TORNTPOWERNSE6 August 2021

Torrent Power Limited has informed the Exchange about Investor Presentation

Torrent Power Limited

E3-torrent

PoweR

August 06, 2021

To, Corporate Relationship Department BSE Limited 14th Floor, P. J. Towers, Dalal Street, Fort, Mumbai-400 001 SCRIP CODE: 532779

To, Listing Department, National Stock Exchange of India Limited "Exchange Plaza", C - 1, Block G Bandra- Kurla Complex, Bandra ( East), Mumbai 400 051 SYMBOL: TORNTPOWER

Dear Sir/ Madam,

Re: Investor Presentation

Investor Presentation on Unaudited Consolidated Financial Results for the quarter ended June 30, 2021 is enclosed for your records.

Thanking you,

Yours faithfully,

For Torrent Power Limited

~C_ . ~

RahulShah Company Secretary & Compliance Officer Encl: As above

Regd. Office : "Samanvay", 600, Tapovan, Ambawadi, Ahmedabad - 3800 15, Gujarat, India Phone: 079-26628300 www.torrentpower.com

TORRENT POWER LIMITED CIN : LJ I 200GJ2004PLC0«068

Torrent Power Limited

Investor Presentation Q1 FY 2021-22

DISCLAIMER

from the views expressed herein.

This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially Investors/shareholders/public are hence different cautioned not to place undue reliance on these statements/details, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. None of respective affiliates, advisors or the companies described herein or any of representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the Materials or their contents or otherwise arising in connection with the Materials. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed herein are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the information, opinions or forward-looking statements expressed in this section, consequent to new information, future events or otherwise.

their

PRESENTATION OUTLINE

TORRENT GROUP

TORRENT POWER LIMITED

OVERVIEW OF OPERATIONS Q1 FY 2021-22

ESG PRACTICES

INVESTMENT RATIONALE

FIVE YEAR TREND: KEY FINANCIAL & TECHNICAL STATISTICS

TORRENT GROUP

TORRENT PHARMACEUTICALS LIMITED • A generics pharmaceutical major with strong global footprint • Ranked in top 10 in Indian pharma market with leading position in niche

therapeutic areas

• Ranked No. 1 among Indian Pharma companies in Brazil, Germany & Philippines

TORRENT POWER LIMITED • Leading private sector Integrated Power Utility with presence across generation,

transmission and distribution

• Lowest distribution losses in the country • 24 X 7 power supply in licensed areas • Excellent operational track record with delightful customer service

TORRENT GAS PRIVATE LIMITED • New business vertical for City Gas Distribution business • 13 CGD areas won in the 9th & 10th Round of Bidding by PNGRB • 3 CGD areas acquired from incumbent players • Capex plan of ~ ₹ 10,000 crs over next 5 years.

TORRENT GROUP

Turnover

$ 2,745 Mn

Enterprise Value $ 10,946 Mn

Market Cap $ 9,581 Mn

Employees

21,700+

Spreading smiles Illuminating Lives

Not just healthcare… Lifecare

Generating Trust. Distributing Opportunities.

Turnover: $ 1,089 Mn

Enterprise Value: $ 7,110 Mn

Market Cap: $ 6,607 Mn

Employees: 13,350+

Turnover: $ 1,656 Mn Enterprise Value: $ 3,836 Mn Market Cap: $ 2,974 Mn Employees: 7,700+

Building pan-India state-of-art city gas distribution networks in 16 GAs across 7 States

Employees: 650+

TORRENT POWER LIMITED

Thermal

MW - 2,730 state-of-art gas power based plants

- 2730 MW of gas

based plants

- 362 MW of coal based plant

- 362 MW of coal

based plant

Spreading smiles Illuminating Lives

Solar - 138 MW oper- ational capacity - 138 MW of over 2 locations

operational - 400 MW under- portfolio development

- L1 for 300 MW. awaited, LOA currently sub- judice

- SPA executed for 50 MW

Wind - 649 MW oper- ational capacity - 430 MW of operational 7 over portfolio locations

- 975 MW under

- 115 MW pipeline project under- development

Transmission - 355 kms 400 kV & 128 Kms of - 355 km 400 kV 220 KV, double circuit lines to double circuit evacuate lines to evacuate power from gas power from gas based plants based plants

Distribution

- Licensed distribution: - Licensed distribution Ahmedabad/ covering areas Gandhinagar, Ahmedabad / Surat, Dahej SEZ Gandhinagar, Surat, & Dahej & Dholera SIR SEZ - Franchised - Franchised distribution: distribution covering areas Bhiwandi, Agra & Bhiwandi & SMK Agra

ASSETS AT A GLANCE

TORRENT POWER LIMITED

GEOGRAPHICAL FOOTPRINT

TORRENT POWER LIMITED

PORTFOLIO OF ASSETS : THERMAL GENERATION

Particulars

Sugen

Capacity (MW)

1147.5 (3 x 382.5)

Unosugen

382.5 (1 x 382.5)

Dgen

1200 (3 x 400)

Amgen

362 (1 x 120, 2 x 121)

Plant Type

Gas-based CCPP

Coal Based

Location COD

Fuel

Near Surat, Gujarat August - 2009 Domestic Gas & Imported LNG

Near Surat, Gujarat April – 2013

November - 2014

Near Bharuch, Gujarat Ahmedabad, Gujarat

Imported LNG

PPA

835 MW for Distribution areas of Ahmedabad / Gandhinagar & Surat, and 50 MW with MP

278 MW for Distribution areas of Ahmedabad / Gandhinagar & Surat

No tie up

Others

Contracted Storage-cum-Regasification capacity of 1 MTPA with Petronet LNG, Dahej Terminal for 20 years from April 2017

1988 Domestic & Imported Coal Embedded generation for licensed areas of Ahmedabad / Gandhinagar

TORRENT POWER LIMITED

PORTFOLIO OF ASSETS : RENEWABLE GENERATION

Particulars

Solar

Wind

Capacity (MW)

Location

49.6

201.6

50.9

50.4

120

126

Patan in Gujarat

Adjacent to SUGEN Plant, Gujarat

Jamnagar in Gujarat

Kutch in Gujarat

Rajkot in Gujarat

Bhavnaga r in Gujarat

Gulbarga & Raichur in Karnataka

Osmanabad Maharashtra

Kutch, Gujarat

COD

FY 15

FY 16

FY 12

FY 17

FY 19

FY 18

FY 20

Tariff (₹/kWh)

PPA

10.03

6.74

4.15

4.19

3.74

2.87

3.46

FiT with Company’s Licensed Distribution business

FiT with GESCOM, Karnataka 29.50%

MSEDCL (TBCB)

PTC (TBCB thru SECI)

27.54%

20.51%

FY 21 PLF

19.02% 16.79% 16.36% 23.68% 24.95% 26.14%

New Projects: a. PPA signed with GUVNL for 100 MW at tariff of ₹ 1.99/unit for 25 years. SCOD: July 2022. b. PPA signed with TPLD for 300 MW at tariff of ₹ 2.22/unit for 25 years. SCOD: Nov 2022. c. SPA executed for acquisition of 50 MW solar power project. Tariff ₹ 4.43/ unit. Balance life ~22 years. d. L1 for 300 MW bid in Andhra Pradesh. LOA awaited, currently sub-judice

TORRENT POWER LIMITED

Particulars

PORTFOLIO OF ASSETS : LICENSED DISTRIBUTION Ahmedabad/ Gandhinagar

Dahej

Surat

Dholera SIR

Licensed Area

~ 356 sq. km. ~ 52 sq. km.

~ 17 sq. km.

~ 920 sq. km.

Peak Demand(FY21)

1,578 MW

623 MW

78 MW

License validity

Till 2025

Till 2028

Till 2034

Till 2044

 T&D loss 5.5% during FY 21, is amongst the lowest in the country;

 Second

Licensee Dahej SEZ;

 Major project on DMIC,

to be developed global into manufacturing hub supported by world class infrastructure;

Accolades / Highlights

 Substantial

distribution network undergrounded;

 Consumers enviable availability which is highest in the country;

of among

enjoy power 99.9%, the

 Minimal

Distribution losses;

 ~99.9% power reliability;

 New state-of-art network & a large industrial base will ensure minimal T&D losses & low cost of supply;  Planning & development of an efficient distribution network is under progress;

 Current development plans of the DSIR Authority, an investment of about ₹1,200 Crore is envisaged over next 10 years to cater to demand of about 425 MVA;

UT of Dadra & Nagar Haveli (DNH) and Daman & Diu (DD): Emerged as the successful bidder for 51% stake in licensed distribution operations in the UT of DNH and DD. LOA awaited, currently sub-judice.

TORRENT POWER LIMITED

PORTFOLIO OF ASSETS : FRANCHISED DISTRIBUTION

Particulars

Bhiwandi

Agra

Shil, Mumbra, Kalwa (SMK)

Licensed Area

Peak Demand (FY21)

License validity

Accolades / Highlights

~ 721 sq. km.

~ 221 sq. km.

~65 sq. Km.

574 MVA

449 MVA

126 MVA

31st March 2030

 Reduction

AT&C losses from 58.77% at the time of takeover to 13.50% in FY 21.

 Reliable power supply & customer

improved services

25th Jan 2027  Country's first unique PPP franchisee distribution agreement with MSEDCL, now adopted as a standard model distribution for reforms in the country

 Reduction in AT&C losses the time of

from 58% at takeover to 16.22% in FY 21.

 Reliable power

supply &

improved customer services

29th Feb 2040  SMK operations

taken over w.e.f 1st Mar 20 under competitive bidding process;  ~₹300 Crs of in

capex estimated the franchised area over the of agreement Crs which expected to be invested in first 5 years;

~₹150

term,

 Reported AT&C losses of 47% in FY 17 estimated to come down to 12% over 15 years;

OVERVIEW OF OPERATIONS – Q1 FY 2021-22

Consolidated Financial Statement (₹ in Cr.)

Q1 21-22 Unaudited

Q1 20-21 Unaudited

Growth %

Revenue from Operations

Power Purchase Cost

Material Cost & Change in Inventory

Contribution

Other Income

Gen. & Admin Exp.

PBDIT

Finance Cost

Depreciation & amortization

Profit Before Exceptional Items & Tax

Exceptional Items

Profit Before Tax

Tax Expenses

Profit After Tax

OCI / (Exp.) – net of tax

TCI

3,099

1,902

1,161

432

765

163

329

273

208

209

3,007

1,605

1,375

406

1,004

220

316

468

374

-6

368

-16%

-24%

-42%

-44%

-43%

FY 20-21 Audited

12,173

6,969

161

5,043

142

1,577

3,607

776

1,280

1,552

256

1,296

1,300

OVERVIEW OF OPERATIONS – Q1 FY 2021-22

Total Comprehensive Income (TCI) for the quarter is lower by ₹ 159 Crs compared to Q1 of previous year. However, both the quarters were impacted by one-off items. The current quarter has a net one-off charge of ₹ 21 Crs and the comparative quarter in the previous year had a net one-off gain of ₹ 234 Crs. Adjusted for these, the TCI has increased from ₹ 134 Crs to ₹ 230 Crs, ie 72%.

The major reasons for improvement in the adjusted TCI for the quarter on y-o-y basis are:

Significant Reduction in T&D losses in franchised distribution businesses, which was

severely impacted in comparative quarter of last year due to Covid 19 pandemic;

 Decrease in interest cost, both due to lower debt and reduction in interest rates;

 Lower contribution from merchant power sales in gas based businesses;

OVERVIEW OF OPERATIONS – Q1 FY 2021-22

Q1 Thermal PLF (%)/ Net Generation (MUs)

73.4%

67.0%

64.2%

1565 MUs

1632 MUs

596 MUs

36.5%

297 MUs

69.6%

500 MUs

16.9%

117 MUs

41.5%

42.0%

2715 MUs

2729 MUs

44.8%

38.4%

2597 MUs

2228 MUs

28.9%

736 MUs

0.0%

SUGEN 1147.5 MW

UNOSUGEN 382.5 MW

DGEN 1200 MW

GAS PLANTS 2730 MW

AMGEN 362 MW

THERMAL 3092 MW

Q1 2020-21

Q1 2021-22

OVERVIEW OF OPERATIONS – Q1 FY 2021-22

Q1 Renewable PLF (%)/ MUs Dispatched

32.1%

29.3%

264 MUs

413 MUs

403 MUs

20.0%

18.5%

60 MUs

56 MUs

WIND 649 MW

SOLAR 138 MW

Q1 2020-21

Q1 2021-22

OVERVIEW OF OPERATIONS – Q1 FY 2021-22

Q1 USO/Purchase (MUs)

2,216

1,784

855

464

A'bad

Surat

155

Dahej Q1 2020-21

785

435

504

569

197

206

Bhiwandi

Agra

SMK

Q1 2021-22

T&D Loss (%)

15.42%

7.70%

3.15%

2.61%

0.64%

0.40%

24.53%

11.56%

22.75%

17.43%

52.56%

43.20%

A'bad

Surat

Dahej

Bhiwandi

Agra

SMK

Q1 2020-21

Q1 2021-22

Q1 2020-21

Q1 2021-22

ENVIRONMENTAL, HEALTH & SAFETY PRACTICES

Company recognizes the value of the environment to the community and future generations and is committed to manage its businesses as a responsible Corporate Citizen.

• 100% utilization of Fly Ash generated from coal plants

• Use of recycled papers for energy bills & stationaries with ~57% of payments received through electronic medium;

• ~90% generation capacity

• ~12.5% of power

requirement sourced

sourcing cleaner fuel

from Renewable Energy

• ~70% Capacity

registered under CDM mechanism of UNFCCC.

• Reduction in T&D at Bhiwandi & Agra from >50% to ~15% thereby reducing energy requirement.

• Installed

solar

roof-top

for

captive

consumption.

• Annual

reduction of ~8.5 million MT CO2 possible from Gas power 18 million MT plants. reduced till date from CDM registration.

based

• Re-use of

treated effluent

water in horticulture.

• Installation of more than 7,000 state-of- insulated

technology

SF6 gas

the-art switchgears;

• Use of Horizontal Directional Drilling technology instead of soil excavation for cable laying;

• Energy

conservation

awareness

programmes amongst customers;

• Ahmedabad, Surat have been awarded five

star rating by British Safety Council.

• DAHEJ Distribution awarded with the prestigious sword of honour by British Safety Council;

• ISO 9001

ISO (Quality), ISO 14001 (Environment), 45001 (Occupational Health), ISO 50001 (Energy), implemented at most of the units.

• Gas based plants certified Place

for Management System

Work

• Implemented

“Behaviour Based to (BBS) develop & inculcate safety as a behavioural aspect.

Safety”

Generation

Distribution

Certifications

ENVIRONMENTAL, HEALTH & SAFETY PRACTICES Existing gas based plants well below baseline GHG Emissions.

GAS PLANTS - GHG Emissions (tCO2/MWh)

Baseline (CEA)

TPL

0.36

0.45

0.36

FY18

FY19

FY20

FY21

Air emissions of gas-based generation plants

Water consumption of thermal generation plants below statutory limits

SOX, NOX, PM (kg/MWh)

SOX

NOX

SPM

0.10

0.09

0.12

0.01

0.00

0.01

0.00

0.01

0.00

FY18

FY19

FY20

FY21

Water Consumption (m3/MWH)

Stat. Limit

TPL - Coal

TPL - Gas

3.66

3.16

3.12

3.50

3.30

1.13

FY18

FY19

1.07

FY20

1.11

FY21

ENVIRONMENTAL, HEALTH & SAFETY PRACTICES

Net Carbon emission (million MT)

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

2.32

1.51

0.81

FY18

3.16

1.72

1.44

3.22

1.72

1.51

2.23

1.25

0.98

FY19

FY20

FY21

Emission - Gas

Savings - Renewable

Net Emissions

WAY FORWARD Incremental capacities to come from renewables with no new thermal generation capacity planned.

SOCIAL PRACTICES: THRUST AREAS FOR CSR ACTIVITIES

Education & Knowledge • SHIKSHA SETU (₹ 0.37 Cr) : Education programme in rural & slum areas enhancing learning of students through based workshops education covering 4,600+ students, 150+ teachers in 13 Government schools • 4 sets of practical

assignments prepared covering 4,500+ students Separate and 120 450 assignment remedial students;

teachers; prepared

technology

for

6-8 with

• Conducted 2 virtual workshops, for the std teachers participation of ~ 78+ teachers from 36 schools of Siksha Setu/ Chappi- Memadpur / Other Schools (around project schools)

• Other activities undertaken includes Supporting Primary & Secondary School.

Healthcare Sanitation & Hygiene

• REaCh (₹ 33 crs) - Pediatric Healthcare programme (since 2016) is divided into 3 main pillars • Shaishav: Focused on health of children of age upto 6 yrs. Iron supplements have been provided to assessed with 26,946 anaemia; >18,000 children have been brought out of malnourishment till date

children

• Jatan: Focused on health care of children upto 18 yrs. Initiated with 4 state of the art paediatric healthcare building facilities. hospital with beds inaugurated in FY20; Audio video consultation started at Sugen and for Pakhajan beneficiaries;

Extended

over

150

• Muskan:

Focuses

providing on counseling & support rural to adolescent girls & providing free health & hygiene kits covering girls from 125 village;

• Prevention

than

better

cure initiative: Started last year for rural under privileged population with more than 40,000 villagers & 65,000 children from 493 schools benefited.

Social Care & Concern

• Development & Maintenance of Public

Parks (₹ 2 crs): • Seven parks (~33,600 sq. mt.) have been fully developed and opened for public use.

• Civil works of another two parks

(~66,975 Sq. mt) in progress.

• COVID Care:

• Facilitated vaccination for employees

/ family members; Covid for

• Care

affected

cases undergoing home quarantine and coordination with Hospitals for those requiring hospitalization.

SOCIAL PRACTICES: COMPANY EMPLOYEES

Company belief: Each milestone achieved is an outcome of efforts, dedication & conviction demonstrated by its employees

7,800+ Permanent / 8,900+ contractual Employees

670 Women Employees & 25 employees with disability

Key statistics: FY21

Nil Human rights / Sexual Harassment complaints

Nil Child / force / involuntary labour complaints

Company Policies to promote Human Rights:

• Policy on Protection of Women against Sexual

Harassment at Workplace • Conviction for Safety Policy • Policy on Financial Support in the event of

Demise

• Mediclaim Policy for Employees • Policy for Medically challenged employees • Grievance Redressal Mechanism • Equal pay for Equal work without discrimination

on the basis of gender.

Torrent Groups participation in fight against COVID 19 • • •

Pledged support of ₹ 100 crores for COVID relief including PM-CARES Fund Initiatives for providing essential medicines free of cost, provision of PPEs to healthcare workers Ensuring full payment of wages to employees (including contract & construction workers)

GOVERNANCE PRACTICES Companies Corporate Governance philosophy revolves around three core principles of TRANSPARENCY, INTEGRITY and ACCOUNTABILITY in organising/managing aspects of its activities

>75% NED’s on board

COMMITTEES IN PLACE (CHAIRED BY ID’S):

• Audit Committee (100% ID’s)

• Stakeholders’ Relationship Committee (33% ID’s)

BOARD COMPOSITION

• Nomination & Remuneration Committee (67% ID’s)

33% women directors

67% IED’s on board

• CSR Committee (67% ID’s)

• Risk Management Committee (67% ID’s)

MAJOR POLICIES IN PLACE: • Directors’ appointment: Ensuring diversified board with mix of strategic leaders, industrial experts & financial experts • Code of Conduct: Applicable to all Employees & Directors, to ensure ethical & anti-corrupt conduct • Vigil Mechanism: Ensuring disclosure of concerns & grievances on unethical behaviour, improper/ illegal practices, wrongful conduct and instances of leak or suspected leak of Unpublished Price Sensitive Information (“UPSI”) taking place in the Company

INVESTMENT RATIONALE

• State of the art gas

based plants

• Direct import of LNG

at efficient cost

• Low environmental footprint & large quantum of renew- ables in power system creates a favourable conditions for sustain-able operations of unutilised capacities

• Need for a robust grid to support increase in renewables capacity presents attractive opportunities for private transmission players

• Robust regulations & limited project risks

• Company’s right to win : strong project development & financial capabilities

• Huge growth potential in renewables; returns above COE for selected projects

• Company’s capability to win coming from strong project development, O&M & financial capabilities

• Opportunity of

flexible generation to sell pooled RTC power [Renewable + Gas] at competitive cost on a long term basis

Thermal Generation

Renewable Generation

Transmission

• Opportunities for private sector considering the endemic inefficiencies of the public distribution sector

• Successful

privatization of Union Territory utilities will spur the States to follow the path

• Torrent has a strong distribution platform to take advantage of upcoming Franchisee & privatisation opportunities in distribution sector

Distribution

INVESTMENT RATIONALE

Regulated businesses ensuring stable returns

Excellent operational records

Promising growth opportunities

Unmatched distribution model

Strong project management skills

World class generation assets

Value Creation

Rational allocation of capital

5 YEAR TREND - FINANCIAL STATISTICS

Revenues from Operations (₹ Crore)

EBIDTA (₹ Crore)/EBIDTA Margin (%)

11512

10000

13151

13641

12173

3381

3389

3734

3607

29%

26%

27%

30%

2651

27%

2016-17 2017-18 2018-19 2019-20 2020-21

TCI* (₹ Crore)

Net Worth (₹ Crore)

1295

1145

9235

8257

10569

9722

10724

956

893

423

2016-17 2017-18 2018-19 2019-20 2020-21

*Without Minority Interest

2016-17 2017-18 2018-19 2019-20 2020-21

Note: From 1st April 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers , hence the numbers of previous periods are not comparable. Net worth includes DTL.

5 YEAR TREND - FINANCIAL STATISTICS

Net Debt / EBITDA

0.92

2.99

2.49

2.61

2.18

1.98

Net Debt Equity Ratio 0.89

0.80

0.64

2016-17 2017-18 2018-19 2019-20 2020-21

Return on Capital Employed

Return on Networth

9.62%

8.23%

10.01%

9.32%

7.31%

12.62%

12.42%

11.05%

9.54%

5.57%

2016-17 2017-18 2018-19 2019-20 2020-21

Note: From 1st April 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers, hence the numbers in previous periods are not comparable.

5 YEAR TREND - FINANCIAL STATISTICS

THERMAL PLF (%)

71.4%

65.3%

33.3%

0.0% 0.0%

87.8%

62.3%

33.4%

0.0% 0.0%

74.6%

47.5%

27.3%

0.0% 0.0%

72.9%

60.1%

59.9%

40.7%

6.5%

59.9%

57.8%

44.3%

38.4% 9.8%

2016-17

2017-18

2018-19

2019-20

2020-21

T&D loss (%) Licensed Distribution

6.81%

6.31%

3.92%

3.59%

5.61%

3.43%

6.03%

4.06%

4.98%

3.43%

0.53%

0.40%

0.35%

0.31%

0.49%

2016-17

2017-18

2018-19

2019-20

2020-21

AMGEN

SUGEN

UNOSUGEN

DGEN

THERMAL

A'bad

Surat

Dahej

RENEWABLE PLF (%)

T&D loss (%) Franchised Distribution

27.3%

30.1%

29.0%

25.0%

22.2%

17.9%

17.3%

17.6%

17.1%

17.6%

24.69%

21.69%

19.16%

17.58%

14.18%

12.51%

15.13%

11.93%

44.89%

16.22%

13.50%

2016-17

2017-18

2018-19

2019-20

2020-21

2016-17

2017-18

2018-19

2019-20

2020-21

SOLAR

WIND

Bhiwandi

Agra

SMK

Note: SMK takeover from 1st March, 2020.

THANK YOU

Contact details: Rishi Shah Torrent Power Limited “Samanvay”, 600 Tapovan, Ambawadi, Ahmedabad 380015 Ph. No. (079) 26628473 Email: IR@torrentpower.com

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