Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Debt Investor Presentation (September 2019)
26 slides from Jsw Steel's debt investor presentation, September 2019
Slide 1: US$[•] million Senior Notes Offering
Investor Presentation US$[•] million Senior Notes Offering September, 2019 Confidential
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This presentation and accompanying slides (the “Presentation”) is
Slide 3: Offering summary
Offering summary Summary indicative term sheet Issuer • JSW Steel Limited Structure • Senior Unsecured Notes Corporate ratings(a) • Moody’s: Ba2 (Positive) / Fitch: BB (Stable) Expected issue ratings(a) • Ba2 by Moody’s / BB by Fitch Distribution • Reg S only Issue size • US$[ ]m Tenor • 5.5 years •
Slide 4: JSW Group and company overview
JSW Group and company overview Key highlights Appendix
Slide 5: JSW Group – overview
JSW Group – overview JSW Steel* JSW Energy* – India’s leading integrated – Engaged across the value chain of steel producers (Current installed crude power business steel production capacity of ~18 MTPA – Operational capacity: ~ 4.56 GW being ramped to ~24 MTPA – Market capitalisation of US$7.6 bn(a
Slide 6: JSW Steel – among India's leading steel manufacturers
JSW Steel – among India’s leading steel manufacturers – Integrated steel manufacturing – Installed crude steel capacity of ~18 facilities – from raw material MTPA, at strategic locations in processing plants to value-added South and West India product capacities One of the leading Integrated steel p
Slide 7: Transformational journey to market leadership
Transformational journey to market leadership Capacity (MTPA) Total revenue (US$m)(a) EBITDA (US$m) 12,328 2,750 18.0 10,647 2,147 7.8 2,829 2,895 603 539 1.6 252 40 FY02 FY10 FY19 FY02 FY10 FY18 FY19 Q1 FY20 FY02 FY10 FY18 FY19 Q1 FY20 Market cap (US$m)(b) FY02 FY10 FY19 7,897 • Adopting industry l
Slide 8: Key credit highlights
Key credit highlights 1 One of the leading domestic steel player 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
Slide 9: Key highlights
Key highlights JSW Group and Appendix company overview
Slide 10: One of the leading domestic steel player and well placed to benefit through the cycle
1 One of the leading domestic steel player and well placed to benefit through the cycle Fastest growing large steel player in India JSW Steel crude steel production as a % of India crude steel production FY09-19 crude steel production CAGR 16% 16.2% 11% 11.5% 7% 6.5% 1.9% 3.7 8.5 16.7 FY09 FY13 FY19
Slide 11: Leading domestic steel player well placed through the cycle (continued)
1 One of the leading domestic steel player and well placed to benefit through the cycle (continued) Long term fundamentals of Indian steel demand are strong, albeit the recent slow down India is one of the fastest growing major economies Significant room for improvement in per-capita Positive India
Slide 12: Strong business profile diversified by region, markets and products
Strong business profile diversified by region, markets 2 and products Geographically diversified with manufacturing facilities in South and Flexibility to judiciously shift between domestic and international markets West India along with strategic overseas presence based on market conditions India F
Slide 13: Strong business profile diversified by region, markets and products (continued)
Strong business profile diversified by region, markets 2 and products (continued) HR GC/GL/ Color Slabs HRC CRC Plates GI Coated Wide offering of flat and long products Billets RCS/Blooms Bars/Rods Wire Rods Diversified portfolio to address growing demand for value-added steel Commissioned new f
Slide 14: Strong focus on operational efficiency with best-in-class conversion costs
Strong focus on operational efficiency with best-in-class 3 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 15: Robust financial profile and stable cash flows
4 Robust financial profile and stable cash flows Strong track record of volume growth Positive momentum in operating revenues 31.7% 20.9% 15.8% 12,298 15.55 15.60 10,623 14.70 8,784 12.30 6,671 2,875 3.66 (a) FY16 FY17 FY18 FY19 Q1 FY20 FY16 FY17 FY18 FY19 Q1 FY20 Consolidated saleable steel (MTPA)
Slide 16: Prudent leverage management
5 Prudent leverage management Publicly stated financial policies Focused leverage Diversify Improve debt management funding sources maturity profile Strong y-o-y profitability improvement => reduction in net leverage Diverse sources of funding(d) (e) 6,124 6,288 5,716 7,577 8,384 Bonds and deb
Slide 17: Proven track record of growth through organic and inorganic expansions
Proven track record of growth through organic and 6 inorganic expansions Combination of organic and inorganic growth Key new projects 2007 2011 2013 2015 2017 2019 India 2009 • 3.8 MTPA • 49.3% • 14.3 • CRM2 – • 74% stake in Praxair’s(c) • Preferred • Capacity industrial gases JV(d) • Dolvi: Increas
Slide 18: Case study: Turnaround strategy at JSW Ispat's Dolvi plant
Proven track record of growth through organic and 6 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 19: Detailed capex plan and strategic rationale
Proven track record of growth through organic and 6 inorganic expansions (continued) Detailed capex plan… …based on a well thought-out guidelines / strategic rationale 7,069 7,069 Pellet plant, 213 843 Coke ovens, captive power plant, pipe 929 Focus on return metrics instead of pure capacity addit
Slide 20: 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 21: Conclusion
Conclusion One of the largest steel manufacturers and exporters in India; 53% ( FY19) share of VASP and special products(a) Market leadership in one of the fastest growing major economies Fastest growing large steel player in India with 16.2% crude production CAGR FY09-19 of the world Low per capita
Slide 22: Appendix
Appendix JSW Group and company Key highlights overview
Slide 23: Consolidated financials
Consolidated financials Particulars (a) FY16 FY17 FY18 FY19 Q1 FY20 (US$m) Operating revenue 6,671 8,784 10,623 12,298 2,875 (b) Operating EBITDA 929 1,766 2,147 2,750 539 % margin 13.9% 20.1% 20.2% 22.4% 18.8% Profit before tax (355) 746 1,110 1,621 257 Profit after tax (70) 503 887 1,092 146 Share
Slide 24: Standalone financials
Standalone financials Particulars (a) (b) FY16 FY17 FY18 FY19 Q1 FY20 (US$m) Crude steel 12.56 15.80 16.27 16.69 4.24 production Saleable Steel sales 12.13 14.77 15.62 15.76 3.75 (MT) Operating revenue 5,929 8,258 9,827 11,133 2,539 Operating EBITDA 924 1,675 1,994 2,670 541 % margin 15.6% 20.3% 20.
Slide 25: Performance on sustainability metrics
Performance on sustainability metrics Waste gas Material utilization 4.5 MnT 96%+ recycled rate for FY19 Recognised as one of the “Steel Sustainability 2019 1 Champion” by World Steel Association Recycled and 19,161 reused water ‘000Kl 2018 Deming Award for Vijayanagar Works 26.14 1 LTIFR(a) in Spec
Slide 26: Thank you
Thank you
JSW Steel — Debt Investor Presentation (September 2019) on 6ix