Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — Investor Presentation (March 2006)
27 slides from Suzlon Energy's investor presentation, March 2006
Slide 1: Suzlon Energy Ltd.
Suzlon Energy Ltd. “Powering a Greener Tomorrow” March, 2006 1
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation, which contain words or phrases such as "will", "would", "expect", "believe", and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-lookin
Slide 3: Table of Contents
Table of Contents Energy – Global Scenario – India Scenario Suzlon - Business Overview Financial Highlights Growth Strategy 3
Slide 4: Energy and Wind: Global Environment - Shift Towards Wind as an Energy Source
Energy and Wind: Global Environment Shift Towards Wind as an Energy Source… World electricity demand expected to double Accumulated Installed Capacity (Year End) between 2002 and 2030 (1) 59681 – Required to add 4,800 GW of new capacity to 60000 meet projected demand % 47912 .39 50000 24 – Estimat
Slide 5: Energy and Wind: Global Environment - Phenomenon Prevalent across the Globe
Energy and Wind: Global Environment …Phenomenon Prevalent across the Globe Europe, with 40,500 MW, accounted for 69% of the cumulative installations as of 31st December 2005 (3) – Wind is becoming a preferred energy source in the EU - accounted for 23.4% of the net increase in generating capacity
Slide 6: Global Wind Energy: On a Strong Growth Path
Global Wind Energy: On a Strong Growth Path Global wind energy sector expected Key Markets Wind Power Status 2004 vs. 2009E : Cumulative Installed Capacity (MW) to grow to 117,412 MW between 2004 and 2009E CAGR (2004 – 2009E) 23% 32% 38% 23% Region-wise capacity growth 18850 10000 20000 expected
Slide 7: Indian Energy Environment: Potential for Growth in Energy Consumption
Indian Energy Environment Potential for Growth in Energy Consumption India has been characterized by energy shortages – Installed capacity of 115,544 MW, as of March 2005 – Demand exceeded supply by 7.3% with peak shortage at 11.7% (1) Strong growth potential for electricity consumption in India
Slide 8: Wind Energy - India in the Global Scenario Placed Favorably
Wind Energy - India in the Global Scenario Placed Favorably Largest market in Asia and 4th largest market globally in terms of 2005 capacity additions – Added 1,430 MW – Represented 12.2% of total MW added globally 4th largest market globally in terms of cumulative installations of 4,430 MW as o
Slide 9: Indian Wind Energy: On the Upswing
Indian Wind Energy : On the Upswing India has witnessed high growth rates in Wind Energy - Capacities capacity installations since 2002 – Installed capacity at 4,430 MW, up from 1,702 (MW) CAGR 37.56% MW in 2002, CAGR of 37.56% (‘2) 4 ,4 3 0 5000 – Annual installations increased from 220 MW in 3 ,
Slide 10: Key Growth Drivers for Wind Energy
Key Growth Drivers for Wind Energy •• Cost Costper perKwh Kwhofofwind windgeneration generationdecreased decreasedfrom fromUS$ US$0.38 0.38inin (1) Cost CostCompetitiveness Competitiveness early 80s to present US$ 0.03-0.06, at excellent wind sites early 80s to present US$ 0.03-0.06, at excellent wi
Slide 11: Table of Contents
Energy – Global Scenario – India Scenario Suzlon - Business Overview Financial Highlights Growth Strategy 11
Slide 12: Suzlon: Leaders in Wind Energy - Ranked #1 in India
Suzlon: Leaders in Wind Energy Ranked #1 in India Ranked # 6 Globally in MW installed in (2) India - Annual Installed Capacity in FY 2005 2004 497 Ranked #1 in India for last 7 consecutive 500 years, in terms of annual installations 400 Leading manufacturer of Wind Turbine Generators for last
Slide 13: Carving their niche globally
Carving their niche globally Global Annual Installed Capacity in 2004 Global Marketing HQ at Denmark with Installed MW Share (%) offices in potential high growth Vestas (Denmark) 2,783 34.1% markets such as Australia, China and Gamesa (Spain) 1,474 18.1% US Enercon (Germany) 1,288 15.8% Set-up a
Slide 14: Key Competitive Strengths
Key Competitive Strengths #1 Leveraging Best of All Worlds - Technology, Manufacturing and Market Opportunities #2 Total Wind Energy Solutions Provider, in co-operation with Associate Companies #3 Backward Integration to Control Supply Chain, Reduce Costs and Quality Control #4 Strong Home Market Pr
Slide 15: #1 Integrating Best of All Worlds
#1 Integrating Best of All Worlds Leveraging on key locales for Technology, Manufacturing and Market # 1 – R&D in Europe • Aerodynamics in Netherlands • Product Engineering in Germany # 2 - Manufacturing facilities in India $ $ (China and US being set up) to leverage on: $ • Process engineering and
Slide 16: #2 Integrated Wind Energy Solution Provider, in co-operation with Associate Companies
#2 Integrated Wind Energy Solution Provider, in co-operation with Associate Companies The Indian Context … customised based on Market Technology Infrastructure Operation and Development development at Wind Park Design Land Acquisition Maintenance & Wind Turbine wind farm and Services Manufacturing I
Slide 17: #3 Backward Integration to Control Supply Chain and Reduce Costs
#3 Backward Integration to Control Supply Chain and Reduce Costs Quality, Reliability and Service Security In-House Manufacturing of: – Rotor blades and Nacelle Covers – Tubular towers – Generators – Control Systems – Gear boxes (Facility by Winergy AG) Benefits: – Optimised Technology Developme
Slide 18: #4 Strong Home Market Presence
#4 Strong Home Market Presence Consistently Consistently Ranked Ranked ## 11 for for the the last last 77 years years (market (market share share of of over over 50% 50% asas of of Dec Dec 0505 installations) installations) Presence Presence across across 77 key key Indian Indian Windy Windy States
Slide 19: #5 Experienced Management Team
#5 Experienced Management Team Strategy & Direction Tulsi Tanti Projects, O&M and Technology Marketing & Sales Corporate Functions Supply Chain T. Spehr- Head, WTG Supply Chain • Girish Tanti – Director • B. A Parmar – Design, Germany • R. Sridhar – Head, Int. Bus Devpt. & HR Director, Corporate
Slide 20: #6 Backed by Professional Board and Pedigree Investors
#6 Backed by Professional Board and Pedigree Investors Board of Directors Pedigree Investors Tulsi Tulsi R R Tanti; Tanti; Citicorp Citicorp International International Finance Finance Chairman Chairman and and Managing Managing Director Director Corporation Corporation Girish Girish R.Tanti R.Tanti
Slide 21: Table of Contents
Energy – Global Scenario – India Scenario Business Overview Financial Highlights Growth Strategy 21
Slide 22: Strong Financial Performance
Strong Financial Performance Total Income (1) EBITDA (1) PAT (1) Rs Cr Rs Cr Rs Cr 2,500 600 552 500 2,296 461 450 1,941 500 2,000 450 400 361 350 400 1,500 300 300 250 1,000 805 200 200 146 150 144 500 100 100 50 0 0 0 FY04 FY05 9 Months FY 04 FY 05 9 M o n th s FY 04 FY 05 9 M o n th s FY 06 FY 06
Slide 23: Strong Operational Performance
Strong Operational Performance EBITDA Margins (1) PAT Margins (1) RONW (1) 30% 30% 50% 46% 43% 45% 24% 25% 23% 25% 40% 20% 35% 20% 18% 20% 18% 19% 31% 30% 15% 15% 25% 20% 10% 10% 15% 5% 10% 5% 5% 0% 0% 0% FY 04 FY 05 9 M o n th s FY 04 FY 05 9 M o n th s FY 04 FY 05 *D e c 05 FY 06 FY 06 TTM * Net W
Slide 24: Strong Financial Performance (9 Months - FY 06)
Strong Financial Performance (9 Months – FY 06) Total Income (1) EBITDA (1) PAT (1) Rs Cr Rs Cr Rs Cr 2,400 2,296 600 500 552 461 450 2,000 500 400 350 1,600 400 300 1,200 300 250 960 200 800 200 162 150 108 400 100 100 50 0 0 0 Dec. 04 Dec. 05 Dec. 04 Dec. 05 D e c. 04 D e c. 05 (1) Standalone fina
Slide 25: Table of Contents
Energy – Global Scenario – India Scenario Suzlon - Business Overview Financial Highlights Growth Strategy 25
Slide 26: Growth Strategy
Growth Strategy #1 #1 Improving ImprovingCost CostEfficiency Efficiencyof ofGenerating GeneratingPower Powerfrom fromWind Wind #2 #2 Focus Focuson onResearch Research&&Development Development #3 #3 Backward BackwardIntegration Integrationof ofManufacturing ManufacturingFacilities Facilities #4 #4 Ma
Slide 27: Q&A
Q&A 27