Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q2 2023 Earnings Presentation
36 slides from Renew Energy Global's earnings presentation, Nov 16, 2022
Slide 1: Q2 FY23 Earnings Review
Q2 FY23 Earnings Review Nov 16, 2022 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 of Recent Developments 02 Q2 FY 23 Highlights 03 Sustainability And ESG 04 Guidance 05 Appendix 3
Slide 4: Highlights
Highlights • H1 Revenue and Adjusted EBITDA grew more than 20% YoY Core Operations on H1 FY23 Earnings • In line with targets (excluding M&A which is in process) track On track for meaningful • End Q2 FY23 DSO improved 41 days YoY DSO’s improve • AP has made 4 payments so far (Aug’22 – Nov’22) out o
Slide 5: 1GW New PPAs Signed In Q2 FY23; Corp. PPA Sees Continued Growth
1GW New PPA’s Signed In Q2 FY23; Corp. PPA Sees Continued Growth PPAs Signed In Q2 FY231 Signed new PPAs worth 1GW in Q2 ( Peak Power + SECI XI + Corp. PPA) for a total gross portfolio of 13.4GW Total Corp PPA portfolio at ~1.5 GW (Commissioned 628 MW + balance CoD in FY23 / FY24) Expect to reach 4
Slide 6: Pursuing Higher Return Opportunities In RTC & Hybrid Bids
Pursuing Higher Return Opportunities In RTC & Hybrid Bids ~22 GW1 of Current Tenders;~60% from RTC + Storage + ReNew’s focus and differentiated advantage Corp. PPA (Internal Est. as of Oct’22) Plain Vanilla Intelligent Corporate Green Renewable Energy PPAs Hydrogen Energy Solutions Corporate 5 – 6 (
Slide 7: Managing Capex Inflation Risk & Ensuring Security of Supply
Managing Capex Inflation Risk & Ensuring Security of Supply Limited Capex Sensitivity To Changes In Price Wind: WTG cost (~70% of capex) already tied up through pre-signed contracts 2.9 0.2 Solar: Only 3-4% impact to capex for every 10% change in module price Capital Discipline: returns must be abov
Slide 8: Q2 FY23 Highlights
02 Q2 FY 23 Highlights 8
Slide 9: DSO Improvement On Track
DSO Improvement On Track Sept 30, 2022 DSO improved by 41 days YoY to 231 (similar trend continued DSO(4) Days Contribution Offtaker till Nov’22). DSOs did not rise seasonally and improved YoY - as DISCOMs to DSO cleared past dues. Central Government(2) 8 2 Corporates 24 2 AP DISCOM has paid 4 insta
Slide 10: Robust Growth In H1 Adjusted EBITDA And Cash Flow To Equity
Robust Growth In H1 Adjusted EBITDA And Cash Flow To Equity Key Highlights Key metrics (INR Bn) Total Portfolio YoY 47.4 • Total Portfolio (commissioned and committed) of ~13.4 GWs(1) Growth • ~7.7 GWs commissioned (1) + 24% • ~5.7 GWs committed (1) Q2’22 EBITDA benefited from Carbon • ~98.5% of por
Slide 11: $224 Mn Adj. EBITDA In Q2 FY23
$224 Mn Adj. EBITDA In Q2 FY 23 YoY % growth Adjusted Q2 FY 23 Adjusted Q2 FY 23 Q2 FY 22A Q2 FY 22 Adjustments Q2 FY 23 Vs Million (INR) (INR) (USD) (INR) (USD) (INR) (USD) Q2 FY 23 Adj Comments Revenue from contracts with 16,990 19,560 240 19,560 240 15% customers Timing impact: ~ majority of FY23
Slide 12: Capex & Debt Maturity Covered by Cash Flows
Capex & Debt Maturity Covered by Cash Flows Strong cash flow, financings to cover debt maturities, Capex till Q2 FY23 Hold Co. Debt down 40% QoQ - replaced by Project debt FY25(1) INR Bn INR Bn 457 – 520 455 467 53 7% 12% (385) – (414) Debt Maturity (excludes regular Debt (60) – (64) 244 – 277 New D
Slide 13: Debt Profile
Debt Profile (73% Fixed Rate; ~60% Maturity >4 years, ~50% In USD – Fully Hedged) By Debt Type By Interest Rate Variable Rate Hold Co. Debt 27.5% Project debt 7% Fixed Rate 93% 72.5% 100 bp increase only impacts our FY23 CFe by ~2% By Currency(1) By Maturity 0 - 2 years 24% INR US Dollars 48% 52% (f
Slide 14: Sustainability And ESG
04 Sustainability And ESG 14
Slide 15: Key Highlights From Q2 FY22-23
Key Highlights From Q2 FY22-23 Release of Sustainability Report 2021-22 Impacting Communities With Sustainability Initiatives Report alignment • In alignment with GRI, SASB and TCFD, • Externally assured by DNV Key highlights of the report • ReNew has generated clean electricity (14,263 GWh) enough
Slide 16: Bolstering Our ESG Targets
Bolstering Our ESG Targets Our ESG targets Update for Q2 for FY 22 Status Emissions To be validated as carbon neutral Validated as ‘carbon neutral’ for our scope 1 and 2 emissions Completed (scope 1 & 2) annually till 2025 Develop science-based targets (scope • Submitted target to SBTi for validatio
Slide 17: Guidance
06 Guidance 17
Slide 18: Guidance
Guidance Adjusted EBITDA (reduced for minority stakes)(1)(6) Net Debt(2)(6) & Leverage(3) At Operating Capacity Of 7.7 GWs And 13.4 GWs (reduced for minority stakes) INR 89 – 94 bn INR 453 - 477 Bn INR 213 – 226 / share INR 66 – 69 bn INR 58 – 62 bn INR 159 – 165 / share INR 315 - 333 Bn INR 55 bn I
Slide 19: Appendix
07 Appendix 19
Slide 20: $472 Mn Of Adjusted EBITDA In H1 FY23
$472 Mn Of Adjusted EBITDA In H1 FY 23 YoY % growth Adjusted H1 FY 23 Adjusted H1 FY 23 H1 FY 22A H1 FY 22 Adjustments H1 FY 23 Vs Million (INR) (INR) (USD) (INR) (USD) (INR) (USD) H1 FY 23 Adj Comments Revenue from contracts with 32,507 41,734 513 41,734 513 28% customers Timing impact: ~ majority
Slide 21: Weather Impact Of INR 2.7 Bn In Q2 FY23 Low Wind PLFs
Weather Impact Of INR 2.7 Bn In Q2 FY23 Low Wind PLFs - In Line With All India Wind Pattern All India Q2 PLFs flattish QoQ in Q2 FY23 (unlike historical trend) • ReNew Wind PLFs were in line with all India trend (flat QoQ) 45.0% • Despite lower generation in Q2 we met our H1 internal budgets given b
Slide 22: Operating Performance And Seasonality
Operating Performance And Seasonality As of and for the year ended 31 March 2020 2021(5) 2022 6M FY 23 Wind Solar(4) Wind Solar(4) Wind Solar Wind Solar Commissioned capacity (GW) 3.24 2.18 3.59 2.01 3.78 3.69 3.89 3.71 Weighted average operational 3.11 1.88 3.31 2.16 3.66 2.78 3.83 3.69 capacity(1)
Slide 23: Counterparty Overview And Asset Breakdown
Counterparty Overview And Asset Breakdown Total Portfolio Total 13.4 GW Technology Solar 6.9 GW Hydro 0.1 GW Wind 6.4 GW Project Stage Commissioned Committed Commissioned Commissioned Committed 3.7 GW 3.2 GW 0.1 GW 3.9 GW 2.5 GW PPA Counterparty Centre State 3rd Party Centre State 3rd Party 3.7 GW 2
Slide 24: ReNew's Outstanding Bonds
ReNew’s Outstanding Bonds Face Value Avoided emissions (t CO2/year) Bond Type Issue Date Maturity Coupon Green Bond (Mn $) attribute to the bonds Holdco Issuance Jan 2020 Mar 2027 450 5.875% Yes 577,095 Restricted Group Oct 2020 Apr 2024 325 5.375% Yes 773,969 Restricted Group Feb 2021 Feb 2027 460
Slide 25: Track Record Of Efficient Capital Raise From Diverse Sources Of Funding
Track Record Of Efficient Capital Raise From Diverse Sources Of Funding Outstanding Funding (30th September 2022)(1) Raised US$3.5bn+ In Bond Offerings Through Eight USD Bond Offerings At Competitive Rates Working Reduction in weighted Capital average cost of USD Loan INR Bonds 2.2% 6.67% bonds 3.3%
Slide 26: Updated Share Holders And Diluted Shares
Updated Share Holders And Diluted Shares Economic Shareholding1 Total Shares Outstanding For ReNew Energy Global PLC 35.6% 36.8% Shares (Mn) Particulars 26.8% Class A Shares 264 24.6% Class B Shares3 - 13.6% 13.8% 13.6% 14.2% 6.7% 6.9% Class C Shares 118 3.6% 3.8% Class D Shares3 - GS CPPIB ADIA JER
Slide 27: Expected quarterly additions of installed capacity
Expected quarterly additions of installed capacity 0.8 GW 0.2 GW 2.1 GW 1.5 GW 0.2 GW 0.1 GW 0.8 GW 13.4 GW Wind – 0.2 GW Wind – 0.1 GW Wind – 0.05 GW Wind – 1.1 GW Wind – 0.3 GW Wind – 0.3 GW Solar – 0.1 GW Solar – 0.1 GW Solar – 0.05 GW Solar – 0.4 GW Solar – 1.8 GW Solar – 0.5 GW Solar – 0.2 GW 7
Slide 28: New Acquisition and Partnership
New Acquisition and Partnership Definitive documents signed to Partnership with Norfund and KLP to acquire shares in 3E, one of Europe’s co-invest in ReNew’s transmission leading RE asset performance projects management platforms Transaction entails acquiring 40% shareholding now and additional 40%
Slide 29: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,676 MW) 23.1MW: APPC Rate + escalation linked to State APPC tariff; 2.1MW: GUVNL (23.1), 23.1 MW: 25 years; Jasda
Slide 30: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,676 MW) Ostro-Lahori 92.0 Madhya Pradesh Mar-16 5.92 MPPMCL 25 Ostro-Amba 66.0 Madhya Pradesh Mar-16 5.92 MPPMCL
Slide 31: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,676 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 3
Slide 32: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) 5.98 for year 1 with 3% escalation till year 10, 10th year tariff Cumbum 21.0 Andhra Pradesh Mar-16 APSP
Slide 33: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,296 MW) SECI Raj 110.0 Rajasthan Feb-21 2.49 SECI 25 GUVNL 105.0 Gujarat Apr-21 2.68 GUVNL 25 SECI III 300.0 Raj
Slide 34: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Hydro Power Project (99 MW) Acquisition - L&T Hydro 99.0 Uttarakhand Dec-20 Third Party Project Type Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) P
Slide 35: Project Level Details (as of November 01, 2022)
Project Level Details (as of November 01, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (407 MW) Otha(7) 11.0 Gujarat Q3 FY24 3.43 Grasim 25 Other Corporate Projects(7) 370.7 Multiple Q2 FY 24(10) 3.25 – 3.95 3r
Slide 36: Thank You
Thank You For further inquiries please contact IR@renewpower.in 36