Tata Steel (Thailand) Public Co. Ltd. · SET:TSTH
Tata Steel (Thailand) Public — Tata Steel (Thailand) — Q3 FY20 Earnings Presentation
21 slides from Tata Steel (Thailand) Public's earnings presentation, Jan 30, 2020
Slide 1: Operating Results of Q3FY20 and 9MFY20
Tata Steel (Thailand) Plc. welcomes Media Team Presentation: Operating Results of Q3FY20 (October – December 2019) and 9MFY20 (April – December 2019) January 30, 2020
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 • Corporate Citizenship • Update on Business Environment and Markets • Q3 (October - December) & 9M FY20 Performance • Business Outlook 3
Slide 4: Corporate Citizenship: CSR Mission
Corporate Citizenship: CSR Mission Religion, Culture & Education Promotion Environment Conservation • Tata Group in Thailand joined the • Participated on Kathin project of “FORest FOR Life FOR Festival at 4 Temples our Beloved KING Year 8th” by (NTS: Bo - Win Temple, Phansadet-Nai Temple, . picking
Slide 5: Awards & Recognitions in Q3FY20
Awards & Recognitions in Q3FY20 Certificate of CAC Membership: TSTH received the extension of “Certificate of CAC Membership” for another 3 years from October 18, 2019 at the event of “CAC National Conference Day 2019”. Thailand Sustainability Investment (THSI) 2019: TSTH received “Thailand Sustaina
Slide 6: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q3 (October - December) & 9M FY20 Performance • Business Outlook 6
Slide 7: Iron Ore price steady, Scrap prices rose in Q3
Iron Ore price steady, Scrap prices rose in Q3 • Iron ore prices started strengthening during 2019 year end as mills restock ahead of Chinese New Year and winter season. • Despite not so good demand of finished products, scrap price increased by almost 40-50 USD pmt due to supply issues. Source: SBB
Slide 8: China steel scenario: Production output drops; PMI steady
China steel scenario: Production output drops; PMI steady PMI China Crude Steel Production (Million Ton) 53.0 120 Thousands 52.5 51.9 110 52.0 51.5 51.4 51.5 51.2 51.3 100 50.8 51.0 90 50.2 50.5 85 50.5 50.0 89 80 79 88 85 87 80 50.0 76 81 81 83 71 80 50.1 49.4 49.5 83 82 50.2 50.2 80 80 81 49.5 75
Slide 9: Thailand economy – adversely impacted by external & internal issues (1/2)
Thailand economy – adversely impacted by combination of external & internal issues (1/2) 7.3 %GDP 3.9 4.1 2.7-3.7 3.2 2.8 2.8 2.6 0.9 2012 2013 2014 2015 2016 2017 2018 2019 (f)2020 (f) • Key issues in 2019 • Impact • Global economic slowdown • Lower Export volume and prices • China – US trade war •
Slide 10: Thailand economy – adversely impacted by external & internal issues (2/2)
Thailand economy – adversely impacted by combination of external & internal issues (2/2) 10
Slide 11: Thailand Steel industry: Apparent Steel consumption
Thailand Steel industry: Apparent Steel consumption Unit: ‘000 Ton 20,862 19,090 19,334 17,924 17,708 17,918 16,914 16,726 17,091 14,647 13,876 13,581 14,012 12,661 12,716 12,154 10,967 10,758 10,049 7,607 6,762 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 12: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q3 (October - December) & 9M FY20 Performance • Business Outlook 12
Slide 13: Sales Volume of Q3 (Oct-Dec)
Sales Volume of Q3 (Oct-Dec) Unit : ‘000 Ton Good Total sales Dom. Rebars + Cut & bend 191 296 181 280 286 157 Q3 FY19 Q2FY20 Q3FY20 Q3 FY19 Q2FY20 Q3FY20 Dom. Wire Rods Export 87 29 77 26 71 15 Q3 FY19 Q2FY20 Q3FY20 Q3 FY19 Q2FY20 Q3FY20 13
Slide 14: Value added products sales of Q3
Value added products sales of Q3 Unit : ‘000 Ton Good Seismic Rebar High Tensile Rebar 26 24 10 21 9 6 Q3 FY19 Q2FY20 Q3FY20 Q3 FY19 Q2FY20 Q3FY20 Dom. Cut & Bend 17 17 14 Q3 FY19 Q2FY20 Q3FY20 14
Slide 15: Sales Volume of 9M (Apr-Dec)
Sales Volume of 9M (Apr-Dec) Unit : ‘000 Ton Good Total sales Dom. Rebars + Cut & bend 600 1,000 538 849 881 900 500 461 800 700 400 600 500 300 400 200 300 200 100 100 - - 9MFY19 9MFY20 9MFY19 9MFY20 Dom. Wire Rods Export 350 120 100 300 100 257 83 250 231 80 200 60 150 40 100 20 50 - - 9MFY19 9MFY
Slide 16: Value added products sales of 9M
Value added products sales of 9M Unit : ‘000 Ton Good Seismic Rebar High Tensile Rebar 35 100 28 90 30 80 74 25 70 60 20 60 16 50 15 40 10 30 20 5 10 - - 9MFY19 9MFY20 9MFY19 9MFY20 Dom. Cut & Bend 60 50 47 45 40 30 20 10 - 9MFY19 9MFY20 16
Slide 17: Financial Performance of Q3
Financial Performance of Q3 Unit : Million THB Good Revenue from sales EBITDA 137 5,475 5,075 4,486 84 24 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Profit (Loss) before tax Profit (Loss) after tax (13) (21) (52) (63) (196) (179) Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 17
Slide 18: Financial Performance of 9M
Financial Performance of 9M Unit : Million THB Good Revenue from sales EBITDA 474 475 16,740 14,981 9MFY19 9MFY20 9MFY19 9MFY20 TSTH has tried to increase it’s production as well as reduce it’s operating cost. But those actions could not off-set the lower margins caused by weak demand and increased
Slide 19: Contents
Contents • Corporate Citizenship • Update on Business Environment and Markets • Q3 (October - December) & 9MFY20 Performance • Business Outlook 19
Slide 20: Business Outlook
Business Outlook • Budget approved in principal. Disbursement was expected to start from Feb 20 but likely to be delayed due to court case. • Government has indicated to expedite many road & rail projects. Should support construction steel demand • Peak Construction season • Thailand witnessing seve
Slide 21: Thank you for your attention
qp TATA STEEL (THAILAND) TATA Thank you for your attention TATA STEEL (THAILAND)
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