Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — BofA 2022 Asian Credit Conference
40 slides from Adani Energy Solutions's conference presentation, October 2022
Slide 1: Adani Transmission Limited Investor Presentation
Adani Transmission Limited Investor Presentation BofA 2022 Asian Credit Conference – October 2022
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio Overview 04 09-15 About ATL 09 ATL Business Philosophy, Capital 17-26 Mgmt and Investment Case 17 28-31 ESG Framework 28 Annexure – Profile, Capital Mgmt, Bonds, Ratings, Asset 33-38 Portfolio 33
Slide 3: Adani Portfolio Overview
Adani Portfolio Overview
Slide 4: Adani: A World Class Portfolio
Adani: A World Class Portfolio ~US$ 240 bn1 Combined Market Cap Infrastructure and Utility Primary Industry Emerging B2C Flagship Core Portfolio Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to Consumer Mining (60.5%) (63.2%) (72.3%) (73.9%) (66.0%) (100%) AGEL ATL APSEZ
Slide 5: Adani: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Transmission Network (ckm) Port Cargo Throughput (MMT) Renewable Capacity (GW) CGD7 (GAs8 covered) 18% 132% 12% 36% 1.4x 3x 25% 3x 5x 6% 4% 25% Industry Adani Industry Adani Industry Adani Adani Industry Adani 2016 320,000
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence planning str
Slide 7: A platform well-positioned to leverage growth opportunities in T&D business
ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Balanced pool mix Transmission Network of Transmission - Presence in 13 states Development with 31 transmission projects Transmission(3): 18,795 ckm(1) 52% of EBITDA - Central pool D
Slide 8: About ATL
About ATL
Slide 9: ATL: Business Snapshot
ATL: Business Snapshot Adani Family Public 73.9% Shareholders 26.1%(3) Contracted Assets in ROA Assets in Transmission and Distribution Business Transmission Business 100% QIA is a strategic partner in AEML with 25.1% stake 100% 100% 100% 74.9% 26 TBCB(1) Assets Transmission HVDC MUL Discom AEML Dis
Slide 10: AEML: Century old utility serving the Gateway city of India
AEML: Century old utility serving the “Gateway” city of India Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition in 2018 About Mumbai Annual Capex (US$ mn) RAB (US$ mn) ~11.0% Real GDP CAGR (FY12 – 18) ~6.0% of India’s real GDP 844 993 4th Most
Slide 11: Transformational Journey with Robust Growth and Credit Discipline
ATL: Transformational Journey with Robust Growth and Credit Discipline ATL has delivered an impressive 18.4% CAGR in EBITDA from FY16-22, while still demonstrating credit discipline and maintaining investment grade rating Operating portfolio of 4 Acquired Mumbai • Induction of QIA as • US$ 2 bn GMTN
Slide 12: Solid Locked-In Growth in both Transmission and Distribution
ATL: Solid Locked-In Growth in both Transmission and Distribution Transmission Project Pipeline (US$ mn) AEML Capex Schedule (US$ mn) Fully operational Project cost COD/ No. of projects tariff (US$ mn) SCOD(2,3) (US$ mn)(1) 305 284 Operating ROA COD: Aug’12- 255 Assets 4 projects 1,408 243 Mar’15 20
Slide 13: Size of Transmission Opportunity for Private Players is ~US$ 30 bn
ATL: Size of Transmission Opportunity for Private Players is ~US$ 30 bn worth projects over FY21-30 Renewable penetration to further boost requirement for transmission Attractive Industry Opportunity backed by strong policy support infrastructure strengthening – Mandatory competitive bidding introdu
Slide 14: Distribution Privatization Opportunity and Other Drivers
ATL: Distribution Privatization Opportunity and Other Drivers – Power distribution is one of the largest consumer facing sectors in the country. 96.7% of ~270 mn households in India are connected to the grid. – Discoms in India have been primarily owned and operated by state governments – Government
Slide 15: Attractive Industry Opportunity supported by Evolved and Stable Regulatory Regime
ATL: Attractive Industry Opportunity supported by an Evolved and Stable Regulatory Regime EA 2003 ROA Distribution TBCB (AEML) 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 Cost
Slide 16: ATL Business Philosophy
ATL Business Philosophy
Slide 17: Business Philosophy focusing on De-risking at every stage of project lifecycle
ATL: Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Complex projects experience: Completed HVDC project − Route alignment on topographic maps to optimize route & (~1000 kms) in a record time o
Slide 18: Execution Excellence, Operational Excellence
ATL: Technology enabled O&M Excellence Design and Technology Excellence Project Excellence O&M Excellence • In-house design team capable of designing • Completed HVDC project (~1,000 kms) • In-house team with vast O&M experience Execution Excellence towers using software tools like PLS Tower and wit
Slide 19: Shifting from Time-based Maintenance to Reliability Centered Maintenance
ATL: As a matured O&M player, shifting from Time-based Maintenance to Reliability Centered Maintenance Time-based Maintenance Preventive Maintenance Condition-based Reliability Centered (TBM) (PM) Maintenance (CBM) Maintenance (RCM) • Emergency restoration • SAP Integration for • Performing key test
Slide 20: AEML Business philosophy: Sustainability, Reliability and Consumer Focus
AEML Business philosophy: Sustainability, Reliability and Consumer Focus (Affordability & Responsiveness) Reliability Affordability & Responsiveness • Pioneer in adoption of advanced technologies • Consumer-centric service delivery model Emerging • Only utility with integrated GIS, WMS, OMS, CRM a
Slide 21: Demonstrated Capital Management Philosophy
ATL: Capital Management Philosophy to achieve growth at scale with capital discipline ATL is the only private sector transmission and distribution company in India with International IG Rating – Long life contracted assets with sovereign counterparties in a stable regulatory regime (Transmission: 35
Slide 22: Transformational Capital Management Plan in AEML resulting in value unlocking
ATL: Transformational Capital Management Plan in AEML resulting in value unlocking Capital structure Elongated maturity High quality stable Diversified and deep Fully funded long term consistent with reflecting perpetual nature cashflow profile to ensure investor base, to provide capex program under
Slide 23: Case Study: TBCB portfolio takeout through USPP
Case Study: TBCB portfolio takeout through USPP USPP: 30 years USD notes (USD 400 mn) issued by restricted group of 7 subsidiaries of ATL (2,084 ckm network) with fixed coupon and amortizing structure matching the concession period & revenue profile of the issuer companies Case study USPP: Fully fun
Slide 24: Transformation in Credit Quality
ATL: Transformation in Credit Quality Mar 2016 Mar 2022 RR EBIDTA (US$ mn) Net Debt / RR EBIDTA ATL Rating was Highest Rated Asset – Rating 1200 4.5x Global IG Domestic AAA 3.9x 4.0x 1000 3.5x RR EBITDA US$ 263 mn US$ 776 mn 3.0x 800 776 3.0x 2.5x 600 2.0x Net Debt US$ 790 mn US$ 3,040 mn 400 1.5x 2
Slide 25: Capital Management based Credit Philosophy
ATL: Capital Management based Credit Philosophy % Debt % RR EBIDTA Completely de-risked EBIDTA covering Debt maturity > 20 Years 16.66% 11.50% ~42% of the Project Life matching Debt & EBIDTA with rate risk > 20 Years 5.03% 4.77% Equity value is fully protected from any risk related to the No Tenor &
Slide 26: Compelling Investment Case
ATL: Compelling Investment Case − Significant growth opportunities in Transmission and Distribution with favourable government policy and strong T&D Favorable Industry infrastructure demand with increasing shift to renewable energy Landscape − Evolved and stable regulatory regime conducive for infra
Slide 27: ESG Framework
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ESG Framework 08
Slide 28: ESG Framework
ATL: ESG Framework United Nations GHG Protocol SBTi Global Compact Guiding IR framework Policies Guiding Principles and TCFD CDP disclosure principle reporting Disclosure Standards UN Sustainable GRI Standards Development Goals Policy Structure Focus Areas ESG • Environment Policy UNSDG aligned: E •
Slide 29: Key Environmental Indicators and Milestones
ATL: Key Environmental Indicators and Milestones Key Performance Indicators Current Status Baseline Medium to Long-term Targets Energy Mix & Emission Intensity - RE share in power procurement AEML has achieved 18% renewable in power mix as of Jun’22 3% 30% by FY23 60% by FY27 The target for GHG emis
Slide 30: Key Social Indicators and Milestones
ATL: Key Social Indicators and Milestones Target Material Categories Material Themes Key Performance Indicators Baseline (FY22-23) Zero Rate of fatalities per million hours worked Zero (FY 20-21) Work related injury Rate of recordable work-related injuries per million man-hours 0.33 Zero worked (FY
Slide 31: Key Governance Indicators and Milestones
ATL: Key Governance Indicators and Milestones Material Categories Material Themes Key Performance Indicators Baseline Actions Taken and Goals 16.6% - women Board Gender Balance the board composition in terms of men • % of women directors in board improved to Board Gender Diversity directors in board
Slide 32: List of Annexure
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission List of Annexure: – Profile – Capital Management – Bond Portfolio – Credit Ratings – Asset Portfolio 14
Slide 33: ATL at a glance
ATL at a glance ATSOL Other Assets AEML 7 TBCB Transmission Assets (Sec 63) TBCB 4 Operating • 9 TBCB Operating Assets Transmission assets US$ 1.3 Bn notes issued (Sec 62) (excluding USPP assets) US$ 0.4 Bn USPP issuance of 1000Mn; Tenure: 2030 30-year • 10 Under construction 300Mn; Tenure: 2031 400
Slide 34: Transmission Business at a glance
ATL: Transmission Business at a glance Operating Assets Under construction 17 Assets 9 Assets TBCB Assets (Sec 63) Assets base US$ 1.4 Bn Assets base US$ 1.5 Bn 4 Assets 1 Asset ROA Assets (Sec 62) Assets base US$ 1.4 Bn Asset base US$ 0.93 Bn TBCB - Business Parameters Return on Asset (ROA)
Slide 35: ATL and AEML Bond Portfolio
ATL and AEML Bond Portfolio Highlights Obligor 1 – US$ 500 mn Obligor 2 – US$ 500 mn USPP – US$ 400 mn AEML – US$1 bn AEML – US$ 300 mn STL, ATRL, CWRTL, RRWTL, Assets ATIL MEGPTCL AEML AEML, PDSL PPP-8,9,10 FY22 EBITDA (US$ mn) 297 86 274 274 Tenor 10 year 16.5 year 30 year 10 year 10 year Issue si
Slide 36: ATL and AEML Credit Ratings
ATL and AEML Credit Ratings International – ATL Obligor Group (Transmission business) SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable ATL India Ratings / Brickworks AA+ Stable S&P Dollar Bond BBB- ATL ICRA A1+ Stable MEG
Slide 37: ATL's Operational Asset Portfolio as of Q1FY23
ATL’s Operational Asset Portfolio as of Q1FY23 Adani Transmission Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% AEML MUL ATSCL & WTGL, PPP Bikaner Obra-C ATIL MEGPTCL ATBSPL APTL ATRL RRWTL CWRTL STL FBTL Khetri GTL Discom Discom MTSCL WTPL 8/9/10 Badaun
Slide 38: ATL's Under-construction Asset Portfolio as of Q1FY23
ATL‘s Under-construction Asset Portfolio as of Q1FY23 Adani Transmission Limited Since ATL’s evolution its Transmission Network (ckms) has grown 3.4x and expanded into 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Distribution businesses WRSS – Obra-C Lakadia MP Kharghar Jam Kham- NKTL Banas- WK
Slide 39: Legal Disclaimer
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 presentation is highly confidential and is being given solely fo
Slide 40: Thank You
adani Transmission adani Transmission Thank You -¢
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