Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q2 FY2020 Earnings Presentation
35 slides from Jindal Steel's earnings presentation, Nov 5, 2019
Slide 1: Jindal Steel & Power exchange intimation cover letter
JINDA STEEL & POWER November 5, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5" Floor, ‘1s Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (F), Dalal Street, Fort, Mumbai - 400 0
Slide 2: Q2 FY'20 Industry Update & Key Performance Highlights
Q2 FY’20 Industry Update & Key Performance Highlights 5th November, 2019
Slide 3: This presentation may contain certain forward looking statements concerning Steel & power sector ,
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 such forwa
Slide 4: Q2 FY'20 Highlights
Q2 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 5: Highest Ever Revenue & EBITDA in FY19
HIGHEST EVER REVENUE & EBITDA IN FY19 (Figures in Rs. Crores) JSPL achieved REVENUE (Rs. In Cr) ever highest Standalone Consolidated 39,388 Revenue in FY19 27,844 22,706 18,350 19,943 20,070 19,626 18,632 27,730 17,523 15,114 14,691 15,502 13,518 13,687 12,852 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 6: JSPL Consolidated Debt Bridge QoQ
JSPL CONSOLIDATED DEBT BRIDGE QoQ DEBT BRIDGE 2QFY20 (Rs. In Cr.) 45,000 1,313 158 40,000 351 35,000 30,000 25,000 20,000 37,621 36,501 15,000 10,000 5,000 - Net Debt as on 30th Jun'19 Debt reduction Fx Impact(Addition due to FX ) Movement in Cash & Cash Net Debt as on 30th Sept'19 Equivalents
Slide 7: Q2 FY'20 Industry Update
Q2 FY’20 INDUSTRY UPDATE HIGHLIGHTS COMPANY UPDATE
Slide 8: JSPL Focusing: Sustainable Value Creation
JSPL Focusing: Sustainable Value Creation Challenging • Weak Steel Demand amid softer Macro Economic condition Market Condition • Liquidity issues in domestic market. • Every Penny Counts, Almost Nil Capex • Cost Saving initiative continue to be thrust area Disciplined • Focus on Value added Sales &
Slide 9: World Economy: A Weakening Expansion
World Economy : A Weakening Expansion > GDP Growth & Projections Projection Global GDP revised downward to 2.6% for 2019 7.5 7.5 7.5 Trade and manufacturing showing signs of marked 2019f 2020f 2021f weakness 6.2 6.1 6.0 Deceleration in global investment 4.6 4.6 Fed’s accommodative policies a
Slide 10: Raw Material Prices Remain Firm, Supporting Steel Prices
RAW MATERIAL PRICES REMAIN FIRM, WHICH SUPPORTED THE STEEL PRICES. Heavy rain in Brazil Rio Tinto cuts the FY 19 CFR China ($/MT) & volume guidance again > Iron Ore : Chinese Record Cyclone Veronica high steel In Australia 120 production • Seaborne Iron ore prices The Incident 109 remain strong due
Slide 11: Power Business
POWER BUSINESS Power Requirement v/s Availability (in BUs) Sector-wise PLF (%) 1274 90 1300 86 85 1195 85 82 1143 1268 84 81 79 1200 1114 80 1069 1187 76 75 74 73 1100 1135 71 72 73 996 1002 1091 70 67 70 71 1000 937 1031 68 66 65 62 862 960 64 61 900 831 60 59 60 909 56 60 58 55 56 858 55 56 800 54
Slide 12: IEX Clearing Price Trend
IEX CLEARING PRICE TREND 6.30 RTC Power Exchange Prices – W3 Region (Rs./kWh) 5.73 5.30 4.69 4.57 4.30 FY 15-16 3.97 FY 16-17 3.68 4.02 FY 17-18 3.58 3.45 3.33 3.33 FY 18-19 3.68 3.68 3.30 3.05 3.30 3.06 FY 19-20 3.38 3.06 3.33 3.32 3.32 3.19 3.20 3.19 3.22 2.71 2.67 2.73 2.55 2.20 2.65 2.30 2.13 2.
Slide 13: Installed Capacity in India as on 30th Sep 2019
Installed Capacity in India as on 30th Sep 2019 is 357 GW vis-à-vis 344 GW as on 30th Sep 2018 203 197 45 45 37 34 31 25 25 23 22 20 Coal Hydro Wind Gas Solar Others Installed Capacity GW (Sep 19) Installed Capacity GW (Sep 18) Source: CEA
Slide 14: Q2 FY'20 Highlights
Q2 FY’20 HIGHLIGHTS INDUSTRY UPDATE COMPANY UPDATE
Slide 15: Business Segments
BUSINESS SEGMENTS STEEL POWER GLOBAL VENTURES Current Capacities – Domestic & Global 8.6 MTPA Steel* 2.4 MTPA Steel IPP – 3400MW 3.11 MTPA* Iron ore Coal & Iron Ore CPP – 1634 MW 9 MTPA* Pellet Plant Mines *Domestic
Slide 16: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (10.25 MTPA) (11.00 MTPA) (7.95 MTPA) WRM 0.60 MTPA Capacity DRI 4.92 MTPAin deail RUBM 0.75 MTPA SMS 11.00 MTPA MLSM 0.60 MTPA BF 5.33 MTPA Plate Mill 2.20 MTPA BRM 3.80 MTPA
Slide 17: Detailed Plant Wise Capacities
DETAILED PLANT WISE CAPACITIES Raigarh Angul Barbil Patratu Oman JPL Mining (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP BF 2.125 MTPA 225,000 DRI 1.8 Nm3/Hr MTPA DRI 1.32 MTPA BF 3.2 MTPA WRM Capacity in deail 0.60 SMS DRI 1.8 MTPA 3.6MTPA MTPA SMS 2.5 SMS 2.4 Iron Plate Mill MTPA Pellet Tamnar
Slide 18: Manifold Growth in the Last 5 Years
MANIFOLD GROWTH IN THE LAST 5 YEARS FY ‘14 FY ‘19 STEEL - INDIA 3 MTPA 8.6 MTPA ~2.86x POWER 1,000 MW 3400 MW 3.4x OMAN 0 MTPA 2.4 MTPA Add PELLET 4.5 MTPA 9 MTPA ~2x All major capex completed – scale of growth is approx. Three Times
Slide 19: Potential for Big Leap
POTENTIAL FOR BIG LEAP UPSIDE FY19 CAPACITY PRODUCTION IN FY19 POTENTIAL STEEL – INDIA 8.6 MTPA 5.25 MTPA 64% CAPACITY STEEL – OMAN 2.4 MTPA 1.71 MTPA 40% CAPACITY INDEPENDENT POWER CAPACITY 3,400 MW 1187 MW 186% PELLET 9.0 MTPA 7.08 MTPA 27% CAPACITY Upside potential remains to be exploited
Slide 20: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q1 FY 20 Q2 FY 20 PARAMETER Q2 FY 20 Q2 FY 19 7,085 6,573 Turnover 6,573 6,849 1,608 1,255 EBITDA 1,255 1,452 23% 19% EBITDA % 19% 21% 567 582 Depreciation + Amortization 582 583 697 657 Interest 657 676 344 16 PBT (Before Exceptional) 16 194 - Exceptio
Slide 21: JSPL - Power Capacities
JSPL - POWER CAPACITIES Independent Power Projects (IPP) CAPACITY CONFIGURA PROJECT FUEL STATUS (MW) TION TAMNAR 1 1,000 Coal 4x250 MW Operational TAMNAR 2 2,400 Coal 4x600 MW Operational Captive power projects (within JSPL) Raigarh CAPACITY STAT PROJECT FUEL CONFIGURATION Tamnar (MW) US Angul DCPP,
Slide 22: Jindal Power Limited
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)
Slide 23: 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 After commercial operation 60 (PHASE 1) Chhattisgarh of
Slide 24: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q1 FY 20 Q2 FY 20 PARAMETER Q2 FY 20 Q2 FY 19 1,114 947 Turnover 947 911 360 299 EBITDA 299 302 32% 32% EBITDA % 32% 33% 289 292 Depreciation + Amortization 292 333 217 214 Interest 214 222 (3) (64) PBT (64) (183) 23 (35) PAT (35) (153) 286 228 Cash Profit 228 150
Slide 25: 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 26: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS SHADEED, OMAN 1.8 MT DRI , 2.4 MT SMS Plant & 1.4MTPA Rebar Mill – an Integrated Steel Plant MOZAMBIQUE, AFRICA Developing a 5 MTPA coal mine in Mozambique’s coal- rich Moatize region SOUTH AFRICA, AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthraci
Slide 27: 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 Oman Australia South Africa Mozambique 2.4 MTPA Steel plant Coking Coal Anthracite Coal Thermal/ Coking Coal
Slide 28: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q1 FY 20 Q2 FY 20 PARAMETER Q2 FY 20 Q2 FY 19 9,946 8,939 Turnover 8,939 9,982 2,173 1,642 EBITDA 1,642 2,207 22% 18% EBITDA % 18% 22% 1,054 1,039 Depreciation + Amortization 1,039 1,031 1,109 1,030 Interest 1,030 1,086 11 (427) PBT (Before Exceptiona
Slide 29: Key Customers & Adding...
Pe KEY CUSTOMERS & ADDING... JINDAL — © ar NPCIL a £ = iaaiain a BEL Reuince SIMMA vadidid onto NTPC po ten) IndianOil & LANEO GL Group ‘J = farcaieite Indiabulls Indiabulls Power Limited eave tm \/) =o) S Punj Lloyd SIMPLEX at Miray projects gD A BANSAL INFRATECH Giismiorn | Seite tH r 0 g 0 iz iD
Slide 30: Odisha
ODISHA INTEGRATED STEEL PLANT , ANGUL PELLET PLANT, BARBIL 29
Slide 31: Chhattisgarh
CHHATTISGARH INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR TAMNAR,3400 MW POWER PLANT 30
Slide 32: Jharkhand
PANTHER JINDAL? JHARKHAND WRM & BRM, PATRATU
Slide 33: Jindal Shadeed, Oman
JINDAL SHADEED, OMAN 32
Slide 34: 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. Gourav Sancheti– Asst. Manager, Investor Relations Tel : +91 0124-6612317 Mobile:+91 9038240683 Email: - gourav.sancheti@jin
Slide 35: Thank You
THANK YOU JINDALY
Jindal Steel & Power — Q2 FY2020 Earnings Presentation on 6ix