Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Presentation (March 2022)
50 slides from Adani Green Energy's investor presentation, March 2022
Slide 1: Adani Green Energy Limited Equity Presentation
Adani Green Energy Limited Equity Presentation March 2022
Slide 2: Table of Contents
Table of Contents 1 Adani Portfolio – Overview 2 Adani Green Energy Limited – Company Profile 3 Adani Green Energy Limited - Business Philosophy 3a Strategic Sites & Evacuation 3b Engineering, Procurement & Construction 3c O&M Capabilities 3d Capital Management Philosophy 4 Adani Green Energy Limite
Slide 3: Adani Portfolio - Overview
01 Adani Portfolio - Overview STRICTLY CONFIDENTIAL
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio ~USD 150 bn1 Combined Market Cap Infrastructure Portfolio Incubator Energy & Utility Transport & Logistics Direct to consumer Other businesses (74.9%) (61.3%) (74.9%) (63.8%) (100%) (44%) AGEL ATL APSEZ AWL AEL NQXT2 Renewables T&D Ports & Logi
Slide 5: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 45% 12% 132% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry AGELAdani Industry ATL Industry AGL 2014 972 MMT
Slide 6: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt • Site acquisition • Engineering & design • Redesigning the capital structure Activity • Analysis & market • Life cycle
Slide 7: AGEL: Replicating Group's Simple yet Transformational Business Model
AGEL: Replicating Group's Simple yet Transformational Business Model Secure Sites & Connectivity Resource Assessment Construction Readiness Development ~2,00,000 acres ~40 GW potential Geotechnical studies Resource rich Sites in strategic locations 85+ Wind data locations and detailed design plannin
Slide 8: Adani & TotalEnergies Renewable Partnership
Adani & TotalEnergies Renewable Partnership Adani and TotalEnergies have a long-term partnership and commitment to expanding the renewable footprint through AGEL – Amongst Largest infrastructure and real asset platform with deep – One of the largest energy players in the world with presence across e
Slide 9: Adani Green Energy Limited (AGEL): Company Profile
02 Adani Green Energy Limited (AGEL): Company Profile STRICTLY CONFIDENTIAL
Slide 10: AGEL at a glance
AGEL at a glance Adani Family 61.3% 20% 18.7% Public Shareholders 50% 50% 100 % 100 % 100 % AGE23L 1 Other Operating 2 Locked-in Under Execution Near construction 2,353 MW 3,057 MW 5,524 MW 9,350 MW portfolio: 20,284 MW 2 Large 5,410 MW – Operational 2 89% Resource and 12 resource-rich states Renewa
Slide 11: Growth, Cash Flow and Distribution capability Derisked
Growth, Cash Flow and Distribution capability Derisked Assets contracted under 25 year PPA, 89% of contracted capacity on fully built basis is contracted to sovereign / sovereign equivalent counterparties Development risk to reduce with increasing proportion of Operating Capacity (total locked-in po
Slide 12: Track record of high growth with actual performance higher than projections
Track record of high growth coupled with actual performance consistently higher than projections AGEL has consistently outperformed projections for its operational assets Restricted Group 1 (930 MW) – EBITDA (Projected vs. Actual) Restricted Group 2 (570 MW) - EBITDA (Projected vs. Actual) Projected
Slide 13: India: A Resource Rich Country supported by Visionary Government Policy
India: A Resource Rich Country supported by Visionary Government Policy India has the highest average solar irradiation in leading markets Solar Resource: Solar Irradiation (kWh/m2) • 5,000 trillion KWh solar radiation is incident per year • Rajasthan has the highest intensity of radiation (6.4- 5.1
Slide 14: Industry backed by stable and evolved Regulatory Framework
Industry backed by stable and evolved Regulatory Framework Government target of 500 GW renewable capacity by 2030 Ministry of Power Empowered CEA Tariff Determination Methodology (MOP) Committee Participants/Statutory bodies under Electricity Act, 2003 Section 63 (Competitive bidding) – To regulate
Slide 15: Adani Green Energy Limited: Business Philosophy
03 Adani Green Energy Limited: Business Philosophy STRICTLY CONFIDENTIAL
Slide 16: Business Philosophy focusing on De-risking at every stage of project lifecycle
AGEL: Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Site and Evacuation Project Execution − ~40GW of strategic sites with geotechnical, − PMAG - Central team with deep experience resource analysis & design work done − Example: Execution of 6
Slide 17: 3a. Strategic Sites & Evacuation
3a. Strategic Sites & Evacuation
Slide 18: Approach to lock in strategic location by aggregating strategic sites
Approach to lock in strategic location by aggregating 5 year forward strategic sites Systematic Approach to identify resource rich sites in order to de-risk projects Gather Site filtering Prioritization Micro-planning State wind and Priority projects Priority solar potential from public and XX # sit
Slide 19: Construction Ready Strategic Sites with High Resource
Construction Ready Strategic Sites with High Resource Identified high resource potential sites of ~2,00,000 acres in Rajasthan and Gujarat Rajasthan and Gujarat Clusters ~2,00,000 acres (Several sites) 40 GW Connectivity granted for entire ~2,00,000 Acres Of Land portfolio. Predominantly Owned By Fo
Slide 20: Additional Sites under Development (10.5 GW)
Additional Sites under Development (10.5 GW) Future Readiness with High Resource Potential sites in Maharashtra, Karnataka, Tamil Nadu Strategy to acquire Focus States Average CUF Barren Non-agricultural Maharashtra, Karnataka Solar DC CUF ~19%-21% Waste land Tamil Nadu Wind CUF ~40%+ ✓ Wind & Solar
Slide 21: Case Study: Renewable cluster deployment in Rajasthan
Case Study: Renewable cluster deployment of up to 15 GW in Rajasthan Site Development mostly de-risked 1.7 GW Hybrid projects PPA already secured, expected commissioning by July 2022 Stakeholder Good relations established with local Management administration helping smooth execution 600 MW Hybrid pr
Slide 22: 3b. Engineering, Procurement & Construction
3b. Engineering, Procurement & Construction
Slide 23: Engineering – Core Strengths
Engineering – Core Strengths In-House Design & Value Engineering Capability to Ensure Long-Lasting World-Class Asset In-house Engineering Optimization in Layout ▪ Strong design & engineering team of more than 125 ▪ Effective module placement for full utilization of available sites. engineering profe
Slide 24: Supply Chain Management - Focused Strategic Sourcing & Process Excellence
Supply Chain Management - Focused Strategic Sourcing & Process Excellence Robust Sourcing Capabilities for On time Deliveries & Execution Centralised Procurement • Maximization of Common Opex & Services ARCs, Procurement of Bulk & Objectives Common Capex and non-ARC Services Procurement Strategy • I
Slide 25: Project Management & Assurance Group (PMAG) - End to End Project Integration
Project Management & Assurance Group (PMAG) - End to End Project Integration Bidding, Project Development & Site Scouting Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of above 2,000 man-years
Slide 26: PMAG – Impact & Value Additions
Project Management & Assurance Group (PMAG) – Impact & Value Additions Effective Seamless Project Delivery on Managing Priorities Project Governance Structure Time, Cost and returns Support Decision Making • Effective Project Management • Integrated Project Schedules ( Primavera) teams • Capex basel
Slide 27: Case Study #1: Executed 33 Projects concurrently in 12 months
Case Study #1: Executed 33 Projects (1.4 GW) concurrently in 12 months across 7 states • Portfolio of 33 projects with total capacity of 1.4 GWac Project • 100% capacity is contracted to sovereign / sub-sovereign Snapshot counterparties for 25 years 830 MW forms part of RG1 portfolio • Overall portf
Slide 28: Case Study #2: Kamuthi Solar Power 648 MW
Case Study #2: Kamuthi Solar Power 648 MW Ultra Mega Solar Power Plant Kamuthi Solar Power Plant megastructure exemplifies AGEL’s execution capabilities • AGEL developed the 648 MWac (778 MWdc), the world’s then largest solar power plant at a single location spread over 2,340 acres in Kamuthi, Tamil
Slide 29: Case Study: India's largest Hybrid Cluster Development, Procurement & Construction
Case Study: India’s largest Hybrid Cluster Development, Procurement & Construction
Slide 30: 1,690 MW Hybrid Cluster Development
1,690 MW Hybrid Cluster Development Strategically located near Jaisalmer, Rajasthan Project Snapshot Solar-Wind Hybrid Particulars Project 1 Project 2 Project 3 Total Under Implementation PPA Capacity (MWac) 390 600 700 1,690 390MW Solar (MWac) 360 600 600 1,560 600 MW Wind (MWac) 101 151 510 762 70
Slide 31: 1,690 MW Hybrid Cluster Development - Site Origination
1,690 MW Hybrid Cluster Development - Site Origination Stage 1: Site Origination fully de-risked well in advance Strategically identified Ideal location for both Solar & Wind Solar irradiation of 2000 kWh/ sqm – top 5 in India Perfect Solar potential map - Rajasthan location for Ideal Wind speed of
Slide 32: 1,690 MW Hybrid Cluster Development - Site Development
1,690 MW Hybrid Cluster Development - Site Development Stage 2: Site Development mostly de-risked ✓ Acquisition of 7,358 acres out ✓ Standardized site team Site team Land Acquisition total 10,294 acres land organization & deployment in deployment completed place ✓ Good relations established with Sta
Slide 33: 1,690 MW Hybrid Cluster Development - Execution
1,690 MW Hybrid Cluster Development - Site Development Stage 3: Execution in progress Detailed Supply Chain I II III Site Execution IV O&M readiness Engineering Management • Design Philosophy: Central Team • Strategic sourcing: Long term • Typical Common infrastructure • Learnings from past experien
Slide 34: 3c. O&M Capabilities
adani Renewables 3c. O&M Capabilities
Slide 35: Technology Enabled Operational Excellence
Technology Enabled Operational Excellence – AGEL operating assets currently spread across 12 states and 60 locations. Portfolio managed by O&M team of 630 personnel – Cluster based operating model enabling smooth governance and efficient utilization of manpower and spares: Personnel spread across Ce
Slide 36: Visibility from Portfolio Level to Module level
Visibility from Portfolio Level to Module level Solar Data Analytics – Full Solar Portfolio to one String / 22 module level visibility 1 2 3 Power vs Irradiation trend – Block (5 MW) Power vs Irradiation trend Power vs Irradiation trend 116 Inverter / 20K+ modules Portfolio (4,763 MW) Plant (50/ 20
Slide 37: 2D Map Array Layout of Solar Plant with Identified Modules
2D Map Array Layout of Solar Plant with Identified Modules ENOC allows to pinpoint the modules with low performance resulting in actionable insights 37
Slide 38: Early Identification of low performing inverters
Early Identification of low performing inverters 1 High Performing – Inverter Performance Inverter Ratio (PR) report sent to all the sites on daily Identification basis +0.35% Aug ’20 of low – Lowest performing Sep ’20 1148 1152 performing inverters are identified Inverters… and addressed. Inverter
Slide 39: Drone-based Aerial Thermography - Early detection & Correction
Drone-based Ariel Thermography - Early detection & Correction of Problem Areas Drone-based Aerial Thermography Equipment Thermography Early detection of thermal hotspots helps avoiding a major breakdown Drone-based aerial thermography to detect significant Equipment thermography of all the equipment
Slide 40: Granular CUF Waterfall to identify Generation losses
Granular CUF Waterfall to identify Generation losses Traditional Approach ENOC – Gap identification at granular level Solar 3.70% 27.53% 4.25% 0.13% 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.48% 0.00% 0.14% 27.53% 23.83% 23.83% 0.01% 0.03% P50 CUF Gap Actual CUF P50 CUF Full Ramp Grid Radiation Plant AC
Slide 41: 3d. Capital Management Philosophy
3d. Capital Management Philosophy
Slide 42: Replicating Adani Group Business Model: Capital Management Philosophy
Replicating Adani Group Business Model: Capital Management Philosophy De-risking of underling SPVs to generate and release surplus cashflows for AGEL De-risking integrated in Capital Mgmt. throughout Project Project Financing Stabilization HoldCo. Financing Post-Stabilization Phase SPV level Phase l
Slide 43: HoldCo Financing: Maiden HoldCo Green Bond Issuance by AGEL
HoldCo Financing: Maiden HoldCo Green Bond Issuance by AGEL Cash Waterfall – AGEL raised USD 750 mn through Holdco bond issuance under the 144A / Reg S format with flexibility to raise additional USD 950 mn to fund future growth. FCFE 1 – All round participation from Real Money Investors, comprising
Slide 44: Construction Financing: Fully Funded Growth through Construction Framework Agreement
Construction Financing: Fully Funded Growth through Construction Framework Agreement – AGEL has signed up Construction Framework Agreement for under construction projects for US$1.35 bn with 12 international banks – Revolving capex facility: 1,690 MW hybrid projects funded as first set of projects,
Slide 45: Takeout Financing: Established template of financing from debt capital markets
Takeout Financing: Established template of financing from debt capital markets, replicable in future Summary cashflow waterfall of Risk Mitigants in-built in RG 2 typical green bond 1 Taxes and operating expenses – Standard project finance features – Clean first ranking security Robust Structural –
Slide 46: Elimination of Liquidity Risk through Capital Management
Elimination of Liquidity Risk through Capital Management Case Study - 570 MW RG2 Bond Issuance Restricted Group-2 comprises three SPVs, having total operational capacity of 570MWac which was created for USD 362.5 mn Green Bond issuance in October 2019. This was First Investment Grade USD Bond deal o
Slide 47: Adani Green Energy Limited (AGEL): Investment Case
04 Adani Green Energy Limited (AGEL): Investment Case STRICTLY CONFIDENTIAL
Slide 48: AGEL: Key Investment Highlights
AGEL: Key Investment Highlights – World class project execution with equipment sourced from tier 1 suppliers through strategic alliances Excellent execution – Central monitoring of all project execution by Project Management & Assurance Group track record – Track record of executing projects ahead o
Slide 49: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growth prospects, and fut
Slide 50: Thank You
Thank You
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