Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Non-Deal Roadshow (September 2022)
32 slides from Renew Energy Global's roadshow presentation, September 2022
Slide 1: Investor Meetings – Investor Presentation Sept 2022
Investor Meetings Investor Presentation Sept 2022 For further inquiries please contact ir@renewpower.in 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 Global, the markets in which ReNew Global operates and ReNew Global’s future potential f
Slide 3: Investment Proposition
Investment Proposition 1 India’s electricity demand is expected to double by 2030 Expect substantial growth through 2030 Renewable Energy (RE) is the cheapest electricity source in India – ReNew is a market leader 2 3 Indian RE evolving to value–added solutions - ReNew has competitive advantages RNW
Slide 4: One Of The Largest Renewable Energy (RE) Developers Globally
One Of The Largest Renewable Energy (RE) Developers Globally India’s Largest Pure-Play RE Provider (by installed MW) A Leader In Renewable Energy Development Globally Net Capacity in MW (Operational)(1) Net Capacity in MW (Operational)(1) ReNew represents 26.3 7.6 over 1% of India’s electricity gene
Slide 5: ReNew’s Competitive Differentiation
ReNew’s Competitive Differentiation • RE Demand Mix shifting to RTC-type solutions (RTC to be mainstay) • Late Payment Rules resulting in past dues getting cleared Sectoral tailwinds • Corp. PPA’s taking off (25GW market) • Carbon offset market : TAM of ~$50bn by 2030 • Green Hydrogen – a very large
Slide 6: Growth Path To Committed 13GW and >300GW Opportunity Beyond
Growth Path To Committed 13GW and >300GW Opportunity Beyond ReNew’s Growth Path (GW) Untapped future opportunity in FY24-30 (1) Potential further Growth ~200 + Return Accelerators : • Storage Solutions (Fluence JV) • Corp. Customer Energy ~100 Management • Carbon offset products • Digital / AI solut
Slide 7: Business Model Generates High Cash Returns for Investors
Business Model Generates High Cash Returns for Investors CoC : Attractive Cash on Cash (Equity) Returns at Project level (Illustrative example) 9% 24% Cash returns (CoC) in 1-5yrs = Equity payback by 5th year 30% Cash return (CoC) = 3x Equity over lifetime 30% 350% 8% 305% 24% 8% 25% 24% 300% 7% 25%
Slide 8: Impacting Communities With Sustainability Initiatives
Impacting Communities With Sustainability Initiatives Community-Based Water Management CSR Report 2021-22 Gift Warmth https://renewpower.in/corporate-social-responsibility/ (Benchmark CSR case study recognized by Ministry of Corporate Affairs) Women for Climate – Entrepreneurship and Skilling Lighti
Slide 9: Indian RE Industry Overview
Indian RE Industry Overview 9
Slide 10: Indian RE Takes Off
Indian RE Takes Off Enormous potential of electrification driven long-term demand growth(1) Strong renewable energy growth projected (2) Per Capita Electricity Consumption (kWh) 12,573 (2) 447 8,111 Global 6,947 Average 4,546 3,152 99 1,149 16 Installed Capacity Current Installed Central Electricity
Slide 11: Electricity Demand Growth has Led to Blackouts & Rising Prices
Electricity Demand Growth has Led to Blackouts & Rising Prices Record Energy and Peak Demand in FY22(1) Rise in Electricity Blackouts across India Peak April 2022 Daily Power Cuts in Various States BU Energy GW 240 (In Hours)3 150 220 Energy demand +6-8% India (avg) 130 200 from 180 pre-Covid 110 16
Slide 12: ReNew’s Growth Opportunities
ReNew’s Growth Opportunities 12
Slide 13: ReNew Focused on Competitive Advantages with Higher Return Opportunities
ReNew Focused on Competitive Advantages with Higher Return Opportunities Current focus by Focus/Competitive Advantage by ReNew competitors Plain Vanilla Renewable Intelligent Energy Corporate PPAs Green Hydrogen Energy (RE) Solutions GWs Currently 6 - 8 GW 10-12 GW(1) 25 GW (2) 50 GW+ (2) For Auctio
Slide 14: Corporate PPAs - a Large Untapped Market
Corporate PPAs - a Large Untapped Market ReNew’s Corporate Tariff Lower Cost Than Other Options 25 GW addressable market - growing at double digits annually INR/kWh Solar ~3.25 – 3.45 ReNew’s Corporate PPAs to be ~25 - 30% of future growth Wind ~3.5 – 3.7 ReNew has competitive advantages in Corporat
Slide 15: ReNew Digital (ReD) Enhances Competitive Advantage
ReNew Digital (ReD) Enhances Competitive Advantage 25 projects worth INR 860 Mn ($12M) / Year annualized benefits ~ $100-120 M capitalized value advantage* Use cases 14 use cases Value Creation Initiatives in FY23 • Deployment of use cases under development Deployed 640 • Integrated asset reliabilit
Slide 16: Capturing Green Hydrogen Opportunities
Capturing Green Hydrogen Opportunities India’s National Hydrogen Mission India’s National Hydrogen Mission aims to have 5 million tonnes per annum (MTPA) of green hydrogen capacity by 2030, more than 80% of the current hydrogen demand in the country and require 100 GWs or more. In addition, the miss
Slide 17: Recent JVs Demonstrate Increased Competitive Edge and Technological Advancement
Recent JVs Demonstrate Increased Competitive Edge and Technological Advancement Partnership in Green Hydrogen JV in Energy Storage Solutions • Partnership agreement with L&T to jointly develop, own, • 50:50 JV to bring market-leading energy storage execute and operate green hydrogen projects in Indi
Slide 18: Financials
Financials 18
Slide 19: Guidance
Guidance Net Debt(2) & Leverage(3) At Operating Capacity Of 7.6 GWs Adjusted EBITDA(1) And 13.2 GWs INR 86 – 92 bn INR 204 – 217 / share INR 442 – 465 Bn INR 66 – 69 bn INR 58 – 61 bn INR 156 – 163 / share INR 313 - 330 Bn INR 55 bn INR 137 – 145 / share INR 130 / share 5.4x 5.1x 7.6 GWs 13.2 GWs FY
Slide 20: Superior Operating Capabilities
Superior Operating Capabilities Self EPC - Wind • ReNew is India’s largest wind developer • Largest wind EPC team (former Siemens-Gamesa employees) • 135 wind masts and 4 GWs of wind plants operating • Control largest RE land position in India In-house O&M • In-house O&M capabilities with a 441-memb
Slide 21: Capital Recycling: Selling assets at 9.5-10x EV / EBITDA and redeployed at ~7x
Capital Recycling: Selling assets at 9.5-10x EV / EBITDA and redeployed at ~7x 7.4x Share Buyback ($250 authorised)1 9.5 – 10x 7 – 8x Asset Sale Organic Growth Every $100 mn of equity recycled = ~3% of accretion to EBITDA/share ($450mn recycled in the last two years) 21 1. Out of $250 mn authorized,
Slide 22: Capital Recycling: Sale of Minority Stake Increases Returns
Capital Recycling: Sale of Minority Stake Increases Returns Illustrative Example of Minority Stake Sale Selling minority stakes at 9 – 10X EV/ EBITDA vs Build Cost at 7 – 8x EBITDA increases equity returns to 20 – 25% (up from 16 – 20% base case) Capital recycling at 9 – 10x EBITDA increases EBITDA/
Slide 23: Strong liquidity position
Strong liquidity position Cash balance expected to be over $900mn once 13.2 GWs1 is completed Strong ending cash balance after 13.2 GWs1 built, debt maturities INR Bn Cash flow from 7.6 GWs to 13.2 GWs No new shares issued under current plan INR 55 bn of near-term debt maturities out of which INR 43
Slide 24: Limited interest rate sensitivity; Refi opportunity at lower rates
Limited interest rate sensitivity; Refi opportunity at lower rates India lending environment remains supportive 1Q'23 Re-Financing details Debt refinanced (USD mn) 592 Raised new debt at 8.4% in Q1 FY 23 Vs. current avg. debt cost* of ~8.9% Old WA Interest Rate (%) 10.4% New WA Interest Rate (%) 8.4
Slide 25: DSOs Improving
DSOs Improving AP DISCOM (~42% of total past due receivables1), has agreed to pay past due bills over the next 12 months, with two payments already received in Aug’22 and Sep’22 DSO improves YoY to 232 days (vs. 262 days in 1Q FY22). First time in last three years that 1Q DSO improved YoY Making pro
Slide 26: RNW Trading Multiples
RNW Trading Multiples Indian Players European Players North American Players India Utility Players CY22 EV/EBITDA Multiple 9.7x 15.1x 17.2x 14.7x 22.5x 19.1x 18.5x 15.5x 12.8x 15.4x 14.6x 14.6x 16.2x 15.0x 10.8x 11.3x 10.2x 8.7x CY23 EV/EBITDA Multiple 8.0x 13.8x 16.4x 12.6x 21.0x 16.7x 14.5x 14.9x
Slide 27: Appendix
05 Appendix 27
Slide 28: Recent Policy Developments & Benefits
Recent Policy Developments & Benefits Electricity • Mandatory payment security from Discoms, barring which no power supply Boosts RE demand + Amendment Bill payment security for (Aug’22) • Discoms not meeting RE purchases (RPO) targets to be penalised future PPAs Renewables Purchase • MNRE raises RP
Slide 29: Track Record Of Efficient Capital Raise From Diverse Sources Of Funding
Track Record Of Efficient Capital Raise From Diverse Sources Of Funding Outstanding Funding (30th June 2022)(1) Raised US$3.5bn+ In Bond Offerings Through 8 USD Bond Offerings At Competitive Rates Reduction in weighted Working average cost of USD Capital Loan 6.67% bonds INR Bonds 1.0% 6.45% 1.72% 4
Slide 30: Leading The Energy Transition In India: ESG Targets
ReNew Is Leading The Energy Transition In India And Is Committed To Global Sustainable Development Goals Our ESG targets Progress as of FY 22 Emissions To be validated as carbon neutral (scope 1 & 2) Verified as ‘carbon neutral’ for our operations across more than 100 sites and facilities for FY21 D
Slide 31: Expected quarterly additions of installed capacity
Expected quarterly additions of installed capacity 0.8 GW 0.2 GW 1.8 GW 1.4 GW 0.2 GW 0.6 GW 0.2 GW 13.2 GW 0.2 GW 13.2 GWs 12.347715 7.6 GW 8.923215 GWs 8.498785 GW 7.6 GW 7.62393 GW 6.3 GW Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 PPAs Awaited Total 31 Note: PPA Awaited statu
Slide 32: Thank You
Thank You For further inquiries please contact IR@renewpower.in 32
ReNew Energy Global — Non-Deal Roadshow (September 2022) on 6ix