Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Q4 FY2016 Earnings Presentation
27 slides from Tata Steel (Thailand) Public's earnings presentation, May 17, 2016
Slide 1: Tata Steel (Thailand) welcomes Analysts and Bank Officials
Tata Steel (Thailand) welcomes Analysts and Bank Officials [Results Presentation : Financial quarter ending 31st March 2016] 17th May 2016 1
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 • Q4 & Annual FY16 Performance • Business Outlook 3
Slide 4: Safety & Environment
Safety & Environment TSTH Loss Time Injury Frequency Rate (LTIF) 0.814 CO2 Emission (Tons per ton of crude steel) Good 0.77 Good 0.614 0.606 0.595 0.67 0.587 0.571 0.588 0.575 0.588 0.47 0.33 1 LTI 0.17 0.17 0 0 0 FY'12 FY'13 FY'14 FY'15 FY'16 FY'16 FY'16 FY'16 FY'16 FY'12 FY'13 FY'14 FY'15 FY'16 FY
Slide 5: Key Highlights for CSR in Q4 FY'16
Key Highlights for CSR in Q4 FY’16 93% of all TSTHG employees volunteered for CSR activity 5s at Santi Khiri Temple Visit Ban Rangsit On March 20, NTS employees On Mar 15, Birthday CSR Activity: offered lunch and participated supported Nun Ordination event by in the recreational activities with the
Slide 6: Content
Content • Corporate citizenship • Economic Scenario & Steel Business • Q4 & Annual FY16 Performance • Business Outlook 6
Slide 7: Business Environment
Business Environment Overcapacity is posing serious problem for steel makers. The capacity utilization declined to 67.5% in 2015. TSTH Board – May 16 7 Source: The Organisation for Economic Co-operation and Development (OECD) Secretariat
Slide 8: Business Environment
TSTH Board – May 16 Business Environment Source: WSA 8
Slide 9: Business Environment in Thailand
Business Environment in Thailand 6 5.3 Thai GDP Thailand Industries Sentiment Index Good Good 99.5 100 5 4 95 92.6 3 3.2 2.7 2.8 2.9 2.8 3 2.6 2.1 90 87.4 2 85.8 86.0 0.9 1 85 1 0.7 -0.4 0 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -1 2013 2014 2015 2016 75 2012 2013 2014 2015 2016 (Q1) Steel Consump
Slide 10: Deceleration in China Continues
Deceleration in China Continues • In 2015 GDP and FAI growth hit 25 years and 15 years low respectively • Construction sector depression drives steel demand contraction • The target for GDP growth in China during 2016-2020 is revised downwards from 7.0% to 6.5% • Out of 33 listed Steel companies, 22
Slide 11: However there is a visible Shift in China in Q4 Fy16
However there is a visible Shift in China in Q4 Fy16 TSTH Board – May 16 Billet & Rebar price movement PMI : Purchasing Manager Index Source: Worldsteel China Industry update 11
Slide 12: Thailand GDP: Outlook for 2016
TSTH Board – May 16 Thailand GDP : Outlook for 2016 Source % Updated The Thai economy could grow below the baseline ADB 3.0% March 2016 forecast due to : (1) a sharper-than-expected slowdown in China BOT 3.1% March 2016 and Asia, which may affect major advanced economies more than expected and CIMB
Slide 13: Content
Content • Corporate citizenship • Economic Scenario & Steel Business • Q4 & Annual FY16 Performance • Business Outlook 13
Slide 14: Steady increase in value added rebar sales
Steady increase in value added rebar sales Unit : Tons Dom. DB SD40S Dom. DB SD50 Good 30,100 Good 5,700 4,200 28,900 2,400 27,800 Jan-Mar'15 Oct-Dec'15 Jan-Mar'16 Q4 FY15 Jan-Mar'15 Q3 FY16 Oct-Dec'15 Q4 FY16 Jan-Mar'16 Q4 FY15 Q3 FY16 Q4 FY16 Q4Q4 Q4 FY15 FY15 Q3Q3 FY16 Q4Q4 FY16 Q4 Q3 Q4 FY'15 FY
Slide 15: FY16 Q4 Sales
FY16 Q4 Sales Unit : Tons Total Sales Good Dom. REBAR+C&B Good 315,300 208,900 206,300 291,000 283,900 189,800 Jan-Mar'15 Q4 FY15 Oct-Dec'15 Q3 FY16 Jan-Mar'16 Q4 FY16 Q4 FY15 Jan-Mar'15 Q3 FY16 Oct-Dec'15 Q4 FY16 Jan-Mar'16 Q4 Q3 Q4 Q4 Q3 Q4 FY'15 FY'16 FY'16 Dom. LCWR Exp. Total Good 32,600 Good 2
Slide 16: Gross debts Q4 vs. Q3
Gross debts Q4 vs. Q3 Unit : Mn THB 803 (211) (100) 5,140 202 4,446 Q3 Structured & Assigned LC Outstanding ST Loan from TSGH LT Loan Q4 Financing Term loan outstanding 200 MB. Next installment due in May'16 and Aug’16. 16
Slide 17: Financial Performance
Financial Performance Unit : Mn THB Net Sales Good EBITDA Good 4,937 338 4,251 3,866 75 15 Q4FY15 Q3FY16 Q4FY16 Q4FY15 Q3FY16 Q4FY16 PBT Good Good 156 PAT 132 Q4FY15 Q3FY16 Q4FY16 Q4FY15 Q3FY16 Q4FY16 (23) (35) Q4FY15 (152) 17 Q4FY15 (357)
Slide 18: EBITDA Waterfall Q4 vs. Q3
EBITDA Waterfall Q4 vs. Q3 Unit : Mn THB 39 (2) (23) 338 288 (40) 75 - Q3'FY16 NR COGS Vol Product Mixed Others Q4'FY16 18
Slide 19: Tight control on inventory has helped release cash
Tight control on inventory has helped release cash Unit : Mn THB Inventory 3600 3300 3200 2499 2300 FY'15 Q1'16 Q2'16 Q3'16 Q4'16 19
Slide 20: Financial Performance – FY16
Financial Performance – FY16 Unit : Mn THB Net Sales Good EBITDA Good 25,363 1,006 877 21,355 16,733 374 FY14 FY15 FY'16 FY14 FY15 FY'16 PBT Good PAT Good 223 154 84 31 FY14 FY15 FY'16 FY14 FY15 FY'16 (386) 20 (611)
Slide 21: EBITDA FY16 vs. FY15
EBITDA FY16 vs. FY15 Unit : Mn THB 13 100 877 (4,851) 5,218 23 374 FY15 NR COGS Vol Product Mixed * Others FY16 * Others 100 Mn. THB ; Extras income 31 FOH &ADM &MTOP 26 ,Stock impact 15 , Loss of FA 13 , Realized Forex 7 and others 7 NR=Net realisation, MVCOGS=Moving average cost of goods sold, EBI
Slide 22: Gross debts FY16
Gross debts FY16 Unit : Mn THB Cash 709 MB Cash 1,187 MB 5,453 (903) 202 (865) 1,219 5,139 FY15 Structured & Assigned Financing LC Outstanding ST Loan from TSGH LT Loan FY16 Gross Debts FY15 FY16 Structured & Assigned Financing 3,293 2,390 LC Outstanding 470 1,723 BG 354 354 ST Loan from TSGH - 202
Slide 23: Retained earnings of FY16 & FY15
Retained earnings of FY16 & FY15 AS AT:31 MARCH 2016 Unit : BAHT TSTH CONSOLIDATED Share capital 8,421 8,421 Share premium 3,389 3,389 Retained earnings Legal reserve 337 337 Unappropriated 561 (3,581) Minority interest - (13) Shareholder's Equity 12,708 8,553 AS AT:31 MARCH 2015 Unit : BAHT TSTH CO
Slide 24: Status of Key initiatives
Status of Key initiatives SN Initiative Status 1 PEP* New sources of cheaper scrap being developed Stores & Spares inventory reduced by 85 MB in last 4 months Full year savings 192 MB ( annualized potential identified 240 MB) 2 Fixed cost reduction Fixed cost lower by 206 MB compared to PY 3 Increas
Slide 25: Content
Content • Corporate citizenship • Economic Scenario & Steel Business • Q4 & Annual FY16 Performance • Business Outlook 25
Slide 26: Outlook for 2016
20 Outlook for 2016 • Huge volatility in steel market since mid Jan’16 due to less inventory in the system and futures market over-heated in China • Many ‘Zombie’ steel companies in China restarting • Aggressive exports from China to continue as slowdown continues there. Many countries resorting to
Slide 27: Thank you for your attention
Thank you for your attention 27
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