Investor Presentation

December 2010
Disclaimer

Forward Looking Statements

This presentation may contain “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements include, but
are not limited to, statements about Tata Steel’s plans, objectives, expectations and intentions and other statements that are not
historical facts. Forward-looking statements are based on estimates and assumptions made by Tata Steel that, although believed to be
reasonable, are inherently uncertain. Factors that could cause actual results to differ materially from those contemplated by such
forward-looking statements include, without limitation, the downturn in the global economy and the risk of a protracted recession; the
risk of a potential fall in steel prices or of price volatility; the integration of Corus; the implementation of new projects, including future
acquisitions and financings; Tata Steel’s ability to recover the mineral reserves to which it has access or develop new mineral reserves;
changes in expenses, including the cost of transporting Tata Steel’s products and the cost of energy, such as coal and electricity; Tata
Steel’s substantial indebtedness and ability to meet its debt service obligations; changes in government regulation; terrorist attacks,
civil disturbances, regional conflicts, accidents and natural disasters; general economic and business conditions; increasing
competition; changes in laws and regulations relating to the industries in which Tata Steel operates; Tata Steel’s ability to meet its
capital expenditure requirements or increases in capital expenditure requirements; fluctuations in operating costs; Tata Steel’s ability to
attract
tt t and d retain
t i qualified
lifi d personnel;
l changes
h i technology;
in t h l changes
h i political
in liti l and
d social
i l conditions
diti i India
in I di or in
i other
th countries
t i in
i
which Tata Steel has operations, the monetary policies of India or of such other countries, inflation, deflation, unanticipated turbulence
in interest rates, equity prices, exchange rates or other rates or prices; the performance of the financial markets in India and other
countries where Tata Steel has operations, as well as the performance of financial markets globally; and any adverse outcome in legal
proceedings in which Tata Steel is or may become involved including with respect to product liability claims. Tata Steel disclaims any
i t ti or obligation
intention bli ti to t revise
i any forward-looking
f d l ki statements,
t t t whether
h th as a result lt off new information,
i f ti a future
f t event,
t or otherwise.
th i
Nothing in this presentation shall be regarded as a profit forecast. Tata Steel and its directors and officers accept no liability to third
parties in respect of this presentation.

Industry and Market Data

Steel market and competitive position data in this presentation has generally been obtained from industry publications and surveys or
studies conducted by third-party sources. There are limitations with respect to the availability, accuracy, completeness and
comparability of such data. Tata Steel has not independently verified such data and can provide no assurance of its accuracy or
completeness. Certain statements in this presentation regarding the steel market are based on the internal analyses of Tata Steel,
which involve certain assumptions and estimates. These internal analyses have not been verified by any independent sources and
there can be no assurance that the assumptions or estimates are accurate.
accurate

2
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

3
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

4
Overview of the Tata Group
¾ The Tata Group is one of India's largest business conglomerates

¾ The Group was founded by Mr. Jamsetji Tata in the second half of the 19th century, and is currently headed by Mr.
Ratan Tata
¾ The Tata Group comprises of 98 operating companies employing over 350,000
350 000 people in 7 business sectors viz.
viz
Communications & Info Systems, Engineering, Materials, Services, Energy, Consumer Products and Chemicals
¾ The Group includes 28 publicly listed enterprises having a cumulative shareholder base of ~3.5 mn and total market
cap1 of ~US$101bn
¾ The Group has operations in more than 80 countries across 6 continents and exports products & services to over 85
countries
GROUP STRUCTURE

ACTIVITY PROMOTER COMPANIES OWNERSHIP

Shareholding in Major Tata Sons 66% Indian Trusts

Operating Companies
Investment activity to
facilitate realization of
Operating Companies’
strategic objectives
13% Tata Group
„ Set up in 1868 by Mr. Jamsetji Tata, Tata Sons is a privately
Companies
held holding company for all key companies of the Tata
Group 18% Other Corporate
„ Tata Sons is mainly owned by philanthropic trusts endowed Shareholders
by members of the founder family
„ Tata Sons is the owner of the ‘Tata’ name and the ‘Tata’ 3% Individuals
trademark

Promotes Group entry into Tata Industries 49% Tata Sons

New Businesses
„ Setup in 1945 as a managing agency for businesses 51% Other Tata Group
promoted by Tata Sons Companies
„ In the early 1980s
1980s, Tata Industries
Industries’ mandate was recast to
promote the Group's entry into new and high-tech areas
1 As of Nov 3, 2010
5
Tata Group
Committed to socially and environmentally responsible business through excellence and innovation

CONSUMER COMMUNICATION
ENGINEERING MATERIALS ENERGY CHEMICALS SERVICES
PRODUCTS AND INFO SYSTEMS

¾ Among the top 10 crude steel producers ¾ Asia’s leading software services provider
globally with ~27 MTPA of steelmaking and the first Indian software firm to exceed
capacity sales of US$ 5 bn

¾ Largest private sector power generation ¾ Largest hotel chain in India

company in India

¾ Global auto company with leading market ¾ Largest integrated tea company in India
position in India and abroad
¾ Owner of Jaguar and Land Rover marques

¾ One of the world’s largest producers of ¾ Leading International Long Distance

organic chemicals telecommunications service provider in
India

TATA Group revenue has grown from $5.8bn in FY’92 to $70.8bn in FY’09 – CAGR ~16%

6
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

7
Tata Steel Group: Diversified Global Steel Player
ƒ The ld’ 10th largest
Th world’s l t steel
t l
company and the world’s 2nd most
geographically diversified steel
producer
Scandinavia
CIS
ƒCrude steel capacity of 27 Mn Western
Europe
t
tonnes NML Canada
NML, CEE
(iron ore) China
Turkey
North America Japan
ƒA balance global presence in over Western Orissa
Africa
India
50 markets and manufacturing SE Asia
Oman
operations (incl. downstream) in 26 Ivory Coast (limestone)
Latin America (iron ore) Australia
countries Mozambique
South Africa
(coal)
(coal)

ƒAn employee strength over

81,000 across 5 continents Steel making operations
Distribution and Commercial Centres including
ƒGroup
G T
Turnover **:US$
US$ 23
23.05
05 B
Bn downstream assets

Mining assets & projects

ƒCapital Employed*: US$ 18 Bn

ƒGroup
G EBITDA* : US$ 2.08
2 08 Bn
B Uniquely positioned steel maker with presence in developed
* Figures for FY’10 and developing markets
8
Global Facilities and Diverse Product Mix

† Three production facilities Construction Automotive Packaging

† Capacity: 11.5 mt
UK † Distribution centres
† One production facility
† Capacity: 6.9 mt
Netherlands † Distribution centres Tyre Cord
Flooring
† One production facility Personal
† Capacity: 66.88 mt Care
India † Distribution centres
† One production facility
† Capacity: 0.675mt
Roofing Body and
Singapore and † Finishing capacity in seven countries (total 2mtpa) Closures
South-East Asia † Distribution centres

† Three production facilities Drink

† Capacity: 1.2 mt (finishing capacity 1.7mtpa)
Thailand † Distribution centres Forming
Walls Seats
† Distribution centres
EU (ex UK)

• Distribution centres Industrial

Stee Tubes
Steel ubes and Paint
US Structural for Frames

Top 10 Crude Steel Producer With ~27 MT of Annual Capacity

Across 7 Major Steel Facilities Globally
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

10
 Global market environment

Worldsteel apparent demand forecast – 2010 & 2011 (%

Quarterly apparent steel use & capacity utilisation
change) (October 2010)
2007-08 2008-09 2009-10 2010-11
400 100
40%

90 2010 2011
350
Global capacity utilisation 35%
35%
80
300 30%
70
26%
250 25% 24%
60

200 50 20% 19%

World excl. China
40 14%
150 15% 13%
11%
30
10% 9%
100 8% 8%
7%
20 6%
5%
5% 4%
50 China
10

0%
0 0
EU27 CIS North Latin China India Global
Source: worldsteel, Tata Steel America America
Source: worldsteel

Seasonal weakness, destocking

g and China slowdown seen in the Sep
pqqtr. Continued real
demand growth in emerging markets should support demand going into 2011
11
 Raw materials and steel prices

Iron Ore Fines, US$/tonne HRC spot price, US$/tonne

250
Spot CIF China
Contract FOB 1,400
200
India (Mumbai)
Chinese domestic (incl VAT)
150
1,200 USA domestic (FOB Gulf)

100 Germanyy domestic

50 1,000

0
Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10
800
Hard coking coal, US$/tonne
450
Spot FOB Australia
400
Contract FOB Australia
350 600
300
250
200 400
150
100
50 200
0 May-08 May-09 May-10
Apr-07
Apr 07 Oct
Oct-07
07 Apr
Apr-08
08 Oct
Oct-08
08 Apr
Apr-09
09 Oct
Oct-09
09 Apr
Apr-10
10 Oct
Oct-10
10 Source: CRU
Source: CRU

Raw material contract prices lower in the December quarter 12

 Indian & South East Asian market
I di industrial
Indian i d t i l production
d ti & car production
d ti (Y/Y % change)
h )

140 Indian & South East Asian apparent steel consumption (mt)
120
Industrial production (Y/Y % chg)
100 80
Car production (Y/Y % chg) Forecast
80
60 68
70
40
20 60
0 60 55
-20
51 51 51
-40
50 46 46 47
Jan-07 Jan-08 Jan-09 Jan-10
44
42
Source: Thomson Datastream 40
37 37
South East Asian construction activity ($2005m, Y/Y % chg) 40 35
200 12
180
Forecast
10.3 10
30
160 9.5
140 8.7
8 Indian apparent consumption
120 20 South East Asian apparent consumption
100 6.2 6
5.3 4.7 5.4
5.3
80
44
4.4 10
3.8 4
60
40
2
20 1.1 0
0 0 2004 2005 2006 2007 2008 2009 2010 2011
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: worldsteel
Source: Global Insight

The outlook for the region remains strong 13

 European steel market

Steel using sector output (index 2005 = 100) European Steel Service Centre Stocks (mt, months of
supply Months supply
130 2.6 Mt 3.4

Stock levels
120 3.2
32
2.4
3.0
110
2.2 Months
supply 2.8
100
2.0 2.6
90
2.4
Germany - machinery & equipment 1.8
80 2.2
UK - machinery & equipment
1.6
70 EU - Motor Vehicles 2.0

60 1.4 1.8
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
Imports into EU27 (mt, share of demand)
EU27 construction activity (index 2005 = 100) Imports (mt) Share (%)
115 4 25

110
Import 20
3
105 share

15
100
2
95
10

90
1 Imports (mt)
5
85

80 0 0
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

Mixed developments for steel using sectors. Stocks and imports remain 14
low
 Sector Outlook Summary

• The global steel market is recovering

• However most developed markets face a long recovery

• Emerging markets, particularly India and China will continue robust growth

• Some overcapacity will persist for the next 3-5 years

• China is a major influence on the global market, this will grow further in the
medium term, inter-alia, for raw materials

• Raw materials costs will remain volatile going forward

• While regional concentration has improved, at the global level the steel industry
remains fragmented

• Climate change is not a level playing field and this will potentially adversely
impact the EU
15
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

16
Long Term Strategy

Strong base in India

Enhance Competitiveness through Continuous

Unique I
Improvement
steel
operation:
Presence
in
Ownership of Strategic Raw Materials
developed
and
developing
markets
More from Steel

Control Over Supply Chain

 The India Growth Story – GDP Growth
10 9.7
GDP growth estimates (%)
8.4
8
7.1
6.0
6.4 6.4 India’s economy is on a growth trajectory and
5.7
6
is expected to outperform even emerging
4.8
4.2 short medium term…….
markets in the short-medium term
4

2.8 2.5 2.7

(%)

2.2
2

0.2
0

-0.6
-2
India outperformed
peers and expected to
-3.2 continue the trend
-4
CY08 CY09 CY10E CY11E
Advanced Economies Emerging & Developing Economies World India

60
omies (%) CY1990 CY2000 CY2007

…..backed by a high savings rate, 50 Lends Sustainability India’s Growth to be Funded

o for major econo

which
hi h reduces
d reliance
li on credit
dit ffed
d to Growth Projections by Savings, Unlike Credit as
in the Case of Developed
growth 40

35
Economies

30

24
With the given growth estimates,
23
Saving/GDP ratio

I di will
India ill emerge as the
th 7th largest
l t 20
country by absolute GDP (currently
10
12th) and 3rd largest by PPP GDP
(currently 4th) 0

Taiwan of China
a
Thailand
d

Hong Kong SAR

R

United Kingdom
m
Philippiness

Italyy
Indonesia
a

Germanyy

United Statess
China
a

Malaysia
a

India
a
Singapore
e

Japan
n

Canada
a

France
e
Korea
a

18
 The India Growth Story – Capital Markets
St
Strong upturn
t since
i Apr-09
A 09 after
ft a subdued
bd d 2008 resulting
lti in
i FII Flows
Fl have
h turned
t d nett positive
iti this
thi fiscal
fi l after
ft massive
i
Sensex becoming a global outperformer exodus in FY09
FIIs have 

6,373
Sensex 106.7%
pumped in 

5,579
7,000
US$ 45.1 bn 

4,253

4,142

4,135
Hong Kong 78.6% 6,000

3,777
5,000 from April 1, 

00

04
27

20

2,0999
3
4 000
4,000

2,40

2,40
2009 till
2009 till 

1,791

2,22

2,22
Nasdaq 63.3%

1,473

1,242
1,177
3,000 November 1, 

(US$ mn)

827
695
2,000

464
271
245
Kospi 57.0% 1,000 2010

63
0

(230)

(230)
FTSE 100 (1,000)

(539)
45.6%

(676)
(750)

(869)
(1,096)
(2,000)

(1,731)

((1,989)
(3,000)

2,471)
Dow 44.2%

930)
(4,000)

Oct 08 (2,9
Jun 08 (2
(5 000)
(5,000)
Shanghai Comp 25.9% (6,000)

May 08

May 09

May 10
Nov 08

Mar 09

Nov 09

Mar 10

Nov 10
Apr 08

Jul 08
Aug 08

Jan 09

Apr 09

Jun 09
Jul 09
Aug 09

Jan 10

Apr 10

Jun 10
Jul 10
Aug 10
Sep 08

Dec 08

Feb 09

Sep 09
Oct 09

Dec 09

Feb 10

Sep 10
Oct 10
Japan 9.7%

0.0% 30.0% 60.0% 90.0% 120.0%

Source: Bloomberg Source: Bloomberg

Significant fall in Sensex Volatility (90 Day) Significant rise in daily volumes – Monthly Average
60.00 2,000 Cash F&O
55.00
50.00
1,500
45.00

Rs. bn.
40.00

865
(%)

1,000
35.00
30.00
25.00 500

185
20.00
15 00
15.00
13.12 -

Jun-08
Jul-08

Nov-08

Jun-09
Jul-09

Nov-09

Jun-10
Jul-10

Nov-10
May-08

May-09
Aug-08

Jan-09

Aug-09

Jan-10

May-10

Aug-10
10.00
Apr-08

Sep-08
Oct-08

Dec-08

Feb-09
Mar-09
Apr-09

Sep-09
Oct-09

Dec-09

Feb-10
Mar-10
Apr-10

Sep-10
Oct-10
Jun-08
Jul-08

Jun-09
Nov-08

Jul-09

Jun-10
Nov-09

Jul-10

Nov-10
May-08

Aug-08

Jan-09

May-09

Aug-09

Jan-10

May-10

Aug-10
Apr-08

Apr-09

Apr-10
Sep-08
Oct-08

Dec-08

Feb-09
Mar-09

Sep-09
Oct-09

Dec-09

Feb-10
Mar-10

Sep-10
Oct-10

Source: Bloomberg Source: Bloomberg

• ~25% earnings growth expectation currently prized in into market valuations

• Rising commodity prices partially offset by strengthening currency
• Sentiment risk from double-dip recession in the West receding 19
Developing on the strong base in India

Capacity expansion is a key strategy for Tata Steel in India, where it derives much of its competitive
advantage as a low-cost producer from the quality and yield of its raw material sources.
Work is currently under way to increase steelmaking capacity at Jamshedpur to 9.7mtpa
9 7mtpa by 2012.
2012
Looking further into the future, the company plans to continue to increase its capacity significantly through
both brownfield and greenfield developments.

Expansion Projects
20 16.0

13.0
pa)

15
apacity (mtp

10.0
Orissa Ph-2
10 6.8 Orissa Ph-1
5.0
Flat Products
Jamshedpur 2.9
5
Ca

1.8
1 8 mtpa completed mtpa
Flat Products
0
2007 - 08 2008 - 09 2011 - 12 >2014

Expansion projects in pipeline:

• Chattisgarh (5mtpa) and Karnataka (3mtpa) under active review
India: Brownfield expansion project

ƒ Facilities: Blast furnace, LD, Thin Slab Caster, Pellet Plant, Coke Ovens and mine
3 Mtpa upgradation
Brownfield ƒ Capex incurred till Sep’10
Sep 10 : US$ 1,276 Mn
expansion at ƒ H2 FY11 Capex planned : US$ 659 Mn
Jamshedpur ƒ Project progression as per planned. Commissioning in H2 2011-12
ƒ Product Mix – 2.54 Mtpa Hot Rolled Coil and 0.3 Mtpa Slabs

Structural erection of JK bay in

Grinding stack at pellet plant 'I' blast furnace progress progress at LD 3-tscr site

21
India: Greenfield expansion projects

ƒ 6 Mtpa of flat products integrated steel plant in two phases Orissa Project

Orissa ƒ Construction of road inside plant and boundary wall started

Project
j ƒ Basic infrastructure work for three out of four rehabilitation
colonies completed

ƒ 5 Mtpa integrated steel plant View of Soil test at Sinter plant Area

ƒ MoU with the Government of Chattisgarh extended till June’12

Orissa Project
ƒ Prospecting License for Baladila 1 granted by Government of
Chattisgarh
Chattisgarh
Project
ƒ State Government has recommended to MoEF for final
environmental clearance
ƒ Land acquisition underway
View of Soil test at Sinter plant Area

ƒ 3 Mtpa integrated steel plant Orissa Project

ƒ MoU with Government of Karnataka and Tata Metallics signed

on June 2010
Karnataka
Project ƒ Iron ore mining concessions under active consideration by the
Karnataka State Government
ƒ Karnataka State High level clearance committee has cleared
2,500 acres of land and land acquisition underway
View of inward material section 22
COMPETITIVENESS THROUGH CONTINUOUS IMPROVEMENT

23
Creating Stronger Business for the Future
¾ The company undertook a series of measures to counter recessionary pressures in FY09 and FY10
„ Near-term alignment of production with demand through the ‘Weathering the Storm’ initiative
„ Long-term business restructuring through ‘Fit for the Future’ program
¾ These initiatives have yielded benefits of ~GBP
GBP 1 bn in FY10
¾ TSE as an organisation remains agile towards taking advantage of these initiatives going forward

WEATHERING THE STORM FIT FOR THE FUTURE

¾ K aspects
Key t off the
th initiative
i iti ti include:
i l d ¾ K initiatives
Key i iti ti i l d
include
„ Aligning production with current market demand „ Right-sizing of manpower
⎯ 3 blast furnaces idled „ Restructuring of facilities through optimization
⎯ Adjustment of logistic and supply chain „ Divestment of the non-core Aluminium business and other
⎯ Usage g of lower cost raw material allowed byy lower loss making downstream units
utilization levels „ Mothballing of TCP steel making capacity in 2010
„ Operational cash savings program ⎯ Long term off-takers unilaterally terminated 10 year

⎯ Reduction in use of 3rd party services contract in April 2009 exposing the company to
⎯ Flexible production to reduce energy costs excess slab capacity in depressed market
⎯ Reduction in employment costs like overtime and ⎯ EBITDA impacted by ~ GBP (147) mn in FY10 due

bonus to TCP related costs

⎯ General and administration cost saving programme ⎯ MoU with SSI for sale of facility (expected closure
within FY’11)
⎯ Align hedging to new activity levels

FINANCIAL BENEFIT FINANCIAL BENEFIT

„ FY09: ~GBP 712 mn „ FY10: ~GBP 107 mn

„ FY10: ~ GBP 866 mn „ Steady State benefits: ~GBP 250 mn from FY12
„ TSE is aiming to achieve ~10-15% of these as permanent „ Sale of TCP will generate further cash flows
reductions

24
Other Ongoing Efficiency Improvement Measures
¾ 4 year initiative to upgrade order fulfillment process
¾ Aims to reduce Working Capital and improve Customer Service
SUPPLY CHAIN
IMPROVEMENT
¾ Expected annual benefits in excess of ~GBP 65 mn at steady state
¾ ~GBP 150 Mn of working g capital
p expected
p to be released over the next 3-4 y
years
¾ Currently being implemented in ‘Longs’ division; will be rolled out across the company subsequently

¾ R&D initiatives to capture market share in a number of potential high growth areas:
„ PV Coating Systems- Developing state-of-the-art thin film photovoltaic systems, dye-sensitized
PRODUCT
O UC
DEVELOPMENT & PV systems and other thin film technologies
MARKETING „ Recently launched advanced high strength steel designed for the automotive industry
¾ Setting up a single global strategic marketing unit and targeting 8 key market segments in line with the
‘Customer First’ strategy

¾ Key elements of proposed ‘One Company’ transformation

‘ONE „ Customers- Marketing, sales and distribution teams aligned directly with major industries/sectors
COMPANY’ „ Supply Chain & Operations- Pan-European supply chain and manufacturing optimized
OPERATING MODEL throughout Europe
„ Information- Adoption of a platform enabling consistent information sharing
„ Brand- Roll out of Tata Steel Europe brand

¾ While the company is focusing on conserving cash, certain capital projects are being undertaken of
priority basis:
NEW CAPITAL
„ In May 2010, commissioned a BOS gas recovery plant at Port Talbot- this is expected to reduce
PROJECTS
natural gas consumption by ~60% and reduce purchase of electricity by ~20%
„ Investing in a rail facility in Hayange, France to cater to a recent 6 year contract from SNCF- the
facility is expected to be commissioned in 2011
„ Investment in No 4 furnance rebuild of Port Talbot Strip facilty announced

25
TSE Operating Model
One Integrated - Customer driven - Company

OUR CUSTOMERS & MARKETS

Sales & Marketing

Material Energy and General

Automotive Construction Packaging Rail Portfolio
Handling Power Industry
Profitabiility Optimisation

Support func
Supply Chain

ctions
Operations hubs
Strip MLE Strip UK Long EU

26
 Emerging from the crisis stronger – European Operations
EBITDA (US$ Mn)
M )
400 
197  ¾ Emerged from financial crisis as a stronger business; fundamental
200 
‐
recoveryy in operations;
p some flexible working
gppatterns established
‐200  Q2 FY10 Q2 FY11
‐400  ¾ Steel markets were always going to toughen and financial markets
‐600  ‐401 
grow nervous in H2 of this year, so we have ...
¾ …. used the first six months wisely, to:

ƒ Rebrand – market positioning improved; strength of ‘One

Company’ differentiation

ƒ Refinance – released capital investment potential

ƒ Reorganise
R i – better
b tt adapted
d t d to
t the
th new market
k t dynamics
d i
¾ And now we are reinvigorating our strategy:

ƒ Market differentiation

ƒ Technical innovation

ƒ Cost leadership
p

ƒ Operational excellence
27
Business Recovery Underway
¾ The European steel sector has continued its recovery in line with improved economic prospects and low
inventories in 2009
¾ All key steel consuming sectors (except construction) have shown strong recovery since January 2010
¾ IIn line
li with
i h these
h changes,
h TSE’ results
TSE’s l showed
h d a marked
k d improvement
i i H2 FY10,
in FY10 and
d the
h trend
d has
h
strengthened since
STEEL DELIVERIES REVENUE
Mn Tons GBP Bn
6 6.7
67 +9% 7.3
73 3 3.85
3 85 +21% 4.64
4 64

4 2

2 2.02 2.19 2.33 2.31

3.7 3.7 3.8 3.7 3.5 1 1.88 1.97
3.0

0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
FY’10 FY’11 FY’10 FY’11

EBITDA & MARGINS

EBITDA PER TON
GBP Bn Margin: -9.6% 7.7% %
GBP
EBITDA: -0.37 0.36 -55.2 49.4

0.3 8.0% 7.2% 8.2% 10.0% 50

2.7%
0.2 5 0%
5.0% 25 14.6 46.3 53.5
(0.18) 0.19 45.3
0.18 0.17 (63.0) (48.9)
(0.19) 0.0% 0
0.0 0.05 (5.0%) (25)
(0.2) (10.0%) (50)
(9.2%)
((0.3))(10 1%)
(10.1%) ((15.0%)
%) (75)
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
FY’10 FY’11 FY’10 FY’11
Note: All financials as per IFRS 28
 Savings through Improvement Initiatives – Indian
Operations

Savings by Improvement Initiatives Savings achieved in H1 FY11

US$ Mn US$ Mn
415 
450  14
400 
350  9
300 
189 
250 
200  115 
80
150
150 
100 
50 
‐
FY08 FY09 FY10

Aspire / Synergy
TOC
Marketing Initiatives

Focus on 3 Ts: “Total

Total Quality, TOC and Technology”
Technology

29
Conversion Rate USDINR – 44.9350
OWNERSHIP OF STRATEGIC RAW MATERIALS

30
TSG Raw Material Security Position

TSE India
Raw material consumption
• Iron Ore 26 mt 10 mt
• Coal 12 mt 6 mt
I
Iron Ore
O security
it 0% 100%
Coal security 0% ~50%
With Jamshedpur
Tata Steel Standalone With Tata Steel Expansion
UK 2-5 years > 5 years

Steel size* 6.8 24 28

Security ~80% ~25% ~32% ~50% ~80%

Iron Ore 100% 28% 36% 50% 80%

Coal 60% 17% 25% 50% 80%

* Production through blast furnace only 31

Source: Tata Steel Group analysis
Early Stage Investments in Minerals Assets

NML (Holdco)
„ Canada
„ TS Equity Stake: 27%
NML JV (iron ore)
„ Partner:
Partner NML Iron Ore
„ TS Equity Stake: 80%
„ Status: Initiated project Coal
development
„ Offtake rights: 100%

TSCI Sedibeng RML (Holdco) CDJV

„ Ivory Coast
„ Partner: Sodemi
„ TS Equity
E it Stake:
St k 75%
„ Status: Exploration
„ Pellets & Pellet fines
„ Offtake rights: 100%
„ South Africa „ Australia „ Australia
„ Mine Status: Mothballed „ TS Equity Stake: 24.35% „ Partners: Vale, JFE,
mine,
i operational
ti l ramp Ri M
RivMoz NSC Posco
NSC, P
up expected to be smooth „ Partner: RML „ TS Equity Stake: 5%
„ Lumps and Fines „ TS Equity Stake: 35% „ Offtake rights: 20%
„ Offtake rights: 100% „ Status: Project „ HCC and PCI
development
p commenced
„ HCC and Thermal coal
„ Offtake rights: 40%

32
 Raw Materials Project : Mozambique
¾ Measured,
M d indicated
i di t d and
d proven C
Coall R
Resources off ~4
4 Bn
B Tons
T

¾ Feasibility Study for a Stage 2 expansion to 10.6 Mn tonnes completed

¾ Environmental approval awarded

¾ Construction of Stage1 to be completed in H2 CY11 and will produce 5.3 Mn ROM tonnes per annum at
full capacity

¾ Recent tests confirm 84% increase in Coal Reserves proven and probable to 502 Mn tons and reaffirm
premium quality of Coking Coals

¾ Tata Steel has enhanced its holding in RML to 24.35% and have one director on Board. At the RML,
Mozambique level, Tata Steel has 35% equity holding & 40% offtake rights

Riversdale Benga Project : Core Yard & Motambo substation , EDM power
Construction Camp Beira Port line 33
Raw Materials Project : New Millennium Corporation

¾ After acceptance of feasibility study by Tata Steel, JV company has been formed to undertake
development of the mine

¾ Project has proven and probable mineral reserves of 64.1 Mn tonnes

¾ Production of 4 Mn tonnes of Sinter fines is expected to commence from Q3 CY2012

¾ TSL has an exclusive right to negotiate and settle a proposed transaction in respect of NML’s
NML s
LabMag Project (3.5 bn tn of Proven and Probable reserves) and the KéMag Project (2.1 bn tn of
Proven and Probable reserves)

Field site Exploration Community and people

34
Iron Ore Projects in Africa
¾ TSCI , a JV Company between Tata Steel and Sodemi

„ Development of Mt Nimba and Mt Gao magnetite iron ore deposits

„ TS has 75% equity stake (Sodemi has 15% stake and Government to have
10% at exploitation stage)
Mt. Nimba
„ Exploration license for Mt.
Mt Gao granted to Sodemi has been transferred to
TSCI
Mt. Gao
„ Possible delay in environmental clearances for Mt Nimba (world heritage site)
„ Tata Steel will have 100% off-take rights
¾ Exploration work and pre- feasibility study for Mt Gao initiated
Area Unit Mt Gao Mt Nimba

Average Grade % Fe 40% 46%

Current estimate of Resource Mn Tons ~500-600 ~800-1000

¾ Sedibeng Iron Ore Company (SIOC)

„ Iron ore deposit in Klipfontein
„ Resource size: 30 mn tons of hematite ore with 62% Fe
Klipfountein
Klipfontein
¾ Securing logistics for the project is a key component to commence production
¾ Mine is expected to produce 1 1- 2 mtpa of lumps and sinter fines from 6 months
from the date of securing logistics solution.

35
MORE FROM STEEL

36
Strategic Value Add: Downstream Operations

ƒ 100% subsidiary of Tata Steel since July 2009

Tata Steel ƒ Leadership position in steel service centre business in India with current processing
Processing & capacity of over 1.25 million tonnes per annum
Distribution Ltd ƒ Continues to act as the last mile connect for Tata Steel through induction of world class
(TSPDL) downstream equipments and capacity addition to mirror growth of Tata Steel
ƒ Acts as strategic partner for Automobile players in India

Tata Bluescope ƒ Tata Bluescope Steel Limited(TBSL) a 50:50 JV with Bluescope Steel Limited
ƒ Engaged in the business of manufacturing building products & solutions such as roll
roll-
formed roofing, wall claddings and Pre-Engineered Buildings (PEBs) from metal & color
coated steel.
ƒ Existing operations include three state of the art facilities with a total installed capacity
of 136,000 TPA in Pune, Bhiwandi and Sriperumbudur, to manufacture building
products
ƒ Presently
P tl implementing
i l ti a green field
fi ld project
j t for
f setting
tti up off upstream
t metal
t l coating
ti
(capacity of 250,000 MT) and color coating (150,000 MT) facilities at Jamshedpur, to be
operational by April 2011
ƒ A strong brand for Pre-Engineered Buildings (PEBs)

37
Strategic Value Add: Downstream Operations

Tinplate ƒ TCIL is commissioning second Cold Roll Mill to manufacture Black Plate
Company
ƒ Captive Black Plate making facility will facilitate customization, shorter delivery time and
i
improved
d yields
i ld iin making
ki BlBlack
k Pl
Plate
t
ƒ The project involves installation of an additional capacity of 200,000 TPA to reach a level
of 380,000 TPA
ƒ Tata Steel holds 45% equity and the Company will become a subsidiary following
conversion of FCD in April’11

ƒ The Global Wires Business of The Tata Steel Group is amongst the largest steel wire
Wires Division
manufacturers in the world (largest in India, Thailand & Sri Lanka), with eight
manufacturing facilities in India, China, Thailand and Sri Lanka
ƒ Combined annual manufacturing capacity of 670,000 MT and includes 1900 employees
worldwide, catering to the construction, automotive, power and retail (galvanised wires)
segments

38
 Strategic Value Add: Brand Management India
Sale of Branded Products

1,514  1,519 
1 600
1,600  35%
1,400 
26% 1,277  28% 28% 29% 30%
1,200 
25%
1,025 
1,000 
20%
800 
15%
600 
10%
400 
200
200  5%

‐ 0%
FY07 FY08 FY09 FY10
Sale (US$ Mn) Market Share (%)
% to total sales

¾ ~300 dealers added to increase reach in retail rebar segment

¾ Launched “Tata
Tata Tiscon Ready Build Brand
Brand” for sale of Cut & Bend
products
¾ Introduced “Shaktee Sansar”, an initiative based on the concept of
‘Shop-In Shop’ & “Shaktee Pariwar” , an initiative for building
relationship with loyal Shaktee dealers in the flat product segment
39
Conversion Rate USDINR – 44.9175
 Strategic Value Add: TSE Product Positioning

Aerospace
TSE supplies a wide range of metal
solutions used in major commercial and
military aerospace projects around the
world.
Automotive
The steel products manufactured by TSE
are ideal materials for vehicle manufacture.
Consumer Products
TSE supplies metal for a wide variety of
consumer products, including domestic
appliances, electronics and furniture.
Energy and power generation
As global demand for key energy sources
increases, TSE plays an essential role in
their extraction and distribution.
Rail
TSE is a supplier to many of the
prestigious railway systems around the
globe
globe.
Packaging
TSE is one of Europe’s leading suppliers
of high quality packaging steel, not only
for food and drink, but also for
household, promotional and industrial
products.
Shipbuilding
From giant supertankers to fast ferries,
TSE is actively involved in suppling
metal solutions to the shipbuilding
industry.
Security and defence
TSE supplies a number of specialist
solutions for the security and defence
markets.

Engineering Yellow Goods

The versatility of the products manufactured TSE is a key supplier of material
by TSE is evident in the sheer number and for construction and earth moving
diversityy of their applications
pp in engineering
g g q p
equipment, , q
quarrying
y g equipment
q p and
industries. fork lift trucks.

40
CONTROL OVER SUPPLY CHAIN

41
Strategic Value Add: Logistics Enhancement

Tata NYK Shipping ¾ A 50:50 JV between Tata Steel and NYK Shipping, Japan, currently
operating 11 vessels
¾ Plan to operate 30 vessels by 2015 including 14 owned vessels with a
judicious mix of Capesize vessels and Supramax/Panamax vessels
¾ Focussed on it and out bound India centric dry bulk cargo and TS Group
worldwide
Dhamra Port
Ship anchored at the port ¾ Dhamra Port Company Ltd (DPCL) a 50:50 JV with L&T
¾ All-weather deep sea port awarded on 34 year Concession by Government
of Orissa
¾ Port is expected to be fully operational by mid Jan 2011. Trial Operation has
commenced, first ship arrived in September 2010 carrying coal cargo
¾ Significant capacity booked through finalization of 3-5yr contracts

¾ Partnership between Tata Steel, NYK and Martrade

TM Intl Logistics ¾ g
Door-to-door cross border logistics solutions company
p y with expertise
p in
project cargo handling
¾ Dedicated berth operations at Haldia and port management services in
eastern India
¾ Focused on break bulk chartering and freight forwarding business

42
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

43
 Group Financial Highlights – Half Year Ended 30th Sep’10

Deliveries Mn T Turnover US$ Mn

14.00 14,000  12,427
11.28
8 11.72 10 835
10,835
12 00
12.00 12 000
12,000 
10.00 10,000 
Q2 5.82 Q2 6,375 
8.00 Q2 6.05 8,000  Q2 5,652 
6.00 6,000 
4,000 
4.00 Q1 Q1 6,052 
Q1
5.23 Q1 5.90 2,000  5,183 
2.00
‐
0.00
H1 FY10
H1 FY10 H1 FY11
H1 FY11
H1 FY10 H1 FY11
EBITDA US$ Mn PAT * US$ Mn
2,500 
,
2,008 1,000  847
2,000 
500  Q2 440 
1,500  Q2 1,001  Q1 406 
‐
1,000 
Q1 H1 FY10
H1 FY10 ‐492 
492 H1 FY11
H1 FY11
‐500 
500 
135 Q1 1,007  Q2 ‐602 
Q2 90  ‐1,000 
‐
Q1 45 
H1 FY10
H1 FY10 H1 FY11
H1 FY11 ‐1,500 
1 500 -1 094
-1,094

44

Conversion Rate USDINR – 44.9350 ; * PAT after Minority Interest and Share of Associates
 Operating Performance – Indian Operations

Deliveries Mn T Turnover US$ Mn

1.80 1.66 1,800  1,582 
1.60 1.46 1 40
1.40 1,600 
, 1,458 
,
1.40 1,400  1,267 
1.20 1,200 
1.00 1,000 
0.80 800 
0 60
0.60 600
600 
0.40 400 
0.20 200 
0.00 ‐

Q2 FY10 Q1 FY11 Q2 FY11 Q2 FY10 Q1 FY11 Q2 FY11

EBITDA & EBITDA/t US$ Mn / PAT US$ Mn

US$
800  748  500  460 
700  660  450
450 
600  471  400  351 
500  445  350 
451  300 
400  305 
250  201 
300
300  200
200 
200  150 
100  100 
50 
‐
‐
Q2 FY10
Q2 FY10 Q1 FY11
Q1 FY11 Q2 FY11
Q2 FY11 Q2 FY10 Q1 FY11 Q2 FY11
EBITDA/T
45

Conversion Rate USDINR – 44.9350

 Ferro Alloys & Minerals Division – Indian Operations

Operating Trends Sales Composition in Q2 FY11 K Tons

1600 1,486  50  36 

45  38 
1400 45 
1,190  1,331  12 
1,128  1,131  45  40 
1200
3
35  45
45 
1000
31 
26  30 
800 25 

600 16
16  20 
445 406 366 15  121 
400 347 302
10 
200 5 
114 
0 ‐
Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11

Ferro Alloys Deliveries ('000t) Ferro Chrome Ferro Manganese

Ferro Alloys FAMD Ferro Chrome NR (US$/t) Chrome Concentrate Dolomite

Pyroxenite Others
Ferro Alloys FAMD Operating Profit (US$ Mn)

46
Conversion Rate USDINR – 44.9350
 Key Highlights – European Operations
Deliveries Mn T Turnover US$ Mn
4.50  5,000 
3.84  3.71  4,500  4,092 
4.00  3.53  3,732 
, 3,941 
3 50
3.50  4 000
4,000 
3.00  3,500 
3,000 
2.50 
2,500 
2.00 
2,000 
1.50  1 500
1,500 
1.00  1,000 
0.50  500 
‐ ‐
Q2 FY10 Q1 FY11 Q2 FY11 Q2 FY10 Q1 FY11 Q2 FY11

EBITDA US$ Mn PAT US$ Mn

400  303  100  34 
300  197
197  ‐
200  ‐100 
Q2 FY10 Q1 FY11 Q2 FY11
100  ‐200 
‐ ‐300  ‐62 
‐100  ‐400 
Q2 FY10 Q1 FY11 Q2 FY11
‐200  500
‐500 
‐300  ‐600 
‐700 
‐400 
‐800 
‐500  ‐401  ‐900  ‐822 

47
Conversion Rate: USDINR – 44.9350
 Quarterly Trends – European Operations
Average Selling Prices US$ / T Raw Materials Costs Per Tonne US$ / T
1,200 
1,059  1,108  500 448
450
1,000  374
5% 400 20%
800  350
300
600  250
200
400 
1 0
150
200  100
50
‐ 0
Q1 FY11 Q2 FY11 Q1 FY11
Q1 FY11 Q2 FY11
Q2 FY11

Deliveries Mn T EBITDA US$ Mn

4.00  3.71  3.53  350 
3 50
3.50 
303 
5% 300  35%
3.00 
250 
2.50  197 
200 
2.00 
1 50
1.50  150
150 

1.00  100 
0.50  50 
‐ ‐
Q1 FY11 Q2 FY11 Q1 FY11 Q2 FY11

48
Conversion Rate: USDINR – 44.9350 ; GBPUSD – 1.5716
 Operating Performance – South East Asian Operations

Deliveries Mn T Turnover US$ Mn

0.90 0.80 0.79 700 
0.80 0.75 574  582  598 
600
600 
0.70
0.60 500 
0.50 400 
0.40
300 
0.30
0.20 200 
0.10 100 
0.00
‐
Q2 FY10 Q1 FY11 Q2 FY11 Q2 FY10
Q Q1 FY11
Q Q2 FY11
Q

EBITDA US$ Mn PAT US$ Mn

40  38  20 19
35
35  33
33  18
29  16
30 
14 13 13
25  12
20  10
15
15  8
6
10 
4
5  2
‐ 0
Q2 FY10
Q2 FY10 Q1 FY11
Q1 FY11 Q2 FY11
Q2 FY11 Q2 FY10
Q2 FY10 Q1 FY11
Q1 FY11 Q2 FY11
Q2 FY11

49

Conversion Rate USDINR – 44.9350

 Tata Steel Group Profit & Loss Account – H1 FY11
Figures in US $ Mn unless specified

H1 FY11 H1 FY10

Deliveries  (Mn Tonnes) 11.72 11.28

Turnover 12,427 10,835
EBITDA 2 008
2,008 135
EBITDA /Tonne (US$) 171 12
EBITDA Margin
g 16.2% 1.2%
Net Finance Charges 281 356
PBT Margin (%) 9.86% ‐9.1%
PAT Margin (%) 6.8% ‐10.1%

50
Conversion Rate USDINR – 44.9350
 Tata Steel Group Balance Sheet Account – H1 FY11
Figures in US $ Mn unless specified
H1 FY11 FY10

Share Capital 201 197

Reserve & Surplus , Share Warrants & Minority Interests 6,151 5,081
Loans 12,448 11,817
Total Funds Employed
Total Funds Employed 19 503
19,503 17 757
17,757

Fixed Assets (Net Block) 10,895 10,192

Investments 1,049 1,206
Net Current Assets 4,171 3090
Total Application of Funds
l li i f d 19,503 17,757

51
Conversion Rate USDINR – 44.9350
Tata Steel Group EBITDA Trend

Reported 757 1,187 1,007 1,001

45 90
EBITDA
(US$ Mn)

1,200 

1,000 

800 

600  1,058  841 

1,004 
400  667 

200 

41  82  90  4  160 

129 
‐ 4  8 
Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11

Profit on Sale Of Investments (US$ Mn) Operational EBITDA (US$ Mn)

52
Conversion Rate : USDINR – 44.935
Capital Structure

UoM Target Act (H1)

EBITDA/t - India US$ 350 413

EBITDA/t - Europe
E US$ 100 73

Net Debt/Equity times 1.0x 1.52

Net Debt/EBITDA times 2.0x 2.77

Interest Cover(EBITDA/net Int) times 8x 6.42

Total Debt US$ Bn 9.2 11.79

( Based on above matrix)

53
Financial Analysis FY09-FY11:
Tata Steel Group
p
Net Debt (US$ bn) Net Debt / LTM EBITDA 
15.3x
13.0  12.5  16.0x 13.7x
12.5  14.0x
12.0  11.3  12.0x
11.2  11.3 
11.5  10.9  10.0x
11.0  10.7  8.0x
10.5  10.2  6.0x 4.3x 4.7x
9.9  2.7x 3.3x 2.7x
10.0  4.0x 2.4x
95
9.5  20
2.0x
9.0  0.0x
Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2 
FY'09 FY'09 FY'10 FY'10 FY'10 FY'10 FY'11 FY'11 FY'09 FY'09 FY'10 FY'10 FY'10 FY'10 FY'11 FY'11

LTM EBITDA / LTM Net Interest  Net Debt / Equity 
8.0x 6.9x 6.6x 2.4x
7.0x 5 6x
5.6x 2 1x
2.1x
6.0x 5.0x 22
2.2x 21
2.1x
5.0x 1.9x 1.9x
3.4x 2.0x
4.0x 3.1x 1.8x 1.8x 1.8x
1.7x
3.0x 1.8x
2.0x 1.0x 1.2x
1 6x
1.6x
1.0x
0.0x 1.4x
Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2 
FY'09 FY'09 FY'10 FY'10 FY'10 FY'10 FY'11 FY'11 FY'09 FY'09 FY'10 FY'10 FY'10 FY'10 FY'11 FY'11

54
Financing Portfolio & Capital Raising

ƒ Raised US$ 230 Mn through preferential allotment issue of shares and

Equity Raising
warrants to Tata Sons in July’10

Debt ƒ Tata Steel Europe prepaid £112.5 Mn in May’10

Pre/Repayment ƒ Repaid ~US$ 1,272 Mn in H1 FY11 (including prepayments)

ƒ Contracted US$ 350 Mn loan for working capital purposes

ƒ Finalized commitment to raise US$ 646 Mn, 20 year Non Convertible Debentures
Fund Raising
to fund the growth projects
ƒ Steps taken to refinance part of Tata Steel’s Group debt

Portfolio ƒ NatSteel Holdings Pte. Ltd. has sold its entire 27.03% stake in Southern Steel
Review Berhad, Malaysia to Signaland Sdn Bhd at a total consideration of ~US$ 72 Mn

ƒ Realised US$ 228 Mn from the sale of group company holdings in H1 FY

FY’11
11
Other ƒ Board has approved raising of additional capital upto US$ 1.5 Bn
Developments

55
Refinancing Completed – European Operations

¾ Refinancing of £3.53 Bn term loan and revolving credit facilities completed

¾ The
Th new Senior
S i F Facilities
ili i A d on 29th September
Agreement was executed S b 2010
2010.
The new loan was drawn on 7th October 2010 and the entire amount
outstanding
g under the acquisition debt facilities was repaid

¾ Key Benefits
Refinancing of
ƒ Termed out Maturity (£350 Mn over the next 3 years)
Term Loan
at ƒ Consolidation of lender group (13 banks funded the entire facility at
Tata Steel
inception. Facility is being selectively syndicated)
Europe
ƒ No EBITDA linked covenants for 4.5 years

ƒ Ability to raise debt via capital market issuance provided proceeds are used
for prepayments

ƒ Additional flexibilities to borrow for working capital purposes and to incur

capex

56
Agenda

¾ About Tata Group

¾ About Tata Steel Group

¾ Global Markets & Steel Sector Update

¾ Strategic Positioning

¾ Key Operating & Financial Highlights – FY’11

¾ Conclusion

57
Conclusion

¾ Steel industry: The sector is in a secular uptrend with demand expected to

outstrip supply over the longer term, especially considering the challenges in
ramping up capacity

¾ Macroeconomic fundamentals: Global economy seems to be coming out from

the gloom of 2008 and fears of double-dip recession in the US and Europe are
receding. India and other emerging market fundamentals meanwhile remain very
strong

¾ TSL’s capacity expansions (brown and green field) are focused on the growing
Indian and emerging markets,
markets where demand is expected to be strong

¾ Strong improvement in TSE’s operating and financial performance over the past
3-4
3 4 quarters as European operations emerge from the worst of the crisis

¾ Raw material security remains a key priority for the group and various initiatives
in this direction are expected to improve the group
group’s
s position in the medium term

58
Thank You

59