#1पावरग्रिड POWERGRID Transmitting Power Transforming Lives Investor Presentation May 23, 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 FY 2021-22 have not been approved by the shareholders. 2#3POWERGRID Overview Major Highlights Performance Highlights Business Outlook Sector Outlook Award पावरग्रिड POWERGRID 3#4POWERGRID Overview पावरग्रिड POWERGRID A "Maharatna" CPSE Govt. of India shareholding 51.34% India's 3rd Largest in terms of Gross Block¹ Subsidiary: 24 Nos, Joint Venture 2 : 10 Nos •Transmission Lines •1,72,437 ckm •1,352 nos •IR Capacity •97,290 MW •Sub-stations 20 4,74,457 MVA •265 nos >85% of India's Capacity Foot Prints in 23 countries Credit Ratings Domestic CRISIL ICRA CARE 'AAA' International 1-As per DPE(Gol) PE Survey 2019-20 2-Excludes JV under closure As on 31.03.2022 Moody's – 'Baa3' S&P Fitch - - 'BBB-' At par with sovereign#5Major Highlights • • • • Completion of Raigarh - Pugalur-Trichur HVDC Scheme Incorporation of POWERGRID Energy Services Limited Asset Monetized worth ₹ 8370 cr Commissioned Six TBCB subsidiaries • • • POWERGRID Ajmer-Phagi Transmission Limited, POWERGRID Jawaharpur Firozabad Transmission Limited, POWERGRID Varanasi Transmission system Limited, पावरग्रिड POWERGRID • • POWERGRID Fatehgarh Transmission Limited, . POWERGRID Mithilanchal Transmission Limited, • POWERGRID Khetri Transmission System Limited. Acquired Three TBCB subsidiaries . • POWERGRID Aligarh Sikar Transmission Limited, POWERGRID Bhadla Transmission Limited, POWERGRID Sikar Transmission Limited. 5#6Performance Highlights Project Execution Operational Performance Financial Performance Other Business Commercial Performance पावरग्रिड POWERGRID 6#7Project Execution 4,432 FY22 Performance 9,060 15,136 20,695 Q4FY22 Performance पावरग्रिड POWERGRID Capex 742 cr Standalone Capitalization * 2,144 cr Capex * 1,872 cr Consolidated Capitalization Standalone ■Consolidated Capitalization 2,182 cr Capex Capitalization figures. exclusive of FERV ( in crore) 7#8Project Execution Addition in FY22 पावरग्रिड POWERGRID Transmission Line MVA capacity Sub-Station IR Capacity 5,450 ckm 43,564 MVA 7 Nos 7200 MW 80#9पावरग्रिड POWERGRID Operational Performance Consistent Track Record amid Covid distruption Reliability (Trippings per line) 99.81% 99.75% * Availability 99.82% 99.83% 0.60 99.76% 99.71% FY18 FY19 FY20 FY21 FY22 0.46 0.39 0.36 0.33 FY18 FY19 FY20 FY21 FY22 Achieved highest availability and lowest trippings per line in last five year. * Full incentive capped at 99.75% Availability and Tripping per line are on standalone basis. 6#10Operational Performance पावरग्रिड POWERGRID Commissioning of World's first 400 kV Reactor with environment friendly Natural Ester oil • Natural Ester Oil fluid is a vegetable seed-based fluid . derived from renewable agricultural seed crops. Easily biodegradable thus leaving minimal environmental footprint. • Lower risk of fire as compared to mineral oil due to higher fire point. Line differential Protection for longer lines (> 200 kms) • Pilot project successfully completed using multiplex communication link. Better selectivity of protection system in case of high resistance faults. Improved accuracy of fault location. 10#11Operational Performance Refurbishment of old HVDC systems Refurbishment will ensure higher system availability of HVDC link, will provide reliability to the grid. 2X250 MW Vindhyachal back-to-back HVDC 1500 MW +/- 500 kV Rihand - Dadri bipole HVDC Also tested for reverse power operation form Dadri to Rihand for the first time. EMENS पावरग्रिड POWERGRID 11#12Financial Performance-Q4FY22 Standalone 10,942 10,705 Income 4,321 3,516 Q4 FY21 ■ Q4 FY22 PAT Consolidated पावरग्रिड POWERGRID 10,816 11,068 3,526 Income PAT Q4 FY21 Q4 FY22 4,156 ' (in crore) Corresponding quarter PAT growth of 23% on standalone & 18% on consolidated basis. 12#13Financial Performance-Q4FY22 पावरग्रिड POWERGRID Standalone Description Growth (Qtr ended) Consolidated (Qtr ended) Growth 31.03.22 31.03.21 (%) 31.03.22 31.03.21 (%) Income Transmission Charges. - Consultancy - Services - Telecom - Other Income 9,816 9,585 2% 10,299 10,176 1% 252 174 45% 234 151 55% 153 183 -16% 153 183 -16% 721 763 -6% 382 306 25% Total Income 10,942 10,705 2% 11,068 10,816 2% Operating Expenses (including movement in 1,358 1,356 0% 1,359 1,376 -1% regulatory deferral balance other than DA for DTL) Share of Net Profits of investments accounted for 49 54 using Equity Method EBITDA-Gross Margin 9,584 9,349 3% 9,758 9,494 3% " Depreciation 3,188 3,025 5% 3,279 3,112 5% Interest Exceptional Item Tax (Net of DA for DTL) Profit After Tax 1,928 2,103 -8% 1,917 2,008 -5% -591 0 -306 0 738 705 712 848 4,321 3,516 23% 4,156 3,526 18% (* in crore) 13#14Financial Performance-FY22 40,527 42,336 Standalone 17,094 11,936 42,698 40.824 Consolidated पावरग्रिड POWERGRID 16,824 12,036 Income PAT Income PAT FY21 FY22 FY21 FY22 (in crore) Y-o-Y PAT growth of 43% on standalone & 40% on consolidated basis. 14#15Financial Performance-FY22 Description Standalone पावरग्रिड POWERGRID Growth (Year ended) Consolidated (Year ended) 31.03.22 31.03.21 (%) 31.03.22 Growth 31.03.21 (%) Income Transmission Charges 38,595 36,457 6% 40,365 38,498 5% Consultancy Services - 753 501 50% 671 434 55% Telecom 580 708 -18% 580 708 -18% · Other Income 2,408 2,861 -16% 1,082 1,184 -9% Total Income 42,336 40,527 4% 42,698 40,824 5% Operating Expenses (including movement in regulatory deferral balance other than DA for DTL) 5,091 4,615 10% 5,134 4,653 10% Share of Net Profits of investments accounted for using 78 215 Equity Method EBITDA-Gross Margin 37,245 35,912 4% 37,642 36,386 3% Depreciation 12,551 11,712 7% 12,872 12,039 7% Interest Exceptional Item Tax (Net of DA for DTL) Profit After Tax 8,032 8,581 -6% 7,857 8,215 -4% -3,760 1,079 -3,320 1,079 3,328 2,604 3,409 3,017 17,094 11,936 43% 16,824 12,036 40% 15 (* in crore)#16Financial Performance Description पावरग्रिड POWERGRID Standalone Consolidated as on 31.03.22 as on 31.03.21 as on 31.03.22 Gross Fixed Assets ( crore) 2,49,954 2,34,284 2,62,726 as on 31.03.21 2,41,498 Capital Work-in-Progress ( crore) 7,659 18,316 13,299 25,216 Debt (crore) 1,29,365 1,41,251 1,29,365 1,41,410 Net Worth (crore) 76,152 69,579 76,247 69,936 Earning Per Share (*)# 24.51 17.11 24.12 17.26 Book Value per Share (*)# 109.17 99.75 109.31 100.26 Key Financial Ratios Debt: Equity Return on Net Worth 63:37 67:33 63:37 67:33 22.45% 17.15% 22.07% 17.21% # EPS and Book value have been adjusted for Bonus Issue 16#17Other Key Financial Information Description Surcharge Income (Consol.) Incentive (Consol.) Int. from Subsidiaries & JVs* FY22 FY21 375 744 448 481 885 1,067 Int. on differential tariff 481 2 Dividend from JVs* 68 107 Dividend from Subsidiaries* 436 547 Dividend from Associates/Others* 160 9 CSR Expenses* 271 240 Trade Receivable (Consol.) 9,475 8,629 FERV (Gross Block) 533 (439) Equity in TBCB- Operational* 2,811 3,428 Equity in TBCB- U/ Constn.* 662 588 Short Term Loan 5,300 1,800 * On Standalone basis (* in crore) पावरग्रिड POWERGRID 17#18Shareholders Return पावरग्रिड POWERGRID Consistent Dividend payout Dividend payout as % of PAT Dividend (in crore) Interim Final 10,289 1,570 54% 57% 60% 53% 6,801 40% 5,834 5,228 2,093 2,114 3,299 1,565 8,719 1,762 4,708 3,663 3,720 1,537 FY18* FY19* FY20* FY21 FY22 FY18 FY19 FY20 FY21 FY22 Bonus share issued in the ratio 1:3 * Dividend for the year, includes dividend tax Final dividend for FY 2022 - subject to approval of shareholders 18#19Telecom Performance Incorporation of POWERGRID Teleservices Limited पावरग्रिड POWERGRID Income 708 580 • 92 new customers added in FY22. 99.99% Backbone Availability. 458 PoP and 780 Pol locations. ~74,000 kms optical fiber network. Point of Presence (POP), Point of Interface(POI) FY21 (in crore) FY22 Expansion into Data Centre Business. Pilot Data Centre at Manesar(Haryana). International Long Distance (ILD) bandwidth business. Agreements signed for leasing OPGW fiber in West Bengal, Jharkhand, Assam, Bihar to enable new business opportunity with reliability.#20Consultancy Performance (in crore) 434 FY21 ■Income • 671 International • पावरग्रिड POWERGRID Foot-print 02 new countries viz. Moldoval & Guinea. 06 new orders in FY22. . 15 Ongoing assignments. • 26 EOIs submitted. • Domestic FY22 21 new orders in FY22. 68 assignments in hand. . Agreement with AFRICA-50 JDA signed for works in Kenya under PPP framework. Moldova (East Europe) Emerged most preferred bidder as "Project Management consultant". . Nepal Signed shareholder agreement for Joint Venture with Nepal Electricity Authority (NEA).#21Other related business Smart Metering पावरग्रिड POWERGRID • 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. • Discussion with the States underway for MoU route. Battery Energy Storage Systems (BESS) • BESS envisaged to be significant element of the future grid. • ⚫ SECI invited proposal for setting up ISTS-connected Pilot Project on BOOT basis. • Aggregate storage capacity of 1000 MWh (500 MW x 2 hrs). • Consultant appointed. 21#22Other related business Solar Power Generation पावरग्रिड POWERGRID 5 locations having potential of installed capacity of about 200MW p identified. •Activities for setting up POWERGRID's first commercial Solar PV Project of 105 MWp at Nagda. •Other locations are Aurangabad (Maharashtra), Durgapur (W.B.), Bina (M.P.), Itarsi (M.P.) Rooftop Solar Systems • Established Capacity - 7.6 MWp at 110 locations. • Under Implementation and Planning - 7.3 MWp. Energy generated is used for captive consumption. 22 22#23Other related activities पावरग्रिड POWERGRID • • POWERGRID released its 7th Sustainability Report 2019-21. Prepared in accordance with Global Reporting Initiative (GRI) Standards "Core". Duly validated by Independent Accredited Assurance Provider following International Standards like Accountability's AA1000AP (2018) & AA1000SES (2015) UK standards. The report is https://www.powergrid.in/sustainability-report. available on the company's website 23#24Commercial Performance पावरग्रिड POWERGRID Billing * 36,023 cr 62.46* 7,080 Outstanding dues (at end of Qtr) (in crore) 48.15* 50.08* 43.69* 4,953 5,017 3,747 4,312 Realization 2,248 2,257 2,686 * 35,295 cr 3,333 2,705 2,760 1,626 Q1FY22 Q2FY22 Q3FY22 Q4 FY22 %age realization 97.98% * Receivable (days' billing) ■O/s > 45 days ■O/s < 45 days Major Dues: J&K, Uttar Pradesh, Tamil Nadu, Maharashtra 24#25Business Outlook FY23 Capex Plan * 8,000 crore पावरग्रिड POWERGRID Work in Hand* : 53,300 cr Ongoing Projects New Projects TBCB Projects * 6,700 cr * 31,800 cr * 14,800 cr * At end of FY22 25#26Business Outlook Upcoming Opportunities under TBCB *31,850# cr पावरग्रिड POWERGRID Under Bidding 22 projects 21,200 cr ISTS Projects Bidding to be initiated 10 projects * 8,600 cr In STS Projects 2 projects Under Bidding 2,050 cr # NCT cost estimate 26#2727 22 Sectoral Growth Outlook Drivers of Growth 24x7 clean and affordable power to be available to all Increased share of RE in installed capacity and consumption Decarbonisation of transport and adoption of electric mobility Shifting demand patterns Promotion of Grid Energy Storage and Wind Energy Smart Metering for all type of customers Gol thrust on Policy and Regulatory Reforms पावरग्रिड POWERGRID India's climate change action at COP26 Target by 2030 500GW Non-fossil energy capacity. 50% energy from RE.#28Sectoral Growth Outlook Strong Growth Projected FY22 FY27 FY30 Installed Capacity (GW) 399 568 838 Installed Capacity-RE (GW) 109.8 225 450 Peak Demand (GW) 203 299 340 Energy Requirement (BU) 1566 2047 2325 Per-capita 1208* 1616 2100 Energy consumption (Units) * FY20 provisional पावरग्रिड POWERGRID Source: CTUIL Rolling Plan 2026-27, CEA 28#29Sectoral Growth Outlook ISTS expansion plan 2026-27 10,009 9.355 6,099 4,404 2,028 ckm addition 49,365 52,820 84,695 23,330 6,630 MVA addition 2022-23 2023-24 ■2024-25 2025-26 ■2026-27 पावरग्रिड POWERGRID 29,904 27,673 26,967 20,525 19,079 Estimated Investment( in cr) As per CTUIL Rolling Plan 2026-27 29 29#30Awards S&P Global Platts Top 250 Energy Company RankingsⓇ 2021 POWERGRID - a Great Place to Work® FORTUNE INDIA 500 Dun and Bradstreet PSU Award 2021 पावरग्रिड POWERGRID POWERGRID continues to be 'Fastest Growing Electric Utility in Asia Pacific' for the eighth successive year since 2014. Positioned as the 9th Fastest Growing Electric Utility globally. Ranked 68th among India's 100 Best Companies to Work For 2021. India's Best Employers among Nation-Builders 2021. Ranked 44th among FORTUNE 500 India rankings for FY2021. Ranked 44th for both FY 2021 & 2020. Power Transmission category. World CSR Congress Conferred "Best CSR Practices Award" at the 11th edition of its "World CSR Congress & Awards ceremony". The Economic Times Recognised among the "Best Organisations for Women 2022". 30#31in f www.powergrid.in Thank You पावरग्रिड POWERGRID 31