Tata Steel Limited · NSE:TATASTEEL
Tata Steel — FY2021 Earnings Presentation
30 slides from Tata Steel's earnings presentation, May 5, 2021
Slide 1: Exchange submission letter for investor presentation
May 5, 2021 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001, Maharashtra, India. Mumbai
Slide 2: Results Presentation
Results Presentation Financial quarter and full year ended March 31, 2021 May 05, 2021 1
Slide 3: 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 4: Delivered strong performance despite COVID-19 driven disruptions
Delivered strong performance despite COVID-19 driven disruptions 4QFY21 FY21 India1 constitutes 60% of ▪ Consolidated EBITDA grew 48%QoQ and ▪ Consolidated EBITDA grew 71%YoY to FY21 deliveries (mn tons) Highest Ever 3x YoY to Rs.14,290 crores Rs.30,892 crores quarterly ▪ India1 EBITDA grew 40%QoQ a
Slide 5: Committed towards excellence in Safety and Health
Committed towards excellence in Safety and Health LTIFR reduction ▪ Trained 13,000+ workforce on various safety standards at Safety Leadership by 24% 0.95 Safety Development Centre in FY21 0.78 0.72 0.69 0.68 ▪ Reduced red-risk incidents by 61%YoY in FY21 0.60 0.58 0.56 0.47 0.46 0.44 ▪ Developed e-
Slide 6: Supporting our communities and the country during the crisis
Supporting our communities and the country during the crisis Fighting COVID Education ▪ Oxygen for medical purposes: ▪ 30 Model schools: 25 schools have currently supplying about 1,000 tons of been handed over to the Government liquid oxygen per day to different parts of Odisha till date of India ▪
Slide 7: Sustainability is deeply embedded in Tata Steel ecosystem
Sustainability is deeply embedded in Tata Steel ecosystem ▪ Recognized as Steel Sustainability Champion for 4th consecutive year by Worldsteel Association ▪ Recognised by Ethisphere, for the 10th time, as one of the 2021 World’s Most Ethical Companies ▪ Achieved best ever Specific water consumption
Slide 8: Global steel prices and spreads have increased significantly due to multiple megatrends
Global steel prices and spreads have increased significantly due to multiple megatrends Accommodative policies aiding business Manufacturing activities have rebounded Increasing vaccination is a key to support sentiments and supporting economic recovery strongly; another wave of COVID-19 is a key ri
Slide 9: Steel Industry is in a structural upcycle
Steel Industry is in a structural upcycle Economic activities rebounded Robust domestic demand YoY Growth Construction Capital goods (mn tons) Exports (RHS) Crude Steel Production (mn tons) ▪ Most of the steel consuming sectors in India witnessed Automotive Consumer goods Finished steel demand broad
Slide 10: Highest ever consolidated EBITDA
Highest ever consolidated EBITDA (All figures are in Rs. Crores unless stated otherwise) 4QFY21 3QFY21 4QFY20 FY21 FY20 Production (mn tons)1 8.02 7.74 7.90 28.54 30.63 Deliveries (mn tons) 7.83 7.41 7.06 28.50 28.88 Total revenue from operations 49,977 41,902 36,009 1,56,294 1,48,972 Raw material c
Slide 11: Consolidated EBITDA bridge
Consolidated EBITDA1 bridge Rs. Crores 6,811 ▪ Selling Result: Sharply improved with 787 13,933 increase in steel prices across entities 1,941 117 ▪ Cost Changes: Higher production along with higher iron ore prices, 8,394 partly offset by lower price of imported coal ▪ Volume/Mix: Higher steel deliv
Slide 12: Generated free cash flows of Rs.23,748 crores in FY21
Generated free cash flows of Rs.23,748 crores in FY21 Rs. Crores 10,111 3,239 6,310 704 6,380 1,845 1,500 30,892 1,417 66 6,979 23,748 30,560 1,374 EBITDA Working Finance Taxes paid Non-cash & Dividend Capex Free Cash Intergroup Pre-export Net Repayment Borrowings Net Cash FY21 capital cost (net) Ot
Slide 13: Consolidated net debt declined by more than 28% in FY21
Consolidated net debt declined by more than 28% in FY21 1,16,328 1,489 Rs. Crores 1,122 1,08,680 48 11,5491 10,260 22,5091 534 444 88,501 20,316 13,1132 75,389 104,779 86,170 and Others and Others Gross Debt Gross Debt Gross Debt Net Debt of SEA operations Cash, Bank & movement movement new leases n
Slide 14: Highest ever annual deliveries in India despite COVID-19 driven disruption
Highest ever annual deliveries in India1 despite COVID-19 driven disruption (all figures in mn tons) Highest ever 18.20 16.93 4.75 4.60 4.73 ▪ Achieved the highest ever quarter production with Crude Steel Production a 3%QoQ growth ▪ FY21 production was lower by 7%YoY due to the pandemic driven disru
Slide 15: Strategic focus to continuously enhance value added portfolio
Strategic focus to continuously enhance value added portfolio Automotive & Special Products Branded Products & Retail ▪ First Indian steel supplier to collaborate with a leading PV OEM for Joint exercise to benchmark customer’s product with competition ▪ ‘Branded Product & Retail’ segment registered
Slide 16: Increasing presence in high-end value added engineering segment in India
Increasing presence in high-end value added engineering segment in India High-end value added deliveries grew 46%YoY ▪ FY21 deliveries in high-end value-added engineering segment grew 46%YoY driven by increased focus Oil & Gas Solar & Niche L&E PEB on mix enrichment, new product development and mill
Slide 17: New initiatives pursued in India are progressing well
New initiatives pursued in India are progressing well Aashiyana1 Service & Solutions Steel Recycling Business New Material Business On-site fabricated FRP tanks ▪ Highest ever quarterly gross ▪ Tata Pravesh achieved best-ever ▪ Completed shredder erection; ▪ Enhancing manufacturing capacity revenue
Slide 18: Tata Steel Standalone: Highest ever EBITDA
Tata Steel Standalone: Highest ever EBITDA (All figures are in Rs. Crores unless stated otherwise) 4QFY21 3QFY21 4QFY20 FY21 FY20 Total revenue from operations 21,203 17,966 14,211 64,869 60,436 Raw material cost1 4,376 4,166 4,338 15,015 18,970 Change in inventories (104) 307 (980) 1,464 (564) EBIT
Slide 19: Tata Steel BSL: Highest ever EBITDA; focussed on deleveraging
Consolidated financial statements Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 4QFY21 3QFY21 4QFY20 FY21 FY20 Highest ever Crude Steel production (mn tons) 1.18 1.11 1.12 4.08 4.46 EBITDA; focussed Deliveries (mn tons) 1.19 1.15 0.98 4.31 4.14 on deleveraging Total revenue
Slide 20: Tata Steel Long Products: Consistent improvement in operations and marketplace
Tata Steel Long Products: Consistent improvement in operations and marketplace Annual volumes (k tons) Quarterly volumes (k tons) ▪ Steel production grew on the back of Crude Steel production Steel sales Crude Steel production Steel sales debottlenecking at steel melting shop and arcing – improved 7
Slide 21: Tata Steel Long Products: Highest ever EBITDA; focussed on deleveraging
Tata Steel Long Consolidated financial statements 4QFY21 3QFY21 4QFY20 FY21 FY20 (All figures are in Rs. Crores unless stated otherwise) Products: Highest Total revenue from operations 1,547 1,364 1,008 4,750 3,490 ever EBITDA; Raw material cost 672 549 528 2,182 2,392 focussed on Change in inventor
Slide 22: Tata Steel Europe: Strong operating performance
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 4QFY21 3QFY21 4QFY20 FY21 FY20 Strong operating Liquid Steel production (mn tons) 2.66 2.59 2.64 9.56 10.26 performance Deliveries (mn tons) 2.47 2.11 2.39 8.82 9.29 Total revenue from operations 17,258 14,070 13,588 56,051 5
Slide 23: Tata Steel SEA: Strong performance with higher capacity utilization
Tata Steel SEA: (All figures are in Rs. Crores unless stated otherwise) 4QFY21 3QFY21 4QFY20 FY21 FY20 Strong performance Saleable Steel production (mn tons) 0.61 0.54 0.53 2.06 2.17 with higher capacity utilization Deliveries (mn tons) 0.64 0.59 0.60 2.21 2.40 Total revenue from operations 3,178 2,
Slide 24: Business Outlook
Business Outlook ▪ Global steel demand is expected to expand by 5.8% in CY21 with recovering economy and progressive COVID-19 vaccination across regions ▪ India steel demand continues to be buoyant; supported by economic recovery, government spending and improved liquidity Steel demand ▪ Demand reco
Slide 25: Annexure – I: Tata Steel Consolidated QoQ variations
Annexure – I: Rs Crores 4QFY21 3QFY21 Key Reasons Tata Steel Higher with improved steel realisation and higher deliveries across Income from operations 48,951 41,112 geograpies Consolidated Other operating income 1,027 791 Higher primarily at Standalone and Tata Steel BSL QoQ variations Primarily du
Slide 26: Annexure – II: Tata Steel Standalone QoQ variations
Annexure – II: Rs Crores 4QFY21 3QFY21 Key Reasons Tata Steel Income from operations 20,818 17,670 Due to improved realisations and favourable mix Standalone QoQ Primarily due to higher sale of seconds steel and reversal of old Other operating income 385 296 liabilities no longer required variations
Slide 27: Annexure – III: Tata Steel Long Products QoQ variations
Annexure – III: Rs Crores 4QFY21 3QFY21 Key Reasons Tata Steel Long Higher with improved steel and DRI realisations along with increased Income from operations 1,547 1,364 Products QoQ volume for both Steel and DRI variations Raw materials consumed 672 549 Primarily due to higher production of steel
Slide 28: Annexure – IV: Tata Steel Standalone
Annexure – IV: Tata Steel Standalone Coke Rate (kg/tcs) Specific Energy Consumption (Gcal/tcs) Specific Water Consumption (m3/tcs) Good Good Good 434 7.29 399 6.31 6.27 6.24 367 367 360 354 353 352 348 4.75 5.68 5.67 5.67 5.63 5.61 4.27 4.16 4.15 3.83 3.68 3.27 2.80 2.25 FY17 FY18 FY19 FY20 FY21 FY1
Slide 29: Annexure – V: Tata Steel Long Products
Annexure – V: Tata Steel Long Products (all figures are indexed; 1QFY20=100) Coke rate (kg/thm) PCI rate (kg/thm) Raw Material handling through Rake (%) 100 160 153 200 184 89 Good Good Good 85 130 160 70 100 120 55 70 80 40 40 40 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY20 2QFY20
Slide 30: Investor relations contact
Investor relations contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com 29