity Freeze 5 3 1.9
Hot Spot 5 3 0.9
Potential Induced Degradation 5 3 1.5
Ammonia Corrosion 5 3 0.7
Salt Mist Corrosion 5 5 3.9

Adani (MSPVL) Vs Leading Chinese Supplier Mahoba Site UP Adani (MSPVL ) Vs Leading Domestic Supplier Ghani Site AP

6 25% 300 10.00%

20% 250 8.00%


5
15% 6.00%
4 200
10% 4.00%
3 150
5% 2.00%
2 100
0% 0.00%
1 -5% 50 -2.00%
0 -10% 0 -4.00%

Gain /Loss Average of Jinko Per KW DC Generation Delta Adani 72 Cells Waaree 72 Cells
(Adani-Jinko)/Adani
58
Competitive Advantage
Manufacturing ecosystem with co-located ancillaries Large investment in Capex driving down cost of
developed along the lines of China production

Over 4,100 man-years of technical know-how /


expertise Only cell maker producing 5 bus bar cells in India

MSPVL
MSPVL
Advantage
Futuristic technology mix with higher binning Investment Vertical integration capability / expansion into
than competition global market

Technical consultants enabling high power output Lowest capex intensity (INR 1.6 Cr / MW) w.r.t.
and efficient production peers

• Leading QMS and excellent product quality assurance


• Triple stage Electro-luminescence inspection
• Working on the principle of lean manufacturing
• Co-locating ancillaries to achieve strict quality control
• Tie-ups with leading global institutes (ISC, UNSW, PI Berlin, Fraunhofer etc.) for material and process improvements
• Dedicated R&D center to enable continuous upgrading of lines as per latest developments
• Process based on Just-In-Time procurement enabled by raw material tie-up through tolling / LTA
• Strong inbound and outbound logistics management team

Adani Solar has been rated Tier-1 by BNEF for bankability


providing approval for our commitment towards quality & reliability

59
Future Plans & Key Investment Highlights

Future Plans

• Phase 1 - facility completed for 1.4 GW Cell + Module


• Phase 2 - 1.5 GW Ingot + Wafer; Polysilicon manufacturing plans also in place

Significant asset base with Cell capacity – equivalent to 100% of


Bloomberg Tier-1 status Indian competition

Over 4,100 man-years of technical Only cell maker producing 5 bus bar
know-how / expertise cells in India

WHY
MSPVL
Futuristic technology mix with higher MSPVL
Investment Vertical integration capability /
binning than competition expansion into global market

Corporate backing from strong Lowest capex intensity (INR 1.6 Cr /


parent group MW) w.r.t. peers

60
AEL: Others – Agro Infra, Bunkering, Shipping, Defence,
Commuting Infra, Cement and Water

61
Agro Infrastructure

Fruits Storage Business Grain : Logistics, Storage and Distribution

• 35% fruits & vegetable lost due to lack of storage • 7% grain lost due to lack of storage infrastructure in India
infrastructure in India • Introduced first of its kind modern and scientific storage facilities in India ,
• Brand FARM-PIK, India’s largest selling fruit brand ensuring negligible losses and minimal human touch
• Pioneer to introduce Controlled Atmosphere (CA) technology • Capacity with private railway sidings, transporting grains in bulk from grain-
in India, for increased fruit storage life producing states to consumption areas
• Three Controlled Atmosphere (CA) storages with capacity to • Current total storage capacity of 1 MMT is set to rise to 2 MMT by 2021
store 24,000MTs in the heart land of Apple orchards in HP • Since 2005, built storage capacity of 850,000 tons at 13 locations in India
• A boon to farmers which has changed the apple marketing − Operates storage facilities of 5,50,000 tons at 7 locations under BOO for
landscape in HP FCI for 20 Years
• Sourcing fruits globally for the Indian market − Operates storage facilities of 3,00,000 tons at 6 locations under DBFOT
• Selling through a wide network of retail chain stores across for MPWLC for 30 Years
the major cities in India • Building silos in 10 more locations across India for FCI and PGPCL, with a
capacity of 4,75,000 tons under DBFOT/DBOO for 30 Years

BOO - Build Own Operate; DBFOT - Design, Build, Finance, Operate, Transfer; FCI – Food Corporation of India
MPWLC = Madhya Pradesh Warehousing and Logistics Corporation PGPCL = Punjab Grain Procurement Corporation Ltd 62
Adani Bunkering – a leading bunker supplier in India & Adani Shipping
Bunkering : Re-fueling of ships with different grades of Fuel Oil

Sourcing Shipping Storage Blending Bunker Delivery

Integrated yet independent business model

Adani Bunkering - Factual Snapshot Adani Shipping - Factual Snapshot

• 45% Market Share in India


• Adani Shipping Pte Ltd – a Singapore (AEL’s wholly owned
• Total Volume ~ 7.8 Lac tons subsidiary)
• Owns two ocean going bunker barges with a capacity of • Operator of 5 foreign flag Cape size Bulk Carriers
~3,000 MTs each (biggest bunker barges in India)
• Vessel Capacity range – 175,000 MT to 185,000 MT.
• Dedicated tankages at Mundra (80 KT), Hazira (10 KT) and
• Engaged in transportation of bulk coal / iron ore
Goa (10 KT)
• Counterparty - Both group captive as well as external
• Operating across all major ports of India & South Asia

Rating – BBB+/Stable

63
Defence & Aerospace Business

PLATFORMS AND 2 COLLABORATE WITH 3 GROW INDIAN MSMEs FOCUS ON


1 4
TECHNOLOGIES GLOBAL PARTNERS INDIGENISATION

Focus on platforms and Collaborate with credible and Help develop and grow the Focus on capabilities critical
technologies of critical committed global partners dynamic MSME’s, which are for indigenisation including
importance, to assert India's willing to team up for the long critical for a fast scale-up and design, system integration,
military competence, to meet term and who are willing to sustainable ecosystem in India maintenance & support in
emerging security challenges transfer technology & skills India

UPGRADES &
LIFE CYCLE MANGEMENT - Prime
Fighter aircrafts (Gripen AEROSTRUCTURES & COMPOSITES
E/F) • High quality machined components
supplier to Global OEMs – GE,
MRO* & SUPPORT - Prime
Honeywell, UTC etc.

• Composite parts supplier for


Advanced Materials aircrafts, missiles & unmanned aerial SYSTEM
• Fighter Crafts (Composites) INTEGRATION - Prime
vehicles.
• Unmanned Aerial Systems

• Helicopters SUB-ASSEMBLY &


AVIONICS & SYSTEMS SUB-SYSTEMS - Support
• Satellites Unmanned Aerial Systems • High end built to specification
(Hermes 450 and 900)
• Radars & Electronic Warfare Systems supplier of avionics systems for
fighter aircrafts, helicopters, UAV’s. COMPONENTS - Support
• Machining and Gear Manufacturing
• Focus on design and development
• Carbon Composites Aerostructures with a well-developed supply chain

• Skill Building & Training Centre for fabrication etc.. DESIGN & R&D - Prime

MSME PARTNERS

* MRO – Maintenance, Repair & Others


64
Road, Metro & Railways
Road Metro Railways

Potential & Outlook Potential & Outlook Potential & Outlook

• 53000 kms of NHs have been identified to be • 60% of Indians living in urban areas by 2050 • 100% FDI in the railway infrastructure allowed
built under Bharatmala • Metro rail operating in 10 cities and in 12 more • Prospective investment of USD 131 bn in next
• Under phase I target to reach 24,800 kms by cities it is under implementation five years
FY22 with capital of Rs 5.35 tn • At present, Metro projects of ~Rs 2 tn are • Government aims to boost passenger
• PMGSY intends to award projects of 20000 under approval in 15 cities amenities by PPP model
kms in FY 2017-18 and targets to award • India’s share in the global metro network is • Investment opportunities in components &
projects of 25,000 km in FY 2018-19 currently limited to 3% coaches manufacturing, Infrastructure,
• Metro's role as main transporter has yet to electrification, DFC, terminals operations
gain significance in India gauge conversion & network expansion

Strategy Strategy Strategy

• Focus on the projects across India initiated by • Focus on the projects across the country • Adani is first investor cum developer of private
NHAI & MORTH initiated by various States railway line in India
• Target selected projects under BOT, TOT, HAM • Target selected underground Metro-rail, Mono- • Focus on pan-India PPP projects
model which can offer scale and complexity to rail, Light-rail projects which can offer scale • Target selected EPC projects which can offer
create a differentiated value and complexity to create a differentiated value scale and complexity to create a differentiated
• In-organic growth through M & A value
MORTH – Ministry of Road Transport and Highways; PMGSY - Pradhan Mantri Gram Sadak Yojana; DFC – Dedicated Freight Corridor
BOT – Build-Operate-Transfer; TOT - Toll-Operate-Transfer; HAM - Hybrid Annuity Model 65
Cement Business

Cement Plant Footprints & Capacities – Phase I Cement Business Growth Plan

• Adani Cementation (ACL) plans to be among the top by 2025


• ACL plans to achieve this feat in three phases i.e. Phase I & IA, Phase
II and Phase III
• In its Phase I, ACL plans to put Cement Unit at Mundra, Udupi, Dahej
and Raigarh (near Mumbai)

Lakhpat Integrated Unit • The clinker for the planned units will be produced at Lakhpat, which
Clinker Capacity: 3.2 MTPA will also be an integrated unit
• ACL has also acquired a limestone mine with reserves of 170+ mt

Lakhpat IU Mundra BT
Phase I – Status of Statutory Clearance

Clinker/Cement to be
fed to Gus/BU by Sea
Cement Capacity: 0.55 MTPA
Mundra BT Clearan
Lakhpat Mundra Udupi Dahej Raigarh
ce
Dahej GU Dahej GU
Site visit Date for Filing of
Cement Capacity: 1.1 MTPA Environme Public
Public
TOR
Application
completed by
nt Hearing meeting
EAC, TOR Hearing for TOR

route
Clearance Completed completed
awaited Awaited completed

Site visit by
Raigarh BT Raigarh BT
Range
Cement Capacity: 1.65 MTPA Forest Not Not
Forest Not Required Not Required
Clearance Required Required
Officer
completed

Mining Not Not


Udupi GU Plan
Approved Not Required Not Required
Required Required
Udupi GU Cement Capacity: 2.2 MTPA
NOC from NOC from
Aviation
AAI in Completed Completed AAI in In Process
Clearance
process process

In process In process In process


to sign fly In process to sign fly to sign fly
Linkages Limestone ash to sign fly ash ash
of Raw Mine agreement ash agreement agreement
Material acquired with Adani agreement with with Adani
The total installed cement capacity of 5.5 MTPA by 2020 Power, with UPCL Reliance Power,
Mundra Industries Mundra

GU: Grinding Unit


BT: Bulk Terminal 66
Water Business

Water Stress (withdrawals/available supply) in India India Per Capita Water Availability in Cubic Meters (cm)

• Global water demand expected to grow rapidly to touch >5,200 cubic


kilometres per year by 2025 (growing at over 1.2% every year)
• Agriculture in India is the prime user of freshwater with a share of
80% followed by industry & domestic applications
• Per capita water availability was 5177 cm in 1951, which is down 70%
to 1545 cm in 2011
• According to McKinsey, there will a demand-supply gap of 50% by
2030 in India
• Indian Government has aggressive plans for water & wastewater
projects & investment expected to exceed Rs 1 tn ($15 bn) by 2020
• Adani focussing on projects in PPP/Hybrid-Annuity/EPC mode initiated
by Central & State Government and Local Municipal Corporations
• Some specific opportunities, where projects & tenders are shaping up
• ~13 states in India spanning around 300 districts face water stress  National Mission for Clean Ganga (NMCG)
• Despite a long coastline of ~7600 km, coastal areas have a huge problem  Municipal Corporation of Greater Mumbai
of water scarcity due to poor river water availability, low ground water  Desalination projects in Tamil Nadu
levels & high demand  District wise Water Supply Projects in Andhra Pradesh

Source: World Resources Institute, GoI Census 67


AEL: Carmichael Mine, Australia

68
Carmichael Coal Mine - Overview

 Galilee Basin, Queensland, Australia


Location
 The Carmichael River cuts through the tenement

 One of the largest thermal coal resources in the world

 11.04BT JORC compliant Resource


Resource
 880 Mn T JORC compliant Reserves

 Moderate to high energy thermal coal suited for Asian markets

 Current development: Open cut Mine (Pit D-E) of upto 30


MTPA ROM Coal

Development  Future development : Underground and Open cut Mine


Operations (Pit A, Pit BC, Pit FG and Pit H)

 Mine Associated Infrastructure

 Exploration over Exploration Permit Coal (EPC) 1080 and 1690

 EPC 1080 converted to Mining Lease (ML) 70506 and 70505


EPC & ML
 EPC 1690 converted to ML 70441

69
Carmichael Coal Mine: Capital Cost & Status of Major Approvals
Judgemen
Capex Particulars AUD $m
Initial Further t on
Matter Counterparty
Judgement Appeal Further
Mine Fleet 516 Appeal

Grant of Mine
Pre strip 372 ✔
Environmental Land Services of
In favour of No n/a
Authority on Coast and Country Inc
Adani
CHP and CPP 225 February 2, 2016


Land Services of Coast
NGWS pipeline 158 Land Court Hearing In favour of No n/a
and Country Inc
Adani
MIA & Mine Pit Civils 125 Australian
Grant of Mine EPBC ✔ ✔
Conservation
Approval on October In favour of Yes In favour
Owners costs 106 Foundation
14, 2015 Adani of Adani
Incorporated (ACF)

Capex - Contingency 70 Determination of


✔ ✔
National Native Title
Adrian Burragubba In favour of Yes In favour
Tribunal dated April
Other Capex 60 Adani of Adani
8, 2015

Accommodation - P&I and Capitalised Opex 57 Adrian Burragubba,


Grant of Mining ✔ ✔
Linda Bobongie, Lester
Lease on April 3, In favour of Yes In favour
Total 2016
Barnard, Delia Kemppi
Adani of Adani
1,689 and Lyndell Turbane

Grant of
Comprehensive and Competitive Capital Cost Environmental ✔
Whitsunday Residents
Authority for Port In favour of n/a n/a
Against Dumping Ltd
Development dated Adani
December 7, 2015

Hearing in
Application to Adrian Burragubba,
the Federal
register the ILUA on Linda Bobongie, Lester
Court n/a n/a
April 27, 2016 by Barnard, Delia Kemppi
estimated to
Adani and Lyndell Turbane
be held
70
Favourable strip ratio and mine development sequence ensure low cost
sustainable operations

Favourable strip ratio enables cost competitiveness of the Low operating costs insulate against price and FX movements
operation throughout the mine’s life – Carmichael will be able to operate throughout the cycle

ROM Ratio Breakeven Calculation (10 years average in real US$*)

Annual tonnage (Phase 1) Million tonnes 27.5

Mining Cost $/t 19.7


ROM Stripping Ratio

5.78
5.09 Rail Cost $/t 9.6
4.96

Port Cost $/t 5.87

3.94 Royalty $/t 2.3


3.37
Lease/BOOT/Interest payments $/t 3.5

Total FOB Cost $/t 40.97


1.10

Adjusted Newcastle 5500


2020 2025 2030 2035 2040 2045 2050 Breakeven price
$/t 51
Year

Current price NEWC 5500 $/t 75.6

Consistent strip ratio guarantees consistent volume & quality Margin $/t 24.6

71
Focus Markets – India and South East Asia

Growth markets forecast to be India and SEA – power generation markets that are aligned to Carmichael 5000kCal specifications

• Seaborne thermal coal market expected to grow from

945 Mt in 2017 to 1062 Mt in 2035, the largest markets

being China, India and South East Asia

• The growth in imports is driven by demand growth, a

lack of alternatives, and a persistent demand supply

gap in India.

Carmichael’s product strategy addresses market risk

• Quality - specification is aligned to target markets


First five years of Year 5 of production onwards
• Growing Target markets production
SE Asia /
• Geographically favourable for target markets SE Asia / Other India -
Other 18% Adani
13% India - Adani
• Mining and logistics solutions offer supply confidence to customers Power China
Power
China 36%
25% 36% 20%
India -
• Product strategy designed to evolve in line with target markets India -
Other
Other
26% 26%
• Cost competitive – 1st Quartile cost delivered in to East India

72
Carmichael Mine: A conventional, commercially robust and competitive coal
mine

• Large resource and reserves base (Pit DE >30 years)


• Deposit characteristics well understood
1. Conventional mine
development and operational • Major approvals already in place for current and future developments
approach
• Proven mining method enables product strategy and reduces operational risk
• Conventional construction and execution strategies to efficiently manage cost, schedule and risk

• Comprehensive approach to product strategy development


2. Product strategy well
positioned to take advantage • Carmichael 5,000kcal product aligned to resource quality and operating strategy
of market requirements
• Target markets’ demand increasing and forecast to continue

• Consistent low strip ratio

3. Commercially robust with • Sustainable low operating costs


competitive advantage • Competitive capital costs
• Strategically positioned to rapidly expand

73
Sustainability

• Business in harmony with Nature


• Measurement of carbon footprint across all business
operations
• Management systems & policies in place to ensure
efficient use of resources
• Strategies & initiatives to reduce resources
consumption and maximize recycling

Environment

• Streamlined governance structure • Business growth in tandem with


with system, process & policy community development
Governance Social • CSR activities thrust areas –
• Governance percolates down to the Education, Health, Livelihood
lowest level development and Rural
Infrastructure
• Regular monitoring & review of • Special projects – SuPoshan (Better
performance nutrition), Swachhagraha
(Clienliness), Saksham (Skill
• All operations & activities subjected development) and Udaan ( Career
to regular external reviews & audits building)
• Operations across 12 states, 1470
villages, touching 4 lakh+ families

74
One vision,
One team

Thinking big
Doing better

To be the globally admired leader in integrated infrastructure businesses with a deep commitment
to nation building. We shall be known for the scale of our ambition, speed of execution and quality
of operation.

75