JINDAL ST AINL E SS L IMIT E D
Corpora te Pre se nta tion – Ma y 2018
JINDAL ST AINL E SS L IMIT E D Disc laime r 2 T his pre se - - PowerPoint PPT Presentation
Corpora te Pre se nta tion Ma y 2018 JINDAL ST AINL E SS L IMIT E D Disc laime r 2 T his pre se nta tio n a nd the a c c o mp a nying slid e s (the Pre se nta tio n), whic h ha s b e e n pre pa re d b y Jind a l Sta inle ss L
Corpora te Pre se nta tion – Ma y 2018
2
T his pre se nta tio n a nd the a c c o mp a nying slid e s (the “Pre se nta tio n”), whic h ha s b e e n pre pa re d b y Jind a l Sta inle ss L imite d (the "Co mpa ny"), ha s b e e n pre p a re d pure ly fo r info rma tio n purp o se s o nly a nd is no t, a nd is no t inte nd e d to b e , a n o ffe r, o r so lic ita tio n o f o ffe r, o r invita tio n o r re c o mme nd a tio n o r a dvise to b uy o r se ll o r d e a l with a ny se c uritie s o f the Co mp a ny, a nd sha ll no t c o nstitute a n o ffe r, so lic ita tio n o r invita tio n o r re c o mme nd a tio n o r a dvise to b uy o r se ll o r d e a l with a ny se c uritie s o f the Co mpa ny in a ny jurisdic tio n in whic h suc h o ffe r, so lic ita tio n o r invita tio n o r re c o mme nda tio n o r a dvise is unla wful o r in c o ntra ve ntio n o f a pplic a b le la ws. No pa rt, o r a ll, o f this Pre se nta tio n sha ll b e use d o r fo rm the b a sis o f, o r b e re lie d o n o r re fe rre d to in c o nne c tio n with, a ny c o ntra c t o r inve stme nt d e c isio n in re la tio n to a ny se c uritie s o f the Co mpa ny. T his Pre se nta tio n is stric tly info rma tive a nd re la ting to the fina nc ia l c o nditio ns, inte rna l func tio ning , d a y to da y o p e ra tio ns, future e ve nts a nd pro je c tio ns e tc . o f the Co mpa ny a nd this pre se nta tio n sha ll no t b e use d o r re lie d upo n o r re fe rre d to in who le o r in p a rt, fo r a ny purp o se wha tso e ve r. T he info rma tio n in this Pre se nta tio n is b e ing pro vide d b y the Co mpa ny a nd is sub je c t to c ha ng e witho ut a ny no tic e o r lia b ility. T his Pre se nta tio n ha s b e e n pre p a re d b y the Co mp a ny b a se d o n info rma tio n a nd da ta whic h the Co mpa ny c o nsid e rs re lia b le , b ut the Co mp a ny ma ke s no re pre se nta tio n o r wa rra nty, e xpre ss o r implie d , wha tso e ve r, a nd no re lia nc e sha ll b e pla c e d o n, the truth, a c c ura c y, c o mple te ne ss, ve ra c ity, fa irne ss, inte g rity, suffic ie nc y a nd re a so na b le ne ss o f the c o nte nts o f this Pre se nta tio n. T his Pre se nta tio n ma y no t b e a ll inc lusive a nd e xha ustive a nd ma y no t c o nta in a ll o f the info rma tio n tha t yo u ma y c o nsid e r ma te ria l. Any lia b ility in re sp e c t o f the c o nte nts o f, o r a ny o missio n fro m, this Pre se nta tio n is e xpre ssly e xc lud e d . T his Pre se nta tio n c o nta ins sta te me nts a b o ut future e ve nts a nd e xp e c ta tio ns tha t a re fo rwa rd-lo o king sta te me nts. T he se sta te me nts typic a lly c o nta in wo rd s suc h a s "e xp e c ts" a nd "a ntic ipa te s" a nd wo rds o f simila r impo rt. Any sta te me nt in this Pre se nta tio n tha t is no t a sta te me nt o f histo ric a l fa c t is a fo rwa rd-lo o king sta te me nt tha t invo lve s kno wn a nd unkno wn risks, unc e rta intie s, c o nting e nc ie s a nd o the r fa c to rs whic h ma y c a use o ur a c tua l re sults, p e rfo rma nc e o r a c hie ve me nts to b e ma te ria lly diffe re nt fro m a ny future re sults, p e rfo rma nc e o r a c hie ve me nts e xpre sse d o r implie d b y suc h fo rwa rd-lo o king sta te me nts. No ne o f the future pro je c tio ns, e xp e c ta tio ns, e stima te s o r pro sp e c ts in this Pre se nta tio n sho uld b e ta ke n a s fo re c a sts o r pro mise s no r sho uld the y b e ta ke n a s implying a ny indic a tio n, a ssura nc e o r g ua ra nte e tha t the a ssump tio ns o n whic h suc h future pro je c tio ns, e xp e c ta tio ns, e stima te s o r pro sp e c ts ha ve b e e n pre p a re d a re c o rre c t o r e xha ustive o r, in the c a se o f the a ssump tio ns, fully sta te d in the Pre se nta tio n. T he Co mp a ny a ssume s no o b lig a tio ns o r re sp o nsib ility to up da te the fo rwa rd-lo o king sta te me nts c o nta ine d he re in to re fle c t a c tua l re sults, c ha ng e s in a ssump tio ns o r c ha ng e s in fa c to rs a ffe c ting the se sta te me nts. Yo u unc o nditio na lly a nd irre vo c a b le a c kno wle dg e a nd und e rta ke tha t yo u will b e so le ly re sp o nsib le fo r yo ur o wn a sse ssme nt o f the ma rke t, the ma rke t po sitio n, the b usine ss a nd fina nc ia l c o nditio n o f the Co mp a ny a nd tha t yo u will c o nduc t yo ur o wn a na lysis a nd b e so le ly re sp o nsib le fo r fo rming yo ur o wn vie w o f the p o te ntia l future p e rfo rma nc e o f the b usine ss o f the Co mpa ny. All the risks, lia b ilitie s o r c o nse q ue nc e s a rising
b o rne b y yo u. T his Pre se nta tio n sp e a ks a s o f the d a te me ntio ne d he re in. Ne ithe r the d e live ry o f this Pre se nta tio n no r a ny furthe r disc ussio ns o f the Co mpa ny with a ny
3
1
Compa ny Ove rvie w
2
Sta inle ss Ste e l Se c tor Dyna mic s
3
Ke y Busine ss Hig hlig hts
4
F ina nc ia ls
5
Conc lusion Anne xure
6
4
5
Sta inle ss Ste e l pla ye r in I ndia
De c a de s o f Gro up E xc e lle nc e
Do me stic Ma rke t Sha re E xpo rts to c o untrie s
Ac re T
a nd Are a (I nfra a nd o the r fa c ilitie s in-pla c e fo r b ro wnfie ld e xpa nsio n)
Jinda l Sta inle ss – Pione e rs of the Sta inle ss Ste e l Industry in India
No te : **Standalo ne financ ials
Pe r Annum Sta inle ss Ste e l Ca pa c ity – with sc a la b le infra struc ture in -pla c e
F Y18 Re ve nue s (Ne t)** F Y18 E BI T DA**
6
L a rg e st sta inle ss ste e l ma nufa c ture r in I ndia Ope ra te s a n inte g ra te d sta inle ss ste e l pla nt a t Ja jpur, Odisha
–
‘ Sta te -o f-the -Art’ ma c hine ry a nd e ng ine e ring fro m the b e st o f E uro pe a n supplie rs, c a pa b le
pro duc ing g lo b a lly c o mpe titive sta inle ss ste e l pro duc ts We ll e sta b lishe d distrib utio n ne two rk with se rvic e c e nte r a c c e ss in b o th Do me stic a nd o ve rse a s ma rke t to o ptimize c usto me r se rvic e a nd de live rie s
F ully inte gr ate d F ac ilitie s Unit Capac ity E quipme nt Supplie r s
F e rro Allo ys MMT PA 250,000 SMS Sie ma g , Ge rma ny Ca ptive Po we r Pla nt MW 264 BE HL , I ndia Ste e l Me lting Sho p (SMS) MMT PA 800,000 SMS Sie ma g , Ge rma ny Ho t Ro lle d Anne a le d Pic kle (HRAP) MMT PA 950,000 Andritz, Austria Co ld Ro lle d Anne a le d Pic kle (CRAP) MMT PA 450,000 Andritz, Austria
Pr
7
td.
L ife style L td Jinda l Sta inle ss L imite d (JSL )
Jinda l Sta inle ss Indone sia (PT JSI)
Jinda l Sta inle ss (Hisa r) L imite d (JSHL ) Re ve nue (Ne t) 107,850 E BIT DA 12,810 Ne tworth 23,520 Ma rke t Ca p* 37,667 Re ve nue (Ne t) 92,590 E BIT DA 11,390 Ne tworth 12,560 Ma rke t Ca p* 37,278 F Y18* (Rs. mn) F Y18* (Rs. mn)
No te s: *Standalo ne financ ials; **As o n 31st Marc h 2018
57.7% 42.3%
Sha re holding Pa tte rn** Pro mo te r Othe rs
66.5% 33.5%
Sha re holding Pa tte rn** Pro mo te r Othe rs
8
9
He a lthy g rowth in g loba l sta inle ss ste e l de ma nd…
33.6 35.9 38.5 41.7 41.5 45.8 2011 2012 2013 2014 2015 2016E
(mt)
… with the fa ste st g rowth of me ta l
1.8% 2.2% 2.4% 2.7% 3.9% 5.3% L e ad Car bon Ste e l Zinc Coppe r Aluminium Stainle ss Ste e l 25 Ye a rs CAGR
2.3 2.4 2.6 2.8 3.0 3.1 3.4 3.7 4.0 4.2 4.5 6.5 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2027E
Stainless steel demand (mt)
Total Long
India c ontinue s to be the se c ond la rg e st c onsume r with c onsiste nt g rowth ove r the ye a rs… … g ive n low pe r c a pita c onsumption (in kg )
1.90 5.30 6.40 9.00 14.10 14.80 26.40 31.80 India T ur ke y USA China Japan Ge r many S Kor e a T aiwan K g
Global Ave r age : 5.2
So urc e : CRI SI L , Wo rld Bank, I SSF
10
57% 7% 17% 2% 1% 11% 6% 2015 38% 12% 25% 3% 2% 13% 7% 2023E So urc e : I SSF (wo rldstainle ss.o rg )
Ove r the past 2 de c ade s, stainle ss ste e l c onsumption in India has move d away fr
imar y usage in c ookwar e / dur able to ne w value adde d c ate gor ie s of ABC, ARTand pr
ie s
80% 20% 1998
11
Sta inle ss Ste e l - T he “Gre e n wo nde r Me ta l”
Stainle ss Ste e l
L
Mainte nanc e Re c yc lability Dur ability L
ife Cyc le Cost Cor r
Re sistanc e F
mability Ae sthe tic s We ldability
Adde d to e nhanc e the str uc tur e and ac hie ve de sir able pr
tie s of c or r
r e sistanc e , har dne ss, str e ngth, mac hinabilit y, e tc .
Chro mium (Cr) Nic ke l (Ni) Nitro g e n (N) Mo lyb de num I ro n (F e )
12
Applic ations
Jindal Stainle ss c ate rs to a wide rang e o f pro duc ts…
13
De c ora tive a nd c olor c oa te d Sta inle ss Ste e l Stre e t furniture E sc a la tors, e le va tors Cla dding s Ra iling s Ga te s SS roofing she e ts Ra ilwa y sta tion upg ra da tion De c ora tive Pa ne ls Comme rc ia l Comple xe s Sc ulpture s & de sig ne r ite ms Home furniture
14
Bus bodie s E xha ust syste ms, a uto c ha ssis, trims, suspe nsion pa rts, fue l ta nks, c a ta lytic c onve rtors Ra ilwa y wa g ons a nd c oa c he s Me tro c oa c he s
15
Nuc le a r g ra de SS for fue l c onta inme nt a nd wa ste ha ndling Supe r c ritic a l boile rs in powe r pla nts Wa te r tre a tme nt a nd drinking wa te r supply De sa lina tion a pplic a tions Che mic a ls, pe tro- c he mic a l & fe rtilize r pla nts
16
Wa shing Ma c hine Mic rowa ve Re frig e ra tor Ute nsils Compone nts the re of
I nc re a sing shift to wa rds SS in ma king Ra ilwa y wa g o ns a nd c o a c he s Ne w T re nds in Auto se c to r like SS F ue l T a nks, BS-VI c o mplia nt e xha ust syste ms, SS Bus Bo dy, e tc . driving SS de ma nd fro m the industry Othe r a mb itio us pro je c ts like ‘ Swa c hh Bha ra t Ab hiya a n’ , ‘ Bha ra tma la Pa riyo ja na ’ , ‘ Ujjwa la sc he me ’ , e tc . to pro vide impe tus to SS g ro wth dire c tly De ma nd fro m the ABC se g me nt is e xc e pte d to g ro w a t 14-15% CAGR o ve r the ne xt 5 ye a rs Ma jo r use r se g me nt: Uptic k in de ma nd fro m K itc he nwa re a nd Co nsume r Dura b le s is e xpe c te d
17
Gr e ate r shift towar ds or ganize d se c tor and br inging unor ganize d se gme nt into the mainstr e am
GST
E nc our aging dome stic ste e l pr
c r e ating a le ve l playing fie ld
CVD & Anti- Dumping duty
T
imme nse ly fr
Pr
E ngine e r ing se gme nt
Ma ke in India
Mandator y Bur e au
ds (BIS) c e r tific ation to e le vate Indian SS standar ds
Bure a u of India n Sta nda r ds (BIS) c e rtific a tion
Automobile Railway T r anspor t (ART ) Othe r dr ive r s Consume r Goods Ar c hite c tur e Building Constr uc tion (ABC) Pr
ie s
F
18
Indian Railways to intr
Ste e l body c oac he s and wagons Suc c e ssfully de ve lope d Stainle ss Ste e l fue l tanks for c omme r c ial ve hic le s SS e me r ging as a pe r fe c t me tal for BS- VI c ompliant e xhaust syste m
I nno va tive so lutio ns driving usa g e in ne we r a pplic a tio ns
19
Hig h qua lity infra struc ture a nd fa c ilitie s in pla c e – 0.8 million tonne c a pa c ity with sc a la ble infra struc ture
20
L
Co ld Ro lle d Anne a ling Pic kling line
450,000T
PA
Mill Pla te Anne a ling & Pic kling
100,000T
PA
F e rro- Alloys
250,000T
PA
Ca ptive Po we r Pla nt (sc a la b le upto 500MW
264 MW
Ho t Ro lle d Anne a ling Pic kling line
950,000T
PA
T
a nd Are a
~800 ACRE
I mpro ve d b a la nc e she e t po sitio n
Ra ilwa y siding s within the pla nt le d to multifo ld b e ne fits
–
L
de pe nde nc e o n c a rte lize d lo c a l tra nspo rte rs
–
I mpro ve d WC c yc le b y re duc ing le a d time fo r RM & F G mo ve me nt E xpa nde d re so urc e s
Chro me
–
Ra tio na l pric ing me c ha nism fro m OMC
–
Ca ptive mine s I nc re a se d usa g e
liq uid F e rro Chro me a nd p a rtia l sub stitutio n o f e xpe nsive pro pa ne with c o ke o ve n g a s le d to sig nific a nt sa ving s in
Re c o ve r ke y me ta ls like Nic ke l a nd Chro mium fro m the wa ste pro duc e d in the ma nufa c turing pro c e ss Asse t Mo ne tiza tio n Pla n a ssiste d in unlo c king va lue
–
Be tte r de b t a llo c a tio n a nd e q uity infusio n le d to lo we r inte re st b urd e n a nd se rvic e a b ility E xpa nde d distrib utio n ne two rk thro ug h se rvic e c e nte rs De live re d Just I n T ime (JI T ) se rvic e s fo r c lie nt stic kine ss & stre ng the ning re la tio nship
–
Cle a re dg e o ve rimpo rts I nc re a se in utiliza tio n le ve ls e na b le d the Co mpa ny to drive
Cre a te d multiple de ma nd drive rs b y de ve lo ping the SS e c o syste m in the re g io n
21
L
Cre a te d a c usto me r-
Dive rsific a tio n a nd re lia b le so urc ing o f Ra w Ma te ria ls Optima l utiliza tio n o f a sse ts I nno va tio n-le d
22 JSL and Assoc iate Sale s Offic e s Manufac tur ing F ac ility Bangalor e Pune Mumbai Vadodar a Ahme dabad Jodhpur De lhi Gur gaon Chandigar h Che nnai Kothavalasa Visakhapatnam Jajpur Kolkata Hyde r abad
Co rpo ra te Offic e
Odisha
Jajpur Bhubane swar Dhamr a Por t Par adip Por t
Stra te g ic a lly lo c a te d ma nufa c turing fa c ility in Ja jpur, Odisha
–
Clo se pro ximity to po rts a nd ke y ra w-ma te ria ls – lo w le a d time fo r ra w- ma te ria ls & finishe d g o o ds mo ve me nt
23 Russia China South Kor e a Vie tnam T hailand Malaysia Indone sia Ge r many Poland T ur ke y UAE USA Be lgium Spain Br azil Italy JSL and Assoc iate Sale s Offic e s JSL and Assoc iate Se r vic e Ce nte r Manufac tur ing F ac ility
24
Str
tise
Robust Dome stic and Global distr ibution ne twor k
Huge ope r ating le ve r age
c a pe x
Wide r ange of pr
ation
nc re a sing pre miumiza tio n tre nd a nd de ma nd shift to wa rds ABC & ART se g me nts
Str uc tur al gr
25
26
604 723 797 534 641 779 75% 90% 100%
F Y16 F Y17 F Y18 T housands
SS Produc tion Volume (MT ) SS Sa le s Volume (MT ) Utilisa tion
65,280 83,110 107,850
F Y16 F Y17 F Y18
Re ve nue (Rs. mn)
584 3,180
1% 3%
F Y16 F Y17 F Y18
PAT (Rs. mn) PAT Mar gin (% )
5,210 11,070 12,810 8% 13% 12%
F Y16 F Y17 F Y18
E BIT DA (Rs. mn) Mar gins (% )
CAGR: 28.5% CAGR: 56.8%
27
Suc c e ssful imple me ntation of Asse t Mone tization Plan (AMP) he lpe d substantially r e duc e de bt Be tte r alloc ation of de bt post AMP e nsur e d sustainability and c onside r able c omfor t Uptic k in pr
the r dr ive de le ve r aging and impr
e tur n r atios going for war d 1) De b t inc lude s sho rt-te rm & lo ng te rm de b t. 2) ROE (%) is c alc ulate d as PAT / Avg . Ne two rth No te : Standalo ne F inanc ials
19.3 5.1 3.7
F Y16 F Y17 F Y18
De bt/ E BIT DA
100,369 56,281 47,288
6.1 3.2 2.0
F Y16 F Y17 F Y18
De bt (Rs. mn) De bt/ E quity Ratio
3.5% 15.5%
F Y16 F Y17 F Y18
ROE (% )
100 86 75 52 38 28 F Y16 F Y17 F Y18
Wor king Capital days
De b to rs Da ys Inve nto ry Da ys
151 124 103
28
29
L e a de rship po sitio n in the fa st g ro wing Va lue -Adde d Sta inle ss Ste e l se c to r – c le a r pro xy to the se c to r F a st de le ve ra g ing to sig nific a ntly stre ng the n b a la nc e she e t Wide spre a d distrib utio n ne two rk a nd e sta b lishe d supply c ha in I nte g ra te d o pe ra tio ns with sta te -o f-a rt fa c ilitie s Shifting fro m turna ro und to g ro wth mo de Hug e o pe ra ting le ve ra g e - lo w inc re me nta l c a pe x to drive future g ro wth
30
Road Shows Home Smart Home Campaign Health first SS Doors SS Water Tank SS Modular Kitchen
Inve sting in var ious Br anding & mar ke ting initiative s to e nhanc e ove r all mar ke t pote ntial by:
–
Cre a ting a wa re ne ss o f hyg ie ne a nd he a lth b e ne fits o f SS
–
I nc re a se usa g e o f SS in Ho me a nd Pub lic Spa c e s
Brand JSL – T
Safe Storage Other Campaigns & Exhibitions
31
31
. Jinda l Sta inle ss Indone sia
PA CR c a pa c ity
e y pro duc e r o f Sta inle ss ste e l in So uth E a st Asia n ma rke t
Ibe r Jinda l Spa in
c usto me rs in Spa in
32
Global Outr e ac h
33
Jindal Stainle ss L td
Jinda l Sta inle ss L td (JSL ) Jinda l Sta inle ss Hisa r L td (JSHL ) Jinda l Co ke L td (JCL ) Jinda l Unite d Ste e l L td (JUSL )
Unliste d E ntitie s L iste d E ntitie s
PA
PA
PA
e r r
PA
Plant – 264 MW
ip Mill – 16,00,000 MT PA
4,30,000 MT PA
ate d SS F ac ility – 8,00,000 MT PA
e r r
– 40,000 MT PA
26% 26%
*Ho t Ro lle d Anne a ling Pic kling **Co ld Ro lle d Anne a ling Pic kling
34
Pro mo te rs 66.52% Co rpo ra te Bo die s 3.34% Re ta il & Othe rs 30.14% Othe r 33.48%
F loa ting Stoc k (% )
Ke y Ma rke t Sta tistic s As on Ma rc h 31, 2018 BSE / NSE T ic ke r
JSL / 532508
Industry
Sta inle ss Ste e l
CMP (Rs.)
78.6
Ma rke t Ca p (Rs. mn)
37,667
Numbe r of outsta nding sha re s (mn)
479.2
F a c e Va lue (Rs.)
2.00
52- we e k Hig h / L
126.05/ 69.35
About Us:
Jinda l Sta inle ss L td . (JSL ) is a mo ng st the le a ding sta inle ss ste e l ma nufa c turing c o mpa nie s in the wo rld a nd I ndia 's la rg e st sta inle ss ste e l ma nufa c ture r. T he Co mpa ny o pe ra te s a n inte g ra te d sta inle ss ste e l pla nt a t Ja jpur, Odisha . T he c o mple x ha s a to ta l sta inle ss ste e l c a pa c ity o f 0.8 millio n to nne s pe r a nnum. JSL ha s the ‘ Sta te -o f-the -Art’ ma c hine ry a nd e ng ine e ring fro m the b e st
E uro pe a n supplie rs, c a pa b le
pro duc ing g lo b a lly c o mpe titive sta inle ss ste e l pro duc ts. T he Co mpa ny ha s a we ll- e sta b lishe d distrib utio n ne two rk with se rvic e c e nte rs in b o th do me stic a nd a n o ve rse a s ma rke t to se rve its c usto me rs. A le a de r a nd a na me syno nymo us with ‘ E nte rprise ’ , ‘ E xc e lle nc e ’ a nd ‘ Suc c e ss’ , Co mpa ny’ s e tho s mirro rs mo st c ha ra c te ristic s simila r to the me ta l it pro d uc e s; a kin to sta inle ss ste e l JSL is inno va tive a nd ve rsa tile in its tho ug ht pro c e ss; stro ng a nd unre le nting in its
’ s g ro wth o ve r the la st 4 de c a de s ha s b e e n b a c ke d b y the e xc e lle nc e
its pe o ple , va lue drive n b usine ss
pra c tic e s in the sta inle ss ste e l industry a nd a c o mmitme nt fo r so c ia l re spo nsib ility.
Anura g Ma ntri / Shre ya Sha rma Jinda l Sta inle ss L td T e l: +91 11 26188345 E ma il: a nura g .ma ntri@ jinda lsta inle ss.c o m
shre ya .sha rma @ jinda lsta inle ss.c o m
Anoop Pooja ri / De vrishi Sing h Citig a te De we Rog e rson T e l: +91 22 6645 1211 / 1222 E ma il: a no o p@ c dr-india .c o m
de vrishi@ c dr-india .c o m
35
36