Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Investor Presentation (April 2022)
33 slides from Adani Energy Solutions's investor presentation, April 2022
Slide 1: Adani Transmission Limited Equity Presentation
Adani Transmission Limited Equity Presentation April 2022
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio Overview 04 09-15 About ATL 09 17-28 ATL Business Philosophy 17 30-31 Annexure – Asset Portfolio 30
Slide 3: Adani Portfolio Overview
Adani Portfolio Overview
Slide 4: Adani: A world class infrastructure & utility portfolio
Adani: A world class infrastructure & utility portfolio ~US$ 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: Adani: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Transmission Network (ckm) Port Cargo Throughput (MMT) Renewable Capacity (GW) CGD7 (GAs8 covered) 45% 21% 132% 12% 1.5x 3x 30% 3x 5x 7% 4% 25% Industry ATL Industry APSEZ Industry Adani AGEL Industry AGL 2016 320,000 ckm
Slide 6: Adani: 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 Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence planning str
Slide 7: A platform well-positioned to leverage growth opportunities in T&D business
ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Balanced pool mix Transmission Network of Transmission - Presence in 13 states Development with 31 transmission projects Transmission(3): 18,875 ckm(1) 51% of EBITDA - Central pool D
Slide 8: About ATL
About ATL
Slide 9: ATL: T&D Business Snapshot
ATL: T&D Business Snapshot Adani Family Public 74.9% Shareholders 25.1% Contracted Assets in ROA Assets in Transmission and Distribution Business Transmission Business 100%1 QIA is a strategic partner in AEML with 25.1% stake 100% 100% 100% 74.9% 26 TBCB(2) Assets Transmission HVDC MUL Discom AEML D
Slide 10: Transformational Journey with Robust Growth and Credit Discipline
ATL: Transformational Journey with Robust Growth and Credit Discipline ATL has delivered an impressive 21% CAGR in EBITDA from FY16-21, while still demonstrating credit discipline and maintaining investment grade rating Operating portfolio of 4 Acquired Mumbai Distribution • Induction of QIA as • US
Slide 11: AEML: Century old utility serving the Gateway city of India
AEML: Century old utility serving the “Gateway” city of India Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition in 2018 About Mumbai Annual Capex (Rs. Crs.) RAB (Rs. Crs.) 8,115 ~11.0% Real GDP CAGR (FY12 – 18) 6,915 5,532 ~6.0% of India’s real
Slide 12: Solid Locked-In Growth in both Transmission and Distribution
ATL: Solid Locked-In Growth in both Transmission and Distribution Transmission Project Pipeline (Rs. Bn) AEML Capex Schedule (Rs. Bn) Fully operational Project cost COD/ 23 No. of projects tariff (Rs. Bn) SCOD(2,3) 22 (Rs. Bn)(1) 19 17 Operating ROA COD: Aug’12- Assets 4 projects 107 18.5 Mar’15 Ope
Slide 13: Size of Transmission Opportunity for Private Players is ~US$ 30 bn
ATL: Size of Transmission Opportunity for Private Players is ~US$ 30 bn worth projects over FY21-30 Renewable penetration to further boost requirement for transmission Attractive Industry Opportunity backed by strong policy support infrastructure strengthening – Mandatory competitive bidding introdu
Slide 14: Distribution Privatization Opportunity and Other Drivers
ATL: Distribution Privatization Opportunity and Other Drivers – Power distribution is one of the largest consumer facing sectors in the country. 96.7% of ~270 mn households in India are connected to the grid. – Discoms in India have been primarily owned and operated by state governments – Government
Slide 15: Regulated EBITDA: Evolved and Stable Regulatory Regime
ATL: Attractive Industry Opportunity supported by an Evolved and Stable Regulatory Regime EA 2003 ROA Distribution TBCB (AEML) Section 62 (ROA) Tariff Method - Multi Year (5 yr) Tariff Section 63 (TBCB) Tariff Method – License Period Basis Services O&M Power Procurement All other Costs Expenses Cost
Slide 16: ATL Business Philosophy
ATL Business Philosophy
Slide 17: Business Philosophy focusing on De-risking at every stage of project lifecycle
ATL: Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Route alignment on topographic maps to optimize route & − Complex projects experience: Completed HVDC project identify key parameters (~1000
Slide 18: Project Construction and Development Expertise
ATL: Project Construction and Development Expertise − ATL remains competitive at bidding stage due to scale benefits thus having Scalability Potential in Future Project market share of 35% in TBCB bids in FY21(1) Origination − Availability of large talent pool and in-house capabilities provides plat
Slide 19: Structure & processes developed to ensure seamless completion of projects
ATL: Structure & processes developed to ensure seamless completion of projects Tightly Woven & Interlinked Disciplines With Proven Strengths, Enabling delivery of Large Projects from Plan to Operational Readiness Execution focus Route Identification and Project Planning and Contracting Methodology P
Slide 20: Execution Excellence, Operational Excellence
ATL: Technology enabled O&M Excellence Design and Technology Excellence Project Excellence O&M Excellence • In-house design team capable of designing • • Completed HVDC project (~1,000 kms) In-house team with vast O&M experience Execution Excellence towers using software tools like PLS Tower and wit
Slide 21: Shifting from Time-based Maintenance to Reliability Centered Maintenance
ATL: As a matured O&M player, shifting from Time-based Maintenance to Reliability Centered Maintenance Time-based Maintenance Preventive Maintenance Condition-based Reliability Centered (TBM) (PM) Maintenance (CBM) Maintenance (RCM) • Emergency restoration • SAP Integration for • Performing key test
Slide 22: O&M Philosophy focused on Reliability, Longevity, Sustainability & Safety
ATL: O&M Philosophy focused on Reliability, Longevity, Sustainability & Safety Average Availability Analytical dashboard 99.9% 99.8% 99.8% 99.9% 99.6% Asset Integration in SAP Reliability Health Index formulation FY18 FY19 FY20 FY21 YTD Dec 21 Longevity • Industry-leading ENOC Benefit System Availab
Slide 23: AEML Business philosophy: Sustainability, Reliability and Consumer Focus
AEML Business philosophy: Sustainability, Reliability and Consumer Focus (Affordability & Responsiveness) Reliability Affordability & Responsiveness • Pioneer in adoption of advanced technologies • Consumer-centric service delivery model Emerging • Only utility with integrated GIS, WMS, OMS, CRM a
Slide 24: AEML: Reliability Demonstrated through Resilient business model
AEML: Reliability Demonstrated through Resilient business model COVID-19 Grid Failure Lights Out Event Complete Lock-down in Mumbai Unprecedented Mumbai power outage on COVID Solidarity Event - 9 pm 9 minutes on 12th October, 2020 5th April 2020 Challenges Challenges Challenges • Occupational Health
Slide 25: Capital Management Philosophy to achieve growth at scale with capital discipline
ATL: Capital Management Philosophy to achieve growth at scale with capital discipline ATL 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
Slide 26: Transformational Capital Management Plan in AEML resulting in value unlocking
ATL: Transformational Capital Management Plan in AEML resulting in value unlocking Capital structure Elongated maturity High quality stable Diversified and deep Fully funded long term consistent with reflecting perpetual nature cashflow profile to ensure investor base, to provide capex program under
Slide 27: Case Study: ATL Business Philosophy Demonstrated in USPP Assets
Case Study: ATL Business Philosophy Demonstrated in USPP Assets USPP: 30 years USD notes (USD 400 mn) issued by restricted group of 7 subsidiaries of ATL (2,084 ckm network) with fixed coupon and amortizing structure matching the concession period & revenue profile of the issuer companies Case study
Slide 28: ATL: Compelling Investment Case
ATL: Compelling Investment Case − Significant growth opportunities in Transmission and Distribution with favourable government policy and strong T&D Favorable Industry infrastructure demand with increasing shift to renewable energy Landscape − Evolved and stable regulatory regime conducive for infra
Slide 29: Annexure – Asset Portfolio
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Annexure – Asset Portfolio 14
Slide 30: ATL's Operational Asset Portfolio as of Feb'22
ATL’s Operational Asset Portfolio as of Feb’22 Adani Transmission Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% AEML MUL ATSCL & WTGL, PPP Bikaner ATIL MEGPTCL ATBSPL APTL ATRL RRWTL CWRTL STL FBTL Khetri GTL Discom Discom MTSCL WTPL 8/9/10 Mundra - Tiroda -
Slide 31: ATL's Under-construction Asset Portfolio as of Feb'22
ATL‘s Under-construction Asset Portfolio as of Feb’22 Adani Transmission Limited Since ATL’s evolution its Transmission 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Network (ckt km) has grown 3.4x and Obra-C WRSS – Lakadia Jam Kham- MP Kharghar NKTL Banas- WKTL HVDC# Khavda Karur expanded
Slide 32: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given solely fo
Slide 33: Thank You
adani Transmission adani Transmission Thank You -¢
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