Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q4 FY2019 Earnings Presentation
61 slides from Jindal Steel's earnings presentation, May 27, 2019
Slide 1: Exchange filing cover letter
a STEEL & POWER May 27, 2019 BSE Limited The National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5" Floor, 41 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 Mu
Slide 2: Investor Presentation 4Q FY19
Jindal Steel and Power Ltd Investor Presentation 4Q FY19 (May’ 19) 1
Slide 3: Table of Contents
Table of Contents S No. Content Slides 1 The Company 3-9 2 Overview & Business Segments 10-20 3 Power Business 21-27 4 Global Ventures 28-35 5 Consolidated Performance 36-39 6 Facilities at a glance 40-50 7 CSR Initiatives 51-56 8 Rewards & Recognitions 57 9 Contact Us 58 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: 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 8: Best in Class Management
…& Best in Class Management N.A. Ansari Sudhanshu Saraf Joint Managing Director CEO – Steel • Experience: >38 years. • Experience: >30 years Deepak Sogani Bharat Rohra CFO MD & CEO - Power • Experience: >30 years • Experience: >30 years Pankaj Gautam Rajeev Jain COO CFO - JPL • Experience : >44 year
Slide 9: 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 10: Shareholding of JSPL from FY16
Shareholding of JSPL from FY16 30-Jun-16 30-Sep-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 Promoters 61.89% 61.89% 61.89% 61.89% 61.89% 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% Institutional Investors 21.33% 20.00% 19.39% 19.57% 18.
Slide 11: 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 10 **1000 MW Divestment announced
Slide 12: 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 13: 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 12
Slide 14: 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 HBI 1.5 DRI 1.32 MTPA BF 3.2 MTPA MTPA WRM SMS Capacity in deail DRI 1.8 MTPA 0.60 3.6MTPA NEOF 2.5 MTPA Plate Mill MTPA Pellet SMS 2.4 Tamnar Iro
Slide 15: 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 14
Slide 16: 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 1
Slide 17: JSPL Product Range
@ ram PANTHER Rail Track Rail: IRS 52, VIC 60(EIKE2), UIC 54E Crane Rails: CR 80, CR 100 Angles Sizes: 50mm to 250mm Parallel Flange Beams & Columns Sections: U8, UC, NPB, WPB, IPE and HE series. Size range: 180m to 900mm Wire Rods Grades: MS, MC & HC, EO, Boron and other Alloy Stee! Size range: 5.2
Slide 18: JSPL Product Range
INNOVATIVE PRODUCTS — —_—__ Plates Fabricated Structures Cut & Bend Width: 500mm to 4900mm Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use Star Coulums TMT Rebars Thickness: 5mm to 150mm Sections: Depth: 350mm - 3000mm, Flange Width: 250mm - 1000mm, Length: 3 to 18
Slide 19: 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 20: Extensive Sales and Distribution Network
Extensive Sales and Distribution Network Plants Distributors Stockyards Pan India presence with multiple customer touch points 19
Slide 21: 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 22: Power Business
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)
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 – market Mahanadi Coal Limited (MCL) Coal sourced through – market FSA purchase and e-auction and South Eastern Coalfields pu
Slide 26: 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 60 (Phase 1) Afte
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: JPL Financials
JPL Financials Net Sales PAT Generation Cash Profit Particulars (Rs. Cr.) (Rs. Cr.) (MU) (Rs. Cr.) Year 2018-19 3858 (436) 10396 816 Year 2017-18 4,059 (673) 10,905 778 Year 2016-17 3,119 (668) 9,176 656 Year 2015-16 2,997 (766) 9,542 706 Year 2014-15 3,228 (171) 10636 523 Year 2013-14 2,457 1,107 8
Slide 29: Global Ventures
Corporate Office, Jindal Africa 28
Slide 30: Summary of International Operations
Summary of International Operations Shadeed, Oman 1.5 MT HBI, 2.4 MT SMS Plant & 1.4 MT Rebar Mill – an Integrated Steel Plant Mozambique, Africa Developing 3MTPA coal mine in Mozambique’s coal-rich Moatize region South Africa, Africa Australia 60.38% stake in Wollongong JSPL’s Kiepersol Col
Slide 31: 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 Integrated Steel Thermal/ Coking Coal Coking Coal Anthracite Coal plant 30
Slide 32: Jindal Shadeed Iron & Steel, Oman
Jindal Shadeed Iron & Steel, Oman Marching towards becoming a Fully Integrated Steel Plant 1.5 HBI 2.4 MTPA SMS 1.4 MTPA Rolling Mill 31
Slide 33: 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 (category 1.5MTPA) Products : TMT Rebars
Slide 34: 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 33
Slide 35: 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: 132 MT Products : Semi Hard coking coal , High Grade Thermal Coal Mining Capacity : 3 MTPA 34
Slide 36: 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 Mining Capacity : Targeting 2 MTPA Logistics : Port Kembla - Less than 20 kms 35
Slide 37: 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 38: 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 39: 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 40: JSPL Consolidated Financials
JSPL Consolidated Financials Net Sales EBITDA EBITDA Interest PAT Particulars (Rs. Cr.) (Rs. Cr.) % (Rs. Cr.) (Rs. Cr.) Year 2018-19 39,372 8,406 21% 4,264 (2,412) Year 2017-18 27,841 6,469 23% 3,866 (1,624) Year 2016-17 22,696 4,709 21% 3,441 (2,540) Year 2015-16 20,368 3,437 17% 3,254 (3,086) Year
Slide 41: Facilities at a glance
Facilities at a glance
Slide 42: 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 41
Slide 43: India
INDIA
Slide 44: Chhattisgarh State
Chhattisgarh State
Slide 45: Raigarh, Raipur, Punjipatra, Tamnar
Raigarh Punjipatra Raipur Tamnar,3400 MW Power plant 44
Slide 46: Odisha State
Odisha State
Slide 47: JSPL Angul, Pellet Plant Barbil
JSPL, Angul Pellet Plant, Barbil 46
Slide 48: Jharkhand State
Jharkhand State
Slide 49: JSPL, Patratu
JSPL, Patratu 48
Slide 50: Oman
Oman
Slide 51: Jindal Shadeed, Oman
d, Oman 8) i) dS = “~ | — 1 S Sd = =
Slide 52: Making Sustainability A Focus Priority
Making Sustainability A Focus Priority 51
Slide 53: 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 52
Slide 54: Sustainable CSR
Sustainable CSR SUSTAINABLE DRINKING WATER & LIVELIHOOD & HEALTH & NUTRITION EDUCATION SKILL BUILDING SANITATION WOMEN EMPOWERMENT 1.5 Lakh+ 12 Lakh+ 15000+ 1 Lakh + 9000+ People provided Adolescent girls and People provided with Students empowered with vocational women benefitted from safe and clea
Slide 55: Sustainable CSR
Sustainable CSR ENVIRONMENT & COMMUNITY SPORTS ART & CULTURE SOCIAL INCLUSION AGRICULTURE INFRASTRUCTURE 30 Lakh+ 8000+ 400+ 12 Lakh+ 150+ Performing artists Sports talents trained and traditional People provided/ Saplings Planted/ 10 Parentless children and developed for artisans benefitted with La
Slide 56: Health & Safety Best Practices
Health & Safety Best Practices SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS 55
Slide 57: Health & Safety Best Practices
Health & Safety Best Practices TOOL BOX MEETINGS SAFETY AWARDS/REWARDS MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS 56
Slide 58: Recent Awards & Recognitions
Recent Awards & Recognitions • Prestigious Award for Achievement in Supply of Railway Tracks, Rail Analysis Award 2019 • JSPL was awarded “Outstanding Company in Steel- Construction Category, EPC World Award 2018” • JSPL was awarded “FICCI CSR Award “ for Women Empowerment 2018 • JSPL was awarded “P
Slide 59: For any information please 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 60: 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 61: Thank You
THANK YOU 60
Jindal Steel & Power — Q4 FY2019 Earnings Presentation on 6ix