Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Investor Presentation (November 2024)
59 slides from Jsw Energy's investor presentation, November 2024
Slide 1: Agility & Commitment Reinforced
Agility & Commitment Reinforced Supporting India in its Quest for Energy Security Corporate Presentation | Nov 2024
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: JSW Group Overview
JSW Energy Steel ▪ Power producer with 10 GW of generation portfolio by FY25, ▪ India’s largest steel producer with capacity of 35.7 mtpa ▪ Targeting 20GW generation + 40GWh of Storage by FY30 ▪ Growing to 43.5 mtpa by Sep’27 and 51.5 mtpa by FY31 ▪ Market Cap: ~US$ 14 Bn ▪ Market Cap: ~US$ 28 Bn In
Slide 4: JSW Energy: Transitioning towards green energy – 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 BEFORE FY2030 To become a 20 GW company and 40GWh Energy Storage FY2050 To become carbon neutral by 2050 Vijay
Slide 5: JSW Energy – Presence Across the Value Chain
JSW Energy – Presence Across the Value Chain Well placed to achieve 20 GW of generation capacity ahead of stated timeline of 2030 Power Generation Energy Storage Energy Products & Services 16.2 GWh of locked in capacity Solar Module & Green H2 Thermal, Hybrid+ FDRE, 3.9 GW, Green Hydrogen 4.8 GW, 25
Slide 6: JSW Energy: Resilient Business Model
JSW Energy: Resilient Business Model Opportunities Capability Capital ▪ India's Ambitious Target 4.6 GW Organic Capacity Addition ▪ Financial Strength – 50 GW capacity bid per annum – Robust balance sheet ▪ Proficiency in Executing large-scale – JSW energy well placed to capitalize on – Strong credi
Slide 7: Well Diversified Portfolio – Focused on Maximising Cash Returns
Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Generation Open capacity in 7.9 GW – 13% Open Capacity, 8% Pipeline 3,540 MW Others, 3% Group Captive, 20% Solar 560 MW Installed 7,740 MW 22% GJ, 3% Group Captive in Wind 250 MW HP, 2% 7.9 GW -
Slide 8: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by FY 25 (9,840 MW) Punjab Himachal Pradesh Wind Hydro 50 MW 1,631 MW Solar BESS Rajasthan Madhya Pradesh Thermal PSP 258 MW 1,080 MW 30 MW Green Hydrogen 1,000 MWh Gujarat Odisha 78 MW 700 MW Maharashtra Telangana 492 MW 1,2
Slide 9: Agenda
Agenda Safety & Sustainability Healthy Operations and Financials Why JSW Energy ? JSW NEO – at a Glance Appendix JSW Energy Corporate Presentation Nov-24 9
Slide 10: Safety & Sustainability
Safety & Sustainability JSW Energy, Barmer
Slide 11: 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 Mr. Sunil Goyal ▪ Committed to being carbon Enhance the renewable power No Net Loss for Biodiversity Independe
Slide 12: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy FY20 Improvement FY30 SD Targets Actuals (FY20 to FY30) Targets Strategic Initiatives and Approach ▪ TCFD – Identified associated short term , medium term and Long term risks ▪ Supply Chain Sustainability – development of Digital Platform for value chain partners
Slide 13: Sustainability: Q2 FY25 Performance
Sustainability: Q2 FY25 Performance Key Highlights Performance ▪ Supply chain sustainability assessment – Registration of vendors in advanced stage; ESG assessment of registered vendors in progress. Ash Utilisation (%) ▪ TCFD (physical risk assessment) at Hydro plants – Site visit completed at JSW H
Slide 14: Strong Board Oversight and Leadership
Strong Board Oversight and Leadership Audit Committee Compensation & nomination & Risk management Stakeholder’s relationship Corporate social Sustainability Committee Permanent invitees to remuneration Committee Committee Committee responsibility Committee Sustainability Committee Mr. Sajjan Jindal
Slide 15: Healthy Operations and Financials
Healthy Operations and Financials Sholtu Hydro Power Plant - Turbine
Slide 16: Operating Locations: Pan India presence
Operating Locations: Pan India presence Current Operational Capacity (7,740 MW) Punjab Himachal Pradesh Wind 50 MW 1,391 MW Solar Rajasthan Madhya Pradesh Thermal 258 MW 1,080 MW 30 MW Hydro Gujarat Odisha 78 MW 350 MW Maharashtra Telangana 97 MW 1,200 MW 101 MW 327 MW Karnataka Andhra Pradesh 198 M
Slide 17: Healthy Operations and Financials
Healthy Operations and Financials Business model with steady cashflow generation despite sectoral headwinds 86% ~85% Net Generation (BUs) Total Income (₹ Crore) Capacity under LT PPA EBITDA contribution from LT1 27.9 11,941 10,867 9.8BUs ₹ 1,190Cr 20.8 21.9 17.7 8,736 Net Generation Cash PAT 2 6,502
Slide 18: 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 4.1x 0.9x $ Bn 2 Net Worth Net Debt Net Debt/EBITDA Net Debt/Equity 3.2 3.2 2.7 2.8 2.3 2.3 2.5 8.81% 70 Wt. average cost of debt Receivable Days 0.9 Figures as of Sep 30, 2024 Mar'
Slide 19: Net Debt Movement
Net Debt Movement Particulars in ₹ Cr Capital Work- in-Progress (CWIP) Operational Projects 1,527 18 324 85 399 24,875 23,339 10,175 11,706 ND/EBITDA# 13,164 13,169 (excl. CWIP) at 2.2x Net Debt as on New Debt Taken Forex Repayment Movement in Change in Cash Net Debt as on Jun 30,2024 restatement sh
Slide 20: Why JSW Energy ?
Why JSW Energy ? - Investment Story - Key Highlights Committed to reaching Net Zero emissions by 2050
Slide 21: 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 ▪ Investing in New Energy Solutions including FDRE/ Hybrid Power plants, Energy storage (BESS & PSP) and Sustainable growth green hydrogen Resilient Business, Consistent Performa
Slide 22: 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 ▪ Investing in New Energy Solutions including FDRE/ Hybrid Power plants, Energy storage (BESS & PSP) and Sustainable growth green hydrogen Resilient Business, Consistent Performa
Slide 23: 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) FY24 (Actual) FY 24 FY 32e 1,627 243 2474 366 + 653 BU + 123 GW 1627 243 5% CAGR 5% CAGR 523 78 Base Demand (BUs) Peak Power Deman
Slide 24: Participating in India's Green Transition
Participating in India’s Green Transition India’s share of Renewables is projected to increase from 43% in FY 24 to 65% in FY 32 Changing Environment and our Approach Domain Environment Our Approach FY 24 FY 32e • High cost of • Bidding assumptions 20 GW,2% borrowing due to take into account Capital
Slide 25: Energy Storage critical in India's Energy Transition
Energy Storage critical in India’s Energy Transition Storage Capacity GWh* Peak Demand vs Supply from Conventional Sources (GW) 400 396 350 300 250 Peak Supply - Conventional 200 Increasing Peak Demand-Supply Gap to be plugged 150 Peak Demand by RE + Storage 100 FY 18 FY19 FY 20 FY 21 FY 22 FY 23 FY
Slide 26: 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
Slide 27: Strategy 2.0 – 20 GW Generation + 40 GWh of Storage before FY30
Strategy 2.0 – 20 GW Generation + 40 GWh of Storage before FY30 CAPACITY 20 Pillars for Self sustainable and Integrated road map 2.7x 40GWh/5GW Energy Storage by FY30 • Sustainable value creation focused on Cash Returns 7.5 1GW Solar Module Manufacturing • Internal Accruals and BS Headroom (no exter
Slide 28: 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
Slide 29: Battery Storage (BESS) and Hydro Pump Storage (HPSP)
Battery Storage (BESS) and Hydro Pump Storage (HPSP) India’s Storage Capacity Mix for FY 2031-32 JSW Energy Battery Energy Storage System (BESS) • Build Own Operate Transfer (BOOT) with tenure of 12 years National Electricity Plan 2023 • Battery Storage Purchase Agreement for 60% of the capacity wit
Slide 30: Electrons to Molecules: Green Hydrogen Potential
Electrons to Molecules: Green Hydrogen Potential Advantage India JSW Energy • Contracted India’s largest Significant Hydrogen demand Huge RE potential Low Tariffs Commercial Scale Plant for Current demand ~6 MMT expected Existing RE capacity of ~191 GW RE tariffs in India production of Green H2 to g
Slide 31: Generation Capacity - Locked-in 19 GW
Generation Capacity - Locked-in 19 GW Generation (MW) Installed Capacity to Double 2.1 GW to be PPAs signed 19 GW commissioned by FY2025 10 GW Strategy 2.0 – Generation Capacity 20 GW & Energy Storage of 40 GWh before 2030 JSW Energy Corporate Presentation Nov-24 ^ Pipeline: Projects where LoA/LoI i
Slide 32: Exclusively Renewable Project Pipeline
Exclusively Renewable Project Pipeline PPA Signed Letter of Award/Intent Received (PPA to be Signed) Project Contracted (MW) Installed (MW) Project Contracted (MW) Installed (MW) SJVN 700 700 SECI XV (Solar +ESS) 500 500 SECI XIII 700 700 Group Captive 60 60 NTPC 700 700 Total Solar 560 560 GUVNL 30
Slide 33: Energy Storage - Locked in 16.2 GWh
Energy Storage - Locked in 16.2 GWh BESS Plant to be PSP for MSEDCL to commissioned by be commissioned in June 2025 48 months 48 Months 40 Target 40 GWh by 2030 Strategy 2.0 – Generation Capacity 20 GW & Energy Storage of 40 GWh before 2030 JSW Energy Corporate Presentation Nov-24 33
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
Slide 35: 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 Selective bidding to ensure mid teen returns Successful integration of inorganic capacities One of the lowest project execution cost in the industry Sound operati
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
Slide 37: Robust Balance Sheet & Cashflows
Robust Balance Sheet & Cashflows Balance sheet headroom to pursue growth opportunities • Strong Financials Particulars As on Sept 30, 2024 Networth ₹ 27,970 Cr Net Debt ₹ 24,875 Cr Net Debt/TTM Proforma EBITDA 4.1x Net Debt/TTM Proforma EBITDA 2.2x (excl. under construction projects) Net Debt/Equity
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 27.9 Steady operations and robust financial 11,941 10,867 3,462 • 86% of portfolio tied-up under Long 20.8 21.9 3,237 17.7 8,736 2,570 Term PPA; Remaining Avg. Life of 2,395
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
Slide 40: JSW Energy – at a glance
Company Overview JSW Energy – at a glance 40 Acquired RE Portfolio Solar Plant- Raibag, Karnataka
Slide 41: Thermal Assets
Thermal Assets Ind Barath 700 MW Ratnagiri 1,200 MW Barmer 1,080 MW Vijayanagar 860 MW JSW Energy Corporate Presentation Nov-24 41
Slide 42: JSW Energy – Broad Corporate Structure
– Broad Corporate JSW Energy Company OverviewStructure Ratnagiri – 1,200 MW JSW Energy Limited Vijayanagar – 860 MW Hydro Entities Nandyal – 18 MW 19,210 MW Solar/Wind Entities Solar – 10MW Products & Services Total – 2,088 MW JSW Neo Energy JSWEBL – 1,080 MW 15,342 MW Utkal – 700 MW Energy Generati
Slide 43: Thermal Assets | Q2 FY25 Highlights
Thermal Assets | Q2 FY25 Highlights Offtaker Profile Operational Assets Open, Rajasthan, 34% 28% 3,858 MW MSDECL, Utkal Ratnagiri Barmer Vijayanagar 8% Group Captive, 30% 1,200 MW 1,080 MW 860 MW 700 MW Installed Capacity Unit 1 (350 MW) operational PPA tied 1,105MW 1,080 MW 338 MW Merchant Fuel Typ
Slide 44: Renewable Assets – 15.4 GW
Renewable Assets – 15.4 GW
Slide 45: JSW NEO Energy – At a Glance
Company JSW NEO Energy Overview (housing all Renewable assets) – At a Glance Generation Energy Storage Energy Products 15.4 GW 16.2 GWh Backward Integration Allotted 1 GW of solar wafer, cell and module (W-C-M) capacity under PLI Renewable Energy Storage scheme. Installed – 4,232 MW BESS – SECI 500M
Slide 46: 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) • Signed PPA for 12.0GWh (1.5 GW x 8 hours) PSP from MSEDL LoA received for 500MW/1000 MWh SECI project BESPA signed for 250MW/500 MWh with SECI in Mar-24 • Target commissioning
Slide 47: 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
Slide 48: 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
Slide 49: 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
Slide 50: 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 51: 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 52: 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 53: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in JSW Energy, Ratnagiri 53
Slide 54: Appendix
Appendix Acquired RE Portfolio Solar Plant (Hungund, Karnataka)
Slide 55: Consolidated Financial Results
Consolidated Financial Results H1 FY25 H1 FY24 Particulars in ₹ Crore Q2 FY25 Q2 FY24 6,502 6,401 Total Revenue 3,459 3,387 3,488 3,316 EBITDA 1,907 2,008 54% 52% EBITDA Margin(%) 55% 59% 767 807 Depreciation 392 409 1029 999 Finance Cost 518 514 1,691 1,510 Profit Before Tax 997 1,086 1,375 1,140 P
Slide 56: Operational Performance – Thermal
Operational Performance – Thermal Net Generation (MUs) PLF/CUF (%) Location (Current Capacity Change Change Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Capacity) (%) YoY YoY LT 91% 1,698 1,478 15% 3,327 3,140 6% 77 (*88) 67 (*88) 75 (*87) 72 (*94) Ratnagiri (1,200 MW) Total 100%
Slide 57: Operational Performance – Renewables
Operational Performance – Renewables Net Generation (MUs) PLF/CUF (%) Location (Current Capacity Change Change Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Capacity) (%) YoY YoY LT 97% 2,683 2,694 0% 4,422 3,828 16% 94 95 78 68 * Hydro (1,345 MW) Total 100% 2,916 2,766 5% 4,756 3,
Slide 58: Financial Results – Major Entities
Financial Results – Major Entities Entity-wise Revenue from Operations Particulars in ₹ Crore Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Standalone 967 1,133 2,017 2,617 JSW Energy (Barmer) 746 727 1,385 1,367 JSW Energy Utkal 266 0 530 4 JSW Hydro Energy 466 691 786 988 Acquired RE Portfolio 559 607 991 1,025
Slide 59: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Cr (Unless mentioned otherwise) Quarter ended Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Reported PAT 180 272 290 850 231 351 522 853 Add: Depreciation 295 291 398 409 400 427 375 392 Add/(less): Deferred Taxes 14 24 55 89 (4) (92) 61 (4) (Less): Div