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Sahaviriya Steel Industries PLC
SET - CIMB Thailand Corporate Day
13 March 2013
1
The information contained in this presentation is intended solely for your personal reference only. If you
are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any
action in reliance upon this material.
This presentation is not intended to substitute your own analysis and investigation, and should not be
considered a recommendation to any recipient of this presentation. Some statements contained herein
are forward-looking statements identified by the use of forward-looking terminology such as “may”, “will”,
“expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words, which are subject to
various risks and uncertainties. These statements include statements with respect to Sahaviriya Steel
Industries Public Company Limited (the “Company” or “SSI”)’s, Sahaviriya Steel Industries UK Limited
(“SSI UK”)’s and their subsidiaries (collectively referred to as “SSI Group”) corporate plans, strategies and
beliefs and other statements that are not historical facts.
This presentation is prepared based on the assumptions and beliefs of SSI Group’s management in light
of the information currently available to the Company involving risks and uncertainties which may cause
the actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Nothing in this
presentation is, or shall be relied on as promise or representation of the Company as to the future.
Disclaimer
2
Overview of SSI
Agenda
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
3
Capacity
3.6 mtpa(2)
100,000 dwt(1) x 2 14 mmts through-put
HotCoil CleanStrip®
4 mtpa(2) 1 mtpa(2)
CRC 1.2 mtpa(2)
EG 0.24 mtpa(2)
Domestic capacity
Share n/a n/a 55% 66% 43% 100%
1) dwt = Deadweight ton
2) mtpa = million tons per annum
3) SV Group includes Sahaviriya Group, Sahaviriya Inter Steel Holdings, and Viriyaprapaikit Family
100% 51% 3.7% 35.19%
Finished products
out-bound
Raw materials
in-bound
Integrate World Class Steel Businesses
Innovate Premium Value Products
Major shareholders
as of 27 Feb 2013 3)
Coated
Steel Sheet
Cold Rolled
Coil
Hot Rolled
Coil
Deep-sea
Port
Iron and Steel
Making
99.99%
Engineering & Maintenance Service
Long-term
Strategies
ASEAN’s Largest Flat Steel Producer
36%
21%
35%
4% 4%
SV Group Vanomet Others JFEMISI
4
Leading Market Position in ASEAN
3.6
4.0
1.2
Thailand
& Europe
1 2 3 4 5 6 7 8
Target Customers
(Geographically)
Thailand Thailand Indonesia Malaysia Philippine
Key Products
CRC
HRC – P/O
HRC – Gen Use
Slab
Capacity (mtpa)
CRC
HRC
Slab
Integration with UK operation provides SSI with a leading market position as an
integrated producer in ASEAN
Remark : CRC capacity relates to SSI’s JV, Thai Cold Rolled Steel Sheet Plc.
Source : Company websites and Annual reports
0.00
1.00
2.00
3.00
4.00
1 2 3 4 5 6
5
SSI customers: Sectors & Applications
Hot Rolled Coil
P/O Coil
Finished Coils Sectors Applications
Commercial Grade
General Steel Pipes
General Steel Structure
General Steel Cut-to-Sheet
Unique-Grade
Steel Pipes
Steel Cut-to-Sheet
Floor Plate Steel
High-Grade
Re-rolling
Gas Cylinder & Pressure
Vessels
Automotive & Home and
Electrical Appliances Parts
Shipbuilding and High
Strength Structure
Atmospheric Resistant Steel
and Line Pipe
Machinery and Industrial Tools
6
Core Strengths
Premium Value Products: Focus to innovate high value-adding products with
higher margin – account for 37% of total sales in year 2012
Integrated World Class Steel Business: Iron & Steel Making Business in North
East UK and HRC Business and downstream facilities in Thailand
Location Competitive Advantage: (facilities in Thailand and United Kingdom)
UK: Higher grade ore at lower price in Atlantic Basin, shorter deliver time and
freight cost saving, benefit from EUROPE debt situation from Pound Currency
depreciation and cheaper raw material procurement, lower overall cost.
Thailand: High growth in ASEAN market particularly for high-grade flat
products, lower labour & overhead cost, shorter distance & lead-time to
customers
Diversify risk strategy: SSI UK supplies slab internally (SSI) and externally, and
vice versa for SSI
Strong market position: The leading flat steel producer in ASEAN
Synergies: Multiple synergy opportunities identified
7
Agenda
Overview of SSI
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
8
2011 GDP and Apparent Steel Use per capita
ASEAN: Malaysia and Thailand are the most outstanding countries both in GDP and Apparent Steel Use per capita.
China
Japan
India
Malaysia
Thailand
Vietnam
Indonesia Philippines
World
Myanmar
ASEAN
UK
Canada
US
BRICs
Mexico
Nigeria
Turkey
Brazil
Russia
Australia
0
50
100
150
200
250
300
350
400
450
500
550
0 10 20 30 40 50 60 70
Ap
pare
nt
Ste
el U
se
per
Cap
ita (
Kg
)
GDP per Capita ('000 USD)
Source : IMF, World Steel Association, Economic Watch
Note:*For illustration purpose, South Korea’s and Singapore’s data are not included in the chart.
Country
GDP per
Capita
('000 USD)
Apparent
Steel Use
per Capita
(Kg)
South
Korea* 22 1,156
Singapore* 49 822
China 5 460
Japan 46 507
India 2 59
Malaysia 10 310
Thailand 5 219
Vietnam 1 125
Indonesia 4 45
Philippines 2 50
World 10 218
Myanmar 1 23
ASEAN (e) 5 94
UK 39 148
Canada 50 416
US 48 285
BRICs (e) 5 260
Mexico 10 158
Nigeria 0 12
Turkey 10 342
Brazil 13 123
Russia 13 296
Australia 66 280
9
AEC & Impact on Thai Steel Industry
Automotive & Parts
Electrical & Electronics
Food Production Hub
(Packing)
Machinery and Metal
Working Production
Base
Manufacturing &
Assembly Hub
Electrical & Electronics
Thailand is center of ASEAN production
hub in electrical appliances
Food Production Hub
(Packing)
Thailand is center of world food
factory. Canned food output has been
grown up slightly. Mechanization of
agricultural process will increase more
output in canned food. Tourism Hub
Potential AEC-impacted sectors SSI targets high grade market, though impacted, growth is promising
Automotive & Parts
Thailand is center of ASEAN
production hub for automobiles.
Remark :* White goods include fan, rice cooker, refrigerator, air conditioner and compressor
Source : Thailand Automotive Institute , FTI, and ISIT
0
10
20
30
40
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
White goods (MillionUnits)
CAGR 02-12
5.1%
0
200
400
600
800
1000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Canned Seafood (Unit : '000 tons)
Canned fruit (Unit : '000 tons)
CAGR 02-12
4.9%
0
500
1000
1500
2000
2500
3000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Passenger car ('000 units)
Commercial car ('000 units)CAGR 02-12
15.4%
0
10
20
30
40
50
60
2011E
Million tonnes Apparent Steel Consumption in ASEAN
Production Import Export Consumption
0
10
20
30
40
50
60
2011E
Million tonnes Apparent Steel Consumption in ASEAN
Production Import Export Consumption
10
Thailand flat steel demand: the biggest and most sophisticated in ASEAN
Application Midstream & Downstream Upstream (Iron & Steel Making)
Checkered
Source : WSA, ISIT, SEASI, Federation of Thai Industry
4.9
6.4 1.2 0.8
HRC P/O
Hot Rolling
2.5 3.1
5.6 MT
Cold Rolling
CRC
2.0 MT
Coating
Coated
Local (MT)
Net Import (MT)
2012 Domestic
Demand
11.3 MT
Total Flat
Products
Slab
Thailand Flat Steel: largest and most sophisticated consumption in ASEAN, approximately 6.4 mtpa or 57% of total consumption served by net import
1.1 2.6
MT
ASEAN’s industrialisation and urbanisation has driven and will drive consistent high growth.
LONG: CAGR 98-11
6.8%
FLAT: CAGR 98-11
9.2%
High growth, but served by import due to lack of raw material regionally
Apparent Steel Consumption High-grade Flat Steel Products Consumption
ASEAN steel demand is now 50 million tons per annum and is forecasted to constantly grow at 5.3%
0
10
20
30
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E
0
10
20
30
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E
47% 54%
53% 46%
1998 2011
Long
Flat
90
80
70
60
50
40
30
20
10
CAGR 01-11
5.3%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20 17 2018 2019 2020
Forecast
CAGR 12-20
5.3%
3.7 MT
11
4.93 5.35
9.87 11.26
0
2
4
6
8
10
12
14
16
18
2011 2012
Mill
ion
MT
Flat
Long
0.5
6.1
2.5
0.8
0.6
6.9
2.8
1.0
HR Plate
HR Sheet
CR Sheet
Coated
Inner Chart =2011
Outer Chart= 2012
Unit: Million MT
Apparent Finished Steel Consumption Flat Steel Consumption
Car/ HA/ EA Production • Steel consumption in Thailand in 2012
increased 12.2% from growth in flat and
long products of 14.1% and 8.6%,
respectively.
• Growth in flat products consumption was
mostly driven by the 70% rise in vehicle
production consequent to the
government’s tax-rate on first-time car
buyer.
Thai Steel Market
-
500
1,000
1,500
2,000
2,500
Cars and HA/EA Production 2012
-
2,000
4,000
6,000
8,000
10,000
Cars and HA/EA Production 2011-2012
In Thousands
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Car Fridge A/C Car Fridge A/C
‘11 ‘12 ‘11 ‘12 ‘11 ‘12
Source : ISIT
Source : FTI and BOT
Source : ISIT
1,419
1,650
1,905 1,830
Q2/12 Q3/12 Q4/12 Q1/13
Thailand HRC Outlook
12
HRC Apparent Steel Supply (in ’000 tons)
Source: Iron and Steel Institution of Thailand for 2008-2012
* Year 2013 is forecasted upon actual data and SSI’s estimate
Q2/12 Q3/12 Q4/12 Q1/13
Domestic Production 533 654 601 730
Import 889 1,003 1,314 1,100
Export 3 7 11 0
Total Supply
1,419
1,650 1,905 1,830
HRC apparent steel supply is expected to decline to 1.83 MT in Q1/2013, or -4% QoQ, due to
decrease in import.
HRC apparent steel supply in 2013 is forecasted to grow by 6.6% YoY to approx. 7.08 MT from
6.64 MT in 2012.
Source: Iron and Steel Institution of Thailand for Q2-Q4/12,
and SSI’s estimate for Q1/13
4,986
4,389
5,848
5,075
6,642
7,080
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008 2009 2010 2011 2012 2013f
Domestic Production
Import
Export
Total Supply
2012 2013f
2,552 3,380
4,113 3,700
24 0
6,642 7,080
13
Agenda
Overview of SSI
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
14
1.8
3.2 3.4
Year 2012 Year 2013 Year 2014
0.7 0.8 0.8 0.9 0.7
1.5
2.3
3.2
Q1 13 Q2 13 Q3 13 Q4 13
Slab production (MT)
Cumulative annualproduction (MT)
Slab Production Plan (SSI UK)
The Continuous Journey of SSI UK Slab Shipments
Customer in UK 6.0kt
Customer in Germany 2.0kt
Customer in Italy 26.7kt
15
SSI #1 - #12 Vessels
Shipped before 31 Sep 2012
Totaling 838 kt
SSI#13 Yasa Eagle
61kt
SSI#14 JS Amazon
56kt
SSI#15 Alum Padu
66kt
SSI#16
Triton Gannet
62kt
SSI#17 Great Hope
61kt
SSI#18 Tarang
59kt
SSI#19 Voyager
52kt
SSI#17 Great Eagle
60kt
SSI#21
Furness Karumba
50kt
SSI#22 Athena
60kt
SSI#23 Magsenger2
84kt
SSI#23 Prime Rose
65kt
Turkey #1 - #6 Vessels
Shipped in 2012
Totaling 232 kt
Turkey#7 Slavnik
45kt
Turkey#8
Coral Queen
45kt
SSI UK’s outside customers
16
Customer in UK
• Plate Mill for structural and high
end plate with capacity of 0.3
million tons per year.
Customer in Italy
• Plate Mill for general and high
strength plate such as API,
pipe, etc with capacity of 0.35
million tons per year.
Customer in Germany (Q3/12)
• Plate Mill for high end
application of machine tools
and part with capacity of 0.15
million tons per year.
New customer in Mexico
• Fully integrated flat and long
carbon steel producer of HR and
CR for automotive and high end
application
Customer in UK
• Hot Strip Mill with total capacity
of 1.0 million tons per year.
Customer in Turkey
• Hot Strip Mill for high grade
pipe and API with total
capacity of 3.0 million tons
per year.
Q2/13
Q4/12
Q3/12
Q4/12
Q3/12
Q2/12
Current
17
Sales Breakdown by End-user Segments
Auto 4%
HA/EA 1% M/C
0% Energy
1%
General industries
27%
Year 2012
Auto 7%
HA/EA 2%
M/C 0%
Energy 2%
General industries
23%
Year 2013 f
Construction
67%
Construction
66%
Target Plan
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
20122012 (Actual)
20132014
0.020 0.017
0.440
0.780 0.40
0.38
0.33
0.19
Qty (MMT) Other Slabs
SSI-UK Slab
Introduction of SSI UK slabs to high end customers project
(Others 42%)
Purpose: To introduce SSI UK’s slabs use in high end applications such as cold
rolling, HA/EA and automotive.
(SSI UK
80%) (SSI UK
58%) (SSI UK 5%)
(Others 95%)
0.42
0.97
Important development in Q4
Cold rolling application:
Auto, HA/EA application:
18
0.39
(SSI UK 4.5%)
(Others 95.5%)
0.77
- Start supply commercial lot to new cold-roll customer
- Got approval for 2nd trial lot from current cold-roll customer and plan to start supplying commercial lot in Q1/13
- Under materials approval stage, SSI has already submitted steel samples of
SSI-UK slab to 3 car producers. One of them has already approved SSI materials in early Q1/13
(Others 20%)
19
Agenda
Overview of SSI
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
20
HRC Business Performance
COST*
USD/ton
555-565 725-735 675-685 660-670 630-640 575-585 610-620 585-595
Note: * Import Cost of slab is based on CIF
434 371
301
655
342 349
824
645
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Imported Slab Volume (k tons)
736
761
807
783
752
731
700 694
21%
14% 15% 17%
12%
16%
12% 11%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
600
800
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Avg. Selling Prices HRC Rolling Margin
907
57 214 211
569
-166
287 367
56.7
6.2
17.8
23.6
37.2
-12.1
15.4 18.5
-20
-10
0
10
20
30
40
50
60
-400
-200
0
200
400
600
800
1,000
1,200
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
US
D/t
on
Mill
ion B
aht
EBITDA (left-axis) EBITDA/ton (right-axis)
524
330
414
303
497
423
588
647
539
279
371 376
500
368
627 602
340 337
224 202
278 230
418 404
-500
-400
-300
-200
-100
0
100
200
300
400
500
200.00
300.00
400.00
500.00
600.00
700.00
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Tho
usa
nd
s
Sale Volume (k tons) Production (k tons) Productivity (ton/hr)
10% 8% 10% 11% 7% 4% 8% 8% 3%
0% 7% 2% 7%
9% 3% 7%
11% 13%
11% 12% 11%
8% 14% 11%
16% 16% 15%
14% 10% 11%
15% 12%
59% 62% 57%
61% 64% 69% 61% 63%
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 . 2011 2012
Commercial
Unique
High-Grade
Innovated Value Product
Innovated Value Product(High-Grade)
21
Premium Value Products accounted for 31% or 203 k tons in Q4/12
Premium Value Products accounted for 37% or 802 k tons in year 2012 or +31% YoY
Innovated Value Products sold in Q4/12 = 81 k tons, down from 90k tons in Q3/12
Innovated Value Products sold in year 2012 = 308 k tons, up from 170 k tons in year 2011
or +82% YoY
HRC Business - Sales Ratio of Premium Value Products
31% 37%
21% 21% 20% 16%
15% 19%
19% 19%
18%
19% 22% 31%
30% 27%
37% 33%
16% 14%
3% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Q1/12 Q2/12 Q3/12 Q4/12
SSI
Other Domestic Producers
Import- Carbon Steels
Import- Carbon Steels & PO
Import- Other (Alloy Steel)
22
HRC Domestic Market Share
SSI’s market share was 33% in Q4/12, down from 37% in Q3/12; while shares of imports was up
from 60% to 67% in Q4/12.
Total apparent steel supply in Q4/12 has grown by 15% QoQ to approx. 1.9 MMT, of which 602 k
tons were supplied by SSI and the remaining were supplied by imports.
54% 59%
60%
* Recently identifiable from designated harmonized code for alloy steel (previously classified as stainless steel)
67%
Slab production increased from 620 k tons in Q3/12 to 668 k tons in Q4/12
Slab sale decreased from 679 k tons in Q3/12 to 666 k tons in Q4/12,
with 25% sold to external parties
Slab spread improved from 44 USD/ton in Q3/12 to 54 USD/ton in Q4/12
Iron and Steel Making Business
Slab Production and Sale in Q4/2012
23
477
335
620 679 668 666
Slab Production Slab Sale FY2012
551 544 503
544 500
449
Q2 Q3 Q4
Avg Selling Price Avg RM Price Slab Spread
44
54
Volume in ‘000 tons SSI UK’s Slab Spread (USD)
Q2 Q3 Q4 Q2 Q3 Q4
7
1,765 1,680
24
Agenda
Overview of SSI
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
-1,879
-3,577 -3,146 -2,078
-2,841
-5,022 -4,782 -3,259
Consolidated Performance
25
Source : WSA press release , Oct, 2011
Q1/12 Q2/12 Q3/12 Q4/12 Y2011 Y2012
RE
VE
NU
E
EB
ITD
A
NE
T P
RO
FIT
80%
19%
0% 0%
HRC
Iron & Steel
Port
Engineering
% by Business unit
in Year 2012
1,056
280 97
-258
-10,680 -11,855
HRC Iron &
Steel
Port Engineering
EBITDA
in 2012
Related
transaction
155 45
-191 -63
-15,903
-1,655
-14,194
HRC Iron &
Steel
Port Engineering
Net profit
in 2012
Related
transaction
Non-controlling
interest
15,742 11,469
15,794 17,599 47,975
60,604
1,405
-10,680
-981
-15,903
Unit: MB
Recent consolidated net profit
26
Source : WSA press release , Oct, 2011
-210 -86
-1,432
2,053
-3,259
-6,000
-4,000
-2,000
-
2,000
4,000
6,000
8,000
Q4/12
Revenues COGS SGA Reserve Interests Others Net Profit
17,599
-21,183
60,604
-2,056 -490
-3,876
-
1,794
-15,903
-20,000
-15,000
-10,000
-5,000
-
5,000
10,000
15,000
20,000
25,000
Year 2012
-71,879
Onerous
contract
Note : Included FX gain of 579 MB,
Reversal of environmental
provision of 808 MB and Income
tax benefit s of 613 MB
Note : Included FX gain of 346 MB,
Reversal of environmental
provision of 808 MB and Income
tax benefits of 601 MB
Unit: MB
Unit: MB
SSI UK Net profit in Year 2012
27
-1,181 -490 -1,763
1,493
-14,194
-20,000
-15,000
-10,000
-5,000
-
5,000
10,000
15,000
20,000
25,000
30,000
Revenues COGS SGA Reserve Interests Others Net Profit
34,964
-47,217
Unit: MB
Note : : Included Reversal of
environmental provision of 808 MB
and Income tax benefit s of 623 MB
Onerous
contract
28
Consolidated Financial Position
Interest Bearing Debt/Equity (x) Current Ratio (x)
1.27 1.15
0.95 0.84
0.72 0.75 0.71 0.71
0.0
0.5
1.0
1.5
2.0
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
22,838 22,185
25,838 25,432 25,309 25,178
16,983
24,423 25,302
21,615
Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
S/T Loan Inventories
Current Ratio remained relatively constant through out 2012 but decreased from year 2011 as external funds were used
to fund working capital.
Interest Bearing Debt/Equity rose through out 2012 as loans were drawn to fund SSI UK’s Restart Project and from
issuance of convertible debenture until the equity injection in November and December 2012.
Total Equity at year end 2012 increased QoQ due to the equity injection in Q4/12 but not enough to off set the impact of
net losses for the year. Hence, total equity declined by 10,000 MB YoY.
54,921
24,948
56,165
21,443
58,198
17,173
55,364
12,419
55,491
14,882
31,443
61,416 24,225
58,947
33,167
74,192
37,823
80,768
33,029
73,638
Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
Non Current Assets Current Assets Equities Total Liabilities
1.30 1.50 1.49 1.82
2.19
3.13
4.35
3.49
0.0
1.0
2.0
3.0
4.0
5.0
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
Consolidated Working Capital (MB) Total Assets and Liabilities (MB)
29
Agenda
Overview of SSI
Industry Outlook
Recent Update and Ongoing Project
Q4/2012 Performance Results
Q4/2012 and Year 2012 Financial Results
Q & A
Appendix:
Group Structure and Business (As of 27 Feb 13)
100.00% 3.70% 35.19% 51.00% 99.99%
50.00%
Free Float 45.72%
Foreign Limit 49.00%
Foreign available 11.89%
VANOMET HOLDING AG SAHAVIRIYA GROUP
36% 21%
JFE Steel Corporation
4%
Marubeni-Itochu Steel Inc.
4% 35%
Others
Note: * Turnover = Sales and Service Revenues
** Assumed exchange rate at THB 30/ USD.
Thai Coated
Steel Sheet Co., Ltd.
Turnover 95 MUSD
West Coast
Engineering Co., Ltd.
Turnover 23 MUSD
Thai Cold Rolled
Steel Sheet PLC.
Turnover 489 MUSD
Prachuap Port
Co., Ltd.
Turnover 12 MUSD
Sahaviriya Steel
Industries UK Ltd.
Turnover 1,125 MUSD
Redcar Bulk
Terminal Limited
Turnover 19 MGBP
Deep–sea Port Services
Turnover 2,020 MUSD
Group Business:
1. Hot-Rolled Coils Business in TH
2. Cold-Rolled Coils Business in TH
3. Coated Steel Sheet Business in TH
4. Engineering and Maintenance Service Business in TH
5. Deep-Sea Port Business in TH
6. Iron and Steel Making Business in UK
7. Deep-Sea Port Business in UK
Company: SAHAVIRIYA STEEL
INDUSTRIES Plc. (SSI)
Foundation: 13 March 1990
1st Day Trading: 8 September 1994
Website: www.ssi-steel.com
Group Employees: 4,104 (at the end of 2012)
CEO: Mr. Win Viriyaprapaikit
Ownership:
Company at a Glance (As of 27 Feb 13)
SV Group 36%
Vanomet
21%
Others 35%
JFE 4%
MISI 4%
No. of Listed Shares: 27,431,336,113 Shares
Registered Capital: THB 39,867,778,559
Paid-up Capital: THB 27,431,336,113
Par Value: THB 1.00
Foreign Limit: 49%
Foreign available: 11.89%
Dividend Policy: No less than 25% of the Company's net profit
each year on a non-consolidated basis
32
SSI’s Milestones & Snapshot
• Started its operation with Slab
capacity of 3.6 mmtpa
• First slab produced in April 2012
• SSI was established by Sahaviriya Group, and
incorporated as a public company
• Became the first and only conventional
standalone Hot Strip Mill in Thailand
1990
• Invested in TCRSS
• Established PPC to operate deep sea
port in Prachuap Khirikhan
• Started its operation with HRC
capacity of 1.8 mmtpa
• Became a listed-company on the SET
1994 1995
• Expanded its HRC
capacity to 2.4 mmtpa
1997
• Invested in TCS to extend
further downstream
• Set up WCE to provide engineering
& maintenance services among the
group of companies
1999
• Acquired TCP’s iron and steel making facilities
through its overseas subsidiary, SSI UK
• Began SSI UK restart project to refurbish its
facilities
2011
2012
2013 • Installed two shore
cranes (100 tons each)
2004 2012
• Reached 26 mmt of
accumulative HRC
production, the first steel
producer in Thailand
• Expanded its HRC capacity
to 4.0 mmtpa, with P/O
capacity of 1.0 mmtpa
1994
1994
2012
2013
• Pulverized Coal Injection (PCI)
project expected to be in use
“Coastal Mill” #1 SSI and
its downstream mills are
integrated with the deep
sea port
Perfect strategic location
for steel business
Bang Saphan 400 km
south of Bangkok
Upstream facility with the
deep sea port in Northeast
UK
Perfect strategic location
for steel business
Teesside 400 km north of
London
“Coastal Mill” #1
“Coastal Mill” #2
33
Unit: USD/Ton
2012 2011 2012 2011
Q4 Q3 Q4 Jan-Dec Jan-Dec
HRC Average Selling Price 694 700 783 717 769
HRC Spread 73 87 132 89 129
HRC Rolling Margin 10.6% 12.4% 16.9% 12.5% 16.8%
HRC EBITDA 18.5 15.4 23.6 16.0 29.4
HRC Shipments (k tons) 647 617* 303 2,184* 1,571
Production Volume (k tons) 602 627 376 2,096 1,564
Utilisation Rate (%) 60 63 38 52 39
Production Rate (Ton/hdw**) 404 418 202 328 264
Yield loss (%) 1.50 1.67 1.45 1.56 1.59
HRC Business Key Performance Snapshot
Note: * Including 29 k tons of tolling service volume in Q3/2012
** Ton/hdw = Ton per hour direct working time
34
Unit: MB 2012 2011 2012 2011
Q4 Q3 Q4 Jan-Dec Jan-Dec
Sale and Service Revenue 17,599 15,794 13,008 60,604 47,975
COGS (21,183) (18,730) (14,665) (71,879) (49,638)
SG&A (210) (718) 13 (2,056) (1,955)
Provision for loss under onerous
contracts (86) (147) (182) (490) (311)
Gain on business acquisition - - - - 5,271
EBITDA* (2,078) (3,146) (1,985) (10,680) 1,405
Interest Expenses (1,432) (952) (676) (3,876) (1,969)
Depreciation and Amortization (363) (666) (262) (1,948) (956)
Income Tax Expense 613 (17) 548 601 539
Realized Gain (Loss) from FX 857 (210) (481) 283 (502)
Unrealized Gain (Loss) from FX (269) (51) 169 63 (28)
Net Profit (Loss) (3,259) (4,782) (2,376) (15,903) (981)
EPS (Baht) (0.15) (0.26) (0.14) (0.84) (0.06)
Consolidated P&L Snapshot
35
SSI TH P&L Snapshot
Unit: MB 2012 2011 2012 2011
Q4 Q3 Q4 Jan-Dec Jan-Dec
Sale and Service Revenue 13,946 13,087 7,647 48,470 37,699
COGS (13,706) (13,260) (7,509) (47,838) (35,910)
SG&A (237) (223) (149) (777) 1,789
Provision for loss under onerous
contracts (15) (272) 129 0 (612)
Gain on business acquisition - - - - -
EBITDA* 367 287 211 1,056 1,389
Interest Expenses (615) (616) (412) (2,088) (1,321)
Depreciation and Amortization (174) (177) (124) (622) (512)
Realized Gain (Loss) from FX 337 53 (95) 359 (136)
Unrealized Gain (Loss) from FX (234) 171 54 68 (128)
Net Profit (Loss) (422) (506) (325) (1,655) (444)
EPS (Baht) (0.02) (0.03) (0.02) (0.09) (0.03)
36
Unit : MB 2012 2011
Sale Revenues 34,964 9,936
Cost of Good Sold (47,217) (13,643)
Admin Expenses (1,181) (1,251)
Provision for loss under
onerous contracts
(490) (311)
Gain from Business
Acquisition
- 5,271
EBITDA (11,855) (51)
Interest Expenses (1,763) (631)
Bank Fees (28) (104)
Gain (Loss) on FX (54) (284)
Gain (Loss) on Investment 55 7
Other Incomes 897 3
Income Tax 624 552
Net Profit (Loss) (14,194) (454)
SSI UK Financial Results
Profit and Loss Statement Statement of Financial Position
Unit : MB 2012 2011
Current Assets 10,759 8,553
Non-current Assets 33,623 31,218
Total Assets 44,382 39,771
Short-term Liabilities 13,128 7,565
Other Current Liabilities 5,010 5,963
Total Current Liabilities 18,139 13,528
Long-term Loans 14,646 10,057
Total Liabilities 35,202 27,732
Share Capital 23,801 12,255
Retained Earning (14,844) (650)
Total Equity 9,180 12,038
Total Liabilities & Equity 44,382 39,771