Tata Steel Limited has informed the Exchange about Investor Presentation
July 5, 2023
The Secretary, Listing Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street,
The Manager, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (E),
Mumbai - 400 001, Maharashtra, India. Scrip Code: 500470
Mumbai - 400 051, Maharashtra, India. Symbol: TATASTEEL
Dear Madam, Sirs,
Sub: Submission of Presentation to be made to Analysts/Investors
Please find enclosed herewith the presentation to be made to Analysts/Investors at the 116th
Annual General Meeting of Tata Steel Limited scheduled to be held on July 5, 2023.
This presentation is being submitted in compliance with Regulation 30(6) of the SEBI (Listing
Obligations and Disclosure Requirements), Regulations, 2015.
This is for your information and records.
Yours faithfully, Tata Steel Limited
Parvatheesam Kanchinadham Company Secretary & Chief Legal Officer (Corporate & Compliance)
Encl: As above
Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India Tel 91 22 6665 8282 Fax 91 22 6665 7724 Website www.tatasteel.com Corporate Identity Number L27100MH1907PLC000260
Preferred option
Annual General Tata Steel Results Meeting 2023 Presentation
Fourth quarter and Financial year Ended March 31, 2023
Presentation to shareholders Fourth quarter and Financial year Ended March 31, 2023
Annual General Meeting 2023
Presentation to shareholders
May 02 2023
July 05, 2023
Steel - Born of Fire, the equation is visually represented in ‘Agni’ sculpture and demonstrates the strength and flexibility of Tata Structura circular hollow sections Jubilee Park, Jamshedpur
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 inferred or indirectly expressed, implied. Important factors that could make a difference operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to regulations, the environment, Government laws, statutes, judicial pronouncements and/or other incidental factors.
the Company’s
to
Tata Steel Kalinganagar, India’s first Manufacturing Lighthouse
Focused on creating sustainable value
Leadership in India
Consolidate position as global cost leader
Become future ready
Leadership in Sustainability
Leadership position in technology & digital
Robust financial health
3
Focus on ‘Zero harm’ Committed towards excellence in Safety & Health of employees1
Safety remains a top priority
71% LTIFR*
In the last 15 years
Integrated Command Center Integrated Command Center to monitor
Integrated Command Center Safety Leadership Development Center
8 0 Y F
9 0 Y F
0 1 Y F
1 1 Y F
2 1 Y F
3 1 Y F
4 1 Y F
5 1 Y F
6 1 Y F
7 1 Y F
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 Y F
*Lost Time Injury Frequency Rate per million-man hours worked, for Tata Steel Group
Integrated Command Center “FELT Leadership” to drive risk perception
Integrated Command Center Focus on Health of employees
Note : 1. Employees refers to Permanent and Contract workforce
4
Improving quality of life of our communities Social capital and scalable change models to enable deep societal impact
Rural & Urban Education
Household Health & Nutrition
31.5 Lakh+
Lives Impacted1
Tribal Cultural Heritage
Grassroots Rural Governance
~Rs 1,600 crores spent2 since FY19
Women & Youth Empowerment
Dignity for the Disabled
Household Livelihoods
Water Resources
481
406
315
222
193
Strengthening tomorrow : Reached out to 6.7 lakh + children via signature education programs and >56,000 brought back to school
Grassroots Sports
Public Infrastructure
FY19 FY20 FY21 FY22 FY23
1 Cumulative as on FY23 2 CSR Spending by Tata Steel Standalone
5
Net Zero by 2045 Pursuing sustainability through multiple pathways
Adoption of HIsarna
Multilocation EAF
Lower Alumina in Iron ore
Progress on Hydrogen usage
Cleaner fuel i.e., Natural gas etc.
Reducing ash in Coal
Higher scrap charge
Initiatives
Higher Renewable energy use
Upscaling CCU pilots
Partnering with Academia
Nature based solutions – biomass etc.
FY23 progress
▪ Improvement in Blast
furnace fuel rates esp. at Jamshedpur and TSLP
▪ Trial for injecting H2 into blast furnace to reduce coke usage
▪ Signed expression of
principles with Dutch govt. for decarbonisation of Ijmuiden operations
▪ Initiative to replace ~379 MW of coal based power with renewable energy
▪ Increase in steel scrap usage across locations
▪ Pilot to convert captured CO2 to polycarbonate
▪ Constructing dedusting plant at Ijmuiden to reduce emissions
▪ Trial of 1 kWh TEG to
convert low grade waste to Electricity
Note : CCU – Carbon Capture & Utilisation, EAF – Electric Arc Furnace, TSLP – Tata Steel Long Products, TEG - Thermo-Electric Generator , CO2 – Carbon dioxide, H2 - Hydrogen
6
India1 Tata Steel is focused on market leadership in chosen segments
Domestic deliveries up 11% YoY
Auto and ancillaries
4.2
3.8
3.3
Retail : Individual House Builders
2.5
2.8
2.2
Construction and Infrastructure
4.6
4.2
3.7
Sales in mn tons
Engineering goods
1.8
1.6
2.0
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
Energy
Packaging
Consumer Durables
Trade & Commercial
0.5
0.5
0.6
0.5
0.5
0.5
0.4
0.6
0.6
1.9
1.7
1.5
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
Note : 1. India incl. Standalone and Tata Steel Long Products, FY21 & FY22 are estimates, Auto and ancillaries incl. B2B, ECA, Wire and Specialty steel sales; Retail is B2C includes Tiscon, Shaktee, Galvanised Plain Retail, Tubes & Wires; Packaging incl. Tinplate, High Tensile steel strapping, LPG etc., Construction & Infra is B2B sales to construction firms; Energy incl. Oil & Gas, Wind, Solar etc.; Consumer Durables is to Furniture, Appliances; Engineering incl. Shipbuilding, Railways, Capital Goods etc.; Trade & Commercial is sales to rerollers, fabrication etc. B2B – Business to Business, ECA – Emerging Corp. accounts, B2C – Business to Consumer; LPG – Liquefied Petroleum Gas
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Europe Product mix oriented towards evolving needs
Green steel offerings – Zeremis in Netherlands & Optemis in UK
Supplier for leading Auto OEMs
Energy and Mobility
Infrastructure and Construction
Note : Zeremis = Zero Emissions (Tata Steel Netherlands), Optemis = 0% Port Talbot Emissions (Tata Steel UK), OEM – Original Equipment Manufacturer
8
Some milestones we are proud of
36 million tons of Iron ore mined
500+ kt slag used for road construction
1st in India with Responsible Steel certification
1st in India to receive license for weather resistant steel
Global Diversity, Equity & Inclusion lighthouse
100+ transgender employees onboarded
Dream Click Build
Rs 1,730 crores sales, >18% YoY growth
Improvement savings of Rs 6,300+ crores
100+ new products developed
150+ patents filed and granted
Consistent spend on R&D
Fibre reinforced composites for Vande Bharat coaches
Note : World Economic Forum recognised Tata Steel as Global Diversity, Equity & Inclusion lighthouse, R&D - Research and Development, Slag is a by-product in steel making process
9
Growth in India to consolidate market leadership Future investments set to drive sector leading returns Leadership in India
2x
India Crude Steel production by 2030
0.75
EAF
TSK / TSM / NINL
5
TSK Ph 2
~21 MTPA
5
16
Flats
Flats
2023 ~16 MTPA
2030 ~27 MTPA
40 MTPA
NINL / EAF
Longs
Longs
~5 MTPA
~13 MTPA
Crude Steel
Crude Steel
~21 MTPA
40 MTPA
Upstream
36 MTPA
Iron ore
~60 - 65 MTPA
Downstream
1 MTPA
Tubes
~4 MTPA
0.45 MTPA
Wires
~1 MTPA
0.38 MTPA
Tinplate
~1 MTPA
2023
TSK Ph 2
EAF
TSK / TML / NINL Ph 1
NINL Ph 2 / EAF
2030
Note : TSK – Tata Steel Kalinganagar, EAF – Electric Arc Furnace, TSM – Tata Steel Meramandali, NINL – Neelachal Ispat Nigam Limited and DI – Ductile Iron
0.20 MTPA
DI Pipe
~1 MTPA
10
Flats: 5 MTPA expansion progressing at Kalinganagar Value added growth to maintain a future ready portfolio 1st FHCR coil and pellets produced at TSK 5 MTPA expansion progressing
Note: PLTCM – Pickling Line and Tandem Cold Mill, CAL – Continuous Annealing Line, CGL – Continuous Galvanising Line, TSK – Tata Steel Kalinganagar, FHCR – Full Hard Cold Rolled
11
Longs: Well-placed to more than double market share Multilocational growth plans under execution
NINL, a strategic acquisition, ramping up well
Business model innovation through EAF based Mini Mill
State-of-the-art facility to deepen play in Specialty steel
Existing capacity ~1 MTPA
EAF of 0.75 MTPA in Punjab
Combi Mill of
0.5 MTPA
Note : NINL - Neelachal Ispat Nigam Limited: EAF - Electric Arc Furnace
12
Downstream: Value added growth for product mix enrichment Tubes, Wires, Tinplate and Tata Metaliks
Tubes
Wires
Tinplate
Ductile Pig Iron
Application of tubes in a structure at Kolkata
One of the largest steel wire manuf. in world
100 years of leading tinplate revolution
Tata Ductura, designed to last for years
Focus on capacity & technology to further market share
Wire capacity expansion of 0.1 MTPA underway
Tinplate capacity to be ~0.7 million tons by 2025
Progressing towards around 0.4 MTPA by FY24
Note : LRPC - Low Relaxation Pre-Stressed concrete
13
We continue to drive improvements in operating efficiency Focus on consolidating position as a global cost leader
5 year cost savings at Tata Steel India
Cost and Supply chain Optimisation
6,545
5,369
5,463
Rs crores
6,309
Scaling up Iron ore mining capacity
6 MTPA pellet plant commissioned at TSK
FY20
FY21
FY22
FY23
Note: 1 India incl. Tata Steel Standalone and Tata Steel Long Products
Improving logistics - Slurry pipeline, Inland waterways
14
Digital ecosystem to empower business Enable cultural readiness
Three assets recognized as 4IR Lighthouse
Digital ready culture
Digital leader in Global steel
Digitally enabled savings
Connected operations
Connected assets
>$1 bn business value potential created in last 5 years
200+ machine learning models developed
99.99% System availability
Note: 4IR – Fourth Industrial Revolution
Connected workforce
15
Tata Steel Consolidated Financial Highlights
Production (mn tons)
Revenues (Rs Crores)
EBITDA (Rs Crores)
31.03
30.65
2,43,959
2,43,353
63,830
28.54
1,56,477
30,892
32,698
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
PAT (Rs Crores)
Diluted Earnings per share (Rs.)
Dividend per share (Rs.)
41,749
33.2
8,190
FY21
FY22
8,075
FY23
6.4
FY21
FY22
7.2
FY23
5.1
3.6
2.5
FY21
FY22
FY23
Note : Figures for previous periods have been regrouped and reclassified to conform to classification of current period, where necessary, Dividend per ordinary share of Face Value Rs 1/-
1 6
16
Our efforts are recognized globally and nationally
TSL and TSE recognized as ‘Sustainability Champions’ by Worldsteel (6th time in a row)
Great Place to Work Certified organisation in India for 2023 for the 6th time
Jamshedpur is the first site in India to receive the Responsible SteelTM certification
Recognised as Global Diversity Equity & Inclusion Lighthouse 2023, for efforts to improve gender diversity at workplace
Named top performer in Iron and Steel sector in Dun & Bradstreet's India's top 500 companies 2022
Recognised as ‘Supplier Engagement Leader’ for efforts in measuring and reducing environmental risks across supply chain
1st Winner of "Excellence in 3R (Reduce-Reuse-Recycle)” by CII
Jamshedpur Steel Plant recognised as Advanced 4th Industrial Revolution Lighthouse
Received worldsteel’s Safety and Health Excellence Recognition for 2022
Note : CII – Confederation of Indian Industry
17
“ Journey Continues… We value your inputs and suggestions.”
Note: 1 India incl. Tata Steel Standalone and Tata Steel Long Products, BPR – Branded
Products and Retail, IPP – Industrial Products and Projects
18