Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (November 2023)
70 slides from Jsw Energy's investor presentation, November 2023
Slide 1: Delivering Promises, Realising True Potential
Delivering Promises Realising True Potential Corporate Presentation November 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: JSW Group Overview
JSW Energy Steel Power producer with 9.8 GW of generation portfolio, India’s largest steel producer Targeting 20GW generation + 40GWh of Storage by FY30 Capacity of 29.7 mtpa, growing to 38.5 mtpa by FY25 Market Cap: ~US$ 7.6 Bn Targeting 50 mtpa capacity by FY31 Market Cap: ~US$ 22.2
Slide 4: JSW Energy: Transitioning towards green energy
JSW Energy : Transitioning towards green energy Mission Vision Providing Reliable, Affordable and To be a leading integrated power company Sustainable power with presence across value chain FY2030 To become a 20 GW company and 40GWh Energy Storage FY2050 To become carbon neutral by 2050 Vijayangar J
Slide 5: JSW Energy – Presence across the value chain
JSW Energy – Presence across the value chain Power Generation Energy Storage Energy Products & Services Group Captive 9.8 GW 3.4 GWh of locked-in Solar Module & Green H2 Renewables & Green H2 RE 5.9 GW Thermal 3.9 GW Generation 6.2 GW Storage 2.7 GWh Hydro Pump Storage Progressively Green Hydrogen m
Slide 6: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (9,792 MW) Punjab Himachal Pradesh Wind Hydro 50 MW 1,631 MW Solar BESS Rajasthan Thermal PSP 258 MW Madhya Pradesh 30 MW Green Hydrogen 1,080 MW 1,000 MWh Gujarat 78 MW Odisha 700 MW Maharashtra Telangana 447 MW And
Slide 7: Well Diversified Portfolio – Focused on Maximising Cash Returns
Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Open Capacity, Group Generation 9,792 MW 14% Captive, 22% Installed 6,771 MW Current open Under-construction Others, 7% capacity – 11% 3,021 MW 31% Thermal 3,158 MW Current Exposure to HP, 3% Gro
Slide 8: Agenda
Agenda Safety & Sustainability Healthy Operations and Financials Why JSW Energy ? JSW NEO – at a Glance Appendix JSW Energy Corporate Presentation - Nov‘23 Vijayanagar 225MW Solar Power Plant 8
Slide 9: Safety & Sustainability
Safety & Sustainability Sholtu, Charkha Initiative
Slide 10: Continued Focus on Health & Safety Excellence
Continued Focus on Health & Safety Excellence All Figures are for Q2 FY24 Zero severe injuries/fatalities Lost Time Injury Frequency Rate of zero at all the operational plants 84% of contractors covered by JSW CARES audit 20 Contractors (34%) achieve 5 Star rating & 73% contractors achieve 3 Star an
Slide 11: 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 No Net Loss for Biodiversity Mr. Sunil Goyal Independ
Slide 12: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 FY30 Improvement Strategic Initiatives and Approach Actuals Targets TCFD –Preliminary report received GHG Emissions Supply Chain Sustainability – development of Digital Platform is in progress for value Climate 0.76 0.215 * 60% chain partner
Slide 13: Sustainability Performance
Sustainability Performance Biodiversity Supplier Human & Ecosystem Assessment Rights Preliminary TCFD Phase 1 -Gap Identification of risks Human rights training Report received assessment and risk associated with critical plan - FY24 mapping using global suppliers based on ESG on discriminat
Slide 14: Sustainability: H1 FY24 Performance
Sustainability: H1 FY24 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate Change • Wind Projects – Tuticorin – generation started and commissioned 216 MW till 100% 100% 100% 100% Q2 FY 24. • Continuous focus on process i
Slide 15: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sholtu, Shikhar Initiative JSW Energy Corporate Presentation - Nov’23 15
Slide 16: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Project Shikhar: Bringing Powerful Transformation in the Field Of Sports Our Footprint Boxing training Strength and 4 Centres sessions Condition Shikhar Fellowship coaching 120+ Trainees Dedicated Events and Professional Competitions 374 Medals Coaches Plat
Slide 17: Awards and Recognition
Awards and Recognition “Gold Award - 14th Exceed Green Power- Gen ESG future Environment & Sustainability Award in award -2023 for sustainability Best ESG category” Initiative – Water SEEM National Sustainable Efficiency by Award for Energy development Council of Enviro Efficiency Platinum foundatio
Slide 18: Strong Board Oversight and Leadership
Strong Board Oversight and Leadership Mr. Prashant Jain Mr. Pritesh Vinay Mr. Sajjan Jindal Mr. Parth Jindal Joint Managing Director Director (Finance) Chairman & Managing Non-Executive, Non- & CEO Director Independent Director Mr. Munesh Mr. Rajeev Sharma Ms. Rupa Devi Singh Mr. Sunil Goyal Khanna
Slide 19: Healthy Operations and Financials
Healthy Operations and Financials Sholtu Hydro Power Plant - Turbine
Slide 20: Operating Locations: Pan India presence
Operating Locations: Pan India presence Current Operational Capacity (6,771 MW) Punjab Himachal Pradesh 50 MW 1,391 MW Rajasthan 258 MW 1,080 MW Madhya Pradesh 30 MW Gujarat 78 MW Telangana 101 MW 327 MW Maharashtra 52 MW Andhra Pradesh 365 MW 1,200 MW 18 MW 10 MW Karnataka Tamil Nadu 95 MW 278 MW 5
Slide 21: Healthy Operations and Financials
Healthy Operations and Financials Resilient business model with steady cashflow generation despite sectoral headwinds 85% ~90% Net Generation (BUs) Total Income3 (₹ Crore) Capacity under LT PPA1 EBITDA contribution from LT 21.9 10,867 20.0 20.8 ~22BUs ₹ 2,999Cr 15.3 7,160 8,736 6,401 Net Generation
Slide 22: Robust balance sheet to support renewable-led growth
Robust balance sheet to support renewable-led growth Robust balance sheet & strong cashflow available to pursue growth 4.6x 1.2x $ Bn 2 Net Worth Net Debt Net Debt/EBITDA Net Debt/Equity 3.5 2.8 2.9 3.0 2.7 2.3 2.3 2.4 2.5 2.3 8.51% 56 2.0 2.0 Wt. average cost of debt * Receivable Days** 1.5 0.8 0.9
Slide 23: Net Debt Movement
Net Debt Movement Particulars in ₹ Cr Leverage Net Debt (₹ Cr) EBITDA (TTM; ₹ Cr) ND/EBITDA (x) Capital Work- in-Progress (CWIP) 10,338 3,993 2.6x Operating Acquired RE Portfolio Acquired RE Portfolio (Normalised EBITDA) 8,072 1,650 4.9x Operational Projects Combined (Excl. CWIP) 18,410 5,643 3.3x 6
Slide 24: Why JSW Energy?
Why JSW Energy ? - Compelling Investment Story - Key Highlights Committed to reaching Net Zero emissions by 2050
Slide 25: Compelling Investment Story
Compelling Investment Story 1 At the forefront of Energy Transition Scaling to 20 GW & 40GWH / 5GW of storage by 2030 Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent Pe
Slide 26: Compelling Investment Story
Compelling Investment Story 1 At the forefront of Energy Transition Scaling to 20 GW & 40GWH / 5GW of storage by 2030 Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent Pe
Slide 27: Significant Market Opportunity: Power Demand Growth to be met by RE
Significant Market Opportunity: Power Demand Growth to be met by RE Historical Power Demand Growth Similar growth expected in power demand over next decade FY02 (Actual) FY23 (Actual) Sept-23 Peak FY 23 FY30 estimated demand was 1,511 216 2,280 335 240 GW + 769 BU + 119 GW 1,511 5% CAGR 5% CAGR 216
Slide 28: Participating in India's Green Transition
Participating in India’s Green Transition India’s share of Renewables is projected to increase from 41% in FY 23 to 61% in FY 30 Changing Environment and our Approach Domain Environment Our Approach FY 30 FY 23 4% Market • High cost of • Bidding assumptions 15 GW, 2% Share at 20GW borrowing due to t
Slide 29: Energy Storage critical in India's Energy Transition
Energy Storage critical in India’s Energy Transition Peak Demand vs Supply from Conventional Sources (GW) 400 Storage Capacity GWh* 350 322 350 300 300 250 250 200 Peak Supply - Conventional Increasing Peak Demand-Supply Gap 150 200 to be plugged 100 by RE + Storage 150 Peak Demand 50 23.5 100 0 FY
Slide 30: Strategy 2.0 (2023-2030) – at glance
Strategy 2.0 (2023-2030) – at glance Forward integration 1 GW/ annum of RE generation 40 GWh/ 5GW ~3,800 TPA PV Module ENERGY STORAGE ELECTRONS TO 20 GW MOLECULES Solar Module GENERATION Pump Hydro Storage Green Hydrogen manufacturing CAPACITY Production, plant to be Battery Energy Storage (W-C-M) u
Slide 31: 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 32: Battery Storage (BESS) and Hydro Pump Storage (HPSP)
Battery Storage (BESS) and Hydro Pump Storage (HPSP) Optimal Generation Capacity Mix for 2029-30 JSW Energy 40GWh/ 5GW of energy storage capacity by FY 2030 3.4GWH of storage locked Apr-2023 Report PSP BESS* in ( 1GWh of BESS and 2.4 GWh of HPSP) 19.0 GW 41.6 GW Base Case Energy Storage X 6 hours =
Slide 33: Energy Storage – Enabler for New RE based products and services
Energy Storage – Enabler for New RE based products and services Higher CUF 1 Hybrid RE with Better utilization of transmission Energy Storage corridor 2 RE coupled with Energy Storage Load following RE Solutions designed specifically as per solutions the load profile of customers Firm dispat
Slide 34: Electrons to Molecules: Green Hydrogen Potential
Electrons to Molecules: Green Hydrogen Potential Advantage India Significant Hydrogen demand Huge RE potential Low Tariffs JSW Energy Current demand ~6 MMT expected Existing RE capacity of ~165 GW RE tariffs in India to grow to ~24 MMT by 2050 (incl. Hydro) (INR ~ 2.5-3.0) • Contracted India’s large
Slide 35: Towards sustainable and integrated growth
Towards sustainable and integrated growth Under Construction 3.0 GW, to be Commissioned by CY24 Under-Construction (GW) 2.2 20.0 1.8 6.2 0.2 0.3 9.8 0.8 0.7 0.7 0.2 6.8 4.6 17% CAGR 34% CAGR MoUs with Group FY21 Current Ind-Barath SECI X SECI IX Group Kutehr SECI XII Operational MoU - MoU - RE for P
Slide 36: Compelling Investment Story
Compelling Investment Story At the forefront of Energy Transition Scaling to 20 GW (85% renewable) by 2030 Being future-ready : New Energy Solutions including energy storage, green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent Performance and Strong fina
Slide 37: Proven project execution and operational excellence
Proven project execution and operational excellence… JSW Capacity Addition India Capacity Addition Peak Deficit (RHS) Prudent and consistent capital allocation strategy for growth over a 25 year history 3,000 Period of reducing peak power 18% deficits, projects with committed 16% 2,500 capex of JSW
Slide 38: Compelling Investment Story
Compelling Investment Story At the forefront of Energy Transition Scaling to 20 GW (85% renewable) by 2030 Being future-ready : New Energy Solutions including energy storage, green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent Performance and Strong fina
Slide 39: Robust Balance Sheet & Cashflows
Robust Balance Sheet & Cashflows Balance sheet headroom to pursue growth opportunities • Strong Financials Figures in ₹ Cr As on Sept 30, 2023 Networth 19,877 Net Debt 24,260 Net Debt/TTM Proforma EBITDA 4.6x Net Debt/Equity 1.2x Wtd. Average Cost of Debt 8.51% Cash PAT TTM 2,999 • Healthy Credit Ra
Slide 40: Steady Operations and Robust Financials
Steady Operations and Robust Financials Net Generation (BUs) Total Income1 and EBITDA (₹ Cr) Cash PAT (₹ Cr) and Cash Returns Steady operations and robust financial 21.9 10,867 20.8 20.0 8,736 2,395 2,570 • 85% of portfolio tied-up under Long 15.3 7,160 1,947 1,923 Term PPA; Remaining Avg. Life of 6
Slide 41: JSW Energy: Key Highlights
JSW Energy : Key Highlights Superior project execution skills: Projects set-up in lowest cost & time Proven Execution Differentiated business strategy for growth to 20 GW, driven by Renewable Excellence Foraying in New Energy Platforms: Green Hydrogen, Energy Storage, Energy Products & Service
Slide 42: JSW Energy – at a glance
Company Overview JSW Energy – at a glance 42 Acquired RE Portfolio Solar Plant- Raibag, Karnataka
Slide 43: JSW Energy Company Overview – Broad Corporate Structure
JSW Energy Company OverviewStructure – Broad Corporate Standalone Ratnagiri – 1,200 MW Hydro Entities JSW Energy Limited Vijayanagar – 860 MW Nandyal – 18 MW Other subsidiaries Solar/Wind Entities 9,792 MW Solar – 10MW JSWEBL – 1,080 MW Products & Services Ind-Barath – 700 MW Total – 2,088 MW JSW Ne
Slide 44: Thermal Assets
Thermal Assets Ratnagiri 1,200 MW Ind Barath 700 MW Barmer 1,080 MW Vijayanagar 860 MW JSW Energy Limited
Slide 45: Thermal Assets | Generating Robust Cashflows
Thermal Assets| Generating Robust Cashflows Overview Offtaker Profile Operational Assets - 3,158* MW Under Construction Rajasthan , 28% Total Thermal Open, Capacity 34% 3,858 MW 3,858 MW Group MSDECL, Captive, 8% Ratnagiri Barmer Vijayanagar Ind - Barath 30% Operational Installed Capacity 1,200 MW 1
Slide 46: Renewable Assets
Renewable Assets
Slide 47: Renewable Assets | Presence across all modes of generation
Renewable Assets | Presence across all modes of generation Total 5,922 MW Offtaker Profile Operational Assets – 3,613 MW Under Construction – 2,321 MW Expected to be operational by CY 2024 3,628 MW Haryana, Open Capacity, 2% HYDRO WIND WIND Raj, 4% 4% 61% SECI, HP, 5% 31% Wind AP, SOLAR 6% 5,934 HYD
Slide 48: JSW NEO Energy Overview – At a Glance
Company JSW NEO Energy Overview – At a Glance Generation Energy Storage Energy Products 5.9 GW 3.4 GWh Backward Integration 1 GW of solar wafer, cell and module (W-C-M) capacity under PLI scheme. Renewable Energy Storage Installed – 3,603MW BESS – SECI 500MW/1000MWh Electrons to Molecules Under Cons
Slide 49: JSW Neo – Presence across the value chain
JSW Neo – Presence across the value chain Well placed to achieve 10 GW of generation capacity ahead of stated timeline of 2025 with foray into New Age Businesses JSW NEO - Assets Power Generation Energy Storage Energy Products & Captive Solar, 243 Kutehr HEP, 240 Services SECI XII Wind, 300 Mytrah 5
Slide 50: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (5,924 MW) Punjab Himachal Pradesh 50 MW 1,631 MW Wind Hydro Rajasthan Madhya Pradesh Solar BESS 1,000 30 MW 258 MW MWh Green H2 PSP Gujarat Presence across 10 states 78 MW Telangana Maharashtra 101 MW Andhra Pradesh
Slide 51: 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 52: 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 53: 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 54: Solar Module Manufacturing – Supply Chain De-risking
Solar Module Manufacturing – Supply Chain De-risking NEED FOR BACKWARD INTEGRATION BACKWARD INTEGRATION AT JSW ENERGY 1 GW under PLI 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 o
Slide 55: JSW Neo Growth Framework
JSW Neo Growth Framework Value Accretive Business Implementation Execution Efficiency Model De-risking Prudent selection of growth opportunities Life cycle approach Group’s project execution excellence • Bidding based on P90 generation assumption • Land acquisition, De- scoped project • Fast executi
Slide 56: Ensuring Consistent Value Creation
Ensuring Consistent Value Creation Protecting Returns Enhancing IRRs Further Growth Opportunities Value Accretive Business Model De-scoped Project Execution Green Energy Needs of JSW Group and C&I customers • No Turn key EPC contracts: instead creating • Bidding based on P90 generation assumption va
Slide 57: Growth Framework leading to industry-leading returns
Growth Framework leading to industry-leading returns Single digit to lower Mid-teen High-teen teen IRR% IRR % Returns Realized Equity Pre-Bid Project Execution JSW Energy Potential Upside Realized IRRs Preparation Target Returns Levers Post COD Returns Current market returns Bidding with No Turn
Slide 58: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Vijayanagar TPP 58
Slide 59: Appendix
Appendix Acquired RE Portfolio Solar Plant (Hungund, Karnataka)
Slide 60: Acquired RE Portfolio Progress on Track
Acquired RE Portfolio Progress on Track Acquired RE Assets EBITDA 1,650 >1,450 1,187 H1FY24 947 FY 2023 FY 2024 FY 2025 Acquired RE Portfolio Net Debt/EBITDA Pre-Acquisition FY 23 FY24 Normalised ₹1,187 Cr > ₹ 1,450 Cr ₹1,650 Cr ₹1,237 Cr EBITDA 7.2x 5.7x 5.0x ND/EBITDA 7.7x JSW Energy Acquired Corp
Slide 61: Acquired RE Portfolio Progress on Track
Acquired RE Portfolio Progress on Acquired RE Portfolio Track Asset Optimisation & Performance Improvement progressing well JSW Energy Acquired Corporate RE Portfolio WindPresentation - Nov‘23 (Chakla Maharashtra) 61
Slide 62: Acquired RE Wind Assets (1,331 MW)
Acquired RE Wind Assets (1,331 MW) Asset Optimisation & Performance Improvement Plan - Promising Outcome Witnessed Restoration of WTGs WIND All WTGs which were stopped before acquisition have been restored Maniyachi site (252 MW) fully operational and contributed in Q2 FY24 Action Plan Machine avail
Slide 63: Acquired RE Wind - progress on track
Acquired RE Wind - progress on track Actual Generation vs Wind Speed Machine Availability (%) +630 bps 97% +800 bps 7.0 96% 91% 6.4 88% 878 1,141 Q2 FY23 Q2 FY24 Actual Generation (MUs) Wind Speed (m/s) Wind Generation (MUs) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 1,141 -1 CUF (%) 84 22 40.1% +830 bps 883 1
Slide 64: Acquired RE Solar Assets (422 MW)
Acquired RE Solar Assets (422 MW) Asset Optimisation & Performance Improvement Plan - Promising Outcome Witnessed Operations & Maintenance SOLAR O&M SOP implemented and monitored on regular basis Action Plan Spares are proactively planned and spares backup created accordingly • Improved Performance
Slide 65: Acquired RE Solar - progress on track
Acquired RE Solar - progress on track P-90 vs Actual Generation (MUs) Solar Generation (MUs) Q2 FY24 165 4 165 151 14 -1 148 18 MUs due to focused interventions P-90 Generation Actual Generation Q2 FY23 Performance GII Gain Billing Cycle Q2 FY24 Ratio gain Plant Availability (%) CUF (%) 98.9% 99.0%
Slide 66: Receivables Cycle Improving
Receivables Cycle Improving Strong collection in Acquired RE Portfolio’s Receivables Particulars in ₹ Cr 2,236 30% YoY improvement 1,799 1,532 Sep-22 Jun-23 Sep-23 Focused O&M Interventions leading to strong billing/collection growth 91% 17% Operating efficiency reflecting in strong generation and b
Slide 67: Under Construction Projects
Under Construction Projects Acquired RE Portfolio Solar Plant (Hungund, Karnataka) JSW Energy Corporate Presentation - Nov’23 67
Slide 68: JSW Neo - Wind Power Projects – 2.2 GW
JSW Neo- Wind Power Projects – 2.2 GW Wind Projects (SECI IX,X, XII and Group Captive) 216 MW commissioned by end of Q2 FY24 Expected commissioning by CY 2024 JSW Energy Corporate Presentation - Nov‘23 68
Slide 69: JSW Neo - Kutehr Hydro Power Plant – 240 MW
JSW Neo - Kutehr Hydro Power Plant – 240 MW Tunneling & Concreting Electro-mechanical works Concreting Barrage Completed ~ 99.4% (21 km) tunneling • Spiral Case erection work of all • Completed ~76 % of Concreting of work (up from ~ 95.9 % in Q1) units completed Barrage Power house and control r
Slide 70: JSW Energy - Ind-Barath 700 MW – Commissioning in FY24
JSW Energy - Ind-Barath 700 MW – Commissioning in FY24 Mechanical Electrical Works • Boiler light up work completed • Transmission tower foundation, erection and • Coal and ash handling work in stringing work in progress progress • Switchyard overhauling work started JSW Energy Corporate Presentatio