Tata Power Company Limited · NSE:TATAPOWER
Tata Power — The Tata Power Company — Investor Presentation (July 2010)
64 slides from Tata Power's investor presentation, July 2010
Slide 1: Presentation Title
Presentation Title The Tata Power Company Ltd July 2010 Presentation Subtitle 1
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to The Tata Power Company Limited’s general business plans and strategy, its future outlook and growth prospects, and future d
Slide 3: Agenda
Agenda Part A: Overview of Tata Power Part B: Tata Power Generation Part C: Projects Part D: Other Power Businesses Part E: Other Businesses Part F: Financial Performance Part G: Sustainability 3
Slide 4: Part A: Overview of Tata Power
Part A: Overview of Tata Power
Slide 5: A Tata Company
A Tata Company Business Sectors Revenue Largest Companies FY 2009 15% Rs 325,334 cr $ 71 bn 24% 45% 3% 6% 3% 4% Profits FY 2009 Rs 8,163cr 25% $ 1.8 bn -30% 59% 10% 16% 12% 8% 5
Slide 6: Tata Power Group – Major Investments
Tata Power Group – Major Investments Tata Power Subsidiaries Joint Ventures Investments & Associates Coastal Gujarat Power TECHNOLOGY 100% 30% KPC Ltd. (Mundra UMPP) Trust Energy Resources 5% Exergen 100% 30% Arutmin Pte. Ltd 10% Geodynamics Maithon Power Ltd. 30% Indocoal 74% 40% Tubed Coal 74% Ind
Slide 7: Businesses
• Trombay 11,12 • Hydro 11 Businesses • Jojobera 15 • Belgaum 14 • Haldia 12 • Wind Farm 17 Generation • Mundra 20-24 Division • Maithon 25-27 Other Entities • IEL 16,28,29 • Dagachhu 30 Transmission • Mumbai 40 • Powerlinks 41 Power Business • Mumbai 37,38 Distribution • Delhi: NDPL 39 Tata Power T
Slide 8: Part B: Tata Power Generation
Part B: Tata Power Generation
Slide 9: Generation: Business Models
Generation: Business Models Returns Upside Value Drivers Our Projects Regulated Normative RoE Savings on Norms. Operational Mumbai Operations, PLF incentive Efficiency Maithon, Wind Captive Power PPA driven Merchant sales + Trading Jamshedpur (PH6), Plant Saving on agreed Capabilities + Jojobera ter
Slide 10: Existing Presence
Existing Presence Mumbai 2027 MW Other Projects: 1. Indonesian Coal Mines: 30% stake Mumbai Operations 2. Australia: Geodynamics, 10% stake Generation 3. Australia: Exergen, 5% stake Thermal 1480 MW Powerlinks NDPL Hydro 447 MW Distribution Transmission Gujarat 50 MW Jojobera 428 MW Jamshedpur (IEL)
Slide 11: Mumbai Operations - Generation
Mumbai Operations - Generation Thermal Hydro Trombay - Thermal Unit Capacity Fuel Location Capacity Unit 4* 150 MW Oil & Gas Khopoli 72 MW Unit 5 500 MW Oil, Coal & Gas Bhivpuri 75 MW Unit 6 500 MW Oil & Gas Bhira 300 MW Unit 7 180 MW Gas Total 447 MW Unit 8 150 MW Coal Total 1480 MW * Unit 4 on sta
Slide 12: Merchant Capacity
Merchant Capacity Haldia* Trombay - Unit 8 Project Capacity 100 MW 100 MW Customers PPA with Tata Power Trading PPA with Tata Power Trading Hot flue gases from Hoogly Fuel Imported Coal Metcoke MUs Sold (FY10) 611 475 * Remaining 20 MW in Haldia under PPA to WBSEDCL; MUs sold include 20 MW Haldia Tr
Slide 13: Non-PPA Capacity - Mumbai
Non-PPA Capacity - Mumbai Starting April 1, 2010 we expected to have 458 MW (excl. 42 MW from Unit 4) to be released from its existing allocations. 100 MW of this was tied up with BEST and 358 MW was expected to be available to be sold under a new long-term PPA and/or in the short-term/trading m
Slide 14: Belgaum
Belgaum Capacity • 81 MW Generation (MU) Fuel Type • Heavy Fuel Oil 500 400 Customer • KPTCL 300 • 12 year PPA till 2012 200 100 Business • Bid Driven – Case 2 0 Model • Fuel charge is pass through FY07 FY08 FY09 FY10 • Other charges recovered as fixed PLF (%) 27 33 63 55 cost 14
Slide 15: Jojobera
Jojobera Capacity • 428 MW Generation (MU) • Unit 1: 67.5 MW, Unit 2-4: 120 MW each 3000 Fuel Type • Domestic Coal 2500 Customer • Tata Steel • 20 year PPA till 2017 2000 Business • Captive FY07 FY08 FY09 FY10 Model • Fuel and Interest are a pass through • Other expenses on normative basis PLF (%) 7
Slide 16: PH-6 (IEL)
PH-6 (IEL) Capacity • 120 MW Ownership Structure • IEL (74:26 JV of Tata Power and Tata Steel) CoD • Q2 FY10 Fuel Type • Coke Oven Gases of Tata Steel Customer • Tata Steel Business Model • Captive • Fuel and Interest are a pass through • Other expenses on normative basis Generation (FY10) • 563 MU
Slide 17: Wind
Wind Capacity • ~221 MW Generation (MU) Customer • Maharashtra: TPC-D 100 MW 3rd Party 21 MW 400 • Karnataka: BESCOM 50 MW • Gujarat: GUVNL 50 MW 200 0 Business • Mainly Regulated Model FY07 FY08 FY09 FY10 • Tariff based on State regulations PLF (%) 19 20 19 19 FY11 Tariff Annual (Rs / kwh) Escalati
Slide 18: Part C: Projects
TATA ry | Part C: Projects
Slide 19: Generation Projects Under Implementation
Generation Projects Under Implementation Maithon1050 MW Mundra 4000 MW Jojobera 120 MW Maharashtra 143 MW Mulshi 3 MW Thermal 5170 MW Tamil Nadu 99 MW Wind 242 MW Solar 3 MW Other Projects: 1. Bhutan: Dagachhu Hydro Project, 26% stake 19
Slide 20: Mundra UMPP
Capacity • 4000 MW (5 x 800 MW) Ownership Structure • 100% subsidiary; Coastal Gujarat Power Limited Business Model • Case 2 – Bid Driven Fuel Requirement • Imported Coal, 11-12 mtpa Fuel Source • Offtake agreement with KPC and Arutmin for 10.11 ± 20% • Looking for additional mines in Australia, Moz
Slide 21: Mundra UMPP
Current Status • Overall 53% work completed; 10,500 people on site Construction Unit 1 Boiler Hydro testing successfully completed on April 3, 2010 Activities TG and Auxiliaries for Unit 1 received on site and TG Stator placed on deck Structural erection work for Unit 2 is in very advanced sta
Slide 22: Mundra – Site Photographs
Mundra – Site Photographs West Side View 22
Slide 23: Mundra – Site Photographs
Mundra – Site Photographs Intake Channel - Charged 23
Slide 24: Mundra – Site Photographs
Mundra – Site Photographs Boilers – All 5 Units 24
Slide 25: Maithon
Capacity • 1050 MW (2 x 525MW) Ownership Structure • 74: 26 JV of Tata Power and Damodar Valley Corporation Business Model • CERC Regulated Fuel Requirement • Domestic Coal Fuel Source • 100% linkage sanctioned. Active discussions on to sign Fuel Supply Agreements with coal mines Customers • DVC (30
Slide 26: Maithon
Current Status Over 82% of work completed Construction Unit 1: Boiler Hydro test completed on March 23rd, 2010 Activity Unit 1: Turbine erection to start shortly FSA with BCCL signed for 1.6 MTPA; other FSAs expected soon We expect to sign FSAs with CCL (~2 MTPA) and Tata Steel (~1 MTPA)
Slide 27: Maithon – Site Photographs
Maithon – Site Photographs EOT Crane #1 commissioned at Power House #1 Power House #1 structural erection in progress 27
Slide 28: IEL – Unit 5, Jojobera
IEL – Unit 5, Jojobera Project Capacity • 120 MW Ownership Structure • IEL Business Model • Captive Power Plant Funding • Project Cost: Rs 620 Crores • D/E 70:30 Construction • Synchronized in April, 2010 Activity • Commissioning expected in July 2010 Project Description • Fuel: Coal Linkage from We
Slide 29: Jojobera (Unit 5)
Jojobera (Unit 5) CW Pump Motors Erected Mill and Bunker Erection in Progress 29
Slide 30: Hydro Projects
Hydro Projects Exclusive partnership agreement with SN Power, Norway to develop joint hydropower projects in India and Nepal JV with SN Power Aim to have 2000 MW under construction or in operation by 2015 Establish jointly owned Services Company to provide technical and managerial expertise
Slide 31: The Indian Solar Scenario
The Indian Solar Scenario NATIONAL SOLAR MISSION (CENTRAL LEVEL) TARGET Grid-parity for solar power by 2022, and coal-based parity by 2030 ROADMAP Installed Capacity Phase I Phase II Phase III (in MW) 2009 - 2013 2013 - 2017 2017 - 2022 Grid-connected 1000 - 2000 4000 – 10,000 20,000 Off-grid 200 10
Slide 32: Tata Power Solar Intent
Tata Power Solar Intent Our intent is to leverage the National Solar Mission ( NSM) policy and grow our solar portfolio We expect to have 300 MW solar based capacity over the next 4-5 years We are currently implementing a 3 MW, Solar PV based, grid-connected plant in Maharashtra The plant is
Slide 33: Captive Coal Blocks
Captive Coal Blocks Mandakini Coal Block • 7.5 MTPA (jointly allotted with Jindal Photo Film and Monnet Ispat & Energy - each JV Partner having a share of 2.5 MTPA) at Dist. Angul, Orissa • Mining plan approved by MoC Land acquisition for the coal block is expected by March 2012 and 6(i) notificat
Slide 34: Projects in Pipeline
Projects in Pipeline Project Fuel Source Capacity (MW) Coastal Maharashtra (Dehrand) Imported Coal 1600 + 800 Naraj Marthapur IPP Captive Coal - Mandakini 1200 Captive Coal – Tubed + Tiruldih IPP / CPP 1200 Coal from Tata Steel Corus (Tata Steel) Production Gases (Corus) 525 Tama Koshi, Nepal Hydro
Slide 35: Generation Capacity (Tata Power Group)
Generation Capacity (Tata Power Group) Excludes Projects Under Planning 10000 8411 Opening Capacity 2400 8000 Total Capacity at Year End 6011 1718 Capacity 6000 4293 1315 2978 4000 2786 192 421 2000 2365 Unit 8 250 PH6 120 Wind 81 Wind 42 New Units Commissioned Haldia 90 Haldia 30 0 2008 2009 2010 2
Slide 36: Part D: Other Power Businesses
Part D: Other Power Businesses
Slide 37: Distribution Customer Profile – Mumbai
Distribution Customer Profile – Mumbai Sales (MUs) Bill payment Kiosk Residential Commercial 4% 21% Essential 40% Industrial 35% Over 50,000 customers since MERC Order allowing us to distribute power to retail customers ~500 customers being added every day Regulated Equity: Rs 187 Cr (FY 10) RoE
Slide 38: Our Growth Expectations in Mumbai
Our Growth Expectations in Mumbai Customer Base (Lakhs) Energy (BU) and Peak Demand (MW) Regular Changeover 4.2 ~800MW 3.4 ~4.0 ~570MW 2.5 ~2.5 0.8 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 38
Slide 39: North Delhi Power Limited (NDPL)
North Delhi Power Limited (NDPL) PAT Rs. crore Customer Base • >1 million customers with 400.00 5000 MUs of consumption 300.00 200.00 Business Model • Regulated 100.00 Revenue (FY10) • Rs 3277 Cr - FY07 FY08** FY09 FY10 Regulated • Rs 720 Cr Equity Incentives* 72 53 79 58 * Reset of Target AT&C loss
Slide 40: Transmission - Mumbai
Transmission - Mumbai • Around 1100 ckm network comprising of 973 ckm of 220 kV / 110 kV overhead lines and 124 ckm of 220 kV / 110 kV underground cables. • Two Extra High Voltage (EHV) lines capacity augmented (170 MVA to 350 MVA) by replacement of the conductor with new technology “High Ampacity c
Slide 41: Powerlinks Transmission Limited
Powerlinks Transmission Limited Capacity • 1200 km 400 kV double-circuit PAT Rs. crore transmission lines 120 Business Model • Regulated 100 80 Revenue (FY10) • Rs 301 Cr 60 40 Regulated Equity • Rs 464 Cr 20 0 ROE % • 15.5% FY08 FY09 FY10 Incentive • As a percent of equity on availability Structure
Slide 42: Indonesian Coal Mines – Structure of Investment
Indonesian Coal Mines – Structure of Investment Tata Power Company Ltd. (India) Bhivpuri Bhira Investments Ltd. Investments Ltd. (Cyprus) (Mauritius) Indocoal KPC Arutmin (Cayman Islands) (Indonesia) (Indonesia) Bumi Resources (Indonesia) 42
Slide 43: Stake Sale in Coal SPVs
Stake Sale in Coal SPVs • On June 30th, 2010 we signed an agreement with Olympus Capital Holdings Asia (Olympus Capital) to raise $300 mn through shares with differential rights in Bhira Investments Limited and Bhivpuri Investments Limited (the Coal SPVs) • This amounts to a 14-15% stake sale in the
Slide 44: Indonesian Coal Mines
Indonesian Coal Mines Organizational Structure Offtake Agreement • 40% representation on the Board of • 10.1+ 20% MT on a take or pay basis Commissioners and the Board of Directors • Indocoal Resources (Cayman) agrees to with affirmative rights trade outside of India any coal that Tata • CFOs at KPC
Slide 45: Indonesian Coal Mines
Indonesian Coal Mines Operating Performance CY ‘09 CY ‘08 • Quantity mined (MT) ~63 ~53 • Average Selling Price (FOB USD/ton) ~62 ~73 • EBITDA from Operations (USD mn) 815 1131 Source – Bumi Resources Debt Repayment Schedule (as of June ‘10) Loan Loan Amount Interest Maturity Repayment Details Amoun
Slide 46: Shipping Subsidiaries
Shipping Subsidiaries • Trust Energy Resources Pte Ltd incorporated in Singapore for owning ships to meet shipping requirements and trading in fuels, Energy Eastern Pte Ltd incorporated for chartering of ships • Present shipping requirements of 8 vessels for Mundra • To be met through a combination
Slide 47: Tata Power Trading Company Limited
Tata Power Trading Company Limited TPTCL Sales (MU) 5000 4000 3000 TPTCL is one of 2000 the largest trading 1000 0 company with FY06 FY07 FY08 FY09 FY10 over 9% market share FY10 Revenue – Rs 2357.7 Cr PAT – Rs 8.2 Cr 47
Slide 48: Part E: Other Businesses
Id TATA Part E: Other Businesses Lighting up Lives! ye *
Slide 49: Strategic Electronics Division (SED)
Strategic Electronics Division (SED) • Revenues of Rs.123 Cr (Mar 10) against Rs.101 Cr during the previous year. • First batch of Pinaka Launchers was successfully subjected to Factory Acceptance Tests (FAT) by the Ministry of Defence • SED completed the delivery of Air Defence Systems based on Com
Slide 50: Tata BP Solar
Tata BP Solar • 51:49 JV between BP Solar and Tata Power • Market leader in Solar Photovoltaic technology in India with a turnover of Rs 976 crores in FY10 • The turnover of the Co. in India and SAARC region is about Rs. 278 crores. With exports to BP Solar accounting for about Rs. 698 Crores • Near
Slide 51: Part F: Financial Performance
Part F: Financial Performance
Slide 52: Standalone – Year Ended March 2010
Standalone – Year Ended March 2010 Rupee in Billions FY10 FY09 Operating Income 70.98 72.36 Operating Expenditure (52.36) (61.17) Operating Profit 18.62 11.19 Interest & Finance Charges (4.07) (3.06) Depreciation (4.78) (3.29) Other Income 2.29 4.88 Profit Before Tax 12.59 11.16 Provision for Taxes
Slide 53: Consolidated – Year Ended March 2010
Consolidated – Year Ended March 2010 Rupee in Billions FY10 FY09 Operating Income 189.86 180.61 Operating Expenditure (151.51) (145.16) Operating Profit 38.35 35.35 Interest & Finance Charges (7.64) (7.09) Depreciation / Impairment (8.93) (9.37) Other Income 1.33 3.99 Profit Before Tax 27.67 24.64 P
Slide 54: Funding Requirement (FY11-FY13)
Funding Requirement (FY11-FY13) Own Funds Debt (Rs.4,700 Crores) (Rs.13,200 Crores) • Internal accruals: Rs.3500 Crores • Domestic loans through domestic financial institutions, banks and capital markets • Balance FCCB proceeds (as on Mar 31, ‘10): $ 250 mn • Foreign loans through External Credit Ag
Slide 55: Tata Power – Financials (Standalone)
Tata Power – Financials (Standalone) Annual Sales (MU) Profit After Tax (In Billion Rs.) 8.70 9.22 9.39 14,422 14,959 14,703 15,574 6.11 6.97 13,616 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 EPS (in Rs.) Net Worth (In Billion Rs.) 91.32 44 41 39 71.26 34 64.26 29 40.10 44.67 2006 2007 2008 2
Slide 56: Tata Power – Financials (Consolidated)
Tata Power – Financials (Consolidated) Profit After Tax (In Billion Rs.) 19.67 10.55 12.19 7.47 7.59 2006 2007 2008 2009 2010 EPS (in Rs.) Net Worth (In Billion Rs.) 85.01 100.84 57.09 76.73 47.47 64.78 35.95 37.19 39.26 44.27 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 56
Slide 57: Dividend History
Dividend History 50 50 Dividend (Rs) 45 EPS (Rs) 45 40 Payout Ratio (%) 40 35 35 30 30 Rs 25 25 % 20 20 15 15 10 10 5 5 0 0 FY06 FY07 FY08 FY09 FY10 57
Slide 58: Part G: Sustainability
Id TATA Part G: Sustainability Lighting up Lives! aye
Slide 59: Our Sustainability Initiatives
Our Sustainability Initiatives • Trombay SO2 emission of 24TPD (1330MW) - one of the most stringent • Forum of 46 global companies: New policy framework on Combating Climate Change (3C) • Carbon Footprint calculation for the Company completed • Sustainability Council formed - 17 CDM Projects Identif
Slide 60: Thrust on Renewables
Thrust on Renewables • Wind: Exploring newer technologies and development options • Solar: National Solar Mission Opportunity • Geothermal: Opportunities in Australia, Indonesia and India • Hydro Power: Identification and development of hydro projects • 26% stake in Dagachhu Hydro Project in Bhutan
Slide 61: Various Technologies being Explored
Various Technologies being Explored • Solar Concentrated Thermal (SCT) • Geo Thermal energy • Coal beneficiation technologies 61
Slide 62: Demand Side Management and Energy Conservation
Demand Side Management and Energy Conservation • Tata Power Energy Club formed for curbing energy wastage through school children. The Club has sensitised over 50,000 students across India who have sensitised over 75,000 people in their community • Energy conservation awareness campaigns for Custome
Slide 63: Our initiatives on DSM and Energy Conservation
Our initiatives on DSM and Energy Conservation 63
Slide 64: Thank you
kd TATA Thank you We take pride in Lighting up Lives! Lighting up Lives! TATA POWER :; 3K
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