Power Grid Corporation Of India Limited · NSE:POWERGRID
Power Grid Corporation Of India — Investor Presentation (February 2012)
34 slides from Power Grid Corporation Of India's investor presentation, February 2012
Slide 1: Power Grid Corporation of India Limited Corporate Presentation (Feb-2012)
Power Grid Corporation of India Limited Corporate Presentation (Feb-2012) POWERGRID – One Nation, One Grid 1
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securit
Slide 3: Company Overview
Company Overview Key Highlights Future Business Plan Financial Summary & Investment Programme Appendix
Slide 4: Company Overview
Company Overview Overview Sub-Stations Transmission Lines 145 Nos. Carrying about ~50% of total power generated 90,100 ckm Transformation Capacity Largest in India in FY11 102,100 MVA Transmission ― 3rd largest transmission utility in the world1 Utility in India ― Owned 69.42% by Government of India
Slide 5: Long History & Rich Experience in Power Industry in India
Long History & Rich Experience in Power Industry in India Mission Establishment and Operation of Regional and National Power Grids to facilitate transfer of electric power within and across the regions with reliability, security and economy, on sound commercial principles Notified as a Navratna Comp
Slide 6: POWERGRID Network
POWERGRID Network The Central Transmission Utility and National/ Regional Grid Operator1 1. Through Power System Operation Corporation Limited (POSOCO), a fully owned subsidiary of POWERGRID POWERGRID – One Nation, One Grid 6
Slide 7: Key Business Lines
Key Business Lines Consultancy (National & Transmission Telecom International) Provides in-house expertise in Owns & Operates more than Development of various facets of Transmission, 25,000 kms of telecom network Central Sector Grid Sub- transmission, Distribution, Leasing transmission line towers T
Slide 8: Key Highlights
Company Overview Key Highlights Future Business Plan Financial Summary & Investment Programme Appendix POWERGRID – One Nation, One Grid
Slide 9: Key Highlights
Key Highlights 1 Indian Power Sector: Poised for Sustained Growth 2 Established execution track record 3 Proven Growth Track Record and Conservative Capital Structure 4 High Operational Efficiency and Effective Project Management 5 Government ownership and Stable returns with low business risk 6 Att
Slide 10: Positioned to Capitalize on India's Growing Energy Demand
Positioned to Capitalize on India’s Growing Energy 1 Demand Power generation capacity is expected to grow at a rapid pace to address the massive supply-demand imbalance created by continued economic growth Per Capita Consumption in India Remains Low Significant Supply is Needed to (kWh)1 Bridge the
Slide 11: Generation Trends Expected to Drive Demand for Long Transmission Lines
Generation Trends Expected to Drive Demand 1 for Long Transmission Lines Dispersed Energy Capacity… Load Centers Are Far Away From Supply Centers Large pit-head stations concentrated in a few regions Hydro projects in North Eastern Region, Himachal Pradesh, Jammu & Kashmir Large imported coal based
Slide 12: Strong Execution Track Record
2 Strong Execution Track Record Execution Track Record Capex Targets Achieved… (US$ bn) Consistent successful execution of projects 3.54 — 90,100 ckm of transmission lines carrying ~50% of total power generated in the country 2.38 2.4 — 145 substations with transformation capacity of 102,100 MVA 2.1
Slide 13: Proven Growth Track Record
3 Proven Growth Track Record Revenues (US$ mn) Total Assets1 (US$ mn) 1 - Total Assets = Net Block + WIP + Investments + Current Assets $17,527 $1,820 $15,146 $14,594 $1,501 $1,475 $12,713 $1,228 $1,304 $10,864 $1,016 $8,645 FY08 FY09 FY10 FY11 FY11 - 9M FY12 - 9M FY08 FY09 FY10 FY11 FY11 - Dec FY12
Slide 14: Conservative Capital Structure
3 Conservative Capital Structure Total Debt and Networth (US$ mn) Operating Cash Flow and Total Cash (US$ mn) $9,988 $1,328 $1,324 $1,138 1176 $8,177 $6,883 $5,693 736 $4,715 $598 656 $4,453 $4,270 486 $2,924 $3,183 373 $2,700 NA FY08 FY09 FY10 FY11 FY12 - 31 FY08 FY09 FY10 FY11 FY12 - 31 Dec 11 Dec
Slide 15: Debt Structure and Liquidity position
3 Debt Structure and Liquidity position Sources of Funds(%) 2010-11 Application of Funds (%) 2010-11 Debt maturity Profile (US$ mn) Net Current Advace against Equity Investments Assets up to 3Y, 2,078, depreciation and 7.04% 2.08% over 10Y, 2,522, Reserves 0.80% 21% deferred tax Construction 25% 5.0
Slide 16: High Operational Efficiencies
4 High Operational Efficiencies Rated as one of the best transmission companies in Modern Technology terms of system availability1 Aerial Patrolling System availability in 2010-11: 99.8% No major grid disturbance since Jan’03 Establishing a ‘National Transmission Asset Management Center ‘ for optima
Slide 17: Case Study: Jan-2012: Power Restoration in J&K
Case Study: Jan-2012: Power Restoration in J&K Successful restoration of power supply in J&K within 48 hours, after a line situated at 2,100m altitude in the Himalayas broke due to extreme snowfall in the region POWERGRID – One Nation, One Grid 17
Slide 18: Government ownership and Low business risk
5 Government ownership and Low business risk Significant ownership of GoI Strategic importance Government of India owns 69.42% as of 31 Dec 2011 POWERGRID is strategically important to GoI because of the POWERGRID is The Central Transmission Utility of the vital role it plays in the development of I
Slide 19: Growth Potential in Consulting Business
6 Growth Potential in Consulting Business Description Major Clients Orders for projects worth ~ US$ 2.02 bn received in the current FY Consultancy POWERGRID has served >100 clients Business – since beginning by giving consultancy Domestic 22 projects worth US$ 3.67 bn in hand Providing Consultancy S
Slide 20: Opportunities In Telecom Business
6 Opportunities In Telecom Business Telecom: Fiber Optic Busiiness POWERGRID Broadband Telecom Network Network Coverage: Presently 25,000 km Network Reach: All India; covering about 110 cities (including remote areas of North Eastern Region and Jammu & Kashmir) Faster Roll-out (~4 km in 2-3 days) &
Slide 21: Seasoned Management Team
7 Seasoned Management Team Name Designation Educational Qualification Industry Experience R.N.Nayak Chairman & First class Bachelor of Electrical 33 years of work experience, primarily in the power sector Managing Director Engineering from REC Rourkela More than 19 years in POWERGRID as a founder me
Slide 22: Future Business Plan
Company Overview Key Highlights Future Business Plan Financial Summary & Investment Programme Appendix POWERGRID – One Nation, One Grid
Slide 23: Business Plan
Business Plan XI and XII Plan capacity addition targets of 62GW Cluster of and 100GW respectively involving 32% and 57% Concentrated participation by private sector Demand pockets Independent Power Producers (“IPPs”) setting up power generation plants, mainly in resource rich areas POWERGRID - Nodal
Slide 24: Business Plan (contd.)
Business Plan (contd.) Associated Transmission Systems for UMPPs Linkages with POWERGRID given the responsibility to implement neighboring transmission systems associated with Ultra Mega Power Projects (“UMPPs”) countries Four UMPPs (namely Sasan, Mundhra, Krishnapatnam and Tilaiyya) awarded Transmi
Slide 25: Financial Summary & Investment Programme
Company Overview Key Highlights Future Business Plan Financial Summary & Investment Programme Appendix POWERGRID – One Nation, One Grid
Slide 26: Financial Summary
Financial Summary (US$ mn) FY08 FY09 FY10 FY11 9m FY12 Income Statement Net Sales 1,016 1,228 1,501 1,820 1,475 EBITDA 806 993 1,230 1,552 1,258 EBITDA margin 79% 81% 82% 85% 85% EBIT 614 774 834 1,112 887 Net Income 290 338 408 539 445 Balance Sheet Total Assets 8,645 10,864 12,713 15,146 17,527 To
Slide 27: Investment Programme
Investment Programme XII Plan – Capital Outlay US$ bn Period Description Amount CAPEX Plan US$ 11.0 bn 2016–2017 XI Plan $4.2 2012–2013 (2007-2012) CAPEX made till $4.0 US$ 9.68 bn 9-Feb’12 XII Plan Total CAPEX (2012-2017) US$ 20.0 bn Plan 2013–2014 Projects/ 2015–2016 $3.8 Capital Outlay $4.0 Schem
Slide 28: Funding Requirement for XII Plan
Funding Requirement for XII Plan Investment planned in Debt-Equity ratio of 70:30 Equity (US$ 6.0bn) Debt (US$ 14.0bn) Internal Accruals US$ 2.8 billion already tied up from FPO proceeds + Multilateral Agencies, The World Bank & ADB and Supplier’s Credit Domestic Bonds/ ECBs ― Raised as per Annual I
Slide 29: Appendix
Company Overview Key Highlights Future Business Plan Financial Summary & Investment Programme Appendix POWERGRID – One Nation, One Grid
Slide 30: Key Competitive Strengths
Key Competitive Strengths Leadership position in the Indian power sector One of the world's Leading Power Transmission Utility - 90,100 ckm line with 145 Substations as on Dec 31,2011 Strategic position in Indian Power Sector Regulated tariff structure and POWERGRID’s superior operating efficiency S
Slide 31: Commitment Towards Green Environment
Commitment Towards Green Environment Environment and Social Policy & Procedure (ESPP) based on principles of Avoidance, Minimization and Mitigation Certified to Social Accountability Standard (SA-8001: 2008) Specially designed high- rise towers (75m) to reduce tree cutting Application of Multi circu
Slide 32: Commitment to Community
Commitment to Community Besides addressing rehabilitation & Corporate Social Responsibility resettlement issues and community CSR initiatives in the Areas of: development through ESPP, POWERGRID has formulated its ‘Corporate Social Responsibility policy’ (CSR Policy) which addresses: Education, Self
Slide 33: Shareholding pattern as on 31st December 2011
Shareholding pattern as on 31st December 2011 Individuals 5% Bodies Corporate 5% MF/FI/IC 8% Gol 69% Fll 13% Note: MF - Mutual Funds, FI - Financial Institutions / Banks, IC - Insurance Companies, FII - Foreign Institutional Investors POWERGRID – One Nation, One Grid 33
Slide 34: Thank You
Thank You POWERGRID – One Nation, One Grid
Power Grid Corporation of India — Investor Presentation (February 2012) on 6ix