Adani Green Energy Limited · NSE:ADANIGREEN

Adani Green Energy — Investor Presentation (September 2019)

51 slides from Adani Green Energy's investor presentation, September 2019

  1. Slide 1: Adani Green Energy Limited Investor Presentation

    Adani Green Energy Limited Investor Presentation September 2019

  2. Slide 2: Disclaimer

    Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward- looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growth prospects, and fu

  3. Slide 3: Contents

    Contents 01 Adani Group A About Adani Group 02 Adani Green Energy 2A Company Overview, Strategic Priorities & Key Strengths 2B Industry Overview 2C Growth Strategy 2D Operational Performance 2E Financial Performance 2F Compelling Investment Case A Appendix STRICTLY CONFIDENTIAL

  4. Slide 4: Adani Group

    1.Adani Group A. About Adani Group STRICTLY CONFIDENTIAL

  5. Slide 5: Adani: world class infrastructure & utility portfolio

    Adani: world class infrastructure & utility portfolio Transport & Logistics Portfolio Utility & Power Portfolio Adani 62.3% 100% 100% 75% 75% 75% 75% APSEZ AAPT SRPCL 75% ATL APL AGEL AGL Port & Logistics Port Rail T&D IPP Renewables Gas DisCom AEL Incubator 100% 100% 100% 100% AAHL ATrL AWL Data Ai

  6. Slide 6: Adani: repeatable, robust & proven model to deliver RoE

    Adani: repeatable, robust & proven model to deliver RoE Phase Phases Origination Development Construction Operations Post Operations O&M Opportunity Pipeline EPC & Funding Operation Capital Mgmt • Analysis & • Site acquisition • Engineering & • Life cycle O&M market • Concessions and design planning

  7. Slide 7: Adani: repeatable, robust business model applied consistently to drive value

    Adani: repeatable, robust business model applied consistently to drive value Key Business Model Attributes Successfully applied across Infrastructure & utility platform  Development at scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Comm

  8. Slide 8: Adani: unparalleled value creation and rapid deleveraging supported by ESG

    Adani: unparalleled value creation and rapid deleveraging supported by ESG AEL Nov 1994 In Jun 2019 Value Invested Is now Creation Rs 150 >30% CAGR Rs 94,000 Over same period index CAGR 9.6% 2013 2019 De - leveraging Debt/EBITDA reduced by 44% Debt/EBITDA 8.6x 4.9x 2014 2016 2019 Independent No fina

  9. Slide 9: Adani: Largest Integrated Energy Player in India

    Adani: Largest Integrated Energy Player in India End to End Integration in the Energy Value Chain INPUT GENERATION DISTRIBUTION, TRANSMISSION, UTILITIES RESOURCE/EQUIPMENT Panel Coal Business Thermal Power Renewables Solar Park Trans. & Distribution Manufacturing  Largest  1.2 GW  Installed capac

  10. Slide 10: Adani: Key Stakeholder touchpoints across energy landscape in India

    Adani: Key Stakeholder touchpoints across energy landscape in India Ministry of (conventional) Power (MoP) / Ministry of New & Renewable Energy Ministry (MNRE) Central Electricity Authority of India (CEA) Advisory Advisory arm of MoP on matters relating to the National Electricity Policy and formula

  11. Slide 11: Adani Green Energy: Company Overview, Strategic Priorities & Key Strengths

    2.Adani Green Energy A. Company Overview, Strategic Priorities & Key Strengths STRICTLY CONFIDENTIAL

  12. Slide 12: AGEL: Leading Pan-India Renewable Player, Diversified Portfolio

    AGEL: Leading Pan-India Renewable Player, Diversified Portfolio 5,290* MW Portfolio | 2,320 MW Operational 100%  Demerged from Adani Enterprises 64 Projects in 11 States Punjab 25 Year PPAs  Listed in June 2018 Uttar Pradesh 100 Rajasthan Shareholding Structure 1240 20 175 100 Promoter Public Guja

  13. Slide 13: AGEL's Strategic Priorities

    AGEL’s Strategic Priorities Growth and • Vision to be one of the leading global renewable players Returns Focus • Disciplined investment decisions framework to create shareholder value Optimal • Leverage internal accruals to drive RoE with accretive growth Capital Management • Established pedigree t

  14. Slide 14: Project Execution – Key Strengths

    Project Execution – Key Strengths Land Engineering Procurement Construction Acquisition • Leverage group • Strong in-house design • Leverage group strength • Strong in-house experience in land team with vast of large vendor base with knowledge base acquisition and statutory experience in renewables

  15. Slide 15: Source highest quality equipment from reputed OEMs

    Source highest quality equipment from reputed OEMs Solar Modules Inverters  AGEL uses both Central and String inverters  Best Vendors : Tier-1 vendors only;  Strategic Relationship with 6 Super League Best in class Huawei String Inverters and ABB/Hitachi Central Inverters are being used at variou

  16. Slide 16: Case Study 1: 648 MW Kamuthi Solar Project

    Case Study 1: 648 MW Kamuthi Solar Project Testament to our execution capabilities  AGEL developed the 648 MWAC world’s then largest solar power plant at a single location spread over 2,340 acres in Kamuthi, Tamil Nadu  Mammoth execution undertaken in less than 9 months, of which 2 months featured

  17. Slide 17: Case Study 2: Execution of 33 Projects amidst change of regulations

    Case Study 2 : Execution of 33 Projects amidst change of regulations Number of under-construction projects during GST and demonetization in each state Status of Projects during demonetization / GST  33 projects were under construction during demonetization, GST  These projects were spread across t

  18. Slide 18: Our O&M Philosophy

    Our O&M Philosophy  Cluster based operating model to ensure adequate support and governance at each site Operational  Optimized module cleaning cycle by comparing revenue loss due to soiling against the cost of module cleaning Strategy  Maintenance and Operational Excellence based on real time da

  19. Slide 19: RONC – World Class Monitoring and Analytics

    RONC – World Class Monitoring and Analytics RONC (Remote Operations Nerve Center) RONC Operational Flow  Centralization of overall management of all Adani sites from a single location Site(s) Level Data Capture  Data Analytics driven decision making  Drive world class operational performance as s

  20. Slide 20: Adani Green Energy: Industry Overview

    2.Adani Green Energy B. Industry Overview STRICTLY CONFIDENTIAL

  21. Slide 21: Renewables – Attractive Industry Outlook

    Renewables – Attractive Industry Outlook Low Per Capita Power Consumption Untapped Solar and Wind Resources Low Generation Share Per capita power consumption (KWh) Nuclear Potential Installed capacity in GW (Apr-2019) Hydro 3.0% US: ~11.3x India 10.0% 749.0 28.2 GW expected 12,984 China: ~3.4x India

  22. Slide 22: Recent Industry Developments

    Recent Industry Developments  Ministry of Power (MoP) mandates DISCOMs to open and maintain LC’s as payment security under PPAs  Despatch to DISCOMs to be scheduled after written confirmation by generators with regards Power Sector to opening of LC by DISCOMs Policy Reforms  In case LC is not ope

  23. Slide 23: Adani Green Energy: Growth Strategy

    2.Adani Green Energy C. Growth Strategy STRICTLY CONFIDENTIAL

  24. Slide 24: Development Risk Profile Improving

    Development Risk Profile Improving 5,290 MW plus Future Projects 1 GW COD Operational UC 4,560 in FY 1,000 22 2,520 1.5 GW 2,590 COD in FY 21 2,570 2,000 612 4,290 0.8 GW COD in 1,192 2,770 FY 20 798 1,958 1,970 485 808 313 FY16 FY17 FY18 FY19 FY20E FY21E In the forecast period given, AGEL is planni

  25. Slide 25: Profitable Growth Leading to Superior Returns

    Profitable Growth Leading to Superior Returns Completed/ Average Capacity Expected Project Revenue2 & 3 EBITDA3 Tariff Capex / EBITDA (in MW) Cost1 (in Rs Cr) (in Rs Cr) (in Rs/kWh) (in Rs Cr) Operational Portfolio4 Solar 2,148 4.82 13,156 2,322 2,193 6.00 5 Wind 172 3.87 1,035 182 172 6.03 Total 2,

  26. Slide 26: Renewable Bids in Q1 FY20: Selective Bidding Approach

    Renewable Bids in Q1 FY20: Selective Bidding Approach Tariff Weighted Total Capacity Capacity L1 Bid offered by AGEL Average Tender Type Auctions Bid by won by Tariff AGEL Successful Tariff (MW) AGEL (MW) AGEL (MW) (Rs/kWh) (Rs/kWh) (Rs/kWh) GUVNL - Raghanesda Solar Park - Gujarat 700 - - - 2.65 SEC

  27. Slide 27: Development Pipeline: Key Differentiating Factor for AGEL

    Development Pipeline: Key Differentiating Factor for AGEL 5.3 GW Contracted (2.3 GW Operational ~5 GW Wind Sites ~9 GW Solar sites ~20 GW sites + 2.9GW under- under development under development under operation/ development construction) Expected Wind growth is supported by ~5 GW of wind sites under

  28. Slide 28: Adani Green Energy: Operational Performance

    2.Adani Green Energy D. Operational Performance STRICTLY CONFIDENTIAL

  29. Slide 29: Operational Performance

    Operational Performance Average Capacity* (MW AC) PLF % (AC) Solar Wind Solar Wind 35.85% 1,914 29.81% 30.96% 1,898 1,898 1,898 1,744 25.89% 25.31% 21.68% 21.66% 20.08% 20.02% 8.33% 60 60 60 72 72 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Plant Availability Volu

  30. Slide 30: 1.9 GWac Solar Portfolio Operational Bridge

    1.9 GWac Solar Portfolio Operational Bridge Actual vs. Technical Estimates Actual vs. Estimated Quarterly CUF for 1.9 GWAC Portfolio Target CUF 27.54% 28.00% 25.55% 26.00% 23.59% 24.00% 21.44% 22.00% 25.31% 20.00% Actual Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Annual CUF Target for existing Solar capacity o

  31. Slide 31: Adani Green Energy: Financial Performance

    2.Adani Green Energy E. Financial Performance STRICTLY CONFIDENTIAL

  32. Slide 32: Robust financial performance: FY19 vs. FY18

    Robust financial performance: FY19 vs. FY18 Revenue (Rs Cr.)1 EBITDA2 (Rs Cr) and margin5 (%) Cash Profit6 (Rs. Cr) 1,921 1,710 792 +75% +105% +105% 452 939 834 90% 86% FY18 FY19 FY18 FY19 FY18 FY19 Investment in CAPEX (gross) Net debt2 and Shareholders’ equity3 (Rs Net External Debt for operating (

  33. Slide 33: Robust financial performance: Q1 FY20 vs. Q1 FY19

    Robust financial performance : Q1 FY20 vs. Q1 FY19 Revenue (Rs Cr.)1 EBITDA2 (Rs Cr) and margin3 (%) Cash Profit4 (Rs. Cr) 554 +17% 251 257 472 496 439 2% +13% 93% 90% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Operating Assets (Gross Block) Net debt5 and Shareholders’ equity6 Net Debt for oper

  34. Slide 34: Other Financial Metrics

    Other Financial Metrics (Rs.Cr.) EBITDA / Gross block Q1’20 FY19 EBITDA (TTM) 1,767 1,710 Average Gross Block1 11,884 11,347 EBITDA / Gross block 14.9% 15.1% PBT based on SLM depreciation Currently, the Group is following WDV method of depreciation. Based on SLM, PBT would be as follows: Q1’20 Q4’19

  35. Slide 35: Debt Summary

    Debt Summary Debt Split by Currency LT vs. ST Debt Split 5,075, 1,029, Consolidated Debt Rs 12,643 Cr (8%) 40% Foreign Long Debt Term Average interest rate 10.7% Debt Average debt maturity 7.7 years Indian 7,568, for LT debt Rupee Short 60% Debt Term Average door to door 12.6 years 11,614 Debt tenur

  36. Slide 36: Power Generation Receivables Ageing

    Power Generation Receivables Ageing (Rs.Cr.) # Overdue Off Takers Not Due* Total 0-60 days 61-90 days 91-120 days 121-180 days >180 days Overdue** TANGEDCO 188 139 65 50 84 115 454 NTPC 72 - - - - - - SECI 52 - - - - - - Others 70 7 3 3 3 11 27 Total 382 146 68 53 87 126 481 LC Status as of 31st Aug

  37. Slide 37: Capital Structure as enabler for growth

    Capital Structure as enabler for growth Case Study: RG-I* : AGEL created RG-1 which comprised of Debt Philosophy three SPVs having total operational capacity of 930MWac Efficient refinancing unlocked cash flows for growth •NTPC – 370 MW (40%)  100% Project debt self-amortizing before end Pool with

  38. Slide 38: Adani Green Energy: Compelling Investment Opportunity

    2.Adani Green Energy F. Compelling Investment Opportunity STRICTLY CONFIDENTIAL

  39. Slide 39: AGEL: Compelling Investment Case

    AGEL: Compelling Investment Case Infrastructure  Adani group is a leader in infrastructure –ports, T&D, thermal power and renewables lineage  Proven track record of excellence in development & construction  India plans to grow renewables from 75GW to 227GW in next few years Significant  Economic

  40. Slide 40: Appendix

    APPENDIX STRICTLY CONFIDENTIAL

  41. Slide 41: Financial Summary – Income Statement

    Financial Summary – Income Statement Particulars (Rs Cr) Q1’20 Q4’19 Q1’19 FY19 Revenue from operation - Sale of Energy 554 544 472 1921 -Other Operating Income 107 137 - 137 Other income 14 38 10 73 Total Revenue 675 719 482 2131 Cost of material consumed and others 104 130 - 130 Other expenses inc

  42. Slide 42: Financial Summary – Balance Sheet

    Financial Summary – Balance Sheet Particulars (Rs cr) FY19 FY18 Assets Non Current Assets Fixed Assets: Gross Block 12,331 9,996 Less :-Accumulated Depreciation (1,943) 876 Net Block 10,388 9,120 Capital work-in-progress 743 1,725 Financial Assets 507 453 Deferred Tax Assets 376 246 Other Non Curren

  43. Slide 43: Portfolio Details - Operational

    Portfolio Details - Operational Contracted Capacity Counterparty SPV Project Name / Location Type Tariff COD Capacity (AC) (DC) Name Credit Rating Term AGETNL Solar 216 260 7.01 Mar-16 TANGEDCO ICRA (B) 25 RSPL Solar 72 86 7.01 Feb-16 TANGEDCO ICRA (B) 25 AGETNL KREL Solar 72 86 5.761&2 Mar-16 TANGE

  44. Slide 44: Portfolio Details – Under Construction

    Portfolio Details – Under Construction Project Name / Capacity Capacity SPV Type Tariff COD Counterparty Location (AC) (DC) Name Credit Rating Term AGEONEL Gujarat Solar 150 2.67 Nov-20 GUVNL ICRA (A+) 25 210 GSBPL Gujarat Solar 100 2.44 Aug-20 GUVNL ICRA (A+) 25 140 Kilaj SMPL – SECI Rajasthan Sola

  45. Slide 45: Strong sponsor & professional management with strong execution track-record

    Strong sponsor & professional management with strong execution track-record Jayant Parimal Ashish Garg Rajesh Shrivatsava CEO CFO COO - Projects  Mr. Jayant Parimal has been associated with  Mr. Ashish Garg has been with AGEL  Mr. Rajesh recently joined the group the group since 2015 since June 2

  46. Slide 46: Hybrid technology driving Round the Clock Solution

    Hybrid technology driving Round the Clock Solution Key Considerations for Hybrid  Solar and Wind Power Plants characteristically generate power at different intervals and during complementary seasons  This helps to ensure that the level of energy being fed into the grid is steadier than that of Wi

  47. Slide 47: Solar PV modules have a life well beyond the PPA life

    Solar PV modules have a life well beyond the PPA life of 25 years What is Module Degradation? Year of installed life 1  Light Induced Degradation (LID), permanently degrades modules 70 starting from the first ray of solar radiation and extends further up 60 to six months 60  Annual Degradation – E

  48. Slide 48: 930 MWac Restricted Group-1

    930 MWac Restricted Group-1 Restricted Group-1 comprises three SPVs, i.e. Parampujya Solar Energy Private Limited, Prayatna Developers Private Limited & Adani Green Energy UP Limited, having total operational capacity of 930MWac which was created for USD 500mn Green Bond, issuance in May 2019 STRICT

  49. Slide 49: 930 MWac Solar Portfolio Bridge: RG-1

    930 MWac Solar Portfolio Bridge : RG-1 Actual vs. Technical Estimates P75@ 26.30% d P90@ 25.39% AGEL RG-1 has achieved its P75 PLF targets, marching towards P50 number Note: 50 MW Jhansi solar plant actual generation considered from 1st June onwards, when the plant was capitalized 48 P50 target for

  50. Slide 50: RG-1 – Key Financials and Receivable Ageing

    RG-1 – Key Financials and Receivable Ageing Key Financials (Rs. Cr.) Particulars (Rs Cr) Q1’20 FY19 Revenue from Operation 251 836 EBITDA 223 731 Outstanding loan as on June 2019 of Rs 4,539 Cr Power Generation receivables Ageing Overdue Off Takers Not Due* 61-90 121-180 >180 Total 0-60 days 91-120

  51. Slide 51: Thank You

    Thank You STRICTLY CONFIDENTIAL

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