Azure Power Global Limited · OTC:AZREF
Azure Power Global — Investor Presentation (January 2020)
22 slides from Azure Power Global's investor presentation, January 2020
Slide 1: Investor Briefing
Investor Briefing January 2020
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 3: Azure Power Well Positioned
Azure Power Well Positioned Portfolio is well positioned with returns above our cost of capital. Present Value of Equity Recent 4 GW win (elected to exercise 2 GW greenshoe option but awaiting (No value added for future growth, cost reductions or platform) LOA) provides certainty and clarity for 5.5
Slide 4: 7,115 MW Committed Portfolio
7,115(1) MW Committed Portfolio ~90% (2) in High Irradiation Zone ~6%(2) in Mid Irradiation Zone Focus on Strong Counterparty Credit Punjab (214 MW) 214 MW Rajasthan (3,675 MW) 475 MW Uttar Pradesh (100 MW) 100 MW 3,200 MW BBB- & above Gujarat (270 MW) Bihar (10 MW) 95% ~95% of the portfolio is 10 M
Slide 5: Recent 4 GW Project Win Overview
Recent 4 GW Project Win Overview(1) Project Overview Added Benefits of Project Letter of Award received for a total of 2 Federal Counterparty – SECI (AA+ domestic GWs of solar power projects and 500 MW debt rating and owned by Gov’t of India) of manufacturing facility of cells & Waiver on interstate
Slide 6: Recent 4 GW Project Win Is Value Accretive
Recent 4 GW Project Win Is Value Accretive Tariff ~15% Present Value of Equity for 4 GW Win higher than Potential of $1,000 PV of Equity Value similar SECI Opportunity $800 around 6.0x (USD Mn) central grid for 20%+ EV/EBITDA $600 connected equity IRRs $400 auctions we build cost $200 have won $- 10
Slide 7: 4 GW Project Timeline
4 GW(1) Project Timeline BG: US$28 Mn(1, 2) (INR 2,000 Mn) Success Charge: US $5 Mn (1,2) SCOD 1,000 MW (III) SCOD 1,000 MW (IV) SCOD 1,000 MW (I) SCOD 1,000 MW (II) (INR 378 Mn) LoA 5.5 months 2020 2021 2022 2023 2024 2025 6 Months 12 - 18 Months 30 Months 42 Months 54 Months 66 Months Expected Man
Slide 8: Significant Experience Delivering and Operating Projects
Significant Experience Delivering and Operating Projects Azure’s Integrated Approach Lowers Risk and Enhances Project Returns Returns Development Construction Operations Value engineering, design and procurement expertise ~1.8 GW (1) operational portfolio, one of the largest in the Strong trac
Slide 9: Solar Cell and Module Manufacturing
Solar Cell and Module Manufacturing We are NOT entering into manufacturing Partnered with Waaree Energies for 500 MWs and closed discussions with another manufacturer for other 500 MWs Waaree Manufacturing Facility Manufacturing partners have equity readily available and current construction plans T
Slide 10: Long Term Financial Forecasts
Long Term Financial Forecasts Significant Growth in EBITDA Low Build Cost and High Tariff and Cash Flow from Committed Portfolio Enables Deleveraging During Growth EBITDA, FFO(1) and Debt Forecast Debt to EBITDA Ratio(2) EBITDA: 10.0 x $700 $575 - $675 9.0 x $600 8.0 x $500 7.0 x 6.0 x $400 EBITDA:
Slide 11: Capex Forecast; Ready Access to Capital
Capex Forecast; Ready Access to Capital Capex Forecast(1) Ready Access to Capital $800 Project/Construction Finance $700 $600 $500 $400 $300 $200 $100 $- FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Cap Ex Sources of Equity (US$ millions) FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Rebalancing of portfolio Cap Ex $1
Slide 12: Access to Debt and Pursuing Lowest Cost of Capital
Access to Debt and Pursuing Lowest Cost of Capital – Debt Costs Creating Value by Lowering Debt Cost Azure Portfolio Average Interest Rate Raised over $2.4 bn of debt since inception 13% Low build cost and high tariff makes projects more financeable 12% High appetite with both domestic as well as fo
Slide 13: Cost Optimization to Create Additional Cash Flow and Competitive Advantage
Cost Optimization to Create Additional Cash Flow and Competitive Advantage Recent Initiatives Should Drive G&A Lower by Over 10% in FY’21 Operating Cost Savings Initiatives Restructuring – optimisation of employees and benefits Use of mutual funds and fixed deposits for better cash yield Introductio
Slide 14: Self Funded Post Completion of Portfolio
Self Funded Post Completion of Portfolio Self Funded Post Completion of Portfolio Once 7 GWs completed, we believe internal cash flow generation will self fund future growth without issuing more equity (market dependent) Potential uses of free cash flow including growth, dividends and/or share buyba
Slide 15: World Class ESG Standards Are Core To Our Business
World Class ESG Standards Are Core To Our Business Environment Social Governance Environment & Social Impact Enhance economies of remote communities we ISO 14001 & 9001 certified Assessment of all projects as per IFC PS. operate in, created 4,300+ local jobs Strong ABC and COBC implementatio
Slide 16: Appendix
WIZZ, Whue Power Appendix
Slide 17: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. The Company presents Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance
Slide 18: Projects Commissioned - Utility
Projects Commissioned - Utility As on January 12, 2020 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in Credit Rating(6) (MW) (MW) (INR/kWh) Date(1) Years Operational – Utility Punjab 1 (3) Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 AAA Punja
Slide 19: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As on January 12, 2020 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in Credit Ratings(5) (MW) (MW) (INR/kWh) Date(1) Years Operational – Utility North & South Bihar Power Distribution Bihar1 (4) Q3 2016 10 11 8.39
Slide 20: Under Construction Projects –Utility and C&I
Under Construction Projects –Utility and C&I As on January 12, 2020 Expected Duration PPA Capacity Tariff Credit Ratings(2) Project Names Commercial Off taker of PPA in (MW) (INR/kWh) Operation Date(1) Years Under Construction Assam 1 Q2 2020 90 3.34 Assam Power Distribution Company 25 B+ Total Unde
Slide 21: 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 year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and the rem
Slide 22: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship
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