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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
FY04 FY05 FY06 FY07 FY08 FY09
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
FY04 FY05 FY06 FY07 FY08 FY09
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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
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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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