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Copyright © 2010 Jindal Steel & Power Ltd.
Corporate PresentationMay 2011
Disclaimer
Certain statements in the presentations and, if applicable, the subsequent question and answer session and
discussions concerning our future growth prospects, are forward looking statements which involve a number of risks,
uncertainties and other factors that may cause our actual results, performance or achievements to differ materially
from future results, performance or achievements expressed or implied by such forward-looking statements. The
risks and uncertainties relating to these statements include, but are not limited to, general political, social and
economic conditions in India, Bolivia, and elsewhere, accidents, natural disasters or outbreaks of disease,
government policies regarding the steel ,power and diamond industry(ies), including industrial licensing,
environmental regulations, safety regulations, import restrictions and duties, excise duties and sales taxes, our
ability to successfully implement our strategy, our growth and expansion plans and technological changes,
increasing competition in, and the conditions of the global and Indian steel , power and diamond industry, changes
in laws and regulations that apply to the Indian and global steel, power and diamond industry, significant
movements in the prices of key materials, terms on which we finance our working capital and capital and product
requirements affecting our company and our industry and other development expenditure requirements, general
economic conditions factors beyond our control.
2
Jindal Steel & Power /
Jindal Power / Jindal
Shadeed
Steel
3 MTPA
Power
Generation
1,783 MW
Pellet Plant
5MTPA
Iron Ore &
Coal Mining
15 MTPA
Hot Briquetted
Iron
1.5 MTPA
Corporate Snapshot
FY 2010 - 11
Revenue : USD 2.9 Bn
Cash Profit : USD 1.13 Bn
3
4
Jindal Steel & Power Limited
Steel Plant, & 810 MW Power Plant at Angul, Orissa
6 MTPA
Inv. USD 5.4 Bn
Steel Plant, Patratu, Jharkhand
6 MTPA
Inv. USD 4.4 Bn
Steel Plant
Bolivia
2 MTPA
Inv. USD 2.1 Bn
Thermal Power, Chhattisgarh
2,400 MW
Inv. USD 2.9 Bn
Thermal Power, Jharkhand
1,980 MW
Inv. USD 2.4 Bn
Hydro Power, Arunachal Pradesh 6,100 MW
Inv. USD 8.1 Bn
Steel Plant, Raigarh, Chhattisgarh
3 MTPA
Inv. USD 2.6 Bn
Coal To Liquid
80,000 Barrels per day
Inv. USD 8.0 Bn
Current Expansion Plans
Steel business overview
Power business overview
Financial overview
Growth drivers
Sustainability Initiatives
5
Indian Steel Story
India „s share in World steel production was 2% in 1995. Current share 5%
With GDP expected to grow over 8-9%, Steel consumption is expected to grow over 10%
Huge demand coming from Power, Road and Infrastructure sector
Steel Production in India expected to go up tp 200 MTPA by 2020 from current 70 MTPA
In 11th plan GOI has a target of $500 Bn investment in Infrastructure (9% of GDP)
Steel consumption for this level of investment is about 145 Mn T
In 12th plan GOI has plans of $1,000 Bn investment in Infrastructure (estd. at 10% of GDP)
Steel consumption for this level of investment is over 350 Mn T
Currently India imports about 8 MTPA of steel
Giving a cushion to absorb additional supply in the immediate future
6
Jindal Steel & Power Limited (“JSPL”) is
a leading player in steel, power and
mining
Perseverance, firm commitment towards
all stakeholders and the community at
large coupled with an enterprising spirit
have been the driving force behind the
company's growth over the last decade
JSPL has consistently tapped new
opportunities by increasing production
capacity, diversifying investments, and
leveraging its core capabilities to
venture into new businesses
■ Iron ore mine 3.00 MTPA
■ Coal mine 12.00 MTPA
■ Pellet Plant 5.0 MTPA
■ Sponge Iron (coal based)
■ Sponge Iron (Gas based- Oman)
1.37 MTPA
1.50 MTPA
■ Hot Metal (Pig Iron) 1.65 MTPA
■ Total Steel 3.00 MTPA
Rails, Beams & Structurals 0.75 MTPA
Plates & Coils
Medium Section Mill
1.00 MTPA
0.60 MTPA
Slabs, Rounds, Blooms & Billets,
Wire Rods0.65 MTPA
■ Total Captive Power Plant 759 MW
■ Wind Power 24 MW
■ Jindal Power Limited 1,000 MW
Core operational capacities
JSPL – A young and dynamic company
7
(a) Captive Power Plant supplies power to all facilities
JSPL integration
Sale
FINES
Iron Ore from
Mines
Coal from
Mines
Coal Washery
BF
Coking
Coal
Pig Iron
POWER
PLANT(a) CSEB/OTHERS
EAF
RAIL &
UNIVERSAL BEAM
MILL
ROTARY
KILNS
Rails Structurals
Washery
Rejects
Sponge
Iron
Char/Flu Gases
Rounds/
Blooms/
Slabs/
Billets
Sale
Sale
Sale
Sale
Sale
SINTER
PLANT
PLATE MILL
PLATES &
COILS
Sinter
COKE
OVEN
COKE
Sale
Wire Rod &
Rebar
Pellets
Sale
Pelletization
plant
Sale
8
Hot Rolled Plates upto 3.5 Mtr. Billets Parallel Flange Beams
Channels Columns Hot Rolled Coils
JSPL Product Range
9
Beam Blank 120 Mtr. Long Track Rails Power
Rounds Fabricated Beams
JSPL Product Range (contd.)
10
JSPL Captive power plants
759MW
945MWAddition
1,708MW
FY12
Angul CPP
675 MW
(5x135 MW)
Existing
11
Tamnar Coal
Mine CPP
270 MW
(2x135 MW)
Steel business overview
Power business overview
Financial overview
Growth drivers
Sustainability Initiatives
12
India Power Story
13
Installed Capacity (Mar’ 11) Top 5 States (Power Demand)
Source: CEA
Source: CEA
A+ rated SEB‟s have doubled in FY 10
Top 5 states account for 50% of energy demand
Maharashtra & UP will likely drive future latent
demand due to large energy requirement &
deficit; either due to power cuts or non-availability
of power
Total Installed Capacity 173, 626 MW
Thermal Power 112,825 MW
Hydro Power 37,567 MW
Renewable 18,454 MW
Nuclear Power Reactors 4,780 MW
5 420 2116 18
25 2030 30
33295 6
10 20
FY07 FY08 FY09 FY10
C rating B rating A rating A+ rating
Source: PFC
State Utilities (Categorization by PFC)
Location
Fuel
JPL Operational Project – Tamnar I (4x250MW)
Tamnar, Raigarh, Chhattisgarh
(4 x 250 MW)
Captive coal mines
Power
Evacuation
258 Km Captive transmission
line connected to National Grid
14
FY10
Installed
capacity
(MW)(a)
1,000 1,000
Gross units
generated
(MU)(a)8,148
8,596
PLF93.0%
98.1%
Auxiliary
consumption
(%)
8.9%8.6%
FY 11
Financials FY 10 FY11
EBITDA (%) 90% 88%
PAT (%) 59% 56%
15
TAMNAR I PROJECT (OP Jindal super thermal power plant)
Main Plant 258 km transmission line from Raigarh to Raipur
6.9 km cross country pipe conveyor belt for coal transportation Captive Coal Mine
Steel business overview
Power business overview
Financial overview
Growth drivers
Sustainability Initiatives
16
0
500
1000
1500
2000
2500
3000
200320042005200620072008200920102011
0
100
200
300
400
500
600
700
800
900
200320042005200620072008200920102011
Year
Revenue
Revenues
CAGR 47 %
Year
Net P
rofit
Net Profit
CAGR 60%
Consolidated, USD in Million
Consistent Performance
17
Growth Trajectory: Quarterly net profits
33 trailing quarters (consolidated, INR Crores)
60 60 50 5880
117 122 124 124147 150 145
126151 153 157
190 203
250277
319
405
444
765
900 899
988
808
874
963 957
894
951
1,001
Dec-02
Mar-03
Jun-03
Sep-03
Dec-03
Mar-04
Jun-04
Sep-04
Dec-04
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
18
Consolidated financials at a glance
Note: EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07
Note: EPS adjusted to reflect a bonus issue of 5:1
* Net worth and Book value not stated as these are results for part of the year
(Rupees in Crores)
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Times
INCOME STATEMENT
Gross Turnover 1,403 2,467 2,905 3,948 6,260 11,694 11,679 13,998 9.9
Net Turnover 1,272 2,271 2,617 3,548 5,538 10,913 11,151 13,111 10.3
Net Profit After Tax 305 515 572 703 1,251 3,007 3,634 3,804 12.4
Cash Profit 434 765 858 1,174 1,810 4,193 4,759 5,115 11.7
BALANCE SHEET
Gross Fixed Assets 1,966 2,875 4,389 5,866 10,679 14,927 21,109 29,327 14.9
Net worth 853 1,317 1,837 2,475 3,722 7,021 10,386 14,135 16.5
Borrowings 1,026 1,495 2,745 3,507 6,996 8,113 8,605 13,987 13.6
Equity 15 15 15 15 15 15 93 93 -
SIGNIFICANT RATIOS
Operating Margin (%) 40% 40% 40% 41% 41% 48% 53% 49% -
Net Profit to Sales (%) 24% 23% 22% 20% 23% 28% 33% 29% -
Return on Net Worth (%) 36% 39% 31% 28% 34% 43% 35% 27% -
Long Term Debt Equity
Ratio 1.09 1.11 1.20 1.07 1.74 1.03 0.59 0.70 -
EPS (INR/Share) (a) (b) 3.34 5.58 6.31 7.64 13.54 32.44 39.05 40.75 -
19
Steel business overview
Power business overview
Financial overview
Growth drivers
Sustainability Initiatives
20
Project CapacityExpected date of
CommissioningFinancial closure
Plate Mill 1.5 MTPA March, 2012 Achieved
DRI 2.0 MTPA March, 2012 Achieved
Power 810 MW April, 2011 - March, 2012 Achieved
Steel melting shop 1.6 MTPA September, 2012 Achieved
Facilities under implementation (Flat Products)
Resources
Coal mine, estimated reserves 228 MT, allotted. Mining expected to start from October 2011
Iron Ore mine, to be allotted as per MoU with the Govt. of Odisha
Coal gasification &
gas based DRIBlast furnace
Steel making
facilities
Flat products (Plates
and HR coils) Power Plant
4.0 MTPA 3.0 MTPA 6.0 MTPA 6.0 MTPA 810 MW
6 MTPA integrated steel plant & captive power plant at Angul, Odisha
JSPL’s greenfield expansions
21
Project CapacityExpected date of
commissioning
Financial closure
Steel Making
(Wire Rod and Rebars)
Power Plant
3.0 MTPA
100 MW
December, 2014 Under process
Other Major Facilities
Coke Oven, Blast Furnace, Sinter Plant
and Steel Melting Shop
Facilities under implementation (Long products)
Resources
Two coal mines, combined estimated reserves of 320 MT, allotted
Iron Ore mine, with estimated reserves of 80 MT, allotted
Blast furnace Steel making facilities
(BOF Route)Flat products Long products
6.0 MTPA 6.0 MTPA 3.0 MTPA 3.0 MTPA
6 MTPA integrated steel plant & captive power plant at Patratu, Jharkhand
JSPL’s greenfield expansions (continued)
22
Project Capacity
Expected date of
commissioning Financial closure
Power Plant 270 MW Sept, 2011 Achieved
Facilities under implementation
Coal gasification &
gas based DRI Steel making facilities Power plant
2.0 MTPA 3.0 MTPA 540 MW*
3 MTPA integrated steel plant & captive power plant at Raigarh, Chhatisgarh
JSPL’s Brownfield expansions (continued)
* Out of 540 MW, 270 MW has been commissioned in the months of September and November 2010
23
Expansion plans of Jindal Power LimitedOverview of power projects
Name (Size) Type
Operational Project (1000 MW)
Tamnar I (1,000 MW) Thermal
Under Implementation Projects (10,480 MW)
Tamnar II (2,400 MW) Thermal
Dumka (1,320 MW) Thermal
Godda (660 MW) Thermal
Hydro (6,100) Hydro
Under Planning Projects (3,960 MW)
Jharkand (2,640 MW) Thermal
Angul (1,320 MW) Thermal
24
Capacity build-up timeline of JPL
Cumulative capacity build-up (for projects under implementation)(a)
1,0001,600
3,400
5,380 5,3806,180
6,980 6,980
11,480
FY14 FY15 FY16 FY17 FY18 FY19 FY20Existing
500MW
Attunli
660 MW
Godda
1,320MW
Dumka
4,000MW
Etalin
800MW +
800MW
Subansiri
Middle
Three units
of Tamnar II
(1,800MW)
Operational
Tamnar I
FY13
First unit of
Tamar II
(600MW)
(a) Projects under planning (3,960MW) have not been considered for the above timeline25
Project Capacity
Projected
investment
(INR m)
CTL Plant 80,000 bbl / day 320,000
Coal mining 50 MTPA 25,000
Power Plant 1350 MW 75,500
Total 420,500
Facilities under implementation
Coal to Liquid (CTL) Project
Objective
■ To enhance energy security of the country
■ Reduce dependence on import of crude oil/
petroleum products
■ Maximize Diesel production (60-70 % Diesel)
■ Establish environment friendly CTL Project with
a strategic fit to Indian Coal (High Ash)
26
■ CTL capacity represents about 10% of India‟s current crude production
■ Compliant with Euro VI norms
Salient Points
IndiaOman
Bolivia
South
Africa
Mozambique
IndonesiaCongo
Global Footprint
Georgia
28
Oman
• JSPL acquired Shadeed Iron & Steel LLC. In July 2010
• Capacity of 1.6 mtpa DRI module (Midrex) plant
• Total Capital Expenditure of about 525 million USD
• Gas will be supplied by government at 1 $ per MMBTU, for 20 years
• Earned PAT of $3.6 Mn in 1st Quarter of operation (Jan – Mar 2011)
• Expansions planned
– Phase 1 1.5 MTPA Steel Making Product: Billet
– Phase 2 2.0 MTPA Rebar and Section Mills
Shadeed Iron & Steel LLC.
29
Bolivia
Estimated reserves of Iron Ore - 20 Billion tons
Investment of USD 2.1 Bn over a period of 8 years
Unit Capacity
Pellet Plant 10 mtpa
DRI Plant (Natural Gas based) 6 mtpa
Steel Capacity 1.7 mtpa
30
AFRICA
• Operating the Kiepersol Colliery near Piet Retief in Mpumalanga
• 20 MT recoverable reserves; Annual production capacity of 1 mtpa
South Africa
Mozambique• Mining Agreement signed in Jan. 2011.
• Coal resources estimated at 700 millions MT including coking coal
• Estimated Investment -USD 200 million in 5 years
• Mine expected to be operational by March 2012
Congo• Mining 8000 – 10000 carats per month of diamonds in Tshikapa
• Exploration for Kimberlites in progress in Banalia and Jacopunda
• Coal mine at Tete province (Western Mozambique) covering 25000 Ha
31
Indonesia
• Coal Mining License obtained in Dec 09.
• Total concession area of 51 sq km in Barito Regency in Kalimantan
• Coal deposits est. over 250 MT for open cast operation
• Production to start in FY 2011-12.
Resource pool to fuel JSPL’s growth
32
Mine State
Geological Reserve
(Mn MT) Purpose
Domestic Iron Ore
Tensa Orissa 20 Steel
Jiraldaburu Jharkand 80 Steel
Bailadila Chhattisgarh 100 Steel
Total 200
Overseas Iron Ore
El Mutun Bolivia 20 billion MT Steel
Domestic Coal
Gare IV / 1 & IV/6 Chhattisgarh 300 Steel & Power
Gare IV / 2 & 3 (JPL) Chhattisgarh 270 Power
Jitpur & Amarkonda Jharkand 305 Power
Utkal B 1 Orissa 224 Steel & Power
Urtan North M.P. 55 Steel & Power
Ramchandi (CTL) Orissa 1500 Coal to Liquid & Power
Total 2634
Overseas Coal
South Africa 50
Mozambique 1200
Indonesia 500
Total 1,750
Steel business overview
Power business overview
Financial overview
Growth drivers
Sustainability Initiatives
33
Awards
Ranked 1st as wealth creator in India over five years period - Dalal Street Investors Journal,
February, 2010
Features in Forbes Fab 50 list, 2009 & 2010
“Innovating Sustainability” - CSR Excellence Award by ASSOCHAM - 2010
Ranked 1131 by Forbes in 2009-10 (as against 1793 in FY09) in Global 2000 (World‟s biggest
listed companies list)
Achievements
“2nd largest value creator in the World” – BCG, “Threading the Needle” – 2010
based on Total Shareholder return (2005-2009) and 1st largest value creator in
Global Mining sector
Manufacturer of longest rail of 121 meter long in the world
Largest coal based sponge iron facility in the world
First Company to produce power from waste heat recovery boiler from sponge iron
Part of Nifty 50 and Sensex 30
Awards and Achievements
34
Sustainability Initiatives and Awards
Initiatives
Action Location
R&R Colonies All
Fly Ash brick plant Angul, Odisha
O.P. Jindal Institute of Technology & Skills Angul, Odisha and Patratu, Jharkand
Medical Camps Local villages in Odisha, Jharkand, Chhattisgarh
O.P. Jindal Hospital & Research Centre Raigarh, Chhattisgarh
O.P. Jindal School Raigarh, Chhattisgarh
Modernization of High School Patratu, Jharkand
O.P. Jindal Industrial Park Raigarh, Chhattisgarh
Awards
“Innovating Sustainability” – CSR Excellence Award by ASSOCHAM - 2010
Think Odisha Leadership Award in Corporate Social Responsibility – 2009, 2008
FICCI Award in recognition of Corporate Initiatives in sports
National Energy Conservation Awards - 2007, 2005, 2004, 2003, 2002, 2001
35
Copyright © 2010 Jindal Steel & Power Ltd.
Thank you