Tata Steel Limited has informed the Exchange about Investor Presentation
The Secretary, Listing Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Maharashtra, India. Scrip Code: 500470
Dear Madam, Sir,
February 25, 2025
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 - 400 051. Maharashtra, India. Symbol: TATASTEEL
Sub: Investor Presentation
This has reference to our analyst meet intimation dated February 20, 2025.
In this connection, we enclose herewith the presentation to be made at the ‘IIFL Enterprising India Conference’ scheduled to be held today i.e., February 25, 2025.
The above information is also available on the website of the Company at www.tatasteel.com
This intimation is being provided in compliance with Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
This is for your information and records.
Yours faithfully,
Tata Steel Limited
Parvatheesam Kanchinadham Company Secretary and Chief Legal Officer
Encl.: as above
Tata Steel IIFL’s 16th Enterprising India Global Investors’ Conference
February 25, 2025
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. Important factors that could
make a difference to the Company’s 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 the
environment, Government regulations, laws, statutes, judicial
pronouncements and/or other incidental factors
2
Tata Steel is focused on creating sustainable value
Leadership in Sustainability
Leadership in India
Leadership in technology and digital
Consolidate position as global cost leader
Robust financial health
Become future ready
3
Leadership in Sustainability
Sustainability is at the core of our strategy Route and pace of decarbonisation being calibrated across geographies
emissions by 2045
Our ESG goals underpin broader focus areas, and we collaborate with reputed global bodies for policy advocacy
Committed to responsible growth; EAF & multiple initiatives to reduce emissions
Transitioning to greener steelmaking; EAF to be operational by 2027-28
Committed to 35 - 40% emission reduction by 2030, Govt. support key
Circular economy
Biodiversity, Water
Supply Chain
Air emissions, Dust
Employees, Community
R&D, Technology
Note: EAF – Electric Arc Furnace, R&D – Research & Development
4
Leadership in India
India steel remains a bright spot aided by the economic growth cycle
India steel per capita consumption is at an inflection point
Domestic demand to be driven by wide range of factors
3 2 0 2 , ) g k ( a t i p a C
r e P U S A
China
628
309 Russia
110
Brazil
93
India
Japan
433
Germany
337
135
UK
USA
266
136
million tons in FY2024
>200
million tons in FY2030e
Urbanisation, Mega Cities
Investment cycle, Public & private
Demographics, Disposable income
0
GDP Per Capita (US$, current prices), 2023
80,000
Government policy
Industry life cycle, Product mix
Source : worldsteel, ASU – Apparent Steel Use
5
Leadership in India
Tata Steel is scaling up in India to capitalise on growth opportunity Manufacturing sites with available land bank to move to 40 MTPA
Dominant manufacturing base + Brownfield optionality across multiple sites
69%
>75%
India share (%)
India share (%)
~26.6* MTPA
40 MTPA
India
UK
Netherlands
SE Asia
0.85
EAF
5
TSK Ph 2 Commissioned
5
16
Flats (A)
~21.2 MTPA*
~27 MTPA
40
Longs (B)
~5.4 MTPA
~13 MTPA
Crude Steel (A+B)
~26.6 MTPA*
40 MTPA
Upstream
~42 MTPA Iron ore
60 - 65 MTPA
Tubes Wires
Tinplate
DI Pipe
Downstream
1.3 MTPA
0.6 MTPA
0.38 MTPA
0.45 MTPA
~4 MTPA
~1 MTPA
~1 MTPA
~1 MTPA
Note : *Post ramp up of Kalinganagar facilities, UK capacity considered ~3 MTPA, TSK – Tata Steel Kalinganagar, EAF – Electric Arc Furnace, TSM – Tata Steel Meramandali, NINL – Neelachal Ispat Nigam Limited and DI – Ductile Iron
6
Leadership in India
India’s largest blast furnace commissioned at Kalinganagar Kalinganagar expansion to enhance product mix and cost savings
5 MTPA expansion with State-of-the-art features
Phase 2 Kalinganagar expansion to aid meet evolving needs in chosen segments
▪ Key facilities in Phase II expansion include 2.2 MTPA CRM
complex and ~ 6 MTPA Pellet plant
▪ Automotive
» Cold Rolled (CR) coils and sheets upto 1180 MPa
» GA (Galvannealed) upto 980 MPa
» Aluminum-Silicon coated for high temperature applications
▪ Energy, Engineering and Construction
» Zn-Al-Mg coated for solar, construction & infrastructure and
general engineering
» Additional hi-strength hot rolled for use in lifting & excavation and
oil & gas among others
Note : CRM – Cold Rolling Mill, Zn – Zinc, Al – Aluminum and Mg - Magnesium
7
Leadership in India
Capacity growth and Customer focus to aid strong market presence Focused on leadership in chosen segments
Vehicle teardown studies and benchmarking
Construction Service Centers to shape market
Micro-segmentation to mitigate market volatility
Focus on downstream capabilities
“Preferred Steel Supplier” for Auto segment
Poised to grow 2x in high margin retail
Multiple routes to engage
Innovating to solutions
8
Leadership in technology & digital
Embracing Digital and Technology to create and unlock value >75% of our steel production is through WEF-recognised Global Lighthouse Sites
TSL Centres for Innovation : Satellite R&D Centres to leverage national and global technology ecosystem
7-layer architecture© for digital transformation and AI to drive Business Excellence
IIT Madras, India
IIT-ISM Dhanbad, India
Mobility
Mining & Mineral Processing
Manufacturing Excellence ▪ AI assisted Exception management &
improved Predictability
▪ Pre-emptive & Preventive safety management
Process and Safety Analytics
Tata Steel R&D
Parent Hub
Monash University, Australia
Environment & Intelligent Manufacturing
University of Warwick UK
UK Hub
Advanced materials Henry Royce, Manchester
Sustainable design & manufacturing Imperial College, London
Swansea University, Wales
Note : WEF – World Economic Forum, AI – Artificial Intelligence
Functional Excellence
▪ AI assisted Intelligent Automation, Event Prediction & Ecosystem Intelligence
Price predictions, Automated risk analysis
Customer Experience
▪ Personalised experience across channels
Complaint management, E-commerce recommends
9
Consolidate position as global cost leader
Focus on consolidating position as a global cost leader
▪ Cost improvement measures across geographies
Structural transformation in progress at UK
Since Sep’23, UK fixed cost base has declined by around 20% or £69 per ton
▪ Connected solutions and strategic project
deployment to improve performance
355
Fixed cost base per ton of deliveries
286
▪ Optimisation of raw material related costs
▪ Digitally enabled sustainable supply chain
2QFY24
3QFY24
4QFY24
1QFY25
2QFY25
3QFY25
Note : UK fixed cost base = Employee costs + Maintenance + Hiring & Leasing + Other operating charges
10
Robust financial health
Financial Management to enable returns across cycle
Balance sheet management
Capital allocation
Operational excellence
»
»
»
Optimise Capital Structure & Cost
»
Portfolio restructuring
»
Minimise working capital
Target Net debt to EBITDA < 2.5 – 3.0x across cycle Proactive financing to drive flexibility and reduce costs
29
14
14
»
Value accretive investments (ROIC : 15%)
»
Continuous improvement programs
Total Shareholder Returns1 (%)
Tata Steel 18
Nifty 50
Sensex
11
10
15
11
11
5 years
10 years
25 years
Rated Investment grade by two international credit rating agencies – Moody’s (Baa3) and S&P (BBB)
Note : 1Total Shareholder Returns sourced from Bloomberg as of 07th February 2025 and considers dividend reinvestment
11
Become future ready
Becoming culturally future ready
#India’s First-ever All-Women Shift in iron ore mine
Initiatives to reach new level of excellence
Talent Preparedness for growth to 40 MTPA
Focus on productivity and restructuring
Fostering a Future Ready Culture
✓ Talent integration
post mergers
✓ Cost
competitiveness
✓ Culture of safety :
Zero Harm
"Women@Mines" and "Tejaswini" initiatives to empower women for all roles in mining operations
✓ Focus on skill for all categories of people
✓ Building talent pipeline for decarb projects
✓ Achieved 20%
diversity for the 1st time in India
Note : . Diversity refers to % of employees who belong to categories of Affirmative Action (AA) / Women / Persons with Disabilities (PwD) / LGBTQIA+
12
Overall, agile business model & strategic initiatives to drive progress
Ramping up 5 MTPA blast furnace at Kalinganagar
Tata Steel India
Progressing on EAF project in Ludhiana and focus on downstream
Improving operational & market performance to benchmark level in industry
Most respected and valuable steel company globally by 2030
Tata Steel UK
Transitioning to economically and environmentally viable operations
Reconfigured supply chain to continue to serve customers
Progressing on ~3 MTPA EAF project, equipment orders placed
Tata Steel Netherlands
Focused initiatives to optimise costs and improve productivity
Commenced discussions with the Dutch government for decarbonisation support
Note : . EAF – Electric Arc Furnace
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Thank you
Vision for tomorrow’s mining spaces - Naxtra Park spanning
12,500 m2 at one of our mining site in India
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