Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — FY2023 Earnings Presentation
59 slides from Adani Green Energy's earnings presentation
Slide 1: Earnings Presentation FY23 (Consolidated Financials)
Earnings Presentation FY23 (Consolidated Financials) 1
Slide 2: Contents
CONTENTS 1 Adani Group 2 AGEL: Company Profile 3 AGEL: Transformational Advantage 4 AGEL: Operational & Financial Highlights 5 AGEL: ESG 6 AGEL: Investment Rationale Annexures
Slide 3: Adani Group
Adani Group Renewables
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (69.2%) (57.3%) (71.6%) (65.1%) (100%) (63.2%) AGEL ATL APSEZ AEL NQXT1
Slide 5: Adani Portfolio: Decades long track record of industry best growth
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 5x EBITDA 70% 1,2 EBITDA 92% 1,4 Core Portfolio Utility 92% Transport 85% Consumers ~400 mn Served Growth 3x
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt • Engineering & design • Redesigning the capital structure Activity • Analysis & market • Site acquisition • Life cycle
Slide 7: AGEL: Replicating Group's Simple yet Transformational Business Model
AGEL: Replicating Group's Simple yet Transformational Business Model Secure Sites & Connectivity Resource Assessment Construction Readiness Development ~2,00,000 acres ~40 GW potential Geotechnical studies Resource rich sites in strategic locations 85+ Wind data locations and detailed design plannin
Slide 8: Adani Green Energy Limited: Company Profile
Adani Green Energy Limited Company Profile Renewables 8
Slide 9: AGEL at a glance
AGEL at a glance Adani Family 57.3% 3.7% 4 1.4% 1.3% 19.7% Other Public 16.6% Shareholders 50% 50% 100 % 100 % 100 % AGE23L 1 Other Operating Locked-in Under Execution Near construction 2,353 MW 5,733 MW 10,215 MW 2,133 MW portfolio: 20,434 MW Large Renewable 8,086 MW – Operational 86% Resource and
Slide 10: Largest Renewable Energy player in India
AGEL: Largest Renewable Energy player in India Pan India Presence 1 2.5x Locked-in Growth Renewable Capacity (in MW) 45,000 10% of India’s RE Operational Under exec../ Near Const. Target Wind Solar 8,086 MW – Operational 5.5x Solar-Wind Hybrid 10,215 MW – Under execution 20,434 2,133 MW – Near Const
Slide 11: Adani Green Energy Limited: Transformational Advantage
Adani Green Energy Limited Transformational Advantage 11
Slide 12: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle SUSTAINING GROWTH MOMENTUM Project Execution Site and Evacuation − PMAG - Central team with deep experience − ~40GW of strategic sites with geotechnical, − Execution of large scale sites – 2.1 GW World’s resource analysis
Slide 13: Construction ready Strategic Sites with high resource potential (40GW)
Construction ready Strategic Sites with high resource potential (40GW) Identified high resource potential sites of ~2,00,000 acres in Rajasthan and Gujarat Rajasthan and Gujarat Clusters Connectivity granted for entire ~2,00,000 Acres Of Land ~2,00,000 acres portfolio. Predominantly Owned By For pla
Slide 14: Expertise in developing Mega scale RE projects
Expertise in developing Mega scale RE projects FY23 2.1 GW Single Location Hybrid RE Projects spread over ~ 11,500 acres World’s largest Hybrid RE Cluster 7X Next Milestone GJ: Khavda 15 GW Hybrid Project Module: 570+ Wp (33.6 Million Nos) MMS: 100% Tracker with Robotic Cleaning WTG: 5X machines ~ 3
Slide 15: Project Management & Assurance Group (PMAG)
Project Management & Assurance Group (PMAG) - End to end project integration Bidding, Project Development & Basic Site Scouting Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 120 professionals having hands-on experience of above 2,000 man-years
Slide 16: Technology Enabled Operational Excellence
Technology Enabled Operational Excellence – AGEL operating assets currently spread across 12 states. Portfolio managed by O&M team of ~ 1100 personnel – Cluster based operating model enabling smooth governance and efficient utilization of manpower and spares: Personnel spread across Central office →
Slide 17: Replicating Adani Business Model: Capital Management Philosophy
Replicating Adani Business Model: Capital Management Philosophy De-risking of underling SPVs to generate and release surplus cashflows for AGEL Mgmt. throughout Project lifecycle De-risking integrated in Capital Project Financing Stabilization HoldCo. Financing Post-Stabilization Phase SPV level Pha
Slide 18: Growth and Cash Generation capability De-risked
AGEL: Growth and Cash Generation capability De-risked Industry leading Capacity growth with steadily increasing Operating Base thereby reducing the overall portfolio risk 9,000 8,000 Operational Capacity (MW) 7,000 6,000 5,000 33% CAGR 4,000 8,086 3,000 5,410 2,000 3,470 2,545 1,000 1,918 1,970 - Ma
Slide 19: Operational & Financial Highlights
Operational & Financial Highlights FY23 Renewables Largest Operational 19 Revenue EBITDA EBITDA margin Cash Profit Capacity in India 49% 54% 57% Consistent and Industry 72% up YoY up YoY up YoY leading EBITDA margin up YoY
Slide 20: Executive Summary – FY23
AGEL: Executive Summary – FY23 Capacity Addition & Operational Performance ✓ Operational Capacity increases by 49% YoY to 8,086 MW, the largest operational renewable portfolio in India ✓ AGEL adds a massive 2,676 MW renewable capacity to its operational fleet in FY23: ▪ 2,140 MW solar-wind Hybrid pl
Slide 21: Executive Summary – FY23 (Contd..)
AGEL: Executive Summary – FY23 (Contd..) Other Key Recent Updates ✓ Supreme Court upheld the favorable order from APTEL for 288 MW solar plants at Kamuthi, Tamil Nadu that has resulted in one-time revenue upside of Rs 748 Cr (including late payment surcharge) and recurring positive annual impact of
Slide 22: Operational Capacity Addition & Sale of Energy – FY23 (YoY)
AGEL: Operational Capacity Addition & Sale of Energy – FY23 (YoY) Operational Capacity (in MW AC) Hybrid 8,086 49% ` Wind 2140 Solar 5,410 2 ✓ Operational Capacity increases by 49% to 8,086 MW 971 647 ❑ Operationalized 2,140 MW solar–wind Hybrid power 4,763 4,975 plants, India’s first and World’s la
Slide 23: Operationalized 2,140 MW Hybrid Cluster in Rajasthan in FY23
AGEL: Operationalized 2,140 MW Hybrid Cluster in Rajasthan in FY23 Solar irradiation of 2000 kWh/ sqm – top 5 in India Perfect location for Ideal Wind speed of 7 meters/ second Hybrid Ample availability of Non-agricultural Barren land 390 MW Cluster based All projects in a Single Cluster around Fate
Slide 24: Operational Performance – FY23 (YoY) – Solar & Wind Portfolio
AGEL: Operational Performance – FY23 (YoY) – Solar & Wind Portfolio Solar Portfolio Performance Wind Portfolio Performance CUF (AC) Sale of Energy (mn units) CUF (AC) Sale of Energy (mn units) 23.8% 24.7% 10,457 29% ` 30.8% 1,820 37% ` 8,097 25.2% 1,329 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 • Sale
Slide 25: Operational Performance in FY23 – Hybrid Portfolio
AGEL: Operational Performance in FY23 – Hybrid Portfolio Plant Availability Grid Availability 99.9% 96.3% 99.7% 97.4% 99.2% 99.1% • 2,140 MW Solar-Wind Hybrid projects operationalized in FY23: - Solar: 1,980 MW Solar Wind Hybrid Solar Wind Hybrid - Wind: 868 MW • High CUF of 35.5% backed by: CUF (AC
Slide 26: Financial Performance – FY23 (YoY)
AGEL: Financial Performance – FY23 (YoY) (All figures in INR Crore) Revenue from Power Supply EBITDA from Power Supply 1 57% 5,538 ▪ The robust growth in revenues, EBITDA and Cash ` 54% 5,825 ` Profit is primarily driven by greenfield commissioning of 2,676 MW. 3,530 3,783 ▪ The state-of-the-art Ene
Slide 27: Bridge of EBITDA from Power Supply – FY22 to FY23
AGEL: Bridge of EBITDA from Power Supply – FY22 to FY23 (All figures in INR Crore) 1 EBITDA up by 57% YoY on back of improved revenue backed by significant increase in capacity 1. Change in Revenue also includes prior period tariff correction related 288 MW Kamuthi solar plant, change in Carbon Cred
Slide 28: Debt Evolution from Mar-22 to Mar-23
AGEL: Debt Evolution from Mar-22 to Mar-23 Gross Debt 1 (INR Cr) Net Debt Evolution (INR Cr) 3,866 5,571 6,008 1,399 4 38,297 40,455 Additional Repayment Regular Change in MTM Change in Debt for of Debt Repayment Working changes in Cash & Bank Mar-22 Mar-23 new through of Debt Capital Loan Foreign p
Slide 29: De-risking & reduced finance cost through Prudent Debt Management
AGEL: De-risking & reduced finance cost through Prudent Debt Management Long Term vs Short Term Split (INR Cr) – Mar’23 Gross Debt Mix 1 & Average Interest Cost 140% 11.1% 12.0% Long Term Debt Short Term Debt 120% 10.0% 9.5% Includes Short 100% 3% 2% 22% 8.0% New addition Term Trade 27% 80% 1% in th
Slide 30: ESG
Adani Green Energy Limited ESG Renewables AGEL is now certified Won the prestigious Continue to maintain for all its operating plants over from global ESG rating agencies 200 MW capacity by DNV ✓ CSR Hub (consensus ESG rating) at 97 percentile at Grow Care India Environment ✓ Sustainalytics ESG Risk
Slide 31: Robust ESG Framework
AGEL: Robust ESG Framework Guiding principles India Business & IFC E&S United Nations UN Sustainable Green Bond SBTi Biodiversity Performance Global Compact Development Goals Principles Initiative (IBBI) Standards Disclosure Standards Guiding Policies TCFD SASB GRI Standards CDP disclosure BRSR prin
Slide 32: ESG - Progress & Key Milestones
AGEL: ESG - Progress & Key Milestones CO2 Emissions avoided (mn ton) 36.70 Cumulative CO2 Emission avoided (Mn ton) Year wise CO2 Emission avoided (Mn ton) 23.20 14.60 13.50 9.40 8.60 5.38 4.02 5.20 3.58 0.58 0.44 1.80 1.22 0.14 0.14 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Cumulative CO2 emission av
Slide 33: Strong Governance Framework
AGEL: Strong Governance Framework Key Governance Areas Key Highlights ESG Governance Structure ✓ 50% Independent Directors Corporate Responsibility Board Independence & Diversity Committee at Board level ✓ 20% Women Directors ✓ Corporate Responsibility Committee in place with 100% Independent Direct
Slide 34: Adopted UN Sustainable Development Goals
AGEL : Adopted UN Sustainable Development Goals United Nations Sustainable Our Key Social Initiatives mapped to UNSDG Development Goals 2030 Rajasthan, o Provided Hospital beds in Karnataka; provided chairs and water coolers in Rajasthan Health 3. Good Health & Well-being Karnataka & other o Conduct
Slide 35: ESG – Ratings, Awards and Recognition
AGEL: ESG – Ratings, Awards and Recognition ESG Ratings AGEL’s Rating CSRHub (Consensus ESG Rating) ✓ Ranking of 97 percentile, with consistent ranking above Alternative Energy industry average Sustainalytics ✓ ESG Risk Rating of ‘Low Risk’ with a score of 15.3, significantly better than global Util
Slide 36: Case Study: AGEL becomes Water Positive
Case Study: AGEL becomes Water Positive Aligning to UN Sustainable Development Goal 6 ✓ Committed to water neutrality through reducing water consumption & conservation of water Potential rainwater Total freshwater intake Water saved is harvested and recharge for consumption created Certified Water +
Slide 37: Investment Rationale
AGEL: Investment Rationale Renewables
Slide 38: Key Investment Highlights
AGEL: Key Investment Highlights – World class project execution with equipment sourced from tier 1 suppliers through strategic alliances Excellent execution – Central monitoring of all project execution by Project Management & Assurance Group track record – Track record of executing projects ahead o
Slide 39: Appendix: Operational & Financial Highlights Q4 FY23
Appendix Operational & Financial Highlights Q4 FY23
Slide 40: Operational Performance – Q4 FY23 (YoY) – Solar & Wind Portfolio
AGEL: Operational Performance – Q4 FY23 (YoY) – Solar & Wind Portfolio Solar Portfolio Performance Wind Portfolio Performance CUF (AC) Sale of Energy (mn units) CUF (AC) Sale of Energy (mn units) 428 26.8% 6% 2,872 69% ` 2,717 ` 26.4% 23.6% 20.4% 254 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q
Slide 41: Operational Performance in Q4 FY23 - Hybrid Portfolio
AGEL: Operational Performance in Q4 FY23 - Hybrid Portfolio Plant Availability Grid Availability 99.9% 95.6% 98.8% 99.5% 97.1% 98.9% • 700 MW Solar-Wind Hybrid project operationalized in Q4 FY23 taking the total Hybrid Capacity to 2,140 MW: Solar Wind Hybrid Solar Wind - Solar – 1,980 MW Hybrid - Wi
Slide 42: Financial Performance – Q4 FY23 (YoY)
AGEL: Financial Performance – Q4 FY23 (YoY) (All figures in INR Crore) Revenue from Power Supply EBITDA from Power Supply 1 ▪ The robust growth in revenues, EBITDA and Cash 2,130 89% 1,968 Profit is primarily driven by greenfield commissioning ` 86% of 2,676 MW. ` 1,128 1,059 ▪ The state-of-the-art
Slide 43: Appendix: Receivables Details
Appendix 43 AGEL: Receivables Details
Slide 44: Receivables Ageing Profile
AGEL: Receivables Ageing Profile (in INR Cr) Due Not Due 31-Mar-23 Off Takers 31-Mar-23 0-60 days 61-90 days 91-120 days 121-180 days >180 days Total TANGEDCO 183 16 - - - - 16 NTPC 197 0 0 - - - 0 SECI 278 0 - - 0 0 0 KREDL 58 16 1 6 16 45 85 TSSPDCL 40 0 - - 0 11 11 Others 267 30 0 0 1 44 75 Total
Slide 45: Appendix: RG1 & RG2 Performance and Covenants
Appendix 45 RG1 & RG2 – Operational & Financial Performance RG1, RG2 & Holdco bond - Covenants
Slide 46: RG1 Portfolio (930 MW) Performance in FY23
AGEL: RG1 Portfolio (930 MW) Performance in FY23 Plant Availability Grid Availability 99.7% 99.0% 99.3% 99.0% FY22 FY23 FY22 FY23 • Consistent high plant availability leading to consistent CUF (AC) Sale of Energy (mn units) high CUF and sale of energy 23.2% 23.3% 1,892 1,895 FY22 FY23 FY22 FY23 Powe
Slide 47: RG2 Portfolio (570 MW) Performance in FY23
AGEL: RG2 Portfolio (570 MW) Performance in FY23 Plant Availability Grid Availability 99.9% 99.5% 98.9% 99.0% FY22 FY23 FY22 FY23 • Consistent high plant availability leading to consistent high CUF (AC) Sale of Energy (mn units) CUF and sale of energy 26.4% 1,313 1,320 26.3% FY22 FY23 FY22 FY23 Key
Slide 48: RG1 & RG2 – Bond Covenants v/s Actual
AGEL: RG1 & RG2 – Bond Covenants v/s Actual RG1 – Covenants Particulars Stipulated Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Debt Service Coverage Ratio 1.55* 1.67 1.94 2.05 1.88 1.84 1.83 1.76 FFO/ Net Debt 6% 10.32% 9.87% 9.71% 13.32% 14.97% 10.68% 8.13% Project Life Coverage Ratio 1.6 1.73
Slide 49: Appendix: ABEX: Driving Controllership at AGEL
Appendix ABEX: Driving Controllership at AGEL
Slide 50: ABEX: Driving Controllership at AGEL
ABEX : Driving Controllership at AGEL (in INR Cr) Adani Business Excellence (ABEX) delivers accounting & compliance services to group companies with an objective of providing assurance of process controls, timely compliance and risk mitigation through standardization, Simplification and automation B
Slide 51: Appendix: AGEL: Asset Level Details
Appendix 51 AGEL: Asset Level Details
Slide 52: Asset Level Details – Operational
Asset Level Details – Operational Contracted Capacity Capacity COD/ Counterparty PPA SPV Project Location Type Tariff Capitalizati (AC) (DC) on Name Term Tamil Nadu (AGETNL) Solar 216 260 7.01 Mar-16 TANGEDCO 25 Tamil Nadu (RSPL) Solar 72 86 7.01 Feb-16 TANGEDCO 25 AGETNL Tamil Nadu (KREL) Solar 72
Slide 53: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Contracted Capacity Capacity COD/ Counterparty PPA SPV Project Location Type Tariff Capitaliza (AC) (DC) Name Term tion PNCEL Punjab Solar 20 21 8.7 Mar-21 PSPCL 25 PNREL Punjab Solar 10 10.5 8.65 Feb-21 PSPCL 25 KNSSEPL Karnataka Solar 5 6.3 4.36 Oct-21 GE
Slide 54: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Contracted Capacity Capacity COD/ Counterparty PPA SPV Project Location Type Tariff Capitaliza (AC) (DC) Name Term tion AGEL – Lahori Madhya Pradesh Wind 12 12 5.92 Mar-16 MPPMCL 25 AWEGPL Gujarat Wind 30 30 4.19 Mar-17 GUVNL 25 AWEGPL Gujarat Wind 18 18 3.
Slide 55: Asset Level Details – Under execution
Asset Level Details – Under execution Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 4,667 6,767 2.42 SECI 25 Various SPVs Rajasthan/ Gujarat Solar+ Mfg 1,300 1,885 2.54 SECI 25 AREEL Gujarat Solar 150 225
Slide 56: Asset Level Details – Under execution (Contd.)
Asset Level Details – Under execution (Contd.) Contracted Capacity Planned Capacity Planned Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (AC) (DC) Name Term 600 Solar: 570 Solar: 855 AHEJFL Rajasthan Hybrid 2.41 SECI 25 Wind: 200 Wind: 200 Total Hybrid 600 770 1,055 2.41 10,215 14
Slide 57: Asset Level Details – Near Construction
Asset Level Details – Near Construction Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 2,033 2,948 2.92 SECI 25 Various SPVs Rajasthan Solar 100 142 NA Merchant NA Total Near Construction 2,133 3,090 2.92
Slide 58: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growth prospects, and fut
Slide 59: Thank You
Renewables 59 Thank You