Nmdc Limited · NSE:NMDC

Nmdc — Non-Deal Roadshow (May 2019)

24 slides from Nmdc's roadshow presentation, May 7, 2019

  1. Slide 1: Cover letter to stock exchanges

    1:f' ~ tr d1" R=t ~?.s NMDC Limited (1fRn ~ Cfi1 '3'W'I) (A GOVT. OF INDIA ENTERPRISE) ~ ct>i4\<'14 : ~ ~', 10-3-311/1:!, ~ ~. ~'ten, ~Gxi~IG - 500 028. Regd. Office: 'Khanij Bhavan' 10-3-311/A, Castle Hills, Masab Tank, Hyderabad - 500 028. NMDC ~~~I Corporate Identity Number : L 13100AP1958 GOI 00

  2. Slide 2: NMDC Limited - May 2019 (Singapore)

    NMDC TIMITED (A Govt. of India Enterprise) May 2019 (Singapore) 7 a

  3. Slide 3: Disclaimer

    • This presentation is issued by NMDC Limited (the "Company") for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation or induc

  4. Slide 4: hea

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  5. Slide 5: Shareholding

    Market Cap: US$ 4.6 bn 0.31 3.90 Key Shareholders Other Than Gol as on % Shareholding 30.03.2019 LIFE INSURANCE CORPORATION OF 12.9% INDIA LICI NEW ENDOWMENT PLUS-GROWTH 2.03 % FUND ADITYA BIRLA SUN LIFE TRUSTEE 1.17% PRIVATE LIMITED EDGBASTON ASIAN EQUITY TRUST 0.79 % VANGUARD EMERGING MARKETS 0.42

  6. Slide 6: Production and location of principal mining facilities

    ·in FY 2013-14, NMDC's production exceeded 30.00 MT for the first time since inception. ··~ Produced 34 MT in 2016-17 and 35.5 MT in FY 2017-18 _ j Location of NMDC's principal mining facilities Historic production at key mining locations -c: 100% 0 :;:; 34.0 35.6 32.5 (.) ::i 80% "O ... 0 Q.. 60% -

  7. Slide 7: Key domestic and international customers

    Key domestic customers Key international customers ~ j~... CGunits .. ~ "'"" I r r ~ I J Gujarat '5"- China Essar ..,._ - - - r South J apan Chhattisgarh Korea JSWISPAT I ..,. __ _ ~ ,.._,, Welspun Maharashtra1 - - - - _..,. RINL ./ • Japanese steel mills (LT contract) JSW Steel • - - - - - """ Andh

  8. Slide 8: Operating cost and EBITDA margin versus peers

    Operating C1 cost per ton (USO) EBITDA Margins (%) 25 100 90 20 80 70 § 15 60 r-- ............... p Cf) 10 * 5040 ~ 30 61 12.7 5 20 10 0 0 BHP Rio Tinto NMDC Vale FMG BHP Rio Tinto NMDC Vale FMG • Access to relatively large talent pool in India • Stability I predictability of certain expenses e.g. W

  9. Slide 9: Revenue, PAT, capex and net cash

    Revenue (US$mm) I PAT (US$mm) 2,500 1,000 2,000 r 60% 0% 1659.00 50% 1,500 32.9% 37.5% 29.3% - 40% 500 1,000 30% 20% 500 10% 0 0 0% 2016-17 2016-17 2017-18 2018-19 (up to 2017-18 2018-19 (up to Dec'18) - PAT % Margin Dec'18) Capital expenditure (US$mm) Net Cash (US$mm) 600 495.00 4,000 500 400 3,000

  10. Slide 10: Iron Ore Reserves and Resources as on 1.4.2018

    Iron Ore Reserves and Resources of NMDC Limited as on 1.4.2018 as per UNFC (Cut off Grade -45% Fe) Grand Total Total Reserves Resources Iron Ore Tenement (Reserve+ Resource) ML Valid up to Complex Q ty Fe% Qty Fe % Qty Fe % Chhattisgarh Deposit 5 253.08 67.75 99.42 58.02 352.50 65.01 31.03.2020 Bach

  11. Slide 11: Mining and evacuation capacity

    Mining Capacity Evacuation Capacity (MTPA) (MTPA) 28 40 Railways Bailadila Sector (Existing Mines) 29 38 3 3 Road 8 8 Essar' s Slurry Pipeline Bailadila Sector (New Mines) 15 15 NMDC' s Slurry Pipeline Donimalai Sector 14 14 14 14 Road & Railways Grand total 43 67 53 80 NMDC has planned for sufficie

  12. Slide 12: Dividend policy and payout

    180 7 161 160 6 140 120 5 100 *4 80 '"d .......... Q) 60 51 ~ 3 44 5.52 40 15 2 20 6 7 0 1 2015-16 2016-17 2017-18 0 • as% of PAT as % of Networth BHP Rio Tinto NMDC FMG As per Government of India Guidelines on dividend, every Government company shall pay minimum annual dividend@ 30°/o of PAT or 5°/

  13. Slide 13: CSR and community development

    / ---· -- / I I I I \ \ . I I I I I I \ \ Infrastructu re \ \ I I Skill / Developme nt \ Developme nt ...,,,,.__ ...........- ----- Livelihood & The Company is having Learning high social acceptanc e in the area where its mining units are located. • NMDC's CSR goals aim at emancipation, improvement

  14. Slide 14: Committees and governance

    COMMITTE ES: i) AUDIT COMMITTE E: Majority Members are Independen t Directors and also Chaired by an Independen t Director ii) NOMINATI ON & REMUNERA TION COMMITTE E - Consist of three Independen t Directors with Director Personnel as a special invitee iii) CSR & SUSTAINAB ILITY COMMITTE E - Headed

  15. Slide 15: Industry Outlook

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  16. Slide 16: Mining lease allocation under MMDR Act

    ~ All Mining allocation to be done through auction route. ~ NMDC (being a Government company), under section 17A(2A) of MMDR Act, 2015 1s allowed acquire mines without auction . ~ For private miners renewal of leases expiring by 2020 is on ly through auction route. ~ The Act provides for extension o

  17. Slide 17: NMDC positioned to capture iron and steel opportunities

    > NMDC being largest iron ore player with integrated mining solutions is better positioned to take advantage of opportunities in iron and steel industry which is expected to grow with CAGR of 7.4°/o. > Targeted Increase in steel capacity by more than double at .300 mtpa requires raw material of abou

  18. Slide 18: National Mineral Policy 2019

    ~ NMP 2019 states that "Efforts shall be made to grant mining the status of industry". ~ NMP, 2019 reinforces the core competency of NMDC in exploration as it provides edge over other mining companies through Right of First Refusal at the time of auction or seamless transition from RP to PL to ML or

  19. Slide 19: Industry Outlook

  20. Slide 20: Indian Steel

    INDI AN STEEL (FY~18) • India's capacity of crude steel increase d from 22 MTPA in FY'92 to 122 MTPA in FY'16 . CAGR of 5.1 % till 2000 & CAGR of 8.3% from 2000 to 2016. From 2010 to 2016, capacity increase d from 75to125 MTPA @8.8% CAGR. • Crude steel product ion capacity reached 137.98 MT, a growt

  21. Slide 21: Large steel user with low steel penetration

    One of the Largest Users of Steel but Low Steel Penetration Levels(1 ) 1----------------- • 1 ' J • !' 499 II ! t 737 I I I ' 89 97 64 56 41 41 36 26. 25 I :' South Germany Russia Turkey Mexico Italy India China USA Japan Korea '-------- ---------- Apparent Steel Use( 2 ) 2017 (mn tonnes) • Per Capi

  22. Slide 22: India 2nd largest steel producer

    (mn tonnes) 831 38 34 21 China J. Japan India USA Russia s. Korea Germany Turkey Brazil Ukraine - ---- - ----------~ 2nd largest as per 2018 data Notes:.1. World Steel Association. 2. Apparent steel use is defined as sum of net industry shipments within a given country, plus its imports minus export

  23. Slide 23: India steel consumption expected to grow at 7.4% CAGR

    India Steel Consumption is Expected to Grow at a CAGR of --7.4°/o -over the next 12 years (mn tonnes) \ 230 73.5 73.9 77.0 84.0 91.0 71.0 82.0 FY12 FY13 FY14 FYlS FY16 FY17 FY18 FY31 Consumption in terms of Crude Steel: 255 MTPA Notes:.1. World Steel Association. 2. Apparent steel use is defined as

  24. Slide 24: Thank You

NMDC — Non-Deal Roadshow (May 2019) on 6ix