Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — ReNew Power — SPAC Merger (February 2021)
43 slides from Renew Energy Global's SPAC merger presentation, February 2021
Slide 1: India's Premier Renewable Energy Company
India’s Premier Renewable Energy Company
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTION, IN WH OLE OR IN PART, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR IN OR INTO OR FROM THE UNITED STATES OF AMERICA (EXCEPT TO QUALIFIED INSTITUTIONAL INVESTORS AS DEFI
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Confidential Information The inf ormation contained in this presentation is confidential and being provided to you solely for the purpose of assisting you in familiarizing yourself with RMG II and ReNew in connection with their proposed business combination. This presentation is
Slide 4: Largest Pure-Play Renewable Company in India and One of the Largest in the World
Company Vision To build the best renewable energy company in the world Largest Pure-Play Renewable Company in India and One of the Largest in the World Compounded annual EBITDA growth rate projected to exceed 30% through 2025 (1) S&P Global Platts S&P Global Platts Global Energy Reuters award 2020:
Slide 5: About Presenters
About Presenters • Over ~30 years of experience, COO -Suzlon; Founder & CEO - Aditya Birla Retail; Group CFO - Aditya Birla Group; previously in investment banking with Citi and ING Barings Sumant Sinha • Co-chairman of the Electricity Governors Forum at the World Economic Forum (WEF); Member of the
Slide 6: Overview of RMG II Management Team
Overview of RMG II Management Team Highly Experienced RMG II Management Team RMG Acquisition Corp. II Overview Jim Carpenter • RMG Acquisition Corp. II (“RMG II”) is NASDAQ listed SPAC which Chairman completed its $345MM IPO on December 14, 2020 • Founder and CEO of Riverside Management Group • . Fo
Slide 7: ReNew: India's Largest Renewable Energy Company
ReNew: India’s Largest Renewable Energy Company Large Scale Large Contracted Capacity Balanced Asset Mix 5.4GW(2) #1 (2) (2) Operating Capacity Renewable Energy Operational, Committed(3) Solar, Wind, Company in India(1) 5.4GW, 4.5GW, 4.7GW, US$681MM 46% 5.2GW, 54% 48% Revenue FY2020 52% Disciplined
Slide 8: Transaction Overview
Transaction Overview Business Overview and Summary of Proposed Transaction • Established in 2011, ReNew Power is the largest utility-scale, pure-play renewable company in India and one of the largest global clean energy companies – Current operating and committed capacity of 9.9GW (5.4GW operating /
Slide 9: Robust Business Model Underpinned by Differentiated Strategy and Superior Execution Capabilities
Robust Business Model Underpinned by Differentiated Strategy and Superior Execution Capabilities Strong and Intelligent energy stable balance solutions and services sheet with (storage, round the access to clock, energy diverse India’s largest management) sources of renewable energy funding provider
Slide 10: Key Highlights Of ReNew
Key Highlights Of ReNew 1 Massive Addressable Renewable Market Opportunity with Enormous Growth Potential 2 One of the Largest Clean Energy Companies Globally, with Leadership Position in India 3 Stable, Contracted and Diversified Portfolio of Assets 4 End-to-End Value Chain Capabilities with Expert
Slide 11: Massive Anticipated Clean Energy Opportunity in One of the Fastest Growing Markets
1 Massive Anticipated Clean Energy Opportunity in One of the Fastest Growing Markets One of the Largest Renewable Markets Globally with Strong Underlying Demand –India’s Electricity Generation Renewables Penetration Poised to Increase Even Under Expected to Increase ~2x in the Next Decade(1) High De
Slide 12: Renewable Energy is the Future of Electricity Supply in India
1 Renewable Energy is the Future of Electricity Supply in India with Roughly $300bn Investments Expected in Next Decade Renewables Expected to Dominate Power Sector Investments Over Next Decade(1) Key Drivers of India’s Renewable Energy Growth $Bn (2019, real) Renewables 282 1 Structural policy refo
Slide 13: India Requires 300+ GW of Additional Renewable Capacity by 2030
1 India Requires 300+ GW of Additional Renewable Capacity to Meet Clean Energy Targets and Incremental Demand by 2030 Roadmap to RE Target by 2030 (GW) 275 450 In order to meet India’s RE target of 175GW by 2022, 43GW needs to be awarded in next few quarters 43 175 41 132 90 Commissioned Pipeline To
Slide 14: #1 Utility-Scale, Pure-Play Renewable Power Generation Player in India
2 #1 Utility-Scale, Pure-Play Renewable Power Generation Player in India and One of the Largest Globally Largest Utility-scale, Pure-Play Renewable Energy Provider in India One of The Largest Clean Energy Utilities Globally Capacity in MW (Operational + Committed) Net Capacity in MW (Operational + C
Slide 15: Consistent Track Record of Market Share Growth Over Long Term
2 Consistent Track Record of Market Share Growth Over Long Term ReNew has Successfully Grown its Capacity 2.7x Since FY2017 vs Industry Growth of 1.5x Mar-12 2016 Mar-18 2019-2020 Commissioned 1st Started in-house Solar Acquired Ostro Energy Started self O&M for project with 25.2 MW, EPC and O&M wit
Slide 16: ReNew's Scale Provides Competitive Edge in Fast Evolving Market
2 ReNew’s Scale Provides Competitive Edge in Fast Evolving Market Ability to negotiate favourable terms from OEMs and other suppliers Technical expertise, track record and scale to win complex bids Managing cost of capital which enhances cost competitiveness Pan-India presence to identify potential
Slide 17: Highly Diversified Portfolio of Assets
3 Highly Diversified Portfolio of Assets Diversity Across Vendors Reduces Dependence ReNew’s Regionally Diversified Utility Portfolio(1)(2) and Price Risk(3) Solar Hefei JA Solar 16% Others Longi 41% 15% 3,058 MW 100 MW ZNShine 578 MW 10% 1,346 MW Hareon Jinko 9% 9% 736 MW Wind 560 MW Others 15% 777
Slide 18: Stable and Long-term Contracted Cash Flows with High Quality Counterparties
3 Stable and Long-term Contracted Cash Flows with High Quality Counterparties Long Term PPAs Provide Stable Cash Flows High Quality Counterparty Mix (2) Contract Duration(1) Offtaker Profile 8-20 Years 7% Others 19% Madhya Pradesh 6% Central Agency 49% Andhra Pradesh 8% Karnataka 8%% 20-25 Years Mah
Slide 19: Fully Integrated Platform with End-to-End Project Execution Capabilities
4 Fully Integrated Platform with End-to-End Project Execution Capabilities • Wind farms selection done jointly by Wind Resource and PD teams • Access to multiple data sources such as ReNew’s own 108 met-masts (1) spread across 8 states, Site Selection performance data from 5.3GW operating assets, OE
Slide 20: Pioneer in Providing Intelligent Energy Solutions and Value-Enhancing Capabilities
4 Pioneer in Providing Intelligent Energy Solutions and Value-Enhancing Capabilities in India ReNew’s INTELLIGENT ENERGY SOLUTIONS FLEXIBLE ON-DEMAND STORAGE SERVICES B2B SOLUTIONS ENERGY MANAGEMENT ENERGY SERVICES • Capability to provide fixed power + • Built the largest pipeline of utility • > 150
Slide 21: Strong Track Record of Disciplined Bidding Focused on Profitable Growth
5 Strong Track Record of Disciplined Bidding Focused on Profitable Growth Strict Underwriting has led to Disciplined Bidding Over the Years Resulting in Compelling Risk Adjusted Returns (1) Capacity Bid by ReNew Since FY18 Selective bidding highlights disciplined approach and 68 bids (52.8 GW) stron
Slide 22: Strong Sustainability Practices Under Emerging Market Footprint
6 Strong Sustainability Practices Under Emerging Market Footprint Flagship Programs An initiative focussing on last mile electrification of schools with less than 3 hours of electricity through solar energy, thereby changing the education delivery and creating a force of young green Drive policy adv
Slide 23: Led by a Visionary Founder and a Highly Experienced Management Team
7 Led by a Visionary Founder and a Highly Experienced Management Team Sum ant Sinha D Muthukum aran Balram Mehta Ajay Bhardw aj Sanjay Varghese Founder, Chairman and Chief Financial Officer Chief Operating Officer President, New Business Executive Vice President, Managing Director Solar 10 31 2 29 1
Slide 24: Leader in Indian Renewables with Strong, Committed Growth Pipeline
7 Leader in Indian Renewables with Strong, Committed Growth Pipeline Significant Growth Runway from India’s Increasing Renewable Energy Share Visible Additional capacity grow th from grow th from future pipeline committed pipeline Track record of 8.6 GW 18.5 GW capacity addition with disciplined bid
Slide 25: Financial Overview
Financial Overview
Slide 26: Track Record of Efficient Capital Raising from Diverse Sources of Funding
Track Record of Efficient Capital Raising from Diverse Sources of Funding Access to Diverse and Efficient Capital Raising Re-validates ReNew’s Business and Growth Story Diversified Funding Outstanding as of 31st March 2020 (US$MM)(2) Access to working capital loan, buyer/ suppliers credit Working Ca
Slide 27: Strong Financial Profile
Strong Financial Profile Installed Capacity Revenue(2) (In GW) (In $MM) 18.5 1,960 15.2 1,655 1,327 662 11.8 8.6 354 5.3 127 1.9 952 8.0 620 681 699 4.6 5.4 5.7 1,200 1,301 1,298 9.9 9.9 9.9 952 8.0 681 699 4.6 5.4 5.7 620 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Committ
Slide 28: Transaction Overview
Transaction Overview Transaction Structure Anticipated Pro Forma Capitalization and Ownership • RMG II and ReNew anticipate filing an F-4 / proxy statement in March 2021 $MM, except per share values 8.1% 2.1% • The transaction would thereafter be expected to close in Q2 2021 Share Price $10.00 19.6%
Slide 29: Public Comparables
Public Comparables Integrated renewable developer and operator Pan-Indian market footprint Similar regional tailwinds and market opportunities as ReNew Indian Peer Long term contracts with predominantly government owned DISCOMs’ Solar-only technology focus Low liquidity and limited float
Slide 30: Benchmarking ReNew's Financial Profile vs. Public Comparables
Benchmarking ReNew’s Financial Profile vs. Public Comparables ReNew Indian Peer European Peers North American Peers Revenue Growth (2020-2023 CAGR)(1)(2) 52.0% 24.9% 26.5% 21.2% 22.4% 15.0% 8.7% 6.6% 4.8% (3) 4.6% EBITDA Growth (2020-2023 CAGR)(1)(2) 41.8% 26.2% 27.1% 22.3% 13.0% 11.2% 11.6% 12.3% 2
Slide 31: Peer Valuation Benchmarking
Peer Valuation Benchmarking Equity Value for Comparable Indian • Robust demand in public markets for clean energy companies, particularly those with Platforms exposure to large addressable markets and enormous growth opportunities Capacity Equity Value Company (MW) (US$ mm) • While multiples have tr
Slide 32: Compelling Valuation for Investors
Compelling Valuation for Investors Current NTM 1 Year Average NTM Post-Money Equity Value ($MM)(1) EV/EBITDA Multiples EV/EBITDA Multiples Comparable 15.6x 14.5x $9,206 Median NTM $8,281 $811MM $811MM EBITDA(1) Implied Future Enterprise $12.8Bn $11.6Bn Value $4,370 Net Debt $3.5Bn $3.5Bn Implied Equ
Slide 33: RECAP: ReNew is the Leading Renewable Energy Player in a Rapidly Growing Market
RECAP: ReNew is the Leading Renewable Energy Player in a Rapidly Growing Market Renewables are the mainstay of electricity growth in India – most economical and fastest growing ReNew with 9.9 GW(2) committed, diversified, and high quality portfolio is the largest renewable energy company(1) in t
Slide 34: Risk Factors
Risk Factors Risks Relating to the Business and Industry 1. The COVID-19 pandemic’s adverse impacts on our business, financial position, results of operations, and prospects could be significa nt. 2. There are a limited number of purchasers of utility scale quantities of electricity, w hich exposes
Slide 35: Risk Factors (cont'd)
Risk Factors (cont’d) 24. We face competition from conventional and other renew able energy producers. 25. We are required to comply w ith anti-corruption law s and regulations of the United States government, United Kingdom and India. The implementation of compliance procedures and related controls
Slide 36: Appendix: India Renewable Sector Overview
Appendix: India Renewable Sector Overview
Slide 37: Proposed Amendments in Indian Regulatory Framework
Proposed Amendments in Indian Regulatory Framework Aimed at Reforming Distribution Sector and Promoting Adoption of Renewables Amendments to Electricity Act and National Tariff Policy Proposed to Promote Competition and Efficiency National Tariff Proposed Policy 2016 Draft Electricity (Amendment) Bi
Slide 38: Evolution of Indian Renewable Energy Sector
Evolution of Indian Renewable Energy Sector A History of Renewable Policy: Key Drivers and Inhibitors 0% 1% 5% 9% 19% 19% RE Capacity 36% 36% 33% 31% 25% 34% 64% 63% 63% 61% 56% 46% 12.2 GW 20.6 GW 29.4 GW 37.1 GW 51.4 GW 75.9 GW Market-based mechanism for GBI and Generation based trading renew able
Slide 39: Institutions at the National and State Levels Share Responsibility for Renewables
Institutions at the National and State Levels Share the Power and Responsibility to Develop the Renewable Power Sector Institutions Responsible for Renewables in India and their State Counterparts Ministry of New and Renewable Ministry of Power State Renewable Energy Development Agencies Policy and
Slide 40: Emerging Technologies – Offshore Wind and Energy Storage Expected to Take-off Soon
Emerging Technologies – Offshore Wind and Energy Storage Expected to Take-off Soon • Demand for energy storage has increased in the past few years with over 4.7 GW of tenders since 2017 • In January 2020, SECI successfully closed a 1.2 GW renewable plus storage tender with Greenko and ReNew Power wi
Slide 41: Counterparty Overview and Asset Breakdown
Counterparty Overview and Asset Breakdown Total Committed Portfolio Total 9.9 GW Technology Solar 4.7 GW Wind 5.2 GW Operational Under-Construction Operational Under-Construction Project Stage 1.9 GW 2.8 GW 3.5 GW 1.7 GW PPA Centre State Centre State Counterparty 2.5 GW 1.9 GW 2.4 GW 2.6 GW C&I 0.3
Slide 42: Drivers of ESG at ReNew
Drivers of ESG at ReNew Initiatives ESG Impact Category Status Efficient use of energy w ithin operations No Plastic Policy Well defined ESG Policy Head Office rated LEED Platinum Efficient use of w ater w ithin operations Planning site clim ate vulnerability assessment Strong innovation c
Slide 43: Structural Overview
Structural Overview Majority Shareholders Existing Offshore Structure India Minority ReNew Power Private Shareholders Limited (“RPPL”) SPAC Sponsor & Majority New Investors Shareholders PIPE Investors Proposed NewCo Structure Offshore India Minority RPPL Shareholders (1) 1. Represents ~9.6% ownershi