Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Debt Investor Presentation (November 2023)
47 slides from Adani Energy Solutions's debt investor presentation, November 2023
Slide 1: Adani Energy Solutions Limited Investor Presentation
Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Investor Presentation November 2023
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio About AESL and Business 09-13 Philosophy 15 Transmission 17-19 Distribution 21-23 Smart Metering 25-27 District Cooling 29-33 ESG Framework and Investment Case 35-45 Annexure
Slide 3: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Infrastructure and Utility Primary Industry Flagship Emerging B2C Core Portfolio Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to Consumer Mining (56.3%) (63.2%) (72.6%) (73.2%) (65.5%) (100%) AGEL AESL APSEZ Cement
Slide 5: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 4x 6 EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x 6 Growth 1.4x 6 APSEZ Adani’s Core Infra. Platform – 320 M
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Centre of Excellence Project Management & Assurance Group AIMSL* Policy - Strategy - Risk Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisi
Slide 7: AESL: A platform well-positioned to leverage growth opportunities in energy domain
AESL: A platform well-positioned to leverage growth opportunities in energy domain RAB expansion through Execution Prowess Strategic Presence Asset Hardening in Discoms Transmission Network of Transmission - Presence in 14 states 8% CAGR growth in RAB in Mumbai Development 19,862 ckm(1) Distribution
Slide 8: About AESL
adani Energy Solutions Adani Energy Solutions Ltd. (formerly known as Adani Transmission Ltd.) adani Energy Solutions =i, Smart Metering About AESL
Slide 9: AESL: Business Snapshot
AESL: Business Snapshot GQG 6.76%(1) Adani Family 73.22% Public Shareholding 20.02% Transmission Distribution Smart Metering District Cooling 100% 25.1%(2) 74.9% 100% 100% 100% 100% AEML MUL 19.4 million smart meters with a Section 63 Section 62 Mundra Parallel License (under approval): Mumbai contr
Slide 10: Transformational Journey with Robust Growth and Credit Discipline
Transformational Journey with Robust Growth and Credit Discipline EBITDA (Rs. Crs) 6,101 5,493 5,066 4,519 2,937 3,113 1,997 2,005 FY16 FY17 FY18# FY19 FY20 FY21 FY22 FY23 Transmission Distribution Net Debt to EBITDA(2) (x) Gross Fixed Assets(3) (Rs Crs) AESL is Investment grade rated since FY16 4.2
Slide 11: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Complex projects experience: Completed HVDC project − Route alignment on topographic maps to optimize route & (~1000 kms) in a record time of 24
Slide 12: Project Management & Assurance Group (PMAG) - End to End Project Integration
Project Management & Assurance Group (PMAG) - End to End Project Integration Bidding, Site Scouting Project Development & Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of 2,000+ man-years of co
Slide 13: Capital Management Philosophy to achieve growth at scale with capital discipline
Capital Management Philosophy to achieve growth at scale with capital discipline AESL is the only private sector transmission and distribution company in India with International IG Rating – Long life contracted assets with sovereign counterparties in a stable regulatory regime (Transmission: 35-yea
Slide 14: Transmission
lani Energy Solutions
Slide 15: Transmission Business
Transmission Business Transmission Section 63 Section 62 Key Characteristics (Fixed tariff1) (RAB Assets) Concession Life : 35 years 30 Transmission Assets 5 Transmission Assets Counterparty : Network pool (Centre and State) 8 Under-construction 1 Under-construction 22 Operating Assets 4 Operating A
Slide 16: Distribution
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission Distribution 14
Slide 17: Distribution Business
Distribution Business Distribution Section 62 (RAB Assets) AEML MUL Parallel Licensing Key Characteristics (applied and proposed) Mumbai Mundra SEZ License period: Perpetual 400 sq km license area 85 sq km license area • Mundra Subdistrict • Navi Mumbai & Thane Regulated Asset Base: Regulated Asset
Slide 18: AEML Distribution: India's No. 1 power utility
AEML Distribution: India's No. 1 power utility, as per MoP, McKinsey, PFC (Scored 99.6/100) Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition RAB Addition (Rs Crs) Capitalised RAB (Rs Crs) About Mumbai 4,619 CAGR of 8% 8th Most Populous City in
Slide 19: MPSEZ Utilities Limited (MUL): Overview
MPSEZ Utilities Limited (MUL): Overview Mundra SEZ is strategically located with well developed supporting RAB(1,2) (Rs Cr) infrastructure serving as an attractive industrial hub 56%, – Electricity Distribution for Mundra SEZ area 44 RAB FY23 44%, Rs 80 Cr 35 – Catering primarily to commercial and i
Slide 20: Smart Metering
adani Energy Solutions Smart Metering
Slide 21: Smart Metering Business
Smart Metering Business Smart Metering Key Characteristics DBFOOT (Totex Model) Payment Security through Direct Capex + Opex Contract period: 10 Years debit facility Under Implementation Counterparty: Pool of over 78 million Enhanced energy efficiency and RE consumers integration 8 Contracts (19.4 M
Slide 22: Smart Metering Contractual Framework
Smart Metering Contractual Framework Flow of Revenue for Smart Meter SPV Contract For Advanced Metering Infrastructure Service Provider (AMISP) Payment of Electricity Bills Consumers Payment Gateway Agent Bank Month Months 0 120 Supply of Direct Debit Facility Implementation Period Operational Perio
Slide 23: Market Dynamics: Smart Metering Business
Market Dynamics: Smart Metering Business – AESL’s Market Share (LOA) – 20% in 97 Mn Smart Meters awarded so far – Untapped market (ex LOA and LOI) – 136 Mn Smart meters Total Smart Meters Punjab Uttarakhand Awarded AESL 20% Uttar Pradesh Rajasthan Assam Bihar 773K 2839k 80% LoA awarded, Madhya Prade
Slide 24: District Cooling
District Cooling 24 Picture source: GIFT City DC Plant
Slide 25: District Cooling Business – Snapshot
District Cooling Business – Snapshot The District Cooling System (DCS) produces chilled water in a central plant and distributes cooling capacity in the form of chilled water from the central plant to multiple buildings through a network of underground pipes for use in space and process cooling. 1 A
Slide 26: District Cooling Business - a centralized, energy-efficient and low carbon cooling solution
District Cooling Business - a centralized, energy-efficient and low carbon cooling solution to drive sustainability in cooling sector BUSINESS RATIONALE TRADITIONAL VS DISTRICT COOLING − Opportunity to unlock potential in nation-wide Infrastructure Large Addressable Market and (airports, data centers
Slide 27: Four key segments to drive India's DCS demand
Four key segments to drive India’s DCS demand Cumulative Cooling Demand from key segments by FY30(1) (in Mn TR) Commercial Real To experience growth from 0.6 bn sqft (2019) 16% 84% 44.04 Estate to 1 bn sqft (2030) Global industrial cooling market, expected to 2.66 Industrial Cooling 20% 80% reach ~$
Slide 28: ESG Framework and Investment Case
ESG Framework and Investment Case 28
Slide 29: Assurance backed ESG framework
Assurance backed ESG framework Guiding principles IFC E&S United Nations UN Sustainable India Business & Biodiversity SLB Performance Global Compact Development Goals Initiative (IBBI) Principles Standards Guiding Policies principle Disclosure Standards TCFD TNFD GRI Standards CDP disclosure BRSR GH
Slide 30: Transforming through Green Energy Adoption
Transforming through Green Energy Adoption − AESL's pledge to ‘Net Zero by 2050’ to limiting the global temperature rise to 1.5°C with no or limited temperature overshoot. − With interim ABSOLUTE GHG emissions targets: • Reduce 72.7% Scope (1 + 2) by FY 2032 • Reduce 27.5% Scope 3 by FY 2031 − Green
Slide 31: ESG Commitments & Targets
ESG Commitments & Targets ESG Commitments − To be in Top 10 companies of the world in ESG benchmarking of electric utility sector by FY25 − To purchase RE power at AEML 60% by FY27 (committed under SLB framework) & 70% RE sources by FY2030 − To reduce Emission intensity [tCO2e/ EBITA] @ AEML by 40%
Slide 32: ESG Ratings, Awards and Recognition
ESG Ratings, Awards and Recognition ESG Commitments ESG Ratings AESL’s Rating Ranking of 86%, with consistent ranking above Electric & Gas Utilities industry average [911 companies] ESG Risk Rating of ‘High Risk’ with a score of 31.5*, better than global Electric Utility Industry average of 32.1; Pa
Slide 33: Compelling Investment Case
Compelling Investment Case − Evolved and stable regulatory regime has enabled growth of AESL’s business into multiple segments (Transmission, Favorable Industry Distribution, Smart metering, District cooling) within energy domain Landscape − Focus on Grid reliability, consumerism and shift to RE bas
Slide 34: Annexures
Annexures 34-37 Regulatory Framework 38 Credit Ratings 39 Smart Metering – Key Benefits 40-43 Project Level Details – Asset Portfolio 44 AESL - Board and Management Team 34
Slide 35: Stable Regulatory Framework: Regulated EBITDA
Stable Regulatory Framework The Electricity Act 2003 RAB Based Transmission and Distribution Assets Fixed Tariff Transmission Assets Section 62 - RAB Assets - Multi Year (5 yr) Tariff Section 63 – Fixed Tariff Method – License Period Basis Services Costs (Pass- O&M Expenses Power Procurement All oth
Slide 36: Payment Pooling Mechanism Reduces Counterparty Risk
Payment Pooling Mechanism Reduces Counterparty Risk Regulatory landscape CERC and SERC established & predictable in maintaining and defining tariffs • CERC, MERC and other ERCs have a Long-Standing History • CERC and state regulatory body (e.g., MERC, RERC) MYT Determination of Maintaining and Defin
Slide 37: AEML: Robust Regulatory Framework
AEML: Robust Regulatory Framework AEML as an integrated utility has touchpoints across different regulatory bodies State Centre State Atomic Department Regulations / laws / Department State Nodal Electricity Ministry Energy MNRE CEA of Atomic CERC policies of Energy Agency Regulatory of Power Regula
Slide 38: AEML: Operating in a stable and evolved regulatory framework
AEML: Operating in a stable and evolved regulatory framework with predictable & robust returns Tariff is based on assured return on capital model + pass-through of costs + efficiency linked incentives Incorporated in 1999, MERC is the Normative costs Assured return on Efficiency linked Regular True
Slide 39: AESL and AEML: Credit Ratings
AESL and AEML: Credit Ratings International – ATSOL Obligor Group (Transmission business) (Reg S/ 144A) SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable AESL India Ratings AA+ Negative AESL ICRA A1+ - Moody’s Dollar Bond
Slide 40: Smart Metering: Key Benefits
Smart Metering: Key Benefits Technology transformation Real time information Two-way communication Key technology towards the Measures electricity consumption & Between the meter and the power utility through transformation of power sector in India communicates the consumption reading to the cellula
Slide 41: AESL's Operational Asset Portfolio as of Q2FY24 (1/2)
AESL’s Operational Asset Portfolio as of Q2FY24 (1/2) Adani Energy Solutions Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP Bikaner ATIL MEGPTCL AEML MUL ATBSPL ATRL RRWTL CWRTL FBTL GTL APTL STL Khetri Discom Discom MTSCL WTPL 8/9/10 Mundra
Slide 42: AESL's Operational Asset Portfolio as of Q2FY24 (2/2)
AESL’s Operational Asset Portfolio as of Q2FY24 (2/2) Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% Obra-C Lakadia WRSS – XXI Jam Karur Khambaliya WKTL Transmission Badaun Banaskantha (A) Obra Lakadia Lakadia - Jam Warora Karur Banaskantha Bhuj Kham- Kurnool Transmi baliya ssion Proje
Slide 43: AESL's Under-construction Asset Portfolio as of Q2FY24
AESL‘s Under-construction Asset Portfolio as of Q2FY24 Adani Energy Solutions Limited Since AESL’s evolution its Transmission Network 100% 100% 100% 100% 100% 100% 100% 100% 100% (ckms) has grown 3.5x and expanded into Distribution businesses Kharghar MP AEMIL Khavda- KPS-1 STSL NKTL WR-SR KTL - Vik
Slide 44: AESL's Smart Metering Under-construction Portfolio as of Q2FY24
AESL‘s Smart Metering Under-construction Portfolio as of Q2FY24 Adani Energy Solutions Limited Single project 100% 100% 100% 100% 100% 100% 100% 100% 100% { BEST APDCL APSPDCL – APSPDCL – APEPDCL APCPDCL MSEDCL MSEDCL NBPDCL Phase 1 Phase 2 BEST Smart Adani Energy Adani Energy Adani Energy Adani Ene
Slide 45: AESL: Board and Management Team
AESL: Board and Management Team Managing Strong Sponsorship Independent Directors Director Mr. Gautam S. Adani Mr. Rajesh S. Adani Mr. Anil Sardana Mr. K. Jairaj Dr. Ravindra H. Mrs. Meera Shankar Ms. Lisa MacCallum (Chairman) (Director) (MD, AESL) Dholakia Skilled and Experienced Management Team Mr
Slide 46: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Energy Solutions Limited (together with its subsidiaries, the “Company” or “AESL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 47: Thank You
MUSHKILON KI adani 4 NAHI SUNTE, HUM KARKE DIKHATE HAIN, #HumKarkeDikhateHain @ adani Energy Solutions Thank You
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