Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q1 FY2022 Earnings Presentation
32 slides from Azure Power Global's earnings presentation, Aug 31, 2021
Slide 1: First Quarter Fiscal 2022 Earnings Presentation
~7 GW* Pan India Portfolio of Solar Assets India’s First Private Grid Connected MW Solar Plant India’s lowest cost Solar Green Bond First Quarter Fiscal 2022 Ended June 30, 2021 Earnings Presentation August 31, 2021 *~7 GWs include 4 GWs for which LOA has been received but 1|Copyright PPA has not ©
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: Q1 FY 2022 Key Developments
Q1 FY 2022 Key Developments 3|Copyright © 2021 Azure Power |www.azurepower.com
Slide 4: Key Highlights of Recent Developments
Key Highlights of Recent Developments Second Largest Solar Operational(2) Under Construction(2) Awarded(3) Portfolio in India(1) 2,102 MW AC 853 MW AC 4,000 MW 6,955 MW (2,672 MW DC) • ESG Highlights: • 99% eligible employees vaccinated • ESG score improved to “Low Risk” category by Sustainalytics;
Slide 5: Projects Under Construction Update
Projects Under Construction Update Assam Rajasthan Rajasthan 6 Rajasthan 8 Rajasthan 9 Assam - 90 MW 600 MW 300 MW 300 MW Revised 400MW - Done • 37.5 Q2 CY’21 MW - Done Q3(1) Q4(1) PPA COD 200 MW – Q3 27.5 MW - Q3 / 25 MW - Q4(2) Financing Document Completed 100% 100% Signed (3) Under Construction L
Slide 6: ESG Highlights
ESG Highlights Q1 Highlights ◼ Azure became signatory to UN Global Compact. ◼ World environment day celebrated with plantation of 1500+ tree saplings ◼ Avoided around 1 million tons of CO2 in current Quarter, 10.5 million ton equivalents since Environment inception. ◼ Projects registered under Verif
Slide 7: Industry and Regulatory Update
Industry and Regulatory Update • India achieves 100GW of installed Renewable Energy capacity in August 2021, making India the 4th largest globally. Additionally, 50 GW is under • MNRE grants additional 2.5 months blanket SCD extension to under- installation and 27 GW is under tendering. construction
Slide 8: Q1 FY 2022 Overview
Q1 FY 2022 Overview 8|Copyright © 2021 Azure Power |www.azurepower.com
Slide 9: Q1'22 Key Performance Metrics
Q1’22 Key Performance Metrics 2,052 MW* Operating 6,955 MW* Operating, US$ 0.52m Project US$ 57.3m Q1 Revenue(4) 23% increase(1) Contracted & Cost/MW (DC)(3) 13% increase Awarded(2) • 387 MW (560 MW DC) commissioned • 2,052 MW Operating • AC cost per MW US$ 0.53m for Q1 FY22 • US$ 50.6m for Q1 FY 21
Slide 10: Review of Q1 FY'22 Results
Review of Q1 FY’22 Results % Change Reported Adjusted Reported Reported 1Q FY’22 After Adjustments* adjusted Q1 FY’22 (in million) 1Q FY’21 1Q FY’21 1Q FY’22 1Q FY’22 Adjustments Comments US$ vs adjusted Q1 INR INR INR US$ US$ FY’21 Primarily driven by projects commissioned since Q1 Revenue 3,940 3,
Slide 11: Improved Overhead and DSO
Improved Overhead and DSO G&A Excluding Stock Compensation & Management Transition Accounts Receivable DSO Millions Days Excluding SAR, G&A increased by 5% for $24 1Q 22(1) 150 $22 $20 140 $18 $16 130 $14 $12 120 $10 $8 $6 110 DSO $4 $2 100 $0 -$2 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'2
Slide 12: Operating Assets Review: EBITDA, CFe, & Leverage
Operating Assets Review: EBITDA, CFe, & Leverage 12% growth in CFe from Operating Assets YoY(1) EBITDA from Operating CFe(1) from Operating Assets Assets (in US$ Mn) (in US$ Mn) $53.2 $24.8 +11% +12% Positive Drivers: $47.8 $21.9 Revenues: +$6.7 million 1Q'21 EBITDA 1Q'22 EBITDA 1Q'21 CFe 1Q'22 CFe
Slide 13: A Growing Balance Sheet
A Growing Balance Sheet As at March 31, As at June 30, 2021 2021 (in million) (in million) (3) INR INR US$ Cash, Cash Equivalents and Current Investments(1) 11,107 6,736 90.6 Property, Plant & Equipment, Net 108,847 115,023 1,547.5 Net Debt(2) 86,928 99,900 1,344.0 Hedging Asset (net) 5,488 7,867 10
Slide 14: Q2'22 and FY'22 Guidance
Q2’22 and FY’22 Guidance Q2’22 Guidance FY’22 Guidance Q2 FY’22 Revenue: INR 2,750 – 2,955(1) MW 3,600 – 3,800 million(1) Operating by March 31, Q2 FY’22 PLF: 20.5% - 21.5% 2022 INR 17,900 – 18,900 million(1) of Revenue for FY’22 _________________________ 1) Q2 FY’22 revenue guidance is US$ 49.0 - $
Slide 15: Long Term Outlook
Long Term Outlook MW Operational Guidance MW 7,000 Gross Margin(2,4), Cash Flow to Equity for 6,000 Operating Assets(3,4) and Debt Forecast 5,000 CAGR 24% US$ Millions 4,000 $350 3,000 CAGR 43% Gross Margin: $270 - $285 2,000 $300 Gross Margin: 1,000 $250 $198 - $218 - Gross Margin: IPO(a) FY'17(a)
Slide 16: Appendix
Appendix 16|Copyright © 2021 Azure Power |www.azurepower.com
Slide 17: Historical Plant Load Factor (PLF); Annual, Quarterly
Historical Plant Load Factor (PLF); Annual, Quarterly 25.0% 24.0% 23.7% Q1 F22 23.4% 23.0% 22.7% 22.3% 22.0% 21.5% 20.5% – 21.5% PLF 2Q FY’22 forecast Annual PLF 21.0% FY’21 20.9% FY'20 19.5% 20.0% FY'19 18.6% FY'18 18.2% 19.0% 17.7% 19.3% 18.0% 18.8% 17.0% 16.8% 16.0% 15.0% 1Q 2Q 3Q 4Q FY'20a FY'21
Slide 18: Historical Plant Load Factor (PLF); Green Bonds Performance
Historical Plant Load Factor (PLF); Green Bonds Performance PLF: Azure Power Energy Limited (RG1) PLF: Azure Power Solar Energy Private Limited (RG2) 22.0% 29.0% 26.4% Q1 F22 21.0% 27.4% 21.0% 27.0% 20.2% Q1 F22 26.3% 20.6% 25.5% 20.0% 20.1% 20.0% 25.0% 19.0% 23.0% 22.7% 21.0% 22.4% 18.0% 21.0% 17.3
Slide 19: DSO by Counterparty
DSO by Counterparty Amounts in US$ million On time/ Past due Net Within Past due up DSO Customer Name Capacity (MW) more than 365 Receivables grace to one year days (2) days period(1) 1,039 15.8 15.8 - - 63 SECI , NTPC, NVVN 50 12.7 1.2 5.6 5.9 646 Andhra Pradesh 250 22.3 5.5 9.9 6.9 261 Karnataka 3
Slide 20: 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 of
Slide 21: Reconciliation of Non-GAAP Measures to Comparable GAAP measures
Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended June 30, (in million) 2020 2021 2021 INR INR US$ Net Profit 46 697 9.6 Income tax expense/ (income) 317 (144) (1.9) Interest expense, net 2,163 2,249 30.2 Other expense 6 2 - Depreciation and amortization 755 819 11.0 Impa
Slide 22: 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 meas
Slide 23: Cash Flow to Equity (CFe)
Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ million) June 30, 2020 June 30, 2021 Operating Others Total Operating Others Total Sale of power 53.0 - 53.0 59.7 - 59.7 Cost of operations 3.5 - 3.5 4.6 - 4.6 General and administrative 1.7 3.3 5.0 1.9 3.8 5.7 Adjusted EBIT
Slide 24: 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 Nil, share based compensation of US$ 0.9 million and US$ 1.5 million, realized gain on investment of Nil and Nil, non-cash rent
Slide 25: Projects Commissioned - Utility
Projects Commissioned - Utility As on June 30, 2021 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in (MW) (MW) (INR/kWh) Date(1) 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
Slide 26: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As on June 30, 2021 Commercial PPA Duration DC Capacity Tariff Project Names Operation Capacity Off taker of PPA in (MW) (INR/kWh) Date(1) (MW) Years Operational – Utility Bihar 1 (3) Q3 2016 10 11 8.39 North & South Bihar Power Distribution Company Ltd 25 Punj
Slide 27: Under Construction Projects –Utility and C&I
Under Construction Projects –Utility and C&I As on June 30, 2021 Expected Commercial PPA Capacity Tariff Duration of PPA in Project Names Off taker Operation Date (1) (MW) (INR/kWh) Years Under Construction Assam 1#(3) Q1 2022 53 3.34 Assam Power Distribution Company 25 Rajasthan 6# Q4 2021 250 2.53
Slide 28: Debt Overview
Debt Overview As of June 30, 2021 Maturity Profile (1,2,3) $600 $487.4 $500 $375.0 US$ Millions $400 $321.4 $300 $200 $140.0 $89.6 $100 $33.8 $0 FY'22 FY'23 FY'24 FY'25 FY'26 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split INR Debt Foreign Debt Short Term Debt Long Term Debt 310.3 , C
Slide 29: Project Debt Schedule
Project Debt Schedule As of June 30, 2021 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project INR US$ (2) Under construction Rajasthan 6 16,139 217.1 Floating INR/US$ 2021-2040 Partly commissioned Andhra Pradesh 1 2,508 33.7 Fixed INR 2
Slide 30: Project Debt Schedule
Project Debt Schedule As of June 30, 2021 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project Under construction INR US$ (5) Punjab 3.1 and 3.2 1,219 16.4 Fixed INR 2024 Commissioned Chhattisgarh 1.1,1.2 & 1.3 1,192 16.0 Floating INR 20
Slide 31: 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 32: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 32|Copyright © 2021 Azure Power |www.azurepower.com