Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Day (October 2017)
18 slides from Tata Steel's investor day presentation, Oct 4, 2017
Slide 1: Tata Steel India – Analyst Day 2017
Tata Steel India – Analyst Day 2017 4th October 2017 1 1
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: Committed towards excellence in Health and Safety
Committed towards excellence in Health and Safety We are one amongst the industry Tata Steel India: > 92% reduction in benchmarks for LTIFR1 LTIFR over 12 years 5 Key Results: Reduction in LTIFR to 0.39 in Q1 FY18 4 ‘Zero’ fatality at Jamshedpur Works in FY17 3 Health Index has improved fr
Slide 4: Demonstrated track record of execution and growth
Demonstrated track record of execution and growth 2012-2013:Thin Slab Caster (TSCR) 2011: JCAPCPL for Auto Steel a2005: TBSL 2002: 2006: 2008: 2012: 2016: Total current Organic and 2022: Crude Steel Jamshedpur Jamshedpur Jamshedpur Kalinganagar Crude Steel In-organic Crude Steel production brownfiel
Slide 5: Industry leading volume growth
Industry leading volume growth Lower growth due to capacity constraint 7% 18 1% 11% 15 14 2% 13 13 12 45% 10% FY17 total Sales: 9 10.97 million tons 7 6 4 4 3 3 3 3 19% 1 6% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Construction Capital Goods India steel consumption growth (%) Automotive General Enggi
Slide 6: Preferred supplier in chosen segments; command premium pricing
Preferred supplier in chosen segments; command premium pricing Segment Products Sales1 Key highlights Automotive & Market leader with 44%2 market share Special products 1.58 Technology & longstanding customer relationships are key differentiators Share in new launches show maturity of Tata Ste
Slide 7: Integrated pan-India sales distribution network
Integrated pan-India sales distribution network 6 Hubs (larger warehouses) and 14 spokes (smaller warehouses) 147 distributors, and more than 12,600 dealers and retailers1 Delivering advantage especially after GST 60% of outbound logistics is cover by rail network and rest by roads; first co
Slide 8: Market leadership in Automotive segment
Market leadership in Automotive segment 1995-2000 2000-05 2005-15 2015 onwards Market HR import CR import substitution Customer Service Teams Value Analysis Value Initiatives/ substitution Dedicated Application Long term pricing Engineering (VAVE) differentiators Ancillary play Enginee
Slide 9: Branded products: de-commoditisation of steel
Branded products: de-commoditisation of steel Brand value – introductory Brand value – growth period: enhancing Brand value – maturity period: period: creating brand identity & service capability & consumer focus on customised solution & establishing channel experience redesigned offering 48 50 Turn
Slide 10: Making inroads in value added and new segments within the IPPE sector
Making inroads in value added and new segments within the IPPE sector Value added products segments New Segments PEB PEB LPG PT MCHC L&E Oil & Gas Pipe Enhanced market share in LPG segment from under 30% Gained entry with Industry leaders in PEB segment to 45% levels in 3 years, through customer
Slide 11: Value creation through downstream facilities
Value creation through downstream facilities Divisions Transfers1 Key highlights Key brands Tubes 516 Key products: Commercial, Structural and Precision tubes Key applications: Plumbing , Irrigation, Process, Architectural, Industrial, General Engineering, Infrastructure, Auto, Boiler 32% sale
Slide 12: Innovating to capture value through Services & Solutions
Innovating to capture value through Services & Solutions Construction Solutions Incremental value pool untapped for construction solutions to Individual Home Services & solutions Builder; Consumer pays for the solution, speed & convenience 50 over rebar (15/Sq. Ft.) First steel company to enter
Slide 13: Focus on operational excellence and continuous improvement
Focus on operational excellence and continuous improvement Themes Key Achievements Mining Iron Making 7% drop in overall Fuel rate at blast furnaces with 63% increase in Coal injection rates 12% reduction in Refractory consumption across Steel Value plants Chain 6% increase in Sinter volume St
Slide 14: Structured approach towards productivity improvement
Structured approach towards productivity improvement (TCS1/FTE2/year) 1,014 Implementation of identified Employee 840 Productivity Improvement (EPI) projects: 720 701 Re-engineering of work processes 623 597 Improvement in work practices 513 Automation and mechanization of jobs 456 455 443 4
Slide 15: Continue to be one amongst the lowest cost producer
Continue to be one amongst the lowest cost producer Effectively countering the impact of Inflation Production costs for HRC globally (US$/ ton1) 6.3% 458 450 416 413 410 403 398 382 375 357 356 310 280 273 249 -0.5% SAIL NSSMC Wuhan JSW POSCO Baosteel MMK CSN NLMK JSC Cherepovets JFE Steel ArcelorMi
Slide 16: Tata Steel Kalinganagar – the game changer
Tata Steel Kalinganagar – the game changer Optimal design to drive efficiency and meet sustainability benchmarks Automation to drive higher employee productivity Logistics advantage due to its proximity to the port Expanding product range and customer Option to scale up for future growth B
Slide 17: Building a sustainable business for the future
Building a sustainable business for the future >100 years of inclusive growth in partnership with communities Structured long term interventions for sustained impact in areas we operate Efficient use of resource through superior design and operating philosophy Sustained efforts to mitigate impact on
Slide 18: Contact
Contact Investor enquiries : Samita Shah Tel: +91 22 6665 7307 Email: Samita.shah@tatasteel.com Sandep Agrawal Tel: +91 22 6665 0530 Email: Sandep.agrawal@tatasteel.com 18