Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q4 FY22 Earnings Presentation
36 slides from Renew Energy Global's earnings presentation, Jun 15, 2022
Slide 1: Q4 FY 22 Earnings Review
Q4 FY 22 Earnings Review June 15, 2022 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by ReNew Energy Global, the markets in which ReNew Energy Global operates and ReNew Energy Global
Slide 3: Agenda
Agenda 01 Highlights of Recent Developments 02 FY 22 & Q4 FY 22 Highlights 03 Sustainability And ESG 04 Guidance 05 Appendix 3
Slide 4: Recent Developments
01 Recent Developments 4
Slide 5: Investment Proposition
Investment Proposition Strong electricity growth expected in India 1 India electricity demand expected to double by 2030 Expected substantial India per capita energy consumption ~20% of China/ ~6% of US Cash Flow/share Renewable energy (RE) lowest cost electricity capacity in India 2 growth In
Slide 6: Recent Developments
Recent Developments Sold 49% minority Signed ~2.5 Acquired 528 MWs Received favorable court IOC, L&T, ReNew stake in RTC project GWs of PPAs rulings for past due Green Hydrogen JV receivables • Partnered with Mitsui, a • ~1.6 GWs incremental of • Signed definitive • Favourable ruling from • IndianOi
Slide 7: Capital Recycling: Sale of Minority Stake Increases Returns
Capital Recycling: Sale of Minority Stake Increases Returns Illustrative Example of Minority Stake Sale Selling minority stakes at 9 – 10X EV/ EBITDA vs Build Cost at 7 – 8x EBITDA increases equity returns to 20 – 25% (up from 16 – 20% base case) Capital recycling at 9 – 10x EBITDA increases EBITDA/
Slide 8: Electricity Demand Growth has led to Blackouts and Rising Prices
Electricity Demand Growth has led to Blackouts and Rising Prices Record Energy and Peak Demand in FY22(1) Rise in Electricity Blackouts across India Peak April 2022 Daily Power Cuts in Various States BU Energy GW (In Hours)3 150 220 200 Energy 130 demand +6- India (avg) 180 8% from pre- 110 160 Covi
Slide 9: Driving more demand, especially from Corporate PPAs
Driving more demand, especially from Corporate PPAs Corporate PPA pipeline growing substantially - 21 GWs of Utility Auctions Expected over next few months(1) 5 GW of Development Potential By 2025 • Total portfolio of ~952 MWs: commissioned capacity of 570 MWs as on • Over 30-35 GWs of RTC auctions
Slide 10: De-Risking Supply Chain by Increasing Self Supply
De-Risking Supply Chain by Increasing Self Supply Increasing Module Capacity to 6.4 GW DC/3.3 GW AC ReNew’s Solar Manufacturing Plant Details (AC - GW) • All capacity expected to be for self supply • Increased self supply secures and derisks ReNew’s growth of core development business 2.1 • Incremen
Slide 11: Improving Green Hydrogen Opportunities with IOC in JV with ReNew, L&T
Improving Green Hydrogen Opportunities with IOC in JV with ReNew, L&T Green Hydrogen JV India’s National Hydrogen Mission India’s National Hydrogen Mission aims to have 5 million tonnes per annum (MTPA) of green hydrogen capacity by 2030, more than 80% of the current hydrogen demand in the country a
Slide 12: FY 22 & Q4 FY 22 Highlights
02 FY 22 & Q4 FY 22 Highlights 12
Slide 13: Q4 FY 22 and 12M FY 22 Overview
Q4 FY 22 and 12M FY 22 Overview Key Highlights Key metrics (INR Mn) 69,195 Total Portfolio • Total Portfolio (commissioned and committed) of 10,688 MWs,(1) an addition of ~243 MWs in installed capacity this quarter. Subsequent to the end of the quarter, the Company entered into 55,144 54,491 definit
Slide 14: $816 Mn Of Adjusted EBITDA, excluding impact from weather/FX/Rooftop, in FY 22
$816 Mn Of Adjusted EBITDA, excluding impact from weather/FX/Rooftop, in FY 22 FY 22 Adjusted FY 22 Adjustments FY 22 Million (INR) (USD) (INR) (USD) (INR) (USD) Comments Revenue from contracts with customers 59,349 782 59,349 782 Other operating income 2,694 36 2,694 36 Finance income and fair valu
Slide 15: Receivables Situation Improved
Receivables Situation Improved DSOs improve as Central Gov’t becomes a larger % of assets(1,2) 272 7.6 GWs 12.8 GWs 262 256 Others 10% Others 9% 212 Corporates 8% AP, MP, Corporates 7% AP, MP, TG, KA and TG, KA Mah 195 Central and Mah Central 35% 188 184 53% Government Government 30% 48% 132 ReNew I
Slide 16: Initiatives To Mitigate Supply Cost Inflation Has Shielded ReNew
Initiatives To Mitigate Supply Cost Inflation Has Shielded ReNew Risk Mitigation Under construction projects are expected to have equity Further optimization in Balance of System returns of 16 - 20% through measures such (RTC project equity returns is expected to be above 20%) as higher efficiency m
Slide 17: Financing/Refi and Fixed Rates Lowers Interest Rate Risk
Financing/Refi and Fixed Rates Lowers Interest Rate Risk Current term sheets at 8 - 8.5% versus current marginal average debt cost of ~8.9% FY22 interest saving activities resulted in savings of ~$7 Mn Current term sheets for lending at 8.25% - 8.5% compared to term sheets closed at 8.75% - 9.00% ar
Slide 18: Sustainability And ESG
SREKRCRTATE \ EAE ETE To) ARR AS BERS eS
Slide 19: ReNew Is Leading The Energy Transition In India
ReNew Is Leading The Energy Transition In India And Is Committed To Global Sustainable Development Goals Our ESG targets Progress as of FY 22 Emissions To be validated as carbon neutral (scope 1 & 2) Verified as ‘carbon neutral’ for our operations across more than 100 sites and facilities for FY21 D
Slide 20: Helping India and the world take the transition to the next level
Helping India and the world take the transition to the next level • Appointed Co-Chair of the Electricity Governor’s Group and Member of the Stewardship Board on Shaping the Future of Energy to define the energy industry’s agenda and accelerate WEF’s impact • Appointed Co-chair of Alliance of CEO Cl
Slide 21: Impacting Communities With Sustainability Initiatives
Impacting Communities With Sustainability Initiatives Community-Based Water Management CSR Report 2021-22 Gift Warmth https://renewpower.in/corporate-social-responsibility/ (Benchmark CSR case study recognized by Ministry of Corporate Affairs) Women for Climate – Entrepreneurship and Skilling Lighti
Slide 22: Guidance
02 Guidance 22
Slide 23: Guidance
Guidance Net Debt(1) & Leverage(2) At Operating Capacity Of 7.6 GWs Adjusted EBITDA/share And 12.8 GWs 7000 6 INR 195 - 207 INR 429 – 451 Bn 6000 INR 155 - 160 5000 5.5 INR 310 - 327 Bn INR 133 - 141 INR 128 4000 5 3000 5.4x 2000 5.1x 4.5 1000 0 4 7.6 GWs 12.8 GWs FY22 Actual Commissioned Run Rate F
Slide 24: Appendix
05 Appendix 24
Slide 25: $189 Mn Adjusted EBITDA, excluding impact of weather, in Q4 FY 22
$189 Mn Adjusted EBITDA, excluding impact of weather, in Q4 FY 22 Q4 FY 22 Adjusted Q4 FY 22 Adjustments Q4 FY 22 Million (INR) (USD) (INR) (USD) (INR) (USD) Comments Revenue from contracts with customers 14,946 197 14,946 197 Other operating income 466 6 466 6 Finance income and fair value change i
Slide 26: Counterparty Overview And Asset Breakdown
Counterparty Overview And Asset Breakdown Total Portfolio Total 12.8 GW Technology Solar 6.8 GW Hydro 0.1 GW Wind 5.9 GW Project Stage Commissioned Committed Commissioned Commissioned Committed 3.7 GW 3.1 GW 0.1 GW 3.8 GW 2.1 GW PPA Counterparty Centre State 3rd Party Centre State 3rd Party 3.8 GW 2
Slide 27: Operating Performance And Seasonality
Operating Performance And Seasonality As of and for the year ended 31 March 2019 2020 2021(6) 2022 Wind Solar(4) Wind Solar(4) Wind Solar(4) Wind Solar Commissioned capacity (GW) 2.95 1.61 3.24 2.18 3.59 2.01 3.78 3.69 Weighted average operational 2.80 1.30 3.11 1.88 3.31 2.16 3.66 2.78 capacity(1)
Slide 28: Track Record Of Efficient Capital Raise From Diverse Sources Of Funding
Track Record Of Efficient Capital Raise From Diverse Sources Of Funding Outstanding Funding (31st March 2022)(1) Raised US$3.5bn+ In Bond Offerings Through 8 USD Bond Offerings At Competitive Rates Reduction in cost of Working Capital debt Loan 6.67% INR Bonds 1.72% 0.7% 6.45% 4.3% 6.00% Equity (2)
Slide 29: Debt Profile
Debt Profile Corporate debt By Debt Type 11% By Interest Rate Variable Rate 24% Project debt 89% Fixed Rate 76% 0 - 2 years By Currency(1) By Maturity(1) 15% INR 32% 2 - 4 years US Dollars 15% 68% (fully hedged) > 4 years 70% Note: Debt doesn’t include unsecured CCDs Interest cost for the outstandin
Slide 30: Project Level Details
Project Level Details (as of June 14, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,602 MW) 23.1MW: APPC Rate + escalation linked to State APPC tariff; 2.1MW: GUVNL (23.1), 23.1 MW: 25 years; Jasdan 25
Slide 31: Project Level Details
Project Level Details (as of June 14, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,602 MW) Ostro-Lahori 92.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 Ostro-Amba 66.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 O
Slide 32: Project Level Details
Project Level Details (as of June 14, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,602 MW) Ostro - Kutch (SECI 1) 250.0 Gujarat Oct-18 3.46 PTC 25 SECI II 230.1 Gujarat Oct-19 2.64 SECI 25 GUVNL 35.0
Slide 33: Project Level Details
Project Level Details (as of June 14, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) 5.98 for year 1 with 3% escalation till year 10, 10th year tariff Cumbum 21.0 Andhra Pradesh Mar-16 APSPDCL
Slide 34: Project Level Details
Project Level Details (as of June 14, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) SECI Raj 110.0 Rajasthan Feb-21 2.49 SECI 25 GUVNL 105.0 Gujarat Apr-21 2.68 GUVNL 25 SECI III 300.0 Rajasth
Slide 35: Project Level Details
Project Level Details (as of June 14,2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Hydro Power Project (99 MW) Acquisition - L&T Hydro 99.0 Uttarakhand Dec-20 Third Party Project Type Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Te
Slide 36: Project Level Details
Project Level Details (as of June 14,2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (298 MW) Otha(7) 11.0 Gujarat Sep-22 3.43 Grasim 25 Other Corporate Projects(7) 262.0 Multiple Q3 FY24(10) 3.25 – 3.95 3rd Party