Tata Steel Limited · NSE:TATASTEEL
Tata Steel — FY2011 Earnings Presentation
23 slides from Tata Steel's earnings presentation, May 25, 2011
Slide 1: Consolidated Financial Results, Financial Year Ended 31st March 2011
May 25, 2011 Consolidated Financial Results Financial Year Ended 31st March 2011 Press Meet Presentation
Slide 2: Introduction and Consolidated Highlights
Introduction and Consolidated Highlights Port Talbot 2
Slide 3: Tata Steel Group – Safety Performance
Tata Steel Group – Safety Performance Lost Time Injury Frequency (LTIF) 10 tragic fatalities to employees/contractors in FY11 3.06 2.35 Company wide focus to ensure casualty- 2.10 free operations 1.31 Lost time injury frequency rate of 0.78, an 0.95 0.78 18% improvement over FY10 On track to achieve
Slide 4: Group Financial Highlights, Financial Year Ended 31st March'11
Group Financial Highlights Financial Year Ended 31st March’11 Deliveries (MnT) 23.61 23.54 Turnover (US$ Mn) 26,635 22,966 6.30 6.54 7,586 6,169 6.02 5.68 6,524 5,877 6.06 5.88 6,426 5,696 5.23 5.44 5,224 6,099 FY10 FY11 FY10 FY11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PAT* (US$ Mn) 2,015 EBITDA (US$ Mn) 3,836 937
Slide 5: Global Business Environment
Global Business Environment Building Solutions 5
Slide 6: Global Market Environment
Global Market Environment Quarterly apparent steel use & capacity utilisation Steel demand outlook – 2010 & 2011 (% Y/Y change) 40% 2008-09 2009-10 2010-11 37% 400 100 2010 2011 34% 35% Global capacity 90 350 utilisation 30% 30% 80 300 70 25% 250 21% 60 20% 200 50 World excl. China 15% 13% 13% 40 12
Slide 7: Raw Materials and Steel Prices
Raw Materials and Steel Prices Iron ore fines, US$/tonne HRC spot price, US$/tonne 250 Contract FOB Brazil Spot CIF China (63.5% Fe) 1,400 200 India (Mumbai) 150 Chinese domestic (incl VAT) USA domestic (FOB Gulf) 1,200 Russia export (FOB Black Sea) 100 Germany domestic 50 1,000 0 Jun- Dec- Jun- Dec
Slide 8: Performance of Indian and South East Asian Operations
Performance of Indian and South East Asian Operations Tata Steel Works, Jamshedpur 8
Slide 9: Performance of Tata Steel India
Performance of Tata Steel India Financial Year Ended 31st March’11 Deliveries (MnT) Turnover (US$ Mn) 6.17 6.42 6,593 5,612 1.70 1.71 1,871 1,646 1.60 1.64 1,659 1,430 1.45 1.67 1,594 1,276 1.42 1.40 1,260 1,469 FY10 FY11 FY10 FY11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDA (US$ Mn) PAT* (US$ Mn) 2,742 1,540 2,
Slide 10: Performance of European Operations
Performance of European Operations Pan view of the IJmuiden plant 10
Slide 11: Performance of Tata Steel Europe
Performance of Tata Steel Europe Financial Year Ended 31st March’11 14.42 Deliveries (MnT) Turnover (US$ Mn) 14.87 17,044 14,768 3.78 4.13 4,924 3,833 3.69 3.47 4,024 3,758 3.84 3.56 4,124 3,761 3.11 3.71 3,972 3,416 FY10 FY11 FY10 FY11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDA (US$ Mn) PAT* (US$ Mn) 374 943 -
Slide 12: Group Financial Performance
Group Financial Performance People – graphic (R&D) 12
Slide 13: Group Financial Performance – Q4 FY11
Group Financial Performance – Q4 FY11 Figures in US $ Mn unless specified Q4 FY11 Q3 FY11 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (Mn T) 1.71 4.13 0.78 6.54 5.68 Turnover 1,871 4,924 695 7,586 6,524 EBITDA 687 350 21 1,055 757 EBITDA Margin (%)
Slide 14: Group Financial Performance – FY11
Group Financial Performance – FY11 Figures in US $ Mn unless specified FY11 FY10 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (Mn T) 6.42 14.87 3.09 23.54 23.61 Turnover 6,593 17,044 2,540 26,635 22,966 EBITDA 2,742 943 80 3,836 2,095 EBITDA Margin
Slide 15: Debtor and Inventory Turnover Ratio
Debtor and Inventory Turnover Ratio Tata Steel India Tata Steel Europe 4 0.45 1 0.18 0.37 0.37 0.15 0.15 0.36 0.36 0.40 1 0.16 0.16 4 0.35 1 0.61 0.12 0.14 3 2.68 2.75 2.78 1 0.56 0.12 0.30 0.53 3 2.27 1 0.46 0.10 0.25 2 0 0.08 0.20 2 0 0.06 0.15 1 0.10 0 0.04 0 0.02 1 0.05 0 - 0 - Q1 FY11 Q2 FY11 Q
Slide 16: Tata Steel Group Gross Debt Movement & Net Debt Position
Tata Steel Group Gross Debt Movement & Net Debt Position US$ mn 8844 510 13611 11910 10459 9830 (7653) (3152) (629) Gross Debts Loans taken Loans repaid Exch. (G)/L Gross Debts Cash & Cash Net Debts Fwd Cover Under- lying Mar-10 Mar-11 Eq Mar-11 Mar-11 Mar-11 Cash & Cash Equivalents include current
Slide 17: Pensions Management – European Operations
Pensions Management – European Operations £ Mn FY10 FY11 Total Scheme Retirement Benefit Assets 15,887 16,090 Total Scheme Retirement Benefit Liabilities (15,628) (15,743) Net Pension Surplus (BSPS &SPH) 259 347 Pension Asset Composition – BSPS 120% 10,968 11,365 11,317 £ Mn 100% 3% 2% 2% 80% 64% 63
Slide 18: Corporate Developments
Corporate Developments Kalinganagar Project, Odisha 18
Slide 19: Key Corporate Milestones
Key Corporate Milestones • Launched a 57 million equity shares Follow on Public Offer (FPO) on January19 and raised Rs. 3,477 crores (US$ 778 million) • Completed India’s first ever offering of Corporate Hybrid Securities with an Fund Raising/ issuance of Rs. 1,500 crores (US$ 332 million) in Mar’11
Slide 20: Odisha Project Status Update
Odisha Project Status Update SINTER PLANT BLAST FURNACE AREA SINTER COOLER AREA PILING WORK IN PROGRESS IN CONVERTER AREA 20
Slide 21: Odisha Project Update
Odisha Project Update Setting up of a 6 mtpa integrated steel plant in two phases at Kalinganagar, Odisha for the manufacture of flat products The project cost of Rs. 34,500 crores (US$ 7.8 Bn) for both phases combined was approved by the Board in February’11. Project cost is inclusive of cold rolli
Slide 22: Business Outlook
Business Outlook Developed world recovery to stay muted due to on-going deleveraging and fiscal restraint Euro Area growth to be sustained by stronger investment and net trade surplus despite fiscal headwinds China to continue with tightnening monetary policy to control inflation despite concerns ov
Slide 23: Thank You
qe TATA Thank You TATA STEEL