Adani Group An update Brisbane Mining Club
Today India s Growth Story and Energy Demand Adani Group an Overview Adani Group in Australia 2
India s Growth Story and Energy Demand 3
India : Macroeconomic Scenario forecast India GDP Evolution in comparison with World Economy 20,000 18,000 16,000 Source : Wikipedia / IMF data GDP (USD Billion) 14,000 12,000 10,000 8,000 6,000 3 fold increase from current level Set to become No. 4 4,000 2,000 - USA China Japan India 1980 1990 2000 2010 2020 GDP (USD Trillion) 0.182 0.326 0.480 1.631 5.6* GDP Growth Rate (CAGR) Germany 12 1 2 Brazil Russia UK France India Italy Canada Spain Australia 1980 2,788 202 1,071 826 163-542 691 182 461 269 224 165 64 227 1990 5,801 390 3,058 1,547 508-1,018 1,249 326 1,136 583 521 328 270 288 2000 9,951 1,198 4,667 1,906 642 260 1,481 1,333 480 1,101 725 582 401 533 672 2010 14,658 5,878 5,459 3,316 2,090 1,465 2,247 2,583 1,538 2,055 1,574 1,410 1,236 1,007 1,039 2016 (E) 18,808 11,220 6,540 3,928 3,303 3,237 3,220 3,211 2,848 2,489 2,063 1,703 1,697 1,586 1,495 1981-1990 6.0% 1991-2000 3.9% 2001-2010 12.8% 2011-2020 13.8% Rank 12 12 13 9 4 9 10 13 South Korea Mexico 4
India : Energy Scenario Electricity Generation (Billion KWH) Source : EIA International Energy Statistics 2010 4500 4000 3500 4,112 3,904 3000 2500 Power Generation Rank : 5 2000 1500 1000 500 1,052 984 904 591 0 USA China Japan Russia India Canada Electricity Consumption Per Capita (KWH) Source : 2012 Key World Energy Statistics - IEA 16000 15145 14000 13361 12000 10000 8000 6000 10063 8399 One of the lowest in terms of per capita consumption of power 4000 2000 0 2958 2892 2384 644 Canada USA Australia Japan China World Brazil India 5
India : Energy Scenario Likely to experience a steep rise in Power demand in the coming years. Peak Power Demand (GW) 800 700 600 500 400 300 200 100 0 6% GDP growth 8% GDP growth 9% GDP growth 2001-02 2006-07 2011-12 2016-17 2021-22 2026-27 2031-32 Source: IMaCS Research / 17 th Electric Power Survey of India Report / The Conference Board : Global Economic Outlook 2012 6
India : Energy Scenario Total Power Generation Capacity [191 GW] Break up of Thermal Power Generation Capacity Nuclear 2.5% Hydro 20% RES** 12% Thermal 65.5% Gas 15% Oil 1% Coal 84% Fuel MW % of Total Thermal 124,731 65.44 Coal 105,437 55.32 Gas 18,094 9.50 Oil 1,200 0.63 Hydro 38,848 20.38 Nuclear 4,780 2.50 RES** 22,233 11.67 Total 190,593 100 ** RES = Renewable Energy Sources Source : Power Ministry (India) as on 29 th Feb 2012 7
India : Coal Scenario Historical Demand-Supply of Coal in India India s Need for Imported Coal : Imports to Increase to Bridge Demand-Supply Gap MMT MMT 1000 950 1000 900 800 700 600 500 400 550 490 598 656 515 524 696 559 773 580 740 900 800 700 600 500 400 60 44 45 132 83 49 50 49 50 137 56 51 193 57 53 210 68 57 300 200 100 59 73 92 137 143 210 300 200 100 401 416 424 452 470 615 0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2017 0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2017 Demand Production Import CIL SCCL Others Import/Deficit Source : Ministry of Coal, India; Planning Commission of India Source : CIL; SCCL; Ministry of Coal; India; Planning Commission of India Coal in FY2017 : Demand ~ 950MMT; Available ~ 740 MMT; Import Requirement ~ 210 MMT Need for supply diversity and stability No play to create excess supply 8
Australia as Potential Source for Imported Coal Large reserves of high quality and high energy content Possible to achieve economies of scale Huge potential for exports as supply could be potentially much higher than internal demand Sufficient port capacity available to cater to the export market Politically Stable; Transparent Government Policies Continuous improvements in mining technology, occupational health and safety and environmental performance ensure efficiency and reliability Coal industry supported by a strong equipment and services sector with expertise in design, construction and operation of mines, transport systems and loading facilities 9
Adani Group An Overview 10
Adani Group Major Milestones Mine Port Power Foundation of Adani Group Mundra Port Operational Parsa Kente, India Mundra Port IPO - Oversubscribed by 116 times Chendipada Coal Block, India Carmichael Coal Mine tenement, Australia 1st supercritical unit of 660 MW commissioned at Mundra 1988 1994 1998 2006 2007 2009 2010 2011 Adani s 1 st IPO; Oversubscribed 25 times Indonesia (Bunyu) Mining Operation Parsa & Machhakata, India Preferred Proponent for Dudgeon Point, Australia Abbot Point, Australia 1st unit of 330 MW Operationalized at Mundra Power IPO; Oversubscribed 26 times 11
Adani Group Thinking Big Doing Better Largest private Port in India Largest Coal Import Terminal in the world 1 st Company in India to own Private Railway & operate double decker container rakes Largest Private sector Power Generator in India 1 st private sector company in India to commission 1000 km high voltage direct current (HVDC) power transmission system Largest importer of Coal in India with consistent market share of over 50% Largest Coal mine developer & operator in India with peak capacity of over 110 MTPA Largest Edible Oil Company in India in terms of market share 12
Adani Group Thinking Big Doing Better 3 listed Companies on Indian Stock Exchanges: Adani Enterprises Limited, Adani Ports and SEZ Limited & Adani Power Limited Annual Turnover of over USD 8 Billion Projected investment of USD 25 Billion in next 5 years Projected Manpower of 20,000 in next 5 years Learning and Development through Adani Management Development Centre, Adani Institute of Infrastructure Management & Gujarat Adani Institute of Medical Sciences Quality Education, Healthcare, Livelihood Development and Rural Infrastructure Development through Adani Foundation 13
Integrated Business Model : from Pit to Plug
Vision for future Coal Mining & Trading Coal Mining & 2020 : 200 MMT Coal Trading 2012: 38 MMT Port Cargo 2020 : 200 MMT Integrated Business Power Generation 2020 : 20000 MW 2012: 78 MMT Ports & Logistics Model Power Generation & Transmission 2012: 4660 MW 15
Adani Group in Australia 16
Adani Group in Australia Carmichael Adani Coal Group Mine in Australia 10 Billion Tonnes thermal coal resource Capacity to produce 60Mtpa Construction start 2013; First coal 2015 Rail Greenfield line from Carmichael Mine to Moranbah (190 km) Construction start 2013; Commissioning by 2015 Ports Abbot Point Existing operational Terminal at Abbot Point is 50 MTPA Expanding Abbot Point Terminal to 120 MTPA (35 MTPA capacity addition by 2016) Dudgeon AUSTRALIAN PointRESOURCES AND MAJOR EXPORT PORTS Oil and Gas Basin Coal Export Ports Uranium Deposit One of the two preferred proponents Operating Uranium for Black Coal Basin Coal Production developing Dudgeon Point (180 Mines MTPA between Lignite Basins both proponents) 2010 Carmichael Coal Mine Acquisition of Coal Tenement Canberra 2011 Abbot Point Coal Terminal Acquisition 2009 Dudgeon Point Preferred Proponent 17
Carmichael Mine Details Expected Production Investment Coal seams Mining Technology 60 MTPA Open Cut ramp up in 7 Years Mine $4B+ Including supporting Infrastructure Eight coal seams; AB1, AB2, AB3, D1, D2, D3, E and F Gentle slope 2 to 6 Combined thickness of 25 to 35 Mts 5:1 Strip Ratio Project will have 110 CuM Draglines, 63 CuM Shovels / 42 CuM HEX and 360 T trucks Coal would be washed / dry separated 18
Carmichael Mine Exploration Progress 2010 2011 2012 19
Carmichael Mine Project Exploration Completed in Northern Open Cut Area Mine Plan Completed for Northern Open Cut Area Hydrological Model Completed Geotech Model Completed Coal Quality Model Completed Washability Model Completed Environmental Impact Statement (EIS) Mine and Rail Submission expected by November 12 Bankable Feasibility Study Commenced in June 12; Report expected by March 13 Preliminary Engineering Commenced Preliminary Engineering for Infrastructure, Offsite and Onsite. Expected to be completed by February 13 Land Purchased Moray Downs property for Mine and Infrastructure Mining Equipment Slots booked for Mining Excavators & Trucks (with tyres) Ancillary equipment will be ordered by November 12 Utilities Water and Power sources identified 20
Adani Group in Australia Rail 100 MTPA Railway 190 Kms New Heavy Haul Railway State of the art Signalling system for efficient train operation Rail connectivity: support Abbot Point and Dudgeon Point Ports 21
Adani Group in Australia Rail Route Selection Completed and corridor has been defined in May 12 LiDAR Survey Completed Geotechnical Investigation Completed along the corridor, leading to detailed Hydrology modelling Survey Detailed ground survey including CHMP, Vegetation, Cadastral, etc. completed Train Modelling Completed to confirm cycle time, tonnage, rolling stock requirement, operating cost, etc. Basic Engineering (+/- 15% estimates) Detailed Design Commenced Commenced in April 12. Will be completed by December 12 Laydown areas All laydown areas identified including camp locations, construction depots, maintenance yard, etc. Rail Accreditation Received accreditation for Rail Infrastructure Manager and Rail Operational Manager effective 31 st July 12 Land CHMP Agreement signed with all four Native Title groups Quarry Permit to search granted by DERM on 31 locations Site investigations in progress 22
Adani Group in Australia Port Abbot Point T1: Status Operational Capacity 50 MTPA Completely contracted Abbot Point Abbot Point T0: Status - Proposed Capacity up to 70 MT in 2 stages Adani rail line Dudgeon Point Dudgeon Point: Status Proposed Capacity 90 MT in 3 stages Galilee basin Bowen basin Surat basin Source: Map - Presentation at Coaltrans Australia Conference by Dept. of Transport and Main Roads, Queensland Government, Aug 2012; Adani analysis 23
Adani Group in Australia Abbot Point T0 Public Environment Report (PER) for Dredging Environmental Impact Statement (EIS) Cumulative Impact Assessment Report Submitted in September 12 Approval expected by April 13 Submission expected by end of October 12 Approval expected by May 13 Jointly prepared by the Abbot Point terminal developers Has been released for Public Comment in October 12 Offshore Geotech works Completed in September 12 Onshore Geotech works Expected by February 13 CHMP and ILUA Discussions/Negotiations commenced in August 12 Agreement expected by December 12 Basic Engineering (+/- 15 % estimates) Commenced in May 12 Completion expected by December 12 Detailed Engineering Will commence in November 12 Major Contract and Procurement Packages Will be awarded by Q2 2013 24
Organisational Strategy Leverage our scale & ambition to attract future industry leaders Build a high performance organisational culture to create a new industry benchmark Pursue innovative solutions unshackled from past practises Under pinned by sound management practises and strategic risk controls 25
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 ) and Mundra Port and Special Economic Zone Limited ( MPSEZ ) & Adani Power Limited ( APL ), their future outlook and growth prospects, and future developments in their businesses and their 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 their business, their competitive environment, their ability to implement their 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. 26
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