Cesc Ltd · NSE:CESC
Cesc — Investor Presentation (August 2010)
42 slides from Cesc's investor presentation, August 2010
Slide 1: CESC Limited
CESC Limited Powering India since 1899 August 2010 www.cesc.co.in 1
Slide 2: RPG Enterprises
RPG Enterprises 8 Business Sectors, 20+ companies, 40,000+ employees, 4,00,000 + shareholders Respond, Perform, Grow 2
Slide 3: RPG Enterprises – Business Sectors
RPG Enterprises – Business Sectors Business Sectors Companies Entertain ment KEC International Infrastructure Speciality 1% CESC 6% IT Noida Power Co.* Power 6% Infrastru Integrated Coal Mining * cture Tyre Carbon 27% CEAT Black CEAT SriLanka 9% Retail Revenue Spencer`s Retail Retail FY 2009-10 Spen
Slide 4: RPG Enterprises - Financials
RPG Enterprises - Financials (` bn ) Revenues EBIDTA Net Profit Current Promoter Institutional (FY`10) (FY`10) (FY`10) Market cap Holding Holding CESC 34.50 9.06 4.33 49.26 52% 37% KEC International 39.50 4.07 1.90 24.99 42% 43% CEAT 25.60 3.03 1.65 4.59 48% 31% Phillips Carbon Black 13.50 1.91 1.23
Slide 5: Power Business
ORPG 4 CESC POWER BUSINESS
Slide 6: CESC- An Overview
CESC- An Overview 110 year old fully Integrated Energy Utility: Coal Mining - Generation - Distribution . Other business through subsidiaries include Retail and Real Estate - 4 thermal plants - 1225 MW, BBGS-III 250 MW commissioned in Q4 FY’10 Capacity - PLF 93%, T&D loss less than 13.3% , Collectio
Slide 7: CESC-Generating Stations
CESC-Generating Stations Budge Budge - 3 x 250 MW New Cossipore – 100 MW - 1950 (Phase I- 500 MW in 1999, Phase II- 250 MW in 2010 Southern – 135 MW - 1991 Titagarh – 240 MW - 1984 BBGS (1 & 2), SGS, TGS have a combined PLF of 93% in FY10 7
Slide 8: Operating performance
Operating performance: 7800 Sales (MU) *7593 7600 7400 *7206 7200 *6948 7000 6800 6600 *6424 6400 6200 6000 5800 FY07 FY08 FY09 FY10 * Excluding Export PLF%(excluding 24.0% 22.8% T & D Loss(%) peaking Station) 22.0% 120 20.0% 94 94 97 97 93 100 86 18.0% 16.3% 80 15.5% 80 16.0% 14.7% 13.9% 14.0% 13.3
Slide 9: Tariff & Profitability
Tariff & Profitability Tariff (` / unit) PBT (` Bn) 4.9 4.73 6.00 5.22 4.7 4.57 5.00 4.65 4.5 4.03 4.00 3.41 4.3 4.15 4.03 3.00 4.1 3.91 3.86 1.97 3.9 3.81 3.74 2.00 1.60 3.76 0.89 3.7 1.00 3.5 0.00 FY04 FY05 FY06 FY07 FY08 Feb08 FY09 FY10 Aug10 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Debt / Equity Ratio
Slide 10: Q1 FY11 Performance
Q1 FY11 Performance Generation (MU) Revenue (`Bn) 2443 10.82 2100 1979 9 2040 8.09 1980 8 1920 1860 7 1800 Q1 FY11 Q1 FY10 Q1 FY11 Q1 FY10 EBITDA (`Bn) PAT (`Bn ) 2.71 1.1 1.05 4 2.18 1.5 1 2 0.5 0 0 Q1 FY11 Q1 FY10 Q1 FY11 Q1 FY10
Slide 11: Growth Strategy
ORPG 4 CESC GROWTH STRATEGY
Slide 12: Key Growth Areas
Key Growth Areas Coal based capacity expansion to meet growth in Kolkata circle 1. PAN India investment in merchant power plants (coal & gas) 2. Entry into Hydel and other Renewables 3. 4. Private participation in Distribution through Franchise Foray into infrastructure space 5. 12
Slide 13: Generation
Generation Planning to bid for Ultra Mega Power Projects (UMPPs) i.e 4,000 MW each Looking at M&A route for capacity expansion Future expansion to include alternate fuel like Gas & Nuclear Planning to add renewable such as solar, wind, hydro etc Aggressively looking to acquire coal assets
Slide 14: Generation - Growth Opportunities
Generation - Growth Opportunities Cost Capacity (MW) Rs `bn 2000 80 Regulated Power Dhenkanal, Orissa 1500 Merchant Power 70 Cost (Rs.bn) 65 Dumka, Pirpainty, Jharkhand Bihar 60 1000 Under Implementation Chandrapur, Haldia Phase I, 50 47 50 Maharashtra West Bengal 500 40 30 29 30 250 20 10 0 FY12-13
Slide 15: Generation - Project Status
Generation - Project Status Chandrapur, Haldia Phase 1, Dumka, Project Dhenkanal, Orissa Pirpainty, Bihar Maharashtra W.B Jharkhand Capacity (MW) 600 600 1320 1000 1000 Technology 300x2 300x2 660x2 500x2 500x2 Type Thermal Thermal Thermal Thermal Thermal Commissioning FY12-13 FY13-14 FY13-14 FY13-14
Slide 16: 600 MW Dhariwal Infrastructure (Maharashtra)
600 MW Dhariwal Infrastructure (Maharashtra) Dhariwal Infrastructure Limited is a 600 MW Power Project located in Maharashtra, in close Introduction proximity to state highways and railway link The project is expected to be commissioned by FY 2013 Fuel Coal linkage for project has been obtaine
Slide 17: 600 MW Haldia Phase I
600 MW Haldia Phase I Haldia Phase I is a 600 MW Power project to be setup in West Bengal The project is based on domestic coal feedstock and is expected to be commissioned by FY 2014 Introduction The project will have a mix of both LT-PPA sales to CESC and merchant power sale Fuel A coal li
Slide 18: 1320 MW Project Dhenkanal Orissa
1320 MW Project Dhenkanal Orissa Dhenkanal is a 1320 MW Power project to be setup in Orissa based on super-critical technology The project is based on domestic coal feedstock and is expected to be commissioned by FY 2014 Introduction The project will have a mix of both Long term-PPA sales and
Slide 19: 1000 MW Dumka Power Project Jharkhand
1000 MW Dumka Power Project Jharkhand Dumka is a 1000 MW Power project to be setup in Jharkhand The project is based on captive coal stock and is expected to be commissioned by FY 2014 Introduction The project will have a mix of both LT-PPA sales and merchant power sale A captive coal block
Slide 20: 1000 MW Pirpainty Power Project Bihar
1000 MW Pirpainty Power Project Bihar Pirpainty is a 1000 MW Power project to be setup in Bihar The project is based on domestic coal feedstock and is expected to be commissioned by FY 2015 Introduction The project will have a mix of both LT-PPA sales and merchant power sale Land acquisition
Slide 21: Distribution - Growth Opportunities
Distribution - Growth Opportunities Existing Business • Routine Capital Expenditure `5 bn per year for Kolkata business • 220/132 kv Network Augmentation capex - `4.5 bn by 2011 • Connectivity to National Grid to facilitate export of power • Downstream transmission of power to different load centres
Slide 22: Real Estate Business
ORPG REAL ESTATE BUSINESS 22
Slide 23: Real Estate
Real Estate Being a 110 year old utility CESC has a large unexploited land bank Utilizing idle company assets for additional income generation and Capital appreciation Floated 100% subsidiary “CESC Properties Ltd” to develop real estate projects. Development of premium shopping mall • 3 acre o
Slide 24: Retail Business
ORPG RETAIL BUSINESS 24
Slide 25: Spencer's
-spencer's MAKES FINE LIVING affordable 25
Slide 26: Makes Fine Living Affordable
MAKES FINE LIVING affordable
Slide 27: Snapshot
Snapshot Year of Establishment 1996 Trading Area(‘000 sqft) 884 No. of Stores in operation 208 Annual Turnover (` Bn) 9.06 Customer Care Associate 5,000 27 27
Slide 28: Spencer's Retail
Spencer`s Retail • `9 bn food-first, multi-format retailer • India’s oldest retail chain since 1863 introducing Indian consumers to the concept of organized retail • Formats – Hyper, Super, Daily & Express • Garner 60 million footfalls per annum • Stock approximately 30000 SKUs in a typical hyper st
Slide 29: Chronology
Chronology • FY 08-09 : Rapid growth to establish Pan India presence • FY 09-10 : Closures and consolidation • FY 10-11 : Consolidation continues, modest growth • FY 11-12 : Rapid growth – to double current retail space by September 2012 29
Slide 30: Macro Environment
Macro Environment • All retailers grew aggressively in FY 08-09 taking store rents and salaries to unsustainable levels • Industry correction in FY 09-10 – Meltdown – market for retail growth heterogeneous – rentals and salaries needed market correction 30
Slide 31: Spencer's Footprint – July 2010
Spencer’s Footprint – July 2010 Hyper TA Supers Dailies Regions States s >15 SAS TOTAL (‘000) 3k -15k <3k k WB 131 4 1 13 0 18 East TOTAL 131 4 1 13 0 18 Maharashtra 96 2 0 16 2 20 • TA Hypers – 452 K sft West Gujarat 24 1 0 0 0 1 • TA Supers – 57 K sft TOTAL 120 3 0 16 2 21 • TA Small stores – 359
Slide 32: Hyper & Super footprint – July'10
Hyper & Super footprint – July’10 Hypers Supers NCR Hypers : Ghaziabad, Gurgaon 19 Hypers – 452K sqft Super : Faridabad 10 Supers – 57K sqft Lucknow Gorakhpur Durgapur Vadodara Aurangabad Kolkata Hypers : South City, Mani Square, Rash Behari Mumbai Warangal Super : Avisar (Malad) Vizag Hyderabad Kak
Slide 33: Current segment-wise sales
Current segment-wise sales Bakery & Food Services Fish & Meat F&V E&E Apparel FMCG HWP Staples The focus is on increasing sales from apparel and E&E segment. 33 33
Slide 34: Spencer's Strategy
Spencer’s Strategy • Brand traction with Sec A, A+ solid, expand reach to Sec B with embedded value communication • Tag line moved from “taste the world” to “MAKES FINE LIVING affordable” to incorporate the “value message” 34
Slide 35: Spencer's Strategy
Spencer’s Strategy • Drive price message harder through in-store communication • Success Measure FY08-09 FY0910 FY1011 Objective • Revenue /Sft (in `) 695 795 925 35
Slide 36: Spencer's Strategy
Spencer’s Strategy • Cost Reduction / Loss Reduction – Savings of `100 mn per month achieved through a combination of: a) Closure of unprofitable stores b) Rent re-negotiations c) Back-end consolidation – with GST coming in 2011 further consolidation possible d) Organisation de-layering e) Operation
Slide 37: Spencer's Strategy
Spencer’s Strategy • Margin Enhancement – To move from 19% to 21.5% GM by March 2011 – Private Label penetration to be enhanced – move from 10% of overall business to 16% by March 2011 – Growth in General Merchandise, net of shrinkage in consumer electronics – High margin SKU’s – gourmet, liquor , p
Slide 38: Private Label
Private Label FMCG / Food FMCG / Non- Food 38
Slide 39: Private Label
Private Label General Merchandise Apparel Formal Wear Casual Wear Ethnic Wear 39
Slide 40: Specialty Brands - Strategy
Specialty Brands - Strategy • Beverly Hills Polo Club (BHPC) – affordable fashion – 3 new stores opened in Delhi, Punjab & Mumbai in July’10 – October 09 to March 10 – Revenue / sft (in `) 1025 per month – Ebitda projected for 20 stores ` 50 / Sft per month – Target is to exit March 2012 with 50
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Slide 42: Thank You
ORPG THANK YOU