NTPC Limited · NSE:NTPC
NTPC — 5th Analysts and Investors Meet, Mumbai (August 2009)
53 slides from NTPC's conference presentation, Aug 3, 2009
Slide 1: NTPC Welcomes You to 5th Analysts and Investors Meet
NTPC Welcomes You to 5th Analysts and Investors Meet A August t33, 2009 Mumbai
Slide 2: A Presentation on NTPC
A Presentation on NTPC By y Mr. A.K.Singhal Director (Finance) (Finance), NTPC
Slide 3: Corporate Vision
Corporate Vision Corporate Vision “A A world class integrated power major, powering India’s growth, with increasing global presence presence” 2
Slide 4: Contents
Contents 1 NTPC today 2 Performance Highlights:2008-09 & Q1/10 3 Opportunities and Challenges 3
Slide 5: Evolution of NTPC
Evolution of NTPC 1975 1997 2004 2005 2007 2008 Set up in 1975 GOI Listed on Rechristened as First step Strategic with i h 100% 5 11 2004 5.11.2004. t towards d alliances : conferred NTPC Limited in line strategic ownership by the status of JV Co. with Became 3rd with its changing diversification-
Slide 6: Pan India Presence
Pan India Presence No of plants Capacity (MW) NTPC Owned KOLDAM LOHARINAG PALA Coal 15 24,395 (800 MW) (600 MW) DADRI RUPSIABAGAR KHASIABARA (260MW) Gas/Liquid fuel 7 3,955 (817 MW) LATA TAPOVAN FARIDABAD (430 MW) (162 MW) Total 22 28,350 BTPS NCTPP TAPOVAN VISHNUGAD (705 MW) (1,820 MW)(520 MW) IGST
Slide 7: NTPC- Today
NTPC- Today The Stature One of the three largest Indian companies with market cap of Rs.1778 billion Ranks 126th on the basis of market Cap globally (Forbes 2009 data) Has a net worth of Rs. 574 billion Owns total assets of Rs. 1052 billion Ranked # 1 independent power producer in Asia in
Slide 8: NTPC – Subsidiaries (6)
NTPC – Subsidiaries (6) Generation Services Power Trading NTPC Hydro Ltd. NTPC Electric Supply NTPC Vidyut Vyapar (100%) Company Ltd. (100%) Nigam Ltd. (100%) Kanti Bijlee Utpadan Nigam Ltd. (51%) Bhartiya Rail Bijlee Company Ltd. (74%) Pipavav Power Development Co Ltd (100%)* NTPC Group as on 31.3.
Slide 9: NTPC – Joint Ventures (15)
NTPC – Joint Ventures (15) Power Equipment Coal Acquisition Power Trading Services Manufacturing Generation Aravali Power Utility Powertech Ltd NTPC BHEL Power International Coal Ventures Pvt. Ltd National Power Company Pvt Ltd Projects Pvt Ltd (50%) Exchange Ltd (16.67%) (50%) (50%) (14.29%) NTPC T
Slide 10: Contents
Contents 1 NTPC today 2 Performance Highlights:2008-09 & Q1/10 3 Opportunities and Challenges 9
Slide 11: Performance Highlights: 2008-09 & Q1/10
Performance Highlights:2008-09 & Q1/10 1 Capacity Growth 2 Operational Performance 3 Fi Financial i l Performance P f 4 Commercial Performance 5 Others 10
Slide 12: Capacity Growth
Capacity Growth Increase in commissioned capacities 500 MW at Sipat-II 500 MW at Bhilai Expansion Q1/10 500 MW at Kahalgaon-II Increase in commercial capacities 1000 MW at Sipat –II 1000 MW at Kahalgaon-II Investment I t t approved d Project investment Rs. 121458 million for Rihand
Slide 13: Operational Performance 2008-09
Operational Performance 2008-09 Installed Capacity Crosses 2000 MW commercial 30000 MW 1000 MW commissioned capacity addition TOTAL CAPACITY GENERATION GENERATION AS ON 31.3.2009 2008‐2009 GROWTH 18.79% 28 64% 28.64% 81.21% 71.36% All India NTPC NTPC 147,966 MW 27850 MW All India 723.56 206.94 BUs B
Slide 14: Operational Performance – Generation & Capacity utilization
Operational Performance – Generation & Capacity utilization Generation – Quarter and Year PLF – Year and Quarter 2009 2008 Q1-10 Q1-09 Coal 91.14% 92.24% 92.87% 92.19% BUs Stations Gas 67.01% 68.14% 79.87% 67.20% Stations All India 77.19% 78.61% 77.75% 77.74% Availability – Year and Quarter 2009 200
Slide 15: Financial Performance – 2008-09 (Audited)
Financial Performance – 2008-09(Audited) Rs. Million 2008-09 2007-08 GOLY* Total income 452 728 452,728 400 177 400,177 13% Net Sales 419,238 370,501 13% Other income 33,490 29,676 13% Total Expenditure 359,133 297,628 21% Fuel 271,107 220,202 23% Depreciation 23,645 21,385 11% Interest & finance 20
Slide 16: Robust Financials- YOY
Robust Financials- YOY Rs. Million 700 Debt to Net Worth 0.70 31.03.2009 31.03.2008 GOLY 600 574 0.60 0.60 Gross fixed assets 623,530 533,680 17% 526 486 500 0.52 0.50 Net block 329,377 260,937 26% 418 450 0.50 0.45 400 0.40 CWIP incl. stores 264,049 224,783 17% 0.41 346 s. Billion 300 272 0.30 Inve
Slide 17: Robust financials leading to strong Cash Flows
Robust financials leading to strong Cash Flows Rs. Million During 2008-09, 77% of Net Operating Cash Cash & Cash Equivalents : Flows used in Investment Activities as Rs. 149 Billion as on 31.03.08 compared to 60% during 2007-08. Rs. 163 Billion as on 31.03.09 171 16
Slide 18: Financial Performance – Q1 2009-10
Financial Performance – Q1 2009-10 (Unaudited) Rs. Million Q1 Q1 GOLQ 25% 2009-10 2008-09 Total income 127790 102567 25% Net Sales 120027 95395 26% Other Ot e income co e 7763 7172 8% Total Expenditure 98845 80920 22% Fuel 77427 61386 26% Depreciation 6128 5524 11% 4447 4219 5% Interest & Finance Ch
Slide 19: Financial Performance- Accelerated investment in Capex
Financial Performance- Accelerated investment in Capex p RAPID EXPENSION Highest ever capital Times expenditure of Rs. Rs 127bln Projected during 2008-09 2009-10 177000 3.3X 45% higher than previous 2008-09 126865 2.4X year’s year s Rs Rs. 88 bln 2007-08 87519 1.6X Total capital expenditure Ye
Slide 20: Commercial Performance
Commercial Performance 100% realization of billing for six 100 100 100 100 100 100 years in succession and also for Q Q1/10 Letters of Credit to the extent of 105% of average monthly billing established by all customers 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 Timely Servicing of Bonds
Slide 21: Other key highlights 2008-09, Q1/10
Other key highlights 2008-09, Q1/10 MoU for 4000 MOU signed on July 12, 2009 with the Government of Chhattisgarh for MW Coal establishing a 4000 MW coal based thermal power project having 5 units Based plant of 800 MW each at Lara in Raigarh District of Chattisgarh. Chattisgarh Online High A JV Comp
Slide 22: Awards and Accolades
Awards and Accolades BEST CFO PLATTS TOP Dun & Infrastructure CII Exim Bradstreet 250 GLOBAL IPMA ICAI AWARD Excellence Bank American ENERGY AWARD 2005 Award Award for Express COMPANY & 2008 Excellence Corporate 2008 2008 Award PROJECT ENVIRONMENT OPERATIONAL BUSINESS BEST WORK PLACE EFFICIENCY TRAI
Slide 23: Contents
Contents 1 NTPC today 2 Performance Highlights:2008-09 & Q1/10 3 Opportunities and Challenges 22
Slide 24: Opportunities and Challenges
Opportunities and Challenges Sustaining present level of Operational Performance Resources Fuel Security Growth Challenges Growth Accelerated Organic Growth Manpower Diversification and Inorganic Growth Managing Environment Environment Regulatory Environment Fuel Security Managing people
Slide 25: Sustaining present level of Operational Performance
Sustaining present level of Operational Performance Strategy –well defined operations Strategy • Periodic Regional Operations Performance Review (ROPR), Technical Audits emphasis and redefinition , PEER review, efficiency gap Follow up removall follow-up, f ll R&M process streamline, t li overhaul h
Slide 26: Sustaining present level of Operational Performance
Sustaining present level of Operational ….. Performance Benchmarking with world standards • NTPC became a member of North America Electric Reliability Corporation (NERC). NERC maintains a database of more than 5000 generating units around the world through its Generating Availability Data System (GA
Slide 27: Performance comparison (475 – 525 MW)
Sustaining present level of …. Performance comparison (475 – 525 MW) No. of international units in the cluster = 74 No. of NTPC units = 26 26
Slide 28: Performance comparison (200– 220 MW)
Sustaining present level of …. Performance comparison (200– 220 MW) No. of international units in the cluster = 81 No. of NTPC units = 35 G R O S S C AP AC IT Y F AC T O R (P L F ) UNP L ANNE D O UT AG E F AC T O R 26.23 100.29 96.51 ‐‐‐‐‐‐‐> (% ) 91.42 ‐‐‐‐‐‐‐‐> (% ) 78.86 56.52 10.16 2.23 5.69 1.8
Slide 29: Fuel Security
Fuel Security Strategy -Reducing reliance on fossil fuels by diversification of fuel-mix •Coal based generation to reduce to 70% by 2017 •Hydro generation to contribute 12% by 2017 •Nuclear and renewable to contribute 3% and 1% respectively CAPACITY MIX - 2017 (75,000 MW) CAPACITY MIX - TODAY CAPACI
Slide 30: Fuel Security – Foray into Renewable Energy
Fuel Security Strategy-Foray into Renewable Energy Wind Energy: – 1,010 MW under active consideration in the State of Karnataka, Andhra Pradesh and Gujrat; Planned Renewable Energy gy Hydro Energy: Portfolio – Mini Hydel plans envisaged at three Renewable Energy Capacity sites Source ((MW)) So
Slide 31: Fuel Security - Coal
Fuel Security - Coal Strategy –Sustaining & Enhancing Fuel Security 2008-09 Total Coal Supply received 129.78 MMT (consisting of Domestic Coal of 124.37 MMT & imported coal of 5.41 MMT) as against 122.97 MMT received during 2007-08 Q1/10 32.85 MMT of coal received (including imported coal of 3.25 MM
Slide 32: Fuel Security - Gas
Fuel Security - Gas Strategy –Sustaining & Enhancing Fuel Security 2008-09 APM/PMT Gas of 8.68 MMSCMD received as against 8.99 MMSCMD received last Yr. Purchased 11.9 9 MMSCMD of regassified LNG from Spot Market and 0 0.07 07 MMSCMD on Spot/Fallback Arrangement as against 2.81 MMSCMD last Yr. Q1/10
Slide 33: Rationale for accelerated organic growth… the drivers
Rationale for accelerated organic growth… the drivers Growth Drivers: Global GDP Forecasts 2009-10 Consensus Consensus Estimate Worst Case Estimate India’s GDP Growth is 2009 2009 2010 expected to be 2nd highest in the World USA -1.8/-2.2 -2.5/-3.0 +0.7/1.3 during 2009 & 2010 Japan p -1.6 -2.5 +0.2
Slide 34: Growth Drivers – Existing Energy Deficit
Growth Drivers…….. Existing Energy Deficit Need for additional capacity due to soaring energy deficit in India Sectorwise Capacity As On 31.3.2009 Fuelwise Capacity As On 31.03.2009 Nuclear Renewable 4,120 MW Pi t Private 13 242 MW 13,242 3% 15% State 9% 22,879 MW 76,115 MW Hydro 36,878 MW 25% 52% 3
Slide 35: Growth Drivers – Low Per Capita Consumption
Growth Drivers….. Low Per Capita Consumption Per Capita Consumption of Electricity • India is 5th largest power consuming country in the world India 704 In 2007–08 Figures in kwh with 3.8% share Egypt 1,465 China C a 1,684 ,68 Brazil 2,340 • India is 3rd largest Russia 6,425 power consuming Germany
Slide 36: Growth Drivers – XI Plan Target
Growth Drivers….. XI Plan Target-2007-2012 (Revised) Sector Thermal Hydro Nuclear Total Central sector 24840 8654 3380 36874 State Sector 23301 3482 0 26783 Private Sector 11552 3491 0 15043 Total 59693 15627 3380 78700 Year wise XI plan targets vs achievement Year 2007-08 2007 08 2008-09 2008 09 20
Slide 37: Accelerated Organic Growth
Accelerated Organic Growth Strategy-Increasing Generation Capacity 3240 MW already commissioned Projects under construction (MW) under XI plan SIPAT – I (COAL) / CHHATTISGARH 1980 17930 MW capacity under BARH – I (COAL) / BIHAR 1980 Construction including 4000 MW under construction in JV NCTPP –
Slide 38: Diversification and Inorganic Growth
Diversification and Inorganic Growth Strategy-Related Diversification Acquisition of 44.6% stake in TELK for manufacturing and repair of high voltage transformers and associated equipment Business collaboration and shareholders agreement signed with Govt of Kerala and TELK Acquired 44.6% stake
Slide 39: Way Forward–An Integrated Power Major
Way Forward–An Integrated Power Major • Hydel Power ~9,000 • Globalization • Power trading MW BY 2017 — Setting up of power • Power distribution • Nuclear Power 2000 MW plants abroad BY 2017 — International • Renewables ~1000 MW consultancy BY 2017 Lateral Integration Forward Integration Related Div
Slide 40: NTPC BY 2017
NTPC BY 2017 … Poised to become a well diversified corporate Present 2011 2011--12 2016 2016--17 Installed capacity (MW) 30,644 ~ 50,000 ~ 75,000 Coal mining (production) -- 14 MTPA ~ 47 MTPA 4.83 BU Trading (units traded) 10 BU 25 BU (2008-09) Distribution (capacity) -- 1,000 MW 2,000 MW Employee s
Slide 41: Managing Environment – generating clean power
Managing Environment – generating clean power Strategy – Sound environment management NTPC is amongst the cleanest fossil fuel based power generator in the world with CO2 intensity of power generation comparable with the best Renewables • By 2017, NTPC plans to have at least 1000 MW thro’ renewable
Slide 42: Managing Environment – Ash Utilisation
Managing Environment ….. Strategy – Innovating methods for Ash Utilisation Achieved ash utilization of 56.7% i.e. 24.4 MTs of ash. A h utilization Ash tili ti increased i d to t over 5 times ti in i 7 years. 41
Slide 43: The Challenge of Regulatory Environment
The Challenge of Regulatory Environment Strategy – to strive to remain commercially attractive source of power Average selling price is around Rs.2.12 per unit in fiscal 2009 Supply decisions based on commercial principles Allocation of power to customers with ability to pay Regulation/reallocat
Slide 44: Tariff Regulation 2009-14
Tariff Regulation 2009-14…… providing certainty for next 5 years CERC issues Tariff Regulations guided by the National Policies Supportive Tariff Petitions by the Utility Regulatory Structure Tariff Fixing provides Process Transparent public consultation process certainty of Revenues for Tariff Orde
Slide 45: Managing people-Human Resource Development
Managing people-Human Resource Development Strategy –to retain experienced manpower and attract new talent Senior executives possess NTPC Limited – Best Employer extensive experience of the industry y g large No. 1 Among g Companies p No. 1 in Manufacturing and Production Planned interventions a
Slide 46: Managing people
Managing people.... Sustained improvement in Per Employee Performance Indicators Rs. 10.9 Rs. 13.8 Rs. 17.7 Sales Per Employee Million Million Million Rs. 2.7 Rs. 2.9 Rs 3.5 PAT Per Employee Million Million Million Rs 4.1 Rs. 4.7 Rs. 5.9 Value Added Per Million Million Million Employee 0.91 0.90 0.8
Slide 47: Fund Mobilization
Fund Mobilization Strategy – to maintain robust Key Ratios 18 Current Ratio Debt to Equity 3.5 16.70 17 3.22 16.1 3 15.57 3.16 2.89 16 2.5 2.56 15 14.33 14.29 . 9 2 1.91 14 16 14.16 14 07 14.07 13.89 14 1.5 12.77 1 13 12.46 0.41 0.45 0.5 0.52 0.60 0.5 12 0 11 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09
Slide 48: Fund Mobilization
Fund Mobilization… Strategy – to leverage strong ratios to raise debt at optimal cost New projects to be financed with Debt equity ratio of 70:30. Internal accruals sufficient to finance equity portion of scheduled investment Borrowings to made from domestic and foreign sources based on optimal c
Slide 49: Technological Up gradation
Technological Up gradation Strategy –to imbibe latest technological innovations considering 3 Es • NTPC’s Research and technology development wing, NETRA (NTPC Energy Technology Research Alliance) to focus on research and technology development NETRA related to green power. • NETRA building in Great
Slide 50: Competition
Competition Strategy –Recent Initiatives to sustain leadership thru better monitoring & Planning Monitoring of ongoing projects on daily/weekly basis Video Conducting Management committee Meeting-covering g Conferencing practically all sites Project Set up p to identify y bottlenecks in project p
Slide 51: Sound Corporate Governance Practices
Sound Corporate Governance Practices Fully Compliant with Clause 49 (Corporate Governance) of Listing Agreement Management Oversight Various Committees of the Board Composition of Board of Directors: • Audit Committee of independent Directors oversees Financial Reporting • 7 Full Time Directors • Co
Slide 52: Forward looking statements disclaimer
The information contained in this presentation contains forward looking statements. Actual result may vary materially from those expressed or implied, depending upon economic conditions, government policies and other factors. f Any opinion expressed is given in good faith but is subject to change wi
Slide 53: Power Producer of International Repute
Power Producer of International Repute www.ntpc.co.in 52
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