#1JSW Hydro Energy Limited : Corporate presentation April 2021 SW Energy#2Disclaimer Important Notice This presentation and the accompanying slides (the "presentation") contains selected information about the activities of JSW Hydro Energy Limited (the "Company") and its subsidiaries and affiliates (together, the "Group") as at the date of the presentation. It does not purport to present a comprehensive overview of the Group or contain all the information necessary to evaluate an investment in the Company. This presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements, which are available at www.jsw.in. No Offering This presentation is for information purposes only and is not a prospectus, disclosure document or other offering document under any law, nor does it form part of any present or future invitation, recommendation or offer to purchase or sell securities of the Group in any jurisdiction. 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The replication of any third party views in this document should not necessarily be treated as an indication that the Company agrees with or concurs with such views. By participating in this presentation, attendees agree to be bound by the foregoing limitations. JSW Energy 2#3Section 1 JSW Group Table of Contents 2 JSW Energy Overview 3 Focus on ESG 4 4 6 11 JSW Hydro Energy Overview 14 JSW Energy 3#4JSW Group SW Energy 4#5JSW Group - one of the prominent Indian corporates India's leading integrated steel producer by capacity Installed crude steel production capacity: ~18 MTPA Market Cap: USD 17.1 Bn JSW Steel Engaged across value chain of power business Installed capacity: ~4.5 GW SW Energy Market Cap: USD 1.9 Bn Engaged in port development & operations Operational capacity: 113 MTPA JSW JSW Infrastructure Better Everyday SW Cement Commenced operations in March 2019 Annual Capacity: 125,000 KL; only fully-automated water-based plant in India SW PAINTS USD 12 Bn¹ Group Amongst India's largest conglomerates SW JSW Ventures Supporting Indian sports ecosystem Teams Owned: Bengaluru FC, Delhi Capitals, Haryana Steelers JSW Energy લા JSW Foundation SW Sports Note: Market cap data as of 5-Apr-2021 1. By revenue Source: Bloomberg Manufacturer of PSC, OPC and GGBS cement Operational capacity: ~14 MTPA Early-stage, tech-focused, VC fund Portfolio: Purplle, IndusOS, Homelane Social development arm of JSW Group Footprint across 11 states 5#6JSW Energy Overview SW Energy 6#7JSW Energy - company overview Business Overview • Leading Independent Power Producer with 4.5 GW operational capacity • Listed entity in India with market cap of ~USD 1.9 Bn . • • • Segment-wise Installed Capacity³ One of the leading IPPs in India Power Generation Installed capacity of 4.5 GW; ~82% of portfolio has long term PPA Power Transmission JV with MSETCL: Two 400KV transmission lines Medium term target to reach 10.0 GW capacity with RE and Hydro contributing to 70% of total capacity from current 30% Hydro 29% Portfolio diversified across geographies, fuel mix and offtake arrangements ~82% of total portfolio tied under Long-term PPA; Set to reach ~87% in FY22 Majority of long term PPAs under two-part tariff structure with pass through of fuel cost and exchange-rate risks Projects are placed in the DISCOMs' top quartiles of the merit order dispatch JSW Energy Portfolio Overview Plant Location Ratnagiri Maharashtra Capacity (MW) 1,200 MW Fuel Type Thermal Status Barmer Vijayanagar Nandyal Karcham Wangtoo Baspa II Rajasthan Karnataka 1,080 MW Thermal Operational Operational ☑ 860 MW Thermal Operational Kutehr Solar Andhra Pradesh Himachal Pradesh Himachal Pradesh Himachal Pradesh AP, Raj, MH, WB 18 MW Thermal Operational 1,000¹ MW Hydro Operational 300 MW Hydro Operational 240 MW Hydro Under Construction 10 MW Solar Operational JSW Energy Lignite 24% Imported coal* 47% 4.5 GW SW Energy Presence Across Value Chain Power Trading Experienced trading arm in energy sector Mining 6-7 MTPA Lignite in Barmer (JV between JSW Energy (Barmer) Ltd & Rajasthan Govt. undertaking) Highlights Amongst strongest balance sheet in India power sector (Net Debt/Equity < 0.5x)² ☑ Sound operating efficiency characterized by one of the lowest O&M cost in the sector in India ☑ Credit Rating: AA- Stable (India Ratings & Research - a Fitch group company) * Necessary approvals secured to blend upto 50% of domestic coal for Ratnagiri and Vijaynagar plants (1) Current approved operational capacity at 1,000 MW. Awaiting CEA approval for uprating to 1,091 MW (2) Net debt as of Dec-20 excluding short term working capital debt/ acceptances (3) Based on current operational capacity excluding 10 MW solar capacity 7#8JSW Energy (Barmer) Limited (1,080 MW) JSW Energy - corporate structure JSW Energy Limited Ratnagiri 1,200 MW Vijayanagar - 860 MW Nandyal 18 MW Solar 10 MW Total 2,088 MW JSW Hydro Energy Limited (1,300 MW)** JSW Future Energy Limited JSW Renew Energy Limited Jaigad Power Transco Limited* JSW Power Trading Company Limited Barmer Lignite Mining Company Limited # JSW Energy (Kutehr) Limited (240 MW) - under construction JSW Renewable Energy (Vijayanagar) Limited JSW Renewable Energy (Dolvi) Limited JSW Energy All above major subsidiaries shown are wholly owned subsidiaries except the following- * JPTL is a 74:26 JV between JSWEL and Maharashtra State Electricity Transmission Company Limited (MSETCL) **Current approved operational capacity of Karcham HEP at 1,000 MW. Awaiting CEA approval for uprating to 1,091 MW # BLMCL is a 51:49 JV between Rajasthan State Mines and Minerals Limited (RSMML) and JSWE(B)L 8#9Operational and financial performance Revenue (US$ Mn) Net Debt/Equity 1,301 1,165 1,172 986 1.0x 0.9x 0.8x 0.5x FY18 FY19 EBITDA (US$ mn) Margin % 37.9% 442 33.9% 441 FY18 FY19 FY20 FY21 - TTM FY18* FY19* FY20* 9M FY21** Net Debt/EBITDA 37.9% 42.9% 3.5x 444 424 3.1x 2.8x 2.2x FY20 FY21-TTM FY18* FY19* FY20* 9M FY21** Note: Exchange rate: USD1 = Rs. 73.0536; TTM: Trailing 12 Months as on Dec' 20; EBITDA margin defined as EBITDA/revenue; Numbers rounded off to nearest decimal JSW Energy * As of 31-Mar ** As of 31-Dec 9#10Professionally managed business backed by strong stakeholder support Promoter Director Key Management Personnel Prashant Jain Joint Managing Director & CEO Sajjan Jindal Chairman and Managing Director Pritesh Vinay Chief Financial Officer Monica Chopra Company Secretary Independent Directors Chandan Bhattacharya Sunil Goyal JSW Energy Rupa Devi Singh Sattiraju Seshagiri Rao Munesh Khanna • Strong parentage of JSW Group JSW Group is a US$12 billion leading conglomerate known across the country as "strategic first mover" Spearheaded initiatives in core sectors like Steel, Energy, Cement, Infrastructure, Ventures, Paints & Sports Global presence across India, South America, South Africa and Europe Shareholding (as of Dec-20) Employees Trust 0.03% Public 25.08% Promoter & Promoter Group 74.89% Strong public stakeholder backing Vanguard® Nippon india Mutual Fund Wealth sets you free LIC भारतीय जीवन बीमा निगम LIFE INSURANCE CORPORATION OF INDIA SBI MUTUAL FUND A partner for life. HSBC Global Asset Management Dimensional 10#11Focus On ESG - JSW Energy JSW Energy 11#12Sustainability Framework - aim to make our operations Carbon Neutral by 2050 Sustainability Strategy Our 17 FOCUS AREAS Climate Change Energy Sustainability Framework Resources Water Resources Air Emissions Waste Water Waste Focus Area Biodiversity Local Considerations Indigenous People Human Rights Cultural Heritage Sustainable Mining Supply Chain Sustainability Employee wellbeing Business Ethics Social Sustainability IFC International Finance Corporation WORLD BANK GROUP Creating Markets, Creating Opportunities ISO Adopted JSW Policies OECD United Nations Global Compact SUSTAINABLE DEVELOPMENT UNITED NATIONS GUIDING PRINCIPLES ON BUSINESS GOALS & HUMAN RIGHTS Water Resource Community Involvement & 1. Climate Change 4. 7. 10. Air Emissions Management Social Development 2. Energy 5. Waste Water 8. Human Rights 11. Biodiversity Resource 3. 6. Waste Conservation JSW Energy 9. Indigenous People and Resettlement 13. Cultural Heritage 14. Labour Practices and Employment 24 12. Local Considerations 15. Employee Health, Safety & Well-Being 16. Operating Our Business Ethically WATCH 17. Making Our World a Better Place BUSHES CONDUCT https://www.jsw.in/groups/sustainability-policies 12#13Focus Areas Climate Change Water Security Sustainability targets - Our ten commitments Waste Management 10 Years Cleaner Power Roadmap (2020-2030) Air Emissions Biodiversity JSW Energy Make our operations Carbon Neutral by 2050 Reduce our carbon emissions by more than 50% Enhance the renewable power to 2/3rd of our Total Installed Capacity Reduce our energy intensity and auxiliary power consumption by more than 50% Reduce our water consumption per unit of energy produced by 50% Maintain a 'ZERO LIQUID DISCHARGE' for all our power plants Maintain 100% recycling of fly ash and wastes generated from our operations Reduce the dust emissions, per unit of energy produced, by 2/3rd Reduce the emissions of Oxides of Sulphur and Nitrogen, per unit of energy produced, by 60% Achieve a 'no net loss' of biodiversity at all our operating sites 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#14Committed to responsible stewardship with focus on sustainability, health and safety MSCI : BB, amongst the highest rated power producers with thermal portfolio in India JSW Energy ESG Ratings CDP: B, highest rating achieved by any Power producer in India 3.25x Net solar power generation 7.17% Reduction in direct emissions Zero Effluent Discharge At all our sites 5.17 training man-days Of executive employees 100% Fly ash utilisation 3,50,000 Mangrove saplings planted over an area of 70 hectares (1) 67,381 Direct beneficiaries impacted by net-positive social, environmental and economic contribution Accident free operations Best-in-class safety standards are being adopted in Karcham Wangtoo and Baspa II HEPs (2) Zero Lost Time Injuries (LTIs) reported On our sites JSW Energy Figures are for FY20 (1) Total 1,050,000 saplings planted till date (2) Accident free operations of 5,901 man-days in Baspa and 951 man-days in Karcham Wangtoo until 31-Dec-20 14#15JSW Hydro Energy Overview SW Energy 15#16A. Overview SW Energy 16#17Snapshot of JSW Hydro Energy Largest Private Hydro Portfolio In India by capacity Baspa II HEP • Wholly-owned subsidiary of JSW Energy Ltd • Capacity: 300MW Configuration: 3x100MW Owns and operates two hydro power plants in Himachal Pradesh with combined capacity of 1,300¹ MW • Units operating: Since 2003 • Currently constructing 240 MW Hydro plant at Kutehr, Himachal Pradesh² • Key Highlights: Run-of-the-river projects with state-of-the-art infrastructure Demonstrated track record of 18 years of steady and efficient performance of the Projects "Must Run" Status for Hydro Projects and placement in Discom's top 2 quartiles of Merit order dispatch which mitigates offtake risk Regulated Return assets with robust payment security mechanisms to mitigate receivable risks • Levelized tariff for Hydro projects is highly competitive vs tariffs of New Renewables • Power Offtake: Long Term PPA Location: Himachal Pradesh Karcham Wangtoo HEP Capacity: 1,000MW¹ Configuration: 4x250MW1 Units operating: Since 2011 Power Offtake: Long Term PPA Location: Himachal Pradesh • • • • Kutehr HEP (Under Construction) Capacity: 240MW Configuration: 3x80MW (under construction) PPA under finalization with Haryana Discom Location: Himachal Pradesh Expected COD: FY25 JSW Energy (1) Current approved operational capacity of Karcham Wangtoo at 1,000 MW. Awaiting CEA approval for uprating to 1,091 MW (2) Through a wholly owned subsidiary of JSW Hydro Energy Ltd 17#18CHAMBA LAULAND SPITI Chamba KANGRA Dharamsala KULLU Mandi D Kullu Hamirpur UNA HAMIRPUR Ura MANDI BILASPUR Bilaspur SHIMLA Solan OSHIMLA SOLAN Sirmaur SIRMAUR Karcham Wangtoo Plant - Overview HIMACHAL PRADESH Kyelang © KINNAUR © Reckong Peor Location Kinnaur District, Himachal Pradesh Concession Details • Operational concession till September 20511 CHINA 30 LARCHIAM Commission Details • BAM 13th September 2011 SW Capacity • 1,000² MW Saleable Capacity • 880 MW Design Energy • 4,131 million units Total Power • FY20: 4,615 million units Generated Plant Availability Factor • Karcham Wangtoo hydro plant is located on river Sutlej Its diversion dam is located at village Karcham and the powerhouse is located near village Wangtoo on NH-5 The project comprises of 44.60 km of tunneling in the Himalayan geology The concrete gravity dam used to generate power is 88m high, 53m of which is below the riverbed level The plant's pressure shafts feed four generating units of 250MW each, installed in an underground powerhouse at Wangtoo PPA Plant Availability maintained above normative level (90%) for FY13-20 Signed PPA through PTC India Ltd. for entire saleable capacity till September 20463 12% free power of the electricity generated is to be supplied to the Government of Himachal Pradesh revising to 18% during FY24 Equipment suppliers ANDRITZ VOITH ABB ALSTOM Turbine Generator Generator Transformer 400kV GIS JSW Energy (1) With a provision to extend for a period of 20 years mutually agreed upon (2) Current approved operational capacity at 1,000 MW. Awaiting CEA approval for uprating to 1,091 MW (3) PPA close date with provision to extend for mutually agreed upon period 18#19Baspa II Plant - Overview HIMACHAL PRADESH CHAMBA LAULAND SPITI Chamba Kyelang KANGRA Dharamsala UNA Una KULLU Mandi 0 Kullu KINNAUR Reckong Peo Hamirpur HAMIRPUR BILASPUR Bilaspur MANDI SHIMLA Solan OSHIMLA SOLAN Sirmaur SIRMAUR CHINA Location Kinnaur District, Himachal Pradesh Operational concession till 7th June 20431 Concession Details Commission Details • 8th June 2003 Capacity Saleable Capacity 300 MW 264 MW Design Energy • 1,213 million units Total Power Generated Baspa Plant is located in the higher reaches of the Himalayas Its diversion barrage is located in village Kuppa, near Sangla, and the powerhouse is located near village Karcham, upstream of the Karcham Dam Plant's underground powerhouse accommodates three 100 MW Pelton turbine-generating units A 400 KV switchyard with generator transformers and gas-insulated switchgear is installed underground in a cavern A double-circuit 400 KV transmission line feeds into the Jhakri sub-station Plant Availability Factor PPA FY20: 1,338 million units Plant Availability maintained above normative level (90%) for FY04-20 For entire sealable capacity PPA was signed with Himachal Pradesh State Electricity Board Ltd. 12% free power of the electricity generated is to supplied to the Government of Himachal Pradesh² Equipment suppliers ANDRITZ SIEMENS Turbine Generator (1) PPA close date with provision to extend for further 20 years JSW Energy (2) For the entire concession period बी एच ई एल BHEL Generator Transformer ALSTOM 400kV GIS 19#20Plants have consistently outperformed Design Energy • • Karcham Wangtoo In Karcham Wangtoo, after studying of 34 hydrologic years (1966-67 to 1999- 2000), FY 1997-98 was approved discharge series by CEA for Design Energy Generation (4,131 MU) for 90% of Dependable Year Since commissioning of plant, power generation has been higher than Design Energy in 8 out of 9 years of a near full season of operations Baspa II In Baspa II, after studying of 26 hydrologic years (1965 to 1991), FY 1981-82 was approved discharge series by CEA for Design Energy Generation (1,213 MU) for 90% of Dependable Year Since commissioning of plant, power generation has been higher than Design Energy in 15 out of 17 years of a near full season of operations Design Energy vs. Actual Generation 5,000 4,653 4,726 4,571 4,647 4,500 4,240 4,372 4,131 4,057 3,969 4,000 3,500 3,000 2,500 2,446 2,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Design Energy As per 90% Dependable Year 1997-98 Actual Generation (MUs) 600 Design Energy vs. Actual Generation 1,600 1,474 1,400 1,343 1,281 1,292 4,161 1,402 1,240 1,257 1,276 1,266 1,213 1,190 1,200 1,281 1,301 1,345 1.310 1,337 1,353 1,142 1,175 1,000 800 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 JSW Energy Our plants in Sutlej basin have outperformed Design energy due to healthy flow of river water 2013-14 2014-15 2015-16 Design Energy Actual Generation (MUs) 2016-17 2017-18 2018-19 2019-20 20 2020-21#21B. Key credit highlights SW Energy 21 221#22Key credit highlights Favorable Sector Dynamics Hydro Power is a leading Renewable energy source in India with strong regulatory support 2 Key Operational Highlights • Largest private sector portfolio of Hydro assets in India with long track record of operations Reg Return Assets Reg Return assets with fixed RoE 3 JSW HYDRO 4 PPA and Receivables Long term PPAs with robust payment security mechanisms to mitigate receivable risks JSW Energy • Hydrology Highlights Financials Demonstrated track record of steady and efficient performance - significant years of operating track record for both asset and meeting design energy Superior financial profile with stable cash flow generation 22#23Hydro Power is a leading Renewable energy source in India... India is expected to show strong growth in power demand with hydro power strategically placed as outlined by HPO¹ Robust Power Consumption Growth² PEAK DEMAND ~184 GW BASE DEMAND ~320 GW CAGR 5.2% 2,379 BU 1,291 BU FY2020 FY2032 Power Demand to be driven by India's robust economic growth ~136 GW of increase in Peak Demand expected Why is Hydro Power attractive in India? Hydro Power best placed for Grid Balancing requirement arising due to variability of Renewable energy sources Ideal for meeting the Peak requirement of power with increasing urbanization of India Seasonality of Power demand matches the generation profile of hydro assets 'Must Run' status for Hydro Power places it in top quartiles for power offtake by Discoms Stable and Predictable energy generation: Long Term Hydrology Data Available Hydro power technology is reliable and efficient, with low operating and maintenance cost Favorable Regulatory Environment and Government support bolstering Hydro power development Hydro included in SECI's upcoming RE Hybrid-bids JSW Energy (1) HPO= Hydropower Purchase Obligation (2) Central Electricity Authority - Long Term Electricity Demand Forecasting 2019 Source: CEA 5 23#24...supported by favourable regulatory and policy measures Renewable Energy Status Must-Run Status Large Hydropower Projects are recognized as Renewable Energy source by Govt. of India² which will provide developers with flexibility in tariff determination, and grants for the flood moderation components of projects and enabling infrastructure, such as roads and bridges 'Must Run' status accorded to Hydro projects to prioritize off-take of Hydro power Discoms are required to thus offtake Hydro power before Conventional sources Hydro power Purchase Obligation - In Jan 21 Govt. of India released the trajectory of Hydro power Purchase Obligation (HPO) for Discoms under Renewable Purchase Obligation (RPO) HPO-Trajectory 2.82% 2.51% 2.15% 1.80% 1.48% 1.08% 0.66% 0.18% 0.35% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Regulated Returns CERC Tariff Regulations¹ allow 16.5% post-tax Return on Equity for Hydro Projects (for Run-of-the-river type) Two-Part Tariff leads to Availability based income and incentives JSW Energy (1) Central Electricity Regulatory Commission - Tariff Regulations for 2019-24 (2) Press Information Bureau release on March 9, 2019 5 24#25Largest private sector Hydro assets with demonstrated operating track record Overview of Top 10 private sector hydro power plants in India by capacity (MW) 1,000* +2.5x next largest private hydro plant 400 330 300 300 192 110 100 99 99 97 1 Karcham Wangtoo Vishnu Prayag HPS (JSW) (Jaypee) Shrinagar HPS (GVK) Baspa II (JSW) Bhira HPS (Tata Power) Allain Duhangan (Bhilwara Energy) Chuzachen HPS (Greenko) Malana-II (Bhilwara Energy) Singoli Bhatwari (L&T) Tashiding HPS (Shiga Energy) ☑ Run-of the river projects with state-of-the-art infrastructure > > Karcham Wangtoo and Baspa II have been operating for 10 years and 18 years respectively demonstrating a long track record of operations High replacement cost of hydro power Efficient operating mechanisms and systems for optimal use of water resources Karcham Wangtoo eligible for carbon credits under Clean Development Mechanism (CDM) by United Nations Framework Convention on Climate Change (UNFCC) Both plants registered as Verified Carbon Standard (VCS) projects generating CO2 emission offsets SW Energy Source: National Power Portal - Government of India *Current approved operational capacity at 1,000 MW. Awaiting CEA approval for uprating to 1,091 MW 25#26Reg Return Assets - Tariff Determination (Karcham Wangtoo) Operating and Maintenance expenditure O&M expenditure is as per contracts with our providers and is fixed @2% p.a. of the project cost with escalation with escalation at annual intervals based on CPI & WPI annual escalation factor Depreciation on assets Depreciation on assets is available @5.18% for the first 12 years of operation and balance value of the assets upto the 90% of the assets value is depreciated life being charged across the period of the remaining PPA Interest on Term Loan / Working Capital Loan Interest on permitted debt is also added to the costs to arrive at the Annual Revenue Requirement Further, any savings in interest cost on refinancing up to normative debt accrue 50% to us Return on Equity and tax on Return on Equity 16.5% of the equity investment is added to the above costs to arrive at the ARR. Further, this prescribed rate is post tax. Accordingly, the tax on return on equity is also added Annual Revenue Requirement Fixed Charge 50% is payable as fixed amount on monthly basis Variable Charge 50% is payable as variable charge on a per unit basis the minimum design energy Incentive: Any increase in availability of plant beyond normative availability is eligible for incentive through pro rata increase in fixed charge payable recovered on a monthly basis Incentive: Any Secondary Energy, energy produced in excess of design energy is eligible for incentive and is billed at Rs. 1.20 per kwh Design energy - Minimum energy threshold required to be produced by plant. If any year Design Energy is not met due to lower flow of water in the river, the shortfall amount is recovered in the next year. JSW Energy 2 26#27Reg Return Assets - Tariff Determination (Baspa II) Operating and Maintenance expenditure O&M expenditure is as per contracts with our providers and is fixed @2.5% p.a. of the Project cost with escalation at annual intervals based on CPI & WPI annual escalation factor Depreciation on assets Interest on Term Loan / Working Capital Loan Return on Equity and tax on Return on Equity Annual Revenue Requirement Fixed Charge Depreciation on assets is available @4.31% currently and will end on FY 25 Interest on permitted debt is also added to the costs to arrive at the Annual Revenue Requirement 16.0% of the equity investment is added to the above costs to arrive at the ARR. Further, this prescribed rate is post tax Accordingly, the tax on return on equity is also added Incentive: Interest on T/L and depreciation are paid monthly For each additional 1% of availability beyond normative availability addition RoE of 0.35% is paid with maximum of 2% of additional RoE Variable Charge ROE, Tax, O&M and Interest on WC is payable on a per unit basis the minimum design energy Incentive: Any Secondary Energy, energy produced in excess of design energy up to 155 MUs is eligible for incentive and is billed at Rs. 3.15 per kwh Design energy - Minimum energy threshold required to be produced by plant. If any year Design Energy is not met due to lower flow of water in the river, the shortfall amount is recovered in the next year. JSW Energy 2 27#28Revenue visibility through long term PPAs 3 Project Capacity under PPA (MW) Fixed RoE Off-taker PPA period Evacuation Himachal Pradesh Baspa II 300 MW* 16.0% (HPSEB) 40 Years (till 2043) (provision to extend for further 20 years) 400 kV D/C Baspa II-Naptha Jhakhri dedicated transmission line Karcham Wangtoo 1000 MW* 16.5% PTC India (Haryana, Punjab, UP and Rajasthan Discoms) 35 Years (till 2046) (provision to extend for mutually agreed upon period) 400 KV D/C Karcham Wangtoo - Abdullapur Transmission Line | > > Levelized tariff after the new trajectory of HPO for Discoms under RPO is ~Rs. 4.5/kWh for any newly constructed hydro projects Both assets have long-term PPAs in place (20-25 years remaining) Long term PPAs on cost-pass through basis, allowing fixed return on equity Project cost has already been approved by respective regulator for both projects, leaving less room for any tariff dispute ** Low scheduling risk as hydro plants are under 'Must-run status' and in top 2 quartiles of Merit Order Dispatch for all state Discoms SW Energy * Includes 12% Free power to Himachal Pradesh Govt. **Kutehr-Levelized tariff of Rs. 4.50/kWh HPO: Hydro power Purchase Obligation; RPO: Renewable Purchase Obligation 28#29Diversified off-taker profile limits counter-party risk • Limited counter-party risk with diversified off-takers Karcham Wangtoo: PPA with PTC PTC has in turn entered into PPA with Uttar Pradesh, Punjab, Haryana and Rajasthan State Discoms • Baspa II: PPA with Himachal Pradesh State Electricity Board • Credit profile of state discoms consistently improving due to timely receipt of financial support from central and state government Receivables days evolution 59 58 FY18* FY19* 89 FY20* Receivables ageing profile (USD mn)¹ . Central government announced Rs. 120,000cr Covid relief package for discoms • 'Must Run' status has been accorded to Hydro projects to prioritize off-take of Hydro power (as per Merit Order Dispatch of all states) ~28 • This ensures that the generation is not subject to curtailment on account of merit order dispatch or any other commercial consideration • Moreover, the tariffs for JSW Hydro plants comes within top 2 quartiles of the Merit Order Dispatch ~6 ~3 ~4 ~1 ~0 Within <30 days credit i 31-60 days 60-90 days 90 180 >181 days days !period L Competitive tariff and large capacity of Karcham Wangtoo and Baspa II provides a reliable source of hydro power for all the existing power offtakers Note: Receivable days calculated as Trade receivables *365/TTM revenue; Exchange rate: USD1 = Rs.73.0536 JSW Energy * As of 31-Mar (1) As of 31-Mar-20 3 29#30(USD mn) (USD mn) Superior financial profile with stable cashflow generation Revenue 192 170 173 FY18 FY19 FY20 EBITDA (USD mn) 63 663 FY18 176 5.2x 151 149 FY18 FY19 1 FY20 Note: Exchange rate: USD1 = Rs.73.0536 JSW Energy * As of 31-Mar (1) Funds From Operations (FFO) = EBITDA - Interest - Tax FFO¹ 10 72 70 FY19 Net debt / EBITDA 5.3x FY20 4.8x FY18* FY19* FY20* 30 9#31Thank you SW Energy 31