investor presentation1 aug 2012

TATA STEEL LIMITED August, 2012

Investor Presentation

Agenda

Overview of Tata Steel Group

Performance of Indian & South East Asian Operations

Performance of European Operations

Group Strategy

Group Financial Performance

Business Outlook

2

Tata Group - “Leadership with Trust”

ENGINEERING MATERIALS ENERGY CHEMICALS CONSUMER PRODUCTS SERVICES COMMUNICATION

AND INFO SYSTEMS

One of the world’s largest steel companies globally

with 27.2 mtpa of steel production capacity

Principally engaged in providing information

technology (IT) and IT enabled services

Engaged in generation, transmission and distribution of

electrical energy and manufacture of electronic

equipment

Substantial presence in India and also owns Jaguar

and Land Rover premium passenger vehicles brands

Largest automobile manufacturer by revenue in India

Leading Conglomerate with an Established Global Presence

ACTIVITY PROMOTER COMPANIES OWNERSHIP

Promotes Group entry

into New Businesses

Tata Sons Shareholding in Major

Operating Companies

Investment activity to

facilitate realization of

Operating Companies’

strategic objectives

13% Tata Group

Companies

18% Other Corporate

Shareholders

3% Individuals

51% Other Tata Group

Companies

Tata Industries 49% Tata Sons

66% Indian Trusts

GROUP STRUCTURE

Set up in 1868 by Mr. Jamsetji Tata, Tata Sons is a

privately held holding company for all key companies of

the Tata Group

Tata Sons is majority owned by philanthropic trusts

endowed by members of the founder family

Setup in 1945 as a managing agency for businesses

promoted by Tata Sons

In the early 1980s, Tata Industries’ mandate was recast

to promote the Group's entry into new and high-tech

areas

1 As of Nov 3, 2010

3

Tata Steel Group: Diversified global steel producer

The world’s top 12th steel company

and the world’s 2nd most geographically

diversified steel producer

Crude steel capacity of 27 MT

A balance global presence in over 50

markets and manufacturing operations

(incl. downstream) in 26 countries

An employee strength over 81,000

across 5 continents

Group Turnover *:US$ 26.13 bn

Group EBITDA*: US$ 2.66 bn

Group Profit After Tax*: US$ 1.01 bn

Western

Europe

India SE Asia

South Africa

CIS

Turkey

Scandinavia

Japan

China

CEE

Western

Africa

Ivory Coast

(iron ore) Mozambique

(coal)

Oman

(limestone)

Orissa

Steel making operations

Distribution and Commercial Centres including

downstream assets

Mining assets & projects

North America

Latin America Australia

(coal)

NML, Canada

(iron ore)

* Figures for FY’12 where 1 USD = 50.87 INR Uniquely positioned steel maker with presence in developed

and developing markets

4

Tata Steel Group: Global production hubs & diverse product mix

Thrust on High–End Value Added Steel

Distribution centres

Two production hubs

Capacity: 10.7 mtpa


One production hub

Capacity: 7.2 mtpa



One production hub

Capacity: 6.8 mtpa


Three production hubs

Capacity: 1.2 mt (finishing capacity 1.7mtpa)


One production hub

Capacity: 0.7mtpa

2 mtpa finishing capacity in 7 countries


Netherlands

India

Thailand

Singapore and

South-East Asia

Construction

Structural Steel Tubes

for Frames

Automotive Packaging

US

UK

EU (ex UK)

Flooring

Roofing

Walls

Tyre Cord

Body and

Closures

Forming

Seats

Personal

Care

Drink

Industrial

and Paint

5

6

Deliveries Turnover US$ mn

EBITDA# PAT*

Conversion Rate INR/USD – 50.87; #EBITDA excludes one-off gains from sale of investments; * PAT after Minority Interest and Share of Associates

Mn T

US$ mn US$ mn

0.0010.00 10,000 2,000

Group Financial Highlights Financial Year Ended 31st March’12

Recommended Dividend for FY12 –

Rs.12 per share

5.90 6.05

6.06 6.12

5.90 5.84

6.65 6.22

FY11 FY12

Q2 Q2

Q1 Q1

Q3 Q3

Q4 Q4

24.50 24.22

5346 6487

5631 6447

5718 6507

6649 6683

FY11 FY12

Q2 Q2

Q1 Q1

Q3 Q3

Q4 Q4

23344 26125

894 1005

848 586

683 398

940

672

FY11 FY12

Q2 Q2

Q1 Q1

Q3 Q3

Q4

Q4

3365

2660

359

1,051 389

42 197

(118)

821 85

FY11 FY12

Q2

Q2

Q1

Q1

Q3

Q3

Q4 Q4

1766 1060

Agenda




Group Strategy


Business Outlook

7

Performance of Tata Steel India First Quarter Ended 30th June, 2012

Conversion Rate USDINR – 55.625

8

1.75

1.77

1.74

Q1 FY12 Q4 FY12 Q1 FY13

Production (MT)

1,413

1,704 1,601

Q1 FY12 Q4 FY12 Q1 FY13

Turnover (US$ Mn)

1.59

1.77

1.59

Q1 FY12 Q4 FY12 Q1 FY13

Deliveries (MT)

567 535

502

Q1 FY12 Q4 FY12 Q1 FY13

EBITDA (US$ Mn)

Performance of Tata Steel India Longs, Flats and FAMD

Energy outage affected production

resulting in lower Flat and Long Products

deliveries in Q1FY’13

Improved demand and depreciating rupee

led to higher export realisation in FAMD

9

712 769 690

635 693

737

Q1 FY12 Q4 FY12 Q1 FY13

Long Products sales (in kt) Net Realizations (in US$/tonne)

882

999 896

697 712 726

Q1 FY12 Q4 FY12 Q1 FY13

Flat Products sales (in kt) Net realizations (in US$/tonne)

Long Products Flat Products

Ferro Alloys and Mineral Division (FAMD)

306 426

311

1,138 1,095 1,198

27 23

34

0

10

20

30

40

50

60

0

200

400

600

800

1000

1200

1400

Q1 FY12 Q4 FY12 Q1 FY13

FAMD Deliveries ('000 t) FeCr NR (US$ /t) FAMD Operating Profit ( US$ Mn) - rhs


Tata Steel India: Business Overview

UPSTREAM UPSTREAM FP DOWNSTREAM LP DOWNSTREAM

LP & FP DOWNSTREAM

PROFIT CENTRE FLATS LONGS TUBES WIRES AGRICO

Products Hot Rolled , Cold Rolled & Coated

Re-bars & Wire Rods

Conveyance, Structual (Hollow sections) & Precision Tubes,

Tyre Bead, Spring Steel, LRPC Strand, GI, ACSR, MS & Binding wire

Traditional & Mechanized Agri

Implements,

Hand Tools/Files

Turnover (Billion $) 3.5 2.07 0.42 0.30 0.04

Sales (MTPA) (Mn No*) 3.74 2.9 0.37 0.28 12*

Dom. Sales (%) 96% 95% 100% 96% 90 %

Branded play(%) 29%

4 Brands

32%

3 Brands

65%

3 Brands

45%

1 Brand

90%

1 Brands

Brands

TSL Subsidiaries for downstream products : - TCIL: Tinplate; TBSL: Colour coated; TSPDL: Service Centers

10

Performance of South East Asia First Quarter Ended 30th June, 2012

11


0.74 0.69

0.63

Q1 FY12 Q4 FY12 Q1 FY13

Production (MT)

0.78 0.73 0.72

Q1 FY12 Q4 FY12 Q1 FY13

Deliveries (MT)

16

19 17

Q1 FY12 Q4 FY12 Q1 FY13

EBITDA (US$ Mn)

599

567

606

Q1 FY12 Q4 FY12 Q1 FY13

Turnover (US$ Mn)

Project initiated to improve the reliability in domestic scrap collection and optimization of blending

in various grades to help in reducing the total billet cost

New product development - introduced special bar quality products and high end wire rods in the

Thailand market

Introduced “TISCON” brand internationally

Production planning model implemented to enhance contribution by adjusting the product mix and

optimizing productivity

Upgradation of melt shop shaft furnace and bar mill line to result in both productivity enhancement

and power cost savings

Strengthening the downstream reinforcement business by increasing its volumes in value added

products from the current 65% to 80% of overall sales.

Initiatives taken to cut costs, improve manpower productivity and identify alternate sources of input

feed

Increase in production capacity in Vietnam from 120 ktpa to 200 ktpa

NatSteel Holdings

Tata Steel Thailand

South-East Asia Update

12

Agenda




Group Strategy


Business Outlook

13

Performance of Tata Steel Europe First Quarter Ended 30th June, 2012

14


3.81

3.30 3.53

Q1 FY12 Q4 FY12 Q1 FY13

Production (MT)

3.55 3.55 3.21

Q1 FY12 Q4 FY12 Q1 FY13

Deliveries (MT)

343

26

111

Q1 FY12 Q4 FY12 Q1 FY13

EBITDA (US$ Mn)

3,692 3,582 3,669

Q1 FY12 Q4 FY12 Q1 FY13

Turnover (US$ Mn)

Tata Steel Europe

Challenges Faced in FY12

Market Operational performance Cost / Price Squeeze

Continuing Eurozone

crisis deflated European

steel demand after recovery

in Jan - June

Limited restocking on

concerns about spot pricing

Operational Performance

below plan

Production issues primarily

at Strip Products UK blast

furnaces

Raw material cost / price

squeeze got to extreme

heights in Q3 FY12

15

Tata Steel Europe – Comprehensive Strategy

To be

the long term

preferred partner in

our chosen

markets by

unlocking the

potential of

steel

Investments to improve product mix and service offering:

Rail: 108m Rail Hayange

Aerospace: vacuum arc remelting furnaces and specialist

testing equipment

Automotive: new tubes manufacturing and processing facility

& new zincpot for Magizinc Automotive

Achievements:

Lifting & Excavating: JCB award for

Supplier Performance Award 2012

• Opening of Thermal Technology Centre

• Reinvigorisation of the process for New

Products Development

• Automotive: new press-hardened zinc-coated

boron steel sheet, called ZnX®

• Aerospace: Laboratory approval(GE-S-400)

from leading aircraft engine manufacturer

General Electric (GE) Aviation

Energy & Power: Major contract (> £100

million) to provide pipe for gas pipeline

48000 tonnes of steel pipe for an oil

pipeline in the Gulf of Mexico.

25000 tonnes supply of profiled plate

for Siemens Wind Power

Restructuring Long Products

Investments: Dust filter IJmuiden

Tata Kids of Steel

Tata Steel Academy

• BF 4 rebuild at Port Talbot

• Supply Chain Transformation

• Upgrade hot strip mill IJmuiden

• Dalzell heavy plate press

• Mid campaign repair BF 5 furnace during

• Optimisation programme

IJmuiden:Quality – Reliability

– Cost

March / April ensuring readiness for short

term one furnace operation in 2012

Optimise footprint in Europe:

• Llanwern Hot Mill mothball in Q3

• Tubes reorganisation in Q4

• Kalzip restructure in Q4

• Tata Steel International restructuring in Q4

• Construction Products closure in Q2

• Upgraded PL22 restart

../../../a549931/Local Settings/Temporary Internet Files/Temporary Internet Files/OLK20/00_Final_Presentations/04_Mission_Building_Blocks.ppt

Tata Steel Europe - Blast Furnace Rebuild at Port Talbot

17

Campaign life of at least 20 years, taking best available

technology from within the group and from leading

international technology suppliers

An additional 500kt productivity to 2.5mtpa, with

increased inner volume and hearth diameter, and

productivity index among the best in Europe

New centralised electrical control system, to replace all

obsolete equipment

New gas cleaning plant, incorporating a cyclone to

improve primary dust collection and containment

New hot-blast stoves to further improve productivity (and

reduce emissions)

Variable speed drives to reduce energy usage

The project addresses many of the key areas identified

by the Environment Agency as sources of particulates

around the site

12.5

+36%

Commodity

Differentiated

2015/1

6

17.0

2009/1

0

Sales volume (mt)

Bi-steel defence and security system

welded plate composite for blast

protections

Slimdek construction flooring

system

steel/concrete composite

MagiZinc

zinc/magnesium coating for enhanced

corrosion protection in buildings and

automotives

Speciality Steels for Aerospace

undercarriages, engines

Celsius® Tubes

unique product range for flagship buildings

e.g. stadia

Colorcoat HPS200 Ultra®

Prepainted steel for building

Cladding

Global brand leader.

TSE can leverage on its leading market position in

downstream products:

The leading supplier for tube products in Europe

Packaging: #1 in UK, #2 in Europe

Colors: #1 in UK and Europe

Plated Steel for Battery: #1 Globally

Automotive Products

TSE recently launched a new automotive

product (CP800) in Oct 2011. TSE has

been awarded for supply of CP800 for the

new Mercedes S class

Tata Steel Europe - Margin Improvement Focus on Change in Product Mix Towards Higher Margin

Products

Tata Steel Europe – An Update

• Selling price recovery not sustained in the latter part of Q1 FY13, reflecting

confidence concerns caused by European sovereign debt crisis

• Positive cost/price impact leading to increased EBITDA between Q4 FY12

and Q1FY13

Cost-Price

Squeeze

• Operational stability supported by £185 mn investment in BF4 rebuild at Port

Talbot

• Rebuild will improve the balance of iron and steel making capacities

• Project is making good progress with completion expected in Q3 FY13

Operational

Stability

• Upgrade of coilers at hot strip mill in IJmuiden allowing development of

heavier gauge strip products

• €12m investment in Rail France to produce longer premium rails

• Investment in IJmuiden to focus on MagiZinc® Auto coated steel for the

automotive industry

• Agreement to sell 50% stake in joint venture HKS Scrap Metals Co – a non-

core asset

Capex and

Restructuring

19

Pensions Management – European Operations

20

Figures in £ mn

Jun-11 Mar-12 Jun-12

Total Scheme Retirement Benefit Assets 16,401 17,166 16,891

Total Scheme Retirement Benefit Liabilities (16,051) (16,955) (16,853)

Net Pension Surplus (BSPS &SPH) 350 211 38

Pension Asset Composition – BSPS £ mn

0%

20%

40%

60%

80%

100%

Jun-11 Mar-12 Jun-12

28% 26% 26%

7% 7% 7%

33% 32% 33%

30% 32% 32%

2% 2% 2%

Equity Securities Real estate/property Corporate bonds Gilts Cash

Triennial Valuations:

Negotiations Ongoing

Agenda




Group Strategy


Business Outlook

21

Securing competitive advantage through our long term strategy

Indian growth story

Unique steel

operation:

Presence in

both

developed

and

developing

markets

Enhance competitiveness through

continuous improvement

Raw material investment

Value addition through downstream push

Control over logistics

22

TSCR

The project is being set up for commercial

production – Ramp up in progress

Trial production started in Noamundi mines

and integrated trials completed in Joda

Production started in Oxygen plant

Coke Oven Battery# 10 expected to be

ready by end FY13

Additional HRC production in FY13– 1 mtpa

and full ramp up in FY 14

2 mtpa of HRC will be used for our

downstream businesses on achievement of

full capacity

Pellet Plant

TSCR

3 MTPA Expansion at Jamshedpur

23

Steel Production Process

BF – BOF – HSM – CRM

To be implemented in two modules

Module I - 3 Mtpa capacity by 2014

Module II - 3 Mtpa capacity by 2016 (i.e. 18-24

months from commissioning of Module 1)

Estimated Project Cost: Around INR 345 bn

Resettlement & Rehabilitation

All land required for setting up the plant has been

acquired

Clearances & Approvals – Already Obtained

State Pollution Control Board, Odisha

Ministry of Environment & Forests

Water Drawal and Right of Way

Construction Power from State Grid

Railway Corridor and Siding

Orders Placed for equipments in excess of INR140 bn

Expenditure by Tata Steel Limited up to Mar 2012 was

INR 37 bn

Overall project Debt: Equity targeted at 65:35

Financial Closure targeted by H1 FY 13

Greenfield Expansion at Odisha

24

Raw Material Security

Australia Mozambique Canada South Africa Ivory Coast

JV CDJV (Carborough Downs Joint Venture)

Rio Tinto Benga (Mauritius) Limited (RTBML)

DSO Project IDC & BEE TSCI

JV Partner JFE (5%), Posco(5%) and Vale (85%)

Rio Mauritius Ltd. New Millennium IDC (10%), BEE (26%)

Sodemi (15%); Government 10%

Tata Steel stake 5% 35% 27.1% 64% 75%

Off-take contract Yes Yes Yes Yes Yes

Product Coal Coal Iron ore Iron-ore Iron ore

Quantity as per Off-take

20% 40% 100% 74% 100%

Rated Capacity/ Production start

1.8mtpa/ Existing

5.3mtpa going up to 10.6 mtpa/ Q1 FY2013

6mtpa/ Q4 FY 2013

2 mtpa/ 2012 Feasibility to be completed by FY2013

Location

25

Strategic Value Add : Downstream businesses in India

Tata Steel

Processing &

Distribution

Ltd (100%)

Value added services like slitting, cut to length, pickling, roll forming, rebar processing etc.

5 processing units and 15 sales locations across India with a processing capacity of 2.5 mtpa

Roll Forming and Stretch Bending to make high precision automotive components for auto majors

High-end plate fabrication for major equipment manufacturers including Caterpillar and JBP Group

26

Tata Bluescope A 50:50 JV with Bluescope Steel – manufacturing building products & solutions from metal &

color coated steel

3 facilities with a total capacity of 136 ktpa to cater to the Indian construction industry

Presently implementing a greenfield project for metal coating (250 ktpa) and color coating

(150 ktpa) facilities at Jamshedpur, to be operational in 2011

Tinplate Company

Largest Indian producer of tin coated and tin free steel sheets with 35-40% market share

Makes various grades of electrolytic tinplates, tin-free steel sheets and Full Hard Cold Rolled

Sheets used for metal packaging

Expansion of cold rolling capacity is expected to be completed in 2011 (total capacity of the plant

to reach 379 ktpa)

Wires Division

Steelworks facility in Tarapur and wire drawing plants at Indore and Bengaluru

Products include springs, pre-stressed concrete and conductors

Customers include the construction and automotive segments

26

Control over logistics

Tata NYK Shipping

Dhamra Port

Dhamra Port Company Ltd (DPCL) a 50:50 JV with L&T

One of the deepest ports in India with a draft of 18 metres, capable of

accommodating capesize vessels up to 1,80,000 DWT

Phase-I of the project is complete and the commercial operations started in

May–11

The capacity is estimated to be 27 mtpa in Phase-I with two fully mechanised

berths

TM Intl Logistics(51%)

Partnership between Tata Steel, NYK and Martrade

Engaged in the business of port and terminal handling, maritime shipping,

ship agency, custom clearance and freight forwarding

27

A 50:50 JV between Tata Steel and Nippon Yusen Kabushiki Kaisha (“NYK

Line”), Japan, currently operating 12 chartered and 2 owned vessels

Focused on shipping dry bulk and break bulk cargo

27

Continuous Improvements

Improvement Initiatives – Examples:

Flat Products: Increase in slab thickness & casting speed at LD2 and reduction in scrap, lime and refractory

consumption

Long Products: Increase in billet production at New Bar Mill and retail initiatives for mix enrichment

Coke, Sinter & Iron: Increase in the height of the coal cake by 50mm at Haldia Met Coke

Raw Materials: Use of low quality domestic coal at Jharia to substitute imported hard coking coal

Shared Services: Reduction in maintenance outages at HSM generated significant savings

Savings on Improvement Initiatives Initiative Wise Break Up (FY2012)

Figures in US$ Mn

163

314 46

48

0

100

200

300

400

FY11 FY12 Cost savings Value addition

209

362 73% 123

19

29

186

5

DMAIC/SIP TOC

Marketing Initiative KVHS

Synergy

Incremental Break Up (FY2013)

60

3

21 152

10

DMAIC/ SIP TOC

Marketing Initiative KVHS

Synergy

US$ 245 mn US$ 362 mn

28

Agenda




Group Strategy


Business Outlook

29

Group Financial Performance – FY’12

30

Figures in US$ Mn unless specified

(*) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group ; Conversion Rate USDINR – 50.87

Tata Steel

India

Tata Steel

Europe

SE

Asia

Tata Steel

Group (*)

Tata Steel

Group (*)

Deliveries (Mn T) 6.63 14.02 2.95 24.22 24.50

Turnover 6,671 16,150 2,498 26,125 23,344

EBITDA 2,272 349 42 2,660 3,365

EBITDA Margin (%) 34% 2% 2% 10% 14%

EBITDA/tonne (US$) 343 25 14 110 137

Profit Before Tax 1,688 2,379

Profit After Tax & Minority Interest 1,060 1,766

FY12 FY11

FY12 FY11

Group Financial Performance – Q1 FY13

31

Figures in US $ Mn unless specified

Tata Steel

India

Tata Steel

Europe

SE

Asia

Tata Steel

Group (*)

Tata Steel

Group (*)

Deliveries (MnT) 1.59 3.21 0.72 5.68 6.05

Turnover 1,601 3,669 606 6,080 5,933

EBITDA 502 111 17 644 912

EBITDA Margin (%) 31% 3% 3% 11% 15%

EBITDA/tonne (US$) 316 35 24 113 151

Profit Before Tax 255 1,154

Profit After Tax & Minority Interest 107 961#

Q1 FY13 Q1 FY12

Q1 FY13 Q1 FY12


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

# Profit After Tax in Q1 FY’12 included profit of US$604 mn on sale of shares in Riverdale mining & TRL

Gross Debts Mar-12

Loans takenLoans repaid Reval. Impact

Gross Debts June-12

Cash & Cash Eq June 12

Net Debts June-12

Forward Covers

Underlying Net Debt

June 12

US$ mn

10768

1508

(1024)

482 11734

9711

(2023)(408)

9303

32

Net Debt Movement and Liquidity Position

Net debt movement (US$ mn)

Total Liquidity

US$3,504 mn

Liquidity position (US$ mn)


Capex incurred in Q1 FY13:

US$641mn 2023

1481

Cash and Cash Equivalents Undrawn Lines

Tata Steel Group - Financial Flexibility Monetisation of assets, highly valued portfolio of investments, strong

promoter support and healthy cash balances plus undrawn bank lines

33

Divestments since

2010 Time Amount in US$ mn

SSB Jul 2010 72

Teesside Sale Mar 2011 700

Tata Refractories Apr 2011 129

Group Holdings Partly done 345

Riversdale Jun 2011 1,100

Total 2,346

Others: A commercial settlement to all disputes relating

to the TCP off-take agreements was reached in June

2011, and TSE received an aggregate sum of US$

130mn

Demonstrated monetisation of assets

Company MV of holding

(US$ mn)

Co. Holding

(%)

Promoter

Holding (%)

Tata Motors 836.4 5.63 34.81

Titan

Industries 354.6 8.74 53.05

Tata Power

Co. 35.0 0.73 31.75

TCS Limited 0.6 73.98

Total 1226.5

•Market value as on March 31, 2012

Highly valued portfolio of group investments

Strong Promoter Support (INR bn)

7

10 11

5

17

11

5

FY08 FY09 FY10 FY11 FY12

Right Issue Inter-se Transfer CCPS Preferential Allotment of Shares and Warrants Conversion of Warrants

Key Corporate Developments

34

On 31st May’11, Tata Steel completed the transfer of a 50.84% equity stake in Tata Refractories

Limited (of its 77.46% stake) to Krosaki Harima Corporation (KHC) of Japan and received sale

proceeds of Rs.576 crores (US$129 million)

Tata Steel accepted an offer from Rio Tinto to sell the Company’s entire 26.27% stake in Riversdale

Mining Limited (RML) for A$16.50 per share for a consideration of Rs.4,942 crores (US$1,106

million)

Tata Steel has formed a joint venture with Nippon Steel Corporation (NSC) for a 600kT per annum

continuous annealing & processing line (CAPL) project to be commissioned at Jamshedpur

Tata BlueScope Steel Limited, a joint venture between Tata Steel and BlueScope Steel, started its

coated steel manufacturing facility at Bara, Jamshedpur with an annual metallic coating capacity of

250,000 tonne (including pre-painting capacity of 150,000 tonnes)

Financing Developments

35

In FY’12

US$200 million of a US$500 million JPY ECB Loan facility was prepaid in March 2012

On 20th January’12, Tata Sons exercised the option to convert 12 million warrants into ordinary

shares of the Company at a price of Rs. 594/- per share, which is at a premium of Rs. 584/- per

share

Prepaid Rs.1500 crores of syndicated rupee term loan facilities raised for the 2.9 mtpa expansion

Unsecured rupee term loan facility of Rs.2000 crores having 5-year tenor tied in March’12, and

Rs.500 crores was drawn down

Prepayment of Rs.1,000 crores of rupee term loan in September 2011

In May 2011, Company successfully launched the second tranche of its first ever offering of

Corporate Hybrid Perpetual Securities through an issue of Rs.775 crores

In Q1 FY’13

In April 2012, low coupon Non-Convertible Debentures for a tenor of 10 years worth Rs.1,500 crores

were issued on a private placement basis

Agenda




Group Strategy


Business Outlook

36

37

Business Outlook

Global steel capacity utilisation remains around 80%, implying significant

overcapacity and downward pressure on steel prices

Raw material prices are falling sharply – should help non-integrated steel

manufacturers

Steelmakers are attempting price increases, however falling raw material prices may

drag steel prices further

Chinese steel exports are on the rise as domestic demand falters

India’s domestic steel demand outlook remains soft however supply issues (mostly

with secondary manufacturers) have balanced the situation. Consumption has

increased at a healthy rate in the first quarter of the year

Sovereign debt issues and austerity measures in the Eurozone are hurting consumer

sentiment and steel demand

Thank You

38

investor presentation1 aug 2012

Documents