Azure Power Global Limited · OTC:AZREF

Azure Power Global — Q3 FY2021 Earnings Presentation

42 slides from Azure Power Global's earnings presentation, Mar 1, 2021

Slide 1: Investor 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 Investor Presentation March 1, 2021 *7 GWs include 4 GWs for which LOA has been received but PPA has 0|Copyright © 2020 Azure Power |www.azurepower.com not been signed
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
Slide 4: Market Opportunity
Market Opportunity India’s 450GW Renewable Energy Capacity Electricity Usage per Capita (MWh) (2) Solar is the Lowest Cost Source of Power (3) Addition Roadmap (1) 450 13.1 US: ~13x > India Tariff (INR/kWh) China: ~5x > India CAGR: 32% INR/kWh 4.9 100 2.99 2.00 2.56 37 1.0 4 2015 Dec'2020 2022E 2030
Slide 5: Azure Power Overview (AZRE: NYSE)
Azure Power Overview (AZRE: NYSE) Second Largest Solar Operational (2) Under Construction (2) Committed(3) Portfolio in India 977 MWs AC 2,138 MWs AC 4,000 MWs AC 7,115 MW (1) (2,657 MWs DC) Utility-Scale Projects | 6,948 MWs Azure Roof Power | 167MWs Awan |Punjab| India’s First Private MW scale Sol
Slide 6: 7,115 MW Committed Portfolio, 1,834 MWs Operational
7,115(1) MW Committed Portfolio, 1,834 MWs Operational ~90%(2) in High ~6%(2) in Mid Focus on Strong Counterparty Credit Irradiation Zone Irradiation Zone Rajasthan (3,675 MW) Punjab (214 MW) ~95% of the portfolio 214 MW BBB- & above is Investment Grade(4) 625 MW 95% 3,050 MW Uttar Pradesh (100 MW)
Slide 7: Projects Under Construction Update
Projects Under Construction Update Rajasthan Rajasthan 6 - 600 MWs Rajasthan 8 - 300 MWs PPA Revised 300 MWs Completed, • Q2 CY’21 (1) 300 MWs COD expected by May(1) Q3 CY’21 COD Financing documents to Financing 100% be signed shortly Under Construction Operating Land 100% 100% Transmission 100% Nea
Slide 8: Projects Under Construction Update
Projects Under Construction Update Assam Rajasthan Rajasthan 9 - 300 MWs Assam - 90 MWs Revised 25 •MWs Commissioned; Q2 CY’21 Q4 CY’21(1) PPA COD 40 MWs in 2Q and 25 MWs 3Q’ CY21(1) Financing Financing documents to Completed be signed shortly Under Construction Land 100% Operating ~95% Transmission
Slide 9: Long Term Outlook
Long Term Outlook MWs Operational Guidance MWs Gross Margin(2,4), Cash Flow to Equity for 8,000 7,000 Operating Assets(3,4) and Debt Forecast 6,000 CAGR USD Millions 5,000 24% $350 Gross Margin: 4,000 $275 - $290 $300 3,000 CAGR Gross Margin: $200 - $220 43% $250 2,000 Gross Margin: 1,000 $200 $179
Slide 10: ESG Highlights
ESG Highlights FY’21 Highlights  358 tons of damaged solar modules have been recycled or properly disposed of at a authorized hazardous waste facility  Received MSCI AA rating for ESG (top quartile for industry)  Avoided 2.4 million tons of CO2 year to date (1), 8.9 million ton equivalents since
Slide 11: Corporate Social Responsibility Programmes
Corporate Social Responsibility Programmes Promoting livelihood enhancement by providing Donation of modified wheelchair and two Promoting education by providing smart class in skill development across 7 sites in Gujarat wheelers to the disabled army veterans Government schools across multiple state
Slide 12: Strong Governance and Disclosure Standards
Strong Governance and Disclosure Standards Only Indian Solar Independent Power Producer listed on NYSE Standards reinforced by listing requirements Strong Corporate Governance Home country SEC & NYSE SGX-ST requirements that requirements regulatory also require regular requiring periodic requirement
Slide 13: Experienced Board Backed by Long Term Marquee Shareholders
Experienced Board Backed by Long Term Marquee Shareholders IFC Global Infrastructure Fund  Increased stake in Azure Power to c.50.3% through multiple rounds & open market purchase  Made its first investment in company in 2010 and increased stake through multiple rounds with current  2nd largest C
Slide 15: Industry and Regulatory Update
Industry and Regulatory Update • 14 GWs of new tenders released and only ~10 GWs allocated • Favorable policy/ regulatory changes. Clarity that recovery will in FY’21 so far, significantly below the level in FY’20. Recent occur under change in law for Basic Custom Duty (BCD) imposition. drop in tari
Slide 16: The Solar Advantage in India
The Solar Advantage in India Electricity Usage per Capita (MWh) 13.1 US: ~13x > India Azure’s solar plants have ~100 mn people without high availability Seasonal Energy direct power source Curve Summer Monsoon China: ~5x > India 4.9 India-Demand Peak Low 1.0 Solar-Generation Peak Low USA China India
Slide 18: Q3'21 Key Performance Metrics
Q3’21 Key Performance Metrics 1,987 MW Operating 7,115 MW Operating US$ 0.39mn Project US$ 48.2mn Q3 FY’21 10% increase & Committed Cost/MW (DC) Revenue 34% increase(1) 10% decrease(2,3) 16% increase • 183 MW (277 MW DC) commissioned • 1,128 MWs are under construction • DC cost per MW US$ 0.45mn YTD
Slide 19: Review of Q3 FY'21 Results
Review of Q3 FY’21 Results % Change Reported Adjusted Reported Reported 3Q FY’21 After Adjustments* adjusted Q3 FY’21 (in million) 3Q FY’20 3Q FY’20 3Q FY’21 3Q FY’21 Adjustments Comments US$ vs adjusted Q3 INR INR INR US$ US$ FY’20 3,047 13% increase in operational DC MWs. Insolation lower by Reven
Slide 20: Improved Overhead and DSO
Improved Overhead and DSO G&A Excluding Stock Compensation & Accounts Receivable DSO Management Transition Millions Days $24 150 $22 FY’21 cash G&A(1) on track to be $20 ~$23-$24 mn, down ~10% YoY(2) 140 $18 FY’22 cash G&A(1) expected to 130 be about 10% higher reflecting $16 inflation and more MWs
Slide 21: Operating Assets Review: EBITDA, CFe, & Leverage
Operating Assets Review: EBITDA, CFe, & Leverage 142% growth in CFe from Operating Assets YoY EBITDA from Operating CFe from Operating Assets Assets (in US$ Mn) (in US$ Mn) $42.4 $16.8 Positive Drivers: +26% • Revenues: +$6.5 million +142% $33.7 • Lower cash G&A: +$2.8 million • Lower cash interest
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights As at March 31, As at December 31, 2020 2020 (in million) (in million) (3) INR INR US$ Cash, Cash Equivalents and Current Investments(1) 9,792 8,915 122.1 Property, Plant & Equipment, Net 95,993 109,460 1,499.3 Net Debt(2) 73,806 83,770 1,147.4 Hedging Asset (net) 6,266 5,21
Slide 23: 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) 0.3 _ SECI , NTPC, NVVN 839 13.2 12.9 59 AP-1 Southern Power Distribution Com of AP Ltd 50 12.4 1.1 6.
Slide 25: Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY'21 Forecast
Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY’21 Forecast 24.0% 23.0% 23.0% 22.0% – 23.0% PLF 22.7% 4Q FY’21 forecast 22.3% 22.0% 21.5% 21.0% Annual PLF 20.5% FY'20 19.5% 20.0% FY'19 18.6% 19.4% FY'18 18.2% 18.8% 19.3% 19.0% 17.9% 18.0% 17.0% 17.7% 16.4% 16.0% 16.8% 15.0% 1Q 2Q 3Q
Slide 26: 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% 27.0% 26.3% 21.0% 21.0% 25.5% 25.0% 20.0% 20.1% 20.0% 23.0% 22.7% 21.0% 22.4% 19.0% 21.0% 18.0% 17.3% 20.1% 17.2% 19.0% 17.0% 17.0% 17.0% 16.0%
Slide 27: 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
Slide 28: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended December 31, Nine Month Ended December 31, (in million) (in million) 2019 2020 2020 2019 2020 2020 INR INR US$ INR INR US$ Net loss (1,358) (1,088) (14.9) (1,943) (1,410) (19.3) Income tax expense/ (benefit) 236 (150) (2.1
Slide 29: 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
Slide 30: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ million) December 31, 2019 December 31, 2020 Operating Others Total Operating Others Total Sale of power 41.7 - 41.7 48.2 - 48.2 Cost of operations 3.7 - 3.7 4.2 - 4.2 General and administrative 4.3 4.9 9.2 1.6 21.1 22.7 Adj
Slide 31: 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$ 0.2 million andUS$ 0.1 million, share based compensation of US$ 1.4 million and US$ 18.2 million, realized gain on investment of USD$ 0.4 millio
Slide 32: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) ` Nine Months ended Nine Months ended (US $ million) December 31, 2019 December 31, 2020 Operating Others Total Operating Others Total Sale of power 127.1 - 127.1 150.2 - 150.2 Cost of operations 11.2 - 11.2 12.0 - 12.0 General and administrative 10.3 13.3 23.6 6.1 33.6 39.
Slide 33: 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$ 0.2 million and US$ 0.2 million, share based compensation of US$ 1.9 million and US$ 26.4 million, realized gain on investment of US$ 0.5 millio
Slide 34: Projects Commissioned - Utility
Projects Commissioned - Utility As on December 31, 2020 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
Slide 35: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As on December 31, 2020 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
Slide 36: Under Construction Projects –Utility and C&I
Under Construction Projects –Utility and C&I As on December 31, 2020 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 Q1– Q3 2021 65 3.34 Assam Power Distribution Company 25 B+ Rajasth
Slide 37: Debt Overview
Debt Overview As of December 31, 2020 Maturity Profile (1,2,3) $500 $464.8 $445.2 $400 US$ Millions $300 $200 $141.8 $99.9 $100 $57.8 $60.0 $0 FY'21 FY'22 FY'23 FY'24 FY'25 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split INR Debt Foreign Debt Short Term Debt Long Term Debt 291.2 , Con
Slide 38: Project Debt Schedule
Project Debt Schedule As of December 31, 2020 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project INR US$ (2) Under construction Rajasthan 6 5,909 80.9 Mixed INR/US$ 2021-2040 Partly commissioned Andhra Pradesh 1 2,508 34.4 Fixed INR 20
Slide 39: Project Debt Schedule
Project Debt Schedule As of December 31, 2020 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 1,235 16.9 Floating I
Slide 40: 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
Slide 41: Investor Contact / Media Contact
Investor Contact Media Contact Nathan Judge, CFA Samitla Subba ir@azurepower.com pr@azurepower.com +1 (917) 209-6750 +91-11- 4940 9854 +91-99-1065 6148 40
Slide 42: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 41|Copyright © 2020 Azure Power |www.azurepower.com

Azure Power Global — Q3 FY2021 Earnings Presentation on 6ix

Azure Power Global — Q3 FY2021 Earnings Presentation

Slide 1: Investor Presentation

Slide 2: Disclaimer

Slide 3: Executive Summary

Slide 4: Market Opportunity

Slide 5: Azure Power Overview (AZRE: NYSE)

Slide 6: 7,115 MW Committed Portfolio, 1,834 MWs Operational

Slide 7: Projects Under Construction Update

Slide 8: Projects Under Construction Update

Slide 9: Long Term Outlook

Slide 10: ESG Highlights

Slide 11: Corporate Social Responsibility Programmes

Slide 12: Strong Governance and Disclosure Standards

Slide 13: Experienced Board Backed by Long Term Marquee Shareholders

Slide 14: Industry Overview

Slide 15: Industry and Regulatory Update

Slide 16: The Solar Advantage in India

Slide 17: Operating and Financial Metrics

Slide 18: Q3'21 Key Performance Metrics

Slide 19: Review of Q3 FY'21 Results

Slide 20: Improved Overhead and DSO

Slide 21: Operating Assets Review: EBITDA, CFe, & Leverage

Slide 22: Balance Sheet Highlights

Slide 23: DSO by Counterparty

Slide 24: Appendix

Slide 25: Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY'21 Forecast

Slide 26: Historical Plant Load Factor (PLF); Green Bonds Performance

Slide 27: Use of Non-GAAP Financial Measures: EBITDA

Slide 28: Reconciliation of Non-GAAP Measures to Comparable GAAP measures

Slide 29: Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe)

Slide 30: Cash Flow to Equity (CFe)

Slide 31: Cash Flow to Equity (CFe) – Contd.

Slide 32: Cash Flow to Equity (CFe)

Slide 33: Cash Flow to Equity (CFe) – Contd.

Slide 34: Projects Commissioned - Utility

Slide 35: Projects Commissioned– Utility and C&I

Slide 36: Under Construction Projects –Utility and C&I

Slide 37: Debt Overview

Slide 38: Project Debt Schedule

Slide 39: Project Debt Schedule

Slide 40: Glossary of Select Terms

Slide 41: Investor Contact / Media Contact

Slide 42: Affordable Solar Power for Generations