Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (February 2022)
43 slides from Jsw Energy's investor presentation, February 2022
Slide 1: Corporate Presentation February 2022
Corporate Presentation February 2022
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 Overview Growth Plans & Strategy Sustainability Appendix JSW Energy Investor Presentation 3
Slide 4: JSW Group – Overview
JSW Group – Overview India’s leading integrated steel producer Power producer with 7 GW generation portfolio Installed crude steel capacity of 26 mtpa, (Hydro, Renewable and Thermal) growing to 36 mtpa 20 GW Target (85% Renewable) by 2030 Market Cap: ~USD 21.7 Bn Market Cap: ~USD 6.8 Bn
Slide 5: JSW Energy – Overview
JSW Energy – Overview Transforming to ~70% Renewable by FY25 and ~85% by FY30 Diversified Asset Portfolio (7 GW : 55% Renewable) 4.6 GW 2.5 GW Renewable 20 GW Installed Under-construction (Hydro+Wind+Solar) 30% Renewable 100% Renewable Thermal Re-organizing business into Grey and Green Businesses 10
Slide 6: Re-organisation of Green and Grey Business
Re-organisation of Green and Grey Business* 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 (Ka
Slide 7: Healthy Operations and Financials
Healthy Operations and Financials Business model resilient with steady cashflow generation 86% ~95% despite several sectoral headwinds Capacity under LT PPA1 EBITDA contribution from LT Net Generation (BUs) Total Income3 (` Crore) 20 BUs ` 2,004 Crore Net Generation Gross Cash Accruals2 22.1 21.3 9,
Slide 8: Robust Balance Sheet
Robust Balance Sheet Large balance sheet headroom & strong cashflow available to pursue growth 1.74x 0.37x Net Debt/EBITDA Net Debt/Equity Net Worth Net Debt `Crore ↓ 20% YoY 7.82 % Decline in Receivables Wt. average cost of debt 16,082 Outstanding 14,507 11,822 11,646 Figures as of Dec 31, 2021 10,
Slide 9: Agenda
Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy Investor Presentation 9
Slide 10: JSW Energy: Growth Roadmap to 20 GW
JSW Energy: Growth Roadmap to 20 GW Renewables-led growth to 20 GW by 2030 In GW New Growth Platforms Thermal 20 • Green Hydrogen • Hydro Pumped Storage Renewable - • Battery Energy Storage Hydro • Energy Products & Services Renewable - Wind 15.5 & Solar 10 No equity dilution envisaged for 5.5 gro
Slide 11: 225 MW Solar Plant Under-construction in Karnataka
225 MW Solar Plant Under-construction in Karnataka Project near completion; Commissioning from Q4 FY22 JSW Energy Investor Presentation 11
Slide 12: 1.26 GW Wind Plants Under-construction in Tamil Nadu
1.26 GW Wind Plants Under-construction in Tamil Nadu Dedicated transmission line construction and civil work progressing well Orders placed for WTG equipment; Commissioning from Q1 FY23 JSW Energy Investor Presentation 12
Slide 13: 240 MW Kutehr HEP Under-construction in Himachal Pradesh
240 MW Kutehr HEP Under-construction in Himachal Pradesh Completed ~60% (12.7 km) tunneling work (~50% in Q2) well ahead of timelines Targeted Commissioning by Sept 2024 JSW Energy Investor Presentation 13
Slide 14: Value Accretive Growth with Attractive Returns
Value Accretive Growth with Attractive Returns Bidding with No Turn key EPC conservative contracts: instead assumptions creating value with Targeting a niche split package market segment approach offering healthy Modular Cost reductions due returns commissioning; to Self O&M Pre-bid reso
Slide 15: Hydro Pumped Storage Projects (PSP)
Hydro Pumped Storage Projects (PSP) India’s Market Potential JSW’s Plans In Advanced Stages for 2.5 GW PSP Only 3.3 GWh operational out of 90 GWh potential • Signed MoUs with Govt. of Maharashtra for 1.5 GW Hydro Pumped Storage Projects and a Letter of Intent • Hydro Power Obligations to bolster d
Slide 16: Green Hydrogen
Green Hydrogen India’s Market Potential JSW’s Plans Significant H2 demand To tap significant clean energy market opportunity in H2 • India - 2nd largest hydrogen demand base in the world India and become a front-runner in a future hydrogen economy • H2 demand expected to grow to ~24 MMT by 2050; c
Slide 17: Energy Products & Services - Value Unlocking
Energy Products & Services - Value Unlocking All India Peak Demand Pattern (2021)1 Varying power demand requirements and rise of utility scale renewable projects is leading to innovative approaches that encourage pairing solar/wind with storage Morning technologies to offer “round the clock” (RTC) a
Slide 18: Value Accretive Growth with Healthy Debt & Return Metrics
Value Accretive Growth with Healthy Debt & Return Metrics Existing Portfolio (4.6 GW) 4.6 GW New Growth • Generating healthy CF & returns1 of >15% 10 GW 20 GW (Current) Platforms • Steady operations and robust financial: Gross Cash Accruals (GCA) of > `2,000 Crore p.a. ~5x Further Upside ↑ ~2.5x • 8
Slide 19: Adequately Addressing Key Risks and Concerns (1/2)
Adequately Addressing Key Risks and Concerns (1/2) Key Risks/Concerns Favourable Policy Support and Market Interventions Mitigation Strategy by JSW Energy Demand risk • Well established central agencies (SECI, NTPC) for managing • Existing portfolio: 86 % PPA signed which forms about (Clearing of PP
Slide 20: Adequately Addressing Key Risks and Concerns (2/2)
Adequately Addressing Key Risks and Concerns (2/2) Key Risks/Concerns Favourable Policy Support and Market Interventions Mitigation Strategy by JSW Energy Offtake Risk • Must-run status for renewable; Rule notified to provide regulatory • Hydro plants under ‘Must-run status’ with no (revenue/volume)
Slide 21: Key Investment Highlights
Key Investment Highlights Superior project execution skills: Projects set-up in lowest cost & time Proven Execution Excellence Differentiated business strategy for growth to 20 GW, entirely by Renewable - commissioning Q4 FY22 onwards Foraying in New Energy Platforms: Green Hydrogen, Energy St
Slide 22: Agenda
Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy Investor Presentation 22
Slide 23: Framework and Priorities
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 emissions by more t
Slide 24: Initiatives and Disclosures
Initiatives and Disclosures JSW Energy signed SDG7 Energy Compact Key Sustainability Initiatives during Q3 • Next Decade Action Agenda to • Undertaken development of advance Sustainable Development Silvi-pasture plantation near Goal 7 (SDG7) on sustainable Barmer plant for community energy for all w
Slide 25: Recognition of Global Best Practices
Recognition of Global Best Practices JSW Energy achieved a Leadership band with ‘A-‘ JSW Energy (Barmer) Ltd awarded ‘SWORD OF score in the 2021 CDP Climate Change assessment HONOUR’ by British Safety Council JSW Energy is only Indian power generation company to achieve this level • Higher than the
Slide 26: 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 27: Agenda
Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy Investor Presentation 27
Slide 28: Diffentiated Business Strategy
Diffentiated Business Strategy Renewable Energy Project Execution Financial Strength Focus on Market Opportunity & and Operational Sustainability Growth Roadmap Excellence JSW Energy Investor Presentation 28
Slide 29: Significant Market Opportunity: Power Demand Growth
I 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 30: Significant Market Opportunity: Demand to be met by RE
I 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 31: JSW Energy: Growth Framework
I 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 32: Plan to become 20 GW by 2030
I Plan to become 20 GW by 2030 20.0 Under- Construction 2.0 20.0 18.0 Targeted Pipeline GW 2.0 16.0 2.0 14.0 2.0 12.0 2.5 GW U/C 2.0 10.0 GW Targeted Addition From Diverse Sources: 10.0 Solar and Wind Bids 958 MW 240 MW 3.0 8.0 GW RTC Bids 810 MW 450 MW Storage Bids 6.0 C&I customers RE Po
Slide 33: Renewable Energy Projects Under-Construction
I Renewable Energy Projects Under-Construction 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 •Committed: ~`7,000 Crore, Capex Commission
Slide 34: Proven Project Execution and Operational Excellence
II 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
Slide 35: Life-cycle Approach towards Renewable (1/2)
II 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 with high capacity •
Slide 36: Life-cycle Approach towards Renewable (3/2)
II Life-cycle Approach towards Renewable (3/2) 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 vendors only • Sta
Slide 37: Locked-in Resources
II 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, alon
Slide 38: Financial Strength
III Financial Strength • JSW Energy has sufficient balance sheet headroom & strong cashflow to pursue growth to 20 GW by FY30 o Net Debt/EBITDA: 1.74x Consolidated Trade Receivables* (` Crore ) o Net Debt/Equity: 0.37x o Wt. Average Cost of Debt: 7.82% 20% YoY • Effective management of Trade Receiva
Slide 39: Sustainability: Targets & Strategy
IV Sustainability: Targets & Strategy SD Targets FY20 Actuals FY30 Targets Improvement Strategic Initiatives and 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 condens
Slide 40: Sustainability: FY21 Performance
IV 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
Slide 41: ESG Performance amongst the best in the sector
IV 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 Pee
Slide 42: Awards & Recognitions
IV Awards & Recognitions • Certified as ‘Great Place to Work’ Organisation in 2021 • Won Golden Peacock Award For Occupational Health & Safety-2021 JSWEL • National Energy Conservation Award-2020 by Ministry of Power • Rajasthan Energy Conservation Award-2020 • Achieved Five-star grading in the Brit
Slide 43: Investor Relations Contact
August, 2020 Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link