Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Morgan Stanley India Investment Forum 2024
15 slides from Tata Steel's conference presentation, Jun 12, 2024
Slide 1: Submission of Presentation to Analysts/Investors cover letter
June 12, 2024 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001, Maharashtra, India. Mumb
Slide 2: Tata Steel - Corporate Presentation
Tata Steel - Corporate Presentation Morgan Stanley India Investment Forum 2024 June 12, 2024
Slide 3: Safe harbour statement
Safe harbour 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. Imp
Slide 4: Structural trends are reshaping global steel industry dynamics over time
Structural trends are reshaping global steel industry dynamics over time India steel remains a bright spot aided by the economic growth cycle India steel demand forecast (in mn tons) China’s transition to consumption led economic growth 120 Urbanisation Focus on Decarbonisation across sectors FY23 F
Slide 5: Tata Steel is well positioned to Grow with Purpose
Tata Steel is well positioned Scaling up in India, high growth market Leadership in Sustainability Net Zero by 2045 Transforming Leadership inUK & Netherlands India Leveraging technology & digital to create value to “Grow with Purpose” and create value Consolidate position as Robust financial health
Slide 6: Scaling up to capitalise on India growth opportunity
Scaling up to capitalise on India growth opportunity Manufacturing sites with available land bank to double capacity to 40 MTPA 62% >75% India share (%) 40 NINL / ~21 40 EAF MTPA MTPA 0.85 India UK Netherlands SE Asia ~21 EAF 5 TSK / MTPA TSM / TSK NINL 25% Average India EBITDA margin 5 Ph 2 39% 27%
Slide 7: Investments focused upon sector leading returns
Investments focused upon sector leading returns Phased commissioning of 5 MTPA expansion at Kalinganagar Stove heating initiated at the 5 MTPA blast furnace Flats ~16 MTPA ~27 MTPA Longs ~5 MTPA ~13 MTPA 38 MTPA 60 - 65 Upstream Iron ore MTPA *6 MTPA Pellet plant commissioned › Cold Rolled Products
Slide 8: Capacity growth and Customer focus to aid strong market presence
Capacity growth and Customer focus to aid strong market presence “Preferred Steel Supplier” for Auto segment Vehicle teardown studies Construction Service and benchmarking Centers Poised to grow 2x in high margin retail Multiple routes to engage Micro-segmentation to Aashiyana, One stop mitigate mar
Slide 9: Sustainability is at the core of our strategy
Sustainability is at the core of our strategy Route and Pace of decarbonisation to be calibrated across geographies Pursuing multiple initiatives & Committed to achieve 35 – Progressing on transformation committed to responsible 40% CO2 emission reduction to sustainable business growth in India by 2
Slide 10: Embracing Digital and Technology to create and unlock value
Embracing Digital and Technology to create and unlock value Connected Operations Connected Assets Centers of Innovation to Partnering with academia Connected Workforce Connected Platform further strategic advantage to pilot new technology 9
Slide 11: Focus on creating a digitally enabled sustainable Supply Chain
Focus on creating a digitally enabled sustainable Supply Chain Material ~80 MT of raw materials, 15+ countries moved ~29 MT of finished goods, 79+ countries Digital platforms to connect with customers and channel partners – Nexus eCommerce, Compass, DigECA etc. Enhance visibility and transparency in
Slide 12: Financial Management to enable returns across cycle
Financial Management to enable returns across cycle Value Drivers Balance sheet management Capital allocation Operational excellence • Optimise capital structure and cost • Value accretive investments • Minimize working capital • Target Net Debt to EBITDA <2.5x across (ROIC : 15%) cycle • Proactive
Slide 13: Becoming culturally future ready
Becoming culturally future ready → platform for future value creation Certified as ‘Great Place 100 tonne dumper at Noamundi mines, India to Work’ for the 7th consecutive year Talent Preparedness Developing Fostering a Future for growth to 40 Capabilities for Ready Culture MTPA Tomorrow ✓ Talent int
Slide 14: FY2025, a transition year for Tata Steel
FY2025, a transition year for Tata Steel Commissioning of TSK phase 2 – blast furnace, coke oven Tata Steel Progress on Electric Arc Furnace project in Ludhiana India Improving operational & market perf. to benchmark level in industry Augmentation of raw material portfolio Steps towards clean & gree
Slide 15: Thank you
TATA STEEL Thank you <p TATA 14
Tata Steel — Morgan Stanley India Investment Forum 2024 on 6ix