Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (June 2022)
55 slides from Jsw Steel's investor presentation, June 2022
Slide 1: JSW Steel Limited Corporate Presentation June 2022
JSW Steel Limited Corporate Presentation June 2022 JSW Steel Corporate Presentation: June 2022
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 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 3
Slide 4: Agenda: Sustainability
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 4
Slide 5: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Business Responsibility And Climate Change: Biodiversity: No Net Loss for Biodiversity Sustainability Committee • Aligned to India’s Nationally Determined Contributions for Climate Change as per Ms. Fiona Pa
Slide 6: Climate Change: Emission Target and Initiatives
Climate Change: Emission Target and Initiatives Derivation of carbon emission target for 2030 Planned/ Potential initiatives to reduce CO2 intensity • The Sustainable Development Scenario (SDS) (a) requires direct Energy Transition from thermal to Renewable in steel making emission intensity of crud
Slide 7: Agenda: Overview
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 7
Slide 8: JSW Group – Overview
JSW Group – Overview * • Power producer with installed capacity of 4.6 GW • Engaged in development and (Hydro, Renewable and operations of ports Thermal) • Operational capacity 110 mtpa * • Growing to 20 GW by 2030 • Operations across East, West with 85% renewable & Southern coasts of India portfoli
Slide 9: JSW Steel – Among India's Leading Steel Manufacturers
JSW Steel – Among India’s Leading Steel Manufacturers One of the leading steel players in Diversified product portfolio Integrated manufacturing process India • Extensive portfolio of products – • Integrated steel manufacturing • Most geographically diversified steel Hot rolled coil, cold rolled coi
Slide 10: Transformational Growth and Value Creation
Transformational Growth and Value Creation Capacity (mtpa) Total revenue (₹ 000’s Cr) EBITDA (₹ 000’s Cr) CAGR FY02-22: 15% CAGR FY02-22: 25% CAGR FY02-22: 28% 25.8 27.0 147.9 39.0 18.0 18.0 18.0 18.0 85.0 80.4 19.0 20.1 73.4 73.9 14.8 7.8 11.9 19.5 4.2 1.6 1.6 0.3 FY02 FY10 FY18 FY19 FY20 FY21 FY22
Slide 11: Agenda: Key Investment Highlights
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 11
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Size, Scale & Growth Leading steel producer in India with near-term growth to take 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 downstream c
Slide 13: Leading and Most Geographically Diversified Steel Producer in India
1 Leading and Most Geographically Diversified Steel Producer in India India International Footprint Europe Rajpura BPSL Chandigarh Bawal Piombino, Italy BPSL Kolkata Kalmeshwar Plate & Coil Mill, Anjar USA Khopoli Vasind & Tarapur BPSL Jharsuguda: 2.75 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa (JISPL)
Slide 14: 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 2.75 mtpa Jharsugudha Netrabandha Integrated Steel Plant with Iron Ore Mine: 82mt 3.50 Captive Power Plant Reserves 2.75 Downst
Slide 15: Strong Fundamentals for India Steel Demand
1 Strong Fundamentals for India Steel Demand Significant room for growth in steel India Steel: Strong Fundamentals (mt) consumption in India Recent changes of export and import duties on the sector Crude Steel Crude Steel Finished Steel China, Capacity Production Demand 667 • Govt. of India announce
Slide 16: 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) 1 • 5 mtpa Dolvi expansion commenced integrated operations in FY22 JISPL Vijayanagar Expansion BPSL 37.0 • 5 mtpa brownfield expansion at Vijayanagar 1.5 1.50 – Value-accretive with low c
Slide 17: Lowest Cost of Conversion in India, One of the Lowest Globally
2 Lowest Cost of Conversion in India, One of the Lowest Globally Resilient business model based on continued focus on cost leadership WSD Aggregate Ranking(a) Leading position on global conversion cost curve – Conversion cost of c.$136/tonne in FY22 # 4 ranked in Asia Technology, analytics and innov
Slide 18: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 14 Captive iron ore mines ensuring adequate raw material supply Raw material security • Won 6 iron ore mines in Karnataka through auctions in 2016 and Steel Plants 2018, and 3 mines in FY20 Karnataka – 9 mines Mines – Targeting 6-7 mtpa in FY22 from the Karnataka m
Slide 19: Strong Margins Enhanced by Downstream Value Added Products
Strong Margins Further Enhanced by Significant Downstream 3 Capacities Producing Value Added and Special Products Product Category Hot Rolled Coated Products Colour Coated Tin Plate Cold Rolled Electrical Steel Alloy Steel Products Products Products Coil & Sheets Products Construction, Pipes & Tubes
Slide 20: Delivering Sustainability With Our Value Added Products (1/2)
3 Delivering Sustainability With Our Value Added Products (1/2) • One of the largest domestic suppliers of Tinplate products • Adding 250KTPA capacity at Tarapur, Maharashtra to meet the surging demand of food packaging industry • Brand Platina is enabling import- and plastic- substitution • Meeting
Slide 21: Delivering Sustainability With Our Value Added Products (2/2)
3 Delivering Sustainability With Our Value Added Products (2/2) • Key contributor to India’s commitment to Renewable energy • Brand Galvos being widely used in solar structure installations, replacing imports Electrical Steel • Cold Rolled Non-Grain Oriented: Manufacturing with technology from All f
Slide 22: Sustainability at the Core of the Enterprise
Sustainability at the core of the enterprise. Actively pursuing 4 climate change agenda SD Targets FY05 FY30 Targets Improvement Strategic Approach • Transition from thermal to renewable energy • Specific Energy • Reduction of fuel rate in BF and DRI GCal/tcs 6.94 5.65* 19% Climate • Increased use o
Slide 23: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 2.75 4.13 6.59 6.56 3.79 6.38 6.24 2.59 2.60 2.41 2.45 2.52 2.50 6.04 2.49 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 * FY18 FY19 FY20 FY21 FY22* Dus
Slide 24: Sustainability Initiatives & Recognitions
4 Sustainability Initiatives & Recognitions Initiatives Recognitions 225 MW of Renewable Energy For the 4th consecutive year JSW Steel Solar power supply from 225MW recognised as a Sustainability Champion by commenced at Vijayanagar, as part of World Steel Association, for its contribution the 958MW
Slide 25: Health & Safety
4 Health & Safety JSW is committed to providing a safe and healthy working environment and achieving an injury- & occupational illness-free workplace. Our vision is to achieve ‘Zero Harm’ Building a Culture of Health & Safety JSW’s Roadmap to Vision 000 Zero Zero Zero major injury harm incidents Hea
Slide 26: Empowering Our Communities
4 Empowering Our Communities India’s First Skill JSW Foundation becomes member of New Initiatives & Updates Impact Bond United Nations Global Compact • Impact bonds are innovative and results- based finance mechanism that leverage Inculcating Critical Additional Water private sector capital and expe
Slide 27: 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 Seshagiri Rao M.V.S Jayant Acharya
Slide 28: 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 29: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Operating Revenues (₹ 000’s Cr) 146.4 12.17 12.63 12.56 15.80 16.27 16.69 16.06 15.08 17.62 15.55 15.60 16.34 14.68 14.90 14.95 11.86 12.03 12.25 84.8 79.8 73.2 73.3 60.5 51.2 53.0 46.0 FY14 FY
Slide 30: Prudent Capital Allocation: TSR and Uninterrupted Dividends
Prudent Capital Allocation: 10 Year TSR CAGR of 38%, 7 and Uninterrupted Dividends Uninterrupted Dividends ROCE 29.8% 20.0 17.35 19.6% 19.5% 15.0 16.4% 14.8% 10.0 11.9% 9.6% 5.0 6.3% 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY15 FY16 FY16 FY18 FY19 FY20 FY21 FY22 Market cap (₹
Slide 31: Strong Balance Sheet and Access to Diversified Funding Sources Globally
8 Strong Balance Sheet and Access to Diversified Funding Sources Globally Net Gearing (ND/Equity) well Leverage (ND/EBITDA) well Diversified under the stated cap of 1.75x under the stated cap of 3.75x Funding Sources 1.75x 4.50x 1.38x 1.48x 1.34x 3.75x 1.17x INR debt, 2.60x 2.40x 2.61x Loans and 0.8
Slide 32: Agenda: Digitalisation at JSW Steel
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 32
Slide 33: Digitalisation: JSW's Approach & Impact Created
Digitalisation: JSW’s Approach & Impact Created Wave 4 and Vision 2025 Scale digital to best-in-class: – Enhance Sales, Marketing, Customer service and eCommerce – Existing plants: Continue digital projects – New plants: BPSL, ACCIL, JISPL – Support functions: HR, Finance, Logistics, Commercial – In
Slide 34: JSW's Digital Focus Areas
JSW’s Digital Focus Areas Additional Focus Technologies Used Core Systems (SAP, SF, GCP, Mining Azure, Darwin Box), IoT, AI/ML, Analytics, Cloud/Edge Computing, RPA-leveraging JSW Safety, Security, Sustainability led Digital team as well as Startup Finance Governance R&D Primary Supply ecosystem Foc
Slide 35: Industry 4.0 for Digital Steel Plants and Mining
Industry 4.0 for Digital Steel Plants and Mining AI Enabled Security Surveillance and Safety System Integrated Control Tower Artificial Cloud Fuel management system (Mining Dashboards (Several plants) Intelligence Computing business) Yard Management System Track & Trace- Outbound Process Level-2 Aut
Slide 36: Initiatives Beyond Industry 4.0 Leading to Value Generation
Initiatives Beyond Industry 4.0 Leading to Significant Value Generation JSW’s Digital transformation along B2B sales direct 3 dimensions connect and eCommerce (JSW One for MSME) Micro-market based sales Advanced spend (JSW One for cube analytics – Retailers) IoT category rooms (procurement) Outbound
Slide 37: Successful Digital Initiatives for Safety and Sustainability
Successful Digital Initiatives for Safety and Sustainability CRM-2: Dross Cleaning Robot for Laser Scanner for LF Ladle Productivity and Employee Safety Laser scanning in ladles improves safety and • Zinc dross in coated steel plants is valuable extends Steel ladle life from financial and safety per
Slide 38: Digital Logistic Management System (DLMS) - Odisha Mines
Digital Logistic Management System (DLMS) - Odisha Mines Non-DLMS DLMS Integration with i3MS Parking Management 1 5 Permit details generated in i3MS (Day of despatch activities) and fetched Entry control through RFiD authentication and Boom Barrier/ 2 Integration with SAP traffic lights DO creation
Slide 39: Agenda: Appendix
Agenda Sustainability 4 Overview 7 Key Investment Highlights 11 Digitalisation at JSW Steel 32 Appendix 39 JSW Steel Corporate Presentation: June 2022 39
Slide 40: Global Steel
Global Steel Crude Steel Production – Jan-Apr (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-Apr CY20 Jan-Apr CY21 Jan-Apr CY22 CY21 CY22F (Oct 21) CY22F (Apr 22) CY23F (Apr 22) China Crude Steel Production (LHS) 150 10 -7.1% +0.4% Exports (RHS) 8 1,896 1,881 100 1,840 1,834 0% 66
Slide 41: Indian Steel – Annual Trend
Indian Steel – Annual Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) FY 21 FY 22 Finished Semis Finished Semis +15.9% +11.4% -4.0% +5.7% 18.37 120.01 5.04 17.39 103.55 94.89 105.75 4.88 0.29 4.84 6.60 0.17 10.78 13.49 4.75 4.67 Crude Steel Production Apparent Steel Consu
Slide 42: Indian Steel – Quarterly Trend
Indian Steel – Quarterly Trend Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q4 FY21 Q4 FY22 Finished Semis Finished Semis +5.9% -1.7% YoY Trend -22.3% 30.13 31.92 1.62 9.3% 29.49 29.00 1.26 3.89 3.56 0.08 0.72 0.05 1.09 1.54 1.21 3.17 2.47 Crude Steel Production Apparent Ste
Slide 43: FY23 – Key Strategic Priorities & Outlook
FY23 – Key Strategic Priorities & Outlook • Committed to Sustainability targets with focus on 5 key areas: Climate Change, Water Security, Waste, Air Emissions, Biodiversity • Maintain healthy margins despite challenging external environment: • Leverage low conversion cost advantage • Optimise raw m
Slide 44: FY23 Guidance
FY23 Guidance All fig. in million metric tonnes FY23 Crude Steel Particulars Sales Production Consolidated Indian Operations 23.60 22.60 Joint Control Entity: JSW Ispat Special Products Ltd. 0.70 0.70 Indian Operations incl. Joint Control 24.30 23.30 JSW Steel USA Ohio 0.70 0.70 Total Combined Volum
Slide 45: Annual Capex Update
Annual Capex Update ₹ crore Actual Spent 20,000 19,124 14,198 9,728 FY22 FY23 FY24 FY25 Particulars ₹ Cr Unspent Capex including creditors & acceptance 33,259 Sinter plant and other facilities to support 5mtpa expansion at Vijayanagar 1 5,000 LRPC2 and Other Projects 1,401 Sustenance Capex 4,704 Sub
Slide 46: Key Project Updates - Vijayanagar
Key Project Updates - Vijayanagar 5mtpa brownfield project • Long lead-time items ordered, Letters of Credit established • Construction activities for all packages underway • Project to be completed by FY24 CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) • 2nd CGL line of 0.45mtpa commissi
Slide 47: Key Project Updates – BPSL
Key Project Updates – BPSL Phase-I expansion to 3.5 MTPA (By Q2 FY23) • EAF Modification: Completed in Q4 FY22 • SMS1 Caster Modification: Caster 1&2 Project comissioned in Q1 FY23 • Completion of Sinter Plant-2: Furnace light up done, to be completed by Q2 FY23 Phase-II expansion to 5 MTPA (By FY24
Slide 48: Key Project Updates – Downstream
Key Project Updates – Downstream Vasind and Tarapur: Downstream projects • 0.5mtpa Continuous Annealing Line at Vasind o To be commissioned by June 2022 • Second Tinplate line of 0.25 mtpa at Tarapur o All major equipment installation completed. To be commissioned by June 2022 Other Downstream proje
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: JISPL Merger with JSW Steel: Transaction Overview (1/3)
JISPL Merger with JSW Steel: Transaction Overview (1/3) Transaction Structure Proposed Swap Ratio Approvals and Timeline • JSW Ispat Special • JISPL shareholders to • Transaction is subject to Products Ltd (“JISPL”) and receive 1 share of JSW shareholders, creditors its holding company Steel for eve
Slide 51: JISPL Merger with JSW Steel: Transaction Overview (2/3)
JISPL Merger with JSW Steel: Transaction Overview (2/3) JSW Steel Limited AION Investments Pvt II Ltd Current Structure 48% 52% (effective stake) 100% Creixent Special Steels Ltd JTPM Atsali Ltd 5% 48% Post Transaction Shareholding of JSW Steel Pre-Merger Proforma 47% JISPL 31st Mar 22 Post-Merger P
Slide 52: JISPL Merger with JSW Steel: Successful Turnaround (3/3)
JISPL Merger with JSW Steel: Successful Turnaround (3/3) A consortium of JSW Steel & AION completed the acquisition of Key Metrics 2018 the distressed Monnet Ispat & Energy Ltd (Now JISPL). Operating Revenue (₹ Cr) 6,061 Restarted TMT operations, introduced JSW Neosteel brand under licensing arrange
Slide 53: Awards & Recognitions
Awards & Recognitions • Rated at Leadership Level (A-) by CDP • JSW Steel included in the Dow Jones Sustainability Index for Emerging Markets • WSA Steel Sustainability Champions for 4th consecutive year in 2021 • Corporate Governance & Sustainability Vision Awards 2020 2020 & 2021 • “Steelie Award“
Slide 54: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Solar Project: Contributed 9.1 GW High Speed Rail (Mumbai - Ahmedabad) Wind Project: Contributed 620MW c.90kT supplied Expressways and Highways: Over 1,145km Metro Projects: c.41km of metro project of roads. Over 121km of expressways lines (Mumb
Slide 55: Investor Relations Contact
Investor Relations Contact: ir.jswsteel@jsw.in JSW Steel Corporate Presentation: June 2022 55