Coal India Ltd. · NSE:COALINDIA
Coal India — Investor Presentation (2009)
23 slides from Coal India's investor presentation, 2009
Slide 1: Coal India Limited: Energy Security, Growth & Sustainable Development
Coal India Limited Energy Security, Growth & Sustainable Development
Slide 2: Introduction
Introduction “Coal is the main source of energy in the country…..A new Coal Distribution Policy has been put in place…to make coal accessible to all…Coal India has been conferred Navaratna Status1 for speedy project implementation…” Excerpts of Address by the President of India to the Joint Session
Slide 3: Agenda
Agenda Coal Sector Overview Coal India Limited – Company Overview Sustainable Strategic Initiatives 3
Slide 4: Coal Sector Overview
4 Coal Sector Overview arte SSCs
Slide 5: Asia's Most Important Fuel
Asia’s Most Important Fuel Coal remains a key source of energy in the world Energy Consumption1 (2008) – Provides ~29% of global primary energy needs Hydro electric Nuclear Energy – Generates ~41% of world’s electricity 6.4% 5.5% Primarily used for power generation and metallurgy Natural Gas Oil
Slide 6: Coal Industry in India
Coal Industry in India Coal Reserves in India Total resources – ~267bn tonnes: 106bn proved, 161bn indicated/inferred Pakistan China 88% of production from opencast Nepal Bhutan mines; 12% from underground mines India Coal present in 14 out of 28 states Myanmar Indian coal is generally high
Slide 7: Indian Coal Industry in Context
Indian Coal Industry in Context Annual Per Capita Electricity Consumption Growth in India (units per capita) Global Coal Production by Country 3,000 2,782 2012 1,000 2,500 Million Tonnes / year 2006 631 2,000 2004 582 1,455 1,500 2001 408 993 1,063 Estimated 1990 238 1,000 58% Growth in 512 1980 131
Slide 8: Company Overview
¢ Company Overview
Slide 9: Vast Scale and Operations
Vast Scale and Operations Largest coal company in the world – Produced over 403mn tonnes in FYE Coal India Limited Subsidiaries Mar 2009 4 – 82% market share in India 3 1 8 – Over 400,000 employees Coal India Limited Access to vast untapped coal reserves Subsidiaries – Reserve base ~ 70bn tonnes
Slide 10: Completing a Major Transformation
Completing a Major Transformation PRE- NATIONALISATION PRAGMATISM LAUNCHING PAD ¾ Sector grew <2% ¾ Phase out budgetary support ¾ Highest production growth – 5.2 % CAGR ¾ Low returns ¾ Enforcing financial discipline over IXth plan ¾ Improvement in capacity utilisation ¾ Low investments ¾ Profitable
Slide 11: Presence Through the Value Chain
Presence Through the Value Chain Carried out in two stages: Regional and Detailed In 2008-09, 0.27mn meters of drilling has been achieved EXPLORATION Action initiated to enhance drilling capacity to 1mn meters annually 473 mines owned: – 279 UG – 163 OC COAL MINING – 31 Mixed Production in
Slide 12: Strong Track Record of Growth
Strong Track Record of Growth Growth in Coal Production… … While Improving Productivity1 % 430 R: 6 G 404 CA Coal Production (MTy) 410 625 5.0 380 587 Output per Manshift 390 Manpower (000's) 361 562 370 575 542 4.0 % 343 520 350 R: 5 501 330 CAG 324 525 485 3.0 306 468 310 291 475 452 2.0 439 280 4
Slide 13: Strong Cash Generation
Strong Cash Generation Average Annual Net Cash Flow from CIL to GoI Exchange rate of 48.39 INR/USD 13
Slide 14: Unmatched Strategic Relevance
Unmatched Strategic Relevance The Indian economy is expected to grow at 7.5% p.a. over the next 5 years – Access to electricity is a core element to achieving this growth Energy demand is growing at 7% per year in India – GoI has planned for an additional 79 GW1 to be build in the current 5-year
Slide 15: Sustainable Strategic Initiatives
Sustainable Strategic Initiatives
Slide 16: Key Strategic Initiatives
Key Strategic Initiatives Key Initiatives Targeting ¾ Enhancing Availability of Resources ¾ Sustainable Development ¾ Ensuring Accessibility of ¾ Growth Resources ¾ Profitability ¾ Increasing Acceptability ¾ Efficiency of Mining Practices ¾ Improving Profitability and Efficiency 16
Slide 17: Enhancing Availability of Resources
Enhancing Availability of Resources Drilling targets increased 4x — Aiming to convert ‘inferred’ and ‘indicated’ category of reserves to ‘proved’ category EXPLORATION Detailed drilling and projectisation of coal blocks allocated to captive block owners being carried out Systematic exploration
Slide 18: Ensuring Accessibility of Resources
Ensuring Accessibility of Resources Computer-aided mine planning for deeper OC mines Deploying high capacity equipment to achieve economies of OPENCAST MINING scale OITDS1 for efficient fleet management State-of-the-Art mass production technology being used Tapping large reserves below 300
Slide 19: Improving Profitability and Efficiency
Improving Profitability and Efficiency Ensuring competitive delivered energy cost vis a vis imported coal Economic Strategic cost reduction across operation value chain Reviving non-performing/loss making units Moving progressively to market driven pricing Improving corporate governance me
Slide 20: Increasing Acceptability of Mining Practices
Increasing Acceptability of Mining Practices “Mining with a human face” through socially sustainable inclusive development SOCIAL Inclusive model of all-round growth for Project Affected Peoples (PAPs) Providing employment and cash compensation to land losers Setting up 19 washeries with a c
Slide 21: Satellite Surveillance
Satellite Surveillance Land Use/Cover Map of Jayant OCP, NCL 2007 2008 21
Slide 22: Outlook
Outlook Coal Consumption / Demand in India ¾ Potential upside from coal price Actual Consumption Forecasted Demand Consumption/Demand (MT) converging to international prices 1,200 1,125 185 Average Annual post washing in future 900 732 105 130 600 465 69 352 92 835 57 38 ¾ Scope for further reductio
Slide 23: Thank You!
my Thank You! %,