Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Day (December 2019)
37 slides from Adani Green Energy's investor day presentation, December 2019
Slide 1: Adani Energy Day December 2019
Adani Green Energy Limited Adani Energy Day December 2019
Slide 2: Agenda
01 Adani Group 02 AGEL & Growth Framework 03 AGEL: ESG Showcase 04 AGEL: Investment Case Appendix AGEL - Adani Energy Day 2019 2
Slide 3: Adani: Leading Infrastructure and Utility Portfolio
Adani: Leading Infrastructure and Utility Portfolio Transport & Logistics Portfolio Utility & Power Portfolio 62.3% 100% 100% 75% 75% 75% 75%* Adani APSEZ AAPT SRPCL 75% Adani Power Adani Green Adani Gas Transmission (APL) (AGEL) (AGL) (ATL) Port & Logistics Port Rail Transmission IPP Renewables Gas
Slide 4: Adani: Repeatable, Robust and Proven Business Model
Adani: Repeatable, Robust and Proven Business Model Phase Development Operations Post operations Capital Phase Site development Construction O&M & technology management ▪ Return based ▪ Resource ▪ Template based ▪ RONC based ▪ Reduction of cost disciplined bidding assessment design analytics and of
Slide 5: Applied Consistently to Drive Value
…Applied Consistently to Drive Value Key Business Model Successfully Applied Across Infrastructure and Utility Platform Attributes Development at scale and within time and budget India’s Largest Longest Private HVDC Largest Private 648 MW Ultra Mega Largest Single Location Commercial Port Line in As
Slide 6: Agenda
01 Adani Group 02 AGEL & Growth Framework 03 AGEL: ESG Showcase 04 AGEL: Investment Case Appendix AGEL - Adani Energy Day 2019 6
Slide 7: AGEL: Robust Business Model with Rapid Growth & Predictable Returns
AGEL: Robust Business Model with Rapid Growth & Predictable Returns Execution Total Portfolio Diversified Portfolio1 Project Capex / EBITDA strength and 5,2901MW 11 states 6.0x pan-India (2,420 MW Operational/ 50% solar; 32% wind; 18% hybrid 2,870 MW Under Construction) 6.21x (fully Built basis) pre
Slide 8: AGEL: Large Diversified Portfolio With Strong Counterparties
AGEL: Large Diversified Portfolio With Strong Counterparties 5,2901 MW Portfolio | 2,420 MW Operational Strong PPA counterparties Operational Under Implementation Wind State Govt. Offtakers 35% Solar 175 100 Solar-Wind 100 Hybrid 5,290 Govt. of India MW Owned Offtakers 220 ▪ SECI AA+ 65% Domestic Ra
Slide 9: AGEL Context – Key Considerations
AGEL Context – Key Considerations GoI committed to Renewable Energy : 450 GW by 2030 AGEL will continue to have a large development portfolio… Resultant risk considerations 5290 5290 Development/Construction risk 4560 1000 UC (MW) • Resource / site and connectivity availability Operational (MW) 2520
Slide 10: Construction, O&M & Capital Mgmt. to Counter-balance Falling Tariffs
Construction, O&M & Capital Mgmt. to Counter-balance Falling Tariffs Renewable tariffs are in a downward trend 4 focus areas to ensure stable returns Range of Solar tariffs in India in INR/kwh Past practices AGEL Strategic Response 1 • Smaller Plants : 20- 100 MW • Larger plants : GW+ scale 9.3 Robu
Slide 11: Robust Development Exp To Be Leveraged For Better Returns
1 Robust Development Exp To Be Leveraged For Better Returns Execution track record: 2.4 GW Operational portfolio AGEL’s installed capacity 350 Operational Capacity Avg Tariff Project Cost1 EBITDA2 Capex / 2,420 MW operational up to Nov 2019 Portfolio (MW) (INR/kWh) INR/ MWh (INR Cr) EBITDA Solar 2,1
Slide 12: O&M: RONC led Plant Availability and Scale led Cost Reduction
2 O&M : RONC led Plant Availability and Scale led Cost Reduction Centralized Monitoring led Improvements Centralized Improving operational performance Scale led cost reduction Moving from smaller to CUF improvement Site(s) Level Data Capture larger sites in future will lead +9% to various efficienci
Slide 13: Efficient Capital Mgmt. Leading To Lower Costs & Extended Maturities
3 Efficient Capital Mgmt. Leading To Lower Costs & Extended Maturities Capital Arrange Project Project Operational projects Upstreaming Mgmt. Finance & Implementation & bundled & refinanced of cash for further Philosophy Construction Finance Commissioning opportunistically growth Capex/ ~4.5x Debt U
Slide 14: AGEL RG 2 – Value Creation through Capital Management
3 AGEL RG 2 – Value Creation through Capital Management First Investment Grade bond deal out of the India renewables space Net Free Cash Initial Project Financing released on Post Refinancing refinancing INR 130 Cr Significant increase in residual cash post-refinancing FY20 FY21 FY22 FY23 FY24 FY20
Slide 15: Locked-in Growth with Consistent Returns
Locked-in Growth with Consistent Returns Ascertained Through Efforts On Robust Construction, Efficient O&M and Capital management Under Capacity Avg Tariff EBITDA1 Project Cost/ MWh Capex / EBITDA Construction (MW) (INR/kWh) (INR Cr) Solar 475 2.77 16,695 298 6.50 Wind2 1,405 2.66 16,570 1,233 6.58
Slide 16: Agenda
01 Adani Group 02 AGEL & Growth Framework 03 AGEL: ESG Showcase 04 AGEL: Investment Case Appendix AGEL - Adani Energy Day 2019 16
Slide 17: AGEL ESG Philosophy
AGEL ESG Philosophy ▪ Increased efficiency of plant – Matching the load curve through hybrid (solar + wind) power plant – RONC launched as digital monitoring and data analytics platform for better responsiveness ▪ Resource Management Environmental – Effective usage of unproductive land for developme
Slide 18: AGEL – Environment awareness and initiatives
AGEL – Environment awareness and initiatives AGEL recognizes that below environment related factors have major impact on its business model Climate Awareness Offsetting of Carbon Resource Management Waste Management Emissions Increased efficiency Resource Management Waste Management ▪ Matching the l
Slide 19: RONC led centralized monitoring boosting AGEL’s climate readiness
RONC led centralized monitoring boosting AGEL’s climate readiness Climate Awareness and Climate Readiness Climate Alignment RONC (Remote Operations Nerve Center) Leading to ▪ Centralization of overall management of all Adani sites from a single location Reduction in carbon footprint due to reduced
Slide 20: Technology intervention enabling effective management of resources
Technology intervention enabling effective management of resources boosting climate efficiencies Reduction in water usage for module cleaning Efficiency in land usage ▪ AGEL has been a pioneer in adoption of latest technologies for ▪ Sites are identified for setting up solar / wind projects proc
Slide 21: Adani Green – Serving Community and bettering lives
Adani Green – Serving Community and bettering lives Land Beneficiaries ▪ Non agricultural land used for plant setup preventing the livelihood of farmers ▪ Land beneficiaries are fairly treated & documented process is followed for land acquisition ▪ Fairness towards Land beneficiaries – Land record h
Slide 22: AGEL’s Governance – Journey so far and future glide path
AGEL’s 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 Bankruptcy Remote Structure for RG1 and RG2 assets CORPORATE BEHAVIOUR Bankruptcy remote structure to be implem
Slide 23: AGEL has integrated ESG into its way of business
AGEL has integrated ESG into its way of business providing enhanced value creation The integrated ESG framework has resulted in access to larger pool of capital at reduced cost value accretive returns Environmental Social Governance ▪ Renewable Power supply at below APPC (for ▪ Better vendor man
Slide 24: Agenda
01 Adani Group 02 AGEL & Growth Framework 03 AGEL: ESG Showcase 04 AGEL: Investment Case Appendix AGEL - Adani Energy Day 2019 24
Slide 25: AGEL: Compelling Investment Case
AGEL: Compelling Investment Case Infrastructure Adani group is a leader in infrastructure –ports, T&D, thermal power and renewables lineage Proven track record of excellence in development & construction India plans to grow renewables from 75 GW to 175 GW by 2022; Being further extended to 450
Slide 26: Thank you!
Thank you! AGEL - Adani Energy Day 2019 26
Slide 27: Agenda
01 Adani Group 02 AGEL & Growth Framework 03 AGEL: ESG Showcase 04 AGEL: Investment Case Appendix AGEL - Adani Energy Day 2019 27
Slide 28: Attractive Outlook of Indian Renewable Industry
Attractive Outlook of Indian Renewable Industry Low Per Capita Power Consumption Untapped Solar and Wind Resources Low Generation Share Per capita power consumption (KWh) Thermal Renewable Hydro Nuclear Potential Installed capacity in GW (Apr-2019) US: ~11.3x India 12,984 749.0 3.0% Expected to 10.0
Slide 29: AGEL: Growth Assurance
AGEL: Growth Assurance Risk Areas Assurance Practice 1 ▪ Land identified and applied for, with preference to Hybrid sites & definitive evacuation Land Procurement ▪ Project delays infrastructure & Connectivity ▪ Ready sites to house future projects 2 ▪ Adequate Internal Cash ▪ Unlocking of Cash by D
Slide 30: Asset Level Details - Operational
Asset Level Details - Operational Solar Wind Projects Hybrid Contracted Capacity Counterparty Credit SPV Project Name / Location Type Capacity (DC) Tariff COD Counterparty Name PPA Term (AC) Rating AGETNL Solar 216 260 7.01 Mar-16 TANGEDCO ICRA (B) 25 RSPL Solar 72 86 7.01 Feb-16 TANGEDCO ICRA (B) 2
Slide 31: Asset Level Details – Under Construction
Asset Level Details – Under Construction Solar Wind Projects Hybrid Counterparty Counterparty PPA SPV Project Name / Location Type Capacity (AC) Capacity (DC) Tariff COD Name Credit Rating Term AGEONEL Gujarat Solar 150 210 2.67 Nov-20 GUVNL ICRA (A+) 25 GSBPL Gujarat Solar 100 140 2.44 Aug-20 GUVNL
Slide 32: RONC – World Class Monitoring and Analytics
RONC – World Class Monitoring and Analytics Remote Operations Nerve Center RONC Operational Flow Centralization of overall management of all Site(s) Level Data Capture Adani sites from a single location Data Analytics driven decision making Drive world class operational performance PV Solar En
Slide 33: Financial Metrics
Financial Metrics Revenue 1 (Rs Cr.) EBITDA (Rs Cr.) 544 554 472 449 456 462 470 496 439 422 402 399 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Cash profit 1 (Rs Cr.) PAT (Rs Cr.) 102 251 257 228 207 -74 173 -94 -98 138 -119 -187 Q1 FY19 Q2 FY19 Q
Slide 34: Consolidated Statement of P&L
Consolidated Statement of P&L Particulars (INR Cr) H1’20 H1’19 FY19 Revenue from operations - Sale of Energy 1,016 921 1,921 - Other Operating Income 332 - 137 Other income 38 21 73 Total Revenue 1,387 941 2,131 Cost of material consumed and others 314 - 130 Other expenses including Employee benefit
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Cr) As on 30 September 2019 As on 31 March 2019 Assets Non-current Assets Property, Plant and Equipment – Gross block 12,693 12,327 - Accumulated depreciation (2,127) (1 943) - Net block 10,566 10384 Capital Work-In-Progress 1,736 743 Right-of-Use Asset 25
Slide 36: Change in Accounting Policy & Other Financial Metrics
Change in Accounting Policy & Other Financial Metrics Key Change in accounting Policy AGEL has changed method of depreciation from WDV to SLM w.e.f. 1st April 2019 AGEL has opted for concessional income tax rate as amended by Taxation Laws (Amendment) Ordinance, 2019 (INR Cr) PBT based on SLM de
Slide 37: Power Generation Receivables
Power Generation Receivables Operational counterparties Payment Security Mechanism LC Status as of 30th November 19 Soverign LC Received (NTPC & SECI) 27% 27% 36% 36% SECI PPAs (LC Rated A & above Ministry of Power mandated 2,420 DISCOMs to open and maintain expected soon) MW % MW LC not received LC