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TRANSCRIPT
Oct 2011
Investor Presentation
Investor Presentation
Disclaimer
• This presentation is for information purpose only and does not constitute an offer, solicitation or advertisementwith respect to the purchase or sale of any security of Punj Lloyd (the “Company”) and no part of it shall formthe basis of or be relied upon in connection with any contract or commitment whatsoever.
• This presentation is not a complete description of the Company. Certain statements in the presentation and, ifapplicable, the subsequent question and answer session and discussions concerning the Company‟s futuregrowth prospects contain words or phrases that are forward looking statements. All forward looking statementsare subject to risks, uncertainties and assumptions that could cause actual results to differ materially from thosecontemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutesa judgment as of the date of this presentation, and there can be no assurance that future results or events willbe consistent with any such opinion, estimate or projection. The information in this presentation is subject tochange without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may notcontain all material information concerning the Company. We do not have any obligation to, and do not intendto, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not cometo fruition.
• All information contained in this presentation has been prepared solely by the Company. No informationcontained herein has been independently verified by anyone else. No representation or warranty (express orimplied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to thetruthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed orimplied) or omissions in this presentation. Neither the Company nor anyone else accepts any liabilitywhatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents orotherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed,shared, or disseminated in any other manner.
2
Investor Presentation
Content
Page No
Group & Company Overview 4 – 7
Management & Organisational Structure 8 – 9
Global Presence & Major Breakthroughs 10 – 12
Major Projects & Service Offerings 13 – 16
Marquee Client Base 17
Financial Position & Market Summary 18 – 21
Industry Overview 22 – 31
Awards & Accolades 32 – 33
Business Strategy & Future Outlook 34
3
Investor Presentation
Punj Lloyd – The Group
• Energy– Oil & Gas – Offshore Platform, Onshore
Field Development, Pipelines, Tankage
and Terminals, Process Plants,
– Power : Thermal, Nuclear
– Renewables : Non–conventional Power,
Bio Fuels, Green Buildings &
Infrastructure and Water
• Infrastructure– Transport :Subways & Metro Systems,
Airports, Highways & Expressways,
Tunnels & Caverns, Seaports &
Terminals, Bridges, Flyovers &
Interchanges
– Utilities : Reservoirs & Treatment Plants
– Building : Hospitality & Leisure,
Commercial, Industrial, Institutional,
Residential Complexes, Healthcare &
Townships & Industrial Parks
• Defence– Land Systems, Aviation and Defence
Electronics
• Onshore Drilling
• Polymers, Petrochemicals & Chemicals
• Equity Investment in Various Business
– Civil Infrastructure & Transportation –
MRT Stations, Roads, Bridges,
Airports,
Expressways, Jetties, Residential &
Commercial Building, Leisure &
Hospitality
– Environment – Water and Wastewater
Treatment plants & Sewage Treatment
Plants, Reservoir, Tunnel & Caverns
– Power Plants
– Coal Mining & Commercial Real Estate
Development
– Oil & Gas
– Petrochemicals, Chemicals & Fertilizers
– Power : Nuclear & Thermal
– Automotive & Aerospace
Sembawang Engineers &
Construction Pte Ltd
PL
Engineering
Punj Lloyd Ltd
4
Punj Lloyd Limited
(A Diversified Global EPC Conglomerate) Sembawang Engineers & Constructors Pte Ltd
(One of the leading EPC Co. in Singapore)
PL Engineering Limited
(An Engineering Services Co.)
Investor Presentation
Punj Lloyd Ltd
Overview
• Providing services in Energy, Infrastructure, Defence and Petrochemicals Sectors
• Presence in 20 countries across South East Asia (Singapore, Hong Kong, Indonesia, Thailand etc)
South Asia, Middle East & Africa etc.
• Rich multicultural manpower from different nationalities
• International clients includes Government, Major Oil & Gas Companies, Power Developers & big
Private sector Companies
• Equipment Assets worth US $ 400 million
• Declared „Infrastructure Company of the Year‟ at Essar Steel Infrastructure Awards 2010 in
association with CNBC TV 18
• Dedicated Defence Manufacturing Facility at Malanpur, near Gwalior in Madhya Pradesh
• Floated “Infrastructure development” arm of the group by the name of “Punj Lloyd Infrastructure
Ltd”, as 100% subsidiary, with focus on Road Projects (PPP/ BOP) & Solar Power
• Strategic Equity Investments in Businesses – Security Services, Insulation, Health Care & Airline
MRO (Maintenance, Repair & Operations)
• Maintain high standards of Health, Safety, Environment, Quality & Security
5
Investor Presentation
Sembawang Engineers and Constructors Pte Ltd – (SEC)
• Acquired by Punj Lloyd in June 2006 and headquartered in Singapore
• Over 29 years of professional excellence in Civil Infrastructure & Buildings, Utilities, Transportation,
Environmental & Power sectors.
• Fulcrum of activities centering around Project delivery and Project development underwriting.
• In Project delivery underwriting, one of the leading EPC company in Singapore
• having operations across Singapore, Hong Kong, Indonesia etc
• Have taken diverse spectrum of complex projects in specialized area of mega infrastructure,
high rise building & utility work
• Expended into project development underwriting (Coal Mining & Commercial Real Estate etc) to
enhance competitiveness improve value-adds and to diversify revenue base.
• Revenues as on March 31, 2010 – S$ 325 million & Order backlog as on December 2010–S$ 893
million.
• Employee strength of 511
• Only Construction Co. to have been awarded the main construction contract for both integrated
resorts in Singapore – The Resorts at Sentosa & the Marina Bay Sands (MBS).
• 1st Local contractor to win more than S$ 1 billion orders in a single year.
• Acquired certificates of ISO 9001, ISO 14001 and OHSAS 18001 for quality, environmental and
safety, respectively
6
Overview
Investor Presentation
PL Engineering Ltd
7
Overview
PL Engineering, a subsidiary of Punj Lloyd and headquartered in Gurgaon, India, is a multi-disciplinary
Design and Engineering Company.
• Engineering services for Oil & Gas, Petrochemical/ Chemical, Power (Thermal & Nuclear),
Infrastructure, Polysilicon, Automotive & Aerospace industry
• Complete offering from Concept to Commissioning
• Pre–Bid Engineering
• FEED (Front End Engineering Design)
• Detailed Design & Engineering
• Engineering support during Procurement/ Construction
• Works as captive for Group companies as well as serves Global Clients
• Offices in India, Middle East, UK & South East Asia
• One of the few Engineering Company qualified by Department of Atomic Energy, India for doing
engineering for Nuclear Power Plant
• More than 750 people
• ISO 9001 certified
Investor Presentation
Professional and Experienced Management
LUV CHHABRADirector – Corporate Affairs
ATUL PUNJChairman
Awarded „First Generation
Entrepreneur of the Year 2008‟
by CNBC TV 18
P.K. GUPTADirector
NITEN MALHANManaging Director
Warburg Pincus
DR. NARESH KUMAR TREHANChairman
Medanta
SANJAY GOPAL BHATNAGARCEO,
WaterHealth International (WHI)
BOARD OF DIRECTORS OTHER KEY MANAGEMENT PERSONNEL
SANJAY GOEL
CEO – PL Engineering
RIC GROSVENORPresident & CEO
Sembawang E & C
RAVINDRA KANSALPresident & Jt. CEO -
Middle East, Africa & CIS
PARDEEP TANDONPresident & CEO – Buildings &
Infrastructure (ME & Africa)
ATUL KUMAR JAINPresident & Jt. CEO -
Middle East Africa & CIS
NAMIT KAPURPresident – Training &
Leadership Development
S S RAJUPresident & CEO -
Infrastructure, India
SHIVENDRA KUMARPresident & CEO
Energy – South Asia
V P SHARMAPresident – Offshore
RAJU KAULGroup Chief Financial Officer
DINESH THAIRANIGroup Head –
Legal & Inter Audit,
Company Secretary
ANIL JAINExecutive Vice President
& Head – Investor Relations
INDEPENDENT DIRECTORS
PHIROZ VANDREVALAExecutive Director,
Tata Consultancy Services
MS EKATERINA SHARASHIDZE
Ex. Minister of Economic
Development, Govt. of Georgia
NON –INDEPENDENT NON EXECUTIVE DIRECTOR
8
MITHLESH SATIJA Chief Risk Officer
Investor Presentation
9
CASPIAN
PUNJ LLOYD KAZAKHSTAN LLP
ATYRAU
ASIA PACIFIC
PUNJ LLOYD PTE LTD
SINGAPORE
REGIONAL HEADQUARTERS
MIDDLE EAST
PUNJ LLOYD LTD
ABU DHABI
SOUTH ASIA
PUNJ LLOYD LTD
GURGAON
EUROPE
PUNJ LLOYD LTD
UK
AFRICA
PUNJ LLOYD LTD
LIBYA
SUBSIDIARIES
PUNJ LLOYD INFRASTUCTURE
LTD
INDIA
PUNJ LLOYD DELTA
RENEWABLES PVT. LTD
INDIA
PUNJ LLOYD UPSTREAM
LTD, INDIA
SEMBAWANG ENGINEERS &
CONSTRUCTORS PTE LTD
SINGAPORE
PL ENGINEERING LTD
INDIA
DAYIM PUNJ LLOYD
CONSTRUCTION
CONTRACTING CO LTD
SAUDI ARABIA
JOINT VENTURE COMPANIES
KAEFER PUNJ LLOYD LTD
INDIA
THIRUVANANTHAPURAM ROAD
DEVELOPMENT COMPANY LTD,
INDIA
Organisational Structure
Investor Presentation
Global Presence – The Group
INDIA UK
BAHRAIN
TURKMENISTAN
KAZAKHSTAN
OMAN
LIBYA
SINGAPORE
HONG KONG
THAILAND
INDONESIA
MALAYSIA
VIETNAM
CHINA
UAE
SAUDI ARABIA
QATAR
YEMENIRAN
10
KENYA
Investor Presentation
Journey & Major Milestones – The Group
Construction
Construction
and
Management
Procurement
and
Fabrication
Engineering
and
Design
Moving up the
construction value chain
with a broadened
geographic footprint and
service offering
201020092008200720062005200420021999199719941993
1st EPC contract
in oil & gas sector
Large Diameter
gas pipeline
contract by GAIL
1983 1992 1995 1996 1998
1st overseas
pipeline contract
in swamp &
shallow water
1st highway
construction
project
1st Thermal
power project
5 Refinery
Projects
(including two
EPC Refinery
Projects)
1st LNG Terminal
Longest stretch
of pipeline
557 km
1st
Middle East
contract
1st overseas
contract –
Indonesia
1st
pipeline
project
Entry into
Caspian region
1st Overseas
EPC Pipeline
contract in
Offshore
EPC Storage
Terminal contract
in Asia Pacific
1st LPG
Cryogenic Tank
Project
1st EPC (India)
pipeline contract
in offshore
1st Refinery
Project
Acquired
Sembawang
Engineers &
Constructors Private
Limited
Punj Lloyd
Upstream Ltd
incorporated
World largest single
stream LDPE Plant
in U.K.
Group forays into
Solar Utility space
Opens offices in
Hong Kong,
Turkmenistan and
Thailand
World largest wheat
to Ethanol biofuel
plant in U.K.
11
Investor Presentation
Major Breakthroughs – The Group
South East Asia‟s most
advanced Underground
Expressway including 9
km tunnelOnly Indian Co.
to be awarded
Pipeline of the century –
BTC pipeline
Constructed Changi‟s
Water Reclamation Plant &
Resorts World at Sentosa
130 years of
experience in
polymers
& petrochemicals
3 LNG Terminals and LPG
tank farms in India and
over 300 tanks globally
Singapore‟s
LRT / MRT
Changi Airport
Terminal Extension
Nuclear > 3 million
engineering man hours
World‟s largest
Wheat based
Bioethanol Plant
All terrain pipeline
specialists,
With over 10,000 km,
larger dia pipelines
Executing Power Projects
for more than 2240 MW
as EPC Contractor (BOP)
12
Investor Presentation
Offshore Pipelines
• Uran Trombay Oil & Gas Pipeline Projects, India
• Tunu Field Development Phases 4-9, Indonesia
• Panaran Pemping Gas Pipeline, Indonesia
Offshore Platforms
• Heera Redevelopment Offshore Platform, India
• Betara Complex Development Project, Indonesia
• South Utility Platform (TP 11 S / EPSC 5), Indonesia
• Poleng Process Platform, Indonesia, Indonesia
Pipelines, International
• Sabah Sarawak Gas Pipeline, Malaysia
• Strategic Gas Transmission project, Qatar
• Gas Export Pipeline, Oman
• OGC Pipelines, Oman
• EPIC of Doha Urban Pipeline Relocation, Qatar
• EPC for Oil & Gas Export Pipelines, Kazakhstan
• South Sumatra to West Java Gas Pipeline Phase I,
Indonesia
• Asab Gas Development Project Phase II, Abu Dhabi
• Ethane Butene Pipeline, Abu Dhabi
• Baku-Tbilisi-Ceyhan Pipeline, Turkey and Georgia
• KAM Pipeline Project, Kazakhstan
Pipelines, India
• East West Gas Pipeline
• Dahej-Vijaipur Pipeline
• Dabhol-Panvel Pipeline
• Dahej-Uran Pipeline
• Mundra-Delhi Pipeline
• Mangalore-Bangalore Multi-Product Pipeline
• Jamnagar-Loni LPG Pipeline
• Kandla-Bhatinda Multi-Product Pipeline
Refineries/ Offsites & Utilities/ Field Development
• Yemen LNG Project for Utilities & Offsites, Yemen
• Fuel Systems New Doha International Airport, Qatar
• Peciko Field Development Phase 4, Indonesia
• Motor Spirit Quality Upgradation Project, Barauni
Refinery, India
• Hydrocracker Unit & Hydrogen Generation Unit,
Haldia Refinery, India
• Delayed Coker Unit and LPG Merox Block, Vadodara
Refinery, India
• Sulphur Block, Bharat Oman Refinery, India
• Coker Island of DCU, Mangalore Refinery, India
• Shah Gas Gathering Package I, Abu Dhabi
• Huwailah Flowline, Wellheads & Transfer Line
Project, Abu Dhabi
Major Projects & Service Offerings – The Group
Airports
• Terminal extension, runways, hangars and control
towers, to support facilities such as training centers,
freights and cargo terminals, in-flight catering
centers and MRT system for Asia‟s major aviation
hub, the award winning Changi Airport, Singapore
• The greenfield airport project in Sikkim, India
13
Investor Presentation
Tankage and Terminals
• Offsite & Storage Facilities for Panipat Refinery
• Bulk Liquid Storage & Blending Facility at Meranti &
Jurong, Singapore
• Tank Terminal Project at Pulau Busing Tankstore,
Singapore
• LNG Storage Tank Expansion, Dahej
• Low Storage for Receiving Terminal, Hazira
• LNG Storage and Regasification Terminal, Dabhol
Polymers & Petrochemicals
• EPC for 300 KTPA LDPE Plant, Thailand for PTT
Polyethylene Co
• FEED & EPC for 400 KTPA LDPE Plant, UK
• EPC for 300 KTPA LDPE Plant, Iran
• EPC for 250 KTPA Polystyrene Plant, Iran
• 400 KTPA LDPE Plant, China
• 226,000 TPA LDPE Project, Jubail, Saudi Arabia
• EPC of Polyurethane Plant, Seraya, Jurong Island,
Singapore
• EPCM for 70,000 MTPY PA Plant, China
Renewables
• Commissioned World‟s largest wheat based ethanol
plant in the UK
• Five prestigious turnkey solar power projects from
Punjab Government
• India‟s largest solar based EPC project in Bihar
implementation of 850 Solar-Powered Water
Treatment Plants
Thermal
• EPC 3 x 700 MW Power Plant - BOP Components,
erection of Turbine & Generator and Coal and Ash
Handling Plants, Malaysia
• EPC High Pressure piping system for 150 MW Paka
Power Plant, Malaysia
• 2 x 270 MW Thermal Power Station, Dhariwal
Infrastructure, Maharashtra, India
• 2 x 250 MW Thermal Power Station, Rajasthan Rajya
Vidhyut Utpadan Nigam Ltd., Rajasthan, India
• 6 x 600 MW Thermal Power Plant, SEPCO,
Chhattisgarh, India
• 4 x 250 MW Jindal Power Plant, Chhattisgarh, India
Nuclear
• Upgrade of Britain‟s Submarine Refit Complex at
Devonport
• Nuclear Fuel Reprocessing for Sellafield Facility, UK
for BNFL
• New Fuel Oxide Plant for BNFL, UK
• Vitrification Plant for BNFL, UK
• Rajasthan Atomic Power for Nuclear Power Corp. of
India, India
Commercial Complexes
• Tianjin International Building, China
• The Exchange and Yangtze Plaza, China
• German Centre for Industry & Trade, Singapore
Major Projects & Service Offerings – The Group
14
Investor Presentation
Hotels & Resorts
• Marina Bay Sands Integrated Resort‟s, North Podium
comprising the Casino, Theatres and Retail Arcade,
Singapore
• Hotels, Beach Villas, Oceanarium and Water Theme
Park for Resorts World Sentosa, Singapore
Healthcare Facilities & Hospitals
• Medanta, The Medicity, India
• Singapore National Eye Centre, Singapore
• Changi General Hospital Substructure Package,
Singapore
Residential Complexes
• The Jumeirah Islands Villa Project, Dubai
• The Edge on Carnhill, Singapore
Subway & Metro Systems
• Expansion of the existing MRT network including New
Circle Line and DownTown Line in Singapore
• Design and construction of Elevated Viaduct including
structural work of four Stations for Delhi Metro Rail
Corporation, India
• Construction of Eight Stations and Viaduct, Bangalore
Metro Rail Corporation, India
Tunnels & Caverns
• Paya Lebar Tunnel, design and construction of 5.1 km long
by 6.5 m internal diameter by 30 m deep tunnel and 6
shafts, Singapore
• Kranji Tunnel, design and construction of 12.6 km long by
3.6 m internal diameter tunnel and 10 access Shafts,
Singapore
Highways & Expressways
• Upgradation of the Belgaum-Maharashtra Border Highway
Section of NH-4 in Karnataka, India
• Construction of National Highway No 9, GMR Hyderabad
Vijayawada Expressways, India
• Projects for the Golden Quadrilateral including East West
and North South Corridors, India
• Singapore Kallang-Paya Lebar Expressway, Singapore
• Tunnel Structure Linking East Coast Parkway with Nicoll
Highway, Singapore
• Vadodra-Halol Tollway, India
Seaports & Terminals
• Pulau Seraya Oil Tanking Terminal, Singapore
• Finger Pier Extension, Singapore
Bridges, Flyovers & Interchanges
• Construction of 330 m causeway to Pulau Brani and a
280 m long bridge to Sentosa, Singapore
• Construction of interchange at junction of Seletar/
Central Expressway/Yio Chu Kang Road, Singapore
Major Projects & Service Offerings – The Group
15
Investor Presentation
Superior Execution Capabilities – Key Differentiators
Shorter Execution Cycle
An established track record for successful
completion of projects within tight schedules, in India
& International markets
Reputation for undertaking highly challenging
engineering and construction projects
• 506 km 42” dia Dahej – Vijaipur Gas pipeline
which was completed within a span of 9 months
• Lowering of 21 km of 48” dia gas pipeline project
at Oman in a single day.
Risk Management
Information Technology
3 Tier risk management process is followed
• Identification of risk covering entire business and
project life cycle
• Developing risk mitigation strategies in terms of
early detection of risks & timely implementation of
counter measures
• Monitoring the process by way of various
exceptional reporting and its analysis
Evaluation of risks in terms of rewards & risk
tolerance before any decision making
Optimal resource utilization through Oracle ERP
“Bid Decision” system for efficient project bidding
process
Best of breed project management solutions
Cost efficiencies and controls through eSourcing &
Reverse Auctions
Satellite technology used to ensure real time flow of
information from project sites
Equipment
Own large Fleet and wide variety of sophisticated
construction equipment including 56” wide pipe
laying equipment and Barges.
Equipment fleet of over 13000 items in 200
categories valued at USD 400 Million
Central Workshop at Gwalior with modern facilities
and dedicated, trained & professional staff to
repair/overhaul all the equipment in–house.
Enterprise Asset Management which is part of
Oracle ERP, software to manage all equipment
across its sites all over the world.
16
Investor Presentation
Marquee Client Base
17
Investor Presentation
` Cr.
Consolidated Financial Position
18
S. N Particulars FY07 FY08 FY09 FY10 FY11
1 Net sales & Contract Revenue 5,127 7,753 11,876 10,448 7,850
2 Other Income (excl Interest Income) 49 90 116 414 317
3 Total Sales & Contract Reveue (1+2) 5,176 7,843 11,992 10,862 8,167
4 Total expenditure 4,752 7,112 11,608 10,320 7,546
5 EBIDTA (3-4) 424 731 384 542 621
6 Interest Expense 83 129 216 307 357
7 Interest Income 30 28 10 13 21
8 Depreciation 106 147 177 227 269
9 PBT (5-6+7-8) 265 483 1 21 16
10 Tax 69 123 226 137 66
11 PAT (9-10) 196 360 (225) (116) (50)
12 Cash Profit (8+11) 302 507 (48) 111 219
13 Equity Share Capital 52 61 61 66 66
14 Networth 1,279 2,743 2,485 3,028 2,984
Ratios
1 EBIDTA as % of Sales (5/1) 8.2% 9.3% 3.2% 5.0% 7.6%
2 ROCE 12.9% 15.1% 5.8% 7.6% 6.2%
3 Basic EPS (`) 7.54 12.65 (7.42) (3.37) (1.54)
4 DPS (`) 0.30 0.40 0.30 0.15 0.15
5 Book value per Share (`) 48.9 90.4 81.9 91.2 89.9
6 Net Debt to Equity (Times) 0.54 0.33 1.11 1.27 1.12
7 Current Ratio 1.52 1.70 1.69 2.30 2.11
Investor Presentation
Contract Revenue by Region / Segments
For FY 2011
By Geography
Diversified geographical mix
By Business Segment
Operations across multiple segments
For FY 2011
19
Investor Presentation
Shareholding Pattern & Market Summary
20
FIIs10% MFs /
Banks
13%
Promoters Group37%
Public40%
IPO January 2006
Stock Split
(FV ` 10/– to FV ` 2/–)April 2007
BSE Code 532693
NSE Code PUNJLLOYD
NSDL / CDSL – ISIN INE701B01021
Bloomberg Code PUNJ:IN
Reuters Code PUJL.BO
As on June 30, 2011
Investor Presentation
Consolidated Annual Operational Results
5,176
7,843
11,992 10,862
8,167
12.89%
15.15%
5.80%
7.61%6.24%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
2000
4000
6000
8000
10000
12000
14000
FY07 FY08 FY09 FY10 FY11
RO
CE
%
Re
ven
ue
(` C
r.)
Revenue ROCE %
REVENUE
EBITDA
424
731
384
542621
8.19% 9.32%
3.20%
4.99%
7.60%
3%
6%
13%
25%
50%
100%
0
100
200
300
400
500
600
700
800
FY07 FY08 FY09 FY10 FY11
EBIT
DA
Mar
gin
(%
)
EBIT
DA
(`C
r.)
EBITDA EBITDA Margin
21
Investor Presentation
Industry Overview – India
Engineering construction activity
integral to energy industry,
infrastructure and industrial
development
Industry Characteristics
Dominated by a few industry
majors in Oil & Gas Segment
High barriers to entry
Credibility and experience
provides competitive edge
Industry is witnessing high
growth
1
2
3
4
5
Key Industry Drivers
Highways/
Roads• Huge investment
planned
• GOI Attracting FDI
for infrastructure
projects
• US$ 98 billion
investment required
for roads
Oil• Oil prices leading to
larger investments
in upstream and
downstream
sectors
• Increasing demand
from Asia
Power• Supply shortage
• India has one of
the lowest
electricity
consumption levels
• US$ 251 billion
allocated for Power
Sector in the 12th
plan
Construction
and
Engineering
Demand
Gas• LNG considered as
the fuel of the
future
• Cheapest to
transport through
pipes
Ports• Huge investment
plans
• The number/
capacity of ports
are much less as
compared to cargo
movements.
22
Investor Presentation
Increased Emphasis on Indian Infrastructure
Average GDP growth rate (2008–12)
Growth in economy will spur requirements for Infrastructure growth
• Increased budgetary allocation for infrastructure projects
• The expected infrastructure investment in the Twelfth Plan is US$ 1 trillion
• World bank is likely to lend $15bn to $20bn to India's Infrastructure Sector
• Efforts to raise funds from multi–lateral financial development institutions
(Source: India Infrastructure Research Magazine)
Fund Allocations in 12th Plan (US$ bn)
(Source: United Nations Statistical Division)
…. Infrastructure spends at less than 5% of GDP
12th plan
23
Investor Presentation
Huge Investments Required to Meet Power Demand in India
1,700 4,600 13,00028,000
66,000
112,000
212,000
-
50,000
100,000
150,000
200,000
250,000
1950 1960 1970 1980 1990 2005 2012E
(MW
)
• India has been able to achieve an economic growth rate of 8% p.a. during last few years and is poised to achieve
double digit growth rate.
• During the period 2007–12 average economic growth rate has been projected at 9% per annum. To sustain this
economic growth power sector has to also grow by 9%.
• To revamp the Power Sector, number of path breaking initiative have been taken in the recent past, both in terms of
policy pronouncements and programs ranging from bringing about efficiency in generation segment areas and
consolidation of electricity delivery system.
• The present Inter regional capacity is 11,500 MW and projects in hand indicate that this capacity would be enhanced to
30,000 MW by 2012.
Installed Capacity
Largest Investment Opportunities in Power Sector
Per Capita Consumption of Electricity
(Source: Ministry of Power, GOI website)(Source: United Nations Statistical Division)
24
Investor Presentation
25
Growing Globally Oil, Gas & Energy Demand
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
OECD
North
America
China OECD
Europe
Other Asia Africa RussiaM iddle East OECD
Pacific
Other Latin
America
India Other
Transition
Economies
Brazil
Cu
mu
lati
ve
In
ve
stm
en
t (b
illio
n
do
lla
rs)
0%
5%
10%
15%
20%
25% Sh
are
in G
lob
al In
ve
stm
en
t
Regional Demand
(Million barrels per day)
• Given the latest upward revision in world GDP (grossdomestic product), world oil demand growth is forecastat 1.23 million barrels per day (bpd) averaging 87.3million bpd in 2011, 50,000 bpd higher than last month'sestimate and 89 million bpd by 2014
• Demand for Oil remains resilient in face of high oilprices.
(Source: IEA; Oil Market Report; June 2010)
Major Global Oil Demand Growth 2008–10
Growth Drivers
(Source: International Energy Agency; IEA Working Party on Fossil Fuels; May 2004)
PLL‟s Target Market
Energy Investment by Region 2001–2030
• More than US$ 16 trillion needs to be invested inenergy–supply infrastructure over next three decades
• Oil & Gas Sector would each account for more thanUS$ 3 trillion or around 19% of total investment
• Half of the total investment is expected to take placein developing countries
• India is expected to contribute to expectedexpenditure
Growth Drivers
Investor Presentation
26
Significant Opportunities in Pipeline Construction across the World
• Total natural gas consumption worldwide increases by 44% in the IEO2010, from 108 trillion cubic feet in 2007 to 156trillion cubic feet in 2035
• Driven by increasing demand for oil and gas, Asia Pacific is expected to witness the largest addition of pipelines in theworld. It is expected to undergo a network addition of North America with 33,320 Km and Europe with 20,350 Kmnetwork.
• Export Pipeline systems will expand to bridge the demand supply gap in mature economies
Pipelines Under Construction/On Drawing Board Large Pipeline additions through 2030
Volumes of Transportation Facilities Expected to Rise Substantially
North America – 28,
099
South/Central America
and Caribbean – 9,869
Africa –
7759
Middle East –
9,345
FSU – Eastern Europe –
18,896
Western Europe and EU Countries
– 4,445
Asia Pacific Region –
41,525
Mileage Totals –
36,304 Under
Construction
83,634 Planned
119,938 Total
(Source: Pipeline & Gas Journal / Goliath : Feb 2010) (Source : Pipeline & Gas Journal – January 2011)
Investor Presentation
Industry Overview – Singapore
• Singapore‟s total construction demand from
2012 to 2015 is likely to be between S$19
billion and S$26 billion annually
• Transport infrastructure is a major focus
area for government investment program.
• Though power sector opportunity are
limited in Singapore due to matured market,
but EPC companies are likely to witness
demand due to the upgrading or extension
of existing power facilities
%S$ billion
(Source: Building and Construction Authority of Singapore, Department of Statistics, Frost & Sullivan. (1) 2011 values for construction demand are a mean of the range of values forecast for the year.)
Civil
Infrastructure
and Building
• The Singapore government plans to invest around S$60 billion to further expand and double the
country‟s existing MRT network to 278km by 2020
• [S$300 million – S$400 million] is earmarked for the development of expressways annually
Environmental
• The water sector has been identified as one of the key growth areas and its contribution to
Singapore‟s GDP is expected to increase from S$500 million in 2003 to S$1.7 billion in 2015 at a rate
of more than 10%
Property
• Total retail sales to increase by 9.2% from S$42.5 billion in 2011 to S$46.4 billion in 2014
− This steady growth translates into increasing demand for retail buildings and a significant
opportunity for EPC companies and investors
Industrial and
Process
• The growth of the petroleum, chemicals and pharmaceutical industries are likely to catalyze a new
wave of high–value downstream investments in Singapore's chemical industry which will generate
significant opportunities for EPC companies
27
Investor Presentation
28
Industry Overview – Hong Kong
• GDP of Hong Kong is expected to grow
around 8% in 2010
• Services are the major part of GDP
contributing nearly 90%
• Major investments planned in Inland and
Cross-boundary rail transportation
– HKD 110 billion of contracts awarded in last 5
years for development of existing MTR
commuter network
– Nearly HKD 12 billion contracts awarded for
Harbour Area Treatment Scheme
– Several contracts for Sewerage treatment
awarded
• Major projects announced in 5 year plan
announced in 2011
– Guangzhou-Shenzhen-Hong Kong Express rail
link
– Hong Kong-Shenzhen western express line
– Hong Kong-Zhuhai-Macao Bridge
– Development of Qianhai New District,
Schenzhen
– Development of Nansha New District,
Guangzhou
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
r
Mill
ion
HK
D (
curr
en
t m
arke
t p
rice
s)
Hong Kong GDP
(Source: Census & Statistics Department, Government of Hong Kong)
(Source: Highways Department, Government of Hong Kong)
Investor Presentation
29
Retail Property and Construction Outlook – China
• Future growth is expected from tier-two and tier-
three cities given higher GDP growth and low
construction per capita
• Increasing trend of relocation to tier-two and tier-
three cities due to increasing costs of living and
doing business in tier-one cities
• Increasing requirements for large-scale retail
malls due to:
• Increasing urbanization
• Rising disposable income
• Aspirational lifestyle of the Chinese consumers
• Regulatory environment
• Funding is difficult due to current restrictive
monetary policies
• Access to low-cost funding provides competitive
advantage
• Attractive opportunity for both local Chinese and
foreign developers
• Expected strong growth in the retail malls sector
• Lower operating costs in tier-two and tier-three
cities
• Top companies are state-owned enterprises
• Foreign companies generally seek out mutually
beneficial arrangements with local companies:
the foreign company gets access to the high-
growth Chinese market, while the local
companies benefit from learning about new
construction technologies and techniques
Significant
growth
potential in
tier-two
and tier-
three cities
Growth in Disposable Income per Capita
Construction Per Capital (RMB), 2004 - 08
(Source: Frost & Sullivan, National Bureau of Statistics of China)
Investor Presentation
30
Industry Overview – Africa• $ 1.6 trillion – Africa‟s GDP in 2008 (roughly equal to
Russia‟s or Brazil‟s)
• The economy grew @ 5% for the last 10 years making it the
world‟s 3rd largest growing region
• Improving political stability – A positive for new investments
• Infrastructure is seen as key bottleneck to economic growth
in the region
• Infrastructure is expected to grow @ 9% in the next 10 years
• Current African spending is about $72 Billion
• China is leading the infrastructure development in Africa with
a total of $15 billion investments during 5 years (2003-2007)
(Source: Lions on the move: The progress and potential of African economies, Mckinsey
Global Institute report)
Investor Presentation
31
• Abundant availability of OiI & Gas to drive Exploration
& Production activity
• Proven oil reserves of 127.7 billion barrels about 10%
of global proven reserves
• Oil production of about 10 million barrels per day
• 521 trillion cubic feet of Natural gas proven reserves
(about 8% of global proven reserves)
(Source: Statistical review of world energy 2010, British Petroleum report).
Table: Oil – Production & Reserves in Sub-Saharan African Countries
Oil & Gas supply & Infrastructure in Sub-Saharan African Countries
Increasing Global demand for Oil and gas
coupled with rising prices have led to
significant increase in investments in African
Oil & Gas assets and will continue to drive
growth in future
Africa – Oil & Gas
Investor Presentation
Awards & Accolades – PLL
32
PUNJ LLOYD GROUP
• Ranked no. 58 under international contractors category by ENR.com in 2010
• Ranked no. 104 under global contractors category by ENR.com in 2010
• Infrastructure Company of the Year – 2010 (CNBC/Essar)
• Infrastructure Excellence Award‟ in the Oil & Gas category for the Dahej–Vijaipur Gas Pipeline – 2009
• Chemtech Award – Outstanding contribution to Engineering – 2009
• Dun & Bradstreet – Rolta Corporate Awards 2008
• Best Infrastructure Award NDTV Profit Business Leadership Awards 2008
• Top Indian company „Construction – Infrastructure Development‟
PROJECT EXPORTS PROMOTION COUNCIL OF INDIA
• Maximum Value of Overseas construction and engineering projects contracted for year 2005–2006 / 2007
• Maximum Turnover in Overseas construction contracts for year 2004–2005 / 2006–7
• Maximum Foreign works secured in new areas for Year 2002–03 / 2003–04 / 2004–05
AWAREDED BY GREENTECH FOUNDATION
• 2004 – Safety Award – BTC Pipeline Project
• 2005–06 – Environmental Excellence – Gold
• 2007 – Safety – Gold
• 2008 – Environment Excellence – Platinum – Safety Gold
• 2009 – Environment Excellence – Gold
• 2010 – Safety Award – Gold
Investor Presentation
2011
2010
2009
Awards & Accolades – SEC
2008
2000
1994
Workplace
Safety and
Health Award
(Silver)
Land Transport
Excellence
Awards
for Safety
Excellence
Category
33
Investor Presentation
34
Business Strategy and Future Outlook
Expand operations to
other industries and
target high potential
project segments
Continue to expand
operations in India and
internationally
Continue to focus
on health, safety
and environment
standardsDevelop and maintain
strong relationships with
our clients and strategic
partners
Focus on performance,
timely project
execution and
Improvement in debt
leveraging
Further enhance our
engineering and design
capabilities
Continue to focus on
EPC contracts from
clients as well as
contractors
Investor Presentation
35
Contact Us
ANIL JAINHead – Investor Relations
Punj Lloyd Group
Direct Tel. No.: 91–124– 2620221
E–Mail – [email protected]
RIPUDAMAN SINGH Executive – Investor Relations
Direct Tel No.: 91–124–3393303
E–mail – [email protected]
Corporate Office
Punj Lloyd Ltd
78 Institutional Area
Sector – 32, Gurgaon – 122 001
Tel. No.91–124–2620123
Fax No.91–124–2620111
Website : www.punjlloydgroup.com
Investment & Financial Communication Advisor
GAVIN DESA / SAMEERA KEDAR Citigate Dewe Rogerson
Tel. No.: 91–022– 6645 1237 / 1261
Fax: 91–022–6645 1200
E–Mail – gavin@cdr–india.com / sameera@cdr–india.com
Thank You