Cesc Ltd · NSE:CESC
Cesc — Investor Presentation (September 2014)
39 slides from Cesc's investor presentation, September 2014
Slide 1: CESC Limited - Powering India since 1899
CESC Limited Powering India since 1899 September 2014 1
Slide 2: “The materials contained herein (the “Materials”) are for use at this presentation only and
“The materials contained herein (the “Materials”) are for use at this presentation only and not for further distribution by you or any other person. Neither the Materials, nor anything contained herein, shall form the basis of, or be relied on in connection with, any contract to purchase or subscrib
Slide 3: Group Financial Performance (FY 2014)
= ~ RP- Sanjiv Goenka , Aas Group Growing Legacies GROUP FINANCIAL PERFORMANCE (FY 2014) = (in Crores) Gross Assets 28,114 Gross Revenue 14,719 UNLOCKING EBITDA 2,232 VALUE. PBDT 1,523 PBT O17,
Slide 4: Business Sectors, 15+ companies, 55,000+ employees
6 Business Sectors, 15+ companies, 55,000+ employees, 3,00,000 + shareholders CESC Integrated Private Power Utility Phillips Carbon Black Carbon black manufacturer Spencer`s Retail Food based retailer Firstsource Solutions Pure play BPO player Saregama India Large collection of Indian Music Group Re
Slide 5: Financials of RP-Sanjiv Goenka Group companies
Financials of RP- Sanjiv Goenka Group companies (Rs. bn ) Gross Market cap Promoter EBIDTA Net Profit Revenues as on Holding as (FY`14) (FY`14) (FY`14) 15.9.14 on 30.6.14 CESC 55.10 15.30 6.52 101.54 52% Firstsource Solutions 31.10 3.62 1.93 27.65 57% Phillips Carbon Black 22.80 1.55 (0.87) 4.67 53%
Slide 6: Indian Power Sector
Indian Power Sector Annual Per Capita Consumption Growth in Power Demand 13361 10063 6460 5741 2942 2384 884 USA Australia Russia UK China Brazil India Source : CEA July 13 Source : ICRA July’2014 Trends in Energy Deficit Trends in Peak Deficit Source : ICRA July’2014 Source : ICRA July’2014 6
Slide 7: Indian Power Sector
Indian Power Sector Tariff hike undertaken across States (%) Source : ICRA July 2014 Trends in Generation Capacity Addition T&D losses (%) declining trend 33.98% 32.54% 32.53% 31.25% 30.42% 28.65% 27.20% 25.04% 25.39% 23.07% 23.65% FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 So
Slide 8: Indian Power Sector
Indian Power Sector Source : Ambit Capital Pvt Ltd, July 2014 8
Slide 9: Overview of CESC
Overview of CESC Private sector power utility company in India Power Generation Map Distributing power to city of Kolkata & adjoining areas Integrated business model - Coal Mining, Generation, Distribution Jaisalmer 24 MW Wind 80%+ energy requirement from own generation, meeting peak demand
Slide 10: CESC Existing Businesses
CESC Existing Businesses Kolkata Distribution Independent Power Project Business Renewables Integrated business 600 MW thermal power 9 MW Solar Power Plant model project in Chandrapur, in Gujarat. -1225 MW generation Maharashtra 24 MW wind power - 567 sq km area (Project cost Rs. 38 billion) plant,
Slide 11: Advantage CESC
Advantage CESC Dedicated Skilled Strong Balance workforce / Sheet domain expert with very low Customer attrition rate service 117 years of Experience Integrated Business Model 11
Slide 12: Our Pledge and Commitments, Recent Recognitions
Our Pledge and Commitments We at CESC are overwhelmed with the recent all India recognitions. We promise to consumers : Continuously raise efforts in generation, distribution and service Top Infrastructure Company in Power Distribution Day and night, in fair and foul weather, we BBGS ranked 1st shal
Slide 13: Enriching Consumer Experience with best in class customer service
Web Services Mobile Apps Enriching Consumer Experience with best in class customer service SMS Services Call Centre Branding Communication Enriching Consumer Experience Social Media 13
Slide 14: Accolades
Accolades Environment Award 2014 by Greentech BBGS & SGS gold and TGS silver IGCL Leadership Awards for Environment Excellence Greentech Safety Zero Waste Award by ICC Award 2013 TGS BBGS 14
Slide 15: Accolades (contd...)
Accolades (contd….) Best Performing Power Utility –Urban Top Infrastructure Company – Innovation in by Enertia Power Distribution Award 2013 Distribution- ICC by Dun & Bradstreet Best HR Practices People Management and by NIPM Development award CESC House by IUKAN Runner up at NDTV Grundfos Mission
Slide 16: CESC Standalone Financials
CESC Standalone Financials Sales (MU) Revenue (Rs. bn) 54.1 56.09 47.82 42.47 32.00 34.49 FY'09 FY'10 FY`11 FY`12 FY`13 FY`14 T&D Loss (%) PLF%(excluding peaking Station) 22.8% 18.8% * 15.5% 13.9% 11.9% 11.8% FY'01 FY'03 FY'06 FY'08 FY'13 FY'14 * 250 MW BBGS Unit 3 fully added in FY’11 16
Slide 17: CESC Standalone Financials
CESC Standalone Financials PBT (Rs. Bn) Debt / Equity Ratio 0.7 0.7 0.65 0.6 0.6 0.6 FY'09 FY'10 FY`11 FY'12 FY'13 FY`14 EPS (Rs.) Dividend History 50 52 44 39 33 35 FY'09 FY'10 FY`11 FY'12 FY'13 FY`14 17
Slide 18: Growth Opportunities
Growth Opportunities Distribution Privatization Strong reforms expected in distribution privatization to reduce AT&C losses Renewables Major thrust being given for clean energy generation Independent Power Projects Acquisition of Generation Assets & fuel security for new projects New Power Policy Go
Slide 19: 600 MW Chandrapur TPP, Maharashtra
600 MW Chandrapur TPP, Maharashtra First Independent Power Plant (IPP) of CESC Constructed in Chandrapur, near Nagpur with 2x300 MW configuration Project cost of Rs. 38 billionfunded at 75:25 debt equity ratio Coal LoA available from CIL BTG supplied by Shanghai Electric, BoP undertaken by
Slide 20: 600 MW Haldia TPP, West Bengal
600 MW Haldia TPP, West Bengal To meet the growing need of its consumers, CESC is setting up a 600 MW (2x300) TPP in Haldia, near Kolkata Fully regulated project approved by WBERC Entire 600 MW power to be supplied to CESC Project include 80 kms long 400 kV Transmission line from Haldia to C
Slide 21: Wind Power Project
Wind Power Project Plans to increase footprints in the wind business, driven by favorable tariff regime and positive long term outlook for renewable energy Commissioned 24 MW (2x12) wind power project in Jaisalmer, Rajasthan in FY`13 Long term PPA signed with Rajasthan Discoms at attractive ta
Slide 22: Real Estate – Quest
Real Estate – “Quest” Luxury Mall built on 3 acres of land in Kolkata, Mall inaugurated on 30th September 2013 4,15,000 sq.ft retail area, 900+ car parking Designed by RTKL (UK), construction by L&T Houses volume retailers like Spencer’s, Starmark, Lifestyle as well as international luxury
Slide 23: Retail Business
RETAIL BUSINESS cimttTeo 23
Slide 24: Spencer's Retail
Spencer`s Retail Rs 1500 crs food-first, multi-format retailer since 1996 Organized retail business 130+ stores spread over 38 cities and about 1.1 mn sq ft 14% same store sales growth in 3 of last 4 years Private label program across food, fashion, home and general merchandising. Target
Slide 25: Spencer's Retail - three stages of evolution
Spencer's Retail - three stages of evolution • Consolidation by shutting down non- performing stores • Improving • RPG Enterprises • 1st hypermarket • First standalone retail store profitability from • Change in brand buys a majority inaugurated inaugurated at Vadodara loss of Rs. 300 cr to position
Slide 26: How Spencer's Makes Fine Living affordable
How Spencer’s “Makes Fine Living affordable” • A blend of commodity (80%) & indulgence (20%) merchandise with relevant opening price points FINE LIVING AFFORDABLE We’re on top of Bright, clean Superior quality trends so you will stores, category products since find the latest and Market Right prices
Slide 27: Spencer's focused geographical presence and planning growth
Spencer's has focused geographical presence and planning growth 34 hyper stores across 5 regions ; 94 smaller stores Planning to open 12-14 new hyper stores in FY`14- focused in 3 main regions 15 Hyper defined as clear focus area 12-14 new hyper stores to be opened in FY` 14-15 Haridwar (1) • All st
Slide 28: Sales Mix (FY'13-14)
Sales Mix (FY`13-14) E&E APPAREL 5.7% 5.8% HWP 9.4% STAPLES 20.3% LIQUOR 3.4% FRESH 15.0% FMCG 40.4% Food has highest share ~ 80% 28
Slide 29: Store count for last four years
Store count for last four years … Store Count 10-11 11-12 12-13 13-14 HYPERS 20 26 25 34 (Avg 23,000 sft) (53%)* (56%) (64%) (74%) SUPER 13 15 14 13 (Avg 6700 sft) (7%) (7%) (9%) (9%) DAILY 157 144 98 81 (Avg 2200 sft) (40%) (37%) (27%) (17%) ALL TOTAL 190 185 137 128 * Value contribution No of Hype
Slide 30: Operating performance
Operating performance: Sales/ sqft (Rs./month) GMROF (Rs./month) Opex/ sqft (Rs./month) Store EBIDTA (Rs./month) 30
Slide 31: Working capital trends
Working capital trends Net Working Capital Category (Rs. Mn) Mar'09 Mar'10 Mar'11 Mar’12 Mar'13 Mar'14 Staples 50 0 -13 21 -8 -3 FMCG 140 60 -34 25 68 108 Apparel 130 100 36 50 30 14 E&E 90 50 14 20 22 -1 HWP & Fur 100 70 19 -5 10 -8 Others 10 -30 -38 -15 -31 -25 Total 520 250 -16 96 91 85 No. of da
Slide 32: Private Label
Private Label FMCG / Food FMCG / Non- Food 32
Slide 33: Specialty Brands - Au Bon Pain
Specialty Brands -Au Bon Pain Au Bon Pain is a is a fast casual dining concept founded in Boston in 1978 by the late Louis Kane and has over 280 cafes across the world RP-SG group is the master franchisee of Au Bon Pain, USA in India Started in 2009, in Bengaluru; Au Bon Pain Café India Limite
Slide 34: Firstsource Solutions Ltd.
Firstsource Solutions Ltd. 34
Slide 35: An Overview
An Overview Leading Scale Pure play BPO company in India Player Founded In December 2001 by ICICI Ltd, CESC acquired majority stake in FY`13 Major CESC (56.69%), ICICI Bank (4.86%%) Shareholders Full range of business process management services across the customer life cycle delivered throu
Slide 36: Scalable, Global Delivery Platform
Scalable, Global Delivery Platform UK & Ireland 6 Centers 4,308 Employees 2,142 Seats India USA 22 Centers 14 Centers 17,927 Employees 3,590 Employees 16,064 Seats Philippines 3,294 Seats 3 Centers Sri Lanka 1,129 Employees 1 Center 712 Employees 1,408 Seats 480 Seats Employee Strength : 27,600+ | C
Slide 37: Financial Performance – FY2014
Financial Performance – FY2014 (IN INR Million) FY 2013 FY 2014 Income from services 28,440 31,270 Revenue From Operations Other operating Income (255) (211) Revenue from operations 28,185 31,059 10.2% Y-o-Y Personnel and Operating Expense 25,390 27,438 Operating EBITDA 2,796 3,621 Operating EBITDA
Slide 38: Business Turnaround / Strategy
Business Turnaround / Strategy FY`13 FY`14 FY`15 Consolidation of delivery centres Cost rationalization drive to Growth drivers in place – improve operational US Healthcare reforms, efficiency and increase Recovery from financial seat utilization crisis Full Repayment of FCCB of USD 237 mn in Decemb
Slide 39: Thank You
Group Thank You uimiteo