Tata Power Company Limited · NSE:TATAPOWER
Tata Power — Investor Presentation (August 2022)
48 slides from Tata Power's investor presentation, Aug 24, 2022
Slide 1: Building Future Ready Tata Power
Building Future Ready Tata Power RESILIENT | PRO-ACTIVE | FUTURE READY 24th August 2022 …Message Box ( Arial, Font size 18 Bold)
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of and should not be construed as a prospectus, offering circular or offering memorandum or an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any
Slide 3: Key power sector developments
>8% power and 6% peak demand growth in last 1 year; 200 GW peak demand achieved in Mar 22 (12% y-o-y growth); Daily spot prices go up providing stranded thermal plants visibility on resolution Electricity Amendment Bill 2021 tabled in the Parliament with competition in power distribution, timely tar
Slide 4: Industry growth drivers
Industry growth drivers …Message Box ( Arial, Font size 18 Bold)
Slide 5: Demand growth and renewable potential
Rising Population & Urbanization to drive demand Demand expected to grow significantly RPOs to be increased from 15-20% to 47% by 2030 1.5 35% 40% 31% 26% 28% 30% 1 23% 18% 20% 1,632 47% 20% 0.5 10% Peak demand 1,841 0.4 0.5 0.7 0.8 1 1.2 1.4 bln growth of 15% 0 0% 1961 1971 1981 1991 2001 2011 2021
Slide 6: Transmission capex and distribution issues
Robust Transmission Capex planned State, Private, Rise in Short Cross border ~ ₹ 4.9 42% 23% Rising power demand - ~3.5 Term Open Access trade to rise ~ 25 – 40 GW lakh 4% CAGR transactions ~ cap addition Crore Rising Rising 6% growth p.a System by FY34 Central, penetration regional strengthening 35
Slide 7: Policy initiatives across sector segments
• Electricity • Power Storage (Amendment) Bill delicensing and • RDSS - digitalize participation in Discom & 33kv ancillary services grid strengthening • FAME Phase II and • ₹ 45,000 crore states’ EV policies Thermal green corridor Renewables • Thermal Bundling T&D • RPO increasing to Storage & EV •
Slide 8: Key achievements
Distribution base expanded from 2.6 Mln to Cell & Module manufacturing 6.2 GWp large projects commissioned; Utility >12 Mln customers expansion by 4 GW announced EPC order book grows to ₹ 14,000 crore 8th consecutive year being ranked no 1 Launch of Tata Power branded pumps; Number 1 EV Charging Pla
Slide 9: Building Future Ready Tata Power
Building Future Ready Tata Power …Message Box ( Arial, Font size 18 Bold)
Slide 10: India's most comprehensive Green Energy Platform
India’s most comprehensive Green Energy Platform …Message Box ( Arial, Font size 18 Bold)
Slide 11: 2022 vs 2027 targets across green businesses
2022 2027 5.5 GW Development 20+ GW Development Portfolio Portfolio – pure solar & wind – hybrid, RTC, Peak ₹ 6,000 crore p.a. revenue ₹ 20,000 crore annual revenue from Utility EPC Business from Utility EPC business 500 MW Cell & 635 MW 4.6 GW+ cell & module Module manufacturing capacity 385 MW p.a
Slide 12: Renewable capacity addition target
Solar Wind Storage 420 GW by 2030# Aspirational Capacity Addition Target 102 GW Installed by Mar’22 • 62 GW Solar 420 GW • 40 GW Wind (102 GW) (60 GW) In Pipeline ~260 GW 60 GW of Project Under Installation ~260 GW Balance till 2030 Strong and Healthy Pipeline >30 GW Per Annum …Message Box ( Arial,
Slide 13: Renewable portfolio and focus area
Current Portfolio Focus Area – ~20 GW p.a. Solar (incl floating), Hybrid, RTC and Peak generation capacity High pedigree offtakers – SECI, NTPC, A+ and above states Tie up with C&I customers, spare thermal & hydro capacity for RTC ~3 GW capacity addition p.a. 4,000 3,500 3,000 2,300 1,600 2,000 2,50
Slide 14: Renewables 2.0 and intelligent energy management
RENEWABLES 1.0 RENEWABLES 2.0 2030 Target of ~50% from Intelligent Energy GENERATION MANAGEMENT STORAGE/RTC SOLUTIONS Pumped Hydro Strongly positioned to expand into an intelligent Solar energy management platform leveraging on : Storage Battery Storage Charge ▪ Extensive experience, with multiple f
Slide 15: Improving success rate in renewables
Pre-Bidding Execution Operations • Best-in-class debt tie up and • In house manufacturing of •• Locking land with good refinancing to optimize Locking land with good yields yields & evacuation to • modules & WTG tie upoffor In house manufacturing & tx connectivity to optimize cost & delivery certain
Slide 16: Renewables execution enablers
• India’s most comprehensive Green Energy • Identified land parcels in potential States Platform established based on yields and connectivity fit for 1 GW • Blackrock & Mubadala have infused ₹ 2,000 solar and tie-ups for land to support approx. Crs in TPREL; balance funds expected in FY 23 600 MW Wi
Slide 17: Yield maximization and O&M optimization
Maximization • Strong advocacy to reduce curtailment of Yield • Cable uplifting & proactive testing to reduce faults / failures • Self O&M to lower cost and enhance reliability • Gain in yield (~0.5% to 1%) with horizontal deployment of • Minimize Demand Side Management (DSM) improvement initiatives
Slide 18: Utility scale EPC order book and market
₹ 14,000 cr order book of 3.7 GW (3rd party >50%) Future growth FY23 3rd Party Addressable Market ~ 8-10 GW (43% EPC & 57% BoS) >5 GW projects already under or likely to be auctioned soon Central PSU Bids & niche projects providing market share growth & better margins 300 MW Dholera, Gujarat - Mands
Slide 19: Drivers of growth to 25% market share
• 4 GW Cell & Module manufacturing to provide cost competitiveness – Target Domestic content projects • Flexibility to quickly upgrade • Providing turnkey solutions to technology/expand facilities Govt/PSU Developers with large RE targets incl land & Drivers of connectivity tie-ups growth to • Execu
Slide 20: Cell and module manufacturing
Solar Value Chain Costs in last 1 year 4 GW manufacturing built on experiences from 250 MW line built in CY21 Dec-20 Mar-21 Jun-21 Oct-21 Dec-21 29.4 ▪ P-Type Mono PERC; can be upgraded in future 27.4 to N-Type TOPCon 3,000 – 3,400 ▪ State level capital subsidies & PLI crore 14.5 21.3 21.8 ▪ Spare l
Slide 21: EPC execution strategy by year
FY 2023 2023 •• Contract Manufacturing Contract Manufacturing of of modules modulesunder supervision & • quality check and Digitize Standardize • Standardize and Digitize • Mechanization of • Mechanization of execution execution workstreams to save time to workstreams & FY FY 2024-25 2024-25 save la
Slide 22: Rooftop solar market growth drivers
26% CAGR, RES and C&I primary growth drivers Demand Drivers Segment Annual addition for Rooftop Solar1 (MW) 5 Yr CAGR Compelling economics: • Reduces eletricity bills by upto 80%+ 9,470 MW • Payback period of 4-7 years Residential Enabling regulatory ecosystem: 33% • Net Metering upto 500 kW • No ca
Slide 23: Rooftop business number one position
Tata Power Rooftop business has continued Number 1 position (for 8th year now) & significantly widened gap with competition 2196 16000 45% 13.0% MW Tata Power Solar MW Aspiration to achieve 35%+ market share by FY27 TPS MW 42% 14000 Mkt size MW 40% >3x gap with 39% Key Highlights: Market MS Share nu
Slide 24: Rooftop offerings and channel partner network
Jan – Dec 21 period: Presence across Multiple tie-ups EPC was 80%; Opex was 20% of orders all customer offer several segments options to customers 285 MW on-site capacity added, 112 MW open access during this period Onsite + Open Access Models Innovative products such as leveraging on Group Captive
Slide 25: Solar pumps market opportunity
LARGE MARKET OPPORTUNITY GROWING AT 25% EMPANELMENT & NETWORK TO DRIVE MULTIFOLD GROWTH 12,00,000 27% 30% 30% 30% 30% Installed base of Current Solar Pumps Solar Pumps Market Pumps in India in India (FY23) 10,00,000 25% ~₹ 13,000 crore 19% 30m+ 0.3m 8,00,000 20% 6,00,000 15% 4,00,000 10% 6,50,000 7,
Slide 26: Solar pumps differentiators
Cost Leadership Reach Brand Customer Delight Channel Partners Chaupal Meets Modules Nukkad 200 Rural Fairs 170 Nataks Other Costs 150 129 Marketing All India Van Radio 93 100 68 47 Localized Rural Services Structures 50 OBD Calls 15 Collaterals Marketing 0 BOS FY 18 FY 19 FY 20 FY 21 FY 22 FY 23P Pu
Slide 27: Solar pump market beyond FY26
Market till FY 26 Market Beyond FY 27 Share by pump type (% by number of installed pumps) • Subsidy for solarization expected to continue – Support for solarization is equivalent to agricultural electricity consumption Solar subsidy Diesel ~1% – Subject at intersection of two key objectives: agricul
Slide 28: EV charging strategy by segment
CATERING TO EVERY SEGMENT DIFFERENTIATED STRATEGY FOR THE 3 BUSINESSES Home Charging Captive Charging Public Charging 2300+ Pubic & semi-public CPs 400+ CPs on various National & State Highways (Private 4W) (Shared 4W & Bus) (Private & Shared 4W) ▪ 50%+ of Home Charging ▪ ~40% of Fleet 4W & Bus ▪ ~2
Slide 29: EV charging approach, partnerships and platform
KASHMIR Our Approach Our Partnership ▪ Destination Charging (Within Cities): Majority of ▪ Real Estate Groups: Replace home chargers with charging happens either at residence or workplace, dedicated public chargers hence maximum business opportunity lies in ▪ Petrol Pumps / Hotels / Retail outlets:
Slide 30: Position versus peers across green businesses
Renewables Utility Scale EPC (MWp) Renewable Capacity (GW) Commissioned Installed 10,705 In Pipeline 20.3 Pipeline 6,142 10.2 4,100 7.4 8.6 5.5 4.0 6220 1,975 1,580 5253 7.3 5.4 2000 3.8 3.6 2.7 1435 1300 1.7 Tata Power S&W L&T Vikram BHEL ReNew Adani Green Tata Power Greenko Azure NTPC As of Mar 22
Slide 31: Green business revenue and capacity targets
Renewables Utility Scale EPC (Revenue in ₹ crore) Renewable Capacity (GW) >3x >20GW 15,000 17,000 5.5 17.7 9,000 11.6 6,350 5.5 FY 22 A FY 27 P FY 22 A FY 27 P Solar Rooftop Revenue (in ₹ crore) Solar Water Pumps Revenue (in ₹ crore) EV Charging Point >6x >8x >9x 9,000 5,000 6,000 4,000 6,500 2,500
Slide 32: More Power to Consumers
More Power to Consumers …Message Box ( Arial, Font size 18 Bold)
Slide 33: Electricity Amendment Bill impact
1 ▪ Tariff determination within ▪ Multiple suppliers of 2 90 days and phasing out of electricity cross-subsidization to be a ▪ Provides private players big relief for DISCOMs entry into power ▪ Sets the path to cap TPDDL Cost reflective Multiple distribution business with and other DISCOM’s & timely
Slide 34: Revamped Distribution Sector Scheme
32% of the scheme AT&C loss target: 12-15% by outlay provided as grants FY2025 by Central Government Revamped Distribution Sector Scheme Benefits available for 33 kv Discoms selected based ACS-ARR Gap: Zero by Smart upgradati on pre-qualification FY 2025 Meters on criteria ▪ RDSS targets 250 mln met
Slide 35: Distribution privatization opportunities
Discoms still reeling under huge losses draining state resources PPP/DF opportunity for 30 Mln customers expected in next 15-18 months Jharkhand Madhya CY 2022 8.2 mln customers - 1.4 mln customers – Pradesh Ranchi / Jamshedpur Rajasthan PuUVNL 3 mln customers through UTs – 10.2 mln customers – J&K
Slide 36: Distribution operations and Odisha turnaround
Unparalleled Retail Distribution experience Mumbai Overall AT&C loss -0.70% Overall AT&C loss -6.80% Collection Efficiency -100.37% Collection Efficiency -100.36% Distribution Billing Efficiency- 92.86% Billing Efficiency- 98.93% TATA POWER –THE LARGEST PRIVATE PLAYER Consumer Base – 1.9 Consumer Ba
Slide 37: Distribution turnaround initiatives
Innovative Tech – Trolley mounted Sub-station, Automatic Voltage Regulator Transformer, etc Contractor Practice 24X7 Customer Digital Safety Mgt Yards Advanced Distribution Care Centres Payments Mgt System Billing & CRM ERP TAT Matrix Interactive Safety PPEs to for redressal Bills Audits Employees S
Slide 38: T&D consultancy and power trading
T&D Consultancy – India’s largest T&D Consultant offering end-to-end solution 1 System Integration 2 Management Consultancy Technology Advisory 3 Services 4 Managed Services Present in 23+ Worldwide Handled Project States & UTs of Presence in Outlay > 3.6 Billion 5 Capacity Building (T&D) India 16+
Slide 39: Transmission opportunities and strategy
FY 22 – Restart of Tx cycle Emerging Opportunities in TBCB – ₹ 87,000 crore bid pipeline in next 3 years NRSS XXXVI – Resurgent Platform ▪ 1st M&A in Transmission space ▪ 305 ckms network at 400 kV level ▪ Shorter construction timelines to lead to early start of revenues SEUPPTCL – Resurgent Platfor
Slide 40: …Message Box ( Arial, Font size 18 Bold)
…Message Box ( Arial, Font size 18 Bold)
Slide 41: Leading utility transition to clean energy
Leading utility transition to clean energy Evolving Generation Mix (%) 2015 2022 Decarbonisation Innovation Renewable growth Demand side …Message Box ( Arial, Font size 18 Bold) Management 41
Slide 42: FY27 targets and growth
2X CAPACITY GROWTH TO 30 GW: ~75% PORTFOLIO ‘CLEAN & POTENTIAL UPSIDE TO FY27 TARGET OF 3X CONSUMERS & 2X T&D GREEN’ REVENUE GROWTH NEXT 5 YEARS CAPACITY MIX >₹ 60,000 cr ~₹ 27,000 cr 40 Mln Distribution 12.3 Mln Privatization Opportunities Hybrid; 32% Solar; 32% Customers Revenue Customers Revenue
Slide 43: An All-round Utility of the Future
An All-round “Utility of the Future” Market Leadership in EV charging – 125,000+ home chargers p.a. & 25,000+ other charging points by 2027 Market Leadership in Rooftop and Solar Pumps - grow to ₹ 15,000+ Crore combined revenue by 2027 Grow 5 GW Renewable portfolio to 20 GW by 2027 Expand Distributi
Slide 44: To deliver sustainable shareholder returns
To deliver sustainable shareholder returns …Message Box ( Arial, Font size 18 Bold)
Slide 45: Capital employed and capex mix
FY 22 Capital Employed – ₹ 65,600 crore 5 Yr CAPEX – ₹ 1,00,000+ crore FY 27 Capital Employed – ₹ 1,60,000+ crore Capital Employed - FY 22 5 years Capex Mix Capital Employed - FY 27 Others Generation 4% 4% T&D Generation T&D T&D CGPL, C&S 18% 11% 17% 14% 9% Utility scale RE, Solar Manufacturing, 80%
Slide 46: Revenue, PAT, returns and debt metrics
Revenue (in ₹ cr) PAT (in ₹ cr) >3x >4x 42,576 29,493 28,948 33,239 2,298 1,274 1,231 1,424 FY 19A FY 20A FY 21A FY 22A FY 27E FY 19A FY 20A FY 21A FY 22A FY 27E Returns Profile Debt Metrics >13% 5.19 4.70 4.09 3.92 8.4% 8.9% <3.50 7.9% 6.1% >11% 8.5% 7.0% 5.4% 5.6% 2.19 1.99 1.43 1.53 <1.50 FY 19A
Slide 47: Our ESG Journey
Our ESG Journey Empower a billion lives through sustainable, affordable & innovative energy …Message Box ( Arial, Fontsolutions size 18 Bold)
Slide 48: Thank You!
Disclaimer: The contents of this presentation are private & confidential. Please do not duplicate, circulate or distribute without prior permission. Thank You! Website: www.tatapower.com Email Id: investorrelations@tatapower.com Private and Confidential | …Message Box ( Arial, Font size 18 Bold)
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