Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Investor Presentation (August 2021)
37 slides from Jindal Steel's investor presentation, Aug 25, 2021
Slide 1: Exchange filing cover letter
August 25, 2021 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st 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 Mumbai-400051 cor
Slide 2: Investor Presentation August 2021
Investor Presentation August 2021
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Jindal Steel & Power Limited (the Company). The information contained in this presentation has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the information
Slide 4: Today's Presenters
Today’s Presenters Mr. Nishant Baranwal Mr. V.R. Sharma Mr. Hemant Kumar Executive Vice-President Managing Director Chief Financial Officer Head – Investor Relations Mr Vidya Rattan Sharma is a leading Hemant Kumar is an alumnus of Shri Ram Nishant Baranwal has over 15 years of Technocrat with almos
Slide 5: Section 1: Introducing Jindal Steel and Power Limited (JSPL)
Section 1: Introducing Jindal Steel and Power Limited (“JSPL”) 4
Slide 6: JSPL at a glance
JSPL at a glance US$4.5bn US$1,776mn FY21 Revenue FY21 EBITDA US$1.4bn US$615mn 1Q22 Revenue 1Q22 EBITDA c. 126% c. 27.0% EBITDA growth from FY20 Revenue growth from FY20 to FY21 to FY21 JSPL aims to be net debt free US$774mn 0.8x FY21 Net debt / FY21 Cash Balance EBITDA Net debt reduced by c. 32% f
Slide 7: JSPL – An Infrastructure Steel Company
JSPL – An Infrastructure Steel Company Making in India – Producing for the World JSPL is among the top 4 steel 1 of only 2 suppliers (sole producers as well as one of the private producer) of rails in lowest cost producers of India steel in the world Operates India’s most Captive iron ore, l
Slide 8: JSPL: Progress & Promise
JSPL: Progress & Promise Plants based in <1.5x net 8.6 MTPA iron ore rich Focus across debt / Ample cash (FY21/FY22) JSPL today Diversified capacity as region + iron ore geographies on EBITDA on balance (~USD product mix of August preemption + both steel and strong 774mn as of (long + flat) 2021 cok
Slide 9: Section 2: Industry Outlook
Section 2 Industry Outlook Section 2: Industry Outlook
Slide 10: Focused on Making for India's Growth
Focused on Making for India’s Growth Indian Steel Demand Forecast 140.0 30% 5.4% CAGR 4-5% CAGR 120.0 COVID-19 Impact 20% 7.9% 8.8% 8-9% (million tonnes) 100.0 3.9% 5.9% 3.1% 1.4% 10% 80.0 0% 60.0 (10%) 40.0 (17-20%) Recovering steel demand 20.0 driven by a multitude of (20%) 77.0 81.5 84.0 90.7 98.
Slide 11: Improving Realizations and Demand Triggering Expansions
Improving Realizations and Demand Triggering Expansions Scale-up in Standalone operations Long prices to catch up with HRC post festival season Primary rebar 12mm (USD/t) HRC prices (USD/t) Production Sales 7.5 1,000 7.3 6.3 900 6.1 5.6 5.4 800 4.0 3.8 700 600 500 400 5-Jan-18 5-Jan-19 5-Jan-20 5-Ja
Slide 12: Section 3: Key Credit Highlights
Section 3 Key Credit Highlights Section 3: Key Credit Highlights
Slide 13: JSPL: A continuously improving credit
JSPL: A continuously improving credit Raw material security Well-positioned to Stable cash flows Long track record in the Presence in resource capitalize on marquee Strengthened financials steel business and customer base as well considerable technical rich regions in the past few years
Slide 14: Strategically located integrated operations with raw material security
1 Strategically located integrated operations with raw material security Presence in resource rich regions with superior connectivity Pellet Plant Iron ore mine CPP Steel plant Port Key Assets Located in Vicinity of Critical Infrastructural Assets – Logistically well connected through ports, nationa
Slide 15: Favourable and flexible product mix to stay attuned to macro megatrends
2 Favourable and flexible product mix to stay attuned to macro megatrends Focus on export sales and right product mix JSPL is not only a leading supplier to infrastructure-linked sectors … but has also successfully pivoted to focus on increasing exports with leading steel demand domestically… when d
Slide 16: Well-positioned to capitalize on marquee customer base
3 Well-positioned to capitalize on marquee customer base Key supplier to multiple well-respected institutions across … yet no customer concentration in its sales mix ensures the country… the bargaining power remains with JSPL Export sales accounted for c. 34% Retail (FY21) 12% of the total revenues
Slide 17: Operational excellence translating into higher profitability
4 Operational excellence translating into higher profitability Superior EBITDA margin and optimal capacity utilization Demonstrating resilience in COVID period EBITDA/t(1) (USD/t) metric 400 JSPL 380 EBITDA margin (%) FY19 FY20 FY21 1Q21 1Q22 346 350 JSPL 21.7% 22.0% 39.2% 29.1% 43.6% 300 283 250 20
Slide 18: Robust financial profile and stable cash flows
5 Robust financial profile and stable cash flows JSPL Standalone financials have strengthened in the past few years Revenue1 (USD bn) EBITDA & EBITDA Margin (USD mn,%) Production EBITDA Margin Steel 5.59 MT 6.30 MT 7.51 MT 1.68 MT 2.01 MT 21.7% 22.0% 39.2% 29.1% 43.6% Record 1Q steel Best-in-class p
Slide 19: Prudent financial policy focused on proactive leverage management
6 Prudent financial policy focused on proactive leverage management and strong liquidity position Evolution of JSPL’s historical leverage over the years Consol Gross Debt/EBITDA Consol Net Debt/EBITDA Standalone net debt/ EBITDA JSPL aims for 14x 13.3x 13.3x <1.5x net debt / EBITDA across all cycles
Slide 20: Experienced board of directors and best in class management
7 Experienced board of directors and best in class management Naveen Jindal Shallu Jindal Chairman Director • Experience: >21 years • Qualification: MBA (University of Texas) Board of Directors Bhaskar Anil Wadhwa Shivani Wazir Kanika Agnihotri Chatterjee Independent Director Pasrich Independent Dir
Slide 21: Section 4: Future Plans
Section 4 Recent Developments and Future Plans Section 4: Future Plans
Slide 22: Capacity Ramp up plan: Steel & Pellets
Capacity Ramp up plan : Steel & Pellets Planned Expansion : Steel capacity up 66% and Pellet by 133% Angul Phase II (3 MTPA EAF) 15.9 Angul Phase II (3.3 MTPA BOF) Angul CTO 12.9 (1MTPA) 6.3 9.6 3.3 8.6 Crude 1.0 Steel Capacity (MTPA) 6.0 6.0 5.0 5.0 3.6 3.6 3.6 3.6 Capacity Expansion FY21[A] FY22[P
Slide 23: Angul Phase II: Disciplined capex approach over next 5 years
Angul Phase II : Disciplined capex approach over next 5 years Major projects’ timeline Expected FY22 FY23 FY24 & onwards COD Angul Pellet Plant #1: 6MTPA Sep 22 Angul Pellet Plant #2: 6MTPA Sep 23 Slurry Pipeline Sep 23 HSM Phase #1: 3MTPA Feb 23 HSM Phase #2 Expand to 5.5 MTPA Sep 23 Blast Furnace
Slide 24: Section 5: ESG Update
Section 5 ESG Update Section 5: ESG Update
Slide 25: Steadfast commitment to the community
Steadfast commitment to the community Environment Social Governance The company is in process of divestment of Jindal Lifesaving liquid Medical Oxygen continuously Maintain highest standards of corporate governance Power Limited, coal fired power plant supplied across the country through Cryog
Slide 26: Section 6: Roadmap for the Future
Section 6 Appendix Section 6: Roadmap for the Future
Slide 27: JSPL's key focus areas
JSPL’s key focus areas 01 03 05 02 04 High Return on Equity Make In India Strong Balance Sheet Strong FCF Generation Expand India’s <1.5x net debt / EBITDA & faster payback manufacturing prowess across all cycles and capitalize on strong + Sustainable Growth Steel Focus demand tailwind Strong Liquid
Slide 28: Appendix
Appendix
Slide 29: A simplified corporate structure for a pure play India steel story
A simplified corporate structure for a pure play India steel story Jindal Steel & Power Ltd USD 2,448.8 Mn Backward capex –mix of integration ensures project loan and 100.00% 100.00% raw material operating cash security Jindal Steel Odisha Jindal Steel & Power Limited (JSOL) (Mauritius) Ltd 61.02% 7
Slide 30: Jindal Power Limited divestment will help the company go green
Jindal Power Limited divestment will help the company go green Process for divestment of JPL is on track and committed towards transparent value unlocking for JSPL A competitive bidding process to The transparent bidding process The move is a part of the group's The competitive bid process for reali
Slide 31: India: Superior performance by technology-enabled plants
India: Superior performance by technology-enabled plants Plant (Location / Capacity) Angul Steel Plant (Odisha / 5.0 MTPA for SMS) Raigarh Steel Plant (Chhattisgarh / 3.6 MTPA for SMS) • Blast furnaces of 4554cu3 (3.2 MTPA) • Blast furnace (2.12 MTPA) • Largest 5 MTPA sinter plants • Coal-based spon
Slide 32: JSPL has the ability to sell products at various stages of production
JSPL has the ability to sell products at various stages of production Raw materials Intermediate inputs Processing End-products Washery Coal from mines Coal washery rejects Char/Flu gases Rotary kilns Power plant Electricity Pelletisation Wire Rod & Wire Rod & Rebar Pellets Sponge iron Bar Mill plan
Slide 33: JSPL has adeptly navigated the challenges brought on by COVID-19
JSPL has adeptly navigated the challenges brought on by the COVID-19 pandemic • JSPL’s product mix is more focused on longs than flats. With limited impact on the • One of the highest cash generating producers government spending committed to India’s infra in the Indian steel industry sector, JSPL h
Slide 34: Global Footprint - Providing raw material security
Global Footprint - Providing raw material security Africa • South Africa Anthracite coal mine, the Kiepersol Project, produces high quality Anthracite Coal (max.1.2 MTPA) The company’s operations are profitable. EBITDA positive even with severely reduced coal prices in international markets Ac
Slide 35: Global Footprint - Providing raw material security (cont'd)
Global Footprint - Providing raw material security (cont’d) Indonesia Thermal Coal Project IUP granted project with estimated thermal coal reserves of 300Mn tons and efficient stripping ratio of 1:2 Actively looking to divest Coking Coal Project Semi hard coking coal project with 57 Mn ton
Slide 36: Global Steel Industry Outlook
Global Steel Industry Outlook Fast-paced recovery around the world Russia steel industry is expected to recover to pre-pandemic levels by year- end 2022 Modest recovery in large 6 economies of Latin America is expected by 2021 For North American steel market, the capacity Other CIS utilization
Slide 37: Thank you!
Thank you! Thank you! 36
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