SUZLON ENERGY LTD. — Interim / Quarterly Report 2021

Jun 29, 2021

29th June 2021.

National Stock Exchange of India Limited, "Exchange Plaza", Bandra-Kurla Complex, Bandra (East), Mumbai-400051.

BSE Limited, P.J. Towers, Dalal Street, Mumbai-400001.

Dear Sirs,

Sub.: Suzlon announces Q4 FY21 Results.

In continuation to our letter of even date, enclosed please find the copy of press release and presentation in the subject matter, which are also available on the website of the Company (www.suzlon.com).

This is for your information as also for the information of your members and the public at large.

Thanking you,

Yours faithfully, For Suzlon Energy Limited

Geetanjali S.Vaidya, Company Secretary.

Encl.: As above.

For Immediate Release 29th June, 2021

Suzlon announces Q4 FY21 Results

• Revenue FY21 at INR 3,294.65 crores, Q4 FY21 INR 1,119.95 crores
• Pre-forex EBITDA in FY21 INR 538.74 crores, and in Q4 FY21 INR 111.17 crores

Pune, India: Suzlon Group, India's largest renewable energy solutions provider, announced its fourth quarter (Q4 FY21) and annual audited results for financial year 2020-21 (FY21).

Tulsi Tanti, Chairman and Managing Director, Suzlon Group said, "It was an unprecedented and challenging year where economies around the world were impacted by the COVID-19 pandemic. Unfortunately, India was and still remains one of the worst effected countries. Like all industries in the country, The Indian Wind Energy sector has also been adversely impacted mainly due to uncertainty and operational issues posed by the pandemic. The sector was restricted to low volumes with installations of only 1.5GW which is lower by almost 30% from last year which amounts to only 15-18% capacity utilization in India. Despite that total wind energy installations in India stand at 39.24GW which is nearly 42% of the total renewable energy installations in the country."

"Massive global push for renewables post COVID-19 and the Government's thrust on 'Make in India' and 'Aatmanirbhar Bharat' will help Suzlon manufacture wind turbines and its components for the sector as a whole in the future and reduce imports while creating long term sustainable jobs and energy security."

Ashwani Kumar, CEO, Suzlon Group said, "For Suzlon, this was the first year of restarting our operations post debt restructuring. While our installations remained low, our strategic imperatives for the year were restarting our manufacturing facilities, ensuring continuation of our OMS operations without interruptions and fulfilling the obligations of our debt restructuring. However, exponential increase in commodity prices like those of steel has impacted our profitability significantly in India."

"Our service business teams have done exceptionally well in keeping all our sites operational to generate uninterrupted power throughout the lockdown period, safe-guarding our customer's assets and revenues, while providing an essential service to the nation. We closed the year with a healthy order-book of over 817 MW which we aim to service this year."

Suzlon Group Q4 FY21 and Annual financial performance (FY21) at a glance (consolidated):

Revenue

• o FY21 at 3,294.65 crores
• o Q4 FY21 at 1,119.95 crores

Operating Performance

EBIDTA (Pre-forex)

• o Profit of INR 538.74 crores in FY21; EBITDA margin at 16.35%
• o Profit of INR 111.17 in Q4 FY21; EBITDA margin at 9.93%

EBIT (pre-forex)

• o Profit of INR 280.36 crores in FY21
• o Loss of INR 49.12 crores in Q4 FY21
• Net Loss (before exceptional items) of INR 701.87 crores in FY21; Net loss (before exceptional items) of INR 52.84 crores in Q4 FY21

This is also to inform that Suzlon Wind Energy Corporation, USA (SWECO), a step down subsidiary of the Suzlon Energy Ltd., filed for voluntary liquidation in the United States Bankruptcy Court of the Northern District of Illinois, Eastern Division under Chapter 7 of the United States Bankruptcy Code and Federal Rules of Bankruptcy Procedure of the USA on June 29, 2021. The board of SWECO took this decision in wake of continued financial stress sustained by its operations during the pandemic. We do not foresee this decision to have any direct and/or material impact on Suzlon Energy Ltd.

Industry update

• Ministry of New and Renewable Energy (MNRE) issued a memorandum mentioning that Covid-19 extension is to be given to all projects scheduled post April 1, 2021 due to the impact of the second wave of COVID-19.
• The Inter State transmission charge waiver has been extended till 2025.
• Ministry of Power has issued The Electricity Late Payment Surcharge Rules, 2021.
• Appellate Tribunal for Electricity has directed Central Electricity Authority to frame rules and guidelines related to Banking of Wind Energy Projects
• SECI X bidding concluded by SECI for 1200 MW of Wind Energy at a tariff of INR 2.77 per unit
• SECI has floated a wind energy tender for 1200 MW (SECI XI) on May 25, 2021 which is due on July 6, 2021
• SECI Hybrid IV tender was floated on April 15, 2021 and the due date has been extended to July 2, 2021
• SECI issues RfS for supply of 5000 MW Round-The-Clock Power from ISTS-connected Renewable Energy Projects, complemented with Coal based Thermal Power in India (RTC-II)

About The Suzlon Group

The Suzlon Group is one of the leading renewable energy solutions provider in the world with a footprint across 18 countries in Asia, Australia, Europe, Africa and the Americas. Headquartered at Suzlon One Earth in Pune, India; the Group is comprised of Suzlon Energy Limited (NSE & BSE: SUZLON) and its subsidiaries. A vertically integrated organization, with over twenty five years of operational track record, the group has a cumulative global installation of over 18.8 GW of wind energy capacity, over 5,450 employees with diverse nationalities and world-class manufacturing facilities. Suzlon is the only Indian wind energy company with a large in-house Research and Development (R&D) set-up in Germany, the Netherlands, Denmark and India. Over 12.9 GW of the Group's installations are in India, which makes up for 33 % of the country's cumulative wind energy installations, making Suzlon the largest player in this sector. The Group is the custodian of over 12.9 GW of wind energy assets under service in India making it the 3rd largest Operations and Maintenance Company (over 8,900 turbines) in Indian power sector. The Group has 1.0 GW of wind energy assets under service outside India.

Suzlon corporate website: www.suzlon.com Follow us on Social media:

Press Contact Suzlon Group	Investor Relations Contact Suzlon Group
Dharini Mishra	Shilpa Gupta
Corporate Communications, Suzlon Group	Investor Relations, Suzlon Group
Mobile: +91 86686 99805	Tel.: +91 Phone: +91.20.67022054
E-mail: ccp@suzlon.com	E-mail: investorrelations@suzlon.com

Suzlon Energy Limited

Investor Presentation Financial Year 2021

Disclaimer

• This presentation and the accompanying slides (the "Presentation"), which have been prepared by Suzlon Energy Limited (the "Company"), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
• This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, reliability or fairness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. In particular, but without prejudice to the generality of the foregoing, no representation or warranty whatsoever is given in relation to the reasonableness or achievability of any projections contained in the Presentation or in relation to the bases and assumptions underlying such projections and you must satisfy yourself in relation to the reasonableness, achievability and accuracy thereof.
• Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the wind power industry in India and world-wide, the Company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
• No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.
• No offering of the Company's securities will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Accordingly, unless an exemption from registration under the Securities Act is available, the Company's securities may not be offered, sold, resold, delivered or distributed, directly or indirectly, into the United States or to, or for the account or benefit of, any U.S. Person (as defined in regulation S under the Securities Act).
• The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of such jurisdiction.

Suzlon Overview

18,800+ MW Installed Wind Energy Capacity

12,000+ WTGs Installed

No.1 in India's Renewable Sector

5,450+ Workforce

1,800+ Customers Globally

End to End Strategy Clearly Defined

End to End Solution Provider for the entire life cycle of the Asset

Profitability : Steps to mitigate challenges

Twin challenges arising out of low tariff and sharp increase in steel prices will have significant adverse impact on profitability

Organisation has undertaken proactive measures to mitigate the impact of this

COGS Reduction through Value Engineering

Reduced Manpower and OPEX due to reorganisation

Continuous LCOE Reduction through Technology

Reduced interest cost due to Debt Restructuring

Key Updates for FY21

• Continuity of orders from marquee customers demonstrate Suzlon's strength in product and technology RR of 204MW done in FY21 ; order book of 817.1 MW as on 31st Mar'21
• Service business delivered good performance to customers despite Covid
• Successful completion of debt restructuring led to significant reduction in debt and interest cost
• Fixed Cost optimisation drive resulted in cost reduction
• High volume growth in Global Wind Energy Sector led to challenges in supply chain impacting components availability and price
• Execution related challenges arising out of COVID-19
• Steep increase in steel prices by 79.3% in last one year (From March'20- May'21) on one hand and low tariff for our customers on the other hand have adverse impact on the profitability

Financial Performance	Industry Outlook		Technology
	Suzlon Strengths	Detailed Financials

Q4 FY21 Financial Metrics

Particulars	Q4 FY21Unaudited	Q4 FY20Unaudited
Net Volume (MW)	95	11
Net Revenue	1,120	643
Gross Profit	514	220
Gross Margin	45.9%	34.2%
Employee Expenses	122	192
Other Expenses (net)	281	178
Exchange Loss/ (Gain)	-85	217
EBITDA	196	-367
EBITDA Margin	17.5%	-57.0%
Depreciation	62	114
Net Finance Cost	190	337
Taxes	1	5
Share of (Profit)/ Loss of Associates / JV	6	-0
Net Profit (Pre Exceptional Items)	-53	-823
Exceptional Loss / (Gain)	1	11
Net Profit (PostExceptional Items)	-54	-834
Non Controlling Interest	3	-11
Net Profit attributable to Shareholders	-57	-824

(₹ Cr.)

FY21 Financial Metrics

Particulars	FY21Audited	FY20Audited
Net Volume (MW)	204	59
Net Revenue	3,295	2,933
Gross Profit	1,717	1,060
Gross Margin	52.1%	36.1%
Employee Expenses	553	796
Other Expenses (net)	625	686
Exchange Loss/ (Gain)	4	437
EBITDA	534	-860
EBITDA Margin	16.2%	-29.3%
Depreciation	258	419
Net Finance Cost*	976	1,340
Taxes	5	7
Share of (Profit)/ Loss of Associates / JV	3	-0
Net Profit (PreExceptional Items)	-702	-2,626
Exceptional Loss / (Gain)	-805	66
Net Profit (PostExceptional Items)	104	-2,692
Non Controlling Interest	1	-50
Net Profit attributable to Shareholders	103	-2,642

(₹ Cr.)

9

Particulars	Capacity(MW)	Remarks
Central Auctions	632.1	All orders are backed by signed PPAs.The order
State Auctions/PSU	71.4	book comprises of orders from marquee customerssuch as Adani group and Enel Group.
Captive/Retail	113.6
Wind Firm Order Book	817.1
Value of Order Book (Gross)INR 4,715 Cr
SEForge Ltdand Service orders over and above this order book

In Q1 FY22, Suzlon received an order of 252 MW from CLP with a gross order value of INR 1,423 Cr

Sizable auctioned capacity is yet to be tied up by bidders

Financial Performance		Industry Outlook	Technology
	Suzlon Strengths		Detailed Financials

Enhanced Government Focus

Renewables helping the country to be ATMANIRBHAR in power supply

• Renewables power sources ensure Power Security
• Government has strong commitment towards pushing growth of Renewables
• Renewables have also achieved grid parity and not totally dependent on favourable policies for competing with conventional power tariffs

Parameter	Conventional	Solar	Wind
PLF	60-70%	~18-24%	~38-42%
Equipment	Domestic / Imported		"Made in India"
Fuel	Domestic / Imported		No FuelCost
Tariff Stability	Variable	Constantfor 25 years	Constantfor 25 years

Renewable Energy steadily becoming dominant in Power basket

Opportunities : Future Drivers for Renewable Industry growth in India

Government plans to bid out 100 GW of Wind capacity in next 5 years

RTC and Hybrid projects are next big thing in which Wind is an essential part – GOI has increased minimum share of any component in Hybrid projects to 33% from existing 25%

Estimated Wind Installation forecast

14

Key Industry Updates

Policy updates

National Electricity Policy revision draft under processGEDA (Gujarat) Wind Energy Policy draft under processMNRE issued OM mentioning that COVID-19 extension to be given for all projects scheduled after 1stApr 2021 due to second wave.Waiver extended till 30thISTS ChargesJune, 2025MoPhas invited suggestions on the discussion paper for redesigning Renewable Energy certificatesmechanism.MoPissued Electricity-Late Payment Surcharge Rules, 2021.APTEL has directed Central Electricity Authority to frame rules and guidelines related to Banking ofWind Energy Projects

----------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	S.N0.	Agency	Capacity MW
New Wind/Hybrid	1	SECI RTC-II (RE+ Other sources with/without ESS)	2500
bids announced	2	SECIHYBRID IV	1200
	3	SECI XI	1200

New Developmentsexpected in FY22	•Government's notification of the Wind Park scheme. It will further encourage the deploymentmodel of wind power projects going ahead. It will boost the confidence of investors leading toincrease in wind capacity addition.
Market updates	A record 93 GW of new wind capacity was added globally in CY 2020 with 52.95% growth ascompared to CY 2019, wherein majority i.e. 52.08 GW was added by ChinaIndia added 1.50 GW of Wind power capacity in FY 20-21. Total wind capacity in India reaches to39.2 GW.SECI X Tender concluded by SECI for 1200 MW Wind Power at tariff of INR 2.70.

Challenges

• » Competitive bidding regime and reverse auction have led to low tariffs which in turn has squeezed OEM margins & IPP returns
• » Sharp increase in steel prices by 79.3% in last one year (From March'20- May'21)
• » Slow pace of power evacuation infra development
• » Supply chain issues due to globally high demand and also covid related disruptions
• » Execution challenges due to Covid

Financial Performance		Industry Outlook	Technology
	Suzlon Strengths		Detailed Financials

Products Optimized for Market Demand

Gaining competitive edge in auction regime – Leverage Cost out & AEP

S133: New Product SB 63 – Won SKOCH award for Corporate Excellence

• S128 has already been listed in the RLMM list
• The testing is in progress for our next generation of blade SB65 and wind turbine – S133
• S133 Turbine Model Applied for RLMM Listing
• Multiple Tower Options (Hybrid Lattice, Steel Tubular)

Financial Performance	Industry Outlook	Technology
-----------------------	------------------	------------

Suzlon Strengths	Detailed Financials

Suzlon's Strengths in Indian Wind Energy Market

End-to-end service provider with strong presence across value chain & customer segments

Operations and Maintenance Services (OMS)

9,472 Wind Turbines

Average Machine Availability

Capabilities: OMS

India fleet overview

Largest fleet under Operation and Maintenance fold in India

Fleet under Operation and Maintenance fold in India (As on 31st March 2021)

(31st Mar'20)	# of Turbines	MW
<= 1 MW	1,750	849
>1 MW < 2 MW	4,196	5,701
=>2 MW	3,035	6,361
Total	8,981	12,911

Custodian of 3 rd largest installed power capacity (from all sources) in India

Financial Performance	Industry Outlook	Technology
-----------------------	------------------	------------

Suzlon Strengths Detailed Financials

				(₹Cr.)
Particulars	Q4 FY21	Q3 FY21	Q4 FY20	FY21	FY20
	Unaudited	Unaudited	Unaudited	Audited	Audited
Revenue from operations	1,120	938	643	3,295	2,933
Less: COGS	606	480	423	1,577	1,874
Gross Profit	514	457	220	1,717	1,060
Margin %	45.9%	48.8%	34.2%	52.1%	36.1%
Employee benefits expense	122	131	192	553	796
Other expenses (net)	281	151	178	625	686
Exchange Loss / (Gain)	-85	40	217	4	437
EBITDA	196	136	-367	534	-860
EBITDA (Pre-FX Gain / Loss)	111	176	-150	539	-423
Margin %	9.9%	18.7%	-23.2%	16.4%	-14.4%
Less: Depreciation	62	57	114	258	419
EBIT	134	79	-481	276	-1,278
EBIT (Pre-FX Gain / Loss)	49	119	-264	280	-841
Margin %	4.4%	12.7%	-41.0%	8.5%	-28.7%
Net Finance costs	190	194	337	976	1,340
Profit / (Loss) before tax and ExceptionalItems	-56	-111	-818	-700	-2,618
Less: Exceptional Items Loss / (Gain)	1	0	11	-805	66
Less: Share of (Profit) / Lossof Associates & JV	-6	7	0	-3	0
Less: Taxes	1	0	5	5	7
Net Profit / (Loss) after tax	-54	-118	-834	103	-2,692
Less: Non-Controlling Interest	3	-1	-11	-1	-50
Net Profit Attributable to Shareholders	-57	-117	-824	104	-2,642

Financial Performance FY21 Consolidated Balance Sheet Amount in Rs. Crs.

Liabilities	Mar-21	Mar-20	Assets	Mar-21	Mar-20
Shareholders' Fund	-3,343	-10,983	Non Current Assets
Non controlling interest	-58	-59	Property, plant and equipment	804	905
	-3,401	-11,042	Right-of-use assets	131	143
Non-Current Liabilities			Capital work-in-progress	104	110
(a) Financial Liabilities			Investment property	33	35
(i)Borrowings	6,027	842	Goodwill	8	8
(ii) Lease Liabilities	55	63	Other intangible assets	190	268
(iii) Other Financial Liabilities	22	28	Intangible assets under development	4	12
(b) Provisions	83	93	Investments in asso. and joint ventures	23	20
(c) Other Non-Current Liabilities	1	1	Financial assets
	6,188	1,027	(I) Other Investments and financial assets	403	284
			Other non-current assets	54	51
				1,754	1,836
Current Liabilities			Current Assets
(a) Financial Liabilities			(a)Inventories	2,173	2,056
(i) Borrowings	175	8,844	(b) Financial assets
(ii) Lease Liabilities	12	10	(i) Trade receivables	1,190	1,365
(iii) Trade Payables	1,582	1,298	(ii) Cash and cash equivalents	263	58
(iv)Other financial liabilities	1,013	5,301	(iii) Bank Balancesother than above	0	25
Contract Liabilities	405	258	(iv) Loans	21	22
Other cur. liabilities	88	129	(v) Other Financial Assets	176	109
Provisions	539	706	(c) Current tax asset, net	6	20
	3,814	16,545	(d) Other curr. assets (incl. held for sale)	1,019	1,040
				4,847	4,695
Total Equity and Liabilities	6,601	6,530	Total Assets	6,601	6,530