Jsw Steel Limited · NSE:JSWSTEEL
Jsw Steel — Investor Presentation (February 2021)
30 slides from Jsw Steel's investor presentation, February 2021
Slide 1: JSW Steel Limited Corporate Presentation
JSW Steel Limited JSW Steel Limited Corporate Presentation Investor August, 2020 presentation February 2021
Slide 2: Disclaimer
Disclaimer 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 risk and uncertainties relati
Slide 3: Sustainability
Sustainability JSW overview Key Appendix Appendix Appendix highlights
Slide 4: Sustainability Framework and Priorities
Sustainability Framework and Priorities 17 Focus Areas Governance & Oversight By Board-level Climate Change : Biodiversity : No Net Loss for Business Responsibility And • Aligned to India’s Nationally Biodiversity Sustainability Committee Determined Contributions for Climate Change as per Paris Acco
Slide 5: Environmental Targets and Performance
Environmental Targets and Performance SD Targets FY05 FY30 Target Improvement Key Highlights – 9M FY2021 • Environment Product Declaration for HRC, CRCA; all other finished • Specific Energy 6.94 5.91 Gcal/ tcs 15% products under life-cycle analysis Climate • Rated at Leadership Level by CDP Change
Slide 6: Social Initiatives
Social Initiatives Health and Safety Empowering communities JSW is committed to providing a safe and healthy working environment and achieving an injury and illness free work • Improving nutrition status of 92,000+ place. Our vision is to achieve children & mothers ‘Zero Harm’ • Mid-day meals to 1,5
Slide 7: JSW overview
Sustainability JSW overview Key highlights Appendix Appendix Appendix
Slide 8: JSW Group – overview
JSW Group – overview JSW JSW JSW JSW JSW Steel* Energy* Infra Cement Paints 18 MT 4.6 GW 98 MT 14 MT 125,000 KL JSW Steel* JSW Energy* JSW Infrastructure JSW Cement JSW Paints • India’s leading • Engaged across the • Engaged in • Manufacturer of • Commenced value chain of power development and Portl
Slide 9: JSW Steel – among India’s leading steel manufacturers
JSW Steel – among India’s leading steel manufacturers • Integrated steel manufacturing • Installed crude steel capacity of facilities – from raw material c.18 MTPA, at strategic locations processing plants to downstream in South and West India value-added product capacities • Captive Iron Ore Mines
Slide 10: Transformational journey to market leadership
Transformational journey to market leadership Capacity (MTPA) Total revenue (US$m)(a)(b) EBITDA (US$m)(a) 11,628 18.0 18.0 18.0 18.0 2,594 10,043 10,110 2,025 7,300 1,625 1,601 7.8 2,667 569 1.6 237 37 FY02 FY10 FY18 FY19 FY20 9M-FY21 FY02 FY10 FY18 FY19 FY20 9M-FY21 FY02 FY10 FY18 FY19 FY20 9M-FY21
Slide 11: Key highlights
Sustainability JSW overview Key Appendix Appendix Appendix highlights
Slide 12: Key highlights
Key highlights Established steel player with track record of successfully navigating through 01 multiple cycles and emerging stronger 02 Strong business profile diversified by region, markets and products 03 Strong focus on operational efficiency with best-in-class conversion costs 04 Increasing int
Slide 13: Established steel player navigating multiple cycles
1 Established steel player with track record of successfully navigating through multiple cycles and emerging stronger India GDP 9.3 9.3 9.8 3.9 8.5 10.3 6.6 5.5 6.4 7.4 8.0 8.3 7.0 6.1 4.2 growth (% YoY) India crude steel 6.9 9.5 5.9 8.7 12.5 7.3 5.1 5.6 4.2 8.9 (0.2) 10.3 5.3 7.6 (2.2) output (% Yo
Slide 14: Strong business profile diversified by region, markets and products
2 Strong business profile diversified by region, markets and products Geographically diversified with manufacturing facilities in South and Flexibility to judiciously shift between domestic markets and exports based West India along with strategic overseas presence on market conditions(b) India Fini
Slide 15: Diversified product portfolio (continued)
2 Strong business profile diversified by region, markets 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 Tin Rods Plate Diversified portfolio to address growing demand for value-added steel Commissi
Slide 16: Strong focus on operational efficiency with best-in-class conversion costs
3 Strong focus on operational efficiency with best-in-class conversion costs Parameter(a) Focus on cost leadership has strengthened resilience of business model • Leading position on global conversion cost curve Expanding 10 / 10 8 8 9 6 7 7 Capacity • Conversion cost of c.US$117/tonne in FY20 • Tar
Slide 17: Increasing integration through captive raw material supply
4 Increasing integration through captive raw material supply Captive iron ore mines ensuring adequate raw material supply Increasing raw material security • Volume from operationalised captive Iron ore mines at ~4.1 mtpa in FY20 Karnataka • Bid and won 6 iron ore mines in Karnataka through auctions
Slide 18: Proven track record of growth through organic and inorganic expansions
5 Proven track record of growth through organic and inorganic expansions Combination of organic and inorganic growth 2002 2005 2007 2010 2012 2014 2016 2018 • Capacity at 1.6 • 2.5 MTPA • 3.8 MTPA • 3.5 MTPA (HSM-2) • HSM-2 capacity • New CRM2 – • 18 MTPA • Acero Junction, MTPA expansion to Phase I
Slide 19: Major capex program nearing completion
6 Major capex program nearing completion....benefits to accrue Major capex projects to be completed by H1 FY22 Capacity expansion and enhancements to yield benefits 23.0 Total Capex Expected Projects Name (US$m) completion by 18.0 2x Dolvi expansion to boost flat products Dolvi expansion From 5 MTPA
Slide 20: Robust financial profile and stable cash flows
7 Robust financial profile and stable cash flows Strong track record of volume growth Track record of operating revenues 12.17 12.63 12.56 15.80 16.27 16.69 16.06 10.89 11,600 15.55 15.60 10,020 10,036 14.68 14.90 12.25 8,285 11.85 12.08 10.89 7,010 7,250 7,241 6,293 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 21: Balance sheet strengthened by capital preservation and liquidity management
8 Balance sheet strengthened by capital preservation and liquidity management Leverage to peak in FY21 as covid delays project completion Net gearing well under long term target Low debt on operating capacity Focused leverage 1.75x management 18.5 17.5 1.48x 4.5x 16.1 1.38x 1.34x 1.29x 3.75x INRbn
Slide 22: Experienced management with strong parentage
9 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 23: Conclusion
Conclusion Target near-term capacity: 23mtpa of crude steel and c.10mt of downstream Market leadership One of the largest steel exporters from India Proven track record of successfully navigating through multiple steel cycles and emerge stronger Focus on backward integration offering lower conversio
Slide 24: Appendix
Sustainability JSW overview Key highlights Appendix Appendix Appendix
Slide 25: Reducing Chinese steel exports and gradual domestic recovery
Reducing Chinese steel exports supplemented with gradual domestic recovery bodes well for the domestic steel sector Significant room for improvement in per-capita Global Crude Steel Production (MTPA) trend China steel exports (MTPA) consumption in India 472 479 1,039 (Kg of finished steel products p
Slide 26: 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 – FY2011 – December 2010 FY2016 – 2017 FY2018 – 2021 2015 • Plant under maintenance • Infusion
Slide 27: Key Projects
Key Projects Total project cost – ₹15,000 crore (USD $2,053M) Doubling steel making capacity to enhance capacity of flat products portfolio The major facilities to be set-up under the expansion project are: Upstream Dolvi: Doubling steel making Projects 4.5 MTPA Blast furnace with 5 MTPA Steel
Slide 28: Sustainability - Integral to Our Operating Philosophy
Sustainability - Integral to Our Operating Philosophy Infinite circularity of steel as a product – Scrap steel utilization for steel making Reduce, Reuse, Remanufacture and Recycle throughout its • Rated at Leadership Level (A-) by CDP Circular • WSA Steel Sustainability Champions 2019 Economy s
Slide 29: JSW Group – COVID-19 social initiatives
JSW Group – COVID-19 social initiatives 28
Slide 30: Thank You
Thank You JSW Steel Limited Investor August, 2020 presentation