Suzlon Energy Limited Q4 FY 2010-11 Earnings Presentation 14 th May, 2011 Suzlon windfarm at Dhule, India www.suzlon.com 1
Disclaimer • This presentation and the accompanying slides (the “ Presentation ”), which have been prepared by Suzlon Energy Limited (the “ Company ”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. • This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. • Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the wind power industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. • No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) . Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not be offered, sold, resold, delivered or distributed, directly or indirectly, into the United States or to, or for the account or benefit of, any U.S. Person (as defined in regulation S under the Securities Act). • The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. www.suzlon.com 2
Contents Suzlon Group: Key highlights • – Volumes & EBIT continues to improve – Starting FY12 with strong order book backed by meteoric rise in order flows in India – Key milestones achieved during FY11 – Turbine availability – consistently above par – SE Forge – on a growth curve Outlook for FY12 and beyond • – Industry estimates suggests 15%+ growth over next five years – India and Offshore to lead growth with 40-50% growth YoY Focus areas for FY12 • Completion of “squeeze - out “process in REpower – Increased focus on India, emerging markets and Offshore – Suzlon Group: Guidance – Detailed financials • www.suzlon.com 3
Contents Suzlon Group - Key highlights : Q4 FY2011 • Suzlon Group: Key highlights – Q4 FY2011 – Volumes continue to grow sequentially and YoY – Strong order book, improving visibility for FY2012 – Robust turbine fleet performance across the globe • Outlook for the FY2012 and beyond – Green shoots visible in the wind industry – Developed and emerging markets: improving regulatory environment – Offshore market: growth momentum continues – India: new emerging revenue models with regulatory policies materializing – Brazil: continues to provide positive momentum – New products: well received by customers • Detailed financials – Q4 FY2011 Suzlon windfarm at Utah, USA www.suzlon.com 4
Financial performance snapshot INR Crs. Full Year Q4 Q4 Full Year FY11 FY10 FY11 Particulars FY10 Unaudited Unaudited Unaudited Unaudited(a) Consolidated revenue 7,276 17,879 6,084 18,133 Consolidated EBITDA 1,024 535 808 703 Consolidated EBIT 773 390 151 220 Net Working Capital 4,872 3,788 Net Debt 9,764 9,142 Performance against Guidance • REpower revenues Euro 1.27bn with EBIT margin of ~5%, in line with the guidance • Suzlon Wind delivered 1,521 MW as against management expectation of 1,700 MW. The shortfall was due to - ~160 MW of deliveries postponed to Q1FY12 (a) Consolidated ex Hansen www.suzlon.com 5
Q4 performance confirms the upward trend Consolidated Revenues (Rs Crs) Consolidated EBITDA (Rs Crs) Consolidated EBIT (Rs Crs) +20% +91% +98% 7,276 1,024 773 6,084 535 390 Q4 FY10 Q4 FY11 Q4 FY10 Q4 FY11 Q4 FY10 Q4 FY11 www.suzlon.com 6
Improvement in performance Evolution of Consolidated EBITDA Margin Evolution of Consolidated PAT (Rs Crs) 14.1% 432 8.8% 14 4.9% 4.1% 3.9% 2.5% -188 -254 0.3% -356 -369 -453 -22.8% -912 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Reduction in other Expenses* (Rs Crs) Key highlights 3,679 3,174 -505 • Tighter cost control 2,450 2,076 -374 • Elimination of one off expenses • Improved predictability FY10 FY11 Consolidated ex Hansen Suzlon Wind www.suzlon.com 7 *- Excluding FX
Group order book Firm Group order book Announced framework contracts Suzlon Group • 300 MW business agreement with Techno Electric Total MW: 4,639 MW : • • 225 MW framework agreement with EUFER • Value: $6.7bn (JV between ENEL Green Energy and Union Fenosa) for Spain Suzlon Wind • RWE Innogy for up to 250 units of 5 MW / 6 MW offshore turbines aggregating to 1,250 – 1,500 MW Total MW: 2,231 MW : • Out of the above, 295 MW of confirmed - India : 1,353 MW - orders for 6M turbines announced in Jan’10 - International : 877 MW • EDF Energies Nouvelles and RES Canada for 954 • Value: Rs. 12,758 Crs MW onshore turbines Out of the above, 300 MW & 80 MW of - REpower confirmed orders announced in Jan’11 and Total MW: 2,409 MW, • Apr’11 respectively • Value: $3.9bn • Up to 720 MW of Frame agreement with Juwi to be commissioned between H2 CY11 and CY14 • Exchange rate: 13 May 2011: 1 EUR= 1.43 USD, 1 USD= 44.86 INR • Orderbook as on 13 th May 2011 www.suzlon.com 8
Order book update – momentum continues Suzlon Group Year End * order book* (MW) Developing trends 4,639 • 1,353 Largest annual Order +60% 2,780 2,882 877 230 75 Intake of 4, 026 MW 896 1,388 (Suzlon Wind 2626 MW) 2,409 1,756 1,317 FY09 End* FY10 End* FY11 End* • Robust Order book, up 60% Suzlon Wind - India Suzlon Wind - International REpower YoY Suzlon Group yearly order intake^ (MW) • Starting FY12 with strong Suzlon Wind REpower 4,026 order visibility +68% 2,402 2,327 2,626 1,122 • 1,234 Strong growth momentum 1,400 in order intake in India & 1,280 1,093 offshore FY09 End* FY10 End* FY11 End* * - Order book as announced at the end of the year www.suzlon.com 9 ^ - Order inflow is net of cancellations, if any, order inflow reflects difference in order book as announced (closing – opening) less sales in FY11
Key milestones achieved in FY11 Key milestones Operational Strategic Financial • Suzlon Group: Largest yearly order “Squeeze - out” Successful issuance of FCCBs • • intake booked in last three years: threshold of 95% of $175mn for strategic 4,026 MW, with Suzlon wind achieved in REpower initiatives accounting for 2,626 MW (largest in and “squeeze - out” last three years) process initiated • Successful Rights Issue of Rs1,188 Crs • New products ( 3XM, S9X ) launched and order inflows growing • Rupee Loan refinancing of Rs10,694 Crs completed Turbine availability rates above 97% • 2 year covenant holiday and - consistently principal moratorium achieved • FCCBs restructuring Consistently improving quarterly • completed performance All covenants removed - www.suzlon.com * - between 31/05/2010 to 13/05/2011 10
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