Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (November 2021)
42 slides from Jsw Energy's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 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, November 2021 3
Slide 4: 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 5: 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 6: 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 7: ESG Performance amongst the best in the sector
ESG Performance amongst the best in the sector Board & Governance Air Emissions Water & Waste Management % Board Independent CO2 Intensity (t CO2e/MWh) Specific Fresh Water Consumption (m3/MWh) 67 0.84 56 50 50 50 0.68 0.69 3.3 44 40 2.9 0.36 1.21 JSW Peer 2 Peer 1 Peer 4 Peer 5 Peer 6 Peer 3 Peer 2
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 Regular water supply through water pipelines & hand Scaling Community Orchards, Integrated & Progressive Working with 500+ women across 16+ Gram Panchayats for pumps in Barmer, Rajasthan Farming, Vegetable Production, Dai
Slide 10: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Figures are for Q2 FY21 Zero Severe/Major Injuries 70% of all contractors covered by JSW CARES assessment 40,000+ Cumulative Safety Observations INFLUENCING POSITIVE SAFETY BEHAVIOR OF OUR WORKFORCE Fire Safety refresher training completed at all loc
Slide 11: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, November 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 2030, driven by renewables Market Cap: ~USD 21.5 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 2.01x 0.41x available to pursue growth Net Debt/EBITDA Net Debt/Equity Net Worth Net Debt `Crore ↓ 19% YoY 8.04 % Decline in Receivables Wt. average cost of debt 15,789 Outstanding 14,507 11,822 11,646 10,050 8,945 Figures as of Sep
Slide 16: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, November 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, November 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 India plans to achieve a low-carbon future, and be Carbon Demand to be met incrementally with Renewable Energy Neutral by 2070 India made 5 commitments at the COP26 summit: 450 +356 GW • To increase its non-fossil energy capacity to 500 GW In
Slide 21: JSW Energy: Growth Roadmap to 20 GW
1 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 15.5 • Battery Energy Storage & Solar 10 5.5 4.6 1.4 1.6 1.6 3.2 3.2 3.2 FY21 FY25e FY30e Thermal 16% Renewabl
Slide 22: Renewable Energy Projects
1 Renewable Energy Projects 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: ~`1,250 Crore Commissioning: progressively from
Slide 23: 225 MW Solar Plant Under-construction in Karnataka
1 225 MW Solar Plant Under-construction in Karnataka Group Captive: 225 MW Solar Power Plant Under-construction in Karnataka Targeted Commissioning from Q4 FY22 JSW Energy Investor Presentation, November 2021 23
Slide 24: 1.26 GW Wind SECI IX & X Under-construction in Tamil Nadu
1 1.26 GW Wind SECI IX & X Under-construction in Tamil Nadu Construction commenced for dedicated transmission lines and sub-station Targeted Commissioning from Q1 FY23 JSW Energy Investor Presentation, November 2021 24
Slide 25: 240 MW Kutehr HEP Under-construction in Himachal Pradesh
1 240 MW Kutehr HEP Under-construction in Himachal Pradesh Completed 10 km tunneling, achieving half the distance ahead of timelines Targeted Commissioning by Sept 2024 JSW Energy Investor Presentation, November 2021 25
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 ~0.41x) (Actual) •
Slide 33: Agenda
Agenda Sustainability Overview Key Investment Highlights Appendix JSW Energy Investor Presentation, November 2021 33
Slide 34: 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 35: 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 36: Trade Receivables
Trade Receivables • Receivables decline 19% YoY in Q2 FY22 • Q2 FY21 was impacted by Covid related delays Consolidated Trade Receivables* (` Crore ) from customers • All plants placed favourably in States’ Merit Order 4000 Dispatch 3500 o Further, Hydro plants under ‘Must-run status’ with 3000 no sc
Slide 37: Power Demand
Power Demand • Power demand in H1 FY22 saw a strong increase of 13.0% YoY Power Demand Growth YoY +38.2% • A strong pickup in economic activity coupled with +40.0% a low base effect. +30.0% +22.0% • In H1 FY21 demand had declined by 8.7% YoY +17.4% when Covid-19 led restrictions/lockdowns were +20.0
Slide 38: Power Generation
Power Generation Power Generation Growth YoY Segment-wise Share in Generation Total +38.5% Generation 1,376 1,389 1,382 678 764 +40.0% (BU) 3.1% 3.8% 3.7% 4.3% 3.6% +30.0% +22.5% 9.2% 10.0% 10.6% 12.1% 11.6% +20.0% +16.0% 9.8% +11.1% +11.2% +5.5% 11.2% 10.9% 12.2% +7.5% +8.2% 14.3% +10.0% +3.5% +5.1
Slide 39: Installed Capacity (1/2)
Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity 101.5 GW Central, State, 103.7 GW +4,577 MW* RE, 97.6 GW 26.7% 26.1% 25.1% -163 MW* +800 MW* 388.8 GW 388.8 GW 46.5 GW Thermal 234.0 GW Hydro, +190 MW* , 60.2% -670 MW* 12.0% Private, 48.2% Nuclear, 1.8% 6.8 GW 1
Slide 40: Installed Capacity (2/2)
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 0.5 0.9 0.5 7.4 7.1 1.6 2.1 0.4 9.4 6.7 0.3 7.4 1.6 0.6 8.6 0.3 2.9 7.1 4.3 4.1 6.5 6.4 2.2 6.2 5.5 3.4 2.2 0.7 0.1 (0.7) 0.5 FY19 FY20 FY21 H1 FY21 H1 F
Slide 41: Merchant Market Snapshot
Merchant Market Snapshot Monthly Average Merchant Tariff (Rs/unit) 11.00 • Monthly Merchant Prices averaged at Rs 8.7/unit in 10.00 October’211 – Highest in the last decade 9.00 8.00 • Primarily driven by high demand, constraints in domestic 7.00 coal supply and rise in imported coal prices globally
Slide 42: Investor Relations Contact
August, 2020 Investor Relations Contact: ir.jswenergy@jsw.in