Jsw Energy Limited · NSE:JSWENERGY

Jsw Energy — Investor Presentation (January 2024)

67 slides from Jsw Energy's investor presentation, Feb 6, 2024

  1. Slide 1: Exchange filing cover letter – Corporate Presentation

    Energy Limited Regd. Office: JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, CIN: L74999MH1994PLC077041 Phone: 022-4286 1000 Fax: 022-4286 3000 Website: www.jsw.in SEC / JSWEL 6th February, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exchan

  2. Slide 2: Delivering Promises, Realising True Potential

    Delivering Promises Realising True Potential Corporate Presentation | January 2024

  3. Slide 3: Forward Looking and Cautionary Statement (1/2)

    Forward Looking and Cautionary Statement (1/2) THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA. Important Notice This presentation and the accompanying slides (the “presenta

  4. Slide 4: Forward Looking and Cautionary Statement (2/2)

    Forward Looking and Cautionary Statement (2/2) The information contained in and the statements made in this presentation should be considered in the context of the circumstances prevailing at the time. There is no obligation to update, modify or amend such information or statements or to otherwise n

  5. Slide 5: JSW Group Overview

    JSW Energy Steel  Power producer with 9.8 GW of generation portfolio by CY24,  India’s largest steel producer in terms of installed capacity  Targeting 20GW generation + 40GWh of Storage by FY30  Capacity of 29.7 mtpa, growing to 38.5 mtpa by FY25  Market Cap: ~US$ 9.8 Bn  Targeting 50 mtpa ca

  6. Slide 6: Mission and Vision

    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

  7. Slide 7: JSW Energy – Presence across the value chain

    JSW Energy – 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 Power Generation Energy Storage Energy Products & Services 9.8 GW Installed Capacity by CY24 3.4 GWh of locked in capacity Solar Module

  8. Slide 8: Pan India Footprint of Diverse Asset Base by CY24

    Pan India Footprint of Diverse Asset Base by CY24 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 Andhra

  9. Slide 9: Well Diversified Portfolio – Focused on Maximising Cash Returns

    Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Current open Open Capacity, Generation 9,792 MW capacity – 15% Group 14% Captive, 22% Installed 7,189 MW Under-construction Others, 7% 30% Current Exposure to 2,603 MW Thermal 3,508 MW* HP, 3% Gr

  10. Slide 10: Agenda

    Agenda Safety & Sustainability Healthy Operations and Financials Why JSW Energy ? JSW NEO – at a Glance Appendix JSW Energy Corporate Presentation - Jan‘24 9

  11. Slide 11: Safety & Sustainability

    Safety & Sustainability JSW Energy, Barmer

  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 No Net Loss for Biodiversity Independent Mr. Sunil Go

  13. Slide 13: Sustainability: Targets and Strategy

    Sustainability: Targets and Strategy SD Targets FY20 FY30 Improvement Strategic Initiatives and Approach Actuals Targets  TCFD – Identified associated short tem , medium term and Long term risks  GHG Emissions  Supply Chain Sustainability – development of Digital Platform is in progress for value

  14. Slide 14: Sustainability: Q3 FY24 Performance

    Sustainability: Q3 FY24 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate • Wind Projects – Tuticorin – generation started and commissioned 232.2 Change MW till Q3 FY 24. 100% 100% 100% 100% • Continuous focus on process

  15. Slide 15: Awards and Recognition

    Awards and Recognition JSW Energy Limited, Vijayanagar Received Green Vijayanagar Plant received CEE Best Maple Foundation Received British Energy Efficient Wellness at work Safety Council Sword Award for CPP-4 unit Diamond Award in of Honor at London in Dec 23 Nov 23 in Nov 23 “Platinum Award in th

  16. Slide 16: Strong Board Oversight and Leadership

    Strong Board Oversight and Leadership Mr. Sajjan Jindal Mr. Parth Jindal Mr. Sharad Mahendra Mr. Pritesh Vinay Chairman & Managing Non-Executive, Non- Director Joint Managing Director & CEO Director (Finance) Independent Director Mr. Ashok Ramachandran Ms. Rupa Devi Singh Mr. Sunil Goyal Mr. Munesh

  17. Slide 17: Healthy Operations and Financials

    Healthy Operations and Financials Sholtu Hydro Power Plant - Turbine

  18. Slide 18: Operating Locations: Pan India presence as of Jan-24

    Operating Locations: Pan India presence as of Jan-24 Current Operational Capacity (7,189 MW) Punjab Himachal Pradesh 50 MW 1,391 MW Rajasthan Madhya Pradesh 258 MW 30 MW 1,080 MW Odisha 350 MW Gujarat 78 MW Telangana 101 MW 327 MW Maharashtra 52 MW Andhra Pradesh 365 MW 1,200 MW 18 MW 10 MW Karnatak

  19. Slide 19: Healthy Operations and Financials

    Healthy Operations and Financials 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 10,867 21.9 9,062 ~22BUs ₹ 3,138Cr 21.5 7,160 8,736 Net Generation Cash PAT 2 20.8 Figu

  20. Slide 20: 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 1.3x $ Bn 2 Net Worth Net Debt Net Debt/EBITDA Net Debt/Equity 3.2 2.7 2.5 2.3 2.3 8.58% 69 2.0 Wt. average cost of debt * Receivable Days** 0.8 0.9 Figures as of December 31,

  21. Slide 21: Net Debt Movement

    Net Debt Movement Particulars in ₹ Cr Capital Work- in-Progress (CWIP) Operational Projects 2,580 4 1,095 113 424 26,286 24,260 7,890 5,850 18,410 18,396 ND/EBITDA# (excl. CWIP) at 3.2x Net Debt as on New Debt Taken Forex restatement Repayment Movement in short Change in Cash Net Debt as on Sep 30,2

  22. Slide 22: Why JSW Energy?

    Why JSW Energy ? - Investment Story - Key Highlights Committed to reaching Net Zero emissions by 2050

  23. Slide 23: JSW Energy | Investment Story

    JSW Energy | 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

  24. Slide 24: JSW Energy | Investment Story

    JSW Energy | 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

  25. Slide 25: 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 2,280 335 243 GW + 769 BU + 119 GW 1,511 5% CAGR 5% CAGR 216

  26. Slide 26: 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

  27. Slide 27: 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* 350 396 300 250 Peak Supply - Conventional 200 Increasing Peak Demand-Supply Gap to be plugged by RE + Storage 150 Peak Demand 23.5 100 FY 18 FY19 FY 20 FY 21 FY 22 FY

  28. Slide 28: 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

  29. Slide 29: 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 • Internal Accruals and BS Headroom (no external

  30. Slide 30: Battery Storage (BESS) and Hydro Pump Storage (HPSP)

    Battery Storage (BESS) and Hydro Pump Storage (HPSP) Capacity Mix for FY 2031-32 JSW Energy 40GWh/ 5GW of energy storage capacity by FY 2030 3.4GWH of storage locked National Electricity Plan 2023 PSP BESS* in ( 1GWh of BESS and 2.4 GWh of HPSP) 27 GW 47.2 GW Base Case Energy Storage X 6 hours = X 5

  31. Slide 31: 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

  32. Slide 32: 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 ~181 GW RE tariffs in India to grow to ~24 MMT by 2050 (incl. Hydro) (INR ~ 2.5-3.0) • Contracted India’s large

  33. Slide 33: Progress on Strategy 2.0

    Progress on Strategy 2.0 2.21 20.00 Generation Capacity (GW) 1.80 6.20 2.6 GW under construction 0.24 0.30 9.79 0.76 0.73 0.35 0.22 7.19 4.56 18% CAGR 38% CAGR MoUs with JSW Steel FY21 Current Ind-Barath SECI X SECI IX Group Kutehr SECI XII Operational Generation RE for Projects 2030 Operational Win

  34. Slide 34: JSW Energy | Investment Story

    JSW Energy | 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 fi

  35. Slide 35: 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

  36. Slide 36: JSW Energy | Investment Story

    JSW Energy | 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 fi

  37. Slide 37: Robust Balance Sheet & Cashflows

    Robust Balance Sheet & Cashflows Balance sheet headroom to pursue growth opportunities • Strong Financials As on December 31, Particulars 2023 Networth ₹ 20,976 Cr Net Debt ₹ 26,286 Cr Net Debt/TTM Proforma EBITDA 4.6x Net Debt/TTM Proforma EBITDA 3.2x (excl. under construction projects) Net Debt/Eq

  38. Slide 38: 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 10,867 21.9 8,736 9,062 2,395 2,570 2,551 • 85% of portfolio tied-up under Long 21.5 7,160 1,947 Term PPA; Remaining Avg. Life of 20.8

  39. Slide 39: JSW Energy: Key Highlights

    JSW Energy : Key Highlights  Proven 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 & Services

  40. Slide 40: JSW Energy – at a glance

    Company Overview JSW Energy – at a glance 39 Acquired RE Portfolio Solar Plant- Raibag, Karnataka

  41. Slide 41: Thermal Assets

    Thermal Assets Barmer 1,080 MW Ratnagiri 1,200 MW Ind Barath 700 MW Vijayanagar 860 MW JSW Energy Limited

  42. Slide 42: JSW Energy – 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

  43. Slide 43: Thermal Assets | Q3 FY24 Highlights

    Thermal Assets| Q3 FY24 Highlights Overview Offtaker Profile Operational Assets Rajastha n, 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 1,080 MW 860 MW 700 MW Unit 1 (350 MW)

  44. Slide 44: Renewable Assets - 5.9 GW

    Renewable Assets - 5.9 GW JEW Energy

  45. Slide 45: JSW Energy – Broad Structure

    JSW Energy Company Overview – Broad Structure Ratnagiri – 1,200 MW JSW Energy Limited Vijayanagar – 860 MW Hydro Entities Nandyal – 18 MW 9,792 MW Solar/Wind Entities Solar – 10MW Products & Services Total – 2,088 MW JSW Neo Energy * JSWEBL – 1,080 MW 5,924 MW Ind-Barath – 700 MW Energy Generation P

  46. Slide 46: 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

  47. Slide 47: JSW Neo Energy – At a Glance

    Company JSW NEO Energy Overview – At a Glance Generation Energy Storage Energy Products 5.9 GW 3.4 GWh Backward Integration Alloted 1 GW of solar wafer, cell and module (W-C-M) capacity under PLI Renewable Energy Storage scheme. Installed – 3,681 MW BESS – SECI 500MW/1000MWh Electrons to Molecules U

  48. Slide 48: JSW Neo – Multiple Growth Drivers

    JSW Neo – Multiple Growth Drivers Generation (GW) 8.0 MoU with JSW Steel 0.3 5.9 0.7 0.2 0.8 3.7 0.2 5.9 Current SECI - X SECI- IX Group Kutehr SECI- XII Operational Operational Captive by CY24 Wind Energy Products & Services Green Hydrogen H2 • Contracted 3,800 TPA with JSW Steel 79.5 • MoU with JS

  49. Slide 49: JSW Neo - Footprint of Diverse Asset Base by CY24

    JSW Neo - Footprint of Diverse Asset Base by CY24 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 78 MW Telangana Maharashtra 101 MW Andhra Pradesh 447 MW 365 MW 327 MW 10 MW Ka

  50. Slide 50: 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

  51. Slide 51: Green Hydrogen Opportunity – JSW Energy's Positioning

    Green Hydrogen Opportunity – JSW Energy’s 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 to execu

  52. Slide 52: Contracted Commercial Scale Green Hydrogen Project

    Contracted Commercial Scale Green Hydrogen Project Produce Green Hydrogen for Production of Green Steel Commercial Scale Plant Green H2 H2 & O2 Green Power 3,800 TPA 25 MW RTC power Surety of Offtake Secured land for plant Cost plus Offtake Green Hydrogen Structure agreement Green Oxygen with for bo

  53. Slide 53: 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

  54. Slide 54: 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

  55. Slide 55: 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

  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: Investor Relations Contact

    Investor Relations Contact: ir.jswenergy@jsw.in JSW Energy, Ratnagiri 56

  58. Slide 58: Appendix

    Appendix Acquired RE Portfolio Solar Plant (Hungund, Karnataka)

  59. Slide 59: 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 - Jan‘24 (Chakla Maharashtra) 58

  60. Slide 60: Acquired RE Portfolio Progress on Track

    Acquired RE Portfolio Progress on Track Acquired RE Assets EBITDA 1,650 >1,450 1,187 9M FY24* 1,160 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 5.2x 4.6x ND/EBITDA 7.7x JSW Energy Acquired

  61. Slide 61: JSW Neo - Acquired RE Portfolio

    JSW Neo - Acquired RE Portfolio Net Generation (MUs) PLF Wind Solar 2,724 Operational Highlights 507 2,386 435 557 • Net generation increased 16% YoY 176 513 164 Solar driven by 22% increase in wind Wind generation 2,167 330 1,873 271 Financial Highlights Q3 FY23 Q3 FY24 9M FY23 9M FY24 • During the

  62. Slide 62: Acquired RE - Progress on track

    Acquired RE - Progress on track Wind Generation (MUs) Wind Machine Availability (%) 3 97% 96% 330 +XXX bps +XXX +801 bpsbps +1031 bps 271 73 1 4 12 88% 86% 75 MUs increased due to focused interventions Q3 FY23 MA Benefit GA Loss Maniyachi Cyclone Wind Q3 FY24 Site Machaung impact Q3 FY23 Q3 FY24 9M

  63. Slide 63: Receivables Cycle Improving

    Receivables Cycle Improving Strong collection in Acquired RE Portfolio’s Receivables* Particulars in ₹ Cr 1,859 31% YoY improvement 1,532 1,279 Dec-22 Sep-23 Dec-23 Focused O&M Interventions leading to strong billing/collection growth 158% Operating efficiency 145% reflecting in strong 97% generatio

  64. Slide 64: Under Construction Projects

    Under Construction Projects Acquired RE Portfolio Solar Plant (Hungund, Karnataka) JSW Energy Corporate Presentation - Jan‘24 63

  65. Slide 65: JSW Neo- Wind Power Projects – 2.3 GW

    JSW Neo- Wind Power Projects – 2.3 GW Wind Projects (SECI IX,X, XII and Group Captive)  SECI IX (810MW) : 51 MW Commisioned  SECI X (450 MW) : 232 MW Commisioned  Approx 2 GW is under construction and to be commissioned by CY24 JSW Energy Corporate Presentation - Jan‘24 64

  66. Slide 66: JSW Neo - Kutehr Hydro Power Plant – 240 MW

    JSW Neo - Kutehr Hydro Power Plant – 240 MW Barrage & Intake Tunneling & Concreting Power-House works • Barrage concreting completed 86%  Completed tunneling work ~100% • Power house civil works completed for • Erection of spillway radial gate in  Completed HRT lining ~25% Unit-1 & Unit-2 advanced

  67. Slide 67: JSW Energy - Ind-Barath Unit 2 (350 MW)

    JSW Energy - Ind-Barath Unit 2 (350 MW) Revival works in Progress JSW Energy Corporate Presentation - Jan‘24 66

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