#1JSW Energy Better Everyday VAV Corporate Presentation February 2022#2Forward Looking and Cautionary Statement JSW Energy 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 strictly 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. 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JSW Energy Investor Presentation 2#3JSW Energy Investor Presentation Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy 3#4JSW Group - Overview India's leading integrated steel producer Installed crude steel capacity of 26 mtpa, growing to 36 mtpa Market Cap: USD 21.7 Bn JSW Steel JSW Energy SW Energy Power producer with 7 GW generation portfolio (Hydro, Renewable and Thermal) 20 GW Target (85% Renewable) by 2030 Market Cap: USD 6.8 Bn Amongst Top 5 Indian port companies Operates environment-friendly seaports & terminals Targeting 200mtpa cargo handling capacity SW Infrastructure in next few years India's new age Paints company offering a path-breaking Any Colour at One Price State-of-the-art Facilities in Maharashtra and Karnataka Ranks Number 1 in Industrial Coil Coatings JSW PAINTS JŚW Better Everyday USD 13 Bn1 Group Amongst India's leading conglomerates JSW Cement SW JSW Ventures India's leading Green cement company Current capacity of 14mtpa, with a medium term target of 25mtpa Product range includes PSC, GGBS, Concrete & Construction Chemicals Early-stage, tech-focused, VC fund Portfolio: Purplle, IndusOS, LimeTray, Homelane Supporting Indian sports ecosystem Teams Owned: Bengaluru FC, Delhi Capitals, Haryana Steelers 485 SW Sports JSW Foundation JSW Energy Investor Presentation Note: Market cap data as of January 21, 2022; USD/INR = 74.5 1. By revenue Social development arm of JSW Group Footprint across 11 states Positively impacts more than a million lives across India 4#5JSW Energy - Overview JSW Energy 20 GW ~4x CAGR: 18% 10 GW 16.8 Transforming to ~70% Renewable by FY25 and -85% by FY30 Renewable (Hydro+Wind+Solar) ■Thermal Diversified Asset Portfolio (7 GW: 55% Renewable) 4.6 GW Installed 30% Renewable 2.5 GW Under-construction 100% Renewable Re-organizing business into Grey and Green Businesses Capacity (MW) Segment Status Plant 4.6 GW 1.4 3.2 3.2 FY21 FY25e 30% 70% 68% 6.8 Grey Business Ratnagiri 3,158 1,200 Thermal Operational 3.2 FY30e Barmer 1,080 Thermal Operational Vijayanagar 860 Thermal Operational Nandyal 18 Thermal Operational 32% 84% 16% Green Business 3,859 Karcham Wangtoo 1,0911 Hydro Operational Capacity additions only via Renewables Carbon Neutral by 2050 Capitalizing on Opportunities in New Energy Growth Platforms Baspa II Solar 300 Hydro Operational 10 Solar Operational Group Captive - JSW 225 Solar Near Commissioning Steel 733 Wind Under-Construction SECI - IX 810 Wind Green Hydrogen ✓ Energy Storage: • Hydro Pumped Energy products & services • Battery Energy Under-Construction SECI - X 450 Wind Under-Construction Kutehr 240 Hydro Under-Construction JSW Energy Investor Presentation LT: Long Term 1) Current approved operational capacity at 1,045 MW; Approval received for uprating to 1,091 MW LO 5#6• Re-organisation of Green and Grey Business* Barmer: 1,080 MW Configuration: 8 X 135MW Units operating: since 20093 Technology: Sub-critical pithead Lignite based TPP Fuel Source: Captive Lignite mines of BLMCL1 • Power Offtake: Long Term PPA: 100% • • • • Project Cost: INR 7,165 Crore/ $962m² Ratnagiri: 1,200 MW Configuration: 4 X 300MW Units operating: since 20103 Technology: Sub-critical TPP Fuel Source: Imported Thermal Coal Power Offtake: Long Term PPA: 96% Project Cost: INR 5,516 Crore/ $740mn² Nandyal: 18 MW 1x18MW Thermal Power Plant 100% LT PPA under Group Captive scheme Vijayanagar: 860 MW Configuration: 2 X 130MW and 2 X 300MW Units operating: since 2000³ Technology: Sub-critical TPP Fuel Source: Imported Thermal Coal & Gas • Power Offtake: Long Term PPA : 35% Project Cost: INR 3,096 Crore/ $416m² Remaining Avg. Life of PPA: ~20 years Remaining Avg. Life of Assets: ~30 year 4.6 GW 2.5 GW | I Installed 30% Renewable 70% Thermal Under- Construction 100% Renewable . • • • JSW Energy Baspa II: 300MW & Karcham Wangtoo: 1,091 MW 4 • Configuration: 3x100MW (Baspa II); 4x272.75MW (Karcham) Units operating: Baspa II since 20033 and Karcham Wangtoo since 20113 Technology & Fuel Source: Hydro Power Offtake: Long Term (1300 MW), Short Term (45MW) Asset Value to JSW Energy: INR 9,275 Crore/$1,245mn² Solar: 10 MW Ground based and rooftop solar power projects across various locations with captive power tie-up within JSW Group Kutehr: 240 MW (Under Construction) Configuration: 3x80MW • Fuel Source: Hydro Power Plant • Power Offtake: PPA with Haryana under finalization Renewable : 2,218 MW (Under - Construction) • 810 MW, Wind: SECI IX - PPA Signed • 450 MW, Wind: SECI X - PPA Signed • 733 MW Wind, 225 MW Solar JSW Steel - PPA Signed Green - 3859 MW (55%) Grey -3158 MW (45%) *Currently under progress Long term FSA with BLMCL for supply of lignite from its captive mines (2)) USD/INR = 74.5 (3) Denotes start of first unit in respective calendar year; TPP - Thermal Power Plant (4) Current approved operational capacity at 1,045 MW. CEA approval received for uprating from 1,000 MW to 1,091 MW, in a phased manner 6 over CY21 and CY22#7Healthy Operations and Financials JSW Energy Business model resilient with steady cashflow generation despite several sectoral headwinds 86% Capacity under LT PPA1 ~95% EBITDA contribution from LT Net Generation (BUS) 20 BUS Net Generation Figures are for FY21 Total Income³ (Crore) 2,004 Crore Gross Cash Accruals² 22.1 9,506 21.3 20.0 8,560 7,160 ✓ Stable operations despite Covid pandemic impact High LT PPA tie-up rendering high cash flow visibility Almost all LT PPA under two-part tariff (imported/domestic fuel cost/forex pass through) • ✓ Steady EBITDA and Cash Profit Generation ✓ One of the lowest O&M cost in the sector ✓ Diversified off-takers • All plants placed favorably in Merit Order Despatch . Hydro projects under 'must-run' status FY 19 FY20 FY21 FY19 FY20 FY21 EBITDA (Crore) Gross Cash Accruals 2 (Crore) 3,221 3,244 3,144 2,128 1,892 2,044 44% 34% 38% FY 19 FY20 FY21 FY19 FY20 FY21 JSW Energy Investor Presentation LT Long Term ;; 1 - As on Dec 31, 2021 the figure stands at 84% 7 2- Calculated as PAT+ Depreciation+ Deferred Taxes+ Exceptional items 3-Not comparable YoY in FY21 due to Change to Job Work Model Partially#8Robust Balance Sheet JSW Energy Large balance sheet headroom & strong cashflow available to pursue growth 1.74x Net Debt/EBITDA 7.82 % Wt. average cost of debt Figures as of Dec 31, 2021 0.37x Net Debt/Equity 20% YoY Decline in Receivables Outstanding ✓ Strong Liquidity with healthy cash balances: 2,195 Crore ✓ Financial flexibility enhanced by equity investments: Holding 7Cr JSW Steel shares (Value¹: ~4,590 Crore) ✓ Healthy Credit Ratings: ■Net Worth ■Net Debt 14,507 11,822 11,646 10,050 8,945 *Crore 16,082 6,206 6,021 Mar'19 Mar'20 Mar'21 Dec'21 --Net Debt/Equity -Net Debt/EBITDA 3.12 • India Rating & Research: AA- (Stable outlook) 2.76 Brickwork Ratings: AA- (Positive outlook) 1.97 1.74 ✓ Access to diverse pools of liquidity 0.85 0.77 0.43 0.37 ✓ Efficient Receivable Management: down 20% YoY vis-à- vis a 2% increase in sector² Mar'19 Mar'20 Mar'21 Dec'21 JSW Energy Investor Presentation 1- Value of JSW Steel Share holdings as on December 31, 2021, 2- As per PPRAAPTI data Net Worth is impacted by change in value of listed equity investments through Other Comprehensive Income 8 00#9JSW Energy Investor Presentation Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy 9#10I In GW ■Thermal ■Renewable - Hydro ■Renewable - Wind & Solar Thermal Renewable JSW Energy: Growth Roadmap to 20 GW Renewables-led growth to 20 GW by 2030 ~4x increase in overall portfolio CAGR: ~18% 10 20 15.5 JSW Energy . New Growth Platforms • Green Hydrogen •Hydro Pumped Storage I I I I J I I I I . • Battery Energy Storage T • Energy Products & Services I J I 5.5 4.6 2.5 GW 1.4 Under construction 1.6 as of 9M'FY22 3.2 3.2 1.6 3.2 No equity dilution envisaged for growth >75,000 Crore capex for reaching 20 GW FY21 FY25e FY30e ✓ Annual EBITDA to grow ~5x and PAT ~6x for growth from 4.6 GW to 20 GW 16% 30% 70% JSW Energy Investor Presentation 68% 32% 84% ✓ Diverse Sources of Capacity addition: Solar and Wind bids RTC power bids Storage bids C&I customers RE Power for Green Hydrogen Being at the forefront of Energy Transition - Commissioning starting Q4 FY22 10 I I I I I I#11JSW Energy Investor Presentation 225 MW Solar Plant Under-construction in Karnataka JSW Energy Project near completion; Commissioning from Q4 FY22 11#12JSW Energy Investor Presentation 1.26 GW Wind Plants Under-construction in Tamil Nadu JSW Energy Dedicated transmission line construction and civil work progressing well Orders placed for WTG equipment; Commissioning from Q1 FY23 12 I I I I I#13240 MW Kutehr HEP Under-construction in Himachal Pradesh Energy SZNZ NZINZINZINZ NZNE Completed -60% (12.7 km) tunneling work (~50% in Q2) well ahead of timelines Targeted Commissioning by Sept 2024 JSW Energy Investor Presentation 13#14Value Accretive Growth with Attractive Returns JSW Energy Current market returns due to highly competitive tariffs* Single digit to lower teen IRR% Bidding with conservative assumptions Targeting a niche market segment offering healthy returns Pre-bid resources identification to reduce uncertainty on land & connectivity No Turn key EPC contracts: instead creating value with split package approach Modular commissioning; Early onset of revenues Debt loading coinciding with revenue generation Targeting mid- teen post-tax equity IRRs Mid-teen IRR % Cost reductions due to Self O&M Technology Improvement Reducing Interest cost via refinancing Enhancement In Returns Realized More than mid-teen IRR% Equity IRRs Pre-Bid Preparation Project Execution JSW Energy Target Returns Potential Upside Levers Post COD Realised Returns JSW's differentiated business strategy to enhance project equity IRRS *Company market analysis; COD: Commercial operations date; IRR: Internal Rate of Return 14#15Hydro Pumped Storage Projects (PSP) JSW Energy India's Market Potential Only 3.3 GWh operational out of 90 GWh potential . Hydro Power Obligations to bolster development of PSPS Waiver of ISTS charges also allowed for Hydro PSP JSW's Plans In Advanced Stages for 2.5 GW PSP • Signed MoUs with Govt. of Maharashtra for 1.5 GW Hydro Pumped Storage Projects and a Letter of Intent with Govt. of Rajasthan for 1 GW Hydro Pumped Storage projects • Water allocation approved • Applied for Environmental clearance . Techno economical feasibility studies are being done Supporting 2030 RE Target of 500 GW Hydro PSP to provide adequate peaking reserves, reliable grid operation and integration of variable. renewable energy sources Key Highlights: • Long Project Life Low construction cost and better PLF vis-à-vis conventional hydro projects Supports Grid Stability • High tariffs with attractive returns Identified further resources in Andhra Pradesh, Telangana, Orissa, Chhattisgarh and Karnataka Benefit of JSW's proven experience with managing the largest hydro portfolio in the private sector PSPs integrated with RE power can provide firm despatchable RE power Expected Timeline: • • Project Clearances: 3 Years (in progress since FY21) Project Construction: 3 Years (expected from early FY24) JSW Energy Investor Presentation Source: Central Electricity Authority I 15#16H₂ 2 6 Green Hydrogen JSW Energy . India's Market Potential Significant H2 demand India 2nd largest hydrogen demand base in the world - H2 demand expected to grow to ~24 MMT by 2050; can spur USD 65-70 Bn investments in incremental RE capacity National Hydrogen Mission • Announced in the Union Budget 2021 for making a hydrogen roadmap for the country Government announced Green hydrogen obligation for Fertilizers and Refinery sector India's Clean Energy commitments Green H₂ adoption can contribute to emission reduction in allied sectors India has low RE tariff's: Electricity is -80% of Cost of Green H₂ JSW's Plans ✓ To tap significant clean energy market opportunity in India and become a front-runner in a future hydrogen economy Signed an agreement with Australia's Fortescue Future Industries Pty Ltd (FFI) to collaborate and conduct scoping work on potential projects relating to the production of green hydrogen ✓ Green H2 Pilot Project at Vijayanagar the same is near completion ✓ Utilisation potential across: green steel making green ammonia • chemical derivatives . hydrogen mobility • other industrial applications - Scoping for I JSW Energy Investor Presentation Source: Press information Bureau - India, Company Market Research, Hydrogen Policy Study by ASSOCHAM 16#17MW Energy Products & Services - Value Unlocking All India Peak Demand Pattern (2021)1 180 170 160 150 140 130 Morning Peak Evening Peak 00:00 01:15 02:30 03:45 05:00 06:15 07:30 08:45 10:00 11:01 12:15 13:30 14:45 16:00 17:15 18:30 19:45 21:00 22:15 23:" JSW Energy Varying power demand requirements and rise of utility scale renewable projects is leading to innovative approaches that encourage pairing solar/wind with storage technologies to offer "round the clock" (RTC) and on-demand power supply. 1. Discoms: • To incrementally secure energy from renewable energy + energy storage sources to meet peak and off-peak power demand for RTC requirements Evolution of Renewable tenders from plain vanilla solar/wind to Hybrid & RTC tenders 2. Commercial & Industrial (C&I) Users: Innovative PPAs & tariffs with C&I customers (such as Metro, Large Offices) to meet varying power demand requirements All India power demand shows a peaking upward trend during morning & evening hours. ⚫Demand of 16-20 GW during these peaks vs a base demand of ~150 GW . • Generation resources needed to effectively meet base load and varying incremental load during multiple daily duration period(s). Solar Wind Hydro Pumped Storage D BESS RE coupled with Storage solutions and digital capabilities can lead to multiple products Green H2 Hydrogen/ Ammonia Emerging areas of using RE such as Green Hydrogen/Ammonia production to offer further value unlocking JSW Energy Investor Presentation 1 - Elekore Systems, 2- JMK Research 17#18Value Accretive Growth with Healthy Debt & Return Metrics JSW Energy 4.6 GW (Current) 10 GW 20 GW New Growth Platforms ~5x Further Upside ↑ ~2.5x ~3,000-3,200 Cr EBITDA -6x Further Upside ↑ -3x ~800 Cr PAT Net Debt/EBITDA JSW Energy Investor Presentation <4.5x < 4.0x 1.74x Maintained at a healthy level Existing Portfolio (4.6 GW) • . Generating healthy CF & returns 1 of >15% Steady operations and robust financial: Gross Cash Accruals (GCA) of > 2,000 Crore p.a. 86% of portfolio tied-up under Long Term PPA: Remaining Avg. Life of PPA: ~20) 0 years Remaining Avg. Life of Assets: ~30 years * Growth Portfolio: 1. Renewable Capacity Addition of ~15 GW by 2030 To have similar return profile of mid teen IRRS Existing 4.6 GW portfolio and new additions to generate strong cash flows to fund 2 GW p.a. growth upto FY30 and >3 GW p.a. growth post FY30 2. New Energy Growth Platforms to provide further Upside Calculated as GCA/Adj. NW. 18.6% average return over FY16-21 and 18% for FY21. FCFE/Adj. NW is -15% Adj NW Networth adjusted for non-strategic equity investments held 'Current' figures are as of FY21, except Net Debt/EBITDA which is as on Dec 31, 2021 18#19Key Risks/Concerns Demand risk (Clearing of PPA Backlogs) Receivable risk Domestic industry for capacity addition Adequately Addressing Key Risks and Concerns (1/2) • • Favourable Policy Support and Market Interventions Well established central agencies (SECI, NTPC) for managing PPAS Tripartite agreement (between developer, SECI, discom) to provide payment security to developers Discoms/offtakers entering into new renewable long-term PPAs at commercially attractive tariff given pick-up in economic activity resulting in increase (~12.6% YoY) in spot electricity prices Renewable Power Obligation for RE and Hydro Projects 40GW of solar parks planned - grid connectivity, land, water supply, clearances to be provided Payment security through mandatory provision of LCs before power off-take Late payment surcharge fees are charged for delays (at ~12% p.a) US$41bn reforms based, results linked scheme for Discoms Defined framework for recovery of costs due to ‘Change in Law' ~$600mm production linked incentive scheme for high efficiency PV modules ~$2,400mm scheme for ACC batteries • • • • JSW Energy Mitigation Strategy by JSW Energy Existing portfolio: 86 % PPA signed which forms about 94% of EBITDA U/C portfolio: All renewable projects PPA signed (except Kutehr, in advance discussion) Mix of Discom and C&I customer base Targeting new areas of demand through Green Hydrogen and Energy storage All plants placed favorably in States' Merit Order Dispatch Portfolio diversified across multiple off-takers No history of any bad debts from routine LT trade receivables Recovery of late payment surcharge in case of delayed payments from discoms Technology agnostic approach To benefit from domestic capacity addition JSW Energy Investor Presentation 19#20Adequately Addressing Key Risks and Concerns (2/2) JSW Energy كر Key Risks/Concerns Offtake Risk (revenue/volume) • Favourable Policy Support and Market Interventions Must-run status for renewable; Rule notified to provide regulatory support towards 'Must-run' status - Electricity (Promotion of generation from renewable sources of energy by addressing Must Run and other matters) Rules, 2021 Soundness of Auction framework Efficient and Transparent competitive bidding process. Innovative models emerging: Hybrid solar, Renewable-plus-storage Round-the-clock (RTC) renewable power Mitigation Strategy by JSW Energy Hydro plants under 'Must-run status' with no scheduling risk ~98% of LTPPA under two-part tariff; Plant Availability maintained above normative across locations to recover fixed charge; fluctuations in fuel cost and forex are completely pass through. Highest ever single bid capacity secured under any of the Indian renewable auction - 810 MW blended wind capacity awarded under SECI IX Grid Infrastructure capability • Development of dedicated Green Energy Corridors for evacuating RE capacity JSW Energy Investor Presentation • Participating in RTC bids . Pump Storage and battery storage solutions offer opportunity to address grid balancing issues 20 20#21Key Investment Highlights JSW Energy Superior project execution skills: Projects set-up in lowest cost & time Differentiated business strategy for growth to 20 GW, entirely by Renewable - commissioning Q4 FY22 onwards ✓ Foraying in New Energy Platforms: Green Hydrogen, Energy Storage, Energy Products & Services Proven Execution Excellence ✓ Focus on Sustainability Strong Focus on ESG - Leadership band with ‘A-' score in the 2021 CDP Climate Change assessment Amongst the Highest rated power generation company in India by various independent ESG rating agencies To be Carbon Neutral by 2050; Committed to set science based emission reduction targets (SBTI) الله 2 ✓ Sound operating efficiency characterized by one of the lowest O&M costs in the sector Efficient O&M ✓ Global best practices & recognition in Safety: JSW EBL awarded 'SWORD OF HONOUR' by British Safety Council Steady EBITDA and Cash accruals ✓ ✓ 84% of total portfolio tied up with LT PPA providing steady EBITDA and Cashflow generation Two-part tariff structure mitigating fuel and forex risk & ✓ Healthy Receivables ✓ Receivables decline 20% YoY in sharp contrast to a 2% increase in receivables in the Power sector Favorable placement in Merit Order Despatch & diversified off-takers mitigate Receivable risk 00 Strong Balance Sheet $ Low Cost of Funding ✓ Amongst the Strongest Balance Sheet in the sector: 1.74x Net Debt/EBITDA; 0.37x Net Debt/Equity Healthy debt metrics to be maintained while pursuing value accretive growth A healthy cash balance of ₹2,195 Cr and financial flexibility with JSW Steel equity shareholding ✓ Proactive Debt Management: Weighted average cost of debt at 7.82%, declining trend Raised a US$ 707 million green bond to refinance debt for hydro entity in May'21 JSW Energy Investor Presentation 24 21#22Agenda JSW Energy Investor Presentation Overview Step into the cak Growth Plans & Strategy Sustainability Appendix JSW Energy 22 22#23Framework and Priorities 17 Focus Areas with 2030 Targets from 2020 as Base Year Climate Change: Committed to being carbon neutral by 2050 Reduce our carbon emissions by more than 50% Renewable Power: Enhance the renewable power to 2/3rd of our Total Installed Capacity Waste 100% Ash (Waste) utilization JSW Energy Governance & Oversight by Sustainability Committee Mr. Sunil Goyal Biodiversity: No Net Loss for Biodiversity 2 Independent Directors Ms. Rupa Devi Singh Waste Water: Zero Liquid Discharge 1 Executive Director Mr. Prashant Jain Water Resources: Reduce our water consumption per unit of energy produced by 50% ESG Ratings MSCI BB CDP A- (Leadership Level) Resources Employee Wellbeing Social Sustainability Local Considerations Indigenous People Human Rights FTSE4Good Index constituent FTSE4Good Supply Chain Sustainability Sustainable Mining Air Emissions Business Ethics Cultural Heritage Energy Aligned to National & International Frameworks JSW Energy Investor Presentation IFC International Finance Corporation WORLD BANK GROUP Creating Markets, Creating Opportunities OECD UN GLOBAL ISO United Nations Global Compact SUSTAINABLE DEVELOPMENT GOALS UNITED NATIONS GUIDING PRINCIPLES ON BUSINESS & HUMAN RIGHTS NATIONAL GUIDELINES ON RESPONSIBLE BUSINESS CONDUCT Carbon Neutrality by 2050 SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION Committed to set science based targets to keep global warming to 1.5°C under SBTi Integrated Reporting since FY19 23#24• • Initiatives and Disclosures JSW Energy signed SDG7 Energy Compact Next Decade Action Agenda to advance Sustainable Development Goal 7 (SDG7) on sustainable energy for all Alignment with the 2030 agenda on SDG: JSW to become >80% Renewable by 2030 ENERGY COMPACT 7 AFFORDABLE AND CLEAN ENERGY • Alignment with Paris Agreement and net-zero by 2050 • JSW Energy launched an online ESG Profile A comprehensive ESG Data profile with ~300 factors across 10 sustainability frameworks • Link: https://www.jsw.in/energy/jsw-energy-esq • • JSW Energy Key Sustainability Initiatives during Q3 Undertaken development of Silvi-pasture plantation near Barmer plant for community welfare through increased green cover and cultivation of plants for animal fodder Achieved annual savings of 7,200 kwh/day in auxiliary power consumption by De- staging of Boiler Feed pump at Ratnagiri plant Rainwater 2 lakh m3 water recycled and utilized via Harvesting at Ratnagiri. • Near 100% waste fly ash utilisation across Vijayanagar, Ratnagiri, Barmer and Nandyal plants JSW Energy ESG Profile JSW Energy Investor Presentation Glimpses of Silvi-Pasture Plantation near Barmer Plant 24#25Recognition of Global Best Practices JSW Energy achieved a Leadership band with 'A-' score in the 2021 CDP Climate Change assessment JSW Energy is only Indian power generation company to achieve this level • • Higher than the Asia regional average of B- Higher than the Thermal power generation sector average of B Highest amongst the activity group (#48 companies) of thermal power generation (highest score here: A-) о only company in India one of the 2 companies in Asia one of the 12 companies in the world • One of the 19 companies (of 300 Indian companies) and the only energy company with this score A- Leadership B Management C Awareness 2021 CDP 2020 2019 JSW Energy JSW Energy (Barmer) Ltd awarded 'SWORD OF HONOUR' by British Safety Council Sword of Honour - 2021 + This is to certify that JSW Energy (Barmer) Limited has been awarded the British Safety Council Sword of Honour for 2021. In winning this award they have demonstrated an outstanding commitment to health and safety management during the last twelve months. Lawrance Dat Lawrence Waterman OBE Chair of The Board of Trustees 17 December 2021 Matth. Mike Robinson Chief Executive 17 December 2021 Betish Safety Council (Company Limited by Guaranteel Registered in England and Wales No. 4618713. Registered Charity No. 1097271 and OSCR No. SC037998 BRITISH SAFETY COUNCIL Certificate number AW-200172 JSW Energy Investor Presentation 25#26Board and Governance JSW Energy JSW Energy has a majority Independent Board (4/6 Directors are Independent) Name of Director Mr. Sajjan Jindal Nature Chairman & Managing Director Name of Director Nature Mr. Munesh Khanna Independent Director Mr. Prashant Jain Joint Managing Director & CEO Ms. Rupa Devi Singh Independent Director Mr. Chandan Bhattacharya Independent Director Mr. Sunil Goyal Independent Director Committee # Directors Of which Independent directors Core Principles of JSW Energy Audit 3 3 (100%) Accountability Social Responsibility Nomination & Remuneration 3 3 (100%) Risk Management 3 2 (67%) Stakeholders Relationship 3 2 (67%) CSR 2 (67%) Transparency 44 Integrity Environment Regulatory Compliance Sustainability 3 2 (67%) JSW Energy Investor Presentation 26 26#27JSW Energy Investor Presentation Agenda Overview Growth Plans & Strategy Sustainability Appendix JSW Energy 27#28Diffentiated Business Strategy Renewable Energy Market Opportunity & Growth Roadmap JSW Energy Investor Presentation Project Execution and Operational Financial Strength Excellence III JSW Energy Focus on Sustainability IV 28#29ՏՈ ■FY02 (Actual) 5% CAGR 1,275 Significant Market Opportunity: Power Demand Growth SW Energy Historically, Power demand has grown at a CAGR of ~5% Similar growth expected over next decade ■FY21 (Actual) 523 Base Demand (in BU) 78 190 5% CAGR Peak Demand (in GW) ■FY21 (Actual) +1,104 BU 5% CAGR 2,379 1,275 ■FY32 (Expected) Base Demand (in BU) +130 GW 320 6% CAGR 190 India is world's 3rd largest power producer, however has a low per capita consumption (~1/3rd of world average) Per Capita Power Consumption (kWh) Rapid urbanisation and universal electrification to drive power demand 13,098 8,010 4,906 3,957 3,260 2,570 1,181 984 Japan JSW Energy Investor Presentation China South Africa World Average Brazil India Indonesia Source: Central Electricity Authority Reports, Rajya Sabha 1-FY03-FY20 Peak Demand (in GW) • • Sustained economic growth has driven power demand in India: Correlation between Power Demand to GDP growth ~0.7x1 between FY03-20 Going forward, unlocking of demand from increased rural electrification and rapid urbanisation to drive demand for power 29#30Significant Market Opportunity: Demand to be met by RE JSW Energy • • India plans to achieve a low-carbon future, and be Carbon Neutral by 2070 India made 5 commitments at the COP26 summit: To increase its non-fossil energy capacity to 500 GW by 2030 To meet 50% of its energy requirements from renewable energy by 2030 To reduce the total projected carbon emissions by 1 billion tonne from now till 2030 To reduce the carbon intensity of its economy to less than 45% by 2030 To be carbon neutral by 2070 01-12 NOV 2021 GLASGOW COP26 IN PARTNERSHIP WITH ITALY RPO to provide filip to RE demand Demand to be met incrementally with Renewable Energy This 356 GW increase translates to 1,030 BU, which is inline with base demand growth of 1,104 BU 450 +356 GW In GW 5x 280 ↑ ■FY21 7x ■FY30 (Target) 140 ↑ 94 4x 38 40 Wind Solar Total Renewables India: Attractive market for Renewable Energy Investments EY's 'Renewable Energy Country Attractiveness Index' RPO as % of total power purchased as Discoms Commercial & Industrial well as Rank Country Rank Country Solar, 10.50% consumers have to adhere to renewable FY22 Total: 21.2% 1 US 8 Japan Hydro, purchase obligation (RPO) for procuring power 0.18% 2 China 11 Brazil 3 India 23 Argentinal Non Solar, 10.50% 4 UK 34 Vietnam 5 France 39 Thailand JSW Energy Investor Presentation Source: Source: Press Information Bureau, India, EY, CEA, MNRE 1- Calculated at est. 33% CUF 30#31JSW Energy: Growth Framework FY21 FY30e India's Renewable 94 Energy Capacity GW 356 GW addition 450 GW JSW 4.6 Energy's Portfolio GW ~15 GW addition 20 GW tot JSW Energy JSW Energy plans to add 15 GW renewable. capacity, which is -4% of overall renewable additions Applying stringent risk return criteria to target a niche. segment of market that can offer healthy returns No compromise on shareholder returns to meet growth Target mid-teen post-tax equity IRRS JSW Energy Investor Presentation 31#32Plan to become 20 GW by 2030 JSW Energy 20.0 Under- Construction 18.0 Targeted Pipeline 2.0 20.0 GW 2.0 16.0 2.0 14.0 12.0 2.5 GW U/C 10.0 8.0 2.0 2.0 GW 10.0 3.0 958 MW 240 MW GW 450 MW 810 MW 6.0 | Targeted Addition From Diverse Sources: Solar and Wind Bids RTC Bids Storage Bids ✓ C&I customers RE Power for Green H2 4.0 4.6 GW 2.0 FY21 SECI IX Wind SECI X Wind Group Captive Wind & Solar Kutehr Hydro Target Pipeline FY25e FY26e FY27e FY28e FY29e FY30e JSW Energy Investor Presentation > *75,000 Crore *16,660 Crore Capital Expenditure (Expected) Total Capex for reaching 20 GW Capex: 2.5 GW 32 32#33Renewable Energy Projects Under-Construction 2.5 GW Under-construction Projects SECI: Wind Projects Tamil Nadu: 1,260 MW SECI IX (810 MW) + SECIX (450 MW) Signed 25-year PPA with SECI Commissioning: progressively from Q1 FY23 Blended tariff Capex Group Captive: Wind & Solar Projects Karnataka: 825 MW PPA Solar 225 MW; Wind: 600 MW Signed 25-year PPA with JSW Steel Commissioning: Solar - from Q4 FY22 (Solar), Wind - progressively from Q1 FY24 Group Captive: Wind Project Maharashtra: 95 MW Signed 25-year PPA with JSW Steel Commissioning: progressively from Q4 FY23 Land & Resources Transmission • Equipment JSW Energy 3.08/unit (excl. hydro) •Total: 16,660 Crore Committed: 7,000 Crore, including a spent of ~1,660 Crore Signed for 2.2 GW Acquired/Locked-in Construction progressing well for dedicated transmission lines for all projects • 1.4 GW wind turbines ordered Delivery to start in Q1 FY23 1993 MW 225 MW 240 MW I Map for illustrative purposes, showing project locations Group Captive: Wind Project Tamil Nadu: 38 MW Signed 25-year LT PPA with JSW Steel Commissioning: progressively from Q4 FY23 Kutehr Hydro Project Himachal Pradesh: 240 MW 3x80 MW Run-of-the-river Hydro Power Plant PPA under finalization with Haryana Discom Commissioning: September CY24 ☐ Expected Commissioning FY22: 100+ MW FY23: 1200+ MW FY24: 700+ MW FY25: 240 MW (Kutehr) Modular/phased commissioning to provide accelerated cashflow generation JSW Energy Investor Presentation 33#34|| Proven Project Execution and Operational Excellence JSW Energy Prudent and consistent capital allocation strategy for growth over a 25 year history JSW Energy has one of the lowest project execution cost in the industry Project Location Capacity MW Project cost *Crore/MW 1st COD $mn/MW2 Year Business model resilient despite several sectoral headwinds over the last decade Coal-based Nigrie 1,320 7.92 0.11 2014 Janjgir-Champa 1,200 7.02 0.09 2014 Warora 600 6.25 0.08 2013 Sound operating efficiency characterized by one of the lowest O&M Cost/MW Padampur 540 6.18 0.08 2013 Chandrapur 600 6.22 0.08 2014 Amarkantak 600 5.23 0.07 2009 Maithon 1,050 5.24 0.07 2011 O&M Expenses (Lakh/MW) Udupi 1,200 4.67 0.06 2010 JSW : Ratnagiri³ 1,200 4.60 0.06 2010 19.4 19.3 JSW: Vijayanagar 260 4.34 0.06 2000 18.7 17.9 16.1 JSW: Vijayanagar 600 3.28 0.04 2009 1 Lignite Based Giral 250 7.69 0.10 2011 FY17 FY18 FY19 FY20 FY21 Barsingsar 250 7.00 0.09 2010 JSW: Barmer 1,080 6.63 0.09 2009 JSW Energy Investor Presentation (1) High capital cost due to CFBC boilers for lignite based power plant (2) USD/INR = 74.5 (3) Includes FGD Cost Source: Respective Company filings 34#35|| Life-cycle Approach towards Renewable (1/2) JSW Energy Project Selection Philosophy Project Construction and Land Acquisition Power Evacuation Stringent risk return metrics Bidding with conservative CUF assumptions of P-90 High quality offtakers Captive PPAs with JSW Group companies (strong credit ratings) at arm's length pricing De-scoping of EPC packages to have competitive edge Synergies with group businesses (steel, cement, paints, etc.) for better material availability Systematic approach of deploying in- house experienced land acquisition team in all resource-rich states Deployed experienced legal teams for title search and execution of lease deeds; dedicated team for securing Right-of-Way (ROW) Strategic selection of ISTS substations for connectivity with high capacity margins to facilitate future expansions Identification of land parcel near to substation in order to reduce transmission line cost Effective due diligence & route surveys for risk mitigation Futuristic planning & designing to optimize use of evacuation infrastructure JSW Energy Investor Presentation 35#36|| Life-cycle Approach towards Renewable (3/2) JSW Energy Supplier & Vendors Robust selection process through competitive route; Award of packages to best-in-class / Tier-I vendors only Comprehensive Contracts with strong performance & product warranty and performance bank guarantee provisions Developing strong relationships with all major OEMs, EPC contractors, BoP contractors JSW Energy Investor Presentation . • • • Quality Control O&M Dedicated team for quality assurance Standard operating procedure for quality checks Special checks on quality & type test certifications Implementation of TQM, ISO and other relevant standards Skilled in-house O&M team Continuous implementation of innovative practices to further optimize O&M cost through TQM Operating Stations supported by experienced professionals at corporate office in areas such as Policy, Regulatory, Design & Engineering, Finance, Construction & Maintenance and HR 36#37|| Locked-in Resources JSW Energy ✓ Systematic approach of deploying in-house experienced land acquisition team in all resource-rich states ✓ Deployed experienced legal teams for title search and execution of lease deeds; dedicated team for securing Row ✓ Acquired/ Locked-in sites in resource rich states, along with requisite transmission connectivity ✓ Signed MoUs with Govt. of Rajasthan for 10 GW and with Govt. of Maharashtra for 5 GW Renewable energy resources ✓ Signed MoUs with Govt. of Maharashtra for 1.5 GW Hydro Pumped Storage Projects and a Letter of Intent with Govt. of Rajasthan for 1 GW Hydro Pumped Storage projects Acquired resources for 2.5 GW, which is under- construction JSW Energy Investor Presentation Another 18 GW is locked-in 10+ GW resources in process 37#38III Financial Strength Consolidated Trade Receivables* (* Crore ) 20% YoY 1,693 1,769 1,356 Dec 31, 2020 Sep 30, 2021 Dec 31, 2021 Receivable Days 87 92 68 • • JSW Energy JSW Energy has sufficient balance sheet headroom & strong cashflow to pursue growth to 20 GW by FY30 Net Debt/EBITDA: 1.74x Net Debt/Equity: 0.37x Wt. Average Cost of Debt: 7.82% Effective management of Trade Receivables Receivables declined 20% YoY in Q3 FY22 This is in sharp contrast to the power sector scenario which has witnessed 2% increase** YoY QoQ values not strictly comparable due to seasonality in hydro. plant operations All plants placed favourably in States' Merit Order Dispatch Further, Hydro plants under 'Must-run status' with no scheduling risk о Payment security mechanism in force for power tied under long term PPA with discoms; Recovery of late payment surcharge in case of delayed payments from discoms Prudent approach to Balance Sheet and Receivable Management – a key financial strength - JSW Energy Investor Presentation Includes Unbilled Revenue **Source: Praapti 38#39SD Targets IV Sustainability: Targets & Strategy FY20 Actuals FY30 Targets Improvement . 'Climate Change • O GHG Emissions tCO₂e/MWh 0.76 0.304 • 60% JSW Energy Strategic Initiatives and Approach Increased share of renewable energy for deep decarbonization Process efficiency improvements Replacement of condenser tubes with graphene coatings • Maintain zero liquid discharge across operations • Water Specific fresh water 1.10 0.591 46% • Security intake (m3/MWh) Specific Waste (Ash) Generation 0.070 0.032 54% Waste (t/MWh)* • • Optimising utilisation of rain water harvesting system Installation of technology for operating cooling towers with higher Cycles of Concentration with modified chemical regime Reuse of treated effluent of Sewage Treatment Plan for horticulture Integrated Strategy towards efficient waste management Optimizing utilisation of low ash coal . Waste Recycled - 100 100 Ash (%) Specific process emissions (Kg/MWh) Air 0.16 0.053 67% • • PM Ensuring ESP (Electrostatic Precipitator) Fields availability Emissions • • SOX 1.78 0.683 61% • • NOX Optimising Lime dozing system efficiency Process efficiency improvements 1.01 0.373 63% Achieve • Biodiversity • Biodiversity at our operating sites 'no net loss' Continue to enhance Biodiversity at all our locations and operations to acheive 'no net loss' of biodiversity • Increase green cover across operations JSW Energy Investor Presentation *Estimated for FY20 39#40Climate Change Water Security Waste IV Sustainability: FY21 Performance Key Highlights • • • • Steam turbine modernization in 300MW units at Vijayanagar Replacement of Condenser tubes with graphene coating at Vijayanagar Commissioned 1.06 MWp Solar Plant at Sherpa Camp at Hydro plant Sustainability Committee formed for low carbon strategy Operate Cooling tower with higher Cycles Of Concentration with modified chemical regime • Operate Existing Effluent recycle plant with 100% utilization • Efficient Utilization of rainwater for plant & township use . Effective utilisation of 100% of fly ash generated Fly ash supplied to Cement & Brick industries • Calibration of Low NOx burners at Vijayanagar Air • Use of low Sulphur coal at Ratnagiri Emissions Modification of ESP resulting in reduction of Dust at Barmer Biodiversity JSW Energy Investor Presentation Plantation of local species by cultivating in own nursery at Ratnagiri Two local NGOs engaged for restoration and protection of habitats at Barmer Watershed area taken under development of Silvi-pasture plantation at Barmer JSW Energy Performance Scope 1 emissions ('000 tCO2e) CO2 intensity (tCO2e/MWh) 0.76 17,201 0.68 14,481 FY20 FY21 FY20 FY21 Ash Utilisation (%) PM Emissions (kg/MWh) 0.16 100 100 0.14 FY20 FY21 FY20 FY21 SOx Emissions (kg/MWh) 1.78 NOx Emissions (kg/MWh) 1.01 1.65 0.95 FY20 FY21 FY20 FY21 40#41IV ESG Performance amongst the best in the sector Board & Governance % Board Independent 67 56 50 50 50 44 40 0.36 ddo Air Emissions JSW Energy Water & Waste Management CO2 Intensity (t CO2e/MWh) Specific Fresh Water Consumption (m3/MWh) 0.84 0.68 0.69 3.3 2.9 1.21 JSW Energy Peer 2 Peer 1 Peer 4 Peer 5 Peer 6 Peer 3 JSW Energy Peer 2 JSW Energy Peer 1 Peer 3 Peer 3 Peer 2 % Audit Committee Independent Specific NOx Emissions (Kg/MWh) 100 100 83 75 67 67 33 1.86 Ash Utilisation (%) 100 100 100 100 100 79 1.93 0.95 0.12 JSW Energy Peer 2 Peer 1 Peer 4 Peer 5 Peer 6 Peer 3 JSW Energy Peer 1 Peer 2 Peer 4 Peer 5 Peer 3 Peer 2 JSW Energy Peer 1 Peer 3 % Nomination & Remuneration Committee Independent ESG Ratings* Specific SOx Emissions (Kg/MWh) 4.94 100 100 100 75 67 67 50 CDP MSCI 2.97 1.65 0.01 JSW Energy Peer 6 Peer 1 JSW Energy Peer 1 Peer 3 Peer 6 Peer 2 Peer 5 Peer 4 Peer 2 JSW Energy Peer 1 Peer 3 Peer 5 Peer 3 Peer 2 Peer 4 ABCCDEF A- JSW Energy Peer 6 BB A Peer 1 Peer 4 BB CCC JSW Energy Investor Presentation Peers include: Adani Green, Adani Power, CESC, NTPC, Tata Power, Torrent Power Source: Company Annual Reports, Maybank Kim Research; Data as of FY21, as per available public disclosures *CDP Rating Climate Change Assessment - 2021 - 41#42JSWEL Barmer Ratnagiri IV Awards & Recognitions Vijayanagar Hydro JSW Energy JSW Energy Great • • • • . • • Certified as 'Great Place to Work' Organisation in 2021 Won Golden Peacock Award For Occupational Health & Safety-2021 National Energy Conservation Award-2020 by Ministry of Power Rajasthan Energy Conservation Award-2020 Achieved Five-star grading in the British Safety Council's Occupational Health and Safety Audit in FY21 Awarded 'National Efficiency Awards 2021' for Best Energy Efficient Plant- Lignite by Mission Energy Foundation Awarded the 2021 Sword of Honour by the British Safety Council for excellence in Occupational Health and Safety Recognized as 'Energy Efficiency Unit' at the CII National Award for Excellence in Energy Management -2020 Awarded State Award for Excellence in Energy Conservation & Management, by Maharashtra Energy Development Agency in FY21 Awarded 'The Best Operating Thermal Power Generator' by Independent Power Producers Association of India (IPPAI) in FY21 Winner (Gold Category), by SEEM National Awards for Energy Conservation and Management in FY22 Place Το Work® Certified JAN 2022 JAN 2023 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 in FY21 Recognized as 'Energy Efficiency Unit' at the CII National Award for Excellence in Energy Management - 2020 & 2021 Golden Peacock National Quality Award for the year 2021 under Power sector (Generation) Grow Care India Environment Award-2020 (Gold Shield) Grow Care India Safety Award-2020 (Gold Shield) Silver (Runner-up) Award at 9th FICCI Safety system Excellence awards in FY22 INDIA JSW Energy Investor Presentation 22 42#43This presentation has been designed using resources from Flaticon.com SW Energy Investor Relations Contact: [email protected] ESG Data Profile: Link BETTER EVERYDAY