Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q2 FY2023 Earnings Presentation
26 slides from Jindal Steel's earnings presentation, Nov 10, 2022
Slide 1: Regulation 30 intimation letter to stock exchanges
November 10, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 c
Slide 2: Q2FY'23 Key Performance Highlights
Q2FY’23 Key Performance Highlights 10th Nov,2022
Slide 3: Disclaimer
DISCLAIMER This presentation may contain certain forward looking statements concerning Steel 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 fo
Slide 4: Table of Content
Table of Content Page No Industry Update 4 Results Highlights 8 Company Details 14 Way Forward 19
Slide 5: Industry Update
Industry Update
Slide 6: Near term challenges but fundamentals remain strong in the long term
NEAR TERM CHALLENGES BUT FUNDAMENTALS REMAIN STRONG IN THE LONG TERM 1. Chinese exports peaked in May with 7.8 MT and fell by 12% QoQ in Q2F23 due to increase in apparent domestic Despite near term consumption challenges, see 2. China Crude steel production has declined 3.5% in the first nine months
Slide 7: Indian steel demand is forecasted to be robust in CY22-23
INDIAN STEEL DEMAND IS FORECASTED TO BE ROBUST IN CY22-23 India‘s GDP Growth is projected to post robust Indian Steel Consumption was up 15% Y-o-Y during growth of 7% in FY23 Q2FY23 • At 8.7%, India’s GDP growth in FY 22 was the fastest in last 20 years (Fig in Mill MT) Steel Production Steel Consum
Slide 8: Key pricing trends
KEY PRICING TRENDS Differential in Rebar & HRC was below average during the HRC & Rebar Prices quarter HRC and Rebar prices (INR/t) 18,000 Domestic HRC less Rebar prices (INR/t) 85,000 80,000 16,000 75,000 14,000 12,000 70,000 10,000 65,000 56,356 8,000 60,000 6,000 55,000 4,000 50,000 55,983 2,000
Slide 9: Result Highlights
Result Highlights
Slide 10: JSPL Standalone Key Financials
JSPL STANDALONE KEY (INR Crores) FINANCIALS Q1 FY 23 Q2 FY 23 PARAMETERS Q2 FY 23 Q2 FY 22 14,541 15,118 Gross Revenue* 15,118 14,550 12,849 13,107 Net Revenue 13,107 13,261 2,824 1,426 Adjusted EBITDA** 1,426 4,512 540 544 Depreciation + Amortization 544 562 258 320 Finance Cost(net) 320 350 2,534
Slide 11: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY (INR Crores) FINANCIALS Q1 FY 23 Q2 FY 23 PARAMETER Q2 FY 23 Q2 FY 22 14,738 15,534 Gross Revenue* 15,534 14,902 13,045 13,521 Net Revenue 13,521 13,612 2,952 1,519 Adjusted EBITDA** 1,519 4,587 596 614 Depreciation + Amortization 614 610 364 365 Finance Cost(net) 365 482 2,503
Slide 12: Operational Performance: Steel Production & Sales
OPERATIONAL PERFORMANCE Steel Production & Sales* 2.13 2.11 2.07 2.08 2.01 2.01 1.99 1.96 1.93 1.93 1.93 1.91 1.87 1.84 1.82 1.81 1.74 1.67 1.67 1.61 1.61 1.57 1.57 1.58 1.54 1.56 1.52 1.51 1.48 1.40 1.34 1.36 1.33 1.32 1.30 1.27 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
Slide 13: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS MOZAMBIQUE 5 MTPA ROM coal mine in Mozambique’s coal-rich Moatize region Q2FY23 • Coking Coal Sales Vol. 195 kt • EBITDA ~US$ 15 Mn SOUTH AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthracite coal, sold domestically and WCL comprises of two coking
Slide 14: JSPL Consolidated Net Debt Bridge – 2QFY23
JSPL CONSOLIDATED NET DEBT BRIDGE – 2QFY231 (INR Crs) 2 1,993 2,668 7,727 7,054 Net Debt as on 30th Jun'22 Increase in Debt (net) Fx Impact Movement in Cash & Cash Net Debt as on 30th Sept '22 Equivalents Note – Refinancing Proceeds of Rs.2,779 Cr. is part of closing cash & cash equivalents Note: (1
Slide 15: Company Details
Company Details
Slide 16: Business Segments
BUSINESS SEGMENTS STEEL MINES & MINERALS India: Thermal Coal* Global: Iron Ore Gare IV/6 Coking Coal Anthracite 9.6 MTPA Steel Kasia, Odisha Utkal – B1& B2 Mozambique South Africa 9 MTPA Pellet Plant Tensa, Odisha Utkal C Australia *CMDPA for all three Coal Mines was signed on August 17, 2022 15
Slide 17: India Capacities
INDIA CAPACITIES IRON MAKING LIQUID STEEL FINISHED STEEL (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) WRM 0.60 MTPA(Wire Rod Mill) DRI 3.12 MTPA Rail Mill 0.75 MTPA (Direct Reduced Iron) SMS 9.60 MTPA Capacity in deail (Steel Melting Shop) BSM 0.70 MTPA (Beam & Structure Mill) BF 7.30 MTPA Plate Mill 2.20 M
Slide 18: Key Customers & Adding...
KEY CUSTOMERS & ADDING... roar) = ReuAnce SMMA wears AE parrudte nN ca tee Rusrer Resa ats Nee! = os Indian LANCO g GL Group ~ @ “wD fan (4) - — = : varayprojects GD Puriuoya 7) SIMPLEX Indiabulls ie ee AMET = LODHA Giisminte Se ME ser by Prgereoa) Quensomo vedanta FT + CC geen Sayree essa’ ©. 4G A
Slide 19: Consolidated Structure
CONSOLIDATED STRUCTURE Jindal Steel & Power (JSP) Listed Operating Entity in India 100.0% Jindal Steel O d i s h a ( J S O L ) Angul Expansion 100.0% Jindal Steel & Power (Mauritius) (JSPML) Holding company for overseas business 100.0% 73.9% 97.5% Australia South Africa Mozambique Coking Coal Anthra
Slide 20: Way Forward
Way Forward
Slide 21: JSP: Strategic Growth Framework
JSP : STRATEGIC GROWTH FRAMEWORK HIGH RETURN STRONG ON CAPITAL BALANCE EMPLOYED SHEET Strong FCF Maintaining a Generation & faster conservative Net payback Debt/EBITDA through the cycle STEEL FOCUS SUSTAINABLE Incremental Capex GROWTH to be spent on core MAKE IN Steel Business Sustainability of oper
Slide 22: Phase II: Expansion Plans to Boost Volumes & Earnings
PHASE II: EXPANSION PLANS TO BOOST VOLUMES & EARNINGS CRUDE STEEL CRUDE CAPACITY STEEL CAPACITY TO INCREASE (MTPA) BY 66% BY FY25 CAPEX SPEND Raigarh Angul Phase I Angul Phase II Angul Phase II (3 15.9 MTPA EAF) Angul Phase II 12.9 (3.3 MTPA BOF) 6.3 Margin 3.3 Expansion 9.6 8.6 37% INR 18,000 Cr.1
Slide 23: Angul Phase-II: Timeline
ANGUL PHASE-II : TIMELINE Expected FY22 FY23 FY24 FY25 COD Angul Pellet Plant #1: 6MTPA 4QFY23 Margin HSM Phase #1: 3MTPA 1QFY24 Expansion : Angul Pellet Plant #2: 6MTPA 2QFY24 INR 6,600 Cr.1 Slurry Pipeline 2QFY24 Oxygen plant, Coke oven , RMHS 2QFY24 HSM Phase #2 Expand to 5.5 MTPA 2QFY24 Blast Fu
Slide 24: Integrated Steel Plant, Angul; Pellet Plant, Barbil
ODISHA INTEGRATED STEEL PLANT, ANGUL PELLET PLANT, BARBIL 23
Slide 25: Chhattisgarh & Jharkhand
CHHATTISGARH & JHARKHAND INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR WRM & BRM, PATRATU ,JHARKHAND 24
Slide 26: Thank You!
THANK YOU! non STEEL & POWER
Jindal Steel & Power — Q2 FY2023 Earnings Presentation on 6ix