…Message Box ( Arial, Font size 18 Bold) 1 Annual General Meeting
Praveer Sinha CEO & Managing Director
27th July 2018
…Message Box ( Arial, Font size 18 Bold) 2 Agenda
• About Tata Power
• Financial Performance and Statistics
• Significant Developments in the Sector
• Strategic Intent and Existing Investments
• Sustainability
• Awards and Recognition
…Message Box ( Arial, Font size 18 Bold) 3 About Tata Power
…Message Box ( Arial, Font size 18 Bold) 4 India’s Leading Integrated Power Company
Fuel & Logistics Generation Transmission Distribution Value Added Business • Stake in Indonesian coal • 10,757 Megawatt of • Mumbai: • Mumbai • TPSSL further fortified its mines installed capacity as on 1,200 Ckm network 21 – Over 6.8 lakh manufacturing capabilities this st • Assurance of fuel supply 31 Mar‘18 with 32% in receiving stations consumers year and produced over 220 MW the form of clean and • Delhi cells and 300 MW of modules for all the operational • Powerlinks: projects green generation – Over 16.5 lakh • PM/OM service contracts for 2,328 Ckm long line consumers • • 287 MW of new capacity about 4300 MW Integrated coal logistics connecting Tala hydro • Ajmer under execution in India • TPTCL was India’s 3rd largest management through project–Bhutan to North – Over 1.34 lakh and international power trading company during state-of-the-art Cape India consumers sized ships geographies FY18 Ajmer Distribution Coal production at KPC, The renewable capacity 110 kV GIS, 33 kV GIS & 250 Strategic Engineering Division Franchisee awarded BSSR and AGM Indonesia grew to 2,349 MW by the MVA ICT at Versova was sold to Tata Advanced during FY18 was 66 MT end of FY18 receiving station Systems at an enterprise value FY18 Consumers added: same as in FY17 commissioned of ₹ 2,230 crore - 26,000 in Mumbai - 70,000 in Delhi
…Message Box ( Arial, Font size 18 Bold) 5 Financial Performance and Statistics
…Message Box ( Arial, Font size 18 Bold) 6 Tata Power Company Ltd : Snapshot
TATA Power Group as at FY18 Reported Consol EBITDA ₹ 6,380 Cr Share of Profit of JVs, Associates ₹ 1,554 Cr Market Capitalization ₹ 21,462 Cr Net Debt ₹ 46,991 Cr EV ₹ 68,453 Cr P / BV 1.14 EV / Reported EBITDA 11x Generation MW Transmission & Distribution Renewables MW Other Businesses Domestic 8,108 Mumbai Distribution Domestic Coal Tata Power Standalone 2,425 No. of Consumers (Lakhs) 6.80 TPREL 675 Shipping ▪ Trombay 1,430 MU sales 4,393 WREL 1,010 Tata Power Trading/Solar ▪ Hydro 447 Delhi Distribution Tata Power 379 Corporate ▪ Jojobera 428 No. of Consumers (Lakhs) 16.50 Tata Power Solar 47 Non Core ▪ Haldia 120 MU sales 8,634 Tata Power Trading 8 SED CGPL 4,150 Ajmer Distribution Real Estate Maithon 1,050 No. of Consumers (Lakhs) 1.38 Tata Projects Rithala 108 MU sales 303 Panatone/Tata Comm IEL 375 Transmission Tata Industries International 300 Transmission: Mumbai 1,188 CKM International TTML & TTSL Hydro, Bhutan 126 Transmission: Powerlinks 2,328 CKM Cennergi 230 Nelco Hydro, Zambia 120 Ceramics CKP (Coal, Indonesia) 54 Others (Voltas etc.)
Total 8,408 MW Total 2,349 MW EBITDA 1,970 Cr EBITDA 2,155 Cr EBITDA 1,777 Cr EBITDA 478 Cr Share of Profit -JVs, Associates 76 Cr Share of Profit -JVs, Associates 70 Cr Share of Profit-JVs, Associates (23) Cr Share of Profit-JVs, Associates 1431 Cr Net Debt 19,798 Cr Net Debt 6,397 Cr Net Debt 9,112 Cr Net Debt 11,684 Cr
Note: Entities shaded in blue are not consolidated …Message Box ( Arial, Font size 18 Bold) 7 Improvement in Operating Profit
Consolidated Operating Profit (` crore) Standalone - Operating Profit (` crore)
6% Improvement 10% Improvement
6061 2337 5701 2118
FY17 FY18 FY17 FY18 Operating profit increased mainly due to higher contribution Operating profit increased mainly due to higher contribution from Renewable Business and Regulated Business from the Regulated Business and favorable tariff order for Jojobera
…Message Box ( Arial, Font size 18 Bold) 8 PAT Comparison
Consolidated PAT (` crore) Standalone PAT (` crore)
10% decline 23% improvement
1751 1287 1577 1049
FY17 FY18 FY17 FY18 While the consolidated operating profit and share of profit The Standalone PAT before one time exceptional loss# was from Associates/JVs increased, the PAT (before one-time higher exceptional items*) reduced due to higher finance cost and depreciation
* Mainly on account of a reversal in the impairment in the value of the Indonesian coal investment 9 # Mainly…Message on account of an Box impairment ( Arial, of the Fontinvestment size in 18 CGPL Bold) Q1FY19 results
Consolidated PAT (` crore) Standalone PAT (` crore)
328% improvement 422% improvement
1735 1134
406 217
FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1
Renewables continue to report strong EBITDA of ₹580 crore despite lower EPC sales. All other subsidiaries & Joint Ventures continued to perform well. Consolidated Revenue stood at ₹7,139 crore up by 16% as compared to ₹6,166 crore while Standalone Revenue stood at ₹1,844 crore as compared to ₹1,850 crore.
…Message Box ( Arial, Font size 18 Bold) 10 Tata Power Stock Performance
100.0 Tata Power Share Price* 3000 (`) 94.7 93.9 Power Index 89.1 88.2 BSE 90.0 2800 84.2 84.8 84.6 81.0 80.6 81.9 81.2 79.1 79.4 80.0 77.8 2600 73.1 70.9 70.0 2400 2382 2349 2330 2324 2321 2319 60.0 2200 2261 2238 2221 2226 2206 2223 2126 2129 50.0 2000
1947 1945 40.0 1800 Tata Power 30.0 1600 Power Index 20.0 1400
10.0 1200
0.0 1000 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18
During FY18, Tata Power’s stock has performed better than the S&P BSE Power Index
h * As…Message on 26 July’18 Box ( Arial, Font size 18 Bold) 11 Significant Developments in the Sector
…Message Box ( Arial, Font size 18 Bold) 12 Sectoral Developments
Plunging Solar Prices Extension of waiver of transmission charges and losses on Solar tariff (`/kWh) power from solar and wind power plants 10
8
6 2.44 • MoP issued guidelines to waive the levy of inter-state 4 transmission charges and losses on transmission of
2 electricity through the inter-state transmission system FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 • This will be applicable to all wind and solar projects • India’s solar tariffs have dropped significantly due to a sharp commissioned till 31st March, 2022 drop in equipment prices and rising competition in the developer space. • However, the tariffs rose by 10-20% in H2FY18 due to the impact of proposed solar safeguard duty on solar imports
Reduction in solar tariffs is a welcome sign from a This development is expected to further encourage the consumer and Discom perspective. Your Company sees this renewable sector in India and help to move towards as an opportunity to add viable solar power solutions. realization of the Government’s 175 GW target
…Message Box ( Arial, Font size 18 Bold) 13 Sectoral Developments
SAUBHAGYA – Pradhan Mantri Sahaj Bijli Har Ghar Yojana Pan-India Deployment of Smart Meters
• Targeted at providing last mile connectivity and electricity • The UDAY Scheme aims to reduce AT&C loss levels to 15% by connections to all households in rural and urban areas FY20 through deployment of Smart Meters • Aims to provide solar PV systems for un-electrified • A smart, automated metering system reduces meter data- households located in remote and inaccessible areas entry errors and costs by removing the need for manual meter reading • To connect 40 million households through this scheme by the end of 2018
The scheme for universal household electrification is Smart Meter installation will help reduce commercial expected to increase the demand for power in the losses of Utilities, enhance revenues, and serve as a country and, thereby, increase the utilisation of crucial tool in power sector reforms. generation assets.
…Message Box ( Arial, Font size 18 Bold) 14 Strategic Intent and Existing Investments
…Message Box ( Arial, Font size 18 Bold) 15 Sector Outlook & Trends - Shift to Integrated Solutions
…Message Box ( Arial, Font size 18 Bold) 16 Tata Power Strategic Intent 2025
• These targets have been arrived at after considering the growth opportunities in different segments of the power sector and also the Company’s financial position • In addition to the above, the Company will explore opportunities to grow in New and Value Added Businesses
…Message Box ( Arial, Font size 18 Bold) 17 Coastal Gujarat Power Limited
• CGPL operates India’s first UMPP and is amongst the largest power stations in the country and is operating at benchmark levels of efficiency • The Supreme Court has rejected the Company’s claim on the grant of compensation due to change in law or force majeure event • Your Company is in discussions with procurers and lenders to find an appropriate resolution • All efforts are underway to source coal at lower costs to reduce the under recovery of Mundra UMPP FY18 FY17 Availability (in %) 82.8 82.9 PLF (in %) 74.7 75.3 Operating Profit (15) 536 (in ` Cr) CGPL has been a recipient of the CBIP award for ‘Best Performing Utility in Thermal Power Sector’
…Message Box ( Arial, Font size 18 Bold) 18 Coal Companies
• Tata Power, through its subsidiaries, holds a 30% stake in PT Kaltim Prima Coal (KPC) and a 26% stake in PT Baramulti Suksessarana Tbk (BSSR); both projects are located in Indonesia • These are strategic assets to hedge imported coal price exposure at CGPL and form an important part of the supply chain for its coal off-take requirements. FY18 FY17 Coal Production 66 66 (in MT) Operating 8,501 5,060 Profit (in ` Cr)
…Message Box ( Arial, Font size 18 Bold) 19 Maithon Power Limited
FY18 FY17 Availability (in 86.7 91.7 %) PLF (in %) 80.5 79.8 Operating Profit 644 803 (in ` Cr)
Maithon Power Limited (MPL), a joint venture of Tata Power & Damodar Valley Corporation, operates a 1050 MW (2X525 MW units) in Nirsa District, Dhanbad in the state of Jharkhand. This project is India's first public-private power project.
MPL has been rated as one of the top 20 performing power stations in the country
…Message Box ( Arial, Font size 18 Bold) 20 Jojobera
FY18 FY17 Availability (in %) 97.2 92.7 PLF (in %) 79.5 75.4 Operating Profit (in 240 194 ` Cr)
Tata Power operates a 427.5 MW coal-based thermal generation station at Jojobera – 240 MW contracted with the Jamshedpur discom and remaining with Tata Steel for its captive requirements.
The plant has undertaken various measures in FY18 which have led to improvements in plant availability and operational performance.
…Message Box ( Arial, Font size 18 Bold) 21 Trombay Thermal Power Station
FY18 FY17 Availability* (in %) 93.6 92.2 PLF* (in %) 77.3 79.1 Operating Profit 709.2 636.7 (in ` Cr)
• Trombay PPAs will expire on 31st March 2019 and the Company is pursuing options for tie-up of this power
* …MessageExcluding unit 6 Box ( Arial, Font size 18 Bold) 22 Mumbai Hydros
FY18 FY17 Availability (in %) 98.8 99.7 Operating Profit 247.1 252.7 (in ` Cr) • Tata Power operates a 447 MW portfolio of hydro-electric power plants around Mumbai • The portfolio consists of 3 plants – Khopoli (72 MW), Bhira (300 MW) and Bhivpuri (75 MW)
Khopoli hydro station was Maharashtra’s first large hydro-electric station and has completed more than 100 years in service
…Message Box ( Arial, Font size 18 Bold) 23 Industrial Energy Limited
FY18 FY17 Availability (in %) 89.9 90.5 PLF (in %) 81.5 77.7 Operating Profit 209 227 (in ` Cr) • IEL operates a 120 MW coal based plant in Jojobera. It also operates a 120 MW co-generation plant (Power House #6) in Jamshedpur, inside the Tata Steel plant which is based on blast furnace and coke oven gas. • It also operates a 2 x 67.5 MW co-generation plant at Kalinganagar, Odisha, deploying production gases from Tata Steel’s plant. IEL is providing reliable and cost effective power supply to Tata Steel thereby supporting it in being a competitive steel producer
…Message Box ( Arial, Font size 18 Bold) 24 Tata Power Delhi Distribution Limited
FY18 FY17 AT & C Loss Reduction (%) Distribution 8,634 8,270 47.6 Target Sales (in MUs) 45.4 Operating 47.8 Actual 1,012 855 40.9 Profit (in ` Cr) 44.9 35.4
31.1 33.8
22.0 26.5 20.4 23.7 18.7 17.0 15.3 18.6 12.5 12.0 16.7 11.5 11.0 15.2 10.5 10.0 14.2 11.5 10.7 10.4 9.9
8.8 8.6 8.4
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
• TPDDL reduced its AT&C losses to 8.40% as compared to 8.57% in FY17 • TPDDL has also met peak demand of 1,852 MW in FY18 In FY18, there was a further reduction of ~ ` 157 crores in regulatory assets outstanding (` 4,400 crore as on 31-3-18)
…Message Box ( Arial, Font size 18 Bold) 25 Mumbai Distribution
FY18 FY17 Distribution 4,393 4,977 Sales (in MUs) Operating 519 583 Profit (in ` Cr) • During FY18, 26,035 consumers were added. With this, the total consumer base has reached 6,86,629. • Over the year, the regulatory assets outstanding reduced from ` 1888 crore to ` 1310 crore (31-3-2018)
At the core of reliable power supply to the city is the unique 'Islanding System' pioneered by Tata Power, due to which the city of Mumbai has the advantage of assured uninterrupted reliable supply of power.
…Message Box ( Arial, Font size 18 Bold) 26 Ajmer Distribution
FY18 FY17 Distribution 303 N.A. Sales (in MUs) Operating (0.95) N.A. Profit (in ` Cr) • The Tata Power Company Ltd. successfully won the bid floated by Ajmer Vidyut Vitran Nigam Limited (AVVNL) for appointment of a Distribution Franchisee (DF) in Ajmer city, Rajasthan.to cater to the power requirements of customers in Ajmer.
The total area under the franchisee is around 190 sq km. The total consumer base is around 1.38 lakh and total peak demand is 110 MW.
…Message Box ( Arial, Font size 18 Bold) 27 Mumbai Transmission
• The Transmission assets, which are a part of the Mumbai License Area, had a grid availability of 99.48% as against the MERC norm of 98%. • Availability was maintained at high levels by proactive actions taken based on preventive maintenance practices, effective condition monitoring and judicious planning and execution of planned outages. FY18 FY17 Availability (in 99.48 99.63 %) Operating 539 438 Profit (in ` Cr)
…Message Box ( Arial, Font size 18 Bold) 28 Powerlinks
• Powerlinks Transmission Limited (PTL) is a joint venture between the Tata Power Company Limited (51%) and Power Grid Corporation of India Limited (49%) • The company operates a transmission line between Siliguri in West Bengal to Mandola in Uttar Pradesh (near New Delhi), covering a distance of 1166 kms. • The Project is in successful commercial operation since 2006.
FY18 FY17 Availability 99.89 99.64 (in %) Operating 143 136 Profit (in ` Cr)
…Message Box ( Arial, Font size 18 Bold) 29 Renewable Business – TPREL, WREL & Standalone Assets
1,010 MW 675 MW WREL TPREL • TPREL, a 100% subsidiary of Tata Power is the renewable energy arm of the Company • TPREL acquired WREL in September 2016 • WREL is a fully owned subsidiary of TPREL and has one of the largest operating solar portfolios spread across India. It has an operating capacity of 1,010 MW • The Renewable Business’ overall commissioned capacity added up to 2,064 MW at the end of FY18. 226 MW capacity was commissioned during FY18 FY18 FY17 379 MW Availability 98 97.4 Standalone (in %) assets Operating 1,783 1,538 Profit (in ` Cr)
…Message Box ( Arial, Font size 18 Bold) 30 Tata Power Solar Systems Limited
FY18 FY17 Operating 235 167 Profit (in ` Cr) • Tata Power Solar Systems Limited executed and commissioned several large projects across multiple states and delivered rooftop projects across the country. • The company also achieved a significant milestone in its exports business and recorded export revenue of over ₹ 200 crore. • TPSSL further fortified its manufacturing capabilities this year and produced over 220 MW cells and 300 MW of modules - a record high in the history of the company
TPSSL is India’s largest solar EPC and rooftop player
…Message Box ( Arial, Font size 18 Bold) 31 Haldia
FY18 FY17 Availability (in %) 83 97.7 PLF (in %) 79 79.2 Operating Profit 79 21 (in ` Cr) • Tata Power operates a 120 MW waste-to-heat plant which utilizes coke oven gases to generate power. • A part of the power generated is sold under a PPA to the West Bengal State Electricity Distribution Company Ltd. and the remaining traded through Tata Power Trading Company Ltd.
…Message Box ( Arial, Font size 18 Bold) 32 Itezhi Tezhi Power Corporation - Zambia
FY18 FY17 Availability (in %) 99.3 99.9 Operating Profit 550.2 402.8 (in ` Cr) • ITPC, a JV with the Zambian utility ZESCO has built and operates a 120 MW hydro power plant in Itezhi Tezhi district in Zambia. • Itezhi Tezhi has been the first Public Private Partnership of its kind in the energy sector in Zambia ITPC forms around 5% of Zambia’s installed capacity and provides the nation with reliable clean power.
…Message Box ( Arial, Font size 18 Bold) 33 Cennergi – South Africa
• Cennergi (Pty) Ltd, is Tata Power's 50:50 joint venture with Exxaro Resources (South Africa) • Cennergi portfolio comprises of 230 MW wind generation capacity through its 2 wind farms at Tsitsikamma Community Wind farm and Amakhala Emoyeni Wind Project
FY18 FY17 Availability 98.6 98.7 (in %) Operating 427 263 Profit (in ` Cr) Cennergi windfarms are amongst the largest in Africa and have recorded good operating performance
…Message Box ( Arial, Font size 18 Bold) 34 Dagachhu Hydro Power Corporation – Bhutan
FY18 FY17 Availability (in 100 100 %) Operating 83.8 91.7 Profit (in ` Cr) • Dagachhu Hydro Power Corporation Limited is Tata Power's associate, with the Bhutanese Govt. Company & its affiliates holding 74% and Tata Power holding 26% • TPTCL has the rights to trade 100% generation from the station DHPC supplies low cost green power to India for sale through TPTCL
…Message Box ( Arial, Font size 18 Bold) 35 Adjaristsqali Georgia LLC - AGL
• The Georgia Project is a 187 MW hydro power generation project on the Adjaristsqali River in Georgia • The project completed construction in July and was synchronized in August 2017 • All commissioning tests required for commencing commercial operations were completed by end-September 2017 but the plant is currently not in operations. Sale of power from the plant may face challenges due to weak European and Turkish power markets
…Message Box ( Arial, Font size 18 Bold) 36 Sustainability
…Message Box ( Arial, Font size 18 Bold) 37 Sustainability, Community Relations – 7 Key Thrust Areas
Tata Power has reached out to over 5.5 lakh beneficiaries through its initiatives
Sanrachna Social Capital and Institution Swach Jal Arogya Building Drinking Health & Water & Sanitation Irrigation Samridhi & Daksh Livelihood & Employ- ability Vidya Samarth Education Financial Inclusivity Akshay Renewable Energy
Tata Power has spent ` 14.71 crore as against the Companies Act requirement (2% of Net profit) of ` 13.71 crore.
…Message Box ( Arial, Font size 18 Bold) 38 Community Relations Highlights
Project ABHA, Delhi These are women representatives who are the brand ambassadors for TPDDL’s programs under SAATHI. These ABHAs are engaged in reaching out to the residents of JJ clusters in Delhi in order to maximize the visibility of community initiatives.
…Message Box ( Arial, Font size 18 Bold) 39 Community Relations Highlights
Coaching Class, Kalinganagar
The CSR programs had a coverage of 278 villages. 336 schools were covered benefiting 48,000 school children
…Message Box ( Arial, Font size 18 Bold) 40 Community Relations Highlights
Health Camp for Women, Mundra
Health programs were implemented in 211 villages covering 2 lakh beneficiaries
…Message Box ( Arial, Font size 18 Bold) 41 Awards and Recognition
…Message Box ( Arial, Font size 18 Bold) 42 Awards and Recognitions
Haldia division received Prashansa Patra from the National Safety Tata Power’s Jojobera teams won big at the National Convention Council on Quality Concepts (NCQC) 2017
Tata Power won the ‘Best Risk Management Framework & Systems Tata Power’s joint venture Powerlinks Transmission Limited – Power’ at CNBC TV18 The India Risk Management Awards received Best in Class T&D Infra Asset at the 11th Enertia awards
…Message Box ( Arial, Font size 18 Bold) 43 Website: www.tatapower.com Email ID: [email protected] Contact No: +91 22 6665 8888
…Message Box ( Arial, Font size 18 Bold) 44