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Company Background
Company Profile
Overview
Management
Team
Versatile and
Unique
Business
Model
Capacity Break-up by Geography
Rajasthan,
95 MW,
21%
‒ Leap Green Energy Pvt. Ltd. (“LGE”,
“Leap Green” or the “Company”) is a
wind IPP with an installed capacity of
453 MW and is currently in process of
acquiring 300 MW of assets
‒ Managed by Rajeev Akshay Karthikeyan
and Devanand Vijayan, over 10 years of
experience in the renewable energy (RE)
industry
‒ Demonstrated capability to acquire
operating assets at attractive pricing
‒ Highly visible green energy brand and
has successfully implemented the C&I(2)
and FIT(2) sales model
‒ In-house technical team driving
operational efficiency
‒ Best in-class wind forecasting and micrositing system with fully equipped inhouse team
Customer
Profile
‒ Large, diversified customer base of over
100 industrial and commercial customers
Growth
Plans
‒ Charted a plan to build a portfolio of
~2,450 MW by 2019 through acquisition
of operating assets, and turnkey
acquisitions in select states
Madhya
Pradesh,
30 MW,
7%
Tamil Nadu,
328 MW, 72%
Revenue (FY16) Break-up by Geography
Rajasthan
15%
Madhya Pradesh
4%
Tamil Nadu
81%
Financial Snapshot
FY16(3)
Details
Capacity (MW)
453
4 Year CAGR(4) - 110%
Revenue (USD mn)
48
4 Year CAGR(5) - 67%
EBITDA (USD mn)
29
4 Year Average Margin – 65%
Net Debt/Equity (x)
1.3x
Particulars
(1) Commercial and Industrial, (2) Feed-in-Tariff, (3) Financial Year Ending March 31, 2016, (4) CAGR from Mar -11 to Sep -15, (5) From FY12- FY16
Leap Green Energy Snapshot
 Largest aggregator of wind turbines in India
 Largest Indian Wind IPP in private green power sale
 First IPP in India to promote branded green power
under its “Wind Built” label
 Wind forecasting advisors to the Government of
Tamil Nadu/Rajasthan and Ministry of New and
Renewable Energy (MNRE), GoI
 Selling power to over 100 consumers including
marquee names
 Highest EBITDA per INR Million invested in India
 Highest levels of corporate governance - Strong
systems and processes in place since inception
 Robust financial position – Rated “BBB+” by
CRISIL, an S&P affiliate
 Developed strong in-house wind forecasting and
micro-siting capabilities
 Developed strong relationships with the banking
sector
Key Business Highlights
1
Large Scale wind IPP with
differentiated business model
 Large Scale: 453 MW operational
across 3 states, with a diversified sales
mix across C&I Sales and FIT models
 Rapid growth: Scaled up to 453 MW
within a span of 4.5 years
 IRR based asset acquisition
strategy: Acquisition of operational
and turnkey assets to eliminate
development risk and earn superior
IRRs
 Unique business model: Sale of
power through highly profitable C&I
Sales model  with attractive inflation
protected pricing which is at a
premium of ~100% to FITs  helps
drive superior portfolio IRRs
Differentiated model  Highly
profitable strategy
2
True Wind IPP operator
 Demonstrated strong in-house
operational expertise
‒ Disciplined three-tier preacquisition diligence process
‒ Post-acquisition, in house O&M
team has ensured machine
availability >95%
 Provides customers end to end
energy management solutions
‒ Undertaking scheduling and
allocation for over 100 customers
 Pioneered wind forecasting initiative in
India
‒ Supporting TANGEDCO through
IWPA, in forecasting wind
generation for the entire state
‒ Visible improvement in grid
availability in Tamil Nadu
Unwavering focus on execution of
the strategy
3
Experienced promoters backed by
marquee sponsors
 Led by Rajeev Akshay Karthikeyan
and Devanand Vijayan, with support
and experience of PSG Group, 100
year old reputed business house in
India
 Promoters with over 10 years of
experience in wind energy business
 Supported by a strong and
experienced management team
 Backed by JP Morgan, marquee
investor in the Asian infrastructure
space, managing US$1.5bn
 Have institutionalized high corporate
governance standards, robust
systems and processes
Driven by experienced promoters,
supported by a marquee sponsor
Charted a Plan to Scale to ~2,450 MW by FY19
Planned Capacity Growth upto FY19
453 MW
753 MW
1,406 MW
2,006 MW
2,456 MW
Capacity(1)
(MW)
450
600
654
453
753
Jun-16P(2)
Existing Capacity
Sep-15A
2,006
1,406
300
453
FY17P
FY18P
Incremental Capacity During the Year
FY19P
State-Wise Split
RJ
21%
MP
7%
RJ
32%
TN
72%
MP
4%
TN
64%
AP
11%
RJ
29%
MP
11%
KT
7%
AP
13%
RJ
28%
TN
42%
MP
13%
KT
10%
AP
14%
RJ
28%
TN
36%
KT
12%
TN
31%
MP
15%
TN – Tamil Nadu; MP – Madhya Pradesh, RJ – Rajasthan, AP – Andhra Pradesh, KT – Karnataka
Share of C&I Sales and FIT models
FIT
22%
C&I
78%
C&I
67%
FIT
54%
FIT
51%
FIT
47%
FIT
33%
C&I
53%
C&I
49%
C&I
46%
(1) Installed capacity which will become revenue generating in the next financial year, (2) Ongoing asset (300 MW) acquisition process, targeted to be completed by end of June
2016
Funds Needed for Pipeline
Private Equity
Investors
Equity:
USD 400 mn
IPO
Internal
Accruals
Total Funds:
USD 1,663 mn
Debt:
USD 1,262 m
Banks/ Bonds
Sr. No.
Year of issuance
Amount
(USD mn)
Tenor
(Years)
1
FY2017
452
14
2
FY2018
443
14
3
FY2019
366
14
Exchange Rate: 67 INR/USD
Project Pipeline (1/3)
Project Pipeline for FY17
Tamil Nadu
Rajasthan
Madhya
Pradesh
Rajasthan
Madhya
Pradesh
Karnataka
Andhra
Pradesh
120
60
20
101
101
101
151
Project Type
(Acquisition/
Turnkey)
Acquisition
Acquisition
Acquisition
Turnkey
Turnkey
Turnkey
Turnkey
Construction
Months
NA
NA
NA
12
12
12
12
Total Capex
(USD mn)
90
27
9
100
100
105
164
Total Fund
Requirement
(USD mn)
76
23
8
100
100
105
164
Required Debt
(USD mn)
72
21
7
75
75
79
123
Required
Equity(1)
(USD mn)
4
1
0
25
25
26
41
Location
Capacity (MW)
Fund Requirement: USD 452 mn Debt + USD 124 mn Equity(1) = USD 576 mn
(1) Equity excludes funding from internal accrual; Exchange Rate: 67INR/USD
Project Pipeline (2/3)
Project Pipeline for FY18
Tamil Nadu
Rajasthan
Madhya
Pradesh
Rajasthan
Madhya
Pradesh
Karnataka
Andhra
Pradesh
120
60
20
100
100
100
100
Project Type
(Acquisition/
Turnkey)
Acquisition
Acquisition
Acquisition
Turnkey
Turnkey
Turnkey
Turnkey
Construction
Months
NA
NA
NA
12
12
12
12
Total Capex
(USD mn)
94
27
9
106
109
119
119
Total Fund
Requirement
(USD mn)
75
21
7
99
102
111
111
Required Debt
(USD mn)
75
21
7
79
82
89
89
Required
Equity(1)
(USD mn)
–
–
–
20
20
22
22
Location
Capacity (MW)
Fund Requirement: USD 443 mn Debt + USD 85 mn Equity(1) = USD 523 mn
(1) Equity excludes funding from internal accrual; Exchange Rate: 67INR/USD
Project Pipeline (3/3)
Project Pipeline for FY19
Tamil Nadu
Rajasthan
Madhya
Pradesh
Rajasthan
Madhya
Pradesh
Karnataka
Andhra
Pradesh
30
15
5
100
100
100
100
Project Type
(Acquisition/
Turnkey)
Acquisition
Acquisition
Acquisition
Turnkey
Turnkey
Turnkey
Turnkey
Construction
Months
NA
NA
NA
12
12
12
12
Total Capex
(USD mn)
25
7
2
106
109
119
119
Total Fund
Requirement
(USD mn)
20
5
2
99
102
111
111
Required Debt
(USD mn)
20
5
2
79
82
89
89
Required
Equity(1)
(USD mn)
–
–
–
20
20
22
22
Location
Capacity (MW)
Fund Requirement: USD 366 mn Debt + USD 85 mn Equity(1) = USD 451 mn
(1) Equity excludes funding from internal accrual; Exchange Rate: 67INR/USD
Ample Opportunities for Leap Green
Ability to acquire assets from a large pool of existing operating assets
Phase III: Rapid Growth
of IPPs
1. FITs have increased
from INR 3.5-4.5/unit in
FY12 to up to INR 5.56.0/unit in FY15 leading
to 35% CAGR in IPP
capacity
2. AD reintroduced in
2013
Phase II : Aggressive AD Capacity Addition
1. Tax Savings
2. CER Upsides
3. Electricity Act 2003 - Feed in tariff/ RPO mechanism
4. IPP capacities started scaling up post 2009
Provides acquisition
pool of >18 GW
Installed Capacity (MW)
WIND CAPACITY ADDITION
DRIVERS
Phase I : Fragmented AD
1. Captive consumers
2. Tax Benefits – AD(1)
introduced
26,769
18,421
19,564
16,084
13,065
9,655
6,270
1,456
1,702
2,125
3,000
1,167
2000
2001
2002
2003
2004
(1) Accelerated Depreciation, Source: GWEC, MNRE
10,926
7,845
4,430
2005
2006
2007
2008
2009
2010
2011
2012
2013
Mar-16
Strong Policy Thrust on Renewable Power
Target of 60 GW Of Wind Energy Capacity in India by 2022
7.4
11.9
Tamil Nadu

33.8
Gujarat
‒ Extension of the Generation Based Incentives (GBI) scheme
upto 2018 and giving AD benefits
3.6
8.8
84.4
‒ Launch of National Wind Energy Mission
3.3
Rajasthan
8.6
‒ National offshore wind energy policy to encourage development
of offshore wind assets
Capacity (GW)
18.8
1.0
AP
10.1
‒ Dedicated green evacuation corridor(1)
44.2
Maharashtra
4.5
7.6
‒ Focus on improving grid management through forecasting
45.4
Karnataka

2.6
6.2
55.9
MP
Others
Central Government has adopted various measures to encourage
wind energy growth such as:
0.9
6.2
10.5
0.6
9.3
Installed Capacity (FY15)
Potential Capacity (2)
Target Capacity (FY22)
Wind has been the most proven source of power amongst
renewable energy sources with a stabilized tariff regime
supporting its future growth
The government has proposed various policy changes through
the Amendment to Electricity Act 2014, Amendment to National
Tariff Policy and National Renewable Energy Act 2015 to
augment the growth of renewable energy and achieve the
specified targets
Source: MNRE, ICRA, CRISIL, NIWE, (1) Expected to impact states of Tamil Nadu, Karnataka, Andhra Pradesh, Gujarat, Maharashtra, Rajasthan, Himachal Pradesh and
Jammu & Kashmir; (2) Wind potential at hub height of 100 meters (Source: NIWE WRA)
Key Risk and Mitigants
Key Risk
Mitigants
Competition from Solar Players
‒
‒ Increasing focus of Government on
Solar Energy
Solar IPPs are currently charging INR 4.6/ unit, such low tariffs are unsustainable in
the long run as it is difficult to make more than 10%-11% equity IRRs at this level
‒
Solar generation peaks during day time, however the peak industrial demand is in
evening post 6:00 pm which coincides with peak wind generation
‒ Falling capital cost of solar making it
more lucrative
‒
Since solar IPPs can provide power only for six hours a day, hence the industrial
consumers have to buy power from wind IPPs or SEBs
Curtailment of Wind Power
‒
Forecasting initiative of LGE has helped significantly improve grid availability in Tamil
Nadu as the major reason for curtailment was unpredictability of wind power
generation
‒ Curtailment issues started in
Rajasthan as well
‒
Various steps taken by government such as developing Green Energy Corridor,
establishment of Renewable Energy Management Centres (REMC) to manage
renewable power evacuation etc.
Tariff Based on Competitive Bidding
‒
Competitive Bidding in wind is unsustainable due to the following
‒ Downward pressure on tariffs
‒ Low grid availability in Tamil Nadu
due to backing down of wind power
‒ Guidelines published by Ministry of
New and Renewable Energy
(MNRE) for competitive bidding for
wind

Higher unpredictability of wind power generation as compared to other fuel
sources makes it difficult to arrive at a competitive tariff

Low tariffs would be unviable as the capital cost incurred by the wind power
generators is comparatively higher and competitive bidding could end up in pricing
out the players from the market
Thank You