Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — FY2020 Earnings Presentation
37 slides from Suzlon Energy's earnings presentation, Jul 6, 2020
Slide 1: Suzlon Energy Limited Investor Presentation
Suzlon Energy Limited Investor Presentation Financial Year 2020 6 July 2020
Slide 2: Disclaimer
Disclaimer • This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suzlon Energy Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Suzlon 2.0 – Sustainable Business Operations
Suzlon 2.0 – Sustainable Business Operations Fresh Equity Infusion Equity base increased Debt Restructuring of Rs 392 Cr to 771 Cr shares as completed (Infusion by Promoters, Key on 30th Jun’20 Shareholder and Others) (Face value of Rs 2 each) Significant reduction Annual Interest Substantial of Bre
Slide 4: Enhanced Government Focus
Enhanced Government Focus High Priority for Renewables and Wind Atmanirbhar Bharat Make in India 4
Slide 5: Key Updates for FY20
Key Updates for FY20 Service business delivered good performance and remain unaffected with support of lenders despite of Debt Restructuring process at Group level SE Forge developed sizeable third party and export business reducing dependence of Suzlon Fixed Cost optimisation drive resulted i
Slide 6: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 6
Slide 7: Key Highlights of Restructuring
Key Highlights of Restructuring Debt Restructuring completed with unanimous approval of secured lenders Majority of debt converted in nominal interest bearing instruments resulting in reduction of more than 70% interest burden Lenders demonstrated confidence on promoters, who will continue to
Slide 8: Key Terms of Consortium Debt Restructuring
Key Terms of Consortium Debt Restructuring Bank Debt – Bank Debt – Fund Based Non Fund Based INR 12,153 Cr INR 1,300 Cr Part A: RTL Part B: OCD Part C: CCPS Part A: NFB INR 3,600 Cr INR 4,100 Cr INR 4,453 Cr INR 1,300 Cr Term: 10 years Optionally Convertible Compulsory Continuing non-fund De
Slide 9: Key Terms of FCCB Restructuring
Key Terms of FCCB Restructuring Figures in USD million 172 15 46 Terms of New Bonds 14 Cash 1.25% -60 Coupon PIK 2.75% ~53 Crs shares Maturity June 2032 allotted at face value of Rs 2 91 Conversion each Rs 75 / USD FX Rate (USD) Conversion 36 Rs 2.61 Share Price Principal Accrued Interest Converted
Slide 10: Proforma Debt Profile: Post Restructuring
Proforma Debt Profile: Post Restructuring Post Debt Pre Status of Post Post Restructuring Components Restructuring^ Restructuring Restructuring Restructuring (at NPV) Rupee Term Loan ₹ 3,600 Cr. ₹ 3,600 Cr. Rupee Debt ₹ 12,153 Cr. Completed 0.01% OCD ₹ 4,100 Cr. ₹ 561 Cr.* US$ 187 M US$ 36 M US$ 36
Slide 11: Key Enablers for Company
Key Enablers for Company Enablers for further Non-core monetization plan for Rs 950 Crs approved by the lenders, which will deleveraging help in reducing further debt in next 2 to 5 years Option to pursue strategic sale of the equity of the Company or any of its division is permitted by the lend
Slide 12: Lower Breakeven Levels through reduced Operating & Finance Cost
Lower Breakeven Levels through reduced Operating & Finance Cost Reduction in Operating Cost^ Reduction in Finance Cost (net) -70% -21% 1,515 1,340 1,406 1,220 1,192 370 FY19 FY20 FY21e* FY19 FY20 FY21e* * FY21 numbers are budget estimate; Finance cost excludes Q1 * FY21 numbers are budget estimate i
Slide 13: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 13
Slide 14: FY20 Financial Metrics
FY20 Financial Metrics (₹ Cr.) FY20 FY19 Particulars Remarks Audited Audited Net Volumes (MW) 59 496 Net Revenue 2,933 4,978 Primarily due to low volume Gross Profit 1,060 1,980 Primarily due to revenue mix and provisions Gross Margin 36.1% 39.8% Employee Expenses 796 874 Other Expenses (net) 686 82
Slide 15: Q4 FY20 Financial Metrics
Q4 FY20 Financial Metrics (₹ Cr.) Q4 FY20 Q4 FY19 Particulars Remarks Audited Audited Net Volumes (MW) 11 147 Net Revenue 643 1,421 Primarily due to low volume Gross Profit 220 469 Gross Margin 34.2% 33.0% Employee Expenses 192 249 Other Expenses (net) 178 205 Includes partly variable cost EBITDA (P
Slide 16: Stable Service Revenue Insulated From Business Cycles
Stable Service Revenue Insulated From Business Cycles Operations and Maintenance Revenues (₹ Cr.) ~16 GW of Assets under Management (AUM) +5% ― 12.8+ GW in India; ~2.5 GW Overseas 1,995 1,907 78 ― 2nd Largest O&M player in India Power Sector, Internal 118 after NTPC Nearly 100% renewal track rec
Slide 17: Order Backlog (as on 31st March 20)
Order Backlog (as on 31st March 20) Particulars Capacity Remarks Central Auctions 789 MW All orders backed by signed PPA’s State Auctions 57 MW Wind Firm Order Book 846 MW Value of Order Book ₹ 4,341 Cr. SEFL and Service orders over and above this order book PPAs of > 700 MW, where ratification is a
Slide 18: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 18
Slide 19: Future Drivers for WTG Business growth
Future Drivers for WTG Business growth Ambitious targets of GOI for Renewable Energy in India – GOI working towards facilitative policies + ramping up infrastructure required to achieve the targets Government plans to conduct bidding of 50 GW wind capacity in next 5 years; Focus on Wind to increas
Slide 20: Strong Visibility on Growth for Indian Wind Market
Strong Visibility on Growth for Indian Wind Market Feed-in-Tariff + Captive / PSU / Retail Auction + Captive / PSU / Retail Commissioned till FY20 Estimated Commissioning by FY24 (GW) 6.0 5.5 +34% -28% 5.0 3.5 2.5 1.8 2.1 1.6 FY17 FY18 FY19 FY20 FY21e FY22e FY23e FY24e Source: MNRE Source: Internal
Slide 21: Tariffs are firming up since early Wind Project auctions in India
Tariffs are firming up since early Wind Project auctions in India Wind Auction Tariffs (Rs/Unit) 3.47 3.42 Tariff cap removed for future 2.95 2.93 2.85 2.82 2.83 2.84 auctions 2.77 2.77 2.65 2.51 2.43 2.44 SECI 1 TN Bid SECI 2 GJ Bid SECI 3 MH Bid SECI 4 NTPC SECI 5 SECI 6 GJ-2 SECI 7 SECI 8 SECI 9
Slide 22: Industry Updates
Industry Updates Govt. of India increased custom duties on import of power sector equipment from China w.e.f. August, 2020 Government of India announced support of Rs. 90,000 Cr to revive Discoms Privatisation of DISCOMs in Union Territories - to improve efficiency and attract investment Ele
Slide 23: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 23
Slide 24: Products Optimized for Market Demand
Products Optimized for Market Demand S111-140 S120-140 S133-140 2.1 MW 2.1 MW 2.8 – 3.0 MW India’s Tallest Wind Turbine India’s Largest 2.1 MW Turbine India’s Largest Rotor Diameter Proto Commissioned Aug’17 Proto Status Date Proto Status Date S120-105 Commissioned Jun ’18 S133-105 Commissioned Aug
Slide 25: Product Development
Product Development S133: New Product SB 63 – Won SKOCH award for Corporate Excellence RLMM Listing completed All Testing & Measurement completed Multiple Tower Options (Hybrid Lattice, Steel Tubular) S133 – 105 25 Enables us to reach untapped wind sites in challenging terrains
Slide 26: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 26
Slide 27: Milestones Achieved
Milestones Achieved Cumulative Market Largest fleet under Share* maintenance* of Annual Market Share (FY20) ~34% 12.8 GW in India Market leadership 2nd largest O&M ~16% maintained for over two Company in India Power 2nd highest market share decades Sector 27 FY20 Performance impacted due to on-going
Slide 28: Suzlon’s Strengths in Indian Wind Market
Suzlon’s Strengths in Indian Wind Market Full Turnkey Solution Pan India Presence Provider Technology Leadership Strong Customer Relationship Best In Class Service 25 Years Track Record Capabilities 28 End-to-end service provider with strong presence across value chain & customer segments
Slide 29: Accolades
Accolades • World’s 1st solar project quality certification for Suzlon’s 100 MW project • DNV GL confirms safety features and technical compliance • Testament of our commitment to high quality standards • Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition • For uniform profil
Slide 30: 12.8 GW Wind Energy Installations In India
12.8 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector Largest fleet under Operation and Maintenance fold in India Ranked No. 2 in Power Sector (31st Mar’20) # of Turbines MW <= 1 MW 1,678 777 >1 MW < 2 MW 4,268 5,774 =>2 MW 2,997 6,296 Total 8,943 12,847 2.0 GW • 34% - All Ind
Slide 31: Suzlon’s Global Presence (18.8 GW)
Suzlon’s Global Presence (18.8 GW) As on 31st Mar 2020 2 5 2 1 North 6 America 3 1 2.78 GW 4 Asia 3 5 13.80 GW South America Europe 0.81 GW 0.51 GW 4 South Australia Africa 0.76 GW 0.14 FGW 6 31 Suzlon’s strong relationships across regions positions it well Map not to scale. All data, information, a
Slide 32: Debt Restructuring, Financial Performance, Industry Outlook
Debt Restructuring Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement (₹ Cr.) Q4 FY20 Q3 FY20 Q4 FY19 FY20 FY19 Particulars Audited Audited Audited Audited Audited Revenue from operations 643 654 1,421 2,933 4,978 Less: COGS 423 384 953 1,874 2,998 Gross Profit 220 270 469 1,060 1,980 Margin % 34.2% 41.2% 33.0% 36.1% 39.8% Employee benefi
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ Cr.) Liabilities Mar-20 Mar-19 Assets Mar-20 Mar-19 Shareholders' Fund -10,983 -8,498 Non Current Assets Non controlling interest -59 -5 Property, plant and equipment 905 1,147 -11,042 -8,503 Right-of-use assets 143 0 Non-Current Liabilities Capital work-in-progress 110
Slide 35: Consolidated Net Working Capital
Consolidated Net Working Capital (₹ Cr.) 31-Mar-20 31-Dec-19 31-Mar-19 Inventories 2,056 2,204 2,914 Trade receivables 1,364 1,458 1,881 Loans & Advances and Others 1,423 1,587 1,806 Total (A) 4,843 5,249 6,600 Sundry Creditors 1,298 1,295 2,175 Advances from Customers 259 328 1,490 Provisions and o
Slide 36: Suzlon 2.0
Suzlon 2.0 India De-risk Focus Business Model Service Low Breakeven Expansion Higher Profits SUZLON 2.0 Focus on Component Cash-Flows Exports 36
Slide 37: Thank You
CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 THANK YOU 37