Coal India Ltd. · NSE:COALINDIA
Coal India — Investor Presentation (September 2020)
18 slides from Coal India's investor presentation, Sep 21, 2020
Slide 1: Investor meet cover letter to exchanges
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Slide 2: Pramod Agrawal, Chairman & Managing Director
Pramod Agrawal Chairman & Managing Director
Slide 3: Coal India – A successful past, a brighter future
Coal India – A successful past, a brighter future 1975 2020 • Nationalized coal mines under Coal • Largest pure play coal producer in the Mines Authority Ltd. re-organised as world Coal India Limited. • ‘Maharatna’ • Coal Production ~ 79 Mt • FY20 coal production 602 Mt • FY20 coal production at 602
Slide 4: Key Company Highlights
Key Company Highlights Organizational Commitment to World’s Largest Pure Play Coal Producer Sustainable Development YTDFY21 till August 2020 production of High focus on social, environmental and 196 million tons across 364 working health & safety initiatives mines, with ongoing projects for furt
Slide 5: Moving on to the next decade – Why coal continues to be key in India's growth story
Moving on to the next decade – Why coal continues to be key in India’s growth story Considering two scenarios – power demand growth at 6%/8% from FY22 onwards – results in estimated all-India total coal demand reaching 1,250 mt/1,500 mt by FY30. Even after considering growth in RE capacity from 123G
Slide 6: The next decade – Why coal continues to be key in India's growth story
The next decade – Why coal continues to be key in India’s growth story As it can be seen from a typical load curve in India, peak demand is post 5pm which supports our argument that coal based power is integral to cater to base load till affordable storage comes in a major scale. It can be seen that
Slide 7: Positive demand outlook for CIL
Positive demand outlook for CIL • CIL targets to reach 1 Bt production by FY 23-24. If reached, this will mean a CAGR of 13.52% from FY20 level of 602 mt. • CIL also targets to substitute 100 mt/150 mt imported thermal coal by FY21/FY22. India imported ~250 mt coal (including coking coal) in FY20. C
Slide 8: World's Largest Pure Play Coal Producer Preparing to build 1 bn tonne capacity
World’s Largest Pure Play Coal Producer Preparing to build 1 bn tonne capacity Largest Pure Play Coal Producer Globally, Slated for Further Growth * Flat volumes in FY20 due to Covid disruptions Ongoing projects Future projects 110 projects with peak capacity of 750 mt are 18 mining Projects have un
Slide 9: Railway lines for coal evacuation Key to capacity building
Railway lines for coal evacuation Key to capacity building Adopted an approach for eliminating road transportation of coal from mines having capacity of 4 Mty and above. These entailed capacity creations of mechanized conveyor system and computerized loading system (SILOs). Approved procurement of 4
Slide 10: Cost controls
Cost Cost controls control measures • Natural attrition of manpower: 5% reduction in manpower annually for the next 5-10 years (FY20 base of 272445 employees) • First mile connectivity & infrastructure creation to reduce costs • Closure of unviable mines: 158 underground mines employ 45% of the work
Slide 11: Infrastructure Building – First mile connectivity and other coal evacuation infra improvement projects
Infrastructure Building – First mile connectivity and other coal evacuation infra improvement projects First Mile Connectivity Projects Coal evacuation infra projects CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile 12 railway lines – estimat
Slide 12: Cost Control & Infrastructure Building – Mine closure
Cost Control & Infrastructure Building – Mine closure 2014 2015 2016 2017 2018 2019 2020 Coal volumes Opencast (mn tons) 426 459 505 523 537 576 572 Underground (mn tons) 36 35 34 31 31 30 30 Employees (#) Opencast ('000s) 147 147 147 144 155 157 155 Underground ('000s) 200 186 176 166 144 128 117 M
Slide 13: Pricing freedom – Quality Improvement and Pricing Freedom maintaining Competitiveness
Pricing freedom – Quality Improvement and Pricing Freedom maintaining Competitiveness • Major infrastructure facilities at loading point for sample preparation has been put in place by coal companies. • Supply under all FSAs and different e-auction schemes have been covered under Third Party samplin
Slide 14: ESG
ESG • Coal evacuation and FMC projects will • Lowered fatalities substantially to 19 in • With an objective of becoming an help reduce air pollution and YTDFY21 vs from 29 YoY. efficient and modern dynamic environmental impact. • Over Rs3000cr cumulative spend on CSR organization, CIL has decided to
Slide 15: Moving towards 'Clean Coal'
Moving towards ‘Clean Coal’ Coal Coal Bed Washeries gasification Methane 4 surface coal Two projects tendered gasification projects CIL operates 12 coal through BOO mode at identified at Shilpanjal washeries, (10 coking coal Raniganj and Jharia with and 2 non-coking coal) with Pariyojana (WB), Proje
Slide 16: Dividend and capital allocation
Dividend and capital allocation • In the past div payout ratio was fluctuating • Transparent payout policy is being put n place • Co intends to pay free cash flow post capex as dividends annually • Co intends to incur capex if demand growth sustains • Annual capex is targeted at ~Rs10000crs • Co int
Slide 17: What should Investors expect?
What should Investors expect? • Sustained volume growth • Improving cost structures • Good disclosures and compliance as per global standards • Transparent payout policy – Payout of the free cash flow after capex annually. • Clean coal • Receivables position improving; steady improvement expected in
Slide 18: Thank You
Thank You