Power Grid Corporation Of India Limited · NSE:POWERGRID
Power Grid Corporation Of India — Investor Presentation (October 2012)
33 slides from Power Grid Corporation Of India's investor presentation, October 2012
Slide 1: any
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Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any secur
Slide 3: Company Overview
Company Overview Key Highlights Investment Programme New Initiatives One Nation, One Grid 3
Slide 4: POWERGRID Today and Vision
POWERGRID Today CENTRAL GoI DIVIDEND CONSISTENTLY A NAVRATNA LISTED ENTERPRISE TRANSMISSION COMPANY Shareholding PAYING SINCE RATED ‘EXCELLENT’ UTILITY 69.42% 1993-94 BY GoI Vision World Class, Integrated, Global Transmission Company With Dominant Leadership in Emerging Power Markets Ensuring Reliab
Slide 5: POWERGRID Today
POWERGRID Today FY11-12 Tr. Lines Sub-stations X-formation Capacity Availability 99.94% 95,850 ckm 157 144,300 MVA Reliability 0.59 trippings/ line Inter-Regional Carries Innovation Capacity Telecom Network 50% of total power Technology (1200kV1) 25,000 km 28,000 MW generated in India Market Design
Slide 6: Long History & Rich Experience in Power Sector in India
Long History & Rich Experience in Power Sector in India Adopts ‗Vision‘ • 1200kV test line charged • Projects secured through TBCB • Partners GoI for NOFN Notified as a Navratna Company FY 2013 Diversification into Telecom Business FY 2012 FY 2011 Notified as Initial Public Offering. Mini Ratna List
Slide 7: Physical Growth over past two decades
Physical Growth over past two decades (As on 15.09.2012) 144,300 124,525 95,850 92,981 157 150 22,228 12,201 39 Transmission Lines Transformation Substations (Ckm) Capacity (Nos.) (MVA) 1992-93 2011-12 At Present One Nation, One Grid 7
Slide 8: Financial Growth over past two decades
Financial Growth over past two decades 11,525 1,961 9,670 592 6,167 115 43 640 Turnover Net Profit Gross Assets Manpower (US$ Million) (US$ Million) (US$ Million) (Nos.) 1992-93 2011-12 • Turnover 16x • Profit 13x • Asset Growth 17x • Manpower 0.6x One Nation, One Grid 8
Slide 9: Power Map of India: POWERGRID Network
POWER MAP OF INDIA POWERGRID Network The Central Transmission Utility and National/ Regional Grid Operator1 1. Through Power System Operation Corporation Limited (POSOCO), a fully owned subsidiary of POWERGRID One Nation, One Grid 9
Slide 10: Key Highlights
Company Overview Key Highlights Investment Programme New Initiatives One Nation, One Grid 10
Slide 11: Key Highlights
Key Highlights 1 Established execution track record 2 Proven Growth Track Record 3 Conservative Capital Structure 4 High Operational Efficiency 5 Attractive and Visible Growth Prospects in Consulting and Telecom Business One Nation, One Grid 11
Slide 12: Established Execution Track Record
1 Established Execution Track Record Execution Track Record Capex Targets Achieved… (US$ bn) Consistent successful execution of projects 3.22 3.24 Amongst few PSUs to meet their XI Plan — 95,800 ckm of transmission lines carrying ~50% of total power capex targets generated in the country 2.16 2.2
Slide 13: Proven Growth Track Record
2 Proven Growth Track Record Revenues (US$ mn) Total Assets1 (US$ mn) 1 - Total Assets = Net Block + WIP + Investments + Current Assets $1,961 $16,766 $1,655 $1,365 $13,769 $1,116 $11,557 $924 $9,876 $7,859 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EBITDA and ROA2 (US$ mn) 2 - Due to expansi
Slide 14: Conservative Capital Structure
3 Conservative Capital Structure Total Debt and Networth (US$ mn) Operating Cash Flow and Total Cash (US$ mn) $9,709 $1,207 $1,204 $1,281 $1,035 $7,434 $6,257 $5,175 $736 $4,048 $4,271 $544 $656 $3,882 $486 $467 $2,658 $2,894 $373 $2,455 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Total Debt N
Slide 15: High Operational Efficiencies
4 High Operational Efficiencies Asset Management Lines Sub- Stations 747 Nos. 157 Nos. 42 95,850 ckm 144,300 MVA Sub-stations operated remotely including 10 unmanned sub- stations FY11-12 NTAMC Availability 99.94% • Implementation started Reliability 0.59 trippings/ line • Maintenance Service Hubs e
Slide 16: Growth Potential in Consulting Business
5 Growth Potential in Consulting Business 116 Assignments for Projects worth USD 2.32 billion (balance cost) under execution Major Clients include: • Utilities in States/ UTs • Central PSUs • Central Govt. Organizations (Indian Navy, Railways) • Private Utilities Major Projects • Companies in Priv
Slide 17: Growth Potential in Consulting Business
5 Growth Potential in Consulting Business 19 Assignments for Projects worth USD 500 mn (balance cost) under execution Footprints Existing Footprints in 11 countries Tajikistan Bhutan Myanmar Afganistan Nepal Bangladesh UAE Bangladesh Nigeria Ethiopia Sri Lanka Kenya • Consultancy • SAARC • Asset Foc
Slide 18: Growth Potential in Telecom Business
5 Growth Potential in Telecom Business Network Coverage: •Project size: USD 1.09 • POWERGRID share USD 727 billion million to connect 50,000 o About 25,000 km •POWERGRID share out of 2,50,000 panchayats USD 163 million Network Reach: All India; covering Pilot Project more than 200 cities (incl
Slide 19: Investment Programme
Company Overview Key Highlights Investment Programme New Initiatives One Nation, One Grid 19
Slide 20: Power Sector Overview – XII Plan
Power Sector Overview – XII Plan Generation • Peak Demand 198GW • Capacity Addition 88 GW • Capacity Addition RE 30 GW • Fund Reqt. ($ 32,727 million) Transmission • Fund Reqt. $ 55,679 million Distribution • inter-State (incl. Pvt) $22,728 million • incl. $ 1,727 million for Smart Grid • intra-Stat
Slide 21: Road Ahead........ POWERGRID
Road Ahead........ POWERGRID Total Projects in hand worth US$ 22 HCPTC under implementation billion Ongoing Projects: US$16 billion Projects include Development of 11 High Capacity Power Transmission Corridors (HCPTC) - US$ 13.5 billion Transmission capacity addition by 2017 24,000 ckm of
Slide 22: Investment for XII Plan
Investment for XII Plan Grid (US$ in million) Strength., 2,091 12% CS Gen, FY16-17 FY12-13 4,091 22% 3,818 3,636 UMPP, 2,046 FY13-14 14% FY15-16 IPP, 3,455 3,636 9,454 52% FY14-15 3,636 Projects/ Schemes Capital Outlay Investment Approved - $ 15,273 million Contracts awarded for Project Cost: $ 12,7
Slide 23: Funding for XII Plan
Funding for XII Plan Investment planned in Debt-Equity ratio of 70:30 Requirement Sources Equity $5,091 - $5,454mn through Internal Accruals Total Domestic Market Investment • Bonds • Line of Credit from SBI Programme of $ 18,182 Foreign Currency Debt million • Govt. guaranteed funds from IFIs like
Slide 24: XII Plan Investment Programme (Year-wise)
XII Plan Investment Progamme (Year-wise) (US$ in million) Investment FY13 FY14 FY15 FY16 FY17 Total Capex 3,636 3,455 3,636 3,636 3,818 18,182 Debt Requirement 2,546 2,418 2,546 2,546 2,673 12,727 Already Tied Up 1,454 946 654 509 436 4,000 Domestic 909 182 182 182 1,454 Foreign 545 764 472 328 436
Slide 25: Foreign Currency Borrowings
Foreign Currency Borrowings Balance Loans to be utilized during XII Plan $ 2,735 million1 3,125 2,275 1,015 1,035 767 685 World Bank ADB Supplier's Credit Loans signed (million $) Balance (million $) 1- Balance Loans as on 31st Mar, 2012 One Nation, One Grid 25
Slide 26: Domestic Borrowings – Bonds
Domestic Borrowings – Bonds Bonds issued during last 5 years Amounts in equivalent million USD 1st 2nd 3rd 4th 5th Total for the year FY12, 1763 Tenure: Door-to-Door: 15 years 328 156 FY11, 1158 FY10, 984 363 188 634 FY09, 673 FY08, 504 372 561 236 128 182 524 436 424 356 193 FY08 FY09 FY10 FY11 FY1
Slide 27: Domestic Borrowings – Bonds (Coupon)
Domestic Borrowings – Bonds (Coupon) Bond Issue One Nation, One Grid 27
Slide 28: New Initiatives
Company Overview Key Highlights Investment Programme New Initiatives One Nation, One Grid 28
Slide 29: Smart Grid / City
Smart Grid/ City DPRs submitted Smart City (Puducherry) Firozabad (UP)/ Katra (J&K) • Work to commence in Aug‘12 Pre-Feasibility Studies (interim arrangement) Chitradurga (Karnataka)/ Tuticorin (TN)/ • Phase-I expected by Sep‘12 to Gandhinagar (Jammu)/ Charar-e-Sharif , Gulmarg, demonstrate in limit
Slide 30: Green Energy Corridors- Grid Integration of Renewable Energy
Green Energy Corridors- Grid Integration of Renewable Energy GREEN ENERGY CORRIDORS Transmission Plan for Envisaged Renewable Capacity $ 7,636 million investment in transmission for 40 GW Planning of intra-State/inter-State Study Report on Green Energy Corridors Transmission requirements Submi
Slide 31: Green Energy Corridors- Grid Integration of Renewable Energy
Green Energy Corridors- Grid Integration of Renewable Energy One Nation, One Grid 31
Slide 32: Business Opportunities
Business Opportunities Backward Integration • Joint venture companies contemplated for manufacturing of material and equipment JVs with States for intra-State Transmission • Discussions under way with Bihar, Odisha, Jharkhand, Chhatisgarh, Manipur, UP, MP, Tamil Nadu, Karantaka Distribution • RGGVY
Slide 33: Thank You
Thank You One Nation, One Grid 33
Power Grid Corporation of India — Investor Presentation (October 2012) on 6ix