Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Presentation (August 2022)
49 slides from Adani Green Energy's investor presentation, August 2022
Slide 1: Adani Green Energy Limited Investor Presentation
Adani Green Energy Limited Investor Presentation August 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 Project Management & Assurance Group (PMAG) 3c O&M Capabilities 3d Capital Management Philosophy 4 AGEL - ESG 5 AGEL - I
Slide 3: Adani Portfolio - Overview
01 Adani Portfolio - Overview STRICTLY CONFIDENTIAL
Slide 4: Adani: A World Class Portfolio
Adani: A World Class Portfolio ~USD 170 bn1 Combined Market Cap Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (72.3%) (60.5%) (73.9%) (65.6%) (100%) (100%) AGEL ATL APSEZ AE
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) 132% 36% 18% 12% 3x 5x 3x 25% 1.4x 6% 4% 25% Industry APSEZ Industry AGEL Industry ATL Industry AGL 2014 972 MMT 113 MMT 20
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 60.5% 19.7% 19.8% Public Shareholders 50% 50% 100 % 100 % 100 % AGE23L 1 Other Operating Locked-in Under Execution Near construction 2,353 MW 3,447 MW 11,401 MW 3,233 MW portfolio: 20,434 MW Large 5,800 MW – Operational 2 89% Resource and 12 resource-rich states Renewab
Slide 11: AGEL: Leading Renewable Energy player in India
AGEL: Leading Renewable Energy player in India Pan India Presence 1 3.5x Locked-in Growth Renewable Capacity (in MW) 20,434 Operational Under exec../ Near Const. Wind Solar 5,800 MW – Operational 3.5x Solar-Wind Hybrid 11,401 MW – Under execution 130 3,233 MW – Near Construction 2 5,800 395 20,434 M
Slide 12: Growth and Cash Generation capability Derisked
Growth and Cash Generation 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 (for locked-in portfolio of
Slide 13: 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 14: Adani Green Energy Limited (AGEL): Business Philosophy
03 Adani Green Energy Limited (AGEL): Business Philosophy STRICTLY CONFIDENTIAL
Slide 15: 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 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 648 MW
Slide 16: 3a. Strategic Sites & Evacuation
3a. Strategic Sites & Evacuation
Slide 17: Construction ready Strategic Sites with high resource potential (40GW)
Construction ready Strategic Sites with high resource potential (40GW) Identified high resource potential sites of ~2,00,000 acres in Rajasthan and Gujarat Rajasthan and Connectivity granted for entire Gujarat Clusters ~2,00,000 Acres Of Land ~2,00,000 acres portfolio. Predominantly Owned By For pla
Slide 18: 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 19: Case Study: Renewable cluster deployment of up to 15 GW 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 20: 3b. Project Management & Assurance Group (PMAG)
3b. Project Management & Assurance Group (PMAG)
Slide 21: 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 22: PMAG – Impact & Value additions
Project Management & Assurance Group (PMAG) – Impact & Value additions Effective Seamless Project Delivery on Support Decision Managing Priorities Project Governance Structure Time, Cost and returns Making • Effective Project Management • Integrated Project Schedules ( Primavera) teams • Capex basel
Slide 23: Demonstrated Project Execution Capability
Demonstrated Project Execution Capability Project Management & Assurance Group (PMAG) for control over end-to-end project execution – Team of 90 professionals having hands-on experience of 2,000+ man-years of complete project management cycle – Capacity addition of 925 MW in FY21 during COVID19 pand
Slide 24: 3c. O&M Capabilities
adani Renewables 3c. O&M Capabilities
Slide 25: Technology Enabled Operational Excellence
Technology Enabled Operational Excellence – AGEL operating assets currently spread across 12 states. 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 Central office →
Slide 26: 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 27: 3d. Capital Management Philosophy
3d. Capital Management Philosophy
Slide 28: Replicating Adani Business Model: Capital Management Philosophy
Replicating Adani 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 lifecyc
Slide 29: 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 30: 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 31: 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 32: Adani Green Energy Limited (AGEL): ESG
04 Adani Green Energy Limited (AGEL): ESG STRICTLY CONFIDENTIAL
Slide 33: AGEL : Robust ESG Assurance Framework
AGEL : Robust ESG Assurance Framework Guiding principles UN Sustainable India Business & IFC E&S United Nations Green Bond Guiding Development Goals SBTi Biodiversity Performance Policies principle Global Compact Principles (UN SDGs) Initiative (IBBI) Standards Disclosure Standards TCFD GRI Standard
Slide 34: AGEL: Update on ESG Program
AGEL: Update on ESG Program Guiding Principles Disclosure Standards ✓ TCFD: Supports TCFD and the annual ESG Report enumerates ✓ Signatory to United Nations Global Compact (UNGC): Submitted first progress on Governance; Strategy; Metrics and Targets and Risk Communication on Progress (COP) for FY21
Slide 35: AGEL: Update on ESG Program
AGEL: Update on ESG Program Key Updates on Environment & Social initiatives – Q1 FY23 ➢ Bio-diversity management ➢ Pollution control & GHG emission reduction ✓ Adopted a Technical Standard, developed in association with CII following IBBI Principles and IUCN Standard, to ensure ‘No Net Loss’ of biod
Slide 36: AGEL– Adopted UN Sustainable Development Goals
AGEL– Adopted UN Sustainable Development Goals United Nations Sustainable Our Key Social Initiatives mapped to UNSDG Development Goals 2030 Education o Armchairs, round table, water purifier, LED television provided for school Karnataka 4. Quality Education children at Kappekeri village, Karnataka.
Slide 37: Adani Green Energy Limited (AGEL): Investment Case
05 Adani Green Energy Limited (AGEL): Investment Case STRICTLY CONFIDENTIAL
Slide 38: 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 39: 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 40: Thank You
Thank You
Slide 41: Appendix: Operational & Financial Highlights
Appendix Operational & Financial Highlights
Slide 42: AGEL– Operational Performance
AGEL– Operational Performance Operational Capacity (MW AC) CUF % (AC) Solar Wind Hybrid Solar Wind Hybrid 47.0% 5,800 43.4% 5,410 - 1 390 3,470 647 647 30.8% 26.7% 26.8% 26.5% 2,545 23.8% 1 22.6% 22.5% - 497 - 397 4,763 4,763 2,973 2,148 FY20 FY21 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY23 Plant Availabili
Slide 43: AGEL– Financial Performance
AGEL– Financial Performance (All figures in INR Crore) Revenue from Power Supply EBITDA from Power Supply 1 3,783 3,530 2,419 2,207 2,065 1,859 1,328 1,265 FY20 FY21 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY23 EBITDA from Power Supply (%) Cash Profit 2 92% 92% 1,854 89% 91% 1,250 680 529 FY20 FY21 FY22 Q1 F
Slide 44: Appendix: Asset Level Details
Appendix Asset Level Details
Slide 45: Asset Level Details – Operational
Asset Level Details – Operational Project Name / Contracted Capacity Capacity Counterparty PPA SPV Type Tariff COD Location (AC) (DC) Name Term AGETNL Solar 216 260 7.01 Mar-16 TANGEDCO 25 RSPL Solar 72 86 7.01 Feb-16 TANGEDCO 25 AGETNL KREL Solar 72 86 5.76 Mar-16 TANGEDCO 25 KSPL Solar 216 260 5.1
Slide 46: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Project Name / Contracted Capacity Capacity Counterparty PPA SPV Type Tariff COD Location (AC) (DC) Name Term PNCEL Punjab Solar 20 21 8.70 Mar-21 PSPCL 25 PNREL Punjab Solar 10 11 8.65 Feb-21 PSPCL 25 KNSSEPL Karnataka Solar 5 6 4.36 Oct-21 GESCOM 25 KNIVS
Slide 47: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Project Name / Contracted Capacity Capacity Counterparty PPA SPV Type Tariff COD Location (AC) (DC) Name Term AGEL – Lahori Madhya Pradesh Wind 12 12 5.92 Mar-16 MPPMCL 25 AWEGPL Gujarat Wind 30 30 4.19 Mar-17 GUVNL 25 AWEGPL Gujarat Wind 18 18 3.46 Mar-17
Slide 48: Asset Level Details – Under execution
Asset Level Details – Under execution Project Name / Contracted Capacity Capacity Counterparty PPA SPV Type Tariff Location (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 4,667 6,767 2.42 SECI 25 Various SPVs Rajasthan/ Gujarat Solar+ Mfg 1,250 1,813 2.54 SECI 25 AREEL Gujarat Solar
Slide 49: Asset Level Details – Near Construction
Asset Level Details – Near Construction Project Name / Contracted Capacity Capacity Counterparty PPA SPV Type Tariff Location (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 2,083 3,020 2.92 SECI 25 Various SPVs Rajasthan Solar 100 142 2.80 Ultratech 25 ASEJSPL Rajasthan Solar 600 900
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