Presentation to Investors - Jaiprakash Power Ventures

Investor Presentation
December 2014
1
Overview of Jaypee Group
2
Corporate Structure
Jaiprakash
p
Associates Limited (JAL)
(
)
E&C
Cement – 19.45 MTPA
Real Estate & Hospitality
BOO Power
Listed company
Infrastructure
Cement
60.72%
Jaiprakash Power Ventures Ltd (JPVL)
400 MW Vishnuprayag HEP #
500 MW Bina TPP #
1,320 MW Nigrie TPP (UI)$
99%
86%
74%
Himachal Baspa Power Co. Ltd.@
300 MW Baspa – II HEP #
1000 MW Karcham Wangtoo HEP #
Prayagraj Power Generation Co. Ltd.(1)
(1)
1980 MW Bara TPP – 1980 MW (UI)*
Jaypee Powergrid Limited
214 KM Long Transmission System#
3 SPVs for executing an aggregate capacity of
5900 MW
74%
100%
Bhilai SAIL JV
2.2 MTPA #
71.64%
Jaypee Cement
Corporation Limited
Balajij Cement
(5 MTPA) #
Jaypee Infratech Limited
(JIL) #
165 Km long expressway
with 443 mn sq ft Real
p
Estate Development
(Yamuna Expressway)
100%
Himalayan Expressway
Limited #
(NHAI BOOT Project)
P j t)
100%
Jaypee Sports Int’l Limited.
(Formula-1) #
100%
Jaypee Fertilizers &
Industries Limited (JFIL) #
(Fertilizer Plant at Kanpur)
@ Projects
$ 660
under transfer to new entities through Scheme of Arrangement
(1) JAL has a right to subscribe up to 26% equity in this project
Projects where disinvestment recently announced
MW Unit-I COD on 3rd Sept, ‘14
* UI - Under Implementation
Market Cap. (02nd Dec’ 14) – JAL INR 72.37 Bn (USD 1.21 Bn); JPVL INR 38.14 Bn (USD 0.64 Bn) ; JIL INR 28.96 Bn (USD 0.48 Bn)
# In Operation
3
Demonstrated Execution Capability of JAL –
Completed
p
HEPs Generating
g 9840 MW between 2002-2011
JAL is the leader in the construction of multi-purpose river valley and hydropower projects
and has been involved in construction of major engineering projects over the last 4 decades
Baghalihar I **
450MW
Dulhasti
390 MW
Baspa-II*
300 MW
Chamera II**
II
300 MW
Karcham Wangtoo
1000 MW
Nathpa Jhakri
,500 MW
1,500
Vishnuprayag*
400 MW
Teesta
510 MW
Tehri
1,000 MW
X
PROUD TO
PARTICIPATE IN:

Largest Concrete Dam in
India – Sardar Sarovar

Largest Rockfill Dam in
India – Tehri

Largest Underground
Powerhouse in India
India–
Natpha-Jhakri

Second Largest Surface
Powerhouse in India –
Indira-Sagar
BHUTAN
Sardar Sarovar
1,450 MW
BAY OF
BENGAL
Tala
1,020 MW
Omkareshwar**
520 MW
Indira Sagar
1,000 MW
*BOO projects
**EPC contracts
Projects completed between
2002-2011
4
JPVL’s Business Overview
5
Power Capacity in Operation/ Under Advanced Stages of
Implementation
p
S.N.
Project
State
Fuel
Capacity
(MW)
PPA
(MW)
Merchant
(MW)
Equipment Supplier
VER / CER
Current Capacity
1.
Baspa-II
H.P.
Hydro
300
300
-
VA Tech (Austria), Voith (Germany), Alstom (France)
1.00 Mn VERs
2.
Karcham Wangtoo
H.P.
Hydro
1,000
704#
296
VA Tech (Austria), Voith (Germany), Areva (France)
3.35 Mn CERs
1,300
,
1,004
,
296
Hydro
400
400
-
Alstom (France)
1.32 MnVERs
Thermal
500
350
150
BHEL (India)
660
248
412
L&T-MHI
L&T
MHI (India/Japan)
Sub Total
1,560
998
562
Total (Operational Capacity)
2,860
2,002
858
Sub Total ((Divested Assets))
3.
Vishnuprayag
U.K.
4. Bina Phase –I
M.P.
5
5.
MP
M.P.
Nigrie (Unit-I)
(Coal Linkage)
Thermal
By Jan 2015 *
6.
Nigrie (Unit II)
M.P.
Thermal
660
248
412
L&T-MHI (India/Japan)
0.8Mn CERs*
U.P.
Thermal
(Coal Linkage)
1,980
1,782
198
BHEL (India), Alstom (France), Siemens (Germany)
1.5 Mn CERs*
Sub Total (Capacity after divestment)
4,200
3,028
1,172
Grand Total
5 500
5,500
4 032
4,032
1 468
1,468
By Oct 2015 *
7.
Bara Ph
B
Phase – I
(Units 1, 2 & 3)
* Management Estimates
Definitive document for disinvestment signed with JSW
# Tariff petition filed with CERC. Sale of energy under PPA commenced for Haryana w.e.f. 1st May’14, for UP w.e.f. 1st June’14, for Rajasthan w.e.f. 1st Oct, ‘14 and for Punjab to
commence soon.
6
Thermal Hydro
y
Mix & Merchant Power Capacity
p
y
Thermal : Hydro Mix of Power Capacity *
Saleable Generation in Mus *
10%
48%
100%
87%
77%
77%
13%
23%
23%
FY 12
FY 13
FY 14
Year
Merchant
(MU)
PPA
(MU)
Total
(MU)
FY 2012
2,249
3,111
5,360 (A)
FY 2013
FY 2013
3 542
3,542
3 172
3,172
6 714 (A)
6,714 (A)
FY 2014
4,145
4,073
8,218 (A)
FY 2015
4,236
8,663
12,899 (E)
FY 2016
8,407
18,158
26,565 (E)
90%
52%
0%
FY 11
Thermal
FY 15
FY 16
Hydro
Merchant vs. PPA *
58%
100%
57%
100%
42%
47%
50%
67%
47%
50%
73%
53%
50%
53%
50%
33%
FY 13
FY 14
FY 15
27%
FY 11
FY 12
Merchant
68%
73%
32%
27%
FY 16
PPA
* All figures assuming disinvestment of Baspa II HEP & KWHEP by June’
June 15
Optimal off-take arrangements to ensure balance between
steady locked-in cash flows (PPA) and upside from
merchant tariffs.
7
Nigrie
g TPP - 2X660 MW – Progress
g
Report
p
As on 30th Sept 2014
Nigrie STPP - Unit - I - Progress
Report
Completed
Nigrie STPP - Unit II - Progress
Report
Balance Work
Completed
Balance Work
87%
13%
Balance of Plant
100%
0%
Balance of Plant
ESP
100%
0%
ESP
97%
3%
TG
100%
0%
TG
99%
1%
Mill Bay & Bunker Structure
100%
0%
100%
0%
97%
3%
B il
Boiler
100%
0%
100%
0%
Structural Steel Fabrication
100%
0%
98%
2%
Concrete
100%
0%
Mill Bay & Bunker Structure
Boiler
Structural Steel Fabrication
Concrete
Target
Commissioning
Project
Investment as on
30th Sept ’14
Commissioned on
3rd Sept’ 14
Jan-15
Total Investment – INR 10,238 Crores (US$ 1,678 Mn)
Equity Investment – INR 3,163 Crores (US$ 518 Mn)
Nigrie
g TPP - 2X660 MW – Project
j
Highlights
g g
9
Unit ‐II Boiler Light up on Oil done on 11th November ’14
14
9
Unit –II expected to be Synchronized to the grid on January ’15
9
Majhauli Railway Station at Amelia (North) commissioned in Apr ’14
9 Expected Commissioning : Unit I : Commissioned on 3rd Sept’ 14 ; Unit II : Expected by January’15
9
Bara TPP – 3x660 MW – Progress
g
Report
p
As on 31st Oct, 14
Bara STPP - Unit I - Progress Report
Completed
80%
Balance of Plant
20%
94%
%
ESP
%
6%
100%
TG
0%
96%
Bunker Structure
4%
92%
Boiler including Mill Bay
8%
94%
Structural Steel Fabrication
6%
92%
Concrete
Target
Commissioning
Balance Work
p - 15 for
April
Unit I
June – 15 for
Unit II
8%
Oct – 15 for
Unit III
Project
Investment as on
30th Sept ’14
Total Investment – INR 10,703 Crores (US$ 1,755 Mn)
Equity
q y Investment – INR 2,823
,
Crores ((US$
$ 463 Mn))
Remarks
• FSA for 6.95 MTPA signed with NCL on 29th August, 2013
• Project lending led by SBI Bank
10
Bara TPP – 3x660 MW – Progress
g
Report
p
Contd..
As on 31st Oct, 14
Bara STPP - Unit 2 - Progress
Report
p
Completed
ESP
Balance Work
93%
Boiler including Mill Bay
Structural Steel Fabrication
Concrete
Completed
7%
99%
TG
Bunker Structure
Bara STPP - Unit 3 - Progress
Report
89%
78%
1%
11%
22%
99%
95%
ESP
5%
92%
Bunker Structure
Structural Steel Fabrication
Concrete
8%
98%
TG
Boiler including Mill Bay
1%
Balance Work
91%
78%
2%
9%
22%
100%
90%
0%
10%
11
Financial Overview
12
Power Business – Summary
y of Project
j
Status: Hydro
y
Rs in Crs (In US$ Mn)
Equity Invested
Securitized Loan*
Loan
Design Energy
(in Mus)
Baspa
491
91 (80)
440
0 (72)
( 2)
10 0
1,050
Vishnuprayag
509 (83)
775 (127)
1,774
2,070 (339)
1,377 (226)
4,114
3,070 (503)
2,592 (425)
6,938
Project
Karcham Wangtoo
Total
* VHEP, Baspa and Karcham have been successfully securitized in FY’ 09, FY’ 10 & FY’ 14 respectively.
13
Power Business – Summary
y of Project
j
Status: Thermal
Rs in Crs (In US$ Mn)
P j t
Project
Total Equity
to be Invested
Equity
Invested
As on 30th Sept’ 14
Balance Equity Design Energy
to be Invested
(in Mus)
Bina
1,317 (216)
1,211 (199)
106 (17)
3,723
Nigrie STPP
3,463 (567)
3,163 (518)
300 (49)
9,239
Bara
4,021 (659)
2,823 (463)*
1,198 (197)
13,858
8,801 (1,443)
7,197 (1,180)
1,604 (263)
26,820
Total
*Out
Out of the total capital deployed in Bara Project
Project, Rs
Rs. 340 Crs (US$ 59 Mn) have been deployed by JAL
JAL.
Total equity investments made across the projects as on 30th Sept 2014 –
~ INR 102.40 Bn (US$ 1.68 Bn)
14
Jaiprakash
p
Power Ventures - Financial Performance
In INR Mn (US$Mn)
ANNUAL
Particulars
HALF YEAR
FY 2012
FY 2013
FY 2014
H1 FY 2015
Revenue
16,863
(276)
22,908
(376)
26,775
(439)
19,884
(326)
EBIDTA
15,267
15
267
(250)
17,713
17
713
(290)
18,874
18
874
(309)
15,170
15
170
(249)
PAT
4,029
(66)
3,291
(54)
197
(3)
3,690*
(60)
FX: 1US$ = INR 61
Income Tax Benefit under section 80 (I) – A
9
Baspa – II,
B
II Vishnuprayag,
Vi h
Karcham
K
h
Wangtoo
W
t
& Bina
Bi TPP Projects
P j t are eligible
li ibl for
f income
i
tax
t benefits
b
fit under
d this
thi actt for
f a period
i d off
10 years.
9 * The operational results during the current quarter / half year have been impacted on account of (i) Lower generation of energy at
p , and Karcham Wangtoo
g
HEPs in the current q
quarter as compared
p
to corresponding
p
gq
quarter of p
previous y
year due to hydrology.
y
gy
Baspa,
(ii) The current revenue of 500 MW Jaypee Bina Thermal Power Plant is based on provisional tariff, pending final tariff determination (iii)
Higher interest on Corporate loans facilities to fund on going projects in the absence of Company's ability to raise equity due to market
conditions prevailing in the recent past.
15
Selected financial information
Balance Sheet
Rs mn (US$ mn)
Particulars
JPVL
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
Net worth
33,778
(554)
51,706
(848)
54,650
(896)
64,443
(1,056)
63,297
(1,038)
Secured &
Unsecured Debt
53,746
53
746
(881)
120,681
120
681
(1,978)
148,124
148
124
(2,428)
180,084
180
084
(2,952)
205,414
205
414
(3,367)
Net Fixed
A
Assets
t
(including WIP)
48,405
(794)
122,035
(2,000)
160,408
(2,630)
203,367
(3,334)
223,618
(3,366)
Capital
E l
Employed
d
77,895
(1 277)
(1,277)
172,388
(2 826)
(2,826)
202,769
(3 324)
(3,324)
248,460
(4 073)
(4,073)
266,818
(4 374)
(4,374)
11.52
(0 19)
(0.19)
24.67
(0 40)
(0.40)
20.82
(0 34)
(0.34)
21.97
(0 36)
(0.36)
21.54
(0 35)
(0.35)
Book Value /
Share
(in Rs/share
US$ /Share)
Fx: 1 US$ = INR 61
NB: JPVL in FY ’10 was Baspa II HEP + Vishnuprayag HEP + Nigrie TPP
whereas in FY ’11 post-amalgamation was Baspa II HEP + Vishnuprayag HEP + Nigrie TPP + Karcham Wangtoo HEP + Bina TPP
16
Way Forward
17
Salient Features of JSW Deal
Preface
The proposed share securities purchase agreement contemplates the purchase of all securities
including the entire equity share capital and debt instruments of JPVL’s subsidiary, namely, Himachal
p Power Company
p y Limited ((HBPCL)) byy the p
purchaser i.e.,, JSW Energy
gy Limited,, subject
j
to the
Baspa
satisfaction of certain conditions precedent. The consideration amount from the Purchaser shall be
approximately Rs.9700 crores subject to mutually agreed adjustments.
Conditions
Precedent
The consummation of the transaction is subject to the satisfaction of conditions precedent, some of
which are listed below:
Approval of the scheme of arrangement by the court for the transfer of two of JPVL’s operating
power plants namely, 300 MW Baspa-II Hydro-Electric Plant and 1091 MW Karcham Wangtoo
Hydro-Electric Plant to HBPCL as a going concern and on a slump-exchange basis, and the
scheme becoming effective;
Transfer and/or amendment of licenses/clearances in the name of HBPCL;
Receipt of lender consents, third party and government consents for the transaction;
Receipt of approval from the Competition Commission of India;
Approvals
The transaction is subject to the approvals of shareholders, creditors, High Court, SEBI, stock
exchanges, the Competition Commission of India, other statutory and governmental authorities and
certain third parties.
Transition&
Assistance
by JPVL
JPVL has agreed to provide for a period of one year from the Closing Date, such assistance, support
and cooperation to the Purchaser as may be required by the Purchaser on terms mutually agreed
terms.
18
Scheme of Arrangement
g
with JSW: Status
S.No.
Particulars
Date
1
1.
Board meeting to get appro
approval
al of Draft Scheme
15th Nov’
No ’ 14
2.
Filing of draft scheme and other documents with Stock
Exchanges / SEBI
22nd Nov’ 14
3.
Approval by Stock Exchanges / SEBI
5th Jan’ 15
4.
Filing of 1st motion petition with High Court of Himachal
Pradesh
7th Jan’ 15
5.
Order on 1st motion petition and approval by High Court and
dispatch of notices to shareholders / creditors
9th Jan’ 15
6.
Dispatch of notices to shareholders / creditors
15th Jan’ 15
7.
Convening of meetings of shareholders and creditors
14th Feb’ 15
8.
Filing of reports with High Court
17th Feb’ 15
9.
Filing of 2nd motion petition
24th Feb’ 15
10.
Court hearing
27th Mar’ 15
11.
Receipt of certified copy of order
15th Apr’ 15
12.
Filing of order with ROC
15th May 15
Already Held
Already Filed
19
CONFIDENTIAL
Term Loan (Debt) Status – Pre & Post Divestment
Rs. in Crs In US$ Mn
Name of the Project
Baspa II
Debt
as of 30th Sept,’14
Debt *
as of 31st March, ’15
Debt *
as of 30th June, ’15
(Post Disinvestment)
532 (87)
501 (82)
-
973 (159)
791 (129)
743 (122)
K h
Karcham
5 397 (883)
5,397
5 364 (877)
5,364
-
Bina
2,019 (330)
1,929 (315)
1,883 (308)
7,075 (1,157)
7,273 (1,189)
7,230 (1,182)
50 (8)
200 (33)
200 (33)
5,124 (838)
4,845 (792)
3,089 (505)
21,170 (3,462)
20,903 (3,418)
13,145 (2,150)
Vishnuprayag
Nigrie
Nigrie CGU
Corporate
Total
* Management Estimates
Debt/Equity as on 30th Sept’ 14 – 3.19;
Debt/ Equity as on 30th June’ 15 – 1.87
20
CONFIDENTIAL
Movement of Debt in the coming
g years
y
Rs. in Crs (US$ in Mn)
Particulars
Debt as on 31
Debt
as on 31st Mar
Mar’ 15
15
Project
Corporate
Total
(A)
(B)
Total (A+B) = C
Total (A+B) = C
16,058 (2,626)
4,845 (792)
20 903 (3,418)
20,903
(3 418)
Less
Debt Transfer to JSW
Baspa II
( )
(D)
501 (82)
( )
Karcham Wangtoo
(E)
5,364 (877)
Total (D+E) = F
(C‐F) = G
Repayment during the Year
p y
g
Project
(H)
Corporate Loans
(I)
Total (H+I) = JJ
Total (H+I) Debt as on 31st Mar’ 16 (G ‐ J) = K
Likely Debt /Equity as on 31st March’ 16 – 1.74
5,865 (959)
15,038 (2,459)
819 (134)
2,285 (374)
3,104 (508)
3,104 (508)
11,934 (1,952)
21
CONFIDENTIAL
Coal Capacity
p
y – Thermal Power Projects
j
N
Name
off th
the Project
P j t
Coal Qty required for the
P j t
Project
(MTPA)
Coa Linkage*
Coal
age
(MTPA)
2.40
CCL – 0.713
SECL – 0.829
Total - 1.542
Nigrie @
5.00
Amelia – 2.50
2 50
Dongri Tal – 2.70
Total - 5.20
Bara
8.43
NCL – 6.95
Total
15.83
13.69
Bina
* Remaining Coal Requirement to be bought from e-auction/ washeries/ imported coal.
@ Currently
tied up with the Dedicated Coal Blocks. Since these coal blocks have been cancelled, the company will be bidding for the
new coal blocks in the auction process.
22
CONFIDENTIAL
Coal Block Cancellation
9
The Supreme Court in a decision given on September 2014 has cancelled the allocation
of 204 out of the 218 blocks that various governments since 1993 had allocated to
companies for captive consumption.
consumption
9
6 months breathing
g time was g
granted to the mining
g companies
p
to wind up
p their
operations and the govt was told to hold auctions by 31st March’ 15.
9 Companies which had utilized coal from these captive blocks were asked to pay a
penalty of Rs. 295 per tonne.
9 The govt has since brought out an ordinance to make coal block allocation transparent.
9
The government has since brought out “The Coal
C
Mines (special
(
Provisions)) Ordinance,
O
2014” to ensure continuity in mining operation and for promoting optimum utilization.
23
CONFIDENTIAL
Salient Features of Coal Auction Process
9
The 74 coal blocks covered in Schedule II (42 nos.) and Schedule III (32 nos.) have been earmarked for
allotment to Government sector and for auction.
9 The Nominated Authority will fix reserve price for Government blocks and Floor price for auction based
on technical information/recommendation.
9 A company engaged in specified end use including a company having a coal linkage shall be eligible to
bid.
9 The Tender process shall include technical bid and financial bid. The tender document will specify the
weightage to be applied for technical bid and the financial bid for the purposes of determination of the
successful bidder
bidder.
9
The Nominated Authority will specify the maximum number of mines and/or coal reserves that may be
allocated to one or more persons.
9 The participants in the tender process shall be required to make payment off tender ffee on the basis off
the geological reserves.
9
Upon completion of public auction process the Nominated authority shall forward its
recommendations to the Central Government with regard to the selection of successful bidder.
bidder Central
Government may direct the Nominated authority to issue a Vesting Order in favour of the successful
bidder.
9
The time frame g
given for Request
q
for proposal
p p
is Dec 22,, 2014 and issue of Allotment letters to winners
is Mar 16, 2015.
JPVL WILL ACTIVELY PARTICIPATE IN COAL AUCTION FOR ITS THERMAL CAPACITIES.
24
Reforms in Power Sector
9
Finance ministry has appointed committee under IIFCL Chairman Mr.Santosh B Nayar, to recommend
measures to revive investments stuck power projects wherein investment to the tune of ` 6.2 lakh
crore is stranded.
9
The Committee has proposed allowing banks and lenders a one-time dispensation to provide easier
refinancing norms for all viable projects, irrespective of their loan size.
9
One time shift of all stressed but competitively bid projects to a regulated tariff regime that may even
One-time
enable banks to consider sharing a part of the burden by partially converting their debt into equity
9
The committee has also proposed setting up of a separate government entity to assess project
viability and prepare a detailed project report to ensure funding for key projects is not choked.
9
Power Industry
P
I d
under
d the
h new govt is
i receiving
i i
renewed
d focus
f
with
i h through
h
h on sorting
i
out the
h issues
i
plaguing the industry.
9
The govt believes that for GDP to grow, infrastructure including power sector needs to get back on
track.
25
Reforms in Power Sector
9
It was observed by the Govt appointed Committee headed by Sh S B Nayyar that power plants are
facing challenges like coal & gas shortage, delay in obtaining regulatory approvals, low offtake by
di t ib ti companies,
distribution
i
t
transmission
i i bottlenecks,
b ttl
k high
hi h interest
i t
t rate
t and
d rupee depriciation
d
i i ti .
9
The committee has made their recommendations to the g
govt which include the follows:
a)
Providing additional debt without the condition of bringing fresh equity
b)
Lowering interest rates
c))
Restructuring loans without classifying them as non – performing assets
d)
Extending the loan repayment period to match cashflows of the projects.
9
It is believed that based on the above suitable packages are likely to be recommended for power plants
facing these challenges.
9
Further, the govt is determined to make some sure that coal production in India double’s to ensure no
fuel shortage is seen by power companies.
POWER SECTOR REVIVAL IS ON TOP OF GOVT AGENDA
26
Shareholding
g Pattern* – Jaiprakash
p
Power Ventures Limited
All figures in %
S.N.
Category
JPVL
1
Promoters
63.60
2
Trust
11.71
3
FIIs
6.44
4
Mutual Funds
3 80
3.80
5
Bodies Corporate
4.66
6
P bli Fi
Public
Financial
i l Institutions
I tit ti
& Banks
B k
1 64
1.64
7
Public
8.16
TOTAL
No. of Shares
Face Value (Rs)
* As on 31st October, 2014
100.0
(in Mn)
2,938
10/27
THANK YOU
28

Download Report