Adani Enterprises Limited

Investor Presentation
Growth
With
Goodness January 2019
Legal Disclaimer
Certain statements made in this presentation may not be based on historical
information or facts and may be “forward-looking statements,” including those
relating to general business plans and strategy of Adani Enterprises Limited
(“AEL”), its future outlook and growth prospects, and future developments in its
businesses and competitive and regulatory environment, and statements
which contain words or phrases such as ‘will’, ‘expected to’, etc., or similar
expressions or variations of such expressions. Actual results may differ
materially from these forward-looking statements due to a number of factors,
including future changes or developments in its business, its competitive
environment, its ability to implement its strategies and initiatives and respond
to technological changes and political, economic, regulatory and social
conditions in India. This presentation does not constitute a prospectus, offering
circular or offering memorandum or an offer, or a solicitation of any offer, to
purchase or sell, any shares and should not be considered as a recommendation
that any investor should subscribe for or purchase any of AEL’s shares. Neither
this presentation nor any other documentation or information (or any part
thereof) delivered or supplied under or in relation to the shares shall be deemed
to constitute an offer of or an invitation by or on behalf of AEL.
AEL, as such, makes no representation or warranty, express or implied, as to,
and does not accept any responsibility or liability with respect to, the fairness,
accuracy, completeness or correctness of any information or opinions
contained herein. The information contained in this presentation, unless
otherwise specified is only current as of the date of this presentation.
AEL assumes no responsibility to publicly amend, modify or revise any forward
looking statements, on the basis of any subsequent development, information
or events, or otherwise. Unless otherwise stated in this document, the
information contained herein is based on management information and
estimates. The information contained herein is subject to change without
notice and past performance is not indicative of future results. AEL may alter,
modify or otherwise change in any manner the content of this presentation,
without obligation to notify any person of such revision or changes.
No person is authorized to give any information or to make
any representation not contained in and not consistent with this presentation
and, if given or made, such information
or representation must not be relied upon as having been authorized by or on
behalf of AEL. This presentation is strictly confidential.
This presentation does not constitute an offer or invitation
to purchase or subscribe for any securities in any jurisdiction, including the
United States. No part of its should form the basis of or be relied upon in
connection with any investment decision or any contract or commitment to
purchase or subscribe for any securities. None of our securities may be offered
or sold in the United States, without registration under the U.S. Securities Act
of 1933, as amended, or pursuant to an exemption from registration therefrom.
This presentation is confidential and may not be copied or disseminated, in
whole or in part, and in any manner. This presentation contains translations of
certain Rupees amounts into U.S. dollar amounts at specified rates solely for
the convenience of the reader.
2
Contents

Adani Group

Company Profile

AEL: Coal Mining & ICM

Adani Wilmar Ltd

Mundra Solar PV Ltd

Others

Carmichael Mine, Australia

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

Inadequate investments in the Raising middle class aspirations

past resulted in insufficient requires massive investments in
infrastructure Infrastructure and Energy

World’s fastest growing economy – Encouraging policy initiatives

6th largest in the world today & augur well for growing Private
estimated to be 3rd largest by 2030 Sector participation

Growing Infrastructure
& Energy Requirements

INFRASTRUCTURE ENERGY

• 90% of volume and 72% of value of India’s international trade is by sea. • India has per capita electricity consumption of 1010 kwh - one of the
Shortage in port capacities are expected to increase medium term lowest in the world

• India has low road density of 4.6 km / 1000 person (~60% unpaved • Thermal capacity is 45% energy consumption basket; to remain mainstay
roads) resulting in road speed of 30-40 km/hr vs world avg 60-80 km/hr for energy requirements

• Logistics costs in India are among the highest in the world - 13-14% of • Renewable generation capacity growing at ~25%; expected to be ~40%
GDP vs 8% global average share in capacity by 2027 (per CEA)

• ~6% Indian travels by Air (amongst lowest in the world); fastest growing • Historically significant under-investment in Transmission & Distribution;
& expected to be 5th largest aviation market by 2025 investment opportunities of US$ 100 bn over next 5 yrs

• India has among the highest food losses in the world; Adani an early • Natural Gas contributes 6% in India’s energy basket, expected to be 20% by
entrant in Agri infrastructure 2025; envisage investments of US$ 16+ bn in next 10 yrs

Adani Group is a market leader among private sector participants across both Infrastructure & Energy Sector and is well placed to
participate in these key nation building efforts

4
 The Making of India’s Leading Infrastructure & Energy Group (1988 – 2018)
1988 1995 2002 2009 2018

Coal ICM Commenced Integrated

Started (1999) #2 ICM player in the
world Coal
Commodity
Management
Gautam Adani Trading Awarded India’s
Listed in 1994
Chairman 1st MDO
(2006)
Acquired Carmichael
Acquired Bunyu
coal mine Australia
Coal Mine
(2010)
Indonesia (2008)

Mundra Port
Commenced Coal Mining
operations
(1995) (MDO)
1995
50: 50 JV with
Commissioned
Wilmar International
(2000) Mundra Solar PV plant
(2017)

Grain Silo Depot Solar

commissioned at 7
2002 locations (2007)
Manufacturing
Llsted in
(MSPVL)
1st CNG Station
Listed in 2009 Ahmedabad Awarded Grain Storage
2007 (2004) business from MP state

“Fortune”
Largest Food
2009 Commissioned
Mundra unit
1st transmission FMCG brand in
line JV with India
Acquired (2009) commissioned IOC (2014)
Dhamra Port Worlds Largest
(2009)
(2014) Single location Agro
Solar Power Plant Awarded
Acquired 1,200 MW 22 GAs
(648 MW) (2017)
Udupi Thermal Power (Oct 2018)
Listed in 2015
plant (2015)
Operates 10 Project Commissioned
ports/terminals > 2GW by Mar 2018 Listed in
Nov 2018
2018 Bangladesh PPA Mumbai GTD acquisition
Signed (2017) (2018)
Listed June
2018
Adani Gas
AGL
Adani Ports Adani Power Adani Transmission Adani Green Energy
APSEZ APL ATL AGEL

FMCG = Fast-moving consumer goods

ICM = Integrated Coal Management 5
Adani Group – At a Glance
Largest private sector Infrastructure & Energy Group in India
180 MMT ~15% of India’s EXIM trade 10,440 MW ~5% of India’s Thermal Generation Capacity
3,695 MW ~5% of India’s Renewable Generation Capacity 12,540 Ckt Km ~3% of India’s Transmission Network

Promoter Group Promoter Group Promoter Group Promoter Group Promoter Group Promoter Group

74.9% 62.3% 75.0% 74.9% 86.6% 74.9%

Adani Enterprises Adani Ports and SEZ Adani Power Adani Transmission Adani Green Energy Adani Gas

–Coal Mining: leading Coal
MDO player in India
–Coal Logistics: ~50%
market share (66 MTPA)
–Agro commodities and
storage, ‘Fortune’ - India's
leading cooking oil brand
–India’s largest solar panel
& cell manufacturer (1.2
GW)
–India’s largest commercial
ports operator and
integrated logistics
Company
–10 Ports across Indian
coast with market share of
15% in India’s EXIM
–Multi-modal logistics
–Mundra SEZ (8481 ha)
–IG rated by Moody’s, S&P,
Fitch
–India's largest private
thermal power generator
with installed capacity of
10,440MW
–Low Merchant Risk – 95%
PPA (25 yr)
–Low Fuel Risk
• FSA 93% of domestic
coal based capacity
• Coal price pass-through
97% of import based
capacity
–PPA with Govt of B’desh
for 1.6 GW power project
–India’s largest private
transmission & distribution
company
–Installed Capacity
8,470ckt km; 12,000 ckt
km by March 2019
–IG rated by Moody’s, S&P,
Fitch
100%
AEML
–Acquired Mumbai GTD in
Aug 2018 for ₹130 Bn
–Serving 3 mn consumers in
suburban Mumbai (500MW
of captive generation)
–Renewables Capacity: –Leading Private Sector
3.7 GW CGD Company in India
–Focussed Pure Play Gas
–Solar: 65%; Wind: 35%
Marketing and Distribution
company
–Geographically
diversified portfolio
–Operational 4 GAs + 13
new Gas won in Oct 2018
–Diversified
Counterparties:
–IOAGPL – 50:50 JV with
Indian Oil Corporation with
SECI & NTPC – 56%,
authorisation in 18 Gas
SEBs – 44%
–Total authorization for 35
GAs (AGL + JV)

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
₹ 16,990 Cr ₹ 43,615 Cr ₹ 21,433 Cr ₹ 47,375 Cr ₹ 41,776 Cr ₹ 69,523 Cr ₹ 10,109 Cr ₹ 17,265 Cr ₹ 7,722 Cr ₹ 13,280 Cr ₹ 348 Cr ₹ 1,311 Cr
Market Cap: ₹ 17,707 Cr Market Cap: ₹ 80,291 Cr Market Cap: ₹ 19,651 Cr Market Cap: ₹ 21,820 Cr Market Cap: 6,529 Cr Market Cap: 11,086 Cr

Operational excellence
Massive scale Unmatched project Experienced management Track record of
Focus on productivity,
Largest in class execution & local expertise integrating acquisitions
lowest cost

Note 1: All the financials are from respective companies’ Annual Financial Statements dated 31 March 2018
2: Market cap is as of 31st December 2018
6
Adani Enterprises: a Diversified Incubator
Adani Enterprises: Key Strengths

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)

8
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
2001 • Solar Mfg plant commissioned
• Adani Gas Started
2015
• Demerger of APSEZ, APL & ATL
1996
• Bonus Issue of 1 : 1
2009
• APL IPO subscribed 21x
• Bonus Issue of 1 : 1

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

9
AEL: Corporate Structure

Promoters

75%
Adani Enterprises Limited
(AEL)

Coal MDO ICM **

(Division) (Division)

100% 51% 50% 100%

AWL
Adani Global MSPVL
(Edible Oil & Others
Mauritius (Solar Mfg)
Food)*

100%
AALL/AAFL
100% 100% (Agro Storage)
AGPTE AGFZE
Singapore Dubai 100% Defence
Road, Metro &
100% 100% 100% 100% 100%
AMPTY PTAG Railways
ASPL ABPL
Carmichael Bunyu Coal
Coal Mine Mine
Shipping Bunkering 100% Cement
(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

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

* AWL financials shown are on 100% basis

** ICM – Integrated Coal Management
10
Adani Enterprises : Exemplary Value Creation
EBIDTA Mix

AEL delivered CAGR of 36% since listing FY2012

Vs Others, 8%

Nifty CAGR of 9.4% & Sensex CAGR of 9.4%

500000 ICM, 28% APSEZ, 38%

50000
APL, 26%

5000
FY2018

9%
500
Coal

Solar Mfg 50% 25%

AGEL (Renewables)
50
AGL (CGD)

Others
11%
5%
AEL Nifty Sensex

Note: Chart value in log scale rebased to 100

11
Adani Enterprises : Consolidated Historical Financials
Particulars (₹ in Cr) FY 16 FY 17 FY 18 1H FY18 1H FY19
Revenue 35,131 38,056 37,984 18,038 16,930
Highly successful incubator
EBITDA 2,789 3,090 3,002 1,324 1,036
PAT 1,009 988 870 218 341 • Unparalleled track record of transforming
Basic and Diluted EPS (in ₹ ) 9.19 8.98 6.89 2.99 2.27 businesses from gestation to independence

• New ventures - Cement, Roads and Water

P/E 8.0x 7.5x 14.1x 8.9x 21.2x
EV / EBIDTA 5.0x 5.1x 5.1x 4.2x 7.8x

Net Fixed Assets (NFA) 18,135 21,399 15,966 25,270 16,082

Expansion of existing businesses
Total Assets 41,756 47,689 43,615 53,935 46,280
Total Long Term (LT) Debt 7,460 10,140 5,072 11,359 3,412 • Enhancing nationwide footprint in Agro
Total Debt 16,994 20,811 16,990 22,508 13,710 and food products
Total Net Worth (TNW) 13,463 14,698 15,588 15,104 14,811
• Strengthening order book in Coal MDO

EBITDA / Interest 2.1x 2.5x 2.3x 2.0x 2.2x

Net LT Debt / EBITDA 2.1x 2.7x 1.0x 2.7x 0.5x
Total Debt / EBITDA 6.1x 6.7x 5.7x 8.5x 6.6x Value creation

ROCE 12% 11% 10% 11% 9% • Demerger of AGEL - Listed in June 2018 –
Current Market Cap Rs 6,786 cr
ROE 7% 7% 6% 5% 7%

Note: 1. Debt figures exclude Intra-Group Borrowings / Shareholders loans • Demerger of AGL - Listed in November 2018
– Current Market Cap Rs 10,674 cr
2. Excludes Adani Wilmar (50% JV) now consolidated as per equity method per IndAS.
3. FY18 & 1H FY19 figures exclude AGEL and 1H FY19 excludes AGL – Discontinued Operations
4. 1HFY19 EBITDA impacted by foreign exchange MTM loss of Rs 368 cr

Note: 1. Per Indian Accounting Standard (IndAS) 2. Note: EBITDA = PBT + Depreciation + Net Finance Costs 3. Debt figures exclude Intra-Group Borrowings
12
 Mine Developer & Operator (MDO)
AEL:
Integrated Coal Management (ICM)

13
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
2017 2035
Coal Market 1062
/ Net exports/ imports in 2035 over 2017 levels
29%
945 44% 42%
51%

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

Source: Wood Mackenzie

14
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 5.0% Coal Consumption Growth and Regional Contributors
Coal Consumption by Region
4.0%
2,000 China India OECD Other Asia Other
3.0%
1,500
2.0%

1,000 1.0%

0.0%
500
-1.0%
-
2000 2010 2015 2020 2030 2040 -2.0%
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
1,200 500 96
100 87 86
457 80 78 82
76
429 Rest of World 80
800
416 Indonesia
397 60
316 Australia
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

15
 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 end
Rules, 2012 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 2015 204

Allocation & Auction 86
Category No. of Coal ~52 Bn Ton
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 Blocks 12
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 Blocks
CIL Coal Block for MDO 3 Commercial Mining 3
~2 Bn Ton
Grand Total 238 Kaniha , Siarmal, Pelma 2

70 Billion Ton
16
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%
2% Large Hydro 2%6%
4%
13%
10% Small Hydro
& Bio Mass
4% 326 GW Wind Power 472 GW 51%
13%
59%
Solar Power
13% 4%
Nuclear 12%

Coal based thermal power capacity @ 240 GW by FY 2023

270000
6420 2640 1980
9300
220000 14880
MW

11980 Additions Capacity

228323 234743 237383 239363
170000 204143 219023
192163 192163

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 17

Demand Supply of Thermal Coal

1200 MMT Supply Total Demand 1117

1050
988
1000 886 930
828 852 843
783
800 686 733
625 647
597
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 !!

18
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
Kente Extension • Land Acquisition, R&R
Peak Capacity – 7 MMTPA
• Obtaining Clearance
Parsa,
• Establishment of washery & reject based TPP
Peak Capacity – 5 MMTPA
(if applicable)
Jitpur,
Peak Capacity – 2.5 MMTPA • Planning, Developing & Operations

Talabira II & III • Operation of mine

Peak Capacity – 20 MMTPA
Gere Pelma-III
Peak Capacity – 5 MMTPA • Logistics solution

Average Estimated work

potential mine force of 3200
life of 30 years personnel
Operational Under Development

Map Source: http://clipground.com/clipart-maps-of-india.html MMTPA: Million Metric Tons/ Annum 19

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

Payments to MDO Coal Delivery by MDO

Mine Developer Facilitating in obtaining clearances, DPR / mine plan, Land

and Operator acquisition and R&R
(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 & Gare Pelma - Talabira II &

Parsa Kente Extension Gare Pelma -II Jitpur Total
Kante Basan III III
Owner RRVUNL RRVUNL RRVUNL CSPGCL Mahagenco NLC APL 7 Contract
Geological
516 256 200 210 736 589 81 2588
Reserves (MnT)
Mineable Reserves
451 184 160 (Est) 134 553 554 66 2102
(MnT)
Capacity
15 5 7 (Est) 5 23.6 20 4 80
(MTPA)
Status of Producing since Start in Start in Start in
Start in 2019 Start in 2018 Start in 2019
Production 2013 2021 2021 2020
Adani Role MDO MDO MDO MDO MDO MDO Captive
CMDPA
Contract Status Signed Signed Signed Signed LoA awaited LOA issued
signed
20
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 in Indonesia since mining as well
Our presence in Coal Trading
2007- Built credence to
business with PSUs, SEBs –
venture in Indian mining
Built strong relationship
industry after a taste of
with PSUs
success in foreign soil

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

21
 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 is
 Coal Production commenced in Feb 2013 under final completion

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

 In-house expert team of Geologists and Mining

Engineers 8.27 8.33

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

 Peak Mining capacity as per approved plan - 15 MMTPA 3.44

 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 22

Competitor Landscape

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

10000 JSPL* 10000
Jaypee Power
Adani
Turnover Networth Essel
8000 8000

Less
6000 Dilip Buildcon Aggressive 6000
Most Aggressive Competitors Competitors
Adani
4000 Sadhbhav 4000
Jaypee Power
Monte Carlo BGR Lanco Sadhbhav
2000 Sainik 2000
AMR Dilip Buildcon
VPR Sical Essel
Southwest Ambey Thriveni
0 Lanco 0
Dhansar Mahalaxmi

Single Mine with Highest Mineral Production in one

Mineral (Mn Mineral+OB
40 Ton) Year From FY11-FY17 80 80
(Mn Cum)
Mineral (LHS)
30 60
MDO for Coal/Lignite/Iron Ore
20 40

10 20

0 0
AMR

JSPL
Dhansar

Sainik
VPR

Sadhbhav

Essel

PT Darma
Southwest

Monte Carlo

Sical
Mahalaxmi

BGR

Adani

Jaypee Power
Ambey

Thriveni

Indonesian
Company

* JSPL : Turnover - Rs. 15494 Cr. ; Networth – Rs. 21675 Cr. Source: Adani Analysis, Company Reports
23
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

24
Integrated Coal Management: Our Global Footprint…
Multi-Country Multi modal Customer Account
Financing Management
Procurement Logistics

ICM

Yamunagar
Private Adani Power Overseas
PSU Suratgarh Panipat
Business Ltd business Harduaganj
Hissar
Dadri Tanda Vindyachal

Kota Unchahar Kahalgaon

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

Parli
Ramagundam Vishakhaptnam
Simhadri
Muara Satui
TanjungIndonesia
Kondapalli Gangavaram Pemancingan
Kakinada
Richard Bay
Goa
South Africa Queensland
Ennore

Mettur Tuticorin
North Chennai Australia
Ports
Locations served
Tuticorin

We are a team of 200+ with global operations run through 20+ India offices, 3 overseas offices

25
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%

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

FY15 FY16 FY17 FY18

AEL Coal Trading Volume India Steam Coal Import

Stable Operating Performance Realizations on an uptrend

Revenue EBIDTA in ₹ Crs. In $/ MT

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

26
 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%.

28
Indian Edible Oil Consumption Growth Drivers
One of the lowest per capita oil consumption (in kg) Market Dynamics

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

• Lowest Per Capita Consumption (Kg) of Edible Oil in
40 India – Huge potential to grow.
30
30 26
20
23 • 50% of consumption still catered by unorganized
17 20
20 sector- Huge potential for consumer pack business.

10 • Demand not constraint - Supply is abundant.

0
2015-16 2020-21 2024-25

Per Capita (In Kg) Demand (MMT)

29
Adani Wilmar: Strong Growth through Brand across Food segments
Edible Oil and Food Business Dominant Market Share

(as at Dec-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.

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

31
Financial Parameters

Volume MMT Revenue Rs Cr

5.00 30000 26435
CAGR : 11% 4.27 CAGR : 16%
3.92 25000 23215
4.00
3.15 17828
2.78 2.73 20000
3.00 14836 14861
15000
2.00
10000
1.00 5000
0.00 0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18

EBIDTA Networth
Rs Cr Rs Cr
1200 2000
1010
CAGR : 24% 1655
1000 CAGR : 21%
783 1500 1280
800
961 1048
600 502 525
426 1000 776
400
500
200

0 0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18

32
Key Investment Highlights
1
Indian food consumption
trend is a compelling
case for AWL’s business

7 2

Competitive advantages in sourcing,

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

6 Investment Highlights 3

Diversified product portfolio and Pan India presence and

focus on branding to capture extensive manufacturing,
incremental market share marketing, sales and
distribution platform

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

33
AEL: Mundra Solar PV - Solar Manufacturing

34
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 13 4 3
34 12 5 16 17
51 10 6
15 7 12 13 14 15
15 12 11 12
7 8 13
12 9 10 40
5 9 35
2 8 7 7 21 28 31
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

6760 12288
3745

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 35
IEO – International Energy Outlook
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), translating to 3 GW
Italy
annual market from 2018 to 2030
Europe • Resurgence of European demand in 2018 will bring 43% annual growth from 2017 levels of 6.3 GW
• France, Netherlands and Taiwan round out some of the most attractive markets by 5-year market size
Others
(~ 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 subsidy o Status o Status o Status

o INR 10 Cr Interest • Recommended • Ongoing • INR 342 Cr. Capex
subvention subsidy assessed
o Full exemption of o Expected impact o Expected impact
electricity duty • 70% duty on imported • 30-35% on panel prices o Timeline
o INR 1/unit rebate on cells from China / • Subsidy disbursement
electricity rates Malaysia expected shortly
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 36

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

Manufacturing Support Creation of Local Offtake

• Interest subvention of up to 3% for upgrading/expansion of existing
capacity
• Exemption from customs duty on import of capital goods
• Lenient allocation and banking of renewable energy for
manufacturing
• Supply of power at APPC + 5% rates
• Land at preferential rates / near ports
• Restructuring requirements for greater backward integration
• Rooftop DCR to have 40% requirement of domestic cells in
2018/19
• 20% of DCR modules to have domestic made wafers from
2019/20
• 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 37

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.

38
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
Producti In Prove AAA
3*EL In ISO
1400 1400 Compa on
Testi 3xIEC house
house IEC61 IEC61 UL17 IEC61 IEC62
CMS
n Sun
9001:
ny Capacity Qualit 730 215 03 701 716 Equip Simul
ng R&D 2015
GW y Lab ments ater

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
Hanwh
500 500 aQ 5.3 Y Y Y Y Y Y Y Y Y Y Y Y Y
410 430 Cells
300 Trina
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
0 0 0 0 Longi
3.5 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Adani SolarTata Power Solar
Vikram Solar Waaree Solar Indo Solar Jupiter Solar Canadi
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, Ammonia, 25 Years Linear
300-330 -0.42 44±2°C 5400 12 Years
Solar PID (81.2%)
Jinko IEC, UL, Salt Mist, Ammonia, 25 Years Linear
315-335 -0.40 45±2°C 5400 10 Years
Solar PID (80.7%)
Trina IEC, UL, Salt Mist, Ammonia, 25 Years Linear
320-335 -0.41 44±2°C 5400 10 Years
Solar PID (80.0%)
Canadian IEC, UL, Salt Mist, Ammonia, 25 Years Linear
315-330 -0.41 45±2°C 5400 10 Years
Solar PID (80.7%)

39
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%
5 20% 250 8.00%
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 Average of Adani Per KW DC Generation Delta Adani 72 Cells Waaree 72 Cells

40
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
Futuristic technology mix with higher binning Advantage Vertical integration capability / expansion into
than competition
Investment 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 Adani
logisticsSolar has been
management rated
team Tier-1 by BNEF for bankability
providing approval for our commitment towards quality & reliability

41
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 Vertical integration capability /
Investment
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

42
AEL: Others – Agro Infra, Bunkering, Shipping, Defence,
Commuting Infra, Cement and Water

43
Agro Infrastructure
Fruits Storage Business
• 35% fruits & vegetable lost due to lack of storage infrastructure in
India
• Brand FARM-PIK, India’s largest selling fruit brand
• Pioneer to introduce Controlled Atmosphere (CA) technology in India,
for increased fruit storage life
• Three Controlled Atmosphere (CA) storages with capacity to store
24,000MTs in the heart land of Apple orchards in HP
• A boon to farmers which has changed the apple marketing landscape
in HP
• Sourcing fruits globally for the Indian market
• Selling through a wide network of retail chain stores across the major
cities in India
BOO - Build Own Operate; DBFOT - Design, Build, Finance, Operate, Transfer; FCI – Food Corporation of India
MPWLC = Madhya Pradesh Warehousing and Logistics Corporation
Grain : Logistics, Storage and Distribution
• 7% grain lost due to lack of storage infrastructure in India
• Introduced first of its kind modern and scientific storage facilities in India , ensuring
negligible losses and minimal human touch
• Capacity with private railway sidings, transporting grains in bulk from grain-
producing states to consumption areas
• Current total storage capacity of 1 MMT is set to rise to 2 MMT by 2021
• Since 2005, built storage capacity of 850,000 tons at 13 locations in India
− Operates storage facilities of 5,50,000 tons at 7 locations under BOO for FCI for
20 Years
− Operates storage facilities of 3,00,000 tons at 6 locations under DBFOT for
MPWLC for 30 Years
• 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
PGPCL = Punjab Grain Procurement Corporation Ltd 44
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

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

Rating – BBB+/Stable

45
 Defence & Aerospace Business

PLATFORMS AND COLLABORATE WITH GROW INDIAN MSMEs FOCUS ON

1 TECHNOLOGIES
2 GLOBAL PARTNERS
3 4 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.

Advanced Materials • Composite parts supplier for SYSTEM

• Fighter Crafts (Composites) INTEGRATION - Prime
aircrafts, missiles & unmanned aerial

• Unmanned Aerial Systems vehicles.

SUB-ASSEMBLY &
• Helicopters AVIONICS & SYSTEMS SUB-SYSTEMS - Support
Unmanned Aerial Systems • High end built to specification
• Satellites (Hermes 450 and 900)
supplier of avionics systems for
• Radars & Electronic Warfare Systems fighter aircrafts, helicopters, UAV’s. COMPONENTS - Support

• Machining and Gear Manufacturing • Focus on design and development

with a well-developed supply chain DESIGN & R&D - Prime
• Carbon Composites Aerostructures
for fabrication etc..
MSME PARTNERS
• Skill Building & Training Centre
* MRO – Maintenance, Repair & Others
46
Road, Metro & Railways
Road Metro Railways

Potential & Outlook Potential & Outlook Potential & Outlook

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

• Focus on the projects across India initiated by NHAI • Focus on the projects across the country initiated by • Adani is first investor cum developer of private
& MORTH various States railway line in India
• Target selected projects under BOT, TOT, HAM model • Target selected underground Metro-rail, Mono-rail, • Focus on pan-India PPP projects
which can offer scale and complexity to create a Light-rail projects which can offer scale and • Target selected EPC projects which can offer scale
differentiated value complexity to create a differentiated value and complexity to create a differentiated value
• In-organic growth through M & A
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 47
 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 will also be
Clinker Capacity: 3.2 MTPA
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
Cement Capacity: 0.55 MTPA

be fed to Gus/BU
Mundra BT Clearanc

by Sea route
Lakhpat Mundra Udupi Dahej Raigarh
e
Dahej GU Dahej GU
Site visit Date for Filing of
Cement Capacity: 1.1 MTPA Environmen completed by
Public
Public TOR meeting Application
Hearing
t Clearance EAC, TOR Hearing completed for TOR
Completed
awaited Awaited completed

Raigarh BT Site visit by

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

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

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

GU: Grinding Unit

48
BT: Bulk Terminal
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 of water  Municipal Corporation of Greater Mumbai

scarcity due to poor river water availability, low ground water levels & high demand  Desalination projects in Tamil Nadu
 District wise Water Supply Projects in Andhra Pradesh

Source: World Resources Institute, GoI Census 49

Copper Demand Supply & Demand Drivers
Copper Demand Supply Gap (‘000 tons) Copper per capita Consumption (kg) Renewables Copper intensity is 4-12x higher
than non-renewable
14
14 10 11
12
10 5.4
8
6 3.3 2.7
4 0.6
2
0

Copper intensity of EV vehicle is 4- Copper demand from automotive sector is State of art Copper plant at Mundra
6x of Internal Combustion Engine expected grow @ 14% Particulars Plant 1 Plant 2
(ICE). Avg EV would contain 90-150 Copper Smelter 450,000 450,000
kgs of copper vs 15 Kgs for ICE Copper Scrap Melting Facility 50,000 50,000
Copper Refinery 500,000 500,000
Copper Rod Plant 250,000 250,000
Precious Metal Plant
- Gold 25 25
- Silver 250 250
Sulphuric Acid Plant 1,500,000 1,500,000
Phosphoric Acid Plant 250,000 250,000
Aluminum Fluoride Plant 15,000 15,000
Project Status
• Environmental Impact Assessment Study (EIA) & public hearing
completed
• Environment Clearance under approval
• Bankable feasibility study is completed
• Plant construction work ordering - discussions underway
• Estimated project construction time – 30 months post financial
closure
• Capex ~Rs 7200 crs (excl land cost) for 0.5 MMT of plant 1
Low per capita Power & Copper Consumption + high population growth + Renewables & EV Intensity
Source: Wood Mackenzie, The Market Oracle, Teck Resources
50
BEV – Battery Electric Vehicle; PHEV – Plug-in Hybrid Electric Vehicle; SXEW - Solvent Extraction and Electro Winning
AEL: Carmichael Mine, Australia

51
Carmichael Coal Mine - Overview

Location  Galilee Basin, Queensland, Australia

 11 BT 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 capacity

of 10 mtpa
 Deferring certain on site and off site
Phase I
infrastructure
 Ensures sustainability and positive cash flows
on the 10 mtpa

 1st Coal on rail by Dec 2020

Phase II  Decision to ramp up to 15/ 20 mtpa in year 2
and 3 of operations

52
Carmichael Coal Mine: Capital Cost & Status of Major Approvals
Received required approvals
Lower initial capital cost
Initial Further Judgement on
Matter Counterparty
Judgement Appeal Further Appeal
Particulars A$Mn
Grant of Mine Land Services of ✔
Environmental Authority on Coast and Country In favour of No n/a
Project cost - Already Spent 1,180 February 2, 2016 Inc Adani
Land Services of ✔
Land Court Hearing Coast and Country In favour of No n/a
Project cost to be incurred 700 Inc Adani
Australian
Grant of Mine EPBC ✔ ✔
Conservation
Approval on October 14, In favour of Yes In favour of
Foundation
2015 Adani Adani
Incorporated (ACF)
Competitive operating costs with favourable strip ratio of ~4
Determination of National ✔ ✔
Native Title Tribunal dated Adrian Burragubba In favour of Yes In favour of
April 8, 2015 Adani Adani
Breakeven Calculation A$/t
Adrian Burragubba,
Annual tonnage (MMT) 10 Linda Bobongie, ✔ ✔
Grant of Mining Lease on
Lester Barnard, Delia In favour of Yes In favour of
April 3, 2016
Mining Cost 27 Kemppi and Lyndell Adani Adani
Turbane
Rail Cost 20
Grant of Environmental
Whitsunday ✔
Authority for Port
Port Cost 7 Residents Against In favour of n/a n/a
Development dated
Dumping Ltd Adani
December 7, 2015
Total FOB Cost 54
Adrian Burragubba,
Hearing in the
Adjd Current Price NEWC 5500 68* Application to register the Linda Bobongie,
Federal Court
ILUA on April 27, 2016 by Lester Barnard, Delia n/a n/a
estimated to be
Adani Kemppi and Lyndell
Margin (A$/t) 14 held
Turbane

53
 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
production
• Growing Target markets
SE Asia /
SE Asia / Other India -
• Geographically favourable for target markets Other
13% India - Adani
18% Adani
Power
China Power China
36% 36%
• Mining and logistics solutions offer supply confidence to customers 25%
India -
20%
India -
Other Other
26% 26%
• Product strategy designed to evolve in line with target markets

• Cost competitive – 1st Quartile cost delivered in to East India

54
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

55
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 with • Business growth in tandem with

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

56
 One vision,
One team

Growth
With
Goodness

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.

57