#1Suzlon Energy Limited Investor Presentation Q2, FY 2020-21 SUZLON POWERING A GREENER TOMORROW BELON#22 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. SUZLON POWERING A GREENER TOMORROW#3Milestones Achieved Cumulative Market Share* ~34% Market leadership maintained for over two decades Largest fleet under maintenance* of 12.8 GW in India 3rd largest O&M Company in India Power Sector H1, FY21 EBITDA Margin of ~16% Due to high control on fixed costs Out of 2.95 GW commissioning done under SECI and State Bids, ~19% is done by Suzlon - 2nd highest in India 3 Suzlon is on track to regain its foothold in FY21 despite Covid-19 challenge *as on 31st Mar 2020 SUZLON POWERING A GREENER TOMORROW#44 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#55 Q2 FY21 Financial Metrics Particulars Net Volume (MW) Net Revenue Gross Profit Q2 FY21 Unaudited Q2 FY20 Unaudited (* Cr.) Remarks 27 27 725 803 390 133 Primarily due to higher provisions in Q2 FY20 Gross Margin 53.8% 16.6% Employee Expenses 141 209 Other Expenses (net) 114 167 Includes partly variable cost Exchange Loss/ (Gain) 23 123 EBITDA 112 -366 EBITDA Margin 15.4% Depreciation 69 -45.6% 76 Impact of higher margins and optimization of manpower and opex cost Net Finance Cost 192 292 Partly non-cash in nature on account of fair valuation of OCDs and CCPSS issued to the lenders Taxes 2 -0 Share of (Profit) / Loss of Associates / JV -5 0 Net Profit (Pre Exceptional Items) -147 -734 Exceptional Loss / (Gain) (822) 44 Net Profit (Post Exceptional Items) 675 -778 Non Controlling Interest Net Profit attributable to Shareholders -1 -31 676 -747 Financial performance impacted due to low volumes SUZLON POWERING A GREENER TOMORROW#66 H1 FY21 Financial Metrics Particulars Net Volumes (MW) Net Revenue Gross Profit H1 FY21 Unaudited H1 FY20 Unaudited (* Cr.) Remarks 25 47 1,237 1,636 746 Gross Margin 60.3% 570 34.8% Employee Expenses 300 417 Other Expenses (net) 194 334 Primarily due to low volume in WTG and components business due to Covid-19 Due to change in revenue mix and higher provisions in Q2 FY20 Includes partly variable cost Exchange Loss/ (Gain) 49 143 EBITDA 203 -324 EBITDA Margin 16.4% -19.8% Impact of higher margins and optimization of manpower and opex cost Depreciation 140 149 Net Finance Cost 595 587 Predominantly non-cash in nature Taxes 3 1 Share of (Profit) / Loss of Associates / JV -4 0 Net Profit (Pre Ex. Items) -531 -1,061 Exceptional Loss/ (Gain) (807) 52 Net Profit (Post Ex. Items) 276 -1,115 Non Controlling Interest Net Profit attributable to Shareholders -2 -33 278 -1,082 Financial performance impacted due to low volumes SUZLON POWERING A GREENER TOMORROW#7Wind Order Book (as at 30th Sep, 2020) Particulars Capacity Remarks Central Auctions 764 MW All orders backed by signed PPA's State Auctions/PSU 65 MW Captive/Retail Wind Firm Order Book Value of Order Book 70 MW 899 MW * 4,702 Cr. + SEFL and Service orders over and above this order book 7 Sizable auctioned capacity is yet to be tied up by bidders SUZLON POWERING A GREENER TOMORROW#88 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#99 Tariffs are firming up since early Wind Project auctions in India 3.47 3.42 2.65 2.43 2.44. 2.85 Wind Auction Tariffs (Rs/Unit) Tariff cap removed for future auctions 2.991 2.9 2.82 2.84 2.77 2.76 2.8 2.79 2.67 2.69 2.51 SECI 1 TN Bid SECI 2 GJ Bid SECI 3 MH Bid SECI 4 NTPC SECI 5 HB1 SECI 6 GJ-2 SECI 7 HB2 SECI 8 RTC 1 SECI 9 Positive Aspect of Competitive Bidding 1 2 Pan India Demand Market Based pricing 3 Predictable Volumes Large Scale Orders Wind + Non Wind States Most competitive source of power-even better than Coal based Optimized Working Capital 250-300 MW plants India following global trends of auction regime 5 Reduced Regulatory Risk Upfront PPA signing and tariff determination SUZLON POWERING A GREENER TOMORROW#1010 Industry Updates ✓ RTC Tender concluded by SECI for 400 MW Round-The-Clock Power supply at first year tariff of INR 2.90 p.u. with 3% escalation p.a. for next 15 years ✓ Ministry of Power and MNRE provides five months Extension for under-construction Transmission Projects for RE Projects due to COVID19 Rajasthan Electricity Regulator issued RERC Tariff Regulations, 2020, which will allow project specific tariff for 25 MW projects < ✓ Share of wind/solar in hybrid project increased from 25% to 33% in the new policy ✓ Gas based projects are also allowed for RTC projects SUZLON POWERING A GREENER TOMORROW#1111 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#12Products Optimized for Market Demand S111-140 2.1 MW S120-140 2.1 MW Proto Commissioned Aug'17 Proto Status I S111-140 ~5-6% Higher Energy Yield S111-120 S120-105 S133-140 3.0 MW (product series) Date Proto Status Date S133-105 Commissioned Aug '19 Commissioned Jun '18 S120-140 Commissioned Dec'18 S111 S120 ~6-7% Higher Energy Yield 12 Gaining competitive edge in auction regime - Leverage Cost out & AEP S120 S133 ~23-25% Higher Energy Yield SUZLON POWERING A GREENER TOMORROW#1313 Product Development S133: New Product S133-105 SB 63 - Won SKOCH award for Corporate Excellence SUZLON ✓ RLMM Listing completed All Testing & Measurement completed ✓ Multiple Tower Options (Hybrid Lattice, Steel Tubular) Enables us to reach untapped wind sites in challenging terrains SUZLON POWERING A GREENER TOMORROW#1414 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#15Suzlon's Strengths in Indian Wind Market Full Turnkey Solution Provider Pan India Presence 1 SUZLON Technology Leadership Strong Customer Relationship POWERING A GREENER TOMORROW Best In Class Service Capabilities 25 Years Track Record 15 End-to-end service provider with strong presence across value chain & customer segments SUZLON POWERING A GREENER TOMORROW#1616 Accolades Great Place To WorkⓇ Certified APR 2019-MAR 2020 INDIA DNV-GL CH DNV GL issues world's first solar plant project certificate to CLP's Veltoor Solar Power Project in India SKOCH AWARD CORPORATE EXCELLENCE SILVER SUZLON ENERGY LIMITED FOR 5863-FULL CARBON GIRDER BLADE FOR INDIA'S LARGEST WIND TURBINE CH Certificate for Winner CH CHANN Competion 2017 rtificate for ener №2 ELE $2 ELW • Suzlon has won the prestigious CII-ITC Sustainability Award 2019 for CSR • • • • . • • Won the prestigious award 'Company of the Year: IT & Data Analytics (Wind)' as part of Renewable Energy Digital Week India Awards 2020 World's 1st solar project quality certification for Suzlon's 100 MW project . DNV GL confirms safety features and technical compliance Coimbatore Generator Unit wins CII Southern Region 13th Kaizen Competition For uniform profile of copper bar with higher productivity Suzlon's Generator Unit wins award at Manufacturing Today Summit . Quality Improvement Project competition won on Cost Optimization Evaluated across cost optimization, quality, tech., safety and sustainability SKOCH Corporate Excellence Silver Award SB63 Full Carbon Girder Blade, Order of Merit certificate for S128 Award for Innovative two fold transport system Team Wins IMC RBNQA 2018: Symbol Of Business Excellence 1st prize for SGSL in service category, recognition of high service standards ICERP - JEC Innovation Award as "Outstanding Innovation in Composites" Awarded by FRP Institute, India and JEC Composites, France Testament of Suzlon's innovation in nacelle cover composites structure Won Best Organisation for POSH (Prevention of Sexual Harrasment) award • Certified as 'Great Place to Work' by the Great Place to Work® Institute • Daman unit won Gold award by International Research Institute for Manufacturing Testament to our focus on quality and technology SUZLON POWERING A GREENER TOMORROW#1712.8 GW Wind Energy Installations In India Ranked No. 1 in Renewables Sector 2.0 GW 2.9 GW 0.4 GW • 2.1 GW 0.1 GW 1.1 1.6 GW GW 2.5 GWS As on 31st Mar 2020 Fleet under Operation and Maintenance fold in India (31st Mar❜20) # of Turbines MW <= 1 MW 1,678 777 >1 MW <2 MW 4,268 5,774 =>2 MW 2,997 6,296 Total 8,943 12,847 • - 34% All India installed wind capacity • • ~15% - All India installed renewable capacity ~1,800 customer relationships 25 years of operating track record 28 TWh estimated of annual clean energy; =2,291 mn trees planting p.a. =~20.8 mn tonnes coal avoidance p.a. =~27.4 mn tonnes CO2 emission savings p.a. 17 3rd largest O&M Company in India Power Sector SUZLON POWERING A GREENER TOMORROW Map not to scale. All data, information, and map is provided "as is" without warranty or any representation of accuracy, timeliness or completeness.#1818 Suzlon's Global Presence (18.8 GW) 2 5 2 1 North America 2.78 GW 3 6 3 5 South America 0.81 GW Europe 0.51 GW South Africa 0.14 FGW 6 4 Australia 0.76 GW As on 31st Mar 2020 Asia 13.80 GW 1 Suzlon's strong relationships across regions positions it well SUZLON POWERING A GREENER TOMORROW Map not to scale. All data, information, and map is provided "as is" without warranty or any representation of accuracy, timeliness or completeness.#1919 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#2020 Consolidated Income Statement (Cr.) Particulars Revenue from operations Less: COGS Q2 FY21 Unaudited Q1 FY21 Unaudited Q2 FY20 Unaudited H1 FY21 Unaudited H1 FY20 Unaudited FY20 Audited 725 513 803 1,237 1,636 2,933 334 157 670 1,874 Gross Profit 390 356 133 746 570 1,060 Margin % 53.8% 69.5% 16.6% 60.3% 34.8% 36.1% Employee benefits expense 141 159 209 300 417 796 Other expenses (net) 114 80 167 194 334 686 Exchange Loss/ (Gain) 23 26 123 49 143 437 EBITDA 112 91 -366 203 -324 -860 EBITDA (Pre-FX Gain / Loss) 135 117 -243 252 -181 -423 Margin % 18.6% 22.8% -30.2% 20.4% -11.1% -14.4% Less: Depreciation 69 71 76 140 149 419 EBIT 43 20 -442 63 -473 -1,278 EBIT (Pre-FX Gain / Loss) 66 46 -319 112 -330 -841 Margin % 9.1% 9.0% -39.7% 9.1% -20.2% -28.7% Net Finance costs 192 403 292 595 587 1,340 Profit (Loss) before tax -149 -383 -734 -532 -1,060 -2,618 Less: Exceptional Items Loss / (Gain) (822) 15 44 (807) 52 66 Less: Share of (Profit) / Loss of Associates & JV -5 1 0 -4 0 Less: Taxes 2 1 0 3 1 7 Net Profit/ (Loss) after tax 675 -399 -778 276 -1,115 -2,692 Less: Non-Controlling Interest -1 -1 -31 -2 -33 -50 Net Profit Attributable to Shareholders 676 -398 -747 278 -1,082 -2,642 SUZLON POWERING A GREENER TOMORROW#2121 Consolidated Balance Sheet (Cr.) Liabilities Shareholders' Fund Non controlling interest Non-Current Liabilities (a) Financial Liabilities (i) Borrowings 6,112 842 (ii) Lease Liabilities 56 63 (iii) Other Financial Liabilities 26 28 Intangible assets under development (b) Provisions 88 93 Investments in asso. and joint ventures Sept-20 Mar-20 Assets Sept-20 Mar-20 -3,227 -10,983 Non Current Assets -59 -59 Property, plant and equipment 856 905 -3,287 -11,042 Right-of-use assets 138 143 Capital work-in-progress 107 110 Investment property Goodwill Other intangible assets 34 35 8 8 223 268 3 24 22 12 20 (c) Other Non-Current Liabilities 1 1 Financial assets 6,283 1,027 (1) Other Investments and financial assets 384 284 Other non-current assets 50 51 1,825 1,836 Current Liabilities Current Assets (a) Financial Liabilities (a)Inventories 2,021 2,056 (i) Borrowings 292 8,844 (b) Financial assets (ii) Lease Liabilities 11 10 (i) Trade receivables 1,377 1,365 (iii) Trade Payables 1,200 1,298 (ii) Cash and cash equivalents 162 58 (iv) Other financial liabilities 1,009 5,301 (iii) Bank Balances other than above 0 25 Contract Liabilities 358 258 (iv) Loans 25 22 Other cur. liabilities 90 129 (v) Other Financial Assets 118 109 Provisions 662 706 (c) Current tax asset, net 7 20 3,621 16,545 (d) Other curr. assets (incl. held for sale) 1,083 1,040 4,792 4,695 Total Equity and Liabilities 6,617 6,530 Total Assets 6,617 6,530 SUZLON POWERING A GREENER TOMORROW#2222 22 Debt Profile: Net Debt Movement Sr. No. Particulars A Secured Loans 1 Term Loans/Working Capital Loans 0.01% OCD1 3 0.0001% CCPS2 Total Unsecured Loans 1 4% FCCB3 2 Term Loans Total C Gross debt [A+B] D Cash Sep'20 Mar'20 (Cr.) 4,322 11,755 631 1,840 6,793 11,755 210 1,339 44 43 254 1,382 7,047 310 6,737 13,137 134 13,003 Notes: Net debt [C-D] (1) Fair value of 0.01% Optionally Convertible Debentures issued by the Company to the lenders (2) Fair value of 0.0001% Compulsory Convertible Preference Shares issued by subsidiary of the Company to the lenders (3) Fair value of the liability component of 4% Foreign Currency Convertible Bonds issued by the Company to the bondholders SUZLON POWERING A GREENER TOMORROW#23CIN of Suzlon Energy Ltd - L40100GJ1995PLC025447 SUZLON THANK YOU