Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Tata Steel (Thailand) — Q3 FY17 Earnings Presentation
24 slides from Tata Steel (Thailand) Public's earnings presentation, Feb 7, 2017
Slide 1: Tata Steel (Thailand) Results Presentation Q3 FY17
Tata Steel (Thailand) welcomes [Results Presentation : Financial quarter ending 31st December 2016] 7th February 2017
Slide 2: Disclaimer
Disclaimer Statements in this presentation describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important facto
Slide 3: Content
Content • Corporate Citizenship • Economic Scenario & Steel Business • Q3 FY17 Performance • Business Outlook 3
Slide 4: Corporate Citizenship
Corporate Citizenship NTS Bangkok Supported to build new building CSR Activity for Employee with at Queen Savang Vadhana Setsatian, School for the deaf. Memorial Hospital. SCSC SISCO Cleaning beach areas at Taguan Buddhist ceremony at Wat Yang community and Pradoo bay Nom, Saraburi Province. Tata Gr
Slide 5: Content
Content • Corporate Citizenship • Economic Scenario & Steel Business • Q3 FY17 Performance • Business Outlook 5
Slide 6: World economic growth slows to 2.3%, Thailand grows 3.1% in 2016
World economic growth is slow down at 2.3%, Meanwhile Thailand growth to 3.1% in 2016 Global real GDP growth Source : World Bank (Jan’17) 6
Slide 7: China: Steel prices moved up from Jun'16 and peaked in December
China : Steel prices continued to move up from Jun’16 and hit to the peak in December ( 2016-01-11 –2017-01-04 ) Manufacturing PMI Coal price movement Billet & Rebar price movement PMI : Purchasing Manager Index Source: NBS, Steel home, Metal Expert 7
Slide 8: ASEAN growth 4.8% in 2016, CLMV countries high growth
ASEAN growth 4.8% in 2016 and especially CLMV countries are seeing high growth GDP growth % (f) 2015 2016 (e) 2017 2018 2019 2020 Vietnam 6.7 6.1 6.2 6.2 6.2 6.2 Cambodia 7.0 7.0 6.9 6.8 6.8 6.5 Laos 7.6 7.5 7.3 7.3 7.2 7.1 Myanmar 7.0 8.1 7.7 7.8 7.6 7.7 Source : IMF (Oct’16) 8
Slide 9: Business Environment
Business Environment 1. In December 2016, Thai Industries Sentiment Index (TISI) increased for 4th consecutive month and is the highest in last 22 months to 88.5 points. 2. Construction sector grew by 5.0%, compared with 7.8% in the last quarter. Real estate sector decelerated due to an end of real
Slide 10: Thailand Economy - Key indicators
Thailand Economy- Key indicators Thailand GDP relies by government support Private consumption expenditure grew at 3.5% in Q3/16. Forecasted increase 3% y-o-y for 2016 and 2.7% y-o-y in 2017. 6 5.3 % GDP 5 4 3.5 3.2 3.2 3.2 3 3 2.7 2.6 2.8 2.9 2.8 2.1 2 0.7 0.9 1 1 -0.4 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16
Slide 11: Key Infrastructure Projects Planned in Thailand
Key Infrastructure Projects Planned in Thailand Double track railways: -Chachoengsao-Khlong Sip Kao–Kaeng Thai-China high-speed rail: Khoi: 106 Km -Bangkok-Kaeng Khoi: 133 Km -Thanon Chira Junction-Khon Kaen: -Kaeng Khoi–Nakhon Ratchasima: 138.5 185 Km Km -Prachuap Khiri Khan-Chumphon: 167 -Nong Kha
Slide 12: Key Infrastructure Projects: 2017
Key Infrastructure Projects: 2017 Projects ready for construction (54.8 bn) Projects ready for bidding (469 • Logistics center development at Chiang Khong, bn) Chiang Rai (2.36 bn) • 200 electrical buses with charging • Airport development in 4 provinces (Tak, Yala, stations (2.2 bn) Sakhon Nakhon a
Slide 13: Thailand Steel Demand driven by construction sector: 2017-2021
Thailand Steel Demand drive from construction sector: 2017-2021 Source: F&S Market Research 13
Slide 14: Content
Content • Corporate Citizenship • Economic Scenario & Steel Business • Q3 FY17 Performance • Business Outlook 14
Slide 15: Steady increase in value added products sale
Steady increase in value added products sale Unit : Tons Seismic Rebar Good High Tensile Rebar Good 5,000 37,600 36,800 4,300 30,200 3,800 FY'16 FY'17 FY'17 FY'16 FY'17 FY'17 Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q2 FY17 Q3 FY17 Q3 Q2 Q3 Q3 Q2 Q3 Cut & Bend Good 12,200 9,900 9,100 FY'16 FY'17 FY'17 Q3 FY1
Slide 16: Q3 FY17 Sales
Q3 FY17 Sales Unit : Tons Total Domestic Rebar+Cut & Bend Good Good 314,000 232,200 205,000 303,200 189,900 284,000 Q3 FY16 Q3 Q2Q2 FY17 Q3 Q3 FY17 Q3Q3 FY16 Q2Q2FY17 Q3Q3FY17 FY'16 FY'17 FY'17 FY'16 FY'17 FY'17 Domestic Low Carbon Wire Rod Export Good Good 34,400 34,700 26,000 26,000 16,800 11,500
Slide 17: Financial Performance
Financial Performance Unit : Mn Baht Net Sales PBT Good Good 4,637 +20% Y-O-Y 4,623 256 225 3,866 (23) Q3 FY16 Q3FY16 Q2 Q2FY17 FY17 Q3 FY17 Q3FY17 Q3FY16 Q2 FY17 Q2FY17 Q3 FY17 Q3FY17 PAT EBITDA Good 394 419 Good 229 +459% Y-O-Y 192 75 (35) Q3 FY16 Q2 FY17 Q3 FY17 Q3 FY16 Q3FY16 Q2 FY17 Q2FY17 Q3 F
Slide 18: Gross debts Qtr3 FY17
Gross debts Qtr3 FY17 Unit : Mn THB Cash 1,187 MB Cash 813 MB 212 (663) Cash 769 MB 5,140 191 (202) (200) 174 (300) 4,477 (252) 4,100 FY16 Structured & LC Outstanding BG ST Loan from LT Loan H1 FY17 Structured & LC Outstanding BG Qtr3 FY17 Assigned TSGH Assigned Financing Financing Gross Debts FY16
Slide 19: Other Highlights
Other Highlights • Consecutive third quarter to cross delivery over 300,000 Tons • Ministry of Commerce announced revision in High Carbon Wire Rod Anti Dumping rate to 12.26% – 36.79% of CIF value in Dec’16; up from 5.17% – 33.98% • New Rebar standard announced in Dec’16 • Successfully applied Theor
Slide 20: Content
Content • Corporate Citizenship • Economic Scenario & Steel Business • Q3 FY17 Performance • Business Outlook 20
Slide 21: Business Outlook
Business Outlook • After flooding, increased construction expected in south Thailand. • Domestic construction looks healthy due to infrastructure projects. • Government support to provinces expected to improve household income. • Domestic market in China strong. Coupled with environment issues, expo
Slide 22: Thank you for your attention
qp TATA STEEL (THAILAND) TATA Thank you for your attention TATA STEEL (THAILAND)
Slide 23: Backup
qp TATA STEEL (THAILAND) TATA Backup TATA STEEL (THAILAND) 23
Slide 24: EBITDA Waterfall Q3 FY17 vs. Q2 FY17
EBITDA Waterfall Q3 FY17 vs. Q2 FY17 Unit : Mn THB 173 (202) 129 (3) (4) (1) 419 394 365 (23) (44) Act Qtr2 NR Sub Total Vol Conv. Cost Stock Impact FOH&ADM Extra Other Act Qtr3 (29) Mn THB Impact on external factor 54 Mn THB Impact on internal factor NR=Net realisation, VCOGS=variable cost of goods
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