Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q1 FY2020 Earnings Presentation
19 slides from Azure Power Global's earnings presentation, Aug 12, 2019
Slide 1: Fiscal First Quarter 2020 Earnings Presentation
3 GW+ Pan India portfolio of solar assets in 24 States India’s first private grid connected MW solar plant India’s first distributed rooftop solar project over one megawatt Issued India’s first solar Green Bond Fiscal First Quarter 2020 Ended June 30, 2019 Earnings Presentation August 12, 2019 1 | C
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This information contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, including statements regarding our future financial and operating guidance, op
Slide 3: Agenda
Agenda New Management Commitment to Capital Discipline Company Update Industry Update Fiscal First Quarter 2020 Results Reiterating FY 2020 Guidance 3 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 4: New Management Commitment to Capital Discipline
New Management Commitment to Capital Discipline Financial discipline is the foundation of our success 1 Delivery of current pipeline on time and on budget 2 Enhance returns on invested capital with efficiency gains and cost optimisation 3 Optimize capital structure to lower risk and cost of capital
Slide 5: 3,351 MW Portfolio Capacity, With 83% Portfolio in High Radiation Zone
3,351 MW Portfolio Capacity(1), With 83% Portfolio in High Radiation Zone ~83% in High Radiation Zone(2) ~14%(2) in Mid Radiation Zone Focus is on Strong Counterparty Credit Punjab 214 MW A to AAA Rajasthan 7% 295 MW Uttar Pradesh 75% BBB- to BBB+ 100 MW 1,380 MW 18% ~82% of the portfolio is Gujarat
Slide 6: EBITDA Expansion & Economies of Scale Driving Profit Growth
EBITDA Expansion & Economies of Scale Driving Profit Growth Growing Portfolio with Strong Contracts in Place Substantial, Contracted Revenue Growth to Portfolio Run-Rate(1)(2) 3,900 500 3,351 $376(4) 1,020 Revenues (US $ Million) 2,600 222 Contracted 1,609 MWs 1,300 $158 Under Construction $144 $112
Slide 7: Industry and Regulatory Update
Industry and Regulatory Update Solar PPA contracts have repeatedly been Industry Update upheld in the highest courts of India Payment security mechanism – Ministry of Power has mandated Curtailment or PPA cancellation would be in direct conflict with GoI’s Discoms to open and maintain adequate Lette
Slide 8: Continued Growth in Fiscal Q1 FY'20
Continued Growth in Fiscal Q1 FY’20 1,609 MW Operating 3,351 MW Operating & Committed US$ 49.2 mn(4) Revenue 59% increase(1 ) 57% increase(1) 40% increase(1) 700.1 mn kWh Generation US$ 0.58 mn(4) Project Cost/MW (DC) US$ 376.4mn(4) Portfolio Revenue Run 75 % increase(1) 9% reduction(1)(3) Rate(2) _
Slide 9: Azure Power Delivered 40% Revenue Growth in Q1 FY'20
Azure Power Delivered 40% Revenue Growth in Q1 FY’20 Quarter Ended June 30, % Change (in thousands) Q1 FY’20 vs Q1 FY’19 2018 2019 2019 INR INR US$ Operating Revenue 2,422,539 3,389,313 49,177 40% Cost of Operations 218,230 296,949 4,309 36% # General & Administrative Expenses 248,650 644,658 9,354
Slide 10: A Growing Balance Sheet
A Growing Balance Sheet March 31, 2019 June 30, 2019 (in thousands) (in thousands) INR INR US$ Cash, Cash Equivalents and Current Investments* 10,544,989 11,470,689 166,435 Property, Plant & Equipment, Net 83,444,529 86,705,503 1,258,060 Net Debt# 59,006,817 68,741,690 997,414 ______________________
Slide 11: Reiterating FY'20 Guidance
Reiterating FY’20 Guidance 1,800 – 1,900 MWs Operating INR 12,770 – 13,350 million(1) by March 31, 2020 of Revenue for FY’20 _________________________ 1) US$ 185-194 Mn (at June 28, 2019 exchange rate- INR68.92 to US$1) 11 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 12: Appendix
Appendix 12 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 13: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. The Company presents Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with USGAAP GAAP and should not be viewed as an alternative to USGAAP GAAP measures
Slide 14: Reconciliation of Non-GAAP Measures to Comparable GAAP Measures
Reconciliation of Non-GAAP Measures to Comparable GAAP Measures Quarter Ended June 30, (in thousands) 2018 2019 2019 INR INR US$ Net income 29,803 90,157 1,307 Income tax expense 94,581 123,749 1,796 Interest expense, net 1,073,440 1,560,094 22,636 Depreciation and amortization 553,609 623,448 9,046
Slide 15: Projects Commissioned - Utility
Projects Commissioned - Utility As of June 30, 2019 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in (MW) (MW) (INR/kWh) Date(1) Years Operational - Utility Punjab 1 (3) Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Punjab 2.1 (3) Q3 2014 15 15
Slide 16: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As of June 30, 2019 Commercial Duration PPA Capacity DC Capacity Tariff Project Names Operation Off taker of PPA in (MW) (MW) (INR/kWh) Date(1) Years Operational – Utility Bihar 1 (4) Q3 2016 10 11 8.39 North & South Bihar Power Distribution Company Ltd 25 Punj
Slide 17: Under Construction and Committed Projects –Utility and C&I
Under Construction and Committed Projects –Utility and C&I As of June 30, 2019 Expected Commercial PPA Capacity Tariff Duration of PPA in Project Names Off taker Operation Date(1) (MW) (INR/kWh) Years(3) Under Construction Rajasthan 5(2, 3) Q3 2019 50 2.48 Solar Energy Corporation of India 25 Mahara
Slide 18: Glossary of Select Terms
Glossary of Select Terms Accelerated Depreciation – Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and the rem
Slide 19: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 19 | Copyright © 2019 Azure Power | www.azurepower.com