Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q3 FY2019 Earnings Presentation
28 slides from Azure Power Global's earnings presentation, Feb 13, 2019
Slide 1: Fiscal Third Quarter 2019 Ended December 31, 2018 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 Third Quarter 2019 Ended December 31, 2018 Earnings Presentation February 13, 2019
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 Company and Project Update Industry Update Fiscal Third Quarter 2019 Results Reiterating FY 2019 Guidance; Providing FY 2020 Guidance 3 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 4: 4 | Copyright © 2019 Azure Power | www.azurepower.com
4 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 5: Leading Solar Platform in Fast Growing, Large Market
Leading Solar Platform in Fast Growing, Large Market 3,059 MWs 2,848 MWs 211 MWs ~500 Total Portfolio Utility-Scale Rooftop Households Projects Projects Electrified with Azure M Power ~1.9 GW Contracted Pipeline with Among the Highest Tariffs in the Indian Solar Market(1) 1) Compares tariffs with co
Slide 6: Key Achievements
Key Achievements Highlights Robust Outlook 3,059 MWs portfolio, 94% increase from 3Q’18. Well diversified portfolio with strongest offtake credit across 24 Differentiated platform in fastest growing states with pipeline tariff 18% higher than the lowest bid in solar market globally (1) the market La
Slide 7: EBITDA Expansion & Leveraging Platform Driving Profit Growth
EBITDA Expansion & Leveraging Platform Driving Profit Growth Substantial, Contracted Revenue Interest Costs and G&A Lower as % of Revenue Growth to Portfolio Run-Rate(1) 100% 90% $343 80% Revenues (US $ Million) 70% Contracted 60% 50% $134 40% $118 Under Construction 30% $65 20% $47 Operating 10% 0%
Slide 8: Azure's Integrated Approach Enhances Project Returns
Azure’s Integrated Approach Enhances Project Returns Superior Returns Returns Development Construction Operations ◼ Achieved an 86% BOS cost decline since inception ◼ Over 1.1GW operational portfolio, one of the largest in ◼ 9,000+ acres of total land developed the India solar industry ◼ Over US$ 1.
Slide 9: Pipeline of ~1.9 GWs: Key Characteristics
Pipeline of ~1.9 GWs: Key Characteristics 85% of the pipeline is with A and 64% of the pipeline is with GoI Rajasthan (1,230 MW) above rated off-takers (sovereign) backed entities SECI ISTS 600 MW Indian Railways & Assam (90 MW) NTPC ISTS 300 MW A to AAA GoI Entities APDCL 90 MW 85% MSEDCL ISTS 130
Slide 10: Strong Presence Across 600+ Cities Through Azure Roof Power
Strong Presence Across 600+ Cities Through Azure Roof Power Azure Roof Power operational portfolio grew by 160% from 33 MWs to 86 MWs(1) • Market leading portfolio of 211 MW across 600+ cities and 4,000+ Roofs • Constructed 53MWs across more than 1,000 Roofs Pan India in FY’19(1) • Azure Roof Power
Slide 11: Projects Under Construction On Time or Ahead of Schedule
Projects Under Construction On Time or Ahead of Schedule Rooftop Projects Rajasthan 119 MWs 200 MWs • Off-taker: Multiple • Off-taker: SECI (AA+)(1) • PPA COD : Multiple • PPA COD: Q2 CY’19 • No of Sites : ~2,000 roofs • No. of Sites: 4 FY 2019 Gujarat Total Sites: 14 sites and ~2,000 roofs 120MWs C
Slide 12: World Class ESG Standards Are Core To Our Business
World Class ESG Standards Are Core To Our Business Environment Social Governance • Till date, our facilities have avoid • Generate approx. 4.65 • Strong Governance & Disclosure as per more than 3.Mn tons of CO2 thousand local jobs. (Direct NYSE & SGX Standards • Water Conservation through 650, Indir
Slide 13: Industry and Regulatory Update
Industry and Regulatory Update Strong Demand for Solar Continues Industry Update Solar continues to be the cheapest source of power in India and New regulation for land development for solar power projects adopted in continues to take market share. 54% all capacity additions in CY18 were Assam solar
Slide 14: Effective Strategy & Strong Execution Drives 94% YoY Increase in Megawatts
Effective Strategy & Strong Execution Drives 94% YoY Increase in Megawatts Operating and Committed 1,169 MW Operating 3,059 MW Operating & Committed US$ 34.9mn Q3 Revenue 45% increase(1) 94% increase(1) 40% increase(1) 434.8mn kWh Q3 Generation US$0.64mn Project Cost/MW (DC) US$343.4mn Portfolio Rev
Slide 15: Azure Power delivered 50% Adjusted EBITDA growth in Q3 FY'19
Azure Power delivered 50% Adjusted EBITDA* growth in Q3 FY’19 Three Months Ended December 31, Nine Months Ended December 31, % Change (in thousands) (in thousands) Q3FY’19 vs Q3FY’18 2017 2018 2018 2017 2018 2018 INR INR US$ INR INR US$ Revenue 1,739,850 2,430,776 34,935 5,441,579 7,079,008 101,739
Slide 16: A Growing Balance Sheet with a Strong Liquidity Position
A Growing Balance Sheet with a Strong Liquidity Position March 31, 2018 December 31, 2018 (in thousands) (in thousands) INR INR US$ Cash, Cash Equivalents and Current 9,730,099 17,451,023 250,805 Investments Property, Plant & Equipment, Net 56,580,700 70,409,413 1,011,920 Total Debt, Net of Hedging*
Slide 17: US$ 612 Million of Available Liquidity
US$ 612 Million of Available Liquidity (December 31, 2018) Cash (incl. current restricted) $330 CDPQ ROFO Right of first offer to provide minority equity financing to fund the development or acquisition of new power projects of $178 Undrawn our subsidiaries Debt Capacity $104 Working Capital _______
Slide 18: Reiterating FY'19 Guidance and Providing FY'20 Guidance
Reiterating FY’19 Guidance and Providing FY’20 Guidance FY 2019 FY 2020 No Change to Guidance (1) INR 12,770 – 13,350 million(2) of Revenue for FY’20 1,800 – 1,900 MWs Operating by March 31, 2020 __________________________ 1) The Company continues to expect to have between 1,300 – 1,400 MWs operatio
Slide 19: Appendix
Appendix 19 | Copyright © 2019 Azure Power | www.azurepower.com
Slide 20: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. The Company presents Adjusted EBITDA as a supplemental measure of its performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance
Slide 21: Reconciliation of Non GAAP Measures to Comparable GAAP measures
Reconciliation of Non GAAP Measures to Comparable GAAP measures Three Months Ended December 31, Nine Months Ended December 31, (in thousands) (in thousands) 2017 2018 2018 2017 2018 2018 INR INR US$ INR INR US$ Net Profit /(loss) (136,162) 165,339 2,376 (1,169,834) (102,463) (1,472) Income tax expen
Slide 22: Projects Commissioned - Utility
Projects Commissioned - Utility As of January 15, 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 Q4 2009 2 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Punjab 2.1 Q3 2014 15 15 7.67
Slide 23: Projects Commissioned– Utility and C&I
Projects Commissioned– Utility and C&I As of January 15, 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 Q3 2016 10 11 8.39 North & South Bihar Power Distribution Company Ltd 25 Punja
Slide 24: Under Construction Projects –Utility and C&I
Under Construction Projects –Utility and C&I As of January 15, 2019 Expected Commercial PPA Capacity Tariff Duration of PPA in Project Names Off taker Operation Date(1) (MW) (INR/kWh) Years(3) Under Construction Gujarat 2 Q1 2019 140 2.67 Gujarat Urja Vikas Nigam Limited 25 Karnataka 4.1 Q2 2019 50
Slide 25: Project Debt Schedule (as of December 31, 2018)
Project Debt Schedule (as of December 31, 2018) Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(1) Name of Project INR US$ (2) Punjab 1 174,000 2,501 Fixed INR 2022 Punjab 2 1,699,000 24,418 Fixed INR 2022 Gujarat 1 927,560 13,331 Fixed INR 2022 Rajasthan 1 739,93
Slide 26: Project Debt Schedule (as of December 31, 2018)
Project Debt Schedule (as of December 31, 2018) Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(2) Name of Project INR US$ (5) Andhra Pradesh 2 5,566,695 80,004 Floating INR 2036 Uttar Pradesh 3 1,614,100 23,198 Floating INR 2034 2034 Andhra Pradesh 3 2,270,046 32
Slide 27: 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 28: Affordable Solar Power for Generations
Affordable Solar Power for Generations Excellence | Honesty | Social Responsibility | Entrepreneurship 28 | Copyright © 2019 Azure Power | www.azurepower.com