Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (November 2024)
62 slides from Jsw Steel's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024 JSW Steel Investor Presentation: Nov 2024 /
Slide 2: Agenda
Agenda Sustainability Company India Growth JSW Steel Products and Overview Opportunity Delivering Brands Portfolio Growth & Value 03 14 19 23 29 Digitalisation Governance Balance Sheet Appendix and R&D and Board and Debt Profile 39 45 48 52 JSW Steel Investor Presentation: Nov 2024 / 2
Slide 3: Sustainability
Sustainability Vijayanagar Steel Plant JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile Growth & Value
Slide 4: Sustainability at JSW Steel
Sustainability at JSW Steel Governance & Oversight by Board-level Business Responsibility & Sustainability Committee Climate Change Energy Resources Our Water Resources Indigenous People Cultural Heritage Business Ethics Focus Waste Waste Water Employee Wellbeing Local Considerations Human Rights Su
Slide 5: Environment: Our Targets & Commitments
Environment: Our Targets & Commitments Circularity & Climate Change Water Security Energy Transition Air Emissions Biodiversity • Targeting Net Neutrality • Maintaining zero liquid • Transition from • PM, SOx and NOx • Promoting Circular in carbon emissions by discharge thermal to renewables emissio
Slide 6: Building a Strong Health & Safety Culture
Building a Strong Health & Safety Culture Capability Building Initiatives ZERO major incidents Safety Vision ZERO injury • Digital Vision Platform to provide 24/7 real- ZERO harm time detection of safety violations with high accuracy. Implemented at Dolvi and Vasind (see Digitalisation section for f
Slide 7: Targeting Net Neutral by 2050: Decarbonization Agenda
Targeting Net Neutral by 2050: Decarbonization Agenda Phase-I Two Phases, Phase-II Progress So Far 2030 Two Milestones 2050 • Energy Efficiency: More than 40% of total energy consumed sourced from waste gases and waste heat • Process Efficiency: More than 250 projects under 1.95tCO2/tcs Net Neutral
Slide 8: Climate Action: Earth Care Awards
Climate Action: Earth Care Awards Taking Action for the Planet • Initiated by JSW with The Times of India in 2008 to recognise visionaries and innovators who are responding to the adversities of climate change • One of the leading awards in climate mitigation and adaptation • Comprehensive and rigor
Slide 9: Biodiversity: Committed to "No Net Loss"
Biodiversity: Committed to “No Net Loss” • Biodiversity Management Plan for all operating sites in place • “No Net Loss” assessment completed for Vijayanagar • Made significant positive impact in freshwater ecosystem • Removal of invasive species and offset development in Reserve Forest underway • C
Slide 10: Our Commitment to Society: Benefitting over 2.5mn Lives Annually
Our Commitment to Society: Benefitting over 2.5mn Lives Annually Education Health Skill Development Art, Culture & Heritage Education 19,00,000 15,00,000 46,000 7 Students Benefitted Health Consultations Individuals Trained Projects Supported Water, Environment & Sports Agriculture Waste Management
Slide 11: Our Commitment to Society
Our Commitment to Society Education Education Health Skill Development Art, Culture & Heritage • Roof to Dream: Refurbished 41 • TB-Mukt Panchayat • Shakti all-women BPO: • 157-year-old David schools in Maharashtra for program: 3M reached across Empowers 260 women for Sassoon Memorial 9,000+ student
Slide 12: Our Commitment to Society
Our Commitment to Society Agriculture Water, Environment and Waste Management Sports Sanitation • Inspire Institute of Sports • Enhancing • Lake rejuvenation in Bangalore • EcoKaari project: Upcycles (Karnataka): High agri-value chain: and Gujarat: 100,000 m³ water 4,000+ kg of waste plastic Perform
Slide 13: Environmental Performance Dashboard
Environmental Performance Dashboard Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.44 2.41 6.04 2.36 2.45 2.45 2.41 2.39 5.66 5.68 5.65 2.32 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY22 FY23 FY24 H1F
Slide 14: Company Overview
Company Overview Vijayanagar Steel Plant JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile Growth & Value
Slide 15: JSW Group Overview
JSW Group Overview • India’s largest steel producer • 10 GW power generation • Second largest private port • Capacity of 20.6 mtpa, growing with capacity of 35.71 mtpa portfolio by end of FY25 operator in India to ~40 mtpa • Growing to 43.5 mtpa by • Targeting 20GW generation • Strategically located
Slide 16: JSW Steel: India's Leading Steel Manufacturer
JSW Steel: India’s Leading Steel Manufacturer Fastest growing Indian steel producer Healthy balance sheet and access to Generated superior shareholder returns over the past two decades diversified funding sources Sustainability & Governance Integrated Manufacturing Diversified Product Portfolio at t
Slide 17: Growth and Value Creation Track Record
Growth and Value Creation Track Record Fastest growing steelmaker in India… … delivered 23% EBITDA CAGR … CAGR (FY02-Current) 15% 39.0 34.2 28.2 27.0 27.7 India Steelmaking ₹000’s 20.1 capacity (mtpa) 18.5 18.0 18.0 cr 11.9 7.8 4.2 1.6 0.3 FY02 FY10 FY20 FY21 FY22 FY23 Current FY02 FY10 FY20 FY21 FY
Slide 18: Most Geographically Diversified Steel Producer in India
Most Geographically Diversified Steel Producer in India J&K2 Europe India Rajpura BPSL Chandigarh Bawal BPSL Kolkata Piombino, Italy Kalmeshwar Plate & Coil Mill, Anjar Khopoli USA BPSL Jharsuguda: 4.5 Vasind & Tarapur mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa Ohio: 1.5 mtpa Vijayanagar: 17.51 mtpa Rai
Slide 19: India Growth Opportunity
India Growth Opportunity Salem Steel Plant JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile Growth & Value
Slide 20: India steel demand poised for healthy growth
India steel demand poised for healthy growth Nation-Building Phase Steel demand accelerates sharply once ASU per capita nears 100 kg • India going through a ‘Nation-Building Phase’ with rising urbanisation and infrastructure investment 450 400 • India’s elasticity of steel demand to GDP growth over
Slide 21: India: Strong Demand Tailwinds from Infra and Construction
India: Strong Demand Tailwinds from Infra and Construction Now Viksit Bharat by 2047 Infrastructure: National Infrastructure Pipeline of US$2.1 trn1 Policy Thrust Areas Manufacturing: Increasing share as a % of GDP from ~15% to 25% by 35% 53%2 2030; PLI scheme targeted to promote manufacturing Urban
Slide 22: India: Automotive and Energy Transition
India: Automotive and Energy Transition India has 4th largest Renewable capacity1 Low car penetration offers growth headroom 860 China 1,453GW India 176 GW Registered PVs per US 388GW 1,000 people 612 627 Brazil 194GW 458 358 277 223 India renewable India’s FY32 target 33 50 capacity CAGR of 15% 570
Slide 23: JSW Steel Delivering Growth & Value
JSW Steel Delivering Growth & Value Salem Steel Plant JSW Steel Company India Growth Delivering Products and Digitalisation Governance Balance Sheet Sustainability Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Growth & Value Brands Portfolio and R&D and Board and Debt Pro
Slide 24: Strategic Priorities to Create Shared and Sustainable Value
Strategic Priorities to Create Shared and Sustainable Value Mainstreaming Strategic growth Cost leadership Enhance value- Being future ready Strong financial sustainability with efficient through resource added product through profile and credit across the capital allocation optimisation and portfol
Slide 25: JSW Steel: Growing with India
JSW Steel: Growing with India India Capacity U.S. Capacity Vijayanagar BPSL Dolvi JISPL 35.7 43.5 51.5 2 1.5 8.0 50.0 0.3 1.5 5.0 42.0 2.0 1.5 0.5 34.2 Growth Options in the Portfolio Organic • Brownfield growth potential of ~5mt at each of Vijayanagar and BPSL • 4mt brownfield Green Steel in 2 phas
Slide 26: JSW Steel: Transforming Scale and Profitability
JSW Steel: Transforming Scale and Profitability India Capacity (mt) U.S. Capacity (mt) EBITDA (₹ cr) Share of 1 VASP55 25% 53% 61%3 51.5 50 1.5 35000 ₹28,236cr3 50.0 45 43.5 1.5 30000 40 42.0 35.7 25000 35 ₹18,952cr 1.5 2 30 34.2 20000 25 15000 ₹9,165cr 19.5 20 1.5 10000 15 18.0 10 14.3 5000 5 0 4 F
Slide 27: JSW Steel: Pillars of Transformation
JSW Steel: Pillars of Transformation Raw Materials Decarbonisation Growth Product Enrichment Cost Optimisation Security and Green Steel ➢ Strategy focused on ➢ Targeting VASP share ➢ Achieved 100% self ➢ Geographic ➢ Targeting 18mt of CO2 growth in India, >50% sufficiency in coke and optimisation of
Slide 28: Strong Raw Material Linkages
Strong Raw Material Linkages Iron Ore 13 Operational Iron Ore Mines Coking Coal 24 Mines with 1.6bnt R&R Karnataka • 13 mines currently – 9 Iron Ore mines • 3 coking coal mines in operational: Jharkhand, India with • 0.25 BnT of reserves Steel Plants 9 in Karnataka (~11mtpa) reserves of 159mt; to be
Slide 29: Products and Brands Portfolio
Products and Brands Portfolio Steel House Administrative Building, Vijayanagar Steel Plant Company India Growth JSW Steel Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D
Slide 30: Steel Products for Diverse Applications
Steel Products for Diverse Applications Infra & Construction Consumer Durables Pipes & Tubes Key Products • HR Plates, Coils & Sheets • HRPO • CRCA • Buildings (Resi. & • High Speed Rail Commercial) • Shipbuilding Flats • Electrical Steel • Roads • Renewables • Refrigerators • Oil & Non-Oil Cans • B
Slide 31: Leveraging Strong Brands for Value Added Products
Leveraging Strong Brands for Value Added Products Colour Coated Super premium, colour coated coils & sheets, with a 20-year warranty Premium colour coated coils & sheets, with a 15-year warranty Superior colour coated sheets for OEM customers, High quality Al-Zn alloy & colour coated anti- up to 20-
Slide 32: Leveraging Strong Brands for Value Added Products
Leveraging Strong Brands for Value Added Products Galvanised and Galvalume for Roofing Solutions Galvanised Premium GC (galvanized corrugated) sheet with high durability Premium Al-Zn coated Premium galvalume sheets Lead-free galvanized steel, suited for roofing (galvalume) offering corrosion protec
Slide 33: Focus on Building Brands and Increasing Value Added Sales
Focus on Building Brands and Increasing Value Added Sales Tinplate Zn-Mg-Al Coated Zn-Al Coated Tinplate coils and sheets used in Al-Zn-Mg coated galvanized steel offering better Al-Zn coated coils and sheets food and non-food packaging protection against moderate to aggressive corrosive designed fo
Slide 34: Focus on Building Brands and Increasing Value Added Sales
Focus on Building Brands and Increasing Value Added Sales Other Brands GreenPro certified TMT bars with unique rib pattern that provides best bonding with cement LRPC strands that enable longer ERW and superior quality GP span concrete structures pipes and tubes Cut-to-Length HR sheets Steel doors d
Slide 35: LRPC Steel Strands: Strengthening India's Infrastructure
LRPC Steel Strands: Strengthening India’s Infrastructure • LRPC (Low Relaxation Prestressed Concrete) Strands that facilitate wide span construction in infrastructure and buildings, allowing >25mtrs span between pillars. Engineered for challenging situations and environments Applications • Infrastru
Slide 36: Strong Retail and Influencer Network
Strong Retail and Influencer Network Retail Footprint 20,314 17,136 18,529 • Presence in 20,300 retail stores 15,964 16,030 2,499 1,356 1,953 across 1,750 towns in India 632 798 • Strong distribution channel of 17,815 16,576 15,780 15,332 15,232 2,974 points o 475 distributors o 2,499 Branded stores
Slide 37: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions JSW One Partner Online Shop Ecosystem • One of India’s leading integrated B2B commerce platforms catering to buying needs of MSMEs Ledger Product • Offers building material products, logistics and credit solution visibility search •
Slide 38: JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions
JSW One: One-Stop Digital Marketplace for MSMEs and Home Solutions Strong customer traction and stellar customer base Significant growth in Volumes & GMV Volumes Q2 FY25 67,600 Registered customers Steel Cement 6,400 3,86,000 MT 44,000 MT Transacted customers base Up 2.4x Up 2.7x YoY YoY 1,76,000 Vi
Slide 39: Digitalisation and R&D
Digitalisation and R&D BF Control Room, Vijayanagar Steel Plant JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile
Slide 40: Digitalization at JSW Steel
Digitalization at JSW Steel Increased Sales Manufacturing Manufacturing Manufacturing Supply Supply Chain Chain ADDITIONAL FOCUS Cost Optimisation Safety, Security, ANTICIPATED IMPACT Governance Asset Availability Finance Primary Mining Mining Sustainability Finance Focus led R&D Emissions Reduction
Slide 41: Digital Vision Platform for Enhanced Safety
Digital Vision Platform for Enhanced Safety AI-powered computer vision & automated insights by processing visual data feeds Highlights • Provides 24/7 real-time detection of safety violations with Computer Vison AI high accuracy • Enhanced situational awareness delivered through 15+ AI Automated & r
Slide 42: Enhancing Workplace Safety via Digitalisation
Enhancing Workplace Safety via Digitalisation Connected Work Force – Project Rakshak Key Technology Levers Flagship digital workplace safety improvement program which tracks the well being of all employees within the plant premises in real-time Location Information Deployed through distribution of S
Slide 43: Digitalization Driving End-to-End Transformation
Digitalization Driving End-to-End Transformation Industry 4.0 for Steel Plants Artificial Intelligence Process Automation • AI enabled Smart Surveillance • Digital Logistics management for route optimization • AI Bots improving workplace productivity • Advance Planning & Scheduling for Demand & Supp
Slide 44: R&D at JSW Steel
R&D at JSW Steel Focus Areas R&D Track Record FY20-24 New Product Partnerships Development 157 patents granted 126 technical papers Process Innovations published Energy Optimisation Achievements in FY24 48 new products Waste Utilization approved Collaboration with IIT-Bombay 51 new steel grades Upgr
Slide 45: Governance and Board
Governance and Board JSW Centre, Mumbai JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile Growth & Value
Slide 46: Strong and Experienced Board
Strong and Experienced Board Savitri Jindal Sajjan Jindal Jayant Acharya Gajraj Singh Rathore Arun Maheshwari Chairperson - Emeritus Chairman and MD Joint Managing Director and CEO Chief Operating Officer Director, Commercial & Marketing Board member from 2005 to Mechanical Engineer; At JSW Steel si
Slide 47: Robust Governance, Board with Diverse Skillsets
Robust Governance, Board with Diverse Skillsets Independent Audit Independent Directors 25% Women Independent Directors and Nominations & with wide range of expertise, Directors heading all major board Remunerations committees backgrounds and experience committees Statutory auditor Designated Lead 5
Slide 48: Balance Sheet and Debt Profile
Balance Sheet and Debt Profile Pipe Conveyor for Iron Ore, Vijayanagar JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Sustainability Delivering Appendix Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt P
Slide 49: Strong Financial Growth driven by Prudent Capital Allocation
Strong Financial Growth driven by Prudent Capital Allocation Strong track record of Volume growth… … resulting in healthy Revenue growth (₹000’s Cr) 15.80 16.27 16.69 16.06 15.15 19.51 24.16 26.43 176.0 167.0 24.78 147.9 22.39 18.18 14.68 15.55 15.60 14.90 15.08 85.0 80.4 73.4 73.9 60.7 FY17 FY18 FY
Slide 50: Track Record of Delivering Strong Shareholder Returns
Track Record of Delivering Strong Shareholder Returns ROCE Uninterrupted Dividends (₹/share) 20.0 29.8% 15.0 19.6% 19.5% 10.0 7.3 16.4% 14.8% 13.1% 5.0 9.6% 7.6% 0.0 FY14 FY17 FY20 FY23 FY12 FY13 FY15 FY16 FY18 FY19 FY21 FY22 FY24 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Market cap (₹ Cr) 10-year Tot
Slide 51: Strong Credit Ratings and Diversified Funding
Strong Credit Ratings and Diversified Funding Net Gearing (ND/Equity) within the Leverage (ND/EBITDA) within the Funding Sources stated cap of 1.75x stated cap of 3.75x 1.75x 4.50x 1.48x 1.17x Bonds and 1.04x 3.20x 3.51x debentures, 0.89x 0.93x 2.61x INR debt, 0.83x 2.62x Foreign 33% 46% currency 1.
Slide 52: Appendix
Appendix Vijayanagar Steel Plant JSW Steel Company India Growth Products and Digitalisation Governance Balance Sheet Appendix Sustainability Delivering Overview JSW Steel Investor Presentation: Nov 2024 / Opportunity Brands Portfolio and R&D and Board and Debt Profile Growth & Value
Slide 53: Proven Track Record of Organic and Inorganic Growth
Proven Track Record of Organic and Inorganic Growth 2002-2005 2006 2007 2009 2010 2011-2012 Capacity expanded • Capacity increased • Capacity • 3.5 mtpa (HSM-2) • 49.3% stake in • • Capacity from 1.6 mtpa to 2.5 to 4.8 mtpa increased to • JSW-JFE strategic Ispat industries increased to mtpa • 1.0 mt
Slide 54: Case Study: Turnaround Strategy at JSW Ispat's Dolvi plant
Case Study: Turnaround Strategy at JSW Ispat’s Dolvi plant Proven track record of identifying, acquiring and integrating assets creating synergies and optimizing costs Completed initiatives – FY2016 – 2017 FY2018 onwards FY2011 – 2015 At Acquisition • Infusion of equity • Capacity expanded to 5 mtpa
Slide 55: Proven Track Record of JVs and Partnerships
Proven Track Record of JVs and Partnerships Partnership overview • 50:50 JV with Severfield Plc, the largest steel • 50:50 JV with Marubeni Itochu Steel since • JFE acquired 14.99% in JSW Steel in 2010 and fabricator in UK, since 2009 2011 has maintained this stake • Complete Structural Steel Buildi
Slide 56: Plant-wise Steel Capacity
Plant-wise Steel Capacity In million metric tonnes per annum Approved Plant Current Sep’27 Expansion Vijayanagar* 17.5 2.0 19.5 Dolvi 10.0 5.0 15.0 BPSL - Jharsuguda 4.5 0.5 5.0 Salem 1.0 - 1.0 Raigarh 0.95 0.3 1.25 Raipur 0.25 - 0.25 India Operations 34.2 7.8 42.0 USA Ohio Operations 1.5 - 1.5 Tota
Slide 57: Global Steel
Global Steel Crude Steel Production – Jan-Sep (mt) Finished Steel Demand (mt) China Steel Production and Export (mt) Jan-Sep CY22 Jan-Sep CY23 Jan-Sep CY24 CY23 CY24F (as of Apr 24) CY24F (Oct 24) CY25F (Oct 24) 150 China Crude Steel Production (LHS) 12 -1.9% -0.9% 10 Exports (RHS) 100 8 1,421 1,420
Slide 58: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY24 Q1 FY25 Q2 FY25 Finished Semis Finished Semis +2.7% +11.6% 3.18 YoY YoY 0.39 36.23 37.09 35.29 36.53 1.66 2.20 +44.2% -15.2% 35.61 33.24 QoQ QoQ 0.33 0.26 1.79 1.49 2.79 0.24 1.27 +42.6% 0.22 -29.3% 1.89 1.94
Slide 59: Q2 FY25 Production and Sales
Q1 FY25 Production and Sales In million metric tonnes Particulars Crude Steel Production Sales Q2 FY25 Q2 FY24 YoY Q2 FY25 Q2 FY24 YoY Consolidated India Operations 6.63 6.20 7% 5.96* 6.18 -4% USA – Ohio Operations 0.14 0.14 3% 0.17 0.16 9% JSW Steel Consolidated Operations 6.77 6.34 7% 6.13* 6.34 -
Slide 60: Awards and Recognitions
Awards and Recognitions Leadership rating for 4th Global Energy Steel Sustainability consecutive year in Climate British Safety Council 5- Transition Change- Champion for the 6th Change, ‘A’ rating in star rating and Sword of makers Award for Honor award consecutive year Water Security SEED Project
Slide 61: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Rail Pipelines Metro Infra Renewables Nuclear High Speed Rail Water Pipelines 48 km Metro Expressways and 2.0 GW Solar 747 MW Nuclear (Mumbai-Ahmedabad 2,428 km Projects Highways 845 km Projects Power Plants Bullet Train) (Mumbai, Pune, Roads &
Slide 62: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in Vijayanagar Steel Plant JSW Steel Investor Presentation: Nov 2024 /