Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q1 FY2020 Earnings Presentation
36 slides from Jindal Steel's earnings presentation, Aug 14, 2019
Slide 1: Jindal Steel & Power exchange intimation letter
JINDA STEEL & POWER August 14, 2019 BSE Limited a National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5t* Floor, 15 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
Slide 2: Q1 FY'20 Industry Update & Key Performance Highlights
Q1 FY’20 Industry Update & Key Performance Highlights 14th August, 2019
Slide 3: Forward looking statements 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 such forwa
Slide 4: Q1 FY'20 Highlights
Q1 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 5: Q1 FY'20 key highlights
STANDALONE CONSOLIDATED DOMESTIC EBITDA Revenue 8,237 Revenue 11,099 JSPL EBITDA xx YoY 6% YoY QoQ4%xxx 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 by 13 % QoQ Jind
Slide 6: 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 7: 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 Approx. 30% of the long term debt repayment alr
Slide 8: Q1 FY'20 Industry Update
Q1 FY’20 INDUSTRY UPDATE HIGHLIGHTS COMPANY UPDATE
Slide 9: Global steel production increased
GLOBAL STEEL PRODUCTION INCREASED > Indian among fastest growing steel market > Global Steel Production improved significantly Fig in Mt 8.3% 925 CY 18 CY19 7.1% 882 6 month CY18 CY19 2.1% 2.0% 492 1.3% 448 57 1.0% 54 53 51 42 44 World China Middle East India 4.9% 10% 5% 3.6% 5.4% -2.6% World #1 Chi
Slide 10: Raw material prices remain firm, supporting steel prices
RAW MATERIAL PRICES REMAIN FIRM, WHICH SUPPORTED THE STEEL PRICES. Heavy rain in Rio Tinto cuts the FY 19 CFR China ($/MT) Brazil & volume guidance again Chinese Record Cyclone Veronica high steel In Australia production 120 > Iron Ore : The Incident 109 • Seaborne Iron ore prices in Brazil 99 95 93
Slide 11: Indian steel industry: Q1 FY'20 major highlights
INDIAN STEEL INDUSTRY : Q1 FY ’20 MAJOR HIGHLIGHTS Annual Quarter Fig in Mt 107 28 Crude Production (Q1 FY20) 103 27 3.3 4% % The Crude steel production grew by 4% during Q1 FY ‘20 (y-o-y) FY18 FY19 Q1 FY19 Q1 FY 20 98 25 Finished Steel Consumption (Q1 FY20) 7.5% 24 91 7% Finished Steel Consumpt
Slide 12: Import parity set the direction of domestic flat steel market
IMPORT PARITY SET THE DIRECTION OF THE DOMESTIC FLAT STEEL MARKET > Price Trend CFR India Vs Dom HRC Ex Works Import parity set the Domestic prices 620 603 609 Redirected imports from Japan + 600 580 Korea increased into India, 578 560 Domestic Prices softened in line with 540 533 International P
Slide 13: Power business
POWER BUSINESS Power Requirement v/s Availability (in BUs) Sector-wise PLF (%) 1274 90 1300 86 85 1195 85 82 1143 1268 84 81 79 1200 1114 80 1069 1187 76 75 74 73 1100 1135 71 72 73 996 1002 1091 70 67 70 71 1000 937 1031 68 66 65 62 862 960 64 61 900 831 60 59 60 909 56 60 58 55 56 858 55 56 800 54
Slide 14: IEX clearing price trend
IEX CLEARING PRICE TREND RTC Power Exchange Prices – W3 Region (Rs./kWh) 6.30 5.73 5.30 4.69 4.57 4.30 FY 15-16 3.97 4.02 FY 16-17 3.68 3.68 3.68 3.58 FY 17-18 3.45 3.33 3.30 3.33 FY 18-19 3.20 3.22 3.30 3.06 3.19 2.67 3.06 3.05 2.65 2.50 2.36 2.19 2.55 2.20 2.30 2.05 2.35 2.03 2.05 2.06 1.91 1.89 2
Slide 15: Q1 FY'20 Highlights
Q1 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 16: 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 **1000 MW Divestment announced
Slide 17: 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
Slide 18: Detailed plant wise capacities
DETAILED PLANT WISE CAPACITIES Raigarh Angul Barbil Patratu Oman JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP BF 2.125 225,000 MTPA HBI 1.8 Nm3/Hr DRI 1.32 MTPA BF 3.2 MTPA MTPA WRM SMS Capacity DRI 1.8in deail 0.60 3.6MTPA MTPA MTPA SMS 2.5 SMS 2.4 Iron Plate Mill Pellet Tamnar 1.00
Slide 19: 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
Slide 20: Potential for big leap
POTENTIAL FOR BIG LEAP UPSIDE FY19 CAPACITY PRODUCTION IN FY19 POTENTIAL STEEL – INDIA 8.6 MTPA 5.25 MTPA 64% CAPACITY STEEL – OMAN 2.4 MTPA(1) 1.71 MTPA 40% CAPACITY INDEPENDENT POWER CAPACITY 3,400 MW 1187 MW 186% PELLET 9.0 MTPA 7.08 MTPA 27% CAPACITY Upside potential remains to be exploited
Slide 21: 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 22: JSPL power capacities
JSPL - POWER CAPACITIES Independent Power Projects (IPP) CAPACITY CONFIGURA PROJECT FUEL STATUS (MW) TION TAMNAR 1* 1,000 Coal 4x250 MW Operational TAMNAR 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh CAPACITY STAT PROJECT FUEL CONFIGURATION Tamnar (MW) US Angul DCPP
Slide 23: Jindal Power Limited
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)
Slide 24: 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 After commercial
Slide 25: 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 26: 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 – Coal sourced through – Mahanadi Coal Limited FSA market purchase and e- market purchase and e- (MCL) and South Eastern auct
Slide 27: Summary of international operations
SUMMARY OF INTERNATIONAL OPERATIONS SHADEED, OMAN 1.8 MT HBI , 2.4 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant MOZAMBIQUE, AFRICA Developing a 3 MTPA coal mine in Mozambique’s coal- rich Moatize region SOUTH AFRICA, AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthraci
Slide 28: 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 29: 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% 1,845 2,173 18% EBITDA 2,173 2,277 5% 18% 22% EBITDA % 22% 24% 2,373 1,054 56% Depreciation + Amortization 1,054 1040 1% 1,163 1,109 5% Interest 1,109
Slide 30: Key customers & adding...
Pe KEY CUSTOMERS & ADDING... JINDAL — © ar NPCIL a £ = iaaiain a BEL Reuince SIMMA vadidid onto NTPC po ten) IndianOil & LANEO GL Group ‘J = farcaieite Indiabulls Indiabulls Power Limited eave tm \/) =o) S Punj Lloyd SIMPLEX at Miray projects gD A BANSAL INFRATECH Giismiorn | Seite tH r 0 g 0 iz iD
Slide 31: Odisha
ODISHA INTEGRATED STEEL PLANT , ANGUL PELLET PLANT, BARBIL 30
Slide 32: Chhattisgarh
CHHATTISGARH INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR TAMNAR,3400 MW POWER PLANT 31
Slide 33: Jharkhand
PANTHER JINDAL? JHARKHAND WRM & BRM, PATRATU
Slide 34: Jindal Shadeed, Oman
JINDAL SHADEED, OMAN 33
Slide 35: Investor relations contacts
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 0124-6612317 Mobile:+91 9038240683 Email: - gourav.sancheti@jin
Slide 36: Thank you
THANK YOU JINDALY
Jindal Steel & Power — Q1 FY2020 Earnings Presentation on 6ix