Adani Green Energy Limited · NSE:ADANIGREEN

Adani Green Energy — Debt Investor Presentation (May 2019)

29 slides from Adani Green Energy's debt investor presentation, May 2019

  1. Slide 1: Adani Green Energy Limited – Restricted Group Roadshow Presentation

    Strictly Private and Confidential ADANI GREEN ENERGY LIMITED – RESTRICTED GROUP Roadshow Presentation May 2019

  2. Slide 2: Confidentiality and Disclaimer

    Confidentiality and Disclaimer The securities described in this presentation (the ‘Notes’) are being issued by three Co-issuers (as defined herein). The Co-issuers are wholly owned subsidiaries of Adani Green Energy Limited (“AGEL”) and together are the Restricted Group. AGEL is not providing a guar

  3. Slide 3: Summary Terms of the Notes

    Summary Terms of the Notes 3 subsidiaries of Adani Green Energy Limited (“Parent”) issuing green bonds under a single ISIN and CUSIP Co-Issuers ̶ Prayatna Developers Pvt Ltd (“PDPL”), Parampujya Solar Energy Pvt Ltd (“PSEPL”), and Adani Green Energy (UP) Ltd (“AGE(UP)L”) Guarantor The Notes will be

  4. Slide 4: Contents

    Contents 1 Adani Group 2 Adani Green Energy Limited 3 Restricted Group 4 Transaction Structure A Appendix STRICTLY CONFIDENTIAL

  5. Slide 5: 1. Adani Group

    1. Adani Group STRICTLY CONFIDENTIAL

  6. Slide 6: Adani Group – Leading Energy & Infrastructure Conglomerate in India

    Adani Group – Leading Energy & Infrastructure Conglomerate in India Pit to Plug Integration in Energy Value Chain Presence Across Transport & Logistics Space India’s Leading Renewable Player: 4,560 MW India’s Leading Ports Operator: 200 MMT India’s Leading Thermal Player: 10,440 MW India’s private R

  7. Slide 7: Adani Group – Largest Integrated Energy Player in India

    Adani Group – Largest Integrated Energy Player in India Adani Group’s End to End Integration in the Energy Value Chain… Input Resource / Equipment Generation Distribution, Transmission, Utilities Integrated Coal Panel Trans. & Management Manufacturing Thermal Power Renewables Solar Park Distribution

  8. Slide 8: Adani Group – Track Record of Delivering World Class Assets

    Adani Group – Track Record of Delivering World Class Assets Leveraging Core Strengths… …to Deliver World Class Assets  Large Scale Businesses Delivering Consistent Growth 648 MW Ultra  Mundra Port: India’s Largest Commercial Port Mega Solar  Mundra-Mohindergarh 1,980 Ckt Km: One of the Longest Pr

  9. Slide 9: 2. Adani Green Energy Limited (“AGEL”)

    2. Adani Green Energy Limited (“AGEL”) STRICTLY CONFIDENTIAL

  10. Slide 10: AGEL – Leading Pan India Renewable Player, Well Diversified Portfolio

    AGEL – Leading Pan India Renewable Player, Well Diversified Portfolio 86.5% 4,560 MW1 100% ~$2bn Adani Family 57 Locations in 11 States 25 Year PPAs Asset Base2 Amongst the Largest Renewable Utility Players in India3 Diversified Geographical Footprint4 Total Capacity (MW) TS AP CG 2.4% 1.2% MH 7,454

  11. Slide 11: Renewables – Attractive Industry Outlook

    Renewables – Attractive Industry Outlook Low Per Capita Power Consumption Untapped Solar and Wind Resources Low Share in Generation Mix1 Per capita power consumption (KWh) Potential Installed capacity in GW (Apr-2019) Renewables US: ~11.3x India 22% 12,984 749.0 China: ~3.4x India 28.2 GW expected 1

  12. Slide 12: AGEL – Strong Execution Expertise and World Class O&M Capabilities

    AGEL – Strong Execution Expertise and World Class O&M Capabilities Strong Execution Expertise World Class O&M Capabilities  Deep know-how of land procurement laws in states Key O&M Unique Land across India Focus Areas Innovations Benefits Acquisition &  Experience in obtaining regulatory approvals

  13. Slide 13: AGEL’s Strategic Priorities

    AGEL’s Strategic Priorities Growth and  Vision to be one of the leading Indian renewable players Returns Focus  Disciplined investment decisions framework to add incremental shareholder value Optimal Capital  Leverage internal accruals to drive RoE with accretive growth Management  Commitment to

  14. Slide 14: 3. Restricted Group (“RG”)

    3. Restricted Group (“RG”) STRICTLY CONFIDENTIAL

  15. Slide 15: Ring Fenced Obligor Group with Documented Pool Protection Features

    Ring Fenced Obligor Group with Documented Pool Protection Features US$[ ] [5.5 year] USD Notes USD Notes Offshore India Sponsor Adani Green Energy Limited (“AGEL”) (Listed on NSE & BSE) Ring Fenced Issuers 100% 100% 100% Prayatna Parampujya Adani Green Developers Solar Energy Energy (UP) INR Loans P

  16. Slide 16: Diversified Pool of Operating Solar Assets

    Diversified Pool of Operating Solar Assets Asset Presence Across High Irradiation Diversified Geographic Diversified Mix of Offtakers Zones in India Footprint RJ MH AP 2.2% 2.2% State Owned 5.4% Offtakers UP 43% 10.8% 40% Baa2/BBB-/BBB- TS 930 KA 930 International rating1 100 MW 10.8% MW 47.3% PB 10

  17. Slide 17: Robust Operating Metrics

    Robust Operating Metrics… High Plant Availability High Grid Availability 99.9% 100.0% 99.7% 99.5% 99.4% 99.5% 99.6% 99.4% 99.5% 99.4% 99.5% 98.9% 99.1% 98.5% 98.2% 98.0% 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 Co

  18. Slide 18: …Leading to Strong Financial Performance

    …Leading to Strong Financial Performance Revenue (US$mm)1 Adj. EBITDA (US$mm) and EBITDA Margin (%)2 127 EBITDA (US$mm) EBITDA Margin (%) 111 87.3% 69.3% 35 24 0 (1) FY17 FY18 FY19 FY17 FY18 FY19 Total Assets (US$mm) Net Debt3 and Shareholders’ Equity4 (US$mm) Net Debt (US$mm) Shareholders’ Equity (

  19. Slide 19: High Degree of Visibility on Steady State EBITDA Throughout PPA Life

    High Degree of Visibility on Steady State EBITDA Throughout PPA Life No Execution Risk Long Term PPAs Low O&M Cost  High quality equipment  Automated & centralized operations Remaining life: 930 Operating 930 100% 20-25 years  Remote Operations & Nerve Center MW MW 100%  Real time monitoring  A

  20. Slide 20: Pro Forma Capitalization

    Pro Forma Capitalization Current (Mar-19) Pro Forma (Mar-19)1 xFY20E Adj. Adj. xFY20E Adj. US$mm US$mm EBITDA (US$mm) EBITDA Existing External Indebtedness $513 4.0x ($513) - - Capital Creditors $119 0.9x ($119) - - Senior Secured USD Notes - - $500 $500 3.9x Senior Secured INR Term Loans - - $159 $

  21. Slide 21: 4. Transaction Structure

    4. Transaction Structure STRICTLY CONFIDENTIAL

  22. Slide 22: Structural Protection to Debt Investors (1/2)

    Structural Protection to Debt Investors (1/2) • Bankruptcy remote Obligor Group operating Project Assets Summary Cashflow Waterfall1 • 100% amortizing debt (INR debt/ designated accounts) over PPA life Standard • Cashflow waterfall mechanism Project Finance Features • One semi-annual period equivale

  23. Slide 23: Structural Protection to Debt Investors (2/2)

    Structural Protection to Debt Investors (2/2) 1. Project Life Cover Ratio (PLCR): Finite PPA life and generation/ O&M risk • NPV of EBITDA over PPA life divided by Senior Debt should be higher than threshold PLCR (1.6) • Cash sweep , if required to align with threshold PLCR 2. Capex Reserve: Degrada

  24. Slide 24: RG Credit Quality Maintained Through Structural Protections

    RG Credit Quality Maintained Through Structural Protections Structural Protections Others 43% Offtaker 930 Govt. of India • Pool protection: Govt. of India Owned profile MW Owned A offtake profile to be maintained 57% Others 10% UP • Debt sizing to be based on new CUF report 11% from independent con

  25. Slide 25: Highest Rated India Renewable Offering

    Highest Rated India Renewable Offering Expected Ratings BB+ BB+  Unlike other rated issuances from most of the Indian restricted groups, the issuers will directly own  The pool has low operating correlation, operating assets and are not meagre lender to the providing meaningful diversity with oper

  26. Slide 26: AGEL’s Restricted Group – A Compelling Investment Opportunity

    AGEL’s Restricted Group – A Compelling Investment Opportunity  Adani Group: Largest Energy & Infrastructure Conglomerate in India Strong  World class project execution skills and O&M capabilities Sponsorship of Adani Group  Multiple relationships and touch points across relevant stakeholders acro

  27. Slide 27: A. Appendix

    A. Appendix STRICTLY CONFIDENTIAL

  28. Slide 28: Restricted Group – OEM Details

    Restricted Group – OEM Details Module supplier Inverter supplier WUXI Suntech Jinko Solar 3% Mundra Solar Hitachi 7% PV Limited 16% 34% Hanwha Q-Cell 14% Canadian Solar 19% Huawei First Solar 84% 23%  All modules sourced from tier 1 modules suppliers1. Further,  Amongst the first to adopt string i

  29. Slide 29: Thank You

    THANK YOU

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