Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2014)
44 slides from Ntpc's investor presentation, August 2014
Slide 1: NTPC Limited Investor Presentation
NTPC Limited Investor Presentation August 2014
Slide 2: NTPC: Vision and Core Values
NTPC: VISION AND CORE VALUES Vision To be the world’s largest and best power producer, powering India’s growth To be the world’s largest and best power producer, Mission powering India’s growth Develop and provide reliable power, related products and services at competitive prices, integrating multi
Slide 3: Outline
OUTLINE About NTPC Recent Financial Highlights Opportunities and Sectoral Growth Drivers Competitive Position Risks and Mitigants Growth and Capex Plans Sustainability Initiatives 3
Slide 4: NTPC: Snapshot
NTPC: SNAPSHOT Incorporated as a Government company in 1975; amongst 7 Maharatna GoI companies, empowered to make its own investment As of July 31, 2014 total installed power generation decisions capacity of 43,128MW* (including 6,001 MW* through NTPC Group accounts for 17.7% of India’s total instal
Slide 5: NTPC: The Lone Star Performer
NTPC ….. THE LONE STAR PERFORMER Private NTPC* CENTRE STATE NTPC sustains its leadership position in past 2 decades Private sector thermal Thermal Capacity (MW) as capacity 1.3 times NTPC's Contributes to 81% of central installed capacity Thermal Capacity 52991 and 84% to corresponding generation on
Slide 6: Market Leader
MARKET LEADER Financial & Physical Dominance NTPC’s share in all India Capacity and Generation Reliance Tata Adani JSW Rs Crore Power Power Power Energy Share of Installed Capacity Market Cap as 98,863 19,664 23,036 13,958 9,717 (as on 31st March 2014) on 31.03.2014 Installed 43.1 3.8 8.56 7.9 3.1 1
Slide 7: What We Promised Is What We Delivered in FY14
WHAT WE PROMISED … IS WHAT WE DELIVERED IN FY14 Actual Performance Against Commitments Made to Investors for FY14 Guidance Performance 1 Target PAF (Coal)(FY14) : 89%+ PAF (Coal) 91.79% 2 Commissioning of 1875 MW capacity 1835 MW commissioned 3 Capex (standalone) Target of Rs.20200 crore in Capex in
Slide 8: Unparalleled Collection Efficiency
UNPARALLELED COLLECTION EFFICIENCY Outstanding dues of power utilities (principal and surcharge) payable to Central Public Sector Undertakings (CPSUs) as on 30.04.2014 (Source : CEA Report) Average Debtor Days* DVC NHPC NLC 35 Inspite of largest billing size of NPCIL 30 NTPC, same/similar external N
Slide 9: NTPC Group: Pan India Presence
NTPC GROUP: PAN INDIA PRESENCE Geographical Spread of NTPC Group Capacity (As on 31.07.2014) Eastern Region Koldam 22% (800MW) Western Region Dadri (817MW) Dadri SolarPV (5MW) 33% Faridabad (430MW +5MW Solar) Lata Tapovan (171MW) Tapovan Vishnugad (520MW) Badarpur (705MW) NCTPP (1,820MW) Jhajjar (1,
Slide 10: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 10
Slide 11: Financial Highlights Q1/FY15 (Unaudited)
FINANCIAL HIGHLIGHTS Q1/FY15 (UNAUDITED) Position Statement Q1FY15 Income Statement Q1FY15 Quarter Ended Q1/FY15 Q1FY14 % change Quarter Ended Q1/FY15 Q1/FY14 % change Key Balance Sheet Highlights Earnings Highlights Fixed Assets incl. CWIP 128,465.03 110,283.15 +16.49% Revenue from Operation 18,336
Slide 12: Financial Highlights 2013-14 (Audited)
FINANCIAL HIGHLIGHTS 2013-14 (AUDITED) Assets Growth Financial Year 2014 125 Rs. crore 17% CAGR FY10 FY11 FY12 Year FY14 FY13 %Change 100 FY13 FY14 Rs.Thousands crore Key P&L Highlights 75 50 Total Revenue 74,707.82 68,855.81 +8.50% 25 Profit Before Tax 13,904.65 16,578.63 -16.13% 21% CAGR - Profit
Slide 13: Key Year Financial Highlights
KEY 5 YEAR FINANCIAL HIGHLIGHTS Rs. crore Particulars 2013-14 2012-13 2011-12 2010-11 2009-10 CAGR EBITDA 20,453 20,216 16,830 15,956 14,641 9% Profit before tax 13,905 16,579 12,326 12,050 10,885 6% Profit after tax 10,975 12,619 9,224 9,103 8,728 6% Dividend 4,741 4,741 3,298 3,133 3,133 11% Total
Slide 14: Opportunities and Sectoral Growth Drivers
OPPORTUNITIES AND SECTORAL GROWTH DRIVERS 14
Slide 15: Power Demand Supply
POWER DEMAND SUPPLY Peak Power Supply Position (GW) 104 119 110 122 116 130 123 135 130 136 91 109 97 110 There was sustained peak and energy deficit in past FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Although FY14 peak and % Peak Deficit energy deficit numbers are Capacity Peak Requirement lower but
Slide 16: 12th Plan
12TH PLAN India has a Large Capacity Requirement … … with Significant Investments Planned in the Sector Capacity in GW 960 12th Plan (2012–17) 778 Capacity excl. RES (MW)1 88,536.6 717 337 535 306 243 Expected Investments in Power 14,99,914 63 94 Sector (Rs. Crore)2 FY 14 8% Growth 9% Growth 8% Grow
Slide 17: Competitive Position
COMPETITIVE POSITION vad? NTPC a al er, - a al er, mt fe er, - pe _ Power of india
Slide 18: Key Competitive Strengths
Key Competitive Strengths Leadership Position in the Indian Power Sector Long-term Fuel Security High Operational Efficiency Ability to Turn Around Underperforming Power Stations Low Cost Power Producer Prudent Off-take Policy Strong Balance Sheet Competent and Committed Workforce Integrated Busines
Slide 19: Long-term Fuel Security
LONG-TERM FUEL SECURITY Capacity Break-up (By Fuel)1 Gas NTPC implements projects only upon establishing availability of fuel Current Capacity 11% ‘Maharatna’ status provides very high level of autonomy with regards to investments in backward integration and new fuel sources Break-up Coal 89% By 203
Slide 20: Long-term Fuel Supply (Cont'd)
LONG-TERM FUEL SUPPLY (CONT’D) Coal Supply Coal Requirements FY15E to FY17E (For NTPC Own Plants) (In MT) 91.5% 94.1% 93.3% 90.1% 90.9% 177 208 220 15.3% 23.6% 21.7% 1.7% 1.8% 1.4% 6.0% 1.4% 8.5% 5.9% 6.7% 9.9% 9.1% 83.1% 73.1% 70.9% FY12 FY13 FY14 Q1FY14 Q1FY15 Domestic Imported (In MT) FY 2012 FY
Slide 21: Captive Coal Blocks for Long-term Fuel Security
CAPTIVE COAL BLOCKS FOR LONG-TERM FUEL SECURITY (CONT’D) 6 coal mining blocks allocated to NTPC – Pakri Barwadih, Talaipalli, Dulanga, Kerandari, Chatti Bariatu and Chatti Bariatu (South) – Estimated geological reserves of over 3.7BT – Incurred cumulative Capex of Rs.2174 crore till FY14 – Peak prod
Slide 22: Diversifying Fuel Mix
LONG-TERM FUEL SECURITY (CONT’D) Long-term gas supply agreements with GAIL Details of Gas/RLNG tie ups for NTPC Existing Gas under APM for supply of gas to all directly- Stations Contracted owned gas power stations at regulated Source/ Quantity Contract pricing under Government orders Gas: Long-term
Slide 23: Highly Efficient Plant Operations
HIGHLY EFFICIENT PLANT OPERATIONS Proven Operational Excellence Successful in growing and achieving high PLF 92.1%* 92.2% 91.8% 89.3% despite fuel shortage concerns in India 88.7%* 84.1%* 83.6% 87.6% 75.2% 78.6% 83.1% 81.5% 84.3% On forefront of adopting latest and most 72.2% 70.1% 64.7% 65.6%** 68.
Slide 24: Sustaining its Status of Competitive Cost Power Producer
Sustaining its Status of Competitive Cost Power Producer 3.30 3.20 Rs./kWh Overall Tariff (Coal+gas+ Solar) 2.96 2.96 2.63 2.27 2.13 2.05 2.10 1.95 1.77 1.51 1.20 1.01 1.07 0.86 0.91 0.76 2009-10 2010-11 2011-12 2012-13 2013-14 Q1FY14-15 Average Tariff Fuel Charges Fixed Charges Average Coal Based P
Slide 25: Prudent Off-take Policy
PRUDENT OFF-TAKE POLICY Secured Off-take Regulated Pricing Mechanism PPAs have been signed for all operating and under construction projects Policy of securing PPAs for all new plants before Tariffs based on Regulations notified by CERC. Regulatory approval is given for investment mechanism assures
Slide 26: CERC Tariff Regulations 2014-19
CERC Tariff Regulations 2014-19 Description Tariff Regulations 2014-19 Tariff Regulations 2009-14 1 NAPAF (Normative Recovery of Fixed Charges allowed at NAPAF of NAPAF for Thermal Plants at 85% Annual PAF) 83% for all thermal plants till 01.04.2017. The except of TTPS and BTPS for which provision s
Slide 27: Robust Financials - Proven All Round Track Record
ROBUST FINANCIALS- PROVEN ALL ROUND TRACK RECORD Capacity (NTPC Group) * Generation (NTPC Standalone) Units in Billion 41184 43019 43039 MW 232.03 233.28 34194 20249 133.19 16795 99.16 11333 61.57 63.13 3100 200 20.82 0.00 1981-82 1986-87 1991-92 1996-97 2001-02 2010-11 2012-13 2013-14 Jul-14 1981-8
Slide 28: Robust Financials Contd..
ROBUST FINANCIALS CONTD.. Total Debt and Capitalization1 Debt/Equity Rs. Crore 0.78x 0.69x 0.72x 152986 0.64x 138534 0.61x 123571 111080 100234 58146 67170 43188 50279 37797 FY 10 FY 11 FY 12 FY 13 FY14 FY 10 FY 11 FY 12 FY 13 FY14 Total Debt Total Capitalisation Interest Service Coverage Ratio1 Cur
Slide 29: Human Resource Metrics
HUMAN RESOURCE METRICS Over 5 years number of employees have remained constant 23743 23797 24011 23865 23411 Sales per Value Added employee has per employee grown from has gone up Profit per Rs.2.10 crore from Rs.0.74 employee has to Rs. 3.19 cr in FY10 to grown from crore over 5 Rs.1.11 cr in Rs.0.
Slide 30: Presence Across the Power Value Chain
PRESENCE ACROSS THE POWER VALUE CHAIN Integrated Business Model – Within the Business and Across the Value Chain Coal Mining Equipment Power Power Distribution/ Power Trading & Exploration Manufacturing Generation Consultancy Services NTPC has formed JVs Total installed power NTPC has forayed into N
Slide 31: Global Footprint
GLOBAL FOOTPRINT Trincomalee Sri Lanka Map not to scale. Bangladesh 1320MW imported coal based power plant at Khulna Sri Lanka (Trincomalee) Being Developed through a 50:50 JV Co. with BPDB on Bhutan BOO basis. A JV Co. ‘Bangladesh-India Friendship Power 2x250MW coal based power project Company (Pvt
Slide 32: Risks and Mitigation
RISKS AND MITIGATION vad? NTPC a al er, - a al er, mt fe er, - pe _ Power of india
Slide 33: Key Risks and Mitigation
KEY RISKS AND MITIGATION Risk Mitigation Coal and Gas Supply Long term Fuel Supply Agreements signed with CIL for supply of coal for a period of 20 years for stations set up prior to Constraints March 2009 – ACQ supply tied up ~124.9MT, FSA of 39.67 MT signed for post 2009 stations for 9.6 GW capaci
Slide 34: Growth and Capex Plans
GROWTH AND CAPEX PLANS vad? NTPC a al er, - a al er, mt fe er, - pe _ Power of india
Slide 35: Growth Visibility
GROWTH VISIBILITY NTPC takes the decision to proceed with a new project only once it is satisfied on the availability of land, water, fuel, off-take arrangements and environmental clearances. Vision to maintain leadership position in India…Current development pipeline of ~ 47GW (In MW) 128000 90242
Slide 36: Capacity Addition Scheduled in 12th Plan (FY13 to FY17)
CAPACITY ADDITION SCHEDULED IN 12TH PLAN (FY13 TO FY17) Commissioned Target –FY15-17 Year Project Target MW Year Project Target MW FY13 Sipat 660 FY15 Rajgarh (Solar PV) 20 Indira Gandhi STPP JV 500 Bongaigaon (Unit#1) 250 Mouda – I, Unit - 1 500 Barh-II (Unit#5) 660 Koldam- Hydro (U#1 &2) 400 Vindh
Slide 37: Inorganic Growth - Enhancing the Pace of Capacity Addition
INORGANIC GROWTH – ENHANCING THE PACE OF CAPACITY ADDITION Many of the other players in the power sector are plagued with problems of fuel and under recovery of costs. NTPC’s entire capacity is on cost plus basis hence there is least risk of under-recovery of costs. Fuel Supply is secured by FSAs an
Slide 38: Sustainability Initiatives
SUSTAINABILITY INITIATIVES 38
Slide 39: Sustainability Initiatives
SUSTAINABILITY INITIATIVES Renewable and Nuclear Energy—Reducing Environmental Initiatives—More Than 37 Million Tons of CO2 Carbon Footprints has been Avoided in NTPC Technology Monitoring Energy Sustainability Own Basket In Partnership JNNSM Conservation Choices Systems Report Basket of 1,000MW Pan
Slide 40: Technology Progression - Increased Efficiency and Greater Environmental Protection
TECHNOLOGY PROGRESSION—INCREASED EFFICIENCY AND GREATER ENVIRONMENTAL PROTECTION Leader in introducing new technologies in the power sector. Technologies Introduced Technologies Under Development Adoption of super critical parameters for higher efficiency Development of IGCC suitable for Indian coal
Slide 41: R&D - NETRA
R&D- NETRA Committed to invest up to 1% of distributable profit for R&D Activities and Climate Change Technologies. Efficiency Improvement and Cost Climate change Renewable energy Reduction Waste Flue Gas based Air conditioning Micro Algae based CO2 fixation 15MW Solar Thermal Hybrid Plant Waste Flu
Slide 42: Extensive Engagement with Society
Extensive Engagement with Society NTPC has committed to contribute 2% of Net Profit towards CSR from FY 2014-15 onwards. Spent Rs. 128.35 crore on CSR & sustainable development activities during the year 2013-14 Adopted 17 ITIs and creating 7 new ITIs. Solapur Power Training Institute in Maharashtra
Slide 43: Disclaimer
DISCLAIMER • This presentation is issued by NTPC Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part f any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securiti
Slide 44: Thank You
Thank You www.ntpc.co.in