Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2006)
46 slides from Ntpc's investor presentation, Aug 1, 2006
Slide 1: A Presentation on NTPC Limited
A Presentation on NTPC Limited by Mr. A.K. Singhal Director (Finance), NTPC at 2nd Analysts & Investors Meet 1st- 2nd August 2006
Slide 2: Forward-looking statements disclaimer
The information contained in this presentation contain forward looking statements. Actual result may vary materially from those expressed or implied, depending upon economic conditions, government policies and other factors. Any opinion expressed is given in good faith but is subject to change witho
Slide 3: Corporate vision and Core Values
Corporate vision and Core Values Corporate Vision: “A world class integrated power major, powering India’s growth, with increasing global presence” Core Values: B-Business Ethics C-Customer Focus O-Organizational & Professional pride M-Mutual Respect and Trust I- Innovation & Speed T-Total quality f
Slide 4: Contents
Contents 1 Overview 2 Performance Highlights – Year and Q1-07 3 Strategies 4
Slide 5: Evolution of NTPC
Evolution of NTPC 1975 1997 2004 2005 NTPC was set up in 1975 In 1997, Government of NTPC became a listed The company rechristened with 100% ownership by India granted NTPC company with majority as NTPC Limited in line the Government of India. status of “Navratna’ being Government ownership of with
Slide 6: NTPC Group
NTPC Group NTPC Limited Subsidiaries Subsidiaries NTPC NTPC Vidyut Vidyut Vyapar Vyapar NTPC NTPC Electric Electric Supply Supply Pipavav Pipavav Power Power NTPC NTPC Hydro Hydro Limited Limited Nigam Limited- Nigam Limited- Co. Co. Limited Limited Development Development Co. Co. Ltd Ltd 100% 100%
Slide 7: Company Overview
Company Overview A national generation company, supplying electricity to all major states Kol Dam(1) (800 MW) Installed capacity of 26,194 MW (including owned DADRI FARIDABAD (817 MW) thru joint ventures) , projects spread geographically (430 MW) NCTPP BTPS (840 MW) across the country (705 MW) TANDA
Slide 8: Contents
Contents 1 Overview 2 Performance Highlights – Year and Q1-07 3 Challenges and Strategies 8
Slide 9: Performance Highlights – Fiscal 2006 & Q1-07
Performance Highlights – Fiscal 2006 & Q1-07 1 Capacity Growth 2 Physical Performance 3 Commercial Performance 4 Financial Performance 5 Others 9
Slide 10: Capacity Growth
Capacity Growth Capacity added in the previous year 500 MW commissioned at Rihand Increase in capacities in Q1 25140 705 MW Badarpur Thermal Station transferred to NTPC 23935 w.e.f. June 1, 2006 23435 500 MW commissioned at Vindhyachal 740 MW capacity of Ratnagiri 21435 JV 20935 Total capacity 19935
Slide 11: Physical Performance – Generation
Physical Performance – Generation Generation for the year grew by Generation 7.55% 171 (Billion Units) 171 BUs generated against 159 BUs in previous year 159 Generation for Q1-07 has grown 149 by 8.83% over corresponding quarter in previous year 141 45,061 MUs against 41,406 MUs 133 130 2001 2002 20
Slide 12: Physical Performance – Capacity utilization
Physical Performance – Capacity utilization 88 88 Fiscal 2006 Fiscal 2005 84 84 81 NTPC Coal Stations 87.54% 87.51% 69 69 70 69 Gas stations 65.81% 65.35% 66 Rest Q1- Q1-07 Q1- Q1-06 NTPC PLF Vs Average PLF of Coal Stations 87.76% 87.26% Other generators in India Gas Stataions 72.03% 68.06% 2001-02
Slide 13: Physical performance – Market Share
Physical performance – Market Share (as of March 31, 2006) Capacity (MW) Generation (BUs) NTPC 24249 NTPC 20% 171 28% Rest Rest 446 100038 72% 80% More than one-fourth of India’s generation with one-fifth capacity The next largest power utility owns 5.9% of market share in terms of capacity and 7.2%
Slide 14: Commercial Performance
Commercial Performance 100% realization in the fiscal 2006 of the amounts billed to the customers Same trend continues in the first quarter of fiscal 07 Letters of Credits to the extent of 105% of average monthly billing established by all customers Timely Servicing of Bonds under One-time-settlemen
Slide 15: Financial Performance – For the Year 2005-06
Financial Performance – For the Year 2005-06 Rs.Million Fiscal 2006 Fiscal 2005 % change Total income 287,530 255,414 12.57% Sales 261,429 225,650 15.86% Other income 26,101 29,764 (12.31%) Total expenditure 197,244 164,906 19.61% Fuel 163,947 137,235 19.46% Depreciation 2,0477 19,584 4.56% Interest
Slide 16: Financial Performance – Quarter
Financial Performance – Quarter Rs.Million The gross revenues have grown Q1-07 Q1-06 by 17.87% % change Sales have registered an increase Total income 77,905 66,095 17.87% of 18.11% Sales 71,536 60,567 18.11% Profits have grown by 18.65% Other income 6,369 5,528 15.21% Total expenditure 51,576 45,14
Slide 17: Financial Performance – Quarter
Financial Performance – Quarter Rs.Million As in the past the company has Q1-07 Q1-06 % change disclosed certain adjustments which Reported PAT 15528 13087 18.65% are included in the reported results Adjustments On an adjusted basis the profits for Previous year sales -939 -308 the current quarter h
Slide 18: Other key highlights (April to July)
Other key highlights (April to July) Capacity target upgraded – NTPC Board has given investment from 17,000+ to 21,000+ for the approvals for the following projects XI plan period (2007-2012) 600 MW Hydroelectric Power The government of India Project at Loharinag Pala in the owned 705 MW Badarpur St
Slide 19: Other key highlights … Contd.
Other key highlights … Contd. Coal Supply – During the quarter 27 million tonnes of coal was received as compared to 25 million tonnes in the corresponding quarter in the previous year – Coal stock levels at power stations were comfortable – The company has also planned to import 5 million tones of
Slide 20: Contents
Contents 1 Overview 2 Performance Highlights – Year and Q1-07 3 Plans And Strategies 20
Slide 21: Plans and Strategies
Plans and Strategies The company has formulated its plans and strategies on the basis of - opportunities in the sector, company’s strengths, challenges 21
Slide 22: Basis for strategies – Sectoral Opportunities
Basis for strategies – Sectoral Opportunities High potential for growth India - A supply deficit power market Per-capita Energy Consumption in Kwh- 2002 650 631 591 8.3% India 569 600 Egypt 1287 559 7.3% 1484 546 579 China 550 7.1% Brazil 2183 523 548 507 8.8% UK 6614 11299 500 519 Australia 7.5% 7.
Slide 23: Basis of Strategies – Key competitive strengths
Basis of Strategies – Key competitive strengths Dominant market share in India Strategic importance to India High off take security Proximity to fuel sources High operating and cost efficiency Low Operational Risk Profile Strong Relationship with Government of India Strong management team with solid
Slide 24: Basis of Strategies – Key competitive strengths
Basis of Strategies – Key competitive strengths Project implementation skills Growing productivity (No. of Months) Reducing project completion time Increasing generation per employee MU 70 9 7.8 59 8 7.4 60 7.1 7 6.6 50 6.1 6.3 50 6 5.6 5.1 5.3 39 39 40 36 5 4.5 4.6 4.1 30 4 3 20 2 10 1 0 0 94-95 95
Slide 25: Basis for Strategies – Key Challenges
Basis for Strategies – Key Challenges 1. Availability of fuel at Competitive Prices 2. Regulatory Risk 3. Health of Customers 4. Competition 25
Slide 26: Snap Shot of strategies
Snap Shot of strategies Maintain sector en e leadership position Further enhance pm bl t lo a through rapid fuel security ve tain capacity expansion De us S Prudent financial Nurturing Human strategies Resource Exploit new Technology business initiatives opportunities 26
Slide 27: Strategy – Rapid capacity expansion
Strategy – Rapid capacity expansion Initial target for 2007-2012 was 11,058 MW This was upgraded to 17,000+ MW in the previous year It is now upgraded to 21,000+ MW 27
Slide 28: Strategy – Rapid capacity expansion: capacity addition
Strategy – Rapid capacity expansion Capacity addition planned / envisaged Upto 2007 2007 - 2012 Coal projects (Own) 3,210 12,680 Gas projects (Own) 4,550 Hydro Projects (incl subsidiary) 2,211 Total addition (own) 3,210 19,441 Capacities through JVs 2,500 Total capacities envisaged by 2012 Owned JVs
Slide 29: Strategy – Rapid capacity expansion: Revised plan 2007-2012
Strategy – Rapid capacity expansion Revised plan for 2007-2012 Project Total Capacity Scheduled by 2012 Project Total Capacity Scheduled by 2012 Sipat I 1980 1980 Koldam 800 800 Barh 1980 1980 Loharinag Pala 600 600 Korba III 500 500 Tapoban Vishnugad 520 520 North Karanpura 1980 1980 Lata Tapovan (
Slide 30: Expected capacity – March 2012
Expected capacity – March 2012 Hydro JV 4% Gas JV 4% 15% 7% Gas 17% Coal Coal 81% 72% Coal Gas JV Coal Gas Hydro JV Capacity Mix - existing Capacity Mix - 2012 30 (26194 MW) (51345 MW)
Slide 31: Strategy – Enhance fuel security
Strategy – Enhance fuel security Strategies for coal Strategies for gas Diversification into hydro 31
Slide 32: Strategies for Coal
Strategies for Coal Near Term Measures Import of Coal to meet shortages as a contingency measure Negotiation with coal companies for enhancing supplies Long Term measure Develop coal mines 32
Slide 33: Status of coal mine development
Status of coal mine development Eight coal blocks allotted of which two would be developed in joint venture with Coal India Limited Estimated mineable reserves of 2900 MT Estimated total production capacity of 50 MTPA by the year 2017 Initial production to begin by the year 2008 NTPC Board has appro
Slide 34: Strategies for Gas – Near Term measures
Strategies for Gas Near Term measures Purchase of gas from spot market has commenced from the month of June An understanding has been signed with Petronet LNG wherein they have been requested to explore possibility of supplying gas for its existing stations 34
Slide 35: Strategies for Gas – Long Term Measures
Strategies for Gas Long Term Measures A consortium comprising of NTPC, Geopetrol International and Canoro Resources Limited has been allotted an oil exploration block in the state of Arunachal Pradesh Exploration activities are progressing in this block NTPC would participate in the round VI of New
Slide 36: Diversification into Hydro Projects
Diversification into Hydro Projects Project Total Capacity Scheduled by 2012 Koldam 800 800 Loharinag Pala 600 600 Tapoban Vishnugad 520 520 Lata Tapovan 171 171 (NTPC Hydro) Rammam III 120 120 (NTPC Hydro) Total Hydro (incl NHL) 2211 2211 Further Hydro projects having cumulative capacity of more th
Slide 37: Strategy – Prudent Financial Strategies
Strategy – Prudent Financial Strategies Diversified sources of funds Capital structure Prudent financial profile - Debt to Net Worth of 0.45:1 Access to large credit lines from financial institutions, Banks, Multilateral and Bilateral agencies Liquidity Net cash flow of Rs.62 bln generated from oper
Slide 38: Strategy – Exploit New Business Opportunities
Strategy – Exploit New Business Opportunities Forward and Coal mining blocks already allotted Backward integration Oil exploration block allotted across energy Participation in LNG chain being explored chain Diversifying Work already started on hydro projects fuel mix by setting up More hydro projec
Slide 39: Strategy – Exploit New Business Opportunities
Strategy – Exploit New Business Opportunities Diversifying The subsidiary company set up for doing distribution Entry into business is scouting for distribution business electricity distribution The company provides consultancy services in engineering, project management, construction management, op
Slide 40: Strategy – Technology Initiatives
Strategy – Technology Initiatives Introduction of steam generators (boilers) of the size of 800 MW Integrated Gasification Combined Cycle (IGCC) Technology Launch of Energy Technology Center -A new initiative for development of technologies with focus on fundamental R&D The company sets aside upto 0
Slide 41: Strategy – Nurturing Human Resources
Strategy – Nurturing Human Resources 24,044 highly trained employees of which Improving Productivity 21,870 are engaged in NTPC owned project Senior executives possess extensive experience of the industry MU Generation per Employee 9.0 7.81 Executive Turnover Rate 0.41% 8.0 7.0 Planned interventions
Slide 42: Strategy – Sustainable Development
Strategy – Sustainable Development Corporate Social Responsibility As a responsible corporate citizen NTPC has taken up number of CSR initiatives NTPC Foundation formed to address Social issues at national level . NTPC has framed Corporate Social Responsibility Guidelines committing up to 0.5% of ne
Slide 43: Strategy – Sustainable Development… Contd
Strategy – Sustainable Development…Contd Environment Management All stations of NTPC are ISO 14001 certified Various groups to care of environmental issues The Environment Management Group Ash Utilisation Division Afforestation Group Centre for Power Efficiency & Environment Protection Group on Clea
Slide 44: Strategy – Sustainable Development… Contd
Strategy – Sustainable Development…Contd Partnering government in various initiatives Consultant role to modernize and improvise several plants across the country Disseminate technologies to other players in the sector Consultant role “Partnership in Excellence” Programme for improvement of PLF of 1
Slide 45: What others say
What others say NTPC is a great success story of our times. It is imbued with the spirit of “can do it”. My best wishes for the future growth of this magnificent national enterprise” - Dr. Manmohan Singh, Hon’ble Prime Minister Flagship company of our ministry, NTPC limited, has become a leader in t
Slide 46: Power Producer of International Repute
Power Producer of International Repute The largest Indian power utility, NTPC has a vision to be one of the world’s largest and best power utilities, powering India’s growth DISCLAIMER The information contained in this document relating to projections projections and estimates are forward looking st