Adani Transmission Limited Equity Presentation MAY 2020 CONTENTS Adani Group ATL – Company Profile Investment Strategy, 04-07 09-12 14-23 Value creation and Outlook ADANI: World class infrastructure ATL: Manifesting Adani’s Infrastructure ATL: Key Highlights and Objectives of 14 Excellence in T&D business & utility portfolio 04 09 Capital Management Program ATL: Reduced Dev. and Capex risk with High ADANI: Repeatable, robust & ATL at a Glance 10 Credit Discipline and no Equity Dilution 15 proven model to deliver RoE 05 Contracted Assets at a Glance 11 Case Study: Dev., O&M Effic. and Capital ADANI: Repeatable, robust 16 Management to create shareholder value business model applied Integrated Utility at a Glance 12 consistently to drive value 06 AEML (Integrated Utility): Significant De risking through Capital Management 17 ATL: A platform well-positioned To leverage growth opportunities in ATL: Strategic Objectives 18 T&D business 07 Transmission and Distribution businesses 19-20 growth opportunities ATL: Update on Covid-19 21 ATL: Outlook and Key Focus Areas 22-23 Regulatory Landscape Global Benchmarking Annexure 25-32 And ESG and Investment Case 33-35 37-46 ATL: Emulating Group’s Core Infra ATL: Regulatory Framework 25 Global Benchmarking: Adani Utility Philosophy at every phase 37 Portfolio vs. Global Utility peers 33 ATL: ESG Performance Capital Management Program 27 Demonstrating Global Excellence 38-39 Global Benchmarking: Regulatory ATL: Integrated ESG Framework Framework 34 Credit Rating 40 for enhanced value creation 28 ATL’s Evolution and Portfolio 41-42 ATL: Compelling Investment Case 35 ATL: Key ESG Metrics and Initiatives 29 Sector Outlook: Indian Transmission Sector Poised for Significant Growth 43 ATL: Environment awareness Size of Opportunity: Investment of and Initiatives 30 44 Rs. 8.2 tn/ USD 117 bn expected AEML: Initiatives towards ATL: Inculcating Safety Culture 45 reduction of carbon footprint 31 ATL: Governance Journey so far ATL: Harnessing Innovation and 46 and future glide path 32 Technology to Drive Excellence Adani Group Adani TransmissionLimited Investor Presentation | May 2020 Adani: World class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.3% 100% 75% 75% Philosophical shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL – Gas distribution network to serve key 100% 75% 37.4% geographies across India AAPT 75% APL AGL AEML – Electricity Abbot Point IPP Gas DisCom distribution network that AEL powers the financial capital of India Incubator Adani Airports – To operate, manage and 100% 100% 100% 100% develop six airports in the country AAHL ATrL AWL Data Airports Roads Water Centre Locked in Growth 2020 – Transport & Logistics - ~USD 21bn* Airports and Roads (Combined M-cap) Energy & Utility – Water and Data Centre • Orange colour represent public traded listed vertical | Percentages denote promoter holding • * As on April 30, 2020, USD/INR = 75.1 04 Adani TransmissionLimited Investor Presentation | May 2020 Adani: Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital intelligence planning structure of the asset Concessions Sourcing & quality Viability analysis and regulatory levels Asset Management Operational phase Activity agreements plan funding consistent with Strategic value Equity & debt asset life Investment case funding at project development Redefining the Envisaging evolution Complex O&M optimisations Successfully placed space e.g. Mundra of sector e.g. Adani developments on e.g. Solar plants seven issuances totalling Port Transmission time & budget e.g. ~USD 4Bn in FY20 APL All listed entities maintain Performance liquidity cover of 1.2x- 1.8x for FY21 Focus on liquidity planning ensures remaining stress free Low capital cost, time bound & quality completion providing long term stable cashflow & enhanced RoE 05 Adani TransmissionLimited Investor Presentation | May 2020 Adani: Repeatable, robust business model applied consistently to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Solar Largest Single Location Commercial Port Line in Asia Power Plant Private Thermal IPP (at Mundra) (Mundra – Dehgam) (at Kamuthi, Tamil Nadu) (at Mundra) Key APSEZ ATL AGEL APL Business Excellence in O&M – Highest Margin Highest availability High Availability Model benchmarked to global Constructed and standards among Peers in the among Peers Commissioned 9 Built availability of Attributes World EBITDA margin: 91%1,3 months 89%,5 EBITDA margin: 65%1,2 EBITDA margin: 90%1,4 Diverse financing sources – only Private Banks 31% Indian infrastructure Bonds 31% portfolio with four (4) PSU 38% Investment Grade (IG) PSU 55% issuers Private Banks 31% March 2016 Bonds 14% September 2019 Note: 1 Data for FY19; 2 Excludes forex gains/losses; 3 EBITDA = PBT + Depreciation + Net Finance Costs – Other Income; 4 EBITDA 06 Margin represents EBITDA earned from power sales and exclude other items; 5 H1 FY20 Data; Include listed Group companies Adani TransmissionLimited Investor Presentation | May 2020 ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Development Transmission Network of ATL - Present in 9 states with 21 Transmission (FY20): 1 transmission lines 14,739 ckms ; 52% of EBITDA - Central pool Longest Private HVDC Line in Asia AEML - Integrated utility catering to gateway city of Mumbai 48% of EBITDA - State pool Operating Efficiency Consumer-centricity ESG and Strong Margins Operations Robust network availability of ~99.8% and supply Integration of Customer and Operations Embedded ESG Framework for reliability of 99.99% Technology enabling AEML as a supplier of choice enhanced value creation Transmission EBITDA Margin – 92% Distribution EBITDA Margin – 24% ROE optimization via Self-funded growth model Capital Management Efficiency-led Development ensuring efficient capital churn Value Creation Development and O&M efficiencies Equity Value Re-designing capital structure Every Rs. 1 bn of Equity Invested resulted into savings of ~Rs.5 bn Creation though low cost capital and allows creation of Rs. 2.25 bn of optimizing ROE at 55% elongated maturity Equity Employed 07 Note: 1) Transmission network of 14,739 ckt kms include operational, under-construction; 2) FY20 - Availability, Margin and Supply reliability Company Profile Adani TransmissionLimited Investor Presentation | May 2020 ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution Strength and Pan Pan-India network & only private AEML - One of the best-run 3 million+ India Presence sector co. to operate 500 KV 93-year old integrated utility Retail Electricity Households HVDC in S-E Asia catering to gateway city of Mumbai Predictable and 31 years/ 17 years Annuity Returns INR 300 Bn/ US$ 4.3Bn 54%/ 46% Total Regulated Asset base(1) Avg. Residual Concession Life ROA / TBCB(2) (Fully built) (Transmission/ Distribution)(4,5) Robust Financial performance and 92% (Transmission) ~99.76 % INR 117 bn / US$ 1.7 bn BBB- / Baa3 strong Balance 24% (Distribution) Sheet EBITDA Margin Availability Approved Tariff Order International Investment (1) (5) (FY20) (FY20) (Fully Built) Grade Rating Note: US$/INR: 70; (1) Fully built estimate based on regulatory approved tariff and bid based tariff profile of operational, under-construction and under-acquisition projects of Transmission and Distribution business. This excludes HVDC project. No upsides have been assumed on account of operational efficiencies; (2) Including under-construction and under-acquisition assets on project cost basis and existing assets on book value basis; RTM – Regulated Tariff Mechanism; (3) S&P: BBB- / Fitch: BBB- / Moody’s: Baa3; (4) Average residual concession life for Transmission assets is as of FY19; (5) Operational History of 93 years; TBCB: Tariff Based Competitive Bidding 09 Adani TransmissionLimited Investor Presentation | May 2020 ATL at a Glance 100%1 Contracted Assets Integrated Utility 100% 74.9% 25.1% Qatar Investment Wholesale Consumer Authority (QIA) • 12 Operating TBCB Assets(1), 9 under construction TBCB Assets ROA Assets ROA Asset • Transmission network of 9,688(2) ckt kms; Longest Private HVDC Line in Asia 4 Operating Utility catering to Transmission Assets 3 mn+ Connections • Concession Life of 35 years + Remaining Life of Asset Concession Life of 35 1,892 MW of peak years + Remaining power demand Life of Asset Transmission 540 ckm lines/ 3,125 network of 5,051 MVA transformation ckt kms capacity Notes: 1) % denotes shareholding; 74% in Aravalli Transmission Service Company Limited; 2) Network includes operational, under construction as of 31st March, 2020 10 Adani TransmissionLimited Investor Presentation | May 2020 Contracted Assets at a Glance Contracted Assets Key Characteristics TBCB Fixed (Section 63) Tariff 35 years + Life Asset Life of Asset Asset Base Fully- Op. EBITDA No. of Assets built (Rs. Bn) FY20 (Rs. Bn) Counterparty Network Pool 20 137.1 8.0 Stable Business Parameters Growth levers • Steady stream of cash flows • 100% organic growth with robust under-construction pipeline • No throughput risk in Transmission sector • Payment pooling