Cesc Ltd · NSE:CESC
Cesc — Investor Presentation (November 2018)
52 slides from Cesc's investor presentation, Nov 15, 2018
Slide 1: Investor Presentation cover letter to exchanges
~ .... RP- Sanjiv Goenka , ~ Group Growing Legacies SEC: SB: 31352 15 November, 2018 Manager (Listing) National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G- Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 The Secretary Bombay Stock Exchange Limited Phiro
Slide 2: CESC Limited - Powering India since 1899
~~ RP- Sanjiv Goenka , ~ Group CESC Limited Powering India since 1899 1
Slide 3: ~~ RP- Sanjiv Goenka
~~ RP- Sanjiv Goenka , ~ Group This presentation has been prepared by and is the sole responsibility of CESC Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitati
Slide 4: Growing Legacies
RP- Sanjiv Goenka Group Growing Legacies G R O W I NG s 0 U R C U L T U R E. CESC NPCL ICML SURYA VIDYUT LIMITED HALDIA. IENERGV LIIIIT£D t • ' Phillip s C a r b on B la c k l .•imil ed firstsource· spencer·s M•kes fine liwi ng ~ Quest Proper-ties India Limited WOODLANDS HOSPITAL 0 open medlo networ
Slide 5: RP-Sanjiv Goenka Group
~~ RP- Sanjiv Goenka , ~ Group RP- Sanjiv Goenka Group RP-Sanjiv Goenka Group is a well known diversified business house in India RP- Sanjiv Goenka RP-Sanjiv Goenka Group has interests across Group diverse business sectors - Power & Natural Growing Legacies Resources, Carbon Black, IT & Educatio
Slide 6: CESC Corporate Restructuring - Transaction Overview
~~ RP- Sanjiv Goenka , ~ Group CESC Corporate Restructuring - Transaction Overview The Board of Directors of CESC has approved a business restructuring scheme in their meeting held on 18th May 2017 and the Company also submitted the scheme with the Stock Exchanges on 21st July 2017 The business
Slide 7: Power Business Generation & Distribution
~~ RP- Sanjiv Goenka , ~ Group POWER BUSINESS GENERATION & DISTRIBUTION 6
Slide 8: Operational Facilities - Overview
RP- Sanjiv Goenka OPERATIONAL FACILITIES -OVERVIEW Group Renewables Kolkata Distribution Business Independent Power Plants 600 MW thermal power plant in Coal Mining, Power Generation & Chandrapur, Maharashtra Noida Distribution Distribution (Project cost Rs. 38 billion) -1125 MW thermal power plant
Slide 9: Overview of CESC - Kolkata Distribution Business
~~ RP- Sanjiv Goenka , ~ Group Overview of CESC - Kolkata Distribution Business India’s oldest electricity utility, operating since 1897- 100+ years of experience Power Map Engaged in Coal mining, Generation and Distribution of electricity to city of Kolkata & adjoining areas Almost entire ene
Slide 10: Awards & Recognitions
~~ RP- Sanjiv Goenka , ~ Group Awards & Recognitions Dun & Bradstreet Infra Awards 2017 – Best Distribution Company Budge Budge TPP Awarded as the 8th CII national HR excellence awards Gold Winner at the 2017 – Significant Global Environment achievement in HR Award 2016 Recent Recognitions CBIP Awar
Slide 11: CESC Service: Improving Consumer Experience
~ ~ ~~ GRP-SanjivGoenka rr~ roup Web Services Mobile CESC SERVICE Apps Improving Consumer Experience with superior customer service SMS Services :. .... _- ·= qst 24x7 Call Centre Branding Communication – Web chat etc Enriching Consumer Experience Social Media 10
Slide 12: ~~ RP- Sanjiv Goenka
~~ RP- Sanjiv Goenka , ~ Group 11
Slide 13: CESC Standalone Financials
~~ RP- Sanjiv Goenka , ~ Group CESC Standalone Financials PBT (Rs. Bn) Long Term Debt / Equity Ratio 10.99 11.02 10.46 0.70 0.65 8.83 0.6 0.60 0.60 8.25 0.60 7.73 6.93 0.5 [VALUE]0 6.14 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Financial nos. from FY’16 compiled under IND AS FY11 FY12 FY13 FY14 FY15 F
Slide 14: 600 MW Haldia Thermal Power Project, West Bengal
600 MW Haldia Thermal Power Project, West Bengal RP- Sanjiv Goenka Group To meet the growing need of CESC consumers - new 600 MW (2x300) TPP commissioned in Haldia, near Kolkata in 2015 Fully regulated project approved by WBERC, entire 600 MW power being supplied to CESC, PPA approved by WBERC
Slide 15: 600 MW Chandrapur Thermal Power Project, Maharashtra
~~ RP- Sanjiv Goenka , ~ Group 600 MW Chandrapur Thermal Power Project, Maharashtra Constructed in Chandrapur, near Nagpur with 2x300 MW configuration, commissioned in 2014 Project cost of Rs. 38 bn funded at 75:25 debt equity ratio Fuel Supply Agreement signed with Coal India Ltd BTG suppli
Slide 16: Noida Power Company Limited
RP- Sanjiv Goenka Group Noida Power Company Limited • Started operations in 1993; JV with Greater Noida Industrial Development Authority • Area: 335 sq.km. (equivalent to Mumbai), 118 villages fully electrified • Population: 7 lakh No. of consumers: 82,231 • Peak Power Demand: 350 MW • Units sold: 1
Slide 17: ~~ RP- Sanjiv Goenka
~~ RP- Sanjiv Goenka , ~ Group 16
Slide 18: Distribution Franchisee-Kota, Bharatpur and Bikaner
~ . --,~ RP - Sanjiv Goenka Group Distribution Franchisee-Kota, Bharatpur and Bikaner t 7r CESC itllitl l I M I T E 0 (HIJIWI u... . ......... I i Particulars Kota Bharatpur Bikaner r --~ ,, (10.5 months) Area (Sq. Km.) 176 50 155 Population (Nos. Lakh) 11.76 2.52 6.44 Consumer Count (Nos. Lakh) 2.2
Slide 19: Key Interventions after Takeover
~~ RP- Sanjiv Goenka , ~ Group Key Interventions after Takeover Soft value enhancement for Loss Reduction Initiatives Network Reliability customers • Defective meters replaced • Centralized Command Station • New connection within a day • Regular billing for consumers • Diesel Gen Sets on stand-by fo
Slide 20: Visible Changes-Distribution Franchisee
~~ RP- Sanjiv Goenka ~~ Group Visible Changes-Distribution Franchisee [HIIJM'II Uwtt • S.C. lffl GUMANPURA CHOWK DESAGGING OF CHAMBAL RIVER CROSSING OVERHEAD 33KV BEFORE AFTER BEFORE AFTER 33kV GSS after Maintenance Customer Help Desk New Connection Camps 19
Slide 21: Renewables
~~ RP- Sanjiv Goenka , ~ Group Renewables Dangri, Mahidad, Rajasthan Nipaniya, Rojmal, Neeravi, Gujarat- Total -Wind M.P.-Wind Gujarat T.N.- Solar Wind Installed Capacity 24 26 36 70 18 174 Wind Farm Site: (MW) Rojmal Gujarat. COD Mar’13 Dec’14 Mar’16 Mar’17 Jan’16 • One of the best portfolios in te
Slide 22: Crescent Power
RP- Sanjiv Goenka Group Crescent Power • Generating Station: 40 MW AFBC based power plant • Plant set up at CESC’s Sarisatolli coal mine pit in West Bengal • Power sold to the grid • Plant uses washery rejects, with Carbonaceous Shale as fuel • Connected to State Transmission Utility Grid Substation
Slide 23: Retail
~~ RP- Sanjiv Goenka , ~ Group RETAIL 22
Slide 24: Future Of Organized Retail
Makes fine living affordable Future Of Organized Retail FY16 Share of Retail % ORP % ORP % Organized Retail Growth in India(US $ billion) (FY16) (FY16) (FY20P) Food and Grocery 67 3 5 CAGR: 24.5% 180 Apparel & Accessories 8 22 33 Jewellery & Watches 8 27 30 CDIT 6 25 32 Home & Living 4 10 12 60 Phar
Slide 25: Spencer's Retail: Profile
Spencer’s Retail: Profile Makes fine living affordab/,e Rs.2100+ Cr. food-first, Multi-Format Retailer. 137 stores spread over 30+ cities and about 1.2 mn.sft driving more than 4 Cr.+ Footfalls. Private label program across Food, Fashion, Home and General Merchandising. Planning to roll out
Slide 26: Sales Mix: Food has highest share ~82%
Makes fine living affordab/,e Sales Mix HWP 10% Staples 19% FMCG incl Liquor 49% E&E 4% Apparel 4% ■ HWP ■ Staples ■ E & E F&M and Bakery F&V 7% ■ Apparel ■ Liquor ■ F&V 6% ■ FMCG Food has highest share ~ 82% 25
Slide 27: Store Footprints
Makes fine living affordable Store Footprints 63 Large Stores & 74 Small Stores across India “Large Format Stores” defined as clear focus area H a r i d1.~1a r (1 ) 15-20 new stores to be opened annually • Gh az:i ab a d (3') Gur 0crao n 1'4 ) • • • A li gar h[ l ) • ~ • Gr eat r e r N o i d ai (1 )
Slide 28: Building Blocks for Spencer's
Makes fine living affordab/£ Building Blocks for Spencer’s Conveniently located – in the existing Geography- preferably through compact hyper markets Serve customer through Omni-channel – Offline & Online -increase frequency Increase strength in Non-Food categories especially Apparels Offer the best
Slide 29: Private Label Program
Makes fine living affordabl,e Private Label Program • 1400 +SKUs across categories; Apparel, Staples, FMCG, E&E & HWP • Clear Role Matrix - Market share Enhancer /Margin Builder /Differentiator /Promotional • Tiered program to cater varying customer needs. National F ASH I ON FOR WHO I WANT TO Bf ll
Slide 30: Spencer's Smart Rewards - Raising The Bar to Next Level
Makes fine living affordable Spencer’s Smart Rewards- Raising The Bar to Next Level Target to reach CRM contribution to sale at 70% by FY19 • Spencer’s generates over 65% sales from its base of over 28 lacs Smart Reward (SR) members. spencers ,, II ■ 111-11111111111 1r • Average Bill Value of a SR m
Slide 31: Omni Channel Strategy
Makes fine living affordab/,e Omni Channel Strategy To Increase Spencer’s Share in Consumers Grocery Basket Out of 12 grocery shopping trips per month, hypermarket gets 2 trips (A C Neilsen Survey). To increase the Trip Mission of the same customer and thereby increase in share of Wallet, www.spence
Slide 32: Strengths of www.spencers.in
Strengths of www.spencers.in Makes fine living afford.ab/,e • Cost of customer acquisition is very low. • Existing offline Spencer’s stores are acting as distribution Gurgaon Noida centers to serve the order so limited logistics cost. Delhi Lucknow • Very encouraging response from the shoppers. Kolk
Slide 33: Operating Performance
Operating Performance Sales/ sqft (Rs./month) SSSG (%) 16.1% 14.3% 1576 1528 1595 1452 9.9% 1349 9.0% 8.4% 8.8% 1305 1226 5.3% 1060 -1.1% FY`12 FY`13 FY`14 FY`15 FY`16 FY`17 FY`18 FY`19(H1) FY`12 FY`13 FY`14 FY`15 FY`16 FY`17 FY`18 FY`19(H1) Average Bill Value (Rs./bill) Number of Bills (Lakhs) 723
Slide 34: CESC Ventures
~~ RP- Sanjiv Goenka , ~ Group CESC VENTURES 33
Slide 35: Company Overview
~~ RP - Sanjlv Goenka , ~ Group Company Overview Catt1-...lff•• • S..1ffl FMCG Bowlopedia Restaurants Firstsource “Quest” Solutions Ltd. Shopping :Business Mall in Process Kolkata with Management 4,15,000 company in sq.ft. retail w THE India area CHEF'S BOWL' 34
Slide 36: Firstsource Solutions: What we do
~~ RP- Sanjiv Goenka , ~ Group Firstsource Solutions: What we do We work across… To help our clients… .,,. - .,,. - ✓ ~ \ ' ,✓~', I '\ ~0 nr \I 71) ' \ 0) \ ,• ..u... I Drive Improve customer Telecoms & experience Healthcare transformation Media BFSI & Other Maximise Optimise costs Banking, Insuranc
Slide 37: Our global footprint
Our global footprint 4 countries 3 centres 19,000 people 9 + Right-shore: B2B2C Business Model UK USA 8 centres 18 centres Philippin • Belfast • Amherst, NY • Kingston, NY es • Cardiff (2) • Miami, FL • Louisville, KY (3) • Derby India 2 centres • Durham, NC • Rockford, IL • Derry • Gahanna, Ohio •
Slide 38: Solutions that solve business challenges
s.olutions that solve b,usiness ch.a llenges 1 R,o botic Integrated Analytics Rev,e nue Process Custo·m er & Insights Maximiser A utom.a tion Contact M ,a nagement Use SDeE>ch anallytics a4fld in-depth insi-ghts Increase efficiency, Optimise operaticHls., Glean deecier 1to idet'ltify Increase n=>'L=
Slide 39: Financial Performance-FY2018
~~ RP- Sanjiv Goenka , ~ Group Financial Performance-FY2018 Revenue From Operations (IN INR Million) FY 2017 FY 2018 40,000 35,556 35,352 ~ 35,000 0.6%Y-o-Y Income from services 34,569 34,315 .; a:: 30,000 Other operating Income 987 1,037 25,000 Revenue from operations 35,556 35,352 Operating EBITDA
Slide 40: Quest-Overview
RP- Sanjiv Goenka Group Quest-Overview Built on 3 acres of land in Kolkata, this is the 1st Luxury Mall of East India. Presently the mall is witnessing strong footfalls of 1 mn+ per month 4,15,000 sq.ft retail area, 900+ car parking Houses volume retailers like Spencer’s, Starmark, Lifestyle
Slide 41: Mall: Key Features
~~ RP- Sanjiv Goenka , ~ Group Mall: Key Featuress DEVELOPER PRIME LOCATION Situated close to Park Circus Quest Properties India Ltd crossing –heart of CBD ARCHITECT LOCATION 33, Syed Ali Avenue, International Retail Kolkata Architect -RTKL 7 CUSTOM ZONED SHOPPINGLEVEL shopping levels spreadover Bas
Slide 42: Brands at Quest
.....:::iiii::f~ RP- Sanjiv Goenka ~~ Group Brands at Quest CII a I Ul'lt D'!-1D' ~ ~ IIOII0911LL I O,.,~A 'i\ \T II tt I h t It II t 1 ' BO:- . . ,~u- ONLY. -..,n \ P\l I . T.-tC COLLl:C o- 1101 • i:O , I•. I t ~ ' 'i ' ..: •, • • '3un~I '::I hut ' • u ... •.t I - .. )&.,l ._. 0•1 II.A ..... , lnc.
Slide 43: FMCG
~~ RP- Sanjiv Goenka , ~ Group FMCG 42
Slide 44: Emerging Indian food trends indicate opportunity for guilt-less snacking
~~ RP- Sanjiv Goenka , ~ Group Emerging Indian food trends indicate opportunity for Our guilt-less snacking proposition Move to ‘Real foods’ with Healthy, Natural ingredients ✓ Preference for Protein rich foods ✓ Consciousness about and backlash on ‘Sugar & Fat content’ ✓ Traditional “Dieting” is sl
Slide 45: Too Yumm!!
~ ~ RP - Sanjlv Goenka CESC LIMITED , ~ Group Too Yumm!! Forayed into FMCG business with packaged food business ’ under brand ‘Too Yumm!!’ in April 2017 Launched 5 Products : Foxnuts, Veggie Stix, Multi Grain Chips, Quinoa Puff & Karare Very rich in Protein & Fibre and low in Fat National Br
Slide 46: ~~ RP-SanjlvGoenka
~~ RP-SanjlvGoenka r r ~ Group 45
Slide 47: E-vita
RP- Sanjiv Goenka Group E-vita Cl 111 Lr<t1 • Su1~tl899 Acquired 70% stake in Rajkot based “Apricot Foods Pvt. Ltd”. Manufacture and sale of Packaged snack food under the brand name of “e‐vita” Giving tough competition to bigger brands like Lays and Balaji in e-Vita’s stronghold like interior
Slide 48: CESC Limited
~~ RP- Sanjlv Goenka , ~ Group cesc LI M IT ED 47
Slide 49: Bowlopedia Restaurants
~~ RP- Sanjiv Goenka , ~ Group Bowlopedia Restaurants Restaurants India Ltd. • FRESHLY GRILLED SANDWICHES• 48
Slide 50: Waffle Wallah
RP- Sanjiv Goenka Group Waffle Wallah Waffle Wallah – 1st brand in India to serve innovative sweet waffles Serves (Sweet Waffles | DIY Waffle | All Day Breakfast |Beverages) No. of Outlets: 19 (Kolkata-10, NCR-9) Launching 30 new stores during FY19 Formats: Parlour (200 to 350 sq.ft.), Kio
Slide 51: Bombay Toastee
~~ RP- Sanjiv Goenka , ~ Group Bombay Toastee Bombay Toastee -1st QSR serving wholesome comfort food, on the go, in a street style yet ____ N....-_ _ _ ___.. _. hygienic environment. Serves 60 unique combinations _ II 1'3~· Serves - wholesome, Experimental, value for money, comfort food l'0As1\.
Slide 52: Thank You
~~ RP- Sanjiv Goenka , ~ Group THANK YOU 51