Tata Power Company Limited · NSE:TATAPOWER
Tata Power — The Tata Power Company — Investor Presentation (November 2023)
62 slides from Tata Power's investor presentation, Nov 28, 2023
Slide 1: Presentation to Analyst/Institutional Investors
G TATA November 28, 2023 BJ/SH-L2/ BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra-Kurla Complex Dalal Street Bandra (East) Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 500400 Symbol: TATAPOWER De
Slide 2: Powering India Today and Tomorrow
Powering India Today and Tomorrow
Slide 3: ifhis document and its contents should not be forwarded, This presentation is not an
. .. ifhis document and its contents should not be forwarded, This presentation is not an offer of securities for sale in ttie t:Jnitea States. Securities may not 15e offerea or sold in ttie United States al5sent registration, or an exemption from registration, under the U.S. Securities Act of 1933,
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04 11 37 48 56
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Slide 6: India's largest vertically-integrated power company
G TATA POWER TATA India's largest vertically-integrated power company I New-age Energy Solutions I Generation 9,281 MW 8,860Mw 5,713 Ckm Clean & Green Energy Thermal energy generation Transmission capacity (Including 3,760MW in pipeline) (Installed capacity) (Including 1,330Ckm in pipeline) 12.4 Mn
Slide 7: Assets spread across India
G TATA POWER TATA Assets spread across India ... Capacity Mix 8,860MW 1,007 MW 880 MW (Domestic+ Thermal Wind Hydro Internationa I) 14,381 MW 443MW 1 MW 3,760MW Waste Heat Solar Renewable capacity Total Recovery /BFG under construction Distribution of installed capacity (Domestic & International)(%)
Slide 8: ... as well as a few Global locations
G TATA POWER TATA ... as well as a few Global locations Georgia, Adiaristsgali Bhutan, Dagachhu 187 MW 50% 126Mw 26% Installed capacity TPCL stake Installed capacity TPCL stake Indonesia Coal Mines Coal mines Tata Power Share% Kaltim Prima Coal (KPC) 30% Baramulti Suksessarana (BSSR) 26% Zambia, lte
Slide 9: Generating consistent value over the years
G TATA POWER TATA Generating consistent value over the years ... Revenue(~ in Cr) EBITDA (~ in Cr) Underlying EBITDA(~ in Cr) 30,446 6,092* 6,694** H1FY24 H1FY24 H1FY24 FY23 56,033 FY23 10,068 FY23 13,268 FY22 FY22 FY22 FY21 FY21 FY21 FY20 FY20 8,317 FY20 9,269 Reported PATA(~ in Cr) ROE (0A>) EPS (
Slide 10: With rising contribution from our Core businesses
G TATA POWER TATA ... with rising contribution from our Core businesses* Revenue (~ in Cr) EBITDA (~ in Cr) Reported PAT (~ in Cr) H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 20/o c - - ~ 1470/o D ~ -220/oC ----, 9960 9,800 1 748 1,370 2,107 1 3,693 1s% C- - 4,235 - 853 14% D------" 1,721 •,,k -
Slide 11: Operational excellence fueling benchmark results
G TATA POWER TATA Operational excellence fueling benchmark results Generation availability(%) Plant load or capacity utilisation factor(%) Thermal Mundra MO Hydro Wind Solar Thermal Mundra MO Hydro Wind Solar (excl. Mundra) (excl. Mundra) ■ FY22 ■ FY23 ■ Hl FY24 10
Slide 12: Indian power sector: Witnessing strong tailwinds
TATA POWER Indian power sector: Witnessing strong tailwinds
Slide 13: The power sector is set to grow as India grows
G TATA POWER TATA The power sector is set to grow as India grows Rising population and Strong Correlation seen India has one of the lowest All India coal-based urbanisation to drive demand between GDP and Power power consumption per generation Plant Demand growth (%) capita (in units) Load Factor (P
Slide 14: Rising power demand has resulted in power deficit inching up
G TATA POWER TATA Rising power demand has resulted in power deficit inching up, especially during non-solar hours Peak demand in solar Peak demand shortage in Peak demand (GW) and Energy requirement (BUs) and hours (GW) non solar hours (MW) Peak power deficit (%) Energy Deficit(%) N IO 10.0 400 10.0
Slide 15: • 'I, _ _ _ _ _ _. . :,; , I ,. 1•1•
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Slide 16: Clean & Green Energy to lead the way as India targets 500GW
G TATA POWER TATA Clean & Green Energy to lead the way as India targets S00GW RE capacity by 2030 Immense Potential compared to Clean & Green to account for Clean & Green to account for 44% currently Installed capacity of 132 GW* 68% of capacity in 2032 from of Generation (TWh) in 2032 from 43% in F
Slide 17: Strong Pipeline: 500GW 2030 target implies ~45GW additions each year
G TATA POWER TATA Strong Pipeline: S00GW 2030 target implies ~45GW Capacity additions each year on an average Renewable energy capacity 500 GW by 2030 Solar Wind Storage target of 500 GW by 2030 Aspirational capacity addition target Biomass Hydro Small Hydro r 500 500 179GW I g Installed by Oct, 202
Slide 18: RPO to spur renewable adoption on the demand side
G TATA POWER TATA RPO* to spur renewable adoption on the demand side RPOs to be increased from 25% in FY23 to 43% SERCs are required to by FY30 by Centre 1 enforce national RPO 1 RPO components trajectory(%) 1 1 1 1 Electricity Amendment Bill Non-compliance to be penalised at -Mandating ~0.25-0.35/
Slide 19: Record-low module prices and attractive RE tariffs should boost RE capacity additions
G TATA POWER TATA Record-low module prices and attractive RE tariffs should boost RE capacity additions Minimum e-reverse auction tariff in India Renewable energy auction volumes (GW) 3.11 2.67 2 51 2.7 9 2.69 2 •77 2.69 ....-,,• • , . --c................... 2.53 ..... 3 07 2.44 • .......,,••, ·•=:.
Slide 20: Clean & Green capacity target: >20GW by 2030
G TATA POWER TATA Clean & Green capacity target: >20GW by 2030, accounting for 70% of total Targeting 1SGW+ Clean & Green Capacity by 2027 (GW) What we have achieved ~1_ _ _ _,g 20+ 15+ >5.5 GW Clean and green Capacity 5.5 Current 2027 2030 >3.7 GW Source: Tata Power Estimates Under construction Ren
Slide 21: TPSSL revenues to rise with declining contribution from third-party EPC
G TATA POWER TATA TPSSL revenues to rise with declining contribution from third-party EPC What we have achieved fl 7,000Cr+ Revenue projected for FY27 with rising share from Captive projects (f '000 er.) 4,391* MW Order Book >fl 8,700* Cr 10.6 Order Book What we wish to achieve FY24* 2027 2030 >f 20
Slide 22: Annual additions of Rooftop & Group Captive in India
G TATA POWER TATA Annual additions of Rooftop & Group Captive in India - Adding to RE growth story Strong offtake across segments; 19% CAGR in residential and 20% for Group Captive till FY27 Demand drivers Compelling economics Rooftop: Reduces electricity bills by Rooftop* 4-yearCAGR Group Captive 4
Slide 23: Tata Power Solar Rooftop: Differentiators to sustain Pole position
G TATA POWER TATA Tata Power Solar Rooftop: Differentiators to sustain Pole position 404 MW Rooftop capacity TATA POWER LA 1 s ldbl VARIED OFFERING FINANCING added in FY23 (%) • Presence across all customer • Multiple tie-ups offer several segments options to customers • EPC + Opex Models • Innovati
Slide 24: Tata Power EZ Charge- Only CPO in India to operate across four segments
G TATA POWER TATA Tata Power EZ Charge- Only CPO* in India to operate across four segments Home Charging Fleet Charging Brief-Tie-up with OEMs for Brief-Tie-up with fleet operators for home charging installations either deployment of charging for their customers infrastructure or accessibility of pu
Slide 25: Tata Power EZ charge- Stellar growth in home and public charging
G TATA POWER TATA Tata Power EZ charge- Stellar growth in home and public charging segments Home charging installation • Market leadership in public charging segment with ~55% 65,640 share and ~85% share in home charger installations 38,899 • Exponential growth in-line with increasing EV adoption ov
Slide 26: Tata Power EZ charge: Stellar growth in E-bus and fleet charging
G TATA POWER TATA Tata Power EZ charge: Stellar growth in E-bus and fleet charging segments E-bus Charging Stations 592 • Segment with assured utilisation and revenues/profitability • Over 100% growth in first 8 months of FY24 in bus 234 segment and 60°/4 in fleet segment, healthy pipeline in FY19 F
Slide 27: Tata Power EZ Charge: Targeting >10k Public and >200k Home chargers by FY28
G TATA POWER TATA Tata Power EZ Charge: Targeting > 1Ok Public and >200k Home chargers by FY28 Catering to every segment Differentiated strategy for the 3 businesses 4,900+ Energized Home Charging Captive Charging Public Charging - Public, Semi- more than (Private 4W) (Shared 4W & Bus) (Private & Sh
Slide 28: 4.3GW Cell & Module facility in Tamil Nadu
G TATA POWER TATA Contributing to India's Atmanirbhar ambition with our 4.3GW Cell & Module facility in Tamil Nadu Estimated capacities expected to Proposed addition of Module capacity by large Tata Power's first module out from ramp-up by FY26 In India (GW) manufacturers (> 1GW) by 2026 4.3 GW of C
Slide 29: Transmission and distribution: Long runway for Growth
«a TATA POWER TATA Transmission and distribution Long runway for Growth
Slide 30: Indian transmission: A USD30 Bn opportunity (till FY30)
G TATA POWER TATA Indian transmission: A USD30 Bn opportunity (till FY30) USD30 Bn transmission Capex Pickup in transmission lines installation anticipated between FY24-30E (USO Bn) Transmission lines (in Ckt km) 800 600 ■ Renewables 400 ■ Thermal 200 ■ Distribution 0 FY17 FY18 FY19 FY20 FY21 FY22 F
Slide 31: Recent wins to expand Tata Power's transmission portfolio
G TATA POWER TATA Tata Power - Recent wins to expand Tata Power's transmission portfolio What we have achieved Declared L1* on 4 th October 2023 Declared L1* on 7th November 2023 Project: Project: 4,383 Ckm Jalpura Khurja Power Transmission Limited (80 Ckm) Rajasthan Phase IV Part C (344 Ckm) Operat
Slide 32: India Distribution: On the mend but concerns remain
G TATA POWER TATA India Distribution: On the mend but concerns remain All India AT&C losses (%) have declined due to LPS and ACS -ARR gap has narrowed but continues to persist RDSS schemes All India basis Overall ACS-ARR GAP \0 7 6.2 6.2 6.3 12.00% \0 "1 ~ 6 N l.(') l.(') N r--. ~ 6 5.5 5.5 • • ••••
Slide 33: India Distribution: Several states continue to display high AT&C losses
G TATA POWER TATA India Distribution: Several states continue to display high AT&C losses and remain in financial stress State-wise AT & C losses(%) for FY22 RDSS and LPS reduce DISCOM Dues(~ in Cr) Arunachal Pradesh 49 1,05,330 Nagaland 1,02,780 41 Mizoram 39 83,716 Meghalaya 36 Jharkhand 34 59,127
Slide 34: Private DISCOMs in a better shape; Tata Power has 50% share
G TATA POWER TATA Private DISCOMs in a better shape; Tata Power has 50% share in Private DISCOMs AT&C losses (State vs Private)(%) ARR-ACS GAP (State vs Private) (~/unit) q M 'Sf; N 0 M M ci N ci I I ~ ci ■ ci I ····••••••••••• 20.7 I \0 ci I 00 ci \0 ci I 00 ci ■ N ci I I I FY17 FY18 FY19 FY 20 FY
Slide 35: TPDDL: Solid turnaround for the past two decades
G TATA POWER TATA TPDDL: Solid turnaround for the past two decades TPDDL turnaround in Numbers 60 50 ...... 47 •6 45.4 ...... 40.9 48.1 47.8 ...... 40 44_g. • 35.4 ··. .... •... •• .... 31.1 fS0,000 Cr 30 33.8 ••• ••• 22 Estimated saving to the Government • ••• •• 20.4 18 7 (since takeover in FY02)
Slide 36: Odisha DISCOMs: Significant improvement in AT&C losses
G TATA POWER TATA Odisha DISCOMs: Significant improvement in AT&C losses in a short span of time Tata Power Central Odisha Distribution Ltd. (TPCODL) Tata Power Western Odisha Distribution Ltd. (TPWODL) I 30 20.4 30 213.7 213.7 23.7 23.7 22.0 · · · · · · ··•······•. 25 ..... .... ·1 ·............ ••
Slide 37: Levers of Odisha Turnaround Story
G TATA POWER TATA Levers of Odisha Turnaround Story Improving Reliability Enhancing Technology Consumer Commercial & Quality of Power Safety Culture deployment Centricity focus Predictive Analysis Drone surveillance for overhead Innovative Tech - Trolley 24 x 7 call centre Arrear Collections network
Slide 38: II II
II II
Slide 39: 97GW of Pumped Hydro (PSP) potential in India
G TATA POWER TATA 97GW of Pumped Hydro {PSP) potential in India with c40GW in Western India Region-wise distribution of PSP potential and Current status of pumped storage hydro plants in India current PSP installed capacity (MW) in India Status No of projects Installed capacity (MW) In Operation "'"
Slide 40: Why Pumped Storage Hydro plants?
G TATA POWER TATA Why Pumped Storage Hydro plants? Pumped Storage Hydro - Concept When demand increases, or wind/solar production drops, .,,.____ _ _ _ _ _ _ _ _ _---, Benefits of PSP water runs downhill from upper reservoir Green Storage More stable, less variable supply results from adding ... ...
Slide 41: 1,000 MW Bhivpuri PSP - Key highlights
G TATA POWER TATA 1,000 MW Bhivpuri PSP (Brownfield Project) - Key highlights 1,000Mw Bhivpuri PSP Type Existing Off-stream Upper Reservoir Thokarwadi - 352 MCM (million cubic meters) Lower Reservoir New-5 MCM Daily Generation 6,000 MWhr Capital Investment ~4,700 Crores Timeline: Start by Mid-2024 C
Slide 42: 1,800 MW Shirawta PSP - Key highlights
G TATA POWER TATA 1,800 MW Shirawta PSP {Brownfield Project) - Key highlights 1,800Mw Shirawta PSP Type Off-stream Upper Reservoir New-15 MCM Lower Reservoir Existing Shirawta Dam 197 MCM Daily Generation 10,800 MWhr Capital Investment ~7,850 Crores Timeline: Start by Mid-2024 Completion by 2028 41
Slide 43: Our Pumped Storage (PSP) projects: Current Status
G TATA POWER TATA Our Pumped Storage {PSP) projects: Current Status FSR submitted to CEA for Connectivity application made approval. Project layout to CTU; First consultation approved by CEA for survey & meeting held investigation (S&I}. Investigation in progress. Terms of Reference Order placed for
Slide 44: Domestic hydro capacity to rise by 7x+ post commissioning of PSP Projects
G TATA POWER TATA Domestic hydro capacity to rise by 7x+ post commissioning of PSP Projects Hydro overview: Plant capacity addition (MW) 3500 Shivpuri Shirwata 3247 .. . Units 1800MW r Upgraded Units .. . 3000 to 12 MW 2500 .. . .. 2000 Khopoli Shivpuri Shira Khopoli Shira Shira Shira Khopoli Shira
Slide 45: Additional potential of 9GW in the future
G TATA POWER TATA Additional potential of 9GW in the future should help support RTC of ~30GW 573 MCM Mulshi dam, 72 MCM Walwhan dam, Raigad, 353 MCM Thokarwadi dam, Bhivpuri 3,000Mw, 3,000Mw, 3,000Mw, Nenavali, Mulshi dam Upper Reservoir Kataldhara, Walwhan dam Upper Reservoir Poltalpali, Thokarwadi
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Slide 47: Tata power to deploy 45% of its capital to renewable sector
G TATA POWER TATA Tata power to deploy 45% of its capital to renewable sector Estimated capex of around f60,000 Cr till FY27 45% of the capex to be spent on renewables between FY24-27e f21,000- f22,000- f19,000- 22,000Cr 23,000Cr 20,000Cr ■ Conventional Generation ■ Conventional Generation, f14,000-
Slide 48: Confident about growing profits with rising share from core businesses
G TATA POWER TATA Confident about growing profits with rising share from core businesses FY23 FY27E Share of EBITDA (%) Revenue 1 1 f56,033 Cr 0 EBITDA FY23 *FY27E ■ Renewables ■ Conventional Generation, Coal & Shipping ■ T&D ■ Other f10,068 Cr 0 * EBITDA contribution from PSP shall start from FY28
Slide 49: Sustainability: At the core of all that we do
TATA POWER Lg TATA Sustainability: At the core of all that we do
Slide 50: Our sustainability aspirations
G TATA POWER TATA Our sustainability aspirations ... Become carbon net zero before 2045 Become water neutral before 2030 Zero waste to landfill before 2030 No Net Loss to Biodiversity Leverage technology to create the 'Utility of the Future' (IOT, Smart Grids, BESS, Green H2, robotic panel cleaning
Slide 51: Taking leaps towards our ESG goals
G TATA POWER TATA Taking leaps towards our ESG goals Baseline Target Particulars Description 1------------1------l------~----i On going actions Value (FV23) Vear Value Vear Clean & Green Portfolio 70% 2030 • 38% RE portfolio as of June 2023 • SBTi Commitment Net Zero • Renewable Portfolio Growth 38.
Slide 52: Gradually improving our ESG ratings
G TATA POWER TATA Gradually improving our ESG ratings 2023 2022 2021 2020 2019 2018 ~CDP DISCLOSURE INSIGHT ACTION 0 B B C C D D CDP - Climate Change ~CDP DISCLOSURE INSIGHT ACTION 0 B B B C F F CDP-Water Dow Jones 0 67 67 67 48 15 Sustainability Indexes DJSI MSCl 8 0 BBB BBB BB BB BB BB MSCI SUSTAI
Slide 53: Achieving 100% clean power generation by FY 2045
G TATA POWER TATA Achieving 100% clean power generation by FY 2045 2015 2023 2030 2045 Largely a coal-based company, Transitioning towards a Clean & Green Phasing out thermal having capacities to fulfil the clean and green portfolio Capacity will account portfolio before 2045 energy demands of a thr
Slide 54: Empowering Communities
G TATA POWER TATA Empowering Communities 3.7 Mn Touching lives Public Private Improving Far Reaching Partnerships access Impact on (Collaboration & & creating Community Leverage) opportunities and Co- 85+ ownership Districts in 17 states Optimal Green Technology *'Tata Power has taken a major leap i
Slide 55: Well-established governance framework
G TATA POWER TATA Well-established governance framework Our CSR and Sustainability Committee at the Board level guides the strategy, and the Apex Leadership Team enables its impactful implementation Leadership and Oversight on Sustainability - - - - - - - - - - - Advocacy - - - Leadership Initiative
Slide 56: Robust Governance Structure in place
G TATA POWER TATA Robust Governance Structure in place Audit Committee Governance policies • Tata Code of Conduct • Code of Conduct for Independent Directors • Code of Conduct for Non-Executive Directors Nomination and • Related Party Transactions Policy, Framework & Guidelines Remuneration Committe
Slide 57: What sets us apart
What sets us apart
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Slide 59: Most vertically integrated and diversified power portfolio in India
G TATA POWER TATA Most vertically integrated and diversified power portfolio in India T t p r C m n L" it d (TPCL} H 1 fy 24 Revenue ({ in Cr) EBITDA {{ in Cr) Net Debt {{ in Cr) PAT*** {{ in Cr) a a owe O pa Y •m e 30,446 6,092 36,609 2, 158 Thermal generation, coal & RenewablesA Transmission & dis
Slide 60: Well-capitalised with one of the strongest Balance Sheets
G TATA POWER TATA Well-capitalised with one of the strongest Balance Sheets Net Debt(~ in Cr) Relatively smaller rise in Cost of Debt (CoD) compared to rise in Repo rate (%) FY19 FY20 44,811 43,559 9.00 8.00 7.00 •······· • T . •··•··••··•· .. ••••••••• . . •••••••••••••• . . ·•· . .............. ••
Slide 61: Well poised to achieve our aspirations
G TATA POWER TATA Well poised to achieve our aspirations PSP Projects to add Double Revenues, EBITDA and 2.8GW to our Clean profitability by FY27 with rising and Green Energy contribution from our Core Businesses - Portfolio Generation, Renewable, Transmission and Distribution, in India Clean & Gree
Slide 62: Tata Power Investor Relations
TATA POWER ajesh Lachhani_ dem PIG LE: ‘or Relations y 3 Email: rajesh.lachhani@tatapower.com M: +91 9742947821 =
The Tata Power Company — Investor Presentation (November 2023) on 6ix