NLC INDIA LIMITED NLC INDIA LIMITED 3 Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities …

NLC INDIA LIMITED(Formerly Neyveli Lignite Corporation Limited)A “Navratna” – Government of India Enterprise

CORPORATE PRESENTATION

DisclaimerThis presentation report is for distribution only under such circumstances as may be permitted by applicable law. It is published solely for information purposes, it does notconstitute an advertisement and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in any jurisdiction. Norepresentation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except withrespect to information concerning NLCIL’s past performance, its subsidiaries and affiliates, nor is it intended to be a complete statement or summary of the future proposals ,strategies and projections referred to in the report. NLCIL does not undertake that investors will obtain profits, nor will it share with investors any investment profits noraccept any liability for any investment losses. Investments involve risks and investors should exercise prudence in making their investment decisions.

The report should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not necessarily a guide to future performance. Thevalue of any investment or income may go down as well as up and you may not get back the full amount invested. Any opinions expressed in this report are subject tochange without notice and may differ or be contrary to opinions expressed by other business groups of NLCIL as a result of using different assumptions and criteria. Thispresentation report may contain certain “forward-looking statements”. These forward-looking statements generally can be identified by words or phrases such as “aim”,“anticipate”, “believe”, “expect”, “estimate”, “intend”, “objective”, “plan”, “project”, “shall”, “will”, “will continue”, “will pursue” or other words or phrases of similarimport. Similarly, statements that describe our strategies, objectives, plans or goals are also forward-looking statements.

All forward-looking statements are subject to risks, uncertainties and assumptions about us that could cause actual results to differ materially from those contemplated bythe relevant statement. These forward looking statements are based on our current plans and expectations. Actual results may differ materially from those suggested by theforward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, regulatory changes pertaining to the industriesin which we have our businesses and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion, technological changes,our exposure to market risks, general economic and political conditions which have an impact on our business activities or investments, the monetary and fiscal policies ofIndia, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets inIndia and globally, changes in Indian laws, regulations and taxes and changes in competition in our industry etc.

NLCIL reserves the right to alter, modify or otherwise change the presentation without notifying any person of such changes or revision. Neither the author or NLCIL shallbe liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from thispresentation report. Further, NLCIL is under no obligation to update or keep current the information contained herein. The disclosures contained in this presentation reportproduced by NLCIL shall be governed by and construed in accordance with laws of India. NLCIL specifically prohibits the redistribution of this material in whole or in partwithout the written permission of NLCIL and NLCIL accepts no liability whatsoever for the actions of third parties in this respect. Images may depict objects or elementswhich are protected by third party copyright, trademarks and other intellectual property rights. All rights reserved.

Mar-2017 NLC INDIA LIMITED 2


Contents

Company Overview & Performance Highlights

Financial Performance

Industry Opportunities

Future Growth

Sustainability Measures

Awards & Recognition

Glossary

NLC India Ltd| Introduction


A ‘Navratna’ Company

Rich Heritage with Over 6 Decades of Glorious Existence

Core Business – Mining & Power Generation with Expertise in operation & maintenance ofopen-cast mining, power generation

Robust Financial Performance – FY 15-16 Total Income - Rs. 7,194 crore;PAT – Rs. 1,204 crore; Market Capitalization * - Rs. 18,403.98 crore

Conferred with AAA rating – Highest domestic credit rating

Strong Parentage with Government of India – equity holding 89.32%

Present Board of Directors comprise of 12 Directors– 6 Functional Directors, a Government Nominee and 5 Independent Directors including 2 Women Directors

* Based on closing share price in BSE as on 23.03.2017 – BSE Rs. 120.40 Post buyback equity shares

Rich Heritage


years of glorious journey

1956Incorporation

1962Mine I

1970TPS 1

2003Mine I A

Mine I ExpnTPS I Expn

2005Formation of

NTPL

2010Mine II Expn

Barsingsar Mine

2015TPS II Expn

Wind & SolarNTPL TPS

1994Listed on BSE

1993Mine IITPS II

2000Listed on NSE

1 One of the Largest Lignite Mining Companies in India

2With Expertise in Mining & Power Generation moving towards Renewable

2011Received Navratna

Status

2012Barsingsar TPS

Formation of NUPPL

NLCIL’s Footprint


• Corporate Office

• Lignite Mines

• Mine I – 10.5 MTPA

• Mine IA – 3.0 MTPA

• Mine II – 15.0 MTPA

• Power

• TPS I – 600 MW

• TPS I Expn – 420 MW

• TPS II – 1,470 MW

• TPS II Expn– 500 MW

• Renewable Energy

• Solar – 10 MW

Neyveli, Tamil Nadu• Mines – 2.1 MTPA

• TPS – 250 MW

Barsingsar, Rajasthan

Note : Map not to scale and is presented only to provide an indication of approx locations of our operations.

•Wind – 45 MW

Tirunelveli, Tamil Nadu

•NTPL (JV with TANGEDCO) -Coal based TPS – 1,000 MW

Tuticorin, Tamil Nadu

NLCIL’s Core Business


Power Generation

Mining

Mining Power Generation

✓ Lignite Mining – 30.60 MTPA ✓ Lignite based TPSs – 3,240 MW*✓ Renewable Energy

✓ Solar – 10 MW✓ Win d – 45 MW• Physical Performance

• Physical Performance

18,789

19,902 19,989 19,72919,182

2011-12 2012-13 2013-14 2014-15 2015-16

Power Generation - MU

83% 83% 83% 81%76%73% 70%

66% 65% 62%

2011-12 2012-13 2013-14 2014-15 2015-16

Plant Load Factor %

NLC All India

246

262266 265

255

2011-12 2012-13 2013-14 2014-15 2015-16

Lignite Production - LT

Note : Source from NLCIL Annual Reports and figures representing NLCIL StandaloneLT – Lakh Tons MW – Mega Watt MTPA – Million Tone Per Annum Source : Central Electricity Authority & NLCIL Annual Reports* as on 28.02.2017

Performance – FY 2016-17


13,977

10,338

15,334

10,322

9 Months 6 Months

FY 15-16 FY 16-17

Power Generation (MU)

156

111

180

110

9 Months 6 Months

FY 15-16 FY 16-17

Lignite Production (LT)

Note : Source from NLCIL and figures representing NLCIL Standalone

Strong In-House Capabilities


Expertise in Open Cast Mining &

Power Generation

Lignite Resources for Captive

Consumption

Nodal Agency for Lignite Data Base

Strong Financials

• Long experience and expertisein operation, maintenance andproject management in open-cast mining & powergeneration

• Asset bank of specialisedmining equipments for opencast mining:− German excavation

technology− Bucket wheel excavators,

conveyors and spreaders

• Captive fuel source withpower plants located at the pitheads of Lignite mines

• Greater flexibility in terms ofadjusting the ligniteproduction to adjust forvariations in power demandsand power generation atthermal power plants

• Nodal Agency for Lignitedatabase appointed byMinistry of Coal

• Competitive advantage inidentifying and exploitingnew lignite deposits in India

• Consistent growth in turnover

• Highest domestic creditratings

• Competitive tariff ratescomparing other sources ofpower generation

• Internal Financial ControlFramework is in place in linewith international practices

Strength & Opportunities


• Availability of lignite andwater for power generation.

• Expertise in operation &maintenance of open-castmining, power generation.

• Potential area fordiversification – Coal blocks,Renewable energy & Powertrading

• Harmonious Industrialrelations.

• Pioneering positions in open-cast lignite mining with SMEtechnology and lignite firedpower station.

• GOI’s commitment to improvethe quality of life of its citizenthrough higher electricityconsumption.

• GOI aims to provide eachhousehold access to electricity,round the clock and improve thequality of life of people through24x7 power supply.

• Rise in the per capitaconsumption of power.

• Huge potential for RenewableEnergy

• Launch of 100 smart citiesmission by GOI.

Strength Opportunities


Contents




Future Growth



Glossary



4,395

5,067 5,360

5,573

6,247 458

504

586 484

394

762

602

1,046 740

553

2011-12 2012-13 2013-14 2014-15 2015-16

Total Income (Rs. in crore)

Power Lignite Others

5,615

6,173

6,9926,797

7,194

Total Income

Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone



2,485 2,592

2,9812,634 2,742

2,055 2,080

2,4642,194 2,143

2011-12 2012-13 2013-14 2014-15 2015-16

EBITDA & EBIT (Rs. in crore)

EBITDA EBIT

1,984 2,0482,209

2,383

1,926

1,411 1,460 1,502 1,580

1,204

2011-12 2012-13 2013-14 2014-15 2015-16

PBT & PAT (Rs. in crore)

PBT PAT

470 470 470 470 503 1,122

28.0% 28.0% 28.0% 28.0% 30.0%

73.4%*

0.0%

20.0%

40.0%

60.0%

80.0%

200

600

1,000

1,400

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Dividend Trend

Dividend Dividend %

2011-12 2012-13 2013-14 2014-15 2015-16

OPM (%) 35.69 35.94 32.78 31.62 33.24

ROCE (%) 10.22 11.5 12.11 12.81 7.50

RONW (%) 11.77 11.29 10.82 10.69 7.89

Current Ratio 3.17 3.78 3.44 3.55 3.19

Quick Ratio 2.97 3.46 3.16 3.16 2.75

Key Financial Ratios

Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone* Interim Dividend declared for 2016-17 – 73.40%



(Rs . in crore)

Contribution to Exchequer (Rs. in crore)

Agency Rating

CRISIL AAA/Stable

ICRA AAA/Stable

CARE AAA/Stable

Brickwork AAA/Stable

2011-12 2012-13 2013-14 2014-15 2015-16

Central Government 1,172.89 1,566.77 1,362.60 1,816.44 1,605.00

State Government

Tamilnadu 196.17 227.92 270.75 274.22 269.29

Rajasthan 8.60 9.25 9.61 7.26 6.61

Total - State 204.77 237.17 280.36 281.48 275.90

Total 1,377.66 1,803.94 1,642.96 2,097.92 1,880.90

Credit Ratings

11,99012,925

13,88114,772 15,271

3,8193,524

3,150

3,1643,540

2011-12 2012-13 2013-14 2014-15 2015-16

Net Worth Loans Outstanding


Financial Performance – FY 2016-17


Total Income from OperationsEarnings Before Interest, Tax, Depreciation

and AmortizationProfit After Tax

4,821

3,564

5,831

3,939

9 Months 6 Months

FY 15-16 FY 16-17

1,848

1,503

1,970

1,282

9 Months 6 Months

FY 15-16 FY 16-17

758

710

852

530

9 Months 6 Months

FY 15-16 FY 16-17

(Rs. in crore)



Contents




Future Growth



Glossary

Lignite Reserves in India


Depth wise resources In MT as on 31.03.2016

STATE <150 m Depths 150-300 m Depths>300 m Depths

Total %

Tamil Nadu 6,176.98 8,752.81 20,750.14 35,679.93 80.02

Puducherry 416.61 0.00 0.00 416.61 0.93

Rajasthan 1,941.68 3,016.88 777.40 5,735.97 12.86

Gujarat 707.72 2,014.33 0.00 2,722.05 6.10

J&K 27.55 0.00 0.00 27.55 0.06

Kerala 9.65 0.00 0.00 9.65 0.02

West Bengal 1.15 1.62 0.00 2.77 0.01

Total 9,281.34 13,785.64 21,527.54 44,594.53 100.00

% 20.81 30.91 48.28 100.00

Source : Geological survey of India

Tamil Nadu -35,679.93

Puducherry-416.61

Rajasthan-5,735.97

Gujarat - 2,722.05 Others - 39.97

Power Sector in India

Coal, - 188,968

Gas & Diesel -26,201

Nuclear -5,780

Hydro - 43,139

Wind - 28,083

Solar - 8,513

Other Resources -

9,321

Installed Capacity - 3,10,005 MW


6264

5958 58

64

67

61 62

68

6261

5452

5860 61 60

April May June July August September October November December

All India Plant Load Factor %

2015-16 2016-17

Source -Central Electricity Authority – Executive Summary Dec -16 Report

631672

717 734779

819

884914

9571,010

1,075

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Per Capita Consumption (kWhr)

776,388 770,994

Requirement Availability

Power Position (MU)


Contents




Future Growth



Glossary

Sl. No

ProjectExisting

Capacity1

Addition Proposed

Total2

1 Lignite (MTPA) 30.60 31.55 62.15

2 Coal (MTPA) 0 31.00 31.00

3 Power - Lignite Based (MW) 3,240 3,540 6,780

4 Power - Coal Based (MW) 1,000 5,940 6,940

5 Power - Renewable (MW) 55 4,196 4,251

6 Acquisition of Power Assets (MW) 0 3,000 3,000

TOTAL POWER (MW) 4,295 16,676 20,971

TOTAL CAPEX : Rs.1.28 lakh crore with a debt-equity ratio of 70:30.

NLCIL – Growth Plan over 10 Years – Vision 2025


1 Note: Existing Capacity as on 28.02.20172 Note: Total Expected Capacity by 2025 – based on the Corporate Plan 2025 which is available in the Company Website

On going / Upcoming Projects


Lignite Projects MT

Expansion of Mine-IA from 3MTPA to 7 MTPA

4.00

Bithnok Lignite Mine, Rajasthan 2.25

Hadla Lignite Mines, Rajasthan 1.90

Barsingsar Expansion, Rajasthan 0.40

Total 8.55

Coal Projects MT

Talabira II & III Coal Blocks 20.00

South Pachwara Coal Block 11.00

Total 31.00

Mining Projects Power Projects

Lignite based TPS MW

NNTPP 1,000*

Bithnok TPS 250

Barsingsar TPS Expn 250

Total 900*

Coal based TPS MW

NUPPL UP 1,980

Renewable MW

Solar – TN 630

Wind Power – TN 6

Total 636

Lignite Projects MT

Palayamkottai & Vellar 11.5

MineIII Neyveli 11.5

Total 23.00

On Going Projects Upcoming Projects

Lignite based TPS MW

TPS-II 2nd Expn 2,640

Coal based TPS MW

Odisha / NTPL Expn. 3960**

Renewable MW

Solar – in various States 3,360

Wind Power - TN 200

Total 3,560

On Going Projects Upcoming Projects

*Note: NNTPS to replace existing TPS I of 600 MW accordingly 400 MW has been considered for arriving the total.** Note : likely to be upgraded as 4000 MW (5x800 MW) instead of 3960 MW (6x660 MW)

Power Assets Acquisition MW

Raghunathpur – JV with DVC

1,200

Power Assets Acquisition 1,800

Total 3,000


Contents




Future Growth



Glossary

Amount Spent on CSR activities

2012-13 : Rs. 14.26 crore

2013-14 : Rs. 26.30 crore

2014-15 : Rs. 47.49 crore

2015-16 : Rs. 81.93 crore

More than 1400 Toilets constructed

(with an expenditure of Rs. 39 crore)

under Swachh Vidyalaya Mission of

Government of India in Schools of

Two States of INDIA.


Corporate Social Responsibility

Green belt development



New Initiatives – Sustainable Development

• Formed 14 industrial service units for adoption of energy conservation measures

• To utilise alternate source of energy wherever permissible

Energy Conservation

• Studies on synthesis of Zeolites from Lignite Fly Ash and its efficiency incooling water treatment taken up based on the outcome production of Zeolitetablet for water treatment.

• Development of organic coating paints for use in specialized Miningequipment/De-watering pipes to enhance its life.

• Reclamation of Slag Dump areas in Mine-II suitable for development of GreenCover

Technology Absorption


Contents




Future Growth



Glossary

Awards & Recognition• Best PSU Implementing CSR Award (2nd Place)

• Best Corporate Film in Hindi (2nd Place)

• Best PSU Implementing RTI (Special Award)

• Golden Peacock Environment Award 2016

• National Award for Outstanding Industrial Relations’ (FirstRunner up)

• SCOPE Excellence Award - Gold Trophy presented to NLCILby Shri Pranab Mukherjee, Hon'ble President of India

• Cost Excellence Award for best practices in CostManagement from The Institute of Cost Accountants ofIndia for the third time.

• The Ahmedabad and Hyderabad Chapters of Public RelationSociety of India (PRSI) has honoured NLCIL with six awardsin recognition of its performance in various categories

• Corporate Vigilance Excellence Award 2015-16 instituted byInstitute of Public Enterprise (IPE), a well-knownautonomous, non-profit organisation in Hyderabad

• Golden Peacock Award for CSR – 2015



Contents




Future Growth



Glossary

Glossary


Term Description

NLCIL NLC India Limited

NNTPP New Neyveli Thermal Power Project

NSE National Stock Exchange

NTPL NLC Tamilnadu Power Limited

NUPPL Neyveli Uttar Pradesh Power Limited

OPM Operating Profit Margin

PAT Profit after Tax

PBT Profit before Tax

PSU Public Sector Undertakings

ROCE Return on Capital Employed

RONW Return on Net Worth

RTI Right to Information

SCOPE Standing Conference of Public Enterprises

SME Specialised Mining Equipments

TANGEDCO Tamil Nadu Generation and Distribution Corporation Limited

TN Tamil Nadu

TPS Thermal Power Station

UP Uttar Pradesh

Term Description

BSE Bombay Stock Exchange

CAPEX Capital Expenditure

CSR Corporate Social Responsibility

DVC Damodar Valley Corporation

EBIT Earnings before Interest & Tax

EBITDA Earnings before Interest, Tax & Depreciation and Amortisation

Expn. Expansion

FY Financial Year

GOI Government of India

JV Joint Venture

kWhr Kilowatt-hour

LT Lakh Ton

MT Million Ton

MTPA Million Ton per Annum

MU Million Units

MW Mega Watt

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For any queries / further information on the presentation / about thecompany, please mail us at [email protected]

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NLC INDIA LIMITED NLC INDIA LIMITED 3 Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities …