Lanco InfratechInvestor Presentation

July 2009

2

Disclaimer

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities of the Company by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. This presentation may not be copied or disseminated in any manner.

3

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

4

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

5

32

350

690

1,292

-

500

1,000

1,500

FY06 FY07 FY08 FY09

(US$

mm

)Lanco Infratech – A Leading Integrated Infrastructure Player

Construction & EPC Power Infrastructure Property Development

• Executed projects worth US$1.3bn over last 3 years (FY07 - FY09)

• Order book of US$2.2bn

• 5 plants with approx. 511 MW capacity under operation

• 9 plants with approx. 3,913 MW capacity under construction

• 2 plants with approx. 3,960 MW capacity under development

• Largest private player in power trading with 12.4% market share

• Developing approx. 163 km of National Highways in Karnataka

• Bidding for constructing and operating Airports, Metro Rail Transport Systems and renovation, modernization & operation of roads, ports and redevelopment projects

• 4mm sq ft under development in Hyderabad, India

• Developing Lanco Hills, mixed used space of high rise residential structures, IT SEZ office space, shopping malls and hotels

Division of Lanco Infratech

Special Purpose Vehicles

Note:

1 This presentation assumes an exchange rate of US$ / INR =47

2 Financial year ending March 31

3 mm indicates million

Revenues EBITDA PAT

4

98

149189

-

50

100

150

200

FY06 FY07 FY08 FY09

(US$

mm

)

4

40

6075

-

25

50

75

100

FY06 FY07 FY08 FY09

(US$

mm

)

6

Pan India Presence

Chitradurga Kondapalli - I

Aban power

Amarkantak – I & IIAmarkantak – III & IV

Kondapalli - II

Udupi

Teesta

Lanco Uttaranchal

Anpara

Babandh

Lanco Hills

Plants under construction

Plants under development

Plants under operation

Plants under construction

Plants under operation

Plants under construction

Plants under operation

Property development

Road development

Vamshi - I

Vamshi - IIVamshi Industrial

Lanco Green

81 km Bangalore – Hoskote – Mudbagal82 km Neelamangla – Devihalli Tamil Nadu Wind

Coal Based

Hydro

Gas

Wind

Registered office

Administrative office

Hyderabad

Gurgaon

Coal mine

7

Strong Push to Drive Infrastructure Growth

Infrastructure spending (2007-2012)

Source: UNDP, Human Development Indicators, 2007/08

In the XIth five year plan (2007-2012), the Government targets to add 78,700 MW of generating capacity

Government is targeting investment of >US$400 billion during 2007-2012

Commentary

• Recent election mandate provides a stable coalition government which may focus on infrastructure

• Positive regulatory reforms remain a key driver of growth

• Power, airports and ports are likely to be the fastest growth sectors in the foreseeable future

Per capita consumption of electricity

Total - US$437bn

Demand / supply gap for power

774

579625

666 689632 691739

591548

-

200

400

600

800

1,000

FY05 FY06 FY07 FY08 FY09

(bn

kwh)

0%

3%

6%

9%

12%

Requirement Availability Deficit

18.4

14.2

7.4 6.4

2.3 1.7 0.6 1.2

-

5

10

15

20

Canada US Germany Russia Brazil China India Developingcountries

(Tho

usan

d kw

h/ye

ar)

Source: Planning commission (XIth five year plan) Source: Central Electricity Authority (“CEA”)

0

40

80

120

160

Power

Roads

and B

ridge

sTele

com

Railway

sIrri

gatio

nWater

/ san

itatio

n

Ports

Airport

sStorag

e

Gas

(US$

bn)

Central Govt. State Govt. Private sector

157

79 68 65 5551

199 6 5

8

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

9

18

3584

131

238

408582

631

1,000

1950

19601970

1980

1990

2001

20042006

2012

No. of Units

Projected 2012 peak Energy Deficit Power Deficit (2009)

Per Capita Consumption Growth (Units)Planned Vs. Installed Capacity – Xth Plan (MW)

(0.9)%

(2.0)%

(3.2)%

(3.6)%

(4.8)%

(6.2)%

(7.6)%

(10.0)%

(13.0)%

(15.9)%

(22.1)%

(23.7)%

(24.3)%

OR

C H

R J

WB

KN

T N

A P

M P

KL

P N

UP

M H

GJ

(1.5)%

(2.6)%

(1.1)%

(3.2)%

(6.0)%

(7.9)%

(6.8)%

(17.2)%

(11.8)%

(10.6)%

(20.9)%

(21.4)%

(9.8)%

Peak Deficit States Energy Deficit

58% growth in XIth Plan

Source: CEA

Source: Ministry of Power Source: CEA

Power Deficit Scenario

4,481

2,691

6,676

3,553

5,951

7,33012,790

1,1801,3008,7424,495

1,231

700

1,170

0

10,000

20,000

30,000

Hydro Hydro Thermal Thermal Nuclear Nuclear

(MW

)

Central sector State sector Private sector(Planned) (Installed) (Planned) (Installed) (Planned) (Installed)

Source: CEA

(9.7) (9.3)(5.0)

1.63.5

(5.8)

(0.7)

3.7

(4.4)

(10.4)

(4.5)

15.0

2.7

15.816.0

(15.0)(10.0)(5.0)0.05.0

10.015.020.0

North India West India South India East India North-EastIndia

Winter Peak Monsoon Peak Summer Peak

10

Presence Across Value Chain De-risking the Business

Fuel (Coal mining) Construction and EPC Generation and O&M Trading

• Captive coal mine allocated by Govt. of India to Lanco and five others

• Coal to be used for portion of needs of the Orissa based 2,640 MW Babandh power plant

• 5 completed projects with capacity of 514MW and 3,913MW projects under development

• Strong engineering capability and resources spanning feasibility studies, front-end design and complete detail design with over 10 years of experience in design and development of Power Projects

• Handles global suppliers selection and sourcing of diverse materials like high-pressure fabricated equipment, skids, electrical and instrumentation systems

• 5 operating projects with capacity of 511MW and 7,873 MW projects under implementation

• Generation activities include conventional and non-conventional sources of energy like coal, hydro and wind

• Largest private sector player in Indian power trading market with approx. 12% market share

• Covers all the five regions of India by covering 32 utilities from 19 States

• Traded 2,841mm units in year ended March 31, 2009

• Bought 5% stake in the Indian Energy Exchange floated by Financial Technologies Ltd and Power Trading Corporation

Transmission and Distribution

• Strategy includes possible expansion into transmission and distribution

Integrated presence across value chain capturing value addition across the businesses

11

Focused on Power Sector with a Pan-India presence

Location of power plants

Fuel diversification of power plants1

Note:1 After installation of all current projects including projects under development

Regional split of power plants1

One of the early private sector entrants in the field of power generation with first plant set up in 2000

Chitradurga

Aban

Kondapalli - I

Kondapalli - II

Vamshi Hydro - I

Tamil Nadu Wind

Amarkantak – I & II

Amarkantak – III & IV

Vamshi Hydro - II

Vamshi Industrial

Lanco Green

Udupi

Teesta

Lanco Uttaranchal

Anpara

Babandh

Plants under operation

Plants under construction

Plants under development

Central22.9%

North17.2%

South22.4%

East37.5%

Wind0.1%

Domestic coal

68.7%Imported coal

12.1%

Gas10.2%

Hydro8.9%

Capacity (MW)

511

3,913

3,960

Total 8,384

12

Mature Power Projects Provide Visibility into Earnings

Projected capacity addition

FY10• Amarkantak I & II• Vamshi Industrial • Kondapalli II• Udupi I

FY11• Budhil• Udupi II• Anpara

FY12

• Uttaranchal I

FY13

• Amarkantak III• Babandh (2

units)• Teesta• Uttaranchal II

FY14

• Babandh (2 units)

• Amarkantak IV

Lanco is expected to increase its power generation capacity significantly in next 2 years

1,994.5 MW

3,772 MW

3,848 MW

6,404MW

8,384 MW

511 MW

Current• Kondapalli I• Aban• Chitradurga• Tamil Nadu

Wind• Vamshi

Hydro

13

Project Status UpdateProjects under operation

Plant Fuel Capacity

(MW) Total cost (US$mm)

Kondapalli I Gas 368 241

Aban Gas 120 93

Chitradurga Wind 3 3

Tamil Nadu Wind Wind 10 10

Vamshi Hydro Hydro 10 12

Total 511 359

Projects under construction

Plant Fuel

Govt. approval

status

Financial closure status

Capacity (MW)

Budgeted cost

(US$mm) PPA

(Years) Estimated completion Current status

Amarkantak I Coal 300 275 25 Q2 FY101 Synchronization with grid completed

Vamshi Industrial Hydro 10 12 35 Q2 FY10 / Q3 FY10 EOT Crane commissioned

Amarkantak II Coal 300 285 25 Q3 FY10 Turbine, generator erection currently under progress; Hydro testing to happen soon

Udupi I & II Imported Coal 1,0152 923 25 Q3 FY10 / Q1 FY11 Turbine, generator erection currently under progress

Kondpalli II Gas 366 253 Merchant Q2 FY10 / Q4 FY103 Gas turbine generator placed on the foundation

Lanco Green Hydro 70 89 35 Q2 FY11 Pressure shaft excavation complete

Anpara Coal 1,200 729 29 Q4 FY11 Boiler erection under progress

Lanco Uttaranchal I & II Hydro 152 221 Merchant Q4 FY12 / Q4 FY13 Expected financial closure in FY10

Teesta Hydro 500 638 35 Q4 FY13 Construction commenced in May 2007 and currently in progress

Total 3,913 3,425

Projects under development Babandh Coal (Partly Owned) 2,640 3,370 Part PPA Q4 FY13 / Q1FY14 MOU signed for 1,320 MW and land acquisition in

progress

Amarkantak III & IV Coal 1,320 1,685 Part PPA Q4 FY13 / Q1FY14 MOU signed with Govt. of Chattisgarh; Environmental clearances obtained

Total 3,960 5,055

Note: 1 Currently under litigation

2 1,200 MW upon receipt of approval 3 Q2 FY10 is for open cycle and Q4 FY10 is for combined cycle

14

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

15

In-house EPC Reduces Execution Risk/ Enhances Margins

Revenue contribution1 (FY09) FY09 EBIT margin comparison with other businessesEBIT contribution (FY09)

In-house EPC enables Lanco to complete projects on an accelerated basis

US$1.3bn US$166mm

13.4%11.8%

5.8%

0%

4%

8%

12%

16%

EPC Power PropertyDevelopment

Capability to take up more projects

• Approx. 114 km Veeranam water supply transmission pipeline constructed along with JV Partner, Punchak in Tamil Nadu

• Balance of Plant of approx. 368 MW LANCO Kondapalli Power Project in Andhra Pradesh

• Balance of approx. 120 MW Aban Power Project in Tamil Nadu• 825 bed Asvini Hospital for Indian Navy at Colaba, Mumbai• Four laning of National Highway 31 in West Bengal• Construction of 1st phase of 100 bed hospital, college and hostel

complex etc., at National Institute of Unani Medicine, Bangalore• Construction of Railway Offices at Koparkhairane Railway Station

List of projects executed

• Lanco undertakes the EPC business of its planned projects and profits earned during the construction period can be injected into new projects in the form of equity contribution

• The business model also enables the company to quote more aggressive tariffs in the competitive bidding process thereby increasing the likelihood of getting new projects while maintaining acceptable profit margins

Note:

1 Before elimination of inter segment revenues

Pow er39.1%

Property Development

2.3%

Others0.3%

Construction and EPC

58.3%

Property Development

1.0%

Pow er36.7%

Construction and EPC

62.3%

16

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

17

Leveraging Construction Expertise to Build Infrastructure Business

• Awarded two National highway projects in Karnataka

– Approx. 81 km stretch connecting Bangalore – Hoskote –Mudbagal

– Approx. 82 km stretch connecting Neelamangla – Devihalli

• Budgeted project cost of US$288mm

• Concession periods of 20 years and 25 years respectively during which toll will be collected

• Construction under progress and expected to be completed by Q1FY11

Lanco has moved into selective infrastructure projects to leverage its EPC experience

18

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

19

Property Development - An Opportunistic PlayLanco Hills is the group’s foray into property development, located in Hyderabad, spread over 100 acres and comprises residential space, office space, IT SEZ, shopping mall and two hotels with US$292mm of capital expenditure already incurred

Lanco Hills

Residential • Developing 12 residential towers with construction on 6 towers in first phase • Construction in progress with possession of apartments to commence in Q4 2010

Office space• Office complex with built-up area of 0.5 mm sq ft• Constructing SEZ space with completion target of 2012• Constructing office space with completion target of 2010

Shopping mall • Plans to build a 2.5mm sq ft of a shopping mall • Construction will be in phases

Hotels • Tied up with Grand Hyatt for a 400 room, 5 star deluxe hotel

20

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

21

32

350

690

1,292

-

300

600

900

1,200

1,500

FY06 FY07 FY08 FY09

(US

$mm

)

4

40

60

75

-

25

50

75

100

FY06 FY07 FY08 FY09

(US

$mm

)

4

98

149

189

-

50

100

150

200

FY06 FY07 FY08 FY09

(US

$mm

)

Steady Growth History

Revenues EBITDA

PAT

Source: Company filings

Power projects capex and debt overview (As of March 31, 2009)

1,619

1,609

1,1811,806

0

1,000

2,000

3,000

4,000

Capex Debt

(US

$mm

)

Incurred Remaining

3,425

2,790

22

Agenda

1 Company Overview

2 Power Business

3 Construction and EPC Business

4 Infrastructure Business

5 Property Development Business

6 Key Financials

7 Experienced Management Team

23

Experienced Management Team

L Madhusudhan RaoExecutive Chairman

• M. Tech; MS (Wayne Univ)

• Joined Lanco in 1989

• Guided the company through its crucial stages of growth and mergers

G Bhaskara RaoExecutive Vice Chairman

• ME (Machine Design), B.E. (Production) from IISc

• 25 years of experience in construction industry in project planning and implementation

G Venkatesh BabuManaging Director

• Chartered Accountant and Cost Accountant

• 15 years of experience in Commercial Banking, Corporate Advisory,Mergers & Acquisitions, Project Finance and Equity Capital Markets

J Suresh KumarChief Financial Officer

• Chartered Accountant

• Over 14 years of experience in the financial services sector including M&A, corporate restructuring and fund raising

• Previously employed with JM Morgan Stanley

P Panduranga RaoDirector and Chief Executive Officer, Lanco Kondapalli

• Chartered Accountant and Company Secretary

• 28 years of experience from diverse industries across companies

K Raja GopalChief Executive Officer and Director, Lanco Amarkantak

• ME, MBA (Marketing)

• 22 years of experience in project development and various functional disciplines of manufacturing and power industries

Pochendar ShenigarapuChief Executive Officer, Lanco Hills

• Post graduation in Environment Engineering, B.E. (Civil)

• Previous work experience with IVRCL, Hyderabad Metropolitan Water Supply & Sewerage Board and CPWD

• 26 years of experience

Prasad KandimallaDirector & Chief Executive Officer –Renewable Energy, Carbon Assets

• Masters Degree and Specialisation in Energy & Systems

• Experience in financial services, IT, Management Consultancy spanning several countries

SC ManochaCEO - EPC

• Mech. Engineer & Mgmt Graduate

• 35 years experience in Reliance Energy, Maithon Power, Utility Powertech, L&T, BHEL and ISGEC John Thomson

Pradeep LenkaChief Executive Officer-Thermal, Lanco Infratech Ltd

• ME, 30 years of experience in power projects as OEM and also as IPP developer

• Executed more than 15 projects in BHEL

S M RoyCEO - Construction Division

• Mechanical engineer and post graduation degree in Business management from XLRI Jamshedpur

• 40 years of experience

24

Thank You