CESC Investor Presentation- November 2019
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~ '.-- RP-SanjivGoenka , ~ Group Growing Legaci es 17 November, 2020 Manager (Listing) National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G- Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 SCRIP CODE: CESC The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 SCRIP CODE: 500084 The Secretary The Calcutta Stock Exchange Limited 7, Lyons Range, Kolkata - 700 001 SCRIP CODE: 10000034 Dear Sir, Investor Presentation Further to our letter dated 16 November, 2020, please find enclosed a copy of the presentation to be made by the Company at the Investors' Conference to be held as per the schedule referred to in our said letter. Yours faithfully, Encl: CESC Limited CIN: L31901WB1978PLC031411 □ e-mail: [email protected] Regd. Office : CESC House, Chowringhee Square, Kolkata - 700 001, India Tel: +91 33 2225 6040 Fax: +9133 2225 3495 Web: www.cesc.co.in ~~ RP- Sanjiv Goenka , ~ Group CESC Limited Powering India since 1899 November 2020 1 ~~ RP- Sanjiv Goenka , ~ Group 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 issue, or any solicitation of any offer or recommendation to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect ”, “intend”, “may ”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”, “shall”, “should”, “will”, “woul d”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in tariff and the traffic structure, (d) availability of fuel, (e) changes in regulatory norms applicable to the Company and its subsidiaries, (f) technological changes, (g) investment income, (h) cash flow projections, (i) our exposure to market risks and (j) other risks. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. 2 ~~ RP- Sanjlv Goenka , ~ Group RP- Sanjiv Goenka Group CESC Ltd Fully Integrated Private Power Utility r ... RP – Sanjiv Goenka Group is a well known diversified business house in India. Phillips Carbon Black , India’s largest Carbon Black Manufacturer Phillips Carbonf Black Limited Ltd ... RP – Sanjiv Goenka Group has interests across diverse business sectors - Power & Natural Resources, Carbon Black, IT & Education, Retail, FMCG, Media & Entertainment and Infrastructure. spencers Spencer`s Retail Ltd 3rd Largest Hypermarket Chain ...' Makes fine living a{fordab/.e Power Generation and Distribution contribute a majority of the Firstsource Solutions revenues of RP-SG Group. Top 3 Pure Play BPO Player ... , firstsource· Ltd Stay Ahead r ... Dr Sanjiv Goenka is the principal shareholder of the RP-Sanjiv Goenka Group together with other Group companies. t I Saregama India Ltd Largest Collection of Indian Music ... soul of India r Harrisons Malayalam Employees 50,000+ Shareholders 5,00,000+ Tea and Rubber Plantations Ltd Gross Assets ~Rs. 47,400 Cr Revenue ~Rs. 27,000 Cr HARR/SONS MALAYALAM UMITED EBITDA ~ Rs. 5,200 Cr PAT ~Rs. 1,800 Cr Guiltfree Industries Ltd Fastest Growing FMCG Company 3 ~~ RP- Sanjiv Goenka , ~ Group Indian Power Sector India – Power Demand (BU) India – Per Capita Power Consumption (Kwh) 1250 1150 1200 1200 1050 1100 1125 1200 950 1000 1000 1000 800 850 1000 800 800 600 600 400 400 200 200 0 0 I I I I II I I I I FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 GDP Growth & Power Demand (FY20 – FY24E) India – Energy Demand Growth (%) 10.0% 8.8% 15% 9.0% 8.0% 10% 6.7% 6.9% 7.0% 6.2% 5.8%5.4% 5% 6.0% 4.3% 5.0% 3.7% 0% 4.0% 2.6% 3.0% -5% FY20 FY21E FY22E FY23E FY24E 2.0% 0.5% -10% 1.0% 1.3% 0.0% GDP Growth (%) Power Demand Growth (%) FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 4 ~~ RP- Sanjiv Goenka , ~ Group Indian Power Sector - Outlook Share of Private Sector Going Up • Per capita consumption of electricity in India has increased from 779 units in FY10 to 1208 units in FY20. 100% 80% 32% 31% 30% 29% 27% 26% 25% 25% 25% 24% 25% 60% • Privatization of Utilities in UTs have been announced. 18% 21% 27% 31% 36% 39% 41% 44% 45% 46% 47% 40% 50% 47% 20% 43% 40% 37% 35% 34% 32% 30% 30% 28% 0% • ₹900 Bn injection by Govt will help Discoms to repay their dues. FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ■ State ■ Private ■ Central • Amendments to the Electricity Act include subsidy to be provided via Direct Benefit Transfer. India – Total Renewable Capacity (GW) • Amendments to Electricity Act will make SERCs more 87.0 90.0 77.6 effective & independent. 69.0 57.3 60.0 42.8 35.8 28.5 31.6 30.0 20.2 25.0 14.4 16.7 0.0 I I I I I … … … … … I… I… I… … … … … FY FY FY FY FY FY FY FY FY FY FY FY 5 ~~ RP- Sanjiv Goenka , ~ Group CESC - POWER BUSINESS GENERATION & DISTRIBUTION 6 OPERATIONAL FACILITIES -OVERVIEW ~~ RP- Sanjiv Goenka , ~ Group RenewablesNoida Distribution Kolkata Distribution Business Independent Power Plants 600 MW thermal power plant in -335 sq km area Coal Mining, Power Generation & Chandrapur, Maharashtra -Consumer Base- 1 Lakh Distribution (Project cost Rs. 38 billion) -1125 MW thermal power plant - 26 yrs of operation - 567 sq km area 600 MW thermal power plant in - 3.3 mn consumers Haldia, West Bengal - Regulated business - 21,866+ ckt km of network (Project cost Rs. 46 billion) - entire output to CESC Renewables Distribution Franchisee Distribution Franchisee 24 MW Wind power plant, Rajasthan in 3 cities (Rajasthan) 26 MW Wind power plant, Gujarat Kota and Bharatpur & Bikaner – 18 MW Solar Power Plant in Tamil Nadu All operational 36 MW Wind power plant in Mandsaur, Madhya Pradesh Malegaon (Maharashtra) – 70 MW Wind Power plant in Gujarat Operations started March 2020. 7 RP - Sanj iv Goenka CESC LIMITED Group Recent key achievements r.,rsfteq Urn • S..C. lltl Significant rise in Consolidated PAT PAT FY20 – Rs 1306 Cr FY 19 – Rs 1184 cr - All time high EPS ~ Rs 98 (Consol) FY 18 – Rs 912 cr Chandrapur losses reduced substantially in FY’20 Budge Budge & Haldia amongst TOP TEN performing power plants in the country Marked improvement in T&D Loss FY20 - 8.90% FY 19 – 8.96% - Reduction of 20% over last 3 years FY 18 – 9.65% Power Export in FY’20 at 300 MU. Highest ever system demand (Kolkata distribution) - 2337MW (2020) Highest ever Dividend in FY’20 of 200% Now CESC – a pure power play utility with Pan-India presence in Generation & Distribution 8 ~~ RP- Sanjiv Goenka , ~ Group Financial Performance of key subsidiaries - FY`19-20 Revenue EBIDTA PAT PAT FY`19-20 FY`19-20 FY`19-20 FY`18-19 CESC Ltd (Standalone) 7982 2105 918 937 CESC Ltd (Consolidated) 11217 3737 1306 1184 Haldia Energy Ltd 2289 948 318 324 Dhariwal Infrastructure Ltd 1320 425 -10 (93) Crescent Power Ltd & 274 160 26 54 Renewables Noida Power 1741 255 140 140 Kota/Bharatpur/Bikaner 1631 9 -38 (60) 9 ~~ RP- Sanjiv Goenka , ~ Group Key Financial Performance- H1 FY`20-21 HY- FY`21 HY- FY`20 Revenue PAT Revenue PAT (Rs. Crs) (Rs. Crs) (Rs. Crs) (Rs. Crs) CESC Ltd (Consolidated) 5475 571 6306 597 Haldia Energy Ltd 1140 195 1185 167 Dhariwal Infrastructure Ltd 706 47 602 (49) Crescent Power & Surya 132 19 152 20 Vidyut Noida Power 850 47 968 92 Kota/Bharatpur/Bikaner 840 (32) 897 (56) Malegaon 178 (40) - - 10 ~~ RP- Sanjiv Goenka , ~ Group Distribution Overview Rajasthan – City/ (KOTA, Kolkata Noida Malegaon Location Bharatpur, Bikaner) Distribution Input based Input based Bikaner 0 0 Noida Licensee Licensee 0 Bharatpur Contract franchisee franchisee Kota 0 0 Kolkata Area 567 sq. km 335 sq. km 381 sq.