Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2013)
44 slides from Ntpc's investor presentation, Aug 1, 2013
Slide 1: Investors Presentation
INVESTORS PRESENTATION 1ST August 2013 Presentation by Sh. A.K. Singhal Director (Finance)
Slide 2: NTPC: Vision and Core Values
NTPC: VISION AND CORE VALUES Vision To be the world’s largest and best power producer, powering India’s growth Mission Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco friendly technologies and co
Slide 3: Outline
OUTLINE About NTPC Recent Financial Highlights Opportunities and Sectoral Growth Drivers Competitive Position Risks and Mitigants Growth and Capex Plans Sustainability Initiatives
Slide 4: NTPC: Snapshot
NTPC: SNAPSHOT Incorporated as a Government company in 1975; amongst 7 Maharatna GoI companies, empowered to make its own As of July 31, 2013 total installed power generation investment decisions capacity of 41,184 MW (including 5,364 MW through other group companies) Accounts for 18.44% of Ind
Slide 5: Year of Records: 2012-13
YEAR OF RECORDS: 2012-13 Year Wise Commercial Capacity Addition (NTPC Group) (MW) Year Wise Capex (NTPC Group) Rs. Crore 4830 25,299 19,973 16,473 15,184 14,335 2000 1490 1600 1160 500 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2008-09 2009-10 2010-11 2011-12 2012-13 Year Wise Installed Capacit
Slide 6: What We Promised Is What We Delivered
WHAT WE PROMISED … IS WHAT WE DELIVERED Actual Performance Against Commitments Made to Investors as of 1 August, 2012 Guidance Performance 1 Improve upon PAF of previous year (FY12) i.e. >88.35% PAF FY13 :87.62% ( PAF Oct–December 2012: 88.56% and Jan-Mar 2013 : 92.66%) 2 Commissioning of bala
Slide 7: NTPC Group: Pan India Presence
NTPC GROUP: PAN INDIA PRESENCE Geographical Spread of NTPC Group Capacity (As of March 31, 2013) National Eastern Koldam Capital Region (800MW) Region 21% 15% Dadri (817MW) Dadri SolarPV (5MW) Faridabad (430MW +5MW Solar) Lata Tapovan (171MW) Tapovan Vishnugad (520MW) Badarpur (705MW) NCTPP (1,820MW
Slide 8: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS
Slide 9: Financial Highlights 2012-13
FINANCIAL HIGHLIGHTS 2012-13 Assets Growth Financial Year 2013 125 16% CAGR FY09 FY10 FY11 Year FY13 FY12 %Change 100 FY12 FY13 Rs.Thousands crore Key P&L Highlights 75 50 Total Revenue 68,775.51 64,841.88 +6.1% 25 Profit Before Tax 16,578.63 12,326.16 +34.5% 26% CAGR - Net income 12,619.39 9,223.73
Slide 10: Financial Highlights Q1/FY14
FINANCIAL HIGHLIGHTS Q1/FY14 Position Statement Q1FY14 Income Statement Q1FY14 Quarter Ended Q1/FY14 Q1FY13 % change Quarter Ended Q1/FY14 Q1/FY13 % change Key Balance Sheet Highlights Earnings Highlights Fixed Assets incl. CWIP 103,540.48 90,451.73 +14.5% Revenue from Operation 15,661.85 16,165.95
Slide 11: Opportunities and Sectoral Growth Drivers
OPPORTUNITIES AND SECTORAL GROWTH DRIVERS
Slide 12: Power Demand Supply
POWER DEMAND SUPPLY Peak Power Supply Position (GW) Power deficit scenario 109 97 110 104 119 110 122 116 130 123 135 has sustained despite capacity 91 addition – 8.7% energy deficit in FY13 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 (~87BU) % Peak Deficit – 9.0% peak deficit in FY13 Capacity Peak Requir
Slide 13: 12th Plan
12TH PLAN India has a Large Capacity Requirement … … with Significant Investments Planned in the Sector Capacity in GW 960 12th Plan (2012–17) 778 Capacity excl. RES (MW)1 88,536.6 737 337 555 306 223 Expected Investments in Power 14,99,914 83 114 Sector (Rs. Crore)2 Present 8% Growth 9% Growth 8% G
Slide 14: Competitive Position
COMPETITIVE POSITION
Slide 15: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS Leadership Position in the Indian Power Sector Long-term Fuel Security High Operational Efficiency Ability to Turn Around Underperforming Power Stations Low Cost Power Producer Prudent Off-take Policy Strong Balance Sheet Competent and Committed Workforce Integrated Busines
Slide 16: Market Leader
MARKET LEADER Financial & Physical Dominance Reliance Tata Adani JSW Thermal capacity comparison (in MW) Rs Crore Power Power Power Energy (as on 31.03.2013) Market Cap as 1,22,157 19,327 21,892 12,234 7,569 on 01.07.2013 Installed 41.2 2.5 8.5 5.9 3.1 Capacity(GW) FY13 Assets 1,61,116 51,934 28,093
Slide 17: Long-term Fuel Security
LONG-TERM FUEL SECURITY Capacity Break-up (By Fuel)1 Gas Implements projects only upon establishing availability of fuel Current Capacity 11% ‘Maharatna’ status provides very high level of autonomy with regards to investments in backward integration and new fuel sources Break-up Coal 89% By 20
Slide 18: Status of Coal Supply Agreements
STATUS OF COAL SUPPLY AGREEMENTS •Long Term CSAs available for 87.5% of current standalone installed capacity •Long Term CSAs signed for all stations commissioned prior to 01.04.2009 i.e. for 23895 MW •For Units commissioned after FY09 (including 1660 MW yet to be commissioned): • Out of standalone
Slide 19: Long-term Fuel Security (Cont'd)
LONG-TERM FUEL SECURITY (CONT’D) Coal Supply Coal Requirements FY14E to FY17E (For NTPC Own Plants) (In MT) 91.5% 94.1% 92.4% 90.1% 178 198 215 218 15.8% 18.4% 10.1% 19.5% 1.1% 1.7% 4.3% 8.6% 15.1% 1.0% 0.9% 0.9% 8.5% 5.9% 7.6% 9.9% 81.4% 75.2% 73.8% 72.0% FY12 FY13 Q1FY13 Q1FY14 Domestic Imported (
Slide 20: Captive Coal Blocks for Long-term Fuel Security
CAPTIVE COAL BLOCKS FOR LONG-TERM FUEL SECURITY (CONT’D) Six coal mining blocks allocated to NTPC – Pakri Barwadih, Talaipalli, Dulanga, Kerandari, Chatti Bariatu and Chatti Bariatu (South) – Estimated geological reserves of over 3BT – Incurred cumulative Capex of Rs.1,536 crore till Q1FY14 – Targ
Slide 21: New Coal Blocks
NEW COAL BLOCKS 4 new coal mining blocks allocated to NTPC –Banai (Chhatisgarh), Bhalmuda (Chattisgarh), Chanrabila (Odisha), Kudanali-Laburi (Odisha) –Estimated geological reserves of ~ 2BT –Estimated Capacity : 45MTPA of which 2.5 MTPA for J&K Coal Blocks Particulars Banai Bhalmuda Chandrabila K
Slide 22: Diversifying Fuel Mix
LONG-TERM FUEL SECURITY (CONT’D) Long-term gas supply agreements with GAIL Details of Gas/RLNG tie ups for NTPC Existing Gas under APM for supply of gas to all directly- Stations Contracted owned gas power stations at regulated Source/ Quantity Contract pricing under Government orders Gas: Long-te
Slide 23: Highly Efficient Plant Operations
HIGHLY EFFICIENT PLANT OPERATIONS Proven Operational Excellence Among lowest cost producers of power in India 88.7% 92.1%92.2% 90.2%* Successful in growing and achieving high PLF despite 84.1% 83.6% 83.1% 87.4%* 78.6% 79.1% 75.2% 72.2% 69.9% fuel shortage concerns in India 64.7% 68.8% In FY13,
Slide 24: Sustaining Its Status of Competitive Cost Power Producer
SUSTAINING ITS STATUS OF COMPETITIVE COST POWER PRODUCER Rs/kWh 2.96 2.96 2.92 2.63 2.27 2.12 2.05 1.95 1.77 1.84 1.53 1.51 1.08 1.01 0.86 0.91 0.76 0.59 2008-09 2009-10 2010-11 2011-12 2012-13 Q1FY14 Average Tariff Fuel Charges Fixed Charges Coal Based Plants Close to Pit Head Stations Ensure Compe
Slide 25: Prudent Off-take Policy
PRUDENT OFF-TAKE POLICY Secured Off-take Bolstered by a Regulated Pricing Mechanism … PPAs have been signed for all operating and Tariffs based on Regulations notified by CERC for the period 2009–2014 under construction projects Capacity charges: Allowed to recover the capacity charge in full
Slide 26: Robust Financials - Proven All Round Track Record
ROBUST FINANCIALS- PROVEN ALL ROUND TRACK RECORD Capacity (NTPC Group) Generation (NTPC Standalone) 41184 232.028 MW Units in Billion 220.54 34194 20249 133.19 16795 99.16 11333 61.57 3100 20.82 200 0 1996-97 1981-82 1986-87 1991-92 2001-02 2010-11 2012-13 1981-82 1986-87 1991-92 1996-97 2001-02 201
Slide 27: Robust Financials Contd..
ROBUST FINANCIALS CONTD.. Total Debt and Capitalization1 Debt/Equity Rs. Crore 0.69x 0.72x 138534 0.61x 0.64x 123571 0.60x 111080 100234 91938 58146 50279 37797 43188 34568 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 Total Debt Capitalisation Interest Service Coverage Ratio1 Current
Slide 28: Human Resource Metrics
HUMAN RESOURCE METRICS Over 5 years number of employees have remained constant 23639 23743 23797 24011 23865 Sales per Value Added employee has per employee grown from has gone up Profit per Rs.1.91 crore from Rs.0.59 employee has to Rs. 2.85 cr in FY09 to grown from crore over 5 Rs.0.96 cr in Rs.0.
Slide 29: Presence Across the Power Value Chain
PRESENCE ACROSS THE POWER VALUE CHAIN Integrated Business Model – Within the Business and Across the Value Chain Coal Mining Equipment Power Power Distribution/ Power Trading & Exploration Manufacturing Generation Consultancy Services 10 coal mining blocks NTPC has formed JVs Total installed p
Slide 30: Global Footprint
GLOBAL FOOTPRINT Trincomalee Sri Lanka Map not to scale. Sri Lanka (Trincomalee) Bangladesh Bhutan 2x250MW coal based power project 1320MW imported coal based power plant at Khulna Being Developed through a 50:50 JV Co. with BPDB on Agreement with Royal in Trincomalee through a JV Co. BO
Slide 31: Risks and Mitigation
RISKS AND MITIGATION
Slide 32: Key Risks and Mitigation
KEY RISKS AND MITIGATION Risk Mitigation Coal and Gas Supply Long term Fuel Supply Agreements signed with CIL for supply of coal for a period of 20 years for stations set up prior to Constraints March 2009 – ACQ supply tied up ~124.9MT FSA being signed for post 2009 stations, FSA for 4.76 GW sig
Slide 33: Growth and Capex Plans
GROWTH AND CAPEX PLANS
Slide 34: Growth Visibility
GROWTH VISIBILITY NTPC takes the decision to proceed with a new project only once it is satisfied on the availability of land, water, fuel, off-take arrangements and environmental clearances. Vision to maintain leadership position in India…Current development pipeline of 42.3GW 128000 (In MW) 85503
Slide 35: Capacity Addition Scheduled in 12th Plan
CAPACITY ADDITION SCHEDULED IN 12TH PLAN Year Project MW FY13 Sipat 660 Indira Gandhi STPP JV 500 Mouda – I, Unit - 1 500 Vindhyachal – Unit 11 500 Rihand – III 500 Vindhyachal – Unit 12 Units Commissioned 500 Mouda – I, Unit- 2 500 Vallur – I JV 500 Solar PV (A&N, Dadri) 10 Total FY 13 4,170 FY14 R
Slide 36: Regulated Equity Growth
REGULATED EQUITY GROWTH Regulated Equity (Standalone) (Rs. Crore) Capacity Growth (Standalone) (MW) 37000 36340 Regulated Equity 35820 34820 30830 3265030990 29830 8% Growth 20% Growth 35217 7% 32576 Growth 7% Growth 27162 25408 FY11 FY12 FY13 FY14E 23741 Installed Capacity Commercial Capacity Comme
Slide 37: Sustainability Initiatives
SUSTAINABILITY INITIATIVES
Slide 38: Sustainability Initiatives
SUSTAINABILITY INITIATIVES Renewable and Nuclear Energy—Reducing Environmental Initiatives—More Than 34 Million Tons of CO2 Carbon Footprints has been Avoided in NTPC Technology Monitoring Energy Sustainability Own Basket In Partnership JNNSM Conservation Choices Systems Report Pan-Asian NVVN2 a
Slide 39: Technology Progression: Increased Efficiency and Greater Environmental Protection
TECHNOLOGY PROGRESSION—INCREASED EFFICIENCY AND GREATER ENVIRONMENTAL PROTECTION Leader in introducing new technologies in the power sector. Technologies Introduced Technologies Under Development Adoption of super critical parameters for higher efficiency Development of IGCC suitable for Indian
Slide 40: R&D - NETRA
R&D- NETRA Committed to invest up to 1% of distributable profit for R&D Activities and Climate Change Technologies. Efficiency Improvement and Cost Climate change Renewable energy Reduction Waste heat recovery from flue gas Pressure Swing Adsorption based CO2 40 TR Solar Thermal Air capture te
Slide 41: Extensive Engagement with Society
EXTENSIVE ENGAGEMENT WITH SOCIETY NTPC has committed to contribute 1% of Net Profit towards Sustainable Development from FY 2013-14 onwards Adopted 17 ITIs and creating 9 new ITIs Land acquisition through a participatory Sponsored around 750 youth from villages in process the vicinity of NTPC
Slide 42: Disclaimer
DISCLAIMER This presentation is issued by NTPC Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securitie
Slide 43: Thank You
THANK YOU $e Q&A
Slide 44: Organizational Depth and an Experienced Team
ORGANIZATIONAL DEPTH AND AN EXPERIENCED TEAM NTPC has the Platform and Experience to Manage a Large and Growing Portfolio 25,484 employees1 Chairman and Managing Director Director Director Director Director Director Director (Operations) (Technical) (Projects) (Commercial) (Finance) (HR) RED ED (Ope