Adani Power Limited · NSE:ADANIPOWER
Adani Power — Investor Presentation (November 2019)
54 slides from Adani Power's investor presentation, November 2019
Slide 1: Adani Power Limited Investor Presentation
Adani Power Limited Investor Presentation November 2019
Slide 2: 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 Power Limited (“APL”) and its subsidiaries , associates, and joint ventures (c
Slide 3: Contents
Contents 01 Adani Group 02 Overview of Adani Power Limited 03 Key Capabilities 04 ESG practices 05 Power Sector Updates 06 Regulatory Assets 07 Quarterly Financial Updates 08 Way Forward Appendix: Asset Details STRICTLY CONFIDENTIAL
Slide 4: Adani Group
01 Adani Group STRICTLY CONFIDENTIAL
Slide 5: ADANI: world class infrastructure & utility portfolio
ADANI: world class infrastructure & utility portfolio Transport & Logistics Portfolio Utility & Power Portfolio Adani 62.3% 100% 100% 75% 75% 75% 75% APSEZ AAPT SRPCL 75% ATL APL AGEL AGL Port & Logistics Port Rail T&D IPP Renewables Gas DisCom AEL Incubator 100% 100% 100% 100% AAHL ATrL AWL Data Ai
Slide 6: ADANI: repeatable, robust & proven model to deliver RoE
ADANI: repeatable, robust & proven model to deliver RoE Phase Phases Origination Development Construction Operations Post Operations O&M Opportunity Pipeline EPC & Funding Operation Capital Mgmt • Analysis & • Site acquisition • Engineering & • Life cycle O&M market • Concessions and design planning
Slide 7: ADANI: repeatable, robust business model applied consistently to drive value
ADANI: repeatable, robust business model applied consistently to drive value Key Business Model Attributes Successfully applied across Infrastructure & utility platform Development at scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Comm
Slide 8: Overview of Adani Power Limited
02 Overview of Adani Power Limited STRICTLY CONFIDENTIAL
Slide 9: Adani Power Limited Investment Case
Adani Power Limited Investment Case Largest private sector power producer with 14 GW thermal power portfolio – 12.4 GW MW operational, and 1.6 GW under construction Higher efficiency, lower emission: >75% capacity from Supercritical and Ultra-Supercritical(1) technology based units Stable and secure
Slide 10: Adani Power Limited: India's Largest Private Sector IPP
Adani Power Limited: India’s Largest Private Sector IPP 100% 100% 100% 100% 100% 100% Udupi Tiroda Raipur Raigarh Kawai Mundra (Karnataka) (Maharashtra) (Chhattisgarh) (Chhattisgarh) (Rajasthan) (Gujarat) Location Coastal, Utility Near-Pithead Plants Hinterland Coastal Highlight Fixed ROE High Dispa
Slide 11: Evolution of Adani Power Limited
Evolution of Adani Power Limited Incorporated 1996 Commissioned one of the Commissioned its first largest single location Completed acquisition of Completed thermal power unit at thermal power plants in the Lanco’s 1,200 MW “Return acquisition of Mundra, Gujarat of 330MW World – 4,620MW Mund
Slide 12: Diversified Portfolio
Diversified Portfolio Technology Split (14,0101 MW) Counterparty split2 (14,010 MW) 1,320 , 9% 3,120 , 22% 3,300 , 24% 1,600 , 11% 120 , 1% 1,598 , 11% 1,600 , 12% 9,290 , 2,592 , 19% 1,080 , 8% 66% 2,400 , 17% Supercritical Ultra-Supercritical Subcritical Maharashtra Haryana Karnataka Gujarat^ MT P
Slide 13: Large generation assets driving scale advantage
Large generation assets driving scale advantage 12,410 MW Operational Assets Total MW 1,320 1,600 MW Under Construction Assets PPA tied up1 1,200 Coal Source FSA (4.12 MTPA), rest IPT Kawai Total MW 1,600 Total MW 4,620 Godda PPA tied up 1,600 PPA tied up1 2,624 Mundra Coal Source Imported FSA (6.41
Slide 14: At A Glance – Historical Operating Performance
At A Glance – Historical Operating Performance PLF % 70% 76% 70% 64% 69% 55% FY15 FY16 FY17 FY18 FY19 H1FY20 Generation (BU) 69.39 64.17 54.67 58.47 50.82 32.46 FY15 FY16 FY17 FY18 FY19 H1FY20 13
Slide 15: At A Glance – Historical Financial Performance
At A Glance – Historical Financial Performance Revenue (Rs Crore) 25,734 26,362 23,034 21,093 19,065 14,830 FY15 FY16 FY17 FY18 FY19 H1FY20 EBITDA (Rs Crore) 9,004 7,431 6,391 6,190 5,401 5,142 FY15 FY16 FY17 FY18 FY19 H1FY20 14
Slide 16: Key Capabilities
03 Key Capabilities STRICTLY CONFIDENTIAL
Slide 17: Key Capabilities
Key Capabilities Combined experience of more than 30,000 man – years across verticals Constructed the then world’s largest single location coal based thermal power plant at Mundra Project 1 Commissioned India’s 1st thermal power unit based on super-critical technology Execution The above pro
Slide 18: Coal Handling and Logistics Capability
Coal Handling and Logistics Capability Summary Plant and Mine Locations Only IPP in India to have in-house coal logistics capability (mine to plant) > 4,000 man-years of experience in coal logistics Largest customer of Indian Railways after NTPC Approx. 5,000 rakes loaded annually, peak capa
Slide 19: Acquisition and Turnaround Experience
Acquisition and Turnaround Experience Case Study - Udupi Thermal Power Plant – 1,200 MW (2 x 600 MW) imported coal based power plant in Udupi District, Karnataka – Acquired by APL in April 2015 from Lanco Infratech Limited – First project in India utilizing 100% imported coal as fuel – First acquisi
Slide 20: Recent Awards & Recognitions
Recent Awards & Recognitions Sword of Honor 2019 conferred by Adani Power Rajasthan Limited (APRL) British Safety Council (BSC) for Excellent safety standards (October 2019) Udupi Power Corporation Limited (UPCL) Platinum Prize 8th FICCI Safety Systems Excellence Awards in Power category of the Manu
Slide 21: ESG practices
04 ESG practices STRICTLY CONFIDENTIAL
Slide 22: Environment, Health and Safety Practices
Environment, Health and Safety Practices As India’s largest private power producer, we acknowledge our responsibility in achieving sustainable growth and creating value for our stakeholders. Annual publication of Sustainability Report, covering comprehensive Increasing Fly Ash Utilization ESG perf
Slide 23: Social Practices
Social Practices APL has undertaken several social activities in the field of GYANODAYA Project Scholarship Distribution education, health, etc. benefiting the society and country at large > 300 infrastructure projects like road construction, classroom construction, construction of toilets, repa
Slide 24: Strong Corporate Governance
Strong Corporate Governance Audit Committee Nomination & Remuneration Committee 3 member committee - consisting of 2 independent directors 3 member committee - consisting of 2 independent directors Oversight of the company’s financial reporting process and the Formulation of the criteria for
Slide 25: Power Sector Overview
05 Power Sector Overview STRICTLY CONFIDENTIAL
Slide 26: India Power Sector: Strong demand potential
India Power Sector: Strong demand potential Significant potential for growth of power in India Power Demand is poised to accelerate Per Capita Consumption (kWh) Billion Units 12,962 4,240 2,047 3,927 3,030 1,566 2,578 1,143 1,181 937 India Brazil World China South Africa USA FY12 FY17 FY22E FY27E Ba
Slide 27: Significant Reforms in Recent Years
Significant Reforms in Recent Years • UDAY Scheme (UDAY 2.0 in the pipeline) • SAUBHAGYA Scheme Distribution • Pilot Scheme for procurement of 2500 MW • Payment Security Mechanism • SHAKTI Policy • Emphasis on production growth Coal • Coal Link Rationalisation • Rationalisation of Coal Escalation In
Slide 28: Regulatory Assets
06 Regulatory Assets STRICTLY CONFIDENTIAL
Slide 29: Change in Law Compensation: The Principle
Change in Law Compensation: The Principle Hon’ble Supreme Court Order on Compensation for High Coal Import Prices (Energy Watchdog Judgement) Negative: Positive: Neither Indian Change in Law, nor Any shortfall in domestic coal availability due to change in policy should be Force Majeure compensated
Slide 30: Mundra Power Plant: Regulatory Events
Mundra Power Plant: Regulatory Events o HPC recommendation was based on sacrifices by all the stakeholders ensuring Public interest is protected while implementing solutions for viable and sustainable operations o Procurers: Pass through of imported coal cost based on HBA ceiling of USD 110/MT to be
Slide 31: Quarterly Financial Updates
07 Quarterly Financial Updates STRICTLY CONFIDENTIAL
Slide 32: Q2 FY 2019-20: Key Highlights
Q2 FY 2019-20: Key Highlights Operational: Operating Q2 Q2 H1 H1 • Mundra: Phase III capacity (1,320 MW) utilized for performance* FY20 FY19 FY20 FY19 supplying power in merchant market Declared 79% 77% 84% 59% • Tiroda: Running on 100% domestic coal Capacity (%) • Kawai and Udupi: Lower grid demand
Slide 33: Q2 FY 2019-20: Revenue Mix
Q2 FY 2019-20: Revenue Mix INR Crores Q2 FY19 Q2 FY20 292 394 Consolidated Revenues* 736 1130 2885 1634 3108 Rs. 7,657 Cr 11% Rs. 6,815 Cr 3404 1871 APMuL APML APRL UPCL REL APMuL APML APRL UPCL REL Q2 FY19 1007 Q2 FY20 1969 Power Sales (Mn units) 14,596 MUs 7% 13,605 MUs 13589 11636 PPA Merchant/Me
Slide 34: H1 FY 2019-20: Revenue Mix
H1 FY 2019-20: Revenue Mix INR Crores H1 FY19 H1 FY20 292 1733 Consolidated Revenues* 1567 3660 1933 2574 7367 Rs. 11,617 Cr 28% Rs. 14,830 Cr 4153 5300 APMuL APML APRL UPCL REL APMuL APML APRL UPCL REL H1 FY19 1242 H1 FY20 2702 Power Sales (Mn units) 22,771 MUs 32% 30,122 MUs 21529 27420 PPA Mercha
Slide 35: Q2/H1 FY 2019-20: EBITDA Mix
Q2/H1 FY 2019-20: EBITDA Mix INR Crores Q2 FY19 Q2 FY20 2 57 273 Consolidated EBITDA* 244 323 401 475 Rs. 2,806 Cr 20% Rs. 2,248 Cr 2007 1181 APMuL APML APRL UPCL REL APMuL APML APRL UPCL REL H1 FY19 H1 FY20 2 -125 Consolidated EBITDA* 566 899 1509 675 Rs. 4,095 Cr 26% Rs. 5,142 Cr 1607 2883 1096 AP
Slide 36: Q2 FY 2019-20: APL EBITDA Bridge (YoY)
Q2 FY 2019-20: APL EBITDA Bridge (YoY) INR Crores 61 192 161 292 31 2,806 227 2,248 1,068 Exceptional Income Q2FY19 Q2FY20 Change As part of Operating 1,561 (81) (1,642) revenue As part of Other 220 794 574 income Total 1,781 713 (1,068) EBITDA Q2 Revenue of Higher Lower Fuel Lower Other Lower other
Slide 37: Consolidated Profit and Loss statement (1/2)
Consolidated Profit and Loss statement (1/2) INR Crores Particulars Q2 FY20 Q2 FY19 % Change H1 FY20 H1 FY19 % Change Operating Revenue 5,916 7,104 -17% 13,720 10,857 26% Of which (38) 1,394 NM 543 1,436 -62% exceptional Other Income 900 553 63% 1,109 759 46% Of which 769 348 121% 865 348 149% excep
Slide 38: Consolidated Profit and Loss statement (2/2)
Consolidated Profit and Loss statement (2/2) INR Crores Particulars Q2 FY20 Q2 FY19 % Change H1 FY20 H1 FY19 % Change EBITDA 2,248 2,806 -20% 5,142 4,095 26% Depreciation 765 697 10% 1,455 1,377 6% Finance cost 1,326 1,407 -6% 2,648 2,769 -4% PBT 157 702 -78% 1,039 (51) -- Exceptional (Gain) / Loss
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet INR Crores Particulars As on 30th Sep, 2019 As on 31st Mar, 2019 Equity & Reserves 9,633 7,712 Long term borrowings incl. current maturities 43,285 39,906 Other Non-current liabilities 5,974 5,702 Short term borrowings 7,978 7,074 Trade payables 6,550 6,362 Other current l
Slide 40: Way Forward
08 Way Forward STRICTLY CONFIDENTIAL
Slide 41: Key Priorities
Key Priorities Areas of focus Regulatory Receipts Emission Integration Control Capex Profitable of Acquisitions and Sustainable Growth Operational PPA and Efficiency FSA tie ups 40
Slide 42: Appendix: Asset Details
Appendix Asset Details STRICTLY CONFIDENTIAL
Slide 43: Udupi Power Corporation Limited
Udupi Power Corporation Limited Project Overview Location Capacity (MW) 1,200 MW ( 2 units of 600 MW each) Acquired From Lanco Infratech Ltd in Apr 2015 Technology Sub - Critical Location / State Udupi District, Karnataka Status Operational – Unit 1 – 11-Nov-10 COD – Unit 2 – 19-Aug-12 Tot
Slide 44: Adani Power Maharashtra Limited
Adani Power Maharashtra Limited Project Overview Location Capacity (MW) 3,300 MW (5 units of 660 MW each) Technology Super - Critical Location / State Tiroda in District Gondia, Maharashtra Status Operational – Unit 1: 23-Sep-12 – Unit 2: 30-Mar-13 COD – Unit 3: 14-Jun-13 – Unit 4: 31-Mar-14
Slide 45: Adani Power Rajasthan Limited
Adani Power Rajasthan Limited Project Overview Location Capacity (MW) 1,320 MW (2 units of 660 MW each) Technology Supercritical Location / State Kawai Village, Baran District, Rajasthan Status Operational – Unit 1 – 31-May-13 COD – Unit 2 – 31-Dec-13 Project Cost INR 8,773 cr Equipment Boil
Slide 46: Adani Power (Mundra) Limited
Adani Power (Mundra) Limited Project Overview Location Capacity (MW) 4,620 MW (5 units of 660 MW and 4 units of 330 MW) Technology Super - Critical Location / State Mundra Taluka, Kutch District / Gujarat Status Operational – Phase 1 - Unit 1 (4-Aug-09), Unit 2 (20-Mar-10) – Phase 2 - Unit 3
Slide 47: Raipur Energen Limited
Raipur Energen Limited Asset Details Plant Location Capacity (MW) 1,370 MW (2 units of 685 MW each) Acquired from GMR Group in Aug 2019 Technology Supercritical Plant location: Location / State Raikheda, Raipur district, Chhattisgarh Raikheda village, Raipur district, Chhattisgarh Status O
Slide 48: Raigarh Energy Generation Limited
Raigarh Energy Generation Limited Asset Details Plant Location Capacity (MW) 600 MW (1 unit of 600 MW) Lenders under IBC debt resolution process Plant location: Acquired from (NCLT) Near Villages Chote Bhandar, Technology Sub critical Bade Bhandar, Sarvani & Location / State Chhattisgarh Ama
Slide 49: Adani Power (Jharkhand) Limited
Adani Power (Jharkhand) Limited Project Overview Location Capacity (MW) 1,600 MW ( 2 units of 800 MW each) Technology Ultra Super-Critical Technology Location / State Godda District, Jharkhand Status Under Construction Unit 1 – Dec-2021 Expected COD Unit 2 – Apr-2022 Project Cost INR 1
Slide 50: Godda Project Highlights
Godda Project Highlights Estimated Project Cost Among India’s first Ultra- USD 2 Billion supercritical Units Growing demand for 8th largest population Growing market power, resource 41st largest economy with power constraints 7% GDP growth rate deficits 2 x 800MW Ultra- Lower emissions, Supercritica
Slide 51: Mundra (4,620 MW) performance update
Mundra (4,620 MW) performance update INR Crores Historical Operating Performance Financial Performance 94% 87% 81% 75% 62% 54% 64% 59% Particulars Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 FY16 FY17 FY18 FY19 Revenues 3,108 2,885 7,367 3,660 Billed Availability PLF Of which (30) 251 563 260 Exceptional Operat
Slide 52: Tiroda (3,300 MW) performance update
Tiroda (3,300 MW) performance update INR Crores Historical Operating Performance Financial Performance 77% 69% 70% 61% 81% 75% 66% 61% Particulars Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 FY16 FY17 FY18 FY19 Revenues 1,871 3,404 4,153 5,300 Billed Availability PLF Of which (80) 1,308 (53) 1,670 Exceptional O
Slide 53: Kawai (1,320 MW) performance update
Kawai (1,320 MW) performance update INR Crores Historical Operating Performance Financial Performance 87% 81% 72% 75% 76% 66% 48% 44% Particulars Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 FY16 FY17 FY18 FY19 Revenues 1,634 1,130 2,574 1,933 Billed Availability PLF Of which 824 173 880 356 Exceptional Operatin
Slide 54: Udupi (1,200 MW) performance update
Udupi (1,200 MW) performance update INR Crores Historical Operating Performance Financial Performance 86% 77% 85% 75% 92% 71% 59% 50% Particulars Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 FY16 FY17 FY18 FY19 Revenues 394 736 1,567 1,733 Billed Availability PLF Of which -- 48 395 102 Exceptional Operating Perf