Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q2 FY2014 Earnings Presentation
29 slides from Tata Steel's earnings presentation, Nov 13, 2013
Slide 1: Results Presentation Second Quarter Ended 30th Sept 2013
November 13, 2013 Results Presentation Second Quarter Ended 30th Sept 2013
Slide 2: Disclaimer
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 could make a difference
Slide 3: Tata Steel Group – Health and Safety
Tata Steel Group – Health and Safety Lost Time Injury Frequency (LTIF) Reduction continues in lost time 3.5 injuries with H1 FY14 performance 3.06 3.0 12% better than FY13 2.5 2.35 2.10 2.0 Tragic fatal incidents in H1 has led 1.5 1.31 to detailed reviews to ensure 1.0 0.95 lessons learnt across
Slide 4: Tata Steel Group continues to focus on engaging with communities and improving quality of life
Tata Steel Group continues to focus on engaging with communities and improving quality of life India No. of adults turned literate 16,000 13,570 Infrastructure Education Ethnicity Development 5,600 Livelihoods Health (incl skills) (incl water) 2,555 2,295 Sports HDI Renewable FY'10 FY'11 FY'12 FY'13
Slide 5: Tata Steel Group continues to focus on engaging with communities and improving quality of life
Tata Steel Group continues to focus on engaging with communities and improving quality of life Europe • Community Partnership Programme at TSE is focused on environment, health and well- being and education • Europe-wide programme called ‘Future Generations’ was launched in April 2013 • “Neighbours
Slide 6: Agenda
Agenda Consolidated Highlights Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Key Developments 6
Slide 7: Steel Market Developments
Steel Market Developments Global crude steel production & capacity utilisation HRC spot price (US$/tonne) 140 100% 1,000 Crude steel production (Mt, LHS) Germany domestic 130 Capacity utilisation (%, RHS) Russia export (FOB Black Sea) 90% 900 120 USA domestic (Midwest) 110 80% 800 China (includes 17
Slide 8: Group Financial Highlights
Group Financial Highlights Second Quarter Ended 30th Sept, 2013 Deliveries Mn T Turnover Rs. Crore 36,645 6.48 36,645 6.07 6.08 34,133 32,805 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 EBITDA Rs. Crore PAT Rs. Crore 3,755 3,784 1,139 917 2,453 -364 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY1
Slide 9: Key Drivers
Key Drivers Second Quarter Ended 30th Sept, 2013 India Volumes steady despite seasonally soft quarter and weak macroeconomic condition Sequential improvement in underlying EBITDA/t Europe Stabilising operations led to best like-for-like quarterly production for five years Higher proportion o
Slide 10: Agenda
Agenda Consolidated Highlights Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Key Developments 10
Slide 11: Performance of Tata Steel India
Performance of Tata Steel India Second Quarter Ended 30th Sept, 2013 Production Mn T Deliveries Mn T 2.21 2.14 2.00 2.04 1.87 1.73 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 Turnover Rs. Crore EBITDA Rs. Crore 3,202 9,921 9,455 2,897 9,151 2,669 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 1
Slide 12: Performance of Tata Steel India
Performance of Tata Steel India Flats, Longs and FAMD 2.0 Flat Products 50,000 1.0 Long Products 50,000 39,159 39,137 36,228 36,196 40,000 37,138 40,000 35,579 1.5 0.8 30,000 0.80 30,000 1.44 0.77 0.77 1.37 1.36 1.29 0.72 0.71 20,000 0.68 20,000 1.0 0.6 1.07 1.01 10,000 10,000 0.5 0 0.4 0 Q2 FY13 Q1
Slide 13: Performance of South East Asia
Performance of South East Asia Second Quarter Ended 30th Sept, 2013 Production Mn T Deliveries Mn T 0.96 0.72 0.70 0.86 0.77 0.61 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 Turnover Rs. Crore EBITDA Rs. Crore 4,179 3,908 129 3,506 93 20 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 13
Slide 14: Agenda
Agenda Consolidated Highlights Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Key Developments 14
Slide 15: Performance of Tata Steel Europe
Performance of Tata Steel Europe Second Quarter Ended 30th September, 2013 Liquid Steel Production Mn T Deliveries Mn T 3.86 3.42 3.46 3.74 3.14 3.34 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY14 Turnover GBP mn EBITDA GBP mn 2,344 91 2,156 2,196 55 -5 Q2 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q1 FY14 Q2 FY
Slide 16: European operations
European operations EBITDA bridge Q2 FY2014 vs. Q1 FY2014 £ million 3 months to Jun 2013 £91m Central Manufacturing & Other 3 months £(63)m to Sep £(11)m 2013 Production £22m Volume Cost Changes £17m £55m £14m £2m Selling Result 16
Slide 17: European update
European update Improved Performance Operations continued to stabilise leading to highest like-for- like quarterly steel production in five years Increased production led to higher proportion of own steel make in finished product output, capturing more added value and resulting in improved y/y E
Slide 18: Agenda
Agenda Consolidated Highlights Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Key Developments 18
Slide 19: Group Financial Performance – Q2 FY14
Group Financial Performance – Q2 FY14 Figures in Rs. Crore unless specified Q2 FY14 Q2 FY13 Tata Steel Tata Steel SE Others Tata Steel Tata Steel India Europe Asia Group Group Deliveries (Mn T) 2.04 3.46 0.96 0.03 6.48 6.07 Turnover 9,921 21,149 4,179 1,396 36,645 34,133 EBITDA 3,202 554 129 -101 3,
Slide 20: Standalone Results – QoQ Variations
Standalone Results – QoQ Variations All figures in Rs. Crore Particulars Q2 FY14 Q1 FY14 Key Reasons Net sales 9,826 9,363 Higher volumes in flat segment and FAMD partly compensated by lower realisation and decrease in LP volumes Other operating income 95 92 Broadly similar Changes in inventories (1
Slide 21: Consolidated Results – QoQ Variations
Consolidated Results – QoQ Variations All figures in Rs. Crore Particulars Q2 FY14 Q1 FY14 Key Reasons Net sales 36,370 32,550 Higher deliveries in both Tata Steel India, Tata Steel Europe and SE Asia partly compensated by softer realisations Other operating income 275 255 Broadly similar Changes in
Slide 22: Net Debt Movement and Liquidity Position
Net Debt Movement and Liquidity Position Net debt movement 8,480 4,236 77,113 7111 4688 71,467 (7,071) 66074 64334 (6407) 62825 (12,779) (1,509) Gross Debt Loans Loans Forex Impact Gross Debt Loans Loans Forex Impact Gross Debt Cash & Net Debt Forward Underlying Mar 13 taken repaid June 13 taken rep
Slide 23: Pensions Status – European Operations
Pensions Status – European Operations IAS 19 (2008) Valuation Figures in £ mn Sep-12 Jun-13 Sep-13 Total Scheme Retirement Benefit Assets 17,132 18,010 18,096 Total Scheme Retirement Benefit Liabilities (17,098) (17,582) (17,854) Net Pension Surplus (BSPS &SPH) 34 428 242 Pension Asset Composition –
Slide 24: Agenda
Agenda Consolidated Highlights Performance of Indian and South East Asian Operations Performance of European Operations Group Financial Performance Key Developments 24
Slide 25: KPO Project Update
KPO Project Update TATA STEEL
Slide 26: Raw Material Projects
Raw Material Projects Benga Project, Mozambique About 0.5mt of hard coking coal shipped YTD 2013 Monsoons had disrupted shipments in the first half • Coking coal volume of about 800kt is expected in 2013 Phase II expansion delayed pending more clarity on rail and port capacity enhancements Dir
Slide 27: Business Outlook
Business Outlook India: Weak macroeconomic conditions may affect demand from steel consuming sectors Rupee depreciation is helping to restore balance in the market Long products is undergoing a sixty day planned shutdown from September – overall volume growth will be healthy in FY14 Europe:
Slide 28: Thank You
qp TATA Thank You TATA STEEL 28
Slide 29: Contact Information
Contact Information For investor enquiries contact: For media enquiries contact: Samita Shah Chanakya Choudhary Tel: +91 22 6665 7371 Tel: +91 11 2332 6421 / Email: samita.shah@tatasteel.com +91 98111 82122 Email: chanakya@tatasteel.com Subhra Kanti Das Bob Jones Tel: +91 22 6665 7382 Tel: +44 207 7