Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — H1 FY21 Earnings Presentation
45 slides from Adani Energy Solutions's earnings presentation, November 2020
Slide 1: H1 and Q2 FY21 Results Presentation
Adani Transmission Limited H1 and Q2 FY21 Results Presentation November 2020
Slide 2: Contents
CONTENTS 04-07 Adani Group 04 09-12 Company Profile 09 14-18 Operational Highlights 14 20-27 Financial Highlights 20 Balance sheet and CF update 29-32 and Key focus area FY21 29 ESG – Embedded into our 34-36 34 operations 38-43 Annexure 38
Slide 3: Adani Group
Transmission adani
Slide 4: Adani: A world class infrastructure & utility portfolio
Adani: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.5% 100% 75% 75% Marked shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL – Gas distribution network to serve key 100% 75% 3
Slide 5: 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 (MT) Renewable Capacity (GW) CGD8 (GAs9 covered) 45% 21% 161% 12% 1.5x 3x 30% 2.5x 6x 7% 5% 25% Industry ATL Industry APSEZ Industry Adani AGEL Industry AGL 2016 320,000 ckm
Slide 6: 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 Activity intelligence pla
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 Healthy pool mix Transmission Network of Transmission - Present in 9 states Development with 21 transmission lines Transmission (FY20): 14,837 ckms1; 52% of EBITDA - Central pool Dis
Slide 8: Company Profile
Company Profile
Slide 9: Manifesting Adani's Infrastructure Excellence in T&D business
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 Retail Electricity Households HVDC in S-E Asia catering to g
Slide 10: ATL at a Glance
ATL at a Glance Contracted Assets ROA Assets 25.1% 100% 100% 74.9% 100%1 Transmission HVDC Consumer-facing Assets Transmission line Integrated Utility TBCB Assets 4 Operating HVDC Line in AEML catering to Transmission Assets Mumbai 3 mn+ Connections Concession Life of Transmission 12 Operating 9 Und
Slide 11: Contracted Assets at a Glance
Contracted Assets at a Glance Contracted Assets Key Characteristics TBCB Fixed 35 yrs + 30 yrs of (Section 63) Tariff Asset Life remaining life of asset Operating Asset Base Op. EBITDA Assets (Rs. Bn) FY20 (Rs. Bn) Counterparty Network Pool 12 57 8.0 Function of line Under-construction Asset Base Fu
Slide 12: ROA assets at a Glance
ROA assets at a Glance 3 Consumer-facing Integrated Utility (AEML) 1 ROA Transmission Assets Key Characteristics ROA Transmission Assets Consumer 3.04 million Counterparty Consumers base Return on Assets (ROA -Section 62) Type of Regulated Asset Life Perpetual Asset Asset (Sec. 62) business Network
Slide 13: H1FY21 Operational Highlights
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission H1FY21 Operational Highlights 14
Slide 14: Executive Summary – H1FY21 Operational Highlights
ATL: Executive Summary – H1FY21 Operational Highlights • Transmission system availability at 99.9% in Transmission business • Maintained supply reliability at 99.99% (ASAI) in Distribution business • Distribution losses improved significantly from 13.5% in Q1 FY21 to 8.5% in H1 FY21 on account of bi
Slide 15: H1FY21 - Operational Highlights: Snapshot
ATL: H1FY21 - Operational Highlights: Snapshot Transmission business Distribution business Network Distribution Availability Consumers length Losses 1HFY21 99.88% 14,837 ckt km 3.05 million 8.51% 1HFY20 99.80% 14,738 ckt km 3.04 million 7.97% Distribution business Supply Reliability Units Sold Colle
Slide 16: Transmission Utility: Line availability across asset groups
ATL: H1FY21 - Transmission Utility: Line availability across asset groups Average Availability Across Operational Assets(1) % Focus on Maximizing Incentive % Line Availability - Obligor Group Incentive – Obligor 1 and Obligor 2 Normative Incentive 99.84% 99.80% 2.27% 1.3% 1.2% 0.7% 1.46% 98.5% 98.5%
Slide 17: Integrated Distribution Utility (AEML): Key Operating Metrics
ATL: H1FY21 - Integrated Distribution Utility (AEML): Key Operating Metrics Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) Target: Maintain SAIFI SAIDI CAIDI Consistently Improve 99.9% reliability efficiency factors 99.995% 99.991% 32.67 29.43 Supply reliability of 23.7
Slide 18: Integrated Distribution Utility (AEML): Key Operating Metrics
ATL: H1FY21 - Integrated Distribution Utility (AEML): Key Operating Metrics Consumer base (million) Distribution Loss(1) (%) Number of Complaints (No Power) Improving customer Consistently grow Target of <=7% satisfaction consumer base 8.51% 3.05 3.04 7.97% 478,887 Slight increase Distribution loss
Slide 19: Financial Highlights H1FY21 vs. H1FY20
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future – Financial Highlights Outlook H1FY21 vs. H1FY20 14
Slide 20: Executive Summary – Financial Highlights H1FY21
ATL: Executive Summary – Financial Highlights H1FY21 • Consolidated operational revenue at Rs. 4,272 Cr(1) in H1 FY21 lower due to lower power consumption and shortfall in collections in Distribution business mainly in Q1FY21. Q2 saw considerable improvement in both demand and collections • Consolid
Slide 21: Financial Highlights – Snapshot H1FY21
ATL: Financial Highlights – Snapshot H1FY21 Consolidated Transmission Distribution 1HFY21 1HFY20 1HFY21 1HFY20 1HFY21 1HFY20 Operating Transmission business Revenue 4,272 5,446 1,368 1,343 2,904 4,103 performance is broadly insulated from current disruptions resulting into strong performance Operati
Slide 22: Transmission Utility - Revenue and Operating EBITDA Bridge H1FY21
ATL: Transmission Utility - Revenue and Operating EBITDA Bridge H1FY21 1HFY21 – Revenue bridge YoY 1HFY21 – Operating EBITDA bridge YoY 4 18 (17) 28 (4) 13 (16) 12 4 1,331 1,318 1,267 1,238 H1 FY21 GTL - one CWRTL MEGPTCL - MEGPTCL - WTPL & ATIL - normal H1 FY20 element Aurangabad APTEL Order normal
Slide 23: Distribution Utility - Revenue and Operating EBITDA Bridge H1FY21
ATL: Distribution Utility - Revenue and Operating EBITDA Bridge H1FY21 1HFY21 – Revenue bridge YoY 1HFY21 – Operating EBITDA bridge YoY ( 1,199 ) (29) 687 ( 947 ) ( 231 ) ( 408 ) 433 422 19 (8) ( 46 ) 4,103 30 2,904 804 882 H1 FY21 Additional Transmission Wheeling Cross Rate Fuel Qty Variance H1 FY2
Slide 24: Financial Highlights Q2FY21 vs. Q2FY20
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Financial Highlights Future – Q2FY21 Outlook vs. Q2FY20 14
Slide 25: Financial Highlights – Snapshot Q2FY21
ATL: Financial Highlights – Snapshot Q2FY21 Consolidated Transmission Distribution Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Transmission business Operating performance is broadly Revenue 2,156 2,588 688 674 1,467 1,914 insulated from current disruptions resulting into strong performance Operating E
Slide 26: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY21
ATL: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY21 Q2FY21 – Revenue bridge YoY Q2FY21 – Operating EBITDA bridge YoY 7 7 4 (16) (2) 14 1 7 1 669 662 637 623 Q2 FY21 CWRTL GTL one MEGPTCL & WTPL & MEGPTCL Others Q2 FY20 Aurangabad element ATIL - WTGL APTEL Order Padghe line became
Slide 27: Distribution Utility - Revenue and Operating EBITDA Bridge Q2FY21
ATL: Distribution Utility - Revenue and Operating EBITDA Bridge Q2FY21 Q2FY21 – Revenue bridge YoY Q2FY21 – Operating EBITDA bridge YoY ( 300 ) (31) (7) 355 (446) ( 231 ) 206 ( 107 ) 9 ( 24 ) 107 1,914 1,467 363 385 Q2 FY21 Additional Wheeling Cross Fuel Rate Qty Variance Q2 FY20 Past charges Subsid
Slide 28: Balance Sheet and Cash flow update
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Future Outlook Balance Sheet and Cash flow update 14
Slide 29: EBITDA to Free Cash Flow (H1 FY21)
ATL: EBITDA to Free Cash Flow (H1 FY21) Solid Free Cash Flow generation available for future growth 2637 -1,015 -852 -114 656 -106 550 EBITDA Working Capital Interest & Finance Tax expense Cash profit Repayment Cash generation for Changes cost Growth Notes: EBITDA includes regulatory income; FCF mea
Slide 30: Debt Evolution and Key Ratios – H1 FY21
ATL: Debt Evolution and Key Ratios – H1 FY21 Cost of Debt: reduced by 38 bps vs. H1 FY20 Net Debt(1) Net Debt Evolution Key Ratios 1322 595 4.7 2,049 4.3 4.3 1451 443 4,008 1,959 3.3 2.6 2.3 2.1 2.1 16,617 16,930 1.6 1.6 1.3 1.3 16,930 16,617 FY18 FY19 FY20 1H FY21 Net Debt to EBITDA Sep'19 Sep'20 H
Slide 31: Capital Management Program brings diversity and elongated maturity to debt profile
ATL’s Capital Management Program brings diversity and elongated maturity to firm’s debt profile Refinancing risk minimised1 As of As of 12% 31st Mar 16 30th Sep. 20 < 1 Y - 19% < 1 Y - 2% 1 to 5 Y - 69% 1 to 5 Y - 11% 89% > 5 Y - 12% > 5 Y - 87% Consolidated Rs. 166 bn Rs. 85 bn Net Debt FY16 H1 FY2
Slide 32: Key Focus Areas FY21 and Beyond
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 avenues: • Fully covered in-terms of debt servicing for next 12 months by • Robust un
Slide 33: ESG
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ESGESG 08
Slide 34: Integrated ESG Framework for enhanced value creation
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 12 mn Mumbai consumers 12x growth in renewable power proc
Slide 35: ESG Quarterly Performance and Initiatives
ATL: ESG Quarterly Performance and Initiatives ESG Performance (Q2FY21)1 ESG Initiatives during the year • ATL became the signatory to India Business & 9.68 MWh Biodiversity Initiative (IBBI) for incorporation of Solar Power Generation at ADTPS Biodiversity management in business operations. • Initi
Slide 36: Inculcating Safety Culture
ATL: Inculcating Safety Culture Safety Initiatives during the year Safety Performance in Q2FY21 Safety Parameters Q2 FY21 Q2 FY20 • 53,475 man-hours of safety training and awareness Reportable Incident 02 00 • Virtual cross safety audit is completed across O&M sites • Conducted first-aid awareness a
Slide 37: Annexure
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission Annexure (Detailed Financials, Credit Rating, Asset Portfolio) 22
Slide 38: P&L H1FY21 vs. H1FY20
ATL: P&L H1FY21 vs. H1FY20 (Rs in Crore) H1 FY21 H1 FY21 H1 FY21 H1 FY20 H1 FY20 H1 FY20 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 1,331 2,904 4,236 1,318 4,103 5,421 1.1.a Trans
Slide 39: P&L Q2FY21 vs. Q2FY20
ATL: P&L Q2FY21 vs. Q2FY20 (Rs in Crore) Q2 FY21 Q2 FY21 Q2 FY21 Q2 FY20 Q2 FY20 Q2 FY20 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 669 1,467 2,137 662 1,914 2,576 1.1.a Transmiss
Slide 40: P&L Q2FY21 vs. Q1FY21
ATL: P&L Q2FY21 vs. Q1FY21 (Rs in Crore) Q2 FY21 Q2 FY21 Q2 FY21 Q1 FY21 Q1 FY21 Q1 FY21 Sr No. Particulars % change Transmission Distribution (Consolidated) Transmission Distribution (Consolidated) 1 Revenue 1.1 Net Transmission & Distribution Charges 669 1,467 2,137 662 1,437 2,099 1.1.a Transmiss
Slide 41: ATL is rated Investment Grade from FY16 and beyond
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-/Negative ATL CARE, India Ratings AA+ Stable S&P Dollar Bond BBB-/Stable AEML India Ratings AA+ Stab
Slide 42: ATL's Evolution and Operational Portfolio
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 ATL’s “Grid-to-Switch” Integrated Platform 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP ATIL MEGPT
Slide 43: Locked-in Growth from Under-construction projects
ATL: Locked-in Growth from Under-construction projects Adani Transmission Limited 100% 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 baliya - Vikhroli kantha North Fategarh Ghatampur Obra
Slide 44: 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 45: Thank You
adani Transmission adani Transmission Thank You ¢