Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (January 2024)
49 slides from Jsw Steel's investor presentation, January 2024
Slide 1: Corporate Presentation
Atal Setu: Mumbai Trans-Harbour Link Connecting Mumbai: JSW Steel was the Principal Steel Supplier to India’s longest sea bridge of 21.8km Corporate Presentation Corporate Presentation January 2024
Slide 2: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 3: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 12 Digitalisation at JSW Steel 36 Appendix 40 JSW Steel Corporate Presentation: January 2024 3
Slide 4: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: January 2024 4
Slide 5: Sustainability at JSW Steel
Sustainability at JSW Steel ESG Focus Areas Driving Sustainability Initiatives Across Platforms Environment Social Climate Energy Resources change Indigenous Cultural Employee people heritage wellbeing Water Waste Waste Water resources Local Social considerations sustainability Air Biodiversity Sust
Slide 6: Targeting Net Zero by 2050
Targeting Net Zero by 2050 Short-Term Medium and Long-Term Ensuring Renewable Power Commercial Deployment Nature Based Use of Syngas & TGR1 in Energy Efficiency (Energy Transition) of Green Hydrogen for Solutions BF (Carbon Circularity) Steelmaking Actively Improving Enhancing Process Scrap-based EA
Slide 7: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: January 2024 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • Capacity of 7.2 GW (Hydro, • Second largest Port & • Capacity of 20.6 mtpa, • Capacity of 29.7 mtpa, growing Renewable and Thermal) Terminal operator in India growing to 25 mtpa to 38.5 mtpa by FY25 • Growing to 20 GW by 2030 with capacity
Slide 9: JSW Steel: Among India's Leading Steel Manufacturers
JSW Steel: Among India’s Leading Steel Manufacturers One of the leading steel players Diversified product portfolio Integrated manufacturing process in India • Extensive product portfolio • Most geographically diversified steel • From raw material processing plants Hot-rolled, cold-rolled & coated c
Slide 10: Transformational Growth and Value Creation
Transformational Growth and Value Creation India Capacity (mtpa) Total Revenue (₹ 000’s Cr) EBITDA (₹ 000’s Cr) CAGR FY02-23: 15% CAGR FY02-23: 24% CAGR FY02-23: 22% 27.0 27.7 28.2 167.0 39.0 147.9 129.5 18.0 18.0 18.0 20.1 22.1 85.0 80.4 19.0 18.5 73.9 7.8 11.9 19.5 4.2 1.6 1.7 0.3 FY02 FY10 FY19 F
Slide 11: Strategic Priorities to Create Shared and Sustainable Value
Strategic Priorities to Create Shared and Sustainable Value Cost leadership Being future Enhance value- Mainstreaming through ready through Strategic growth added product Strong financial sustainability resource technology-led with efficient portfolio with profile and across the optimisation and tra
Slide 12: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: January 2024 12
Slide 13: JSW Steel: Key Investment Highlights
JSW Steel: Key Investment Highlights Leading steel producer in India with plans to expand domestic capacity to 37mtpa by FY25 and to 1 Size, Scale & Growth 50mtpa by FY31 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins furt
Slide 14: Leading and Most Geographically Diversified Steel Producer in India
1 Leading and Most Geographically Diversified Steel Producer in India India International Europe Rajpura BPSL Chandigarh Bawal Piombino, Italy BPSL Kolkata Kalmeshwar Plate & Coil Mill, Anjar USA Khopoli Vasind & Tarapur BPSL Jharsuguda: 3.5 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa Ohio: 1.5 mtpa Vija
Slide 15: Strong Fundamentals for India Steel Demand
1 Strong Fundamentals for India Steel Demand Significant room for Healthy Steel Demand Outlook in India growth in steel India Steel: Strong Fundamentals (mt) consumption in India Government Capex (INR tn)2 Production-Linked China, Incentive Scheme1 Crude Steel Crude Steel Finished Steel 646 10.0 Cap
Slide 16: Aligned to India's Growth Story
1 Aligned to India’s Growth Story Near-term growth to take JSW Steel India capacity to 37mt; potential to scale up to 50mt by end of decade Vijayanagar BPSL JISPL 28.2 37.0 50.0 13.0 0.3 2.0 1.5 Pathway to 50mtpa 1.5 5.0 5.0 1.2 Organic Growth Options 3.5 • Brownfield growth potential of ~5mt at eac
Slide 17: One of the Lowest Costs of Conversion Globally
2 One of the Lowest Costs of Conversion Globally Resilient business model based on continued focus on cost leadership WSD Aggregate Ranking1 Leading position on global conversion cost curve – Conversion cost of c.$149/tonne in FY23 # 5 ranked in Asia Technology, analytics and innovation continue to
Slide 18: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 13 operational captive iron ore mines Raw material security ensuring raw material supply Steel Plants • Operating 9 mines in Karnataka (7mtpa capacity) and 4 mines in Odisha (20- Karnataka – 9 mines Mines 25mtpa) • 236 MnT of aggregate JV and Associates- Steel Plan
Slide 19: Steel Products for Diverse Applications
3 Steel Products for Diverse Applications Infra & Construction Consumer Durables Pipes & Tubes • Buildings (Resi. & Commercial) • Refrigerators Key Products • Roads • Air Conditioners • Bridges • Home Appliances • Metro & other Urban Infra • Tinplate for Packaging • HR Plates, • Airports • Oil & Non
Slide 20: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Super premium, colour coated coils & sheets, with a 20 year warranty Colour Coated • Premium colour coated coils & sheets, with a 15 year warranty • 3 variants - Cool Roof, Anti Dust & High Gloss • High quality Al-Zn alloy & colour
Slide 21: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales Tinplate • Tinplate coils and sheets with high strength and formability, used in food and non-food packaging Galvanised • Galvanized steel that is lead free, suited for consumer durable sector with high safety and non-hazardous mater
Slide 22: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales Strong distribution reach across India JSW Steel’s branded Products • Presence in around 17,500 retail stores across more than 530 districts in India • Strong distribution channel of 2,475 points o 2,025 Branded Stores o 706 JSW Shop
Slide 23: JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel
3 JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel Solar Structures • JSW Steel has developed a new coated product for Solar applications, that offers up to 4x corrosion resistance than conventional Galvanised or Galvalume coated steel sheets • 1st company in India to produce Zn-Mg-Al Coated Steel;
Slide 24: Contributing to India's High Speed Rail Journey
3 Contributing to India’s High Speed Rail Journey Supplying Steel to Mumbai Ahmedabad Bullet Train Project • Mumbai–Ahmedabad High Speed Rail (MAHSR) Corridor is the first of the twelve lines planned by the government. It will cover more than 500 km in 2 hours and 58 minutes with a maximum speed of
Slide 25: Our Commitments: No harm to People, Environment & Society
4 Our Commitments: No harm to People, Environment & Society Climate Change & Renewable Energy Circularity & Biodiversity Water Security Air Emissions Carbon Neutral at JSW Steel by Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process
Slide 26: Building a Strong Health & Safety Culture
4 Building a Strong Health & Safety Culture World Steel Association SCHO-15 Meet JSW Steel’s Vision 000 Capacity Building Zero Zero Zero major • JSW Steel participated in the SCHO-151 meeting injury harm incidents hosted by the WSA in Portland, USA in November • JSW Steel presented a case study titl
Slide 27: Our Commitment to Society
4 Our Commitment to Society Skill Development Key Intervention Areas Health & Agriculture JSW Shakti Nutrition All-women BPO empowers women to earn livelihoods with Water, Education training and mentoring Environment & Sanitation • 260 women employed currently Waste Skill • Trained for handling Mana
Slide 28: Our Commitment to Society
4 Our Commitment to Society Education 100 ‘Holistic Transformation’ of schools ‘Roof to Dream’ Project Schools in North Karnataka in Maharashtra • Focus on improving learning outcomes in children from • Refurbishing school infrastructure to provide a conducive 25,000+ Anganwadi level to Grade-10 lea
Slide 29: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tcs) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.45 2.36 6.04 2.45 2.45 2.41 2.42 5.66 5.71 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24
Slide 30: Strong Board and Experienced Management Team
5 Strong Board and Experienced Management Team Chairperson - Emeritus Chairman and MD Savitri Devi Jindal Sajjan Jindal Executive Directors Jayant Acharya Gajraj Singh Rathore Joint Managing Director & Whole-Time Director & CEO COO Independent Directors Seturaman Mahalingam Haigreve Khaitan Nirupama
Slide 31: Proven Track Record of Organic & Inorganic Growth and Partnerships
6 Proven Track Record of Organic & Inorganic Growth and Partnerships Combination of organic and inorganic growth 2002-2005 2006 2007 2009 2010 2011-2012 • Capacity expanded from • Capacity increased to • Capacity • 3.5 mtpa (HSM-2) • 49.3% stake in • Capacity 1.6 mtpa to 2.5 mtpa 4.8 mtpa increased
Slide 32: Proven Track Record of Organic & Inorganic Growth and Partnerships
6 Proven Track Record of Organic & Inorganic Growth and Partnerships JV with Severfield UK Plc JSW-JFE partnership Partnership overview • JSW Severfield Structures Limited (JSSL) is a 50:50 JV with Severfield Plc, • 14.99% minority stake bought by JFE in 2010 UK, the largest steel fabricator in UK,
Slide 33: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Total Revenues (₹ 000’s Cr) 12.56 15.80 16.27 16.69 16.06 15.08 18.96 23.62 19.01 167.0 147.9 21.86 129.5 17.69 17.48 14.68 15.55 15.60 14.90 14.95 85.0 80.4 12.25 73.4 73.9 60.7 46.2 FY16 FY17
Slide 34: Prudent Capital Allocation: 10 Year TSR CAGR of 25%, and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 25%, and Uninterrupted Dividends ROCE Uninterrupted Dividends (₹/share) 29.8% 20.0 15.0 19.6% 19.5% 16.4% 10.0 14.8% 14.7% 3.4 5.0 6.3% 9.6% 0.0 7.6% FY13 FY11 FY12 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 35: Debt Profile and Credit Ratings
8 Debt Profile and Credit Ratings Net Gearing (ND/Equity) within Leverage (ND/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.48x 1.34x 3.75x 1.17x Bonds and 1.02x 3.20x Foreign 2.40x 2.61x 2.64x debentures, 0.83x 0.89x currency debt, 38% 1.45
Slide 36: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: January 2024 36
Slide 37: Digitalization: Strategy, Execution and Impact
Digitalization: Strategy, Execution and Impact Wave-4 and Digital Vision-2026* Expand and scale Digital to best-in-class: Guiding Principles – Sales & Marketing End-to-End Value Lens | Democratize – Manufacturing & Mining (O&M, Quality) Transformation Continuous Digitalization – Sustainability, Safe
Slide 38: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimisation Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 39: Democratizing Digitalisation: Projects implemented
Democratizing Digitalisation: Projects implemented JSW Coated - Tarapur Odisha Mines Yard Management System and Defect Fuel Management System for lower fuel Monitoring System to enhance coil consumption, costs and better tracking, worker efficiency and quality sustainability compliance Sales & Marke
Slide 40: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: January 2024 40
Slide 41: Global Steel
Global Steel Crude Steel Production – Jan-Nov (mt) Finished Steel Demand1 (mt) China Steel Production and Export (mt) Jan-Nov CY21 Jan-Nov CY22 Jan-Nov CY23 CY22 CY23F (Dec 23) CY24F (Dec 23) China Crude Steel Production (LHS) 150 10 +0.5% +1.1% Exports (RHS) 8 100 1,715 +1.5% 1,820 1,800 1,783 6 -0
Slide 42: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q3 FY23 Q2 FY24 Q3 FY24 Finished Semis Finished Semis +15.9% +12.1% +12.0% 2.59 YoY YoY 2.26 2.23 2.33 35.98 0.35 35.14 35.15 0.33 +16.2% 0.28 -16.4% 0.41 1.64 32.10 31.38 33.51 1.66 QoQ 1.37 QoQ 0.23 1.32 0.19 0.18 0
Slide 43: Q3 FY24 Production & Sales
Q3 FY24 Production & Sales In million metric tonnes Particulars Crude Steel Production Sales Q3 FY24 Q3 FY23 YoY Q3 FY24 Q3 FY23 YoY Consolidated India Operations 6.63 6.06 9.4% 5.82 5.55 4.9% USA – Ohio Operations 0.24 0.08 191.1% 0.18 0.08 129.9% JSW Steel Consolidated Operations 6.87 6.14 11.9% 6
Slide 44: Key Project Updates – BPSL & Downstream
Key Project Updates – BPSL & Downstream Phase-II Expansion from 3.5 to 5 MTPA • SMS-2: DRI conveyor, Zero Power Furnace, Caster and supporting facilities commissioned • Wire Rod Mill-2 and Lime Calcination Plant-6 commissioning in Q4 FY24 • Project to be completed in Q4 FY24 Ladle Turret at SMS-2 in
Slide 45: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Construction activities for all packages underway • BF: Civil & Structural nearing completion. Equipment erection & Piping work at advanced stage • SMS: 1st Convertor and Caster equipment erection completed • HSM: All Mill Stands erected a
Slide 46: Case study: Turnaround Strategy at JSW Ispat's Dolvi plant
Case study: Turnaround Strategy at JSW Ispat’s Dolvi plant JSW Steel has a proven track record of identifying, acquiring and integrating assets creating synergies and optimizing costs Completed initiatives – December 2010 FY2016 – 2017 FY2018 – 2022 FY2011 – 2015 • Plant under maintenance • Infusion
Slide 47: Recent Awards & Recognitions
Recent Awards & Recognitions JSW Salem – won the Dolvi JSW Works recognized Included in the Dow Jones One of the only 3 steel Sword of Honour award with 5-star Safety rating from World and Emerging Markets companies globally to from British Safety British Safety Council Sustainability Indices achiev
Slide 48: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Solar Project: Contributed 2.3 GW Wind Project: Contributed 1.4 GW Metro Projects: 57 km of Metro project lines High Speed Rail (Mumbai-Ahmedabad Bullet (Mumbai, Pune, Nagpur, Bengaluru, Train) Project Ahmedabad, Chennai, Indore, Kochi & Delhi)
Slide 49: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in