Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (July 2022)
43 slides from Jindal Stainless's investor presentation, Jul 5, 2022
Slide 1: Exchange intimation cover letter
05th July, 2022 BSE Limited National Stock Exchange of India Ltd. 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 Ph. 02
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: JSL, JSHL
Merger: JSL, JSHL 20 APPOINTED DATE • April 1, 2020 • Board approval of the scheme of arrangement MAJOR EVENTS • Stock Exchanges/SEBI approval EXPECTED COMPLETION • Shareholders and Creditors approvals IN H2 FY22 • NCLT approval • Implementation of Scheme Shareholders and creditors of JSL and JSHL a
Slide 22: Resilient Operational Performance
Resilient Operational Performance 21 Revenue EBITDA 32,620 4,740 19,175 2,408 FY21 FY22 FY21 FY22 Interest Cost PBT 612 3,886 327 1,337 FY21 FY22 FY21 FY22 Note: Standalone proforma financials (merged entity); All figures in INR. crore unless stated otherwise
Slide 23: Consolidating Balance Sheet Strength
Consolidating Balance Sheet Strength 22 Net Debt (INR Cr) Net Debt / Equity Net Debt / EBITDA 0.8 (33)% 2.3 0.5 4,718 1.3 0.3 3,125 3,162 0.7 Mar’20 Mar’21 Mar’22 Mar’20 Mar’21 Mar’22 Mar’20 Mar’21 Mar’22 Balance sheet strengthening with financial prudence Consistent improvement in Leverage rati
Slide 24: Key Drivers
Key Drivers 23 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 25: Capex Overview
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Slide 26: Integrated Operations: Unfolding Economies of Scale
Integrated Operations: Unfolding Economies of Scale 25 ~800 ACRE 1.1MTPA 250,000TPA 100,000TPA 264 MW 450,000TPA Total Land Area SMS Capacity Ferro-Alloys Mill Plate Captive Power Plant Cold Rolled Annealing Annealing & Pickling Pickling line High quality infrastructure and facilities in place – 1.1
Slide 27: Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership
Leveraging World class Jajpur Infra & Hisar Speciality Product Leadership 26 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 28: JSL: Doubling Capacity at <1/3rd Cost
JSL: Doubling Capacity at <1/3rd Cost 27 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 29: JSL: Scaling-up Integrated Play
JSL: Scaling-up Integrated Play 28 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 30: JSHL: Multiplying Speciality Product Mix
JSHL: Multiplying Speciality Product Mix 50 Years of Excellence 29 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 31: Integrated expansion for Atmanirbhar Bharat
Integrated expansion for Atmanirbhar Bharat 30 Increment Existing Est. al Total JSL Est. Capex JSL Projects Capacity Capacity MTPA INR Cr Completio MTPA n MTPA SMS 1.10 1.00 2.10 530 Q3 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 Qual
Slide 32: Leadership Play
Leadership Play 31 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 33: Annexure
Annexure 32
Slide 34: JSL: Steady Performance in Tough Times
JSL: Steady Performance in Tough Times 33 Stainless steel Sales Volume (kT) Net Revenue (Rs. mn) 1,011 2,03,119 916 825 1,23,201 Thousands 1,16,791 269 62,872 238 257 248 38,413 48,150 53,685 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) 16,745 15.1% 14.8% 13.7% 13.8% 12.0% 12.1% 9.5% 27,908 6,686 4,279
Slide 35: JSL: Debt position & Key ratios
JSL: Debt position & Key ratios 34 Borrowings (Standalone) As on As on As on (INR crore) Mar.2022 Mar.2021 Mar.2020 1.4 Net Debt/Equity Lenders’ Debt Long term debt 1,455 1530 2,357 0.9 Short term borrowing 290 319 398 0.5 Total Lenders’ Debt 1,744 1849 2,755 Inter corporate loan from 1,050 1,050 90
Slide 36: JSHL: Consistent performance
JSHL: Consistent performance 35 Stainless Steel Sales Volume (MT) Net Revenue (Rs. mn) 1,35,493 Thousands 702 600 577 83,997 83,397 34,151 38,203 38,016 151 188 184 179 25,122 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) 12,752 11.9% 14.3% 15.2% 14.7% 14.1% 10.3% 13.6% 4,778 19,400 5,365 3,204 3,375 3,4
Slide 37: JSHL: Debt position & Key ratios
JSHL: Debt position & Key ratios 36 Borrowings (Standalone) As on As on As on (INR crore) Mar.2022 Mar.2021 Mar.2020 Net Debt/Equity 1.1 Long term debt 1,205 1,250 1,929 0.6 Short term borrowing (less 0.4 421 127 90 than 12 months) Total Debt 1,626 1,376 2,019 Cash & Bank balances 21 8 19 FY20 FY21
Slide 38: JSL: Subsidiaries
JSL: Subsidiaries 37 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 39: JSHL: Subsidiaries
JSHL: Subsidiaries 38 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 40: Promoters' pledging: clarification
Promoters’ pledging: clarification 39 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 41: Shareholding Pattern
Shareholding Pattern 40 JSL JSHL Floating Stock (%) Floating Stock (%) Retail & Retail & Others FII Others FII 8.7% 20.5% 16.3% Other 15.1% Promoters Other Promoters 30.1% 58.9% 41.1% 69.9% DII DII 6.3% 4.3% Note – Data as on 31st March, 2022
Slide 42: Contact Us
Contact Us 41 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 43: Thank You
Thank You 42