Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Antique Stock Broking Annual Investor Conference, Nuvama India Conference 2023, Axis Capit
44 slides from Jindal Stainless's conference presentation, Feb 7, 2023
Slide 1: Intimation of Investor Conference and Corporate Presentation
...JSL JINDAL STAiNLESS 07 111 February, 2023 BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department, Exchange Plaza, 5 111 Floor, 151 Floor, New Trading Ring, Plot no. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Sandra (E), Dalal Street, Fort, Mumba
Slide 2: Corporate Presentation
Corporate Presentation JINDAL STAINLESS LIMITED
Slide 3: Disclaimer
Disclaimer 2 This presentation and the accompanying slides (the “Presentation”), which has been prepared by Jindal Stainless Limited (the "Company"), has been prepared purely for information purposes only and is not, and is not intended to be, an offer, or solicitation of offer, or invitation or rec
Slide 4: Content
Content 3 1 Overview 2 Stainless steel Sector Dynamics & Diversified Applications 3 Merger Overview 4 Capex Overview 5 Annexure
Slide 5: Overview
Overview 4
Slide 6: Snapshot
Snapshot 5 Jindal Stainless – Pioneers of the stainless steel industry in India #1 ~5 >25% 40+ Stainless steel player Decades of Group Domestic Market Exports to countries in India Excellence Share ~800 1.1Mn Tonne ~Rs. 203bn ~Rs. 28bn Acre Total Land Area Per Annum stainless steel FY22 Revenues (Ne
Slide 7: Company Overview
Company Overview 6 Largest integrated stainless steel Company in India with Product Basket manufacturing facilities located at Jajpur, Odisha Robust logistics infrastructure, including in-house railway sidings, with close proximity to ports provide strong support to overall operations – ‘State-of-th
Slide 8: Stainless Steel Sector Dynamics & Diversified Applications
Stainless Steel Sector Dynamics 7 & Diversified Applications
Slide 9: Value-Added & Sustainable Metal
Value-Added & Sustainable Metal 8 Low Maintenance Weldability Formability Aesthetics Stainless steel Durability Recyclability Low Life Cycle Cost Corrosion Resistance Stainless steel - The “Green wonder Metal”
Slide 10: Favourable Sector Dynamics
Favourable Sector Dynamics… 9 Healthy growth in global stainless steel demand… …with stainless steel as the fastest growing metal Stainless Steel 5.1% 50.7 52.2 50.8 45.8 48.1 Aluminium 3.7% 1980 - 2019 CAGR 41.7 41.5 38.5 Copper 2.6% (mt) Carbon Steel 2.4% Zinc 2.0% 2013 2014 2015 2016 2017 2018 20
Slide 11: Diversifying Consumption Pattern
Diversifying Consumption Pattern 10 1998 2015 2023E 6% 2% 1% 3% 2% 20% 7% 7% 12% 11% 38% 57% 13% 17% 80% 25% Over the past 2 decades, stainless steel consumption in India has diversified to new value-added categories of ABC, ART and Process industries from the most primary usage in Cookware/Durables
Slide 12: Stainless Steel Product Applications
Stainless Steel Product Applications 11 360o Product Applications Jindal Stainless caters to a wide range of products…
Slide 13: New Age Applications
New Age Applications 12 Modernization of Railway Railways coaches and Foot-over-bridges/ Dairy industry Infrastructure wagons/ Metro coaches Rail-over- bridges Auto: BS- VI compliant Overhead Water Tanks/ E-rickshaws Pharma equipment exhaust system/ Fuel Tanks Urban Infrastructures Innovative soluti
Slide 14: Focus on expanding Brand and Market presence
Focus on expanding Brand and Market presence 13 Investing in various Branding & marketing initiatives to enhance overall market potential by: – Creating awareness of hygiene and health benefits of stainless steel – Increase usage of stainless steel in Home and Public Spaces Home Smart Home Campaign
Slide 15: Domestic Footprint
Domestic Footprint 14 Gurugram Delhi Corporate Office Odisha Jajpur Ahmedabad Kolkata Vadodara Jajpur Bhubaneswar Mumbai Pune Hyderabad Strategically located manufacturing Chennai facility in Jajpur, Odisha JSL and Associate Sales Offices – Close proximity to ports and key raw-materials – low lead J
Slide 16: Global Footprint
Global Footprint 15 Russia United Kingdom x Belgium USA Spain Italy South Korea Vietnam Taiwan UAE Singapore Indonesia Brazil JSL and Associate Sales Offices JSL and Associate Service Center Manufacturing Facility
Slide 17: Merger Overview
Merger Overview 16
Slide 18: Proposed Structure Post Merger
Proposed Structure Post Merger 17 Public Promoter 42.9% 57.1% ● Merger of JSHL into JSL JSL JSHL ● Swap ratio 1:1.95 PT Jindal Stainless 99.9% Indonesia Subsidiaries Iberjindal S.L, 65% /Investment ● Merger of JSL Lifestyle (mobility Spain business), JSL Media and JSCMS into JSL JSL Lifestyle (mobil
Slide 19: Complementing Strengths
Complementing Strengths 18 JSL JSHL Jajpur, Odisha Hisar, Haryana Key Plant Location Raw Material Hub, Port Proximity Key Consumption Hub Proximity 1.1 MTPA Integrated facility along with 0.8 MTPA with Specialized Product backward integration (Ferro Chrome and Division (SPD) including Blade Steel, S
Slide 20: Joins Top 10 Global Stainless Steel League
Joins Top 10 Global Stainless Steel League 19 Enhanced Competitive Edge Flat Long Tsingshan TISCO POSCO Chengde Outokumpu Acerinox '000 tones Aperam Jindal Stainless Among Top 10 Jiangsu Delong global players LISCO JISCO Acciai Speciali Terni Baosteel Stainless Steel NSSMC Lianyungang Huale Alloys 0
Slide 21: Merger & Acquisition Update
Merger & Acquisition Update 20 JSL- JSHL MERGER APPOINTED DATE • Board approval of the scheme of arrangement • Stock Exchanges/SEBI approval April 1, 2020 • Shareholders and Creditors approvals MAJOR EVENTS SWAP RATIO • Sectoral Regulators approval 1 : 1.95 • NCLT approval • Implementation of Scheme
Slide 22: Merged Proforma Performance
Merged Proforma Performance 21 Revenue EBITDA 4,740 35,541 3,773 32,620 25,817 2,477 FY22 TTM 9M FY23 FY22 TTM 9M FY23 Interest Cost PAT PBT 327 2,949 311 2,428 236 1,404 FY22 TTM 9M FY23 FY22 TTM 9M FY23 Note: The term “ proforma merged” refers to the standalone post merged figures of entities of J
Slide 23: Consolidating Balance Sheet Strength
Consolidating Balance Sheet Strength 22 Net Debt (INR Cr) Net Debt / Equity Net Debt / EBITDA 0.8 (40)% 2.3 4,718 3,162 2,824 0.3 0.3 0.7 0.7 Mar’20 Mar’22 Dec’22 Mar’20 Mar’22 Dec’22 Mar’20 Mar’22 Dec’22 Note: The term “ proforma merged” refers to the standalone post merged figures of entities of J
Slide 24: JUSL Performance
JUSL Performance 23 EBITDA Interest Cost 236 216 635 590 480 162 FY22 TTM 9M FY23 FY22 TTM 9M FY23 PAT Net Debt PBT 2,402 194 2,030 1,964 148 151 FY21 FY22 9M FY23 FY22 TTM 9M FY23 TTM : Trailing twelve months from Jan’22; All figures in INR. crore unless stated otherwise
Slide 25: Key Drivers
Key Drivers 24 Structural growth of stainless steel demand in India • Fastest growing value-added metal globally • New age applications, awareness, replacement demand to continue support Diversified end use segments with robust Domestic & Global presence • >120 grades, high volume and niche offering
Slide 26: Capex Overview
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Slide 27: Integrated Operations: Unfolding Economies of Scale
Integrated Operations: Unfolding Economies of Scale 26 ~800 ACRE 1.1MTPA 250,000TPA 264 MW 450,000TPA Total Land Area SMS Capacity Ferro-Alloys Captive Power Plant Cold Rolled Annealing Pickling line High quality infrastructure and facilities in place – 1.1 million tonne capacity with scalable infra
Slide 28: Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership
Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership 27 JSL - Doubling Stainless Steel JSHL – Multiplying Speciality Capacity Products Augmenting Stainless Steel Melt capacity Strengthening product mix with expansion from 1.1MTPA to 2.1MTPA in value added product segment I
Slide 29: JSL: Doubling Capacity at <1/3rd Cost
JSL: Doubling Capacity at <1/3rd Cost 28 SMS - Upstream Combo Line - Downstream 2.1 1.25 0.75 1.6x 2x 0.80 1.7x 0.45 1.1 Existing Proposed Existing Proposed Existing Proposed Steel Melting Capacity HRAP Capacity CRAP Capacity Expansion(MTPA) Expansion (MTPA) Expansion (MTPA) Est. Capex ~INR 530 Cr E
Slide 30: JSL: Scaling-up Integrated Play
JSL: Scaling-up Integrated Play 29 Ferro Chrome – Backward Quality Lab & Other Integration 350 Balancing 250 1.4x Est. Capex ~INR 55 Cr Enhancing the quality assurance for new generation grades in high-end segments Existing Proposed Ferro Chrome Capacity Improve serviceability for better custome
Slide 31: JSHL: Multiplying Speciality Product Mix
JSHL: Multiplying Speciality Product Mix 50 Years of Excellence 30 60 24 1.7x 3x 14 Est. Capex ~INR 250 Cr Est. Capex ~INR 200 Cr 22 Q2 FY22/ Est. Completion Q2 FY23/ Q4 FY23 Est. Completion Q2 FY24 Existing Planned Existing Planned Precision Strip Capacity Blade Steel Capacity Expansion (KTPA) Expa
Slide 32: Integrated expansion for Atmanirbhar Bharat
Integrated expansion for Atmanirbhar Bharat 31 Existing Incremental Total JSL Est. Capex Est. JSL Projects Capacity Capacity MTPA INR Cr Completion MTPA MTPA SMS 1.10 1.00 2.10 530 Q4 FY23 Combo Line 1,250 Q4 FY23 HRAP 0.80 0.45 1.25 CRAP 0.45 0.30 0.75 Ferro Chrome 0.25 0.10 0.35 315 Q3 FY24 Qualit
Slide 33: Leadership Play
Leadership Play 32 Leadership position in the fast growing Integrated and Innovation led Value-Added stainless steel sector operation along with cost efficiency - State-of-art facilities Huge operating leverage - Strong and deleveraged low incremental capex to balance sheet/ capital drive future gro
Slide 34: Annexure
Annexure 33
Slide 35: JSL: Steady Performance in Tough Times
JSL: Steady Performance in Tough Times 34 Stainless steel Sales Volume (kT) Net Revenue (Rs. mn) 1,011 2,03,119 916 836 825 1,69,995 1,23,201 1,16,791 EBITDA (Rs. mn) PAT (Rs. mn) 16,745 27,908 8,272 13,959 15,568 11,748 4,279 1,529
Slide 36: JSL: Debt position & Key ratios
JSL: Debt position & Key ratios 35 Borrowings (Standalone) As on Dec As on Sep As on Mar (INR crore) 2022 2022 2022 Net Debt/Equity 0.9 Lenders’ Debt Long term debt 1,846 1,883 1,455 0.5 Short term borrowing 185 343 290 0.3 Total Lenders’ Debt 2,031 2,227 1,744 Inter corporate loan from 1,050 1,050
Slide 37: JSHL: Consistent performance
JSHL: Consistent performance 35 Stainless Steel Sales Volume (KT) Net Revenue (Rs. mn) 1,35,493 702 1,02,846 600 577 83,397 83,997 490 EBITDA (Rs. mn) 12,752 19,400 5,989 8,618 10,026 9,496 4,778 3,204
Slide 38: JSHL: Debt position & Key ratios
JSHL: Debt position & Key ratios 37 Borrowings (Standalone) As on Dec As on Sep As on Mar (INR crore) 2022 2022 2022 Net Debt/Equity 0.6 Long term debt 1,172 1,190 1,205 0.4 Short term borrowing (less 0.3 142 256 421 than 12 months) Total Debt 1,314 1,446 1,626 Cash & Bank balances 222 493 21 FY21 F
Slide 39: JSL: Subsidiaries
JSL: Subsidiaries 38 65.00% JSL 99.99% Iberjindal S.L. P. T. Jindal Stainless Indonesia • Stainless steel Service Center • Manufacturing Unit – 150,000 MTPA CR • Offers customized to the doorsteps of capacity customers in Spain • Key producer of stainless steel in South East Asian market Global Outr
Slide 40: JSHL: Subsidiaries
JSHL: Subsidiaries 39 JSHL 100% 73% Holdings Jindal Stainless Steelway Ltd JSL Lifestyle Ltd • Service centre • Manufacturer of lifestyle products and • Customized stainless steel products for accessories under the brand names various applications Arttdinox, Arc and Krome Reaching end users
Slide 41: Promoters' pledging: clarification
Promoters’ pledging: clarification 40 There is no loan raised against the promoters’ shares (LAS), and therefore there is no linkage between the pledged shares and their market value Accordingly, there is no requirement of maintaining any margins, since the aforesaid shares are offered only as an ad
Slide 42: Shareholding Pattern
Shareholding Pattern 41 JSL JSHL Floating Stock (%) Floating Stock (%) Retail & Retail & FII Others Others FII 13.2% 9.5% 13.9% Other Other 22.5% Promoters 29.9% Promoters 41.1% 70.1% 58.9% DII DII 7.2% 4.7% Note – Data as on 31st December, 2022
Slide 43: Contact Us
Contact Us 42 About Us: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless steel manufacturer. The Company operates an integrated stainless steel plant at Jajpur, Odisha. The complex has a total stainless steel capaci
Slide 44: Thank You
Thank You 43