JSW Energy Limited Investor Presentation June 2019 Agenda - PowerPoint PPT Presentation

JSW Energy Limited Investor Presentation June 2019

Agenda Overview Value Proposition Operational Appendix Highlights 2

JSW Group – Overview USD 14 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: 4,541MW) JSW Cement: Manufacturer of PSC, OPC JSW Infrastructure : Engaged in development and GGBS cement (Operational plants’ and operations of ports (Operational capacity: capacity: 12.8MTPA) 75MTPA) Group Market Cap (USD 11,139 Million**) JSW Energy 1,673 JSW Steel 9,502 As on June 14, 2019 *Listed company. ** USD/ INR = 69 3

JSW Energy – Presence across the Value Chain  Currently  Operational Transmission Line – JV with Operational Capacity : 4,541 MW Power MSETCL : two 400KV transmission lines Power Transmission Generation  JV  Rajasthan (Lignite): Kapurdi and with Toshiba, Japan for Equipment Mining manufacturing of super-critical Jalipa mines (operational with Manufacturing steam turbines and generators capacity of 4.5MTPA and 6MTPA respectively) Power Trading  Engaged in power trading since June 2006  Handled trading volume of 2 Bn units in FY19 4

Established Energy Company with 4,541 MW Operational Capacity Barmer: 1,080MW Baspa II (300MW) & Karcham Wangtoo (1,091MW)  Configuration : 8 X 135MW  Units operating: Baspa II since 2003 and Karcham  Units operating: since 2010 3 Wangtoo since 2012  Technology: Sub-critical pithead Lignite based TPP  Technology & Fuel Source: Hydro  Fuel Source: Captive Lignite mines of BLMCL 1  Power Offtake : Long Term PPA  Power Offtake: Long Term PPA  Asset Value to JSW Energy: INR 92,750mn/  Project Cost: INR 71,650mn/ $1038mn 2 $1,344mn 2 Renewable Energy Under-construction Capacity  36 MW (18x2) Thermal Capacity under  Commissioned ~10 MW solar power projects across various locations construction in Nandyal (A.P.) and Salboni within JSW Group, and exploring other group captive capacities (W.B.); to be tied up under Group Captive LT PPA Ratnagiri: 1,200MW  Configuration : 4 X 300MW Vijayanagar: 860MW  Units operating: since 2011 3  Configuration : 2 X 130MW and 2 X 300MW  Technology: Sub-critical TPP  Units operating: since 2000 3  Fuel Source: Imported Thermal Coal  Technology: Sub-critical TPP  Power Offtake: Long Term PPA & Merchant  Fuel Source: Gas & Imported Thermal Coal  Project Cost: INR 55,161mn/ $799mn 2  Power Offtake: Long Term PPA & Merchant  Project Cost: INR 30,957mn/ $449mn 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 JSW Energy (Barmer) Ltd (subsidiary of JSW Energy) and Rajasthan 5 Government undertaking, 2) USD/ INR = 69, 3) denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant

Proven Track Record FY12 FY19  CAGR FY12 – 19: 8% Capacity (MW) 2,600 4,541  CAGR FY12 – 19: 7% Net Generation (MUs) 13,594 22,088  CAGR FY12 – 19 : 6% Total Revenue INR 62,654mn / $908mn INR 95,056mn / $1,378mn  CAGR FY12 – 19: 11% EBITDA INR 15,944mn/ $231mn INR 32,211mn/ $467mn  CAGR FY12 – 19: 22% PAT INR 1,701mn/ $25mn INR 6,845mn/ $99mn Thermal Coal, Lignite, Hydro,  Diversifying fuel sources Fuel Type Thermal Coal Solar 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 = 69 6

Sound Corporate Governance  Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, compliance with applicable regulations by the Company and its subsidiaries Audit Committee  Comprises of four Independent Directors and one Non-Executive Director  Identifies qualified persons and recommends to the Board the appointment, removal and evaluation of Directors Compensation and  Responsible for drafting policy on specific remuneration packages for Executive Directors and approving the payment Nomination & of remuneration to managerial personnel Remuneration  Formulate criteria for independence of Director, evaluation of Independent Directors, policy on Board diversity Committee  Comprises of three Independent Directors and one Non-Executive Director Stakeholders  Responsible for the functioning of the investor grievances redressal system Relationship  Comprises of one Independent Director, one Non-Executive Director and one Executive Director Committee  Periodically reviews risk assessment and minimisation procedures Risk Management Committee  Comprises of two Independent Directors, one non Executive Director and two Non-executive Directors  Formulates and recommends to the Board a CSR Policy including list of projects and programs Corporate Social  Responsibility (CSR) Periodically reviews the progress of CSR activities and programs Committee  Comprises of two Independent Directors, one Non-Executive Director and one Executive Director All key committees in place, having adequate Independent Director representation 7

Agenda Overview Value Proposition Operational Appendix Highlights 8

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

Efficient Capital Allocation and Execution Capabilities Project cost of select power plants set up by other players in the industry 1 st COD Power project Capacity Project cost INR NR mn/MW MW $mn/MW Year Lanco (Amarkantak) 600 2009 52.3 0.76 Lanco (Udupi) 1,200 2010 46.7 0.68 Aryan Coal (Kasaipalli) 270 2011 50.0 0.72 Barmer Tata Power/DVC (Maithon) 1,050 2011 52.4 0.76 (2010-2013): Adhunik (Padampur) Ratnagiri 540 2013 61.8 0.90 1,080 MW @ (2011-2012): INR 66.34mn 1 /MW GMR EMCO (Warora) 600 2013 62.5 0.91 1,200 MW @ Vijayanagar (~$0.96mn/MW) GMR (Kamalanga ) 1,050 2013 INR 45.97mn/MW 62.1 0.90 (2010): (~$0.66mn/MW) Dhariwal (Chandrapur) 600 2014 600 MW @ 62.2 0.90 INR 32.78mn/MW Vijayanagar DB Power (Janjgir-Champa) 1,200 2014 70.2 1.02 (~$0.48mn/MW) (2000-2001): JPVL (Nigrie) 1,320 2014 79.2 1.15 260 MW @ 1 250 Neyveli (Barsingsar) 2010 INR 43.42mn/MW 70.0 1.01 1 (~$0.62mn/MW) Giral (Rajasthan) 250 2011 76.9 1.11 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 = 69

Portfolio of Efficient Operating Assets JSW Energy Standalone PLF JSW Energy Standalone 1 All India Private Sector Thermal PLF*  93% Among the best-run private sector power plants in India 84% 83% 81% 65% 64% 62% 61% 61% 61% 59% 56%  55% 55% Sound operating efficiency characterised by one among the lowest O&M expenses in the sector FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 94% 94% 90% 86% 86% 86% 86% 85% 85% 85% 85% 83% 82% 82% Hydro Plants 80% 78% 69% Barmer 2 3 51% 24% 24% 24% 14% 14% 14% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Healthy PLFs driven by O&M and execution expertise *Source-CEA 1) Includes Vijaynagar (860MW) and Ratnagiri (1,200MW) plants 11 2) Deemed PLF 3) Lower PLF due to weak hydrology in Q1FY19

Diversified Fuel Tie-up and Balanced Mix of Off-take Arrangements Power off-take arrangements – optimal mix of Long term PPAs Fuel sources – and short term/ merchant sales.... o Imported coal o Lignite Long term: o Hydro  Stable cashflows, pre-defined 19.6% o returns Renewable (RE) 80.4%  Insulated from inflation and forex/fuel price movement 0.2% Short term: 30.6%  Ability to capitalise on better RE realisations Hydro 23.8%  Ability to respond to demand Lignite fluctuations and shortages Imported coal 45.4% Long Term Short Term … with clear visibility to increase the LT PPA proportion to 4,541MW over 88% from April, 2020 Low fuel and forex risk; Approval to blend upto 50% of domestic coal at Vijaynagar and Ratnagiri plants 12

Sound Financial Profile (1/2) FY19 Return on Capital Employed 2,3 (RoCE) FY19 EBITDA Margin 1 50% 9.8% 9.1% 8.6% 7.2% 6.8% 34% 6.5% 28% 28% 27% 23% JSW Energy Reliance Adani Power CESC NTPC Tata Power JSW Energy CESC Adani Power NTPC Reliance Tata Power Power Power Healthy Margins and Return Ratios Source: Stock exchange filings – FY19 results; 13 (1) Calculated as EBITDA/ Revenue, where EBITDA includes Other Income, (2) Calculated as EBIT/ Average Capital Employed (3) CPLTD for FY19 is basis FY18 for NTPC, CESC, Reliance Power, Adani Power