Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY19 Earnings Presentation
61 slides from Jindal Steel's earnings presentation, Feb 8, 2019
Slide 1: Exchange filing cover letter
) INDAY STEEL &POWER February 8, 2019 BSE Lim ited N ation al Stock Exch ange of India Limited Corporate Relationship Department, Exchange Plaza, 5111 Floor, 1s1Floor, N ew Trading Ring, Plot N o. C/l, G Block Rohmda Building, P J Towers, Bandra-Kurla Com plex, Bandra (E), Dalal Sb:eet, Fort, Mumbai
Slide 2: Jindal Steel and Power Ltd Investor Presentation 3Q FY19
Jindal Steel and Power Ltd Investor Presentation 3Q FY19 (Jan’ 19) 1
Slide 3: Table of Contents
Table of Contents S No. Content Slides 1 The Company 3-10 2 Overview & Business Segments 11-22 3 Power Business 22-28 4 Global Ventures 29-37 5 Consolidated Performance 38-40 6 Facilities at a glance 41-51 7 CSR Initiatives 52-56 8 Rewards & Recognitions 57 9 Contact Us 58 2
Slide 4: Jindal Steel & Power Limited - Building the Nation of Our Dreams
Jindal Steel & Power Limited Building the Nation of Our Dreams Aerial View of Raigarh Plant 3
Slide 5: 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 4
Slide 6: Key Milestones during our journey
Key Milestones during our journey • First ever Equity Raise • Commissioned India’s largest and most modern 4554 cu.m. Blast Furnace at Angul. • Completed 3 MTPA Basic Oxygen Furnace at Angul. All facilities 2018 wrt 5 MTPA Steel Capacity at JSPL Angul is completed. • Commissioned coal gasification p
Slide 7: 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 8: Experienced Board Of Directors
Experienced Board Of Directors Naveen Jindal Shallu Jindal Chairman Non Executive Director • Experience: 21 years • Qualification: MBA (University of Texas) R.V. Shahi Arun Kumar Purwar Arun Kumar Hardip Singh Wirk Independent Director Independent Director Independent Director Independent Director •
Slide 9: Best in Class Management
…& Best in Class Management N.A. Ansari Sudhanshu Saraf Joint Managing Director CEO – Steel • Experience: >38 years. • Experience: >30 years Deepak Sogani Bharat Rohra CFO MD & CEO - Power • Experience: >30 years • Experience: >30 years Ashish Kumar Rajeev Jain Head – Mines & Minerals CFO - JPL • Ex
Slide 10: 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 11: Shareholding of JSPL from FY16
Shareholding of JSPL from FY16 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 Promoters 61.89% 61.89% 61.89% 61.89% 61.89% 61.89% 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% Institutional Investors* 21.08% 21.33% 20.00% 19.39% 19
Slide 12: Business Segments
Business Segments Steel Power Global Ventures Current Capacities – Domestic & Global 8.6 MTPA Steel* 2.4 MTPA IPP – 3400MW** 3.11 MTPA* Iron ore Steel, Coal & CPP – 1634 MW 9 MTPA* Pellet Plant Iron Ore Mines *Domestic 11 **1000 MW Divestment announced
Slide 13: 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 14: Steel Capacities across Life Cycle
Steel Capacities across Life Cycle Iron Making Liquid Steel Finished Steel (9.95 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 1.50 MTPA BRM 3.80 MTPA 13
Slide 15: 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 HBI 1.5 MTPA DRI 1.32 BF 3.2 MTPA MTPA WRM Iron Ore SMS Capacity in deail DRI 1.8 MTPA 0.60 3.11 3.6MTPA MTPA MTPA NEOF 2.5 Plate Mill MTPA Pellet
Slide 16: Manifold Growth in the Last 5 Years
Manifold Growth in the Last 5 Years FY ‘14 FY ‘18 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 approximately 3x 15
Slide 17: Potential for BIG LEAP
…… potential for BIG LEAP Upside FY18 Capacity Production in FY18 Potential Steel – India 8.6 MTPA 4.02 MTPA 114% Capacity Steel – Oman 2.0 MTPA 1.67 MTPA 20% Capacity Independent 3,400 MW 1237 MW 174% Power Capacity Pellet 9.0 MTPA 6.86 MTPA 31% Capacity 16
Slide 18: JSPL Product Range
oD rracven en Rail Parallel Flange Beams & Columns Channel Track Rail: IRS 52, UIC 60(EIKE2), UIC S4E Sections: UB, UC, NPB, WPB, IPE and HE series, Sizes: 75mm to 400mm Crane Rails: CR 80, CR 100 Size range: 180m to 900mm PARRA ADD DDD DDD DD DA SIZ TIC PAA LS AAAAAAAAAAAAAAAANANN NADY ddddddhddddd
Slide 19: JSPL Product Range
INNOVATIVE PRODUCTS Fabricated Structures Cut & Bend Plates Width: 1500mm to 4900mm Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use Thickness: 5mm to 150mm Star Coulums TMT Rebars Sections: Depth: 350mm - 3000mm, Flange Width: 250mm - 1000mm, Length: 3 to 18 meters
Slide 20: 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 21: Extensive Sales and Distribution Network
Extensive Sales and Distribution Network Plants Distributors Stockyards Pan India presence with multiple customer touch points 20
Slide 22: JSPL Standalone Key Financials
JSPL Standalone Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 6,745 6,849 4,272 -2% 58% EBITDA 1,480 1,452 921 2% 61% EBITDA % 22% 21% 22% Depreciation + Amortization 572 583 465 -2% 23% Interest 635 676 594 -6% 7% PBT
Slide 23: Power Business
oS PANTHER JINDAL
Slide 24: 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)
Slide 25: 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) 24
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 – market Mahanadi Coal Limited (MCL) Coal sourced through – market FSA purchase and e-auction and South Eastern Coalfields pu
Slide 27: 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 60 (Phase 1) Afte
Slide 28: JPL Key Financials
JPL Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 1,004 911 1,172 10% -14% EBITDA 273 302 356 -10% -23% EBITDA % 27% 33% 30% Depreciation + Amortization 334 333 381 -- -12% Interest 219 222 244 -1% -10% PBT (202) (183)
Slide 29: JPL Financials
JPL Financials Net Sales PAT Generation Cash Profit Particulars (Rs. Cr.) (Rs. Cr.) (MU) (Rs. Cr.) Year 2017-18 4,081 (673) 10,905 778 Year 2016-17 3,119 (668) 9,176 656 Year 2015-16 2,997 (766) 9,542 706 Year 2014-15 3,228 (171) 10636 523 Year 2013-14 2,457 1,107 8282 1,386 Year 2012-13 2,510 1,113
Slide 30: Global Ventures
Corporate Office, Jindal Africa 29
Slide 31: Summary of International Operations
Summary of International Operations Shadeed, Oman 1.5 MT HBI, 2.4 MT SMS Plant & 1.4 MT Rebar Mill – an Integrated Steel Plant Mozambique, Africa Developing 3MTPA coal mine in Mozambique’s coal-rich Moatize region South Africa, Africa Australia 60.38% stake in Wollongong JSPL’s Kiepersol Col
Slide 32: 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 Integrated Steel Thermal/ Coking Coal Coking Coal Anthracite Coal plant 31
Slide 33: Jindal Shadeed Iron & Steel, Oman
Jindal Shadeed Iron & Steel, Oman Marching towards becoming a Fully Integrated Steel Plant 1.5 HBI 2.4 MTPA SMS 1.4 MTPA Rolling Mill 32
Slide 34: 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 (category 1.5MTPA) Products : TMT Rebars
Slide 35: 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 34
Slide 36: 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: 132 MT Products : Semi Hard coking coal , High Grade Thermal Coal Mining Capacity : 3 MTPA 35
Slide 37: Wollongong Coal Ltd., Australia
Wollongong Coal Ltd., Australia Two Mines with Unique unmatched location & strategic advantages Location: Russell Vale & Wongawilli (Wollongong - 80 kms. South of Sydney) Reserves : 125 MT Products : High Quality Coking Coal Mining Capacity : Targeting 2 MTPA Logistics : Port Kembla - Less
Slide 38: Australia - Salient Features
Australia - Salient Features Unique Geographic Location • Wollongong (80 kms. South of Sydney) • Experienced mining community available • Port Kembla: Less than 20 kms with sufficient coal handling and Cape size capacity • Easy and reliable connectivity through Rail and Road Unique unmatched locat
Slide 39: Operational Performance
Operational Performance Consolidated Steel Production Consolidated Steel Sales 1.19 1.16 1.15 1.30 1.27 1.32 1.39 1.72 1.68 1.68 1.11 1.08 1.16 1.31 1.15 1.27 1.36 1.66 1.75 1.65 1.60 1.60 0.46 0.43 0.38 0.46 0.48 0.42 0.47 0.45 1.40 1.40 1.20 0.42 1.20 0.42 0.39 0.43 0.39 0.36 0.43 1.00 0.35 0.28 0
Slide 40: JSPL Consolidated Key Financials
JSPL Consolidated Key Financials (Figures in Rs. Crores) Parameter(in Crores of INR) Q3 FY 2018-19 Q2 FY 2018-19 Q3 FY 2017-18 %QoQ %YoY Turnover 9,580 9,982 6,994 -4% 37% EBITDA 2,077 2,207 1,607 -6% 29% EBITDA % 22% 22% 23% Depreciation + Amortization 1,036 1,031 963 -- 8% Interest 1,042 1,086 967
Slide 41: JSPL Consolidated Financials
JSPL Consolidated Financials Net Sales EBITDA EBITDA Interest PAT Particulars (Rs. Cr.) (Rs. Cr.) % (Rs. Cr.) (Rs. Cr.) Year 2017-18 27,841 6,469 23% 3,866 (1,624) Year 2016-17 22,696 4,709 21% 3,441 (2,540) Year 2015-16 20,368 3,437 17% 3,254 (3,086) Year 2014-15 19,359 5,440 28% 2,606 (1,455) Year
Slide 42: Facilities at a glance
oS PANTHER JINDAL Facilities at a glance
Slide 43: 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 42
Slide 44: India
INDIA
Slide 45: Chhattisgarh State
JINDAL Chhattisgarh State
Slide 46: Raigarh, Raipur, Punjipatra, Tamnar
Raigarh Punjipatra Raipur Tamnar,3400 MW Power plant 45
Slide 47: Odisha State
Odisha State
Slide 48: JSPL, Angul; Pellet Plant, Barbil
JSPL, Angul Pellet Plant, Barbil 47
Slide 49: Jharkhand State
JINDAL? Jharkhand State
Slide 50: JSPL, Patratu
JSPL, Patratu 49
Slide 51: Oman
Oman
Slide 52: Jindal Shadeed, Oman
Jindal Shadeed, Oman 51
Slide 53: Making Sustainability A Focus Priority
Making Sustainability A Focus Priority 52
Slide 54: A Responsible Corporate Citizen - Pillars of CSR
A Responsible Corporate Citizen 9 PILLARS OF CSR 53
Slide 55: A Responsible Corporate Citizen
A Responsible Corporate Citizen As of 31st March’2016 54
Slide 56: Health & Safety Best Practices
Health & Safety Best Practices SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS 55
Slide 57: Health & Safety Best Practices
Health & Safety Best Practices TOOL BOX MEETINGS SAFETY AWARDS/REWARDS MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS 56
Slide 58: Recent Awards & Recognitions
Recent Awards & Recognitions • JSPL was awarded “Odisha Excellence Award, 2018”, for its sustainable social development in the state. • Jindal Panther was awarded “Iconic Brand of the Year” by Economic Times • JSPL has been ranked by Institutional Investor Magazine in 2018: #1 in Asia in Best IR P
Slide 59: For any information please contact
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com 58
Slide 60: Disclaimer
DISCLAIMER This presentation may contain certain forward looking statements concerning 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 forward looking statements. T
Slide 61: Thank You
THANK YOU 60