Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Debt Investor Presentation (2018)
19 slides from Tata Steel's debt investor presentation, 2018
Slide 1: Tata Steel Limited - Investor Presentation
Tata Steel Limited - Investor Presentation Stock Code: BSE - 500470 NSE- TATASTEEL Bloomberg-: TATA IN / TTST LI / TATA LX Reuters- TISC.BO / TISC.NS / TISCq.L 1 1
Slide 2: Disclaimer
Disclaimer Not for release, distribution or publication, whether directly or indirectly and whether in whole or part, into or in the United States, Australia, Canada or Japan or any other jurisdiction in which such release, distribution or publication would be unlawful. These materials have been pre
Slide 3: Agenda
Agenda Tata Steel Overview Key Credit Highlights Financial Overview 3
Slide 4: Tata Group: "Leadership with Trust"
Tata Group: “Leadership with Trust” A GLOBAL ENTERPRISE UNIQUE TRUST STRUCTURE One of India’s oldest non-sectarian philanthropic organisations Highly reputed Group in India with market Supporting and driving innovation in the areas like Natural Resources capitalization of ~USD 152bn(1) (29 listed en
Slide 5: Tata Steel Group: Overview
Tata Steel Group: Overview World’s 10th largest integrated steel player(1) Business Overview Global scale of Operations Geographically diversified steel producer – operations in 26 countries, commercial presence in 50+ countries India Crude Steel Capacity: 12.7 MTPA Current Crude steel product
Slide 6: Agenda
Agenda Tata Steel Overview Key Credit Highlights Financial Overview 6
Slide 7: Tata Steel Group: Credit Highlights
Tata Steel Group: Credit Highlights 1 Tata Steel: Flagship company of Tata Group 2 Riding the global steel upcycle and economic growth momentum in India 3 Focus on India growth through organic and inorganic routes 4 De-risking the business volatility with enhanced portfolio of value added products 5
Slide 8: Tata Steel – Flagship company of Tata Group
1 Tata Steel – Flagship company of Tata Group Tata Group Revenue (1) Tata Group Assets (1) Tata Steel Strategic and integral part of Tata Steel 17.4% 20.5% Tata Group Tata steel contribution to Tata Group is the largest Tata Group shareholder of Tata Steel with 31.35% stake in the company Equity
Slide 9: Tailwinds from global steel upcycle
2 Tailwinds from global steel upcycle Global economic recovery is now more broad Global Manufacturing PMI Commodity prices in an upcycle based 60 450 Global manufacturing is seeing an upturn supported by more visible signs of continued 55 400 investment recovery; China growth remains stable 50 3
Slide 10: Riding the economic growth momentum in India
2 Riding the economic growth momentum in India Positive domestic steel consumption Low per capital steel consumption – India continues to remain one of the fastest environment Significant headroom for growth growing major economies in the world (Kg of finished steel products per capita) 2016 Pol
Slide 11: Focus on India growth through organic and inorganic routes
3 Focus on India growth through organic and inorganic routes Demonstrated execution track record in India Growing share of India operations Tata Steel India: crude steel capacity (MTPA) On-going expansion of 6.3MT Capacity 2008: 28.1 MTPA 3.0 12.7 SEA 1.3 6% India 2.9 18% 3.1 1.8 5.0 1.0 6.6 4.0 3.0
Slide 12: Tata Steel Kalinganagar – A valuable India growth optionality
3 Tata Steel Kalinganagar – A valuable India growth optionality Overview Provides growth opportunity, scale and de-risks operations away from single location in India Lighter, high-tensile strength steel enabling expansion of customer universe to sectors including Defense, Oil and Gas, Lifting a
Slide 13: De-risking the business volatility with enhanced portfolio of value added products
4 De-risking the business volatility with enhanced portfolio of value added products Sales (MT) Segment Products Key highlights User Segments FY17 H1FY18 Automotive & 1.58 0.85 Market leader with 44%(1) market share Automotive segment Special products Strong customer relationships with auto co
Slide 14: De-risking the business volatility with enhanced portfolio of value added products
4 De-risking the business volatility with enhanced portfolio of value added products Increasing share of branded products Strong retail reach of ~3mn customers Brand value – Brand value – maturity Brand value – growth period: introductory period: period: focus on enhancing service capability & creat
Slide 15: Sustainable and highly efficient cost operations in India
5 Sustainable and highly efficient cost operations in India 1 Building sustainable business for the 2 Captive Raw Material & Resource 3 Process Efficiency future Efficiency(1) TCS/FTE/Year (2) Over USD 385mn invested on environmental 5.77 380 1,014 548 efforts in the last 10 years 840 720 455 CO
Slide 16: Strategic consolidation being pursued in Europe through JV with thyssenkrupp
6 Strategic consolidation being pursued in Europe through JV with thyssenkrupp Achieving Turnaround of Tata Steel Europe Sale / Restructuring of Businesses Resolution of Pension Liability Sustainable European Steel Business May 31, 2016 - European Long Products business sold Regulatory Apportion
Slide 17: Demonstrated track record of raising capital and financial flexibility
7 Demonstrated track record of raising capital and financial flexibility Ability to raise capital consistently at competitive terms Diversified sources of debt funding Diversified funding sources with strong relationships with over 40 Borrowings Mix (Consolidated – FY17) Maturity Profile (FY17)(
Slide 18: Agenda
Agenda Tata Steel Overview Key Credit Highlights Financial Overview 18
Slide 19: Financial Performance – Key P&L items
Financial Performance – Key P&L items Tata Steel Tata Steel (Consolidated) (Standalone) (USD mn) FY15 FY16 FY17 H1FY18 FY15 FY16 FY17 H1FY18 Deliveries (MT) 26.32 23.54 23.88 12.28 8.75 9.54 10.97 5.83 Revenue from Operations 22,105 16,290 17,987 9,718 7,135 6,541 8,159 4,388 EBITDA 1,952 1,218 2,60