Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Debt Investor Presentation (July 2016)
35 slides from Adani Energy Solutions's debt investor presentation, July 2016
Slide 1: Adani Transmission Limited Roadshow Presentation
Strictly Private and Confidential Adani Transmission Limited Roadshow Presentation July 2016
Slide 2: Legal Disclaimer
Legal Disclaimer This document is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the United States, except pursuant
Slide 3: Offering Summary
Offering Summary Issuer: Adani Transmission Limited (“ATL” or the “Company”) Issue: Fixed Rate Senior Secured Notes (issued as per RBI ECB Guidelines) Distribution Format: Rule 144A / Reg S Issuer Rating: Fitch: BBB- /Stable; S&P: BBB- /Stable ; Moody’s: Baa3 /Stable Expected Issue Rating: Fitch: BB
Slide 4: Executive Summary
Executive Summary • Adani Group, led by Mr. Gautam Adani, is one of India’s largest infrastructure conglomerates with leadership across several Adani Group and infrastructure verticals including ports, resource mining and logistics, power generation and power transmission Company Overview • ATL is o
Slide 5: A. Adani Group and Company Overview
A Adani Group and Company Overview B ATL – Investment & Credit Highlights C Investment Grade Rating D Appendix A. Adani Group and Company Overview Picture : AC Yard Mohindergarh
Slide 6: Adani Group: One of India's Leading Infrastructure Conglomerates
Adani Group: One of India’s Leading Infrastructure Conglomerates Adani Promoter Group Mr. Gautam Adani, Group founder First generation entrepreneur, one of the leading businessmen of India with 30+ years experience Professionally and Independently managed verticals led by industry veterans 75% 56% 6
Slide 7: Metamorphosis of the Adani Group
Metamorphosis of the Adani Group Founded in 1988, Adani Group’s growth has been interwoven into India’s growth story Resources India’s largest coal importer for c. 11 yrs Accounts for over 33% of India’s coal imports in FY16 India’s most successful mine developer and operator Trading Business
Slide 8: Adani Transmission Limited: Company Overview
Adani Transmission Limited: Company Overview Asset Location Key Asset Highlights • Mundra – Dehgam & Mundra – Mohindergarh lines servicing the One of the Largest Private Sector Transmission Companies Western grid & Northern grid • Tiroda lines connecting mine-mouth power plants to demand rich wester
Slide 9: B. ATL – Investment & Credit Highlights
A Adani Group and Company Overview B ATL – Investment & Credit Highlights C Investment Grade Rating D Appendix B. ATL – Investment & Credit Highlights Picture : Tiroda-Koradi-Akola-Aurangabad Transmission Network 8
Slide 10: ATL – Investment & Credit Highlights
ATL – Investment & Credit Highlights 4 1 Robust Compelling Structural Industry Protections Fundamentals Mature Stable Operational Regulatory Assets Framework 3 2 9
Slide 11: ATL – Investment & Credit Highlights
ATL – Investment & Credit Highlights 4 1 Robust Compelling Structural Industry Protections Fundamentals Mature Stable Operational Regulatory Assets Framework 3 2 10
Slide 12: India: Attractive Macro Environment
1 India: Attractive Macro Environment Strong macroeconomic growth expected to be supported by stable inflation and decreasing interest rates Macro Growth Gaining Momentum(1) Stabilizing Inflation(2) Interest Rates Trending South(2) GDP Growth (%) 8.2 Indian Govt Bond (10yrs) 8.0% CPI WPI 16% RBI cut
Slide 13: Indian Power Sector: Compelling Fundamentals
1 Indian Power Sector: Compelling Fundamentals Low Per Capita Power Consumption… …Resulting In Increased Investments Energy Consumption Per Capita (2013)(1) (kWh / year) Low per capita power consumption and continued power deficits 15,520 driving significant capacity additions 12,987 10,067 7,836
Slide 14: Strong Growth Potential in Transmission Sector
1 Strong Growth Potential in Transmission Sector Private Sector Participation on the Rise …Resulting In Sustained Growth Potential Govt. 100% 100% 100% 100% 99% 97% 94%(1) Robust transmission infrastructure required for Private - - - - 1.2% 3.3% 6.0%(1) • seamless and efficient power availability
Slide 15: ATL – Investment & Credit Highlights
ATL – Investment & Credit Highlights 4 1 Robust Compelling Structural Industry Protections Fundamentals Mature Stable Operational Regulatory Assets Framework 3 2 14
Slide 16: Well Defined Regulatory Framework
Well Defined Regulatory Framework 2 Overview of Regulatory Bodies Governing the Sector Ministry of Power (MoP) Planning, policy formulation, processing of projects for investment decisions, monitoring implementation of projects, and enactment of legislation in regard to power generation, transmissio
Slide 17: Established & Predictable Tariff Policy Framework
Established & Predictable Tariff Policy Framework 2 CERC and MERC have a Long Standing History of Maintaining and Defining Tariffs CERC and state regulatory body (e.g., MERC) determines return on assets (ROA) the framework for operations & maintenance costs Obligor Group assets fall under th
Slide 18: Fixed Return With Full Cost Pass-through for Building Block Assets
Fixed Return With Full Cost Pass-through for Building Block Assets 2 Asset Life of more than 35 years and license validity of 25 years with license renewal option of 10 years Project cost has to be approved by the regulator to calculate the tariff Obligor Group assets fall under this mechanism
Slide 19: Payment Pooling Mechanism Reduces Counterparty Risk
Payment Pooling Mechanism Reduces Counterparty Risk 2 Payment pooling mechanism substantially reduces any counter party default risk Payment Pooling Mechanism Tariffs for all transmission licensees are collected by either the CTU (for Inter-state Transmission System) or the STU (for Intra-state Sy
Slide 20: Credit Protection Mechanism in License
Credit Protection Mechanism in License 2 Embedded Credit Support Mechanism in Transmission License CERC Assets: Revolving L/C for 105%/210% of average monthly billing by State/ private utilities Letter of credit & bank guarantee to CTU/STU MERC Assets: Revolving L/C for 100% and BG for 300% of a
Slide 21: ATL – Investment & Credit Highlights
ATL – Investment & Credit Highlights 4 1 Robust Compelling Structural Industry Protections Fundamentals Mature Stable Operational Regulatory Assets Framework 3 2 20
Slide 22: Mature Operational Assets
Mature Operational Assets 3 Long Life of Assets and Contracts 1 Completed Assets with Minimal Ongoing Maintainance Mundra – Dehgam Mundra – Mohindergarh Tiroda – Warora Tiroda – Aurangabad Regulator CERC CERC MERC MERC License Period 25 years + 10 years 25 years + 10 years 25 years + 10 years 25 yea
Slide 23: ATL – Investment & Credit Highlights
ATL – Investment & Credit Highlights 4 1 Robust Compelling Structural Industry Protections Fundamentals Mature Stable Operational Regulatory Assets Framework 3 2 22
Slide 24: Ring-fenced Obligor Group With Documented Accession Framework
Ring-fenced Obligor Group With Documented 4 Accession Framework Noteholders Adani Transmission Limited (Issuer) 100% 100% 100% 100% 100% 100% 100% 74% / 49% (1) ATIL MEGPTCL STL RRWTL CWTL ATRL NKTL ATSCL & MTSCL Mundra - Dehgam North Raipur - Mundra - Sipat - Chhattisgarh - Suratgarh- Karanpura Mar
Slide 25: Structural Protection to Debt Investors
4 Structural Protection to Debt Investors No capex for new projects to be undertaken in the Obligor Group No Greenfield Capex outside of Obligor Group limited by LRA provisions Risk New projects can be added to Obligor Group only after they become operational, Cash Waterfall Mechanism thus eli
Slide 26: ATL – An Excellent Investment Opportunity
ATL – An Excellent Investment Opportunity Compelling Industry Strategically important sector in one of the world’s fastest growing economies Fundamentals Significant generation capacity addition expected to drive sustained growth Well defined regulatory framework with established & predictable
Slide 27: C. Investment Grade Rating
A Adani Group and Company Overview B ATL – Investment & Credit Highlights C Investment Grade Rating D Appendix C. Investment Grade Rating Picture : Mundra – Mohindergarh Transmission Line
Slide 28: Investment Grade Rating
Investment Grade Rating Ratings BBB- / Stable BBB- / Stable Baa3/ Stable Stable cash flows driven by a favorable regulatory ATL’s credit profile benefits from a stable and ATL's regulated transmission business is environment, the company's power transmission favourable regulatory environment.
Slide 29: D. Appendix
A Adani Group and Company Overview B ATL – Investment & Credit Highlights C Investment Grade Rating D Appendix D. Appendix India’s First Private HVDC Utility 28
Slide 30: A. Financial Statements Summary
A. Financial Statements Summary 29
Slide 31: Detailed Profit and Loss Summary
Detailed Profit and Loss Summary (US$ mm) YE March 31 FY16 FY15 FY14 Comments Revenue from Operations 336 225 81 Revenue from operations increased by 59.8% for FY16 primarily as a result of Set 3 of MEGPTCL starting commercial Other Income 11 1 1 operations in March 2015 and an increase in incenti
Slide 32: Detailed Balance Sheet Summary
Detailed Balance Sheet Summary (US$ mm) YE March 31 FY16 FY15 FY14 Comments Fixed Assets 1,532 1,679 1,585 Obtained a loan of ~US$31mm in April 2016 from Aditya Birla Finance Limited and Long-Term Loans and Advances 15 2 275 issued 2 sets of Non-convertible debentures (NCDs) in May 2016 and June O
Slide 33: Detailed Cash Flow Summary
Detailed Cash Flow Summary (US$ mm) YE March 31 FY16 FY15 FY14 Comments Net cash from operating activities increased Net cash flow from operating activities 236.0 121.9 40.0 in FY16 primarily as a result of an increase in operating profit before working capital changes, increases in working capita
Slide 34: Capitalization and Debt Maturity Profile
Capitalization and Debt Maturity Profile Capitalization as on 31-Mar-2016 Debt Maturity Schedule as on 31-Mar-2016 (3) (US$ mm) As on 31-Mar-2016 (USD mm) Equity Share capital 168.0 Reserves and surplus 240.0 Total shareholders’ funds 408.0 Long-term Borrowings(1) 880.9 Short-term Borrowings 441.1 4
Slide 35: Resources Logistics Energy
o-oo Resources Logistics X" Energy
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