At IIFLS Enterprising India Conference 2010 3rd February 2010 Mumbai

Cautionary Statement

A US$6 billion Engineering & Manufacturing enterprise of its kind in India A Navaratna company and a Major Integrated Power Plant Equipment Manufacturer in the World

Profit Making Company since 1971-72

Consistent Dividend Paying Company for over thirty years (FY 1976-77 onwards) References in over 70 countries Installed base of more than 1,00,000 MW

Power

Transmission

Single Source for Multiple Solutions of Infrastructure & Industrial Sectors of the Economy
Oil & Gas NCES Industry Transportation

( As on 31st Dec09 )

(Rs. crore)

Rs. crore

Rs. crore

Total Order Book as on 31.12.09: Rs. 1,34,000 crore

(Rs. Crore)

Parameter Turnover EBIDTA EBIDTA Margin Profit Before Tax (PBT) Profit After Tax (PAT) EPS (Rs)

Q3 FY0910 7381 1755 24% 1644 1073 21.91

Q3 FY0809 6445 1327 21% 1223 791 16.13

YoY % + 15% + 32% +319 bps + 34% + 36% + 36%

Growth Story Continues

OB up to Q3FY0910 (Rs Cr) 36,425

Power 28425

Industry 7557

Exports 967

Rs.5564 Cr order for 3x660 MW Bara, Pryagraj PGCL, JP Group Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Amaravati Rs.2486 Cr order for 2x600 MW PIPAVAV Energy Pvt. Ltd Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Nasik

Industry Segment contribution to total Turnover: 25-27%

Transmission, 7.6%

Transformers Switchgear Indl. Control Gear / Control Panels Capacitors Insulators HVDC/ Transmission Projects

Transportation, 3.6%

Traction machines Traction Control gears DESL AC Locos / DG Sets / Other

Other Indl. Products, 12.8%

Industrial Machines Indl. TG / Boiler Sets Compressors Oil Field Equipment Valves Others

A major manufacturer of power plant equipment for various fuels Fully indigenized technology up to 600 MW from world leaders Supplies Steam turbines, generators, boilers and matching auxiliaries up to 800 MW ratings including supercritical sets of 660/800 MW 307 coal based sets installed, including 35 sets of 500 MW rating 365 nos. BHEL make Hydro Utility sets installed in the country
BHEL is fully geared up to meet demand for Power Plant Equipments in the Country.

Thermal 33298 41% Ordered on Others 36097 45% BHEL 43913 54% Hydro 6142 8% Gas 3973 5% Nuclear 500 1%

Manufacturing capacity expansion:

15,000 MW p.a. completion by Mar 2010 20,000 MW p.a. completion by Mar 2012

Supercritical Technology Business: Orders received for:

2x800 MW supercritical boilers for Krishnapatnam 2x660 MW supercritical sets for Barh-II, NTPC 3x660 MW Bara, Pryagraj PGCL, JP Group

JVs formed for:

2x800 MW supercritical thermal power project each with TNEB and MPPGCL 3x800 MW supercritical thermal power projects with KPCL

MoU signed with Mahagenco for 2X660 MW supercritical thermal power plant at Latur, Maharashtra

Nuclear Field:

Order received for steam generators for new rating 700 MWe Nuclear sets MoU signed with NPCIL for formation of JV for conventional island of Nuclear Power Projects. Technology tie-ups being explored for 700 MW and above TG sets. MoU signed with GE-Hitachi for cooperation in Nuclear island equipments for Power plants to be set up by NPCIL.

Technology Edge:

270 MW, 525 MW, 600 MW sub-critical thermal sets introduced R&D spend in 2008-09 at Rs. 690 Crore Advance Class Gas Turbines technology in place Tie-up with Sheffield Forgemasters Intl., UK for technology transfer in Forgings 765 and 1200 KV- development work being pursued Transportation-IGBT based technology being pursued Sole supplier in world for 420 kN/320 kN porcelain insulators for 800 kV HVDC transmission lines

Strategic Alliances:

Partnerships forged with NTPC, KEL & HEC for strengthening the supply chain Solar: MoU signed with BEL for formation of a JV to address Solar Photovoltaic business Transportation: MoU with GE for Diesel Electric locomotives and manufacture of propulsion systems Transmission: JV route covering Transformers, GIS, ACBs etc.

Inorganic Growth:

BHPV - 100% subsidiary

Global Forays:

Physical export orders of Rs.3,265 Crore in 2008-09 - from 22 countries Presently executing 40 contracts in 25 countries Forays in new markets Belarus, Senegal, Rwanda & new market segments in Syria, Tajikistan, Japan, Nigeria Long term business tie-up: 6year Rate Contract for 126 MW rated Gas Turbine Generating Sets from Oman one of its kind in the world MoU signed with TGR, Hungary for exploring opportunities for conventional boilers and R&M of boilers in European and CIS countries

Customer Confidence:

Confidence reposed by Private Sector customers: Highest ever (92%) private sector orders inflow of Rs 25,917 Cr/ 11,819 MW in Power Sector up to Q3FY10 Highest value order of Rs.2,005 Crore received in Industry Sector business segment from Hindalco for 6x150 MW BTG package for Mahan (MP) First ever order for generator transformers for 800 MW sets and also the largest rating to be installed in India for Mundra UMPP, reinforcing technological and market leadership in transformers

Other capability enhancing measures:

In two years (2007-09) manpower ramped up by 8,500 persons (ETs, STs, Artisans) Enhancing Vendor base for raw materials and Balance of Plant (BOP) Leveraging Welding Research Institute at Trichy to train high pressure welders of contractors Deploying additional Tools & Plants like heavy lift cranes suitable for erection of 800 MW, 500 MW, 250 MW Boilers

45,000 Cr. (2011-12) 18,739 Cr. (2006-07)

91,900 Cr. (2016-17)

Capability & Capacity Enhancement

Investment Rs.4200 Crores Globalization Export revenues to increase by 6 times to Rs.6700 Crore Spares & Services Revenues to grow by 4 times to Rs.4700 Crore R&D Spend to increase by 6 times to Rs.900 Crore HR Manpower to grow from 42,000 to 50,000 by 2011-12

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