Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (August 2020)
39 slides from Jindal Stainless's investor presentation, Aug 6, 2020
Slide 1: Cover letter to stock exchanges - Investor presentation
JINDAL August 06, 2020 BSE Limited National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, 5111 Floor, Rotunda Building, P J Towers, Plot no. C/1, G Block Dahil Street, Fort, Mumbai- 400 001 Bandra-Kurla Complex, Bandra(E), # 022-2272 3121, 2037, 2041, Mumbai-400051 3719,2
Slide 2: Corporate Presentation - Jindal Stainless Limited
Corporate Presentation JINDAL STAINLESS LIMITED
Slide 3: Disclaimer
Disclaimer 2 This presentation and the accompanying slides (the “Presentation”), which has been prepared by Jindal Stainless Limited (the "Company"), has been prepared purely for information purposes only and is not, and is not intended to be, an offer, or solicitation of offer, or invitation or rec
Slide 4: Content
Content 3 1 Company Overview 2 Stainless steel Sector Dynamics 3 Key Business Highlights 4 Financials 5 Conclusion 6 Annexure
Slide 5: Company Overview
Company 4 Overview
Slide 6: Snapshot
Snapshot 5 Jindal Stainless – Pioneers of the stainless steel industry in India #1 ~4 >25% 40+ Stainless steel player Decades of Group Domestic Market Exports to countries in India Excellence Share ~800 1.1Mn Tonnes ~Rs. 123bn ~Rs. 12bn Acre Total Land Area Per Annum stainless steel FY20 Revenues (N
Slide 7: Company Overview
Company Overview 6 Largest integrated stainless steel Company in India with Product Basket manufacturing facilities located at Jajpur, Odisha Robust logistics infrastructure, including in-house railway sidings, with close proximity to ports provide strong support to overall operations – „State-of-th
Slide 8: Stainless steel Sector Dynamics
Stainless steel 7 Sector Dynamics
Slide 9: Stainless 'Value-Added' Steel
Stainless ‘Value-Added’ Steel 8 Low Maintenance Weldability Recyclability Aesthetics Durability Stainless steel Formability Low Life Cycle Cost Corrosion Resistance Stainless steel - The “Green wonder Metal”
Slide 10: Favourable sector dynamics
Favourable sector dynamics… 9 Healthy growth in global stainless steel demand… …with stainless steel as the fastest growing metal Stainless Steel 5.3% 50.7 52.2 45.8 48.1 Aluminium 3.7% 1980 - 2019 CAGR 41.7 41.5 38.5 Copper 2.6% (mt) Carbon Steel 2.5% Zinc 2.1% 2013 2014 2015 2016 2017 2018 2019 Le
Slide 11: Consumption Pattern diversifying across categories
Consumption Pattern diversifying across categories 10 1998 2015 2023E 6% 2% 1% 3% 2% 20% 7% 7% 12% 11% 38% 57% 13% 17% 80% 25% Over the past 2 decades, stainless steel consumption in India has diversified to new value-added categories of ABC, ART and Process industries from the most primary usage in
Slide 12: Stainless steel Product Applications
Stainless steel 11 Product Applications 360o Product Applications Jindal Stainless caters to a wide range of products…
Slide 13: Architecture Building Construction
12 Architecture Building Construction (ABC) Decorative and color coated stainless steel Decorative Panels Street furniture Home furniture Escalators, elevators Sculptures & designer items Claddings Commercial Complexes Railings Stainless steel roofing sheets Gates Railway station upgradation
Slide 14: Automobile Railway Transport (ART)
13 Automobile Railway Transport (ART) Bus bodies Exhaust systems, auto chassis, trims, suspension parts, fuel tanks, catalytic convertors Railway wagons and coaches Metro coaches
Slide 15: Process & Engineering
14 Process & Engineering Nuclear grade stainless steel for fuel containment and waste handling Super critical boilers in power plants Water treatment and drinking water supply Desalination applications Chemicals, petro-chemical & fertilizer plants
Slide 16: Consumer Durables
15 Consumer Durables Washing Machine Microwave Refrigerator Utensils Components thereof
Slide 17: Stainless Steel Growth Drivers
Stainless Steel Growth Drivers 16 Macro factors driving domestic stainless steel usage Increasing shift towards manufacturing of stainless steel Railway wagons and coaches New trends in Auto sector like stainless steel fuel tanks, BS-VI compliant exhaust systems, Automobile Railway stainless steel b
Slide 18: New Age Applications
New Age Applications 17 Stainless steel body coaches and Stainless steel Foot-over-bridges Increased Stainless steel usage in wagons modernization of Railway Infrastructure Stainless steel emerging as a perfect metal Stainless steel Overhead Water Tanks Stainless steel body E-rickshaws for BS-VI com
Slide 19: Key Business Highlights
caw / 2 Seas A — % ey. Business ighlights
Slide 20: Integrated operations with huge opportunity to drive operating leverage
Integrated operations with huge opportunity to drive operating Leverage 19 ~800 ACRE 250,000TPA 100,000TPA 264 MW 450,000TPA Total Land Area Ferro-Alloys Mill Plate Captive Power Plant Cold Rolled Annealing Annealing & Pickling (scalable upto 500MW Pickling line High quality infrastructure and facil
Slide 21: Structural initiatives – leading to sustainable turnaround
Structural initiatives – leading to sustainable turnaround 20 Diversification and Innovation-led Lowered logistics cost reliable sourcing of operational efficiency Raw Materials Railway sidings within the plant led Expanded resources of Chrome Increased usage of liquid Ferro to multifold benefits or
Slide 22: JSL – Domestic Footprint
JSL – Domestic Footprint 21 Gurugram Delhi Corporate Office Odisha Jajpur Ahmedabad Kolkata Vadodara Jajpur Bhubaneswar Mumbai Pune Hyderabad Bangaluru Strategically located Chennai manufacturing facility in Jajpur, Odisha JSL and Associate Sales Offices – Close proximity to ports JSL and Associate
Slide 23: JSL – Global Footprint
JSL – Global Footprint 22 United Kingdom Russia Belgium x Italy Spain USA South Korea Vietnam Taiwan UAE Singapore Indonesia Brazil JSL and Associate Sales Offices JSL and Associate Service Center Manufacturing Facility
Slide 24: Key Growth Drivers
Key Growth Drivers 23 Structural growth of stainless steel demand in India • One of the fastest growing value-added metal • Various Government initiatives to further drive stainless steel demand Wide range of product applications and new segment penetration • Increasing premiumization trend and dema
Slide 25: Financial and Operational overview
Financial and Operational 24 overview
Slide 26: Turnaround in Performance
Turnaround in Performance 25 Stainless steel Sales Volume (MT) Net Revenue (Rs. mn) 1,25,850 1,23,201 1,07,846 Thousands 83,113 852 916 779 641 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) 3,183 9.0% 9.5% 13.0% 12.0% 1,390 1,529 11,067 12,809 11,359 11,748 583 FY1
Slide 27: Significantly strengthened Balance Sheet profile
Significantly strengthened Balance Sheet profile 26 Net Debt (Rs. mn) Net Debt/Equity Ratio Net Debt/EBITDA 55,861 46,922 5.0 41,040 36,104 3.7 3.6 3.1 3.2 2.0 1.7 1.4 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 ROE (%) ROCE (%) 15.5% 15.6% 10.3% 12.0% 11.6% 5.8% 6.0% 3.5% FY17 FY18 FY19 FY20 FY17 FY18
Slide 28: Comfortable Debt Position
Comfortable Debt Position 27 Borrowings (Standalone) As on As on As on (Rs. million) Mar.2020 Mar.2019 Mar.2018 Long term debt Net Debt/EBITDA 23,572 20,500 24,568 Inter corporate loan from related party 9,000 9,000 9,000 3.7 OCRPS* - 6,950 6,065 3.6 Total Long term debt 32,572 36,450 39,633 3.1 Sho
Slide 29: Key Milestones achieved
Key Milestones achieved 28 Redemption of Optionally Successfully exits Convertible Corporate Debt Redeemable Restructuring Preference (CDR) Shares (OCRPS) including recompense • Obtained all requisite • The Company fully approvals from authorities redeemed the outstanding and successfully exited the
Slide 30: Conclusion
Conclusion 29
Slide 31: Leadership Play
Leadership Play 30 Leadership position in the fast growing Integrated operations with state-of-art Value-Added stainless steel sector – facilities clear proxy to the sector Huge operating leverage - Fast deleveraging to low incremental capex to significantly strengthen drive future growth balance sh
Slide 32: Focus on expanding Brand and Market presence
Focus on expanding Brand and Market presence 31 Investing in various Branding & marketing initiatives to enhance overall market potential by: – Creating awareness of hygiene and health benefits of stainless steel – Increase usage of stainless steel in Home and Public Spaces Home Smart Home Campaign
Slide 33: Annexure
Annexure 32
Slide 34: Jindal Stainless Ltd – subsidiaries
Jindal Stainless Ltd 33 65.00% JSL 99.99% Iberjindal S.L. P. T. Jindal Stainless Indonesia • Stainless steel Service Center • Manufacturing Unit – 150,000 MTPA CR • Offers customized to the doorsteps of capacity customers in Spain • Key producer of stainless steel in South East Asian market Global O
Slide 35: Asset Monetization Plan (AMP)
Asset Monetization Plan (AMP) 34 Jindal Stainless Ltd Jindal Jindal Jindal United Jindal Coke Stainless Stainless Ltd 26% Steel Ltd 26% Ltd Hisar Ltd (JSL) (JUSL) (JCL) (JSHL) Listed Unlisted Entities Entities • Integrated SS Facility – • Steel Melting – 11,00,000 MTPA • Hot strip Mill – • Coke Oven
Slide 36: Pledging of Promoters' shares
Pledging of Promoters’ shares 35 There is no loan raised against the promoters‟ shares (LAS), and therefore there is no linkage between the pledged shares and their market value Accordingly, there is no requirement of maintaining any margins, since the aforesaid shares are offered only as an additio
Slide 37: Shareholding Pattern
Shareholding Pattern 36 Floating Stock (%) Retail & Others FII 11.4% Promoters Other 12.6% 68.1% 31.9% DII 7.9% Note – Data as on 31st March 2020
Slide 38: Contact Us
Contact Us 37 About Us: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless Goutam Chakraborty / Shreya Sharma steel manufacturer. The Company operates an integrated stainless steel plant at Jajpur, Odisha. The complex
Slide 39: Thank You
Thank You 38
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