Tata Steel (Thailand) Welcomes Financial Analysts Team 14 th May, 2013 0.

Tata Steel (Thailand)

Welcomes

Financial Analysts Team

14th May, 2013

1

2

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Global &Thailand in

Q4-FY’13

• TSTH Performance in Q4- FY’13 & Fy13

• Business Outlook for FY’14Tata Steel(Thailand)

3

Safety & Environment : Best Ever Performance in FY’13

Good

Good

FY'10 FY'11 FY'12 FY'130

0.5

1

1.5

2

2.5

3

3.5 3.24

1.31

0.770.47

Loss Time Injury Frequency Rate

FY'09 FY'10 FY'11 FY'12 FY'130

0.2

0.4

0.6

0.8

1

1.2

0.57

0.827

0.961

0.814

0.614

Co2 Emission(Tons per ton of cast steel)

“Grow Smart with Tata Steel”

“Grow Smart with Tata Steel” book corner has been granted to 158 schools. In FY’14, CSR plans to grant book corners to 20 schools in north & central region and near 3 plants

SISCO “Blood Donation ”

On March 19th, 39 SISCO employees and

sub-contractors have donated blood to

Thai Red Cross, Saraburi Branch. The

total blood amount equals 15,200CC.

NTS Supported New Medical Center

ProjectDuring March 19th – 21st, Granted 10,000 THB and 1,200 set of Tata Drinking Water for Somdej Phraborom Ratchathevi Na Sriracha Hospital, under Royal Thai Red Cross Society, in order to support the new medical center project.

SCSC’s National Children Day Activity

SCSC supported gifts for 4 primary schools

in Rayong province on the occasion of

National Children’s Day. The company also

supported Multiple-Handicap children by

providing material for their skill

development.

.

Community Welfare : Highlight in Q4 FY’13

5

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Global & Thailand in

Q4 FY’13.

• TSTH Performance in Q4 FY’13

• Business Outlook for FY’14 Tata Steel(Thailand)

6

Showing strong recovery post floods, Thailand has registered a robust 6.4% growth in 2012… f/c > 5% in Cy13

Baht 2.2 Trillion investment in Infrastructure & private construction to boost construction … will help steel & cement demand

7

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Global &Thailand in

Q4 FY13.

• TSTH Performance in Q4 FY’13

• Business Outlook for FY’14 Tata Steel(Thailand)

8

ASEAN has shown a better steel growth at 7% than rest of the world…

… expect that 5+% growth rate will be sustained in 2013 led by Thailand, Indonesia and Malaysia.

10,758

14,012 14,647

16,614 17,360

5,175

8,087 9,057

11,293

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2009 2010 2011 2012 2013 (EST)

Thou

sand

s Consumption Import

Source : ISIT - Iron & Steel Institute of Thailand

In Thailand, Steel demand (LP+FP) grew by 12% in 2012 over 2011… but imports grew by 25% !

Irrational imports especially from China have caused big damage to the revenue of Thai steel producers…

Forecast

12%

25%

5 %

9

?? %

?

Source : ISIT - Iron & Steel Institute of Thailand

… & impact is severe in Long Products, where the import growth is 26% on a much smaller market !

4,144

4,620 4,761

5,355

5,656

1,135

1,718 1,970

2,483

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 2013 (EST)

Thou

sand

s

Consumption Import

Unfair imports from China in Wire rods & Bars have put an intense price & volume pressure – Emergency situation & help required to protect Thai long producers.

12 %

26 %

6 %

?

11Tata Steel(Thailand) 1

Quite evidently, 2012 has been a tough year for the steel companies across the world & in SE Asia

12

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Global & Thailand in

Q4 FY’13.

• TSTH Performance in Q4 FY’13 & Fy13

• Business Outlook for FY’14 Tata Steel(Thailand)

13

4%

Lower steel prices in 2012

v/s 2011

Despite tough business conditions in 2012, TSTH has shown a remarkable recovery in Q4 Fy13 and in Fy13 …

Tata Steel(Thailand)

Q4 FY'12 Q4 FY'13 FY'12 FY'130

200

400

600

800

1000

1200

1400

283 312

1138 1175

Deliveries(KT)

Q4 FY'12 Q4 FY'13 FY'12 FY'130

200

400

600

800

1000

1200

1400

299 315

1164 1167

Production (KT)

Q4 FY'12 Q4 FY'13 FY'12 FY'130

5000

10000

15000

20000

25000

30000

6438 6371

25994 24822

Turnover (MB)

10%

3%

5%

14

… Corrected for one time impairment charge, Q4 FY’13 has seen the completion of “Turnaround” of TSTH

EBITDA (THB Mn) PBT(THB Mn)

PAT (THB Mn) Cash Profit (THB Mn)

Includes impact of impairment / obsolescence 3600 MB

Qtr4 FY'12 Qtr4 FY'13 Qtr4 FY'13 underlying

67

345 345Qtr4 FY'12 Qtr4 FY'13

Qtr4 FY'13 underlying

(222)

(3538)

62

Qtr4 FY'12 Qtr4 FY'13Qtr4 FY'13 underlying

(240)

(3556)

44

Qtr4 FY'12 Qtr4 FY'13 Qtr4 FY'13 underlying

1

273 273

Includes impact of impairment / obsolescence 3600 MB

15

Responding fast to demand recovery in construction, TSTH rebar domestic sales have increased by 12% in Fy 13 over Fy12

Sa

les

Vo

lum

e in

KT

R

ev

enu

e in

Billio

n B

ah

t Revenue recovery in domestic sales with best ever H2 Fy13 performance

Fy 11 Fy12 Fy13

1128Kt 1056 Kt 1128 Kt

Q1 FY'11 Q2 FY'11 Q3 Fy'11 Q4 FY'11 Q1 FY'12 Q2 FY'12 Q3 FY'12 Q4 FY'12 Q1 FY'13 Q2'FY'13 Q3 FY'13 Q4'FY'130

50

100

150

200

250

300

350

400

0

1

2

3

4

5

6

7

8

9

250291 279

309 300 291

200

266230

284 290 298

47

41

20

5229

18

18

17

27

1119.7 13.1

6.19

6.76

5.95

7.85

7.557.12

5.03

6.48

5.9

6.386.21 6.37

Imp Vol(KT) Domestic Vol(KT) Revenue in BB

Domestic Sales

Export Vol (KT)

16

*

% High end Mix has taken a slight dip due to Chinese imports … expecting to see improvement post AD help

Tata Steel (Thailand) successfully launched and delivered Seismic resistant Rebars for Earthquake prone areas - First time in Thailand

FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 -

50.0

100.0

150.0

200.0

250.0

300.0

350.0

-5%

0%

5%

10%

15%

20%

25%

30%

15%16%

19%

23%28%

26%

SBQ Cut & Bend Small Section Special WR Product Domestic Sales% Total Sale

Marginal drop in volume due to impact on SPWR from cheap

imports

17

TSTH has strengthened its leadership position in Rebars,

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12009 CY 2010 CY 2011 CY 2012 CY 2013

CY

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

0%

10%

20%

30%

40%

50%

60%

247,969 222,766

385,884

819,112

623,439

209,056

384,484 418,033

388,488

452,859

591,381

265,075

460,572

414,737 373,102

495,339 500,288

115,238132,191

153,656 152,677189,371

128,700159,152 156,850 169,830 174,324

155,053

98,155138,310

106,403

157,046174,347 186,318

46%

59%

40%

19%

30%

62%

41%38% 44% 38%

26%

37%

30%

26%

42%35% 37%

29%

36%

38%

40%42%

31%

37%

37%

34%

38%

33%

26%

28%

24%

32%

34% 34%

Dom. Rebar Martket Consumption (ISIT) TSTH Rebar Sales (Rebar+CAB) MS% (ISIT)MS% (Cement+OIE)

18

…while, its share in Wire rods has dropped due to imports

Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q12010 CY 2011 CY 2012 CY 2013 CY

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

10%

15%

20%

25%

30%

35%

387,185

105,381

401,935

134,548

404,077

96,912

355,623

86,701

410

80,682

443,851

99,637

343,755

72,384

427,901

80,786

448,196

81,522

431,793

85,840

458,211

61,119

533,199

60,295

491,757

66,344

64,81079,493

98,606 97,711 81,932127,540

83,504148,923 141,509 140,170 194,980

298,372 260,345

19

Post impairment at one of its subsidiaries, TSTH aims to maintain its improvement trend in Fy14

EBIDTA (THB Mn) PBT(THB Mn)

PAT (THB Mn) Cash Profit (THB Mn)

Includes impact of impairment / obsolescence +DTA w/o 3886 MB

FY'12 FY'13 FY'13 underlying

258

642 642FY'12 FY'13 FY'13 underlying

(1350)

(4219)

(620)

FY'12 FY'13 FY'13 underlying

(1581)

(4556)

(670)

FY'12 FY'13 FY'13 underlying-353

258 258

Includes impact of impairment / obsolescence 3600 MB

Note : Fy 12 figures include one time impact

20

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Global & Thailand in

Q4 FY’13.

• TSTH Performance in Q4 FY’13 & Fy13

• Business Outlook for FY’14 Tata Steel(Thailand)

21

Business outlook & guidance for Fy14

While, steel market remains challenging in 2013, we expect Thailand to be resilient and construction growth will help drive steel demand. Imports from China remain our single biggest concern and we expect a definite support from MoC to protect the survival of Thai longs steel industry.

Continuing on its path of steady improvement over the last 5 quarters, TSTH has registered a PBT positive performance in Q4 Fy13 thereby signaling a successful turnaround of its underlying business operations. It shows the result of company’s focused approach, tight vigil on working capital and return of confidence of its people in making a value creating steel business.

Post the “impairment” in its loss making subsidiary, TSTH is well positioned in terms of strength of its balance sheet. Our liquidity is robust to meet the debt obligations and we are now singularly focused on improving the utilization of our competitive assets. Notwithstanding the price volatility being witnessed by the steel business in SE Asia, on the back of operations and commercial excellence, we remain confident to turn in a higher EBITDA performance in Fy14.

22

Keeping improvement momentum of Q4 Fy13, TSTH estimates a PBT+ve performance in Fy14

1. Improve sales by 10% to reflect construction growth (can be higher if AD help comes)

2. Continue focus on high end product mix at 25 % of sales with Cut & bend products, Seismic rebars, special wire rods & sections

3. Enhance EBITDA to make value creating steel business.

Focus areas for Fy14

23

Thank You