Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Q2 FY16 Earnings Presentation
22 slides from Tata Steel (Thailand) Public's earnings presentation, Nov 19, 2015
Slide 1: Tata Steel (Thailand) welcomes Analysts and Bank Officials
Tata Steel (Thailand) welcomes Analysts and Bank Officials [Results Presentation : Financial quarter ending 30th September 2015] 19th November 2015 1
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 may differ materially from those directly or indirectly expressed, inferred or implied. Important facto
Slide 3: Content
Content • Corporate citizenship • Economic Scenario & Steel Business • Q2 FY16 Performance • Business Outlook 3
Slide 4: Safety and Environment
Safety and Environment Zero Lost Time Injury for 1 Year of TSTH SISCO plant achieved 1 years without LTI (in Oct 15) SCSC plant achieved 2 years without LTI (in May 15) NTS plant achieved 3 years without LTI (in Mar 15) Loss Time Injury CO2 Emission Frequency Rate (Tons per ton of crude steel) 1.31
Slide 5: Community Welfare & CSR
Community Welfare & CSR TSTH: Employees joined Employee’s Birthday Volunteering NTS: joined Tree planting activity for H.M. the Queen’s Activity of quarter 2 at Ban Rajawadee, home for the mentally Birthday Day. The activity was opened by the Chief handicapped children to offer necessary goods for d
Slide 6: Content
Content • Safety and Corporate citizenship • Economic Scenario & Steel Business • Q2 FY16 Performance • Business Outlook 6
Slide 7: Commodity Down Cycle
Commodity Down Cycle Wire Rod Price (US$/tonne) 1000 900 800 700 600 500 China 400 Ukraine 300 Russia 200 2010 2011 2012 2013 2014 2015 7
Slide 8: Elevated level of exports by China despite rising protectionism
Elevated level of exports by China despite rising protectionism by many steel consuming countries THB / USD 37 36 35 34 33 32 31 30 29 28 Jan-11 Apr-11 Jul-11 Jan-12 Apr-12 Jul-12 Jan-13 Apr-13 Jul-13 Jan-14 Apr-14 Jul-14 Jan-15 Apr-15 Jul-15 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 8
Slide 9: Business environment- lackluster recovery in Thailand
Business environment- lackluster recovery in Thailand Thai GDP 15.3% Thai GDP Thailand's household debt, % of disposable income Good Good 134.4% 137.6% 113.6% 99.2% 105.6% 6.2% 83.2% 88.0% 5.1% 5.3% 81.6% 74.4% 72.8% 3.0% 3.1% 2.7% 2.6% 2.80% 2.1% 0.7% 0.9% 1.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 10: Business environment (cont.)
Business environment (cont.) New Housing Demand Index Production Good 90 Good Import 18,032 80 20,000 Apparent steel use 16,91417,73017,339 18,000 70 57.50 14,01214,697 16,000 12,15412,71613,581 60 14,000 10,758 11,592 12,000 50 10,000 40 8,000 30 6,000 4,000 20 2,000 10 0 0 2015 (F) 2015(Jan-Aug) 2
Slide 11: Key market happenings
Key market happenings Exports which account for over 60% of Thailand’s GDP, declined 4.9% YoY (Jan-Aug’15) in value terms Domestic Rebar market demand stagnant due to monsoon and delayed government projects. Spread between East Asia Scrap-Rebar prices continued to decline. However, falling scr
Slide 12: Content
Content • Safety and Corporate citizenship • Economic Scenario & Steel Business • Q2 FY16 Performance • Business Outlook 12
Slide 13: Steady increase in value added rebar sales
Steady increase in value added rebar sales Unit : Tons Dom CAB 9,500 Dom DB SD40S (SEISMIC) 3,400 7,900 2,900 6,300 Good Good 1,300 FY15-Q2 FY16-Q1 FY16-Q2 FY15-Q2 FY16-Q1 FY16-Q2 Dom DB SD50 25,500 23,200 21,200 Good FY15-Q2 FY16-Q1 FY16-Q2 13
Slide 14: FY16 Quarter Sale
FY16 Quarter 2 Sale Unit : Tons Total Sales Dom Rebar + CAB 275,500 274,800 182,100 182,200 Good Good 270,500 172,200 FY15-Q2 FY16-Q1 FY16-Q2 FY15-Q2 FY16-Q1 FY16-Q2 Dom LCWR EXPORT Total 25,500 34,400 24,000 18,900 Good 24,600 Good 17,200 FY15-Q2 FY16-Q1 FY16-Q2 FY15-Q2 FY16-Q1 FY16-Q2 14
Slide 15: Financial Performance
Financial Performance Unit : MB Net Sales EBITDA 5,443 Good 249 Good 4,415 216 4,200 112 Q2FY15 Q1FY16 Q2FY16 Q2FY15 Q1FY16 Q2FY16 PBT PAT 60 Good 47 Good 30 11 Q2FY15 Q1FY16 Q2FY16 Q2FY15 Q1FY16 Q2FY16 15 (83) (88)
Slide 16: EBITDA Waterfall Q2 vs Q1
EBITDA Waterfall Q2 vs Q1 Unit : MB. 33 249 216 (287) 286 (8) 9 216 Q1'FY16 NR COGS Product Mix Vol Sub Total Stock & Forex Impact Q2'FY16 16
Slide 17: Gross debt reduced by 800 MB
Gross debt reduced by 800 MB Unit : MB. 6,040 (327) (144) (330) 5,239 Q1 Payment of Promissory LC Payment LT Loan Payment Q2 Notes Term Loan due 400 MB, equally spread over next four qtrs. Liquidity remains stable 17
Slide 18: Tight control on inventory has helped release cash
Tight control on inventory has helped release cash Unit : MB 3600 3300 3200 FY'15 Jun Sep
Slide 19: Status of Key initiatives
Status of Key initiatives SN Initiative Status 1 Procurement Lower cost scrap (Zinc and Tin bundles, bundle turning) volume around 6% as per Excellence plan. Increased return slag fine usage at SISCO. This increased domestic scrap base Program and reduced metallic cost. Savings till Q2 106 MB (
Slide 20: Content
Content Question Arising from Previous Meeting and Progress • Safety and Corporate citizenship • Economic Scenario & Steel Business • Q2 FY16 Performance • Business Outlook 20
Slide 21: Q3 FY16 Business Outlook
20 Q3 FY 16 : Business Outlook • GDP likely to grow by 2.0-2.5% in 2015 and will grow 2.5-3.0% in 2016 due to export contraction and drought. • Most mega projects deferred to next year. • Short term fiscal and financial policy from government to the low income people and Real estate sector will help
Slide 22: Thank you for your attention
Thank you for your attention 22
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