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

JSW Energy Limited

Investor Presentation

June 2019

2

Agenda Overview Value Proposition Operational Highlights Appendix

3

*Listed company. ** USD/ INR = 69

JSW Group – Overview

USD 14 Billion group with presence across the core sectors

JSW Steel*: India’s leading integrated steel producer (Steel making capacity: 18MTPA) JSW Energy*: Engaged across the value chain

• f

power business (Operational plants’ capacity: 4,541MW) JSW Infrastructure: Engaged in development and operations of ports (Operational capacity: 75MTPA) JSW Cement: Manufacturer of PSC, OPC and GGBS cement (Operational plants’ capacity: 12.8MTPA)

JSW Steel 9,502 JSW Energy 1,673

Group Market Cap (USD 11,139 Million**)

As on June 14, 2019

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JSW Energy – Presence across the Value Chain

Power Generation Power Transmission Power Trading Equipment Manufacturing Mining

• Engaged in power trading since June 2006
• Handled trading volume of 2 Bn units in FY19
• Operational Transmission Line – JV with

MSETCL: two 400KV transmission lines

• Currently

Operational Capacity: 4,541 MW

• JV

with Toshiba, Japan for manufacturing of super-critical steam turbines and generators

• Rajasthan (Lignite): Kapurdi and

Jalipa mines (operational with capacity of 4.5MTPA and 6MTPA respectively)

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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 Government undertaking, 2) USD/ INR = 69, 3) denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant

Established Energy Company with 4,541 MW Operational Capacity

Proximity to load centre/fuel source/infrastructural facilities

Vijayanagar: 860MW

• Configuration: 2 X 130MW and 2 X 300MW
• Units operating: since 20003
• Technology: Sub-critical TPP
• Fuel Source: Gas & Imported Thermal Coal
• Power Offtake: Long Term PPA & Merchant
• Project Cost: INR 30,957mn/ $449mn2

Ratnagiri: 1,200MW

• Configuration: 4 X 300MW
• Units operating: since 20113
• Technology: Sub-critical TPP
• Fuel Source: Imported Thermal Coal
• Power Offtake: Long Term PPA & Merchant
• Project Cost: INR 55,161mn/ $799mn2

Barmer: 1,080MW

• Configuration: 8 X 135MW
• Units operating: since 20103
• Technology: Sub-critical pithead Lignite based TPP
• Fuel Source: Captive Lignite mines of BLMCL1
• Power Offtake: Long Term PPA
• Project Cost: INR 71,650mn/ $1038mn2

Renewable Energy

• Commissioned ~10 MW solar power projects across various locations

within JSW Group, and exploring other group captive capacities

Baspa II (300MW) & Karcham Wangtoo (1,091MW)

• Units operating: Baspa II since 2003 and Karcham

Wangtoo since 2012

• Technology & Fuel Source: Hydro
• Power Offtake: Long Term PPA
• Asset Value to JSW Energy: INR 92,750mn/

$1,344mn2

Under-construction Capacity

• 36 MW (18x2) Thermal Capacity under

construction in Nandyal (A.P.) and Salboni (W.B.); to be tied up under Group Captive LT PPA

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USD/ INR = 69

Proven Track Record

Despite turbulent sector dynamics, delivering sustainable growth driven by focused execution and balanced strategy

FY12 FY19

• 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: 8%

Capacity (MW) 2,600 4,541

• Diversifying fuel sources

Fuel Type Thermal Coal Thermal Coal, Lignite, Hydro, Solar

• CAGR FY12–19: 7%

Net Generation (MUs) 13,594 22,088

• Presence across the value chain

Business Segment Power Generation, O&M, Transmission, Trading, Coal Mining and Equipment Manufacturing Power Generation, O&M, Transmission, Trading, Coal Mining and Equipment Manufacturing

• CAGR FY12–19: 22%

PAT INR 1,701mn/ $25mn INR 6,845mn/ $99mn

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Audit Committee

 Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, compliance with applicable regulations by the Company and its subsidiaries  Comprises of four Independent Directors and one Non-Executive Director

Compensation and Nomination & Remuneration Committee

 Identifies qualified persons and recommends to the Board the appointment, removal and evaluation of Directors  Responsible for drafting policy on specific remuneration packages for Executive Directors and approving the payment

• f remuneration to managerial personnel

 Formulate criteria for independence of Director, evaluation of Independent Directors, policy on Board diversity  Comprises of three Independent Directors and one Non-Executive Director

Stakeholders Relationship Committee

 Responsible for the functioning of the investor grievances redressal system  Comprises of one Independent Director, one Non-Executive Director and one Executive Director

Risk Management Committee

 Periodically reviews risk assessment and minimisation procedures  Comprises of two Independent Directors, one non Executive Director and two Non-executive Directors

Corporate Social Responsibility (CSR) Committee

 Formulates and recommends to the Board a CSR Policy including list of projects and programs  Periodically reviews the progress of CSR activities and programs  Comprises of two Independent Directors, one Non-Executive Director and one Executive Director

Sound Corporate Governance

All key committees in place, having adequate Independent Director representation

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Agenda Overview Value Proposition Operational Highlights Appendix

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Value Proposition

Efficient Capital Allocation and Execution Capabilities Portfolio of Efficient Operating Assets Diversified Fuel Tie-up Balanced Mix of Off-take Arrangements Sound Financial Profile

1 2 3 4 5

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Project cost of select power plants set up by other players in the industry

1) High capital cost due to CFBC boilers for lignite based power plant USD/ INR = 69

Efficient Capital Allocation and Execution Capabilities

Vijayanagar (2000-2001): 260 MW @ INR 43.42mn/MW (~$0.62mn/MW) Vijayanagar (2010): 600 MW @ INR 32.78mn/MW (~$0.48mn/MW) Ratnagiri (2011-2012): 1,200 MW @ INR 45.97mn/MW (~$0.66mn/MW) Barmer (2010-2013): 1,080 MW @ INR 66.34mn1 /MW (~$0.96mn/MW)

Leveraging upon strong project execution and project management expertise, and infrastructure

Power project Capacity Project cost 1st COD MW

INR NR mn/MW $mn/MW Year

Lanco (Amarkantak) 600

52.3 0.76 2009

Lanco (Udupi) 1,200

46.7 0.68 2010

Aryan Coal (Kasaipalli) 270

50.0 0.72 2011

Tata Power/DVC (Maithon) 1,050

52.4 0.76 2011

Adhunik (Padampur) 540

61.8 0.90 2013

GMR EMCO (Warora) 600

62.5 0.91 2013

GMR (Kamalanga ) 1,050

62.1 0.90 2013

Dhariwal (Chandrapur) 600

62.2 0.90 2014

DB Power (Janjgir-Champa) 1,200

70.2 1.02 2014

JPVL (Nigrie) 1,320

79.2 1.15 2014

Neyveli (Barsingsar)

1

250

70.0 1.01 2010

Giral (Rajasthan)

1

250

76.9 1.11 2011

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JSW Energy Standalone1

93% 81% 83% 84% 61% 59% 65% 64% 62% 61% 61% 56% 55% 55% FY13 FY14 FY15 FY16 FY17 FY18 FY19

JSW Energy Standalone PLF All India Private Sector Thermal PLF*

*Source-CEA 1) Includes Vijaynagar (860MW) and Ratnagiri (1,200MW) plants 2) Deemed PLF 3) Lower PLF due to weak hydrology in Q1FY19

Portfolio of Efficient Operating Assets

 Among the best-run private sector power plants in India  Sound operating efficiency characterised by one among the lowest O&M expenses in the sector

Healthy PLFs driven by O&M and execution expertise

Barmer2 Hydro Plants

85% 86% 85% 82% 86% 83% 82% 85% 86% 85% 80% 86% Q1 Q2 Q3 Q4

FY17 FY18 FY19

69% 94% 24% 14% 78% 90% 24% 14% 51% 94% 24% 14% Q1 Q2 Q3 Q4

FY17 FY18 FY19

3

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Diversified Fuel Tie-up and Balanced Mix of Off-take Arrangements

Low fuel and forex risk; Approval to blend upto 50% of domestic coal at Vijaynagar and Ratnagiri plants Fuel sources –

• Imported coal
• Lignite
• Hydro
• Renewable (RE)

45.4% 23.8% 30.6% 0.2%

4,541MW RE Hydro Lignite Imported coal

Power off-take arrangements – optimal mix of Long term PPAs and short term/ merchant sales....

Long term:  Stable cashflows, pre-defined returns  Insulated from inflation and forex/fuel price movement Short term:  Ability to capitalise on better realisations  Ability to respond to demand fluctuations and shortages

… with clear visibility to increase the LT PPA proportion to

• ver 88% from April, 2020

80.4% 19.6%

Long Term Short Term

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Source: Stock exchange filings – FY19 results; (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

Sound Financial Profile (1/2)

Healthy Margins and Return Ratios

FY19 EBITDA Margin1 FY19 Return on Capital Employed2,3 (RoCE)

9.1% 9.8% 8.6% 7.2% 6.8% 6.5% JSW Energy CESC Adani Power NTPC Reliance Power Tata Power 34% 50% 28% 28% 27% 23% JSW Energy Reliance Power Adani Power CESC NTPC Tata Power

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FY19 Net Debt1/Equity (x)

Source: Stock exchange filings – FY19 results (1) CPLTD for FY19 is basis FY18 for NTPC, CESC, Reliance Power, Adani Power, (2) EBITDA includes Other Income

Sound Financial Profile (2/2)

FY19 Net Debt/EBITDA2 (x)

Well capitalised Balance Sheet, adequately positioned to tap growth opportunities

0.9 1.4 1.4 1.8 2.3 6.1 JSW Energy CESC NTPC Reliance Power Tata Power Adani Power 3.1 4.3 6.2 6.3 7.0 7.1 JSW Energy CESC NTPC Adani Power Tata Power Reliance Power

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Agenda Overview Value Proposition Operational Highlights Appendix

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Key Highlights for Q4FY19 (1/2)

• Continued de-risking of the Business; Significant portion of open capacity tied up under short-term

power supply contracts in FY20

• Vijayanagar plant secured PPA for 300 MW from Telangana State for a period of 9 months

beginning July 1, 2019

• In L1 basket for 290 MW under Pilot Scheme–II of PFC/NHPC for 3 year PPA at Vijayanagar

plant

• Open capacity at Ratnagiri plant nearly fully tied up in H1FY20 through short term contracts
• Commissioning of 36 MW (2x18MW) Thermal Capacity at Salboni and Nandyal expected in Q1FY20

with long term PPA tied up under Group Captive scheme

• Focus on Balance Sheet strength continues; During the quarter Company reduced its Net Debt by

~₹636 Crore through prepayment/scheduled repayments; Net Debt to Equity at 0.85x

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Key Highlights for Q4FY19 (2/2)

• JSW Energy (Barmer) Ltd was awarded 1) INDIA-CSR Award for Livelihood Creation, 2) Economic

Times CSR Leadership Award, 3) Grow Care India Environment, Sustainability and Water Management Award

• The Company’s Vijayanagar plant was awarded ‘Certificate of Safety’ by Department of Factories,

Boilers, Industrial Safety and Health

• Electric Vehicle (EV) Business: Given higher than anticipated uncertainties associated with the EV

Business, the Company has decided not to pursue this business and maintain capital cushion for growth opportunities in power and other related businesses

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3,703 6,110 6,140 5,862 21,816 3,515 7,353 6,017 5,204 22,088

Vijayanagar Ratnagiri Barmer Hydro Total

FY18 FY19

FY Plant-wise Net Generation

1%

Q4 Plant-wise Net Generation

All figures are in MUs. * Deemed PLF, Hydro net generation numbers includes free power to HPSEB

Particulars Q4 FY19 Q4 FY18 FY19 FY18 Remarks (Q4 FY19)

PLF – Vijayanagar 37% 50% 50% 53% Lower short term sales, partly offset by higher LT sales PLF – Ratnagiri 76% (*80%) 61%(*64%) 76%(*79%) 64%(*69%) Higher offtake from both ST and LT customers PLF – Barmer * 86% 85% 84% 84% Consistent deemed PLF PLF – Hydro 14% 14% 46% 52% Consistent PLF Short term sales (MUs) 567 848 3,141 5,019 Lower primarily due to Vijayanagar

857 1,436 1,670 391 4,355 649 1,793 1,377 397 4,216

Vijayanagar Ratnagiri Barmer Hydro Total

Q4 FY18 Q4 FY19 24% 25% 2% 18% 3%

Power Generation

11% 2% 5% 20%

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• LT PPAs under Two-part Tariff scheme with full fuel cost

pass through insulates from forex/fuel price fluctuations

• Focus on improving operating efficiency through

innovation and adopting the best industry practices

• Sound operating efficiency characterised by one among

the lowest O&M expenses in the sector. Further, healthy reduction in the O&M expenses over the last 2 years in spite of wage increase/ inflation

FY17 Addition in FY18 FY18 Addition in FY19 FY19 3,328 MW 75.0% * +250.5 MW 2 3,578.5 MW 80.4% * 2,866 MW 64.5% * +462 MW 1

Sustained Improvement in Business Risk Profile

* Proportion of long term PPA to total capacity. Karcham Wangtoo capacity @ 1,000MW as currently approved 1) 86 MW PPAs tied at Ratnagiri and 376 MW PPAs (176 MW Haryana & 200 MW Punjab) tied at Karcham Wangtoo in FY18 2) 230MW and 20.5MW PPAs tied within the JSW Group at Vijayanagar and Ratnagiri plants respectively in FY19

High LT PPA mix rendering strong cash flow visibility

Improving LT PPA mix

Period FY17 FY18 FY19 O&M Expenses (`Lakh/MW) 19.4 19.3 18.7

Improving Operating efficiency

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Strong Pipeline of Capacity tie-ups

1) Pilot Scheme-II PPA at Vijayanagar not considered in calculation of Capacity Tied in FY20 2) Karcham Wangtoo capacity @ 1,000MW as currently approved 3) Expected commissioning in Q1FY20

Strong Pipeline of LT/ST PPAs Vijayanagar Plant:

• Secured PPA for 300 MW from Telangana State for a period
• f 9 months beginning July 1, 2019
• In L1 basket for 290 MW under Pilot Scheme–II of PFC/NHPC

for 3 year PPA; PPA yet to be tied

• Strong visibility to tie-up entire Open Capacity under LT PPA

within JSW Group over next 2-3 years Ratnagiri Plant:

• Open capacity nearly fully tied-up in H1FY20 via short-term

power supply contracts

• Open Capacity to be fully tied under LT PPA from April-2020

within JSW Group, after completion of JSW Steel’s Dolvi Plant expansion

Consolidated1 Ratnagiri Vijayanagar1 Hydro2 Barmer

Plants Capacity tied in FY20 Improving Capacity Tie-ups

100% ~90% ~88% ~63%

LT: ~82%, ST: ~8% LT: ~75%, ST: ~13% LT: ~37%, ST: ~26% LT: 100%

Salboni & Nandyal3 Solar

Capacity (MW)

4,486 1,200 860 1,300 1,080 36 10 100%

LT: 100%

100%

LT: 100%

100%

LT: 100%

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Consolidated Financial Results

# Not Annualized for Q4 * Includes Other Income ** Computed as PAT+ Depreciation+ Deferred Taxes+ Exceptional items

` Crore

Q4 FY19 Q4 FY18 Particulars FY19 FY18

2,018 1,879 Total Revenue* 9,506 8,514 570 525 EBITDA 3,221 3,228 28% 28% EBITDA Margin(%) 34% 38% 276 323 Interest 1,192 1,456 287 238 Depreciation 1,164 966 7 (454) Profit Before Tax 865 388 4 (483) Profit After Tax 695 78 301 146 Gross Cash Accruals ** 1,892 1,504 0.02 (2.95) Diluted EPS (`) # 4.24 0.48

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* Impact mainly due to change in value of listed equity investments through Other Comprehensive Income

Amongst the Strongest Balance Sheet in Power Sector

Net Debt reduced by ~` 636 Crore in Q4FY19; Net Debt to Equity healthy at 0.85x

Net Debt calculation excludes the market value of listed equity investments worth ~Rs. 2,050 Crore (As on March 31, 2019) Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30, 2018 Sept 30, 2018 Dec 31, 2018 Mar 31, 2019 Net Worth (Rs Crore) 11,259 11,469 11,110 11,581 12,231 11,904 11,822 Net Debt (Rs Crore) 12,679 11,896 11,278 11,382 10,982 10,686 10,050 Net Debt/Equity (x) 1.13 1.04 1.02 0.98 0.90 0.90 0.85 Net Debt/TTM EBITDA (x) 3.73 3.54 3.49 3.68 3.61 3.36 3.12 Weighted Average Cost of Debt 9.33% 9.04% 9.03% 8.97% 9.00% 9.06% 9.07% 1.13 1.04 1.02 0.98 0.90 0.90 0.85

0.60 0.70 0.80 0.90 1.00 1.10 1.20 9,000 10,000 11,000 12,000 13,000

Net Worth (Rs Crore) Net Debt (Rs Crore) Net Debt/Equity (x)

* *

in ` Crore in (x)

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Entity-wise Summary Financial Performance

` Crore

* After inter-company adjustments and eliminations

Q4 FY19 Q4 FY18 Income from Operations FY19 FY18

1,111 1,017 Standalone 5,118 4,212 632 569 JSW Barmer 2,566 2,211 131 146 JSW Hydro 1,244 1,401 21 22 JPTL 81 89 1,925 1,775 Consolidated * 9,138 8,049

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Entity-wise Summary Financial Performance

` Crore

* After inter-company adjustments and eliminations

Q4 FY19 Q4 FY18 EBITDA FY19 FY18

232 265 Standalone 1,167 1,201 234 212 JSW Barmer 993 888 102 112 JSW Hydro 1,103 1,285 20 21 JPTL 78 86 570 525 Consolidated * 3,221 3,228

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Agenda Overview Value Proposition Operational Highlights Appendix

26

Strong Financial Track Record

Key Financial Parameters FY17 FY18 FY19

EBITDA Margin (%) 41.8 37.9 33.9 Return on Avg. Net Worth (%) 6.3 4.6^ 6.1 EPS (` Per Share) 3.87 3.02^ 4.24

 Profit making entity since inception  Well capitalised balance sheet/ low gearing ratios  Reducing debt levels leading to robust debt protection metrics

Robust financial profile in a challenging environment

62,654 91,477 89,076 96,103 1,00,596 84,804 85,139 95,056 15,944 30,066 34,536 38,535 42,612 35,414 32,276 32,211

8,000 16,000 24,000 32,000 40,000

• 20,000

40,000 60,000 80,000 1,00,000 1,20,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total Revenue (Rs. mn) EBITDA (Rs. mn, RHS)

91,191 94,049 89,205 75,739 1,44,762 1,33,844 1,12,782 1,00,503 1.60 1.52 1.36 1.01 1.49 1.29 1.02 0.85

• 0.40

0.80 1.20 1.60 2.00 2.40

• 40,000

80,000 1,20,000 1,60,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Net Debt (Rs. mn) Net Debt to Equity Note: Figures from FY16 onwards have been restated as per IndAS; ^ Before exceptional items

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Demand Growth Trends

Source: CEA

Region FY19 YoY % Q4 FY19 YoY % Q3 FY19 YoY % Q2 FY19 YoY % Q1 FY19 YoY % Remarks (Region-wise Demand Drivers) (MUs) (MUs) (MUs) (MUs) (MUs) North

3,82,493 2.8% 82,793

• 0.5%

87,975 2.9% 1,10,304 2.7% 1,01,421 5.8% Rajasthan (Q4: 11%, FY: 12% YoY)

West

3,90,349 6.0% 95,458 2.8% 1,02,621 7.2% 92,653 8.9% 99,617 5.1% Q4: MP: 13%, Chhattisgarh: 13% FY: MP: 8%

South

3,39,377 6.0% 88,641 2.4% 83,738 9.3% 84,140 8.5% 82,858 4.2% Q4: Karnataka: 4%, AP: 4% FY: Telangana: 10%, AP: 9%

East

1,45,686 6.7% 32,789

• 0.1%

34,672 9.7% 40,215 11.0% 38,010 6.0% Q4: Sikkim 7%, DVC: 5% FY: Bihar: 11%, Odisha: 11%

NE

16,691 2.9% 3,865 10.7% 4,099 0.9% 4,829 4.6% 3,897

• 3.7%

Q4: Meghalaya:30% FY: Meghalaya:26%, Mizoram:34%

All-India

12,74,595 5.0% 3,03,546 1.6% 3,13,105 6.7% 3,32,141 6.8% 3,25,803 5.1%

Quarterly Growth Rates Region FY19 FY18 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 North

• 0.5%

2.9% 2.7% 5.8% 6.2% 6.4% 9.1% 4.2%

West

2.8% 7.2% 8.9% 5.1% 6.8% 11.3% 3.5% 5.2%

South

2.4% 9.3% 8.5% 4.2% 9.5% 1.0% 3.4% 5.0%

East

• 0.1%

9.7% 11.0% 6.0% 9.1% 5.0% 6.1% 7.1%

North-East 10.7%

0.9% 4.6%

• 3.7%
• 4.1%

8.2% 11.5% 12.2%

All-India

1.6% 6.7% 6.8% 5.1% 7.5% 6.3% 5.8% 5.1%

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Generation and PLF trends

Thermal PLF (%) FY19 FY18 Q4 FY19 Q4 FY18 Q3 FY19 Q3 FY18 Q2 FY19 Q2 FY18 Q1 FY19 Q1 FY18 Remarks All- India PLF

61.1% 59.9% 61.5% 63.0% 62.5% 58.8% 57.6% 56.9% 63.8% 61.6%

• During Q4FY19, All-India

Thermal PLF was lower YoY primarily due to decline in State sector PLF

• Private Thermal PLF declined in

Q4FY19 while remained flat in FY19

Central

72.6% 71.4% 75.7% 75.6% 73.8% 71.0% 68.2% 68.8% 74.8% 72.5%

State

57.8% 55.4% 57.6% 62.7% 59.3% 52.9% 51.6% 48.3% 62.3% 57.5%

Private

55.0% 55.0% 52.9% 55.0% 56.8% 54.8% 54.2% 55.1% 56.1% 56.8%

Gross Generation FY19 YoY % Q4 FY19 YoY % Q3 FY19 YoY % Q2 FY19 YoY % Q1 FY19 YoY % Remarks (MUs) (MUs) (MUs) (MUs) (MUs) Thermal

10,72,012 3.4% 2,66,790

• 1.1%

2,75,824 6.8% 2,53,047 2.3% 2,76,562 5.7%

• Overall generation growth

commensurate with demand growth

• RE and Hydro generation robust

at 21.4% YoY and 20.1% YoY in Q4FY19

Hydro

1,35,040 7.0% 23,174 20.1% 28,337 11.4% 51,807 14.8% 31,575

• 12.9%

RES

1,26,759 24.5% 28,624 21.4% 24,801 15.2% 42,807 36.7% 30,527 20.2%

Others

42,139

• 2.1%

9,440

• 11.6%

9,965

• 14.0%

11,968 10.6% 10,847 8.0%

Total

13,75,951 5.2% 3,28,028 1.5% 3,38,927 6.9% 3,59,629 7.5% 3,49,512 4.8%

Source: CEA

29

Thermal 63.5% Nuclear 1.9% Hydro 12.7% RES 21.8% Total: 45.4 GW # Total: 6.8 GW #

Installed Capacity

Source: CEA * Net capacity change during Q4FY19 # Refers to total installed capacity of respective segments

In FY19, Installed Capacity grew by 12.1 GW, an increase of 3.5% on YoY basis; FY19 RES addition significantly lagged target (21.8GW)

Sector-wise Installed Capacity – 356.1 GW (As on March 31, 2019) Segment-wise Installed Capacity – 356.1. GW (As on March 31, 2019)

Total: 77.6 GW # +3,560 MW * Total: 226.3 GW # +3,252 MW * Total: 105.1 GW # +668 MW * Total: 164.4 GW # +3,469 MW * Total: 86.6 GW # +2,675 MW *

• QoQ net capacity increased by ~6.8 GW led by RES (+3.56 GW) and Thermal (+3.25 GW) segments
• However, RES Capacity addition slowed down YoY (8.6 GW in FY19 vs 11.8 GW in FY18)

State 29.5% Private 46.2% Central 24.3%

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Average Merchant Tariff higher in FY19

Source: IEX (DAM)

Merchant tariffs improved in FY19 albeit lagged in Q4FY19 primarily due to subdued power demand

Particular FY19 FY18 FY17 FY16 Average merchant tariff (`/unit) 3.85 3.26 2.42 2.73 Particulars FY19 YoY% Q4 FY19 YoY% QoQ% Merchant Volume (MUs) 50,036 12% 9,431

• 12%
• 27.2%

1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Merchant Tariff Trend (`/unit)

FY16 FY17 FY18 FY19

31

• Industrial production (IIP) growth for FY19 stood at 3.6% on a YoY

basis, lowest in three years

• IIP growth slowed down in Q4FY19, dipping to 23-month low of (0.1)%

in March’19, due to contraction in manufacturing output

• Imported coal (API4) prices witnessed sharp decline of 12% YoY and

13.5% QoQ in Q4FY19

• Average value of rupee appreciated by ~2% QoQ in Q4FY19; however,

depreciated 9.5% on YoY basis

Indian Economy and Imported Thermal Coal Prices

Source: API4 Coal Index, Bloomberg, Reserve Bank of India (RBI)

Imported coal (API4) price and USD/INR indexed to Mar-18 Levels Industrial Production Growth (YoY %) Indexed to Dec-2018 Levels

• 2%

0% 2% 4% 6% 8% 10% 12% Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 Overall IIP Manufacturing 80 90 100 110 120 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Indexed API 4 Coal (monthly avg.) USD/INR (monthly avg.)

Month API 4 Coal USD/INR Dec-18 100 100 Jan-19 95 100 Feb-19 86 101 Mar-19 79 98

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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. Accordingly, any persons in possession of this presentation should inform themselves about and observe any such restrictions. Furthermore, by reviewing this presentation, you agree to be bound by the trailing restrictions regarding the information disclosed in these materials. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those specified in such forward-looking statements as a result of various factors and assumptions. 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) (v) government policies and regulations, and (vi) 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.

Forward Looking and Cautionary Statement

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