Coal India Corporate Presentation 18 November 2013

8/11/2019 Coal India Corporate Presentation 18 November 2013

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Coal India LimitedCorporate Presentation

November 2013

Energy Security, Growth & Sustainable Development


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2

Disclaimer

This presentation is issued by Coal India Limited (the Company or Coal India or CIL) for general information purposes only, without regard to specific objectives, suitability,

financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or anysolicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in

connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by

the Company to be construed as legal, accounting or tax advice.

The presentation contains various financial data and business related data concerning the Company (including coal reserves, resources and production capacity), you may note that,

unless otherwise specified, all such data is on consolidated basis, i.e., the Company and all its subsidiaries taken together. Further, it may be noted that such data / figures may have

been rounded off to the nearest integer.

This presentation may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any

representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by

any person. Failure to comply with this restriction may constitute a violation of applicable laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly,

in the United States or to any U.S. persons within the definition set out in Regulation S under the Securities Act of 1933, as amended (the Securities Act). The distribution of this

document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such

restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations.

You further represent and agree that (i) (A) you are located outside the United States, you are not a U.S. person within the definition set out in Regulation S under the Securities Act

and you are permitted under the laws of your jurisdiction to receive this presentation or (B) you are located in the United S tates and are a qualified institutional buyer (as defined in

Rule 144A under the Securities Act) and a "qualified purchaser" (as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended) and (ii) you are not, and you are

not acting on behalf of, a Benefit Plan Investor" as defined in the Employee Retirement Income Security Act of 1974, as amen ded (ERISA), (a Relevant Person). This presentation

is only directed at Relevant Persons and any person who is not a Relevant Person should not act or rely on this presentation or any of its contents.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would

be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under

the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable

securities laws of any state or other jurisdiction of the United States. The Companys securities have not been and will not be registered under the Securities Act.

This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be

reviewed or approved by any statutory or regulatory authority in India or by any stock exchange in India. This presentation includes statements which may constitute forward-looking

statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements

concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends",

"projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources such

as the Government of India's 12th 5 Year Plan (2012 2017), contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. The actualresults could differ materially from those projected in any such forward-looking statements because of various factors, including, but not limited to, changes in demand, competition and

technology. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees

guarantees that the assumptions underlying such forward-looking statements are free from errors nor do any of such persons accept any responsibility for the future accuracy of the

forward-looking statements contained in this Presentation or the actual occurrence of the forecasted or targeted developments nor do they assume any responsibility to publicly

amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. Forward-looking statements speak only as

of the date of this presentation.

The information contained in these materials has not been independent ly verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective

employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or

inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents

or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness,

completeness or verification or for any other s tatement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall

be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in

this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertake no obligation to update or revise any information in this

presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so

after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.


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Presentation Outline

I. Coal India: Company Overview

II. Overview of the Coal Sector

III. Key Company Highlights

IV. Financial Summary

V. Appendix

A. Corporate Structure

B. Key Risks


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I. Coal India: Company Overview


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5

Genesis

Vision

1Largest listed coal company by annual production in FY2013

Our Genesis, Vision & Mission

Mission

To emerge as a global player in the primary energy sector committed to provide energy security to the country byattaining environmentally & socially sustainable growth through best practices from mine to market

To produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendly

manner with due regard to safety, conservation and quality

1973

Nationalization of coal mines to provide

for higher growth in coal sector

Incorporation as a private limited

company as Coal Mines Authority

Limited

Coal production at ~70 million tons

1975

To integrate and streamline the

structural set up, re-organised

Coal Mines Authority Limited as

Coal India Limited

Coal production at ~79 million tons

Today

A Maharatna Company

Largest pure play coal

producer in the world1

Coal production at ~452

million tons in FY2013


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Corporate History

Largest Pure Play Coal Producer In The World1

Coal MinesAuthority

Limited

reorganized

as Coal India

Overallproduction of

coal crossed

100 million

tonnes by

Coal India

and itssubsidiaries

CIL becomesindependent

as budgetary

support

withdrawn

completely

ConferredMini Ratna

Status

Awarded

AAA/Stable

Rating byCrisil

AwardedNavratna

Status

Overall

production of

coal crossed400 million

tonnes by

Coal India

and its

subsidiaries

Listing atBombay

Stock

Exchange

and National

Stock

Exchange

AwardedMaharatna

Status

Shift toGCV2based

pricing for

non-coking

coal

1Largest listed coal company by annual production in FY2013

2Gross Calorific Value

1975 1981 19982006 /

2007

2008 /

20092010 2011 2012

Deregulationof coal prices

in India

completed

2000

A Maharatna Company with a History spanning Four Decades


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7

62.7

80.918.2

Resources Reserves Total

Coal IndiaResources and Reserves1

Key to Indias Energy Security

Data as of April 1, 2011 based on the United Nations Framework Classification (UNFC) classification as measured and prepared by CMPDI Ltd, a wholly owned subsidiary of Coal India Limited

Provisional Statistics for 2013 from Coal Controller Organisation, Ministry of Coal, Government of India

BP Statistical Review, 2013

Coal India: Key to Indias Energy Security

Presence in Mozambique through Coal Videsh

2D / 3D seismic survey methods are being adopted for

exploration purpose, enabling faster identification of

resources

Development of Coal Bed Methane (CBM) / Coal Mine

Methane (CMM) prospects in collaboration with the

Government Agencies

Coal India81%

SingareniCollieries

10%

Others9% Coal India contributed 81% to Indias total coal production

in FY2013

Coal accounts for ~52.9%3of Indias primary energy

consumption

Coal India operates 462 mines in 21 major coalfields via 7

operating subsidiaries

billion tons


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Recognition by Platts in 2012 (1) Other Awards

Coal India: Leading Global Coal Company

(1) Platts Top 250 recognizes outstanding energy companies based on financial performance globally, regionally and by industry sector. Financial performance is measured using four key metrics: asset worth,

revenues, profits, and return on invested capital.

Platts Ranking - http://top250.platts.com/Top250Rankings(2) Out of the 250 Companies, Coal India ranks second amongst the Coal & Consumable Industry in terms of its financial performance.

Platts Ranking - http://top250.platts.com/Top250Rankings/2012/Region/CoalandConsumableFuels

Coal India Ranks 48thamongst the

Top 250 Energy Companies across

the World, based on its Financial

Performance.

Rank Company Country

1 China Shenhua Energy Co. Ltd.

2

Coal India Ltd.

3 China Coal Energy Co. Ltd.

4 Yanzhou Coal Mining Co. Ltd.

5 Peabody Energy Corp.

Global CSR Excellence and Leadership

Award 2013

Best Geospatial Application in an

Enterprise Award 2013

India Pride Award 2011 in Energy &

Power Category

MoU Excellence Award for Outstanding

Rating 2009-10

#2 in Coal and Consumable Fuels

Globally in 2012 (2)


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Total coal resources of 62.7 bt2and total coal reserves of 18.2 bt2

Largest pure play coal producer in the world1

Raw coal production (FY2013): ~452 million tons

Accounted for 81% of total coal production in India in FY2013

Operates 462 mines across 8 states in India as on 31 stMarch 2013

Coal and lignite account for ~68.5%4of the total commercial energy production in India (FY2012)

69.8 GW of additional coal and lignite based power generation capacity targeted during the XIIth5 Year Plan

Coal including lignite targeted to be used as fuel for 58.9% of the incremental power capacity during the XIIth5 Year Plan

Increase reserve base in India, acquire strategic international resources and identify joint development opportunities

Increase in production and productivity through deployment of state-of-the-art technology

Focus on sustainable development initiatives through resettlement & rehabilitation, reforestation, water harvesting, education,

health and safety initiatives

Introduction of third party sampling of coal at loading points from 1 stOctober 2013 for enhancing consumers satisfaction

Advanced equipment and technology for higher mechanization

Total revenues of INR 770,494m and EBITDA5of INR 277,574m for FY2013 (EBITDA margin: 36%)

FY11-13 EPS CAGR of 26.8%, Return on average equity of 39%5and Dividend payout ratio of 51% for FY2013

Net cash position5of INR 619,254m as of 31stMarch 2013

Experienced and qualified management team

Maharatna status allows for greater autonomy

Key Highlights

Largest PurePlay Coal

Producer inthe World

KeyBeneficiary of

Power SectorGrowth

Strategy forGrowth

Commitmentto Sustainable

Development

Healthy

Returns

ExperiencedManagement

Largest listed coal company by annual production in FY20132Data as of April 1, 2011 based on the United Nations Framework Classification (UNFC) classification as measured and prepared by CMPDI Ltd, a wholly owned subsidiary of Coal India Limited

Provisional Statistics for 2013 from Coal Controller Organisation, Ministry of Coal, Government of India4XIIth 5 Year Plan Document published by the Planning Commission and released in 2012-13, with FY2012 provisional data. There can be no assurance that this target wi ll be reached5Net cash position is calculated as cash balance and current investments reduced for outstanding debt; ROAE calculated as the ratio of FY2013 Profit after tax to the average shareholders equity for FY2013

and FY2012. EBITDA (unaudited) has been calculated by adjusting (adding back) the finance cost, depreciation / amortization/ impairment, provisions, write-offs, prior period adjustments and extra-ordinary

items. EBITDA includes other income and is net of overburden removal expense


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II. Overview of the Coal Sector


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4,961

6,9017,252

7,692 7,865

CY2002 CY2009 CY2010 CY2011 CY2012

CoalSecond Most Used Fuel Globally(1)

India Amongst the Leading Coal Producing Countries(2)

Steady Growth in Global Coal Production(1)

Source: (1)BP Statistical Review 2013; Coal Controller of India for India data(2)Production data for India is as per FY2003 and FY2013 as published by the Coal Controller of India (and does not include lignite), for other countries the data is for CY2002 and CY2012 as published

in BP Statistical Review 2013

Global Coal Sector

Oil33.1%

Natural Gas23.9%

Coal29.9%

NuclearEnergy4.5%

Hydro electric6.7%

Renewables1.9%

India is the 3rdLargest Coal Producer Globally

million tons

million tons

World Primary Energy Consumption (CY2012)

1,550993

341 341 103 220

3,650

922558 431 386 260

China US India Australia Indonesia South Africa

2002 2012


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532 533 540 558

795

73 69 103138

186

605 602643

696

981

FY2010 FY2011 FY2012 FY2013 FY2017Target

Production Import

CoalIndias Primary Source of Energy(1)

Coal Resources in India as on 01-Apr-2013(3)

Category Proved Indicated Inferred Total

Coking (million ton) 18,366 13,595 2,101 34,061

Non Coking

including tertiarycoal (million ton)

104,816 129,037 30,999 264,852

Total (million ton) 123,182 142,632 33,100 298,914

Demand Supply Scenario(2)

Source : (1) BP Statistical Review 2013, (2) Coal Controller of India, (3)Inventory of geological resources of Indian coal prepared by Geological Survey of India on the basis of resources estimated by CMPDI,

MECL, SCCL, GSI and DGM (Maharashtra) and DGM (Chattisgarh) as on 01-Apr-2013, Data as per ISP methodology which can be different from that under UNFC classification(4)

As per XIIth

5 Year Planreleased in 2012-13, with FY2012 provisional data. There can be no assurance that this target will be reached.

India Coal Sector Overview

Oil30.5%

Natural Gas8.7%

Coal52.9%

NuclearEnergy1.3%

Hydro electric4.6%

Renewables1.9%

million tons

(4)

Coal meets 30% of the worlds energy needs and accounts for 52.9% of Indias primary energy needs

India Primary Energy Consumption (CY2012)


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III. Key Company Highlights


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Largest listed coal company by annual production in FY20132Data as of April 1, 2011 based on the United Nations Framework Classification (UNFC) classification as measured and prepared by CMPDI Ltd, a wholly owned subsidiary of Coal India Limited3EBITDA (unaudited) calculated by adjusting (adding back) finance cost, depreciation / amortization, impairment, provisions, write-offs, prior period adjustments and extra-ordinary items. EBITDA includes other

income and is net of overburden removal expense; ROAE calculated as ratio of FY2013 Profit after tax to average shareholders equity for FY2013 & FY2012

Key Company Highlights

1

4

Worlds Largest Pure Play Coal Producer

1

FY2013 production of 452 million tonsacross 462 operational mines, with

ongoing projects for further ramp-up

62.7 bt Resources and 18.2 bt Reserves2

2

35

6

Growth Drivers

Favorable expected demand

from key sectors such as powerand steel

Cost Leadership with Stable Realizations

Higher proportion of open cast mining operations

and increasing labor productivity

Positive Margins & Returns

FY2013 EBITDA margin of 36%3

FY2013 ROAE of 39%3

FY2013 Dividend Payout Ratio of

51%

Qualified & ExperiencedLeadership

One of the premier state

run enterprises with a

highly experienced

management team

Organizational Commitment toSustainable Development

High focus on social,

environmental and health & safety

initiatives

Documented CSR policyWorlds Largest

Pure Play

Coal Producer1

7

Growth Drivers

Extensive

Mining

Capabilities

Cost Leadership

with StableRealizations

Positive Margins

& Returns

Qualified

& Experienced

Leadership

Organizational

Commitment to

Sustainable

Development

Extensive Mining Capabilities

State of the art technology in opencast mining

Focus on meeting commitments tothe power sector


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Largest Pure Play Coal Producer Globally1, Slated for Further Growth

377 395 390 393 408

173 179

795

27 36 41 4344

19 21

404 431 431436 452

192 200

FY2009 FY2010 FY2011 FY2012 FY2013 H1FY2013

H1FY2014

FY2017TargetNon-Coking Coking

Ongoing Projects Other Initiatives

148 ongoing projects under various stages of

implementation, out of which

90 projects have obtained both forestry and

environment clearances (as of 31-Mar-2013)

134 projects expected to contribute 335

million tons in FY2017

SECLs4Kusmunda mine expansion to 50

million ton annual production capacity is

under progress5

Note: FY ended 31-March

Source: BP Statistical Review 2013, XIIth5 Year Plan published by the Planning Commission of India1Largest listed coal company by annual production in FY20132Global production data for year ended 31-Dec; Coal India production data for year ended 31-March; For comparison purposes with global production for Dec-2012, Coal India data for FY2013 has been used3Figure refers to target for total domestic coal production in India in FY2017 as per XIIth5 Year Plan released in 2012-13 with FY2012 provisional data. There can be no assurance that this target will be reached.4South Eastern Coalfields Limited5Based on Company data and not independently verifiable

Worlds Largest Pure Play Coal Producer1

million tons 5.7% of globalCY2012

production

Investment in logistics and

infrastructure for coal off take

3 major railway infrastructure

projects to improve offtakefrom 3 growing coalfields in 3

subsidiaries

Investment in larger sizeheavy earth moving

machineries

Future Projects

126 new projects, with a targeted

capacity of 438 million tons, havebeen identified for the XIIth5 Year

Plan Period, out of which 78 projects have project reports

formulated

60 projects expected tocontribute 88 million tons in

FY2017

Indias target for totaldomestic coal

production as perXIIth5 Year Plan

3


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200

318

119

FY2012 Targeted Capacity AdditionDuring XIIth 5 Year Plan

FY2017Target

Sector Wise Demand of Coal(FY2013)

Source : XIIth5 Year Plan Document published by the Planning Commission of India, released in 2012-13 with FY2012 provisional data. There can be no assurance that this target will be reached

Breakup of sector wise demand for non-coking coal for FY2013

Growth Drivers In Place

GW

2

Robust Expected PowerCapacity Addition

Coal / Lignite58.9%

Hydro9.2%

Nuclear

4.5%

Gas / LNG

2.1%

Renewables

25.3%

Demand Growth

from End Industries

Most of the Incremental Power

Capacity during XIIth5 Year Plan Coal Based

Large energy deficit coupled with low per capita consumption to

drive significant capacity additions in power sector

69.8 GW of additional coal and lignite based power generation

capacity targeted during the XIIth5 Year Plan

Coal is also expected to account for most of the incremental

power capacity in India

Besides power, cement and steel industries are also expected to

increase coal demand

Power

71%

Captive Power6%

Cement4%

Steel5%

Fertilisers

14%


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Source: Company data and filings As per Company data

Target Dispatches to the Power Sector as per Companys annual reports

Extensive Mining Capabilities

Exploration Mining Beneficiation

0.56 million meters of drilling achieved in

FY2013

Exploratory drilling in 67 CIL blocks /

mines in FY2013

Capacity expansion and modernization ofdrills with 31 mechanical and 4 hydro-

static drills procured in FY2013

Exploration and drilling expenses of INR

2.5billion incurred in FY2013

462 mines owned

169 open cast mines

270 underground mines

23 mixed mines

Production in FY2013 was 414 million ton

from open cast mines and 38 mi llion ton

from underground mines

Operates 17 washeries

5 non-coking coal beneficiation facilities

with feedstock capacity of 17 mtpa

12 coking coal beneficiation facilities withfeedstock capacity of 22 mtpa

3

312

333 328

342

298304

312

345

95.5%91.4%

95.3%100.9%

FY2010 FY2011 FY2012 FY2013

Target Dispatches to Power Sector Ac tual Dispatch to Power Sector % Achieved

Focus On Meeting TargetDispatches To The Power Sector

million tons


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1,187

1,443 1,472 1,452 1,425

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

Low Absolute Operating Cost per Ton Stable Average Sales Realizations

Cost Leadership Drivers

Note: Consolidated financials; FY ended 31-March; Yearly financials are audited while half yearly financials have been subject to a limited review

Indicative operating cost per ton calculated as ratio of total expenses adjusted (added back) for finance costs, depreciation / amortization / impairment, provisions and write-offs to total raw coal productionsourced from annual audited accounts and quarterly limited review accounts

Average realizations calculated as the ratio of net revenues from the sale of coal to the total dispatches during the period. The total dispatches include raw coal, washed coal, coke and other products.

Breakup of FY2013 operating expenses, excluding finance charges, depreciation / impairment, provisions and write-offs4FSAs are contractual Fuel Supply Agreements with third parties

Cost Leadership With Stable Realizations4

839

1,0391,090

1,209 1,241

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

Large proportion of mining operations through open cast mines

Redeployment of manpower and resources to more productive units,

leading to improving capacity utilizations

Employee expenses account for ~55% of total operating expenses; wage

hikes already carried out in FY2012

Utilization of equipment of larger size and capacity in order to increase

productivity and efficiency

State-of-the-art technology deployed in the open cast mines

INR per ton

FY2013 Operating Expenditure Profile

Employeeexpenses

55.4%

Contractualexpenses

11.8%

Cost ofmaterials /Inventorychange

13.3%

Power & Fuel

4.7%

Welfare

expenses1.3%

Repairs

1.7%

Overburden

Removal6.5%

Others

5.3%

INR per ton Dispatches under FSAs4 to third parties and

under e-auction comprised 85.4% and 10.6%

respectively of total FY2013 off-take volumes


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17.2

23.5

27.6

12.0 10.7

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

189,286

246,746277,574

120,851 114,138

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

EBITDA

EBITDA and EBITDA Margin (%)

ROAE (%)

EPS and EPS Growth (%)

Dividends Declared & Payout Ratio

Note: Consolidated financials in INR millions; FY ended 31-March; Yearly financials are audited while half yearly financials have been subject to a limited review EBITDA (unaudited) has been calculated by adjusting (adding back) the finance cost, depreciation / amortization/ impairment, provisions, write-offs, prior period adjustments and extra-ordinary items. EBITDA

includes other income and is net of overburden removal expense

ROAE calculated as the ratio of Profit after taxes to the average shareholders equity for the current and the prior fiscal year; ROAE for H1 FY2014 has been calculated as the ratio of profit after taxes to

average shareholders equity as of Sep 30, 2013 and Mar 31, 2013 and annualized

Positive Margins and Returns

24,634

63,164

88,429

23%43%

51%

FY2011 FY2012 FY2013

Dividends Declared Dividend Payout Ratio (%)

5

36.8%

40.1% 39.0%

34.2%

26.2%

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

Coal India ranked #2 in Coal and Consumable Fuels globally by Platts in 2012 on the basis of its financial performance

INR millions

INR millions

INR per share

3.9 10.0 14.0DPS

(INR per

share)

34.4% 35.3% 36.0% 34.3%

EBITDA Margin (%)

31.5%


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In accordance with the provisi ons of our Articles of Association, the President of India, acting through the Ministry of Coal , is in the process of appointing Independent Directors on our board of directors to

replace certain independent directors who have retired. However, depending on the timing of such appointments, it is possible that we may not be compliant with the requirements of Clause 49 of the Listing

Agreement until such appointments are completed.

Qualified and Experienced Leadership Team5

Executive

Non-

Independent

Directors

Post-graduate in Chemistry and Economics, with a post-graduate diploma in Forestry

IAS officer of the 1986 batch, with wide international

exposure

Prior to this, was the CMD of SCCL and took the company

to a higher growth trajectory

Sh. S. Narsing Rao

Chairman &

Managing Director

B.Tech. in Mining from ISM, Dhanbad

Member of MGMI, IMMA and

Institution of Engineers

Has more than 33 years of experiencein coal mining industry

Sh. N. Kumar

Director, Technical

Post graduate degree in social work

from Madurai University

Has more than 30 years of experience

in the human resources department

Sh. R. Mohan Das

Director, Personal &

Industrial Relations

Member of the Institute of Chartered

Accountants of India

Has extensive experience in

managing the finance function, across

companies, including stints at CCL

and BEML

Sh. A. Chatterjee

Director, Finance

B.Tech. in Mining from ISM, Dhanbad

First Class Certificate of Competency

under the Indian Mines Act

More than 35 years of experience in

the coal mining industry

Sh. B. K. Saxena

Director, Marketing

Government

Nominee

Directors

Has held various positions in

Government of Kerala and

Government of India, including as

Joint Secretary in Cabinet Secretariat,

Ministry of Panchayati Raj & Ministryof Tribal Affairs (Govt. of India)

Dr. A. K. Dubey

Additional Secretary,

Ministry of Coal

Also serves as Joint Secretary &

Financial Advisor to ministries of

mines, corporate affairs, youth affairs

& sports

Has held senior managerial positions

across various ministries /

departments in the Govt. of India

Smt. Sujata Prasad

Joint Secretary &

Financial Advisor,

Ministry of Coal

Independent

Directors

Worked as Secretary,

Ministry of Coal and

Joint Secretary in

Ministry of Defence

Introduced GCV

based grading /

pricing in coal industry

Sh. Alok Perti

Independent

Director

Has served the State

Government of Uttar

Pradesh in various

capacities, including

Principal Secretary

and Director General,Training

Dr. R. N. Trivedi

Independent

Director

Member of ICAI

with wide

experience in

taxation and

finance consultancy

Sh. K. R. Gupta

Independent

Director


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Organizational Commitment to Sustainable Development

Social

Environmental

Safety

Coal Indias Resettlement & Rehabilitation Policy 2012 provides flexibility to deal effectively with

issues and determine packages suited to local needs

Policy accords high priority for m inimizing disturbance of the local population while

operating new mines and expanding existing mines

CSR initiatives principally focused on project affected persons and persons living within 25kmradius of project sites

Allocated INR 5.96bn to fund CSR activities in FY2013, actual spent of INR 1.4 billion in FY2013

Development of community infrastructure: 536 schools, 86 hospitals with 1,524 doctors and

5,835 hospital beds and 423 dispensaries as of March 31, 2013

53 units and 3 entire subsidiaries are ISO 9001 compliant, 57 units and 2 entire subsidiariesare ISO 14001 compliant and 19 units and 2 entire subsidiaries are OHSAS 18001 compliant

Started satellite surveillance for land reclamation and restoration of open-cut mines

Planted 1.59m saplings during FY2013 and has planted 78m trees since inception

Various measures to reduce environmental pollution

Dust control with fixed / mobile water sprinklers at stock yards and roads

Treatment of water effluents from open-cut mines

Eco-friendly technology in open cast and underground mines

Introduction of belt conveyors, pit head railway sidings to reduce road transport

Structured multi-disciplinary Internal Safety Organization (ISO) to monitor implementation ofCILs Safety Policy

Multi-level safety monitoring agencies (from mine level up to ministerial level)

Annual and long term safety plan at the beginning of every calendar year

Higher mechanization of mining operations / adoption of best-in-class safety practices

More number of surface miners to avoid blasting operations, man riding systems,mechanization of drilling for roof bolting etc.

Continuous improvement in overall safety performance. Reduction in number of fatalities from 92

in CY2010 to 56 in CY2012

Working towards

increasing

acceptability of

mining practices

6

Source: Company data and filings as on 31stMarch 2013

Units are defined as mines, hospitals and workshops


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Key Initiatives and Expected Outcomes

Enhancing availability / accessibility of resources

Reducing costs and improving efficiency

Removing logistical bottlenecks

Stable average price realizations

Increasing acceptability of mining practices through

social, environmental and safety initiatives

Continuous growth

Cost leadership

Operating efficiency

Sustainable

development

Profitability

1

2

3

4

5


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IV. Financial Summary


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24

Total Revenues

551,014

699,523770,494

352,374 362,863

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

Net Income

EBITDA and EBITDA Margin (%)

Dividends Declared & Payout Ratio

Note: Consolidated financials in INR millions; FY ended 31-March;Yearly financials are audited while half yearly financials have been subject to a limited review

Total Revenues include Revenues from Operations and Other Income

EBITDA (unaudited) has been calculated by adjusting (adding back) the finance cost, depreciation / amortization/ impairment, provisions, write-offs, prior period adjustments and extra-ordinary items. EBITDA

includes other income and is net of overburden removal expense

Coal Indias Financial Performance (1/2)

108,674

147,882

173,564

75,473 67,834

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

24,634

63,164

88,429

23%

43%

51%

FY2011 FY2012 FY2013

Dividends Declared Dividend Payout Ratio (%)

INR millionsINR millions


EBITDA Margin (%)

189,286

246,746277,574

120,851 114,138

FY2011 FY2012 FY2013 H1 FY2013 H1 FY2014

EBITDA

34.4% 35.3% 36.0% 34.3% 31.5%


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25

Current Assets and Current Liabilities

Gross Fixed Assets

Cash, Current Investments and Debt

Capital Expenditure

Note: Consolidated financials in INR millions; FY ended 31-March;Yearly financials are audited while half yearly financials are subject to limited review

Fixed Assets include gross tangible and intangible assets, CWIP and intangible assets under development

Coal Indias Financial Performance (2/2)

683,183

874,150

996,922

266,659342,560 376,698

FY2011 FY2012 FY2013

Current Assets Current Liabilities

460,191

592,372632,307

15,210 15,274 13,053

FY2011 FY2012 FY2013

Cash Debt

458,064582,028

622,360

387,713

409,998

425,066

FY2011 FY2012 FY2013

25,397

37,272

29,152

FY2011 FY2012 FY2013



2,127

10,3449,947

Current Investments


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V. Appendix


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Appendix A:

Corporate Structure


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28

Subsidiary Wise Coal Mine Distribution

Corporate Structure

ECL23%

NCL

2%

SECL19%

WCL

18%

MCL

6%

CCL14%

BCCL

17%

NEC1%

Underground Opencast Mixed Total

ECL 87 17 1 105

NCL 0 10 0 10SECL 64 23 1 88

WCL 42 39 1 82

MCL 11 16 0 27

CCL 25 42 0 67

BCCL 40 19 20 79

NEC 1 3 0 4

Total 270 169 23 462

Mini Ratna

Central

Mine

Planning &

DesignInstitute

Ltd.

Eastern

Coalfields

Ltd.

Northern

Coalfields

Ltd.

South

Eastern

CoalfieldsLtd.

Western

Coalfields

Ltd.

Mahanadi

Coalfields

Ltd.

Central

Coalfields

Ltd.

Bharat

Coking

CoalLimited

Coal India

Africana

Limitada

100%

90% 10%

100% 100% 100% 100% 100% 100% 100% 100%

Data as of 31-Mar-2013; Breakup of mines across subsidiaries based on company data and not

independently verifiable
http://www.google.co.in/url?sa=i&rct=j&q=Coal%20India&source=images&cd=&cad=rja&docid=b12JiywPgHxLpM&tbnid=29JGcunFIp1X-M:&ved=0CAUQjRw&url=http://en.wikipedia.org/wiki/Coal_India&ei=xVcGUrDJFMKErAeP-4CoDQ&bvm=bv.50500085,d.bmk&psig=AFQjCNFpb2eCDQorbxxMCLSe6tXte4MVIg&ust=1376232907619497


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Appendix B:

Key Risks


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30

Coal Indias business operations are subject to various risks inherent to mining activities that could lead to injury including fatalinjury of personnel, damage to properties, environmental pollution and degradation, all of which may impact the corporate image of

Coal India

Coal Indias business performance is dependent upon other stakeholders / authorities

Coal India depends on rail and road transportation to deliver coal to its customers and any delays in implementation and

shortage in availability of the transportation infrastructure might adversely affect coal off-take

Delays or failure in acquiring land (and associated surface rights to access coal reserves) and obtaining forest &

environmental clearances from authorities may lead to project delays and non-compliance that could result in mine closure or

incurring fines

Coal India and its subsidiaries are subject to trade union activity and labor disputes that could lead to loss of production and / or

increased costs of production

Coal India, its subsidiaries and employees are involved in legal proceedings which, if determined unfavorably, may have an

adverse impact on the results of operations, financial condition and reputation

Coal India has policies and procedures against employing child labor in all of its facilities. However, illegal external community

mining and collection of materials (including by children) is a risk that may affect the Company

Coal Indias operations and production volumes may be subject to seasonal changes, particularly during the first half of the fisca l

year with rains / high temperatures restricting ability to carry out mining activities

Coal India sells coal at prices that are lower than the prices in the international coal markets

Coal India may be subject to penal actions by regulatory and statutory authorities in India, in the event that Coal India is unable to

comply with the provisions of any applicable law, including terms of the Listing Agreements that it has entered into with stock

exchanges in India

Key Business / Social / Environmental Risks

Documents

Coal India Corporate Presentation 18 November 2013