Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q2 FY17 Earnings Presentation
23 slides from Azure Power Global's earnings presentation, Nov 22, 2016
Slide 1: Earnings Call Q2 FY17
Picture: 100 MW, Jodhpur, Rajasthan Largest Solar Power Plant under National Solar Mission policy Earnings Call India’s first private grid connected MW Solar plant India’s first distributed MW scale rooftop solar project 22nd November 2016 Pan India portfolio of solar assets in 15 States Q2 FY 17 La
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: Affordable Solar Power for Generations
Affordable Solar Power for Generations Our mission is to be the lowest cost power producer in the world . a = inte = : 3 = = ——< = er eet a =e wee oo co = 100MW* | RAJASTHAN 3 Excellence Honesty Socially Responsible Entrepreneurship
Slide 4: Business Continues to Outperform - Contracts & Financing for CY17 Targets Secured
Business Continues to Outperform- Contracts & Financing for CY17 Targets Secured Ahead of Schedule Company founded by Inderpreet Wadhwa in 2008 Developed India’s first utility scale solar project in 2009 Long term, fixed price PPAs typically 25 years; Diversified portfolio of 1,021 MW committed tari
Slide 5: Largest Operating Projects under National Solar Mission
(00 MW, LARGEST OPERATING PROJECT UNDER NATIONAL SOLAR MISSION 1.46 MW, LARGE SCALE DISTRIBUTED USE OF SOLAR POWER FOR LEADING GLOBAL COMPANIES
Slide 6: Azure Power's Integrated Platform Drives Competitive Advantage
Azure Power’s Integrated Platform Drives Competitive Advantage We utilize four main levers to improve returns and enable sustained growth Effective Experienced market participant with track record of winning bids Bidding above the lowest clearing bid Project Cost Value engineering, design and procur
Slide 7: Supportive Regulation, Robust Demand, Abundant Solar Resource Driving Solar Growth
Supportive Regulation, Robust Demand, Abundant Solar Resource & Falling Cost Driving Solar Growth Supportive Regulation High Growth Market • Government target of 100GW by • Industry growing at 53% CAGR to 2022 supported by Renewable 2022 Purchase Law(1) • 20 GW of new projects to be • India ratified
Slide 8: Effective Strategy & Strong Execution Drives 111% YoY Increase in MW
Effective Strategy & Strong Execution Drives 111% YoY Increase during Q2 FY’17 in Operating & Committed High Quality MW 358MW Operating(1) 1,021MW Operating & Committed(1) US$13mn Revenue(1) 48% increase 111% increase 40% increase 275.1mn kWh Generation(2) US$0.87mn Project Cost/MW(2) US$159mn Portf
Slide 9: Azure Power is Constructing the Largest Solar Plant in North India
Azure Power is Constructing the Largest Solar Plant in North India 150MW | PUNJAB 4 Largest solar project in the state of Punjab, 25 Year PPA with Punjab State Power Apart from electrifying the vicinity, the Corporation Ltd at US$0.085(1)per kWh project will create an estimated 1,000 jobs Project co
Slide 10: Azure Power delivered 44% Adjusted EBITDA growth in Q2 FY'17
Azure Power delivered 44% Adjusted EBITDA growth in Q2 FY’17 Six Months Ended September 30, Three Months Ended September 30, % Change (in thousands) (in thousands) Q2FY’17 vs Q2FY’16 2015 2016 2016 2015 2016 2016 INR INR US$ INR INR US$ Revenue 1,211,089 1,916,604 28,786 640,894 894,911 13,441 40% N
Slide 11: Adjusted EBITDA Margin Expansion Driven by Disciplined Cost Management
Adjusted EBITDA Margin Expansion Driven by Disciplined Cost Management 44% growth in Adjusted EBITDA in Q2FY’17 vs Q2FY’16 12,000 3,815 10,000 486 769 8,428 In US$ Thousands 8,000 5,868 6,000 4,000 2,000 0 Q2FY'16 Adjusted Additional Revenue Cost of Revenue General & Administrative Q2FY'17 Adjusted
Slide 12: Azure Power has grown its operating capacity by 48% year over year
Azure Power has grown its operating capacity by 48% year over year to 358 MW March 31, 2016 September 30, 2016 (in thousands) (in thousands) INR INR US$ Cash and cash equivalent 3,090,386 6,116,438 91,866 Property, Plant & Equipment, Net 24,381,429 28,396,044 426,495 Total Debt* 20,487,951 26,272,78
Slide 13: Strong Liquidity Position
Strong Liquidity Position The Company raised equity of INR1,666.5 million (US$25.0 million) during the quarter ending September 30, 2016 from a pre-IPO financing round. Subsequent to this quarter, the Company has raised INR 9,081.5 million (US$136.4 million) from its initial public offering and conc
Slide 14: Guidance
Guidance 520 MW Operating by December 31, 2016 (Q3 FY17) 950-1,050 MW Operating by December 31, 2017 (Q3 FY18) US$64-68 million Revenue* for FY17 ___________________________ *Assumes 66.58 INR/US$ Exchange rate. 14
Slide 15: Appendix
Appendix 15
Slide 16: 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 17: Reconciliation of Non GAAP Measures to Comparable GAAP measures
Reconciliation of Non GAAP Measures to Comparable GAAP measures Six Months Ended September 30 Three Months Ended September 30 (in thousands) (in thousands) 2015 2016 2016 2015 2016 2016 INR INR US$ INR INR US$ Net loss (688,539) (370,544) (5,565) (446,958) (138,871) (2,086) Income tax expense/ (bene
Slide 18: Nominal Contracted Payments & Portfolio Run-Rate
Nominal Contracted Payments & Portfolio Run-Rate Nominal Contracted Payments are the sum of estimated payments for the life of signed PPAs. Values are not discounted. As of September 30, 2015 2016 INR INR US$ Nominal contracted payments 123,566,324 247,388,527 3,715,658 (in thousands) ………………… Total
Slide 19: Project List - Operational (Utility)
Project List- Operational (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (INR/kWh) Date(1) Years Punjab 1 Q4 2009 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Punjab 2.1 Q3 2014 15 7.67 Punjab State Power Corporation Limited 25 Punjab 2.2 Q4 2014 15 7.9
Slide 20: Project List - Under Construction & Committed (Utility)
Project List- Under Construction & Committed (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (INR/kWh) Date(1) Years Under Construction Karnataka 3.1 Q4 2016 50 6.51 Chamundeshwari Electricity Supply Company Ltd 25 Karnataka 3.2 Q1 2017 40 6.93 Hubli El
Slide 21: Project List - Commercial Rooftops
Project List- Commercial Rooftops Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (INR/kWh) Date(1) Years Operational Gujarat Rooftop 2013 2.5 Torrent Power Limited 25 DLF (total) 2013-2016 1.90(2) DLF Limited 25 Uttar Pradesh Rooftop 1 Q1 2015 0.555 Indosolar Li
Slide 22: Debt Schedule
Debt Schedule Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(1) Name of Project INR US$ Punjab 1 220,308 3,309 Fixed US$ 2024 Punjab 2 3,530,699 53,029 Floating INR 2030 Gujarat 1 1,225,687 18,409 Fixed US$ 2025 Gujarat rooftop 118,010 1,772 Floating INR 2028 Raj
Slide 23: 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 80% of project costs in year 1 and the rem