Transmission Adani Transmission Limited DEBT PRESENTATION J P M O R G A N D E B T C O N F E R E N C E , F E B R U R AY, 2 0 2 0 M I A M I
CONTENTS ATL – Profjle and Capital Adani Group 04-07 15-21 Management Program ATL: Largest Private T&D Company ADANI: World class infrastructure ATL ’s Capital Management Program in India 15 & utility portfolio 04 brings diversity and elongated maturity to fjrm’s debt profjle 20 AEML at a Glance 16 ADANI: Repeatable, robust & proven model to deliver RoE 05 ATL ’s: Reduced Development Global Benchmarking: Adani Utility and Capex risk with High Credit Portfolio vs. Global Utility peers 17 ADANI: Repeatable, robust Discipline and no Equity Dilution 21 business model applied consistently to drive value 06 Global Benchmarking: Regulatory Framework 18 ADANI: world-class credit portfolio attracting global ATL: Emulating Group’s Core investors 07 Infra Philosophy 19 Annexure ESG 09-13 23-29 ATL: Integrated ESG framework for enhanced value creation 09 ATL: Capital Management Program ATL ’s Evolution and Operational ATL: Key ESG Metrics and Demonstrating Global Excellence 23 Portfolio 28 Initiatives 10 ATL OG - Profjt and Loss Summary 24 ATL: Locked-in Growth from Under- ATL: Environment awareness and construction TBCB Projects 29 initiatives 11 ATL OG - Balance Sheet 25 AEML: Initiatives towards ATL 9M FY20: Recent Operational reduction of carbon footprint 12 and Financial Highlights 26 ATL: Governance – Journey so far Credit Rating 27 and future glide path 13
Transmission Adani Group
Adani Transmission Limited Debt Presentation | February 2020 Transmission Adani : World class infrastructure & utility portfolio Adani Transport & Logistics Portfolio Energy & Utility Portfolio Adani Philosophical shift from B2B 62.5% 100% 75% 75% to B2C businesses – APSEZ SRCPL ATL AGEL AGL – Gas distribution Port & Logistics Rail T&D Renewables network to serve key 100% 75% 75% geographies across India AAPT APL AGL AEML – Electricity 75% Abbot Point IPP Gas DisCom distribution network AEL that powers the fjnancial capital of India Incubator Adani Airports – To operate, manage and 100% 100% 100% 100% develop six airports in the country AAHL ATrL AWL Data Airports Roads Water Centre Locked in Growth 2020 – Transport & Logistics - ~USD 28.1bn* Airports and Roads Energy & Utility – Water and Data Centre • Orange colour represent public traded listed vertical | Percentages denote promoter holding • * As on Dec 31, 2019, USD/INR = 71.36 04
Adani Transmission Limited Debt Presentation | February 2020 Transmission Adani : Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence planning structure of the asset Concessions Sourcing & quality Viability analysis Asset Management Operational phase and regulatory levels Activity agreements plan funding consistent with Strategic value Equity & debt asset life Investment case funding at project development Redefjning the Envisaging evolution Complex O&M optimisations APSEZ, ATL, AGEL & AEML- only Private sector space e.g. Mundra of sector e.g. Adani developments on e.g. Solar plants Infrastructure IG issuers in Port Transmission time & budget e.g. India APL Successfully placed 7 Performance issuances totalling ~USD 4Bn in FY20 Low capital cost, time bound & quality completion providing long term stable cashflow & enhanced RoE 05
Adani Transmission Limited Debt Presentation | February 2020 Transmission Adani : Repeatable, robust business model applied consistently to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Commercial Port Line in Asia Solar Power Plant Private Thermal IPP (at Mundra) (Mundra – Dehgam) (at Kamuthi, Tamil Nadu) (at Mundra) Key APSEZ ATL AGEL APL Business Excellence in O&M – Highest Margin Highest availability Constructed and High Availability benchmarked to global Model Commissioned 9 among Peers in the among Peers Built availability of standards months World EBITDA margin: 91% 1,3 89% ,5 Attributes EBITDA margin: 90% 1,4 EBITDA margin: 65% 1,2 Diverse fjnancing Private Banks 31% sources – only Bonds 31% Indian infrastructure portfolio with four (4) PSU 38% PSU 55% Investment Grade (IG) Private Banks 31% issuers March 2016 September 2019 Bonds 14% Note: 1 Data for FY19; 2 Excludes forex gains/losses; 3 EBITDA = PBT + Depreciation + Net Finance Costs – Other Income; 4 EBITDA Margin represents EBITDA earned from power sales and exclude other items; 5 H1 FY20 Data; Include listed Group companies 06
Adani Transmission Limited Debt Presentation | February 2020 Transmission Adani : World-class Credit Portfolio Attracting Global Investors Energy & Utility Portfolio Company Issue date Issue Size (USD Mn.) Coupon Price Current Yield** Average Maturity DTD Debt structure Ratings Transmission & Distribution AEML Jan,20 1000 3.95% 102.71 3.77% 10 10 Bullet BBB- (Fitch) / Baa3 (Moody’s) ATL-USPP Mar,20* 310 5.20% - - 16.35 30 Amortizing BBB- (Fitch) / Baa2 (Moody’s) ATL – Obligor 1 Nov,19 500 4.25% 103.76 3.83% 10 16.5 Amortizing BBB- (S&P, Fitch) / Baa3 (Moody’s) ATL – Obligor 2 Aug,16 500 4.00% 104.53 3.25% 10 10 Bullet BBB- (S&P, Fitch) / Baa3 (Moody’s) Renewable Oct,19 362.5 4.625 103.83 4.21% 13.5 20 Amortizing BBB- (S&P, Fitch) / Baa3 (Moody’s) AGEL June,19 500 6.25% 109.41 4.12% 5.5 5.5 Bullet BB+ (S&P, Fitch) Transport & Logistics Portfolio Company Issue date Issue Size (USD Mn.) Coupon Price Current Yield** Average Maturity DTD Debt structure Ratings Jul,19 650 3.38% 102.22 2.87% 5 5 Bullet BBB- (S&P, Fitch) / Baa3 (Moody’s) June,19 750 4.38% 106.13 3.68% 10 10 Bullet BBB- (S&P, Fitch) / Baa3 (Moody’s) APSEZ June,17 500 4.00% 103.93 3.44% 10 10 Bullet BBB- (S&P, Fitch) / Baa3 (Moody’s) Jan,17 500 3.95% 102.61 2.54% 5 5 Bullet BBB- (S&P, Fitch) / Baa3 (Moody’s) Successfully raised ~USD 4 Bn in last one year and ~USD 6.2 bn in total The Group now offers bonds in entire yield curve (tenor ranging from 5 years to 30 years) All bonds are trading in the money Note: *To be issued on 11th Match, 2020; **As on 12th February, 2020 07
Adani Transmission Limited Debt Presentation | February 2020 Transmission Transmission ESG 08
Adani Transmission Limited Debt Presentation | February 2020 Transmission ATL : Integrated ESG Framework for enhanced value creation Technological advancement for minimal downtime during TARGET BY SEP 2021 maintenance better availability increased EBITDA Renewable Power Procurement at below APPC tariff reduction for 12 mn Mumbai consumers 12x growth in renewable The power procurement Environmental (from 3% of total power integrated Reduction in pollution by fly ash utilization (~100% in FY19) mix to 30%) ESG framework Better vendor management development of local workforce to meet best industry practices has resulted Strong focus on social in access to uplift and safety through 100% supply reliability for 12 mn Mumbai consumers various community larger pool consumers shifting to ATL ’s distribution business programs and safety of capital initiatives Social at reduced 24 x 7 consumer care availability better responsiveness lesser consumer attrition stable cash flows cost >> Bankruptcy remote value Bankruptcy Remote Structure structure to be accretive implemented for all SPVs Board Independence returns RPT policy applicable to Related party transactions (RPT) as per covenanted structure all subsidiaries All the above factors led to the highest international rating Independent directors at issuer in the transmission sector in India leading to lower cost Governance all subsidiaries’ board and and larger pool of capital committees 09
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