Adani Power Limited · NSE:ADANIPOWER
Adani Power — Investor Presentation (August 2023)
47 slides from Adani Power's investor presentation, Aug 21, 2023
Slide 1: Exchange filing cover letter for investor presentation
August 21, 2023 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 533096 Scrip Code: ADANIPOWER Dear Sir(s) Sub.: Presentation for interaction with Investors / Analy
Slide 2: Adani Power Limited Investor Presentation August 2023
Adani Power Limited Investor Presentation August 2023
Slide 3: Disclaimer
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 Power Limited (“APL”) and its subsidiaries , associates, and joint ventures (c
Slide 4: Table of Contents
Table of Contents 1 Adani Portfolio Overview 2 Adani Power Limited (APL) : Multifaceted Power Producer 3 APL : Secure Business Model 4a APL : Market Dynamics 4b APL : Key Differentiators For Long Term Success 5 APL : Financial Profile 6 APL : ESG Practice at APL 7 APL : Financial Outlook 8 APL : Com
Slide 5: Adani Portfolio Overview
01 Adani Portfolio Overview STRICTLY CONFIDENTIAL
Slide 6: Adani Portfolio: A World class infrastructure & utility portfolio
Adani Portfolio: A World class infrastructure & utility portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (67.7%) (53.4%) (68.3%) (62.9%) (100%) (63.2%) AGEL AESL APSE
Slide 7: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x Growth 4x EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x Growth 1.4x APSEZ AGEL ATGL EBITDA 91% 1,3,5 EBITDA 19% 1,3 Ad
Slide 8: Adani Portfolio: Repeatable, robust & proven transformative model of investment
Adani Portfolio: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Center of Excellence Project Management & Assurance Group AIMSL* Policy -Strategy - Risk Origination Site Development Construction Operation Capital Management Activity • Anal
Slide 9: Adani Power Limited (APL): Multifaceted Power Producer
02 Adani Power Limited (APL) : Multifaceted Power Producer STRICTLY CONFIDENTIAL
Slide 10: APL: Multifaceted power producer
APL: Multifaceted power producer Core Business Embedded Expertise Value Enhancement Emerging Opportunities Training and Vendor Power Generation Logistics Waste Management Development Solid fuel and fly ash: High quality manpower India’s largest private Value creation out of Sourcing and disposal dev
Slide 11: APL: Highly efficient fleet with lower emissions
APL: Highly efficient fleet with lower emissions Technology mix – Thermal (%) Thermal Generation Capacity MW 26% 30% Core (existing plants) 15,210 Brownfield projects (Under development) 44% Ultra-supercritical Supercritical Sub-critical -- Committed 1,600 Emission Control Equipment (%) -- Proposed
Slide 12: APL: Secure Business Model
03 APL : Secure Business Model STRICTLY CONFIDENTIAL
Slide 13: APL: Strategically located, diversified operating fleet
APL: Strategically located, diversified operating fleet 100% 100% 100% Raipur Raigarh Udupi Tiroda Mahan Kawai Mundra Godda Mahan (Chhattis- (Chhattis- (Karnataka) (Maharashtra) Ph-I (MP) (Rajasthan) (Gujarat) (Jharkhand) Ph-II (MP) garh) garh) Hinterland Category Coastal, Utility Near-Pithead Plant
Slide 14: APL: Capacity Tie-up
APL: Capacity Tie-up Power Supply Contract Models Capacity tie-up (GW) • Regulated Utility – Under Section 62 of Electricity Act. Core + Committed capacity • TBCB State / Private – Under Section 63 of Electricity Act. Regulated Utility • Transnational – Power supply to Bangladesh through 19% 6% dedi
Slide 15: APL: Fuel Mix and Security
APL: Fuel Mix and Security Fuel Mix (%) Power Supply Contract Models Imported fuel based 44% • Majority of domestic fuel requirements tied-up under long- term / medium-term FSAs, supporting high availability under 56% PPAs. Domestic fuel based • Almost entire Merchant/Open capacity is located close
Slide 16: APL: Assured fuel cost recovery
APL: Assured fuel cost recovery Fuel Cost Recovery Models Fuel cost recovery mix (%) • “Fuel cost pass through” under Sec 62 PPAs (Regulated RoE). Fuel cost pass through • “Fuel cost pass through” under Sec 63 PPAs and Transnational contract (Imported coal Index based). • “Escalable energy charge wi
Slide 17: APL: Market Dynamics
04a APL : Market Dynamics STRICTLY CONFIDENTIAL
Slide 18: India power sector: Strong demand growth potential
India power sector: Strong demand growth potential Significant potential for growth of power in India Power demand is poised to accelerate Per Capita Consumption (kWh) 13,098 Billion Units 2,474 1,908 1,511 4,906 1,276 3,957 3,260 2,570 1,208 India Brazil World South Africa China USA FY21 FY23 FY27E
Slide 19: APL: Key Differentiators For Long Term Success
04b APL : Key Differentiators For Long Term Success STRICTLY CONFIDENTIAL
Slide 20: APL: Nimble and profitable
APL: Nimble and profitable 1 Revenue visibility 2 Fuel security • 79% of domestic fuel-based capacity tied up in • 81% capacity tied up under LT / MT PPAs. FSAs. • Secure positions in Merit Order Dispatch. • Largest logistics footprint(1) ensuring timely fuel availability. • Dispatch flexibility for
Slide 21: Project Management & Assurance Group: End to End project integration
Project Management & Assurance Group (PMAG): End to End project integration Bidding, Project Development & Site Scouting Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of above 2,000 man-years o
Slide 22: APL Case Study: 1600 MW Godda Ultra-Supercritical power project
APL Case Study: 1600 MW Godda Ultra-Supercritical power project Landmark achievement in project execution and transnational electricity supply Supporting Bangladesh in achieving its long-term economic goals ▪ Supplanting costly liquid-fueled power with reliable and affordable supply Secure revenue a
Slide 23: APL: Technology usage for reliability – ENOC
APL: Technology usage for reliability – ENOC ENOC (Energy Network Operating Centre) − Remote monitoring, diagnosis, and troubleshooting Centralized Management − Centralized power scheduling for optimum capacity utilisation Real Time Data Availability − Real time data access, enabling smooth and agil
Slide 24: APL: Fuel management & logistics – key competitive advantage
APL: Fuel management & logistics – key competitive advantage Fuel management is key to revenue stability Plant and Mine Locations Only IPP in India with in-house, mine-to-plant logistics capability Handling approx. 60 MMTPA coal, 13 MMTPA Fly Ash Kawai Constant attention to multiple agencies and tou
Slide 25: APTRI: Capability & skill development
APTRI: Capability & skill development Group Grade ‘A’ , Category – I institute delivering high quality training to aspiring engineers/professionals Organizations 21 States 191K Man-Days of Training 3 Continents 40 benefitted 6 Nations Development of India’s 1st supercritical Need to augment technica
Slide 26: APL: Financial Profile
05 APL : Financial Profile STRICTLY CONFIDENTIAL
Slide 27: Strong growth in revenues and operating margins during FY 2022-23
APL: Strong growth in revenues and operating margins during FY 2022-23 Total Revenues (Rs. Crore) Finance Cost (Rs. Crore) +13% 5,657 43,041 5,315 5,106 31,686 4,095 26,362 27,842 28,150 3,334 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Reported EBITDA (Rs. Crore) PAT Growth (Rs. Crore) +18% 1
Slide 28: Steady reduction in leverage and improvement in debt service coverage
APL: Steady reduction in leverage and improvement in debt service coverage Senior Debt / Equity Ratio(1) (x) 6.51 4.80 3.24 2.21 1.18 FY19 FY20 FY21 FY22 FY23 Capital management and leverage reduction Net Debt / Reported EBITDA(2) (x) 5.12 6.02 • Capital management plan implemented 3.83 and returns
Slide 29: Transformation in financial risk profile
APL: Transformation in financial risk profile EBITDA Net Debt / EBITDA INR Bn 2018 2023 APL Rating was APL Rating is CRISIL A 10.0x Rating 6.6x CARE BB+ and IndRa A 200 1.7x 5.0x 150 EBITDA INR 62 Bn INR 143 Bn 0.0x 100 -5.0x Net Debt(1) (As on 31st March) INR 408 Bn INR 243 Bn 50 -10.0x 62 143 Net
Slide 30: ESG Practice at APL
06 ESG Practice at APL STRICTLY CONFIDENTIAL
Slide 31: Adani: Robust ESG assurance framework
Adani: Robust ESG assurance framework Guiding Principles United Nations Global Sustainable GRI Standards Guiding Compact Development Goals Policies Principles Policy Structure Focus Area - UNSDG Environment Policy Covered in • Climate Action E Business Responsibility (BR) • No Poverty ESG Policy • Z
Slide 32: Track record and emission reduction plan
APL: Track record and emission reduction plan In its endeavor for climate readiness, APL is aligning its business model with latest technologies in climate efficient manner Statutory limit (3.5) Climate Awareness Climate Readiness 2.55 2.37 Sp. Water 2.07 2.14 2.19 2.22 2.31 Consumption (m3 / MWh) F
Slide 33: APL: Adopted UN Sustainable Development Goals
APL: Adopted UN Sustainable Development Goals Our Key Social Initiatives mapped to UNSDG United Nations Sustainable Development Goals 2030 • Mobile Heath Care unit: 204,282+ treatments provided through 8 MHUs • Health insurance benefits for ~ 9,502 people Health by issuing health cards Multiple Loca
Slide 34: APL: Financial Outlook
07 APL: Financial Outlook STRICTLY CONFIDENTIAL
Slide 35: APL: High predictability and run rate
APL: High predictability and run rate EBITDA Forecast Net Senior Debt to EBITDA Net +20% Rs. 243.5 Rs. 266.9 Senior Bn Bn Debt (8.5%) 143.1 171.1 1.7x 1.6x FY23 FY24 FY23 FY24 Clear pathway for growth post transformational changes in nature of business Note: Net Senior Debt for FY23 excludes Project
Slide 36: APL: Compelling Investment Opportunity
08 APL : Compelling Investment Opportunity STRICTLY CONFIDENTIAL
Slide 37: Compelling investment opportunity
APL: Compelling investment opportunity ▪ 2nd largest operating thermal capacity in India underpinning the increasing penetration of renewables Scale ▪ Reaching ~100 million consumers in various markets. ▪ Mature operating assets with 74% of total capacity using efficient Ultra-supercritical/Supercri
Slide 38: Thank You
adani Power THANK YOU
Slide 39: Appendix A: APL Case Studies
Appendix A APL: Case Studies STRICTLY CONFIDENTIAL
Slide 40: APL Project Management Case Study: Mundra Thermal Power Plant
1 APL Project Management Case Study: Mundra Thermal Power Plant Mundra Power Plant: Benchmark-setting execution External view of the plant - Developed the largest single location thermal power plant of India in private sector with a total capacity of 4,620 MW - Development of the thermal power plant
Slide 41: Adani Power Acquisition Case Study Udupi Power Project
Adani Power Acquisition Case Study 2 Udupi Power Project – 1,200 MW (2X600 MW) imported coal based power project in Udupi district, Karnataka – Acquired by Adani Power Limited on April 20, 2015, from Lanco Infratech Limited – Value of debt : INR 4,096 crs – Despite being a section 62 project (Tariff
Slide 42: Other acquisitions by Adani Power
3 Other acquisitions by Adani Power Raipur power plant* (previously GMR Chhattisgarh Energy Ltd) Improvement in financial performance post – 1,370 MW (2X685 MW) coal based power project in Raipur District, Chhatisgarh acquisition Particulars FY19 FY20 FY21 FY22 – Successfully approved resolution pla
Slide 43: Appendix B: APL ESG Practices
Appendix B APL: ESG Practices STRICTLY CONFIDENTIAL
Slide 44: ESG Philosophy
APL: ESG Philosophy Reduction in Carbon Emission Resource Management Waste Management Technology driven reduction of specific Sea water usage for cooling and carbon emissions: 74% capacity in Ultra- consumptive requirement at coastal supercritical / Supercritical plants. locations; 7 out of 9 plants
Slide 45: Bettering governance and board independence
APL: Bettering governance and board independence As per our target, we have internalised global best practices of governance and board independence TILL OCT 2021 POST OCT 2021 Internal Audit Framework Policies − Quarterly Audit conducted on various parameters across all − RPT policy applicable to al
Slide 46: Appendix C: APL Segment Performance and Leverage
Appendix C APL: Segment Performance and Leverage STRICTLY CONFIDENTIAL
Slide 47: APL: Operating segment performance and leverage
APL: Operating segment performance and leverage FY23 Reported Revenue and EBITDA Mix Revenue Mix INR Crore EBITDA Mix -2,320 -13,413 Near-pithead 1526 Coastal 2,004 27,066 Hinterland 1,593 8,790 6,070 APL standalone 21,314 4,723 Eliminations Deleveraging of balance sheet and stronger net worth Finan