Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q4 FY2019 Earnings Presentation
25 slides from Tata Steel's earnings presentation, Apr 25, 2019
Slide 1: Results Presentation
Results Presentation Financial quarter and year ended March 31, 2019 April 25, 2019 1
Slide 2: Safe harbor statement
Safe harbor Statements in this presentation describing the Company’s performance may be statement “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. Impo
Slide 3: Committed towards excellence in Safety, Health & Sustainability
Committed towards excellence in Safety, Health & SAFETY HEALTH SUSTAINABILITY Sustainability ▪ Launched safety campaign to ▪ Covered ~7,000 employees ▪ Featured among top 7 reduce contractor related in refreshers training on first aid integrated steel companies injuries – ‘Zero Harm to & CPR to impr
Slide 4: A compelling investment case
A compelling Strong ▪ Strong and ‘best in class’ assets – Jamshedpur, Kalinganagar and Angul investment foundation ▪ Indian operations are at globally competitive cost position in India case ▪ Focus on Indian markets – best positioned to Current: 33 MTPA1 2025: 32 MTPA2 leverage India growth story ▪
Slide 5: Key performance highlights and updates
Key performance 4QFY19 – key performance indicators Increasing India footprint highlights and ▪ Indian operations contributed 63% out of ▪ Kalinganagar 5MTPA Phase II expansion is on track updates consolidated deliveries of 7.52 mn tons ▪ Tata Steel BSL – Merger to accelerate synergies and ▪ India d
Slide 6: Global macro and business environment
China Crude steel production and Global macro ▪ Global economic growth has slowed down Finished steel demand (mn tons) apparent steel demand1 (mn tons) and business 2017 2018 2019F 85 Crude Steel Production ▪ However, business sentiments and risk Apperant Steel consumption environment appetite are i
Slide 7: India macro and business environment
India macro ▪ Indian economic growth was modest in India steel production and India steel imports and exports and business consumption (mn tons) (mn tons) 4QFY19 Crude steel production environment 30 Apparent finished steel usage Imports Exports ▪ Apparent steel consumption grew by 28 3 27.4 26 27.1
Slide 8: Consolidated operational and financial performance
Consolidated (All figures are in Rs. Crores unless Consolidated Consolidated ex TSE1 operational stated otherwise) (Proforma) and financial 4QFY19 3QFY19 4QFY18 4QFY19 3QFY19 4QFY18 performance Production (mn tons)2 7.21 6.71 5.70 4.48 4.38 3.07 Deliveries (mn tons) 7.52 6.47 5.85 4.95 4.12 3.30 Tot
Slide 9: Consolidated operational and financial performance
Consolidated (All figures are in Rs. Crores unless stated otherwise) Consolidated operational FY19 FY18 and financial Production (mn tons)1 27.11 23.17 performance Deliveries (mn tons) 26.80 22.89 Total revenue from operations 157,669 124,110 Raw material cost2 60,877 46,137 Change in inventories (9
Slide 10: Consolidated adjusted EBITDA movement
Consolidated ₹ Crores Adjusted EBITDA1,2 367 movement 7814 ▪ Selling results reflects sequentially 998 7217 lower steel realizations across the 972 geographies 1740 ▪ Primarily due to lower expenses at Tata Steel Europe with resumptions of BF5 and Tata Steel Standalone ▪ Volume/mix impact due to hig
Slide 11: Tata Steel India: steel production and sales volumes
Tata Steel Crude Steel Production Volume (mn tons) ▪ Quarterly domestic sales volume jumped by 12%QoQ to 4.72 mn India1: Steel tons compared to 9%QoQ market growth production 4.48 4.38 ▪ Industrial Products and Projects and Branded Products and Retail and sales volumes increased by 25%QoQ and 17%QoQ
Slide 12: Tata Steel India: steel production and sales volumes
Tata Steel Crude Steel Production Volume (mn tons) ▪ Production grew by 35%YoY to 16.81 mn tons in FY19 with the India1: Steel acquisition of Tata Steel BSL and ramp-up at both Kalinganagar and 16.81 Tata Steel BSL production and sales 12.48 ▪ Sales volumes also jumped by 33%YoY to 16.26 mn tons; ga
Slide 13: Setting standards at multiple levels
Setting standards at Market leading branded portfolio Unparalleled Pan India reach multiple levels Branded products sales contributes1 Network1 of ~12000 dealers and 24 42.5% of total sales stockyards (6 hubs + 18 spokes) Market leader in Auto Steel Most enriched product mix First choice for new car
Slide 14: Creating sustainable value
Leadership position in chosen Creating Key business segments’ highlights segments1 sustainable Automotive ✓ Key suppliers of hi-tensile and auto galv products 47% value & Special ✓ Largest supplier of Skin Panels Automotive products 42% Branded ✓ Tata Tiscon sales crossed 1.40 mn tons 21% ECA* produ
Slide 15: Key sustainability parameters
Specific Energy Intensity (Gcal/tcs) Specific Water Consumption (m3/tcs) Key Coke Rate (kg/tcs) 23% reduction since FY14 6% reduction since FY14 41% reduction since FY14 sustainability parameters 455 443 6.02 6.01 5.58 5.54 381 360 348 352 4.39 3.83 3.68 5.77 3.27 5.67 5.67 5.68 FY14 FY15 FY16 FY17
Slide 16: Engaging with neighbouring communities and improving their quality of life
Engaging with TSL Standalone – CSR Spend (Rs. crores) neighbouring ▪ Back in school – 12,952 children benefitted communities and Education ▪ Child Free Labor Zones (CLFZ) – covered 1,667 315 villages improving their ▪ Jyoti fellowship felicitated – 3,323 meritorious students 232 quality of life 204
Slide 17: Standalone financial performance
Standalone (All figures are in Rs. Crores unless stated 4QFY19 3QFY19 4QFY18 FY19 FY18 financial otherwise) performance Total revenue from operations 19,130 17,174 16,281 70,611 60,519 Raw material cost1 5,534 5,828 4,211 21,648 17,525 Change in inventories 1,170 (928) 102 (554) 545 EBITDA 4,953 4,5
Slide 18: Standalone EBITDA movement
Standalone ₹ Crores EBITDA1 movement 153 4,872 - 774 4,875 ▪ Selling results reflects sequentially lower steel realizations 201 1,125 ▪ Lower employee costs; also 3QFY19 had higher on consumption of purchased pellets ▪ Volume/mix impact due to higher deliveries ▪ Others include higher export credit
Slide 19: Tata Steel BSL: performance and key updates
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 4QFY19 3QFY19 FY192 performance Crude Steel production (mn tons) 1.03 1.04 3.58 and key updates Deliveries (mn tons) 1.14 0.91 3.52 Total revenue from operations 5,517 4,889 18,376 Raw material cost1 2,752 2,866 9,847 Change in
Slide 20: Consolidated debt movement
Consolidated Debt movement Gross Debt Mar'18 92,147 Debt taken for BSL acquisition 16,413 Re-classification of an operating lease to 984 financial lease at BSL* New loans 4,219 FX Impact 4,662 Others 255 Gross Debt Sept'18 118,680 Offshore Debt reduction 10,167 SEA Debt De- 682 consolidation Note: C
Slide 21: Business Outlook
Business Outlook ▪ Global steel demand is expected to witness a gradual recovery, mainly driven by improving real estate demand conditions in China, however, uncertainty over the trade environment is still a Steel risk Demand ▪ India Steel demand to witness modest recovery with conclusion of general
Slide 22: Annexure I: Standalone QoQ variations
Annexure – I: Rs Crores 4QFY19 3QFY19 Key Reasons Standalone Income from operations 18,498 16,691 Primarily due to higher delivery volumes; partly offset by softness QoQ Variations in steel realisations Other operating income 632 483 Higher exports credit benefits Raw materials consumed 5,162 5,332
Slide 23: Annexure II: Consolidated QoQ variations
Annexure – II: Rs Crores 4QFY19 3QFY19 Key Reasons Consolidated Income from operations Primarily due to higher delivery volumes across India and Tata Steel QoQ Variations 41,186 38,086 Europe ; partly offset by softness in steel realisations Other operating income Higher exports credit benefits at I
Slide 24: Annexure III: Tata Steel Europe performance and key updates
Annexure – III: (All figures are in Rs. Crores unless 4QFY19 3QFY19 4QFY18 FY19 FY18 Tata Steel Europe stated otherwise) – performance Liquid Steel production (mn tons) 2.73 2.34 2.63 10.30 10.69 Deliveries (mn tons) 2.57 2.35 2.55 9.64 9.99 and key updates Total revenue from operations 16,568 15,85
Slide 25: Contact
Contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com 25