Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Presentation (August 2018)
33 slides from Adani Green Energy's investor presentation, August 2018
Slide 1: Adani Green Energy Limited Investor Presentation
ADANI GREEN ENERGY LIMITED Investor Presentation August 2018
Slide 2: Confidentiality and Disclaimer
Confidentiality and Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growt
Slide 3: Adani Group Overview
ly ADANI GROUP OVERVIEW
Slide 4: Adani Group – Leading infrastructure conglomerate
Adani Group – Leading infrastructure conglomerate with large presence in Resources, Logistics and Energy sector ~US$25bn 23,200+ ~US$16bn ~US$ 18.0 bn Asset base1 Human Capital2 Revenues1 Market Capitalization3 Largest private player in India’s energy space with over 3 decades of experience Thermal
Slide 5: Repeatedly demonstrated strong execution skills and operational expertise
Repeatedly demonstrated strong execution skills and operational expertise Well established Deep know-how of relationship across Regulatory landscape energy ecosystem Geographic Spread – ability to handle land Timely execution of large acquisition across complex assets multiple cities & states Compet
Slide 6: Adani Green Energy Limited (AGEL) – At a glance
Adani Green Energy Limited (AGEL) – At a glance ~13,400cr Total Asset base 86% 11 100% Ownership of Number of states Contracted with ~Rs.10,925cr Adani promoters present in 25 years PPA Market Cap ^ Solar projects Wind projects Under- Operational implementation 60 MW 300 MW 6% 14% 2,198 MW Under- 99
Slide 7: Industry Overview
Industry Overview
Slide 8: Solar Power - Low resource risk and offtake risk
Solar Power - Low resource risk and offtake risk Solar generation is most predictable Lower variability between P90-P50 The Solar India ideal for commercializing solar Advantage Among the highest irradiations globally Proximity to Population, consumption 0.8 Solar Generation curve matche
Slide 9: Renewables – Significant Untapped Potential
Renewables – Significant Untapped Potential India has significant headroom for power consumption growth Renewables’ overall share in power capacity remains low Nuclear, 2.0% Per capita power consumption 2015(KWh) Hydro, 13.3% US: ~12x India 12,001 China: ~4x India Renewable, World: ~3x India 19.2% 6
Slide 10: Significant focus on Renewables, Declining Capital Costs Support Tariffs
Significant focus on Renewables, Declining Capital Costs Support Tariffs Large potential to further drive renewable capacity growth 175 GW Target of 2x share of electricity by Mar-22 Wind Solar Other renewables 15 Strong Pipeline: Plans to bid out ~9 GW in FY19 100 57 GW Utility scale solar ex
Slide 11: Adani Green Energy Limited (AGEL) Business Overview
Adani Green Energy Limited (AGEL) Business Overview
Slide 12: AGEL – Investment Highlights
AGEL – Investment Highlights Largest Utility Scale Solar Power player in India – 1 Strong track record of capacity addition Pan India Renewable Energy Player with healthy mix 2 across Wind and Solar with focus on returns Well diversified portfolio - 56% of the portfolio 3 contracted with investment
Slide 13: Largest Utility Scale Solar Power player in India
Largest Utility Scale Solar Power player in India Strong track record of capacity addition AGEL on track to achieve ~3.2GW capacity by 2020 ~0.3GW ~0.8GW ~2GW ~2.2GW ~3.2GW ~2x Capacity (MW) India’s largest single axis 997 tracker-based Solar PV project of 100MW is commissioned at Bathinda, Punjab ~
Slide 14: Pan India Renewable Energy Player with healthy mix across Wind and Solar
Pan India Renewable Energy Player with healthy mix across Wind and Solar Overview of Wind and Solar capacity (MW) Capacity Split by Type (MW) Punjab Wind 100 Uttar Pradesh 997 50 50 Rajasthan 250 20 Solar Gujarat Madhya Pradesh 2,198 937 48 12 Total Capacity 3,195 MW Chhattisgarh 100 Capacity Split
Slide 15: Well diversified portfolio
Well diversified portfolio 56% of the portfolio contracted with investment grade central utilities Total Capacity 3,195 MW Geography Off-takers Chattisgarh 3% Telangana Uttar Pradesh 3% 3% NTPC 12% Gujarat SECI Punjab 30% 44% 3% Others 3% Rajasthan 9% State Discoms 44% Karnataka 25% Tamil Nadu 20%
Slide 16: Superior Rated Off-takers reduces Counter Party Risk
Superior Rated Off-takers reduces Counter Party Risk AAA NTPC More than 55% counterparties are SECI AA CPSU’s with AA+ rating or above Gujarat SEB A BBB BB Punjab SEB Karnataka SEB B Maharashtra SEB Uttar Pradesh SEB Tamil Nadu SEB CCC Receivable days improved from 8 months in FY17 to 4 CC months in
Slide 17: Robust operational expertise and project execution capabilities
Robust operational expertise and project execution capabilities Identifying strategic land near substation to reduce cost of transmission line Land Acquisition Leverage group experience and capabilities for land acquisition & permissions Strong In-house design team with vast project execution
Slide 18: Robust operational expertise and project execution capabilities
Robust operational expertise and project execution capabilities Remote Operations & Nerve Cluster Project Centre (RONC) HQ monitoring of Performance Cluster based Each site Monitoring Analysis, Data Analytics and SME’s operating model to typically has a Strategy ensure support and site head
Slide 19: AGEL – Differentiated Quality and Return Focus
AGEL – Differentiated Quality and Return Focus Bidding Design Sourcing Execution O&M Stable Capacity Utilisation Factor (“CUF”) Performance ratio Solar irradiation Plant design & Site selection O&M sourcing Deep know-how Well established SolarGIS Sites with strong Efficient plant Real time o
Slide 20: Focus on sustainable performance - Punjab MW project
Focus on sustainable performance - Punjab 100 MW project GTI % GTI Actual 101.6 Solar GIS P50 achievement Solar irradiation (kWh/m2/year) 1,935 (kWh/m2/year) 1,965 (actual/target) % Stable Capacity Utilisation Factor (“CUF”) Grid availability Plant availability P75 99.9% P75 99.9% Site Target Target
Slide 21: Strong sponsor & professional management with strong execution track-record
Strong sponsor & professional management with strong execution track-record Sponsorship Gautam Adani Rajesh Adani Founder & Chairman Founder & Director Adani Group Adani Group AGEL – Access to Group Capabilities Capital - Strong sponsor (promoter) support Long standing relationship with the proc
Slide 22: Operational and Financial Performance
Operational and Financial Performance
Slide 23: Robust Operating performance
Robust Operating performance Average Capacity (MW AC) CUF (%) [AC Basis] 1744 21.14% 22.35% 21.68% 18.55% 18.25% 858 648 648 668 29.81% 19.69% 16.36% 13.87% 13.53% 58 58 58 58 58 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Solar Wind Solar Wind Plant Availability (%) Volume
Slide 24: Resilient Financial Performance
Resilient Financial Performance Revenue (Rs Crs) EBIDTA (Rs Crs) & Margin (%) 1000 800 95% 868 671 93% 700 800 90% 600 87% 600 500 439 85% 502 472 403 400 400 300 80% 80% 200 200 75% 100 0 0 70% FY17 FY18 Q1 FY19 FY17 FY18 Q1 FY19 Cash PAT (Rs Crs) Improving Receivable Days (Months) 350 291 299 10 3
Slide 25: Growth Strategy
Growth Strategy
Slide 26: Solar Capacity Growth – India and Adani
Solar Capacity Growth – India and Adani India ~26 GW of live bids in near future 69022 57244 Live Bids 45924 Hybrid, 2500 21651 12444 Solar, 6870 6763 Manufacturing FY16 FY17 FY18 linked Gen, India - Solar India - RE 10000 • India Solar - CAGR of 79%, in last 2 years • India RE – CAGR of 23% in last
Slide 27: Prudent Bidding Strategy – Solar Bids
Prudent Bidding Strategy – Demonstrated Focus on Return Accretive Growth Avg. Tariff of Solar Bids won above the national average Demonstrated Track Record of Recent Wins India Adani 3.06 Solar Tenders Tariff State Capacity (H1 FY 19) (Rs./kwh) 1000MW – MSEDCL Any Where 2.71 200 2.75 2.68 SECI - 200
Slide 28: Prudent Bidding Strategy – Wind Bids
Prudent Bidding Strategy – Demonstrated Focus on Return Accretive Growth Avg. Tariff of Wind Bids won above the national average Demonstrated Track Record of Recent Wins Tariff Capacity Wind Tender State (Rs./kwh) (MW) 3.42 India Adani SECI – 1GW - Tranche 1 – 3.46 150 * Feb’17 2.54 2.56 2.51 2.51 S
Slide 29: AGEL – Delivering Shareholder Value
AGEL – Delivering Shareholder Value Stable Cash Long term PPAs with Strong off-takers – Predictable cash flows Flows Drive high and predictable generation (Solar - P50 Focus, Operational Wind – P75 Focus) Excellence Lower cost through preventive maintenance focus Growth and Leverage internal accrual
Slide 30: Additional Materials
Additional Materials
Slide 31: AGEL – Holding Structure
AGEL – Holding Structure Adani Public 86.58% Adani Green Energy Ltd. 13.42% MP Wind - 12 MW 100% 100% 100% 100% 100%* 100% 100% 100% NEW SPVs MSUPPL PDPL AGETNL AGEUPL PSEPL KSPPL AWEGPL 937 MW 250 MW 220 MW 216 MW 290 MW 420 MW 20 MW 48 MW Wind Solar Solar Solar Solar Solar Wind Wind Solar Punjab –
Slide 32: Adani Group: CSR Initiatives
Adani Group: CSR Initiatives Spread across 13 states in 20 locations of India reaching out to 5 lakh families in 1,450 villages Quality Education – Underprivileged & girl child, teacher training and Adani Vidyamandir Providing quality education to meritorious students from economically weaker sect
Slide 33: Thank You
Thank You
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