JSW Energy Limited JSWInvestor Steel Presentation Limited November, 2020 InvestorAugust, presentation 2020 Agenda
Company Focus on ESG Quarterly Highlights Appendix Overview
2 JSW Group – Overview
JSW Steel* JSW Energy*
• India’s leading integrated steel • Engaged across the value producer (Installed crude steel chain of power business production capacity: ~18 • Operational capacity: 4,559 MTPA) MW • Market capitalisation of • Market capitalisation of US$10.6 bn(a) US$1.3bn(a)
JSW Infrastructure JSW Cement
• Engaged in development • Manufacturer of Portland Slag and operations of ports Cement (PSC), Ordinary • Operational capacity 113 Portland Cement (OPC) and MTPA Ground Granulated Blast Furnace Slag (GGBS) • Operational capacity of 14 MTPA JSW Paints
• Commenced operations in March 2019 • Annual operating capacity of 125,000 KL • Fully automated coil coating capacity • Only fully-automated, water- based plant in India
USD 12 Billion Group – Presence Across the Core Sectors
* Listed company (a) USD/ INR = 74.3 Source: RBI reference rate as on Nov 5, 2020; Market Cap as on Nov 7, 2020 3 JSW Energy – Presence across the value chain
. Current Installed Power . Operational Transmission Power Line – JV with MSETCL1: two Capacity: 4,559 MW Generation Transmission 400KV transmission lines
. Handling trading volume Power Trading Mining . Producing 6-7 MTPA Lignite in of ~1 Bn units Barmer through BLMCL2
Amongst the Largest Private Independent Power Producers in India
(1) Maharashtra State Transmission Company Ltd. (2) BLMCL is a 49:51 JV between JSW Energy (Barmer) Ltd (100% subsidiary of JSW Energy) and Rajasthan Government undertaking 4 Leading IPP with ~4.6 GW of Installed Generation Capacity
Baspa II: 300MW & Karcham Wangtoo: 1,091MW 4 • Configuration: 3x100MW (Baspa II) ; 4x272.75MW Barmer: 1,080MW (Karcham) • Configuration: 8 X 135MW • Units operating: Baspa II since 20033 and Karcham • Units operating: since 20093 Wangtoo since 20113 • Technology: Sub-critical pithead Lignite based TPP • Technology & Fuel Source: Hydro • Fuel Source: Captive Lignite mines of BLMCL1 • Power Offtake: Long Term PPA • Power Offtake: Long Term PPA • Asset Value to JSW Energy: INR 9,275 Crore/ 1,249mn2 • Project Cost: INR 7,165 Crore/ $965mn2 Kutehr: 240 MW (Under construction) • 3x80MW Hydro Power Plant under construction Ratnagiri: 1,200MW • PPA under finalization with Haryana Discom • Configuration: 4 X 300MW • Units operating: since 20103 • Technology: Sub-critical TPP Salboni: 18 MW (Under construction) • Fuel Source: Imported Thermal Coal • Power Offtake: Long Term PPA & Merchant • 1x18MW TPP under construction • Project Cost: INR 5,516 Crore/ $743mn2 Nandyal: 18 MW • 1x18MW Thermal Power Plant Vijayanagar: 860 MW • LT PPA under Group Captive scheme • Configuration: 2 X 130MW and 2 X 300MW • Units operating: since 20003 • Technology: Sub-critical TPP Solar: 10 MW • Fuel Source: Imported Thermal Coal & Gas • Power Offtake: Long Term PPA & Merchant • Ground based and rooftop solar power projects across • Project Cost: INR 3,096 Crore/ $417mn2 various locations with captive power tie-up within JSW Group
Well Diversified Fuel/Geography/Offtaker Mix
(1) Long term FSA with BLMCL for supply of lignite from its captive mines (2) USD/ INR = 74.3 Source: RBI reference rate as of Nov 5, 2020 (3) Denotes start of first unit in respective calendar year; TPP – Thermal Power Plant 5 (4) Current approved operational capacity at 1,000 MW. Pending CEA approval for uprating to 1,091 MW Proven Track Record
FY12 FY20
Capacity (MW) 2,600 4,559 . CAGR FY12–20: 7%
Net Generation (MUs) 13,594 21,252 . CAGR FY12–20: 6%
Total Revenue INR 6,265 Crore / $844mn1 INR 8,560 Crore / $1,153mn1 . CAGR FY12–20: 4%
EBITDA INR 1,594 Crore/ $215mn1 INR 3,244 Crore/ $437mn1 . CAGR FY12–20: 9%
PAT INR 170 Crore/ $23mn1 INR 1,100 Crore/ $146mn1 . CAGR FY12–20: 26%
Thermal Coal, Lignite, Hydro, Fuel Type Thermal Coal . Diversifying fuel sources Solar
Power Generation, O&M, Power Generation, O&M, Business Segment Transmission, Trading, Coal Transmission, Trading, Coal . Presence across the value chain Mining Mining
Delivering Sustainable Growth driven by Focused Execution and Financial Prudence
(1) USD/ INR = 74.3 Source: RBI reference rate as of Nov 5, 2020 6 Project Execution Expertise Driving Efficient Capital Allocation
Project cost of select Thermal/Lignite power plants set up by other players in the industry
Project Location Capacity Project cost 1st COD MW INR Crore/MW $mn/MW2 Year Nigrie 1,320 7.92 1.07 2014 Barmer 1 (2010-2013): Giral 250 7.69 1.04 2011 Ratnagiri 1,080 MW @ Janjgir-Champa 1,200 7.02 0.95 2014 INR 6.63 Crore1/MW (2011-2012): 1 1,200 MW @ (~$0.89mn/MW)2 Barsingsar 250 7.00 0.94 2010 Vijayanagar INR 4.60 Crore/MW Warora 600 6.25 0.84 2013 (2010): (~$0.62mn/MW)2 600 MW @ Padampur 540 6.18 0.83 2013 INR 3.28 Crore/MW Chandrapur 600 6.22 0.84 2014 Vijayanagar (~$0.44mn/MW)2 (2000-2001): Amarkantak 600 5.23 0.70 2009 260 MW @ INR 4.34 Crore/MW Maithon 1,050 5.24 0.71 2011 2 (~$0.58mn/MW) Kasaipalli 270 5.00 0.67 2011 Udupi 1,200 4.67 0.63 2010
(1) High capital cost due to CFBC boilers for lignite based power plant (2) USD/ INR = 74.3 Source: RBI reference rate as of Nov 5, 2020 7 Source: Respective Company filings Diversified and Balanced Portfolio of Efficient Operating Assets
Portfolio well-diversified across fuel Improving LT PPA tie-up rendering high cash flow visibility; sources ~98% of LTPPA under two-part tariff (fuel cost/forex pass through)
5,000 90.0% • Imported coal 80.4% 81.4% • Lignite 75.0% • Hydro 4,000 64.5% 70.0% 3,579 3,638 • Renewable (RE) - Solar 3,328
3,000 2,866 50.0%
0.2% RE 2,000 30.0% 30.5% FY17 FY18 FY19 FY20 Hydro LT PPA (MW) LT PPA (%) 23.7% Lignite Sound operating efficiency characterised by falling O&M Cost/MW; 45.6% Imported coal Further, one among the lowest O&M cost in the sector
Period FY17 FY18 FY19 FY20 4,559 MW
O&M Expenses (INR Lakh/MW) 19.4 19.3 18.7 17.9
8 Robust Balance Sheet
Net Debt* (` Crore) Net Worth (` Crore)
12,467 13,037 11,928 11,756 11,646 12,202 10,221 9,702 9,530 8,945 8,493 7,671
Jun/19 Sep/19 Dec/19 Mar/20 Jun/20 Sep/20 Jun-19 Sep-19 # Dec-19 Mar-20 # Jun-20 Sep-20
Leverage Ratios Wt. Average Cost of Debt Net Debt*/Equity Net Debt*/TTM EBITDA
9.20% 9.20% 3.16 9.13% 9.12% 2.95 2.99 2.76 2.65 2.44 8.44% 8.33%
0.86 0.83 0.76 0.77 0.70 0.59
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20
Amongst the strongest balance sheets in the sector - Well positioned to pursue growth opportunities
* Excluding short term working capital debt/acceptances # Impact due to change in value of listed equity investments through Other Comprehensive Income. Sep-19 data also includes impact of Dividend payout 9 All figures are for Consolidated entity Healthy Margins and Return Ratios
FY20 EBITDA Margin1 FY20 Return on Capital Employed2 (RoCE) 45% 9.5% 9.7% 38% 8.4% Average Average 31% 7.8% 29% 32% 7.0% 27% 6.5% 25% 5.8%
JSW Energy Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 JSW Energy Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
Source: Stock exchange filings – FY20 results; (1) Calculated as EBITDA/ Revenue, where EBITDA includes Other Income (2) Calculated as EBIT/ Average Capital Employed 10 Amongst the Strongest Balance Sheet in the Power sector
FY20 Net Debt/Equity (x) FY20 Net Debt/EBITDA1 (x) 8.4 7.6 7.7
5.8 Average 5.4 5.6
4.2 Average 2.8 2.8 2.3 2.1 1.6 1.3 0.8
JSW Energy Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 JSW Energy Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
Source: Stock exchange filings – FY20 results; (1) EBITDA includes Other Income 11 Agenda
Company Focus on ESG Quarterly Highlights Appendix Overview
12 Sustainability Targets – Our Ten Commitments
Focus Areas Make our operations Carbon Neutral by 2050
Climate Change Reduce our energy Enhance the Reduce our carbon intensity and renewable power to emissions by more auxiliary power 2/3rd of our Total than 50% consumption by Installed Capacity Water more than 50% Security
Waste 10Years Reduce our water Maintain a ‘ZERO Maintain 100% Management consumption per unit LIQUID DISCHARGE’ recycling of fly ash Cleaner of energy produced by for all our power and wastes generated Power 50% plants from our operations Roadmap Air Emissions (2020-30) Reduce the Reduce the dust emissions of Oxides Achieve a ‘no net emissions, per unit of of Sulphur and loss’ of biodiversity energy produced, by Nitrogen, per unit of at all our operating Biodiversity 2/3rd energy produced, by sites 60%
Committed to set science based emission reduction targets to keep global warming to 1.5°C under SBTi1
1- Collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) 13 Committed to Responsible Stewardship through Sustainability
3.25x 14.41% rise NET SOLAR POWER GENERATION IN NET HYDRO POWER GENERATION
7.17% 26.72% REDUCTION IN DIRECT EMISSIONS REDUCTION IN TOTAL WATER CONSUMED
100% Zero Effluent Discharge AT ALL OUR SITES FLY ASH UTILISATION
training man-days 67,381 5.17 DIRECT BENEFICIARIES IMPACTED OF EXECUTIVE EMPLOYEES BY NET-POSITIVE SOCIAL, ENVIRONMENTAL & ECONOMIC CONTRIBUTION 3,50,000 MANGROVE SAPLINGS PLANTED OVER AN AREA OF 70 HECTARES. TOTAL 1,050,000 SAPLINGS PLANTED TILL DATE
Figures are for FY20 14 Health & Safety Excellence Journey
Zero Severe/Major Injuries REPORTED AT OUR SITES
Zero Lost Time Injuries (LTIs) REPORTED AT OUR SITES
50,000+ Safety Observations INFLUENCING POSITIVE SAFETY BEHAVIOR OF OUR WORKFORCE
3,200+ Safety Training Units 5 SAFETY E-LEARNING MODULES LAUNCHED COVERING HIGH RISK AREAS
• 10 JSW Critical Safety Rules’ introduced across all Sites. These rules cover the most critical safety hazards & were crafted based on learning from past incidents
• Technology & Digitization for Safety compliance: New Group Safety Mobile App for Safety Observations (SOs) & Incident tracking introduced. Digital tool for Safety Inspection to enable tracking of findings & closure rate
Figures are for H1FY21 15 Key ESG Updates – Q2FY21
• Aspiring to become a leading Renewable Energy Company : Adopted Carbon Neutrality and Sustainability Targets & Policies
• A Sustainability Committee of the Board of Directors has been constituted to review progress of the Company’s Governance business responsibility and sustainability initiatives ; Committee is comprised of Two Independent Directors and one Executive Director
• The Company is a member of FTSE4Good Index Series by FTSE Russell
• DuPont Sustainable Solutions released a case study on ‘Visible Felt Leadership in Safety Excellence at JSW Energy (Barmer) Ltd’ • Safety Excellence continues with the achievement of following ‘Accident Free Operations’:
Safety Accident Free Operations (Man-Days) Ratnagiri Vijayanagar Barmer Karcham Wangtoo Baspa 1,136 811 1,340 859 5,809
• The Company committed to a long-term target to reach net-zero emissions by not later than 2050, backed up by Environment interim science-based targets, under SBTi1
1- Collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) 16 Agenda
Company Focus on ESG Quarterly Highlights Appendix Overview
17 Key Highlights for Q2FY21 (1/2)
• The Company’s overall Long Term (LT) Net Generation increased by 10% YoY; LT Net Thermal Generation increased by 20% YoY Operational • Overall Thermal PLF for capacity under LT PPA increased to 78% from 65% YoY; PLFs for capacity under LT PPA improved across all thermal plants • Consolidated EBITDA at `985 Crore
• Consolidated PAT at `352 Crore Financial • Net Debt1 reduced by `822 Crore in Q2FY21 and by `1,274 Crore in H1FY21 • Net Debt1 to Equity at 0.59x • Net Debt1 to EBITDA (TTM) at 2.44x • Receivables declined YoY amidst challenging business environment and Covid-19 situation
• JSW Solar Ltd (100% subsidiary) received Letter of Awards for setting up total Blended Wind capacity of 810 MW from Solar Energy Corporation of India (SECI) Update on • Haryana Electricity Regulatory Commission approved the power procurement offer of JSW Energy (Kutehr) Ltd for supply of Growth Projects 240 MW hydro power; PPA under finalization
• The resolution plan submitted by the Company for Ind-Barath Energy (Utkal) Ltd is pending approval by the National Company Law Tribunal
1- Excluding short term working capital debt/acceptances 18 Key Highlights for Q2FY21 (2/2)
• The Company committed to a long-term target to reach net-zero emissions by not later than 2050, backed by science-based targets, under SBTi1
• A Sustainability Committee of the Board of Directors has been constituted to review progress of the Company’s ESG business responsibility and sustainability initiatives
• DuPont Sustainable Solutions published a case study on ‘Visible Felt Leadership in Safety Excellence at JSW Energy (Barmer) Ltd’
• JSW Group’s Unit CPP 4 - 300 MW at Vijayanagar, whose Operation and Maintenance (O&M) is undertaken by the Company, set a national record by running continuously for 711 days
Awards and • The Company’s Ratnagiri and Vijayanagar plants were recognized as ‘Energy Efficiency Unit’ at the CII National Recognition Award for Excellence in Energy Management
• The Company won 33 Gold and 2 Silver awards in Chapter Convention of Quality Circles (CCCQ) 2020 organized by Quality Circle Forum of India
1- Collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) 19 Operational Performance – Net Generation
Net Generation Location Capacity Q2FY21 Q2FY20 Change YoY H1FY21 H1FY20 Change YoY % MUs MUs % MUs MUs % Vijayanagar (860 MW) LT 34% 497 484 +3% 862 961 -10% Total 100% 559 701 -20% 964 1,362 -29% Ratnagiri (1,200 MW) LT 77% 1,387 1,241 +12% 2,689 2,660 +1% Total 100% 1,434 1,781 -19% 2,819 3,735 -25% Barmer (1,080 MW) LT 100% 1,719 1,281 +34% 3,211 2,661 +21% Nandyal (18 MW) LT 100% 25 9 38 9 LT 73% 3,628 3,014 +20% 6,800 6,290 +8% Total Thermal (3,158 MW) Total 100% 3,737 3,772 -1% 7,033 7,766 -9% Hydro (1,300 MW)* LT 100% 2,913 2,926 0% 4,544 4,794 -5% Solar (9 MW) LT 100% 3 3 +1% 5 7 -19%
LT 81% 6,543 5,941 +10% 11,350 11,086 +2% TOTAL Total 100% 6,653 6,700 -1% 11,582 12,567 -8%
Overall Long Term Net Generation up 10% YoY in Q2 FY21
* Includes free power to HPSEB LT : Long Term 20 Operational Performance – PLF
PLF
Location Capacity Q2FY21 Q2FY20 H1FY21 H1FY20 Remarks – Q2 FY21
% % % % %
Vijayanagar (860 MW) LT 34% 84 (*84) 81 (*81) 73 (*73) 81 (*81) Higher offtake by long term customers
Total 100% 32 (*32) 40 (*40) 28 (*28) 39 (*39) Lower short term sales
Ratnagiri (1,200 MW) LT 77% 74 (*101) 67 (*100) 73 (*102) 73 (*99) Higher offtake by long term customers
Total 100% 59 (*71) 74 (*76) 58 (*72) 78 (*80) Lower short term sales
Barmer (1,080 MW) LT 100% 80 (*86) 60 (*83) 75 (*85) 63 (*82) Higher offtake by long term customers
Nandyal (18 MW) LT 100% 69 (*81) 33 (*68) 53 (*89) 33 (*68) Higher offtake by long term customers
LT 73% 78 (*92) 65 (*89) 74 (*90) 69 (*89) Higher offtake by long term customers Total Thermal (3,158 MW) Total 100% 59 (*66) 60 (*69) 56 (*64) 62 (*66)
Hydro (1,300 MW) LT 100% 102 103 80 85 Healthy generation from hydro plants
Solar – Nandyal (5.5 MW) LT 100% 12 14 11 18
Solar – Salboni (3.5 MW) LT 100% 18 14 18 16
Thermal PLF for capacity under Long Term PPA increases YoY across all plants in Q2FY21
* Deemed PLF 21 Consolidated Financial Results
Q2 FY21 Q2 FY20 Particulars in ` Crore H1 FY21 H1 FY20
2,0001 2,232 Total Revenue 3,8861 4,696
985 1,048 EBITDA 1,812 1,909
49% 47% EBITDA Margin(%) 47% 41%
207 272 Interest 448 542
292 294 Depreciation 581 586
486 482 Profit Before Tax 783 782
352 353 Profit After Tax 565 597
666 671 Gross Cash Accruals2 1,183 1,222
2.14 2.15 Diluted EPS (`)3 3.44 3.64
1- Including Job work impact 2 - Computed as PAT+ Depreciation+ Deferred Taxes+ Exceptional items 3 - Not Annualized 22 Entity-wise Financial Results
Entity-wise Revenue from Operations Particulars in ` Crore Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 Standalone 6721 1,064 1,4761 2,206 JSW Energy (Barmer) 709 523 1,358 1,371 JSW Hydro Energy 539 516 873 904 JPTL 18 19 35 39 Consolidated* 1,939 2,119 3,744 4,531
Entity-wise EBITDA Particulars in ` Crore Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 Standalone 209 284 413 579 JSW Energy (Barmer) 250 274 526 526 JSW Hydro Energy 506 485 832 819 JPTL 17 18 34 38 Consolidated* 985 1,048 1,812 1,909
* After inter-company adjustments and eliminations 1- Including Job work impact 23 EBITDA Movement - Consolidated
Particulars in ` Crore
Resilience in profitability amidst challenging business environment
24 Net Debt Movement - Consolidated
Particulars in ` Crore
Net Debt* reduced by ~`1,274 Crore in H1FY21 Sufficient balance sheet headroom available to embark on growth projects
* Excluding short term working capital debt/acceptances 25 Trade Receivables
Consolidated Trade Receivables* (` Crore) • Receivables lower on YoY basis amidst challenging business environment and 2,244 Covid-19 situation 2,183 2,103 • No history of any bad debts from routine long term trade receivables
• Payment security mechanism in force for power tied under long term PPA with Discoms
• All plants placed favourably in States’ Merit Order Dispatch o Further, Hydro plants under ‘Must-run Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 status’ with no scheduling risk
* Includes Unbilled Revenue 26 Growth Vision and Strategy
JSW Energy aims to become a significant RE player Progress Update on RE
Identifying and securing sites, Right-Of-Way and 10.0 GW connectivity approvals
Mapping and identifying potential OEMs to partner 2.2x on the equipment side Hydro & RES, 60-70% Building organizational capabilities by hiring talent from leading RE companies & training existing manpower 4.6 GW Hydro & RES, Ensuring high quality off-takers with strong credit ~30% profile Thermal, Thermal, 30-40% Ensuring projects fit in our internal risk-return ~70% framework
Installed Capacity Medium Term Leveraging our past experience & track record in Target project execution with respect to both time & cost for upcoming projects
27 Update on Growth Projects
JSW Solar Ltd (100% subsidiary of the Company) received Letter of Awards for setting up a total Blended wind capacity of 810 MW from Solar Energy Corporation Limited (SECI) SECI-IX 810 MW Total Project Outlay: ~`4,700-4,800 Crore (~Debt:Equity :: 70:30) Construction period: Upto 24 months (from date of signing of PPA)
Haryana Electricity Regulatory Commission approved the power procurement offer of JSW Energy (Kutehr) Kutehr HEP Ltd for supply of 240 MW hydro power; PPA under finalization 240 MW Total Project Outlay: ~`2,750 Crore (~Debt:Equity :: 67:33) Project construction commenced ; Tentative COD : FY25
Ind-Barath Approval by National Company Law Tribunal continues to remain under process on the resolution plan 700 MW submitted by the Company for Ind-Barath Energy (Utkal) Ltd
28 Agenda
Company Focus on ESG Quarterly Highlights Appendix Overview
29 Indian Economy
• With unlocking of restrictions across India, economy has been Index of Industrial Production (IIP) recovering, from the sharp contraction witnessed in real GDP 20.0 in first quarter, as high-frequency indicators show improvement 0.0 Aug/19 Nov/19 Feb/20 May/20 Aug-20 • Contraction in IIP moderated during Q2FY21, Manufacturing -20.0 PMI touched an eight-year high in Sep’20 at 56.2 and GST -40.0 collections improved with a 4% and 10% YoY increase in Sep’20 and Oct’20 respectively -60.0
-80.0 Manufacturing Electricity General Index • Although CPI stood elevated at 7.34% in Sep’20, easing of Covid-19 led restrictions is expected to moderate food inflation in the near term. Monetary Policy Committee maintained its policy stance at ‘Accommodative’ at its Oct’20 meeting Real GDP Growth • Continued resilience in agriculture supported by healthy south- 10.00% 5.2% 4.4% 4.1% 3.1% west monsoon, resurgence of rural demand, and improvement 0.00% in power consumption, e-way bills, railway freight, auto sales Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 etc augurs well for revival of economy -10.00% • However, momentum of economic recovery continues to -20.00% remain vulnerable to risks of a second wave of Covid-19 -30.00% -23.9% infections and resulting localized lockdowns
Economic recovery underway as India unlocks
Source: Reserve Bank of India, Press Information Bureau – India 30 Power Demand
Power Demand Growth YoY • Post witnessing double digit YoY de-growth in April’20, May’20 and June’20, demand decline moderated in July’20 and August’20 to -4.2% and +10.1% +12.0% -2.4% YoY respectively +4.0% • In the month of September’20, demand grew by +2.0% -2.4% 4% YoY indicating a gradual recovery with easing -4.2% of lockdowns and restrictions
-8.0% -11.0% • As a result, demand declined by only 0.9% YoY -14.9% in Q2FY21 vis-à-vis a 16.2% YoY decline -18.0% witnessed in Q1FY21 -23.1% • Demand recovery continued in Oct’201 with a -28.0% double digit growth at ~10%, although with a low Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar base effect
FY21 YoY% FY20 YoY% FY19 YoY%
Power demand improves to pre-Covid levels in Sep’20
Source: Central Electricity Authority (CEA) ; Basis Provisional CEA Data Sep’20 1- Basis POSOCO Data 31 Power Generation
Power Generation Growth YoY Segment-wise Share in Generation
+10.8% 3.5% 3.3% 3.1% 3.8% 3.8% 4.3% +12.0% 6.6% 7.8% 9.2% 10.0% 10.6% 11.5% +4.0% 9.9% 9.6% 9.8% 11.2% +2.0% -1.8% 13.0% 14.3% -2.5%
-8.0% -10.0% -15.0% 80.1% -18.0% 79.3% 77.9% 75.1% -23.0% 72.5% 69.9%
-28.0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FY17 FY18 FY19 FY20 H1FY20 H1FY21 FY21 YoY% FY20 YoY% FY19 YoY% Thermal Hydro RES Other (Nuclear+Import)
In line with demand, generation growth picks up Share of Renewable energy in overall generation gradually and turns positive from Sep’20 increases YoY
Source: Central Electricity Authority (CEA), National Power Portal Basis Provisional CEA Data Sep’20 32 Installed Capacity Overview (1/2)
Sector-wise Installed Capacity Segment-wise Installed Capacity (As on September 30, 2020) (As on September 30, 2020)
Total: 89.2 GW # Total: 93.9 GW # Central, State, Total: 103.6 GW # +1560 MW * RES, +450 MW * 25.2% 27.8% -11 MW * 23.9%
Total: 231.3 GW # Total: 45.7 GW # Hydro, Thermal +415 MW * 12.3% , 62.0%
Private, 47.0% Nuclear, 1.8% Total: 6.8 GW # Total: 175.5 GW # +1536 MW *
In Q2FY21, Installed Capacity increased by ~2.0 GW, led by RES (+1.6 GW) and Thermal (+0.4 GW net) segments
Source: Central Electricity Authority (CEA) * Net capacity change during Q2FY21 # Refers to total installed capacity of respective segments 33 Installed Capacity Overview (2/2)
Overall Segment-wise Net Capacity Addition (GW) RES Segment-wise Net Capacity Addition (GW)
11.8 21.7 11.3 1.0 0.3 0.6 1.7 17.2 1.8 9.4 8.6 0.8 0.9 14.0 5.5 0.5 12.1 0.3 11.3 1.6 2.1 0.1 11.8 9.4 9.4 8.6 6.5 6.4 5.5 2.2 7.7 2.9 0.3 4.6 4.3 3.4 2.2 0.4 0.7 1.4
FY17 FY18 FY19 FY20 H1 FY21 FY17 FY18 FY19 FY20 H1 FY21
Thermal RES Hydro Nuclear Solar Wind Other RES
Renewable energy driving capacity addition in the ~2.2 GW RES capacity added in H1 FY21 led by country solar segment
Source: Central Electricity Authority (CEA) 34 Other Power Sector Highlights
• Measures taken by Govt. of India to provide liquidity to Distribution Companies (Discoms) to mitigate financial stress caused by Covid-19 pandemic: • Liquidity Infusion Scheme under ‘Aatmanirbhar Bharat Abhiyaan’ for Discoms • Liquidity package increased to `1.2 lakh Crore from `0.9 lakh Crore • PFC and REC have sanctioned ~`1.08 lakh Crore and disbursed ~`30,000 Crore to Discoms under this scheme till date1 • One-time relaxation provided to Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for extending loans to Discoms above limits of working capital cap of 25% of last year’s revenues under UDAY
• Green Term Ahead Market (GTAM) launched in India in Aug’20 – first exclusive product for renewable energy sector in the world • Buyers at GTAM to benefit from competitive prices and transparent and flexible procurement • Sellers to benefit by getting access to Pan India Market • Energy scheduled through GTAM contract considered as deemed RPO compliance of the buyer • ~270 MUs sold in GTAM on Indian Energy Exchange since launch2
Source: Press Information Bureau – India, Ministry of Power, REC limited, IEX 1- As on October 16, 2020 2- As on October 28, 2020 35 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 particular person. This presentation should not be construed as legal, tax, investment or other advice. This presentation is confidential, being given solely for your information and for your use, and may not be copied, distributed or disseminated, directly or indirectly, in any manner. Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law. 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The risks and uncertainties relating to these statements include, but are not limited to, (i) fluctuations in earnings, (ii) the Company’s ability to manage growth, (iii) competition, (iv) government policies and regulations, and (v) political, economic, legal and social conditions in India. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The information contained in this presentation is only current as of its date and has not been independently verified. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. None of the Company or any of its affiliates, advisers or representatives accept any liability whatsoever for any loss howsoever arising from any information presented or contained in this presentation. Please note that the past performance of the Company is not, and should not be considered as, indicative of future results. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation. None of the Company, any placement agent or any other persons that may participate in the offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India or the United States, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment therefore. Securities of the Company may not be offered, sold or transferred in to or within the United States absent registration under the United States Securities Act of 1933, as amended (the “Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state of other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the Securities Act. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India. 36 Thank You JSW Steel Limited
•InvestorAugust, 2020presentation