Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (August 2016)
33 slides from Jsw Energy's investor presentation, August 2016
Slide 1: JSW Energy Limited Investor Presentation August 2016
JSW Energy Limited Investor Presentation August 2016
Slide 2: Agenda
Agenda Overview Value Proposition Business Appendix Environment 2
Slide 3: JSW Group – overview
JSW Group – overview USD 11 billion group with presence across the core sectors JSW Steel*: India’s leading integrated steel JSW Energy*: Engaged across the value producer (Steel making capacity: 18MTPA) chain of power business (Operational plants’ capacity: 4,531MW – proposed increase to 6,031 MW^)
Slide 4: JSW Energy – Presence across the value chain
JSW Energy – Presence across the value chain Currently operational Operational transmission line – JV with capacity: 4,531MW Power MSETCL: two 400KV transmission lines Power generation transmission JV with Toshiba, Japan for Equipment Rajasthan (lignite): Kapurdi manufacturing of super- Mini
Slide 5: Established energy company with 4,531 MW operational capacity
Established energy company with 4,531 MW operational capacity… proposed increase to 6,031 MW^ Barmer: 1,080MW Baspa II (300MW) & Karcham Wangtoo (1,091MW) Configuration: 8 X 135MW Units operating: Baspa II since 2003 and Karcham Wangtoo Units operating: since 20103 since 2012 Technology: Sub
Slide 6: Proven track record
Proven track record FY12 FY16# Capacity (MW) 2,600 4,531 CAGR FY12–16: 15% Net Generation (MUs) 13,594 22,064 CAGR FY12–16: 13% Total Revenue INR 62,654mn / $1,044mn INR 102,096mn / $1,702mn CAGR FY12–16: 13% EBITDA INR 15,944mn/ $266mn INR 44,112mn/ $735mn CAGR FY12–16: 29% CAGR FY12–16:
Slide 7: Corporate strategy
Corporate strategy Efficient capital allocation for organic growth Selective Pursue selective inorganic growth opportunities which will enhance cash flows and be Growth RoE accretive Diversification of Fuel Mix and Off- Increasing proportion of Long Term PPAs – goal to reach over 85% of total
Slide 8: Sound Corporate Governance
Sound Corporate Governance Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, Audit Committee compliance with regulations by the Company and its subsidiaries Comprises of five Non-Executive Directors Identifies qualified persons and recommends
Slide 9: Agenda
Agenda Overview Value Proposition Business Appendix Environment 9
Slide 10: Value proposition
Value proposition 1 Efficient Capital Allocation and Execution Capabilities 2 Portfolio of Efficient Operating Assets 3 Diversified Fuel Tie-up 4 Balanced Mix of Off-take Arrangements 5 Robust Financial Profile 10
Slide 11: Efficient Capital Allocation and Execution Capabilities
1 Efficient Capital Allocation and Execution Capabilities Project cost of some the power plants set up by other players in the industry Power project Capacity Project cost 1st COD MW ` crore/MW $mn/MW Year Lanco (Amarkantak) 600 5.23 0.87 2009 Lanco (Udupi) 1,200 4.67 0.78 2010 Aryan Coal (Kasaipall
Slide 12: Portfolio of Efficient Operating Assets
JSW Energy Standalone1 2 Portfolio of Efficient Operating Assets JSW Energy Standalone PLF All India private sector thermal power plants' PLF* Among the best run thermal power plants in 93% 83% 84% India on a consistent basis 81% 80% 64% 62% 61% 61% 59% Vijayanagar plant has been consistently re
Slide 13: Diversified Fuel Tie-up and balanced Mix of Off-take Arrangements
Diversified Fuel Tie-up and balanced Mix of Off- 3 4 take Arrangements Fuel sources – Power off-take arrangements – optimal mix of long term o Imported coal contracts & merchant power sales (return optimisation) …. o Domestic coal Long term: o Lignite 34% Stable cashflows, pre-defined 28% returns
Slide 14: Robust Financial Profile
5 Robust Financial Profile FY15 EBITDA Margin (%1) FY15 Return on Capital Employed (%2) 17.98% 67.80% 10.59% 40.10% 40.05% 9.29% 7.96% 7.85% 30.74% 6.38% 26.04% 23.69% 21.15% 4.57% JSW Energy JPVL R Power Adani Power CESC NTPC Tata Power JSW Energy CESC Tata Power Adani Power NTPC JPVL R Power (Stan
Slide 15: Robust Financial Profile
5 Robust Financial Profile FY15 Net Debt/Equity (x) FY15 Net Debt/EBITDA (x) 7.60 10.81 10.95 4.89 7.16 5.35 3.14 4.40 1.51 2.45 1.97 1.01 1.05 0.50 JSW Energy CESC NTPC R Power Tata Power JPVL Adani Power JSW Energy CESC NTPC Tata Power Adani Power R Power JPVL (Standalone) (Standalone) Free cash
Slide 16: Well poised to capitalise on improving sector fundamentals
Well poised to capitalise on improving sector fundamentals JSW Energy’s Advantage / Approach Increase share of long term PPAs to over 85% Stability of cash flows takes Regulated sector precedence over growth Leverage low fixed cost advantage for upcoming Case 1 Bids Put on-hold growth projects
Slide 17: Agenda
Agenda Overview Value Proposition Business Appendix Environment 17
Slide 18: Capacity profile and PLF's
Capacity profile and PLF’s Sector-wise Installed Capacity – 303 GW Mode-wise Installed Capacity (as on Jun 30, 2016) (as on Jun 30, 2016) +4,028 MW* +65 MW* RES +965 MW* Central 14% State 25% +65 MW* 34% Hydro 14% Private Nuclear Thermal 41% 2% 70% +4,993 MW* Most of the capacity additions in Q1 F
Slide 19: Demand-supply scenario
Demand-supply scenario Power Demand Supply Position Q1 FY17 (BU) Peak Demand and Peak Met Q1 FY17 (GW) 120 11.0% 10.0% 140 295 293 153 100 150 9.0% 120 8.0% 7.0% 80 100 6.0% 3.1% 5.0% 92 90 90 90 80 60 4.0% 0.3% 0.9% 3.0% 76 76 60 1.9% 0.7% 53 51 1.0% 40 1.0% 2.0% 45 45 2.0% 0.4% 41 40 40 -1.0% 38 3
Slide 20: Indian economy and thermal coal prices
Indian economy and thermal coal prices Industrial Production growth turned positive in May- Thermal coal prices inched up, while INR 2016. Almost all the sectors showed improvement. depreciated slightly during Q1 FY17 API 4 Coal (monthly avg.) Inflation has been inching up in the last few months
Slide 21: Agenda
Agenda Overview Value Proposition Business Appendix Environment 21
Slide 22: Strong financial track record
Strong financial track record Total Revenue (Rs. mn) EBITDA (Rs. mn, RHS) Net Debt (Rs. mn) Net Debt to Equity 44,112 1,20,000 1,60,000 38,535 2.40 34,536 40,000 1,00,000 1,44,762 2.00 1,02,096 1,20,000 1.60 91,477 96,103 32,000 1.52 80,000 89,076 1.36 1.60 60,000 30,066 24,000 80,000 94,049 1.01 1.
Slide 23: Operational performance
Operational performance Q1 FY17 plant-wise net generation Q1 power sales break-up 26% 43% -4% 2,397 -8% 37% 1,987 1,702 1,990 1,574 1,501 1,434 4,019 1,405 44% 1,292 63% 2,490 56% Ratnagiri Vijayanagar Barmer Hydro^ Q1FY16 Q1FY17 Long term Short term Q1 FY16 Q1 FY17 PLF (%) Q1 FY16 Q1 FY17 Q1 FY16 Q
Slide 24: Consolidated financial results
Consolidated financial results ` Crore Particulars Q1 FY16 Q1 FY17^ Change Turnover 2,167 2,492 15% EBITDA 887 1,159 31% EBITDA Margin(%) 41% 47% 6% Interest 262 429 64% Depreciation 178 240 35% Profit Before Tax 447 490 10% Profit after Tax 309 367 19% Total Comprehensive Income 283 496 76% Diluted
Slide 25: Consolidated financial results
Consolidated financial results USD mn Particulars Q1 FY16 Q1 FY17^ Change Turnover 320 369 15% EBITDA 131 171 31% EBITDA Margin(%) 41% 47% 6% Interest 39 63 64% Depreciation 26 35 35% Profit Before Tax 66 72 10% Profit after Tax 46 54 19% Total Comprehensive Income 42 73 76% Diluted EPS (`)* 0.28 0.
Slide 26: Consolidated financial highlights
Consolidated financial highlights Particulars Mar 31, 2016 Jun 30, 2016 `Crores USD mn `Crores USD mn Net Worth 9,779 1,446 10,232 1,513 Net Debt 14,476 2,141 13,836 2,046 Net Debt to Equity Ratio (x) 1.48 1.35 Weighted average cost of debt 10.32% 10.32% USD/ ` = 67.6166 (RBI reference rate as on Ju
Slide 27: Acquisition of 500 MW Bina Power plant - Rationale
Acquisition of 500 MW Bina Power plant - Rationale Enhanced scale of operations – Capacity increase from 5,531 MW to 6,031 MW (including proposed acquisition of 1,000MW Tamnar power plant from Jindal Steel & Power Ltd.) Operational power plant with good infrastructural connectivity and proven tr
Slide 28: Bina Power plant – Project location
Bina Power plant – Project location Location : Bina, Dist. Sagar in MP (15 km north of the Bina Town) Accessibility : Road : NH-26 (50 Km) & NH-3 (70 Km) Rail : Semarkhedi (4 Km from plant site & 14 Km from Bina Junction) Bina Air : Bhopal (160 Kms) Port : Dahej (862 Kms) 28
Slide 29: Bina SPV (Bina Power Supply Company): Snapshot
Bina SPV (Bina Power Supply Company) : Snapshot Capacity - 500 MW (2 x 250 MW) Plant Possible to enhance capacity by 1,600 MW Unit # 1 : 31st August 2012 CODs Unit # 2 : 7th April 2013 Clearances All major consents and clearances are in place Water Sufficient water is available – barrage
Slide 30: Proposed Scheme of Acquisition
Proposed Scheme of Acquisition Minority Shareholder(s) JPVL 99% 1% Bina SPV JSWEL/Subsidiaries 500 MW (2 X 250 MW) coal based Thermal power plant at Bina, Sagar (MP) At Closing, JSWEL and/or its subsidiaries would acquire 100% of the Securities of Bina SPV into which the assets would be transferre
Slide 31: Opportunity for organic growth
Opportunity for organic growth Chhattisgarh: 1,320 MW Land Available Water Available EC Available Kutehr: 240 MW* Land Available Water Available EC Available Ratnagiri: 3200 MW Vijayanagar: 660 MW* Land Available Land Available Water Available Water Available EC Available EC Pending Ratnagiri and Ch
Slide 32: 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 33: Thank you
Thank you 33