Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Q2 FY22 Earnings Presentation
39 slides from Adani Energy Solutions's earnings presentation, October 2021
Slide 1: Adani Transmission Limited Q2FY22 Results Presentation
Adani Transmission Limited Q2FY22 Results Presentation October 2021
Slide 2: Contents
CONTENTS 04-07 Adani Group and ATL 04 Operational Highlights – 09-12 09 09 Q2FY22 Financial Highlights – 14-17 Q2FY22 14 Balance Sheet and 19-21 Cash flow update 19 23-28 ESG 23 30-32 ATL Profile 30 Credit Rating and Asset 34-37 Portfolio 34
Slide 3: Adani Group
Transmission
Slide 4: Adani: A world class infrastructure & utility portfolio
Adani: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 100% 75% • Marked shift from B2B to 63.8% 60.2% B2C businesses – APSEZ ATL AGEL NQXT2 • ATGL – Gas distribution Port & Logistics T&D Renewables network to serve key 100% 75%
Slide 5: Adani: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Transmission Network (ckm) Port Cargo Throughput (MMT) Renewable Capacity (GW) CGD7 (GAs8 covered) 45% 20% 132% 12% 1.5x 3x 30% 3x 5x 7% 4% 25% Industry ATL Industry APSEZ Industry Adani AGEL Industry AGL 2016 320,000 ckm
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence planning str
Slide 7: A platform well-positioned to leverage growth opportunities in T&D business
ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Balanced pool mix Transmission Network of Transmission - Presence in 12 states Transmission (FY21): Development with 28 transmission SPVs 18,336 ckm(1) 51% of EBITDA - Central pool B
Slide 8: Operational Highlights – Q2FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Operational Highlights – Q2FY22 14
Slide 9: Executive Summary – Operational and Financial Performance in Q2FY22
ATL: Executive Summary – Operational and Financial Performance in Q2FY22 Operational Update: • Other Updates: – Added 486 ckm to operational network reaching to 18,336 ckm – FBTL and BKTL projects got – Transmission Lines operating at greater than 99.35% system availability commissioned during the q
Slide 10: Transmission Utility – Key Operating Metrics Q2FY22 YoY
ATL: Transmission Utility – Key Operating Metrics Q2FY22 YoY Transmission Network length(2) (ckm) Power Transformation Capacity(2) (MVA) 33,141 18,336 Transformation Significant network 27,280 14,837 capacity has increased addition (+24% yoy) on 21% during the period account of Alipurduar, due to ad
Slide 11: Distribution Utility (AEML) – Key Operating Metrics Q2FY22 YoY
ATL: Distribution Utility (AEML) – Key Operating Metrics Q2FY22 YoY Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) SAIFI SAIDI CAIDI 99.997% 99.997% 26.99 25.76 Outage Time AEML maintained and Outage more than 99.9% Occurrences supply have improved 4.24 3.92 0.16 0.15 Q
Slide 12: Distribution Utility (AEML) – Key Operating Metrics Q2FY22 YoY
ATL: Distribution Utility (AEML) – Key Operating Metrics Q2FY22 YoY Consumer base (million) Distribution Loss (%) E-payment (% of total collection) % 68.65% 68.48% Dist. Loss not E-payments 3.05 3.06 comparable YoY as remains strong Slight meter reading as increase in 7.64% with greater per guidelin
Slide 13: Financial Highlights – Q2FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Financial Highlights – Q2FY22 14
Slide 14: Consolidated Financial Highlights Q2FY22 YoY
ATL: Consolidated Financial Highlights Q2FY22 YoY (In Rs. Crs) Operational Revenue EBITDA 2479 1289 15.0% 12.5% 2156 1146 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Cash Profit PAT 692 289 2.3% 35.0% 676 214 Q2FY21 Q2FY22 Q2FY21 Q2FY22 14 Note: Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM opti
Slide 15: Segment–wise Financial Highlights Q2FY22 YoY
ATL: Segment–wise Financial Highlights Q2FY22 YoY Operational Revenue Operational EBITDA (In Rs. Crs) 1690 732 1467 637 427 789 363 688 Transmission Distribution Transmission Distribution Q2FY21 Q2FY22 Q2FY21 Q2FY22 EBITDA PAT 771 225 658 185 488 518 64 29 Transmission Distribution Transmission Dist
Slide 16: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY22 YoY
ATL: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY22 YoY (In Rs. Crs) Revenue (ex incentive) up 15.8% supported by revenue Operating EBITDA up 14.8% driven by strong revenue contribution from new line elements 106 73 40 11 (3) (2) (13) (6) (6) 776 732 669 637 Q2 FY22 Newly Contribu
Slide 17: Distribution Utility (AEML) - Revenue and Operating EBITDA Bridge Q2FY22 YoY
ATL: Distribution Utility (AEML) - Revenue and Operating EBITDA Bridge Q2FY22 YoY (In Rs. Crs) Revenue up 15.2% driven by higher energy demand Strong operating EBITDA growth of 17.5% 2 11 223 6 ( 371 ) 31 218 13 ( 14 ) 1,690 427 169 363 1,467 Q2 FY22 Transmission & Other Operating Cross Subsidy Sale
Slide 18: Balance Sheet and Cash flow update
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook 1HFY22- Balance Sheet and Cash flow update 14
Slide 19: EBITDA to Free Cash Flow (1HFY22)
ATL: EBITDA to Free Cash Flow (1HFY22) (In Rs. Crs) Strong cash profit and positive free cash flow for reinvestment 2786 -763 -1,085 -78 -284 860 576 1HFY22 EBITDA Working Capital Interest & Finance Tax expense Cash profit Repayment Cash generation for Changes cost Growth Notes: EBITDA includes regu
Slide 20: Debt Evolution and Key Ratios (1HFY22)
ATL: Debt Evolution and Key Ratios (1HFY22) (In Rs. Crs) Net Debt(1) Net Debt Evolution - YoY Key Ratios Trend 2606 4.7 4.5 4.3 3295 1842 3,090 529 61 363 338 2.6 2.3 2.4 2.0 1.9 1.6 23,663 23,663 1.4 1.4 22,093 1.3 19,658 FY20 FY21 1HFY22 Mar 21 Sep 21 Net Debt to EBITDA Debt Service Coverage Ratio
Slide 21: ATL's Capital Management Program brings diversity and elongated maturity to debt profile
ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile Refinancing risk minimised1 As of As of 12% 31st Mar 16 30th Sept. 21 < 1 Y - 19% < 1 Y - 2% 1 to 5 Y - 69% 1 to 5 Y - 22% 89% > 5 Y - 12% > 5 Y - 76% Consolidated Rs. 237 bn Rs. 85 bn Net Debt FY16 1HFY2
Slide 22: ESG
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ESG 08
Slide 23: Robust ESG Framework
ATL: Robust ESG Framework United Nations GHG Protocol SBTi Global Compact Guiding IR framework Policies Guiding Principles and TCFD CDP disclosure principle reporting Disclosure Standards UN Sustainable GRI Standards Development Goals Policy Structure Focus Areas ESG • Environment Policy UNSDG align
Slide 24: Progressing on Environmental and Climate Commitments
ATL: Progressing on Environmental and Climate Commitments Indicators Progress and Status: YTD FY22 Medium to Long-term Targets Energy Mix & Emission Intensity AEML has tied up a hybrid (Solar +Wind) 700 RE share in power procurement 30% by FY23 60% by FY27 MW PPA The target for GHG emissions reducti
Slide 25: Social Philosophy
ATL: Social Philosophy Our social Initiatives are mapped to UNSDG 2030 • Physical infrastructure and e-learning platform in rural areas Access to Education • Educational Kits (2830 students benefited) & School Uniforms Tiroda, Dahanu and to Anganwadi children (5780 students benefited) 1. No Poverty
Slide 26: Governance Philosophy
ATL: Governance Philosophy Policies Committees Assurance • Corporate Responsibility Committee • Environment Policy covered in BR Policy • Risk Management Committee Corporate Responsibility Committee • Corporate Social Responsibility Policy • Corporate Social Responsibility Committee • Occupational H
Slide 27: Revised Board of Charter Implemented
ATL: Revised Board of Charter Implemented ATL’s Audit Committee and Nomination and Remuneration Committee comprises of 100% Independent Directors Existing Board Committee composition changed: Committee Current Proposed CSR Committee 33% Independent Directors Atleast 75% Independent Directors Stakeho
Slide 28: Enhanced Safety Culture
ATL: Enhanced Safety Culture Safety Initiatives During 1HFY22 Safety Performance in Q2FY22 • 81,959 man-hours of safety training and awareness during 1HFY22 Safety Parameters Q2FY22 Q2FY21 • For enhanced safety through technology inclusion, tested usage of smart Near Miss Reporting 1018 126 wearable
Slide 29: Annexure
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Annexure (ATL profile, Credit Rating, Asset Portfolio) 22
Slide 30: ATL at a Glance
ATL at a Glance Contracted Assets in ROA Assets in Transmission and Distribution Business Transmission Business 100%1 25.1% 100% 100% 74.9% TBCB(2) Assets Transmission HVDC AEML Assets Transmission line 13 Operating 9 Under-construction 4 Operating Distribution business with 3 mn+ TBCB(2) assets TBC
Slide 31: Transmission business at a Glance
ATL: Transmission business at a Glance TBCB – Contracted Transmission Assets with Fixed Tariff (Sec. 63) ROA - Transmission Assets (Sec. 62) 35 yrs + 30 yrs of 35 yrs + 30 yrs remaining life of Network Pool Asset Life Asset Life Counterparty remaining life asset Function of line Counterparty Network
Slide 32: Distribution (AEML) business at a Glance
ATL: Distribution (AEML) business at a Glance Consumer-facing Integrated Utility (AEML) Key Characteristics HVDC Transmission Asset (Mumbai) Consumer Counterparty Consumers 3.04 million base Return on Assets Fixed Type of Regulated Perpetual (ROA -Section 62) Return Asset Life Asset Asset (Sec. 62)
Slide 33: Credit Ratings, Outlook and Asset Portfolio
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission FutureBond Credit Ratings, Outlook and Asset Portfolio 14
Slide 34: ATL and AEML Credit Ratings
ATL and AEML Credit Ratings International – ATL Obligor Group International- AEML US$ 300 mn Rating Agency Facility Rating/Outlook Rating Agency Facility Rating/Outlook Fitch Dollar Bond BBB-/Negative Fitch Dollar Bond BBB-/Negative S&P Dollar Bond BBB-/Negative Moody’s Dollar Bond Baa3/Stable Moody
Slide 35: ATL and AEML Bond Portfolio
ATL and AEML Bond Portfolio Highlights Obligor 1 – US$ 500 mn Obligor 2 – US$ 500 mn USPP – US$ 400 mn AEML – US$1 bn AEML – US$ 300 mn STL, ATRL, CWRTL, RRWTL, Assets ATIL MEGPTCL AEML AEML, PDSL PPP-8,9,10 FY21 Operational 1,725 610 1,659 1,659 EBITDA (Rs. Crs) Tenor 10 year 16.5 year 30 year 10 y
Slide 36: ATL's Evolution and Operational Asset Portfolio as of 1HFY22
ATL’s Evolution and Operational Asset Portfolio as of 1HFY22 Adani Transmission Limited ATL’s Transmission Network (ckt km) has grown 3.4x and expanded in Distribution business 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATL’s “Grid-to-Switch” Integrated Platform ATIL MEGPTC
Slide 37: ATL's Under-construction Asset Portfolio as of 1HFY22
ATL‘s Under-construction Asset Portfolio as of 1HFY22 Adani Transmission Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Obra-C WRSS – Lakadia MP Kharghar NKTL Jam Kham- HVDC# GTL Banas- WKTL Badaun XXI (A) baliya Package II - Vikhroli kantha North Ghatampur Obra Lakadia - Lakadia- Jam Kha
Slide 38: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given solely fo
Slide 39: Thank You
adani Transmission adani Transmission Thank You -¢