…Message Box 1inside the Tata Steel plant which is based on blast furnace and coke oven gas. •...

…Message Box ( Arial, Font size 18 Bold)…Message Box ( Arial, Font size 18 Bold) 1


Annual General Meeting

Praveer Sinha

CEO & Managing Director

27th July 2018


Agenda

• About Tata Power

• Financial Performance and Statistics

• Significant Developments in the Sector

• Strategic Intent and Existing Investments

• Sustainability

• Awards and Recognition


About Tata Power


India’s Leading Integrated Power Company

Fuel & Logistics• Stake in Indonesian coal

mines

•Assurance of fuel supplyfor all the operationalprojects

• Integrated coal logisticsmanagement throughstate-of-the-art Capesized ships

Generation•10,757 Megawatt of

installed capacity as on31st Mar‘18 with 32% inthe form of clean andgreen generation

•287 MW of new capacityunder execution in Indiaand internationalgeographies

Distribution

•Mumbai– Over 6.8 lakh

consumers•Delhi

– Over 16.5 lakhconsumers

•Ajmer– Over 1.34 lakh

consumers

Value Added Business

• TPSSL further fortified itsmanufacturing capabilities thisyear and produced over 220 MWcells and 300 MW of modules

•PM/OM service contracts forabout 4300 MW

• TPTCL was India’s 3rd largestpower trading company duringFY18

Transmission•Mumbai:

1,200 Ckm network 21 receiving stations

•Powerlinks:

2,328 Ckm long line connecting Tala hydro project–Bhutan to North India

Coal production at KPC, BSSR and AGM Indonesia during FY18 was 66 MT same as in FY17

FY1

8

The renewable capacity grew to 2,349 MW by the end of FY18

110 kV GIS, 33 kV GIS & 250 MVA ICT at Versovareceiving station commissioned

Ajmer Distribution Franchisee awarded

Consumers added:- 26,000 in Mumbai- 70,000 in Delhi

Strategic Engineering Division was sold to Tata Advanced Systems at an enterprise value of ₹ 2,230 crore


Financial Performance and Statistics


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 SEDCGPL 4,150 Ajmer Distribution Real EstateMaithon 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


Improvement in Operating Profit

Standalone - Operating Profit (` crore)Consolidated Operating Profit (` crore)

57016061

FY17 FY18

6% Improvement

Operating profit increased mainly due to higher contributionfrom Renewable Business and Regulated Business

21182337

FY17 FY18

10% Improvement

Operating profit increased mainly due to higher contributionfrom the Regulated Business and favorable tariff order forJojobera


1049

1287

FY17 FY18

23% improvement

The Standalone PAT before one time exceptional loss# washigher

PAT Comparison

Standalone PAT (` crore)Consolidated PAT (` crore)

17511577

FY17 FY18

10% decline

While the consolidated operating profit and share of profitfrom Associates/JVs increased, the PAT (before one-timeexceptional items*) reduced due to higher finance cost anddepreciation

* Mainly on account of a reversal in the impairment in the value of the Indonesian coal investment# Mainly on account of an impairment of the investment in CGPL


Q1FY19 results

217

1134

FY18 Q1 FY19 Q1

Standalone PAT (` crore)

406

1735

FY18 Q1 FY19 Q1

328% improvement 422% improvement

Consolidated PAT (` crore)

Renewables continue to report strong EBITDA of ₹580 crore despite lower EPC sales. All other subsidiaries & Joint Ventures continuedto 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 croreas compared to ₹1,850 crore.


Tata Power Stock Performance

84.281.0 80.6 81.9

79.1 77.8

84.8

94.7 93.9

89.1

84.6

79.4

88.2

81.2

73.170.9

2330

2221 2226

23242261

2206

23492321

23822319

2223

2126

2238

2129

1947 1945

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2200

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2600

2800

3000

0.0

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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

Tata Power

Power Index

(`)Tata Power Share Price* Power Index BSE

During FY18, Tata Power’s stock has performed better than the S&P BSE Power Index

* As on 26h July’18


Significant Developments in the Sector


Sectoral Developments

2

4

6

8

10

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Plunging Solar Prices

• India’s solar tariffs have dropped significantly due to a sharpdrop in equipment prices and rising competition in thedeveloper space.

• However, the tariffs rose by 10-20% in H2FY18 due to theimpact of proposed solar safeguard duty on solar imports

Solar tariff (`/kWh)

2.44

Reduction in solar tariffs is a welcome sign from aconsumer and Discom perspective. Your Company sees thisas an opportunity to add viable solar power solutions.

Extension of waiver of transmission charges and losses on power from solar and wind power plants

• MoP issued guidelines to waive the levy of inter-statetransmission charges and losses on transmission ofelectricity through the inter-state transmission system

• This will be applicable to all wind and solar projectscommissioned till 31st March, 2022

This development is expected to further encourage the

renewable sector in India and help to move towards

realization of the Government’s 175 GW target


Sectoral Developments

SAUBHAGYA – Pradhan Mantri Sahaj Bijli Har Ghar Yojana

• Targeted at providing last mile connectivity and electricityconnections to all households in rural and urban areas

• Aims to provide solar PV systems for un-electrifiedhouseholds located in remote and inaccessible areas

• To connect 40 million households through this scheme by theend of 2018

The scheme for universal household electrification isexpected to increase the demand for power in thecountry and, thereby, increase the utilisation ofgeneration assets.

Pan-India Deployment of Smart Meters

• The UDAY Scheme aims to reduce AT&C loss levels to 15% byFY20 through deployment of Smart Meters

• A smart, automated metering system reduces meter data-entry errors and costs by removing the need for manualmeter reading

Smart Meter installation will help reduce commercial

losses of Utilities, enhance revenues, and serve as a

crucial tool in power sector reforms.


Strategic Intent and Existing Investments


Sector Outlook & Trends - Shift to Integrated Solutions


Tata Power Strategic Intent 2025

• These targets have been arrived at after considering the growth opportunities in different segments of the powersector 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


Coastal Gujarat Power Limited

• CGPL operates India’s first UMPP and isamongst the largest power stations in thecountry and is operating at benchmarklevels of efficiency• The Supreme Court has rejected the

Company’s claim on the grant ofcompensation due to change in law orforce majeure event• Your Company is in discussions with

procurers and lenders to find anappropriate resolution• All efforts are underway to source coal at

lower costs to reduce the under recoveryof Mundra UMPP

CGPL has been a recipient of the CBIP award for ‘Best Performing Utility in Thermal Power Sector’

FY18 FY17Availability (in %) 82.8 82.9

PLF (in %) 74.7 75.3Operating Profit

(in ` Cr)(15) 536


Coal Companies

• Tata Power, through its subsidiaries, holdsa 30% stake in PT Kaltim Prima Coal (KPC)and a 26% stake in PT BaramultiSuksessarana Tbk (BSSR); both projectsare located in Indonesia

• These are strategic assets to hedgeimported coal price exposure at CGPL andform an important part of the supply chainfor its coal off-take requirements.

FY18 FY17Coal Production

(in MT)66 66

Operating Profit (in ` Cr)

8,501 5,060


Maithon Power Limited

Maithon Power Limited (MPL), a joint venture of Tata Power & Damodar Valley Corporation, operates a 1050 MW (2X525 MW units) inNirsa 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

FY18 FY17Availability (in

%)86.7 91.7


(in ` Cr)644 803


Jojobera

Tata Power operates a 427.5 MW coal-based thermal generation station at Jojobera – 240 MW contracted with the Jamshedpur discomand 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.

FY18 FY17

Availability (in %) 97.2 92.7

PLF (in %) 79.5 75.4Operating Profit (in

` Cr)240 194


Trombay Thermal Power Station

• Trombay PPAs will expire on 31st March 2019 and the Company is pursuing options for tie-up of this power

FY18 FY17

Availability* (in %) 93.6 92.2PLF* (in %) 77.3 79.1


709.2 636.7

* Excluding unit 6


Mumbai Hydros

• 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 inservice



247.1 252.7


Industrial Energy Limited

• 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 steelproducer



(in ` Cr)209 227


Tata Power Delhi Distribution Limited

• 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)

47.6

45.4

40.9

35.4

31.1

22.020.4

18.717.0

15.3

12.5 12.0 11.5 11.0 10.5 10.0

47.8

44.9

33.8

26.5

23.7

18.616.7

15.214.2

11.5 10.7 10.4 9.98.8 8.6 8.4

FY

03

FY

04

FY

05

FY

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FY

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FY

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FY

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FY

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FY

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FY

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FY

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Target

Actual

AT & C Loss Reduction (%)FY18 FY17

Distribution Sales (in MUs)

8,634 8,270


1,012 855


Mumbai Distribution

• 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 whichthe city of Mumbai has the advantage of assured uninterrupted reliable supply of power.

FY18 FY17

Distribution Sales (in MUs)

4,393 4,977


519 583


Ajmer Distribution

• The Tata Power Company Ltd. successfully won the bid floated by Ajmer Vidyut Vitran Nigam Limited (AVVNL) for appointment of aDistribution 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 peakdemand is 110 MW.

FY18 FY17Distribution

Sales (in MUs)303 N.A.


(0.95) N.A.


Mumbai Transmission

• The Transmission assets, which are apart of the Mumbai License Area, had agrid availability of 99.48% as against theMERC norm of 98%.

• Availability was maintained at high levelsby proactive actions taken based onpreventive maintenance practices,effective condition monitoring andjudicious planning and execution ofplanned outages.

FY18 FY17Availability (in

%)99.48 99.63


539 438


Powerlinks

• Powerlinks Transmission Limited (PTL) isa joint venture between the Tata PowerCompany Limited (51%) and Power GridCorporation of India Limited (49%)

• The company operates a transmissionline between Siliguri in West Bengal toMandola in Uttar Pradesh (near NewDelhi), covering a distance of 1166 kms.

• The Project is in successful commercialoperation since 2006.

FY18 FY17Availability

(in %)99.89 99.64


143 136


Renewable Business – TPREL, WREL & Standalone Assets

• TPREL, a 100% subsidiary of Tata Power isthe renewable energy arm of theCompany

• TPREL acquired WREL in September 2016

•WREL is a fully owned subsidiary ofTPREL and has one of the largestoperating solar portfolios spread acrossIndia. It has an operating capacity of1,010 MW

• The Renewable Business’ overallcommissioned capacity added up to2,064 MW at the end of FY18. 226 MWcapacity was commissioned during FY18

675 MW TPREL

379 MWStandalone

assets

1,010 MW WREL


(in %)98 97.4


1,783 1,538


• Tata Power Solar Systems Limited executed and commissioned several large projects across multiple states and delivered rooftopprojects 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

Tata Power Solar Systems Limited

TPSSL is India’s largest solar EPC and rooftop player

FY18 FY17Operating

Profit (in ` Cr)235 167


Haldia

• 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 remainingtraded through Tata Power Trading Company Ltd.

FY18 FY17Availability (in %) 83 97.7

PLF (in %) 79 79.2


79 21


Itezhi Tezhi Power Corporation - Zambia

• 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.

FY18 FY17

Availability (in %) 99.3 99.9


550.2 402.8


Cennergi – South Africa

• Cennergi (Pty) Ltd, is Tata Power's50:50 joint venture with ExxaroResources (South Africa)

• Cennergi portfolio comprises of 230MW wind generation capacity throughits 2 wind farms at TsitsikammaCommunity Wind farm and AmakhalaEmoyeni Wind Project

Cennergi windfarms are amongst the largest in Africa and have recorded good operating performance


(in %)98.6 98.7


427 263


Dagachhu Hydro Power Corporation – Bhutan

• 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

FY18 FY17

Availability (in %)

100 100


83.8 91.7


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 iscurrently not in operations.

Sale of power from the plant may face challenges due to weak European and Turkish power markets


Sustainability


Sustainability, Community Relations – 7 Key Thrust Areas

Tata Power has spent ` 14.71 crore as against the Companies Act requirement (2% of Net profit) of ` 13.71 crore.

Tata Power has reached out to over 5.5 lakh beneficiaries through its initiatives

Vidya

Education

Samridhi & Daksh

Livelihood & Employ-ability

Swach Jal

Drinking Water & Irrigation

Arogya

Health & Sanitation

Sanrachna

Social Capital and

Institution Building

Samarth

Financial Inclusivity

Akshay Renewable

Energy


Community Relations Highlights

These are women representatives who are the brand ambassadors for TPDDL’s programs under SAATHI. These ABHAs are engaged inreaching out to the residents of JJ clusters in Delhi in order to maximize the visibility of community initiatives.

Project ABHA, Delhi



The CSR programs had a coverage of 278 villages. 336 schools were covered benefiting 48,000 school children

Coaching Class, Kalinganagar



Health programs were implemented in 211 villages covering 2 lakh beneficiaries

Health Camp for Women, Mundra


Awards and Recognition


Awards and Recognitions

Tata Power won the ‘Best Risk Management Framework & Systems – Power’ at CNBC TV18 The India Risk Management Awards

Haldia division received Prashansa Patra from the National SafetyCouncil

Tata Power’s Jojobera teams won big at the National Convention on Quality Concepts (NCQC) 2017

Tata Power’s joint venture Powerlinks Transmission Limited received Best in Class T&D Infra Asset at the 11th Enertia awards


Website: www.tatapower.com

Email ID: [email protected]

Contact No: +91 22 6665 8888

…Message Box 1inside the Tata Steel plant which is based on blast furnace and coke oven gas. •...

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