Jsw Steel Limited · NSE:JSWSTEEL

Jsw Steel — Merger or Acquisition (September 2012)

17 slides from Jsw Steel's merger presentation, September 2012

  1. Slide 1: Merger Presentation

    Merger Presentation September 2012 1

  2. Slide 2: Forward looking and cautionary statement

    Forward looking and cautionary statement The views expressed here may contain information derived from publicly available sources that have not been independently verified. This presentation and its contents are confidential and should not be distributed, published or reproduced (in whole or in part

  3. Slide 3: Agenda

    Agenda JSW Steel – A Decade of Transformational Growth Our Growth Strategy JSW Ispat – Continuing The Growth Story JSW Steel – JSW Ispat Merger: A Combination of Complementing Strengths Transaction Overview Process and Timeline 3

  4. Slide 4: JSW Steel – A Decade of Transformational Growth

    JSW Steel – A Decade of Transformational Growth  One of the fastest growing steel companies in India  Consistent value creation over the last decade  Continuously looking for newer growth avenues (Financials in ` crores) 2012 11 MTPA Business FY02 LTM June 2012 CAGR Capacity (MTPA) 1.6 11.0 21%

  5. Slide 5: JSW Steel – Vision and Pillars of its Growth Strategy

    JSW Steel – Vision and Pillars of its Growth Strategy Vision 40 MTPA Crude Steel Production Capacity by 2020 Organic / Prudent Raw Material Cost Inorganic Value Addition Capital Integration Leadership Expansion Structure  Growth via  Portfolio of raw  Target share of  Blend of  Maintain Net org

  6. Slide 6: JSW Ispat – Continuing The Growth Story…

    JSW Ispat – Continuing The Growth Story… Road Ahead  Cost reduction initiatives: • 55 MW power plant • Lime calcination plant • Railway siding JSW Ispat Steel  Cost reduction initiatives through Amba River Coke: • 1 MTPA coke oven  Refinancing of existing debt • 4 MTPA pellet plant  Rationalizin

  7. Slide 7: Merger – A Combination of Complementing Strengths

    Merger – A Combination of Complementing Strengths JSW Steel JSW Ispat Combination Global Scale – 14.3 MTPA  Creates scale – catapults JSW Steel to the top league in Indian steel sector Capacity  11 MTPA  3.3 MTPA  Propels the merged company amongst top 25 Indian companies in terms of turnover 

  8. Slide 8: Enhanced Scale

    Enhanced Scale Major Indian Steel Players Combined Turnover (Installed (1) capacity in MTPA) (LTM as on June 2012, in ` crores) JSW Steel Post 14.3 Merger SAIL 14.1 43,940 36,593 JSW Steel 11.0 10,724 Essar Steel 10.0 JSW Ispat JSW Steel Pro Forma Tata Steel 9.7 RINL 3.6  The combined entity will b

  9. Slide 9: Enhanced Technological Capabilities

    Enhanced Technological Capabilities  Add DRI / BF-BOF to existing steel making technologies  Broad base technological capabilities  Expand product range Current Technology Mix Post Merger Technology Mix Corex - BOF: 1.6 MTPA DRI / BF - Conarc: 3.3 MTPA Corex - BOF: 1.6 MTPA JSW Steel BF - BOF: 9.

  10. Slide 10: Superior Pan India Presence

    Superior Pan India Presence  Strengthen market reach in Western and Pan India  Leverage each other’s marketing and distribution platforms  Innovative distribution platform - JSW Shoppe • 360 outlets spread across semi-urban and rural locations Manufacturing Locations Vijayanagar: 10MTPA Dolvi: 3.

  11. Slide 11: Single Location Risk Mitigation

    Single Location Risk Mitigation JSW Steel JSW Ispat Steel making facilities Vijaynagar (landlocked) Dolvi (shore based) Iron ore sourcing Local/domestic Imports/domestic Potential to expand by 6 MTPA Potential to expand by 4 Brownfield Expansion through rationalization of MTPA through rationalizatio

  12. Slide 12: Transaction Structure

    Transaction Structure Appointed Date  July 1, 2012  Exchange Ratio of 1 share of JSW Steel for every 72 shares of JSW Ispat  Shares of JSW Ispat held by JSW Steel to be cancelled Terms  For every 1 cumulative redeemable preference share of JSW Ispat, the holder shall be entitled to receive 1 cum

  13. Slide 13: Scheme of Amalgamation and Arrangement

    Scheme of Amalgamation and Arrangement Pre-Merger Post-Merger Mittals Public Promoters Promoters JFE Public 61.95% 38.05% 35.12% 14.92% 49.96% 19.62% 33.63% 46.75% JSW Steel JSW Ispat JSW Steel Vijaynagar Salem Dolvi Kalmeshwar Dolvi Vijaynagar Salem Vasind Tarapur 100% WOS1 Vasind Tarapur Kalmeshwa

  14. Slide 14: Proforma Financial Information

    Proforma Financial Information (All figures in ` crores, unless stated otherwise) JSW Steel JSW Ispat Pro Forma (LTM June 2012) (FY ending June 2012) Net Turnover 36,593 10,724 43,940 EBITDA 6,518 1,176 7,713 PAT 707 (264) 960 Net Debt(1) 18,389 6,776 25,164 Outstanding Shares (mn) 223.12 2,517 241.

  15. Slide 15: Transaction Timetable

    Transaction Timetable Event Expected date(1) Approval by Boards of both companies and announcement September 01, 2012 BSE and NSE approval sought September 2012 BSE and NSE approval September 2012 Competition Commission approval sought September 2012 Application to Jurisdictional High Court October

  16. Slide 16: Merger Process Advisors

    Merger Process Advisors Independent  KPMG India Private Limited for JSW Steel Valuation  Price Waterhouse & Co. for JSW Ispat  Enam Securities Private Limited for JSW Steel Fairness Opinion  Citigroup Global Markets India Private Limited for JSW Ispat Legal Advisor  Amarchand & Mangaldas & Sure

  17. Slide 17: Thank you

    Thank you 17

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