Results Presentation Third quarter and Nine months ended December - PowerPoint PPT Presentation

Results Presentation Third quarter and Nine months ended December 31, 2017 February 09, 2018 1 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

Tata Steel is committed towards excellence in Health and Safety LTIFR* data for Tata Steel Group Ambition:  Committed to ensuring all Tata Steel sites are sustainably fatality free on our way to ‘become the benchmark in H&S in 3.06 our industry’ Key Focus areas:  Felt Leadership programme completed for senior leaders, Union Committee Members and 80% for officers in India 2.35  Best practices for Process Safety in high hazard operations 2.10 are being deployed with cross learning between Tata Steel Europe and Tata Steel India.  Contractor Safety Management – By working with our vendor partners for last two years, 83% have now achieved a 1.31 competency level to carry out high risk jobs in Tata Steel India and SEA. Remainder will be replaced as vendors from 0.95 1st April 2018. 0.78 0.68 Key Results: 0.60 0.58 0.56  Reduction in LTI rate to 0.48 0.48 0.44 0.39  Tata Steel won overall winner prize in 48th All India Mines Rescue Competition organized by Directorate General of FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 Mines Safety .  NatSteel received National Health Award 2017 issued by Health Promotion Board, Singapore. *LTIFR is Lost Time Injury Frequency Rate 3

Focused on engaging with communities and improving quality of life CSR Spend -India (Rs. Crs) Education: Health & Sanitation: Livelihood: India 212 204  Delivered a total of ‘8’ schools  Over 1,03,000 patient footfalls  Over 441 youths were 194 u nder “30 Model School recorded at static and mobile skilled in various 171 Construction Project” in Odisha clinics, and health camps vocational trades 137 – ‘1’ school was inaugurated across locations in Jharkhand across locations and Odisha in 3QFY18 and handed over to the state  3,044 farmers government in 3QFY18  890 pregnant women benefitted from  1,847 students received Jyoti benefitted from Ante-Natal agriculture & allied Check-ups (ANC) & prenatal Fellowship in 3QFY18 which activities check-ups will support their school/college  649 farmers trained in education  Provided treatment/ FY14 FY15 FY16 FY17 9MFY18 rural and agrarian skills  1,052 villages, covered under rehabilitated to 585 leprosy at Green College the “Thousand Schools patients Kolabera, a partnership Project”, were made child with German non-profit  Operated 577 as a part of eye labour free zones by 3QFY18 - Welthungerhilfe care services every child is going to school  Constructed 831 slip-back toilets under “Open Defecation Free” drive in Jharkhand’s East and West Singhbhum districts  More than 2,000 runners took part in a Tata Steel-sponsored 10km run in South Wales to celebrate the event’s 35th year Europe  IJmuiden’s community learnt about Tata Steel’s ambitions for education, environment and innovation 4

Highlights of 3QFY18 5

Agenda Business Environment Operational Performance Financial Performance Appendix 6

Global Steel | Market update  Global economic recovery is broad based and continues to Crude steel production (mn tons) strengthen CY2016 CY2017 1,691  Global steel demand-supply position is favourable; capacity 1,606 closures in China have helped improvement in mainstream steel 860 832 819 787 producers’ utilisation levels 169 162  Chinese steel exports have reduced to an annualised level of 82 79 64mn tons in 4QCY2017  Higher quality raw material prices remained elevated driven by Chinese push for stricter environmental regulations and seasonal World China World ex China EU India factors. China steel inventory and annualized Finished steel demand growth forecast (mn tons) steel production (mn tons) Traders Inventory (RHS) CY2016 CY2017 CY2018 950 40 1,648 Steel Mills Inventory (RHS) 1,622 1,516 Annualised Crude Steel Production 850 30 882 856 835 766 766 750 20 681 162 158 164 650 10 87 92 84 550 0 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 World China World ex China EU India Source: IMF, World Steel Association, Bloomberg and HSBC Research 7

India Steel | Market update Steel production, demand and imports (mn tons) Key steel consuming sectors (% YoY) 2.6 48% Passenger Vehicles* Commercial Vehicles 30 2.7 Consumer Durables Capital goods 36% Construction 25 2.5 25.9 25.7 25.2 24.6 24.6 24.0 23.7 24% 22.4 22.0 20 21.8 2.3 21.0 20.7 20.6 20.4 12% 15 2.1 0% 1.7 1.7 10 1.9 1.9 -12% 1.8 5 1.7 1.8 1.8 -24% 0 1.5 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 Oct'17 Nov'17 Dec'17 Crude Steel Production Apparent Finished Steel Usage Imports  GDP growth improved in 2QFY17 despite hiccups from GST 1 implementation.  Auto sector continues to be strong and Capital goods sector has picked-up recently, however, Construction sector continues to face liquidity issues  Industry Capacity utilization has improved above 80% in 3QFY18; Finished steel demand grew by ~1%QoQ and 7%YoY but strong exports aid the demand supply balance.  Domestic steel prices have improved in recent months, however, remain at a discount compared to international prices. Source: Bloomberg, SIAM, CMIE, Joint plant committee, World Steel Association and Tata Steel 8 * Excludes two and three wheelers production, 1. Goods and Services Tax

Europe Steel | Market update EU market supply (mn tons, annualized) and EU sector output 1 (Jan 2008=100) imports’ share (%) 120 Deliveries Imports Import share (%) Automotive Machinery Construction 160 24% 110 120 18% 100 80 12% 90 80 40 6% 70 0 0% Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017  The Eurozone economy grew 0.6%QoQ in 4QCY17; UK economy also grew 0.5%QoQ  EU steel demand grew at 3%YoY in 4QCY2017 supported by growth across the main steel-using sectors  The market share of imports of steel remains high in the EU, at 16% in YTD Oct’2017 Source: Eurostat, Eurofer, 1. Realised output i.e. gross value added by the sector to the economy 9

South East Asia | Market update Manufacturing PMIs Industrial Production (%YoY change, 3mma) 53 20 Singapore Singapore 15 Thailand Thailand 52 10 51 5 50 0 49 -5 48 -10 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 South East Asia rebar-scrap spread (US$/tonne)  Singapore construction market remained sluggish with continued slowdown primarily in private projects. 535 518 Scrap Rebar Gap Rebar Price 445  Thailand construction sector also remained sluggish. Long 430 398 Scrap Price 358 steel consumption fell by ~25%YoY in YTD Nov’2017 due to 344 338 327 284 282 postponement of private investments and some Government 269 265 257 255 230 projects and also delay in budget disbursement. 193 175 197  South East Asia rebar spreads improved with higher steel 192 162 162 143 114 prices in domestic as well as exports market. 101 91 91 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 Source: Bloomberg and ISSB 10

Agenda Business Environment Operational Performance Financial Performance Appendix 11

Tata Steel India | Stronger than market growth Crude Steel Production Volume (mn tons) Saleable Steel Sales Volume (‘000 tons) 9,122 9.41 990 7,763 3,297 8.49 3,075 2,994 853 339 350 3.27 307 1403 3.20 3,911 3.15 1310 1350 3,241 1035 943 2,851 937 2,519 10% 520 472 1,150 1,370 399 3QFY17 3QFY18 2QFY18 9MFY17 9MFY18 3QFY17 3QFY18 2QFY18 9MFY17 9MFY18 Auto BPRS IPPE Transfers to Downstream  Crude Steel production grew by 4%YoY and 2%QoQ to 3.27 million tons in 3QFY18  Overall deliveries grew 10%YoY and 7%QoQ to 3.30 million tons with broad based growth across the verticals  Achieved the highest ever quarterly sales in Auto segment as well as BPRS segment  Achieved 2x growth in engineering segment of the IPPE segment  Wider product range enabled entry into new segments; Developed 7 new products BRPS: Branded products, Retail & Solutions, IPPE: Industrial Products, Projects & Exports 12