Suzlon Energy Limited has informed the Exchange about Investor Presentation
10th November 2022.
National Stock Exchange of India Limited, “Exchange Plaza”, Bandra-Kurla Complex, Bandra (East), Mumbai-400051.
Dear Sirs,
Sub.: Suzlon announces Q2 FY23 Results.
BSE Limited, P.J. Towers, Dalal Street, Mumbai-400001.
In continuation to our letters of even date, enclosed please find the copy of the presentation in the subject matter, which is also available on the website of the Company (www.suzlon.com).
Further, in continuation to our communication dated 9th November 2022 intimating about the conference call, following are the dial-in details:
Universal Access: +91 22 6280 1144 / +91 22 7115 8045
Toll Free Numbers: Singapore 8001012045 Hong Kong 800964448 UK 08081011573 USA 18667462133
Toll Numbers: Singapore +65 31575746 Hong Kong +852 30186877 UK +44 2034785524 USA +1 3233868721
This is for your information as also for the information of your members and the public at large.
Thanking you,
Yours faithfully, For Suzlon Energy Limited
Geetanjali S.Vaidya, Company Secretary.
Encl.: As above.
is pleased to invite you to the
Q2FY23 Results Conference Call
of Suzlon Energy Limited
Represented by
\
Mr. Ashwani Kumar, Chief Executive Officer
Mr. Himanshu Mody, Chief Financial Officer
on
Friday, November 11, 2022 at 09:00 hrs India Time
Universal Access: +91 22 6280 1144 / +91 22 7115 8045
Toll Free Numbers:
Singapore Hong Kong
8001012045
800964448
UK USA
08081011573 18667462133
Toll Numbers:
Singapore Hong Kong
UK
USA
+65 31575746 +852 30186877 +44 2034785524 +1 3233868721
Diamond Pass registration link: Copy this URL in your browser: Link
Mr. Rahul Modi: Phone: +91 77380 96775; Email: rahul.modi@icicisecurities.com Mr. Anshuman Ashit: Phone: +91 84518 30601, e-mail: anshuman.ashit@icicisecurities.com
Call Coordinators
For any clarification, please contact:
Ms. Divya Purohit: Phone: +91 22 6807 7454, e-mail: divya.purohit@icicisecurities.com
Mr. Rushad Kapadia: Phone: +91 22 6807 7334, e-mail: rushad.Kapadia@icicisecurities.com
Ms. Seema Sehgal: Phone: +91 11 4221 8511, e-mail: seema.sehgal@icicisecurities.com
Suzlon Energy Limited Investor Presentation Q2, FY 2022-23
10th November 2022
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 DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. 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, reliability or fairness 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. In particular, but without prejudice to the generality of the foregoing, no representation or warranty whatsoever is given in relation to the reasonableness or achievability of any projections contained in the Presentation or in relation to the bases and assumptions underlying such projections and you must satisfy yourself in relation to the reasonableness, achievability and accuracy thereof.
• 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, 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 responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.
• 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. Any failure to comply with these restrictions may constitute a violation of the laws of such jurisdiction.
2
Industry Outlook
Suzlon Strengths
Financial Performance
Detailed Financials
3
Renewable Energy growth to be driven by Wind & Solar
500 GW of non-fossil fuels energy capacity by 2030
Panchamrit
1 bn tonnes reduction in carbon emissions by 2030
50% renewables in the energy mix by 2030
45% reduction in emissions intensity of the economy by 2030
Net zero by 2070
Source: Central Electricity Authority
Opportunities: Favorable Market Conditions
✓ India’s Renewable Energy target of 500 GW by 2030 out of which 140 GW is Wind.
✓ MNRE has in-principle agreed to discontinue E-reverse auctions for wind power projects
✓ MNRE’s draft policy estimates a Wind re-powering potential of 25.4 GW
✓ New demand from large industries/hard to abate sectors, green fuel producers and e-mobility
✓ Auction activity gaining momentum with high focus on Hybrid and RTC
✓ Global wind installation for 2021 at 103 GW shows resilience of wind technology
✓ Strong visibility for market size expansion for both wind & renewable sector
Suzlon well positioned to capture the market opportunity
5
Renewable Energy growth to be driven by Wind & Solar
Target Wind Capacity for 2030 to result in huge market expansion (capacity numbers in GW)
817
140
280
61
292
44
2030
Wind
Solar
Hydro
399 40 54 47
Thermal
236
Others
22
2022
Drivers for volume growth
GoI Targets till FY 2030: • 500 GW Renewable Capacities • Green Hydrogen Policy targeting production of 5 MT p.a. • Power supplied to grid from Renewables to reach 40% • Positive impact on policy support and bidding activity
New Business segments:
• Increase of coal price and currency volatility – Large industries
are investing heavily in renewable
• New demand is emerging in big way for Green Fuel Production • C&I segment is gaining strong momentum (Wind is critical for
high PLF projects)
Enablers for Wind Energy growth: • Future is of hybrid projects, as most of the customers and utilities prefer higher PLF and scheduled power, reduces LCoE. • Wind Repowering: ~25.4 GW existing capacities would need
repowering as per draft policy from MNRE
• Wind generation profile and high PLF makes wind energy competitive as compared to solar and hence suitable for RE RTC
6
Strong volume visibility in medium and long-term
Source: Central Electricity Authority
Industry Outlook
Suzlon Strengths
Financial Performance
Detailed Financials
7
Suzlon Strengths
19.5 GW Installed Wind Energy Capacity
17 Countries Presence
5,500+ Global Workforce
~33% Cumulative Market Share in India
As on 30th Sept’22
8
Suzlon’s Strengths in Indian Wind Energy Market
No.1 OEM in India’s Renewable Sector
End-to-end Service Provider
Best-in-class Service Capabilities
Pan India Presence
Technology Leadership
Strong Customer Relationship
27 Years Track Record
Strong presence across value chain & customer segments
9
Suzlon’s Global Presence (19.5 GW)
2
North America 2.78 GW
2
3
3
South America 0.81 GW
1
4
5
6
5
1
Asia 14.50 GW
Europe 0.51 GW
4
Australia 0.76 GW
South Africa 0.14 GW
6
Suzlon’s strong relationships across regions positions it well
10
Installed turbines as on 30st Sept 2022
Key clientele among marquee customers globally
11
Geographically diversified manufacturing base
Best-in-class manufacturing capability
Vertically integrated low cost supply chain
20+ manufacturing locations across India
Sufficient & flexible manufacturing capacity to cater the market
India Manufacturing Capacity ~3,1501 MW
Nacelle and Hub
Transformer
Rotor blade
Mould
Foundry
Rajasthan
Madhya Pradesh
Maharashtra
Gujarat
Karnataka
Andhra Pradesh
Nacelle and Hub
Electric
Blade
Tower
SE Forge
India’s windy states
Tamil Nadu
Other Indian states
Forging
Tubular tower
Generator
Efficiently Supports India Market with Easy Export for Asia Markets
Map not to scale. All data, information, and map is provided “as is” without warranty or any representation of accuracy, timeliness or completeness Note: 1 SEL has a ramp up/ramp down capacity. Capacity of 3150 MW is for 2.1 MW WTGs. When Suzlon manufactures 3+ MW WTGs, capacity can be ramped up to 4500 MW in phased manner
13
Product Optimised for Higher Energy Output
+15% AEP
+45% AEP
Rotor Diameter 111m
Rotor Diameter 120m
Rotor Diameter 144m
Hub Height 120m
Hub Height 140m
Hub Height 160m
S111-120 (2.1 MW)
S120-140 (2.1 MW)
S144-160 (3.x MW)
Consistent Reduction of Levelised Cost of Energy (LCoE)
14
Overview of asset management capabilities
Overview of Global OMS
Presence in all windy states in India
3,300+
16.1* GW+ / 13 Countries
1,900+
USD 12 Bn
194 Sites
10,500+
•
•
~33% - All India installed wind capacity
Impact of clean energy: = ~ 4.18 Bn trees absorbing CO2 per year =~ 12.72 Mn households powered p.a. = ~ 50.23 Mn tonnes of CO2 emissions prevented p.a.
*include WTGs under Technical Service Agreements (TSA) for Spares and Repairs
15
2.2 GW
3.3 GW
0.5 GW
2.1 GW
1.2 GW
1.8 GW
0.03 GW
2.6 GW
Wind Order Book
Particulars
Central Auctions
State Auctions
Captive/Retail/PSUs
Wind Firm Order Book as on Sept 30, 2022
Orders announced post Q2
Capacity (MW)
417.9
56.7
284.6
759.2
193.2
Strong order pipeline under advanced discussion
12
Industry Outlook
Suzlon Strengths
Financial Performance
Detailed Financials
16
Transformation over 30 months…
Volume (in MW)
808
Revenue (Rs Crs)
6,520
204
59
271
312
2,933
3,295
2,482
2,808
FY20
FY21
FY22
H1FY22
H1FY23
FY20
FY21
FY22
H1FY22
H1FY23
EBITDA (Rs Crs)
Net Debt (Rs Crs)
828
539
392
393
13,003
FY20
FY21
FY22
H1FY22
H1FY23
-423
17
6,373
5,796
2,723
2,139
FY20
FY21
FY22
H1FY23
Post RI*
*proforma net debt post repayment from Rights issue proceeds
Highlights of Financial Performance
✓ Highest Q2 revenue since FY19 with strong volume growth
✓ Improvement in EBITDA – Q2 FY23 EBITDA up by 8% on Y-o-Y basis
✓ Part of commodity price impact passed on to customer to minimize margin pressure
✓ Maintained strong control over fixed costs despite of inflationary trends
✓ Healthy traction in order pipeline in addition to a sizable order backlog
✓ Net worth significantly improved as compared to March 2022
✓ Significant reduction in finance costs in Q2FY23 on YoY basis
✓ Healthy balance sheet with reduced debt post rights issue
18
Q2 FY23 Consolidated Financial Metrics
Particulars
Net Volumes (MW)
Net Revenue
Contribution
Contribution Margin
Employee Expenses
Other Expenses (net)
EBITDA (Pre FX)
(₹ Cr.)
Q2 FY23
Q2 FY22
Unaudited
Unaudited
162
1,430
511
35.7%
153
149
208
155
1,347
472
35.1%
152
128
192
EBITDA Margin (Pre FX)
14.5%
14.3%
Depreciation
Net Finance Cost
Taxes
Net Profit (Pre Fx and Ex. Items)
Exchange Loss / (Gain)
Exceptional Loss / (Gain)
Net Profit After Tax
63
92
-42
95
38
0
56
61
184
0
-54
-41
0
-13
✓ Improvement on all KPIs on Y-o-Y
basis
✓ Maintaining healthy margins despite
of rising commodity prices
✓ Good control on employee expenses
in Q2 FY23
✓ Refinancing completed in May 2022, leading to significant reduction in finance cost
19
Robust financial performance in Q2 FY23 on all parameters
Consolidated Balance Sheet Metrics (as on 30th Sept 2022)
Particulars
Sep-22*
Mar-22^
(₹ Cr.)
Equity & Liabilities
Shareholders’ Fund
Borrowings (non-current and current)
Non-current Liabilities
Current Liabilities
Total equity and liabilities
Assets
Non-current Assets
Inventories and Trade Receivables
Other current assets
Cash and cash equivalents
Total assets
Net Debt
-354
3,150
207
2,890
5,893
1,127
3,343
996
427
5,893
2,723
-3,562
6,391
210
3,436
6,475
1,295
3,585
1,000
595
6,475
5,796
✓ Significant
improvement
net to conversion of
in
worth pursuant financial instruments
✓ Net debt reduced by nearly 50% pursuant to conversion of financial instruments
✓ Further reduction of debt by Rs issue
583.50 crore from rights proceeds
✓ Group corporate structure is being increase
simplified, which will transparency
20
Significantly healthier balance sheet post refinancing
*unaudited | ^audited
Industry Outlook
Suzlon Strengths
Financial Performance
Detailed Financials
21
Consolidated Income Statement
Particulars
Net Volumes (MW)
Net Revenue
Contribution
Contribution Margin
Employee Expenses
Other Expenses (net)
EBITDA (Pre FX)
(₹ Cr.)
Q2 FY23
Q1 FY23
Q2 FY22
H1 FY23
H1 FY22
FY22
Unaudited Unaudited Unaudited Unaudited Unaudited
Audited
162
1,430
511
151
1,378
436
155
1,347
472
312
2,808
947
271
2,482
909
808
6520
1877
35.7%
31.7%
35.1%
33.7%
36.6%
28.8%
153
149
208
142
109
185
152
128
192
295
258
393
273
243
392
545
503
829
EBITDA Margin (Pre FX)
14.5%
13.4%
14.3%
14.0%
15.8%
12.7%
Depreciation
Net Finance Cost
Taxes
Net Profit (Pre Fx and Ex. Items)
Exchange Loss / (Gain)
Exceptional Loss / (Gain)
Net Profit After Tax
63
92
-42
95
38
0
56
59
148
44
-66
-29
-2,469
2,433
61
184
0
-54
-41
0
-13
122
240
2
29
9
-2,469
2,489
119
359
2
-88
5
-83
-10
260
712
167
-310
-61
-83
-166
22
Consolidated Balance Sheet
Liabilities
Shareholders' Fund Non controlling interest
Non-Current Liabilities (a) Financial Liabilities (i) Borrowings (ii) Lease Liabilities (iii) Other Financial Liabilities (b) Provisions (c) Other Non-Current Liabilities
Current Liabilities (a) Financial Liabilities (i) Borrowings (ii) Trade payables (iii) Lease liabilities (iv) Other financial liabilities Contract Liabilities Other cur. Liabilities Provisions Current Tax Liabilities (net)
Sept-22 -313 -41 -354
Mar-22 -3,526 -36 -3,562
2,635 39 20 148 0 2,842
5,592 58 22 130 0 5,802
Assets Non Current Assets Property, plant and equipment Right-of-use assets Capital work-in-progress Investment property Goodwill Other intangible assets Intangible assets under development Investments in asso. and joint ventures Financial assets
Other Investment Trade receivables Loans Other financial assets
Deferred Tax Assets Other non-current assets
514 12 1,517 319 439 53 549 2 3,405
798 17 1,840 363 477 81 484 174 4,234
Current Assets (a)Inventories (b) Financial assets (i) Trade receivables (ii) Cash and cash equivalents (iii) Bank Balances other than above (iv) Loans (v) Other Financial Assets (c) Current tax asset, net (d) Other curr. assets (incl. held for sale)
(₹ Cr.)
Sept-22
Mar-22
740 111 32 30 0 78 13 0
0 0 0 331 0 44 1,379
774 134 15 31 0 121 4 0
0 0 0 264 17 29 1,390
2,181
2,208
1,163 175 0 1 212 1 782 4,514
1,377 437 63 1 121 1 877 5,085
Total Equity and Liabilities
5,893
6,475
Total Assets
5,893
6,475
23
Glossary
1. MW – Megawatt
2. GW – Gigawatt
11. MNRE – Ministry of Renewable Energy
12. RE – Renewable Energy
3.
4.
5.
6.
7.
Y-o-Y – Year on Year
13. SCoD – Scheduled Commissioning Date
EBITDA – Earnings before Interest Depreciation Tax and Amortizations
KPI – Key Performance Indicators
PSU – Public Sector Undertaking
RTC – Round The Clock
14. OEM – Original Equipment Manufacturer
15. WTG – Wind Turbine Generator
16. LCoE – Levelised Cost of Energy
17. OMS – Operations and Maintenance Services
8. GoI – Government of India
9.
C&I – Commercial and Industrial
10. PLF – Plant Load Factor
24
Thank You!
25
Email contact for queries: investorrelations@suzlon.com