Presentation Title The Tata Power Company Ltd October 2011 - PowerPoint PPT Presentation

Presentation Title The Tata Power Company Ltd October 2011 Presentation Subtitle 1

Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to The Tata Power Company Limited’s general business plans and strategy, its future outlook and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in The Tata Power Company Limited’s business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any Shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of The Tata Power Company Limited’s Shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the Shares shall be deemed to constitute an offer of or an invitation by or on behalf of The Tata Power Company Limited. The Company, as such, makes no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Tata Power Company Limited may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF THE TATA POWER COMPANY LIMITED. 1

Agenda  Overview of Tata Power  Fuel de risking strategy  Generation Business  Projects  Major projects under execution  Projects in pipeline  Transmission & Distribution Business  Other Businesses  Commitment to Sustainability  Appendix – Financials 2

Company Overview

A Tata Group Company Promoter Mkt Cap ($ bn) 2 Revenue by business segments Listed Companies Shareholding (%) 1 74.1 Market Tata Consultancy Services 43.3 cap has 34.8 Tata Motors 12.3 grown 4% 3% over 3x 30.6 4% Tata Steel 8.8 16% since March 31.8 Tata Power 4.8 2009 53.5 Titan 3.9 Revenue FY 2011 Aspire to grow to 15% of Tata group’s market cap by 2020 31.2 Tata Chemicals 1.7 32% c.INR 3,808bn 35.2 Tata Global Beverages 1.1 36% 76.2 Tata Communications 1.1 33.6 Indian Hotels 1.1 5% 30.6 Voltas 0.7 50.7 Rallis 0.6 Communications and Information systems Engineering 31.3 Trent 0.4 Materials Energy Services Consumer Products Notes: 1 As of 31 March 2011. Source: BSE website 2 As of 26 Octover 2011; Conversion rate of 1US$ = INR 49.51. Source: Tata group website Chemicals 4

Tata Power: Business Overview • Trombay • Hydro • Jojobera • Belgaum • Haldia • Wind Farm s Power • Solar SPV Generation • CGPL (Mundra UMPP) Business 100% • Maithon 74% • IEL 74% • Dagachhu 26% • OTP Geothermal 50% • Mumbai Transmission • Powerlinks 51% • Mumbai Distribution • Delhi: NDPL 51% Investments • Tata Power Trading 100% Trading • Indonesian Coal Mines (KPC and Arutmin) 30% Technical Financial • Exergen • TTML 7% • Mandakini 33% 5.13% Fuel & Logistics • Geodynamics 8.76% • TTSL 8% • Tubed 40% • Sunengy • Panatone • Trust Energy 100% 15% 39.98% • Tata Comm 17% Our Scalable Business Model gives us flexibility to expand - Other • Aggressively looking at opportunities for organic and inorganic growth SED Businesses • Tata BP Solar 49% • Division Other SPVs Investment % stakes Tata Projects 48% 5

Present Across the Power Value Chain Fuel and logistics Transmission Distribution Generation    3,797 MW of Mumbai Mumbai Transmission  30% equity interest in distribution network operational capacity network Indonesian coal mines,    51:49 JV between 4,719 MW of capacity 51:49 JV between KPC and Arutmin Tata Power and Govt. under implementation Tata Power and  Domestic mines under of Delhi for Powergrid Corporation development distribution in Delhi of India Ltd – 33.3% stake in Mandakini (7.5 New business vistas MTPA) utilizing customer – 40% stake in Tubed interface management (6.0 MTPA) • DDG solutions  2 capesize vessels • Open Access owned  3 long term charters signed Integrated Lifecycle Management from Fuel to Retail – Strong presence across the value chain 6

Our Power Business Power generation capacity (MW) Operational Thermal 3014 MW Hydro 447 MW Wind 333 MW Dugar Hydro Solar 3 MW Transmission Powerlinks Distribution NDPL Under Execution DHPC Bhutan Thermal 4525 MW Hydro 126 MW IEL Wind 43 MW Jojobera Gujarat Maithon Solar 35 MW Tubed Mundra Haldia Coal mines 13.5 MT Mithapur Kalinganagar Lodhivali Mumbai Largest, Most Reliable and Efficient Private Sector Operations – Mandakini Maharashtra 2027 MW Energy Major - Mulshi Tata Power celebrates commissioning of Unit#1 Belgaum (525 MW) of the 1050 MW Maithon Mega Power Project Karnataka Powering Expansion – Delivered projects speak more than delivered words Tamilnadu 7

Generation Business

Existing Presence across business models Capacity % of overall Model (MW) capacity Returns Upside Tata Power projects Off-take counterparty BEST (1,000MW), Mumbai Operations TPTCL (400MW), Tata Fixed return Savings on Norms + Regulated returns 2452 65% (Thermal & Hydro), Power Distribution on equity PLF incentive Maithon Unit #1 (527MW), DVC,NDPL,WBSEBL Regulated tariff Savings on capex + CDM BESCOM, GUVNL, Fixed tariff + mechanism 336 9% certificates / RECs as Wind TPC-D, Tata Motors, PLF driven (renewables) applicable TANGEDCO Jojobera Captive power PPA driven Merchant sales + saving on Tata Steel 668 18% Jamshedpur (PH6) plant (14-19%) PPA terms + PLF incentive IEL (Unit 5) Haldia (100MW) Merchant 240 6% Market driven No cap on returns Unit 8 (100MW) Lodhivali (40MW) MoU/Bilateral 20 1% PPA driven As per PPA Haldia (20MW) WBSEDCL Case II (for 81 2% Bid driven PLF incentives Belgaum KPTCL project) Stable cash flows from existing portfolio of regulated business 9

Mumbai Regulated Operations Generation (MU) Thermal 10002 10200 Capacity Fuel 9845 10000 9660 9800 1050 MW Multi fuel 9600 9400 9180 180 MW Gas 9200 8876 9000 8800 150 MW Coal 8600 8400 1480 MW 8200 FY07 FY08 FY09 FY10 FY11 79 86 84 75 69 PLF (%) Generation (MU) 2500 2138 Hydros Location Capacity 2000 1489 1455 1310 Khopoli 72 MW 1500 1151 Bhivpuri 75 MW 1000 Bhira 300 MW 500 Total 447 MW 0 FY07 FY08 FY09 FY10 FY11 60 37 33 38 29 PLF (%) Mumbai Power is Tata Power – Unmatched uninterrupted power supply 10

Merchant Capacity Haldia 250 6 5.41  100 MW* Capacity 5.06 5 200 4.8  Fuel Type Production gases (Hot flue gases 4 3.38 150 3.61 from Hoogly Metcoke) 3  PPA with Tata Power Trading 100 Customer 2.11 2 50 1 0 0 * Remaining 20 MW in Haldia under PPA to WBSEDCL; MUs sold include 20 MW MUs sold Realization Trombay Unit 8 200 6 5.4  5.6 100 MW 5.4 5.3 5.1 Capacity 180 5 4.2 160  Imported Coal Fuel Type 140 4 120  PPA with Tata Power Trading Customer 100 3 80 2 60 40 1 20 0 0 MUs sold Realization Upside from presence in merchant market 11

Jojobera & Belgaum Generation (MU) 3200 Jojobera 3078 3100 3009 3002  428 MW 3000 Capacity 2862 2900  Fuel Type Domestic Coal 2731 2800 2700  Tata Steel Customer 2600  20 year PPA till 2017 2500 FY07 FY08 FY09 FY10 FY11 82 PLF (%) 80 80 76 73 Generation (MU) Belgaum  81 MW 447 500 Capacity 394 400  Fuel Type Heavy Fuel Oil 300 300 237  KPTCL – 12 year PPA till 2012 189 Customer 200 100 0 FY07 FY08 FY09 FY10 FY11 PLF (%) 27 33 63 55 42 12

Industrial Energy Limited (JV with Tata Steel) IEL – PH6  120 MW, Aug 2009 (PH-6) Capacity /COD  Fuel Type Production gas (Furnace / Coke Oven Gases of Tata Steel)  Tata Steel Customer  Generation FY10 - 563 MU, FY11 - 738 MU IEL – Unit#5  120 MW, Mar 2011 (Unit #5) Capacity /COD  Fuel Type Domestic Coal  Tata Steel Customer  Generation 10 MU as of 31 Mar 2011. COD declared on 27 March 2011 High returns from captive business 13