Equity Capital Raise & Strategic Partnership February 2020 0
GMR to Raise INR 107.8 Bn from Strategic Partner – Groupe ADP Groupe ADP to Acquire 49% stake in GMR Airports Ltd 1
Broad Deal Contours Transaction Minority Stake Sale of 49% in GMR Airports Ltd. INR 107.8 Bn Equity Fund o Secondary Sale: INR 97.8 Bn Raise o Primary Infusion: INR 10.0 Bn Partner Aéroports de Paris SA (Groupe ADP) First tranche of INR 52.5 Bn received 2
About Groupe ADP Second largest airport group in Europe based out of Paris (France) 2 Operating 24 international airports across geographies Handled 1 234 Mn passengers (including Istanbul Atatürk) Market Cap 2 of ~ € 17 Bn Revenue 1 at €4,700 Mn and Net Income 1 at €588 Mn Has 46.12% ownership in TAV Turkey and 8% in Schiphol Group 1) For the Year 2019 2) as on February 20, 2020 3
Groupe ADP - Balanced International Footprint 2019 passenger traffic France Schiphol Group (8%) Liège – Belgium (25.6%) Macedonia (100%) Zagreb - Croatia (ADP 21% & Georgia Paris-CDG: 76.2 mPax Industrial cooperation Skopje, Ohrid: 2.7 mPax Strategic partner TAV 15%) Tbilisi (80%), Batumi (76%): Paris-Orly: 31.9 mPax 3.4 mPax Concession operator 4.3 mPax Owner and operator Operator and partner Concession operator Turkey 83.3 mPax Istanbul Ataturki (1) (100%) Antalya (49%), Ankara (100%), Izmir (100%) Gazipasa (100%), Bodrum (100%) Concession operator ADP Airports Amman – Jordan (51%) TAV Airports 8.9 mPax Management contract TAV + ADP Strategic partner Heraklion - Crete (22%) Concession operator Conakry (29%) - Guinea 0.6 mPax Operator Santiago de Chile(45%) - Chile Tunisia (67%) Madagascar (35%) Jeddah (Terminal Hajj) – Mauricius (10%) Medinah - Saudi Arabia (33%) 24.6 mPax Enfidha,Monastir: 3.0 mPax Antananarivo, Nosy Be: 1.3 mPax 3.9 mPax Saudi Arabia (5%) 8.4 mPax Concession operator Concession operator Concession operator Operator 6.7 mPax Concession operator Strategic Partners Management contract 1) On 6 April 2019, all commercial flights of Istanbul Atatürk were transferred to the new Istanbul airport, see the press release from 8 April 2019 2) FY 2019: Fiscal year (1st April 2018 – 31st March 2019) 4
About GMR Airport 4 th largest private airport operator globally – Handled 1 102 Mn pax 4 Portfolio of 7 airports in 3 countries (India, Philippines & Greece) Pax capacity - 94 mn operational - 89 mn under development / highest bidder High quality airport land parcels spanning 2,985 acres Consistently maintained high ASQ 2 ratings – Delhi Airport 3 #1 Integrated Platform – Engineering, Duty Free, Car Park, Cargo etc. 1) For the Year FY19, 2) Airport Service Quality, 3) For 2018 5
GMR’s 7 World Class Airport Portfolio : A Snapshot DIAL, New Delhi, India Nagpur, India Bhogapuram Current PAX (FY19) • Strategically • Marquee asset of • Winter capital of (mm) 303 — 2.8 1.9/4 6 69.2 66/119 located on East national importance Maharashtra DOM PAX CAGR Coast of Andhra 606 — INT • Gateway to India — Catering to • Fast emerging as Pradesh FY14 – 19 17.3% 14.49% one of the largest urban a major IT / ITES, 13.4% 45.99% Partnerships in Businesses • ~15 year Partnerships in Businesses conglomerates in the world logistics, and Cargo CAGR moratorium on aerospace hub 100% FY14 – 19 • Ranked 1 st in the world by ACl 3 in revenue share 11.3% 99.99% along with a major 11.5% 64.0% 40 mm+ category competing with manufacturing base Current/Max Capacity lncheon (South Korea), Changi (MPPA) 5 (Singapore) in 2017 ASQ awards Revenue Share (%) Revenue per Pax GAL Stake (%) Crete DIAL Nagpur Bhogapuram MOPA Cebu GHIAL Crete, Greece GHIAL, Hyderabad, India MOPA, Goa, India Cebu, Philippines • Ranked 1 st by • Important Tourist • Goa is India's • Vital international 15 2 21.4 7.7 2 /33 11.4 Gateway ACl 3 4 in its ASQ leading gateway to awards for 2017 international Philippines • New airport with tourist destination 21.6% 19.6% • Among fastest higher capacity 36.99% • 2 nd busiest and Partnerships in Businesses replacing 2 nd • Tourist airport growing major fastest growing Partnerships in Businesses 15.8 1 /28.3 Indian airport largest airport in with high airport in Partnerships in Businesses 10.4% Greece currently 100.0% by traffic international Philippines serving 6.9mm passenger traffic Partnerships in Businesses • Poised to • Named “APAC passengers and non-aero become 12/80 Regional Airport potential regional hub 40.0% of the year” by CAPA 3 in 4.0% November 2016 63.0% Source: Company Data; 1) Capacity increased to 15.8 mn, 2) Under-development, 3) ACI: Airport Council International. CAPA: Center for Asia-Pacific Aviation, 4) In 5 to 15mm passengers per annum category, 5) MPPA: Million Passengers per Annum 6
Equity Valuation of GMR Airport (INR bn) 44.8 264.8 220.0 Base Post Money Achievement of Earn-out Total Post Money Valuation Milestones* Valuation** *Linked to achievement of certain agreed operating performance metrics and receipt of certain regulatory clarifications over the next ~5 years; **including Earn-outs on consummation 7
Shareholding Structure Post Transaction GMR Infrastructure Ltd 1 51% 49% 2 GMR Airports Ltd Groupe ADP (GAL) India Outside India 64% 63% Delhi Airport Hyderabad Airport 100% Crete Airport, Goa Airport (DIAL) (GHIAL) Greece 40% Mactan Cebu, 100% Nagpur Airport Philippines Clark Airport, 50% 100% Bhogapuram Airport Philippines Operational EPC Under Development Highest Bidder 1) Direct and Indirect including Employee Welfare Trust 2) GMR Shareholding to undergo change on achievement of Earn-out Milestones 8
Transaction Attractiveness Post Money Valuation: INR 220 Bn Global partnership with Post Money Valuation Attractive Single a major airport operator including Earn Outs: Valuation Investor INR 264.8 Bn Strategic Partnership Leverage partnership to further strengthen market position 9
Investment Merits Creation of world-class Airport Development and Management platform in partnership with strategic airport operator Significant deleveraging at GMR Infrastructure Ltd. using the equity raise o Improved cash-flow and profitability Paves way for value unlocking through demerger of businesses 1 o Transaction entails ease of & flexibility for demerger process Strong partner to capitalise on future growth opportunities 1) subject to corporate & regulatory approvals 10
En route to build Strong Partnership • Combination of expertise to extract more value and create synergies o Leverage Building strong partnerships by leveraging aeronautical and non- Expertise aeronautical expertise through systematic best practices implementation o Sharing knowledge and best practices across airports • Market access for service companies • Route development Strategic • Enhance expertise in operations / smart airport partnership • Retail and passenger experience, IT/Innovation, engineering etc. • Achieving standardized and highest level of passenger experience and quality Hospitality of service Optimise skills in operations, engineering, IT etc. to create global benchmarks 11
Thank You 12
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