Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (February 2022)
46 slides from Jsw Steel's investor presentation, February 2022
Slide 1: JSW Steel Limited Corporate Presentation February 2022
JSW Steel Limited Corporate Presentation February 2022 JSW Steel Corporate Presentation: February 2022
Slide 2: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 3: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 3
Slide 4: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 4
Slide 5: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Mr. Malay Mu
Slide 6: Climate Change: Emission Target and Initiatives
Climate Change: Emission Target and Initiatives Derivation of carbon emission target for 2030 Planned/ Potential initiatives to reduce CO2 intensity • The Sustainable Development Scenario (SDS) (a) requires direct Energy Transition from thermal to Renewable in steel making emission intensity of crud
Slide 7: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 7
Slide 8: JSW Group – Overview
JSW Group – Overview * • Power producer with installed capacity of 4.6 GW • Engaged in development and (Hydro, Renewable and operations of ports Thermal) • Operational capacity 110 mtpa * • Growing to 10 GW in • Operations across East, West medium-term with 70% & Southern coasts of India renewable p
Slide 9: JSW Steel – Among India’s Leading Steel Manufacturers
JSW Steel – Among India’s Leading Steel Manufacturers One of the leading steel players in Diversified product portfolio Integrated manufacturing process India • Extensive portfolio of products – • Integrated steel manufacturing • Most geographically diversified steel Hot rolled coil, cold rolled coi
Slide 10: Transformational Growth and Value Creation
Transformational Growth and Value Creation Capacity (mtpa) Total revenue (` 000’s Cr) EBITDA (` 000’s Cr) CAGR FY02-21: 14% CAGR FY02-21: 23% CAGR FY02-21: 25% 100.8 29.8 26 85.0 80.4 73.4 73.9 20.1 18.0 18.0 18.0 18.0 19.0 14.8 11.9 7.8 19.5 4.2 1.6 0.3 1.6 FY02 FY10 FY18 FY19 FY20 FY21 9M FY02 FY1
Slide 11: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 11
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Size, Scale & Growth Leading steel producer in India with near-term growth to take capacity to 36 mtpa 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins further enhanced by significant downstream c
Slide 13: Leading and Most Geographically Diversified Steel Producer in India
1 Leading and Most Geographically Diversified Steel Producer in India India International Footprint Europe Rajpura BPSL Chandigarh Bawal Piombino, Italy BPSL Kolkata Kalmeshwar Plate & Coil Mill, Anjar USA Khopoli Vasind & Tarapur BPSL Jharsuguda: 2.75 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa (JISPL)
Slide 14: BPSL- Facilities and Capacities Overview
1 BPSL- Facilities and Capacities Overview Chandigarh Kolkata Expansion Plan Cold Rolled Steel Strips and Value added: CRCA, GI/GL Precision Tubes Crude steel Capacity 5.00 2.75 mtpa Jharsugudha Netrabandha Integrated Steel Plant with Iron Ore Mine: 82mt 3.50 Captive Power Plant Reserves 2.75 Downst
Slide 15: Near-term Growth to Take India Capacity to 35.5 mtpa
1 Near-term Growth to Take India Capacity to 35.5 mtpa Significant room for growth in steel India Steel: Strong Fundamentals (mt) consumption in India Near-term growth in JSW Steel’s India steel capacity (mtpa) Crude Steel Crude Steel Finished Steel Capacity Production Demand China, Vijayanagar Expa
Slide 16: Lowest Cost of Conversion in India, One of the Lowest Globally
2 Lowest Cost of Conversion in India, One of the Lowest Globally Resilient business model based on continued focus on cost leadership WSD Aggregate Ranking(a) Leading position on global conversion cost curve – Conversion cost of c.$110/ton in FY21 # 4 ranked in Asia Technology, analytics and innovat
Slide 17: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 14 Captive iron ore mines ensuring adequate raw material supply Raw material security • Won 6 iron ore mines in Karnataka through auctions in 2016 and Steel Plants 2018, and 3 mines in FY20 Karnataka – 9 mines Mines – Targeting 6-7 mtpa in FY22 from the Karnataka m
Slide 18: Strong Margins Further Enhanced by Significant Downstream Capacities
Strong Margins Further Enhanced by Significant Downstream 3 Capacities Producing Value Added and Special Products Product Category Hot Rolled Coated Products Colour Coated Tin Plate Cold Rolled Electrical Steel Alloy Steel Products Products Products Coil & Sheets Products Construction, Pipes & Tubes
Slide 19: Delivering Sustainability With Our Value Added Products (1/2)
3 Delivering Sustainability With Our Value Added Products (1/2) • One of the largest domestic suppliers of Tinplate products • Adding 250KTPA capacity at Tarapur, Maharashtra to meet the surging demand of food packaging industry • Brand Platina is enabling import- and plastic- substitution • Meeting
Slide 20: Delivering Sustainability With Our Value Added Products (2/2)
3 Delivering Sustainability With Our Value Added Products (2/2) • Key contributor to India’s commitment to Renewable energy • Brand Galvos being widely used in solar structure installations, replacing imports Electrical Steel • Cold Rolled Non-Grain Oriented: Manufacturing with technology from All f
Slide 21: Sustainability at the core of the enterprise
Sustainability at the core of the enterprise. Actively pursuing 4 climate change agenda SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65* 19% Climate • Increased use o
Slide 22: Environmental Performance
4 Environmental Performance Specific energy consumption (Gcal/tonne) GHG emission intensity (tCO2/tcs) Specific freshwater consumption (m3/tcs) 6.59 2.75 4.13 6.56 3.79 6.43 2.59 6.38 2.6 2.41 2.43 2.52 2.52 6.24 2.49 FY18 FY19 FY20 FY21 9M FY22 FY18 FY19 FY20 FY21 9M FY22 FY18 FY19 FY20 FY21 9M FY2
Slide 23: Case Study: Carbon Capture & Use - DRI Plant
4 Case Study: Carbon Capture & Use - DRI Plant CCU Process at DRI Plant at Salav, Maharashtra CCUS is an important technological option for reducing 99.5% purity of CO2 Production Capacity of 100 TPD CO2 emissions in the energy 1 Directly Reduced Iron Carbon Capture & 4 sector and will be essential
Slide 24: Health & Safety
4 Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury & occupational illness free work place. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety Health and Safety Competency Awards & Initiatives Development Recognitions
Slide 25: Empowering Our Communities
4 Empowering Our Communities JSW Foundation became the first Indian JSW Foundation becomes member of foundation to receive ISO 26000:2010 assurance New Initiatives & Updates United Nations Global Compact for contributing to sustainable development Inculcating Critical Additional Water Life Skills St
Slide 26: Strong Board and Experienced Management Team
5 Strong Board and Experienced Management Team Chairperson — Emeritus Chairman and MD Savitri Devi Jindal Sajjan Jindal JSW-JFE partnership Partnership overview Executive Directors • 14.99% minority stake bought by JFE in 2010 • Access to cutting edge technologies Seshagiri Rao M.V.S Dr. Vinod Nowal
Slide 27: Proven Track Record of Efficient Organic and Inorganic Growth
6 Proven Track Record of Efficient Organic and Inorganic Growth Combination of organic and inorganic growth 2002-2005 2006 2007 2009 2010 2011-2012 • Capacity expanded from • Capacity increased to • Capacity • 3.5 mtpa (HSM-2) • 49.3% stake in • Capacity 1.6 mtpa to 2.5 mtpa 4.8 mtpa increased • JSW
Slide 28: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Operating Revenues (₹ 000’s Cr) 99.5 12.17 12.63 12.56 15.80 16.27 16.69 16.06 15.08 12.61 84.8 79.8 14.68 15.55 15.60 14.90 14.95 73.2 73.3 11.86 12.03 12.25 11.22 60.5 51.2 53.0 46.0 FY14 FY1
Slide 29: Prudent Capital Allocation: 10 Year TSR CAGR of 27%, and Uninterrupted Dividends
Prudent Capital Allocation: 10 Year TSR CAGR of 27%, 7 and Uninterrupted Dividends ROCE Uninterrupted Dividends DPS ` / Sh 8.0 20.0% 6.50 19.6% 16.4% 6.0 14.8% 12.7% 11.9% 9.6% 4.0 6.3% 2.0 0.0 FY14 FY15 FY16 FY16 FY18 FY19 FY20 FY21 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Market cap
Slide 30: Strong Balance Sheet and Access to Diversified Funding Sources Globally
8 Strong Balance Sheet and Access to Diversified Funding Sources Globally Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well Diversified under the stated cap of 1.75x under the stated cap of 3.75x Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 1.14x 1.02x 2.60x 2.40x 2.61x INR debt, Loans a
Slide 31: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 31
Slide 32: Digitalisation: JSW’s Approach & Impact Created
Digitalisation: JSW’s Approach & Impact Created Non-sequential waves with continuous introduction of digital lighthouses Wave 4 and Vision 2025 E2E Digital Transformation 4 across functions and group We are 3 Wave 3 Expanding the art of possible to E2E 130+ 6,000+ 400+ Employees engaged Digital ligh
Slide 33: JSW’s Digital Focus Areas
JSW’s Digital Focus Areas Additional Focus Technologies Used Core Systems (SAP, SF, GCP, Mining Azure, Darwin Box), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA-leveraging Safety, Security, Sustainability led JSW Digital team as well as Finance Governance R&D Primary Supply Startup ecosystem Foc
Slide 34: JSW- Industry 4.0 for Digital Steel Plants and Value Chain
JSW- Industry 4.0 for Digital Steel Plants and Value Chain Fleet and fuel management system AI Enabled Security Surveillance Integrated Control Tower Artificial Cloud System Dashboards (Several Intelligence Computing plants) Level-2 Automation Inventory Tracking Process Yard Management System Track
Slide 35: Technology Initiatives beyond Industry 4.0
…Initiatives beyond Industry 4.0 leading to significant value generation JSW’s Digital transformation along B2B sales 3 dimensions… direct connect (JSW One for MSME) Outbound Advanced spend Logistics and cube analytics – IoT network category rooms optimizer (procurement-cpc) (mines) Technology Analy
Slide 36: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 31 Appendix 36 JSW Steel Corporate Presentation: February 2022 36
Slide 37: Global Steel
Global Steel Crude Steel Production (mt) Steel Demand (mt) China Steel Production and Export (mt) CY19 CY20 CY21 CY19 CY20 CY21F (Oct) CY22F (Oct) China Crude Steel Production (LHS) 150 10 2.2% 3.6% Exports (RHS) 8 1,896 1,855 0% 100 1,775 1,774 -3.0% 4.7% 6 1,912 1,874 1,845 12.7% 4 50 995 985 985
Slide 38: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY22 Q3 FY22 Finished Semis Finished Semis 3.1% 9.1% -10.5% -37.5% QoQ Trend 30.47 1.25 1.12 5.99 3.74 29.55 26.95 0.04 24.71 0.04 1.79 1.17 1.22 1.09 4.20 2.58 Crude Steel Production Apparent Steel Consumption Q2
Slide 39: Annual Capex Update
Annual Capex Update ₹ crore 18,240 17,465 3,310 10,053 11,752 Actual Spent 14,930 11,752 8,232 7,412 FY21 FY22 FY23 FY24 On going Capex Prog New Projects Ongoing Capex Program New Projects Particulars ₹ crore Particulars ₹ crore Unspent Capex including creditors and 5 mtpa brown field expansion at V
Slide 40: Key Project Updates - Dolvi
Key Project Updates - Dolvi Expansion from 5 to 10 mtpa Integrated Steel production commenced and ramp-up is under way. 5 mtpa Steel-making Operations – Key Elements: • Pellet plant of 8 mtpa • Two Phases of Coke Oven battery totaling to 3 mtpa capacity • Blast Furnace and Steel Melt Shop • Hot Stri
Slide 41: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Civil work commenced on the site • Project to be completed by FY24 CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • PLTCM project completed in Q4 FY21 • One of the tw
Slide 42: Key Project Updates - Others
Key Project Updates - Others Vasind and Tarapur: Downstream projects • Modernisation-cum-capacity enhancement projects o All expansions commissioned, including 0.45 mtpa GI/GL at Vasind in October 2021. o 0.25 mtpa Color Coating Line commissioned in May 2021 • 0.5mtpa Continuous Annealing Line at Va
Slide 43: Case study: Turnaround Strategy at JSW Ispat’s Dolvi plant
Case study: Turnaround Strategy at JSW Ispat’s Dolvi plant JSW Steel has a proven track record of identifying, acquiring and integrating assets creating synergies and optimizing costs Completed initiatives – December 2010 FY2016 – 2017 FY2018 – 2022 FY2011 – 2015 • Plant under maintenance • Infusion
Slide 44: Awards & Recognitions
Awards & Recognitions • Rated at Leadership Level (A-) by CDP • JSW Steel included in the Dow Jones Sustainability Index for Emerging Markets • WSA Steel Sustainability Champions 2019 and 2020 • Corporate Governance & Sustainability Vision Awards 2020 2020 & 2021 • “Steelie Award“ by WSA for Excelle
Slide 45: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India FY21 Water Pipelines: c.450 km of water Solar Project: Contributed 1.75GW pipelines across major projects power (c.78%) by supplying to world’s largest Solar Park - Bhadla Solar Park (RJ) Oil & Gas Pipelines: c.300 km of pipelines across major p
Slide 46: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Corporate Presentation: February 2022 46