Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (August 2021)
40 slides from Jsw Energy's investor presentation, August 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: 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 3: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, August 2021 3
Slide 4: Comprehensive Covid-19 Relief & Response
Comprehensive Covid-19 Relief & Response 2,800+ workforce vaccinated via 24x7 Covid support helpdesk for 450+ beds provided in isolation drives conducted across locations employees and their families. centres created across locations Hospital beds and Covid Ambulance for village communities 40 Oxyge
Slide 5: 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 6: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 Actuals FY30 Targets Improvement Strategic 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 condenser tubes with gra
Slide 7: Sustainability: FY21 Performance
Sustainability: FY21 Performance Key Highlights Performance CO2 intensity (tCO2e/MWh) Scope 1 emissions ('000 • Steam turbine modernization in 300MW units at Vijayanagar tCO2e) Climate • Replacement of Condenser tubes with graphene coating at Vijayanagar 0.76 Change • Commissioned 1.06 MWp Solar Pla
Slide 8: Board and Governance
Board and Governance JSW Energy has a majority Independent Board (4/6 Directors are Independent) Name of Director Nature Name of Director Nature Chairman & Managing Mr. Sajjan Jindal Mr. Munesh Khanna Independent Director Director Joint Managing Director & Mr. Prashant Jain Ms. Rupa Devi Singh Indep
Slide 9: Empowering Our Communities
Empowering Our Communities Empowering communities with sustainable livelihoods CSR Footprint – JSW Energy Focus on Women Swachh Bharat Mission: Piped Drinking Installation of 371 Empowerment through Construction of ~150 individual, Water supply to solar street lights in Handloom Initiative community
Slide 10: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Figures are for Q1 FY22 JSW CARES assessment completed for 34 of 77 contractors at various locations Safety Meetings (Monthly) with contractors 18,000+ Safety Observations INFLUENCING POSITIVE SAFETY BEHAVIOR OF OUR WORKFORCE MySetu Software implemen
Slide 11: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, August 2021 11
Slide 12: JSW Group – Overview
JSW Group – Overview India’s leading integrated steel producer Power producer with 7 GW generation portfolio Installed crude steel capacity of 18 mtpa, (Hydro, Renewable and Thermal) growing to 30.5 mtpa 20 GW Target by FY32, driven by renewables Market Cap: ~USD 24.7 Bn Market Cap: ~USD
Slide 13: JSW Energy – Overview
JSW Energy – Overview Transforming to ~70% Renewable by FY25 and ~85% by FY30 4.6 GW 2.5 GW Installed Under-construction 30% Renewable 100% Renewable Renewable 20 GW (Hydro+Wind+Solar) Thermal Diversified Asset Portfolio (7 GW) Plant Capacity (MW) Segment 10 GW 16.8 Operational: Ratnagiri 1,200 Ther
Slide 14: Healthy Operations and Financials
Healthy Operations and Financials Business model resilient with steady cashflow generation 86% ~95% despite several sectoral headwinds Capacity under LT PPA EBITDA contribution from LT Net Generation (BUs) Total Income2 (` Crore) 20 BUs ` 2,004 Crore Net Generation Gross Cash Accruals1 22.1 21.3 9,5
Slide 15: Robust Balance Sheet
Robust Balance Sheet Large balance sheet headroom & strong cashflow 2.09x 0.41x available to pursue growth Net Debt/EBITDA Net Debt/Equity Net Worth Net Debt `Crore ↓ 30% YoY 8.05 % Decline in Receivables Wt. average cost of debt 15,939 Outstanding 14,507 11,822 11,646 10,050 8,945 Figures as of Jun
Slide 16: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, August 2021 16
Slide 17: JSW Energy - Investment Highlights
JSW Energy - Investment Highlights Proven Execution • Superior project execution skills: projects set-up in lowest cost & time Excellence • Sound operating efficiency: one of the lowest O&M costs per MW amongst IPPs • 86% of portfolio has LT PPAs with two-part tariff structure and almost full fuel c
Slide 18: Growth Strategy Pillars
Growth Strategy Pillars 1 2 3 4 Significant Market Opportunity Proven Project Execution Locked-in Growth Capital & Growth Roadmap & Operational Excellence Resources Available JSW Energy Investor Presentation, August 2021 18
Slide 19: Significant Market Opportunity: Power Demand Growth
1 Significant Market Opportunity: Power Demand Growth Historically, Power demand has grown at a CAGR of ~5% Similar growth expected over next decade +1,104 BU +130 GW 1,275 190 2,379 320 5% 6% FY02 5% FY21 CAGR CAGR (Actual) 5% CAGR (Actual) CAGR 1,275 190 FY21 FY32 (Actual) 523 78 (Expected) Base D
Slide 20: Significant Market Opportunity: Demand to be met by RE
1 Significant Market Opportunity: Demand to be met by RE As a signatory to the Paris Accord, India plans to achieve a Demand to be met incrementally with Renewable Energy low-carbon future 450 +356 GW Goals of India’s Intended Nationally Determined Contribution: In GW 5x • To reduce the emissions in
Slide 21: JSW Energy: Growth Roadmap to 20 GW
1 JSW Energy: Growth Roadmap to 20 GW Total Installed Capacity (GW) Thermal Renewable - Hydro 20.0 Renewable - Wind & Solar 15.2 10.0 5.2 4.6 1.4 1.6 1.6 3.2 3.2 3.2 FY21 FY25e FY30e Thermal 30% 70% 68% 32% 84% 16% Renewable Committed to delivering sustainable growth and strong shareholder returns G
Slide 22: 2.5 GW Renewables Under-construction
1 2.5 GW Renewables Under-construction Adding Under- Construction ~2 GW per year between FY25-30 Targeted Pipeline 0.0 2.5 GW 10.0 GW 3.0 GW ` 15,800 Cr capex for 2.5 GW under- 240 MW construction projects 958 MW 7.0 Commissioning Schedule (2.5 GW) 450 MW 6.8 GW 810 MW FY22 200+ MW 5.8 5.4 FY23 12
Slide 23: Progress Update: Renewable Projects
1 Progress Update: Renewable Projects Key Updates on 2.5 GW Under-construction projects: 810 MW SECI-IX: LT PPA signed for entire capacity PPA 958 MW Group Captive with JSW Steel : LT PPA signed for entire capacity 450 MW SECI-X: PPA to be signed in Q2 240 MW Kutehr Hydro Project: PPA under
Slide 24: JSW Energy: Growth Framework
1 JSW Energy: Growth Framework FY21 FY30e India’s Renewable 94 356 GW 450 Energy GW addition GW • JSW Energy plans to add 15 GW renewable Capacity capacity, which is ~4% of overall renewable additions • Applying stringent risk return criteria to target a niche segment of market that can offer health
Slide 25: Value Creation
1 Value Creation EBITDA Existing Portfolio (4.6 GW) generating healthy CF & returns1 of >15% ~5x • Steady operations and robust financials ~2.5x • Generating Gross Cash Accruals (GCA) of > `2,000 Crore p.a. ~`3,000-3,200 Cr • 86% of portfolio tied-up under Long Term PPA: 4.6 GW 10 GW 20 GW • Remaini
Slide 26: Proven Project Execution and Operational Excellence
2 Proven Project Execution and Operational Excellence Prudent and consistent capital allocation strategy for JSW Energy has one of the lowest project execution cost in growth over a 25 year history the industry Project Location Capacity Project cost 1st COD MW `Crore/MW $mn/MW2 Year Business model r
Slide 27: Project Execution: Life-cycle Approach towards Renewable (1/2)
2 Project Execution: Life-cycle Approach towards Renewable (1/2) Project Selection Philosophy Project Construction and Land Power Evacuation Acquisition • Stringent risk return metrics • De-scoping of EPC packages to have • Strategic selection of ISTS substations competitive edge for connectivity wi
Slide 28: Project Execution: Life-cycle Approach towards Renewable (2/2)
2 Project Execution: Life-cycle Approach towards Renewable (2/2) Quality Supplier & Vendors O&M Control • Robust selection process through • Dedicated team for quality • Skilled in-house O&M team competitive route; Award of assurance packages to best-in-class / Tier-I • Continuous implementation of
Slide 29: Locked-in Resources
3 Locked-in Resources Systematic approach of deploying in-house experienced land acquisition team in all resource-rich states Deployed experienced legal teams for title search and execution of lease deeds; dedicated team for securing RoW Acquired/ Locked-in sites in resource rich states, along
Slide 30: Growth Capital Available
4 Growth Capital Available Significant investments required in renewable JSW Energy has sufficient balance sheet headroom & energy industry strong cashflow to pursue growth to 20 GW by FY30 450 • Sources for Growth Capital Available: FY21 • Balance Sheet Strength (current gearing ~0.43x) (Actual) •
Slide 31: JSW & FFI to collaborate on Green Hydrogen
JSW & FFI to collaborate on Green Hydrogen India’s Hydrogen Potential Spearheading development of Green Hydrogen in a bid to decarbonize the economy Significant H2 demand H2 Expected to grow to ~24 MMT by 2050; can spur USD 65-70 Bn investments in incremental RE capacity National Hydrogen Mission •
Slide 32: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, August 2021 32
Slide 33: JSW Energy – Portfolio Growth with Renewables
JSW Energy – Portfolio Growth with Renewables 4.6 GW 2.5 GW Barmer: 1,080MW Installed Under- Baspa II: 300MW & Karcham Wangtoo: 1,091MW 4 • Configuration: 8 X 135MW 30% Renewable Construction • Configuration: 3x100MW (Baspa II) ; 4x272.75MW • Units operating: since 20093 70% Thermal 100% Renewable (
Slide 34: Awards & Recognitions - FY21
Awards & Recognitions - FY21 • National Energy Conservation Award-2020 by Ministry of Power • Rajasthan Energy Conservation Award-2020 • Achieved Five-star grading in the British Safety Council’s Occupational Health and Safety Audit Barmer • Awarded ‘National Efficiency Awards 2021’ for Best Energy
Slide 35: Trade Receivables
Trade Receivables Consolidated Trade Receivables* (` Crore ) • Receivables decline 30% YoY in Q1 FY22 o YoY: Q1 FY21 was impacted by Covid related delays from customers o QoQ: Impact due to seasonality in Hydro generation as 4000 well as Covid related delays due to second wave of 3500 covid in Q1 30
Slide 36: India - Power Demand
India - Power Demand Power Demand Growth YoY • All India Peak Power Demand hit an all time high of +38.2% ~201 GW in July’21 +40.0% +30.0% • Earlier, in Jun’21, Jan’21 and Dec’20, peak +22.0% demand had reached all time highs of ~197 GW, +20.0% +13.1% ~186 GW and ~183 GW respectively +11.1% +4.5% +8
Slide 37: India - Power Generation
India - Power Generation Power Generation Growth YoY Segment-wise Share in Generation Total +38.5% Generation 1,376 1,389 1,382 316 368 +40.0% (BU) 3.1% 3.8% 3.7% 4.3% 3.5% +30.0% +22.5% 9.2% 10.0% 10.6% 11.4% 12.1% +20.0% 9.8% 11.2% +11.2% +5.5% 10.9% 9.8% +7.5% 13.0% +10.0% +7.2% +3.5% +5.1% +4.8%
Slide 38: India - Installed Capacity (1/2)
India - Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity State, 97.0 GW Central, RE, 96.8 GW 25.2% 27.0% 96.8 GW +2,522 MW * 25.2% -670 MW* +6 MW 384.1 GW 384.1 GW Hydro, Thermal 46.3 GW 234.1 GW 12.1% , 60.9% +113 MW* -670 MW ** Private, 47.7% Nuclear, 1.8% 6.
Slide 39: India - Installed Capacity (2/2)
India - Installed Capacity (2/2) Overall Segment-wise Net Capacity Addition (GW) RE Segment-wise Net Capacity Addition (GW) 14.0 12.1 0.3 9.4 12.0 8.6 0.1 0.9 0.5 0.5 7.4 1.6 2.1 0.4 9.4 7.4 1.6 8.6 2.0 2.0 4.3 4.1 0.1 6.5 6.4 2.5 1.6 5.5 0.6 - 3.4 2.5 0.2 0.4 0.1 2.3 (0.7) 0.5 FY19 FY20 FY21 Q1 FY2
Slide 40: Investor Relations Contact
August, 2020 Investor Relations Contact: ir.jswenergy@jsw.in