Tata Steel Limited · NSE:TATASTEEL
Tata Steel — FY2012 Earnings Presentation
20 slides from Tata Steel's earnings presentation, May 18, 2012
Slide 1: Consolidated Financial Results FY12 Annual Result Presentation
May 18, 2012 Consolidated Financial Results Financial Year Ended 31st March 2012 Annual Result Presentation
Slide 2: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Corporate Developments 2
Slide 3: Tata Steel Group – Safety Performance
Tata Steel Group – Safety Performance Lost Time Injury Frequency (LTIF) Lost time injury frequency rate of 0.68 for 3.5 3.06 FY12 representing 14% improvement on 3 FY11 2.5 2.35 2.10 2 1.5 1.31 Common Health & Safety management 0.95 1 0.78 system being implemented across Tata 0.68 0.5 Steel Group 0
Slide 4: Group Financial Highlights
10.00 Group Financial Highlights Financial Year Ended 31st March’12 Deliveries Mn T Turnover US$ mn 26125 24.50 24.22 23344 Q4 6683 Q4 6.65 Q4 6.22 Q4 6649 Q3 5.90 Q3 5.84 Q3 6507 Q3 5718 Q2 6.06 6.12 Q2 Q2 6447 Q2 5631 Q1 5.90 Q1 6.05 Q1 5346 Q1 6487 FY11 FY12 FY11 FY12 EBITDA# US$ mn PAT* US$ mn 3
Slide 5: India and South East Asian Steel Market
India and South East Asian Steel Market India crude steel consumption Indian passenger vehicle production 7 Crude steel consumption (Mt, LHS) 350 Vehicle production (000’ units) 120% 6 300 Vehicle production (Y/Y % change) 100% 5 250 80% 4 200 60% 3 150 40% 20% 2 100 0% 1 50 -20% 0 0 -40% 2008 2009
Slide 6: Tata Steel India - Performance
10.00 Tata Steel India - Performance Financial Year Ended 31st March’12 Production Mn T Deliveries Mn T 6.41 6.63 6.69 6.97 1.78 1.71 Q4 1.77 1.74 Q4 Q4 Q4 1.75 1.73 Q3 1.64 1.62 Q3 Q3 Q3 Q2 1.61 Q2 1.71 Q2 1.66 Q2 1.65 Q1 1.59 Q1 1.75 Q1 Q1 1.59 1.40 FY11 FY12 FY11 FY12 Turnover US$ mn EBITDA US$ m
Slide 7: 3 MTPA Expansion at Jamshedpur
3 MTPA Expansion at Jamshedpur Pellet Plant I Blast Furnace TSCR LD#3 TSCR 7
Slide 8: South East Asia - Performance
10.00 South East Asia - Performance Financial Year Ended 31st March’12 Production Mn T Deliveries Mn T 3.09 2.86 2.79 2.95 Q4 0.78 0.73 Q4 0.74 Q4 0.69 Q4 0.63 Q3 0.78 Q3 0.66 Q3 0.72 Q3 Q2 0.73 Q2 0.73 Q2 0.79 Q2 0.79 Q1 0.67 Q1 0.74 Q1 0.75 Q1 0.78 FY11 FY12 FY11 FY12 Turnover US$ mn EBITDA US$ mn
Slide 9: European Steel Market
European Steel Market Steel using sector output (index 2005 = 100) Sector PMIs (new orders) 130 70 Expansion 120 60 110 50 100 40 Contraction 90 Automotive (EU) 30 80 Engineering (EU) Construction (EU) 70 Germany - machinery & equipment EU metal goods production 20 Construction (UK) UK - machinery &
Slide 10: Tata Steel Europe - Performance
10.00 Tata Steel Europe - Performance Financial Year Ended 31st March’12 Production Mn T Deliveries Mn T 14.80 14.27 14.65 14.02 Q4 3.80 Q4 3.30 Q4 4.11 Q4 3.55 Q3 3.66 Q3 3.62 Q3 3.39 Q3 3.35 Q2 3.61 Q2 3.53 Q2 3.50 Q2 3.57 Q1 3.73 Q1 3.81 Q1 3.65 Q1 3.55 FY11 FY12 FY11 FY12 Turnover US$ mn EBITDA
Slide 11: Tata Steel Europe Challenges Faced in FY12
Tata Steel Europe Challenges Faced in FY12 Market Operational performance Cost / Price Squeeze Continuing Eurozone Operational Performance crisis deflated European below plan steel demand after recovery in Jan - June Production issues primarily at Strip Products UK blast Raw material cost /
Slide 12: Tata Steel Europe – Comprehensive Strategy
Tata Steel Europe – Comprehensive Strategy Investments to improve product mix and service offering: Rail: 108m Rail Hayange • BF 4 rebuild at Port Talbot Aerospace: vacuum arc remelting furnaces and specialist • Supply Chain Transformation testing equipment • Upgrade hot strip mill IJmuiden Automoti
Slide 13: Tata Steel Europe - Blast Furnace Rebuild at Port Talbot
Tata Steel Europe - Blast Furnace Rebuild at Port Talbot Campaign life of at least 20 years, taking best available technology from within the group and from leading international technology suppliers An additional 500kt productivity to 2.5mtpa, with increased inner volume and hearth diameter, an
Slide 14: Group Financial Performance – Q4 FY'12
Group Financial Performance – Q4 FY’12 Figures in US$ Mn unless specified Q4 FY12 Q3 FY12 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (Mn T) 1.77 3.55 0.72 6.22 5.84 Turnover 1,863 3,916 620 6,683 6,507 EBITDA 585 29 21 672 398 EBITDA Margin (%) 31
Slide 15: Group Financial Performance – FY'12
Group Financial Performance – FY’12 Figures in US$ Mn unless specified FY12 FY11 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (Mn T) 6.63 14.02 2.95 24.22 24.50 Turnover 6,671 16,150 2,498 26,125 23,344 EBITDA 2,272 349 42 2,660 3,365 EBITDA Margin
Slide 16: Tata Steel Group - Debt Position
Tata Steel Group - Debt Position Net debt movement (US$ mn) Liquidity position (US$ mn) 961 Capex incurred in FY12: Total Liquidity US$3,359 mn 2398 US$2.4 billion 16 Cash and Cash Equivalents Undrawn Lines Conversion Rate: INR/USD – 50.87
Slide 17: Financing Developments
Financing Developments Developments in Q4 FY’12 US$200 million of a US$500 million JPY ECB Loan facility was prepaid in March 2012 On 20th January’12, Tata Sons exercised the option to convert 12 million warrants into ordinary shares of the Company at a price of Rs. 594/- per share, which is at
Slide 18: Raw Material Projects
Raw Material Projects Benga Project at Mozambique The plant was officially opened with the inauguration by the President of Mozambique on May 3, 2012 Railway siding completed Beira port commissioned and first coal exports in end May First Coal Chain & Benga Plant Inauguration 2012 850kt coki
Slide 19: Business Outlook
Business Outlook Global steel consumption to improve but production may dip again in the developed regions Chinese steel demand growth expected to moderate Falling exports and inventory indicate lift in domestic demand Indian steel industry is expected to grow at 6.9% in 2012 as per latest f
Slide 20: Thank You
qb TATA Thank You TATA STEEL 20