Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (May 2021)
42 slides from Jindal Stainless's investor presentation, May 28, 2021
Slide 1: Exchange intimation letter under Regulation 30
28th May, 2021 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. 022
Slide 2: Corporate Presentation – Jindal Stainless Limited
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 Company Overview 2 Stainless steel Sector Dynamics 3 Key Business Highlights 4 Financials 5 Annexure
Slide 5: Overview
Overview 4
Slide 6: Snapshot
Snapshot 5 Jindal Stainless – Pioneers of the stainless steel industry in India #1 ~4 >25% 40+ Stainless steel player Decades of Group Domestic Market Exports to countries in India Excellence Share ~800 1.1Mn Tonne ~Rs. 120bn ~Rs. 14bn Acre Total Land Area Per Annum stainless steel FY21 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
Stainless steel 7 Sector Dynamics
Slide 9: Stainless 'Value-Added' Steel
Stainless ‘Value-Added’ Steel 8 Low Maintenance Weldability Recyclability Aesthetics Stainless Durability steel Formability 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 5.3% 50.7 52.2 45.8 48.1 Aluminium 3.7% 1980 - 2019 CAGR 41.7 41.5 38.5 Copper 2.6% (mt) Carbon Steel 2.5% Zinc 2.1% 2013 2014 2015 2016 2017 2018 2019 Le
Slide 11: Consumption Pattern diversifying across categories
Consumption Pattern diversifying across categories 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
Slide 12: Stainless steel Product Applications
Stainless steel 11 Product Applications 360o Product Applications Jindal Stainless caters to a wide range of products…
Slide 13: Architecture Building Construction (ABC)
12 Architecture Building Construction (ABC) Decorative and color coated stainless steel Decorative Panels Street furniture Home furniture Escalators, elevators Sculptures & designer items Claddings Commercial Complexes Railings Stainless steel roofing sheets Gates Railway station upgradation
Slide 14: Automobile Railway Transport (ART)
13 Automobile Railway Transport (ART) Bus bodies Exhaust systems, auto chassis, trims, suspension parts, fuel tanks, catalytic convertors Railway wagons and coaches Metro coaches
Slide 15: Process & Engineering
14 Process & Engineering Nuclear grade stainless steel for fuel containment and waste handling Super critical boilers in power plants Water treatment and drinking water supply Desalination applications Chemicals, petro-chemical & fertilizer plants
Slide 16: Consumer Durables
15 Consumer Durables Washing Machine Microwave Refrigerator Utensils Components thereof
Slide 17: Stainless Steel Growth Drivers
Stainless Steel Growth Drivers 16 Macro factors driving domestic stainless steel usage Increasing shift towards manufacturing of stainless steel Railway wagons and coaches New trends in Auto sector like stainless steel fuel tanks, BS-VI compliant exhaust systems, Automobile Railway stainless steel b
Slide 18: New Age Applications
New Age Applications 17 Stainless steel body coaches Stainless steel Foot-over-bridges Increased Stainless steel usage in and wagons modernization of Railway Infrastructure Stainless steel emerging as a perfect Stainless steel Overhead Water Tanks Stainless steel body E-rickshaws metal for BS-VI com
Slide 19: Key Business Highlights
caw / 2 Seas A — % ey. Business ighlights
Slide 20: Integrated operations with huge opportunity to drive operating leverage
Integrated operations with huge opportunity to drive operating Leverage 19 ~800 ACRE 250,000TPA 100,000TPA 264 MW 450,000TPA Total Land Area Ferro-Alloys Mill Plate Captive Power Plant Cold Rolled Annealing Annealing & Pickling (scalable upto 500MW Pickling line High quality infrastructure and facil
Slide 21: Structural initiatives – leading to sustainable turnaround
Structural initiatives – leading to sustainable turnaround 20 Diversification and Innovation-led Lowered logistics cost reliable sourcing of operational efficiency Raw Materials Railway sidings within the plant led Expanded resources of Chrome Increased usage of liquid Ferro to multifold benefits or
Slide 22: JSL – Domestic Footprint
JSL – Domestic Footprint 21 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
Slide 23: JSL – Global Footprint
JSL – Global Footprint 22 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 24: Focus on expanding Brand and Market presence
Focus on expanding Brand and Market presence 23 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 25: Key Growth Drivers
Key Growth Drivers 24 Structural growth of stainless steel demand in India • One of the fastest growing value-added metal • Various Government initiatives to further drive stainless steel demand Wide range of product applications and new segment penetration • Increasing premiumization trend and dema
Slide 26: Leadership Play
Leadership Play 25 Leadership position in the fast growing Integrated operations with state-of-art Value-Added stainless steel sector – facilities clear proxy to the sector Huge operating leverage - Fast deleveraging to low incremental capex to significantly strengthen drive future growth balance sh
Slide 27: Financial and Operational overview
Financial and Operational 26 overview
Slide 28: Turnaround in Performance
Turnaround in Performance 27 Stainless steel Sales Volume (MT) Net Revenue (Rs. mn) 916 1,25,850 852 825 1,23,201 1,16,791 Thousands 230 251 255 31,560 34,520 38,096 89 12,615 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) 12.9% 13.7% 12.0% 11.2% 4,279 9.0% 9.5% 2,649 6.2% 1,529 1,517 1,390 978 5,213 11,3
Slide 29: Significantly strengthened Balance Sheet profile
Significantly strengthened Balance Sheet profile 28 Net Debt (Rs. mn) Net Debt/Equity Ratio Net Debt/EBITDA 3.6 41,040 36,104 3.1 28,101 2.0 1.7 1.4 0.9 FY19 FY20 FY21 FY19 FY20 FY21 ROE (%) ROCE (%) 14.7% 15.5% 12.0% 11.6% 5.8% 6.0% FY19 FY20 FY21 FY19 FY20 FY21 Consistent focus on deleveraging eff
Slide 30: Comfortable Debt Position
Comfortable Debt Position 29 Borrowings (Standalone) As on As on As on (Rs. mn) Mar. 2021 Mar.2020 Mar.2019 Long term debt 15,303 23,572 20,500 Net Debt/Equity Inter corporate loan from related party# 10,500 9,000 9,000 1.7 OCRPS* - - 6,950 1.4 Total Long term debt 25,803 32,572 36,450 Short term bo
Slide 31: Key Milestones achieved
Key Milestones achieved 30 Redemption of Optionally Successfully exits Convertible Corporate Debt Redeemable Restructuring Preference (CDR) Shares (OCRPS) including recompense • Obtained all requisite approvals • Fully redeemed the outstanding from authorities and successfully OCRPS of ~Rs. 558 cror
Slide 32: Merger Overview: Complementing strengths
Merger Overview: Complementing strengths 31 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) includi
Slide 33: Merged Entity Pro-forma Financials
Merged Entity Pro-forma Financials 32 SS conglomerate with 1.9 mtpa capacity Improved performance in Last 9 months* : Revenue 1,91,754 1,72,328 Revenue 17% EBITDA : 24,075 1,46,902 Interest : 6,094 FY20 FY21 EBITDA Net Debt : 609 31,247 22,908 15,081 52% Net Debt/ Equity : 0.5 Net Debt/ EBITDA : 1.3
Slide 34: JSL, JSHL Merger: Progressing Well
JSL, JSHL Merger: Progressing Well 33 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 • Received Stock Exchanges/
Slide 35: Proposed Structure Post Merger
Proposed Structure Post Merger 34 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 36: Annexure
Annexure 35
Slide 37: Jindal Stainless Ltd subsidiaries
Jindal Stainless Ltd 36 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 O
Slide 38: Asset Monetization Plan (AMP)
Asset Monetization Plan (AMP) 37 Jindal Stainless Ltd Jindal Jindal Jindal United Jindal Coke Stainless Stainless Ltd 26% Steel Ltd 26% Ltd Hisar Ltd (JSL) (JUSL) (JCL) (JSHL) Listed Unlisted Entities Entities • Integrated SS Facility – • Steel Melting – 11,00,000 MTPA • Hot strip Mill – • Coke Oven
Slide 39: Promoters' pledging: clarification
Promoters’ pledging: clarification 38 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 40: Shareholding Pattern
Shareholding Pattern 39 Floating Stock (%) Retail & Others FII 11.4% Promoters Other 13.2% 68.1% 31.9% DII 7.3% Note – Data as on 31st March 2021
Slide 41: Contact Us
Contact Us 40 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 42: Thank You
Thank You 41