Slide 1: Cover letter to stock exchanges on investor presentation
HEG/SECTT/2023 20th February, 2023 1 BSE Limited 2 National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI - 400 001. Bandra (E),MUMBAI - 400 051. Scrip Code : 509631 Scrip Code : HEG Sub: Investors pr
Slide 2: HEG Limited Investor Presentation Q3 FY23
HEG LIMITED Investor Presentation-Q3 FY23 20th Feb, 2023
Slide 3: Graphite Electrode (GE)
Graphite Electrode (GE) • A consumable for Electric Arc Furnaces (EAF) for Steel production • Used as electrical conductors in Electric Arc Furnaces to generate heat to melt steel scrap • High-tech / High Entry Barrier – HEG the last new entrant in the world -1976 • EAF Steel emits one fourth carbon
Slide 4: HEG Limited – Unique Strengths
HEG Limited – Unique Strengths • Has been World’s Largest Single Site Graphite Electrode Plant under one roof with a capacity of 80,000 tons pa • On the verge of completing expansion to 100,000 tons in next 2 - 3 months (part of the new capacity already commissioned) • Except ours, no additional cap
Slide 5: HEG Limited - Plant View
HEG Limited - Plant View HEG Ltd © LNJ Bhilwara Group 4
Slide 6: Crude Steel Production Annual Growth Trend (%)
Crude Steel Production Annual Growth Trend (%) China Rest of world World 13.1 7.8 7.9 6.6 6.3 5.2 5.2 3.9 4.9 3.0 3.8 0.5 0.6 0 -2.2 -2.2 -2.1 -0.9 -3.1 -2.9 -4.4 -3.8 -7.0 Source :WSA -7.7 2015 2016 2017 2018 2019 2020 2021 2022 HEG Ltd © LNJ Bhilwara Group 5
Slide 7: Top Crude Steel-Producing Countries 2022 vs 2021
TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- 2022 vs 2021 (12 months) Sr. No Country CY 21 (mmt) CY 22 (mmt) Change 2021/2022 1 China 1033.7 1010.8 -22.9 -2.2% 2 Iran 28.3 30.6 2.3 8.0% Subtotal 1062.0 1041.4 -20.6 -1.9% 3 India 118.2 124.7 6.5 5.5% 4 Japan 96.3 89.2 -7.1 -7.4% 5 United States 85.8 80.7
Slide 8: Top Crude Steel-Producing Countries Q4'2022 vs Q3'2022
TOP 10 CRUDE STEEL-PRODUCING COUNTRIES- Q4’2022 vs Q3’2022 (3 months) Sr. No Country Jul-Sep22 (mmt) Oct-Dec22 (mmt) Change Q3/Q4 1 China 252.3 232.2 -20.1 -8.0% 2 Iran 6.8 8.4 1.6 23.0% Subtotal 259.1 240.6 -18.5 -7.1% 3 India 30.0 31.4 1.4 4.7% 4 Japan 21.8 21.4 -0.4 -1.8% 5 United States 20.4 19.
Slide 9: World Crude Steel Production Quarter wise (CY-22)
World Crude Steel Production Quarters wise ( CY 15 – 22) China World Excl. China 292 -17% 284 280 272 275 270 249 246 252 244 Production (mmt) 232 234 232 227 218 216 201 224 224 220 218 219 217 212 209 211 214 213 205 206 198 194 190 -9% 167 CY15 CY16 CY17 CY18 JanCY19 19 to Jan-Mar Dec 19 Apr-Jun
Slide 10: ROW EAF Steel Production Quarter wise (CY-22)
ROW EAF Steel Production Quarters wise ( CY 15 – 22) World Excl. China Highest Ever EAF STEEL Production (mmt) 110 -9% 107 106 108 105 105 104 102 100 99 97 98 97 96 95 90 79 *above mentioned EAF Steel data fig. are our estimates after considering 49% of crude steel production through EAF route. CY1
Slide 11: Graphite Electrode (GE) – Demand Trend
Graphite Electrode (GE)– Demand Trend • As per World Steel Association (WSA), Global Electric Arc Furnace (EAF) Steel production grew at a 4% CAGR between 2015 to 2022 (w/o China) • EAF Steel production accounted for 49% in 2022 as compared to 44% in 2015 (w/o China) • EAF Steel production emits 1/4
Slide 12: HEG Ltd © LNJ Bhilwara Group
HEG Ltd © LNJ Bhilwara Group 11
Slide 13: Financial Results for the Quarter ended 31st Dec 2022 Standalone
Financial Results for the Quarter ended 31st Dec 2022 Standalone (in Rs. cr) Quarter Ended Nine Months Ended Year Ended Sl. No. Particulars 31-12-2022 30-09-2022 31-12-2021 31-12-2022 31-12-2021 31-03-2022 Unaudited Unaudited Unaudited Unaudited Unaudited Audited I Revenue from Operations 530.27 598
Slide 14: Financial Results for the Quarter ended 31st Dec 2022 Standalone
Financial Results for the Quarter ended 31st Dec 2022 Standalone (in Rs. cr) Quarter Ended Nine Months Ended Year Ended Sl. No. Particulars 31-12-2022 30-09-2022 31-12-2021 31-12-2022 31-12-2021 31-03-2022 Unaudited Unaudited Unaudited Unaudited Unaudited Audited VII Profit/(Loss) before Tax (V-VI)
Slide 15: Financial Results for the Quarter ended 31st Dec 2022 Consolidated
Financial Results for the Quarter ended 31st Dec 2022 Consolidated (in Rs. cr) Quarter Ended Nine Months Ended Year Ended Sl. No. Particulars 31-12-2022 30-09-2022 31-12-2021 31-12-2022 31-12-2021 31-03-2022 Unaudited Unaudited Unaudited Unaudited Unaudited Audited I Revenue from Operations 530.27 5
Slide 16: Financial Results for the Quarter ended 31st Dec 2022 Consolidated
Financial Results for the Quarter ended 31st Dec 2022 Consolidated (in Rs. cr) Quarter Ended Nine Months Ended Year Ended Sl. No. Particulars 31-12-2022 30-09-2022 31-12-2021 31-12-2022 31-12-2021 31-03-2022 Unaudited Unaudited Unaudited Unaudited Unaudited Audited IX Profit/(Loss) before Tax (VII+V
Slide 17: Financial Snapshot (Standalone)
Financial Snapshot (Standalone) in Rs. cr (except EPS) FY 22-23 FY PARTICULARS Q3 Q2 Q1 21-22 20-21 19-20 TOTAL INCOME 567 618 743 2281 1369 2293 EBITDA 170 198 205 607 54 138 EBIT 145 175 184 527 (19) 66 PAT 103 130 134 391 (25) 53 EPS 26.64 33.66 34.61 101.20 (6.56) 13.83 EBITDA Margin (%) 30% 32%
Slide 18: Quarterly Performance (Standalone)
Quarterly Performance (Standalone) HEG Ltd © LNJ Bhilwara Group 17
Slide 19: Investments and Borrowings (Standalone)
Investments and Borrowings (Standalone) * Investments including Cash & Cash equivalents and excluding investment in Associates HEG Ltd © LNJ Bhilwara Group 18
Slide 20: Thank You
Thank You Mr.Manish Gulati : Executive Director Mr.Om Prakash Ajmera : Group CFO Mr.Gulshan Kr.Sakhuja : CFO HEG Limited Ph: +91 9910103865 Fax: +91 120 254 1575 Email: Manish.gulati@lnjbhilwara.com Gulshan.sakhuja@lnjbhilwara.com HEG Ltd © LNJ Bhilwara Group 19