Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (November 2022)
52 slides from Jsw Steel's investor presentation, November 2022
Slide 1: Corporate Presentation
Corporate Presentation November 2022
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 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 3
Slide 4: Agenda
Agenda Sustainability 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 4
Slide 5: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Ms. Fiona Pa
Slide 6: Climate Change: Emission Target and Initiatives
Climate Change: Emission Target and Initiatives Derivation of carbon emission target for 2030 Planned/ Potential initiatives to reduce CO2 intensity • The Sustainable Development Scenario (SDS) (a) requires direct Energy Transition from thermal to Renewable in steel making emission intensity of crud
Slide 7: Agenda
Agenda Sustainability 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • Capacity of 4.8 GW (Hydro, • Capacity of 130,000 klpa • Ports capacity of 153 mtpa • Capacity of 29.2 mtpa, growing Renewable and Thermal) • Only fully-automated, water- • Operations across East, to 38.5 mtpa • Growing to 20 GW by 2030 base
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 HRC, CRC, Coated, Tinplate, Electr
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 FY02-22: 15% CAGR FY02-22: 25% CAGR FY02-22: 28% 147.9 27.7 25.8 39.0 18.0 18.0 18.0 18.0 85.0 80.4 80.2 73.4 73.9 19.0 20.1 14.8 7.8 11.9 19.5 4.2 6.1 1.6 1.6 0.3 FY02 FY10 FY18 FY19
Slide 11: Navigating Near Term Volatility; Outlook Remains Positive
Navigating Near Term Volatility; Outlook Remains Positive Strong external headwinds Long term outlook remains strong Expect stronger H2 performance impacted H1 FY23 EBITDA for JSW Steel • Sharp decline in steel price after • Nimble marketing function and • Healthy steel demand growth in peaking in A
Slide 12: Agenda
Agenda Sustainability 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 12
Slide 13: Key Investment Highlights
Key Investment Highlights 1 Size, Scale & Growth Leading steel producer in India with near-term growth to take capacity to 37 mtpa 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins further enhanced by significant downstream c
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: 3.5 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa (JISPL) Ohio: 1.5 m
Slide 15: BPSL - Facilities and Capacities Overview
1 BPSL- Facilities and Capacities Overview Chandigarh Kolkata Expansion Plan Cold Rolled Steel Strips and Value added: CRCA, GI/GL Precision Tubes Crude Steel Capacity 5.00 3.50 mtpa Jharsugudha Netrabandha Integrated Steel Plant with Iron Ore Mine: 82mt 3.50 Captive Power Plant Reserves 2.75 Downst
Slide 16: Strong Fundamentals for India Steel Demand
1 Strong Fundamentals for India Steel Demand Significant room for growth in steel India Steel: Strong Fundamentals (mt) consumption in India Recent changes of export and import duties on the sector Crude Steel Crude Steel Finished Steel China, Capacity Production Demand 667 • Govt. of India announce
Slide 17: Near-term Growth to Take India Capacity to 37 mtpa
1 Near-term Growth to Take India Capacity to 37 mtpa Near-term growth in JSW Steel’s India steel capacity (mtpa) 1 2 • 5 mtpa Dolvi expansion commenced integrated operations in FY22 JISPL Vijayanagar Expansion BPSL 37.0 • 5 mtpa brownfield expansion at Vijayanagar 1.5 1.50 – Value-accretive with low
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 Ranking(a) Leading position on global conversion cost curve – Conversion cost of c.$136/tonne in FY22 # 4 ranked in Asia Technology, analytics and innovation continue t
Slide 19: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 13 Captive iron ore mines ensuring adequate raw material Raw material security supply Steel Plants • Won 6 iron ore mines in Karnataka through auctions in 2016 and 2018, and 3 Karnataka – 9 mines Mines mines in FY20. • c.216 MnT of aggregate JV and Associates- Stee
Slide 20: Digital Logistic Management System (DLMS) - Odisha Mines
2 Digital Logistic Management System (DLMS) - Odisha Mines Non-DLMS DLMS Integration with i3MS Parking Management 1 5 Permit details generated in i3MS (Day of despatch activities) and fetched Entry control through RFiD authentication and Boom Barrier/ 2 Integration with SAP traffic lights DO creatio
Slide 21: Strong Margins Enhanced by Downstream Value Added and Special Products
Strong Margins Further Enhanced by Significant Downstream Capacities Producing 3 Value Added and Special Products Coated Products Colour Coated Products Tin Plate Pipes & Tubes, Roofing, Oil Can, Non-oil Can, Appliance, Roofing, Food Cans General Engg., Solar, Sandwich panel Appliance, Colour Coater
Slide 22: 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 & colou
Slide 23: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Tinplate coils and sheets with high strength and formability, used in food and non-food packaging • Al-Zn coated coils and sheets designed for complete requirement of solar structures (purlin, rafter, bracers, etc.) • Galvanised st
Slide 24: JSW Steel: Supporting India's Transition To Green Energy
3 JSW Steel: Supporting India’s Transition To Green Energy Rotor Blades Supplying Steel for Wind Mills • JSW Steel is on the way to become one of the preferred and leading suppliers to the wind sector Nacelle Rotor Hub • JSW currently supplies HR Plates for Tubular Tower which is Gear box being used
Slide 25: JSW Steel: Making Cars Safer for You
3 JSW Steel: Making Cars Safer for You Focus on safer, lighter and fuel efficient cars Door Impact beams B Pillars • Indian automotive industry is evolving to adopt Front Cross Member consumer demand for 5-star rated cars for safety • JSW Steel is working closely with auto makers to make cars safer,
Slide 26: Environment: Targets and Strategy
4 Environment: Targets and Strategy SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65 19% Climate • Increased use of scrap in steel making Change • GHG Emissions 3.39 1
Slide 27: Health & Safety
4 Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury- & occupational illness-free workplace. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety JSW’s Roadmap to Vision 000 Zero Zero Zero major injury harm incidents Hea
Slide 28: Our Communities
4 Our Communities Key intervention areas Health & Agriculture Nutrition Water, Environment & Education Mega health and cancer detection Eye camps to extend Vision Screening Sanitation camp in Odisha and Correction at Vasind & Dolvi Waste Skill management development Art, culture & Sports heritage 51
Slide 29: Sustainability Initiatives & Recognitions
4 Sustainability Initiatives & Recognitions Initiatives - Decarbonisation in Focus United Nations Global Compact JSW Steel becomes a participant of the United • SEED (Sustainable Energy Environment and Nations Global Compact Decarbonisation) program initiated at Vijayanagar • Aimed at building granu
Slide 30: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.75 6.59 6.56 4.13 3.79 6.38 6.24 2.59 2.52 2.60 2.41 2.45 2.43 6.04 2.49 2.50 5.92 2.40 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY18 FY19 FY20 FY21 FY22 H1 FY23
Slide 31: Strong Board and Experienced Management Team
5 Strong Board and Experienced Management Team Chairperson - Emeritus Chairman and MD Savitri Devi Jindal Sajjan Jindal JSW-JFE partnership Partnership overview Executive Directors • 14.99% minority stake bought by JFE in 2010 • Access to cutting edge technologies Seshagiri Rao M.V.S Jayant Acharya
Slide 32: Proven Track Record of Efficient Organic and Inorganic Growth
6 Proven Track Record of Efficient Organic and Inorganic Growth Combination of organic and inorganic growth 2002-2005 2006 2007 2009 2010 2011-2012 • Capacity expanded from • Capacity increased to • Capacity • 3.5 mtpa (HSM-2) • 49.3% stake in • Capacity 1.6 mtpa to 2.5 mtpa 4.8 mtpa increased • JSW
Slide 33: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Operating Revenues (₹ 000’s Cr) 146.4 12.63 12.56 15.80 16.27 16.69 16.06 15.08 20.34 11.19 18.93 14.68 15.55 15.60 14.90 14.95 84.8 79.8 80.2 12.03 12.25 73.2 73.3 9.96 60.5 53.0 46.0 FY15 FY1
Slide 34: Prudent Capital Allocation: TSR CAGR and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 29%, and Uninterrupted Dividends Uninterrupted Dividends ROCE 29.8% 20.0 17.35 19.6% 19.5% 15.0 16.4% 14.8% 10.0 11.9% 9.6% 5.0 6.3% 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY15 FY16 FY16 FY18 FY19 FY20 FY21 FY22 Dividend Poli
Slide 35: Strong Balance Sheet and access to diversified funding sources globally
8 Strong Balance Sheet and access to diversified funding sources globally Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well under the stated cap of 1.75x under the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 1.17x 1.04x 2.60x 2.61x 2.70x Bonds and 2.40x F
Slide 36: Agenda
Agenda Sustainability 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 36
Slide 37: Digitalization: JSW's Approach & Impact Created
Digitalization: JSW’s Approach & Impact Created Wave 4 and Digital Vision-2026* Expand and scale Digital to best-in-class: – Enhance Sales, Marketing, branding, Customer service and eCommerce – Existing plants – Continue digital projects – New plants – ACCIL, JSW-ISPL, JSW- BPSL – Support functions
Slide 38: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas AdditionalFocus Technologies Used Core Systems (SAP, SalesForce, Mining Microsoft Azure, DarwinBox), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA, Intelligent Cameras Safety, Security, Sustainability led Governance R&D Leveraging JSW Digital team, Tech Finance P
Slide 39: JSW Steel's Data Sciences initiatives
JSW Steel’s Data Sciences initiatives (6) Integrated Manufacturing Analytics (1) Process Improvement • Integrated Control Tower (ICT): Persona-based • Raw material blend optimization manufacturing dashboards to provide single- • Defect detection using video analytics view for all plants for the lead
Slide 40: Agenda
Agenda Sustainability 5 Overview 8 Key Investment Highlights 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: November 2022 40
Slide 41: Global Steel
Global Steel Crude Steel Production – Jan-Aug (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Aug CY20 Jan-Aug CY21 Jan-Aug CY22 CY21 CY22F (Apr 22) CY22F (Oct 22) CY23F (Oct 22) China Crude Steel Production (LHS) 150 10 -5.1% -2.3% Exports (RHS) -5.7% -4.3% 8 1,839 -4.0% 100 1,840
Slide 42: Indian Steel: QoQ Trend
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q1 FY23 Q2 FY23 Finished Semis Finished Semis QoQ Trend 0.0% +1.6% 30.02 +25.4% -37.5% 30.03 1.54 2.88 27.50 27.93 1.23 0.15 0.69 1.80 0.06 0.39 1.17 1.39 2.19 1.41 Crude Steel Production Apparent Steel Consumption Q1
Slide 43: FY23 – Key Strategic Priorities & Outlook
FY23 – Key Strategic Priorities & Outlook • Committed to Sustainability targets with focus on 5 key areas: Climate Change, Water Security, Waste, Air Emissions, Biodiversity • Maintain healthy margins despite challenging external environment: • Leverage low conversion cost advantage • Optimise raw m
Slide 44: FY23 Guidance
FY23 Guidance All fig. in million metric tonnes FY23 Crude Steel Particulars Sales Production Consolidated Indian Operations 23.60 22.60 Joint Control Entity: JSW Ispat Special Products Ltd. 0.70 0.70 Indian Operations incl. Joint Control 24.30 23.30 JSW Steel USA Ohio 0.70 0.70 Total Combined Volum
Slide 45: Annual Capex Update
Annual Capex Update Capex guidance for FY23 reduced to ₹ 15,000 cr in July 2022. ₹ 5,000 cr moved to FY24 & FY25 ₹ crore Actual Spent 20,000 19,124 14,198 9,728 FY22 FY23 FY24 FY25 Particulars ₹ Cr Unspent Capex including creditors & acceptance 33,259 Sinter plant and other facilities to support 5mt
Slide 46: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Construction activities for all packages underway • Equipment erection commenced for all packages • Project to be completed by FY24 Coke Oven Plant • 1.5 mtpa Coke Oven battery: Battery A commissioned in September 2022. Battery B expected
Slide 47: Key Project Updates – BPSL
Key Project Updates – BPSL Phase-I expansion to 3.5 MTPA • Major facilities completed viz. Sinter Plant 2, VPSA* Oxygen units and modification of EAF, SMS and Casters • Expected ramp-up by Q4 FY23 2nd Filter Press at BPSL Phase-II expansion to 5 MTPA • Long lead-time items ordered (new Wire Rod Mill
Slide 48: Key Project Updates – Downstream
Key Project Updates – Downstream Vasind and Tarapur: Downstream projects • 0.5mtpa Continuous Annealing Line at Vasind o Commissioned in August 2022 • Second Tinplate line of 0.25 mtpa at Tarapur o Commissioned in September 2022 Other Downstream projects • 0.25 MTPA Colour Coating line at Rajpura, P
Slide 49: 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 50: Awards & Recognitions
Awards & Recognitions • Rated at Leadership Level (A-) by CDP • JSW Steel included in the Dow Jones Sustainability Index for Emerging Markets • WSA Steel Sustainability Champions for 4th consecutive year in 2021 • Corporate Governance & Sustainability Vision Awards 2020 2020 & 2021 • “Steelie Award“
Slide 51: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Solar Project: Contributed 9.1 GW High Speed Rail (Mumbai - Ahmedabad) Wind Project: Contributed 620MW c.90kT supplied Expressways and Highways: Over 1,145km Metro Projects: c.41km of metro project of roads. Over 121km of expressways lines (Mumb
Slide 52: Thank You
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in