Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q3 FY2013 Earnings Presentation
28 slides from Tata Steel's earnings presentation, Feb 13, 2013
Slide 1: Consolidated Financial Results Quarter Ended 31st December 2012
February 13, 2013 Consolidated Financial Results Quarter Ended 31st December 2012 Analyst Meet Presentation
Slide 2: Tata Steel Group – Safety Performance
Tata Steel Group – Safety Performance Lost Time Injury Frequency (LTIF) 3.5 Tragic rail traffic fatality at 3.06 Jamshedpur 3 2.5 2.35 2.10 2 Reduction continues in lost time 1.5 1.31 injuries with 9M FY13 0.95 performance 13% better than 1 0.78 0.68 FY12 0.59 0.5 0 FY06 FY07 FY08 FY09 FY10 FY11
Slide 3: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 3
Slide 4: Global Market Environment
Global Market Environment Global crude steel production & capacity utilisation GDP and IP growth in China (y/y %) 140 100% 16 Crude steel production (Mt, LHS) 130 Capacity utilisation (%, RHS) GDP 14 90% Industrial production 120 12 110 80% 10 100 8 70% 90 6 80 4 60% 70 2 60 50% 0 2008 2009 2010 201
Slide 5: Raw Materials and Steel Prices
Raw Materials and Steel Prices Iron ore fines, US$/tonne HRC spot price, US$/tonne 200 1,000 150 900 100 800 Spot CFR China (62%) 700 50 Contract FOB Brazil 600 0 2010 2011 2012 2013 500 Hard coking coal, US$/tonne 400 350 Germany domestic 300 300 USA domestic (Midwest) 250 Russia export (FOB Black
Slide 6: India and South East Asian Economy
India and South East Asian Economy GDP and IP growth in India (y/y %) PMI‟s for India and SEA countries GDP Forecast by OE 20 60 Industrial production 15 55 10 Expansion 50 5 Contraction India Indonesia 0 45 Singapore Vietnam 2008 2009 2010 2011 2012 2013 2014 -5 40 -10 2010 2011 2012 2013 Indian pa
Slide 7: European Economy and Steel Market
European Economy and Steel Market GDP growth in Eurozone and UK Apparent finished steel demand (Mt per q.) Flat products Forecast by Eurofer 6% 30 Long products 4% 2% 25 -26% 0% 2007 2008 2009 2010 2011 2012 2013 -2% 20 -4% Eurozone (Y/Y % chg) -35% -6% UK (Y/Y % chg) 15 Eurozone (Q/Q % chg) -8% UK
Slide 8: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 8
Slide 9: Performance of Tata Steel India Q3 FY13
Performance of Tata Steel India Q3 FY13 Production (MT) Deliveries (MT) 2.07 1.89 1.87 1.73 1.73 1.62 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 1,704 476 485 1,664 459 1,525 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 9 Conversion Rate USDINR – 54.98
Slide 10: Performance of Tata Steel India – Flat Products
Performance of Tata Steel India Flat Products Flat Products 1.5 750 Launched “Tata Astrum”- first 705 712 HR Sheets & Coils brand for 700 667 Emerging Corporate Account 1.26 650 (ECA) customers 1 1.06 1.09 0.98 0.94 1.01 600 550 0.5 500 450 0 400 Q3 FY12 Q2 FY13 Q3FY13 Production (in MnT) Sales (in
Slide 11: Performance of Tata Steel India – Long Products
Performance of Tata Steel India Long Products Long Products 0.9 712 750 Apr-Dec Retail Sales (in kt) 700 855 662 0.80 0.81 0.80 782 0.75 +9% 0.72 650 0.6 0.68 660 600 541 550 0.3 500 450 0 400 Q3 FY12 Q2 FY13 Q3FY13 Q1-Q3 FY11 Q1-Q3 FY12 Q1-Q3 FY13 Production (in MnT) Sales (in MnT) Net Realizations
Slide 12: Ferro Alloys and Mineral Division (FAMD)
Ferro Alloys and Mineral Division (FAMD) 150 1300 1211 120 1153 1142 126 109 1100 90 60 63 900 58 35 55 50 27 32 30 37 19 27 10 12 13 0 700 Q3 FY'12 Q2 FY'13 Q3 FY'13 Ferro Chrome Sales (in kt) Ferro Manganese Sales (in kt) Silico Manganese Sales (in kt) Dolomite Sales (in kt) Operating Profit (US$
Slide 13: Performance of South East Asia Q3 FY13
Performance of South East Asia Q3 FY13 Production (MT) Deliveries (MT) 0.77 0.82 0.70 0.77 0.63 0.66 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 638 630 26 565 4 (1) Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 13 Conversion Rate USDINR – 54.98
Slide 14: South East Asia – An Update
South East Asia – An Update NatSteel Holdings Singapore: Achieved a new high in local downstream deliveries of 46kt in Oct, an annualized rate of 550 ktpa Continued to pursue growth in downstream volumes in Singapore through modernisation of plant and equipment China: December sales volume
Slide 15: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 15
Slide 16: Performance of Tata Steel Europe Q3 FY13
Performance of Tata Steel Europe Q3 FY13 Production (MT) Deliveries (MT) 3.62 3.35 3.42 3.34 3.29 3.02 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 3,735 3,695 3,297 (7) (78) (142) Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 16 Conversion Rate USDINR – 54.98
Slide 17: Tata Steel Europe EBITDA bridge Q3 FY13 vs Q2 FY13
Tata Steel Europe Limited EBITDA bridge Q3 FY13 vs Q2 FY13 US$ million Q2 FY13 Selling Q3 FY13 Prices $(7)m Raw $(78)m $(118)m Material Prices Manufacturing Other $94m $46m $(46)m Volume $(16)m $(31)m Other Input Prices 17 Conversion Rate USDINR – 54.98
Slide 18: Tata Steel Europe – An Update
Tata Steel Europe – An Update Update on Blast Furnace 4 BF4 was blown back in Feb‟13 Over the rebuild period the Hub has operated a one furnace operation, supported with slab purchases from both the Long Products Hub (i.e. internal) and external sources The rebuilt furnace will see the followi
Slide 19: Tata Steel Europe – An Update
Tata Steel Europe – An Update Mid-Term Improvement Plan Tata Steel realised £96 million in consideration during the 9 months ended December 2012 through 7 separate divestment transactions of varying sizes and complexity, across multiple jurisdictions as part of ongoing portfolio management Tata
Slide 20: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 20
Slide 21: Group Financial Highlights 9M FY13
Group Financial Highlights 9M FY13 Deliveries Mn T Turnover US$ Mn 18.0 17.6 17988 18200 Q3 5.84 Q3 5.83 Q3 6021 Q3 5840 Q2 6.12 Q2 6.07 Q2 5965 Q2 6208 Q1 6.05 Q1 5.68 Q1 6002 Q1 6152 9M FY12 9M FY13 9M FY12 9M FY13 EBITDA US$ Mn PAT * US$ Mn 1839 901 368 1507 Q2 39 Q3 Q3 410 549 Q1 972 Q2 Q2 446 (
Slide 22: Group Financial Performance – Q3 FY13
Group Financial Performance – Q3 FY13 Figures in US $ Mn unless specified Q3 FY13 Q3 FY12 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (MnT) 1.89 3.02 0.82 5.83 5.84 Turnover 1,704 3,297 630 5,840 6,021 EBITDA 459 (78) 26 410 368 EBITDA Margin (%) 2
Slide 23: Net Debt Movement
Net Debt Movement Net Debt Movement (US$ mn) US$ mn 3129 1170 242 11780 360 11812 10894 (1499) 10546 (2485) 10288 (1266) (257) Gross Debt Loans Loans Reval. Gross Debt Loans Loans Reval. Gross Debt Cash & Net Debt Forward Underlying Mar 12 taken repaid Impact Sept 12 taken repaid Impact Dec 12 Cash
Slide 24: Tata Steel Europe - Pensions Management Update
Tata Steel Europe - Pensions Management Update Figures in £ mn Dec-11 Sep-12 Dec-12 Total Scheme Retirement Benefit Assets 16,817 17,132 17,677 Total Scheme Retirement Benefit Liabilities (16,727) (17,098) (17,599) Net Pension Surplus (BSPS &SPH) 90 34 78 A Recovery Plan has been agreed with the T
Slide 25: Agenda
Agenda Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Update on Key Projects 25
Slide 26: 3 MTPA Expansion at Jamshedpur
3 MTPA Expansion at Jamshedpur Coke Battery 10 „I‟ Blast Furnace Ladle Furnace 3 „I‟ Blast Furnace has stabilized and the Apr-Dec‟12 production was 2.02 MnT (Q3 FY13: 0.78 MnT) LD#3 & TSCR: Second stream of TSCR has been commissioned Production ramp up is better than plan, Apr-Dec‟12 Crude S
Slide 27: Business Outlook
Business Outlook Global steel production continues to grow; but overcapacity remains an overhang Leading economic indicators across regions show signs of improvement Apparent steel demand contracted by 9.7% in EU in 2012. Decline of ~0.7% predicted for 2013 with stability expected in 2014 Ch
Slide 28: Thank You
qb TATA Thank You TATA STEEL 28