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Tata Steel (Thailand) welcomes Financial Analysts 15 th February, 2013

Tata Steel (Thailand) welcomes Financial Analysts 15 th February, 2013. Agenda. Safety, Environment & Corporate Citizenship Thailand Economic Situation Steel Business in Thailand in FY13 TSTH Performance in Q3 FY13 & YTD FY13 Business Outlook for Q4 FY13. 1.

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Tata Steel (Thailand) welcomes Financial Analysts 15 th February, 2013

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  1. Tata Steel (Thailand) welcomes Financial Analysts 15th February, 2013

  2. Agenda • Safety, Environment & Corporate Citizenship • Thailand Economic Situation • Steel Business in Thailand in FY13 • TSTH Performance in Q3 FY13 & YTD FY13 • Business Outlook for Q4 FY13 1

  3. Safety & Environment : Best Ever Performance in FY13 Loss Time Injury Rate Good Good 2

  4. Community Welfare : Highlight in Q3 FY13 • Environment Support • SCSC staff participated in local activity by building dams on November 9. • Releasing blue crabs in ocean with Baan Pa-Yoon Fishing Boat Association. • Environment Support • SISCO joined 5 S activity at Ban khrua temple on October 30. • Mangrove Reforestation by TSTH to dedicate the merit to H.M. the King, on November 23. • Medical Welfare • NTS Supported Mobile clinic in enclosing community and distributed medicines on November 17. • TSTH organized blood donation activity at Siriraj Hospital on the eve of H.M. King’s birthday, December 4. “Grow Smart with Tata Steel” Grow Smart with Tata Steel present the book corners for the 144th – 148thschools at Chaiyapoom Province on November 6 - 7. The book corners will be handed over to the 154th – 158th schools in Kalasin province on February 27 – 28.

  5. Agenda • Safety, Environment & Corporate Citizenship • ThailandEconomic Situation • Steel Business in Thailand in FY13 • TSTH Performance in Q3 FY13 & YTD FY13 • Business Outlook for Q4 FY13 4 1

  6. Thailand has shown robust growth in H2 CY 12 and is expected to continue at 5% CAGR in CY13 Automotive & Public Construction steering Thai Economy

  7. Agenda • Safety, Environment & Corporate Citizenship • Thailand Economic Situation • Steel Business in Thailand in FY13 • TSTH Performance in Q3 FY13 & YTD FY13 • Business Outlook for Q4 FY13 6 1

  8. Consequently, Steel Consumption is better than estimate at 12% CAGR over 2011… however, import growth is 23% *ISIT : Iron & Steel Institute of Thailand

  9. In Longs, though the CAGR over 2011 is 8.5 %, import growth is 20% causing injury in Wire Rods & Bars 2007 2008 2009 2010 2011 2012 E *ISIT : Iron & Steel Institute of Thailand

  10. TSTH Wire Rods Market Share adversely affected by Chinese imports Reference Market Share %

  11. Agenda • Safety, Environment & Corporate Citizenship • Thailand Economic Situation • Steel Business in Thailand in FY13 • TSTH Performance in Q3 FY13 & YTD FY13 • Business Outlook for Q4 FY13 10 1

  12. Revenue & Volume Performance : Good recovery to touch best numbers after 5 quarters Sales Volume in KT Revenue in Billion Baht Fast response by the Company to the demand pick up in Q3 – Increased market share in rebars.

  13. % High end Mix taken a slight dip due to Chinese imports.. expecting to see improvement post AD help 320 K 301 K 296 K 230 K 209 K 180 K * Tata Steel (Thailand) launches Seismic Rebars for Earthquake prone areas - First time in Thailand

  14. Financial Performance : Lower PBT loss in Q3 Fy13 compared to Q3 Fy12… YTD EBITDA improved by 55% over last year despite tough business conditions Turnaround efforts yielding results – Company in cash profit

  15. Agenda • Safety, Environment & Corporate Citizenship • Thailand Economic Situation • Steel Business in Thailand in FY13 • TSTH Performance in Q3 FY13 & YTD FY13 • Business Outlook for Q4 FY13 14 1

  16. Business outlook & guidance Stability in Thailand economy and growth in steel demand were key highlights of Qtr3 FY’13. Against this backdrop and supported by efforts on tight working capital management, the company has shown steady growth in sales volume with a higher positive EBITDA as compared to Qtr2 FY’13 and Qtr3 FY’12. For the Apr – Dec’ 12 period, the company is in cash profit thereby showing an improving trend in its performance. In terms of outlook, though the global economy remains fragile, we expect Thailand to be resilient and construction sector to help in driving steel demand growth. Imports from China remain our biggest concern and the Govt. of Thailand has already taken the steps in the right direction by initiating the anti dumping investigations. We expect the AD announcement to come in Wire rods also (like HR Coils) to protect the Thailand steel industry from unfair imports. In terms of business operations, we expect to be in cash profit in this quarter and endeavour to complete the turnaround to bring back the company on growth path.

  17. Tata Steel (Thailand) expects to strengthen its cashprofit performance in Q4 FY13 • Outlook for Q4 FY 13 : • Q4 FY13 sales growth : 12 % over LY same quarter • Maintain Cash profit & EBITDA performance • Strengthen market position in rebars by offering Cut & Bend • solutions + Earthquake resistant rebars • Await AD announcement by Government to regain lost share in wire rods & SBQ

  18. Thank You

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