Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2005)
49 slides from Ntpc's investor presentation, Aug 22, 2005
Slide 1: 1st Analysts & Investors Meet
National Thermal Power Corporation Limited Welcomes You to 1st Analysts & Investors Meet 22nd August 2005 Mumbai
Slide 2: A Presentation on National Thermal Power Corporation Limited
A Presentation on National Thermal Power Corporation Limited by Mr. A.K. Singhal Director (Finance), NTPC at 1st Analyst & Investor Meet 22nd August 2005 2
Slide 3: Contents
Contents 1 NTPC’s Business and Strengths 2 Performance Highlights 3 Key Strategies 4 Indian Power Sector 5 Key Challenges 3
Slide 4: NTPC's Business and Strengths
NTPC’s Business and Strengths Nation wide Presence Owns multi fuel and multi location plants Possesses comprehensive In house capabilities in building and operating power plants No of Capacity (MW) plants ( March 2005) NTPC Owned - Coal 13 19,480 - Gas / Liquid Fuel 7 3,955 Total 20 23,435 Owned by
Slide 5: NTPC's Business and Strengths
NTPC’s Business and Strengths Growth in Capacity Growth in Generation & Sales 159.1 24000 23435 160 149.2 140.9 138.0 147.8 130.2 133.2 129.3 23000 120.7 124.5 120 22000 21435 20935 21000 80 19935 20000 19435 41.4 38.5 19000 40 18000 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 Q1-06 Capacity
Slide 6: NTPC Group
NTPC Group Subsidiaries Pipavav Power NTPC Vidyut NTPC Electric Development Co. NTPC Hydro Ltd. Vyapar Nigam Ltd. Supply Co. Ltd. Ltd. Joint Ventures NTPC-SAIL Bhilai Electric NTPC Alstom Utility Power Company Supply Co. Pvt. Power Services Powertech Ltd. Pvt. Ltd. Ltd. Pvt. Ltd. NTPC Ratnagiri Gas
Slide 7: Awards & Accreditations
AWARDS & ACCREDITIONS Golden Peacock Global Award for Excellence in Corporate Governance 2005 ISTD FICCI Award for excellence in HR Practices Greentech Safety Award 2004-05 National Award for excellence in consultancy services. CNBC TV- 18- Hewitt ranked NTPC “Third best employer in India”
Slide 8: Key Competitive Strengths
Key Competitive Strengths Unmatched competitive position High off take security Proven track record in project implementation Proximity to fuel sources High operating efficiency Largest pool of power engineering talent in India Strong financial position 8
Slide 9: Strong Government Support
Strong Government Support Navratna status has given Autonomy in making investment decisions Facilitated Tripartite Agreements for One time settlement of outstanding dues and Future payment security Supported new initiatives Coal Mining Participation in LNG Value Chain Entry into power tr
Slide 10: Contents
Contents 1 NTPC’s business and strengths 2 Performance Highlights 3 Key Strategies 4 Indian Power Sector 5 Key Challenges 10
Slide 11: Performance Highlights
Performance Highlights Physical Performance Financial Performance Commercial Performance Capacity Growth Performance of Subsidiaries and JVs 11
Slide 12: Physical Performance
Physical Performance 90 81.8 83.6 84.4 87.5 – Generation of 159.11 bln 81.1 80 74.8 units in 2004-05 as against 72.1 72.7 69.9 70 69 149.16 bln units in 2003-04 60 – Highest ever PLF of 87.5% 50 in 2004-05 40 – High operational availability 30 of 91.2% 20 – 1st Qtr 2005-06 PLF was 10 87.31% (coal) a
Slide 13: Financial Performance - Profit & Loss Statements
Financial Performance - Profit & Loss Statements Rs. Mln. Fiscal 1st Quarter Ending June 2004 2005 2004 2005 Total income 259,642 255,460 57,296 66,095 Sales 188,684 225,650 51,913 60,567 Other income 70,958 29,810 5,383 5,528 Total expenditure 200,745 194,678 46,188 52,371 Fuel 122,150 137,235 31,8
Slide 14: Financial Performance contd - Balance Sheets
Financial Performance .. contd Balance Sheets Rs. Mln. As on 31.03.2004 31.03.2005 Gross fixed assets 400,281 431,062 Net block 212,545 223,148 Investments 173,380 207,977 Current assets, loans and advances 135,468 129,073 Liabilities and provisions 240,845 241,720 Secured loans 45,844 44,407 Unsecu
Slide 15: Dividend & Growth
Dividend & Growth Dividend (Rs.Mln) 25000 19790 20000 15000 10823 10000 7470 7079 7080 6500 5000 0 2000 2001 2002 2003 2004 2005 Highest ever dividend for fiscal 2005 @ 24%, considering final dividend recommended by the Board of Directors of Rs. 9895 Million The company would continue to balance gro
Slide 16: Financial Position
Financial Position Debt Equity Ratio of 0.41:1 as on 31.03.2005 Capacity Expansion Plan has captured the leveraging advantage – Net cash flow of INR 50.47 bln generated from operating activities in FY 2004-05 – Leveraging Borrowing with a Debt Equity ratio of 70 : 30 – Domestic Bonds Rated AAA b
Slide 17: Commercial Performance
Commercial Performance 100% realization in the FY 2004-05 of the amounts billed to the customers Same trend continues in the first quarter of 2005-06 Letters of Credits to the extent of 105% of average monthly billing established by all customers Timely Servicing of Bonds under One-time-sett
Slide 18: Capacity Growth
Capacity Growth Capacities Added Fiscal’ 05 Capacity (MW) 23435 Talcher 500 MW 24000 Talcher 500 MW Ramagundam 500 MW 21435 Rihand 500 MW 20935 New Starts 21000 19935 19435 Sipat I 1980 MW Barh 1980 MW Bhilai ( JV ) 500 MW 18000 2001 2002 2003 2004 2005 Under Construction 9470 MW * * Including New S
Slide 19: Human Resources - The Performer
Human Resources- The Performer The Best Employer in India for the year 2004 ranking 3rd for the second consecutive year (survey by Hewitt’s Associates and CNBC TV 18) Third Great Place to work for in India for the year 2004 in a survey conducted by Grow Talent and Business World 23,385 highly trai
Slide 20: Our Subsidiaries
Our Subsidiaries 1. NTPC Vidyut Vyapar Nigam (NVVN) , a wholly owned subsidiary has been set up with an objective of trading in power, to effectively use the installed capacity and reduction in the cost of power . NTPC has invested Rs. 200 million in the equity share capital of the company . ( Rs. M
Slide 21: Our Subsidiaries
Our Subsidiaries 3. NTPC Electric Supply Company Limited (NESCL) , a wholly owned subsidiary has been set up for taking up electricity distribution business as a sequel to reforms initiated in the power sector and company is looking at opportunities to take up distribution circles. The company has t
Slide 22: Our Joint Ventures
Our Joint Ventures ( Rs. Mln) 1. NTPC-SAIL Power Supply Particulars 2004-05 2003-04 Company Ltd has been Gross Income 1322 1550 formed as a joint venture with SAIL with 50% stake, owning Profit After tax 233 240 and operating 2 power NTPC’s Investment 587 587 projects of 120 MW each. Dividend 160 16
Slide 23: Our Joint Ventures
Our Joint Ventures ( Rs. Mln) 3. NTPC-Alstom Power Services Particulars 2004-05 2003-04 Limited in partnership with Gross Income 1021 1078 ALSTOM with 50% stake has been promoted to undertake Profit After tax 21 23 R&M jobs of under performing NTPC’s Investment 30 30 stations Dividend 6 3 4. Utility
Slide 24: Our Joint Ventures
Our Joint Ventures 5. NTPC Tamilnadu Energy Company Ltd has been formed as a joint venture with Tamil Nadu Electricity Board with 50% stake, to construct and operate a plant of 1000 MW in the state 6. PTC India Limited was promoted with 8% stake each from NTPC, PGCIL, PFC and NHPC for trading of pow
Slide 25: Contents
Contents 1 NTPC’s business and strengths 2 Performance Highlights 3 Key Strategies 4 Indian Power Sector 5 Key Challenges 25
Slide 26: Key Strategies
Key Strategies Maintain sector leadership position through rapid capacity expansion Further enhance fuel security Exploit new business opportunities Other Initiatives 26
Slide 27: Strategy to Maintain Leadership Position
Strategy to Maintain Leadership Position Coal Mining Participating Rapid Distribution In the LNG Capacity & Value chain addition 30,000 MW by 2007 Trading 46,000 MW by 2012 Integrated Project Development Progress in Hydro Capacity addition R&D Initiatives in Diversified 27 Fuel sources
Slide 28: Rapid Capacity Addition Program
Rapid Capacity Addition Program X Plan XI Plan Plan 9160 MW Present Plan 17000 MW Added 3500 MW Under Construction 4210MW Under Constn 5260 MW Under Evaluation* 1450 MW Under Evaluation* 1150 MW Total 9160 MW Other Projects 10590 MW Total 17000 MW Earlier Plan 11558 MW *Kawas II & Gandhar II – 1300
Slide 29: Further Enhance Fuel Security
Further Enhance Fuel Security Coal Availability – Current Scenario CEA Target Recd 100 87 92 94 Supplies are enough to 80 71 72 76 78 79 81 generate as per targets 65 set by CEA, Mill Ton 60 40 24 Additional requirements 20 23 are met through import 0 '01 '02 '03 '04 '05 Q1-06 PLF of 87.5% in fis
Slide 30: Further Enhance Fuel Security - Strategies for Coal
Further Enhance Fuel Security Strategies For Coal Short Term Measures Import of Coal to meet shortages as an immediate measure – Import of 2.1 MT through MMTC, supplies commenced – Import of 1.9 MT through STC being tied-up The overall impact on fuel cost is insignificant and the same is pass-
Slide 31: Further Enhance Fuel Security - Long Term Measures
Further Enhance Fuel Security Long Term Measures NTPC has initiated advance actions to enter into coal mining and applied for additional 15 mining blocks Ministry of power has recommended allocation of 4 blocks on priority basis to NTPC for development of integrated projects Coal extraction fro
Slide 32: Further Enhance Fuel Security - Strategies for Gas
Further Enhance Fuel Security Strategies For Gas Historically Gas has been in short supply in India, NTPC’s gas stations have been operating at Low PLF Short Term Measures To augment existing supplies additional gas from Panna- Mukta-Tapti gas fields have been tied up As a result gas supplies
Slide 33: Further Enhance Fuel Security - Long Term Measures
Further Enhance Fuel Security Long Term Measures Acquiring acreage in domestic gas fields – NTPC has participated in bid process for blocks on offer under NELP- V Participation in various elements of LNG value chain including – Gas Exploration and production – Participation in Gas Liquefaction
Slide 34: Further Enhance Fuel Security - Fuel Mix
Further Enhance Fuel Security - Fuel Mix Diversifying fuel mix by setting up hydro-power plants – both big and small Projects Under Development NTPC will continue to Koldam Hydro 800 MW identify more Hydel projects for development Tapovan –Vishnugarh 520 MW Loharinag Pala 600 MW NTPC has also
Slide 35: Further Enhance Fuel Security - Fuel Mix
Further Enhance Fuel Security - Fuel Mix Capacity Mix - existing Capacity Mix - 2012 (23749 MW) (46742 MW) 314 MW 2314 MW 5133 MW 5% 3955 MW 1% 11% 17% 8505 MW 18% 30790MW 19480 MW 66% 82% Coal Gas JV (Coal) Coal Gas Hydro JV (Coal) Efforts to change the fuel-mix of installed capacity gradually 35
Slide 36: Exploit New Business Opportunities
Exploit New Business Opportunities Regulatory and economic reforms have thrown new business opportunities Forward and Backward integration across energy chain Diversifying fuel mix by setting up hydro-power plants Exploring various options for setting up of Merchant Plants Commenced power tr
Slide 37: Other Initiatives - Technology
Other Initiatives Technology Initiatives Launch of Energy Technology Center -A new initiative for development of technologies with focus on fundamental R&D Plans to develop coal based thermal power projects with Super- Critical Technology with higher unit size machines having higher efficiency a
Slide 38: Other Initiatives
Other initiatives Taken up Distributed Generation (DG) for rural electrification Implementing APDRP in various Circles and advising SEBs Steps taken to establish “Power Exchange” in the country Advising SEBs on Efficiency improvements and also engaged in R & M 38
Slide 39: Other Initiatives - Corporate Governance
Other Initiatives Corporate Governance Board and Sub-committees of Board including Audit Committee and Governance Committee (Committee on Management Control) Well defined Delegation of Power Engineering & Project Management Systems Contract Systems Financial Systems having Internal checks
Slide 40: Other Initiatives - Corporate Social Responsibility
Other Initiatives Corporation Social Responsibility As a responsible corporate citizen NTPC has taken up number of CSR initiatives NTPC Foundation formed to address Social issues at national level . NTPC has framed Corporate Social Responsibility Guidelines committing up to 0.5% of net profit
Slide 41: Contents
Contents 1 NTPC’s business and strengths 2 Performance Highlights 3 Key Strategies 4 Indian Power Sector 5 Key Challenges 41
Slide 42: Indian Power Sector - An Overview
Indian Power Sector – An Overview 42
Slide 43: India - a Supply Deficit Power Market
India - a Supply Deficit Power Market 591 600 559 580 546 7.3% 560 523 7.1% 540 8.8% 548 507 520 7.5% 519 500 7.8% 498 480 483 All figures are in bn units, except where stated otherwise 467 Source: Annual Report, Ministry of Power, 2002-2003, CEA 460 Executive Summary and CEA Annual Report 440 2001
Slide 44: High Potential for Growth
High potential for Growth World avg. 2361 USA 13241 Australia 11205 UK 6631 Brazil 2122 China 1139 Egypt 1129 Per capita energy consumption in kwh (CY 2001) India 561 Source: UN Development Program, Human Development Indicators, 2004 44
Slide 45: Generation Capacity: Current & Proposed
Generation Capacity: Current & Proposed Proposed Capacity Addition (Tenth Plan) Central State Private Total Thermal 12,790 6,676 5,951 25,417 Hydro 8,742 4,481 1,170 14,393 Nuclear 1,300 -- -- 1,300 Total 22,832 11,157 7,121 41,110 Source: CEA Executive Summary, March 2004 240,000 Generation Capacit
Slide 46: Contents
Contents 1 NTPC’s business and strengths 2 Performance Highlights 3 Key Strategies 4 Indian Power Sector 5 Key Challenges 46
Slide 47: Key Challenges
Key Challenges Availability of fuel at competitive prices Various short, medium and long-term measures to mitigate the risk Delay in development of some linked coal mines causing concern on coal supplies Availability of Gas Health of Customers Payment discipline arising out of tri-partit
Slide 48: Key Challenges
Key Challenges Regulatory Risk Regulator is expected to ensure reasonability of returns and continue to incentivise efficient operations Draft National Tariff Policy is indicative of continuing with a regime of reasonable return for all the utilities in the sector Competition Indian Power
Slide 49: Power Producer of International Repute
Power Producer of International Repute The largest Indian power utility, NTPC has a vision to be one of the world’s largest and best power utilities, powering India’s growth DISCLAIMER The information contained in this document relating to projections and estimates are forward looking statements bas