Equity Funding and Strategic Update slide image

Equity Funding and Strategic Update

Key Highlights of Recent Actions to Increase Shareholder Value Highlights Won 4 GW(¹) project with an opportunity to earn equity returns over 20% We will not issue shares unless it is the lowest cost source of equity for our projects; Focused on pursuing lowest cost of capital. Hired advisor to sell assets; initial good interest; closing expected before new equity is needed Shed incremental 150 MWs of contracts (total of 600 MWs) that did not meet threshold returns Recent cost cutting initiatives to drive lower capex as well as a decline of over 10% in G&A in FY'21 (2) Present Value of Equity (No value added for future growth, cost reductions or platform) PV of Equity Value (USD Mn) $2,500 $2,000 $1,500 $1,000 $500 10.0% 12.5% Cost of Equity 15.0% 9% Interest Rate 10% Interest Rate 11% Interest Rate Expect to achieve 9.2 - 10.25% lending cost Current market cap is ~$600 mn (1) Includes 2 GWs that LOA has yet to be received. (2) FY'20 G&A is expected to be $32 million 7 | Copyright © 2020 Azure Power | www.azurepower.com Azure PowerⓇ
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