Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Debt Investor Presentation (May 2020)
49 slides from Adani Energy Solutions's debt investor presentation, May 2020
Slide 1: Adani Transmission Limited Debt Presentation May 2020
Adani Transmission Limited Debt Presentation MAY 2020
Slide 2: Contents
CONTENTS Adani Group 04-07 09-12 ATL – Profile 14-19 ATL Credit Story ATL: Key Highlights and Objectives of Capital Management Program 14 ADANI: World class infrastructure ATL: Manifesting Adani’s Infrastructure & utility portfolio 04 Excellence in T&D business 09 Case Study: Development, O&M Effici
Slide 3: Adani Group
adani Transmission
Slide 4: Adani: World class infrastructure & utility portfolio
Adani Transmission Limited Debt Presentation | May 2020 Adani: World class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.3% 100% 75% 75% Philosophical shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Rene
Slide 5: Adani: Repeatable, robust & proven model to deliver RoE
Adani Transmission Limited Debt Presentation | May 2020 Adani: Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesig
Slide 6: Adani: Repeatable, robust business model applied consistently to drive value
Adani Transmission Limited Debt Presentation | May 2020 Adani: Repeatable, robust business model applied consistently to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Meg
Slide 7: ATL: A platform well-positioned to leverage growth opportunities in T&D business
Adani Transmission Limited Debt Presentation | May 2020 ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Transmission Network of ATL - Present in 9 states with 21 Transmission (FY20): Development 14,739 ckms1; tran
Slide 8: ATL – Profile
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ATL – Profile 14
Slide 9: ATL: Manifesting Adani's Infrastructure Excellence in T&D business
Adani Transmission Limited Debt Presentation | May 2020 ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution Strength and Pan Pan-India network & only private AEML - One of the best-run 3 million+ India Presence sector co. to operate 500 KV 93-year old integrated utility Reta
Slide 10: ATL at a Glance
Adani Transmission Limited Debt Presentation | May 2020 ATL at a Glance 100%1 Contracted Assets Integrated Utility 100% 74.9% 25.1% Qatar Investment Wholesale Consumer Authority (QIA) • 12 Operating TBCB Assets(1), 9 under construction TBCB Assets ROA Assets ROA Asset • Transmission network of 9,688
Slide 11: Contracted Assets at a Glance
Adani Transmission Limited Debt Presentation | May 2020 Contracted Assets at a Glance Contracted Assets Key Characteristics TBCB Fixed (Section 63) Tariff 35 years + Life Asset Life of Asset Asset Base Fully- Op. EBITDA No. of Assets built (US$ mn) FY20 (US$ mn) Counterparty Network Pool 20 1,919 11
Slide 12: Integrated Utility at a Glance
Adani Transmission Limited Debt Presentation | May 2020 Integrated Utility at a Glance Qatar Investment Wholesale Utility Consumer Utility Authority (QIA) Wholesale Utility - Key Characteristics Key Characteristics Return on Assets Consumer (ROA -Section 62) 3.04 million Counterparty Consumers base
Slide 13: Future Outlook – ATL Credit Story
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook ATL Credit Story 14
Slide 14: ATL: Key Highlights and Objectives of Capital Management Program
Adani Transmission Limited Debt Presentation | May 2020 ATL: Key Highlights and Objectives of Capital Management Program Development De-risking Capital Conservation • Significantly reduced green-field risk • Refinancing risk significantly minimized (mature asset operator) with debt maturity (>5 year
Slide 15: Case Study: Development, O&M Efficiencies and Capital Management
Adani Transmission Limited Debt Presentation | May 2020 Case Study: Development, O&M Efficiencies and Capital Management to create immense shareholder value Fully funded Value Creation by Capital Management releasing Equity for Growth Case study USPP: Future of ATL Capital Management Program Capital
Slide 16: AEML (Integrated Utility): Significant De-risking through Capital Management
Adani Transmission Limited Debt Presentation | May 2020 AEML (Integrated Utility): Significant De-risking through Capital Management Capital De-risking of Asset Underlying Value Creation AEML US$ 1 bn bond issue in Jan-20 QIA’s acquisition of 25.1% stake in AEML for Rs. 32 bn investment Key Attribut
Slide 17: ATL's Capital Management Program brings diversity and elongated maturity to debt profile
Adani Transmission Limited Debt Presentation | May 2020 ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile As of As of 31st Mar 16 31st Mar 20 Refinancing risk minimised1 Consolidated US$ 1,191 mn US$ 2,130 mn Net Debt US$ 44.8 mn of debt (<1 year) vs. FF
Slide 18: ATL: Debt Evolution and Key Ratios
Adani Transmission Limited Debt Presentation | May 2020 ATL: Debt Evolution and Key Ratios Net Debt(1) Debt composition1 Key Ratios (Rs. Bn) 9 46 Fully-hedged 4.7 debt 4.3 ECB 10% dollarization Loans/NCD 90% 3.3 US$ Bond 90% Loans/NCD 9% 172 2.1 2.3 152 ECB 1% 2.1 1.6 1.3 1.4 1.3 1.3 1.2 FY16 FY20 F
Slide 19: ATL: Reduced Development and Capex risk with High Credit Discipline and no Equity Dilution
Adani Transmission Limited Debt Presentation | May 2020 ATL: Reduced Development and Capex risk with High Credit Discipline and no Equity Dilution Self-funded contracted growth model with low capital risk FY16 FY20 Strict Credit Rating BBB-/Baa3 Covenant BBB-/Baa3 Significant Reduction in Greenfield
Slide 20: Update on Covid-19
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Update on Covid-19 14
Slide 21: ATL: Update on Covid-19, its impact on operations and key initiatives
Adani Transmission Limited Debt Presentation | May 2020 ATL: Update on Covid-19, its impact on operations and key initiatives • Power Transmission and Electricity Distribution is classified as an ‘essential service’ requiring all our operations to be fully-functional with minimum staff required. • A
Slide 22: ESG
Adani TransmissionLimited Adani Transmission Limited Debt Debt Presentation Presentation | May 22020 | February 020 Transmission ESG 08
Slide 23: ATL: ESG Performance
Adani Transmission Limited Debt Presentation | May 2020 ATL: ESG Performance 8 % ↓* 7.5 % ↓* 7.45 % * 1.835 MW Auxiliary Power Scope 1 Emission Solar Power Generation Solar Panel Consumption 3187008 TCo2e 2.73 MUs 346.53MUs 6.23 % ↓* 31.62 % ↓* 1.23 Million 195.4 Ha - Afforestation Trees planted Cum
Slide 24: ATL: Integrated ESG Framework for enhanced value creation
Adani Transmission Limited Debt Presentation | May 2020 ATL: Integrated ESG Framework for enhanced value creation Technological advancement for minimal downtime during maintenance better availability increased EBITDA TARGET BY SEP 2021 Renewable Power Procurement at below APPC tariff reduction for 1
Slide 25: ATL: Key ESG Metrics and Initiatives
Adani Transmission Limited Debt Presentation | May 2020 ATL: Key ESG Metrics and Initiatives CO2 emissions Water Waste Land use (AEML - Dahanu) Environment Scope 1 (TCO2e): Fresh Water (KL): 18,16,997 ~40 KL Waste generated of used ~148 hectares of green belt 31,87,008 oil Water recycled (KL): 2,04,
Slide 26: ATL: Environment awareness and Initiatives
Adani Transmission Limited Debt Presentation | May 2020 ATL: Environment awareness and Initiatives ATL recognizes that below environment related factors matter to our business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Managem
Slide 27: AEML: Initiatives towards reduction of carbon footprint
Adani Transmission Limited Debt Presentation | May 2020 AEML: Initiatives towards reduction of carbon footprint Renewable Power Climate Awareness Targeted 30% of consumption from Renewable sources Environmentally compliant generation at ADTPS Committed to increasing share of renewable power procurem
Slide 28: ATL: Governance – Journey so far and future glide path
Adani Transmission Limited Debt Presentation | May 2020 ATL: 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 Structure for 8 SPVs including AEML, with no cross securi
Slide 29: Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers
Adani Transmission Limited Debt Presentation | May 2020 Global Benchmarking: Adani Utility Portfolio vs. Global Utility peers ATL and Adani Utility portfolio fares in line or better on various metrics with global peers Utility Consumers (mn) EBITDA margin % (FY20/CY20 / Fully-built)* EV/EBITDA (1 ye
Slide 30: Global Benchmarking: Regulatory Framework
Adani Transmission Limited Debt Presentation | May 2020 Global Benchmarking: Regulatory Framework Regulatory return (ROA) framework for transmission players across geographies Key Highlights 14.0% Equity portion 12.0% doesn’t depreciate ATL’s rate of return will WACC/Rate of return 10.50% 10.0% norm
Slide 31: ATL: Compelling Investment Case
Adani Transmission Limited Debt Presentation | May 2020 ATL: Compelling Investment Case Why Invest in Adani Transmission? Stable & • Predictable cash flow with contracted and regulated business predictable cash- • Long term concession life (~35 years); ~52% sovereign-rated counterparties as of FY20
Slide 32: Annexure
Adani TransmissionLimited Adani Transmission Limited Debt Debt Presentation Presentation | May 22020 | February 020 Transmission Annexure 22
Slide 33: Adani: World-class Credit Portfolio Attracting Global Investors
Adani Transmission Limited Debt Presentation | May 2020 Adani: World-class Credit Portfolio Attracting Global Investors Size (USD Mn.) Coupon Price Current Yield* Energy & Utility Portfolio Company Issue date Issue Size (USD Mn.) Coupon Average Maturity DTDAverage DebtMaturity structure DTD Debt Rat
Slide 34: ATL: Capital Management Program Demonstrating Global Excellence
Adani Transmission Limited Debt Presentation | May 2020 ATL: Capital Management Program Demonstrating Global Excellence Highlights Obligor 1 Obligor 2 USPP AEML ATIL MEGPTCL STL, ATRL, CWRTL, RRWTL, AEML Asset PPP-8,9,10 FY20 Operational EBITDA (USD mn) 237 84 255 Tenor 10 year 16.5 year 30 year 10
Slide 35: ATL: Emulating Group's Core Infra Philosophy at every phase
Adani Transmission Limited Debt Presentation | May 2020 ATL: Emulating Group’s Core Infra Philosophy at every phase Development Operations Post Operations Phase Origination Construction O&M and Technology Consumer Engagement Capital Mgmt Return based disciplined In-house tailor-made Remote operation
Slide 36: ATL is rated Investment Grade from FY16 and beyond
Adani Transmission Limited Debt Presentation | May 2020 ATL is rated Investment Grade from FY16 and beyond International- Obligor Group SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable CARE, India Rating AA+ Stable ATL S&
Slide 37: Outlook
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Outlook 14
Slide 38: ATL: Outlook
Adani Transmission Limited Debt Presentation | May 2020 ATL: Outlook Economic Outlook Operations Outlook • No major deviation in relation to guidance given by ATL and AEML with regards to financial and operational performance • Situation expected to improve progressively from May onwards as lockdown
Slide 39: ATL: Key Focus Areas FY21 and Beyond
Adani Transmission Limited Debt Presentation | May 2020 ATL: Key Focus Areas FY21 and Beyond Liquidity Management Growth • Focus on maintaining adequate liquidity cover to swiftly mitigate ATL well placed to capture future growth through multiple current uncertainties and any unpredictable scenari
Slide 40: Regulatory Landscape
Adani TransmissionLimited Adani Transmission Limited Debt Debt Presentation Presentation | May 22020 | February 020 Transmission Regulatory Landscape 08
Slide 41: ATL: Regulatory Framework
Adani Transmission Limited Debt Presentation | May 2020 ATL: Regulatory Framework EA 2003 ROA AEML TBCB Growth Section 62 (ROA) Tariff Method - Multi Year (5 yr) Tariff Section 63 (TBCB) Tariff Method – License Period Basis Services O&M Power Procurement All other Costs Expenses Costs costs • Annual
Slide 42: ATL – Financial Highlights and Asset Portfolio
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ATL – Financial Highlights and Asset Portfolio 14
Slide 43: ATL: Revenue and EBITDA trend
Adani Transmission Limited Debt Presentation | May 2020 ATL: Revenue and EBITDA trend Operating Revenue performance Operating EBITDA performance Transmission Distribution 10,237 Transmission Distribution Margin 92% 24% 4,287 6,530(1) 91% 19% 7,532 1,805 2,857(1) 91% 3,944 806 4,270 1,944 2,482 3,944
Slide 44: ATL OG - Profit and Loss Summary
Adani Transmission Limited Debt Presentation | May 2020 ATL OG - Profit and Loss Summary Particulars (US$ mn) FY20 FY19 FY18 FY17 Revenue from Operations 281 264 451 311 Revenue from sale of 119 127 113 traded goods 121 Other Income 37 32 21 12 Finance Costs 112 106 126 139 Depreciation & Amortizati
Slide 45: ATL OG - Balance Sheet
Adani Transmission Limited Debt Presentation | May 2020 ATL OG - Balance Sheet Particulars (US$ mn) FY20 FY19 FY18 FY17 Tangible Assets 1,071 1,158 1,341 1,371 Long-Term Loans and Advances 20 23 19 17 Other Non-current Assets 797 884 699 87 Cash and Bank Balances 167 29 88 56 Other Current Assets 35
Slide 46: ATL's Evolution and Operational Portfolio
Adani Transmission Limited Debt Presentation | May 2020 ATL’s Evolution and Operational Portfolio ATL’s Transmission Network (ckt km) has grown 2.7x Adani Transmission Limited in 3 years; and Distribution business acquired in FY19 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% ATL’s “Grid-to-
Slide 47: ATL: Locked-in Growth from Under-construction TBCB Projects
Adani Transmission Limited Debt Presentation | May 2020 ATL: Locked-in Growth from Under-construction TBCB Projects Adani Transmission Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ghatam- Obra-C WRSS – Bikaner - Lakadia Kharghar NKTL Jam Kham- FBTL Banas- HVDC# pur Badaun XXI (A) Khetri
Slide 48: Thank You
adani Transmission Thank You -¢
Slide 49: Legal Disclaimer
Adani Transmission Limited Debt Presentation | May 2020 Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for information purposes only. This presenta
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