Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — JP Morgan Global EM Conference 2021
50 slides from Adani Energy Solutions's conference presentation, Mar 1, 2021
Slide 1: Exchange intimation letter for investors' conference
1st March, 2021 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange plaza, Dalal Street, Bandra-Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai – 400051. Scrip Code: 539254 Scrip Code: ADANITRANS Dear Sir, Sub: Intimation for participation in the Investors’ Conference / Webin
Slide 2: Adani Transmission Limited Debt Presentation
Adani Transmission Limited Debt Presentation JP Morgan EM Conference - March 2021
Slide 3: Contents
CONTENTS 04-07 Adani Group 04 09-12 Company Profile 09 14-18 ATL – Credit Story 14 20-25 ESG 20 27-28 Global Benchmarking 27 Investment Case and 30-31 30 Focus Area 33 Regulatory Landscape 33 35-47 Annexure 35
Slide 4: Adani Group
adani Transmission
Slide 5: Adani: A world class infrastructure & utility portfolio
2020 Adani: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.5% 100% 75% 55% Marked shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL – Gas distribution network to serve key 100%
Slide 6: Adani: Decades long track record of industry best growth rates across sectors
2020 Adani: Decades long track record of industry best growth rates across sectors Transmission Network (ckm) Port Cargo Throughput (MT) Renewable Capacity (GW) CGD8 (GAs9 covered) 45% 21% 161% 12% 1.5x 3x 30% 2.5x 6x 7% 5% 25% Industry ATL Industry APSEZ Industry Adani AGEL Industry AGL 2016 320,00
Slide 7: Adani: Repeatable, robust & proven transformative model of investment
2020 Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital Activity intelligenc
Slide 8: ATL: A platform well-positioned to leverage growth opportunities in T&D business
2020 ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Transmission Network of Transmission - Present in 10 states Development with 22 transmission lines Transmission (FY20): 15,487 ckt km1; 52% of EBITDA - Central
Slide 9: ATL – Profile
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ATL – Profile 14
Slide 10: ATL: Manifesting Adani's Infrastructure Excellence in T&D business
2020 ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution Strength and Pan Pan-India network & only private AEML - One of the best-run 3 million+ India Presence sector co. to operate 500 KV 93-year old integrated utility Retail Electricity Households HVDC in S-E Asia catering
Slide 11: ATL at a Glance
2020 ATL at a Glance Contracted Assets ROA Assets 25.1% 100% 100% 74.9% 100%1 Transmission HVDC Consumer-facing Assets Transmission line Integrated Utility TBCB(2) Assets 4 Operating HVDC Line in AEML catering to Transmission Assets Mumbai 3 mn+ Connections Concession Life of Transmission 13 Operati
Slide 12: Contracted Assets at a Glance
2020 Contracted Assets at a Glance Contracted Assets Key Characteristics TBCB Fixed 35 yrs + 30 yrs of (Section 63) Tariff Asset Life remaining life of asset Operating Asset Base Op. EBITDA Assets (Rs. Bn) FY20 (Rs. Bn) Counterparty Network Pool 13 68 8.0 Function of line Under-construction Asset Ba
Slide 13: ROA assets at a Glance
2020 ROA assets at a Glance 3 Consumer-facing Integrated Utility (AEML) 1 ROA Transmission Assets Key Characteristics ROA Transmission Assets Consumer 3.04 million Counterparty Consumers base Return on Assets (ROA -Section 62) Type of Regulated Asset Life Perpetual Asset Asset (Sec. 62) business Net
Slide 14: Future Outlook ATL Credit Story
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook ATL Credit Story 14
Slide 15: ATL: Key Highlights and Objectives of Capital Management Program
ATL: Key Highlights and Objectives of Capital Management Program Development De-risking Capital Conservation • Significantly reduced green-field risk • Refinancing risk significantly minimized (mature asset operator) with debt maturity (>5 year) shifting from 12% in FY16 to 87% in H1FY21 De-risking
Slide 16: Case Study: Development, O&M Efficiencies and Capital Management
Case Study: Development, O&M Efficiencies and Capital Management to create immense shareholder value Fully funded Value Creation by Capital Management releasing Equity for Growth Case study USPP: Future of ATL Capital Management Program Capital Phase Development Operations Enabling Assets to Ensure
Slide 17: AEML (Integrated Utility): Significant De-risking through Capital Management
AEML (Integrated Utility): Significant De-risking through Capital Management Capital De-risking of Asset Underlying Value Creation AEML US$ 1 bn bond issue in Jan-20 QIA’s acquisition of 25.1% stake in AEML for Rs. 32 bn investment Key Attributes Key Attributes Debt Diversification Capex Reserve Sys
Slide 18: ATL's Capital Management Program brings diversity and elongated maturity to debt profile
ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile Refinancing risk minimised1 As of As of 31st Mar 16 30th Sep 20 12% 12% < 1 Y - 19% < 1 Y - 2% Consolidated Rs. 85 bn Rs. 166 bn 1 to 5 Y - 69% 1 to 5 Y - 11% Net Debt > 5 Y - 12% > 5 Y - 87% 89% Cost of
Slide 19: ATL: Debt Evolution and Key Ratios – H1 FY21
ATL: Debt Evolution and Key Ratios – H1 FY21 Cost of Debt: reduced by 38 bps vs. H1 FY20 Net Debt(1) Net Debt Evolution Key Ratios (Rs. Crs) 1322 595 4.7 2,049 4.3 4.3 1451 443 4,008 1,959 3.3 2.6 2.3 2.1 2.1 16,617 16,930 1.6 1.6 1.3 1.3 16,930 16,617 FY18 FY19 FY20 1H FY21 Net Debt to EBITDA Sep'1
Slide 20: ESG – Embedded in to actions
Adani Transmission Limited Debt Presentation | February 22020 020 Transmission ESG – Embedded in to actions 08
Slide 21: ATL: ESG Quarterly Performance and Initiatives
2020 ATL: ESG Quarterly Performance and Initiatives ESG Performance (Q3 FY21)1 ESG Initiatives during the year • Three substations namely Mundra, Mahendargarh, Koradi achieved ‘Single Use Plastic Free’ Certification from CII. 71.70 % 47.67 % Auxiliary Power Scope 1 Emission • ATL became signatory to
Slide 22: ATL: Integrated ESG framework for enhanced value creation
2020 ATL: Integrated ESG framework for enhanced value creation Technological advancement for minimal downtime during maintenance better availability increased EBITDA TARGET BY SEP 2021 Renewable Power Procurement at below APPC tariff reduction for 12 mn Mumbai consumers 12x growth in renewable power
Slide 23: ATL: Key ESG Metrics and Initiatives
2020 ATL: Key ESG Metrics and Initiatives CO2 emissions Water Waste Land use (AEML - Dahanu) Environment Scope 1 (TCO2e): Fresh Water (KL): 18,16,997 ~40 KL Waste generated of used ~148 hectares of green belt 31,87,008 oil Water recycled (KL): 2,04,494 Planted 2 Cr mangroves Scope 2 (TCO2e): 24,509
Slide 24: ESG: Environment awareness and Initiatives
2020 ESG: Environment awareness and Initiatives ATL recognizes that below environment related factors matter to our business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Management Waste Management Technology Driven : Water – Ra
Slide 25: AEML: Initiatives towards reduction of carbon footprint
2020 AEML: Initiatives towards reduction of carbon footprint Renewable Power Climate Awareness Targeted 30% of consumption from Renewable sources Environmentally compliant generation at ADTPS Committed to increasing share of renewable power procurement from current 3% to 30% by 2023 and 50% by 2025
Slide 26: ESG: Governance – Journey so far and future glide path
2020 ESG: Governance – Journey so far and future glide path We have charted a glide path to internalise global best practices of governance by September 2021 Journey so Far Target by SEP 2021 Structure for 8 SPVs including AEML, with no cross securities nor cross guarantees All transactions between
Slide 27: Global Benchmarking
Adani Transmission Limited Debt Presentation | February 22020 020 Transmission Global Benchmarking 08
Slide 28: Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers
2020 Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers ATL and Adani Utility portfolio fares in line or better on various metrics with global peers Utility Consumers (mn) EBITDA margin % (LTM 12 months) EV/EBITDA (TEV/NTM EBITDA) 18.5 8.5# 53% 7.8 14.4 44% 42% 43% 5.6 12.05 3.8 3
Slide 29: Global Benchmarking: Regulatory Framework
2020 Global Benchmarking: Regulatory Framework Regulatory return (ROA) framework for transmission players across geographies Key Highlights 14.0% Equity portion 12.0% doesn’t depreciate ATL’s rate of return will WACC/Rate of return 10.50% 10.0% normalize over the period as 7.80% 7.60% 8.00%# our ass
Slide 30: Investment case and Key Focus Area FY21
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Investment case and Key Focus Area FY21 14
Slide 31: ATL: Compelling Investment Case
ATL: Compelling Investment Case Stable & • Predictable cash flow with contracted and regulated business predictable cash- • Long term concession life (~35 years + 30 years of remaining asset life) flows • ~52% sovereign-rated counterparties as of FY20 World-class • Robust operational metrics - line
Slide 32: ATL: Key Focus Areas FY21 and Beyond
ATL: Key Focus Areas FY21 and Beyond Liquidity Management Growth • Focus on maintaining adequate liquidity cover to swiftly mitigate • ATL well placed to capture future growth through multiple current uncertainties and any unpredictable scenario avenues: • Fully covered in-terms of debt servicing fo
Slide 33: Regulatory Landscape
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Regulatory Landscape 08
Slide 34: ATL: Regulatory Framework
ATL: Regulatory Framework EA 2003 ROA AEML TBCB Growth Section 62 (ROA) Tariff Method - Multi Year (5 yr) Tariff Section 63 (TBCB) Tariff Method – License Period Basis Services O&M Power Procurement All other Costs Expenses Costs costs • Annual charge for a 25-year period is set through the bidding
Slide 35: Annexure: Credit Portfolio, Asset Portfolio and Financial Highlights
Adani Transmission Limited Debt Presentation | February 22020 020 Transmission Annexure: Credit Portfolio, Asset Portfolio and Financial Highlights 22
Slide 36: ATL: Emulating Group's Core Infra Philosophy at every phase
2020 ATL: Emulating Group’s Core Infra Philosophy at every phase Development Operations Post Operations Phase Origination Construction O&M and Technology Consumer Engagement Capital Mgmt Return based disciplined In-house tailor-made Remote operation of pan- Time-bound Consumer No Liquidity Risk: Ten
Slide 37: Adani: World-class Credit Portfolio Attracting Global Investors
2020 Adani: World-class Credit Portfolio Attracting Global Investors Size (USD Mn.) Coupon Price Current Yield* Energy & Utility Portfolio Company Issue date Issue Size (USD Mn.) Coupon Yield# Maturity Date AverageDebt structureDTD Maturity Debt Ratings structure Transmission & Distribution ATL – Ob
Slide 38: ATL: Capital Management Program Demonstrating Global Excellence
2020 ATL: Capital Management Program Demonstrating Global Excellence Highlights Obligor 1 Obligor 2 USPP AEML ATIL MEGPTCL STL, ATRL, CWRTL, RRWTL, AEML Asset PPP-8,9,10 FY20 Operational EBITDA (Rs. Crs) 1,683 596 1,805 Tenor 10 year 16.5 year 30 year 10 year Issue size (USD mn) US$ 500 mn US$ 500 m
Slide 39: ATL is rated Investment Grade from FY16 and beyond
2020 ATL is rated Investment Grade from FY16 and beyond International- Obligor Group SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Negative ATL ICRA, India Ratings AA+ Stable S&P Dollar Bond BBB-/Stable AEML India Ratings AA+
Slide 40: ATL's Evolution and Operational Asset Portfolio
2020 ATL’s Evolution and Operational Asset Portfolio ATL’s Transmission Network (ckt km) has grown 2.8x Adani Transmission Limited and Distribution business being acquired in FY19 ATL’s “Grid-to-Switch” Integrated Platform 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP
Slide 41: ATL: Locked-in Growth from Under-construction Asset Portfolio
2020 ATL: Locked-in Growth from Under-construction Asset Portfolio Adani Transmission Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ghatam- Obra-C WRSS – Bikaner - Lakadia Kharghar NKTL Jam Kham- FBTL Banas- HVDC# pur Badaun XXI (A) Khetri baliya - Vikhroli kantha North Fategarh Gha
Slide 42: ATL: Q3FY21 - Operational Highlights: Snapshot
2020 ATL: Q3FY21 - Operational Highlights: Snapshot Transmission business Distribution business Network Distribution Availability Consumers length Losses • Added transmission Q3FY21 network of 650 ckt 99.83% 15,487 ckt km 3.06 million 6.70% km in Q3 • Distribution loss Q3FY20 reduced to 6.7% in 99.5
Slide 43: ATL: Q3FY21 Financial Highlights – Snapshot
2020 ATL: Q3FY21 Financial Highlights – Snapshot Consolidated Transmission Distribution Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Operating Revenue 2,292 2,572 704 679 1,588 1,893 Transmission business performance is broadly insulated from current disruptions resulting into Operating 1,125 1,060 str
Slide 44: ATL: 9MFY21 - Operational Highlights: Snapshot
2020 ATL: 9MFY21 - Operational Highlights: Snapshot Transmission business Distribution business Network Distribution Availability Consumers length Losses 9MFY21 99.87% 15,487 ckt km 3.06 million 7.90% 9MFY20 99.73% 14,738 ckt km 3.05 million 7.89% Distribution business Supply Reliability Units Sold
Slide 45: ATL: 9MFY21 Financial Highlights – Snapshot
2020 ATL: 9MFY21 Financial Highlights – Snapshot Consolidated Transmission Distribution 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 Operating Revenue 6,564 8,017 2,072 2,021 4,492 5,996 Transmission business performance is broadly insulated from current Operating disruptions resulting into EBITDA 3,19
Slide 46: ATL: Revenue and EBITDA trend (FY18-FY20)
2020 ATL: Revenue and EBITDA trend (FY18-FY20) (In Rs. Crores) Operating Revenue performance Operating EBITDA performance Transmission Distribution 10,237 Transmission Distribution Margin 92% 24% 4,287 6,530(1) 91% 19% 7,532 1,805 2,857(1) 91% 3,944 806 4,270 1,944 2,482 3,944 2,051 1,944 2,704 2,26
Slide 47: ATL OG - Profit and Loss Summary (FY17-FY20)
2020 ATL OG - Profit and Loss Summary (FY17-FY20) Particulars (US$ mn) FY20 FY19 FY18 FY17 Revenue from Operations 281 264 451 311 Revenue from sale of 119 127 113 traded goods 121 Other Income 37 32 21 12 Finance Costs 112 106 126 139 Depreciation & Amortization 80 80 87 84 Purchase of stock-in-tra
Slide 48: ATL OG - Balance Sheet (FY17-FY20)
2020 ATL OG - Balance Sheet (FY17-FY20) Particulars (US$ mn) FY20 FY19 FY18 FY17 Tangible Assets 1,071 1,158 1,341 1,371 Long-Term Loans and Advances 20 23 19 17 Other Non-current Assets 797 884 699 87 Cash and Bank Balances 167 29 88 56 Other Current Assets 357 236 174 235 Total Assets 2,412 2,330
Slide 49: Legal Disclaimer
2020 Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 50: Thank You
adani Transmission Thank You -€
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