Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Investor Presentation (January 2020)
62 slides from Jindal Steel's investor presentation, Jan 21, 2020
Slide 1: Exchange filing cover letter
)INDJly STEEL& POWER January 21, 2020 BSE Limited The National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, su1 Floor, 1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (E), Dalal Sb:eet, Fort, Mumbai -
Slide 2: Jindal Steel and Power Ltd Investor Presentation 3Q FY20
Jindal Steel and Power Ltd Investor Presentation 3Q FY20 (January’ 20) 1
Slide 3: Table of Contents
TABLE OF CONTENTS S No. Content Slides 1 The Company 3-10 2 Overview & Business Segments 11-20 3 Power Business 21-26 4 Global Ventures 27-36 5 Financial & Operational Highlights 37-43 6 Facilities at a glance 44-51 7 CSR Initiatives 52-57 8 Rewards & Recognitions 58 9 Contact Us 59 2
Slide 4: Jindal Steel & Power Limited - Building the Nation of Our Dreams
JINDAL STEEL & POWER LIMITED BUILDING THE NATION OF OUR DREAMS Aerial View of Raigarh Plant 3
Slide 5: Ownership Structure - O P Jindal Group
OWNERSHIP STRUCTURE - O P JINDAL GROUP O P Jindal Group Jindal Saw JSL/JSL Hisar JSW Steel/JSW Energy Jindal Steel & Power (JSPL) Mr. P.R. Jindal Mr. Ratan Jindal Mr. Sajjan Jindal Mr. Naveen Jindal 4
Slide 6: JSPL - Formidable Steel & Power Player
JSPL - FORMIDABLE STEEL & POWER PLAYER Capex cycle completed – on path to achieve multifold earnings growth Projects at strategic locations – in proximity to raw materials, end markets and evacuation infrastructure A comprehensive diversified long products portfolio with several unique high va
Slide 7: Key Milestones During Our Journey
KEY MILESTONES DURING OUR JOURNEY • Commissioning of 2 • Resumption of • Commissioned India’s largest and most modern 4554 cu.m. coke oven batteries CGP – DRI Blast Furnace at Angul. operations 2020 • Completed 3 MTPA Basic Oxygen Furnace at Angul. All facilities wrt 5 MTPA Steel Capacity at JSPL An
Slide 8: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS Naveen Jindal Shallu Jindal Chairman Non Executive Director • Experience: 21 years • Qualification: MBA (University of Texas) R.V. Shahi Arun Kumar Purwar Sudershan Kumar Garg Hardip Singh Wirk Independent Director Independent Director Independent Director Independent
Slide 9: Best in Class Management
…& BEST IN CLASS MANAGEMENT V.R Sharma Managing Director Sudhanshu Saraf • Experience: >38 years. CEO – JSPL • Experience: >30 years Deepak Sogani Bharat Rohra CFO-JSPL MD & CEO - JPL • Experience: >30 years • Experience: >30 years Rajeev Jain CFO - JPL • Experience: >23 years 8
Slide 10: Moving Towards Plural Leadership
MOVING TOWARDS PLURAL LEADERSHIP Strategic Governance Structure Operational Governance Structure ManCo UniCo Business Segments For each For each Business Location Core Group Management Executive Team Committee Steel & Cement Senior Management Committee Power Global Ventures Implementation of Strateg
Slide 11: Shareholding of JSPL from Dec'16
SHAREHOLDING OF JSPL FROM DEC’16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 Promoters 61.89% 61.89% 61.89% 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% 60.52% 60.40% 60.40% Institutional Investors* 19.39% 19.5
Slide 12: 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 11
Slide 13: Integrated Operations with Multiple Point of Sale
INTEGRATED OPERATIONS WITH MULTIPLE POINT OF SALE Raw materials Intermediate inputs Processing End-products Coal from mines Coal washery Washery rejects Char/Flu gases Rotary kilns Power plant Electricity Wire Rod & Wire Rod & Pelletisation Sponge Bar Mill Rebar Pellets plant iron Plates & Iron ore
Slide 14: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE Iron Making Liquid Steel Finished Steel (10.25 MTPA) (11.00 MTPA) (7.95 MTPA) WRM 0.60 MTPA Capacity DRI 4.92 MTPAin deail RUBM 0.75 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA BF 5.33 MTPA Plate Mill 2.20 MTPA BRM 3.80 MTPA 13
Slide 15: Detailed Plant Wise Capacities
DETAILED PLANT WISE CAPACITIES Raigarh Angul Barbil Patratu (Odisha) Oman JPL Mining (Chhattisgarh) (Odisha) (Jharkhand) BF 2.125 CGP 225,000 MTPA Nm3/Hr DRI 1.8 DRI 1.32 MTPA BF 3.2 MTPA MTPA WRM SMS Capacity in deail DRI 1.8 MTPA 0.60 3.6MTPA MTPA Plate Mill SMS 2.5 MTPA Pellet SMS 2.4 Tamnar Iron
Slide 16: 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 15
Slide 17: 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 1.71 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 16
Slide 18: JSPL Product Range
D rracven —_ oo a Rail Parallel Flange Beams & Columns Channel Track Rail: IRS 52, UIC 6O(EIKE2), VIC S4E Sections: U8, UC, NPB, WPB, IPE and HE series. Sizes: 75mm to 400mm Crane Rails: CR 80, CR 100 Size range: 180m to 900mm AAAAASAAAAAADND ADD ALARA ADD DDD DD DA RSL ALO LIAL LLL IAA “sa 8 8 AAAA
Slide 19: JSPL Product Range
Plates Width: 1500mm to 4900mm Thickness: 5mm to 150mm — —_—__ Fabricated Structures Cut & Bend Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use TMT Rebars Star Coulums Sections: Depth: 350mm - 3000mm, Flange Width 250mm - 1000mm, Length: 3 to 18 meters Coils Width:
Slide 20: Special Grade Plates - Angul
SPECIAL GRADE PLATES – ANGUL Developed steel grades for various critical applications like boilers, ship building, petroleum pipes, high strength grades for automotive and earth movers, structural steel for oil exploration platforms, grades for making warships , ballistic launch applications and b
Slide 21: Extensive Sales and Distribution Network
EXTENSIVE SALES AND DISTRIBUTION NETWORK Plants Distributors Stockyards Pan India presence with multiple customer touch points 20
Slide 22: Jindal Panther
oS PANTHER JINDAL
Slide 23: Power Capacities at a Glance
POWER CAPACITIES AT A GLANCE Independent Power Projects (IPP) Capacity Configuratio Project Fuel Status (MW) n 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) D
Slide 24: IPP - Jindal Power Limited
IPP - 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) 23
Slide 25: 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 – Coal sourced through – Mahanadi Coal Limited (MCL) FSA market purchase and e- market purchase and e- and South Eastern Coal
Slide 26: PPA Arrangements
PPA ARRANGEMENTS Period Quantum Project Buyer Type From To (MW) Tamnar II Tamil Nadu Long Term Feb-14 Sep-28 400 (Phase 1) 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 60 (Phase 1) After commercial operation Chhattisgarh of
Slide 27: JPL Financials
JPL FINANCIALS Net Sales Generation Cash Profit Particulars (Rs. Cr.) (MU) (Rs. Cr.) Year 2018-19 3858 10396 816 Year 2017-18 4,059 10,905 778 Year 2016-17 3,119 9,176 656 Year 2015-16 2,997 9,542 706 Year 2014-15 3,228 10636 523 Year 2013-14 2,457 8282 1,386 Year 2012-13 2,510 7973 1,420 26
Slide 28: Global Ventures
Corporate Office, Jindal Africa 27
Slide 29: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS Shadeed, Oman 1.8 MT DRI, 2.4 MT SMS Plant & 1.4 MT Rebar Mill – an Integrated Steel Plant Mozambique, Africa Developing 5MTPA coal mine in Mozambique’s coal-rich Moatize region South Africa, Africa Australia 60.38% stake in Wollongong JSPL’s Kiepersol Col
Slide 30: 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 29
Slide 31: Jindal Shadeed Iron & Steel, Oman
JINDAL SHADEED IRON & STEEL, OMAN Marching towards becoming a Fully Integrated Steel Plant 1.8 DRI 2.4 MTPA SMS 1.4 MTPA Rolling Mill 30
Slide 32: Oman - Salient Features
OMAN - SALIENT FEATURES First & Largest Integrated steel plant of Oman Second largest in Arabian Peninsula Port based steel plant Largest Arc furnace in Arabian Peninsula, with contracted natural gas One of the World’s Best Performing Midrex plant Products : TMT Rebars, HBI, Blooms & Bil
Slide 33: Kiepersol Colliery, South Africa
KIEPERSOL COLLIERY, SOUTH AFRICA An Underground Anthracite and Lean Bituminous Coal mine Location: Piet Retief in Mpumalanga province, South Africa Resources : Up to 40 MT Reserves: 22 MT Products : Anthracite coal Mining Capacity : Can be expanded to 1.2 MTPA capacity annually 32
Slide 34: Chirodzi Mine - Mozambique, Africa
CHIRODZI MINE - MOZAMBIQUE, AFRICA Open Cut Coking & Thermal Coal Mine Location: Chirodzi, Mozambique (105 kms from Tete) Resources : 2,000 MT Reserves: 750 MT Products : Semi Hard coking coal , High Grade Thermal Coal Mining Capacity : 5 MTPA 33
Slide 35: Wollongong Coal Ltd., Australia
WOLLONGONG COAL LTD., AUSTRALIA Two Mines with Unique unmatched location & strategic advantages Location: Russell Vale & Wongawilli Reserves : 125 MT Products : High Quality Coking Coal Logistics : Port Kembla - Less than 20 kms 34
Slide 36: Other Iron Ore Assets
OTHER IRON ORE ASSETS Namibia Melmoth (South Africa) Cameroon Resources 986 million tonnes 1,155 million tonnes 1,301 million tonnes Iron ore 70.9% 68.4% 69.2% content Yield 27.0% 25.2% 31.5% JSPML stake 85% 74% 90% Development Scoping and exploration Pre feasibility stud
Slide 37: JSPL Consolidated Financials
JSPL CONSOLIDATED FINANCIALS Net Sales EBITDA EBITDA Interest Particulars (Rs. Cr.) (Rs. Cr.) % (Rs. Cr.) Year 2018-19 39,372 8,406 21% 4,264 Year 2017-18 27,841 6,469 23% 3,866 Year 2016-17 22,696 4,709 21% 3,441 Year 2015-16 20,368 3,437 17% 3,254 Year 2014-15 19,359 5,440 28% 2,606 Year 2013-14 1
Slide 38: Financial & Operational
FINANCIAL & OPERATIONAL
Slide 39: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 8,939 9,300 Turnover 9,300 9,566 1,642 1,820 EBITDA 1,820 2,077 18% 20% EBITDA % 20% 22% 1,039 1,018 Depreciation + Amortization 1,018 1036 1,030 1,002 Interest 1,002 1042 (427) (201) PBT (201) 14 (399) (2
Slide 40: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 6,573 6,640 Turnover 6,640 6,731 1,255 1,352 EBITDA 1,352 1,480 19% 20% EBITDA % 20% 22% 582 570 Depreciation + Amortization 570 572 657 634 Interest 634 635 16 148 PBT 148 287 15 97 PAT 97 177 9 months 9 mo
Slide 41: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q2 FY 20 Q3 FY 20 PARAMETER Q3 FY 20 Q3 FY 19 947 784 Turnover 784 1,004 299 257 EBITDA 257 273 32% 33% EBITDA % 33% 27% 292 292 Depreciation + Amortization 292 334 214 219 Interest 219 219 (64) (111) PBT (111) (203) (35) (83) PAT (83) (160) 228 181 Cash Profit 181
Slide 42: Highest Ever Revenue & EBITDA in FY19
HIGHEST EVER REVENUE & EBITDA IN FY19 (Figures in Rs. Crores) REVENUE (Rs. In Cr) Standalone Consolidated 39,388 27,844 22,706 18,350 19,943 20,070 19,626 18,632 27,730 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 43: Operational Performance
OPERATIONAL PERFORMANCE Consolidated Steel Production Consolidated Steel Sales 1.19 1.16 1.15 1.30 1.27 1.32 1.39 1.72 1.651.68 1.68 1.95 1.85 1.84 2.03 1.11 1.08 1.16 1.31 1.15 1.35 1.36 1.66 1.61 1.75 1.65 1.91 1.84 1.70 2.18 0.45 0.46 0.39 0.41 0.57 0.41 0.47 0.46 0.38 0.46 0.5 0.36 0.43 0.48 0.4
Slide 44: JSPL Consolidated Debt Bridge QoQ
JSPL CONSOLIDATED DEBT BRIDGE QoQ DEBT BRIDGE 3QFY20 (Rs. In Cr.) 45000 1150 116 10 30000 36501 35457 15000 0 Net Debt as on 30th Sept'19 Debt reduction Fx Impact(Addition due to Movement in Cash & Cash Net Debt as on 31st Dec'19 FX ) Equivalents 43
Slide 45: Jindal
JINDAL? 44
Slide 46: Global Presence in Attractive Markets
GLOBAL PRESENCE IN ATTRACTIVE MARKETS Raigarh Jeraldaburu Oman Patratu Cameroon Tamnar Barbil Angul Tensa Botswana Mozambique Bailadila Australia South Africa Coal mine Iron ore mine CPP Steel plant IPP Presence in resource rich regions well connected with evacuation infrastructure 45
Slide 47: India
INDIA
Slide 48: Chhattisgarh
CHHATTISGARH Integrated Steel Plant,Raigarh Steel Fabrication Plant, Punjipatra Heavy Machinery Division, Raipur Tamnar,3400 MW Power plant 47
Slide 49: Odisha
ODISHA Integrated Steel Plant , Angul Pellet Plant, Barbil 48
Slide 50: Jharkhand
JHARKHAND WRM & BRM, Patratu 49
Slide 51: Oman
Oman
Slide 52: Jindal Shadeed, Oman
JINDAL SHADEED, OMAN 51
Slide 53: Making Sustainability a Focus Priority
MAKING SUSTAINABILITY A FOCUS PRIORITY 52
Slide 54: Pillars of CSR
PILLARS OF CSR HEALTH & NUTRITION ENVIRONMENT & AGRICULTURE DRINKING WATER & SANITATION SPORTS EDUCATION ART & CULTURE SKILL EDUCATION RURAL INFRASTRUCTURE SUSTAINABLE LIVELIHOOD & SOCIAL INCLUSION WOMEN EMPOWERMENT 53
Slide 55: Sustainable CSR
SUSTAINABLE CSR SUSTAINABLE DRINKING WATER & LIVELIHOOD & HEALTH & NUTRITION EDUCATION SKILL BUILDING SANITATION WOMEN EMPOWERMENT 2.7 Lakh+ 22 Lakh+ 78000+ 1 Lakh + 10000+ People provided Adolescent girls and People provided with Students empowered with vocational women benefitted from safe and cle
Slide 56: Sustainable CSR
SUSTAINABLE CSR ENVIRONMENT & COMMUNITY SPORTS ART & CULTURE SOCIAL INCLUSION AGRICULTURE INFRASTRUCTURE 30 Lakh+ 11000+ 1500+ 12 Lakh+ 150+ Performing artists Sports talents trained and traditional People provided/ Saplings Planted/ 10 Parentless children and developed for artisans benefitted with
Slide 57: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS 56
Slide 58: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES TOOL BOX MEETINGS SAFETY AWARDS/REWARDS MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS 57
Slide 59: Recent Awards & Recognitions
RECENT AWARDS & RECOGNITIONS • Prestigious Award for Achievement in Supply of Railway Tracks, Rail Analysis Award 2019 • JSPL was awarded “FICCI CSR Award “ for Women Empowerment 2018 • JSPL was awarded “Platinum Award “ for Health & Safety Excellence at the Apex India Excellence Award 2018-19 • JSP
Slide 60: Investor Relations contact
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 : +91 124-6612317 Mobile:+91 9038240683 Email: - gourav.sacheti@jind
Slide 61: Disclaimer
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
Slide 62: Thank You
THANK YOU 61
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