Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q1 2023 Earnings Presentation
35 slides from Renew Energy Global's earnings presentation, Aug 19, 2022
Slide 1: Q1 FY 23 Earnings Review
Q1 FY 23 Earnings Review August 19, 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 Q1 FY 23 Highlights 03 Sustainability And ESG 04 Guidance 05 Appendix 3
Slide 4: 1Q FY 23 Earnings Review
01 1Q FY 23 Earnings Review August 19, 2022 4
Slide 5: Execution on track; Ability to deliver superior returns
Execution on track; Ability to deliver superior returns • ~50% growth in revenue and adjusted EBITDA, doubling of CFe this quarter over Q1 FY22 Strong growth in 1Q FY23 • Total portfolio of 13.2 GWs, up 33% since Mar’21, and nearly 95% with PPAs FY 23 on track • ~95% of expected FY 23 EBITDA from op
Slide 6: Strong liquidity position; improving collections
Strong liquidity position; improving collections • Strong cash position of >$900 mn expected on completion of 13.2 GWs (includes all refi + cap ex) • No issuance of shares in current plans: Capital recycling (includes Farm downs, JV stake / asset sales) provide additional balance sheet resilience. A
Slide 7: Corporate PPAs: Continues to grow, with large untapped market
Corporate PPAs: Continues to grow, with large untapped market 25GW addressable market potential growing at double digits annually What’s boosting the Corporate PPA market? ReNew’s Corporate Tariff Lower Cost Than Other Options INR/kWh • ReNew’s corporate tariffs are cheaper for customers than altern
Slide 8: Corporate PPAs: Enhances ReNew's growth opportunities
Corporate PPAs: Enhances ReNew's growth opportunities ReNew’s Corporate PPAs expected to contribute 25 - 30% of future growth • Total ~1.3 GWs Corporate PPA portfolio of which 616 MWs is Quarterly Addition of Corporate PPA Projects1 commissioned as of 1Q FY23 4% 4% 6% 8% 8% 10% • 341 MWs of Corporat
Slide 9: Corporate PPAs: ReNew has advantages in high return segment
Corporate PPAs: ReNew has advantages in high return segment ReNew has competitive advantages in Corporate PPA market Market leader in Corporate PPA market1 • Leading market share, nearly twice as large as next largest competitor 40% (based on closure of PPAs) 34% • Corporate Governance is critical:
Slide 10: Strong liquidity position
Strong liquidity position Cash balance expected to be over $900mn once 13.2 GWs is completed Strong ending cash balance after 13.2 GWs built, debt maturities INR Bn Cash flow from 7.6 GWs to 13.2 GWs Capex locked in • Current plans consider today’s prices INR 55 bn of near-term debt maturities out o
Slide 11: Capital recycling adds to B/S resilience
Capital recycling adds to B/S resilience Capital recycling provide additional resilience to the balance sheet and can be flexed based on market conditions. Record of capital recycling: Raised ~$450 mn of equity over past 18 months through asset sale/ JV/ farm downs Current strong interest in ReNew’s
Slide 12: Making progress in collections
Making progress in collections AP DISCOM (~42% of total past due receivables1), has agreed to pay past due bills over the next 12 months, with first payment already received in early Aug’22. DSO improves YoY to 232 days (vs. 262 days in 1Q FY22). First time in last three years that 1Q DSO improved Y
Slide 13: Q1 FY23 Highlights
02 Q1 FY23 Highlights 13
Slide 14: Strong growth in Q1 FY 23
Strong growth in Q1 FY 23 Key Highlights Key metrics (INR Mn) Total Portfolio 25,007 • Total Portfolio (commissioned and committed) of 13.2 GWs(1) • ~1,875 MWs of utility scale and 136 MWs of corporate PPAs have been signed this quarter. 20,157 • 7,636 MWs commissioned capacity(1) 50% YoY EBITDA • 5
Slide 15: 50% YoY growth in Adjusted EBITDA in Q1 FY 23
50% YoY growth in Adjusted EBITDA in Q1 FY 23 YoY % growth Adjusted Q1 FY 23 Adjusted Q1 FY 23 Q1 FY 22 Adj Q1 FY 22 Adjustments Q1 FY 23 Vs Million (INR) (INR) (USD) (INR) (USD) (INR) (USD) Q1 FY 23 Adj Comments Revenue from contracts with 15,517 22,174 281 22,174 281 43% customers Other operating
Slide 16: Limited interest rate sensitivity; Refi opportunity at lower rates
Limited interest rate sensitivity; Refi opportunity at lower rates Raised new debt at 8.4% in Q1 FY 23 Vs. current avg. debt cost* of ~8.9% India lending environment remains supportive Became the first Indian renewable energy company to refinance $525 mn Variable Rate 26% 1Q'23 Re-Financing details
Slide 17: Sustainability And ESG
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Slide 18: Leading the way for ESG in the RE sector and beyond
Leading the way for ESG in the RE sector and beyond Amongst the first in the 216,533 KL (approx.) of net industry to disclose scope 3 Formulated the sustainability water saved (3X as GHG emissions across all code of conduct for suppliers compared to FY21) by 650,000 lives impacted from applicable ca
Slide 19: Impact till date
Engaging women and youth for social impact Lighting Lives Community based water Project Surya management Impacting youth through Water conservation initiative access to clean electricity to Impacting traditional salt through traditional rainwater schools, establishment of farmers by skilling them as
Slide 20: Impact till date
Engaging women and youth for social impact Women Climate Improved Cookstove Champions initiative Mentoring young women Providing access to clean climate entrepreneurs through cooking stoves to women impact accelerator program Impact till date Pilot initiated with 6 climate 5,000 cookstoves entrepren
Slide 21: Guidance
02 Guidance 21
Slide 22: Guidance
Guidance Net Debt(2) & Leverage(3) At Operating Capacity Of 7.6 GWs Adjusted EBITDA(1) And 13.2 GWs INR 86 – 92 bn 7000 6 INR 204 – 217 / share INR 442 – 465 Bn 6000 INR 66 – 69 bn 5000 5.5 INR 58 – 61 bn INR 156 – 163 / share INR 313 - 330 Bn INR 55 bn INR 137 – 145 / share INR 130 / share 4000 5 3
Slide 23: Appendix
05 Appendix 23
Slide 24: Counterparty Overview And Asset Breakdown
Counterparty Overview And Asset Breakdown Total Portfolio Total 13.2 GW Technology Solar 7.0 GW Hydro 0.1 GW Wind 6.1 GW Project Stage Commissioned Committed Commissioned Commissioned Committed 3.7 GW 3.3 GW 0.1 GW 3.8 GW 2.2 GW PPA Counterparty Centre State 3rd Party Centre State 3rd Party 3.8 GW 2
Slide 25: Operating Performance And Seasonality
Operating Performance And Seasonality As of and for the year ended 31 March 2020 2021(6) 2022 3M FY23 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 3.82 3.71 Weighted average operational 3.11 1.88 3.31 2.16 3.66 2.78 3.80 3.68 capacity(1)
Slide 26: 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 June 2022)(1) Raised US$3.5bn+ In Bond Offerings Through 8 USD Bond Offerings At Competitive Rates Reduction in weighted Working average cost of USD Capital Loan 6.67% bonds INR Bonds 1.0% 6.45% 1.72% 4
Slide 27: Debt Profile
Debt Profile Corporate debt By Debt Type 12% By Interest Rate Variable Rate 26% Project debt 88% Fixed Rate 74% 0 - 2 years By Currency(1) By Maturity 21% INR 43% US Dollars 2 - 4 years 57% (fully 10% hedged) > 4 years 69% Interest cost for the outstanding debt as of June 30, 2022 is ~8.9%2 Note: De
Slide 28: Expected quarterly additions of installed capacity
Expected quarterly additions of installed capacity 0.8 GW 1.8 GW 0.2 GW 1.4 GW 0.2 GW 0.6 GW 0.2 GW 13.2 GW 0.2 GW 13.2 GWs 12.347715 7.6 GW 8.923215 GWs 8.498785 GW 7.6 GW 7.62393 GW 6.3 GW Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 PPAs Awaited Total 28
Slide 29: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,613 MW) 23.1MW: APPC Rate + escalation linked to State APPC tariff; 2.1MW: GUVNL (23.1), 23.1 MW: 25 years; Jasdan
Slide 30: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,613 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
Slide 31: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Wind Energy Commissioned Projects (3,613 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.
Slide 32: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 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 APSPDC
Slide 33: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 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 Rajas
Slide 34: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 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) PPA
Slide 35: Project Level Details (as of August 18, 2022)
Project Level Details (as of August 18, 2022) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (405 MW) Otha(7) 11.0 Gujarat Sep-22 3.43 Grasim 25 Other Corporate Projects(7) 368.3 Multiple Q2 FY24(10) 3.25 – 4.07 3rd Pa