Cesc Ltd · NSE:CESC
Cesc — Investor Presentation (November 2021)
60 slides from Cesc's investor presentation, Nov 21, 2021
Slide 1: Intimation of Investors' Presentation (exchange cover letter)
RP- Sanjiv Goenka Group Growi ng Legacies En111isln1 lhn • Sine• 1899 DOC:SEC:180/2021-22/180 21 November, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, G- Block, Bandra – Kurla Complex, Dalal Street, Bandra (East), Mumb
Slide 2: CESC Limited - Powering India since 1899
CESC Limited Powering India since 1899 November 2021
Slide 3: Disclaimer
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 invitation or inducement to sell or iss
Slide 4: Agenda
Agenda : Power Distribution 1 Indian Power Sector 5 Decarbonization 2 Overview of CESC 6 Decentralization 3 Digitalization 7 Why CESC ? 4 Deregulation
Slide 5: Indian Power Sector
1 Indian Power Sector
Slide 6: Indian power sector is one of the most promising markets
Indian power sector is one of the most promising market 3rd largest Key Milestones 100% FDI is 01 producer & 2nd largest consumer allowed under the automatic route in 04 Power deficit to Power Surplus globally the power sector (85GW in 1997 - 370GW 2020) Growing population Electrification of with su
Slide 7: Growth drivers Electrifying the Future
Growth drivers Electrifying the Future Peak Demand Rural electrification growth @ 7 % CAGR 26 million newly electrified from FY 18 Rapid urbanization households added under 270 million people are expected Saubhagya 1 to join urban population by 2040 8 2 Growth in Infrastructure Increase demand varia
Slide 8: CESC - Integrated Electricity Utility
4 2 CESC - Integrated Electricity Utility
Slide 9: CESC's Pan-India presence
CESC’s PAN-INDIA presence Significant presence across States Chandigarh (BBGS & SGS) *Emerged highest bidder to acquire 100% stake in Chandigarh Discom
Slide 10: Pan India distribution footprints
Pan India distribution footprints Rajasthan (KOTA, Kolkata Noida Malegaon Chandigarh* Total# Bharatpur, Bikaner) Licensee Licensee Input based Input based Licensee Contract Model Model franchisee franchisee Model Area 567 sq. km 335 sq. km 381 sq. km 1340 sq. 57 sq. km 114 sq. km km Consumer 41.1 34
Slide 11: Four drivers re-shaping the energy landscape
Four drivers re-shaping the energy landscape D Digitalization D Deregulation Create greater values across Higher opportunities for operational business units, Expanding Distribution enhance Customer ENERGY footprint on Pan India basis Experience and accelerate innovations. TRANSFORMATION 4D’s D D De
Slide 12: Digitalization & Technology
Intelligent Grid 3 Digitalization & Automation Technology Customer Experience (CX) Applied for 9 nos. Technology Patents
Slide 13: Intelligent Grid
3a Intelligent Grid Cutting Edge Technologies transforming to Intelligent Grid
Slide 14: Industry 4.0 adoption in Operations
Industry 4.0 adoption in Operations IoT Sensors for Cloud Harnessing the power Blockchain Real-time adoption to of AR / VR / MR for P2P Energy monitoring of Grid accelerate IT faster response time Trading modernization Fueling utility State of the art IT Deriving Efficiency Mobility innovation throu
Slide 15: IoT Sensors: Preventive to Predictive Maintenance
IoT Sensors : Preventive to Predictive Maintenance Focusing on Zero Downtime for further enhancement of Operational Efficiency
Slide 16: Big Data Analytics & AI / ML
Big Data Analytics & AI / ML AI & ML Cloud- Big Data Analytics • Predictive Analytics on Asset Heath & • Harnessing Smart Meter Data - Feeder failure Identification of Tariff Mismatch, Fixed Charge Recovery, Real time T&D loss profile • Identification & Prioritization of LV Profile management • Cape
Slide 17: New Cossipore S/S - Walkthrough Experience
Virtual Reality New Cossipore S/S- Walkthrough Experience
Slide 18: Smart Solutions for Sustainable Loss reduction
Smart Solutions for Sustainable Loss reduction Smart Meter application : (ARSTPS) for Sustained Anti-theft PB at T&D Loss Reduction Garden Reach Co-axial Cable at Kamarhati 1 Real-time monitoring of Theft prone area Automated disconnection of Service in the event of 2 hooking / direct supply Remote
Slide 19: Cyber Security: Mitigating Critical Infrastructure Risk
Cyber Security : Mitigating Critical Infrastructure Risk Cyber security & • CII (Critical Information Infrastructure) identification, preparation and strategy submission to NCIIPC for approval - Done • CCMP (Cyber Crisis Management Plan) -preparation and submission to CERT-D/CERT-In – Done • ICT/OT
Slide 20: Automation
3b Automation Enhancing Operational Efficiency & Optimizing Cost through Automation
Slide 21: RPA: Bots for Automation of Manual Processes
RPA : Bots for Automation of Manual Processes “Intelligent process automation: The engine at the core of the next-generation operating model” New Connection Process Emergency Depot – (POC successful, full 1 2 Complaint Handling (POC 3 End to End Automation scale implementation in- in-progress) (futu
Slide 22: Intelligent Outage management
Intelligent Outage management 1 2 SMS sent to Smart meter Consumer Complaints consumer with / Automated @ 1912 Complaint management expected Outage Alert 24X7 Available system restoration time 3 Informed & 24 X 7 Surveillance Feedback Monitoring & Control collected 6 Supply Restored 5 Navigation to
Slide 23: Enhancing Customer Experience (CX)
3c Enhancing Customer Experience (CX)
Slide 24: Digital Customer Services
Digital Customer Services Digital Office CESC Mobile APP WhatsApp Bot 24X7 Call Center Chatbot - Ebuddy Social Media (Sentiment Analysis) Plethora of Digital One Stop Solution Provide superior State-of-the-art Leveraging AI/ ML FB, Twitter, services at Online Payment, Customer IVRS, Auto techniques
Slide 25: Value added Services for Premium Consumers
Value added Services for Premium Consumers Key Account Managers (KAM) provides personalized value-added services for enhanced Customer Centricity - 12K Consumers Green Channel Free Condition for Faster Monitoring Restoration Services Digital SPOC for New/ services on Prospective Website Consumer Dai
Slide 26: Deregulation
4 Deregulation
Slide 27: Opportunities to increase Distribution footprints
Opportunities to increase Distribution footprints Power Competitive Empowering Procurement Landscape Customers One Nation : One Grid : Distribution One Frequency De-licensing Electricity (Rights of & One Price The Electricity Consumer) Rules 2020 ( Amendment ) Bill, Direction towards Smart 2021 Mete
Slide 28: Ease of Doing Business (EODB)
Ease of Doing Business (EODB) Ease of doing business Ease of getting Electricity 22nd 99th Quantum leap 2015 2020 2020 India jumped from 100th in 2017 to 63rd rank in Getting electricity rank improved with 2020 in World Bank’s EODB Ranking reduced time and cost taken to get a power connection in met
Slide 29: De-licensing Power Distribution - A Game Changer
De-licensing Power Distribution – A Game Changer Two or more Use its own Universal License is no Distribution distribution service longer required Companies may system or of obligation fund to distribute distribute another to be created for electricity electricity in the Distribution cross-subsidy s
Slide 30: CESC uniquely placed to exploit De-licensing opportunities
CESC uniquely placed to exploit De-licensing opportunities for Inorganic Growth A fully integrated Power utility Cutting-edge disruptive with rich experience as a Technologies & Automation Licensee and managing DFs for delivering higher Operational Efficiency at Lower Cost to Serve Established stren
Slide 31: Decarbonisation
5 Decarbonisation
Slide 32: Sustainability our Core Value
Sustainability our Core Value CESC has embarked on #LiveFreeBreatheFree journey, to effectively contribute in creating a positive societal impact by reinforcing its commitment towards realization of Sustainability as one of its core values in serving Humanity, through use of clean, affordable and sa
Slide 33: Increasing RE penetration
Increasing RE penetration Adoption of Renewables have been considered as one the key strategies to control Greenhouse gas emissions RE capacity Target (GW) • As of August 2021, India had 100.68 GW of renewable energy capacity, 500 which accounts for 25.2% of the overall installed power capacity. • T
Slide 34: Battery Energy Storage System (BESS)
Battery Energy Storage System (BESS) Need for BESS BESS: Rating 315 kWh, Max. Pwr : 125 KVA Peak Enhancing Decentralised Essential demand flexibility of solution during for RE flattening the system grid outage integration 1 East Calcutta Substation (near Kakurgachi) Deliverables Future Plans: Grid S
Slide 35: Electric Vehicle (EV): Reducing Carbon footprint
Electric Vehicle (EV) : Reducing Carbon footprint Creation of EV Charging Subscribing to technology driven Infrastructure: Public Charging electric bike rental platform*** stations** for in-house mobility Procurement of EV for in-house usage Need of the hour : Changes in building rules to ensure Par
Slide 36: Electric Cooking: Reducing Carbon footprint
Electric Cooking : Reducing Carbon footprint Electric Cooking: is Awareness Campaign in Working with KMC Clean, Safe & Societies, Educational to convert Road Affordable Institutions, Clubs, Malls, side Eateries 67 Restaurants converted to Partnering with Org. like Street Food Festival in Electric Co
Slide 37: CESC - Green Buildings
aed 4 es * . RP- Sanjiv Goenka a C =. 0 mia ic SY) cietes Chakmir Substation (CESC Ltd) - First Substation to be certified as ”IGBC Platinum” under O&M Category in Jan 2018 HEL Admin Building - Certified “IGBC Platinum” green building under O&M category in Jan 2018 RPSG House — To be certified as “L
Slide 38: Decentralization
6 Decentralization
Slide 39: Blockchain & Microgrid
Blockchain & Microgrid Demand Side Management solutions and Peer to Peer (P2P) energy transfer, leveraging Blockchain technology in association with IIM Ahmedabad. Empowers the Discoms to operate as DSO (Distribution System Operator) / Aggregator CESC is working on developing a Microgrid (along with
Slide 40: CESC Awards
CESC Awards 34th Annual Chapter on CII -IQ 9th Excellence Practice Competition "A K DASGUPTA Quality Concept, CCQC 2021 Memorial Trophy" for 2021 Organised by QCFI, Gold award in "Power" Organisational Kolkata Chapter sector in the category Excellence at the "Business Global Summit on Transformation
Slide 41: CESC is an excellent opportunity to Invest
CESC is an excellent opportunity to Invest : Leading player to dominate Distribution Business 1 Proven track-record of profitable operations and domain expertise Responsible business – long standing relationship with stakeholders (Investors, 2 Regulators, Customers, Employees, Value chain partners)
Slide 42: Video (abridged version): Journey of CESC
Video (abridged version) : Journey of CESC
Slide 43: CESC Thermal Generation Assets
CESC Thermal Generation Assets Thermal CESC’s Generation 2,125 Footprint
Slide 44: Expectation vs Positioning
Expectation vs Positioning Role of Thermal CESC Fitment • Be environmentally responsible • Legacy of streamlined process • Improve on efficiency • Best-in-class assets of the • Accommodate intermittent RE Country • Primary source for Grid Stability • Social & Environmental inclusion • Continue cater
Slide 45: Enablers for Thermal Generation
Enablers for Thermal Generation Continue to be the mainstream Flexible Asset stream for the country due to limited Hydro Aged inefficient Thermals to retire leaving space for efficient assets to play major role Additional incentive for Flexibilisation & Ancillary Services Remain the mainstay energy
Slide 46: Power Generation
Power Generation Plant Capacity Offtake Arrangement Fuel Security • CIL Linkage BBGS 750 MW • Coal Mine • E-auction Integrated generation for Kolkata Distribution SGS 135 MW • CIL Linkage Crescent • Coal Washery 40 MW • Short Term Supply - Competitive Power Rejects • 100% Long term PPA - Kolkata • C
Slide 47: Power Generation
Power Generation Stations Assured Post Tax Budge Budge- BBGS Cumulative Equity Return (3x250MW) Capacity 15.5% on Southern- SGS 885MW Normative Equity (2x67.5MW) BBGS - Best among Budge Budge- BBGS (3x250MW) TPPs commissioned BBGS ranked Fuel security with before 2008 in India among top thermal capt
Slide 48: Power Generation
Power Generation 600 MW Haldia Thermal Power Project 600 MW Chandrapur Thermal Power Project Crescent Power • Generating Station: 2x300 MW • Generating Station: 40 Thermal Power Plant • First Independent Power Plant of MW AFBC based power plant • Entire capacity to CESC (Kolkata) - CESC PPA approved
Slide 49: Build Sustainability through Technology Adoption
Build Sustainability through Technology Adoption Online Stack Monitoring IOT Based Sensors with Digital Display Ash utilization – Bricks / Roads QR Code based Paperless Documentation Data High-way for Digital Endeavour Pipe inspection with Robotic Car - Home Made | RPSG Group Presentation
Slide 50: Remote Monitoring Solution
Remote Monitoring Solution Core Elements
Slide 51: Engineering Marvel - A legacy over Decades
Engineering Marvel – A legacy over Decades First 132KV Gas Filled cables (imported from BICC, 236 m height 400kV with a span of 1.5 km UK) commissioned linking Howrah & Kolkata Twin Transmission towers installed on river at Haldia for River-crossing line between 2x300 MW station of HEL & PGCIL Subha
Slide 52: Clean Development Mechanism Project
Clean Development Mechanism Project Introduction of All Volatile Treatment Achieving ZERO Blowdown from Boiler & Reduction of Boiler Efficiency Loss Furnace Draft Logic Modification Reduction of Throttle loss of IGV in ID Fan BBGS is the Globally FIRST Thermal Power plant to register this project wi
Slide 53: ESG - Steady Progress through Green Interventions
ESG - Steady Progress through Green Interventions Leadership in Green Buildings Steady decrease of Emission Intensity in all our generation Water and Effluents stations from FY 17-18 to FY 19-20 CESC facilities and infrastructure follow green building CESC maintains specific water consumption levels
Slide 54: Inclusive Growth
Built Sustainability through Bio-Diversity INCLUSIVE GROWTH Herbal plant garden Butterfly garden Automatic kitchen & garden waste Vegetable cultivation on ash composter bed | RPSG Group Presentation
Slide 55: ESG - Focus on Employee and Community Welfare
ESG - Focus on Employee and Community Welfare CESC-’An Employer of Choice’ Building a Safety Culture Strengthening our Communities CESC creates safety awareness amongst its CESC believes that strong communities are employees. All categories of employees including the the underpinning of a successful
Slide 56: Awards & Recognitions
Awards & Recognitions BBGS won 9th FICCI Safety System Excellence Award- Gold BBGS won ICC Innovation Award on DIL won GREENTECH Prevention Strategy for 8TH CSR INDIA Covid-19 at AWARD - 2021 Workplaces ( Gold Award ) Recent Recognitions DIL won Gold Award Grow HEL won FICCI Care India 4th Annual Qu
Slide 57: Financial Performance of key subsidiaries
Financial Performance of key subsidiaries Rs. crore Rs. crore Revenue PAT Revenue PAT PAT PAT FY`20-21 FY`20-21 FY`19-20 FY`19-20 HY 1 -FY`22 HY 1 -FY`21 CESC Ltd 11874 1363 11217 1306 620 596 (Consolidated) CESC Ltd 7101 814 7982 918 373 362 (Standalone) Haldia Energy Ltd 2192 361 2289 318 190 195
Slide 58: Standalone Performance
Standalone Performance Sales (MU) Revenue (Rs. bn) 10387 10403 10290 9549 9034 9446 9121 74 79 79 80 8443 8651 8733 69 71 62 54 56 48 FY'12FY'13FY'14FY'15FY'16FY'17FY'18FY'19FY'20FY'21 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Including power export Distribution Loss (%) Debt Equit
Slide 59: Consolidated Performance
Consolidated Performance Revenue (Rs bn) PBT (Rs bn) 124 142 119 112 17.52 103 105 109 112 15.72 16.69 13.54 77 11.90 60 10.42 6.57 7.58 3.94 4.98 FY`12FY`13FY`14FY`15FY`16FY`17FY`18FY`19FY`20FY`21 FY`12 FY`13 FY`14 FY`15 FY`16 FY`17 FY`18 FY`19 FY`20 FY`21 Demerger of non-power business effective O
Slide 60: Thank You!
LiMITed Thank You!