Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Debt Investor Presentation (September 2020)
48 slides from Adani Green Energy's debt investor presentation, September 2020
Slide 1: Adani Green Energy Limited Debt Presentation September 2020
Renewables Adani Green Energy Limited DEBT PRESENTATION September 2020 1
Slide 2: Contents
CONTENTS Adani Group AGEL - Portfolio and 04-07 09-21 Growth Strategy AGEL: COVID–19 Update 09 Adani: World class infrastructure AGEL : Leading Renewable Player AGEL- Replicating Adani Group Case Study: 570 MW RG2 Bond & utility portfolio 04 in India… 10 Business Model: O&M Philosophy 14 Issuance 18
Slide 3: Adani Group
Renewables 3 Adani Group Amongst the Largest Infrastructure & Utility Portfolio of the World
Slide 4: Adani Group: A world class infrastructure & utility portfolio
Adani Group: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.5% 100% 75% 75% Marked shift from B2B to B2C businesses - APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL - Gas distribution network to serve key 100%
Slide 5: Adani Group: Repeatable, robust & proven model of infrastructure development
Adani Group: Repeatable, robust & proven model of infrastructure development Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence plann
Slide 6: Adani Group: Repeatable, robust business model applied to drive value
Adani Group: Repeatable, robust business model applied to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Commercial Port Line in Asia Solar Po
Slide 7: AGEL: Robust Business Model with Rapid Growth & Predictable Returns
AGEL : Robust Business Model with Rapid Growth & Predictable Returns.. Total Portfolio Diversified Portfolio ESG 13,9901MW 11 states Development 74% solar; 12% wind; 14% wind-solar hybrid Pure-play Solar & Wind Assets (2,595 MW Operational 11,395 MW Pipeline) 100% Contracted Capacity Counterparty pr
Slide 8: Adani Green Energy Limited Portfolio and Growth Strategy
Renewables 8 Adani Green Energy Limited Portfolio Growth Strategy
Slide 9: AGEL: COVID-19 Update
AGEL: COVID–19 Update Operations Under-construction Access to Capital ▪ Electricity Generation has been ▪ MNRE has given all renewable ▪ Concluded Adani-TOTAL JV specified as an Essential projects in the pipeline a blanket and received investment of Service amid Lockdown extension of 5 months from I
Slide 10: AGEL: Leading Renewable Player in India
AGEL: Leading Renewable Player in India… Project Pipeline 11,395 MW Total 50% Adani 50% Operational Solar Operational Wind Adani TOTAL JV Co 50 MW Assets 397 MW RG 1 RG 2 TN SPVs Solar Wind Hybrid 930 MW 570 MW 648 MW 8,425 MW 1,280 MW 1,690 MW Presence across Largest Listed Resource and 11 resource
Slide 11: AGEL: Large, Geographically Diversified Portfolio
AGEL: Large, Geographically Diversified Portfolio 13,990 MW # Portfolio | 2,595 MW operational Average AGEL tariff below APPC* APPC @ 3.60/kWh Operational Under Implementation Wind Solar 3.2 2.5 2.4 2.7 2.3 3.24 Solar-Wind Hybrid Apr'17 Dec'17 Jan'18 Aug'18 Jun'20 AGEL 100 Portfolio Avg. 175 100 Low
Slide 12: AGEL: Locked-in Growth with improving counterparty mix
AGEL: Locked-in Growth with improving counterparty mix Strong Execution Track Record… Operational (MW) UC (MW) 25,000 # 13,990 25,000 5,990 11,395 4,560 2,000 2,570 3,445 798 612 2,590 485 1,192 808 1,958 1,970 2,595 313 2,545 FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 21 FY 25E …Improving Counterparty mix
Slide 13: Replicating Adani Group Business Model: Development Philosophy
1 AGEL- Replicating Adani Group Business Model: Development Philosophy Resource Rich Areas Evacuation Infrastructure Economies of Scale Land Acquisition 12,000 acres Clear visibility GW Scale Development Of land already acquired on evacuation infrastructure within time and budget In-house design tea
Slide 14: Replicating Adani Group Business Model: O&M Philosophy
2 AGEL- Replicating Adani Group Business Model: O&M Philosophy Centered around its Energy Network Operation Centre (ENOC), allowing for efficient and cost-effective operational performance Predictive Analytics Centralized Monitoring led Improvements Cost-Efficiency • ENOC allows engineers to perform
Slide 15: Replicating Adani Group Business Model: Capital Management Philosophy
3 AGEL- Replicating Adani Group Business Model: Capital Management Philosophy Maximize FCFE → Cash reinvested for growth → Multiply FCFE Project Construction Stabilization Post-Stabilization HoldCo. Financing Strategic Equity Sale Financing Phase Phase Ensure senior debt availability HoldCo financin
Slide 16: Pillars for Capital Management Plan
Pillars for Capital Management Plan Risk Mitigation Strategic Stability Liquidity Interest Forex Structural Liquidity Event Risk Rate Risk Risk Protections Counter-party Resource • Onboarding O & M Risk Strategic Marquee Risk Risk Investor by selling Foreign Equity Stake Tenor in Fixed • 65% of EBIT
Slide 17: Case Study: 930 MW RG1 Bond Issuance
Case Study: 930 MW RG1 Bond Issuance Long-term Global funds matching project life, with no Forex Risk Restricted Group-1 comprises three SPVs, having total operational capacity of 930MWac which was created for USD 500.0 mn Green Bond issuance in May 2019. Project Cost: INR 5,846 Cr BB+ rated USD 500
Slide 18: Case Study: 570 MW RG2 Bond Issuance
Case Study: 570 MW RG2 Bond Issuance Elimination of Liquidity Risk through Capital Management Restricted Group-2 comprises three SPVs, having total operational capacity of 570MWac which was created for USD 362.5 mn Green Bond issuance in October 2019. This was First Investment Grade USD Bond deal ou
Slide 19: Case Study: Strategic Sale to TOTAL SA
Case Study: Strategic Sale to TOTAL SA - De-risking through Capital Management Value Creation ▪ On-boarded strategic marquee investor TOTAL SA 50% 50% AGEL ▪ TOTAL SA acquired 50% SPV level stake ▪ Received Investment proceeds of INR 3707 Cr TOTAL JV Co Capital De-risking ▪ Proceeds proposed to be u
Slide 20: Capital Management: Journey so far & Next Steps
AGEL- Capital Management: Journey so far & Next Steps 100% operational Solar Portfolio Elongated maturity & Reduced Transparent information refinanced Cost disclosures ▪ 648 MW TN: INR 3100 Cr (~$443mn) ▪ Increased from 7.5 years to 10.9 years ▪ A detailed compliance certificate is provided to inves
Slide 21: Global Benchmarking: Adani Energy Portfolio vs. Global peers
Global Benchmarking: Adani Energy Portfolio vs. Global peers AGEL fares in line or better on various metrics with global peers Renewable Players - Capacity in GW1 EBITDA margin %2 –FY20 89% 14.40 13.99 53% 51% 48% 8.10 42% 4.86 2.97 22% Peer 3 Peer 4 AGEL Peer 2 Peer 1 AGEL Peer 2 Peer 3 Peer 1 Peer
Slide 22: AGEL - ESG
Renewables 22 AGEL - ESG
Slide 23: AGEL: ESG Philosophy
AGEL: ESG Philosophy • Committed to Science Based Targets initiative (SBTi) • Supporter of Task Force on Climate-related Financial Disclosures (TCFD) • Signatory to UN Global Compact (UNGC) Environmental • Disclosure as per CDP from Q2 FY21 onwards • Water/ Waste water management through rain water
Slide 24: AGEL: ESG performance for FY20
AGEL: ESG performance for FY20 Efficiency Resource Management Waste Management Wind-Solar Hybrid: Matching Unproductive land used for 4.0 million ton CO2 emission load curve plants reduced in FY20 Remote Operating Nerve Proprietary technologies to Design to significantly Environmental Centre save wa
Slide 25: Environment awareness and initiatives
Environment awareness and initiatives Focus on following environment related factors which matter to the business model Climate Awareness Offsetting of Carbon Emissions Resource Management Waste Management Increased efficiency Resource Management Waste Management • Matching the load curve through •
Slide 26: Technology intervention enabling effective management of resource
Technology intervention enabling effective management of resource Reduction in water usage for module cleaning Efficiency in land usage Pioneer in adoption of latest technologies for module cleaning Sites identified for setting up solar / wind projects process on waste purposes land Due to these lat
Slide 27: AGEL's Governance: Journey so far and future glide path
AGEL’s Governance: Journey so far and future glide path Charted a glide path to internalise global best practices of governance by September 2021 JOURNEY SO FAR TARGET BY SEP 2021 Bankruptcy Remote Structure for RG1 and RG2 assets Internal Bankruptcy remote structure to be implemented for all SPVs A
Slide 28: AGEL: A Compelling Investment Case
AGEL: A Compelling Investment Case Stable & predictable cash- ▪ Predictable cash flow with 100% contracted business flows ▪ Long term PPA’s (~25 years); ~79% sovereign counterparties ▪ High and predictable generation World-class O&M practice ▪ Lower cost through preventive maintenance focus ▪ AGEL w
Slide 29: Appendix
A 29 Appendix
Slide 30: Appendix: Project Details, Financials, Strategic Priorities
Adani Green Energy Limited Project Details Appendix 30 Financials Strategic Priorities Environment & Safety Focus
Slide 31: AGEL: Asset Level Details - Operational
AGEL: Asset Level Details - Operational Solar Wind Projects Hybrid SPV Project Name / Location Type Contracted Capacity (AC) Capacity (DC) Tariff COD Counterparty Name PPA Term AGETNL Solar 216 260 7.01 Mar-16 TANGEDCO 25 RSPL Solar 72 86 7.01 Feb-16 TANGEDCO 25 AGETNL KREL Solar 72 86 5.761 Mar-16
Slide 32: Asset Level Details - Under Construction
Asset Level Details - Under Construction Solar Wind Projects Hybrid SPV Project Name / Location Type Contracted Capacity (AC) Capacity (DC) Tariff COD Counterparty Name PPA Term AGEONEL Gujarat Solar 150 210 2.67 Nov-202 GUVNL 25 GSBPL Gujarat Solar 100 140 2.44 Aug-202 GUVNL 25 Kilaj SMPL – UPNEDA
Slide 33: AGEL: Consolidated Financial Performance for Q1FY21
AGEL: Consolidated Financial Performance for Q1FY21 Particulars Q1 FY21 Q1 FY20 % Change FY20 FY19 Total Income 878 675 30% 2,629 2,131 Revenue from Power Supply 609 551 10% 2,065 1,913 EBITDA from Power Supply 555 495 12% 1,837 1,723 EBITDA from Power Supply (%) 91% 90% 89% 90% PAT 22 (97) (68) (47
Slide 34: AGEL's Strategic Priorities
AGEL’s Strategic Priorities Growth & Optimal Project Operational Stable ESG Returns Capital Execution Excellence Cash Flows Focus Management Vision to be one Leverage Build on Drive high and Predictable Strong focus on of the largest internal accruals infrastructure predictable cash flow with enviro
Slide 35: Environment & Safety Focus across Project Life-Cycle
Environment & Safety Focus across Project Life-Cycle Benefit area Environment Community Land Acquisition Engineering Procurement Construction Operation Priority to set up Land resource Policy and signed Auxiliary Power From water intensive Solar and Wind plant optimization has led contracts for Tran
Slide 36: Appendix: Industry Outlook, Regulatory Landscape
Appendix 36 Adani Green Energy Limited Industry Outlook Regulatory Landscape
Slide 37: Attractive Outlook of Indian Renewable Industry
Attractive Outlook of Indian Renewable Industry Low Per Capita Power Consumption Untapped Solar and Wind Resources Low Generation Share Per capita power consumption (KWh) Potential Installed capacity in GW (Apr-2019) 3.0% 10.0% 79.0% US: ~11.3x India 749.0 12,984 8.0% 10,059 Expected to increase at
Slide 38: Operating in a robust and tested regulatory framework over 20 years
Operating in a robust and tested regulatory framework over 20 years Ministry of Power (MOP) Empowered Committee CEA Tariff Determination Methodology Participants/Statutory bodies under Electricity Act, 2003 Section 62 (RoA) Section 63 (TBCB) To regulate and determine/adopt the tariff and to grant li
Slide 39: Regulatory Bodies across energy landscape in India
Regulatory Bodies across energy landscape in India Ministry Ministry of (conventional) Power (MoP) / Ministry of New & Renewable Energy (MNRE) Central Electricity Authority of India (CEA) Advisory Advisory arm of MoP on matters relating to the National Electricity Policy and formulating plans for th
Slide 40: Appendix: RG1 & RG2 Numbers, Bond Prices, Credit Portfolio
Appendix 40 RG1 & RG2: Key Operational & Financial Numbers RG1 & RG2: Bond Price Movement Adani Group – Credit Portfolio
Slide 41: RG-1 - 930 MW Solar Operational Update
RG-1 -930 MW Solar Operational Update Key Highlights: Solar RG-1: 30% P75@ Key Highlights RG 1 25.18% -0.46% -0.36% -1.20% • Near P90 CUF of 23.17% for FY’20, would have been higher than P90@ 25% -0.12% 0.14% 23.17% P75 but for following reasons: 24.30% 20% - radiation shortfall as a result of exten
Slide 42: RG-1 - Key Financial Numbers
RG-1 - Key Financial Numbers Particulars (INR Cr.) FY’20 FY19 Revenue from Power supply 882 836 Total Income 951 881 EBITDA including Other income 830 768 Gross Debt 4779 3546 Net Debt 4141 3789 EBITDA = Revenue from Operation – Cost of Material consumed - Admin and General Expense including Employe
Slide 43: RG-2 - 570 MW Solar Operational Update
RG-2 - 570 MW Solar Operational Update P75@ Key Highlights RG 2 P90@ 30% 27.09% -0.17% -0.81% -0.78% -0.10% 0.51% 25.74% • Near P90 CUF of 25.74% for FY’20, would have been higher than 26.15% 25% P75, but for following reasons: 20% - radiation shortfall as a result of extended monsoon in Indian sub-
Slide 44: RG-2 - Key Financial Numbers
RG-2 - Key Financial Numbers Particulars INR Cr) FY ’20 FY ’19 Revenue from Power supply (Rs. Cr.) 416 351 Total Income (Rs. Cr.) 428 361 EBITDA including Other income (Rs. Cr.) 391 325 Gross Debt (Rs. Cr.) 2,602 1,436 Net Debt (Rs. Cr.) 2,192 1,319 EBITDA = Revenue from Operation – Cost of Material
Slide 45: AGEL: RG1 & RG2 Bond Price Movement
AGEL: RG1 & RG2 Bond Price Movement : 16-Sep-19 to 15-Sep20 45
Slide 46: Adani Group: World-Class credit portfolio attracting global investors
Adani Group: World-Class credit portfolio attracting global investors Issue Size Company Issue Date Coupon Current Yield# Maturity Date Debt Structure Rating (USD Mn.) Renewables BBB- (S&P)/ BBB- (Fitch) / Oct,19 362.5 4.625 4.78% 15-Oct-2039 Amortizing Ba1 (Moody's) AGEL Jun,19 500 6.25% 4.72% 10-D
Slide 47: Disclaimer
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 growth prospects, and fut
Slide 48: Thank You
Renewables 48 Thank You
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