IL&FS Investment Managers Ltd. · NSE:IVC
IL&FS Investment Managers — Investor Presentation (December 2010)
23 slides from IL&FS Investment Managers's investor presentation, December 2010
Slide 1: IL&FS Investment Managers Ltd
ASILSFS | Private Equity IL&FS Investment Managers Ltd December 2010
Slide 2: Forward-looking statements disclaimer
Certain statements included in this presentation may constitute "forward-looking statements" in respect of the Company’s operations, performance, prospects and/or financial condition. By their nature, forward looking statements involve a number of risks, uncertainties and assumptions and actual resu
Slide 3: Contents
Section A : Overview 4 IL&FS Group IIML Overview Business Model Key Contributors Leadership Team Section B : Funds 11 Key Milestones Funds across Spectrum Exit Experience Section C : Financial Performance 19 Past Performance Growth in AUM Consolidated Financials 3
Slide 4: Section A: Overview
ASILSFS | Private Equity Section A : Overview
Slide 5: IL&FS Group: Earliest Infrastructure Developers, Unique Positioning
– Formed in 1988 – Initial participants were Indian Banks and Institutions Earliest Infrastructure Developers – International Institutional Investors inducted over the years • ORIX Corporation (Japan), Abu Dhabi Investment Authority • Earlier stakeholders include IFC, Govt. of Singapore, HSBC – Mult
Slide 6: IL&FS Group structure
Infra Development Financial Services IL&FS Infrastructure IL&FS Financial Services Development Corp IL&FS Securities Services Private Equity Fiduciary Services IL&FS Investment IL&FS Trust Company IL&FS Managers Service SPVs Ecosmart (Environment), IETS (Education) , ITL (Technology) , IPMSL (Proper
Slide 7: IIML overview
IL&FS Group, enjoys a pre-eminent position in the Seen the Indian PE world expand from less than infrastructure and financial services sectors US$ 20 mn to more than US$ 15 bn Investment spectrum spans VC to PE; Buy- outs to PIPEs Strong relationships with Governments, Multi-lateral and dome
Slide 8: Business model: revenue streams and investment model
Revenue Revenue Management Fee: Stream Stream - Typically 1.5-2% of AUM for the fund life - Highly visible, annuity revenue stream over 6-10 years Carry: - Performance upside through profit share - Hurdle rate ranges between 8-11% p.a. - Carry is 20% of profits from investments - A upside component
Slide 9: Key contributors
Banks/ Institutions Insurance /Pension Funds Others This is not an exhaustive list of contributors. In most instances, names of contributors can not be revealed on account of confidentiality 9
Slide 10: Leadership team
Mr. Shahzaad Dalal Dr. Archana Hingorani Vice Chairman CEO and Executive Director •26 years of financial markets •24 years of experience in the financial and investment experience services industry, including teaching finance and research •MBA from Northeast Louisiana University •MBA and PhD. Univer
Slide 11: Section B: Funds
ASILSFS | Private Equity Section B : Funds 11
Slide 12: Key milestones: fund launches by year
Saffron Fund – II, Standard Chartered IL&FS Asia Fund IL&FS India Realty Fund – II; IL&FS Milestone Fund II IL&FS Milestone Fund 2009 Pan Asia Project Development Fund 2008 2007 IL&FS India Realty Fund- I 2006 2005 2004 2003 Tara India Fund III; 2002 Urjaankur Fund India Project Development Fund 200
Slide 13: Diversified portfolio of funds across sectors
Private Equity Real Estate Infrastructure Two active funds aggregating Established 2005; first of the real Pan Asia focused Infrastructure US$ 378 mn estate funds in India Funds First Fund fully divested; distributed Funds aggregating US$ 2.0 bn Two active Fund aggregating carry US$ 703
Slide 14: IIML's experience: private equity funds
IIML’s IIML’s Experience Experience Investee Investee Companies Companies US$ 262 mn invested in 49 transactions Early investors in Retail, Shipyard, Media Name Vintage Corpus Investments Investments –– Across Across Sectors Sectors (US$ mn) Life Sciences Growth PE Funds 10% IT & ITES 24% AIG In
Slide 15: IIML's experience: real estate funds
IIML’s IIML’s Experience Experience Investee Investee Companies Companies Pioneer in India - First RE fund launched in 2005 Early investors in SRA & Industrial Parks US$ 1.3 billion already deployed in 58 transactions Name Vintage Corpus Investments Investments –– Across Across Funds Funds (US
Slide 16: IIML's experience: infrastructure funds
IIML’s IIML’s Experience Experience Investee Investee Companies Companies Over US$ 456 mn invested in 34 transactions Early investors in Telecom, Roads, City Gas, Rail Two Funds fully divested ; generated a gross return of 23% p.a. and 27% p.a. respectively Corpus Investments Investments –– Ac
Slide 17: Return profile and liquidity routes
Return Return Profile Profile –– Deep Deep experience experience and and consistent consistent performance performance Returns Number of IRR Multiple Investments Realized Investments 48 25% 2.0 x In addition, 18 investments have had liquidity events Liquidity Liquidity –– Across Across aa mix mix of
Slide 18: Exit experience: gross IRR and multiples
Gross IRR (%) Company Sector Gross Multiple (In US$ terms) Shopper's Stop Consumer Services 22.5 3.6 iMetrex Technologies IT 31.9 3.4 Indiagames IT 72.0 14.0 ibn18 Broadcast Limited Media 34.0 2.6 Hotel Leela Venture Hospitality 85.9 2.3 Max Telecom Ventures Telecom 19.9 4.0 Noida Toll Bridge Roads
Slide 19: Section C: Financial Performance
ASILSFS | Private Equity Section C : Financial Performance 19
Slide 20: Past performance: AUM, revenue, PAT and stock growth
AUM increased 19x Revenues increased by 22x PAT increased by 21x Dividend increased at a CAGR of 27% (Total Payout of Rs 62.5 per share (for one share of Rs 10 in 2000) Stock Price grew 57x (Compared to Sensex growth of 5x) 20
Slide 21: AUM break-up FY 2011
Total AUM US$ billion AUM grew at a CAGR of 60% during FY2006 to FY2011 AUM Break-up FY 2011 Private Equity 13% Infrastructure 23% Real Estate 64% 21
Slide 22: Consolidated financials
(Rs Mn) FY 2007 FY 2008 FY 2009 FY 2010 Total Income 601 1,057 1,642 1,759 Total Costs 221 592 796 803 PBT 380 465 846 956 PAT 178 319 623 741 PAT Margin (%) 30 30 38 42 Net Worth 440 710 928 1,368 EPS (Rs)* 1.5 1.6 3.1 3.7 Dividend (%)** 40 55 70 75 * Adjusted for 1:2 Bonus Issues in FY 2007 and FY
Slide 23: Business model and outlook
IIML has a successful business model built assiduously over the last decade ◦ Fund Manager of repute ◦ A port of first call for investees Business model to be replicated resulting in enhanced AUM / revenues through ◦ Larger follow on funds ◦ New emerging opportunities ◦ Extending Geographies S
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