Results Presentation Fourth quarter and year ended March 31, 2018 - PowerPoint PPT Presentation

1 Results Presentation Fourth quarter and year ended March 31, 2018 May 16, 2018 1

Safe harbor statement Statements in this presentation describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred 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 or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors. 2

Commitment towards excellence in Health and Safety LTIFR* of Tata Steel group reduced to 0.46 ▪ Felt Leadership programme Completed for all senior leaders, union committee Reduced by 85% members, and 83% officers in India 3.06 ▪ Best practices for Process Safety Deployed in high hazard operations with cross learning 2.35 between India and Europe 2.10 ▪ Contractor Safety Management Engaging only competent vendors as per contractor safety management standard for high risk jobs 1.31 ▪ Key recent awards 0.95 o 18 awards to Tata Steel West Bokaro division at ‘60 th 0.78 Annual Mines Safety Week’ under aegis of the 0.68 0.60 0.58 0.56 Directorate General Mines Safety, India 0.46 0.44 0.39 o BIZSAFE award to Nat Steel Group by the Work Place Safety and Health Council, Singapore for FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 exemplary risk management systems *LTIFR is Lost Time Injury Frequency Rate 3

Focused on engaging with communities and improving quality of life CSR Spend India (Rs. crores) India 232 ▪ 6 Model Schools were inaugurated and handed over to Odisha 212 204 Education 194 171 Government in FY18 under ‘30 Model School Construction Project’ ▪ Supported 3,269 students for their education under ‘ Jyoti Fellowship’ ▪ 1,165 Odisha villages were made child labour free zones and reached FY14 FY15 FY16 FY17 FY18 out to 648 Jharkhand villages by intensively engaging 2,800 children under ‘Thousand Schools Project’ by end of FY18 ▪ Static and mobile clinics, and health camps – Over 4.5 Lakh patient Health & footfalls across Jharkhand and Odisha Sanitation ▪ Ante-Natal & prenatal check-ups – 6071 pregnant women benefitted ▪ Treatment/ rehabilitation of 2,106 leprosy patients ▪ Immunization of 4,223 children ▪ Constructed 3,235 household Toilets in Jharkhand and West Singhbhum districts under “Open Defecation Free” drive ▪ Training in rural and agrarian skills: 1,084 farmers trained at Green Livelihood College Kolabera in partnership with German non-profit Welthungerhilfe ▪ Skilled over 4,342 youths in various vocational trades ▪ Started first academic session in FY18 after taking over Industrial Training Institute (ITI) from government of Jharkhand Europe ▪ Sponsored an organised a ‘sleep - out’ event to raise awareness and money to combat homelessness in South Wales ▪ Tata-Kids of Steel Football event for children in Ijmuiden – a community partnership with Telstar soccer club focused on how to live a healthy lifestyle 4

Key highlights Delivering, growing and creating value Production (MT) 1 Deliveries (MT) +3.6% +5.8% 25.39 24.52 25.27 23.88 Pursuing Enhancing Kalinganagar Strong 6.83 6.26 6.49 6.40 6.43 6.56 inorganic value added plant operating growth products expansion performance opportunities portfolio starts 4Q 3Q 4Q FY18 FY17 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17 FY18 FY18 FY17 EBITDA (Rs. Crores) EBITDA per ton (Rs.) Landmark US$ 2bn +15.8% +22.3% +29.5% Creating Successful US$ 1.3bn Rights Issue +13.4% sustainable resolution of bonds to strengthen 10,231 8,836 10,228 8,725 7,132 22,045 17,025 European UK Pension offering the Balance Scheme portfolio 6,579 5,801 6,982 Sheet 4Q 3Q 4Q FY18 FY17 4Q 3Q 4Q FY18 FY17 FY18 FY18 FY17 FY18 FY18 FY17 1. Production numbers for consolidated financials are calculated using Crude steel for India, Liquid steel for Europe and Saleable steel for SEA 5

Agenda Business Environment Operational Performance Financial Performance Appendix 6

Global economic growth strengthens; steel demand continues to grow ▪ Global economic growth outlook has further strengthened despite headwinds of rising protectionism and trade war concerns, geopolitical issues and rising interest rates ▪ CY18 global steel demand is expected to grow by ~29 mn tons; Chinese steel demand to remain flat as China gradually transitions to slower economic growth GDP Growth projection (%) Finished steel demand growth forecast (in mn tons) CY2017 CY2017 1,627 1,616 1,587 CY2018F CY2018F 7.8% CY2019F 7.4% CY2019F 905 6.9% 879 6.7% 851 6.6% 6.4% 737 737 722 5.1% 4.9% 4.8% 167 166 162 3.9% 3.9% 3.8% 98 92 87 2.5% 2.4% 2.3% 2.3% 2.2% 2.0% Global China World Ex EU India World AEs EMDEs China EU India China Source: IMF, World Steel Association 7 AEs: Advanced Economies; EMDEs: Emerging Market and Developing Economies

Global steel spreads expand with favourable steel supply-demand balance China steel exports and inventory (mn tons) ▪ Chinese steel production grew by 5%YoY in Major mills Inventory Distributors Inventory Annualised exports (RHS) 40 160 Mar’18 quarter; utilization was at elevated 30 120 levels with capacity closures 20 80 10 40 ▪ Chinese steel exports declined by ~27%YoY 0 0 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 with demand recovery after a slow start post CNY ▪ Global steel prices remained buoyant; steel Global HRC Prices and gross spread 1 (US$ per ton) spreads improved with favourable demand- China HRC spot spread, gross (RHS) North Europe domestic HRC 720 400 China export HRC supply balance and recent softness in raw China domestic HRC 620 320 material prices 520 240 420 160 320 80 220 0 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Source: Bloomberg, Morgan Stanley 8 1. China HRC Export - China Weekly Hot Rolled Steel 3mm Export Price Shanghai, North Europe Domestic HRC - PLATTS TSI HRC N Europe Domestic Prod Ex-Mill, China Domestic HRC - China Domestic Hot Rolled Steel Sheet Spot Average Price, China HRC spot spreads =China HRC exports – (1.65 x Iron Ore Spot Price Index 62% + 0.7x SBB Premium Hard Coking Coal)

Indian steel prices increased with improved demand environment Steel production, demand and imports (mn tons) ▪ Acceleration in economic activities in Crude Steel Production 4QFY18 Apparent Finished Steel Usage 2.6 30 2.8 Imports 2.6 25 26.7 25.9 25.7 2.4 25.2 24.6 24.6 24.2 24.0 23.7 22.8 20 22.4 2.2 ▪ Steel demand grew by 8.2%YoY – 22.0 21.6 20.7 20.6 20.4 2.0 15 1.8 1.4 10 1.8 1.6 1.9 1.8 o Government’s continued focus on 1.8 1.7 1.7 1.4 5 1.2 infrastructure spending 0 1.0 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 o Strong growth in automotive, capital goods and consumer durables segments Key steel consuming sectors (% Change, YoY) ▪ Crude steel production increased by 36% Passenger Vehicles* Commercial Vehicles 3.7%YoY Consumer Durables Capital goods 24% Construction 12% ▪ Domestic steel prices increased with 0% improved demand; further supported by -12% -24% favourable regional price sentiments 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 Source: Bloomberg, SIAM, MOSPI, Joint plant committee, World Steel Association 9 * Excludes two and three wheelers production

Europe Steel demand grew, supported by growth across sectors ▪ Eurozone economy grew 0.4%QoQ in 1QCY18 ▪ EU steel demand have grown by 1.6%YoY in 1QCY18, supported by growth across the main steel-using sectors ▪ The market share of imports of steel remains high EU market supply (mn tons, annualized) and imports’ EU sector output 1 (Jan 2008=100) share (%) 120 Deliveries Imports Import share (%) Automotive Machinery Construction 160 24% 110 120 18% 100 80 12% 90 80 40 6% 70 0 0% Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Eurostat, Eurofer, 1. Realised output i.e. gross value added by the sector to the economy 10

SE Asia Rebar spreads declined amidst sluggish demand ▪ Long steel demand remained weak; Construction sector continues to remain sluggish in both Singapore and Thailand ▪ South East Asia rebar spreads declined due to sharp rise in scrap prices and weaker demand sentiments Construction GDP (% Change, YoY) South East Asia rebar-scrap spread (US$/tonne) Singapore Scrap Rebar Gap 25 557 550 400 Thailand Scrap Price 600 518 20 Rebar Price 350 445 500 436 15 300 398 386 358 344 10 338 400 333 250 282 269 5 257 255 200 219 300 230 185 0 150 168 162 164 200 143 -5 100 114 101 100 -10 50 0 -15 0 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Source: Bloomberg and ISSB,NESDB 11

Agenda Business Environment Operational Performance Financial Performance Appendix 12