Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q4 FY2022 Earnings Presentation
28 slides from Jindal Steel's earnings presentation, May 30, 2022
Slide 1: Regulation 30 intimation letter to exchanges
May 30, 2022 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 corp.r
Slide 2: Q4FY'22 & FY22 Key Performance Highlights
Q4FY’22 & FY22 Key Performance Highlights 30th May,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: Table of Content
Table of Content Page No Highlights 4 Industry Update 6 Company Update 10 Way Forward 20
Slide 5: Highlights
fw Highlights
Slide 6: JSPL Consolidated Net Debt Bridge – 4QFY22
JSPL CONSOLIDATED NET DEBT BRIDGE – 4QFY22 (INR Crs) 12,000 10,000 2,133 22 6 8,000 6,000 10,981 8,876 4,000 2,000 - Net Debt as on 31st Dec'21 Debt reduction Fx Impact Movement in Cash & Cash Net Debt as on 31st Mar '22 (Including prepayments) Equivalents 5
Slide 7: Industry Update
Industry Update
Slide 8: Fundamentals for global steel industry remain strong in the long term
FUNDAMENTALS FOR GLOBAL STEEL INDUSTRY REMAIN STRONG IN THE LONG TERM Healthy Steel Demand 1. Chinese government’s policy to reduce steel production each subsequent year should keep supply in check over the long run 2. Export rebates have been eliminated and Chinese mills are moving away from export
Slide 9: Indian steel demand remains robust supported by govt stimulus
INDIAN STEEL DEMAND REMAINS ROBUST SUPPORTED BY GOVT STIMULUS India‘s GDP Growth is projected to post robust Indian Steel Consumption was up c.7% Q-o-Q during growth of 7.2% in FY23 4QFY22 • At 9.2%, India’s GDP growth in FY 22 was the fastest in at least 17 years (Fig in Mill MT) Steel Production S
Slide 10: Key pricing trends
KEY PRICING TRENDS HRC & Rebar Prices have declined in the past Long steel prices (Primary Rebar) now trading at a small month discount to flat (HRC) 85,000 HRC and Rebar prices (INR/t) 18,000 Domestic HRC less Rebar prices (INR/t) 80,000 16,000 75,000 70,767 14,000 70,000 12,000 65,000 10,000 68,75
Slide 11: Company Update
Company Update
Slide 12: Business Segments
BUSINESS SEGMENTS STEEL MINES & MINERALS India: Global: Iron Ore Coking Coal Anthracite 9.6 MTPA Steel Kasia, Odisha Mozambique South Africa 9 MTPA Pellet Plant Tensa, Odisha Australia 11
Slide 13: Steel capacities across life cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) WRM 0.60 MTPA (Wire Rod Mill) Capacity DRI 3.12 MTPA in deail (Direct Reduced Iron) Rail Mill 0.75 MTPA SMS 9.60 MTPA (Steel Melting Shop) BSM 0.70 MTPA (Beam & Structure Mill) BF 7.30 MTP
Slide 14: India Capacities
INDIA CAPACITIES Raigarh Angul Barbil Patratu (Chhattisgarh) (Odisha) (Jharkhand) Mining (Odisha) C G P 225,000 B F 3.05 M T PA Nm 3/Hr D R I 1.32 M T PA B F 4.25 M T PA W R M 0.60 Tensa SM S 3.6MTPA D R I 1.8 M T PA M T PA 3.11 M T PA Plate Mill 1.00 Pellet Plant SM S 6 M T PA M T PA 9 M T PA Rail
Slide 15: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (INR Crores) Q3 FY 22 Q4 FY 22 PARAMETER Q4 FY 22 Q4 FY 21 13,601 15,609 Gross Revenue* 15,609 11,744 11,955 13,831 Net Revenue 13,831 10,430 3,168 2,827 EBITDA 2,827 4,884 563 551 Depreciation + Amortization 551 548 325 295 Interest 295 500 2,303 2,009 PBT (Before Exc
Slide 16: Operational Performance: Steel Production & Sales
OPERATIONAL PERFORMANCE Steel Production & Sales* 2.13 2.11 2.07 2.08 2.01 1.96 1.93 1.93 1.93 1.91 1.87 1.84 1.82 1.67 1.67 1.61 1.61 1.57 1.57 1.58 1.54 1.56 1.52 1.51 1.48 1.40 1.34 1.36 1.33 1.32 1.30 1.27 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22
Slide 17: Key Customers & Adding...
KEY CUSTOMERS & ADDING... roar) = ReuAnce SMMA wears AE parrudte nN ca tee Rusrer Resa ats Nee! = os Indian LANCO g GL Group ~ @ “wD fan (4) - — = : varayprojects GD Puriuoya 7) SIMPLEX Indiabulls ie ee AMET = LODHA Giisminte Se ME ser by Prgereoa) Quensomo vedanta FT + CC geen Sayree essa’ ©. 4G A
Slide 18: Consolidated Structure
CONSOLIDATED STRUCTURE Jindal Steel & Power (JSP) Listed Operating Entity in India 100.0% Jindal Steel O d i s h a ( J S O L ) Angul Expansion 100.0% Jindal Steel & Power (Mauritius) (JSPML) Holding company for overseas business 98.6% 73.9% 97.5% Australia South Africa Mozambique Coking Coal Anthrac
Slide 19: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS MOZAMBIQUE 5 MTPA coal mine in Mozambique’s coal-rich Moatize region Q4FY22 • Coking Coal Sales Vol. 157kt • EBITDA ~US$ 13Mn SOUTH AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthracite coal, WCL comprises of two coking coal sold domestically and
Slide 20: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (INR Crores) Q3 FY 22 Q4 FY 22 PARAMETER Q4 FY 22 Q4 FY 21 14,171 16,119 Gross Revenue* 16,119 11,908 12,525 14,340 Net Revenue 14,340 10,594 3,310 3,070 EBITDA 3,070 4,964 613 272 Depreciation + Amortization 272 588 472 373 Interest 373 576 2,235 2,428 PBT (Before E
Slide 21: Way Forward
Way Forward
Slide 22: JSP: Strategic Growth Framework
JSP : STRATEGIC GROWTH FRAMEWORK STEEL FOCUS SUSTAINABLE Incremental Capex GROWTH to be spent on core Sustainability of Steel & Related operations remains Business at the heart of all project considerations HIGH RETURN ON CAPITAL EMPLOYED (ROCE) Strong Free Cash Flow Generation & Faster payback 21
Slide 23: Phase II - Capacity Addition to Boost Volumes
PHASE II- CAPACITY ADDITION TO BOOST VOLUMES CRUDE STEEL CAPACITY (MTPA) CAPEX BREAKUP Raigarh Angul Phase I Angul Phase II Angul Phase II (3 15.9 MTPA EAF) Angul Phase II (3.3 12.9 MTPA BOF) 6.3 3.3 Margin 9.6 Expansion, 37% 8.6 INR 18,0001 Cr 6.0 6.0 6.0 Volume 5.0 Expansion, 63% 3.6 3.6 3.6 3.6 F
Slide 24: Phase II: Angul crude steel capacity to double
PHASE II: ANGUL CRUDE STEEL CAPACITY TO DOUBLE TO 12 MT BY MAR 2025 RAW MATERIALS SEMI-FINISHED HOT FINISHED RAW MATERIALS IRONMAKING STEELMAKING PREPARATION PRODUCTS ROLLING PRODUCTS Electric Arc Coal Gasification Direct Reduced Furnace (EAF) Plate Mill Plant(CGP) Iron(DRI) making Coal Plate D Slab
Slide 25: Angul Phase-II: Timeline
ANGUL PHASE-II : TIMELINE Expected FY22 FY23 FY24 FY25 COD Angul Pellet Plant #1: 6MTPA 2QFY23 Margin HSM Phase #1: 3MTPA 4QFY23 Expansion : Angul Pellet Plant #2: 6MTPA 2QFY24 INR 6,600 Cr. Slurry Pipeline 2QFY24 Oxygen plant, Coke oven , RMHS 2QFY24 HSM Phase #2 Expand to 5.5 MTPA 2QFY24 Blast Fur
Slide 26: Integrated Steel Plant, Angul; Pellet Plant, Barbil
ODISHA INTEGRATED STEEL PLANT, ANGUL PELLET PLANT, BARBIL 25
Slide 27: Chhattisgarh & Jharkhand
CHHATTISGARH & JHARKHAND INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR WRM & BRM, PATRATU ,JHARKHAND 26
Slide 28: Thank You!
THANK YOU! non STEEL & POWER
Jindal Steel & Power — Q4 FY2022 Earnings Presentation on 6ix