Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (May 2023)
43 slides from Jindal Stainless's investor presentation, May 24, 2023
Slide 1: Intimation to exchanges under Regulation 30
Sea 24th May, 2023 TA INLESS BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department, Exchange Plaza, 5 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-40
Slide 2: Corporate Presentation Jindal Stainless Limited 2023
CORPORATE PRESENTATION JINDAL STAINLESS LIMITED 2023
Slide 3: Disclaimer
DISCLAIMER 2 This presentation and the accompanying slides (the “Presentation”), which has been prepared by Jindal Stainless Limited (the "Company"), has been prepared purely for information purposes only and is not, and is not intended to be, an offer, or solicitation of offer, or invitation or rec
Slide 4: Content
CONTENT 3 1 OVERVIEW 2 SECTOR DYNAMICS & DIVERSIFIED APPLICATIONS 3 ESG 4 FINANCIALS 5 ANNEXURE
Slide 5: Overview
OVERVIEW
Slide 6: Scripting the Stainless Revolution
SCRIPTING THE STAINLESS REVOLUTION 5 #1 #5 ~5 >120sku Stainless steel player Top Global Player Decades of Group Excellence Diversified High End in India Ex-China Product Mix 40+ ~3mtpa ~Rs. 35bn ~Rs. 3.6bn Exports to countries Stainless steel Capacity – Revenues (Net)* EBITDA* with scalable infrastr
Slide 7: Overview
OVERVIEW 6 State-of-the-art’ Machinery For Globally Competitive Products Robust Logistics Infrastructure; In-house Railway Sidings, Close Proximity To Ports ‘World Largest Producer Of Stainless Steel Strips For Razor Blades And India’s Largest Producer Of Coin Blanks PARTICULARS CAPACITY MT
Slide 8: Key Manufacturing Locations
KEY MANUFACTURING LOCATIONS 7 ODISHA: 2.1MTPA HISAR: 0.8 MTPA
Slide 9: Group Structure
GROUP STRUCTURE 8 Promoter Public 58% 42% Jindal Stainless Ltd. Hot shop mill of 1.6 mtpa (to Jindal United expand up to 3.6 mtpa Iber Jindal Service centre in Spain Steel ltd.* Cold rolling facility of 0.2 mtpa Domestic service centre & PTJSI 0.15 mtpa cold rolling of Indonesia JSSL Wareh
Slide 10: Sector Dynamics & Diversified Applications
SECTOR DYNAMICS & DIVERSIFIED APPLICATIONS 9
Slide 11: Value-Added & Sustainable Metal
VALUE-ADDED & SUSTAINABLE METAL 10 Low Maintenance Weldability Formability Aesthetics Stainless Steel Longevity/ Durability Recyclability/ Low Life Cycle Circularity Cost Corrosion Resistance Stainless steel - The “Green wonder Metal”
Slide 12: Favorable Growth Trajectory
FAVORABLE GROWTH TRAJECTORY 11 …with stainless steel as the fastest growing metal Stainless Steel 5.4% Aluminium 3.7% 1980 - 2021 CAGR Copper 2.5% Carbon Steel 2.4% Zinc 2.0% Lead 2% India continues to be the second largest consumer with consistent growth over the years given its low per capita cons
Slide 13: Global Growth Prospects
GLOBAL GROWTH PROSPECTS 12 Global SS Consumption (mtpa) CAGR: 4.0-4.5 % Covid Impact & 79.0 Subsequent latent CAGR: 4.5 % demand 64.0 58.3 55.3 50.3 52.2 51.8 45.8 48.1 12.1 41.7 41.5 9.0 8.8 9.4 38.5 8.2 9.3 33.6 35.9 7.9 7.8 31.1 7.6 7.3 24.9 7.7 7.2 23.3 24.7 27.2 31.0 32.6 22.2 19.1 19.3 6.5 15.
Slide 14: India Growth Prospects
INDIA GROWTH PROSPECTS 13 India SS Consumption (mtpa) CAGR: 7-7.5 % 6.7-6.8 CAGR: 7-7.5 % Covid Impact & Subsequent latent 4.7-4.8 demand 3.7 3.8 3.5 3.2 3.2 3.2 2.9 2.6 2.6 2.7 2.2 2.0 1.7 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Inclu
Slide 15: A Presence to Reckon With
A PRESENCE TO RECKON WITH reese aratwieas Global Footprint Domestic Footprint [ Hyderabad © Chennai Q JsL & associate sales offices © JSL & associate service centers al Manufacturing facilities
Slide 16: Stainless Steel: Key Segments
STAINLESS STEEL: KEY SEGMENTS 360o Product Applications Jindal Stainless caters to a wide range of products across segments…
Slide 17: Evolution Through Decades
EVOLUTION THROUGH DECADES 16 1998 2022 3% 2% 20% 7% 12% 38% 13% 80% 25% OVER THE PAST 2 DECADES, SS CONSUMPTION DIVERSIFIED TO NEW VALUE-ADDED SEGMENTS vis ABC, ART AND PROCESS INDUSTRIES FROM THE HISTORIC USAGE IN COOKWARE/DURABLES Source: Stainless -Steel-world.net; JPC-Ministry of Steel-Mindsight
Slide 18: Diversified Consumption Pattern
DIVERSIFIED CONSUMPTION PATTERN 17 Carbon Steel Stainless Steel 1% EBITDA per tonne variance 5% 6% 12% 1.5 13% 0.8 15% 44% 0.5 0.8 12% 62% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 30% JSL Player 1 Player 2 Player 3 Standard Deviation Construction & Infra 44% 12% 1% Auto, Railways 13% & Transport Capi
Slide 19: New Stainless Frontiers
NEW STAINLESS FRONTIERS 18 Girders, Columns, Cross Beams etc. Girders, Columns, Cross Beams etc. Girders, Columns, Cross Beams etc. Outer Support Structures
Slide 20: Successful Re-jig in Supply Chain Management
SUCCESSFUL RE-JIG IN SUPPLY CHAIN MANAGEMENT 19 Planning, operations, sales, and sourcing underwent a complete overhaul adoption of Theory of Constraints (ToC). More than Five decades of data helped in transforming the production from Made to Order (MTO) to Made to Anticipation (MTA). 70% shift to M
Slide 21: Creating a Benchmark in Customer Experience
CREATING A BENCHMARK IN CUSTOMER EXPERIENCE 20 Online order booking Online complaint registration Online auction Secure payment gateway process powered by SBI Online product 24X7 availability inquiry Maximum Download documents in a single performance click Minimum interference User Friendly 360 Dash
Slide 22: Expanding Brand and Market Presence
EXPANDING BRAND AND MARKET PRESENCE 21 Investing in various Branding & marketing initiatives to enhance overall market potential by: – Creating awareness of hygiene and health benefits of stainless steel – Increase usage of stainless steel in Home and Public Spaces Home Smart Home Campaign Stainless
Slide 23: Key Drivers
KEY DRIVERS 22 Structural STRUCTURAL growth OF GROWTH of stainless STAINLESSsteelSTEEL demand in IndiaIN INDIA DEMAND • Fastest growing value-added metal globally • New age applications, awareness, replacement demand to continue support DIVERSIFIED END USE SEGMENTS WITH ROBUST DOMESTIC & GLOBAL PRES
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23 23
Slide 25: ESG Snapshot: Environment
ESG Snapshot 24 ENVIRONMENT CLIMATE CHANGE EMISSION INTENSITY CIRCULAR ECONOMY Committed to 1.91 tCO2e /tcs Majority Recycled material utilized, NET ZERO (Scope 1 & 2 value chain intensity) Scrap utilization carbon emissions by 2050 Electric Arc Furnace Scrap Based Process RENEWABLE ENERGY WATER MAN
Slide 26: ESG Snapshot: Social
ESG Snapshot 25 SOCIAL SAFETY MANAGEMENT COMMUNITY DEVELOPMENT 0.06 LTIFR 4.5 Lakh+ Beneficiaries Continuous safety programs through our intensive CSR programs to date • Implemented several safety measure & rolled out “Accident free steel” a program which necessitates safe working procedures on site
Slide 27: ESG Snapshot: Governance
ESG Snapshot 26 GOVERNANCE POLICIES • Jindal Stainless have formulated several policies within the Company’s Corporate Governance framework. These policies help foster an organizational culture that results in transparent, ethical, and responsible operations of the group. Some of the policies and co
Slide 28: ESG Snapshot: Renewable Energy and Green Hydrogen
ESG Snapshot 27 Renewable Energy Green Hydrogen Partnered with Hygenco India Private ltd. For incremental energy requirement to support the Green Hydrogen to replace fossil fuels 1MTPA expansion in Odisha, signed MoU with M/s Expected Carbon abatement t CO2/yr 2700 MT per annum Renew Power- ~3
Slide 29: ESG Snapshot: Carbon Reduction Initiatives
ESG Snapshot 28 Carbon Reduction Initiatives Electric Vehicles with Achieved 656 TCO2 estimated Carbon reduction by converting to Annual CO2 emissions reduction of 54 Tons LED lighting in entire plant reductions from efficient and township pump installation: 921 per annum Biomass Co-firing in Annual
Slide 30: Financials
29 FINANCIALS
Slide 31: Robust Performance
ROBUST PERFORMANCE 30 Sales Volume ('000) Revenue (Cr.) 1,671 1,764 32,292 35,030 1,338 19,081 FY21 FY22 FY23 FY21 FY22 FY23 EBITDA (Cr.) EBITDA/t PAT (Cr.) 17,473 28,250 20,216 2,790 4,720 2,014 3,567 897 2,337 FY21 FY22 FY23 FY21 FY22 FY23
Slide 32: Strong Deleveraging
STRONG DELEVERAGING 31 11.0 Net Debt (Rs. Cr.) D/E (x) Net Debt/EBITDA (x) 8.4 4.2 2.7 2.6 2.3 1.3 0.7 0.7 2.9 3.4 3.2 1.4 1.3 0.9 0.5 0.3 0.2 11,185 11,145 8,483 6,585 5,366 4,711 3,135 3,179 2,591 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 33: Key Ratios
KEY RATIOS 32 Net worth (Rs. Cr.) Net Debt (Rs. Cr.) Net Debt/EBITDA (x) Net Debt/Equity (x) 9,446 11,456 1.3 6,549 0.7 0.7 0.5 3,135 3,179 0.3 0.2 2,591 FY21 FY22 FY23 FY21 FY22 FY23 RoCE (%) RoE (%) 34% 35% 20% 15% 19% 15% FY21 FY22 FY23 FY21 FY22 FY23
Slide 34: Resilient Performance
RESILIENT PERFORMANCE 33 EBITDA/ton TTM 36,000 Nickel Surge Ukraine war Export Duty 32,000 Export duty removal 27,600 27,200 28,000 25,400 22,500 24,100 24,000 21,400 Average- Rs. 24,000 19,600 20,000 16,000 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Slide 35: Ratings 5 Notches Higher
PERFORMANCE THAT KEEPS THE FLAG HIGH! 34 TERM LOAN AA- POSITIVE APR23 TERM LOAN AA- STABLE JAN22 TERM LOAN A+ STABLE RATINGS 5 NOTCHES MAY21 HIGHER TERM LOAN BBB+ JAN21 TERM LOAN BBB / STABLE JAN20
Slide 36: Key Updates
KEY UPDATES 35 Project Commissioning Doubled the melt capacity at Jajpur at 1/3rd of greenfield capex cost along with downstream capacities Strengthening product mix; Expanded the precision strip by 3X Dividend FY23 dividend payment of Rs.2.5 i.e. 125% per equity share with a face value of Rs.2
Slide 37: Leadership Play
LEADERSHIP PLAY 36 Integrated and Innovation led Leadership position in the fast growing operation along with cost efficiency - Value-Added stainless steel sector State-of-art facilities Huge operating leverage - Strong and deleveraged balance low incremental capex to sheet/ capital structure drive
Slide 38: Contact Us
CONTACT US 37 About Us: Jindal Stainless is India's leading stainless steel producer with manufacturing facilities at Jajpur, Odisha and Hisar, Haryana, and an Shreya Sharma / Kapil Joshi overseas unit in Indonesia. It has six service centres in India and one in Jindal Stainless Limited Spain, besid
Slide 39: Thank You
38 Thank You
Slide 40: Annexure
Annexure
Slide 41: JUSL Performance FY23
JUSL Performance FY23 40 EBITDA (Cr.) Interest cost (Cr.) 712 590 236 213 FY22 FY23 FY22 FY23 PAT (Cr.) Net Debt (Cr.) 258 2,030 148 1,956 FY22 FY23 FY22 FY23
Slide 42: Promoters' Pledging: Clarification
PROMOTERS’ PLEDGING: CLARIFICATION 41 There is no loan raised against the promoters’ shares (LAS), and therefore there is no linkage between the pledged shares and their market value Accordingly, there is no requirement of maintaining any margins, since the aforesaid shares are offered only as an ad
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