Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (December 2019)
37 slides from Jindal Stainless's investor presentation, Dec 4, 2019
Slide 1: Intimation of Investors Meeting on December 5, 2019
J I N D A L December 4, 2019 BSE Limited National Stocl{ Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, 5111 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-40005
Slide 2: Corporate Presentation - Jindal Stainless Limited
Corporate Presentation JINDAL STAINLESS LIMITED
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 Company Overview 2 Stainless steel Sector Dynamics 3 Key Business Highlights 4 Financials 5 Conclusion 6 Annexure
Slide 5: Company Overview
Company 4 Overview
Slide 6: Snapshot
Snapshot 5 Jindal Stainless – Pioneers of the stainless steel industry in India #1 ~4 >25% 40+ Stainless steel player Decades of Group Domestic Market Exports to countries in India Excellence Share ~800 0.8Mn Tonnes ~Rs. 126bn ~Rs. 11bn Acre Total Land Area Per Annum stainless steel FY19 Revenues (N
Slide 7: Company Overview
Company Overview 6 Largest integrated stainless steel Company in India with Product Basket manufacturing facilities located at Jajpur, Odisha Robust logistics infrastructure, including in-house railway sidings, with close proximity to ports provide strong support to overall operations – „State-of-th
Slide 8: Stainless steel Sector Dynamics
Stainless steel 7 Sector Dynamics
Slide 9: Stainless 'Value-Added' Steel
Stainless ‘Value-Added’ Steel 8 Low Maintenance Weldability Recyclability Aesthetics Durability Stainless steel Formability Low Life Cycle Cost Corrosion Resistance Stainless steel - The “Green wonder Metal”
Slide 10: Favourable sector dynamics
Favourable sector dynamics… 9 Healthy growth in global stainless steel demand… …with stainless steel as the fastest growing metal Stainless Steel 5.4% 48.1 50.7 45.8 Aluminium 3.8% 1980 - 2018 CAGR 41.7 41.5 35.9 38.5 Copper 2.6% (mt) Carbon Steel 2.4% Zinc 2.0% 2012 2013 2014 2015 2016 2017 2018 Le
Slide 11: Consumption Pattern diversifying across categories
Consumption Pattern diversifying across categories 10 1998 2015 2023E 6% 2% 1% 3% 2% 20% 7% 7% 12% 11% 38% 57% 13% 17% 80% 25% Over the past 2 decades, stainless steel consumption in India has diversified to new value-added categories of ABC, ART and Process industries from the most primary usage in
Slide 12: Stainless steel Product Applications
Stainless steel 11 Product Applications 360o Product Applications Jindal Stainless caters to a wide range of products…
Slide 13: Architecture Building Construction (ABC)
12 Architecture Building Construction (ABC) Decorative and color coated stainless steel Decorative Panels Street furniture Home furniture Escalators, elevators Sculptures & designer items Claddings Commercial Complexes Railings Stainless steel roofing sheets Gates Railway station upgradation
Slide 14: Automobile Railway Transport (ART)
13 Automobile Railway Transport (ART) Bus bodies Exhaust systems, auto chassis, trims, suspension parts, fuel tanks, catalytic convertors Railway wagons and coaches Metro coaches
Slide 15: Process & Engineering
14 Process & Engineering Nuclear grade stainless steel for fuel containment and waste handling Super critical boilers in power plants Water treatment and drinking water supply Desalination applications Chemicals, petro-chemical & fertilizer plants
Slide 16: Consumer Durables
15 Consumer Durables Washing Machine Microwave Refrigerator Utensils Components thereof
Slide 17: Macro factors driving domestic stainless steel consumption trends
Macro factors driving domestic stainless steel Consumption Trends 16 Emerging Trends expected to drive stainless steel usage Increasing shift towards stainless steel in making Railway wagons and coaches Automobile Railway New Trends in Auto sector like stainless steel Fuel Tanks, BS-VI compliant exh
Slide 18: New Age Applications
NewAge Applications 17 Stainless steel Successfully Stainless steel body emerging as a developed stainless coaches and wagons perfect metal for BS- steel fuel tanks for VI compliant exhaust commercial vehicles system Innovative solutions driving usage in newer applications
Slide 19: Key Business Highlights
caw / 2 Seas A — % ey. Business ighlights
Slide 20: Integrated operations with huge opportunity to drive operating leverage
Integrated operations with huge opportunity to drive operating Leverage 19 ~800 ACRE 250,000TPA 100,000TPA 264 MW 450,000TPA Total Land Area Ferro-Alloys Mill Plate Captive Power Plant Cold Rolled Annealing Annealing & Pickling (scalable upto 500MW Pickling line High quality infrastructure and facil
Slide 21: Structural initiatives leading to sustainable turnaround
Structural initiatives – leading to sustainable turnaround 20 Diversification and Innovation-led Lowered logistics cost reliable sourcing of operational efficiency Raw Materials Railway sidings within the plant led Expanded resources of Chrome Increased usage of liquid Ferro to multifold benefits or
Slide 22: JSL – Domestic Footprint
JSL – Domestic Footprint 21 Chandigarh Gurgaon Delhi Corporate Office Odisha Jajpur Ahmedabad Kolkata Dhamra Port Vadodara Jajpur Paradip Port Bhubaneswar Mumbai Pune Kothavalasa Visakhapatnam Hyderabad Bangalore Strategically located Chennai manufacturing facility in Jajpur, Odisha JSL and Associat
Slide 23: JSL – Global Footprint
JSL – Global Footprint 22 Poland Russia Germany Belgium Italy Spain USA China South Korea Turkey Vietnam UAE Thailand Malaysia Indonesia Brazil JSL and Associate Sales Offices JSL and Associate Service Center Manufacturing Facility
Slide 24: Key Growth Drivers
Key Growth Drivers 23 Structural growth of stainless steel demand in India • One of the fastest growing value-added metal • Various Government initiatives to further drive stainless steel demand Wide range of product applications and new segment penetration • Increasing premiumization trend and dema
Slide 25: Financial and Operational overview
Financial and Operational 24 overview
Slide 26: Turnaround in Performance
Turnaround in Performance 25 Stainless steel Sales Volume (MT) Net Revenue (Rs. mn) CAGR: 23.1% 1,25,850 1,07,846 Thousands 83,113 62,371 779 852 641 455 FY17 FY18 FY19 H1 FY20 FY17 FY18 FY19 H1 FY20 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) CAGR: 1.3% 3,183 12% 9% 10% 13% 1,390 1,188 11,067 12,809 1
Slide 27: Focus on strengthening the Balance Sheet
Focus on strengthening the Balance Sheet 26 Net Debt (Rs. mn) Net Debt/Equity Ratio Net Debt/EBITDA 55,861 46,922 5.0 41,040 38,270 3.7 3.6 3.3 3.2 2.0 1.7 1.5 FY17 FY18 FY19 H1 FY20 FY17 FY18 FY19 H1 FY20 ROE (%) ROCE (%) 15.5% 15.6% 10.3% 12.0% 11.4% 8.1% 3.5% 5.8% FY17 FY18 FY19 H1 FY20 FY17 FY18
Slide 28: Comfortable Debt Position
Comfortable Debt Position 27 Borrowings (Standalone) As on As on As on (Rs. million) Sep.2019 Mar.2019 Mar.2018 Long term debt Net Debt/EBITDA 18,823 20,500 24,568 Inter corporate loan from related party 9,000 9,000 9,000 3.7 3.6 OCRPS* 7,390 6,950 6,065 Total Long term debt 35,214 36,450 39,633 Sho
Slide 29: Conclusion
Conclusion 28
Slide 30: Leadership Play
Leadership Play 29 Leadership position in the fast growing Integrated operations with state-of-art Value-Added stainless steel sector – facilities clear proxy to the sector Huge operating leverage - Fast deleveraging to low incremental capex to significantly strengthen drive future growth balance sh
Slide 31: Focus on expanding Brand and Market presence
Focus on expanding Brand and Market presence 30 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
Slide 32: Annexure
Annexure 31 31
Slide 33: Jindal Stainless Ltd
Jindal Stainless Ltd 32 65.00% JSL 99.99% Iberjindal S.L. P. T. Jindal Stainless Indonesia • Stainless steel Service Center • Manufacturing Unit – 150,000 MTPA CR • Offers customized to the doorsteps of capacity customers in Spain • Key producer of stainless steel in South East Asian market Global O
Slide 34: Asset Monetization Plan (AMP)
Asset Monetization Plan (AMP) 33 Jindal Stainless Ltd Jindal Jindal Jindal United Jindal Coke Stainless Stainless Ltd 26% Steel Ltd 26% Ltd Hisar Ltd (JSL) (JUSL) (JCL) (JSHL) Listed Unlisted Entities Entities • Integrated SS • Steel Melting – 800,000 MTPA • Hot strip Mill – • Coke Oven – Facility –
Slide 35: Key Market Statistics
Key Market Statistics 34 Key Market Statistics As on Sept. 30, 2019 BSE/NSE Ticker JSL/ 532508 Industry Stainless steel Closing Market Price (Rs.) 35.40 Market Cap (Rs. mn) 17,248 Number of outstanding shares (mn) 487.2 Face Value (Rs.) 2.00 52-week High / Low (Rs.) 57.0/24.5 Note: Prices considered
Slide 36: Contact Us
Contact Us 35 About Us: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless Goutam Chakraborty / Shreya Sharma steel manufacturer. The Company operates an integrated stainless steel plant at Jajpur, Odisha. The complex
Slide 37: Thank You
Thank You 36
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