Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q4 FY20 Earnings Presentation
67 slides from Jindal Steel's earnings presentation, Jun 4, 2020
Slide 1: Jindal Steel & Power exchange intimation letter
“a JINDA STEEL & POWER June 04, 2020 BSE Ltd. ‘The National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor Ast 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
Slide 2: Jindal Steel and Power Ltd Investor Presentation 4Q FY20
Jindal Steel and Power Ltd Investor Presentation 4Q FY20 (May’ 20)
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 35-42 6 JSPL’s Response to COVID-19 43-48 7 Facilities at a glance 49-57 8 CSR Initiatives 58-62 9 Rewards & Recognitions
Slide 4: 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 3
Slide 5: 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 6: Key Milestones During Our Journey
KEY MILESTONES DURING OUR JOURNEY • Commissioning of 2 coke • Resumption of • Commissioned India’s largest and most modern 4554 cu.m. Blast oven batteries CGP – DRI Furnace at Angul. operations 2020 • Completed 3 MTPA Basic Oxygen Furnace at Angul. All facilities wrt 5 MTPA Steel Capacity at JSPL An
Slide 7: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS Naveen Jindal Shallu Jindal Chairman Non Executive Director • Experience: 22 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 Managing Director-JSPL Sudhanshu Saraf • Experience: >38 years. Director Transformation– JSPL • Experience: >30 years Deepak Sogani Bharat Rohra CFO-JSPL MD & CEO - JPL • Experience: >30 years • Experience: >35 years Rajeev Jain CFO - JPL • Experience: >23 year
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 Mar'17
SHAREHOLDING OF JSPL FROM MAR’17 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 30-Sep-19 31-Dec-19 31-Mar-20 Promoters 61.89% 61.89% 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% 60.52% 60.40% 60.40% 60.48% Institutional Investors* 19.57% 18.9
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) WRM 0.60 MTPA Capacity DRI 4.92 MTPAin deail RUBM 0.75 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA BF 5.33 MTPA Plate Mill 2.20 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 DRI 1.8 DRI 1.32 MTPA BF 3.2 MTPA MTPA WRM SMS Capacity in deail DRI 1.8 MTPA 0.60 3.6MTPA MTPA Plate Mill SMS 2.5 MTPA Pellet SMS 2.4 Tamnar Iron
Slide 15: Manifold Growth in Capacity in Last 6 Years
MANIFOLD GROWTH IN CAPACITY IN LAST 6 YEARS FY ‘14 FY ‘20 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: Growth on Track
GROWTH ON TRACK PRODUCTION IN FY19 PRODUCTION IN FY20 GROWTH STEEL – INDIA* 5.59 MT 6.30 MT 13% STEEL – OMAN 1.71 MT 1.87 MT 9% ROM- MOZAMBIQUE 1.71 MT 2.50 MT 47% (COKING COAL) PELLET 7.08 MTPA 7.28 MTPA 3% ROM-SOUTH AFRICA 0.34 MT 0.43 MT 27% (ANTHRACITE COAL) *incl. Pig Iron 15
Slide 17: JSPL Product Range
@ ram PANTHER Rail Track Rail: IRS 52, VIC 60(EIKE2), UIC 54E Crane Rails: CR 80, CR 100 Parallel Flange Beams & Columns Sections: U8, UC, NPB, WPB, IPE and HE series. Size range: 180m to 900mm Angles Sizes: 50mm to 250mm Wire Rods Grades: MS, MC & HC, EO, Boron and other Alloy Stee! Size range: 5.2
Slide 18: JSPL Product Range
NOVATIVE PRODUCTS Plates Fabricated Structures Cut & Bend Width: 1500mm to 4900mm Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use Star Coulums TMT Rebars Thickness: Smm to 150mm Sections: Depth: 350mm - 3000mm, Flange Width: 250mm - 1000mm, Length: 3 to 18 meters Co
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: Panther Jindal
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 – Coal sourced through – Mahanadi Coal Limited FSA market purchase and e- market purchase and e- (MCL) and South Eastern auct
Slide 25: PPA Arrangements
PPA ARRANGEMENTS PERIOD QUANTUM PROJECT BUYER TYPE FROM TO (MW) TAMNAR II Tamil Nadu Long Term Feb-14 Sep-28 400 (PHASE 1) 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 operation 60 (PHASE 1) Chhattisgarh of
Slide 26: JPL Financials
JPL FINANCIALS Net Sales Generation Cash Profit Particulars (Rs. Cr.) (MU) (Rs. Cr.) Year 2019-20 3758 9583 961 Year 2018-19 3858 10,396 816 Year 2017-18 4,059 10,905 778 Year 2016-17 3,119 9,176 656 Year 2015-16 2,997 9,542 706 Year 2014-15 3,228 10636 523 Year 2013-14 2,457 8282 1,386 Year 2012-13
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 DRI , 2.4 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant MOZAMBIQUE, AFRICA 5 MTPA coal mine in Mozambique’s coal-rich Moatize region SOUTH AFRICA, AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthracite coal, 60.
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 28
Slide 30: Jindal Shadeed Iron & Steel, Oman
JINDAL SHADEED IRON & STEEL, OMAN Marching towards becoming a Fully Integrated Steel Plant 1.8 DRI 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 Products : TMT Rebars, HBI, Blooms & Bil
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 : 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 Logistics : Port Kembla - Less than 20 kms 33
Slide 35: Other Iron Ore Assets
OTHER IRON ORE ASSETS Namibia Melmoth (South Africa) Cameroon Resources 986 million tonnes 1,155 million tonnes 1,301 million tonnes Iron ore 70.9% 68.4% 69.2% content Yield 27.0% 25.2% 31.5% JSPML stake 85% 74% 90% Development Scoping and exploration Pre feasibility stud
Slide 36: Financial & Operational
FINANCIAL & OPERATIONAL
Slide 37: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q3 FY 20 Q4 FY 20 PARAMETER Q4 FY 20 Q4 FY 19 10,203 9,674 Gross Revenue* 9,674 11,304 9,300 8,835 Net Revenue 8,835 10,159 1,820 2,220 EBITDA 2,220 1,845 20% 25% EBITDA % 25% 18% 1,018 757 Depreciation + Amortization 757 2373 1,002 1,008 Interest 1,0
Slide 38: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q3 FY 20 Q4 FY 20 PARAMETER Q4 FY 20 Q4 FY 19 7,542 6,767 Gross Revenue* 6,767 8,544 6,640 5,930 Net Revenue 5,930 7,402 1,352 1,562 EBITDA 1,562 1,440 20% 26% EBITDA % 26% 19% 570 568 Depreciation + Amortization 568 576 634 623 Interest 623 980 148 372
Slide 39: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q3 FY 20 Q4 FY 20 PARAMETER Q4 FY 20 Q4 FY 19 784 913 Turnover 913 999 257 333 EBITDA 333 267 33% 36% EBITDA % 36% 27% 292 334 Depreciation + Amortization 334 324 219 208 Interest 208 236 (111) (188) PBT (188) (37) (83) (134) PAT (134) 11 181 265 Cash Profit 265 36
Slide 40: Revenue & EBITDA in FY20
REVENUE & EBITDA IN FY20 (Figures in Rs. Crores) REVENUE (Rs. In Cr) Standalone Consolidated 39,388 36,944 27,844 22,706 18,350 19,943 20,070 19,626 18,632 27,730 26,228 17,523 15,114 14,691 13,687 15,502 13,518 12,852 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 EBIDTA (Rs. In Cr) (Figures
Slide 41: Operational Performance
OPERATIONAL PERFORMANCE Consolidated Steel Production* Consolidated Steel Sales* 0.44 0.39 0.41 0.46 0.41 0.57 0.47 0.36 0.46 0.43 0.38 0.46 0.50 0.57 0.48 0.42 0.45 0.54 0.42 1.57 0.42 1.51 0.39 0.43 1.58 1.52 0.39 0.43 0.36 1.22 1.48 1.32 0.35 0.28 0.31 0.32 0.34 1.19 1.27 0.33 0.27 1.07 1.00 0.91
Slide 42: JSPL Consolidated Debt Bridge
JSPL CONSOLIDATED DEBT BRIDGE 50000 DEBT BRIDGE FY20 (Rs. In Cr.) 45000 3894 40000 1161 485 35000 30000 25000 20000 39137 35919 15000 10000 5000 0 Net Debt as on 1st April'19 Debt reduction Fx Impact(Addition due to FX ) Movement in Cash & Cash Net Debt as on 31st Mar'20 Equivalents In Opening Debt
Slide 43: Debt Profile Entity-wise FY20
DEBT PROFILE ENTITY-WISE FY20 Debt Rs.15,301 Crs Jindal Steel & Power Ltd. The listed operating entity with all steel plants, pellet plant and captive power plants in India Jindal Steel & Power (Mauritius) Jindal Power Ltd. Ltd. Debt Rs.7,235 Crs Debt Rs. 5,767 Crs Independent power plants in India
Slide 44: JSPL's Response to COVID-19
JSPL Contributed Rs. 25 crores to JSPL’s JSPL has committed to supply free the PM Cares Fund oxygen if any hospital in the states of Chhattisgarh and Odisha is short of response Each JSPL Employee has contributed to Oxygen the PM cares Fund to COVID- JSPL has upgraded its hospitals to fight the JSPL
Slide 45: JSPL's Three Phase Response to the Crisis - COVID-19
JSPL’S THREE PHASE RESPONSE TO THE CRISIS – COVID -19 JSPL adopted a three phase response to battle COVID-19 – Respond, Return & Reform. The 3 phases kick in one by one as the COVID-19 curve progresses across the Nation with ‘Respond’ being JSPL’s immediate reaction to the outbreak; ‘Return’, being
Slide 46: JSPL's Immediate Response to COVID-19
JSPL’S IMMEDIATE RESPONSE TO COVID-19 1. Respond 2. Return 3. Reform 16 March 2020 01 April 2020 Health Facilities up gradation Launched Connecting with Local Organization-Wide communities Engagement Plans Portal for COVID -19 updates 20 March 2020 with series of Work from Home Webinars 07 Mar
Slide 47: Battling the Lockdown - The People's Perspective
BATTLING THE LOCKDOWN – THE PEOPLE’S PERSPECTIVE 1. Respond 2. Return 3. Reform In the second phase, JSPL endeavored to recognize the people's perspective and adopted measures to ensure their holistic well-being, thereby ensuring business continuity during and after lockdown. JSPL takes cognizance o
Slide 48: Reform: Way to New Normal
REFORM : WAY TO NEW NORMAL 1. Respond 2. Return 3. Reform The key to winning in the new realm rests on the resilience and agility we build in the organization today. The crisis is an ultimate test of our strength and JSPL’s success would depend on our ability to leverage the lessons of today and ref
Slide 49: COVID Response: JSPL Remains Committed to Serve the Nation
COVID 19 RESPONSE: JSPL REMAINS COMMITTED TO SERVE THE NATION
Slide 50: Jindal?
JINDAL? 49
Slide 51: 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 50
Slide 52: India
INDIA
Slide 53: Chhattisgarh
CHHATTISGARH Integrated Steel Plant,Raigarh Steel Fabrication Plant, Punjipatra Heavy Machinery Division, Raipur Tamnar,3400 MW Power plant 52
Slide 54: Odisha
ODISHA Integrated Steel Plant , Angul Pellet Plant, Barbil 53
Slide 55: Jharkhand
JHARKHAND WRM & BRM, Patratu 54
Slide 56: Oman
Oman
Slide 57: Jindal Shadeed, Oman
JINDAL SHADEED, OMAN 56
Slide 58: Making Sustainability a Focus Priority
MAKING SUSTAINABILITY A FOCUS PRIORITY 57
Slide 59: 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 58
Slide 60: Sustainable CSR
SUSTAINABLE CSR SUSTAINABLE DRINKING WATER & LIVELIHOOD & HEALTH & NUTRITION EDUCATION SKILL BUILDING SANITATION WOMEN EMPOWERMENT 2.7 Lakh+ 22 Lakh+ 78000+ 1 Lakh + 10000+ People provided Adolescent girls and People provided with Students empowered with vocational women benefitted from safe and cle
Slide 61: Sustainable CSR
SUSTAINABLE CSR ENVIRONMENT & COMMUNITY SPORTS ART & CULTURE SOCIAL INCLUSION AGRICULTURE INFRASTRUCTURE 30 Lakh+ 11000+ 1500+ 12 Lakh+ 150+ Performing artists Sports talents trained and traditional People provided/ Saplings Planted/ 10 Parentless children and developed for artisans benefitted with
Slide 62: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS 61
Slide 63: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES TOOL BOX MEETINGS SAFETY AWARDS/REWARDS MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS 62
Slide 64: 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 2019 • JSPL was awarded “Platinum Award “ for Health & Safety Excellence at the Apex India Excellence Award 2018-19 • JSP
Slide 65: 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 : +91 124-6612317 Mobile:+91 9038240683 Email: - gourav.sacheti@jind
Slide 66: 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 67: Thank You!
To the Taskforce guarding INDIA against the Corona Virus Pandemic Thank You !