Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (August 2023)
49 slides from Jsw Steel's investor presentation, August 2023
Slide 1: Corporate Presentation
Corporate Presentation August 2023
Slide 2: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The
Slide 3: Agenda
Agenda Sustainability 4 Overview 7 Key Investment Highlights 13 Digitalisation at JSW Steel 35 Appendix 39 JSW Steel Corporate Presentation: August 2023 3
Slide 4: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: August 2023 4
Slide 5: Sustainability at JSW Steel
Sustainability at JSW Steel ESG Focus Areas Driving Sustainability Initiatives Across Platforms Environment Social Climate Energy Resources change Indigenous Cultural Employee people heritage wellbeing Water Waste Waste Water resources Local Social considerations sustainability Air emissions Biodive
Slide 6: Climate Change: Emission Target and Initiatives
Climate Change: Emission Target and Initiatives Planned/ Potential initiatives to reduce CO2 intensity Derivation of carbon emission target for 2030 3.0 2.5 India NDC target Energy Transition from thermal to Renewable in steel making 2.40 as per Paris Accord 2.0 1.95 JSW Steel target Reduction of Co
Slide 7: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: August 2023 7
Slide 8: JSW Group: Key Verticals
JSW Group: Key Verticals • India’s largest steel producer • Capacity of 6.7 GW (Hydro, • Capacity of 160,000 klpa • Ports capacity of 153 mtpa • Capacity of 29.7 mtpa, growing Renewable and Thermal) • State-of-the-art fully- • Operations across East, to 38.5 mtpa by FY25 • Growing to 20 GW by 2030 a
Slide 9: JSW Steel: Among India's Leading Steel Manufacturers
JSW Steel: Among India’s Leading Steel Manufacturers One of the leading steel players Diversified product portfolio Integrated manufacturing process in India • Extensive product portfolio • Most geographically diversified steel • From raw material processing plants HRC, CRC, Coated, Tinplate, Electr
Slide 10: Transformational Growth and Value Creation
Transformational Growth and Value Creation India Capacity (mtpa) Total Revenue (₹ 000’s Cr) EBITDA (₹ 000’s Cr) CAGR FY03-23: 23% CAGR FY03-23: 15% CAGR FY03-23: 18% 27.7 167.0 27.0 39.0 147.9 18.0 18.0 18.0 18.0 85.0 80.4 20.1 73.4 73.9 19.0 18.5 14.8 7.8 11.9 19.5 4.2 1.6 2.5 0.7 FY03 FY10 FY18 FY
Slide 11: Strategic Priorities to Create Shared and Sustainable Value
Strategic Priorities to Create Shared and Sustainable Value Cost leadership Being future Enhance value- Mainstreaming through ready through Strategic growth added product Strong financial sustainability resource technology-led with efficient portfolio with profile and across the optimisation and tra
Slide 12: Healthy Outlook on Strong Domestic Steel Demand
Healthy Outlook on Strong Domestic Steel Demand Resilient operating and Falling RM prices to offset Strong outlook for India financial performance impact of steel price decline • Sales volume up 27% YoY on higher • Falling iron ore and coking coal • Govt.’s infrastructure drive is capacities and rob
Slide 13: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: August 2023 13
Slide 14: Key Investment Highlights
Key Investment Highlights Leading steel producer in India with plans to expand domestic capacity to 37mtpa by FY25 and to 1 Size, Scale & Growth 50mtpa by FY31 2 Efficiency Lowest cost of conversion in India, one of the lowest globally. Strong domestic iron ore linkage Strong margins further enhance
Slide 15: Leading and Most Geographically Diversified Steel Producer in India
1 Leading and Most Geographically Diversified Steel Producer in India India International Europe Rajpura BPSL Chandigarh Bawal Piombino, Italy BPSL Kolkata Kalmeshwar Plate & Coil Mill, Anjar USA Khopoli Vasind & Tarapur BPSL Jharsuguda: 3.5 mtpa Dolvi: 10 mtpa Raigarh: 0.95 mtpa Ohio: 1.5 mtpa Vija
Slide 16: Strong Fundamentals for India Steel Demand
1 Strong Fundamentals for India Steel Demand Significant room for Healthy Steel Demand Outlook in India growth in steel India Steel: Strong Fundamentals (mt) consumption in India Government Capex (INR tn)2 Production-Linked China, Incentive Scheme1 Crude Steel Crude Steel Finished Steel 646 10.0 Cap
Slide 17: Aligned to India's Growth Story
1 Aligned to India’s Growth Story Near-term growth to take JSW Steel India capacity to 37mt; potential to scale up to 50mt by end of decade Vijayanagar BPSL JISPL 28.2 37.0 50.0 13.0 0.3 2.0 1.5 Pathway to 50mtpa 1.5 5.0 5.0 1.2 3.5 Organic Growth Options • Brownfield growth potential of ~5mt at eac
Slide 18: One of the Lowest Costs of Conversion Globally
2 One of the Lowest Costs of Conversion Globally Resilient business model based on continued focus on cost leadership WSD Aggregate Ranking(1) Leading position on global conversion cost curve – Conversion cost of c.$149/tonne in FY23 # 5 ranked in Asia Technology, analytics and innovation continue t
Slide 19: Strong Domestic Iron Ore Linkage
2 Strong Domestic Iron Ore Linkage 13 operational captive iron ore mines Raw material security ensuring raw material supply Steel Plants • Operating 9 mines in Karnataka and 4 mines in Odisha Karnataka – 9 mines Mines • Won 2 mines in Karnataka, 2 in Goa and 2 exploration blocks in Maharashtra in •
Slide 20: Steel Products for Diverse Applications
3 Steel Products for Diverse Applications Infra & Construction Consumer Durables Pipes & Tubes • Buildings (Resi. & Commercial) • Refrigerators • Roads • Air Conditioners Key Products • Bridges • Home Appliances • Metro & other Urban Infra • Tinplate for Packaging • Airports • Oil & Non-Oil Cans • H
Slide 21: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Super premium, colour coated coils & sheets, with a 20 year warranty Colour Coated • Premium colour coated coils & sheets, with a 15 year warranty. • 3 variants - Cool Roof, Anti Dust & High Gloss • High quality Al-Zn alloy & colou
Slide 22: Strong focus on building brands and increasing value added sales
3 Strong focus on building brands and increasing value added sales • Tinplate coils and sheets with high strength and formability, used in food and non-food packaging • Al-Zn-Mg coated galvanized steel that offers 5x better protection than GI against moderate to aggressive corrosive environments • A
Slide 23: JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel
3 JSW Magsure: Superior Zn-Mg-Al Alloy Coated Steel Solar Structures • JSW Steel has developed a new coated product for Solar applications, that offers up to 4x corrosion resistance than conventional Galvanised or Galvalume coated steel sheets • 1st company in India to produce Zn-Mg-Al Coated Steel
Slide 24: Contributing to India's High Speed Rail Journey
3 Contributing to India’s High Speed Rail Journey Supplying Steel to Mumbai Ahmedabad Bullet Train Project • Mumbai–Ahmedabad High Speed Rail (MAHSR) Corridor is the first of the twelve lines planned by the government. It will cover more than 500 km in 2 hours and 58 minutes with a maximum speed of
Slide 25: Our Commitments: No harm to People, Environment & Society
4 Our Commitments: No harm to People, Environment & Society Climate Change & Renewable Energy Circularity & Biodiversity Water Security Air Emissions 42% reduction of CO2 to Transition from thermal to Promoting Circular Economy Maintaing zero liquid discharge 70% reduction of specific process 1.95tC
Slide 26: Building a Strong Health & Safety Culture
4 Building a Strong Health & Safety Culture JSW Steel’s Vision 000 Zero Safety Initiatives & Recognitions Zero Zero major injury harm incidents Capability Building Initiatives • Establishing Centres of Excellence for Process LTIFR Safety Management across plant locations 0.43 • Competency Framework
Slide 27: Our Commitment to Society
4 Our Commitment to Society Water, Environment & Sanitation Key Intervention Areas JSW Foundation and Hindustan Unilever announced a new Health & Agriculture partnership to launch 10 new Nutrition Suvidha Centres in Mumbai Water, • To benefit 200,000 people Environment & Education annually through a
Slide 28: Our Commitment to Society
4 Our Commitment to Society Art, Culture & Heritage Restored Mumbai’s iconic David Sassoon Library • Victorian Neogothic-style structure, originally built in 1867 • Situated in Kala Ghoda, in the UNESCO World Heritage Precinct of Mumbai • Restored in record 16 months in collaboration with Abha Narai
Slide 29: Environmental Performance
4 Environmental Performance Specific Energy Consumption (Gcal/tonne) GHG Emission Intensity (tCO2/tcs) Specific Freshwater Consumption (m3/tcs) 6.56 2.60 6.38 2.52 2.49 2.50 2.44 2.36 6.04 2.45 2.45 2.44 5.70 2.41 5.66 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY
Slide 30: Strong Board and Experienced Management Team
5 Strong Board and Experienced Management Team Chairperson - Emeritus Chairman and MD Savitri Devi Jindal Sajjan Jindal JSW-JFE partnership Partnership overview Executive Directors • 14.99% minority stake bought by JFE in 2010 • Announced JV in 2023 for setting up a CRGO Jayant Acharya Gajraj Singh
Slide 31: Proven Track Record of Efficient Organic and Inorganic Growth
6 Proven Track Record of Efficient Organic and Inorganic Growth Combination of organic and inorganic growth 2002-2005 2006 2007 2009 2010 2011-2012 • Capacity expanded from • Capacity increased to • Capacity • 3.5 mtpa (HSM-2) • 49.3% stake in • Capacity 1.6 mtpa to 2.5 mtpa 4.8 mtpa increased • JSW
Slide 32: Prudent Capital Allocation: Strong Financial Growth
7 Prudent Capital Allocation: Strong Financial Growth Strong track record of volume growth Track record of Total Revenues (₹ 000’s Cr) 12.63 12.56 15.80 16.27 16.69 16.06 15.08 18.96 23.62 167.0 147.9 21.86 17.69 14.68 15.55 15.60 14.90 14.95 85.0 80.4 12.03 12.25 73.4 73.9 60.7 53.1 46.2 FY15 FY16
Slide 33: Prudent Capital Allocation: 10 Year TSR CAGR of 32%, and Uninterrupted Dividends
7 Prudent Capital Allocation: 10 Year TSR CAGR of 32%, and Uninterrupted Dividends ROCE Uninterrupted Dividends (₹/share) 29.8% 20.0 15.0 19.6% 19.5% 16.4% 10.0 14.8% 3.4 5.0 7.60% 6.3% 9.6% 0.0 FY19 FY22 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY20 FY21 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 34: Debt Profile and Credit Ratings
8 Debt Profile and Credit Ratings Net Gearing (ND/Equity) within Leverage (ND/EBITDA) within the stated cap of 1.75x the stated cap of 3.75x Diversified Funding Sources 1.75x 4.50x 1.48x 1.34x 3.75x 1.17x 3.20x Bonds and 0.96x 2.40x 2.61x 3.14x INR debt, debentures, 0.83x 0.89x Foreign 42% 41% 1.45x
Slide 35: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: August 2023 35
Slide 36: Digitalization: Strategy, Execution and Impact
Digitalization: Strategy, Execution and Impact Wave 4 and Digital Vision-2026* Expand and scale Digital to best-in-class: Guiding Principles – Sales & Marketing End-to-End Value Lens | Democratize – Manufacturing & Mining (O&M, Quality) Transformation Continuous Digitalization – Sustainability, Safe
Slide 37: JSW Steel's Digital Focus Areas
JSW Steel’s Digital Focus Areas Increased Sales Additional Focus s Mining Supply Safety, Security, Governance Cost Optimization Chain Anticipated Impact Sustainability led R&D Asset Availability Primary Finance Focus Manufacturing Cultural Transformation Emissions Reduction s Integrated Control Towe
Slide 38: Leveraging Data Science Technologies
Leveraging Data Science Technologies Machine Learning • Blast Furnace optimization and anomaly Standard & Advanced Analytics detection (Channeling and Heat • Integrated Control Tower (ICT) for Guidance Model) Operational Intelligence • Ferro-alloy optimization using AI-ML • Sales Analytics dashboard
Slide 39: Agenda
Agenda Sustainability Overview Key Investment Highlights Digitalisation at JSW Steel Appendix JSW Steel Corporate Presentation: August 2023 39
Slide 40: Global Steel
Global Steel Crude Steel Production – Jan-June (mt) Steel Demand (mt) China Steel Production and Export (mt) Jan-June CY21 Jan-June CY22 Jan-June CY23 CY22 CY23F (Oct 22) CY23F (Apr 23) CY24F (Apr 23) China Crude Steel Production (LHS) 150 10 -1.1% +2.3% Exports (RHS) 8 +1.3% 100 944 6 1,854 1,822 1
Slide 41: Indian Steel: QoQ Trend
Indian Steel Production and Consumption (mt) Steel Imports (mt) Steel Exports (mt) Q1 FY23 Q4 FY23 Q1 FY24 Finished Semis Finished Semis +8.4% +10.2% 2.88 QoQ Trend 34.04 33.63 YoY YoY 2.00 32.76 1.58 -21.1% 2.34 2.33 -0.4% 31.03 30.30 0.38 0.69 QoQ QoQ 27.50 1.23 0.18 0.36 0.28 0.06 +28.6% -19.3% 1
Slide 42: Q1 FY24 Production & Sales and FY24 Guidance
Q1 FY24 Production & Sales and FY24 Guidance In million metric tonnes Crude Steel Crude Steel Production & Sales Sales Sales Production Production Q1 FY24 Q1 FY23 Consolidated India Operations 6.19 5.47 5.62 4.33 USA – Ohio Operations 0.24 0.23 0.16 0.16 JSW Steel Consolidated Operations 6.43 5.71 5
Slide 43: Value Accretive Capex Pipeline
Value Accretive Capex Pipeline India Capex Plan Highlights of Capex Plan Rs.4,094 cr spent in Q1 FY24 • Adding 9mtpa steelmaking capacity in next two years Actual Spent 18,800 18,500 • Strong emphasis on decarbonisation: 14,214 14,625 o Best Available Technologies (BAT) ▪ Coke Dry Quenching in coke
Slide 44: Key Project Updates – Vijayanagar
Key Project Updates – Vijayanagar 5mtpa Brownfield Project • Construction activities for all packages underway • Refractory erection commenced for BF package • BOF vessel erection to commence in July • Equipment erection for all areas of HSM underway • Project to be completed by end of FY24 Coke Ove
Slide 45: Key Project Updates – BPSL & Other Downstream
Key Project Updates – BPSL & Other Downstream Phase-II Expansion from 3.5 to 5 MTPA • Key equipment received at site for Wire Rod Mill-2, SMS-2, Lime Calcination Plant-6. Civil, Structural & Equipment erection work in progress • Project expected to be completed by the end of FY24 Other Downstream Pr
Slide 46: Case study: Turnaround Strategy at JSW Ispat's Dolvi plant
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 Completed initiatives – December 2010 FY2016 – 2017 FY2018 – 2022 FY2011 – 2015 • Plant under maintenance • Infusion
Slide 47: Awards & Recognitions in FY23
Awards & Recognitions in FY23 Golden Peacock Award 2023 JSW Salem – won the Dolvi JSW Works recognized One of the only 3 steel for Innovative Sword of Honour award with 5-star Safety rating from companies globally to product/service – JSW Steel from British Safety British Safety Council achieve CDP
Slide 48: Our Steel is Helping Build Key Infrastructure in India
Our Steel is Helping Build Key Infrastructure in India Solar Project: Contributed 2.3 GW Wind Project: Contributed 1.4 GW Metro Projects: 57 km of Metro project lines High Speed Rail (Mumbai-Ahmedabad Bullet (Mumbai, Pune, Nagpur, Bengaluru, Train) Project Ahmedabad, Chennai, Indore, Kochi & Delhi)
Slide 49: THANK YOU
THANK YOU Investor Relations Contact: ir.jswsteel@jsw.in