Tata Steel Limited · NSE:TATASTEEL
Tata Steel — FY2020 Earnings Presentation
26 slides from Tata Steel's earnings presentation, Jun 30, 2020
Slide 1: Submission of presentation to stock exchanges
June 30, 2020 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001, Maharashtra, India. Mumb
Slide 2: Results Presentation
Results Presentation Financial quarter and full year ended March 31, 2020 June 29, 2020 1
Slide 3: Safe harbor statement
Safe harbor Statements in this presentation describing the Company’s performance may statement 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. Impo
Slide 4: Committed towards excellence in Safety and Sustainability
Committed towards excellence in Safety and Sustainability Safety Sustainability Key sustainability targets Recognition by external agencies ▪ Inaugurated ‘Suraksha Kendra’ - comprising Safety Leadership Development Centre and Tactical ▪ Ranked 4th in global Centre - designed to improve steel sector
Slide 5: Improving quality of life of our communities
Improving quality of Livelihood Education life of our communities ▪ 30 Model schools: 22 schools ▪ Skill development: 5,504 youth completed, 19 handed over enrolled, 2,297 employed/self employed ▪ 1000 Schools Projects: 14,000+ out of school children brought back to schools ▪ Self Help Groups: Over
Slide 6: Exceptionally uncertain macro environment
Exceptionally uncertain macro environment ▪ COVID-19 outbreak and widespread mobility restrictions severely impacted economic activities Covid-19 outbreak led to sever mobility restrictions across the world ▪ Industries are estimated to have lost about 2-3 months output with disruption in global val
Slide 7: Business environment in India and Europe remains fluid
Business environment in India and Europe remains fluid ▪ Imposition of nationwide lockdown in India severely India steel volumes (mn tons) EU market supply impacted manufacturing activities and steel using Exports (RHS) Imports (mn tons) Crude Steel Production 16 30% industrial sectors, leading to a
Slide 8: Responding to the pandemic
Responding to the pandemic Employees ▪ Regular sanitization/disinfection of all control rooms; shop floors, offices, vehicles and cafeterias ▪ Social distancing and hygiene measures; thermal scanning at all entry and exit points ▪ 24X7 COVID-19 Helpline for employees across all locations ▪ Extended
Slide 9: Recalibrating to the new environment
Recalibrating to the new Optimized plant operations; environment curtailed utilization levels in April before ramping up from May 01 Managing risks at physical assets and across the supply chain 02 Ramped up mining operations to reduce iron ore buy 03 Exports ramped up to counter closure of Indian m
Slide 10: Recalibrating to the new environment: liquidity
Recalibrating to the new Aggressive liquidity environment management aimed at cash neutral operations 07 Long term funds raised to address potential business disruptions 08 Ample liquidity of Rs.17,745 crores with over Diversified funding source Rs.11,549 crores of cash and cash equivalents 4% Long
Slide 11: Key performance highlights
Key performance highlights Consolidated1 Steel Production Consolidated EBITDA India2 Crude Steel Production India2 EBITDA FY20 28.5 mn tons FY20 Rs.17,735 crores FY20 18.2 mn tons FY20 Rs.17,650 crores FY19 27.1 mn tons FY19 Rs.29,770 crores FY19 16.8 mn tons FY19 Rs.23,934 crores Iron Ore mined Pan
Slide 12: Consolidated financial performance
Consolidated (All figures are in Rs. Crores unless stated otherwise) 4QFY20 3QFY20 4QFY19 FY20 FY19 financial Production (mn tons)1 7.37 6.99 7.21 28.46 27.11 performance Deliveries (mn tons) 6.50 7.31 7.52 26.68 26.80 Total revenue from operations 33,770 35,520 42,424 1,39,817 157,669 Raw material
Slide 13: Consolidated Adjusted EBITDA movement
Consolidated Adjusted ₹ Crores EBITDA1 528 movement 1,635 220 4,869 ▪ Selling results reflects sequentially better steel prices at Tata Steel India 283 ▪ Lower costs across geographies driven by lower 2,643 raw material prices ▪ Volume/mix impact primarily due to better product mix Adjusted Selling
Slide 14: Consolidated debt movement
Consolidated Rs. Crores Debt movement 1,057 116,328 5,124 280 2,157 109,867 3,922 955 5,239 1 2,845 828 104,628 11,549 104,779 100,816 and Others and Others Net Debt Gross Debt Gross Debt Gross Debt Acquisiton of UML's Cash, Bank & new leases new leases as per IndAS 116 Loan movement Loan movement A
Slide 15: Tata Steel India: production and delivery volumes
Tata Steel India1: ▪ FY20 Crude steel production grew by 8%YoY with ramp up at TSBSL and acquisition of Usha Martin’s Steel business production and by TSLP; deliveries grew by 4%YoY to 16.97 mn tons. Tata Steel retained the position of largest steel company in delivery volumes India ▪ Branded Produc
Slide 16: Tata Steel India business segments
Tata Steel India business segments Automotive & Special products Branded products and Retail ▪ >35% share in 5 out of 10 new passenger cars launched in FY20 amid ▪ ECA segment deliveries grew to 3.56 mn tons with micro market focus in intense competition in weak market panels, general engineering an
Slide 17: Tata Steel Standalone: Financial performance
Tata Steel (All figures are in Rs. Crores unless stated otherwise) 4QFY20 3QFY20 4QFY19 FY20 FY19 Standalone: Total revenue from operations 14,211 15,262 19,130 60,436 70,611 Financial Raw material cost1 4,338 4,210 5,534 18,970 21,648 performance Change in inventories (980) 1,326 1,170 (564) (554)
Slide 18: Tata Steel Standalone: Adjusted EBITDA movement
Tata Steel Standalone: ₹ Crores Adjusted EBITDA ▪ Selling results reflects 294 movement sequentially improvement in 814 168 steel realizations ▪ Cost improvement is primarily 749 3,661 due to lower coal consumption 3,470 cost due to lower prices and reduction in coke rates ▪ Volume/mix impact primar
Slide 19: Tata Steel Standalone: Key sustainability parameters
Tata Steel Standalone: Key sustainability parameters Coke Rate (kg/tcs) Specific Energy Intensity (Gcal/tcs) Specific Water Consumption (m3/tcs) 7.29 Good 5.54 443 434 Good 6.31 Good 6.27 6.01 399 4.75 5.77 381 5.68 5.67 5.67 5.63 367 4.39 360 4.27 353 352 348 4.14 3.83 3.68 3.27 2.80 FY15 FY16 FY17
Slide 20: Tata Steel BSL: Consolidated performance
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 4QFY20 3QFY20 4QFY19 FY20 FY19 Consolidated Crude Steel production (mn tons) 1.12 1.15 1.03 4.46 3.58 performance Deliveries (mn tons) 0.98 1.26 1.14 4.14 3.57 and key updates Total revenue from operations 4,274 5,038 5,517 18,1
Slide 21: Tata Steel Long Products: Consolidated performance
Tata Steel Long (All figures are in Rs. Crores unless stated otherwise) 4QFY20 3QFY20 4QFY19 FY20 FY19 Products: Production (‘000 tons) Consolidated - Crude Steel 156 157 - 585 - performance - Sponge 201 221 115 765 436 and key updates Deliveries (‘000 tons) - Steel 137 162 - 511 - - Sponge 164 187
Slide 22: Tata Steel Europe: performance and key updates
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 4QFY20 3QFY20 4QFY19 FY20 FY19 performance and key updates Liquid Steel production (mn tons) 2.64 2.51 2.73 10.26 10.30 Deliveries (mn tons) 2.39 2.35 2.57 9.29 9.64 Total revenue from operations 13,588 13,821 16,568 55,939 6
Slide 23: Business Outlook
Business Outlook ▪ Global steel demand is expected to contract in FY21 amid COVID-19 crisis and mobility restriction measures adopted by many countries Steel ▪ India steel demand is expected to improve gradually with phased removal of lockdown and increase in the government Demand spending; improved
Slide 24: Annexure I: Standalone QoQ variations
Annexure – I: Rs Crores 4QFY20 3QFY20 Key Reasons Standalone QoQ Income from operations 13,699 14,817 Due to lower deliveries partially offset by improved realisations Variations 513 445 Primarily due to higher income from town & medical services and Other operating income sale of scrap along with h
Slide 25: Annexure II: Consolidated QoQ variations
Annexure – II: Rs Crores 4QFY20 3QFY20 Key Reasons Consolidated Income from operations 32,867 34,774 Primarily due to lower deliveries in India and lower realisation at TSE QoQ Variations Other operating income 903 746 Primarily at Standalone and Tata Steel Global Procurement Raw materials consumed
Slide 26: Investor relations contact
Investor relations contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com 25