Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Merger or Acquisition (December 2020)
16 slides from Jindal Stainless's merger presentation, Dec 29, 2020
Slide 1: Jindal Stainless Limited exchange intimation letter
JINDAL 29 1h December, 2020 BSE Limited National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, 51h Floor, Rotunda Building, P J Towers, Plot no. C/1, G Block Dalal Street, Fort, Mumbai- 400 001 Bandra-Kurla Complex, Bandra(E), # 022-2272 3121,2037,2041, Mumbai-400051 3719
Slide 2: Merger of JSHL into JSL
Merger of JSHL into JSL Creating a Stainless Steel Conglomerate for Atmanirbhar Bharat
Slide 3: Disclaimer
DISCLAIMER This presentation (the “Presentation”), has been prepared by Jindal Stainless Limited (the "Company" which expression shall include its subsidiaries and associates, before and after giving effect to the Proposed Scheme), only for information purposes. It is not, is not intended to be, and
Slide 4: Overview
OVERVIEW JSL JSHL Jajpur, Odisha Hisar, Haryana Key Plant Location Raw Material Hub, Port Proximity Key Consumption Hub Proximity 1.1 MTPA Integrated facility along with 0.8 MTPA with Specialized Product backward integration (Ferro Chrome and Division (SPD) including Blade Steel, captive power plant
Slide 5: JSL Financial Performance
JSL FINANCIAL PERFORMANCE Consistent Y-o-Y volume ramp-up & deleveraging; Strong post COVID recovery in Q2FY21 Stainless steel Sales Volume (MT) Net Revenue (Rs. Cr) 12,585 12,320 10,785 Thousands 852 916 779 230 89 3,156 1,262 FY18 FY19 FY20 Q1 FY21 Q2 FY21 FY18 FY19 FY20 Q1 FY21 Q2 FY21 EBITDA (Rs
Slide 6: JSHL Financial Performance
JSHL FINANCIAL PERFORMANCE Steady performance; Strong post COVID recovery in Q2FY21 Stainless Steel Sales Volume (MT) Net Revenue (Rs.Cr) 9,259 8,956 8,340 Thousands 743 667 600 155 47 2,076 743 FY18 FY19 FY20 Q1 FY21 Q2 FY21 FY18 FY19 FY20 Q1 FY21 Q2 FY21 EBITDA (Rs. Cr) Margins (%) 12.3% 11.9% 10.
Slide 7: Proposed Consolidation
I PROPOSED CONSOLIDATION 6
Slide 8: Rationale
RATIONALE Creating one of the largest Stainless Steel manufacturers in the world ● JSL, as an Indian MNC, to enter the league of top 10 global SS producers ● Consolidation of SS business into one entity with a total capacity of 1.9MTPA Product Diversity with 360 degree reach and customer centricity
Slide 9: Rationale
RATIONALE Consolidation of complementing Strengths ● Consolidation of modern ‘state of the art’ technology with experienced talent and R&D ● Enhanced operational synergy: JSL’s port and raw material proximity, international finishing capabilities coupled with JSHL’s strategically located facility in
Slide 10: Joins Top Global Stainless Steel League
JOINS TOP 10 GLOBAL STAINLESS STEEL LEAGUE Enhanced Competitive Edge SS Indian Conglomerate Stainless Steel Capacities Revenue : ~ 20,000 Tsingshan TISCO POSCO Chengde EBITDA : > 2,000 Outokumpu Stronger Acerinox Financials : '000 tones Aperam Among Top 10 Net Debt < 4,750 Jindal Stainless Jiangsu D
Slide 11: Current Structure
CURRENT STRUCTURE Public Promoter Promoter Public 30.1% 69.9% 57.7% 42.3% 32.0% (Part of JSL promoter holding) JSL JSHL 100% Jindal Stainless PT Jindal Stainless 99.9% Steelways Ltd Indonesia 50% JSCMS # 50% 65.0% 73.4% Iberjindal S.L, JSL Lifestyle Spain Limited* Subsidiaries / Investments Subsidia
Slide 12: Proposed Structure
PROPOSED STRUCTURE Public Promoter 42.9% 57.1% ● Merger of JSHL into JSL JSL JSHL ● Swap ratio 1:1.95 PT Jindal Stainless 99.9% Indonesia 65% Subsidiaries /Investment ● Merger of JSL Lifestyle (mobility business), JSL Iberjindal S.L, Spain Media and JSCMS into JSL JSL Lifestyle (mobility), JSL Media
Slide 13: Major Events, Advisors
MAJOR EVENTS, ADVISORS APPOINTED DATE • April 1, 2020 • Board approval of the scheme of arrangement MAJOR EVENTS • SEBI approval EXPECTED COMPLETION • Shareholders and Creditors approvals IN H2 FY22 • NCLT approval • Implementation of Scheme • Transaction Advisors: Transaction Square LLP • Independe
Slide 14: Global SS Conglomerate for Atmanirbhar Bharat
GLOBAL SS CONGLOMERATE FOR ATMANIRBHAR BHARAT Consolidation of complementing Among top 10 global conglomerate strengths to drive future growth Swift leveraging of world class Single listed entity infrastructure Unlocking stakeholders’ value Diversified product portfolio Stronger financials & Higher
Slide 15: Contact Us
CONTACT US About Us: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless steel manufacturer. The Goutam Chakraborty / Shreya Sharma Company operates an integrated stainless steel plant at Jajpur, Odisha. The Jindal Sta
Slide 16: Thank You
I Thank You 15
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