ESPLL Demerger

E
Essar Global
Gl b l − one off IIndia’s
di ’ largest
l t industrial
i d t i l houses
h
Essar Global

Essar Energy plc* Essar Shipping & Aegis

Essar Steel Essar Projects Essar Telecom
Logistics BPO Business

Essar Oil Essar Power(a)

Upstream
Total reserves and
resources (incl.
unrisked):
2,132mmboe
Significant
development and
exploration upside in
India and abroad
Refining
14MMTPA capacity
todayy with p
plans to
expand to 18MMTPA
Securing international
distribution/access to
maximise margins
Marketing
c.1,300 retail outlets
Increasing current India Ports Essar Projects India Vodafone Essar Aegis - BPO
capacity from Hazira Steel Complex Operational 109mn subscribers One of the leading
1,220MW to z Engineering
10MMTPA integrated Dry Bulk : 30 MTPA Global player in BPO
11,470MW by 2014 Essar Telecom East
steel plant (b) Wet Bulk : 46 MTPA z Fabrication and Service sector
Africa
Current operating
p g Essar Hypermart Under Construction Caters to:
z Construction GSM services in
plants Steel distribution chain Dry Bulk : 70 MTPA z Telecom
Kenya, Uganda,
Total capacity: North America Wet Bulk : 12 MTPA Congo (Brazzaville)
1,220MW Fully geared to
Algoma Steel, z Healthcare
execute turnkey EPC
Canada Shipping & Oilfields projects in India and Indus Towers
By 2012 Services z Financial services
4MMTPA integrated overseas (Essar owns 14%)
Total capacity: Owns and operates 25
steel plant One of the world’s z Travel & hospitality
p y
6 100 MW
6,100 ships
ships. Global
Gl b l Supplies
S li FZE
Minnesota Steel l
largest
t tower
t company
Iron ore mine with One semi-submersible (UAE) 102,000 towers z Consumer products
By 2014 (Essar owns 25%)
resources of 1.4BT & rig and 12 land rigs.
Total capacity: The Mobile Store
11,470 MW 4.0mtpa Pellet Plant 12 new ships and 2 Global procurement Employee strength
Trinity Coal Blocks new Jack Up rigs on company Chain of 1,225 39,000+ employees
188.6MT coal reserves order retail outlets globally
Coal Blocks Project Management
450 MT coall reserves across 6 mines in
& Consultancy 31,000+ seats in
across mines in India, eastern Kentucky and The Electronic Store
Indonesia & southern West Virginia 42 global locations
Large format stores for
Mozambique Indonesia Consumer Durables &
P T Essar Indonesia IT products
0.4MMTPA cold rolling
complex

International logistics Provider of

Integrated company Over a decade of Leading EPC Significant player in the multi-channel CRM
Integrated, global steel provider to the steel, oil
spanning the oil & gas experience in the contractor with 40 year Indian telecoms solutions to a blue-
producers refining and power
value chain Indian power industry track record industry chip, multinational
industries
client base
Source: Company information
* Listed on London Stock Exchange
(a) Capacities stated represent gross capacity
(b) Currently operating at 4.6MMTPA and due to be expanded to 10MMTPA later this year
ESPLL Demerger

The Board of Directors of Essar Shipping Ports & Logistics Ltd (ESPLL) have
approved, in principle, the demerger of the following businesses into a single separate
entity:

• Sea Transportation Division

• Oilfields Services
• Logistics

The Ports business will be retained within ESPLL.

The Board has formed a committee of Directors that will work along with the
appointed advisors viz. Ernst & Young and Amarchand Mangaldas to finalize the
scheme and file the same with regulatory authorities.

2
Rationale for Demerger

• ESPLL was setup in 1970s as a shipping company,

company the company has incubated the
Ports, Oilfields Services and the Logistics business over the last five years

• The
Th PPorts
t business
b i h
has now b
become a mature
t b
business,
i iis off substantial
b t ti l size
i and
d
is gearing to embark on its own growth trajectory

• The Shipping and Oilfields Services business,

business as well,
well has charted out sizable
expansion plans

• The demerger will:

• create focussed entities that will have the ability to plan their own growth
• create better value for all stakeholders

3
ESPLL Demerger

Pre Demerger Post Demerger

Promoters
P
Promoters
t P bli
Public

83.7% 16.3%
83.7% Public 83.7%

16.3%

Essar Shipping Ports

& Logistics Limited Shipping, Logistics
Ports
& Oilfields Services

4
Ports Business

5
Ports Business – Overview

ƒ 46 MTPA liquid terminal at Vadinar

Operational
ƒ 30 MTPA dry bulk terminal at Hazira…..

ƒ 20 MTPA Dry bulk terminal at Salaya

Under ƒ 20 MTPA Dry bulk terminal at Hazira
construction ƒ 14 MTPA Coal terminal at Paradip
/ development ƒ 16 MTPA Iron Ore berth at Paradip
ƒ 7+5 MTPA liquid terminal expansion at Vadinar

ƒ 158 MTPA port capacity by FY 2013

ƒ Base Industry commodity cargo mix
ƒ Strategic locations with long term Take or Pay contracts
ƒ High operating margins
ƒ Experienced management team

Steady annuity based business backed by long term take or pay contracts
6
Ports Business – Portfolio of Assets
Vadinar Paradip I (Iron ore)
Capacity Draft
Port (MTPA) (Mtr) Cargo Customer COD Capacity Draft
Port (MTPA) (Mtr.) Cargo Customer COD
Vadinar-I 46 17* Crude Oil, Essar Oil Operating
POL Paradip-II 16 14 Iron Ore / Essar Steel March
Pellets 2011
Vadinar-II 7 17 Crude Oil, Essar Oil April 2011
POL
Vadinar-III 5 17 Crude Oil, Merchant January
POL 2013

Salaya
Capacity Draft
Port (MTPA) (Mtr) Cargo Customer COD
Salaya 20 12 Coal, Pet Essar December
Coke Power, 2011
Merchant

INDIA
Hazira Paradip
p II ((Coal))
BAY of Capacity Draft
Capacity Draft
BENGAL Port (MTPA) (Mtr.) Cargo Customer COD
Port (MTPA) (Mtr) Cargo Customer COD
Paradip-I 14 17.1 Coal Merchant October
Hazira-I 30 13 Iron Ore, Coal Essar Steel Operating (Coal) 2012
Limestone, Merchant
Coils, Slabs

Hazira-II 20 15 General Essar Steel, Sept

Cargo, Coal, Merchant 2011 INDIAN
Containers OCEAN
Hinterland for ports
Operating
Under
U d C Construction
t ti
Under Development

Notes:
Capacities stated represent gross capacity
* Draft alongside product berth, draft at SBM
40mtrs

Source: Company information

7
Ports Business – Key Highlights

India’s 2nd largest private port owner and operator with 76 MTPA operational capacity, being increased to
1
158 MTPA by FY 2013

2 Capacity backed by long term Take or Pay contracts

3 Strong near term earnings visibility

4 Actively bidding for upcoming PPP port projects

5 Financial closure achieved for all ongoing projects

8
Shipping, Logistics & Oilfields Services
B i
Business

9
Shipping Logistics & Oilfields Services – Overview
Shipping,

ƒ Fleet of 25 vessels, DWT of 1.31 mn

ƒ 2 modern
d D
Double
bl HHullll VLCC
VLCCs
ƒ 4 Capesize ships
Operational ƒ 2 Supramax bulk carriers
ƒ 2 x 13,000 dwt dry bulk carriers
ƒ One Semi-submersible
Semi submersible and 12 Land rigs . .
ƒ Fleet of lighterage assets: floating cranes, barges, etc

ƒ 12 new ships on order:

Under ƒ 6 x 105,000 dwt Mini-Capes
construction ƒ 6 x 54
54,000
000 dwt Supramax bulkers
ƒ 2 new Jack Up rigs on order…… ……

ƒ Over three decades of experience in the shipping industry

ƒ Majority of fleet on long term contracts – limited exposure to spot
markets.
ƒ Significant investments made in oilfields services
ƒ Strong client base consisting of Baosteel, SAIL, Indian Oil
Corporation, Essar Steel, Essar Oil, etc.
ƒ Strong banking relationships
ƒ Experienced management team in place

Poised to cater to the growing logistics markets

10
Shipping Logistics & Oilfields Services – Key Highlights
Shipping,

1 Over three decades of experience in the shipping industry

2 Majority of fleet on long term contracts – minimal exposure to spot markets

3 Significant investments made in oilfields services

4 Essar Wildcat has now completed 600 days of LTI free operations

5 Ne b ildings on order
New-buildings order: ttwelve
el e ships and ttwo
o Jack Up rigs

11
Annexures

12
Hazira Port: Simultaneous Panamax Berthing

13
Hazira Port: Simultaneous Supramax Berthing

14
Hazira Port: Berthing Operations

15
Hazira Port: L&T Project Cargo being discharged

16
Hazira Port : L&T Project Cargo being discharged

17
Hazira Port: Specialized Project Cargo Ship Berthed

18
Hazira Port: MV Malvika Berthed

19
Vadinar Port: SPM Discharge Operations

20
Vadinar Port: Simultaneous berthing

21
Vadinar Port: Tankages

22
Vadinar Port: Road Gantry

23
Vadinar Port: Railway Gantry

24
Shipping: MT Ashna - VLCC

25
Shi i
Shipping: MV Kiran
Ki – Capesize
C i bulker
b lk

26
Shi i
Shipping: Essar
E Wildcat
Wild t – Semi
S i Submersible
S b ibl Rig
Ri

27
Legal Disclaimer

“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement
with respect to the purchase or sale of any security of Essar Shipping Ports & Logistics Limited (the “Company” or
“ESPLL” or “Essar Shipping Ports & Logistics 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 or phrases that are forward looking statements. All forward-looking statements are subject to risks,
uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the
relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date
of this presentation, and there can be no assurance that future results or events will be consistent with any such
opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy
is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the
Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements
reflecting circumstances arising after the date of this presentation 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
herein has been independently verified by anyone else. No representation or warranty (express or implied) of any
nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness,
completeness or accuracy of any information,
information projection,
projection representation or warranty (expressed or implied) or
omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss,
howsoever, arising from any use or reliance on this presentation 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
this presentation comes should inform them about, and observe, any such restrictions.”

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