Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (May 2016)
31 slides from Jsw Energy's investor presentation, May 2016
Slide 1: JSW Energy Limited Investor Presentation May 2016
JSW Energy Limited Investor Presentation May 2016
Slide 2: Agenda
Agenda Overview Value Proposition Business Appendix Environment 2
Slide 3: JSW Group – overview
JSW Group – overview USD 11 billion group with presence across the core sectors JSW Steel*: India’s leading integrated steel JSW Energy*: Engaged across the value producer (Steel making capacity: 18MTPA) chain of power business (Operational plants’ capacity: 4,531 MW) JSW Infrastructure: Engaged in
Slide 4: JSW Energy – Presence across the value chain
JSW Energy – Presence across the value chain Currently operational Operational transmission line – JV with capacity: 4,531MW Power MSETCL: two 400KV transmission lines Power generation transmission JV with Toshiba, Japan for Equipment Rajasthan (lignite): Kapurdi manufacturing of super- Mini
Slide 5: Established energy company with 4,531 MW operational capacity
Established energy company with 4,531 MW operational capacity Baspa II (300MW) & Karcham Wangtoo (1,091MW) Units operating: Baspa II since 2003 and Karcham Wangtoo since 2012 Barmer: 1,080MW Technology & Fuel Source: Hydro Power Offtake: Long Term PPA and Merchant Configuration: 8 X 135MW
Slide 6: Proven track record
Proven track record FY12 FY16 Capacity (MW) 2,600 4,531 CAGR FY12–16: 15% Net Generation (MUs) 13,594 22,064 CAGR FY12–16: 13% Total Revenue INR 62,654mn / $1,044mn INR 101,790mn / $1,696mn CAGR FY12–16: 13% EBITDA INR 15,944mn/ $266mn INR 43,546mn/ $726mn CAGR FY12–16: 29% CAGR FY12–16: 6
Slide 7: Corporate strategy
Corporate strategy Efficient capital allocation for organic growth Selective Pursue selective inorganic growth opportunities which will enhance cash flows and be Growth RoE accretive Diversification of Fuel Mix and Off- Increasing proportion of Long Term PPAs – goal to reach over 85% of total
Slide 8: Sound Corporate Governance
Sound Corporate Governance Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, Audit Committee compliance with regulations by the Company and its subsidiaries Comprises of five Non-Executive Directors Identifies qualified persons and recommends
Slide 9: Agenda
Agenda Overview Value Proposition Business Appendix Environment 9
Slide 10: Value proposition
Value proposition 1 Efficient Capital Allocation and Execution Capabilities 2 Portfolio of Efficient Operating Assets 3 Diversified Fuel Tie-up 4 Balanced Mix of Off-take Arrangements 5 Robust Financial Profile 10
Slide 11: Efficient Capital Allocation and Execution Capabilities
1 Efficient Capital Allocation and Execution Capabilities Project cost of some the power plants set up by other players in the industry Power project Capacity Project cost 1st COD MW ` crore/MW $mn/MW Year Lanco (Amarkantak) 600 5.23 0.87 2009 Lanco (Udupi) 1,200 4.67 0.78 2010 Aryan Coal (Kasaipall
Slide 12: Portfolio of Efficient Operating Assets
2 Portfolio of Efficient Operating Assets JSW Energy Standalone PLF 4 JSW Energy Stand alone4 All India private sector thermal power plants' PLF* 93% Among the best run thermal power plants in 81% 81% 83% 84% India on a consistent basis 70% 64% 62% 61% 61% Vijayanagar plant has been consistently
Slide 13: Diversified Fuel Tie-up and balanced Mix of Off-take Arrangements
Diversified Fuel Tie-up and balanced Mix of Off- 3 4 take Arrangements Fuel sources – Power off-take arrangements – optimal mix of long term o Thermal coal contracts & merchant power sales (return optimisation) …. o Lignite, and Short term: o Hydro 41% Ability to capitalise on better 34% realisati
Slide 14: Robust Financial Profile
5 Robust Financial Profile FY15 EBITDA Margin (%1) FY15 Return on Capital Employed (%2) 17.98% 67.80% 10.59% 40.10% 40.05% 9.29% 7.96% 7.85% 30.74% 6.38% 26.04% 23.69% 21.15% 4.57% JSW Energy JPVL R Power Adani Power CESC NTPC Tata Power JSW Energy CESC Tata Power Adani Power NTPC JPVL R Power (Stan
Slide 15: Robust Financial Profile
5 Robust Financial Profile FY15 Net Debt/Equity (x) FY15 Net Debt/EBITDA (x) 7.60 10.81 10.95 4.89 7.16 5.35 3.14 4.40 1.51 2.45 1.97 1.01 1.05 0.50 JSW Energy CESC NTPC R Power Tata Power JPVL Adani Power JSW Energy CESC NTPC Tata Power Adani Power R Power JPVL (Standalone) (Standalone) Free cash
Slide 16: Well poised to capitalise on improving sector fundamentals
Well poised to capitalise on improving sector fundamentals JSW Energy’s Advantage / Approach Increase share of long term PPAs to over 85% Stability of cash flows takes Regulated sector precedence over growth Leverage low fixed cost advantage for upcoming Case 1 Bids Put on-hold growth projects
Slide 17: Agenda
Agenda Overview Value Proposition Business Appendix Environment 17
Slide 18: Capacity profile and PLF’s
Capacity profile and PLF’s Sector-wise Installed Capacity – 298 GW Mode-wise Installed Capacity (as on Mar 31, 2016) (as on Mar 31, 2016) +3,045 MW* +3,776 MW* +6,682 MW* RES +21,777 MW* Central 13% State +1,516 MW* 26% Hydro 34% 14% Nuclear Private Thermal 2% +15,880 MW* 40% 71% 60% of the capaci
Slide 19: Demand-supply scenario
Demand-supply scenario Power Demand Supply Position Q4 FY16 (BU) Peak Demand and Peak Met FY16 (GW) 9.0% 120 11.0% 277 272 140 7.0% 7.1% 153 100 148 9.0% 120 4.7% 5.0% 7.0% 80 100 3.0% 5.0% 0.9% 1.0% 88 88 80 60 1.5% 0.9% 3.0% 1.4% 78 76 76 1.0% 74 1.7% 3.2% 54 60 51 1.0% 49 48 40 0.1% -1.0% 40 40 4
Slide 20: Indian economy and thermal coal prices
Indian economy and thermal coal prices Industrial Production growth improved in Feb-2016 Thermal coal prices inched up, while INR after three consecutive months of negative growth. depreciated slightly during Q4 FY16 Almost all the sectors improved meaningfully. Indexed API 4 Coal (monthly avg.)
Slide 21: Agenda
Agenda Overview Value Proposition Business Appendix Environment 21
Slide 22: Strong financial track record
Strong financial track record Total Revenue (Rs. mn) EBITDA (Rs. mn, RHS) Net Debt (Rs. mn) Net Debt to Equity 43,546 1,20,000 1,60,000 38,535 2.40 34,536 40,000 1,50,978 1,00,000 2.00 1,01,790 1,20,000 1.60 91,477 96,103 32,000 1.52 80,000 89,076 1.36 1.77 1.60 60,000 30,066 24,000 80,000 94,049 1.
Slide 23: Power generation
Power generation Q4 plant-wise net generation Annual plant-wise net generation 56% 10% 0.4% 2% -8% -2% 2,078 7,646 6,943 6,809 1,734 1,727 1,676 6,556 6,396 1,639 6,259 1,333 1,551 357 Ratnagiri Vijayanagar Barmer Hydro^ Ratnagiri Vijayanagar Barmer Hydro^ Q4 FY15 Q4 FY16 FY15 FY16 PLF (%) Q4 FY15 Q
Slide 24: Power sales break-up
Power sales break-up Q4 power sales break-up Annual power sales break-up 24% 5% 9,302 10,175 2, 770 44% 47% 47% 2,165 46% 3,075 11,603 11,677 53% 56% 53% 2,533 54% Q4 FY15 Q4 FY16^ FY15 FY16^ Long term Short term Long term Short term Q4 FY15 Q4 FY16^ FY15 FY16^ Average Realization (`/kwh)# 4.37 4.24
Slide 25: Consolidated financial results
Consolidated financial results ` Crore Q4 FY15 Q4 FY16^ Particulars FY15 FY16^ 2,219 2,706 Turnover 9,610 10,179 921 1,162 EBITDA 3,854 4,355 41% 43% EBITDA Margin(%) 40% 43% 271 439 Interest 1,137 1,503 196 263 Depreciation 790 950 - - Exceptional gain(+) / loss(-) (34) 150 453 461 Profit Before Ta
Slide 26: Consolidated financial results
Consolidated financial results USD mn Q4 FY15 Q4 FY16^ Particulars FY15 FY16^ 335 408 Turnover 1,449 1,535 139 175 EBITDA 581 657 42% 46% EBITDA Margin(%) 40% 43% 41 66 Interest 171 227 30 40 Depreciation 119 143 - - Exceptional gain(+) / loss(-) -5 23 68 69 Profit Before Tax 285 309 49 46 Profit af
Slide 27: Consolidated financial highlights
Consolidated financial highlights Particulars Dec 31, 2015 Mar 31, 2016 `Crores USD mn `Crores USD mn Net Worth 8,615 1,299 8,536 1,287 Net Debt 15,506 2,338 15,098 2,276 Net Fixed Assets* 22,576 3,404 22,410 3,378 Net Debt to Equity Ratio (x) 1.80 1.77 Weighted average cost of debt 10.35% 10.35% US
Slide 28: Status update
Status update Lignite mining at Jalipa mine lease transferred to the Joint Venture Company (BLMCL) and mining Barmer (BLMCL) operations (overburden removal) have commenced All clearances in place Kutehr hydro project Awarded Letter of Intent (LOI) to the EPC contractor (240 MW) Project cost
Slide 29: Opportunity for organic growth
Opportunity for organic growth Chhattisgarh: 1,320 MW Land Available Water Available EC Available Kutehr: 240 MW* Land Available Water Available EC Available Ratnagiri: 3200 MW Vijayanagar: 660 MW* Land Available Land Available Water Available Water Available EC Available EC Pending Ratnagiri and Ch
Slide 30: 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 31: Thank you
Thank you 31