Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q3 FY2021 Earnings Presentation
35 slides from Azure Power Global's earnings presentation, Feb 11, 2021
Slide 1: Fiscal Third 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 Third Quarter 2021 Ended December 31, 2020 Earnings Presentation February 11, 2020 *7 GWs include 4 GWs for which LOA has been received but PPA1|Copyright © sig
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 3: Q3 FY 2021 Key Developments
Q3 FY 2021 Key Developments 3|Copyright © 2021 Azure Power |www.azurepower.com
Slide 4: Key Highlights of Recent Developments
Key Highlights of Recent Developments Second Largest Solar Operational (2) Under Construction (2) Committed (3) Portfolio in India (1) 2,138 MWs AC 977 MWs AC 4,000 MWs 7,115 MWs (2,657 MWs DC) Key Developments • ESG Highlights: • Received AA ESG rating from MSCI, top quartile of industry • Obtained
Slide 5: 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% Wil
Slide 6: 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 7: 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 8: 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 9: Q3 FY 2021 Overview
Q3 FY 2021 Overview 9|Copyright © 2021 Azure Power |www.azurepower.com
Slide 10: 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 11: 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 12: 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 $16 inflation and more MWs
Slide 13: Operating Assets Review: EBITDA, CFe, & Leverage
Operating Assets Review: EBITDA, CFe, & Leverage 142% growth in CFe from Operating Assets YoY EBITDA from Operating CFe from Operating Assets Assets (in US$ Mn) (in US$ Mn) $42.4 $16.8 Positive Drivers: +26% • Revenues: +$6.5 million +142% $33.7 • Lower cash G&A: +$2.8 million • Lower cash interest
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights As at March 31, As at December 31, 2020 2020 (in million) (in million) (3) INR INR US$ 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 15: FY'21 and Initial FY'22 Guidance
FY’21 and Initial FY’22 Guidance FY’21 Guidance FY’22 Guidance No change to Guidance 2,900 – 3,115 MWs Operating by March 31, Expect to be at the lower end 2022 of Operating MW and Revenue Guidance INR 17,900 – 18,900 million(1) 4Q FY’21 Revenue: INR 4,335 – 4,435 million (1) of Revenue for FY’22 Q4
Slide 16: 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 $179
Slide 17: Appendix
Appendix 17|Copyright © 2021 Azure Power |www.azurepower.com
Slide 18: Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY'21 Forecast
Historical Plant Load Factor (PLF); Annual, Quarterly and 4Q FY’21 Forecast 24.0% 23.0% 23.0% 22.0% – 23.0% PLF 22.7% 4Q FY’21 forecast 22.3% 22.0% 21.5% 21.0% Annual PLF 20.5% FY'20 19.5% 20.0% FY'19 18.6% 19.4% FY'18 18.2% 18.8% 19.3% 19.0% 17.9% 18.0% 17.0% 17.7% 16.4% 16.0% 16.8% 15.0% 1Q 2Q 3Q
Slide 19: Historical Plant Load Factor (PLF); Green Bonds Performance
Historical Plant Load Factor (PLF); Green Bonds Performance PLF: Azure Power Energy Limited (RG1) PLF: Azure Power Solar Energy Private Limited (RG2) 22.0% 27.0% 26.3% 21.0% 21.0% 25.5% 25.0% 20.0% 20.1% 20.0% 23.0% 22.7% 21.0% 22.4% 19.0% 21.0% 18.0% 17.3% 20.1% 17.2% 19.0% 17.0% 17.0% 17.0% 16.0%
Slide 20: DSO by Counterparty
DSO by Counterparty Amounts in US$ 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 $0 FY'21 FY'22 FY'23 FY'24 FY'25 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split INR Debt Foreign Debt Short Term Debt Long Term Debt 291.2 , Con
Slide 32: Project Debt Schedule
Project Debt Schedule As of December 31, 2020 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project INR US$ (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 33: 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 34: 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 35: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 35|Copyright © 2021 Azure Power |www.azurepower.com