Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Investor Presentation (January 2022)
32 slides from Jindal Steel's investor presentation, Dec 31, 2021
Slide 1: Exchange filing cover letter
December 31, 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 c
Slide 2: Investor Presentation January 2022
Investor Presentation January 2022
Slide 3: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Steel 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 such fo
Slide 4: Section 1: Introducing Jindal Steel and Power
Section 1: Introducing Jindal Steel and Power (“JSP”) 3
Slide 5: JSP at a glance
JSP at a glance US$4.5bn FY21 Revenue US$1,758mn FY21 EBITDA(1) US$3.2bn US$1,218mn 1H22 Revenue 1H22 EBITDA Achieved 0.5x c. 126% c. 27% 1H22 Net debt / LTM EBITDA growth from FY20 to Revenue growth from FY20 to FY21 FY21 EBITDA already US$766mn JSP aims to be net 0.9x FY21 Net debt / FY21 Cash Bal
Slide 6: JSP – An Infrastructure Steel Company
JSP – An Infrastructure Steel Company Making in India – Producing for the World ◼ Fourth largest company in ▪ Goal of reducing carbon the iron and steel sector in India in emissions below terms of crude steel capacity in FY 2TCO2/TCS by 2030 2021 ◼ 1 of only 2 suppliers (sole private producer) of ra
Slide 7: JSP: Progress & Promise
JSP: Progress & Promise JSP today 9.6 MTPA Plants based in Diversified Focus across Ample cash capacity as iron ore rich product mix geographies on balance of Nov’21 region + iron ore (long + flat) both steel and (~USD preemption + power 500mn as of coking coal 50% 1H22) hedged Raw Product Liquidity
Slide 8: Section 2: Industry Outlook
Section 2 Industry Outlook Section 2: Industry Outlook
Slide 9: Focused on Leading India's Growth Story
Focused on Leading India’s Growth Story Indian Steel Demand Forecast 160.0 30% 3.0% CAGR 6-6.5% CAGR 140.0 15-17% 20% 120.0 7.9% 8.8% (million tonnes) 4.6% 6-6.5% 3.1% 1.4% 10% 100.0 80.0 -6.0% 0% 60.0 (10%) 40.0 (20%) 20.0 84.0 90.7 98.7 100.2 94.1 105.4 112.3 135.0 0.0 (30%) FY17 FY18 FY19 FY20 FY
Slide 10: Improving Realizations and Demand Triggering Expansions
Improving Realizations and Demand Triggering Expansions Scale-up in Standalone operations Resilience in sales mix for JSP Production Sales Export Domestic (MT) 7.5 7.3 First Monsoon Second Monsoon 8,00,000 Wave rains Wave rains 6.3 6.1 5.6 5.4 7,00,000 6,00,000 62% 60% 37% 56% 50% 58% 5,00,000 61% 5
Slide 11: Section 3: Key Credit Highlights
Section 3 Key Credit Highlights Section 3: Key Credit Highlights
Slide 12: JSP: A continuously improving credit
JSP: A continuously improving credit ▪ Raw material security ▪ Well-positioned to ▪ Stable cash flows ▪ Long track record in the ▪ Presence in resource rich capitalize on marquee ▪ Strengthened financials in steel business and customer base as well as considerable technical regions the past few year
Slide 13: 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 14: Favourable and flexible product mix
2 Favourable and flexible product mix to stay attuned to macro megatrends Focus on export sales and right product mix JSP 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 do
Slide 15: 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 JSP Export sales accounted for c. 35% Retail (FY21) 12% of the total revenues f
Slide 16: 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 EBITDA margin (%) FY19 FY20 FY21 1H21 1H22 JSP 22% 22% 39% 30% 38% 350 326 300 241 250 200 165 150 150 128 100 50
Slide 17: Robust financial profile and stable cash flows
5 Robust financial profile and stable cash flows JSP Standalone financials have strengthened in the past few years Revenue1 (USD bn) EBITDA2 & EBITDA Margin (USD mn,%) Production EBITDA Margin Steel 5.59 MT 6.30 MT 7.51 MT 3.50 MT 3.94 MT 22% 22% 39% 30% 38% Best-in-class profitability 1,758 4.5 3.7
Slide 18: Prudent financial policy and strong liquidity position
6 Prudent financial policy focused on proactive leverage management and strong liquidity position Evolution of JSP’s historical leverage over the years Consol Gross Debt/EBITDA Consol Net Debt/EBITDA Standalone net debt/ EBITDA 6.0x 5.4x Prepayment of INR 90cr (USD12.75mn) in Oct 2020. 5.0x 4.7x 5.3
Slide 19: 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 • President - Flag • ex-Chairperson of Foundation of India the National Bal • Qualification: MBA Bhavan (University of • Founder President Texas) of Young FICCI Ladies Organisation Board of Di
Slide 20: Section 4: Future Plans
Section 4 Recent Developments and Future Plans Section 4: Future Plans
Slide 21: 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) 1MTPA 12.9 6.3 9.6 3.3 8.6 Crude Steel Capacity (MTPA) 6.0 6.0 6.0 5.0 3.6 3.6 3.6 3.6 Capacity Expansion FY21[A] FY22[P] FY24[P] FY25[P
Slide 22: Angul Phase II: Disciplined capex approach
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 23: Section 5: ESG Update
Section 5 ESG Update Section 5: ESG Update
Slide 24: Steadfast commitment to the community
Steadfast commitment to the community Environment Social Governance ▪ Adopted goal of reducing carbon emissions ▪ Lifesaving liquid Medical Oxygen continuously ▪ Maintain highest standards of corporate below 2TCO2/TCS by 2030 supplied across the country through Cryogenic governance with 5 out of 9 b
Slide 25: Section 6: Roadmap for the Future
Section 6 Appendix Section 6: Roadmap for the Future
Slide 26: JSP's key focus areas
JSP’s key focus areas 01 03 05 02 04 High Return on Capital Make In India Strong Balance Sheet Employed Expand India’s <1.5x net debt / EBITDA Strong FCF Generation manufacturing prowess across all cycles & faster payback and capitalize on strong + Sustainable Growth Steel Focus demand tailwind Stro
Slide 27: Appendix
Appendix
Slide 28: 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 JSP A competitive bidding process to The transparent bidding process The move is a part of the group's The competitive bid process for realiz
Slide 29: 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 furnace (3.05 MTPA) • 3.25 MTPA blast furnace, one of the largest in India.One of the largest 5 MTPA • 1.3
Slide 30: JSP has adeptly navigated the challenges of COVID-19
JSP has adeptly navigated the challenges brought on by the COVID-19 pandemic • JSP’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, JSP has
Slide 31: Global Footprint - Providing raw material security
Global Footprint - Providing raw material security Africa • South Africa ◼ Own and operate an underground anthracite coal mine located in Kiepersol, South Africa through step-down subsidiary Jindal Mining SA (Pty) Limited ◼ Anthracite coal mine, the Kiepersol Project, produces high grade Anthracite
Slide 32: Thank you!
Thank you! Thank you! 31
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