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

Tata Steel (Thailand) Welcomes Financial Analysts Team 14 th May, 2013. Agenda. Safety, Environment & Corporate Citizenship Economic Situation. Steel Business in Global &Thailand in Q4-FY’13 TSTH Performance in Q4- FY’13 & Fy13

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

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

  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’14 Tata Steel(Thailand)

  3. Safety & Environment : Best Ever Performance in FY’13 Good Good

  4. Community Welfare : Highlight in Q4 FY’13 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. . NTS Supported New Medical Center Project During March 19th – 21st, Granted 10,000 THB and 1,200 set of Tata Drinking Water for SomdejPhraboromRatchathevi Na Sriracha Hospital, under Royal Thai Red Cross Society, in order to support the new medical center project. “Grow Smart with Tata Steel” “Grow Smart with Tata Steel” book corner has been granted to 158 schools. In FY’14, CSRplans 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.

  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.

  9. In Thailand, Steel demand (LP+FP) grew by 12% in 2012 over 2011… but imports grew by 25% ! 5 % 12% ? ?? % 25% Forecast Irrational imports especially from China have caused big damage to the revenue of Thai steel producers… 8 Source : ISIT - Iron & Steel Institute of Thailand

  10. … & impact is severe in Long Products, where the import growth is 26% on a much smaller market ! 6 % 12 % ? 26 % Unfair imports from China in Wire rods & Bars have put an intense price & volume pressure – Emergency situation & help required to protect Thai long producers. Source : ISIT - Iron & Steel Institute of Thailand

  11. Quite evidently, 2012 has been a tough year for the steel companies across the world & in SE Asia Tata Steel(Thailand) 1

  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. Despite tough business conditions in 2012, TSTH has shown a remarkable recovery in Q4 Fy13 and in Fy13 … 3% 10% 5% Lower steel prices in 2012 v/s 2011 4% Tata Steel(Thailand)

  14. … Corrected for one time impairment charge, Q4 FY’13 has seen the completion of “Turnaround” of TSTH EBITDA (THB Mn) PBT(THB Mn) Includes impact of impairment / obsolescence 3600 MB PAT (THB Mn) Cash Profit (THB Mn) Includes impact of impairment / obsolescence 3600 MB

  15. Revenue recovery in domestic sales with best ever H2 Fy13 performance Export Vol (KT) Sales Volume in KT Revenue in Billion Baht Domestic Sales Responding fast to demand recovery in construction, TSTH rebar domestic sales have increased by 12% in Fy 13 over Fy12

  16. % High end Mix has taken a slight dip due to Chinese imports … expecting to see improvement post AD help Marginal drop in volume due to impact on SPWR from cheap imports Tata Steel (Thailand) successfully launched and delivered Seismic resistant Rebars for Earthquake prone areas - First time in Thailand *

  17. TSTH has strengthened its leadership position in Rebars,

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

  19. Post impairment at one of its subsidiaries, TSTH aims to maintain its improvement trend in Fy14 EBIDTA (THB Mn) PBT(THB Mn) Includes impact of impairment / obsolescence 3600 MB PAT (THB Mn) Cash Profit (THB Mn) Includes impact of impairment / obsolescence +DTA w/o 3886 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 Focus areas for Fy14 Improve sales by 10% to reflect construction growth (can be higher if AD help comes) Continue focus on high end product mix at 25 % of sales with Cut & bend products, Seismic rebars, special wire rods & sections Enhance EBITDA to make value creating steel business.

  23. Thank You

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