Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Investor Day (October 2021)
67 slides from Renew Energy Global's investor day presentation, Oct 13, 2021
Slide 1: Capital Markets Day
Exhibit 99.2 Capital Markets Day Oct 12, 2021 For further inquiries please contact ir@renewpower.in 1
Slide 2: Disclaimer
Disclaimer offered by subject implement and on address only forward-looking This which same In measures addition, the Form similar related presentation as reasons, our words to of by other 20-F and risks the management ReNew business Forward-Looking industries. expressions. these “believe,” importan
Slide 3: Our Vision
Our Vision World Platts Energy 2020 Economic Awards “To India2019: Build Award WorkThe Rising 2021: 2020: Best Star Forum CSR Renewable Company Award: AwardEnergy Sumant of OnetheofYear Company India’s Sinha 3 Diversified 2021: In The Global World” recognized bestTop workplaces Pure-Play as Program
Slide 4: About Presenters
About Presenters Banking Investment banking Responsible in Citi Banking (US) Founder, infor and Lazard ESG ING Chairman strategy, Barings and Corporate and (UK) implementation CEOChief Finance 31 years Financial inand of Deloitte experience disclosures; Officer V a29 Chief Former years Chair Sustain
Slide 5: Agenda
Agenda 01 Why ReNew 02 ReNew’s Market Opportunity 03 Modeling Considerations 04 Sustainability and ESG 5
Slide 6: Why ReNew
01 Why ReNew 6
Slide 7: Why ReNew—Highlights
Why ReNew—Highlights contracted record opportunity of disciplined and in India diversified ✓ underwriting ✓✓ renewables; project asset ✓ Among base ✓✓✓ increasedLower focus One highest and cost of the absolute awareness oflargest capital returns renewable and among more in global thedebt-raising com
Slide 8: Opportunity, Business and Returns
Opportunity Business energy however, flows target expected receivables recover~95% tosolutions dues achieve With to ReNew issue improve of For from High expected ReNew Higher 18 with targets Telangana, GW GrowthAnd significantly Andhra margin, FY by To superior FY Become 22Tamil Pradesh EBITDA 25fas
Slide 9: Capital Discipline: Our Commitment
Capital Discipline Our Commitment Expected returns are above our cost of capital; Target attractive levered project equity IRRs of INR 16-20% 9
Slide 10: A Top Renewable Player in India
A Top Development 4.2 ownership 2. projects Adani 4.2Utility-Scale, (2) 3. operational As (3) percentage Globally on Source: 30thPure-Play capacity not June ReNew Providers available, 2021 isinformation Renewable based based In India a 100% on onthe Net company’s Power asstake company’s on Capacity
Slide 11: Highly Diversified Portfolio
Highly 777 GW, has been MW Wind, Diversified signed Wind 48%–or 5.2 5.2 projects Portfolio GW, GW Hydro 51% for OfNotes: which Contracted – 0.1the As GWon bid 100 Assets date; hasMW been Map ReNew’s Largest won includes and Regionally Operating aonly letter operational of Portfolio Diversified award
Slide 12: Strong Growth Track Record and Guidance
Strong goal 2017-21) 43 Committed original expected interest to equity INR of Growth 18 income. Bn expectations over to Run GWs 43 with drive the Rate ($735—$795 Through by Projected PPA EBITDA next FY EBITDA Reiterating Committed two 25; Organic EBITDA No margin years Mn) (1) new(In And weather INR
Slide 13: Multiple Value Drivers and Corporate Evolution
Multiple resources Corporate dedicate Drivers PPAs HAcross 1now “Plain toThe beVanilla” Green best positioned Energy Firm Power Value for the (RTC) Chain future 2To RE 13 Provide M&A Battery ImpetusStorage For Future Ancillary GrowthServic Market 3 Corporate EvolutionPPAs H2 1 Hydro “Plain Merchant
Slide 14: Recent Developments
Recent First Uttarakhand wind Helped empowering Forum Notes:Round-The-Clock project: INR First Developments avoid numbers renewable Binding employees, PPA 0.5%with ofconverted agreement India’s PPA energy SECI Renewable stakeholder Execution 765 carbon company tofor MW USD Energy acquisition and emi
Slide 15: ReNew's Market Opportunity
02 ReNew’s Market Opportunity 15
Slide 16: Significant M&A Opportunity
Significant 2030; $150-200 M&A Note: Includes value of Total installed/auctioned Overall $1Mn/MW; plain BnOpportunity addressable $market vanilla Corporate 4.renewable opportunity Assuming market InisPPAs One ~165+ amount Of RE energy replacement of The GW(1) provide 30-50 Fastest based andGovt. GW
Slide 17: Presence in All Segments
Presence (RE) plain Solutions Higher In All than GWs Market plain Currently Segments Range Of 6—7 IRRs Provides GWtargeted 5 Multiple – 9 GW(1) range Avenues plain 6—8vanilla GW Of Growth NAREFor vanilla Along Auction RE With No. vanilla Access Of ~15—20 RETo 17Higher 1. 3—4 If provided Return 5—6 5
Slide 18: Plain Vanilla RE
03 Plain Vanilla RE 18
Slide 19: Plain Vanilla RE Advantages
PlainML End-to-end approvals advocacy capabilities and cases minority Solar USD = Vanilla Ability $0.5-0.6Mn/MW 75 company) sales Digital etc.) INR execution (ReD RE: toto Leveraging 1. improve enhance analytics Largest &On Superior RPDC) acapabilities PLF consolidated returns Market returns, and sc
Slide 20: ReNew's Platform and Scale Benefits
ReNew’s on 40,000Market of landLeading for future Platform elopment & 20 Scale Provides Significant Cost Benefits 10+ ects & site es ~1,750 nes es 19 ive masts egional es 10+ ource 00+ ployees ,000 of land acquired ned/leased) + ibility
Slide 21: Strong Subscription and Disciplined Bidding
Strong Subscription 23% by Excludes 45%Capacity discipline 40% Track solar 35% Won ReNew’s Record PV ~11.5% 30% by manufacturing 25% ReNew OfWin Market Disciplined 20% %3 ReNew 15% 16% 57.2 linked 10% GW Bidding 17% Awarded capacity; Selective 5% 15.2Resulting 0% 11.9 GWRTCbidding GW 2.0 Share In 40
Slide 22: Initiatives to Mitigate Cost Inflation
Initiatives through Risk than on BoS/BoP the exposure measures bidToassumptions, costs Mitigate substantially such should Supply as provide and higher managed this Cost efficiency additional increase Inflation through has modules savings Has multi been Shielded pronged mostly 22 costNote: has ReNew
Slide 23: Enhancing Production with Solar Manufacturing
Enhancing global Production Plan project investment FY INR 22Setting supply cost Flexibility Competitive Self-supply Linked (incl. upshifts a 2.1 soft Incentive in Basic GW manufacturing cost) reduces Advantages cell Customs is(PLI) ~$190 and execution module Scheme—INR Duty By Mn lineBackward Produ
Slide 24: Digital Capabilities (ReD)
ReNew output Economic and employees’ Getting all projects machine &Digital rolled improve Forum 24 efficiency learning out (ReD) for to operational entire its based Accelerating in success maintenance inventory use efficiency cases in adopting Asset costs across activities ofManagement an wind 4IR 1
Slide 25: Intelligent Energy Solutions
04 Intelligent Energy Solutions 25
Slide 26: Leader in Intelligent Energy Solutions
Leader Generation Solar assets participate 10% GWs project year prices)—4.8 If Wind Minimizing In has Provided Higher build 1,300 Profile—ReNew’s Storage thermal, By MW Return c/kWh(1) intra-day RTC RE) installed Intelligent profile 40% Notes: 0% andEdge significant capacity 170% –INR 2key Energy 3M
Slide 27: ReNew Has Winning Track Record
ReNew Has Winning (including Providers installed Peak Tariff of ReNew) Already Wind Power No.EPC, of Higher Won and Competitors Solar, RTC Two end capacity Providers Intelligent of target Expected range ofEnergy India Equity Wind Wind Solution IRR 322EPC MW 400 Projects (2018) MWs Wind Round of + St
Slide 28: Advantages in M&A
05 Advantages in M&A 28
Slide 29: ReNew Positioned as Consolidator
ReNew: players sourcing investors projects ReNew don’t have have has O&M Positioned deals for access already expertise non-ReNew Ability & Digital toTo acquired global to in BeAbility act one makes AGreen and Consolidator 1.8GWs REto very complete States Bond improve conservative Most & Markets M&A
Slide 30: Market Consolidation Opportunity
MarketGW(2) Capacity 30-50 players greenfield inorganically Consolidating who asprojects per do can Assets not CEA act As have owned asAs some consolidators on the Top 31of by capital 10 August, these financial Players toportfolios •grow 2021; Have investors Havetheir Installed access Only grow, bus
Slide 31: Acquisition Rationale and Improvements
Recent Improvements, acquirers –risk projects, self-O&M given 300appropriately large MWhr Acquisition debt •Very &portfolio of application refinancing Self conservative hydro priced Of O&M, Better storage 359Hydro of Can MW Refinancing refinance ReD. assumptions Low-cost bundle Project Demonstrates
Slide 32: Corporate PPAs
06 Corporate PPAs 32
Slide 33: Focus on Corporate PPAs
Focus electricity to ~8-10 USDc/KWh Onat Cost sources 1 USD ~4-6 Reductions =Sustainability c/KWh 75 INRAnd DISCOMs 1. Ex-bus ESG and ESG Themes tariff Renewable1 targets forHas a captive of Accelerated ReNew net zero customer expects carbon Growth Renewables to will earn Inincrease The returns Corp
Slide 34: ~25 GW Corporate Market
~25 GW corporate CUF Through of 75% Market Commercial market Commercial Exists Source: power For Industry And Corporate purchases Industrial Analysis Renewable bilateral Demand Assuming bilateral Power In India replacement DISCOMs Sales (FY In 20,India All of&~20% Figures Industrial ReNew’s captive
Slide 35: Managing Counterparty Risk
07 Managing Counterparty Risk 35
Slide 36: Stable and High Quality Counterparties
Stable And MadhyaPradesh Rating—A+ CESCOM; domestic ratings Central Long-Term ~606% For %Agency of Rating—A- BESCOM, total Contracted includes portfolio MESCOM, (1)Cash AndhraPradesh SECI, has Flows DSOs NTPC HESCOM With of & 308% PTC; High days and Profile Quality or RREC GESCOM less(5); Rating—B i
Slide 37: Receivables Collections Improving
Receivables Collections Clearing of disbursements helping ~ $18toBn Discom improve •Accounts Situation Active from Dues Discom the receivable Expected Receivables Recently Government financials. management To invoked situation Improve of India tripartite is Meaningfully and liquidity expected contin
Slide 38: Andhra Pradesh PPA Renegotiation Update
Andhra re-negotiating cancelled the Rs. recently effort 2.44/kWh Pradesh commenced to or renegotiate renegotiated; Judicial inResolution placehearing process PPAs PPAs courts –and final Final aswas illegal have revising arguments delayed Hearings always Legal tariffs due Underway from matter upheld
Slide 39: Modelling Considerations
07 Modelling Considerations 39
Slide 40: Strong Growth Profile
Strong —$795 ($5,545—$5,850 Equity(5) FY converted for capex Operating 24 for 6.4 Growth Mn) 6.4 manufacturing; INR to GWsUSD 6.4 GW Capacity 29 Profile 10.2 GWs Mn) –or at31 110.2 GWs 2.6 5000 Which USD Bn of 5. GWs GWs1.2 6.4 INR On5.5 EBITDA = GW Is 75 track 94 respectively; INR Fully INR –and GW
Slide 41: Equity Funded Growth
Equity growth additional converted as on 31st Funded rateto 4.3 March, ofUSD GWs 20% for2021 at 18 INR of1GWs: new USD 46 projects Bn 8= GWs 75 INR INR; Including of 93Growth Excludes Bn INRcumulative Beyond 39—43 capex Portfolio for BnCFe manufacturing ($610 of No $580 Mn) new ($1,239 -$640 externa
Slide 42: Quarterly Capacity Additions
FYQ2 22 Solar date22 based (300 FY Capacity 22 on MW)Q3 capacity Additions SECI FY22 Transaction VII Q4OnWind FY22 Track Mah FYclosing Quarterly 22 PhAcquisition IIby Solar October Additions (300 Telangana 2021 MW) of Installed SECI Solar IVCapacity Acquisition Solar (250 8.2Hydro MW)(1) GW Addition
Slide 43: Growing Meaningfully; Cheaper Debt
Growing meaningfully; the has The 8.0%-8.5% domestic reduced all-inclusive Global 43 from onshore current Source: Acce interest 6.0%—6.7% project prevailing To Company’s rates Cheaper finance (inclusive tocost 4.0%—4.5% Debt estimates market ranges Domestic of hedging from Global 1. during Weighted
Slide 44: Attractive Valuations vs Peers
Significantly peer GWs3 group 3 (3)Peer (4) Higher 10.2 Group1—14.0x GWs Growth 6.4For GWs 13.3% ReNew 10.210.9 GWs(3) At Attractive x 9.7(4) x 9.2 44Valuations 10.2% 8.4EBITDA 9.1% 6.9% growth 11.2xof9% 26% 9.2x vs 7% peerPeer group Group(2)—5.0% of 12.5% during $9/share 2020-23$11/share Higher tha
Slide 45: Sustainability and ESG
07 Sustainability And ESG 45
Slide 46: ReNew's Sustainability Imperatives
ReNew emissions clean consumption 400,000 sustainable Committee Partnerships energy Islives ReNew’s Leading supply isWith operations such vested impacted ory as chain The total with deploying ToEnergy across stands framework installed Sustainability the responsibility 200+ at Transition robotic mill
Slide 47: Impacting Communities Through Sustainability Initiatives
Impacting For Exceptional Communities Talent (ReSET) With Sustainability 47 Source: Company InitiativesInformation ReNew Women India Initiative (ReWIN) Lighting Lives – Electrification Of Schools Community-Based Water Management ReNew Scholarship
Slide 48: Appendix
07 Appendix 48
Slide 49: Led by a Highly Experienced Management Team
Led By A Balram Resources Development Mehta Visionary Officer 49 Chief Years Mayank Founder Operating at ReNew Bansal And Officer Years AChief Highly 10 ofCommercial Experience 24Experienced Vaishali Officer N. Management Sinha3 36 Chief Ajay Sustainability Team Bhardwaj 10 31 President, 10Officer 2
Slide 50: Operational Portfolio and Offtaker Split
Counterparty Operational Offtaker Company Location Profile Split information Operational Overview State Offtaker Capacity asAnd Under-Construction on Capacity date Asset % Rajasthan Notes: % Breakdown Rating(2) Includes 30%2.7 Total SECI Karnataka GW NTPCPortfolio 2.3 43%and GW AA+ 24% PTC 0.1 Techn
Slide 51: Operating Performance
Operating 2.95 23.6% 18,737 21%-22% 15%-16% generated in and services 2021; transmission 2021, 1.61 Generation 22.8% 48,187 that 4.56 divided respectively Performance 24%-25% 17%-18% we 23.3% 3.24 customers(3) or provide profile by due 2.18 Electricity 26%-27% Solar the to 4.And under 5.43 plant is
Slide 52: Unprecedented Wind Resource Fluctuation
Unprecedented 5.0% 10—11—12 as major measurements there 1.8% cyclones was1.8% fluctuation —correlated Wind 52 131.1% Note: 14—15 Resource 0.7% inINR with wind —1.5% numbers 16—17 wind Impacted speeds 1.1% speeds 18—19—20 converted by 0.0% FY ~16% from 21-0.8% EBITDA ERA FY to— USD 21 -1.5% 521EBITDA
Slide 53: Project Cost Breakup
Project7% —7% 40-45% Cost overloading -10% Breakup 18%53-23% Solar Pre Land Project operative 60%—2 Cost expenses $0.5—$0.6mn/MW 70% Soft including Cost Balance interest AC(1) during of2%—5% Plant3 construction Wind 7% -10% Turbine Includes 25%Generator -30% cost60%—Land for Note: inverter, INR 65%
Slide 54: IRR Sensitivity
IRR Sensitivity 1.05% +/-2.40—2.50% Module Price To Tariff Change c/MW INR/KWh In +/-1 Inputs -/+2.65—2.70% +/-0.05 Absolute +/-1.50—1.55% Change PLF %in Parameter change 54 Source: +/-0.25% Units Company’s Change +/-0.15—0.20% estimates In Parameter O&MLevered $/MWEquity +/-500IRR -/+0.65—0.75% Rec
Slide 55: Tax Structure
Tax making level. income Any attract and thorough adopted most Policies plant of All fresh •these the MAT- analysis companies commissioned new fresh investment Inentities, India Not tax investments forApplicable regime have And each we under before don’t ReNew’s an project ReNew option Government’s
Slide 56: Project Lifecycle
Typical Vendors 20 21 22Project Financial 23 24 Months Development Closure TimeConstruction, between Cycle Is LOA 18-24 Approvals and Months PPAand was From Permits stretched Bid Issuance Completion duringToCOVID. Project of Transmission Currently Commissioning Line 1.2 GW and Project awaiting Charg
Slide 57: Track Record of Debt Raising and Cost Reduction
Trackand Secured Reduction Oct’20 through debt liquidity Senior Record USD Feb’21 refinancing Bank A+ and inGreen for less cost Of $6.1bn Apr’21 long Efficient onerous ofBonds USD debt term Loan Coupon 6.67% bonds new stated Tenor Capital Senior projects Rate are 1.71% based (yrs) Raise Overseas hed
Slide 58: Debt Profile
Debt 1Profile 66% credit, USD year 12% debt By Debt 1have to 5Type FX years hedges Project 44% Interest debt 88% cost(2) By Currency(1) as on 31st March INR 64% 2021 Corporate is ~ 9.69% debt 5812% ChartUS excludes DollarsEuro 36% which (fully hedged) constitutes By~1% Interest of total Ratedebt Var
Slide 59: Funding Philosophy and Leverage
Funding the maturity, anticipated Philosophy while expenditure otherAnd loansLeverage are to be expected incurred Operational totoamortize achieve Operational in theline CoD, with Development ortenor the expected of PPAs (yrs.purchase Amortizing 1 – 5) (yrs. price debt 6 –for 25) assumes acquired 75
Slide 60: Share Structure
~$1.1Bn (#) Shares (existing) month Class lock 400,730,493 Float A118,363,766 Shares up,Enable Founder 282,366,725 Total Robust CPPIB Entities Diluted Average ADIA Class and Shares Executive 13.6% BDaily Shares For13.4% Trading ReNew Officers 1 Class ~25% Volume Global Chave Shares freePLC 12 Econom
Slide 61: Project Details
Project + JVVNL, Jun-13 14.4 Maharashtra Dangri Jul-15 25 offtaker(6) Madhya Applicable State M.P. include in typically offtakers by escalation September KCTGE October Rajasthan Power Electricity 6.08(3a) 5.75 30.0 Level transmission Pradesh AVVNL publishes inAPSPDCL tariff 2021 addition 39.1 Manage
Slide 62: Project Details
Project Rajasthan Mar-16 Nimbagallu 4.84+Tax through Madhya to offtakers(6) GUVNL Pass-through issued AVVNL: power the at income management high offtakers(6) relevant sold to voltage. Level tax 5.92 to Pradesh 25 the Ajmer Pass-through Dec-15 Offtakers(6) paid through APSPDCL PPA; Sadla 100.0 MPPMCL
Slide 63: Project Details
Project Karnataka 4.84+Tax 3.46 SECI Energy MPPMCL Pradesh Mehbubnagar-1 escalation(5) customer Vidyut through PPA; voltage. tax management paid PTC 63 25Vitran Level Commissioned IEX Mar-16 The by 4.10 Utility 2. Pass-through 25 Mar-18 25 us MSEDCL: electricity 3. SECI estimated 3rd years Details V
Slide 64: Project Details
Project escalation Telangana MPPMCL Nov-17 20.0 Tariff Applicable State M.P. include in typically offtakers by September October Karnataka Power Electricity orLevel transmission 4.66 predefined publishes inlinked Feb-17 Jun-17 25 tariff 2021 addition Management NTPC 2020; Yadgir Details Mar-17 Dec-1
Slide 65: Project Details
Project Rajasthan Apr-21 SECI SECI-Rihand 2.79 Multiple PPAs Co. Ltd; reimbursement HT chart tariff; tariff Ltd; GUVNL: GUVNL which or 25 7.Level 2.68 the Hybrid JVVNL: Mah Third refers Oct-19 latest categorizes GUVNL Details 100.0 25 Ph Gujarat Party as to Projects; Total II 2.72 Jaipur invoices pe
Slide 66: Project Details
Project (7) FY is Distribution Management transmission September typically offtakers by based October Karnataka 23 SECI Level on publishes in2020; PPAs 2021 addition Co. 25 loss Co. Details Q1year Ltd; 5. or reimbursement Ltd; FYaHT the to 15th tariff JVVNL: Project 23 GUVNL: the tariff latest Off y
Slide 67: Thank You
Thank You For further inquiries please contact IR@renewpower.in 67