Corporate Presentation 1
PTC: Vision and Core Values Vision To be a Frontrunner in developing a vibrant Power Market and striving to correct market distortions Core Values Transparency The Customer is always right Encouraging Individual initiative Continuous Learning Teamwork 2
PTC: Genesis & Objectives PTC India Ltd. (PTC), was established in 1999 by Govt. of India as a Public- Private Initiative Board with eminent persons from the Government and Industry Established with primary focus on promoting power trading to optimally utilize existing resources attract viable investments in the power sector on the strength of multi-buyer model creating a Power Market in India and the neighboring countries Promoted by public sector majors in the industry : NTPC, POWERGRID, PFC and NHPC 15 September 2015 Stock listed on BSE and NSE since 2004; widely held by institutions 3
PTC: Shareholding FIIs 28% Others 23% Promoters 16% Insurance Cos. 17% As on 31.03.2015 Mutual Funds 15.40% FIs/Banks 2% NTPC India s largest thermal power generator PFC Development Financial Institution dedicated to the power sector Promoters POWERGRID India s Central Transmission Utility NHPC Largest Hydroelectric power generator in India Diversified shareholding Board with eminent persons from Government and Power Sector Professionally managed 4
PTC: Board of Directors Mr. Deepak Amitabh Ms. Jyoti Arora Mr. Ajit Kumar Mr Arun Kumar Dr Rajib K Mishra Mr. A. K. Agarwal Mr. K. Biswal Mr. Ravi P. Singh Mr. D. P. Bhargava Mr. Hemant Bhargava Mr. Anil Razdan Mr. Dipak Chatterjee Mr. D. Swarup Mr. H. L. Bajaj Mr. S. Balachandran Mr. Ved Kumar Jain Chairman and Managing Director Director (Jt. Sec., Ministry of Power) Director (Commercial & Operations) Director (Finance) Director (Marketing and Business Development) Director (Nominee of PFC) Director (Nominee of NTPC) Director (Nominee of POWERGRID) Director (Nominee of NHPC) Director (Nominee of LIC) Independent Director (Former Secretary, Ministry of Power) Independent Director (Former Secretary, Ministry of Commerce) Independent Director (Former Secretary, Budget, Min. of Finance) Independent Director (Former Chairman, CEA / Former Member, APTEL) Independent Director (Former-Addl. Member, Ministry of Railways) Independent Director (Former President of ICAI) 5
PTC: Milestones Signed Agreements for Tangsibji HEP in Bhutan; Long Term Share~40% of total volume Export of power to Bangladesh 2014 2015 PFS Listed on NSE and BSE; 2011 Started PTC Retail for HT/industrial consumers 2013 2009 Established PTC Energy Ltd.; 2007 Established PTC Financial Services 2004 Listed on NSE and BSE 2002 Commencement of Cross Border Trade 2001 Commenced sustained Business Operations 1999 Incorporated 6
PTC: Capability Profile Power Trading Domestic OTC market; Short/Medium& Longterm trades (utilities) Retail (Open Access consumers) Cross Border trade An Integrated Energy Player Investments Early stage support as Equity Investor / codeveloper PTC India Financial Services Ltd. Renewables / Energy Efficiency Promoting Renewables through models like Bundling Energy efficiency implementation Advisory Services Fuel Intermediation Tie up fuel from international markets Sale of fuel in domestic market PTC Energy Limited * - Investment related business primarily through subsidiaries 7
Capability Profile contd Pan India Presence Trading Volume in FY15 Power Purchase Agreements Success in Case-1 Bidding Power Portfolio Management Relationship with all utilities in the country - Currently trading with utilities in 27 States/UTs More than 400 clients in Retail segment ~5300 MW (37,137 MUs) - ~2970 MW in short-term and ~2330 MW in long-term * 27% of Power Exchanges volume contributed by PTC Total PPAs more than 11,000 MW. Sale tie ups: more than 7,500 MW (including Cross Border Sales) With domestic and international developers and covering all major sources of generation Total LOI placed with PTC ~4300 MW PPA signed out of above ~2300 MW Managing complete power portfolio of various States/Utilities Jharkhand, Himachal Pradesh, Chhattisgarh, NDMC, Tripura etc. * - Converted at 80% PLF 8
Cross Border Trading Bhutan Long-term agreement for purchase of power from Chukha (336 MW), Kurichhu (60 MW) and Tala (1020 MW) power plants 4,966 MUs in FY2015 Annual Revenue for Bhutan - ~ INR 1082.50 crore (~USD 172 million at INR USD conversion ratio of 63) Long Term agreement with Tangsibji Hydro Electric Ltd for purchase of power from 118 MW Nikachhu HEP to be commissioned in 2019. Executed Back-to Back PSA with Assam Power Distribution Co. Ltd Nepal India- Nepal power trade is at a moderate level 155 MUs through PTC in FY2015 Power Sale Agreement (PSA) signed with Nepal Electricity Authority (NEA) for export of 150 MW power on long-term basis Bangladesh PTC commenced supply of 250 MW for medium-term (3 years) PTC uniquely placed at the centre to contribute more to cross-border power trade 9
PTC: Growth 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 14,000 12,000 10,000 8,000 6,000 4,000 2,000 About 237 BUs traded since inception 0 1.6 4.2 11.0 8.9 10.1 9.5 9.9 13.8 18.2 24.5 24.3 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY14 FY15 Total MUs traded 6,529 7,773 Revenues (INR Crore) 8,999 7,650 Trading Volume (Billion Units) 8,857 11,511 13,082 FY09 FY10 FY11 FY12 FY13 FY14 FY15 28.6 About 81,000 crore (USD 13 billion) worth of electricity traded since inception 35.1 37.1 10
PTC India Financial Services (PFS): Investments in Energy Value Chain Systemically Important Non Deposit Taking Non-Banking Financial Company Classified as Infrastructure Finance Company (IFC) by Reserve Bank of India 2010 Current Debt portfolio of ~Rs. 6,700 crore with cumulative debt sanctioned of more than Rs 10,000 Cr Diversified portfolio in the Energy Business Uniquely positioned as a niche player in renewable financing space (more than 40% of our investment portfolio) 12,000 10,000 8,000 6,000 4,000 2,000 - Operational Highlights (INR Cr.) FY09 FY10 FY11 FY12 FY13 FY14 FY15 Cumulative Debt Sanctioned Loan Assets Outstanding 11
PFS: Investments in Energy Value Chain Distribution of Projects Across the Value Chain Cumulative Debt Sanctioned Loan Assets outstanding Others 18% Hydro 9% Thermal 30% Hydro 9% Others 21% Thermal 32% Renewable 43% Renewable 38% Equity Investment Highlights Major Projects Power Exchange 700 MW Ind Barath Energy (Utkal) Ltd. project execution is in advanced stage and is expected to be commissioned in current year 1320 MW East Coast Energy Pvt. Ltd. Construction activities are in progress 99 MW RS India Wind Energy Pvt. Ltd. Phase 1 (41.25 MW) commissioned IEX - India s first online electricity trading platform Currently holding 5% after divesting part stake in the company in FY11 & FY12 12
PTC Retail and other Integrated Solutions Facilitating competitive supply of power and integrated solutions to bulk consumers; large corporations like Airports Authority of India and Delhi Metro Rail Corporation added in its portfolio PTC has been granted funds from Prosperity Fund by the British High Commission on behalf of UK Govt. for jointly implementing the concept of supply licensee Providing project management consultancy for street lightning projects in two identified circles of Andhra Pradesh Providing advisory solutions to petroleum refineries and other bulk consumers for enhancing grid transmission capacity to enable them reap market benefits through Open Access 13
PTC Group in Renewables Financing development of Renewable power projects through its subsidiary PTC India Financial Services Facilitating power sale from renewable power projects to power utilities (obligated entities) through trading arrangements Facilitating scheduling of solar power, first of its kind transaction, for 750MW solar projects set up under the VGF scheme issued by SECI and MNRE PTC signed an MoU with MNRE & NIWE, along with NTPC, POWERGRID, PFC, IREDA and GPCL for undertaking development of offshore wind power project 15 September 2015 14
Corporate Social Responsibility Activities PTC to continue its contribution towards its stakeholders and society at large Major thrust areas are: Environmental sustainability Sanitation / cleanliness and Skill development etc. Initiatives taken on Women empowerment and skill development programmes Contributed to The Prime Minister s National Relief Fund towards relief for Nepal earthquake affected people 15
Way Forward Focus on balanced development of trading business portfolio for sustained growth Comprehensive strategy to maintain and enhance presence in multiple business segments like long term, medium term and short term sales to utilities as well as to the retail (Direct-to-Business) segment Long term volume is expected to move to 50% plus of total trading volume in 2-3 years from ~40% in 2014-15 Group policies for effective management of Risks and Resources Well positioned to benefit from improvements in policy & regulatory environment; strong balance sheet, robust cash flows, experience from a 16-year operating history PTC to continue to consolidate its leadership position and maintain growth; subsidiaries to give synergies 16
Thank You Visit us at www.ptcindia.com 15 September 2015 17