Investor Presentation Aug 2011 Investor Presentation Disclaimer - - PowerPoint PPT Presentation

Aug 2011

Investor Presentation

Investor Presentation

Disclaimer

• This presentation is for information purpose only and does not constitute an offer, solicitation or advertisement

with respect to the purchase or sale of any security of Punj Lloyd (the “Company”) and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

• This presentation is not a complete description of the Company. Certain statements in the presentation and, if

applicable, the subsequent question and answer session and discussions concerning the Company‟s future growth prospects contain words or phrases that are forward looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

• All information contained in this presentation has been prepared solely by the Company. No information

contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or

• therwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed,

shared, or disseminated in any other manner.

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Investor Presentation

Content

Page No Group & Company Overview 4 – 7 Management & Organisational Structure 8 – 9 Global Presence & Major Breakthroughs 10 – 12 Major Projects & Service Offerings 13 – 16 Marquee Client Base 17 Financial Position & Market Summary 18 – 21 Industry Overview 22 – 31 Awards & Accolades 32 – 33 Business Strategy & Future Outlook 34

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Investor Presentation

Punj Lloyd – The Group

• Energy

– Oil & Gas – Offshore Platform, Onshore Field Development, Pipelines, Tankage and Terminals, Process Plants, – Power : Thermal, Nuclear – Renewables : Non–conventional Power, Bio Fuels, Green Buildings & Infrastructure and Water

• Infrastructure

– Transport :Subways & Metro Systems, Airports, Highways & Expressways, Tunnels & Caverns, Seaports & Terminals, Bridges, Flyovers & Interchanges – Utilities : Reservoirs & Treatment Plants – Building : Hospitality & Leisure, Commercial, Industrial, Institutional, Residential Complexes, Healthcare & Townships & Industrial Parks

• Defence

– Land Systems, Aviation and Defence Electronics

• Onshore Drilling
• Polymers, Petrochemicals & Chemicals
• Equity Investment in Various Business

– Civil Infrastructure & Transportation – MRT Stations, Roads, Bridges, Airports, Expressways, Jetties, Residential & Commercial Building, Leisure & Hospitality – Environment – Water and Wastewater Treatment plants & Sewage Treatment Plants, Reservoir, Tunnel & Caverns – Power Plants – Coal Mining & Commercial Real Estate Development – Oil & Gas – Petrochemicals, Chemicals & Fertilizers – Power : Nuclear & Thermal – Automotive & Aerospace

Sembawang Engineers & Construction Pte Ltd PL Engineering Punj Lloyd Ltd

4

Punj Lloyd Limited (A Diversified Global EPC Conglomerate) Sembawang Engineers & Constructors Pte Ltd (One of the leading EPC Co. in Singapore) PL Engineering Limited (An Engineering Services Co.)

Investor Presentation

Punj Lloyd Ltd

Overview

• Providing services in Energy, Infrastructure, Defence and Petrochemicals Sectors
• Presence in 20 countries across South East Asia (Singapore, Hong Kong, Indonesia, Thailand etc)

South Asia, Middle East & Africa etc.

• Rich multicultural manpower from different nationalities
• International clients includes Government, Major Oil & Gas Companies, Power Developers & big

Private sector Companies

• Equipment Assets worth US $ 400 million
• Declared „Infrastructure Company of the Year‟ at Essar Steel Infrastructure Awards 2010 in

association with CNBC TV 18

• Dedicated Defence Manufacturing Facility at Malanpur, near Gwalior in Madhya Pradesh
• Floated “Infrastructure development” arm of the group by the name of “Punj Lloyd Infrastructure

Ltd”, as 100% subsidiary, with focus on Road Projects (PPP/ BOP) & Solar Power

• Strategic Equity Investments in Businesses – Security Services, Insulation, Health Care & Airline

MRO (Maintenance, Repair & Operations)

• Maintain high standards of Health, Safety, Environment, Quality & Security

5

Investor Presentation

Sembawang Engineers and Constructors Pte Ltd – (SEC)

• Acquired by Punj Lloyd in June 2006 and headquartered in Singapore
• Over 29 years of professional excellence in Civil Infrastructure & Buildings, Utilities, Transportation,

Environmental & Power sectors.

• Fulcrum of activities centering around Project delivery and Project development underwriting.
• In Project delivery underwriting, one of the leading EPC company in Singapore
• having operations across Singapore, Hong Kong, Indonesia etc
• Have taken diverse spectrum of complex projects in specialized area of mega infrastructure,

high rise building & utility work

• Expended into project development underwriting (Coal Mining & Commercial Real Estate etc) to

enhance competitiveness improve value-adds and to diversify revenue base.

• Revenues as on March 31, 2010 – S$ 325 million & Order backlog as on December 2010–S$ 893

million.

• Employee strength of 468
• Only Construction Co. to have been awarded the main construction contract for both integrated

resorts in Singapore – The Resorts at Sentosa & the Marina Bay Sands (MBS).

• 1st Local contractor to win more than S$ 1 billion orders in a single year.
• Acquired certificates of ISO 9001, ISO 14001 and OHSAS 18001 for quality, environmental and

safety, respectively

6

Overview

Investor Presentation

PL Engineering Ltd

7

Overview

PL Engineering, a subsidiary of Punj Lloyd and headquartered in Gurgaon, India, is a multi-disciplinary Design and Engineering Company.

• Engineering

services for Oil & Gas, Petrochemical/ Chemical, Power (Thermal & Nuclear), Infrastructure, Polysilicon, Automotive & Aerospace industry

• Complete offering from Concept to Commissioning
• Pre–Bid Engineering
• FEED (Front End Engineering Design)
• Detailed Design & Engineering
• Engineering support during Procurement/ Construction
• Works as captive for Group companies as well as serves Global Clients
• Offices in India, Middle East, UK & South East Asia
• One of the few Engineering Company qualified by Department of Atomic Energy, India for doing

engineering for Nuclear Power Plant

• More than 750 people
• ISO 9001 certified

Investor Presentation

Professional and Experienced Management

LUV CHHABRA

Director – Corporate Affairs

ATUL PUNJ

Chairman Awarded „First Generation Entrepreneur of the Year 2008‟ by CNBC TV 18

P.K. GUPTA

Director – India & SEA

NITEN MALHAN

Managing Director Warburg Pincus

• DR. NARESH KUMAR TREHAN

Chairman Medanta

SANJAY GOPAL BHATNAGAR

CEO, WaterHealth International (WHI)

BOARD OF DIRECTORS OTHER KEY MANAGEMENT PERSONNEL

SANJAY GOEL CEO – PL Engineering RIC GROSVENOR

President & CEO Sembawang E & C

RAVINDRA KANSAL

President & CEO - Middle East, Africa & CIS

PARDEEP TANDON

President & CEO – Buildings & Infrastructure (ME & Africa)

ATUL KUMAR JAIN

President & CEO - Middle East Africa & CIS

SIDHARATH TULI

Group President - Human Resource

S S RAJU

President & CEO - Infrastructure, India

SHIVENDRA KUMAR

President & Head Energy – South Asia

V P SHARMA

President – Offshore

PREDEEP K GUPTA

President – F & A

DINESH THAIRANI

Group Head Legal & Inter Audit, Company Secretary

ANIL JAIN

Head – Investor Relations

INDEPENDENT DIRECTORS

PHIROZ VANDREVALA

Executive Director, Tata Consultancy Services MS EKATERINA SHARASHIDZE

• Ex. Minister of Economic

Development, Govt. of Georgia

NON –INDEPENDENT NON EXECUTIVE DIRECTOR

8

MITHLESH SATIJA

Chief Risk Officer

Investor Presentation 9 CASPIAN PUNJ LLOYD KAZAKHSTAN LLP ATYRAU ASIA PACIFIC PUNJ LLOYD PTE LTD SINGAPORE

REGIONAL HEADQUARTERS

MIDDLE EAST PUNJ LLOYD LTD ABU DHABI SOUTH ASIA PUNJ LLOYD LTD GURGAON EUROPE PUNJ LLOYD LTD UK AFRICA PUNJ LLOYD LTD LIBYA

SUBSIDIARIES

PUNJ LLOYD INFRASTUCTURE LTD INDIA PUNJ LLOYD DELTA RENEWABLES PVT. LTD INDIA PUNJ LLOYD UPSTREAM LTD, INDIA SEMBAWANG ENGINEERS & CONSTRUCTORS PTE LTD SINGAPORE PL ENGINEERING LTD INDIA DAYIM PUNJ LLOYD CONSTRUCTION CONTRACTING CO LTD SAUDI ARABIA

JOINT VENTURE COMPANIES

KAEFER PUNJ LLOYD LTD INDIA THIRUVANANTHAPURAM ROAD DEVELOPMENT COMPANY LTD, INDIA

Organisational Structure

Investor Presentation

Global Presence – The Group

INDIA UK BAHRAIN TURKMENISTAN KAZAKHSTAN OMAN LIBYA SINGAPORE HONG KONG THAILAND INDONESIA MALAYSIA VIETNAM CHINA UAE SAUDI ARABIA QATAR YEMEN IRAN IRAQ

10

Investor Presentation

Journey & Major Milestones – The Group

Construction Construction and Management Procurement and Fabrication Engineering and Design

Moving up the construction value chain with a broadened geographic footprint and service offering

2010 2009 2008 2007 2006 2005 2004 2002 1999 1997 1994 1993 1st EPC contract in oil & gas sector Large Diameter gas pipeline contract by GAIL 1983 1992 1995 1996 1998 1st overseas pipeline contract in swamp & shallow water 1st highway construction project 1st Thermal power project 5 Refinery Projects (including two EPC Refinery Projects) 1st LNG Terminal Longest stretch

• f pipeline

557 km 1st Middle East contract 1st overseas contract – Indonesia 1st pipeline project Entry into Caspian region 1st Overseas EPC Pipeline contract in Offshore EPC Storage Terminal contract in Asia Pacific 1st LPG Cryogenic Tank Project 1st EPC (India) pipeline contract in offshore 1st Refinery Project Acquired Sembawang Engineers & Constructors Private Limited Punj Lloyd Upstream Ltd incorporated World largest single stream LDPE Plant in U.K. Group forays into Solar Utility space Opens offices in Hong Kong, Turkmenistan and Thailand World largest wheat to Ethanol biofuel plant in U.K.

11

Investor Presentation

Major Breakthroughs – The Group

South East Asia‟s most advanced Underground Expressway including 9 km tunnel Only Indian Co. to be awarded Pipeline of the century – BTC pipeline Constructed Changi‟s Water Reclamation Plant & Resorts World at Sentosa 130 years of experience in polymers & petrochemicals 3 LNG Terminals and LPG tank farms in India and

• ver 300 tanks globally

Singapore‟s LRT / MRT Changi Airport Terminal Extension Nuclear > 3 million engineering man hours World‟s largest Wheat based Bioethanol Plant All terrain pipeline specialists, With over 10,000 km, larger dia pipelines Executing Power Projects for more than 2240 MW as EPC Contractor (BOP)

12

Investor Presentation Offshore Pipelines

• Uran Trombay Oil & Gas Pipeline Projects, India
• Tunu Field Development Phases 4-9, Indonesia
• Panaran Pemping Gas Pipeline, Indonesia

Offshore Platforms

• Heera Redevelopment Offshore Platform, India
• Betara Complex Development Project, Indonesia
• South Utility Platform (TP 11 S / EPSC 5), Indonesia
• Poleng Process Platform, Indonesia, Indonesia

Pipelines, International

• Sabah Sarawak Gas Pipeline, Malaysia
• Strategic Gas Transmission project, Qatar
• Gas Export Pipeline, Oman
• OGC Pipelines, Oman
• EPIC of Doha Urban Pipeline Relocation, Qatar
• EPC for Oil & Gas Export Pipelines, Kazakhstan
• South Sumatra to West Java Gas Pipeline Phase I,

Indonesia

• Asab Gas Development Project Phase II, Abu Dhabi
• Ethane Butene Pipeline, Abu Dhabi
• Baku-Tbilisi-Ceyhan Pipeline, Turkey and Georgia
• KAM Pipeline Project, Kazakhstan

Pipelines, India

• East West Gas Pipeline
• Dahej-Vijaipur Pipeline
• Dabhol-Panvel Pipeline
• Dahej-Uran Pipeline
• Mundra-Delhi Pipeline
• Mangalore-Bangalore Multi-Product Pipeline
• Jamnagar-Loni LPG Pipeline
• Kandla-Bhatinda Multi-Product Pipeline

Refineries/ Offsites & Utilities/ Field Development

• Yemen LNG Project for Utilities & Offsites, Yemen
• Fuel Systems New Doha International Airport, Qatar
• Peciko Field Development Phase 4, Indonesia
• Motor Spirit Quality Upgradation Project, Barauni

Refinery, India

• Hydrocracker Unit & Hydrogen Generation Unit,

Haldia Refinery, India

• Delayed Coker Unit and LPG Merox Block, Vadodara

Refinery, India

• Sulphur Block, Bharat Oman Refinery, India
• Coker Island of DCU, Mangalore Refinery, India
• Shah Gas Gathering Package I, Abu Dhabi
• Huwailah Flowline, Wellheads & Transfer Line

Project, Abu Dhabi

Major Projects & Service Offerings – The Group

Airports

• Terminal extension, runways, hangars and control

towers, to support facilities such as training centers, freights and cargo terminals, in-flight catering centers and MRT system for Asia‟s major aviation hub, the award winning Changi Airport, Singapore

• The greenfield airport project in Sikkim, India

13

Investor Presentation Tankage and Terminals

• Offsite & Storage Facilities for Panipat Refinery
• Bulk Liquid Storage & Blending Facility at Meranti &

Jurong, Singapore

• Tank Terminal Project at Pulau Busing Tankstore,

Singapore

• LNG Storage Tank Expansion, Dahej
• Low Storage for Receiving Terminal, Hazira
• LNG Storage and Regasification Terminal, Dabhol

Polymers & Petrochemicals

• EPC for 300 KTPA LDPE Plant, Thailand for PTT

Polyethylene Co

• FEED & EPC for 400 KTPA LDPE Plant, UK
• EPC for 300 KTPA LDPE Plant, Iran
• EPC for 250 KTPA Polystyrene Plant, Iran
• 400 KTPA LDPE Plant, China
• 226,000 TPA LDPE Project, Jubail, Saudi Arabia
• EPC of Polyurethane Plant, Seraya, Jurong Island,

Singapore

• EPCM for 70,000 MTPY PA Plant, China

Renewables

• Commissioned World‟s largest wheat based ethanol

plant in the UK

• Five prestigious turnkey solar power projects from

Punjab Government

• India‟s largest solar based EPC project in Bihar

implementation of 850 Solar-Powered Water Treatment Plants Thermal

• EPC 3 x 700 MW Power Plant - BOP Components,

erection of Turbine & Generator and Coal and Ash Handling Plants, Malaysia

• EPC High Pressure piping system for 150 MW Paka

Power Plant, Malaysia

• 2 x 270 MW Thermal Power Station, Dhariwal

Infrastructure, Maharashtra, India

• 2 x 250 MW Thermal Power Station, Rajasthan Rajya

Vidhyut Utpadan Nigam Ltd., Rajasthan, India

• 6 x 600 MW Thermal Power Plant, SEPCO,

Chhattisgarh, India

• 4 x 250 MW Jindal Power Plant, Chhattisgarh, India

Nuclear

• Upgrade of Britain‟s Submarine Refit Complex at

Devonport

• Nuclear Fuel Reprocessing for Sellafield Facility, UK

for BNFL

• New Fuel Oxide Plant for BNFL, UK
• Vitrification Plant for BNFL, UK
• Rajasthan Atomic Power for Nuclear Power Corp. of

India, India Commercial Complexes

• Tianjin International Building, China
• The Exchange and Yangtze Plaza, China
• German Centre for Industry & Trade, Singapore

Major Projects & Service Offerings – The Group

14

Investor Presentation Hotels & Resorts

• Marina Bay Sands Integrated Resort‟s, North Podium

comprising the Casino, Theatres and Retail Arcade, Singapore

• Hotels, Beach Villas, Oceanarium and Water Theme

Park for Resorts World Sentosa, Singapore Healthcare Facilities & Hospitals

• Medanta, The Medicity, India
• Singapore National Eye Centre, Singapore
• Changi General Hospital Substructure Package,

Singapore Residential Complexes

• The Jumeirah Islands Villa Project, Dubai
• The Edge on Carnhill, Singapore

Subway & Metro Systems

• Expansion of the existing MRT network including New

Circle Line and DownTown Line in Singapore

• Design and construction of Elevated Viaduct including

structural work of four Stations for Delhi Metro Rail Corporation, India

• Construction of Eight Stations and Viaduct, Bangalore

Metro Rail Corporation, India Tunnels & Caverns

• Paya Lebar Tunnel, design and construction of 5.1 km long

by 6.5 m internal diameter by 30 m deep tunnel and 6 shafts, Singapore

• Kranji Tunnel, design and construction of 12.6 km long by

3.6 m internal diameter tunnel and 10 access Shafts, Singapore Highways & Expressways

• Upgradation of the Belgaum-Maharashtra Border Highway

Section of NH-4 in Karnataka, India

• Construction of National Highway No 9, GMR Hyderabad

Vijayawada Expressways, India

• Projects for the Golden Quadrilateral including East West

and North South Corridors, India

• Singapore Kallang-Paya Lebar Expressway, Singapore
• Tunnel Structure Linking East Coast Parkway with Nicoll

Highway, Singapore

• Vadodra-Halol Tollway, India

Seaports & Terminals

• Pulau Seraya Oil Tanking Terminal, Singapore
• Finger Pier Extension, Singapore

Bridges, Flyovers & Interchanges

• Construction of 330 m causeway to Pulau Brani and a

280 m long bridge to Sentosa, Singapore

• Construction of interchange at junction of Seletar/

Central Expressway/Yio Chu Kang Road, Singapore

Major Projects & Service Offerings – The Group

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Investor Presentation

Superior Execution Capabilities – Key Differentiators

Shorter Execution Cycle

• An

established track record for successful completion of projects within tight schedules, in India & International markets

• Reputation

for undertaking highly challenging engineering and construction projects

• 506 km 42” dia Dahej – Vijaipur Gas pipeline

which was completed within a span of 9 months

• Lowering of 21 km of 48” dia gas pipeline project

at Oman in a single day.

Risk Management Information Technology

• 3 Tier risk management process is followed
• Identification of risk covering entire business and

project life cycle

• Developing risk mitigation strategies in terms of

early detection of risks & timely implementation of counter measures

• Monitoring

the process by way

• f

various exceptional reporting and its analysis

• Evaluation of risks in terms of rewards & risk

tolerance before any decision making

• Optimal resource utilization through Oracle ERP
• “Bid Decision” system for efficient project bidding

process

• Best of breed project management solutions
• Cost efficiencies and controls through eSourcing &

Reverse Auctions

• Satellite technology used to ensure real time flow of

information from project sites

Equipment

• Own large Fleet and wide variety of sophisticated

construction equipment including 56” wide pipe laying equipment and Barges.

• Equipment

fleet

• f
• ver

13000 items in 200 categories valued at USD 400 Million

• Central Workshop at Gwalior with modern facilities

and dedicated, trained & professional staff to repair/overhaul all the equipment in–house.

• Enterprise Asset Management which is part of

Oracle ERP, software to manage all equipment across its sites all over the world.

16

Investor Presentation

Marquee Client Base

17

Investor Presentation

` Cr.

Consolidated Financial Position

18

• S. N

Particulars FY07 FY08 FY09 FY10 FY11 1 Net sales & Contract Revenue 5,127 7,753 11,876 10,448 7,850 2 Other Income (excl Interest Income) 49 90 116 414 317 3 Total Sales & Contract Reveue (1+2) 5,176 7,843 11,992 10,862 8,167 4 Total expenditure 4,752 7,112 11,608 10,320 7,546 5 EBIDTA (3-4) 424 731 384 542 621 6 Interest Expense 83 129 216 307 357 7 Interest Income 30 28 10 13 21 8 Depreciation 106 147 177 227 269 9 PBT (5-6+7-8) 265 483 1 21 16 10 Tax 69 123 226 137 66 11 PAT (9-10) 196 360 (225) (116) (50) 12 Cash Profit (8+11) 302 507 (48) 111 219 13 Equity Share Capital 52 61 61 66 66 14 Networth 1,279 2,743 2,485 3,028 2,984 Ratios 1 EBIDTA as % of Sales (5/1) 8.2% 9.3% 3.2% 5.0% 7.6% 2 ROCE 12.9% 15.1% 5.8% 7.6% 6.2% 3 Basic EPS (`) 7.54 12.65 (7.42) (3.37) (1.54) 4 DPS (`) 0.30 0.40 0.30 0.15 0.15 5 Book value per Share (`) 48.9 90.4 81.9 91.2 89.9 6 Net Debt to Equity (Times) 0.54 0.33 1.11 1.27 1.12 7 Current Ratio 1.52 1.70 1.69 2.30 2.11

Investor Presentation

Contract Revenue by Region / Segments

For FY 2011 By Geography Diversified geographical mix By Business Segment Operations across multiple segments For FY 2011

19

Investor Presentation

Shareholding Pattern & Market Summary

20

FIIs 10%

MFs / Banks 13%

Promoters Group 37% Public 40%

IPO January 2006 Stock Split (FV ` 10/– to FV ` 2/–) April 2007 BSE Code 532693 NSE Code PUNJLLOYD NSDL / CDSL – ISIN INE701B01021 Bloomberg Code PUNJ:IN Reuters Code PUJL.BO

As on June 30, 2011

Investor Presentation

Consolidated Annual Operational Results

5,176 7,843 11,992 10,862 8,167 12.89% 15.15% 5.80% 7.61% 6.24% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2000 4000 6000 8000 10000 12000 14000 FY07 FY08 FY09 FY10 FY11 ROCE % Revenue (` Cr.) Revenue ROCE %

REVENUE EBITDA

424 731 384 542 621 8.19% 9.32% 3.20% 4.99% 7.60% 3% 6% 13% 25% 50% 100% 100 200 300 400 500 600 700 800 FY07 FY08 FY09 FY10 FY11 EBITDA Margin (%) EBITDA (`Cr.) EBITDA EBITDA Margin 21

Investor Presentation

Industry Overview – India

Engineering construction activity integral to energy industry, infrastructure and industrial development

Industry Characteristics

Dominated by a few industry majors in Oil & Gas Segment High barriers to entry Credibility and experience provides competitive edge Industry is witnessing high growth

1 2 3 4 5 Key Industry Drivers

Highways/ Roads

• Huge investment

planned

• GOI Attracting FDI

for infrastructure projects

• US$ 98 billion

investment required for roads

Oil

• Oil prices leading to

larger investments in upstream and downstream sectors

• Increasing demand

from Asia

Power

• Supply shortage
• India has one of

the lowest electricity consumption levels

• US$ 251 billion

allocated for Power Sector in the 12th plan

Construction and Engineering Demand

Gas

• LNG considered as

the fuel of the future

• Cheapest to

transport through pipes

Ports

• Huge investment

plans

• The

number/ capacity

• f

ports are much less as compared to cargo movements.

22

Investor Presentation

Increased Emphasis on Indian Infrastructure

Average GDP growth rate (2008–12)

Growth in economy will spur requirements for Infrastructure growth

• Increased budgetary allocation for infrastructure projects
• The expected infrastructure investment in the Twelfth Plan is US$ 1 trillion
• World bank is likely to lend $15bn to $20bn to India's Infrastructure Sector
• Efforts to raise funds from multi–lateral financial development institutions

(Source: India Infrastructure Research Magazine)

Fund Allocations in 12th Plan (US$ bn)

(Source: United Nations Statistical Division)

…. Infrastructure spends at less than 5% of GDP

12th plan

23

Investor Presentation

Huge Investments Required to Meet Power Demand in India

1,700 4,600 13,000 28,000 66,000 112,000 212,000

• 50,000

100,000 150,000 200,000 250,000 1950 1960 1970 1980 1990 2005 2012E (MW)

• India has been able to achieve an economic growth rate of 8% p.a. during last few years and is poised to achieve

double digit growth rate.

• During the period 2007–12 average economic growth rate has been projected at 9% per annum. To sustain this

economic growth power sector has to also grow by 9%.

• To revamp the Power Sector, number of path breaking initiative have been taken in the recent past, both in terms of

policy pronouncements and programs ranging from bringing about efficiency in generation segment areas and consolidation of electricity delivery system.

• The present Inter regional capacity is 11,500 MW and projects in hand indicate that this capacity would be enhanced to

30,000 MW by 2012.

Installed Capacity

Largest Investment Opportunities in Power Sector

Per Capita Consumption of Electricity

(Source: Ministry of Power, GOI website) (Source: United Nations Statistical Division)

24

Investor Presentation 25

Growing Globally Oil, Gas & Energy Demand

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

OECD North America China OECD Europe Other Asia Africa RussiaM iddle East OECD Pacific Other Latin America India Other Transition Economies Brazil

Cumulative Investment (billion dollars)

0% 5% 10% 15% 20% 25%

Share in Global Investment

Regional Demand (Million barrels per day)

• Given the latest upward revision in world GDP (gross

domestic product), world oil demand growth is forecast at 1.23 million barrels per day (bpd) averaging 87.3 million bpd in 2011, 50,000 bpd higher than last month's estimate and 89 million bpd by 2014

• Demand for Oil remains resilient in face of high oil

prices.

(Source: IEA; Oil Market Report; June 2010)

Major Global Oil Demand Growth 2008–10 Growth Drivers

(Source: International Energy Agency; IEA Working Party on Fossil Fuels; May 2004) PLL‟s Target Market

Energy Investment by Region 2001–2030

• More than US$ 16 trillion needs to be invested in

energy–supply infrastructure over next three decades

• Oil & Gas Sector would each account for more than

US$ 3 trillion or around 19% of total investment

• Half of the total investment is expected to take place

in developing countries

• India

is expected to contribute to expected expenditure

Growth Drivers

Investor Presentation 26

Significant Opportunities in Pipeline Construction across the World

• Total natural gas consumption worldwide increases by 44% in the IEO2010, from 108 trillion cubic feet in 2007 to 156

trillion cubic feet in 2035

• Driven by increasing demand for oil and gas, Asia Pacific is expected to witness the largest addition of pipelines in the
• world. It is expected to undergo a network addition of North America with 33,320 Km and Europe with 20,350 Km

network.

• Export Pipeline systems will expand to bridge the demand supply gap in mature economies

Pipelines Under Construction/On Drawing Board Large Pipeline additions through 2030 Volumes of Transportation Facilities Expected to Rise Substantially

North America – 28, 099 South/Central America and Caribbean – 9,869 Africa – 7759 Middle East – 9,345 FSU – Eastern Europe – 18,896 Western Europe and EU Countries – 4,445 Asia Pacific Region – 41,525 Mileage Totals – 36,304 Under Construction 83,634 Planned 119,938 Total

(Source: Pipeline & Gas Journal / Goliath : Feb 2010) (Source : Pipeline & Gas Journal – January 2011)

Investor Presentation

Industry Overview – Singapore

• Singapore‟s total construction demand from

2012 to 2015 is likely to be between S$19 billion and S$26 billion annually

• Transport infrastructure is a major focus

area for government investment program.

• Though

power sector

• pportunity

are limited in Singapore due to matured market, but EPC companies are likely to witness demand due to the upgrading or extension

• f existing power facilities

% S$ billion

(Source: Building and Construction Authority of Singapore, Department of Statistics, Frost & Sullivan. (1) 2011 values for construction demand are a mean of the range of values forecast for the year.)

Civil Infrastructure and Building

• The Singapore government plans to invest around S$60 billion to further expand and double the

country‟s existing MRT network to 278km by 2020

• [S$300 million – S$400 million] is earmarked for the development of expressways annually

Environmental

• The water sector has been identified as one of the key growth areas and its contribution to

Singapore‟s GDP is expected to increase from S$500 million in 2003 to S$1.7 billion in 2015 at a rate

• f more than 10%

Property

• Total retail sales to increase by 9.2% from S$42.5 billion in 2011 to S$46.4 billion in 2014

− This steady growth translates into increasing demand for retail buildings and a significant

• pportunity for EPC companies and investors

Industrial and Process

• The growth of the petroleum, chemicals and pharmaceutical industries are likely to catalyze a new

wave of high–value downstream investments in Singapore's chemical industry which will generate significant opportunities for EPC companies

27

Investor Presentation 28

Industry Overview – Hong Kong

• GDP of Hong Kong is expected to grow

around 8% in 2010

• Services are the major part of GDP

contributing nearly 90%

• Major investments planned in Inland and

Cross-boundary rail transportation

– HKD 110 billion of contracts awarded in last 5 years for development of existing MTR commuter network – Nearly HKD 12 billion contracts awarded for Harbour Area Treatment Scheme – Several contracts for Sewerage treatment awarded

• Major projects announced in 5 year plan

announced in 2011

– Guangzhou-Shenzhen-Hong Kong Express rail link – Hong Kong-Shenzhen western express line – Hong Kong-Zhuhai-Macao Bridge – Development of Qianhai New District, Schenzhen – Development of Nansha New District, Guangzhou

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 r Million HKD (current market prices)

Hong Kong GDP

(Source: Census & Statistics Department, Government of Hong Kong) (Source: Highways Department, Government of Hong Kong)

Investor Presentation 29

Retail Property and Construction Outlook – China

• Future growth is expected from tier-two and tier-

three cities given higher GDP growth and low construction per capita

• Increasing trend of relocation to tier-two and tier-

three cities due to increasing costs of living and doing business in tier-one cities

• Increasing requirements for large-scale retail

malls due to:

• Increasing urbanization
• Rising disposable income
• Aspirational lifestyle of the Chinese consumers
• Regulatory environment
• Funding is difficult due to current restrictive

monetary policies

• Access to low-cost funding provides competitive

advantage

• Attractive opportunity for both local Chinese and

foreign developers

• Expected strong growth in the retail malls sector
• Lower operating costs in tier-two and tier-three

cities

• Top companies are state-owned enterprises
• Foreign companies generally seek out mutually

beneficial arrangements with local companies: the foreign company gets access to the high- growth Chinese market, while the local companies benefit from learning about new construction technologies and techniques

Significant growth potential in tier-two and tier- three cities

Growth in Disposable Income per Capita Construction Per Capital (RMB), 2004 - 08

(Source: Frost & Sullivan, National Bureau of Statistics of China)

Investor Presentation 30

Industry Overview – Africa

• $ 1.6 trillion – Africa‟s GDP in 2008 (roughly equal to

Russia‟s or Brazil‟s)

• The economy grew @ 5% for the last 10 years making it the

world‟s 3rd largest growing region

• Improving political stability – A positive for new investments
• Infrastructure is seen as key bottleneck to economic growth

in the region

• Infrastructure is expected to grow @ 9% in the next 10 years
• Current African spending is about $72 Billion
• China is leading the infrastructure development in Africa with

a total of $15 billion investments during 5 years (2003-2007)

(Source: Lions on the move: The progress and potential of African economies, Mckinsey Global Institute report)

Investor Presentation 31

• Abundant availability of OiI & Gas to drive Exploration

& Production activity

• Proven oil reserves of 127.7 billion barrels about 10%
• f global proven reserves
• Oil production of about 10 million barrels per day
• 521 trillion cubic feet of Natural gas proven reserves

(about 8% of global proven reserves)

(Source: Statistical review of world energy 2010, British Petroleum report). Table: Oil – Production & Reserves in Sub-Saharan African Countries Oil & Gas supply & Infrastructure in Sub-Saharan African Countries

Increasing Global demand for Oil and gas coupled with rising prices have led to significant increase in investments in African Oil & Gas assets and will continue to drive growth in future

Africa – Oil & Gas

Investor Presentation

Awards & Accolades – PLL

32

PUNJ LLOYD GROUP

• Ranked no. 58 under international contractors category by ENR.com in 2010
• Ranked no. 104 under global contractors category by ENR.com in 2010
• Infrastructure Company of the Year – 2010 (CNBC/Essar)
• Infrastructure Excellence Award‟ in the Oil & Gas category for the Dahej–Vijaipur Gas Pipeline – 2009
• Chemtech Award – Outstanding contribution to Engineering – 2009
• Dun & Bradstreet – Rolta Corporate Awards 2008
• Best Infrastructure Award NDTV Profit Business Leadership Awards 2008
• Top Indian company „Construction – Infrastructure Development‟

PROJECT EXPORTS PROMOTION COUNCIL OF INDIA

• Maximum Value of Overseas construction and engineering projects contracted for year 2005–2006 / 2007
• Maximum Turnover in Overseas construction contracts for year 2004–2005 / 2006–7
• Maximum Foreign works secured in new areas for Year 2002–03 / 2003–04 / 2004–05

AWAREDED BY GREENTECH FOUNDATION

• 2004 – Safety Award – BTC Pipeline Project
• 2005–06 – Environmental Excellence – Gold
• 2007 – Safety – Gold
• 2008 – Environment Excellence – Platinum – Safety Gold
• 2009 – Environment Excellence – Gold
• 2010 – Safety Award – Gold

Investor Presentation

2011 2010 2009

Awards & Accolades – SEC

2008 2000 1994

Workplace Safety and Health Award (Silver)

Land Transport Excellence Awards for Safety Excellence Category

33

Investor Presentation 34

Business Strategy and Future Outlook

Expand operations to

• ther industries and

target high potential project segments Continue to expand

• perations in India and

internationally Continue to focus

• n health, safety

and environment standards Develop and maintain strong relationships with

• ur clients and strategic

partners Focus on performance, timely project execution and Improvement in debt leveraging Further enhance our engineering and design capabilities Continue to focus on EPC contracts from clients as well as contractors

Investor Presentation 35

Contact Us

ANIL JAIN

Head – Investor Relations Punj Lloyd Group Direct Tel. No.: 91–124– 2620221 E–Mail – aniljain@punjlloyd.com

RIPUDAMAN SINGH

Executive – Investor Relations Direct Tel No.: 91–124–3393303 E–mail – ripudamansingh@punjlloyd.com

Corporate Office

Punj Lloyd Ltd 78 Institutional Area Sector – 32, Gurgaon – 122 001

• Tel. No.91–124–2620123

Fax No.91–124–2620111

Website : www.punjlloydgroup.com Investment & Financial Communication Advisor GAVIN DESA / SAMEERA KEDAR

Citigate Dewe Rogerson

• Tel. No.: 91–022– 6645 1237 / 1261

Fax: 91–022–6645 1200 E–Mail – gavin@cdr–india.com / sameera@cdr–india.com

Thank You