Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q4 FY19 Earnings Presentation
36 slides from Jindal Steel's earnings presentation, May 21, 2019
Slide 1: Jindal Steel & Power filing cover letter to exchanges
JInDALY STEEL & POWER May 21, 2019 BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, 5% Floor, C-1, Block G Dalal Street Bandra ~ Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Security Code No. : 532286 Security Code No. : JNDALSTEL SUBJECT: INDUS
Slide 2: Q4 FY'19 Industry Update & Key Performance Highlights
Q4 FY’19 Industry Update & Key Performance Highlights 21st May, 2019
Slide 3: Forward looking statements disclaimer
This presentation may contain certain forward looking statements concerning Steel & power sector , Economy and JSPL’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forwa
Slide 4: Q4 FY'19 Highlights
Q4 FY’19 Highlights INDUSTRY UPDATE COMPANY UPDATE
Slide 5: Highest ever Revenue & EBITDA in FY19
Highest ever Revenue & EBITDA in FY19 (Figures in Rs. Crores) REVENUE (Rs. In Cr) 39,388 Standalone Consolidated 27,844 22,706 20,070 19,626 18,632 27,730 16,902 17,218 17,523 15,114 14,691 15,502 13,518 13,687 12,852 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 JSPL achieved ever highest Revenue
Slide 6: Operational Performance
Operational Performance Highest Ever Production & Sales Consolidated Steel Production Consolidated Steel Sales 1.19 1.16 1.15 1.30 1.27 1.32 1.39 1.72 1.65 1.68 1.68 1.95 1.11 1.08 1.16 1.31 1.15 1.35 1.36 1.66 1.61 1.75 1.65 1.91 2.00 2.00 1.80 1.80 0.45 0.46 1.60 1.60 0.46 0.38 0.46 0.47 0.43 0.48
Slide 7: Q4 FY'19 Industry Update
Q4 FY’19 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 8: Global Steel Production increased amid moderate demand outlook
Global Steel Production increased amid moderate demand outlook > Global Steel Production improved significantly > Global Capacity Utilization improved, but persistent Idle Capacity Fig in Mt 1809 Capacity Fig in Mt 1730 CY 17 CY 18 Utilization Steel Outpur output Idle Capacity 80% 79% 77% 74% 73% 72
Slide 9: Steel Prices and Spread marginally softer in Q4 FY19
Steel Prices and Spread was marginally softer in Q4 FY 19 > Steel Prices decreased in Q4 FY19 (Q-o-Q) (Fig in $/MT) -4% -3% -2% -10% -4% -3% -3% > Steel Prices weakened during Q4 (q-o-q), despite fairly higher consumption in Feb+March 1067 Q3 FY19 Q4 FY19 > Asian Steel Spreads have narrowed during Q
Slide 10: Global Iron Ore Supply Concern: Prices likely to remain stronger in FY20
Global Iron Ore Supply Concern : Prices likely to remain stronger in FY 20 > Iron Ore Prices 62% CFR China ($/MT) 100 Iron Ore : 93 • Seaborne Iron ore prices remain strong due to 87 86 disrupted supply from Brazil and Australia; • Vale ore production loss since accident double of 76 77 76 initial e
Slide 11: Indian Steel Demand likely to remain robust supported by construction growth
Indian Steel Demand likely to remain robust supported by construction growth > Indian Steel Demand likely to remain Robust > Construction Growth > Capital Goods Growth > Automobile Growth ASU ASU % SWIP Weight: 62% SWIP Weight: 15% SWIP Weight: 9% Fig in Mt 6.6% 6.8% 16.2 6.4% 120 10% 8.5% % 8.3% 7.
Slide 12: Indian Steel Industry: FY'19 Major Highlights
Indian Steel Industry : FY ’19 Major Highlights Crude Production Fig in MtT 107 The Crude steel production grew by 3.3% during FY ‘19 (y-o-y) 103 The Primary producers grew by 7.1% (63.6Mt) while Other Producers production 3.3% declined by 1.8% (42.96 MT) At 138 MT, crude steel capacity indica
Slide 13: Raw Material Supply Volatility
Raw Material Supply Volatility Raw Material Supply Volatility: > Domestic IO Price (62% fine Odisha Rs/MT) • Supply volatility in domestic iron ore led to price volatility in 3610 contrast with international IO Prices trend • Future domestic iron ore supplies bit uncertain. 2720 2285 • Likely shorta
Slide 14: Power Business
Power Business Power Requirement vs Availability (in BUs) Sector-wise PLF (%) 1274 90 1300 86 85 1195 85 82 1143 1268 84 81 79 1200 1114 80 1069 1187 76 75 74 73 1100 1135 71 72 73 996 1002 1091 70 67 70 71 1000 937 1031 68 66 65 62 862 960 64 61 900 831 60 59 60 909 56 60 58 55 56 858 55 56 800 54
Slide 15: IEX Clearing Price Trend
IEX Clearing Price Trend RTC Power Exchange Prices – W3 Region (Rs./kWh) 6.30 5.73 5.30 4.69 4.57 4.30 3.97 4.02 FY 15-16 3.68 3.68 3.68 FY 16-17 3.58 3.45 FY 17-18 3.33 3.30 3.33 3.20 3.22 FY 18-19 3.30 3.06 3.19 2.67 3.06 3.05 2.65 2.50 2.36 2.19 2.55 2.20 2.30 2.05 2.35 2.03 2.05 2.06 1.91 1.89 2
Slide 16: Q4 FY'19 Highlights
Q4 FY’19 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 17: Business Segments
Business Segments Steel Power Global Ventures Current Capacities – Domestic & Global 8.6 MTPA Steel* 2.4 MTPA Steel IPP – 3400MW** 3.11 MTPA* Iron ore Coal & Iron Ore CPP – 1634 MW 9 MTPA* Pellet Plant Mines *Domestic **1000 MW Divestment announced
Slide 18: Steel Capacities across Life Cycle
Steel Capacities across Life Cycle Iron Making Liquid Steel Finished Steel (9.95 MTPA) (11.00 MTPA) (7.95 MTPA) DRI 3.12 MTPAin deail WRM 0.60 MTPA Capacity RUBM 0.75 MTPA BF 5.33 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA Plate Mill 2.20 MTPA HBI 1.50 MTPA BRM 3.80 MTPA
Slide 19: Detailed plant wise capacities
Detailed plant wise capacities Raigarh Angul Barbil Patratu Oman JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP BF 2.125 225,000 MTPA HBI 1.5 Nm3/Hr DRI 1.32 MTPA BF 3.2 MTPA MTPA WRM SMS Capacity DRI 1.8in deail 0.60 3.6MTPA MTPA MTPA SMS 2.5 SMS 2.4 Iron Plate Mill Pellet Tamnar 1.00
Slide 20: Manifold Growth in the Last 5 Years
Manifold Growth in the Last 5 Years FY ‘14 FY ‘19 Steel - India 3 MTPA 8.6 MTPA ~2.86x Power 1,000 MW 3400 MW 3.4x Oman 0 MTPA 2.4 MTPA Add Pellet 4.5 MTPA 9 MTPA ~2x All major capex completed – scale of growth is approx. Three Times
Slide 21: Potential for BIG LEAP
…… potential for BIG LEAP FY19 Capacity Production in FY19 Upside Potential Steel – India 8.6 MTPA 5.25 MTPA 64% Capacity Steel – Oman 2.4 MTPA(1) 1.71 MTPA 40% Capacity Independent 3,400 MW 1187 MW 186% Power Capacity Pellet 9.0 MTPA 7.08 MTPA 27% Capacity Upside potential remains to be exploited
Slide 22: JSPL Standalone Key Financials
JSPL Standalone Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q4 FY 2018-19 Q3 FY 2018-19 Q4 FY 2017-18 %QoQ %YoY Turnover 7,402 6,745 5,752 10% 29% EBITDA 1,440 1,480 1,519 -3% -5% EBITDA % 19% 22% 26% Depreciation + Amortization 576 572 468 1% 23% Interest 980 635 686 54% 43%
Slide 23: JSPL - Power Capacities
JSPL - Power Capacities Independent Power Projects (IPP) Capacity Project Fuel Configuration Status (MW) Tamnar 1* 1,000 Coal 4x250 MW Operational Tamnar 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh Tamnar Capacity Angul Project Fuel Configuration Status (MW) DCPP,
Slide 24: Jindal Power Limited
JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I EUP -II EUP -III 1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600)
Slide 25: PPA Arrangements
PPA Arrangements Period Quantum Project Buyer Type From To (MW) Tamnar II Long Term Feb-14 Sep-28 400 (Phase 1) Tamil Nadu Tamnar I Medium Term Sep-17 Aug-19 200 Tamnar II Long Term Jun-16 May-41 200 (Phase 1) KSEB Tamnar II Long Term Oct-17 Sep-42 150 (Phase 1) Tamnar II Long Term After commercial
Slide 26: Key Contractual Arrangements for JPL
Key Contractual Arrangements for JPL Tamnar-I, 1,000 MW (EUP I) Tamnar-II - 1,200 MW (EUP II) Tamnar-II - 1,200 MW (EUP III) Long term linkage from Coal sourced through – market Mahanadi Coal Limited (MCL) Coal sourced through – market FSA purchase and e-auction and South Eastern Coalfields pu
Slide 27: JPL Key Financials
JPL Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q4 FY 2018-19 Q3 FY 2018-19 Q4 FY 2017-18 %QoQ %YoY Turnover 999 990 947 1% 5% EBITDA 267 273 265 -2% 1% EBITDA % 27% 28% 28% Depreciation + Amortization 324 334 377 -3% -14% Interest 236 219 237 8% 0% PBT (Before Exceptional) 44
Slide 28: Summary of International Operations
Summary of International Operations Shadeed, Oman 1.5 MT HBI , 2.4 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant Mozambique, Africa Developing a 3 MTPA coal mine in Mozambique’s coal- rich Moatize region South Africa, Africa Australia JSPL’s Kiepersol Colliery produces Anthraci
Slide 29: Holding structure for global operations
Holding structure for global operations Jindal Steel & Power Ltd Listed Operating Entity in India Jindal Steel & Power (Mauritius) Ltd Holding company for overseas business Oman Australia South Africa Mozambique 2.4 MTPA Steel plant Coking Coal Anthracite Coal Thermal/ Coking Coal
Slide 30: JSPL Consolidated Key Financials
JSPL Consolidated Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q4 FY 2018-19 Q3 FY 2018-19 Q4 FY 2017-18 %QoQ %YoY Turnover 10,159 9,580 8,599 6% 18% EBITDA 1,845 2,077 2,137 -11% -14% EBITDA % 18% 22% 25% Depreciation + Amortization 2,373 1036 960 129% 147% Interest 1,163 1,04
Slide 31: Key Customers & Adding...
PANTHER Key Customers & Adding... JINDAL — © ar NPCIL a ¢£ _ inion oneete aha Reuince SIMMA vadiitet er eae fer fate NTPC es, IndianOil & LANEO GL Group ‘J ~, suSco © @ A Punj Lloyd waray projects QW SIMPLEX Fa Indiabulls ARASTALCTURES 7D aise seaece Indiabulls Power Limited A BANSAL INFRATECH Elism
Slide 32: Angul
ANGUL
Slide 33: Raigarh
jon rug PANTHER JINDAL
Slide 34: Oman
OMAN
Slide 35: Investor relations contacts
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com Mr. Gourav Sancheti– Asst. Manager, Investor Relations Tel : +91 0124-6612317 Mobile:+91 9038240683 Email: - gourav.sancheti@jin
Slide 36: Thank You
Jeena THANK YOU JINDALY