Azure Power Global Limited · OTC:AZREF

Azure Power Global — Q2 FY2022 Earnings Presentation

37 slides from Azure Power Global's earnings presentation, Dec 13, 2021

  1. Slide 1: Second Quarter Fiscal 2022 Earnings Presentation

    ~7.2 GW* Pan India Portfolio India’s First Private Grid Connected MW Solar Plant India’s first Solar Green Bond Second Quarter Fiscal 2022 Ended September 30, 2021 Earnings Presentation December 13, 2021 1|Copyright © 2020 Azure Power |www.azurepower.com *~7.2 GW include 3.7 GW for which LOA has bee

  2. 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

  3. Slide 3: Key Highlights

    Key Highlights 3|Copyright © 2021 Azure Power |www.azurepower.com

  4. Slide 4: Key Highlights

    Under Committed & Portfolio(1) Operating(2) Construction Awarded(3) 7,225 MW 2,360 MW 595 MW 4,270 MW Key Highlights ESG: Carbon Neutral - first energy company in India to achieve carbon neutrality EV Policy – focus on Scope 1 emissions, commitment for 100% EV by 2030 Fortification against Covid – N

  5. Slide 5: Construction Update

    Construction Update Assam Rajasthan Rajasthan Rajasthan 6 Rajasthan 8 Rajasthan 9 Assam 600 MW 300 MW 300 MW 90 MW Commissioning 500MW - Done 150MW - Done Q4(1) 45MW - Done 100 MW – Q3 150 MW – Q3/Q4(1) 45MW – Q3/Q4(2) Financing 100% 100% 100% 100% Land 100% 100% 90%(3) 100% Under Construction Trans

  6. Slide 6: ESG Highlights

    ESG Highlights Q2 Highlights Electric Vehicle (EV) Policy adopted, focus on reducing scope 1 emission. All new vehicles to be purchased for common company use would now only be EV, commitment to shift to 100% EV by 2030. Interest subsidy to encourage staff to purchase EV. 2 EV purchased by company a

  7. Slide 7: ESG Highlights

    ESG Highlights Safety Score Card Items Weight YTD YTD Q2 YTD Target Achieved Score Zero Fatality 20% 0 0 0 100% Up to 0.475 LTI per million 20% manhour worked 0.475 0.33 0 100% 1,637 RIR (Safety observation) 20% 704 875 510 100% Close 79% NC + CAPA 15% 60% 65% 65% 100% 302 Internal Audit 15% 167 165

  8. Slide 8: Industry and Regulatory Update

    Industry and Regulatory Update COP26 Summit: India made 5 major announcements during COP26 GIB matter: MNRE has filed an application with Hon’ble Supreme Court meet concluded recently at Glasgow. (1) India to reach its non-fossil for modification of order dated April 19, 2021, with prayer, inter-ali

  9. Slide 9: Industry and Regulatory Update….cont’d

    Industry and Regulatory Update….cont’d Final hearing in Andhra Pradesh matter: The High Court of Andhra Pradesh in its latest hearing on December 8th, 2021 has directed AP Discoms to make outstanding payments to developers at interim tariff by next hearing on Dec 29th, 2021 and the main matter on ta

  10. Slide 10: Industry Developments

    Industry Developments Transition from plain vanilla renewable energy tenders to dispatchable RE power Market based mechanisms - Introduction of Green- Term Ahead Market (G-TAM), Green- Day Ahead Market (G-DAM) and Ancillary market are expected to bring welcome changes in the way renewable energy pow

  11. Slide 11: Q2 - FY2022 Overview

    Q2 - FY2022 Overview 11|Copyright © 2021 Azure Power |www.azurepower.com

  12. Slide 12: Q2’22 Key Performance Metrics

    Q2’22 Key Performance Metrics 2,210 MW* Operating 6,955 MW* Operating, US$ 0.47m Project US$ 59.1m Q2 Revenue#(4) 31% increase(1) Contracted & Cost/MW (DC)#(3) 25% increase Awarded(2) • 520 MW (719 MW DC) commissioned • 2,210 MW Operating • AC cost per MW US$ 0.47m for Q2 FY21# • US$ 47.2m for Q2 FY

  13. Slide 13: Review of Q2 FY22 Results

    Review of Q2 FY22 Results Reporte Adjusted Reported Reported 2Q FY’22 After % Change d Adjustments* (in million) 2Q FY’21 2Q FY’22 2Q FY’22 Adjustments adjusted Q2 FY’22 vs Comments 2Q FY’21 US$ INR INR US$ US$ adjusted Q2 FY’21 INR Primarily driven by projects commissioned since Q2 FY21 Revenue 3,5

  14. Slide 14: Improved Overhead and DSO

    Improved Overhead and DSO G&A Excluding Stock Compensation & Management Transition Accounts Receivable DSO Days Millions 150 $24 $22 Share price decreased from 140 $20 US$ 26.92 in Q1 FY22 to $18 US$ 22.00 in Q2 FY22, 130 $16 resulting in reversal of $14 provision. $12 120 $10 $8 110 DSO $6 $4 100 $

  15. Slide 15: Operating Assets Review: EBITDA, CFe, & Leverage

    Operating Assets Review: EBITDA, CFe, & Leverage 32% growth in CFe from Operating Assets YoY(1) EBITDA from Operating Assets CFe from Operating Assets (in US$ Mn) (in US$ Mn) +32% $18.9 +28% $51.6 Positive Drivers: $14.3 $40.3 Revenues: +$11.9 million 2Q'21 EBITDA 2Q'22 EBITDA 2Q'21 CFe 2Q'22 CFe As

  16. Slide 16: A Growing Balance Sheet

    A Growing Balance Sheet As at March 31, As at September 30, 2021 2021 (in million) (in million) (3) INR INR US$ Cash, Cash Equivalents and Current Investments(1) 11,107 9,513 128.3 Property, Plant & Equipment, Net 108,847 120,808 1,628.7 Net Debt(2) 86,928 104,522 1,409.4 Hedging Asset (net) 5,488 1

  17. Slide 17: Q3’22 and FY’22 Guidance

    Q3’22 and FY’22 Guidance Q3’22 Guidance FY’22 Guidance - Reiterated Q3 FY’22 Revenue: INR 2,750 – 2,955(1) MW 4,100 – 4,300 million(1) Operating by March 31, 2022 Q3 FY’22 PLF: 19.5% - INR 17,900 – 18,900 million(1) 20.5% of Revenue for FY’22 _________________________ 1) Q3 FY’22 revenue guidance is

  18. Slide 18: Long Term Outlook

    Long Term Outlook MW Operational Guidance MW 7,000 Gross Margin(2,4), Cash Flow to Equity for 6,000 Operating Assets(3,4) and Debt Forecast 5,000 CAGR 24% US$ Millions 4,000 $350 Gross 3,000 CAGR 43% Margin: $300 Gross $270 - $285 2,000 Margin: 1,000 Gross $208 - $228 $250 Margin: - $205 $200 FY'17(

  19. Slide 19: Appendix

    Appendix 19|Copyright © 2021 Azure Power |www.azurepower.com

  20. Slide 20: Historical Plant Load Factor (PLF); Annual, Quarterly

    Historical Plant Load Factor (PLF); Annual, Quarterly 25.0% 24.0% 23.7% 23.4% 23.0% 22.7% 22.3% 22.0% 21.5% Annual PLF 21.0% FY’21 20.9% 20.2% 19.5% – 20.5% PLF FY'20 19.5% 20.0% 3Q FY’22 forecast FY'19 18.6% FY'18 18.2% 19.0% 17.7% 19.3% 18.0% 18.8% 17.0% 16.8% 16.0% 15.0% 1Q 2Q 3Q 4Q FY'20a FY'21

  21. Slide 21: Historical Plant Load Factor (PLF); Green Bonds Performance

    Historical Plant Load Factor (PLF); Green Bonds Performance Azure Power Energy Limited (RG1)* Azure Power Solar Energy Private Limited (RG2) 22.0% 29.0% 26.4% Q1 F22 21.0% 27.4% 21.0% 27.0% 20.6% 26.3% 20.2% Q1 F22 25.5% 20.0% 20.1% 20.0% 25.0% 23.0% 21.0% Q2 F22 19.0% 22.7% 21.0% 22.4% 18.0% 21.0%

  22. Slide 22: DSO by Counterparty

    DSO by Counterparty Amounts in US$ million On time/ Past due Net Within Past due up DSO Customer Name Capacity (MW) more than 365 Receivables grace to one year days (2) days period(1) SECI , NTPC, NVVN 1,189 14.5 14.2 0.3 - 52 Andhra Pradesh(3) 50 13.7 1.1 6.1 6.5 733 Karnataka(4) 250 25.6 4.9 13.5

  23. Slide 23: Use of Non-GAAP Financial Measures: EBITDA

    Use of Non-GAAP Financial Measures: EBITDA Adjusted EBITDA is a non-GAAP financial measure. We present 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 of

  24. Slide 24: Reconciliation of Non-GAAP Measures to Comparable GAAP measures

    Reconciliation of Non-GAAP Measures to Comparable GAAP measures Quarter Ended September 30, Six Month Ended September 30, (in million) (in million) 2020 2021 2021 2020 2021 2021 INR INR US$ INR INR US$ Net (Loss)/ Profit (368) (300) (4.0) (322) 397 5.6 Income tax (income)/ expense (97) 821 11.1 220

  25. Slide 25: Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe)

    Use of Non-GAAP Financial Measures: Cash Flow to Equity (CFe) Cash Flow to Equity is a Non-GAAP financial measure. We present CFe as a supplemental measure of our performance. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP meas

  26. Slide 26: Cash Flow to Equity (CFe)

    Cash Flow to Equity (CFe) For the quarter ended For the quarter ended (US $ million) September 30, 2020 September 30, 2021 Operating Others Total Operating Others Total Sale of power 47.2 - 47.2 59.1 - 59.1 Cost of operations 4.2 - 4.2 4.8 - 4.8 General and administrative 2.7 9.2 11.9 2.7 2.0 4.7 Ad

  27. Slide 27: Cash Flow to Equity (CFe) – Contd.

    Cash Flow to Equity (CFe) – Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of Nil and US$ 0.1 million, share based compensation of US$ 7.1 million and US$ (3.2) million, non-cash rent expense of US$ 0.5 million and US$ 0.8 mil

  28. Slide 28: Cash Flow to Equity (CFe)

    Cash Flow to Equity (CFe) For six months ended For six months ended (US $ million) September 30, 2020 September 30, 2021 Operating Others Total Operating Others Total Sale of power 100.4 - 100.4 119.0 - 119.0 Cost of operations 7.7 - 7.7 9.4 - 9.4 General and administrative 4.4 12.5 16.9 4.6 5.8 10.

  29. Slide 29: Cash Flow to Equity (CFe) – Contd.

    Cash Flow to Equity (CFe) – Contd. (1) Items from the Statement of Cash Flows. Other items include: loss on disposal of property plant and equipment of US$ 0.1 million and US$ 0.1 million, share based compensation of US$ 8.1 million and US$ (1.6) million, non-cash rent expense of US$ 0.4 million and

  30. Slide 30: Projects Commissioned - Utility

    Projects Commissioned - Utility As on September 30, 2021 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 1

  31. Slide 31: Projects Commissioned– Utility and C&I

    Projects Commissioned– Utility and C&I Commercial PPA Duration DC Capacity Tariff Project Names Operation Capacity Off taker of PPA in (MW) (INR/kWh) Date(1) (MW) Years Operational – Utility Bihar 1 (3) Q3 2016 10 11 8.39 North & South Bihar Power Distribution Company Ltd 25 Punjab 4.1(3) Q4 2016 50

  32. Slide 32: Projects Under Construction

    Projects Under Construction As on September 30, 2021 Expected Commercial PPA Capacity Tariff Duration of PPA in Project Names Off taker Operation Date (1) (MW) (INR/kWh) Years Under Construction Assam 1# Q1 2022 45 3.34 Assam Power Distribution Company 25 Rajasthan 6# Q4 2021 100 2.53 Solar Energy C

  33. Slide 33: Debt Overview

    Debt Overview As of September 30, 2021 Maturity Profile (1,2,3) $500 $441.3 $411.6 $384.5 $400 US$ Millions $300 $200 $148.2 $97.2 $100 $64.5 $0 FY'22 FY'23 FY'24 FY'25 FY'26 - 29 FY'30 & Beyond Debt Split by Currency LT vs ST Debt Split INR Debt Foreign Debt Short Term Debt Long Term Debt Consolida

  34. Slide 34: Project Debt Schedule

    Project Debt Schedule As of September 30, 2021 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project INR US$ (2) Under construction Rajasthan 6 16,486 222.3 Floating INR/US$ 2021-2040 Partly commissioned Andhra Pradesh 1 2,508 33.8 Fixed

  35. Slide 35: Project Debt Schedule

    Project Debt Schedule As of September 30, 2021 Outstanding Principal Amount (In millions) Type of Interest Currency Maturity Date(1) Commissioned/ Name of Project Under construction INR US$ (5) Punjab 3.1 and 3.2 1,219 16.4 Fixed INR 2024 Commissioned Rajasthan 8 4,931 66.5 Floating US$ 2026 Under c

  36. Slide 36: 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 fiscal year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and

  37. Slide 37: To Be The Number One Provider Of Sustainable Energy Solutions

    To Be The Number One Provider Of Sustainable Energy Solutions For A Carbon Neutral World 37|Copyright © 2021 Azure Power |www.azurepower.com

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