Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — Q1 FY2020 Earnings Presentation
33 slides from Suzlon Energy's earnings presentation, Aug 14, 2019
Slide 1: Suzlon Energy Limited Q1 FY 2020
Suzlon Energy Limited Q1 FY 2020 14 August 2019
Slide 2: Disclaimer
Disclaimer • This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suzlon Energy Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Milestones Achieved
Milestones Achieved Annual Market Share (FY19) Cumulative Market Share* ~39% ~35% Market share gains for 4th consecutive Market leadership maintained for over year two decades Largest fleet under maintenance* 24% market share 2.0+ GW of 12.5 GW in India in bidding regime^ 2nd largest O&M Company in
Slide 4: FY20 & Onwards: Volume Visibility in India
FY20 & Onwards: Volume Visibility in India Visibility for next two years – For India Wind Market 6 - 8 GW ~3 GW 1.5 GW FY19 FY20 FY21 Challenges Resolution Evacuation approvals granted most of the auctioned capacity Delays in evacuation approvals PGCIL working on creation of evacuation infrastructur
Slide 5: Auction Order Wins and Customer Profile
Volume Share in Auctions Concluded Till Date Auction Wise Order Wins for Suzlon (MW) 2,043 202 588 Deliveries Fully Concluded commissioned 752 252 250 SECI I SECI II SECI III SECI IV State Bids Total → Over 24% of auctioned and tied up orders → Top Quality Customer Profile: Orders from marquee Utili
Slide 6: Debt Reduction Program
Debt Reduction Program Debt Reduction Program In Progress Focus areas: Steps Taken: Continues to work on significant Lenders* have entered Intercreditor Agreement debt reduction through strategic (ICA) under the Reserve Bank of India (Prudential initiatives Framework for resolution of stressed a
Slide 7: Financial Performance
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 7
Slide 8: Q1 FY20 Financial Metrics
Q1 FY20 Financial Metrics (₹ Cr.) Q1 FY20 Q1 FY19 Particulars Remarks Unaudited Unaudited Net Volumes (MW) 19 155 Net Revenue 833 1,272 Primarily due to low volume Gross Profit 437 489 Primarily due to revenue mix Gross Margin 52.5% 38.5% Employee Expenses 208 194 Other Expenses (net) 167 218 Includ
Slide 9: Net Working Capital
Net Working Capital Fig. in ₹ Cr. -23% 2,401 1,999 Working Capital to optimize under Auction regime 1,839 1,667 Reduced regulatory uncertainty 1,552 Elongated execution schedule Smoothened out quarterly volumes Large scale project size Make to Order Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20
Slide 10: Stable Service Revenue Insulated From Business Cycles
Stable Service Revenue Insulated From Business Cycles Operations and Maintenance Revenues (₹ Cr.) ~15 GW of Assets under Management (AUM) ― 12+ GW in India; ~3 GW Overseas +9.7% 1,907 501 ― 2nd Largest O&M player in India Power Sector, Internal 118 457 21 31 +12.7% after NTPC Nearly 100% renewal
Slide 11: Order Backlog
Order Backlog Particulars Capacity Remarks Central Auctions 1,289 MW All orders backed by signed PPA’s State Auctions 164 MW Retail, Captive, PSU & IPP 84 MW Backed by advance, Not dependent on PPAs Wind Firm Order Book 1,537 MW Value of Order Book ₹ 8,304 Cr. Framework Agreements / PPA in hand >700
Slide 12: Debt Overview
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 12
Slide 13: Term Debt Profile
Term Debt Profile 30th Jun’19 31st Mar’19 US$ 569 M US$ 569 M SBLC Backed AERH Loans (₹ 3,917 Crs.) (₹ 3,924 Crs.) US$ 172 M US$ 172 M FCCB (₹ 1,219 Crs.) (₹ 1,205 Crs.) US$ 55 M US$ 55 M Other FX Term Debt (₹ 379 Crs.) (₹ 379 Crs.) Rupee Term Debt ₹ 2,650 Cr. ₹ 2,665 Cr. Gross Term Debt ₹ 8,165 Cr.
Slide 14: Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 14
Slide 15: Key Developments in Industry
Key Developments in Industry Key Changes in SECI Bidding Guidelines Land to be secured by SCOD, not by Financial Closure (Extended period from 7 months to 18 months) Requirement of “Ownership of land” changed to “possession of land” SCOD 18 months form the date of PPA or PSA signing whichever
Slide 16: Strong Visibility On Growth For India Wind Market
Strong Visibility On Growth For India Wind Market Feed-in-Tariff + Captive / PSU / Retail Auction + Captive / PSU / Retail 10.6 GW commissioned in last 3 years 10+ GW commissioning by 2021 (GW) 6.0 – 8.0 5.5 3.4 ~3.0 1.8 1.5 FY16 FY17 FY18 FY19 FY20E FY21E Source: MNRE Source: Internal Estimates Key
Slide 17: Technology
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 17
Slide 18: Focus On Reducing LCOE
Focus On Reducing LCOE Higher energy yield Lower cost of energy Sustains Lower Tariffs >70% Increase in Energy Yield S97-120 S128 S111-90 S111-120 S111-140 S120 2.6-2.8 MW 18 Over 4,500 turbines of 2.1 MW platform across 17 countries
Slide 19: S120: Four Variants Launched
S120: Four Variants Launched S120 – 140 HLT S120 – 140 HCT S120 – 120 STT S120 – 105 TT (Dec ‘18) (Sep ‘18) (Jan ‘19) (Jun ‘18) Hybrid Lattice Tower Hybrid Concrete Tower Smart Tubular Tower Tubular Tower Reduces LCoE and improves ROI for customers >1,100 MW orders already booked 19 Continued focus
Slide 20: Product Developments
Product Developments S128: New Products SB 63 – Won SKOCH award for Corporate Excellence RLMM Listing completed All Testing & Measurement completed S128 – 140 HLT S128 – 105 TT Multiple Tower Options (Hybrid Lattice, Steel Tubular) 20 Enables us to reach untapped wind sites in challenging terr
Slide 21: Pioneer In India Offshore
Pioneer In India Offshore Support Platform Offshore LiDAR • India’s 1st Private Far Offshore Met Station ‒ Opportunity to harness India’s 7,600km coastline ‒ Government plans to auction 5 GW of Offshore project next year • State of Art Installation ‒ 16km from the Shore Powered Through Solar ‒ 11m W
Slide 22: Global In-House R&D Capabilities
Global In-House R&D Capabilities Suzlon Technology Locations: Hamburg - Development & Integration Hamburg - Certification Germany Rostock - Development & Integration Rostock - Design & Product Engineering - Innovation & Strategic Research Hengelo The Netherlands Hengelo - Blade Design and Integratio
Slide 23: Suzlon Strengths
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 23
Slide 24: Suzlon Strengths In India Wind Market
Suzlon Strengths In India Wind Market Full Turnkey Solution Pan India Presence Provider Technology Leadership Strong Customer Relationship Best In Class Service 24+ Years Track Record Capabilities 24 End-to-end service provider with strong presence across value chain & customer segments
Slide 25: Accolades
Accolades • World’s 1st solar project quality certification for Suzlon’s 100 MW project • DNV GL confirms safety features and technical compliance • Testament of our commitment to high quality standards • Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition • For uniform profil
Slide 26: 12.5 GW Wind Energy Installations In India
12.5 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector Largest fleet under Operation and Maintenance fold in India Ranked No. 2 in Power Sector (31st Mar’19) # of Turbines MW <= 1 MW 1,678 777 >1 MW < 2 MW 4,268 5,774 =>2 MW 2,834 5,950 Total 8,780 12,501 2.0 GW • 35% - All Ind
Slide 27: Suzlon's Global Presence
Suzlon’s Global Presence As on 31st Mar 2018 2 5 2 1 North 6 America 3 1 2,779 MW 4 Asia 3 5 13,462 MW South America Europe 806 MW 508 MW 4 South Australia Africa 764 MW 139 MW 6 27 Suzlon’s strong relationships across regions positions it well Map not to scale. All data, information, and map is pro
Slide 28: USA PTC Volume: ~500 MW Pipeline Created
USA PTC Volume: ~500 MW Pipeline Created For 100% PTC Projects Production Tax Credit (PTC) Extension: Huge Volume Opportunity • PTC in USA extended until 2019 with benefits stepping down every year before phase out • In order to qualify, projects only need to start construction and make a minimum 5%
Slide 29: Detailed Financials
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 29
Slide 30: Consolidated Income Statement
Consolidated Income Statement (₹ Cr.) Q1 FY20 Q4 FY19 Q1 FY19 FY19 Particulars Unaudited Unaudited Unaudited Audited Revenue from operations 833 1,421 1,272 4,978 Less: COGS 396 953 783 2,998 Gross Profit 437 469 489 1,980 Margin % 52.5% 33.0% 38.5% 39.8% Employee benefits expense 208 249 194 874 Ot
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ Cr.) Liabilities Jun-19 Mar-19 Assets Jun-19 Mar-19 Shareholders' Fund -8,805 -8,498 Non Current Assets Non controlling interest -7 -5 (a) Property, Plant and Equipment 1,257 1,147 -8,812 -8,503 (b) Intangible assets 326 335 (c) Investment property 37 37 (d) Capital wor
Slide 32: Consolidated Net Working Capital
Consolidated Net Working Capital (₹ Cr.) 30-Jun-19 31-Mar-19 30-Jun-18 Inventories 2,775 2,914 2,923 Trade receivables 1,741 1,881 2,720 Loans & Advances and Others 1,684 1,806 1,749 Total (A) 6,200 6,601 7,392 Sundry Creditors 1,757 2,175 2,627 Advances from Customers 1,041 1,490 935 Provisions and
Slide 33: Thank You
CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 THANK YOU 33