TATA STEEL LIMITED
August, 2012
Investor Presentation
Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
2
Tata Group - “Leadership with Trust”
Leading Conglomerate with an Established Global Presence
ENGINEERING
MATERIALS
ENERGY
CHEMICALS
CONSUMER PRODUCTS
SERVICES
COMMUNICATION
AND INFO SYSTEMS

One of the world’s largest steel companies globally
with 27.2 mtpa of steel production capacity

Principally engaged in providing information
technology (IT) and IT enabled services

Engaged in generation, transmission and distribution of
electrical energy and manufacture of electronic
equipment

Substantial presence in India and also owns Jaguar
and Land Rover premium passenger vehicles brands

Largest automobile manufacturer by revenue in India
GROUP STRUCTURE
ACTIVITY
Shareholding in Major
Operating Companies
Investment activity to
facilitate realization of
Operating Companies’
PROMOTER COMPANIES
Tata Sons
 Set up in 1868 by Mr. Jamsetji Tata, Tata Sons is a
privately held holding company for all key companies of
the Tata Group
 Tata Sons is majority owned by philanthropic trusts
endowed by members of the founder family
OWNERSHIP
66% Indian Trusts
13% Tata Group
Companies
18% Other Corporate
Shareholders
3% Individuals
strategic objectives
Promotes Group entry
into New Businesses
Tata Industries
 Setup in 1945 as a managing agency for businesses
promoted by Tata Sons
49% Tata Sons
51% Other Tata Group
Companies
 In the early 1980s, Tata Industries’ mandate was recast
1 As of Nov 3, 2010
to promote the Group's entry into new and high-tech
areas
3
Tata Steel Group: Diversified global steel producer
 The world’s top 12th steel company
and the world’s 2nd most geographically
diversified steel producer
Crude steel capacity of 27 MT
A balance global presence in over 50
markets and manufacturing operations
(incl. downstream) in 26 countries
Scandinavia
Western
Europe
NML, Canada
(iron ore)
CIS
CEE
China
Turkey
North America
Western
Africa
Japan
Orissa
India
An employee strength over 81,000
across 5 continents
SE Asia
Latin America
Ivory Coast
(iron ore)
Oman
(limestone)
Mozambique
South Africa
(coal)
Australia
(coal)
Group Turnover *:US$ 26.13 bn
Group EBITDA*: US$ 2.66 bn
Group Profit After Tax*: US$ 1.01 bn
Steel making operations
Distribution and Commercial Centres including
downstream assets
Mining assets & projects
* Figures for FY’12 where 1 USD = 50.87 INR
Uniquely positioned steel maker with presence in developed
and developing markets
4
Tata Steel Group: Global production hubs & diverse product mix
India



One production hub
Capacity: 6.8 mtpa
Distribution centres
UK



Two production hubs
Capacity: 10.7 mtpa
Distribution centres
Netherlands



One production hub
Capacity: 7.2 mtpa
Distribution centres




One production hub
Capacity: 0.7mtpa
2 mtpa finishing capacity in 7 countries
Distribution centres



Three production hubs
Capacity: 1.2 mt (finishing capacity 1.7mtpa)
Distribution centres

Distribution centres

Distribution centres
Singapore and
South-East Asia
Thailand
Construction
Flooring
Automotive
Packaging
Tyre Cord
Personal
Care
Roofing
Body and
Closures
Drink
Walls
Forming
Seats
EU (ex UK)
Structural
US
Steel Tubes
for Frames
Industrial
and Paint
Thrust on High–End Value Added Steel
5
10.00
0.00
2,000
10,000
Group Financial Highlights
Financial Year Ended 31st March’12
Deliveries
26125
24.22
24.50
23344
Q4
6683
Q3
6507
5631
Q2
6447
5346
Q1
6487
Q4
6.65
Q4
6.22
Q4
6649
Q3
5.90
Q3
5.84
Q3
5718
Q2
6.06
Q2
6.12
Q2
Q1
5.90
Q1
6.05
Q1
FY11
FY12
EBITDA#
FY11
683
Q2
848
Q1
894
FY11
US$ mn
1766
2660
940
Q3
FY12
PAT*
US$ mn
3365
Q4
US$ mn
Turnover
Mn T
Q4
672
Q3
398
586
Q2
Q1
1005
FY12
Q4
821
Q3
Q2
197
389
Q1
359
FY11
Q4
Q2
1060
85
42
Q1
1,051
Q3
(118)
FY12
Recommended Dividend for FY12 –
Rs.12 per share
6
Conversion Rate INR/USD – 50.87; #EBITDA excludes one-off gains from sale of investments; * PAT after Minority Interest and Share of Associates
Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
7
Performance of Tata Steel India
First Quarter Ended 30th June, 2012
Deliveries (MT)
Production (MT)
1.77
1.77
1.75
Q1 FY12
Q4 FY12
1.74
1.59
Q1 FY13
Q1 FY12
Turnover (US$ Mn)
1,704
1,413
Q1 FY12
1.59
Q4 FY12
Q1 FY13
EBITDA (US$ Mn)
1,601
567
535
502
Q4 FY12
Q1 FY13
Q1 FY12
Q4 FY12
Q1 FY13
8
Conversion Rate USDINR – 55.625
Performance of Tata Steel India
Longs, Flats and FAMD
Flat Products
Long Products
999
690
769
712
896
882
737
635
Q1 FY12
693
Q4 FY12
Long Products sales (in kt)
Q1 FY13
712
Q1 FY12
Q4 FY12
Flat Products sales (in kt)
Net Realizations (in US$/tonne)
726
697
Q1 FY13
Net realizations (in US$/tonne)
Ferro Alloys and Mineral Division (FAMD)
 Energy outage affected production
resulting in lower Flat and Long Products
deliveries in Q1FY’13
1400
1200
1,138
led to higher export realisation in FAMD
50
1000
800
34
400
40
27
30
23
600
 Improved demand and depreciating rupee
1,095
60
1,198
306
426
20
311
10
200
0
0
Q1 FY12
Q4 FY12
Q1 FY13
FAMD Deliveries ('000 t)
FeCr NR (US$ /t)
FAMD Operating Profit ( US$ Mn) - rhs
Conversion Rate USDINR – 55.625
9
Tata Steel India: Business Overview
PROFIT CENTRE
Products
UPSTREAM
UPSTREAM
FP DOWNSTREAM
LP DOWNSTREAM
LP & FP
DOWNSTREAM
FLATS
LONGS
TUBES
WIRES
AGRICO
Conveyance,
Structual (Hollow
sections) & Precision
Tubes,
Tyre Bead, Spring
Steel, LRPC Strand,
GI, ACSR, MS &
Binding wire
Traditional &
Mechanized Agri
Implements,
Hand Tools/Files
Hot Rolled , Cold
Rolled & Coated
Re-bars & Wire
Rods
Turnover (Billion $)
3.5
2.07
0.42
0.30
0.04
Sales (MTPA) (Mn No*)
3.74
2.9
0.37
0.28
12*
Dom. Sales (%)
96%
95%
100%
96%
90 %
29%
4 Brands
32%
3 Brands
65%
3 Brands
45%
1 Brand
90%
1 Brands
Branded play(%)
Brands
TSL Subsidiaries for downstream products : - TCIL: Tinplate; TBSL: Colour coated; TSPDL: Service Centers
10
Performance of South East Asia
First Quarter Ended 30th June, 2012
Production (MT)
Deliveries (MT)
0.78
0.74
0.69
0.73
0.72
Q4 FY12
Q1 FY13
0.63
Q1 FY12
Q4 FY12
Q1 FY13
Q1 FY12
Turnover (US$ Mn)
EBITDA (US$ Mn)
19
599
606
16
Q1 FY13
Q1 FY12
17
567
Q1 FY12
Q4 FY12
Q4 FY12
Q1 FY13
11
Conversion Rate USDINR – 55.625
South-East Asia Update
NatSteel Holdings

Upgradation of melt shop shaft furnace and bar mill line to result in both productivity enhancement
and power cost savings

Strengthening the downstream reinforcement business by increasing its volumes in value added
products from the current 65% to 80% of overall sales.

Initiatives taken to cut costs, improve manpower productivity and identify alternate sources of input
feed

Increase in production capacity in Vietnam from 120 ktpa to 200 ktpa
Tata Steel Thailand

Project initiated to improve the reliability in domestic scrap collection and optimization of blending
in various grades to help in reducing the total billet cost

New product development - introduced special bar quality products and high end wire rods in the
Thailand market

Introduced “TISCON” brand internationally

Production planning model implemented to enhance contribution by adjusting the product mix and
optimizing productivity
12
Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
13
Performance of Tata Steel Europe
First Quarter Ended 30th June, 2012
Production (MT)
3.81
3.30
Q1 FY12
Q4 FY12
Deliveries (MT)
3.55
3.55
Q1 FY12
Q4 FY12
3.53
Q1 FY13
Turnover (US$ Mn)
3,692
3,582
3.21
Q1 FY13
EBITDA (US$ Mn)
3,669
343
111
26
Q1 FY12
Q4 FY12
Q1 FY13
Q1 FY12
Q4 FY12
Q1 FY13
14
Conversion Rate USDINR – 55.625
Tata Steel Europe
Challenges Faced in FY12
Market
 Continuing Eurozone
crisis deflated European
steel demand after recovery
in Jan - June
 Limited restocking on
concerns about spot pricing
Operational performance
Cost / Price Squeeze
 Operational Performance
below plan
 Production issues primarily
at Strip Products UK blast
furnaces
 Raw material cost / price
squeeze got to extreme
heights in Q3 FY12
15
Tata Steel Europe – Comprehensive Strategy
Investments to improve product mix and service offering:
• BF 4 rebuild at Port Talbot
Rail: 108m Rail Hayange
Aerospace: vacuum arc remelting furnaces and specialist
testing equipment
Automotive: new tubes manufacturing and processing facility
& new zincpot for Magizinc Automotive
Achievements:
Energy & Power: Major contract (> £100
million) to provide pipe for gas pipeline
48000 tonnes of steel pipe for an oil
pipeline in the Gulf of Mexico.
25000 tonnes supply of profiled plate
for Siemens Wind Power
Lifting & Excavating: JCB award for
Supplier Performance Award 2012
• Opening of Thermal Technology Centre
• Reinvigorisation of the process for New
Products Development
• Automotive: new press-hardened zinc-coated
boron steel sheet, called ZnX®
• Aerospace: Laboratory approval(GE-S-400)
from leading aircraft engine manufacturer
General Electric (GE) Aviation
• Supply Chain Transformation
• Upgrade hot strip mill IJmuiden
• Dalzell heavy plate press
• Mid campaign repair BF 5 furnace during
March / April ensuring readiness for short
term one furnace operation in 2012
To be
the long term
preferred partner in
our chosen
markets by
unlocking the
potential of
steel
• Optimisation programme
IJmuiden:Quality – Reliability
– Cost
• Upgraded PL22 restart
Restructuring Long Products
Optimise footprint in Europe:
• Construction Products closure in Q2
• Llanwern Hot Mill mothball in Q3
• Tubes reorganisation in Q4
• Kalzip restructure in Q4
• Tata Steel International restructuring in Q4
Investments: Dust filter IJmuiden
Tata Kids of Steel
Tata Steel Academy
Tata Steel Europe - Blast Furnace Rebuild at Port Talbot
 Campaign life of at least 20 years, taking best available
technology from within the group and from leading
international technology suppliers
 An additional 500kt productivity to 2.5mtpa, with
increased inner volume and hearth diameter, and
productivity index among the best in Europe
 New centralised electrical control system, to replace all
obsolete equipment
New gas cleaning plant, incorporating a cyclone to
improve primary dust collection and containment
 New hot-blast stoves to further improve productivity (and
reduce emissions)
Variable speed drives to reduce energy usage
The project addresses many of the key areas identified
by the Environment Agency as sources of particulates
around the site
17
Tata Steel Europe - Margin Improvement
Focus on Change in Product Mix Towards Higher Margin
Products
Sales volume (mt)
+36%
17.0
12.5
Differentiated
Commodity
Colorcoat HPS200 Ultra®
Prepainted steel for building
Cladding
Global brand leader.
Bi-steel defence and security system
welded plate composite for blast
protections
Slimdek construction flooring
system
steel/concrete composite
MagiZinc
zinc/magnesium coating for enhanced
corrosion protection in buildings and
automotives
Speciality Steels for Aerospace
undercarriages, engines
Celsius® Tubes
unique product range for flagship buildings
e.g. stadia
2009/1
2015/1
0
6
 TSE can leverage on its leading market position in
downstream products:
 The leading supplier for tube products in Europe
 Packaging: #1 in UK, #2 in Europe
 Colors: #1 in UK and Europe
 Plated Steel for Battery: #1 Globally
Automotive Products
TSE recently launched a new automotive
product (CP800) in Oct 2011. TSE has
been awarded for supply of CP800 for the
new Mercedes S class
Tata Steel Europe – An Update
• Selling price recovery not sustained in the latter part of Q1 FY13, reflecting
Cost-Price
Squeeze
confidence concerns caused by European sovereign debt crisis
• Positive cost/price impact leading to increased EBITDA between Q4 FY12
and Q1FY13
• Operational stability supported by £185 mn investment in BF4 rebuild at Port
Operational
Stability
Talbot
• Rebuild will improve the balance of iron and steel making capacities
• Project is making good progress with completion expected in Q3 FY13
• Upgrade of coilers at hot strip mill in IJmuiden allowing development of
heavier gauge strip products
Capex and
Restructuring
• €12m investment in Rail France to produce longer premium rails
• Investment in IJmuiden to focus on MagiZinc® Auto coated steel for the
automotive industry
• Agreement to sell 50% stake in joint venture HKS Scrap Metals Co – a noncore asset
19
Pensions Management – European Operations
Figures in £ mn
Total Scheme Retirement Benefit Assets
Total Scheme Retirement Benefit Liabilities
Jun-11
Mar-12
Jun-12
16,401
17,166
16,891
(16,051)
(16,955)
(16,853)
350
211
38
Net Pension Surplus (BSPS &SPH)
£ mn
Pension Asset Composition – BSPS
100%
2%
2%
2%
30%
32%
32%
33%
32%
33%
7%
7%
7%
28%
26%
26%
Triennial Valuations:
Negotiations Ongoing
80%
60%
40%
20%
0%
Jun-11
Equity Securities
Mar-12
Real estate/property
Jun-12
Corporate bonds
Gilts
Cash
20
Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
21
Securing competitive advantage through our long term strategy
Indian growth story
Unique steel
operation:
Presence in
both
developed
and
developing
markets
Raw material investment
Value addition through downstream push
Control over logistics
Enhance competitiveness through
continuous improvement
22
3 MTPA Expansion at Jamshedpur
Pellet Plant
 The project is being set up for commercial
production – Ramp up in progress
 Trial production started in Noamundi mines
and integrated trials completed in Joda
 Production started in Oxygen plant
 Coke Oven Battery# 10 expected to be
ready by end FY13
TSCR
TSCR
 Additional HRC production in FY13– 1 mtpa
and full ramp up in FY 14
 2 mtpa of HRC will be used for our
downstream businesses on achievement of
full capacity
23
Greenfield Expansion at Odisha

Steel Production Process
 BF – BOF – HSM – CRM

To be implemented in two modules
 Module I - 3 Mtpa capacity by 2014
 Module II - 3 Mtpa capacity by 2016 (i.e. 18-24
months from commissioning of Module 1)

Estimated Project Cost: Around INR 345 bn

Resettlement & Rehabilitation
 All land required for setting up the plant has been
acquired

Clearances & Approvals – Already Obtained
 State Pollution Control Board, Odisha
 Ministry of Environment & Forests
 Water Drawal and Right of Way
 Construction Power from State Grid
 Railway Corridor and Siding

Orders Placed for equipments in excess of INR140 bn

Expenditure by Tata Steel Limited up to Mar 2012 was
INR 37 bn

Overall project Debt: Equity targeted at 65:35

Financial Closure targeted by H1 FY 13
24
Raw Material Security
Australia
Mozambique
Canada
South Africa
Ivory Coast
JV
CDJV
(Carborough
Downs Joint
Venture)
Rio Tinto Benga
(Mauritius) Limited
(RTBML)
DSO Project
IDC & BEE
TSCI
JV Partner
JFE (5%),
Posco(5%) and
Vale (85%)
Rio Mauritius Ltd.
New Millennium
IDC (10%), BEE
(26%)
Sodemi (15%);
Government 10%
Tata Steel stake
5%
35%
27.1%
64%
75%
Off-take contract
Yes
Yes
Yes
Yes
Yes
Product
Coal
Coal
Iron ore
Iron-ore
Iron ore
Quantity as per
Off-take
20%
40%
100%
74%
100%
Rated Capacity/
Production start
1.8mtpa/
Existing
5.3mtpa going up to
10.6 mtpa/ Q1
FY2013
6mtpa/ Q4 FY
2013
2 mtpa/ 2012
Feasibility to be
completed by
FY2013
Location
25
Strategic Value Add : Downstream businesses in India
Tata Steel
Processing &
Distribution
Ltd (100%)
 Value added services like slitting, cut to length, pickling, roll forming, rebar processing etc.
 5 processing units and 15 sales locations across India with a processing capacity of 2.5 mtpa
 Roll Forming and Stretch Bending to make high precision automotive components for auto majors
 High-end plate fabrication for major equipment manufacturers including Caterpillar and JBP Group
Tata Bluescope
 A 50:50 JV with Bluescope Steel – manufacturing building products & solutions from metal &
color coated steel
 3 facilities with a total capacity of 136 ktpa to cater to the Indian construction industry
 Presently implementing a greenfield project for metal coating (250 ktpa) and color coating
(150 ktpa) facilities at Jamshedpur, to be operational in 2011
Tinplate Company
 Largest Indian producer of tin coated and tin free steel sheets with 35-40% market share
 Makes various grades of electrolytic tinplates, tin-free steel sheets and Full Hard Cold Rolled
Sheets used for metal packaging
 Expansion of cold rolling capacity is expected to be completed in 2011 (total capacity of the plant
to reach 379 ktpa)
Wires Division
 Steelworks facility in Tarapur and wire drawing plants at Indore and Bengaluru
 Products include springs, pre-stressed concrete and conductors
 Customers include the construction and automotive segments
26
Control over logistics
Tata NYK Shipping
 A 50:50 JV between Tata Steel and Nippon Yusen Kabushiki Kaisha (“NYK
Line”), Japan, currently operating 12 chartered and 2 owned vessels
 Focused on shipping dry bulk and break bulk cargo
 Dhamra Port Company Ltd (DPCL) a 50:50 JV with L&T
Dhamra Port
 One of the deepest ports in India with a draft of 18 metres, capable of
accommodating capesize vessels up to 1,80,000 DWT
 Phase-I of the project is complete and the commercial operations started in
May–11
 The capacity is estimated to be 27 mtpa in Phase-I with two fully mechanised
berths
TM Intl Logistics(51%)
 Partnership between Tata Steel, NYK and Martrade
 Engaged in the business of port and terminal handling, maritime shipping,
ship agency, custom clearance and freight forwarding
27
Continuous Improvements
Figures in US$ Mn
Savings on Improvement Initiatives
Initiative Wise Break Up (FY2012)
Incremental Break Up (FY2013)
5
400
73%
10
362
60
123
48
300
200
100
209
46
3
186
314
19
163
0
FY11
Cost savings
21
152
FY12
Value addition
DMAIC/SIP
Marketing Initiative
Synergy
29
TOC
KVHS
DMAIC/ SIP
TOC
Marketing Initiative
KVHS
Synergy
US$ 362 mn
US$ 245 mn
Improvement Initiatives – Examples:
 Flat Products: Increase in slab thickness & casting speed at LD2 and reduction in scrap, lime and refractory
consumption
 Long Products: Increase in billet production at New Bar Mill and retail initiatives for mix enrichment
 Coke, Sinter & Iron: Increase in the height of the coal cake by 50mm at Haldia Met Coke
 Raw Materials: Use of low quality domestic coal at Jharia to substitute imported hard coking coal
 Shared Services: Reduction in maintenance outages at HSM generated significant savings
28
Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
29
Group Financial Performance – FY’12
Figures in US$ Mn unless specified
FY12
Tata Steel
India
Deliveries (Mn T)
Tata Steel
Europe
FY11
SE
Asia
Tata Steel
Group (*)
Tata Steel
Group (*)
6.63
14.02
2.95
24.22
24.50
Turnover
6,671
16,150
2,498
26,125
23,344
EBITDA
2,272
349
42
2,660
3,365
EBITDA Margin (%)
34%
2%
2%
10%
14%
EBITDA/tonne (US$)
343
25
14
110
137
FY12
FY11
Profit Before Tax
1,688
2,379
Profit After Tax & Minority Interest
1,060
1,766
(*) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group ; Conversion Rate USDINR – 50.87
30
Group Financial Performance – Q1 FY13
Figures in US $ Mn unless specified
Q1 FY13
Tata Steel
India
Deliveries (MnT)
Tata Steel
Europe
Q1 FY12
SE
Asia
Tata Steel
Group (*)
Tata Steel
Group (*)
1.59
3.21
0.72
5.68
6.05
1,601
3,669
606
6,080
5,933
502
111
17
644
912
EBITDA Margin (%)
31%
3%
3%
11%
15%
EBITDA/tonne (US$)
316
35
24
113
151
Turnover
EBITDA
Q1 FY13
Q1 FY12
Profit Before Tax
255
1,154
Profit After Tax & Minority Interest
107
961#
(*) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group
# Profit After Tax in Q1 FY’12 included profit of US$604 mn on sale of shares in Riverdale mining & TRL
31
Conversion Rate USDINR – 55.625
Net Debt Movement and Liquidity Position
Net debt movement (US$ mn)
1508
482
US$ mn
11734
10768
(1024)
9711
(2023)
Gross Debts Loans takenLoans repaid
Mar-12
Reval.
Impact
Gross Debts Cash & Cash
June-12
Eq June 12
9303
(408)
Net Debts
June-12
Forward
Covers
Underlying
Net Debt
June 12
Liquidity position (US$ mn)
Capex incurred in Q1 FY13:
1481
Total Liquidity
2023
US$641mn
US$3,504 mn
Cash and Cash Equivalents
Conversion Rate USDINR – 55.625
Undrawn Lines
32
Tata Steel Group - Financial Flexibility
Monetisation of assets, highly valued portfolio of investments, strong
promoter support and healthy cash balances plus undrawn bank lines
Demonstrated monetisation of assets
Divestments since
2010
Highly valued portfolio of group investments
Time
Amount in US$ mn
SSB
Jul 2010
72
Teesside Sale
Mar 2011
700
Tata Motors
836.4
5.63
34.81
Tata Refractories
Apr 2011
129
354.6
8.74
53.05
Group Holdings
Partly done
345
Titan
Industries
Jun 2011
1,100
Tata Power
Co.
35.0
0.73
31.75
TCS Limited
0.6
Riversdale
Total
2,346
Others: A commercial settlement to all disputes relating
to the TCP off-take agreements was reached in June
2011, and TSE received an aggregate sum of US$
130mn
Company
MV of holding Co. Holding Promoter
(US$ mn)
(%)
Holding (%)
Total
73.98
1226.5
•Market value as on March 31, 2012
Strong Promoter Support (INR bn)
17
11
10
11
5
5
7
FY08
FY09
FY10
FY11
FY12
33
Right Issue
Inter-se Transfer
CCPS
Preferential Allotment of Shares and Warrants
Conversion of Warrants
Key Corporate Developments
 On 31st May’11, Tata Steel completed the transfer of a 50.84% equity stake in Tata Refractories
Limited (of its 77.46% stake) to Krosaki Harima Corporation (KHC) of Japan and received sale
proceeds of Rs.576 crores (US$129 million)
 Tata Steel accepted an offer from Rio Tinto to sell the Company’s entire 26.27% stake in Riversdale
Mining Limited (RML) for A$16.50 per share for a consideration of Rs.4,942 crores (US$1,106
million)
 Tata Steel has formed a joint venture with Nippon Steel Corporation (NSC) for a 600kT per annum
continuous annealing & processing line (CAPL) project to be commissioned at Jamshedpur
 Tata BlueScope Steel Limited, a joint venture between Tata Steel and BlueScope Steel, started its
coated steel manufacturing facility at Bara, Jamshedpur with an annual metallic coating capacity of
250,000 tonne (including pre-painting capacity of 150,000 tonnes)
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Financing Developments
In FY’12
 US$200 million of a US$500 million JPY ECB Loan facility was prepaid in March 2012
 On 20th January’12, Tata Sons exercised the option to convert 12 million warrants into ordinary
shares of the Company at a price of Rs. 594/- per share, which is at a premium of Rs. 584/- per
share
 Prepaid Rs.1500 crores of syndicated rupee term loan facilities raised for the 2.9 mtpa expansion
 Unsecured rupee term loan facility of Rs.2000 crores having 5-year tenor tied in March’12, and
Rs.500 crores was drawn down
 Prepayment of Rs.1,000 crores of rupee term loan in September 2011
 In May 2011, Company successfully launched the second tranche of its first ever offering of
Corporate Hybrid Perpetual Securities through an issue of Rs.775 crores
In Q1 FY’13
 In April 2012, low coupon Non-Convertible Debentures for a tenor of 10 years worth Rs.1,500 crores
were issued on a private placement basis
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Agenda
Overview of Tata Steel Group
Performance of Indian & South East Asian Operations
Performance of European Operations
Group Strategy
Group Financial Performance
Business Outlook
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Business Outlook
 Global steel capacity utilisation remains around 80%, implying significant
overcapacity and downward pressure on steel prices
 Raw material prices are falling sharply – should help non-integrated steel
manufacturers
 Steelmakers are attempting price increases, however falling raw material prices may
drag steel prices further
 Chinese steel exports are on the rise as domestic demand falters
 India’s domestic steel demand outlook remains soft however supply issues (mostly
with secondary manufacturers) have balanced the situation. Consumption has
increased at a healthy rate in the first quarter of the year
 Sovereign debt issues and austerity measures in the Eurozone are hurting consumer
sentiment and steel demand
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Thank You
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