Tata Steel Group

Towards Growth & Globalisation

Analyst Meet – Mumbai

June 26, 2008

1

Agenda

Key Highlights

Performance of Indian & South East Asian

Operations

Performance of the UK & European

Operations

Financial Performance & Financing

Integration & Long Term Strategy

External Environment & Market Outlook

2

Key Highlights

Key Highlights

Group Vision Launched

Integration synergies of US $450 mn

to be exceeded

Acquisition Financing completed

Raw Material Initiatives

Strong Performance Improvement

4

Performance of Indian & South East Asian

Operations

Operating Highlights

- Indian Operations

FY08 FY07

Crude Steel Production (mt) 5.01 5.05

Specific energy consumption 6.66 6.72

(Gcal/tss)

On time in full deliveries (OTIF)(%) 77 77

Power Consumption (kwhr/tss) 388 400

Fuel Rate (kg/thm) 577 578

Labour productivity (tcs/man/yr) 370 363

6

Tata Steel – Deliveries & Turnover

3181 3108

Long Products

In „ 000 tons

1601 1686

Flat Products

Deliveries Deliveries

US$2401 mn

US$ 2168 mn

US$ 1070 mn

US$ 936 mn

7

Operating Highlights - Indian Operations

Steel Division – Jamshedpur

Cold Rolling Mill -Best ever annual saleable production of 1.54 mt

Hot Strip Mill - Best ever annual production of 3.27 mt

LD2 & Slab Caster Unit - Best ever annual production of 3.36 mt

Long New Bar Bill - Best ever performance of 0.55 mt and improved

upon its mill speed for various product categories

G BF - Best ever annual production of 2.05 mt

Highest ever usage of melting scrap at LD shop at 0.43 mt, an increase of 26.47%

Reduction in dust emission to 0.86 kg per ton, decrease by 10.42 % y-o-y

Major reasons for lower production in FY 08 (5.01 mt) as compared to FY 07

(5.05 mt)

Shutdowns related to 1.8 mt steel expansion

Outages of Blast Furnace led to lower Hot Metal availability

Refurbishment of coke oven batteries & power breakdown in Q1 FY 08

8

Operating Highlights – Indian Operations

In mn tonnes

9

STEEL DIVISION

Market share in Auto Sector

41%

43%41%

44% 41%

0

150

300

450

600

750

900

FY04 FY05 FY06 FY07 FY08

'000 Tonnes M arket Share (%)

TOTAL AUTOMOTIVE GALVANISED AUTO

CR AUTO HR AUTO

10

Continued focus on High Value Added Products

TISCONSPECIALITY WIRE RODS

(HC+LC)

TATA SHAKTEE TATA STEELIUM ( % segment )

11

Operating Highlights- Profit Centres

Bearings Division

Developed bearings for Tata Motors – Nano Project

Product Mix enrichment – 29 new bearings developed

Tubes Division

Signed up with Tata Motors for supply of critical

Tubular components for the Nano Project - Hydroformed

12

Market Initiatives in India

Introduction of TISCON Fe 500 grade was highly successful with

100% conversion of project customers from Fe 415 to Fe 500

Regional Customisation : Super Ductile Tiscon launched for

earthquake prone NE India

Segment Customisation : Retail Identity Programme (RIP)

launched

Tata Steelium launched in Sri Lanka and Tata Agrico in Dubai &

Qatar

13

Key Performance Improvements –

Indian Operations

Critical Chain Project Management ( TOC)

Reduction in duration of shutdowns in 33 projects

Savings realised $ 9.25 mn

Solution for Sales (TOC)

Pull based replenishment process with stock buffers

put in place to ensure no stock out at Distributors

Vendor Managed Inventory (VMI) offers stabilized

Savings realised $ 23.25 mn

TOC in Mining

Improving quality of ore while increasing mine life at

OMQ w.r.t Alumina

Increase in raw coal production at West Bokaro using

same resources

Savings realised $ 5.5 mn

14

Key Performance Improvements –

Indian Operations

ASPIRE PROJECTS

Increase in Clean Coal yield at 13% ash at West

Bokaro

Savings $ 7.25 mn

Reduction of overall sinter return fines at G BF from

32% to 20%

Savings $ 3.32 mn

Improvement in gross yield of New Bar Mill

Savings $ 0.68 mn

In addition to the above ~ 270 projects were

implemented in FY 08 which are expected to

result in savings of $ 49.75 mn

15

Market Share of Branded Products

USD mn

Sale of Branded Products

16

New Projects commissioned

H Blast Furnace – “Blown in” on 31st May

2008

Capacity 2.5 mtpa

Production of 7200 t of hot metal per day with a

coke rate of 380 kg/thm and coal injection rate of

160 kg/thm

Energy recovery from the BF Gas through an

expansion turbine (TRT)

3rd Billet Caster scheduled to be commissioned

by Aug‟08 at LD1

17

Operating Highlights South East Asian Operations – NatSteel Asia

18

Finished Steel Production

Record annual billet production

in Singapore at 0.75mt

Record annual Bar/Wire Rod

production in Singapore at 0.74 mt

Increase in sales of 12.90% y-o-y at

2.5 mt in FY 08

TOP initiative at Singapore resulted

in savings of US$ 11.2 mn in FY 08

Mn tonnes

1.75

0.41

1.68

0.29

ANNUAL Q4

FY 2007-08 FY 2006-07

Mn tonnes

Operating Highlights South East Asian Operations – Tata Steel Thailand

19

Finished Steel Production Increase of 26% in annual liquid

steel production at 1.39 mt

Increase of 21% in annual finished

Steel production at 1.38 mt

Increase of 29% in sales volume

over FY 07 at 1.43 mt

New Products launched include SD 50

High Tensile and Cut & Bend rebars,

Tyre Bead wire rods and RB26

electrode quality wire rods

1.40

0.36

1.14

0.33

ANNUAL Q4

FY 2007-08 FY 2006-07

Mn tonnes

Cost reduction

TOP initiative : US $11 mn savings identified

Energy consumption has decreased by 9% in

Singapore, Vietnam and Xiamen

Oxygen Lancing Project to reduce power. US $

1.5 Mn benefit

Key Performance Improvements

– South East Asian Operations

Productivity improvement

Maximized production volumes by 21% in Tata Steel

Thailand

Increased hot charging from 66% to 80%.

Decreased sectional changes.

20

Containerized scrap : Benefit : 2.7 $ Mn

Better quality of scrap at lower prices

Billet sourcing increased in Xiamen : From

Transactional to Relationship with 2-3 suppliers

Supplier confidence has increased with stability

of supply

Integrated sourcing of ferro-alloy, graphite, coke

Strategic procurement

Improvement in service charges by 5$-10$/ton

Reduction in Inventory days

Project sales contracts reduced from 18 months to less

than 12 months to capture higher price realisation

Revenue maximization

Key Performance Improvements

– South East Asian Operations

21

CSR Highlights

Improve the economic and social status

of the community

Sustainable livelihood

Land & Water Management

Rural Enterprise Development

Vocational Training

Health & Environment

Conduct HIV/AIDS Awareness Programs

Maternal & Child Health Care Programs

Lifeline Express

Educative & Affirmative action

Early child education centre

Camp School

Adult Literacy

Financial assistance to SC/ST

Our CSR covers over 800 villages in Jharkhand,

Orissa & Chattisgarh and touches the lives of over

8 lakh people

22

Performance of Tata Steel UK (Corus)

Operating Highlights – Tata Steel UK (Corus)

2007-08 2006

Liquid Steel production(mt) 20.3 18.8

Deliveries (mt) 23.1 21.6

On time in full deliveries (OTIF)(%) 84 85

Energy consumption (GJ/t) 17.6 18.1

Environment -CO2 Emissions (t/tls) 1.84 1.85

Safety - Lost Time Injury Freq.(LTIF) 1.8 2.5

(per mn hrs worked)

2006 figures used for comparison as that is the last full financial year for Corus 24

Tata Steel UK – Operating Bridge

25

820

1553592 98

100

600

1100

1600

FY 07 Price Cost Volume

& Sales

Mix

Other FY 08

Net Price/Cost =43

US $ mn

25

Performance Improvements year on year movement – US$mn

2008 - 09

>600

2007-08

576

2006

376

26

Target

Performance Improvements

Strip Products

“ Project 2010” at Ijmuiden

Ijmuiden production at 7.5mt, target of 8mt

Port Talbot production at 4.4mt, target 5mt

Port Talbot BOS Gas Recovery Project

Volume Growth at Colors

27

“Project 2010” at Ijmuiden on schedule

Strategy 2010 comprises of several projects

which include

Galvanising line No.3

Capacity expansion +530ktpa expected to be

commissioned by Nov 2008

Cold Mill 22

Capacity expansion +800ktpa expected to be

commissioned by June 2008

Heavy bending Hot Strip Mill 2

Capacity expansion 170ktpa expected to be

commissioned in April 2009

Ladle Furnace BOS plant

Capacity expansion +260ktpa expected to be

commissioned in Aug 2009

28

New Initiatives 2008-09 - Product Launches

Strip Products:

Advanced High Strength Steels

DP600

DP800

Hot Rolled Steel Substrate – Ympress S700

Organic Coating – HPS200 Ultra

Metallic Coating – Magizinc

Ymagine

Ymvit

29

Magizinc

Performance Improvements

Long Products

Project “Starsign” at Scunthorpe

Scunthorpe production at 4.2mt, target of

4.5mt

Corus Engineering Steels - Restructuring

benefits through de-bottlenecking and

development

Scunthorpe – selective selling of premium rods

& UK sections

CI supported improvements in volume and

manufacturing

30

Long Products – Major Capex Initiative £153m

“Starsign” – already commissioned in FY 08

Sections: increased capacity, product quality

(tolerances) and flexibility

Rods: Developing the Rod Mill & MSM to enhance

rolling capability, flexibility and quality of premium

quality rod for tyre cord

Rail: Establishing a world class rail production facility at

the existing MSM and an on-site service centre to improve

customer service and offer rail lengths up to 120 m

Structural sections for T5

31

Long Products:

Long Rails 120mm

Rod Freecutting Steels

Engineering Steels for drill collar sector

Pipeplate for sour applications

Interstitial free steel for safety critical

EH46 plate grade for Aircraft Carrier contract

32

New Initiatives 2008-09 - Product Launches

Performance Improvements

Distribution & Building Systems

Mainland European volumes increase at

Maastricht, Blume shipyard plate, Namascor

packaging line

UK initiatives - Integration with upstream

Kalzip installer network and focus on Middle

East & India

33

Kalzip® Solar Systems

Corporate Responsibility Health, Safety and Environment

Health & Safety

Remains our first priority with a 3-year plan launched in

February 2008, supported by local initiatives

Our LTIF has fallen year-on-year since 2000 and is

now at 1.8

Environment

We have a climate change vision and strategy - goal is to

reduce CO2 emissions by at least 20% by 2020 compared

to 1990

investing £60m in a BOS gas recovery scheme at Port

Talbot to reduce annual CO2 emissions by 279,000 tonnes

Other initiatives to reduce particulate emissions include a

$18 million dust control project at C&I in Scunthorpe

We have launched a climate change communication campaign to

create employee awareness

Developing innovative products to help reduce our customers CO2

emissions - e.g. advanced high strength steel, carbon neutral

housing, products for renewable energy market etc

LT

IF

34

0.000

0.500

1.000

1.500

2.000

2.500

200

5

200

6

CO2

Emissions

Financial Performance & Financing

Tata Steel Standalone

FY08 FY07 Change %

Deliveries ( mt) 4.78 4.79 (0.2%)

Turnover 5,005 4,494 11%

EBIDTA 2,139 1,851 16%

EBIDTA margin 43% 41% 2%

US $ mn

36

Tata Steel PBT bridge (Figs in US $ mn)

Financial numbers are as per Indian GAAP.

37

Tata Steel UK ( Corus)

Financial Performance

FY08 FY 07

Deliveries (mt) 23.08 21.55

Turnover 23,935 20,919

EBIDTA 2,190 1,553

EBIDTA margin 9% 7%

US $ mn

38

The nos. are in IFRS

Consolidated Financial Performance

2007 - 08 Tata

Steel

TSUK

(Corus)

NSA TSTH Tata Steel

Group

(*)

Deliveries (mt ) 4.78 23.08 2.49 1.43 31.99

Turnover 5,005 25,098 1,915 1,020 33,011

EBIDTA 2,139 2,274 57 126 4,640

EBIDTA margin 43% 9% 3% 12% 14%

PBT 4,091

PBT margin 12%

PAT 3,086

PAT margin 9%

ROIC ( pretax ) 19 %

Fully Diluted EPS 4.07

(*) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group

US $ mn

39

NatSteel Asia Group Financial Performance

FY08 FY07 Change %

Deliveries (mt) 2.49 2.21 13%

Turnover 1,915 1,100 74%

EBIDTA 57 49 16%

EBIDTA margin 3% 4% (1%)

US $ mn

40

Tata Steel Thailand Financial Performance

FY08 FY07 Change %

Deliveries (mt) 1.43 1.12 27%

Turnover 1,020 646 58%

EBIDTA 126 72 75%

EBIDTA margin 12% 11% 1%

US $ mn

41

Key Group Ratios

FY08 FY07 Change %

EBIDTA Margin 14.08 % 31.14 % (54.78 %)

Asset Turnover 108.61 % 77.02 % 41 %

ROIC (pretax) 19.1 % 42 % 36 %

EPS ( Diluted)-INR 162.96 64.66 152 %

Net Debt / Equity 1.36 0.71 91.55%

42

Funding for the acquisition

Group raised USD 10 billion in 2007

Cash from TSL

US$1.09 bnLong Term Debt

US$ 1.66 bn

Term Debt in

Corus

US$ 6.21 bn

Cash from TSL

US$1.96 bn

Long Term Debt

US$ 2.29 bn

Ap

ril

2,

2007

Cu

rren

t

Equity/Quasi

Equity in TSL

US$ 3.21 bn

All Bridge funding for the

acquisition has now been termed

out/ repaid

USD Bn Tenor Cost p.a.

a.

Total Own Cash

Contribution from TSL 1.96 - -

b.

ECB Proceeds (drawn

between April‟06 and

Jan‟07) 1.68 5.61 Yrs L+0.45%

c.

Long term Rupee

Loan 0.61 5.5 Yrs 10.5%

d. CARS Proceeds 0.875 5 Yrs 1%

e.

Rights and CCPS

Issue 2.34 - -

f.

Non-Recourse

Leveraged Debt 6.21 4.93 Yrs L+2.07%

43

Bridge Funding for

Acquisition

US$10.56 bn

Financing focus for the future

Strong Internal Generation through Continuous

Improvement, Working Capital Management &

Synergies

Sustenance capex and Brownfield expansion

financed through Internal Generation

Raise Structured Equity for Greenfield Projects in the

next 18 months

Re-organise Group Structure to unlock value in the

next 6 – 12 months for planned growth in raw material

assets and new market entry

44

Integration & Synergies

Synergies Indentified at time of Acquisition

Synergies

Manufacturing

Increase BF productivity

Reduced coke consumption

Strengthening of CIP

Procurement

Combined buying

Rationalisation of Suppliers

Financing & Corporate

Restructuring of organisation

Refinancing

46

11 %

57 %

32 %

US $450 mnTotal

Integration Process

Strategic & Integration Committee (SIC) Review

Focused integration teams setup in manufacturing

departments of both entities

Integration Program Office setup

Synergy implementation review undertaken by business

heads periodically

Engagement of external auditors to review the process for

identifying benefits

47

Long Term Strategy

Long Term Strategy

Strong Base in India

Primary steel making in countries rich in Iron Ore

and / or Coal / Gas

Overseas acquisitions in growing & mature markets

Ownership of strategic raw materials

More from Steel and Branding

Control over Logistics

Participation in Alternate Technology

World Class Organization / Structure

• Multi Location

• Rank 6th in the

world

• Strong Brands

• Raw Material

security 22%

• 24 MTPA

• Dominant in

selected

domestic

markets

2008

• Global company

• Dominant in 4

continents

• Amongst top 3

• Auto &

Packaging &

Construction led.

• > 50 MTPA

capacity

• De-integrated

production

• EVA +

2015

49

Coal Project - Mozambique

35% JV stake with Riversdale

Mining Ltd. in 25000 hectares

Benga and Tete Tenement in

Moatize region

Inferred coal resource ~ 1.94

billion tonnes in Benga Tenement

Offtake Agreement for 40% of

coking coal on commercial terms.

Feasibility study & discussions on

logistics with Govt of Mozambique

underway

Production expected to commence

from 2010

Riversdale

50

Iron Ore Project - Ivory Coast

JV with State owned company

Sodemi for exploring & developing

Mt Nimba iron ore mine

75% stake in JV company Tata

Steel Cote d‟Ivoire S.A.

Resource : > 750 mn tonnes of

Itabirite Iron ore

Issue of Exploration license to

SODEMI being considered by

Ministry

Project envisages exploration &

mine development at Nimba.

51

Limestone Project – Oman

Entered into 70:30 JV with Al Bahja

Group by participating in its existing

mining company, Al Rimal Mining LLC

Scope of JV : Mining of metallurgical

grade limestone from Uyun Mine in

Salalah, in Southern Oman

Estimated resource of ~ greater than

250 mn tonnes

Feasibility study & exploration to

commence

52

Growth Strategy – New Projects

2.9 mtpa expansion at Jamshedpur

6.0 mtpa greenfield project at Orissa

0.5 MTPA Mini Blast Furnace Project at

Thailand

53

2.9 mtpa expansion - Jamshedpur

Capacity Increase : HRC – 2.34 mtpa & Slab

– 0.5 mtpa

Broad Facilities :

Upgradation of existing Blast Furnaces

Thin Slab Casting & Rolling Mill , 2.34 mtpa

Setting up a Pelletising Plant, 6mtpa

Contracts signed for supply of major

equipments

Civil work for LD 3 commenced

Commissioning of 1st strand in Oct 2010

The project is on schedule

54

Orissa Project - Kalinganagar

6 mtpa integrated steel making facility to be

completed in two phases of 3mtpa each

Orders placed for Steel Melting Shop, Blast

Furnace, Sinter Plant, Coke Plant and structural

drawings for over 22,000 t have been released

for fabrication

Orders for Hot Strip Mill, Raw Material Handling

System, Water System, Oxygen Plant (on BOO

basis) in advanced stages of negotiation

Mines plan, Rapid EIA, Forest De-reservation

proposal, pre-feasibility study, topography

survey of proposed lease area completed

55

Thailand - 0.5 mtpa Mini Blast Furnace Project

Tentative completion Sep 2009

Signed contract for machinery supply and

contractor employment with Huatian

Engineering & Technology Corpn.

Entitlement of tax incentives from Board

of Investments, Thailand

56