Tata Power Company Limited · NSE:TATAPOWER
Tata Power — Investor Presentation (November 2023)
61 slides from Tata Power's investor presentation, November 2023
Slide 1: Powering India Today and Tomorrow
Powering India Today and Tomorrow
Slide 2: Disclaimer
TATA POWER TATA Disclaimer This document does not constitute or form part of and should not be construed as a prospectus, offering circular or offering memorandum or an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or af
Slide 3: Agenda
Slide 4: The Tata Power story
Slide 5: India's largest vertically-integrated power company
TATA POWER India’s largest vertically-integrated power company fd 9,281 mw Clean & Green Energy (Including 3,760MW in pipeline) fd 8,860 mw Thermal energy generation (Installed capacity) TATA New-age Energy Solutions l ; | 5,71 3 Ckm Transmission capacity (Including 1,330Ckm in pipeline) ; | 12.4 mn
Slide 6: Assets spread across India
TATA POWER Assets spread across India... 9 9 eee 3 i3 f Oo @ 9 8 9 @ 9 ie © Transmission assets q bd to} 9 Distribution assets ® @ 9 9 Generation assets C) « TATA Capacity Mix 8,860 mw 1 ,007 Mw (Domestic + Thermal Wind Hydro International) 14,381 MW 443 mw 3,191 mw 3,760 mw Waste Heat Solar Renewab
Slide 7: BSSR AGM revenue, EBITDA and PAT
BSSR AGM 5.3 12.6 5.1 12.3 Revenue (USDm) 6,791 371 813 EBITDA (USDm) 1,669 150 213 *PAT (USDm) 1,140 110 153
Slide 8: Generating consistent value over the years
TATA POWER Generating consistent value over the years... Revenue (? in Cr) 30,446 HIFY24 FY23 56,033 FY22 42,576 FY21 33,239 FY20 28,948 Reported PATA ( in Cr) 2,158 HIFY24 FY23 3,810 FY22 2,156 FY21 1,439 FY20 1,316 EBITDA ( in Cr) 6,092" HIFY24 FY23 10,068 FY22 8,192 FY21 7,978 FY20 8317 ROE (%) 1
Slide 9: With rising contribution from our core businesses
TATA POWER ..-With rising contribution from our Core businesses* Revenue ( inCr) H1 FY23 H1FY24 Fliminations/ Qthers Consolidated performance *Coal, Overseas Hydro Assets, Stake in Tata Projects & Nelco considered as Non-core EBITDA (incr) H1 FY23 H1 FY24 147% 2,107 853 = i 14% EY 1513 1,721 28% EY
Slide 10: Operational excellence fueling benchmark results
« TATA POWER TATA Operational excellence fueling benchmark results Generation availability (%) Plant load or capacity utilisation factor (%) 100 100 Wind Solar Thermal Mundra MO Hydro Wind Solar Thermal (excl. Mundra) (excl. Mundra) © ry22 Miry23 Mi wiry24 10
Slide 11: Indian power sector: Witnessing strong tailwinds
TATA POWER Indian power sector: Witnessing strong tailwinds
Slide 12: 1.40 1.43 1.24 1.06 0.87 0.70 0.56 0.45
1.40 1.43 1.24 1.06 0.87 0.70 0.56 0.45
Slide 13: Rising power demand has resulted in power deficit inching up
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 (%) Ss e 8 5 10.0 366 5
Slide 14: Renewable energy: Our key growth driver
TATA POWER ¥ TATA Renewable > , energy a Our key growth driver
Slide 15: Clean & Green Energy to lead the way as India targets 500GW
TATA POWER TATA Clean & Green Energy to lead the way as India targets 500GW RE capacity by 2030 Immense Potential compared to currently Installed capacity of 132 GW* 749 302 210 61 | |. 23 1 2 5 Solar Ground Wind SolarRooftop Biomass. Small Hydro Mounted HB Potential (GW) [MP Installed Capacity in G
Slide 16: Strong pipeline: 500GW 2030 target implies ~45GW additions each year
TATA POWER « TATA Strong Pipeline: 500GW 2030 target implies ~45GW Capacity additions each year on an average 500 GW by 2030 Aspirational capacity addition target 179 GW Installed by Oct, 2023 72 GW Solar 44 GW Wind 11 GW Biomass 5 GW Small Hydro 47 GW Hydro Power In pipeline 7 GV of projects under
Slide 17: RPO to spur renewable adoption on the demand side
TATA POWER RPO* to spur renewable adoption on the demand side NN Electricity Amendment Bill -Mandating National RPO & compliance by SERC _7 *Renewable Purchase Obligation (RPO) SERCs are required to enforce national RPO (— >) Non-compliance to be penalised at © — %0.25-0.35/ kWhr in 1st year &% 0.35
Slide 18: Record-low module prices and attractive RE tariffs should boost RE capacity additions
TATA POWER TATA Record-low module prices and attractive RE tariffs should boost RE capacity additions Minimum e-reverse auction tariff in India 2.6 244 Prrereriritity 244 2.44 2 2 i E Solar Source: CEA, Bloomberg, Avendus Spark Research Polysilicon and module prices at multi-year lows (USD/Kg) N 8 J
Slide 19: Clean & Green capacity target: >20GW by 2030
TATA POWER Clean & Green capacity target: >20GW by 2030, accounting for 70% of total What we have achieved >5.5 cw Clean and green Capacity >3.7 cw Under construction What we wish to achieve >20 cw (70% by 2030 and 100% before 2045) Clean and Green Capacity As on 30September, 2023 Targeting 15GW+ Cl
Slide 20: TPSSL revenues to rise with declining contribution from third-party EPC
TATA POWER TPSSL revenues to rise with declining contribution from third-party EPC What we have achieved 4,391* mw Order Book >F1 8,700* Cr Order Book What we wish to achieve >*20,000* « Revenue in FY30 Includes large scale utility, residential, C&l as well as group captive As on 30September, 2023 =
Slide 21: Solar market estimates by segment
• • • • • • Note: Market estimates as per Bridge To India research, Tata Power estimates *Rooftop segment includes Commercial & Industrial (C&I)
Slide 22: Tata Power Solar Rooftop: Differentiators to sustain pole position
TATA POWER Tata Power Solar Rooftop: Differentiators to sustain Pole position 404 MW Rooftop capacity added in FY23 (%) @ Residential 77 23 a cal %641 Cr order booked in H1 FY24 (%) 21 M Residential 79 mC&l * Bifacial modules on roof * Innovative products like hybrid, balcony, artefacts, solar tree
Slide 23: Tata Power EZ Charge: Only CPO in India to operate across four segments
TATA POWER TATA Tata Power EZ Charge- Only CPO* in India to operate across four segments *Charge Point Operator Home Charging Brief-Tie-up with OEMs for home charging installations for their customers Services-Installation & commissioning Service Public Charging Brief-Dependence on the current EV pe
Slide 24: Tata Power EZ Charge: Stellar growth in home and public charging
TATA POWER 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 over the
Slide 25: Tata Power EZ Charge: Stellar growth in E-bus and fleet charging
TATA POWER Tata Power EZ charge: Stellar growth in E-bus and fleet charging segments E-bus Charging Stations * Segment with assured utilisation and 592 revenues/profitability * Over 100% growth in first 8 months of FY24 in bus 234 segment and 60% in fleet segment, healthy pipeline in i execution * H
Slide 26: Tata Power EZ Charge: Targeting >10k Public and >200k Home chargers by FY28
TATA POWER TATA Tata Power EZ Charge: Targeting >10k Public and >200k Home chargers by FY28 Catering to every segment 4,900+ Energized Public, Semi- more than public and 442+ cities & Captive CPs towns 460+ Ultra 65,000+ Home = high Capacity Chargers Bus Chargers. installations energized in multiple
Slide 27: 4.3GW Cell & Module facility in Tamil Nadu
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 Cell
Slide 28: Transmission and distribution: Long runway for growth
<p TATA POWER TATA Transmission and distribution Long runway for Growth
Slide 29: Indian transmission: A USD30 Bn opportunity
TATA POWER TATA Indian transmission: A USD30 Bn opportunity (till FY30) USD30 Bn transmission Capex anticipated between FY24-30E (USD Bn) Pickup in transmission lines installation Transmission lines (in Ckt km) 800 600 IB Renewables 400 { Thermal 200 i 7 BB Distribution 0 FY17 FYI8 FY19 FY20 Fy21 FY
Slide 30: Recent wins to expand Tata Power's transmission portfolio
TATA POWER Tata Power - Recent wins to expand Tata Power's transmission portfolio What we have achieved 4,383 cum Operational Capacity fo] 906 ckm Under construction Total Capex: %1,610 Cr fd 424 cum Declared L1 bidders Total Capex: $2,294Cr *Lowest bidder Declared L1* on 4'* October 2023 Project: J
Slide 31: India Distribution: On the mend but concerns remain
TATA POWER TATA India Distribution: On the mend but concerns remain All India AT&C losses (%) have declined due to LPS and RDSS schemes All India basis © o n n Na uo wo a aq 5 5 © nO « 3 2 8 wy © be 2 BR | | |] | XN om + © © RK ® a @ «= s 2 ¢ 2» 2 8B #2 @ B & SF FS F FS FS FS FS SF Sf SF zo & & & &
Slide 32: India Distribution: Several states continue to display high AT&C losses
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 Arunachal Pradesh Nagaland Mizoram Meghalaya Jharkhand Tripura Odisha sikkim Uttar Pradesh Manipur Madhya Pradesh Chhattisgarh °(352) TT 17 Ass
Slide 33: Private DISCOMs in a better shape; Tata Power has 50% share
« 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) x - 2 _ ey a 3 ” 2 s a 3 - s | a = = 223 - a — g Ro} Ro} . cy . 2 ? ° 2 2 g a a FYI7 FY18 FY19 FY 20 FY 21 = = = S s I state [Pr
Slide 34: All India average: 16.4% (FY21-22)
All India average : 16.4% (FY21-22)
Slide 35: Odisha DISCOMs: Significant improvement in AT&C losses
TATA POWER TATA Odisha DISCOMs: Significant improvement in AT&C losses in a short span of time Tata Power Central Odisha Distribution Ltd. (TPCODL) FY20. FY21 FY22 FY23> FY24 FY25 FY26 FY27 FY28 Tata Power Northern Odisha Distribution Ltd. (TPNODL) 253° 23.13 11.36 = = = FY21 FY22 FY23) FY24 FY25 FY
Slide 36: Levers of Odisha turnaround story
TATA POWER Levers of Odisha Turnaround Story TATA iB i ~ Se Improving Reliability Enhancing Technology Consumer Commercial & Quality of Power Safety Culture deployment Centricity focus Predictive Analysis Drone surveillance for overhead Innovative Tech -Trolley 24x 7 call centre Arrear Collections —
Slide 37: Pumped hydro plants: Our emerging growth lever
Slide 38: 97GW of Pumped Hydro potential in India
TATA POWER 97GW of Pumped Hydro (PSP) potential in India with c40GW in Western India Region-wise distribution of PSP poten’ current PSP installed capacity (MW) in India | and Current status of pumped storage hydro plants in India TATA In Operation 3 Working in Pumping Mode 3,305 a Not working in Pum
Slide 39: Why Pumped Storage Hydro plants?
TATA POWER TATA Why Pumped Storage Hydro plants? Pumped Storage Hydro - Concept When demand increases, or wind/solar production drops, water runs downhill from upper reservoir Benefits of PSP Green Storage Upper Reservoir More stable, less variable supply results from adding electricity from turbine
Slide 40: 1,000 MW Bhivpuri PSP - Key highlights
TATA POWER 1,000 MW Bhivpuri PSP (Brownfield Project) - Key highlights fd 1,000 mw 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 Comp
Slide 41: 1,800 MW Shirawta PSP - Key highlights
TATA POWER 1,800 MW Shirawta PSP (Brownfield Project) - Key highlights Shirawia PSP 1800 MW Shirawta Plant; pe fe : Sexe Shirawta PSP Pune, Maharashtra Bs, : i Type Off-stream Upper Reservoir New -15 MCM Lower Reservoir Existing Shirawta Dam 197 MCM Daily Generation 10,800 MWhr Capital Investment 7,
Slide 42: PSP project approval and development status
FSR submitted to CEA for approval. Project layout approved by CEA for survey & investigation (S&l). Investigation in progress. Connectivity application made to CTU; First consultation meeting held Terms of Reference approved by MoEFCC Detailed Project Report (DPR) preparation in progress : Target Ja
Slide 43: Domestic hydro capacity to rise by 7x+ post commissioning of PSP projects
TATA POWER Domestic hydro capacity to rise by 7x+ post commissioning of PSP Projects Hydro overview: Plant capacity addition (MW) eed Bhivpuri Units 3000 Upgraded to 12 MW 2500 2000 - . - - Khopoli Bhivpuri Bhira Khopoli Bhira Bhira itl peel Gitte Bhivpuri 5*8 MW esmw) = S*18MW | 1*8MW)1#22MW) ‘| Se
Slide 44: PSP upper and lower reservoirs
573 MCM Mulshidam, : 72 MCI Walwhan dam, Raigad, 353 MCM Thokarwadi dam, Bhivpuri 3,000 um, 3,000 mu, 3,000 mu, Nenavali, Mulshi dam Upper Reservoir Kataldhara, Walwhandam Upper Reservoir Poltalpali, Thokarwadidam Upper Reservoir 6 MCM_ Kundali dam, Khopoli 12 MCM Lonavala dam, Khopoli
Slide 45: Looking ahead: Key targets for FY27
Slide 46: Tata Power to deploy 45% of its capital to renewable sector
TATA POWER TATA Tata power to deploy 45% of its capital to renewable sector Estimated capex of around 60,000 Cr till FY27 %21,000- %22,000- 19,000- 22,000Cr 23,000Cr 20,000 Cr %14,000- 15000 Cr i FY24 FY25 FY26 FY27 Source: Tata Power Estimates *Optional Capex of 712,000 Cr subject to TBCB wins in t
Slide 47: Confident about growing profits with rising share from core businesses
TATA POWER Confident about growing profits with rising share from core businesses FY23 FY27E Revenue 56,033 Cr M>) EBITDA =10,068 Cr ia PAT (before Minority) =3,810Cr #>) Share of EBITDA (%) 34 1 45 20 FY23 *FY27E I Renewables I Conventional Generation, Coal & Shipping [ji T&D I other * EBITDA contr
Slide 48: Sustainability: At the core of all that we do
TATA POWER Lg TATA Sustainability: At the core of all that we do
Slide 49: Our sustainability aspirations
TATA POWER Our sustainability aspirations As on 30September, 2023 Become carbon net zero before 2045 Education - Train 35 lakh+ youth as conservation and STEM education champions by 2028 Improve Sustainability Disclosures and get listed in DJSI Emerging Markets list by 2027 Become water neutral befo
Slide 50: Taking leaps towards our ESG goals
TATA POWER Taking leaps towards our ESG goals Description Value (FY23) TATA On going actions wy vse | wy Clean & Green Portfolio 16%" 2015 70% 2030 * 389% RE portfolio as of June 2023 + SBTi Commitment Net Zero “ * Renewable Portfolio Growth (absoltteacartorjenissons) Seo tiilbsa Temes e024 oor 2045
Slide 51: Gradually improving our ESG ratings
TATA POWER Gradually improving our ESG ratings 2023 2022 2021 2020 2019 2018 CDP - Climate Change CDP — Water Dow Jones 67 67 67 2 48 15 Sustainability Indexes DJs! M S Cc | BBB BBB BB BB BB BB MSCI l ‘S) SUSTAINALYTICS 40.9 a2 38.6 7 7 7 Sustainalytics As on 30September, 2023 51
Slide 52: Achieving 100% clean power generation by FY 2045
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 throu
Slide 53: Empowering Communities
TATA POWER Empowering Communities CSR Mission To work with communities in the vicinity of our operations or as specially identified, to gain their acceptance of co-existence by addressing salient development imperatives The key interventions for target communities are focused in the following themat
Slide 54: Well-established governance framework
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 Initiatives that are based with care
Slide 55: Robust Governance Structure in place
TATA POWER Robust Governance Structure in place | Shareholders As on 30September, 2023 Audit Committee Nomination and Remuneration Committee ——— Stakeholders Relationship Committee CSR & Sustainability Committee Risk Management Committee Governance policies * Tata Code of Conduct * Code of Conduct f
Slide 56: What sets us apart
What sets us apart
Slide 57: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 58: Most vertically integrated and diversified power portfolio in India
TATA POWER TATA Most vertically integrated and diversified power portfolio in India Tata Power Company Limited (TPCL) H1FY24 Revenue @ inCr) 30,446 EBITDA (2 incr) Net Debt (2 incr) 6,092 36,609 PAT*** (2 in Cr) 2,158 Thermal generation, coal & hydro renewables Revenue (in Cr) 9,800 EBITDA (in Cr) 2
Slide 59: Well-capitalised with one of the strongest Balance Sheets
TATA POWER TATA Well-capitalised with one of the strongest Balance Sheets Net Debt (? in Cr) FY19 44,811 FY20 43,559 FY21 36,187 FY22 39,708 FY23 35,328 Balance Sheet continues to strengthen FY18 FY19 FY20 FY21 FY22 FY23 Q2FY24* I Net Debt to Equity [ll Net Debt to Underlying EBITDA “Trailing twelve
Slide 60: Well poised to achieve our aspirations
TATA POWER Well poised to achieve our aspirations PSP Projects to add An All-round 2.8GW to our Clean “Utility of the and Green Energy Portfolio Clean & Green Expand distribution footprint to 40 portfolio to reach million customers by 2027; and 70% of the grow transmission business generation throug
Slide 61: Investor Relations contact
TATA POWER ajesh Lachhani_ dem PIG LE: ‘or Relations y 3 Email: rajesh.lachhani@tatapower.com M: +91 9742947821 =
Tata Power Company — Investor Presentation (November 2023) on 6ix