Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Investor Day (December 2019)
27 slides from Adani Energy Solutions's investor day presentation, December 2019
Slide 1: Adani Energy Day
Adani Transmission Limited Adani Energy Day December 2019
Slide 2: Table of Contents
Table of Contents A Introduction to Adani Group B Introduction to ATL and Growth Levers C Value Creation through Capital Management D ESG Showcase E ATL: A Compelling Investment Proposition ATL – Adani Energy Day 2019 2
Slide 3: A) Introduction to Adani Group
A) Introduction to Adani Group
Slide 4: Adani: Leading Infrastructure and Utility Portfolio
Adani: Leading Infrastructure and Utility Portfolio Transport & Logistics Portfolio Utility & Power Portfolio 62.3% 100% 100% 75% 75% 75% 75%* Adani Adani Adani Green Adani Gas APSEZ AAPT SRPCL Transmission Power (AGEL) (AGL) (ATL) (APL) Port & Port Rail 75% Transmission & IPP Renewables Gas Logisti
Slide 5: Adani: Repeatable, Robust and Proven business model
Adani: Repeatable, Robust and Proven business model Phase Development Operations Post operations Origination Site Construction O&M and Capital development technology management Return based Resource Template based RONC based Reduction of disciplined assessment design analytics and cost of
Slide 6: …Applied Consistently to Drive Value
…Applied Consistently to Drive Value Key Business Model Successfully Applied Across Infrastructure and Utility Platform Attributes Development at scale and within time and budget India’s Largest Longest Private HVDC Largest Private integrated 648 MW Ultra Mega Largest Single Location Commercial Port
Slide 7: B) Introduction to ATL and Growth Levers
B) Introduction to ATL and Growth Levers
Slide 8: ATL manifests Adani’s Infrastructure Excellence in T&D business
ATL manifests Adani’s Infrastructure Excellence in T&D business… Execution Strength and 3 million+ Pan India Presence AEML - One of the best-run 93-year 765 KV, 400 KV, 220 KV EHT Retail Electricity Households old integrated utility catering to AC Pan-India network & only gateway city of Mumbai priv
Slide 9: …Repeatable, Robust and Consumer-centric Business Model…
…Repeatable, Robust and Consumer-centric Business Model… Phase Development Consumer-centric Operations Origination Construction O&M and Consumer Capital Mgmt Technology Engagement • Return based • In-house tailor- • Time-bound • Reduction of cost • Remote operation of disciplined bidding made design
Slide 10: …Delivered ~2.5x EBITDA Growth over 3.5 years
…Delivered ~2.5x EBITDA Growth over 3.5 years A platform well-positioned to leverage growth opportunities in the market ATL’s “Grid-to-Switch” Integrated Platform Transmission Line Distribution Households (Ckt kms) 3 mn+ 3 mn+ 14,738 13,562 Ckt kms 8,600 Ckt kms 5,050 5,450 Ckt kms Ckt kms Ckt kms F
Slide 11: ATL: Growth through TBCB pipeline
ATL: Growth through TBCB pipeline Fully Transmission: ROA and TBCB Assets No. of COD/ operational Project cost projects SCOD tariff (Rs. bn) Transmission Asset Base (Rs. Billion)2 (Rs. bn)1 ROA TBCB 250 224 200 COD: 163 Operating ROA 4 Aug’12- 19.0 108 2.1x 116 projects 150 Assets Mar’15 55 100 50 1
Slide 12: AEML: Utility Business Growth
AEML: Utility Business Growth AEML regulated growth opportunities Capex Schedule (Rs. bn) Regulated Asset Base (Rs. bn) Average Billing Rate (ABR) – Rs. /unit1 Project Capex Regulatory Equity Regulatory Debt Nominal ABR Real ABR Replacement & Maintenance capex 105.0 95.7 86.8 16.6 17.5 81.1 15.7 16.
Slide 13: C) Value Creation through Capital Management
C) Value Creation through Capital Management
Slide 14: ATL: Value Creation through capital management
ATL: Value Creation through capital management Capital management philosophy Leading to prudently levered structure Raising project finance debt for under-construction assets from Indian / Foreign banks on non-recourse basis Total debt RAB Rs. 258 bn Rs. 309 bn Refinancing of operating project debt
Slide 15: Case Study 1: ATL Obligor Group US$ Bonds
Case Study 1: ATL Obligor Group US$ Bonds Extinguished capital refinancing risk by long-term US$500mn 4.25% 16.5yr Amortizing Senior Secured Bond issued in November 2019 Annual Debt Obligation (Incl. Interest and Maturity Profile Repayments) (Rs. Bn) Pre-bond (Rs. Bn) 12.0 11.2 11.0 10.8 10.6 10.4 1
Slide 16: Case Study 2: Leveraging Group’s Infra Philosophy
Case Study 2: Leveraging Group’s Infra Philosophy – Execution, O&M and Capital Management to create immense shareholder value Fully funded Value Creation by Capital Management releasing Equity for Growth Commanding Higher Multiples Phase Development Operations Capital Mgmt. • Original Est. • Origina
Slide 17: D) ESG Showcase
adani Transmission D) ESG Showcase
Slide 18: ATL ESG Philosophy
ATL ESG Philosophy Reduction of carbon footprint Increase in Renewable procurement for the distribution business to be compliant with the Paris Accord at company level and also promotion of Roof Top Solar Rooftop Solar power of 1.83 MW for aux consumption at all substations of ATL Resource M
Slide 19: ATL – Environment awareness and initiatives
ATL – Environment awareness and initiatives ATL recognizes that below environment related factors have major impact on its business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Management Waste Management Technology Driven :
Slide 20: AEML Dahanu Plant Case Study
AEML Dahanu Plant Case Study Climate management system amongst the best in the country Dahanu TPP is amongst the most environmentally friendly plants in India Particulate Matter (mg / Nm3) SOx Emissions (mg / Nm3) >100% fly ash utilization 100 2000 44 22.5 30 50 50 600 105 160 100 200 Amongst the ta
Slide 21: AEML to be Cop 21 compliant DISCOM by 2022
AEML to be Cop 21 compliant DISCOM by 2022 AEML to procure 30% of power from renewable power sources, change implemented within a year of acquisition 12x growth in Current renewable power Presently, renewable energy sources contribute ~280 procurement MUs of power procurement mix of AEML (~ 3% of
Slide 22: Adani Transmission – Serving Community and bettering lives
Adani Transmission – Serving Community and bettering lives Education Community Related ATL in association with Adani Foundation Supplementary livelihood opportunity to has been providing quality education to the fisherfolk community underprivileged community Creation of self help groups for wo
Slide 23: ATL’s Governance – Journey so far and future glide path
ATL’s Governance – Journey so far and future glide path We have charted a glide path to internalise global best practices of governance by September 2021 JOURNEY SO FAR TARGET BY SEP 2021 CORPORATE BEHAVIOUR Structure for 8 SPVs including AEML, with no cross securities nor cross guarantees All trans
Slide 24: ATL Case Study
ATL Case Study Internal Audit enabling corporate assurance Depending on the quarters, audit tests are conducted on different parameters (out of total 15) In Q2FY20, audit test performed for effectiveness of internal controls on the following parameters • Operations • Plant Maintenance • Inventor
Slide 25: E) ATL: A Compelling Investment Proposition
E) ATL: A Compelling Investment Proposition
Slide 26: ATL: A Compelling Investment Proposition
ATL: A Compelling Investment Proposition Financing Competitiveness; Growth Internal Accruals Led Growth Mature Business Integration of In-Organic Delivering Ventures Shareholder Value Strong Cash Flow and Risk Management Accretive Value Capabilities Creation Performance Advanced Technology ATL – Ada
Slide 27: Thank You
adar Goodness Thank You