jindal steel and power ltd - aceanalyser meet/132286_20140806.pdfannual turnover of jspl us$ 3.3 bn+...

Copyright @ 2014 Jindal Steel & Power Limited 1

Investor Presentation August 2014

Jindal Steel and Power Ltd


Jindal Steel & Power Limited Face of Youthful Dynamism

Aerial View of Raigarh Plant


O P Jindal Group

Jindal Saw Mr. P.R. Jindal

JSL Limited Mr. Ratan Jindal

JSW Steel/JSW Energy Mr. Sajjan Jindal

Jindal Steel & Power (JSPL) Mr. Naveen Jindal


Ownership Structure - O P Jindal Group


Annual turnover of JSPL

US$ 3.3 bn+

Future investments committed across continents

US$ 30 bn

Steel making capacity Mining capacity

22.56 MTPA

Power capacity

4,532 MW

Pellet making capacity

9 MTPA 29 Countries

Ensuring pan-India presence, covering 400 districts for retail

business

People strengths

16000+

Lives impacted by JSPL’s social endeavours

9 Lakh+

Saplings planted

7.4 mn+

7.50 MTPA

Export presence

1,472 Dealers

JSPL at a Glance - Part of US$ 18 bn OP Jindal Group

Copyright @ 2014 Jindal Steel & Power Limited 5 Copyright @ 2014 Jindal Steel & Power Limited 5

Mr. Naveen Jindal – Chairman

• Ranked amongst the Asia’s 25 Hottest People in Business by the Fortune Asia magazine for turning a struggling steel company into one of Asia’s blue-chip giants

• India’s Best CEO by the BT-INSEAD-HBR Study of the top value creators for the period 1995 to 2011 by the Business Today

• Featured among the top ten of India Inc's Most Powerful CEOs 2011 by IMRB survey for Economic Times-Corporate Dossier

• Conferred with the Ernst and Young Entrepreneur of the Year Award 2010 in the field of Energy and Infrastructure

Mr. Ravi Uppal – Managing Director & Group CEO

• Over 37 years of experience in engineering and infrastructure

• Previously whole-time Director and President & CEO – L&T Group. Also held senior positions at ABB and Volvo

• Advanced MBA from Wharton, MBA from IIM Ahmedabad, and B.Tech. from IIT Delhi

Mr. Anand Goel – Chief Advisor

• Over 37 years of experience with the O.P. Jindal Group

• Master's Degree in Business Administration from BITS, Pilani

• Member of the National Steel & National Mining committees of FICCI and National Mining Committee of CII

Mr. K Raja Gopal – Director & Group CFO

• Over 32 years of experience out of which about 21 years has been with ABB

• Chartered Account from the Institute of Chartered Accountants of India

Group Executive Committee - JSPL

Copyright @ 2014 Jindal Steel & Power Limited 6 Copyright @ 2014 Jindal Steel & Power Limited 6

Mr. Rajesh Bhatia – CEO Global Ventures

• Over 21 years of experience in the field of Finance, Accounts, Taxation, Administration and Commercial

• Played an important role in JSPL's overseas acquisitions in Australia, Indonesia, South Africa, Mozambique, Madagascar, Mongolia & Oman, apart from arranging financing for greenfield expansion in Orissa and Jharkhand in India.

Mr. Subrat Ratho – MD, CTL & Head of Odisha operations

• Previously Managing Director of Maharashtra State Power Generation Company Ltd. and Mahaguj Collieries Ltd.

• Managing Director of the Maharashtra State Electricity Transmission Company Ltd. and MSEB Holding Company Ltd.

• Joined IAS in 1986

Mr. R S Sharma – Managing Director & CEO, JPL

• Over 40 years of experience in the power sector

• Previously he was the Chairman and Managing Director, NTPC Ltd.

• He has been honoured with several awards including honorary fellowship from International Project Management Association, fellowship of World Academy of Productivity Science



Mr. V K Mehta – ED Marketing

• Over 37 years of experience in marketing

• Previously, he was working with SAIL, Kolkata as its Executive Director, Marketing and was also on the Board of Directors of Mjunction and SAIL-SCI Shipping Co.

Mr. Jayant Kawale – Managing Director – Hydro & Renewables

• Over 29 years in administration in various functional fields both at State and Central Government levels

• Worked as Joint Secretary (Hydro) in Government of India

• Drafted the current Hydro Power Policy of 2008 and has served on the Boards of all hydro PSUs of Government of India

Mr. Rajeev Bhadauria – Director Group HR

• More than 29 years as a HR professional across Public and Private sectors

• Previously Regional HR head – NTPC and President HR – Reliance ADA Group

• Post Graduate in Industrial Relations from the Power Management Institute, NTPC and LLB from Allahabad University



Group Executive

Committee

Senior Management Committee

Core Management

Team

UniCo

For each Location

ManCo

For each Business

Business Segments

Global Ventures

Mines & Minerals

Power

Steel & Cement

Strategic Governance Structure Operational Governance Structure

Moving Towards Plural Leadership

Implementation of Strategic & Operational Governance Structure


31.03.11 31.03.12 31.03.13 31.03.14 30.06.14

Promoters 58.41% 58.91% 59.13% 60.41% 60.41%

Institutional Investors 29.54% 28.96% 27.45% 26.45% 27.15%

Public and other share holding

12.05% 12.13% 13.42% 13.14% 12.44%

Total 100.00% 100.00% 100.00% 100.00% 100.00%

Number of share holders 1,23,842 1,26,678 1,32,311 1,35,593 1,35,237

123842

126678

132311

135593 135237

115000

120000

125000

130000

135000

140000

31.03.11 31.03.12 31.03.13 31.03.14 30.06.14

Number of share holders

Number of share holders

Shareholding Pattern - JSPL


31.03.11 31.03.12 31.03.13 31.03.14 30.06.14

Foreign Inst’ Investors 23.44% 22.14% 20.76% 22.32% 22.38%

Insurance 4.06% 4.09% 3.23% 2.47% 3.17%

Mutual funds 2.00% 2.71% 3.41% 1.61% 1.49%

Others -financial institutions

0.04% 0.02% 0.05% 0.05% 0.11%

Total Inst’ share holding 29.54% 28.96% 27.45% 26.45% 27.15%

FII’s Continues to Keep Faith in JSPL

Institutional Shareholding - JSPL


Steel & Cement Power

Mines & Minerals

Business segments

Global Ventures

JSPL

Steel 7.50 MTPA

Mining 22.56 MTPA

Power 4532 MW

Business segments

Current Capacities – Domestic & Global

Business Segments


Capacity in deail

Raigarh

SMS 3 MTPA

BF 1.67 MTPA

DRI 1.32 MTPA

Plate Mill 1 MTPS

RUBM 0.75 MTPA

MLSM 0.60 MTPA

CPP 851 MW

Angul

SMS 2.5 MTPA

DRI 1.8 MTPA

CGP 225,000 Nm3/Hr

Plate Mill 1.5 MTPA

CPP 810 MW

Barbil

Pellet Plant

9 MTPA

Patratu

WRM 0.6 MTPA

Rebar Mill 1.0 MTPA

Oman

SMS 2.0 MTPA

HBI 1.5 MTPA

JPL

Tamnar 2800 MW

Mining

Iron Ore 3.11 MTPA

Coal Domestic

12.25 MTPA

Coal Overseas

7.20 MTPA

Operational Capacity at a Glance


Raigarh

3 MTPA Steel Plant

Thermal Coal 6MTPA: Gare IV / 1

Iron Ore: 3.11 MTPA Tensa Mine & Pellet from Barbil

Coking Coal: Import

Angul

2.5 MTPA Steel Plant

Thermal Coal: Either Utkal B1 / e-auction

Iron Ore: Pellet from Barbil

Coking Coal: Not Required

Barbil

9 MTPA Pellet Plant

Thermal Coal: NA

Iron Ore: External

Coking Coal: NA

Oman

2 MTPA Steel Plant

Natural Gas: MoU with Govt of Oman

Pellet: Local sources

Coking Coal: Not Required

Raw Material Sourcing - Steel


Tensa Orissa 3.11MT Raigarh Steel

Jeraldaburu Jharkand - Asanboni Steel

Gare IV / 1 Chhattisgarh 6.00 MT Raigarh DRI & Captive Power PlantGare IV / 2 & 3 (JPL) Chhattisgarh 6.25MT JPL Power

Utkal B 1 Orissa 5.5MT DRI at Angul & Captive Power PlantGare IV / 6 Chhattisgarh 4 MT Raigarh Steel & CPPJitpur Jharkand 2.5MT JSPL's CPP at GoddaUrtan North* M.P. 0.6 MT Raigarh Steel Amarkonda* Jharkhand - Power plant at Patratu and DumkaRamchandi (CTL)* Orissa - Coal to Liquid & CPP based on Middlings

For Existing Operations

For Future Expansion

For Existing Operations

For Future Expansion

Wollongong coal Limited, Australia

Domestic Coal

* Stay obtained from HC against De-allocation by MOC .

Overseas Coal

South Africa Under OperationMozambique Under Operation

Indonesia Under DevelopmentBotswana Under Development

Under Operation

Mine State

Annual extraction

(Approved capacity as

per mine plan)

End Use

Domestic Iron Ore

Overview of Mines


Economic Growth – Top of the Agenda (5.5% to 6% during FY14-15)

Focus on Inflation Control

Focus on Infrastructure & Manufacturing

De - Regulation of Economy

Divestment of Public Sector

Dilution of “Land Bill” for Infrastructure & Housing

Speedier “Environmental & Forest Clearances”

Reduction of Subsidies

Indian Economy – Dawn of a NEW ERA (14-15)

Likely new Policy trends (1/2)


Reduced size of Government

Enhanced participation and ownership of foreign companies

Simplification of Tax Regime & introduction of GST

Larger role and delegation for State Government

Increased E - Governance

Empowerment & accountability of Bureaucracy

Transparency in allocation of Mines & Minerals

Indian Economy – Dawn of a NEW ERA (14-15)

Likely new Policy trends (2/2)


IIP


General Manufacturing

Electricity Mining

IIP Sector wise

-0.60

0.10

-1.90 -0.50

3.40

4.70

-1.60 -0.70 -3.70 -1.20

2.60

4.80

7.50 6.50

11.50

5.40

11.90

6.30

0.40 0.70

1.40

-0.40

1.20

2.70


Index of 8 core industries grows at 7.3% in June, fastest since October last year

Electricity Sector: Latest estimates show growth at 15.7% in June, compared with 6.3% in May

Steel Sector: Growth of 4.2% in June as compared to 2% in May

Cement Sector: Grew at 13.6% in Jun against 8.7% in May

Economic Survey expects India's economy to expand by 5.4 - 5.9% this fiscal

Positive Indications


971

1343

1607

2003 2008 2013

Crude Steel Production

Rest of World

Asia67%

58% 46%

Fig: Mega

Tonne

186

336

515

175

247

302

151

195 225

88

126 132

30

43 58

2003 2008 2013

Per Capita Finished Steel Consumption (Kg)

China

Russia

World

Brazil

India

885

1221

1481

2003 2008 2013

Finished Steel Consumption

66% 58%

51%

Finished Steel Consumption

2003 - 13 CAGR

World 5.30%

Rest of the World (ex Asia) 1.50%

Asia 8.00%

China 11.3%

India 8.30%

Rest of Asia 1.50%

- Asia accounted for 90% of the average incremental consumption during the decade - CY 13: Asia accounted for more then 66% of Crude production & Steel consumption

Asia’s dominance in Global Steel Space


801

540

84

54.4 59

23 13 8

821

555

87

53.9 60

22 14 8

World Asia EU CIS North America South America Middle East Africa

MillionTonne

Jan - June '13 Jan - June '14

2.5%

2.9%

3.8% 1.7

% 9.3%

1.2%

1 %

2.6%

Production

Jan – June 2014 - Global Steel production


77

20 20

81

21 21

CY (12 Vs 13) Jan-March (13 Vs 14) April-June (13 Vs 14)

India

India: - Steel production (Jan- April’14) up by 1.6% (y-o-y) - Steel production (April- June’14) up by 1.1% (y-o-y)

5.0%

1.6% 1.1%

Production trend of Indian Steel Industry


April ‘14 – July ‘14: Price movement: Domestic Prices: - TMT & WR prices on

uptrend. International Prices: - ~ 9% decrease in TMT

(FOB China) - ~ 5% decrease in Wire

rod (FOB China)

440

460

480

500

520

540

560

30000

32000

34000

36000

38000

40000

42000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Last week Latest

Pri

ces

( R

s/M

T-B

asic

)

Price Movement : TMT & Wire Rod Domestic (Delhi-Rs/MT) Vs International ($/MT)

TMT Rebar-Delhi

Wire Rod-Delhi

TMT Rebar-FOB China

Wire Rod -FOB China

Price trend – Long products

Domestic

International


April ‘14 – July ‘14: Price movement: Domestic Prices: - 1-1.5 % decrease in

HRC - 1-2% decrease in

Plate International Prices: - ~1-2.5 % decrease in

HRC & Plate (FOB-China)

500

505

510

515

520

525

530

535

540

545

550

34000

35000

36000

37000

38000

39000

40000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Last week Latest

Ex W

/Y R

s/M

T

HRC & Plate Price Movement : Domestic (Delhi -Rs/MT) & International (FOB China - $/MT)

HR Coil-Delhi

HR Plate-Delhi

HR Coil-FOB China

HR Plate-FOB China

International

Domestic

Price trend – Flat product


In FY14 In FY 15

5 MTPA

2800 MW

~2x

~2.8x

2 MTPA add

Steel - India 3 MTPA

Power 1000 MW

Oman 0 MTPA

Pellet 4.5 MTPA 9 MTPA ~2x

Business Achievements…

In terms of Capacity addition ..another JSPL is added to JSPL


12,100 Cr. 3.5 MTPA Liquid Steel 2.35 MTPA Finished Steel 851 MW 5200 Investment Capacity Steel Power Workforce

JSPL at Raigarh


Flow Diagram of Process in Raigarh


18500 Cr. + 1.5 MTPA Steel 1.2 MTPA Finished Steel 810 MW 2723 Investment Capacity Capacity Power Workforce

JSPL at Angul


Product usage

Ship Building Line Pipes High End Structural

Boilers Wind Mills Engineering Pressure Vessels

Coal Gasification Gas Based DRI EAF

Plates Plate Mill Slab Caster

Link Link Link

Link Link Link

Flow Diagram of Process in Angul


2,388Cr. 9 MTPA Pellet 660 Investment Capacity Workforce

JSPL at Barbil


Flow Diagram of Process in Barbil


Process of Pelletisation


1,764 Cr. 1.6 MTPA Finished Steel 1,373 Investment Capacity Workforce

JSPL at Patratu


Bar Mill Processing Panther TMT Rebar

WRM Processing Wire Rod

Rebar Service Centre Processing Taking Shape Cut & Bend

Flow Diagram of Process in Patratu


Plant Installed Capacity

(MTPA)

Covered area (Sq. Mts)

Angul (Odisa)

84,000 32,000

Plant Installed Capacity

(MTPA)

Covered area (Sq. Mts)

Punjipatra (Raigarh)

1,20,000 60,000

Structural Steel Division


At Angul

• Widest Plate Mill (5m) in India with 4th generation Heat Reversible Treat Plate Leveler

• Roll Trip-steel/Silicon Steel/DD/EDD/IF grades : opens up opportunity for new and high margin product segments.

• Further processing to address value added markets: Galvanized & Coated Steel

• Largest BF in India (4554 m3), few among the world

Investing in State-of-the-Art Technologies & manufacturing system for high margin products

New Products & Technology Initiatives


At Raigarh

• RUBM to be leveraged with Head Hardened Rail Facility: To cater to metro boom in Indian cities.

• Only manufacturer of high margin HH rail in India.

• Galvanizing facility of structures: Catering to high margin TLT segment.

At Patratu

• State-of-the-art Wire-Rod Mill: Forward integrated with wire-drawing



At Oman • Commissioned its 2-MTPA ISP in Oman: Rode into the league of the three biggest steel

makers in the Arab peninsula. • SMS complex : EAF (200MT) largest in Middle East, a Ladle Furnace (200MT), Continuous

Billet Caster and Vacuum Degassing Furnace Facility • The new steel plant is among the most compact and advanced anywhere in the world:

commissioned from scratch in an astounding 23 months flat.



• Expanding Geographical reach of Steel sales – New offices setup in South Africa, Dubai,

Indonesia

• Launch of Channel financing in retail segment and Increasing the turnover by 3 times.

• Revamping "key account managers" concept for steel business

New Initiatives


Fabricated Structures Hot Rolled Plates

and Coils Parallel Flange Beams

Wire Rods Power

Angles and Channels

TMT Rebars Rails

JSPL Product Range


Presence in 27 states and 5 Union Territories covering 500 districts

Over 41 distributors and 1000 retail outlets

More than 1,300 dealers across country

27 Retail Sales Managers and 207 Distributors ASOs

731 Hoardings installed

450 Shop boards installed across country. More underway

Panther Brand launched on 5th August 2013 (National Event Organized)

Training sessions for Distributors & Dealers being organized across country

Launch of Panther TMT Bars Brand


Performance Highlights – Q1 FY 2014-15


Finished goods Inventory Reduction by 27%

Finished Steel sales grew by 11%

Retails sales grew by 284%

Over 25% growth in Retail Dealer network from March 2014

1.24 lakh MT steel exported - increase of 6% over Q1 last year

8% growth in NSR of Steel in Q1 FY 15 vs Q1 FY 14 Captive power generation increased by 29%

Key Highlights: Q1 FY14-15


• Modernization of BF – 1 completed

• Revamp of EAF - 1 completed in 15 days

• Slag Processing plant commissioned

Performance Highlights – Raigarh


Investing in State-of-the-Art Technologies & manufacturing system for high margin products

• Coal Gasification plant commissioned.

• DRI plant commissioned - Production started

• Use of syn gas in Re heating furnace Plate Mill, Lime and Dolo Kilns & SMS in

place of LDO/HSD.

• Started dispatch of CGP By products in the market

Performance Highlights – Angul


• Jindal Shadeed commissioned its state of the art 2 MTPA Steel Melting Shop, first &

largest integrated Steel Plant in Oman, on 23rd April 2014

Performance Highlights – Oman


Growth in Distributor Network (from 5 – 41)

Growth in Dealer Network (from 267 to 1472)

5

15 17 20 23 25 25 30

40 41 41 41 41 41 41 41

0

20

40

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

267 357 495 511 532 571 653 721 759

955 1014 1128 1216 1261 1360

0

200

400

600

800

1000

1200

1400

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

1472

JSPL’s Retail – Network growth


682 3,534 7,359

17,845 17,092 19,832

35,315

51,899

65,773

93,325

118,225

159,025

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15

Retail Sales (MT)

65,773 MT Channel sales in Q1FY 15 26% Growth in Retail Sales volume over Q4

JSPL’s Retail – Another Quantum jump


19

104

140

170

119

138

150 141

124

-

20

40

60

80

100

120

140

160

180

Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15

Export Sales (in MT) 4% growth in Export Sales in Q1 FY 15 (vs Q1 FY 14)

Focus on growth in Exports


89

57

13 17

10

142

79

145

147

96

63

6

18 13

143

93

128

166

-

20

40

60

80

100

120

140

160

180

200

Structural MLSM Conv Wld Beam Rail TMT Wire Rod Semis Plates

Q1 FY 14 Q1 FY 15

Growth uniform across products

Product wise Steel Sales

(volume in 000’ MT)

Copyright @ 2014 Jindal Steel & Power Limited 54 Power Plant at Tamnar

POWER


96.43% subsidiary of JSPL

Existing Units Phase I - 1000MW (4 X 250) Phase II - 1800MW (3 X 600)

Under Implementation 600MW (1 X 600)

JINDAL POWER LIMITED


Particulars Net Sales

(Cr.) PAT (Cr.)

Generation (MU)

PLF

Year 2013-14 2411 1107 8282 92%

Year 2012-13 2420 1113 7973 91%

Year 2011-12 2980 1765 8589 98%

JPL Financials


Quarter 1

Growth (%) 2014-15 2013-14

Turnover 702 647 9%

EBITDA 427 423 1%

EBITDA% 61% 65% -

PBT 246 406 (39%)

PBT% 35% 63% -

PAT 195 321 (39%)

PAT% 28% 50% -

Depreciation + Amortization 130 66 97%

Cash Profit 328 394 (17%)

Generation (million units) 2446 2184 12%

JPL Financials – Q1 FY 15


Transmission Lines at Voltage Status

Raigarh Pooling Station (Kotra) - Raigarh Pooling Station (Tamnar )

765 kV D/C Commissioned

Raichur- Sholapur 765 kV S/C Commissioned

Raigarh Pooling Station - Raipur Pooling Station 765 kV D/C Commissioned

Raigarh Pooling Station (Kotra) - Raigarh 400 kV D/C Commissioned

Wardha -Aurangabad 765 kV D/C Commissioned

Raichur - Sholapur 765 kV S/C (2nd Circuit) Commissioned

Raipur -Wardha 765 kV D/C By Aug- Sep 2014

Gwalior- Jaipur 765 kV S/C (2 Nos) By Dec -Jan 2014

Champa - Kurukshetra 800 kV HVDC By Dec 2015

These Transmission Lines would help in evacuation of Power for JPL

Transmission Lines

Copyright @ 2014 Jindal Steel & Power Limited 59 Corporate Office, Jindal Africa


Global Business – A Two Pronged Focus • A Platform to Enhance Backward Integration

• A Driver for Profitable Growth - New Markets & Strategic Beachheads

JSPL – The Global Footprint


Developing a coal mine

(3 MTPA) in

Mozambique’s coal-rich

Moatize region

Coal resources

estimated at 1.2 bn

tonnes including coking

coal

Mozambique, Africa

JSPL’s Kiepersol Colliery produces about 1.2

MTPA of Anthracite coal, sold domestically and

internationally Plans to ramp up capacity to 2

MTPA

South Africa, Africa

Botswana, Africa Acquired CIC Energy in 2012 for 120 mn USD

Coal Mine with Resource of over 3 bn MT (high

grade thermal coal)

Proposed Cement Plant

Madagascar, Africa

Acquired 74.39% controlling

stake in Wollongong Coal

(Erstwhile Gujarat NRE coking

coal Limited)

Australia

1.5 MT HBI Plant – plan to make

it an Integrated Steel Plant

Shadeed, Oman Medium to large size

deposits of prime hard

coking and low ash – low

sulphur thermal coal for

open-cast operation

Indonesia, Asia

Summary of International Operations


Production HBI (MT): 353,727 Sales (MT): 312,046 Sales (Million USD): 111 EBITDA (million USD): 22

OMAN

Production (MT): 69,914 Sales (MT): 59,166 Sales (Million USD): 6 EBITDA (million USD): (1)

SOUTH AFRICA

Production (MT): 111,565 Sales (MT): 99,616 Sales (Million USD): 7.5 EBITDA (million USD): (5)

MOZAMBIQUE

Production (MT): 42,145 Sales (MT): 85,636 Sales (Million USD): 15 EBITDA (million USD): 3

Wollongong Coal Ltd

Global Ventures - Production & Sales – FY 13-14


In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC, a company incorporated under

the laws of the Sultanate of Oman

• Gas-based 1.5 MTPA HBI plant at Sohar Industrial Port commenced production in January 2011

• Commissioned steelmaking facility of 2 MTPA in CY14

Investment

US$ 525 mn

Capacity

2 MTPA Steel

Jindal Shadeed – Oman


• Potential Resource: 2 bn MT

• Grade: Semi Hard coking coal , High Grade Thermal Coal

• Current Mining @ 3 MTPA run rate

• 3 MTPA Coal Washery commissioned

Mozambique, Africa


Mining Operations taken over with effect from 1st July 2014

Reverse Freight Contract finalized for carrying 3,00,000 Tonnes of cargo from Beira to Moatize

Floatation Plant to be commissioned in August, 14 which would reduce ash content in Coking coal

Mozambique - Key Operational Highlights


Unique unmatched location with significant strategic advantages

Unique Geographic Location • Wollongong (80 kms. South of

Sydney) experienced mining community

available • Port Kembla: < 20 kms. with

sufficient coal handling and Cape size capacity

• Easy and reliable connectivity through Rail and Road

Activities :

Manpower reduced from 590 to 241

Restructuring of Bank Loans

Arrangement made with most of the suppliers for their past liabilities though phased payment plans(About A$ 24 million paid out of A$ 41 million)

Wollongong Coal Limited- Australia


• Southern Africa head office is based in Johannesburg, South Africa

• Operations include Kiepersol Colliery outside the town of Piet Retief in Mpumalanga province

• The mine produces high-quality anthracite coal, sold nationally and internationally

• Underground mining with 1.2 MTPA capacity annually

South Africa, Africa


Thermal Coal Asset

• Large size deposit of low ash – low sulphur thermal coal for open cast operation

• Coal mining license obtained in 2009 for 10 years till March 2018 for over 35.9 square Kilometres

• Permit received from the Ministry of Forest for the entire concession area

• MoU signed with Bupati Barito to develop road for coal hauling • 139 hectares acquired for the first phase of mining • Acquired 17.7 hectares for the development of captive coal terminal for coal handling and

barge loading at Barito River

Coking Coal Asset

Exploration License over 100 square kilometre in Central Kalimantan

Medium to large size deposits of prime hard coking and thermal coal for open-cast operation Pit Sampling

Indonesia, Asia


Financial Performance


Financial Results – Consolidated

Interest, 268

Depreciation , 422

PBT, 669

PAT, 501

EBITDA, 1,305

Interest, 535

Depreciation , 667

PBT, 517

PAT, 402

EBITDA, 1,626

Q1 FY14 Q1 FY15

Increased Interest & Depreciation cost drops profit

EBITDA continues to Rise


Financial Results – Standalone Q1 FY15

Particulars (Rupees in Crores) For the Quarter ending %

30.06.2014 31.03.2014 30.06.2013 Y ON Y Q ON Q

Turnover-Total 3,584 3,813 3,425 4.6% -6.0%

EBITDA 1,192 972 848 40.6% 22.7%

Depreciation 415 316 304 36.8% 31.6%

Finance costs 428 405 232 84.8% 5.8%

PBT 370 385 319 16.2% -3.9%

Profit after Tax 306 431 239 28.2% -28.9%

Cash Profit 786 777 555 41.4% 1.1%

CAPEX 720 1,101 1,228


Ratio (%) 2014-15 2013-14 2013-14 2013-14

Q1 Q4 Q1 Annual

Raw Material to turnover 26.7 31.6 34.8 32.5

EBITDA to turnover 33.3 25.5 24.7 27.6

Profit before tax to turnover 10.3 10.1 9.3 11.0

Profit after tax to turnover 8.5 11.3 7.0 8.9

Debt Equity Ratio 1.8 1.8 1.6 1.8

Current Ratio 0.7 0.9 1.0 0.9

Interest Service Coverage Ratio 2.1 2.2 2.4 2.2

Debt Service Coverage Ratio 1.2 1.3 1.8 1.3

Financial Ratios – Standalone Q1 FY15


30.06.2014 31.03.2014 30.06.2013 Y ON Y Q ON Q

Turnover-Total 4,978 5,267 4,540 9.6% -5.5%

EBITDA 1,626 1,314 1,305 24.6% 23.8%

Depreciation 667 514 422 58.2% 29.8%

Finance costs 535 423 268 100.1% 26.5%

PBT 517 396 669 -22.8% 30.4%

Profit after Tax 402 378 501 -19.8% 6.2%

Cash Profit 1,149 947 929 23.7% 21.3%

CAPEX 2,172 2,832 2,568

Particulars (Rupees in Crores)For the Quarter ending %

Financial Results – Consolidated Q1 FY15


FY15 FY14 FY14 FY14

Q1 Q4 Q1 Annual

Raw Material to Turnover (%) 26.9 29.5 30.7 31.1

EBITDA to turnover (%) 32.7 24.9 28.7 28.9

Profit before tax to turnover (%) 10.4 7.5 14.7 12.6

Profit after tax to turnover (%) 8.1 7.2 11.0 9.5

Debt Equity Ratio 1.7 1.7 1.3 1.7

Current Ratio 0.8 0.8 1.0 0.8

Interest Service Coverage Ratio 2.3 2.7 3.4 2.7

Debt Service Coverage Ratio 1.4 1.6 3.0 1.6

Ratio

Financial Ratios – Consolidated Q1 FY15


(Rupees in Crores) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Q1 FY 15

INCOME STATEMENT

PAT 305 516 573 703 1,251 3,007 3,635 3,804 4,002 2,912 1,894 402

Revenue 1,273 2,271 2,618 3,549 5,539 10,913 11,152 13,194 18,351 19,807 20,004 4,870

Cash Profit 434 766 858 1,170 1,810 4,194 4,760 5,115 5,575 4,593 3,876 1,149

EBITDA 512 908 1,034 1,428 2,253 5,908 5,232 6,398 6,935 6,669 5,776 1,626

BALANCE SHEET

Gross Block 1,967 2,876 5,198 8,690 10,680 14,928 21,109 29,317 35,802 45,912 63,056 65,181

Net Worth 854 1,317 1,899 2,540 3,824 7,021 10,387 14,088 17,931 21,150 21,191 21,564

Borrowings 1,026 1,495 2,745 3,507 6,996 8,113 8,605 13,987 17,058 24,618 36,368 37,111

Equity 15 15 15 15 15 15 93 93 93 93.48 91.49 91.49

SIGNIFICANT RATIOS

Operating Margin (%) 40% 40% 40% 41% 41% 48% 53% 49% 39% 34% 28% 33%

Net Profit to Sales (%) 24% 23% 22% 20% 23% 28% 33% 29% 22% 15% 9% 8%

Return on Net Worth (%) 36% 39% 31% 28% 34% 43% 35% 27% 22% 14% 9% 2%

Long Term Debt Equity Ratio 1.09 1.11 1.2 1.07 1.74 1.03 0.59 0.7 0.61 0.77 1.29 1.3

EPS (INR/Share) (a) (b) 3.34 5.58 6.31 7.64 13.54 32.44 39.05 40.75 42.42 31.13 20.53 20.53

Consolidated Financials at a Glance


854 1,317 1,899 2,540 3,824

7,021

10,387

14,088

17,931

21,150 21,191

-

5,000

10,000

15,000

20,000

25,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Net Worth

Net worth zooms by 2381% in 10 Years

Net Worth


Capacity Enhancement

1,967 2,876 5,1988,690 10,680

14,928

21,109

29,317

35,802

45,912

63,056

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000


Gross Block

Gross Block


1,2732,271 2,618

3,549

5,539

10,913 11,152

13,194

18,35119,807 20,004

0

5,000

10,000

15,000

20,000

25,000


Revenue Increased around 15 times over the last 10 years

Revenue


512908 1,034

1,428

2,253

5,908

5,232

6,398

6,9356,669

5,776

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


Healthy EBITDA margin continues year after year

EBITDA


Way Forward


Commission the balance one

unit of 600 MW at Tamnar in H2 of FY 15

Target “Break - Even” performance in Mozambique by

FY 15

Stabilize production from CGP and DRI in

Angul.

To target 15% to 20% of total

revenue from exports

To bring down Net

Debt/EBITDA

< 4X

Going Forward: Prime Focus in FY15


Making Sustainability a Focus Priority


9 PILLARS OF CSR

A Responsible Corporate Citizen


A Responsible Corporate Citizen


2014 Shrishti Global Award -2014 Global HR Excellence Award-2014

2013 International Safety Award with merit 2014 by British Safety Council, UK. World CSR Congress Award 2013 Greentech CSR Award 2013

2012 Golden Peacock National CSR Award 2012

2011

Ranked No.1 as Wealth Creator in India over a 10- year period (Business World)

Awarded the Dun & Bradstreet- Rolta Corporate Awards 2011

Ranked 3rd in the Metals Category of Business World’s India’s Most Respected Companies Survey

Received the Forbes Asia’s ‘Fabulous 50’ International Award

Golden Peacock Innovation Management Awards

Greentech Award for 1st Position in Metal & Mining Industries

World HRD Congress CSR Award on women empowerment

2010

Rated the World’s 2nd Largest Value Creator by Boston Consulting Group (BCG), based on Total Shareholder Return from 2005-2009, and the largest Value Creator in Mining and Materials category

Received the Forbes Asia’s ‘Fabulous 50’ International Award

Golden Peacock Innovation Management Awards

CSR Excellence Award 2010 by ASSOCHAM for promoting and propagating Corporate Social Responsibility initiatives

2009

Received the CNBC’s Most Promising Entrant into the Big League at IBLA

National Energy Conservation Award

Golden Peacock Innovation Award 2009

Winner of ‘Shrishti Green Cube Award 2009

SAIL HR Excellence Award 2009

Award and Accolades


SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING

SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS

Health & Safety Best Practices


TOOL BOX MEETINGS SAFETY AWARDS/REWARDS

MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS

Health & Safety Best Practices


Raigarh Blast Furnace - I


Angul - Coal Gasification Plant


Angul - DRI


Angul – Steel Melting Shop (SMS)


Angul – Plate Mill


Angul – 6 x 135 MW Captive Power Plant


SMS - Jindal Shadeed, Oman


Jindal Shadeed, Oman


Rolling Mill Under Construction : Jindal Shadeed,

Oman


Barbil Pellet Plant


Marketing Network


D.Balasubramanyam Head of Investor Relations Tel: 011-26739109, Mobile: 8130755166 Email: [email protected]

Ms. Pallavi Kumari Investor Relations Tel: 011-26739165, Mobile: 8800094171 Email: [email protected]

For any information please contact : -


Thank You

jindal steel and power ltd - aceanalyser meet/132286_20140806.pdfannual turnover of jspl us$ 3.3 bn+...

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