Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (May 2023)
52 slides from Jsw Steel's investor presentation, May 2023
Slide 1: Corporate Presentation
Innovation Is Always Around Corporate Presentation May 2023
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 41 JSW Steel Corporate Presentation: May 2023 3
Slide 4: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: May 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 emissions Biodive
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: May 2023 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • Installed capacity of 6.6 GW • Capacity of 160,000 klpa • Ports capacity of 158 mtpa • Consolidated capacity of 29.7 (Hydro, Renewable and • Only fully-automated, water- • Operations across East, mtpa, growing to 38.5 mtpa Thermal) based pl
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 HRC, CRC, Coated, Tinplate, Electr
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 FY03-23: 23% CAGR FY03-23: 15% CAGR FY03-23: 18% 28.2 167.0 27.0 39.0 147.9 18.0 18.0 18.0 18.0 85.0 80.4 20.1 73.4 73.9 19.0 18.5 14.8 7.8 11.9 19.5 4.2 1.6 2.5 0.7 FY03 FY10 FY18 FY
Slide 11: Healthy Outlook Post A Volatile FY23
Healthy Outlook Post A Volatile FY23 FY23 FY24 Medium Term Outlook External headwinds impacted H1; Falling RM prices to support Healthy demand drivers in India healthy recovery in H2 spreads • High coking coal prices, sharp • Benefit of recent sharp decline in • Govt.’s infrastructure drive is decli
Slide 12: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: May 2023 12
Slide 13: Key Investment Highlights
Key Investment Highlights 1 Size, Scale & Growth Leading steel producer in India with near-term growth to take domestic capacity to 37 mtpa 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins further enhanced by significant dow
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 (JISPL) Ohio: 1.5 m
Slide 15: BPSL - Facilities and Capacities Overview
1 BPSL - Facilities and Capacities Overview Chandigarh Kolkata Expansion Plan Cold Rolled Steel Strips and Value added: CRCA, GI/GL Precision Tubes Crude Steel Capacity 5.00 3.50 mtpa Jharsugudha Netrabandha Integrated Steel Plant with Iron Ore Mine: 82mt 3.50 Captive Power Plant Reserves 2.75 Downs
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 China, Government Capex (INR tn)2 Production-Linked Crude Steel Crude Steel Finished Steel 667 Incentive Scheme1 Capacity
Slide 17: Near-term Growth to Take India Capacity to 37 mtpa
1 Near-term Growth to Take India Capacity to 37 mtpa Near-term growth in JSW Steel’s India steel capacity (mtpa) • 5mt Dolvi expansion commenced integrated operations in FY22 and was fully ramped-up within a year 1 BPSL Vijayanagar Expansion JISPL • 5mt brownfield expansion at Vijayanagar 37.0 – Val
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 Ranking(1) Leading position on global conversion cost curve – Conversion cost of c.$136/tonne in FY22 # 5 ranked in Asia Technology, analytics and innovation continue t
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 2 mines in Karnataka, 2 in Goa and 2 exploration blocks in Maharashtra in •
Slide 20: Steel Products for Diverse Applications
3 Steel Products for Diverse Applications Infra & Construction Consumer Durables Pipes & Tubes • Buildings (Resi. & Commercial) • Refrigerators • Roads • Air Conditioners Key Products • Bridges • Home Appliances • Metro & other Urban Infra • Tinplate for Packaging • Airports • Oil & Non-Oil Cans • H
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 & colou
Slide 22: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Tinplate coils and sheets with high strength and formability, used in food and non-food packaging • Al-Zn-Mg coated galvanized steel that offers 5x better protection than GI against moderate to aggressive corrosive environments • A
Slide 23: 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 24: JSW Steel: Making Cars Safer for You
3 JSW Steel: Making Cars Safer for You Focus on safer, lighter and fuel efficient cars • Indian automotive industry is evolving to adopt Door Impact beams B Pillars consumer demand for 5-star rated cars for safety Front Cross Member • JSW Steel is working closely with auto makers to make cars safer,
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 42% reduction of CO2 to Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process 1.95tC
Slide 26: Building a Strong Health & Safety Culture
4 Building a Strong Health & Safety Culture JSW Steel’s Vision 000 Safety Initiatives & Recognitions Zero Capability Building Initiatives: Zero Zero • 2,800+ employees certified as Safety Champions in major injury harm FY23 incidents • 2,185 Contractors evaluated for safety performance in FY23 LTIFR
Slide 27: Our Commitment to Society
4 Our Commitment to Society Improving Cancer Care Key Intervention Areas JSW Foundation has provided support to Tata Memorial Centre for the development of residential facilities for Health & cancer patients Agriculture Nutrition Water, Environment & Education Sanitation JSW School of Public Policy,
Slide 28: Our Commitment to Society
4 Our Commitment to Society Margondanahalli Lake Rejuvenation, Bangalore Progress of Skill Impact Bond Project Pre-restoration Post-monsoon 100k M3 10 Focus area Sectors 50,000 1 Lakh CubM Additional Water Storage Floating Wetlands Developed Job retention especially F&B, Retail, IT/ITES, Learners to
Slide 29: Initiatives & Recognitions
4 Initiatives & Recognitions Diversity and Women Empowerment Recognitions JSW Steel recognized as Sustainability Champion by worldsteel for 2023 for the 5th consecutive year JSW Steel has been recognized as a Supplier Engagement Women are operating Heavy Earth Moving Leader by CDP for Machinery such
Slide 30: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.59 2.75 6.56 4.13 6.38 3.79 6.24 2.59 6.04 2.52 2.49 2.50 2.60 2.41 2.45 2.45 5.66 2.36 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 F
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 JSW-JFE partnership Partnership overview Executive Directors • 14.99% minority stake bought by JFE in 2010 • Access to cutting edge technologies Jayant Acharya Gajraj Singh Rathore
Slide 32: Proven Track Record of Efficient Organic and Inorganic Growth
6 Proven Track Record of Efficient Organic and Inorganic Growth 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 • JSW
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) 12.63 12.56 15.80 16.27 16.69 16.06 15.08 18.96 23.62 167.0 147.9 21.86 17.69 14.68 15.55 15.60 14.90 14.95 12.25 85.0 80.4 12.03 73.4 73.9 53.1 60.7 46.2 FY15 FY16
Slide 34: Prudent Capital Allocation: 10 Year TSR CAGR of 28%, and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 28%, and Uninterrupted Dividends ROCE Uninterrupted Dividends (₹/share) 29.8% 20.0 15.0 19.6% 19.5% 16.4% 10.0 14.8% 3.4 5.0 7.60% 6.3% 9.6% 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
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 1.38x 1.48x 1.34x 3.75x 1.17x Bonds and 2.60x 2.61x 3.20x 0.83x 0.89x 2.40x Foreign INR debt, debentures, 1.45x currenc
Slide 36: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: May 2023 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 Strategic Democratize – Manufacturing & Mining (O&M, Quality) Transformation Value Lens Digitalization – Sustainability, Safety and Securit
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 Optimization Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 39: Mine-to-Customer: Technology-Led JSW Steel
Mine-to-Customer: Technology-Led JSW Steel DIGITAL BULK RAW MATERIAL (BRM) MGMT DIGITAL MANUFACTURING DIGITAL OUTBOUND SUPPLY CHAIN DIGITAL SALES & MARKETING 3 Digital Plant Data-Driven Decision-Making 1 4 6 Suppliers Outbound / Mines In-Plant Connected Digital Digital Sales & Marketing Logistics Wo
Slide 40: Future-Ready Digital Workforce
Future-Ready Digital Workforce Technology Learning Strategy Self-Paced Learning High Level Awareness In-depth Training Personalized Training Program Level Tier 0 Tier 1 Tier 2.1, 2.2, 2.3 Tier 3 • Self Learning in LMS / • Introduction to • Microsoft Azure • Role-based Certifications Digital Central
Slide 41: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: May 2023 41
Slide 42: Global Steel
Global Steel Crude Steel Production – Jan-Mar (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Mar CY21 Jan-Mar CY22 Jan-Mar CY23 CY22 CY23F (Oct 22) CY23F (Apr 23) CY24F (Apr 23) China Crude Steel Production (LHS) 150 10 -0.1% +2.3% Exports (RHS) 8 100 459 +6.1% 6 1,854 1,822 1,815
Slide 43: Indian Steel – Annual Trend
Indian Steel – Annual Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) FY22 FY23 Finished Semis Finished Semis +5.0% +13.3% 18.37 -54.6% +45.2% 4.88 120.29 126.26 119.86 105.75 7.02 8.34 4.84 1.00 13.49 1.62 0.17 4.67 6.02 6.72 Crude Steel Production Apparent Steel Consump
Slide 44: Strategic Priorities for FY24: Creating Shareholder Value
Strategic Priorities for FY24 Committed to sustainability targets, with sustainability at the core of everything Creating Shareholder Value Executing growth pipeline of 37mt steel making capacity in India End-to End Digitalisation by evolving from point projects to transformational projects Maintain
Slide 45: FY24 Guidance
FY24 Guidance All fig. in million metric tonnes FY24 Crude Steel Particulars Sales Production India Operations incl. Joint Control 25.50 24.20 JSW Steel USA Ohio 0.84 0.80 Total Combined Volumes 26.34 25.00 JSW Steel Corporate Presentation: May 2023 45
Slide 46: Annual India Capex Update
Annual India Capex Update 18,800 18,500 ₹ crore Actual Spent 14,214 14,625 FY23 FY24 FY25 FY26 Particulars ₹ Cr Unspent Capex including Creditors and Acceptances 34,629 New Growth, Cost Savings and Mining Projects 12,499 Sustenance Capex 4,797 Total 51,925 JSW Steel Corporate Presentation: May 2023
Slide 47: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Construction activities for all packages underway • Piping & Electricals commenced for all packages • Equipment erection commenced for all packages • Project to be completed by end of FY24 Coke Oven Plant • 1.5 mtpa Coke Oven battery: Batt
Slide 48: Key Project Updates – BPSL & Other Downstream
Key Project Updates – BPSL & Other Downstream Phase-II expansion from 3.5 to 5 MTPA • Civil work & Structural Erection work in progress in New Wire Rod Mill-2 and SMS-2 Project • Long lead-time items received at site, equipment erection started (New Wire Rod Mill-2 and SMS-2, PCI upgradation for BF-
Slide 49: 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 50: Awards & Recognitions in FY23
Awards & Recognitions in FY23 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
Slide 51: 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 52: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in