j~ · 2018-01-25 · disclaimer this presentation may contain certain forward looking statements...
TRANSCRIPT
January 25, 2018
BSE Ltd. Phi.raze Jeejeebhoy Towers Dalal Sh·eet Mumbai - 400 001 Securitv Code No.: 532286
)INDAL~ STEEL & POWER
National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, C-1, Block G Bandra - Kurla Complex, Bandra (E) Mumbai - 400 051 Security Code No.: TINDALSTEL
Subject: Intimation under Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Schedule of Analyst/Institutional Investor Meet/Call and Presentation on Industry update and key performance highlights
Dear Sir / Madam,
We wish to inform that the Company will hold Earnings Conference Call on January 29, 2018* at 11:00 Hrs. IST.
In addition to the above, please find enclosed presentation on Industry update and key perform.ance highlights for Qb.·. 3 of FY 2017-18.
The abovesaid information is submitted pmsuant to SEBI (LODR) Regulations, 2015.
We have also uploaded the same in the website of the Company at www .jindalsteelpower.com.
*The schedule of the abovesaid meeting is subject to change due to any exigency on the part of investor/broking firm/ company.
This is for your information and record.
Thanking You.
Sincerely,
For Jindal Steel & Power Limited
J~ Vice President & Company Secretary
Encl: as above
Jindal Steel & Power Limited Cor~ o Of I Jindal Centre, 12 Bhikaiji Cama Place, New Delhi 110 066 CIN: L27105HR1979PLC009913 T +91 114146 2000 F +9111 2616 1271 r'J www.iindalsteelpower.com. r [email protected] P 1 t '.IC ril O. P. Jindal Marg, Hisa r, 1 25 005, Haryana
Q3 FY’18
Industry Update &
Key Performance Highlights
25th January, 2018
DISCLAIMER This presentation may contain certain forward looking statements concerning 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 forward looking statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. We do not undertake to update our forward-looking statements.
This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in JSPL or any of it’s subsidiary undertakings or any other invitation or inducement to engage in investment activities, neither shall this presentation nor the fact of it’s distribution form the basis of, or be relied on in connection with, any contract or investment decision. Few numbers in this presentation are purely indicative & provisional and could change later.
2
Q3 FY’18
INDUSTRY DEVELOPMENTS
BRIEF BACKGROUND OPERATIONAL PERFORMANCE
PRESENTATION OUTLINE
3
Source: WSA
Green Shoots in Global Steel Market
> 2018 world Finished Steel Demand Revised Upward
> Protectionism and capacity reduction lead to lower pressure from Chinese Export
> Global Steel Prices stabilizes due to Upward
demand and Firming Raw material prices
1.60%
5%
1.10%
0%
5.70%
0.80% 1%
World Middle East Asia & Oceania
China India Japan USA
CY 2018 steel demand outlook revised upward
1. Global growth momentum strengthens and is on a broader footing . Solid U.S. fundamental, firming recovery in
EU, China re-acceleration, recovery in developing economies
2. Most benign global economic environment since the financial crisis
3. Growth in India and ASEAN remains on a solid ground
4. Many developing countries are progressing with structural reforms
4
Source: JPC 5
Indian Steel Scenario : Apr-Nov FY ’18 Major Highlights
April- Dec FY ‘18 : Other Highlights > Crude Production of Primary Producers grew by 6.8% (y-o-y) (43.5Mt. > India remains the Net Exporter of steel during 9months FY ’18 > Finished Steel Demand :
o Over all Steel consumption of finished steel grew by 5.2% o Finished Carbon Steel Consumption grew by 4.9%, While Finished Alloy Steel Consumption increased by
8%
(Qty : Mt) FY ‘17 April-Dec FY ‘18
Domestic Steel Industry Qty change
Qty change
(y-o-y) (y-o-y)
Crude Steel Production 97.4 8.50% 75.6 4.8%
Finished Steel (Non Alloy+Alloy)
Import 7.23 -38% 6.1 11%
Export 8.25 102% 7.6 53%
Real Consumption (Demand) 83.65 2.60% 64.87 5.2%
INDUSTRY UPDATE STEEL SECTOR
6
Source: Platts/Steel Mint 7
International Iron Ore & Pellet Price Trend
81
89 87
71
62
57
67
75
70
61
64
72
77 76
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
IO Fines ($/MT) CFR China
97 96
103
97
81
84
93
108
125
121 123
128 126
128
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
IO Pellets ($/MT) CFR China
Source: Platts/Steel Mint 8
Domestic Iron Ore Trend
1675 1675
1825
1650
1550
1850
2050
2750
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
Domestic IO Fines (Rs/MT)
3600
3900
4300
3750
3500
4100
4500
5800
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
Domestic IO Lumps (Rs/MT)
Source: Platts, Argus 9
International Coal : Price Trend
260
171
146 166
197 203 183
259
242 250 262
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
Prime Hard Coking Coal ($/MT FOB Australia)
77 72 72 72
87 92 91 91
95 97 95
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
La
test
Steam Coal RB1 ($/MT FOB S Africa)
INDUSTRY UPDATE POWER SECTOR
10
Source: IEX 11
Major Updates: Exchange Prices
2.03 2.05
2.12 2.37
2.56
2.25 2.11
2.73
3.74
3.74
3.21
2.66
1.90 1.77
2.06
2.35
1.72
1.89
1.76 1.74
2.01
2.06
1.91 1.8
2.25
1.97
1.86
2.13 1.91
1.84
1.86 2.05
3.06
2.55
2.20 2.11
1.3
1.8
2.3
2.8
3.3
3.8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RTC Power Exchange Prices – W3 Area – Ex-Bus (Rs./kWh)
2017 2016 2015
* For equal comparison, present Transmission charges/losses of Rs 0.34/Unit taken for all years.
Q3’FY18
INDUSTRY DEVELOPMENTS
BRIEF BACKGROUND
PRESENTATION OUTLINE
OPERATIONAL PERFORMANCE
12
Steel Power Global Ventures
Current Capacities – Domestic & Global
Business Segments
*Domestic **1000 MW Divestment announced
8.6 MTPA Steel* 3.11 MTPA* Iron ore 9 MTPA* Pellet Plant
IPP – 3400MW** CPP – 1634 MW
2 MTPA Steel Coal Mines
13
Capacity in deail
Iron Making
(9.95 MTPA)
BF 5.33 MTPA
DRI 3.12 MTPA
HBI 1.50 MTPA
Liquid Steel
(10.60 MTPA)
SMS 10.60 MTPA
Finished Steel
(6.55 MTPA)
WRM 0.60 MTPA
RUBM 0.75 MTPA
MLSM 0.60 MTPA
Plate Mill 2.20 MTPA
BRM 2.4 MTPA
Steel Capacities across Life Cycle
14
Capacity in deail
Raigarh (Chhattisgarh)
SMS 3.6MTPA
BF 2.125 MTPA
DRI 1.32 MTPA
Plate Mill 1.00 MTPA
RUBM 0.75 MTPA
MLSM 0.60 MTPA
CPP 824 MW
Angul
(Odisha)
SMS 2.5 MTPA
SMS 2.5 MTPA
DRI 1.8 MTPA
BF 3.2 MTPA
CGP 225,000 Nm3/Hr
Plate Mill 1.2 MTPA
BRM 1.4 MTPA
CPP 810 MW
Barbil
(Odisha)
Pellet Plant
9 MTPA
Patratu (Jharkhand)
WRM 0.60
MTPA
BRM 1.0 MTPA
Oman
SMS 2.0 MTPA
HBI 1.5 MTPA
BRM 1.4 MTPA
JPL
Tamnar 3400 MW
Mining
Iron Ore 3.11
MTPA
Coal Overseas
6.60 MTPA
Detailed plant wise capacities
Power Hot Metal Liquid Steel Finished Steel
*Plant capacities shown above are completed but not all are commissioned
15
Standalone Q3 FY 18 –Snapshot of Key Financials (Figures in Rs. Crores)
Particulars Q3FY18 Q2FY18 Q3FY17 %QoQ %YoY
Total Revenue 4,272 3,668 3,898 +16% +10%
EBITDA 921 784 784 +17% +17%
EBITDA % 22% 21% 20%
Depreciation 465 496 542 -6% -14%
Finance Cost 594 578 540 +3% +10%
PBT (Before Exceptional) (138) (290) (298) +52% +54%
Exceptional -- 150 --
Profit/(Loss) Before Tax (138) (440) (298) +69% +54%
Profit/(Loss) After Tax (74) (255) (187) +71% +60%
Cash Profit 327 56 244 +484% +34%
16
Angul
Tamnar
Raigarh Captive power projects (within JSPL)
Project Capacity
(MW) Fuel Configuration Status
DCPP, Raigarh 540 Coal 4x135 MW Operational
JSPL, Raigarh 284 Coal & waste heat
1x24 MW (Waste heat)
2x55 MW 6x25 MW
Operational
Angul, Odisha 810 Coal 6 x135 MW Operational
Independent Power Projects (IPP)
Project Capacity
(MW) Fuel Configuration Status
Tamnar 1* 1,000 Coal 4x250 MW Operational
Tamnar 2 2,400 Coal 4x600 MW Operational
IPP CPP
One of the largest thermal portfolios in India
JSPL - Power Capacities
*Divestment announced 17
96.43% subsidiary of JSPL
JINDAL POWER LIMITED
EUP -I 1000MW (4 X 250)
EUP -II 1200MW (2 X 600)
EUP -III 1200MW (2 X 600)
18
Project Buyer Type
Period Quantum (MW) From To
Tamnar II
(Phase 1) Tamil Nadu
Long Term Feb-14 Sep-28 400
Tamnar I Medium Term Sep-17 Aug-19 200
Tamnar II
(Phase 1) KSEB
Long Term Jun-16 May-41 200
Tamnar II
(Phase 1) Long Term Oct-17 Sep-42 150
Tamnar II
(Phase 1) Chhattisgarh
Long Term After commercial operation of Unit and for complete life
of plant
60
Tamnar II
(Phase 2) Long Term 60
PPA Arrangements
Over 30% of total capacity tied up *
* Out of 3400 MW (IPP) 19
Tamnar-I, 1,000 MW (EUP I)
Coal sourced through – market purchase and e-auction
Bilateral/short term/ exchange
TNEB – 200 MW
Open access available
Tamnar-II - 1,200 MW (EUP II)
Long term linkage from Mahanadi Coal Limited (MCL) and South Eastern Coalfields Limited (SECL)
TNEB – 400MW
CSEB – 60MW
KSEB – 200MW
KSEB – 150MW
Open access available
Tamnar-II - 1,200 MW (EUP III)
Coal sourced through – market purchase and e-auction
CSEB – 60MW
Open access available
FSA
PPA
Evacuation
Raw materials, transmission & PPAs in place for achieving higher PLF
Key Contractual Arrangements for JPL
20
JPL Q3 FY18 – Snapshot of Key Financials (Figures in Rs. Crores)
Particulars Q3FY18 Q2FY18 Q3FY17 %QoQ %YoY
Net Sales 1,172 878 854 +33% +37%
EBITDA 356 345 302 +3% +18%
EBITDA % 30% 39% 35%
Depreciation + Amortization 381 377 385 +1% -1%
Interest 244 227 200 +8% +22%
Profit/(Loss) Before Tax (198) (190) (182) -4% -8%
Profit/(Loss) After Tax (173) (176) (162) +1% -7%
Cash Profit 186 187 203 -- -8%
Generation (MU) 2,982 2,427 2,356 +23% +27%
21
Developing a 3 MTPA coal
mine in Mozambique’s coal-
rich Moatize region
Mozambique, Africa
JSPL’s Kiepersol Colliery produces Anthracite coal,
sold domestically and internationally.
South Africa, Africa
Acquired 60.3% stake in
Wollongong Coal
Australia
1.5 MT HBI , 2 MT SMS Plant &
1.4MTPA Rebar Mill – an
Integrated Steel Plant
Shadeed, Oman
Summary of International Operations
22
Oman
Holding structure for global operations
Jindal Steel & Power Ltd
Listed Operating Entity in India
Australia
Coking Coal
South Africa
Anthracite Coal
Mozambique
Thermal/ Coking Coal
Jindal Steel & Power (Mauritius) Ltd
Holding company for overseas business
2 MTPA Steel plant
23
Consolidated Q3 FY 18 –Snapshot of Key Financials
Particulars Q3FY18 Q2FY18 Q3FY17 %QoQ %YoY
Total Revenue 6,993 6,124 5,787 +14% +21%
EBITDA 1,606 1,373 1,277 +17% +26%
EBITDA % 23% 22% 22%
Depreciation 963 998 1,027 -3% -6%
Finance Cost 967 927 835 +4% +16%
PBT Before Exceptional (323) (550) (586) +41% +45%
Exceptional -- 150 --
Profit/(Loss) Before Tax (323) (699) (586) +54% +45%
Profit/(Loss) After Tax (277) (499) (455) +44% +39%
Cash Profit 643 298 442 +116% +45%
(Figures in Rs. Crores)
24
Q3 FY’18
INDUSTRY DEVELOPMENTS
BRIEF BACKGROUND
PRESENTATION OUTLINE
OPERATIONAL PERFORMANCE
25
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0.88 0.84
0.91 0.90 0.89 0.97
0.28 0.31
0.39 0.36 0.43 0.42
Jindal Shadeed JSPL
1.26 1.16 1.15 1.30
Consolidated Steel Production
(Figures in Million Tonnes)
1.32
Consolidated Steel Sales
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0.81 0.84 0.92 0.81 0.83 0.94
0.27 0.32
0.39
0.34
0.43 0.42
Jindal Shadeed JSPL
1.15 1.08 1.16 1.31 1.27
26
1.39 1.36
Key Performance Highlights
Basic Oxygen Furnace completed at Angul.
JSPL’s Standalone EBITDA increased by 17% Y-o-Y for Q3FY18
JSPL’s Consolidated EBITDA increased by 26% Y-o-Y for Q3FY18
Oman ‘s EBITDA increased by 198% Y-o-Y in 3QFY18
Commencement of mining operations in Australia
Increase in JPL Generation by 27% and in EBITDA by 18% Y-o-Y in Q3FY18
27
Key Customers & Adding…
28
For any information please contact: - Mr. Nishant Baranwal – Head, Investor Relations Tel : +91 11-41462198 Mobile:+91 8800690255 Email: - [email protected] Ms. Shweta Bagaria – Assistant Manager, Investor Relations Tel: +91-124-6612073 Mobile: +91 95995 53717 Email: [email protected]
29
THANK YOU
30
Jindal Steel & Power Concall to discuss 3QFY18 earnings
Day, Date, Time
Monday, 29th January 2018 at 11.00 hours IST
Please dial in at 10.55 hours IST
Company participants • Mr. N.A. Ansari — CEO- Steel • Mr. Sanjay Sagar — MD-Power • Mr. Deepak Sogani — CFO • Mr. Nishant Baranwal — Head- Investor Relations
Dial-in numbers India Universal Access: – +91 (22) 3938 1079 Local Access: – +91-7045671221 (available all over India) International (toll free) Hong Kong – 800 964 448 Singapore – 800 101 2045 UK – 0 808 101 1573 USA – 1 866 746 2133
Please register online at following link to receive dial-in passcodes for direct access. http://services.choruscall.in/diamondpass/registration?confirmationNumber=1645246
Conference Call
R S V P: Sanjay Jain +91 22 3982 5412; [email protected] Motilal Oswal Tower, Level 9, Sayani Rd, Prabhadevi, Mumbai 400 025 Phone: +91 22 3089 4200