SUZLONNSE2 November 2023

Suzlon Energy Limited has informed the Exchange about Investor Presentation

Suzlon Energy Limited

2nd November 2023.

National Stock Exchange of India Limited, “Exchange Plaza”, Bandra-Kurla Complex, Bandra (East), Mumbai-400051.

Dear Sirs,

Sub.: Suzlon announces Q2 FY24 Results.

BSE Limited, P.J. Towers, Dalal Street, Mumbai-400001.

In continuation to our letter 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).

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.

Suzlon Energy Limited Investor Presentation Q2, FY24

Thursday, 2nd November 2023

Suvarda Wind Farm, Gujarat, India

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.

INDUSTRY OUTLOOK

SUZLON STRENGTHS

FINANCIAL PERFORMANCE

Suvarda Wind Farm, Gujarat, India

500 GW of non-fossil fuel energy capacity by 2030

50% renewables in the energy mix by 2030

Panchamrit

1 bn tonnes reduction in carbon emissions by 2030

Hydro 52 (12%)

Solar 72 (17%)

45% reduction in emissions intensity of the economy by 2030

Net zero emissions by 2070

Installed Power Generation Capacity Mix (GW)

Fossil Fuel 239 (56%)

Solar, 293 (38%)

Hydro 78 (10%)

Fossil Fuel 277 (35%)

Sep’23 425 GW^

Wind 44 (11%)

Others 18 (4%)

By 2030 777 GW*

Wind 100 (13%)

Other

^CEA All India Installed Capacity as on 30.09.2023 *CEA’s Report On Optimal Generation Capacity Mix for 2029-30 issued in Apr 2023 – Base Case scenario

Share of renewable in the overall power capacity mix to substantially increase by 2030 with both Wind & Solar co-existing

Strong Domestic Demand Outlook

Key Demand Drivers

4th Largest Wind Market in the world

100 GW Installed Wind Energy by 2030

~13 GW Wind Pipeline as on Jun’23

94 GW Wind Infrastructure by 2027

26+ GW Installations in next 5 years through policy corrections

10 GW Exclusive Wind Tenders per annum till 2030

Source: GWEC-India-Outlook-Aug-2023

1. Onshore wind potential: 695 GW (120m HH) and 1,164 GW (150m HH)

2. Discontinuation of E-reverse bidding

3. Wind bids with state specific sub-bids and pooling* of tariff

RPO trajectory: 24.61% (FY23) to 43.33% (FY30) with wind-specific RPO

ISTS charges waiver for 25 yrs. for RE projects COD till 30th June 2025^

Lower Renewable LCOE resulting in strong C&I growth

7. GH2 Mission targets 5 MMT p.a. requiring RE of 125 GW by 2030

Repowering potential estimated by NIWE: ~25.4 GW

9. Offshore potential: India’s first offshore tender expected by Dec’23

10. Potential as export hub for wind components for global markets

*policy for determination of uniform RE tariff announced on 25th Oct’23

^thereafter gradual reduction (refer link below) of waiver by 25% each year till Jun’28

https://powermin.gov.in/sites/default/files/uploads/Orders/B.4.3.pdf

INDUSTRY OUTLOOK

SUZLON STRENGTHS

FINANCIAL PERFORMANCE

Suvarda Wind Farm, Gujarat, India

~20.3 GW* Global installed Wind Energy Capacity

~32% Cumulative Market Share in India

6,000+ Global Workforce

Own WTG Technology & in-house R&D Well established product portfolio

*Includes installed capacity of 14.3 GW in India

As on 30th Sept 2023

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

28 Years Track Record

Strong presence across value chain & customer segments

As on 30th Sept 2023

And many more customers…..

Best-in-class manufacturing capability

Vertically integrated low-cost supply chain

Manufacturing locations across India*

India’s windy states

Other Indian states

Rajasthan

Gujarat

Madhya Pradesh

Maharashtra

Telangana

Nacelle and Hub

Andhra Pradesh

Tamil Nadu

Electric

Blade

Tower

SE Forge

India Manufacturing Capacity ~3,1501 MW

Sufficient & flexible manufacturing capacity to cater to the market

Nacelle and Hub

Blade

Tubular Tower

Generator

Mould

Foundry

Forging

Transformer

*Map not to scale. All data, information and map are provided “as is” without warranty or any representation of accuracy or completeness

Note: 1 SEL has a ramp up/ramp down capacity. Capacity of 3,150 MW is for 2.1 MW WTGs. With 3+ MW WTGs, capacity can be ramped up to 4,500 MW in phased manner

+15% AEP

+43%/49% AEP

Rotor Diameter 111m

Rotor Diameter 120m

Rotor Diameter 144m

Hub Height 120m

Hub Height 140m

Hub Height 140/160m

S111-120 (2.1 MW)

S120-140 (2.1 MW)

S144-140/160 (3.x MW)

Consistent Reduction of Levelised Cost of Energy (LCoE)

Major Updates:

• Encouraging prototype performance • Requisite certifications in place • Enthusiastic customer response as reflected in the

order inflow

• Supply started in line with commercialization plans

Suzlon Wind Farm, Sanganeri, Tirunelveli, Tamil Nadu

Key Numbers

Presence in all windy states in India

14.3 GW+ Installed Base

9,600+ Turbines

USD 10 Bn Assets under management

1,900+ Customers

94 Sites

3,600+ Team

~32% share of all India installed wind capacity

Impact of clean energy:

• Over 3.06 Bn trees absorbing CO2 p.a.

• Over 9.32 Mn households powered p.a.

• Over 36.81 MT of CO2 emissions prevented p.a.

2.3 GW Rajasthan

3.8 GW Gujarat

2.1 GW Maharashtra

1.2 GW Karnataka

0.03 GW Kerala

Installed base as on 30th Sep 2023 of 14.3 GW

0.5 GW Madhya Pradesh

0.3 GW Telangana

1.5 GW Andhra Pradesh

2.6 GW Tamil Nadu

Wind Order Book (in MW)

1,613

1,433

788

652

WTG Model mix

Project segment mix

S144 62%

S133 3%

S120 35%

Captive/C&I/ Retail 64%

Central & State Auctions 36%

Scope mix

State mix

Mar'22

Mar'23

Jun'23

Sep'23

Additionally, 50.4 MW order secured from Juniper in Oct’23

EPC* 53%

Non EPC 47%

GJ 9%

MP 6%

TN 16%

MH 20%

KA 49%

*EPC scope may differ from contract to contract

Healthy order book provides revenue visibility

Vinod Tanti Chairman and Managing Director

Girish Tanti Vice Chairman

JP Chalasani Group CEO

Himanshu Mody Group CFO

Tulsi Tanti Founder, Late Chairman and Managing Director

Ishwar C Mangal CEO Global OMS

Venkat Subramaniam CEO, SEForge

Bernhard Telgmann CTO

Rajendra Mehta Group CHRO

Professional senior management team backing the rich experience of the Board ESOPs granted to eligible employees in order to retain, attract and reward talent

Note: Detailed profile of the management team and the board of directors is available on website/Annual Report

GWEC

Felicitated our Founder and late CMD, Shri Tulsi Tanti as a key contributor to 1 TW of global wind energy installations

The Times Group

Best Construction and Infrastructure Brands - Renewable Energy Suppliers

IWTMA

IRIM

Honouring Shri Tulsi Tanti for contribution to Indian Wind Industry

Nacelle Cover Unit, Daman, won Silver Medal in the India Green Manufacturing Challenge 2023

Rotor Blade Unit, Dhule won Silver Medal in the India Green Manufacturing Challenge 2023

INDUSTRY OUTLOOK

SUZLON STRENGTHS

FINANCIAL PERFORMANCE

Suzlon Wind Farm, Welturi, Maharashtra



Consistent operating performance across all business segments

Higher EBITDA on YoY basis on back of healthier margins

PAT (before FX, exceptional items) for H1FY24 of Rs 237 crores v/s H1FY23 of Rs 29 crores (YoY growth ~8x)

Net cash position of Rs ~599 crores as on Sep’23 vis-à-vis Net debt of Rs ~1,180 crores as on Mar’23

Substantial reduction in quarterly net finance costs by ~61% on YoY basis

CRISIL upgraded Suzlon Energy Limited ratings by two notches to 'BBB+' with a Positive Outlook

Stronger balance sheet and consistent performance positions the Company to meaningfully participate in ongoing energy transition

Revenue

6,520

5,947

2,933

3,295

2,808

2,765

(₹ Cr.)

EBITDA (Pre-Fx)

829

839

539

393

431

FY20

FY21

FY22

FY23

H1FY23^

H1FY24^

-423 FY20

FY21

FY22

FY23

H1FY23^

H1FY24^

Gross Debt

PAT (before exceptional items)

13,137

6,859

6,391

FY20

FY21

FY22

FY23

H1FY24^

Note: Consolidated numbers used | ^H1FY23 and H1FY24 numbers are unaudited

1,905

121

167

230

-249

-705

-2,626 FY20

FY21

FY22

FY23

H1FY23^

H1FY24^

Substantial improvement in financial parameters

Wind capacity additions in India (in GW)

Installations by Suzlon (in GW)

5.6

Introduction of E-reverse auction in Feb’17

Covid impact

E-reverse auction discontinued in Jan’23

32% 1.8

29%

36%

16%

42%

22%

29%

Suzlon Market Share

2.1

1.6

2.2

1.5

1.1

2.3

1.6

0.6

0.4

0.1

0.5

FY17

FY18

FY19

FY20

FY21

FY22

FY23

H1FY24

FY17

FY18

FY19

FY20

FY21

FY22

FY23

H1FY24

Source: Directory Indian Wind Power, 2022 (CECL)

Suzlon has an installed base of 14.3 GW out of total wind installed base of 44.2 GW in India – a cumulative market share of ~32%

Key reasons for lower capacity additions in past

Deliveries & Revenue

GOI’s shift from FIT regime to e-reverse auction system of awarding projects

Unrealistic tariffs discovered leading to unviable & unexecuted projects

Covid impact

Debt restructuring issues of Suzlon during FY21 and consequent restrictions

4,376

3,781

Deliveries (MW) Revenue (Rs Cr.)

2,849

496

595

204

1,193

808

664

1,732

1,679

312

267

FY19

FY20

FY21

FY22

FY23

H1FY23*

H1FY24*

*H1FY23 & H1FY24 numbers are unaudited Note: The revenue numbers are derived from statutory segment reporting

WTG Division well poised to capture the opportunity in wind sector

Revenue & EBITDA trend (Rs. in Cr.)

Installed Capacity Base (GW)

Revenue

EBITDA

EBITDA %

1,436

1,499

1,566

1,668

46.9%

673

45.5%

682

47.3% 741

42.9% 715

44.5%

807

42.9%

858

359

368

1,298

39.2%

509

12.5

12.8

12.9

13.9

14.3

13.4

FY19

FY20

FY21

FY22

FY23

H1FY23*

H1FY24*^

FY19

FY20

FY21

FY22

FY23

H1FY24*

Key Strengths

Machine Availability (%)

1. Over 2 decades of

4. Diversified supplier and vendor

best-in-class OMS practice

network

97.5%

96.6%

96.1%

96.5%

96.4%

95.2%

2. High double-digit margins and stable cashflows

3. Strong customer base

5. Highly experienced management

team

6. Legacy positioning and sizeable presence in all eight windy states

FY19

FY20

FY21

FY22

FY23

H1FY24*

*H1FY23 & H1FY24 numbers are unaudited | ^ represents normalized EBITDA without the impact of one-time costs of Rs 42 Cr on account of cyclone Biparjoy in Gujarat Note 1: The above numbers are for OMS India division only derived from statutory segment reporting. These numbers exclude the overseas OMS business

OMS India Division is a stable and resilient business model

Operating Revenue & EBITDA trend (Rs in Cr.)

Revenue (Rs in Cr.)

Op. Revenue

EBITDA

EBITDA %

16%

477

472

17.8%

334

16.6%

432

11.9%

357

9.9%

239

236

8.8%

6.7%

12.3%

357

299

432 0

432

334

314

16% 477

18% 472

400

386

Suzlon share

Suzlon

Others

15%

239 36

203

32%

236

160

FY19

FY20

FY21

FY22

FY23

H1FY23*

H1FY24*

FY19

FY20

FY21

FY22

FY23

H1FY23*

H1FY24*

Key Strengths

Capacity Utilization (%)

Independently operating business with low breakeven levels

2. Annual manufacturing capacity of 122,000 MT

3. Favorable wind power market conditions

4. Availability of skilled

manpower & working capital

5. Robust & lean manufacturing

systems

6. Lower level of capacity

utilization provides headroom for growth

*H1FY23 & H1FY24 numbers are unaudited | Note: The numbers are derived from statutory segment reporting

18%

19%

16%

22%

23%

FY19

FY20

FY21

FY22

FY23

H1FY24*

Foundry & Forging Division well poised to capture the market opportunity from increasing demand for wind power

Particulars

Net Volumes (MW)

Net Revenue

Contribution

Contribution Margin

Employee Expenses

Other Expenses (net)

EBITDA (Pre FX)

EBITDA Margin (Pre FX)

Depreciation

Net Finance Cost

Taxes

Net Profit/(Loss) (Pre Fx and Ex. Items)

Exchange Loss / (Gain)

Exceptional Loss / (Gain)

Net Profit After Tax

Q2 FY24

Q1 FY24

Q2 FY23

H1 FY24

H1 FY23

Unaudited

(₹ Cr.)

FY23

Audited

664

5,947

1,965

33.0%

609

517

839

162

1,430

511

35.7%

153

149

208

267

2,765

1,052

38.1%

344

277

431

312

2,808

947

33.7%

295

258

393

14.5%

15.6%

14.0%

14.1%

(42)

106

237

203

122

240

260

401

174

(2,469)

2,489

(2,721)

2,887

132

1,417

546

38.5%

183

139

224

15.8%

136

-1

102

135

1,348

506

37.5%

161

138

207

z 15.4%

101

(8)

101

Particulars

Equity & Liabilities

Net Worth

Non-controlling interests

Borrowings (non-current and current)

Non-current Liabilities

Current Liabilities

Total equity and liabilities

Assets

Non-current Assets

Inventories

Trade Receivables

Other current assets

Cash and cash equivalents

Total assets

Net Debt

Sep-23

Unaudited

Mar-23

Audited

Mar-22

Audited

(₹ Cr.)

3,409

121

199

2,204

5,931

966

1,944

1,487

815

719

5,931

(599)

1,099

1,905

206

2,313

5,523

988

1,827

1,170

813

725

5,523

1,180

(3,526)

(36)

6,391

210

3,436

6,475

1,295

2,208

1,377

1,000

595

6,475

5,796

AEP – Annual Energy Production

BOP – Balance of Plant

BESS – Battery Energy Storage System

C&I – Commercial and Industrial

CEA - Central Electricity Authority

COD – Commercial Operations Date

17.

LCoE – Levelized Cost of Energy

18. MNRE – Ministry of New And Renewable Energy

19. MT – Metric Ton

20. MW – Megawatt

21. NIWE – National Institute of Wind Energy

22. OEM - Original Equipment Manufacturer

EBITDA – Earnings before Interest, Tax, Depreciation and Amortizations

23. OMS – Operations and Maintenance Services

GoI – Government of India

GH2 – Green Hydrogen

10. GW – Gigawatt

11. GWEC – Global Wind Energy Council

12. HH – Hub Height

24. PLF – Plant Load Factor

25. PSA – Power Sale Agreement

26. RE – Renewable Energy

27. RGO -- Renewable Generation Obligation

28. RPO – Renewable Purchase Obligation

13.

IRIM – International Research Institute for Manufacturing

29. RTC – Round The Clock

14.

ISTS – Inter-State Transmission System

30. SCoD – Scheduled Commissioning Date

15.

IWTMA – Indian Wind Turbine Manufacturers Association

31. WTG – Wind Turbine Generator

16. KPI – Key Performance Indicators

32. Y-o-Y – Year on Year

https://www.seci.co.in/

https://cea.nic.in/

https://mnre.gov.in/

https://niwe.res.in/

https://powermin.gov.in/

https://www.mercomindia.com/

http://www.cercind.gov.in/

https://gwec.net/globalwindreport2023/

https://gwec.net/india-wind-energy-market-outlook-2023-2027-report/

https://www.crisil.com/en/home/sectors-we-cover/energy.html

Email contact for queries: investorrelations@suzlon.com

Thank You!

Suzlon Wind Farm, Weltur, Maharashtra

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