Corporate Presentation, JSPL

8/14/2019 Corporate Presentation, JSPL

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JINDAL STEEL & POWER LIMITEDJINDAL STEEL & POWER LIMITED

1 CORPORATE PRESENTATIONCORPORATE PRESENTATION



2

JSPL Group CompaniesJSPL Group Companies

Jindal Steel & Power Limited (JSPL)

Jindal Power Limited (JPL)

Jindal Petroleum Limited (JPTL)



3

SnapshotSnapshot -- SteelSteel

Operating 3 Million Ton capacity Steel Plant in Central India (Chhattisgarh)

Operating largest Coal Based Sponge Iron Plant in the world(Capacity - 1.4 Million ton)

The Company has track record of continuous growth of 10 years

The corporate philosophy of JSPL has been consistent growth throughfocus on its core sectors

Produces ‘A Class’ 120 meter long rails, the world’s longest rails



SnapshotSnapshot -- PowerPower

Set up 1000 MW Thermal Power Plant in Central India (Chhattisgarh)

First Mega Power Project in the Private Sector

Constructed 258 Km long 400 KV double circuit transmission line

Constructed 55 Km long 220 KV double circuit transmission line

Operating 340 MW power plant based on washery rejects & waste gases

2nd largest power producer in the private sector in India



Coal & Iron Ore Mines

Extracting 12 MT thermal coal from captive mines

Largest producer of Coal in private sector

Operating 6 MT capacity coal washery

Setting up additional 6 MT capacity coal washery

Extracting about 3.0 MT iron ore from captive mine



Industrial Park

Established an Industrial Park where 32 Industrial Units are already in

operation

Supplying 100 MW power to these units through 220 KV dedicatedtransmission line

Total 70 units are planned in this Industrial Park

- Ultimately 300 MW power will be supplied to the Industrial Park

Tariff of power supply is far less as compared to State Governmenttariff

Holding distribution license for supply of power to Industrial Park



Business Segments

Iron and Steel Manufacturing

Iron Ore and Coal Mining

Power Generation

Product Portfolio

Sponge Iron / Pig Iron Hot Rolled Parallel Flange

Beams & Structurals

Semis (Slabs, Blooms, Rounds, Billets)

Rails

Plates & Coils

Power

Product MixProduct Mix



IntegrationIntegration

Iron Orefrom Mines

Coal fromMines

Coal Washery

BF

Coking

Coal

Pig Iron

POWER

PLANT*CSEB/OTHERS

EAF

RAIL & UNIVERSAL BEAM

MILL

ROTARY KILNS

Rails Structurals

WasheryRejects

Sponge

Iron

Char/ Flu Gases

Rounds/

Blooms/Slabs/Billets

Sale

Sale

Sale

Sale

Sale

Sale

SINTER PLANT

PLATE MI LL

Sale

PLATES & COILS

Sinter

COKEOVEN

COKE

* Captive Power Plant supplies power to all facilities

COAL

FINES



Raigarh, Chhattisgarh

FacilitiesFacilities

Existing Capacity (MTPA)

Sponge Iron (coal based) 1,370,000

Steel 3,000,000

Rails & Structurals 750,000

Plates 1,000,000

Slabs,Rounds,Blooms & Billets 1,250,000

Hot Metal 1,500,000

Captive Power Plant 340 MW



Steel Production Globally: 2008Steel Production Globally: 2008

•Global crude steel output has shrunk 1.2% (-) in 2008. It is nearly 25% lower, yoy.•Liquidity shrinkage has discouraged inventory holding and encouraged excessive inventory liquidation, raised speculationon prices, caused raw materials supply disruptions and affected Steel producers.

Source: Steel and Natural Resources Strategy Research ( SNRSR)



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Top ten Steel Producing Countries in the World(Production figures in million tones)

Country Rank 2008 2007

China 1 502.0 489.2

Japan 2 118.7 120.2

UnitedStates 3 91.5 98.2

Russia 4 68.5 72.4

India 5 55.1 53.1SouthKorea 6 53.5 51.5

Germany 7 45.8 48.6

Ukraine 8 37.1 42.8

Brazil 9 33.7 33.8

Italy 10 30.5 31.5




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IndiaIndia -- Projected Trends of Steel ConsumptionProjected Trends of Steel Consumption

Source: Steel and Natural Resources Strategy Research ( SNRSR) Estimates based on Joint Plant Committee (JPC) and industry information



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FinancialsFinancials



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Consolidated Financials at a GlanceConsolidated Financials at a Glance

(Rupees in Mill ion)2007-08 2008-09

AUDITED AUDITED

(12 months) (12 months)

INCOME STA TEMENT

Gross Turnov er 61005 113709

Net Turnov er 55387 109133

Net Profit A fte r Tax 12511 30071

Cash Pro fit 18169 42502

BA LA NCE SHEET

Gross Fixed A sset s ( incl. WIP) 106796 149277Networth 37278 70211

Borrowings 69960 81133

Share Capital:

Preference

Equity 154 155

SIGNIFICA NT RA TIOS

Operat ing Margin (%) 41% 48%

Net Profit to Sa les (%) 23% 28%

Return on Net Wort h (%) 34% 43%

Long Term Debt Equity Rat io (Time) 1.74 1.03

Book Value (INR/ Share) 242# 453#EPS (INR/ Share) 81# 194#

# EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07



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Consistent GrowthConsistent Growth-- 30 Quarterly PAT30 Quarterly PAT

(Consolidated)(Consolidated)

3191

2774

1571

1531

296

263 263

316

389

603

595

502

583

802

1166

1215

123512391466

1502

1454

1264

15061899

2025

2501

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Se

p-0 1

De

c -0 1

Ma

r -02

Ju

n-02

S e

p-02

De

c -02

Ma

r -03

Ju

n-03

S e

p-03

De

c -03

Ma

r -04

Ju

n-0 4

S e

p-04

De

c -0 4

Ma

r -0 5

Ju

n-05

Se

p-05

De

c -05

Ma

r -06

Ju

n-0 6

S e

p-0 6

De

c -06

Ma

r -07

Ju

n-07

Se

p-07

De

c -0 7

Ma

r -08

Ju

n-08

S e

p-0 8

De

c -08

Ma

r -0 9

*

(Rupees in Mill ion

8998

7647

4436

4097



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Financials at a GlanceFinancials at a Glance (Rupees in Mill ion

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-0 AUDITED AUDITED AUDITED AUDITED AUDITED AUDITED AUDIT

(12 Months) (12 Months) (12 Months) (12 Months) (12 months) (12 months) (12 months

INCOME STATEMENT

Gross Turnov er 10017 14039 24673 29055 39487 61807 8580

Net Turnov er 8891 12729 2271 26177 35488 54560 7799Net Profit A fter Tax 1451 3054 5157 5729 7030 12369 1536

Cash Prof it 2671 4342 7658 8581 11745 17681 2074

BA LA NCE SHEET

Gross Fixed A sset s (incl. WIP) 15040 19669 28759 43893 58669 65794 9680

Networth 5712 8539 13174 18379 24742 37211 5384Borrowings 8852 10260 14959 27454 35077 38633 4962

Share Capital:

Preference 100

Equity 146 154 154 154 154 154 15

SIGNIFICA NT RA TIOS

Opera t ing Margin (%) 39% 40% 40% 40% 41% 40% 33%

Net Profit t o Sales (%) 16% 24% 23% 22% 20% 23% 20%

Return on Net Wort h (%) 25% 36% 39% 31% 28% 33% 29%

Long Term Debt Equity Rat io (Time) 1.41 1.09 1.11 1.20 1.07 0.90 0.7

Book Value (INR/ Share) 195 277 428 597 803 242# 348#

EPS (INR/ Share) 52 100 167 186 228 80# 99#

# EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07



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9,932

CAGR 34 %

8185 10566

17826 20214

30781

53060

80918

1301

24382682

2857

2467

1428

5789

5559

446 1965

42355883

0

10000

20000

30000

40000

50000

60000

70000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Year

R s .

i n C r o

r e s

Others^

Power

Steel

13,959 24,499 28,779

FinancialsFinancials -- Revenue MixRevenue Mix (Rupees in Mill ion

39,198 61,316 84,338

*Net of Inter Divisional Transfers

^Incl. Iron Ore Fines



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FinancialsFinancials – – Investing in Grow thInvesting in Grow th

Yearly Capex to Cash Flows (Rupees in Mill ion Yearly Capex to Cash Flows

2313

48153838

5071

7268

9492

5464

15574

11570

1580514118

7657

2702025691

0

4000

8000

12000

16000

20000

24000

28000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Cash Flows

Capex

0.951.3 2.9 1.4 0.6Times 2.1 1.3



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FinancialsFinancials – – Investors FaithInvestors Faith (Rupees in Mill ion

Promoters

59%

FI/Banks/MFs/

FIIs

24%

Public

17%

15446 3167757655

72303

389523

0

50000

100000

150000

200000

250000

300000

350000

400000

2003-04 2004-05 2005-06 2006-07 15 Jun'09

2 5 T i m e

s

2 5 T i m e

s

Market CapitalisationMarket CapitalisationShareholding PatternShareholding Pattern-- Mar,09Mar,09



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Future Growth DriversFuture Growth Drivers



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Future Growth DriversFuture Growth Drivers -- OrissaOrissaProject ProfileProject Profile

PROJECT : Phase – I

6 MTPA Integrated Steel Plant& 900 MW Captive Power Plant

LOCATION : Angul, Orissa

PROPOSED FACILITIES

1. Coal Gasification & Gas Based DRI : 4.0 MTPA2. Blast Furnace : 3.0 MTPA3. Steel Making Facilities : 6.0 MTPA

4. Flat Products (Plates and HR Coils) : 6.0 MTPA5. Power Plant : 810 MW

RESOURCES

I. Coal Block, Utkal B-1 with extractable reserves of 147 Million Tons allotted by GOI forsteel projectII. Iron Ore Mine to be allotted by State Government as per MOU signed with the Govt. of

Orissa



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Future Growth DriversFuture Growth Drivers -- JharkhandJharkhand

Project ProfileProject Profile

PROJECT : Phase-I

6 MTPA Integrated Steel Plant& 1000 MW Captive Power Plant

LOCATION : Patratu, Jharkhand

PROPOSED FACILITIES

1. Blast Furnace : 6.0 MTPA2. Steel Making Facilities (BOF Route) : 6.0 MTPA3. Flat Products : 3.0 MTPA

4. Long Products : 3.0 MTPA5. Power Plant : 1000 MW

RESOURCESI. Two Coal Blocks, Jitpur with extractable reserves of 65 Million Tons & Amarkonda -

Murgadangal with extractable reserves of about 200 Million Tons allotted by GOI for2000 MW capacity CPP & 1000 MW IPP to be set up by group co. Gagan Power Ltd.II. Iron Ore Mine with estimated reserves of 70 Million Tons allotted by State

Government for steel project



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Future Growth DriversFuture Growth Drivers -- RaigarhRaigarh


PROJECT : Phase-I

Addition of 3 MTPA Integrated Steel Plant

& 600 MW Captive Power Plant

LOCATION : Raigarh, Chhattisgarh

PROPOSED FACILITIES

1. DRI (Gas based) : 2.0 MTPA2. Steel Making Facilities : 3.0 MTPA3. Medium Section Mill : 0.6 MTPA4. Power Plant : 540 MW

RESOURCES

I. Existing Coal Mines at Raigarh having extractable reserves of about 200 MillionTons for existing steel plant

II. Existing Iron Ore Mines in district Sundergarh, Orissa with extractable reserves ofabout 20 Million Tons

III. Prospecting license for Iron Ore over 1162 hectares area in Bailadila districtDantewada recommended by State Government to GOI for prior approval



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Future Growth DriversFuture Growth Drivers -- ElEl MutunMutun, Bolivia, Bolivia


Agreement with the Bolivian governmentapproved by the parliament

Estimated reserves of Iron Ore in area of exploitation - 20 Bi l lion tons

The Company proposes to set up the followingfacilities.

• Pelletization Plant - 10.00 Mil l ion MTPA

• Direct Reduced Iron - 6.00 Mi ll ion MTPA

• Steel Making Faci li ties - 1.81 Mi ll ion MTPA

• Pow er Plant - 450 MW The total investment proposed is $2.1 bill ion over

the next 8 years

Proposed financing at a debt-equity ratio of 60 :40

The revenues w ill start flow ing from the year2010



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Captive Power GenerationCaptive Power Generation

Jindal Steel & Power LimitedJindal Steel & Power Limited

Existing Capacity at Raigarh 340 MW Operational

Additional proposed Raigarh (135 MWx4) 540 MW by 2010-11

Proposed addition at Orissa (135 x 6) 810 MW by 2010-11

Proposed addition at Jharkhand 1000 MW by 2011-12

Total Proposed Capacity (between 2012-15) 2690 MW

Expected Date ofCommissioning



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JSPLJSPL’’ss Coal To Liquid ProjectCoal To Liquid Project

Government of India allotted Ramchandi Promotional Coal Block in theState of Orissa with estimated reserves of 1,500 Million MT

Production Capacity of 80,000 Barrels per day (4.0 MMTPA)

Technical tie-up with M/s Lurgi of Germany

Fixed Bed Dry Bottom Technology will be used

Total Project Cost : Rs. 42,000 Crores

The above project is aimed at enhancement of energy security by reducingdependence on imported Crude.

1000 MW O P Jindal Super Thermal Power Plant, Raigarh



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1000 MW O P Jindal Super Thermal Power Plant, Raigarh



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Installed Capacity of Top 5 CountriesInstalled Capacity of Top 5 Countries(In Thousand MW)(In Thousand MW)

Thermal Hydro Nuclear Others Total MW % of WorldGeneration Per CapitaCons. 2005-06 (KWH)

United States 689.5 79.4 98.7 17.4 884.9 25.22

9.64

6.75

13338

China 253 83 2.2 0 338 2180

Japan 168 22 46 0.7 237 8076

Russia 139.6 44.7 21.2 0.02 205 5.86 5642India 92.2 36.0 4.1 12.2 144.50 3.48 631



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Comparative per capita consumption of electricityComparative per capita consumption of electricity((KwhKwh))

0

2500

5000

7500

10000

OCCD

Countries

Middle East Latin

America

China Asia Africa India World

Average

8365

2980

1695 1802

646 563 612

2596

Source: Central Electricity Authority



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The Power Situation in IndiaThe Power Situation in India

•Capacity in 1947 : 1363 MW

•Capacity in 2008 : 144,000 MW

•Demand Rise : 10% p.a.•Present peak demand deficit : 12%



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Generation Capacity (May 2008)Generation Capacity (May 2008)

Total 144550 MW

Generation Capacity (MW)

92216

12194

36033

4120

64% (Thermal)

8% (Renewable)

25% (Hydro)

3% (Nuclear)



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Thermal (MW)

1202

76299

14716

(83% Coal)

(1% Diesel)

(16% Gas)

Thermal Installed Capacity till May 2008Thermal Installed Capacity till May 2008



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Capacity Addition Target DuringCapacity Addition Target During

XI Plan (2007XI Plan (2007--2012)2012)

Thermal : 59,693 MW (75.8%)

Nuclear : 3,380 MW (4.3%)

Hydro : 15,627 MW (19.9%)

Total : 78,700 MW (100.0%)



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1097

9340

660

11061

125 310 0435

0

2000

4000

6000

8000

10000

12000

Hydro Ther. Nec. Total

TargetAchievement

Generation Capacity Addition 2008Generation Capacity Addition 2008--0909

and Achievement till May 2008and Achievement till May 2008

Jindal Power Limited Subsidiary Company



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Jindal Power Limited - Subsidiary Company

Commissioning of 1000 MW Power PlantCommissioning of 1000 MW Power Plant

250 MW - Unit 1 : December 2007

250 MW - Unit 2 : April 2008

250 MW - Unit 3 : June 2008

250 MW - Unit 4 : September 2008

S li t F t f 1000 MW P j tSalient Feat res of 1000 MW Project



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Salient Features of 1000 MW ProjectSalient Features of 1000 MW Project First Mega Power Project in the Private Sector

JPL has been assigned ‘AA’ Rating by ICRA in the 1st year of Production

Salient FeaturesSalient Features



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Salient FeaturesSalient Features… … …… … …

Constructed 6.948 kms. crosscountry pipe conveyor for coaltransportation. This is the longestpipe conveyor in India

Constructed a Dam which wascompleted in a record time period of2 working seasons

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Salient FeaturesSalient Features………………

Operating largest coal mine inthe Indian private sector

Largest 6 Million Ton Capacity

Coal Washery in Indian Power Sector




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Salient FeaturesSalient Features………………

Constructed 258 km long 400 kV double circuit transmission line whichwas completed in the record time of 1.5 years

This 400 KV transmission line is the first line constructed without any

Joint Venture with Power grid

First private power plant which is connected to the CentralTransmission Utility (CTU, Power Grid)



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Financials at a GlanceFinancials at a Glance

Fin. Year 2007-08

Few Days Operation* Q1 Q2 Q3 Q4

Gross Generation

(Million units )125.3 962 1490 1951 1966 6369.0

PLF % 66% 59% 70% 88% 91% 79%

Net Sales (Rs Crores) 125.3 293.6 653.9 1160.7 1149.4 3257.5

PAT ( Rs Crores ) 19.4 41.3 314.7 574.6 651.3 1581.9

* For the Period 8th Dec '07 till 31st March '08

2008 -09

TotalParticulars

Financial Year 2008-09



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Brownfield Expansion Plant (4x600 MW) : 2400 MW

Status :

Order placed on BHEL in December 2008 for BTG Unit

Order Value on BHEL - Rs. 5040 Crores

Water approvals received

Land for main plant already acquired

Technical Consultant ‘Development Consultant Pvt. Ltd.’ (DCPL)appointed

SBI Capital Markets Ltd. appointed as advisor and syndicator

F G h D i



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Project Cost :

Project Cost : 12,800 Crores

Financing on 75 : 25 Debt Equity

Debt : Rs. 9,600 Crores

Equity : Rs. 3,200 Crores

Equity to be funded from internal accruals

Financial closure expected by December, 2009

H d PH d P



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Hydro PowerHydro Power

Two Joint Venture Agreements executed with Hydro Power DevelopmentCorporation of Arunachal Pradesh Limited (HPDCAPL) for development of4500 MW Hydro Projects in Arunachal Pradesh

Detailed Project Report (DPR) and infrastructure development to becompleted in 5 years

Setting up of these projects will take about 8 years after preparation of DPR

Estimated project cost of Etalin (4000 MW) is Rs. 21,820 Crores and Attunli(500 MW) is Rs. 4,172 Crores



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Jindal Petroleum LimitedJindal Petroleum Limited




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IntroductionIntroduction

Jindal Petroleum Ltd. is currently engaged in Oil & Gas Exploration

Awarded 4 Oil & Gas Exploration Blocks in Georgia in Jul./Aug. 2008

Awarded 1 Block in India under New Exploration Licensing Policy-

(NELP - VII) in Rajasthan

Development of Palmer Gas and Condensate Field in Bolivia in

progress




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Jindal Petroleum LimitedJ da et o eu ted

Planning for Exploration & Production of Oil & Gas inPlanning for Exploration & Production of Oil & Gas inGeorgiaGeorgia

Production Sharing Contract (PSC) for 4 Oil & Gas Exploration Blocks in

Georgia (Block No. - VIIA, IX, X & XIIIA) executed in January, 2009

Exploration activities commenced

Many blocks have large nos. of test wells done earlier showing oil

Looking forward to speedy Exploration of Oil & Gas in Georgia so as to be

able to contribute to Economic Development of Georgia




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Planning for Exploration & Production of Oil & Gas inPlanning for Exploration & Production of Oil & Gas inGeorgiaGeorgia

Block IXBlock X Block X

Photos of some of the test wells



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Jindal Steel & Power Ltd.

Corporate Social Responsibilities

undertaken by the company in the vicinity

of its steel plant and upcoming projects



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SAIL-HR Award for excellence in Human Resource Management, 2009

JSPL figures among Top-20 "BEST COMPANIES TO WORK FOR" as per a

survey by Business Today, January 2009

National Energy Conservation Awards 2001, 2002, 2003, 2004, 2005, 2007& 2008 in Integrated Steel Plants Category

One of the Ten Fastest Growing Large Size Companies (Dalal Street

Journal 2006)

2nd Most Investor Friendly Company, Business Today 2008

Golden Peacock National Quality Award, 2008

Golden Peacock Environment Management Award, 2008

Think Odisha Leadership Award in Corporate Social Responsibility, 2008 FICCI Annual Award in recognition of Corporate Initiatives in Sports, 2006

Greentech Environmental Excellence Award 2006 and 2003

Golden Peacock Award for CSR Initiatives, 2006

National Safety Award (Mines) 2004, 2005 and 2006

Some of the accolades that we have to our credit include;



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THANK YOUTHANK YOU

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Corporate Presentation, JSPL