CESC - Investor Presentation July`09

8/3/2019 CESC - Investor Presentation July`09

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CESC Limited

July 2009


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CESC- An Overview

110 year old fully Integrated Energy Utility: Coal Mining - Generation -

Distribution

AchievementsBudge Budge plant received outstanding performance award from the PrimeMinister

Capacity Four coal fired stations - 975 MW, T&D loss -14% , Collection efficiency 99.5% :PLF 97% (Base Load Stations) - 500 MW Budge Budge at 100.5% PLF

Stock Listed on BSE (Code 500084); NSE (CESC)

Budge Budge First Thermal Power Plant in the world registered withUNFCCC for Carbon Credit

DemandPeak System Demand 1500 MW+

Area 567 sq.km area, 2.3 mn consumers, 16000 ckt km T&D network

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CESC-Generating Stations

Budge Budge generating Station New Cossipore generating Station

Southern generating Station Titagarh generating Station

BBGS, SGS, TGS have a combined PLF of 97.3% in FY09

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Budge Budge-III Augmenting Generation Capacity of CESC by 25%

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The nine year old Budge Budge has many distinctions

Second highest PLF among all

thermal power stations in India

Acclaimed as environment friendly

by Govt. agencies.

The CDM Project at Budge Budge

is the first thermal project in the

world to earn Carbon credits.

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Operating performance:

Annual Net generation & Electricity Sales

Generation (MU) Sales(MU)

7000

7200

7400

*6948

*7206

6000

7000

8000

*7218 *7479 *7456

6

6000

6200

6400

6600

6800

FY07 FY08 FY09

*6424

* Excluding Export

0

1000

2000

3000

4000

5000

FY07 FY08 FY09

*Excluding Peaking Station


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Operational Efficiencies

10 10 10 10 10 10 10 10 10

12.8 11.98.8 7.3 6.3 5.5 4.7 3.9 3.4

5

10

15

20

25

PLF%(excludingpeaking Station)

T & D Loss(%)

72 7376

8086

94 94 97 97

20

40

60

80

100

120Pilferage

Technical

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

7

861

749

857960

1234

1404

7

160

418 458 441

302

0

200

400

600

800

1000

1200

1400

1600

FY04 FY05 FY06 FY07 FY08 FY09

Power Import(MU)

Power Export(MU)

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09


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Tariff (Rs./ unit)Tariff (Rs./ unit) PAT (Rs. million)PAT (Rs. million)

Tariff & Profitability

4.15

4.03

3.813.74 3.76

3.863.91

823

14721775

3007

3554

4097

500

1000

1500

2000

25003000

3500

4000

4500

Debt / Equity RatioDebt / Equity Ratio EPS (Rs. / share)EPS (Rs. / share)

FY'04 FY'05 FY'06 FY'07 FY'08 Feb'08 FY'09

12

20 23

36

3033

0

5

10

15

2025

30

35

40


8

2.11

1.42

1.06

0.750.55

0.65

-

0.50

1.00

1.50

2.00

2.50

FY'04 FY'05 FY'06 FY'07 FY'08 FY'09



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Haldia Phase I, West Bengal

Dumka,

Jharkhand

Capacity (MW)

1000

1500

Budge Budge

Thermal/Hydel Power

Plants in WB/Other States

Dhenkanal,

Orissa

500

70

60

50

40

4540

60

Cost Rs bnGeneration

Regulated Power

Merchant Power

Cost (Rs.bn)

FY09-10 FY12-13 FY13-14 FY13-14

250

0FY13-14

10

2012

26

Budge Budge and Haldia plants will help to

attain self sufficiency in meeting Base Load

requirement.

Merchant Power Plant

Pit head / load centre station with fuel linkageLong term PPA for 50% power to meet Debt ServicingDispersed locations for spreading risk 9


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Growth Plans

Generation Increasing the capacity to more than 5,000 MW from existing 975 MW

Location Purpose Size Cost

(Rs.bn)

Commissioning Remarks

1. Budge Budge,

West Bengal

LicenceArea

250MW 12 2009-10 Under implementation,Commissioning in Sept09

2. Haldia Phase I

Licence 600 MW 26 2012-13 75% Land acquired

es enga ong erm n age o a ne

Environmental clearancereceived,

Financial in Q2 FY`10

3. Dumka,Jharkhand

Merchant 1000MW 45 2013-14 110 MT coal block allocated

MOU signed with JharkhandGovt.

Land acquisition processinitiated

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Growth Plans

Generation ContdLocation Purpose Size Cost

(Rs.bn)

Commissioning Remarks

4. Dhenkanal,

Orissa

Merchant 660MW X 2 53 2013-14 MOU signed, Land

acquisition process initiatedCoal allocation beingpursued

5. Thermal/Hydel Merchant 1000 MW 40 2013-14 MoU signed with Bihar Govt.

Power plants inWB/Other States

for project in Pirpainty(Phase I 1000 MW)

4170MW 176

Strategy

To attain self sufficiency in meeting Licence Area requirement

Merchant Power Plant

- Pit head power station or load centre station with fuel linkage

- Long term PPA for 50% capacity to ensure Debt Servicing

- Dispersed locations for spreading risk

Separate SPVs (subsidiaries) for Generation Projects11


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To receive 700 MW by 2011-12Connectivity to National Grid to

facilitate export of power

Distribution

220/132 kv Network Augmentation - Rs.4.5 bn by 2011

Reorganisation following NCGSdecommissioning

Downstream transmission ofpower to different load centres

on commissioning ofBudge Budge and Haldia Phase I

Routine Capital Expenditure Rs. 3 bn per year

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Growth Plans

Financing and Return on Investment

To be financed by 70:30 Debt Equity Ratio

E uit enerall from Internal Accrual balance e uit infusion at Holdin Com an

Financing and Return on Investment

(licence area projects) and SPV level (Merchant market Initiatives)

Return on licence Area Investments 14% post tax + Incentive and Normative gains

Potential for substantially higher return in Merchant market Initiatives

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Opportunities

Regulatory Environment

Performance based regulations introduced by the

State Regulatory Commission inspired CESC to move

towards higher efficiency level

Cross Subsidies Cross subsidies in tariff have declined, making tariff

near average for all consumers

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Food | Fashion | Home | Entertainment

The baseline serves as an invitation to the shoppers to aninternational experience with respect to products, ambience,

quality, price and engagement

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Rs 1000 crores food-first, multi-format retailer

Indias oldest retail chain since 1863 introducing Indian consumers to the concept oforganized retail

Run two popular store formats

Hypers Convenios

Launched Indias first hyper market in 2000 in Hyderabad

Now in 50 cities with around 256 stores, spread over 1.1 mn sq ft trading space

Spencer`s Retail

Punjab, UP, Rajasthan, Delhi ,Haryana Kerala, Andhra Pradesh, Tamil Nadu, Karnataka

West Bengal, Jharkhand, Orissa

Maharashtra, Gujarat

Employ 6000 retail professionals

Garner 60 million footfalls per annum Stock approximately 30000 SKUs in a typical hyper store

Has an extensive private label program across food, fashion, home and entertainment -20 brands and more than 6000 SKUs

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Where is our brand positioned?

SEC A/A+

Retail

Niche retailers

Food &Grocery

LifeStyle

LifeStyle

Consumer Spending

tiator

Range,Assortmint, Superior

Service,

SEC A/B+

SEC B/C

Organiz

e

Unorganized sector

Mass Market /Discount retailers

Spencers

Purch

asingPower

Differe

Price,

BasicService

Ambience.Looks

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Snapshot

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Snapshot

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Snapshot

Year of Establishment

Trading Area(000 sqft)

1996

1,130

No. of Stores in operation

Annual Turnover (Rs. Mn)

Customer Care Associate

251

10,714

6,500

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Store Glimpse

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Lifestyle Ambience-Identifying Zonal Transitions

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Entry HotspotHigh Points

Ambience taste the world

Depicts the values of

Spencers as a Food First

retailer with a Taste the

World mindset throughstrong use of theatre and

edutainment.

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Merchandise- Apparel-Spencers Pvt. Label

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Some Intl Tie-ups exclusively at Spencers

Beverley Hills Polo Club An international fashion brand of lifestyle clothing for men and women

Presents casual and formal wear, winter wear, eyewear and watches

BHPC merchandize is available in all the Spencers Hypers Plans to launch independent stores for BHPC. The first BHPC store atSpencers, Gurgaon, MGF Megacity Mall follows the Exclusive Brandedoutlet concept over an area of 1000 sq.ft

Five of such standalone stores are expected to be launched in next 2-3months in the National Capital re ion NCR

Ladybird

An international fashion brand of lifestyle clothing forChildren

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The Spencers Experience EnhancersChad Valley, one of UKs leading toy brands from the

house of Woolworths, UK Home of fun and imaginative play.

Caters to children of all age group.

Range of interactive games, outdoor activity packs, arts andcrafts, .remote control fun cars, and the cuddliest soft toys

Launched a 1600 sq feet exclusive branded outlet atSpencers South City, Kolkata, which is the first Chad Valleyexclusive outlet in Asia.

Au Bon Pain, the Boston-based fast casual dining and

bakery caf chain Standalone outlets which will serve a build-it yourself range

and assortment of breakfast and lunches like soups, stews,sandwiches, salads, bread & bakery items, confectionariesand hot and cold beverages.

Keeping in mind the cultural and traditional dietary needs, themenu in India will also include a line of vegetarian dishes.

Launching 5 Au Bon Pain cafes in Bangalore by Aug`09.

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The Past Situation

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Trading area (000 sq ft)

1155 1130

0

200

400

600

800

1000

FY'08 Mar'09


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Trading Area (sq ft)Store Count

Dimensions of the Business

3,00,000

4,00,000

5,00,0006,00,000

5,40,000

4,10,000

100

150

200162

As on Mar `09

-

1,00,000

2,00,000

Hyper Super Daily Express

1,05,00075,000

0

50

Hyper Super Daily Express

21 14

59

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Current segment wise sales

Bakery Dairy

The focus is on increasing the sales from the apparel segment.

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Spencer's Path Forward

New tie-upsin variouscategories

Selectivegrowth inbi box

GrowTopline toRs. 1000

formats

Focus onbottom-

line

Costcurtailme

nt

per sq.ft pencer s targets

breakeven in 12months

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Thank You

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CESC - Investor Presentation July`09

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