#1पावरग्रिड POWERGRID Transmitting Power for Progress and Prosperity Investor Presentation November 2022 www.powergrid.in#2Disclaimer पावरग्रिड POWERGRID By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Power Grid Corporation of India Limited (the "Company"), nor shall part, or all, of this document form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities of the Company. The information in this document is being provided by the Company and is subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This document contains statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the document. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. Annual Accounts for FY2021-22 are approved by the shareholders. 2#3POWERGRID Overview Performance Highlights Awards Growth Outlook पावरग्रिड POWERGRID 3#4POWERGRID Overview पावरग्रिड POWERGRID A "Maharatna❞ CPSE India's 3rd Largest in terms of Gross Block¹ Subsidiary: 28 nos, Joint Venture: 112 nos, Associates: 04 nos Pan-India Transmission network with cross-border interconnections Foot Prints in 23 countries Transmission Lines • 1,72,982 ckm 1,364 nos. Sub-stations ~ 4,86,590 MVA 267 nos. Domestic International CRISIL Moody's 'AAA' ICRA Stable CARE S&P Fitch 'Baa3' 'BBB-' At par with Sovereign 1-As per DPE(Gol) PE Survey 2020-21 2-excl. under closure IR Capacity 97,290 MW > 85% of India's Capacity 4#5Performance Highlights Project Execution Operational Performance Financial Performance Other Businesses Commercial Performance पावरग्रिड POWERGRID 5#6Project Execution 758 Capex(accrual) 1,911 1,737 1,482 1,153 Q1FY23 Q2FY23 Standalone ■Consolidated 3,219 H1FY23 1,332 1,345 Q1FY23 Capitalization 365 पावरग्रिड POWERGRID 1,788 1,697 Q2FY23 Standalone ■Consolidated Fully Commissioned POWERGRID Mednipur Jeerat Transmission Limited. POWERGRID Bhind Guna Transmission Limited. (in crore) Capitalization figures. exclusive of FERV 3,133 H1FY23 6#7Operational Performance-H1FY23 99.82% 99.82% * 99.75% • Availability H1FY22 H1FY23 * Full incentive capped at 99.75% Availability and Trippings per line are on standalone basis. 0.22 0.20 Tripping per line H1FY22 H1FY23 पावरग्रिड POWERGRID ས 7#8Financial Performance-Q2FY23 Standalone Income Growth: 7% PAT Growth: 9% 10,472 11,190 3,338 3,651 Consolidated Income Growth: 8% PAT Growth: 8% 11,349 10,515 पावरग्रिड POWERGRID 3,650 3,376 Income PAT Income PAT Q2FY22 Q2FY23 Q2FY22 Q2FY23 (in crore) 8#9Financial Performance-H1FY23 20,757 Standalone Income Growth: 7% PAT Growth*: 12% 22,207 7,417 6,612 Income PAT* H1FY22 H1FY23 (in crore) Consolidated Income Growth : 8% PAT Growth*: 11% 22,518 20,906 पावरग्रिड POWERGRID 7,451 6,718 Income PAT* * excluding Exceptional Item H1FY22 H1FY23 6#10Financial Performance पावरग्रिड POWERGRID Description Q2FY23 Q2FY22 Growth H1FY23 H1FY22 Growth STANDA Income - Transmission Charges 10,335 9,584 8% 20,382 19,113 7% Consultancy - Services Telecom 133 179 (26)% 366 331 11% 187 168 11% 353 265 33% - Other Income 535 541 (1)% 1,106 1,048 6% Total Income 11,190 10,472 7% 22,207 20,757 7% Operating Expenses (including movement in regulatory 1,474 1,229 20% 2,795 2,396 17% deferral balance other than DA for DTL) L Share of Net Profits of investments accounted for using Equity Method ONE EBITDA-Gross Margin 9,716 9,243 5% 19,412 18,361 6% Depreciation 3,219 3,143 2% 6,422 6,170 4% Interest 2,149 2,036 6% 4,137 4,134 0% Exceptional/Extraordinary Item (3,169) Tax (Net of DA for DTL) 697 726 1,436 1,802 3,651 3,338 9% 7,417 9,424 (21)% (* in crore) Profit After Tax 10 10#11Financial Performance पावरग्रिड POWERGRID Description Q2FY23 Q2FY22 Growth H1FY23 H1FY22 Growth CONSO Income - Transmission Charges 10,846 9,937 9% 21,375 19,930 7% - Consultancy - Services 117 163 (28)% 328 292 12% Telecom 187 168 11% 353 265 33% Other Income 199 247 (19)% 462 420 10% Total Income 11,349 10,515 8% 22,518 20,907 8% L Operating Expenses (including movement in regulatory 1,501 1,242 21% 2,834 2,423 17% IDATED deferral balance other than DA for DTL) Share of Net Profits of investments (24) 29 (29) 46 accounted for using Equity Method EBITDA-Gross Margin 9,824 9,302 6% 19,655 18,530 6% Depreciation 3,318 3,195 4% 6,613 6,307 5% Interest 2,130 1,961 9% 4,096 3,977 3% Exceptional/Extraordinary Item - - (3,014) Tax (Net of DA for DTL) 725 770 1,495 1,885 Profit After Tax 3,651 3,376 8% 7,451 9,375 (21)% (* in crore) 11#12Financial Performance Description as on 30.09.22 Gross Fixed Assets ( crore) 2,53,047 Standalone as on 30.09.21 2,43,647 पावरग्रिड POWERGRID Consolidated as on 30.09.22 as on 30.09.21 2,67,256 2,54,997 Capital Work-in-Progress ( crore) 7770 11,195 13,058 15,710 Debt (crore) 1,28,476 1,35,012 1,28,476 1,35,012 Net Worth (crore) 82,078 77,222 82,208 77,575 Earning Per Share (*)* 10.63 13.51 10.62 13.44 Book Value per Share (*) 117.67 110.71 117.85 111.21 Key Financial Ratios Debt: Equity 61:39 64:36 61:39 64:36 Return on Net Worth* 9.04% 12.20% 9.06% 12.08% * Not annualised 12#13Other Key Financial Information पावरग्रिड POWERGRID Description Q2FY23 Q2FY22 Surcharge Income (Consol.) 15 89 Incentive (Consol.) 129 136 Int. from Subsidiaries & JVs* 270 204 Int. on differential tariff 150 (1) Dividend from JVs* 27 24 Dividend from Subsidiaries* 59 63 Dividend from Associates/Others* 32 55 CSR Expenses* 24 23 Average Cost of Borrowing* 6.30% in H1FY23 Debt raised in H1FY23* *1,902 crore FERV (Gross Block) 629 (57) Equity in TBCB- Operational* 3,166 2,526 * On Standalone basis Equity in TBCB- U/ Constn.* 516 473 Short Term Loan 2100 0 (in crore) * On Standalone basis 33 13#14Telecom Performance-Q2FY23 チ Income* 187 crore Hv 41 new customers added 100% Backbone Availability Data Centre Business Opportunities पावरग्रिड POWERGRID ILD Business Orders (Including Multiple Years Orders) worth 265 cr. received from Global OTTs, Govt. Departments, Public Sectors, Private Entities, ISPs etc. OPGW leasing agreement signed with JKPDD and PTCUL, to explore business in new cities. Broadcasting of FM radio on POWERGRID's Transmission tower successfully tested. on consolidated basis 14#15Consultancy Performance-Q2FY23 チ Hv Income*: 117 crore पावरग्रिड POWERGRID Consultancy services to Domestic and International clients. Domestic 10 new orders in Q2FY23. 64 ongoing assignments International 01 new assignment in Q2FY23. • 15 ongoing assignments. Incorporation of "Butwal-Gorakpur Cross Border Transmission Limited" A 50:50 Joint venture with Nepal Electricity Authority. - Development of Indian portion of 400 kV Gorakhpur (India) – Butwal (Nepal) Transmission Line. Consulting Services for Project Supervision Consultant (Phase II) to Nepal Electricity Authority under SASEC Power System Expansion Project. Development of transmission system in Tanzania on PPP_JV Model with Africa50. Signed Cooperation Agreement with Africa50 to implement transmission system in Tanzania. * on consolidated basis 15#16Commercial Performance Outstanding dues (at end of Qtr) (in crore) पावरग्रिड POWERGRID Billing * 20,566 cr 6,777 5,856 4,953 1,909 4,312 1,718 2,248 44.56* 1,626 43.32* Realization * 18,101 cr 26.30* 27.22* 4,138 4,868 2,705 2,686 Q2FY22 Q4FY22 Q1FY23 Q2FY23 ■O/s > 45 days ■O/s < 45 days %age realization * Receivable (days' billing) Major Dues: J&K, Tamil Nadu, Uttar Pradesh and Maharashtra. 2 208 cr received against outstanding dues of 2,400 cr with 7 Discoms settled in accordance with LPS Rules 2022 notification by MoP on June 03, 2022. 2 88.01%#17Other related business Smart Metering पावरग्रिड POWERGRID 2 • Potential Opportunity: 25 cr meters, ~ 1.5 L cr (incl. GBS : * 22,500 cr). Initiated procurement process for End-to-End Smart Metering Solution for 1 cr Smart meters. • Techno commercial bids submitted by parties. • Discussion with the States underway for MoU route. • Signed MOU with MGVCL & UGVCL, Gujarat state discoms to implement Advanced Metering Infrastructure (AMI) System for 66 lakh meters. Solar Power Generation • . • Committed to source 50% of its electricity consumption from non-fossil fuel sources by 2025. POWERGRID's first commercial Solar PV Project of 85 MW at Nagda. . Feasibility study completed. Bids to be opened shortly. Preliminary feasibility carried out for additional capacity at Aurangabad, Jabalpur, Khammam, Wardha.#18Other Highlights Acquired Neemuch Transmission Limited • • o Transmission System for Evacuation of Power from Neemuch SEZ. 02 nos 400kV D/C Transmission lines passing through the states of Rajasthan and Madhya Pradesh. . 400/220kV Pooling Substation at Neemuch (Madhya Pradesh). . 400kV bay extension works. पावरग्रिड POWERGRID Acquired* ER NER Transmission Limited • System Strengthening Scheme for Eastern and North Eastern Regions. Upgradation works at 400/132kV Banka (Bihar). 220kV D/C Transmission lines passing through the states of Assam & Arunachal Pradesh. • Bay extension works. I on 11th October 2022 Cyber Security Initiatives Collaboration with IISc Bangalore for setting up "POWERGRID Center of Excellence (CoE) in Cyber Security". Digital Initiatives MOU signed with OPTCL and MPPTCL for establishment of State Transmission Asset Management System.#19Other Highlights CSR Initiatives POWERGOVSHRAM SADAN पावरग्रिड POWERGRID • POWERGRID "Vishram Sadan" at Darbhanga Medical College & Hospital (DMCH) dedicated by Shri R.K.Singh, Hon'ble Minister of Power and New & Renewable Energy to the nation. • Vishram Sadan, equipped with 260 beds, will provide comfortable stay to family members of patients visiting DMCH. 19#20Awards पावरग्रिड POWERGRID National CSR Award 2020 Honourable mention for "CSR in Aspirational Districts/ Difficult Terrains in North East India". Partner with National Foundation for Communal Harmony (NFCH). CSR initiative for funding education of 1,359 violence affected children of Manipur, Assam for their education who belong to poor families with family income less than 2L per annum. The Economic Times Recognized for Employee Excellence 2022. Dun & Bradstreet Awarded in the Power Transmission (Central PSUs) category. 20#21Growth Outlook - Sectoral 404 203 9.55% CAGR 594 Installed Capacity(GW) 6.66% CAGR 838 114 18.70% CAGR 450 254 Renewable Energy Source(GW) 5.06% CAGR 340 316 1,566 Peak Demand(GW) Source: CTUIL Rolling Plan 2027-28(Interim Report), CEA FY22 FY28 FY30 2,100 Energy Requirement(BU) पावरग्रिड POWERGRID 2,325 21#22Growth Outlook - Sectoral ISTS expansion plan till 2027 10,869 7,094 6,039 6,209 ckm addition 98,030 64,050 42,320 2,808 30,965 MVA addition 7,575 18,562 18,740 पावरग्रिड POWERGRID 38,228 35,215 30,218 Estimated Investment(in cr) 2022-23 2023-24 2024-25 2025-26 2026-27 As per CTUIL Rolling Plan 2027-28(Interim Report) Investment upto ₹ 1.40L crore is expected by FY 2026-27 22#23Work in Hand Ongoing Projects * 8,200 crore Work in Hand: ~45,700 crore पावरग्रिड POWERGRID New Projects 23,500 crore TBCB Projects 14,000 crore FY23 Capex Plan: 8,800 crore 23#24in f www.powergrid.in Thank You पावरग्रिड POWERGRID 24 24