Renew Energy Global Plc · NASDAQ:RNW
Renew Energy Global — Investor Presentation (February 2022)
24 slides from Renew Energy Global's investor presentation, February 2022
Slide 1: Investor Presentation
Investor Presentation February 2022 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: Our Vision: To Build The Best Renewable Energy Company In The World
Our Vision Great Place To Work 2021: World Economic Forum (WEF) UN Global Compact Network One of India’s 2021: World’s 1st India Award 2021: “To Build The best workplaces in Oil, Gas and Clean Energy Company Sumant Sinha recognized as Energy category recognized as a Global SDG Best Renewable Lightho
Slide 4: ReNew Overview
01 ReNew Overview 4
Slide 5: A Top Utility-Scale, Pure-Play Renewable Power Generation Company In India
A Top Utility-Scale, Pure-Play Renewable Power Generation Company In India And One Of The Largest Globally One Of The Largest, Pure-Play Renewable Energy A Leader In Renewable Energy Development Globally Providers In India Net Capacity in MW (Operational) (1) Net Capacity in MW (Operational) (1) 7.3
Slide 6: Highly Diversified Portfolio Of Contracted Assets
Highly Diversified Portfolio Of Contracted Assets ReNew’s Regionally Diversified Utility Portfolio(1) Largest Operating Portfolio In India(1) Commissioned Committed 7.3 GW 2.9 GW 72% 28% 99 MW 3,058 MW 100 MW 1,399 MW 578 MW Balanced Asset Mix(1) 799 MW Hydro, 0.1 GW, 1% 820 MW Solar – 4.9 GW 2,485
Slide 7: Strong Growth Through Organic And Inorganic Opportunities
Strong Growth Through Organic And Inorganic Opportunities Installed Capacity (In GW) • Aspirational goal of 18 GWs by FY 25; No new external equity needed for 18 GW 2.9 18.0 18.0 goal(3) 10.2 10.2 • ~2.8x capacity growth vs industry growth of 7.3 1.6x(2) (FY 2017-21) 5.4 5.4 5.6 5.6 4.6 FY19 FY20 FY
Slide 8: Multiple Drivers Across The Green Energy Value Chain To Provide Impetus For Future Growth
Multiple Drivers Across The Green Energy Value Chain To Provide Impetus For Future Growth Market Evolution H2 1 “Plain Vanilla” RE M&A 1 “Plain Vanilla” 2 Firm Power (RTC) RE M&A Battery Storage Corporate PPAs Hydro 1 “Plain Vanilla” Firm Power (RTC) 2 RE M&A Battery Storage Ancillary Services 3 Sma
Slide 9: Significant Opportunity In One Of The Fastest Growing Markets
Significant Opportunity In One Of The Fastest Growing Markets; ReNew Taking Leading Role In Developing Them Total Addressable Market Of ~ $200 – 270 Bn $15-20 Corporate PPAs Bn Bid Market(2) • RE provide significant savings against grid prices; corporates focused on ESG and going “green” • Target of
Slide 10: Recent JVs Demonstrate Increased Competitive Edge and Technological Advancement
Recent JVs Demonstrate Increased Competitive Edge and Technological Advancement Partnership in Green Hydrogen JV in Energy Storage Solutions • Partnership agreement to jointly develop, own, execute • 50:50 JV to bring market-leading energy storage and operate green hydrogen projects in India technol
Slide 11: Presence In All Market Segments Provides Multiple Avenues Of Growth
Presence In All Market Segments Provides Multiple Avenues Of Growth Along With Access To Higher Return Opportunities Plain Vanilla Renewable Intelligent Energy M&A Corporate PPAs Energy (RE) Solutions GWs Currently 6 - 7 GW 5 – 9 GW(1) 6 - 8 GW NA For Auction No. Of ~15 - 20 3-4 5-6 5-6 Competitors
Slide 12: Capital Discipline: Our Commitment
Capital Discipline Our Commitment Expected returns are above our cost of capital; Target attractive levered project equity IRRs of INR 16-20% 12
Slide 13: Capital Discipline and Share Buybacks
Capital Discipline and Share Buybacks Announced $250 mn share repurchase ✓ At the current share price, RNW is the company’s best return opportunity with lowest execution risk ✓ Remain confident in the future outlook for the company ✓ Accretive to previous EBITDA/share and CFe/share plan ✓ Still expe
Slide 14: Sources of Funding Buyback: Asset Sales at Higher Multiples
Sources of Funding Buyback: Asset Sales at Higher Multiples Roof Top sale Cash Total Cash in ~$70mn ~$180 mn ($1.1 bn of cash on = $250 mn balance sheet) (Evaluating minority Multiple 9.5x sales at similar valuation multiples as Rooftop) = 9.5x Current valuation of RNW is ~7.2x(1) Fully Equity Funde
Slide 15: Receivables Situation Expected To Improve Meaningfully
Receivables Situation Expected To Improve Meaningfully ReNew Is Taking Proactive Measures For Expediting Collections • Active receivable management and continuous discussions 210 / monitoring with offtakers through dedicated teams & senior management committees • Court cases filed GOI Also Prioritiz
Slide 16: Initiatives To Mitigate Supply Cost Inflation Has Shielded ReNew
Initiatives To Mitigate Supply Cost Inflation Has Shielded ReNew Risk Mitigation Under construction projects are expected Further optimization in Balance of System to have equity returns of 16 - 20% through measures such as higher efficiency modules cost has led to reduction in BoS cost by 20 - 25%
Slide 17: Active Financing and Interest Rate Risk Management Strategy
Active Financing and Interest Rate Risk Management Strategy ReNew’s interest rate profile and Potential Impact on ReNew of proposed rate hikes ~3/4th of debt is with fixed interest rate. Out of balance variable portfolio, only debt for non-SECI/NTPC and some Discom projects (<15%) could have potenti
Slide 18: Guidance
03 Guidance 18
Slide 19: Strong Growth Profile Which Is Fully Equity Funded
Strong Growth Profile Which Is Fully Equity Funded Net Debt(1) & Leverage(2) At Operating Capacity Run Rate Adjusted EBITDA Of 7.3 GWs And 10.2 GWs 7000 6 INR 420 – 435 Bn 6000 ($5,650 - $5,850 Mn) INR 83 – 90 Bn ($1,115 - $1,205 Mn) 5000 5.5 INR 61 - 66 Bn INR 311 Bn ($825 - $890 Mn) 4000 ($4,175 M
Slide 20: FY 22 Capacity Additions On Track
FY 22 Capacity Additions On Track Quarterly Additions of Installed Capacity 8.2 GW Additional Projects / acquisitions 0.65 GW 7.4 GWs 7.5 GWs 7.5 GWs 6.4 GWs 5.6 GWs 5.7 GWs FY 21 Q1 FY 22 Q2 FY 22 Q3 FY22 Q4 FY22 FY 22 Acquisition Telangana Solar SECI VI Wind Acquisition Hydro (260 MW)(2) (163.4 MW
Slide 21: Sustainability And ESG
Se re me ETC ROE eos hee AS SEE RET
Slide 22: ReNew Is Leading The Energy Transition In India
ReNew Is Leading The Energy Transition In India And Is Committed To Global Sustainable Development Goals Our ESG Initiatives Partnerships With Environment Social Ranked among top 10 renewable Distributed packets of dry ration to the poor, energy producers, globally on ESG health kits to frontline wo
Slide 23: Impacting Communities With Sustainability Initiatives
Impacting Communities With Sustainability Initiatives ReNew Women India Initiative (ReWIN) Lighting Lives – Electrification Of Schools Community-Based Water Management ReNew Scholarship For Exceptional Talent (ReSET) 23 Source: Company Information
Slide 24: Thank You
Thank You For further inquiries please contact IR@renewpower.in 24
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