Investor Presentaiton

Key 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

View entire presentation