Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Q2 2024 Earnings Presentation
43 slides from Renew Energy Global's earnings presentation, Nov 20, 2023
Slide 1: Q2 FY24 Earnings Presentation
Q2 FY24 Earnings Presentation November 20, 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
Slide 4: Highlights
Highlights Raising Guidance Capital Recycling: Strong Inbound Interest • Bottom end of EBITDA guidance range raised 3%; • 100 MW asset sale completed for a gain, guidance INR 62 - 66 bn proceeds received • Continue to expect commissioning of between 1.75 – 2.25 GW by the end of FY24 • US$ 565 mn rai
Slide 5: Favorable Backdrop for Indian Renewables
Favorable Backdrop for Indian Renewables Power demand growth and supply shortfalls Peaking power demand, high merchant(2) tariffs & low BU BU 1,800 8.00 competition 1,700 Power demand growth at 8% CAGR 1,600 7.00 ▪ Power demand has grown at a CAGR of 8% in the last 5 years 1,500 1,400 6.00 ▪ India’s
Slide 6: Disciplined Approach to Winning in a Larger Market
Disciplined Approach to Winning in a Larger Market Complex auctions provide higher returns: ReNew’s Auction(1) market robust: RNW taking market share of complex auctions competitive advantage in complex auctions GW 50 50 GW(3) ▪ 3.5 GW won YTD; PPA signed for 400 MW and LoAs (not in 45 RNW has 40% s
Slide 7: Commissioning Update: On Track
Commissioning Update: On Track ReNew’s differentiated approach RTC Project Peak Power Project ▪ ~415 MW commissioned YTD, in line with our expectations; ~300-500 MW to be completed during Q3 FY24 ▪ Continue to expect between ~1.75 – 2.25 GW of commissioned projects by fiscal year end ▪ RTC & Peak Po
Slide 8: Financial Highlights
02 Financial Highlights 8
Slide 9: Optimizing Debt Opportunities for Stable Interest Cost
Optimizing Debt Opportunities for Stable Interest Cost Multiple avenues to tap cheaper INR debt Sustained reduction in interest cost in rising interest rate ▪ Stable interest cost over past 2 years at ~9.15% environment % Effective in lowering % 11.5 interest Costs 6.0 ▪ INR debt 200-225 bps cheaper
Slide 10: Capital Discipline: Funding Growth through Asset Recycling
Capital Discipline: Funding Growth through Asset Recycling Securing equity funding for growth with lower leverage Robust, repeatable model to secure equity funding for growth Overview of remaining capex and sources of funding for 5.5 GW under construction pipeline ▪ No intention to issue shares for
Slide 11: Q2 FY24 Operating Performance
Q2 FY24 Operating Performance ▪ Total portfolio Key metrics (INR bn) ▪ Total portfolio of ~13.8 GW(1) (commissioned and committed) ▪ ~8.3 GW commissioned(1) 53.2 ▪ ~5.5 GW committed(1) 47.4 39.9 ▪ 99% of portfolio has PPA contracts 38.4 28.6 ▪ ~415 MW of corporate projects commissioned YTD 22.4 18.2
Slide 12: US$ 256 mn Adj. EBITDA for Q2 FY24
US$ 256 mn Adj. EBITDA for Q2 FY24 In mn Adjusted Q2 FY24 Adjusted YoY % growth Q2 FY24 Q2 FY23 Adj Q2 FY23 Adjustments Q2 FY24 Comments Vs (INR) (INR) (US$) (INR) (US$) (INR) (US$) Q2 FY24 Adj Revenue from contracts with 19,560 25,956 312 - - 25,956 312 32% customers Other operating income 16 193 2
Slide 13: Continued Strong DSO Improvement
Continued Strong DSO Improvement Ageing of receivables ▪ Sept’23 DSO(4) improved by 119 days YoY to 112 (vs. 231 Days Contribution Offtaker DSO % share in total days in Sept’22) as DISCOMs cleared past due accounts receivables to DSO ▪ Compared to Q2 FY23, improved DSO led to an incremental Central
Slide 14: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary March 31, September 30, September 30, 2023 2023 2023 INR mn INR mn US$(4) mn (Audited) (Unaudited) (Unaudited) Cash and cash equivalents, bank balances 77,021 83,613 1,001 (including short and long term)(1) Property, plant and equipment, Net(2) 538,355 592,780 7,07
Slide 15: Sustainability and ESG
03 Sustainability and ESG 15
Slide 16: Key highlights from Q2 FY24
Key highlights from Q2 FY24 Released Sustainability Report 2022-23 Key highlights of the report • ReNew generated clean electricity of 17,386 mn kWh, enough to power ~ 5 mn Indian households • Helped to avoid 14 mn tons of carbon emissions through its operations, i.e., 0.5% of India’s total emission
Slide 17: Key highlights from Q2 FY24
Key highlights from Q2 FY24 Benefitting Communities with Sustainability Initiatives Flagship Programs Site Specific & Employee Driven Programs Lighting Lives An initiative focusing on last mile Rice Bucket Challenge electrification of schools with less than 3 Donating rice to the needy and contribut
Slide 18: Guidance
04 Guidance 18
Slide 19: Guidance
Guidance Adjusted EBITDA(1)(5) Net debt*(2)(5) to Adj. EBITDA levels INR 89 – 94 bn* INR 221 – 233/share INR 62 – 66 bn INR 62 bn INR 153 – 164/share INR 153/ share 1.2x 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 13
Slide 20: Appendix
05 Appendix 20
Slide 21: US$ 480 mn Adj. EBITDA for H1FY24
US$ 480 mn Adj. EBITDA for H1FY24 In mn Adjusted H1 FY24 Adjusted YoY growth % H1 FY24 H1 FY23 Adj H1 FY23 Adjustments H1 FY24 Comments v/s (INR) (INR) (US$) (INR) (US$) (INR) (US$) H1 FY24 Adj Revenue from contracts with 41,734 47,206 568 - - 47,206 568 13% customers Other operating income 270 302
Slide 22: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation In mn For the three months ended September 30, For the six months ended September 30, 2022 2023 2023 (1) 2022 2023 2023 (1) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (INR) (INR) (US$) (INR) (INR) (US$) Profit/Loss for the period (986) 3,771 45
Slide 23: Cash Flow to Equity Reconciliation
Cash Flow to Equity Reconciliation In mn For the three months ended September 30, For the six months ended September 30, 2022 2023 2023 2022 2023 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (INR) (INR) (US$) (INR) (INR) (US$) Adjusted EBITDA 18,209 21,298 256 38,366
Slide 24: Operating Performance and Seasonality
Operating Performance and Seasonality As of and for the quarter ended 30 Sept, 2023 Q2 FY23 Q2 FY24 6M FY23 6M FY24 Wind Solar Wind Solar Wind Solar Wind Solar Commissioned capacity (GW) 3.9 3.7 4.2 4.0 3.9 3.7 4.2 4.0 Weighted average operational 3.9 3.7 4.2 4.1 3.8 3.7 4.1 4.0 capacity(1) (GW) Pla
Slide 25: Weather Impact
Weather Impact All India renewable wind energy PLFs 40.0% (FY 2021 – FY 2024) 35.4% Remarkable improvement in wind PLF in the Q2 FY24 35.0% 30.0% 25.6% ReNew wind PLFs in line with all-India trends 25.0% 41.3% 20.0% 34.8% 36.3% 29.9% 32.7% 30.8% 16.7% 20.0% 15.0% 14.7% 18.3% 10.0% Q1 Q2 Q3 Q4 FY22 F
Slide 26: Projected EBITDA for H2 FY24
Projected EBITDA for H2 FY24 H2 FY24 projections All numbers in INR bn 65.0 22 – 26 62 – 66 60.0 55.0 50.0 45.0 0.09 0.96 40.0 35.0 38.84 39.90 30.0 H1 Adj. EBITDA Additional Revenue Lower Costs H1 Adj. EBITDA H2 Adj. EBITDA FY24 Adjusted EBITDA (Beginning of the (expected) year expectations) Full Y
Slide 27: Finance Cost Walk
Finance Cost Walk H1 FY23 Interest Expense vs H1 FY24 Interest Expense All numbers in INR bn 40 3.28 (4.86) 35 30 (1.34) (3.21) 25 20 15 30.16 24.03 10 5 0 H1 FY23 New Term Loans Lower Foreign Exchange Lower Derivatives Expense Savings on Interest Costs H1 FY24 Expenses Note: 27 1 US$ = INR 83.08 FE
Slide 28: Debt Profile (~87% Maturity >3 years, ~59% Fixed Rate)
Debt Profile (~87% Maturity >3 years, ~59% Fixed Rate) By Debt Type By Source By Currency Euro 2% Secured Loan INR Variable from FI 55% 41% 31% Secured Bank Loan US Dollars 26% 43% (hedged) (1) Senior Overseas Fixed Working Capital Loan Green Bonds 59% 37% INR Bonds 3% 3% By Project Type (4) By Matu
Slide 29: ReNew's Outstanding Bonds
ReNew’s Outstanding Bonds Outstanding Avoided emissions (t CO2/year) Bond Type Issue Date Maturity Coupon Hedge Green Bond (mn $) attribute to the bonds Holdco Issuance Jan 2020 Mar 2027 270 5.875% ATMF Yes 577,095 Restricted Group Oct 2020 Apr 2024 325 5.375% ATMF/CCS Yes 773,969 (RG III) Restricte
Slide 30: Run Rate Debt Walk from FY23 Debt Level for 13.8 GW Portfolio
Run Rate Debt Walk from FY23 Debt Level for 13.8 GW Portfolio INR 65 - 72 bn INR 76 bn INR 165 -180 bn INR 50 - 60 bn INR 30 –40 bn INR 495 bn INR 590 - 610 bn INR 530 - 560 bn # Net of INR 18.1 bn of debt related to minority stake sale and INR 17.4 bn of CCD considered as equity 30 The capex consid
Slide 31: Stable State Assets have Strong Financial Performance
Stable State Assets have Strong Financial Performance Restricted Group I - ~510 MW Restricted Group III – ~382 MW Net Debt(1) and Net worth (US$ mn) Net Debt(1) and Net worth (US$ mn) 600 500 7.0x 5.1x 5.2x 600 5.3x 4.9x 6.1x 400 500 438 429 420 313 299 308 400 300 300 200 113 116 113 200 125 132 11
Slide 32: Pioneering Strategy to Produce Cheapest Round-the-Clock Power
Pioneering Strategy to Produce Cheapest Round-the-Clock Power Wind + Solar + Battery is cheaper than other complex solution LCOE per kWh of RTC with battery v/s RTC with pumped hydro LCOE in INR per kWh up to 4 hours of guaranteed supply requirement ▪ ~20% cheaper solution than Pumped Hydro + Solar
Slide 33: Bolstering Our ESG Targets
Bolstering Our ESG Targets Our ESG targets Update for Q2 FY24 Status To be validated as carbon neutral (scope 1 Verified as ‘carbon neutral’ for our operations across ~150 sites and facilities for FY23 & 2) annually till 2025 Assurance • Assurance for FY22-23 completed Completed Calculation of Scope
Slide 34: Counterparty Overview and Asset Breakdown
Counterparty Overview and Asset Breakdown Total Portfolio Total 13.8 GW Hydro 0.1 GW Technology Solar 7.5 GW Wind 6.2 GW Commissioned Committed Commissioned Commissioned Committed Project Stage 3.9 GW 3.5 GW 0.3 GW 4.1 GW 2.0 GW PPA Counterparty Centre State Corporate Centre State Corporate 3.7 GW 2
Slide 35: 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% 20.8% Class A Shares 244 Class B Shares(3) - 3.5% 53.4% 3.64% 7.4% Class C Shares 118 6.65% Class D Shares(3)
Slide 36: Demand, Supply
Demand, Supply Industry trends indicate huge untapped potential Record energy and peak demand – Q1 FY22 to Q2 FY24(1) Rise in electricity blackouts across India Energy GW Peak Sept’23 power shortages in various states BU 170 250 (% power demand)(3) 150 220 India (Total) 130 190 Population of 110 160
Slide 37: Project Level Details
Project Level Details (as of October 25, 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; Ja
Slide 38: Project Level Details
Project Level Details (as of October 25, 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 2
Slide 39: Project Level Details
Project Level Details (as of October 25, 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
Slide 40: Project Level Details
Project Level Details (as of October 25, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Commissioned Projects (3,196 MW) 5.98 for year 1 with 3% escalation till year 10, 10th year tariff Cumbum 21.0 Andhra Pradesh Mar-16 APSPD
Slide 41: Project Level Details
Project Level Details (as of October 25, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Utility Scale Solar Energy Committed Projects (2,575 MW) SECI IX 700.0 Rajasthan H2 FY25 2.37 SECI 25 GUVNL – XIX 400.0 Gujarat H2 FY25 2.71 GUVNL 25 Total Utility S
Slide 42: Project Level Details
Project Level Details (as of October 25, 2023) Project Capacity (MW) Location COD(8) Tariff (INR/kWh)(1) Offtaker(2) PPA Tenure at Cod Corporate Wind Energy Committed Projects (466 MW) Other Corporate Projects(7) 466.3 Multiple Q2FY24-Q2FY25 2.80 – 3.81 3rd Party - Corporate Solar Energy Commissione
Slide 43: Thank You
Thank You For further inquiries please contact IR@renew.com 43