JSL

19th May, 2021 BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department, E x c h a n g e P l a z a , 5 t h 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 andra (E), Dalal Street, Fort, Mumbai – 400 001 Mumbai-400051 Ph. 022 - 2272 3121, 2037, 2041, Ph. 022 -2659 8237, 8238, 8347, 8348 3719, 2039, 2272 2061 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com hsurati@nse.co.in Security Code No.: 532508 Security Code No. : JSL Sub.: Intimation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Revised Earnings presentation. Dear Sir, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the revised Earnings presentation of Jindal Stainless Limited ("the Company"), for the quarter and year ended 31st March, 2021. The same is also being uploaded on the website of the Company- www.jslstainless.com. Please take the above information on record. Thanking You. Encl: A/a JINDAL STAINLESS LTD and JINDAL STAINLESS (HISAR) LTD Q4 & FY21 Earnings Presentation May 19, 2021 Disclaimer This presentation and the accompanying slides (the “Presentation”), which has been prepared by Jindal Stainless Limited/Jindal Stainless (Hisar) Limited (referred to “respective company (ies)”) for this joint earning presentation, are purely for information purposes only and is not, and is not intended to be, an offer, or solicitation of offer, or invitation or recommendation or advise to buy or sell or deal with any securities of the respective companies, and shall not constitute an offer, solicitation or invitation or recommendation or advise to buy or sell or deal with any securities of the respective companies in any jurisdiction in which such offer, solicitation or invitation or recommendation or advise is unlawful or in contravention of applicable laws. No part, or all, of this Presentation shall be used or form the basis of, or be relied on or referred to in connection with, any contract or investment decision in relation to any securities of the respective companies. This Presentation is strictly informative and relating to the financial conditions, internal functioning, day to day operations, future events and projections etc. of the Company and this presentation shall not be used or relied upon or referred to in whole or in part, for any purpose whatsoever. The information in this Presentation is being provided by the respective company and is subject to change without any notice or liability. This Presentation has been prepared by the respective company based on information and data which it considers reliable, but it makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, veracity, fairness, integrity, sufficiency and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and exhaustive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This Presentation contains statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this Presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties, contingencies and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The respective companies assume no obligations or responsibility to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. You unconditionally and irrevocable acknowledge and undertake that you will be solely responsible for your own assessment of the market, the market position, the business and financial condition of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the respective companies . All the risks, liabilities or consequences arising out of or consequent to the use of or reliance on or reference to this Presentation and/or acting on the basis of the analysis/views formed by you, shall be solely borne by you. This Presentation speaks as of the date mentioned herein. Neither the delivery of this Presentation nor any further discussions of the respective companies with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the respective company since that date. The Merged Entity pro-forma financials have been prepared assuming the approval of the Scheme by respective authorities and are merely indicative in nature. 2 COVID-19 relief efforts by Jindal Stainless  Jindal Stainless consistently supplying Liquid Medical Oxygen (LMO) of ~9.5 MT from JSHL Hisar plant and 40 MT from its JSL Jajpur plant each day to 50+ medical facilities in Haryana, Delhi-NCR , Odisha, Andhra Pradesh, and other states to serve the country’s need for LMO  The Jindal Stainless operated O.P.Jindal Modern School is converted into a 500- bedded COVID hospital with dedicated oxygen supply on all beds directly from the JSHL Hisar plant. The facility was operationalized on May 16 in a record time of two weeks  The Company is bearing the total cost of the vaccination drive. Under this initiative over 35,000 employees, contractual workers, retainers, and their immediate family members will be benefitted across the country.  The Company partnered with the local Municipal Corporations in both Hisar, Haryana and Jajpur, Odisha, for the following initiatives: 1. Awareness creation in the community about the importance of social distancing 2. Distribution of sanitisers and masks in colonies 3. Sanitisation of the roads and public spaces in the city using our Fire Tenders 4. Distribution of rations and cooked food packets 4 JSL: Key Financials Highlights – Q4 & FY21 Net Revenue from operations EBITDA 1,396 12,320 11,679 1,175 521 2,904 3,452 3,810 241 445 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: 10% YoY: 31% (5%) Shift (%) QoQ: 17% YoY: 116% 19% PAT 428 265 153 152 -22 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: 75% YoY: NA 180% 5 Note: Standalone financials; All figures in Rs. crore unless stated otherwise JSL: Key Operational Update – Q4 & FY21 Sales Volume (MT) 916 825 s d n a s u o 221 251 255 h T Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: 2% YoY: 15% (10%) Sales Composition – Q4 FY21 Sales Composition – FY21 Export Export 16% 19% Domestic Domestic 81% 84% 6 Note: Standalone financials JSL: Q4 & FY21 Financial and Operational Discussions (Standalone)  Revenue for Q4 & FY21 stood at Rs. 3,810 crore & Rs. 11,679 crore respectively oDespite a challenging business environment, sales volume for FY21 stood at 824,825 MT  EBITDA for Q4 & FY21 stood at Rs. 521 crore & Rs. 1,396 crore respectively oStrong recovery in domestic demand segments like Auto, and a healthy revival in Pipe & Tube segment, along with Railways & allied infrastructure, including the Metro segment oIncreasing raw material prices resulted in positive inventory valuation  PAT for Q4 & FY21 reported at Rs. 265crore and Rs. 428 crore respectively oWith continuous and accelerated deleveraging company managed to reduce its total external debt by Rs. 906 crore during FY21, which stood at Rs. 849 crore as on March 31, 2021 oFinance cost during Q4 & FY21 reduced by 22% & 18% to Rs. 92 crore & Rs. 464 crore respectively 7 JSHL: Key Financials Highlights – Q4 & FY21 Net Revenue from operations EBITDA 8,340 8,400 1,003 862 2,030 2,822 2,758 351 364 174 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: (2%) YoY: 36% 1% Shift (%) QoQ: 4% YoY: 110% 16% PAT 478 320 226 190 94 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: 19% YoY: 141% 49% 8 Note: Standalone financials; All figures in Rs. crore unless stated otherwise JSHL: Key Operational Update – Q4 & FY21 Sales Volume (MT) s d 600 577 n a s u o h 149 191 182 T Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Shift (%) QoQ: (5%) YoY: 23% (4%) Sales Composition – Q4 FY21 Sales Composition – FY21 Export Export 8% 8% Domestic Domestic 92% 92% 9 Note: Standalone financials JSHL: Q4 & FY21 Financial and Operational Discussions (Standalone)  Q4 & FY21 revenue stood at Rs. 2,758 crore and Rs. 8,400 crore respectively oQ4 sales volume stood at 182,474 tonnes, registering 23% increase Y-o-Y  EBITDA for Q4 & FY21 stood at Rs. 364 crore and Rs.1,003 crore respectively oSales of JSHL’s Specialty Products Division (SPD) grew by 8% Y-o-Y during Q3FY21  PAT for Q4 & FY21 reported at Rs. 226 crore and Rs. 478 crore respectively oWith focus on deleveraging company managed to reduce its total debt by Rs. 643 crore during FY21, which stood at Rs. 1,376 crore as on March 31, 2021 oFinance cost during Q4 & FY21 reduced by 32% & 22% to Rs.42 crore & Rs.236 crore respectively 10 Key Raw Materials – Price Trend Nickel (USD/MT) 17,573 15,930 15,930 15,450 14,210 12,723 12,215 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY21 Q4FY21 Note: Average quarterly prices; Source: LME Fe Chrome (Rs/MT) 94,675 65,583 68,775 61,800 60,950 63,875 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 11 Note: Average quarterly prices; Source: Steel Mint Management Comment “Our agile business strategy throughout the year, despite the pandemic induced challenges, has helped Jindal Commenting on the Stainless deliver a strong performance. A steady demand in performance, Mr. the domestic market across segments during the fourth Abhyuday Jindal, quarter has helped growth in sales volume and revenue. Managing Director, We’re now looking forward to the creation of a level Jindal Stainless Ltd. and Jindal playing field by the Government. By far, we have made Stainless (Hisar) good progress on the merger front and markets have Ltd. said: responded well to it. In the post-pandemic age, we look forward to increased government procurement as one of the key growth drivers. Indian industries have proved in this hour of need, that domestic manufacturing not only helps generate employment, but can also support country with oxygen and health infrastructure.” 12 JSL: Debt Position & Key Ratios Borrowings (Standalone) As on As on As on (Rs. crore) Mar. 2021 Mar.2020 Mar.2019 Long term debt 1530 2,357 2,050 Net Debt/Equity Inter corporate loan from 1,050 900 900 1.7 related party# 1.4 OCRPS* - - 695 0.9 Total Long term debt 2,580 3,257 3,645 Short term borrowing 319 398 473 Total Debt 2,899 3,655 4,118 Cash & Investments 89 44 14 FY19 FY20 FY21 Net Debt 2,810 3,610 4,104 Long Term Debt Breakup: Net Debt/EBITDA -INR Debt 2,580 2,981 3,139 -Foreign Currency Debt - 276 506 3.6 3.1 Note : *Optionally Convertible Redeemable Preference Shares 2.0 # Include the accrued interest Borrowings (Subsidiaries) As on As on As on (Rs. crore) Mar. 2021 Mar.2020 Mar.2019 FY19 FY20 FY21 Long-Term Debt 60 - - Short-Term Debt 195 248 270 Total 255 248 270 13 JSHL: Debt Position & Key Ratios Borrowings (Standalone) As on March As on March As on March (Rs. crore) 2021 2020 2019 Net Debt/Equity Long term debt 1,250 1,929 2,109 1.4 Short term borrowing (less 1.1 127 90 72 than 12 months) 0.6 Total Debt 1,376 2,019 2,181 Cash & Investments 8 19 19 Net Debt 1,368 2,000 2,162 FY19 FY20 FY21 Long Term Debt Breakup: -INR Debt 1250 1,637 1,929 2,109 -Foreign Currency Debt - - - Net Debt/EBITDA 2.4 2.3 Borrowings (Subsidiaries) As on March As on March As on March 1.4 (Rs. crore) 2021 2020 2019 Long-Term Debt 41 33 52 Short-Term Debt 64 129 134 FY19 FY20 FY21 Total 104 162 186 14 14 Merger Overview: Complementing strengths JSL JSHL Jajpur, Odisha Hisar, Haryana Key Plant Location Raw Material Hub, Port Proximity Key Consumption Hub Proximity 0.8 MTPA with Specialized Product 1.1 MTPA Integrated facility along with Division (SPD) including Blade Steel, backward integration (Ferro Chrome and Precision Strips and Coin Blank Stainless Steel (SS) capacities captive power plant) La test European ‘State-of-the-art’ Pioneer SS manufacturing in India. te chnology. India’s largest SS manufacturer. World's largest producer of SS strips for Producing globally competitive SS products razor blades and India's largest producer Infrastructure, Technology and R&D of coin blanks Readily leveragable infrastructure for cost efficient brownfield expansion (800+ acre land) Service Center/Finishing Lines International Domestic High volume, wider width offerings. Actively catering to SPD and Niche SS Offerings Actively catering to volume oriented products sectors like Railways, Auto and Infrastructure Jindal Stainless Limited (‘JSL’) , Jindal Stainless (Hisar) Limited (‘JSHL’) 15 Merged Entity Pro-forma Financials SS conglomerate with 1.9 mtpa capacity Improved performance in Last 9 months* Revenue : 17,233 Revenue 19,175 17% : 14,690 EBITDA 2,408 : Interest 609 FY20 FY21 : EBITDA Net Debt 26,40098 2,291 1,508 52% : Net Debt/ 0.5 Equity : Net Debt/ 1.3 EBITDA FY20 FY21 * Last 9 months includes Q2, Q3 and Q4 of FY20 and FY21 Note: Standalone Combined entity Pro forma figures as on March 31st, 2021 in Rs. crore Strong global footprint & extensive pan India reach with >120 product grades and robust financial positioning 16 JSL, JSHL Merger: Progressing Well • April 1, 2020 APPOINTED DATE • Board approval of the scheme of arrangement MAJOR EVENTS • Stock Exchanges/SEBI approval • Shareholders and Creditors approvals EXPECTED COMPLETION IN H2 FY22 • NCLT approval • Implementation of Scheme • Received Stock Exchanges/SEBI approval in 1st week of March’21, ahead of the expected time • First motion application filed before the NCLT on March 17, 2021 17 Proposed Structure Post Merger Public Promoter 42.9% 57.1% ● Merger of JSHL into JSL JSL JSHL ● Swap ratio 1:1.95 99.9% PT Jindal Stainless Indonesia 65% Subsidiaries /Investment ● Merger of JSL Lifestyle (mobility business), JSL Iberjindal S.L, Media and JSCMS into JSL Spain JSL Lifestyle (mobility), JSL ● All subsidiaries of JSHL moves in JSL Media & JSCMS 100% Jindal Stainless Steelways Ltd. 73.4% Jindal Lifestyle Ltd. (Non Mobility) Subsidiaries / Investments Entities Amalgamating in JSL Subsidiary 18 Shareholding on fully diluted basis JSL: Abridged P&L Statement (Standalone) YoY QoQ YoY Particular (Rs. crore) Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 Change (%) Change (%) Change (%) Revenue from operations 3,810 2,904 31% 3,452 10% 11,679 12,320 (5%) Total Expenditure 3,288 2,662 24% 3,007 9% 10,283 11,145 (8%) EBITDA 521 241 116% 445 17% 1,396 1175 19% EBITDA/ton 20,438 10,917 87% 17,745 15% 16,923 12,827 32% EBITDA margin (%) 13.7% 8.3% 537 bps 12.9% 81 bps 12.0% 9.5% 242 bps Other Income 12 11 13% 10 27% 42 37 14% Finance Cost 92 143 (36%) 117 (22%) 464 567 (18%) Depreciation 90 99 (9%) 93 (3%) 373 409 (9%) Exceptional gain/loss 54 (48) NA 7 NA 99 8 1096% PBT 406 (38) NA 251 NA 700 244 187% Tax 141 (16) NA 99 NA 273 91 198% PAT 265 (22) NA 152 NA 428 153 180% PAT margin (%) 7.0% NA NA 4.4% NA 3.7% 1.2% 242 bps EPS (Diluted) in INR 5.4 (0.5) NA 3.0 NA 8.7 3.2 174% 19 JSL: Abridged P&L Statement (Consolidated) YoY QoQ YoY Q4 Particular (Rs. crore) Q4 FY20 Q3 FY21 FY21 FY20 FY21 Change (%) Change (%) Change (%) Revenue from operations 3,914 3,094 26% 3,585 9% 12,188 12,951 (6%) Total Expenditure 3,371 2,873 17% 3,111 8% 10,764 11,811 (9%) EBITDA 542 222 145% 473 15% 1,424 1139 25% EBITDA margin (%) 13.9% 7.2% 670 (bps) 13.2% 66 (bps) 11.7% 8.8% 289 bps Other Income 13 13 (4%) 7 71% 41 40 3% Finance Cost 97 148 (35%) 121 (20%) 480 586 (18%) Depreciation 97 104 (7%) 101 (4%) 403 425 (5%) Exceptional gain/loss 53 (51) NA 8 NA 102 4 2207% Share of profit of investments 19 (5) NA 6 NA 5 (8) NA gain/(loss) PBT 434 (73) NA 274 NA 690 165 317% Tax 141 (7) NA 103 NA 270 93 192% PAT 293 (67) NA 170 NA 419 74 468% PAT margin (%) 7.5% NA NA 4.7% NA 3.4% 0.6% 287 bps EPS (Diluted) in INR 5.9 -1 NA 3.4 NA 8.5 1.5 465% 20 JSHL: Abridged P&L Statement (Standalone) YoY YoY Particular (Rs. crore) Q4 FY21 Q4 FY20 FY21 FY20 Change (%) Change (%) Net revenue from operations 2,758 2,030 36% 8,400 8,340 1% Total Expenditure 2,394 1,857 29% 7,397 7,478 -1% EBITDA 364 174 110% 1,003 862 16% EBITDA/ton 19,952 11,669 71% 17,387 14,359 21% EBITDA margin (%) 13.2% 8.6% 464 bps 11.9% 10.3% 160 bps Other Income 24 21 14% 95 98 -3% Finance Cost 42 68 (39%) 236 304 -22% Depreciation 65 70 (7%) 266 273 -3% Exceptional gain/(loss) 16 -5 NA 40 19 114% PBT 298 51 480% 636 402 58% Tax 72 -42 NA 159 81 95% PAT 226 94 141% 478 320 49% PAT margin (%) 8.2% 4.6% 357 bps 5.69% 3.84% 185 bps EPS (Diluted) in INR 9.6 4.0 141% 20.2 13.6 49% 19 JSHL: Abridged P&L Statement (Consolidated) YoY YoY Particular (Rs. crore) Q4 FY21 Q4 FY20 FY21 FY20 Change (%) Change (%) Net revenue from operations 3,103 2,246 38% 9,400 9,379 0% Total Expenditure 2,697 2,064 31% 8,273 8,444 -2% EBITDA 406 182 122% 1,127 935 21% EBITDA margin (%) 13.1% 8.1% 495 bps 12.0% 10.0% 202 bps Other Income 26 52 (50%) 107 133 -19% Finance Cost 45 71 (37%) 251 323 -22% Depreciation 71 76 (7%) 290 295 -1% Exceptional gain/(loss) 17 -4 NA 41 20 106% PBT 432 68 535% 880 497 77% Tax 82 -40 NA 184 96 92% PAT 351 108 224% 696 401 74% PAT margin (%) 11.3% 4.8% 648 bps 7.40% 4.27% 313 bps EPS (Diluted) in INR 14.8 4.5 232% 29.4 16.7 77% 20 Shareholding Pattern JSL JSHL Floating Stock (%) Floating Stock (%) Retail & FII FII Others Retail & 20.7% Promoters Other 13.2% 11.4% Other Others 68.1% Promoters 17.6% 31.9% 42.3% 57.7% DII DII 7.3% 4.0% 22 Note – Data as on 31st March 2021 Contact Us Jindal Stainless Ltd.: Jindal Stainless Ltd. (JSL) is amongst the leading stainless steel manufacturing companies in the world and India's largest stainless steel manufacturer. The Company operates an Goutam Chakraborty / Shreya Sharma integrated stainless steel plant at Jajpur, Odisha. The complex Jindal Stainless Ltd has a total stainless steel capacity of 1.1 million tonnes per Tel: +91 11 2618 8345 annum. E mail: Jindal Stainless (Hisar) Ltd.: goutam.chakraborty@jindalstainless.com Jindal Stainless (Hisar) Ltd. (JSHL) is the largest specialty shreya.sharma@jindalstainless.com stainless steel producer in India with a diversified value-added product portfolio. The company operates an integrated stainless steel plant at Hisar, Haryana. JSHL has a total melting capacity of 0.8 million tonnes per annum. 23