Reliance Power Ltd Investor Presentation - Confidential
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Reliance Power Ltd
Investor Presentation
Confidential
Forward looking statements – Important Note
This presentation and the discussion that follows may contain “forward looking statements” by
Reliance Power that are not historical in nature. These forward looking statements, which may
include statements relating to future results of operation, financial condition, business
prospects,
p ospec s, plans
p a s and
a d objectives,
objec es, are
a e based o
on the
e cu
current
e bebeliefs,
e s, assu
assumptions,
p o s, eexpectations,
pec a o s,
estimates, and projections of the directors and management of Reliance Power about the
business, industry and markets in which Reliance Infrastructure operates. These statements
are not guarantees of future performance, and are subject to known and unknown risks,
uncertainties, and other factors,
f some off which are beyond Reliance Power control and difficult
ff
to predict, that could cause actual results, performance or achievements to differ materially
from those in the forward looking statements. Such statements are not, and should not be
construed,, as a representation
p as to future p
performance or achievements of Reliance Power.
In particular, such statements should not be regarded as a projection of future performance of
Reliance Power. It should be noted that the actual performance or achievements of Reliance
Power may vary significantly from such statements.
Confidential
Family
8 YEAR OLD YOUNG GROUP
ASSETS CREATED ORGANICALLY IN INDIA
Million Shareholders; Amongst largest in the world
Milli Customers;
Million C t 1 outt off 6 IIndians
di Every
E Single
Si l Day
D
Young, trained & motivated manpower
Assets worth more than ` 2.6 Lakh crore (US$ 44.3 bn)
Net Worth more than ` 91,000
91 000 crore (US$ 15
15.2
2 bn)
Revenues of ` 56,000 crore (US$ 9.3 bn)
Operating Profit of ` 10,500 crore (US$ 1.8 bn)
Considered 1 US$ = Rs. 60 across the presentation Numbers as of FY14
Confidential 3
Reliance Group
p – Key
y Businesses
Financial Services Infrastructure Power Communication
Asset Management Power Sector Power Generation Wireless
Distribution Thermal
Life Insurance Generation Coal Enterprise
Transmission Gas
Renewable
General Insurance Urban Transport Telecom Infrastructure
Hydro
Road
Solar
Commercial Finance Metro Direct to Home
Wind
Airports
R
Resources
Broking & Distribution Cement Worlds largest submarine
Coal Mining
India cable network
EPC Services - In all Indonesia
infrastructure areas Coal Bed methane
Reliance has played a key role in nation building with strong presence in Core Sectors
Confidential Slide 4
Power Sector and Coal resources in India – Emerging Opportunities
Power ¾ Well diversified operating
portfolio of ~6,000 MW with
24*7 uninterrupted power supply for all unique strengths
India’s low Per capita power consumption set to increase ¾ Strong Financial Performance
and
d wellll capitalized
it li d balance
b l
significantly
sheet
US$ 250 bn investments envisaged for the power sector to ¾ Ready pipeline of ~15,000 MW of
projects for implementation
achieve 88.5 GW capacity additions target in 12th plan
Coal ¾ O
One off the
th largest
l t coall resource
portfolio in the private sector with
Coal availability for all capacities to be commissioned by 2 bn tones reserves in Inida
FY15 ¾ Coal production capacity of ~100
MTPA
Comprehensive measures to augment domestic coal ¾ Operating largest coal mine in
production terms of volume
¾ Pipeline include mines which
Attracting and incentivizing private sector mining to be a would be amongst top 3 mines in
key focus the world
Renewable
Setting up of Ultra-Mega Solar Power Projects ¾ ~200 MW renewable portfolio
Implementation of Green energy corridor project for operational
¾ 1000 MW of projects targeted
evacuation of renewable energy
for development
Reliance Power well positioned to capitalize on emerging opportunities
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
Reliance Power - Overview Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
First Phase Capex of ~ USD$ 8 billion completed
~ 6000 MW of Operating
p g Power Capacity
p y + 20 MTPA of Coal
Mine has become operational
Proven Track record of execution capabilities
p
Key Investment
Highlights
Demonstrated Sound Operational Performance
Ready pipeline of Power projects of nearly 15,000 MW and
production of ~ 100 MTPA from captive Coal Mines
Strong well capitalized Balance Sheet supported by Cash
flows from operating assets
Largest integrated Power and Coal Resources Company in India – Set to
Capitalize on Opportunities in Power & Coal
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
Hydro Projects
(672
( MW)) Project
j No. Capacity
p y (MW)
( )
Operational
Coal-based Power Coal based* 3 5,760
Projects
Gas-based Power Hydro Project Solar 2 140
(400 MW) Hydro Projects
Solar CSP
Renewable / Hydro (4,220 MW) Wind 1 45
((100 MW))
O
Coal Mines Rosa Coal Blocks 1 20 MTPA
(1,200 MW)
Chitrangi
(3,960 MW) ~6,000 MW of operational capacity
Solar PV
(40 MW) Sasan UMPP worlds largest integrated
project operational
Tilaiya 20 MTPA coall mine
i h has started
t t d
Sasan
(3,960 MW) production
Butibori (3,960 MW)
(600 MW)
ation
Project No. Capacity (MW)
nder
Wind Coal based 3 11 880
11,880
Projects un
implementa
(45 MW)
Gas based 1 2,400
Samalkot
(2,400 MW) Hydro 1 700
Krishnapatnam Coal Blocks 2 45 MTPA
(3,960 MW)
Operating Projects ~ 15,000 MW capacity under
implementation and development
Projects Under Construction
~ 100 MTPA of coal production – largest
Projects Under Development private sector coal producer (incl 30
MTPA from Indonesian Mines)
*One unit of Sasan to be commissioned in FY15
India focussed generation portfolio - well diversified by fuel type, offtake and location
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
Power Portfolio Confidential
Operating Portfolio with unique strengths
Rosa-1200 MW Butibori-600 MW Sasan UMPP-3,960 MW Renewable-~200 MW
¾ Assured returns ¾Assured returns with ¾3,300 MW operational; ¾ Power tariff - ~Rs.6
with performance performance Implementation of last & to Rs 18 /kWh
incentives incentives 6th Unit at advanced
stage of completion ¾ Long term off-take
¾ Long term off-take
ff ¾ Long term off-take
ff agreement with
agreement with Uttar with Reliance Infra – ¾ Long term off-take Reliance Infra-
Pradesh – a high Mumbai Distribution agreement with 7 states Mumbai Distribution
deficit state Area – A high demand (13 procurers) in
load centre Northern India ¾ No payment risk
since power being
¾ Robust payment ¾No payment risk as ¾No payment risk – large sold to Reliance
security mechanism power being sold to no of procurers, Infra – Mumbai
with standby Letter Reliance Infra – standby Letter of Credit distribution and
of Credit (LC) and Mumbai Distribution (LC) and escrow cover subsidiary of NTPC
Escrow cover Area ( NVVN)
ConfidentialProven Track record of execution capabilities
p
Rosa 1200 MW
Project commissioned 4 months ahead of
schedule
Meritorious award by MOP for “Early
Completion of Thermal Power Project
Solar PV 40 MW
Constructed in record 129 days
Butibori 600 MW
First unit synchronized in just 21 months
S
Sasan 3,960
3 960 MW+20
MW 20 MTPA Coal
C l Mine
Mi
Mine development in record time for any
green-field mine in India
Three units commissioned in 4 months
Setting benchmarks in project execution
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY 11Demonstrated Sound Operational
p Performance 1,200 MW Rosa: Operational Performance
40 MW Solar PV: Operational Performance
Robust performance of operating projects
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY 12Coal Resources Confidential
One of the Largest portfolio of coal resources in the private sector
Two billion tonnes coal reserves in India with
Set to become a ~100 MTPA
9
target production of 65 million tonnes
per annum (MTPA) coal resource company
Sasan coal mines
(Moher, Moher Amlori
Ext. and Chhatrasal)
Reserves: 707 MT
Production: 25 MTPA o Sasan coal mines: 25 MTPA
o Tilaiya coal mines: 40 MTPA
Tilaiya coal mines o Indonesian mines: 30 MTPA
(Kerandari B&C)
Reserves: 1,230 MT
Production: 40 MTPA
Two billion tonnes coal resources in Indonesia with
target production of 30 million tonnes per annum
Confidential 14► 240 tonne dumper
p
20 MTPA Sasan Coal Mine Operational
► 61 m3 bucket Dragline
► 42 m3 Rope Shovel
► 42 m3 Front End Loader
9 Coal Production commenced
9 Best and latest mining equipment
9 Largest fleet of 240 T dumpers in India
9 Largest Dragline to operate in India
Unmatched resource utilisation and productivity
ConfidentialStrong Growth Pipeline of Projects Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
Largest Pipeline of Power Projects and Coal Mines
Chitrangi / Sasan
Expansion
4,000 MW
Tilaiya UMPP –
4,000 MW Renewable-
1,000 MW o Sasan coal
mines: 25
MTPA
o Tilaiya coal
Hydro- mines: 40
Krishnapatnam 5,292 MW MTPA
4,000 MW Hydro – 5,300 MW o Indonesian
mines: 30
MTPA
Over 15,000 MW of Power Capacity & ~100 MTPA of Coal Production
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLYRobust Financials Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
Strong Financial Track Record
Total Income $ Mn Net Profit $ Mn
1000 881 924 200 169 171
800 145
150 127
114
600 461 100
400 320
50
200 141
0
0
FY 10 FY11 FY12 FY13 FY14
FY 10 FY11 FY12 FY13 FY14
Net Profit $ Mn
Total Income $ Mn
Total income has grown at CAGR of 46% Profit has grown at CAGR of 8%
EBIDTA $ Mn EBIDTA Margin
350 319 40%
37%
300 286
35%
250 35%
31%
200
30%
150
104
100
25%
38 22%
50
0 20%
FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14
EBIDTA $ Mn
M EBIDTA Margin
M i
EBIDTA has grown at CAGR of 70% EBIDTA Margins have shown significant expansion
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLYStrong Balance Sheet
Net Worth $ (Mn)
Gross Fixed Assets $(Mn) 3250
3400
10000 3100
3200
7677 2933
8000 6546 3000
6000 2800 2667
4717
4000 2600
2710 2350
1524 2400
2000
2200
0
2000
FY10 FY11 FY12 FY13 FY14
FY10 FY11 FY12 FY13 FY14
Gross Fixed Assets$( Mn)
Net Worth $(Mn)
High Net worth to support future pipeline of projects
Book Value Per share $
1.20 1.16
1.11
1.10 1.05
1.00 0.95
0.90
0.80
0.70
FY11 FY12 FY13 FY14
Book Value Per share $
Book value continually improving
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLYHuman Capital – Our Strength
Young
Y
1,800+ Workforce
Employees Average Age 30
years
Rev/Empl
Productivity
US$ 0.5 Mn
“People are our Real Assets”
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY 21Shareholding
g Pattern
% of total
Category
shareholding
h h ldi
Promoters 74.98
FII 6.46
Indian Financial Institution 4.33
Public 11.32
Mutual Funds / Banks & FI 0.93
Bodies Corporate 1.98
Total 100.0
As on March 31, 2014
Largest shareowner family in the sector : 4 million shareholders
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY 22Committed towards sustainable development
Reliance CSR Policy
y
¾ Education & activities related to overall development of children
¾ Healthcare
¾Basic Public Infrastructure
¾Economic up-liftment/ Livelihood Creation
Awards & Recognition
Sasan Power won
GREENTECH CSR
Award in Silver
Category
Confidential DRAFT – FOR DISCUSSION PURPOSES ONLYThank You Confidential DRAFT – FOR DISCUSSION PURPOSES ONLY
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