#1Suzlon Energy Limited Investor Presentation Financial Year 2021 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. 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SUZLON POWERING A GREENER TOMORROW#33 Suzlon Overview 18,800+ MW Installed Wind Energy Capacity 12,000+ WTGs Installed 1 No.1 in India's Renewable Sector SUZLON POWERING A GREENER TOMORROW 5,450+ Workforce 1,800+ Customers Globally ~33% Cumulative Market share SUZLON POWERING A GREENER TOMORROW#4End to End Strategy Clearly Defined A Wind Resource Assessment 1. Large network of Met masts 2. Data collection for potential sites G Life Cycle Asset Management B Land Acquisition and Approvals 1. Long Term comprehensive OMS offering 2. Experienced manpower 3. In-house & world-class SCADA F Value Added Service 1. Regulatory Approval 2. REC, 3rd party PPA, Group Captive, CDM, CSR etc. 4 End To End Capabilities 1. Acquisition of land 2. Statutory approvals & clearances C Infrastructure & Power Evacuation 1. Developed Substations/Lines 2. Development of allied infra E Project Execution D 1. EPC experience of 20+ years 2. Design & Engineering 3. Strong project management with on-site E&C Technology & Supply Chain 1. Strong manufacturing capability and in-house R&D focused on continuous innovation 2. Strong SCM and in-house + global vendor base 3. Developed logistics network End to End Solution Provider for the entire life cycle of the Asset SUZLON POWERING A GREENER TOMORROW#55 Profitability: Steps to mitigate challenges Twin challenges arising out of low tariff and sharp increase in steel prices will have significant adverse impact on profitability Organisation has undertaken proactive measures to mitigate the impact of this COGS Reduction through Value Engineering Reduced Manpower and OPEX due to re- organisation Continuous LCOE Reduction through Technology Reduced interest cost due to Debt Restructuring SUZLON POWERING A GREENER TOMORROW#6Key Updates for FY21 Continuity of orders from marquee customers demonstrate Suzlon's strength in product and technology - RR of 204MW done in FY21; order book of 817.1 MW as on 31st Mar'21 Service business delivered good performance to customers despite Covid ✓ Successful completion of debt restructuring led to significant reduction in debt and interest cost Fixed Cost optimisation drive resulted in cost reduction * High volume growth in Global Wind Energy Sector led to challenges in supply chain impacting components availability and price Execution related challenges arising out of COVID-19 × Steep increase in steel prices by 79.3% in last one year (From March'20- May'21) on one hand and low tariff for our customers on the other hand have adverse impact on the profitability 6 Company set to take advantage of market opportunity post debt restructuring SUZLON POWERING A GREENER TOMORROW#77 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#88 Q4 FY21 Financial Metrics Particulars Net Volume (MW) Net Revenue Gross Profit Q4 FY21 Unaudited (Cr.) Q4 FY20 Unaudited 95 11 1,120 643 514 220 Gross Margin 45.9% 34.2% Employee Expenses 122 192 Other Expenses (net) 281 178 Exchange Loss / (Gain) -85 217 EBITDA 196 -367 EBITDA Margin 17.5% -57.0% Depreciation 62 114 Net Finance Cost 190 337 Taxes 1 5 Share of (Profit) / Loss of Associates / JV 6 -0 Net Profit (Pre Exceptional Items) -53 -823 Exceptional Loss / (Gain) 1 11 Net Profit (Post Exceptional Items) -54 -834 Non Controlling Interest 3 -11 Net Profit attributable to Shareholders -57 -824 Our initiatives of ramping up execution and cost optimization are yielding the desired outcome SUZLON POWERING A GREENER TOMORROW#99 FY21 Financial Metrics (Cr.) FY21 Particulars Audited FY20 Audited Net Volume (MW) 204 59 Net Revenue 3,295 2,933 Gross Profit 1,717 1,060 Gross Margin 52.1% 36.1% Employee Expenses 553 796 Other Expenses (net) 625 686 Exchange Loss/ (Gain) 4 437 EBITDA 534 -860 EBITDA Margin 16.2% -29.3% Depreciation 258 419 Net Finance Cost* 976 1,340 Taxes 5 7 Share of (Profit) / Loss of Associates / JV 3 -0 Net Profit (Pre Exceptional Items) -702 -2,626 Exceptional Loss/ (Gain) -805 66 Net Profit (Post Exceptional Items) 104 -2,692 Non Controlling Interest 1 -50 Net Profit attributable to Shareholders 103 -2,642 SUZLON POWERING A GREENER TOMORROW#10Wind Order Book (as at 31st Mar, 2021) 10 10 Particulars Capacity (MW) Central Auctions 632.1 State Auctions/PSU Captive/Retail Wind Firm Order Book 71.4 113.6 817.1 Value of Order Book (Gross) INR 4,715 Cr Remarks All orders are backed by signed PPAs. The order book comprises of orders from marquee customers such as Adani group and Enel Group. + SE Forge Ltd and Service orders over and above this order book In Q1 FY22, Suzlon received an order of 252 MW from CLP with a gross order value of INR 1,423 Cr Sizable auctioned capacity is yet to be tied up by bidders SUZLON POWERING A GREENER TOMORROW#1111 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#1212 Enhanced Government Focus High Priority for Renewables and Wind आत्मनिर्भर भारत Atmanirbhar Bharat #MAKE IN INDIA Make in India SUZLON POWERING A GREENER TOMORROW#1313 Renewables driven by Wind & Solar have begun to outstrip Thermal power installations Renewables (Wind and Solar) is already 2nd largest source of power 46.2, 12.1% 94.4, 24.7% 234.7, 61.4% 6.78, 1.8% Thermal ■Renewable ■Hydro Nuclear As on 31st March 21 All Nos. in GW In last 2 years, Renewables installation is > than Thermal sources Thermal Renewables (GW) 226.27 8.45 GW 234.72 77.64 FY19 FY21 FY19 16.79 GW 94.43 FY21 Renewables helping the country to be ATMANIRBHAR in power supply Renewables power sources ensure Power Security • Government has strong commitment towards pushing growth of Renewables • Renewables have also achieved grid parity and not totally dependent on favourable policies for competing with conventional power tariffs PLF Parameter Conventional Solar Wind 60-70% ~18-24% Equipment Domestic/Imported Largely Imported Fuel Domestic/Imported No Fuel Cost Source: CEA, MNRE Tariff Stability Variable Constant for 25 years Renewable Energy steadily becoming dominant in Power basket ~38-42% "Made in India" No Fuel Cost Constant for 25 years Opportunities : Future Drivers for Renewable Industry growth in India Government plans to bid out 100 GW of Wind capacity in next 5 years RTC and Hybrid projects are next big thing in which Wind is an essential part - GOI has increased minimum share of any component in Hybrid projects to 33% from existing 25% SUZLON POWERING A GREENER TOMORROW#14Estimated Wind Installation forecast Indian Wind Market: Historical and Projected Commissioning Volumes COD Volumes in GW Transition Impact 5-6 Low vol. 5.5 due to 4-5 COVID - 3-4 19* 2-3 2.2 1.8 1.5 1.55 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22E FY23E FY24E FY25E 14 *Comments: 1) Suzlon did commissioning of 79.8MW 2) Current manufacturing capacity of wind components in India is 10GW 3) Estimates of FY22 depend on how COVID-19 will pan out during the year SUZLON POWERING A GREENER TOMORROW#15Key Industry Updates ☐ National Electricity Policy revision draft under process Policy updates ■ GEDA (Gujarat) Wind Energy Policy draft under process ■ MNRE issued OM mentioning that COVID-19 extension to be given for all projects scheduled after 1st Apr 2021 due to second wave. ■ISTS Charges Waiver extended till 30th June, 2025 ■ MoP has invited suggestions on the discussion paper for redesigning Renewable Energy certificates mechanism. MoP issued Electricity- Late Payment Surcharge Rules, 2021. ■ APTEL has directed Central Electricity Authority to frame rules and guidelines related to Banking of Wind Energy Projects S.NO. Agency Capacity MW 1 New Wind/Hybrid bids announced SECI RTC-II (RE+ Other sources with/without ESS) 2500 2 SECI HYBRID IV 1200 15 3 SECI XI 1200 SUZLON POWERING A GREENER TOMORROW#1616 Key Industry Updates New Developments expected in FY22 Government's notification of the Wind Park scheme. It will further encourage the deployment model of wind power projects going ahead. It will boost the confidence of investors leading to increase in wind capacity addition. Market updates ■ A record 93 GW of new wind capacity was added globally in CY 2020 with 52.95% growth as compared to CY 2019, wherein majority i.e. 52.08 GW was added by China ■ India added 1.50 GW of Wind power capacity in FY 20-21. Total wind capacity in India reaches to 39.2 GW. ■ SECI X Tender concluded by SECI for 1200 MW Wind Power at tariff of INR 2.70. SUZLON POWERING A GREENER TOMORROW#1717 Challenges >>> Competitive bidding regime and reverse auction have led to low tariffs which in turn has squeezed OEM margins & IPP returns >>> Sharp increase in steel prices by 79.3% in last one year (From March'20- May'21) >>> Slow pace of power evacuation infra development Supply chain issues due to globally high demand and also covid related disruptions >>> Execution challenges due to Covid SUZLON POWERING A GREENER TOMORROW#1818 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#19Products Optimized for Market Demand S111-140 2.1 MW S120-140 2.1 MW Proto Commissioned Aug'17 Proto Status S111-140 ~5-6% Higher Energy Yield S111-120 S120-105 S133-140 2.6 MW-3.0 MW (product series) Proto Date Status Date S133-105 Commissioned Aug '19 Commissioned Jun '18 S120-140 Commissioned Dec'18 S111 S120 ~6-7% Higher Energy Yield 19 Gaining competitive edge in auction regime - Leverage Cost out & AEP S120 S133 ~23-31% Higher Energy Yield SUZLON POWERING A GREENER TOMORROW#2020 Product Development S133: New Product S133-105 SB 63 - Won SKOCH award for Corporate Excellence SUZLON S128 has already been listed in the RLMM list The testing is in progress for our next generation of blade - SB65 and wind turbine S133 S133 Turbine Model - Applied for RLMM Listing ✓ Multiple Tower Options (Hybrid Lattice, Steel Tubular) Enables us to reach untapped wind sites in challenging terrains SUZLON POWERING A GREENER TOMORROW#21Financial Performance Industry Outlook Technology 21 21 Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#22Suzlon's Strengths in Indian Wind Energy Market Full Turnkey Solution Provider Pan India Presence 1 SUZLON Technology Leadership Strong Customer Relationship POWERING A GREENER TOMORROW 22 222 Best In Class Service Capabilities 25 Years Track Record End-to-end service provider with strong presence across value chain & customer segments SUZLON POWERING A GREENER TOMORROW#2323 Operations and Maintenance Services (OMS) 13.95 GW Under Service Globally 9,472 Wind Turbines SUZLON POWERING A GREENER TOMORROW Value Added Products Fire Suppression System, SC-Trinity, Quick Climb, Quick Sense >95% Average Machine Availability SUZLON POWERING A GREENER TOMORROW#24Capabilities: OMS India fleet overview Largest fleet under Operation and Maintenance fold in India MWs under service (as on 31st Mar 2021) 1.9 GW Rajasthan 0.5 GW Madhya Pradesh Complete comprehensive OMS including service & breakdown maintenance 100% of turbine sold by Suzlon within O&M fold ~33% All India installed Wind Capacity >1,800 customer relationships 25 years operating track record Young fleet size with average age of 11 years Gujarat 2.9 GW Maharashtra 1.8 GW BOP Service Management: ➤ 203 Substations . 73 owned and maintained by Suzlon ➤ 3,000 Km. EHV grid ➤ 10,000 Km. HV grid feeders Notes: 2.1 GW Karnataka 1.1 GW *Including Telangana: 1.5 GW in AP and 0.3 GW in Telangana Andhra Pradesh* Fleet under Operation and Maintenance fold in India (As on 31st March 2021) 2.6 GW (31st Mar'20) # of Turbines MW Tamil Nadu <= 1 MW 1,750 849 4,196 5,701 3,035 6,361 8,981 >1 MW <2 MW =>2 MW Total Custodian of 3rd largest installed power capacity (from all sources) in India 12,911 SUZLON POWERING A GREENER TOMORROW 24 14#2525 Financial Performance Industry Outlook Technology Suzlon Strengths Detailed Financials SUZLON POWERING A GREENER TOMORROW#2626 Consolidated Income Statement (Cr.) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Particulars Unaudited Unaudited Unaudited Audited Audited Revenue from operations 1,120 938 643 3,295 2,933 Less: COGS 606 480 423 1,577 1,874 Gross Profit 514 457 220 1,717 1,060 Margin % 45.9% 48.8% 34.2% 52.1% 36.1% Employee benefits expense 122 131 192 553 796 Other expenses (net) 281 151 178 625 686 Exchange Loss/ (Gain) -85 40 217 4 437 EBITDA 196 136 -367 534 -860 EBITDA (Pre-FX Gain / Loss) 111 176 -150 539 -423 Margin % 9.9% 18.7% -23.2% 16.4% -14.4% Less: Depreciation 62 57 114 258 419 EBIT 134 79 -481 276 -1,278 EBIT (Pre-FX Gain / Loss) 49 119 -264 280 -841 Margin % 4.4% 12.7% -41.0% 8.5% -28.7% Net Finance costs 190 194 337 976 1,340 Profit (Loss) before tax and Exceptional -56 -111 -818 -700 -2,618 Items Less: Exceptional Items Loss / (Gain) 1 0 11 -805 66 Less: Share of (Profit) / Loss of Associates & JV -6 7 0 -3 0 Less: Taxes T 0 5 LO 5 Net Profit/ (Loss) after tax -54 -118 -834 103 -2,692 Less: Non-Controlling Interest 3 -1 -11 -1 -50 Net Profit Attributable to Shareholders -57 -117 -824 104 -2,642 SUZLON POWERING A GREENER TOMORROW#2727 Financial Performance FY21 Consolidated Balance Sheet Amount in Rs. Crs. Liabilities Shareholders' Fund Non controlling interest Non-Current Liabilities (a) Financial Liabilities (i) Borrowings -3,401 -11,042 Capital work-in-progress Mar-21 Mar-20 Assets Mar-21 Mar-20 -3,343 -10,983 Non Current Assets -58 -59 Property, plant and equipment 804 905 Right-of-use assets 131 143 104 110 33 35 8 8 190 268 4 23 220 12 20 6,027 842 (ii) Lease Liabilities 55 63 (iii) Other Financial Liabilities 22 28 (b) Provisions 83 93 (c) Other Non-Current Liabilities 1 1 6,188 1,027 Investment property Goodwill Other intangible assets Intangible assets under development Investments in asso. and joint ventures Financial assets (1) Other Investments and financial assets Other non-current assets 9 403 284 54 51 1,754 1,836 Current Liabilities (a) Financial Liabilities Current Assets (a)Inventories 2,173 2,056 (i) Borrowings 175 8,844 (b) Financial assets (ii) Lease Liabilities 12 10 (i) Trade receivables 1,190 1,365 (iii) Trade Payables 1,582 1,298 (ii) Cash and cash equivalents 263 58 (iv) Other financial liabilities 1,013 5,301 (iii) Bank Balances other than above 0 25 Contract Liabilities 405 258 (iv) Loans 21 22 Other cur. liabilities 88 129 (v) Other Financial Assets 176 109 Provisions 539 706 (c) Current tax asset, net 6 20 3,814 16,545 (d) Other curr. assets (incl. held for sale) 1,019 1,040 4,847 4,695 Total Equity and Liabilities 6,601 6,530 Total Assets 6,601 6,530 SUZLON POWERING A GREENER TOMORROW#2828 Thank You! 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