Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Tata Steel (Thailand) — Q3 FY2019 Earnings Presentation
23 slides from Tata Steel (Thailand) Public's earnings presentation, Feb 4, 2019
Slide 1: Tata Steel (Thailand) Plc. welcomes Media Team
Tata Steel (Thailand) Plc. welcomes Media Team Presentation: Operating Results of Q3FY19 (October – December 2018) February 4, 2019
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: Contents
Contents • Operating Performance of Q3FY19 – Corporate Citizenship – Update on Business Environment and Markets – Q3FY19 Performance – Business Outlook • Sale of Shares of TSTH by Major Shareholder 3
Slide 4: Pride and Success in Q3FY19
Pride and Success in Q3FY19 31 Oct. 2018: TSTH received “SET Sustainability Awards 2018” for Outstanding Sustainability and “Thailand Sustainability Investment Award 2018” from the Stock Exchange of Thailand. 7 Dec. 2018: TSTH received “Sustainability Report Award 2017” in 20 Dec. 2018: NTS won the
Slide 5: Mission on Corporate Social Responsibility
Mission on Corporate Social Responsibility Community Nearby Our Plants SISCO: “Painting for better safety in NTS: Gave drinking water to Bowin Emergency SCSC: supported the Islamic community communities” at Bann Mhor Train Station, Service, Chonburi Province for the campaign of for making merit in “
Slide 6: Contents
Contents • Operating Performance of Q3FY19 – Corporate Citizenship – Update on Business Environment and Markets – Q3FY19 Performance – Business Outlook • Sale of Shares of TSTH by Major Shareholder 6
Slide 7: Global capacity utilization
Global capacity utilization 2018 2017 80.0 2016 78.0 76.0 74.0 72.0 70.0 68.0 66.0 64.0 62.0 60.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Global crude steel output grew by 4.6% Y-o-Y in 2018 (Jan-Dec) reached 1,808.6 MT. • China’s crude steel production in 2018 reached 928.3 MT., up by 6.6
Slide 8: Sharp decline in international billet price since mid Oct.18
Sharp decline in international billet price since mid Oct.18 Scrap price followed trend since mid Dec.18. FOB (USD/mt) 550 500 Billet price dropped by approx. 70 USD/pmt since Oct.18 450 triggered by Turkey & Russia. 400 Vietnam & Malaysia followed 350 suit. 300 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Ap
Slide 9: China posted weakest factory growth in last months
China posted weakest factory growth in last 28 months PMI China Crude Steel Production (Million Ton) 53.0 120 Thousands 52.4 52.5 51.9 110 52.0 51.8 51.7 51.7 51.8 51.6 51.6 51.6 51.5 51.5 51.4 51.5 51.3 51.4 51.5 51.2 51.2 51.2 51.3 100 51.0 50.8 90 50.5 50.3 50.2 50.0 80 50.0 81 81 81 83 80 80 77
Slide 10: Thailand Economy
Thailand Economy • In Q3 2018, GDP expanded by 3.3% y-o-y, contracted from previous quarter following slow down in exports. • Private consumption and private investment showed improvement, public investment decreased. • Political instability may have an adverse impact on Thai economy which is largel
Slide 11: Long products steel scenario in Thailand
Long products steel scenario in Thailand Unit : ‘000 tons 5,174 5,242 2,446 1,987 1,752 1,534 1,630 1,404 1,419 1,469 1,332 1,418 1,211 868 1,186 1,794 1,458 1,080 1,025 1,155 1,131 3,600 2,410 3,587 2,619 780 862 843 758 725 583 676 883 682 953 674 633 732 750 732 569 504 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: Contents
Contents • Operating Performance of Q3FY19 – Corporate Citizenship – Update on Business Environment and Markets – Q3FY19 Performance – Business Outlook • Sale of Shares of TSTH by Major Shareholder 12
Slide 13: Sales Volume Q3FY19
Sales Volume Q3FY19 ▲Good Unit : Tons Total sales Domestic Rebars + Cut & Bend 301,800 287,900 175,500 280,000 164,400 156,600 Q3 FY18 Q2 FY19 Q3 FY19 Q3 FY18 Q2 FY19 Q3 FY19 Domestic Wire Rods Export 93,100 88,100 25,200 25,700 87,200 20,500 Q3 FY18 Q2 FY19 Q3 FY19 Q3 FY18 Q2 FY19 Q3 FY19 13
Slide 14: Sales Volume 9MFY19
Sales Volume 9MFY19 ▲Good Unit : Tons Total sales Domestic Rebars + Cut & Bend 901,300 524,400 849,500 460,600 9M FY18 9M FY19 9M FY18 9M FY19 Domestic Wire Rods Export 257,700 257,000 100,000 69,300 9M FY18 9M FY19 9M FY18 9M FY19 14
Slide 15: Value Added Products Sales 9MFY19
Value Added Products Sales 9MFY19 ▲Good Unit : Tons Seismic Rebar High Tensile Rebar 71,200 15,500 59,600 10,100 9M FY18 9M FY19 9M FY18 9M FY19 Cut & Bend 51,500 44,500 9M FY18 9M FY19 15
Slide 16: Financial Performance Q3FY19
Financial Performance Q3FY19 ▲Good Unit : Mn THB Net sales EBITDA 5,822 5,743 5,475 478 234 24 Q3 FY18 Q2 FY19 Q3 FY19 Q3 FY18 Q2 FY19 Q3 FY19 Profit (Loss) before tax Profit (Loss) after tax 240 287 51 67 (196) (179) Q3 FY18 Q2 FY19 Q3 FY19 Q3 FY18 Q2 FY19 Q3 FY19 16
Slide 17: Financial Performance 9MFY19
Financial Performance 9MFY19 ▲Good Unit : Mn THB Net sales EBITDA 16,740 1,048 16,137 474 9M FY18 9M FY19 9M FY18 9M FY19 Profit (Loss) before tax Profit (Loss) after tax 487 379 (55) (72) 9M FY18 9M FY19 9M FY18 9M FY19 17
Slide 18: Contents
Contents • Operating Performance of Q3FY19 – Corporate Citizenship – Update on Business Environment and Markets – Q3FY19 Performance – Business Outlook • Sale of Shares of TSTH by Major Shareholder 18
Slide 19: Business Outlook
Business Outlook • China export offers are stable just now. Need to watch after Lunar New Year. • Vietnam and Malaysia offering billets and low carbon wire rods at competitive prices • Customers and Dealers are on wait and watch situation. Political stability after general elections key to improve b
Slide 20: Contents
Contents • Operating Performance of Q3FY19 – Corporate Citizenship – Update on Business Environment and Markets – Q3FY19 Performance – Business Outlook • Sale of Shares of TSTH by Major Shareholder 20
Slide 21: Sale of Shares of TSTH by Major Shareholder
Sale of Shares of TSTH by Major Shareholder Signed Agreement between TSGH & HBIS Group About HBIS Group Tata Steel Global HBIS Group was established on June 30, 2008 by the Holdings Pte. Ltd. merger of Tangshan Iron and Steel Group and Handan Iron (TSGH) signed and Steel Group of Hebei Province. HBI
Slide 22: Sale of Shares of TSTH by Major Shareholder
Sale of Shares of TSTH by Major Shareholder Current A wholly After Sale of Shares A wholly owned Hebsteel Tata Steel owned subsidiary subsidiary of HBIS Global Global of Tata Steel Group in Holding Holding Limited in China India 70.0% 30.0% (Mandatory Tender Offer) Tata Steel Global NEW JV CO. Other
Slide 23: Thank you for your attention
qp TATA STEEL (THAILAND) TATA Thank you for your attention TATA STEEL (THAILAND)
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