Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q4 FY21 Earnings Presentation
50 slides from Jsw Energy's earnings presentation, Jun 25, 2021
Slide 1: Q4 and FY21 Results Presentation
JSW Energy Limited JSW Steel Limited Q4 and FY21 Results Presentation Investor presentation August, 2020 June 25, 2021
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 Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 3
Slide 4: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 4
Slide 5: Key Highlights for Q4 and FY21 (1/2)
Key Highlights for Q4 and FY21 (1/2) • Long Term (LT) Net Generation: Higher by 3% in both Q4 and FY21 • LT Net Thermal Generation: Higher by 5% in Q4 and 8% in FY21 Operational • LT PPA at Ratnagiri plant increased by 179 MW in May’21, further de-risking the portfolio; Ratnagiri LT PPA tie-up now a
Slide 6: Key Highlights for Q4 and FY21 (2/2)
Key Highlights for Q4 and FY21 (2/2) • Pursuing renewable-led growth strategy to expand from 4.6 GW to 10 GW by FY25 and to 20 GW by FY30 • 2.5 GW under-construction in full-swing: Update on Growth o SECI IX - 810 MW: PPA signed for 540 MW with SECI; Balance 270 MW PPA to be signed in Q2 FY22 Strate
Slide 7: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 7
Slide 8: Covid-19 Relief Efforts
Covid-19 Relief Efforts 2,200+ workforce vaccinated via 24x7 Covid support helpdesk for 450+ beds provided in isolation centres 700 households and migrant workers drives conducted across locations employees and their families created across locations supported by food distribution drives at Barmer P
Slide 9: Sustainability: Framework and Priorities
Sustainability: 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 emi
Slide 10: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 Actuals FY30 Targets Improvement Strategic 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 condenser tubes with gra
Slide 11: Sustainability: FY21 Performance
Sustainability: FY21 Performance Key Highlights Performance Scope 1 emissions ('000 tCO2e) CO2 intensity (tCO2e/MWh) • Steam turbine modernization in 300MW units at Vijayanagar Climate • Replacement of Condenser tubes with graphene coating at Vijayanagar 17,201 0.76 Change • Commissioned 1.06 MWp So
Slide 12: Empowering Our Communities
Empowering Our Communities Empowering communities with sustainable livelihoods Social Development • Creating community awareness of various Govt. welfare schemes CSR Footprint through HAQDARSHAK programme : ~3600 beneficiaries – JSW Energy Piped water supply to village community at Barmer • Focus on
Slide 13: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Figures are for FY21 Zero Severe/Major Injuries Safety Excellence continues with the achievement of following ‘Serious 58% reduction in Lost Time Injury Frequency Rate Accident Free Operations’ (LTIFR) Serious Accident Free Days 92,000+ Safety Observ
Slide 14: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 14
Slide 15: JSW Energy: Investment Highlights
JSW Energy: Investment Highlights Proven Execution • Superior project execution skills: projects set-up in lowest cost & time Excellence • Sound operating efficiency: one of the lowest O&M costs per MW amongst IPPs • 86% of portfolio has LT PPAs with two-part tariff structure and almost full fuel co
Slide 16: Growth Strategy Pillars
Growth Strategy Pillars 1 2 3 4 Significant Market Opportunity Proven Project Execution Locked-in Growth Capital & Growth Roadmap & Operational Excellence Resources Available JSW Energy Q4 FY21 Results Presentation 16
Slide 17: Significant Market Opportunity: Power Demand Growth
1 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 18: Significant Market Opportunity: Demand to be met by RE
1 Significant Market Opportunity: Demand to be met by RE As a signatory to the Paris Accord, India plans to achieve a Demand to be met incrementally with Renewable Energy low-carbon future 450 +356 GW Goals of India’s Intended Nationally Determined Contribution: In GW 5x • To reduce the emissions in
Slide 19: JSW Energy: Growth Roadmap to 20 GW
1 JSW Energy: Growth Roadmap to 20 GW Total Installed Capacity (GW) Thermal Renewable - Hydro 20.0 Renewable - Wind & Solar 15.2 10.0 5.2 4.6 1.4 1.6 1.6 3.2 3.2 3.2 FY21 FY25e FY30e Thermal 30% 70% 68% 32% 84% 16% Renewable Committed to delivering sustainable growth and strong shareholder returns G
Slide 20: JSW Energy: 10 GW Portfolio by FY2025
1 JSW Energy: 10 GW Portfolio by FY2025 Under- Construction Adding ~2 GW/year Targeted Pipeline 0.0 2.5 GW between FY25-30 10.0 3.0 GW GW 958 MW 240 MW 450 MW 6.8 7.0 810 MW GW 5.8 5.4 4.6 4.6 GW FY21 SECI IX SECI X Group Captive Kutehr Total Targeted FY25e Pipeline 2.5 GW Under-Construction • SECI
Slide 21: JSW Energy: Growth Framework
1 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 22: Value Creation
1 Value Creation EBITDA Existing Portfolio (4.6 GW) generating healthy CF & returns1 of >15% ~5x • Steady operations and robust financials ~2.5x • Generating Gross Cash Accruals (GCA) of > `2,000 Crore p.a. ~`3,000-3,200 Cr • 86% of portfolio tied-up under Long Term PPA: 4.6 GW 10 GW 20 GW • Remaini
Slide 23: Proven Project Execution and Operational Excellence
2 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 Coal-based Busin
Slide 24: Project Execution: Life-cycle Approach towards Renewable (1/2)
2 Project Execution: 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 for competitive edge connectivity wi
Slide 25: Project Execution: Life-cycle Approach towards Renewable (2/2)
2 Project Execution: 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
Slide 26: Locked-in Resources
3 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, along
Slide 27: Available Growth Capital
4 Available Growth Capital Significant investments required in renewable JSW Energy has sufficient balance sheet headroom & energy industry strong cashflow to pursue growth to 20 GW by FY30 450 • Sources for Growth Capital Available: FY21 • Balance Sheet Strength (current gearing ~0.43x) (Actual) •
Slide 28: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 28
Slide 29: Operational Performance – FY21
Operational Performance – FY21 Net Generation (MU) Hydro : PAF and PLF 5,967 5,641 Renewable 97% 96% 1,391 MW Hydro* FY20 • Renewable Net Generation lower by Long Term 53% 50% 5% YoY 9 MW Solar FY21 o Lower water flow at hydro plants, however PAF at 96%; Maintained FY20 FY21 PAF PLF PAF at over 90%
Slide 30: Operational Performance – Q4FY21
Operational Performance – Q4FY21 Net Generation (MU) Hydro: PAF and PLF 94% • Renewable Net Generation lower by 433 83% Q4FY20 384 Renewable 1391 MW Hydro* Q4FY21 11% YoY Long Term 9 MW Solar o This was due to lower water flow at 15% 14% hydro plants Q4 FY20 Q4 FY21 PAF PLF • Thermal Generation for
Slide 31: Consolidated Financial Results – Q4 and FY21
Consolidated Financial Results – Q4 and FY21 Total Revenue1 (` Crore) EBITDA (` Crore) and EBITDA Margins -16% -3% 8,560 3,244 3,144 7,160 -13% FY20 FY20 FY21 8% FY21 1,848 1,614 629 677 38% 44% • Decline in Revenue mainly due to shift 34% 42% to Job-work model with certain Q4 FY customers during FY
Slide 32: EBITDA Bridge – Q4 and FY21
EBITDA Bridge – Q4 and FY21 Particulars in ` Crore Q4- YOY FY21- YOY High long term PPA tie-ups ensuring steady EBITDA generation JSW Energy Q4 FY21 Results Presentation * Compensation received from customer towards shortfall in offtake of contracted quantity of power in earlier year 32
Slide 33: Robust Balance Sheet
Robust Balance Sheet • Amongst the strongest balance sheets in the sector - Well positioned to pursue Figures in ` Crore As on Mar 31, 2021 growth opportunities Networth 14,507 • Strong Liquidity with healthy cash balances1: `2,137 Crore Net Debt 6,206 • Financial flexibility enhanced by equity inve
Slide 34: Net Debt Movement – Q4 and FY21
Net Debt Movement – Q4 and FY21 Particulars in ` Crore Q4- YOY FY21- YOY Large balance sheet headroom available to embark on growth projects * Includes unencumbered bank balances, FDs, liquid mutual funds and short-term advances (< 3 month maturity) JSW Energy Q4 FY21 Results Presentation 34
Slide 35: Trade Receivables
Trade Receivables • Receivables decline 23% QoQ and 38% YoY in Q4FY21 Consolidated Trade Receivables* (` Crore) • All plants placed favourably in States’ Merit Order Dispatch o Further, Hydro plants under ‘Must-run status’ with 2,109 no scheduling risk 1,693 1,307 • No history of any bad debts from
Slide 36: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 36
Slide 37: Indian Economy
Indian Economy Real GDP Growth 10.00% 5.4% 4.6% • Economy on an improving trend; upward momentum likely to sustain 3.3% 3.0% 0.5% 1.6% • Real GDP registered a 1.6% growth in Q4FY21, driven by recovery due 0.00% to opening up of economic activities Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4F
Slide 38: Power Demand
Power Demand Power Demand Growth YoY +25.0% +22.0% • Power demand in Mar’21 saw a robust growth of 22.8% YoY +15.0% +11.1% +4.5% +3.2% +4.5% • This was driven by a strong pickup in economic +5.0% -2.4% +3.8% -0.6% activity coupled with a low base effect. In Mar’20 -4.2% demand had declined by 8.4% Y
Slide 39: Power Generation
Power Generation Power Generation Growth YoY Segment-wise Share in Generation Total +22.5% Generation 1,242 1,308 1,376 1,389 1,382 +25.0% (BU) 3.5% 3.3% 3.1% 3.8% 3.7% +15.0% +11.2% +5.5% 6.6% 7.8% 9.2% 10.0% 10.6% +4.8% +3.5% +5.1% 9.9% 9.6% 9.8% 11.2% +5.0% +0.0% 10.9% -5.0% -2.5% -1.8% -… -15.0%
Slide 40: Installed Capacity (1/2)
Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity 94.4 GW RE, Central, State, 103.9 GW +3,820 MW * 24.7% 97.5 GW 25.5% 27.2% +3,580 MW* -29 MW * 382.2 GW 382.2 GW Hydro, Thermal 46.2 GW 12.1% , 61.4% 234.7 GW +411 MW* +3,138 MW * Private, Nuclear, 47.3% 1.8% 6.8
Slide 41: Installed Capacity (2/2)
Installed Capacity (2/2) Overall Segment-wise Net Capacity Addition (GW) RE Segment-wise Net Capacity Addition (GW) 21.7 11.8 11.3 1.0 0.3 0.6 1.7 17.2 1.8 9.4 0.8 8.6 14.0 0.9 5.5 0.5 7.4 12.1 0.3 12.8 11.3 1.6 2.1 0.4 0.1 0.5 11.8 1.6 9.4 7.4 9.4 8.6 6.5 6.4 5.5 5.5 7.7 4.6 4.3 4.9 3.4 FY17 FY18 F
Slide 42: Agenda
Agenda Key Highlights Sustainability Growth Strategy Operational & Financial Performance Business Environment Appendix JSW Energy Q4 FY21 Results Presentation 42
Slide 43: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Location Capacity Q4FY21 Q4FY20 Change YoY FY21 FY20 Change YoY % MUs MUs % MUs MUs % LT 81% 1,085 1,125 -4% 5,255 5,070 +4% Ratnagiri (1,200 MW) Total 100% 1,172 1,705 -31% 5,677 7,193 -21% Barmer (1,080 MW) LT 100% 1,526 1,346 +13% 6,369 5,27
Slide 44: Operational Performance – PLF
Operational Performance – PLF PLF Location Capacity Q4FY21 Q4FY20 FY21 FY20 Remarks – Q4 FY21 % % % % % LT 81% 59 (*66) 61 (*72) 71 (*85) 69 (*83) Ratnagiri (1,200 MW) Lower short term sales Total 100% 50 (*55) 71 (*79) 59 (*69) 75 (*85) Barmer (1,080 MW) LT 100% 72 (*78) 63 (*83) 74 (*82) 62 (*82)
Slide 45: Consolidated Financial Results
Consolidated Financial Results Q4FY21 Q4FY20 Particulars in ` Crore FY21 FY20 1,614 1,848 Total Revenue1 7,160 8,560 677 629 EBITDA 3,144 3,244 42% 34% EBITDA Margin(%) 44% 38% 257 248 Interest 896 1,051 294 289 Depreciation 1,167 1,168 126 92 Profit Before Tax (before exceptional items) 1,081 1,025
Slide 46: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ` Crore Q4FY21 Q4FY20 FY21 FY20 Standalone1 729 1,016 2,898 4,314 JSW Energy (Barmer) 625 604 2,665 2,597 JSW Hydro Energy 123 148 1,223 1,264 JPTL 18 21 72 80 Consolidated* 1,570 1,793 6,922 8,273 Entity-wise EBITDA Pa
Slide 47: Balance Sheet
Balance Sheet Net Debt (` Crore) Net Worth (` Crore) 13,900 14,507 9,530 12,467 12,202 13,037 8,945 8,493 11,646 7,671 6,719 6,206 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Leverage Ratios Wt. Average Cost of Debt Net Debt*/Equity Net Debt*/TTM EBITDA 9.13%
Slide 48: USD 707 mm Green Notes Issuance by JSW Hydro Energy
USD 707 mm Green Notes Issuance by JSW Hydro Energy Key Highlights: Issuer JSW Hydro Energy Limited • JSW Hydro Energy Ltd is the largest hydroelectric energy Issue Rating Ba1/BB+ (Moody’s/Fitch) company in India in the private sector in terms of annual power Status Senior Secured Green Notes genera
Slide 49: FY21 Performance – JSW Hydro Energy Ltd
FY21 Performance – JSW Hydro Energy Ltd Generation (MU) USD 707 million Green Bond Issued by JSW Hydro Energy 6,000 5,953 5,673 5,629 Key Highlights : Gross Generation Net Generation Gross Generation 106% of Design Energy • Additional income from secondary energy sales FY20 FY21 PAF PAF maintain
Slide 50: Investor Relations Contact
JSWRelations Investor Steel Limited Contact: ir.jswenergy@jsw.in Investor presentation August, 2020