Jsw Energy Limited · NSE:JSWENERGY

Jsw Energy — Investor Presentation (May 2024)

65 slides from Jsw Energy's investor presentation, May 2024

  1. Slide 1: Delivering Promises, Realising True Potential

    Delivering Promises Realising True Potential Corporate Presentation | May 2024

  2. Slide 2: 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

  3. Slide 3: 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

  4. Slide 4: 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$ 11.9 Bn  Targeting 50 mtpa c

  5. Slide 5: JSW Energy: Transitioning towards green energy

    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

  6. Slide 6: JSW Energy – Presence Across the Value Chain

    JSW Energy – Presence Across the Value Chain Well placed to achieve 20 GW of generation capacity before 2030 Power Generation Energy Storage Energy Products & Services Wind, Thermal, 4.7 GW, 3.9 GW, 3.4 GWh of locked in capacity Solar Module, WTG manufacturing & Green H2 35% 29% Green Hydrogen Batte

  7. Slide 7: Well Diversified Portfolio – Focused on Maximising Cash Returns

    Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Generation 13,265 MW PPA to be Group signed *, Captive, Pipeline 26% 16% Installed 7,290 MW 3,425 MW 26% Solar 2,400 MW Open Installed Wind 1,025 MW Thermal 3,508 MW Current Exposure capacity – 1

  8. Slide 8: Developed a Pan India Footprint of Diverse Asset Base

    Developed a Pan India Footprint of Diverse Asset Base Installed and Under Construction Capacity (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 Diversified Offtakers 78 MW 700 M

  9. Slide 9: Agenda

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

  10. Slide 10: Safety & Sustainability

    Safety & Sustainability JSW Energy, Barmer

  11. 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: Committed to being carbon Enhance the renewable power No Net Loss for Biodiversity Independent Mr. Sunil Go

  12. Slide 12: Sustainability: Targets and Strategy

    Sustainability: Targets and Strategy FY20 Improvement FY30 FY24 Strategic Initiatives and Approach SD Targets Actuals (FY20 to FY30) Targets Actuals  TCFD – Identified associated short tem , medium term and Long term risks  GHG Emissions  Supply Chain Sustainability – development of Digital Platf

  13. Slide 13: Sustainability: FY24 Performance

    Sustainability: FY24 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate • Addition of 374 MW (FY24) renewable portfolio mix to reduce the GHG emission, Change a step towards our “ Net Zero” commitment by 2050 or earlier.

  14. Slide 14: 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

  15. Slide 15: Healthy Operations and Financials

    Healthy Operations and Financials Sholtu Hydro Power Plant - Turbine

  16. Slide 16: Operating Locations: Pan India presence

    Operating Locations: Pan India presence Current Operational Capacity (7,290 MW) Punjab Himachal Pradesh Wind Solar 50 MW 1,391 MW Thermal Hydro Rajasthan Madhya Pradesh 258 MW 1,080 MW 30 MW Diversified Offtakers 7,290 MW Gujarat Open Odisha Others, Capacity, Group 78 MW 350 MW 6% 15% Captive, 19% M

  17. Slide 17: Healthy Operations and Financials

    Healthy Operations and Financials Business model with steady cashflow generation despite sectoral headwinds 85% ~85% Net Generation (BUs) Total Income3 (₹ Crore) Capacity under LT PPA EBITDA contribution from LT 27.9 11,941 10,867 ~28BUs ₹ 3,237Cr 20.0 20.8 21.9 8,736 Net Generation Cash PAT 1 7,160

  18. 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 4.5x 1.3x $ Bn 2 Net Worth Net Debt Net Debt/EBITDA Net Debt/Equity 3.2 2.7 2.5 2.3 2.3 8.64% 54 2.0 Wt. average cost of debt * Receivable Days** 0.8 0.9 Figures as of Mar 31, 2024

  19. Slide 19: Net Debt Movement

    Net Debt Movement Particulars in ₹ Cr Capital Work- in-Progress (CWIP) Operational Projects 2,759 15 419 180 1,824 26,286 26,636 7,890 9,841 ND/EBITDA# 18,396 (excl. CWIP) at 2.9x 16,795 Net Debt as on New Debt Taken Forex restatement Repayment Movement in short Change in Cash Net Debt as on Dec 31,

  20. Slide 20: Why JSW Energy?

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

  21. 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  Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent

  22. 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  Being future-ready : New Energy Solutions including Energy storage (BESS & PSP) , green hydrogen, Sustainable growth ammonia and its derivatives Resilient Business, Consistent

  23. 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

  24. 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

  25. 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

  26. 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

  27. Slide 27: 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 2.7x 40GWh/5GW Energy Storage by FY30 • Sustainable value creation focused on Cash Returns 7.3 1GW Solar Module Manufacturing • Internal Accruals and BS Headroom (no external

  28. Slide 28: Robust Growth Pipeline

    Robust Growth Pipeline Generation (GW) Energy Storage (GWh) 19.44 20.00 Under-construction 6.20 3.40 0.24 0.30 9.84 LoA/LoI 77.1 0.72 0.21 0.74 7.29 0.35 received 40.0 2.4 3.4 2.7 1.0 PCKL SECI 2030 Target Locked-in with states PSP MoU MoU with JSW Steel Ind-Barath Operational SECI XII Operational S

  29. Slide 29: 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

  30. Slide 30: 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) National Electricity Plan 2023 • Build Own Operate Transfer (BOOT) with tenure of 12 years PSP BESS • Battery Storage Purchase Agreement for 60% of the cap

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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

  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: JSW Energy: Resilient Business Model

    JSW Energy: Resilient Business Model Opportunities Capability Capital  India's Ambitious Target 3.8 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

  36. Slide 36: Robust Balance Sheet & Cashflows

    Robust Balance Sheet & Cashflows Balance sheet headroom to pursue growth opportunities • Strong Financials Particulars As on March 31, 2024 Networth ₹ 20,832 Cr Net Debt ₹ 26,636 Cr Net Debt/TTM Proforma EBITDA 4.5x Net Debt/TTM Proforma EBITDA 2.9x (excl. under construction projects) Net Debt/Equit

  37. Slide 37: 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 3,237 21.9 10,867 • 85% of portfolio tied-up under Long 20.0 20.8 2,570 8,736 2,395 Term PPA; Remaining Avg. Life of 7,160

  38. Slide 38: 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

  39. Slide 39: JSW Energy – at a glance

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

  40. Slide 40: Thermal Assets

    Thermal Assets Ind Barath 700 MW Ratnagiri 1,200 MW Barmer 1,080 MW Vijayanagar 860 MW JSW Energy Corporate Presentation - May'24 40

  41. Slide 41: JSW Energy Company Overview – Corporate Structure

    – Corporate JSW Energy Company Overview Structure Ratnagiri – 1,200 MW JSW Energy Limited Vijayanagar – 860 MW Hydro Entities Nandyal – 18 MW 13,265 MW Solar/Wind Entities Solar – 10MW Products & Services Total – 2,088 MW JSW Neo Energy * JSWEBL – 1,080 MW 9,397 MW Ind-Barath – 700 MW Energy Generat

  42. Slide 42: Thermal Assets | FY24 Highlights

    Thermal Assets |FY24 Highlights Overview Offtaker Profile Operational Assets Open, Rajasthan, 34% 28% Total Thermal 3,858 Capacity 3,858* MW MW MSDECL, 8% Ratnagiri Barmer Vijayanagar Ind - Barath Group Captive, 30% Installed Capacity 1,200 MW 1,080 MW 860 MW 700 MW Unit 1 (350 MW) operational Opera

  43. Slide 43: Renewable Assets - 9.4 GW

    Renewable Assets - 9.4 GW

  44. Slide 44: JSW Energy Company Overview – Corporate Structure

    JSW Energy Company Overview – Corporate Structure Ratnagiri – 1,200 MW JSW Energy Limited Vijayanagar – 860 MW Hydro Entities Nandyal – 18 MW 13,265 MW Solar/Wind Entities Solar – 10MW Products & Services Total – 2,088 MW JSW Neo Energy * 9,397 MW JSWEBL – 1,080 MW (Installed – 3,772 MW) Ind-Barath

  45. Slide 45: JSW Neo Energy – Presence Across the Value Chain

    JSW Neo energy – Presence Across the Value Chain Power Generation Energy Storage Energy Products & Services Wind, Solar, 4.7 GW, 3.1 GW, 3.4 GWh of locked in capacity Solar Module, WTG manufacturing & Green H2 50% 33% Green Hydrogen Battery Storage & Derivatives 1.0 GWh 3,800 TPA Generation 9.4 GW W

  46. Slide 46: JSW NEO Energy Overview – At a Glance

    Company JSW NEO Energy Overview – At a Glance Generation Energy Storage Energy Products 9.4 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 – 3,772 MW BESS – SECI 500MW/1000MWh Electrons to Molecules U

  47. Slide 47: JSW Neo – Multiple Growth Drivers

    JSW Neo – Multiple Growth Drivers Generation (GW) 6.2 15.6 3.4 0.2 0.3 6.0 0.2 0.7 3.8 0.7 Total Operational SECI XII Operational MoU with SECI IX SECI X Captive Projects Kutehr Pipeline JSW Steel Wind Group Wind Wind Wind by CY24 Current Energy Products & Services Green Hydrogen • Contracted 3,800

  48. Slide 48: JSW Neo - Footprint of Diverse Asset Base

    JSW Neo - Footprint of Diverse Asset Base Installed and Under construction (5,972 MW) Punjab Himachal Pradesh Wind Hydro 50 MW 1,631 MW Solar BESS Rajasthan Madhya Pradesh Green Hydrogen PSP 258 MW 30 MW 1,000 MWh Gujarat JSW NEO – PPA Profile 78 MW Telangana, 7%AP, 6% Maharashtra Others, 8% HP, 5%

  49. Slide 49: 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 Company of Karnataka Ltd (PCKL) BESPA signed for 250MW/500 MWh with SECI

  50. Slide 50: 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

  51. Slide 51: 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

  52. Slide 52: 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

  53. Slide 53: 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

  54. Slide 54: 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

  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: Investor Relations Contact

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

  57. Slide 57: Appendix

    Appendix Acquired RE Portfolio Solar Plant (Hungund, Karnataka)

  58. Slide 58: Consolidated Financial Results

    Consolidated Financial Results FY24 FY23 Particulars in ₹ Crore Q4 FY24 Q4 FY23 11,941 10,867 Total Revenue 2,879 2,806 5,837 3,817 EBITDA 1,292 881 49% 35% EBITDA Margin(%) 45% 31% 1,633 1,169 Depreciation 427 291 2,053 844 Finance Cost 533 233 2,150 1,924 Profit Before Tax 332 357 1,723 1,478 Prof

  59. Slide 59: Operational Performance – Net Generation

    Operational Performance – Net Generation Net Generation (MUs) Capacity Q4 FY24 Q4 FY23 Change YoY FY24 FY23 Change YoY Location (Current Capacity) % % % LT 91% 1,668 1,506 11% 6,491 5,123 27% Ratnagiri (1,200 MW) Total 100% 2,097 1,752 20% 7,850 5,713 37% Barmer (1,080 MW) LT 100% 1,754 1,730 1% 6,3

  60. Slide 60: Entity-wise Financial Results

    Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Crore Q4 FY24 Q4 FY23 FY24 FY23 Standalone 1,236 1,647 5,129 5,739 JSW Energy (Barmer) 809 748 2,880 3,026 Ind-Barath 123 NA 127 NA JSW Hydro Energy 171 186 1,370 1,328 Acquired RE Portfolio 294 4 1,574 4 JSW Renewabl

  61. Slide 61: Cash Returns on Adjusted Net Worth

    Cash Returns on Adjusted Net Worth ₹ Cr (Unless mentioned otherwise) Quarter ended Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Reported PAT 560 466 180 272 290 850 231 351 Add: Depreciation 289 294 295 291 398 409 400 427 Add/(less): Deferred Taxes 84 42 14 24 55 89 (4) (92) (Less): Divi

  62. Slide 62: Progress on Acquired RE Portfolio

    Acquired RE Portfolio Progress on Acquired RE Portfolio Track Asset Optimisation & Performance Improvement progressing well JSW Energy Acquired Corporate RE Portfolio WindPresentation - May'24 (Chakla Maharashtra) 62

  63. Slide 63: JSW Neo - Acquired RE Portfolio

    JSW Neo - Acquired RE Portfolio Net Generation (MUs) PLF Wind Solar Operational Highlights 594 613 3,337 • Net generation increased 3% YoY in 2,980 Q4 FY24 driven by higher machine 208 199 756 721 Solar availability in wind, partly offset by Wind lower solar radiation 414 2,581 386 2,259 • For FY24

  64. Slide 64: Acquired RE – FY24 Performance Improvement On Track

    Acquired RE – FY24 Performance Improvement On Track Wind Generation (MUs) 36 Wind Machine Availability (%) 302 2,581 3 9 4 +900 bps 96.9% +710 bps 2,259 96.1% 87.9% 89.0% 335 MUs increased due to focused interventions FY 2023 MA Benefit GA Loss Maniyachi Cyclone Wind FY 2024 Q4 FY23 Q4 FY24 FY2023 F

  65. Slide 65: Receivables Cycle Improving

    Receivables Cycle Improving Strong collection in Acquired RE Portfolio’s Receivables* Particulars in ₹ Cr 797 50% YoY improvement 403 399 Mar-23 Dec-23 Mar-24 Focused O&M Interventions leading to strong billing/collection growth 158% 145% Strong generation and billing 97% 106% growth Continued focus

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