Tata Steel Limited · NSE:TATASTEEL
Tata Steel — 9M FY11 Earnings Presentation
15 slides from Tata Steel's earnings presentation, Feb 15, 2011
Slide 1: Nine Monthly Financial Results: 31st December 2010
Mumbai, 15th Feb’11 Nine Monthly Financial Results : 31st December 2010 Press Meet Presentation
Slide 2: Agenda
Agenda Safety Performance Key Highlights Global Environment Group Financial Performance Recent Developments Odisha Project Business Outlook 2
Slide 3: Safety Performance – Tata Steel Group
Safety Performance – Tata Steel Group Lost Time Injury Frequency (LTIF) Lost time injury frequency rate is 0.83 in 3.5 Apr- Dec’10, a 13% improvement over 3.06 FY10 3 3 tragic fatalities to employees/contractors 2.5 2.35 2.1 in Q3 2 Renewed attention to leadership setting and 1.5 1.31 monitoring sta
Slide 4: Group Financial Highlights – 9M Ended 31st Dec'10
Group Financial Highlights – 9M Ended 31st Dec’10 Deliveries Mn T Turnover US$ Mn 20.00 17.00 20,000 16,754 19,000 18.00 17.30 18,000 16.00 16,000 6.02 Q3 Q3 6,508 14.00 Q3 5.68 14,000 Q3 5,862 12.00 12,000 10.00 10,000 8.00 Q2 6.05 Q2 5.88 Q2 Q2 6,409 8,000 5,681 6.00 6,000 4.00 4,000 2.00 Q1 5.23
Slide 5: Raw materials and steel prices
Raw materials and steel prices Iron ore fines, US$/tonne HRC spot price, US$/tonne 250 1,400 200 150 India (Mumbai) Chinese domestic (incl VAT) 100 USA domestic (FOB Gulf) 1,200 Russia export (FOB Black Sea) 50 Germany domestic 0 Apr-07 Oct-07 Jan-08 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10
Slide 6: India and South East Asian steel market
India and South East Asian steel market Purchasing Managers Index – Industrialised Asia HRC spot prices, US$/tonne 70 Slowdown and destocking 900 India HRC (Mumbai) Chinese HRC (domestic) 60 800 East Asia import (CFR) 700 50 600 40 Singapore Renewed growth 500 South Korea 30 Japan 400 Taiwan 20 300
Slide 7: European steel market
European steel market Steel using sector output (index 2005 = 100) European Steel Service Centre Stocks (mt, months of supply Months supply 130 2.6 Mt 3.4 Stock levels 120 3.2 2.4 3.0 110 2.2 Months supply 2.8 100 2.0 2.6 90 2.4 Germany - machinery & equipment 1.8 80 2.2 UK - machinery & equipment 1
Slide 8: Group Financial Performance – Q3 FY11
Group Financial Performance – Q3 FY11 Figures in US $ Mn unless specified Tata Steel TS SE Asia Tata Steel Europe Group(*) Deliveries (Mnt ) 1.64 3.47 0.78 5.68 Turnover 1,655 4,013 653 6,508 EBITDA 634 88 (3) 755 EBITDA margin (%) 38.3 2.2 - 11.6 EBITDA / tonne (US$) 387 25 - 133 (*) Includes other
Slide 9: Group Financial Performance – 9M FY11
Group Financial Performance – 9M FY11 Figures in US $ Mn unless specified Tata Steel TS SE Asia Tata Steel Europe Group(*) Deliveries (Mnt ) 4.70 10.74 2.32 17.00 Turnover 4,710 12,089 1,839 19,000 EBITDA 2,049 591 59 2,774 EBITDA margin (%) 43.5 4.9 3.2 14.6 EBITDA / tonne (US$) 436 55 25 163 (*) I
Slide 10: Capital Raising Update
Capital Raising Update The company launched a 57 Mn equity shares Follow on Public Offer (FPO) on January19 The FPO was successfully completed on 21st January and raised Rs 3,477 Crs (US$ 778 Mn) from the capital market Capital Of the total FPO proceeds, Rs 1,875 Crs (US$ 419 Mn) will be used to par
Slide 11: Recent Developments
Recent Developments Tata Steel and Nippon Steel Corporation have signed a JV agreement (51:49) to set up India’s first JV with CAPL for production of 600,000 tpa of automotive cold rolled steel at Jamshedpur Nippon The JV will address the localization needs of Indian Automotive customers for high gr
Slide 12: Odisha Project – Project execution in progress
Odisha Project – Project execution in progress Ground preparation continues to progress at the project site in Odisha as the Company prepares to start construction work on the project Key activities undertaken: Project site secured with boundary wall and fence Batching Plant of M/s Larsen &Tubro in
Slide 13: Odisha Project – Project execution in progress
Odisha Project – Project execution in progress L & T BATCHING PLANT UNDER ERECTION BOUNDARY WALL & IM SECTION IN THE BACKGROUND GRADING WORK IN PROGESS AT SITE CIVIL WORK AT SINTER PLANT SITE SOIL TESTING AT THE BLAST FURNACE SITE 13
Slide 14: Business Outlook
Business Outlook Easing monetary conditions globally are driving commodity prices higher The global steel market is recovering, however most developed markets face a long recovery. Emerging markets, particularly India and China are expected to continue to have robust growth China is a major influenc
Slide 15: Thank You
qe TATA Thank You TATA STEEL