JSW Energy Limited Investor Presentation November 2018 Agenda - - PowerPoint PPT Presentation

JSW Energy Limited

Investor Presentation

November 2018

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Agenda Overview Value Proposition Operational Highlights Appendix

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*Listed company. ** USD/ INR = 72

JSW Group – Overview

USD 13 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: 11.6MTPA)

JSW Steel 11,873 JSW Energy 1,549

Group Market Cap (USD 13,421 mn**)

As on November 5, 2018

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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 ~3.5bn units in FY18
• 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 7MTPA and 6MTPA respectively); mineable reserves of 441mn tonnes

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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 Raj WestPower Ltd (subsidiary of JSW Energy) and Rajasthan Government undertaking, 2) USD/ INR = 72, 3) denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant, ^ New businesses segments currently under development/implementation

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/ $430mn2

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/ $766mn2

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/ $995mn2

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/

$1,288mn2

EV/Associated Businesses ^

• Entering businesses for manufacture of Electric Vehicles (EV),

Storage Battery & Charging Infrastructure; EV Cars 3-4 years

• COO appointed; Team being built; Partnerships being explored
• MOUs signed with Gujarat and Maharashtra Governments

Renewable Energy ^

• Commissioned ~10 MW solar power projects across rooftop

and ground-mounted segments within the JSW Group, and exploring other group captive capacities

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USD/ INR = 72, *Before exceptional items

Proven Track Record

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

FY12 FY18

• CAGR FY12–18: 5%

Total Revenue INR 62,654mn / $870mn INR 85,140mn / $1,183mn

• CAGR FY12–18: 12%

EBITDA INR 15,944mn/ $221mn INR 32,276mn/ $448mn

• CAGR FY12–18: 10%

Capacity (MW) 2,600 4,531

• Diversifying fuel sources

Fuel Type Thermal Coal Thermal Coal, Lignite, Hydro

• CAGR FY12–18: 8%

Net Generation (MUs) 13,594 21,816

• 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 FY12–18: 20%

PAT* INR 1,701mn/ $24mn INR 4,960mn*/ $69mn

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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 six Non-Executive Directors

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 four Non-Executive Directors

Stakeholders Relationship Committee

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

Risk Management Committee

 Periodically reviews risk assessment and minimisation procedures  Comprises of three Non-Executive Directors and two Executive Directors

Corporate Social Responsibility (CSR) Committee

 Formulates and recommends to the Board a CSR Policy including list of projects and programs  Strong commitment towards CSR  Comprises of four Non-Executive Directors 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 Robust Financial Profile

1 2 3 4 5

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1) High capital cost due to CFBC boilers for lignite based power plant USD/ INR = 72

Efficient Capital Allocation and Execution Capabilities

Vijayanagar (2000-2001): 260 MW @ INR 43.42mn/MW (~$0.60mn/MW) Vijayanagar (2010): 600 MW @ INR 32.78mn/MW (~$0.46mn/MW) Ratnagiri (2011-2012): 1,200 MW @ INR 45.97mn/MW (~$0.64mn/MW) Barmer (2010-2013): 1,080 MW @ INR 66.34mn1 /MW (~$0.92mn/MW)

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

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Power project Capacity Project cost 1st COD MW

` mn/MW $mn/MW Year

Lanco (Amarkantak) 600

52.3 0.73 2009

Lanco (Udupi) 1,200

46.7 0.65 2010

Aryan Coal (Kasaipalli) 270

50.0 0.69 2011

Tata Power/DVC (Maithon) 1,050

52.4 0.73 2011

Adhunik (Padampur) 540

61.8 0.86 2013

GMR EMCO (Warora) 600

62.5 0.87 2013

GMR (Kamalanga ) 1,050

62.1 0.86 2013

Dhariwal (Chandrapur) 600

62.2 0.86 2014

DB Power (Janjgir-Champa) 1,200

70.2 0.98 2014

JPVL (Nigrie) 1,320

79.2 1.10 2014

Neyveli (Barsingsar)

1

250

70.0 0.97 2010

Giral (Rajasthan)

1

250

76.9 1.07 2011

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

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JSW Energy Standalone1

93% 81% 83% 84% 61% 59% 67% 64% 62% 61% 61% 56% 55% 55% FY13 FY14 FY15 FY16 FY17 FY18 H1 FY19 JSW Energy Standalone PLF All India private sector thermal power plants' PLF*

*Source-CEA 1) Includes Vijaynagar (860MW) and Ratnagiri (1,200MW) plants 2) Deemed PLF

Portfolio of Efficient Operating Assets

 Among the best-run private sector power plants in India  The Company’s hydro power plant, Karcham-Wangtoo in Himachal Pradesh, reported its highest ever generation in FY18 since its commissioning in 2011

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Healthy PLFs driven by O&M and execution expertise

RajWest2 and Hydro

85% 86% 85% 82% 86% 83% 82% 85% 86% 85% 69% 94% 24% 14% 78% 90% 24% 14% 51% 94% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 RajWest Hydro

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

Lower fuel risk, resilience to sector dynamics. Commenced domestic coal usage at Vijaynagar plant. Fuel sources –

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

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45.4% 23.8% 30.6% 0.2%

4,541MW RE Hydro Lignite Imported coal

Power off-take arrangements – optimal mix of long term contracts & merchant power sales (return optimisation) ….

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

…. with aim to tie-up over 85% of capacity under long term PPAs

80.4% 19.6%

Long Term Short Term

3

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Source: Stock exchange filings – FY18 results (1) Calculated as EBITDA/ Revenue, where EBITDA includes Other Income, (2) Calculated as EBIT/ Average Capital Employed (3) For CESC, CPLTD for FY18 is basis FY17 figures

Sound Financial Profile

Healthy Margins and Return Ratios

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37.9% 48.6% 29.3% 27.0% 22.9% 22.8%

JSW Energy R Power Adani Power NTPC CESC (standalone) Tata Power

FY18 EBITDA Margin (%1)

9.5% 7.7% 7.4% 7.2% 6.6% 6.4% JSW Energy R Power NTPC CESC (Standalone) Tata Power Adani Power

FY18 Return on Capital Employed2 (RoCE %)3

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3.5 2.2 5.2 6.2 6.9 8.5

JSW Energy CESC (Standalone) NTPC R Power Tata Power Adani Power 1.0 0.3 1.2 1.4 2.5 59.0 JSW Energy CESC (Standalone) NTPC R Power Tata Power Adani Power

FY18 Net Debt/Equity (x)1

Source: Stock exchange filings – FY18 results (1) For CESC, CPLTD for FY18 is basis FY17 figures

Sound Financial Profile

FY18 Net Debt/EBITDA (x)1

Well capitalised Balance Sheet, adequately positioned to tap growth opportunities

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Agenda Overview Value Proposition Operational Highlights Appendix

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Key Highlights for Q2FY19 (1/2)

• Long Term PPA proportion for the Company improved to 80.4% in Q2FY19 from ~75% in Q1FY19, after

securing additional 230MW and 6.5MW PPAs within the JSW Group at Vijayanagar and Ratnagiri plants respectively

• The Company achieved higher PLFs in Q2FY19 across all locations on a YoY basis, accompanied by better

merchant realizations

• In IEX, average merchant prices during the quarter increased by 18.4% on a Y-o-Y basis to ₹3.83/unit. The

peak spot prices hit an all-time high of ₹19.99/unit in October

• Focus on Balance Sheet strength continues; Company’s Net Debt to Equity declined to 0.90x as the

Company reduced its Net Debt by ₹400 crore, through prepayment/scheduled repayments. Further, Buyer’s Credit reduced by ~₹366 crore through internal accruals

• CARE Ratings Ltd (CARE) revised the Company’s Long Term Rating to 'CARE AA-/Stable‘ from 'CARE AA-

/Negative‘. Further, CARE has upgraded the Long Term Rating for Raj WestPower Ltd (100% subsidiary of the company) to ‘CARE AA-/Stable‘ from ‘CARE A+/Stable’

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Key Highlights for Q2FY19 (2/2)

• The Company was conferred with “Golden Peacock Award for Sustainability” by Institute of Directors
• The Company’s Vijayanagar plant was conferred with “Safety Systems Excellence Award” by FICCI
• The Company’s Ratnagiri plant was recognized as “Energy Efficient Unit” in the 19th National Award for

Excellence in Energy Management organized by CII

• The Company was awarded “National Award for HR Best Practices -2018” by NIPM (National Institute of

Personnel Management)

• Electric Vehicle (EV) Business: (i) Appointed Auto Industry expert Mr. Rakesh Srivastava as Director- Sales and

Marketing, and (ii) Discussions ongoing with leading global OEMs and Engineering Service Providers on Product and Technology partnerships

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Power Generation

Q2 Plant-wise Net Generation

760 1,361 1,430 2,566 6,117 905 1,559 1,531 2,675 6,670

Vijayanagar Ratnagiri Barmer Hydro Total

Q2 FY18 Q2 FY19 19% 15% 4% 7%

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

9%

H1 Plant-wise Net Generation

1,950 2,917 2,875 4,775 12,517 1,865 3,591 3,182 4,118 12,756

Vijayanagar Ratnagiri Barmer Hydro Total

H1 FY18 H1 FY19 4% 23% 14% 11% 2%

Particulars Q2 FY19 Q2 FY18 H1 FY19 H1 FY18 Remarks (Q2 FY19)

PLF – Vijayanagar 52% 44% 54% 56% Supported by healthy offtake from LT PPA customers PLF – Ratnagiri 64% (*68%) 57% (*61%) 74% (*77%) 61% (*66%) Increase in LT PPA proportion PLF – Barmer * 85% 83% 86% 85% Consistent deemed PLF PLF – Hydro 94% 90% 73% 84% Increase due to higher water flow in Sutlej Basin Short term sales (MUs) 315 1,182 1,462 3,016 Decline due to 100% tie-up of Karcham Wangtoo plant under LT PPA

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Healthy improvement in the LT PPA mix

* Proportion of long term PPA to total capacity. Karcham Wangtoo capacity @ 1,000MW as currently approved

230MW and 6.5MW PPAs tied within the JSW Group at Vijayanagar and Ratnagiri plants in Q2FY19 respectively

2800 3000 3200 3400 3600 3800 Q1FY19 Addition in Q2FY19 Q2FY19 3,342MW 75.1% * 236.5MW in MW 3,578.5MW 80.4% *

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Consolidated Financial Results

# Not Annualized * Computed as PAT+Depreciation+ Deferred Taxes

` Crore

Q2 FY19 Q2 FY18 Particulars H1 FY19 H1 FY18

2,568 2,220 Turnover 4,996 4,554 998 1,053 EBITDA 1,842 2,029 39% 47% EBITDA Margin(%) 37% 45% 308 391 Interest 621 792 293 245 Depreciation 583 488 397 417 Profit Before Tax 637 749 316 297 Profit After Tax 545 514 623 574 Gross Cash Accruals * 1,123 1,071 1.93 1.81 Diluted EPS (`) # 3.32 3.14

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Net Debt reduction of `3,402 crore over last 6 quarters

10,000 10,750 11,500 12,250 13,000 13,750 14,500 Mar 31, 2017 Jun 30, 2017 Sept 30, 2017 Dec 31, 2017 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 ` 12,679 cr ` 11,382 cr

Optimization of debt profile through proactive prepayments, refinancing and scheduled repayments

in ` crore

` 10,982 cr ` 11,278 cr

Net Debt Reduction of ` 3,402 cr

` 11,896 cr ` 13,686 cr ` 14,384 cr ` 13,384 cr JPVL related liability ` 1000 cr (Non-funded)

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Amongst the Strongest Balance Sheet in the Power Sector

Particulars, as at Sept 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017

Net Worth (` Crore) 12,231 11,581 11,110 11,469 11,259 10,696 10,368 Net Debt (` Crore) 10,982 11,382 11,278 11,896 12,679 13,686 13,384 Net Debt to Equity Ratio (x) 0.90 0.98 1.02 1.04 1.13 1.28 1.29 Weighted Average Cost of Debt 9.00% 8.97% 9.03% 9.04% 9.33% 10.05% 10.17%

Net Debt and Short-term Buyer’s Credit reduced by ` 766 crore in Q2FY19 and by ~` 3,900 crore over the last 6 quarters

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* Negative outlook from H2FY17 to H1FY19; All other Ratings at Stable outlook

Continuous improvement in Credit Profile

Continuous improvement in Credit Profile of the Company and its key Subsidiaries as reflected by sequential rating upgrades

Credit Profile Timeline

H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 AA- A+ A

High Low

JSW Energy Ltd * JSW Hydro Energy Ltd Raj WestPower Ltd Jaigad Power Transco Ltd

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Entity-wise Summary Financial Performance

` Crore

* After inter-company adjustments and eliminations

Q2 FY19 Q2 FY18 Income from Operations H1 FY19 H1 FY18

1,199 939 Standalone 2,510 2,061 640 532 RWPL 1,278 1,069 542 518 Hydro 908 1,031 16 22 JPTL 38 45 2,431 2,049 Consolidated * 4,791 4,281

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Entity-wise Summary Financial Performance

` Crore

* After inter-company adjustments and eliminations

Q2 FY19 Q2 FY18 EBITDA H1 FY19 H1 FY18

309 349 Standalone 568 656 224 223 RWPL 489 449 498 502 Hydro 835 1,001 16 22 JPTL 37 44 998 1,053 Consolidated * 1,842 2,029

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Agenda Overview Value Proposition Operational Highlights Appendix

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Strong Financial Track Record

Key Financial Parameters FY16 FY17 FY18

EBITDA Margin (%) 42.4 41.8 37.9 Return on Avg. Net Worth (%) 16.0 6.3 4.6^ EPS (` Per Share) 8.90 3.87 3.02^

 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 15,944 30,066 34,536 38,535 42,612 35,414 32,276

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 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 1.60 1.52 1.36 1.01 1.49 1.29 1.02

• 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 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 improves to 6.9% in Q2FY19

Source: CEA

Region H1 FY19 YoY % Q2 FY19* YoY % Q1 FY19 YoY % Remarks (MUs) (MUs) (MUs) North 2,11,676 4.1% 1,10,255 2.6% 1,01,421 5.8% Driven by Rajasthan (Q2: 12%, H1: 13% YoY growth) West 1,92,292 6.9% 92,674 9.0% 99,617 5.1% Gujarat (Q2: 15%, H1: 10%) South 1,67,169 6.4% 84,311 8.7% 82,858 4.2% Andhra Pradesh (Q2: 14%, H1: 12%) East 78,175 8.4% 40,165 10.9% 38,010 6.0% Bihar and Orissa (Q2: 18%, H1: 16%) North-East 8,687 0.3% 4,790 3.7% 3,897

• 3.7%

Meghalaya (Q2: 42%, H1: 25%) All-India 6,57,999 6.0% 3,32,195 6.9% 3,25,803 5.1% Trend in Growth Rates

* Basis Provisional CEA Data for Sept-18

Region FY19 FY18 Q2 Q1 Q4 Q3 Q2 Q1 North 2.6% 5.8% 6.2% 6.4% 9.1% 4.2% West 9.0% 5.1% 6.8% 11.3% 3.5% 5.2% South 8.7% 4.2% 9.5% 1.0% 3.4% 5.0% East 10.9% 6.0% 9.1% 5.0% 6.1% 7.1% NE 3.7%

• 3.7%
• 4.1%

8.2% 11.5% 12.2% All-India 6.9% 5.1% 7.5% 6.3% 5.8% 5.1%

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Generation and PLF trends

Source: CEA

Thermal PLF (%) H1 FY19 H1 FY18 Q2 FY19 Q2 FY18 Q1 FY19 Q1 FY18 Remarks All- India PLF 60.7% 59.4% 57.7% 56.7% 63.4% 61.6%

• Overall thermal PLF shows marginal

improvement YoY led by state sector Central 71.6% 71.1% 68.4% 69.0% 74.6% 72.5% State 56.9% 53.5% 51.6% 48.3% 62.2% 57.5% Private 55.2% 56.0% 54.2% 55.1% 55.3% 56.8% Gross Generation H1 FY19 YoY % Q2 FY19 YoY % Q1 FY19 YoY % Remarks (MUs) (MUs) (MUs) Thermal 5,29,431 4.0% 2,52,869 2.2% 2,76,562 5.7%

• Strong generation growth of 7.4% in Q2FY19,

primarily led by RE segment (+36.7% YoY)

• Thermal generation growth was tepid at 2.2%

YoY Hydro 83,377 2.4% 51,802 14.8% 31,575

• 12.9%

RE 73,327 29.3% 42,800 36.7% 30,527 20.2% Others 22,717 8.9% 11,869 9.7% 10,847 8.0% Total 7,08,852 6.1% 3,59,340 7.4% 3,49,512 4.8%

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Thermal 64.1% Nuclear 2.0% Hydro 13.1% RES 20.8%

Total: 45.5 GW # + 84 MW * Total: 6.8 GW #

Installed Capacity

Source: CEA * Net capacity change during Q2FY19 # Refers to total installed capacity of respective segments

Installed Capacity grew by 0.2% QoQ and 4.5% YoY to 346.1 GW led by RES additions

Sector-wise Installed Capacity – 346.1 GW (As on September 30, 2018) Segment-wise Installed Capacity – 346.1 GW (As on September 30, 2018)

Total: 72.0 GW # + 1,346 MW * Total: 221.8 GW #

• 890 MW *

Total: 103.0 GW #

• 802 MW *

Total: 158.5 GW # + 1,360 MW * Total: 84.6 GW #

• QoQ net capacity increased by 0.6 GW. While thermal segment witnessed retirement of 0.89 GW capacity, RES and Hydro

segment capacity increased by 1.36 GW and 0.08 GW respectively

• However, RES Capacity addition pace significantly slower for FY19 (3GW achievement in H1-FY19 Vs 21.8GW target for FY19)

State 29.8% Private 45.8% Central 24.5%

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Effective Capacity addition lags Demand Growth

194 6 42 24 4 9 280 222 7 45 35 24 13 346 Thermal Nuclear Hydro Wind Solar Other RES Total

Mode-wise Installed Capacity (GW)

Sep-15 Sep-18 Source: CEA * Basis company analysis ; Computed as Capacity Added x Average industry PLF/Normative Annual PAF/CUF for the respective segment

Over the last 3 years:

• Base Demand has grown by 16.6%
• The total capacity has increased by 22.4% (66 GW), however

the effective capacity increase was only 12% (34 GW) on the basis of Normative Annual PAF/CUF

• Further, on basis of average PLF the effective capacity increase

was 8.9% (25 GW) Particulars H1 FY16 H1 FY19 % change

Demand (BUs) 564 658 16.6% Base Demand (GW) 129 150 16.6% Peak Demand (GW) 151 177 17.1%

28 1 3 10 20 5 66 23 1 2 2 4 2 34 16 1 1 2 4 1 25 Thermal Nuclear Hydro Wind Solar Other RES Total

Addition vs Effective Addition* (GW) between Sep-15 and Sep-18

Total Capacity added Normative Annual PAF/CUF PLF

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Average Merchant Tariff peaks in September’18

Source: IEX, PXIL

Average monthly merchant tariff peaked to an 8-year high in September’18 Spot prices hit an all-time high of `19.99/unit in October’18

Particular H1 FY19 FY18 FY17 FY16 FY15 Average merchant tariff (`/unit) 3.98 3.26 2.42 2.73 3.51 Particulars Q2 FY19 Q1 FY19 Q2 FY18 YoY % QoQ % Merchant Volume [IEX+PXIL, (MUs)] 13,849 13,959 12,128 14.2%

• 0.8%

1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average Monthly MCP (Rs/kWh)

Merchant Tariff Trend

2014 2015 2016 2017 2018

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Indian Economy and Thermal Coal Prices

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

Thermal coal prices remain elevated , while INR depreciates by 9% in Q2FY19 (YoY) Industrial Production Growth (YoY %)

• Industrial production (IIP) growth for Aug-18 stood at 4.3%YoY led

by manufacturing and electricity sectors.

• Continuing global trade war concerns, surge in crude oil prices, and

increasing US Bond Yields has resulted in a downward pressure on rupee. Indexed to Jun-2018 Levels

• 2%

0% 2% 4% 6% 8% 10% 12% Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Overall IIP Manufacturing 95 100 105 110 115 120 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Indexed API 4 Coal (monthly avg.) USD/INR (monthly avg.)

Month API 4 Coal USD/INR Jun-18 100 100 Jul-18 103 101 Aug-18 95 103 Sep-18 94 107

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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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