Company performance Fiscal Year 2021

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