Azure Power Global Limited · OTC:AZREF
Azure Power Global — Q3 FY2017 Earnings Presentation
23 slides from Azure Power Global's earnings presentation, Feb 14, 2017
Slide 1: Earnings Call Q3 FY17
Picture: 100 MW, Jodhpur, Rajasthan Largest Solar Power Plant under National Solar Mission policy Earnings Call India’s first private grid connected solar plant over one megawatt India’s first distributed rooftop solar project over one megawatt 14th February 2017 Pan India portfolio of solar assets
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: 1,071 MW Diversified Portfolio; Majority of Contracts with Sovereign Entities
1,071 MW Diversified Portfolio; Majority of Contracts with Sovereign Entities Total portfolio of 1,071MW • 512 MW (AC) operational , 559 MW under construction & committed • 27 operational utility projects, 12 under construction or committed utility projects and 700+ rooftops operating or under imple
Slide 5: Started 2017 with Early Commissioning of Our Largest Plant to Date, Below Budget
Started 2017 with Early Commissioning of Our Largest Plant to Date, Below Budget 150MW (2) | PUNJAB 4 Largest solar project in the state of Punjab, Apart from electrifying the vicinity, the 25 Year PPA with Punjab State Power Corporation project will create an estimated 1,000 jobs Ltd at INR 5.63 (U
Slide 6: Largest Operating Project Under National Solar Mission
{ 100 MW, LARGEST OPERATING PROJECT UNDER NATIONAL SOLAR MISSION val . = ED USE OF SOLAR POWER FOR LEADING GLOBAL COMPANIES TAY gee
Slide 7: 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 8: Supportive Regulation, Robust Demand, Abundant Solar Resource and Falling Cost Driving Solar Growth
Supportive Regulation, Robust Demand, Abundant Solar Resource and Falling Cost Driving Solar Growth Supportive Regulation High Growth Market • Government solar target of 100GW • 4.2GW of bids in process across the by 2022 supported by Renewable sector Purchase Law(1) • 20 GW of new projects to be au
Slide 9: Commercial and Industrial Rooftop Solar Provides Growth Upside
Commercial and Industrial Rooftop Solar Provides Growth Upside 14MW(5) | DMRC | DELHI Rooftop 4 14MW PPA allotted to Azure Power is one of Azure Power has total rooftop capacity of the largest to any company by DMRC 52MW across 11 states with 700+ roofs under Committed & implementation Azure’s tarif
Slide 10: Effective Strategy & Strong Execution Drives 106% YoY Increase in Operating MW
Effective Strategy & Strong Execution Drives 106% YoY Increase in Operating, High Quality MW during Q3 FY’17 523MW DC (512MW AC) Operating 1,071MW Operating & Committed US$14mn Revenue 106% increase(1) 33% increase(1) 46% increase(1) 416.9mn kWh Generation US$0.65mn Project Cost/MW US$163mn Portfoli
Slide 11: Adjusted EBITDA Margin Expansion Driven by Cost Management
Adjusted EBITDA* Margin Expansion Driven by Cost Management 49% growth in Adjusted EBITDA in Q3FY’17 vs Q3FY’16 12,000 4,431 494 587 10,254 10,000 In US$ Thousands 8,000 6,903 6,000 4,000 2,000 0 Q3FY'16 Adjusted Additional Revenue Cost of Revenue General & Administrative Q3FY'17 Adjusted EBITDA Exp
Slide 12: A Growing Balance Sheet with a Strong Liquidity Position
A Growing Balance Sheet with a Strong Liquidity Position March 31, 2016 December 31, 2016 (in thousands) (in thousands) INR INR US$ Cash, Cash Equivalents and Current 3,090,386 8,420,170 123,972 Investments Property, Plant & Equipment, Net 24,381,429 37,243,499 548,344 Total Debt* 20,487,951 28,617,
Slide 13: Ready Access to Capital
Ready Access to Capital The Company raised equity of INR9,261.8 million (US$136.4 million) during the quarter ending December 31, 2016 from its initial public offering and concurrent private placement The Company has drawn INR5,315.2 million (US$78.2 million) of project debt during the quarter and h
Slide 14: Guidance
Guidance US$64-68 million Revenue* for FY17 950-1,050 MW Operating by December 31, 2017 (Q3 FY18) ___________________________ *Assumes 67.92 INR/US$ 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 Nine Months Ended December 31 Three Months Ended December 31 (in thousands) (in thousands) 2015 2016 2016 2015 2016 2016 INR INR US$ INR INR US$ Net loss (1,061,400) (884,841) (13,028) (372,861) (514,297) (7,573) Income tax expense/ (be
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 December 31, 2015 2016 INR INR US$ Nominal contracted payments 206,588,831 256,312,193 3,773,737 (in thousands) ………………… Total e
Slide 19: Project List- Operational (Utility)
Project List- Operational (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW) (2) (INR/kWh) Date(1) Years Punjab 1 Q4 2009 2 17.91 NTPC Vidyut Vyapar Nigam Limited 25 Gujarat 1.1 Q2 2011 5 15.00(4) Gujarat UrjaVikas Nigam Limited 25 Gujarat 1.2 Q4 2011 5 15
Slide 20: Project List- Operational, Under Construction & Committed (Utility)
Project List- Operational, Under Construction & Committed (Utility) Commercial Duration Capacity Tariff Project Names Operation Off taker of PPA in (MW)(4) (INR/kWh) Date(1) Years Operational Punjab 4.1 Q4 2016 50 5.62 Punjab State Power Corporation Limited 25 Punjab 4.2 Q4 2016 50 5.63 Punjab State
Slide 21: Project List- Commercial Rooftops
Project List- Commercial Rooftops Commercial Duration Capacity Project Names Operation Off taker of PPA in (MW)(4) Date(1) Years Operational Gujarat Rooftop 2013 2.500 Torrent Power Limited 25 DLF (total) 2013-2016 1.898(2) DLF Limited 25 Uttar Pradesh Rooftop 1 Q1 2015 0.555 Indosolar Limited 25 De
Slide 22: Debt Schedule
Debt Schedule Outstanding Principal Amount (In thousands) Type of Interest Currency Maturity Date(1) Name of Project INR US$ Punjab 1 218,499 3,217 Fixed US$ 2024 Punjab 2 1,711,000 25,191 Floating INR 2030 Gujarat 1 1,215,729 17,900 Fixed US$ 2025 Gujarat rooftop 118,010 1,738 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 50% of project costs in year 1 and the rem