Azure Power Global Limited · OTC:AZREF

Azure Power Global — Q3 FY2022 Earnings Presentation

37 slides from Azure Power Global's earnings presentation, Feb 28, 2022

Slide 1: Third Quarter Fiscal 2022 Earnings Presentation
Third Quarter Fiscal 2022 ended December 31, 2021 Azure Power Earnings Presentation February 28, 2022 Over India’s first India’s India’s largest 7.4 GWs* private grid first solar owned and of pan India connected MW green bond operated solar portfolio solar plant issuance project *include ~1.5 GWs fo
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 4: Key Highlights
Committed & Portfolio Operating (1) Under Construction Awarded(2) 7,425 MW 2,633 MW 322 MW 4,470 MW Key Highlights ESG: Water Neutrality – net water consumption reduced from 122 ltr/MWh (2017-18) to 49 ltr/MWh (2020-21). Aim to be net water neutral by 2023 Carbon Neutrality - carbon neutral status m
Slide 5: Construction Update
Construction Update Rajasthan 6 Rajasthan 8 Rajasthan 9 Assam 600 MW 300 MW 300 MW 90 MW 250MW - Done 53 MW – Done 65MW - Done Commissioning 100% 50 MW - Q4(1) 247 MW - Q4(1) 25MW – Q4(2) Financing 100% 100% 100% 100% Land 100% 100% 93%(3) 100% Transmission 100% 100% 100% 100% PPA executed with Sche
Slide 6: ESG Highlights
ESG Highlights Q3 Highlights Reduced water consumption from 122 liter/MWh (2017-18) to 49 liter/MWh (2020-21). Aiming to be net water neutral by 2023 Carbon neutral status maintained since 2019, retired UN Certified Emission Reductions (CERs) to offset our Scope 1 and 2 emissions Sustainability goal
Slide 7: ESG Highlights
ESG Highlights Safety Score Card Items Weight YTD Target YTD Achieved Q3 YTD Score Zero Fatality 20% 0 0 0 100% Up to 0.475 L per million manhour worked 20% 0.475 0.24 0 100% 1,637 RIR (Safety observation) 20% 1200 1315 440 100% Close 79% NC + CAPA 15% 70% 68% 72% 96% 302 Internal Audit 15% 234 240
Slide 8: Industry and Regulatory Update
Industry and Regulatory Update India’s Union Budget FY22-23: Energy transition and action on climate to be one of the major priority area for Government. GIB matter: MNRE has filed an application with Hon’ble Supreme Court Additional INR 19,500 crore (~$2.61 Bn) allocated for the for modification of
Slide 9: Robust Fundamentals
Robust Fundamentals Strong Pipeline Strong Counterparty Long Term Contracts Lower Cost of Debt ❑ Large pipeline of 4.5 ❑ More than 90% of ❑ All projects, under ❑ Strong relationship and GW, mainly with the PPA are with long term 25 years* credibility with domestic SECI; PPA for 2.9 GW central govern
Slide 11: Key Performance Metrics (Q3'22 ending December 31, 2021)
Key Performance Metrics (Q3’22 ending December 31, 2021) US$ 60.2m Q3 US$ 581.2m Current 2,523 MW* Operating (1) 7,425 MW* Operating, US$ 0.46m Project Revenue#(4) Portfolio revenue 37% increase Contracted & Awarded(2) Cost/MW (DC)#(3) 27% increase run-rate#(5)  DC cost per MW US$ 0.42m  US$ 47.3m
Slide 12: Review of Q3 FY22 Results
Review of Q3 FY22 Results % Change Reported Adjusted Reported Reported 3Q FY’22 After Adjustments* adjusted Q3 FY’22 (in million) 3Q FY’21 3Q FY’21 3Q FY’22 3Q FY’22 Adjustments Comments US$ vs adjusted Q3 INR INR INR US$ US$ FY’21 Revenue 3,521 3,521 4,480 60.2 - 60.2 27% Primarily driven by projec
Slide 13: Improved Overhead and DSO
Improved Overhead and DSO G&A Excluding Stock Compensation & Management Transition Accounts Receivable DSO Days Millions 150 $24 $22 140 Share price decreased $20 from US$ 22.00 in Q2 $18 FY22 to US$ 18.15 in Q3 130 $16 FY22, resulting in reversal $14 of provision. 120 $12 $10 110 $8 DSO $6 100 $4 $
Slide 14: Operating Assets Review: EBITDA, CFe & Leverage
Operating Assets Review: EBITDA, CFe & Leverage EBITDA from Operating Assets CFe from Operating Assets Net Debt/LTM EBITDA for Operating Assets (in US$ Mn) (in US$ Mn) 6.7 6.6x 6.6 +27% $52.9 +58% $26.1 6.5 $41.6 6.4 $16.6 6.3 6.2x 6.2 6.1x 6.1 6.0 3Q'21 EBITDA 3Q'22 EBITDA 3Q'21 CFe 3Q'22 CFe Jun-2
Slide 15: Azure Power delivered 152% EBITDA growth in quarter ended December'21
Azure Power delivered 152% EBITDA growth in quarter ended December’21 Quarter Ended Nine Months Ended % Change December 31, December 31, % Change 9 months (in million) (in million) Q3 Dec’21 vs Q3 Dec’21 vs9 2020 2021 2021 2020 2021 2021 Dec’20 months Dec’20 INR INR# US$ INR INR# US$ Revenue(1) 3,52
Slide 16: Growing Balance Sheet
Growing Balance Sheet As at March 31, 2021 As at December 31, 2021 (in million) (in million) INR INR US$## Cash, Cash Equivalents 11,107 8,575 115.3 and Current Investments* Property, Plant & 108,847 132,072 1,775.3 Equipment, net Net Debt# 86,928 110,165 1,480.9 *Does not include Current and Non-Cu
Slide 17: Q4'22 and initial FY'23 Guidance
Q4’22 and initial FY’23 Guidance Q4’22 Guidance* FY’23 Guidance* Q4 FY’22 Revenue FY’23 Revenue INR 5,100 – 5,200 million INR 22,000 – 23,000 million (US$ 68 – 70 million) (US$ 295.7 – 309.2 million) Q4 FY’22 PLF 22.5% - 23.5% 2,855 – 2,955 MW operating by March 31, 2022 _________________________ Ex
Slide 18: Long Term Outlook
Long Term Outlook MW Operational Guidance Gross Margin(2,4), Cash Flow to Equity for MW 7,000 Operating Assets(3,4) and Debt Forecast 6,000 US$ Millions Gross 5,000 CAGR 32% $700 Margin: 4,000 $530 - $560 CAGR 43% $600 3,000 Gross 2,000 $500 Margin: Gross 1,000 $217 Margin: $400 - $230 - $250 FY'17(
Slide 20: Historical Plant Load Factor (PLF); Annual, Quarterly
Historical Plant Load Factor (PLF); Annual, Quarterly 25.0% 24.0% 23.7% 23.4% 23.0% 22.5% – 23.5% PLF 22.7% 4Q FY’22 forecast 22.3% 22.0% 21.5% Annual PLF 21.0% 20.2% FY’21 20.9% 20.0% 19.6% FY'20 19.5% FY'19 18.6% 19.0% FY'18 18.2% 17.7% 19.3% 18.0% 18.8% 17.0% 16.8% 16.0% 15.0% 1Q 2Q 3Q 4Q FY'20 F
Slide 21: Historical Plant Load Factor (PLF); Green Bonds Performance
Historical Plant Load Factor (PLF); Green Bonds Performance Azure Power Energy Limited (RG1)* Azure Power Solar Energy Private Limited (RG2) 22.0% 29.0% 26.4% Q1 F22 21.0% 27.4% 21.0% 27.0% 20.2% Q1 F22 20.6% 26.3% 25.5% 20.0% 20.1% 20.0% 25.0% 21.4% Q3 F22 21.0% Q2 F22 19.0% 23.0% 22.7% 21.0% 22.4%
Slide 22: DSO by Counterparty – Ground Mount (GM)
DSO by Counterparty – Ground Mount (GM) Amounts in US$ million Net On time/ Within Past due up Past due more DSO Customer Name Capacity (MW) Receivables grace period(1) to one year than 365 days days (2) SECI , NTPC, NVVN 1,489 13.6 13.6 - - 46 Andhra Pradesh(3) 50 14.0 1.0 5.5 7.5 726 Karnataka(4)
Slide 23: 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 o
Slide 24: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended December 31, Nine Months Ended December 31, (in million) (in million) 2020 2021 2021 2020 2021 2021 INR INR US$ INR INR US$ Net Loss (1,088) (610) (8.2) (1,410) (213) (2.9) Income tax expense/(benefit)# (150) 848 11.4 70 1
Slide 25: 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 mea
Slide 26: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ million) December 31, 2020 December 31, 2021 Operating Others Total Operating Others Total Sale of power 47.3 - 47.3 60.2 - 60.2 Cost of operations 4.1 - 4.1 5.2 - 5.2 General and administrative 1.6 20.6 22.2 2.1 - 2.1 Impai
Slide 27: Cash Flow to Equity (CFe) – Contd.
Cash Flow to Equity (CFe) – Contd. 1. Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.1 million and US$ 0.1 million, share based compensation of US$ 17.9 million and US$ (2.4) million, non-cash rent expense of US$ 1.4 million and
Slide 28: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For nine months ended For nine months ended (US $ million) December 31, 2020 December 31, 2021 Operating Others Total Operating Others Total Sale of power 147.4 - 147.4 178.9 - 178.9 Cost of operations 11.8 - 11.8 14.6 - 14.6 General and administrative 5.9 33.1 39.0 6.7 5.8
Slide 29: Cash Flow to Equity (CFe) – Contd.
Cash Flow to Equity (CFe) – Contd. 1. Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.2 million and US$ 0.2 million, share based compensation of US$ 26.2 million and US$ (4.0) million, non-cash rent expense of US$ 1.8 million and
Slide 30: Projects Commissioned (As on date)
Projects Commissioned (As on date) Duration Commercial Operation PPA Capacity DC Capacity Tariff Project Names Off taker of PPA in Date(1) (MW) (MW) (INR/kWh) Years Operational – Utility Punjab 1 (3) Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Punjab 2.1 (3) Q3 2014 15 15 7.67 Punjab State
Slide 31: Projects Commissioned (As on date)
Projects Commissioned (As on date) Commercial Operation PPA Capacity DC Capacity Tariff Duration of PPA in Project Names Off taker Date(1) (MW) (MW) (INR/kWh) Years Operational – Utility Bihar 1 (3) Q3 2016 10 11 8.39 North & South Bihar Power Distribution Company Ltd 25 Punjab 4.1(3) Q4 2016 50 52
Slide 32: Projects Under Construction (As on date)
Projects Under Construction (As on date) Duration Expected Commercial PPA Capacity Tariff Project Names Off taker of PPA in Operation Date (1) (MW) (INR/kWh) Years Under Construction Assam 1# Q1 2022 25 3.34 Assam Power Distribution Company 25 Rajasthan 8# Q1 2022 50 2.58 Solar Energy Corporation of
Slide 33: Debt Overview (As on December 31, 2021)
Debt Overview (As on December 31, 2021) Maturity Profile (1,2,3) $600 $494.1 $500 $406.0 $375.9 $400 US$ Millions $300 $181.3 $200 $76.0 $69.1 $100 $0 CY'22 CY'23 CY'24 CY'25 CY'26 - 29 CY'30 & Beyond Debt Split by Currency LT vs ST Debt Split 464.3 , 29% $376.8 $1,225 , 24% 1,138.1 Consolidated Deb
Slide 34: Project Debt Schedule (As on December 31, 2021)
Project Debt Schedule (As on December 31, 2021) Outstanding Principal Amount (In millions) Type of Interest Currency Maturity (1) Name of Project Project Status INR US$ (2) Gujarat 2 9,188 123.5 Fixed INR 2024 Commissioned Maharashtra 3 5,238 70.4 Fixed INR 2024 Commissioned Karnataka 4 3,934 52.9 F
Slide 35: Project Debt Schedule (As on December 31, 2021)
Project Debt Schedule (As on December 31, 2021) Outstanding Principal Amount (In millions) Type of Interest Currency Maturity (1) Name of Project Project Status INR US$ (5) Rajasthan 8 8,705 117.0 Fixed US$ 2026 Partly commissioned Rajasthan 1 416 5.6 Fixed INR 2031 Commissioned Rajasthan 2 2,465 33
Slide 36: Glossary of Select Terms
Glossary of Select Terms Accelerated Depreciation – Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the fiscal year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and
Slide 37: To be the number one provider of sustainable energy solutions for a carbon-neutral world
To be the number one provider of sustainable energy solutions for a carbon-neutral world TRUST | INNOVATION | DRIVE | DIVERSITY | EXCELLENCE Copyright © 2022 Azure Power |www.azurepower.com 37

Azure Power — Q3 FY2022 Earnings Presentation on 6ix

Azure Power Global — Q3 FY2022 Earnings Presentation

Slide 1: Third Quarter Fiscal 2022 Earnings Presentation

Slide 2: Disclaimer

Slide 3: Key Highlights

Slide 4: Key Highlights

Slide 5: Construction Update

Slide 6: ESG Highlights

Slide 7: ESG Highlights

Slide 8: Industry and Regulatory Update

Slide 9: Robust Fundamentals

Slide 10: Q3 – FY2022 Overview

Slide 11: Key Performance Metrics (Q3'22 ending December 31, 2021)

Slide 12: Review of Q3 FY22 Results

Slide 13: Improved Overhead and DSO

Slide 14: Operating Assets Review: EBITDA, CFe & Leverage

Slide 15: Azure Power delivered 152% EBITDA growth in quarter ended December'21

Slide 16: Growing Balance Sheet

Slide 17: Q4'22 and initial FY'23 Guidance

Slide 18: Long Term Outlook

Slide 19: Appendix

Slide 20: Historical Plant Load Factor (PLF); Annual, Quarterly

Slide 21: Historical Plant Load Factor (PLF); Green Bonds Performance

Slide 22: DSO by Counterparty – Ground Mount (GM)

Slide 23: Use of Non-GAAP Financial Measures : EBITDA

Slide 24: Reconciliation of Non-GAAP Measures to Comparable GAAP measures

Slide 25: Use of Non-GAAP Financial Measures : Cash Flow to Equity (CFe)

Slide 26: Cash Flow to Equity (CFe)

Slide 27: Cash Flow to Equity (CFe) – Contd.

Slide 28: Cash Flow to Equity (CFe)

Slide 29: Cash Flow to Equity (CFe) – Contd.

Slide 30: Projects Commissioned (As on date)

Slide 31: Projects Commissioned (As on date)

Slide 32: Projects Under Construction (As on date)

Slide 33: Debt Overview (As on December 31, 2021)

Slide 34: Project Debt Schedule (As on December 31, 2021)

Slide 35: Project Debt Schedule (As on December 31, 2021)

Slide 36: Glossary of Select Terms

Slide 37: To be the number one provider of sustainable energy solutions for a carbon-neutral world