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Annual General Meeting

Anil Sardana

CEO & Managing Director

23rd August 2017


Agenda

• About Tata Power

• Financial Performance and Statistics

• Significant Developments in the Sector

• New Paradigms and Existing Investments

• Sustainability

• Awards and Recognition


About Tata Power


India’s Largest Integrated Power Company

Fuel & Logistics

Stake in Indonesian

coal mines

Assurance of fuel

supply for all the

operational projects

Integrated coal

logistics manage-

ment through state-

of-the-art cape

sized ships

Generation

10,463 Megawatt of

installed capacity

as on 31st Mar‘17

with 30% in the

form of clean and

green generation

600 MW of new

capacity under

execution in India

and international

geographies

Distribution

Mumbai

– Over 6.75 lakh

consumers

Delhi

– Over 15.8 lakh

consumers

Ajmer

– Over 1.25 lakh

consumers

Value Added Business

TPSSL enhanced cell &

module manufacturing

capacity by 65% (to 300

MW) and 100% (to 400

MW) respectively

PM/OM services at

Malaysia, Goa and

Tuticorin

TPTCL was India’s 3rd

largest power trading

company during FY17

Transmission

Mumbai:

1,200 cKm network

21 receiving stations

Powerlinks:

1,166 km long line

connecting Tala

hydro project–

Bhutan to North

India

Coal production at

KPC, BSSR and

AGM Indonesia

during FY17 was

66.81 MT as against

65.33 MT in FY16

FY

17

1,465 MW generation

capacity added

which includes the

acquisition of

WREPL & IndoRama

Renewables Jath Ltd.

245 kV Mahalaxmi

GIS receiving station

taken in load service

Ajmer Distribution

Franchisee awarded

Consumer added:

- 25,000 in Mumbai

- 80,000 in Delhi

Strategic Engineering

Division achieved a

turnover of ` 548.14

crore with an order

backlog of ` 1,220 crore


Increasing global presence

Hydro Project -

Bhutan

Logistics

Office -

Singapore

Wind Project

– South Africa

Distribution

Consultancy

Assignment - Nigeria

Hydro Projects-

Georgia

Hydro Project-

Zambia

Rep. Office

Vietnam

Generation Assets

Coal Mines+

CKP Generation

- Indonesia

Offices

Rep. Office

Indonesia

Rep. Office

South Africa


Financial Performance

and Statistics


Improvement in Consolidated PAT

The Consolidated PAT improved on

account of higher contribution by

the coal mines, renewable

business and associates and lower

foreign exchange losses.

1355

934

FY16 FY17

Standalone PAT (` crore)#Consolidated PAT (` crore)*#

662

1397

FY16 FY17

31%

decline

111%

improvement

* Attributable to the owners of the Company

# Reported after reversing the provision (` 651 crs.) made for loss on likely purchase of shares in TTSL

The Standalone PAT was high in

FY16 on account of favorable

regulatory tariff orders received by

the Company during the financial

year


Strong Q1 results backed by renewables contribution

and strong operational performance

147

188

FY17 Q1 FY18 Q1

Standalone PAT (` crore)Consolidated PAT (` crore)*

72

164

FY17 Q1 FY18 Q1

126%

improvement

* Attributable to the owners of the Company

28%

improvement

Renewable business (Consolidated) PAT stood at ₹109 crore in Q1 FY18 as compared to ₹26 crore in

Q1 FY17.

Indonesian Coal Companies, Tata Power Solar Systems Ltd. (TPSSL), Walwhan Renewable Energy

Pvt. Ltd. (WREPL), and Tata Power Renewable Energy Ltd. (TPREL) reported strong growth and

operational performance in Q1 FY18 as compared to Q1 FY17.

Other businesses like MPL, TPDDL & others also reported higher profits as compared to

corresponding quarter last year.


Transition to Ind-AS – Key Accounting Changes

• JVs were earlier consolidated on line-by-line basis; now, the consolidation is

directly at PAT level

• Some erstwhile subsidiaries are now classified as JVs (IEL, PTL, Dugar)

• Fair valuation of current and non-current investments other than investments in

subsidiaries, JVs, Associates

• Fair valuation of hedge contracts

• De-recognition of interest on forex loan capitalized

While the reported consolidated EBITDA has decreased, the same is due to

the adoption of IndAS under which, the contribution of subsidiaries and JVs

is consolidated now only as share of profit (explained on the next slide).


Transition to IndAS – Impact Analysis

8,603

1,982

188 176 194 75 549

5,439

2,000

4,000

6,000

8,000

10,000

EBITDA as perI-GAAP

KPC, BSSR andCoal Infra

ITPC Cennergi IEL Powerlinks Otheradjustments

EBITDA as perInd-AS

FY17 Consolidated EBITDA (` Crore)

1,300

218

--

200

--

173 131

-

18

1,397

-

400

800

1,200

1,600

FY17 Profit (I-GAAP)

Decapitalization offorex loss net of

depreciation

Fair value impactof derivatives

Reversal of profit /provision booked

on long-terminvestments

Share of Profit inTata

Communications

Others FY17 Profit (Ind-AS)

FY17 Consolidated PAT (` Crore)#

FY16 EBITDA

was 8,070

(I-GAAP)

FY16 Conso-

PAT was 873

(I-GAAP)

Detailed Conso - P&L# Reported after reversing the provision (` 651 crs.)

made for loss on likely purchase of shares in TTSL


Tata Power Stock Performance

(`)Tata Power Share Price Power Index

BSE

64.7

70.673.9 73.5 72.0

78.075.3

78.273.9 75.4

79.982.6

90.5

84.281.0 80.5

17761846 1872

19962077 2079

1990 2006 2029 1996

2168 21962274

2330

2221 2226

1000

1200

1400

1600

1800

2000

2200

2400

2600

2800

3000

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Tata Power

Power Index

S&P BSE Power Index FY17: 28%

Tata Power FY17: 40%

During FY17, Tata Power’s stock has outperformed the S&P BSE Power Index by a

significant margin, delivering value to the shareholders


Significant Developments in

the Sector


Sectoral Developments

UDAY – Ujwal Discom Assurance Yojna

• Targeted at Improving Operational Efficiency of

Discoms

• Aims to reduce AT&C losses to 15% by 2018-

19 (currently claimed to be at 20.13%)

• Aims to reduce the gap between ACoS and

average revenue realized to zero by 2018-19

(currently claimed to be at ` 0.47/unit)

• Aims to reduce cost of supply by improving

coal supply

• 75% of the DISCOM debt as on 30th Sept 2015

transferred to state to facilitate financial

disburdening

Source: www.uday.gov.in (as of 25 July’17)

Your Company does not get any

contribution from UDAY, however it looks

forward to better financial and operational

state of Discoms from the perspective of

high offtake of generation and associated

creditworthiness

Flexibility in Utilization of Domestic Coal

(SHAKTI)

• GoI Scheme for Harnessing and Allocating of

Koyala (coal) Transparently in India (SHAKTI)

• Aims at reduction in the cost of electricity

generation

• To facilitate flexibility in use of coal amongst

the generating plants

• In case of use of coal assigned to the state,

power through substituted coal would be

procured on bidding basis from amongst the

competing private sector plants

The flexibility in coal allocation could help

swap of coal between operating stations of

the same promoter, as also could be an

option to blend at imported coal-based

stations


Sectoral Developments

2

4

6

8

10

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Plunging Solar Prices

India’s solar tariffs have dropped significantly

due to a sharp drop in equipment prices and

rising competition in the developer space.

Solar tariff (`/kWh)

2.44

This is a welcome sign from a

consumer and Discom perspective.

Your Company sees this as an

opportunity to add viable solar

power solutions through TPSSL.

Improving Cross Border Trade

• MoP issued guidelines to facilitate and

promote cross border trade of

electricity

• These guidelines can help develop

healthy market for power trade in the

SAARC region

• CERC has issued the Draft Regulations

seeking public comments

Your Company will be able to import

power from Dagachhu Hydro Power

Corp. Ltd., Bhutan and looks forward

to enhanced trade of power between

India and its neighboring countries


New Paradigms and

Existing Investments


Tata Power Strategic Intent 2025

• These have been arrived at by duly balancing the Company’s financial health in

terms of Balance Sheet elements (Debt and Equity Capital), and P&L Statement

elements (Profit and EPS)

• Also this growth paradigm will keep your Company relevant in the Indian Power

Sector and the peers in the Tata Group


The Changing Paradigms for Power Utilities

Generation Transmission Distribution Trading

Future Utility

Platform

Storage and

Banking Solutions

Climate Change

View

Customer Specific

Solutions (IoT)

Smart Grids and

Homes

Electric Vehicles

Big Data Analytics

Distributed Generation

Existing linear structure of Power Utilities

Emerging Circular

structure of Power

Utilities

The power utility

space is undergoing

rapid transformation

whereby the utility is

changing from being

purely a provider of

service to that of an

enabling platform

which supports

varied and evolving

customer needs


Key Priority Areas based on Transition in Utility Paradigms

DIGITALIZATION DECARBONIZATION DECENTRALIZATION

Your Company is actively engaged in all of the 3 areas to keep itself current

with the fast evolving paradigms


Emerging Business Opportunities

6.

Internet of

Things

4.

Energy

Storage

1.

Growing

Scope of

Renewables

5.

Electric

Vehicles

2.

Distributed

Generation

3.

Smart grids

& Smart

Cities


Coastal Gujarat Power Limited

• CGPL operates India’s first UMPP and is

amongst the largest power stations in the

country and is operating at benchmark

levels of efficiency

• APTEL had directed CERC to assess the

compensatory relief to CGPL as may be

available under the PPA.

• On appeals filed by Procurers in the

Supreme Court, the Court rejected the

Company’s claim on the grant of

compensatory claim due to change in

law or force majeure event.

• As the Company had not recognized any

revenue for compensatory tariff till date,

there is no impact of the Supreme Court

order on the financial statements.

• Your Company is in discussions with

procurers and lenders to find an

appropriate resolution

All efforts are underway to source coal at lower costs to cut the under recovery

as also to evolve solutions for long term sustainability of Mundra UMPP


CGPL – Proposed Win Win Scenario

Current Scenario

Fixed cost recovery with 80% availability (leading to PLF of

~70%)

Capacity: 4000 MW (5x800) with extension possibility

Life: PPA Period till 2038 and Units life till 2053

Proposed Scenario

(Competitive Tariff with full pass through of fuel cost)

Operation with higher availability (90-95%) with under recovery of fuel addressed

( Over `1,000-1,600 Crore annual benefit to procurers due to low cost power)

Capacity: 1 additional unit

( Over `1,000-1,300 Crore annual benefit to procurers due to additional low cost power)

Life: Even beyond 2038 till 2053

(Advantage to procurers by way of low cost supply for additional period)

The resolution of the issue benefits all stakeholders namely: lenders (regular repayment),

discoms and consumers (low cost supply) and promoter (no further under-recovery)


Maithon Power Limited

In FY17, the improvement in financial performance was on account of full tie up of sale of

power along with improved operational performance, lesser outages and lower operating

expenses on account of fuel.

MPL has been rated as one of the top 20 performing power stations in the country


Tata Power Delhi Distribution Limited

• TPDDL reduced its AT&C losses to 8.59% against a regulatory target of 10.5%

• TPDDL has also met peak demand of 1,791 MW in FY17

In FY17, there was a further reduction of ~ ` 150 crore in regulatory assets

outstanding (` 4,574 crore as on 31-3-17)

47.645.4

40.9

35.4

31.1

22.020.4

18.717.0

15.3

12.5 12.0 11.5 11.0 10.5

47.8

44.9

33.8

26.5

23.7

18.616.7

15.214.2

11.5 10.7 10.4 9.98.8 8.6

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

Target

Actual

AT & C Loss Reduction (%)


Tata Power Renewable Energy Limited

• TPREL, a 100% subsidiary of Tata

Power is the renewable energy arm

of the Company

• TPREL acquired WREPL in

September 2016

• WREPL is now a fully owned

subsidiary of TPREL and has one

of the largest operating solar

portfolios spread across India. It

has an operating capacity of 1010

MW

• TPREL had an overall

commissioned capacity of 1,459

MW by the end of FY17. It

commissioned 159 MW capacity

during FY17.

• The assets of WREPL are tracking

well to targets

44 MW

Rojmal

15 MW

Belampalli

100 MW

Nimbagallu

1,010 MW

WREPL

30 MW

Indo

Rama


Walwhan Renewable Energy Private Limited

• There have been reports in

the newspapers and

representations received by

the Company regarding the

acquisition of WREPL

• Evaluation of the

representations found them to

be irrelevant (interpretations

based on assets not even

acquired by TPREL) or based

on outdated facts

• Since the acquisition, the

assets are performing well and

are in line with the projections

The Board and its Committees have analyzed the deal and found it to be in

alignment with other similar transactions and value accretive to the Company

6.1

12.1

10

7.7

13.1

9

0

20

Green Infra[516 MW]Sembcorp

(12 Feb 15)

ReNew[1000MW]

ADIA(20 Oct 15)

Greenko[975MW]

ADIA(7 Jun 16)

WREPL[1010MW]

Tata Power(12 Jun 16)

Azure[1032 MW]

CDPQ(4 Oct 16)

Orange[600MW]Renew

(Ongoing)

Comparable Renewable AcquisitionsEV/EBITDA* (low is better)

*based on publically available information and internal Company analysis


• Tata Power Solar Systems Limited saw significant improvement in the bottom line due to enhanced

business volumes and efficient operational performance

• The company made a net profit in FY17, ending a 5-year period of losses

• During the year, the company commissioned a total of 326 MW of utility scale projects and booked

over 50 MW of rooftop orders

• At the end of the year, TPSSL had a cumulative unexecuted pipeline of 593 MW.

Tata Power Solar Systems Limited

TPSSL has turned around and is India’s largest solar EPC and rooftop player


Industrial Energy Limited

• IEL operates a 120 MW coal based plant in Jojobera. It also operates a 120 MW co-

generation plant (Power House #6) in Jamshedpur, inside the Tata Steel plant which is based

on blast furnace and coke oven gas.

• It has commenced operation of 2 out of 3 units of 67.5 MW each of co-generation plant at

Kalinganagar, Odisha, deploying production gases from Tata Steel’s plant.

IEL is providing reliable and cost effective power supply to Tata Steel

thereby supporting it in being a competitive steel producer


Itezhi Tezhi Power Corporation - Zambia

• ITPC, a JV with the Zambian utility ZESCO has built and operates a 120 MW hydro power

plant in Itezhi Tezhi district in Zambia.

• ITPC has been the first Public Private Partnership of its kind in the energy sector in Zambia

• Both units of 60 MW each of the 120 MW plant were commissioned during the year.

ITPC forms over 5% of Zambia’s installed capacity and provides the nation

with reliable clean power and delivers strong USD returns to your Company


Cennergi – South Africa

• Cennergi (Pty) Ltd, is

Tata Power's 50:50

joint venture with

Exxaro Resources

(South Africa)

• Cennergi announced

commencement of

230 MW wind

generation capacity

through its 2 wind

farms (Tsitsikamma

Community Wind

farm and Amakhala

Emoyeni Wind

Project in July 2016

and Aug 2016

respectively)

Cennergi windfarms are amongst the largest in Africa and have recorded

good operating performance


Dagachhu Hydro Power Corporation - Bhutan

• Dagachhu Hydro Power Corporation Limited is Tata Power's associate, with the Bhutanese

Govt. Company & its affiliates holding 74% and Tata Power holding 26%

• TPTCL has the rights to trade 100% generation from the station

• Issuance of draft guidelines by the Ministry of Power is expected to facilitate cross border

power sale from Dagachhu

DHPC supplies low cost green power to India for sale through TPTCL


Adjaristsqali Georgia LLC - AGL

• The Georgia Project is a 187 MW hydro power generation project on the Adjaristsqali River in

Georgia

• The project completed construction in July and was synchronized in August 2017. Stabilization

procedures commenced

The plant has been built in record time

It may face challenges due to weak European and Turkish power markets


Resurgent Power Ventures Pte. Ltd

USD 850

Million

Tata Power

ICICI

CDPQ Canada

KIA Kuwait

SGRF Oman

• Platform to target investment in

the power sector (operating & near

operating assets) over the next 2-

3 years

• Joint commitment of up to USD

850 million by Tata Power, ICICI,

Caisse de dépôt et placement du

Québec (CDPQ) of Canada,

Kuwait Investment Authority (KIA)

and State General Reserve Fund

(SGRF) of the Sultanate of Oman

• The Platform targets acquisition of

controlling stakes in power

generating companies (both

thermal and hydroelectric) and

transmission assets in India.

The Company would have the opportunity to have ownership in assets

without consolidating debt, as also undertake asset management and

operation contracts


Trombay Thermal Power Station

• Trombay PPAs are due for extension w.e.f 1st April 2018 and the Company is

pursuing with the regulatory authorities for its renewal

• Akin to Unit 4 (150 MW), Unit 6 (500 MW) is also proposed to be scrapped

after 31st March 2018


Coal Logistics for Trombay

• In the recent events at Tata Sons Ltd, questions were raised alleging that a

contractor (during the 1990s and 2000s) had been favored for contracts

relating to barging, dredging, shipping and painting

• The management has analyzed old records and filed a letter with the

authorities clarifying that all contracts made were in interest of the consumers

and the Company

The matter has also been analyzed in the past by the regulatory authorities

and by Board of Directors, Audit Committee and all such contracts have

been found to be in order.


Sustainability


Sustainability, Community Relations – 7 Key Thrust Areas

Tata Power has spent `22.79 crores as against the Companies Act requirement

(2% of Net profit) of `21.84 crores.

Tata Power has reached out to over 5 lakh beneficiaries through its initiatives

Vidya

Education

Samridhi & Daksh

Livelihood & Employ-

ability

Swach Jal

Drinking Water & Irrigation

Arogya

Health & Sanitation

Sanrachna

Social Capital and Institution Building

Samarth

Financial Inclusivity

Akshay Renewable

Energy


Community Relations Highlights

The CSR programs had a coverage of 230 villages. 320 schools were covered

benefitting over 60,000 school children.

Vidya Program, Maval



Health programs were implemented in 167 villages covering 1.17 lakh

beneficiaries

Arogya Program, Maithon



Social Capital and Infrastructure – Covered 8,000 households in 46 villages

Sanrachna Program, Dehrand



Livelihood and Employability programs were run in 129 villages and over 5,000

residents were covered

Samridhi Program, Mundra


Club Enerji

• Tata Power’s Club Enerji is focused on school students to champion the noble cause of

conservation of resources and moral and civic values.

• Club Enerji covers 500 schools across Mumbai, Delhi, Pune, Ahmedabad, Bengaluru,

Kolkata, Belgaum, Jamshedpur, Lonavala and five more cities.

• It has reached out to more than 1.28 crore citizens, collectively saved 17.26 million units

of electricity - equivalent to saving 17,000 tons of CO2.

• Club Enerji & Greenolution was presented at IIM – Ahmedabad in Feb 2017 in a TEDx

IIM Ahmedabad event held on the topic: “Driving conservation by shaping the future

generations”.


Awards and Recognition


Awards and Recognitions

Maithon Power Plant awarded with

Global Energy Management Award 2017

SAP ACE Award 2016

TPSDI conferred with CBIP Award for

'Capacity Building and Training’

Tata Power's Corporate Centre Carnac

building awarded "IGBC GOLD" rating


Business World ranks Tata Power as Sector Leader

Business World has recently ranked your Company a sector

leader in the Infrastructure space.

It emerged at the top as BW’s Most Respected Company:

Infrastructure


Website: www.tatapower.com

Email ID: [email protected]

Contact No: +91 22 6665 8888


Consolidated Financials – FY17 under IndAS

Figures in ` Crore FY17 FY16

Net Sales / Income from Other Operations* 27,288 28,526

Operating Expenditure (22,051) (22,354)

Operating Profit 5,237 6,172

Forex (Loss) Gain (383) (663)

Other Income 586 754

Finance Cost (3,114) (3,236)

Depreciation / Amortisation / Impairment (1,989) (1,649)

Exceptional Item (651) (98)

Profit (Loss) before Tax (314) 1,281

Tax (Expenses) or Credit 46 (681)

Net Profit (Loss) after Tax (268) 600

Share of Profit of Associates and Joint Ventures 1,217 186

Net Profit for the year 949 786

Attributable to -

- Owners of the Company 746 662

- non-controlling interests 203 124

* Including rate regulatory income/(expense) BACK


Consolidated Financials – FY18 Q1 under IndAS

Figures in ` CroreFY18

Q1

FY17

Q4

FY17

Q1

FY17

annual

Net Sales / Income from Other Operations* 6,725 6,984 6,566 27,288

Operating Expenditure (5,137) (5,820) (5,203) (22,051)

Operating Profit 1,588 1,164 1,363 5,237

Forex (Loss) Gain (113) 64 (160) (383)

Other Income 144 162 112 586

Finance Cost (929) (897) (791) (3,114)

Depreciation / Amortisation / Impairment (586) (570) (439) (1,989)

Exceptional Item - (651) - (651)

Profit (Loss) before Tax 104 (729) 85 (314)

Tax (Expenses) or Credit (263) 150 (145) 46

Net Profit (Loss) after Tax (159) (579) (60) (268)

Share of Profit of Associates and Joint Ventures 380 332 191 1,217

Net Profit for the year 221 (247) 131 949

Attributable to -

- Owners of the Company 164 (262) 72 746

- non-controlling interests 57 16 59 203

* Including rate regulatory income/(expense)

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