Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q1 2024 Earnings Presentation
41 slides from Renew Energy Global's earnings presentation, Aug 21, 2023
Slide 1: Q1 FY24 Earnings Review
Q1 FY24 Earnings Review August 21, 2023 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by ReNew Energy Global, the markets in which ReNew Energy Global operates and ReNew Energy Global
Slide 3: Agenda
Agenda 01 Highlights 02 Financial Highlights 03 Sustainability and ESG 04 Guidance 05 Appendix 3
Slide 4: 2nd Anniversary of NASDAQ Listing
2nd Anniversary of NASDAQ Listing ~47% Growth in Operating MW ~28% Growth in Portfolio 10 8.4 GW 15 13.7 GW 10.7 GW 5.7 GW 10 5 5 0 0 Q1 FY22 Q1 FY24 Q1 FY22 Q1 FY24 Adjusted EBITDA Increased by Run Rate EBITDA Increased by 41% ~60% 80 100 INR 89-94 bn 60 INR 60.4 bn 75 ▪ DSO improved from 262 days
Slide 5: Highlights Since the Last Call
Highlights Since the Last Call Robust Access to Affordable Capital Project Execution Progressing Well • 5 GW MoU signed with Gentari* • 415 MW completed in Q1 FY24 • 403 MW 49% JV with Gentari, Proceeds • Module Manufacturing Plant Started received Operations • MoU signed with PFC and REC for ~US$8
Slide 6: Asset Recycling Strategy Delivering Lower Cost Equity
Asset Recycling Strategy Delivering Lower Cost Equity INR bn Overview of remaining capex and sources of funding for 13.7 GW ▪ MoU signed with PETRONAS’ clean energy subsidiary, Gentari, for JV partnership on 5 GW of projects INR 220 bn INR 165 bn Asset recycling enhances - INR 240 bn * - INR 180 bn
Slide 7: Favorable Market Enables Project Wins and Improved Returns
Favorable Market Enables Project Wins and Improved Returns Pace of Auctions GW 50 ▪ ~3.5 GW (RE capacity) won in 5 auctions in YTD FY24 45 40 ▪ IRRs expected to be at the high end of, or above, our 35 targeted range, due to lower competition and complex 30 25 auctions 20 15 ▪ ~10x increase in auctio
Slide 8: Execution on Track to Meet FY24 Capacity Addition Guidance
Execution on Track to Meet FY24 Capacity Addition Guidance Peak Power Project ▪ ~415 MW commissioned during Q1 FY24 (205.3 MW Wind/209.3 MW Solar) ▪ Expected IRRs in line with targets ▪ MW commissioned relate to B2B projects ▪ ~300-500 MW expected to be completed in Q3 FY24 Round the Clock (RTC) Pow
Slide 9: Significant Step Towards Securing Module Supplies
Significant Step Towards Securing Module Supplies Jaipur Solar Module Plant Commences Operations Jaipur Plant: Module Production Facility ▪ 4 GW module plant located in Jaipur fully commissioned; produces ~2 GWac modules ▪ Construction for 2.4 GWdc Module and Cell underway; expected to be start prod
Slide 10: Financial Highlights
02 Financial Highlights 10
Slide 11: Pioneering Debt Funding for India’s RE Industry
Pioneering Debt Funding for India’s RE Industry INR 320 bn (US$3.9 bn) MoU with REC ▪ Signed MoUs worth ~US$7.8 bn with PFC and REC for project debt funding: ▪ Provides clear visibility for debt funding for large projects improving timelines ▪ Key terms indicate cost is among the lowest among Indian
Slide 12: Q1 FY24 Operating Performance
Q1 FY24 Operating Performance ▪ Total Portfolio Key metrics (INR bn) $108 mn ▪ Total Portfolio of ~13.7 GW(1) (commissioned and 89.3 Improvement in committed) , 6.3% increase YoY working capital ▪ ~8.4 GW commissioned(1) 69.2 due to receivables ▪ ~5.3 GW committed(1) 55.1 62.0 ▪ 99% of portfolio has
Slide 13: $227 mn Adj. EBITDA for Q1 FY24
$227 mn Adj. EBITDA for Q1 FY24 Adjusted Q1 FY24 Adjusted YoY % growth Q1 FY24 Q1 FY23 Adj Million Q1 FY23 Adjustments Q1 FY24 Comments Vs (INR) (INR) (USD) (INR) (USD) (INR) (USD) Q1 FY24 Adj Revenue from contracts with 22,174 21,250 259 - - 21,250 259 -4% customers Carbon credit sales lower Q1 FY2
Slide 14: Continued Strong DSO Improvement
Continued Strong DSO Improvement Ageing of Receivables ▪ June’23 DSO(4) improved by 118 days YoY to 114 (vs. 232 Days Contribution to Offtaker DSO Level DSO(4) days in June’22) as DISCOMs cleared past due accounts DSO ▪ Compared to Q1 FY23, improved DSO led to an incremental Central (2) <7 days 6 1
Slide 15: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary March 31, June 30, June 30, 2023 2023 2023 INR millions INR millions US$(4) millions (Audited) (Unaudited) (Unaudited) Cash, bank and cash equivalents(1) 76,018 68,465 834 Property plant and equipment(2) 538,355 565,498 6,891 Total Assets 746,494 778,548 9,488 Curr
Slide 16: Run Rate Debt Walk
Run Rate Debt Walk INR bn INR 65 bn – INR 72 bn INR 76 bn INR 50 bn – INR 60 bn INR 165 bn - INR 180 bn INR 30 bn – INR 40 bn INR 495 bn INR 590 bn - INR 610 bn INR 530 bn - INR 560 bn # Net of INR 18.1 bn of debt related to minority stake sale and INR 17.4 bn of CCD considered as equity 16 The cape
Slide 17: Sustainability and ESG
03 Sustainability and ESG 17
Slide 18: Leading the way for ESG in the RE sector and beyond
Leading the way for ESG in the RE sector and beyond Amongst the first in the 318,708 KL (approx.) of net 1,000,000 lives benefited as of industry to disclose scope 3 Biodiversity Policy Created for water saved (~48% less 31st March 2023 (Over 60% GHG emissions using ReNew compared to FY22) by increa
Slide 19: Impacting Communities With Sustainability Initiatives
Impacting Communities With Sustainability Initiatives Over 1 million lives benefited as of 31st March 2023 Flagship Programs Site Specific & Employee Driven Programs Lighting Lives Water security An initiative focusing on last mile A Community-Corporate (CC) based partnership to address the need for
Slide 20: Guidance
04 Guidance 20
Slide 21: Reiterating Guidance
Reiterating Guidance Adjusted EBITDA(1)(5) Net debt*(2)(5) to Adj. EBITDA levels INR 89 – 94 bn* INR 221 – 233/share INR 60 – 66 bn INR 62 bn INR 149 – 164/share INR 153/ share 1.2 X 0.4x-0.7x Consolidated Consolidated 5.7x Project Level 5.1-5.3x Run Rate FY23 Actual FY23 FY24e EBITDA Total Portfoli
Slide 22: Appendix
05 Appendix 22
Slide 23: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation For the three months ended June 30, 2022 2023 2023 (1) (Unaudited) (Unaudited) (Unaudited) (INR) (INR) (USD) Profit/Loss for the period (104) 2,983 36 Less: Finance income and fair value change in derivative 600 (1,521) (19) instruments Less: Share in profit of jointly con
Slide 24: Cash Flow to Equity Reconciliation
Cash Flow to Equity Reconciliation For the three months ended June 30, 2022 2023 2023 (Audited) (Unaudited) (Unaudited) (INR) (INR) (USD) Adjusted EBITDA 20,157 18,599 227 Add: Finance income and fair value change in derivative 600 1,521 19 instruments Less: Interest paid in cash (4,560) (7,947) (97
Slide 25: ReNew’s Outstanding Bonds
ReNew’s Outstanding Bonds Outstanding Avoided emissions (t CO2/year) attribute Bond Type Issue Date Maturity Coupon Green Bond (Mn $) to the bonds Holdco Issuance Jan 2020 Mar 2027 270 5.875% Yes 577,095 Restricted Group Oct 2020 Apr 2024 325 5.375% Yes 773,969 (RG III) Restricted Group Feb 2021 Feb
Slide 26: Debt Profile (~70% Maturity >3 years, 50% Amortising)
Debt Profile (~70% Maturity >3 years, 50% Amortising) By Debt Type By Source By Currency Euro Secured Loan 1% from Fis 34% INR US Dollars Hold Co. Debt Secured Bank Loan 67% 32% (hedged) 13% 23% (1) Senior Overseas Working Capital Loan Project debt Green Bonds 87% 38% INR Bonds 3% 2% By Project Stat
Slide 27: Finance Cost Walk
Finance Cost Walk Q1 FY23 Interest Expense vs Q1 FY24 Interest Expense All numbers in INR bn 18 3.43 16 14 1.49 12 0.19 10 8 16.20 6 11.08 4 2 0 Q1 FY23 Lower Foreign Exchange Lower Derivatives Expense Others Q1 FY24 Expenses 27 Note: Rupee (INR) appreciated from INR 82.19 per US$ to INR 82.06 per U
Slide 28: Weather Impact
Weather Impact All India Renewable Wind Energy PLFs 40.0% (FY 2021 – FY 2024) 35.0% Negative Q1 FY24 Weather impact of INR 1.3 bn versus normal 30.0% 25.6% ReNew wind PLFs in line with All-India trend 25.0% 34.8% 36.3% 29.9% 32.7% 20.0% 30.8% 16.7% 20.0% 18.3% 15.0% 14.7% 10.0% Q1 Q2 Q3 Q4 FY22 FY23
Slide 29: Operating Performance and Seasonality
Operating Performance and Seasonality As of and for the year ended 31 March, 2023 FY22 FY23 Q1FY23 Q1FY24 Wind Solar Wind Solar Wind Solar Wind Solar Commissioned capacity (GW) 3.8 3.7 4.0 3.9 3.8 3.7 4.2 4.1 Weighted average operational 3.7 2.8 3.9 3.7 3.8 3.7 4.0 4.0 capacity(1) (GW) Plant load fa
Slide 30: Bolstering Our ESG Targets
Bolstering Our ESG Targets Our ESG targets Update for Q1 - FY24 Status Emissions To be validated as carbon neutral (scope 1 Verified as ‘carbon neutral’ for our operations across ~150 sites and facilities for FY23 & 2) annually till 2025 Assurance Calculation of Scope 1, 2 and 3 GHG • Assurance for
Slide 31: Counterparty Overview and Asset Breakdown
Counterparty Overview and Asset Breakdown Total Portfolio Total 13.7 GW Hydro 0.1 GW Technology Solar 7.2 GW Wind 6.4 GW Commissioned Committed Commissioned Commissioned Committed Project Stage 4.0 GW 3.1 GW 0.3 GW 4.1 GW 2.3 GW PPA Counterparty Centre State Corporate Centre State Corporate 3.7 GW 2
Slide 32: Updated Share Holders and Diluted Shares
Updated Share Holders and Diluted Shares Economic Shareholding (1) Total Shares Outstanding For ReNew Energy Global PLC August’21 (Listing Current Shares (Mn) date) Particulars 26.76% 35.57% 21.6% Class A Shares 248 Class B Shares(3) - 3.5% 52.8% 3.64% Class C Shares 118 7.3% 6.65% Class D Shares(3)
Slide 33: Industry Overview: Demand, Supply and Infrastructure
Industry Overview: Demand, Supply and Infrastructure Industry trends indicate huge untapped potential Record Energy and Peak Demand in FY23(1) Rise in Electricity Blackouts Across India Energy GW Peak May 2023 Power Shortages in Various States BU 150 240 (% Power Demand)3 220 130 200 India (Total) 1
Slide 34: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) 23.1MW: APPC Rate + escalation linked to State APPC tariff; 2.1MW: INR GUVNL (23.1), 23.1 MW: 25 years; Jasda
Slide 35: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) Ostro-Lahori 92.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 Ostro-Amba 66.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 O
Slide 36: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) Ostro - Kutch (SECI 1) 250.0 Gujarat Oct-18 3.46 PTC 25 SECI II 230.1 Gujarat Oct-19 2.64 SECI 25 GUVNL 35.0
Slide 37: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) 5.98 for year 1 with 3% escalation till year 10, 10th year tariff Cumbum 21.0 Andhra Pradesh Mar-16 APSPDCL
Slide 38: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) SECI Raj 110.0 Rajasthan Feb-21 2.49 SECI 25 GUVNL 105.0 Gujarat Apr-21 2.68 GUVNL 25 SECI III 300.0 Rajasth
Slide 39: Project Level Details
Project Level Details (as of July 26, 2023) Project Type Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Firm Power Committed Projects (1,704 MW) Wind 322.0 Q4 FY24 PP-I (7) Karnataka Off Peak - 2.88; Peak - 6.85 SECI 25 Solar 81.0 Wind 601.0 Karnataka 2
Slide 40: Project Level Details
Project Level Details (as of July 26, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (467 MW) 327 MW Acquisition 25.2 Karnataka Jun-12 4.00 3rd Party 20 Other Corporate Projects(7) 441.3 Multiple Q2FY24-Q2FY25 2.
Slide 41: Thank You
Thank You For further inquiries please contact IR@renew.com 41