company performance fiscal year 2021
TRANSCRIPT
Company performance
Fiscal Year 2021
(Year ended March 31, 2021)
1
Agenda
Update on business environment
TSTH performance in FY21
Business outlook for FY22
2
Global steel production continues to grow albeit
at a slower rate
The global steel industry is looking forward to normalization in 2021
Key developments in the industry include digitization & automation, infrastructure
strengthening and energy transformation
Buzz words - Climate Change and Sustainable Development
Source : World Steel Association (June 3, 2021) , Statista Research
1,623 1,631 1,735
1,826 1,874 1,878 1,900
-3.1%
0.5%
6.4%5.2%
2.7%
0.2%
1.2%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2015 2016 2017 2018 2019 2020 2021F
Annual Crude Steel Production
Volume (Mt) Growth (%)
UoM: Million Tons
3
Changing dynamics in global steel industry
Source : World Steel Association (Jun 2021)
:2010 :2020
Steel manufacturing is shifting to Asia. Proportion increased from 64.1% in 2010 to
73.9% in 2020
China’s share of global steel production jumped from 44.5% in 2010 to 56.7% in
2020
4
ASEAN-6 Steel consumption expected to recover
marginally in 2021
Countries that imposed strict lockdown saw major drop in consumption in 2020
Public investment key to success in 2021
Source : SEASI Statistics, STECO
48.6 52.4
58.6 63.1
66.1 70.6
78.5 76.3
80.0 80.3
70.6 74.9
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F
Indonesia Malaysia Philipines Singapore Thailand Vietnam
ASEAN-6 : 2020, 2021F
-12.1%, +6.1%
Vietnam : -4.0%,+5.8%
Thailand : -11.3%,+4.5%
Philippines : -15.5%, +6.0%
Malaysia : -38.1%,+7.5%
Indonesia : -5.3%, +6.0%
Singapore : -30.9%, +25.0%
5
Thailand steel consumption declined in 2020;
expected to recover partially in 2021
Source : Iron and Steel Institute of Thailand , FTI and TSTH Analysis
9,542 9,318 9,0327,799
7,186
12,61511,326
12,057 12,227
10,407
1,295 1,553 1,754 1,385 1,111
20,862
19,090 19,33418,641
16,48217,300
0
5,000
10,000
15,000
20,000
2016 2017 2018 2019 2020 2021-F
Growth 21/20
4 ~ 5 % -12%
-15%
-8%
-20%
Growth Rate 20/19
Apparent steel
use
Import
Production
Export
Good
Unit : ‘000 Tons
As cross border movement of goods was affected due to lockdowns in different countries,
there was higher reliance on local production during 2020.
Downstream industries like Auto expected to revive in 2021. Key demand driver i.e. Public
Spending depends upon Govt’s ability to manage Covid.
6
Construction sector plays a meaningful role in
Thailand
8.4
7.8 7.8
7.7
8.4 8.4
7.2
7.4
7.6
7.8
8.0
8.2
8.4
8.6
2016 2017 2018 2019 2020 2021-F
Construction Investment as per percentage of GDP
Source : NESDC (May 2021) , Krungsri Research
Improvement in 2020 supported by Public spending. Private sector investment likely to
remain muted for next 2-3 years.
Projects linked to the Eastern Economic Corridor (EEC) accounted for 38% of total
infrastructure investment.
2021 budget has almost 30% higher outlay for Ministry of Transport. Implementation
depends upon Govt’s ability to fund projects on time.
7
Agenda
Update on business environment
TSTH performance in FY21
Business outlook for FY22
8
19,701
22,246 22,222
20,125
22,017
18,000
18,500
19,000
19,500
20,000
20,500
21,000
21,500
22,000
22,500
FY17 FY18 FY19 FY20 FY21
Revenue from sales and related services
1,690
1,256
448
719
1,357
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY17 FY18 FY19 FY20 FY21
EBITDA
441
585
(148)
111
688
-200
-100
-
100
200
300
400
500
600
700
800
FY17 FY18 FY19 FY20 FY21
Profit (loss) Before Tax
1,262
1,217
1,154
1,201
1,303
1,050
1,100
1,150
1,200
1,250
1,300
1,350
FY17 FY18 FY19 FY20 FY21
Total Sale
Highest sales volume since 2008; improved Profit before
tax
Unit : ‘000 Ton Unit : Mn THB
Good Good
Good Good
Unit : Mn THB
9
844
682641
729786
0
100
200
300
400
500
600
700
800
900
FY17 FY18 FY19 FY20 FY21
Domestic Rebars
256
360332 317
399
0
50
100
150
200
250
300
350
400
450
500
FY17 FY18 FY19 FY20 FY21
Domestic Wire Rods
85
113
136
119
79
0
20
40
60
80
100
120
140
160
FY17 FY18 FY19 FY20 FY21
Export
Unit : ‘000 Ton
Good Good
Good
1,177 1,104
1,018 1,082
1,224
-
200
400
600
800
1,000
1,200
1,400
FY17 FY18 FY19 FY20 FY21
Total DemesticGood
Unit : ‘000 Ton
Higher domestic sales to offset drop in exports
10
0.48
0.370.34
0.20
0.32
FY17 FY18 FY19 FY20 FY21
Debt to Equity Ratio (Times)
Financial KPIs improved in Fy21
Good
Good
Good
8.56
5.63
2.01
3.55
6.13
FY17 FY18 FY19 FY20 FY21
EBITDA margin (%)
10.39
6.91
(0.38)
2.22
8.78
FY17 FY18 FY19 FY20 FY21
ROIC (%)
1.40
1.78 1.73
2.72 2.63
FY17 FY18 FY19 FY20 FY21
Current Ratio (Times)Good
11
590 592 588 581 569
FY17 FY18 FY19 FY20 FY21
Steel Plant Power (Kwh/t)-SISCO Plant
Operational KPIs continue to improve
Good
GoodGood
Good
89.65% 88.98% 89.45% 89.66% 89.91%
FY17 FY18 FY19 FY20 FY21
Steel plant Yield (%)-NTS Plant
12.21
11.09 11.52
11.83 11.13
FY17 FY18 FY19 FY20 FY21
Steel Plant Natural Gas (CBM/t)-SCSC Plant
1.95 1.88 1.75 1.73 1.70
FY17 FY18 FY19 FY20 FY21
Graphite Electrode EAF (Kg/t)-NTS
12
Awards & Recognitions
Thailand Sustainability Investment Award
(THSI)Sustainability Disclosure Award
Certificate of Carbon Footprint for Organization CSR – DIW Continuous Award
13
Awards & Recognitions (Cont.)
CSR – DPIM Continuous Award Thailand Labour Management Excellence Award
Thailand Kaizen Award Green Mining Award
Green Star Award
14
Agenda
Update on business environment
TSTH performance in FY21
Business outlook for FY22
15
Ongoing steel industry restructuring in China expected to support global prices
Huge infrastructure strengthening budgets by US, China, India and ASEAN countries
‘Thailand First’ and ‘Made in Thailand’ policy to support local construction materials
Domestic players to gain from elevated international freight rates
Emergence of new variants and slow vaccine rollout in ASEAN region has resulted in
fresh lockdowns and restrictions in the region
3rd wave of Covid has adversely impacted business sentiment in Thailand. Recent
closure of construction sites in Bangkok and its vicinity has aggravated the problem
Business outlook for Fy22
Commodity boom witnessed since Nov’20 expected to moderate in next
few quarters. However steel prices are expected to stay elevated (due to
reasons mentioned above) in an uncertain environment
16