Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q3 FY21 Earnings Presentation
59 slides from Jindal Steel's earnings presentation, Feb 8, 2021
Slide 1: Exchange filing cover letter
inp, STEEL & POWER February 8, 2021 BSE Limited Corporate Relationship Department, 1st Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai ~ 400 001 corp.relations@bseindia.com Scrip Code : 532286 | National Stock Exchange of India Limited Exchange Plaza, 5" Floor, Plot
Slide 2: Investor Presentation 3Q FY21
Investor Presentation 3Q FY21 (February’ 21) 1
Slide 3: Table of Contents
TABLE OF CONTENTS S No. Content Slides 1 The Company 3-9 2 Overview & Business Segments 10-19 3 Power Business 20-25 4 Global Ventures 26-32 5 Financial & Operational Highlights 33-40 6 Facilities at a glance 41-46 8 CSR Initiatives 47-54 9 Rewards & Recognitions 55 10 Contact Us 56 2
Slide 4: Ownership Structure - O P Jindal Group
OWNERSHIP STRUCTURE - O P JINDAL GROUP O P Jindal Group Jindal Saw JSL/JSL Hisar JSW Steel/JSW Energy Jindal Steel & Power (JSPL) Mr. P.R. Jindal Mr. Ratan Jindal Mr. Sajjan Jindal Mr. Naveen Jindal 3
Slide 5: JSPL - Formidable Steel & Power Player
JSPL - FORMIDABLE STEEL & POWER PLAYER Capex cycle completed – on path to achieve multifold earnings growth Projects at strategic locations – in proximity to raw materials, end markets and evacuation infrastructure A comprehensive diversified long products portfolio with several unique high value ad
Slide 6: Key Milestones During Our Journey
KEY MILESTONES DURING OUR JOURNEY • Commissioned India’s largest and most modern 4554 cu.m. • Resumption of Blast Furnace at Angul. CGP – DRI • Completed 3 MTPA Basic Oxygen Furnace at Angul. All facilities operations 2021 wrt 5 MTPA Steel Capacity at JSPL Angul is completed. • Commissioning of 2 co
Slide 7: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS Naveen Jindal Shallu Jindal Chairman Non Executive Director • Experience: 22 years • Qualification: MBA (University of Texas) R.V. Shahi Arun Kumar Purwar Sudershan Kumar Garg Hardip Singh Wirk Independent Director Independent Director Independent Director Independent
Slide 8: Best in Class Management
…& BEST IN CLASS MANAGEMENT V.R Sharma Managing Director-JSPL • Experience: >38 years. Akhauri Sinha Sudhanshu Saraf Chairman- JPL & Director Director Transformation– JSPL Finance -JSPL • Experience: >30 years • Experience: >37 years Hemant Kumar Manju Dudeja CFO-JSPL CFO-JPL • Experience: >28 years
Slide 9: Moving Towards Plural Leadership
MOVING TOWARDS PLURAL LEADERSHIP Strategic Governance Structure Operational Governance Structure ManCo UniCo Business Segments For each For each Business Location Core Group Management Executive Team Committee Steel & Cement Senior Management Committee Power Global Ventures Implementation of Strateg
Slide 10: Shareholding of JSPL from Dec'17
SHAREHOLDING OF JSPL FROM DEC’17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 Promoters 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% 60.52% 60.40% 60.40% 60.48% 60.48% 60.47% 60.47% Institutional Investors 23.60% 28.76
Slide 11: Business Segments
BUSINESS SEGMENTS Steel Power Global Ventures Current Capacities – Domestic & Global 8.6 MTPA Steel IPP – 3400MW Coal & Iron Ore 3.11 MTPA Iron ore CPP – 1634 MW Mines 9 MTPA Pellet Plant 10
Slide 12: Integrated Operations with Multiple Point of Sale
INTEGRATED OPERATIONS WITH MULTIPLE POINT OF SALE Raw materials Intermediate inputs Processing End-products Coal from mines Coal washery Washery rejects Char/Flu gases Rotary kilns Power plant Electricity Wire Rod & Wire Rod & Pelletisation Sponge Bar Mill Rebar Pellets plant iron Plates & Iron ore
Slide 13: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (8.45 MTPA) (8.60 MTPA) (6.55 MTPA) WRM 0.60 MTPA DRI 3.12 MTPAin deail Capacity (Wire Rod Mill) (Direct Reduced Iron) Rail Mill 0.75 MTPA SMS 8.60 MTPA (Steel Melting Shop) BSM 0.60 MTPA (Beam & Structure Mill) BF 5.33 MTPA
Slide 14: Detailed Plant Wise Capacities
DETAILED PLANT WISE CAPACITIES Raigarh Angul Barbil Patratu JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) BF 2.125 CGP 225,000 MTPA Nm3/Hr DRI 1.32 MTPA BF 3.2 MTPA WRM Capacity in deail 0.60 SMS 3.6MTPA DRI 1.8 MTPA MTPA Iron Plate Mill SMS 2.5 MTPA Pellet Tamnar Ore 1.00 MTPA Plant 3400
Slide 15: Manifold Growth in Capacity in Last 6 Years
MANIFOLD GROWTH IN CAPACITY IN LAST 6 YEARS FY ‘14 FY ‘20 STEEL - INDIA 3 MTPA 8.6 MTPA ~2.86x POWER 1,000 MW 3400 MW 3.4x PELLET 4.5 MTPA 9 MTPA ~2x All major capex completed – scale of growth is approx. Three Times 14
Slide 16: Growth on Track
GROWTH ON TRACK PRODUCTION IN FY19 PRODUCTION IN FY20 GROWTH STEEL – INDIA* 5.59 MT 6.30 MT 13% ROM- MOZAMBIQUE 1.71 MT 2.50 MT 47% (COKING COAL) PELLET 7.08 MTPA 7.28 MTPA 3% ROM-SOUTH AFRICA (ANTHRACITE COAL) 0.34 MT 0.43 MT 27% *incl. Pig Iron ; 15
Slide 17: JSPL Product Range
inpaL”” STEEL & POWER Rail Parallel Flange Beams & Columns Channei Track Rail: |RS 52, VIC 6O(EIKE2), UIC S4E Sections: U8, UC, NPB, WPB, IPE and HE series. Sizes: 75mm to 400mm Crane Rails: CR 80, CR 100 Size range: 180m AAAAAAAAAAAAAAAANAANNNAD ALLER LELE LES bh etecheteteter ALARA RRA ANAND ; dat
Slide 18: JSPL Product Range
FLAT PRODUCTS Plates Width: 1500mm to 4900mm Thickness: 5mm to 150mm Coils Width: 150mm to 2500mm Thickness: Smm to 25mm inpaL”” STEEL & POWER INNOVATIVE PRODUCTS Fabricated Structures Cut & Bend Sections: H-type Seam, I-type Beams, Box Sections and Customized and Ready to Use Star Coulums TMT Rebar
Slide 19: Special Grade Plates - Angul
SPECIAL GRADE PLATES – ANGUL ▪ Developed steel grades for various critical applications like boilers, ship building, petroleum pipes, high strength grades for automotive and earth movers, structural steel for oil exploration platforms, grades for making warships , ballistic launch applications and b
Slide 20: Extensive Sales and Distribution Network
EXTENSIVE SALES AND DISTRIBUTION NETWORK Plants Distributors Stockyards Pan India presence with multiple customer touch points 19
Slide 21: Power Business
inpaL”” STEEL & POWER POWER BUSINESS 20
Slide 22: Power Capacities at a Glance
POWER CAPACITIES AT A GLANCE Independent Power Projects (IPP) Capacity Configuratio Project Fuel Status (MW) n Tamnar 1 1,000 Coal 4x250 MW Operational Tamnar 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh Tamnar Capacity Angul Project Fuel Configuration Status (MW) D
Slide 23: IPP - Jindal Power Limited
IPP - JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I EUP -II EUP -III 1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600) 22
Slide 24: Key Contractual Arrangements for JPL
KEY CONTRACTUAL ARRANGEMENTS FOR JPL TAMNAR-I, 1,000 MW (EUP I) TAMNAR-II - 1,200 MW (EUP II) TAMNAR-II - 1,200 MW (EUP III) ▪ Long term linkage from ▪ Coal sourced through – ▪ Coal sourced through – Mahanadi Coal Limited FSA market purchase and e- market purchase and e- (MCL) and South Eastern auct
Slide 25: PPA Arrangements
PPA ARRANGEMENTS PERIOD QUANTUM PROJECT BUYER TYPE FROM TO (MW) TAMNAR II Tamil Nadu Long Term Feb-14 Sep-28 400 (PHASE 1) TAMNAR II Long Term Jun-16 May-41 200 (PHASE 1) KSEB TAMNAR II Long Term Oct-17 Sep-42 150 (PHASE 1) TAMNAR II Long Term 60 (PHASE 1) Throughout commercial Chhattisgarh operatio
Slide 26: JPL Financials
JPL FINANCIALS Net Sales Generation Cash Profit Particulars (Rs. Cr.) (MU) (Rs. Cr.) Year 2019-20 3758 9583 961 Year 2018-19 3858 10,396 816 Year 2017-18 4,059 10,905 778 Year 2016-17 3,119 9,176 656 Year 2015-16 2,997 9,542 706 Year 2014-15 3,228 10636 523 Year 2013-14 2,457 8282 1,386 Year 2012-13
Slide 27: Global Ventures
GLOBAL VENTURES Corporate Office, Jindal Africa 26
Slide 28: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS MOZAMBIQUE, AFRICA ■ 5 MTPA coal mine in Mozambique’s coal-rich Moatize region SOUTH AFRICA, AFRICA AUSTRALIA ▪ JSPL’s Kiepersol Colliery produces Anthracite coal, ■ Wollongong Coal Ltd which sold domestically and internationally. comprises of two coking coal mine
Slide 29: Holding Structure for Global Operations
HOLDING STRUCTURE FOR GLOBAL OPERATIONS Jindal Steel & Power Ltd Listed Operating Entity in India Jindal Steel & Power (Mauritius) Ltd Holding company for overseas business Australia South Africa Mozambique Coking Coal Anthracite Coal Thermal/ Coking Coal 28
Slide 30: Kiepersol Colliery, South Africa
KIEPERSOL COLLIERY, SOUTH AFRICA An Underground Anthracite and Lean Bituminous Coal mine ⮚ Location: Piet Retief in Mpumalanga province, South Africa ⮚ Resources : Up to 40 MT ⮚ Reserves: 22 MT ⮚ Products : Anthracite coal ⮚ Mining Capacity : Can be expanded to 1.2 MTPA capacity annually 29
Slide 31: Chirodzi Mine - Mozambique, Africa
CHIRODZI MINE - MOZAMBIQUE, AFRICA Open Cut Coking & Thermal Coal Mine ⮚ Location: Chirodzi, Mozambique (105 kms from Tete) ⮚ Resources : 2,000 MT ⮚ Reserves: 750 MT ⮚ Products : Semi Hard coking coal , High Grade Thermal Coal ⮚ Mining Capacity : 5 MTPA 30
Slide 32: Wollongong Coal Ltd., Australia
WOLLONGONG COAL LTD., AUSTRALIA Two Mines with unmatched location & strategic advantages ⮚Location: Russell Vale & Wongawilli ⮚ Reserves : 125 MT ⮚ Products : High Quality Coking Coal ⮚ Logistics : Port Kembla - Less than 20 kms 31
Slide 33: Other Iron Ore Assets
OTHER IRON ORE ASSETS Namibia Melmoth (South Africa) Resources ▪ 986 million tonnes ▪ 1,155 million tonnes Iron ore content ▪ 70.9% ▪ 68.4% Yield ▪ 27.0% ▪ 25.2% JSPML stake ▪ 85% ▪ 74% Development ▪ Scoping and exploration study ▪ Pre feasibility study completed stage completed Nearest port ▪ 460 k
Slide 34: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE 33
Slide 35: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q2 FY 21 Q3 FY 21 PARAMETER Q3 FY 21 Q3FY 20 9,804 11,704 Gross Revenue* 11,704 8,430 8,990 10,534 Net Revenue 10,534 7,526 2,702 4,252 EBITDA 4,252 1,574 873 869 Depreciation + Amortization 869 906 798 728 Interest 728 909 1,179 3,020 PBT (Before Exc
Slide 36: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q2 FY 21 Q3 FY 21 PARAMETER Q3 FY 21 Q3 FY 20 8,667 9,906 Gross Revenue* 9,906 7,542 7,859 8,738 Net Revenue 8,738 6,640 2,435 3,908 EBITDA 3,908 1,352 568 566 Depreciation + Amortization 566 570 554 529 Interest 529 634 1,325 2,815 PBT (Before Exceptio
Slide 37: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q2 FY 21 Q3 FY 21 PARAMETER Q3 FY 21 Q3 FY 20 990 1,393 Turnover 1,393 784 302 303 EBITDA * 303 257 260 260 Depreciation + Amortization 260 292 209 197 Interest 197 219 (58) (46) PBT (46) (111) (1) (33) PAT (33) (83) 317 366 Cash Profit 366 182 2,744 4,180 Generati
Slide 38: Revenue & EBITDA FY12-FY20
REVENUE & EBITDA FY12-FY20* (Figures in Rs. Crores) REVENUE Standalone Consolidated 39,388 36,944 27,844 22,706 18,350 19,943 20,070 19,626 18,632 27,730 26,228 17,523 15,114 14,691 13,687 15,502 13,518 12,852 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 EBITDA (Figures in Rs. Crores) Stand
Slide 39: Operational Performance
OPERATIONAL PERFORMANCE Steel Production* Steel Sales* (*Incl .Pig iron)(Figures in Million Tonnes) 38
Slide 40: JSPL Consolidated Debt Bridge - 3QFY21
JSPL CONSOLIDATED DEBT BRIDGE- 3QFY21* 30,000 (Rs. In Crores) 1,339 28,000 62 1,887 26,000 28,910 24,000 25,621 22,000 20,000 Net Debt as on 30th Sep20 Debt reduction Fx Impact Addition in Cash & Cash Net Debt as on 31st Dec'20 Equivalents *Provisional numbers 39
Slide 41: Debt Profile Entity-Wise as on Dec'20
Debt Profile Entity-Wise as on Dec‘20 Debt Rs.15,525 Crs Jindal Steel & Power Ltd. The listed operating entity with all steel plants, pellet plant and captive power plants in India Jindal Steel & Power (Mauritius) Jindal Power Ltd. Ltd. Debt Rs. 6,532 Crs Debt Rs. 4,381Crs Independent power plants i
Slide 42: Facilities at a Glance
JINDAL STEEL & P R FACILITIES AT A GLANCE
Slide 43: Global Presence in Attractive Markets
GLOBAL PRESENCE IN ATTRACTIVE MARKETS Raigarh Jeraldaburu Patratu Cameroon Tamnar Barbil Angul Tensa Botswana Mozambique Bailadila Australia South Africa Coal mine Iron ore mine CPP Steel plant IPP Presence in resource rich regions well connected with evacuation infrastructure 42
Slide 44: India
INDIA inpaL”” STEEL & POWER 43
Slide 45: Chhattisgarh
CHHATTISGARH Integrated Steel Plant, Raigarh Steel Fabrication Plant, Punjipatra Heavy Machinery Division, Raipur Tamnar, 3400 MW Power plant 44
Slide 46: Odisha
ODISHA Integrated Steel Plant , Angul Pellet Plant, Barbil Iron Ore Mine, Tensa 45
Slide 47: Jharkhand
JHARKHAND Wire Rod & Bar Rod Mill , Patratu 46
Slide 48: Making Sustainability a Focus Priority
MAKING SUSTAINABILITY A FOCUS PRIORITY 47
Slide 49: COVID-19 Response: JSPL Remains Committed to Serve the Nation
COVID 19 RESPONSE: JSPL REMAINS COMMITTED TO SERVE THE NATION
Slide 50: Pillars of CSR
PILLARS OF CSR HEALTH & NUTRITION ENVIRONMENT & AGRICULTURE DRINKING WATER & SANITATION SPORTS EDUCATION ART & CULTURE SKILL EDUCATION RURAL INFRASTRUCTURE SUSTAINABLE LIVELIHOOD & SOCIAL INCLUSION WOMEN EMPOWERMENT 49
Slide 51: Sustainable CSR FY 2020-21 (Till Dec 2020)
SUSTAINABLE CSR FY 2020-21 (Till Dec 2020) DRINKING WATER & HEALTH & NUTRITION COVID 19 Care EDUCATION SKILL BUILDING SANITATION 1 Lakh + 5 Lakh + 18 Lakh + 12000+ 1000+ People benefitted from our special intervention to defeat Adolescent girls and women COVID19 (Mission Zero Hunger People provided
Slide 52: Sustainable CSR FY 2020-21 (Till Dec 2020)
SUSTAINABLE CSR FY 2020-21 (Till Dec 2020) ENVIRONMENT & SUSTAINABLE LIVELIHOOD & COMMUNITY SOCIAL INCLUSION SPORTS AGRICULTURE WOMEN EMPOWERMENT INFRASTRUCTURE 3000+ 5000 + 12000+ 600+ 1000000+ Parentless children supported with shelter Sports talents trained and homes, multipurpose Community Plant
Slide 53: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS 52
Slide 54: Health & Safety Best Practices
HEALTH & SAFETY BEST PRACTICES TOOL BOX MEETINGS SAFETY AWARDS/REWARDS MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS 53
Slide 55: Health & Safety Best Practices: Preparedness for COVID-19
HEALTH & SAFETY BEST PRACTICES PREPAREDNESS FOR COVID-19 MISSION ZERO HUNGER DISTRIBUTION OF ESSENTIALS DEDICATED HOSPITAL FOR COVID CARE SPREADING AWARENESS 54
Slide 56: Recent Awards & Recognitions
RECENT AWARDS & RECOGNITIONS • JSPL Foundation's Chairperson Smt. Shallu Jindal has been awarded with the Golden Peacock Award for Social & Cultural Leadership FY 2019-20 • Listed as Most Honored company in Basic Material Sector by All Asia Executive Team Ranking 2020,Institutional Investor Research
Slide 57: For any information please contact
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com Mr. Rajesh Lachhani– GM, Investor Relations Tel : +91 124-661 2015 Mobile:+91 97429 47821 Email: - rajesh.lachhani@jindalsteel.c
Slide 58: Disclaimer
DISCLAIMER This presentation may contain certain forward looking statements concerning Steel & power 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
Slide 59: Thank You!
To the Taskforce guarding INDIA against the Corona Virus Pandemic Thank You ! 58