Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q3 FY24 Earnings Presentation
38 slides from Renew Energy Global's earnings presentation, Feb 20, 2024
Slide 1: Q3 FY24 Earnings Presentation
Q3 FY24 Earnings Presentation February 20, 2024 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services offered by ReNew Energy Global, the markets in which ReNew Energy Global operates and ReNew Energy Global
Slide 3: Agenda
Agenda 01 Highlights 02 Financial Highlights 03 Sustainability and ESG 04 Guidance 05 Appendix
Slide 4: Highlights
Highlights Raising Adjusted EBITDA guidance; execution on track Continued progress on asset recycling • Bottom end of FY24 Adjusted EBITDA range raised further • 300 MW asset sale signed in Jan’24 by 2%; now expect FY24 Adjusted EBITDA of INR 63-66 bn • Expect to realise net cash proceeds of US$ 82
Slide 5: Favorable macros: higher tariffs, lower costs, better returns
Favorable macros: higher tariffs, lower costs, better returns Auction market robust(1)* Strong tailwinds in India RE industry GW 80 Visible expansion 70 in market share for 60 complex projects 23.9 ▪ 3.5x increase in auctions vs prior year 50 50 GW(2) 40 3.3 • 44% ~40 GW* of auctions YTD FY24 versus
Slide 6: Disciplined approach towards securing higher return opportunity
Disciplined approach towards securing higher return opportunity Lowest ever subscription rate in complex auctions Disciplined approach to securing growth(1) ▪ Complex auctions(1) : GW GW 15% market share in auctions YTD, returns higher 45.0 40.2 8.0 • 15.4 GW* auctioned YTD; 80% average subscription
Slide 7: Execution on track
Execution on track Steady progress on ground Transmission Peak Power ▪ ~1.9 GW erected at sites as on date: • 825 MW commissioned YTD • ~474 MW of wind turbines, ~620 MW of solar modules erected at site • 925-1,125 MW expected to start generating revenue by end of FY24 ▪ 150 MWh Battery Energy Stora
Slide 8: Financial Highlights
02 Financial Highlights 8
Slide 9: Ample domestic debt available at attractive terms
Ample domestic debt available at attractive terms Leveraging on strong domestic liquidity Sustained reduction in interest cost despite rising interest rates ▪ US$ 325 mn bond refinanced in Jan’24 at sub 9% interest rate Limited impact to ReNew from 11.5 % global higher interest rates 6.0 % • ~200 bp
Slide 10: Continue to access cheapest cost equity
Continue to access cheapest cost equity Enhancing returns through capital recycling Illustrative example of minority sale economics 100% 75% ▪ ~US$ 565 mn realized through capital recycling in last 2 years (~US$ 93 mn YTD); further US$ 82 mn 25 – 50% increase in expected to be realized equity IRRs R
Slide 11: Q3 FY24 operating performance
Q3 FY24 operating performance ▪ Total portfolio ~13.8 GW(1) Key metrics (INR bn) 72.4 • ~8.7 GW commissioned(1) 63.5 • Wind: 4.4 GW, Solar: 4.2 GW, Hydro: 99 MW 52.4 • ~5.1 GW committed(1) 50.0 • Solar: 3.3 GW, Wind: 1.8 GW 16.1 19.1 ▪ Commissioned 11.6 12.5 • 590 MW of corporate projects commission
Slide 12: Continued improvement in DSO
Continued improvement in DSO Ageing of receivables % share in total Days Contribution ▪ DSO(4) 86 days at Dec’23, improved by 92 days YoY Offtaker DSO receivables to DSO (2) Central Govt. , 6 days 2% 1 ▪ Working capital release of ~US$ 82 mn YTD GJ(3) Corporates 31 days 4% 3 ▪ Significant reduction
Slide 13: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary March 31, December 31, December 31, 2023 2023 2023 INR mn INR mn US$(4) mn (Audited) (Unaudited) (Unaudited) Cash and cash equivalents, bank balances 77,021 113,303 1,362 (including short and long term)(1) Property, plant and equipment, net(2) 538,355 645,073 7,754
Slide 14: Sustainability and ESG
03 Sustainability and ESG 14
Slide 15: Key highlights from Q3 FY23-24
Key highlights from Q3 FY23-24 Sustainability @ReNew Impacting Communities With Sustainability Initiatives Received a score of 79.25/100 (increase from score of 77 in FY21-22): Best among all Electric Utilities & IPPs corporates in India for FY22-23 and second among Electric Utility & peers globally
Slide 16: Guidance
04 Guidance 16
Slide 17: Guidance
Guidance Adjusted EBITDA(1)(5) Net debt*(2)(5) to Adj. EBITDA levels INR 89 – 94 bn* INR 221 – 233/share INR 63 – 66 bn INR 62 bn INR 156 – 164/share INR 153/ share 1.2x 0.4x-0.7x Consolidated Consolidated 5.7x Project Level 5.1-5.3x Run Rate FY23 Actual FY23 FY24e EBITDA Total Portfolio Run Rate 13
Slide 18: Appendix
05 Appendix 18
Slide 19: US$ 150 mn Adj. EBITDA for Q3 FY24
US$ 150 mn Adj. EBITDA for Q3 FY24 In mn Adjusted Q3 FY24 Adjusted YoY % growth Q3 FY24 Q3 FY23 Adj Q3 FY23 Adjustments Q3 FY24 Comments Vs (INR) (INR) (US$) (INR) (US$) (INR) (US$) Q3 FY24 Adj Revenue from contracts with 13,170 15,993 192 - - 15,993 192 21% customers Other operating income 702 487
Slide 20: US$ 630 mn Adj. EBITDA for 9M FY24
US$ 630 mn Adj. EBITDA for 9M FY24 In mn Adjusted 9M FY24 Adjusted YoY growth % 9M FY24 9M FY23 Adj 9M FY23 Adjustments 9M FY24 Comments v/s (INR) (INR) (US$) (INR) (US$) (INR) (US$) 9M FY24 Adj Revenue from contracts with 54,904 63,199 760 - - 63,199 760 15% customers Other operating income 972 789
Slide 21: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation In mn For the three months ended December 31, For the nine months ended December 31, 2022 2023 2023 (1) 2022 2023 2023 (1) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (INR) (INR) (US$) (INR) (INR) (US$) Profit/Loss for the period (4,013) (3,216)
Slide 22: Cash Flow to Equity Reconciliation
Cash Flow to Equity Reconciliation In mn For the three months ended December 30, For the nine months ended December 30, 2022 2023 2023 2022 2023 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (INR) (INR) (US$) (INR) (INR) (US$) Adjusted EBITDA 11,628 12,509 150 49,994 5
Slide 23: Operating Performance and Seasonality
Operating Performance and Seasonality Q3 FY23 Q3 FY24 9M FY23 9M FY24 Wind Solar Wind Solar Wind Solar Wind Solar Commissioned capacity (GW) 3.9 3.7 4.4 4.0 3.9 3.7 4.4 4.0 Weighted average operational 3.9 3.7 4.3 4.0 3.8 3.7 4.2 4.0 capacity(1) (GW) Plant load factor (%)(4) 15% 24% 18% 23% 29% 24%
Slide 24: Wind PLF Performance
Wind PLF Performance All India wind energy PLFs 40.0% (FY 2021 – FY 2024) 35.4% Continue to see improvement in our wind PLFs 35.0% 30.0% 25.6% ReNew wind PLFs in line with all-India trends 25.0% 41.3% 20.0% 34.8% 29.9% 36.3% 12.3% 32.7% 17.0% 30.8% 20.0% 15.0% 16.7% 14.7% 18.3% 10.0% Q1 Q2 Q3 Q4 FY2
Slide 25: Finance Cost Walk
Finance Cost Walk 9M FY23 Interest Expense vs 9M FY24 Interest Expense All numbers in INR bn 50 3.57 (6.50) 45 40 (3.38) (0.38) 35 30 25 20 41.76 35.82 15 10 5 0 9M FY23 New Term Loans Lower Foreign Exchange Lower Derivatives Expense Others 9M FY24 Expenses 25
Slide 26: Debt Profile (>80% Maturity >3 years, ~60% Fixed Rate)
Debt Profile (>80% Maturity >3 years, ~60% Fixed Rate) By Debt Type By Source By Currency Others 3% INR Variable Secured Loan 54% 40% from FI Secured Bank Loan 30% 30% US Dollars 43% (hedged) (1) Senior Overseas Fixed Working Capital Loan Green Bonds 60% INR Bonds 3% 32% 4% By Project Type (4) By Ma
Slide 27: ReNew's Outstanding Bonds
ReNew’s Outstanding Bonds Outstanding Avoided emissions (t CO2/year) Bond Type Issue Date Maturity Coupon Hedge Green Bond ($ mn) attribute to the bonds Holdco Issuance Jan 2020 Mar 2027 270 5.875% ATMF Yes 577,095 Restricted Group Oct 2020 Apr 2024 325 5.375% ATMF/CCS Yes 773,969 (RG III)(1) Restri
Slide 28: Run Rate Debt Walk from FY23 Debt Level for 13.8 GW Portfolio
Run Rate Debt Walk from FY23 Debt Level for 13.8 GW Portfolio INR 165 -180 bn INR 65 - 72 bn INR 76 bn INR 50 - 60 bn INR 30 –40 bn INR 495 bn INR 590 - 610 bn INR 530 - 560 bn # Net of INR 18.1 bn of debt related to minority stake sale and INR 17.4 bn of CCD considered as equity 28 The capex consid
Slide 29: Bolstering Our ESG Targets
Bolstering Our ESG Targets Our ESG targets Update for Q2 FY24 Status To be validated as carbon neutral (scope 1 Verified as ‘carbon neutral’ for our operations across ~150 sites and facilities for FY23 & 2) annually till 2025 Assurance • Assurance for FY22-23 completed Completed Calculation of Scope
Slide 30: Counterparty Overview and Asset Breakdown
Counterparty Overview and Asset Breakdown Total Portfolio Total 13.8 GW Technology Solar 7.5 GW Wind 6.2 GW Hydro 0.1 GW Commissioned Committed Commissioned Committed Project Stage 4.0 GW 3.3 GW 4.3 GW 1.8 GW Commissioned 0.3 GW Centre State Corporate Centre State Corporate PPA Counterparty 3.7 GW 2
Slide 31: Updated Share Holders and Diluted Shares
Updated Share Holders and Diluted Shares Economic Shareholding (1) Total Shares Outstanding For ReNew Energy Global PLC August’21 (Listing Current Shares (Mn) date) Particulars 26.76% 35.57% 21.0% Class A Shares 244 Class B Shares(3) - 3.0% 53.6% 3.64% 7.4% Class C Shares 118 6.65% Class D Shares(3)
Slide 32: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) 23.1MW: APPC Rate + escalation linked to State APPC tariff; 2.1MW: INR GUVNL (23.1), 23.1 MW: 25 years; Jasdan
Slide 33: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) Ostro-Lahori 92.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 Ostro-Amba 66.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 Os
Slide 34: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,680 MW) Ostro - Kutch (SECI 1) 250.0 Gujarat Oct-18 3.46 PTC 25 SECI II 230.1 Gujarat Oct-19 2.64 SECI 25 GUVNL 35.0 G
Slide 35: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,196 MW) 5.98 for year 1 with 3% escalation till year 10, 10th year tariff Cumbum 21.0 Andhra Pradesh Mar-16 APSPDCL 2
Slide 36: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Committed Projects (2,375 MW) SECI IX 700.0 Rajasthan Q4 FY24-H2 FY25 2.37 SECI 25 GUVNL – XIX 400.0 Gujarat H2 FY25 2.71 GUVNL 25 Total Utili
Slide 37: Project Level Details
Project Level Details (as of Jan 29, 2024) Project Type Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Firm Power Committed Projects (236 MW) 2.9 for year 1 with 3% escalation till year 15, from 16th to 25th year RTC-I Wind 235.6 Karnataka Q3 FY24 SECI
Slide 38: Thank You
Thank You For further inquiries please contact IR@renew.com 38