Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q3 FY2015 Earnings Presentation
27 slides from Tata Steel's earnings presentation, Feb 6, 2015
Slide 1: Results Presentation
Results Presentation Third Quarter Ended 31st December 2014 6th February 2015
Slide 2: Disclaimer
Tata Steel Slide 2 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 could differ materially from those expressed or implied. Important factors that coul
Slide 3: Tata Steel Group – Health and Safety
Tata Steel Slide 3 Tata Steel Group – Health and Safety Lost Time Injury Frequency (LTIF) 3.5 3.06 3 2.5 2.35 2.10 2 1.5 1.31 0.95 1 0.78 0.68 0.60 0.56 0.43 0.5 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 9M FY15 Reduction continues in lost time injuries with 9MFY15 performance 22% better than
Slide 4: Tata Steel continues to focus on engaging with communities and improving quality of life
Tata Steel Slide 4 Tata Steel continues to focus on engaging with communities and improving quality of life India Europe Primary health care services delivery to more than 3 1,000 people participated in the Tata Steel Richard lakh people in areas of operation through static and Burton 10km chari
Slide 5: Financial Performance
TATA Financial Performance TATA STEEL
Slide 6: Financial Highlights
Tata Steel Slide 6 Financial Highlights Quarter Ended 31st December’14 Deliveries Turnover 6.38 6.30 Mn T 36,736 33,633 Rs Crore 0.02 0.07 1,347 1.09 0.80 4,537 1,506 2,831 3.19 3.31 20,709 19,399 2.07 2.13 10,143 9,897 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 India Europe SE Asia Others India Europe SE Asia
Slide 7: Financial Performance
Tata Steel Slide 7 Financial Performance Quarter Ended 31st December’14 Figures in Rs. Crore unless specified Q3 FY15 Q2 FY15 Q3 FY14 Figures in Rs. Crore unless specified India Europe SE Asia Others Group Group Group & Elimn Deliveries (Mn T) 2.13 3.31 0.80 0.07 6.30 6.50 6.38 Turnover 9,897 19,399
Slide 8: Debt Movement and Pension update
Tata Steel Slide 8 Debt Movement and Pension update Rs Crores 2,626 -844 363 84,298 -10,782 81,609 -773 204 81,040 1,113 82,822 73,517 -953 72,564 Gross Debt Loans Forex Gross Debt Loans Forex Gross Debt Loans Forex Gross Debt Cash & Net Debt Derivatives Underlying Mar 14 Movt impact Jun 14 Movt imp
Slide 9: Operating Performance: India and South East Asia
Operating Performance : India and South East Asia
Slide 10: India and SE Asia – Business environment
Tata Steel Slide 10 India and SE Asia – Business environment India GDP growth (QoQ) yet to signal positive momentum Steel demand flat: Lower government spending Liquidity crunch Lower rural consumption Imports rose sharply and the relative appreciation of the Indian rupee increased competi
Slide 11: Product-mix optimisation to stem adverse price movements
Tata Steel Slide 11 Product-mix optimisation to stem adverse price movements Steel sales (in kt) Higher deliveries despite flat markets 2,128 and surge in low priced imports 2,065 284 342 Sales to Auto segment increased by 664 742 20% yoy 850 774 Hi-End sales (Skin panel, Hi- 267 270 tensile,
Slide 12: South East Asia – Operational improvement ongoing
Tata Steel Slide 12 South East Asia – Operational improvement ongoing NatSteel Holdings Deliveries moderated due to China slowdown Profitability improved sequentially due to spread improvement and higher proportion of value added sales Strategy to focus on export markets, value added products
Slide 13: KPO Phase–1 project update
Tata Steel Slide 13 KPO Phase–1 project update Coke Ovens RMHS We have spent about Rs. 19,800 crores on the project by the end of Q3 FY’15 of which about Rs. 900 crores was spent in the third quarter We continue to engage with the local community to improve their livelihood, education, health an
Slide 14: Business Outlook
Tata Steel Slide 14 Business Outlook India Steel demand is expected to be subdued in the traditionally strong fourth quarter, amidst rising liquidity concerns Softening of the global commodity prices and surge in exports from China and Russia to intensify pressure on the domestic steel prices.
Slide 15: Operating Performance: Europe
Operating Performance: Europe
Slide 16: Europe – Business environment
Tata Steel Slide 16 Europe – Business environment PMIs for main steel-using sectors in EU Economic activity in the EU has been 70 gradually recovering. However, PMIs 60 Expansion suggest economic recovery continues 50 40 Contraction to struggle to gain momentum Automotive Machinery 30 Construction
Slide 17: EBITDA bridge Q3 FY2015 vs. Q3 FY2014
Tata Steel Slide EBITDA bridge Q3 FY2015 vs. Q3 FY2014 £ million Cost Production Central Manufacturing & Other 3 months to 150 Changes Volume £(16)m Dec 2014 £(16)m £19m 125 £167m £132m 3 months to Selling 100 Result Dec 2013 75 £87m £(109)m 50 25 0 (25) (50) EBITDA improved by more than 50% from
Slide 18: Financial and product mix improvements drive performance
Tata Steel Slide 18 Financial and product mix improvements drive performance Financial improvements continue Year-on-year EBITDA and EBIT improvement Improved spread from low levels due to lower input prices, plus benefit from enhanced product mix Continued focus on advanced high-value steels
Slide 19: Business outlook
Tata Steel Slide 19 Business outlook Steel demand is expected to have grown by +2.6% in 2014 according to Eurofer Modest EU demand growth expected in 2015 to continue in line with a mild rise in activity of the steel using sectors in the EU Imports are expected to remain on a high level, inclu
Slide 20: Key Developments
TATA Key Developments TATA STEEL
Slide 21: Raw Material Projects
Tata Steel Slide 21 Raw Material Projects Direct Shipping Ore Project, Canada Despatches re-commenced since August 2014 and 275 Kt has been dispatched by end of Q3 FY15. Wet Processing plant to be commissioned in Q2 2015 which will facilitate year-long operations Enhancement in iron reserves u
Slide 22: Regulatory update
Tata Steel Slide 22 Regulatory update Mines restarted across multiple locations Iron ore mines at Joda East, Katamati, Bamebari and Joda West in Odisha Iron ore mine at Noamundi in Jharkhand Sukinda Chromite mines in Odisha Mining operations and expansion of mining capacity in Khondbond co
Slide 23: Thank You
Tata Steel Slide 23 Thank You
Slide 24: Appendix
TATA Appendix TATA STEEL
Slide 25: Standalone Results – QoQ Variations
25 Standalone Results – QoQ Variations All figures in Rs. Crore Particulars Q3 FY15 Q2 FY15 Key Reasons Lower net realisation per tonne offset slightly higher sales volume; Lower Net sales 9,821 10,701 operations at FAMD Other operating income 76 84 At par with the previous quarter Changes in invent
Slide 26: Consolidated Results – QoQ Variations
26 Consolidated Results – QoQ Variations All figures in Rs. Crore Particulars Q3 FY15 Q2 FY15 Key Reasons Declined in India and lower volumes in Europe and South East Asia and Net sales 33,324 35,503 lower realisations in South East Asia Other operating income 309 274 At par with the previous quarte
Slide 27: Contact Information
Tata Steel Slide 27 Contact Information For investor enquiries contact: For media enquiries contact: Samita Shah Kulvin Suri Tel: +91 22 6665 7307 Tel: +91 657 664 5512 / Email: samita.shah@tatasteel.com +91 92310 52397 Email:kulvinsuri@tatasteel.com Ramvikas Nag Bob Jones Tel: +91 22 6665 0557 Tel: