Q3 FY17

Industry Update &

Key Performance
Highlights

14th February, 2017

 DISCLAIMER
This presentation may contain certain forward looking statements concerning JSPLs
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 its subsidiary undertakings or
any other invitation or inducement to engage in investment activities, neither shall this
presentation nor the fact of its 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.
 PRESENTATION OUTLINE
Q3 FY17
INDUSTRY BRIEF BACKGROUND OPERATIONAL FINANCIAL
OUTLOOK DEVELOPMENTS PERFORMANCE PERFORMANCE
 World Crude Steel Production recovered in CY16 (fig in MnT)

CY 15 CY 16

0.8 % 1628

1615
World

1.2 % 808

799
#1 China

0.3%
105.1
104.8
#2 Japan
7.4 % 96
89
#3 India
Source: WSA
 IIP exhibited a slight decline

Overall IIP Trend Manufacturing

7
5.7 6 5.5
6 5.3
Mining Sec Growth (y-o-y, %)

Manufacturing Growth (y-o-y, %)

5 5
4 4
3 2.0 2.1 3
2 1.1 2
0.7 0.7 0.9 0.9
1 0.1 1
0 -1.2
0
0.7
-1 -1 -0.3
-0.7
-2 -1.26 -1.5 -1.35 -2
-1.9
-3 -2.4 -2
-3 -2.4 -2.4
-2.8
-4 -3.1 -3.4

Mining Electricity
Electricity Sector's IIP
5.2 16 14.6

Electricity Sec Growth (y-o-y, %)

5
Mining Sec Growth (y-o-y, %)

6 4.7
3.9 14
4 2.9 11.3
12
1.2 1.4 1.3 9.6
2 0.8 10 8.3 8.9
0 8 6.6 6.3
-0.1 6 4.7
-2 -1.1 3.2
4 2.4
-4 -3.1 1.6
2 0.1 0.1
-6 -5.6 0
-8

Source: Ministry of Finance, RBI 5

 Indian Steel Scenario : (April-Dec 16)

In Million MT Apr-Dec'16 YoY

Production for sale 73.8 10.5%

Import 5.5 -37.4%

Export 4.9 57.8%

Consumption 61.5 3.3%

Crude Steel Production 72.2 8.5%

Source: JPC
 Indian real consumption grows by 3%

(Qty : MnT) FY 16 April- Dec'16

change change
Qty (y-o-y) Qty (y-o-y)

Crude Steel Production 89.8 0.9% 72.17 8.5 %

Finished Steel (Non Alloy+Alloy)

Import 11.7 25.7% 5.49 (37.4)%

Export 4.08 (27)% 4.98 58 %

Real Consumption (Demand) 80.5 4.6% 61.5 3.3 %

Source: JPC
 World Finished Steel Demand (CY 16 & CY 17): Major consumption pockets

A) China: Decline in Chinese steel demand softened by government

stimuli

Steel demand in China is projected to decline by -1.0% in 2016 and by

-2.0% in 2017.

B) Emerging Economies:
Steel demand in emerging and developing (excluding China)
economies is expected to expand by 4.0% in 2017.

C) Developed economies :
Steel demand in developed economies is projected to increase by
1.1% in 2017.

Source: WSA
 PRESENTATION OUTLINE
Q3 FY17
OUTLOOK
INDUSTRY BRIEF BACKGROUND OPERATIONAL FINANCIAL
DEVELOPMENTS PERFORMANCE PERFORMANCE
INDUSTRY UPDATE
STEEL SECTOR
 Domestic Semis and steel Intermediary price trend
Semis and Sponge (Pellet) Price Trend (Raipur)
Billet
Sponge (Pellet)
25100
Scrap (Mandi) 24700
24000 23800
23300

Billet 21800
21550 21550

19550 19700
19025 18900
18675 18500
18200
Scrap (80:20)
17500
17200 17000

15100

14150 14150
13500 13575
13250 13188
Pellet Sponge
12300

11200

April Aug Sept Oct Nov Dec Jan last week Latest

Source: Steel Mint 11

 Domestic Finished steel price trend
Flat Steel Price Trend (Delhi) 45000
43750
44000 43000
HRC
40500 42000
Plate 41500

38500 39750
37500
36500 37800
38325 Trade Flat Steel:
35000
- HRC & Plate prices continue to increase
35000
34500 35500 in domestic market due to RM cost push
33500
- HRC & Plate prices increased by 19-23%
April Aug Sept Oct Nov Dec Jan last week Latest (April to till date)

Long Steel Price Trend (Delhi) 29700

29100
28500
28200 Trade Long Steel:
28000

26900 27050
27900 - Post Aug 16 TMT & Wire Rod prices
25900
26800 26800
increased by 16-21% (April to till date) .
26500
24600 26125

25050 TMT

23900 24000 Wire Rod

22200
April Aug Sept Oct Nov Dec Jan last week Latest

Source: Steel Mint

 Domestic Iron Ore prices on the upswing
Iron Ore Lump Prices Iron Ore Fines Prices

5200 Odisha Lumps (10-30mm, Fe 62- 63%) Odisha Fines (0-10 mm, Fe 63%)
3000
4800
Chhattisgarh DR CLO (10-40mm, Fe 65.5%) Chhattisgarh Fines (0-10 mm, Fe 64%)
4800 4575
4500 2700
4300

Price in Rs/t (ex-mines)

4400 2546
4300
Price in Rs/t (ex-mines)

2400
4000 3840
4040 2243
3840 2100
3600 3840
3840
1960 1860
3130 1860
3200
1800 1800 1710
1660 1560 1760
2800 2900 1560 1660
2800 2650 1650 1460
2600 2700
1500 1600 1600
2500 2500 1560 1460
1525
2400 2400 2420 1430
22152180 2250 2300 1450
2070 1250
1200 1300 1300 1200
2000 1150
1960 1075
1050
1960
1600 900
Apr'15

Dec'15
May'15

Apr'16

Dec'16
Jun'15
July'15
Aug'15

Oct'15

Mar'16

May'16

Aug'16
Jun'16
July'16

Oct'16
Nov'15

Jan'16

Nov'16
Sep'15

Feb'16

Sep'16
Sep'16
Sep'15

Feb'16

Dec'16
May'15

Aug'15

Dec'15

May'16
Apr'15

Oct'15

Apr'16

Oct'16
Jun'15
July'15

Jan'16

Mar'16

Aug'16
Jun'16
July'16
Nov'15

Nov'16

Source: Steel Mint Odishas prices include royalty, Chhattisgarhs prices exclude royalty
 Domestic Ferro Alloy and other ore price firmed up:
Price Trend: Ferro Alloy
1,03,000 1,05,000
Ferro Chrome HC 60 % (Ex Jajpur) Since April 16 - till date:
92,000 90,000 90,000
Some benchmark prices follow the following trend:
80,000 Ferro Silicon : Up by 6%
Ferro Chrome : Up by 57%
62,000 Silico Mn : Up by 7%
57,250 Mn Ore : Up by 186%
Chrome Ore : Up by 221%

W1 April July '16 Oct '16 Nov '17 Dec '16 Jan '17 last Week Latest
'16

Price Trend: Ferro Alloy Price Trend: Cr & Mn Ore

65,000
63,500 Chrome Ore ( 52-54% OMC auction) 27,737 27,737
61,000
60,000 Mn Ore (32-34% lump) Ex-Barbil
59,000

55,000 55,500

Silico Mn ( Ex Durgapur) 15,750 15,750

14,750
10,152 10,15212,750
43417 8,649 8,649

6,500 6,500
5,500
W1 April July '16 Oct '16 Nov '17 Dec '16 Jan '17 last Week Latest W1 April '16 July '16 Oct '16 Nov '17 Dec '16 Jan '17 last Week Latest
'16

Source: Steel Mint

 International Iron Ore & Pellet Prices trend (CFR China - $/MT)

International Pellet Prices: International Iron Ore Fines (Fe 62%)

increased by 43% Increased by 71 %
(Oct16 to till date) (Oct 16 to till date)

119
113 112
111 110 110
109 107 108 107
105 104
100
97 98 98 96

90 91
88
85 93
83
87
82 83 83
81 81 81 81
78 79 79
77
73 73
71 70 Iron Ore CNF China
Pellets (65%) CFR China
59 59
57 57
55
9 Dec '16

23 Dec '16

29 Dec '16
02-Dec-16

19 Dec' 16
4 Oct'16

5 Nov'16

18 Nov'16

21 Nov'16

1 Feb '17

6 Feb '17
11 Oct'16

17 Oct'16

24 Oct'16

31 Oct'16

10 Jan '17

26 Jan '17

10 Feb '17
11 Nov'16

28 Nov'16

18 Jan'17

14th Feb '17

Source: Platts
 International Coal : Price Trend
Prime Hard Coking Coal ($/MT FOB Australia) Semi Hard Coking Coal ($/MT FOB Australia)

302 269
262 234
232 210
209
186 168
162 159 149
117 111
93 82

Apr-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 14th Feb Apr-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 14th Feb
'17 '17

Steam Coal RB1 ($/MT FOB S Africa)

91 From April 16 till date:
86
83 83 82
- Prime Hard Coking Coal: Up by $69/MT (FOB
Australia)
66 67
- Semi Hard Coking Coal : Up by $67/MT (FOB
Australia)
52
- Steam Coal RB1 Coal : Up by $30/MT (FOB S.
Africa
Apr-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 14th Feb
'17

Source: Platts, Argus

INDUSTRY UPDATE
POWER SECTOR
Installed Capacity in India (Dec 2016)

Installed Capacity (GW) in India Renewable Installed Capacity Portfolio

314.1 s
16%
Hydro
215.2 14%

Thermal
68%

50.0
43.1 Nuclear
5.8 2%

Thermal Nuclear Hydro Renewables Total

Installed Capacity (GW) Growth 314.1 Renewables (GW) Portfolio

298
272
245 Wind 28.7
224
200
161 174
148
Bio Mass
Solar 8.1 Small
7.9
Hydro 4.3

Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Dec'16

Source: CEA
Major Highlights (Dec 2016)

CIL Production in Million Tonnes Imported Coal as % of Total Requirement

1.1 % Increase Coking Coal-27MT
Non-Coking Coal- Apr-Dec16
102MT

377.77 A. Imported (MT) 129

373.45
B. Domestic (MT) 378

Apr-Dec'15 Apr-Dec'16 % Ratio - A/(A+B) 25 %

Electricity Generation in BUs Energy Deficit Peak Deficit

0.0%
-0.2%
-0.4%
-0.6%
5.2 % Increase
-0.6%
-0.8%
-1.4%
-1.7% -1.7%
872.9 -1.0%
-1.2%
-1.4%
830.1
-1.6%
-1.8%
Apr-Dec'15 Apr-Dec'16 Dec-15 Dec-16
Source: CEA, CIL
 PRESENTATION OUTLINE
Q3FY17

OUTLOOK INDUSTRY BRIEF BACKGROUND OPERATIONAL FINANCIAL

DEVELOPMENTS PERFORMANCE PERFORMANCE
 Business Segments
Power Mines & Global Construction
Steel Minerals Ventures Material &
Solution

Current Capacities Domestic & Global

IPP 3400 MW
2 MTPA Steel Cement
5.1 MTPA Steel* CPP 1634 MW 3.11 MTPA*
Mines Road solutions
Renewable 24 MW**
LGS
*Domestic
**Divestment Announced
 Steel Capacities across Life Cycle

Iron Making Liquid Steel Finished Steel

(6.75 MTPA) (7.10 MTPA) (6.55 MTPA)

DRI 3.12 MTPA in WRM 0.60 MTPA

Capacity
deail
RUBM 0.75 MTPA

BF 2.13 MTPA SMS 7.10 MTPA MLSM 0.60 MTPA

Plate Mill 2.20 MTPA

HBI 1.50 MTPA
BRM 2.4 MTPA

BRM in Angul 1.4* - Commissioning in FY17 Effective Finished Steel 7.95 MTPA
 Detailed plant wise capacities

Raigarh Angul Barbil Patratu

Oman JPL Mining
(Chhattisgarh) (Odisha) (Odisha) (Jharkhand)
BF 2.125 CGP
MTPA 225,000
DRI 1.32 Nm3/Hr SMS 2.0
MTPA WRM MTPA Iron Ore
SMS Capacity
DRI 1.8 in 0.60 3.11
3.6MTPA MTPA
deail MTPA MTPA
Plate Mill Pellet Tamnar
SMS 1.5 HBI 1.5
1.00 MTPA Plant 3400
MTPA MTPA
RUBM 0.75 9 MTPA MW
MTPA Coal
Plate Mill Rebar
MLSM 0.60 Overseas
1.2 MTPA Mill 1.0
MTPA BRM 1.4 6.20
MTPA
CPP 839 CPP 810 MTPA MTPA
MW MW

Power Hot Metal Liquid Steel Finished Steel

 Steel
Insights into few products
Indias first manufacturer of Parallel Flange Beams

0.75 MTPA Rail & Universal Beam

mill
Dual Hot Saws
Variable pitch for controlled
residual stress removal
Plates Making Steel Stronger

1.2 MTPA 5m wide Plate Mill in

Angul
Indias widest Plate Mill
Can roll up to 5m wide Plates
1.4 KM long shop
Indias largest Blast Furnace all set to Commission in March
Sinter Plant Angul Phase 1B
Coke Oven Angul Phase 1B
Prefabricated Steel Indias biggest & most versatile prefab facility

2 lakh MT per annum capacity

Power plant

High rise Buildings

Segments Served
Bridges

Stadiums / Airports

Industrial Buildings
 Construction Solutions Business Offerings

PLATES ROLLED SECTIONS TMT LGS/ MGO

RAW MATERIALS (PLATE MILL) (RUBM/MLSM)
COIL CEMENT PLANT EPS PLANT
(BAR MILL) (All Tech )

STRUCTURAL WELDMESH/
FINISHED PRODUCTS SPEEDFLOOR DRY WALLS JGRS EPS
STEEL CUT BEND

CONSTRUCTION SOLUTIONS
BUSINESS

APPLICATIONS HIGH RISE MULTI LEVEL ROAD ROADS &

STADIUMS AIRPORTS
STEEL BUILDINGS CAR PARKS BRIDGES PAVEMENTS
Vijayawada Airport : Inaugurated on 12th Jan 2017
Vijayawada Airport : (Interior)
Ready to Use Steel

Facilities located at Faridabad, Patratu, Angul and Raigarh

Products Advantages

Cost effective
Cut & Bend
Zero wastage

Stirrup Minimum storage

Reduced dependency on manpower

Cut Straight Simple and safe

Instant usability
Weldmesh
Faster completion of work
 JSPL - Power Capacities
Independent Power Projects (IPP)
Capacity Configurati
Project Fuel Status
(MW) on

Tamnar 1(a)* 1,000 Coal 4x250 MW Operational

Tamnar 2(a) 2,400 Coal 4x600 MW Operational

Satara (b)* 24 Wind 18x1.5 MW Operational

Captive power projects (within JSPL)

Raigarh

Tamnar Capacity
Angul Project Fuel Configuration Status
(MW)
Satara

DCPP, Raigarh 540 Coal 4x135 MW Operational

IPP CPP 2x25 MW & 40 MW

Coal & (Waste heat)
JSPL, Raigarh 284 waste 2x55 MW Operational
heat 3x25 MW
24 MW

Angul, Odisha 810 Coal 6 x135 MW Operational

One of the largest thermal portfolios in India

(a) Within JPL; (b) Within JSPL *Divestment announced
 JINDAL POWER LIMITED

96.43% subsidiary of JSPL

EUP -I EUP -II EUP -III

1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600)
 PPA Arrangements
Period Quantum
Project Buyer Type From To (MW)

Tamnar II
Tamil Nadu Long Term Feb-14 Sep-28 400
(Phase 1)

Tamnar II
Long Term Jun-16 May-41 200
(Phase 1)
KSEB
Tamnar II
Long Term Oct-17 Sep-42 150
(Phase 1)
After commercial
Tamnar II
Long Term operation of Unit and for 60
(Phase 1)
complete life of plant
Chhattisgarh
After commercial
Tamnar II
Long Term operation of Unit and for 60
(Phase 2)
complete life of plant

Over 30% of total capacity tied up *

* Out of 3400 MW (IPP)
 New PPA Opportunities

Buyer Type Quantum (MW)

UP Long Term 2800

Jharkhand Long Term 100

Bangladesh - BPDB Long Term 500

Railway - WR Medium Term 210

Railway - ER Medium Term 100

Railway Long Term 180

 Key Contractual Arrangements for JPL
Tamnar-I, 1,000 MW (EUP I)
Awaiting clarity on Tara
Coal Block
FSA In the interim, coal
sourced through market
purchase and e-auction
Bilateral/short term/
PPA
merchant
258km transmission line
Evacuation
from plant to national grid
Raw materials, transmission & PPAs in place for achieving higher PLF
Tamnar-II - 1,200 MW (EUP II) Tamnar-II - 1,200 MW (EUP III)
Long term linkage from Awaiting clarity on Gare
Mahanadi Coal Limited Palma IV/2 & 3 Coal mine
(MCL) and South Eastern Market purchase and
Coalfields Limited (SECL) e-auction
TNEB 400MW
CSEB 60MW
CSEB 60MW
KSEB 200MW
KSEB 150MW
Full Open access for 400MW
Open access to be finalised
TNEB PPA commenced from
against PPAs
Oct 2015
 Summary of International Operations

Shadeed, Oman
1.5 MT HBI , 2 MT SMS Plant &
1.4MTPA Rebar Mill an
Integrated Steel Plant

Mozambique,
Africa
Developing a 3 MTPA
coal mine in
Mozambiques coal-rich
Moatize region
Coal resources
estimated at 1.2 bn
tonnes including coking
coal

South Africa, Africa Australia

Acquired 82.04% controlling
JSPLs Kiepersol Colliery produces Anthracite
stake in Wollongong Coal
coal, sold domestically and internationally Plans
to ramp up capacity
 Holding structure for global operations

Jindal Steel & Power Ltd

Listed Operating Entity in India

Jindal Steel & Power (Mauritius) Ltd

Holding company for overseas business

Oman Australia South Africa Mozambique

2 MTPA Steel plant Coking Coal Anthracite Coal Thermal/ Coking Coal
 PRESENTATION OUTLINE
Q3 FY17

OUTLOOK INDUSTRY BRIEF BACKGROUND OPERATIONAL FINANCIAL

DEVELOPMENTS PERFORMANCE PERFORMANCE
Performance highlights

JSPLs Consolidated Steel Sales for Q3FY17 were 1.16MnT up 18% YoY (0.99MnT in Q3FY16)

JSPLs Consolidated Steel Production for Q3FY17 was 1.15MnT up 7% YoY (1.07MnT in
Q3FY16)

Indias largest Blast Furnace, all set to commission at JSPL Angul by March 2017

Obtained Mining Lease for Chilhati limestone mine, having a cumulative reserve of
21 MnT of lime stone

Barbil records 298% growth in Market sale of pellets (0.71 million tonnes in Q3 FY17
vs 0.18 million tonnes in Q3FY16)

JPL increased its EBITDA by 66% Q-o-Q and Y-o-Y in Q3FY17

Australia and Mozambique mines ramping up steadily

 Consolidated Steel Production

(Figures in Million Tonnes)

1.6 1.32
1.19 1.16
1.07 1.15
1.4
1.2 0.35
0.35 0.28 0.31
1 0.29
0.8
0.6 0.97
0.78 0.84 0.88 0.84
0.4
0.2
0
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17

Jindal Shadeed JSPL

 Consolidated Steel Sales Volumes

(Figures in Million Tonnes)

1.4
1.6
1.11 1.08 1.16
1.4 0.99
0.4
1.2
0.33 0.27 0.32
1 0.25
0.8
0.6 1
0.74 0.78 0.81 0.84
0.4
0.2
0
Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17

Jindal Shadeed JSPL

Key Customers & Adding
 PRESENTATION OUTLINE
Q3 FY17

OUTLOOK INDUSTRY BRIEF BACKGROUND OPERATIONAL FINANCIAL

DEVELOPMENTS PERFORMANCE PERFORMANCE

Analyst Presentation
Standalone Q3 FY 17 Snapshot of Key Financials
(Figures in Rs. Crores)

Consolidated Q3 FY 17 Snapshot of Key Financials

(Figures in Rs. Crores)

- - 48
JPL Snapshot of Key Financials
(Figures in Rs. Crores)

- - 49
 Future focus

Completion of Angul Phase 1B

Sweat the Assets Achieve 100% Capacity utilization

Improvement of NSR and EBITDA.

Reduce Debt

Secure PPA for entire JPL Capacity

Focus on Value Added Products

Foray in Building & Rail infra segment; Defence segment

For any information please contact: -

Mr. Nishant Baranwal Head, Investor Relations

Tel : +91 11-41462198
Mobile:+91 8800690255
Email: - nishant.baranwal@jindalsteel.com
THANK YOU