JINDALSTEL

May 16, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, E x c h a n g e P l a z a , 5 th F l o o r , 1st Floor, New Trading Ring, P l o t N o . C / 1 , G B l o c k Rotunda Building, P J Towers, B a n d r a - K u r l a C o m p l e x , B a ndra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 corp.relations@bseindia.com cmlist@nse.co.in Scrip Code: 532286 Symbol: JINDALSTEL Dear Sir/ Madam, Subject: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 – Investor Presentation Please find enclosed herewith presentation on Key performance highlights for the 4th quarter ended on March 31, 2023, of the Financial Year 2022-23. We have uploaded the same on the website of the Company at www.jindalsteelpower.com. This is for your information and records. Thanking you. Yours faithfully, For Jindal Steel & Power Limited Anoop Singh Juneja Company Secretary & Compliance Officer Encl.: as above Jindal Steel & Power Limited Corporate Office: Jindal Centre, 12 Bhikaiji Cama Place, New Delhi 110 066 CIN: L27105HR1979PLC009913 T: +91 11 4146 2000 F: +91 11 2616 1271 W: www.jindalsteelpower.com E: jsplinfo@jindalsteel.com Registered Office: O. P. Jindal Marg, Hisar, 125 005, Haryana Jindal Steel & Power Limited 4QFY23 & FY23 Earnings Presentation 16th May 2023 Safe Harbour Statement This presentation may contain certain forward looking statements concerning steel sector, economy and JSP’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 JSP 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. Estimates regarding economy, steel & power sector, company and related areas are purely indicative and could change with market conditions and host of other factors. Jindal Steel & Power 2 Building a nation of our dreams OVER 3 DECADES OF EXCELLENCE JSP is focused towards building world-class capabilities to make India self-reliant and a global economic powerhouse 3 Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results JSP at a Glance Growth Scaling up world-class, Innovative, value-added products High performance, integrated steel production to support India’s infrastructure customer-centric culture Focussed capacity creation Strong Net Debt/EBITDA at 0.7x Expansion programme to Targeting Net Debt / EBITDA boost FCF < 1.50x across commodity Balance Sheet cycle Sustainability World's first and largest coal 200 km eco-friendly Positively impacting gasification plant for steel- slurry pipeline 2.5 million lives Driven making Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results World Economic Outlook Global Inflation (%) Global GDP Growth Rate (%) CY22 CY23 (E) CY24 (E) CY22 CY23 (E) CY24 (E) +7% -45% e -13% t a d -13% -39% -10% p -37% U la +7% +75% +73% 6.8 9.2 -44% -27% r o 6.3 -34% 8.4 t c e S -18% -31% -77% 5.2 5.9 8.0 -49% -9% 6.7 d n a o 3.4 2.8 3.0 -24% 3.5 3.0 4.5 5.6 3.7 4.5 5.3 +16% 4.9 4.4 r c 2.1 2.9 a M 1.6 1.4 2.3 1.9 2.2 2.0 1.1 0.8 World US Eurozone China India World US Eurozone China India Global PMI Feb-23 Mar-23 Apr-23 57 • Estimated growth rate for CY22 was 0.2% below the forecasted rate. 56 55 The global growth forecast reduced by 0.1% for both CY23 and CY24 by IMF 54 53 52 53 • The banking system In US & Eurozone continues to remain under 52 pressure with 3 banks announcing bankruptcy in the US recently and a 50 50 50 49 49 49 forced takeover of Credit Suisse by UBS 49 48 47 4747 • Core Inflation remains high in major economies barring China, though, 47 46 46 there is a reduction in headline inflation 4545 US CAN GER UK FRA RUS CHI IND Jindal Steel & Power 7 India Steel Scenario • Indian Crude Steel Production Indian Finished Steel Consumption During the year, imposition of export duty led to a 64% reduction in FG exports, overall Fig in Million Tonnes +5% Fig in Million Tonnes +12% e t steelexportsweredownby55% a d p 126.3 110.4 U 120.3 • However, domestic demand fuelled by la 98.2 r government infrastructure demand lead to a o t c +9% strong13%yoygrowth e S d +2% n a +5% +6% • India’s Monetary policy & Govt initiatives o r supporting domestic demand, localisation c a M 32.5 31.5 33.0 27.1 28.0 29.8 andimportsubstitution. • Imports increased by 45% in FY23 as domestic demand remains better amidst Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 weakglobaleconomicconditions India Steel Exports India Steel Imports • ShareofChinaincreasedfrom18%inFY22to +45% -55% Fig in Million Tonnes Fig in Million Tonnes 23% during FY23 reflecting a slowdown in demand in China and a robust demand 7.0 18.4 scenario in India. Exports to China were down99%inFY23 +59% 4.8 • JKT continues to dominate India’s import -12% -40% 8.3 marketwitha66%shareintotalimports 2.3 2.0 +77% • India lost 5mt export opportunity in FY23 to 3.9 1.3 2.3 countries like China, Nepal, Belgium, UAE, 1.3 Turkey Indonesia, and Sri Lanka for factors like impositionof export duty, the slowdown Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 in the export market and country-specific issues Exports/import data includes semis Source: JPC Jindal Steel & Power 8 Key Steel and RM Prices Trend India HRC vs Rebar Domestic Pellet prices - up 19% qoq Fig in `/tonnes Fig in `/tonnes e 76,478 t a • China’s reopening resulted d 73,677 p U in an uptick in steel la 73,454 61,596 r o demand and consequently t c 60,106 e S 11,292 prices d 9,963 n 56,612 a o • However, overproduction r c a in China with lower M Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 demand led to a correction HRC (INR) Rebar (INR) HRC (China Export) (USD) Pellet in prices • In the domestic market Coking Coal: Premium HCC CFR India up 21% qoq Iron Ore fines up 40% and lumps up 14% qoq both flat and long steel Fig in USD/tonnes Fig in `/tonnes prices have risen on the 8,890 8,390 back of strong domestic 500 366 demand 5,700 5,890 • Raw materials prices moved in response to increased steel production Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 remained elevated Iron One Fine (0-10 mm) - 62 Fe Iron One Lumps (5-18 mm) - 63 Fe Source: :Steelmint Jindal Steel & Power 9 Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results Integrated Value Chain World-class Assets Mining Iron Making Liquid Steel Finished Steel (10.42 MTPA) (9.60 MTPA) (6.65 MTPA) e t a d p Iron-ore: Coal: U Direct Reduce Iron (DRI) 3.12 MTPA Steel Melting Shop (SMS) 9.60 MTPA Wire Rod Mill (WRM) 0.60 MTPA s s e n Tensa3.11 MTPA Utkal-C 3.37 MTPA Rail Mill 0.75 MTPA is Kasia7.5 MTPA Utkal-B1 & B2 8 MTPA u B Blast Furnace (BF) 7.30 MTPA Beam & Structure Mill (BSM) 0.70 MTPA Gare PalmaIV/6 4 MTPA Mozambique 5 MTPA Plate Mill 2.20 MTPA South Africa 1.2 MTPA Bar Rod Mill (BRM) 2.40 MTPA Australia 1.2 MTPA Raigarh Angul Barbil Patratu (Chhattisgarh) (Odisha) (Odisha) (Jharkhand) CGP225,000 Nm3/Hr Pellet Plant WRM0.60 MTPA BF 3.05 MTPA BF4.25 MTPA 9 MTPA DRI1.32 MTPA BRM1.0 MTPA DRI1.8 MTPA SMS 3.6MTPA SMS6 MTPA Plate Mill 1.00 MTPA BRM1.4 MTPA Rail Mill0.75 MTPA Plate Mill1.2 MTPA BSM0.70 MTPA CPP824 MW CPP810 MW CPP-1050 MW# Power Hot Metal Liquid Steel Finished Steel • CMDPA for all three Coal Mines was signed on August 17, 2022 • (#) Acquired 1050MW thermal power plant under construction in slump sale under IBC Jindal Steel & Power 11 Focused Capacity Expansion Scaling-up for Market Leadership Capex Spend breakup Crude Steel Capacity e t a d (` in Crs) (in MTPA) p U s 34% 15.9 s e n 12.9 is u B 9.6 8.6 6.3 Angul Phase II ~`24,000 Cr 3.3 Angul Phase I 5.0 6.0 6.0 6.0 Raigarh 66% 3.6 3.6 3.6 3.6 FY 21 FY 22 FY 24(P) FY 25(P) Margin Expansion Volume Expansion Growth capex - total outlay of ~` 24,000 crore Pellet Capacity through FY 2026-27 (` in Crs) (in MTPA) 21 6448 5600 5600 2789 300 600 3 5 6 0 0 0 0 9 9 12.0 Angul Phase II 2,789 6,448 5,300 5,000 3,100 Barbil 9.0 9.0 9.0 FY22 (A) FY23(A) FY24 (P) FY25 (P) FY26-27 (P) Angul Expansion 1050 MW CPP FY 22 FY 23(A) FY 24(P) Jindal Steel & Power 12 Focused Capacity Expansion Doubling Capacity at Angul by FY25 EXPANSION PLANS TO BOOST VOLUMES & EARNINGS Angul Phase-II : Timeline e FINISHED STEEL CAPACITY t a d Expected p FY22 FY23 FY24 FY25 U COD Past (FY11) s s e n is u Angul Pellet Plant #1: 6MTPA 1QFY24 25% 25% BRM B BSM 3.9 Margin HSM Phase #1: 3MTPA 2QFY24 MTPA RAIL MILL 15% Expansion: 25% WRM ₹8,100Cr. AngulPellet Plant #2: 6MTPA 2QFY24 19% PLATES Present Slurry Pipeline 2QFY24 BRM 33% Oxygen plant, Coke oven , RMHS 2QFY24 36% BSM 6.65 RAIL MILL HSM Phase #2 Expand MTPA 2QFY24 WRM to 5.5 MTPA 9% PLATES Capacity 11% 11% Blast Furnace #2: 4.25 MTPA 3QFY24 Expansion: Future (FY25) ₹15,900Cr. AngulBOF #2 : 3.3 MTPA 3QFY24 BRM 16% BSM CPP:1050 MW * 2QFY25 4% 15.15 5% RAIL MILL MTPA 4% WRM Angul EAF #2 : 3 MTPA 4QFY25 56% 15% PLATES HSM+TSCR TSCR : 3 MTPA 4QFY25 | DRI-Direct Reduced Iron | BF-Blast Furnace | WRM-Wire rod mill | BSM-Beam & structure mill | BRM-Bar rod mill (rebar) | HSM-Hot Strip Mill | DRI #2: 2.7 MTPA 4QFY25 TSCR –Thin Slab Caster & Rolling | * Acquired 1050MW thermal power plant under construction in slump sale under IBC. Jindal Steel & Power 13 Diversified Products & Customer Partnerships Innovating to Meet ‘Significant Unmet Needs’ of Customers Initiatives Customer group Result Largest domestic supplier of quenched Yellow goods and Import substitution e & tempered plates for applications that Construction equipment Value added exports under t a d p withstand severe impact and abrasion Make in India U s s e n is u 60E1 1175 HT rails suitable for High-speed corridors, bullet Import substitution B Critical for infrastructure trains and heavy haul routes high-speed & high axle load application. development in India of Indian Railways Head Hardened 1080 HH Rails & Asymmetric rails for Critical Railway application. Fire Resistant Steel: Used for high-temperature Import substitution JSP has received India’s first BIS or fire-prone areas This will increase the usage of certification to manufacture Fire- can withstand temperatures Steel in Commercial & Resistant Structural Steel up to 600 degrees Celsius for residential buildings a max. duration of 3 hours. Special profiles such as triple grouser Excavator and mining Import substitution track shoe equipment Sole producer in India 14 14 Jindal Steel & Power Diversified Products & Customer Partnerships Enhancing Brand Equity and Consumer Connect Title Sponsorfor IPL 2023 Cricket Live on Star Sports e t a d p U Jindal Panther Cricket Live breaks all s s e n past viewership recordsthis season is u B - 300 million reach on TV in just 3 Engagement of Channel partners at weeks. Cricket Live on live TV - 46% growth in TVR vs 2022. Onboarded Hardik Pandaya as Brand Associate Sponsor for IPL 2023 on Jio Ambassador for Panther Cinema: Platinum sponsorship of Indian TVC campaign “Speed, Strength, Super League’s Odisha FC Our TVC has over 223 Cr impressions on Flexibility” featuring Hardik Pandya the Jio Cinema application till 8th May’23 showcases our high product quality Reach • 7.4 + million views on • Presenting Partner for ICC Women’s Cricket World Cup 2023 • Significant traction on social media with launch of digital bytes with • Presenting Partner for FIH Men’s Hockey Hardik Pandya promoting panther World Cup 2023 TMT Rebars 15 Strong Balance Sheet Strengthening Fundamentals to Drive Sustainable Growth e t a Consolidated Performance d p U s s e Net Debt (` in Crs) Net Debt/EBITDA (x) Debt/Equity (x) n is u B -82% -85% -74% 4.65 4.57 1.23 1.15 39,137 35,918 0.92 22,146 1.53 0.35 0.32 8,876 6,953 0.70 0.57 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Jindal Steel & Power 16 Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results Empowering our Communities s e v it a it in I la ic o S HEALTH & NUTRITION EDUCATION SKILL EDUCATION RURAL INFRASTRUCTURE SOCIAL INCLUSION VATSALYAaims to reduce Infant YASHASVIaims to educate on O.P. JINDAL COMMUNITY COLLEGES • Construction and renovation JINDAL PRAYAS CENTRE OF EXCELLENCE Mortality Rate and Maternal Mortality professional, technical & skill- are open-access college established of 12+kms roads in FY 2022- provides state-of-art facilities for holistic Rate based courses for women and at Angul, Punjipanthra, and Patratu 23 and 250+ kms road care and nourishment for Benefitted 978women and children in girls from an underprivileged that impart skills to rural and • Electrification of more than 50 • 200+abandoned and impoverished Q4 and 32452 women and children in FY background underprivileged youths in 14 various villages so far children 2022-23. 5 lakh+ women & children • 5630girls and women trades • Construction of culverts and JINDAL SHOWS ELDERLY CARE AND benefitted so far. enrolled in more than 350 major bridges WELLNESS CENTER • Contributed 1.5 lakh+ youths to educational institutes across Centre-based nourishment, KISHORI EXPRESS addresses adolescent national skill pool and 2000+ 10 states during FY 2022-23 PROJECT AASHIANA aims to clothing, physical, spiritual, mental health, anaemiaamong adolescent girls. trainers and assessors provide financial assistance to and rehabilitation facilities to old age Benefitted 7356adolescent girls in Q4 ASHA THE HOPE is a program for LIGHTHOUSE empowers and homeless people for building persons and 29000+ adolescent girls in FY 2022- the rehabilitation and educates young boys and girls in a houses for their families • 500+ senior citizens are provided 23. (3.2 lakh+ girls benefitted so far). empowerment of children with participative, inclusive, and • 529homeless people from nourishment care in FY 2022-23 PM’S TB MUKT BHARAT special needs and differently- expressive manner 13 Indian states are benefitted Under Ni-KshayPoshanYojnaof NTEP abled persons. 396children in FY 2022-23. NUTRITION SUPPORT TO DESTITUTE AND • 1000+youth from rural, semi- 1030TB patients in Q4 3000+ TB enrolled in FY 2022-23 ABANDONED CHILDREN, WOMEN AND rural background are imparted patients are continuously supported • Special education for 5000+ ELDERLY industry, market and with monthly nutrition differently-abled children 5000+ underprivileged children, women, employability-specific skills BLOOD DONATION orphans and destitute, leprosy patients, Under this initiative,1193units of blood slum dwellers, and differently abled children collected in FY 2022-23 are supported with hot cooked food, dry ration. Jindal Steel & Power 18 Awards & Recognitions s e National CSR Award, by Best Social Impact Award v it a it Ministry of Corporate Affairs, during COVID-19 by World in Sustainability Federation I la GoI(announced in Aug 22) ic o S • CSR in Aspirational Best Women Districts/Difficult Terrains in Empowerment Initiative by Eastern India Interview Times • Contribution in National Times Business Award for Sustainable Rural Health Priority Areas and support to Care by Times of India differently-abled CSR Journal Excellence FICCI CSR Award 2022 for the Award 2022, for "Education fight against COVID-19 & Skill Development: Special Education Golden Peacock Award2022 for Programme, "Asha The Corporate Social Responsibility Hope”. by the Institute of Directors Odisha CSR Excellence Award 2022 by Odisha CSR Forum Jindal Steel & Power 19 Company Snapshot Macro and Sectoral Update Business Update Social Initiatives 4QFY23 & FY23 Results 4QFY23 & FY23 Highlights - Consolidated Gross revenue Adjusted EBITDA** PAT Net Debt Net Debt to EBITDA t lu 4QFY23 4QFY23 4QFY23 4QFY23 4QFY23 (LTM) s e R 3 2 Y F ₹15,781 Cr ₹2,240 Cr ₹466 Cr ₹6,953 Cr 0.7x & 3 2 Y F Q 4 3QFY23– ₹14,452 Cr 3QFY23 - ₹2,296** Cr 3QFY23– ₹518 Cr 3QFY23 ₹7,090 Cr 3QFY23– 0.7x Gross revenue Adjusted EBITDA** PAT Net Debt Net Debt to EBITDA FY23 FY23 FY23 FY23 FY23 ₹60,505 Cr ₹9,700 Cr ₹3,193 Cr ₹6,953 Cr 0.7x FY22– ₹56,841Cr FY22 - ₹15,241** Cr FY22– ₹8,248 Cr FY22 - ₹8,876 Cr FY22– 0.6x ** *Adjusted for one-off FX loss of INR 53 Cr in 4QFY23 & Fxgain of INR82Cr in 3QFY23, INR 171Cr in 4QFY22, INR 235 Cr in FY23 & INR 272Cr in FY22 Jindal Steel & Power 21 4QFY23 & FY23 Highlights - Standalone Steel Production Steel Sales Gross revenue Adjusted EBITDA** PAT t lu 4QFY23 4QFY23 4QFY23 4QFY23 4QFY23 s e R 3 2 Y F 22..0022 mmtt 2.03 mt ₹₹1155,,448800 CCrr ₹2,178Cr ₹789 Cr & 3 2 Y F Q 4 3QFY23– 2.06 mt 3QFY23 – 1.90 mt 3QFY23– ₹13,831 Cr 3QFY23 - ₹2,163Cr 3QFY23– (₹4,512 Cr) Steel Production Steel Sales Gross revenue Adjusted EBITDA** PAT FY23 FY23 FY23 FY23 FY23 7.89 mt 7.68 mt ₹58,970 Cr ₹8,562 Cr ₹2,427Cr FY22– 8.01 mt FY22 – 7.64 mt FY22– ₹55,184 Cr FY22 - ₹14,765 Cr FY22– ₹8,283Cr ** Adjusted for one-off FX loss of INR 38 Cr in 4QFY23 & Fxgain of INR82Cr in 3QFY23, INR 171Cr in 4QFY22, INR 971 Cr in FY23 & INR 272Cr in FY22 Jindal Steel & Power 22 Net Debt and EBITDA bridge (4QFY23) Consolidated Net Debt Movement (QoQ) (` in Crs) t lu s e R 3 2 Y F & 3 2 Y F Q 4 Standalone Adjusted EBITDA Movement (QoQ) (` in Crs) Jindal Steel & Power 23 Financial Performance - Standalone t lu Rs Crore Quarterly performance Annual performance s e R 3 2 Particulars 4QFY23 3QFY23 4QFY22 FY23 FY22 Y F & 3 2 Gross Revenue* 15,480 13,831 15,579 58,970 55,184 Y F Q 4 Net Revenue 13,392 11,832 13,831 51,180 49,431 Adjusted EBITDA** 2,178 2,163 2,655 8,591 14,765 Depreciation + Amortization 538 544 551 2,166 2,232 Finance Cost(net) 365 343 295 1,286 1,415 PBT (before Exceptional) 1,248 1,366 2,009 6,130 11,492 Exceptional Gain/(loss) (146) (7,253) (324) (3,258) (324) Reported PAT /(Loss) 789 (4,512) 1,198 2,427 8,283 *Incl. GST (goods and service tax) ** Adjusted for one-off FX loss of INR 38 Cr in 4QFY23, Fx Gain in INR 82Cr in 3QFY23, INR 171 Cr in 4QFY22, INR 971Cr in FY23 & INR 272Cr in FY22 Jindal Steel & Power 24 Financial Performance - Consolidated t lu Rs Crore Quarterly performance Annual performance s e R 3 2 Particulars 4QFY23 3QFY23 4QFY22 FY23 FY22 Y F & 3 2 Gross Revenue* 15,781 14,452 16,089 60,505 56,841 Y F Q 4 Net Revenue 13,692 12,452 14,339 52,711 51,086 Adjusted EBITDA** 2,240 2,296 2,899 9,700 15,241 Depreciation + Amortization 873 608 272 2,691 2,097 Finance Cost(net) 371 346 373 1,446 1,888 PBT (before Exceptional) 959 1,441 2,428 5,855 11,579 Exceptional Gain/(loss) (153) (378) (406) (1,369) (406) Reported PAT /(Loss) 466 518 1,527 3,193 8,248 *Incl. GST (goods and service tax) ** Adjusted for one-off FX loss of INR 53 Cr in 4QFY23, Fx Gain in INR 82Cr in 3QFY23, INR 171 Cr in 4QFY22, INR 235Cr in FY23 & INR 272Cr in FY22 Jindal Steel & Power 25