Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (October 2023)
50 slides from Jsw Steel's investor presentation, October 2023
Slide 1: Corporate Presentation
Corporate Presentation October 2023 Corporate Presentation JSW Athletes from Inspire Institute of Sport shine with 17 Medals at the Asian Games
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 13 Digitalisation at JSW Steel 37 Appendix 41 JSW Steel Corporate Presentation: October 2023 3
Slide 4: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: October 2023 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: Climate Change: Emission Target and Initiatives
Climate Change: Emission Target and Initiatives Planned/ Potential initiatives to reduce CO2 intensity Derivation of carbon emission target for 2030 3.0 2.5 India NDC target Energy Transition from thermal to Renewable in steel making 2.40 as per Paris Accord 2.0 1.95 JSW Steel target Reduction of Co
Slide 7: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: October 2023 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • Capacity of 6.8 GW (Hydro, • Capacity of 160,000 klpa • Second largest Port & • Capacity of 29.7 mtpa, growing Renewable and Thermal) • State-of-the-art plants in Terminal operator in India to 38.5 mtpa by FY25 • Growing to 20 GW by 2030 Ka
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 18.0 18.0 18.0 85.0 80.4 87.4 19.0 20.1 18.5 73.9 14.9 7.8 11.9 19.5 4.2 1.6 1.7 0.3 FY02 FY10 FY19 FY
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: Healthy Outlook on Strong Domestic Steel Demand
Healthy Outlook on Strong Domestic Steel Demand Resilient operating and Expect strong steel demand Strong outlook for India financial performance in H2 FY24 • Sales volume up 18% YoY in H1 • Domestic steel price hikes of Aug- • Govt.’s infrastructure drive, FY24 on higher capacities and Oct to flow
Slide 13: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: October 2023 13
Slide 14: 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 15: 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 16: 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 17: 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 3.5 Organic Growth Options • Brownfield growth potential of ~5mt at eac
Slide 18: 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 19: 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 and 4 mines in Odisha Karnataka – 9 mines Mines • Won 3 mines in Karnataka, 2 in Goa and 2 exploration blocks in Maharashtra • 236
Slide 20: 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 21: 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 22: 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 23: 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 17,000 retail stores across more than 530 districts in India • Strong distribution channel of 2,336 points o 1,886 Branded Stores o 687 JSW Shop
Slide 24: 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 25: 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 26: 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 42% reduction of CO2 to Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process 1.95tC
Slide 27: Building a Strong Health & Safety Culture
4 Building a Strong Health & Safety Culture Safety Experience Centre at Dolvi JSW Steel’s Vision 000 Safety Initiatives & Recognitions Zero Zero Zero major Capability Building Initiatives injury harm incidents • Established a Safety Experience Center with both indoor and outdoor facilities at Dolvi
Slide 28: Our Commitment to Society
4 Our Commitment to Society Key Intervention Areas Health and Nutrition JSW Foundation joins the program Health & Agriculture for Tuberculosis-free villages: Nutrition ‘TB-Mukt Panchayat’ Water, • Focus on early detection, treatment, Environment & Education community participation and awareness Sani
Slide 29: 17 medals from IIS at Asian Games
4 17 medals from IIS at Asian Games Aquatic Centre in Odisha Inspire Institute of Sports (IIS) • IIS is a state-of-the-art High Performance Centre in India and has satellite centres in Hisar, Odisha, Himachal Pradesh and Manipur • 300 athletes across 5 Olympic sports: Boxing, Wrestling, Athletics, J
Slide 30: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.48 2.36 6.04 2.45 2.45 2.46 5.77 2.41 5.66 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY
Slide 31: 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 32: 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 33: 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 34: 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 12.38 167.0 147.9 21.86 17.69 14.68 15.55 15.60 14.90 14.95 87.4 85.0 80.4 12.25 11.66 73.4 73.9 60.7 46.2 FY16 FY17
Slide 35: Prudent Capital Allocation: 10 Year TSR CAGR of 26%, and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 26%, 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% FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY18 FY19 FY20 FY21 FY22 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 36: 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 3.20x Bonds and 0.92x 2.40x 2.61x debentures, 0.83x 0.89x 2.52x Foreign INR debt, 43% 41% 1.45x
Slide 37: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: October 2023 37
Slide 38: 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 39: 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 40: 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 41: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: October 2023 41
Slide 42: Global Steel
Global Steel Crude Steel Production – Jan-Aug (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Aug CY21 Jan-Aug CY22 Jan-Aug CY23 CY22 CY23F (Apr 23) CY23F (Oct 23) CY24F (Oct 23) China Crude Steel Production (LHS) 150 10 +0.2% +1.8% Exports (RHS) 8 100 1,256 +2.6% 1,849 1,822 1,815
Slide 43: Indian Steel
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q2 FY23 Q1 FY24 Q2 FY24 Finished Semis Finished Semis +15.9% +16.1% YoY YoY 1.83 2.33 34.85 34.81 1.54 1.58 +16.1% 1.80 0.28 -40.9% 32.80 0.33 QoQ QoQ 31.19 0.15 0.18 1.37 30.0 0.39 28.30 +19.0% 0.19 -23.7% 1.50 2.05
Slide 44: Q2 FY24 Production & Sales and FY24 Guidance
Q2 FY24 Production & Sales and FY24 Guidance In million metric tonnes Crude Steel Crude Steel Particulars Sales Sales Production Production Q2 FY24 Q2 FY23 Consolidated India Operations 6.20 6.18 5.57 5.63 USA – Ohio Operations 0.14 0.16 0.08 0.11 JSW Steel Consolidated Operations 6.34 6.34 5.66 5.7
Slide 45: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Constrution activities for all packages underway • Refractory erection underway for BF package • One Convertor erection completed at Steel Melt Shop • Equipment erection underway at Hot Strip Mill • Project to be completed by end of FY24 C
Slide 46: Key Project Updates – BPSL & Downstream
Key Project Updates – BPSL & Downstream Phase-II Expansion from 3.5 to 5 MTPA • SMS-2 expansion expected to be commissioned in Q3 FY24 • Civil, Structural & Equipment Erection work in progress for Wire Rod Mill-2, Lime Calcination Plant-6 • Project expected to be completed by the end of FY24 Downstr
Slide 47: 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 48: Recent Awards & Recognitions
Recent Awards & Recognitions Golden Peacock Award 2023 JSW Salem – won the Dolvi JSW Works recognized One of the only 3 steel for Innovative Sword of Honour award with 5-star Safety rating from companies globally to product/service – JSW Steel from British Safety British Safety Council achieve CDP A
Slide 49: 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 50: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in