Slide 1: Intimation of Schedule of Analyst/Institutional Investor Meeting
[ffi PROUD TO BE IND IAN PRIVILEGED TO BE GLOBAL HEG / SECTT / 2020 12th August, 2020 1 BSE Limited 2 National Stock Exchange of India Limited 25th Floor, P J Towers Exchange Plaza, 5th Floor Dalal Sh·eet Plot No.C/1, G Block, Bandra - Kurla Complex MUMBAI - 400 001 . Bandra (E), Scrip Code : 509631
Slide 2: HEG Limited Investor Presentation: Performance Highlights Q1 FY 2020-21
HEG LIMITED Investor Presentation Performance Highlights Q1 of FY 2020-21
Slide 3: HEG is part of LNJ Bhilwara group
HEG is part of LNJ Bhilwara group a diversified, reputed and large Indian business house having more than five decades of industrial experience and presence in THE FAMILY TREE IT Enabled Services Power Generation & Power Consultancy Buds flower in our service sector offerings. The branches spread fo
Slide 4: HEG Limited – Profile
HEG Limited – Profile EUROPE (NON-EU) SOUTH AMERICA • HEG Limited is a leading graphite electrode manufacturer & exporter globally. 3% 4% NORTH AMERICA INDIA 5% • Exports approximately 70% of its production to about 30 countries around the world. 28% • Diversified customer portfolio –supplying large
Slide 5: Business Overview
Business Overview • HEG is among the world’s top five graphite electrode manufacturers Graphite Electrode Capacity (KMT/Year) • Global slowdown in steel has impacted the demand of electrodes worldwide along with excess Chinese capacities has resulted significant correction of electrode prices. 230 2
Slide 6: Our Growth
1977 - Established in Financial (appx 25% equity) / Technical participation of Pechiney, France 1992 - Pechiney sold their Graphite business to SGL, Germany & Indian Promoters bought these shares in HEG 1995 / 2011 – Kept expanding from 10,000 mt in small tranches & in 2011 took a quantum leap
Slide 7: R&D Center
R&D Center R&D set up to corroborate the Quality & Improvement Drives with small scale production facilities The focus is also on development of new product lines Development is focused towards Carbon
Slide 8: World Crude Steel Production Last six Quarters
World Crude Steel Production Last six Quarters ( CY Jan 19 – Jun 20) China Rest of the world (except China & Iran) Highest in 269 last 6 262 Quarters 255 246 PRODUCTION IN MMT 230 234 212 213 201 203 198 -26% Lowest in last 6 158 Quarters CY-Q1’19 CY-Q2’19 CY-Q3’19 CY-Q4’19 CY-Q1’20 CY-Q2’20 HEG Ltd
Slide 9: Outlook for Steel Industry
Outlook for Steel Industry Short-Term Forecast for Steel World steel Association 2019 2020f 2021f 2019 2020f. 2021f. • The situation to gradually improve in the third quarter, but the recovery path will be slow. EU(28) 158.1 M 133.1 M 147.0 M -6% -16% 10% Europe (other) 33.8 M 33.3 M 36.5 M -10% -2%
Slide 10: China's EAF steel Production & Finished steel exports
China's EAF steel Production & Finished steel exports 200 • As per Chinese Blue Sky policy ,Country planned to produce China EAF Production (MMT) 20 % of the steel production by EAF route by year 2020, Hence target steel production for current year should be 200 MMT ( 20 % of 1 Billion steel product
Slide 11: Benefits of EAF Steelmaking & Graphite Electrode Industry
Benefits of EAF Steelmaking & Graphite Electrode (GE) Industry BOF Steel % Electric Steel % • EAF Growth rate in longer term is positive (~3%) 6% 32% • EAF Route is environmentally advantageous as it emits 75% less carbon. 44% 59% 61% 72% • These mills are flexible to operation & Low capital intensi
Slide 12: HEG Ltd © LNJ Bhilwara Group
HEG Ltd © LNJ Bhilwara Group 11
Slide 13: Financial Snapshot
Financial Snapshot in Rs. Crore (except EPS) PARTICULARS Q1 FY’21 FY 19-20 FY 18-19 FY 17-18 REVENUE FROM OPERATIONS 233 2,149 6,593 2,758 EBITDA* 35 138 4,767 1,734 EBIT 17 66 4,695 1,661 PAT 11 53 3,050 1,081 EPS 2.79 13.83 763.60 270.61 EBITDA Margin (%) 15% 6% 72% 63% EBIT Margin (%) 7% 3% 71% 6
Slide 14: 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 13