#1Energizing India's Growth एनटीपीसी NTPC A Maharatna Company INVESTOR PRESENTATION#2NTPC: Vision, Mission and Core Values एनटीपीसी NTPC A Maharatna Company Vision To be the World's Leading Power Company, Energizing India's Growth Mission Provide Reliable Power and Related Solutions in an Economical, Efficient and Environment friendly manner, driven by Innovation and Agility Core Values-ICOMIT Customer Focus Ⓒ Transforming India एनटीपीसी NTPC A Maharatna Company Total Quality & Safety Innovation & Learning Integrity COMIT Mutual Respect & Trust Organization al Pride Copyright © 2016 Your Company All Rights Reserved.#3Presentation Outline Company Overview Financial Highlights Operations Highlights एनटीपीसी NTPC A Maharatna Company Power Sector - in transition NTPC - Staying Ahead of the Curve Risks & Mitigation Sustainability Initiatives Copyright © 2016 Your Company All Rights Reserved.#4Tran/forming India NTPC Energizing India's Growth Strong Support from the Government of India Largest Power Generator in India ■ One of the 7 Maharatnas of Government of India ■ Gol Control with 69.74% holding ☐ Plays a pivotal role to achieve power for all Maintaining Leadership Position for over 2 decades A 50 GW+ Powerful Maharatna ■ 16% share in India's total installed capacity NTPC Group contributed 24% to All India generation during FY 17. ■ Installed capacity of 51,671 MW + 20,976 MW under construction ☐ Highest capacity addition of 13395 MW in a plan period in the 12th plan. एनटीपीसी NTPC A Maharatna Company Proven Operational Excellence Presence across the Power Value Chain Strong Focus on Renewable Energy Sources Backward integration thru Coal Mining 12th Largest Power Utility Globally ☐ ☐ ☐ ☐ Highest ever gross generation of 250.31 BUS Maintaining consistent lead over All India PLF Top 3 coal stations belong to NTPC. Subsidiary NVVN traded 15.9 BUS in FY17 Providing Consultancy in various areas ■ International presence- Setting up power plant in Bangladesh ■ 865 MW Solar PV capacity and 18 MW of Wind Power capacity commissioned ■ Committed to set up 10,000 MW of Renewables over next 4-5 years. ■ 10 coal mining blocks, with total Geological Reserves of around 7.3 BT ■ Commenced Mining at Pakri Barwadih Ranked No.2 IPP in the world by PLATTS#5Key Performance Highlights of FY 17 एनटीपीसी NTPC A Maharatna Company Group recorded gross generation of 276.77 BUS- Aspire to cross 1,000,000,000 units/day NTPC's stations Coal achieved PLF of 78.59% against All India PLF of 59.88% With Addition Capacity of 3845 MW NTPC is today 51671 MW strong TPAs extended- 26 States/UTS signed TPAS ensuring PSM 2.27 Lakh Tonnes of Coal Extracted from PB Block Record Realisation of Sales Rs.77195 crore Copyright © 2016 Your Company All Rights Reserved.#6NTPC Group: Pan India Presence Share of Installed Capacity (*as on March 31,2017) 16% 84% Rammam (120MW) (610MW) Bongaigaon (750MW) *Rest of India 276350 MW *NTPC (Group) 50498 MW Koldam 800MW Dadri (817MW Dadri Solar PV (5MW) Faridabad (430MW +5MW Solar Lata Tapovan (171MW). Tapovan Vishnugad (520MW) NCTPP (1,820MW) Unchahar (1,550MW) & (10 MW Solar) Badarpur (705MW). Jhajjar (1,500MW) Auraiya (652MW) Bhadla (260 MW)O Anta (413MW) Mandsaur (250 MW)O Tanda (1760 MW) Kanti Nabinagar(1,000MW +1980 MW) Kahalgaon (2,340MW) Meja (1,320MW) Singrauli (2,023MW) 50 MW Barh 3,300MW Rihand 3,000MW Farakka 2,100MW Durgapur Daralipali (120+40MW) (1600MWalcher Kaniha Khargone Vindhyachal (4,760MW) Rourkela NKP 1980MW Gandhar 1320 MW Raigarh Solar PV Lara 1,600MW(120+250MW) Korba 2,600M Gadarwara (1600 MW) Bhilai Mouda (2,320 MW) 574MW (648MW) Rojmal (50 MW) एनटीपीसी NTPC A Maharatna Company Share of Electricity Generated (during FY17) 24% 76% Rest of India 883.07 BUS NTPC (Group) 276.77 BUS Installed Capacity: 51671 MW Kawas Sipat 2,980MW (645MW) Solapur Ramagundam (1,320MW) (2,600MW)+(10MW solar) Ratnagiri (1,967MW) Telangana (3,000MW)+10MW Solar Fuel Mix No. of Plants Capacity (MW) % Share Talcher Thermal (460MW) NTPC Owned Coal 20 38,755 75.00% Kudgi (1600MW) (2,400MW) Simhadri 2,000MW) Anantpur Solar (29JMW) Gas/Liquid Fuel 7 4,017 7.77% Hydro 1 800 1.55% Solar/Wind 12 883 1.71% A&N Solar PV (5MW) Vallur (1,500MW) Sub-total 40 44,455 86.03% Kayamkulam (350MW) Owned by JVs and Subsidiaries Coal 8 5,249 10.16% Gas 1 1,967 3.81% Map not to scale. Includes capacity of under construction plants Thermal Power Stations Ongoing Hydro Power Projects Gas Power Stations Sub-total 9 7,216 13.97% Ongoing Thermal Projects Solar PV Hydro Power Stations Wind Power Project Total 49 51,671 100.00% Copyright © 2016 Your Company All Rights Reserved.#7Group NTPC - 5 Subsidiaries and 20 Joint Ventures Kanti Bijlee Utpadan Nigam Ltd. (65%) Power Generation Bhartiya Rail Bijlee Company Ltd. (74%) Patratu Vidyut Utpadan Nigam Ltd. (74%) Aravali Power Company Pvt. Ltd. (50%) NTPC Tamil Nadu Energy Company Ltd. (50%) NTPC SAIL Power Company Ltd. Bangladesh India Friendship Power Company Pvt Ltd. (50%) Trincomalee Power Company Ltd. (50%) Nabinagar Power Generating Company Pvt. Ltd. (50%) Meja Urja Nigam Pvt. Ltd. (50%) Services NTPC Electric Supply Company Ltd. (100%) Utility Powertech Ltd. (50%) NTPC GE Power Services Pvt. Ltd. (50%) National High Power Test Laboratory Pvt. Ltd. (20%) Anushakti Vidyut Nigam Ltd. (49%) Energy Efficiency Service Ltd.(31.70%) Power Trading NTPC Vidyut Vyapar Nigam Ltd. (100%) Fertilizer Plants Hindustan Urvarak & Rasayan Ltd. (33.28%) एनटीपीसी NTPC A Maharatna Company Coal Acquisition International Coal Ventures Pvt. Ltd. * NTPC SCCL Global Ventures Pvt. Ltd. ** CIL NTPC Urja Pvt. Ltd. (50%) Equipment Manufacturing NTPC BHEL Power Projects Pvt. Ltd. (50%)* BF NTPC Energy Systems Ltd. (49%)* Transformers and Electricals Kerala Ltd. (44.60%)* Strong Consolidated Financials (50%) Ratnagiri Gas and Power Pvt. Ltd. (25.51%) Highlights of Group Companies ■ Investment in Group Companies as on 31.03.2017 is Rs.8,839 Balance Sheet 31.03.17 31.03.16 P&L FY 17 FY 16 crore. ■ Investment in Operational Group Companies is Rs.6,110 crore. ▪ 13 Group Companies are operational. ■ 9 of them registered an aggregate profit of Rs. 1,540.38 crore. Group Companies together paid a dividend of Rs.310.08 crore crore during FY17, NTPC received Rs.163.09 crore as its share. Total Debt 1,10,650 97,936 Revenue 83,048 74,484 Cash & Bank 3,301 4,938 EBITDA 22,463 19,006 Net Debt 1,07,349 92,998 PAT 10,714 10,781 Net Worth 98,641 92,369 Subsidiaries Joint Ventures JVs under Exit Consolidated EBITDA jumped by 18%. *Company has resolved to withdraw from NTPC-BHEL, ICVL, BF-NTPC and TELK. **NTPC-SCCL is under liquidation. Copyright © 2016 Your Company All Rights Reserved.#8Financial Highlights SURLANGE#9Sustaining Robust Margins along-with Revenue Growth एनटीपीसी NTPC A Maharatna Company Rs. Crore Particulars Q1 FY 18 Q1 FY 17 FY 17 FY 16 FY15 FY14 FY13 Revenue from Operations 19,879 19,063 78,273 70,844 73,237 72,019 65,674 Other Income 663 158 1,069 1,165 2,100 2,689 3,102 Gross Profit 7,802 7,431 30,701 27,045 24,403 26,189 24,656 Gross Margin 39% 39% 39% 38% 33% 36% 38% Employee Benefit Expenses 1,071 998 4,325 3,582 3,621 3,868 3,360 Other Expenses 1,690 1,261 5,092 5,576 4,577 4,557 4,182 EBITDA 5,703 5,329 22,353 19,052 18,306 20,453 20,216 EBITDA Margin 28% 28% 28% 26% 24% 27% 29% Depreciation 1,570 1,395 5,921 5,172 4,912 4,142 3,397 Finance Cost 896 900 3,597 3,296 2,744 2,407 1,924 Exceptional Items (783) 1,684 Profit Before Tax 3,465 3,037 12,388 10,596 10,547 13,905 16,579 Profit After Tax 2,618 2,339 9,385 10,770 10,291 10,975 12,619 Dividend 3,595 2,762 2,061 4,741 4,741 *Figures for FY 2015-16 & 2016-17 are as per IND AS and for FY 2012-13 to 2014-15 are as per previous GAAP. Copyright 2016 Your Company All Rights Reserved.#10Consistently Growing Balance-Sheet एनटीपीसी NTPC A Maharatna Company Rs. Crore Particulars (Stand alone) FY 17 FY 16 FY15 FY14 FY13 Total Fixed Assets (Net block+CWIP) 180,093 158,196 134,909 117,000 100,046 Investments 8,952 8,014 7,239 8,121 9,138 Net Worth 96,231 91,294 83,830 85,815 80,388 Total Debt 103,840 91,828 86,031 67,170 58,146 Value Added 29,159 27,440 25,090 25,966 22,999 CAPEX 28,252 25,960 23,239 21,797 19,926 Growth reflected in highest ever CAPEX of Rs. 28,252 crore on stand alone basis. Total Debt and Capitalization Total Debt Total Capitalisation 180,093 158,196 134,909 117,000 100,046 103,840 91,828 86,031 67,170 58,146 FY 13 FY 14 FY 15 FY 16 FY 17 Total Assets 236,577 215,138 197,170 179,554 161,116 140,838 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 On growth path.........Capitalization registered CAGR of 16% over last 4 years 10#11◉ Debt/Equity Prospering by Optimal Leveraging Average Rate of Borrowing Interest Service Coverage 8.07% 1.03 1.08 1.01 7.67% 0.72 0.78 7.45% 7.05% FY 13 FY 14 FY 15 FY 16 FY 17 FY 15 FY 16 FY 17 Q1 FY 18 एनटीपीसी NTPC A Maharatna Company 10.4 8.6 6.7 5.9 6.5 Strong credit metrics ensure debt at Optimal Costs...."AAA" by CRISIL, ICRA and CARE FY 13 FY 14 FY 15 FY 16 FY 17 First Indian corporate to raise Masala bonds of Rs.4,000 crore from International market-Rs 2000 crore as Green Masala bonds Placed Rs. 8,867.50 crore of bonds in domestic market 242 BUS +3.45% 250 BUS Rs. 72,009 Crore Generation Growth +10.18% Rs. 79,342 Crore Rs. 19,052 Crore +17.32% Rs. 22,353 Crore Revenue Growth 26% EBITDA Growth EBITDA MARGINS 28% Registered 10% growth in revenues viz-a-viz Generation growth of 3.45%. EBITDA has registered a growth of 17.32% which is highest in last 4 years. Copyright © 2016 Your Company All Rights Reserved. 11#12High Returns to Investors Consistent & High Dividend Payouts - Paying dividend for last 24 years 70% 57.50% 57.50% 60% 50% 40% 50.53% 43.77% 25.00% 30% 20% 10% 0% 5,523 5,546 2012-13 2013-14 6000 5000 43.60% 4000 33.50% 42.20% 3000 32.46% 2000 24.09% 1000 2,479 3,325 4,323 0 2014-15 2015-16 2016-17 एनटीपीसी NTPC A Maharatna Company Dividend incl Tax Dividend % (of paid up capital) Diversified Shareholding Pattern (as on 30.06.17) Dividend including DDT as a % of PAT FY17 Returns NTPC Scrip (29%) Vs. NIFTY 50 (18%) 1.75% 16.24% 1.84% 135 130 125 10.43% Returns 123124 120 117 115 69.74% 114115 110 111 108 .107 105 105 111111 106106 133 128 129 126 118 115 NIFTY 50 111 NTPC 100 100 101 Gol Fils Dlls Retail Others Mar'16 Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Copyright © 2016 Your Company All Rights Reserved. 12#13Operations Highlights SURLANGE#14Highly Efficient Plant Operations Proven Operational Excellence over last 2 decades Consistently maintaining spread of 15%-16% in terms of PLF over the last 2 decades on All-India level - further widened to 19% in FY 2016-17. 6 NTPC coal stations amongst the top 10 stations of the country in terms of PLF. एनटीपीसी NTPC A Maharatna Company Standalone + Group Generation during last decade (in BUS) Contribution from Group Companies in total generation has increased over six times during last decade. 250.63 192.86 188.67 276.77 260.58 263.42 250.31 233.28 241.26 241.98 ☐ All stations recovered full Annual Fixed Charges under CERC regulations except Barh. Turned around 4 sick plants across India through in-depth engineering driven by strong systems Operating and managing 187 units with varied fuel sources and technologies. 88.7%* 92.1%* 91.9% 91.6% 84.1%* 75.2% 83.6% 72.2% 92.2% 78.6% 88.7% 80.2% 78.6% 78.6% ◉ 64.7% 64.5% 62.3% $9.9% 2015-16 2016-17 1997-98 2002-03 2007-08 2014-15 *AVF on bar NTPC AVF (DC) NTPC PLF All-India PLF Best safety practices- Integral to NTPC's DNA. FY 07 FY 14 NTPC (Group) FY 15 NTPC (Standalone) FY 16 FY 17 Maintenance practices and real-time monitoring system ensure high availability and efficient operations 100% analysis of boiler tube failures. Daily and Monthly review system (ORT-Operation Review team) system ensures high level of performance. Periodic structured Technical Audits carried out for all units for identifying and correction of gaps. Fleet-wide monitoring by experts with online data system at Antariksh centre allows real time interventions. All stations are OHSAS-18001/IS-18001 certified 14#15Sustained Growth in Generation....handholding SUS 5.07% Growth in Group Generation in FY 17 280 263.42 276.77 250.31 241.98 230 180 130 80 30 FY 16 FY 17 71.50 64.55 NTPC(Standalone) NTPC (Group) 71.61 64.41 Q1 FY 17 Q1 FY 18 Partnering State Utilities under UDAY ■ Entrusted by Govt. of India to handhold State GENCOs for improvement of Operational efficiency under UDAY. ■ An institutional setup created to enhance operational efficiency of State GENCOS under UDAY Workshops conducted for State GENCOs in which best practices followed in NTPC power stations were shared Sustained Growth in Generation एनटीपीसी NTPC A Maharatna Company Group NTPC has achieved a generation of 276.77 BUS in FY17 registering a growth of 5.07% on previous year. Group companies registered a generation growth of ~23% during FY 17 over last year. NTPC and Group NTPC achieved highest ever daily generation of 799.84 million units (MUs) and 888.35 MUs respectively on March 23, 2017. Capacity (NTPC Group) 20249 16795 11333 3100 200 50498 44398 41184 34194 FY82 FY87 FY92 FY97 FY02 FY11 FY13 FY15 FY17 Committed to share expertise with State GENCOs to improve efficiency in power sector 15#16Sustaining Status of Competitive Cost Power Producer Rs./kWh 3.30 3.28 3.18 3.30 2.96 2.96 2.15 2.05 2.10 2.01 1.95 1.96 1.20 1.13 1.22 1.29 0.91 1.01 ☐ एनटीपीसी NTPC A Maharatna Company Tariffs based on Regulations notified by CERC. Regulatory mechanism assures Returns balancing Risk-reward Ratio. CERC vide 4th Amendment to IEGC has allowed Compensation against degradation of the operational parameters due to partial loading. ☐ NTPC has taken up impact of new environment norms and notifications related with Ash Transportation with CERC. NTPC revenues are immune to volatile merchant power prices. 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Average Tariff Fuel Charges Fixed Charges Overall Tariff (Coal+gas+ Solar) SEB's LC's एनटीपीसी NTPC Tripartite Agreement Recourse to RBI ● भारतीय $4 रिजर्व बैंक BANK O CON NINE Average Coal Based Power Cost (Rs/kWh) 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Fixed Charges 0.89 0.98 1.14 1.09 1.18 1.19 Variable Charges 1.89 1.73 1.99 2.02 1.89 1.99 Payment Security Mechanism 26 states have signed the TPA extension agreements in pursuance of Gol and RBI approval for extension of TPAS. LC coverage from SEBS adequate to cover monthly billing Tripartite Agreements between Government, RBI and each state in terms of the Scheme for One Time Settlement of SEB dues. Avg. Coal tariff 2.78 2.71 3.13 3.11 3.07 3.18 - Recourse to Reserve Bank of India (RBI) in case of default in making payment. Coal based plants close to pit head stations ensure competitive variable cost of generation 16#17Apr/15 Continuous Reduction of ECR of coal stations ECR brought down effectively by 39 paise during FY 17 2.03 2.02 2.01 2.00 1.97 1.95 Coal rationalisation and reduction in Import coal, e- auction / MOU coal May/15 Jun/15 Jul/15 Aug/15 Sep/15 2.03 2.04 1.98 1.92 Third party sampling and grade re-conciliation started 2.07 2.04 1.96 1.94 1.90 1.93 1.93 1.85 1.83 1.77 1.76 1.75 1.76 1.83 1.84 1.82 1.8 1.81 1.70 1.78 Notional ECR if there was no increase in prices / cess 1.7 1.68 1.67 1.64 Oct/15 Nov/15 Dec/15 Jan/16 Feb/16 Mar/16 Apr/16 May/16 1.69 Jun/16 Jul/16 Aug/16 Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17 एनटीपीसी NTPC A Maharatna Company Reasons for offset of reduction: 1. Impact of Clean Energy Cess w.e.f. Mar'16 2. Impact of Coal price notification w.e.f. May'16 3. Railway freight w.e.f. Aug'16 Further reduction of around 19 paise per unit possible in FY 18 with implementation of: Rationalization of Coal Linkages ☐ Flexible utilization of coal ☐ Re-grading of Coal Mines Goods & Services Tax (GST) Copyright © 2016 Your Company All Rights Reserved. 17#18Long-term Fuel Security & Fuel Supply Coal Transportation (Standalone Commissioned Capacity) Railways, 12915, 33% MGR, 25840, 67% एनटीपीसी NTPC A Maharatna Company Long term Fuel Supply Agreements have been signed with CIL and SCCL for supply of coal for a period of 20 years for total ACQ of 164.47 MTPA NTPC through sustained policy advocacy has secured a single ACQ (Annual Contracted Quantity) for all its coal stations resulting in: Optimum utilization of coal leading to reduction in ECR Avoidance of loss of fixed charges due to coal shortage More efficient operation of power plants Higher marginal contribution from operations 67% of coal capacity is linked by MGR /belt conveyor system to coal mines representing 10 out of 20 coal plants. Coal Supply (For NTPC Own Plants) ACQ Non-ACQ Imported (In MMT) FY 15 FY 16 FY 17 FY 18E ACQ 142.7 145.2 152.2 164.5 16.6 8.4 9.7 7.2 Non-ACQ 8.4 7.2 1.2 4.7 164.5 152.2 142.7 145.2 Import 16.6 9.7 1.0 0.5 FY15 FY16 FY17 FY18E Total 167.7 162.1 160.4 169.7 NTPC leads drive to cease import of thermal coal with 89% decrease in imported coal supply in FY 17 Vs. FY 16. No further orders for import of coal were placed. 94.04% ACQ materialization during FY 17 as compared to 91.19% in FY 16. Third party sampling at loading end by CIMFR started for all stations 18#19People before "PLF" एनटीपीसी NTPC A Maharatna Company OUR HR VISION "To enable our people to be a family of committed world class professionals, making NTPC a learning organization" Consistent Improvement in Productivity of Manpower FY 12 Per Employee 43% Rs.2.70 crore Revenue FY 17 Rs.3.85 crore 72% Rs.0.82 crore Value Added Rs.1.42 crore 55% Rs.0.70 crore 31% 9.25 MUS 55% 0.73 EBITDA Generation Man MW Ratio Rs.1.09 crore 12.16 MUS 0.47 India's Best Companies To Work For 2017 THE ECONOMIC TIMES Co Consistent performer under the Public Sector Category and Energy, Gas and Oil Sector at the India's Best Companies to Work Survey by Great Places to Work Institute & Economic Times Strong Top Management with proven track record backed by competent manpower 12:2005, 12: 19#20Transforming Power Sector SURLANGE#21MISS ti 24x7 AFFORDABLE CLEAN POWER FOR ALL Transforming Power Sector Today ~330 GW Installed Capacity Generation (in BUs) ~1160 BUS Peak Load Demand ~153 GW Per capita consumption ~1075 kWh Renewable capacity ~57 GW Coal Requirement Transmission Capacity (Inter Reg) ~60 GW AT & C Losses ~22.70% एनटीपीसी NTPC A Maharatna Company Target ~ 515 GW by FY22 ~1611 BUS by FY22 ~235 GW by FY22 ~3026 kWh (World average) 175 GW by FY22 ~600 MT 727 MT by FY22 ~126 GW by FY22 15% by FY19 Government's focus on attaining affordable "24x7 Power for All" by 2019. Source: MOC, MOP, CEA, NTPC Copyright © 2016 Your Company All Rights Reserved. 21#22Strong Growth Drivers for Power Sector in India India's GDP is expected to grow at ~8% over next 5 years. Demand Growing population coupled with increasing urbanization to boost growth of consumption. Per Capita Consumption still one of the lowest Benefits of UDAY to yield results by improving financial capability of Discoms leading to increase in offtake. Facilitation of open access by States India has Low Per Capita Consumption (kWh/Year) Electricity Demand in India is expected to grow at CAGR of ~7%. Supply Increased coal production by coal companies in India to improve feedstock supply. एनटीपीसी NTPC A Maharatna Company Financial reforms undertaken by Gol such as 5/25 refinancing scheme to boost project viability. Falling prices of Solar energy. Investment in new inter-state transmission systems Energy requirement to rise at a healthy pace 12,987 (Bn units) 2000 CAGR 6.5%-6.7% 10,067 1565 1500 1142 5,409 1000 3,026 3,766 2,583 500 1,075 0 US Australia UK World China Brazil India FY17 FY18P FY19P FY20P FY21P FY22P Power Sector under Transformation 22#23Moving towards Green Future एनटीपीसी NTPC A Maharatna Company FY17 Capacity (GW): 57 Lagging Grid Growth Grid growth as a driver for solar lighting demand varies by region. Grid Penetration needs to grow to counteract the effect of population growth. Key Drivers Rapid Price Trends Technological innovations & scale-up of commercialization efforts decrease the manufactured price of solar products. FY22E Capacity (GW) 175 Regulatory Incentives Providing Payment Security Mechanism leading to low bids. Growth Economies Rising demand for energy, driven by GDP growth rate. Penetration to remote under served areas India's COP 21 commitment: To reduce 33-35% carbon emissions by 2030 (GW) 200 +119 GW Generation Capacity Mix 350 (GW) 175 57 Gw 15 9% India to have 175 300 150 40 23% 27 Gw 250 GW Renewable 100 57 Energy by 2022. 60 34% 200 50 150 60 34% 100 0 50 Mar-17 2022 0 Wind Utility Scale Source: MNRE, CEA Solar Utility Scale ■Solar Rooftop Other FY 13 FY 14 FY 15 FY 16 FY 17 Copyright © 2016 Your Company All Rights Reserved. ■RES Nuclear Hydro ■Thermal 23#24एनटीपीसी Improved policy Ecosystem....energising Power Sector NTPC Revised Tariff Policy Ensuring electricity for all Efficiency for affordable tariffs Environment for sustainable future Ease of Doing Business Quantum jump in Index of ease of getting Electricity UDAY A Maharatna Company ON WORLD BANK'S EASE OF GETTING ELECTRICITY INDEX (A new dawn for distribution sector) Turning around DISCOMS through Financial & Operational Efficiency Improvements 27 States & UTs are onboard Savings of ~Rs.12,000 crore due to reduction in interest cost INDIA'S RANK INCREASES 26 IN TO FROM 99 IN 2015 IN 2017 Integrated approach towards making 24x7 affordable power for All SHAKTI Scheme for Harnessing Koyala Transparently in India Transformational Policy for auction and allocation of coal linkages leading to : Affordable Power ■ Access to coal ☐ Accountability in allocation of coal From Shortage to Surplus COAL CRITICAL COM ☐ Coal Reforms Flexibility in utilization of coal Coal Swapping & Rationalization of Coal Linkages ■ Reduction in Coal Imports ■ Coal quality improvement through third party sampling, supply of crushed coal UDAY has started to improve financial health of SEBS resulting in record realization by NTPC Copyright © 2016 Your Company All Rights Reserved. 24#25NTPC: Staying Ahead of the Curve एनटीपीसी NTPC A Maharatna Company 01 Clear Growth Visibility 02 20 Leading India's Energy Transition Copyright © 2016 Your Company All Rights Reserved. 03 Backward integration leading to Fuel Security 04 H0 Aligning with Changing Norms & Disruptions 25#26Ensuring Availability Clear Growth Visibility Land Water Coal Environment Clearances PPAS Current development pipeline (in MW) 4995 20976 51671 27470 एनटीपीसी NTPC A Maharatna Company Investment Approval 130000 24888 Present Under Construction Under Tendering FR Approved Under feasibility & balance Total by 2032 Projects Under Construction Fuel Mix In MW Coal Technology In MW Group Mix In MW Coal 20120 Ultra Super Critical 2920 NTPC 15566 Hydro 819 Super Critical 16160 Domestic JVs 4090 Solar 5 Sub Critical 1040 International JV 1320 Wind 32 Total 20120 Total 20976 Total 20976 Copyright © 2016 Your Company All Rights Reserved. 26#27Clear Growth cont... commissioning targets for FY18 Project Target MW NTPC JV Projects Commissioned Lara (Unit#1) 800 800 Solapur (Unit #1) 660 660 660 Gadarwara (Unit#1) 800 800 Kudgi (Unit#3) 800 800 Bongaigaon (Unit #3) 250 250 Mandsaur Solar 250 250 Rojmal Wind 50 50 245 18 Singrauli Hydro 8 8 Nabinagar (BRBCL JV) (Unit #2) 250 250 250 Nabinagar (BRBCL JV) (Unit#3) 250 250 Meja (Unit#1) 660 660 Nabinagar (NPGCL-JV) (Unit#1) 660 660 Total FY 18 E 5438 3618 1820 1173 Lara 29/06/201 Copyright © 2016 Your Company All Rights Reserved. Solapur Kudgi Gadarwara एनटीपीसी NTPC A Maharatna Company 27#28Why to Invest in NTPC Growth in PPE, CWIP & Financial leverage एनटीपीसी NTPC A Maharatna Company CWIP PPE CWIP % of PPE & CWIP - Financial Leverage (Debt-Equity) 40.00 1.36 1.29 1.35 160% 1.33 35.00 1.20 140% 30.00 1.03 1.08 1.01 120% 25.00 0.78 100% 0.72 20.00 80% 15.00 60% 10.00 37% 38% 42% 42% 45% 43% 41% 35% 40% 5.00 23% 19% 20% 0% FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY21E FY22E Expansion in Regulated Equity FY22E FY21E FY20E FY19E FY18E FY17 Regulated Equity (Rs. in crore) 50000 100000 0 44049 All financial figures on standalone basis Copyright © 2016 Your Company All Rights Reserved. PPE increased at a CAGR of 16.48% while CWIP grew at a CAGR of 29.46% during FY 13 to FY 17. From FY 13 to FY 17, CWIP to Total fixed assets (PPE and CWIP) ranged between 37% -45%. Reversal in this ratio expected after FY 18 due to COD @ 3-4GW/year. Going forward, growth continues however the turnaround from CWIP to PPE would be quicker in Solar projects Fall in CWIP ratio will lead to RoE expansion as the equity blocked in CWIP will start earning. Benefit of financial leverage to result in higher RoE. 28#29150 100 50 0 NTPC Leading India's Energy Transition Leading Nation Towards Green Future एनटीपीसी NTPC A Maharatna Company 2017 (51 GW) NTPC 2032(130 GW) Present_2017 Nuclear Hydro Solar/Other RE Coal/Gas Fuel Type (51 GW) NTPC_2032 (130 GW) Coal/Gas 50 91 Solar/Other RE 0.6 32 Hydro Nuclear 0.8 5 0 2 NTPC Solar Power Plan....Diversifying Fuel Mix....865 MW already commissioned 10,000 MW OWN SOLAR CAPACITY ADDITION (By 2022) Current Projects-1312 MW Ananthapuramu Solar Power Project Commissioned - Ananthapuramu (AP) - 250 MW - Rooftop in VSTPP - 0.452 MW -Bhadla (Raj.) - 260 MW - Mandsaur (MP) - 245 MW 15,000 MW UNDER NSM FIRST TRANCHE 3000 MW PPA/PSA Signed for 2750 MW PSA to be signed 250 MW Commissioned 1380 MW (including Wind) - Under Execution- 37 MW - Under Tendering- 1275 MW Projects Identified for future implementation-6817 MW Transformation from barren land to 250 MW project in 1 year time ... Moving towards building 30% of non-fossil fuel basket 29#30Widening of Growth Path with Commencement of Coal Mining एनटीपीसी NTPC A Maharatna Company Status of Coal Mines Coal block GR (MMT) Mining Capacity Status EC FC MMTPA Acq. Mining/MDO Notice Pakri Barwadih 1574 18 Yes Yes Yes Mining started Chatti Bariatu 548 7 Yes Yes Yes RA Completed Kerandari 285 6 Yes St-I accorded Yes Bids Opened Talaipalli Dulanga 1267 196 18 Yes Yes Yes RA Completed 7 Yes Yes Yes MDO Appointed Other Five Mines with GR of ~3.42 BT and Mining Capacity of ~51 MMTPA - under various phases of development. 12918 ल्यूडी 4 2.27 Lakh tonne of coal extracted in FY 2016-17. Further, 3.98 Lakh tonne extracted in Q1 2017-18. 30#31एनटीपीसी New Initiatives - Dynamism to changing norms & disruptions NTPC LAC Acquisition of Chhabra Thermal Power Station A Maharatna Company MoU has been signed with Rajasthan Vidyut Utpadan Nigam Ltd. for possible acquisition of Chhabra St-I & II by NTPC in phased manner. The due diligence and availability of pre-requisites is being ensured. EV Charging Business Foraying into EV Charging business and setting up of charging stations at multiple locations. Also exploring options for engaging with storage battery developers. (Market Potential~ 90 BU) Fertilizers and Chemical Plants + Hindustan Urvarak & Rasayan Limited (HURL), a JV company of NTPC,CIL and IOC has been established to build and operate new fertilizer and chemicals complexes at Gorakhpur, Sindri and Barauni. Technical evaluation of EPC bids of the projects is under process. Marketing of Desalinated water NTPC has developed technology for production of quality drinking water from sea water utilizing heat from the flue gas of power plant. This technology has been implemented on pilot basis at Simhadri. NTPC is now looking forward to various avenues to market the same. Copyright © 2016 Your Company All Rights Reserved. 31#32Pooled Tariff - Cost Competitiveness Present Scenario States schedule power based on its own Merit Order Need ■ Beneficiaries of one region are not able to schedule power from stations in other regions since it does not have allocation. ■ As a result power from cheaper stations is not fully scheduled whereas power from costlier stations in other region is dispatched. ■ To optimally utilize the resource by running cheaper stations and reduce average cost of generation by creating framework to enable states to draw cheaper un- requisitioned power, thereby replacing costlier power resulting in savings to end customers. ☐ Already prevalent in many infrastructure sectors -Railways,steel,coal, petroleum and Power transmission. एनटीपीसी NTPC A Maharatna Company Methodology ■ The Fixed Charges of NTPC Coal and Gas based stations shall be pooled based on per MW basis and shall be apportioned to all beneficiaries on the basis of total allocation without change in capacity allocated. ■ Tariff determination as per existing CERC framework. Any increase in liability of states due to pooling shall be compensated by savings accrued through higher dispatch of cheaper ECR stations called Generation Bucket Filling (GBF). ■ Maximum utilisation of cheaper Pit head stations resulting in reduction in per unit cost of electricity. Availability of a large pool of reliable and affordable power. ◉ Benefits ☐ Optimal use of domestic coal by inter station transfer of coal. ■ Copyright © 2016 Your Company All Rights Reserved. Improvement in efficiency with respect to current level resulting in higher quantum of sharing of operating efficiency gains with States. 32#33Risks & Mitigation SURLANGE#34Key Risks and Mitigation Risk Weakness in demand Mitigation from SEBS resulting in lower PLFs ☐ Supply may outstrip demand ☐ Consistent RoE Competition from Private Players Funding Requirements for New Projects Financial distress has been forcing SEBS to opt for load shedding and thereby restrict demand Approval for extension of Tripartite agreement accorded by Gol and RBI for 10/15 years with recourse to RBI Discoms required to issue LCs covering 105% of the average monthly billing 'UDAY' scheme launched by Gol to addressing discoms financial distress Tariff revision by almost all the states Reduction in ACS-ARR gap and AT&C losses - Interest cost reduction एनटीपीसी NTPC A Maharatna Company Pick up in industrial activity leading to spurt in generation since India is the fastest growing economy Suppressed demand of discoms due to high debt. Revival in demand expected after implementation of UDAY Amended tariff policy allows for sale of un-requisitioned power and sharing of benefits. ☐ ☐ Focus on Cost optimization-Reduced ECR ☐ ☐ ☐ Adoption of high efficiency units into the existing fleet Capex intensive model delivering consistent earnings and dividends Upside from PLF incentives Improving leverage to increase ROE Increasing Solar portfolio to earn quicker returns due to lower gestation period compared to coal stations Relatively robust business model with regulated returns ☐ Gol ownership ☐ Unparallel depth and Width of management expertise and high standards of corporate governance Strong balance sheet and healthy leverage ratios Easy access to domestic and overseas debt market; mobilized debt on most optimal rates from both domestic and international markets due to low gearing and healthy coverage ratios Targeting capex of Rs.28,000 crore in FY18. Copyright © 2016 Your Company All Rights Reserved. 34#35Key Risks and Mitigation Risk Environmental Laws and Regulations ☐ Mitigation एनटीपीसी NTPC A Maharatna Company Environmental clearances for all under construction projects received Targeting 10 GW solar capacity in next 5 years Implemented FGD at VSTPP, under implementation at Bongaigoan and NIT issued for various plants Studies on Nox emissions underway SPM emission within allowed limits. Internal and external audits. Retrofitting to meet new norms ☐ Long term Fuel Supply Agreements with CIL. Coal and Gas Supply Constraints ☐ Bridge linkage allocated for upcoming capacity ☐ Delay in execution of projects Land Acquisition Uncertainty ☐ Copyright © 2016 Your Company All Rights Reserved. Govt approved flexibility in use of domestic coal to reduce the cost of power generation Captive coal blocks - to meet coal supply of ~20 GW capacity Multi-pronged strategy developed and enhanced delegation of power for quick decision making Investment approval accorded by board only after substantial acquisition of land and ensuring availability of water, coal, PPAs and environmental clearances Progressive R&R Policy, focus on consultation and participation, negotiated settlement and attractive compensation. Institutional mechanisms like Village Development Advisory Committees and Public Information Centers Changing strategy to acquire land on "willing buyer and willing seller concept". Liaising with state government 35#36Sustainability Initiatives SURLANGE#37☐ Progression-Increased Efficiency and Technology Greater Environmental Protection Technologies Introduced Adoption of super critical parameters for higher efficiency in 2004 Every 1% increase in efficiency leads to 2.5% CO2 reduction ☐ Adopted Ultra Super critical technology in 1320 MW Khargone TPP and 1600 MW Telangana-I TPP which may result in savings of 154kcal in SHR ■ All USC units now ordered are with temperature upto 600°C/ 600°C Adoption of high reheat parameters for smaller units ■ 765KV AC switchyard State of art automation technologies for C&I and Electrical systems 41.55% 40.8% 39.5% 38.9% 38.6% LL ☐ High concentration slurry disposal system & Dry Ash extraction and disposal system Vindhyachal II (Yr.1999) Simhadri II (Yr. 2011) Sipat I (Yr. 2011) Barh II onwards (Yr. 2013) Khargone (Yr. 2019) Technologies Under Development ☐ Development of IGCC suitable for Indian coal Development of Adv Ultra supercritical power plant along with IGCAR and BHEL for inlet steam temperature in the range of 700°C ☐ Use of advanced technologies in the renovation and modernization of aging power stations एनटीपीसी NTPC A Maharatna Company 46% Advance USC Pilot (Yr. 2022) Target of 20% reduction in CO2 emissions by 2022 1 0.939 0.9 0.8 0.7 0.6 20% reduction 0.751 2015 2022 Specific Emission tCO2/Mwh Constant endeavor to reduce CO2 emissions- steps to increase cycle efficiency Copyright © 2016 Your Company All Rights Reserved. 37#38NETRA- PROVIDING THE TECHNOLOGY AND R&D EDGE Spent Rs. 114.38 crore on R&D activities during the year 2016-17 Technology Development-In house & Collaborative R&D for development of new processes, tools & systems. Focus Areas: ◉ ☐ Efficiency & Availability Improvement and Cost Reduction Renewables and Alternate Energy Climate Change and Environment Scientific Support to Stations Key NETRA Initiatives Flue Gas Based Sea-Water Desalination Plant at Simhadri एनटीपीसी NTPC A Maharatna Company ■ Advanced Scientific Support through ISO 17025 accredited Labs. ■ Knowledge networking by leveraging best brains nationally & internationally and Institutional & Policy Support by apex bodies. Robotic Dry Cleaning system for Solar PV plant 100 kWp Floating Solar PV System at Kayamkulam Solar Thermal Hybrid at Dadri Solar Wind Hybrid at Kudgi Geo-polymer road using fly ash Copyright © 2016 Your Company All Rights Reserved. 38#39Committed to Comply with Environment Norms Firm Action Plan to comply with New Environment Norms Finalized FGD Plan-NTPC 159 Units 64.93 GW एनटीपीसी NTPC A Maharatna Company No FGD Plan 25 units (15 NTPC+10 JV) 2.39 GW No FGD Plan FGD being implemented/under tendering 9 Units (6 NTPC + 3 JV) 5.25 GW FGD under implementation/Tendering FGD Plan 125 Units 57.29 GW Under 1 Badarpur-I 3x95 285 1 Bongaigaon 3x250 750 Construction 2 Badarpur-II 2x210 420 2 VSTPP-V 1x500 500 Plants & Less 5 to 15 Year 3 Tanda-l 4x110 440 3 Telengana 2x800 1600 than 5 Year 4 TTPS-I 4x60 240 4 Patratu 3x800 5 TTPS-II 2x110 220 Total 9 Units 2400 5250 MW old Plants 6 Kanti 2X110 220 7 SAIL Durgapur 2X60 120 8 SAIL Rourkela 2X60 120 ■ First FGD has been commissioned at Vindhyachal 9 Patratu-l 2X110+2*105 325 42 units 24.65GW NIT issued/being issued Proposed Old Plants 33 units 13.65 GW NIT More than 15 Year Old Plants 50 units 15.58 GW To be decided after CERC Clearance Total 25 Units 2390 De Nox Action Plan: In order to check the suitability of SCR technology for high ash and abrasive ash, SCR pilot test studies is being undertaken at NTPC running stations to check the suitability of SCR system for High ash Indian Coal and results of same are expected to come from Dec. 2017-June 2018. Planning/ strategies shall be decided after the SCR pilot test result. "Going Higher on Generation, lowering GHG Intensity" 39#40स्वच्छ भारत एक कदम स्वच्छता की ओर NTPC CSR Committed for Inclusive Growth Rs. 277.81 crore spent on CSR activities during the year 2016-17. Theme of 2016-17: Clean Water & Sanitation ■ Provided clean drinking water facility at 59 villages around NTPC stations in 2016-17. ■ Deepening of ponds, water harvesting projects, construction of Ghats to improve water levels. ▪ Revival of Municipal Solid Waste Plant ■ Mechanized Sweeping, Collection and Transportation ☐ of Municipal Solid Waste (MSW) in Varanasi Setting up of Biomethanation Plants. Other Key CSR Activities ▪ Vocational training, skill upgradation and income generation programs. ANTHER एनटीपीसी NTPC A Maharatna Company "सर्वज * सर्वबैरिय जल जनित रोग जै पोरोसिस से हो ● स्वास्थ सुरक्षा सर्वजल अपनी टी.डी.एस. देन ☐ Company is providing vocational training to the village youth. ☐ ■ Company undertook livestock developments and crop management projects to enhance Income generation of the village community. ☐ Opened Jan Aushadhi stores at 12 NTPC stations and few more are expected shortly. ■ Planted 10 million trees during 2016-17, total of 32 million trees planted so far. Copyright © 2016 Your Company All Rights Reserved. प्रधानमंत्री भारतीय जन औषधी केन्द्र 2107 40#41" " " " ☐ Disclaimer एनटीपीसी NTPC A Maharatna Company This presentation is issued by NTPC Limited (the "Company") for general information purposes only and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its Directors, Promoter, affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees gives any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. The Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by or on behalf of any of them, and nothing in this document may be relied upon as a promise or representation in any respect. Past performance is not a guide for future performance. The information contained in this presentation is current and, if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person or party intending to provide finance or to invest in the securities or businesses of the Company should do so after seeking their own professional advice and after carrying out their own due diligence and conducting their own analysis of the Company and its market position. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, or published in the United States. The distribution of this document in other jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that (i) you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation or (ii) you are located in the United States and are a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, into or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the applicable securities laws of any state or other jurisdiction of the United States. Copyright © 2016 Your Company All Rights Reserved. 41#42People Power Planet-In harmony NIF THANK YOU