Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q2 FY2025 Earnings Presentation
35 slides from Tata Steel's earnings presentation, Nov 6, 2024
Slide 1: Tata Steel Results Presentation
Tata Steel Results Presentation Tata Steel Results Presentation Financial quarter ended 30th September 2024 Financial quarter ended 30th September 2024 November 06, 2024 November 06, 2024 1
Slide 2: Tribute to Ratan N Tata
TATA STEEL ## WeAlsoMakeTomorrow RATAN N TATA 28.12.1937 - 09.10.2024 TATA Mr. Ratan Tata was a visionary leader whose contributions transformed not just our Company but the entire nation. His legacy of innovation, integrity and philanthropy will forever be a beacon for us. Mr. Tata's commitment to
Slide 3: Safe harbour statement
Safe harbour statement 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. Imp
Slide 4: We are committed to 'Zero Harm'
We are committed to ‘Zero Harm’ Journey towards excellence in Safety & Health of employees1 Digital enabled Safety Process Safety Behavioral Safety Occupational Health Safety command centre Cross functional audits on Training on risk perception Wellness recognition inaugurated at Meramandali safety
Slide 5: Improving quality of life of our communities
Improving quality of life of our communities Social capital and scalable change models to enable deep societal impact Rural & Urban Education Public Health & Nutrition Grassroots Sports 23 lakh+ 21,000+ out of school children 90% redressal rate in high-risk cases 12,300+ children and youth engaged l
Slide 6: Strategic Update
5 MTPA Blast Furnace commissioned at Kalinganagar site in September 2024 Strategic Update
Slide 7: Tata Steel is focused on creating sustainable value
Tata Steel is focused on creating sustainable value Leadership in Consolidate Leadership in Leadership in Robust Become technology and position as global Sustainability India financial health future ready digital cost leader 7
Slide 8: Sustainability is at the core of our strategy
Sustainability is at the core of our strategy Route and pace of decarbonisation being calibrated across geographies Committed to Transitioning to Committed to responsible greener 35 – 40% emission capacity growth steelmaking reduction by 2030 Our ESG goals underpin the focus areas Leadership in Sust
Slide 9: India: Piloting emerging technologies to reduce emissions
India : Piloting emerging technologies to reduce emissions Process improvement Carbon direct avoidance Carbon Capture & Utilisation Hisarna EasyMelt COG Injection Leadership in Sustainability » Use of lower quality raw material » Facilitate continuation of blast » Improved efficiency of blast & recy
Slide 10: UK: Pursuing transition to reduce emissions
UK: Pursuing transition to reduce 50 mn tons CO2e over a decade Journeying towards a sustainable future Multiple intiatives to aid EAF to be operational by 2027 - 28 affected employees Safely decommissioned BF#5 in 1st week of Voluntary Redundancy Transition Board setup July and BF#4 in September 20
Slide 11: Netherlands: Committed to achieve 40% CO2e reduction by 2030
Netherlands: Committed to achieve 35 – 40% CO2e reduction1 by 2030 Commenced discussions with the Dutch government for decarb support Targeted research for green transition : Government support is key Optimisation of pellet characteristics for DRP - EAF Phase 1 of decarbonising operations » Shutdown
Slide 12: India steel remains a bright spot aided by the economic growth cycle
India steel remains a bright spot aided by the economic growth cycle India steel demand forecast (in mn tons) Key Trends ~200 136 590 million Rs 143 trillion FY24 FY25e FY26e FY28e FY30e Expected population to live in Expected Investments by India Indian cities by 2030 towards its infrastructure by
Slide 13: Tata Steel is scaling up in India to capitalise on growth opportunity
Tata Steel is scaling up in India to capitalise on growth opportunity Investments set to drive sector leading returns 2x 40 Flats (A) ~21.2 MTPA* ~27 MTPA capacity growth in India Longs (B) ~5.4 MTPA ~13 MTPA Dominant manufacturing base 0.85 Crude Steel ~26.6 MTPA* 40 MTPA (A+B) EAF 5 ~42 MTPA 60 -
Slide 14: Commissioned India's largest blast furnace at Kalinganagar
Commissioned India’s largest blast furnace at Kalinganagar Kalinganagar expansion to enhance product mix and cost savings 5 MTPA expansion with State-of-the-art Phase 2 Kalinganagar expansion to aid meet Features evolving needs in chosen segments ▪ Best-in-class technology ▪ Key facilities in Phase
Slide 15: Embracing Digital and Technology to create and unlock value
Embracing Digital and Technology to create and unlock value Tata Steel Centres for Innovation : Satellite R&D Centres to leverage national and global technology ecosystem IIT Madras, IIT-ISM Dhanbad, India India Mobility Mining & Mineral Processing Mobility Water Strategic areas Leadership in techno
Slide 16: Focus on consolidating position as a global cost leader
Focus on consolidating position as a global cost leader Strategic investment to augment cost leadership ▪ Focus on raw material » Scaling up iron ore mining in India and debottlenecking supply chain ▪ Optimisation of raw material related costs » Pellet capacity of ~14.6 MTPA*, blend of coal grades C
Slide 17: Financial Management to enable returns across cycle
Financial Management to enable returns across cycle ▪ Balance sheet management Total Shareholder Returns1 (%) » Optimise Capital Structure & Cost Tata Steel Nifty 50 Sensex » Target Net debt to EBITDA <2.5 – 3.0x across cycle » Proactive financing to drive flexibility and reduce costs 38 16 12 12 16
Slide 18: Becoming culturally future ready
Becoming culturally future ready Initiatives to reach new level of excellence Talent Preparedness Focus on Fostering a Become future ready for growth to productivity and Future Ready 40 MTPA restructuring Culture ✓ Talent integration ✓ Cost ✓ Culture of safety : post mergers competitiveness Zero Har
Slide 19: Business Update
Business Update Tata Steel Netherlands inaugurated decoiler and automated sheet packaging line at a steel service center, showcases focus on downstream
Slide 20: Global steel weighed by concerns about China despite stimulus
Global steel weighed by concerns about China despite stimulus ▪ Global steel prices diverged across key regions during the ▪ Raw material prices moderated during the quarter. Coking July – September quarter. US steel prices were up 5% coal prices declined by 14% while Iron ore prices moved while EU
Slide 21: India steel demand continued to grow while EU demand was subdued
India steel demand continued to grow while EU demand was subdued India Europe ▪ Indian apparent steel demand continued to grow despite ▪ EU steel demand continued to be weak. Manufacturing seasonal rains weighing on select segments PMI was at 45 in September, lowest reading for the year ▪ Steel impo
Slide 22: In 2QFY25, India sales were driven by 6% YoY rise in domestic deliveries
In 2QFY25, India sales were driven by 6% YoY rise in domestic deliveries Tata Steel India deliveries (mn tons) End use sectors Domestic Exports Auto and Retail : Individual Construction & ancillaries housebuilders Infrastructure 4.8 4.9 5.1 1.2 1.2 1.2 1.3 1.3 1.1 4.89 0.8 0.8 4.63 4.75 0.7 2QFY24 1
Slide 23: Auto: Consolidating the position of Preferred Steel Supplier
Auto: Consolidating the position of “Preferred Steel Supplier” Continuous Annealing Line (CAL), TSK ▪ Strong relationship with OEMs ▪ Enriched product offerings for continues to drive healthy sales emerging needs in future models Auto1 as % of total Share of hi-end deliveries products in Auto sales
Slide 24: Poised to double in retail and shaping construction via ready-to-use solutions
Poised to double in retail & shaping construction via ready-to-use solns. Focus on enhancing premium retail play Tata Tiscon Consistent growth Retail Sales driven by 2QFY25 20% 2QFY24 Leverage 11,000+ dealer base for New service offerings on Aashiyana, physical reach e-commerce platform Simplifying
Slide 25: Tata Steel Consolidated
Tata Steel Consolidated (All figures are in Rs. Crores Key drivers for QoQ change: 2QFY25 1QFY25 2QFY24 unless stated otherwise) Production (mn tons)1 7.69 8.00 7.31 ▪ Revenues: witnessed marginal decline of 2% primarily Deliveries (mn tons) 7.52 7.39 7.07 due to lower realisations in India and Neth
Slide 26: Consolidated 2QFY25 EBITDA stood at Rs 5,522 crores
Consolidated 2QFY25 EBITDA1 stood at Rs 5,522 crores ▪ Selling Result: primarily driven by lower 1,869 realisations in India and Netherlands 305 - 73 64 ▪ Cost Changes: were driven by decline in coking coal consumption cost across geographies 6,950 5,522 ▪ Volume/Mix: primarily driven by higher deli
Slide 27: Net debt stood at Rs 88,817 crores
Net debt stood at Rs 88,817 crores 1,301 5,006 99,392 10,575 124 92,961 88,817 Gross Debt Movement in Loan FX Impact Gross Debt Cash, Bank & Net Debt Jun'24 leases movement and Others Sep'24 Current Sep'24 Investments 2QFY25 Results Presentation 27
Slide 28: Key financial credit metrics
Key financial credit metrices EBITDA Margin (%)1 EBITDA / ton (Rs.)1 Interest Coverage Ratio (x)1,2 Gross & Net Debt (Rs crores) 26.2% 21,626 11.7 1,16,328 99,392 19.8% 88,501 84,893 87,082 1,04,779 75,561 11,358 88,817 8,752 5.2 77,550 13.4% 7,962 75,389 12.2% 12.0% 10,838 4.1 67,810 6,267 3.1 3.5
Slide 29: Annexures
Annexures Solar installations at Tata Steel Kalinganagar
Slide 30: Tata Steel Standalone: Key operating parameters
Tata Steel Standalone : Key operating parameters Coke Rate (kg/thm) Specific Energy Consumption (Gcal/tcs) Specific Fresh Water Consumption (m3/tcs) Good Good Good 365 5.95 357 3.20 348 348 5.85 339 2.84 2.74 2.44 2.37 5.77 5.68 5.63 FY21 FY22 FY23 FY24 1HFY25 FY21 FY22 FY23 FY24 1HFY25 FY21 FY22 FY
Slide 31: Tata Steel Standalone
Tata Steel Standalone1 (All figures are in Rs. Crores Key drivers for QoQ change: 2QFY25 1QFY25 2QFY24 unless stated otherwise) Production (mn tons) 5.06 5.01 4.91 ▪ Total Revenues: were marginally lower, with drop in Deliveries (mn tons) 5.11 4.94 4.82 realisations being partly offset by higher vol
Slide 32: Key operating parameters
Key operating parameters TSUK TSUK TSN Coke Rate (kg/thm) Specific Energy Consumption (GJ/tcs) CO2 Emission Intensity (tCO2/tcs) Good Good Good 25.1 356 23.3 2.33 23.1 23.1 22.8 340 337 2.18 2.16 2.15 2.14 20.9 20.4 20.2 324 19.5 18.5 1.81 311 1.78 1.77 1.76 1.75 300 298 291 286 279 FY21 FY22 FY23 F
Slide 33: Tata Steel Netherlands
Tata Steel Netherlands (All figures are in Rs. Crores Key drivers for QoQ change: 2QFY25 1QFY25 2QFY24 unless stated otherwise) Liquid Steel production (mn tons) 1.66 1.69 1.19 ▪ Deliveries: were higher by 2% and include volumes to UK operations. Excluding transfers to UK, External Deliveries (mn to
Slide 34: Tata Steel UK
Tata Steel UK (All figures are in Rs. Crores Key drivers for QoQ change: 2QFY25 1QFY25 2QFY24 unless stated otherwise) Liquid Steel production (mn tons) 0.39 0.68 0.76 ▪ Deliveries: were marginally lower due to subdued demand dynamics. The remaining blast furnace (BF #4) Deliveries (mn tons) 0.63 0.
Slide 35: Tata Steel Investor Relations
Tata Steel Investor Relations Investor enquiries ir@tatasteel.com