Adani Transmission Limited I n v e s t o r P r e s e n t a t i o n - PowerPoint PPT Presentation

Adani Transmission Limited I n v e s t o r P r e s e n t a t i o n September 2018 | STRICTLY PRIVATE AND CONFIDENTIAL

Index A Introduction to Adani Group and Adani Transmission Limited Sector Dynamics – Strong Fundamentals Supporting Growth B C Regulatory Framework D Financial and Operating Highlights E Investment Rationale F Appendix ATL Holding and Capital Structure 1 Financial Highlights 2 1

Introduction to Adani Group and Adani Transmission Limited A STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL

Adani Group: India’s Largest Infrastructure Conglomerate ~INR 1,972 Bn / ~INR 1,171 Bn / US$ 29,000 Mn US$ 17,218 Mn Asset base (2) Market Cap (1) Gautam Adani, Group founder First generation entrepreneur, one of the leading businessmen of India with 30+ years experience 50+ 23,200+ Presence in 50+ countries Human Capital (3) Resources Logistics Energy  Largest commercial port  Largest private sector  Large mining operations developer & operator with thermal power producer  Largest integrated coal 10 ports & terminal –  Largest private sector management operation 335MMT capacity transmission  Edible oils & Agri  Integrated logistics player  largest power distribution commodities with SEZ advantages business  Integrated solar  Only listed renewable photovoltaic power producer in India - manufacturing Largest Solar operations 3 Note: US$/INR: 68; (1). Combined market capitalization of all listed Adani Group companies (as of 30-June-2018); (2). Combined asset base of all listed Adani Group companies (as of 31-Mar-2018); (3). Includes ~12,200 of Mumbai GTD

Adani Transmission Limited (‘ATL ’): At a Glance Operational - T Under-Construction Operational - D 540 ckms 8,470 ckms 3,530 ckms 3,000 MVA 13,990 MVA 2,215 MVA 500 MW 3 million + ~INR 310 Bn / 22 years ~99.9 % Presence Across High-Value Distribution Average Residual US$ 4,563 Mn Availability 9 States Consumers Asset base (1) (Fully built) Concession Life (FY18) INR 103 Bn / 91% BBB- / AA+ 74% / 26% US$ 1,510 Mn EBITDA Margin International Investment Fixed Return / Fixed Tariff (FY18) Approved Tariff Order Grade Rating Asset Base (1) (Fully Built) Largest Private Pure-play Integrated Transmission and Distribution Player in India 7 Out of 9 Under Construction Projects Commissioning in 2018-19 4 Note: US$/INR: 68; (1). Including under-construction and under-acquisition assets on project cost basis and existing assets on book value basis

Largest Pure-play Integrated Transmission and Distribution Play in India Pan-India presence with attractive mix of central / state and fixed return / fixed tariff projects Central vs State Capacity Operational Assets – 8,470 Ckm & 13,990 MVA Distribution Projects Under Execution – 3,530 Ckm & 2,215 MVA (Ckt Kms) Centre Mohindergarh Electrode PPP-8 line State Mundra - Mohindergarh Mohindergarh-Bhiwani 36% Alwar- Hindaun 12,540 Ckt Mohindergarh-Dhanoda Kms (1) PPP-9 64% Ajmer – Deedwana Bikarner – Deedwana Gwalior - Morena Deedwana – Sujangarh Fatehgarh Bhadla Ghatampur Suratgarh-Bikaner Fixed Return vs Fixed Tariff Sasan - Vindhyanchal Distribution PPP-10 Tiroda Vindhyanchal STPP - Mundra - Dehgam Vindhyanchal (In Terms of Asset Base) Mundra Electrode Chandwa- Fixed return Northkaranpura-Gaya WRTG 26% Fixed tariff Raigarh – Champa - BSES Dharamjaigarh WRTM INR 310 Bn Sipat – Bilaspur - 35% Rajnandgaon /US$ 4,563 LILO of Aurangabad- Transmission Padghe line Mn (2) Raipur – Rajnandgaon - Akola-I – Akola-II Warora 39% 2X Tiroda – Koradi- Distributio 74% Tiroda – Warora Akola - Aurangabad n 5 Note: US$/INR: 68; (1). Including under-construction and under-acquisition assets; (2) Including under-construction and under-acquisition assets on project cost basis and existing assets on book value basis

Mumbai GTD – Asset Overview One of the largest private sector power distribution players in the country supplying power to 3 mm customers. Mumbai Power Generation-Transmission-Distribution  Stable business with assured post tax RoE of 16% approved by MERC  1,892 MW of power distribution  Annual energy requirement of ~10,800 Mus  c. 3mn customers  9 decade old distribution franchisee with license valid till August 2036  500 MW of power generation at Dahanu  LT PPA with Mumbai Distribution  LT FSA with Coal India  Serving 3 mm customers with power reliability of 99.99%  3,000 MVA of transformation capacity  System losses below 9% as compared to India  540 circuit kms 220 kV transmission line average of ~22%(3) The proposed transaction will mark ATL ’s foray into distribution space and also strengthen ATL ’s footprint in the power transmission sector 6 (1) LT PPA = Long Term Power Purchase Agreement; (2) LT FSA = Long Term Fuel Supply Agreement; (3). Source: UDAY website

Electricity Distribution: Regulated Business with Upsides Distribution business provides the benefits of a long term asset with regulated returns and high cash flow visibility, while also giving the potential of leveraging multiple operational and technological upsides. Mumbai Distribution Business Long Term Growth Nature of Customers Operational Excellence Near Term Upsides Upsides  High quality 3mm+  Low cost supply from  Enhance  Develop next- retail customers existing plants distribution revenue generation digital technologies  Best in class  One of the lowest  Improve penetration  Smart grid and smart credit profile losses in the industry in the existing market metering  High propensity to  Regulated return  Increase  Cross sell pay on capex O&M efficiency opportunities  High stickiness  Develop real estate  Ancillary services  Cross sell opportunity opportunities (e.g. EV charging stations etc.) 7

Growth: Customer Base and Energy Consumed Customers (Mn) Energy Wheeled (MU) Max Demand (MW) 11154 1,884 3.00 8,270 1,509 2.73 FY09 FY17 FY09 FY18 FY09 FY18 Consistent with the growth of Mumbai @ 3% CAGR 8

Growth: Network Network Length (Kms) PT Capacity (MVA) 3,600 2,492 5,933 3,619 4,618 3,860 FY09 FY18 FY09 FY18 HT Cable LT Cable DT Capacity (MVA) Distribution Loss (%) 10.59% 4,860 8.12% 3,923 FY09 FY18 FY09 FY18 Adequate Network Augmentation commensurate with Demand 9

Diversified Counterparty Risk and Receivable Profile Attractive mix of central / state counterparties, in conjugation with strong contractual protections limit overall payment risk Receivable Profile Off-taker Mix Credit Profile of Off-takers In terms of Ckt Kms (FY18) In terms of Ckt Kms (FY18) Average Receivable Days (FY18) State B (RERC) (RERC) 5% 5% BB- State 45 (MERC) (MERC) 19% 19% AAA Central (PGCIL) (PGCIL) 76% 76% 30 BSES Consumer Mix (FY17) BSES Sales Mix (FY17) In terms of MU (FY17) In terms of no. of consumers (FY17) HT Industrial HT Industrial 3% 15% Commercial + LT Ind. 17% Central (PGCIL) State (MERC / Residential RERC) Commercial + 42% LT Ind. Residential 43% 80% Track record of robust receivable profile with no direct exposure to bilateral counterparty / user 10

Transforming to an Integrated Model Mumbai GTD acquisition creates India’s largest pure-play integrated transmission and distribution entity and will position ATL to leverage the next phase of growth. 1 High barriers and limited competition providing natural advantage Mumbai GTD: Robust Perpetuity like concession , with extensions in 25 year intervals (last Business 2 extension in 2011) with stable cash flows Characteristics Maximizing Returns • Enhance efficiency : AT&C, Finance, Heat Rate and Availability 3 • Assets sweating • Fibre + Tower leasing • Upsell/ cross sell of FMCG/ service solution to customers 11

Focussed Strategy to Leverage Growth Opportunity • Focus on distribution opportunities - SEZ, Second license option, franchise, open access customers Aiming to pursue, One Adani One Bill to cater to smart colony and smart home • • Revisiting our geographic strategy in terms of risk-reward prospective for international projects Near Term Transmission Bidding Opportunity: Out of total c. INR 2,600 Bn / US$ 38 Bn opportunity in the • next 5 years, clear visibility for new projects to be bid out in the next 12 months Central Projects State Projects 8 TBCB INR 29 Bn / 8 TBCB INR 72 Bn / Projects US$ 429 Mn Projects US$ 1,056 Mn ATL ’s capabilities position it well to leverage opportunities across transmission and distribution. 12 Note: US$/INR: 68;

Sector Dynamics Strong Fundamentals Supporting Growth B STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL

Electricity Sector Fundamentals Remain Robust Strong Demand For Electricity further supported by Renewable Sector Growth Electricity demand expected to grow at 7%+ in Exponential growth in renewable sector the medium term (1) foreboding well for transmission sector (1) (Billion Units) (GWs) 225 3.3x CAGR: 2,509 7.7% 45 1,691 3.5x 113 1,115 69 5.1x 13 22 67 2.0x 34 FY2018 FY2022 FY2016 FY2022 FY2027 Transmission Sector Capacity Addition Poised for Significant Growth 14 Note: (1). Forecast based on Draft National Electricity Policy