Tata Steel

Towards Growth & Globalisation

Analyst Meet – Mumbai

January 31, 2008

1
Agenda

† Integration
† Tata Steel 9 months Performance
† Corus Performance 2007 & Guidance
† Outlook

2
Rationale for acquisition

† Synergies
† Raw material integration
† New markets
† Global scale / internationalisation

3
Integration
Synergies Achievements to Date

Manufacturing 57 % Increased BF Productivity

Reduced coke consumption
Strengthening of CIP
Procurement 11% Combined buying
Rationalisation of suppliers

Financing & Re-structuring of Organisation

Corporate 32% Re- financing

100%= $ 450 mn Run rate 30%

4
Audited by Deloitte
 Management Structure

Tata Steel Board

Tata Steel ExCo Group Corporate Functions Corus ExCo

MD CEO
Technology & Integration *
COO Finance * COO
Strategy *
Communications
Director South East Asia Global Minerals Strip Products Division Director

VP Engineering & Projects Long Products Division Director

D&BS Division Director
VP Corporate Services
Director Finance
Chief Human Resource Officer Director Human Resources

Chief Financial Controller Director Legal, Compliance &

Secretariat

5
Strategy & Integration Committee (*) Members of Tata Steel and Corus Executive Committees
Raw material security
Mozambique Coal Project

† JV agreement with Riversdale Mining Limited for Benga &

Tete coal tenements – 35% equity stake for A$ 100million

† Mozambique Company owns 25 thousand hectares of coal

tenement with Inferred coal resource of ~ 1.225 bn tons in
Benga.

† The production is expected to commence from 2010

† Offtake Agreement for 40% of coking coal on commercial

terms

† Feasibility study & Discussions on logistics with Govt of

Mozambique have been initiated.

6
Raw material security
Iron Ore Project in Ivory Coast

† JV agreement with State owned company Sodemi

for exploring & developing Mt Nimba iron ore
mine

† 75% stake in the JV company Tata Steel Cote d’

Ivoire S. A.

† Mt Nimba has estimated reserves > 500 mn tons

of Itabirite Iron ore.
7
 Raw material security
Limestone Project in Oman

† Entered into 70:30 joint venture with Al Bahja Group by

participating in its existing mining company, Al Rimal Mining
LLC

† The scope of the JV - mining of metallurgical grade

limestone from Uyun Mine in Salalah, in Southern Oman

† Production is expected to commence by 2010

† The initial phase of the projects covers exploratory drilling &

feasibility study along with EIA.

8
Raw material security
Coal Joint Venture in India

† JV to establish a 50:50 JV with SAIL for coal

mining
• JV Company will identify and mine coal blocks
for securing assured coking coal supply.

• 4 coking coal blocks in Jharkhand being

evaluated by joint working group

• The JV Company formation is expected to be

completed by March 08.
9
Tata Steel Performance

† Operating Performance
† Financial Performance
† Financing Issues Update
†Update on Growth Projects

10
 Key highlights (9 Months - FY 2007-08)
Tata Steel Limited (Standalone Company)

ƒ Turnover up by 10% at Rs. 14,264 crores (USD 3,611 million)

ƒ EBITDA up by 13% at Rs. 6,129 crores (USD 1,552 million)

ƒ Profit After Tax up by 12% at Rs. 3,482 crores (USD 882 million)

ƒ Rights issue of Equity Shares and Cumulative Convertible Preference

Shares completed.

ƒ Acquisition financing substantially completed.

11
Operational Highlights Apr - Dec (FY 08 vs FY 07 )

•Major shutdown in LD#1 for

In mtpa maintenance
Production • Major shutdown in LD#2 for
upgradation
•Power outage in April &
4.14 4.10 June
3.71 3.74 3.59 3.66

Hot Metal Crude Steel Saleable Steel

9M FY 08 9M FY 07

12
 Steel Sales Apr- Dec (FY 08 vs FY 07 )
3.53 mill ton A-Dec FY 07 3.50 mill ton A-Dec FY 08

Semis,
27,583 , 1% Semis, 26,089
HR, , 1%
1,007,017 , HR, 1,005,216
Longs, 28% Longs, , 29%
1,239,632 , 1,168,827 ,
35% 32%

Galv, 373,136
CR, 929,521 ,
, 11%
Galv, 27%
CR, 908,021
351,213 , , 26%
10%

13
Marketing and Operating Highlights

Long Products
ƒ Converted Institutional segment
customers to superior strength rebars
(Grade Fe500) to create a differentiation
with regard to secondary market.
ƒ Launched ‘TATA TISCON SD’ seismic
resistance rebar in the retail segment

14
Marketing and Operating Highlights

Flat Products
Automative
ƒ International global majors like Nissan , Volkswagen ,
Renault have identified Tata Steel as their local steel
partners for their projects in India
ƒ New Products developed for Wheel segment , Toyota and
Honda
ƒ Skin Panel approvals obtained form Hyundai & Ford
Tata Shaktee
ƒ 40% increase in price premium over Fy07
ƒ Higher sales of wider & highly profitable products (80% in
FY08 compared to 69% in FY07)
15
 Operational Performance

Ton/ ton of Saleable steel Coke and Fuel Rate

Kg/thm Consumption
Raw Material
600 580 581
4
Consumption

3.24 90 84
3.08
3
500

490 497
400
1

0 300
Apr-Dec '06 Apr-Dec'07 Apr-Dec'06 Apr-Dec'07
16
Coke Rate Coal Injection
 Operational Performance

Kwhrl/tss Power Consumption Specific Energy Consumption

Gcal/tss
450
405 8
393 6.77
400 7 6.67

6
350
5
300
4

250 3

2
200
1

150 0
Apr-Dec'06 Apr-Dec'07 Apr-Dec'06 Apr-Dec'07
17
 Operational Performance

Kg/tcs Specific Refractories Labour Productivity

10 Consumption Tcs/man/year
9
353 364
350
8

7
5.68 5.75 300
6

5 250

4
200
3

2
150
1

0 100
Apr-Dec'06 Apr-Dec'07 Apr-Dec'06 Apr-Dec'07
18
Key Financial Highlights

PBT (Rs.Crores) EBIDTA (Rs.Crores)

7,407 6,129
6,262 5,224
Q4 127
Q4 1,669
1,575 2,164
Q3 1,582 Q3 1,882
1,747 Q2 1,882 2,120
Q2 1,594
Q1 1,416 1,903 Q1 1,659 1,845

FY07 FY08 FY07 FY08

Net debt (Rs.Crores)

Steel sales mn tons

4.79 3.50
12,862
Q4 1.26
(1,729) Q3 1.23 1.24
Q2 1.18 1.22
Q1 1.12 1.04
March 2007 December 2007 2006 2007

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 Tata Steel Limited -Key Financial Ratios

Apr-Dec'06 Category Unit Apr-Dec'07

41.96% EBITDA Margin * % 42.97%
Profitability
24.13% Net Profit Margin * % 24.41%
54.74 Earnings per Share Rs. 52.78
35.57% Shareholder Return on Equity % 20.63%
27,996 Returns Market Capitalisation Rs. Crores 68,312
1,940 EVA spread Rs. Crores 2,658
Cash Net Cash from
3,112 Rs. Crores 4,944
Generation Operating Activities
(0.19) Stability Net Debts : Equity ** Times 0.47
13 Avg Debtors Velocity No of days 11
Activity
44 Avg Inventory Turnover No of days 43
* EBITDA margin and Net Profit Margin calculated as % of Net turnover (Gross Sales + Other Income – Excise duty)
** Net Debts = Secured loans + Unsecured loans– Current Investments- Cash & Bank 20
Key Strategic Actions
- 1.8 mtpa expansion on Schedule

„ Hot trials for Sinter Plant No. 4 is in progress

„ Work on other units progressing on schedule:

† ‘H’- Blast Furnace

† Augmentation of LD-1 and LD-2 Shops

† Power System

† Raw Material Handling System and Utilities

„ Commissioning by Q1 2008-09

„ Project cost is within Budget of sanctioned cost

of Rs 4550 crore
21
 Key Strategic Actions
2.9 mtpa Expansion Plans
† Capacity Increase: HRC - 2.34 mtpa & Slab - 0.5
mtpa
†Broad facilities:
†Upgradation of existing Blast Furnaces
†Setting up of Pelletising plant
†New Steel Making shop of 2.4 mtpa
†Thin Slab Caster and Rolling Mill, 2.34
mtpa
†Contracts signed for supply of major equipments
†Civil work for LD 3 commenced
†Commissioning of 1st strand expected in Oct 2010
22
†Project Cost to complete Rs 9156 crore
 Key Strategic Actions
-Orissa Project

† 6 mtpa integrated steel making facility

†Orders for Steel Melting Shop, Blast
Furnace, Sinter Plant, Coke Plant and
Civil & Structural work placed
†Mines plan, Rapid EIA, Forest De-
reservation proposal, pre-feasibility
study, topography survey of proposed
lease area completed

23
 Key Strategic Actions
-Orissa Project

† Land Acquisition and Rehabilitation:

„50% families shifted to temporary

accommodation and 770 transit
rooms constructed
„Training to the members of
displaced families is in progress
„ Commissioning of 1st phase expected in
December’10

„ Project Cost (Phase I) Rs 15660

24
 Key Strategic Actions
-Jharkhand Project

† Land Acquisition and Rehabilitation

† Raw material acquisition

† Feasibility Study

25
 Financing Update

† Financing of the Corus Transaction of USD 14.

billion:
„ Syndication of GBP 3670 million completed
„ CARS issue of USD 875 million
„ Rights Issue of USD 2200 million
„ Foreign Issue contemplated
† Interest Spread on non-recourse : L+ 207 bps
† Bridge Loans of USD 2.90 billion repaid

26
 Corus Guidance and Performance

† 2006 Operating Profit – GBP 430 mn

† In 2007, increase in raw material, freight and

other costs off-set by price increase
† Performance improvement during 2007 –
around GBP 300 mn
„ Production Volume - up by 7%
„ Margins improvement
„ Manufacturing performance improvement

27
Corus Guidance and Performance

Corus performance in 2007

† Improvement in Safety performance 25% yoy
† Key projects on track
„ Star sign – full delivery Q1 2008
„ Port Talbot (run rate 4.7 mtpa)
„ Ijmuiden 2010 project – CR mill in April 2008
„ Engineering Steel’s turnaround
† Strong momentum on continuous
improvement program for 2008 of around GBP
300 mn
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Outlook

29
Worldwide steel demand

Finished steel demand mtpa

2,500 15%

10% 9%
2,000 8% 10%
8%
7% 7% 7%
6%
6%
1,500 5%
2%

2%
1,000 -2% 0%
China

RoW
500 -5%
Other Asia
USA
EU 27
0 -10%
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

30
Capacity utilisation
High but expected to ease
Global excess effective capacity and utilisation

350 100%

300 Utilisation
95%

250
93%

90%
200 91% 91%
Excess
88% Capacity
90%
effective 89% utilisation
capacity 150 88% (%)
(mt) 85%

84%
100 84%
83%
80%
50
79% 80% 79%
Excess effective capacity
0 75%
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Source: IISI, Corus

31
Germany Steel Service Centre Stocks – Months
Supply and Absolute Stock Tonnage

Kt Months Supply
4.4
2,800 4.2
4.0
2,600 3.8
3.6
3.4
2,400
3.2
3.0
2,200
2.8
2.6
2,000 2.4
2.2
1,800 2.0
Jun-04

Jun-05

Jun-06

Jun-07
Mar-04

Sep-04

Dec-04

Mar-05

Sep-05

Dec-05

Mar-06

Sep-06

Dec-06

Mar-07

Sep-07
Stocks in kt Stocks in months of sales
32
Selling Prices
HRC by Region – US$/t

800

600

400

200

2008 Q1
2003

2004

2005

2006

2007
UK Germany USA Asia Import China 33
Selling Prices
German HRC – €/t
550

450

350

250
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2005 2006 2007 2008
Actual/LV FC3 34
Conclusion
† Integration well on track with good progress on synergies, raw

material projects, new organisation structure

† Tata Steel performance on track, Jamshedpur expansion on

schedule

† Strong improvement in Corus performance and outlook

† Demand remains robust

† Increase in cost of raw material to be recovered through price

increase

35
Disclaimer
Statements in this presentation describing the Company’s

objectives, projections, estimates, expectations may be “forward

looking statements” within the meaning of applicable securities

laws and regulations. Actual results could differ materially from

those expressed or implied. Important factors that could make a

difference to the Company’s operations include, among others,

economic conditions affecting demand / supply and price

conditions in the domestic and overseas markets in which the

Company operates, changes in Government regulations, tax laws

and other statutes and incidental factors

36
Thank You

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