Jindal Steel Limited · NSE:JINDALSTEL
Jindal Steel — Jindal Steel & Power — Q1 FY2023 Earnings Presentation
28 slides from Jindal Steel's earnings presentation, Jul 15, 2022
Slide 1: Exchange intimation letter under Regulation 30
July 15, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring, Plot No. C/1, G Block Rotunda Building, P J Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 corp.
Slide 2: Q1FY'23 Key Performance Highlights
Q1FY’23 Key Performance Highlights 15th Jul,2022
Slide 3: Disclaimer
DISCLAIMER This presentation may contain certain forward looking statements concerning Steel sector , Economy and JSPL’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such fo
Slide 4: Table of Content
Table of Content Page No Industry Update 4 Results Highlights 8 Company Details 14 Way Forward 20
Slide 5: Industry Update
Industry Update
Slide 6: Near term challenges but fundamentals remain strong in the long term
NEAR TERM CHALLENGES BUT FUNDAMENTALS REMAIN STRONG IN THE LONG TERM Despite near term 1. Chinese Steel exports breached 5MT in May-June 22 due to muted domestic demand challenges, see 2. China Crude steel production has declined 8.7% in the first five months of CY22 healthy Steel Demand 3. Chinese
Slide 7: Indian steel demand is forecasted to be robust in CY22-23
INDIAN STEEL DEMAND IS FORECASTED TO BE ROBUST IN CY22-23 India‘s GDP Growth is projected to post robust Indian Steel Consumption was up c.11% Y-o-Y during growth of 7.2% in FY23 1QFY23 due to benign base • At 9.2%, India’s GDP growth in FY 22 was the fastest in at least 17 years (Fig in Mill MT) St
Slide 8: Key pricing trends
KEY PRICING TRENDS Long steel prices (Primary Rebar) is trading at a modest HRC & Rebar Prices have declined sharply since April 2022 discount to flat (HRC) 85,000 HRC and Rebar prices (INR/t) 18,000 Domestic HRC less Rebar prices (INR/t) 80,000 16,000 75,000 14,000 12,000 70,000 59,400 10,000 65,00
Slide 9: Result Highlights
Result Highlights
Slide 10: JSPL Standalone Key Financials
JSPL STANDALONE KEY (INR Crores) FINANCIALS Q4 FY 22 Q1 FY 23 PARAMETER Q1 FY 23 Q1 FY 22 15,579 14,541 Gross Revenue* 14,541 11,473 13,831 12,849 Net Revenue 12,849 10,385 2,657 2,865 Adjusted EBITDA** 2,865 4,411 551 540 Depreciation + Amortization 540 556 295 258 Interest 258 444 2,009 2,534 PBT
Slide 11: JSPL Consolidated Key Financials
JSPL CONSOLIDATED KEY FINANCIALS (INR Crores) Q4 FY 22 Q1 FY 23 PARAMETER Q1 FY 23 Q1 FY 22 16,089 14,738 Gross Revenue* 14,738 11,698 14,339 13,045 Net Revenue 13,045 10,610 2,900 2,993 Adjusted EBITDA** 2,993 4,426 272 596 Depreciation + Amortization 596 602 373 364 Interest 364 561 2,428 2,503 PB
Slide 12: Operational Performance: Steel Production & Sales
OPERATIONAL PERFORMANCE Steel Production & Sales* 2.13 2.11 2.07 2.08 2.01 1.99 1.96 1.93 1.93 1.93 1.91 1.87 1.84 1.82 1.74 1.67 1.67 1.61 1.61 1.57 1.57 1.58 1.54 1.56 1.52 1.51 1.48 1.40 1.34 1.36 1.33 1.32 1.30 1.27 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4F
Slide 13: Summary of International Operations
SUMMARY OF INTERNATIONAL OPERATIONS MOZAMBIQUE 5 MTPA ROM coal mine in Mozambique’s coal-rich Moatize region Q1FY23 • Coking Coal Sales Vol. 197kt • EBITDA ~US$ 43 Mn SOUTH AFRICA AUSTRALIA JSPL’s Kiepersol Colliery produces Anthracite coal, sold domestically and WCL comprises of two coking
Slide 14: JSPL Consolidated Net Debt Bridge – 1QFY23
JSPL CONSOLIDATED NET DEBT BRIDGE – 1QFY231 (INR Crs) 9,000 8,800 8,600 8,400 1,110 8,200 8,000 8,876 7,800 53 93 7,600 7,400 7,727 7,200 7,000 Net Debt as on 31st Mar'22 Debt reduction (Including Fx Impact Movement in Cash & Cash Net Debt as on 30th Jun '22 prepayments) Equivalents Note: (1) Based
Slide 15: Company Details
Company Details
Slide 16: Business Segments
BUSINESS SEGMENTS STEEL MINES & MINERALS India: Global: Iron Ore Coking Coal Anthracite 9.6 MTPA Steel Kasia, Odisha Mozambique South Africa 9 MTPA Pellet Plant Tensa, Odisha Australia 15
Slide 17: Steel Capacities Across Life Cycle
STEEL CAPACITIES ACROSS LIFE CYCLE IRON MAKING LIQUID STEEL FINISHED STEEL (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) WRM 0.60 MTPA (Wire Rod Mill) Capacity DRI 3.12 MTPA in deail (Direct Reduced Iron) Rail Mill 0.75 MTPA SMS 9.60 MTPA (Steel Melting Shop) BSM 0.70 MTPA (Beam & Structure Mill) BF 7.30 MTP
Slide 18: India Capacities
INDIA CAPACITIES Raigarh Angul Barbil Patratu (Chhattisgarh) (Odisha) (Jharkhand) Mining (Odisha) C G P 225,000 B F 3.05 M T PA Nm 3/Hr D R I 1.32 M T PA B F 4.25 M T PA W R M 0.60 Tensa SM S 3.6MTPA D R I 1.8 M T PA M T PA 3.11 M T PA Plate Mill 1.00 Pellet Plant SM S 6 M T PA M T PA 9 M T PA Rail
Slide 19: Key Customers & Adding...
KEY CUSTOMERS & ADDING... roar) = ReuAnce SMMA wears AE parrudte nN ca tee Rusrer Resa ats Nee! = os Indian LANCO g GL Group ~ @ “wD fan (4) - — = : varayprojects GD Puriuoya 7) SIMPLEX Indiabulls ie ee AMET = LODHA Giisminte Se ME ser by Prgereoa) Quensomo vedanta FT + CC geen Sayree essa’ ©. 4G A
Slide 20: Consolidated Structure
CONSOLIDATED STRUCTURE Jindal Steel & Power (JSP) Listed Operating Entity in India 100.0% Jindal Steel O d i s h a ( J S O L ) Angul Expansion 100.0% Jindal Steel & Power (Mauritius) (JSPML) Holding company for overseas business 100.0% 73.9% 97.5% Australia South Africa Mozambique Coking Coal Anthra
Slide 21: Way Forward
Way Forward
Slide 22: JSP: Strategic Growth Framework
JSP : STRATEGIC GROWTH FRAMEWORK HIGH RETURN STRONG ON CAPITAL BALANCE EMPLOYED SHEET Strong FCF Net Debt/EBITDA < Generation & faster 1.5x through the cycle payback STEEL FOCUS SUSTAINABLE Incremental Capex GROWTH to be spent on core MAKE IN Steel Business Sustainability of operations remains at IN
Slide 23: Phase II - Capacity Addition to Boost Volumes
PHASE II- CAPACITY ADDITION TO BOOST VOLUMES CRUDE STEEL CAPACITY (MTPA) CAPEX BREAKUP Raigarh Angul Phase I Angul Phase II Angul Phase II (3 15.9 MTPA EAF) Angul Phase II (3.3 12.9 MTPA BOF) 6.3 3.3 Margin 9.6 Expansion, 37% 8.6 INR 18,0001 Cr 6.0 6.0 6.0 Volume 5.0 Expansion, 63% 3.6 3.6 3.6 3.6 F
Slide 24: Phase II: Angul Crude Steel Capacity to Double
PHASE II: ANGUL CRUDE STEEL CAPACITY TO DOUBLE TO 12 MT BY MAR 2025 RAW MATERIALS SEMI-FINISHED HOT FINISHED RAW MATERIALS IRONMAKING STEELMAKING PREPARATION PRODUCTS ROLLING PRODUCTS Electric Arc Coal Gasification Direct Reduced Furnace (EAF) Plate Mill Plant(CGP) Iron(DRI) making Coal Plate D Slab
Slide 25: Angul Phase-II: Timeline
ANGUL PHASE-II : TIMELINE Expected FY22 FY23 FY24 FY25 Completion Angul Pellet Plant #1: 6MTPA 2QFY23 Margin HSM Phase #1: 3MTPA 4QFY23 Expansion : Angul Pellet Plant #2: 6MTPA 2QFY24 INR 6,600 Cr. Slurry Pipeline 2QFY24 Oxygen plant, Coke oven , RMHS 2QFY24 HSM Phase #2 Expand to 5.5 MTPA 2QFY24 Bl
Slide 26: Integrated Steel Plant, Angul; Pellet Plant, Barbil
ODISHA INTEGRATED STEEL PLANT, ANGUL PELLET PLANT, BARBIL 25
Slide 27: Chhattisgarh & Jharkhand
CHHATTISGARH & JHARKHAND INTEGRATED STEEL PLANT,RAIGARH STEEL FABRICATION PLANT, PUNJIPATRA HEAVY MACHINERY DIVISION, RAIPUR WRM & BRM, PATRATU ,JHARKHAND 26
Slide 28: Thank You!
THANK YOU! non STEEL & POWER
Jindal Steel & Power — Q1 FY2023 Earnings Presentation on 6ix