Jindal Stainless Limited · NSE:JSL
Jindal Stainless — Investor Presentation (May 2018)
36 slides from Jindal Stainless's investor presentation, May 2018
Slide 1: Corporate Presentation – May 2018
Corporate Presentation – May 2018 JINDAL STAINLESS LIMITED
Slide 2: 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 3: Content
Content 3 1 Company Overview 2 Stainless Steel Sector Dynamics 3 Key Business Highlights 4 Financials 5 Conclusion 6 Annexure
Slide 4: Company Overview
Company 4 Overview
Slide 5: 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 0.8Mn Tonnes ~` 108bn ~` 13bn Acre Total Land Area Per Annum Stainless Steel FY18 Revenues (Net)*
Slide 6: Company Overview
Company Overview 6 Largest stainless steel manufacturer in India Product Basket Operates an integrated stainless steel plant at Jajpur, Odisha – ‘State-of-the-Art’ machinery and engineering from the best of European suppliers, capable of producing globally competitive stainless steel products Well e
Slide 7: Jindal Stainless Group
Jindal Stainless Group 7 Jindal Stainless Limited (JSL) Jindal Stainless (Hisar) Limited (JSHL) • PT Jindal Stainless Indonesia (PTJSI) • Jindal Stainless Steelways Ltd. • Iberjindal Spain • JSL Lifestyle Ltd FY18* (Rs. mn) FY18* (Rs. mn) Revenue (Net) 107,850 Revenue (Net) 92,590 EBITDA 12,810 EBIT
Slide 8: Stainless Steel Sector Dynamics
Stainless Steel 8 Sector Dynamics
Slide 9: Favourable sector dynamics
Favourable sector dynamics… 9 Healthy growth in global stainless steel demand… …with the fastest growth of metal Stainless Steel 5.3% 45.8 41.7 41.5 Aluminium 3.9% 38.5 25 Years CAGR 33.6 35.9 Copper 2.7% (mt) Zinc 2.4% Carbon Steel 2.2% 2011 2012 2013 2014 2015 2016E Lead 1.8% India continues to be
Slide 10: Consumption Pattern diversifying across categories
Consumption Pattern diversifying across categories 10 1998 2015 2023E 6% 7% 20% 11% 13% 1% 2% 2% 38% 3% 17% 57% 7% 25% 80% 12% Over the past 2 decades, stainless steel consumption in India has moved away from the most primary usage in cookware/durable to new value added categories of ABC, ART and pr
Slide 11: Stainless 'Value-Added' Steel
Stainless ‘Value-Added’ Steel 11 Low Maintenance Weldability Recyclability Chromium (Cr) Added to enhance Nickel (Ni) the structure and achieve desirable properties of Aesthetics Durability Nitrogen (N) corrosion Stainless resistance, hardness, Steel Molybdenum strength, machinabilit y, etc. Low Lif
Slide 12: Stainless Steel Product Applications
Stainless Steel 12 Product Applications 360o Product Applications Jindal Stainless caters to a wide range of products…
Slide 13: Architecture Building Construction (ABC)
13 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 SS roofing sheets Gates Railway station upgradation
Slide 14: Automobile Railway Transport (ART)
14 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
15 Process & Engineering Nuclear grade SS 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
16 Consumer Durables Washing Machine Microwave Refrigerator Utensils Components thereof
Slide 17: Consumption Trends
Macro factors driving domestic SS Consumption Trends 17 Emerging Trends expected to drive SS usage Increasing shift towards SS in making Railway wagons and coaches Automobile Railway New Trends in Auto sector like SS Fuel Tanks, BS-VI compliant exhaust Transport (ART) systems, SS Bus Body, etc. driv
Slide 18: NewAge Applications
NewAge Applications 18 SS emerging as a Successfully Indian Railways to perfect metal for BS- developed Stainless introduce all Stainless VI compliant exhaust Steel fuel tanks for Steel body coaches system commercial vehicles and wagons Innovative solutions driving usage in newer applications
Slide 19: Key Business Highlights
Key Business 19 Highlights
Slide 20: Integrated operations with huge opportunity to drive operating leverage
Integrated operations with huge opportunity to drive operating Leverage 20 ~800 ACRE 950,000TPA 250,000TPA 100,000TPA 264 MW 450,000TPA Total Land Area Hot Rolled Ferro-Alloys Mill Plate Captive Power Plant Cold Rolled Annealing Annealing Pickling line Annealing & Pickling (scalable upto 500MW Pickl
Slide 21: Structural initiatives leading to sustainable turnaround
Structural initiatives – leading to sustainable turnaround 21 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 22 Chandigarh Gurgaon Delhi Corporate Office Odisha Jodhpur Jajpur Ahmedabad Kolkata Dhamra Port Vadodara Jajpur Paradip Port Bhubaneswar Mumbai Pune Kothavalasa Visakhapatnam Hyderabad Bangalore Strategically located Chennai manufacturing facility in Jajpur, Odisha – Close
Slide 23: JSL – Global Footprint
JSL – Global Footprint 23 Poland Russia Germany Belgium Italy Spain USA China South Korea Turkey Vietnam UAE Thailand Malaysia Indonesia Brazil JSL and Associate Sales Offices JSL and Associate Service Center Manufacturing Facility
Slide 24: Key Growth Drivers
Key Growth Drivers 24 Structural growth of Stainless Steel demand in India • One of the fast 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 demand
Slide 25: Financial and Operational overview
Financial and Operational 25 overview
Slide 26: Turnaround in performance
Turnaround in performance 26 SS Production Volume(MT) SS Sales Volume (MT) Utilisation Revenue (Rs. mn) 100% CAGR: 28.5% 107,850 90% 75% 83,110 Thousands 797 779 65,280 723 604 641 534 FY16 FY17 FY18 FY16 FY17 FY18 EBITDA (Rs. mn) Margins (%) PAT (Rs. mn) PAT Margin (%) CAGR: 56.8% 13% 1% 3,180 12%
Slide 27: Focus on strengthening the Balance Sheet
Focus on strengthening the Balance Sheet 27 Debt (Rs. mn) Debt/Equity Ratio Debt/EBITDA 6.1 19.3 100,369 3.2 2.0 5.1 3.7 56,281 47,288 FY16 FY17 FY18 FY16 FY17 FY18 ROE (%) Working Capital days 3.5% 15.5% Debtors Days 151 Inventory Days 124 52 103 38 28 100 75 86 -61.1% FY16 FY17 FY18 FY16 FY17 FY18
Slide 28: Conclusion
Conclusion rest ene
Slide 29: Leadership Play
Leadership Play 29 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 30: Focus on expanding Brand and Market presence
Focus on expanding Brand and Market presence 30 Investing in various Branding & marketing initiatives to enhance overall market potential by: – Creating awareness of hygiene and health benefits of SS – Increase usage of SS in Home and Public Spaces Home Smart Home Campaign SS Doors SS Water Tank SS
Slide 31: Annexure
Annexure 31 31
Slide 32: JSL Stainless Ltd Global Outreach
JSL Stainless Ltd 32 Global Outreach Iber Jindal Spain 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
Slide 33: Asset Monetization Plan (AMP)
Asset Monetization Plan (AMP) 33 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 – 800,000 MTPA • Hot strip Mill – • Coke Oven – –
Slide 34: Key Market Statistics
Key Market Statistics 34 Key Market Statistics As on March 31, 2018 BSE/NSE Ticker JSL/ 532508 Industry Stainless Steel CMP (Rs.) 78.6 Market Cap (Rs. mn) 37,667 Number of outstanding shares (mn) 479.2 Face Value (Rs.) 2.00 52-week High / Low (Rs.) 126.05/69.35 Floating Stock (%) Retail & Others Pro
Slide 35: Contact Us
Contact Us 35 About Us: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless Anurag Mantri / Shreya Sharma steel manufacturer. The Company operates an integrated stainless steel plant at Jajpur, Odisha. The complex has
Slide 36: Thank You
Thank You 36