Adani Green Energy Limited · NSE:ADANIGREEN

Adani Green Energy — Debt Investor Presentation (September 2018)

37 slides from Adani Green Energy's debt investor presentation, September 2018

  1. Slide 1: Adani Green Energy Limited Investor Presentation

    ADANI GREEN ENERGY LIMITED Investor Presentation September 2018

  2. Slide 2: Confidentiality and Disclaimer

    Confidentiality and 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 growt

  3. Slide 3: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 4 Page 13 Page 22 3

  4. Slide 4: Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure

    Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure Adani 75.00% 56.68% 67.32%* 75.00% 86.58% Portfolio AEL APSEZ APL ATL AGEL Mkt Cap Energy Port & Logistics Thermal Power T&D Renewables ~USD 16 bn 25.00% 43.32% 32.68% 25.00% 13.42% Public  Pan India presence with leadership posi

  5. Slide 5: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 5

  6. Slide 6: Replicating Adani Infrastructure Success Story in Renewables

    AGEL – Replicating Adani Infrastructure Success Story in Renewables Accelerated Development With High Availability & CUF 0.33 Gw 0.81 Gw 1.96 Gw 2.16 Gw 3.15 Gw 21.14% 18.55% 18.25% 22.35% 21.68% 1.8 997 100 .00% 1.6 99.88% 99.87% 99.45% 99.53% 99.55% 1.4 98. 00% 210 1.2 60 2,148 96. 00% 1 1,898 1,9

  7. Slide 7: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 8 Page 13 Page 22 7

  8. Slide 8: Business Model & Structure

    AGEL – Business Model & Structure Business Model Structure 1 Fully integrated developer, owner & operator Adani Public Strongly focussed on cost of capital & 2 ROE 86.58% 13.42% Adani Green Energy 3 Focussed on continued value accretion Various SPV’s all 100% Owned Generate free cashflow – to self 4

  9. Slide 9: Operational Capacity by State

    AGEL – Operational Capacity Overview of Capacity (Mw) Current Status – Operational MW 0% 20% 40% 60% 80% 100% Punjab 100 Uttar Pradesh Rajasthan 50 50 1,898 300 250 20 Gujarat Madhya Pradesh 937 48 12 60 937 100 Maharashtra 20 100 Andhra Pradesh 50 2,198 997 Karnataka 810 Tamil Nadu 648 States – 1,9

  10. Slide 10: A ~3.2Gw Portfolio

    AGEL – A ~3.2Gw Portfolio Overview of Capacity (Mw) Diversified high quality off-takers Punjab NTPC/SECI 62.0%, 1,980 Mw 100 Uttar Pradesh 50 50 Rajasthan Tamil 250 20 20.3%, 648 Mw Nadu Gujarat Madhya Pradesh 937 48 12 Karnataka 8.5%, 270 Mw Others 9.3%, 297 Mw 100 Maharashtra 20 100 3195 MW Andhra

  11. Slide 11: Management

    AGEL – Management Sponsorship Gautam Adani Rajesh Adani Founder & Chairman Founder & Director Adani Group Adani Group AGEL – Access to Group Capabilities  Capital - Strong sponsor (promoter) support  Long standing relationship with the procurers  Leadership in Infrastructure Sector  Project Exec

  12. Slide 12: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 12

  13. Slide 13: India – Renewable Energy Sector

    India – Renewable Energy Sector India has significant headroom for power consumption growth Renewables’ overall share in power capacity remains low Nuclear, 2.0% Per capita power consumption 2015(KWh) Hydro, 13.3% US: ~12x India 12,001 China: ~4x India Renewable, World: ~3x India 19.2% 6,460 6,182 3

  14. Slide 14: India – Renewable Energy Sector

    India – Renewable Energy Sector India #3 on EY Global Renewable Energy Ranking India – Solar Advantage Solar Irradiation 2500 2000 1500 1000 1 500 2 3 0 China USA (California) MENA Germany India Mexico Australia Average Solar Irradiation (GHI – kWh/m2/Year)2  Grid Parity  Proximity to load centers

  15. Slide 15: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 16 Page 22 15

  16. Slide 16: India – Regulatory Framework for Power Sector

    India – Regulatory Framework for Power Sector Pre 1956 To 1991 To 2003  Electricity Supply Act 1948  Industrial policy resolution 1956  Electricity Act 2003  State Electricity Boards “SEB”  Power sector under state control  National Tariff Policy 2006 Ministry of (conventional) Power (MoP) / M

  17. Slide 17: India – Regulatory Framework for Power Sector

    India – Regulatory Framework for Power Sector 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); and  The framework for Operations & Maintenance costs  Built in credit support mechanism

  18. Slide 18: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 19 Page 22 18

  19. Slide 19: India – Renewables Sector Attributes

    India – Renewables Sector Attributes India’s Renewable Roadmap 2018 2024 Solar ~27GW 25% CAGR 106 GW ~100 58 Billion in Wind ~36 GW 8.5% CAGR GW investments  Declining project cost driven by falling equipment prices Development reasons  Enhanced design driving significantly high PLFs / generation

  20. Slide 20: India – Renewables Sector Attributes

    India – Renewables Sector Attributes Favorable confluence of Opportunity & Policy India – achieves grid parity CERC APPC 3.50 INR/KwH High Irradiation Potential of Budget & Wind 750 GW of 3.30 solar 3.15 capacity 2.68 2.44 2.48 Stable & Supported by Feb-17 Apr-17 May-17 Sep-17 Dec-17 100Gw Capacity

  21. Slide 21: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 22 21

  22. Slide 22: Majority Owned by Adani – A Leading Infrastructure Investor

    AGEL Majority Owned by Adani – A Leading Infrastructure Investor A) Strong Sponsor – Leadership in infrastructure sector  Largest private commercial port (APSEZ)  Largest thermal IPP (APL)  Largest Private sector transmission company (ATL)  Largest imported fuel (coal) trader (AEL) B) Strong Spo

  23. Slide 23: AGEL – An Integrated Business Model

    AGEL – An Integrated Business Model AGEL – develops owns operates and manages utility scale solar & wind power plants Post Origination Development Construction Operations Operations Phase O&M  Opportunity  Pipeline  EPC & Funding  Operation  Capital management  Analysis &  Site acquisition 

  24. Slide 24: AGEL – Typical project structure

    AGEL – An Integrated Business Model AGEL – Typical project structure AGEL 1. Design & Construction Dispatch Evacuation agreement & access 2. O&M Agreement 100% Equity (To meet all affiliate Interest SLDC/RLDC/NLDC relationship tests) and/or relevant Discom Project Debt Project SPV Project Lenders Sa

  25. Slide 25: Punjab 100 MW Case Study

    AGEL – An Integrated Business Model – Punjab 100 MW Case Study AGEL Punjab – Project Development Origination Design Sourcing Execution O&M Solar Plant design &  Real time Site selection irradiation sourcing monitoring  Value  SolarGIS  Sites with strong  Efficient plant engineering database irr

  26. Slide 26: Punjab 100 MW Case Study – Performance

    AGEL – An Integrated Business Model – Punjab 100 MW Case Study AGEL Punjab – Project Development GTI Solar % Achievement GTI Actual 101.6 GIS P50 (Actual / Solar irradiation (kWh/m2/year) 1,935 (kWh/m2/year) 1,965 Target) % Stable Capacity Utilisation Factor (“CUF”) Grid Availability Plant Availabil

  27. Slide 27: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 28 27

  28. Slide 28: Robust Operating Performance

    Robust Operating Performance Average Capacity (MW AC) CUF (%) (AC Basis) Solar Wind 1,744 Solar Wind 29.81% 21.14% 22.35% 18.55% 18.25% 858 21.68% 648 648 668 19.69% 16.36% 13.87% 13.53% 58 58 58 58 58 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Plant Availability

  29. Slide 29: Resilient Financial Performance

    Resilient Financial Performance Revenue (US$mm) EBIDTA (US$mm)1 & Margin (%)2 93% 87% 80% 104.1 134.6 60.1 65.6 74.9 70.5 FY17 FY18 Q1 FY19 FY17 FY18 Q1 FY19 Cash Profit (US$mm)3 Improving Receivable Days (Months)4 45.1 44.7 8 7 21.8 4 FY17 FY18 Q1 FY19 FY17 FY18 Q1 FY19 Notes: ¹ Calculation of EBID

  30. Slide 30: Who we are, Renewables, AGEL

    1 Who we are 2 Renewables 3 AGEL  Adani Group  India Renewable Sector  Poised to benefit  Project Execution  AGEL – Another Adani Success  Regulatory Framework  Case Study  AGEL – Introduction  Sector Attributes  Performance  A compelling investment Page 6 Page 13 Page 31 30

  31. Slide 31: Contemplated Debt Structure - Protected Pool Security Concept

    AGEL – Contemplated Debt Structure - Protected Pool Security Concept Structure Each Pool is Ring Fenced Cashflow waterfall mechanism Adani Green Energy Taxes, Statutory requirements 1 & Operating Expenses Various Pools Various Pools Various Pools (eg Pool 1) (eg Pool 2) (eg Pool 3) Senior Debt Payme

  32. Slide 32: Contemplated Debt Structure - Pool Credit Structure

    AGEL – Contemplated Debt Structure - Pool Credit Structure Pooling  Covenant testing and monitoring for each pool put together provides  All Issuers within the pool provide cross-guarantee to each others’ issuance diversificatio  All default, acceleration or reserve triggers only on the basis of

  33. Slide 33: Each Pool Protected by its Unique Covenant Structure

    AGEL – Contemplated Debt Structure - Each Pool Protected by its Unique Covenant Structure (illustration Pool 1) Key Covenant and illustration PLCR based maintenance covenant ensuring Alignment of Sponsor’s interest with project sustainable debt sizing and balance performance mitigates key risks  Is

  34. Slide 34: Comprehensive Globally Benchmarked Information & Compliance

    AGEL Pools – Contemplated Debt Structure - Comprehensive Globally Benchmarked Information & Compliance 1 2 3 Strong Audited Reviewed Compliance disclosure and Aggregated Aggregated certificate governance accounts accounts on each calculation date within 90 days of each FY within 120 days of each sem

  35. Slide 35: A Compelling Investment Opportunity

    AGEL – A Compelling Investment Opportunity Part of Adani’s India infrastructure investment – market leader in ports, T&D, Infrastructure Thermal power and now AGEL lineage Consistent track record of creating investor value Known & tested Stable regulations applied consistently (re affirmed by Suprem

  36. Slide 36: Thank You

    Thank You 36

  37. Slide 37: Payment Security Mechanism under PPA with SECI

    Payment Security Mechanism under PPA with SECI Covering 3 months payment. Sources of the said fund shall be money received from:  Encashment of BGs, Payment Security  Interest earned on this fund, Funds  Incentives for early payment  The grants from Government/NCEF,  Coal Cess earned by SECI, 

Adani Green Energy — Debt Investor Presentation (September 2018) on 6ix