Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Presentation (September 2021)
16 slides from Tata Steel's investor presentation, September 2021
Slide 1: Investor Presentation September 2021
INVESTOR PRESENTATION September 2021 1
Slide 2: 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 3: Overview
Overview Global scale of operations ▪ Flagship company of Tata Group India1 ▪ Highly integrated and profitable India operations ▪ One of the lowest cost producer in the world ▪ Integrated steel producer having 34 MTPA steelmaking ▪ Steelmaking capacity: 19.6 MTPA with 5 MTPA capacity with operations
Slide 4: Tata Steel is focused on creating sustainable value
Tata Steel is focused on creating sustainable value Consolidate Leadership in Robust financial position as global India health cost leader Leadership position Leadership in Become culturally in technology sustainability future ready and digital 4
Slide 5: Our strategy is pivoted around capitalizing on India growth story
Our strategy is pivoted around capitalizing on India growth story… Targeting value accretive growth in India India to be the dominant manufacturing base for Tata Steel going forward 2010: 22 MTPA 2020: 34 MTPA 2030F: 55 MTPA Production capacity (MTPA) 29% 57% 73% India Europe South –East Asia Optimi
Slide 6: …with future investments focussed upon sector leading returns
…with future investments focussed upon sector leading returns India Steel New & Allied Production Business Downstream Portfolio in India › Complete 5 MTPA Kalinganagar › Cold Rolled Products – From 4.3 MTPA to 6.5 MTPA › Electric arc furnace low carbon Steel expansion › Ductile Iron Pipes - From 0.2
Slide 7: Continuous focus to attain and retain leadership in chosen segments
Continuous focus to attain and retain leadership in chosen segments for strong market presence Leadership position in chosen Market share segments in India FY18 FY21 ▪ 1 in every 3 outer panels Preferred 40 brands across customer Over Rs.10,000 45%4 58%4 ▪ 2 in every 3 wheels supplier for auto segme
Slide 8: We are investing in capabilities to attain leadership position in adjacent businesses
We are investing in capabilities to attain leadership position in adjacent businesses Services & Solutions New Material Business Commercial Mining Composite Graphene Medical Materials › Servitizing steel to de-risk business › Capitalizing future needs of existing › Chrome business o Pravesh – Doors
Slide 9: Continuous structural and operational improvements key to achieve our financial goals
Continuous structural and operational improvements key to achieve our financial goals Global cost leader Among the lowest 3 on the global HRC cash cost curve All figures are in Rs. crores 5 year cost savings at Transformation programme at Tata Steel India operations Tata Steel Europe Cost and Supply
Slide 10: All key metrices continue to improve
All key metrices continue to improve EBITDA Margin (%)1 EBITDA / ton (Rs.)1 Interest Coverage Ratio (x)1,2 Gross & Net Debt (Rs. crore) 22,779 8.9 30.3% 1,16,328 1,00,816 92,147 88,501 84,237 18.9% 19.8% 83,014 1,04,779 17.2% 11,110 94,879 14.5% 12.2% 9,337 10,838 3.9 3.9 7,129 3.4 4.1 72,367 69,215
Slide 11: Pathway for our future financial strategy
Pathway for our future financial strategy ▪ Investment grade financial metrics; strong earnings and cashflow performance ▪ US$2 billion+ gross debt reduction while prioritize off-shore debt pre-payment Short-term ▪ Continued focus on capital allocation, cashflow and working capital management (FY22
Slide 12: Sustainability is deeply embedded in Tata Steel ecosystem
Sustainability is deeply embedded in Tata Steel ecosystem Key achievements 2025 goals 2030 goals ▪ TSI: Achieve <1.8 tCO2 /tcs ▪ TSI: 19% reduction in emission ▪ TSI: Achieve <2 tCO2 /tcs Climate carbon emission intensity since 2005 carbon emission Long term decarbonization change ▪ TSE: 30% reducti
Slide 13: We aspire for leadership position in identified technology areas
We aspire for leadership position in identified technology areas Use of low-quality Iron ore, Technologies for generation Technologies for Water Use of AI to drive process coal and ferro alloy minerals /usage of green/blue H2 in neutrality through Reduce, excellence and ‘first time right’ steel valu
Slide 14: Becoming culturally future ready will provide the platform for future value creation
Becoming culturally future ready will provide the platform for future value creation Strengthening enablers for Future of ‘Work’, ‘Workforce’ and ‘Workplace’ Culture of Safety, Continuous Agility, Innovation and improvement, Ethics & Giving Technology leadership back to the community Certified as In
Slide 15: Our efforts are recognized globally and nationally
Our efforts are recognized globally and nationally TSL and TSE recognized as Safety & Health Excellence Recognized as the ‘Sustainability Recognition 2020 for world's most ethical Champions’ by Digitalization of Process companies for the Worldsteel (4th Safety Performance 10th time by time in a row)
Slide 16: We are on our way to build the Tata Steel of the Future
We are on our way to build the Tata Steel of the Future ▪ Most respected and preferred supplier by discerning customers ▪ Be one of the lowest cost producer globally ▪ Strong focus on Free cash flow to create shareholder value Most respected and ▪ Leadership in sustainable practices: low carbon busi