Coal India Ltd. · NSE:COALINDIA

Coal India — Non-Deal Roadshow (March 2017)

30 slides from Coal India's roadshow presentation, March 2017

  1. Slide 1: Cover letter to NSE on Investors Meet

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  2. Slide 2: Coal India Limited Corporate Presentation

    COAL INDIA LIMITED CORPORATE PRESENTATION 13th to 15th March,2017 1

  3. Slide 3: Coal India Ltd. - Genesis, Vision & Mission

    Coal India Ltd. - Genesis, Vision & Mission 1975 Today • Nationalized coal mines under Coal • Largest pure play coal producer in Mines Authority Ltd, re-organized the world. as Coal India Limited. • CIL was awarded prestigious ‘Maharatna*’ status by GOI • Coal production ~ 79 Mt • Coal production –

  4. Slide 4: Coal – India's Primary Source of Energy

    Coal – India’s Primary Source of Energy1 India - Primary Energy (CY 2015)  Coal provides 30% of global 28.1, 4% 15.5, 2% 8.6, 1% energy needs & generates 195.5, 41.1% of world’s electricity.2 28%  Coal provides 58% of Indian energy needs & generates 407.2, 45.5, 7% 58% 60% of India’s electricity.

  5. Slide 5: Inventory of Geological Resources of Indian Coal

    Inventory of Geological Resources of Indian Coal* (as on 01.04.2016) Figs in Bt Type Proved Indicated Inferred Total % Share Coking 18 14 2 34 11 Non -Coking 120 125 30 275 89 Grand Total 138 139 32 309 100 % Share 45 45 10 100 * Upto a depth of 1200 Meters 4

  6. Slide 6: Inventory of Geological Resources of Indian Coal

    Inventory of Geological Resources of Indian Coal* (as on 01.04.2016) Figs in Bt Depth Proved Indicated Inferred Total % Share Range (m) 0-300 104 67 9 180 58 300-600 18 58 16 92 30 0-600 (for 14 - - 14 5 Jharia Only) 600-1200 3 14 6 23 7 Total 138 139 32 309 100 * Upto a depth of 1200 Meters 5

  7. Slide 7: Coal India – Reserves, Resources & Exploration

    Coal India – Reserves, Resources & Exploration 1 Reserves & Resources • Exploration In Billion • 0.994 million m of drilling done in Parameter FY 2016. tonnes • Expenditure on Exploration in FY 2016 Resources 68.6 – INR 4.75 billion. • Cumulative drilling for last 5 years 3.58 million m, 10 years 5.

  8. Slide 8: India - Demand Supply Scenario

    India - Demand Supply Scenario1 910 Figs. In Mt 1000 885 900 787 725 800 609 639 700 600 500 400 300 218 200 160 200 100 0 2014-15 2015-16 2016-17 : Plan Demand Production Import Source : (1) Source : CCO's Coal Directory of India : 2014-15 and Provisional Coal Statistics : 2015-16 and MOC Annual Pl

  9. Slide 9: India - Sector Wise Demand of Coal (FY2016-17)

    India - Sector Wise Demand of Coal¹ (FY2016-17) 80, 9% Demand (Mt) 24.05, 3% 34.37, 4% 56.62, 6% 689.83, 78% Power Steel Cement Sponge Iron Others 1 Annual Plan of Ministry of Coal, 2016-17 Others includes Bricks, Fertilizers, Aluminium. 8

  10. Slide 10: Coal India: Key to India's Energy Security

    Coal India: Key to India’s Energy Security Coal India contributed 84% to India’s total coal production in FY 2016 FY 2016: Coal Production – India 639 Mt 40, 6.2% 60, 9.4% CIL SCCL 539 84.4% Others ¹ Others includes DVC, TISCO & Captive Blocks 9

  11. Slide 11: Corporate Structure

    Corporate Structure COAL INDIA LTD Shareholding Pattern GOI : 79.11% CPSE-ETF: 1.02% PUBLIC : 19.87% CENTRAL NORTHERN MAHANADI SOUTH CENTRAL MINE COAL INDIA BHARAT EASTERN WESTERN COALFIELDS COALFIELDS LTD COALFIELDS EASTERN PLANNING & AFRICANA COKING COAL COALFIELDS LTD COALFIELD NEC (CIL) (100 %)

  12. Slide 12: Coal India - Key Highlights

    Coal India - Key Highlights World’s Largest Pure • FY16 production of 539 million tonne across Play Coal Producer 413 operational mines, with ongoing projects for further ramp-up. • 68.6 bt Resources and 19.8 bt Reserves Growth Drivers • Expected favorable demand from power & steel sectors. 6 • Coun

  13. Slide 13: Competitiveness of Coal India

    Competitiveness of Coal India • Cost Comparison in Energy Terms: • Cost Comparison in Energy Terms  Pit head price of average CIL coal of G12 Grade (3700 -4000 Kcal/Kg) on GAR basis works out to Rs. 391 per Gcal. This includes all taxes & levies including clean energy cess but excluding CST/VAT. 

  14. Slide 14: Coal India Ltd - Coal Production Trend (Mt)

    Coal India Ltd - Coal Production Trend (Mt) Coking Non Coking 539 435 452 462 494 485 444 408 413 392 43 44 49 50 54 th 2011-12 2012-13 2013-14 2014-15 2015-16 1. CIL’s trend of growth was affected by introduction of blanket ban by MOEF in 2010. 2. With lifting of ban growth restore to 7% in 2014-15

  15. Slide 15: Coal India Limited: Ongoing Projects

    Coal India Limited : Ongoing Projects  121 major ongoing coal projects are under implementation:  Expected contribution of about 400 Mt in FY 2017; planned to reach a level of 561 Mt in FY 2020  Operating large projects – 50 Mty (Kusmunda) & 70 Mty (Gevra Expansion Project). FUTURE PROJECTION OF

  16. Slide 16: Coal India Limited: Future Projects

    Coal India Limited : Future Projects  65 new projects, with a targeted capacity of 302.88 Mty, have been identified in FY 2014-15, of which : • Project Reports for 57 projects have been formulated. • Out of these 57 Projects, 22 projects having ultimate capacity of 180.51 Mty have been approved. Ot

  17. Slide 17: Focus on Meeting Customer Needs

    Focus on Meeting Customer Needs Beneficiation  CIL currently operates 15 washeries  3 Non-coking coal washeries with feedstock capacity of 13.5 mtpa  12 Coking coal washeries with feedstock capacity of 23.3 mtpa  Future Programme: 27 new washeries, capacity 120.18 mtpa,  Coking 18 washeries – 4

  18. Slide 18: Focus on Meeting Customer Needs

    Focus on Meeting Customer Needs CAGR 2011-12 2012-13 2013-14 2014-15 2015-16 (%) Production in OC 397 414 426 459 505 6.20% Production in UG 38 38 36 35 34 -2.74% Total Production 435 452 462 494 539 5.51% Production from Surface 120 156 171 198 234 18.17% Miner Production from Surface Miner as % of

  19. Slide 19: Marketing Strategy

    Marketing Strategy To retain & grow the consumer base through: • Long-term supply contracts (20 year) to power segment (75% of total market) • Medium-term supply contracts (5 year) to non-power segment • Flexible commercial packages as per market requirement • Quality assurance Engaging with new con

  20. Slide 20: Average Sales Realisation per tonne

    Average Sales Realisation per tonne Average Sales Realization (₹ per te) 1443 1472 1463 1475 1418 1410 1357 1187 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 9M 16-17 9M 15-16 Drop in e-auction realization due to sharp reduction in imported coal price leads to reduction in average sales realizati

  21. Slide 21: Low Cost Operations

    Low Cost Operations • COST EFFICIENCY DRIVERS COST PER TONNE (Rs/te) 1120 1108 • CAGR of cost per tonne is 0.76 % as against inflation of 3.14% . Which means cost per 1100 1089 tonne has reduced by 2.38% in real term. 1080 1069 • Bulk of mining operations through opencast mines (OCM). 1060 1048 • 10

  22. Slide 22: High Factor Productivity

    High Factor Productivity • Average cost of production for CIL is USD 16 per tonne @ Rs.68 per USD. This includes high cost of UG coal comprising 6% of production. • UG cost is much higher than OC cost. • Hence, OC cost per unit is at the lower end of the global cost curve. • In other words, the oper

  23. Slide 23: Total Revenue & Net Income

    Total Revenue & Net Income (Rs. Billions) Net Income (₹ Billions) 837 174 807 770 778 700 148 151 143 137 587 608 551 109 100 62 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 9M 16- 9M 15- FY 2011FY 2012FY 2013FY 2014FY 2015FY 2016 9M 16- 9M 15- 17 16 17 16 22

  24. Slide 24: Positive Margins & Returns

    Positive Margins & Returns EPS & EPS Growth 30 27.6 33.5 25 23.5 23.9 21.7 22.6 36 30.9 35.3 30.7 278 20 17.2 CAGR 5.61% 261 257 34.4 247 249 29.2 15 189 177 22.7 10 133 5 0 FY FY FY FY FY FY 2011 2012 2013 2014 2015 2016 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 9M 16- 9M 15- 17 16 EPS Linear

  25. Slide 25: Positive Margins & Returns

    Positive Margins & Returns ROAE (%) 40.1% 39.0% 38.4% 36.8% 33.3% 33.2% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 24

  26. Slide 26: Positive Margins & Returns

    Positive Margins & Returns 29.0 27.4 Dividend Outflow (₹ billions) 183 173 DPS (₹ per share) 20.7 131 10.0 14.0 3.9 63 88 25 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 25

  27. Slide 27: Capital Expenditure

    Capital Expenditure • Capital expenditure in FY 2016 was mainly on account of Land, R&R issues, P&M, Exploration & Mine Development. • In FY 2017, CIL envisages a capital 61 expenditure of Rs.77.65 billions. • Keeping in view the target of 908 Mte in 52 2020, capital investment would have to be 43 4

  28. Slide 28: Organizational Commitment to Sustainable Development

    Organizational Commitment to Sustainable Development  Coal India’s Resettlement & Rehabilitation Policy 2012 provides flexibility to deal effectively with issues Social and determine packages suited to local needs — Policy accords high priority for minimizing disturbance of the local population whi

  29. Slide 29: Sustainable Development

    Sustainable Development • ISO 9001 compliance – 46 units & 2 subsidiaries are entirely compliant • ISO 14001 – 22 units & 2 subsidiaries are entirely compliant. • OHSAS 18001 – Two entire subsidiaries & 5 units are entirely compliant. • CIL HQ has been granted licence of ISO-90001:2015 (Quality Mana

  30. Slide 30: Thank You

    Thank You

Coal India — Non-Deal Roadshow (March 2017) on 6ix