Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Shareholder Meeting (June 2021)
22 slides from Tata Steel's shareholder meeting presentation, Jun 30, 2021
Slide 1: Annual General Meeting 2021: Presentation to Shareholders
Annual General Meeting 2021 Presentation to Shareholders June 30, 20211
Slide 2: Safe harbor statement
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. Impo
Slide 3: FY21 was an extraordinary year for the global economy and the steel industry
FY21 was an extraordinary year for the global economy and the steel industry Global manufacturing PMIs Total number of vaccination administered ▪ Global GDP contracted 3.5% in CY20 EU UK India China Global due to COVID-19 pandemic 65 50 ▪ Central banks adopted accommodative policies to fight and con
Slide 4: Tata Steel helped the nation in combating the COVID-19 pandemic
Tata Steel helped the nation in combating the COVID-19 pandemic ▪ Collaborated with all stakeholders to optimize the Liquid Medical Oxygen (LMO) supply chain ▪ 55,000 tons of oxygen supplied till May 2021 ▪ Set up 1,000+ COVID care dedicated beds o 450 oxygen beds and 78 ventilator Supplying LMO fro
Slide 5: Tata Steel recalibrated to face the challenging environment
Tata Steel recalibrated to face the challenging environment Engaged with governments in Managed risks at physical assets UK and EU to seek support and across the supply chain Used technology to Agility in Optimized plant operations; ramped drive efficiency the face of up quickly to pre-COVID level a
Slide 6: and has emerged structurally stronger
and has emerged structurally stronger Highest ever annual delivery volumes in India despite the pandemic driven disruption 01 Improvement in revenues on the back of strong steel prices 02 Highest ever EBITDA on strong revenues and operational improvements 03 Generated free cash flow of Rs.23,748 cro
Slide 7: Our key performance highlights
Our key performance highlights Consolidated Steel deliveries Consolidated EBITDA India1 Steel deliveries India1 EBITDA FY21 28.5 mn tons FY21 Rs.30,892 crores FY21 17.3 mn tons FY21 Rs.28,587 crores FY20 28.9 mn tons FY20 Rs.18,103 crores FY20 17.0 mn tons FY20 Rs.17,650 crores Iron Ore mined Pan In
Slide 8: Key strategic priorities
Key strategic priorities 1 Leadership in India 2 Consolidate position as a global cost leader 3 Attain leadership position in adjacent businesses 4 Leadership in sustainability 8
Slide 9: We have leadership position across the preferred segments
Leadership in India We have leadership position across the preferred segments Automotive & Special products Branded products and Retail First Indian steel supplier to collaborate with a leading OEM for Launched GalvaRoS, Galvanova and Colornova for Appliances, joint exercise to benchmark customer’s
Slide 10: and continue to dominate our chosen segments
Leadership in India and continue to dominate our chosen segments Every 2nd LPG cylinders is made 1 out of every 7 Individual Home 2 out of every 3 Automotive steel Every 3rd outer panel of cars is from Tata Steel HR coil Builders build their homes with Tata wheels are produced from made from Tata St
Slide 11: Some of our transformational digital initiatives
Leadership in India Some of our transformational digital initiatives ▪ Enhancing reach through Aashiyana, e-selling platform for Individual Home builders; FY21 revenues improved 130% YoY to Rs.726 crore ▪ Tata Basera 2.0 – the Tata group level synergy programme for IHBs; Tata Power Solar, Voltas Bek
Slide 12: We are focused on value accretive growth to drive market share in chosen segments
Leadership in India We are focused on value accretive growth to drive market share in chosen segments ▪ Increasing capacity of India operations through 10-15 35-40 organic and inorganic growth with a target of achieving 35-40 MTPA capacity by 2030 5 ▪ Work on 2.2 MTPA CRM Complex and pellet 5.6 1 24
Slide 13: We continue to drive improvements in operating efficiency
Consolidate position as a global cost leader We continue to drive improvements in operating efficiency 443 Good Coke rate (kg/thm): 434 381 399 367 367 360 348 352 353 354 o 20% reduction at TSJ since FY15 o 15% reduction at TSK since FY18 FY15 FY16 FY17 FY18 FY19 FY20 FY21 7.29 Good Specific energy
Slide 14: Maximizing structural EBITDA at Tata Steel Europe
Consolidate position as a global cost leader Maximizing structural EBITDA at Tata Steel Europe Focus on self-sustainable European operations ▪ Separation of Netherlands and UK business Revive Reboot Sustain o Delayering of governance structures Deliver urgent short- Maximize structural Ensure all-we
Slide 15: New businesses are progressing well
Attain leadership position in adjacent businesses New businesses are progressing well Services & Solutions New Material Business Commercial Mining ▪ Tata Pravesh achieved best-ever ▪ Commissioned a 100 tonne-per ▪ 3 chromite mines in Odisha; 450 yearly performance with 80,000+ annum integrated Graph
Slide 16: Optimising resources, investing for a sustainable future
Leadership in sustainability Optimising resources, investing for a sustainable future 62% reduction in stack dust emission intensity at TSK since FY17 2025 targets 2030 targets ▪ TSI: <1.8 tCO2 /tcs Carbon ▪ TSI: <2 tCO2 /tcs ▪ TSE: 30% reduction in specific Emission emissions over 2020 ▪ TSI: speci
Slide 17: Committed towards excellence in Safety and Health
Leadership in sustainability Committed towards excellence in Safety and Health LTIFR reduction ▪ Trained 13,000+ workforce on various safety standards at Safety by 24% 0.95 Safety Leadership Development Centre in FY21 0.78 0.72 0.69 0.68 0.60 0.58 0.56 ▪ Reduced red-risk incidents by 61%YoY in FY21
Slide 18: Improving life quality of our communities
Leadership in sustainability Improving life quality of our communities ▪ Engaged with 1.6 million+ lives through our CSR program ▪ Spent Rs.1,100 crores+ in last 5 years on: o Education o Health & Sanitation o Livelihoods o Youth empowerment 2,50,000+ children’s lives impacted through Over 1 million
Slide 19: Awards & Accolades
Awards & Accolades ▪ Tata Steel India and Tata Steel Europe named Sustainability Champions 2020 by WSA for the third consecutive year ▪ Climate Action Programme (CAP) 2.0° - Oriented Award by CII ▪ CII’s 3R Awards 2020 for demonstrating 3R (Reduce, Reuse, Recycle) principles in by- products manageme
Slide 20: Journey Continues… We value your inputs and suggestions
“ Journey Continues… We value your inputs and suggestions.” 20
Slide 21: Annexure I: Tata Steel Standalone highlights
Annexure I: Tata Steel Standalone highlights Revenues from operations Deliveries (mn tons) (Rs. crores) EBITDA Margin (%) Net Debt (Rs. crore) 70,611 64,869 33.8 60,436 12.69 12.32 12.36 36,907 29.4 28,471 25.0 20,219 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Diluted Earnings per R
Slide 22: Annexure II: Tata Steel Consolidated highlights
Annexure II: Tata Steel Consolidated highlights Revenues from operations Deliveries (mn tons) (Rs. crores) EBITDA Margin (%) Net Debt (Rs crore) 1,57,669 1,56,294 1,48,972 19.8 28.88 28.50 18.9 1,04,779 26.80 94,917 75,389 12.2 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Diluted Earn