Press Meet FY07-May

8/2/2019 Press Meet FY07-May

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Presentation on Performance of Tata Steel for FY 2006-07

Press MeetMumbai May 17, 2007

Tata Steel- Towards Growth & Globalization


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Disclaimer

Statements in this presentation describing the Companys 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 Companys 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


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Presentation Outline

Tata Steels Performance for FY 2006-07

Coruss Performance for Jan- March 2007

Financial Performance and Corus Financing

Tata Steel Corus integration update

Outlook for FY 2007-08 and Long Term Plans


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Completion of Corus Acquisition process on April 2, 2007

Conclusion of the commercial negotiations for the Acquisition Re-Financing

for Rs. 26,873 Crores (USD 6.18 billion)

Consolidation of NatSteel Asia equity holding in Xiamen, China and Vietnam

Tata Steel (Thailand) integration process completes 1 year new upstream

projects announced

Consolidated Turnover (excl Corus) up by 23% at Rs. 27,437 crores (USD 6,311

million)

Consolidated EBITDA (excl Corus) up by 20% at Rs. 7,888 crores (USD 1,815

million)

Consolidated Profit After Tax* (excl Corus) up by 12% at Rs. 4,177 crores

(USD 961 million)

Highest ever Dividend : 130% + 25%

Key highlights (FY 2006 - 07)

* Profit After Tax mean Profit after Minority Interests and share of Profit of Associates


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Steel Production up by 9% at 4.93 million tonnes

G blast furnace crossed 2 million tonnes production

Highest ever annual production at HSM (3.24 million tonnes) and CRM (1.5 million

tonnes)

West Bokaro produced 1.9 million tonnes of clean coal for the first time at 13% ash

New Bar Mill reached rated capacity of 50,000 tonne per month in March 2007

In-house up-gradation of E Blast Furnace (1,100 tonne per day to 1,500 tonne per

day) completed

Acquisition of 2 Wire Plants at Indore; Market Entry into fine springs

Several new products developed viz BH180/220 & High Tensile GA 350 Mpa etc

Commissioning of 4 Precision and 3 Commercial Tube Mill in Jamshedpur

Operational highlights in FY 2006-07


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5.55

5.05 4.934.52

4.735.18

Hot Metal Crude Steel Saleable Steel

FY 2005-06 FY 2006-07

Production In million tonnes

7% 7% 9%

Represent increase in production in FY 2006-07 vs FY2005-06

Operational highlights in FY 2006-07


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7691

511487

300

400

500

600

FY 2005-06 FY 2006-07

Coke Rate Coal Injection

Enhancing Operational Efficiency

Kg/thm

Coke and Fuel Rate ConsumptionFuel Rate (Coke rate + Injection)

3.113.31

0

1

2

3

4

FY 2005-06 FY 2006-07

Raw Material Consumption

Ton/ ton of Saleable steel

587 578

Impact : Rs. 192 Crs(USD 44 million)

Impact : Rs. 26 Crs(USD 6 million)


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Power Consumption Specific Energy Consumption

6.966.72

0

1

2

3

4

5

6

7

8

FY 2005-06 FY 2006-07

Gcal/tss

402

388

150

200

250

300

350

400

450

FY 2005-06 FY 2006-07

Kwhrl/tssImpact : Rs. 16 Crs

(USD 4 million)Impact : Rs. 74 Crs

(USD 17 million)


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Specific Refractories Consumption Labour Productivity

326363

100

150

200

250

300

350

FY 2005-06 FY 2006-07

Tcs/man/year

6.33

5.59

0

1

2

3

4

5

6

7

8

9

10

FY 2005-06 FY 2006-07

Kg/tcsImpact : Rs. 26 Crs

(USD 6 million)Impact : Rs. 27 Crs

(USD 6 million)


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Gross Steel sales up by 8% at 4.79 million tonnes

Sales to Automotive sector up by 30% at 0.86 million tonnes

Global Supplier Approval received from Honda Engg.

Services (Honda Car, Japan) for CRCA

TOC (VMI) initiated for 3 models at Tata Motors with zero

stock outs

Sales of Branded Products up by 13% at 0.99 million tonnes

Turnover of Branded Products up by 19% at Rs. 4,604 crores

(USD 1059 million) crossed USD 1 billion for the first time

Marketing highlights in FY 2006-07


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Galv, 515,

12%

Longs, 1356

, 30%

CR, 1198,

27%

Semis, 89,

2%

HR, 1260,

29%

Longs, 1,668,

35%

Galv, 487,

10%CR, 1246, 26%

Semis, 32, 1%

HR, 1361, 28%

4.79 million tonnesFY 2006-07

Increasing Steel Sales in FY 2006-07

4.42 million tonnes

FY 2005-06

Sales up 8%

Figure in 000 tonnes


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Enhancing Market Share in Automotive

CR Auto

Total AutoHR Auto

63% 53%

50%57%58%

0

80

160

240

320

400

FY03 FY04 FY05 FY06 FY07

0%

20%

40%

60%

80%

'000 Tonnes Market Share (%)

24%28%

37%

38%37%

0

100

200

300

400

500


0%

15%

30%

45%

60%

75%


Galv Auto

6%12%

38%30%

16%

0

10

20

30

40

50


0%

20%

40%


38%

43% 41%44%

36%

0

180

360

540

720

900


0%

20%

40%

60%

80%



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Speciality Wire Rods (HC+LC)

Enhancing Market Share in Focus Segments

Galvanized (Construction)

TISCON

26%27% 27%

19%

22%

0

30

60

90

120

150

180



9%

6%7%

6% 6%

0

200

400

600

800

1000



51%49% 50%

45%

49%

0

50

100

150

200

250

300

350




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1300

2365

3362

3848

4604

0

1000

2000

3000

4000

5000

'03 '04 '05 '06 '07

Enhancing Focus on Branded Products

Revenue : All Branded Products

Rs. Crores

299 544 773 1059885USD million


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296 299308 306

Prodn. Sales

FY 06 FY 07

000 tonnes

Wires

000 tonnes

Rs 30 crsUSD 6.9 mn

27.428.029.0

30.0

Prodn. Sales

FY 06 FY 07

Bearings

Million Nos. Rs 18 Crs

USD 4.1 mn

Rs 21 crs

USD 4.8 mn

1,627

1,928

1,6111,648

Prodn. Sales

FY 06 FY 07

FAMDRs 589 crsUSD 136 mn

Rs 577 crsUSD 133 mn

Rs 25 CrsUSD 5.8 mn

264258

310

303

Prodn. Sales

FY 06 FY 07

Tubes

000 tonnes

Operating Profit

Non-Steel Profit Center Operations

Rs. 41 crsUSD 9.4 mn

Rs 38 crsUSD 8.7 million


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Performance of South- East Asian Operation

Tata Steel Thailand

Finished steel production up by 18% at 1.14 million tonnes

Sales up by 16% at 1.12 million tonnes

Revenue up by 22% at USD 595 million

EBITDA at USD 67 million, Margin @ 11.2% (6.7% in FY06)

Net Profit at USD 29 million, Margin @ 4.9% (net loss @ 6.7% in FY06)

Gross debts decreased by 48% at USD 167 million as on 31st March 2007

NatSteel Group

Production up :Billet by 8% at 0.63 million tonnes, Bar / Wire Rod by 9% at 1.01

million tonnes, Wires by 18% at 0.23 million tonnes

Sales at 2.57 million tonnes, decreased by 2% due to lower trading volumes

Turnover up 8.5% and crossed USD 1 billion mark

EBITDA at USD 45 million, Margin @ 4% (6% in FY06)

Net Profit (after Minority Interest) at USD 17 million


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Coruss Performance for Jan- March 2007


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Corus Q1 2007 results (Jan-March 2007)

Preliminary un-audited results for the 3 months to 31 March 2007

Prepared under International Financial Reporting Standards as

applied by Corus at December 2006

No fair value adjustments or related items arising from the acquisition


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Key highlights (Jan-March 2007)

Underlying Operating Profit* m

75

126

168

184

61

2006 2007

EBITDA* m

Net debt m Steel Deliveries (kt) **

144254

193

235

127

2006 2007

Q1

Q3

Q4

Q1

Q3

Q4699430

Q2 Q2

2006 2007

564

5.1

5.4

5.2

5.2

5.6

2006 20072006 2007

20.9

Dec 2006 Mar 2007

Q1

Q3Q4

Q2

746

* Continuing operations. Before restructuring, impairment and disposals.

Excluding non-recurring pension credit of 96m in Q1 2006 and transaction costs of 77m in Q4 2006 and 58m in Q1 2007

** Includes Teesside slab deliveries to the consortium of 0.4mt in Q1 2006 and 0.6mt in Q1 2007


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Group income statement (Jan-March 2007)

5Restructuring, impairments & disposals (net)

6.2

Underlying EBITDA *

240EBITDA* including:

2,289Turnover

Continuing operations

Q1 2007Q1 2006IFRS million

* Before impairment, restructuring and disposals

176Group operating profit

EBITDA margin (%)

(96)Non-recurring pension credit

144

171Operating profit before restructuring,

impairments & disposals

(1)

9.4

196

125

-

254

126

2,711

-Transaction costs 58


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Group income statement (Jan-March 2007)

Joint ventures & associates

Net finance costs including:

Group operating profit

Q1 2007Q1 2006IFRS million

Profit after tax - discontinued ops.

Taxation

Profit before taxation

Profit after tax

Profit after tax - continued ops.

125176

(33)(116)

41

(19)(28)

8833

-12

8845

10761

(87)Premium to redeem 2016 debenture -

(11)Fair value of equity options on convertible bonds (8)


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Divisional performance (Jan-March 2007)

PriceVolumeRevenuesQ1 2007Gross Revenues

10%(3)%6%1,426Strip Products

10%2%12%726Long Products

8%14%24%840D&BS

19182.622D&BS

8276.346Long Products

1415013.7196Strip Products

RONA (%)**

Operating

Profit*Margin (%)EBITDA*

Growth million

* Before impairment, restructuring and disposals

** Last twelve months underlying operating profit/average net assets (excluding net debt)


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17.1

15.0

19.3

10

15

20

Total working capital % Turnover*

All operations : Working capital

Inventories m

1,858 1,890

2,012

1,500

1,750

2,000

2,250

March 2006 Dec 2006 March 2007


Trade Receivables / Payables m

Receivables Payables

1,669 1,683 1,960

-2,000

-1,000

0

1,000

2,000

mar 06 dec 06 mar 07March 2006 Dec 2006 March 2007

1,859 2,017 2,118

* Last 3 months turnover annualised

3.3

3.6 3.7

3.00

3.50

4.00

Carbon steel inventories kt


Slab stock build for IJmuiden re-line

0.5

3.8


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Financial Performance and Corus Financing

Fi i l P f T t St l Li it d


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1,4406,262Profit before Tax1,2055,240

23%23%Net Profit Margin23%23%

41%41%EBITDA Margin40%40%

9714,222Net Profit After Tax8073,506

FY 2006-07FY 2005-06

USD MillionRs.croresUSD MillionRs.crores

Dividend (incl. Tax)

EPS (Rs per share)

EBITDA

Turnover

820

63.35

6,192

17,144

189

1.46

1,424

3,944

1,104

73.76

7,407

19,763

254

1.70

1,704

4,546

Financial Performance Tata Steel Limited(FY 2006-07 vs FY 2005-06)

Note: EBITDA Margin and Net Profit Margin calculated as % of Net Turnover (Gross Sales + Other Income Excise duty)

Assumed Exchange Rate $/Rs= 43.4725 ( closing rate on 30 Mar 2007) for converting all financial figures from INR to USD

Fi i l P f T t St l Li it d


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3841,669Profit before Tax2741,189

22%22%Net Profit Margin19%19%


2541,104Net Profit After Tax180783

Jan-March 2007Jan-March 2006

USD MillionRs. croresUSD MillionRs. crores

EPS (Rs per share)

EBITDA

Turnover

14.15

1,367

4,602

0.33

315

1,059

19.01

1,983

5,610

0.44

456

1,290

Financial Performance Tata Steel Limited(Jan-March 2007 vs Jan-March 2006)


Assumed Exchange Rate $/Rs= 43.4725 ( closing rate on 30 Mar 2007) for converting all financial figures from INR to USD.

Fi i l P f C lid t d ( l C )


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1,4526,313Profit before Tax1,2695,515


FY 2006-07FY 2005-06


EPS (Rs per share)

Net Profit (after MI &

share of profits of

Associates)

EBITDATurnover

67.62

3,735

6,59122,272

1.56

859

1,5165,123

73.06

4,177

7,88827,437

1.68

961

1,8156,311


Assumed Exchange Rate $/Rs= 43.4725 ( closing rate on 30 Mar 2007) for converting all financial figures from INR to USD

Financial Performance Consolidated (excl Corus)(FY 2006-07 vs FY 2005-06)

Fi i l P f P f C lid d i h C


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3951,717Net Profit (after MI &

share of profits ofAssociates)

2761,198


5672,464Profit before Tax4031,750

Jan-March 2007Jan-March 2006


EBITDA *

Turnover

2,672

25,411

615

5,845

4,231

31,296

973

7,199

Financial Performance Pro-forma Consolidated with Corus(Jan-March 2007 vs Jan-March 2006)

Pro-forma Consolidation of Corus with Tata Steel (arithmetic additions without making any adjustment for the differences in theIFRS and Indian GAAP) after converting all financial figures at exchange rate of GBP= Rs. 85.5452 and USD = Rs. 43.4725

( closing rate on 30 Mar 2007) for Jan-March 2007 and Jan-March 2006EBITDA Margin and Net Profit Margin calculated as % of Net Turnover (Gross Sales + Other Income Excise duty)

* Underlying EBITDA before impairment, restructuring and disposals


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Net Debts / Equity (*)

Key Financial Ratios : Tata Steel Limited

-0.12

1.07

(0.5)

0.0

0.5

1.0

1.5

2.0

'03 '04 '05 '06 '07

* Net Debts = Secured loans + Unsecured loans Cash & Cash Equivalents (incl. Investments in Mutual Funds)

413

2,707

0

500

1,000

1,500

2,000

2,500

3,000

'03 '04 '05 '06 '07

EVA Spread (Rs. Crores)

Debtors + Inventory (in no. of days sales)

53

79

0

20

40

60

80

'03 '04 '05 '06 '07

Earnings Per Share (Rs per share)

27

47

63 6374

0

25

50

75

'03 '04 '05 '06 '07


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Raising cost efficient funds for the growth plans of the

Company

To remain in the Investment grade in the Long Term

To provide financial flexibility in the Balance Sheet

Funding strategy to focus on EPS accretion

Tata Steel Financing strategy


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1,824

10,342

5,635

2,056

827

0

3,000

6,000

9,000

12,000

15,000

TataSteel

Equity

TataSteelAsia

QuasiEquity

CorusNon-

Recourse

Financing

Existingdebts

ofCorustaken

over

Enterprise

Value

US$ Million

2,044

4,100

838

2,662 6,143 846

3,409

13,751

Additional fund required for an offer of 608 pence/shareFinancing pattern for an offer of 455 pence/share

Financing pattern for an offer of 608 pence/share

Financing of Corus Acquisition

Fund required excl Corus debts

taken over USD 12,905 million

19508


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2,056

1,253

0

803

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Owncash

Borrowings

RightIsue

Equity

ForeignEquity

Offering

TotalEquity

US$ Million

464

1,267

(753)

500

1888

445

1,888 445

2,044

4,100

Additional Equity fund planned for an offer of 608 pence/shareTata Steels Equity financing pattern for an offer of 455 pence/share

Tata Steels Equity financing pattern for an offer of 608 pence/share

Financing Plan of Tata Steel Equity


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Initial vs final financing structure

Initial financing structure

USD 3.12bn term loans

A: USD 0.49bn 7 years

B: USD 1.32bn 8 years

C: USD 1.32bn 9 years

USD 0.68bn 7 year revolving credit

facility (working capital)

Secured on shares of CNBV & CUKand CUK assets

USD 2.63n High yield bond

Original syndicate led by Credit-Suisse,

ABN Amro & Deutsche

Final financing structure

USD 6.18bn term loans

A: USD 3.26bn 5 year amortisation

(incl. guarantees for interest on loan

notes of 0.04bn)

B: USD 2.93bn 7 year amortisation

(unequal minimally amortised)

USD 0.98bn 5 year revolving credit facility

(working capital: facility C)

Secured on shares of CNBV & CUK and

CUK assets

No High yield bond

New syndicate led by Citibank, ABN Amro,

Standard Chartered and other relationshipbanks

Margin Comparison between Initial and Final


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Margin Comparison between Initial and Finalfinancing structure

1.97% 1.84%1.47% 1.34%

3.72% 3.72% 3.72% 3.72%

0.0%

1.0%

2.0%

3.0%

4.0%

Total Debt/EBITDA

>3.0x

Total Debt/EBITDA

2.5x

Total Debt/EBITDA

2.0x

Total Debt/EBITDA


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Key Financing Milestones

Commercial negotiations finalised

Consultation process to seek advice from CN

Works Council being initiated

Commenced discussion with UK Pension

Trustees

Non- Recourse Financing in

Corus

Structure under finalisationFinancing at Tata Steel Asia

Ongoing under implementationEquity issuance in Tata Steel


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Tata Steel Corus integration update


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Combined Long-term Strategy Map

2005 2015

5 MTPA Dominant in

selecteddomesticmarkets

EVA +Participation in Alternate Technology

Single

Location

World class

Small in

size

Control over Logistics

More from Steel and Branding

Ownership of strategic raw materials

Primary steel making in countries rich in Iron Ore

and / or Coal / Gas

Overseas acquisitions in growing & mature

markets

Strong Base in India

World Class Organisation / Structure

> 50 MTPAcapacity

De-

integratedproduction

StrongBrands

EVA +

Multi Location Strong

regionalpresence.

Auto &Packaging &

Constructionled.

Group Ambition


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Group AmbitionTata Steel & Corus: a compelling vision in steel

Global player with a balanced presence in developed Europeanand fast growing Asian markets

Strong positions in construction, automotive and packaging

market sectors

Significant raw material security & greenfield / brownfield

developments

Lowest cost position in Europe and South East Asia

Double the size and profitability

Current : EBITDA of 13% ; 25 million tonnes : # 6

By 2012 : EBITDA of 25% : 40 million tonnes : Potential #2


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Economies of Scale, Pricing Power

2006 crude steel production (metric tonnes)

10.6

10.8

10.9

11.2

12.5

12.5

12.8

13.5

13.6

13.8

14.6

15.0

15.6

16.116.8

17.6

18.2

19.1

20.3

21.3

25.626.1

31.2

32.0

33.7118.0

0 20 40 60 80 100 120

Shougang

Laiwu

Mearshan

Jinan

Magnitogorsk

China Steel Corp

Techint

SAIL

Sumitomo Metal Industries

Wuhan

Jiangsu Shangang

Anshan

Gerdau Group

EvrazThyssenKrupp

Severstal

Riva

Tangshan

Nucor

US Steel

Tata Steel + Corus consolidatedBaosteel + Bayi Steel Group

Posco

JFE Steel

Nippon Steel

Arcelor - Mit tal

Expand scale from 7mtpa to 25mtpa and reap significant economies of scale

6th largest steel maker

globally

The merged entity wouldbecome worlds 6th largeststeel company with 25.6 mtpaof crude steel production

Create a more resilientbusiness model with astronger platform for furthergrowth

The combined entity wouldhave more efficientoperations through enhancedoptionality to optimize assetbase and material flow,

including sourcing of rawmaterials, semi-finished steel

Better equipped to faceintensifying competitionarising from consolidation in

the industry globally


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Enhanced Product Portfolio

Strong High Value Added Product Portfolio straddling Automotive andConstruction Spaces

Corus

Leading Position

Leading Position

Flat Products Long Products Value Added Products

Hot Rolled Coils/ Sheets

Hot Rolled Coils/ Sheets

Rebars

Wire Rods

Wires

Rail

Galvanized Sheets

Cold Rolled Coils / Sheets

Advanced high-strength Steel

Superior Automotive Steel

Rods for Tyre cord

Structural SectionsPackaging Steels

Tin Plate

The enlarged entity would have Tata Steels low cost and highly efficient upstream operations and theCorus value-added downstream products


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Access to New Markets

Combined entity has significant presence in both emerging and developedeconomies

India

69%

ROW

8%Asia ex

India

23%

UK

29%

North

America

10%

Asia

9%ROW

3%

Europe

49%

UK22%

North

America

8%

Asia

24%

ROW

9%

Europe

37%

Tata Steel Corus Combined Entity

Source: Tata Steel FY2005-06 Annual report and Corus 2005 Annual Report


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Enhanced Customer Reach

Access to new markets and presence across steel value chain, significantlyenhances customer reach

Tata Steel would benefit from Corus pan-European distribution network

The acquisition gels with Tata Steels stated objective of having a global distribution network

Production facilities

Projects

Distribution Centres

USA

3 production facilities


UK & Ireland

1 Production Facility

Distribution centres

Netherlands

2 Production Facilities


India

1 Production FacilityDistribution Centres

Singapore



Thailand

EU (excl UK & Netherlands)



USA


USA

3 production facilities


UK & Ireland3 production facilities


UK & Ireland



Netherlands



Netherlands



India



India


Singapore


Singapore



Thailand



Thailand






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Enhancing Competitiveness

Transfer of technology from Europe to India to develop new products and

capture growth in India and Asia allows for technology transfer and

cross-fertilization of R&D capabilities in the automotive, packaging and

construction sectors

Benefit from high growth in emerging markets and pricing stability in

developed markets

Sharing of best practices

a


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Virtual Organisation

Two legal entities but one virtual

Organisation

Common Vision & goals

Joint Business Plan

Raw Material Strategy

a


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Strong Cultural Fit

World class governance World class governance

Core values Code of ethics

Integrity

Creating Value in Steel

Customer Focus

Selective Growth

Respect for Our People

Core Values

Trusteeship

Integrity

Respect for the Individual

Credibility

Excellence

Continuous Improvement Programme The

Corus Way

Continuous Improvement Programme

ASPIRE

Long-standing relationship between Tata Steel and Corus

Tata Steel engaged Ijmuiden operations of Corus in 1992 to help it in coke making and blast

furnace facilities improvement

Strategic commercial relationship

Management at both Tata Steel and Corus highly focused on improving operating efficiency and

productivity

A common business culture


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Strategic and Integration Committee

Dr T Mukherjee P Varin

R N Tata

ChairmanTo determine the future

strategic priorities of theenlarged group

To determine the futureTo determine the future

strategic priorities of thestrategic priorities of the

enlarged groupenlarged group

Drive integration wherethere is a clear business

benefit

Drive integration whereDrive integration where

there is a clear businessthere is a clear business

benefitbenefit

Overall targets& Synergy

charters

First view ofSynergy potential& priorities

Review

Verify & draftimplementation

plans

Review

Detailed SynergyDetailed Synergy

targets to betargets to be

included inincluded in

Business Unit/siteBusiness Unit/site

plans for H2 2007 &plans for H2 2007 &

AP 2008AP 2008--20102010

AprilApril -- early May 2007early May 2007 JuneJune -- Oct 2007Oct 2007 Oct 2007Oct 2007

Strategic & Integration

Committee

Programme Office

Integration Teams

Overall targets& Synergy

charters

First view ofSynergy potential& priorities

Review

Verify & draftimplementation

plans

Review

Detailed SynergyDetailed Synergy

targets to betargets to be

included inincluded in

Business Unit/siteBusiness Unit/site

plans for H2 2007 &plans for H2 2007 &

AP 2008AP 2008--20102010

AprilApril -- early May 2007early May 2007 JuneJune -- Oct 2007Oct 2007 Oct 2007Oct 2007

Strategic & Integration

Committee

Programme Office

Integration Teams

Top down

Establish clear objectives Focus Synergy teams on what

is expected to be achieved

Bottom up

Develop Synergy teamownership of targets

Verify achievability

K Chatterjee B Muthuraman D LloydR Henstra


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Manufacturing

Best Practices sharing

Procurement

Shared services

Research, Development & Technology

Tax synergies

Financing synergies

Synergies of USD 450 million areexpected to be achieved over 3 years

Synergies have been identified and audit process initiated Management is highly confident of achieving the above target

Significant identified Synergies


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Raw Material Self-sufficiency

*Percentage of steel made through captive iron ore and coal.

80%

Tata SteelStandalone

17%

With Corus

40%

With JsrBrownfield &Orissa Project

(3 5 years)

60%- 80%

Long TermVision

Iron Ore 100% 20% 50% 60% - 80%

Coal 60% 15% 25% 60% - 80%

Security*

Steel size 5 23 34 34

Tata Steel standalone raw material security is 80% which reduces to 17% for combined

entity

In 3 - 5 years, this will reach 40% with Jamshedpur Brownfield and Orissa coming onstream

Improvement of raw material security to 60%- 80% to be done in phases


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Outlook for FY 2007-08 and Long Term Plans

Gl b l St l I d t


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Global Steel Industry

World crude steel production up by 8.8% yoy at 1,240 million tonnes in 2006 Chinas production up by 17.7% yoy at 419 million tonnes

World crude steel production up by 10.3% yoy at 318 million tonnes in Q1 2007

Global apparent steel demand up by 8.5% yoy at 1,113 million tonnes in 2006

Forecast to grow by 5.9 % at 1179 million tonnes in 2007 (65 million tonnes)

Chinese steel demand expected to grow @ 13 % in 2007 (47 million tonnes)

Indian steel demand grew by 9.9% in 2006 and is expected to grow by 10.2% in 2007

European crude steel production up 5% in Quarter 1 2007 at 53.8million tonnes

Positive European demand outlook continues

Iron Ore, freight and LME metals prices likely to remain high, partly offset by lower coal

prices in 2007

Steel Prices increased in 1Q and expected to remain at high levels in 2H in most

markets

Consolidation will gain momentum

Source : IISI

O tl k f FY 2007 08 (A M h)


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Outlook for FY 2007-08 (Apr- March)

India

Planned crude steel production increase of 0.30 million tonnes

Planned steel sales increase of 0.24 million tonnes

Ongoing cost reduction programme

South-East Asia

Tata Steel Thailand

Planned crude steel production increase of 0.27 million tonnes


NatSteel Group


Europe 5-7% price increases secured for Quarter 2

Further cost pressure, particularly iron ore, freight & LME metals partly

offset by coal and energy cost reductions

Integration process to be stepped up across the Tata Steel Group


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Summary of Progress on Major Projects

Ongoing 1.8 mtpa expansion at Jamshedpur as perschedule (June 2008)

2.9 mtpa steel capacity expansion at Jamshedpur (Flat

Products) Technical and commercial discussions with suppliers

of LD-3 and TSCR in progress

Haldia Coke Project (1.6 mtpa coke plant) as per schedule(March 2008)

Kalinganagar Steel Project, Orissa

Land lease deed executed

Final Environmental clearance for the plant received

Contracts signed for iron and steel making facilities

and slab caster


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Dhamra Port Project, Orissa Financial closure for Rupee Term Loan achieved;

financial closure for ECA funding expected by August

2007

Tata Bluescope JV

Building Solutions

Pune, Bhiwadi and Chennai plants in operation

Coated Steel Site development work nearing completion at

Jamshedpur

Expected to place orders for civil work in next 3

months

Ferro Chrome Project, South Africa ( 134,500 tpa)

Civil work of furnace as per schedule

Approval for financial incentives received from theGovernment of South Africa



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Projects in Europe

Major capex & restructuring programme underway & on

track in Quarter 1 to deliver planned improvements:

Port Talbot to 5 million tonne slab output by end 2007 130m strategic investment at Scunthorpe: 120m rail,

increase premium wire rod sales (tyre cord) &

increased section capacity & quality

153m strategic investment at IJmuiden: new cold

mill & galvanising line

Project in South East Asia

Installation of new 0.5 mtpa Blast Furnace Complex in

Tata Steel Thailand unit by October 2008


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Thank You

Documents

Press Meet FY07-May