Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Debt Investor Presentation (May 2025)
57 slides from Adani Energy Solutions's debt investor presentation, May 2025
Slide 1: Adani Energy Solutions Limited Credit Presentation May 2025
Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Credit Presentation May 2025
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio 09-12 About AESL and Credit Position 14-16 Transmission 18-21 Distribution 23-24 Smart Metering 26-28 Business Philosophy ESG, Investment Case, Board & 30-35 Management 39-53 Annexure
Slide 3: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal Direct to Incubator Energy & Utility Transport & Logistics & Mining consumer (100%) (100%) (73.97%) (100%) (50.00%) (100%) (100%) ANIL AdaniConneX3
Slide 5: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 3x 6 EBITDA 72% 1,2,3 EBITDA 92% 1,3,4 AEL APSEZ Growth 4x 6 Growth 3x 6 AGEL ATGL Adani’s Core Infra. Plat
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment DEVELOPMENT1 OPERATIONS CONSUMERS 2 New C.E.O. Adani Infra (India) Limited (AIIL) | ITD Cementation Ltd. | PSP Projects Ltd. Operations (AIMSL) Consumer I Employees I Other Stakeholders Origination Site Development Construction Op
Slide 7: AESL: A platform well-positioned to leverage growth opportunities in energy domain
AESL: A platform well-positioned to leverage growth opportunities in energy domain RAB expansion through Execution Prowess Strategic Presence Asset Hardening in Discoms Transmission Network of Transmission - Presence in 14 states 8% CAGR growth in RAB in Mumbai Development 26,696 ckm(1) Distribution
Slide 8: About AESL
adani Energy Solutions Adani Energy Solutions Ltd. (formerly known as Adani Transmission Ltd.) adani Energy Solutions =i, Smart Metering About AESL
Slide 9: AESL: Business Snapshot
AESL: Business Snapshot Adani Family Public 69.9%(1) 30.1% Transmission Distribution Smart Metering Cooling Solutions 100% 25.1%(2) 74.9% 100% 100% 100% 100% AEML MUL 22.8 million smart meters with a Section 63 Section 62 Mundra Parallel License (under approval): Mumbai contract value of Rs. 272 bil
Slide 10: Transformational Journey with Robust Growth and Credit Discipline
Transformational Journey with Robust Growth and Credit Discipline EBITDA (Rs. Crs) 7,746 6,101 6,322 5,493 5,066 4,519 2,937 3,113 1,997 2,005 FY16 FY17 FY18# FY19 FY20 FY21 FY22 FY23 FY24 FY25^ Transmission Distribution AESL is Investment grade rated since FY16 Net Debt to EBITDA(2) (x) Gross Fixed
Slide 11: AESL and AEML Credit Ratings
AESL and AEML Credit Ratings International – ATSOL Obligor Group (Transmission business) (Reg S/ 144A) Domestic – AESL and AEML (Long term ratings) Rating Agency Facility Rating/Outlook Company Rating Agency Rating/Outlook AESL India Ratings/CRISIL/ICRA AA+, AA+, A1+/ Stable Fitch Dollar Bond BBB-/N
Slide 12: AESL: Current issuances' credit performance history
AESL: Current issuances' credit performance history • Actual (“x” times; unless specified otherwise) —Stipulated / Threshold DSCR FFO Cash Cover 4.74 4.53 4.04 4.07 4.69 4.14 4.18 3.26 3.46 3.26 3.20 3.19 3.01 3.17 2.95 ATSOL 2.37 2.44 2.77 2.47 2.27 2.38 2.62 2.38 2.49 2.11 2.23 OG Group 1.90 1.56
Slide 13: Transmission
Energy Solutions
Slide 14: Transmission: Stable Regulatory Framework
Transmission: Stable Regulatory Framework The Electricity Act 2003 RAB Based Transmission and Distribution Assets Fixed Tariff Transmission Assets Section 62 - RAB Assets - Multi Year (5 yr) Tariff Section 63 – Fixed Tariff Method – License Period Basis Services Costs (Pass- O&M Expenses Power Procu
Slide 15: Transmission: Payment Pooling Mechanism Reduces Counterparty Risk
Transmission: Payment Pooling Mechanism Reduces Counterparty Risk Regulatory landscape CERC and SERC established & predictable in maintaining and defining tariffs • CERC, MERC and other ERCs have a Long-Standing History • CERC and state regulatory body (e.g., MERC, RERC) MYT Determination of Maintai
Slide 16: Transmission Business
Transmission Business Transmission Section 63 Section 62 Key Characteristics (Fixed tariff1) (RAB Assets) Concession Life : 35 years 38 Transmission Assets 7 Transmission Assets Counterparty : Network pool (Centre and State) 13 Under-construction 25 Operating Assets 5 Operating Assets 2 Under-constr
Slide 17: Distribution
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission Distribution 14
Slide 18: Distribution: Stable and evolved regulatory framework with predictable returns
Distribution: Operating in a stable and evolved regulatory framework with predictable & robust returns Tariff is based on assured return on capital model + pass-through of costs + efficiency linked incentives Incorporated in 1999, MERC is the Normative costs Assured return on Efficiency linked Regul
Slide 19: Distribution Business
Distribution Business Distribution Section 62 (RAB Assets) Key Characteristics AEML MUL Parallel Licensing (applied and proposed) License period: 25-year and perpetual business Mumbai Mundra SEZ 400 sq km license area 85 sq km license area • Mundra Subdistrict • Navi Mumbai & Thane Counterparty: Poo
Slide 20: AEML Distribution: India's No. 1 power utility
AEML Distribution: India's No. 1 power utility, as per MoP, McKinsey, PFC (Scored 99.6/100) Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition Approved RAB Addition and EBITDA (Rs Crs) Capitalised RAB (Rs Crs) About Mumbai Capex (RAB addition) E
Slide 21: MPSEZ Utilities Limited (MUL): Overview
MPSEZ Utilities Limited (MUL): Overview Mundra SEZ is strategically located with well developed supporting RAB(1) (Rs Cr) infrastructure serving as an attractive industrial hub 59%, – Electricity Distribution for Mundra SEZ area RAB FY25 29 41%, Rs 49 Cr – Catering primarily to commercial and indust
Slide 22: Smart Metering
adani Energy Solutions Smart Metering
Slide 23: Smart Metering Business
Smart Metering Business Smart Metering Key Characteristics DBFOOT (Totex Model) Capex + Opex Payment Security through Direct Contract period: 10 Years debit facility Under Implementation Counterparty: Pool of over 91 million Enhanced energy efficiency and RE consumers integration 9 Contracts (22.8 M
Slide 24: Smart Metering Contractual Framework
Smart Metering Contractual Framework Flow of Revenue for Smart Meter SPV Contract For Advanced Metering Infrastructure Service Provider (AMISP) Payment of Electricity Bills Consumers Payment Gateway Agent Bank Month Months 0 120 Supply of Direct Debit Facility Implementation Period Operational Perio
Slide 25: Business Philosophy
adan Energy Solutions Business Philosophy
Slide 26: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Complex projects experience: Completed HVDC project − Route alignment on topographic maps to optimize route & (~1000 kms) in a record time of 24
Slide 27: Project Management & Assurance Group (PMAG): End to End Project Integration
Project Management & Assurance Group (PMAG): End to End Project Integration Bidding, Site Scouting Project Development & Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of 2,000+ man-years of com
Slide 28: Capital Management Philosophy to achieve growth at scale with capital discipline
Capital Management Philosophy to achieve growth at scale with capital discipline AESL is the only private sector transmission and distribution company in India with International IG Rating – Long life contracted assets with sovereign counterparties in a stable regulatory regime (Transmission: 35-yea
Slide 29: ESG Framework, Investment Case and Board and Management
ESG Framework, Investment Case and Board and Management 29
Slide 30: Assurance backed ESG framework
Assurance backed ESG framework Guiding principles IFC E&S United Nations UN Sustainable India Business & Biodiversity SLB Performance Global Compact Development Goals Initiative (IBBI) Principles Standards Guiding Policies principle Disclosure Standards TCFD TNFD GRI Standards CDP disclosure BRSR GH
Slide 31: Transforming through Green Energy Adoption
Transforming through Green Energy Adoption − AESL's pledge to ‘Net Zero by 2050’ to limiting the global temperature rise to 1.5°C with no or limited temperature overshoot. − With interim ABSOLUTE GHG emissions targets: • Reduce 72.7% Scope (1 + 2) by FY 2032 • Reduce 27.5% Scope 3 by FY 2031 − Green
Slide 32: ESG Commitments & Targets
ESG Commitments & Targets ESG Commitments − To maintain our position in the top 10 percentile ESG ratings within global electric utilities (S&P CSA) − To purchase RE power at AEML 60% by FY27 (committed under SLB framework) & 70% RE sources by FY30 − To reduce Emission intensity [tCO2e/ EBITA] @ AEM
Slide 33: ESG Ratings, Awards and Recognition
ESG Ratings, Awards and Recognition ESG Commitments ESG Ratings AESL’s Rating Ranking of 87%, with consistent ranking above Electric & Gas Utilities industry average [911 companies] ESG Risk Rating of ‘Medium Risk’ with a score of 27.9 in January 2025 (improved from High Risk - 32.8 in April 2023),
Slide 34: AESL: Compelling Investment Case
AESL: Compelling Investment Case − Evolved and stable regulatory regime has enabled growth of AESL’s business into multiple segments (Transmission, Favorable Industry Distribution, Smart metering, District cooling) within energy domain Landscape − Focus on Grid reliability, consumerism and shift to
Slide 35: AESL: Board and Management Team
AESL: Board and Management Team Board of Directors Board Committees Independent Directors 100% Chaired Chaired IDs by IDs by NID Meera Shankar Statutory Committees 40% Lisa MacCallum - Audit 🗹 Comprised of only Independent Directors 45+ Yrs of Experience 25+ Yrs of Experience - NRC 🗹 Skill &…
Slide 36: Annexures
38-40 Sectoral Growth Opportunity Annexures 42-44 Cooling Solutions 45-48 ESG Initiatives 49 AEML – Case Study 50 Smart Metering – Key Benefits 51-55 Project Level Details – Asset Portfolio 36
Slide 37: Growth Opportunity
Energy Solutions ity adan c 3 iJ ci ° a a Oo £ P~d s ° = oO
Slide 38: Transmission: Private Participants Opportunity of ~US$ 28 bn over 10 years
Transmission: Private Participants Opportunity of ~US$ 28 bn over 10 years Attractive Industry Opportunity backed by strong policy support RE penetration & General Network Access to boost system strengthening – Mandatory competitive bidding introduced since 2006 (TBCB) Renewable Penetration General
Slide 39: Distribution and Parallel License Opportunity
Distribution and Parallel License Opportunity (1) – Power distribution is one of the largest consumer facing sectors in the country. 96.7% of ~270 mn households in India are connected to the grid and primarily owned and operated by state governments – AESL’s Distribution platform intends to position
Slide 40: Smart Metering Opportunity
Smart Metering Opportunity – Awarded (LOA) and Negotiation (L1) stage: 154 Mn Smart Meters – Untapped market: 95 Mn Smart meters Himachal Pradesh India’s Target (mn meters) AESL’s Market Share (mn and %) Punjab Uttarakhand Haryana Delhi Rajasthan Assam Bihar Meghalaya 23 / Tripura 16% Madhya Pradesh
Slide 41: Cooling Solutions
Cooling Solutions 41 Picture source: GIFT City DC Plant
Slide 42: Cooling Solutions: DSC Snapshot
Cooling Solutions: DSC Snapshot The District Cooling System (DCS) produces chilled water in a central plant and distributes cooling capacity in the form of chilled water from the central plant to multiple buildings through a network of underground pipes for use in space and process cooling. 1 A cent
Slide 43: Why District Cooling? – Business Rationale
Why District Cooling? – Business Rationale − Large scale infrastructure development requires sustainable, energy efficient and low carbon cooling solutions Changing Demographic and − Rising per capita income, urbanization, coupled with growing AC ownership to drive the cooling growth Economic Trends
Slide 44: Cooling Solutions Opportunity: Four key segments to drive DCS demand
Cooling Solutions Opportunity: Four key segments to drive DCS demand Cumulative Cooling Demand from key segments by FY30(1) (in Mn TR) Commercial Real To experience growth from 0.6 bn sqft (2019) 16% 84% 44.04 Estate to 1 bn sqft (2030) Global industrial cooling market, expected to 2.66 Industrial C
Slide 45: AESL: Key Environmental Indicators and Milestones
AESL: Key Environmental Indicators and Milestones Key Performance Indicators Current Status Baseline Short to Medium-term Targets Energy Mix & Emission Intensity - RE share in power procurement AEML has achieved 36% renewable in power mix as of FY25 3% FY19 60% by FY27 70% by FY30 AEML has reduced i
Slide 46: AESL: Key Social Indicators and Milestones
AESL: Key Social Indicators and Milestones Material Actual Target Material Themes Key Performance Indicators Baseline Categories (FY24-25) (FY24-25) Zero Number of fatalities 1 Zero (FY 20-21) Work related injury Rate of recordable work-related injuries per 0.33 0.01 Zero million man-hours worked (F
Slide 47: AESL: Key Governance Indicators and Milestones
AESL: Key Governance Indicators and Milestones Material Categories Material Themes Key Performance Indicators Baseline Actions Taken and Goals 16.6% - women Board Gender Balance the board composition in terms of men • % of women directors in board improved to Board Gender Diversity directors in boar
Slide 48: AESL: Enhanced Safety Culture
AESL: Enhanced Safety Culture Safety Initiatives During Q4FY25 Safety Performance in Q4FY25 • Safety training: 43,209 man-hours of safety training and awareness during Q4FY25 Transmission Distribution (AEML) • Positive Safety Culture: Safety Parameters Q4FY25 Q4FY24 Q4FY25 Q4FY24 o The Mumbai HVDC p
Slide 49: AEML Case Study: Successful Acquisition and Turnaround
AEML Case Study: Successful Acquisition and Turnaround ✓ Uptick in regulated capex (INR cr) RAB (INR cr) – Low capex pre-acquisition on account of liquidity constraints Post-acquisition Projection – Investment in capex resulting in asset hardening → supply Pre-acquisition 1,630 9,549 1,409 1,243 1,4
Slide 50: Smart Metering – Key Benefits
Smart Metering – Key Benefits Technology transformation Real time information Two-way communication Key technology towards the Measures electricity consumption & Between the meter and the power utility through transformation of power sector in India communicates the consumption reading to the cellul
Slide 51: Asset Portfolio: Presence Across the Country
Asset Portfolio: Presence Across the Country 16 26,696 90,236 States ckt km MVA MUL (85 sq km) (distinct states Transmission Transmission including smart metering business) Line Capacity No Operational Ckt Kms 25 WKTL 1,756 1 MEGPTCL 1,217 26 KTL 9 Khavda RE 2 ATIL (3 lines) 3,834 27 KVTL 74 Cluster
Slide 52: AESL's Operational Asset Portfolio as of March 2025 (1/2)
AESL’s Operational Asset Portfolio as of March 2025 (1/2) Adani Energy Solutions Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP Bikaner ATIL MEGPTCL AEML MUL ATBSPL ATRL RRWTL CWRTL FBTL GTL APTL STL Khetri Discom Discom MTSCL WTPL 8/9/10 Mun
Slide 53: AESL's Operational Asset Portfolio as of March 2025 (2/2)
AESL’s Operational Asset Portfolio as of March 2025 (2/2) Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Obra-C Lakadia WRSS – XXI Jam Karur Kharghar Khavda- MP WKTL AESML Badaun (A) Khambaliya Transmission - Vikhroli Bhuj Package II Banaskantha Obra Lakadia Lakadia
Slide 54: AESL's Transmission Under-construction Asset Portfolio as of March 2025
AESL‘s Transmission Under-construction Asset Portfolio as of March 2025 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Khavda – Khavda Navinal – AEMIL Khavda – Bhadla - Line & SS Mahan NKTL WR-SR KTL KPS-1 STSL III – A Navinal Jamnagar Phase
Slide 55: AESL's Smart Metering Under-construction Portfolio as of March 2025
AESL‘s Smart Metering Under-construction Portfolio as of March 2025 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% MSEDCL MSEDCL BEST APDCL APEPDCL APCPDCL APSPDCL NBPDCL UPCL NSC-05 NSC-06 BEST Smart NE Smart Adani Adani Adani Adani Adani Adani Energy Adani Metering Ltd
Slide 56: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Energy Solutions Limited (together with its subsidiaries, the “Company” or “AESL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 57: Thank You
MUSHKILON KI adani 4 NAHI SUNTE, HUM KARKE DIKHATE HAIN, #HumKarkeDikhateHain @ adani Energy Solutions Thank You
Adani Energy Solutions — Debt Investor Presentation (May 2025) on 6ix