CESC Limited

Powering India since 1899 October 2010 www.cesc.co.in

RPG Enterprises
8 Business Sectors, 20+ companies, 40,000+ employees, 4,00,000 + shareholders

Respond, Perform, Grow

RPG Enterprises Business Sectors

Business Sectors Companies
Entertain ment 1% Speciality 6%

KEC International CESC Noida Power Co.*

Infrastru cture 27%

Infrastructure Power Tyre Retail Carbon Black IT Speciality Entertainment

IT 6% Carbon Black 9% Retail 11%

Integrated Coal Mining * CEAT CEAT SriLanka * Spencer`s Retail* Spencer`s Travel* Phillips Carbon Black Zensar Technologies Harrisons Malayalam Raychem RPG* RPG Life Sciences Saregama India
* unlisted
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Revenue FY 2009-10 `160 bn

Power 22%

Tyre 21%

RPG Enterprises - Financials

(` bn )

Gross Revenues (FY`10) CESC KEC International CEAT Phillips Carbon Black Harrisons Malayalam Zensar Technologies RPG Life Sciences Saregama India
market cap as on 30th Sep10

EBIDTA Net Profit Current (FY`10) (FY`10) Market cap 9.63 4.77 3.45 2.04 0.24 1.78 0.32 0.13 4.33 1.90 1.65 1.23 0.06 1.27 0.11 0.01 48.06 25.61 6.04 7.26 1.68 7.11 1.47 1.88

Promoter Institutional Holding Holding 52% 42% 48% 46% 50% 52% 51% 53% 37% 43% 31% 25% 11% 24% 16% 34%

33.55 39.53 30.33 12.90 2.87 9.53 1.64 0.99

POWER BUSINESS

CESC- An Overview
110 year old fully Integrated Energy Utility: Coal Mining - Generation Distribution . Other business through subsidiaries include Retail and Real Estate - 4 thermal plants - 1225 MW, BBGS-III 250 MW commissioned in Q4 FY10 - PLF 93%, T&D loss less than 13.3% , Collection efficiency 99.5%

Capacity

Achievements

Budge Budge plant received outstanding performance award from the Prime Minister. It is First Thermal Power Plant in the world registered with UNFCCC for Carbon Credit Peak System Demand 1600 MW

Demand Area

567 sq.km area, 2.3 mn consumers, 16500 ckt km T&D network

Stock Listed on

BSE (Code 500084); NSE (CESC)

CESC-Generating Stations
Budge Budge (BBGS) - 3 x 250 MW
(Phase I- 500 MW in 1999, Phase II- 250 MW in 2010)

New Cossipore (NCGS) 100 MW - 1950

Southern (SGS) 135 MW - 1991

Titagarh (TGS) 240 MW - 1984

BBGS (1 & 2), SGS, TGS have a combined PLF of 93% in FY10
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Operating performance:
7800 7600 7400 7200 7000 6800 6600 6400 6200 6000 5800

Sales (MU)
*7206 *6948

*7593

*6424

FY07

FY08

FY09

FY10

* Excluding Export
24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 22.8%

PLF%(excluding peaking Station)

86 94 94 97 97 93

T & D Loss(%)
16.3% 15.5% 14.7% 13.9%

120 100 80 80

13.3%

13.3%

60 40 20 0

FY01

FY05

FY06

FY07

FY08

FY09

FY10

FY04

FY05

FY06

FY07

FY08

FY09

FY10

National average PLF is 70%

* BBGS Unit 3 commissioned in FY10 8

Tariff & Profitability

Tariff (` / unit) `
4.9 4.7 4.5 4.3 4.1 3.9 3.7 3.5 FY04 FY05 FY06 FY07 FY08 Feb'08 FY09 Nov'09 Apr'10 4.15 4.03 3.81 3.86 3.74 3.76 3.91 2.00 1.00 0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 0.89 4.57 5.00 4.03 4.00 3.00 1.60 1.97 3.41 4.73 6.00 4.65

PBT (` Bn) `
5.22

Debt / Equity Ratio

2.50 2.11 2.00 1.50 1.00 0.50 0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 1.42 1.06 0.75 0.55 0.65 0.70 40 35 30 25 20 15 10 5 0

EPS (`) `
36 30* 20 12 23 33 35

FY04

FY05

FY06

FY07

FY08

FY09

FY10

*Issue of 31.06 mn equity shares in the scheme of amalgamation with Spencer's retail and 9.56 mn shares via QIP in FY08

Q1 FY11 Performance
Generation (MU)
2443
2500 2000 1500 1000 500 0 Q1 FY10 Q1 FY11

Revenue (`Bn) `
10.82
12 10 8 6 4 2 0 Q1 FY10 Q1 FY11

1979 8.09

EBITDA (`Bn) `
2.71
3 2.5 2 1.5 1 0.5 0 Q1 FY10 Q1 FY11

PAT (`Bn ) `
1.1 *
1.1 1.09 1.08 1.07 1.06 1.05 1.04 1.03 1.02

2.18

1.05

Q1 FY10

Q1 FY11

* FY 10 -11 tariff announced in Aug10 with retrospective effect

GROWTH STRATEGY

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Projects
CATEGORY A : Current Chandrapur Haldia Phase 1 Total CATEGORY B : Orissa Balagarh

Year of Commissioning

Capacity (MW)
1225 600 600 2425

Status

Coal Strategy

2013 2014

Operational Under Execution Financial Closure Done

Linkage + Captive Linkage Linkage

2015 2016

1320 1320

Jharkhand Total CATEGORY C : 1) 3rd unit on Haldia land 2) Orissa Phase 2 3) Bihar Pirpainty Total Grand Total (A+B+C)

2016

600 3240

Awaiting Long Term linkage (have 90% score) Land acquired. Environment TOR Awaiting linkage (have 70% score). received Imported coal will support 50% ie 660 MW Environment TOR received. Land Captive Mining (Exploration on) to be acquired.

All else done except coal

2015-2018

300 1320 1000 2620 8285

Land in hand Land in hand Land acquisition started

Fuel to be arranged

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Summary of opportunities in Thermal Generation

Category A B C Thermal Generation 2425 MW 3240 MW 2620 MW 8285 MW

In addition Hydel (300 MW) Solar (25 MW) being pursued under Central/State Govt. Schemes. Solar, at this stage, to establish Proof of Concept

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Overseas Coal Assets

1) Resource Generation Ltd (Australia) Have control over 600 MT to 1 Bn Tonne of good quality bituminous coal in South Africa (Boikarabelo Mines in S.A) RPG has just acquired 10% holding (largest shareholder) Mining expected to start by 2013 Index linked favourable pricing formula Access to 37 MT over 20 years 1MT for first 3 years, 2 MT for 17 years

2) Indonesia Discussions at final stages for 10 MT over 7 yr period and 40% stake in the company Adjacent 20MT Greenfield a possibility will give critical mass

3 ) Other Overseas Coal Assets also being pursued.

Expected that between Coal Linkage & (1), (2) and (3) above, all requirement of A, B & C categories will be met

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Key Growth Areas

1. 2. 3. 4.
5.

Coal based capacity expansion to meet growth in Kolkata circle

PAN India investment in merchant power plants (coal & gas)

Entry into Hydel and other Renewables

Private participation in Distribution through Franchise

Foray into infrastructure space

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Generation
Organic & acquisition route for capacity expansion eg. Haldia vs Chandrapur Future expansion will include alternate fuel like Gas & Nuclear. MOU with GAIL for gas in place Proof of concept investments in Solar (PV & Thermal) under way Hydel through both MOU/Bidding route as well project acquisition route being pursued Aggressively looking to acquire coal assets Acquired 600 MW thermal project in Maharashtra
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Generation Project Status Category A & B

Category A Project Chandrapur, Maharashtra 600 300x2 Sub-critical Thermal 2013 29 50:50 Haldia Phase 1, West Bengal 600 300x2 Sub-critical Thermal 2014 33 75:25 Dhenkanal, Orissa 1320 660x2 Supercritical Thermal 2015 Category B Dumka, Jharkhand 600 300x2 Sub-critical Thermal 2016 Balagarh West Bengal 1320 660 x 2 Supercritical Thermal 2016 68 Not yet decided

Capacity (MW) Technology Type Commissioning (Year) ` Cost (`bn) PPA : Merchant

65 32 25% to Orissa at 25% to Jharkhand regulated tariff. Balance at regulated tariff. not yet decided Balance not yet decided

Project Status BTG/EPC Fuel Land Water clearance Environment Order placed Linkage received Acquired Received Final clearance received ICB in progress Linkage received Acquired Received Final clearance received Awaiting Linkage Acquired Received TOR recvd Captive mine allotted In process Received TOR recvd Awaiting Linkage Acquired In process TOR recvd

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Distribution - Growth Opportunities

Existing Business Routine Capital Expenditure `5 bn per year for Kolkata business

220/132 kv Network Augmentation capex - `4.5 bn by 2011 Connectivity to National Grid to facilitate export of power Downstream transmission of power to different load centres on commissioning of Haldia Phase I New Licensing

Pursuing franchise opportunity in Bihar

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REAL ESTATE BUSINESS

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Real Estate
Being a 110 year old utility CESC has a large unexploited land bank Utilizing idle company assets for additional income generation and Capital appreciation Floated 100% subsidiary CESC Properties Ltd to develop real estate projects.

Development of premium shopping mall

3 acre of land at Central Kolkata International standard premium shopping mall planned 4 lac sq.ft retail area, 900+ car parking RTKL appointed as architects Turnkey order has been placed on L & T Work has started, mall expected to start operations in 2012-13

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RETAIL BUSINESS

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Snapshot Year of Establishment Trading Area(000 sqft) No. of Stores in operation Annual Turnover (` Bn) ` Total Employees 1996 876 208 9.06 4,500

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Spencer`s Retail
`9 bn food-first, multi-format retailer Indias first retail chain introducing Indian consumers to the concept of organized retail Formats Hyper & Supermarkets, Convenience Stores 60 million footfalls per annum Strong Brand traction with target customer Stock approximately 30000 SKUs in a typical hyper store Extensive private label program across food, fashion, home and entertainment - 20 brands and more than 6000 SKUs
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Spencers Strategy
Brand traction with Sec A, A+ solid, expand reach to Sec B with embedded value communication To incorporate the value message tag line which has changed from taste the world to MAKES FINE LIVING affordable

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Macro Environment
All retailers grew aggressively in FY 08-09 taking store rents and salaries to unsustainable levels Industry correction in FY 09-10
Meltdown rentals and salaries needed market correction another learning : market for organised retail heterogeneous

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Chronology
FY 08-09 : Rapid growth to establish Pan India presence FY 09-10 : Closures and consolidation focus on Category A markets FY 10-11 : Consolidation continues, good improvement. TA static FY 11-13 : Rapid growth to more than double current retail space by March 2013

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Spencers Footprint Sep 2010

Regions States WB TOTAL Maharashtra West Gujarat TOTAL East UP NCR North Punjab TOTAL Kerala South 1 T.N Trichy TOTAL Bangalore South 2 Coastal A.P Hyderabad TOTAL TOTAL TA (000) 131 131 89 24 113 70 92 5 167 24 95 52 171 88 88 118 294 876k Hyper s >15 k 4 4 2 1 3 2 2 0 4 0 0 1 1 2 4 1 7 19 Supers 3k -15k 1 1 0 0 0 0 1 0 1 1 0 1 2 3 0 3 6 10 Dailies <3k 12 12 12 0 12 13 6 0 19 8 44 13 65 15 11 26 52 160 SAS 0 0 3 0 3 0 12 4 16 0 0 0 0 0 0 0 0 19 TOTAL 17 17 17 1 18 15 21 4 40 9 44 15 68 20 15 30 65 208

East

TA Hypers
TA Supers

452 K sft 57 K sft

TA Small stores 346 K sft SAS 21 K sft

BHPC
Ecko Ladybird Fish & Meat au bon pain

14 stores 2 stores 2 stores 2 stores 6 cafes

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Hyper & Super footprint Sep10

Hypers Supers
19 Hypers 452K sqft 10 Supers 57K sqft
Lucknow Gorakhpur Durgapur NCR Hypers : Ghaziabad, Gurgaon Super : Faridabad

Vadodara Aurangabad Mumbai (Malad) Warangal Hyderabad

Kolkata Hypers : South City, Mani Square, Rash Behari Super : Avisar

Vizag Kakinada Rajamundhry Vijayawada, Guntur Bangalore - Hyper : Koramangala, Sarjapur; Supers: MG Rd, Mosque Rd, JP Brigade

Trichy Manacaud

Guntur Hyper launched on 2nd July10

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Current segment-wise sales

Bakery & Food Services

Fish & Meat

Apparel

E&E HWP

F&V FMCG Staples

The focus is on increasing sales from apparel and E&E segment.

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Spencers Strategy
Cost Reduction / Loss Reduction
Savings of `100 mn per month (from 2nd half of 08/09) achieved through a combination of: a) Closure of unprofitable stores b) Rent re-negotiations c) Back-end consolidation with GST coming in 2011 further consolidation possible d) Organisation de-layering e) Operational efficiencies Illustration: a) Removal / de-layering of zonal structure b) DC consolidation, including shifting of DC to Hyper ( eg: Ghaziabad)
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Financials
Average Per Month figures

TA (Mn sft) Revenue /sft RGM % RGM (Rs /sft ) Rent (Rs /sft ) Opex (Rs /sft ) Store EBITDA (Rs /sft ) Store EBITDA (Rs Mn) RODC Cost (Rs Mn) Corp Cost (Rs Mn) Advt (Rs Mn) Corp EBITDA(Rs Mn)
all figures in Avg

1st Half 2nd Half Apr to Sep '09 Oct to Mar '10 Apr to Jun '10 July + Aug '10 0.90 0.90 0.90 0.90 758 836 898 1011 18.1% 18.4% 19.3% 18.7% 137 154 173 189 55 57 56 57 108 112 112 111 (26) (14) 6 21 (25) (13) 5 19 73 63 59 56 43 47 49 54 14 18 18 24 (156) (141) (121) (115)

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Same Store Growth

18.0% 14.0% 10.5% 10.0% 6.0% 2.0% 1.4% -2.0% -6.0% -10.0% Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 -2.4% -6.3% -1.2% 9.0% 7.4% 14.9% 11.1% 10.7% 14.8% 10.3%

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Private Label FMCG / Food FMCG / Non- Food

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Private Label General Merchandise Apparel

Formal Wear Casual Wear Ethnic Wear

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Pvt Label Contribution

50.0% 44.5% 45.0% 43.2% 43.2% 43.7% 44.3% 44.0% 44.0% 45.0% 43.0% 40.0% 34.2% 30.3% 30.0% 25.1% 25.0% 24.7% 20.0% 16.2% 10.7% 11.3% Gn Merchandise 7.0% 2.5% 2.4% 2.3% 2.6% 2.5% 3.1% 3.7% 3.5% 4.5% 13.0% 13.3% 13.9% 16.2% 25.0% 29.9% 30.3% 35.0% 50.0%

Staples
40.0% 35.0% 33.2%

APPAREL
20.0% 14.7% 15.0% 10.0% 5.0% 0.0% 10.8%

FMCG
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Mar-11 Mar-12

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TA GROWTH (Mn - Sq ft)

Hypers Super Mkts/Convenience Sts Total

Aug-10 Mar-11 Mar-12 Mar-13 0.45 0.6 0.9 1.5 0.45 0.9 0.5 1.1 0.6 1.5 0.9 2.4

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WORKING CAPITAL TREND

Stock Creditors Net Working Capital (Rs. Mn) (Rs. Mn) (Rs. Mn) Mar'09 Mar'10 Aug'10 Mar'09 Mar'10 Aug'10 Mar'09 Mar'10 Aug'10 150 140 147 100 140 156 50 0 -9 440 360 338 300 300 303 140 60 35 170 150 96 40 50 45 130 100 51 130 90 81 40 40 46 90 50 35 170 170 170 70 100 122 100 70 48 30 30 28 20 60 60 10 -30 -32 1090 940 860 570 690 732 520 250 128 60 47 34 30 35 29
30 30

Category Staples FMCG Apparel E&E HWP & Fur Others Total No of days Cover

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5 5

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Specialty Brands - Strategy

Beverly Hills Polo Club (BHPC) affordable fashion 15 stores launched till date 1 new store opened in West UP in Sep10 Ladybird kids apparel brand 2 stores launched in NCR in Sep10 Mark Ecko Fashion apparel brand 2 stores launched in Delhi since July10 Except for Mark Ecko, other brands will also be sold from Spencers Hyper au bon pain (ABP) bakery caf chain Operates 6 Cafes in Bangalore covering a Trading Area of 6985 sft. All stores are close to Break even. State of Art factory of 16500 sft capable of servicing 50 stores Proof of Concept tested, looking forward to aggressive expansion
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New Initiatives - BHPC

Nationally scalable model. Potential for 300+ stores of 1,000 sft size. In affordable luxury fashion space. Proof of concept established. Expansion line with milestone achievement. Majority of stores are EBITDA positive within 3 months. Franchisee model to be launched by Nov-10. B2B to be launched by March-11.
Average PM Mar-10 No of stores Rev/ Sq ft GM% Store Ebidta 5 1050 43% 4.50% Aug-10 14 1100 49% 6.50% Mar-11 40 1200 55% 9% Mar-12 100 1200 55% 10%

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Industry Recognition
RPG Group is the Bronze Award winner for the Indian market in the 2010 Retail Asia-Pacific Top 500 Ranking Spencers ranked 3rd in Brand Equitys list of Top Indian Retailers

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THANK YOU

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Safe Harbor
The materials contained herein (the Materials) are for use at this presentation only and not for further distribution by you or any other person. Neither the Materials, nor anything contained herein, shall form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of any of the companies described herein, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. 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. The Materials are confidential and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. The Materials do not constitute an offer or recommendation regarding the securities of the companies described herein. Except for the historical information contained herein, statements in this release which contain words or phrases such as will, aim, will likely result, would, believe, may, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek to, future, objective, goal, strategy, philosophy, project, should, will pursue and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks.PCBL undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

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