Azure Power Global Limited · OTC:AZREF
Azure Power Global — Investor Presentation (June 2020)
41 slides from Azure Power Global's investor presentation, June 2020
Slide 1: Investor Presentation June 2020
7 GW+ Pan India portfolio of solar assets India’s first private grid connected MW solar plant Issued India’s first solar Green Bond Investor Presentation June 2020 0|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: Executive Summary
Executive Summary 2
Slide 4: Azure Power Overview
Azure Power Overview (AZRE: NYSE) A Leading Pan Indian Solar Power Developer Portfolio of 7,115 MWs(1) (1,808 MWs Operational, 1,307 MW Contracted, 2,000 MW Committed and 2,000 MW Greenshoe (1,2) ) 6,948 MWs 167MWs Utility-Scale Projects Azure Roof Power •• Founded in 2008, built India’s first priva
Slide 5: 7,115 MW Committed Portfolio, 1,808 MWs Operational
7,115(1) MW Committed Portfolio, 1,808 MWs Operational ~90% (2) in High Irradiation Zone ~6%(2) in Mid Irradiation Zone Focus on Strong Counterparty Credit Punjab (214 MW) 214 MW Rajasthan (3,675 MW) BBB- & above 475 MW Uttar Pradesh (100 MW) 95% ~95% of the portfolio 100 MW 3,200 MW is Investment G
Slide 6: Visible Historical and Future Growth
Visible Historical and Future Growth Growing Portfolio with Strong Contracts in Place Substantial Revenue Growth to Portfolio Run-Rate(1)(2) 7,800 7,115 6,500 $711(1) 5,115 Revenues (US $ Million) 5,200 MWs 3,115 3,900 600 Committed 707 1,808 2,600 Under Construction 1,300 $144 $172 $112 - $44 $61 O
Slide 7: 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 completed Present Value of Equity(3) before expected revised COD. (No value for growth beyond current portfolio or cost reductions) $2,500 Ca
Slide 8: 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 9: Recent 4 GW Project Win Is Value Accretive
Recent 4 GW Project Win Is Value Accretive Tariff ~15% Present Value of Equity for 4 GW Win(2) higher than $1,000 Potential of (USD Mn) similar SECI Opportunity $800 around 6.0x central grid for 20%+ $600 EV/EBITDA connected equity IRRs $400 PV of Equity Value build cost auctions we $200 have won $-
Slide 10: 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 11: 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 12: Published First Sustainability Report; Launched Sustainability Website
Published First Sustainability Report; Launched Sustainability Website Highlights Avoided 5.2 mn tons of CO2 equivalents since inception (1) 50% saving last year in water consumption per unit of electricity generated (2) Aim to become water neutral over the coming years Environment Volunteer
Slide 13: Corporate Social Responsibility Programmes
Corporate Social Responsibility Programmes Promoting livelihood enhancement by providing Donation of modified wheelchair and two Promoting education by providing smart class in skill development across 7 sites in Gujarat wheelers to the disabled army veterans Government schools across multiple state
Slide 14: Strong Governance and Disclosure Standards
Strong Governance and Disclosure Standards Only Indian Solar Independent Power Producer listed on NYSE Standards reinforced by listing requirements Strong Corporate Governance Home country SEC & NYSE SGX-ST requirements that requirements regulatory also require regular requiring periodic requirement
Slide 15: Experienced Board Backed by Long Term Marquee Shareholders
Experienced Board Backed by Long Term Marquee Shareholders IFC Global Infrastructure Fund Increased stake in Azure Power to c.50.9% through multiple rounds & Made its first investment in company in 2010 and increased stake open market purchase through multiple rounds with current holding of c.24
Slide 16: Industry Overview
Industry Overview 15
Slide 17: 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 18: The Solar Advantage in India
The Solar Advantage in India Electricity Usage per Capita (MWh) 12.8 US: ~14x > India Azure’s solar plants have ~100 mn people without high availability Seasonal Energy direct power source Curve Summer Monsoon China: ~5x > India 4.3 India-Demand Peak Low 0.9 Solar-Generation Peak Low USA China India
Slide 19: Operating and Financial Metrics
Operating and Financial Metrics 18
Slide 20: 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 21: 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 22: Cash Flow to Equity 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 ( $32.9 ) 70 60 In US$ Millions 50 $43.0 $2.5 40 $37.3 30 20 10 0 FY'19 CFe from Additional Revenue Higher Cash Operating Higher Cash Interest Lower Debt
Slide 23: A Growing Balance Sheet
A Growing Balance Sheet As at March 31, 2019 As at March 31, 2020 (in million) (in million) INR INR US$## 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 24: 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$1) 23|Copyright
Slide 25: Appendix
Appendix 24
Slide 26: Historical Plant Load Factor (PLF); 1Q FY’21 Forecast
Historical Plant Load Factor (PLF); 1Q FY’21 Forecast 23.0% 22-23%1Q FY’21 forecast 22.3% 22.0% FY’20: 20.5% 21.5% 21.0% 20.5% FY’19: 18.6% 20.0% 19.4% 19.0% 17.9% 18.0% 16.8% 17.0% 17.7% 16.4% 16.0% 15.0% 1Q 2Q 3Q 4Q FY'19a FY'20a 25|Copyright © 2020 Azure Power |www.azurepower.com
Slide 27: DSO by Counterparty
DSO by Counterparty Amounts in US$ 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: Contacts
Contacts Investor Contact Media Contact Nathan Judge, CFA Samitla Subba ir@azurepower.com pr@azurepower.com +1 (917) 209-6750 +91-11- 4940 9854 39
Slide 41: Thank You
Thank You 40 40
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