Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (June 2024)
55 slides from Jsw Steel's investor presentation, June 2024
Slide 1: Corporate Presentation June 2024
Corporate Presentation June 2024 JSW Steel Corporate Presentation: June 2024 1
Slide 2: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 3: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 12 Digitalisation at JSW Steel 38 Appendix 42 JSW Steel Corporate Presentation: June 2024 3
Slide 4: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: June 2024 4
Slide 5: Sustainability at JSW Steel
Sustainability at JSW Steel ESG Focus Areas Driving Sustainability Initiatives Across Platforms Environment Social Climate Energy Resources change Indigenous Cultural Employee people heritage wellbeing Water Waste Waste Water resources Local Social considerations sustainability Air Biodiversity Sust
Slide 6: Targeting Net Zero by 2050
Targeting Net Zero by 2050 Short-Term Medium and Long-Term Ensuring Renewable Power Commercial Deployment Nature Based Use of Syngas & TGR1 in Energy Efficiency (Energy Transition) of Green Hydrogen for Solutions BF (Carbon Circularity) Steelmaking Actively Improving Enhancing Process Scrap-based EA
Slide 7: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: June 2024 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • 9.8 GW power generation • Second largest private port • Capacity of 20.6 mtpa, growing • Consol. capacity of 36.2* mtpa, portfolio by end-CY24 operator in India, 170 mtpa to ~40 mtpa growing to 43.5 mtpa by Sep’27 • Targeting 20GW generatio
Slide 9: JSW Steel: Among India's Leading Steel Manufacturers
JSW Steel: Among India’s Leading Steel Manufacturers One of the leading steel players Diversified product portfolio Integrated manufacturing process in India • Extensive product portfolio • Most geographically diversified steel • From raw material processing plants Hot-rolled, cold-rolled & coated c
Slide 10: Transformational Growth and Value Creation
Transformational Growth and Value Creation India Capacity (mtpa) Total Revenue (₹ 000’s Cr) EBITDA (₹ 000’s Cr) CAGR FY02-Current: 15% CAGR FY02-24: 24% CAGR FY02-24: 23% 34.7 167.0 176.0 39.0 147.9 27.0 27.7 28.2 18.0 18.0 85.0 80.4 19.0 20.1 18.5 73.9 11.9 7.8 19.5 4.2 1.6 1.6 0.3 FY02 FY10 FY20 F
Slide 11: Strategic Priorities to Create Shared and Sustainable Value
Strategic Priorities to Create Shared and Sustainable Value Cost leadership Being future Enhance value- Mainstreaming through ready through Strategic growth added product Strong financial sustainability resource technology-led with efficient portfolio with profile and across the optimisation and tra
Slide 12: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: June 2024 12
Slide 13: JSW Steel: Key Investment Highlights
JSW Steel: Key Investment Highlights Leading steel producer in India with plans to expand domestic capacity to 42mtpa by Sep’27 and to 1 Size, Scale & Growth 50mtpa by FY31 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins fu
Slide 14: Leading and Most Geographically Diversified Steel Producer in India
1 Leading and Most Geographically Diversified Steel Producer in India India International Europe Rajpura BPSL Chandigarh Bawal Piombino, Italy BPSL Kolkata Kalmeshwar Plate & Coil Mill, Anjar USA Khopoli Vasind & Tarapur BPSL Jharsuguda: 5.01 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa Ohio: 1.5 mtpa Vij
Slide 15: Strong Fundamentals for India Steel Demand
1 Strong Fundamentals for India Steel Demand Significant room for Healthy Steel Demand Outlook in India growth in steel India Steel: Strong Fundamentals (mt) consumption in India Production-Linked Government Capex (INR tn)2 China, Incentive Scheme1 Crude Steel Crude Steel Finished Steel 646 11.1 Cap
Slide 16: JSW Steel: Growth Path
1 JSW Steel: Growth Path India Capacity U.S. Capacity Vijayanagar JISPL Dolvi 36.2 43.5 51.5 1.5 2 8.0 50.0 1.5 2.0 5.0 42.0 1.5 0.3 36.7 Growth Options in the Portfolio 34.7 Organic • Brownfield growth potential of ~5mt at each of Vijayanagar and BPSL • 4mt brownfield Green Steel in 2 phases • Gree
Slide 17: JSW Steel: Transforming Scale and Profitability
1 JSW Steel: Transforming Scale and Profitability India Capacity (mt) U.S. Capacity (mt) EBITDA (₹ cr) Share of 25% 53% 61%3 VASP1 55 51.5 50 1.5 35000 3 50.0 45 ₹28,236cr 43.5 1.5 30000 40 42.0 36.2 25000 35 1.5 ₹18,952cr 2 30 6.5 20000 25 28.2 15000 ₹9,165cr 19.5 20 1.5 10000 15 18.0 14.3 5000 10
Slide 18: One of the Lowest Costs of Conversion Globally
2 One of the Lowest Costs of Conversion Globally Resilient business model based on continued focus on cost leadership WSD Aggregate Ranking1 Leading position on global conversion cost curve – Conversion cost of c.$149/tonne in FY23 # 5 ranked in Asia Technology, analytics and innovation continue to
Slide 19: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 13 operational captive iron ore mines Raw material security ensuring raw material supply Steel Plants • Operating 9 mines in Karnataka (7mtpa capacity) and 4 mines in Odisha (20- Karnataka – 9 mines Mines 25mtpa) • 236 MnT of aggregate JV and Associates- Steel Plan
Slide 20: Steel Products for Diverse Applications
3 Steel Products for Diverse Applications Infra & Construction Consumer Durables Pipes & Tubes • Buildings (Resi. & Commercial) • Refrigerators Key Products • Roads • Air Conditioners • Bridges • Home Appliances • Metro & other Urban Infra • Tinplate for Packaging • HR Plates, • Airports • Oil & Non
Slide 21: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Super premium, colour coated coils & sheets, with a 20 year warranty Colour Coated • Premium colour coated coils & sheets, with a 15 year warranty • 3 variants - Cool Roof, Anti Dust & High Gloss • High quality Al-Zn alloy & colour
Slide 22: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales Tinplate • Tinplate coils and sheets with high strength and formability, used in food and non-food packaging Galvanised • Lead-free Galvanized steel, suited for consumer durables with high safety and non-hazardous material needs • Pr
Slide 23: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales Strong distribution reach across India JSW Steel’s branded Products • Presence in around 17,500 retail stores across more than 530 districts in India • Strong distribution channel of 2,528 points o 2,059 Branded Stores o 700 JSW Shop
Slide 24: JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel
3 JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel Solar Structures • JSW Steel has developed a new coated product for Solar applications, that offers superior corrosion resistance than conventional Galvanised or Galvalume coated steel sheets • 1st company in India to produce Zn-Mg-Al Coated Steel;
Slide 25: Contributing to India's High Speed Rail Journey
3 Contributing to India’s High Speed Rail Journey Supplying Steel to Mumbai Ahmedabad Bullet Train Project • Mumbai–Ahmedabad High Speed Rail (MAHSR) Corridor is the first of the twelve lines planned by the government. It will cover more than 500 km in 2 hours and 58 minutes with a maximum speed of
Slide 26: Our Commitments: No harm to People, Environment & Society
4 Our Commitments: No harm to People, Environment & Society Water Security Circularity & Biodiversity Maintaining zero liquid discharge Promoting Circular Economy 39% reduction in specific water consumption to 2.21 m3/tcs by Focus on ‘Zero waste to Landfill’ FY30 ‘No net loss’ of Biodiversity by FY3
Slide 27: Building a Strong Health & Safety Culture
4 Building a Strong Health & Safety Culture Safety Culture Survey Capacity Building JSW Steel’s Vision 000 • Safety Culture Survey of the workforce including Zero contract workmen, conducted at JSW Raigarh Zero Zero major • Camera-fitted Helmets for monitoring high-risk/critical injury harm incident
Slide 28: Social Impact in FY24
4 Social Impact in FY24 More than 575 villages and over 1mn people reached Health & Water, Environment Waste Skill Art, Culture & Education Agriculture Sports Nutrition & Sanitation Management Development Heritage 6,07,000 5,55,000 2,50,000 1,47,000 52,000 19,000 70,000 2 nos. Shalimar Bagh and Indi
Slide 29: Our Commitment to Society
4 Our Commitment to Society Health and Nutrition Water, Environment & Sanitation Sharpening Vision: clearer sight for a better tomorrow • 74,457 people impacted in Maharashtra, Karnataka, Odisha & Tamil Nadu • Rural Eye Health program launched in Mar’24 in Raigad Education 2,50,000 children in 1,400
Slide 30: Our Commitment to Society
4 Our Commitment to Society Art, Culture and Heritage • Hampi Art Labs is a first in a series of new-age constellation sites within the arts ecosystem in India • Will engage the local community and international visitors with contemporary art in all forms. Learning activities and workshops will be d
Slide 31: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.60 6.56 6.38 2.52 2.49 2.50 2.44 2.36 6.04 2.45 2.45 2.41 2.39 5.66 5.68 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Dust Emi
Slide 32: Strong Board and Experienced Management Team
5 Strong Board and Experienced Management Team Chairperson - Emeritus Chairman and MD Savitri Devi Jindal Sajjan Jindal Executive Directors Jayant Acharya Gajraj Singh Rathore Joint Managing Director & Whole-Time Director & CEO COO Independent Directors Seturaman Mahalingam Haigreve Khaitan Nirupama
Slide 33: Proven Track Record of Organic & Inorganic Growth and Partnerships
6 Proven Track Record of Organic & Inorganic Growth and Partnerships Combination of organic and inorganic growth 2002-2005 2006-2009 2010 2011-2012 2013 • Capacity expanded from 1.6 mtpa • Capacity increased to 3.8 mtpa • 3.5 mtpa (HSM-2) • 49.3% stake in Ispat industries • 14.3 mtpa capacity to 2.5
Slide 34: Proven Track Record of Organic & Inorganic Growth and Partnerships
6 Proven Track Record of Organic & Inorganic Growth and Partnerships JV with Severfield UK Plc JSW-JFE partnership Partnership overview • JSW Severfield Structures Limited (JSSL) is a 50:50 JV with Severfield Plc, • 14.99% minority stake bought by JFE in 2010 UK, the largest steel fabricator in UK,
Slide 35: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Total Revenues (₹ 000’s Cr) 12.56 15.80 16.27 16.69 16.06 15.08 18.96 23.62 25.55 176.0 167.0 21.86 23.96 147.9 17.69 14.68 15.55 15.60 14.90 14.95 12.25 85.0 80.4 73.4 73.9 60.7 46.2 FY16 FY17
Slide 36: Prudent Capital Allocation: 10 Year TSR CAGR of 23%, and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 23%, and Uninterrupted Dividends ROCE 29.8% Uninterrupted Dividends (₹/share) 20.0 15.0 19.6% 19.5% 16.4% 10.0 7.3 14.8% 13.1% 5.0 7.6% 6.3% 9.6% 0.0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 37: Debt Profile and Credit Ratings
8 Debt Profile and Credit Ratings Net Gearing (ND/Equity) within Leverage (ND/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.48x 1.34x 3.75x 1.17x 3.20x Bonds and 0.93x 2.40x 2.61x 2.62x debentures, 0.83x 0.89x Foreign INR debt, 43% 40% 1.45x
Slide 38: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: June 2024 38
Slide 39: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimisation Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 40: Project SAMPARK: End-to-End Transformation of Road Movement
Project SAMPARK: End-to-End Transformation of Road Movement The Project at Vijayanagar and Dolvi has 3 Aspects Key Benefits ➢ Reduction in road logistics cost In-bound In-plant Out-bound o Approx. 3.5% reduction in logistics cost from logistics logistics logistics better process efficiencies, increa
Slide 41: Transforming Mining Operations with Digital
Transforming Mining Operations with Digital Digitalized Mine Planning & Operations Optimize End-to-End Logistics • Pit-to-Plant Digital Logistics Management • 3D Mine Planning & Geological Modelling for • RFID-based vehicle authorization; automated mine designs man-less weighbridge operations • Digi
Slide 42: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: June 2024 42
Slide 43: Global Steel
Global Steel Crude Steel Production – Jan-Mar (mt) Finished Steel Demand (mt) China Steel Production and Export (mt) Jan-Mar CY22 Jan-Mar CY23 Jan-Mar CY24 CY23 CY24F (as of Oct 23) CY24F (Apr 24) CY25F (Apr 24) China Crude Steel Production (LHS) 150 12 +1.7% Exports (RHS) +0.5% 10 100 8 1,849 0.0%
Slide 44: Indian Steel – Annual Trend
Indian Steel – Annual Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) FY23 FY24 Finished Semis Finished Semis +13.2% +13.6% YoY 9.65 +2.5% YoY +37.4% 144.04 YoY 1.33 8.34 YoY 8.54 127.20 136.25 119.89 1.62 1.06 7.02 1.00 8.32 7.49 6.72 6.02 Crude Steel Production Apparent
Slide 45: Q4 & FY24 Production & Sales
Q4 & FY24 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q4 FY24 Q4 FY23 YoY Q4 FY24 Q4 FY23 YoY Consolidated India Operations 6.54 6.37 3% 6.48 6.35 2% USA – Ohio Operations 0.25 0.21 19% 0.25 0.18 37% JSW Steel Consolidated Operations 6.79 6.58 3% 6.73 6.53 3%
Slide 46: FY25 Guidance
FY25 Guidance All fig. in million metric tonnes FY25 Crude Steel Particulars Sales Production Consolidated India Operations 27.40 26.00 JSW Steel USA Ohio 1.00 1.00 Total Combined Volumes 28.40 27.00 JSW Steel Corporate Presentation: June 2024 46
Slide 47: JSW Steel Consolidated Capex Update
JSW Steel Consolidated Capex Update Particulars ₹ Cr Capex carried forward (including Creditors and Acceptances) 37,094 New Approvals: Dolvi Phase-III 19,125 Growth, Mining Projects, Italy Rail Mill modernisation 4,665 Sustenance Capex 3,550 Total 64,434 Approx. 95% of capex is for India operations,
Slide 48: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • HSM commissioning, commercial production and sales have commenced in March 2024 • Comissioning of 5mtpa integrated facility expected by July 2024 • Ramp-up expected by end of Q3 FY25 Finishing Mill Stand at HSM Coke Oven Plant • 1.5 mtpa c
Slide 49: Key Project Updates – BPSL & Others
Key Project Updates – BPSL & Others Phase-II Expansion from 3.5 to 5 MTPA • Wire Rod Mill-2, Billet Caster commissioned • Lime Calcination Plant-6 commissioning in Q1 FY25 • Gradual ramp-up expected by end of Q3 FY25 Other Projects WRM-2 commissioning at BPSL • 0.12 MTPA Colour Coating line in Jammu
Slide 50: Value Accretive Project: Dolvi Phase - III
Value Accretive Project: Dolvi Phase - III 5mtpa brownfield expansion at Dolvi Transformation of Dolvi Plant • Increase steel-making capacity by 5mtpa, taking total capacity to 15mtpa Dec 2010 FY16-17 FY22 FY25-Sep’27 o Expansion expected to be completed by Sep’27 Acquisition Expanded Expanded Expan
Slide 51: Case study: Turnaround Strategy at JSW Ispat's Dolvi plant
Case study: Turnaround Strategy at JSW Ispat’s Dolvi plant JSW Steel has a proven track record of identifying, acquiring and integrating assets creating synergies and optimizing costs Completed initiatives – December 2010 FY2016 – 2017 FY2018 – 2022 FY2011 – 2015 • Plant under maintenance • Infusion
Slide 52: Recent Awards & Recognitions
Recent Awards & Recognitions Only steel company globally to JSW Steel recognized as Steel secure A rating in Water Security Included in the Dow Jones JSW Dolvi Works received Sustainability Champion for the World and Emerging Markets “Platinum Award” for Excellence Leadership rating for fourth 6th c
Slide 53: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India High Speed Rail (Mumbai-Ahmedabad Bullet Train) Project Metro Projects: 48 km of Metro project lines 879 Km of Railway Freight Corridors (Mumbai- (Mumbai, Pune, Nagpur, Bengaluru, Haryana WDFC & Ludhiana-West Bengal EDFC) Ahmedabad, Chennai, Ind
Slide 54: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India 2.0 GW Solar Projects Nuclear Power Plants: 747 MW for Kudamkulam, 1.2 GW Wind Projects Tarapur, Kakrapar Power Projects Mumbai Coastal Road Expressways and Highways: 845 Km Roads & 140 Km Bridges across major projects Airports: Navi Mumbai, Jew
Slide 55: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Corporate Presentation: June 2024 55