FORWARD WITH MOMENTUM Proactive Investor Conference 3 rd December - PowerPoint PPT Presentation

POWERING FORWARD WITH MOMENTUM Proactive Investor Conference – 3 rd December 2015

DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN This presentation and its contents may not be reproduced, redistributed or representation is made that any of these statements or forecasts will come passed on, directly or indirectly, to any other person or published, in whole to pass or that any forecast result will be achieved. or in part for any purpose without the consent of OPG Power Ventures Plc Neither OPG, nor any of its associates or directors, officers or advisers, (“OPG”) . Having taken all reasonable care to ensure that such is the case, provides any representation, assurance or guarantee that the occurrence of the information contained in this presentation is, to the best of the the events expressed or implied in any forward-looking statements in this knowledge and belief of the Directors of OPG, in accordance with the facts presentation will actually occur. You are cautioned not to place reliance on and contains no omission likely to affect its import. This presentation does these forward-looking statements. OPG is not under any obligation and OPG not constitute or form part of any offer or invitation to sell or issue, or any expressly disclaims any intention or obligation to update or revise any forward- solicitation of any offer to purchase or subscribe for any securities, or a looking statements, whether as a result of new information, future events or proposal to make a takeover bid in any jurisdiction. Neither this document otherwise. nor the fact of its distribution nor the making of the presentation constitutes a recommendation regarding any securities. This presentation is being No statement in this presentation is intended as a profit forecast or a profit estimate and no statement in this presentation should be interpreted to provided to you for information purposes only. mean that earnings per OPG share for the current or future financial years Certain statements, beliefs and opinions contained in this presentation, would necessarily match or exceed the historical published earnings per particularly those regarding the possible or assumed future financial or OPG share. other performance of OPG, industry growth or other trend projections are or may be forward looking statements. Forward-looking statements can be The distribution of this presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”, “goal”, possession any document containing this presentation or any part of it “target”, “aim”, “may”, “will”, “would”, “could” or “should” or, in each case, comes should inform themselves about, and observe, any such restrictions. Any failure to comply with such restrictions may constitute a violation of the their negative or other variations or comparable terminology. These forward- looking statements include all matters that are not historical facts. By their laws of any such jurisdiction. By attending the presentation and/or accepting or accessing this document you agree to be bound by the nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not foregoing limitations and conditions and will be taken to have represented, occur in the future and may be beyond OPG’s ability to control or predict. warranted and undertaken that you have read and agree to comply with the contents of this notice. Forward-looking statements are not guarantees of future performance. No 1 Confidential

INTRODUCTION 750 MW Construction completed 600 MW of Operational Capacity 800 750 600 600 400 270 190 107 113 200 30 20 0 MW Share price performance (rebased) 300 225 150 75 OPG All Share AIM 100 2 Confidential

HIGHLIGHTS: HALF YEAR RESULTS SIX MONTHS ENDED 30 SEPTEMBER 2015 (H1 FY16) Operational Highlights Additional highlights for the period • EBITDA margin of 41% up from 36% compared with • Operating capacity increased by 122% from H1 FY15 270 MW to 600 MW • Profit before tax of £15.0 million up by 46% − First 150 MW Gujarat unit started operation in Apr 2015 compared with H1 FY15 and ramped up to 85% in Oct 15 − 180 MW Chennai unit commenced operation and • EPS of 3.41 pence up by 52% compared with H1 continuing to ramp up FY15 • Gearing of 56% down from 59% at year-end; loan • Operating capacity to increase to 750 MW repayments of over £13 million made in the period imminently • Run-rate revenues growing: Oct 2015 billings − Second 150 MW Gujarat unit – transmission line connected approximately £11 million for Chennai plant (Oct. and synchronised; on track for commercial operation to PLF 70%) commence in Jan 2016 • Gujarat revenues and expenses being capitalised until Jan 2016 (as previously reported) • New 257 MW of three year captive sales agreements at Chennai plant, transforms our sales mix • Non-binding MoUs for pipeline projects * Gujarat financials not included in H1FY16; 3 Confidential

CONSISTENT OPERATIONAL PERFORMANCE Average Tariff Realisation (INR/kWh) (Chennai) Landed coal cost (Adjusted INR per tonne of 4200 kcal coal) 5.71 5.67 5.75 5.64 4,056 3,940 3,930 5.57 3,807 5.56 4,000 3,365 4,148 3,971 3,816 3,805 5.50 3,158 2,000 5.25 5.00 - FY12 FY13 FY14 FY15 H1 FY16 H1 FY13 H1 FY14 H1 FY15 H1 FY16 FY15 Indonesian Coal Indian Coal Generation (million kWh) Plant Load Factor (%) Chennai plants 100% 2,000 1,861 1,399 75% 1,500 902 843 50% 1,000 25% 293 500 0% - H1 FY12 H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY13 H1 FY14 H1 FY15 H1 FY16* FY15 * Gujarat production included in H1FY16 4 Confidential

FINANCIAL PERFORMANCE – P&L Revenues (£m) EBITDA (£m) CAGR: 34% 25 23 80 CAGR: 50% 20 57 17 60 48 47 14 15 40 10 18 5 20 5 - - H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY13 H1 FY14 H1 FY15 H1 FY16 Profit before tax (pre- exceptional) (£m) Earnings per share (£ pence) 4.0 20 3.4 CAGR: 67% CAGR 57% 15 3.0 15 2.2 10 2.0 10 1.6 8 1.0 5 3 0.4 - - H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY13 H1 FY14 H1 FY15 H1 FY16 5 Confidential

NET DEBT & GEARING Net Debt (£m) & Gearing (%) • Total debt servicing (interest+principal) - £20m 300 100% − Debt repayment of £13m 250 80% − including pre-payment of £6.6m 200 • Net Debt of £242.7m 60% − Increased in INR terms by Rs0.8bn 59% 150 56% 50% 49% 40% • Gearing at 56% 100 39% 20% 50 0 0% H1 FY13 H1 FY14 H1 FY15 FY15 H1 FY16 Net Debt (LHS) Gearing (RHS) 6 Confidential

300 MW GUJARAT: 2 ND UNIT COMMERCIAL OPERATION EXPECTED JAN 2016 2012 2015 • Overview of site Coal shed Control room Transmission line Insulated sub-station & ACC • Adapted from water cooled to air cooled • First 150 MW unit commenced commercial sales • Second greenfield site developed; built at the same in Q2 CY2015; time as Chennai IV • Multi circuit line completed by Gujarat State • New skills developed e.g. transmission lines • Plant synchronisation complete • Second 150 MW expected to be in commercial • Similar flexible boiler design as in Chennai operational by Jan 2016 7 Confidential

CHENNAI: DIVERSIFICATION IN SALES Improved revenue visibility and credit profile Sales based on duration • From 1 st October change of sales mix − 257 MW on 3 year contracts linked to regulated 19% industrial tariff − 80 MW (74 MW net) on 15 year Long term 19% 62% variable tariff (“LTVT”) with currency hedge − 77 MW on short term sales, currently to TANGEDCO Short term 15 year 3 year Diversified customer base • Diversified to over 150 customers in different sectors − Average c.1.5MW per customer 38% − Industrial customers - diversified in Textile, paper, 62% chemicals, automobile & other industries State Industrial 8 Confidential

FINANCIAL STATEMENTS Confidential 9

SUMMARY INCOME STATEMENT Year ended 31st March (£m) 1HFY16 1HFY15 2015 Notes Revenue Increased production from Chennai IV 56.57 46.53 99.97 (28.62) (27.31) (58.45) Cost of Revenue (Excluding Depreciation) Lower coal costs 27.9 19.22 41.52 Gross Profit Higher distribution costs due to Distribution, General & Administrative expenses 1 (4.7) (2.59) (8.13) increased sales to Group Captive EBITDA 23.3 16.62 33.39 (2.7) (1.59) (3.15) Depreciation Finance costs increased due to Net finance costs (5.19) (4.34) (7.97) Chennai IV Income from continuing operations (before tax non-operational 15.31 10.69 22.27 and / or exceptional items) Expenditure during the period on expansion projects (0.28) (0.17) (0.38) - (0.24) (0.24) Employee Stock Option Charge 15.03 10.28 21.65 Profit before Tax Taxation (3.02) (2.41) (4.36) Minimum Alternate Tax Profit after tax 12.01 7.87 17.29 Increase of 52% Earnings per share ( pre-exceptional basis) pence 3.41 2.24 4.91 1. Excluding Depreciation, Employee Stock Option Charge, Expenditure during the period on expansion project & including other income 10 Confidential