JSW Energy Limited Investor Presentation May 2015

2

Agenda

Overview Value Proposition Business Environment

Appendix

3 * Listed company

JSW Group – presence across the core sectors

JSW Steel*: India’s leading integrated steel producer (Steel Capacity: 14.3MTPA )

JSW Energy*: Engaged across the value chain of power business (Operational Capacity: 3,140MW)

JSW Cement: Slag cement plant of 5.3MTPA capacity

JSW Infrastructure: Engaged in development and operations of ports (Goa, Jaigarh, and Dharamtar Port)

JSoft Solutions: An IT & ITES arm of JSW group

4 * Capacity would increase to 4,531MW upon completion of Baspa II & Karcham Wangtoo Hydro Assets’ acquisition under the scheme of arrangement pending before the Himachal Pradesh High Court and receipt of other approvals

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 ~9 bn units in FY15

Operational transmission line – JV with MSETCL: two 400KV transmission lines

Currently operational capacity: 3,140MW*

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

Rajasthan (lignite): Kapurdi (operational with capacity of 7MTPA) and Jalipa (under development) mines; mineable reserves of 441mn tonnes

5 1) Capacity would increase to 4,531MW upon completion of Baspa II & Karcham Wangtoo Hydro Assets’ acquisition under the scheme of arrangement pending before the Himachal Pradesh High Court and receipt of other approvals, 2) 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, 3) Subject to mutually agreed adjustments, 4) USD/ INR = 60, 5) denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant

Established energy company with 3,140 MW operational capacity…. proposed increase to 4,531 MW1

Proximity to load centre/fuel source/infrastructural facilities

Vijayanagar: 860MW

Configuration: 2 X 130MW and 2 X 300MW Units operating: since 20005

Technology: Sub-critical TPP Fuel Source: Gas & imported thermal coal Power Offtake: Merchant & Long Term PPA Project Cost4: INR 30,960mn/ $516mn

Ratnagiri: 1,200MW

Configuration: 4 X 300MW Units operating: since 20115

Technology: Sub-critical TPP Fuel Source: Imported thermal coal Power Offtake: Long Term PPA & Merchant Project Cost4: INR 54,942mn/ $916mn

Barmer: 1,080MW

Configuration: 8 X 135MW Units operating: since 20105

Technology: Sub-critical pithead lignite based TPP Fuel Source: Captive lignite mines of BLMCL2

Power Offtake: Long Term PPA Project Cost4: INR 71,660mn/ $1,194mn

Operational

Subject to acquisition of the assets1

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

Units operating: Baspa II since 2003 and Karcham Wangtoo since 2012

Technology & Fuel Source: Hydro Power Offtake: Long Term PPA and Merchant Enterprise Value to JSW Energy4: INR 97,000mn/ $1,617mn3

6 USD/ INR = 60

Proven track record

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

FY12 FY15

CAGR FY12–15: 15% Total Revenue INR 62,654mn / $1,044mn INR 96,103mn / $1,602mn

CAGR FY12–15: 34% EBITDA INR 15,944mn/ $266mn INR 38,535mn/ $642mn

CAGR FY12–15: 6% Capacity (MW) 2,600 3,140

Diversifying fuel sources Fuel Type Thermal Coal Thermal Coal & Lignite

CAGR FY12–15: 14% Net Generation (MUs) 13,594 20,307

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 FY12–15: 99%

Profitable and dividend paying since listing PAT INR 1,701mn/ $28mn INR 13,495mn/ $225mn

7

Corporate strategy

Selective

Growth

Diversification of Fuel Mix and Off-

take Arrangements

Focus on Resource Optimization

Strengthening Presence Across the Value Chain

Prudent Balance Sheet Management

Efficient capital allocation for organic growth

Pursue selective inorganic growth opportunities which will enhance cash flows and be RoE accretive

Increasing proportion of Long Term PPAs – goal to reach over 85% of total

Diversify both fuel mix and source – thermal coal, lignite and hydro

Committed to robust mix of sustainable eco-friendly technologies

Focus on prudent O&M practices and higher plant efficiencies

Continue to evaluate opportunities across the value chain – from mining, equipment manufacturing, generation, transmission and distribution for creating long term value

Retain prudent financial profile

Manage growth and debt profile to capture market opportunities without excessive risk

8 1) Calculated as INR 2.38/unit as per the interim tariff order against our tariff petition of INR 2.48/ unit

Business challenges and mitigation strategies

Barmer:

Fuel availability, PLF

Final tariff order

Received environmental clearance from Ministry of Environment, Forests & Climate Change (MoEFCC) for Kapurdi mine to increase the mining capacity from 3.75 MTPA to 7 MTPA until FY18

Expect to operationalize Jalipa mine in FY16

Barmer plant consistently operating above normative PLF

Expect final tariff order by FY16, current provisional tariff order covers ~96%1 of fixed cost petitoned

Ratnagiri:

Lower demand impacting scheduling and PLF

Under-recovery on PPA with state Discom

FY15 PLF – 73% (versus 71% in FY14) –

• LT PPA proportion improved to 773 MW on CERC norms

Filed petition for compensatory tariff with MERC under “force-mejure” clause of the PPA

Vijayanagar:

Reliance on merchant sales

While demand for merchant power remains strong, opportunity to tie up long term PPA looks promising over the next two years

Exposure to imported coal prices and currency volatility

Thermal coal price corrected in sync with global energy prices

Prudent Hedging policy for coal imports

9

Audit Committee Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system,

compliance with regulations by the Company and its subsidiaries

Comprises of four Non-Executive Directors

Nomination and 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 of remuneration to managerial personnel

Formulate criteria for independence of Director, evaluation of Independent Directors, policy on Board diversity

Comprises of three Non-Executive Directors

Stakeholders Relationship Committee

Responsible for the functioning of the investor grievances redressal system

Comprises of two Non-Executive Directors

Risk Management Committee

Periodically reviews risk assessment and minimization procedures

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

Sound Corporate Governance

All key committees in place, having adequate independent director representation

10

Agenda

Overview Value Proposition Business Environment

Appendix

11

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

12 1) High capital cost due to CFBC boilers for lignite based power plant

USD/ INR = 60

Efficient Capital Allocation and Execution Capabilities

Vijayanagar (2000-2001): 260 MW @ INR 43.42mn/MW (~$0.72mn/MW)

Vijayanagar (2010): 600 MW @ INR 32.78mn/MW (~$0.55mn/MW)

Ratnagiri (2011-2012): 1,200 MW @ INR 45.78mn/MW (~$0.76mn/MW)

Barmer (2010-2013): 1,080 MW @ INR 66.36mn1 /MW (~$1.11mn/MW)

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

1

13

JSW

En

erg

y St

and

alo

ne

4

81%

93%

81% 83%

70% 64% 62% 61%

FY12 FY13 FY14 FY15

JSW Energy Standalone PLF All India private sector thermal power plants' PLF*

*Source-CEA

1) Deemed PLF, 2) Vijaynagar’s SBU I (260MW) or SBU II (600MW) received either the Bronze Shield or the Silver Shield in the category of ‘Performance of Thermal Power Stations’ for FY07/FY08/ FY09/ FY10/ FY11 and the Gold Shield for FY12 and FY13, 3) 4QFY14 PLF was lower due to fuel availability related back-down during Feb-Mar’2014, 4) Includes Vijaynagar (860MW) and Ratnagiri (1,200MW) plants

Portfolio of Efficient Operating Assets

Among the best run thermal power plants in India on a consistent basis

Vijayanagar plant has been consistently recognised as a top performing operating power plant by the Ministry of Power for 7 consecutive years2

Benchmark O&M practice resulting in consistently higher PLFs

2

Industry leading PLFs driven by O&M and execution expertise

Raj

We

st P

ow

er

PLF

1

73% 78% 87%

34%3

92% 88% 77%

87%

1Q

FY1

4

2Q

FY1

4

3Q

FY1

4

4Q

FY1

4

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

4

14

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

^ Capacity would increase to 4,531MW upon completion of Baspa II & Karcham Wangtoo Hydro Assets’ acquisition under the scheme of arrangement pending before the Himachal Pradesh High Court and receipt of other approvals

1) short-term arrangements also includes other arrangements

Lower fuel risk, resilience to sector dynamics

Fuel sources –

o Thermal coal

o Lignite, and

o Hydro

4

66%

45%

34%

24%

31%

3,140MW* 4,531MW^

Imported coal Lignite Hydro

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

Short term:

Ability to capitalise on better realisations

Ability to respond to demand fluctuations and shortages

Long term:

Stable cashflows, pre-defined returns

Insulated from inflation and fuel price movement, declining tariff

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

59% 66%

41% 34%

3,140 MW 4,531 MW^

Long Term Short Term 1

3

15

FY14 Return on Capital Employed (%2)

15.60%

11.46% 10.85% 9.96%

8.99%

5.70% 5.65%

JSW Energy CESC Standalone

NTPC Tata Power R Power Adani Power JPVL

FY14 EBITDA Margin (%1)

38.77%

70.79%

37.02% 30.45%

26.01% 24.94% 19.91%

JSW Energy JPVL R Power Adani Power CESC Standalone

NTPC Tata Power

FY14 Return on Net Worth (%)

11.49% 13.11%

9.26%

5.27%

0.96%

-2.43%

-4.44% JSW Energy NTPC CESC

Standalone R Power JPVL Tata Power Adani Power

Source: Other company data from CARE research

1) EBITDA Margin = EBITDA/ Net Revenue, 2) RoCE = EBIT/ Average Capital Employed

Robust Financial Profile

Sector leading margins and return ratios

Dividend paying track-record since listing in 2010

5

16

FY14 Net Debt/Equity (x)

1.36

0.37 0.68 1.29

3.14

5.95

7.00

JSW Energy CESC Standalone

NTPC R Power Tata Power Adani Power JPVL

Source: Other company data from CARE research

Robust Financial Profile

FY14 Net Debt/EBITDA (x)

2.58 1.81

2.99

4.71

8.01

11.72 13.09

JSW Energy CESC Standalone

NTPC Tata Power Adani Power JPVL R Power

Well capitalised balance sheet, best positioned to tap growth opportunities

Free cash positive for last three years, despite sector specific challenges

5

17

Well poised to capitalise on improving sector fundamentals

Regulated sector Stability of cash flows takes precedence over growth

Increase share of long term PPAs to over 85%

Leverage low fixed cost advantage for upcoming Case 1 Bids

Capital allocation Prudence as key to sustainable value creation

Put on-hold growth projects when sector fundamentals were uncertain

All existing long term PPAs with pass-through of energy/fuel cost as per applicable regulations

Coal block auctions Opportunity to secure fuel Coal auctions may provide potential to enhance our

organic growth

Policy environment /Inorganic growth opportunity

Sector looking ripe for consolidation and growth –projects with low risk to cash flow

Well positioned to:

capitalise on strong balance sheet

capitalize on expected consolidation of the power sector

JSW Energy’s Advantage / Approach

18

Agenda

Overview Value Proposition Business Environment

Appendix

19

Coal 1,64,636

62%

Gas 23,062

9%

Diesel 1,200

0%

Hydro 41,267

15%

Nuclear 5,780

2%

RES 31,692

12%

India – installed power capacity

Source: CEA

Private sector contributes 37% of the total installed capacity

Coal based capacities contributes 62% of the total installed capacity

Sector-wise Installed Capacity – 267.6 GW (as on Mar 31, 2015)

Mode-wise Installed Capacity (as on Mar 31, 2015)

State 96,963

36%

Private 98,153

37%

Central 72,521

27%

20 Source: CARE Research

Demand-supply scenario

-40%

-20%

0%

20%

40%

60%

80%

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5E

FY1

6E

FY1

7E

GUJ MP

MAHA CHG

Western states remain surplus...with Maharashtra remaining in marginal deficit

Southern states to remain in deficit...albeit deficit expected to come down in AP marginally

-20%

-16%

-12%

-8%

-4%

0%

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5E

FY1

6E

FY1

7E

AP KTK TN

21 Source: CARE Research

Indian demand growth and thermal coal prices

International thermal coal prices expected to remain subdued in the next 1-2 years

Demand growth at multi-year low…demand to grow at 5.7% CAGR during FY14-17 with gradual pick-up in

economy..

50

70

90

110

130

Mar

'09

Sep

'09

Mar

'10

Sep

'10

Mar

'11

Sep

'11

Mar

'12

Sep

'12

Mar

'13

Sep

'13

Mar

'14

Sep

'14

Co

al p

rice

(U

S$/t

on

ne

)

Richard Bay

HBA

Newcastle

69

1

73

9

77

7

83

1

93

7

99

5

1,0

49

1,1

22

1,1

95

1,2

73

0%

2%

4%

6%

8%

10%

12%

14%

0

200

400

600

800

1,000

1,200

1,400

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5E

FY1

6E

FY1

7E

Po

we

r D

em

and

(B

Us)

% growth

22

Agenda

Overview Value Proposition Business Environment

Appendix

23

Kutehr hydro project – under implementation

Gross capacity 240 MW (3 x 80)

Technology Run-of-the-river Hydropower

Water allocation Ravi river

Power Off take

Free power to HP state government: 12% to 30% of delivered energy for 40 years, balance through long term arrangements

Project Cost

Total: INR17,980mn Amount spent till Mar 31, 2015: INR2,380mn

Project Details

Techno-economic clearance from CEA received MOEF accorded Forest stage-I & II clearance &

environment clearance Implementation agreement signed with HP

government Consent to Establish obtained from HP State pollution

control board Commenced enabling works related to the project

Initiated process for award of EPC contracts Majority land is acquired

Status Update

24 * Under implementation

Opportunity for organic growth

Ratnagiri and Chattisgarh projects on hold, which can be revived with low gestation offering geographical diversification

Ratnagiri: 3200 MW

Land Available

Water Available

EC Pending

Vijayanagar: 660 MW*

Land Available

Water Available

EC Available

Kutehr: 240 MW*

Land Available

Water Available

EC Available

Chhattisgarh: 1,320 MW

Land Available

Water Available

EC Available

25 * Capacity would increase to 4,531MW upon completion of Baspa II & Karcham Wangtoo Hydro Assets’ acquisition under the scheme of arrangement pending before the Himachal Pradesh High Court and receipt of other approvals

Recent acquisition of Hydro Assets - Rationale

Enhanced Scale of operation

- Capacity increase from 3140 MW to 4531 MW*

Portfolio diversification with operational hydro assets

- Thermal – 3140 MW & Hydro – 1391 MW*

Balanced Mix of PPA Basket

- LT PPA – 2,988 MW (66%) and Merchant – 1,543 MW (34%)

All projects commissioned, have PPAs on regulated two-part tariff

- Cash flow and earnings accretive immediately

Well built hydro power plant with low execution risk

- Stable hydrology, proven operational track record, high plant availability, low O&M costs

Value enhancing strategic fit with high quality assets

26

Strong financial track record

^ Subject to approval of shareholders

Key financial parameters FY13 FY14 FY15

EBITDA Margin (%) 32.9 38.8 40.1

Return on Net Worth (%) 14.6 11.5 18.6

EPS (INR Per Share) 5.51 4.60 8.23

DPS (INR Per Share) 2.00 2.00 2.00^

Profit making entity since inception

Dividend paying track-record since listing

Free cash positive

Well capitalised balance sheet/ low gearing ratios

Robust financial profile in a challenging environment

62,654

91,477 89,076 96,103

15,944

30,066 34,536

38,535

0

8,000

16,000

24,000

32,000

40,000

-

20,000

40,000

60,000

80,000

1,00,000

FY12 FY13 FY14 FY15

Total Revenue (INR mn) EBITDA (INR mn, RHS)

91,191 94,049

89,205

75,739

1.60 1.52

1.36

1.01 0.90

1.10

1.30

1.50

1.70

1.90

70,000

80,000

90,000

1,00,000

FY12 FY13 FY14 FY15

Net Debt (INR mn) Net Debt to Equity

27

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

28

Thank you