Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Investor Presentation (August 2019)
61 slides from Jindal Steel's investor presentation, Aug 19, 2019
Slide 1: Exchange intimation letter: Investor Presentation
JINDA STEEL & POWER August 19, 2019 BSE Limited 7 National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5“ Floor, ‘1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (F), Dalal Street, Fort, Mumbai - 400
Slide 2: Jindal Steel and Power Ltd Investor Presentation 1Q FY20
Jindal Steel and Power Ltd Investor Presentation 1Q FY20 (August’ 19) 1
Slide 3: Table of Contents
Table of Contents S No. Content Slides 1 The Company 3-9 2 Overview & Business Segments 10-19 3 Power Business 20-25 4 Global Ventures 26-34 5 Financial & Operational Highlights 35-41 6 Facilities at a glance 42-49 7 CSR Initiatives 50-55 8 Rewards & Recognitions 56 9 Contact Us 57 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 V.R Sharma N.A. Ansari Managing Director Joint Managing Director • Experience: >38 years. • Experience: >43 years. Deepak Sogani Sudhanshu Saraf CFO - JSPL CEO – Steel • Experience: >30 years • Experience: >30 years Bharat Rohra Rajeev Jain MD & CEO - Power CFO - JPL • Ex
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-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 30-Jun-19 Promoters 61.89% 61.89% 61.89% 61.89% 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% 60.52% Institutional Investors 20.00% 19.39% 19.57% 18.91% 21.
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
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 (10.25 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 1.80 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 1.8 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
D riscren jinpae” Rail Parallel Flange Beams & Columns Channel Track Rail: IRS 52, UIC 60(ENKE2), UIC 54E Sections: UB, UC, NPB, WPB, IPE and HE series. Sizes: 75mm to 400mm Crane Rails: CR 80, CR 100 Size range: 180m to 900mm AAAAAAASAAANNAD NAD RUAAAAAAAD DD AD DDD DADA NSE AA AE ELLA AAAAAAAAAAAA
Slide 18: JSPL Product Range
INNOVAT Fabricated Structures Cut & Bend Plates Width: 1500mm to 4900mm Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use Thickness: 5mm to 150mm Star Coulums TMT Rebars Sections: Depth: 350mm - 3000mm, Flange Width: 250mm - 1000mm, Length: 3 to 18 meters Coils Welded
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: Jindal Panther
a oS PANTHER JINDAL?
Slide 22: 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 23: 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) 22
Slide 24: 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 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 60 (Phase 1) Afte
Slide 26: 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 27: Corporate Office, Jindal Africa
Corporate Office, Jindal Africa 26
Slide 28: Summary of International Operations
Summary of International Operations Shadeed, Oman ◼ 1.8 MT HBI, 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 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: Jindal Shadeed Iron & Steel, Oman
Jindal Shadeed Iron & Steel, Oman Marching towards becoming a Fully Integrated Steel Plant 1.8 HBI 2.4 MTPA SMS 1.4 MTPA Rolling Mill 29
Slide 31: 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 32: 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 31
Slide 33: 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 : Upto 5 MTPA 32
Slide 34: 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 : > 2 MTPA ➢ Logistics : Port Kembla - Less than 20 kms 33
Slide 35: 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 36: Financial & Operational Highlights
JINDAL? FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 37: Quarter Highlights
STANDALONE CONSOLIDATED DOMESTIC EBITDA Total Revenue Total Revenuexx JSPL EBITDA 8,237 up 6%YoY 11,099 QoQ xxxup 4% YoY QoQ POWER Steel & related products volumes 1.51 Million Tonnes 18% UP BY 16% YoY JSPL Consolidated Jindal Power Limited Revenue 1,114 up by 15% YoY RAIL 35% Generation 2,982 MU Up
Slide 38: 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 39: Operational Performance
OPERATIONAL PERFORMANCE Consolidated Steel Production Consolidated Steel Sales 1.66 1.19 1.16 1.15 1.30 1.27 1.32 1.39 1.72 1.65 1.68 1.68 1.95 1.85 1.11 1.08 1.16 1.31 1.15 1.35 1.36 1.61 1.75 1.65 1.91 1.84 2.00 2.00 1.80 1.80 0.45 0.39 0.46 0.41 1.60 1.60 0.46 0.38 0.46 0.47 0.43 0.48 0.42 0.45 1
Slide 40: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS Q4 FY 19 Q1 FY 20 % VAR PARAMETER(IN CRORES OF INR) Q1 FY 20 Q1 FY 19 % VAR 7,402 7,085 4% Turnover 7,085 6,734 5% 1,440 1,608 12% EBITDA 1,608 1,645 2% 19% 23% EBITDA % 23% 24% 576 567 2% Depreciation + Amortization 567 577 2% 979 697 29% Interest 697 605 15% (115) 34
Slide 41: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS Q4 FY 19 Q1 FY 20 % VAR PARAMETER(IN CRORES OF INR) Q1 FY 20 Q1 FY 19 % VAR 10,159 9,946 2% Turnover 9,946 9,665 3% 18% EBITDA 5% 1,845 2,173 2,173 2,277 18% 22% EBITDA % 22% 24% 56% Depreciation + Amortization 1% 2,373 1,054 1,054 1040 5% Interest 14% 1,163 1,109 1,
Slide 42: JPL Key Financials
JPL KEY FINANCIALS Q4 FY 19 Q1 FY 20 % VAR PARAMETER(IN CRORES OF INR) Q1 FY 20 Q1 FY 19 % VAR 999 1,114 12% Turnover 1,114 968 15% 267 360 35% EBITDA 360 314 15% 27% 32% EBITDA % 32% 33% 324 289 11% Depreciation + Amortization 289 329 12% 236 217 8% Interest 217 216 - 44 (3) PBT (Before Exceptional
Slide 43: JSPL Consolidated Debt Bridge QoQ
JSPL CONSOLIDATED DEBT BRIDGE QoQ DEBT BRIDGE 1QFY20 (Rs. In Cr.) 1440 49 52 26 39084 37621 Net Debt as on 31st Net debt Reduction Fx Impact Ind As Adjustment & Net Movement in Cash & Net Debt as on 31st Mar'19 other adjustment Cash Equivalents June'19 42
Slide 44: Facilities at a glance
Facilities at a glance
Slide 45: 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 44
Slide 46: India
INDIA
Slide 47: Chhattisgarh
Chhattisgarh Integrated Steel Plant,Raigarh Steel Fabrication Plant, Punjipatra Heavy Machinery Division, Raipur Tamnar,3400 MW Power plant 46
Slide 48: Odisha
Odisha Integrated Steel Plant , Angul Pellet Plant, Barbil 47
Slide 49: Jharkhand
Jharkhand WRM & BRM, Patratu 48
Slide 50: Oman
OMAN
Slide 51: Jindal Shadeed, Oman
Jindal Shadeed, Oman 50
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 1.7 Lakh+ 17 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 “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 59: For any information please contact
For any information please contact: - Mr. Nishant Baranwal – VP & 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
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
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