Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Q4 FY2020 Earnings Presentation
50 slides from Adani Energy Solutions's earnings presentation, May 2020
Slide 1: Q4 and FY20 Results Presentation
Adani Transmission Limited Q4 and FY20 Results Presentation May 2020
Slide 2: Contents
CONTENTS Adani Group ATL – Company Profile Operational Highlights 04-07 09-12 14-16 ADANI: World class infrastructure ATL: Manifesting Adani’s Infrastructure & utility portfolio 04 Excellence in T&D business 09 ATL: Operational Highlights Snapshot 14 ADANI: Repeatable, robust & ATL at a Glance 10-11
Slide 3: Adani Group
Transmission adani
Slide 4: Adani: World class infrastructure & utility portfolio
Adani Transmission Limited Results Presentation | May 2020 Adani: World class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.1% 100% 75% 75% Philosophical shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D R
Slide 5: Adani: Repeatable, robust & proven model to deliver RoE
Adani Transmission Limited Results Presentation | May 2020 Adani: Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Rede
Slide 6: Adani: Repeatable, robust business model applied to drive value
Adani Transmission Limited Results Presentation | May 2020 Adani: Repeatable, robust business model applied to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Solar La
Slide 7: ATL: A platform well-positioned to leverage growth opportunities in T&D business
Adani Transmission Limited Results Presentation | May 2020 ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Transmission Network of ATL - Present in 9 states with 21 Transmission (FY20): Development 14,739 ckms1; t
Slide 8: Company Profile
Company Profile
Slide 9: ATL: Manifesting Adani's Infrastructure Excellence in T&D business
Adani Transmission Limited Results Presentation | May 2020 ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution Strength and Pan Pan-India network & only private AEML - One of the best-run 3 million+ India Presence sector co. to operate 500 KV 93-year old integrated utility R
Slide 10: ATL at a Glance (1/3)
Adani Transmission Limited Results Presentation | May 2020 ATL at a Glance (1/3) 100%1 74.9% 25.1% Transmission Distribution Qatar Investment SPV’s SPV Authority (QIA) 15 Operating SPVs, 9 under construction SPVs 1,2 Adani Electricity Mumbai Limited (AEML) Average remaining Concession Life Ckt Kms2
Slide 11: Transmission Utility at a Glance (2/3)
Adani Transmission Limited Results Presentation | May 2020 Transmission Utility at a Glance (2/3) ATL ROA TBCB (Section 63) Other SPVs (Section 62) Regulated Asset Base Portfolio TBCB Asset Base Portfolio No. of No. of 4 Assets 20 Assets Asset Base Asset Base(1) 107.3 137.1 (Rs. Bn) (Rs. Bn) Op. EBI
Slide 12: AEML (Distribution Utility) at a Glance (3/3)
Adani Transmission Limited Results Presentation | May 2020 AEML (Distribution Utility) at a Glance (3/3) Operating in Gateway City of Mumbai ATL Top 10 Centers of commerce in world 6% of India’s real GDP Other SPVs AEML QIA 4x Per capita income of India Stable and Evolved Regulatory Regime Regulated
Slide 13: Operational Highlights
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Operational Highlights 14
Slide 14: ATL: Operational Highlights - Snapshot
Adani Transmission Limited Results Presentation | May 2020 ATL: Operational Highlights - Snapshot ATL recorded improvement on all key performance indicators in FY20 Transmission Distribution (AEML) Network Distribution Availability Consumers length Losses FY20 99.76% 14,739 ckt km 3.05 million 7.37%
Slide 15: ATL: Operational Highlights - Transmission Utility
Adani Transmission Limited Results Presentation | May 2020 ATL: Operational Highlights - Transmission Utility Consistent availability above normative levels ensures periodic incentive maximization Average Availability Across Operational Assets % (1) Focus on Maximizing Incentives % Normative Incenti
Slide 16: ATL: Operational Highlights - Distribution Utility (AEML)
Adani Transmission Limited Results Presentation | May 2020 ATL: Operational Highlights - Distribution Utility (AEML) SAIDI (# mins) and SAIFI (nos.) Supply Reliability (ASAI) (%) Distribution Loss (%) SAIFI SAIDI Declining Outage Time and Outage Occurrences Maintain 99.9% 7.85% Target of <6% reliabi
Slide 17: Financial Highlights
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook Financial Highlights 14
Slide 18: ATL: Financial Highlights - Snapshot
Adani Transmission Limited Results Presentation | May 2020 ATL: Financial Highlights - Snapshot ATL recorded improvement on all key financial indicators in FY20 Consolidated Transmission Distribution FY20 FY19 FY20 FY19 FY20 FY19 Operating Revenue 10,237 6,530 2,704 2,260 7,532 4,270 Operating EBITD
Slide 19: ATL: Revenue and EBITDA trend
Adani Transmission Limited Results Presentation | May 2020 ATL: Revenue and EBITDA trend Operating Revenue performance Operating EBITDA performance Transmission Distribution 10,237 Transmission Distribution Margin 92% 24% 8,017 4,287 92% 26% 91% 19% 6,530 7,532 3,395 1,805 2,857 5,996 1,530 4,270 80
Slide 20: ATL: Operational EBITDA Evolution
Adani Transmission Limited Results Presentation | May 2020 ATL: Operational EBITDA Evolution Operational EBITDA performance supported by resilient and integrated business model Transmission Distribution 3000 4500 (14) 4000 (371) 2500 445 3500 2000 3000 (1406) 2500 3,262 1500 2000 (486) 2,482 1000 2,
Slide 21: ATL: EBITDA to Free Cash Flow
Adani Transmission Limited Results Presentation | May 2020 ATL: EBITDA to Free Cash Flow Solid Free Cash Flow generation available for future growth 1114 (2453) (192) (498) 2988 4519 2490 EBITDA Working Cpaital Interest & finance Tax expense Cash profit Repayment Cash generation for Chnages cost Gro
Slide 22: ATL: Debt Evolution and Key Ratios
Adani Transmission Limited Results Presentation | May 2020 ATL: Debt Evolution and Key Ratios Cost of Gross Debt: reduced by 50 bps vs. FY19 Net Debt(1) Net Debt Evolution Key Ratios 1,000 722 916 4,624 4.7 4.3 3.3 17,269 2.1 2.3 15,221 2.1 1.6 1.3 1.4 1.3 1.3 1.2 FY18 FY19 FY20 Fixed Asset Coverage
Slide 23: Capital Management
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Capital Management 14
Slide 24: ATL's Capital Management Program brings diversity and elongated maturity
Adani Transmission Limited Results Presentation | May 2020 ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile As of As of Refinancing risk minimised1 31st Mar 16 31st Mar 20 ~Rs. 3.2 bn of debt (<1 year) vs. FFO of Rs. 18.8 bn (FY20) Consolidated 12% Rs.
Slide 25: AEML: Significant De-risking through Capital Management
Adani Transmission Limited Results Presentation | May 2020 AEML (Integrated Utility): Significant De-risking through Capital Management Capital De-risking of Asset Underlying Value Creation AEML US$ 1 bn bond issue in Jan-20 QIA’s acquisition of 25.1% stake in AEML Key Attributes Key Attributes Debt
Slide 26: ATL: Value Creation through Capital Management Program
Adani Transmission Limited Results Presentation | May 2020 ATL: Value Creation through Capital Management Program Fully Established Capital Churn Cycle at ATL Value Creation through New Asset Refinancing Stabilized FCFE from Asset used Replicability of Model Construction – Asset- for Future Growth (
Slide 27: Outlook
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Outlook 14
Slide 28: ATL: Update on Covid-19, its impact on operations and key initiatives
Adani Transmission Limited Results Presentation | May 2020 ATL: Update on Covid-19, its impact on operations and key initiatives • Power Transmission and Electricity Distribution is classified as an ‘essential service’ requiring all our operations to be fully-functional with minimum staff required.
Slide 29: ATL: Outlook
Adani Transmission Limited Results Presentation | May 2020 ATL: Outlook Economic Outlook Operations Outlook • No major deviation in relation to guidance given by ATL and AEML with regards to financial and operational performance • Situation expected to improve progressively from May onwards as lockd
Slide 30: ATL: Key Focus Areas FY21 and Beyond
Adani Transmission Limited Results Presentation | May 2020 ATL: Key Focus Areas FY21 and Beyond Liquidity Management Growth • Focus on maintaining adequate liquidity cover to swiftly mitigate ATL well placed to capture future growth through multiple current uncertainties and any unpredictable scen
Slide 31: ESG
Adani TransmissionLimited Adani Transmission Limited Results Debt Presentation May 2020 Presentation || February 2020 Transmission ESGESG 08
Slide 32: ATL: ESG Performance
Adani Transmission Limited Results Presentation | May 2020 ATL: ESG Performance 8 % ↓* 7.5 % ↓* 7.45 % * 1.835 MW Auxiliary Power Scope 1 Emission Solar Power Generation Solar Panel Consumption 3187008 TCo2e 2.73 MUs 346.53MUs 6.23 % ↓* 31.62 % ↓* 1.23 Million 195.4 Ha - Afforestation Trees planted
Slide 33: ATL: Inculcating Safety Culture
Adani Transmission Limited Results Presentation | May 2020 ATL: Inculcating Safety Culture Safety – Always First Safety Initiatives in FY20 Safety Performance in FY20 • Training: Over 16,500 man-hours of safety awareness and training • Gensuite: Dedicated app for safety incident • 1 fatalities repor
Slide 34: AEML: Initiatives towards reduction of carbon footprint
Adani Transmission Limited Results Presentation | May 2020 AEML: Initiatives towards reduction of carbon footprint Renewable Power Climate Awareness Targeted 30% of consumption from Renewable sources Environmentally compliant generation at ADTPS Committed to increasing share of renewable power procu
Slide 35: Annexure
Adani TransmissionLimited Adani Transmission Limited Results Debt Presentation May 2020 Presentation || February 2020 Transmission Annexure (Detailed Financials, Asset Portfolio, Capital market Activity, Credit Rating, ESG) 22
Slide 36: ATL: Transmission Utility - Revenue and Operating EBITDA Bridge
Adani Transmission Limited Results Presentation | May 2020 ATL: Transmission Utility - Revenue and Operating EBITDA Bridge FY20 – Revenue bridge YoY FY20 – Operating EBITDA bridge YoY 2,700 462 2,500 445 2,400 2,300 (35) (5) (8) (7) 24 14 2,100 2,100 (0.2) (14) 2,657 2,482 1,900 2,212 1,800 2,051 1,
Slide 37: ATL: Distribution Utility (AEML) - Revenue and EBITDA Bridge
Adani Transmission Limited Results Presentation | May 2020 ATL: Distribution Utility (AEML) - Revenue and EBITDA Bridge FY20 – Revenue bridge YoY FY20 – EBITDA bridge YoY 8,000 79 84 (7) (7) 33 46 3,200 2,800 7,500 443 2,400 (27) (36) 228 (390) 7,000 2,000 7,871 7,643 1,600 6,500 1,200 1,882 1,664 8
Slide 38: ATL: P&L FY20 vs. FY19
Adani Transmission Limited Results Presentation | May 2020 ATL: P&L FY20 vs. FY19 (Rs in Crore) 12M FY20 12M FY20 12M FY20 12M FY19 12M FY19 12M FY19# Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distri
Slide 39: ATL: P&L Q4FY20 vs. Q4FY19
Adani Transmission Limited Results Presentation | May 2020 ATL: P&L Q4FY20 vs. Q4FY19 (Rs in Crore) Q4 FY20 Q4 FY20 Q4 FY20 Q4 FY19 Q4 FY19 Q4 FY19 Sr. No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribu
Slide 40: ATL: P&L Q4FY20 vs. Q3FY20
Adani Transmission Limited Results Presentation | May 2020 ATL: P&L Q4FY20 vs. Q3FY20 (Rs in Crore) Q4 FY20 Q4 FY20 Q4 FY20 Q3 FY20 Q3 FY20 Q3 FY20 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribut
Slide 41: ATL's Evolution and Operational Portfolio
Adani Transmission Limited Results Presentation | May 2020 ATL’s Evolution and Operational Portfolio ATL’s Transmission Network (ckt km) has grown 2.7x Adani Transmission Limited in 3 years; and Distribution business acquired in FY19 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% ATL’s “Grid-
Slide 42: ATL: Locked-in Growth from Under-construction TBCB Projects
Adani Transmission Limited Results Presentation | May 2020 ATL: Locked-in Growth from Under-construction TBCB Projects Adani Transmission Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ghatam- Obra-C WRSS – Bikaner - Lakadia Kharghar NKTL Jam Kham- FBTL Banas- HVDC# pur Badaun XXI (A
Slide 43: ATL: Capital Management Program Demonstrating Global Excellence
Adani Transmission Limited Results Presentation | May 2020 ATL: Capital Management Program Demonstrating Global Excellence Highlights Obligor 1 Obligor 2 USPP AEML ATIL MEGPTCL STL, ATRL, CWRTL, RRWTL, AEML Asset PPP-8,9,10 FY20 Operational EBITDA (Rs. Crs) 1,683 596 1,805 Tenor 10 year 16.5 year 30
Slide 44: ATL is rated Investment Grade from FY16 and beyond
Adani Transmission Limited Results Presentation | May 2020 ATL is rated Investment Grade from FY16 and beyond International- Obligor Group SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable CARE, India Rating AA+ Stable ATL
Slide 45: ATL: Integrated ESG Framework for enhanced value creation
Adani Transmission Limited Results Presentation | May 2020 ATL: Integrated ESG Framework for enhanced value creation Technological advancement for minimal downtime during maintenance better availability increased EBITDA TARGET BY SEP 2021 Renewable Power Procurement at below APPC tariff reduction fo
Slide 46: ATL: Key ESG Metrics and Initiatives
Adani Transmission Limited Results Presentation | May 2020 ATL: Key ESG Metrics and Initiatives CO2 emissions Water Waste Land use (AEML - Dahanu) Environment Scope 1 (TCO2e): Fresh Water (KL): 18,16,997 ~40 KL Waste generated of used ~148 hectares of green belt 31,87,008 oil Water recycled (KL): 2,
Slide 47: ATL: Environment awareness and Initiatives
Adani Transmission Limited Results Presentation | May 2020 ATL: Environment awareness and Initiatives ATL recognizes that below environment related factors matter to our business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Mana
Slide 48: ATL: Governance - Journey so far and future glide path
Adani Transmission Limited Results Presentation | May 2020 ATL: Governance – Journey so far and future glide path We have charted a glide path to internalise global best practices of governance by September 2021 Journey so Far Target by SEP 2021 Structure for 8 SPVs including AEML, with no cross sec
Slide 49: Thank You
Adani Transmission Limited Results Presentation | May 2020 Thank You 49
Slide 50: Legal Disclaimer
Adani Transmission Limited Results Presentation | May 2020 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 prese