Equity Funding and Strategic Update

Recent 4 GW Project Win Is Value Accretive Tariff ~15% higher than similar SECI central grid connected auctions we have won Opportunity for 20%+ equity IRRs Potential of around 6.0x EV/EBITDA build cost Azure Power Present Value of Equity for 4 GW Win PV of Equity Value (USD Mn) $1,000 $800 $600 $400 $200 $- 10.0% 12.5% 15.0% Cost of Equity 9% Interest Rate 10% Interest Rate 11% Interest Rate Key Assumptions for 4 GWs Project Cost 59 - 63 ¢ / Watt Net PLF 28.9% 29.3% Leverage 75% Overloading 50% Tariff 4.11 c/ kWh Interest Rate 9.25 10.25% Opex 8% of Revenue Initially Degradation 0.60% Loan Tenor 20-22 Years Potential Upside Opportunities to reduce O&M given benefits of scale and technology Potential use of bi-facial modules could increase PLF Green bond financing could reduce lending costs and reduce equity requirements improving returns Further reduction in module prices and BOS reflecting buying power and gains in productivity Exchange rate- INR 71.45 to US$1 (New York closing rate of December 31, 2019), 1) PV Insights, Mercom 8 $/watt Module prices have a long history of declines (1) $0.80 $0.60 $0.40 $0.20 1Q;15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19

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