Power Grid Corporation Of India Limited · NSE:POWERGRID
Power Grid Corporation Of India — Non-Deal Roadshow (November 2013)
31 slides from Power Grid Corporation Of India's roadshow presentation, November 2013
Slide 1: Corporate Presentation
‘ONE NATION, ONE GRID’ Corporate Presentation November 2013 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE. 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 presentation has been prepared by Pow
Slide 3: Presentation Outline
Presentation Outline Table of Contents 1 4 2 3 POWERGRID Overview Other Information Risks and Key Company Highlights Considerations ‘ONE NATION, ONE GRID’ 2
Slide 4: 1. POWERGRID Overview
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Slide 5: POWERGRID: India's Principal Power Transmission Company
POWERGRID: India's Principal Power Transmission Company VISION World Class, Integrated, Global Transmission Company With Dominant Leadership in Emerging Power Markets Ensuring Reliability, Safety and Economy India's Power Transmission leader owning more than Transmission Transformation Sub-Station
Slide 6: POWERGRID: Business Overview
POWERGRID: Business Overview A GoI Navratna Enterprise Transmission Grid Management Consultancy Telecom (FY13 Revenue: INR 12,211 cr1) (FY13 Revenue: INR 220 cr 1, 2) (FY13 Revenue: INR 315 cr 1) (FY13 Revenue: INR 231 cr1) Owns and operates ~90% of Real-time grid operation Leverages in house
Slide 7: POWERGRID: Major Corporate Milestones
POWERGRID: Major Corporate Milestones Physical FY92 – 93 FY12 – 13 Financial1 FY92 – 93 FY12 – 13 164,763 (INR cr) 82,316 100,200 167 13,727 22,228 4,313 3,521 12,201 634 39 237 Transmission Line (ckm) Sub-stations (Nos.) Transformation Capacity Turnover Net Profit Gross Fixed Assets (MVA) (excludin
Slide 8: 2. Key Company Highlights
2. Key Company Highlights
Slide 9: Key Company Highlights
Key Company Highlights 1 Compelling Industry Dynamics 2 Leadership Position in India’s Transmission Sector 3 Effective Project Implementation and Focused Growth Plans 4 High Operational Efficiency 5 Stable Business Model with Comparatively Low Risk 6 Diversification and New Business Initiatives 7 St
Slide 10: Compelling Industry Dynamics
1 Compelling Industry Dynamics A Low Per Capita Power Consumption C …And India’s continued D …Driving Capacity Addition Across Power Sector to and Electrification1… Power Deficits3… Meet Demands (kWh/Year for 2011) (‘000 MW) (Capacity additions and expenditure) % Peak Deficit 3,312 XIIth Plan Estima
Slide 11: Compelling Industry Dynamics (Cont'd)
1 Compelling Industry Dynamics (Cont’d) Strengthening National Grid through inter-regional high capacity transmission corridors Large pit-head stations under central as well as private sector Hydro projects in NER, Himachal Pradesh, Uttarakhand and J&K Large import coal based power projects al
Slide 12: Leadership Position in India's Transmission Sector
2 Leadership Position in India’s Transmission Sector Sole Central Transmission Utility and National Grid Manager India's Transmission Backbone Share of Inter-State Share of XIIth Plan Capex Transmission System (Transmission) Others ~10% Private 14% Center 55% State 31% PGCIL ~90% Total: INR 180,000
Slide 13: Effective Project Implementation
3 Effective Project Implementation… POWERGRID has Consistently Beaten Capex Targets1… Accelerated Capacity Addition (INR ‘000 cr) 2,644 107.1% 101.1% 100.9% 100.6% 100.2% 49.1% 22.2 20.0 20.0 17.7 17.8 11.9 12.0 7.2x 10.5 10.6 10.9 7.6 8.2 2.0x FY09 FY10 FY11 FY12 FY13 FY14 H1FY14 658 327 369 Planne
Slide 14: And Focused Growth Plans
3 … And Focused Growth Plans Elements of Following Major Projects to be Commissioned Capitalization / Capex1 in FY14-15 (INR ‘000 cr) 85.9% 73.2% 60.0% 59.5% Common Scheme for 765 KV Pooling Station and Network associated with 1 DVC & Maithon Right Bank Project 27.2% 20.0 17.8 17.2 2 Transmission Sy
Slide 15: Highly Efficient Operations
4 Highly Efficient Operations Consistently High Availability… Improving Productivity2 FY13 FY09–13 CAGR 100% 99.94% 99.90% 99.90% 99.80% Gross Fixed Assets 99.77% CAGR: (ex CWIP) / Employee 8.6 (INR cr / Employee) 15.1% 99.55% Capacity / Employee CAGR: (MVA / Employee) 17.6 16.2% FY09 FY10 FY11 FY12
Slide 16: Stable Business Model With Comparatively Low Risk
5 Stable Business Model With Comparatively Low Risk 1 Changing Regulatory Framework Framework on Cost Plus Basis New Framework Post January 2011 Following projects will continue under the cost plus model Regulated returns Revenue model on assets built and annual fixed charges basis – All existin
Slide 17: Increasing Diversification: Consultancy and Telecom Verticals
6 Increasing Diversification: Consultancy and Telecom Verticals Consultancy Services Others (HR, Operation Tr. Line Communication System Project Design and Rural Contracts, and and S/S Infrastructure Studies Management Drawings Electrification DPR, Smart Maintenance incl. GIS (ULDC, OPGW) Grid) Dome
Slide 18: New Business Initiatives
6 New Business Initiatives SMART Grid (SG) integrates latest tech in IT, Intends to set up Energy Efficiency Intend to start manufacturing towers, conductors and communication, automation with the electrical grid Service Company (ESCO) to equipment through JVs Developing SG pilot through ope
Slide 19: Strong Financial Track Record
7 Strong Financial Track Record Gross Fixed Assets (Excluding CWIP)1 Total Revenue1,2 (INR cr) (INR cr) 13,727 11,074 82,316 87,107 9,273 7,738 64,519 51,462 FY11 FY12 FY13 H1FY14 FY11 FY12 FY13 H1 FY14 EBITDA1,2,3 and EBITDA Margin1,2,3 PAT1 and Dividend4 (INR cr / %) (INR cr) 85.8% 11,777 85.6% 9,
Slide 20: Strong Financial Track Record (Cont'd)
7 Strong Financial Track Record (Cont’d) RoE1 Net Worth1,3 and BVPS1 (INR cr / INR) 16.4% 61.5 16.0%2 57.0 50.9 14.0% 46.2 12.5% 28,476 26,377 23,583 21,402 FY11 FY12 FY13 H1FY14 FY11 FY12 FY13 H1FY14 Networth Book Value per Share Financial Leverage1,4 EPS1 (INR cr ) (INR) 9.3 2.73 7.1 2.55 1.88 2.2
Slide 21: Seasoned Management with Extensive Industry Experience
8 Seasoned Management with Extensive Industry Experience The management team of POWERGRID is highly experienced and qualified to execute the Company’s strategic plan Senior Management Government Nominees and Independent Directors 1 R.N. Nayak, Chairman and Managing Director 6 Rita Acharya, Govt. Nom
Slide 22: Risks and Considerations
Risks and Considerations Limited exposure to business cycles - GDP ‘slowdown-proof’ business model given regulated return Macroeconomic Planned capex of ~INR 109,650 cr in the XIIth Plan; 28.2% incurred during April ’12 – September ‘13 Risk – Historically exceeded capex targets No impact of fu
Slide 23: POWERGRID: Company Highlights
POWERGRID: Company Highlights Attractive Industry Dynamics Market Leader Stable Business Model Government of India Support Strong Financial Position Emerging Business Verticals: Telecom and Consultancy Management Focused on Growth with Extensive Project Execution Experience ‘ONE NATION
Slide 24: POWERGRID: Targets and Achievements
POWERGRID: Targets and Achievements Delivered Comprehensively on Targets In September 2007 In November 2010 Target Achievement Target Achievement Invest INR 55,000 cr Exceeded planned Capex of INR 29,559 Exceeded Over Next Five capex targets every year cr1 in FY11 & FY12 planned capex Years Continue
Slide 25: 3. Other Information
3. Other Information
Slide 26: Sustainability Framework
Sustainability Framework Environmental and Social Policy & Procedures (ESPP) Certifications Environment and Social Policy Statement “POWERGRID is committed to the goal of sustainable development and conservation of nature and natural resources. While continually improving its management systems, a
Slide 27: Sustainability Initiatives
Sustainability Initiatives 1. Land Acquisition 3. Reduction in Forest Land Usage Aim to locate sub-stations on government/waste land as far as possible Private land selected keeping in mind social impact on account of land loss The forest land usage as a percentage of total land utilization in
Slide 28: Indian Power Sector
Indian Power Sector Generation Transmission Distribution Consumption SEBs, EDs, Discoms, SEBs/SPUs SEBs/SPUs Pvt. Licenses Agriculture, Domestic, Energy Available CPUs POWERGRID Commercial, and Sold Industries, and Others Transformation, IPPs & Private Transmission and Private Utilities Distribution
Slide 29: Financial Summary
Financial Summary For Six Months For the Year Ended March 31 Ended 30 September INR cr FY11 FY12 FY13 HY14 Income Statement Total Revenue1 9,273 11,074 13,727 7,738 EBITDA1,2 7,772 9,326 11,777 6,627 EBITDA Margin 83.8% 84.2% 85.8% 85.6% EBIT3 5,499 6,688 8,349 4,696 Profit after Tax 2,672 3,303 4,3
Slide 30: Corporate Overview (Cont'd)
Corporate Overview (Cont’d) Government Institutions Non-institutions of India 69.42% 23.69% 6.89% Joint Ventures Subsidiaries Investment 4.1% 50% 50% Kalinga Bidyut Prasaran Bihar Grid Company Ltd. POSOCO 100% Nigam Pvt. Ltd. PTC India Ltd. (Grid Management) Teesta Valley Power 26% 49% Powerlinks Tr
Slide 31: List of Abbreviations
List of Abbreviations AG Accountant General CBT Central Board of Trustees CTC Central Transmission Utility EPFO Employees Provident Fund Organization ESCO Energy Efficiency Service Company ESPP Environment and Social Policy & Procedure FERV Foreign Exchange Rate Variation FPO Follow-on Public Offer
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