Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q3 FY2021 Earnings Presentation
30 slides from Tata Steel's earnings presentation, Feb 10, 2021
Slide 1: Results Presentation
Results Presentation Financial quarter and nine months ended December 31, 2020 February 10, 2021 1
Slide 2: 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 3: Key performance highlights
Key performance highlights Revenue EBITDA Free cashflow Deleveraging ▪ Consolidated revenue ▪ Highest ever consolidated Generated free cash flow of ▪ Deleveraged sharply; Net improved 7%QoQ and EBITDA; up by 53%QoQ and Rs.20,588 crores in 9MFY21 debt reduced by Rs.18,609 11%YoY to Rs.39,594 crores 1
Slide 4: Committed towards excellence in Safety, Health & Sustainability
Committed towards excellence in Safety, Health & Sustainability Safety Health Sustainability ▪ Identified 1,200 potential hazards ▪ Completed COVID-19 ▪ Tata Steel Group, including Europe, has under safety campaign on ‘Moving Seroprevalence study covering been rated “A-“ in the ‘Leadership Band’ Mac
Slide 5: Our sustainability strategy: decarbonisation, water neutrality and circular economy
Our sustainability strategy: Committed to decarbonisation, water neutrality and circular economy practices Key highlights Key targets Decarbonization ▪ Significant reduction in emission intensity till FY20: i) >27% at TSJ ▪ Tata Steel India: since 2005, ii) >20% at TSK since FY17, iii) 5% TSE since
Slide 6: Our sustainability journey - Way forward
Our sustainability journey - Way forward ▪ Improving transparency and disclosures by engaging in sector initiatives for best practices, certification, traceability, Injection and policy advocacy; First Indian Company to adopt “Task Use of technology in Force on Climate-related Financial Disclosures”
Slide 7: Global macro environment
Global macro environment World trade volume and Manufacturing PMIs Steel demand and production (mn tons) ▪ Global economy continues to recover from COVID-19 Global Manufcaturing PMI World ex-China Steel Production pandemic; expected to grow 5.5%YoY in 2021 driven by 60 EU Manufacturing PMI 10% 100 C
Slide 8: Business environment in India and Europe
Business environment in India and Europe India: India key economic growth indicators* India steel volumes (mn tons) Capital Goods Infra/construction goods Exports (RHS) Crude Steel Production ▪ Economic activities witnessed a sustained recovery in Automotive Railways Consumer Durables 10 Finished st
Slide 9: Consolidated financial performance
Consolidated1 (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20 financial Production (mn tons)2 7.20 6.73 6.99 performance Deliveries (mn tons) 6.88 7.40 7.31 Total revenue from operations 39,594 37,154 35,520 Raw material cost3 13,713 12,104 13,754 Change in inventories (
Slide 10: Consolidated Adjusted EBITDA movement
Consolidated Adjusted ₹ Crores EBITDA1 ▪ Selling results reflect partial impact of sequential increase in steel movement 3,248 175 8,283 prices across the key entities 149 416 ▪ Cost changes reflect lower price of imported coal; partially offset by higher production at Tata Steel 5,425 Europe and hi
Slide 11: Consolidated Cash Flow movement during 3QFY21
Consolidated Cash Flow movement during 3QFY21 ₹ Crores 7,218 302 1,272 1,667 45 1,394 12,078 9,540 330 7,723 4,685 EBITDA Working Direct taxes Gorss interest Non - Cash Dividend Capex Free Cash Net Other Net Cash 3QFY21 capital payment payment & Others payment (incl. Flow repayment investing Flow mo
Slide 12: Debt movement
Consolidated2 Rs. Crores Debt movement 1,16,328 241 1,248 286 1,14,319 11,549 1 2,536 1,04,779 17,824 1 836 1,08,680 7,723 67,129 96,495 86,170 22,509 1 movement Gross Debt movement Gross Debt Gross Debt new leases and Others new leases and Others Cash, Bank & Net Debt Addition of Addition of FX Imp
Slide 13: Tata Steel Standalone: Financial performance
Tata Steel (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20 Standalone: Total revenue from operations 17,966 16,362 15,262 Financial performance Raw material cost1 4,166 3,957 4,210 Change in inventories 307 1,216 1,326 EBITDA 6,737 4,718 3,791 Adjusted EBITDA2 6,737 4,71
Slide 14: Standalone: EBITDA movement
Tata Steel Standalone: ₹ Crores EBITDA movement ▪ Selling results reflects partial impact of sequential increase in steel prices 263 1,835 59 20 6,737 ▪ Cost changes reflect higher use of imported coal and higher bonus provision, partially offset by lower imported coal prices 4,718 ▪ Volume/mix impa
Slide 15: India: Production and delivery volumes
Tata Steel India1: Production and delivery volumes ▪ India’s crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3%YoY growth ▪ Sales momentum was strong in 3QFY21, however, deliveries were lower by 8%QoQ and 4%YoY to 4.65 mn tons primarily due to lower opening inventory
Slide 16: Tata Steel India – segmental highlights
Tata Steel India1 – segmental highlights ▪ Automotive & special products: o Received approval for Hi Tensile DP590 grade (CR & GA) from 2 new OEMs ▪ Branded products and retail: o B2C brands Tata Shaktee and Tata Tiscon achieved best- ever quarterly sales, serving more than 1.5 lacs and 5.5 lacs con
Slide 17: Tata Steel India – New products developed for Automotive customers
Tata Steel India1 – New products developed for Automotive customers DP High Tensile (Cold Rolled High Strength IFHS 440 (Cold Rolled High Strength Steel): DP 600 in GA & GI (Coated Steel): High strength Steel): Auto-internals with enhanced mechanical High formable IF based high strength steel with c
Slide 18: Tata Steel India – Progress on new initiatives
Tata Steel India1 – Progress on new initiatives Supplier of choice for Aashiyana2 Steel Recycling Business automotive steel ▪ Highest ever quarterly gross ▪ Commissioned 1st state-of-the-art revenue generated through Steel Recycling plant in India ‘Aashiyana’ of Rs.223 crores in 3QFY21, up 40%QoQ an
Slide 19: Tata Steel BSL: Consolidated performance and key updates
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20 Consolidated Crude Steel production (mn tons) 1.11 1.14 1.15 performance Deliveries (mn tons) 1.15 1.27 1.26 and key updates Total revenue from operations 5,881 5,519 5,038 Raw material cost1 2,846 2,558 2,6
Slide 20: Long Products: Steady improvement in operations and the marketplace
Tata Steel Long Products: Steady improvement in operations and the marketplace Crude Steel Production (K tons) Steel deliveries (K tons) ▪ Despite maintenance shutdowns, achieved the highest ever quarterly crude steel production with a growth of Automotive IPP Exports 3%QoQ and 10%YoY on the back of
Slide 21: Long Products: Consolidated Financial performance
Tata Steel Long (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20 Products: Total revenue from operations 1,364 1,186 999 Consolidated Raw material cost 549 577 588 Financial Change in inventories 1 85 63 performance EBITDA 440 194 36 EBITDA per ton (Rs.)1 26,471 10,512 2,
Slide 22: Tata Steel Long Products: Set to scale up with merger
Tata Steel Long Products: Set to scale up with merger Revenue1 (Rs. crores) EBITDA1 (Rs. crores) ▪ TSLP to transform into a high value added, diversified long product steel TSLP TML ISWP TSLP TML ISWP company 904 5,820 ▪ Combination of mini, integrated steel plants to – 10 4,656 279 572 246 509 o Dr
Slide 23: Tata Steel Europe: performance and key updates
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20 performance Liquid Steel production (mn tons) 2.59 2.15 2.51 and key updates Deliveries (mn tons) 2.11 2.27 2.35 Total revenue from operations 14,070 13,498 13,821 Raw material cost1 6,583 4,931 6,240 Cha
Slide 24: Business Outlook
Business Outlook ▪ Global steel demand is expected to expand in 4QFY21 with improving economic activity across the regions ▪ India steel demand continues to be buoyant; supported by economic recovery, government spending, and easy liquidity Steel Demand ▪ Demand from Automotive sector is gradually i
Slide 25: Annexure – I: Consolidated QoQ variations
Annexure – I: Rs Crores 3QFY21 2QFY21 Key Reasons Tata Steel 38,806 36,476 Higher with improved steel realisation and better product mix across key Income from operations Consolidated entities, partially offset by lower deliveries QoQ variations Other operating income 788 678 Higher primarily at Sta
Slide 26: Annexure – II: Standalone QoQ variations
Annexure – II: Rs Crores 3QFY21 2QFY21 Key Reasons Tata Steel 17,670 16,110 Due to improved realisations and favourable mix; partially offset Income from operations Standalone QoQ by lower deliveries variations Primarily due to higher sale of seconds steel and reversal of old Other operating income
Slide 27: Annexure – III: Tata Steel Long Products QoQ variations
Annexure – III: Rs Crores 3QFY21 2QFY21 Key Reasons Tata Steel Long Primarily due to higher steel and DRI realisations, improved mix and Products QoQ Income from operations 1,364 1,186 increased volume of pellet conversion for TSL; partially offset by lower Steel and DRI deliveries variations Primar
Slide 28: Annexure – IV: Tata Steel Standalone: Key sustainability parameters
Annexure – IV: Tata Steel Standalone: Key sustainability parameters Coke Rate (kg/tcs) Specific Energy Consumption (Gcal/tcs) Specific Water Consumption (m3/tcs) Good Good Good 434 7.29 399 5.54 393 6.63 375 6.31 6.29 6.27 367 367 6.21 362 360 353 352 352 348 5.89 345 4.75 5.68 5.67 5.67 5.63 5.60 5
Slide 29: Annexure – V: Tata Steel Long Products: Key operational parameters
Annexure – V: Tata Steel Long Products: Consistent improvement in key operational parameters Raw Material handling through Rake (%, Coke rate (kg/thm, Indexed 1QFY20=100) PCI rate (kg/thm, Indexed 1QFY20=100) Indexed 1QFY20=100) 100 160 200 85 130 160 Good Good Good 70 100 120 55 70 80 40 40 40 1QFY
Slide 30: Investor relations contact
Investor relations contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com 30