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Investor Presentation

Illustrative Unit Economics Illustrative Levered Unit Economics An Illustrative Unit Economics for 350MWs that is representative of the Company's under construction projects, which includes blended economics across geographies and counter parties $/ Watt $0.40 $0.30 $0.24 $0.20 $0.03 $0.11 $0.10 $0.00 Equity Investment EPC Margin (2) (2) Incentive Key Assumptions $0.86 / Watt 13% of Project Cost 25 Years 25.5% $0.048 / kWh Project Cost (1) EPC Margin (2) $0.17 $0.07 PPA Tenor Net PLF Tariff Incentive (VGF) Degradation Value Creation Opex PPA Cash Flows Capitalizing the Illustrative Project $0.03 / W 0.6% ~8% of Revenue Initially Key Assumptions Scenario Equity Requirement IRR Multiple of Invested Capital Leverage 71%-80% 71% Project Debt $0.24 20.1% 1.27x Interest Rate 9.1% Tenor 21 Years (3) 80% Project Debt $0.21 35.2% 1.45x Due to its integrated business model, Azure has been able to capture outsize returns on recent projects (2) Note: This is an illustrative example based on assumptions. Actual results may differ and the differences may be material and adverse. Assumes 63.83 INR/USD exchange rate. All discounted figures based on 12.0% cost of equity. Total upfront investment equals gross project costs including modules, balance of system, land and financing costs. 1. 2. 3. This represents the margin Azure is able to retain because it does not use a 3rd party vendor. In addition, select projects have Viability Gap Funding Incentive offered by the government which partially offsets the project costs. Out of 80% of project debt required, 71% is financed through term lending and 9% through use of Azure USD Bond proceeds. 11 | Copyright © 2018 Azure Power | www.azurepower.com Azure PowerⓇ
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