Corporate Presentation. March 2012

Transcription

1 Corporate Presentation March 2012

2 Disclaimer This presentation and the accompanying slides (the Presentation ), which have been prepared by PTC India Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the power industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 2

3 Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 3

4 Overview Genesis of PTC PTC Today Set up in 1999 at the initiative of Government of India with the following objectives: Promoting power trading to optimally utilize the existing resources; PTC s business includes Short term, Medium term, Long term (including cross border) power trading, banking, trading of power through Power Exchanges and Power Tolling Facilitate development of power projects under private sector Development of power market for market based investment in the Indian Power Sector; and Promote exchange of power with neighboring countries. Promoted by industry participants with a credible track record and significant sector experience NTPC - India s largest thermal power generator POWERGRID - India s largest Central Transmission Utility (CTU) PFC Development Financial Institution (DFI) dedicated to the power sector NHPC - Large hydroelectric power generator in India Played a pivotal role in creation of power market in India Sale of MUs increased from 1,617 MUs* in FY 2002 to 24,325 MUs in FY 2012 Revenue and PAT for FY INR mn and INR 1205 mn respectively PTC has now expanded its business operations and moved towards an Integrated Energy player PTC India Financial Services Ltd PTC Energy Limited Direct investments in other identified projects Fuel Intermediation Power Tolling Arrangements * MUs: Million Units 4

5 Shareholding Pattern As on Promoters PGCIL, NTPCL, NHPCL, PFCL (each having share of 4.07%) Source: PTC data 5

6 Proven Track Record of Value Creation More than 136 BUs traded since inception Set up in 1999 at the initiative of Government of India FY 2000 Power trading business began operations 1,617 MUs traded FY 2002 Listed on BSE and NSE since 2004 IPO oversubscribed 43 times Market Cap.: INR 2,400 mn (US$ 47 mn*) FY 2004 *Based on the IPO price of INR 16 per share, # Based on BSE closing price of INR on March 30, 2009 ** Based on BSE closing price of INR as on March 30, 2012; 1 USD = INR ( ) (Source: Company data) Raised INR mn in early 2008 through QIP Raised INR 5000 mn in May 2009 Market Cap.: INR 15,908 mn (US$ 312 mn # ) FY 2009 Market Cap.: INR 18,111 mn (US$ 356 mn**) Market leader in trading of power: ~43% market share 24,325 MUs traded in FY 2012 FY 2012 Net Worth: INR mn (US$ 442 mn) in FY12 6

7 Uniquely Placed as an Integrated Energy Player Presence in Energy Value Chain Power Trading Leading Market Position Market maker Market leader in power trading with ~43% market-share Cross border trading with Bhutan and Nepal Co-promoter of India s First National Power Exchange (IEX) Direct Investments in Power projects Fuel Intermediation Power Tolling Arrangements Advisory Services Network of relationships Strong relationships with key industry participants GoI, Utilities and IPPs Provides an edge over our competitors in various business segments Relationships with marquee investors like Goldman Sachs and Macquarie Experienced Team Strong Performance Promoters with a credible track record and significant power sector experience Diversified Board with well known Independent Directors Professional and well qualified Management Robust financial performance till date Revenues CAGR of 15% (for last 5 years) Revenues for FY12 at Rs. 76,503 Cr, slightly lower from FY11 7

8 Indian Power Sector Scenario Year wise Energy Deficit Slippages in Five Year Plan Targets Key Highlights 5 th largest generation capacity (~200 GW, 4% of global power generation) A fair mix of Central, State and Private capacity Thermal dependent to a great extent Growth in demand for power outstripping the growth in generation and capacity addition High T&D and AT&C losses Power for All by 2012 a dream unfulfilled One Nation One Grid - Plan to establish an integrated National Power Grid in the country with about 37,700 MW of inter-regional power transfer capacity (current 28,000 MW) With facilitation of inter-regional transmission, trading activities are set to gain momentum and location constraint on generation capacity is expected to subdue Private sector s share in installed generation capacity increased from ~12 % to ~28% in five years Source: Planning Commission, CEA, Ministry of Power Huge investment of USD 300 billion required in the power sector 8

9 Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 9

10 Growth Strategy - Presence in Energy Value Chain Power Trading Short Term trading Medium Term trading Cross Border trading Banking Trading on Power exchange Long Term trading Power Tolling Subsidiaries, Associates and Investments PTC India Financial Services PTC Energy Athena Energy Ventures Teesta Urja Krishna Godavari Power Utilities Wind Power Project Chenab Valley Power Project Fuel Intermediation Long Term Arrangement to secure fuel Power tolling arrangements - to encourage additional generating capacities to come up Opportunities being explored with various strategic partners for acquiring coal assets Advisory Services Capture Greater Share Of Energy Value Chain By Diversifying Into Related Energy Businesses 10

11 Pioneer in Short Term Power Trading Market leader in power trading for more than a decade Traded volumes increased from 1,617 MUs in FY 2002 to 24,325 MUs in FY2012 Transactions cover most of the State Electricity Utilities in the country Business focuses on identifying parties with a surplus of power and parties with a deficit of power at particular times and for specific durations NORTHERN NEPAL BHUTAN NORTH EASTERN Participation in Competitive Bidding for sale/purchase of power by various utilities under Short Term/Medium Term Various products created to provide flexibility to its clients Round the clock power Evening or Morning peak/ Afternoon or Night off-peak power Specific time blocks for 6 to 18 hours Weekend or Holiday power WESTERN SOUTHERN EASTERN Facilitating trading of power under Day Ahead and Term Ahead Market through IEX/PXIL Energy Banking Short-term trade in all regions and with Nepal and Bhutan as well 11

12 Cross Border Trades with Bhutan and Nepal Bhutan Long term agreements in place for purchase of power from HE projects of Bhutan Chukha: 336 MW Nepal Marsyangdi 600 MW Kurichhu: 60 MW and Tala: 1,020 MW From the above projects, PTC purchased 5,275 MUs in FY 2012 (5,569 MUs in FY11) Nepal Signed an Memorandum of Agreement (MoA) with GMR for 600 MW Marsyangdi HE project PSA signed with NEA for export of 150 MW coal-based thermal power on long-term basis Bhutan (1416 MW) Chukha: 336MW Kurichhu: 60MW Tala: 1,020MW Active engagement in the up-gradation of Indo Nepal transmission interconnections for enhancement of power trade PTC is a member of Indo-Nepal Power Exchange Committee PTC supplied ~69 MUs to Nepal in FY12 (~46 MUs in FY11) Capacities available to PTC for cross border trades 12

13 Medium/Long term trading Strategizing to increase the volume and mix of Medium and Long term trading contracts To reduce volatility in trading volumes Entering into Long term PPAs with new IPPs and Captives with surplus capacity Investments into power projects to increase the trading volume PTC has entered into PPAs and MoUs to procure long term power PPAs initialed/ signed for 14,548 MW* MoUs signed for 14,625 MW* PTC has entered into PSAs/ MoUs to ensure long term sale of power States with PSA/ MoU signed IPPs with PPAs PSAs finalised for 5,550 MW* *As of 31 March, 2012 and iicludes cross border and power tolling also 13

14 Investments in Energy Value Chain: PFS Scope of business activities Incorporated in 2006 as 100% subsidiary of PTC India Ltd In 2007, Goldman Sachs and Macquarie bought stake as strategic investor and in FY 11, PFS accessed capital market by IPO of company Started its business operations in late 2007 by taking 26% equity stake at par in Indian Energy Exchange as co-promoter. Received Infrastructure Finance Company (IFC) status in August 2010 Investment Spectrum Greenfield, brownfield projects and provide expansion on ongoing basis to companies engaged in identified target sectors Power Exchange Biomass projects Wind projects Coal projects Term financing Operational Highlights (INR mn) To provide Investment and Financing solutions for the broader Energy Value Chain 14

15 Investments in Energy Value Chain: PFS Distribution of Projects Across the Value Chain Equity Investment Highlights Power Exchange IEX - India s first electricity trading platform Currently holding 5% stake after divesting its part stake in the company in FY11 & FY12 Major Projects 14.66% stake in 1,320 MW thermal project in Andhra Pradesh 20.55% stake in 700 MW thermal project in Orissa 37% stake in MW wind project in Maharashtra MW is commissioned 17.84% stake in 1,000 MW thermal project in Andhra Pradesh To provide Investment and Financing solutions for the broader Energy Value Chain All data updated up to 31 st March

16 Investments in Energy Value Chain (Cont d.) Business Description Investment and Stake Remarks ATHENA ENERGY VENTURES (ATHENA) Power project developmental company across generation, transmission and distribution assets Subscribed for 20% equity stake in Athena for a commitment of INR 1,500mn Invested INR 1500 mn Athena won a bid to construct a 3000 MW Hydro plant in Arunachal Pradesh Developing 2 coal based thermal power projects in Andhra Pradesh and Chattisgarh 3840 MW TEESTA URJA LIMITED (TEESTA URJA) 1,200 MW hydro project based in Sikkim, India 11% stake in Teesta Urja for an investment of up to INR 1,414 mn Invested INR 1,414 mn Achieved Financial Closure Expected to be commissioned by FY 2014 KRISHNA GODAVARI POWER UTILITIES 63 MW imported coal based project in Andhra Pradesh Amount approved by Board INR 400 mn Holds 34.66% stake with an investment of INR mn Promoter s stake 65.34% WIND POWER ASSETS 6 MW capacity wind power project in Maharashtra Direct execution of project by PTC Project cost of INR 375 mn Commissioned in March 2008 Agreement with MSEB for purchase of power CHENAB VALLEY POWER PROJECTS JV company for implementation of Pakal Dul and other hydroelectric projects with installed capacity of 2100 MW Invested INR 1 mn Amount approved by board INR 7 mn PTC will have 2 % share, rest divided equally among NHPC and JKSPDC 16

17 Fuel Intermediation PTC Energy Limited (PEL) Acting as fuel aggregator Purchase of imported fuel and onward sale to power plants and to PTC as well for plants under its tolling arrangements Depending upon Customers needs, PEL can arrange imported coal of different grades from different destinations on competitive basis Coal can be supplied under different structures i.e. on Spot, Short term, Medium Term or Long Term basis Exploring avenues for adding new suppliers and buyers under its umbrella of fuel intermediation on competitive basis Purchased and sold 424,061 MT of imported fuel during the FY (280,492 MT in FY11) Joint venture partner for development of energy assets Undertaken a strategic investment of Rs crore for development of wind farm in Tamil Nadu 17

18 Power Tolling Arrangements Power Tolling Arrangement Purchase of coal at competitive prices PTC to procure fuel (coal) for the power plant and pay an energy conversion charge to IPP The power so converted is to be owned and traded by PTC Supply of coal to IPP as per PTA Power Tolling Agreements ( PTA ) for 500 MW (in AP) with 2 power projects already in place Meenakshi Energy Pvt. Ltd. 150 MW Simhapuri Energy Pvt. Ltd. : Phase MW and Phase MW Both the projects are based on imported Coal and PTC needs to arrange for the imported coal UTILITIES Purchase of power after paying conversion charge Sale of power at market prices 18

19 PTC Group in Renewable Energy Facilitating solar power sale from solar developers to solar power consumers (obligated entities) through mutually beneficial trading arrangements Designing solar power product through innovative bundling solutions Advisory for development/marketing of solar projects; tariff modeling/forecasting and others Facilitating various entities in meeting their Renewable Purchase Obligations (RPOs) through sale of Renewable Energy Certificates (RECs) Financing development of Renewable power projects through its subsidiary PTC India Financial Services Funding to Different Types of Renewable Projects by PTC Group Category No. of Projects Total Capacity (MW) Funding by PTC Group (INR Mn) Biomass Wind Solar Small Hydro Total Category-wise Capacity Funded as % of Total 19

20 Uniquely Positioned: Relationships Associations/Relationships Joint Ventures Government of India and various State Athena Power Projects Limited and IDFC Governments Partners in Athena Energy Ventures Limited Government of Bhutan, Nepal and Bangladesh Energy Commission, Ghana Central and State Public Sector Undertakings Financial Technologies of India Limited Partners in Indian Energy Exchange Goldman Sachs and Macquarie Strategic financial partners in PTC India Bureau of Energy Efficiency (BEE) Financial Services Limited Independent Power Producers Teesta Urja Limited Financial Institutions/Financial Investors Krishna Godavari Power Utilities Limited Indo Norwegian Program for Institutional Cooperation (INPIC), Norway NHPC & JKPDCL Chenab Valley Power Project USAID/United States Energy Association Leveraging on established relationships to diversify into new businesses and develop new relationships 20

21 Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 21

22 Key Financials Revenues (in INR mn) PAT (in INR mn) Key Highlights FY12 Maintained leadership position with market share of ~43 % PFS concluded sale of its part stake in IEX realized gain of INR 665 mn PTC-Retail established for facilitating HT/Industrial Consumer in Open Access, Power Exchange, Bilateral Trades, Renewable Energy, Customized Power and Captive Solutions Matched last year trading volume despite regulated supply to States delaying payments 22

23 Strong Board and Management Team Experienced and stable senior management team Senior Management Team Experience (yrs) Mr. T. N. Thakur Chairman and MD 38 Corporate governance structure Board of Directors (April 2012) Mr. T. N. Thakur Chairman and MD Mr. Deepak Amitabh Director 27 Dr. Ashok Haldia Director 31 Dr. Pawan Singh Director 29 Mr. Arun Kumar Director 35 Mr. Rajiv Kr. Mishra Executive Director 26 Mr. S. S. Sharma Executive Vice President 36 Mr. Rakesh Kumar Executive Vice President 30 Mr. R. C. Chaudhary Executive. Vice President 39 Mr. Harish Saran Executive. Vice President 24 Mr. P. Varshney Sr. Vice President 35 Mr. V. S. Bisht Sr. Vice President 27 Mr. Hiranmay De Vice President 24 Ms. Puja Mehrish Vice President 23 Mr. Pankaj Goel Vice President 20 Mr. Harjit Singh Ghura Vice President 31 Mr. S. C. Shukla Vice President 28 Mr. Deepak Amitabh Ms. Rita Acharya Mr. Akhilesh Mishra Mr. A.B.L Srivastava Mr. I. J. Kapoor Mr. M. K. Goel Mr. Ravi P. Singh Mr. Hemant Bhargava Mr. Ved Kumar Jain Mr. Dipak Chatterjee Mr. S. Balachandran Mr. Anil Razdan Mr. D. Swarup Mr. H. L. Bajaj Director Director Jt. Secretary MoP,GoI Director Jt. Secretary, MEA, GoI Director (Nominee of NHPC) Director (Nominee of NTPC) Director (Nominee of PFC) Director (Nominee of POWERGRID) Director (Nominee of LIC) Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director 23

24 Agenda PTC India - Overview Unique Business Model Key Financials and Strong Management Team Highlights 24

25 Highlights Maintained Leadership in Core Trading Business Steady Progress to emerge as an Integrated Energy Player Presence in Energy value chain by diversifying into related Energy Businesses Experienced and Strong Management Team 25