Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — 9M FY16 Earnings Presentation
33 slides from Suzlon Energy's earnings presentation, Jan 29, 2016
Slide 1: Suzlon Energy Limited 9M FY16 Earnings Presentation
Suzlon Energy Limited 9M FY16 Earnings Presentation 29th January 2016
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: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 3
Slide 4: Turnaround Year
Turnaround Year Volume (MW) Normalized EBITDA (Rs. Crs) 14.3x 75% 846 688 454 59 393 -166 9M FY15 FY15 9M FY16 9M FY15 FY15 9M FY16 75% YoY increase in volume translating to 14.3 times increase in EBITDA Increased volume and strong profitability Note: 1. All Information pertains to Suzlon Wind; 4 2.
Slide 5: 9M FY16 Performance Highlights
9M FY16 Performance Highlights 688 MW Rs. 5,083 Crs Rs. 846 Crs 74.8% y-o-y 28.5% y-o-y Margin 16.6% Volume Revenues EBITDA(2) Rs. 637 Crs Rs. 737 Crs Rs. 6,469 Crs Margin 12.5% (35.4%) y-o-y 31st Dec (YoY) EBIT(2) Net Interest Net Debt Reduction Note: 1. All Information pertains to Suzlon Wind; 5 2
Slide 6: Q3 FY16 – Another Robust Quarter
Q3 FY16 – Another Robust Quarter Key Takeaways Quarterly Trend Volume (MW) and Growth (%) 11% 13% 241% 227 256 205 256 MW – Sales Volume; 60 Normalized EBITDA (Rs. Crs.) & Margins (%) 17% - Normalized EBITDA Margin 237 293 315 15% 17% 17% 13% - Normalized EBIT Margin -224 Normalized EBIT (Rs.
Slide 7: Service Business
Service Business External Service Revenues (Rs. Crs) Growing into a sizeable & highly profitable business ― % of total revenue in Q3 FY16 : +2.6% • 21% in Q3 FY16 • 22% in 9M FY16 1,082 1,110 Annuity like cash flows 9M FY15 9M FY16 ― Non cyclical business in nature ― ~100% renewal track record
Slide 8: Result Snapshot
Result Snapshot Consolidated Suzlon Wind (Fig. Rs. Crs.) Key Comments Q3 ‟16 Q2‟16 Q3 ‟16 Q2 „16 Q3 ‟15 9M ‟16 9M ‟15 MW Sales (MW) 256 227 256 227 35 688 393 Robust Operating Profit Revenue 1,889 1,768 1,832 1,709 861 5,083 3,957 ― India volume ramp up ― Improved service profitability Normalized
Slide 9: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 9
Slide 10: Continuing With Strong Wind Order Backlog
Continuing With Strong Wind Order Backlog Order Book (Fig. in MW) 1,195 Orders Announced Post 31st Dec‟15 7% Others Independent Power Producer (IPP) 298 10% PSU Leading IPP 197.4 MW 897 Public Sector Undertakings (PSUs) 83% IPP HPCL 50.4 MW NALCO 50.4 MW Total 298 MW 31st Dec’15 Orders Announced Tot
Slide 11: FY16 YTD Order Intake More Than Doubles Full Year FY15
FY16 YTD Order Intake More Than Doubles Full Year FY15 Order Intake FY16 YTD Order Intake – Product Mix (Fig. in MW) Existing Products 2.0x 32% (S97, S95, S82 80/90 M towers) 760 68% New Products (S97-120, S111-90) 375 FY16 YTD Order Intake – Customer Mix Others 18% 15% PSU 67% FY15 YTD FY16 IPP Tra
Slide 12: Solar Foray
Solar Foray Projects Overview Size Tariff Sl. No. Site Name District (MW) (Rs/unit) 1 Wanaparthy Mahabubnagar 50 MW 5.5949 Maiden Solar Projects 2 Veltoor Mahabubnagar 100 MW 5.5949 ― Likely PPA tenure: 25 years 3 Achampet Mahabubnagar 15 MW 5.5999 ― Average Tariff: Rs 5.50 - 5.60 / unit 4 Kamared
Slide 13: Suzlon: A Strong Renewables Partner
Suzlon: A Strong “Renewables” Partner Leveraging Key Elements of Suzlon‟s Existing Value Chain End-to-End Expertise Assessment Land, Approvals, Life Cycle Asset Management Supply Chain EPC Infrastructure & PE (Service) Customer Relationships Suzlon‟s Unique (Wind + Solar) Strengths ― Execution of
Slide 14: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 14
Slide 15: Current Debt Profile
Current Debt Profile (As on 31st Dec 2015) Consolidated (Suzlon Wind + SE Forge) Debt Next 5 Year‟s Maturity Profile Particulars Amount Maturity For $ Term Debt (Fig. in $Mn)** Ballooning Rupee Term Debt (Rs. Crs) 3,103 655 Repayment FX Term Debt ($Mn) 37 Credit Enhanced Bonds 647 Mar’18 (Bullet) 8
Slide 16: Net Interest Cost
Net Interest Cost Net Interest (Fig. in Rs. Crs.) -45% Marginal Increase in QoQ Net finance Cost ― Lower finance income • Due to cash being utilized for business 421 ― Finance cost marginally higher 293 214 230 • Due to higher working capital facility utilization to cater to high volume growth Q4 FY
Slide 17: FCCB Overview
FCCB Overview FCCB Principal Value* (US$ Mn) 576 Current and Diluted No. of Shares (Crs) Current Outstanding 500 290 Pending Conversion 99 (Jul’19 series) 547 283 3 Post Full Conversion 599 257 254 Jul‟19 Series Conversion Details 29 29 Price (Per Share) Rs. 15.46 July’14 Conversions 31 Dec’15 Conve
Slide 18: Outlook with Financial Institutions Improving
Outlook with Financial Institutions Improving Strong confidence of Lenders ― Reduced debt ― Improved liquidity position Suzlon & Domestic Subsidiaries ― Turnaround in operations CARE Rating (other than SE Forge) ― Robust industry outlook Long Term Facilities BBB- Short Term Facilities A3 Additio
Slide 19: Net Working Capital
Net Working Capital Consolidated Net Working Capital (Fig. in Rs. Crs.) Inventory Pipeline built-up for Q4 FY16 418 Creditors & Others 238 Customer Adv. 180 477 Others Inventory 435 1,441 • Low customer advance ‒ Due to low order intake in Q3 ‒ Compensated by higher 546 inflow in Jan’16 30 Sep’15 In
Slide 20: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 20
Slide 21: Record Clean Energy Investments Despite Fuel Price Crash
Record Clean Energy Investments Despite Fuel Price Crash Global Clean Energy Investment Trend Majority of Investments came from emerging market (Fig. $bn) Increasing pie in generation mix 318 297 316 329 ― Capacity Added in 2015 274 272 Wind (64 GW) Solar (57 GW) CY10 CY11 CY12 CY13 CY14 CY1
Slide 22: India Renewable Market: Government Target
India Renewable Market: Government Target Government Target : 2022 Policy Incentives reinstated (AD, GBI) RE eligible investment under CSR 175 Proposed amendment in EA 2003; RE Act; Recent supreme court 15 Other judgment to lead to RGO and better RPO compliance CERC finalized forecasting & s
Slide 23: Key Strengths in India: Unique Leadership Position
Key Strengths in India: Unique Leadership Position 01 Pan India Presence • Large project pipeline across states • Presence across customer segments • >1,700 satisfied customer base • High repeat business potential 05 02 Strong Track Record Technology Leadership • 18+ years of leadership in India • I
Slide 24: US Wind Market: Multi Year PTC Extension
US Wind Market: Multi Year PTC Extension Typically a Boom & Bust Market Due to PTC Uncertainty Boom in years PTC was scheduled to expire Capacity Addition (GW) Extended till 2012 Extended till 2015 Suzlon Strengths in USA 12.9 9.9 8.5 ~15 Years of Strong Presence 5.6 6.7 4.8 1.1 ~2.7 GW of Cumul
Slide 25: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 25
Slide 26: S111: Moving Towards Bigger Turbines and Better Yields
S111: Moving Towards Bigger Turbines and Better Yields 2MW Series Evolution Higher energy yield Lower cost of energy Higher returns ~65% Increase in Energy Yield S88-80 S9X-90 S97-120 S111-90 S111-120 5.5 GW >1.5 GW >500 MW sold >300 MW sold 2016 Launch Installed till date Installed till date ~60 MW
Slide 27: Hybrid Tower: First of its Kind
Hybrid Tower: First of its Kind Hybrid Tower: Combination of Lattice And Tubular Higher hub height (120 M) at optimized cost ― Reduced LOCE due to higher AEP ― Reduced steel requirement and logistic friendly Available in S97 and S111 product suite ― S97-120 : >500 MW orders received till date, ~
Slide 28: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 28
Slide 29: Strategic Focus
Strategic Focus Renewable Energy Player • Tap huge opportunity in Solar, Wind and Wind-Solar hybrid High growth, High volume, Better margin markets only • Focus on the Indian market as well as North America, China & Latin America Reliable Technology Increasing • Continued focus on R&D aimed at reduc
Slide 30: Contents
Contents Key Performance Highlights Order Book Debt & Working Capital Industry Opportunities Products & Technology Strategic Focus Detailed Financials 30
Slide 31: Income Statement
Income Statement (Fig. in Rs. Crs.) Consolidated Suzlon Wind Q3 FY16 Q2 FY16 Q3 FY16 Q3 FY15 9M FY16 9M FY15 FY15 Revenue from operations 1,889 1,768 1,832 861 5,083 3,957 4,883 Less: COGS 1,026 941 1,021 478 2,806 2,476 3,138 Less: Employee benefits expense 200 199 193 188 580 586 747 Less: Other e
Slide 32: Consolidated Net Working Capital
Consolidated Net Working Capital (Fig. in Rs. Crs.) Particulars 31st Dec‟15 30th Sep‟15 30th Jun‟15 Inventories 2,523 2,088 1,786 Trade receivables 2,042 2,030 1,692 Loans & Advances and Others 1,709 1,679 1,640 Total (A) 6,274 5,797 5,118 Sundry Creditors 2,328 2,447 2,267 Advances from Customers 8
Slide 33: Thank You
THANK YOU S111 Turbine, USA S-111 I One of the largest commercially available rotor diameters in India 33 CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447