Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2012)
62 slides from Ntpc's investor presentation, Aug 1, 2012
Slide 1: Investor Presentation
. Investor Presentation Presentation by: Sh. A.K. Singhal Director (Finance) 1
Slide 2: Vision and Target
VISION AND TARGET To be the world’s largest and best power producer, powering India’s growth TEXT EXAMPLE 128,000 MW By 2032
Slide 3: Presentation outline
Presentation outline NTPC Journey & Overview Performance Highlights Opportunities Challenges Sustainability initiatives 3
Slide 4: Journey 1975 - Today
NTPC AMaharatna Company cade NTPC AMaharatna Company Cyourney 1975 - Taday
Slide 5: Journey milestones 1975-2003
Year 1990 Year 1997 Navratna Status bestowed 10000 MW Mark Achieved in Installed Capacity Year 2002 Incorporated 20000 in MW Mark Achieved 1975 Year 2003 Commenced Construction of First Plant of 200 MW Hydro Power Project in Commissioned at Singrauli in Koldam 1982
Slide 6: Journey milestones 1997-2003
Year 1997 Navratna Status bestowed Year 2002 20000 MW Mark Achieved Year 2003 Commenced Construction of First Plant of 200 MW Hydro Power Project in Commissioned at Singrauli in Koldam 1982
Slide 7: Journey milestones 1990-2003
Year 1990 Year 1997 Navratna Status bestowed 10000 MW Mark Achieved in Installed Capacity Year 2002 20000 MW Mark Achieved Year 2003 Commenced Construction of Hydro Power Project in Koldam
Slide 8: Journey milestones 2004-2008
2004 2005 Listed on Stock Exchanges Rechristened as ‘NTPC Limited’ 2004 2008 Coal Blocks Allotted Gross Generation (Standalone) exceeded 200 BUs
Slide 9: Journey milestones 2009-2011
2010 •Became ‘Maharatna’ •GoI Disinvestment of 5% paid up capital 2011 2009 Foray into Nuclear Power Capacity crossed with JV formation with NPCIL 30000 MW
Slide 10: Journey milestones 2009-2011
2009 2010 Strategic Leap – Entered into Long Term •Became ‘Maharatna’ Fuel Supply Agreements •GoI Disinvestment of 5% paid with Coal Co.s up capital 2011 Foray into Nuclear Power with JV formation with NPCIL
Slide 11: Journey milestones 2011-2012
2011 2012 First Unit of 660 MW of Sipat •First Foray outside India, a JV in Type your text here. Trincomalee, Type your Sri Lanka for text Power Commissioned here. Plant Type your text here. Type your text •First 800here. MWTypeUnityour text here. Awarded Currently 1980 MW Supercritical Type your •F
Slide 12: Largest Power Generator in India
Today Largest Power Generator in India Group Capacity 39174 MW Produces over 27% of India’s electricity
Slide 13: Energizing India through PAN India Presence
Energizing India through PAN India Presence 240 BUs, 27% 5 Subsidiaries Shareholding & 20 JVs GoI: 84.50% 37014, 637 BUs, FIIs: 3.97% As on 73% DIIs: 7.77% MW Mar 31, 2012 19% Others: 3.76% 162863 MW, 81% Rest of India NTPC Group No. of Installed Capacity Plants 31.03.12 01.08.12 222BUs, 25% 655BUs,
Slide 14: Group NTPC Subsidiaries and Joint Ventures
Group NTPC 5 Subsidiaries and 20 Joint Ventures Equipment Power Generation Services Coal Acquisition Power Trading Manufacturing NTPC Hydro Ltd. (100%)* NTPC Electric Supply NTPC BHEL Power International Coal NTPC Vidyut Vyapar Company Ltd. (100%) Projects Pvt. Ltd. (50%) Ventures Pvt. Ltd. Kanti Bi
Slide 15: Performance Highlights – NTPC
Performance Highlights Three Major Issues – NTPC Before 2011-12 •Fuel Linkages for New Capacities •Financial Status of Distribution Companies •Land Acquisition 15
Slide 16: Presentation outline
Presentation outline NTPC Journey & Overview Performance Highlights Opportunities Challenges Sustainability initiatives 16
Slide 17: Performance Highlights 2011-12
Performance Highlights––2011-12 Performance Highlights 2011-12 •Highest ever capacity of 2820 MW added during the year •Exceeded 11th Plan target of 9220 MW capacity addition by adding 9610 MW •1160 MW brought to commercial operation. First 660 MW supercritical unit commissioned at Sipat •AVF of 88.
Slide 18: Performance Highlights 2012-13 so far
Performance Highlights––2012-13 Performance Highlights 2011-12so far.. • Commissioned 2160 MW capacity (NTPC Group) • 2320 MW declared commercial (NTPC Group) • Higher domestic coal materialisation at 98.3% of ACQ • Profit After Tax increases by 20% Q-o-Q to Rs. 2499 crore. • Total revenue increases
Slide 19: Performance Highlights…growth story
Performance Highlights…growth story Healthy CAGR CAPACITY (Group) GENERATION MW 39174 Billion Units 40000 37014 250 220.54 222.07 34194 200 30000 133.19 20249 150 99.16 20000 16795 100 61.57 58.88 11333 50 20.82 10000 0 3100 0 200 0 (INR Crore) ASSETS 148,635 REVENUE - Sale of Energy 140,838 150000
Slide 20: Sustained PAT, PBT, Net Worth & DPS
Performance Highlights….. Sustained PAT, PBT, Net Worth & DPS INR Crore PAT 9,224 PBT 10000 8,7289,103 INR Crore 8,201 7,415 14000 12,050 12,326 8000 6,865 12000 10,255 10,886 5,8075,820 8,907 9,360 6000 5,261 10000 8000 6,813 6,609 3,5403,608 5,890 4000 2,499 6000 3,7523,754 3,256 2000 4000 2000 0
Slide 21: YOY Profitability
Performance Highlights: YOY Profitability Crore 2011-12 2010-11 Y-O-Y 2012 (Audited) (Audited) 6% 3% 6% 6%3% 2011 Total Income 64,830.65 57,407.30 13% Revenue from 6% 7% Operations (net) 6% 62,052.23 55,062.65 13% Other income 2,778.42 2,344.65 19% Total Expenditure 52,504.49 45,357.70 16% 78% Fuel
Slide 22: Y-o-Y Financials
Performance Highlights: Y-o-Y Financials Crore ` 2011-12 2010-11 Y-O-Y Consistent & High RoCE & RoNW (Audited) (Audited) 16.1 16.7 16.35 16.92 16.88 Gross fixed assets 81,830.26 72,755.15 12% 14.07 14.29 13.97 14.3 14.23 Net block 45,258.36 39,235.96 15% CWIP 41,827.86 35,495.33 18% Investments - No
Slide 23: Financials Q1/2012-13 vs Q1/2011-12
Performance Highlights: Financials Q1/2012-13 Vs Q1/2011-12 Income Statement Position Statement Crore Q1/2012-13 Q1/2011-12 Q1/2012-13 Q1/2011-12 Q-O-Q Q-O-Q (Unaudited) (Unaudited) (Unaudited) (Unaudited) Total Income Gross fixed assets 87779.23 73216.17 20% 16844.89 15167.89 11% Net block 50333.32
Slide 24: Q1 indicators auguring well
Performance Highlights: Q1 indicators auguring well.. Investments on track Capacity Growth (Standalone NTPC) MW ` •Capex of Rs 3978 crore during 20% Growth expected in commercial capacity in FY14E over FY12 Q1 against target of Rs 3967 crore 34810 35810 38028 30830 32650 34810 37118 •Q1 Capex 83% hi
Slide 25: Performance Highlights – Operational
Performance Highlights – Operational Q1 FY13 /Q1FY 12 2011-12 Generation Growth Availability Coal Stations : 88.35% (2010-11 : 91.67%) 7.80% Availability Gas Stations : 93.81% (2010-11 : 92.60%) 6.40% PLF of Coal Stations : 85% (2010-11: 88.29%) All India PLF for coal stations : 73.32% (CEA) Q1/2012
Slide 26: Group Companies Contribution in 2011-12
Group Companies Contribution in 2011-12 Generation Contribution : 18 Bus (excl. 2.7 BUs captive power) Capacity Contribution: 4364 MW, (To reach 7254 MW capacity by FY17E ) Total Investments in JVs (excl PTC) and Subsidiaries: Rs. 4661 crore, 17% increase over PY Total Revenue Contribution to Consol
Slide 27: Steadily increasing Operating Cash Flows
Steadily increasing Operating Cash Flows… …progressively deployed in Generating Assets Crore 13867 13663 2011-12 14000 12002 11085 11510 2010-11 12000 10611 2009-10 10000 8000 6000 4346 2869 4000 2627 1704 1909 1725 995 2000 0 -38 -2000 -1813 Net Operating Inflow from Net Financing Investment in Net
Slide 28: Performance Highlights - Human Capital
Performance Highlights- Human Capital Improving Productivity per employee…. Sales Per Employee Rs.1.56 Rs. 2.54 Up Crs Crs 63% PAT Per Employee Up Rs 0.31 Rs. 0.38 Crs Crs 23% Value Added Per Employee Rs. 0.54 Up Rs. 0.82 53% Crs Crs 8.48 9.25 10% Generation Per Employee MUs MUs Up 9% Down 10% Man M
Slide 29: Presentation outline
Presentation outline NTPC Journey & Overview Performance Highlights Opportunities Challenges Sustainability initiatives 29
Slide 30: Opportunities: The Growth Canvas
Opportunities: The Growth Canvas Energy demand growth closely linked to GDP growth Robust Demand 1403 739 777 831 862 937 Growth Demand to increase by c. 1.5 FY08 FY09 FY10 FY11 FY12 FY17 times by FY17 Real GDP growth 9.30% 6.70% 8.40% 8.40% 6.50% Y-O-Y Demand growth 6.95% 5.14% 6.95% 3.73% 8.72% En
Slide 31: Capacity Expansion in XII Plan
Capacity Expansion in XII Plan Year Project MW Capacity Addition (GW) (excl RES) NTPC FY 13 Sipat 660 75.785 Mauda – II 1000 55.535 54.964 Vindhyachal – IV & V 1000 Rihand – III 500 16.071 14.038 Indira Gandhi STPP JV 500 9.61 Vallur – I, Phase – I & II JV 500 Solar PV (A&N, Dadri) 10 8th+9th+10th P
Slide 32: NTPC - Capacity Addition Plans
NTPC - Capacity Addition Plans Long Term Plan to become 128 GW by 2032 128000 51052 4760 14038 37014 Mar'12 Capacity Under 2017 Other Capacity Under 2032 Construction for 12th Plan Construction for 13th Plan Out of 14038 MW under construction for 12th Plan of which 2160 MW commissioned upto 31.07.12
Slide 33: Financing NTPC's Capex
Financing NTPC’s Capex Capex Schemes Outlay Capex spend (2012-13) (Q1 June’12) Financing of Outlay FY 13 Rs. Crore Rs. Crore On-Going Projects 12751.13 3220.20 Completed Projects 1191.56 67.88 Rs 8219 cr 39% Rs. 10511 cr New Projects 2203.58 299.13 50% Coal Mining 1803.07 41.91 Rs.2265 cr 11% R&M Sc
Slide 34: Globalization
Globalization GLOBALIZATION Geographical diversification fuelling growth Sri Lanka (Trincomalee) 2x250 MW coal based power project in Trincomalee through a JV Co. with Ceylon Electricity Board. Sampur site in Trincomalee region is identified for the project. Feasibility study is in advanced stages.
Slide 35: Presentation outline
Presentation outline NTPC Journey & Overview Performance Highlights Opportunities Challenges Sustainability initiatives 35
Slide 36: Fuel Supply & Requirement Position – Coal
Fuel Supply & Requirement Position– Coal Fuel tie-ups Providing Security • Coal Supply 2011-12 & 2010-11 • Coal Supply Q1/ 2012-13 Source Supply in MMT Source Supply in MMT 2011-12 2010-11 Q1 /FY 13 Q1/ FY12 Domestic 128.99 126.72 Domestic 33.79 30.64 Import 12.00 10.60 Import 2.77 3.34 Total 140.99
Slide 37: 12th Plan Targets and Coal Requirements
12th Plan Targets and Coal Requirements Year 12-13 13-14 14-15 15-16 16-17 Domestic Coal Demand (MMT) 164 187 198 205 218 ACQ Supply (MMT) 119 119 119 119 119 LoA (MMT) 15 22 25 32 38 Supply ACQ+LOA (MMT) 134 141 144 151 157 Captive Mine 0 3 8.5 19.5 37 Supply thru e-auction/MoU (MMT) 3 3 3 3 3 Tota
Slide 38: Ensuring fuel security: Captive coal mines
Ensuring fuel security Captive coal mines Six coal mining blocks allocated to Capex Spend NTPC Pakri Barwadih Total Capex Spend on mines till Q1/ Talaipalli FY 13 Rs. 879.81 Crore Dulanga Kerandari # Chatti Bariatu # Chatti Bariatu South# Target Coal ~37MMT Estimated geological reserves of Productio
Slide 39: Ensuring fuel security: Pakri Barwadih
Ensuring fuel security Development of coal mines Pakri Barwadih Coal Block Environment Clearance obtained. Forest Clearances Stage-I & Stage-II obtained. Mining Area Land Acquisition Notifications are completed. 2536 acres of forest land in possession. Payment disbursed for 605 acres of private land
Slide 40: Ensuring fuel security: Coal block development
Ensuring fuel security Development of coal mines Coal Blocks Particulars Chatti-Bariatu Kerandari Talaipalli Dulanga Environment Obtained Obtained In-principle In-principle Clearance clearance clearance obtained obtained Forest Clearance Stage-I & Stage-II Stage-I clearance Under process Under proce
Slide 41: Ensuring fuel security: Imports & Transportation
Ensuring fuel security Imports & Transportation •4 MMT of imported coal through Direct Tender awarded in 2011-12 •12 MMT of additional coal to be awarded in 2012-13 •Savings of 15% to 23% in coal price from direct award of import contracts •Work in progress for transport of coal to Farakka through i
Slide 42: Ensuring fuel security: Gas Requirement & Supply
Ensuring fuel security Gas Requirement & Supply Gas Consumption during Year 2011-12 & Q1/ 2012-13 Year Nominal Gas Gas consumption MMSCMD Capacity Requirement APM/ PMT/ KG D6 RLNG Total (MW) at 90% PLF Non-APM Q1/ 2012-13 3605* 17.35 9.27 1.21 2.60 13.08 2011-12 3605* 17.35 8.84 1.90 2.35 13.09 * Ex
Slide 43: Ensuring fuel security: Gas Scenario
Ensuring fuel security Gas Scenario Prevailing Delivered Gas price & FCOG at NTPC gas stations : Gas Type Delivered Price FCOG (Rs/ Kwh) ( US $ / MMBtu) APM/ PMT 4.78-5.78 2.15-2.73 Non APM Gas 6.64 3.05-3.10 KG D6 6.44-6.77 2.90-3.20 GAIL Long Term RLNG 13.00-15.72 5.85-7.43 Spot RLNG 18.36-22.54 8
Slide 44: Land Acquisition
Land Acquisition: Recent initiatives Status of Land Acquisition for Bulk Tendering R&R Policy, CSR-CD Policy Project Land Req. Status of Land Acquisition revised (acres) Formulation of Initial Community Development (ICD) Nabinagar 2832 Compensation Disbursement for GoI policy (Pre R&R for image/ (3x
Slide 45: Challenge: Accelerated Capacity Addition
Challenge: Accelerated Capacity Addition Strategy: Multi pronged •Bulk Tendering of 6360 MW already awarded •Tender for 1320 MW on EPC basis floated. Availability of Infrastructure - All clearances/ substantial land commitments in position •Enhanced Delegation of Power for quick decision acquisition
Slide 46: Challenge – Nursing SEBs back to health
Challenge – Nursing SEBs back to health Accumulated Losses of SEBs stand at Rs. 1,79000 crores before subsidy and Rs. 82,000 crore after subsidy for FY 2006 to FY 2010 (Shunglu Comm.) MoP initiatives to ensure sustainable financial Avg. health of SEBs Tariff only 74% Tariff Revision by 24 SERCs for
Slide 47: Challenges: Securing receivables & Off-take
Challenges: Securing receivables & Off-take Realized 100% payment of bills from customers for ninth year in succession Revised Incentive scheme to ensure timely collection of Debtors Collection dues Days* 35 35 NTPC’s billing expected to increase substantially in 5 years – receivables secured throug
Slide 48: Competitive Advantage
Competitive Advantage….. Sustaining its status of low cost power producer Rs./Kwh 4 Average Tariff Fuel Charges Fixed Charges 3.5 2.96 2.94 3 2.63 2.5 2.27 2.12 2.05 2.02 1.84 1.77 2 1.53 1.51 1.5 1.28 0.76 0.86 0.91 0.92 1 0.56 0.59 0.5 0 2007-08 2008-09 2009-10 2010-11 2011-12 Q1/2012-13 Coal base
Slide 49: Fund Mobilization
Fund Mobilization Strategy Capital Structure Equity: New projects financed with Debt equity ratio of 70:30. Internal accruals sufficient to finance equity portion of scheduled investment in NTPC Deployment of equity in Subsidiaries/JVs selectively-preferably with control retention Debt Funding NTPC
Slide 50: Fund Mobilization
Fund Mobilization Strong ratios ensures debt at optimal cost Debt Funding Interest Coverage Ratio 13.64 Cumulative Domestic loan tied up stand at Rs. 56729.35 13.02 10.19 11.42 9.81 crore as on 31.07.2012 Total Available Undrawn amount (Domestic Loans) as FY 08 FY 09 FY 10 FY 11 FY 12 on 31.07.2012
Slide 51: Presentation outline
Presentation outline NTPC Journey & Overview Performance Highlights Opportunities Challenges Sustainability initiatives 51
Slide 52: Challenges of Sustainability
Challenges of Sustainability Scale • Fuel Mix •Environment Sustainable • Competitive •Technology Advantage Comparative •Stakeholders Advantage Resources Sustained Growth can be assured only if we have Long Term Competitive Advantage 52
Slide 53: Renewable & Nuclear Energy
Renewable & Nuclear Energy Reducing Carbon footprints •Basket of 1000MW under development •300 MW being targetted for completion by 2017 Own Basket •Of this 105 MW solar capacity by 2017 •5 MW each at A&N and Dadri in advanced stage of completion •Pan-Asian Renewable Private Limited, JVC to initiall
Slide 54: Environmental Initiatives
Environmental Initiatives More than 33 million tons of CO2 has been avoided in NTPC •Advanced and high efficiency technologies. •NTPC’s Ist Super-Critical unit of 660 MW is declared on Technology choices commercial operation at Sipat-I Power Project •Majority of the coal based capacities planned und
Slide 55: Ash Management
Ash Management Waste Product to Bye-Product 625 million ash bricks Achieved ash utilization of manufactured in pilot ash brick 55.01% during 2011-12 manufacturing plants. Export of Ash from Farakka MoU has been signed with and Rihand stations. Research Designs & Standard Organization (RDSO), Lucknow
Slide 56: Technology progression
Technology progression Increased efficiency and greater environmental protection Leader in introducing new technologies in the power sector Technologies Introduced Technologies under development Development of IGCC suitable for Indian coal High Voltage Direct Current Technology Use of advanced techn
Slide 57: Investing in R&D and technology
Investing in R&D and technology NETRA: 16 Patent Applications filed so far, 1 obtained NTPC Energy Technology Research Alliance Efficiency Improvement New & Renewable Climate Change & Cost reduction Energy Developing waste Developing technologies CO2 In-house development of innovative solar thermal
Slide 58: Extensive engagement with society
Extensive engagement with society Building social capital- Going beyond generation of Power Providing Health Care Skill Creation •Adopted 17 ITIs at different locations •Sponsored around 750 youth from villages in the vicinity of NTPC units for ITI training . •Setting up Solapur Power Training Insti
Slide 59: "Can do it" culture drives excellence
“Can do it” culture drives excellence Ability to attract and retain highly skilled employees o “People First” approach o Strong brand name o Industry leadership position o Wide range of growth opportunities o Focus on long-term professional 2012 development Consistent Independent Recognition of NTPC
Slide 60: Sustainable Growth While being Sensitive to Society
NTPC believes in.. Sustainable Growth While being .. Sensitive to Society 60
Slide 61: Disclaimer
Disclaimer This presentation and the presentation materials distributed herein include forward- looking statements. All statements, other than statements of historical facts, that address activities, events or developments that NTPC Limited expects or anticipates will or may occur in the future (inc
Slide 62: www.ntpc.co.in
iank Yo www.ntpc.co.in