Power Grid Corporation Of India Limited · NSE:POWERGRID
Power Grid Corporation Of India — Non-Deal Roadshow (November 2018)
34 slides from Power Grid Corporation Of India's roadshow presentation, November 2018
Slide 1: Investor Presentation
Investor Presentation November 2018 1
Slide 2: Disclaimer
Disclaimer 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 and the information contained therein do not constitute an offer of the securities for sale in the United States and are
Slide 3: POWERGRID Today
POWERGRID Today Central Transmission Utility of India As per World Bank - 3rd Largest Transmission Utility in the World Gross Block - 3rd Largest Central Public Sector Enterprise (CPSE) Profit - 6th Largest CPSE Turnover- Largest Service Sector CPSE (excl. trading companies) Fastest Growing Electric
Slide 4: POWERGRID Overview
POWERGRID Overview 4
Slide 5: Company Overview
Company Overview “World Class, Integrated, Global Transmission Company With Dominant Leadership in Emerging Power Markets Vision Ensuring Reliability, Safety & Economy” Sub-Stations Transmission Lines 237 Nos. • Owned 56.34% by Government of India1 ~149,300 ckm Transformation Capacity Central Transm
Slide 6: Business Overview
Business Overview Associated Transmission System for UMPPs, CGS, IPPs Transmission Grid strengthening schemes EHV/ HV Networks Inter-State, inter-regional and cross-border links (c. 96% of FY 2018 revenue from High Capacity Transmission corridors for IPP Projects operations) Green Energy C
Slide 7: Major Corporate Milestones
Major Corporate Milestones POWERGRID • Issued maiden Foreign Notified as Incorporated Currency Bond of US$ 500 mn • Mini Ratna (Category I) company • • Country’s mission of ‘One • Central Transmission Utility Notified as a Navratna Company Nation’ – ‘One Grid’ – ‘One (CTU) by GoI Frequency’ successf
Slide 8: Platts' 50 Fastest Growing Global Energy Companies Rankings
Only Company to Consistently Feature in Platts’ Top 5 Global Energy Rankings Since 2014 Platts’ 50 Fastest Growing Global Energy Companies Rankings (as part of Top 250 Global Energy Company Rankings) 2014 2015 2016 2017 2018 POWERGRID – Fastest Growing Electric Utility in Asia for 5 consecutive year
Slide 9: Sustainability & Corporate Social Responsibility
Sustainability & Corporate Social Responsibility Adoption of Higher Voltages & New Technologies for Environment & Social Policy & Procedures (ESPP) Sustainable Growth Reduction in Land Requirement Committed to the goal of sustainable development and conservation of nature & natural resources. • Cost
Slide 10: International Credit Ratings
International Credit Ratings Rated Baa2 by Moody's “….Power Grid’s Baseline Credit Assessment (BCA) of baa2 is supported by (1) the strong and established regulatory framework in India, (2) the company's solid financial profile, (3) its cost-plus tariff structure, (4) its payment security mechanism,
Slide 11: Credit Highlights
Credit Highlights 11
Slide 12: Credit Highlights
Credit Highlights 1 Strategic Importance to National Economy and Government of India (‘GoI’) 2 Stable, Consistent and Well Defined Regulatory Framework 3 Dominant Market Position in Transmission Sector in India 4 Successful Track Record in Executing and Operating Projects 5 Other Business Verticals
Slide 13: Strategic Importance to National Economy and Government of India
1 Strategic Importance to National Economy and Government of India (“GoI”) POWERGRID, being a ‘Central Transmission Utility’ of the GoI, plays a critical role in inter-State power transmission and is one of the ‘Navratna’ companies for the GoI, now eligible for ‘Maharatna’ status GoI shareholding
Slide 14: Stable, Consistent and Well Defined Regulatory Framework
2 Stable, Consistent and Well Defined Regulatory Framework • POWERGRID operates in a stable & consistent regulatory framework governed by Central Electricity Regulatory Commission’s (‘CERC’) regulations, enabling predictable cash flows with very low business risk • 96% of POWERGRID’s revenue is regu
Slide 15: Dominant Market Position in Transmission Sector in India
3 Dominant Market Position in Transmission Sector in India Market Leader in inter-State power transmission in India… POWERGRID owns and operates ~85% of India’s inter-State and inter-regional electric power transmission network ― ~149,300 circuit km of transmission network (>90% of the total EHV >=
Slide 16: Successful Track Record in Executing and Operating Projects
4 Successful Track Record in Executing and Operating Projects Strong Execution leading to consistent growth in Asset Base State-of-the-art Techniques ensuring world class Availability 99.92% 99.78% 99.72% 99.79% 99.81% Capex (US$ mn) Gross Fixed Assets (US$ mn) 27,228 98% 23,020 5,000 25,000 Thresho
Slide 17: Other Business Verticals Providing Diversification
5 Other Business Verticals Providing Diversification Consultancy and Telecom also provide revenue diversification One of the leading utilities in the country with an optic fibre network of over 47,700 kms using optical ground wire (OPGW) on power transmission lines and about 680 Points of Presence
Slide 18: Experienced Senior Management and Competent Workforce
6 Experienced Senior Management and Competent Workforce Extensive Domain Experience & Expertise Experienced Senior Management Has played a leadership role for development of sector Strong Blend of Experience & Motivation Skilled & Motivated Employees High Level of Commitment of Employees Low Levels
Slide 19: Renewable Energy Focus to Drive Strong Growth in Power & Transmission Sector
7 Renewable Energy (RE) Focus to Drive Strong Growth in Power & Transmission Sector in India In line with the economic growth & extensive policy support, the generation sector in India is expected to grow rapidly… RE policy focus to drive incremental capacity addition to fulfill increasing demand
Slide 20: New Business Initiatives
8 New Business Initiatives Driving Forces • Continued Thrust on Seamless & Flexible Grid Interconnection • Thrust on RE for Energy Security & Intra-State Wire Business Smart Cities (An upcoming Climate Change Transmission opportunity) • Development of Smart Cities • Railways & DFC works • Improving
Slide 21: Robust Financial Profile (1/2)
9 Robust Financial Profile (1/2) POWERGRID’s revenue from operations has grown at a CAGR of 18% during FY14-FY18, and the company has maintained an EBITDA margin in excess of 88% during this period Revenue from Operations Total Assets1 (USD mn) (US$ mn) 4,574 32,733 35,243 3,953 27,429 29,930 3,177
Slide 22: Robust Financial Profile (2/2) Credit Metrics Summary
9 Robust Financial Profile (2/2) Credit Metrics Summary Operating Cashflows & Total Cash Net Debt / Asset Base (US$ mn) 3,267 3,364 60.4% 59.9% 2,368 2,313 2,325 58.7% 58.5% 58.0% 1,415 54.5% 679 317 496 352 237 233 FY14 FY15 FY16 FY17 FY18 HY19 Operating Cash Flow Total Cash FY14 FY15 FY16 FY17 FY1
Slide 23: Debt Structure and Liquidity Position
10 Debt Structure and Liquidity position Debt maturity Profile (USD mn) Sources of Debt (%) as on 31-Mar-18 Borrowing Currency (%), 31-Mar-18 30-Sep-18 Balance FY19 Foreign EUR SEK JPY 3% FY20 Currency Bonds 3% 2% 0.1% 8% 2.5% Domestic Bank US$ Loans 22% 13.4% FY21-FY23 Beyond FY23 26% 63% Foreign D
Slide 24: Financial Overview
Financial Overview 24
Slide 25: Financial Summary - Standalone Financials
Financial Summary - Standalone Financials For six months ended For the year ended 31 March 30 September (US$ mn) FY14 FY15 FY16 FY17 FY18 HY19 Income Statement Net Sales 2,342 2,641 3,177 3,953 4,574 2,523 EBITDA 2,064 2,361 2,899 3,619 4,175 2,246 EBITDA margin 88% 89% 91% 92% 91% 89% EBIT 1,450 1,
Slide 26: Appendices
Appendices 26
Slide 27: Key Financials
Key Financials Turnover Profitability (US$ mn) (US$ mn) 4,730 5,000 88% 89% 91% 92% 91% 89% 100% 4,086 4,500 90% 4,000 80% 3,266 3,500 70% 2,734 2,632 2,417 3,000 60% 2,500 50% 2,000 4,175 40% 3,619 1,500 2,899 30% 1,000 2,064 2,361 2,246 20% 500 10% - 0% FY14 FY15 FY16 FY17 FY18 HY19 FY14 FY15 FY16
Slide 28: Structure of Indian Electricity Sector
Structure of Indian Electricity Sector Policy Making Central Government CEA State Governments Regulators CERC SERCs JERCs System Operators NLDC RLDCs SLDCs Generation Central Generating Stations State Generating Stations Private Sector Transmission CTU (Issuer) STUs Private Sector Distribution State
Slide 29: Corporate Structure
Corporate Structure Government Institutions Non-Institutions of India 56.34% 39.01% 4.65% Joint Ventures Other Investments Subsidiaries 100% 1. Powerlinks 7. National High Power Transmission Ltd. Test Laboratory(20%) (49%) 8. Bihar Grid Company 1. Energy Efficiency Services 1. POWERGRID Vizag TL 2.
Slide 30: POWERGRID Management Team
POWERGRID Management Team The management team of POWERGRID is highly experienced and qualified to execute the Company’s strategic plan Senior Management Shri I.S Jha Ravi P. Singh Shri K. Sreekant Ms. Seema Gupta Shri R K Chauhan Chairman & Managing Director Director- Personnel Director- Finance Dir
Slide 31: Tariff Mechanism
Tariff Mechanism CERC Tariff Norms for 2014-19 Sample Calculation of Tariff Salient Features and Components of Tariff Capital Cost of the Project : INR 100 Crs – Loan 70 Cost plus tariff – Equity 30 Debt-Equity ratio of 70:30 for investments – Rate of Interest (IOL say 9.5% p.a. – Repayment of
Slide 32: Evolution of Synchronous National Grid
Evolution of Synchronous National Grid 32
Slide 33: Disclaimer
Disclaimer 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 document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any secur
Slide 34: Thank You
Thank You 34
Power Grid Corporation of India — Non-Deal Roadshow (November 2018) on 6ix