Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — FY2019 Earnings Presentation
37 slides from Suzlon Energy's earnings presentation, May 30, 2019
Slide 1: Suzlon Energy Limited FY19
Suzlon Energy Limited FY19 30 May 2019 SECI-1 Sembcorp Project
Slide 2: Disclaimer
Disclaimer • This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suzlon Energy Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: FY19: Another Challenging Year
FY19: Another Challenging Year • 1.5 GW commissioned in FY19 • 806 MW of auctioned projects India Commissioning (GW) • Balance by Captive/PSU/Retail -73% • Challenges faced in FY18 & FY19: 5.5 • Delay in central and state bidding guidelines • Delay in evacuation approvals • Delay in Ministry of Defe
Slide 4: Milestones Achieved
Milestones Achieved Annual Market Share (FY19) Cumulative Market Share ~39% ~35% Market share gains for 4th consecutive Market leadership maintained for over year two decades Largest fleet under maintenance ~22% market share ~1.8 GW of 12.5 GW in India of orders closed in auctions 2nd largest O&M Co
Slide 5: Traction In Auctions In FY19
Traction In Auctions In FY19 Feb’17 FY18 SECI 4 NTPC SECI 5 Hybrid 1 SECI 6 Gujarat 2 1.0 GW 4.5 GW 2.0 GW 1.2 GW 1.2 GW 0.8 GW 1.2 GW 0.7 GW Feb’17 FY18 Apr’18 Aug’18 Sep’18 Dec’18 Feb’19 May’19 6.4 GW Auctions Concluded in FY19 SECI 7 Deliveries and Commissioning 0.5 GW commenced Hybrid 2 0.7 GW
Slide 6: FY20 & Onwards: Strong Uptick In Volumes
FY20 & Onwards: Strong Uptick In Volumes Strong visibility for next two years 8 - 9 GW 6 - 7 GW 1.5 GW FY19 FY20 FY21 Challenges Resolution Evacuation approvals granted most of the auctioned capacity Delays in evacuation approvals PGCIL working on creation of evacuation infrastructure, Defined roadm
Slide 7: Largest Order Volume Share In SECI Auctions Concluded Till Date
Largest Order Volume Share In SECI Auctions Concluded Till Date Auction Wise Order Wins for Suzlon (MW) 1,740 202 285 Deliveries Fully Concluded 752 commissioned 252 250 SECI I SECI II SECI III SECI IV State Bids Total → Over 22% of auctioned and tied up orders → Top Quality Customer Profile: Orders
Slide 8: Wind Solar Hybrid Gaining Momentum
Wind Solar Hybrid Gaining Momentum 2 Wind Solar Hybrid Auctions Concluded Key Positives of Wind Solar Hybrid • Efficient utilisation of transmission infrastructure and land 1.5 GW Auctioned in 2 tranches • Reduce variability in renewable power generation • Improved grid stability Project Specs Tarif
Slide 9: Debt Reduction Program
Debt Reduction Program Debt Reduction Target 30% - 40% In process to reduce debt through strategic initiatives Medium to long term outlook for wind continues to remain positive 9 Committed to reduce debt
Slide 10: Financial Performance
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 10
Slide 11: FY19 Financial Highlights
FY19 Financial Highlights (₹ Cr.) FY19 FY18 Particulars Remarks Audited Audited Net Volumes (MW) 496 1,104 Net Revenue 4,978 8,075 Primarily due to low volume Gross Profit 1,980 2,959 Primarily due to revenue mix Gross Margin 39.8% 36.6% Employee Expenses 874 805 Other Expenses (net) 826 1,006 Inclu
Slide 12: Consistent Reduction In Net Working Capital
Consistent Reduction In Net Working Capital Fig. in ₹ Cr. -1,228 2,780 2,401 Working Capital to optimize under Auction regime 1,999 • Reduced regulatory uncertainty 1,667 1,552 • Elongated execution schedule • Smoothened out quarterly volumes • Large scale project size • Make to Order Q4 FY18 Q1 FY1
Slide 13: Stable Service Revenue Insulated From Business Cycles
Stable Service Revenue Insulated From Business Cycles Operations and Maintenance Revenues (₹ Cr.) ~15 GW of Assets under Management (AUM) +8.7% ― 12+ GW in India; ~3 GW Overseas 1,907 1,754 118 Internal 125 +9.8% ― 2nd Largest O&M player in India Power Sector, after NTPC Nearly 100% renewal trac
Slide 14: ~2.0 GW Backlog: Largest Backlog In India Wind Industry
Largest Backlog In India Wind Industry Particulars Capacity Remarks Central Auctions 1,006 MW All orders backed by signed PPA’s State Auctions 164 MW Retail, Captive, PSU & IPP 150 MW Backed by advance, Not dependent on PPAs Wind Firm Order Book 1,320 MW ~2.0 GW Backlog Value of Order Book ₹7,557 Cr
Slide 15: Debt Overview
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 15
Slide 16: Term Debt Profile
Term Debt Profile (Excl. FCCB) 31st Mar’19 31st Dec’18 Maturity Profile US$ 569 M US$ 569 M (₹ Cr.) SBLC Backed AERH Loans 4,483 (₹ 3,924 Crs.) (₹ 3,958 Crs.) US$ 172 M US$ 172 M FCCB (₹ 1,205 Crs.) (₹ 1,234 Crs.) 1,928 835 926 US$ 55 M US$ 62 M Other FX Term Debt (₹ 379 Crs.) (₹ 427 Crs.) FY20* FY2
Slide 17: Industry Outlook
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 17
Slide 18: Strong Visibility On Growth For India Wind Market
Strong Visibility On Growth For India Wind Market Feed-in-Tariff + Captive / PSU / Retail Auction + Captive / PSU / Retail 10.6 GW commissioned in last 3 years 15 - 18 GW commissioning by 2021 (GW) 8.0 – 9.0 6.0 - 7.0 5.5 3.4 1.8 1.5 FY16 FY17 FY18 FY19 FY20E FY21E Source: MNRE Source: Internal Esti
Slide 19: Poised To Become A 10+ GW Annual Market
Poised To Become A 10+ GW Annual Market India Annual Wind Market Potential Size and Segmentation 10 – 12 GW 8 – 10 GW 1 - 2 GW 1 GW Central Auctions State Auctions Captive / PSU / FiT Total Annual Market “India plans to auction 10 GW of wind energy for the next 10 years”, MNRE Secretary, Anand Kumar
Slide 20: Nearing The End Of Transition Phase
Nearing The End Of Transition Phase Parameter Upto FY17 Apr’17 – Mar’19 FY20 and Onwards PPA Mechanism Feed-in-Tariff Competitive Bidding Wind Tariff ₹ 4.0 – 5.0 /unit ₹ 2.5 – 3.0 /unit Transition from FiT to Auction Annual Market Size 3 – 4 GW 10 – 12 GW impacted turbine sales due to Order Book Cov
Slide 21: Other Emerging Opportunities For Growth
Other Emerging Opportunities For Growth Offshore • National offshore policy already notified 1 GW • Suzlon has commissioned 1st Offshore Met Station 2018 (Expression of Interest) • Offshore Advantage: Higher PLF due to high wind power density and shallow water 2022 Target 5 GW depth enables lower co
Slide 22: Technology
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 22
Slide 23: S120: Four Variants Launched
S120: Four Variants Launched S120 – 140 HLT S120 – 140 HCT S120 – 120 STT S120 – 105 TT (Dec ‘18) (Sep ‘18) (Jan ‘19) (Jun ‘18) Hybrid Lattice Tower Hybrid Concrete Tower Smart Tubular Tower Tubular Tower Reduces LCoE and improves ROI for customers >1,100 MW orders already booked 23 Enables us to re
Slide 24: Focus On Reducing LCOE
Focus On Reducing LCOE Higher energy yield Lower cost of energy Sustains Lower Tariffs >70% Increase in Energy Yield S97-120 S133 S111-90 S111-120 S111-140 S120 2.8 MW 24 Over 4,500 turbines of 2.1 MW platform across 17 countries
Slide 25: Pioneer In India Offshore
Pioneer In India Offshore Support Platform Offshore LiDAR • India’s 1st Private Far Offshore Met Station ‒ Opportunity to harness India’s 7,600km coastline ‒ Government plans to auction 5 GW of Offshore project next year • State of Art Installation ‒ 16km from the Shore Powered Through Solar ‒ 11m W
Slide 26: Global In-House R&D Capabilities
Global In-House R&D Capabilities Suzlon Technology Locations: Hamburg - Development & Integration Hamburg - Certification Germany Rostock - Development & Integration Rostock - Design & Product Engineering - Innovation & Strategic Research Hengelo The Netherlands Hengelo - Blade Design and Integratio
Slide 27: Suzlon Strengths
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 27
Slide 28: Suzlon Strengths In India Wind Market
Suzlon Strengths In India Wind Market Full Turnkey Solution Pan India Presence Provider Technology Leadership Strong Customer Relationship Best In Class Service 23+ Years Track Record Capabilities 28 End-to-end service provider with strong presence across value chain & customer segments
Slide 29: Accolades
Accolades • World’s 1st solar project quality certification for Suzlon’s 100 MW project • DNV GL confirms safety features and technical compliance • Testament of our commitment to high quality standards • Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition • For uniform profil
Slide 30: 12.5 GW Wind Energy Installations In India
12.5 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector Largest fleet under Operation and Maintenance fold in India Ranked No. 2 in Power Sector (31st Mar’18) # of Turbines MW <= 1 MW 1,678 777 >1 MW < 2 MW 4,268 5,774 =>2 MW 2,834 5,950 Total 8,780 12,501 2.0 GW • 35% - All Ind
Slide 31: Suzlon's Global Presence
Suzlon’s Global Presence As on 31st Mar 2018 2 5 2 1 North 6 America 3 1 2,779 MW 4 Asia 3 5 13,462 MW South America Europe 806 MW 508 MW 4 South Australia Africa 764 MW 139 MW 6 31 Suzlon’s strong relationships across regions positions it well Map not to scale. All data, information, and map is pro
Slide 32: USA PTC Volume: ~500 MW Pipeline Created For 100% PTC Projects
USA PTC Volume: ~500 MW Pipeline Created For 100% PTC Projects Production Tax Credit (PTC) Extension: Huge Volume Opportunity • PTC in USA extended until 2019 with benefits stepping down every year before phase out • In order to qualify, projects only need to start construction and make a minimum 5%
Slide 33: Detailed Financials
Financial Performance Debt Overview Industry Outlook Technology Suzlon Strengths Detailed Financials 33
Slide 34: Consolidated Income Statement
Consolidated Income Statement (₹ Cr.) Q4 FY19 Q3 FY19 Q4 FY18 FY19 FY18 Particulars Audited Unaudited Audited Audited Audited Revenue from operations 1,421 1,091 2,166 4,978 8,075 Less: COGS 953 607 1,404 2,998 5,116 Gross Profit 469 484 762 1,980 2,959 Margin % 33.0% 44.3% 35.2% 39.8% 36.6% Employe
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ Cr.) Liabilities Mar-19 Mar-18 Assets Mar-19 Mar-18 Shareholders' Fund -8,498 -6,967 Non Current Assets Non controlling interest -5 10 (a) Property, Plant and Equipment 1,147 1,267 -8,503 -6,957 (b) Intangible assets 335 155 (c) Investment property 37 41 (d) Capital wor
Slide 36: Consolidated Net Working Capital
Consolidated Net Working Capital (₹ Cr.) 31st Mar’19 31st Dec’18 31st Mar’18 Inventories 2,914 3,233 3,026 Trade receivables 1,881 1,925 2,990 Loans & Advances and Others 1,806 1,962 1,620 Total (A) 6,600 7,120 7,636 Sundry Creditors 2,175 2,966 2,527 Advances from Customers 1,490 1,138 932 Provisio
Slide 37: Thank You
CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 THANK YOU 37