Essar Ports LtdEssar Ports Ltd

Annual Results FY2011-12

& Key Highlights

2

Indian Port Industry Performance

FY11 FY12

Non Major Ports 314 369

Major Ports 570 560

570 560

314369

0

100

200

300

400

500

600

700

800

900

1000

Ca

rgo

Ha

nd

led

(M

MT

)

Growth in Indian Port Traffic

Share in FY11

Share in FY12

Growth Rate

Major Ports 64% 60% -2%Non Major Ports 36% 40% 18%

�Major ports volumes declined mainlybecause of lower iron ore export whichhas declined by 30% and less thanexpected growth in coal traffic whichgrew by 8%.

� In the last few months, Governmenthas shown positive inclination towardssorting out the issues related to powersector; this will increase the coalimport through ports. Iron ore export isalso expected to increase withstrengthening of global economy.

�Several BOT projects which wereawarded in last 3-4 years are expectedto be commissioned during the currentfinancial year and next year; this willnot only increase the port capacity butalso improve the efficiency of Indianports as these will be mechanizedfacilities.

884 9295%

3

82.50

67.42 65.75 64.01

56.19 55.71 54.25

43.23 39.00

32.94 31.01

28.11

20.09

14.96 12.23 11.00

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

MM

T

Cargo Handled across top Indian Port Companies in F Y11-12

Cargo Handled across top Indian Port Trusts/Compani es

Major Ports

Private Ports

* Cargo handled at Kandla Port partly includes the cargo handled at Essar’s Vadinar Terminal

Essar Ports: Overview

4

Salaya

Paradip I (Iron ore)

HaziraINDIA

BAY of BENGAL

INDIAN OCEAN

Paradip II (Coal)

Vadinar

Hinterland for Essar Ports

� 16 MTPA Iron Ore Berth at Paradip� 20 MTPA Dry Bulk Terminal at Salaya

� 20 MTPA General Cargo Terminal (expansion) at Hazira

� 14 MTPA Coal Terminal at Paradip� Liquid Storage Terminal (expansion) at

Vadinar

Operational

Under Construction

Under Development

� 3 stand-alone ports on the West Coast and 2 terminals on the East Coast of India

� Presence in strategic locations of east and west coast

� High visibility on revenue with long term Take-or-Pay contracts

� Current capacity of 88 MTPA being scaled up to 158 MTPA by FY 2014. Further scalability possible at most locations

� High operating margins at both the operating ports

� 58 MTPA Liquid Terminal at Vadinar� 30 MTPA Dry Bulk / General Cargo Terminal

at Hazira

5

Essar Ports: Key Highlights

� During the quarter, company suffered loss due to recognition of interest on a CDR facility which was a contingent liability till last period. The one time liability due to this was Rs 235.5 crore

� The company also recognized a deferred tax asset in accordance with AS 22 to the extent of Rs 125.5 crore on unabsorbed tax losses.

� Net one time liability recognized during the quarter is Rs 110.0 crore

� One time en bloc approval received from GMB to handle 1 million ton third party coal at Hazira during monsoon of FY2013

� Essar Ports Board recommends a dividend of 5% of face value of share (Re 0.5 per share) for FY 12, amounting to Rs 20.53 crore

� Economic ownership of Hazira has been increased from 74% to 96%

� Essar Ports has signed a Strategic Alliance Agreement with Port of Antwerp.

� Port of Antwerp investing approx Rs 175 crores through Global Depository Receipts in Essar Ports

Partnership with Port of Antwerp International

6

� Port of Antwerp is the 2nd largest port in Europe and gateway of many European economies. The port handled 187 MMT of cargo in 2011.

� Port of Antwerp International is the international investing arm of Port of Antwerp

� Essar Ports is one of the largest port companies in India

� The company has operational capacity of 88 MMTPA, going up to 158 MMTPA by FY14

� The company has strategically located all weather deep draft port assets on the west and east coasts of India

Port of Antwerp

The Partnership

7

The Partnership:

� Strategic Alliance Agreement signed between Port of Antwerp International and Essar Ports on 30th May 2012.

� Port of Antwerp and Essar Ports will work together in the areas of training and consultancy services, port planning, traffic flow, quality and productivity improvement. Both the companies will mutually assist in volume growth of their businesses.

� As part of the agreement, Port of Antwerp International has invested approx Rs 175 crore in Global Depository Shares (GDS) issued by Essar Ports at Rs 100 per share. These GDS are convertible after June 2013, and would form approximately 4% stake in EPL post conversion

� Mr Jan Adam, CFO of Antwerp Port Auhority has been appointed as an additional non executive director on the Board of Essar Ports

Key Features and Benefits of the Strategic Alliance

8

� Infusion of approx Rs 175 crore of equity at Rs 100 per share through Global Depository Receipts

� Recognizing the attractiveness and potential of port assets of Essar Ports

� Growth of port traffic between Port of Antwerp and Ports of Essar

� Access to relationship with port operators and port based companies operating in Port of Antwerp

� Developing world class port facilities with focus on quality, productivity and environment

Aerial view of Port of Antwerp

9

Growth in Third Party Traffic

� Ramping up of third party traffic at Hazira

� One time en bloc approval received from GMB to handle 1 million ton third party coal at Hazira during monsoon of FY2013

� Coal Traders have approached EBTL for handling their cargo

� Applications are being made for handling of other third party cargo (clinkers) approx 1 to 2 MMT in FY 2013

� Handling of Project Cargo for L&T and others

� Third Party Storage terminal at Vadinar

� Plan to invest in crude tankages for traders and National oil companies.

� Will help in better utilization of excess capacity at SBM at Vadinar

� Commissioning of Coal berth at Salaya

� Currently 4 to 5 MMT of coal is being handled through shallow draft jetties in the nearby region

� Essar’s deep draft coal berth at Salaya plans to handle coal and bauxite for industries and coal traders in the region. The expected potential of third party cargo is around 8 MMTPA

� Commissioning of 14 MMTPA Merchant coal berth at Pa radip

� Approx. 12 MMT of coal is currently being imported at Paradip via non-mechanized berths. This cargo will be shifted to Essar’sdeep draft coal berth upon commissioning as per the concession agreement

� Third party traffic at Paradip coal berth is expected to be 12 to 14 MMTPA by FY15

� Building third party traffic at Paradip Iron ore an d bulk cargo Terminal

� Plan to handle 1 MMT of third party cargo in FY13

� Plans to handle 5 MMT of third party Iron ore cargo at its facility which will have better loading rate as compared to existing IOHP

10

Essar Ports: Key Results Highlights

� Essar Ports revenue increased to Rs 296.6 crore for Q4 FY12 as against Rs 203.9 crore in Q4 FY11, an increase of 45% .

� Revenue increased to Rs 1,131.0 crore for FY12 from Rs 746.5 crore for FY11, an increase of 52%

� Essar Ports achieved cargo handling of 12.36 MMT during Q4 FY12 as against 10.22 MMT in Q4 FY11

� Cargo handled was 43.23 MMT for FY12 as against 39.55 MMT for FY11

� During the quarter, company suffered loss due to recognition of interest on a CDR facility which was a contingent liability till last period. The one time liability due to this was Rs 235.5 crore

� EBITDA increased to Rs 243.2 crore in Q4 FY12 as against Rs 152.2 crore in Q4 FY11, an increase of 60 %

� EBITDA increase to Rs 913.2 crore for FY12 as against Rs 550.9 crore for FY11, an increase of 66%

� On account of above, Essar Ports suffered a loss of Rs 61.5 crore in Q4 FY12 as against profit of Rs 11.5 crore in Q4 FY11

� PAT increased to Rs 63.9 crores for FY12 as against Rs 28.5 crore for FY11, an increase of 124 %

� Essar ports achieved PAT of Rs 48.5 crore of PAT for Q4FY14 and Rs 173.9 crore for FY12 before the treatment for one time exceptional items

� The company also recognized a deferred tax asset in accordance with AS 22 to the extent of Rs 125.5 crore on unabsorbed tax losses.

� Net one time liability recognized during the quarter is Rs 110.0 crore

Vadinar Oil Terminal CDR – Recognition of Contingent Liability and Deferred Tax RecognitionCDR Contingent Liability:

� Pursuant to the CDR scheme entered into by Vadinar Oil Terminal Limited with its lenders in 2003, all interest on loans at the contracted rate of interest for the Vadinar Oil Terminal project for the period from 1October 1998 to 29 December 2003 was converted into a funded interest facility called Facility Stoppage.

� As per CDR terms, Vadinar Oil Terminal, subject to the consent of its Lenders, has the option to prepay the Facility Stoppage. Further, the interest on Facility Stoppage for the period from 25 April 2007 to 24 April 2012 was not payable in case of prepayment being made before 24 April, 2012

� The interest accrued during the above period was treated as contingent liability since Vadinar Oil Terminal planned to prepay the Facility before 24 April, 2012. This amount represents the additional interest that would otherwise have been charged to the income statement during the 5 year period (2007-2012) if the debt was not to be prepaid

� The above amount was not prepaid before 24 April, 2012, the company recognized the outstanding amount (shown as contingent liability) towards the interest for 5 years. This amounts to Rs 235.5 crores which has been recognized as a one time exceptionalliability

� This liability will bear an interest of 5% per annum and is repayable between FY2019 and FY2023

Recognition of Deferred Tax Assets:

� Vadinar Oil Terminal has recognized Rs. 125.5 crores as net deferred tax asset in accordance with the Accounting Standard (AS 22). The deferred tax asset has been recognized and carried forward only to the extent that there is virtual certainty that sufficient future taxable income is available as per the standard

� The deferred tax asset is due to excess of deferred tax assets on carried forward losses and unabsorbed depreciation over deferred tax liabilities as income.

Net one time liability recognized during the quarter is Rs 110 crore

Vadinar: Highlights for the Year

12

� Vadinar handled 9.06 MMT of cargo in Q3 FY12 as against 7.37 MMT for Q4 FY11, registering a jump of 23%. Cargo handled was

31.21 MMT for FY12 as against 30.05 MMT for FY11

� The jump in cargo handled at Vadinar is due to completion of expansion of Essar Oil refinery. The cargo handled is expected to go

further up as the refinery throughput ramps up

� 3 new HSD tanks of capacity 180,000 KL are under construction for Essar Oil and the construction is expected to complete during Q1

FY13

� Total number of vessels called at Vadinar during the year decreased from 320 vessels in FY11 to 271 vessels in FY12 due to parcel

size increasing to larger size ships

� ISO 2800 Security Management system and ISO 9001-2008 Quality Management system certifications renewed successfully during

the year

Hazira: Highlights for the Year

13

� Hazira handled 3.30 MMT of cargo in Q4 FY12 as against 2.85 MMT for Q4 FY11, registering a jump of 16%.

� Cargo handled was 12.02 MMT for FY12 as against 9.50 MMT for FY11, a growth of 26%

� In principle approval received from Railways for a green field railway project

� Approvals for Hazira expansion project are also on track

� Total vessels handled during the year increased from 190 in FY2011 to 243 in FY2012

� ISO 9001:2008 (Quality Management), ISO 14001:2004 (Health & Safety), OHSAS 18001:2007 (Environment) awarded to EBTL

Hazira during the year

Paradip: progress

14

Conveyor gallery erection at Paradip I

Paradip I (Iron Ore)

� 92% project completed. Estimated COD: Q1 FY13

� Ship loader trial operations completed

� Conveyor trials started

� Stacker reclaimer erection in progress

Salaya: progress

15

Construction work at Salaya

� 53% project completed. Estimated COD: Q4 FY14

� Ship unloaders are delivered

� 1 Stacker reclaimer erected, erection of other 2 are under progress

� Jetty construction and conveyor erection are under progress

� Environment and CRZ clearance are received. Forest clearance awaited for part of the project

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Essar Ports: Increasingly diversified cargo split w ith higher realization

Average realization increased to Rs 233/MT from Rs 1 87 / MT based on higher tariff for new cargo segmen ts and increased earnings post commissioning of 12 MMTPA expansion p roject at Vadinar in April 2011

Crude (SPM), 13.20

Liquid Product (Jetty), 8.70

Liquid Product (Road/Rail),

5.01

Liquid Intermediate,

3.14 Dry Bulk, 8.53

Breakbulk/Containers, 0.92

Project Cargo, 0.05

FY11 Total Volume 39.55 MMT

Crude (SPM), 12.18

Liquid Product (Jetty), 8.29

Liquid Product (Road/Rail), 4.34

Liquid Intermediate,

6.40

Dry Bulk, 10.13

Breakbulk/Containers, 1.78

Project Cargo, 0.11

FY12 Total Volume 43.23 MMT

9.917.3 24.0

30.131.2

39.0

4.5

0.0

20.0

40.0

60.0

80.0

FY11 FY12 FY13EM

MT

Traffic Growth (Volume Billed)CAGR FY11-13: 30%

Hazira Vadinar Paradip Ironore

39.948.5

67.5

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Customer mix changing with additional projects and increased utilization levels

Capacity: 88 MMTPAUtilization: ~50%

Capacity: 158 MMTPAEstimated Utilization: 75%+

Growth along with diversification in customer mix

Essar Group98%

3rd Party2%

Estimated Revenue Split (FY2012)

Essar Group75%

3rd Party25%

Estimated Revenue Split (FY2015)

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Essar Ports: Strong growth in performance

67% Increase in EBITDA based on: 1. increased volum es, 2. improved realization, and 3. higher EBITDA ma rgins

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

FY10 FY11 FY12

0.0

244.9

432.9427.4

502.9

698.9

Hazira Vadinar

Revenue (Rs Crore)

746.5

1131.0

427.4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

FY10 FY11 FY12

0.0

147.1

300.5326.5

368.3

596.2

Hazira Vadinar

EBITDA (Rs Crore)

550.9

913.2

FY11 EBITDA Margin 74%

FY12 EBITDA Margin 81%

326.5

(Figures in Rs Crore) Q4 FY12 Q4 FY11

Actuals Actuals

Total Income 296.6 203.9

Total Expenses 53.5 51.8

EBITDA 243.2 152.2

EBITDA Margin 82% 75%

Interest and Finance Expenses 114.3 89.9

Profit Before Depreciation and Tax 128.8 62.3

Depreciation 59.1 44.5

Profit Before Tax 69.7 17.8

Exceptional Item 235.5 0.0

Profit After Exceptional Item and Before Taxes -165.8 17.8

Tax -106.4 3.2

Adjustment for Share of Minority Interest 2.1 3.1

Profit After Tax -61.5 11.5

Number of Shares (Crore) 41.1 41.1

EPS (Rs) -1.5 0.3

Essar Ports: Financial Performance

19

� Quarter on Quarter revenue saw a growthof 45% to Rs 296.6 crore and EBITDA sawa growth of 60% to Rs 243.2 crore onaccount of higher tariff and increasedearnings post commissioning of VadinarExpansion

� During the quarter, company suffered lossdue to recognition of interest on a CDRfacility which was a contingent liability tilllast period. The one time liability due to thiswas Rs 235.5 crore. The company alsorecognized a deferred tax asset inaccordance with AS 22 to the extent of Rs125.5 crore

� Due to the above one time liability andasset, the company has reported loss of Rs61.5 crore for Q4 FY12 as against Rs 11.5crore profit for the previous year (for Portsonly within the earlier consolidated ESPLL)

� The profit for the quarter is Rs 48.5 crorebefore the recognition of contingent liabilityand deferred tax asset

Highlights for Q4 FY12

(Figures in Rs Crore) FY2012 FY2011 FY2011

Essar Ports Ltd ESPLL ESPLL

(Ports only) (Consol.)

(Includes Shipping Ports, Oilfields Services &

Logistics for H1 FY11)*

Total Income 1131.0 746.5 2086.1

Total Expenses 217.9 195.6 1174.1

EBITDA 913.2 550.9 912.0

EBITDA Margin 81% 74% 44%

Interest and Finance Expenses 420.8 325.8 473.8

Profit Before Depreciation and Tax 492.4 225.1 438.3

Depreciation 220.2 170.5 320.8

Profit Before Taxes 272.1 54.5 117.4

Exceptional Item 235.5 0.0 0.0

Profit After Exceptional Item and Before Taxes 36.6 54.5 117.4

Tax -62.2 13.4 34.6

Adjustment for Share of Minority Interest 34.9 12.7 12.7

Profit After Tax 63.9 28.5 70.2

Number of Shares (Crore) 41.05 41.05 41.05

EPS (Rs) 1.6 0.7 1.7

Essar Ports: Financial Performance

20

� Year on year revenue saw a growth of52% to Rs 1131.0 crore and EBITDA sawa growth of 66% to Rs 913.2 crore onaccount of higher tariff and increasedearnings post commissioning of VadinarExpansion

� The company recognized interest onCDR facility which was a contingentliability as exceptional item in Q4FY12which reduced the profit by Rs 235.5 crand recognized deferred tax asset onunabsorbed tax losses of Rs 125.5 cr inQ4 FY12

� Based on the above, PAT increased toRs 63.9 crore as against a profit of Rs28.5 crore for the previous year (for Portsonly within the earlier consolidatedESPLL)

Highlights for FY12

Debt as on 31 st March 2012 (Rs Crore)

Operating 3862

Projects 1626

TOTAL 5488

Analyst Contacts

Mr. Anshumali DwivediHead – Investor RelationsEssar Ports LimitedTel: + 91 22 6660 1544 / + 91 98339 45648Email: anshumali.dwivedi@essar.com

Mr. Rakesh KankanalaManager – Corporate FinanceEssar Ports LimitedTel: + 91 22 6660 1527 / + 91 99301 36596Email: rakesh.kankanala@essar.com

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Legal Disclaimer

“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement withrespect to the purchase or sale of any security of Essar Ports Limited (the “Company” or “EPL” or “Essar Ports Limited”)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 this presentation contain words orphrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties andassumptions that could cause actual results to differ materially from those contemplated by the relevant forward lookingstatement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and therecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Theinformation in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete orcondensed and it may not contain all material information concerning the Company. We do not have any obligation to, anddo not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation 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 hereinhas been independently verified by anyone else. No representation or warranty (express or implied) of any nature is madenor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither theCompany nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on thispresentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced,copied, distributed, shared or disseminated in any other manner.

The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession thispresentation comes should inform them about, and observe, any such restrictions.”

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