Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Tata Steel (Thailand) — Q1 FY20 Earnings Presentation
20 slides from Tata Steel (Thailand) Public's earnings presentation, Aug 15, 2019
Slide 1: Operating Results of Q1 FY20 (April – June)
Tata Steel (Thailand) Plc. welcomes Media Team Presentation: Operating Results of Q1 FY20 (April – June) August 15, 2019
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: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q1 FY20 Performance • Business Outlook 3
Slide 4: Corporate Citizenship: CSR Mission
Corporate Citizenship: CSR Mission Relationship with Community & Government Agencies Religion, Culture & Education Promotion • SCSC: Support building repair of Nong Nam Yen Community and • NTS: Cooperated with Bowin attended Takuan Mini Marathon Charity Run for restoring the Takuan Police Station fo
Slide 5: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q1 FY20 Performance • Business Outlook 5
Slide 6: Iron ore prices soar, Graphite electrode price stable
Iron ore prices soar, Graphite electrode price stable Iron Ore Price USD/T Iron ore,62% Fe,China,$/t, CFR ex-Australia • Iron ore prices hit their 140 2017 highest level in five years 120 2018 • Prices remain elevated 2019 100 and volatile after Brazil’s dam disaster in Jan’2019 80 60 40 Jan Feb Mar
Slide 7: Iron ore price saw steep increase in recent months
Iron ore price saw steep increase in recent months • Supply restrictions supporting global Iron Ore prices though finished steel demand remains muted, thereby adversely impacting profitability of steel companies • International scrap price remain strong on the back of high priced billets 7 Source: T
Slide 8: China steel: Production remain strong; PMI shrank
8 China steel: Production remain strong; PMI shrank PMI China Crude Steel Production (Million Ton) 53.0 120 Thousands 52.5 51.9 110 52.0 51.5 51.5 51.4 51.5 51.5 51.2 51.3 100 51.0 50.8 50.5 85 90 50.5 50.3 50.2 50.0 79 89 88 76 49.7 80 50.0 83 81 80 81 80 81 71 80 50.1 49.4 49.4 49.5 78 75 70 72 73
Slide 9: Rebar & Wire Rod production rates remain high in China
Rebar & Wire Rod production rates remain high in China Note: The above data is from Blast Furnace production route only • Risk of high exports from China if domestic demand slows down Source: TSL China Desk & Mysteel 9
Slide 10: Chinese Wire rod prices well below last year level
Chinese Wire rod prices well below last year level in spite of high raw material price China Domestic WR (US$/VAT) • Average price almost 60 USD pmt lower than last year 10 Source: TSL China Desk & Mysteel 10
Slide 11: Thailand Economy
Thailand Economy • Q1CY19 GDP growth hit a 4-year low of +2.8% YoY - due to decline in external demand which led to a contraction in goods & services exports and a further contraction in public investment. GDP growth forecast for CY19 is 3.3-3.5% • Private investment increased by 4.4%, supported by
Slide 12: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q1 FY20 Performance • Business Outlook 12
Slide 13: Volume improved over PY from domestic sales
Volume improved over PY from domestic sales Unit : ‘000 Ton Good Total sales Dom. Rebars + Cut & bend 305 299 181 282 166 140 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Dom. Wire Rods Export 49 82 83 39 75 36 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 13
Slide 14: Improved Value added products sales
Improved Value added products sales Unit : ‘000 Ton Good Seismic Rebar High Tensile Rebar 24 9 9 19 18 4 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Dom. Cut & Bend 14 13 13 Q1FY19 Q4FY19 Q1FY20 14
Slide 15: Spread management & tight operations resulted in improved financials
Spread management & tight operations resulted in improved financials Unit : Million THB Good Revenue from sales EBITDA 5,443 5,483 5,420 254 216 29 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Profit (Loss) before tax Profit (Loss) after tax 75 44 56 32 (117) (93) Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1F
Slide 16: Continuously improving operational KPIs
Apr'18 Apr'18 May'18 May'18 Jun'18 Jun'18 Jul'18 Jul'18 Aug'18 Aug'18 Sep'18 Sep'18 Oct'18 Oct'18 Nov'18 Nov'18 Dec'18 Dec'18 Jan'19 Jan'19 SP Yield (%)-SCSC Feb'19 Feb'19 Mar'19 Mar'19 Graphite Electrode EAF (Kg/t)-SISCO Apr'19 Apr'19 May'19 May'19 Jun'19 Good Jun'19 Good Apr'18 Apr'18 May'18 May'1
Slide 17: Update on transaction with HBIS
Update on transaction with HBIS • T S Global Holdings Pte. Ltd. (“TSGH”) and Hebsteel Global Holding Pte., a wholly owned subsidiary of HBIS Group Co. Ltd. ("HBIS") had entered into a share purchase agreement on 28th Jan 2019 to form a new company in which 70% equity shares were to be held by HBIS a
Slide 18: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q1 FY20 Performance • Business Outlook 18
Slide 19: Business outlook
Business outlook • Global steel demand is expected to remain weak due to broader economic weakness and trade barriers among the global economies • Raw material (Iron ore and Coal) prices expected to soften towards end of CY2019 due to improved supplies • Steel prices are expected to find support fro
Slide 20: Thank you for your attention
qp TATA STEEL (THAILAND) TATA Thank you for your attention TATA STEEL (THAILAND)
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