Tata Steel (Thailand)

Welcomes

Financial Analysts

9th August, 2012

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Thailand in Q1 Fy13.

• TSTH Performance in Q1 Fy13

• Business Outlook for Q2 - FY’13

Tata Steel(Thailand) 1

Safety & Environment : First ever quarter in 6 years to have zero LTIFR

2 Tata Steel(Thailand)

• Strengthened Safety and Environment management across all sites

• Effective handling of the situation arising out of blast at BST (neighbouring site) in May 2012.

Lost Time Injury Frequency Rate (LTIFR) CO2 EMISSION RATE

FY'09 FY'10 FY'11 FY'12 Q1 FY'130.000

0.200

0.400

0.600

0.800

1.000

1.200

0.570

0.827

0.961

0.814

0.605

Good

FY'10 FY'11 FY'12 Q1 FY'130

0.5

1

1.5

2

2.5

3

3.5 3.24

1.310.770000000

000001

0

Good

4

1. “Grow Smart with Tata Steel” Project aimed to encourage the self learning system for the children in the rural areas – will help sustainable development of communitiesCovered 138 Schools in 27 provinces till date. Plan

to cover 400 schools across Thailand.

The book corners for 139th – 143rd schools will be

handed over in September 2012.

2. “Environmental Conservation” TSTH pays attention to use the natural resources efficiently, as well as managing the surrounding environment. N.T.S. staffs organized an Environmental Preservation Project on an occasion of National Tree Day.3. “Serving communities around us” Providing medical care , safety and vocational training to residents.

Corporate Citizenship: Responsibility towards Society

4. “Supporting non-profit organizations” support local government office.

TCOC :• Conducting business with integrity and transparency across all functions.

• 95% employees are formally trained on TCOC.

• Regular Communication on TCOC with talk in Thai language for thorough understanding

Corporate Citizenship: Responsibility towards Society

Continue communicate to employee about linkage between current events and TCoC.

TCoC Monthly Newsletter

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Thailand in Q1 Fy13.

• TSTH Performance in Q1 Fy 13

• Business Outlook for Q2 - FY’13

Tata Steel(Thailand) 5

1. Eurozone crisis and China slowdown having an effect on Thailand. 2. Recovery still dependent on completion of announced schemes within

Sept before new budget comes into effect. 3. Inflation and interest rate is stable.

Tata Steel(Thailand)

Thailand GDP expected to recover from floods to register 5-5.5% growth …however, just 3.3% growth in Q1Fy13

GrowthYOY 5.4% 2.5% - 2.2% 7.8% 0.1% 5.5% f/c

Flood

Q1 Q1 Q1 Q1 Q1 Q1

-10

-5

0

5

10

15

-10

-5

0

5

10

15

4.6 4.55.3 5.3

6.45.2

2.9

-4.2

-7.1

-4.9

-2.7

5.9

12

9.2

6.6

3.8 3.2 2.73.7

-8.9

0.3

3.3 3.6

8.6

GDP Y.O.Y%

2007 2008 2009 2010 2011 2012

Forecast

6

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Thailand in Q1 Fy13.

• TSTH Performance in Q1 Fy13

• Business Outlook for Q2 - FY’13

Tata Steel(Thailand) 7

8

Jan – May 2012 consumption is in line with annual estimates but inordinate import growth is a worry

ISIT : Iron & Steel Institute of Thailand

2012

5000(Estimate)

LPQ1

CY’11Q1

CY’12

P 961 991

I 443 526

E 191 196

Con 1213 1320

Higher imports phase

2003 2004 2005 2006 2007 2008 2009 2010 2011 -

100,000

200,000

300,000

400,000

500,000

49,216 63,262 75,457 72,908

78,732 114,685 125,240

302,275

396,571

331,398

313,260

365,774 409,815

467,737

421,356

295,500

332,521

280,606

HS Code 722790

HS Code 721391

tons

Alloy SteelCarbon Steel

Specially, imports from China have increased in last 1 year … with a significant increase in Alloy steel category

1. Importers taking advantage of Zero duty on Alloy steel v/s Carbon steel at 5% and importing Carbon steel wire rods with Chromium and Boron addition.

9 Tata Steel(Thailand)

Chinese Import Price Trend

Tata Steel(Thailand) 10

B1Apr

-11

B1Jun

-11

B1Aug

-11

B1Oct

-11

B1Dec

-11

B1Feb

-12

B1Apr

-12

B1Jun

-12

B1Aug

-12

550

600

650

700

750

800

755750

760 760755

775 775

722

705700

695690

685

710

695

670

650

HC Imports Price ($)

B1Apr

-11

B1May

-11

B1Jun

-11

B1Jul-

11

B1Aug

-11

B1Sep

-11

B1Oct

-11

B1Nov

-11

B1Dec

-11

B1Jan

-12

B1Feb

-12

B1Mar

-12

B1Apr

-12

B1May

-12

B1Jun

-12

B1Jul-

12

B1Aug

-12

580

600

620

640

660

680

700

720

740

760

780

800

730720 720 720

740

760 760

720

680 680690 690 690

680

650

620

600

LC Imports Price ($)

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12HC Imports Price ($) 755 750 760 760 755 775 775 722 705 700 695 690 685 710 695 670 650

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12LC Imports Price ($) 730 720 720 720 740 760 760 720 680 680 690 690 690 680 650 620 600

11

… these imports have adversely impacted Wire rods and bars prices and volumes

ISIT : Iron & Steel Institute of Thailand

Long ('000 Tonne) Jan-May'11 Jan-May'12 Change '12/'11Production 1,555 1,637 5.3%

Import 793 896 13.0%Export 371 368 -0.8%

Apparent Consumption 1,976 2,166 9.6%

Import 2011 2012% Jan-May % May

Jan Feb Mar Apr May Jan Feb Mar Apr May (12/11) (12/11)

Billet

183,311 79,659 64,491 49,443 53,432 81,673 100,700 132,617 113,925

109,321 25% 105%

Slap

208,236 161,679 139,426 239,487 161,175 184,863 174,028 112,083 207,029

182,198 -5% 13%All other semi(s)

5,462 20,422 5,101 13 8,050 13,187 25,247 48,329 38,702

156 222% -98%

Bars

48,130 41,771 50,064 56,556 39,602 54,101 42,242 69,866 44,572

55,471 13% 40%

Section 2,912 1,756 3,800 1,506 1,884 1,942 3,174 3,425

2,510

2,479 14% 32%

Wire rod (LC/HC)

57,714 42,945 61,955 81,593 70,139 78,319 51,107 93,604 67,156

106,638 26% 52%

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Thailand in Q1 Fy13.

• TSTH Performance in Q1 Fy13

• Business Outlook for Q2 - FY’13

Tata Steel(Thailand) 12

297 332 300 362 329 309 218 283 258

6.19

6.76

5.96

7.85 7.55

7.12

5.03

6.48

5.90

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

-

50

100

150

200

250

300

350

400

Q1-FY11 Q2-FY11 Q3-FY11 Q4-FY11 Q1-FY12 Q2-FY12 Q3-FY12 Q4-FY12 Q1-FY13

Volume in KT Revenue in Billion Baht

13

Revenue & Volume Performance : Domestic + Export

Sale

s Vo

lum

e in

KT

• Accident at a site near SCSC has affected the rebar sales in Q1 Fy13.

• Chinese imports have caused serious injury in Q1 Fy 13.

Revenue in Billion Baht

258

Market leader in main Long products

1. Tata TISCON rebar sales affected by accident at a neighbouring site in May 12.

2. Special Wire Rods volume under pressure due to Chinese imports

Wire Rods

14 Tata Steel(Thailand)

Market Position : #1 Market Position # 1

Source : Market demand : ISIT & Office of Industrial Economics TSTH Sales : Company source

Market share %

Market share %

Richer Product Mix helping revenue%

of Total dom. Sales

• Special Bar Quality (SBQ) sales have been affected by Chinese imports.• Tire Cord trials look promising (only Thai company to make)

15 Tata Steel(Thailand)

Volu

me

in K

T

15%16%

19%

23%

28% 30%

0%

5%

10%

15%

20%

25%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY08 FY09 FY10 FY11 FY12 Q1-FY13

SPWR SS C&B SB % of Total Sale

17

1) Revenue : June 12 adversely affected owing to accident at SCSC.

2) Contribution : Q1 Fy13 better than Q4 Fy12.

3) EBITDA : Steady improvement in EBITDA over Q4 Fy12 however getting affected by increase in imports from China

Turnaround momentum maintained with better than Q4 Fy12 results in Q1 Fy13 despite “accident at SCSC”

Description Unit Q1 Q4 Q1FY'12 FY'12 FY'13(Act)

FG Production (ton) 327,862 298,604 243,929 Sales (ton) 329,357 282,800 257,827

Turnover (MB) 7,496 6,438 5,856 NR (B/T) 22,760 22,767 22,714

Metallic (B/T) (15,065) (14,372) (14,020) VCOGS (B/T) (20,980) (21,381) (21,118) Contri (B/T) 1,780 1,386 1,596 Contri (MB) 586 392 411

Fxd Cost-Depre (MB) (265) (222) (224) Fxd Cost-Others (MB) (302) (391) (377)

PBT Overall (MB) 19 (222) (190) PAT Overall (MB) 2 (240) (201)

EBITDA Overall (MB) 356 67 117 Cash Profit (MB) 284 1 34

Agenda

• Safety, Environment & Corporate

Citizenship

• Economic Situation.

• Steel Business in Thailand in Q1 Fy13.

• TSTH Performance in Q1 Fy13

• Business Outlook for Q2 - FY’13

Tata Steel(Thailand) 17

TSTH expects a better Q2 & second half on the back of economic recovery … expects Govt support to stop Chinese imports.

• Improvement in production by +23% in Q2 over Q1.

• Higher Sales by +16% in Q2 over Q1.

• Maintain high end product sales mix at 30%.

• Stay EBITDA +ve & Cash profit +ve.

• Looking at strategic partnership options at NTS

"Market conditions in the first half of the calendar year have been challenging due to slow recovery in domestic demand and increasing imports from China. Against this backdrop, company has delivered further improvement in its underlying EBITDA over Q4 Fy12 and has come into cash profit in Q1Fy13.

Although the global economy remains fragile, we expect Thailand to be resilient and construction demand should kick in. While imports remain our biggest concern, for the remainder of the year, we will continue to remain alert in operations to take advantage of the market opportunities that will come up as price recovery happens and deliver a sustained cash profit performance".

19

Comment from TSTH

20

Thank You