Tata Power Company Limited · NSE:TATAPOWER
Tata Power — The Tata Power Company — Investor Presentation (December 2024)
57 slides from Tata Power's investor presentation, Dec 6, 2024
Slide 1: Cover letter to stock exchanges: presentation to analysts and investors
December 6, 2024 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 Dear Sir/Madam, Sub:
Slide 2: Powering India Today and Tomorrow
Powering India Today and Tomorrow
Slide 3: Agenda
TATA POWER a TATA Agenda Indian power Spotlight: sector: 4.3 GW Cell Witnessing and Module strong tailwinds manufacturing What sets us apart The Tata Power story Key growth drivers Sustainability: At the core of all that we do Click on @ to explore
Slide 4: The Tata Power story
Slide 5: India's largest vertically integrated and diversified power company
G TATA POWER TATA India's largest vertically integrated and diversified power company Generation New-age and Other Energy Solutions "'25.6 GW "'8.9 GW 2.8 GW "'4.9 GW Total capacity Thermal energy generation MoU signed for Pumped Manufacturing capacity for Cell & (Including 10.1 GW in pipeline) (Ins
Slide 6: Generation, Transmission and Distribution assets spread across India
G TATA POWER TATA Generation, Transmission and Distribution assets spread across India f -· • Transmission Capacity mix Distribution of installed capacity (Domestic+ International)(%) (Domestic+ International) Ci) Distribution Thermal Ci) Generation 25,605 MW 43 ■ Clean and Green Solar Total capacit
Slide 7: Assets located outside India
G TATA POWER TATA Assets located outside India Georgia, Adjaristsqali Bhutan, Dagachhu 187 MW 50% Bhutan, Khorlochhu 126Mw 26% Installed capacity TPCL stake Installed capacity TPCL stake 600Mw 40% Pipeline capacity TPCL stake Indonesia Coal Mines Coal mines I Tata Power share% • Kaltim Prima Coal (K
Slide 8: Generating consistent value over the years
G TATA POWER TATA Generating consistent value over the years ... Revenue (~Cr) EBITDA* (~ Cr ) Underlying EBITDA**(~ Cr) 32,057 7,158 7,682 Hl FY25 Hl FY25 Hl FY25 FY24 61,542 FY24 12,701 FY24 13,878 FY23 FY23 FY23 FY22 FY22 FY22 FY21 33,239 FY21 7,978 FY21 8,851 FY20 28,948 FY20 8,317 FY20 9,269 Re
Slide 9: Rising contribution from our core businesses
G TATA POWER TATA ... with rising contribution from our Core businessesA Revenue (~ Cr) EBITDA (~ Cr) Reported PAT (~ Cr) Hl FY24 Hl FY25 Hl FY24 Hl FY25 Hl FY24 Hl FY25 ~II ** * -3% M -s%D * -13%12 9,800 9,526 2,107 1,940 1,370 1,193 4,235 1% C 4,297 14% n 3s% n 573 1,720 1,956 426 18,731 1O% C 20,
Slide 10: India power sector witnessing strong tailwinds
«a TATA POWER TATA India power sector Witnessing strong tailwinds
Slide 11: Dec-23 Nov-23 Oct-23
Oct 24 Sep 24 Aug 24 Jul 24 Jun 24 May 24 Apr 24 Mar 24 Feb 24 Jan 24 Dec-23 Nov-23 Oct-23 Sep 23 Aug 23 Jul 23 Jun 23 85% 80% 75% 70% 65% 60% 55% 50% 1.45 1.40 1.24 1.06 0.87 0.69 0.55 0.44
Slide 12: Rising power demand has resulted in power deficit inching up
TATA POWER Rising power demand has resulted in power deficit inching up Peak demand (GW) and peak power deficit (%) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 Source: CEA, EPS FY4 FIs FYI6 FYI7 FYI. FYI9 FY20 Fy21 Fy22 Fy23 Fy24 = Hl Peak demand (GW) FY27E FYB2E FY25 YTD + Peak deficit % 10.0 9.0 8.0
Slide 13: Strong pipeline: 500 GW 2030 target implies ~45 GW capacity additions each year
TATA POWER « TATA Strong pipeline: 500 GW 2030 target implies ~45 GW capacity additions each year 500 GW by 2030 Aspirational capacity addition target 203 GW Installed by Oct 2024 92 GW Solar 48 GW Wind 11 GW Biomass 47 GW Hydro Power 5 GW Small Hydro Biomass Hydro In pipeline 108 GV of projects und
Slide 14: Transmission auction bids continue to surge in H1 FY25
G TATA POWER TATA Transmission auction bids continue to surge in H1 FY25 USD110 Bn transmission capex anticipated in Transmission auction bids in H1 FY25 have already India between FY25-32E (USO Bn) crossed the bids in FY24 (~ Bn) ■ Inter-State Transmission System ■ FY15 FY16 ■ FY17 -- -- FY18 I ■ I
Slide 15: 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 risen in FY24 after declining in the past two years All India basis 2 eo 4 a a 4 Ron os oO al 8 2 § 4 «© 8 2 os Hy Nom £ 4 © nm @ o fe F £ £€ € EF EF EF E &F & & EF EF & E HB AT&C (Aggregate Technical
Slide 16: 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 FY23 RDSS* and LPS** have helped reduce DISCOM dues (~Cr) Arunachal Pradesh 58 1,05,330 1,02,780 Nagaland 46 Sikkim 37 83,716 Jharkhand 30 Tripura 28
Slide 17: Key growth drivers
Slide 18: Key growth driver: Renewable Energy
_ WE LLY] YY] i iim. i.
Slide 19: Targeting 33 GW of Clean & Green energy by FY30
G TATA POWER TATA Targeting 33 GW of Clean & Green energy, including 23 GW operational by FY30 Clean & Green capacity roadmap (GW) What we have achieved ~10 ~33 ,..,,6.7 GW ~23 Clean & Green capacity 15+ - 6.3 6.7 S ep24 Current 2027 FY30 FY30 FY30Total Under construction (Operational) (Under constr
Slide 20: PPAs for majority of ~5.6 GW RE pipeline with visibility of land and transmission
G TATA POWER TATA PPA's for majority of ~5.6 GW RE pipeline with 100% visibility of land and transmission 627MW ~5.6GW 100% 1,657 MW Land visibility (~40% already acquired and remaining will be acquired over the next 12 months) 953MW 594MW 90% PPA's signed (remaining expected to be signed in 04 FY25
Slide 21: Tata Power is the market leader in Solar Rooftop EPC
G TATA POWER TATA Tata Power is the market leader in Solar Rooftop EPC Solar Rooftop has grown at 17% CAGR in India has 14.5 GW of installed Tata Power has 13.1 % market share in the past 4 years (MW) Solar Rooftop capacity (MW) Solar Rooftop EPC Market size: 2,855 MW in CY23 ~17%CAGR R f - - - - -
Slide 22: Solar Rooftop revenue estimated to grow at ~36% CAGR between FY24-30E
G TATA POWER TATA Solar Rooftop revenue estimated to grow at a CAGR of ~36% between FY24-30E ~ - - - - - - ~36%CAGR g ,_____ _ _ _ ~11,000Cr ~ 6,500 Cr ~2,300 Cr ~ 1,715 Cr FY24 FY25E FY28E FY30E 21
Slide 23: PM Surya Ghar Yojna: Tata Power targets 3 Mn households
TATA POWER TATA PM Surya Ghar Yojna (PMSGY): A focus area as Tata Power targets 3 Mn households Salient features of PMSGY Scheme 1 Cr households GOl's target under PMSGY ~75,000 «. Financial outlay approved by GOI 6,500 «. Budget for FY25 3 Mn households Tata Power's target for next 3 years Advance
Slide 24: Key growth driver: Transmission and Distribution
was Sy, RS aN oS TATA POWER
Slide 25: Transmission capacity targeting 10,500 Ckm by FY30
G TATA POWER TATA Transmission capacity to cross 7,000 Ckm post completion of ongoing projects, targeting 10,500 Ckm by FY30 What we have achieved 4,633 Ckm 2,416 Ckm What we aim to achieve "'10,500 Ckm Operational capacity Under construction By FY30 requiring an additional Total capex: ~12,350 Cr c
Slide 26: 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) 1 I I ···. 23.7 23.7 23 7 • ···1 ·····--······· 22.0 20.0 • ••••• 18.0 16.0 • • ••••••• 15.0 14.0
Slide 27: Capex and regulated equity build-up for Odisha
G TATA POWER TATA Capex and regulated equity build-up for Odisha over the next few years Odisha capex (~f Cr) Odisha regulated equity to rise by 94% between FY24-30E 1,450 325 4,740 1,400 1,400 325 Ill - 1,295 1,235 1,270 380 Ill • 432 1,090 1,090 • 423 • 411 835 2,445 1,837 1,407 800 -40 FY21 ■ TPC
Slide 28: Emerging Distribution business opportunities across India
TATA POWER TATA Emerging Distribution business opportunities across India What we 1 2.5 Mn What we aim ~40 Mn have achieved Customers across 7 DISCOMS to achieve Customers by FY30 @ Rajasthan © Uttar Pradesh Geography covered: Pan Rajasthan Consumers: 3.29 Cr Business model: Energy sales: 1,08,410 M
Slide 29: Key growth driver: Pumped Storage (PSP) & Hydro Power Plant (HPP)
«a TATA Key growth driver G) Pumped Storage (PSP) & Hydro Power Plant (HPP)
Slide 30: 1,000 MW Bhivpuri PSP: Construction to begin in early 2025
G TATA POWER TATA 1,000 MW Bhivpuri PSP: Construction to begin in early 2025 with COD around mid-2028 1,000Mw Bhivpuri PSP Type Existing Off-stream Upper Reservoir Thokarwadi ~348 MCM (Mn cubic meters) Lower Reservoir New~4.6MCM Daily generation 8,000 MWhr Capital investment ~5,666 Cr Timeline Const
Slide 31: Shirwata PSP: Construction expected to begin in mid-2025
G TATA POWER TATA Shirwata PSP: Construction expected to begin in Mid-2025 1,800Mw Shirwata PSP Type Off-stream Upper Reservoir New-15MCM Lower Reservoir Existing Shirwata Dam 197 MCM Daily generation 10,800 MWhr Capital investment ~7,850 Cr Timeline Start by Mid-2025 Completion by 2029 30
Slide 32: Additional PSP potential can support round-the-clock power
G TATA POWER TATA Additional 9 GW PSP potential can support round-the-clock power of ~30 GW 573 MCM Mulshi dam 72 MCM Walwhan dam, Raigad 348 MCM Thokarwadi dam, Bhivpuri 3,000Mw 3,000Mw 3,000Mw Nenavali, Mulshi dam Upper Reservoir Kataldhara, Walwhan dam Upper Reservoir Potalpali, Thokarwadi dam Up
Slide 33: MoU with Druk Green Power to develop clean energy projects in Bhutan
G TATA POWER TATA MoU with Druk Green Power to develop 5, 100 MW clean energy projects in Bhutan 15 GW Bhutan's vision 2040 for hydro 600MW ' Existing hydro station ' Bhutan's vision 2040 for solar Proposed Hydro 740MW Power Plants (HPP) 2,444Mw ' Dorjilung HPP Khorlochhu HPP ' Potential Plants (HPP
Slide 34: Construction has begun at the Khorlochhu HPP
G TATA POWER TATA Construction has begun at the f6,900 Cr Khorlochhu HPP that is expected to commission in Sept 2029 Khorlochhu hydro power project details 600MW 1.12% Total project capacity Aux power consumption 40% >95% Tata Power Stake Availability 90.62% Average TG efficiency 48% Plant load fact
Slide 35: Pre-construction work will commence at Dorjilung in January 2025
TATA POWER Pre-construction work will commence at Dorjilung’ in January 2025 Project Mid construction 2026 *MoU signed with Druk Green Energy Corporation in November 2024 Project completion period TATA Dorjilung hydro power project details 1,125 MW Total project capacity Underground Powerhouse 8,782
Slide 36: Hydro capacity to rise once PSP and Bhutan hydro projects come on line
G TATA POWER TATA Hydro capacity to rise to ~s GW once PSP and Bhutan hydro projects come on line Hydro overview: Plant capacity addition (MW) Dorjilung** Shirwata 1800MW I 1,125 MW 4967 Bhivpuri Units Bhivpuri ~ 242 ....• •······ Upgraded 1000MW to 12 MW Khopoli Bhivpuri Bhira Khopoli Bhira Bhira B
Slide 37: Spotlight: 4.3 GW Cell and Module manufacturing
«a TATA POWER ” TATA Pa Spotlight — bs 4.3 GW — Celland Module ® manufacturing ee
Slide 38: Global solar module industry will continue to face overcapacity
G TATA POWER TATA Global solar module industry will continue to face overcapacity in the medium term Global PV component manufacturing capacity vs installation volume (GW) 2000 1500 1000 606 536 500 ··········•••••••••••••••• ······••••••••••••••••••••• 480 .. ••••• ···························•·····
Slide 39: India's module & cell industry fundamentals are robust despite rising supply
G TATA POWER TATA India's module & cell industry fundamentals are robust despite rising supply Actual cell & module capacity in India India's module capacity utilisation to 12-14 GW module exports are to be lower than nameplate capacity remain high due to exports expected from FY26 onwards (GWp)* 90
Slide 40: Integrated solar module manufacturing capacity across two locations in India
G TATA POWER TATA ~s GW of integrated solar module manufacturing capacity across two locations in India Our competitive advantage State-of-the-art new manufacturing facility enables us to focus on cost-effective and high-quality output Module manufacturing Cell manufacturing Bengaluru facility Benga
Slide 41: Both cell and module facilities expected to produce 4.0 GW in FY26E
G TATA POWER TATA Both cell and module facilities are expected to produce 4.0 GW in FY26E Module production ramp up (GW) Cell production ramp up (GW) ~ 4.0 ~4.0 ~1 .8 ~1.0 0.9 0.6 Q1 FY25 Q2 FY25 H2 FY25E FY26E H2 FY25E FY26E 40
Slide 42: Own utility scale EPC; third party EPC, rooftop and external sales
Own Utility scale EPC Own Utility scale EPC Third party EPC, Rooftop and external sales Third party EPC, Rooftop and external sales
Slide 43: What sets us apart
«a TATA POWER TATA What sets us apart
Slide 44: Capex estimated between FY25-30 with ~60% in renewable sector
G TATA POWER TATA f 1.46 tn capex is estimated between FY25-30 with ~60% in renewable sector Estimated cap ex of ~f 1,46,000 Cr between FY25-30E ~60% of the capex to be spent on (~~ Cr) renewables between FY25-30E 26,000 25,000 25,000 25,000 24,000 21,000 ■ Traditional Generation+ Others ■ Pumped St
Slide 45: Confident of strong financial performance continuing till FY30E
G TATA POWER TATA Confident of strong financial performance continuing till FY30E FY24 FY30E Share of EBITDA (%) 7 Revenue 36 7 f61,542 Cr 0 fl,00,000 Cr ~1.6x growth EBITDA FY24 FY30E ■ Renewables PSP T&D ■ Conventional Generation, Coal & Shipping ■ Others* fl 2,701 Cr 0 f30,000 Cr Share of PAT(%)
Slide 46: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 47: Diversified business and hence stable margins
G TATA POWER TATA Diversified business and hence stable margins T t p r C m n L" it d {TPCL} H 1 FY25 Revenue(< Cr) EBITDA (<Cr) Net Debt(< Cr) PAT***(< Cr) a a owe O pa Y im e 32,057 7,158 43,580 2,721 Thermal Generation, Renewables" Transmission and Eliminations/ Others Coal & Hydro Distribution (
Slide 48: Well-capitalised with one of the strongest Balance Sheets
G TATA POWER TATA Well-capitalised with one of the strongest Balance Sheets Net Debt (~ Cr ) Relatively smaller rise in Tata Power's Cost of Debt (CoD) compared to rise in repo rate (%) FY21 FY22 FY23 39,708 10 8 6 ·•········· i1 :1. 399 b ps 'Ii.- 'I' • • • • • ••• •• .•• •••• ·• ••••••••••• .. •··
Slide 49: Sustainability: At the core of everything we do
TATA POWER At the core of @ everything ‘@) wedo
Slide 50: Our sustainability goals
G TATA POWER TATA Our sustainability goals Become carbon Net Become water Zero waste to landfill No Net Loss to Leverage technology to Zero before 2045 neutral before 2030 before 2030 Biodiversity create the 'Utility of the Future' (IOT, Smart Grids, BESS, Green H2, robotic panel cleaning etc.) Educ
Slide 51: Taking leaps towards our ESG goals
TATA POWER Taking leaps towards our ESG goals Description ey | Year| vatue| Year TATA On going actions + 43% Clean & Green portfolio currently; 57% Clean & Green capacity post Clean & Green portfolio 16%" 2015 70% 2030 * Caen ion of projects in pipeline + SBTi commitment Net Zero : , (Absolute Carbo
Slide 52: Gradually improving our ESG ratings
G TATA POWER TATA Gradually improving our ESG ratings 2024 2023 2022 2021 *CDP DISCLOSURE INSIGHT ACTION 0 B B B C CDP - Climate Change *CDP DISCLOSURE INSIGHT ACTION 0 B B B B CDP-Water Dow Jones 0 67 67 67 67 Sustainability Indexes DJSI (Higher score is better) MSCI MSCI - 0 A BBB BBB BB - SUSTAIN
Slide 53: Achieving 100% Clean & Green power generation by FY45
G TATA POWER TATA Achieving 100% Clean & Green power generation by FY45 2015 2030 2045 Largely a coal-based company, Transitioning towards a clean Clean & Green capacity will account Phasing out thermal portfolio having capacities to fulfil the and green portfolio through for at least 70% of our ove
Slide 54: First integrated power company in India with approved SBTi targets
SCIENCE BASED TARGETS G TATA POWER OAI\IIHG AMSITIOIJSCORPORATE CUMA.ff ACTK)N TATA Tata Power becomes the first integrated power company in India with approved Science-Based Target initiatives (SBTi) Ambitious goals SBTi collaboration Approved science- based target SBTi collaboration drives The Sci
Slide 55: Well poised to achieve our aspirations
G TATA POWER TATA Well poised to achieve our aspirations Revenue FY 2024 FY2030E <Cr What we have What we aim achieved to achieve 61,542 . g 1,00,000 ~15.6 GW ~31.9 GW Total capacity (incl. thermal capacity) Total capacity (incl. thermal capacity) EBITDA <Cr Generation ~6.7 GW ~23Gw 12,701 . '1 30,0
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Slide 57: Investor Relations Team
TATA POWER TATA Investor Relations Team Mr. Soundararajan Kasturi Chief -Treasury & Investor Relations Email: kasturis@tatapower.com Mr. Rajesh Lachhani Head — Investor Relations Email: rajesh.lachhani@tatapower.com www.tatapower.com
The Tata Power Company — Investor Presentation (December 2024) on 6ix