Tata Power Company Limited · NSE:TATAPOWER
Tata Power — The Tata Power Company — Investor Presentation (October 2008)
56 slides from Tata Power's investor presentation, October 2008
Slide 1: The Tata Power Company Limited Investors' Meet October 2008
The Tata Power Company Limited Investors’ Meet — October 2008 Lighting up Lives!
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or tacts and may be “forward statements’ | business plans and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including fu
Slide 3: Agenda
a TATA Agenda * Part A: Overview of Tata Power * Part B: Power Business section 1: Generation Section 2: Fuel & Logistics — Section 3:T &D Section 4: Power Trading * Part C: Other Businesses * Part D: Financial Performance * Part E: Sustainability
Slide 4: Part A: Overview of Tata Power
Part A: Overview of Tata Power
Slide 5: A Tata Company
TATA A Tata Company Largest Companies Tata Motors Tata Steel Tata Consultancy Services VSNL Tata Chemicals Tata Tea Tata Teleservices Tata AutoComp Systems Rs 12,574 cr = Fais% = es Chemicals
Slide 6: Tata Power: Introduction
TATA Tata Power: Introduction * Largest private, integrated utility company in India today with presence across the value chain in fuel, generation, T&D and trading * Founded in 1906, to supply hydro-electric power to Mumbai. Set-up thermal generation in Trombay in 1960s * Expanded outside Mumbai wi
Slide 7: Pioneer in Power Sector
Pioneer in Power Sector First 800 MW thermal unit First nome cl of 150 MW Capacity First to Introduce ADA and Fibre Optic ground wire communication Flue Gas De-sulphurisation plant usin: sea water jon Computerized a 220 kV Netw transmission We gas First insulated 50 switch thermal gear »
Slide 8: Existing Presence in Power Sector
TATA Existing Presence in Power Sector
Slide 9: Tata Power Group - Major Companies
TATA Tata Power Group — Major Companies Page Page Page oo Eos ES) = pe y E MEkeovs « coe (eat) 30 ‘pelts 2 ES Antmin | ‘oo Ee io ‘2 aa SB anemia ‘2 ey ‘ : : i 3 i
Slide 10: Businesses and page references
* Trombay 13,18 * Hydro 13,23 «@ip e ins 13,17 TATA Businesses a ee * Haldia 9 * Windfarm 24-26 * Solar PV 42 Tata Steel JV (IEL) Tata BP Solar Tata Power Trading Indonesian Coal Mines Coal Bed Methane Mandakini Refer to page numbers in black, for details - cnc Lan
Slide 11: Part B: Power Business - Section 1: Generation
Part B: Power Business — Section 1: Generation
Slide 12: Generation: Business Models
bid TATA Generation: Business Models Business Model Returns Upside Value Drivers Regulated Normative RoE Savings on\Norms.PLF Operational Efficiency incentive Captive Power Plant PPA driven Merchant sales + Saving Trading Capabilities + onagreed terms +PLF = Operational Efficiency incentive Merchant
Slide 13: Tata Power: Existing Operations
nm Tata Power: Existing Operations ac Miia) Lidmrija Atma (FF? AVY Liat | VT AY i
Slide 14: Thermal Projects Under Implementation
Thermal Projects Under Implementation
Slide 15: Mundra UMPP project
Project Capacity Ownership Structure Customers Funding Completion Project Status 4000 MW (5 x 800 MW) 100% subsidiary: Coastal Gujarat Power Limited Gujarat (1805 MW), Mahiraéhira (786 MW), Punjab (475 MW), Haryana (380 MW), Rajasthan (280 MW) Project Cost: As 17,000 Crore (DE: 75:25) Financial clos
Slide 16: Maithon project
Project Capacity Ownership Structure Business Model Customers Funding Completion Project Statue 1060 MW (2 x S2SMW) Maithan Power Limited 74: 26 JV of Tath Power and Darnadar Valloy Gorporation Aoquiatod OVC (300 MW), Actve discussions with PSEB, NDPL and WBSEB Project Gast: As 4450 Croras (BE: 70:3
Slide 17: Captive Power Plants: Jamshedpur and Jojobera
Project Capacity Ownership Structure Husiness Model Funding Completion Project Status JAMSHEDPUR (PH #6) 120 MW J IEL (74:26 JV of Tata . Powder and Tata Steal) CPP ‘ Project Gost: Ais 490 Groms = OE 7030 " December 2000 x Fuel Biaat furaed/iteal mailing aoe gases of Tata Stow! Appiad to MoiF torden
Slide 18: Trombay project
Project Capacity Ownership Structure Business Model TATA 250 MW Tata Power Division PPA with TPC D, BEST (150 MW) Project Cost: Rs 1066 Crore D/E 70:30 December 2008 Fuel: Imported coal Boiler, turbine, generator installed, interconnection on
Slide 19: Haldia project
120 MW (2 x 45 MW + 30MW) Tata Power Division Merchant and PPA Hoogly Metcoke, PPA with Tata Power Trading and WBSEDCL Project Cost Rs 605 Crores D/E 70:30 September 2008 (45MW), December 2008 (45MW), March 2009 (30MW: Fuel: Hot flue gases from Hoogly Metcoke, Unit 1 & 2 in place - synchronization o
Slide 20: Projects in Pipeline
Rd TATA Projects in Pipeline “Fuel Source "Capacity (MW) Coastal Maharashtra (Dehrand) Imported Coal 2400 Naraj Marthapur IPP Mandakini Coal Block 1000 Naraj Marthapur CPP Supply by Procurers 1270 Tubed IPP Captive Coal 500 Jharkhand CPP (Tata Steel) Supply by Tata Steel 500 Se MG eS eT Planning & d
Slide 21: Generation Capacity (Tata Power Group)
Generation Capacity (Tata Power Group) Tata Power - Capacity 2008 =. 2009 2010 2011 2012 2013 Year Ended Mar 31 < TATA D Added in he Year @ Opening Capacity
Slide 22: Future Opportunities in Thermal Generation
id TATA Future Opportunities In Thermal Generation Tata Power qualified for about 8000 MW of bidding based generation projects such as Tillaiya, Dhopave and Shahpura. Further opportunities to be explored as available Growth in Tandem with Tata Steel requirements Opportunity to grow with similar othe
Slide 23: Hydro Electric Power
TATA Hydro Electric Power Oldest and one of the largest private sector players with capacity of 447 MW Several awards and recognitions — Bhira Pump Storage Scheme received the CEA Silver Shield Agreed to take 26% equity stake in 114 MW Dagachhu Hydro Electric Power Project being developed by The Roy
Slide 24: Initiatives in Renewables
ig TATA Initiatives In Renewables * 79 MW operational & 23 MW under commissioning * 101 MW ordered — will be commissioned by Feb 2009 + 300 MW being additionally explored * Developing a 3 MW grid connected solar PV farm in Maharashtra + Evaluating potential for concentrated solar thermal (CST) gener
Slide 25: Wind Farms: Installed Capacity and Projects
Installed Capacity Project Under Implementation Ownership Structure Business Model Funding Completion Project Status + 79MW * 123 MW (50 MW Karnataka, 50 MW Gujarat, 23 MW Maharashtra) * Tata Power division + Regulated * Project Cost: Rs 633 Crores + September 2008 (15 MW) * February 2009 (108 MW) T
Slide 26: Wind Projects Under Implementation
Wind Projects Under Implementation
Slide 27: Part B: Power Business - Section 2: Fuel & Logistics
Part B: Power Business — Section 2: Fuel & Logistics
Slide 28: Fuel Supplies for Projects
ry TATA Fuel Fuel Supplies for ney Projects ‘ 4 os Imported Coal (Block alocations. and (+ Long term with naiear rim Tatapani orgwmcoiot- ("Sree imnes | MEMS uy | Taps A ae e.g.Tubed, Mandaki | SPO and GAIL niand A Equity stake in (Tata Steel) coal sek blocks : owes Casini ships ono LE arias
Slide 29: Indonesian Coal Mines
Indonesian Coal Mines lighlights _ { Performance m] cquired 30% equity stake in KPC and Arutmin from PT Bumi Resources, Indonesia * Acquisition value of USD 1.1 bn * Off-take contract with KPC for 10.12 a + 20% (at Tata Power's option) Quantity mined in 2007 ~ 54MT Average realised price per tonne (
Slide 30: Trust Energy Asia Pte Limited
Trust Energy Asia Pte Limited - * SPV incorporated in Singapore for owning ships to meet shipping requirements and trading in fuels * Present shipping requirements of 8-9 vessels for Mundra * To be met through a combination of long term charters and out right purchases — 3 LT charters signed and 2 K
Slide 31: Part B: Power Business - Section 3: T&D
Part B: Power Business — Section 3:T&D ner Trading
Slide 32: Distribution Opportunities
TATA Distribution Opportunities inwestmert & E Losses technical + Second License — parallel licensing unlikely to happen soon + Privatization — not much progress in replicating Delhi model + Qutsourcing — opportunity for marginal players + Franchisee Opportunity — window is open for private particip
Slide 33: Mumbai: Transmission and Distribution
Mumbai: Transmission and Distribution + 23,000 customers with 2500 MUs of sales (mostly to high value bulk consumers} + 17 receiving and distribution stations, 318 consumer substations and 1335 Kms of HT & LT Cable network. Total asset base over Rs 1400 crores + MERC regulated tariff with 16% RoE on
Slide 34: North Delhi Power Limited (NDPL)
7 TATA North Delhi Power Limited (NDPL) * 51:49 JV of Tata Power and Delhi Vidyut Praday Nigam (Govt. of Delhi) NDPL * Over 1 million consumers with 5000 MUs roam consumption and net asset base of over 7 Rs 1800 Crores * Assured returns upto 16%, plus incentives on loss reduction Mar 2008: Sales — R
Slide 35: Powerlinks Transmission Limited
Powerlinks Transmission Limited 51:49 JV of Tata Power and Power Grid Corporation of India 1200 km 400 kV double-circuit transmission lines Transmits power from Tala Hydroelectric Project and Easterv/North-Eastern region to New Delhi and adjaining areas. Total investment of As 1560 Crores (D/E 70:30
Slide 36: Part B: Power Business - Section 4: Power Trading
Part B: Power Business — Section 4: Power Trading
Slide 37: Tata Power Trading Company Limited
TATA Tata Power Trading Company Limited TPTCL Sales (MU) Role 1711 ‘-) + — Identify and tap surplus power source in me ee | the country vest 1205 u + Locate a customer who is ready to pay pa in cash the for power at its landed cost ‘nl inclusive of transmission losses w a | + Settle commercial terms
Slide 38: Power Trading
TATA Power Trading Traded Power (MU) Power Trading Projections (MU) e227 5025 fo —— any 14188 at i 11847 oS ‘41029 30588 w 7 my 4178 “6 pT Be _ fh _ a_i 4 FYO8E FYOS9E FY10E FY11E FY12E Improvements needed: + Cap on trading margins + Operational - scheduling delays, non-grant of intra-state corridor
Slide 39: Part C: Other Businesses
Part C: Other Businesses
Slide 40: Strategic Electronics Division (SED)
Strategic Electronics Division (SED) * Revenues of Rs. 59 crores (Mar 08) against Rs.51 crores during the previous year * Currert revenue contributors include electronics system for the Rocket Launchers, Fire Control Camputers for Arjun Tank and Command and Cortral systems. * Future revenue to come
Slide 41: Tata Power subsidiary overview
TATA + A subsidiary of Tata Power (50.04% stake} listed on BSE and NSE + Current Businesses structured around Automation & Control and Network Systems. + Caters to core industries like Defence, Railways, Steel, Cement, Automobile, Oil and Gas etc. + Tie-ups with international players for defence, we
Slide 42: Tata BP Solar
Tata BP Solar * 51:49 JV between BP Solar and Tata Power * Market leader in Solar Photovoltaic technology in India with tumover of Rs 660 Crores * Nearly 75% of sales from exports largely to Europe and USA * India’s first Polycrystalline Solar cell manufactunng plant and 45 MW madule manufacturing f
Slide 43: Part D: Financial Performance
Part D: Financial Performance
Slide 44: Financials - Year Ended March 31, 2008
Financials - Year Ended March 31, 2008 TATA Year Ended Rupees in Billions 31-Mar-08 31-Mar-07 Operating Income 59.16 47.15 Operating Expenditure (49.79) (39.92) Operating Profit 9.37 7.23 Interest & Finance charges (1.42) (1.89) Depreciation (2.91) (2.92) Other Income 4.66 3.44 Profit Before Tax 9.7
Slide 45: Financials - Half Year ended September 30, 2008
Financials — Half Year ended September 30, 2008 TATA Quarter Ended Half Year Ended Rupees in Billions 30-Sep-08 30-Sep-07 30-Sep-08 30-Sep-07 Operating Income 19.59 13.51 39.85 28.62 Operating Expenditure (16.90) (10.88) (34.05) (23.47) Operating Profit 2.69 2.63 5.80 5.15 Interest & Finance charges
Slide 46: Financials - Consolidated
Financials - Consolidated TATA Year Ended March 31, 2008 Year Ended Rupees in Billions 31-Mar-08 31-Mar-07 Operating Income 108.91 64.76 Operating Expenditure (87.70) (53.85) Operating Profit 21.21 10.91 Interest & Finance charges 4.88 2.83 Depreciation 5.59 4.15 Other Income 4.79 2.67 Profit Before
Slide 47: Tata Power - Financials (Standalone)
Tata Power - Financials (Standalone) Annual Sales (MU) 14,959 14,422 12.318 12,231 12,663 Tele 2004 Net Profit After Tax (in Billion Rs.) 2008 2003 2004 2005 2006 2007 EPS (in Rs.) i } il i 2006 2007 ee | Net Worth (in Billion Rs.) 63.63 44.67 J 32.01 | [ 19 2003 2004 2005 2006 2007
Slide 48: Dividend History
Dividend History Bi Earnings (Rs.) 40 ; 40 Hl Dividends (Rs.) * “— ratio (%) p 30 30 ma + 20 % Rs. 55 | ‘6.4 10 o- Lo 2003 2007 2008
Slide 49: Funding by Tata Power - Projects under Implementation
Funding by Tata Power - Projects under TATA Implementation Own Funds (Rs.6,000 Crores) Internal accruals ;.2900 Crores Preferential Iss varrants - Tata Sons: Rs.1900 Crores TATA Fonte 49 Debt (Rs.18,000 Crores) Domestic loans through domestic financial institutions, banks and capital markets Foreign
Slide 50: Part E: Sustainability
Part E: Sustainability
Slide 51: Climate Change
Climate Change TATA Trombay SO, emission of 24TPD (1330MW) - one of the most stringent Forum of 46 global companies: New policy framework on Combating Climate Change (3C) Carbon Footprint for the Company completed Sustainability Council formed - 17 CDM Projects Identified Utilization of waste hot ga
Slide 52: Renewable and Clean Coal Technology
7 Renewable and Clean Coal Technology TATA * Solar Concentrated Thermal (SCT) * Geo Thermal energy * Coal Bed Methane (CBM) * Coal beneficiation technologies
Slide 53: Wind Farms
, a Wind Farms * Existing installed Renewable plants * CDM host country approval received for the 62 MW of the new wind farms * 123.3 MW of wind power projects under implementation * 22.5 MW in Maharashtra, 50.4 MW in Gujarat, 50.4 MW in Karnataka.
Slide 54: Demand Side Management
Demand Side Management = * DSM Workshop conducted for all utilities in Maharashtra * Energy conservation awareness campaigns for Customers & School * Launched “I will, Mumbai will” (joint Adv. campaign with other Dist. Lic.) * Tata Power Energy Club formed for curbing energy wastage gt MR AENER- JI
Slide 55: Human Resource Management
Human Resource Management TATA Long Term Settlement with the Union signed Succession Planning process implemented Competency Development exercise in progress Organization Transformation Initiatives are being implemented
Slide 56: Thank you
Thank you We take pride in Lighting up Lives! crenrows
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