Ntpc Limited · NSE:NTPC
Ntpc — Investor Presentation (August 2016)
41 slides from Ntpc's investor presentation, Aug 1, 2016
Slide 1: Investor Presentation 2016
Slide 2: NTPC: Vision and Core Values
NTPC: Vision and Core Values To be the world’s largest and best power producer, powering India’s growth Core Values BE-COMMITTED 2
Slide 3: Outline
Outline An Overview Financial Highlights Operations Highlights Realigning in Changing Business Environment Technological Progression Risks & Mitigation Sustainability Initiatives NTPC,3Unchahar
Slide 4: NTPC- A Powerful Maharatna
NTPC- A Powerful Maharatna With 15% of India’s total installed Leading Generator for > 2 decades Operational Excellence capacity NTPC Group contributed Highest ever gross generation of 241.98 24% to All India generation during Total installed capacity of 47,228 MW FY 16. BUs (standalone)-NTPC Group
Slide 5: NTPC Group: Pan India Presence
NTPC Group: Pan India Presence Share of Installed Capacity Share of Electricity Generated (*as on June 30,2016) (during Q1 FY17) 24% Koldam 15% Dadri (817MW) (800MW) Dadri SolarPV (5MW) Faridabad (430MW +5MW Solar) Lata Tapovan (171MW) Tapovan Vishnugad (520MW) Badarpur (705MW) Jhajjar (1,500MW) NCT
Slide 6: NTPC Group - Subsidiaries and Joint Ventures
NTPC Group - Subsidiaries and Joint Ventures NTPC has set up 5 Subsidiaries and 22 Joint Ventures to pursue its growth objectives on the foundation of Strong Financials Power Generation Services Equipment Manufacturing Out of the 27 group NTPC companies, 12 are Strong Kanti Kanti Bijlee Bijlee Utpad
Slide 7: What We Promised … Is what we delivered in FY16
What We Promised … Is what we delivered in FY16 Actual Performance Against Commitments Made to Investors for FY16 Guidance Performance Target PAF (Coal)(FY16) : To achieve PAF (Coal) : All stations achieved CERC norms of PAF (DC) except Farakka & 1 CERC norms Badarpur Commissioning of capacity 2255
Slide 8: Financial Highlights
Financial Highlights 8
Slide 9: Financial Highlights ... 2015-16
Financial Highlights ... 2015-16 Assets Growth Year FY16 FY15 %Change 175 16% CAGR FY12 FY13 FY14 Key P&L Highlights 150 125 FY15 FY16 Total Revenue 71,696 75,337 -4.83% Rs.Thousands crore 100 75 Profit Before Tax 10,059 10,547 -4.63% 50 25 14% CAGR Profit After Tax 10,243 10,291 -0.47% - Fixed Asse
Slide 10: Key Financial Highlights
Key 5 year Financial Highlights Rs. crore Core Income Particulars 2015-16 2014-15 2013-14 2012-13 2011-12 grew by over 5% Operating Income 70,507 73,237 72,019 65,674 62,052 (YoY) after two Other Income 1,189 2,100 2,689 3,102 2,778 years. Total Income 71,696 75,337 74,708 68,776 64,830 EBITDA 18,70
Slide 11: Robust Financials- Proven All round Track Record
Robust Financials- Proven All round Track Record Capacity (NTPC Group) * Generation (NTPC Standalone) MW 46653 Units in Billion 44398 41184 34194 233.28 241.26 241.98 232.03 20249 133.19 16795 99.16 11333 61.57 20.82 3100 0.00 200 FY82 FY87 FY92 FY97 FY02 FY11 FY13 FY15 FY16 FY82 FY87 FY92 FY97 FY02
Slide 12: Robust Financials- Proven All round Track Record
Robust Financials- Proven All round Track Record Total Debt and Capitalization1 Debt/Equity1 Rs. crore 1.05x 1.03x 1,80,592 1,67,653 1,52,986 0.78x 1,38,534 0.72x 1,23,571 0.64x 0.69x 1,11,080 85,995 91,810 67,170 50,279 58,146 43,188 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 11 FY 12 FY 13 FY14 FY15 F
Slide 13: Operations Highlights
NTPC, Talcher Kaniha Operations Highlights 13
Slide 14: Highly Efficient Plant Operations
Highly Efficient Plant Operations Consistently maintaining spread of 15%-16% over the last 2 Standalone and Group Generation during last 2 decades (in BUs) decades on All-India level. Contribution from Group Companies in total generation has increased 10 fold from the beginning of 10th Plan. 263.42
Slide 15: Creating New Records in Generation….Partnering SUs under UDAY
Creating New Records in Generation….Partnering SUs under UDAY Achieved highest ever quarterly generation-Q1 /FY17 12% Growth in Generation Q/Q 80 NTPC has achieved highest ever quarterly generation 71.50 of 64.56 BU during Q1 of FY17 surpassing previous 70 64.56 highest of 63.16 BU achieved in Q1 of
Slide 16: Sustaining its Status of Competitive Cost Power Producer
Sustaining its Status of Competitive Cost Power Producer Rs./kWh 3.30 Tariffs based on Regulations notified by CERC. Regulatory 3.28 3.18 mechanism assures Returns balancing Risk -reward Ratio. 2.96 2.96 PPAs have been signed for all operating and under 2.63 construction projects 2.05 2.10 2.15 Poli
Slide 17: “Can do it” culture drives excellence
“Can do it”” culture drives excellence Sales per Value Added Profit per Man: MW Executives employee has per employee employee Ratio has Attrition Rate OUR HR grown from has gone up has grown improved 1.04% in FY16 VISION Rs.2.70 crore from Rs.0.82 from Rs.0.38 from 0.74 in to Rs. 3.31 cr in FY12 to
Slide 18: Realigning in Changing Business Environment
Realigning in Changing Business Environment Changing Power Sector Scenario Growth Drivers for Sustained Growth Growth Trajectory of NTPC Why to Invest in NTPC Moving towards Green Energy… NTPC RE Plan in Sync with National Plan Active Support of GoI …Regulatory Interventions Long-Term Fuel Security
Slide 19: Changing Power Sector Scenario
Changing Power Sector Scenario Today Target Installed Capacity ~303 GW ~ 401 GW by FY20 Generation (in BUs) ~1107 BUs ~1582 BUs by FY20 Peak Load Demand ~153 GW ~220 GW by FY20 ~ 3026 kWh Per capita consumption ~ 1075 kWh (World average) Renewable capacity ~43 GW 175 GW by FY22 Coal production ~650
Slide 20: Growth Drivers for Sustained growth …
Growth Drivers for Sustained growth … GDP Growth to increase Per Capita Energy Deficit Scenario Continues..1 Consumption (BU’s) % Energy Deficit Demand for energy grows in tandem with the growth of 9.21% 9.57% 4.38% 3.69% 2.11% the economy. 996 1,002 1,069 1,031 1,114 1,091 GDP of India is growing a
Slide 21: Growth Trajectory of NTPC...poised to be 128 GW company by 2032
NTPC, Koldam Growth Trajectory of NTPC...poised to be 128 GW company by 2032 NTPC, Bongaigaon 21
Slide 22: Growth Trajectory.. slated to add ~36% of country’s new coal capacity in FY17
Growth Trajectory.. slated to add ~36% of country’s new coal capacity in FY17 NTPC takes the decision to proceed with a new project only once it is satisfied on the availability of land, water, fuel, off-take arrangements and environmental clearances. Vision to maintain leadership position in India…
Slide 23: Capacity Addition .. Scheduled in 12th Plan (FY13 to FY17)
Capacity Addition .. Scheduled in 12th Plan (FY13 to FY17) Commissioned Commissioned FY16 & Target FY17 Target Year Project Target MW Year Project MW FY13 Sipat 660 FY16 Bongaigaon (Unit#1) 250 Indira Gandhi STPP JV 500 Koldam ( Unit #3 &4) 400 Mouda – I, Unit - 1 500 Vindhyachal -V (Unit #3) 500 Vi
Slide 24: Tentative commissioning targets for FY18 and beyond
Tentative commissioning targets for FY18 and beyond Projects already under construction and likely year of commissioning Year Project Target MW NTPC JV Projects FY18 Barh –I (Unit#1) 660 660 Kudgi (Unit#3) 800 800 Solapur (Unit#2) 660 660 Lara (Unit#2) 800 800 Gadarwara (Unit#1) 800 800 Unchahar- IV
Slide 25: Why to Invest in NTPC
Why to Invest in NTPC Growth in Gross Block, CWIP & Financial leverage Rs. crore CWIP & Cap advances Gross Block 4,00,000 CWIP % of total Fixed assets Financial Leverage (Debt-Equity) 1.40 1.38 160% 3,50,000 1.27 1.35 140% 1.18 3,00,000 1.05 1.03 120% 2,50,000 100% 0.72 0.78 2,00,000 0.60 0.61 0.64
Slide 26: Moving towards Green Energy….increasing RE Landscape
Moving towards Green Energy….increasing RE Landscape Renewables (installed Capacity over the years in GW- Promoting Renewable Energy Actual and Projected) • Initiative for creation of renewable 200 175 energy capacity by mandating thermal power developers to 150 establish capacity. 100 43 • Introduc
Slide 27: NTPC Solar Plan in sync with National Plan
NTPC Solar Plan in sync with National Plan NTPC Solar Power Plan….Diversifying Fuel Mix….360 MW already commissioned 10,000 MW OWN CAPACITY ADDITION 15,000 MW UNDER NSM Ananthapuramu (200 MW) Current Projects-3010 MW FIRST TRANCHE 3000 MW April 2015 April 2016 - Under Execution- 510 MW - Under Tende
Slide 28: Active Support of GoI – Regulatory Interventions
Active Support of GoI – Regulatory Interventions Integrated approach towards making power affordable Tariff Policy UDAY Coal Reforms Focus on 4 Es: Electricity for all, A Scheme for the Financial Flexibility in utilization of domestic Efficiency to ensure affordable Turnaround of Power Distribution
Slide 29: Coal: Long-term Fuel Security
Long-term Fuel Security Coal Supply Agreements Installed Capacity Break-up – Standalone (By Fuel)1 NTPC implements projects only upon establishing availability of Current Capacity Break-up Solar, Gas, 360, Hydro, fuel. 0.9% 800, 4017, 2.0% NTPC’s thermal Capacity of 32605 MW is covered by long term
Slide 30: Long-term Fuel Supply (Cont’d)
Long-term Fuel Supply (Cont’d) Coal Supply (For NTPC Own Plants) Coal Requirements FY17E to FY18E (In MT) 169 185 94.1% 93.3% 94.2% 98.6% 4.7% 4.3% 90.2% 0.6% 1.1% 94.7% 94.6% FY17 E FY18 E 5.9% 6.7% 9.8% 5.8% 1.4% Domestic shortfall Captive ACQ/MoU/e-auction FY13 FY14 FY15 FY16 Q1/17 Equivalent Imp
Slide 31: NTPC Coal Mining Portfolio…10 Mines with ~7.3 BT GR
NTPC Coal Mining Portfolio…10 Mines with ~7.3 BT GR Status of Coal Mines Coal block GR (MMT) Mining Capacity Status MMTPA EC FC Acq. MDO Notice Pakri Barwadih 1574 18 Yes Yes Yes Appointed Chatti Bariatu 548 7 Yes Yes Yes Bids under Evaluation Kerandari 285 6 Yes St-I accorded Yes NIT to be issued T
Slide 32: Technology Progression
Technology Progression 32
Slide 33: Technology Progression—Increased Efficiency and Greater Environmental Protection
Technology Progression—Increased Efficiency and Greater Environmental Protection Leader in introducing new technologies in the power sector. Technologies Introduced Technologies Under Development Adoption of super critical parameters for higher efficiency Development of IGCC suitable for Indian coal
Slide 34: Paradigm shift in adopting Future Technology
Paradigm shift in adopting Future Technology International Scenario SUPERCRITICAL ULTRA SUPERCRITICAL SUB- CRITICAL 350K-700oC/720oC Mature R&D- Technology 310K- Advanced 610oC/ 285K- 620oC USC Super critical 245K/540oC/540oC 245K- 600oC- Under Induction 580oC/593oC 620oC 245K/540oC/565oC Subcritica
Slide 35: Risks & Mitigation
Risks & Mitigation 35
Slide 36: Key Risks and Mitigation
Key Risks and Mitigation Risk Mitigation Coal and Gas Supply Constraints Long term Fuel Supply Agreements with CIL for a period of 20 years – ACQ for ~164.57 MMT. Bridge linkage allocated for 12.2 GW of upcoming capacity Govt approved flexibility in use of domestic coal to reduce the cost of power g
Slide 37: Sustainability Initiatives
Sustainability Initiatives
Slide 38: NETRA - Providing the Technology and R&D Edge
NETRA- PROVIDING THE TECHNOLOGY AND R&D EDGE Spent Rs. 129.68 crore on R&D activities during the year 2015-16 Technology Development-In house & Collaborative R&D for development of new processes, tools & systems. Efficiency & Availability Improvement New & Renewable Energy Climate Change & Environme
Slide 39: Inclusive Growth
Inclusive Growth Spent Rs. 491.80 crore on CSR activities during the year 2015-16. NTPC's CSR initiatives have touched the lives of around 25 lakh people in one way or the other at remote locations. NTPC championed the cause of Swachh Bharat by successfully building 29,000 toilets in government scho
Slide 40: Disclaimer
Disclaimer • This presentation is issued by NTPC Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part f any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securiti
Slide 41: Thank You
Beyond Power and Profit… THANK YOU