Adani Green Energy Limited · NSE:ADANIGREEN

Adani Green Energy — Investor Presentation (November 2018)

49 slides from Adani Green Energy's investor presentation, November 2018

  1. Slide 1: Adani Green Energy Limited Investor Presentation

    AD ANI GREEN ENERGY LIMITED Investor Presentation November, 2018

  2. Slide 2: Confidentiality and Disclaimer

    Confidentiality and Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growt

  3. Slide 3: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 4 Page 13 Page 22 3

  4. Slide 4: Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure

    Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure Portfolio Adani Mkt Cap ~USD 14 bn 75.00% 62.30% 74.97 74.92% 86.58% 74.92% AEL APSEZ APL ATL AGEL AGL Energy Port & Logistics Thermal Power T&D Renewables Gas Distribution 25.00% 37.70% 25.03% 25.08% 13.42% 25.08% Public  Pan In

  5. Slide 5: Adani Group: Track Record of Delivering World Class Assets

    Adani Group: Track Record of Delivering World Class Assets Leveraging Core Strengths Delivering World Class Assets  Only HDVC line in India to be executed by a private player Large scale businesses delivering  Location: Mundra-Mohindergarh  consistent growth Longest Private HDVC  Capacity: 1,980

  6. Slide 6: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 6

  7. Slide 7: AGEL – Replicating Adani Infrastructure Success Story in Renewables

    AGEL – Replicating Adani Infrastructure Success Story in Renewables Accelerated Development With High Availability & CUF 0.33 Gw 0.81 Gw 1.96 Gw 2.16 Gw 3.18 Gw 21.14% 18.55% 18.25% 22.35% 21.68% 2 0.4 0% 1.8 1025 100.00% 1.6 99.88% 99.87% 99.45% 99.53% 99.55% 99.32% 1.4 98.00% 200 1.2 60 2,158 96.0

  8. Slide 8: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 8 Page 13 Page 22 8

  9. Slide 9: AGEL – Business Model & Structure

    AGEL – Business Model & Structure Business Model Structure 1 Fully integrated developer, owner & Adani Public operator 86.58% 13.42% Strongly focussed on cost of capital & 2 ROE Adani Green Energy 3 Focussed on continued value Various SPV’s all 100% accretion Owned AGEL listed on BSE and NSE Generat

  10. Slide 10: AGEL – Operational Capacity

    AGEL – Operational Capacity Overview of Capacity ( MW) Current Status – Operational MW 0% 20% 40% 60% 80% 100% Punjab 100 Uttar Pradesh Rajasthan 50 150 1,898 500 250 20 Gujarat Madhya Pradesh 1,385 48 12 60 1237 100 Maharashtra 20 100 2,398 MW AC 1,297 MW AC Andhra Pradesh 50 3,168 MW DC 1,297 MW D

  11. Slide 11: AGEL – A ~3.7 GW Portfolio

    AGEL – A ~3.7 GW Portfolio Overview of Capacity ( MW) Diversified high quality off-takers Punjab NTPC/SECI 56.3%, 2080 MW 100 Uttar Pradesh 50 150 Rajasthan Tamil 250 20 17.5%, 648 MW Nadu Gujarat Madhya Pradesh 1,385 48 12 Karnataka 7.3%, 270 Mw Others 18.9%, 297 Mw 100 Maharashtra 20 100 3695 MW A

  12. Slide 12: AGEL – Management

    AGEL – Management Sponsorship Gautam Adani Rajesh Adani Founder & Chairman Founder & Director Adani Group Adani Group AGEL – Access to Group Capabilities  Capital - Strong sponsor (promoter) support  Long standing relationship with the procurers  Leadership in Infrastructure Sector  Project Exec

  13. Slide 13: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 13

  14. Slide 14: India – Renewable Energy Sector

    India – Renewable Energy Sector India has significant headroom for power consumption growth Renewables’ overall share in power capacity remains low Nuclear, 2.0% Per capita power consumption 2015(KWh) Hydro, 13.3% US: ~12x India 12,001 China: ~4x India Renewable, World: ~3x India 19.2% 6,460 6,182 3

  15. Slide 15: India – Renewable Energy Sector: Solar Advantage

    India – Renewable Energy Sector India #3 on EY Global Renewable Energy Ranking India – Solar Advantage Solar Irradiation 2500 2000 1500 1000 1 500 2 3 0 USA (California) MENA Australia Mexico China India Germany Average Solar Irradiation (GHI – kWh/m2/Year)2  Grid Parity  Proximity to load centers

  16. Slide 16: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 16 Page 22 16

  17. Slide 17: India – Regulatory Framework for Power Sector

    India – Regulatory Framework for Power Sector Pre 1956 To 1991 To 2003  Electricity Supply Act 1948  Industrial policy resolution 1956  Electricity Act 2003  State Electricity Boards “SEB”  Power sector under state control  National Tariff Policy 2006 Ministry of (conventional) Power (MoP) / M

  18. Slide 18: India – Regulatory Framework for Power Sector

    India – Regulatory Framework for Power Sector CERC and MERC have a Long Standing History of Maintaining and Defining Tariffs  CERC and state regulatory body (e.g., MERC) determines:  Return on Assets (ROA); and  The framework for Operations & Maintenance costs  Built in credit support mechanism

  19. Slide 19: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 19 Page 22 19

  20. Slide 20: India – Renewables Sector Attributes

    India – Renewables Sector Attributes India’s Renewable Roadmap 2018 2024 Solar ~27GW 25% CAGR 106 GW ~100 58 Billion in Wind ~36 GW 8.5% CAGR GW investments  Declining project cost driven by falling equipment prices Development reasons  Enhanced design driving significantly high PLFs / generation

  21. Slide 21: India – Renewables Sector Attributes

    India – Renewables Sector Attributes Favorable confluence of Opportunity & Policy India – achieves grid parity CERC APPC 3.50 INR/KwH High Irradiation Potential of Budget & Wind 750 GW of 3.30 3.15 capacity solar 2.68 2.44 2.48 Stable & Supported by Feb-17 Apr-17 May-17 Sep-17 Dec-17 100GW Capacity

  22. Slide 22: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 22

  23. Slide 23: AGEL Majority Owned by Adani – A Leading Infrastructure Investor

    AGEL Majority Owned by Adani – A Leading Infrastructure Investor A) Strong Sponsor – Leadership in infrastructure sector  Largest private commercial port (APSEZ)  Largest thermal IPP (APL)  Largest Private sector transmission company (ATL)  Largest imported fuel (coal) trader (AEL) B) Strong Spo

  24. Slide 24: AGEL – An Integrated Business Model

    AGEL – An Integrated Business Model AGEL – develops owns operates and manages utility scale solar & wind power plants Post Origination Development Construction Operations Operations Phase O&M  Opportunity  Pipeline  EPC & Funding  Operation  Capital management  Analysis &  Site acquisition 

  25. Slide 25: AGEL – An Integrated Business Model

    AGEL – An Integrated Business Model AGEL – Typical project structure AGEL 1. Design & Construction Dispatch Evacuation agreement & access 2. O&M Agreement 100% Equity (To meet all affiliate Interest SLDC/RLDC/NLDC relationship tests) and/or relevant DISCOM Project Debt Project SPV Project Lenders Sa

  26. Slide 26: AGEL – Punjab 100 MW Case Study

    AGEL – An Integrated Business Model – Punjab 100 MW Case Study AGEL Punjab – Project Development Origination Design Sourcing Execution O&M Solar Plant design &  Real time Site selection irradiation sourcing monitoring  Value  SolarGIS  Sites with strong  Efficient plant engineering database irr

  27. Slide 27: AGEL – Punjab 100 MW Case Study: Performance

    AGEL – An Integrated Business Model – Punjab 100 MW Case Study AGEL Punjab – Project Development GTI Solar % Achievement GTI Actual GIS P50 (Actual / 101.6% Solar irradiation (kWh/m2/year) 1,935 (kWh/m2/year) 1,965 Target) Stable Capacity Utilisation Factor (“CUF”) Grid Availability Plant Availabili

  28. Slide 28: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 28 28

  29. Slide 29: Robust Operating Performance

    Robust Operating Performance Average Capacity (MW AC) CUF (%) (AC Basis) 1,898 Solar Wind 1,744 Solar Wind 2 9 .81% 30.96% 2 1.14% 2 2 .35% 18.55% 18.2 5% 858 2 1.68% 648 648 668 2 0.08% 19 .69% 16 .36% 13.87% 13.53% 58 58 58 58 58 58 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q1 FY18 Q2 FY18 Q

  30. Slide 30: 1.9 GW Solar Portfolio Operational Bridge – Actual to Technical Estimates

    1.9 GW Solar Portfolio Operational Bridge – Actual to Technical Estimates* Estimated Quarterly CUF for 1.9 GWAC Portfolio 28.64% 25.79% 24.22% 21.56% Q1 FY18-19 Q2 FY18-19 Q3 FY18-19 Q4 FY18-19 P50 estimates for the said 1.9 GW AC solar assets achieved for Sep 18 and P75 achieved for Q2 FY19 on conn

  31. Slide 31: Resilient Financial Performance

    Resilient Financial Performance Revenue (US$mm) EBIDTA (US$mm)1 & Margin (%)2 93% 90% 87% 80% 104.1 134.6 60.1 65.6 56.1 74.9 70.5 62.6 FY17 FY18 Q1 FY19 Q2 FY19 FY17 FY18 Q1 FY19 Q2 FY19 Cash Profit (US$mm)3 Improving Receivable Days (Months)4 45.1 44.7 8 7 34.0 21.8 4 3 FY17 FY18 Q1 FY19 Q2 FY19 F

  32. Slide 32: Debt Mix of AGEL

    Debt Mix of AGEL Rs. In crore Particulars Mar-18 Sep-18 Gross Debt 9,280 11,118 Capital Creditors 2,410 971 Total Liabilities A 11,690 12,089 Cash and Cash Equivalents B 667 577 Capital work in progress C 1,725 737 Net Liabilities (A-B-C) D 9,298 10,775 Net Liabilities to EBIDTA <5.5x on Sep 2018 Ne

  33. Slide 33: Who we are

    1 Who we are 2 Re newables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 31 33

  34. Slide 34: AGEL – Growth Story Outpacing the Overall National Growth

    AGEL – Growth Story Outpacing the Overall National Growth Long term demand growth trajectory (in MW) 1 ~17 GW of live bids in near future Live Bids Off Takers Hybrid Solar, Other, 1140 , 2500 2670 Wind, 1200 2,98,774 2,25,751 SECI, 1,64,066 15230 1,35,453 Manufacturing linked Gen, 10000 2012-13 2017

  35. Slide 35: AGEL – Proven Execution & Capital Management Propels Equity Returns

    AGEL – Proven Execution & Capital Management Propels Equity Returns AGEL – growth accretive equity returns Execution – time & Capital Management & budget innovation Account for ~85% of value D&C Portfolio NPV of Life cycle Refinance Residual Value to Margin O&M Utility optimisatio uplift value Equit

  36. Slide 36: AGEL – Growth Strategy

    AGEL – Growth Strategy Expected Wind growth is supported by Largest single location wind/solar project of 1.2 GW being developed at Kutch District in village Ratadiya, Gujarat with 220 KV wind substation at Kutch (Gujarat) is under construction for a capacity of handling 1.2 GW power injection. 41 w

  37. Slide 37: AGEL – Ratadiya, Kutch, Gujarat Sub-station (site images)

    AGEL – Ratadiya, Kutch, Gujarat Sub-station (site images) Ideally positioned to win a significant portion of live and future bids 37

  38. Slide 38: AGEL – A Compelling Investment Opportunity

    AGEL – A Compelling Investment Opportunity Part of Adani’s India infrastructure investment – market leader in ports, T&D, Infrastructure Thermal power and now AGEL lineage Consistent track record of creating investor value Known & tested Stable regulations applied consistently (re affirmed by Suprem

  39. Slide 39: Thank You

    Thank You 39

  40. Slide 40: Appendix

    APPENDIX 40

  41. Slide 41: Payment Security Mechanism under PPA with SECI

    Payment Security Mechanism under PPA with SECI Covering 3 months payment. Sources of the said fund shall be money received from:  Encashment of BGs, Payment Security  Interest earned on this fund, Funds  Incentives for early payment  The grants from Government/NCEF,  Coal Cess earned by SECI, 

  42. Slide 42: AGEL – Holding Structure

    AGEL – Holding Structure PDPL – Prayatna Developers Pvt Ltd; AGETNL – Adani Green Energy (Tamil Nadu) Ltd; RREL – Ramnad Renewable Energy Ltd; RSPL – Ramnad Solar Power Ltd, KREL - Kamuthi Renewable Energy Ltd; KSPL - Kamuthi Solar Power Ltd; AGE(UP)L - Adani Green Energy (UP) Ltd; PSEPL – Parampujy

  43. Slide 43: Summary of Projects - Solar

    Summary of Projects - Solar Adani Green Kamuthi Ramnad Prayatna Prayatna Prayatna Prayatna Prayatna Name of Project Ramnad Solar Energy Kamuthi Solar Renewable Renewable Developers Developers Developers Developers Developers SPV(s) Power Limited (Tamilnadu) Power Limited Energy Limited Energy Limite

  44. Slide 44: Summary of Projects – Solar (contd)

    Summary of Projects – Solar (contd) Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Parampujya Solar Kodangal Solar Name of Project Energy Private Energy Private Energy Private Energy Private Energy Private Energ

  45. Slide 45: Summary of Projects – Solar (contd)

    Summary of Projects – Solar (contd) Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Adani Green Name of Energy (UP) Energy (UP) Energy (UP) Energy (UP) Energy (UP) Energy (UP) Energy (UP) Energy (UP) Ener

  46. Slide 46: Summary of Projects – Solar (contd)

    Summary of Projects – Solar (contd) Wardha Solar Wardha Solar Wardha Solar Wardha Solar Wardha Solar Wardha Solar Wardha Solar Wardha Solar Name of Project (Maharashtra) Private (Maharashtra) Private (Maharashtra) Private (Maharashtra) Private (Maharashtra) Private (Maharashtra) Private (Maharashtra

  47. Slide 47: Summary of Projects – Solar (contd.)

    Summary of Projects – Solar (contd.) The Company has recently won the following Solar project through bidding process: Name of Project Adani Renewable Energy Kilaj Solar (Maharashtra) Kilaj Solar (Maharashtra) Pvt Gaya Solar (Bihar) Pvt. Ltd. SPV(s) (RJ) Ltd Pvt Ltd Ltd UP Gujarat Project Location R

  48. Slide 48: Summary of Projects - Wind

    Summary of Projects - Wind Name of Project Adani Green Energy Adani Wind Energy (Gujarat) Adani Wind Energy (Gujarat) Adani Green Energy (MP) Wind One Renergy Wind Three Renergy Adani Green Energy SPV(s) Limited Private Limited Private Limited Limited Pvt Ltd Pvt Ltd (MP) Limited Village: Lahori, Di

  49. Slide 49: Summary of Projects – Wind (contd)

    Summary of Projects – Wind (contd) Adani Renewable Energy Adani Green Energy (MP) Adani Renewable Energy Adani Renewable Energy Adani Wind Energy (GJ) Name of Project SPV(s) Acquiring Entity (KA) Limited Limited (GJ) Limited (TN) Limited Limited Project Location Village: Dayapar, Gujarat Village: Mu

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