Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Presentation (April 2012)
24 slides from Tata Steel's investor presentation, April 2012
Slide 1: Tata Steel Limited Investor Presentation April 2012
TATA STEEL LIMITED Investor Presentation April, 2012
Slide 2: Tata Group - Leadership with Trust
Tata Group - “Leadership with Trust” Leading Conglomerate with an Established Global Presence COMMUNICATION ENGINEERING MATERIALS ENERGY CHEMICALS CONSUMER PRODUCTS SERVICES AND INFO SYSTEMS One of the world‟s largest steel companies globally Principally engaged in providing information with 27.
Slide 3: Tata Steel Group: Diversified global steel producer
Tata Steel Group: Diversified global steel producer The world’s top 10 steel company and the world’s 2nd most geographically diversified steel producer Scandinavia Crude steel capacity of 27 MT Western CIS Europe A balance global presence in over NML, Canada CEE (iron ore) 50 markets and manufac
Slide 4: Tata Steel Group: Global production hubs and diverse product mix
Tata Steel Group: Global production hubs and diverse product mix One production hub Construction Automotive Packaging Capacity: 6.8 mtpa India Distribution centres Two production hubs Capacity: 10.7 mtpa UK Distribution centres Tyre Cord Flooring One production hub Personal Capacity:
Slide 5: Securing competitive advantage through our long term strategy
Securing competitive advantage through our long term strategy Indian growth story Raw material investments Unique steel operation: Presence in both developed Value addition through downstream push and developing markets Control over logistics Enhance competitiveness through continuous improvement 5
Slide 6: Tata Steel India – Growth story
Tata Steel India – Growth story Kalinganagar Project, Odisha 6
Slide 7: Tata Steel India: Brownfield expansion
Tata Steel India: Brownfield expansion Project specifications: 3 mtpa 3.05 mtpa Blast Furnace brownfield 6 mtpa pellet plant expansion at 2.7 mtpa LD3 capacity Jamshedpur Two Coke Oven Batteries, each of 0.70 Mtpa capacity Capacity expansion – addl. 2.9 mtpa of flat steel, increasing fro
Slide 8: Odisha project
Odisha project Key activities undertaken: 1. The boundary wall & land survey is completed 2. Site grading & construction road work is in progress and 50% of the work is completed 3. Construction of water reservoir is completed and water supply is received from IDCO 4. Piling and civil works are in p
Slide 9: Raw material investments
Raw material investments Benga infrastructure progressing well 9
Slide 10: Raw material project: Benga, Mozambique
Raw material project: Benga, Mozambique Majority held by Rio Tinto (65%) Measured, indicated and proven coal resources of ~4 bn tonnes Large, open cut mine with planned full production capacity of 20 mtpa ROM coal – HCC of 6 mt and export thermal coal of 4 mt Tata Steel has 35% equity stake an
Slide 11: Raw material project: Direct Shipping Ore, Canada
Raw material project: Direct Shipping Ore, Canada 64mn tonnes of high grade (58-60% Fe) iron ore reserve Production of 4.2mn tonnes per year of >64% Fe grades – mine life of more than 15 years Environmental approval & Project release by Government of Newfoundland and Labrador Tata Steel has
Slide 12: Value Addition through downstream push
Value Addition through downstream push People – graphic (R&D) 12
Slide 13: Strategic Value Add: Downstream businesses in India
Strategic Value Add : Downstream businesses in India Value added services like slitting, cut to length, pickling, roll forming, rebar processing etc. Tata Steel Processing & 5 processing units and 15 sales locations across India with a processing capacity of 2.5 mtpa Distribution Roll Forming
Slide 14: Financial & operating performance
Financial & operating performance Building Solutions 14
Slide 15: Group Financial Highlights – 9M FY12
10.00 Group Financial Highlights – 9M FY12 Deliveries Mn T Turnover US$ mn 17.9 18.0 18639 16006 Q3 5.90 5.84 Q3 6239 Q3 Q3 5482 Q2 6.06 Q2 6.12 Q2 6181 Q2 5399 Q1 5.90 Q1 6.05 Q1 Q1 6219 5125 9M FY11 9M FY12 9M FY11 9M FY12 EBITDA US$ mn PAT * US$ mn 934 2337 2496 906 Q2 40 Q3 366 Q3 189 Q3 636 Q2
Slide 16: Group financial performance – Q3 FY12
Group financial performance – Q3 FY12 Figures in US$ mn unless specified Q3 FY12 Q3 FY11 Tata Steel Tata Steel South East Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (Mn T) 1.62 3.35 0.66 5.84 5.90 6,239 5,482 Turnover 1,580 3,870 586 Reported EBITDA 491 (147) (2) 366 636
Slide 17: Operating performance – Tata Steel India
Operating performance – Tata Steel India Flat products 917 914 940 741 730 665 Flat products volume increased 3% y-o-y in line with increase in production volume Long products sales dropped in Q3 FY12 Q3 FY11 Q2 FY12 Q3 FY12 Flat Products sales (in kt) due to lower availability of semis on Long
Slide 18: Continuous improvements – Tata Steel India
Continuous improvements – Tata Steel India Figures in US$mn Savings on improvement initiatives Initiative wise break up 250 211 1 54% 200 27 70 150 137 113 32 12 100 184 15 50 105 DMAIC/SIP TOC 0 Marketing Initiative KVHS 9M FY11 9M FY12 Synergy Cost savings Value addition Improvement initiatives :
Slide 19: Updates on South East Asian operations
Updates on South East Asian operations NatSteel Holdings Singapore performed better on account of better scrap-rebar gap management and its conversion cost reduction programme. Downstream sales were best ever. Order book expanding in Singapore. Key MRT and Housing Board Projects are underway O
Slide 20: Continuing the transformation in Europe
Continuing the transformation in Europe Future profitability of Europe dominated by focussed investment (such as energy efficiency) and reduced cost base in steelmaking hubs Major changes Announced turnaround ahead of the current crisis, to ensure our recovery is already started timed to the mar
Slide 21: Outlook for Tata Steel in Europe
Outlook for Tata Steel in Europe Raw material purchasing prices have eased in Q3, with some suppliers moving to an intra-quarter pricing mechanism Raw material Reduced lag between pricing and income statement impact, but not eliminated situation altogether; should improve the margin spread at en
Slide 22: Net debt movement and liquidity position
Net debt movement and liquidity position Net debt movement (US$ mn) 10,000 9,523 548 764 777 281 9,000 8,759 8,492 171 158 8,000 7,000 Net debt on 30- Incr. in Decr. in curr. New debts Repayments Exchange adj. Net debt on 31- Fwd cover Underlying net 9-11 Cash&Equiv. invest. 12-11 debt Liquidity pos
Slide 23: Pensions Management – European Operations
Pensions Management – European Operations Figures in £ mn Mar-11 Jun-11 Sep-11 Dec-11 Total Scheme Retirement Benefit Assets 16,090 16,401 16,164 16,817 Total Scheme Retirement Benefit Liabilities (15,743) (16,051) (16,058) (16,727) Net Pension Surplus (BSPS &SPH) 347 350 106 90 Pension Asset Compos
Slide 24: Thank You
TATA Thank You TATA STEEL