Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Investor Presentation (September 2020)
47 slides from Adani Green Energy's investor presentation, September 2020
Slide 1: Adani Green Energy Limited Equity Presentation
Renewables Adani Green Energy Limited EQUITY PRESENTATION September 2020 1
Slide 2: Contents
CONTENTS Adani Group Renewable Industry & Key 04-07 09-14 Investment Considerations - AGEL 16-20 AGEL – Company Profile AGEL & India: Renewable Growth AGEL: COVID–19 Update 13 Story 09 Adani: World class infrastructure AGEL: Leading Renewable Player AGEL: Immense Value Creation 10 in India… 14 & uti
Slide 3: Adani Group
Renewables Adani Group Amongst the Largest Infrastructure & Utility Portfolio of the World 3
Slide 4: Adani Group: A world class infrastructure & utility portfolio
Adani Group: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.5% 100% 75% 75% Marked shift from B2B to B2C businesses - APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL - Gas distribution network to serve key 100%
Slide 5: Adani Group: Repeatable, robust & proven model of infrastructure development
Adani Group: Repeatable, robust & proven model of infrastructure development Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence plann
Slide 6: Adani Group: Repeatable, robust business model applied to drive value
Adani Group: Repeatable, robust business model applied to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Commercial Port Line in Asia Solar Po
Slide 7: AGEL: Robust Business Model with Rapid Growth & Predictable Returns
AGEL : Robust Business Model with Rapid Growth & Predictable Returns.. Total Portfolio Diversified Portfolio ESG 13,9901MW 11 states Development 74% solar; 12% wind; 14% wind-solar hybrid Pure-play Solar & Wind Assets (2,595 MW Operational 11,395 MW Pipeline) 100% Contracted Capacity Counterparty pr
Slide 8: Renewable Growth Story & Key Investment Considerations - AGEL
Renewables Renewable Growth Story & Key Investment Considerations - AGEL 8
Slide 9: AGEL: Renewable Growth Story
AGEL: Renewable Growth Story India: Renewable Installed Capacity (in GW) 1 India’s Strategy for Future Development Historic • Deploying new models for renewables to make it main stream Projected e.g. Hybrid, RTC Power etc. • Building transmission infrastructure for large scale integration of renewab
Slide 10: AGEL: Immense Value Creation
AGEL: Immense Value Creation FY 17 FY 20 Capacity (MW) 748 MW CAGR of 47% 2,545 MW 1 Investment Grade Credit Rating Not Rated Rating BBB- 2 Capital Employed3 INR 50 bn CAGR of 42% INR 145 bn Run-rate EBITDA4 INR 8 bn CAGR of 45% INR 25 bn EBITDA Return on Consistent ~ 17% ~ 16% Capital Employed Hist
Slide 11: AGEL: A Compelling Investment Case
AGEL: A Compelling Investment Case ▪ UN Sustainable Development Goals leading the ▪ Locked-in capacity growth of 5x from 2.6 GW to way with commitment to reduce carbon emission Significant 14 GW with already awarded projects Transition to Growth Renewables Opportunity ▪ Targeted capacity growth of 1
Slide 12: Adani Green Energy Limited Company Profile
Renewables Adani Green Energy Limited Company Profile 12
Slide 13: AGEL: COVID-19 Update
AGEL: COVID–19 Update Operations Under-construction Access to Capital ▪ Electricity Generation has been ▪ MNRE has given all renewable ▪ Concluded Adani-TOTAL JV specified as an Essential projects in the pipeline a blanket and received investment of Service amid Lockdown extension of 5 months from I
Slide 14: AGEL: Leading Renewable Player in India
AGEL: Leading Renewable Player in India… Project Pipeline 11,395 MW Total 50% Adani 50% Operational Solar Operational Wind Adani TOTAL JV Co 50 MW Assets 397 MW RG 1 RG 2 TN SPVs Solar Wind Hybrid 930 MW 570 MW 648 MW 8,425 MW 1,280 MW 1,690 MW Presence across Largest Listed Resource and 11 resource
Slide 15: AGEL: Large, Geographically Diversified Portfolio
AGEL: Large, Geographically Diversified Portfolio 13,990 MW # Portfolio | 2,595 MW operational Average AGEL tariff below APPC* APPC @ 3.60/kWh Operational Under Implementation Wind Solar Solar-Wind Hybrid 3.2 2.5 2.4 2.7 2.3 3.24 Apr'17 Dec'17 Jan'18 Aug'18 Jun'20 AGEL 100 Portfolio Avg. 175 100 Low
Slide 16: Replicating Adani Group Business Model: Development Philosophy
1 AGEL- Replicating Adani Group Business Model: Development Philosophy Resource Rich Areas Evacuation Infrastructure Economies of Scale Land Acquisition 12,000 acres Clear visibility GW Scale Development Of land already acquired on evacuation infrastructure within time and budget In-house design tea
Slide 17: Replicating Adani Group Business Model: O&M Philosophy
2 AGEL- Replicating Adani Group Business Model: O&M Philosophy Centered around its Energy Network Operation Centre (ENOC), allowing for efficient and cost-effective operational performance Predictive Analytics Centralized Monitoring led Improvements Cost-Efficiency • ENOC allows engineers to perform
Slide 18: Replicating Adani Group Business Model: Capital Management Philosophy
3 AGEL- Replicating Adani Group Business Model: Capital Management Philosophy Maximize FCFE → Cash reinvested for growth → Multiply FCFE Project Construction Stabilization Post-Stabilization HoldCo. Financing Strategic Equity Sale Financing Phase Phase Ensure senior debt availability HoldCo financin
Slide 19: Sustainable Value Preposition
Renewables Sustainable Value Preposition 19
Slide 20: AGEL: Equity Cycle Program
AGEL: Equity Cycle Program Bidding Stage Stabilization Re-finance DBFOT Conservative Bidding Stage Reduction in construction costs Strategic Capital Management • Strategic partnership freeing assumptions achieved by bringing in financing efficiencies up equity investment • Equity stake sale to Strat
Slide 21: AGEL Capital Management: Journey so far & Next Steps
AGEL- Capital Management: Journey so far & Next Steps 100% operational Solar Portfolio Elongated maturity & Reduced Transparent information refinanced Cost disclosures ▪ 648 MW TN: INR 3100 Cr (~$443mn) ▪ Increased from 7.5 years to 10.9 years ▪ A detailed compliance certificate is provided to inves
Slide 22: Case Study: Strategic Sale to TOTAL SA
Case Study: Strategic Sale to TOTAL SA - De-risking through Capital Management Value Creation ▪ On-boarded strategic marquee investor TOTAL SA 50% 50% AGEL ▪ TOTAL SA acquired 50% SPV level stake ▪ Received Investment proceeds of INR 3707 Cr TOTAL JV Co Capital De-risking ▪ Proceeds proposed to be u
Slide 23: ESG
Renewables Adani Green Energy Limited ESG 23
Slide 24: AGEL: ESG Philosophy
AGEL: ESG Philosophy • Committed to Science Based Targets initiative (SBTi) • Supporter of Task Force on Climate-related Financial Disclosures (TCFD) • Signatory to UN Global Compact (UNGC) Environmental • Disclosure as per CDP from Q2 FY21 onwards • Water/ Waste water management through rain water
Slide 25: AGEL: ESG performance for FY20
AGEL: ESG performance for FY20 Efficiency Resource Management Waste Management Wind-Solar Hybrid: Matching Unproductive land used for 4.0 million ton CO2 emission load curve plants reduced in FY20 Remote Operating Nerve Proprietary technologies to Design to significantly Environmental Centre save wa
Slide 26: Environment awareness and initiatives
Environment awareness and initiatives Focus on following environment related factors which matter to the business model Climate Awareness Offsetting of Carbon Emissions Resource Management Waste Management Increased efficiency Resource Management Waste Management • Matching the load curve through •
Slide 27: Technology intervention enabling effective management of resource
Technology intervention enabling effective management of resource Reduction in water usage for module cleaning Efficiency in land usage Pioneer in adoption of latest technologies for module cleaning Sites identified for setting up solar / wind projects process on waste purposes land Due to these lat
Slide 28: AGEL's Governance: Journey so far and future glide path
AGEL’s Governance: Journey so far and future glide path Charted a glide path to internalise global best practices of governance by September 2021 JOURNEY SO FAR TARGET BY SEP 2021 Bankruptcy Remote Structure for RG1 and RG2 assets Internal Bankruptcy remote structure to be implemented for all SPVs A
Slide 29: Global Benchmarking: Adani Energy Portfolio vs. Global peers
Global Benchmarking: Adani Energy Portfolio vs. Global peers AGEL fares in line or better on various metrics with global peers Renewable Players - Capacity in GW1 EBITDA margin %2 –FY20 89% 14.40 13.99 53% 51% 48% 8.10 42% 4.86 2.97 22% Peer 3 Peer 4 AGEL Peer 2 Peer 1 AGEL Peer 2 Peer 3 Peer 1 Peer
Slide 30: Appendix
Appendix 30
Slide 31: Appendix: Project Details, Environment & Safety Focus
Appendix Adani Green Energy Limited Project Details Environment & Safety Focus
Slide 32: AGEL: Asset Level Details - Operational
AGEL: Asset Level Details - Operational Solar Wind Projects Hybrid SPV Project Name / Location Type Contracted Capacity (AC) Capacity (DC) Tariff COD Counterparty Name PPA Term AGETNL Solar 216 260 7.01 Mar-16 TANGEDCO 25 RSPL Solar 72 86 7.01 Feb-16 TANGEDCO 25 AGETNL KREL Solar 72 86 5.761 Mar-16
Slide 33: Asset Level Details - Under Construction
Asset Level Details - Under Construction Solar Wind Projects Hybrid SPV Project Name / Location Type Contracted Capacity (AC) Capacity (DC) Tariff COD Counterparty Name PPA Term AGEONEL Gujarat Solar 150 210 2.67 Nov-202 GUVNL 25 GSBPL Gujarat Solar 100 140 2.44 Aug-202 GUVNL 25 Kilaj SMPL – UPNEDA
Slide 34: Environment & Safety Focus across Project Life-Cycle
Environment & Safety Focus across Project Life-Cycle Benefit area Environment Community Land Acquisition Engineering Procurement Construction Operation Priority to set up Land resource Policy and signed Auxiliary Power From water intensive Solar and Wind plant optimization has led contracts for Tran
Slide 35: Operational & Financial Highlights
Renewables Operational & Financial Highlights 35
Slide 36: AGEL: Locked-in Growth with improving counterparty mix
AGEL: Locked-in Growth with improving counterparty mix Strong Execution Track Record… Operational (MW) UC (MW) 25,000 # 13,990 25,000 5,990 11,395 4,560 2,000 2,570 3,445 798 612 2,590 485 1,192 808 1,958 1,970 2,595 313 2,545 FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 21 FY 25E …Improving Counterparty mix
Slide 37: AGEL: Stable Operational Performance at Portfolio Level
AGEL: Stable Operational Performance at Portfolio Level Average Capacity1 (MW AC) CUF % (AC) Solar Wind 2 Solar Wind 40.13% 171 213 35.80% 89 26.97% 30.96% 31.21% 72 29.81% 60 60 72 72 25.89% 25.31% 21.42% 60 21.66% 24.81% 21.68% 20.02% 25.40% 2,148 2,148 2,164 20.08% 20.13% 1,948 19.98% 1,898 1,898
Slide 38: AGEL Financial Performance for Q1FY21
AGEL Financial Performance for Q1FY21 Particulars Q1 FY21 Q1 FY20 FY20 FY19 Total Income 878 675 2,629 2,131 Revenue from Power Supply 609 551 2,065 1,913 EBITDA from Power Supply 555 495 1,837 1,723 EBITDA from Power Supply (%) 91% 90% 89% 90% PAT 22 (97) (68) (475) Cash Profit 232 213 787 792 Robu
Slide 39: AGEL Debt Summary as on 31st March
AGEL Debt Summary as on 31st March 20 Debt Split by Currency LT vs. ST Debt Split Long Term Debt Short Term Debt Rs 13,943 Cr Foreign Debt Indian Rupee Debt Consolidated Debt Vs. 11,272 Cr. Y-o-Y 625, Average interest rate 10.7% 6,536, 4% lower by 40bps Y-o-Y Vs. 11.1% Y-o-Y 47% 13,318, Balance aver
Slide 40: AGEL: Receivables Ageing Profile
AGEL: Receivables Ageing Profile (in INR Cr) Not Due Overdue 30-Jun-20 30-Jun-20 Off Takers 0-60 days 61-90 days 91-120 days 121-180 days >180 days Total Overdue TANGEDCO1 166 131 59 42 82 313 627 NTPC2 69 0 0 0 0 0 0 SECI3 61 0 0 0 0 0 0 Others 122 18 6 6 8 10 48 Total 418 148 66 48 89 323 675 LC S
Slide 41: AGEL: ESG performance Update for Q1 FY21
AGEL: ESG performance Update for Q1 FY21 Resource Management Elongated maturity & Reduced Cost ▪ 1,255 MWH energy purchased from grid ▪ 1.3 million ton CO2 emission reduced ▪ 2,259,118 KL fresh water withdrawal ▪ 8 MT waste generated and disposed through authorized vendor ▪ 1143 Tree plantation done
Slide 42: Attractive Industry Outlook, Industry Developments, Regulatory Landscape
Appendix Adani Green Energy Limited Attractive Industry Outlook Industry Developments Regulatory Landscape
Slide 43: Attractive Outlook of Indian Renewable Industry
Attractive Outlook of Indian Renewable Industry Low Per Capita Power Consumption Untapped Solar and Wind Resources Low Generation Share Per capita power consumption (KWh) Potential Installed capacity in GW (Apr-2020) 3.0% 79.0% US: ~11.3x India 749.0 10.0% 12,984 9.0% 10,059 Expected to increase to
Slide 44: Operating in a robust and tested regulatory framework over 20 years
Operating in a robust and tested regulatory framework over 20 years Ministry of Power (MOP) Empowered Committee CEA Tariff Determination Methodology Participants/Statutory bodies under Electricity Act, 2003 Section 62 (RoA) Section 63 (TBCB) To regulate and determine/adopt the tariff and to grant li
Slide 45: Regulatory Bodies across energy landscape in India
Regulatory Bodies across energy landscape in India Ministry Ministry of (conventional) Power (MoP) / Ministry of New & Renewable Energy (MNRE) Central Electricity Authority of India (CEA) Advisory Advisory arm of MoP on matters relating to the National Electricity Policy and formulating plans for th
Slide 46: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Green Energy Limited (“AGEL”),the future outlook and growth prospects, and fut
Slide 47: Thank You
Renewables Thank You
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