Azure Power Global Limited · OTC:AZREF

Azure Power Global — Q4 FY2021 Earnings Presentation

34 slides from Azure Power Global's earnings presentation, Jun 16, 2021

  1. Slide 1: Fiscal Fourth Quarter 2021 Earnings Presentation

    ~7 GW* Pan India Portfolio of Solar Assets India’s First Private Grid Connected MW Solar Plant Issued India’s First Solar Green Bond Fiscal Fourth Quarter 2021 Ended March 31, 2021 Earnings Presentation June 16, 2021 *~7 GWs include 4 GWs for which LOA has been received but 1|Copyright PPA has not ©

  2. Slide 2: Disclaimer

    Disclaimer Forward-Looking Statements This information contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, op

  3. Slide 3: Q4 FY 2021 Key Developments

    Q4 FY 2021 Key Developments 3|Copyright © 2021 Azure Power |www.azurepower.com

  4. Slide 4: Key Highlights of Recent Developments

    Key Highlights of Recent Developments Second Largest Solar Operational (2) Under Construction (2) Awarded(3) Portfolio in India (1) 2,002 MWs AC 953 MWs AC 4,000 MWs 6,955 MWs (2,574 MWs DC) • ESG Highlights: • Covid preparedness and related CSR activities • AA ESG rating from MSCI, top quartile of

  5. Slide 5: Projects Under Construction Update

    Projects Under Construction Update Assam Rajasthan Rajasthan 6 Rajasthan 8 Rajasthan 9 Assam - 90 MWs 600 MWs 300 MWs 300 MWs Revised 300MW done 37.5• MWs Q2 CY’21 Commissioned; Q4(1) Q1 CY22 (1) 27.5 MWs in 4Q and 25 MWs 1Q’ CY22(2) PPA COD 300 MW – Q3(1) Financing Document Completed 100% 100% Sign

  6. Slide 6: ESG Highlights

    ESG Highlights FY’21 Highlights ◼ ISO 45001 certification Achieved ◼ 555 tons of broken damaged modules disposed; historical environmental liability mitigated ◼ Training on “Environment Aspect & Impact” given to ISO 14001 SPOCs Environment ◼ World environment day celebrated with plantation of 1500+

  7. Slide 7: Industry and Regulatory Update

    Industry and Regulatory Update • New tenders released & allocated in FY’21 significantly below the level in • Initiation of investigation of Anti-dumping duty. DGTR is initiating Anti-dumping FY’20. Like in previous quarter, no new Solar ISTS tenders released by SECI duty (ADD) investigation of Sola

  8. Slide 8: Q4 FY 2021 Overview

    Q4 FY 2021 Overview 8|Copyright © 2021 Azure Power |www.azurepower.com

  9. Slide 9: Q4'21 Key Performance Metrics

    Q4’21 Key Performance Metrics 1,990 MW* Operating 6,955 MW* Operating, US$ 0.39m Project US$ 58.4m Q4 Revenue 20% increase(1) Contracted & Cost/MW (DC) 16% increase Awarded(2) 19% decrease(3) • 325 MW (496 MW DC) commissioned • 1,990 MW Operating • DC cost per MW US$ 0.49m for FY 20 • US$ 50.2 milli

  10. Slide 10: Review of Q4 FY'21 Results

    Review of Q4 FY’21 Results % Change Reported Adjusted Reported Reported 4Q FY’21 After Adjustments* adjusted Q4 FY’21 (in million) 4Q FY’20 4Q FY’20 4Q FY’21 4Q FY’21 Adjustments Comments US$ vs adjusted Q4 INR INR INR US$ US$ FY’20 Primarily driven by projects commissioned during FY’21 ~US$ 5m and

  11. Slide 11: Improved Overhead and DSO

    Improved Overhead and DSO G&A Excluding Stock Compensation & Management Transition Accounts Receivable DSO Millions Days $26 Excluding SAR, G&A increased by 8% for 150 $24 4Q 21(1) $22 140 $20 $18 130 $16 $14 120 $12 $10 110 DSO $8 $6 100 $4 $2 90 Average time to $0 bill combined 1Q'20 2Q'20 3Q'20 4

  12. Slide 12: Operating Assets Review: EBITDA, CFe, & Leverage

    Operating Assets Review: EBITDA, CFe, & Leverage 55% growth in CFe from Operating Assets YoY(1) EBITDA from Operating CFe(1) from Operating Assets Assets (in US$ Mn) (in US$ Mn) $47.9 +55% $23.9 +18% Positive Drivers: $15.3 $40.4 Revenues: +$8.2 million 4Q'20 EBITDA 4Q'21 EBITDA 4Q'20 CFe 4Q'21 CFe

  13. Slide 13: A Growing Balance Sheet

    A Growing Balance Sheet As at March 31, As at March 31, 2021 2020 (in million) (in million) (3) INR INR US$ Cash, Cash Equivalents and Current Investments(1) 9,792 11,107 151.9 Property, Plant & Equipment, Net 95,993 108,847 1,488.2 Net Debt(2) 73,806 86,928 1,188.5 Hedging Asset (net) 6,266 5,488 7

  14. Slide 14: Q1'22 and FY'22 Guidance

    Q1’22 and FY’22 Guidance Q1’22 Guidance FY’22 Guidance Q1 FY’22 Revenue: INR 2,750 – 2,955(1) MWs 4,100 – 4,300 million(1) Operating by March 31, Q1 FY’22 PLF: 23.0% - 24.0% 2022 INR 17,900 – 18,900 million(1) of Revenue for FY’22 _________________________ 1) Q1 FY’22 revenue guidance is US$ 56.1 -

  15. Slide 15: Long Term Outlook

    Long Term Outlook MWs Operational Guidance MWs 8,000 Gross Margin(2,4), Cash Flow to Equity for 7,000 6,000 Operating Assets(3,4) and Debt Forecast CAGR 5,000 US$ Millions 24% 4,000 $350 CAGR Gross Margin: 3,000 43% $300 $270 - $285 2,000 Gross Margin: 1,000 $195 - $215 $250 - Gross Margin: IPO(a) F

  16. Slide 16: Appendix

    Appendix 16|Copyright © 2021 Azure Power |www.azurepower.com

  17. Slide 17: Historical Plant Load Factor (PLF); Annual, Quarterly

    Historical Plant Load Factor (PLF); Annual, Quarterly 24.0% 23.0% – 24.0% PLF 1Q FY’22 forecast 23.4% 23.0% 22.7% 22.3% 22.0% 21.5% Annual PLF 21.0% FY’21 20.9% 20.5% FY'20 19.5% 20.0% FY'19 18.6% 19.4% 18.8% 19.3% FY'18 18.2% 19.0% 17.9% 18.0% 17.0% 17.7% 16.4% 16.0% 16.8% 15.0% 1Q 2Q 3Q 4Q FY'19a

  18. Slide 18: Historical Plant Load Factor (PLF); Green Bonds Performance

    Historical Plant Load Factor (PLF); Green Bonds Performance PLF: Azure Power Energy Limited (RG1) PLF: Azure Power Solar Energy Private Limited (RG2) 22.0% 29.0% 21.0% 27.0% 27.4% 21.0% 20.6% 26.3% 25.5% 20.0% 20.1% 20.0% 25.0% 19.0% 23.0% 22.7% 21.0% 22.4% 18.0% 21.0% 17.3% 17.2% 20.1% 17.0% 19.0%

  19. Slide 19: DSO by Counterparty

    DSO by Counterparty Amounts in US$ million On time/ Past due Project Net Within Past due up DSO Customer Name Capacity (MWs) more than 365 Name Receivables grace to one year days (2) days period(1) 0.4 _ SECI , NTPC, NVVN 989 17.9 17.5 77 AP-1 Southern Power Distribution Com of AP Ltd 50 12.3 1.5 6.

  20. Slide 20: Use of Non-GAAP Financial Measures: EBITDA

    Use of Non-GAAP Financial Measures: EBITDA Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures of

  21. Slide 21: Reconciliation of Non-GAAP Measures to Comparable GAAP measures

    Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended March 31, Year Ended March 31, (in million) (in million) 2020 2021 2021 2020 2021 2021 INR INR US$ INR INR US$ Net loss (394) (2,791) (38.1) (2,337) (4,201) (57.2) Income tax expense 82 226 3.1 489 296 4.0 Interest expense

  22. Slide 22: Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe)

    Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe) Cash Flow to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP meas

  23. Slide 23: Cash Flow to Equity (CFe)

    Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ million) March 31, 2020 March 31, 2021 Operating Others Total Operating Others Total Sale of power 50.2 - 50.2 58.4 - 58.4 Cost of operations 4.5 - 4.5 5.2 - 5.2 General and administrative 5.3 4.3 9.6 5.3 (4.1) 1.2 Adjusted

  24. Slide 24: Cash Flow to Equity (CFe) – Contd.

    Cash Flow to Equity (CFe) – Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.5 million and US$ 0.3 million, share based compensation of US$ 0.6 million and US$ (12.6) million, realized gain on investment of US$$ 1.0 mil

  25. Slide 25: Cash Flow to Equity (CFe)

    Cash Flow to Equity (CFe) Year ended Year ended (US $ million) March 31, 2020 March 31, 2021 Operating Others Total Operating Others Total Sale of power 177.2 - 177.2 208.3 - 208.3 Cost of operations 15.7 - 15.7 17.2 - 17.2 General and administrative 15.6 17.5 33.1 11.3 29.6 40.9 Adjusted EBITDA 145

  26. Slide 26: Cash Flow to Equity (CFe) – Contd.

    Cash Flow to Equity (CFe) – Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.7 million and US$ 0.4 million, share based compensation of US$ 2.5 million and US$ 13.7 million, realized gain on investment of US$ 1.4 millio

  27. Slide 27: Projects Commissioned - Utility

    Projects Commissioned - Utility As on March 31, 2021 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in Credit Ratings (MW) (MW) (INR/kWh) Date(1) Years Operational – Utility Punjab 1 (3) Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 AAA Punjab 2.

  28. Slide 28: Projects Commissioned– Utility and C&I

    Projects Commissioned– Utility and C&I As on March 31, 2021 Commercial PPA Duration DC Capacity Tariff Project Names Operation Capacity Off taker of PPA in Credit Ratings (MW) (INR/kWh) Date(1) (MW) Years Operational – Utility Bihar 1 (3) Q3 2016 10 11 8.39 North & South Bihar Power Distribution Com

  29. Slide 29: Under Construction Projects –Utility and C&I

    Under Construction Projects –Utility and C&I As on March 31, 2021 Duration Expected Commercial PPA Capacity Tariff Credit Project Names Off taker of PPA in Operation Date (1) (MW) (INR/kWh) Ratings Years Under Construction Assam 1#(3) Q1– Q4 2021 65 3.34 Assam Power Distribution Company 25 B+ Rajast

  30. Slide 30: Debt Overview

    Debt Overview As of March 31, 2021 Maturity Profile (1,2,3) $600 $498.1 $500 $383.6 US$ Millions $400 $300 $183.9 $200 $138.8 $96.4 $100 $40.3 $0 FY'22 FY'23 FY'24 FY'25 FY'26 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split INR Debt Foreign Debt Short Term Debt Long Term Debt 292.3 ,

  31. Slide 31: Project Debt Schedule

    Project Debt Schedule As of March 31, 2021 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project INR US$ (2) Under construction Rajasthan 6 11,522 157.5 Floating INR/US$ 2021-2040 Partly commissioned Andhra Pradesh 1 2,508 34.3 Fixed INR

  32. Slide 32: Project Debt Schedule

    Project Debt Schedule As of March 31, 2021 Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project Under construction INR US$ (5) Punjab 3.1 and 3.2 1,219 16.7 Fixed INR 2024 Commissioned Chhattisgarh 1.1,1.2 & 1.3 1,215 16.6 Floating INR

  33. Slide 33: Glossary of Select Terms

    Glossary of Select Terms Accelerated Depreciation – Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the fiscal year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and

  34. Slide 34: Affordable Solar Power for Generations

    Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 34|Copyright © 2021 Azure Power |www.azurepower.com

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