Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (August 2020)
32 slides from Jsw Steel's investor presentation, August 2020
Slide 1: JSW Steel Limited Corporate Presentation
JSW Steel Limited JSW Steel Limited Corporate Presentation Investor presentation August, 2020 August, 2020
Slide 2: JSW Group and company overview
JSW Group and company overview Key highlights Appendix
Slide 3: JSW Group – overview
JSW Group – overview JSW Steel* JSW Energy* – India’s leading integrated – Engaged across the value chain of steel producer (Installed crude steel power business production capacity: ~18 MTPA) – Operational capacity: 4,577 MW – Market capitalisation of US$6.96 bn(a) – Market capitalisation of US$0.8
Slide 4: JSW Steel – among India's leading steel manufacturers
JSW Steel – among India’s leading steel manufacturers – Integrated steel manufacturing facilities – from raw material – Installed crude steel capacity of ~18 processing plants to value-added MTPA, at strategic locations in product capacities South and West India – Captive Iron Ore Mines with resourc
Slide 5: Transformational journey to market leadership
Transformational journey to market leadership Capacity (MTPA) Total revenue (US$m)(a) EBITDA (US$m) 18.0 18.0 18.0 18.0 11,249 2,509 9,715 9,780 1,959 1,572 7.8 2,581 551 1,577 1.6 178 230 37 FY02 FY10 FY18 FY19 FY20 Q1 FY21 FY02 FY10 FY18 FY19 FY20 Q1 FY21 FY02 FY10 FY18 FY19 FY20 Q1 FY21 Market ca
Slide 6: Key highlights
Key highlights JSW Group and Appendix company overview
Slide 7: Key highlights
Key highlights 1 One of the leading domestic steel players and well placed to benefit through the cycle 2 Strong business profile diversified by region, markets and products 3 Strong focus on operational efficiency with best-in-class conversion costs 4 Robust financial profile and stable cash flows
Slide 8: One of the leading domestic steel players and well placed to benefit through the cycle
One of the leading domestic steel players and well placed to benefit through 1 the cycle JSW Steel is a leading player in India Global and India economy FY20 Q1 FY21 • The IMF expects global GDP to contract by -4.9% in 2020, with further Standalone saleable steel downside risks, amidst extreme uncer
Slide 9: Strong business profile diversified by region, markets and products
2 Strong business profile diversified by region, markets and products Geographically diversified with manufacturing facilities in South and Flexibility to judiciously shift between domestic markets and exports based West India along with strategic overseas presence on market conditions (b) India Fin
Slide 10: Strong business profile diversified by region, markets and products (continued)
2 Strong business profile diversified by region, markets and products (continued) HR GC/GL/ Color Slabs HRC CRC Plates GI Coated Wide offering of flat and long products (82% flats & 18% longs in terms of Production) (a) Billets RCS/Blooms Bars/Rods Wire Tin Rods Plate Diversified portfolio to addr
Slide 11: Strong focus on operational efficiency with best-in-class conversion costs
3 Strong focus on operational efficiency with best-in-class conversion costs Parameter(a) Ongoing initiatives Project Description Expanding 10 / 10 9 8 9 7 6 6 Capacity Vijayanagar Works • To transport Iron ore from the mines to the Vijayanagar plant with Location in high a capacity of 20 MTPA (Phas
Slide 12: Robust financial profile and stable cash flows
4 Robust financial profile and stable cash flows Strong track record of volume growth Track record of operating revenues 31.7% 20.9% 15.8% -13.5% 11,222 15.55 15.60 14.90 14.70 9,693 9,708 12.30 8,015 6,087 2.79 1,560 (a) FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Consolidated
Slide 13: Prudent leverage management
5 Prudent leverage management Publicly stated financial policies Focused leverage Diversify Improve debt management funding sources maturity profile Robust Balance Sheet and Strong Liquidity in the current environment Diverse sources of funding(d) (e) 5,58 5,737 5,216 6,916 8,669 8,378 Bonds a
Slide 14: Proven track record of growth through organic and inorganic expansions
6 Proven track record of growth through organic and inorganic expansions Combination of organic and inorganic growth 2002 2005 2007 2010 2012 2014 2016 2018 • Capacity at 1.6 • 2.5 MTPA • 3.8 MTPA • 3.5 MTPA – • HSM-2 capacity • New CRM2 – • 18 MTPA • Acero Junction, MTPA • Color coating line • 1.0
Slide 15: Proven track record of growth (continued): Dolvi turnaround case study
6 Proven track record of growth through organic and inorganic expansions (continued) 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 December 2010 Completed initiat
Slide 16: Proven track record of growth (continued): detailed capex plan
6 Proven track record of growth through organic and inorganic expansions (continued) Detailed capex plan… 6,423 Mining, Sust & Others. FY21 Capex 963 1,192 2,170 Cost Savings 1,860 (a) 106 USD mn 1,086 Downstream 834 Upstream 3,168 2,767 Announced Capex Capex Spent (FY18-20) FY 21- FY 21- Capex to b
Slide 17: Experienced management with strong parentage
7 Experienced management with strong parentage Chairperson — Emeritus Promoter Director Savitri Devi Jindal Sajjan Jindal Chairman and JSW-JFE partnership Managing Director Partnership overview • 14.99% minority stake bought by JFE in 2010 • Access to cutting edge technologies Executive Directors •
Slide 18: Conclusion
Conclusion One of the leading steel manufacturers in India Market leadership One of the largest steel exporters in India 38% ( Q1 FY21) share of VASP and special products Geographically diversified with manufacturing facilities in South and West India Focus on flat steel products (approximately 82%
Slide 19: Appendix
Appendix JSW Group and Key highlights company overview
Slide 20: Reducing Chinese steel exports supplemented with gradual domestic recovery
Reducing Chinese steel exports supplemented with gradual domestic recovery bodes well for the domestic steel sector Significant room for improvement in per-capita Global Crude Steel Production (MTPA) trend China steel exports (MTPA) consumption in India 111.6 108.1 463 450 1,039 442 434 92.9 (Kg of
Slide 21: Stable steel prices and key raw material price trends
Stable steel prices and key raw material price trends Steel prices trend Raw material price trends (US$/tonne) (a) (b) 120 160 350 140 300 100 120 250 USD/t rebased to 100 100 200 80 80 150 60 100 60 40 20 50 40 0 0 Dec-13 Nov-14 Oct-15 Oct-16 Sep-17 Aug-18 Aug-19 Jul-20 Dec-13 Nov-14 Oct-15 Sep-16
Slide 22: Consolidated financials
Consolidated financials Particulars (US$m) FY16 FY17 FY18 (a) FY19 (b) FY20 (b) Q1 FY21 Operating revenue 6,087 8,015 9,693 11,222 9,708 1,560 (c) Operating EBITDA 847 1612 1959 2509 1572 178 % margin 13.9% 20.1% 20.2% 22.4% 16.2% 11.4% Profit before tax (327) 679 1,013 1,479 399 (85) Profit after t
Slide 23: Standalone financials
Standalone financials Particulars (US$m) FY16 FY17 FY18 (a) FY19 (a) (b) FY20 Q1 FY21 Crude Steel production 12.56 15.8 16.27 16.69 16.06 2.96 Total Saleable steel 12.13 14.77 15.62 15.76 15.08 2.8 Operating revenue 5,410 7,535 8,966 10,219 8,508 1,363 Operating EBITDA 843 1,528 1,819 2,451 1,657 18
Slide 24: Volume guidance for FY21
Volume guidance for FY21 16.06 16.00 15.08 15.00 FY20 FY21E FY20 FY21E Crude Steel Production Saleable Steel Sales All figures are in million tonnes 23
Slide 25: Key Projects- Upstream Projects
Key Projects- Upstream Projects Total project cost – `15,000 crore (USD $1,986M) Total capacity will be increased from 5 MTPA to 10 MTPA. The major facilities to be set-up under the Dolvi: increasing steel making capacity to expansion project are: 10 MTPA 4.5 MTPA Blast furnace with 5 MTPA Ste
Slide 26: Key Projects- Downstream Projects
Key Projects- Downstream Projects Total project cost – `2,000 crore (USD $265M) Vijayanagar: CRM-1 complex capacity CRM1 complex capacity will be increased from 0.85 MTPA to 1.80 MTPA along with two Continuous expansion Galvanizing Line of 0.45 MTPA each, a new 1.2 MTPA Continuous Pickling Line
Slide 27: Key Projects- Manufacturing Integration and Cost Savings projects
Key Projects- Manufacturing Integration and Cost Savings projects Total project cost – ` 5,200 crore (USD $688M) Vijayanagar: Manufacturing Integration Pellet plant 8 MTPA, Commissioning by Q2 FY21 Coke oven battery 1.5 MTPA, Commissioning in H2 FY 22 Total project cost – ` 975 crore (USD $1
Slide 28: JSW Steel Branded Portfolio
JSW Steel Branded Portfolio 27
Slide 29: Sustainability - Integral to Our Operating Philosophy
Sustainability - Integral to Our Operating Philosophy Infinite circularity of steel as a product – Scrap steel • WSA Steel Sustainability Champions 2019 utilization for steel making • Vijayanagar and Salem works’ recognized Circular Reduce, Reuse, Remanufacture and Recycle throughout its with Su
Slide 30: JSW Group – COVID-19 response
JSW Group – COVID-19 response Committed ~$13.3m to the PM-CARES Fund • Group covered 19 locations has assisted • Conversion of a number of facilities across JSW 150 villages with food security and Group locations to Isolation Wards, including sanitization drives remote areas like Sholtu- Himachal Pr
Slide 31: 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 32: Thank You
Thank You JSW Steel Limited Investor presentation August, 2020