Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q4 2023 Earnings Presentation
37 slides from Renew Energy Global's earnings presentation, Jun 7, 2023
Slide 1: Q4 FY23 Earnings Review
Q4 FY23 Earnings Review June 7, 2023 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 3
Slide 4: Highlights
Highlights FY’24 auction pace up 3x+ to 50 GW with DSO improves more than expected; largest increase being in complex bids lowest DSO in 3 years and expect where ReNew has competitive edge improvement to continue FY24 EBITDA/share: up to ~10% growth YoY Announcing asset recycling deal with FY25 EBIT
Slide 5: A Look Back at the Year
A Look Back at the Year ❖ Development of the platform - Hiring for future growth: employees rose to ~2,300 (select build-up of bench strength across key areas) - Six senior leadership hirings, including CFO, Chief Legal Counsel, Chief Growth Officer, Head of Manufacturing business, Chief Digital Off
Slide 6: Recycle Capital: Continued Progress
Recycle Capital: Continued Progress ▪ PETRONAS’s clean energy subsidiary, Gentari, acquired a 49% stake in the Peak Power project ▪ ReNew will invest approximately INR 3,130 million Asset recycling (~USD 38 million1) for a 51% stake in the project I. Improves IRRs significantly II. Reduces leverage
Slide 7: Significant Recent Market Expansion with Higher IRR Opportunity
Significant Recent Market Expansion with Higher IRR Opportunity In April, MNRE announced an accelerated auction plan for 50 GW per annum GW auctioned (1) 50 45 40 ▪ ~3x increase in pace of auctions from past 35 To be announced as per MNRE circular three years and auctions for complex 30 projects saw
Slide 8: ReNew’s Competitive Advantage – Complex Auctions
ReNew’s Competitive Advantage – Complex Auctions Wind capabilities provide ReNew advantages in current market: Daily RTC project generation profile versus demand peak(1)(2) Wind critical ▪ Large scale in-house wind EPC vs outsourcing for peers ▪ Actual wind mast data versus estimation for peers for
Slide 9: Execution: Construction Pipeline and Manufacturing
Execution: Construction Pipeline and Manufacturing Projects under construction ▪ Expect 1.75 –2.25 GWs to be commissioned during FY24; projects expected to be mostly commissioned in Q4 ▪ Peak Power and Round the Clock projects, largest contributors to FY25 growth, in advanced stages of development ▪
Slide 10: Financial Highlights
02 Financial Highlights 10
Slide 11: Robust YoY Growth in FY23
Robust YoY Growth in FY23 Key Highlights Key metrics (INR bn) 89.3 Total Portfolio YoY • Total Portfolio (commissioned and committed) of ~13.7 GW1 Growth • ~8.0 GW commissioned(1) 29% Improvement • ~5.7 GW committed(1) 69.2 in receivables • Only 1% of portfolio with Letter of Award awaiting PPA cont
Slide 12: $754 mn Adj. EBITDA for FY23, 12% YoY growth
$754 mn Adj. EBITDA for FY23, 12% YoY growth YoY % growth Adjusted FY23 Adjusted FY23 FY22 Adj Million FY22 Adjustments FY23 Comments Vs (INR) (INR) (USD) (INR) (USD) (INR) (USD) FY23 Adj Revenue from contracts with 59,349 78,223 952 - - 78,223(1) 952 32% customers Carbon Credit sales decreased 70%
Slide 13: Continued Strong DSO Improvement
Continued Strong DSO Improvement March’23 DSO(4) improved by 74 days YoY to 138 (vs. 212 days in March’22) as DSO(4) Days Contribution Offtaker DISCOMs cleared past due accounts. Reduction in DSO contributed ~$84mn(5) to cash to DSO flow during Q4 FY23 Central Government(2) 6 2 Expect further improv
Slide 14: Balance Sheet Summary
Balance Sheet Summary March 31, March 31, March 31, 2022 2023 2023 INR milions INR millions US$(3) millions Cash, bank and cash equivalents(1) 80,437 77,022 937 Property plant and equipment 437,593 537,934 6,545 Current liabilities: Interest-bearing loans and borrowings 14,485 42,523 517 Current por
Slide 15: Sustainability and ESG
03 Sustainability and ESG 15
Slide 16: Significant Highlights From Q4 FY23
Significant Highlights From Q4 FY23 Sustainability @ReNew Impacting Communities With Sustainability Initiatives SBTi Validates ReNew’s Net-Zero Target by 2040 • ReNew’s Net Zero target validated by Science Based Targets initiative (SBTi) • One of the first pureplay renewable energy companies to rece
Slide 17: Guidance
04 Guidance 17
Slide 18: Guidance
Guidance Adjusted EBITDA(1)(5) Net debt*(2)(5) to Adj. EBITDA levels INR 89 – 94 bn* INR 221 – 233/share INR 60 – 66 bn INR 62 bn INR 149 – 164/share INR 153/ share 1.2 X 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 1
Slide 19: Appendix
05 Appendix 19
Slide 20: $146 mn Adj. EBITDA for Q4 FY23
$146 mn Adj. EBITDA for Q4 FY23 YoY % growth Adjusted Q4 FY23 Adjusted Q4 FY23 Q4 FY22 Adj Million Q4 FY22 Adjustments Q4 FY23 Comments Vs (INR) (INR) (USD) (INR) (USD) (INR) (USD) Q4 FY23 Adj Revenue from contracts with 14,946 23,319 284 - - 23,319 284 56% customers Other operating income 466 133 2
Slide 21: Adj. EBITDA for FY23 Walk
Adj. EBITDA for FY23 Walk For the three months ended March 31, For the year ended March 31, 2022 2023 2023 2022 2023 2023 (Audited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (INR) (INR) (USD) (INR) (INR) (USD) Loss for the period (3,555) 74 1 (16,128) (5,029) (61) Less: Finance incom
Slide 22: Cash Flow to Equity
Cash Flow to Equity For the three months ended March 31, For the year ended March 31, 2022 2023 2023 2022 2023 2023 (Audited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (INR) (INR) (USD) (INR) (INR) (USD) Adjusted EBITDA 12,787 12,010 146 55,144 62,004 754 Add: Finance income and fair
Slide 23: Debt Profile (~70% Maturity >3 years, 50% Amortising)
Debt Profile (~70% Maturity >3 years, 50% Amortising) By Debt Type By Source By Currency(2) Secured Loan INR from Fis 53% 36% Secured Bank Loan Hold Co. Debt 27% 14% US Dollars 47% (hedged) Senior Overseas (1) Working Capital Loan Project debt Green Bonds 86% 32% INR Bonds 3% 2% By Project Status (B
Slide 24: Weather Impact
Weather Impact All India Renewable Wind Energy PLFs (FY 2019 – FY 2023) FY23 Weather impact of INR 4.0 bn versus normal 45.0% 40.0% ReNew wind PLFs in line with All-India trend 35.0% 34.8% 36.3% 32.7% 30.8% 30.0% 16.7% 20.0% 18.3% 14.7% 25.0% 27.0% 27.8% 20.0% Q1 Q2 Q3 Q4 FY22 FY23 15.0% 13.3% 10.7%
Slide 25: Operating Performance and Seasonality
Operating Performance and Seasonality As of and for the year ended 31 March, 2023 2020 2021(5) 2022 2023 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 3.97 3.91 Weighted average operational 3.12 1.88 3.32 2.16 3.66 2.78 3.88 3.72 capacity(
Slide 26: Counterparty Overview and Asset Breakdown
Counterparty Overview and Asset Breakdown Total Portfolio Total 13.7 GW Technology Solar 7.2 GW Hydro 0.1 GW Wind 6.4 GW Commissioned Committed Commissioned Commissioned Committed Project Stage 3.8 GW 3.3 GW 0.3 GW 3.9 GW 2.4 GW PPA Counterparty Centre State Corporate Centre State Corporate 3.7 GW 2
Slide 27: ReNew’s Outstanding Bonds
ReNew’s Outstanding Bonds Outstanding Avoided emissions (t CO2/year) attribute Bond Type Issue Date Maturity Coupon Green Bond (Mn $) to the bonds Holdco Issuance Jan 2020 Mar 2027 270 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 28: 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% 22.0% Class A Shares 250 Class B Shares(3) - 3.9% 52.2% 3.64% Class C Shares 118 7.2% 6.65% Class D Shares(3)
Slide 29: Bolstering Our ESG Targets
Bolstering Our ESG Targets Our ESG targets Update for Q4 for FY 22 Status Emissions To be validated as carbon neutral Annual assurance exercise initiated In progress (scope 1 & 2) annually till 2025 Calculation of Scope 1, 2 and 3 GHG • Assurance for FY22-23 initiated In progress Environment emissio
Slide 30: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) 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 31: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) 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 Ost
Slide 32: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) 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 Gu
Slide 33: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) 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 APSPDCL 25
Slide 34: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) 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 Rajasthan
Slide 35: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) Project Type Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Firm Power Committed Projects (1,704 MW) Wind 322.0 Q4 FY24 PP-I (7) Karnataka Off Peak - 2.88; Peak - 6.85 SECI 25 Solar 81.0 Wind 601.0 Karnataka 2.9
Slide 36: Project Level Details (as of May 15, 2023)
Project Level Details(as of May 15, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (617 MW) 327 MW Acquisition 25.2 Karnataka Jun-12 4.00 3rd Party 20 Other Corporate Projects(7) 592.0 Multiple H2FY24-H2FY25 2.80
Slide 37: Thank You
Thank You For further inquiries please contact IR@renew.com 37