PTC India Limited · NSE:PTC
PTC India — Investor Presentation (May 2009)
25 slides from PTC India's investor presentation, May 2009
Slide 1: Corporate Presentation
Corporate Presentation May 2009
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PTC India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Agenda
Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 3
Slide 4: Overview
Overview Genesis of PTC PTC Today Set up in 1999 at the initiative of Government of India with the PTC’s business includes Short term, Medium term, Long term following objectives: (including cross border) power trading and trading of power Promoting power trading to optimally utilize the existing th
Slide 5: Shareholding Pattern
Shareholding Pattern Others (including individuals) 19.2% Promoters 21.1% Insurance FI & Banks Companies Mutual Funds FIIs 5.5% 13.7% 13.6% 26.9% Source: NSE; As on December 31, 2008 5
Slide 6: Proven Track Record of Value Creation
Proven Track Record of Value Creation ing, Market Cap.: INR 15,772 mn ad w e r Tr s (US$ 311 mn**) an Po nesse i i Market leader in India in Ind y bus i n trading of power rs erg playe ted en g la Market share of ~ 46.5%# adin nto re le of the ying i 11,643## MUs traded if One divers Listed on BSE a
Slide 7: Uniquely Placed as an Integrated Energy Player
Uniquely Placed as an Integrated Energy Player Presence in Energy Value Chain Power Trading Direct Investments in Power projects Leading Market Position Network of relationships Fuel Intermediation Power Tolling Arrangements Strong relationships with key Market maker Advisory Services industry parti
Slide 8: Indian Power Sector Scenario
Indian Power Sector Scenario Historically characterized by Huge Energy Shortages Low Per Capita Consumption of Electricity** (billion units) 1,200 12.0% 8,365 9.6% 10,000 1,000 9.9% 10.0% 8.4% 8.8% 800 7.3% 739 8.0% 7,500 (kwh/year) 7.1% 691 666 632 625 591 2,980 559 548 579 5,000 2,596 600 546 519
Slide 9: Power Sector: Huge Capacities Planned
Power Sector: Huge Capacities Planned XIth Plan 2008 2009 2010 2011 2012 Generation: Capacity addition of 78,700 MW planned during XIth Plan period 36,874 MW (46.9%) in central sector; 293,372 ckm 26,783 MW (34.0%) in state sector; and 428,000 MVA 15,043 MW (19.1%) in private sector 198,089 ckm 251,
Slide 10: Agenda
Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 10
Slide 11: Growth Strategy - Presence in Energy Value Chain
Growth Strategy - Presence in Energy Value Chain Power Trading Subsidiaries, Associates and Fuel Intermediation Investments Short Term trading Long Term Arrangement to PTC India Financial Services secure fuel Medium Term trading PTC Energy Cross Border trading Power tolling arrangements - to Athena
Slide 12: Early movers in Short Term Power Trading
Early movers in Short Term Power Trading Market leader in power trading Traded volumes* increased from 1,617 MUs in FY 2002 to 9,889 MUs in FY2008 Purchase: 3515 MUs Supply: 8 MUs Purchase: 5579 MUs Sale of 11,643# MUs for period ended Dec 31, 08 Supply: 4829 MUs Transactions cover most of the State
Slide 13: Cross Border Trades with Bhutan and Nepal
Cross Border Trades with Bhutan and Nepal Bhutan Long term agreements in place for purchase of power from Bhutan Nepal West Seti: 750MW Chukha: 336 MW Kurichhu: 60 MW and Tala: 1,020 MW From the above mentioned three active projects in Bhutan, PTC purchased 5,228 MUs in FY 2008 5,579 MUs for 9 month
Slide 14: Long term arrangements for trading business
Long term arrangements for trading business Strategizing to increase the volume and mix of Medium and Long term trading contracts J&K (18MW) To reduce volatility in trading volumes Punjab (1542MW) Chandigarh (250MW) Entering into Long term PPAs with new IPPs and Captives with Haryana (1335MW) Sikkim
Slide 15: Investments in Energy Value Chain: PFS
Investments in Energy Value Chain: PFS Scope of business activities Investment Spectrum Invest in Greenfield projects, Brownfield projects and Power Exchange provide expansion capital on an ongoing basis Tolling projects To the companies engaged in identified target sectors Biomass projects Wind pro
Slide 16: Investments in Energy Value Chain: PFS
Investments in Energy Value Chain: PFS Investment Highlights India’s first electricity trading platform Power Exchange Made investment for 26% stake Total volumes traded approx. 3,540 MUs as of December 31, 2008 26% stake in an SPV - 10 MW Biomass project in Maharashtra Biomass Projects 26% stake in
Slide 17: Investments in Energy Value Chain (Cont'd.)
Investments in Energy Value Chain (Cont’d.) Business Description Investment and Stake Current status Athena won a bid to construct a Subscribed for 20% equity stake in 3000 MW Hydro plant in Arunachal Power project developmental Athena for a commitment of INR Pradesh ATHENA ENERGY company across gen
Slide 18: Fuel Intermediation
Fuel Intermediation PTC plans to play the role of aggregator of fuel Intend to purchase imported coal from individual suppliers Arrange for the aggregated amount to be sold to power plants for processing MoU/ equity stake Arrangements Such fuel would also be used for PTC’s Power Tolling Arrangements
Slide 19: Power Tolling Arrangements
Power Tolling Arrangements Power Tolling Arrangement Purchase of coal at competitive prices PTC to procure fuel (coal) for the power plant and pay an energy conversion charge to IPP The power so procured is to be owned and traded by PTC Supply of coal to IPP as Power Tolling Agreements (“PTA”) for 3
Slide 20: Uniquely Positioned: Relationships
Uniquely Positioned: Relationships Historical Relationships New Relationships Government of India Athena Power Projects Limited and IDFC Government of Bhutan Partners in Athena Energy Ventures Limited Nepal Electricity Authority Public Sector Undertakings Partners in Transmission Venture State Gover
Slide 21: Agenda
Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 21
Slide 22: Key Financials
Key Financials Revenues (in INR mn) PAT (in INR mn) 60,000 54,280 800 753 50,000 37,859 39,493 600 40,000 486 31,205 406 30,000 400 352 20,373 243 20,000 200 10,000 0 0 FY 2005 FY 2006 FY 2007 FY 2008 9 months FY 2005 FY 2006 FY 2007 FY 2008 9 months FY 2009 FY2009 Key Financial Highlights Revenues
Slide 23: Strong Board and Management Team
Strong Board and Management Team Corporate governance structure in line with Experienced and stable senior management team global best practices Senior Management Team Years of Board of Directors experience Mr. T. N. Thakur Chairman and MD 32 Mr. T. N. Thakur Chairman and MD Mr. Shashi Shekhar Direc
Slide 24: Agenda
Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 24
Slide 25: Highlights
Highlights Demonstrated Growth in Core Trading Business Steady Progress to emerge as an Integrated Energy Player Presence in Energy value chain by diversifying into related Energy Businesses Experienced and Strong Management Team 25