NLC INDIA LIMITED Formerly Neyveli Lignite Corporation Limited

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

Disclaimer This 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 not constitute 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. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect 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 nor accept 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. The value 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 to change 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. This presentation 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 continue”, “will pursue” or other words or phrases of similar import. 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 by the relevant statement. These forward looking statements are based on our current plans and expectations. Actual results may differ materially from those suggested by the forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, regulatory changes pertaining to the industries in 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 of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India 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 shall be 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 this presentation report. Further, NLCIL is under no obligation to update or keep current the information contained herein. The disclosures contained in this presentation report produced 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 part without 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 elements which 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 Mar-2017 NLC INDIA LIMITED 3

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 of open-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 Present Board of Directors comprise of 12 Directors– 6 Functional Directors, a Government Nominee and 5 Independent Directors including 2 Women Directors Strong Parentage with Government of India – equity holding 89. 32% * Based on closing share price in BSE as on 23. 03. 2017 – BSE Rs. 120. 40 Post buyback equity shares Mar-2017 NLC INDIA LIMITED 4

Rich Heritage 60+ years of glorious journey 2011 Received Navratna Status 2010 2003 Mine I A Mine I Expn TPS I Expn 1994 Listed on BSE 2000 TPS 1 Listed on NSE Incorporation 2012 Barsingsar TPS Formation of NUPPL 2005 1970 1956 Mine II Expn Barsingsar Mine 2015 TPS II Expn Wind & Solar NTPL TPS Formation of NTPL 1993 Mine II TPS II 1962 Mine I Mar-2017 1 One of the Largest Lignite Mining Companies in India 2 With Expertise in Mining & Power Generation moving towards Renewable NLC INDIA LIMITED 5

NLCIL’s Footprint Barsingsar, Rajasthan Neyveli, Tamil Nadu • Mines – 2. 1 MTPA • TPS – 250 MW * New Delhi Barsingsar * Lucknow Tirunelveli, Tamil Nadu • Wind – 45 MW *Kolkata * Bhubaneshwar Mumbai * * Hyderabad Tuticorin, Tamil Nadu Bangalore * • NTPL (JV with TANGEDCO) Coal based TPS – 1, 000 MW Neyveli Tirunelveli Tuticorin Note : Map not to scale and is presented only to provide an indication of approx locations of our operations. Mar-2017 NLC INDIA LIMITED • 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 * Regional Offices 6

NLCIL’s Core Business Mining Power Generation ü Lignite based TPSs – 3, 240 MW* ü Renewable Energy ü Solar – 10 MW ü Win d – 45 MW ü Lignite Mining – 30. 60 MTPA • Physical Performance Lignite Production - LT • Physical Performance Power Generation - MU 262 266 Mining 265 Power Generation 255 18, 789 19, 902 19, 989 19, 729 19, 182 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 246 Plant Load Factor % NLC 83% 73% 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone LT – Lakh Tons MW – Mega Watt MTPA – Million Tone Per Annum Mar-2017 2011 -12 * as on 28. 02. 2017 NLC INDIA LIMITED 83% 70% 2012 -13 All India 83% 81% 76% 65% 62% 2013 -14 2014 -15 2015 -16 Source : Central Electricity Authority & NLCIL Annual Reports 7

Performance – FY 2016 -17 Lignite Production (LT) Power Generation (MU) 180 15, 334 156 13, 977 10, 338 9 Months 111 10, 322 9 Months 6 Months FY 15 -16 FY 16 -17 110 6 Months FY 16 -17 Note : Source from NLCIL and figures representing NLCIL Standalone Mar-2017 NLC INDIA LIMITED 8

Strong In-House Capabilities Expertise in Open Cast Mining & Power Generation • Long experience and expertise in operation, maintenance and project management in opencast mining & power generation • Asset bank of specialised mining equipments for open cast mining: − German excavation technology − Bucket wheel excavators, conveyors and spreaders Mar-2017 Lignite Resources for Captive Consumption Nodal Agency for Lignite Data Base • Captive fuel source with power plants located at the pit heads of Lignite mines • Nodal Agency for Lignite database appointed by Ministry of Coal • Greater flexibility in terms of adjusting the lignite production to adjust for variations in power demands and power generation at thermal power plants • Competitive advantage in identifying and exploiting new lignite deposits in India NLC INDIA LIMITED Strong Financials • Consistent growth in turnover • Highest ratings domestic credit • Competitive tariff rates comparing other sources of power generation • Internal Financial Control Framework is in place in line with international practices 9

Strength & Opportunities Strength Opportunities • Availability of lignite and water for power generation. • Expertise in operation & maintenance of open-cast mining, power generation. • Potential area for diversification – Coal blocks, Renewable energy & Power trading • Harmonious Industrial relations. • Pioneering positions in opencast lignite mining with SME technology and lignite fired power station. • GOI’s commitment to improve the quality of life of its citizen through higher electricity consumption. • GOI aims to provide each household access to electricity, round the clock and improve the quality of life of people through 24 x 7 power supply. • Rise in the per capita consumption of power. • Huge potential for Renewable Energy • Launch of 100 smart cities mission by GOI. Mar-2017 NLC INDIA LIMITED 10

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 11

Financial Performance Total Income (Rs. in crore) 7, 194 6, 992 6, 797 553 6, 173 394 740 1, 046 5, 615 602 484 586 504 762 458 6, 247 2011 -12 2012 -13 5, 067 4, 395 2013 -14 5, 360 Power Lignite Others 5, 573 2014 -15 2015 -16 Total Income Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone Mar-2017 NLC INDIA LIMITED 12

Financial Performance EBITDA & EBIT (Rs. in crore) PBT & PAT (Rs. in crore) 2, 981 2, 592 2, 485 2, 055 2011 -12 2, 464 2, 194 2, 080 2012 -13 2013 -14 EBITDA 2, 742 2, 634 2, 143 2014 -15 2, 048 1, 984 2015 -16 1, 411 2011 -12 80. 0% 60. 0% 1, 000 28. 0% 30. 0% 600 200 470 470 503 1, 122 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 Dividend 1, 204 2012 -13 2013 -14 2014 -15 2015 -16 PAT Key Financial Ratios 73. 4%* 28. 0% 1, 580 1, 502 1, 460 PBT 1, 400 28. 0% 1, 926 EBIT Dividend Trend 28. 0% 2, 383 2, 209 Dividend % 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 OPM (%) 35. 69 35. 94 32. 78 31. 62 33. 24 40. 0% ROCE (%) 10. 22 11. 5 12. 11 12. 81 7. 50 20. 0% RONW (%) 11. 77 11. 29 10. 82 10. 69 7. 89 0. 0% Current Ratio 3. 17 3. 78 3. 44 3. 55 3. 19 Quick Ratio 2. 97 3. 46 3. 16 2. 75 Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone * Interim Dividend declared for 2016 -17 – 73. 40% Mar-2017 NLC INDIA LIMITED 13

Financial Performance Net Worth Loans Outstanding Credit Ratings (Rs. in crore) Agency 3, 164 3, 524 3, 540 3, 150 3, 819 Rating CRISIL AAA/Stable ICRA AAA/Stable CARE AAA/Stable Brickwork AAA/Stable Contribution to Exchequer (Rs. in crore) 11, 990 12, 925 13, 881 14, 772 15, 271 2011 -12 Central Government 1, 172. 89 1, 566. 77 Tamilnadu 196. 17 227. 92 270. 75 274. 22 269. 29 Rajasthan 8. 60 9. 25 9. 61 7. 26 6. 61 204. 77 237. 17 280. 36 281. 48 275. 90 1, 377. 66 1, 803. 94 1, 642. 96 2, 097. 92 1, 880. 90 2013 -14 2014 -15 2015 -16 1, 362. 60 1, 816. 44 2012 -13 2013 -14 2014 -15 2015 -16 Total Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone Mar-2017 1, 605. 00 State Government Total - State 2011 -12 2012 -13 NLC INDIA LIMITED 14

Financial Performance – FY 2016 -17 (Rs. in crore) Earnings Before Interest, Tax, Depreciation and Amortization Total Income from Operations Profit After Tax 852 1, 970 5, 831 758 1, 848 710 4, 821 1, 503 530 1, 282 3, 939 3, 564 9 Months FY 15 -16 6 Months FY 16 -17 Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone Mar-2017 NLC INDIA LIMITED 15

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 16

Lignite Reserves in India Depth wise resources In MT as on 31. 03. 2016 STATE <150 m Depths 150 -300 m Depths Tamil Nadu Puducherry Rajasthan Gujarat J&K Kerala West Bengal Total % 6, 176. 98 416. 61 1, 941. 68 707. 72 27. 55 9. 65 1. 15 9, 281. 34 20. 81 8, 752. 81 0. 00 3, 016. 88 2, 014. 33 0. 00 1. 62 13, 785. 64 30. 91 >300 m Depths 20, 750. 14 0. 00 777. 40 0. 00 21, 527. 54 48. 28 Total % 35, 679. 93 80. 02 416. 61 0. 93 5, 735. 97 12. 86 2, 722. 05 6. 10 27. 55 0. 06 9. 65 0. 02 2. 77 0. 01 44, 594. 53 100. 00 Gujarat - Others - 39. 97 Rajasthan- 2, 722. 05 5, 735. 97 Puducherry 416. 61 Tamil Nadu 35, 679. 93 Source : Geological survey of India Mar-2017 NLC INDIA LIMITED 17

Power Sector in India Power Position (MU) Per Capita Consumption (k. Whr) Installed Capacity - 3, 10, 005 MW Other Resources 9, 321 Solar - 8, 513 1, 075 776, 388 770, 994 Requirement Availability 1, 010 884 672 631 Wind - 28, 083 717 734 779 957 914 819 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 All India Plant Load Factor % Hydro - 43, 139 68 Coal, - 188, 968 62 67 64 64 62 59 Gas & Diesel 26, 201 61 58 54 Nuclear - 5, 780 April May June 58 58 July 60 61 61 62 52 August 2015 -16 September October November December 2016 -17 Source -Central Electricity Authority – Executive Summary Dec -16 Report Mar-2017 NLC INDIA LIMITED 60 18

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 19

NLCIL – Growth Plan over 10 Years – Vision 2025 Sl. No Project Existing Capacity 1 Addition Proposed Total 2 30. 60 31. 55 62. 15 0 31. 00 1 Lignite (MTPA) 2 Coal (MTPA) 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 4, 295 16, 676 20, 971 TOTAL POWER (MW) TOTAL CAPEX : Rs. 1. 28 lakh crore with a debt-equity ratio of 70: 30. 1 2 Note: Existing Capacity as on 28. 02. 2017 Note: Total Expected Capacity by 2025 – based on the Corporate Plan 2025 which is available in the Company Website Mar-2017 NLC INDIA LIMITED 20

On going / Upcoming Projects Mining Projects On Going Projects Lignite Projects MT Expansion of Mine-IA from 3 MTPA to 7 MTPA 4. 00 Bithnok Lignite Mine, Rajasthan 2. 25 Hadla Lignite Mines, Rajasthan 1. 90 Power Projects Upcoming Projects Lignite Projects On Going Projects MT Lignite based TPS Total NNTPP 1, 000* Mine. III Neyveli 11. 5 Bithnok TPS 250 Total 23. 00 Barsingsar TPS Expn 250 Total 900* Talabira II & III Coal Blocks MW Lignite based TPS NUPPL UP Renewable MT 20. 00 South Pachwara Coal Block 11. 00 Total 31. 00 Solar – TN Wind Power – TN Total 1, 980 MW 630 6 636 MW TPS-II 2 nd Expn 2, 640 Coal based TPS Odisha / NTPL Expn. 0. 40 8. 55 Coal Projects MW 11. 5 Palayamkottai & Vellar Coal based TPS Barsingsar Expansion, Rajasthan Upcoming Projects MW 3960** Renewable MW 3, 360 Solar – in various States Wind Power - TN 200 Total 3, 560 Power Assets Acquisition MW Raghunathpur – JV with DVC 1, 200 Power Assets Acquisition 1, 800 Total 3, 000 *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 (5 x 800 MW) instead of 3960 MW (6 x 660 MW) Mar-2017 NLC INDIA LIMITED 21

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 22

Corporate Social Responsibility 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. Mar-2017 NLC INDIA LIMITED 23

Green belt development Mar-2017 NLC INDIA LIMITED 24

New Initiatives – Sustainable Development Energy Conservation • Formed 14 industrial service units for adoption of energy conservation measures • To utilise alternate source of energy wherever permissible Technology Absorption • Studies on synthesis of Zeolites from Lignite Fly Ash and its efficiency in cooling water treatment taken up based on the outcome production of Zeolite tablet for water treatment. • Development of organic coating paints for use in specialized Mining equipment/De-watering pipes to enhance its life. • Reclamation of Slag Dump areas in Mine-II suitable for development of Green Cover Mar-2017 NLC INDIA LIMITED 25

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 26

Awards & Recognition • Best PSU Implementing CSR Award (2 nd Place) • Best Corporate Film in Hindi (2 nd Place) • Best PSU Implementing RTI (Special Award) • Golden Peacock Environment Award 2016 • National Award for Outstanding Industrial Relations’ (First Runner up) • SCOPE Excellence Award - Gold Trophy presented to NLCIL by Shri Pranab Mukherjee, Hon'ble President of India • Cost Excellence Award for best practices in Cost Management from The Institute of Cost Accountants of India for the third time. • The Ahmedabad and Hyderabad Chapters of Public Relation Society of India (PRSI) has honoured NLCIL with six awards in recognition of its performance in various categories • Corporate Vigilance Excellence Award 2015 -16 instituted by Institute of Public Enterprise (IPE), a well-known autonomous, non-profit organisation in Hyderabad • Golden Peacock Award for CSR – 2015 Mar-2017 NLC INDIA LIMITED 27

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary Mar-2017 NLC INDIA LIMITED 28

Glossary Term BSE CAPEX CSR DVC EBITDA Expn. FY GOI JV k. Whr LT MT MTPA MU MW Mar-2017 Description Bombay Stock Exchange Capital Expenditure Corporate Social Responsibility Damodar Valley Corporation Earnings before Interest & Tax Earnings before Interest, Tax & Depreciation and Amortisation Expansion Financial Year Government of India Joint Venture Kilowatt-hour Lakh Ton Million Ton per Annum Million Units Mega Watt Term NLCIL NNTPP NSE NTPL NUPPL OPM PAT PBT PSU ROCE RONW RTI SCOPE SME TANGEDCO TN TPS UP NLC INDIA LIMITED Description NLC India Limited New Neyveli Thermal Power Project National Stock Exchange NLC Tamilnadu Power Limited Neyveli Uttar Pradesh Power Limited Operating Profit Margin Profit after Tax Profit before Tax Public Sector Undertakings Return on Capital Employed Return on Net Worth Right to Information Standing Conference of Public Enterprises Specialised Mining Equipments Tamil Nadu Generation and Distribution Corporation Limited Tamil Nadu Thermal Power Station Uttar Pradesh 29

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