Tata Power Company Limited · NSE:TATAPOWER
Tata Power — The Tata Power Company — Investor Presentation (October 2016)
27 slides from Tata Power's investor presentation, October 2016
Slide 1: The Tata Power Company Ltd. - October 2016
Presentation Title ( Arial, The Tata Power Company Ltd. Font size 28 ) Date, Venue, etc ..( Arial, FontOctober size 18 ) 2016 …Message Box ( Arial, Font size 18 Bold)
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of and should not be construed as a prospectus, offering circular or offering memorandum or an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any
Slide 3: Tata Group
Tata Group Promoter • Tata Sons is the principal Listed Companies Mkt Cap ($ bn)2 Shareholding (%)1 shareholder of the Tata Group Tata Consultancy Services 75.67 73.4 Tata Motors • 66% of Tata Sons owned by 23.88 33.0 Charitable Trusts Tata Steel 5.51 31.4 Titan 5.36 53.1 • Approx. 6,40,000 employee
Slide 4: Tata Power Company – Truly Diversified
Tata Power Company – Truly Diversified… • TTML(1) 7% • Trombay • Hydro • TTSL(1) 8% • Jojobera • Panatone 40% • Haldia Investments • Tata Comm(1) 17% • CGPL (Mundra UMPP) 100% • Maithon 74% • IEL 74% Generation • Dagachhu 26% • Georgia Hydro 40% • Wind Firm Renewable • TPREL 100% • WREPL 100% • TPSS
Slide 5: Well Calibrated Growth Strategy
Well Calibrated Growth Strategy… (In MW) Notes: (1) Figures have been rounded off …Message Box 4 ( Arial, Font size 18 Bold)
Slide 6: Pan-Indian portfolio with global presence
Pan-Indian portfolio with global presence…. India & neighboring countries International presence Operational: Thermal 7810 MW Hydro 573 MW SOUTH AFRICA GEORGIA Wind 1032 MW Solar 942 MW • 229 MW Wind Power Development of three hydro Projects (Operational) Punjab Dugar Hydro Transmission projects in
Slide 7: High Quality Risk Management in a tough Market
…High Quality Risk Management in a tough Market Capacity Break-up Break-up of Tariff Models Whr/FG Merchant Solar 3% 2% 9% Wind 10% Hydro Competitvely Bid 7% 42% Regulated / Feed-in / Negotiated PPAs 56% Thermal 71% Non-Fossil fuel capacity nearly 30% Almost entire capacity on Long-term PPAs with ma
Slide 8: Presence across the Value Chain
… with presence across the Value Chain Transmission – Mumbai Powerlinks Transmissions Limited Tata Power is amongst the 3 transmission licensees JV between Tata Power (51%) and Power Grid Corporation of TRANSMISSION that bring power into Mumbai India Ltd. (49%) 1,100 CKm of 220KV / 110KV lines
Slide 9: Other Key Businesses
Other Key Businesses 100% subsidiary, holds a trading license for a period of 25 years starting from 2004 Tata Power Trading Holds a Category I trading license, which permits it to trade any amount of power Trust Energy Resources Pte Ltd incorporated in Singapore for owning bulk carriers to me
Slide 10: Existing Portfolio – Stabilized Operations
Existing Portfolio – Stabilized Operations …Message Box ( Arial, Font size 18 Bold)
Slide 11: Mumbai and Delhi regulated businesses
Mumbai and Delhi regulated businesses Mumbai business TPDDL 3,632 3,389 Steady capex towards distribution 3,055 REGULATED EQUITY (RS CR) infrastructure strengthening and network expansion resulting in robust regulated equity growth. 1,211 1,142 1,069 FY14 FY15 FY16 Regulatory assets at Delhi and
Slide 12: CGPL – Efficient Operations & Lower Fuel Costs
CGPL – Efficient Operations & Lower Fuel Costs leading to improved performance Declining coal costs and improving Particulars FY14 FY15 FY16 operational performance have helped PLF (%) 68.3% 75.9% 73.1% improve Mundra’s profitability. APTEL, in its judgment on April 7th, Revenue (Rs Cr) 5,650 5,
Slide 13: Maithon Power – Stabilized Performance
Maithon Power – Stabilized Performance Particulars FY14 FY15 FY16 Entire capacity fully tied-up through PLF (%) 69% 73% 78% Long Term PPAs Steady improvement in Plant Load Revenue (Rs Cr) 2,293 2,283 2,312 Factor (PLF) Plant operating with healthy operating EBITDA (Rs Cr) 755 841 793 margin of
Slide 14: Coal business – Efficiency improvements mitigate margin pressures
Coal business – Efficiency improvements mitigate margin pressures FY14 FY15 FY16 Coal mined (mnte) 83.0 82.8 81.0 Coal sold (mnte) 85.0 82.2 80.8 Net revenue after royalty (US$/te) 52.6 44.9 39.3 COGS (US$/te) 38.8 33.3 29.6 Net margin (US$/te) 13.9 11.6 9.7 Coal sold Net margin Weakness in global
Slide 15: Timely completion of Overseas Projects
Timely completion of Overseas Projects Georgia South-Africa Zambia (under construction) Capacity (MW) 229 [Wind] 120 [Hydro] 185 [Hydro] Exxaro (50%) – A SA based JV Partner(s) ZESCO (50%) Clean Energy (40%); IFC 20% mining group Tata Power’s stake 50% 50% 40% ~ZAR6,800 mn for entire 229 Project Cos
Slide 16: Growth Opportunities and Strategies
Growth Opportunities and Strategies …Message Box ( Arial, Font size 18 Bold)
Slide 17: Indian Power Sector - Growth drivers
Indian Power Sector - Growth drivers GDP of India projected to grow at nearly 8% GDP growth to drive Strong correlation between GDP growth and demand for power demand for power India has one of the lowest per capita consumption of power (1/3 rd of world average) Government focused Government
Slide 18: Tata Power – Strategic Focus
Tata Power – Strategic Focus Sustainable Profitable Growth …Message Box 17 ( Arial, Font size 18 Bold)
Slide 19: Strategies for Growth
Strategies for Growth Greenfield projects in India and Overseas [Selectively] Expansion of existing sites Generation Acquisition of Operating / Nearly Operating Power Projects in conventional and renewable space PPP model successful in the past Some states pursuing Franchise Models Distrib
Slide 20: Renewable Energy - Key growth area
Renewable Energy - Key growth area High growth potential – Strong push by Government ie 100GW Solar and 60GW Wind Ease of project execution Attractive Sector No dependence on fuel sources Long Term PPAs with fixed tariffs Falling Tariff Improve operational performance of existing assets
Slide 21: Tata / ICICI Platform
Tata / ICICI Platform Creation of ‘Platform’entity by Tata Power subisdiary along with ICICI Ventures as co-sponsors Commitments from other key investors such as CDPQ and SGRF Resurgent Power Commitment of up to US$ 850 million as capital by sponsors and investors Tata Power International Pt
Slide 22: Key Strategic Priorities
…..Key Strategic Priorities Opportunity in stranded Thermal Assets Big Push for Renewables Select Overseas Investments Reduction of Non-Core Investments Maintaining Balance Sheet at target levels ….Careful evaluation of Investment decisions through risk filters …Message Box 21 ( Arial, Font size 18
Slide 23: Financials
Financials …Message Box ( Arial, Font size 18 Bold)
Slide 24: Snapshot Consolidated Financials
Snapshot Consolidated Financials (in Rs. Cr) (in US$ mn) FY16 FY15 FY14 FY16 FY15 FY14 Revenue from 36,461 34,367 35,649 5,442 5,129 5,321 Operations (Net) Operating Expenditure 28,470 27,427 27,942 4,249 4,094 4,170 Operating Profit 7,991 6,940 7,707 1,193 1,036 1,150 Add: Other Income 79 417 (562)
Slide 25: Leverage ratio (Consolidated)
Leverage ratio (Consolidated) Net Debt / Equity (x) Outstanding Gross FY16 FY15 FY14 Debt (Rs. Cr) 3 2.56 2.5 2.23 2.28 2.32 2.29 2.32 2.3 Tata Power S/A 11,258 11,037 11,080 2.23 2.2 1.9 2 Tata Power Conso 40,121 40,842 40,173 1.5 Outstanding Net Debt 1 FY16 FY15 FY14 (Rs. Cr) 0.5 Tata Power S/A 11
Slide 26: Key impact of IND-AS implementation
Key impact of IND-AS implementation Change in treatment of generation • Jojobera and IEL power plants to be assets treated as financial leases Effect of forex change and MTM impact of hedge instruments to flow through • Increased volatility in quarterly profits P&L Interest free loans and corporate
Slide 27: Investor Relations contact
Website: www.tatapower.com Email ID: investorrelations@tatapower.com Investor Relations Kasturi S Tel : +91 22 6717 1345 …Message Box 26 ( Arial, Font size 18 Bold)
The Tata Power Company — Investor Presentation (October 2016) on 6ix