Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q1 FY2013 Earnings Presentation
20 slides from Tata Steel's earnings presentation, Aug 13, 2012
Slide 1: Consolidated Financial Results Q1 FY13 Analyst Presentation
August 13, 2012 Consolidated Financial Results First Quarter Ended 30th June, 2012 Analyst 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 Business Outlook 2
Slide 3: Tata Steel Group – Safety Performance
Tata Steel Group – Safety Performance Lost Time Injury Frequency (LTIF) 3.5 Reduction in lost time injuries to 0.54 3.06 3 represents 21% improvement over FY12 2.5 2.35 2.10 2 1.5 1.31 0.95 Common Health and Safety 1 0.78 0.68 management system will help to 0.54 0.5 apply best practices across Tata
Slide 4: Group Financial Highlights
Group Financial Highlights First Quarter Ended 30th June, 2012 Deliveries (MT) Turnover (US$ Mn) 6.2 6,112 6.1 6,080 5.7 5,933 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 EBITDA (US$ Mn) PAT* (US$ Mn) 912 961# 615 644 78 107 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 # Profit After Tax in Q
Slide 5: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Business Outlook 5
Slide 6: Global Market Environment
Global Market Environment PMI’s for India and SEA countries Indian passenger vehicle production 400 60 Number of cars *1000 (LHS) 60% y/y % (RHS) 300 55 40% Expansion 200 20% 50 Contraction 100 0% 45 India Indonesia Singapore Vietnam 0 -20% 40 2010 2011 2012 2010 2011 2012 2013 Source: Oxford Econom
Slide 7: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Business Outlook 7
Slide 8: Performance of Tata Steel India
Performance of Tata Steel India First Quarter Ended 30th June, 2012 Production (MT) Deliveries (MT) 1.77 1.77 1.75 1.74 1.59 1.59 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 1,704 1,601 567 1,413 535 502 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 8 Conversi
Slide 9: Performance of Tata Steel India
Performance of Tata Steel India Longs, Flats and FAMD Long Products Flat Products 769 690 999 712 896 882 737 693 635 726 697 712 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 Long Products sales (in kt) Net Realizations (in US$/tonne) Flat Products sales (in kt) Net realizations (in US$/tonne) Fe
Slide 10: Performance of South East Asia
Performance of South East Asia First Quarter Ended 30th June, 2012 Production (MT) Deliveries (MT) 0.78 0.74 0.73 0.72 0.69 0.63 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 19 606 16 17 599 567 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 10 Conversion Rate U
Slide 11: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Business Outlook 11
Slide 12: Performance of Tata Steel Europe
Performance of Tata Steel Europe First Quarter Ended 30th June, 2012 Production (MT) Deliveries (MT) 3.81 3.55 3.55 3.53 3.21 3.30 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 Turnover (US$ Mn) EBITDA (US$ Mn) 3,692 3,582 3,669 343 111 26 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 12 Convers
Slide 13: Tata Steel Europe – An Update
Tata Steel Europe – An Update • Selling price recovery not sustained in the latter part of Q1 FY13, reflecting Cost-Price confidence concerns caused by European sovereign debt crisis Squeeze • Positive cost/price impact leading to increased EBITDA between Q4 FY12 and Q1FY13 • Operational stability s
Slide 14: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Business Outlook 14
Slide 15: Group Financial Performance – Q1 FY13
Group Financial Performance – Q1 FY13 Figures in US $ Mn unless specified Q1 FY13 Q1 FY12 Tata Steel Tata Steel SE Tata Steel Tata Steel India Europe Asia Group (*) Group (*) Deliveries (MnT) 1.59 3.21 0.72 5.68 6.05 Turnover 1,601 3,669 606 6,080 5,933 EBITDA 502 111 17 644 912 EBITDA Margin (%) 31
Slide 16: Net Debt Movement and Liquidity Position
Net Debt Movement and Liquidity Position Net debt movement (US$ mn) 1508 US$ mn 482 11734 10768 (1024) 9711 9303 (2023) (408) Gross Debts Loans takenLoans repaid Reval. Gross Debts Cash & Cash Net Debts Forward Underlying Mar-12 Impact June-12 Eq June 12 June-12 Covers Net Debt June 12 Liquidity pos
Slide 17: Pensions Management – European Operations
Pensions Management – European Operations Figures in £ mn Jun-11 Mar-12 Jun-12 Total Scheme Retirement Benefit Assets 16,401 17,166 16,891 Total Scheme Retirement Benefit Liabilities (16,051) (16,955) (16,853) Net Pension Surplus (BSPS &SPH) 350 211 38 Pension Asset Composition – BSPS £ mn 2% 2% 2%
Slide 18: Agenda
Agenda Introduction and Consolidated Highlights Global Business Environment Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Business Outlook 18
Slide 19: Business Outlook
Business Outlook Global steel capacity utilisation remains around 80%, implying significant overcapacity and downward pressure on steel prices Raw material prices are falling sharply – should help non-integrated steel manufacturers Steelmakers are attempting price increases, however falling ra
Slide 20: Thank You
qb TATA Thank You TATA STEEL 20