Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q1 2021 Earnings Presentation
27 slides from Azure Power Global's earnings presentation, Aug 14, 2020
Slide 1: Fiscal First Quarter 2021 Ended June 30, 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 First Quarter 2021 Ended June 30, 2020 Earnings Presentation August 14, 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 7,115 MW Portfolio: 1,809 MWs Operational, 1,306 MWs Under Construction, 4,000 MWs Committed(2) Key Developments Sustainability – Awarded Most Sustainable Company in the Solar Present Value of Equity(2) (Does not consider value for growth beyond current Energy I
Slide 4: Commitment to Create Shareholder Value
Commitment to Create Shareholder Value Focused on value creation; all projects must earn a return above our cost of capital and we will pursue the lowest cost of capital Focused only on best counterparties with the strongest track records of payment (i.e. NTPC, SECI) Will not win projects for just g
Slide 5: Projects Under Construction Update
Projects Under Construction Update Expect completion before expected revised COD Rajasthan 6 - 600 MWs Assam - 90 MWs (1) • PPA COD: Q1 CY’21 • COD(2): Q3 – Q4 CY’20 • Financing: Completed • Financing: Completed • Land: 100% • Land: Most of land is in place for 65 MWs • Construction: transmission; f
Slide 6: Industry and Regulatory Update
Industry and Regulatory Update Industry Update Regulatory Update Continued strong growth opportunities remain despite COVID- Safe Guard Duties (SGD) were extended for another year and 19. During the quarter, 5.9 GWs of tenders were released and apply to imports of modules from China, Thailand and Vi
Slide 7: Review of Q1 FY'21 Results
Review of Q1 FY’21 Results Reported Reported Reported 1Q FY’21 After % Change Adjustments* (in million) 1Q FY’20 1Q FY’21 1Q FY’21 Adjustments Adjusted Q1FY’21 vs Comments US$ INR INR US$ US$ Q1FY’20 3,389 3,940 52.2 - 52.2 16% 21% increase in operational DC MWs. Additional revenue Revenue of $1 mil
Slide 8: Cash Flow to Equity (CFe) for Operating Assets: 1Q FY'21 vs 1Q FY'20
Cash Flow to Equity (CFe) for Operating Assets: 1Q FY’21 vs 1Q FY’20 45% growth in CFe from Operating Assets YoY $30 ~$1.4 mn of expenses $6.3 ( $6.0 ) were deferred into future quarters due to COVID-19 $25 $7.3 ( $0.9 ) $21.7 $20 In US$ Millions $15.0 $15 $10 $5 $0 1Q FY'20 CFe from Additional Reve
Slide 9: Balance Sheet
Balance Sheet As at March 31, 2020 As at June 30, 2020 (in million) (in million) INR INR US$## Cash, Cash Equivalents and Current 9,792 7,971 105.5 Investments* Property, Plant & Equipment, Net 95,993 98,759 1,307.8 Net Debt(1) 73,780 76,249 1,009.5 Hedging Asset 6,292 7,435 98.4 *Does not include C
Slide 10: DSO by Counterparty
DSO by Counterparty Amounts in US$ million On time/ Past due Project Net Within Past due up DSO Customer Name Capacity (MWs) more than 365 Name Receivables grace to one year days (1) days period(1) SECI , NTPC, NVVN 689 13.5 13.4 0.1 _ 68 AP-1 Southern Power Distribution Com of AP Ltd(1) 50 9.8 1.2
Slide 11: 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 2Q FY’21 Revenue: INR 3,200 – 3,400 million Q2 FY’21 PLF 18%- 19% _________________________ 1) US$ 209- 220 Mn (at June 30, 2020 exchange rate- INR75.53 to US$1); ~90% of the
Slide 12: Historical and Future Strong Growth
Historical and Future Strong Growth MWs Operational Guidance MWs Gross Margin(2), Cash Flow to Equity for 8,000 7,000 Operating Assets(3) and Debt Forecast 6,000 USD Millions Gross Margin: CAGR $700 5,000 $575 - $675 30% 4,000 CAGR $600 3,000 42% 2,000 $500 1,000 - Gross Margin: $400 FY'17(a) FY'18(
Slide 13: Appendix
Appendix 13|Copyright © 2020 Azure Power |www.azurepower.com
Slide 14: Historical Plant Load Factor (PLF); Annual, Quarterly and 2Q FY'21 Forecast
Historical Plant Load Factor (PLF); Annual, Quarterly and 2Q FY’21 Forecast 23.0% Q1’ FY’21 PLF: 23.1% 22.3% 22.0% 21.5% 21.0% 20.5% Annual PLF 20.0% FY'20 19.5% 19.4% FY'19 18.6% 17.9% 19.0% FY'18 18.2% 18 – 19% PLF 2Q FY’21 forecast 18.0% 17.0% 17.7% 16.4% 16.0% 16.8% 15.0% 1Q 2Q 3Q 4Q FY'19a FY'2
Slide 15: Use of Non-GAAP Financial Measures: EBITDA
Use of Non-GAAP Financial Measures: EBITDA Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures of
Slide 16: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended June 30, (in million) 2019 2020 2020 INR INR US$ Net profit 171 46 0.6 Income tax expense 144 317 4.2 Interest expense, net 1,560 2,163 28.7 Depreciation and amortization 623 755 10.0 Loss on foreign currency exchange 50 1
Slide 17: 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 18: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ millions) June 30, 2019 June 30, 2020 Operating Others Total Operating Others Total Sale of power 44.9 0.0 44.9 52.2 - 52.2 Cost of operations 3.9 0.0 3.9 3.5 - 3.5 General and administrative 4.5 2.7 7.2 1.6 3.4 5.0 Deprecia
Slide 19: Cash Flow to Equity (CFe) – Contd.
Cash Flow to Equity (CFe) – Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ Nil and US$ 0.1 million, share based compensation of US$ 0.2 million and US$ 0.9 million, realized gain on investment of US$ Nil million and US$
Slide 20: Projects Commissioned - Utility
Projects Commissioned - Utility As on June 30, 2020 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in Credit Ratings (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 2.1
Slide 21: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As on June 30, 2020 Commercial PPA Duration DC Capacity Tariff Project Names Operation Capacity Off taker of PPA in Credit Ratings (MW) (INR/kWh) Date(1) (MW) Years Operational – Utility North & South Bihar Power Distribution Bihar 1 (3) Q3 2016 10 11 8.39 25 B
Slide 22: Under Construction Projects –Utility and C&I
Under Construction Projects –Utility and C&I As on June 30, 2020 Duration Expected Commercial PPA Capacity Tariff Credit Project Names Off taker of PPA in Operation Date(1) (MW) (INR/kWh) Ratings Years Under Construction Assam 1 Q3 - Q4 2020 90 3.34 Assam Power Distribution Company 25 B+ Rajasthan 6
Slide 23: Debt Overview
Debt Overview As of June 30, 2020 Maturity Profile (1,2,3) $600 $531.0 $500 $470.8 $400 $300 $200 $73.8 $86.6 $100 $28.7 $22.6 $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 (2,3) $ 1,213.5 INR Debt Foreign Debt Short Term Debt Long
Slide 24: Project Debt Schedule
Project Debt Schedule As of June 30, 2020 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Name of Project INR US$ (2) Andhra Pradesh 1 2,508 33.2 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 K
Slide 25: Project Debt Schedule
Project Debt Schedule As of June 30, 2020 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Name of Project INR US$ (5) Punjab 3.1 and 3.2 1,219 16.1 Fixed INR 2024 Chhattisgarh 1.1,1.2 & 1.3 1,276 16.9 Floating INR 2029 Rajasthan 1 467 6.2 Fixed INR 2031 Rajastha
Slide 26: 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 27: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 27|Copyright © 2020 Azure Power |www.azurepower.com