#1JSW Steel JSW Steel Limited Q1 FY 2020-21 Results Presentation July 24, 2020 BETTER EVERYDAY#2Key highlights - Q1 FY21 Revenue from operations: 11,782 crore Operating EBITDA : 1,341 crore Consolidated performance Net Profit/(Loss): (582) crore Net Debt to Equity: 1.54x and Net Debt to EBITDA : 5.74x JSW Despite disruptions in logistics and supply chain, the company operated at 66% average utilization vs 46% for domestic steel industry Operational performance ✓ Production from Karnataka captive iron ore mines at 1.05 mnt during the quarter Commenced mining operations and dispatches at Odisha mines ✓ Other highlights Recognized as "Sustainability Champion (2019)" by World Steel Association, 2nd Year in a row Karnataka Mining Lease for 3 new mines to be signed soon JSW Steel 2#3Agenda Business Environment Operational Performance Financial Performance JSW Steel JSW Forward Guidance & Projects Update 3#4606 -6 -12 -18 -24 -30 -4.9% 5.4% World AMES US -8.0% 4.8% Eurozone CY 20 Global economy GDP growth Forecasts (% YoY) CY21 -8.0% 4.5% -10.2% 6.0% -5.8% 2.4% Index of Industrial Production (%YoY) Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 5.9% 4.5% US Euro Japan EMDES Area India China Jun-19 Sep-19 China Dec-19 Mar-20 Jun-20 Japan 6.0% 1.0% 8.2% JSW ■ IMF revises CY20 Global GDP to contract by 4.9%, with downside risks, amidst higher-than-usual degree of uncertainty Global growth expected to rebound and increase by 5.4% in CY21 on the back of swift policy measures Recent PMI and IP prints of the US, EU and Japan reflect improving business and consumer sentiments from the recent slump, which bodes well for a gradual economic recovery In China, Q2 GDP of 3.2% reflects economic growth is gaining momentum. Recovery in investment and services during recent months has been stronger than anticipated ■ Synchronised monetary and fiscal policy measures have limited the impact of economic fall out in the near term, accommodative monetary stance likely to aid economic recovery Possible re-emergence of infections inducing localised lockdowns pose risks to the outlook JSW Steel Targeted and synchronised policy measures to aid gradual global recovery Source: IMF (June 2020),Eurostat, METI Japan, Federal Reserve, NBS China#52019 2020 (f) Global steel Steel Demand (mt) -6.4% -113 1,767 +9 1,654 1.0% 907 917 -122 -14.2% 859 737 82222. 100 Jun-17 Dec-17 JSW China Steel Production and Export* (mt) 8.00 China Crude Steel Production (LHS) Exports (RHS) 6.00 Jun-18 Dec-18 China World World ex-China HRC prices US$/t 1,200 N.America ExW China FOB N.Europe ExW Black Sea FOB Raw Material Price Trend HCC Premium LV ($/mt) (RHS) 150 1,000 Iron Ore 62% Fe ($/mt) (LHS) 300 800 100 200 600 50 50 100 400 200 0 Jun-17 0 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jul-20 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jul-20 JSW Steel Source: WSA, Bloomberg, Platts, SRO (June "20) Supply side cuts (ex-China) and improving steel prices bode well for global steel spreads *China published Export figure for Jan '20 and Feb '20 combined at 7.81 Mnt. The number has been equally distributed over Jan and Feb in the chart Jun-19 Dec-19 5 Jun-20 4.00 2.00#6Durables 160 140 120 100 80 60 40 20 0 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19 Jul-19 Dec-19 May-20 Total Vehicle Production vs. IIP IIP (YoY) (Ihs) 10% 0% Indian economy IIP Use Based (Consumer) Non-Durables Total Vehicle Production Quarterly( '000s) (rhs) 9,000 JSW Economic activities picking up across the board, reflecting improved business sentiment on the back of easing of lockdown restrictions Large pockets of activity/industries are heading towards gradual stabilization, albeit the localized lockdown driven by the resurgence of COVID-19 cases remains a key risk Rural economy holding up well, aided by limited pandemic impact (vs urban areas), good monsoon, and stimulus measures focused on increasing rural income and consumption Lower crude oil price, favorable trade balance, normal monsoon and accommodative stance of RBI are key positives for the economy. India well placed to reap benefits from global supply chain realignments currently underway -10% 7,000 -20% 5,000 -30% -40% 3,000 Workforce remobilization will be a key challenge for the core sectors of the economy, whilst there are signs of returning labor force driven by the aspirations of higher income -50% -60% 1,000 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Gradual recovery expected in second half of FY21 Targeted access to credit, policies and global supply chain realignments to aid economic recovery JSW Steel Source: MOSPI, SIAM 6#727.88 Indian steel Production and Consumption (mt) -41.6% 24.77 16.29 -55.0% 1.94 0.14 Steel Imports (mt) -35.0% JSW Steel Exports (mt) 203.5% 1.83 5.54 1.26 0.05 2.28 1.80 11.14 1.21 0.50 3.27 1.33 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Finished Semis Crude Steel Production Finished Steel Consumption Q1 FY20 Q1 FY21 ■FTA China Others 63% 65% % FTA Trend of monthly steel imports into India 62% 64% 59% 341 447 457 270 271 318 298 239 183 272 1,510 1,227 975 866 752 Jun-19 Sep-19 Dec-19 Mar-20 India emerges as a major steel exporter, amidst subdued domestic demand = JSW Steel Source: JPC Jun-20 7#8Agenda Business Environment Operational Performance Financial Performance JSW Steel JSW Forward Guidance & Projects Update 8#94.24 Quarterly volumes- standalone Crude Steel Production Steel Sales -30% -25% -25% -24% YoY QoQ YOY QoQ 3.97 3.75 3.70 2.96 Q1 FY20 Q1 FY21 Q4 FY20 2.80 Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 Q1 FY20 Q1 FY21 Q4 FY20 Flat 2.91 2.05 2.87 Flat 2.67 1.99 2.70 Long 1.05 0.45 0.95 Long 0.93 0.46 0.86 Semis 0.15 0.35 0.13 All figures are in million tonnes JSW Steel JSW#10Quarterly sales highlights - consolidated -24% -24% YOY 3.66^ QoQ 3.65^ 2.79^ 17% 13% 3.04* 3.20* 51% 52% 62% 57% 14% 11% 28% 31% 1.21* 16% 16% 7% 61% 12% 26% 55% 33% 26% 32% 67% Q1 FY20 Q1 FY21 OE ■Retail Auto Q4 FY20 Exports Q1 FY20 Q1 FY21 Q4 FY20 Other products JSW Sales volumes adversely impacted by nationwide lockdown in April ■ VA ■Special prodcuts Emerged as a large exporter of steel with highest ever quarterly shipments of 1.58mt Domestic sales gaining momentum month-on-month, with improvement visible in construction, infrastructure packaging and appliance sector Decline in Automotive Steel sales was in line with overall decline in Passenger and Commercial Vehicle which resulted in lower proportion of value added shipments in the overall sales mix JSW Steel All figures are in million tonnes. * Domestic sales, ^ Total sales (JSW Steel Standalone + JSW Steel Coated Products after netting-off inter- company sales). Value added and Special products (VASP) include HRPO, CRFH, CRCA, ES, Galvanised, Colour Coated and Special Bars and Rounds. Special products include HR special, TMT Special and WR Special 10#11Digital Impact -Q1 FY21 Social Media Performance MSME Focus JSW JSW Steel Home JSW Group About JSW Steel Products Sectors Register with JSW Steel Contact Us For MSME f in Followers - 232K+ Impressions- 1.6 million - Followers 93K + (growth by 19119 in QI) Impression-437.5K Give your business the JSW Steel Advantage JSW Steel Followers - 24K+ (growth by 1232 in QI ) Impressions- 259.2K Personalized solutions for MSMEs The Micro Small & Medium Enterprise (MSME) sector in India creates 11 crore jobs and accounts for 30 per cent of the country's GDP and is a priority sector to ensure that the nation works towards building a multi trillion-dollar economy that it is destined to be Followers - 2.4K+ (growth by 741 in QI ) Impressions-882.7 (0) Sajjan Jindal @sajjanjindal Launched a new website dedicated to MSMEs 1800 Toll Free Number Enquire Now EEPEC Members Register Here Launched MSME Toll Free number 1800-225-228 11#12Brand Communication #SAYNOTOPLASTIC #NERVESOFSTEEL JSW Steel A w 19 May #JSWColouron+ Colour Coated Roofing...See More JSW Steel @jswsteel - May 21 As an organisation that prioritises sustainability, we have banned the single- use plastic guard film of our JSW Colouron+ Colour Coated Roofing Sheets. You too can do your bit to save the environment by giving it up. #SayNoPlastic #SingleUsePlastic #JSWColouron+ #JSWSteel JSW Steel @jswsteel Mar 31 While we are protecting our family by staying at home, these heroes are safeguarding the entire nation by stepping out. Their #NervesOfSteel are ready to face every battle with courage! Join us and @Rishabh Pant 17 in saluting their valiant efforts. Rishabh Pant @Rishabh Pant 17 Mar 31 While we are fighting the global pandemic by staying in, there are many individuals who are stepping out of their homes everyday to ensure our safety. These are the people with #NervesOfSteel. Join me and @jswsteel in saluting the real heroes of today! Jai Hind H #NERVESOFSTEEL SW Colouron+ Premium Colour Coated Roeting Sheets has Superior Paint technology, even WITHOUT THE PLASTIC GUARD FILM 0:22 966 views 0:47 24.2K views Removed PLASTIC GUARDFILM on JSW COLOURON+ colour coated roofing sheets Reached 2.1M Audience Digitally #NERVESOFSTEEL Campaign to Salute Covid Heroes leveraging association Rishabh Pants JSW Steel JSW Reached 3.5lac+ Audience Digitally 12#13Product approval status in Q1 FY21 JSW Galvannealed (GA) with nano surface coating for enhanced formability. 1. Panel Hood Outer (Ultra Low carbon) 2. RR Door OTR (Ultra Low carbon) High Strength Steel (HSS) grade for automotive Load bearing, safety & crash parts 3. Door Impact Beam( Cold rolled steel with improved formability) 4. Seat Recliner part (HRPO -Low Alloy Steel) 5. Seat frame (HRPO -Low Alloy Steel) JSW Steel E-TA О Special forging alloy steel grade for auto OEMs, with better hardening characteristics 6. Gear (Cr-Mn) 7. Rear Axle shaft (Cr-Mo) 8. Gear Forging (Cr-Mo) 8 13#14Product approval status in Q1 FY21 (continued) 11 D 12 JSW Galvalume - GL - High Strength structural steel with excellent corrosion resistance for Solar Panel structure Electrical steel with high permeability used in Compressors for improving efficiency Special Grade & Insulation Electrical steel for Traction motor used in diesel locomotive DEER CLEAN Substitution of PPGI with PPGL for Washing machine front panel application, resulting an increase in corrosion free useful life 10 13 Pure Ghe Mithai Mate 14 SW Steel Forayed into the niche segment of tin products for various user segments covering packaging of Food can & Oil can 23 Grades were approved in Q1FY21 14#15Agenda JSW Business Environment Operational Performance Financial Performance Forward Guidance & Projects Update JSW Steel 15#16Financials - standalone crore Q4 FY20 Particulars Q1 FY21 Q1 FY20 Revenue from operations 10,293 17,698 15,277 Operating EBITDA 1,429 3,832 3,220 Other Income 154 159 146 Finance Cost Depreciation 933 1,005 954 867 826 929 Exceptional Items 1,309 Profit before Tax (217) 2,160 174 Tax Expenses (Credit) (71) 721 (68) Profit after Tax (146) 1,439 242 Diluted EPS* (0.61) 5.95 1.00 * Not Annualized JSW Steel JSW 16#17JSW Steel Operating EBITDA movement - standalone 780 3,220 EBITDA Q4 FY20 1,250 crore 1,429 239 Volume NSR Cost EBITDA Q1 FY21 SW 17#18SW Steel Operational performance - JSW Steel Coated Products Million tonnes Volumes Q1 FY21 Q1 FY20 Q4 FY20 Production 0.30 0.44 0.44 Sales 0.33 0.45 0.47 crore Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 2,049 2,990 2,915 Operating EBITDA 28 172 91 Profit after Tax (31) 70 19 JSW 18#19Operational performance - US Plate & Pipe Mill Production (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Plate Mill 57,035 83,516 63,528 Utilization (%) 23% 36% 27% Pipe Mill 4,175 23,093 15,193 Utilization (%) 3% 17% 11% Sales (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Plate Mill 53,210 57,032 55,274 Pipe Mill 4,611 23,195 27,534 USD mn Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 46.35 98.61 89.64 EBITDA (11.40) 2.00 (9.90) Net tonnes = 0.907 metric tonnes SW Steel JSW 19#20Operational performance - Ohio, USA Operational (net tonnes) Q1 FY21 Q1 FY20 Q4 FY20 HRC Production 26,954 80,037 73,138 HRC Sales 48,865 71,362 72,888 USD mn Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 29.39 42.47 56.54 Operating EBITDA (12.54) (36.12) (20.19) Net tonnes = 0.907 metric tonnes SW Steel JSW 20 20#21SW Steel Operational performance - Piombino, Italy Production (tonnes) Q1 FY21 Q1 FY20 Q4 FY20 Rolled Products (Bars, Wire Rod & Rails) 72,406 140,047 99,060 Grinding Ball 12,725 14,439 14,184 Sales (tonnes) Rolled Products (Bars, Wire Rod & Rails) Grinding Ball Q1 FY21 Q1 FY20 Q4 FY20 73,801 140,707 113,201 17,911 14,057 14,760 Key P&L data Q1 FY21 Q1 FY20 Revenue from Operations 62.42 100.87 Operating EBITDA (7.01) (4.16) Euro mn Q4 FY20 93.57 (10.91) JSW 21#22Monnet Ispat and Energy (JV of AION Capital and JSW Steel) JSW crore Key P&L data Q1 FY21 Q1 FY20 Q4 FY20 Revenue from Operations 595 777 617 Operating EBITDA (35) (26) 5 Net Profit After Tax (154) (136) (104) SW Steel 22 22#23Financials consolidated - · crore Q4 FY20 Particulars Revenue from operations Operating EBITDA Q1 FY21 Q1 FY20 11,782 19,812 17,887 1,341 3,716 2,975 Other Income 132 141 122 Finance Cost 1,016 1,042 1,036 Depreciation 1,047 1,026 1,108 Share of Profit/ (Loss) of Joint Ventures (53) (19) (29) Exceptional Items 805 Profit Before Tax (643) 1,770 119 Tax Expenses (Credits) Profit after Tax Diluted EPS * (61) 762 (69) (582) 1,008 188 (2.34) 4.25 0.95 SW Steel *Not Annualized JSW 23#2453,473 Net debt movement - consolidated 1,730 4,022 96 JSW crore 3,250 54,527 Net Debt* New Loan Taken Repayments Fx Impact as on Mar '20 Movement in Cash & Cash Equivalents Net Debt* as on June '20 Particulars 30.06.2020 31.03.2020 30.06.2019 Net Debt (crore) 54,527 53,473 47,767 Cash & cash equivalent (crore) 8,754 12,004 10,011 Net Debt/Equity (x) 1.54 1.48 1.35 Net Debt/EBITDA (x) 5.74 4.50 2.72 * Net Debt excludes Acceptances JSW Steel 24#25Volumes Q1 FY21 Results - Drivers of Performance ☐ Realisation JSW Operated at 66% capacity utilization vs industry average of 46% ■ Sales volumes decreased by 24% QoQ; given lower production Enhanced exports amidst subdued domestic demand Net sales realization decreased by 12% QoQ, driven by lower steel prices, higher proportion of semis and exports Negative operative leverage given lower utilization Impact of lower iron ore and natural gas price partially offset by higher coking coal and power cost Operating Costs - Depreciation ☐ Depreciation was lower given certain one offs in Q4FY20 Finance Cost ◉ JSW Steel Reduction in Finance Cost QoQ due to 16bps reduction in WAIR 25#26Agenda SW Business Environment Operational Performance Financial Performance Projects Update JSW Steel 26#27Key Project updates-Dolvi 5 to 10 mtpa expansion ◉ ☐ Doubling steel making capacity from 5 mtpa to 10 mtpa- To enhance capacity of flat products portfolio Captive Power-175 MW WHRB and 60 MW CPP to harness flue gases and steam from CDQ Coke oven Phase 2-Second line of 1.5 mpta coke oven battery along with CDQ Commissioning during H2 FY21 JSW Steel JSW 27#28Key Project updates- Vijayanagar CRM1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) Two CGL lines of 0.45 mtpa each New 1.2mtpa Continuous Pickling line ■ Commissioning in phases during H2 FY21 Color Coating line (0.3 mtpa) Commissioning by March 2021 Coke Oven plant ☐ 1.5 mtpa Coke Oven battery Part of cost savings project, commissioning in H2 FY22 Pellet plant ☐ 8 mtpa Pellet plant ☐ Part of cost savings project, commissioning by Q2 FY21 SW Steel JSW 28#29Key Project updates- others JSW Vasind and Tarapur: Downstream projects Modernisation-cum-capacity enhancement projects ■ Increase in GI/GL capacity by 1.08 mtpa ■ Increase in colour coating capacity by 0.28 mtpa ■ Commissioning in phases during H2 FY21 Kalmeshwar-Capacity enhancement of PPGL by 0.22 mtpa Commissioning by March 2021 SW Steel 29#30JSW Steel JSW Steel Branded Portfolio JSW Everglow Advanced Roofing Technology Beautiful Inside, Beautiful Outside SW Colouron+ Premium Al-Zn Colour Coated Sheets Roofs that add beauty to your home SW Galvos Premium GALVALUME Coil & Sheets Cost-effective Galvalume sheets that stand the test of time JSW Galveco Lead Free Galvanised Sheets 100% eco-friendly galvalume sheets JSW Colouron Premium Al-Zn Colour Coated Sheets Excellent and innovative mix of colour and durability SW Pragati Colour Coated Sheets Cost-effective coloured roofing solutions JSW Trusteel Premium Hot Rolled Sheets JSW Neosteel Pure TMT Bars Foundation to every strong structure JSW Vishwas Premium GC Sheets Finest quality steel roofs SW Vishwas+ Premium AL-Zn Sheets Anti-corrosive sheets that stand the test of time JSW PEHAL Steel Toilet Quality sanitation is everyone's right SW 30#31Forward looking and cautionary statement JSW Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risk and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition within Steel industry including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, our ability to commission mines within contemplated time and costs, our ability to raise the finance within time and cost client concentration, restrictions on immigration, our ability to manage our internal operations, reduced demand for steel, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which the Company has made strategic investments, withdrawal of fiscal/governmental incentives, impact of regulatory measures, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company. SW Steel 31#32SW Steel Thank you JSW 32