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Results Presentation Fourth quarter and year ended March 31, 2018 May 16, 2018 1 1
Results Presentation Fourth quarter and year ended March 31, 2018 May 16, 2018 1 1
Results Presentation Fourth quarter and year ended March 31, 2018 May 16, 2018 1 1

Results Presentation

Fourth quarter and year ended March 31, 2018

May 16, 2018

1

1

Safe harbor statement

Safe harbor statement Statements in this presentation describing the Company’s performance may be “forward looking
Safe harbor statement Statements in this presentation describing the Company’s performance may be “forward looking

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 factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and

overseas markets in which the Company operates, changes in or due to the environment,

Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.

Commitment towards excellence in Health and Safety

Commitment towards excellence in Health and Safety LTIFR* of Tata Steel group reduced to 0.46 ▪
Commitment towards excellence in Health and Safety LTIFR* of Tata Steel group reduced to 0.46 ▪

LTIFR* of Tata Steel group reduced to 0.46

Felt Leadership programme

Reduced by 85% FY06 3.06 FY07 2.35 FY08 2.10 FY09 1.31 FY10 0.95 FY11 0.78
Reduced by 85%
FY06
3.06
FY07
2.35
FY08
2.10
FY09
1.31
FY10
0.95
FY11
0.78
FY12
0.68
FY13
0.60
FY14
0.56
FY15
0.44
FY16
0.39
FY17
0.58
FY18
0.46

Completed for all senior leaders, union committee members, and 83% officers in India

Best practices for Process Safety

Deployed in high hazard operations with cross learning between India and Europe

Contractor Safety Management

Engaging only competent vendors as per contractor safety management standard for high risk jobs

Key recent awards

o

18 awards to Tata Steel West Bokaro division at ‘60 th Annual Mines Safety Week’ under aegis of the Directorate General Mines Safety, India

o

BIZSAFE award to Nat Steel Group by the Work

Place Safety and Health Council, Singapore for

exemplary risk management systems

*LTIFR is Lost Time Injury Frequency Rate

Focused on engaging with communities and improving quality of life

on engaging with communities and improving quality of life India E d u c a t

India

Education

6 Model Schools were inaugurated and handed over to Odisha Government in FY18 under ‘30 Model School Construction Project’

Supported 3,269 students for their education under ‘Jyoti Fellowship’

1,165 Odisha villages were made child labour free zones and reached

out to 648 Jharkhand villages by intensively engaging 2,800 children under ‘Thousand Schools Project’ by end of FY18

Health &

Static and mobile clinics, and health camps Over 4.5 Lakh patient footfalls across Jharkhand and Odisha

Sanitation

Ante-Natal & prenatal check-ups 6071 pregnant women benefitted

Treatment/ rehabilitation of 2,106 leprosy patients

Immunization of 4,223 children

Constructed 3,235 household Toilets in Jharkhand and West Singhbhum districts under “Open Defecation Free” drive

Livelihood

Training in rural and agrarian skills: 1,084 farmers trained at Green College Kolabera in partnership with German non-profit Welthungerhilfe

Skilled over 4,342 youths in various vocational trades

Started first academic session in FY18 after taking over Industrial Training Institute (ITI) from government of Jharkhand

Europe

Sponsored an organised a ‘sleep-out’ event to raise awareness and money to combat homelessness in South Wales

Tata-Kids of Steel Football event for children in Ijmuiden a community partnership with Telstar soccer club focused on how to live a healthy lifestyle

CSR Spend India (Rs. crores)

232

212

204

194

171

FY14

FY15

FY16

FY17

FY18

focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204
focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204
focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204
focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204
focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204
focused on how to live a healthy lifestyle CSR Spend India (Rs. crores) 232 212 204

4

Key highlights

Key highlights Delivering, growing and creating value Strong operating performance Enhancing Kalinganagar
Key highlights Delivering, growing and creating value Strong operating performance Enhancing Kalinganagar

Delivering, growing and creating value

Key highlights Delivering, growing and creating value Strong operating performance Enhancing Kalinganagar

Strong

operating

performance

Enhancing

Kalinganagar

Pursuing

value added

plant

inorganic

products

expansion

growth

portfolio

starts

opportunities

expansion growth portfolio starts opportunities Creating Successful sustainable resolution of

Creating

Successful

sustainable

resolution of

European

UK Pension

portfolio

Scheme

Landmark

US$ 1.3bn

bonds

offering

US$ 2bn

Rights Issue

to strengthen

the Balance

Sheet

Production (MT) 1 Deliveries (MT) +3.6% +5.8% 25.39 24.52 25.27 23.88 6.26 6.49 6.40 6.43
Production (MT) 1
Deliveries (MT)
+3.6%
+5.8%
25.39 24.52
25.27 23.88
6.26
6.49
6.40
6.43
6.56
6.83
4Q
3Q
4Q
FY18
FY17
4Q
3Q
4Q
FY18
FY17
FY18
FY18
FY17
FY18
FY18
FY17

EBITDA (Rs. Crores)

+29.5% +13.4% 22,045 17,025 6,579 5,801 6,982 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17
+29.5%
+13.4%
22,045 17,025
6,579 5,801 6,982
4Q
3Q
4Q
FY18
FY17
FY18
FY18
FY17

EBITDA per ton (Rs.)

+15.8%
+15.8%
 
+22.3%
+22.3%
 

10,231 8,836 10,228

8,725 7,132

             

4Q

3Q

4Q

FY18

FY17

FY18

FY18

FY17

1. Production numbers for consolidated financials are calculated using Crude steel for India, Liquid steel for Europe and Saleable steel for SEA

Agenda

Agenda Business Environment Operational Performance Financial Performance Appendix 6
Agenda Business Environment Operational Performance Financial Performance Appendix 6

Business Environment

Agenda Business Environment Operational Performance Financial Performance Appendix 6

Operational Performance

Financial Performance

Appendix

Agenda Business Environment Operational Performance Financial Performance Appendix 6
Agenda Business Environment Operational Performance Financial Performance Appendix 6
Agenda Business Environment Operational Performance Financial Performance Appendix 6

Global economic growth strengthens; steel demand continues to grow

economic growth strengthens; steel demand continues to grow ▪ Global economic growth outlook has further strengthened
economic growth strengthens; steel demand continues to grow ▪ Global economic growth outlook has further strengthened

Global economic growth outlook has further strengthened despite headwinds of rising

protectionism and trade war concerns, geopolitical issues and rising interest rates

CY18 global steel demand is expected to grow by ~29 mn tons; Chinese steel demand to remain flat as China gradually transitions to slower economic growth

GDP Growth projection (%)

CY2017to slower economic growth GDP Growth projection (%) CY2018F CY2019F World AEs EMDEs China EU India

CY2018F CY2019F World AEs EMDEs China EU India 3.8% 3.9% 3.9% 2.3% 2.5% 2.2% 4.8%
CY2018F
CY2019F
World
AEs
EMDEs
China
EU
India
3.8%
3.9%
3.9%
2.3%
2.5%
2.2%
4.8%
4.9%
5.1%
6.9%
6.6%
6.4%
2.3%
2.4%
2.0%
6.7%
7.4%
7.8%

Source: IMF, World Steel Association AEs: Advanced Economies; EMDEs: Emerging Market and Developing Economies

Finished steel demand growth forecast (in mn tons)

CY2017 CY2018F CY2019F Global China World Ex EU India 1,587 1,616 1,627 737 737 722
CY2017
CY2018F
CY2019F
Global
China
World Ex
EU
India
1,587
1,616
1,627
737
737
722
851
879
905
162
166
167
87
92
98

China

7

Global steel spreads expand with favourable steel supply-demand balance China steel exports and inventory (mn

Global steel spreads expand with favourable steel supply-demand

balance

spreads expand with favourable steel supply-demand balance China steel exports and inventory (mn tons) Major mills
China steel exports and inventory (mn tons) Major mills Inventory Annualised exports (RHS) Distributors Inventory
China steel exports and inventory (mn tons)
Major mills Inventory
Annualised exports (RHS)
Distributors Inventory
40
160
30
120
20
80
10
40
0
0
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Apr-18

Chinese steel production grew by 5%YoY in Mar’18 quarter; utilization was at elevated levels with capacity closures

Chinese steel exports declined by ~27%YoY

with demand recovery after a slow start post CNY

Global steel prices remained buoyant; steel spreads improved with favourable demand- supply balance and recent softness in raw material prices

Global HRC Prices and gross spread 1 (US$ per ton)

720

620

520

420

320

220

China HRC spot spread, gross (RHS) North Europe domestic HRCand gross spread 1 (US$ per ton) 720 620 520 420 320 220 China export HRC

China export HRC China domestic HRC Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17
China export HRC
China domestic HRC
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18

400

320

240

160

80

0

Source: Bloomberg, Morgan Stanley 1. China HRC Export - China Weekly Hot Rolled Steel 3mm Export Price Shanghai, North Europe Domestic HRC - PLATTS TSI HRC N Europe Domestic Prod Ex-Mill, China Domestic HRC - China Domestic Hot Rolled Steel Sheet Spot Average Price, China HRC spot spreads =China HRC exports (1.65 x Iron Ore Spot Price Index 62% + 0.7x SBB Premium Hard Coking Coal)

8

Indian steel prices increased with improved demand environment Steel production, demand and imports (mn tons)

Indian steel prices increased with improved demand environment

steel prices increased with improved demand environment Steel production, demand and imports (mn tons) ▪

Steel production, demand and imports (mn tons)

Acceleration in economic activities in

4QFY18

Steel demand grew by 8.2%YoY

o

o

Government’s continued focus on infrastructure spending

Strong growth in automotive, capital goods and consumer durables segments

Crude Steel Productionin automotive, capital goods and consumer durables segments Apparent Finished Steel Usage 2.6 30 2.8 Imports

Apparent Finished Steel Usagegoods and consumer durables segments Crude Steel Production 2.6 30 2.8 Imports 2.6 25 2.4 20

2.6
2.6
30 2.8 Imports 2.6 25 2.4 20 2.2 2.0 15 1.8 1.4 10 1.6 1.8
30
2.8
Imports
2.6
25
2.4
20
2.2
2.0
15
1.8
1.4
10
1.6
1.8
1.8
1.9
1.8
1.7
1.7
1.4
5
1.2
0
1.0
23.7
1QFY17
20.7
24.0
2QFY17
20.4
24.6
3QFY17
20.6
25.7
4QFY17
22.4
24.6
1QFY18
21.6
25.2
2QFY18
22.8
25.9
3QFY18
22.0
26.7
4QFY18
24.2

Crude steel production increased by

3.7%YoY

Domestic steel prices increased with improved demand; further supported by favourable regional price sentiments

Source: Bloomberg, SIAM, MOSPI, Joint plant committee, World Steel Association * Excludes two and three wheelers production

Key steel consuming sectors (% Change, YoY)

36%

24%

12%

0%

-12%

-24%

Passenger Vehicles* Consumer Durables Commercial Vehicles Capital goods Construction 1QFY16 2QFY16 3QFY16 4QFY16
Passenger Vehicles*
Consumer Durables
Commercial Vehicles
Capital goods
Construction
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18

9

Europe Steel demand grew, supported by growth across sectors

Europe Steel demand grew, supported by growth across sectors ▪ Eurozone economy grew 0.4%QoQ in 1QCY18
Europe Steel demand grew, supported by growth across sectors ▪ Eurozone economy grew 0.4%QoQ in 1QCY18

Eurozone economy grew 0.4%QoQ in 1QCY18

EU steel demand have grown by 1.6%YoY in 1QCY18, supported by growth across the main steel-using sectors

The market share of imports of steel remains high

EU market supply (mn tons, annualized) and imports’ share (%) Deliveries Imports Import share (%)
EU market supply (mn tons, annualized) and imports’
share (%)
Deliveries
Imports
Import share (%)
160
24%
120
18%
80
12%
40
6%
0
0%
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
EU sector output 1 (Jan 2008=100) 120 Automotive Machinery Construction 110 100 90 80 70
EU sector output 1 (Jan 2008=100)
120
Automotive
Machinery
Construction
110
100
90
80
70
60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Eurostat, Eurofer, 1. Realised output i.e. gross value added by the sector to the economy

SE Asia Rebar spreads declined amidst sluggish demand

SE Asia Rebar spreads declined amidst sluggish demand ▪ Long steel demand remained weak; Construction sector
SE Asia Rebar spreads declined amidst sluggish demand ▪ Long steel demand remained weak; Construction sector

Long steel demand remained weak; Construction sector continues to remain sluggish in both Singapore and Thailand

South East Asia rebar spreads declined due to sharp rise in scrap prices and weaker demand

sentiments

Construction GDP (% Change, YoY) Singapore 25 Thailand 20 15 10 5 0 -5 -10
Construction GDP (% Change, YoY)
Singapore
25
Thailand
20
15
10
5
0
-5
-10
-15
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18

Source: Bloomberg and ISSB,NESDB

South East Asia rebar-scrap spread (US$/tonne) 557 550 400 600 Scrap Rebar Gap Scrap Price
South East Asia rebar-scrap spread (US$/tonne)
557
550
400
600
Scrap Rebar Gap
Scrap Price
Rebar Price
518
350
500
445
436
398
300
386
358
400
344
333 338
250
282
269
257
255
200
300
219
230
185
150
162 168
164
200
143
100
114
101
100
50
0
0
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18

Agenda

Agenda Business Environment Operational Performance Financial Performance Appendix 12
Agenda Business Environment Operational Performance Financial Performance Appendix 12

Business Environment

Operational Performance

Financial Performance

Appendix

Agenda Business Environment Operational Performance Financial Performance Appendix 12
Agenda Business Environment Operational Performance Financial Performance Appendix 12
Agenda Business Environment Operational Performance Financial Performance Appendix 12
Agenda Business Environment Operational Performance Financial Performance Appendix 12

Tata Steel India continues to grow faster than market

Tata Steel India – continues to grow faster than market During FY18: ▪ Production increased by

During FY18:

Production increased by 6.8% to 12.48 mn tons with ramp- up at Kalinganagar

Deliveries grew by 10.7% to 12.15 mn tons vs. 7.9%* market growth

volumesDelivery

Automotive +22.9% 1.94 1.58 0.57 0.52 0.43 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17
Automotive
+22.9%
1.94
1.58
0.57
0.52
0.43
4Q
3Q
4Q
FY18
FY17
FY18
FY18
FY17
IPPE +6.3% 5.07 4.77 1.40 1.53 1.16 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17
IPPE
+6.3%
5.07
4.77
1.40
1.53
1.16
4Q
3Q
4Q
FY18
FY17
FY18
FY18
FY17
 

BPRS

+9.5%
+9.5%
 

3.80

3.47

0.95

1.04

0.95

0.95 1.04 0.95  
 
0.95 1.04 0.95  

4Q

3Q

4Q

FY18

FY17

FY18

FY18

FY17

 

Downstream units

+16.0%

   
1 . 3 4 1.16

1.34

1.16

0.35

0.34

0.30

0.35 0.34 0.30  
 
0.35 0.34 0.30  

4Q

3Q

4Q

 

FY18

FY17

FY18

FY18

FY17

 

Crude Steel Production Volume

   
+6.8%
+6.8%

12.48

11.68

3.07

3.27

3.20

3.07 3.27 3.20  
 
3.07 3.27 3.20  

4Q

3Q

4Q

 

FY18

FY17

FY18

FY18

FY17

 
 

Total deliveries

 
   
+10.7%
+10.7%

12.15

10.97

3.03

3.30

3.21

3.03 3 . 3 0 3.21  
 
3.03 3 . 3 0 3.21  

4Q

3Q

4Q

 

FY18

FY17

FY18

FY18

FY17

 

All volume data is in million tons; BPRS: Branded Products and Retail Solutions: IPPE: Industrial Products Projects and Exports * India finished steel consumption growth as per Joint plant committee MIS Mar’2018

13

Tata Steel India – defining standards at multiple levels Market leading branded portfolio Branded products

Tata Steel India defining standards at multiple levels

Tata Steel India – defining standards at multiple levels Market leading branded portfolio Branded products sales
Market leading branded portfolio Branded products sales contributes
Market leading branded portfolio
Branded products sales contributes

46% of total sales; continues to grow

Unparalleled Pan India reach
Unparalleled Pan India reach

BPRS touches 2.5 million customers across India

Market leader in Auto Steel First choice for new car launches
Market leader in Auto Steel
First choice for new car launches
Lowest cost producer
Lowest cost producer

Both cash cost and conversion cost are one of the lowest amongst the global peers

Most enriched product mix
Most enriched product mix

68% delivery volume of total sales from Enriched/Value added products

Focus on innovation and R&D
Focus on innovation and R&D

Launched new services & solutions; Launched 38 new products in FY18

Socially responsible corporate
Socially responsible corporate

CSR activities touches one million lives every year

Sustainable business model
Sustainable business model

Domestic benchmark on various parameters

Tata Steel India adding value across segments

Tata Steel India – adding value across segments Automotive ✓ Started commercial HR supply from Kalinganagar
Tata Steel India – adding value across segments Automotive ✓ Started commercial HR supply from Kalinganagar

Automotive

Automotive ✓ Started commercial HR supply from Kalinganagar ✓ 17%YoY growth in High end Auto sales
Automotive ✓ Started commercial HR supply from Kalinganagar ✓ 17%YoY growth in High end Auto sales

Started commercial HR supply from Kalinganagar

17%YoY growth in High end Auto sales in FY18, driven by skin panel and hi- tensile sales

sales in FY18, driven by skin panel and hi- tensile sales ✓ Advanced Technical Support to
sales in FY18, driven by skin panel and hi- tensile sales ✓ Advanced Technical Support to

Advanced Technical Support to customers; continues to partner with them in their localization drive; Value Analysis & Value Engineering workshops

Branded

Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors
Branded ✓ Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors

Integrated pan-India sales and distribution network with over 12,000 dealers and 123 distributors

Products

and Retail

Products and Retail ✓ Early engagement with ECAs for value creation and early engagement portal for

Early engagement with ECAs for value creation and early engagement portal for ‘Individual Home Builders’ through website

Solutions

Solutions ✓ Enhancing consumer connect for improved adoption & advocacy
Solutions ✓ Enhancing consumer connect for improved adoption & advocacy

Enhancing consumer connect for improved adoption & advocacy

Industrial products, Projects and export

 
Industrial products, Projects and export   ✓ 2X growth in Engineering segment; increased market share in
Industrial products, Projects and export   ✓ 2X growth in Engineering segment; increased market share in
Industrial products, Projects and export   ✓ 2X growth in Engineering segment; increased market share in

2X growth in Engineering segment; increased market share in sub-segments like LPG cylinders and Medium carbon-High carbon steels.

✓ India’s First Branded Welded Wire Fabric “ Sm@rtFAB ”
✓ India’s First Branded Welded Wire Fabric “ Sm@rtFAB ”
✓ India’s First Branded Welded Wire Fabric “ Sm@rtFAB ”

India’s First Branded Welded Wire Fabric “Sm@rtFAB

ProCONSTRUCT” – Redefining approach to construction market

Downstream

Downstream ✓ Tubes: Steady growth in precision tubes for Automotive ; Launched "Tata Structura Z +"
Downstream ✓ Tubes: Steady growth in precision tubes for Automotive ; Launched "Tata Structura Z +"
Downstream ✓ Tubes: Steady growth in precision tubes for Automotive ; Launched "Tata Structura Z +"

Tubes: Steady growth in precision tubes for Automotive ; Launched "Tata Structura Z +" and "Tata Amrit" for B2C markets.

units

units ✓ Wires: Launch of PE coated LRPC, Wiron products and wire solutions for construction and
units ✓ Wires: Launch of PE coated LRPC, Wiron products and wire solutions for construction and

Wires: Launch of PE coated LRPC, Wiron products and wire solutions for construction and infrastructure.

C&P: Construction & Projects, PEB: Pre-Engineered Buildings, L&E: Lifting & Excavation and ECA: Emerging Corporate Accounts: LRPC: Low relaxation pre-stressed concrete; PE: Polyethylene

15

Tata Steel India continued focus on operational efficiencies and

minimizing environmental impact

operational efficiencies and minimizing environmental impact Coke Rate (kg/thm) 27.3% reduction since FY13 Specific

Coke Rate (kg/thm)

27.3% reduction since FY13

Specific dust emission (kg/tcs)

59% reduction since FY13

Specific water consumption (m 3 /tcs) 2

37.8% reduction since FY13

479

455

443 380 360 348
443
380
360
348

FY 13

FY 14

FY 15

FY 16

FY17

FY18

1.00 0.88

0.57 0.50 0.44 0.41
0.57
0.50
0.44
0.41

FY 13

FY 14

FY 15

FY 16

FY17

FY18

5.92 5.58

5.54

4.39 3.83 3.68
4.39
3.83
3.68

FY 13

FY 14

FY 15

FY 16

FY17

FY18

Note 1: All the above mentioned data is for Tata Steel Jamshedpur Operations Note 2: Very close to global benchmark of 3.6 m 3 /tcs (POSCO, Ref WSA 2016)

16

Tata Steel Europe – improving offering to customers ▪ FY18 deliveries were marginally up; 4QFY18

Tata Steel Europe improving offering to customers

Tata Steel Europe – improving offering to customers ▪ FY18 deliveries were marginally up; 4QFY18 deliveries

FY18 deliveries were marginally up; 4QFY18 deliveries were higher by 4.2% QoQ after the planned outages in 3QFY18

Launched 23 new products for customers in FY18, including 10 in Q4 new products included a Nickel plated steel for batteries used in electric vehicles.

Liquid Steel Production Volume (mn tons)

+1.2% 10.69 10.56
+1.2%
10.69
10.56
+1.2% 10.69 10.56 FY18 FY17

FY18

+1.2% 10.69 10.56 FY18 FY17

FY17

2.63

2.67

2.62

(mn tons) +1.2% 10.69 10.56 FY18 FY17 2.63 2.67 2.62 4Q FY18 3Q FY18 4Q FY17
(mn tons) +1.2% 10.69 10.56 FY18 FY17 2.63 2.67 2.62 4Q FY18 3Q FY18 4Q FY17
(mn tons) +1.2% 10.69 10.56 FY18 FY17 2.63 2.67 2.62 4Q FY18 3Q FY18 4Q FY17

4Q

FY18

3Q

FY18

4Q

FY17

Saleable Steel Sales Volume (mn tons)

+0.6% 9.99 9.93 2.85 2.55 2.44 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17
+0.6%
9.99
9.93
2.85
2.55
2.44
4Q
3Q
4Q
FY18
FY17
FY18
FY18
FY17

Tata Steel Europe continued focus on operational efficiencies and

minimizing environmental impact

operational efficiencies and minimizing environmental impact Specific Fuel Rate (kg/thm) 4.8% reduction since FY13

Specific Fuel Rate (kg/thm)

4.8% reduction since FY13

Specific energy intensity* (Gcal/tcs)

8.1% reduction since FY13

CO 2 emission intensity (tCO 2 /tcs )

5.3% reduction since FY13

525

518 516 500 497 496
518
516
500
497
496

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

5.40 5.03 4.99 4.96 4.93 4.89 FY 13 FY 14 FY 15 FY 16 FY17
5.40
5.03
4.99
4.96
4.93
4.89
FY 13
FY 14
FY 15
FY 16
FY17
FY18

2.07

1.97 1.96 1.95 1.94 1.92
1.97
1.96
1.95
1.94
1.92

All the above mentioned data is for Tata Steel Europe * Extrapolated to whole year from full IJmuiden data and 9 month Port Talbot data

18

Tata Steel SEA volumes maintained despite weaker markets

Steel SEA – volumes maintained despite weaker markets ▪ 4QFY18 delivery volumes were flat on QoQ
Steel SEA – volumes maintained despite weaker markets ▪ 4QFY18 delivery volumes were flat on QoQ

4QFY18 delivery volumes were flat on QoQ basis:

o

Nat Steel Singapore deliveries were down by 5.0%QoQ due to weaker construction demand, accentuated by New Year holidays

o

Tata Steel Thailand deliveries improved by 4.7%QoQ amidst lower exports by China

Saleable Steel Production Volume (mn tons)

2.23

2.23 FY18 2 . 2 8 FY17

FY18

2.28

2.23 FY18 2 . 2 8 FY17

FY17

0.59

0.56

0.55

tons) 2.23 FY18 2 . 2 8 FY17 0 . 5 9 0.56 0.55 4Q FY18
tons) 2.23 FY18 2 . 2 8 FY17 0 . 5 9 0.56 0.55 4Q FY18
tons) 2.23 FY18 2 . 2 8 FY17 0 . 5 9 0.56 0.55 4Q FY18

4Q

FY18

3Q

FY18

4Q

FY17

Saleable Steel Sales Volume (mn tons)

2.51

2.51 FY18 2 . 6 1 FY17

FY18

2.61

2.51 FY18 2 . 6 1 FY17

FY17

0.66

0.62

0.62

Saleable Steel Sales Volume (mn tons) 2.51 FY18 2 . 6 1 FY17 0 . 6
Saleable Steel Sales Volume (mn tons) 2.51 FY18 2 . 6 1 FY17 0 . 6
Saleable Steel Sales Volume (mn tons) 2.51 FY18 2 . 6 1 FY17 0 . 6

4Q

FY18

3Q

FY18

4Q

FY17

Business outlook

Business outlook   India: Europe: demand is expected to grow by 2.3% in 2018 in line
Business outlook   India: Europe: demand is expected to grow by 2.3% in 2018 in line
 

India:

Europe: demand is expected to grow by 2.3% in 2018 in line with economic growth; Imports pressure to continue

SEA: demand is expected to remain sluggish in 2018 with weaker private and public construction investments

o

Expect 6% steel demand growth in FY19 (5.5% in 2018 as per WSA)

Steel

o

Expect healthy growth in segments like Auto,

demand

Railway, Engineering, Construction, LPG, Tubers and Galvanizers

o Imports may rise as US Tariffs on Steel has created

 

uncertainly around global steel trade flows

   
 

India: expect prices to be range bound in the

Europe: expect prices to remain stable;

Steel

upcoming monsoon season

China has announced additional

prices

production curb post winter curbs

 

Iron Ore: expect prices to remain below $70/t in the

Coking Coal: prices have come down

Raw

material

prices

long run, in well supplied market

post resolution of seasonal supply

disruptions, expected to remain range bound

Agenda

Agenda Business Environment Operational Performance Financial Performance Appendix 21
Agenda Business Environment Operational Performance Financial Performance Appendix 21

Business Environment

Operational Performance

Financial Performance

Appendix

Agenda Business Environment Operational Performance Financial Performance Appendix 21
Agenda Business Environment Operational Performance Financial Performance Appendix 21
Agenda Business Environment Operational Performance Financial Performance Appendix 21
Agenda Business Environment Operational Performance Financial Performance Appendix 21

Financial Performance

Financial Performance Rs Crores Consolidated India   4QFY18 3QFY18 4QFY17 FY18 FY17 4QFY18
Financial Performance Rs Crores Consolidated India   4QFY18 3QFY18 4QFY17 FY18 FY17 4QFY18
Financial Performance Rs Crores Consolidated India   4QFY18 3QFY18 4QFY17 FY18 FY17 4QFY18

Rs Crores

Consolidated

India

 

4QFY18

3QFY18

4QFY17

FY18

FY17

4QFY18

3QFY18

Turnover

36,132

33,447

35,305

133,016

117,420

16,281

15,596

Raw material cost 1

13,210

12,980

12,742

52,208

43,843

4,211

4,302

Change in inventories

467

148

(295)

(44)

(4,538)

102

429

EBITDA

6,579

5,801

6,982

22,045

17,025

4,823

4,647

EBITDA/t

10,231

8,836

10,228

8,725

7,132

15,932

14,094

Pre exceptional PBT from continuing operations

3,839

3,210

4,328

11,511

6,798

3,363

3,226

Exceptional Charges

11,376

(1,116)

(4,069)

9,599

(4,324)

(1,607)

(1,115)

Profit/(Loss) from Discontinued operations

49

(8)

(451)

58

(3,864)

-

-

Reported PAT

14,688

1,136

(1,168)

17,763

(4,169)

1,031

1,338

Basic EPS (For continuing and discontinued

 

operations)

96.86

12.07

(11.84)

128.12

(42.89)

9.38

12.55

4QFY17

FY18

FY17

17,113

60,519

53,261

4,454

17,525

13,378

96

545

(1,330)

4,324

15,800

11,944

13,478

13,003

10,893

2,697

10,005

6,060

(442)

(3,366)

(703)

-

-

-

1,415

4,170

3,445

13.32

38.57

31.74

10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74
10,005 6,060 (442) (3,366) (703) - - - 1,415 4,170 3,445 13.32 38.57 31.74

1. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products, All figures on a continuing operations basis (excluding Longs Products Europe and Specialty steel UK Limited) , India turnover is Net of GST with effect from 1 st July 2017

22

Financial Performance contd

Financial Performance contd Rs Crores   Europe SEA Others & Eliminations     4QFY18
Financial Performance contd Rs Crores   Europe SEA Others & Eliminations     4QFY18

Rs Crores

 

Europe

SEA

Others & Eliminations

 
 

4QFY18

3QFY18

4QFY17

FY18

FY17

4QFY18

3QFY18

4QFY17

FY18

FY17

4QFY18

3QFY18

4QFY17

FY18

FY17

Turnover

16,208

14,693

15,244

59,985

52,085

2,631

2,492

2,275

9,542

8,245

1,013

666

674

2,970

3,829

Raw material cost 1

7,089

6,659

6,639

27,429

22,400

1,818

1,882

1,644

6,706

5,808

92

137

5

548

2,257

Change in inventories

214

15

(287)

(366)

(2,663)

(0.5)

(201)

(190)

(143)

471

(95)

(95)

86

(80)

(1,017)

EBITDA

1,154

632

1,972

3,792

4,705

95

184

145

437

528

506

338

540

2,016

(152)

EBITDA/t 4,535 2,589 6,932 3,795 4,738 1,535 2,959 2,189 1,740 2,023 - - - -
EBITDA/t
4,535
2,589
6,932
3,795
4,738
1,535
2,959
2,189
1,740
2,023
-
- -
- -

1. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products, All figures on a continuing operations basis (excluding Longs Products Europe and Specialty steel UK Limited)

23

Consolidated Debt movement

Consolidated Debt movement ₹ Crores 2,075 863 1,492 608 477 3,617 83,014 22,932 Gross Debt Loans
Consolidated Debt movement ₹ Crores 2,075 863 1,492 608 477 3,617 83,014 22,932 Gross Debt Loans

Crores

2,075 863 1,492 608 477 3,617 83,014 22,932
2,075
863
1,492
608
477
3,617
83,014
22,932

Gross Debt

Loans

Forex

Others

Gross Debt

Loans

Forex

Others

Gross Debt

Cash, Bank

Net Debt

Mar 17

Movement

Impact &

Dec 2017

Movement

Impact &

Mar 2018

& Current

Mar 2018

 

Others

Others

Investments

Group EBITDA movement 4QFY18 Vs. 3QFY18

Group EBITDA movement – 4QFY18 Vs. 3QFY18 ₹ Crores 1,931 71 (1,084) 6,579 (140) 5,801 3QFY18
Group EBITDA movement – 4QFY18 Vs. 3QFY18 ₹ Crores 1,931 71 (1,084) 6,579 (140) 5,801 3QFY18
₹ Crores 1,931 71 (1,084) 6,579 (140) 5,801 3QFY18 Selling Result Cost Changes Volume/Mix Others
₹ Crores
1,931
71
(1,084)
6,579
(140)
5,801
3QFY18
Selling Result
Cost Changes
Volume/Mix
Others
4QFY18

Better realisations across the geographies improved selling result

Increase in cost mainly in India along with increase in Raw material cost in Europe.

Volume/mix impact is lower primarily due to lower sales volumes at Tata Steel India

All figures on a continuing operations basis

25

Tata Steel India EBITDA movement 4QFY18 vs 3QFY18

Tata Steel India EBITDA movement – 4QFY18 vs 3QFY18 ₹ Crores 1,458 ( 8 2 3
Tata Steel India EBITDA movement – 4QFY18 vs 3QFY18 ₹ Crores 1,458 ( 8 2 3

Crores

1,458

EBITDA movement – 4QFY18 vs 3QFY18 ₹ Crores 1,458 ( 8 2 3 ) ( 2
EBITDA movement – 4QFY18 vs 3QFY18 ₹ Crores 1,458 ( 8 2 3 ) ( 2

(823)

– 4QFY18 vs 3QFY18 ₹ Crores 1,458 ( 8 2 3 ) ( 2 9 5

(295)

vs 3QFY18 ₹ Crores 1,458 ( 8 2 3 ) ( 2 9 5 ) (164)

(164)

4,823

4,647

3QFY18

Selling result

Cost

Volume/Mix

Others

4QFY18

Selling results increase with better steel realisations

Increase in cost mainly due to wage revision arrears, lower absorption of fixed cost due to lower production and slightly higher imported coal prices

Adverse volume/mix impact due to lower volumes

Tata Steel Europe EBITDA movement 4QFY18 vs 3QFY18

Tata Steel Europe EBITDA movement – 4QFY18 vs 3QFY18 £68mn £13mn £2mn £(24)mn £(2)mn £129mn £72mn
Tata Steel Europe EBITDA movement – 4QFY18 vs 3QFY18 £68mn £13mn £2mn £(24)mn £(2)mn £129mn £72mn

£68mn

£13mn

Europe EBITDA movement – 4QFY18 vs 3QFY18 £68mn £13mn £2mn £(24)mn £(2)mn £129mn £72mn 3 months

£2mn

EBITDA movement – 4QFY18 vs 3QFY18 £68mn £13mn £2mn £(24)mn £(2)mn £129mn £72mn 3 months to
EBITDA movement – 4QFY18 vs 3QFY18 £68mn £13mn £2mn £(24)mn £(2)mn £129mn £72mn 3 months to

£(24)mn

£(2)mn

£129mn

£72mn

3 months to Dec 2017

Selling

Result

Cost

Changes

Production

Volume

Manufacturing

Central

& Other

3 months to Mar 2018

Improved selling result due to increased prices, selling volumes and selling mix

Higher raw material prices increased cost

Production volume increased at mills and downstream units as 3Q was impacted by planned maintenance stops

Manufacturing and Central & Other were broadly stable

Other key developments

Other key developments   ✓ Engineering work is progressing as per plan; Construction work for steel
Other key developments   ✓ Engineering work is progressing as per plan; Construction work for steel
 

Engineering work is progressing as per plan; Construction work for steel making plant has started

Kalinganagar

Expansion includes investments in upstream facilities, 2.2 MTPA Cold Rolling Mill and raw material facilities.

plant 5MTPA

Project cost is Rs.23,500 crores; Rs.16,500 crores up to HRC stage and balance on raw material

facilities and 2.2MTPA cold rolling mill.

expansion

Commissioning: 48 months from zero date

 

Successfully completed Rs.12,693 crores rights issue

Update on rights issue

The issue was oversubscribed 1.20x for fully paid shares and 1.28x for partly paid shares, excluding subscription by Tata group

 

The entire process for the UK pension restructuring is now complete with the new British Steel

Pension Scheme (New Scheme) having been set up in Mar 2018. 69% members have

transferred to the new scheme.

Update on UK Pension

The New Scheme has a non-cash £2.2bn accounting surplus under IAS19; the surplus will continue to support the pension scheme allowing it to run its required low risk investment strategy

This is an optimal and sustainable outcome for pensioners, current employees and the UK business

Agenda

Agenda Business Environment Operational Performance Financial Performance Appendix 29
Agenda Business Environment Operational Performance Financial Performance Appendix 29

Business Environment

Operational Performance

Financial Performance

Appendix

Agenda Business Environment Operational Performance Financial Performance Appendix 29
Agenda Business Environment Operational Performance Financial Performance Appendix 29
Agenda Business Environment Operational Performance Financial Performance Appendix 29
Agenda Business Environment Operational Performance Financial Performance Appendix 29

Standalone Results QoQ Variations

Standalone Results – QoQ Variations Rs Crores 4QFY18 3QFY18 Key Reasons Gross Sales 15,946 15,310
Standalone Results – QoQ Variations Rs Crores 4QFY18 3QFY18 Key Reasons Gross Sales 15,946 15,310

Rs Crores

4QFY18

3QFY18

Key Reasons

Gross Sales

15,946

15,310

Increase in realisations partly offset by lower volumes from TSK

Other operating income

335

286

Higher export related benefits

Raw materials consumed

3,998

4,211

On account of lower production

Purchases of finished, semis & other products

213

91

Impact of inventory movement

Changes in inventories

102

429

Drawdown of inventory due to lower production

Employee benefits expenses

1,409

1,147

Provision for wage revision, partly offset by decrease in expense due

to change in actuarial assumptions

Depreciation & amortisation

935

914

In line with previous quarter

Other expenses

5,750

5,090

Higher purchase of power and stores & spares along with higher maintenance cost, and increase in Royalty.

Other income

220

182

Higher income from mutual funds

Finance cost

731

670

Higher amortization of TSK loan issue expenses

Exceptional Items

1,607

1,115

Primarily on account of provision for statutory demand and claim related to environment and mining matters

Tax

725

773

In line with lower PBT

Other comprehensive income

13

136

Re-measurement gains on actuarial valuation of employee benefits offset by loss on fair value adjustments of non-current investments

Consolidated ResultsQoQ Variations

Consolidated Results – QoQ Variations Rs Crores 4QFY18 3QFY18 Key Reasons Income from operations 35,737

Rs Crores

4QFY18

3QFY18

Key Reasons

Income from operations

35,737

33,100

Improved realisations across geographies and higher deliveries in Europe

Other operating income

395

347

Increased primarily in India

Raw materials consumed

10,370

10,202

In line with previous quarter

Purchases of finished, semis & other products

2,840

2,778

In line with previous quarter

Changes in inventories

467

148

Impact of inventory movement

Employee benefits expenses

4,583

4,426

Primarily in Tata Steel India offset by reduction in provident and other funds contribution in Europe

Depreciation & amortisation

1,512

1,475

Almost at par with previous quarter

Other expenses

11,374

10,196

Increase primarily in India and at Europe on account of higher stores & spares partly offset by lower repairs and maintenance cost

Other income

275

226

Increased primarily in India

Finance cost

1,481

1,327

Primarily related to India

Exceptional Items

11,376

(1,116)

Primarily due to non-cash gain in Europe with formation of new BSPS scheme, partially offset by provisions in India

Tax

576

951

Tax credit due to increase in tax losses recognised for deferred tax

purposes at Europe

Other comprehensive income

4,509

189

Re-measurement gain on actuarial valuation of employee benefits

Contact

Contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: Sandep.agrawal@tatasteel.com 32
Contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: Sandep.agrawal@tatasteel.com 32
Contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: Sandep.agrawal@tatasteel.com 32

Investor enquiries :

Sandep Agrawal Tel: +91 22 6665 0530 Email: Sandep.agrawal@tatasteel.com