Impact Covid-19 Response to Covid-19

Teams' View
World –ex China steel Initiated employee welfare programmes like 24*7
production declined amid covid 19 helpline, preventive measures as per govt.
weaker demand​ Mandate, upskiling with e-courses, WFH option etc
•Uncertain macroeconomic conditions expected to 
keep demand suppressed  Industries are estimated to Optimising plant operations and ramping up mining
•Steel consuming sectors, especially the automotive have lost about 2-3 months operations since May 2020
output with disruption in
sector, continues to struggle global value chains due to Ramping up exports to counter closing of Indian
•High % of steel imports to total consumption in EU Covid-19 market due to nation-wide lockdown
intensifies the industry's pressure on EU commission
Capacity utilization fell Managing liquidity aggressively by cutting costs
to act to 50% in April 2020  and using diversified sources of funds
Mum
Valuation Risks Steel demand outlook (% YoY) Crude steel production (mn tons, monthly)
20% 15% 100.00
10%
7% 2020
Upside Risks Downside Risks 10% 4%
-6% 1%0% 2021
80.00
0%
Higher-than-expected growth -10% World China EU India RoW 60.00
rate due to pent up demand & Weaker-than-expected steel -20% -13% 40.00
-16% -18%
new product launch prices and delay in domestic
Key Steel consuming sector growth YoY 20.00
demand recovery 50%
Stake acquisition by British Auto
0.00
India
Govt. in Port Talbot steelwork, Cons
Continued disappointment in 0%

18

19
8

De 8

M 8
9

De 9

M 9

M 0
0
-2
-1

1
-1

1
-2
Wales India

n-

p-

c-

n-

c-
p-
ar

ar

ar

ay
Q1F

Q2F

Q3F

Q4F

Q1F

Se
Ju

Ju

Se
global earnings & cash burn

M
Auto
Eu
Higher than expected inflation Cons
World ex-China China
rate due to overheating of EU
India
-
economy
Source: Bloomberg, IMF, SIAM, Joint plant committee, MOSPI, World Steel Association, Eurofer, Eurostat and Tata Steel TATA STEEL 1