tata steel (thailand) welcomes...tsth: on 18th june - tsth employees who were born in april to june...

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Tata Steel (Thailand)

welcomesAnalysts and Bank Officials

21st August 2015[Results Presentation : Financial quarter ending 30th June 2015]

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Disclaimer

Statements in this presentation describing the Company’sperformance may be “forward looking statements”within the meaning of applicable securities laws andregulations. Actual results may differ materially fromthose directly or indirectly expressed, inferred or implied.Important factors that could make a difference to theCompany’s operations include, among others, economicconditions affecting demand/supply and priceconditions in the domestic and overseas markets inwhich the Company operates, changes in or due to theenvironment, Government regulations, laws, statutes,judicial pronouncements and/or other incidental factors.

Content

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• Corporate Citizenship

• Economic Scenario & Steel Business

• Q1FY16 Performance

• Business Outlook

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Safety & Environment

3.24

1.31

0.770.47

0.33

0.67

0

FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16Q1

Loss Time Injury Frequency Rate

0.827

0.961

0.814

0.614 0.587 0.571 0.606

FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16Q1

CO2 Emission(Tons per ton of cast steel)

Key Initiatives taken up:• Consequence Management for contractors launched.• Six step contractor safety management process revamped.• Bimonthly safety campaigns taken. Focus on Energy Isolation and

Working at Height in Q1.• Energy conservation through Project SAVE.

Good Good

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Community Welfare & CSR

NTS: On 5th June - Volunteers from NTS and TSTH jointly afforest Community Forest, Borwin, Sriracha Province on World environmental day.Additionally The employees participated in several activities with Ban Khao Hin school’s student.

TSTHG: On 8th May – Donation of 61,500 Baht monetary to Thai Red Cross for Nepal earthquake disaster relief .

TSTH: On 18th June - TSTH employees who were born in April to June participated in first ever “Happy Society … Happy Birthday” activity at Ban Bang Khae. The employees did several activities with Ban Bang Kae’s elderly such as karaoke, games and giving lunch.

SISCO: On 30th June - SISCO’s employees visited Muang Noi school for “Bring the light back to the community campaign” which is a new initiative. The purpose of the campaign is to pass on basic knowledge on electrical equipment to the student for repairing broken electrical equipment.

SCSC: On 29th May – SCSC employees participated in CSR activity for birthday by offering lunch to students at Rayong Punyanukul school.

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Business Environment Thai GDP Thai Industries Sentiment Index

Good Good

Good Good

• Stagnant economy. Q1 GDP growth on Tourism and Government spending.• Weak purchasing power pulling down sentiment. • Overall Steel consumption in Thailand declined.

3.2%

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Key market happenings Domestic Rebar market stable in April and May. Have started declining since June.

Decreasing price of billets from China has created serious uncertainty in the market. Dealers and

consumers only buying Rebars for immediate consumption.

Public spending behind schedule (45 % till June).

Farm economy contracted 4.2% y-o-y in first half.

Domestic Car sales dropped by 16.3% in H1 to 369 K. Full year projection revised to 850 K (from

950 K. earlier). Exports rose 2.8% to 576 K. Full year projection 1.2 million vehicles. Vehicle output

dropped by 1. 8% to 935 K in H1. Full year projection 2.05 million vehicles.

VAT @ 7% to continue for one more year (till Sep’16) in avoid affecting already weak purchasing

power.

Government approved proposal to build three motorways worth 160 billion baht. This will be

financed by government.

Wire rods imports from China gone up by 20% y-o-y (593 KT in Jan-May’15 compared to 492 KT in

same period last year). Prices continue to decline each fortnight.

Domestic and imported scrap price declined but not in line with Chinese billet. Net result that

more steel mills in SEA buying billets rather than running EAF all the time.

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Steady increase in value added rebar sales

Unit : Tons

10

5,100

10,700

7,900

0

2000

4000

6000

8000

10000

12000

FY15 Q1 FY15 Q4 FY16 Q1

CAB

12,600

29,000

23,200

0

5000

10000

15000

20000

25000

30000

35000

FY15 Q1 FY15 Q4 FY16 Q1

Dom. DB SD50

900

2,400

3,300

0500

1000150020002500300035004000

FY15 Q1 FY15 Q4 FY16 Q1

Dom. DB Seismic (SD40S)

Good Good

Good

Unit : TonsUnit : Tons

Revenue from new products

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FY16 Quarter1 Sale

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Unit : Tons

Remark : Round up to nearest thousand

299,300 291,100 270,500

0

100000

200000

300000

400000

FY15 Q1 FY15 Q4 FY16 Q1

Total SaleGood Good

Good Good

39,500

18,400 18,900

0

10000

20000

30000

40000

50000

FY15 Q1 FY15 Q4 FY16 Q1

Dom. LCWR35,900

17,200

24,600

0

10000

20000

30000

40000

FY15 Q1 FY15 Q4 FY16 Q1

Total Export

168,800209,000

182,200

0

50000

100000

150000

200000

250000

FY15 Q1 FY15 Q4 FY16 Q1

Dom. Rebar+CAB

Unit : Tons

Unit : TonsUnit : Tons

Financial Performance

13

232

15

216

Q1FY15 Q4FY15 Q1FY16

EBITDA in MB Good

18

-357

11


PAT in MB

Include the impact of DTA write off of 200 mb.

Good30

-152

30


PBT in MB Good

5,998

4,937 4,415


Net Sales in MBGood

Q1 highlights

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Zero Lost Time Injury. NTS and SCSC completed 3 and 2

years LTI free respectively.

NTS and SCSC shortlisted for final audit for Prime Minister

Industry award in Environment and Safety respectively.

Successful sourcing of alternate metallic.

Fixed and Variable costs below previous year.

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Q2 FY 16 : Business Outlook • BOT expect GDP to grow by 3% in 2015 but the drought impact has not yet

been factored in.

• Baht depreciating higher than expected.

• Chinese getting more aggressive on exports. RMB depreciation is an area of concern for steel makers in the region and around the world. Will have detrimental impact on steel prices in the country and region.

• BOI in principle approved surcharge for Low Carbon Wire Rods. Customers putting lot of pressure for review.

• Filed for sunset review of HCWR anti dumping rate.

• Supplies to Xayaburi Project in Lao to start from August.

• Zero imported scrap in Q2.

Contact InformationFor investor enquiries contact:

Ms. Pratana Sinhaneti

Tel: +66 2937 1000 ext. 1460

Email: [email protected]

For media enquiries contact:

Mrs. Arisara Na Ranong

Tel: +66 2937 1000 ext. 2420

Email: [email protected]

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mailto:[email protected]:[email protected]

Thank you for kind attention

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tata steel (thailand) welcomes...tsth: on 18th june - tsth employees who were born in april to june...

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