Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Investor Presentation (May 2020)
49 slides from Adani Energy Solutions's investor presentation, May 2020
Slide 1: Adani Transmission Limited Equity Presentation
Adani Transmission Limited Equity Presentation MAY 2020
Slide 2: Contents
CONTENTS Adani Group ATL – Company Profile Investment Strategy, 04-07 09-12 14-23 Value creation and Outlook ADANI: World class infrastructure ATL: Manifesting Adani’s Infrastructure ATL: Key Highlights and Objectives of 14 & utility portfolio 04 Excellence in T&D business 09 Capital Management Prog
Slide 3: Adani Group
Transmission adani
Slide 4: Adani: World class infrastructure & utility portfolio
Adani Transmission Limited Investor Presentation | May 2020 Adani: World class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.3% 100% 75% 75% Philosophical shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D
Slide 5: Adani: Repeatable, robust & proven model to deliver RoE
Adani Transmission Limited Investor Presentation | May 2020 Adani: Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Red
Slide 6: Adani: Repeatable, robust business model applied consistently to drive value
Adani Transmission Limited Investor Presentation | May 2020 Adani: Repeatable, robust business model applied consistently 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
Slide 7: ATL: A platform well-positioned to leverage growth opportunities in T&D business
Adani Transmission Limited Investor Presentation | May 2020 ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Transmission Network of ATL - Present in 9 states with 21 Transmission (FY20): Development 14,739 ckms1;
Slide 8: Company Profile
Company Profile
Slide 9: ATL: Manifesting Adani's Infrastructure Excellence in T&D business
Adani Transmission Limited Investor Presentation | May 2020 ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution Strength and Pan Pan-India network & only private AEML - One of the best-run 3 million+ India Presence sector co. to operate 500 KV 93-year old integrated utility
Slide 10: ATL at a Glance
Adani Transmission Limited Investor Presentation | May 2020 ATL at a Glance 100%1 Contracted Assets Integrated Utility 100% 74.9% 25.1% Qatar Investment Wholesale Consumer Authority (QIA) • 12 Operating TBCB Assets(1), 9 under construction TBCB Assets ROA Assets ROA Asset • Transmission network of 9
Slide 11: Contracted Assets at a Glance
Adani Transmission Limited Investor Presentation | May 2020 Contracted Assets at a Glance Contracted Assets Key Characteristics TBCB Fixed (Section 63) Tariff 35 years + Life Asset Life of Asset Asset Base Fully- Op. EBITDA No. of Assets built (Rs. Bn) FY20 (Rs. Bn) Counterparty Network Pool 20 137.
Slide 12: Integrated Utility at a Glance
Adani Transmission Limited Investor Presentation | May 2020 Integrated Utility at a Glance Qatar Investment Wholesale Utility Consumer Utility Authority (QIA) Wholesale Utility - Key Characteristics Key Characteristics Return on Assets Consumer (ROA -Section 62) 3.04 million Counterparty Consumers b
Slide 13: Investment Strategy, Value Creation and Outlook
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Investment Strategy, Value Creation and Outlook 14
Slide 14: ATL: Key Highlights and Objectives of Capital Management Program
Adani Transmission Limited Investor Presentation | May 2020 ATL: Key Highlights and Objectives of Capital Management Program Development De-risking Capital Conservation • Significantly reduced green-field risk • Refinancing risk significantly minimized (mature asset operator) with debt maturity (>5
Slide 15: ATL: Reduced Development and Capex risk with High Credit Discipline and no Equity Dilution
Adani Transmission Limited Investor Presentation | May 2020 ATL: Reduced Development and Capex risk with High Credit Discipline and no Equity Dilution Self-funded contracted growth model with low capital risk FY16 FY20 Strict Credit Rating BBB-/Baa3 Covenant BBB-/Baa3 Significant Reduction in Greenf
Slide 16: Case Study: Development, O&M Efficiencies and Capital Management
Adani Transmission Limited Investor Presentation | May 2020 Case Study: Development, O&M Efficiencies and Capital Management to create immense shareholder value Fully funded Value Creation by Capital Management releasing Equity for Growth Case study USPP: Future of ATL Capital Management Program Cap
Slide 17: AEML (Integrated Utility): Significant De-risking through Capital Management
Adani Transmission Limited Investor Presentation | May 2020 AEML (Integrated Utility): Significant De-risking through Capital Management Capital De-risking of Asset Underlying Value Creation AEML US$ 1 bn bond issue in Jan-20 QIA’s acquisition of 25.1% stake in AEML for Rs. 32 bn investment Key Attr
Slide 18: ATL: Strategic Objectives
Adani Transmission Limited Investor Presentation | May 2020 ATL: Strategic Objectives Regulated growth opportunities Opportunity Set in Transmission Opportunity Set in Distribution ▪ AEML: ATL geared to fully leverage ▪ Achieve 20,000 Ckt kms by – Leveraging on 3mn+ customer opportunities for discip
Slide 19: Transmission business: Growth through TBCB pipeline
Adani Transmission Limited Investor Presentation | May 2020 Transmission business: Growth through TBCB pipeline Fully No. of COD/ Project operational projects SCOD3 cost tariff (Rs. bn) (Rs. bn)1 Fully built-up EBITDA FY20 EBITDA SCOD: State Under-construction 9 projects Mar‘20- 10.8 80 State 50% pr
Slide 20: AEML (Integrated Utility): Regulated Growth Opportunities
Adani Transmission Limited Investor Presentation | May 2020 AEML (Integrated Utility): Regulated Growth Opportunities Sustainable Growth Reliability Affordability Share of Power Procurement Capex Schedule (Rs. bn) Average Billing Rate (ABR) – Rs. /unit1 from different sources Project Capex Replaceme
Slide 21: ATL: Update on Covid-19, its impact on operations and key initiatives
Adani Transmission Limited Investor Presentation | May 2020 ATL: Update on Covid-19, its impact on operations and key initiatives • Power Transmission and Electricity Distribution is classified as an ‘essential service’ requiring all our operations to be fully-functional with minimum staff required.
Slide 22: ATL: Outlook
Adani Transmission Limited Investor Presentation | May 2020 ATL: Outlook Economic Outlook Operations Outlook • No major deviation in relation to guidance given by ATL and AEML with regards to financial and operational performance • Situation expected to improve progressively from May onwards as lock
Slide 23: ATL: Key Focus Areas FY21 and Beyond
Adani Transmission Limited Investor Presentation | May 2020 ATL: Key Focus Areas FY21 and Beyond Liquidity Management Growth • Focus on maintaining adequate liquidity cover to swiftly mitigate ATL well placed to capture future growth through multiple current uncertainties and any unpredictable sce
Slide 24: Regulatory Landscape
Adani TransmissionLimited Adani Transmission Limited Investor Presentation Debt Presentation | May 22020 | February 020 Transmission Regulatory Landscape 08
Slide 25: ATL: Regulatory Framework
Adani Transmission Limited Investor Presentation | May 2020 ATL: Regulatory Framework EA 2003 ROA AEML TBCB Growth Section 62 (ROA) Tariff Method - Multi Year (5 yr) Tariff Section 63 (TBCB) Tariff Method – License Period Basis Services O&M Power Procurement All other Costs Expenses Costs costs • An
Slide 26: ESG
Adani TransmissionLimited Adani Transmission Limited Investor Presentation Debt Presentation | May 22020 | February 020 Transmission ESGESG 08
Slide 27: ATL: ESG Performance
Adani Transmission Limited Investor Presentation | May 2020 ATL: ESG Performance 8 % ↓* 7.5 % ↓* 7.45 % * 1.835 MW Auxiliary Power Scope 1 Emission Solar Power Generation Solar Panel Consumption 3187008 TCo2e 2.73 MUs 346.53MUs 6.23 % ↓* 31.62 % ↓* 1.23 Million 195.4 Ha - Afforestation Trees planted
Slide 28: ATL: Integrated ESG Framework for enhanced value creation
Adani Transmission Limited Investor Presentation | May 2020 ATL: Integrated ESG Framework for enhanced value creation Technological advancement for minimal downtime during maintenance better availability increased EBITDA TARGET BY SEP 2021 Renewable Power Procurement at below APPC tariff reduction f
Slide 29: ATL: Key ESG Metrics and Initiatives
Adani Transmission Limited Investor Presentation | May 2020 ATL: Key ESG Metrics and Initiatives CO2 emissions Water Waste Land use (AEML - Dahanu) Environment Scope 1 (TCO2e): Fresh Water (KL): 18,16,997 ~40 KL Waste generated of used ~148 hectares of green belt 31,87,008 oil Water recycled (KL): 2
Slide 30: ATL: Environment awareness and Initiatives
Adani Transmission Limited Investor Presentation | May 2020 ATL: Environment awareness and Initiatives ATL recognizes that below environment related factors matter to our business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Man
Slide 31: AEML: Initiatives towards reduction of carbon footprint
Adani Transmission Limited Investor Presentation | May 2020 AEML: Initiatives towards reduction of carbon footprint Renewable Power Climate Awareness Targeted 30% of consumption from Renewable sources Environmentally compliant generation at ADTPS Committed to increasing share of renewable power proc
Slide 32: ATL: Governance Journey so far and future glide path
Adani Transmission Limited Investor Presentation | May 2020 ATL: Governance – Journey so far and future glide path We have charted a glide path to internalise global best practices of governance by September 2021 Journey so Far Target by SEP 2021 Structure for 8 SPVs including AEML, with no cross se
Slide 33: Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers
Adani Transmission Limited Investor Presentation | May 2020 Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers ATL and Adani Utility portfolio fares in line or better on various metrics with global peers Utility Consumers (mn) EBITDA margin % (FY20/CY20 / Fully-built)* EV/EBITDA (
Slide 34: Global Benchmarking: Regulatory Framework
Adani Transmission Limited Investor Presentation | May 2020 Global Benchmarking: Regulatory Framework Regulatory return (ROA) framework for transmission players across geographies Key Highlights 14.0% Equity portion 12.0% doesn’t depreciate ATL’s rate of return will WACC/Rate of return 10.50% 10.0%
Slide 35: ATL: Compelling Investment Case
Adani Transmission Limited Investor Presentation | May 2020 ATL: Compelling Investment Case Why Invest in Adani Transmission? Stable & • Predictable cash flow with contracted and regulated business predictable cash- • Long term concession life (~35 years); ~52% sovereign-rated counterparties as of F
Slide 36: Annexure
Adani TransmissionLimited Adani Transmission Limited Investor Presentation Debt Presentation | May 22020 | February 020 Transmission Annexure (Finance Strategy, Operational Portfolio, Sector Outlook, Community, Technology) 22
Slide 37: ATL: Emulating Group's Core Infra Philosophy at every phase
Adani Transmission Limited Investor Presentation | May 2020 ATL: Emulating Group’s Core Infra Philosophy at every phase Development Operations Post Operations Phase Origination Construction O&M and Technology Consumer Engagement Capital Mgmt Return based disciplined In-house tailor-made Remote opera
Slide 38: ATL: Capital Management Program Demonstrating Global Excellence
Adani Transmission Limited Investor Presentation | May 2020 ATL: Capital Management Program Demonstrating Global Excellence Highlights Obligor 1 Obligor 2 USPP AEML ATIL MEGPTCL STL, ATRL, CWRTL, RRWTL, AEML Asset PPP-8,9,10 FY20 Operational EBITDA (Rs. Crs) 1,683 596 1,805 Tenor 10 year 16.5 year 3
Slide 39: ATL's Capital Management Program brings diversity and elongated maturity to debt profile
Adani Transmission Limited Investor Presentation | May 2020 ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile Refinancing risk minimised1 As of As of US$ 44.8 mn of debt 31st Mar 16 31st Mar 20 (<1 year) vs. FFO of US$ 263.5 mn (FY20) 12% 12% Consolidate
Slide 40: ATL is rated Investment Grade from FY16 and beyond
Adani Transmission Limited Investor Presentation | May 2020 ATL is rated Investment Grade from FY16 and beyond International- Obligor Group SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable CARE, India Rating AA+ Stable AT
Slide 41: ATL's Evolution and Operational Portfolio
Adani Transmission Limited Investor Presentation | May 2020 ATL’s Evolution and Operational Portfolio ATL’s Transmission Network (ckt km) has grown 2.7x Adani Transmission Limited in 3 years; and Distribution business acquired in FY19 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% ATL’s “Grid
Slide 42: ATL: Locked-in Growth from Under-construction TBCB Projects
Adani Transmission Limited Investor Presentation | May 2020 ATL: Locked-in Growth from Under-construction TBCB Projects Adani Transmission Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ghatam- Obra-C WRSS – Bikaner - Lakadia Kharghar NKTL Jam Kham- FBTL Banas- HVDC# pur Badaun XXI (A) Kh
Slide 43: Sector Outlook: Indian Transmission Sector Poised for Significant Growth
Adani Transmission Limited Investor Presentation | May 2020 Sector Outlook: Indian Transmission Sector Poised for Significant Growth Robust growth outlook driven by strong policy support Significant under-investment in Transmission sector historically…(1) …resulted into very low MVA/MW ratio in Indi
Slide 44: Size of Opportunity: Investment of Rs. 8.2 tn/ USD 117 bn expected
Adani Transmission Limited Investor Presentation | May 2020 Size of Opportunity: Investment of Rs. 8.2 tn/ USD 117 bn expected in Indian Transmission over the Next Decade Transmission Lines and Transformation Capacity to Grow…. …requiring Rs. 8.2 tn/ USD 117 bn of investment (1) Transmission Lines (
Slide 45: ATL: Inculcating Safety Culture
Adani Transmission Limited Investor Presentation | May 2020 ATL: Inculcating Safety Culture Safety – Always First Safety Initiatives in FY20 • Training: Over 16,500 man-hours of safety Safety Performance in FY20 awareness and training • Gensuite: Dedicated app for safety incident reporting • 1 fatal
Slide 46: ATL: Harnessing Innovation and Technology to Drive Excellence
Adani Transmission Limited Investor Presentation | May 2020 ATL: Harnessing Innovation and Technology to Drive Excellence Cost Safety Reliability Efficiency/Response time Initiative Impact ▪ Drone Inspection for Asset Maintenance ▪ Usage of drones through Light Detection and Ranging (LiDAR) method f
Slide 47: ATL: Revenue and EBITDA trend
Adani Transmission Limited Investor Presentation | May 2020 ATL: Revenue and EBITDA trend Operating Revenue performance Operating EBITDA performance Transmission Distribution 10,237 Transmission Distribution Margin 92% 24% 4,287 6,530(1) 91% 19% 7,532 1,805 2,857(1) 91% 3,944 806 4,270 1,944 2,482 3
Slide 48: Thank You
Adani Transmission Limited Investor Presentation | May 2020 Thank You 48
Slide 49: Legal Disclaimer
Adani Transmission Limited Investor Presentation | May 2020 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 pres
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