Investor Conference
Singapore March 8-10, 2004

Presentation Outline • Economy and Steel • Trends Impacting the Steel Industry • Positioning of Tata Steel • Cost Structure Comparisons • Long Term Plans

Steel – A Dominant Metal in the World
1000
Growth Asia – CAGR (excl. Japan) 1993-’98 : 4.3% 1998-’03 : 9.2% Crude Steel in million tonnes

800

600
Growth World - CAGR 1993-’98 : 1.3% 1998-’03 : 4.0%

400

200

0 '91
Source: IISI

'94

'97

'00

'03

Importance of Steel

Steels of Yesterday • Dull • Grey • Commodity • Useful but uninteresting • Limited strength range • Heavy • Prone to rust .

Corrosion resistant • Environment-friendly • Recyclable.Steels of Today • Product of “beauty” • Durable. reusable • Branded products • Complex shapes • Wide combinations of properties .

Values in monetary units of each country converted into dollars at the purchasing-power-parity or PPP exchange rates estimated by Geary and Khamis. expressed in 1990 US dollars 9000 8000 7000 Steel Consumption 160 140 120 100 80 10 Period Moving Average Steel Consumption GDP bn 1990 Int $ 6000 5000 4000 3000 2000 1000 60 40 20 0 0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Source: IISI. The World Economy: A Millennial Perspective.USA: GDP & Steel Consumption GDP in billion 1990 International Geary-Khamis dollars . 2001 mtpa . Angus Maddison. OECD.

The World Economy: A Millennial Perspective. OECD.China & India: GDP & Steel Consumption GDP in billion 1990 International Geary-Khamis dollars 5000 4500 4000 3500 China GDP 250 200 bn 1990 Int $ 3000 2500 2000 1500 1000 500 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 India steel consumption India GDP China steel consumption 150 mtpa 100 50 0 Source: IISI. 2001 . Angus Maddison.

World Steel Consumption growing at 5 .5% in 1995 to 31% in 2004 Source: IISI .6% 1000 900 800 936 781 672 114 95 121 153 174 290 Million tonnes 700 600 500 400 300 200 100 0 483 487 493 1998 2001 2004(E) China Rest of Asia(w/o Japan & Midd. East) Rest of the World China ~ Share of global steel consumption from 13.

3.5.3% China 290 257 375 (Hi) 355 (Med) 330 (Low) 211 Significant new capacity coming on line in China by end of 2005 World 1200 1100 mmt 1000 900 800 2002 Source: IISI CAGR (2002-07) High Low .9% .Global Steel Demand : Long term outlook 400 350 mmt 300 250 200 2002 2003 2004 2007 CAGR (2002-07) High Low .10.6% 1089 (Hi) 936 884 1041 (Med) 991 (Low) Medium – 4.6% 831 2003 2004 2007 .2% Medium .12.5% .9.

India .Key Concerns • Budget deficit • Spend on infrastructure • Labour laws • Growth in pockets • GDP distribution .

Global Steel Industry Outlook : Positive Key Concerns • Global demand : 950 mill t ’04 @ 6% • Steel sector .Logistics • Chinese steel production : 21% in 2003. 220 mill t + • Weaker Dollar - costs in $ • Continuing consolidation • Uncertainty : @ demand growth .Coal .Metallics .Iron Ore .Still fragmented • Demand for Flats in China : Imports for sometime • Volatile prices .

4 0.1 3.7 .5 2003E 6675 5150 8.9 17.India and China – New drivers of global economy India 1999 GDP (US$ Bn at PPP) GDP per head (US$ at PPP) Real GDP Growth (%) FDI (Inwards as % of GDP) External Debt (% of GDP) CPI (Average %) Source: Economist Intelligence Unit Website China 2003E 2951 2780 6.3 -1.0 1999 4566 3650 7.4 1.0 2252 2260 7.1 0.4 13.5 22.1 4.7 4.6 3.9 15.

At an Inflection Point • Peace initiatives with Pakistan • Integration in global economy • Acceptance as world power • Rapid economic growth • Strong foreign exchange reserve • Low inflation & interest rates • Divestment of public sectors • Boost in investments .India .

’04 .India : Young & Growing Source : The Economist – Feb 21.

India Crude Steel Production Volume Time .

Presentation Outline • Economy and Steel • Trends Impacting the Steel Industry • Positioning of Tata Steel • Cost Structure Comparisons • Long Term Plans .

and substitutes Iron Ore demand and freight capacity Steel Demand : China. other developing regions Reducing steel tariffs and global integration of steel industry .Trends impacting the Steel Industry • • • • • Consolidation Scrap availability.

Presentation Outline • Economy and Steel • Trends Impacting the Steel Industry • Positioning of Tata Steel • Cost Structure Comparisons • Long Term Plans .

Weighted Average Score 4.2003 .5 7.5 6.5 Posco BaoSteel Tata Steel Nucor Gerdau BHP Steel Severstal CST China Steel SDI CSN Anshan Steel Nippon Steel JFE 5.5 8.5 Source : World Steel Dynamics World Class Steel Makers .

68 3.26 15.52 4.46 4.20 3.Raw Material Consumption 5 Tonnes / t of Sal.000 tpd 4.33 4.93 3.01 3.56 3. Steel 4.19 4 3 FY'94 FY'96 FY'98 FY'00 FY'02 H1 FY'04 .06 4.

J. RH (Multi fun. I. De-sulphurisation Slab Casting RH ECL CAPL Combined Blowing RHOB Vertical Caster Coupled PLTCM Hydrogen Annealing Scarfing Machine L. B. & White Goods A. Const. F. G. K.. M. E. Burner) EMS Plasma Heating Automatic Inspection 75 % N M L K I J H O O H G K D 47 % Advantage of a late start G F D AB 1965 IJ F A B C 85 90 95 2000 05 C E 70 . D. O. H. N.Technology Maturity Curve: Cold Rolling % Production of Auto. C.

Labour Productivity 300 250 200 150 100 50 0 FY'78 FY'83 FY'88 FY'93 FY'98 FY'03 Tonnes/man year CAGR TILL FY’92 : 0.5 % CAGR POST FY’92 : 11.7 % 256 73 78 .Tata Steel .

Product Mix Improvement Apr-Dec FY ‘04 (Actual) Market Attractiveness H 50% FP – 58% LP – 33% M L L M H Apr-Dec FY ‘03 (Actual) Market Attractiveness H Competitive position 40% FP – 52% LP – 17% M L L M H Competitive position .

Dominant Position in CR OEM Market Period : Apr .Dec CRCA (Auto Direct) 100 80 60 40 20 0 FY'01 FY'02 FY'03 FY'04 CRCA (Auto Ancillaries) 44% 50% 40% 30% 80 60 40 33% 27% 18% 10% 40% 30% 20% 10% 0% 29% 15% 18% 20% 10% 0% 20 0 FY'01 FY'02 FY'03 FY'04 CR (Appliances) 8 Galvanized (Construction) 16% 20% 120 100 80 21% 17% 12% 5% 25% 20% 15% 10% 5% 0% 13% 4 8% 8% 10% 60 40 20 0 0 0% FY'01 FY'02 FY'03 FY'04 FY'01 FY'02 FY'03 FY'04 Market Share ’000 tonnes .

5 2 1.5 0 High Carbon Wire Rods 15% 120 100 13% 55% 36% 24% 38% 60% 10% 6% 5% 80 60 40 20 40% 20% 0% FY'01 FY'02 FY'03 FY'04 0 0% FY'01 FY'02 FY'03 FY'04 Market Share ’000 tonnes Started producing Galvanized (Auto) and Galvanized (Appliances) since FY’03 only .Dec HR (Auto Segment) 200 160 120 80 40 0 FY'01 FY'02 FY'03 FY'04 Galvanized (Auto) 75% 70% 65% 73% 64% 5 4 3 2 1 0 9% 12% 8% 4% 4% 53% 52% 60% 55% 50% 0% FY'01 FY'02 FY'03 FY'04 Galvanized (Appliances) 2.5 1 0.Gaining Market Share in Focus Segments Period : Apr .

75 2.99 YoY 5.91 2.2 3 2.51 2.8 2.3% 242 Fy'04 116.9% YoY 30.6 2.4 3.8% Mn tons 2.7% Fy'02 Fy'03 Fy'04 Fy'02 Fy'03 Fy'04 Revenue Operating Profit / Net Profit 1827 YoY 600 500 400 300 200 100 0 2000 1500 1000 500 0 US $ Mn 1142 86 1057 US $ Mn 309 191 17 Fy'02 112 Fy'03 Net Profit 1402 184 1219 230 1598 501 YoY 61. Fy’04 Crude Steel Production Sales Volume 3.6% Fy'02 Fy'03 Domestic Fy'04 Exports .2 2 2.8 2.82 YoY 5.Performance : Apr-Dec.4 2.17 2.6 Mn tons 3 3.

5 billion during 1980 .Continuous Investment 2002-03 Capex >USD $ 4.2003 • F Blast Furnace • Billet Caster #1 of LD #1 CRM (1998-02) Rolling Programme (1981-02) • Pickling Line • Galvanising Line Phase 4 (1996-98) Phase 3 • Expansion of Flat Products to 2 MT (1990-94) Phase 2 (1985-88) Phase 1 (1980-83) • LD Shop 1 • Hot Strip Mill (1 MT) • LD Shop 2 • Sinter Plant • Wire Rod Mill .

EBIDTA Comparison 50 40 Net Profit % of Net Sales % 30 20 10 0 FY'98 Tata Steel FY'99 FY'00 China Steel FY'01 FY'02 FY'03 Arcelor FY'04 Nucor POSCO Source: Company web-sites and Analyst reports .

t previous period is in terms of USD $ .827 million : USD $ 230 million : USD $ 367 million : USD $ 242 million : USD $ 112 million : USD $ 0.Apr-Dec FY’04 Vs Apr-Dec FY’03 : Highlights • • • • • • Turnover Exports Revenue PBT PAT EVA Positive EPS : USD $1.66 ( 30%) ( 25%) (172%) (117%) (183%) (117%) Note:.r.% increase w.

53 39.39 1.89% 0.43% 2.86 11.20 44 46 42 Category Unit % % USD $ USD $ % % USD $ million Times Times Profitability Shareholder Returns Cash Generation Stability EBIDTA Margin * Net Profit Margin * Earnings per Share Net Worth per share Return on Equity ** EVA ** EBIDTA Debt : Equity *** Interest Coverage Apr-Dec FY'04 32. Debt = Secured loans + Unsecured loans .56 1.66 2.39 5.44% 8.16% 14.79% 5.05% 317 1.47 28 41 18 Activity Times Fixed AssetsTurnover Avg Debtors Velocity No of days Avg Inventory Turnover No of days Avg Net Working No of days Capital Turnover * EBIDTA margin and Net Profit Margin calculated as % of Net sales (Gross Sales – Excise duty) ** Annualised *** Equity = Share Capital + Reserves & Surplus – Miscellaneous expenditure.Key Financial Ratios Apr-Dec FY'03 25.30 1.69 26.97% 0.36% 523 0.

Tata Steel : Sustainable Performance Apr-Dec FY04 Performance • Highest ever sales • Saleable steel production crossed 3 million tonnes • Richer product mix • Better realizations • Competitive cost position • Branded products at 21% of Gross Turnover Advantages • Own raw materials • On-going cost reduction initiatives • Re-engineered business process • Not dependent on exports • Strong Balance Sheet • Operates in a high growth market .

00 2.4 6.0 ` 4.2 3.8 2.00 FY'91 FY'93 FY'95 FY'97 FY'99 FY'01 FY'03 FY'05 FY'07 .Tata Steel .Growing Crude Steel Production 8.1 4.00 Million tonnes 7.3 4.3 4.3 2.00 5.

Enriched Product Mix HR 34% Semis 3% HR 38% CR 21% CR 21% Semis 7% Galv.82 million tonnes ’03 (Actual) .0 million tonnes ’06 (E) Longs 25% Galv. 9% 3. 8% Longs 34% 5.

o f To t a l P r o d u c t s 50 0 Tata Tiscon ( Rebars ) 19% 31% 40 30 ‘000 Tonnes 400 300 200 10 0 0 F Y '0 1 F Y '0 2 F Y '0 3 F Y '0 4 7% 14% Percentage 20 10 0 .Dec 500 Tata Shaktee GC + Tata Steelium CR 22% 40 ‘000 Tonnes 400 300 200 10 0 0 F Y' 0 1 F Y' 0 2 F Y' 0 3 3% Percentage 30 20 6% 7% 10 0 F Y' 0 4 B r a n d e d P r o d u c t s ( To n n a g e ) % B r a n d e d .Enhancing Focus on Branded Products Period : Apr .

Branding in .

9 4.00 Million tonnes 5.00 ` 3.00 4.00 2.5 5.2 3.6 2.5 2.1 2.00 FY 94 FY 96 FY 98 FY 00 FY 02 FY 04 FY 06(E) .9 2.5 3.Enhancing Sales 6.0 3.4 4.8 2.2 2.4 3.

Presentation Outline • Economy and Steel • Mega Trends Impacting the Steel Industry • Positioning of Tata Steel • Cost Structure Comparisons • Long Term Plans .

5 Source : CRU . FY'03 CRU .Flats CSN Tata Steel Tata Steel Brazil Posco K'wang Korea BAO Shanghai China $/t COKE SINTER HOT METAL LIQUID STEEL SLAB CASTER H R COIL Act.International Cost Competitiveness .ESTIMATE 2003 60 16 78 124 132 158 74 18 96 146 160 204 101 21 96 147 161 199 101 39 119 161 171 219 91 37 134 182 193 226 Re/ $ =48.

Cost Competitiveness Indexed 210 180 Cumulative inflation 150 120 90 Cost 60 Real cost 30 93 95 97 99 '01 .

Presentation Outline • Economy and Steel • Trends Impacting the Steel Industry • Positioning of Tata Steel • Cost Structure Comparisons • Long Term Plans .

Multi location global presence in auto and construction • Connect domestic and global operations • Grow the minerals business into a global entity . strong brands • Establish 5~6 mtpa capacity at other locations in India • Establish global presence : 4~5 mtpa.Plan : 2004 to 2010 • Maximise the potential at Jamshedpur • Move up the value chain.

World Crude Steel Production 1000 100 750 75 No of Countries Million tpa 500 50 250 25 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 0 Crude Steel Production Source: IISI No of Countries No of Countries > 5 mtpa .

Mine head production Reduction in costs ~ $ 25-50/t Investments in developing countries represents lower risk CONDITIONS FAVOURING INDIA • Access to high quality iron ore • Proximity to SE Asian markets • Avoidance of high costs associated with deep sea ports. Reduced freight costs • Skilled and innovative workforce.De-Integrated Production • • • De-integration of the steel value chain . globally competitive labour costs .

T Dhamra Distance from (Kms) Jamshedpur (present) Dhamra 372 372 522 290 Paradip Jamshedpur (post D-B line) Joda (present) Joda (post D-B line) .Jamshedpur Haldia Iron Ore ~ 10 Bill.

Drivers of the Global Economy .

Tata Steel : The Path Forward • Dominant Asian low cost steel major • Value addition through de-integrated production • Dominating high end flats market in India • Strong player in construction segment • Alliances with leaders of steel technology .

near its production facilities • In a ‘high growth’ market • High quality products. in premium segments of the market • Position of strength in the home market . ongoing cost reduction programs.A ‘Globally’ Competitive Business Model • Ranked consistently amongst the top three steel producers • Amongst the lowest cash operating costs. high profitability and strong balance sheet • Privileged access to raw materials.

Statements in this presentation describing the Company’s objectives. projections. tax laws and other statutes and incidental factors . changes in Government regulations. expectations may be “forward looking statements” within the meaning of applicable securities laws and regulations. estimates. among others. economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates. Important factors that could make a difference to the Company’s operations include. Actual results could differ materially from those expressed or implied.

Thank You .

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