SMART Annual Report 2020-21

The 2-minute Annual Report

Adani Transmission Limited Our company intends to retain its undisputed leadership in ’s transmission and distribution segments. ATL. Outperformer

20,759 99,901 H Crore, market H Crore, market capitalisation, 31st capitalisation, 31st March, 2020 March, 2021

79 10 % CAGR growth in % growth in BSE market capital- Sensex (equiva- isation (listing to lent period) 2021) The big picture for FY 2020-21

-7.3 82 35 % de-growth % Increase in % share of ATL of the Indian ATL’s PAT in TBCB bids economy within India’s transmission sector Chairman Gautam S Adani’s overview

COVID-19 is a wakeup call for all of us to While we can look back and feel satisfied transform ourselves. There cannot be a about our results, I believe that the real phase better time for us to commence the journey of accelerated growth of the towards true self-reliance (Atmanirbharta) for as an entity that benefits from having a accelerating the building of our nation in the portfolio of companies with several strategic post-COVID-19 world. adjacencies, is only now gathering momentum. Capacity addition, sweating of assets, and What we have built over the past two decades a relentless focus on operational excellence is India’s largest integrated and yet diversified and efficiency ensured that the EBITDA of infrastructure business that is now manifesting our listed portfolio registered a year-on-year itself as an integrated ‘platform of platforms’ growth of 22% (H32,337 Crore in FY 2020-21). and moving us closer to unprecedented access Adani Transmission Limited (ATL) added 3,931 to the Indian end consumer. ckt km to its network, reaching 18,801 ckt km, I know of no business model akin to ours with and sold a record 7,169 Million units during the access to an unlimited B2B and B2C market year. over the next several decades. MD and CEO’s message Anil Sardana

In the last few years, Adani Transmission has Kurnool Transmission Limited) during the year emerged as one of the most attractive integrated under review that will widen its pan-India power transmission and distribution companies footprint. These acquisitions will consolidate in India. the company’s position as the largest Indian private sector transmission company and sustain The company trebled its transmission capacity its velocity towards its 20,000 ckt km goal in in just five years, the fastest percentage transmission lines by 2022. accretion to capacity (given similar scale) in the country’s transmission sector. The power transmission business comprised robust portfolio of ~18,801 ckt km (including The company increased its share of the country’s ~13,027 ckt km under operations and ~5,774 ckt power transmission segment in TBCB bids from km under projects) that should translate into 24% in FY 2015-16 to 35% in FY 2020-21. sustainable growth. The company strengthened its business number of transmission model through access to stable long-term debt Besides, an increasing projects based on the TBCB format of bidding synced to asset life in some cases that could be should make it possible to leverage the interpreted as quasi-equity; it replaced debt with company’s competitiveness, carving away a bonds, moderating interest outflow. larger market share. The company made two acquisitions (Alipurduar Transmission Limited and Warora- How we grew our business in a challenging FY 2020-21

Financial

82 4.7 92 27 % growth in PAT x, Net debt-to- % operational % operational to H1,290 Crore EBITDA EBITDA margin EBITDA margin (Transmission (Distribution business) business)

10.15 BBB-/Baa3 9.20 % Return on Credit rating by %, Debt cost Capital Employed S&P, Fitch and (weighted) Moody’s How we grew our business in a challenging FY 2020-21 (contd.)

Operational

99.87 99.9934 ~13,027 18,455 %, Transmission %, Distribution supply Operational Ckt km, Operational system availability reliability (Average Transmission line MVA, Power Service Availability length Transformation Index) Capacity

33 100 98 Operational % of projects % of projects substations commissioned within commissioned within budgeted cost the contracted timeline How we grew our business in a challenging FY 2020-21 (contd.)

Strategic

Acquired Warora Kurnool tariff -based competitive from Bandra to Bhayandar on Transmission Limited (line bidding (Letter of Intent the western side and Sion to length ~1756 ckt km) from awaited). Mankhurd on the eastern side. Essel Infraprojects Limited at Completed the first GIS AEML accounted for 61% of H an Enterprise Value of ~3,370 substation of 950 MVA, the company’s revenues in Crore. 400/220/132 kV at Badaun in FY 2020-21. Acquired Alipurduar March 2021^. Around 1,455 ckt km and Transmission Limited* (line Designed India’s first 765kV 5,500 MVA transformation length ~650 ckt km) from D/C transmission tower with capacity of ATL is dedicated Kalpataru Power Transmission Double Delta configuration. to the transmission of green Limited for an Enterprise power. ATL’s distribution Value of H~1,300 Crore. The company’s distribution business intends to access network (AEML) comprises and supply 30% of ’s Won two projects (MP 400 sq km, catering to packages 1 and 2) with a line needs with renewable energy Mumbia’s electricity needs by 2023. length ~1525 ckt km under of over 3 million households

*49% stake. ^Substation charged on 2nd April, 2021. Distribution business (AEML). Enhancing consumer value

System Tariff Complaints E-payment availability decline decline receipts

99.9926 9.18 26 49 (%), System (H per kwh) Tariff % decline in % of receipts availability, before April 2020 complaints relating through e-payment, FY 2019-20 to no power supply, FY 2019- 20 FY 2020-21

99.9934 7.47 23 67 (%), System (H per kwh) Tariff % decline in other % of receipts availability, after April 2020 service complaints, through e-payment, FY 2020-21 FY 2020-21 FY 2020- 21 Distribution business (AEML). Enhancing consumer value (contd.)

SAIDI SAIFI CAIDI (disruptions) (disruptions) (interruption)

39.12 1.24 31.46 Minutes per Events per Customer average consumer per year, consumer per year, interruption duration FY 2019-20 FY 2019-20 index, FY 2019-20

34.38 1.11 31.11 Minutes per Events per Customer average consumer per year, consumer per year, interruption duration FY 2020-21 FY 2020-21 index, FY 2020-21

SAIDI: System Average Interruption Duration Index SAIFI: System Average Interruption Frequency Index CAIDI: Customer Average Interruption Duration Index Our priorities Safe and secure business operations

To be a fully digital utility with agility and adaptability of business processes for business continuity Ensure timely accomplishment of targets and sustained livelihood of directly and indirectly dependent workers and their families Maintain 25% market share in India’s TBCB transmission bids Enhance business process efficiencies in the T&D business leading to customer affection Help ‘green the grid’ Geographic footprint Presence in 12 States

1 MEGPTCL (1,217 ckt km) 24 GTL** (486 ckt km) 2,3,4,5 ATIL (3,834 ckt km) 25 OBTL** (89 ckt km) ~18,801 ~36,766 6 ATSCL(97 ckt km) 26,27 NKTL (304 ckt km) ckt km MVA 7 MTSCL (300 ckt km) 28 FBTL (292 ckt km) TRANSMISSION TRANSFORMATION 8,9 WTGL (974 ckt km) 29 GTL** (411 ckt km) LINES CAPACITY 10 WTPL (2,089 ckt km) 30 OBTL (541 ckt km) 11 AEML (572 ckt km) 31 BKTL (481 ckt km) 12 STL (348 ckt km) 32 WRSS (292 ckt km) 13,14 RRWTL (611 ckt km) 33 LBTL (352 ckt km) 15,16,17 CWRTL (434 ckt km) 34 JKTL (38 ckt km 31 28 25 18 ATRL (278 ckt km) 35 KVTPL (74 ckt km) 19 HPTL (116 ckt km) 36, 37, 38 WKTL (1756 ckt km) 20 BPTL (133 ckt km) 39 MP Package 1*** (~465 24 29 ckt km) 23 21 TPTL (164 ckt km) 30 40 MP Package 2*** 26 22, 23 ALTL (650 ckt km) (~1060 ckt km) 40 32 33 27 Notes: 34 39 1) Maps not to scale (for representation purpose only) 2) Assets includes fully built, under- 36 construction projects based on regulatory - approved and bid-based tariff profiles.

35 **GTL: 2 elements are operational; balance a is under construction. 37 OBTL: 1 element is operational; balance is under construction.

38 *** Package awarded through TBCB (LOI a awaited). b c a. Dahanu - Ghodbunder Transmission line d (169 ckt km) b. MSETCL Boisar - Versova Transmission e line (91 ckt km) e c. Dahanu - Versova Transmission line (106 AEML ckt km) (572 ckt km) d. Dahanu - MSETCL Viraj Transmission line (26 ckt km) e. Other transmission line within Mumbai (180 ckt km) Operational assets are plotted in red Under-construction assets are plotted in black ATL . First-mover in a fast-moving sector

First +/-500kV First 2 x 40% First use of a First three gantry HVDC fixed series steel valve hall in arrangement transmission line compensation an HVDC project. layout in constructed by a used by a private the 765kV private player. player. Rajnandgaon substation.

First use of a First instance First use of a First use of Designed Delta of long-distance six-phase string a 765kV D/C Tower for 765kV communication 400kV gantry at transmission Double Circuit across a 270 km Sami. tower with line to comply transmission Double Delta with aviation line without configuration. no-objection a repeater requirements. station (Raman Amplifier). What we are What we intend today to be tomorrow

The fastest growing and the Retain our undisputed largest private transmission leadership in India’s & distribution company in transmission and distribution India segments Longest private HVDC Commission 20,000 ckt km of line in Asia ( to transmission lines by 2022 Mahendragarh) ~30% of renewable procurement as a percentage of our delivered electricity mix by FY 2022-23 (from 3% in FY 2020-21) We are not just focused on emerging better but cleaner as well.

In S&P Global’s Corporate Targeted 40-45% reduction Received certifications for nine Sustainability Assessment in GHG emission per unit of management systems (2020), ATL was ranked the 2nd revenue by 2024 over the (ISO 9001, ISO 14001, ISO best in India and 41st among the baseline of FY 2018-19 45001, ISO 50001, ISO 55001, world’s electric utility companies ISO 27001, ISO 22301, ISO 27031 and ISO 26000) under Integrated Management System initiative

Three substations (Mundra Committed to rainwater Committed for 100% auxiliary HVDC, Mahendragarh HVDC & harvesting at all substations and consumption from renewable Koradi SS) and Adani Dahanu achieving water neutrality of sources at all substations in Thermal Power Station of AEML 100% of transmission assets in transmission assets received Single-use-Plastic-Free the company portfolio certificates from CII

Achieved Zero Waste to Committed to Health and Inclusive growth by undertaking Landfill certification for 100% Safety of workforce with Zero CSR initiatives aligned with of its generation assets in the Harm and Zero Leak objective. business impacts to leave company portfolio Achieved Zero fatality in the positive footprints and societal reporting year and reduction in happiness LTIFR by 58% over the previous year We continued to touch the lives of the marginalised

3.67 2,410 18 25.26 Million Villages States H Crore, CSR people touched expenditure Areas of engagement

COMMUNITY SUSTAINABLE COMMUNITY EDUCATION HEALTH LIVELIHOODS INFRASTRUCTURE DEVELOPMENT DEVELOPMENT 5 reasons for our optimism

1 2 3

India is at the The global bottom end in ATL is present in a transmission sector the ownership of a sector fundamental to is entering a golden range of convenience- human existence. age due to a dramatic enhancing consumer Power development - appliances – but renewable energy likely to increase

4 5

India’s T&D sector India at the attracting government cusp of a reform, catalysing consumption growth explosion ATL. Right place and right time.

Accelerated Uniquely integrated High margin (EBITDA investments in the presence in the T&D margin ~92% sector segments for Transmission segment) and low risk business model

Trebled the 35% share of Stable long-term debt; transmission capacity TBCB bids in India’s replaced bank debt in just five years, the transmission sector in with bonds; robust fastest in the sector FY 2020-21. Capital Management Programme To read the full ATL Integrated Annual Report 2020-21, click here: https://reports.adani.com/Adani-Transmission-Limited-Annual-Report/index.html This is an extra investor initiative that extends beyond the exhaustive disclosures of the Company’s Integrated Annual Report 2020-21