Result Update | May 2018 BHARAT ROAD NETWORK LIMITED Corporate Presentation I January 2020

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Contents

Industry Overview 01

BRNL – Company Overview 02

Financial Performance 04

Shree Jagannath Expressway Pvt. Ltd.

Project Portfolio 03

India has world’s 2nd largest road network aggregating ~5.2 million km of roads carrying about 86% of country’s passenger traffic and close to 65% of freight traffic.

Government has announced US$ 106.7 bn (Rs 7 lakh crore) worth investment to develop 83,677 km highways in 5 years which includes the Bharatmala project of around

35,000 km with an investment of US$ 82.5 bn (Rs 5.35 lakh crore)

Government focus on reviving infrastructure growth through introduction of HAM and TOT augurs well for the sector.

Capacity constraints of the railways has led to the share of roads in the primary freight pie increasing from an ~58% (in BTKM) in 2009-10 to ~65% in 2015-16

Road freight traffic expected to grow at 7-9% CAGR, to 2,450 BTKM by FY21E

Increasing Freight

Movement Pick up in Project Award

Focus on National Highway

Development

Source: CRISIL Research; E: Estimates P: Projected

797210098

15948 17055

5470

0

5000

10000

15000

20000

FY15 FY16 FY17 FY18 FY19

km

Award of NHs/ Road projects

Source: http://www.nhai.org/projectawarded201617.asp

Due to elections, the order placements tapered down to 2500km in FY19 from 7397 km in FY18

EPC(~75%) dominated project awards in FY19 followed by HAM(25%)

The trend was set to change in FY20 with a mix of EPC, HAM and BOT but remain muted

Investments in National Highways expected to increase to INR 3.8 trillion during FY17-21 and that in state roads expected to increase to INR 4.4 trillion during the same period

Source: CRISIL Research; P: Projected

Note: 1 USD = Rs 64.86

India : Growing economy with strong Infrastructure impetus… …with significant focus on Roads

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Mammoth investment opportunity in Highway sector on anvil

Road Construction

Total Capex

34,800 km

US$ 106.7 bn (Rs 6.92 lakh crore)

83,677 km

US$ 82.5 bn (Rs 5.35 lakh crore)

BharatMala Pariyojana Funding: US$ 32.2 bn (Rs 2.09 lakh cr) from Market, US$ 16.3 bn (Rs 1.06 lakh cr) from Private Investments and US$ 33.8 bn (Rs 2.19 lakh cr) from

CRF/ToT/Toll. Asset Monetization: Government plans to raise Rs 34,000 cr) through monetisation of 82 operating highways under ToT. NHAI has tendered out 9 NH stretches of

680.64 km with potential monetization of US$ 1.0 bn (Rs 6,258 cr). The Government of India has announced plans to raise funds by monetising more than 6,000km of highways before 2024.

Rural roads-PMGSY Spending of US$ 13.6 bn (Rs. 88,185 cr) envisaged under the PMGSY, by central and state government, to construct 1,09,302 km of rural roads over next 3

years. In addition, roads worth US$ 1.8 bn (Rs 11,725 cr) for 5,411 km of upgradation and new roads in 44 LWE districts to be completed by 2019-20.

Expected Completion by 2021-22

Total Highway Projects BharatMala

PMGSY: Pradhan Mantri Gram Sadak Yojana; CRF: Central Road Fund; TOT: Toll-Operate-Transfer; LWE: Left Wing Extremism

The Economic Survey of India 2020 estimated an investment requirement of Rs 19.63 lakh crore investment by 2024-25 in Roads and Highways Sector.

The Budge for 2020-21 sees enhanced allocation for Ministry of Road Transport and Highways at Rs 91,823.22 crore

Note: 1 USD = Rs 64.86

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Opportunity Landscape

Secondary Market Growth Drivers

Components Length (km)

Estimated Outlay (US$ bn)

Bharatmala (Ph I) 34,800 82.56

Other projects 48,877 24.27

TOTAL 83,677 106.84

Our Focus Areas under public private partnership (PPP) Business Opportunity

Primary Market

Build Operate Transfer (Toll)

Healthy growth in traffic and expressway expected

to spurt growth

Hybrid Annuity Mode Around 53% projects

awarded under HAM in FY17

Toll Operate Transfer Rs 356 bn (US$ 5.24

billion) estimated from 75 operational NH

projects identified for Bidding

Secondary Market

Distressed Assets with Lenders

Looking for substitution for stressed assets with

sponsors with strong Balance Sheet

BOT/HAM Assets of EPC Contractors

looking for exit opportunities from BOT to deleverage balance

sheet.

Stressed Sponsors looking for Debt

Paring Exploring exit policy

for debt-stressed operators for toll roads.

• Estimated Market Size : Out of ~240 road projects facing statutory/financial problems, M&A opportunity for around 88 operational National Highway projects totaling ~7000km with estimated project cost of US$ ~11bn and median operational track record of 4 years

• Regulatory Framework Aiding Growth : Relaxation of Exit Policy aided sale of around 20 assets of ~US$1.9 bn monetised over last 2-3 years vis-à-vis asset sale of ~US$ 1.08bn in preceding 5 years

Primary Market Growth Drivers

5 Source Crisil Report

Note: 1 USD = Rs 64.86

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BRNL – Company Overview

Mahakaleshwar Tollways Pvt Ltd.

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BRNL: Highway Concession and Contracting Company

India’s unique pure play BOT player

Existing Portfolio of 6 BOT projects having 16 years of balance Concession period

Spread across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha

Annual Toll Collection ~Rs. 6,236Mn

6 BOT projects

Pure Play BOT Player

Diversified portfolio

Toll Collection

Solapur Tollways Pvt. Ltd.

Experienced Board play a key role in providing strategic oversight and guidance

Former Director, Ministry of Defence and Former Deputy Secretary, Ministry of Home Affairs. Former Advisor for Infrastructure Development to the State of Jammu &Kashmir Former CEO of the Mohali Campus and Deputy Dean of the Indian School of Business M.Sc (Physics), M.B.A. Masters in public administration from Harvard University

Pradeep Singh, IAS Independent Director

More than 2 decades of experience in infrastructure asset management, project development, project implementation, private equity and M&A

B.Com, Chartered Accountant

Bajrang Kumar Choudhary Managing Director

Served at both Central and State Government in senior positions for 34 years Former member of the Indian Administrative Service of West Bengal Cadre Degree in Master of Philosophy and Doctorate in History.

Dr. Tuk Tuk Ghosh Kumar, IAS Independent Director

… Guided by Independent Board of Directors

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Fellow Member of the Institute of Chartered Accountant of India (ICAI) and Mentor & Adviser to Chancellor, Sister Nivedita University, Kolkata.

Over 47 years of experience in advising industry and academia in various capacities

Prof. Santanu Ray Independent Director

Unique Platform for Growth through Aggregation

Acquire Cash Generating Assets (Organic & Inorganic Growth)

Growth Platform Yield Platform

Yield Income Increased Cash Flow

Exit Assets by taking advantage of yield arbitrage

Additional yield opportunity Ramping total yield

Push Assets to Yield Platform

Formulate a growth generating platform by way of acquisition of cash generating assets.

There exists arbitrage opportunity whereby assets with decent yield and long residual period can be churned and monetized by pushing them to yield platform to result in a

decent upside in total yield.

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Key Value drivers

Asset Management Skillset Coupled with Access to Capital • Execution experience covering almost 5400 lane km

• Ability to create value through asset aggregation platform

• Under leverage Balance Sheet, Immense Opportunity to raise capital for growth

Access to Market • Access to rich pool of contractors for faster project

implementation

• Strong pipeline of assets for acquisition leveraging existing client base of EPC contractors and domestic lenders.

Financial Engineering Strong Debt Syndication Team for managing interest cost and tenor

elongation Strong focus on innovative financing structures such as Bond

Issuance

Independent Board with Rich Industry Experience • Experienced Board play a key role in providing strategic oversight and

guidance

Experienced and Professional Team Qualified & skilled employee base with strong asset

management, execution capabilities and extensive industry experience

Leveraging Technology for Business Growth • Explore Innovative technology solutions

• In-house experienced Technical team instrumental in introducing technology across tolling operations

• Invest in cutting-edge technologies to strengthen toll collection efficiency and increase user convenience

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3

4

5

6

XXXX’s Value

Proposition

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Diversified Project Portfolio

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$ Acquisition of Balance 26% is under progress

Existing BOT Projects (As on Mar’19) State NH/SH Lane (Km) Project Cost (Rs.

Mn) BRNL stake

(%) Shree Jagannath Expressways (SJEPL) Odisha NH-5 401 19,636 40%

Ghaziabad Aligarh Expressway (GAEPL) U.P NH-91 505 19,383 39%

Guruvayoor Infrastructure (GIPL) Kerala NH-47 260 7,212 100%$

Kurukshetra Expressway (KEPL) Haryana NH-71 333 10,467 49%

Mahakaleshwar Tollways (MTPL) M.P SH-27 196 3,304 48%

Solapur Tollways (STPL) Maharashtra NH-9 400 8,826 100%

2,095 68,828

6 PROJECTS OF INR 68 bn AGGREGATING TO TOTAL 2,095 LANE KM

Project Portfolio

Mahakaleshwar Tollways Pvt Ltd., Madhya Pradesh

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Diversified presence across high growth industrial corridors

Cochin

Chennai Bengaluru

Pune

Nashik

Indore Bhopal Ahmedabad

Delhi

Ludhiana

Bawal

Jodhpur

Udaipur

Jaipur Lucknow

Kanpur Varanasi

Agra

Mumbai

Bijapur

Mangaluru

Hospet

Bhubaneswar

Solapur

Ghaziabad Aligarh

Ujjain Dewas

Rohtak

Angamali Thrissur

Balasore

Jalandhar

Kanyakumari

Coimbatore

Thiruvanthapuram

Salem

Chandikhol

Allahabad

Asansol Kolkata Kharagpur

BRNL Road Assets

National Highways

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2

3

4

5

6

Chittagong

Lahore

Hyderabad Vijayawada Macihlipatnam

Sl. No. Project Name/SPV State

Description (Project on NH/SH=A; Project connecting

NH=B)

Rohtak – Bawal/KEPL Haryana A= NH 71 B= NH 8

Indore – Ujjain/MTPL Madhya Pradesh A= SH 27 B= NH 3 & NH59

Thrissur – Angamali/ GIPL Kerala A= NH 544

Ghaziabad- Aligarh/GAEPL Uttar Pradesh A= NH 91

B= NH 3

Chandikhol- Bhubaneswar/SJEPL Odisha A= NH 16

Solapur Karnataka Border/STPL Maharashtra A= NH 9

1N

2S

3N

4N

5N

6N

Project Snapshot …

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Asset details SJEPL GAEPL GIPL KEPL MTPL STPL

Asse

t det

ails

State Odisha U.P. Kerala Haryana M.P Maharashtra

NH/SH no. NH-5 NH-91 NH-47 NH-71 SH-27 NH-9

BRNL stake 40.00% 39.00% 100%$ 49.00% 48.00% 100.00%

Other shareholders group Simplex -34%; Galfar -26%

PNC -35%; Galfar -26%

N.A JMC and others -51% Varaha -13.26% Galfar & Others -

38.74% N.A.

Lane kms 401 505 260 333 196 400

Con

cess

ion

term

s

Appointed date 14-Dec-11 25-Feb-11 22-Sep-06 10-May-11 26-May-09 3-Jun-14

First Provisional COD 12-Jan-17 23-Jun-15 4-Dec-11 24-Aug-13 19-Nov-10 23-Jan-20*

Concession period 26years 24years 21yrs 9mths 28years 25years 25years

Residual life (as of Dec’19) 17yrs 11mnths 15yrs 02mths 8yrs 5mths 19yrs 4mth 14yrs 5mths 19yrs 5mths

Proj

ect f

inan

cial

s

(Rs.

mn)

- As

on

Dec

’19

Project Cost 19,636 19,383 7,212 10,467 3,304 8,826.20##

Grant 1,824 3,032 - - - 0.00

Debt o/s 10,483 8,931 2,115 5,420 1,610 5,056

Sponsors Fund 3,240 8,382 4,902 5,818 2,647 6,424

#Estimated project cost of construction as per STPL loan facility $Current holding at 73.99%; Acquisition of Balance is under progress

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SJEPL - Shree Jagannath Expressways Pvt. Limited

#1 : 6 Laning of Chandikhole Bhubaneswar Section of NH-16 Link for Map view

Project Snapshot

Located on the NH-5 between Chandikhol and Bhubaneswar

End point of the project a major intersection, NH-200 & NH-5A cross NH-16

NH-200 connects Daiteri mines and then runs towards Raipur, proposed smart cities

Development activity

Expansion of Paradeep port; ramp up cargo handling capacity to 330 mn tonne

Capacity expansion plan in Kalinga Nagar SEZ, major steel cluster near Chandikhol

Revival in Iron ore cargo volume at Paradeep port to 8.51 MT vs 2.27 MT a year ago

Info valley, IT SEZ with a township of 500 acres land in western parts of Bhubaneswar

Bhubaneswar selected for smart city project with a proposal of over USD 708mn

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GAEPL - Ghaziabad Aligarh Expressways Pvt. Ltd.

#2 : 4/6 Laning of Ghaziabad-Aligarh Section of NH – 91 Link for Map view

Project Snapshot Located on the NH-91, connects Ghaziabad to Aligarh in UP

Ghaziabad is hub of engineering, electronics, and leather and textile goods

Aligarh is an important business centre of Uttar Pradesh and is a big centre of zinc die casting

Development activity Ghaziabad & Aligarh to be developed as Smart Cities and are also identified under

AMRUT

Govt is developing integrated industrial township in Greater Noida, come up by end of 2019

Delhi-Ghaziabad-Meerut Rapid Rail Transit Corridor project implemented by National Capital Region Transport Corporation Limited (NCRTC)

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GIPL - Guruvayoor Infrastructure Pvt. Ltd.

#3 : 4 Laning of Thrissur – Angamali, NH544 Link for Map view

Project Snapshot GIPL Project Road is a part of NH-47 which originates at Kanyakumari and ends at Salem

Connects Kochi, Thrissur and Coimbatore; runs in proximity to Cochin Refinery & Cochin Port

Development activity Export bound traffic from key regions like Salem, Coimbatore, Kozhikode etc

Kochi smart city, focusing on IT/ITES/allied services, is likely to be completed by 2020

BPCL Kochi refinery is expected to expand its capacity from 9.5 MT to 15.5 MT

Proposed KINFRA Gem and Jewellery park to be set up in 10 acres of land at Puzhakkalpadam, Thrissur District

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KEPL - Kurukshetra Expressway Private limited

#4 : 4 Laning of Rohtak-Bawal section of NH-71

Link for Map view

Project Snapshot Part of NH-71, starts atJalandhar & ends NH-8 near Bawal; connects Moga, Sangrur &

Rohtak

Development activity MBIR, investment region selected in 1st phase of DMIC, is serviced by the KEPL Project road

Proposed IMT project in Rohtak, envisage to have campuses for large industries, like Maruti

An international cargo airport and aircraft maintenance hub is proposed in Rohtak, Haryana

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MTPL - Mahakaleshwar Tollways Private Limited

#5 : 4 Laning of Indore – Ujjain Road on SH-27 Link for Map view

Project Snapshot

Connects Rajasthan in north & Maharashtra in south, cities Ujjain, Indore & Pitampur

Indore, largest and most populous city in Madhya Pradesh qualified for Smart Cities Mission

SEZ Indore, a busy hub, is serviced by the MTPL Project Road

Development activity Under UIG program of JNNURM, approved 5 projects includes cities like Bhopal, Indore &

Ujjain

Construction of IT parks in 4 major cities of the state - Indore, Gwalior, Bhopal and Jabalpur

9 formal approved SEZs; proposed to be set up in MP includes IT/ITES SEZ at Indore

Plans to upgrade existing apparel clusters at Indore & Jabalpur; develop 2nd textile park

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STPL - Solapur Tollways Private Limited

#6 : 4 Laning of Solapur Maharashtra/Karnataka Border Section of NH9 Link for Map view

Project Snapshot

Connects west & east passing major cities such as Vijayawada, Hyderabad, Pune

NH-9 & Mumbai-Pune Exp Highway intersect at Pune

Provide connectivity to Mumbai and nearby ports

Solapur District is home to weaving loom industry and other manufacturing industries

Development activity

Solapur is shortlisted for the smart city project among 10 cities of Maharashtra

State govt proposed enhancement of airports (Solapur, Shirdi, Chandrapur, etc)

Development of Solapur Pune bypass road will boost the state’s infrastructure

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Financial Performance

Operating Assets Performance- SPV at100%

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* Lower EBITDA in GIPL due to provision of Negative grant of Rs. 400 mn.

Rs. Mn

Particulars FY19 FY18

GAEPL GIPL KEPL MTPL SJEPL TOTAL GAEPL GIPL KEPL MTPL SJEPL TOTAL

Total Revenue 2,376 1,426 986 342 2,074 7,204

2,177 1,444 1,090 272 2,071 7,054

Toll Revenue 2,104 1,349 908 314 1,562 6,237 1,934 1,343 944 262 1,496 5,979

EBITDA 1,938 791 740 237 1,570 5,276 1,857 814 738 209 1,539 5,157

EBITDA % 82% 55%* 75% 69% 76% 85% 56%* 68% 77% 74%

Finance Cost 1,461 651 1,009 224 1,273 4,618 1,606 1,024 1,069 210 1,368 5,277

Toll collection Trend

* Includes Demonetization claims from NHAI 23 * Includes Demonitisation claims from NHAI , ** There is revenue loss of 15 days of Rs. 4.94 cr. in GIPL due to flood in Aug’18

Rs. Mn Project SJEPL - Shree Jagannath Expressways Pvt. Limited

Period FY16 FY17 FY18 FY19 FY20 YoY Growth

Q1 203 230 356 393 418 6% Q2 197 226 368 376 440 17% Q3 209 211 * 354 390 443 14% Q4 230 298 418* 402 Total 839 965 1,496 1,561 1,301 Project GIPL - Guruvayoor Infrastructure Pvt. Limited

Period FY16 FY17 FY18 FY19 FY20 YoY Growth

Q1 288 303 335 354 354 0% Q2 286 304 322 292 346 18% Q3 288 242 321 355 368 4% Q4 295 304 365 * 347 Total 1,157 1,154 1,343 1,348 1,068

• GAEPL - Ghaziabad Aligarh Expressways Pvt. Limited

FY16 FY17 FY18 FY19 FY20 YoY Growth

25 344 478 522 556 6% 306 330 444 504 505 0% 336 366 * 512 546 548 0% 343 440 500 532

1,010 1,480 1,934 2,104 1,609

KEPL - Kurukshetra Expressway Private Limited

FY16 FY17 FY18 FY19 FY20 YoY Growth

183 194 227 252 200 (21%) 178 185 217 * 228 175 (23%) 195 193* 243 236 194 (18%) 175 222 257 192 731 794 944 908 569

Project MTPL - Mahakaleshwar Tollways Private Limited

Period FY16 FY17 FY18 FY19 FY20 YoY Growth

Q1 56 21 61 79 87 10% Q2 51 56 56 76 77 1% Q3 56 43 70 77 79 3% Q4 62 59 75 82 Total 225 178 262 314 243

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Bharat Road Network Limited

Vishwakarma, 86 C Topsia Road (S), Kolkata, West Bengal 700046 Tel No. 033 6602 3226

www.brnl.in

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