Presentation by Jaiprakash Associates Limited CONFIDENTIAL | MAY - - PowerPoint PPT Presentation

CONFIDENTIAL

CONFIDENTIAL | MAY 2008

Presentation by Jaiprakash Associates Limited

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CONFIDENTIAL

Disclaimer

This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to the Company’s future business developments and economic performance. All statements regarding the expected financial condition and results of operations, business, plans and prospects of the Company are forward-looking statements. These forward-looking statements include statements as to the Company’s business strategy, the Company’s revenue and profitability, planned projects and other matters discussed in this presentation regarding matters that are not historical fact. These forward-looking statements and any

• ther projections contained in this presentation (whether made by the Company or any third party)

involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. The Company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this presentation as a result of new information, future events or

• therwise.

Exchange Rate: 1 USD = 40 INR

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• 1. Company Overview

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… …

“To strive for excellence in every activity we undertake as we contribute in nation building through our participation in infrastructure sector of the country utilizing resources

• ptimally, while growing with human face.”

“To strive for excellence in every activity we undertake as we contribute in nation building through our participation in infrastructure sector of the country utilizing resources

• ptimally, while growing with human face.”

Jaypee Group At A Glance

Power Generation Real Estate & Expressways

Cement

Engineering & Construction

Largest Private Hydropower

Group

700MW operational 1000MW in execution (H.P.) 2525 MW in Arunachal (MoA) 720 MW in Meghalaya (MoA)

9 million tpa capacity

54.3% participation in 10th

Five year plan

Current Order

Book: US$ 10.6 Bn.

• 19.5x FY08 E&C

Revenue

3rd Largest Cement Group by 2010 with 25 MTPA capacity

Thermal Power

(2X660MW) at Sidhi (M.P.) under dev.

160 km Taj

Expressway from Noida to Agra

Real Estate Development

• Taj expressway: 400 Mn. sq feet
• Ganga expressway: Approx. 3.3 Bn. sq feet

1,047 km Ganga

Expressway from Noida to Ballia

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Corporate Structure

Market Cap. (22 Apr.’08) - JHPL: INR 3,353Crs (US$ 838 Mn.); JHL: INR 867 Crs (US$ 217 Mn.) Market Cap. (22 Apr.’08) - JHPL: INR 3,353Crs (US$ 838 Mn.); JHL: INR 867 Crs (US$ 217 Mn.)

Jaiprakash Associates Limited (“JAL”)

Cement$ Cement$ Engineering, Construction & Real Estate Engineering, Construction & Real Estate BOO Power BOO Power Infrastructure & Hospitality Infrastructure & Hospitality Jaypee Hotels Limited Jaypee Infratech Limited#

72% 100%

Cement Cement

$ Installed Capacity-19.5 MTPA

Himalayan Expressway Limited

100%

11 MTPA Subsidiaries & Joint Ventures Coal Mining Coal Mining Joint Ventures with State Govt. For 1320 MW Thermal Power

Jaiprakash Power Ventures Limited (400 MW-Hydro – in Operation) (1320 MW Thermal – Under Implementation) 67.39% - POST IPO JKHCL (1000 MW

• Karcham

Wangtoo Project)

Jaypee Powergrid Limited

23% 55.36%

Arunachal Projects (2500MW) Meghalaya Projects (720MW)

Jaiprakash Hydro Power Limited (300 MW - Baspa-II Project) 63.3% 51% 74% 89%

Jaypee Ganga Infra.

• Corp. Limited

100%

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• 2. Infrastructure and Real Estate

a) Leading Infrastructure Company in India b) 54% share in 10th Five year plan Hydropower Projects c) 160 km Expressway connecting Noida to Agra with 400 Million sq feet Real Estate Development d) 1,047 km Expressway connecting Noida to Ballia with 3.3 Billion sq feet Real Estate Development

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The Leading Infrastructure Company in India

N E P A L

BANGLADE SH

BHUTAN

Baghalihar I & II 900MW Sardar Sarovar 1,450MW Karcham-Wangtoo 1,000MW

Alimineti Madhava Reddy Project (51 Km Long Tunnel)

Teesta V 510MW E&C Projects under execution Sidhi – Thermal Power 1320MW (2X660MW) Taj Expressway 160 km Zirakpur-Parwanoo Toll road- 27 km Roads& Real Estate Thermal Power

PROUD TO

PARTICIPATE IN:

Largest Concrete Dam

in India – Sardar Sarovar

Largest Rockfill Dam

in India – Tehri

Largest Underground

Powerhouse in India– Naptha-Jhakri

Second Largest

Surface Powerhouse in India – Indira-Sagar

PROUD TO

PARTICIPATE IN:

Largest Concrete Dam

in India – Sardar Sarovar

Largest Rockfill Dam

in India – Tehri

Largest Underground

Powerhouse in India– Naptha-Jhakri

Second Largest

Surface Powerhouse in India – Indira-Sagar Ganga Expressway at 1,047 km, the largest infrastructure project in the country at Rs 60,000 Crs (US$ 15 Bn) is to be executed by JAL Ganga Expressway at 1,047 km, the largest infrastructure project in the country at Rs 60,000 Crs (US$ 15 Bn) is to be executed by JAL

Jaypee Greens Real Estate

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HYDROPOWER CAPACITY COMMISSIONED BY THE JAYPEE GROUP Name of Project BUILD-OWN-OPERATE

1.

Baspa-II 300

300

3.

Chamera-II 300

300

6.

Nathpa Jhakri hydro-electric project 1500

1500

10.

Tala (Powerhouse) 1020

1020 Total (MW) 1500 300 300 1250 400 4130 7880

2. 5. 7. 8. 9. 10. 12.

EPC CONTRACTS CONTRACTS WITH VARIOUS GOVERNMENT AGENCIES 2002 2003 2004 2005 2006 2007 Total (MW)

Vishnuprayag Indira Sagar (Dam & Powerhouse) 1000

1000

Sardar Sarovar (Saddle Dam Complete) 250

250

400 Omkareshwar Dul-Hasti (Dam, Powerhouse & HRT) Tehri (Rock-fill Dam & Spillway) Sardar Sarovar (Main Dam & Power House) 1200

1200

1000

1000

520 390

400 520 390

2002-2007 : 7880 MW added to the National Grid

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Jaypee Greens is developing India’s first “golf centric” real estate project in Greater Noida

2.75 Million Sq Feet sold till 31 Mar. 2008 @ Rs 5,873 per sq ft. 2.75 Million Sq Feet sold till 31 Mar. 2008 @ Rs 5,873 per sq ft. 8 Million square feet of premium real estate

development spread over 450 acres, the project integrates exclusive homes with golf course, landscaped parks and emerald greens.

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hole Greg Norman signature championship golf course, which is also India’s longest course at 7347 yards, 88 bunkers and 14 water bodies

60-acre nature reserve with theme parks A 200 room Boutique Spa Hotel in

collaboration with SIX SENSES by 2010

Real Estate: Jaypee Greens

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AGRA MATHURA

DISTRICT AGRA DISTRICT HATHRAS

SADABAD DISTRICT MATHURA

TAJ ECONOMIC ZONE

DISTRICT ALIGARH

INTERNATIONAL AIRPORT

HARYANA CHHATA TAHSIL

GAUTAM BUDH NAGAR GREATER NOIDA NOIDA

LAND FOR DEVELOPMENT AT 5 LOCATIONS TOTAL – 6250 ACRES TO BE DEVELOPED BY JAL GREATER NOIDA TO AGRA – TAJ EXPRESS TO BE DEVELOPED BY JAL NOIDA TO GREATER NOIDA EXPRESSWAY

• COMPLETED

LEGEND :

5 4 3 2 1

Taj Expressway Project

NEW DELHI 160 km long 6 Lane Access Controlled Expressway connecting Noida to Agra

Estimated cost: Rs. 6000 Crs. (US$ 1.50 Bn.) Rights to concessionaire for 36 years Ribbon development of 25 Million Sq Mtrs of land along the Expressway Five or more locations (one location either Noida or Greater Noida)- 90 year lease

160 km long 6 Lane Access Controlled Expressway connecting Noida to Agra

Estimated cost: Rs. 6000 Crs. (US$ 1.50 Bn.) Rights to concessionaire for 36 years Ribbon development of 25 Million Sq Mtrs of land along the Expressway Five or more locations (one location either Noida or Greater Noida)- 90 year lease

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Taj Expressway Project – Real Estate Development

Land use plan approved for 600 Acres at NOIDA for 35 Million sq. ft. of real estate development consisting of primarily:

• Residential –

63%

• Institutional –

9%

• Recreational – 12%
• Roads – 12%
• Commercial –

4%

Particulars Available /Offered Area (Million Sq Ft) Total Area Sold (Million Sq Ft) Average Sale Value (Rs.) Plots 0.7 0.48 2.08 2.56 6,872 per sq ft 5,500 per sq ft

• Avg. 5,750 per sq ft

Apartments 3.38 TOTAL 4.08

Locations Area (Acres)

1.

1250* 1250 1250 1250 1250

2. 3. 4. 5.

NOIDA Dhankaur Mirzapur Tappal Agra

* 914 Acres in physical possession

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1,047 Km expressway in

Uttar Pradesh along the left bank of the river Ganga connecting Greater Noida to Ballia

35 year concession

period

Largest private sector

infrastructure project in India

Rights of development of an

estimated 30,000 acres of land along the Expressway

Estimated Cost

• Rs 60,000 crore

Estimated completion

period - 2 + 3 years

1,047 Km expressway in

Uttar Pradesh along the left bank of the river Ganga connecting Greater Noida to Ballia

35 year concession

period

Largest private sector

infrastructure project in India

Rights of development of an

estimated 30,000 acres of land along the Expressway

Estimated Cost

• Rs 60,000 crore

Estimated completion

period - 2 + 3 years

Ganga Expressway Project

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• 3. Power & Energy

a) Largest Private Sector Hydropower Developer b) Coal Block supported Thermal Power c) Transmission d) Presence in Wind Power and Oil&Gas Exploration

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89% market share in private hydropower capacity addition

Capacity Additions (MW) Capacity Additions (MW)

14,992 13,954 17,080 35,000 27,500 5,061 1,430 1,931 1992-97 1997-2002 2002-07 2007-12 Public Sector Private Sector

S

• urce: Infraline

JAYPEE GROUP CONTRIBUTION 700 MW

1,231 1,231 700 700

HYDRO THERMAL

4,975 4,975 86 86

HYDRO THERMAL

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Power Business at a glance

S.No Project Fuel Capacity (MW) Regulated Tariff (MW) Merchant Power (MW) VERs/ CERs 1 - Baspa-II (JHPL) Hydro 300 300

• 2003

1.32 Mn. VERs 3.35 Mn. CERs* CERs expected TBD 6- Hirong Hydro 500* 250* 250* TBD 2015* 7- Kynshi Stage -II Hydro 450* 225* 225* TBD 2016* TBD

• 200

660 5- Lower Siang Hydro 2025* 1025* 1000* 2014* 135* 2470 400 800 660 135* 3795 400 1000 1320 270* 6265 Hydro Hydro Thermal Hydro 2- Vishnuprayag 2006 3- 4- 8- Umngot Stage -I 2016* COD Karcham Wangtoo 2011* Jaypee Nigrie Thermal 2012* TOTAL

* Expected * Expected

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Hydro Projects Delivering Consistent Returns of 25-30% Particulars JHPL JPVL FY 2007 FY 2008 FY 2007 FY 2008 PAT* (Rs. Crs.) 115.8 115.8 69.6 491 509 14% 24% 168.5# Paid Up Capital (Rs. Crs) 491 532.5 ROE 24% 31%

*PAT from ordinary activities excluding net of tax income from extraordinary items and other income # Includes income from sale of VERs *PAT from ordinary activities excluding net of tax income from extraordinary items and other income # Includes income from sale of VERs

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4. Prominent Cement Manufacturer

a) Largest player in Central India b) 25 MTPA capacity by 2010 with

• 250 MW captive power
• Captive coal block (in MP)

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Year CEMENT (Mn. Tonnes) CAPTIVE POWER PLANT (MW) FY-10 28.30 22.90 308 MW FY-11 32.80 31.40 308 MW Installed Capacity Production 9.00 6.77 88 MW 10.30 248 MW 308 MW 32.80 19.40 32.80 FY-08 FY-09 FY-12 Installed Capacity & Expected Production by year

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Productivity gains through focus on principal components of cement cost

• Installation of modern pyro processing system in all the new

installations having lower coal consumption

• MSW plant at Chandigarh to produce pallets for kiln firing at Baga
• Recently allotted Mandla (North) Coal Block for Cement plant which

will become operational from 2011

• Expected coal cost at Rs 1600 PMT v/s Rs 2800 PMT at present

Cement Cost (%) Key Measures to Enhance Productivity/Contain Costs

• Existing split location grinding/blending plants near the market &

flyash source have resulted in reduced freight cost.

• New split location grinding/blending units at Panipat, Bagheri,

Roorkee, & Wanakbori which are close to consumption centres as well as near source of flyash

• 10 MTPA of the new capacity is entitled to various fiscal benefits.
• 10 year exemption on Sales Tax , Royalty & Electricity Duty on Captive

Thermal Power Plants for 3 MTPA UP Cement Project

• 10 year exemption on excise duty for 7 MTPA capacity at HP

24% 9% 11% 24% 19% 13%

• Existing Captive Thermal Power Plants have reduced the power cost

from Rs 406 PMT in 2001-02 to Rs 200 PMT 2006-07.

• Captive Thermal Power Plants installed at all new Cement plants

Cost of generation: Rs 2.75 per unit v/s Rs 4.50 per unit from grid

COAL COST DISTRIBUTION COST TAXES & DUTIES POWER RAW MATERIAL, FLYASH OTHERS 67%

100% CEMENT COST DETERMINANTS

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• 5. Strong Financial Profile

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Details FY-06 % Growth

• ver

FY-05 FY-07 % Growth

• ver

FY-06 3,594 (898) 9% 31% 53% 40% 1,040 (260) 620 (155) 19.1 FY-08 12% 4,274 (1,068) 1,386 (346.5) 843 (211) 27.10* 18% 23% 16% 3,307 (827) 794 (198) 404 (101) 13.61 % Growth

• ver

FY-07 Gross Revenue 19% 33% 36% EBITDA 42% PBT EPS (Rs)

• Rs. in Crs (USD in Mn)

Strong Financial Performance – FY 2007-08

*On Equity Shares with a face value of Rs 2 each the EPS is Rs 5.42

20% 190.55 377.86 404.54 JPVL 17.54 213.39 PAT 43.84 317.36 EBITDA 172.91 342.49 Revenue JHL JHPL Details 18% 15%

• Div. Declared

OPERATING SUBSIDIARIES PERFORMANCE IN FY 2008

• Rs. in Crs

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JAL – Projections

610 894 1,582 2008 2009 2013

2,163 3,963 7,644 2,340 3,926 7,069 302 112 118

2008 2009 2013

Rs Crores

(Mn USD)

E&C & Real Estate Cement

EBITDA Revenue PAT

Dividends 4,615 (1,153) 15,015 (3,754)

473 1,231 1,664 801 866 1,377 302 118 112 2008 2009 2013

1,386 (346) 3,343 (836) 610 (152) 1,582 (395) 8,007 (2,001) 2,215 (554) 894 (223)

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• Number of Shares outstanding was 1172.505 Mn of Rs 2 each as of 22 Apr. 2008
• FCCB-I Conversion at USD 97.94 Mn out of USD 100 Mn (97.94%) as of 22 Apr. 2008
• FCCB-II Conversion at EURO 157.57 Mn out of EURO 165 Mn (95.5%) as of 22 Apr. 2008
• FCCB-III Conversion at USD 4.5 Mn out of USD 400 Mn (1.13%) as of 22 Apr. 2008

Shareholding Pattern (Apr 18 ‘08) Shareholding Pattern (Apr 18 ‘08)

MF's/Banks 9.89% Promoters 44.54% FII's 24.92%

Public/PCB's

20.64%

Market Capitalisation (Rs. Crs) Market Capitalisation (Rs. Crs) 3,454 1,985 28,842 10,083

1-Apr-04 1-Apr-05 1-Apr-06 24-Apr-08

($ 496 Mn.) ($ 863 Mn.) ($ 2.5 Bn.)

($ 7.2 Bn.)

CAGR for 3 Years-140% 74% 191% 72%

Continuously Creating Shareholder Value

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• 6. Summary

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JAL Has Excellent Growth Opportunities

India’s strong consistent economic growth and infrastructure development has provided JAL with tremendous opportunities

Engineering & Construction Established track record as the leading hydropower E&C company Clear competitive advantage Immense growth potential in Indian hydropower Power

• Approx. 6000 MW portfolio with 80: 20 hydro-thermal mix and more than 40%

merchant power

Expressways and Real Estate India’s two largest expressway projects – Ganga Expressway and Taj Expressway totaling

1250 km approx. to be executed by JAL

Construction opportunity in excess of Rs 650 Billion 35 Million sq feet of Real Estate development as part of development of 6250 acres of

land along Taj expressway launched since November 2007

3.3 Billion sq feet real estate development along the Ganga Expressway Cement New cement plants in fast growing markets of the North,Central,Eastern & Western Zones

will make JAL the 3rd largest cement group in India

Dominant low cost producer of cement Strong cement demand in JAL’s natural marketing zone

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THANK YOU