Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Debt Investor Presentation (August 2023)
44 slides from Adani Energy Solutions's debt investor presentation, August 2023
Slide 1: Adani Energy Solutions Limited Credit Presentation
Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Credit Presentation August 2023
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio About AESL and Business 09-13 Philosophy 15 Transmission 17-19 Distribution 21-23 Smart Metering 25-26 District Cooling ESG Framework, Investment Case 28-30 and Board and Management 32-42 Annexure
Slide 3: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Infrastructure and Utility Primary Industry Flagship Emerging B2C Core Portfolio Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to Consumer Mining (56.3%) (63.2%) (67.7%) (70.9%) (62.9%) (100%) AGEL AESL APSEZ Cement
Slide 5: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x Growth 4x EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x Growth 1.4x APSEZ Adani’s Core Infra. Platform – AGEL 320 Mn U
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Centre of Excellence Project Management & Assurance Group AIMSL* Policy - Strategy - Risk Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisi
Slide 7: AESL: A platform well-positioned to leverage growth opportunities
AESL: A platform well-positioned to leverage growth opportunities in energy domain RAB expansion through Execution Prowess Strategic Presence Asset Hardening in Mumbai Discom Transmission Network of Transmission - Presence in 14 states Development 19,820 ckm(1) Distribution - Integrated utilities ca
Slide 8: About AESL
adani Energy Solutions Adani Energy Solutions Ltd. (formerly known as Adani Transmission Ltd.) adani Energy Solutions =i, Smart Metering About AESL
Slide 9: AESL: Business Snapshot
AESL: Business Snapshot IHC 1.4%(1) Adani Family 70.9% GQG 6.6%(3) Public Shareholding 21.1% Transmission Distribution Smart Metering District Cooling 100% 25.1%(2) 74.9% 100% 100% 100% 100% AEML MUL Section 63 Section 62 Mundra Parallel License (under approval): AMI Projects of 16 million meters BO
Slide 10: Transformational Journey with Robust Growth and Credit Discipline
Transformational Journey with Robust Growth and Credit Discipline EBITDA (Rs. Crs) 6,101 5,493 5,066 4,519 2,937 3,113 1,997 2,005 FY16 FY17 FY18# FY19 FY20 FY21 FY22 FY23 Transmission Distribution Net Debt to EBITDA(2) (x) Gross Fixed Assets(3) (Rs Crs) AESL is Investment grade rated since FY16 4.2
Slide 11: Business Philosophy focusing on De-risking at every stage of project lifecycle
Business Philosophy focusing on De-risking at every stage of project lifecycle DE-RISKING AT EVERY STAGE Route Identification & Survey Project Execution − Complex projects experience: Completed HVDC project − Route alignment on topographic maps to optimize route & (~1000 kms) in a record time of 24
Slide 12: Project Management & Assurance Group (PMAG)
Project Management & Assurance Group (PMAG) - End to End Project Integration Bidding, Site Scouting Project Development & Basic Engineering Execution Operations Concept Integrated Project Management Commissioning Strength: Team of 90 professionals having hands-on experience of 2,000+ man-years of co
Slide 13: Capital Management Philosophy to achieve growth at scale with capital discipline
Capital Management Philosophy to achieve growth at scale with capital discipline AESL is the only private sector transmission and distribution company in India with International IG Rating – Long life contracted assets with sovereign counterparties in a stable regulatory regime (Transmission: 35 yea
Slide 14: Transmission
lani Energy Solutions
Slide 15: Transmission Business
Transmission Business Transmission Section 63 Section 62 Key Characteristics (Fixed tariff1) (RAB Assets) Concession Life : 35 years 29 Transmission Assets 5 Transmission Assets Counterparty : Network pool (Centre and State) 9 Under-construction 1 Under-construction 20 Operating Assets 4 Operating A
Slide 16: Distribution
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission Distribution 14
Slide 17: Distribution Business
Distribution Business Distribution Section 62 (RAB Assets) AEML MUL Parallel Licensing Key Characteristics (applied and proposed) Mumbai Mundra SEZ License period: Perpetual 400 sq km license area 85 sq km license area • Navi Mumbai & Thane • Gautam Buddha Nagar Regulated Asset Base: Regulated Asset
Slide 18: AEML Distribution: India's No. 1 power utility
AEML Distribution: India's No. 1 power utility, as per MoP, McKinsey, PFC (Scored 99.6/100) Largest Integrated utility in India’s Commercial Capital - Mumbai AEML – Key Milestones Since Acquisition RAB Addition (Rs Crs) Capitalised RAB (Rs Crs) About Mumbai 4,619 CAGR of 8% 8th Most Populous City in
Slide 19: MPSEZ Utilities Limited (MUL) - Overview
MPSEZ Utilities Limited (MUL) - Overview Mundra SEZ is strategically located with well developed supporting RAB(1,2) (Rs Cr) infrastructure serving as an attractive industrial hub – Electricity Distribution for Mundra SEZ area 51%, RAB FY23 49%, 41 Rs 81 Cr 39 – 160 Kms Distribution network MUL (84
Slide 20: Smart Metering
adani Energy Solutions Smart Metering
Slide 21: Smart Metering Business
Smart Metering Business Smart Metering Key Characteristics DBFOOT (Totex Model) Payment Security through Direct Capex + Opex Contract period: 10 Years debit facility Under Implementation Counterparty: Pool of over 80 Enhanced energy efficiency and RE million consumers integration 7 Contracts (16.2 M
Slide 22: Smart Metering Contractual Framework
Smart Metering Contractual Framework Payment Flow under the Direct Debit Facility Agreement (DDF Agreement) Key Highlights of the Contractual Framework Online consumers Chosen Payment Direct Debit A/C Bank Account of payments and Gateway Agent Bank AMISP recharges Implementation model – Design, Buil
Slide 23: Market Dynamics – Smart Metering Business
Market Dynamics – Smart Metering Business – AESL’s Market Share (LOA and L1) – 31% out of 109 Mn Smart Meters tendered so far – Untapped market – 141 Mn Smart meters Total Smart Meters Punjab Uttarakhand Awarded AESL LoA awarded, 31% Uttar Pradesh 20.7% Rajasthan Assam 69% Bihar 773K Madhya Pradesh
Slide 24: District Cooling
District Cooling 24 Picture source: GIFT City DC Plant
Slide 25: District Cooling Business
District Cooling Business The District Cooling System (DCS) produces chilled water in a central plant and distributes cooling capacity in the form of chilled water from the central plant to multiple buildings through a network of underground pipes for use in space and process cooling. − Opportunity
Slide 26: Four key segments to drive India's DCS demand
Four key segments to drive India’s DCS demand Cumulative Cooling Demand from key segments by FY30(1) (in Mn TR) Commercial Real To experience growth from 0.6 bn sqft (2019) 16% 84% 44.04 Estate to 1 bn sqft (2030) Global industrial cooling market, expected to 2.66 Industrial Cooling 20% 80% reach ~$
Slide 27: ESG Framework and Investment Case
ESG Framework and Investment Case 27
Slide 28: AESL: ESG Framework
AESL: ESG Framework United Nations GHG Protocol SBTi Global Compact Guiding IR framework Policies Guiding Principles and TCFD reporting CDP disclosure principle Disclosure Standards UN Sustainable GRI Standards Development Goals Policy Structure Focus Areas ESG • Environment Policy UNSDG aligned: E
Slide 29: AESL: Compelling Investment Case
AESL: Compelling Investment Case − Evolved and stable regulatory regime has enabled growth of AESL’s business into multiple segments (Transmission, Favorable Industry Distribution, Smart metering, District cooling) within energy domain Landscape − Focus on Grid reliability, consumerism and shift to
Slide 30: AESL: Board and Management Team
AESL: Board and Management Team Managing Strong Sponsorship Independent Directors Director Mr. Gautam S. Adani Mr. Rajesh S. Adani Mr. Anil Sardana Mr. K. Jairaj Dr. Ravindra H. Mrs. Meera Shankar Ms. Lisa MacCallum (Chairman) (Director) (MD, AESL) Dholakia Skilled and Experienced Management Team Mr
Slide 31: Annexures
31-35 ESG Initiatives Annexures 36 Regulatory Framework Capital Management Case Study and 37-38 Credit Ratings 39 Smart Metering – Key Benefits 40-42 Project Level Details – Asset Portfolio 31
Slide 32: Environment: Key Environmental Indicators and Milestones
AESL: Key Environmental Indicators and Milestones Key Performance Indicators Current Status Baseline Medium to Long-term Targets Energy Mix & Emission Intensity AEML has achieved 30% renewable in power mix in March 30% by 2023 - RE share in power procurement 3% 60% by FY27 2023 (achieved) The target
Slide 33: Social: Key Social Indicators and Milestones
AESL: Key Social Indicators and Milestones Target Material Categories Material Themes Key Performance Indicators Baseline (FY23-24) Zero Rate of fatalities per million hours worked Zero (FY 20-21) Work related injury Rate of recordable work-related injuries per million man-hours 0.33 Zero worked (FY
Slide 34: Governance: Key Governance Indicators and Milestones
AESL: Key Governance Indicators and Milestones Material Categories Material Themes Key Performance Indicators Baseline Actions Taken and Goals 16.6% - women Board Gender Balance the board composition in terms of men • % of women directors in board improved to Board Gender Diversity directors in boar
Slide 35: AESL: Enhanced Safety Culture
AESL: Enhanced Safety Culture Safety Initiatives During Q1FY24 Safety Performance in Q1FY24 • Safety training: 47,130 man-hours of safety training and awareness during Q1 FY24 Transmission Distribution (AEML) • Positive Safety Culture: Safety Parameters Q1FY24 Q1FY23 Q1FY24 Q1FY23 o Enhanced safety
Slide 36: Attractive Industry Opportunity supported by Stable Regulatory Regime
Attractive Industry Opportunity supported by an Evolved and Stable Regulatory Regime EA 2003 ROA Distribution TBCB (AEML) Section 62 (ROA) Tariff Method - Multi Year (5 yr) Tariff Section 63 (TBCB) Tariff Method – License Period Basis Services O&M Power Procurement All other Costs Expenses Costs cos
Slide 37: Case Study: Transformational Capital Management Plan at AEML
Case Study: Transformational Capital Management Plan Resulting in Value Unlocking at AEML (India's No. 1 Power Utility) Capital structure High quality stable Elongated maturity Diversified and deep consistent with cashflow profile to ensure Fully funded long term reflecting perpetual nature investor
Slide 38: AESL and AEML Credit Ratings
AESL and AEML Credit Ratings International – ATSOL Obligor Group (Transmission business) (Reg S/ 144A) SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable AESL India Ratings AA+ Negative AESL ICRA A1+ Stable Moody’s Dollar B
Slide 39: Smart Metering – Key Benefits
Smart Metering – Key Benefits Technology transformation Real time information Two-way communication Key technology towards the Measures electricity consumption & Between the meter and the power utility through transformation of power sector in India communicates the consumption reading to the cellul
Slide 40: AESL's Operational Asset Portfolio (T&D) as of August 2023
AESL’s Operational Asset Portfolio (T&D) as of August 2023 Adani Energy Solutions Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP Bikaner Obra-C Lakadia WRSS – Jam ATIL MEGPTCL AEML MUL ATBSPL ATRL RRWTL CWRTL FBTL GTL APTL
Slide 41: AESL's Under-construction Transmission Asset Portfolio
AESL‘s Under-construction Transmission Asset Portfolio as of August 2023 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% Since AESL’s evolution its Transmission Network 100% 100% (ckms) has grown 3.5x and expanded into Distribution Khavda- MP Kharghar AEMIL KPS-1 NKTL WKTL Bhu
Slide 42: AESL's Smart Metering Under-construction Portfolio
AESL‘s Smart Metering Under-construction Portfolio as of August 2023 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% BEST APDCL APEPDCL APCPDCL APSPDCL MSEDCL MSEDCL BEST Smart Adani Energy Adani Energy Adani Energy Bhandup Baramati Zone NE Smart Metering Ltd. Solutions Step Soluti
Slide 43: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Energy Solutions Limited (together with its subsidiaries, the “Company” or “AESL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 44: Thank You
MUSHKILON KI adani 4 NAHI SUNTE, HUM KARKE DIKHATE HAIN, #HumKarkeDikhateHain @ adani Energy Solutions Thank You
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