Globalizing the Cost of Capital and Capital Budgeting at AES

Harvard Business School Case 9-204-109

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Table A Risk Score Calculation for Lal Pir Project

Grade for Risk Scores

Categories of Risk Weight Lal Pir (grade x weight)
Operational / Technical 3.50% 1 0.035
Counterparty Credit / Performance 7.00% 1 0.070
Regulatory 10.50% 2 0.210
Construction 14.50% 0 0.000
Commodity 18.00% 1 0.180
Currency 21.50% 2 0.430
Contractual Enforcement / Legal 25.00% 2 0.500
Sum of individual scores = business specific risk score 1.425

Source: Company document (actual assessments disguised).

Exhibit 2 AES Consolidated Balance Sheet

Amounts in millions; as of December 31, 2002 2001 2000 1999 1998

ASSETS
Cash & Equivalents 780 802 950 669 491
Other Short-Term Investments 211 215 1297 164 35
Accounts Receivable 1264 1137 1566 936 383
Inventory 384 468 569 307 119
Prepayments & Advances 218 215 1193 327 155
Other Current Assets 1492 1855 209 184 71
Total Current Assets 4349 4692 5784 2587 1254

Long-Term Investments 194 3031 3122 1575 1933

Property Plant & Equipment 23050 21127 21874 14210 6029
Accum Depr. & Amort. -4204 -3015 -2632 -763 -525
Property Plant & Equipment, Net 18846 18112 19242 13447 5504
Goodwill/Intangibles 1403 2433 2248 1904 1490
Other Long-Term Assets 8984 8544 2642 1367 600
Total Assets 33776 36812 33038 20880 10781

LIABILITIES & SHAREHOLDERS' EQUITY

Accounts Payable 1139 727 743 381 215
Short-Term Debt - - - - -
Curr. LT Debt and CLOs 3341 2449 2462 1216 1413
Other Current Liabilities 2031 1752 1834 973 348
Total Current Liabilities 6511 4928 5039 2570 1976

Long-Term Debt 17684 17406 17382 12136 5791

Total Long-Term Debt 17684 17406 17382 12136 5791
Deferred Taxes 981 627 1863 1787 268
Other Long-Term Liabilities 8941 8312 3212 1750 952
Total Liabilities 34117 31273 27496 18243 8987

Stockholder’s Equity
Common Stock 6 5 5 4 2
Additional Paid in Capital 5312 5225 5172 2615 1243
Retained Earnings -700 2809 2551 1120 892
Treasury Stock - - -507 - -
Other Equity -4959 -2500 -1679 -1102 -343
Total Shareholders' Equity -341 5539 5542 2637 1794
Total Liabilities + Shareholders' Equity 33776 36812 33038 20880 10781

Shares Outstanding 558 533 509 414 361

Source: “AES Annual Balance Sheet”, December 2003, available from OneSource Information Services, <http://www.onesource.com>
Exhibit 1 AES Consolidated Income Statement

Amounts in millions except per share figures 2002 2001 2000

Revenues
Regulated $ 4,317 $ 3,255 $ 2,661
Non-regulated 4,315 4,390 3,545
Total revenues 8,632 7,645 6,206
Cost of sales
Regulated -3,627 -2,416 -2,093
Non-regulated -3,086 -3,052 -2,210
Total cost of sales -6,713 -5,468 -4,303
SG&A expenses -112 -120 -82
Severance and transaction costs - -131 -79
Interest expense -2,031 -1,575 -1,262
Interest income 312 189 201
Other income 219 116 51
Other expense -87 -65 -52
(Loss) gain on sale of investments and asset impairment
expense -1,600 18 143
Goodwill impairment expense -612 - -
Foreign currency transaction loss -456 -30 -4
Equity in pre-tax (loss) earnings of affiliates -203 176 475
(Loss) income before income taxes and minority interest -2,651 755 1,294
Income tax (benefit) expense -27 206 368
Minority interest (income expense) -34 103 120
(Loss) income from continuing operations -2,590 446 806
Loss from operations of dicontinued businesses (net of
income tax benefit of $90, $10 and $5, respectively) -573 -173 -11
(loss) income before cumulative effect of accounting change -3,163 273 795
Cumulative effect of change in accounting principle
(net of income tax benefit of $72) -346 - -
Net (loss) income ($3,509) $273 $795

BASIC (LOSS) EARNINGS PER SHARE:

(Loss) income from continuing operations ($4.81) $0.84 $1.67
Discontinued operations ($1.05) ($0.32) ($0.01)
Cumulative effect of accounting change ($0.65) $- $-
Basic (loss) earnings per share ($6.51) $0.52 $1.66

Source: AES Corporation, 2002 Annual Report (Arlington: AES Corporation, 2003).
 Exhibit 7a AES Project Data

Line of
S. No. Business / Project Country Business

Dominican
1 Andres Republic CG

2 Caracoles Argentina CS
United
3 Drax Kingdom CS
4 Eletropaulo Brazil LU
5 Gener Chile CG

6 Haripur Bangladesh CG
7 Kelvin South Africa CG
8 Lal Pir Pakistan CG
Dominican
9 Los Mina Republic CG
10 OPGC India CG

11 Ottana Italy CS
12 Red Oak USA CG
13 Rivnoblenergo Ukraine GD
14 Telasi Georgia GD
15 Uruguaiana Brazil CG

Source:Company document. Project descriptions taken from http://www.aes.com/businesses/default.asp.

 Debt to
Project Description Tax Rate Cap.

300 MW gas fired combined cycle plant currently under construction 30 km east of
Santo Domingo 25.0% 35.1%

123 MW hydroelectric power plant located on the San Juan river in western Argentina 35.0% 40.8%
Largest coal-fired power station in western Europe. It can produce enough electricity -
about 4000 MW- to meet the needs of approximately four million people 0.0% 29.5%
Distribution company that serves a population of 14 million in Sao Paulo 34.0% 30.0%
277 MW fossil fuel plant located in Tocopilla, 1500 km north of Santiago 17.0% 35.2%
360 MW gas turbine facility located 25 kilometers southeast of Dhaka, capital of
Bangladesh 0.0% 33.3%
600 MW coal fired power plant 25.0% 32.9%
337 MW coal fired power plant 23.0% 35.1%

210 MW Oil-fired facility supplying the capital city of Santo Domingo 25.0% 28.7%
Joint Venture with the Government of Orissa. Two 210 MW P.C. coal-fired units 7.9% 30.4%
Oil fired 140 MW cogeneration facility - under contracts of up to 10 years, electricity,
steam, compressed air, dematerialized water and nitrogen to three chemical facilities
adjacent to the plant 35.0% 42.5%
832 MW natural gas-fired plant 37.5% 39.5%
Distribution Company serving 380,000 customers 30.0% 36.5%
Distribution Company serving Tbilisi, the capital of Georgia. 20.0% 26.1%
600 MW gas-fired combined cycle power plant 34.0% 32.2%

n from http://www.aes.com/businesses/default.asp.
 Risk Scores

Contract enf./Legal
Counterparty
Construction

Operational/

Commodity
Regulatory
Technical

Currency
EBIT Default Sovereign
Coverage Spread Spread

3.0x 3.57% 8.93% 3 3 3 3 3 3 3

3.0x 3.57% 16.25% 3 2 2 2 - 2 1

3.0x 3.57% 0.00% - 2 2 - 2 2 3

3.5x 2.89% 8.93% - 1 3 3 1 3 2
2.5x 4.34% 1.73% - - 1 1 1 - 2

2.5x 4.34% 5.23% 2 - - - 1 1 1

2.5x 4.34% 3.14% 1 - 1 2 2 1 -
3.0x 3.57% 9.90% - 1 2 2 1 2 1

4.0x 1.85% 8.93% - 3 3 3 3 3 3

3.0x 3.57% 3.60% - 1 3 2 3 2 -

2.5x 4.34% 0.14% - - - 1 3 - -

3.0x 3.57% 0.00% - 2 - - 3 - 2
2.5x 3.57% 9.98% - - 1 2 1 - -
4.0x 1.85% 9.98% - 2 3 3 3 3 3
4.0x 1.85% 8.93% - - 3 3 2 3 2
Exhibit 7b AES Selected Financial Data

Select Financial Information

10 Year US Treasury Bond 4.50%
US Risk Premium 7.00%
Un-levered Equity Betas by Line of Business
Contract Generation 0.25
Large Utility 0.25
Growth Distribution 0.25
Competitive Supply 0.50

Source: Company document.

Country Default Spread and Risk Premiums(January2019)

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
 Lalpir Red Oak Andres
Cost of Equity
US Risk Free Spread 4.50% 4.50% 4.50%
Unlevered Equity Beta of Lalpir (Contract Generation) 25.00% 25.00% 25.00%
Debt/Capital 35.10% 39.50% 35.1%
EV(=1-Debt/Cap) 64.90% 60.50% 64.90%
Levered Beta (=Unlev Beta/(E/V)) 38.52% 41.32% 38.52%

Cost of Equity 7.20% 7.39% 7.20%

Sovereign Spread 9.90% 0.00% 8.93%

Cost of Equity 17.10% 7.39% 16.13%

Cost of Debt
US Risk free Spread 4.50% 4.50% 4.50%
Default Spread 3.57% 3.57% 3.57%
Cost of Debt 8.07% 8.07% 8.07%

Adjusted Cost of Debt 17.97% 8.07% 17.00%

[Cost of Debt (Cost of debt+ Sovereign Spread)]

Tax Rates 23.0% 37.5% 25.0%

Idiosyncratic Risk 7.1% 3.2% 15.0%

Adjusted Cost of Capital 23.08% 9.66% 29.94%

[E/V*COE+D/V*COD(1-T)+Irisk]
Caracoles Drax Eletropaulo Gener Haripur Kelvin Los Mina OPGC Ottana

4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%

50.00% 50.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 50.00%
40.8% 29.5% 30.0% 35.2% 33.3% 32.9% 28.7% 30.4% 42.5%
59.20% 70.50% 70.00% 64.80% 66.70% 67.10% 71.30% 69.60% 57.50%
84.46% 70.92% 35.71% 38.58% 37.48% 37.26% 35.06% 35.92% 86.96%

10.41% 9.46% 7.00% 7.20% 7.12% 7.11% 6.95% 7.01% 10.59%

16.25% 0.00% 8.93% 1.73% 5.23% 3.14% 8.93% 3.60% 0.14%

26.66% 9.46% 15.93% 8.93% 12.35% 10.25% 15.88% 10.61% 10.73%

4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%

3.57% 3.57% 2.89% 4.34% 4.34% 4.34% 1.85% 3.57% 4.34%
8.07% 8.07% 7.39% 8.84% 8.84% 8.84% 6.35% 8.07% 8.84%

24.32% 8.07% 16.32% 10.57% 14.07% 11.98% 15.28% 11.67% 8.98%

35.0% 0.0% 34.0% 17.0% 0.0% 25.0% 25.0% 7.9% 35.0%

9.1% 7.3% 10.9% 3.8% 4.0% 5.4% 12.8% 7.5% 2.1%

31.36% 16.35% 25.26% 12.63% 16.88% 15.18% 27.44% 18.11% 10.77%

Rivnoblenergo Telasi Uruguaiana

4.50% 4.50% 4.50%

25.00% 25.00% 25.00%
36.5% 26.1% 32.2%
63.50% 73.90% 67.80%
39.37% 33.83% 36.87%

7.26% 6.87% 7.08%

9.98% 9.98% 8.93%

17.24% 16.85% 16.01%

4.50% 4.50% 4.50%

3.57% 1.85% 1.85%
8.07% 6.35% 6.35%

18.05% 16.33% 15.28%

30.0% 20.0% 34.0%

3.0% 12.7% 11.1%

18.58% 28.51% 25.15%

Calculation of the Idiosyncratic Risk Score

Risk Category Weight Andres

Operational 3.50% 3
Counterparty 7% 3
Regulatory 10.50% 3
Construction 14.50% 3
Commodity 18.00% 3
Currency 21.50% 3
Legal 25% 3
3.00
Risk Score 3.00
15.00%
Risk Adder 15%

Dominican Republic CG Andres

Argentina CS Caracoles
United Kingdom CS Drax
Brazil LU Eltrepaulo
Chile CG Gener
Bangladesh CG Haripur
South Africa CG Kelvin
Pakistan CG Lalpir
Dominican Republic CG Los Mina
India CG OPGC
Italy CS Ottana
USA CG RedOak
Ukraine GD Rivnoblenergo
Georgia GD Telasi
Brazil CG Uruguiana
Note:
Contract Generation(CG)
Competitive Supply(CS)
Large Utilities(LU)
Growth Distribution(GD)
Caracoles Drax Eltrepaulo Gener Haripur Kelvin Lalpir Los Mina OPGC

2 2 1 0 0 0 1 3 1
0 2 1 1 1 2 1 3 3
2 2 3 1 0 1 2 3 3
3 0 0 0 2 1 0 0 0
1 3 2 2 1 0 1 3 0
2 0 3 1 0 2 2 3 2
2 2 3 0 1 1 2 3 2
1.825 1.46 2.175 0.75 0.79 1.07 1.425 2.565 1.49

9.13% 7.30% 10.88% 3.75% 3.95% 5.35% 7.13% 12.83% 7.45%

Ottana RedOak oblenergo TelasiUruguiana

0 2 0 2 0
3 3 1 3 2
0 0 1 3 3
0 0 0 0 0
0 2 0 3 2
1 0 2 3 3
0 0 0 3 3
0.425 0.64 0.605 2.53 2.21

2.13% 3.20% 3.03% 12.65% 11.05%

Exhibit 9b EBIT Coverage Ratios and Default Spreads

EBIT
Credit Coverage Default
Rating Ratio Spread
Aaa 21.1x 0.20%
Aa1 15.1x 0.30%
Aa2 10.9x 0.40%
Aa3 8.1x 0.60%
A1 6.3x 0.70%
A2 5.2x 0.90%
A3 4.6x 1.20%
Baa1 4.2x 1.50%
Baa2 3.9x 1.90%
Baa3 3.6x 2.30%
Ba1 3.2x 2.90%
Ba2 2.6x 3.60%
Ba3 1.9x 4.30%
B1 1.0x 5.20%
B2 0.8x 6.20%
B3 0.6x 7.40%
Caa1 0.4x 8.60%
Caa2 0.1x 10.00%
Caa3 0.1x 11.40%

Source: Company documents.

NPV Calculations for Projects
Exhibit 12 Project Cash Flows (in US$ millions)

Andres

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Andres Discount rate ₹ 214.40

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 107.20

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Caracoles

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Caracoles Discount rate ₹ 204.75

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 102.38

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Drax

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Drax Discount Rate ₹ 380.04

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 190.02

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Eltrepaulo

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Eltrepaulo Discount Rate ₹ 253.50

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 126.75

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Gener

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Gener Discount Rate ₹ 471.60

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 235.80

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Haripur

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Haripur Discount Rate ₹ 369.65

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 184.83

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Kelvin

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Kelvin Discount Rate ₹ 405.26

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 202.63

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Lalpir

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Lal pir Discount rate @ 23% ₹ 276.63

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

Lal Pir Valuation at Half Cash Flows ₹ 138.31

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Los Mina

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Losa Mina Discount Rate ₹ 233.73

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 116.86

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

OPGC

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

OPGC Discount Rate ₹ 347.07

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 173.53

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Ottana

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Ottana Discount Rate ₹ 531.91

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 265.95

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Red Oak

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Red Oak Discount Rate ₹ 574.34

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 287.17

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Rivnoblenergo

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Rivnoblenergo Discount Rate ₹ 338.96

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 169.48

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Telasi

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Telasi Discount Rate ₹ 225.06

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 112.53

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Exhibit 12 Project Cash Flows (in US$ millions)

Uruguiana

Income 2004 2005 2006 2007 2008 2009

Revenue 312.5 313.6 314.7 315.8 316.9 318.0
EBITDA 100.0 100.4 100.7 101.1 101.4 101.8
Depreciation (30.6) (31.3) (31.9) (32.5) (33.1) (33.8)
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Net Profit 16.4 17.2 18.0 19.0 20.0 21.2

Cash Flow
Operating Profit 69.4 69.1 68.8 68.5 68.3 68.0
Addback Depreciation 30.6 31.3 31.9 32.5 33.1 33.8
Maintenance CapEx (12.5) (12.5) (12.6) (12.6) (12.7) (12.7)
Pre-Tax, Pre-Finance Cash Flow 87.5 87.8 88.1 88.4 88.7 89.0
Interest (44.1) (42.7) (41.1) (39.4) (37.5) (35.4)
Principal (14.2) (15.5) (16.9) (18.4) (20.1) (22.0)
New Debt 0.0 0.0 0.0 0.0 0.0 0.0
Taxes (8.8) (9.2) (9.7) (10.2) (10.8) (11.4)
Levered Equity Cash Flow 20.3 20.4 20.4 20.4 20.3 20.2
Lev Equity Cash Flow with TV 20.3 20.4 20.4 20.4 20.3 20.2
Unlevered Cash Flow 63.2 63.6 64.0 64.4 64.8 65.2
Unlevered Cash Flow with TV 63.2 63.6 64.0 64.4 64.8 65.2

Uruguiana Discount Rate ₹ 254.52

Half Cash Flow 31.61 31.81 32.01 32.22 32.42 32.62

₹ 127.26

Capitalization
Initial PP&E 612.5 625.0 637.6 650.3 662.9 675.7
Goodwill 22.4 22.4 22.4 22.4 22.4 22.4
Accum Depreciation (30.6) (61.9) (93.8) (126.3) (159.4) (193.2)
Total Assets 604.3 585.6 566.3 546.4 525.9 504.9
Debt 416.5 401.0 384.1 365.7 345.6 323.6
Equity 187.8 184.6 182.1 180.7 180.3 181.3
Total Capital 604.3 585.6 566.3 546.4 525.9 504.9

note: values disguised

Source: Company document.
 2010 2011 2012 2013 2014 2015 2016 2017 2018
319.1 320.2 321.4 322.5 323.6 324.7 325.9 327.0 328.2
102.1 102.5 102.8 103.2 103.6 103.9 104.3 104.6 105.0
(34.4) (35.1) (35.7) (36.3) (37.0) (37.6) (38.3) (39.0) (39.6)
67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
22.4 23.9 25.4 27.2 29.1 31.3 33.6 36.2 39.1

67.7 67.4 67.1 66.8 66.6 66.3 66.0 65.7 65.4

34.4 35.1 35.7 36.3 37.0 37.6 38.3 39.0 39.6
(12.8) (12.8) (12.9) (12.9) (12.9) (13.0) (13.0) (13.1) (13.1)
89.4 89.7 90.0 90.3 90.6 90.9 91.2 91.6 91.9
(33.2) (30.7) (28.0) (25.0) (21.8) (18.2) (14.3) (9.9) (5.2)
(24.1) (26.4) (29.0) (31.8) (34.9) (38.3) (42.1) (46.2) (50.8)
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(12.1) (12.9) (13.7) (14.6) (15.7) (16.8) (18.1) (19.5) (21.1)
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
20.0 19.7 19.3 18.9 18.3 17.6 16.8 15.9 14.8
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0
65.7 66.1 66.5 66.9 67.3 67.7 68.2 68.6 69.0

32.83 33.04 33.24 33.45 33.66 33.87 34.08 34.29 34.50

688.4 701.2 714.1 727.0 739.9 752.9 766.0 779.0 792.2

22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
(227.6) (262.7) (298.4) (334.7) (371.7) (409.4) (447.7) (486.6) (526.2)
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
299.4 273.0 244.1 212.3 177.4 139.1 97.0 50.8 (0.0)
183.8 187.9 194.1 202.4 213.2 226.8 243.6 264.0 288.3
483.2 461.0 438.1 414.7 390.6 365.9 340.7 314.8 288.3
 2019 2020 2021 2022 2023
329.3 330.5 331.6 332.8 333.9
105.4 105.7 106.1 106.5 106.9
(40.3) (40.9) (41.6) (42.3) (42.9)
65.1 64.8 64.5 64.2 63.9
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
42.3 42.1 41.9 41.8 41.6

65.1 64.8 64.5 64.2 63.9

40.3 40.9 41.6 42.3 42.9
(13.2) (13.2) (13.3) (13.3) (13.4)
92.2 92.5 92.9 93.2 93.5
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
0.0 0.0 0.0 0.0 0.0
(22.8) (22.7) (22.6) (22.5) (22.4)
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1
69.4 69.8 70.3 70.7 71.1

34.71 34.92 35.13 35.35 35.56

805.3 818.6 831.8 845.1 858.5

22.4 22.4 22.4 22.4 22.4
(566.5) (607.4) (649.0) (691.3) (734.2)
261.2 233.5 205.2 176.3 146.7
(0.0) (0.0) (0.0) (0.0) (0.0)
261.2 233.5 205.2 176.3 146.7
261.2 233.5 205.2 176.3 146.7
Business Segments Range of Cost of Capital Range of Valuations
Contract Generation 9.6% - 28.4% 233 - 574
Competitive Power Supply 10.7% - 31.3% 204 - 531
Large Utilities 25% 253
Growth Distribution 18.5% - 28.5% 225 - 339