Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q4 FY2020 Earnings Presentation
29 slides from Azure Power Global's earnings presentation, Jun 15, 2020
Slide 1: Fiscal Fourth Quarter 2020 Earnings Presentation
7 GW+ Pan India portfolio of solar assets India’s first private grid connected MW solar plant Issued India’s first solar Green Bond Fiscal Fourth Quarter 2020 Ended March 31, 2020 Earnings Presentation June 15, 2020 1|Copyright © 2020 Azure Power |www.azurepower.com
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This information contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, op
Slide 3: Key Highlights of Recent Developments
Key Highlights of Recent Developments No material adverse impact from COVID-19, to date; Operational assets on track; We expect MWs under construction will be Present Value of Equity(3) completed before expected revised COD. (No value for growth beyond current portfolio or cost reductions) $2,500 Ca
Slide 4: COVID-19 Update: Azure Power As A Safe Haven
COVID-19 Update: Azure Power As A Safe Haven No Material Adverse Impacts From COVID-19 Performance Illustrates Quality and Predictability of Assets and Cash Flows Strong Liquidity through at least March 31, 2021(1) With Superior Access to Capital and Operations, Azure Should Further Differentiate It
Slide 5: Ground Mount Construction and Financing Update: 1,290 MWs
Ground Mount Construction and Financing Update: 1,290 MWs Capacity Financial % Project (MWs) Offtaker Closure Expected COD Completed 100% of land in place and Expect completion Rajasthan 6 600 SECI Completed materials are being before revised COD delivered Recent financing closed Expect completion R
Slide 6: Industry and Regulatory Update
Industry and Regulatory Update Industry Update Regulatory Update Continued robust demand for new renewable energy in India – In light of the COVID disruption, renewable energy is deemed an despite the short-term blip in demand related to COVID-19, essential service. MNRE reiterated “must run status”
Slide 7: Historical and Future Strong Growth
Historical and Future Strong Growth MWs Operational Guidance MWs EBITDA, Cash Flow to Equity(2) and Debt 8,000 7,000 Forecast 6,000 USD Millions EBITDA: CAGR 32% $700 $575 - $675 5,000 4,000 $600 3,000 2,000 CAGR 45% $500 1,000 - $400 FY'17(a) FY'18(a) FY'19(a) FY'21(e) FY'22(e) FY'23(e) FY'24(e) FY
Slide 8: Plan For Equity Funding Requirements
Plan For Equity Funding Requirements Identified $150mn of equity sources towards Pursuing Lowest Cost of $600 million equity need to build 4 GWs Capital Fully equity funded for 3,115 MWs; Continue to expect that Identified opportunities since February 2020 to no new shares will be issued before at l
Slide 9: FY’20 Key Performance Metrics
FY’20 Key Performance Metrics 1,808 MW Operating 7,115 MW(3) Operating US$ 0.43m Project US$ 43.0 mn CFe for & Committed Cost/MW (DC) Operating Assets 25% increase(1) 112% increase 27% reduction(2) 15% increase(1) • 367 MW (610MW DC) commissioned • 707 MWs are under construction • DC cost per MW US$
Slide 10: Review of Q4 FY’20 Results
Review of Q4 FY’20 Results Reported Reported Reported 4Q FY’20 After % Change Adjustments* (in million) 4Q FY’19 4Q FY’20 4Q FY’20 Adjustments Adjusted Q4FY’20 Comments US$ INR INR US$ US$ vs Q4FY’19 2,847 3,675 48.7 0.6 49.3 31% 41% increase in operational DC MWs. $0.6 mn Revenue adjustment is for
Slide 11: Cash Flow to Equity (CFe) for Operating Assets: FY’20 vs FY’19
Cash Flow to Equity (CFe) for Operating Assets: FY’20 vs FY’19 15% growth in CFe from Operating Assets in FY’20 vs FY’19 100 90 $40.2 ( $4.2 ) 80 ( $32.9 ) 70 In US$ Millions 60 50 $43.0 $2.5 40 $37.3 30 20 10 0 FY'19 CFe from Additional Revenue Higher Cash Operating Higher Cash Interest Lower Debt
Slide 12: A Growing Balance Sheet
A Growing Balance Sheet As at March 31, 2019 As at March 31, 2020 (in million) (in million) INR INR US$## Cash, Cash Equivalents and Current 10,545 9,792 129.9 Investments* Property, Plant & Equipment, Net 83,445 95,993 1,273.4 Net Debt# 59,014 73,780 978.6 *Does not include Current and Non-Current
Slide 13: Reiterating FY’21 Guidance
Reiterating FY’21 Guidance 2,650 – 2,950 MWs INR 15,800 – 16,600 million(1) Operating by March 31, of Revenue for FY’21 2021 1Q FY’21 Revenue: INR 3,800 – 4,000 million Q1 FY’21 PLF 22%-23% _________________________ 1) US$ 210- 220 Mn (at March 31, 2020 exchange rate- INR75.39 to US$1) 13|Copyright
Slide 14: Appendix
Appendix 14|Copyright © 2020 Azure Power |www.azurepower.com
Slide 15: Historical Plant Load Factor (PLF); 1Q FY’21 Forecast
Historical Plant Load Factor (PLF); 1Q FY’21 Forecast 23.0% 22-23%1Q FY’21 forecast 22.3% 22.0% 21.5% 21.0% 20.5% 20.0% 19.4% 19.0% 17.9% 18.0% 16.8% 17.0% 17.7% 16.4% 16.0% 15.0% 1Q 2Q 3Q 4Q FY'19a FY'20a 15|Copyright © 2020 Azure Power |www.azurepower.com
Slide 16: DSO by Counterparty
DSO by Counterparty Amounts in US$ million On time/ Project Total Within Past due up Past due more DSO Customer Name Capacity (MWs) Name outstanding grace to one year than 365 days days (1) period 14 14 - - 74 SECI , NTPC, NVVN 689 8 1 5 2 423 Southern Power Distribution Com of AP Ltd(1) AP-1 50 5 1
Slide 17: Use of Non-GAAP Financial Measures: EBITDA
Use of Non-GAAP Financial Measures: EBITDA Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures of
Slide 18: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended March 31, Year Ended March 31, (in million) (in million) 2019 2020 2020 2019 2020 2020 INR INR US$ INR INR US$ Net profit (loss) 241 (394) (5.2) 138 (2,337) (30.9) Income tax expense/ (18) 82 1.1 153 489 6.5 (benefit) Inte
Slide 19: Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe)
Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe) Cash Flow to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP meas
Slide 20: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the year ended For the year ended March 31, 2019 March 31, 2020 (US$ millions) Operating Others Total Operating Others Total Sale of power 131.7 - 131.7 171.9 - 171.9 Cost of operations 11.5 - 11.5 15.2 - 15.2 General and administrative 7.1 10.3 17.4 15.1 17.1 32.3 Depr
Slide 21: Cash Flow to Equity (CFe) – Contd.
Cash Flow to Equity (CFe) – Contd. (1) Other items from the Statement of Cash Flows: These include most of the items that reconcile “Net (loss) gain” and “Operating profit before changes in working capital” from the Statement of Cash Flows. Other items include: loss on disposal of property plant and
Slide 22: Projects Commissioned - Utility
Projects Commissioned - Utility As of March 31, 2020 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in Credit Rating(6) (MW) (MW) (INR/kWh) Date(1) Years Operational – Utility Punjab 1 (3) Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 AAA Punjab
Slide 23: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As of March 31, 2020 Commercial PPA Duration DC Capacity Tariff Project Names Operation Capacity Off taker of PPA in Credit Ratings5) (MW) (INR/kWh) Date(1) (MW) Years Operational – Utility North & South Bihar Power Distribution Company Bihar1 (4) Q3 2016 10 11
Slide 24: Under Construction and Pipeline Projects –Utility and C&I
Under Construction and Pipeline Projects –Utility and C&I As of March 31, 2020 Expected Duration PPA Capacity Tariff Credit Ratings(2) Project Names Commercial Off taker of PPA in (MW) (INR/kWh) Operation Date(1) Years Under Construction Assam 1 Q3 2020 90 3.34 Assam Power Distribution Company 25 B+
Slide 25: Debt Overview
Debt Overview As of March 31, 2020 Maturity Profile (1,2) $600 $510.5 $500 $466.3 $400 $300 $200 $71.7 $85.0 $100 $43.4 $15.1 $0 FY'21 FY'22 FY'23 FY'24 FY'25 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split Consolidated Debt (2) $ 1,192.0 INR Debt Foreign Debt Short Term Debt Long Ter
Slide 26: Project Debt Schedule
Project Debt Schedule As of March 31, 2020 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Name of Project INR US$ (2) Andhra Pradesh 1 2,508 33.3 Fixed INR 2022 Bihar 1 439 5.8 Fixed INR 2022 Gujarat 1 928 12.3 Fixed INR 2022 Karnataka 1 528 7.0 Fixed INR 2022
Slide 27: Project Debt Schedule
Project Debt Schedule As of March 31, 2020 Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(2) Name of Project INR US$ (5) Punjab 3.1 and 3.2 1,219 16.2 Fixed INR 2024 Chhattisgarh 1.1,1.2 & 1.3 1,296 17.2 Floating INR 2029 Rajasthan 1 475 6.3 Fixed INR 2031 Rajast
Slide 28: Glossary of Select Terms
Glossary of Select Terms Accelerated Depreciation – Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the fiscal year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and
Slide 29: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 29|Copyright © 2020 Azure Power |www.azurepower.com