Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Merger or Acquisition (September 2017)
11 slides from Tata Steel's merger presentation, Sep 20, 2017
Slide 1: Cover letter to stock exchanges: submission of analyst presentation
qp TATA September 20, 2017 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. Mumbai - 40
Slide 2: Tata Steel – thyssenkrupp JV
Tata Steel – thyssenkrupp JV 20th September 2017
Slide 3: 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 4: thyssenkrupp Tata Steel Joint Venture
thyssenkrupp Tata Steel Joint Venture Partnership of two reputed global corporations for European Steel Business Both parties envision a long term, successful joint venture 50: 50 shareholding based on fair valuation Joint venture to be called “thyssenkrupp Tata Steel” Headquarters proposed in the A
Slide 5: Creating a sustainable European Steel Enterprise
Creating a sustainable European Steel Enterprise 2nd largest pan-European flat steel player Premium and differentiated product portfolio Currently employs about 48,000 people spread across various locations Focus on innovation, quality, technology and cost leadership Robust capital structure designe
Slide 6: 2nd Largest flat steelmaker in Europe
2nd Largest flat steelmaker in Europe Million tonnes 35 30 25 20 15 10 5 0 AM Europe JV (TKS thyssenkrupp Tata Steel Voestalpine SSAB Salzgitter Ilva 1 US Steel +TSE) Europe Note : Flat Steel production in Europe (2015), 1 Ilva’s acquisition by ArcelorMittal yet to be legally finalised 5
Slide 7: Estimated areas of cost synergies on a steady state basis
Estimated areas of cost synergies on a steady state basis Potential Synergy €400 -600 mn p.a. Integration of Common Combined R&D Higher utilisation of Cost Synergies Commercial and procurement and activities (downstream) steel Administration logistics capacity functions 6
Slide 8: JV Proforma financials (in € mn)
JV Proforma financials (in € mn) Jun’17 Tata Steel Europe (LTM) Deliveries (in million tons) 9.8 JV Proforma (Indicative) Turnover 7,381 Deliveries (in million tons)1 21.3 EBITDA 699 Turnover1 15,966 Jun’17 EBITDA1 1,565 thyssenkrupp Steel Europe (LTM) Deliveries (in million tons) 11.5 Term Debt 2,5
Slide 9: Indicative Timelines
Indicative Timelines Deal closure / JV Anti trust and other Zero date regulatory approval process Signing of Definitive Agreements Negotiations of Agreements Shareholder approval Due diligence MoU Execution September March 2018 December 2018/March 2017 2019 8
Slide 10: Future Strategy for Tata Steel Group
Future Strategy for Tata Steel Group 1 Long term investment in a strong European portfolio 2 Focus on India growth - double capacity in the next five years 3 Structural reduction of debt through the European partnership 4 Financing strategy for growth to include support from Tata Sons 9
Slide 11: 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 Media enquiries: Kulvin Suri Tel: +91 657 664 5512 / +91 92310 52397 Email: kulvinsuri@tatasteel.com Rob Simpson Tel: +44 207 717 4