Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Investor Presentation (August 2023)
43 slides from Adani Energy Solutions's investor presentation, August 2023
Slide 1: Adani Energy Solutions Limited Equity Presentation
Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Equity Presentation August 2023
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio 09-10 About AESL 12-16 Transmission 18-21 Distribution 23-26 Smart Metering 28-29 District Cooling 31 ESG Framework 33 Investment Case 35-41 Annexure
Slide 3: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Infrastructure and Utility Primary Industry Flagship Emerging B2C Core Portfolio Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to Consumer Mining (56.3%) (63.2%) (67.7%) (70.9%) (62.9%) (100%) AGEL AESL APSEZ Cement
Slide 5: Adani Portfolio: Decades long track record of industry best growth with national footprint
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x Growth 4x EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x Growth 1.4x APSEZ Adani’s Core Infra. Platform – AGEL 320 Mn U
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Centre of Excellence Project Management & Assurance Group AIMSL* Policy - Strategy - Risk Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisi
Slide 7: AESL: A platform well-positioned to leverage growth opportunities in energy domain
AESL: A platform well-positioned to leverage growth opportunities in energy domain RAB expansion through Execution Prowess Strategic Presence Asset Hardening in Mumbai Discom Transmission Network of Transmission - Presence in 14 states Development 19,820 ckm(1) Distribution - Integrated utilities ca
Slide 8: About AESL
adani Energy Solutions Adani Energy Solutions Ltd. (formerly known as Adani Transmission Ltd.) adani Energy Solutions =i, Smart Metering About AESL
Slide 9: AESL: Business Snapshot
AESL: Business Snapshot IHC 1.4%(1) Adani Family 70.9% GQG 6.6%(3) Public Shareholding 21.1% Transmission Distribution Smart Metering District Cooling 100% 25.1%(2) 74.9% 100% 100% 100% 100% AEML MUL Section 63 Section 62 Mundra Parallel License (under approval): AMI Projects of 16 million meters BO
Slide 10: Transformational Journey with Robust Growth and Credit Discipline
Transformational Journey with Robust Growth and Credit Discipline EBITDA (Rs. Crs) 6,101 5,493 5,066 4,519 2,937 3,113 1,997 2,005 FY16 FY17 FY18# FY19 FY20 FY21 FY22 FY23 Transmission Distribution Net Debt to EBITDA(2) (x) Gross Fixed Assets(3) (Rs Crs) AESL is Investment grade rated since FY16 4.2
Slide 11: Transmission
lani Energy Solutions
Slide 12: Transmission Business
Transmission Business Transmission Section 63 Section 62 Key Characteristics (Fixed tariff1) (RAB Assets) Concession Life : 35 years 29 Transmission Assets 5 Transmission Assets Counterparty : Network pool (Centre and State) 9 Under-construction 1 Under-construction 20 Operating Assets 4 Operating A
Slide 13: Asset Portfolio – Presence Across the Country
Asset Portfolio – Presence Across the Country ~19,820 ~52,001 14 ckt km MVA States Transmission Transmission Line Capacity No Operational Ckt Kms 20 OBTL 630 1 MEGPTCL 1,217 21 WRSS_XXIA 295 2 ATIL 3,834 22 LBTL 351 3 ATSCL 97 23 JKTL 37 4 MTSCL 300 24 MUL 151 5 WTGL 974 Subtotal (A) 15,294 6 WTPL 2
Slide 14: Private Participants Opportunity of ~US$ 28 bn projects over 10-15 years
Private Participants Opportunity of ~US$ 28 bn projects over 10-15 years Attractive Industry Opportunity backed by strong policy support RE penetration & General Network Access to boost system strengthening – Mandatory competitive bidding introduced since 2006 (TBCB) Renewable Penetration General ne
Slide 15: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Complex projects experience: Completed HVDC project − Route alignment on topographic maps to optimize route & (~1000 kms) in a record time of 24
Slide 16: Project Management & Assurance Group (PMAG) - End to End Project Integration
Project Management & Assurance Group (PMAG) - End to End Project Integration Bidding, Site Scouting Project Development & Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of 2,000+ man-years of co
Slide 17: Distribution
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission Distribution 14
Slide 18: Distribution Business
Distribution Business Distribution Section 62 (RAB Assets) AEML MUL Parallel Licensing Key Characteristics (applied and proposed) Mumbai Mundra SEZ License period: Perpetual 400 sq km license area 85 sq km license area • Navi Mumbai & Thane • Gautam Buddha Nagar Regulated Asset Base: Regulated Asset
Slide 19: AEML Distribution: India's No. 1 power utility
AEML Distribution: India's No. 1 power utility, as per MoP, McKinsey, PFC (Scored 99.6/100) Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition RAB Addition (Rs Crs) Capitalised RAB (Rs Crs) About Mumbai 4,619 CAGR of 8% 8th Most Populous City in
Slide 20: MPSEZ Utilities Limited (MUL) - Overview
MPSEZ Utilities Limited (MUL) - Overview Mundra SEZ is strategically located with well developed supporting RAB(1,2) (Rs Cr) infrastructure serving as an attractive industrial hub – Electricity Distribution for Mundra SEZ area 51%, RAB FY23 49%, 41 Rs 81 Cr 39 – 160 Kms Distribution network MUL (84
Slide 21: Distribution and Parallel License Opportunity
Distribution and Parallel License Opportunity (1) – Power distribution is one of the largest consumer facing sectors in the country. 96.7% of ~270 mn households in India are connected to the grid and primarily owned and operated by state governments – AESL’s Distribution platform intends to position
Slide 22: Smart Metering
adani Energy Solutions Smart Metering
Slide 23: Smart Metering Business
Smart Metering Business Smart Metering Key Characteristics DBFOOT (Totex Model) Payment Security through Direct Capex + Opex Contract period: 10 Years debit facility Under Implementation Counterparty: Pool of over 80 Enhanced energy efficiency and RE million consumers integration 7 Contracts (16.2 M
Slide 24: Market Dynamics – Smart Metering Business
Market Dynamics – Smart Metering Business – AESL’s Market Share (LOA and L1) – 31% out of 109 Mn Smart Meters tendered so far – Untapped market – 141 Mn Smart meters Total Smart Meters Punjab Uttarakhand Awarded AESL LoA awarded, 31% Uttar Pradesh 20.7% Rajasthan Assam 69% Bihar 773K Madhya Pradesh
Slide 25: Smart Metering Contractual Framework
Smart Metering Contractual Framework Payment Flow under the Direct Debit Facility Agreement (DDF Agreement) Key Highlights of the Contractual Framework Online consumers Chosen Payment Direct Debit A/C Bank Account of payments and Gateway Agent Bank AMISP recharges Implementation model – Design, Buil
Slide 26: Smart Metering Opportunity under RDSS
Smart Metering Opportunity under RDSS – Smart meters enable demand side management, better efficiency & technological interventions to improve quality of power supply – Hence, GoI has embarked on a very ambitious target of deploying 250 mn smart meters over next 3 years by FY26 – Smart Metering Oppo
Slide 27: District Cooling
District Cooling 27 Picture source: GIFT City DC Plant
Slide 28: District Cooling Business
District Cooling Business The District Cooling System (DCS) produces chilled water in a central plant and distributes cooling capacity in the form of chilled water from the central plant to multiple buildings through a network of underground pipes for use in space and process cooling. − Opportunity
Slide 29: Four key segments to drive India's DCS demand
Four key segments to drive India’s DCS demand Cumulative Cooling Demand from key segments by FY30(1) (in Mn TR) Commercial Real To experience growth from 0.6 bn sqft (2019) 16% 84% 44.04 Estate to 1 bn sqft (2030) Global industrial cooling market, expected to 2.66 Industrial Cooling 20% 80% reach ~$
Slide 30: ESG Framework
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Slide 31: AESL: ESG Framework
AESL: ESG Framework United Nations GHG Protocol SBTi Global Compact Guiding IR framework Policies Guiding Principles and TCFD reporting CDP disclosure principle Disclosure Standards UN Sustainable GRI Standards Development Goals Policy Structure Focus Areas ESG • Environment Policy UNSDG aligned: E
Slide 32: Investment Case
Investment Case 32
Slide 33: AESL: Compelling Investment Case
AESL: Compelling Investment Case − Evolved and stable regulatory regime has enabled growth of AESL’s business into multiple segments (Transmission, Favorable Industry Distribution, Smart metering, District cooling) within energy domain Landscape − Focus on Grid reliability, consumerism and shift to
Slide 34: Annexures
Annexures 35 Regulatory Framework 36 AEML – Case Study 37 Smart Metering – Key Benefits 38-40 Project Level Details – Asset Portfolio 41 AESL - Board and Management Team 34
Slide 35: Regulated EBITDA / Regulatory Framework
Attractive Industry Opportunity supported by an Evolved and Stable Regulatory Regime EA 2003 ROA Distribution TBCB (AEML) 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 cos
Slide 36: AEML Case Study: Successful Acquisition and Turnaround
AEML Case Study: Successful Acquisition and Turnaround ✓ Uptick in regulated capex (INR cr) RAB (INR cr) – Low capex pre-acquisition on account of liquidity constraints Post-acquisition Projection – Investment in capex resulting in asset hardening → supply Pre-acquisition 1,449 7,547 7,978 1,409 1,2
Slide 37: Smart Metering – Key Benefits
Smart Metering – Key Benefits Technology transformation Real time information Two-way communication Key technology towards the Measures electricity consumption & Between the meter and the power utility through transformation of power sector in India communicates the consumption reading to the cellul
Slide 38: AESL's Operational Asset Portfolio (T&D) as of August 2023
AESL’s Operational Asset Portfolio (T&D) as of August 2023 Adani Energy Solutions Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP Bikaner Obra-C Lakadia WRSS – Jam ATIL MEGPTCL AEML MUL ATBSPL ATRL RRWTL CWRTL FBTL GTL APTL
Slide 39: AESL's Under-construction Transmission Asset Portfolio as of August 2023
AESL‘s Under-construction Transmission Asset Portfolio as of August 2023 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% Since AESL’s evolution its Transmission Network 100% 100% (ckms) has grown 3.5x and expanded into Distribution Khavda- MP Kharghar AEMIL KPS-1 NKTL WKTL Bhu
Slide 40: AESL's Smart Metering Under-construction Portfolio as of August 2023
AESL‘s Smart Metering Under-construction Portfolio as of August 2023 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% BEST APDCL APEPDCL APCPDCL APSPDCL MSEDCL MSEDCL BEST Smart Adani Energy Adani Energy Adani Energy Bhandup Baramati Zone NE Smart Metering Ltd. Solutions Step Soluti
Slide 41: AESL: Board and Management Team
AESL: Board and Management Team Managing Strong Sponsorship Independent Directors Director Mr. Gautam S. Adani Mr. Rajesh S. Adani Mr. Anil Sardana Mr. K. Jairaj Dr. Ravindra H. Mrs. Meera Shankar Ms. Lisa MacCallum (Chairman) (Director) (MD, AESL) Dholakia Skilled and Experienced Management Team Mr
Slide 42: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Energy Solutions Limited (together with its subsidiaries, the “Company” or “AESL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 43: Thank You
MUSHKILON KI adani 4 NAHI SUNTE, HUM KARKE DIKHATE HAIN, #HumKarkeDikhateHain @ adani Energy Solutions Thank You
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