Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Investor Presentation (December 2020)
59 slides from Jindal Steel's investor presentation, Dec 2, 2020
Slide 1: Exchange filing cover letter
December 2, 2020 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 co
Slide 2: Jindal Steel and Power Ltd Investor Presentation 2Q FY21
Jindal Steel and Power Ltd Investor Presentation 2Q FY21 (October’ 20) 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 va
Slide 6: Key Milestones During Our Journey
KEY MILESTONES DURING OUR JOURNEY • Commissioning of 2 coke • Resumption of • Commissioned India’s largest and most modern 4554 cu.m. oven batteries CGP – DRI Blast Furnace at Angul. operations 2020 • Completed 3 MTPA Basic Oxygen Furnace at Angul. All facilities wrt 5 MTPA Steel Capacity at JSPL An
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 Manju Dudeja CFO-JPL • Experience: >20 years 7
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 Sept'17
SHAREHOLDING OF JSPL FROM SEPT’17 30-Sep-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 Promoters 61.89% 61.96% 58.66% 58.66% 58.66% 58.66% 58.69% 60.52% 60.40% 60.40% 60.48% 60.48% 60.47% Institutional Investors 21.22% 23.6
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 1.00 SMS 2.5 MTPA Pellet Tamnar Ore 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
@ ram PANTHER Rail Track Rail: IRS 52, VIC 60(EIKE2), UIC 54E Crane Rails: CR 80, CR 100 Angles Sizes: 50mm to 250mm Parallel Flange Beams & Columns Sections: U8, UC, NPB, WPB, IPE and HE series. Size range: 180m to 900mm Wire Rods Grades: MS, MC & HC, EO, Boron and other Alloy Stee! Size range: 5.2
Slide 18: JSPL Product Range
NOVATIVE PRODUCTS Plates Fabricated Structures Cut & Bend Width: 1500mm to 4900mm Sections: H-type Beam, I-type Beams, Box Sections and Customized and Ready to Use Star Coulums TMT Rebars Thickness: Smm to 150mm Sections: Depth: 350mm - 3000mm, Flange Width: 250mm - 1000mm, Length: 3 to 18 meters Co
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: Panther Jindal
oS PANTHER JINDAL 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 After commercial operation 60 (PHASE 1) Chhattisgarh of
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
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, 60.38% stake in Wollongong Coal sold domestically and internationally. Ltd which comprises of two
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 Unique 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 & RMANCE
Slide 35: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (Rs. In Crores) Q1 FY 21 Q2 FY 21 PARAMETER Q2 FY 21 Q2 FY 20 8,047 9,804 Gross Revenue* 9,804 8,626 7,585 8,990 Net Revenue 8,990 7,688 2,202 2,702 EBITDA 2,702 1,518 29% 30% EBITDA % 30% 20% 864 873 Depreciation + Amortization 873 929 924 798 Interest 798 938 417 1
Slide 36: JSPL Standalone Key Financials
JSPL STANDALONE KEY FINANCIALS (Rs. In Crores) Q1 FY 21 Q2 FY 21 PARAMETER Q2 FY 21 Q2 FY 20 6,741 8,667 Gross Revenue* 8,667 7,509 6,281 7,859 Net Revenue 7,859 6,573 1,828 2,435 EBITDA 2,435 1,255 29% 31% EBITDA % 31% 19% 562 568 Depreciation + Amortization 568 582 604 554 Interest 554 657 663 1,3
Slide 37: JPL Key Financials
JPL KEY FINANCIALS (Rs. In Crores) Q1 FY 21 Q2 FY 21 PARAMETER Q2 FY 21 Q2 FY 20 856 990 Turnover 990 947 368 302 EBITDA * 302 299 43% 31% EBITDA % 31% 32% 257 260 Depreciation + Amortization 260 292 211 209 Interest 209 214 20 (58) PBT (58) (64) 39 (1) PAT (1) (35) 285 317 Cash Profit 317 228 2,179
Slide 38: Revenue & EBITDA in FY20
REVENUE & EBITDA IN FY20* (Figures in Rs. Crores) REVENUE (Rs. In Cr) 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 EBIDTA (Rs. In Cr) (Figure
Slide 39: Operational Performance
OPERATIONAL PERFORMANCE Consolidated Steel Consolidated Steel Sales (incl Production(incl Oman)* Oman)* 0.48 0.46 0.44 0.39 0.41 0.41 0.51 0.360.57 0.47 0.46 0.430.38 0.46 0.48 0.42 0.45 0.50 0.50 0.57 0.36 1.57 1.51 0.54 0.42 1.58 0.42 1.52 0.43 1.22 0.39 0.43 1.48 0.39 1.32 1.19 1.27 0.36 0.35 0.2
Slide 40: JSPL Consolidated Debt Bridge - 1HFY21
JSPL CONSOLIDATED DEBT BRIDGE- 1HFY21 (Rs. In Crores) 40000 2213 710 35000 141 5363 2 30000 25000 20000 35919 15000 28910 10000 5000 0 Net Debt as on 31st Debt reduction Addition in Debt Due to Fx Impact(Reduction Net Debt Reduction Due Movement in Cash & Net Debt as on 30th Mar'20 Moratorium Intere
Slide 41: Debt Profile Entity-wise as on Sept '20
DEBT PROFILE ENTITY-WISE as on Sept ‘20 Debt Rs.29,560* Crs Jindal Steel & Power Ltd (Consolidated) Debt Rs.7,338 Crs Debt Rs.15,538 Crs Debt Rs. 4,516Crs Jindal Power Ltd. Jindal Steel & Power Ltd Jindal Steel & Power (Mauritius) (Standalone) Ltd. Independent power plants in India The listed operat
Slide 42: Facilities at a Glance
JINDAL? 41
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
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 45
Slide 47: Jharkhand
JHARKHAND WRM & BRM, 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 1HFY21
SUSTAINABLE CSR 1HFY21 SUSTAINABLE LIVELIHOOD DRINKING WATER HEALTH & NUTRITION EDUCATION SKILL BUILDING & WOMEN & SANITATION EMPOWERMENT 27000 + 2 Lakh + 12000+ 500+ 2150 + Adolescent girls and People provided Students youths provided with women benefitted from with safe and clean empowered vocatio
Slide 52: Sustainable CSR 1HFY21
SUSTAINABLE CSR 1HFY21 ENVIRONMENT & COMMUNITY SPORTS SOCIAL INCLUSION AGRICULTURE INFRASTRUCTURE 5000 + 250+ 20000+ 1800+ Sports talents trained Community Plantation and People provided/ benefitted and developed for Parentless children supported scientific agricultural with infrastructural National
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 • Listed as Most Honored company in Basic Material Sector by All Asia Executive Team Ranking 2020,Institutional Investor Research • Prestigious Award for Achievement in Supply of Railway Tracks, Rail Analysis Award 2019 • JSPL was awarded “FICCI CSR Award “ for Women Emp
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
Jindal Steel & Power — Investor Presentation (December 2020) on 6ix