CESC Limited Powering India since 1899 January 2014 www.cesc.co.in - PowerPoint PPT Presentation

CESC Limited Powering India since 1899 January 2014 www.cesc.co.in 1 1

RP- Sanjiv Goenka Group Power & Media & IT & Carbon Black Retail Infrastructure Natural Entertainment Education Resources 2

RP- Sanjiv Goenka Group – Business Sectors Companies Business Sectors Power & Natural CESC - 4 th largest Private Power Utility Noida Power *- Private Discom in Resources Noida Integrated Coal Mining * - Pioneer in private sector Coal Mining Retail Retail Harrisons Malayalam – Largest 10% Plantation company in South India IT & Education Spencer`s Retail *- Pioneer in Carbon Black 19% Power & Natural organized food retailing in India Asset base Reources Rs. 25,000 crs+ 51% Phillips Carbon Black - Largest in Infratructure India & 8 th largest in world Carbon Black CESC Properties* - Showcasing East 19% India’s 1 st Specialty Mall Media & Media & Saregama India - Biggest collection Entertainment Entertainment of Indian Music 1% Open* – Weekly current affairs magazine IT & Education Firstsource Solutions - Among the top 3 pure play BPO companies in India 3 * unlisted

Financials of RP- Sanjiv Goenka Group companies (Rs. bn ) Gross EBIDTA Net Profit Current Promoter Institutional Revenues (FY`13) (FY`13) Market cap* Holding Holding (FY`13) CESC 53.20 14.20 6.18 55.00 52% 39% Firstsource Solutions 28.20 2.80 1.47 14.00 57% 22% Phillips Carbon Black 22.80 1.10 (0.20) 2.10 52% 21% Spencer`s Retail 13.50 (0.78) (2.10) - 100% - Noida Power Company 8.00 2.73 1.33 - 73% - Saregama India 1.75 0.28 0.11 1.40 55% 24% Harrisons Malayalam 3.47 0.25 0.02 1.00 50% 5% Integrated Coal Mining 3.70 0.36 0.22 - 100% - Crescent Power 1.24 0.62 0.20 - 100% - 4

CESC Snapshot • 4 thermal plants – Installed capacity of 1225 MW Generation • Meeting peak system demand of 1900 MW • Distribution Licensee for Kolkata & Howrah - 567 sq.km area, 2.7 Distribution mn consumers, 19500 ckt km T&D network , T&D loss 12% • Coal mining of 3 MTPA via associate company meets 50% of coal Coal requirement • Pursuing Organized retailing via Spencer`s Retail Retail • PAN India presence with 1 mn sqft and 130+ stores SPV`s • Risk free annuity income generating asset - Inaugurated “Quest”, Real Estate Eastern India`s first Luxury mall in Kolkata • Two IPPs of 600 MW each under construction in Haldia & IPPs Chandrapur. Generation capacity to double by 2014 • Recently acquired Fisrtsource Solutions Ltd Technology • Among the top 3 pure play BPO companies in India 5

6

Operating performance: Sales (MU) * Revenue (Rs. bn) 53.17 8577 8270 46.69 8135 41.72 7595 34.49 7206 32.00 6948 29.30 FY'08 FY'09 FY'10 FY`11 FY'12 FY'13 FY'08 FY'09 FY'10 FY`11 FY`12 FY`13 PLF%(excluding peaking Station) No. Of Consumers (Lakhs) 27.02 97% 97% 93% 25.86 88% 24.89 86% 85% 23.84 22.94 22.08 FY'08 FY'09 FY'10 FY`11 FY`12 FY`13 FY'08 FY'09 FY'10 FY`11 FY'12 FY'13 7

Profitability Debt / Equity Ratio PBT (Rs. Bn) 7.73 6.93 6.14 5.22 4.65 4.03 FY'08 FY'09 FY'10 FY`11 FY'12 FY'13 EPS (Rs.) Dividend History 45 50 70% 39 35 50% 33 30 40% 35% 25% FY'08 FY'09 FY'10 FY`11 FY'12 FY'13 FY'06 FY'07 FY`11 FY'12 FY'13 8

Growth plans Coal & Gas based IPPs on a PAN India basis Portfolio of Renewable projects (Solar, Wind, Hydro and MSW) Privatization of Distribution Franchisee 9

600 MW Chandrapur TPP, Maharashtra  First Independent Power Plant (IPP) of CESC  Being set up in Chandrapur, near Nagpur  2x300 MW configuration  Project cost of Rs. 3500 crs funded at 75:25 debt equity ratio  Coal linkage available from CIL  BTG supplied by Shanghai Electric , China  BoP undertaken by Punj Lloyd  Long Term PPA for 100 MW signed with TANGEDCO  First unit synchronized on 2nd Sept 2013  Project to be commissioned in 2013-14 10

600 MW Haldia TPP, West Bengal  To meet the growing need of its consumers, CESC is setting up a 600 MW (2x300) TPP in Haldia, near Kolkata  Fully regulated project approved by WBERC  Project include 80 kms long 400 kV Transmission line from Haldia to CESC network  Project cost of Rs. 4000 crs+ funded at 75:25 debt equity ratio  Coal linkage available from CIL  BTG supplied by Shanghai Electric , China  BoP undertaken by Punj Lloyd  Project to be commissioned in 2014-15 11

Wind Power Project  Surya Vidyut Ltd, a fully owned subsidiary of CESC has commissioned a total of 24 MW wind power project in Jaisalmer, Rajasthan  The project consist of 12 WTGs of 2 MW each  The first phase of 14 MW was commissioned in Jan 2013 and the PPA was signed with Jaipur Vidyut Vitran Nigam Ltd (JVVNL) for 25 years  The second phase of 10 MW was commissioned in March 2013 and the PPA was signed with Ajmer Vidyut Vitran Nigam Ltd (JVVNL) for 25 years  CESC plans to increase its presence in the wind business, driven by favorable tariff regime and positive long term outlook for renewable energy CESC wind sites in Jaisalmer, Rajasthan 12 12

Distribution Franchisee  Ranchi, Jharkhand – Declared H1 through competitive bidding. Distribution Franchisee Agreement singed. Formal handover in next few months. Annual Revenue Rs.4000 million and 0.3 million consumers  Member of successful bidding consortium in Port Harcourt Distribution Co., Nigeria. Our role is for consultancy services relating to planning for T & D Network, augmentation & loss reduction. Annual fee $2.5 million 13

Coal Sourcing Strategy  Thermal power plants to continue to meet the country`s energy requirements  CESC would implement IPPs which secures a domestic coal linkage  Secure long term off take arrangements of imported coal to meet shortfall if any  Landed cost of imported coal to be competitive  Acquisition of coal mine to enjoy cost advantage  Participation in domestic coal block auction when such opportunity arise Resource Generation Ltd  Coal purchases from Resource Generation’s planned Boikarabelo mine has been extended to 139 MT from 37 MT  Access to 139 MT over 38 years – 73 MT in phase 1, 66 MT in phase 2  Mining expected to start by 2015, Index linked favorable pricing formula  Current holding of RP-SG Group at 5.3% 14

Real Estate  Developed 1st luxury mall in Eastern India on 3 acres land in central Kolkata area  4,15,000 sq.ft retail area, 900+ car parking  Designed by RTKL (UK), construction by L&T  95%+ area already signed  Anchor stores incl Lifestyle, Spencer's, Mother care, Star Mark, INOX  International brands inc Burberry, Emporio Armani, Apple, Estee Lauder, Gucci, Canali, Furla, Tumi, Rolex, Omega … .  Food brands include Smoke House Deli, Bombay Brasserie, Irish House, Yauatcha, Serafina … ..  Mall inaugurated on 30th September 2013 15

“Quest” Shopping Mall inaugurated 16

RETAIL BUSINESS 17

18

19

Spencer’s Retail  Rs.14 bn food-first, hyper & supermarket chain since 1996  30 million NOB’s per annum (est. 50 Mn footfalls per annum)  Strong Brand traction with target customer  14% same store sales growth in each of last 3 years  Private label program across food, fashion, home and general merchandising.  130+ stores spread over 38 cities and about 1mn sq ft  Ranked 2nd in India’s most respected companies in Retail in a study conducted by Business World in 2013  Won the ‘Most Admired Hypermarket Retailer of the Year Award’’ at the India Retail Forum in September 2013  Spencer’s ranks 30th among India’s top 50 ‘Most Trusted Brands’ in the Economic Times Brand Equity survey 2013 20

How Spencer’s “Makes Fine Living affordable ” • A blend of commodity (80%) & indulgence (20%) merchandise with relevant opening price points FINE LIVING AFFORDABLE We’re on top of Bright, clean Superior quality trends so you will stores, category products since find the latest and Market Right prices adjacencies and 1863 including finest at Spencer’s are a great reason fast checkouts private labels - a mix of to shop at make shopping at bearing the commodity & Spencer’s Spencer’s easy and Spencer’s hallmark indulgence fun signature merchandise ASSORTMENT SERVICE QUALITY PRICE • Caters to consumer aspirations • Drive Shopping trips / build traffic • Platform for differentiation • Create market right price impression • Fashion / “Want” items • OPP / KVI benchmarking to drive affordability 21

Spencer’s Footprint Supers • TA Hypers – 646 K sft TA (‘000) Hypers >15 Dailies Regions States SAS TOTAL k <3k 3k -15k • TA Supers – 101 K sft East WB 230 7 2 10 0 19 TOTAL 230 7 2 10 0 19 • TA Small stores – 208 K sft West Maharash 36 1 0 0 0 1 tra Gujarat 24 1 0 1 TOTAL 60 2 0 0 0 2 East UP 114 3 1 14 0 North 18 NCR 132 4 3 5 0 12 TOTAL 246 7 4 19 0 30 South 1 Kerala 17 1 4 0 5 T.N 120 2 2 33 0 37 • A u bon pain – 28 cafes TOTAL 137 2 3 37 0 42 South 2 Bangalore 48 2 2 2 0 6 Coastal 93 4 1 8 0 13 A.P Hyderaba 141 3 3 16 22 d TOTAL 282 9 6 26 0 41 TOTAL 955 K 27 15 92 0 134 22