Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Q3 FY2020 Earnings Presentation
35 slides from Adani Energy Solutions's earnings presentation, Feb 13, 2020
Slide 1: Adani Transmission Limited Q3 and 9M FY2020 Results Presentation
Adani Transmission Limited Q3 and 9M FY2020 Results Presentation 13 February 2020
Slide 2: Table of Contents
Table of Contents A Adani Group Overview B Adani Transmission - Portfolio C ESG - Integrated ESG Framework for enhanced value creation D Operational and Financial Highlights E Appendix 1 Supplementary Financial Information 2 ATL’s Structure and Presence Q3 and 9M FY20 Results Presentation – February
Slide 3: A. Adani Group - Amongst the Largest Infrastructure & Utility Portfolio of the World
A. Adani Group - Amongst the Largest Infrastructure & Utility Portfolio of the World
Slide 4: Adani: leading utility & infrastructure platform (1988 – 2019)
Adani: leading utility & infrastructure platform (1988 – 2019) News and Updates ESG • Adani Group, at a portfolio level to meet COP21 targets 7 years before schedule • Would achieve 32% of the generation from renewable capacity by 2023 • & 32.5% of the total investments from demand response system b
Slide 5: Adani: World Class Infrastructure & Utility Portfolio
Adani: World Class Infrastructure & Utility Portfolio Transport & Logistics Portfolio(2) Utility & Power Portfolio(2) Adani 62.3% 100% 100% 75% 75% 75% 75% APSEZ AAPT SRPCL ATL APL AGEL AGL Port & Logistics Port Rail T&D IPP Renewables Gas DisCom 75% AEL(1) Incubator 100% 100% 100% 100% AAHL ATrL AW
Slide 6: Adani: Repeatable, Robust and Proven model to delivery RoE
Adani: Repeatable, Robust and Proven model to delivery RoE Phase Development Operations Post operations Origination Site Construction O&M and Capital development technology management Analysis & market Site acquisition Engineering & Life cycle O&M Reduction of cost intelligence design plan
Slide 7: Adani: Repeatable, Robust Business Model Applied Consistently to Drive Value
Adani: Repeatable, Robust Business Model Applied Consistently to Drive Value Key Business Model Attributes Successfully Applied Across Infrastructure & Utility Platform Development at scale and within time and budget India’s Largest Longest Private HVDC Largest Private 648 MW Ultra Mega Largest Si
Slide 8: B. Adani Transmission – Portfolio
B. Adani Transmission – Portfolio
Slide 9: ATL: Largest Private T&D Company in India
ATL: Largest Private T&D Company in India Execution Strength and Pan India AEML - One of the best-run 765 KV, 400 KV, 220 KV EHT 3 million + Presence 93-year old integrated utility AC Pan-India network & only Retail Electricity Households catering to gateway city of private sector co. to operate Mum
Slide 10: ATL's Evolution and Operational Portfolio
ATL’s Evolution and Operational Portfolio Adani Transmission Limited ATL’s Transmission Network (ckt km) has grown 2.7x in 3 years; and Distribution business acquired in FY19 100% 100% 100% 100% 100%(1) 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP ATIL MEGPTCL AEML ATBSPL ATRL RRWTL CWRTL STL MTS
Slide 11: ATL Project Pipeline at a Glance
ATL Project Pipeline at a Glance Adani Transmission Limited 100% LOI Received 100% 100% 100% 100% 100% 100% 100% Lakadia Jam Ghatam- Obra-C WRSS – Bikaner - Kharghar NKTL FBTL Banas- Kham- pur Badaun XXI (A) Khetri - Vikhroli kantha baliya North Lakadia- 400kv Karanpura Fategarh Lakadia - Bikaner -
Slide 12: C. ESG - Integrated ESG Framework for enhanced value creation
C. ESG - Integrated ESG Framework for enhanced value creation
Slide 13: Safety: Always First
Safety: Always First Inculcating Safety Culture across organization Safety Initiatives: Safety Awareness: ▪ Training: Over 16,000 man-hours of safety awareness Electrical Safety Week in association with Industrial and training Labour & Energy department, Maharashtra ▪ Gensuite: Dedicated app for s
Slide 14: ATL: Integrated ESG Framework for enhanced value creation
ATL: Integrated ESG Framework for enhanced value creation Technological advancement for minimal TARGET BY SEP downtime during maintenance better availability increased EBITDA 2021 Renewable Power Procurement at below APPC tariff reduction for 12 mn Mumbai 12x growth in consumers renewable powe
Slide 15: ATL: Environment awareness and initiatives
ATL: Environment awareness and initiatives ATL recognizes that below environment related factors have major impact on its business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Management Waste Management Technology Driven :
Slide 16: AEML: Initiatives towards reduction of carbon footprint
AEML: Initiatives towards reduction of carbon footprint Renewable Power Climate Awareness Targeted 30% of consumption from Renewable sources Environmentally compliant generation at ADTPS Committed to increasing share of renewable power procurement from current 3% to 30% by 2023 and 50% 100% Fly as
Slide 17: D. Operational and Financial Highlights
D. Operational and Financial Highlights
Slide 18: Recent Developments
Recent Developments ▪ Transmission: ▪ Cost Optimisation through US $ bond issuances Bond Issuance: ATL’s inaugural US Private Placement and first USPP from India over a decade. ATL has priced the USPP bond (30 yr amortising bond) at 5.20% for US$310mn for 7 stapled assets. Bond Issuance: Adani T
Slide 19: 9M FY20: Operational and Financial Highlights
9M FY20: Operational and Financial Highlights Operational Operational Revenue ▪ Transmission: Avg. availability 99.7% in 9M (Rs. in crore) Transmission Distribution 89% YoY ▪ Distribution: AT&C loss down 38 bps in 9MFY20 at 7.89% driven by ongoing 8,017 technical loss and theft reduction initiatives
Slide 20: Q3 FY20: Operational and Financial Highlights
Q3 FY20: Operational and Financial Highlights Operational Operational Revenue ▪ Transmission: Avg. availability 99.6% in Q3 (Rs. in crore) Transmission Distribution 3% YoY 1% QoQ ▪ Distribution: AT&C losses in Q3FY20 was at 8.69% due to lesser billing days as 2,572 2,588 2,495 against purchase days.
Slide 21: Transmission: Line availability and Incentive
Transmission: Line availability and Incentive Consistent availability above normative levels ensures periodic incentive maximization Availability Across Operational Assets(1) (%) Focus on Maximizing Incentives % Normative Incentive FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 HVDC - CERC 3.8% 3.8% 2.3% 2.3% 2.
Slide 22: AEML – The Distribution Business: Strong Operating Metrics
AEML1 – The Distribution Business: Strong Operating Metrics Supply Reliability (ASAI) (%) Distribution Loss (%) Maintain 99.9% Target of <6% reliability 8.26% 99.990% 99.992% 99.990% 99.992% 38 bps 7.89% 9M FY19 9M FY20 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Customer Count (mn) Units Sold (MU’s) E-payments
Slide 23: P&L: 9MFY20 vs. 9MFY19
P&L: 9MFY20 vs. 9MFY19 (Rs in Crore) 9M FY20 9M FY20 9M FY20 9M FY19 9M FY19 9M FY19 # Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 1,985 5,996 7,980 1,637 2,574 4,211 1.1.a Transmi
Slide 24: P&L: Q3FY20 vs. Q3FY19
P&L: Q3FY20 vs. Q3FY19 (Rs in Crore) Q3 FY20 Q3 FY20 Q3 FY20 Q3 FY19 Q3 FY19 Q3 FY19 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 666 1,893 2,559 564 1,919 2,483 1.1.a Transmission
Slide 25: Transmission Business: Revenue and Operating EBITDA Bridge
Transmission Business: Revenue and Operating EBITDA Bridge (Rs. in crore) Q3FY20 - Revenue Bridge YoY Q3FY20 – EBITDA Bridge YoY 800 700 109 700 102 666 600 7 (12) (2) 600 0.2 5 564 500 500 400 400 300 300 627 519 200 200 Q3 FY20 Due to seven ATBSPL MEGPTCL - WTPL & WTGL Q3 FY19 newly Acquisition Q4
Slide 26: Distribution Business: Revenue and Operating EBITDA Bridge
Distribution Business: Revenue and Operating EBITDA Bridge (Rs. in crore) Q3FY20 - Revenue Bridge YoY Q3FY20 – EBITDA Bridge YoY 2,200 (34) (51) 9 (10) 16 700 1,900 600 (69) 219 1,600 500 (134) 2,011 1,942 400 13 1,300 (21) 300 468 462 1,000 Q3 FY20 Income from Fuel Wheeling CSS TPC & Other Q3 FY19
Slide 27: E-1. Appendix – Supplementary Financial Information
E-1. Appendix – Supplementary Financial Information
Slide 28: P&L: Q3FY20 vs. Q2FY20
P&L: Q3FY20 vs. Q2FY20 (Rs in Crore) Q3 FY20 Q3 FY20 Q3 FY20 Q2 FY20 Q2 FY20 Q2 FY20 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 666 1,893 2,559 662 1,914 2,576 1.1.a Transmission
Slide 29: ATL Financing Prowess: Diversified funding sources and debt maturity
ATL Financing Prowess: Diversified funding sources and focus on debt maturity & cost rationalization Diversified Debt Mix (31st Dec 2019)1 Extended Maturity Profile1: Improved Returns and Low Refinancing Risk US$ Bond Loans/ NCD QIA sub-debt - ECB ECB FY16 <1Y 1 to 5 Y >5Y 9M FY20 1% 2% 10% 12% 9% 1
Slide 30: Capital Management Program: ATL Obligor Group US$ Bonds
Capital Management Program: ATL Obligor Group US$ Bonds Extinguished capital refinancing risk by long-term US$500mn 4.25% 16.5yr Amortizing Senior Secured Bond issued in November 2019 Annual Debt Obligation (Incl. Interest and Repayments) Maturity Profile 12.0 11.2 11.0 (Rs. Bn) 10.8 10.6 10.4 Pre-b
Slide 31: Credit Rating
Credit Rating International- Obligor Group SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond, Masala Bond BBB-/Stable ATL CARE, India Rating AA+ Stable S&P Dollar Bond, Masala Bond BBB-/Stable AEML CARE AA Stable Moody’s Dollar Bond,
Slide 32: E-2. Appendix – ATL's Structure and Presence
E-2. Appendix – ATL’s Structure and Presence
Slide 33: ATL Ownership Structure and Asset Details
ATL Ownership Structure and Asset Details Promoters Public 74.9% 25.1% 100%1 100% Transmission SPVs Distribution SPV 15 Operating SPVs, 9 under construction SPVs1,2 Adani Electricity Mumbai Limited (AEML) acquired with effect from 29 August 2018 Ckt Kms2 Ckt Kms Average remaining Concession Life Cat
Slide 34: ATL Geographic Footprint
ATL Geographic Footprint Transmission1 Distribution1 BHAYANDAR MIRA ROAD MIRA ROAD NORTH NORTH DAHISAR DAHISAR ZONE ZONE BORIVALI BORIVALI KANDIVLI KANDIVLI KANDIVALI KANDIVL OFFICE OFFICE I MALAD MALAD DINDOSHI CENTRAL CENTRAL OFFICE OFFICE ZONE ZONE GOREGAON SOUTH SOUTH JOGESHWARI JOGESHWAR CENTRA
Slide 35: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its herein to reflect any change in events, conditions or circumstances on which any such statements are based. subsidiaries, the “Company” or “ATL”) to you solely for your refere