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 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 o ut o f o r c o nse q ue nt to the use o f o r re lia nc e o n o r re fe re nc e to this Pre se nta tio n a nd/ o r a c ting o n the b a sis o f the a na lysis/ vie ws fo rme d b y yo u, sha ll b e so le ly 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 o f the re c ipie nts sha ll, unde r a ny c irc umsta nc e s, c re a te a ny implic a tio n tha t the re ha s b e e n no c ha ng e in the a ffa irs o f the Co mpa ny sinc e tha t da te .
Conte nt 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 6 Anne xure
Company 4 Ove r vie w
Snapshot 5 Jinda l Sta inle ss – Pione e rs of the Sta inle ss Ste e l Industry in India #1 ~4 >25% 40+ Sta inle ss Ste e l pla ye r E xpo rts to c o untrie s De c a de s o f Gro up Do me stic Ma rke t in I ndia E xc e lle nc e Sha re ~800 0.8 Mn T ~` 108 bn ~` 13 bn onne s Ac re T o ta l L a nd Are a Pe r Annum Sta inle ss Ste e l F Y18 Re ve nue s (Ne t)** F Y18 E BI T DA** (I nfra a nd o the r Ca pa c ity – with sc a la b le fa c ilitie s in-pla c e fo r infra struc ture in -pla c e b ro wnfie ld e xpa nsio n) No te : **Standalo ne financ ials
Company Ove r vie w 6 L a rg e st sta inle ss ste e l ma nufa c ture r in I ndia Pr oduc t Baske t 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 o f 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
Jindal Stainle ss Gr oup 7 Jinda l Sta inle ss L imite d (JSL ) Jinda l Sta inle ss (Hisa r) L imite d (JSHL ) • • PT Jinda l Sta inle ss Indone sia (PT JSI) Jinda l Sta inle ss Ste e lwa ys L td. • • Ibe rjinda l Spa in JSL L ife style L td F Y18* (Rs. mn) F Y18* (Rs. mn) Re ve nue (Ne t) 107,850 Re ve nue (Ne t) 92,590 E BIT DA 12,810 E BIT DA 11,390 Ne tworth 23,520 Ne tworth 12,560 Ma rke t Ca p* 37,667 Ma rke t Ca p* 37,278 Sha re holding Pa tte rn** Sha re holding Pa tte rn** 66.5% 33.5% 57.7% 42.3% Pro mo te r Othe rs Pro mo te r Othe rs No te s: *Standalo ne financ ials; **As o n 31st Marc h 2018
Stainle ss Ste e l 8 Se c tor Dynamic s
F avour able se c tor dynamic s… 9 He a lthy g rowth in g loba l sta inle ss ste e l de ma nd… … with the fa ste st g rowth of me ta l Stainle ss Ste e l 5.3% 45.8 41.7 41.5 Aluminium 3.9% 25 Ye a rs CAGR 38.5 35.9 33.6 Coppe r 2.7% (mt) Zinc 2.4% Car bon Ste e l 2.2% L e ad 2011 2012 2013 2014 2015 2016E 1.8% India c ontinue s to be the se c ond la rg e st c onsume r … g ive n low pe r c a pita c onsumption (in kg ) with c onsiste nt g rowth ove r the ye a rs… Stainless steel demand T aiwan 31.80 6.5 S Kor e a 26.40 4.5 4.2 4.0 3.7 Ge r many 14.80 3.4 (mt) 3.1 3.0 2.8 2.6 2.4 2.3 Japan 14.10 g K China 9.00 USA 6.40 Global Ave r age : 5.2 T ur ke y 5.30 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2027E India 1.90 Total Long So urc e : CRI SI L , Wo rld Bank, I SSF
Consumption Patte r n dive r sifying ac r oss c ate gor ie s 10 1998 2015 2023E 6% 7% 20% 11% 13% 1% 2% 2% 38% 3% 17% 57% 25% 7% 80% 12% Ove r the past 2 de c ade s, stainle ss ste e l c onsumption in India has move d away fr om the most pr imar y usage in c ookwar e / dur able to ne w value adde d c ate gor ie s of ABC, ARTand pr oc e ss industr ie s So urc e : I SSF (wo rldstainle ss.o rg )
Stainle ss ‘Value - Adde d’ Ste e l 11 L ow Mainte nanc e Re c yc lability We ldability Chro mium (Cr) Adde d to e nhanc e Nic ke l (Ni) the str uc tur e and ac hie ve de sir able pr ope r tie s of Nitro g e n (N) Ae sthe tic s Dur ability c or r osion Stainle ss r e sistanc e , har dne ss, Ste e l str e ngth, mac hinabilit Mo lyb de num y, e tc . I ro n (F e ) L ow L ife F or mability Cyc le Cost Cor r osion Re sistanc e Sta inle ss Ste e l - T he “Gre e n wo nde r Me ta l”
Stainle ss Ste e l 12 Pr oduc t Applic ations 360 o Pr oduc t Applic ations Jindal Stainle ss c ate rs to a wide rang e o f pro duc ts…
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