#1Creating Highways to Success MBL Creating Highways to Success MBL Infrastructures Limited Investor Presentation February 2017#2Safe Harbor MBL Creating Highways to Success This presentation and the accompanying slides (the "Presentation"), which have been prepared by MBL Infrastructures Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3Table of Contents Business Overview BOT Details Financial Overview Key Highlights & Result Update Way Forward MBL Creating Highways to Success 3#4Business Overview 4#5MBL in a Snapshot.... An Integrated Infrastructure construction company Successfully completed 2 BOT Toll road projects of 114 kms & 18 kms in the state of Madhya Pradesh Bids for NHAI and State projects funded by World Bank or ADB Currently executing more than 25 projects Owns large fleet of construction equipment and has over 1,500 technical and skilled personnel Well diversified orders in hand of ~Rs. 62,435.23 mn MBL Creating Highways to Success NHAI Prequalification for single BOT (Toll) & BOT (Annuity) project upto Rs. 11,057.10 mn and for single Hybrid Annuity Project upto Rs. 11,871.30 mn as per result of RFAQ-2016. 5#6Business Overview EPC & O&M Largest contributor to construction sector Momentum of investments picked- up BOT Highways Railways & Metro Building of High Speed Rail Corridors, ROBS, RUBS Civil Work like Viaduct, Depots etc. Railways & Metro MBL Industrials & Others Infrastructure Urban Infrastructure MBL Creating Highways to Success Housing Infrastructure Rising population has intensified the focus on development of urban infrastructure Other Urban Infrastructure Industrial based construction investments to be USD 74 bn ~Rs. 228 bn Investments over 2014-22 on IWT Industrial Infrastructure Inland Water Transport IWT Current Exposure Areas to Explore 6#7Evolution MBL Creating Highways to Success Awarded first batch of contracts for the north-south-east-west corridor project Awarded Industrial Infrastructure Development Project by SAIL / IISCO Listed on the Bombay Stock Exchange and National Stock Exchange QIP of Rs. 1,170 mln in Dec. 2014 Entered MoU with Piacentini Costruzioni, Italy Bagged 2 HAM projects of Rs. 2,126 crs 1995 1999 2005 2008 2007 2010 2012 2014 2015 2016 2017 Incorporated as Maheshwari Brothers Limited Awarded contract for maintenance of Ring Road and Outer Ring Road in Delhi BOT road project of Seoni-Balaghat- Rajegaon in the state of Madhya Pradesh made operational Reached annual revenues of Rs 1,000 cr Awarded BOT road project of Bikaner- Suratgarh section of NH-15 BOT Road Project of Waraseoni- Lalbarra made operational Issue of Bonus Shares in ratio of 1:1 Bagged HAM project of Rs. 526 crs 7#8Key Strengths MBL Creating Highways to Success Increasing and diversified Order Book ■ Orders in hand of Rs. 62,435.23 mn ■ Diversified projects from government and government agencies - includes roads, highways, railways, buildings Large fleet of owned machineries ■ Own a large fleet of construction equipment such as hot mix plants, sensor pavers, concrete plants & pumps, cranes, etc, which lower cost of execution, enhances technical qualification and reduces time for mobilization Excellent execution capabilities and technical expertise ■ With over 20 years of experience, MBL has built a reputation for efficient and timely completion of projects ■ Continuous expansion in our capacity in terms of experience, technical know-how and financial resources Strong Financial Performance ■ Revenues have expanded at a CAGR of 24% from FY 2010-16 whereas PAT has expanded at a CAGR of 16% Track record of winning government contracts as a prime contractor ■ Our business model allows us to enter into competitive bidding, where we demonstrate financial and technical capabilities required to win government contracts as primary contractor Early Mover Advantage ■ Awarded a contract in North South East West Corridor from NHAI under NHDP Phase I in 1999 ■ Awarded the comprehensive maintenance of the Ring Road and Outer Ring Road in Delhi in 2005 Integrated Business Model ■ An experienced team and a fleet of owned equipment allows to integrate the business model ■ Various divisions for Bitumen, Concrete, Quarrying, BOT projects, etc 80#9MBL Creating Highways to Success Order Book Segments ▪ Roads & Highways ■ Construction ■ Operations & Maintenance ■ Housing & Buildings Railways incl. Metro Others Geographies ■ North & West ■New Delhi / Haryana/ UP/UK# ■ Rajasthan ▪ Central ■ Madhya Pradesh 2% 4% East (incl. others) ■Bihar/Assam/Chattisgarh ■ West Bengal / Others Clientele NHAI & MORTH State Projects ■ Others 3% 19% 8% 86% 18% 17% # Uttarakhand 65% Total Orders in hand ~Rs. 62,435.23 mn 79% 9#10Key Projects MBL Creating Highways to Success Project: Four laning of NSEW corridor of Agra Dholpur section of NH-3 Project: Maintenance contract of New Delhi Ring Road from PWD MBL New Delhi Rly. S BULLEUS Project: Strengthening, widening, up gradation, operation and maintenance of Seoni-Balaghat road MPRDC Project: Widening & strengthening of existing National Highway NH-37 from Guwahati to Sonapur Hybrid Annuity Project: Four Laning of Chutmalpur-Ganeshpur section of NH-72A & Roorkee- Chutmalpur-Gagalheri section on NH-73 in the State of Uttarakhand and Uttar Pradesh under NHDP-IV Hybrid Annuity Project: Four Laning of Gagalheri-Saharanpur-Yamunanagar (UP/Haryana Border) section of NH-73 in the State of Uttar Pradesh under NHDP-IV Hybrid Annuity Project: Four laning of Tarsod to Fagne (Package -II B) Section of NH-6 from km 422.700 to km 510.00 (design length 87.30 km) in the State of Maharashtra under NHDP Phase - IV on Hybrid Annuity Mode 10 10#11Dynamic Board of Independent Directors MBL Creating Highways to Success Name Role Background Mr. Anjanee CMD A Chartered Accountant having 20 years of experience in the infrastructure industry Kumar Lakhotia Mr. Ashwini Kumar Singh Mr. Bhagwan Singh Duggal Ms. Sunita Palita Independent Director Electrical engineer from Jadavpur University, Fellow member of Institute of Engineers, Indian Council of Arbitration, All India Management Association and National HRD 20+ years experience in SAIL and Essar Steel Independent Director • Architecture from School of Planning and Architecture-Delhi, Post Graduate Diploma in Housing, Planning & Building, Netherlands Associated with planning and design, modernization & restorations marquee government Independent Director • PG in Anthropology from Miranda House, Delhi University and a PG Diploma in Journalism from Indian Institute of Mass Communication, New Delhi Has held academic positions with the World Food Programme and UNICEF on Child Rights Issues 11#12Strong Relationships भाराराप्रा HAL National Highways Authority of India (NHAI) सत्यमेव जयते PWD Public Works Department (PWD), (ADB & WORLD BANK) MBL Creating Highways to Success Ministry of road Transport & Highways (MORTH) N Delhi Metro Rail Corporation (DMRC) ........and Others 12 12#13BOT Portfolio 13#14Integrated Business Model MBL Creating Highways to Success Toll Collection and O&M In-house O&M Traffic Estimation In-depth knowledge, database built over last 12-13 years Full Value Captured in a BOT Project Equipment Bank Includes concrete plants, stone crushers, hot-mix plants among other equipments In-house Construction Ensures time and cost control Design & Engineering In-house design team ensures quality 14#15Summary of BOT Projects MBL Creating Highways to Success Project Project Stake State Client Length Concession Project Period Type Status COD/ Expected CoD Seoni-Balaghat-Rajegaon 100% MP State Project 114.0 15 yrs Toll Operational February 2008 Waraseoni-Lalbarra Road 100% MP State Project 18.3 15 yrs Toll + Annuity Operational August 2015 Bikaner-Suratgarh 99.89% Rajasthan State Project 172.4 16 yrs Toll Under Construction March 2017 Gagalheri-Saharanpur- Yamunanagar 100% UP/Haryana Border NHAI 51.5 17 yrs HAM Under Implementation Agreement signed on 27.05.2016 Chutmalpur-Ganeshpur & Roorkee- Chutmalpur- Gagalheri 100% Uttarakhand & Uttar Pradesh NHAI 53.3 17 yrs HAM Under Implementation Agreement signed on 27.05.2016 Tarsod to Fagne 51% Maharashtra NHAI 87.3 15 yrs HAM Under Implementation 15#16Operational BOT Projects MBL Creating Highways to Success 1 Seoni-Balaghat-Rajegaon (Operational) ■SH 26 & 11 connecting Seoni, Balaghat & Rajegaon ■ Stretch of 114 kms operational since February, 2008 I 44 1 Seoni, Madhya Pradesh O | Chand AH43 Bhander Range Forest Pench National Park Rechna Dry Deciduous Forest Baihar Ukwa Lalbarra 2 Balaghat Hill-Forest Range Balaghat Waraseoni, Madhya Pradesh Tirodi Chicholi Chicholi Lanji OGondia, Maharashtra | Khamari Tirora 2 Waraseoni-Lalbarra Road (Operational) ■Connecting Waraseoni and Lalbarra ■Stretch of 18.3 kms, operational since August 2015 16#17Bikaner-Suratgarh Project فیصل آباد O Punjab Shimla Multan CHANDIGARH tan UTTA O Hanumangarh, Rajasthan Suratgarh, Rajasthan O HARYANA at O Bikaner, Rajasthan O ONew Dell Agra RAJASTHAN O Jaipur, Rajasthan OAjmer, Rajasthan Udaipur Mount Abuo Ahmedabad Kota Indore Map showing project road matrix MADHYA PRADESH Jha MBL Creating Highways to Success 17#18Hybrid Annuity Model (HAM) Projects YAMUNA NAGAR End of Project Road (NH73) Existing Km 71+640 Design Ch. 86+855 Yamuna River SH 6 NH 73 Saharanpur 57 Π C B Start of Project Road (NH73) Existing Km 33+000 Design Ch. 35+400 Sayy d zra NH72A Chutmalpur Bypass Km 27+200 NH 73 Roorkee Bypass MBL Creating Highways to Success End of Project Road (NH72A) Existing Km 16+000 Design Ch. 17+900 B0 NH 58 N Imagery Date: 12/21/2015 L Saharanpur Bypass SH 57 15.7 km Start of Roorkee Bypass & Project SH 59 nag Existing Km 167+800 of NH58 mage Design Ch. 0+000 of NH73 B 43 R 759618.18 m E 3319089.97 m N elev 284 m Roorkee NH 58 Google earth B Eye alt 67 75 km 1- Four Laning of Gagalheri-Saharanpur-Yamunanagar (UP/Haryana Border) section of NH-73 in the State of Uttar Pradesh under NHDP-IV DBOT Hybrid Annuity Mode:- Rs. 11,840 Million 2- Four - Laning of Chutmalpur-Ganeshpur Section on NH-72A & Roorkee - Chutmalpur-Gagalheri Section on NH-73 in the state of Uttarakhand and Uttar Pradesh under NHDP-IV DBOT Hybrid Annuity Mode:- Rs. 9,420 Million 3- Four laning of Tarsod to Fagne (Package -II B) Section of NH-6 from km 422.700 to km 510.00 (design length 87.30 km) in the State of Maharashtra under NHDP Phase - IV on Hybrid Annuity Mode :- Rs. 5,207 Million 18#19Financial Overview 19#20Consolidated Financial Snapshot MBL Creating Highways to Success Revenue 24% 23,424 EBITDA 18% 19,618 17,663 12,653 13,554 Rs. 23,424mn 10,016 2,523 2,369 1,882 1,679 1,365 1,434 Rs.2,523 mn 914 6,370 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 PAT 883 16% 816 Cash PAT 18% 770 725 617 567 1,215 1,018 910 840 710 680 Rs.883 mn 370 Rs.1,215 mn 440 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 D/E ratio* 1.91 1.70 1.66 1.69 1.35 1.00 1.91 x 0.79 FY10 FY11 FY12 FY13 FY14 FY15 FY16 * - Equity Includes Minority Interest CAGR ^ - Fixed Assets excludes Assets under development 20 20#21Standalone Financial Snapshot MBL Creating Highways to Success Revenue 24% 23,143 EBITDA 18% 19,485 17,537 12,514 13,429 Rs. 23,143mn 9,915 2,247 2,251 1,792 1,557 1,275 1,314 Rs.2,251 mn 836 6,289 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1,023 956 849 787 666 624 Call 850 PAT 16% 802 Cash PAT 18% 751 708 603 553 Rs.850 mn 342 Rs.1,023 mn 385 D/E ratio 1.21 x FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1.20 1.21 1.09 1.10 Fixed Asset Turnover 8.79 8.77 8.20 8.21 7.69 1.04 6.84 0.84 5.49 0.72 FY10 FY11 FY12 FY13 FY14 FY15 FY16 8.77 x CAGR FY10 FY11 FY12 FY13 FY14 FY15 FY16 24 21#22Annual Profit & Loss MBL Creating Highways to Success FY16 FY15 Rs. mn EPC BOT Consol. EPC BOT Consol. REVENUE 23,143 311 23,424 19,485 192 19,618 EBITDA 2,251 273 2,523 2,247 126 2,369 EBITDA margin 9.73% 87.56% 10.77% 11.5% 65.5% 12.08% Other Income 58 3 62 28 3 31 Interest 1,056 74 1,130 953 58 1,011 Depreciation 172 159 332 154 48 202 PBT 1,080 43 1,123 1,168 20 1,188 Tax 230 10 240 366 5 372 Profit After Tax 850 33 883 802 14 816 PAT Margin 3.67% 10.53% 3.77% 4.1% 7.5% 4.16% Less: Minority Int. Profit / (Loss) 0 0 0 0 0 0 Add: Associates Profit/ (Loss) 0 0 0 0 0 0 PAT after MI & Asso. Profit 850 33 883 802 14 816 Cash Profit 1,023 192 1,215 956 62 1,018 22#23Consolidated Balance Sheet MBL Creating Highways to Success Rs. mn Mar-16 Mar-15 Shareholder's Fund 7,372.99 6,564.87 Share capital 414.55 Reserves & Surplus 6,958.44 207.27 6,357.60 Share Application Money Minority Interest Non-current liabilities 0.18 6,771.26 0.18 5,933.13 Long term borrowings 6,174.42 4,724.98 Other non-current liabilities 596.84 1,208.15 Current liabilities 12,163.91 9,687.39 Short term borrowings 7,368.90 5,900.06 Other current liabilities 4,795.01 3,787.33 TOTAL EQUITIES & LIABILITIES 26,308.34 22,185.57 Non-current assets 11,520.07 8,421.84 Fixed assets 10,685.48 7,578.00 Other Non-current assets 834.59 843.84 Current assets 14,788.27 13,763.73 Current Investment Inventories Trade receivables Cash and bank balances Other current assets TOTAL ASSETS 7,378.20 6,118.14 373.11 918.82 8,105.39 3,950.19 759.94 948.21 26,308.34 22,185.57 23#24Way Forward 24#25New Avenues - Inland Water Transport · Memorandum of Understanding MBL MBL Infrastructures Ltd. PIACENTINI COSTRUZIONI Piacentini Costruzioni is an Italian company engaged in the construction and civil engineering business with expertise in major and complex maritime works. MBL is looking to enter into civil engineering projects for construction of ports, harbour/ marine structures, water supply/ sanitation, bridges, viaducts and elevated structures and has signed an MoU with Piacentini for the same. • Prospects MBL Creating Highways to Success Inland Water Transport (IWT) offers a cost effective, environment friendly and fuel efficient mode, specially for bulk cargo, hazardous goods and over dimensional cargo - so vital for industrial development. • Currently, inland waterways in India are functioning in an organised manner only in a few areas, such as Goa, Assam, West Bengal and Mumbai, apart from Ganga, Brahamaputra and Champakara and Udyogmandal canals. • Development of inland waterways can improve vastly the capacity for the transportation of goods. Announced Investments in Inland Waterways: • A project on the river Ganga called 'Jal Marg Vikas' (National Waterways-l) will be developed between Allahabad and Haldia to cover a distance of 1,620 kms, which will enable commercial navigation of at least 1,500 tonne vessels. The project will be completed over a period of six years at an estimated cost of Rs 4,200 crore. (Source: Budget Speech 2014-15, Finance Minister; Inland Waterways Authority of India, Annual Report 2012) 25 25#26Differentiating Factors MBL Creating Highways to Success 02 02 10 04 01 03 Sufficient investments of Rs. 1,879.03 Million in Fixed Assets as on 31st March 2016 ■ Majority investments in Multiple use equipment along with non-common equipment Optimized mix of critical and non critical equipments Better Asset Turnover ■ Excellent track record, will enhance margins Well Balanced Financial Model ■Low long term gearing ■ Balanced investment in Plant & Machinery, BOT projects & Net Margin for working capital ■ Good tie ups for fund based and non fund based working capital ■ Long term relationship with Banks Sub-contracting non-critical work ■ Helps us keep Balance Sheet Asset Light 26#27Certifications & Awards MBL Creating Highways to Success ☐ Certifications ■ ISO 9001:2008 ☐ • In recognition of the Organization's Quality Management System ■ ISO 14001:2004 In recognition of the Organization's Environment Management System OHSAS 18001:2007 In recognition of the Organization's Health and Safety Management System Awards 2nd Fastest Growing Construction Company (Medium Category) in India and India's Top Challenger at the 14th & 13th Construction World Global Awards MBL has been recognized amongst the Best Infrastructure Brands by Economic Times in 2016 and is the Winner of India's No. 1 Brand Awards 2016 in India's Best Infrastructures Company Category awarded by International Brand Consulting Corporation, USA 3rd Fastest Growing Construction Company (Medium Category) at 10th, 11th and 12th Annual Construction World Global Awards MBL Infrastructures Ltd. has been featured in Dun & Bradstreet's India's Leading Infrastructure Companies 2016 27#28For further information, please contact: Company: MBL Infrastructures Ltd CIN: L27109WB1995PLC073700 Mr. Ravindra Jain (Company Secretary) [email protected]/[email protected] www.mblinfra.com