JSW Energy Limited Investor Presentation November 2017 Agenda - PowerPoint PPT Presentation

JSW Energy Limited Investor Presentation November 2017

Agenda Overview Value Proposition Operational Appendix Highlights 2

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 chain producer (Steel making capacity: 18MTPA) of power business (Operational plants’ capacity: 4,531MW^) JSW Cement: Manufacturer of PSC, OPC JSW Infrastructure : Engaged in development and GGBS cement (Operational plants’ and operations of ports (Operational capacity: capacity: 11.6MTPA) 70MTPA) Group market cap (USD 11,807 mn **) JSW Energy 2,162 JSW Steel 9,645 As on October 31, 2017 Listed company. ** USD / ` = 64.7745 (RBI reference rate as on October 31, 2017) • 3 • ^ Company has signed Share Purchase Agreement for acquisition of 500MW Bina thermal power project from JPVL and 1,000MW Tamnar thermal power project from JSPL •

JSW Energy – Presence across the value chain  Currently  Operational transmission line – JV with operational capacity : 4,531MW Power MSETCL : two 400KV transmission lines transmission Power generation  JV  Rajasthan with Toshiba, Japan for (lignite): Kapurdi Equipment Mining manufacturing of super-critical (operational with capacity of manufacturing steam turbines and generators 7MTPA) and Jalipa (under development) mines; mineable reserves of 441mn tonnes Power trading  Engaged in power trading since June 2006  Handled trading volume of ~4bn units in FY17 4

Established energy company with 4,531 MW operational capacity Baspa II (300MW) & Karcham Wangtoo (1,091MW)  Units operating: Baspa II since 2003 and Karcham Wangtoo since 2012  Technology & Fuel Source: Hydro Barmer: 1,080MW  Power Offtake : Long Term PPA and Merchant  Configuration : 8 X 135MW  Asset Value to JSW Energy: INR 92,750mn/ $1,546mn 2  Units operating: since 2010 3  Technology: Sub-critical pithead lignite based TPP  Fuel Source: Captive lignite mines of BLMCL 1  Power Offtake: Long Term PPA  Project Cost: INR 71,650mn/ $1,194mn 2 Ratnagiri: 1,200MW Vijayanagar: 860MW  Configuration : 4 X 300MW  Configuration : 2 X 130MW and 2 X 300MW  Units operating: since 2011 3  Units operating: since 2000 3  Technology: Sub-critical TPP  Technology: Sub-critical TPP  Fuel Source: Imported thermal coal  Fuel Source: Gas & imported thermal coal  Power Offtake: Long Term PPA & Merchant  Power Offtake: Long Term PPA & Merchant  Project Cost: INR 55,161mn/ $919mn 2  Project Cost: INR 30,957mn/ $516mn 2 Proximity to load centre/fuel source/infrastructural facilities 1) Long term FSA with BLMCL for supply of lignite from its captive mines; BLMCL is a 49:51 JV between Raj WestPower Ltd (subsidiary of JSW Energy) and Rajasthan government undertaking, 2) USD/ INR = 60, 3) denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant 5

Proven track record FY12 FY17  CAGR FY12 – 17: 12% Capacity (MW) 2,600 4,531  CAGR FY12 – 17: 10% Net Generation (MUs) 13,594 21,631  CAGR FY12 – 17 : 6% Total Revenue INR 62,654mn / $1,044mn INR 84,804mn / $1,413mn  CAGR FY12 – 17: 17% EBITDA INR 15,944mn/ $266mn INR 35,414mn/ $590mn  CAGR FY12 – 17: 30 % PAT INR 1,701mn/ $28mn INR 6,290mn/ $105mn  Profitable and dividend paying since listing  Diversifying fuel sources Fuel Type Thermal Coal Thermal Coal, Lignite, Hydro Power generation, O&M, Power generation, O&M,  Presence across the value chain Business Segment transmission, trading, coal mining transmission, trading, coal mining and equipment manufacturing and equipment manufacturing Despite turbulent sector dynamics, delivering sustainable growth driven by focused execution and balanced strategy USD/ INR = 60 6

Sound Corporate Governance  Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, compliance with regulations by the Company and its subsidiaries Audit Committee  Comprises of six Non-Executive Directors  Identifies qualifiedpersons and recommendsto the Board the appointment, removal and evaluationof Directors Compensation and  Responsible for drafting policy on specific remuneration packages for Executive Directors and approving the payment Nomination & of remunerationto managerial personnel Remuneration  Formulate criteria for independence of Director, evaluation of Independent Directors, policy on Board diversity Committee  Comprises of four Non-Executive Directors Stakeholders  Responsible for the functioning of the investor grievances redressal system Relationship  Comprises of three Non-Executive Directors Committee  Periodicallyreviews risk assessment and minimisationprocedures Risk Management Committee  Comprises of four Non-Executive Directors  Formulates and recommendsto the Board a CSR Policy including list of projects and programs Corporate Social  Responsibility (CSR) Strong commitmenttowards CSR Committee  Comprises of four Non-Executive Directors All key committees in place, having adequate independent director representation 7

Agenda Overview Value Proposition Operational Appendix Highlights 8

Value proposition Efficient Capital Allocation and Execution Capabilities 1 2 Portfolio of Efficient Operating Assets Diversified Fuel Tie-up 3 Balanced Mix of Off-take Arrangements 4 Robust Financial Profile 5 9

Efficient Capital Allocation and Execution Capabilities 1 Project cost of select power plants set up by other players in the industry 1 st COD Power project Capacity Project cost ` crore/MW MW $mn/MW Year Lanco (Amarkantak) 600 5.23 0.87 2009 Lanco (Udupi) 1,200 4.67 0.78 2010 Aryan Coal (Kasaipalli) 270 5.00 0.83 2011 Barmer Tata Power/DVC (Maithon) 1,050 5.24 0.87 2011 (2010-2013): Adhunik (Padampur) Ratnagiri 540 6.18 1.03 2013 1,080 MW @ (2011-2012): INR 66.34mn 1 /MW GMR EMCO (Warora) 600 6.25 1.04 2013 1,200 MW @ Vijayanagar (~$1.11mn/MW) GMR (Kamalanga ) 1,050 6.21 1.04 2013 INR 45.97mn/MW (2010): (~$0.77mn/MW) Dhariwal (Chandrapur) 600 6.22 1.04 2014 600 MW @ INR 32.78mn/MW Vijayanagar DB Power (Janjgir-Champa) 1,200 7.02 1.17 2014 (~$0.55mn/MW) (2000-2001): JPVL (Nigrie) 1,320 7.92 1.32 2014 260 MW @ 1 Neyveli (Barsingsar) 250 7.00 1.17 2010 INR 43.42mn/MW 1 (~$0.72mn/MW) Giral (Rajasthan) 250 7.69 1.28 2011 Leveraging upon strong project execution and project management expertise, and infrastructure 1) High capital cost due to CFBC boilers for lignite based power plant 10 USD/ INR = 60

2 Portfolio of Efficient Operating Assets  JSW Energy Standalone PLF JSW Energy Standalone 1 Among the best run thermal power plants in India on a All India private sector thermal power plants' PLF* consistent basis 93%  84% Vijayanagar plant has been consistently recognised as a 83% 81% top performing operating power plant by the Ministry of 64% 62% 61% 62% 61% 61% 56% 56% Power for 8 consecutive years 2  PLF in the recent past has been low due to lack of schedule FY13 FY14 FY15 FY16 FY17 6M FY18 RajWest Hydro RajWest 3 and Hydro 94% 86% 86% 85% 85% 85%  84% Highest ever generation in Hydro Plants in First Half of FY 82% 78% 69% 18 24% 14% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Industry leading PLFs driven by O&M and execution expertise *Source-CEA 1) Includes Vijaynagar (860MW) and Ratnagiri (1,200MW) plants, 2) Vijaynagar’s SBU I (260MW) or SBU II (600MW) received either the Bronze Shield or 11 the Silver Shield in the category of ‘Performance of Thermal Power Stations’ for FY07/FY08/ FY09/ FY10/ FY11/FY14 and the Gol d Shield for FY12 and FY13, 3) Deemed PLF

Diversified Fuel Tie-up and balanced Mix of Off-take 3 4 Arrangements Power off-take arrangements – optimal mix of long term Fuel sources – contracts & merchant power sales (return optimisation) …. o Imported coal o Lignite Long term: o Hydro  Stable cashflows, pre-defined 35.4% returns  Insulated from inflation and fuel price movement, declining tariff 64.6% 31% Short term:  Ability to capitalise on better 24% realisations  Ability to respond to demand 45% fluctuations and shortages Long Term Short Term …. with aim to tie -up over 85% of capacity under long term PPAs Imported coal Lignite Hydro Lower fuel risk, resilience to sector dynamics 12

5 Robust Financial Profile FY17 EBITDA Margin (% 1 ) FY17 Return on Capital Employed (% 2 ) 45.9% 10.2% 41.8% 8.6% 37.4% 7.6% 6.9% 28.2% 6.4% 27.5% 26.6% 5.7% 19.4% 3.0% JSW Energy NTPC R Power CESC Adani Power Tata Power JPVL JSW Energy R Power JPVL NTPC Adani Power CESC Tata Power (Standalone) (Standalone) FY17 Return on Net Worth (%) 11.3% 6.3% 6.6% 6.4% 5.3%  Dividend paying track-record since listing in 2010 -14.5% -118% JSW Energy NTPC CESC Tata Power R Power JPVL Adani Power (Standalone) Sector leading margins and return ratios Source: Annual Reports for FY 2015-16 13 (1) Calculated as EBITDA/ Revenue, where EBITDA includes Other Income, (2) Calculated as EBIT/ Average Capital Employed (Net Worth + Minority Interest + Gross Borrowings + Net Deferred Tax Liabilities)