Reliance Power Ltd Investor Presentation - Confidential

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Reliance Power Ltd Investor Presentation - Confidential
Reliance Power Ltd
               Investor Presentation

Confidential
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
Reliance Power Ltd Investor Presentation - 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 Power Ltd Investor Presentation - Confidential
Reliance Group
             p – Key
                   y Businesses

               Financial Services        Infrastructure                Power       Communication

          ƒ Asset Management         Power Sector            Power Generation   ƒ Wireless
                                     ƒ Distribution          Thermal

          ƒ Life Insurance           ƒ Generation            ƒ Coal             ƒ Enterprise
                                     ƒ Transmission          ƒ Gas
                                                             Renewable
          ƒ General Insurance        Urban Transport                            ƒ Telecom Infrastructure
                                                             ƒ Hydro
                                     ƒ Road
                                                             ƒ Solar
          ƒ Commercial Finance       ƒ Metro                                    ƒ Direct to Home
                                                             ƒ Wind
                                     ƒ Airports
                                                             R
                                                             Resources
          ƒ Broking & Distribution   Cement                                     ƒ Worlds largest submarine
                                                             Coal Mining
                                                             ƒ India              cable network
                                     EPC Services - In all   ƒ Indonesia
                                     infrastructure areas    Coal Bed methane

    Reliance has played a key role in nation building with strong presence in Core Sectors
Confidential                                                                                                 Slide 4
Reliance Power Ltd Investor Presentation - Confidential
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 Ltd Investor Presentation - Confidential
Reliance Power - Overview

Confidential      DRAFT – FOR DISCUSSION PURPOSES ONLY
Reliance Power Ltd Investor Presentation - Confidential
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
Reliance Power Ltd Investor Presentation - Confidential
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
Reliance Power Ltd Investor Presentation - Confidential
Power Portfolio

Confidential
Reliance Power Ltd Investor Presentation - 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)

Confidential
Proven Track record of execution capabilities
                                   p

                                                        ‰   Rosa 1200 MW
                                                             ƒ Project commissioned 4 months ahead of
                                                               schedule
                                                             ƒ Meritorious award by MOP for “Early
                                                               Completion of Thermal Power Project

                                                        ‰ Solar PV 40 MW
                                                           ƒ Constructed in record 129 days

                                                        ‰ Butibori 600 MW
                                                            ƒ First unit synchronized in just 21 months

                                                        ‰ S
                                                          Sasan 3,960
                                                                3 960 MW+20
                                                                      MW 20 MTPA Coal
                                                                                    C l Mine
                                                                                        Mi
                                                            ƒ Mine development in record time for any
                                                              green-field mine in India
                                                            ƒ Three units commissioned in 4 months

                            Setting benchmarks in project execution

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Demonstrated 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                        12
Coal 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
Confidential
Strong 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 ONLY
Robust 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 ONLY
Strong 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 ONLY
Human 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               21
Shareholding
           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                    22
Committed 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 ONLY
Thank You

Confidential    DRAFT – FOR DISCUSSION PURPOSES ONLY
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