Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Debt Investor Presentation (September 2021)
43 slides from Jsw Steel's debt investor presentation, September 2021
Slide 1: JSW Steel Limited Investor Roadshow Presentation
JSW Steel Limited Investor Roadshow Presentation September 2021
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This presentation and the accompanying slides (the “Presentation”)
Slide 3: Offering Summary
Offering Summary Issuer • JSW Steel Limited (the “Company”) Structure • Senior Unsecured Notes Corporate ratings(a) • Moody’s: Ba2 (Positive (b)) / Fitch: BB- (Positive) Expected issue ratings(a) • Moody’s: [Ba2] / Fitch: [BB-] Distribution • Reg S / 144A Issue size • Benchmark Tenor • Long-5 and/or
Slide 4: Sustainability-Linked Bond Framework
Sustainability-Linked Bond Framework Bond Framework Aligned with Sustainability-Linked Bond Principles (ICMA, Jun-20) Key performance • CO2 emissions intensity, calculated as tonnes CO2 per tonne of crude steel produced (Scope 1 and 2) indicator (KPI) Sustainability • CO2 emissions intensity reducti
Slide 5: Agenda
Agenda Overview Key Credit Highlights AGENDA Sustainability Appendix 5
Slide 6: Agenda
Agenda Overview Key Credit Highlights AGENDA Sustainability Appendix 6
Slide 7: JSW Group – Overview
JSW Group – Overview * * • One of India’s leading integrated steel producers • Power producer with installed capacity of 4.6 • Manufacturer of Portland Slag Cement (PSC), • Installed crude steel capacity of 18 mtpa, GW (Hydro, Renewable and Thermal) Ordinary Portland Cement (OPC) and Ground expected
Slide 8: JSW Steel – Among India's Leading Steel Manufacturers
JSW Steel – Among India’s Leading Steel Manufacturers One of the leading steel Diversified product portfolio Integrated manufacturing process players in India • Wide portfolio of products – • Integrated steel manufacturing • One of the most geographically Hot rolled coil, cold rolled coil, facilitie
Slide 9: Consistently Delivered Transformational Growth and Value Creation
Consistently Delivered Transformational Growth and Value Creation Capacity (mtpa) Total revenue (US$bn)(a) EBITDA (US$bn)(a) CAGR FY02-21: 25% CAGR FY02-21: 14% CAGR FY02-21: 23% 11.4 2.5 2.7 18.0 18.0 18.0 18.0 18.0 10.7 9.8 9.9 2.0 1.6 1.4 7.8 3.9 2.6 0.6 1.6 0.2 0.04 FY02 FY10 FY18 FY19 FY20 FY21
Slide 10: Key Credit Highlights
Key Credit Highlights 1 Size, Scale & Growth Among India’s leading steel manufacturers with diversified geographical presence 2 Cost Leadership One of the lowest costs of conversion in India and globally Raw Material 3 Strong domestic iron ore linkage Security Diversified Product Strong margins furt
Slide 11: Global Steel - Strong Demand Recovery with Structural Factors in Place
Global Steel - Strong Demand Recovery with Structural Factors in Place for the Next Decade Crude Steel Production (mt) China Export (mt) Structural Drivers for Steel Demand over the Next Decade CY2019 CY2020 H1CY2021 0.2% yoy 64.0 53.7 1,878 1,874 7.0% yoy • Strong monetary and fiscal stimulus drivi
Slide 12: Indian Steel – Sharp Recovery in Production and Demand
Indian Steel – Sharp Recovery in Production and Demand Apparent Steel Consumption (mt) and YoY Growth (a) Key Themes % YoY Change -21% -85% -46% -26% -10% -11% 0% 6% 17% 12% 9% 7% 41% 660% 72% 28% 7% • Demand Recovery • Production and consumption recovering post 2nd 10.3 9.7 9.7 9.3 9.1 8.5 8.4 8.3
Slide 13: Indian Steel – Structural Positives to Drive Healthy Growth
Indian Steel – Structural Positives to Drive Healthy Growth Significant room for growth in steel Competitive Advantage India Steel: Strong Fundamentals (mt) consumption in India • World’s second-largest steel producer and consumer • Presence of abundant iron ore – fifth largest reserves in the world
Slide 14: Near Term Growth to Take Steel Capacity to 30.5 mtpa
Poised to Cater to Growing Demand for Steel in India - Near Term Growth to Take Steel Capacity to 30.5 mtpa Steel Capacity (mtpa) 1.5 30.5 5.0 1.0 5.0 18.0 Vijayanagar Dolvi FY21 FY22E FY23E FY24E FY25E FY25E Capacity expansion and enhancements to yield benefits • Integrated operations of 5 mtpa Dol
Slide 15: Key Strategic Priorities and Outlook for FY22
Key Strategic Priorities and Outlook for FY22 Safety and well-being of employees, families and communities is paramount; learnings from 2020 are helpful, and necessary protocols 1 and SOP’s are in place 2 Committed to Sustainability targets with focus on 5 key areas: Climate Change, Water Security,
Slide 16: Agenda
Agenda Overview Key Credit Highlights AGENDA Sustainability Appendix 16
Slide 17: Key Credit Highlights
Key Credit Highlights 1 Size, Scale & Growth Among India’s leading steel manufacturers with diversified geographical presence 2 Cost Leadership One of the lowest costs of conversion in India and globally Raw Material 3 Strong domestic iron ore linkage Security Diversified Product Strong margins furt
Slide 18: Diversified Geographical Presence
1 Diversified Geographical Presence India International Footprint Europe BPSL Chandigarh Bawal (ACCIL) Piombino, Italy BPSL Kolkata Kalmeshwar USA Plate & Coil Mill, Anjar Khopoli (ACCIL) BPSL Jharsuguda: 2.5+ mtpa Vasind & Tarapur JSW Ispat Special Product, Ohio:1.5 mtpa Raigarh: 0.95 mtpa Dolvi: 5
Slide 19: One of Lowest Costs of Conversion in India and Globally
2 One of Lowest Costs of Conversion in India and Globally Resilient business model based on Parameter(a) continued focus on cost leadership • Leading position on global conversion Conversion 10/10 8 10 10 8 7 10 cost curve costs; yields – Conversion cost of c.US$110/ton in FY21 Labor costs 10/10 7 7
Slide 20: Raw Material Security - Strong Domestic Iron Ore Linkage
3 Raw Material Security - Strong Domestic Iron Ore Linkage 13 Captive iron ore mines ensuring adequate raw material supply Raw material security • Won 6 iron ore mines in Karnataka through auctions in 2016 and Steel Plant 2018, and 3 mines in FY20 Karnataka – 9 mines Mines Steel Plant - Joint Contro
Slide 21: Strong Margins Enhanced by Downstream Capacities and Value Added Products
Strong Margins Further Enhanced by Significant Downstream 4 Capacities Producing Value Added and Special Products Product Hot Rolled Coated Products Colour Coated Tin Plate Cold Rolled Electrical Steel Alloy Steel Category Products Products Products Coil & Sheets Products Construction, Pipes & Tubes
Slide 22: Proven Track Record of Efficient Organic and Inorganic Growth
5 Proven Track Record of Efficient Organic and Inorganic Growth Combination of organic and inorganic growth 2002-2005 2006 2007 2009 2010 2011 • Capacity at 1.6 mtpa • Capacity at • 3.8 mtpa • Capacity at • 3.5 mtpa (HSM-2) • 49.3% stake in • SISCO(a) 3.8 mtpa • 1.0 mtpa – CRM 7.8 mtpa • JSW-JFE str
Slide 23: Sustainability Framework and Priorities
6 Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Mr. Malay
Slide 24: Robust Financial Profile and Stable Cash Flows
7 Robust Financial Profile and Stable Cash Flows Strong track record of volume growth Track record of Operating Revenues (US$bn)(c) 12.56 15.80 16.27 16.69 16.06 15.08 4.1 14.68 15.55 15.60 14.90 14.95 11.4 12.25 9.8 9.9 10.7 8.1 6.2 3.47 3.9 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 FY16 FY17 FY18 FY19
Slide 25: Strong Balance Sheet and Access to Diversified Funding Sources Globally
8 Strong Balance Sheet and Access to Diversified Funding Sources Globally Net Gearing (ND (a)/Equity) well Leverage (ND (a)/EBITDA) well Diversified Funding Sources under the stated cap of 1.75x under the stated cap of 3.75x 1.75x Bonds and 3.75x 4.0x INR debt Loans and debentures 1.38x Foreign 40%
Slide 26: Diverse Board and Experienced Management Team
9 Diverse 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 Nowa
Slide 27: Agenda
Agenda Overview Key Credit Highlights AGENDA Sustainability Appendix 27
Slide 28: 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 29: Environmental and Safety (1/2)
Environmental and Safety (1/2) 1 Key Initiatives LTIFR (Lost time injuries / mn hours) • 458,677 safety observations carried out and 22,800 e-learning modules completed in FY21 Safety • Intuitive AI-enabled safety platform for control rooms, supervisors and 0.35 0.32 management 0.26 • Rewards for em
Slide 30: Environmental and Safety (2/2)
Environmental and Safety (2/2) Key Initiatives 3 Specific Water Consumption (m3/tcs) • Maintain Zero Liquid Discharge status Water Security • Digitization for water consumption monitoring • Water saving through installation of technologies like coke dry quenching 3.60 3.79 and dry gas cleaning syste
Slide 31: Social Initiatives and Health & Safety
Social Initiatives and Health & Safety Social Initiatives Health & Safety Empowering communities with sustainable livelihoods US$22mn CSR spend in FY21 JSW is committed to providing a safe and healthy working +57,000 community reached out through environment and achieving an injury and illness fre
Slide 32: Sustainability-Linked Bond: Emission Target and Initiatives
Sustainability-Linked Bond : Emission Target and Initiatives Derivation of carbon emission target for 2030 Planned/ Potential initiatives to reduce CO2 intensity • The Sustainable Development Scenario (SDS) (a) requires direct Energy Transition from thermal to Renewable in steel making emission inte
Slide 33: Agenda
Agenda Overview Key Credit Highlights AGENDA Sustainability Appendix 33
Slide 34: Covid-19 Relief Efforts
Covid-19 Relief Efforts 1,200 MT >65,000 MT 20 Lakhs 1,500+ Oxygen provided Medical Oxygen Patients across Beds across JSW Highlights supplied in 530 hospitals everyday across hospitals 9 states Apr- June 2021 supported Ongoing Initiatives Hospitals with oxygenated beds: 1,000 beds Jumbo at Vijayana
Slide 35: Case Study: Carbon Capture & Use - DRI Plant
Case Study: Carbon Capture & Use - DRI Plant CCU Process at DRI Plant at Salav, Maharashtra CCUS is an important technological option for reducing 99.5% purity of CO2 Production Capacity of 100 TPD CO2 emissions in the energy 1 Directly Reduced Iron Carbon Capture & 4 sector and will be essential to
Slide 36: Annual Capex Update
Annual Capex Update US$mn 2,453 2,349 445 1,581 1,352 Actual Spent 2,008 1,581 1,107 997 FY21 FY22 FY23 FY24 On going Capex Prog New Projects Ongoing Capex Program New Projects Particulars US$mn Particulars US$mn Unspent Capex including creditors and acceptances 2,846 5mtpa brown field expansion at
Slide 37: Key Project Updates – Vijayanagar
Key Project Updates 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Project to be completed by FY24 CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • PLTCM project completed • One of the two CGL lines of 0.45 mtpa commissioned • Commissioning of 2nd
Slide 38: Key Project Updates – Dolvi and Others
Key Project Updates Expansion from 5 to 10 mtpa Doubling steel making capacity from 5 mtpa to 10 mtpa • Coke Oven: commenced production in February 2021 • Pellet plant: commissioned in March 2021 Dolvi • HSM: Successfully rolled 1st slab in March 2021 • CDQ-2 (Coke Dry Quenching) was commissioned du
Slide 39: Digitalisation: JSW's Approach & Impact Created
Digitalisation: JSW’s Approach & Impact Created Non-sequential waves with continuous introduction of digital lighthouses Wave 4 and beyond Scale digital to best in class 4 3 Wave 3 Expanding the art of possible to E2E 100+ 6,000+ 200+ plant Digitalisation and other Digital Assets Employees engaged D
Slide 40: JSW's Digital Focus Areas
JSW’s Digital Focus Areas Additional Focus Technologies Used IoT, Artificial Intelligence, Mining Analytics, Cloud/Fog/Edge Computing, RPA leveraging Safety Procurement JSW Digital team as well as and Security Startup ecosystem & Experts Finance Primary Supply Focus Chain Process Excellence focus Le
Slide 41: FY 2022 will Unlock New Digital Frontiers
FY 2022 will Unlock New Digital Frontiers Select initiatives Improve efficiency and boost safety through Yard Management Automation FY'22 Plan Eliminating human dependency for cranes operations at coil yards using digital footprint & man less cranes – preventing operational delays and safety inciden
Slide 42: JSW Steel is Helping Build Key Infrastructure in India
JSW 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 43: Thank you
Jew sieel Thank you BETTER EVERYDAY
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