Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Presentation (November 2022)
50 slides from Adani Green Energy's investor presentation, November 2022
Slide 1: Adani Green Energy Limited Investor Presentation
Adani Green Energy Limited Investor Presentation November 2022
Slide 2: Table of Contents
Table of Contents 1 Adani Portfolio – Overview 2 Adani Green Energy Limited – Company Profile 3 Adani Green Energy Limited - Business Philosophy 3a Strategic Sites & Evacuation 3b Project Management & Assurance Group (PMAG) 3c O&M Capabilities 3d Capital Management Philosophy 4 AGEL - ESG 5 AGEL - I
Slide 3: Adani Portfolio - Overview
01 Adani Portfolio - Overview STRICTLY CONFIDENTIAL
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio ~USD 240 bn1 Combined Market Cap Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (72.6%) (60.5%) (73.9%) (66.0%) (100%)
Slide 5: 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 5x Core Portfolio EBITDA 70% 1,2 EBITDA 92% 1,4 Utility 92% Transport 85% Consumers ~400 mn Served AEL Growth
Slide 6: Adani Portfolio: Repeatable, robust & proven transformative model of investment
Adani Portfolio: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Analysis & market • Site acquisition • Engineering & design • Life cycle O&M • Redesigning capital
Slide 7: AGEL: Replicating Group's Simple yet Transformational Business Model
AGEL: Replicating Group's Simple yet Transformational Business Model Secure Sites & Connectivity Resource Assessment Construction Readiness Development ~2,00,000 acres ~40 GW potential Geotechnical studies Resource rich sites in strategic locations 85+ Wind data locations and detailed design plannin
Slide 8: Adani & TotalEnergies Renewable Partnership
Adani & TotalEnergies Renewable Partnership Adani and TotalEnergies have a long-term partnership and commitment to expanding the renewable footprint through AGEL – Amongst Largest infrastructure and real asset platform with deep – One of the largest energy players in the world with presence across e
Slide 9: Adani Green Energy Limited (AGEL): Company Profile
02 Adani Green Energy Limited (AGEL): Company Profile STRICTLY CONFIDENTIAL
Slide 10: AGEL at a glance
AGEL at a glance Adani Family 60.8% 1.3% 6 19.7% Public 18.2% Shareholders 50% 50% 100 % 100 % 100 % AGE23L 1 Other Operating Locked-in Under Execution Near construction 2,353 MW 4,371 MW 10,477 MW 3,233 MW portfolio: 20,434 MW Large 6,724 MW – Operational 2 89% Resource and 12 resource-rich states
Slide 11: AGEL: Leading Renewable Energy player in India
AGEL: Leading Renewable Energy player in India Pan India Presence 1 3x Locked-in Growth Renewable Capacity (in MW) 20,434 Operational Under exec../ Near Const. Wind Solar 6,724 MW – Operational 3x Solar-Wind Hybrid 10,477 MW – Under execution 3,233 MW – Near Construction 2 6,724 130 395 20,434 MW -
Slide 12: Growth and Cash Generation capability Derisked
Growth and Cash Generation capability Derisked Assets contracted under 25 year PPA, 89% of contracted capacity on fully built basis is contracted to sovereign / sovereign equivalent counterparties Development risk to reduce with increasing proportion of Operating Capacity (for locked-in portfolio of
Slide 13: Track record of high growth coupled with actual performance consistently higher than projections
Track record of high growth coupled with actual performance consistently higher than projections AGEL has consistently outperformed projections for its operational assets Restricted Group 1 (930 MW) – EBITDA (Projected vs. Actual) Restricted Group 2 (570 MW) - EBITDA (Projected vs. Actual) Projected
Slide 14: Adani Green Energy Limited (AGEL): Business Philosophy
03 Adani Green Energy Limited (AGEL): Business Philosophy STRICTLY CONFIDENTIAL
Slide 15: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Site and Evacuation Project Execution − ~40GW of strategic sites with geotechnical, − PMAG - Central team with deep experience resource analysis & design work done − Example: Execution of 648 MW
Slide 16: 3a. Strategic Sites & Evacuation
3a. Strategic Sites & Evacuation
Slide 17: Construction ready Strategic Sites with high resource potential (40GW)
Construction ready Strategic Sites with high resource potential (40GW) Identified high resource potential sites of ~2,00,000 acres in Rajasthan and Gujarat Rajasthan and Connectivity granted for entire Gujarat Clusters ~2,00,000 Acres Of Land ~2,00,000 acres portfolio. Predominantly Owned By For pla
Slide 18: Additional Sites under Development (10.5 GW)
Additional Sites under Development (10.5 GW) Future Readiness with High Resource Potential sites in Maharashtra, Karnataka, Tamil Nadu Strategy to acquire Focus States Average CUF Barren Non-agricultural Maharashtra, Karnataka Solar DC CUF ~19%-21% Waste land Tamil Nadu Wind CUF ~40%+ ✓ Wind & Solar
Slide 19: Case Study: Renewable cluster deployment of up to 15 GW in Rajasthan
Case Study: Renewable cluster deployment of up to 15 GW in Rajasthan Site Development mostly de-risked 2.7 GW Hybrid projects PPA already secured, 990 MW already commissioned and 1,750 MW under execution Stakeholder Good relations established with local Management administration helping smooth execu
Slide 20: 3b. Project Management & Assurance Group (PMAG)
3b. Project Management & Assurance Group (PMAG)
Slide 21: PMAG - 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
Slide 22: PMAG – Impact & Value additions
Project Management & Assurance Group (PMAG) – Impact & Value additions Effective Seamless Project Delivery on Support Decision Managing Priorities Project Governance Structure Time, Cost and returns Making • Effective Project Management • Integrated Project Schedules ( Primavera) teams • Capex basel
Slide 23: Demonstrated Project Execution Capability
Demonstrated Project Execution Capability Project Management & Assurance Group (PMAG) for control over end-to-end project execution – Team of 90 professionals having hands-on experience of 2,000+ man-years of complete project management cycle – Capacity addition of 925 MW in FY21 during COVID19 pand
Slide 24: 3c. O&M Capabilities
adani Renewables 3c. O&M Capabilities
Slide 25: Technology Enabled Operational Excellence
Technology Enabled Operational Excellence – AGEL operating assets currently spread across 12 states. – Cluster based operating model enabling smooth governance and efficient utilization of manpower and spares: Personnel spread across Central office → Cluster teams (15 regional cluster teams) → Site
Slide 26: Granular CUF Waterfall to identify Generation losses
Granular CUF Waterfall to identify Generation losses Traditional Approach ENOC – Gap identification at granular level Solar 4.25% 0.48% 0.03% 27.58% 0.13% 0.05% 0.00% 0.00% 0.00% 0.00% 0.13% 27.53% 3.70% 27.53% 23.83% 0.00% 0.00% 0.01% 23.84% 23.83% Uncontrollable Controllable P50 Full Ramp DC DC DC
Slide 27: 3d. Capital Management Philosophy
3d. Capital Management Philosophy
Slide 28: Replicating Adani Business Model: Capital Management Philosophy
Replicating Adani Business Model: Capital Management Philosophy De-risking of underling SPVs to generate and release surplus cashflows for AGEL De-risking integrated in Capital Mgmt. throughout Project Project Financing Stabilization HoldCo. Financing Post-Stabilization Phase SPV level Phase lifecyc
Slide 29: HoldCo Financing: Maiden HoldCo Green Bond Issuance by AGEL
HoldCo Financing: Maiden HoldCo Green Bond Issuance by AGEL Cash Waterfall – AGEL raised USD 750 mn through Holdco bond issuance under the 144A / Reg S format with flexibility to raise additional USD 950 mn to fund future growth. FCFE 1 – All round participation from Real Money Investors, comprising
Slide 30: Construction Financing: Fully Funded Growth through Construction Framework Agreement
Construction Financing: Fully Funded Growth through Construction Framework Agreement – AGEL has signed up Construction Framework Agreement for under construction projects for US$1.64 bn (expanded from initial US$1.34 bn) with 26 leading international lenders. – Revolving capex facility: 2,140 MW hyb
Slide 31: Takeout Financing: Established template of financing from debt capital markets
Takeout Financing: Established template of financing from debt capital markets, replicable in future Summary cashflow waterfall of Risk Mitigants in-built in RG 2 typical green bond 1 Taxes and operating expenses – Standard project finance features – Clean first ranking security Robust Structural –
Slide 32: Adani Green Energy Limited (AGEL): ESG
04 Adani Green Energy Limited (AGEL): ESG STRICTLY CONFIDENTIAL
Slide 33: AGEL: Robust ESG Assurance Framework
AGEL : Robust ESG Assurance Framework Guiding principles UN Sustainable India Business & IFC E&S United Nations Green Bond Guiding Development Goals SBTi Biodiversity Performance Policies Global Compact Principles principle (UN SDGs) Initiative (IBBI) Standards Disclosure Standards TCFD GRI Standard
Slide 34: AGEL: Update on ESG Program
AGEL: Update on ESG Program Guiding Principles Disclosure Standards ✓ Signatory to United Nations Global Compact (UNGC): Submitted ✓ TCFD: Supports TCFD and the annual ESG Report enumerates Communication on Progress (COP) for FY22 progress on Governance; Strategy; Metrics and Targets and Risk Manage
Slide 35: AGEL: Governance - Revised Board of Charter implemented
AGEL: Governance - Revised Board of Charter implemented ➢ Newly formed Board Committees ✓ Corporate Responsibility Committee with 100% Independent Directors to assure implementation of ESG commitments ✓ New Sub-Committees of Risk Management Committee with at least 50% Independent Directors ✓ Mergers
Slide 36: AGEL– Adopted UN Sustainable Development Goals
AGEL– Adopted UN Sustainable Development Goals United Nations Sustainable Our Key Social Initiatives mapped to UNSDG Development Goals 2030 o Armchairs, round table, water purifier, LED television provided for school Education children at Kappekeri village, Karnataka 3. Good Health & Well-Being Karn
Slide 37: Adani Green Energy Limited (AGEL): Investment Case
05 Adani Green Energy Limited (AGEL): Investment Case STRICTLY CONFIDENTIAL
Slide 38: AGEL: Key Investment Highlights
AGEL: Key Investment Highlights – World class project execution with equipment sourced from tier 1 suppliers through strategic alliances Excellent execution – Central monitoring of all project execution by Project Management & Assurance Group track record – Track record of executing projects ahead o
Slide 39: 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 Green Energy Limited (“AGEL”),the future outlook and growth prospects, and fut
Slide 40: Thank You
Thank You
Slide 41: Appendix: Operational & Financial Highlights
Appendix Operational & Financial Highlights
Slide 42: AGEL– Operational Performance
AGEL– Operational Performance Operational Capacity (MW AC) CUF % (AC) Solar Wind Hybrid Solar Wind Hybrid 6,724 36.6% 36.6% 5,410 990 30.8% 1 26.7% 26.8% 647 971 23.8% 24.3% 3,470 22.6% 22.5% 2,545 1 497 397 4,763 4,763 2,973 2,148 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 Plant Availability Vol
Slide 43: AGEL– Financial Performance
AGEL– Financial Performance (All figures in INR Crore) Revenue from Power Supply EBITDA from Power Supply 1 3,783 3,530 2,419 2,435 2,207 2,396 2,065 1,859 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 EBITDA from Power Supply (%) Cash Profit 2 92% 92% 1,854 89% 91% 1,250 1,281 529 FY20 FY21 FY22 H1
Slide 44: Appendix: Asset Level Details
Appendix Asset Level Details
Slide 45: Asset Level Details – Operational
Asset Level Details – Operational Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff COD (AC) (DC) Name Term Tamil Nadu (AGETNL) Solar 216 260 7.01 Mar-16 TANGEDCO 25 Tamil Nadu (RSPL) Solar 72 86 7.01 Feb-16 TANGEDCO 25 AGETNL Tamil Nadu (KREL) Solar 72 86 5.76 Mar-16 TA
Slide 46: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff COD (AC) (DC) Name Term PNCEL Punjab Solar 20 21 8.7 Mar-21 PSPCL 25 PNREL Punjab Solar 10 10.5 8.65 Feb-21 PSPCL 25 KNSSEPL Karnataka Solar 5 6.3 4.36 Oct-21 GESCOM 25 KNIVSEPL
Slide 47: Asset Level Details – Operational (Contd.)
Asset Level Details – Operational (Contd.) Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff COD (AC) (DC) Name Term AGEL – Lahori Madhya Pradesh Wind 12 12 5.92 Mar-16 MPPMCL 25 AWEGPL Gujarat Wind 30 30 4.19 Mar-17 GUVNL 25 AWEGPL Gujarat Wind 18 18 3.46 Mar-17 GUVNL 2
Slide 48: Asset Level Details – Under execution
Asset Level Details – Under execution Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 4,667 6,767 2.42 SECI 25 Various SPVs Rajasthan/ Gujarat Solar+ Mfg 1,250 1,813 2.54 SECI 25 AREEL Gujarat Solar 150 225
Slide 49: Asset Level Details – Under execution (Contd.)
Asset Level Details – Under execution (Contd.) Contracted Capacity Planned Capacity Planned Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (AC) (DC) Name Term 700 Solar: 600 Solar: 870 AHEJFL Rajasthan Hybrid 3.24 AEML 25 Wind: 510 Wind: 510 600 Solar: 570 Solar: 855 AHEJFL Rajastha
Slide 50: Asset Level Details – Near Construction
Asset Level Details – Near Construction Contracted Capacity Capacity Counterparty PPA SPV Project Location Type Tariff (AC) (DC) Name Term Various SPVs Rajasthan/ Gujarat Solar+ Mfg 2,083 3,020 2.92 SECI 25 Various SPVs Rajasthan Solar 100 142 Merchant Merchant 25 ASEJSPL Rajasthan Solar 600 900 2.5
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