Azure Power Global Limited · OTC:AZREF
Azure Power Global — Investor Presentation (June 2020)
24 slides from Azure Power Global's investor presentation, June 2020
Slide 1: Investor Presentation June 2020
7 GW+ Pan India portfolio of solar assets India’s first private grid connected MW solar plant Issued India’s first solar Green Bond Investor Presentation June 2020 0|Copyright © 2020 Azure Power |www.azurepower.com
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
Slide 3: Azure Power Overview: A Leading Pan Indian Solar Power Developer
Azure Power Overview (AZRE: NYSE) A Leading Pan Indian Solar Power Developer Portfolio of 7,115 MWs(1) (1,808 MWs Operational, 1,307 MW Contracted, 2,000 MW Committed and 2,000 MW Greenshoe (1,2) ) 6,948 MWs 167MWs Utility-Scale Projects Azure Roof Power •• Founded in 2008, built India’s first priva
Slide 4: The Solar Advantage in India
The Solar Advantage in India Electricity Usage per Capita (MWh) 12.8 US: ~14x > India Azure’s solar plants have ~100 mn people without high availability Seasonal Energy direct power source Curve Summer Monsoon China: ~5x > India 4.3 India-Demand Peak Low 0.9 Solar-Generation Peak Low USA China India
Slide 5: 7,115 MW Committed Portfolio, 1,808 MWs Operational
7,115(1) MW Committed Portfolio, 1,808 MWs Operational ~90% (2) in High Irradiation Zone ~6%(2) in Mid Irradiation Zone Focus on Strong Counterparty Credit Punjab (214 MW) 214 MW Rajasthan (3,675 MW) BBB- & above 475 MW Uttar Pradesh (100 MW) 95% ~95% of the portfolio 100 MW 3,200 MW is Investment G
Slide 6: Visible Historical and Future Growth
Visible Historical and Future Growth Growing Portfolio with Strong Contracts in Place Substantial Revenue Growth to Portfolio Run-Rate(1)(2) 7,800 7,115 6,500 $711(1) 5,115 Revenues (US $ Million) 5,200 MWs 3,115 3,900 600 Committed 707 1,808 2,600 Under Construction 1,300 $144 $172 $112 - $44 $61 O
Slide 7: Key Highlights of Recent Developments
Key Highlights of Recent Developments No material adverse impact from COVID-19, to date; Operational assets on track; We expect MWs under construction will be completed Present Value of Equity(3) before expected revised COD. (No value for growth beyond current portfolio or cost reductions) $2,500 Ca
Slide 8: COVID-19 Update: Azure Power As A Safe Haven
COVID-19 Update: Azure Power As A Safe Haven No Material Adverse Impacts From COVID-19 Performance Illustrates Quality and Predictability of Assets and Cash Flows Strong Liquidity through at least March 31, 2021(1) With Superior Access to Capital and Operations, Azure Should Further Differentiate It
Slide 9: Recent 4 GW Project Win Is Value Accretive
Recent 4 GW Project Win Is Value Accretive Tariff ~15% Present Value of Equity for 4 GW Win higher than $1,000 Potential of (USD Mn) similar SECI Opportunity $800 around 6.0x central grid for 20%+ $600 EV/EBITDA connected equity IRRs $400 PV of Equity Value build cost auctions we $200 have won $- 10
Slide 10: Historical and Future Strong Growth
Historical and Future Strong Growth MWs Operational Guidance MWs EBITDA, Cash Flow to Equity(2) and Debt 8,000 7,000 Forecast 6,000 USD Millions EBITDA: CAGR 32% $700 $575 - $675 5,000 4,000 $600 3,000 2,000 CAGR 45% $500 1,000 - $400 FY'17(a) FY'18(a) FY'19(a) FY'21(e) FY'22(e) FY'23(e) FY'24(e) FY
Slide 11: Published First Sustainability Report; Launched Sustainability Website
Published First Sustainability Report; Launched Sustainability Website Highlights Avoided 5.2 mn tons of CO2 equivalents since inception (1) 50% saving last year in water consumption per unit of electricity generated (2) Aim to become water neutral over the coming years Environment Volunteer
Slide 12: Corporate Social Responsibility Programmes
Corporate Social Responsibility Programmes Promoting livelihood enhancement by providing Donation of modified wheelchair and two Promoting education by providing smart class in skill development across 7 sites in Gujarat wheelers to the disabled army veterans Government schools across multiple state
Slide 13: Strong Governance and Disclosure Standards
Strong Governance and Disclosure Standards Only Indian Solar Independent Power Producer listed on NYSE Standards reinforced by listing requirements Strong Corporate Governance Home country SEC & NYSE SGX-ST requirements that requirements regulatory also require regular requiring periodic requirement
Slide 14: Experienced Board Backed by Long Term Marquee Shareholders
Experienced Board Backed by Long Term Marquee Shareholders IFC Global Infrastructure Fund Increased stake in Azure Power to c.50.9% through multiple rounds & Made its first investment in company in 2010 and increased stake open market purchase through multiple rounds with current holding of c.24
Slide 15: FY'20 Key Performance Metrics
FY’20 Key Performance Metrics 1,808 MW Operating 7,115 MW(3) Operating US$ 0.43m Project US$ 43.0 mn CFe for & Committed Cost/MW (DC) Operating Assets 25% increase(1) 112% increase 27% reduction(2) 15% increase(1) • 367 MW (610MW DC) commissioned • 707 MWs are under construction • DC cost per MW US$
Slide 16: Reiterating FY'21 Guidance
Reiterating FY’21 Guidance 2,650 – 2,950 MWs INR 15,800 – 16,600 million(1) Operating by March 31, 2021 of Revenue for FY’21 1Q FY’21 Revenue: INR 3,800 – 4,000 million Q1 FY’21 PLF 22%-23% _________________________ 1) US$ 210- 220 Mn (at March 31, 2020 exchange rate- INR75.39 to US$1) 15
Slide 17: Contacts
Contacts Investor Contact Media Contact Nathan Judge, CFA Samitla Subba ir@azurepower.com pr@azurepower.com +1 (917) 209-6750 +91-11- 4940 9854 Investor Relations, Marketing, Azure Power Azure Power 16
Slide 18: Appendix
Mwy yee < SWhwe Power Appendix
Slide 19: Use of Non-GAAP Financial Measures: EBITDA
Use of Non-GAAP Financial Measures: EBITDA Adjusted EBITDA is a non-GAAP financial measure. We present Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures of
Slide 20: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended March 31, Year Ended March 31, (in million) (in million) 2019 2020 2020 2019 2020 2020 INR INR US$ INR INR US$ Net profit (loss) 241 (394) (5.2) 138 (2,337) (30.9) Income tax expense/ (18) 82 1.1 153 489 6.5 (benefit) Inte
Slide 21: Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe)
Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe) Cash Flow to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP meas
Slide 22: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the year ended For the year ended March 31, 2019 March 31, 2020 (US$ millions) Operating Others Total Operating Others Total Sale of power 131.7 - 131.7 171.9 - 171.9 Cost of operations 11.5 - 11.5 15.2 - 15.2 General and administrative 7.1 10.3 17.4 15.1 17.1 32.3 Depr
Slide 23: Cash Flow to Equity (CFe) – Contd.
Cash Flow to Equity (CFe) – Contd. (1) Other items from the Statement of Cash Flows: These include most of the items that reconcile “Net (loss) gain” and “Operating profit before changes in working capital” from the Statement of Cash Flows. Other items include: loss on disposal of property plant and
Slide 24: Thank You
Thank You 23 23
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