Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (April 2023)
37 slides from Jindal Stainless's investor presentation, Apr 24, 2023
Slide 1: Intimation of Investors Meetings & Corporate Presentation
@& we J IN April 24, 2023 BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department, Exchange Plaza, 5th Floor, Ist 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-400
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 Overview 2 Stainless steel Sector Dynamics & Diversified Applications 3 Merger Overview 4 Capex Overview 5 Annexure
Slide 5: Overview
Overview 4
Slide 6: Snapshot: Jindal Stainless - Leader in Specialized Products
Snapshot 5 Jindal Stainless – Leader in Specialized Products #1 #5 ~5 >120sku Stainless steel player Top Global Player Decades of Group Diversified High End in India Ex-China Excellence Product Mix 40+ ~3mtpa ~Rs.355bn ~Rs. 38bn Stainless steel Capacity – Revenues (Net)* Exports to countries with sc
Slide 7: Company – JSL Overview
Company – JSL Overview 6 Largest integrated stainless steel Company in India with manufacturing facilities located at Jajpur, Odisha and Hisar, Haryana Product Basket Robust logistics infrastructure, including in-house railway sidings, with close proximity to ports provide strong support to overall
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 Hisar manufacturing facility in Jajpur, Odisha – Close proximity to the northern market Hisar Gurugram Delhi Corporate Office Ahmedabad Kolkata Vadodara Jajpur Mumbai Pune Hyderabad Strategically located manufacturing Chennai facility in Jajpur, Odisha JSL and Associate Sales O
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: Structure Post Merger
Structure Post Merger 17 Public Promoter 42.1% 57.9% ● 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 (mobility), ● A
Slide 19: Among Top Global Stainless Steel Players
Among Top Global Stainless Steel Players 18 Enhanced Competitive Edge Tsingshan TISCO POSCO Acerinox Outokumpu Jindal Stainless Among Top 5 global Aperam players (Ex-China) Chengde Jiangsu Delong LISCO JISCO Acciai Speciali Terni Baosteel Stainless Steel NSSMC Lianyungang Huale Alloys 0 1,000 2,000
Slide 20: Merged Proforma Performance
Merged Proforma Performance 19 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 21: Consolidating Balance Sheet Strength
Consolidating Balance Sheet Strength 20 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
Slide 22: JUSL Performance
JUSL Performance 21 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 ending December 31, 2022; All figures in INR. crore unless stated otherwise
Slide 23: Key Drivers
Key Drivers 22 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 24: Capex Overview
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Slide 25: Integrated expansion for Atmanirbhar Bharat
Integrated expansion for Atmanirbhar Bharat 24 Existing Incremental Total JSL Est. Capex Est. JSL Projects Capacity Capacity MTPA INR Cr Completion Status 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
Slide 26: Leadership Play
Leadership Play 25 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 27: JSL: Subsidiaries
JSL: Subsidiaries 26 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 28: JSHL: Subsidiaries
JSHL: Subsidiaries 27 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 29: Shareholding Pattern
Shareholding Pattern 28 JSL (Merged Entity) Floating Stock (%) FII 21.9% Promoters Other 57.9% 42.1% Retail & Others 13.9% DII 6.2% Note – Data as on 31st March, 2023
Slide 30: Promoters' pledging: clarification
Promoters’ pledging: clarification 29 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 31: Contact Us
Contact Us 30 About Us: Jindal Stainless is India's leading stainless steel producer with manufacturing facilities at Jajpur, Odisha and Hisar, Haryana, and an overseas unit in Indonesia. It has six service centres in India and one Shreya Sharma / Kapil Joshi in Spain, besides a worldwide network of
Slide 32: Thank You
Thank You 31
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) 1,011 203,119 916 825 836 169,995 123,201 116,791 EBITDA (Rs. mn) PAT (Rs. mn) 16,745 27,908 8,272 13,959 15,568 11,748 4,279 1,529
Slide 35: JSL: Debt position & Key ratios
JSL: Debt position & Key ratios 34 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 36: JSHL: Consistent performance
JSHL: Consistent performance 35 Stainless Steel Sales Volume (KT) Net Revenue (Rs. mn) 135,493 702 102,846 600 577 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 37: JSHL: Debt position & Key ratios
JSHL: Debt position & Key ratios 36 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
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