Jsw Energy Limited · NSE:JSWENERGY

Jsw Energy — Investor Presentation (February 2023)

63 slides from Jsw Energy's investor presentation, February 2023

  1. Slide 1: Accelerating for a Better Tomorrow

    Accelerating for a Better Tomorrow Corporate Presentation February 2023

  2. 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

  3. Slide 3: JSW Group Overview

    JSW Energy Steel  Power producer with 9.9 GW locked-in portfolio,  India’s leading integrated steel producer  Targeting 20GW by 2030 (81% renewable capacity)  Installed crude steel capacity of 29.2mtpa, growing to 38.5mtpa  Market Cap: ~US$ 4.6 Bn  Market Cap: ~US$ 21.4 Bn Infrastructure Cemen

  4. Slide 4: JSW Energy: Our Vision

    JSW Energy : Our Vision Bringing positive transformation to every life we touch SECI X Wind Project 4

  5. Slide 5: JSW Energy: Transitioning towards green energy

    JSW Energy : Transitioning towards green energy FY2025 FY2030 FY2050 To become a 10 GW company To become a 20 GW company To become carbon neutral by 2050 Electrons to Molecules Foraying into products and services through energy storage solutions, green hydrogen and its derivatives Baspa Hydro Power

  6. Slide 6: Agenda

    Agenda JSW Energy at a Glance Sustainability Strategy & Vision Asset Overview Why JSW Energy? Risk Mitigation Annexures Vijayanagar Acquisition of Renewable Portfolio of 225MW Solar Power Plant Mytrah Energy 6

  7. Slide 7: JSW Energy – Company Overview

    JSW Energy –Company Overview At a Glance The company is well placed to achieve its capacity growth target of 10 GW much ahead of the stated timeline of FY25 and being future-ready with increased share of renewables and new energy solutions. 9.9 GW 4.8 GW 3.3 GW 1.8 GW Diversified Asset Installed Cap

  8. Slide 8: Healthy Operations and Financials (4.8 GW Operational)

    Healthy Operations and Financials (4.8 GW Operational) Resilient business model with steady cashflow generation despite sectoral headwinds 85% ~95% Net Generation (BUs) Total Income3 (₹ Crore) Capacity under LT PPA1 EBITDA contribution from LT 21.3 20.8 8,560 8,736 20.0 8,061 21BUs ₹ 2,625 Cr 16.8 7

  9. Slide 9: Robust balance sheet to support renewable-led growth

    Robust balance sheet to support renewable-led growth Large balance sheet headroom & strong cashflow available to pursue growth 2.30x 0.54x $ Bn 4 Net Worth Net Debt Net Debt/EBITDA Net Debt/Equity 2.5 2.3 2.2 2.0 2.0 1.7 1.5 8.29% 69 1.5 1.5 1.2 1.2 Wt. average cost of debt Receivable Days 1.0 0.8 0

  10. Slide 10: Sustainability at JSW Energy

    Sustainability at JSW Energy

  11. Slide 11: Continuing our Health & Safety Excellence Journey

    Continuing our Health & Safety Excellence Journey Awards & Zero severe injuries/fatalities (Q3 FY23 & YTD) Recognitions 92% of contractors covered by JSW CARES audit 9 Contractors achieve 5 Star rating & 3 contractors achieve 4 Star in a stringent Internal Safety Assessment 63,000+ Cumulative Safety

  12. Slide 12: 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

  13. Slide 13: Sustainability: Targets and Strategy

    Sustainability: Targets and Strategy FY20 FY30 SD Targets Actuals Targets Improvement Strategic Initiatives and Approach  Increased share of renewable energy for deep decarbonization  GHG Emissions  Process efficiency improvements Climate Change 0.76 0.304 60% tCO2e/ MWh  Replacement of condense

  14. Slide 14: Sustainability: Q3 FY23 Performance

    Sustainability: Q3 FY23 Performance Key Highlights Performance • TCFD assessment initiated by reputed ESG consultant Ash Utilisation (%) Climate • Value Chain survey of suppliers initiated for assessment of supply chain Change sustainability. 100% 100% 100% 100% • Increased share of renewable energy

  15. Slide 15: Advantage JSW: Superior ESG Profile

    Advantage JSW: Superior ESG Profile Board & Governance Air Emissions Water & Waste Management % Board Independent CO2 Internsity (t CO2e/MWh) Specific Fresh Water Consumption 63 60 1.02 (m3/MWh) 50 50 50 50 0.79 0.85 40 0.68 0.47 2.8 3.2 2.2 2.5 1.1 JSW Peer 2 Peer 1 Peer 5 Peer 3 Peer 6 Peer 4 Peer

  16. Slide 16: Sustainability: Initiatives and Disclosures

    Sustainability: Initiatives and Disclosures  Assessment initiated by reputed ESG Consultants.  Increased focus on achieving climate change target of 2030 and subsequently of becoming Carbon Neutral by 2050. Task Force on Climate related Sustainability Assessment for Supply Chain and Plantation dri

  17. Slide 17: Sustainability: Empowering Our Communities

    Sustainability: Empowering Our Communities Sports Promotion & Development Health & Nutrition  Project Shikhar: Bringing powerful  Total 3,725 individuals across transformation in the field of sports Dharapuram (TN) and Ratnagiri (MH) with Project Shikhar screened at camps for eye problems,  Shikh

  18. Slide 18: Strong Board Oversight and Leadership

    Strong Board Oversight and Leadership Mr. Prashant Jain Mr. Pritesh Vinay • Majority Independent Board: 5/9 Mr. Sajjan Jindal Chairman & Managing Joint Managing Director Director (Finance) Directors are Independent & CEO Director • Fully Independent Audit and Remuneration Committees Audit Committee

  19. Slide 19: Vision and Strategy

    Vision and Strategy Site Bridge: Karcham Wangtoo (1,091MW) 19

  20. Slide 20: Vision & Strategy

    Vision & Strategy Scaling towards 20 GW installed capacity by 2030 Transitioning towards Energy Products and Services Operational Under-Construction Pipeline * Under Acquisition** Energy Storage Hydro Pumped Storage (PSP) - Targeting 10 GW  Resources tied-up for ~7.6 GW (~50 GWh) PSP 9.9 in various

  21. Slide 21: Asset Overview

    Asset Overview Karcham-Wangtoo Hydro Power Plant

  22. Slide 22: Asset Overview – 9.9 GW Locked-In

    Asset Overview – 9.9 GW Locked-In Green portfolio driving capacity growth Division of locked-in capacity (9,896) MW Installed (MW) Locked In Growth (MW) 39.0% 48.6% 27 2,293 Installed Thermal 235 1,331 1,391 4,811 9,896 3,158 422 36.6% Under- 29.4% 3,158 construction Wind 1,757 700 Ind-Barath Pipeli

  23. Slide 23: Installed Portfolio – 4.8 GW

    Installed Portfolio – 4.8 GW Barmer: 1,080MW 4.8 GW installed Baspa II: 300MW & Karcham Wangtoo: 1,091MW 4  Configuration: 8 X 135MW 34% Renewable  Configuration: 3x100MW (Baspa II) ; 4x272.75MW (Karcham)  Units operating: since 20093 66% Thermal  Units operating: Baspa II since 20033 and Karcha

  24. Slide 24: 3.3 GW Projects - Under construction | Pipeline | Acquired

    3.3 GW Projects - Under construction | Pipeline | Acquired Under construction Pipeline Acquired 2.2 GW 426 MW 700 MW 9.9 1.8 0.7 8.1 0.3 0.1 0.7 0.8 0.2 0.4 4.8 Installed Kutehr HEP Installed + SECI - X SECI- IX Chhatru HEP (Acquired) Total locked Mytrah RE Capacity Ind Barath Captive SECI- XII Pipe

  25. Slide 25: Under Construction Projects – 2.2 GW

    Under Construction Projects – 2.2 GW Under Construction Portfolio Capacity Scheduled Target Plant Segment Location PPA/Offtaker (MW) Commissioning Commissioning SECI - IX 810 Wind Tamil Nadu 25-Year; SECI Dec-23 progressively from SECI - X 450 Wind Tamil Nadu 25-Year; SECI Jun-23 Q3 FY23 Karnataka,

  26. Slide 26: Update on Under Construction Projects (1/2)

    Update on Under Construction Projects (1/2) SECI-IX & X Wind, Tamil Nadu (1,260 MW) Blades and WTG erection followed by progressive commissioning (27MW commissioned) Locked In 9.9 GW Installed Capacity 4.8 GW Under construction & Pipeline 3.3 GW Under Acquisition 1.8 GW 26

  27. Slide 27: Update on Under Construction Projects (2/2)

    Update on Under Construction Projects (2/2) Kutehr HEP, Himachal Pradesh (240MW) Completed ~90% (19.0 km) tunneling work (up from ~84% in Q2) well ahead of timelines Downstream Left Half Barrage DC Chamber lining in progress HRT concrete lining Locked In 9.9 GW Installed Capacity 4.8 GW Under constr

  28. Slide 28: Pipeline Projects

    Pipeline Projects Generation Storage Systems 426 MW Pipeline Projects Battery Energy Storage System SECI XII Wind • Letter of Award received in Jan-23 for 500 • Letter of Award received in Jul-22 for MW /1000 MWh Battery Energy Storage 300 MW ISTS connected Wind power Systems from SECI capacity Pump

  29. Slide 29: Acquired - Ind-Barath 700 MW

    Acquired - Ind-Barath 700 MW Ind-Barath: Asset Overview o Location: Jharsuguda, Odisha o Configuration: 2 x 350 MW | Thermal Power Plant o Technology: Sub-critical TPP o Fuel Source: Domestic coal o Transaction completed in Dec-22 Acquisition Rationale o Attractive purchase consideration of ₹1,048 c

  30. Slide 30: Mytrah Acquisition at Advance Stage

    Mytrah Acquisition at Advance Stage Value Accretive Deal Mytrah RE Assets: Geographically diverse  Acquired portfolio consists of 422 MW solar and 1,331 MW wind  The assets were acquired at an EV of approximately ₹ 10,530 Cr after adjusting for net current assets implying a EV/EBITDA multiple of 6

  31. Slide 31: Why JSW Energy?

    Why JSW Energy ? Committed to reaching Net Zero emissions by 2050

  32. Slide 32: Compelling Investment Story

    Compelling Investment Story 1 At the forefront of Energy Transition  Scaling to 20 GW (81% 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 fi

  33. Slide 33: Compelling Investment Story

    Compelling Investment Story 1 At the forefront of Energy Transition  Scaling to 20 GW (81% 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 fi

  34. Slide 34: Scaling to 20 GW by 2030

    Scaling to 20 GW by 2030 JSW Energy Ltd Ahead of FY25 capacity target 20.0 4x Well ahead of near term target of 10 GW capacity by FY25… …While foraying into Energy Storage projects (BESS & PSP) 10.0 4.8 Growth driven by… Strong Balance Sheet Current FY 25 FY30 JSW Neo Energy (Green Platform) Net deb

  35. Slide 35: 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 FY 22 Actual FY 32 Estimated FY02 (Actual) FY22 (Actual) 2290 335 1380 202 + 910 BU + 133 GW 5% CAGR 5% CAGR 1380 202 523 78 Base Demand (in BU)

  36. Slide 36: Capacity growth in the next decade to be driven majorly by renewables

    Capacity growth in the next decade of to be driven majorly by renewables Share of Renewables is projected to increase from 27% in FY 22 to 57% in FY 32 Factors key for growth of renewables FY 22 FY 32 Capital Adequacy 59% 32% • Availability of debt at lower interest rates 8% 2% 3% Policy Support 399

  37. Slide 37: Energy Storage Solutions critical in India's Energy Transition

    Energy Storage Solutions critical in India’s Energy Transition JSW Energy to investment in ESS and Electron to Peak Demand vs Supply from Conventional Sources (GW) Molecules businesses, making it future ready 400 • Intermittency of renewable power stems the need Peak Supply (GW)- Conventional Peak D

  38. Slide 38: Energy Storage Solutions: Battery Energy Storage Solutions (BESS)

    Energy Storage Solutions: Battery Energy Storage Solutions (BESS) India’s Market Potential JSW’s Plans 52GW/258GWh1 installed capacity by 2032  LoAs received for SECI bid for the utility scale pilot BESS project (500MW/1000MWh) • Facilitate RE capacity integration by addressing intermittency • Capa

  39. Slide 39: Energy Storage Solutions: Hydro Pumped Storage Projects (PSP)

    Energy Storage Solutions: Hydro Pumped Storage Projects (PSP) India’s Market Potential JSW’s Plans State MoU/LoI Dates Capacity (GW) Only 3.3 GW operational out of 97 GW potential Sep-21 Maharashtra 2.5 Sep-22 • Hydro Power Obligations to bolster development of Telangana Apr-22 1.5 PSPs Uttar Prades

  40. Slide 40: Electrons to Molecules: Green Hydrogen Potential

    Electrons to Molecules: Green Hydrogen Potential Non- fossil fuel based Advantage India energy capacity target of 500GW by 2030 Reduce carbon Significant Hydrogen demand Huge RE potential Low Tariffs emission by 1bn tonnes by 2030 Current demand ~6 MMT expected Existing RE capacity of ~165 GW RE tar

  41. Slide 41: Electrons to Molecules: Green Hydrogen

    Electrons to Molecules: Green Hydrogen India’s Market Potential JSW’s Plans Significant H2 demand H2 • India - 2nd largest hydrogen demand base in the world  To tap significant clean energy market opportunity in India and become a front-runner in a future hydrogen economy • H2 demand expected to gr

  42. Slide 42: 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

  43. Slide 43: Proven project execution and operational excellence

    Proven project execution and operational excellence… Prudent and consistent capital allocation strategy for growth over a 25 year history One of the lowest project execution cost in the industry Business model resilient despite several sectoral headwinds over the last decade 2014 2014 2013 2014 2013

  44. Slide 44: 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

  45. Slide 45: Steady Operations and Robust Financials

    Steady Operations and Robust Financials Consistent Asset Performance Low Trade Receivables 2 Net Generation (BUs) Total Income1 (₹ Crore) 1,628 21.3 20.8 8,560 8,736 1,356 20.0 8,061 16.8 7,160 Dec 31, 2021 Dec 31, 2022 FY20 FY21 FY22 9M FY23 FY20 FY21 FY22 9M FY23 Receivable Days 75 69 EBITDA & EBI

  46. Slide 46: Best-in class balance sheet & cash flows to support renewable-led growth

    Best-in class balance sheet & cash flows to support renewable-led growth Large balance sheet headroom to pursue growth opportunities Healthy internal accruals to support growth Strong credit metrics : Operational Portfolio (4.8 GW):  Steady operations and robust financial: Track record of strong ye

  47. Slide 47: Risk Mitigation

    Risk Mitigation

  48. Slide 48: 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  Well established central agencies (SECI, NTPC) for managing PPAs  Existing portfolio: 85 % PPA signed which forms about 95% of  Discoms/offta

  49. Slide 49: 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  Hydro plants under ‘Must-run status’ with no scheduling risk  Must-run status for renewable; Rule notified to provide regulatory support  ~98

  50. Slide 50: 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

  51. Slide 51: Investor Relations Contact

    Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Pooling Substation – SECI X 51

  52. Slide 52: Annexures

    Annexures

  53. Slide 53: Broad Corporate Structure: Existing

    Broad Corporate Structure : Existing Ratnagiri – 1,200 MW Vijayanagar – 860 MW Hydro Entities JSW Energy Limited Nandyal – 18 MW Solar – 10 MW Solar/Wind Entities Total – 2,088 MW JSW Hydro Energy Limited JSW Energy (Barmer) Limited Jaigad Power Transco JSW Power Trading Co. (1,391 MW) JSW Future En

  54. Slide 54: JSW Neo Energy – Green Energy Vehicle of JSW Energy (Post-Restructuring)

    JSW Neo Energy – Green Energy Vehicle of JSW Energy (Post-Restructuring) Hydro Entities JSW Energy Limited Solar/Wind Entities JSW Neo Energy * 6,028 MW Renewable Portfolio Pipeline JSW Hydro Energy JSW Renewable JSW Renew Energy JSW Renew Energy JSW Renewable of Mytrah Energy SECI XII 300 MW Limite

  55. 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

  56. Slide 56: 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

  57. Slide 57: Value Accretive Business Model

    1 Value Accretive Business Model Conservative assumptions for business model Targeting India’s ~4% of incremental renewable capacity addition to reach 20 GW by 2030 Resulting in prudent selection of growth opportunities to target a niche segment of market offering healthy returns – Mid teen IRRs Hig

  58. Slide 58: Implementation De-risking

    2 Implementation De-risking Long Term PPA ensuring steady cashflow Typical timelines for PPA signing & Tariff adoptions  PPA signing – 90 days from LoA issuance  Tariff Adoption – 120 days from the Effective date of the PPA JSW approach:  Proactive approach to get the PPA/PSA executed and tariff

  59. Slide 59: Life-cycle Approach towards Renewable (1/2)

    2 Life-cycle Approach towards Renewable (1/2) Project Construction and Land Acquisition Power Evacuation • De-scoping of EPC packages to have competitive edge • Strategic selection of ISTS substations for connectivity with high capacity margins to facilitate future • Synergies with group businesses

  60. Slide 60: Life-cycle Approach towards Renewable (2/2)

    2 Life-cycle Approach towards Renewable (2/2) Quality Supplier & Vendors O&M Control • Robust selection process • Dedicated team for quality • Skilled in-house O&M team through competitive route; assurance Award of packages to best-in- • Continuous implementation of class / Tier-I vendors only • Sta

  61. Slide 61: Execution Efficiency

    3 Execution Efficiency Kutehr project completion expected well before One of the fastest execution of the wind project scheduled timelines • Received part-CoD for 27MW of SECI X wind project in a progressive • 90% tunnelling (19.0 km) tunnelling work completed at the end of Q3FY23 commissioning • Ex

  62. Slide 62: JSW Energy's Corporate Journey

    JSW Energy’s Corporate Journey 260 MW 260 MW 260 MW 995 MW 1994 2000 2002 2007 2009 • Incorporated as Jindal • Commercial operation • Name changed to • Formation of JV • Commercial operation of SBU-2 Tractbel Power of SBU-1 2*130 MW Jindal Thermal between Rajwest 2*300 MW units at Vijaynagar Company

  63. Slide 63: Robust Cash Returns on Adjusted Net Worth

    Robust Cash Returns on Adjusted Net Worth ₹ crore (Unless mentioned otherwise) Quarter ended Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Reported PAT 107 201 339 324 864 560 466 180 Add: Depreciation 294 288 284 281 277 289 294 295 Add/(less): Deferred Taxes 27 21 32 26 (7) 84 42 14 (Les

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