Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Q4 FY22 Earnings Presentation
48 slides from Adani Energy Solutions's earnings presentation, May 2022
Slide 1: Adani Transmission Limited Q4 and FY22 Results Presentation
Adani Transmission Limited Q4 and FY22 Results Presentation May 2022
Slide 2: Contents
CONTENTS 04-07 Adani Group and ATL 04 Executive Summary– 09 09 FY22 Financial Highlights – Q4FY22 11-19 and FY22 11 FY22- Balance Sheet, Cash 21-24 flow and Ratings 21 26-27 ESG Performance 26 Recent ESG and Industry- 29 specific Achievements 29 Annexure – Op Highlights, 32-46 Asset Portfolio, 32
Slide 3: Adani Group
Transmission adan
Slide 4: Adani: A world class infrastructure & utility portfolio
Adani: A world class infrastructure & utility portfolio ~US$ 206 bn1 Combined Market Cap Infrastructure Portfolio Incubator Energy & Utility Transport & Logistics Direct to consumer Other businesses (74.9%) (61.3%) (74.9%) (65%) (100%) (44%) AGEL ATL APSEZ AWL AEL NQXT2 Renewables T&D Ports & Logist
Slide 5: 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% 21% 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: 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 13 states Development with 31 transmission projects Transmission(3): 18,795 ckm(1) 51% of EBITDA - Central pool D
Slide 8: Executive Summary – FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Executive Summary – FY22 14
Slide 9: Executive Summary – Operational and Financial Performance FY22
ATL: Executive Summary – Operational and Financial Performance FY22 Operational Update: Other Key Updates and Awards: – Added 1,104 ckm to operational network reaching to 18,795 ckm – International Holding Company PJSC (IHC), through its – GTL, BKTL, FBTL projects were fully commissioned subsidiary
Slide 10: Financial Highlights – Q4FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Financial Highlights – Q4FY22 14
Slide 11: Consolidated Financial Highlights Q4FY22 YoY
ATL: Consolidated Financial Highlights Q4FY22 YoY Operational Revenue EBITDA (In Rs. Crs) 1382 2582 13.5% 17.5% 1176 2276 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Cash Profit PBT 763 370 -2.1% 362 19.4% 639 Q4FY21 Q4FY22 Q4FY21 Q4FY22 11 Note: Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM opt
Slide 12: Segment–wise Financial Highlights Q4FY22 YoY
ATL: Segment–wise Financial Highlights Q4FY22 YoY Operational Revenue Operational EBITDA (In Rs. Crs) 1737 773 1556 656 453 845 378 720 Transmission Distribution Transmission Distribution Q4FY21 Q4FY22 Q4FY21 Q4FY22 EBITDA PAT 799 674 199 583 185 502 71 38 Transmission Distribution Transmission Dist
Slide 13: Transmission Utility - Revenue and Operating EBITDA Bridge Q4FY22 YoY
ATL: Transmission Utility - Revenue and Operating EBITDA Bridge Q4FY22 YoY (In Rs. Crs) Revenue (ex incentive) up 17.3% supported by revenue Operating EBITDA up 17.8% driven by strong revenue contribution from new line elements 121 126 (8) (2) 4 12 (15) 821 773 700 656 Q4 FY22 Newly operational Posi
Slide 14: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q4FY22 YoY
ATL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q4FY22 YoY (In Rs. Crs) Revenue up 11.7% driven by higher energy demand Operating EBITDA increased by 19.7% 182 44 90 ( 49 ) 58 ( 161 ) (2) (8) 45 453 1,737 57 378 1,556 Q4 FY22 Other Operating Sale of Energy & Sale of Energy - Trans
Slide 15: Financial Highlights – FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Financial Highlights –FY22 14
Slide 16: Consolidated Financial Highlights FY22 YoY
ATL: Consolidated Financial Highlights FY22 YoY (In Rs. Crs) Operational Revenue EBITDA 10184 5493 15.2% 8.4% 8840 5066 FY21 FY22 FY21 FY22 PBT Cash Profit 1700 3.8% 3039 1620 5.0% 2929 FY21 FY22 FY21 FY22 Note: Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM option loss; 1) Q1FY22
Slide 17: Segment–wise Financial Highlights FY22 YoY
ATL: Segment–wise Financial Highlights FY22 YoY Operational Revenue Operational EBITDA (In Rs. Crs) 6966 2968 6048 2574 1660 1692 3217 2792 Transmission Distribution Transmission Distribution FY21 FY22 FY21 FY22 EBITDA PAT 3397 1105 1031 2988 2078 2096 259 131 Transmission Distribution Transmission
Slide 18: Transmission Utility - Revenue and Operating EBITDA Bridge FY22 YoY
ATL: Transmission Utility - Revenue and Operating EBITDA Bridge FY22 YoY (In Rs. Crs) Revenue (ex incentive) up 15.6% supported by Operating EBITDA up 15.3% driven by higher revenue contribution from newly operational lines and one-time order 462 424 (56) (7) (10) 35 1 ( 31 ) 3,140 2,968 2,716 2,574
Slide 19: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge FY22 YoY
ATL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge FY22 YoY (In Rs. Crs) Revenue up 15.2% driven by higher energy demand Operating EBITDA increased by 2.0% 5 87 14 772 918 ( 956 ) 58 ( 18 ) 6,966 1,692 1,660 57 99 ( 86 ) 6,048 FY22 Transmission Other Cross Subsidy Sale of Energy Sale
Slide 20: FY22 - Balance Sheet and Cash flow
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission FY22- Balance Sheet and Future Outlook Cash flow 14
Slide 21: EBITDA to Free Cash Flow (FY22)
ATL: EBITDA to Free Cash Flow (FY22) Strong cash profit and positive free cash flow for reinvestment (In Rs. Crs) -564 5493 -2,365 -267 -470 2297 1827 FY22 EBITDA Working Capital Changes Interest & Finance cost Tax outflow Free Cash Flow Repayment Cash generation for Growth 21 Notes: EBITDA includes
Slide 22: Debt Evolution and Key Ratios (FY22)
ATL: Debt Evolution and Key Ratios (FY22) (In Rs. Crs) Debt Net Debt Evolution - YoY Key Ratios Trend 2969 4.8 4.9 4.7 3085 3,090 2.6 2.7 2.7 632 470 2.0 1.9 24,933 24,933 5 22,093 296 1.6 1.3 1.3 1.2 22,093 FY20 FY21 FY22 Mar 21 Mar 22 Net Debt to EBITDA Net Debt Cash & Bank FY22 Additional debt Fo
Slide 23: 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 minimized1- above 5 year maturity increased from 12% to 81% As of As of 12% 31st Mar 16 (year of inception) 31th Mar 22 < 1 Y - 19% < 1 Y - 1% 1 to 5 Y - 69% 1 to 5 Y - 18% 89% > 5 Y - 12
Slide 24: ATL and AEML Credit Ratings
ATL and AEML Credit Ratings International – ATL Obligor Group (Transmission business) SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Negative ATL India Ratings / Brickworks AA+ Stable S&P Dollar Bond BBB- ATL ICRA A1+ Stable M
Slide 25: ESG - Performance
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ESG - Performance 08
Slide 26: ESG Initiatives and Achievements – FY22
ATL: ESG Initiatives and Achievements – FY22 Key ESG Initiatives and Achievements in FY22 • One of the 20 companies from India to become signatory to UN “Energy Compact” during COP26 in Nov’21. Received recommendation letter from UN Energy for commitment towards the SDG-7 goal • Electric utility to
Slide 27: Enhanced Safety Culture
ATL: Enhanced Safety Culture Safety Initiatives During FY22 Safety Performance in Q4 and FY22 • Safety training: 1,14,369 man-hours of safety training and awareness during FY22 Safety Parameters Q4FY22 Q4FY21 FY22 FY21 Near Miss Reporting 1,430 387 4,325 709 • Safety Award: Green Tech Safety Award 2
Slide 28: FY22 ESG and Industry-specific Awards
FY22 ESG and Industry-specific Awards
Slide 29: Key Awards & Achievements in FY22
ATL: Key Awards & Achievements in FY22 Greentech Corporate CIIs Operational Sustainability Competition Became Signatory to the UN Governance Award 2022 for - Platinum, Gold and Silver award in Energy Compact to further the Excellence in Corporate Environmental and Economic Sustainability SDG 7 (Affo
Slide 30: Annexure
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Annexure: – Operational Highlights – FY22 and Q4 – Credit Ratings – Bond and Asset Portfolio – ATL profile – ESG framework 22
Slide 31: Operational Highlights – FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Operational Highlights – FY22 14
Slide 32: Transmission Utility – Key Operating Metrics FY22 (YoY)
ATL: Transmission Utility – Key Operating Metrics FY22 (YoY) Transmission Network length(2) (cktm) Power Transformation Capacity(2) (MVA) 18,795 40,001 17,276 Transformation 30,905 capacity has increased Significant network addition (+9% yoy) on 29% during the period account of organic due to additi
Slide 33: Distribution Utility (AEML) – Key Operating Metrics FY22 (YoY)
ATL: Distribution Utility (AEML) – Key Operating Metrics FY22 (YoY) Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) SAIFI SAIDI CAIDI 99.996% 99.993% 34.58 31.11 28.95 Strong improvement Maintained supply 23.63 in reliability reliability of more parameters than 99% 0.82
Slide 34: Distribution Utility (AEML) – Key Operating Metrics FY22 (YoY)
ATL: Distribution Utility (AEML) – Key Operating Metrics FY22 (YoY) Consumer base (million) Distribution Loss (%) E-payment (% of total collection) 7.82% 3.08 3.06 69.73% 67.17% Improving E-payments 6.55% consistently due remains strong Increase in to focused loss with greater consumer base mitigati
Slide 35: Operational Highlights – Q4FY22
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Operational Highlights – Q4FY22 14
Slide 36: Transmission Utility – Key Operating Metrics Q4FY22 (YoY)
ATL: Transmission Utility – Key Operating Metrics Q4FY22 (YoY) Transmission Network length(1) (cktm) Power Transformation Capacity(1) (MVA) 18,795 40,001 17,276 Transformation Significant network 30,905 capacity has increased addition (+9% yoy) on 29% during the period account of organic due to addi
Slide 37: Distribution Utility (AEML) – Key Operating Metrics Q4FY22 (YoY)
ATL: Distribution Utility (AEML) – Key Operating Metrics Q4FY22 (YoY) Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) SAIFI SAIDI CAIDI 99.996% 99.992% 31.30 26.77 AEML maintained Strong more than 99.9% improvement in supply reliability 10.08 parameters 4.77 0.18 0.32 Q4
Slide 38: Distribution Utility (AEML) – Key Operating Metrics Q4FY22 (YoY)
ATL: Distribution Utility (AEML) – Key Operating Metrics Q4FY22 (YoY) Consumer base (million) Distribution Loss (%) E-payment (% of total collection) % 70.48% 3.08 3.06 7.56% Provisional E-payments Increase in Distribution loss is remains strong customer 4.61% which 60.86% with greater 4.97% additio
Slide 39: Future Outlook Asset Portfolio
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook Asset Portfolio 14
Slide 40: ATL's Operational Asset Portfolio as of FY22
ATL’s Operational Asset Portfolio as of FY22 Adani Transmission Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% AEML MUL ATSCL & WTGL, PPP Bikaner ATIL MEGPTCL ATBSPL APTL ATRL RRWTL CWRTL STL FBTL Khetri GTL Discom Discom MTSCL WTPL 8/9/10 Mundra - Tiroda - Ad
Slide 41: ATL's Under-construction Asset Portfolio as of FY22
ATL‘s Under-construction Asset Portfolio as of FY22 Adani Transmission Limited Since ATL’s evolution its Transmission 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Network (ckt km) has grown 3.4x and Obra-C WRSS – Lakadia Jam Kham- MP Kharghar NKTL Banas- WKTL HVDC# Khavda Karur expanded in
Slide 42: ESG Framework
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ESG Framework 08
Slide 43: 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 44: Progressing on Environmental and Climate Commitments
ATL: Progressing on Environmental and Climate Commitments Indicators Progress and Status: 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 reduction i
Slide 45: 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 46: 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 47: 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 48: Thank You
adani Transmission Thank You adani Transmission