Jindal Saw Limited · NSE:JINDALSAW
Jindal Saw — Investor Presentation (April 2006)
28 slides from Jindal Saw's investor presentation, April 2006
Slide 1: Jindal Saw Limited Corporate Presentation
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates JINDAL SAW LIMITED Corporate Presentation April 2006 1
Slide 2: Forward Looking Statements
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Forward Looking Statements This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other sta
Slide 3: Highlights
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Highlights • Largest pipe manufacturing company in India • Multi locational, multi product, low cost producer of pipes • Diversified product range mitigates business risks • Diversified across user segments (energy transpo
Slide 4: Highlights…(contd.)
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Highlights…(contd.) • Strong demand expected for pipeline infrastructure • Expansion of refineries and discovery of natural gas fields • Cost dynamics favour pipelines as means of transport • Water and sewerage projects to
Slide 5: Track Record
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Track Record Revenue EBITDA 30,000 3,000 2,815 23,928 % 25,000 2,500 3 5.1 3% R 20,000 47. 2,000 CA G GR 1,609 15,000 CA 1,500 1,380 11,293 1,054 1,024 10,000 8,070 1,000 6,058 581 4,037 5,000 3,133 500 - - 2000 2001 2002
Slide 6: Past Financials
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Past Financials In Rs. Million (except for ratios) Dec05 Year ended Jun-00 Jun-01 Sep-02* Sep-03 Sep-04 Sep-05 CAGR (3 mths) Gross Revenue 3,133 4,037 6,058 8,070 11,293 23,928 47.3% 8,617 EBITDA 581 1,024 1,054 1,609 1,38
Slide 7: Industry Overview
JINDAL SAW LTD. Industry Overview
Slide 8: Industry Segmentation and Key Industry Players
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Industry Segmentation and Key Industry Players Longitudinal Saw Spiral/Helical Saw Seamless Ductile/Cast Iron\ Electric Resistance Pipes (LSAW) Pipes (HSAW) (DI-CI) Welded (ERW) Application Oil & Gas Oil & Gas Transportati
Slide 9: Pipes industry…expected to gain pace
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Pipes industry…expected to gain pace Customer Few players Cost determinant Limited import Demand profile Stiff entry Steel flat prices for threat Huge Large oil & gas barriers due to saw pipes, billet High landed cost inte
Slide 10: Growth Impetus: Oil & Gas
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Growth Impetus: Oil & Gas Global Oil Demand Oil demand will infuse demand for pipelines 86 Oil prices near all time high: effect projected to carry 85 over into 2006 84 Demand is expected to be robust due to Non-OECD 8
Slide 11: Migration from other modes of transportation
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Migration from other modes of transportation Pipeline penetration is low in India Key advantages over other modes 1 More More Stable Stable 2 Safety Safety India US Global 25% 59% 75% 3 Protection Protection Against Agains
Slide 12: Planned projects and Government initiatives
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Planned projects and Government initiatives Demand Drivers Existing & Proposed Oil Pipelines Existing & Proposed Gas Pipelines International US replacement market Cross country and infrastructure projects Domestic Hi
Slide 13: Key industry trends: Water & Sewerage
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Water & Sewerage: Undergoing structural changes Water Demand on a rise… 1200 CAGR 5% 1100 Higher Billion cubic meters 1000 budgetary Development 800 allocation projects by 800 towards World Bank water & 600 and ADB sewage
Slide 14: The Jindal Saw - Profile
JINDAL SAW LTD. The Jindal Saw -Profile
Slide 15: Jindal Saw Ltd
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Jindal Saw Ltd • Jindal Saw is India’s largest pipe and anti corrosion coatings company • Largest manufacturer and exporter of line pipe in Asia after Japan • Manufactured over 10,000 kms of line pipes • Primary product ca
Slide 16: Solid and Improving Credit Profile
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Solid and Improving Credit Profile • The company has a market capitalization of over Rs.[20,000 million] as of 25 April 2006 • The company is listed on BSE, NSE and Luxembourg Stock Exchange • Jindal Saw has the highest sh
Slide 17: Vision and Core Values
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Vision and Core Values • The most preferred and reliable provider of value in all our businesses • Positioning …Total Pipe Solutions Company • Wide range of pipes and tubes products of different grades and dimensions, meet
Slide 18: Corporate Structure & Shareholding
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Corporate Structure & Shareholding Jindal Saw Limited • Jindal Saw has two wholly owned subsidiaries, Hexa Securities & Finance Company Limited and Jindal Enterprises, 100% 100% 100% 73% LLC USA • Jindal Jindal Hexa Hexa S
Slide 19: Revenue Composition
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Revenue Composition Revenue: Product Distribution Revenue: Geographical Distribution Seamless International 3% 75% SAW 95% Others 2% Domestic 25% FY04 FY04 FY04 FY04 Seamless US Ops International 7% 39% 66% DI Others 9% 1%
Slide 20: Manufacturing Units & Product Range
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Manufacturing Units & Product Range WIDE RANGE OF PRODUCTS SAW Pipes Seamless Tubes DI-CI Pipes (LSAW & HSAW) Kosi-Kalan, UP 250,000 TPA Nashik, Maharashtra 100,000 TPA Mundra (IPU), Gujarat 350,000 TPA 200,000 TPA MULTI-L
Slide 21: USP of Jindal Saw
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates USP of Jindal Saw Segment USP Large Dia SAW Pipes • Technological and market leadership position • Value added capabilities like coating facilities, induction bends, etc. • Multi-location advantage with proximity of Gujara
Slide 22: World Class Quality Products and Facilities
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates World Class Quality Products and Facilities Certifications World Class Facilities & Competitive Operations Two facilities located close to all weather world class commercial port in India Multi-locational facilities si
Slide 23: Marketing & Customer Profile
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Marketing & Customer Profile Overview CHANDIGARH Diverse set of end user industries NEWDELHI Pricing Drivers: raw material costs, quality requirements, geographical and JAIPUR LUCKNOW geopolitical location and delivery
Slide 24: Corporate Strategy
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Corporate Strategy Ascend 5 Ascend 4 Consolidation Ascend 3 1. DI – CI & Build-up operations to market 2. Expand leadership capacity position in Ascend 2 1. Seamless of SAW all segments Tube Pipes production Commenc 2. JV
Slide 25: US Branch Office: Structure of Transactions
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates US Branch Office: Structure of Transactions Overview Commenced its US Branch Office operations in October, 2003 Primarily a marketing arm in the US Toll conversion arrangements with US manufacturing facilities for St
Slide 26: Competitive Advantage of Jindal's US Facilities
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Competitive Advantage of Jindal’s US Facilities Pipe Mill (“SPU”) Plate Mill (“JUSCO”) • Key competitive advantage is • Customized sizes captive, “next door” plate supply • Limited competition for wide, normalized and • Pr
Slide 27: Growth Oriented Future Strategy
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates Growth Oriented Future Strategy Consolidation of SAW market share Continue to focus on International Markets • Elaborate product range and value added • Anticipated growth in the global energy services industry • Recently
Slide 28: JSL – Highlights
Total Pipe Solutions • LSAW • HSAW • Seamless Tubes • DI Pipes • Steel Plates JSL – HIGHLIGHTS 9 Industry poised for strong growth across segments and geographies JSL: Established track record and necessary accreditations Well positioned to exploit growing opportunities 9 One of the largest pi