TORNTPOWER

February 14, 2023 To, To, Corporate Relationship Department Listing Department BSE Limited, National Stock Exchange of India Limited 14th Floor, P. J. Towers, “Exchange Plaza”, C – 1, Block G Dalal Street, Fort, Bandra- Kurla Complex, Bandra (East), Mumbai-400001 Mumbai-400051 SCRIP CODE: 532779 SCRIP SYMBOL: TORNTPOWER Dear Sir / Madam, Re: Investor Presentation Investor Presentation on Unaudited Consolidated Financial Results for the quarter and Nine months ended December 31, 2022 is enclosed for your records. Thanking you. Yours faithfully, For Torrent Power Limited Rahul Shah Company Secretary & Compliance Officer Encl.: As above TORRENT POWER LIMITED Email: cs@torrentpower.com CIN: L31200GJ2004PLC044068 Regd. Office: ''Samanvay'', 600, Tapovan, Ambawadi, Ahmedabad 380015, Gujarat, India Phone: 079-26628300 www.torrentpower.com Torrent Power Limited Investor Presentation Q3 FY 2022-23 DISCLAIMER 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 different from the views expressed herein. Investors/shareholders/public are hence 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 the companies described herein or any of their respective affiliates, advisors or 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. PRESENTATION OUTLINE TORRENT GROUP TORRENT POWER LIMITED OVERVIEW OF OPERATIONS Q3 FY23 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 • Started in FY 18, City Gas Distribution (CGD) business now has 17 areas operational which are spread across 7 sates • 13 CGD areas won in the 9th & 10th Round of Bidding by PNGRB and 4 CGD areas acquired from incumbent players • Capex plan of ~ ₹9,000 crs over next 5 years • Crossed sales of 1 mn SCM per day TORRENT GROUP Turnover $ 3 Bn Market Cap $ 9.20 Bn Enterprise Value $ 10.77 Bn Employees 22,400+ Spreading smiles Illuminating Lives Not just healthcare… Lifecare Generating Trust. Distributing Opportunities. Turnover: $ 1.12 Bn Turnover: $ 1.88 Bn Building pan-India state-of-art city gas distribution networks Enterprise Value: $ 6.93 Bn Enterprise Value: $ 3.84 Bn in 17 GAs across 7 States Market Cap: $ 6.34 Bn Market Cap: $ 2.86 Bn Employees: 900+ Employees: 13,900+ Employees: 7,600+ TORRENT POWER LIMITED Spreading smiles Illuminating Lives Thermal Solar Wind Transmission Distribution -263 MW oper- -804.5 MW -2,730 MW -355 kms 400 kV -Licensed: - 430 MW of - Licensed ation- 1a3l8 McaWpacoitfy oper-ational state-of-art gas operational &- 35512k8m K4m00skVof Adihstmribeudtiaonbad/ - 2730 MW of gas over 5opleoractaiotnioalns cappoarctfiotylio over areas covering based power 220 KV, double Gandhinagar, double circuit plant b s ased plants -300 p M or W tfolio under- 10 - 9 l 7 o 5 ca M t W ion u s nder circuit lines to S A u hm ra e t d , ab D a a d hej / SEZ, lines to evacuate Gandhinagar, development pipeline evacuate DSuhraotl,er&a DaSheIRj & -362 MW of coal -115 MW power from gas - 362 MW of coal power from gas D SE D Z /DNH project under- based plant based plants based plant based plants - Franchised development -Franchised: distribution Barheiaws ancodvie,riAnggra & -L1 for 300 MW, Bhiwandi & SMK LOA issued Agra ASSETS AT A GLANCE TORRENT POWER LIMITED GUJARAT UTTAR PRADESH AMGEN(362MW) Sabarmati, Agra Ahmedabad KARNATAKA DGEN(1200MW) Dahej,Bharuch SUGEN & Kamrej,Surat Wind(120MW) Gulbargaand UNOSUGEN Raichur,Karnataka (1530MW) Wind(49.6MW) Jamnagar Wind(251.6MW) Kutch 03 Wind(50.9MW) Rajkot 05 Wind(50.4MW) Bhavnagar Wind (26 MW) Surendranagar Wind(70MW) AmreliandRajkot 01 06 Solar(87MW) Kamrej,Surat RAJASTHAN Solar(25 MW) Surendranagar Wind(24MW) Jaisalmer 07 Solar(51MW) Patan 02 MADHYA PRADESH 08 AhmedabadandGandhinagar Wind(36 MW) Mandsaur DADRA & NAGAR HAVELI Surat DADRAAND&DNAAMGAANR&HADVIEULI DahejSEZ 04 AND DAMAN & DIU Dholera Dadra&NagarHaveliandDaman&Diu TELANGANA MAHARASHTRA Solar(50MW) Nizamabad Wind(126MW) Osmanabad Solar(50 MW) Solapur Legends PowerGeneration Bhiwandi Gas Coal Shil,MumbraandKalwa Wind Solar Distribution Licensee Distribution Franchisee TORRENT POWER LIMITED PORTFOLIO OF ASSETS : THERMAL GENERATION Particulars Sugen Unosugen Dgen Amgen Capacity 1147.5 382.5 1200 362 (MW) (3 x 382.5) (1 x 382.5) (3 x 400) (1 x 120, 2 x 121) Plant Type Gas-based CCPP Gas-based CCPP Gas-based CCPP Coal Based Location Near Surat, Gujarat Near Surat, Gujarat Near Bharuch, Gujarat Ahmedabad, Gujarat COD August – 2009 April - 2013 November - 2014 1988 Domestic Gas & Imported Domestic Gas & Domestic & Fuel Imported LNG LNG Imported LNG Imported Coal Embedded 835 MW for Distribution 278 MW for generation for areas of Ahmedabad / Distribution areas of PPA No tie up licensed areas of Gandhinagar & Surat, and Ahmedabad / Ahmedabad / 50 MW with MP Gandhinagar & Surat Gandhinagar Contracted Storage-cum-Regasification capacity of 1 MTPA with Petronet Others LNG, Dahej Terminal for 20 years from April 2017 TORRENT POWER LIMITED PORTFOLIO OF ASSETS : RENEWABLE GENERATION Particulars Solar Wind Capacity (MW) 263 804.50 Gujarat,Maharashtra,Karnataka, Location Gujarat, Maharashtra & Telangana Rajasthan & Madhya Pradesh COD FY 12 to FY17 FY 12 to FY 19 Avg Tariff (₹/kWh) 7.46 3.96 • 352.50 MW with Company’s Licensed • 138 MW with its own Licensed Distribution business, Distribution, • 120 MW with GESCOM, Karnataka PPA • 25 MW with GUVNL • 96 MW with GUVNL Gujarat, 36 MW • 50 MW with SECI with MP and 24 MW with Rajasthan • 50 MW with Telangana State State discoms DISCOM • 126 MW with MSEDCL • 50 MW with PTC (thru SECI) FY 22 PLF 18% 27% New Projects: a. PPA signed with TPLD for 300 MW at tariff of ₹ 2.22/unit for 25 years. SCOD: Aug/Oct 2023. b. 115 MW SECI-V wind project (tariff ₹ 2.76/unit) is under implementation and expected to be commissioned by April 2023. c. Won 300 MW Wind Power Project in the Reverse Auction held by SECI and LOA was received. PPA to be signed in due time. Tariff ₹ 2.94/unit. TORRENT POWER LIMITED PORTFOLIO OF ASSETS : LICENSED DISTRIBUTION Ahmedabad/ Particulars Surat Dahej Gandhinagar Licensed Area ~ 356 sq. km. ~ 52 sq. km. ~ 17 sq. km. Peak Demand(FY22) 1,646 MW 689 MW 93 MW License validity Till 2025 Till 2028 Till 2034 Accolades / Highlights  T&D loss 3.9% during FY 22, is amongst Second Licensee at Dahej the lowest in the country; SEZ;  Substantial distribution network Minimal Distribution losses; undergrounded;  Consumers enjoy enviable power ~99.9% power reliability; availability of 99.9%, which is among the highest in the country; New Areas: The company has made an application for Grant of parallel Distribution License in various areas of Maharashtra including (i) Thane & Palghar; (ii) Pune and (iii) Nagpur. Once the license is granted, the consumers will have an option to choose any one of the licensee for power supply. TORRENT POWER LIMITED PORTFOLIO OF ASSETS : LICENSED DISTRIBUTION Dadra and Nagar Haveli and Daman Particulars Dholera SIR and Diu Power Distribution Licensed Area ~ 920 sq. km. ~603 sq. km. Peak Demand(FY22) - 1,150 MW License validity Till 2044 Till 2047 Accolades / Major project on DMIC, to be Area was formally taken over wef. 1 st Highlights developed into a global April through a newly formed manufacturing hub; company Dadra and Nagar Haveli New state-of-art network & a large and Daman and Diu Power industrial base will ensure minimal Distribution Corporation Limited T&D losses & low cost of supply; (DNHDD Power Distribution Planning & development of an Company) with 51% stake owned by efficient distribution network is Torrent Power; under progress; Investment of about ₹1,200 Crore is envisaged over next 10 years to cater to demand of about 425 MVA; TORRENT POWER LIMITED PORTFOLIO OF ASSETS : FRANCHISED DISTRIBUTION Particulars Bhiwandi Agra Shil, Mumbra, Kalwa (SMK) Licensed Area ~ 721 sq. km. ~ 221 sq. km. ~65 sq. Km. Peak Demand 566 MVA 472 MVA 132 MVA (FY22) th st th License validity 25 Jan 2027 31 March 2030 29 Feb 2040 Accolades / Country's first unique PPP  Reduction in AT&C  SMK operations taken Highlights distribution franchisee losses from 58.77% at over w.e.f 1st Mar 20 agreement with MSEDCL, the time of takeover to under a competitive now adopted as a standard 12.10% in FY 22. bidding process; model for distribution  Reliable power supply &  ~₹300 Crs of capex reforms in the country improved customer estimated in the Reduction in AT&C losses services franchised area over the from 58% at the time of agreement term, of takeover to 11.64% in FY 22. which ~₹150 Crs Reliable power supply & expected to be invested improved customer services in first 5 years;  Reported AT&C losses of 47% in FY 17 estimated to come down to 12% over 15 years OVERVIEW OF OPERATIONS – Q3 FY 2022-23 Consolidated Financial Statement Q3 22-23 Q3 21-22 Growth % YTD 22-23 YTD 21-22 Growth % FY 21-22 (₹ in Cr.) Revenue from Operations 6,443 3,767 71% 19,656 10,514 87% 14,257 Power Purchase Cost 3,776 2,211 12,958 6,279 8,520 Material Cost & Change in Inventory 767 223 1,709 391 557 Contribution 1,900 1,333 43% 4,990 3,844 30% 5,180 Other Income 84 66 286 138 235 Gen. & Admin Exp. 456 399 1,322 1,244 1,589 PBDIT 1,527 1,000 53% 3,954 2,738 44% 3,826 Finance Cost 228 157 629 477 628 Depreciation & amortization 322 334 952 994 1,334 Profit Before Exceptional Items & 977 509 92% 2,373 1,267 87% 1,864 Tax Exceptional Items -- -- -- -- 1300 Profit Before Tax 977 509 92% 2,373 1,267 87% 564 Tax Expenses 283 140 692 321 105 Profit After Tax 694 369 88% 1,681 946 78% 459 OCI / (Exp.) – net of tax 0 (0) 2 (1) 2 TCI 695 369 88% 1,683 945 78% 461 OVERVIEW OF OPERATIONS – Q3 FY23 The TCI for Q3 FY23 was higher by Rs. 326 Cr compared to Q3 FY22. The major reasons for improvement in the TCI for the quarter on y-o-y basis are:  Increase in contribution from existing licensed distribution businesses due to improved performance and contribution from the operations of Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD) which has been taken over from 1st April, 2022;  Increase in contribution from franchised distribution business due to reduction in T&D losses on account of continuous and sustained focus on Loss reduction activities;  Net gain from trading of LNG;  Increase in Finance Cost;  Increase in tax expenses. Dividend: The Board at its meeting of even date, has approved interim dividend of ₹ 22 per equity share (including ₹ 13 per equity share as a special dividend). OVERVIEW OF OPERATIONS – Q3 FY23 Q3 Thermal PLF(%)/ Net Generation(MUs) 75.9% 75.4% 552 MUs 554 MUs 30.7% 23.2% 757 20.9% MUs 16.2% 13.4% 1504 10.7% MUs 172 950 5.1% 852 264 MUs 4.4% MUs MUs MUs 0.8% 0.0% 300 MUs 36 MUs 21 MUS SUGEN UNOSUGEN DGEN GAS PLANTS AMGEN THERMAL 1147.5 MW 382.5 MW 1200 MW 2730 MW 362 MW 3092 MW Q3 21-22 Q3 22-23 OVERVIEW OF OPERATIONS – Q3 FY23 Q3 Renewable PLF (%)/ MUs Dispatched 20.4% 19.0% 16.0% 16.6% 273 MUs 270 MUs 111 51 MUs 264 MUs MUs WIND 804.5 MW SOLAR 213 MW Q3 21-22 Q3 22-23 OVERVIEW OF OPERATIONS –Q3 FY23 Q3 USO/Purchase (MUs) 2,439 1,818 1,841 870 837 996 918 184 408 407 171 182 183 Ahmedabad Surat Dahej DDDNH Bhiwandi Agra SMK Q3 22 Q3 23 T&D Loss (%) T&D Loss(%) 3.36% 3.24% 3.32% 3.28% 40.92% 34.01% 1.99% 12.27% 10.61% 11.49% 9.43% 0.45% 0.54% Ahmedabad Surat Dahej DDDNH Bhiwandi Agra SMK 9M_FY22 9M_FY23 9M_FY22 9M_FY23 INVESTMENT RATIONALE • State of the art gas • Huge growth • Need for a robust • Opportunities for based plants potential in grid to support private sector renewables; returns increase in considering the • Direct import of LNG above COE for renewables capacity at efficient cost endemic selected projects presents attractive inefficiencies of the opportunities for • Low environmental • Company’s capability public distribution private transmission footprint & large to win coming from sector players quantum of renew- strong project ables in power • Successful development, O&M • Robust regulations & system creates a & financial limited project risks privatization of Union favourable conditions capabilities Territory utilities will for sustain-able • Company’s right to spur the States to operations of • Opportunity of win : strong project follow the path unutilised capacities flexible generation to development & sell pooled RTC financial capabilities • Torrent has a strong power [Renewable + distribution platform Gas] at competitive to take advantage of cost on a long term upcoming Franchisee basis & privatisation Thermal Renewable opportunities in Transmission Distribution Generation Generation distribution sector INVESTMENT RATIONALE Excellent operational Regulated Promising records businesses growth ensuring opportunities stable returns Unmatched Strong project distribution management model skills World class Rational Value generation allocation of Creation assets capital 5 YEAR TREND - FINANCIAL STATISTICS Revenues from Operations (₹ Crore) EBIDTA (₹ Crore)/EBIDTA Margin (%) 14257 13641 13151 12173 3826 11512 3734 3607 3381 3389 30% 29% 27% 27% 26% 2017-18 2018-19 2019-20 2020-21 2022-22 2017-18 2018-19 2019-20 2020-21 2021-22 TCI* (₹ Crore) Net Worth (₹ Crore) 10724 10569 1291 10289 1145 956 893 9722 454 9235 2017-18 2018-19 2019-20 2020-21 2021-22 2017-18 2018-19 2019-20 2020-21 2021-22 *Without Minority Interest 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. TCI of FY22 is lower due to impairment provision made in the year. 5 YEAR TREND - FINANCIAL STATISTICS Net Debt / EBITDA Net Debt Equity Ratio 2.61 0.89 2.49 0.80 0.80 0.80 2.18 2.24 1.98 0.64 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 21-22 Return on Capital Employed Return on Networth 14.22% 12.62% 12.42% 10.31% 11.05% 10.01% 9.62% 9.32% 9.54% 8.23% 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 21-22 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 - OPERATIONAL STATISTICS T&D loss (%) THERMAL PLF (%) Licensed Distribution 87.8% 6.31% 6.03% 71.4% 72.9% 5.61% 76.9% 4.98% 65.3% 60.1% 57.8% 59.9% 4.06% 4.17% 62.3% 44.3% 3.59% 3.43% 3.43% 59.9% 3.38% 44.3% 41.1% 33.3% 33.4% 40.7% 38.4% 30.6% 9.8% 0.0% 0.0% 6.5% 0.40% 0.35% 0.31% 0.49% 0.45% 0.0% 0.0% 0.1% 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 21-22 AMGEN SUGEN UNOSUGEN DGEN THERMAL A'bad Surat Dahej RENEWABLE PLF (%) T&D loss (%) Franchised Distribution 30.1% 29.0% 27.3% 27.1% 44.89% 25.0% 40.48% 24.69% 19.16% 17.3% 17.6% 17.1% 17.6% 16.8% 14.18% 12.51% 16.22% 12.10% 21.69% 17.58% 15.13% 11.93% 13.50% 11.64% 17-18 18-19 19-20 20-21 21-22 16-17 17-18 18-19 19-20 20-21 21-22 SOLAR WIND Bhiwandi Agra SMK Note: (i) SMK takeover from 1st March, 2020. (ii) For fair comparison, PLF of Solar/ Wind projects is excluding 75 MW Solar and 156 MW Wind projects acquired in the month of Feb / March 2022. THANK YOU Contact details: Rishi Shah Torrent Power Limited “Samanvay”, 600 Tapovan, Ambawadi, Ahmedabad 380015 Ph. No. (079) 26628473 Email: IR@torrentpower.com