Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (April 2023)
57 slides from Jsw Energy's investor presentation, April 2023
Slide 1: Accelerating for a Better Tomorrow
Accelerating for a Better Tomorrow Corporate Presentation April 2023
Slide 2: 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$ 5.0 Bn Market Cap: ~US$ 21.2 Bn Infrastructure Cemen
Slide 3: JSW Energy: Our Vision
JSW Energy : Our Vision Bringing positive transformation to every life we touch 3
Slide 4: 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 Energy Products and Services Energy Storage | Electrons to Molecules - Foraying into green hydrogen and its derivatives Baspa Hydro Power Plant 4
Slide 5: Agenda
Agenda Safety & Sustainability JSW Energy – At a Glance Operating & Financial Highlights Why JSW Energy? JSW Neo Energy Ltd Risk Mitigation Annexures Vijayanagar 225MW Solar Power Plant 5
Slide 6: Safety & Sustainability
Safety & Sustainability
Slide 7: 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
Slide 8: 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 9: 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
Slide 13: 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
Slide 14: 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
Slide 15: JSW Energy – Company Overview
JSW Energy –Company Overview At a Glance Vijayanagar Solar Power Plant 15
Slide 16: JSW Energy – At a Glance
JSW Energy – At a Glance Well placed to achieve 10 GW of generation capacity ahead of stated timeline of FY25 and foray into New Age Businesses Power Generation Energy Storage Energy Products & Services 9.9 GW of locked in capacity 3.4 GWh of locked in capacity Solar Module & Green H2 RE 6.0 GW Ther
Slide 17: Asset Overview – 9.9 GW Locked-In
Asset Overview – 9.9 GW Locked-In Division of Locked in capacity Diversified Offtakers Installed 6,615 MW Thermal 3,158 MW 66.8% Wind 1,409 MW Open Hydro 1,391 MW Capacity, Group Solar 657 MW 14% Captive, 21% Includes 1,753 MW Mytrah RE Assets Others, 8% Himachal Under-construction 2,855 MW Pradesh,
Slide 18: JSW Energy – Diversified plant locations
JSW Energy – Diversified plant 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 Maharashtra Andh
Slide 19: 3.3 GW Projects - Under construction | Pipeline
3.3 GW Projects - Under construction | Pipeline Under construction - 2.9 GW Pipeline* - 0.4 GW 0.3 0.1 9.9 0.7 0.7 0.2 0.8 0.4 6.6 SECI - X SECI- IX Installed SECI XII Total locked in Kutehr HEP Chhatru HEP Ind- Barath Capacity Group Captive 2.9 GW of Projects Under Construction | 426 MW Projects in
Slide 20: Under Construction Renewable Projects – 2.2 GW
Under Construction Renewable 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 K
Slide 21: Under Construction Ind-Barath – 700 MW
Under Construction 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 Attractive Opportunity o Attractive purchase consideration
Slide 22: Installed Portfolio – 4.9 GW (excl. Mytrah)
Installed Portfolio – 4.9 GW (excl. Mytrah# ) Barmer: 1,080MW 4.9 GW installed Baspa II: 300MW & Karcham Wangtoo: 1,091MW 4 Configuration: 8 X 135MW 35% Renewable Configuration: 3x100MW (Baspa II) ; 4x272.75MW (Karcham) Units operating: since 20093 65% Thermal Units operating: Baspa II since
Slide 23: Operating & Financial Highlights
Operating & Financial Highlights Karcham-Wangtoo Hydro Power Plant
Slide 24: Healthy Operations and Financials (excl. Mytrah)
Healthy Operations and Financials (excl. Mytrah) 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 7,160 N
Slide 25: Robust balance sheet to support renewable-led growth
Robust balance sheet to support renewable-led growth (excl. Mytrah) 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
Slide 26: Why JSW Energy?
Why JSW Energy ? - Compelling Investment Story - Key Highlights Committed to reaching Net Zero emissions by 2050
Slide 27: Compelling Investment Story
Compelling Investment Story 1 At the forefront of Energy Transition Scaling to 10 GW by 2025 and 20 GW by 2030 Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green Sustainable growth hydrogen, ammonia and its derivatives Resilient Business, Consistent Performan
Slide 28: Compelling Investment Story
Compelling Investment Story 1 At the forefront of Energy Transition Scaling to 10 GW by 2025 and 20 GW by 2030 Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green Sustainable growth hydrogen, ammonia and its derivatives Resilient Business, Consistent Performan
Slide 29: At the forefront of Energy transition | 10 GW by 2025
At the forefront of Energy transition | 10 GW by 2025 Strategy Pillars Articulated Strategy Performance Thermal On Track to meet targets before timeline 20 20 Renewable Thermal Renewable 10 9.8 10 1 Platform Capacity 3.2 6.3 3.9 3.9 Renewable Led Growth 4.6 3.2 3.2 6.8 5.9 6.1 1.4 3.1 FY 21 FY 25e F
Slide 30: 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 23 Actual FY 32 Estimated FY02 (Actual) FY23 (Actual) 2,290 1,511 216 335 + 779 BU + 119 GW 5% CAGR 5% CAGR 1,511 216 523 78 Base Demand (in
Slide 31: 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 62% in FY 30 Changing Environment and our Approach Domain Environment Our Approach FY 30 FY 23 4% Market • High cost of • Bidding assumptions 19 GW, 2% Share at 20GW borrowing due to t
Slide 32: 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 Peak Supply (GW)- Conventional Sources ( Peak Demand (GW) Thermal + Nuclear + Hydro) Storage requirement (GWh)* 350 400 351.5 350 300 300 250 250 Peak Supply - Conventional Increasing Peak D
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 RE coupled with Energy Storage 2 Load following RE Solutions designed specifically as per solutions the load profile of customers Firm dispat
Slide 34: 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
Slide 35: Energy Storage Solutions: Hydro Pumped Storage Projects (PSP)
Energy Storage Solutions: Hydro Pumped Storage Projects (PSP) India’s Market Potential JSW’s Plans Received LoI for 300 MW PSP from Power Company of Karnataka Ltd Only 3.3 GW operational out of 97 GW potential Resources secured for 9.8 GW/ 64GWhr PSP • Hydro Power Obligations to bolster developm
Slide 36: 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
Slide 37: 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
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: 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
Slide 40: 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 41: Steady Operations and Robust Financials (4.8 GW)
Steady Operations and Robust Financials (4.8 GW) 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 EBI
Slide 42: 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 excl. Mytrah): Steady operations and robust financial: Track record
Slide 43: 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 44: JSW Neo Energy Ltd
JSW Neo Energy Ltd Progressive Commissioning of SECI X Wind Project SECI X Tuticorin, Tamil Nadu 44
Slide 45: JSW Neo Energy – Green Energy Platform of JSW Energy
JSW Neo Energy – Green Energy Platform of JSW Energy Ratnagiri – 1,200 MW Vijayanagar – 860 MW JSW Energy Limited Nandyal – 18 MW Hydro Entities Solar – 10MW 9,896 MW JSWEBL – 1,080 Solar/Wind Entities Ind-Barath- 700 Products & Services Total – 3,868 MW JSW Neo Energy * 6,028 MW Energy Generation P
Slide 46: Green driving the platform capacity
Green driving the platform capacity JSW Neo 6,028 MW Operational Assets – 3,447 MW Under Construction & Pipeline – 2,581 MW 3,624 MW Mytrah Assets: Wind 1,331 MW Hydro Wind Solar Hydro Wind Hydro 1,757 MW Total capacity 1,391 MW 1,409 MW 647 MW 366 MW 2,215 MW Plant (MW) Karcham Wangtoo Mytrah Wind
Slide 47: JSW Neo: 3.4 GW Operating Capacity
JSW Neo : 3.4 GW Operating Capacity Installed Capacity by Location JSW Neo Energy Capacity (GW) Punjab Himachal Pradesh 6.1 Solar: 50 MW Hydro: 1,391 MW Rajasthan Madhya Pradesh Wind: 258 MW 3.4 Wind: 30 MW 1.4 Gujarat Telangana Wind: 78 MW Wind: 101 MW FY21 FY23 FY25e Solar: 327 MW Maharashtra Andh
Slide 48: 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 49: 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 50: 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 51: Risk Mitigation
Risk Mitigation
Slide 52: 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
Slide 53: 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
Slide 54: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Pooling Substation – SECI X 54
Slide 55: Annexures
Annexures
Slide 56: 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
Slide 57: JSW Energy’s Corporate Journey
JSW Energy’s Corporate Journey 260 MW 260 MW 995 MW 1994 2000 2002 2009 • Incorporated as Jindal • Commercial operation • Name changed to • Commercial operation of SBU-2 Tractbel Power of SBU-1 260 MW at Jindal Thermal 600 MW at Vijaynagar Company Limited Vijaynagar Power Company Ltd • Synchronizati