Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q3 FY22 Earnings Presentation
63 slides from Jsw Energy's earnings presentation, Jan 19, 2022
Slide 1: Exchange cover letter for results presentation
Energy Limited Regd. Office : JSW Centre Bandra Kurla Complex Bandra (East), Mumbai - 400 051 CIN: L74999MH1994PLC077041 Phone: 022 – 4286 1000 Fax: 022 – 4286 3000 Website: www.jsw.in SEC / JSWEL 19th January, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exch
Slide 2: Q3 FY22 Results Presentation
Q3 FY22 Results Presentation January 19 2022
Slide 3: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement This presentation has been prepared by JSW Energy Limited (the “Company”) based upon information available in the public domain solely for information purposes without regard to any specific objectives, financial situations or informational needs of any parti
Slide 4: Key Highlights for Q3 FY22 (1/2)
Key Highlights for Q3 FY22 (1/2) • All plants and locations operating with strict adherence to Covid-19 protocols • Total Hydro Generation: higher by 13% YoY • Short-term Generation: increased by 3% YoY Operational • Overall Generation: lower by 3% YoY due to maintenance activities at Ratnagiri plan
Slide 5: Key Highlights for Q3 FY22 (2/2)
Key Highlights for Q3 FY22 (2/2) • Renewable-led growth to reach 10 GW capacity by FY25 and 20 GW by FY30 • 2.5 GW under-construction in full-swing: Update on • SECI IX & X 1.26 GW Wind projects: LT PPAs signed; phase-wise commissioning from Q1 FY23 2.5 GW Renewable • Group Captive 958 MW: LT PPAs s
Slide 6: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 5
Slide 7: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 6
Slide 8: Sustainability: Framework and Priorities
Sustainability: Framework and Priorities 17 Focus Areas with 2030 Targets from 2020 as Base Year Governance & Oversight by Sustainability Committee Climate Change: Biodiversity: No Net Loss for Biodiversity Committed to being carbon neutral by 2050 Mr. Sunil Goyal 2 Independent Reduce our carbon emi
Slide 9: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 Actuals FY30 Targets Improvement Strategic Initiatives and Approach • Increased share of renewable energy for deep decarbonization Climate • GHG Emissions 0.76 0.304 • Process efficiency improvements Change 60% tCO2e/ MWh • Replacement of condense
Slide 10: Sustainability: Initiatives and Disclosures
Sustainability: Initiatives and Disclosures JSW Energy signed SDG7 Energy Compact Key Sustainability Initiatives during Q3 • Next Decade Action Agenda to • Undertaken development of advance Sustainable Development Silvi-pasture plantation near Goal 7 (SDG7) on sustainable Barmer plant for community
Slide 11: Sustainability: Recognition of Global Best Practices
Sustainability: Recognition of Global Best Practices JSW Energy achieved a Leadership band with ‘A-‘ JSW Energy certified as a “Great Place To Work” score in the 2021 CDP Climate Change assessment JSW Energy is only Indian power generation company to Great Place To Work Certification is the mark of
Slide 12: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Figures are for Q3 FY22 Zero Severe/Major Injuries 80% of all contractors covered by JSW CARES assessment (up from 70% in Q2) 56,600+ Cumulative Safety Observations Influencing Positive Safety Behavior Of Our Workforce General Health Checkup and Work
Slide 13: Empowering Our Communities
Empowering Our Communities Empowering communities with sustainable livelihoods 17 Health Camps conducted across 35 villages near Sholtu, Under Project Charkha (in Sholtu/Kutehr), 208 women have ~2,000 saplings planted in 9M-FY22 covering a total area of screening 400+ individuals been trained with 1
Slide 14: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 13
Slide 15: JSW Energy: Growth Roadmap to 20 GW
JSW Energy: Growth Roadmap to 20 GW Renewables-led growth to 20 GW by 2030 In GW 20 Thermal New Growth Platforms Renewable - • Green Hydrogen Hydro • Hydro Pumped Storage Renewable - Wind • Battery Energy Storage 15.5 & Solar 10 5.5 4.6 2.5 GW No equity dilution envisaged for growth 1.4 Under cons
Slide 16: Renewable Energy Projects Under-Construction
Renewable Energy Projects Under-Construction 2.5 GW Under-construction Projects SECI: Wind Projects Tamil Nadu: 1,260 MW Blended tariff `3.08/unit (excl. hydro) SECI IX (810 MW) + SECI X (450 MW) •Total : ~`16,660 Crore Signed 25-year PPA with SECI Capex •Spent: ~`1,660 Crore Commissioning: pr
Slide 17: 225 MW Solar Plant Under-construction in Karnataka
225 MW Solar Plant Under-construction in Karnataka Project near completion; Commissioning from Q4 FY22 JSW Energy Q3 FY22 Results Presentation 16
Slide 18: 1.26 GW Wind Plants Under-construction in Tamil Nadu
1.26 GW Wind Plants Under-construction in Tamil Nadu Dedicated transmission line construction and civil work progressing well Orders placed for WTG equipment; Commissioning from Q1 FY23 JSW Energy Q3 FY22 Results Presentation 17
Slide 19: 240 MW Kutehr HEP Under-construction in Himachal Pradesh
240 MW Kutehr HEP Under-construction in Himachal Pradesh Completed ~60% (12.7 km) tunneling work (~50% in Q2) well ahead of timelines Targeted Commissioning by Sept 2024 JSW Energy Q3 FY22 Results Presentation 18
Slide 20: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 19
Slide 21: Operational Performance – Q3 FY22
Operational Performance – Q3 FY22 Net Generation (MU) Hydro: PAF and PLF 13% 796 • Hydro PAF and PLF higher YoY Q3 FY21 Renewable 707 105% 107% 1391 MW Hydro* Short Term Q3 FY22 • Renewable Net Generation higher by 13% 9 MW Solar 707 789 Long Term YoY 25% 27% • Higher water flow at hydro plants YoY
Slide 22: Operational Performance – 9M FY22
Operational Performance – 9M FY22 Net Generation (MU) Hydro: PAF and PLF • Hydro PAF higher YoY - 3% 5,257 5,092 9M FY21 105% 109% Renewable • Renewable Net Generation lower by 3% YoY 1391 MW Hydro* 5,257 Short Term 62% 58% 9M FY22 • Hydro generation was impacted due to 9 MW Solar 5,037 Long Term lo
Slide 23: Consolidated Financial Performance
Consolidated Financial Performance Total Revenue1 (` Crore) EBITDA (` Crore) and EBITDA Margins 10% 13% • Highest Q3 EBITDA in last 5 years 2,792 6,081 5,546 2,467 • Q3 Total Revenue and EBITDA FY21 35% increase mainly attributable to higher 20% FY21 FY22 contribution from short term sales FY22 1,98
Slide 24: EBITDA Bridge
EBITDA Bridge Particulars in ` Crore Q3 9M LT PPAs and superior O&M ensuring steady EBITDA; one-off boosts from ST market JSW Energy Q3 FY22 Results Presentation LT: Long Term ; ST: Short Term 23 O&M: Operations & Maintenance
Slide 25: Robust Balance Sheet
Robust Balance Sheet • Large balance sheet headroom to pursue growth opportunities 20 GW Growth Path • Strong Liquidity with healthy cash balances1: `2,195 Crore Annual EBITDA • Internal accruals from existing portfolio to support long term growth ~5x • 84% of portfolio tied-up under Long Term PPA ~
Slide 26: Net Debt Movement
Net Debt Movement Particulars in ` Crore Strong cash flows & efficient project management resulting in Debt reduction despite growth capex JSW Energy Q3 FY22 Results Presentation * Includes unencumbered bank balances, FDs, and liquid mutual funds 25
Slide 27: Superior Financial Risk Profile
Superior Financial Risk Profile Net Debt (` Crore) Net Worth (` Crore) 7,671 15,939 15,789 16,082 13,900 14,507 6,719 6,565 6,509 13,037 6,206 6,021 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Leverage Ratios Wt. Average Cost of Debt Net Debt/Equity Net Debt/T
Slide 28: Trade Receivables
Trade Receivables • Receivables decline 20% YoY in Q3 FY22 • This is in sharp contrast to the power sector scenario which has witnessed 2% increase** YoY Consolidated Trade Receivables* (` Crore ) • QoQ values not strictly comparable due to seasonality in hydro plant operations 20% YoY 2500 • All pl
Slide 29: JSW Energy - Enhancing Shareholders Value
JSW Energy - Enhancing Shareholders Value Proven Execution Superior project execution skills: Projects set-up in lowest cost & time Excellence Differentiated business strategy for growth to 20 GW, entirely by RE – commissioning starting from Q4 FY22 Amongst the Strongest Balance Sheet in the s
Slide 30: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 29
Slide 31: Indian Economy
Indian Economy Real GDP Growth 30.00% 20.1% • During Q3, economic activity gained further traction, aided by 15.00% 5.4% 8.4% expanding vaccination coverage and improved business sentiments 4.6% 3.3% 3.0% 0.5% 1.6% 0.00% • With resurgence of Covid infections in Jan’22, multiple states imposed fresh
Slide 32: Power Demand
Power Demand Power Demand Growth YoY • Power demand in 9M FY22 saw a strong increase of 9.6% YoY +38.2% +40.0% • A strong pickup in economic activity coupled with +30.0% a low base effect. +17.4% +22.0% +20.0% +4.3% +2.2% • In 9M FY21 demand had declined by 4.2% YoY +8.8%+10.5% +0.4% +3.4% +10.0% +6
Slide 33: Power Generation
Power Generation Power Generation Growth YoY Segment-wise Share in Generation Total +38.5% Generation 1,376 1,389 1,382 1,018 1,113 +40.0% (BU) 3.1% 3.8% 3.7% 4.2% 3.8% +30.0% +22.5% 9.2% 10.0% 10.6% 11.0% 11.5% +20.0% +16.0% 9.8% +11.1% +11.2% +5.5% 11.2% 10.9% 12.4% 11.4% +7.5% +8.2% +10.0% +3.5%
Slide 34: Installed Capacity (1/2)
Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity 104.9 GW Central, State, +3,346 MW* Renewable, 98.5 GW 104.4 GW 25.1% 26.5% 26.7% +910 MW* +671 MW* 393.4 GW 393.4 GW Thermal, 46.5 GW Hydro, 59.8% 234.0 GW 11.8% +1,195 MW* Private, 48.4% Nuclear, 1.8% 6.8 GW 19
Slide 35: Installed Capacity (2/2)
Installed Capacity (2/2) Overall Segment-wise Net Capacity Addition (GW) RE Segment-wise Net Capacity Addition (GW) 10.4 14.0 0.3 12.1 0.3 9.4 12.0 11.2 8.6 0.8 0.1 0.5 0.9 0.3 0.5 7.4 1.6 2.1 0.4 9.4 8.6 7.4 1.6 5.2 4.1 0.4 10.4 9.3 0.4 4.3 4.1 2.2 6.5 6.4 0.9 5.5 3.4 1.0 0.5 2.8 FY19 FY20 FY21 9M
Slide 36: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q3 FY22 Results Presentation 35
Slide 37: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Location Capacity Q3 FY22 Q3 FY21 Change 9M FY22 9M FY21 Change YoY YoY % MUs MUs % MUs MUs % LT 89% 1,133 1,482 (24%) 3,980 4,171 (5%) Ratnagiri (1,200 MW) Total 100% 1,235 1,686 (27%) 4,160 4,505 (8%) Barmer (1,080 MW) LT 100% 1,638 1,632 +0%
Slide 38: Operational Performance – PLF
Operational Performance – PLF Plant Load Factor (PLF) Location Capacity Q3 FY22 Q3 FY21 9M FY22 9M FY21 Remarks – Q3 FY22 YoY LT 89% Impact of maintenance activities 52 (*70) 80 (*91) 62 (*81) 75 (*91) Ratnagiri (1,200 MW) partly offset by higher PPA tie-up Total 100% 51 (*67) 69 (*78) 57 (*75) 62 (
Slide 39: Consolidated Financial Results
Consolidated Financial Results 9M FY22 9M FY21 Particulars in ` Crore Q3 FY22 Q3 FY21 6,081 5,546 Total Revenue1 1,984 1,659 2,792 2,467 EBITDA 882 655 46% 44% EBITDA Margin(%) 44% 39% 676 639 Finance Cost 195 191 513 639 Interest Cost 171 191 164 - Exceptional2 25 - 854 873 Depreciation 281 292 1,2
Slide 40: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations 9M FY22 9M FY21 Particulars in ` Crore Q3 FY22 Q3 FY21 2,562 2,168 Standalone1 1,002 692 1,927 2,040 JSW Energy (Barmer) 625 682 1,027 1,099 JSW Hydro Energy 222 226 53 54 JPTL 18 18 5,709 5,353 Consolidated* 1,894 1,609 Entity-wise E
Slide 41: Q3 & 9M FY22 Performance – JSW Hydro Energy Ltd
Q3 & 9M FY22 Performance – JSW Hydro Energy Ltd Key Highlights Q3/9M FY22: Operational Performance Healthy Operational and Financial Performance • While till H1FY22, generation was impacted due to lower Period UoM Q3 Q3 9M 9M water flow, in Q3 FY22, due to heavy rains water flow FY22 FY21 FY22 FY2
Slide 42: Annexure 1: Re-organisation of Green and Grey Business
Annexure 1: Re-organisation of Green and Grey Business To facilitate growth and unlock value for the shareholders, the renewable energy business will be housed under ‘JSW Neo Energy Limited’, a wholly owned subsidiary of the Company, while the thermal business will continue to be housed in the Compa
Slide 43: Broad Corporate Structure : Existing
Broad Corporate Structure : Existing Ratnagiri – 1,200 MW Hydro Entities Vijayanagar – 860 MW JSW Energy Limited Nandyal – 18 MW Solar/Wind Solar – 10 MW Entities Total – 2,088 MW JSW Hydro Energy Limited JSW Energy (Barmer) Jaigad Power Transco JSW Power Trading Co. (1,391 MW) JSW Future Energy Lim
Slide 44: Broad Corporate Structure : Post re-organisation
Broad Corporate Structure : Post re-organisation Ratnagiri – 1,200 MW Vijayanagar – 860 MW Hydro Entities JSW Energy Limited Nandyal – 18 MW Solar/Wind Total – 2,078 MW Entities JSW Neo Energy JSW Energy (Barmer) Jaigad Power Transco JSW Power Trading Co. 3,859 MW Limited (1080 MW) Limited* Limited
Slide 45: Investor Relations Contact
JSW Steel Limited Investor presentation Investor Relations Contact: ir.jswenergy@jsw.in August, 2020
Slide 46: Independent Auditor's Review Report on Standalone Financial Results
INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF JSW ENERGY LIMITED 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of JSW ENERGY LIMITED (“the Company”), for the quarter and nine months ended
Slide 47: Statement of Standalone Unaudited Financial Results
SSW ENERGY LIMITED Registered Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbal-400051 CIN : L74999MH1994PLC077041 Statement of Standalone Unaudited Financial Results for the Quarter and Nine Months Ended December 31, 2021 % crore Quarter Ended Nine Months Ended | Year Ended | ae Part
Slide 48: Additional information pursuant to Regulation 52(4)
Additional information pursuant to Regulatlon 52(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended: Sr. No. Particulars As at! Quarter Ended As at/ Nine Months Ended As at/ Year Ended 34.12.2021 30.09.2021 31.12.2020 31.12.20
Slide 49: Notes to Standalone Results
Place : Mumbai Date : January 19, 2022 Notes : | 1 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 (including it's ongoing wave) in the| preparation of these results. The Company’s substantial generation capacities are tied up under medium to lo
Slide 50: Independent Auditor's Review Report on Consolidated Financial Results
INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF JSW ENERGY LIMITED 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of JSW ENERGY LIMITED (“the Parent”) and its subsidiaries (the Parent and
Slide 51: List of subsidiaries
i) JSW Renewable Energy (Vijayanagar) Limited j) JSW Renew Energy Limited k) JSW Renewable Energy (Dolvi) Limited l) JSW Renew Energy Two Limited m) JSW Neo Energy Limited n) JSW Renew Energy (Raj) Limited o) JSW Renew Energy (Kar) Limited p) JSW Energy Natural Resources Mauritius Limited q) JSW Ene
Slide 52: Auditor's report: unreviewed subsidiaries
7. The unaudited consolidated financial results include the interim financial information of 9 subsidiaries which have not been reviewed by their auditors, whose interim financial information reflects total revenue of Rs. 12.62 Crore and Rs. 41.00 Crore for the quarter and nine months ended December
Slide 53: Statement of Consolidated Unaudited Financial Results
Sw ENERGY LIMITED Registered Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai 400051 CIN: L74999MH1994PLC077041 Statement of Consolidated Unaudited Financial Results for the Quarter and Nine Months Ended December 31, 2021 @ crore Quarter Ended Nine Months Ended Year Ended i Particula
Slide 54: Notes to Consolidated Results
Notes: 1 The Group has considered the possible effects that may result from the pandemic retating to COVID-19 (including it's ongoing wave) in the preparation of these results. The Group's substantial generation and transmission capacities are tied up under medium to long term power purchase / job w
Slide 55: Press Release January 19, 2022
—_— JW energy Press Release January 19, 2022 Financial Results for the Quarter ended December 31, 2021 Mumbai, India: JSW Energy Limited (“JSW Energy” or the “Company”) today reported its results for the quarter (“Q3 FY22” or the “Quarter”) ended December 31, 2021. Key Highlights of Q3 FY22 (Consoli
Slide 56: Update on Growth Strategy
Update on Growth Strategy: e Renewable-led growth to reach 10 GW capacity by FY25 and 20 GW by FY30 e 2.5 GW under-construction in full-swing: expect commissioning from Q4 FY22 o SECI IX & SECI X 1.26 GW Wind projects: LT PPAs signed; phase-wise commissioning from Q1 FY23 o Group Captive 958 MW: LT
Slide 57: Consolidated Operational Performance
Consolidated Operational Performance: The net generation at various locations/plants is as follows: (Figures in Million Units) Location/ Plant Q3 FY22 Q3 FY21 Vijayanagar 800 557 Ratnagiri 1,235 1,686 Barmer 1,638 1,632 Nandyal 26 31 Himachal Pradesh (Hydro) 793 704 Solar 3 3 Total 4,496 4,612 Long
Slide 58: Plant PLF and Consolidated Financial Performance Review
= Ratnagiri: The plant operated at an average PLF of 51% (67%?) vis-a-vis 69% (78%?) in Q3 FY21 given maintenance activities, although partly offset by higher PPA tie-up = Barmer: The plant operated at an average PLF of 75% (81%?) vis-a-vis 76% (81%?) in Q3 FY21, mainly on account of flat long term
Slide 59: Consolidated Net Worth and Net Debt; Growth Strategy
The Consolidated Net Worth and Consolidated Net Debt as on Dec 31, 2021 were 16,082 Crore and %6,021 Crore respectively, resulting in a Net Debt to Equity ratio of 0.37x and Net Debt/TTM EBITDA of 1.74x. The Company’s balance sheet is one of the healthiest among its peers with a large headroom to pu
Slide 60: Operational portfolio mix and Business Environment
e JSW Energy’s current operational! portfolio comprises 30% renewable energy capacity. This is expected to pivot to ~70% renewable energy by FY25 and ~85% renewable energy by FY30. With one of the strongest balance sheets (Net Debt to Equity at 0.37x and Net Debt to EBITDA (TTM) at 1.74x) in the sec
Slide 61: Outlook
Outlook: e As per the World Bank’s latest publication “Global Economic Prospects” (January 2022) the global economy is expected to grow by 4.1% in CY22. The near-term outlook for global growth is somewhat weaker, with notably higher global inflation, higher food and energy prices, and supply disrupt
Slide 62: Power sector medium-term outlook
e Over the medium term, power sector outlook is healthy, as rapid urbanization and stabilization of various Govt. schemes are expected to boost overall power demand. At the COP26 summit, India announced its target to reach net zero by 2070, and a target of achieving 500 GW of non-fossil fuel energy
Slide 63: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements: Certain statements in this release concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements.