Azure Power Global Limited · OTC:AZREF

Azure Power Global — Q3 FY2018 Earnings Presentation

23 slides from Azure Power Global's earnings presentation, Feb 9, 2018

  1. Slide 1: Third Quarter 2018 Ended December 31, 2017 Earnings Presentation

    India’s first private grid connected MW solar plant India’s first distributed rooftop solar project over one megawatt Pan India portfolio of solar assets in 20+ States Issued India’s first solar Green Bond Third Quarter 2018 Ended December 31, 2017 Earnings Presentation February 9, 2018 1 | Copyrigh

  2. 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

  3. Slide 3: Agenda

    Agenda Fiscal Third Quarter 2018 Highlights Industry Update Fiscal Third Quarter 2018 Results FY 2018 & FY 2019 Guidance 3 | Copyright © 2018 Azure Power | www.azurepower.com

  4. Slide 4: 4 | Copyright © 2018 Azure Power | www.azurepower.com

    4 | Copyright © 2018 Azure Power | www.azurepower.com

  5. Slide 5: Q3 FY'18 Highlights: Significant Wins, Enhanced Portfolio Quality

    Q3 FY’18 Highlights: Significant Wins, Enhanced Portfolio Quality Significant New Contract Wins Improve Offtaker Profile Substantial offtake to highest rated offtakers5 • Portfolio of 1,580 MW(1), 905MWs operational(2), 675 MWs committed & Private & Others under construction AAA B to BBB- • Portfoli

  6. Slide 6: 795 MW Won Year to Date in FY'18, 72% Increase over Prior Year

    A 795 MW Won Year to Date in FY’ 18, 72% Increase over Prior Year 260MW | Gujarat 2 50MW | SECI Rooftop 1 Offtaker and Credit Rating: GUVNL (AA-(1)) Offtaker and Credit Rating: SECI (AA+(1)) PPA Duration: 25 Years PPA Duration: 25 Years Commissioning: Q1 2019 Tariff: INR 4.65(3) (~US$ 0.07(2) )/kWh

  7. Slide 7: Started 2018 with Commissioning of First Project In Telangana

    Started 2018 with Commissioning of First Project In Telangana 100MWs Telangana 1 Project was auctioned by NTPC, which has a AAA debt rating The project created an estimated ~400 jobs Azure Power will supply power to NTPC for the next 25 years at a tariff of INR 4.67 (~US$0.07)(1) per kWh 10 projects

  8. Slide 8: Solar Tariffs and Regulatory Update

    Solar Tariffs and Regulatory Update Recent Solar Tariffs In India Compare Favorably to Regulatory Update Other Global Markets MNRE Updates Plan: New 67GWs of Solar by 2020(5) Recent Indian solar PPA tariffs are attractive relative to other US$3.7 bn(3) in Financial Assistance to DISCOMs to Boost cou

  9. Slide 9: Effective Strategy & Strong Execution Drives 105% YoY Increase in kWh Generated

    Effective Strategy & Strong Execution Drives 105% YoY Increase in kWh Generated 805MW Operating 1,580 MW Operating & Committed US$27.3mn Q3 Revenue 57% increase(1) 48% increase(1) 83% increase(1) 855.4mn kWh Generation US$0.83mn Project Cost/MW US$219.5mn Portfolio Revenue Run Rate(2) 105% increase(

  10. Slide 10: Adjusted EBITDA Margin Expansion Driven by Cost Management

    Adjusted EBITDA(1) Margin Expansion Driven by Cost Management 76% growth in Adjusted EBITDA(1) in Q3 FY’18 vs Q3 FY’17 25,000 12,393 (1,179) (2,902)(2) 19,223 21,000 In US$ Thousands 17,000 13,000 10,911 9,000 5,000 1,000 Q3 FY'17 Adjusted Additional Revenue Additional Cost of Additional General & Q

  11. Slide 11: A Growing Balance Sheet with a Strong Liquidity Position

    A Growing Balance Sheet with a Strong Liquidity Position March 31, 2017 December 31, 2017 (in thousands) (in thousands) INR INR US$ Cash, Cash Equivalents and Current 8,757,467 11,740,739 183,937 Investments (excludes restricted cash) Property, Plant & Equipment, Net 40,942,608 53,305,939 835,124 To

  12. Slide 12: US$446 Million of Liquidity as on December 31, 2017

    US$446 Million of Liquidity as on December 31, 2017 Unused Debt Sanctions Debt Capacity Working Capital $57 Facilities CDPQ ROFO Right of first offer to provide minority $141 equity financing to fund the development or acquisition of new power projects of our subsidiaries $248 The Company is well ca

  13. Slide 13: History of Strong Growth and Cost Reductions; 735% Revenue Growth since 2015

    History of Strong Growth and Cost Reductions; 735% Revenue Growth since 2015 735% Growth in Revenues 158% Growth in Portfolio Run Rate (FY’15 to FY’19) (FY’15 through 9 Months FY’18) 160 250 140 120 200 100 5-yr CAGR: 70% Million US$ Million US$ 150 80 60 100 40 20 50 0 0 FY18(1) FY19(1) FY15 FY16 F

  14. Slide 14: Updating FY'18 Guidance and Providing FY'19 Guidance

    Updating FY’18 Guidance and Providing FY’19 Guidance FY 2018 FY 2019 US$ 118-125 million of US$ 143 - 151 million of Revenue for FY18 Revenue for FY’19 905-1,000 MWs Operating by 1,300 – 1,400 MWs Operating March 31, 2018 by March 31, 2019 __________________________ Exchange rate- INR63.83 to US$1 (

  15. Slide 15: Appendix

    Appendix 15 | Copyright © 2018 Azure Power | www.azurepower.com

  16. Slide 16: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. The Company presents Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance

  17. Slide 17: Reconciliation of Non GAAP Measures to Comparable GAAP measures

    Reconciliation of Non GAAP Measures to Comparable GAAP measures Three Months Ended December 31, Nine Months Ended December 31, (in thousands) (in thousands) 2016 2017 2017 2016 2017 2017 INR INR US$ INR INR US$ Net loss (514,297) (136,162) (2,132) (884,841) (1,169,834) (18,327) Income tax expense/(b

  18. Slide 18: Project List- Operational (Utility)

    Project List- Operational (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (INR/kWh) Date(1) Years Punjab 1 Q4 2009 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Punjab 2.1 Q3 2014 15 7.67 Punjab State Power Corporation Limited 25 Punjab 2.2 Q4 2014 15 7.9

  19. Slide 19: Project List- Operational and Under Construction (Utility)

    Project List- Operational and Under Construction (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (INR/kWh) Date(1) Years Operational Punjab 4.1 Q4 2016 50 5.62 Punjab State Power Corporation Limited 25 Punjab 4.2 Q4 2016 50 5.63 Punjab State Power Corpo

  20. Slide 20: Project List- Rooftops

    Project List- Rooftops Commercial Duration Capacity Project Names Operation Tariff(2) Off taker of PPA in (MW) Date(1) Years Operational Total Operational Capacity 2013 – Q3 2017 28 7.45 Various 25 Under Construction Indian Railways Rooftop 1 Q2 2018 26 6.19 Railway Energy Management Company Limited

  21. Slide 21: Project Debt Schedule

    Project Debt Schedule Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(2) Name of Project INR US$ (5) Punjab 1 174,000 2,726 Fixed INR 2022 Punjab 2 1,699,000 26,618 Fixed INR 2022 Gujarat 1 927,560 14,532 Fixed INR 2022 Rajasthan 1 733,124 11,486 Fixed US$ 2028 Ra

  22. Slide 22: 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 year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and the rem

  23. Slide 23: Affordable Solar Power for Generations

    Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 23 | Copyright © 2018 Azure Power | www.azurepower.com

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