Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q4 FY23 Earnings Presentation
63 slides from Jsw Energy's earnings presentation, May 23, 2023
Slide 1: Q4 and FY23 Results Presentation
Q4 and FY23 Results Presentation May 23, 2023
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: FY2023 – A Year of Delivering Promises
FY2023 – A Year of Delivering Promises Operating Capacity Enhanced by 44% (~2GW) in FY23 2nd highest Operating EBITDA and Adjusted PAT ever Won the largest single location BESS project of 1GWh Won Hydro Pump Storage project of 2.4GWh Contracted India’s largest commercial scale Green H2 Backward Inte
Slide 4: Delivering Sustainable Growth – Resilient Business Model
Delivering Sustainable Growth – Resilient Business Model 2 GW of Renewable Led Capacity Addition in FY23 (GW) 44% 6,564 6,615 4,531 4,541 4,559 4,559 4,559 Increased capacity by ~2GW (44%) YoY 1,730 FY10 FY18 FY19 FY20 FY21 FY22 FY23 Current 2nd highest operating EBITDA and adjusted PAT ever 2nd Hig
Slide 5: Acquired 1,753 MW of Mytrah RE Assets
Acquired 1,753 MW of Mytrah RE Assets JSW Energy Completed the Acquisition of RE Portfolio of Mytrah Energy Largest acquisition by the Company. 1,753 MW comprises of 1,331 MW of wind capacity and 422 MW (487 MWp DC) of solar • Acquisition of 15 SPVs and 13 ancillary SPVs having 1,449MW of total inst
Slide 6: Asset Optimisation & Performance Improvement Plan underway
Asset Optimisation & Performance Improvement Plan underway Generation Improvement O&M Optimisation Wind Solar O&M Action Plan Action Plan Action Plan • Improve Machine Availability (MA) • DC Capacity augmentation (38 MW) • Self O&M team • Restoration of WTGs to add ~20 MU’s • Resource management • F
Slide 7: Normalised EBITDA will be achieved ahead of articulated time
Normalised EBITDA will be achieved ahead of articulated time Particulars in ₹ Cr 1,187 Focused interventions driving encouraging initial response Wind Solar • Total 109 WTG’s restored since April-23, remaining 25 WTGs to • Solar Trackers availability and better spare management be restored by June-2
Slide 8: Attractive Refinancing driving Finance Cost Saving of > ₹240 Cr p.a.
Attractive Refinancing driving Finance Cost Saving of > ₹ 240 Cr p.a. Benchmarked Refinancing Package in place at the time of Consummation of Deal Delivering significant value immediately upon acquisition Interest cost Maturity life to savings of more match the useful Payment to Restoration Co-oblig
Slide 9: Mytrah – Underlying Normalised Net Debt/EBITDA at 5.2x
Mytrah – Underlying Normalised Net Debt/EBITDA at 5.2x Pre-Acquisition FY 23 Normalised EBITDA ₹1,237 Cr ₹1,187 Cr ₹1,650 Cr Net Debt/EBITDA 7.7x 7.2x 5.2x JSW Energy Q4 FY23 Results Presentation 9
Slide 10: Receivables Cycle Improving – Focused Collection Efficiency in Play
Receivables Cycle Improving – Focused Collection Efficiency in Play Strong collection in Mytrah Portfolio’s Receivables underway Particulars in ₹ Cr Monthly Collection consistently above the billing, JSW’s strong collection efficiency in play leading to lower receivables 223% • Monthly collection ra
Slide 11: Post Merger Integration – Progressing on track
Post Merger Integration – Progressing on track People Safety & Sustainability SAP and IDCC • 102 employees on-boarded • JSW’s HSE & Sustainability • SAP Integration Completed; IT Systems • Additional 20% lateral hires and standards rolled out Upgradation underway internal transfers to drive integrat
Slide 12: Ind-Barath 700 MW – Revival On Track – Commissioning in FY24
Ind-Barath 700 MW – Revival On Track – Commissioning in FY24 Status and Plan Mechanical Works Unit 1 • Turbine-Generator coupling run out and free run out completed • 11 kV Line Supply for Construction Works and readings are within limit • Turbine, generator, boilers & auxiliaries to finish in Sep-2
Slide 13: Energy Storage – Unique Value Proposition as an Early Mover
Energy Storage – Unique Value Proposition as an Early Mover Battery Energy Storage System (BESS) Hydro Pump Storage (PSP) • Received LoI for 2.4GWh (300 MW x 8 hours) PSP from Power LoA received for 500MW/1000 MWh SECI project in Jan-23 Company of Karnataka Ltd (PCKL) • Build Own Operate Transfer (B
Slide 14: Green Hydrogen Opportunity – JSW Energy’s Unique Positioning
Green Hydrogen Opportunity – JSW Energy’s Unique Positioning G R E E N H2 RTC RE Power at Monetization of Co-location with Project Mutually competitive Scalability byproducts Offtaker Experience Beneficial prices • Power is ~65-70% of • Valorization of • JSWEL’s backward • Co-location of • Ability t
Slide 15: Contracted India’s Largest Commercial Scale Green Hydrogen Project
Contracted India’s Largest Commercial Scale Green Hydrogen Project India’s First Plant to Produce Green Hydrogen for Production of Green Steel India’s largest Commercial Scale Plant H2 & O2 Green H2 Green Power 3,800 TPA 25 MW RTC power Surety of Offtake Secured land for plant Cost plus Offtake Gree
Slide 16: Solar Module Manufacturing – Supply Chain De-risking
Solar Module Manufacturing – Supply Chain De-risking NEED FOR BACKWARD INTEGRATION BACKWARD INTEGRATION AT JSW ENERGY Solar power is critical to transition towards green power Allocated 1 GW of capacity under PLI for W-C-M Tariff policy (BCD) restrictive, leading to high landed cost of Supply Chain
Slide 17: 2030 Road Map for Integrated and Sustainable Growth
Vijayanagar Solar Power Plant Company Overview 2030 Road Map for Integrated and Sustainable Growth 17
Slide 18: In 2021 – we crafted our Growth road map till 2030 under Strategy 1.0
In 2021 – we crafted our Growth road map till 2030 under Strategy 1.0 Strategy 1.0 – Focus on Generation only Financial Projections in 2021 20.0 EBITDA ~5x 20% CAGR ~2.5x 4x (FY21-30) ~ ₹3,000-3,200 Cr 2x 10.0 4.6 GW 10 GW 20 GW (Current) PAT 4.6 22% CAGR ~6x (FY21-30) ~3x ~ ₹800 Cr FY21 FY25e FY 30
Slide 19: Robust Delivery - Outperformed and Broad-Based our 2025 Milestone
Robust Delivery - Outperformed and Broad-Based our 2025 Milestone Well placed to achieve 10 GW of generation capacity ahead of stated timeline of 2025 with foray into New Age Businesses Power Generation Energy Storage Energy Products & Services 9.8 GW Installed Capacity by CY24 3.4 GWh of locked in
Slide 20: Well Diversified Portfolio – Focused on Maximising Cash Returns
Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Open Capacity, Group Captive, Generation 9,770 MW 15% 22% Installed Current Exposure to Under-construction Others, 7% Group Captive - 6,615 MW 21% 3,155 MW Thermal 3,158 MW HP, 3% Wind 2,215 MW 3
Slide 21: Developed a Pan India Footprint of Operating Locations
Developed a Pan India Footprint of Operating Locations Installed Capacity by Location (6,615 MW) Punjab Himachal Pradesh JSW Energy Solar: 50 MW Hydro: 1391 MW Mytrah Energy Rajasthan Madhya Pradesh Wind: 30 MW Wind: 258 MW Thermal: 1080 MW Gujarat Telangana Wind: 78 MW 101 MW Wind: Solar: 327 MW Ma
Slide 22: 25% CAGR growth in Installed Generation Capacity by 2024 + 1 GWh BESS
25% CAGR growth in Installed Generation Capacity by 2024 + 1 GWh BESS Under Construction 3.2 GW, to be Commissioned by CY24 Under-Construction 0.3 9.8 0.7 0.2 0.7 0.8 0.4 6.6 4.6 20% CAGR 25% CAGR FY21 Current SECI - X SECI- IX Group Captive Kutehr Ind Barath SECI- XII Operational by Operational Win
Slide 23: Opportunity to Accelerate Growth – Proven Execution Capability
Opportunity to Accelerate Growth – Proven Execution Capability Enhanced Value creation Opportunities JSW Energy Edge India requires ~ 40 RE+ Storage to plug Delivering Promises- GW of RE capacity increasing Peak Reached 10 GW ahead Demand-Supply Gap of the stated timelines addition per year Largest
Slide 24: Revising 2030 Guidance under Strategy 2.0 (2023-2030)
Revising 2030 Guidance under Strategy 2.0 (2023-2030) Strategy 2.0 H2 ELECTRONS TO MOLECULES Green Hydrogen Production Forward integration of & downstream derivatives RE generation ENERGY STORAGE : Large Portfolio of Resources Pump Hydro Storage Battery Energy Storage GENERATION CAPACITY Locked in S
Slide 25: Strategy 2.0 – 20 GW Generation + 40 GWh of Storage by FY30
Strategy 2.0 – 20 GW Generation + 40 GWh of Storage by FY30 Capacity 20 Pillars for Self sustainable and Integrated road map 3.0x 40GWh/5GW Energy Storage by FY30 • Sustainable value creation focused on Cash Returns 6.6 1GW Solar Module Manufacturing Apr-25 • Internal Accruals and BS Headroom (no ex
Slide 26: Revised Guidance 2.0 (2023-2030) – No Equity Dilution Needed
Revised Guidance 2.0 (2023-2030) – No Equity Dilution Needed Growth to be driven by internal accruals Net Debt/EBITDA <4.5x <4.0x 3.5x-4.0x Targets FY30 Strategy 1.0 (2021) Strategy 2.0 (2023) Generation Capacity 20 GW 20 GW 2x Energy Storage ------ 40 GWh/ 5GW Solar Module ------ 1 GW module W-C-M
Slide 27: Agenda
Agenda Q4FY23 Highlights Operational & Financial Performance Safety & Sustainability Business Environment Appendix JSW Energy Q4 FY23 Results Presentation Vijayanagar 225MW Solar Power Plant 27
Slide 28: Q4 FY23 Highlights (1/3)
Q4 FY23 Highlights (1/3) • Overall Net Generation: Up by 16% YoY at 5.1 BUs on back of strong merchant volumes and RE capacity addition Operational • Net Renewable Generation: Up by 32% YoY aided by commissioning of Vijayanagar solar power Performance plant • Net Long Term Generation: Up by 7% YoY a
Slide 29: Q4 FY23 Highlights (2/3)
Q4 FY23 Highlights (2/3) Under • 1.26 GW SECI IX & X Wind projects : Progressive commissioning of SECI X project under progress with construction – part CoD for 78 MW as of Apr’23; WTG foundation and balance of plant works in-progress for SECI IX Generation Projects • 240 MW Kutehr HEP: Project well
Slide 30: Q4 FY23 Highlights (3/3)
Q4 FY23 Highlights (3/3) • Mytrah RE assets o Completed the acquisition of 1,753 MW of renewable assets from Mytrah Energy (India) Private Limited at an Enterprise Value of ₹10,150 Cr, after adjusting for net current assets and Update on other adjustments under the SPAs (Share Purchase Agreements) A
Slide 31: Operational & Financial Performance
Operational & Financial Performance Barmer TPP 1,080 MW
Slide 32: Consolidated Performance
Consolidated Performance Net Generation (MUs) Total Revenue* (₹ Cr) Operational Highlights 5% • Total Net Generation: +16% YoY in Q4 FY23 at 5.1 16% 6% 24% BUs due to strong merchant volumes and RE 5,067 20,787 21,866 4,363 2,806 10,867 capacity addition. +5% YoY in FY23 at 21.9 BUs on 2,655 Short 8
Slide 33: Thermal Assets| Q4 FY23 Highlights (1/2)
Thermal Assets| Q4 FY23 Highlights (1/2) Total Thermal Assets Operational Assets - 3,158* MW Under Construction Total Thermal Capacity 3,858 MW Ratnagiri Barmer Vijayanagar Ind - Barath Operational Capacity Installed Capacity 1,200 MW 1,080 MW 860 MW 700 MW 3,158 MW PPA tied 1,095MW 1,080 MW 338 MW
Slide 34: Thermal Assets| Q4 FY23 Highlights (2/2)
Thermal Assets| Q4 FY23 Highlights (2/2) Net Generation (MUs) Thermal : PLF – long term 14% 4% 94% Operational Highlights 4,482 85% 3,920 15,251 15,819 63% 79% 69% 72% 68% • Total Net Generation +14% YoY at 4.5 BUs, as 60% Short merchant volumes soar ~3x in the quarter. Term (94%) (86%) (94%) (89%)
Slide 35: 4.3x Capacity Growth in Renewables
4.3x Capacity Growth in Renewables JSW Neo 5,902 MW Operational Assets * – 3,447 MW Under Construction – 2,455 MW Expected to be operational by CY 2024 3,624 MW (incl. Mytrah Assets: Wind 1,331 MW) WIND WIND HYDRO Hydro 1,631 MW SOLAR SECI IX (810) SECI X (372) HYDRO Karcham Mytrah Wind Captive JSW
Slide 36: Green Assets| FY23 Highlights
Green Assets| FY23 Highlights Installed Green Capacity 1 (MW) Net Generation (MUs) Operational Highlights FY23 3,396 9% • Capacity addition of ~2 GW in the year 6,047 • Net generation +9% YoY to 6 BUs driven 2.4x Long by capacity additions and steady Term Short generation at hydro plants 1,391 5,535
Slide 37: Consolidated Financial Results
Consolidated Financial Results FY23 FY22 Particulars in ₹ Crore Q4 FY23 Q4 FY22 10,867 8,736 Total Revenue 1 2,806 2,655 3,817 4,138 EBITDA 881 1346 35% 47% EBITDA Margin(%) 31% 51% 3,817 3,542 EBITDA (Adjusted) 2 881 821 35% 44% EBITDA Margin(%) (Adjusted) 2 31% 39% 844 777 Finance Cost 233 100 844
Slide 38: EBITDA Bridge
EBITDA Bridge Particulars in ₹ Cr Q4 1,346 True-up 524 822 822 Reported EBITDA incl. true-up FY23 4,138 True- up 596 3,542 3,542 Reported EBITDA incl. true-up JSW Energy Q4 FY23 Results Presentation * Adjusted for true-up order impact of Karcham-Wangtoo subject to consolidation adjustments 38
Slide 39: Net Debt Movement (Proforma | Incl. Mytrah Debt)
Net Debt Movement (Proforma | Incl. Mytrah Debt) Particulars in ₹ Cr Leverage Net Debt (₹ Cr) EBITDA (₹ Cr) ND/EBITDA (x) Under-Construction Operating (Excl. Mytrah) 9,990 3,817 2.6x Mytrah Mytrah (Normalised EBITDA) 8,576 1,650 5.2x Combined (Excl. Under construction) 18,566 5,467 3.4x Operational
Slide 40: Superior Financial Risk Profile (Proforma | Incl. Mytrah Debt)
Superior Financial Risk Profile (Proforma | Incl. Mytrah Debt) Net Debt (₹ Cr) Net Worth (₹ Cr)* & Cash Returns (%) 22,180 17,415 17,593 18,392 18,629 16,082 16,638 21% 21% 19% 20% 18% 9,840 18% 7,720 7,874 11,830 12,688 12,952 13,491 13,446 14,177 6,021 6,963 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-
Slide 41: Healthy Trade Receivables (Excl. Mytrah)
Healthy Trade Receivables (Excl. Mytrah) Consolidated Trade Receivables* (₹ Cr ) • Receivables days in Q4 FY23 at 60 days down on YoY basis from 63 days o Receivables (in ₹ Cr) increase YoY due to higher fuel costs. 1,979 • All plants placed favourably in States’ Merit Order Dispatch. True up impact
Slide 42: Sustainability
Sustainability Baspa Reservoir
Slide 43: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Health & Safety Zero severe injuries/fatalities Lost Time Injury Frequency Rate of zero at all the operational plants during FY23 Training Conducted at Plant Locations 89% of contractors covered by JSW CARES audit 18 Contractors (34%) achieve 5 Star
Slide 44: Sustainability: Framework and Policies
Sustainability: Framework and Policies 17 Focus Areas with 2030 Targets from 2020 as Base Year Governance & Oversight by Sustainability Committee Climate Change: Renewable Power: Biodiversity: Committed to being carbon Enhance the renewable power to No Net Loss for Biodiversity Mr. Sunil Goyal Indep
Slide 45: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 FY30 Improvement Strategic Initiatives and Approach Actuals Targets Increased share of renewable energy for deep decarbonization GHG Emissions Process efficiency improvements Climate Change 0.76 0.215 * 60% tCO2e/ MWh Replacement of conden
Slide 46: Sustainability: FY23 Performance
Sustainability: FY23 Performance Key Highlights Performance • TCFD – Peer group assessment completed by ESG consultant Ash Utilisation (%) • ESG survey of suppliers in progress for assessment of supply chain sustainability Climate of the value chain Change • Deep decarbonization – Share of renewable
Slide 47: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities JSW Energy Q4 FY23 Results Presentation 47
Slide 48: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Health & Nutrition Education & Learning o Completed upgradation of Modular Operation Theater & o Wall painting work at Government School in Barmer for constructed Modern Post Operation Ward; handed over to awareness generation and promotion of tradition fol
Slide 49: Sustainability: Recognition of Global Best Practices
Sustainability: Recognition of Global Best Practices Leadership’ (A-) rating in CDP Climate Program 2022. League of American Communication Professional (LACP): Integrated Annual The Sword and Globe of Honour by British Report 2022 received a ‘Gold Award’ in the Safety Council spotlight competition o
Slide 50: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Vijayanagar TPP 50
Slide 51: Business Environment
Business Environment Baspa Hydro Power Plant
Slide 52: Indian Economy
Indian Economy Real GDP Growth (%) • India continues to see resilient growth amid headwinds from slowing global growth and trade 20.1 13.5 o Real GDP growth for quarter Dec-22 stood at 4.4% YoY. 8.4 6.3 3.2 2.8 5.4 4.1 4.4 0.7 2.5 o PMI: Manufacturing (Mar-23: 56.4) and Services (Mar- 23: 57.8) PMI
Slide 53: Power Demand grew by 10% in FY23
Power Demand grew by 10% in FY23 Power Demand in BUs Power Demand Growth YoY 140 40% 127.0 • The total demand recorded in FY23 was 30% 120 20% 1,512 BUs up 10% YoY 10% 100 • On a quarterly basis India witnessed a 0% -1.7% demand of 374 BUs in Q4 FY23 vs 350 BUs 80 -10% Apr May Jun Jul Aug Sep Oct No
Slide 54: Overall Generation grew by 9% in FY23
Overall Generation grew by 9% in FY23 Power Generation Growth YoY Thermal PLFs 40% 85 • Overall generation during FY23 at 1,624 30% 75 68.0 BUs increased by 9% YoY led by higher 20% 65 generation across sources; with 10% 0% 55 renewable generation registering 20% YoY -0.5% -10% 45 growth Apr May Jun
Slide 55: India’s installed capacity stands at 416 GW as on Mar-23
India’s installed capacity stands at 416 GW as on Mar-23 Sector-wise Installed Capacity Segment-wise Installed Capacity Renewable Capacity Breakdown 2% 125.2 11% 15.7 24.0% 25.4% State Thermal 42.6 Other RES Private 416 GW Nuclear 416 GW 30% Wind Central Hydro Solar 57% 66.8 50.5% Overall segment wi
Slide 56: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market Monthly Average Merchant Tariff (₹/unit) Linear Trend - Monthly Avg Price (₹/kwh) 11 FY23 12 9 • Day Ahead Market (DAM) prices were up 10 8.23 7 36% YoY as the average tariff recorded for 8 5 FY23 was ₹ 5.90/KWh vs ₹4.39/KWh in the 6 5.44 corresponding period last y
Slide 57: Appendix
Appendix Hydro Power Plant - Turbine
Slide 58: JSW Energy Company Overview – Broad Structure
JSW Energy Company Overview – Broad Structure Ratnagiri – 1,200 MW Vijayanagar – 860 MW JSW Energy Limited Nandyal – 18 MW Hydro Entities Solar – 10MW 9,770 MW Solar/Wind Entities JSWEBL – 1,080 Products & Services Ind-Barath- 700 Total – 3,868 MW JSW Neo Energy * 5,902 MW Energy Generation Portfoli
Slide 59: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Cr Q4 FY23 Q4 FY22 FY23 FY22 Standalone 1,647 1,081 5,739 3,643 JSW Energy (Barmer) 748 740 3,026 2,667 JSW Hydro Energy 186 812 1,328 1,856 JPTL 19 18 71 72 Consolidated* 2,670 2,441 10,332 8,167 Entity-wise EBITDA P
Slide 60: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Capacity Q4 FY23 Q4 FY22 Change YoY FY23 FY22 Change YoY Location % % % LT 89% 1,506 1,290 17% 5,123 5,270 -3% Ratnagiri (1,200 MW) Total 100% 1,752 1,355 29% 5,713 5,514 4% Barmer (1,080 MW) LT 100% 1,730 1,608 8% 6,544 6,515 0% LT 36% 615 770
Slide 61: Operational Performance – PLF
Operational Performance – PLF PLF Capacity Q4 FY23 Q4 FY22 FY23 FY22 Location % % % % % LT 89% 71 (*98) 85 (*104) 60 (*87) 61 (*79) Ratnagiri (1,200 MW) Total 100% 74 (*98) 57 (*69) 59 (*84) 57 (*73) Barmer (1,080 MW) LT 100% 82 (*87) 76 (*81) 77 (*80) 76 (*81) LT 36% 99 (*100) 118 (*118) 98 (*98) 1
Slide 62: Green Assets| Hydro Q4 FY23 Highlights
Green Assets| Hydro Q4 FY23 Highlights Net Generation (MUs) Hydro : PAF and PLF 1% -8% 107% 104% Operational Highlights 439 5,520 5,595 100% 95% 403 • Net generation at Hydro Assets Short Term (Karcham and Baspa) down 8% YoY due 48% 48% (100%) (99%) (98%) Long (100%) to lower water flow in Q4 FY23.
Slide 63: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Cr (Unless mentioned otherwise) Quarter ended Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Reported PAT 201 339 324 864 560 466 180 272 Add: Depreciation 288 284 281 277 289 294 295 291 Add/(less): Deferred Taxes 21 32 26 (7) 84 42 14 24 (Less): Divide