Consolidated Financial Results

Quarter Ended 30th June 2010

Analyst Meet – Mumbai

August 13 , 2010

A Corporate Citizen 1
A global player A product pioneer
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

2
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

3
 Tata Steel Group – Safety Performance
Lost Time Injury Frequency (LTIF)
3.5

Lost time injury frequency rate was 0.65,
3.06
3
a 22% improvement over average FY10
2.5 2.35
2.1
On track to achieve our vision target of 0.4
2

In the June’10 quarter, 1 tragic fatality
1.5 1.31
occurred at Scunthorpe in UK
0.95
1
0.65
H&S teams are being established across
0.5

the group to further accelerate learning and

0
YE Mar'06 YE Mar'07 YE Mar'08 YE Mar'09 YE Mar'10 QE Jun'10
improve risk control systems

4
 Group Financial Highlights – Quarter Ended
30th June’10
Deliveries Mn T 7,000 Turnover US$ Mn
5,856
7.00 6,000
6.05 5,016
6.00 5.35 5,000
5.00
4,000
4.00
3,000
3.00
2,000
2.00
1.00 1,000

0.00 -
Jun'09 Jun'10 Jun'09 Jun'10

EBITDA US$ Mn PAT * US$ Mn

1,200 500
393
975 400
1,000
300

800 200
100
600 -
-100 Jun'09 Jun'10
400
-200
200
44 -300
-400
-
-500
Jun'09 Jun'10 -600 -476 5
Conversion Rate USDINR – 46.44 ; * PAT after Minority Interest and Share of Associates
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

6
Global steel market has returned to pre-
crisis levels – due to China

Macro economy Global Crude Steel Consumption & Capacity Utilisation
Mt
2010-11 Per cent
 Global recovery has continued, but 130
2007-08 2008-09 2009-10
100
Capacity Utilisation (RHS)
signs of slowdown in China 120
95
90
 Recovery in Europe has continued 110
85
but has been slow 100 80

75
 India’s growth remains robust 90 Crude Steel Consumption (LHS)
70
80

Global steel market 65
70
60
 Global steel consumption was up
60 55
45% YoY in the June’10 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10
quarter, with continued strength in Crude steel production (Index, April 2007 = 100)
160
China and India and end of
destocking in mature markets 140

 Steel using sectors likely to slow in 120

coming quarter as inventory 100

adjustment boost and fiscal stimulus
80 EU27 CIS
wanes USA China
60 India
 Increased uncertainty around near-
term outlook in China and further 40
Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10
slowdown is expected with policy
tightening having an impact Source: World Steel Association
7
Global steel prices have declined in recent
months HRC price, US$/tonne
1,400 India (Mumbai)

Price developments Chinese domestic (incl VAT)
1,200 USA domestic (FOB Gulf)
Russia export (FOB Black Sea)
 Steel spot prices have eased in 1,000 Germany domestic

800
recent months
600

 Reflects signs of a slowdown in 400

200
China, seasonal weakness and Jan-07 Jan-08 Jan-09 Jan-10

Rebar (US$/tonne)
market uncertainty 1,600 East Asia import (CFR)
Chinese domestic (incl VAT)
1,400 USA domestic (FOB Midw est)
CIS export (FOB Black Sea)
 Indian steel prices recently have 1,200 Germany domestic

1,000
shown an uptick 800

600

400

200
Jan-07 Jan-08 Jan-09 Jan-10

Source: CRU
8
Raw material contract prices higher in
September quarter but spot prices lower

Raw material developments
 Quarterly iron ore contracts rose in
Iron ore fines price (US cents/tonne)^
250
Indian spot CIF China
Australia contract CIF China
200 Australia contract FOB

June quarter and further in 150

September quarter
100

$140/tonne*
 Iron ore spot prices have stabilised 50

in recent weeks, following large

0
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10
falls from April peak but remain *Spot price early August. ^Not adjusted for quality or other premium

below September quarter contract Premium hard coking coal price (FOB Australia) (US$/tonne)
450
Spot FOB Australia
prices 400
Contract FOB Australia
350

 Quarterly coking coal contract price 300

250
also higher in September quarter 200

150

 Coking coal spot price at levels 100

50
slightly below contract price 0
Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10

Source: CRU, Tata Steel Group

9
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

10
European economic environment remains
uncertain

Economic Update European GDP (quarterly, Y/Y % change)
Mt
6

 Recovery is continuing but has been 4

tentative so far 2

 Southern Europe lagging Northern -2

Europe -4
UK Spain

-6 Germany Eurozone

 Recovery so far has benefited from

-8
Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10
temporary boost from inventory
European Public Debt and Fiscal Deficits (% of GDP)
adjustment and previous fiscal stimulus Public Debt (%)
160

140

Significant headwinds remain Greece
120
Greece
 Sovereign debt and fiscal crisis not fully 100
Deficit Reduction Plans
Spain UK
80 Germany UK
resolved and large spending cuts 60 Germany Spain
pending/ underway 40

20 2010 2015

 Unemployment is high 0
0 2 4 6 8 10 12
Fiscal deficit (%)

 Bank lending remains weak

Source: Thomson Datastream, Oxford Economics 11
European steel consuming sectors are
recovering but from a low base
Purchasing Managers Index – EU sectors
70 Above 50 = Expansion

End-use sectors recovering, but
from a low base 60

 UK auto production is forecast to grow 50

by 24% in 2010 40 Engineering

Automotive
30
 EU industrial engineering continues to
Below 50 = Contraction

recover 20
00 02 04 06 08 10

 Construction remains generally weak Purchasing Managers Index – UK & EU construction

70
Above 50 = Expansion

60

Macro risks
50

 Slowdown in China will impact

40 UK

European engineering exports EU

30

 Construction at further risk from Below 50 = Contraction

20
Government spending cuts 00 01 02 03 04 05 06 07 08 09 10

Source: Markit
12
European steel market stronger in the June
quarter, but has softened in September quarter
European Steel Service Centre Physical Strip Product Stocks
Mt Months supply

Market update 2.6 3.4

Stock levels 3.2

2.4
 European steel consumption was up 3.0
Months
2.2
supply
33% YoY in June quarter 2.8

2.0 2.6

 Key steel consuming sectors, except 1.8

2.4

2.2

construction, are recovering 1.6

2.0

1.4 1.8
 Stocks remain low in absolute terms Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09

Imports into EU27

 European steel prices have declined in 4
Imports (mt) Share (%)
25

Import
recent months share
20
3

Imports 15

2
 Imports into EU remain relatively low 10

and import share has fallen 1

Imports 5

 EU27 remains a net exporter, which 0 0

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10

helping to support capacity utilisation

Source: EASSC, Eurofer
13
 Turnaround Story – Tata Steel Europe
Production Mn T Deliveries Mn T
4.00 3.74 4.00 3.71
3.50 3.50 3.11
3.00
2.84 3.00
19%
32%
2.50 2.50
2.00 2.00
1.50 1.50
1.00 1.00
0.50 0.50
0.00 0.00
Jun'09 Jun'10 Jun'09 Jun'10

Turnover US$ Mn EBITDA US$ Mn

4,500 400
3,814 293
4,000 300
3,500 3,279 US$ US$
200
3,000 535 692
100
2,500 Mn Mn
-
2,000
1,500 -100 Jun'09 Jun'10
1,000 -200
500 -300
-
-400
Jun'09 Jun'10 -500 -399

Conversion Rate USDINR – 46.44 14

 Operating Performance Trend – Tata Steel
Europe Production, Deliveries & Turnover
7.0 6.4 7,049 5.6 8,000
7,096
6.0 5.2 5,623 7,000
4.9 4.3 6,000
5.0 4.2
3,825 4.0 3.8 3.7 3.8 3.7 3.7
4.0 3.4 3.6 3.7 5,000
2.8 3.1 4,000
3.0
2.7
3,279 3,611 3,608 3,680 3,814
3,000
2.0 2,000
1.0 1,000
0.0 -
Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 Mar'10 Jun'10

Production (Mn T) Deliveries (Mn T) Turnover (US$ Mn)

1500 EBITDA & PBT

1044
1000 802 758
433 380 354
500 293
88 142 70
38
0
Jun'08 Sep'08 Dec'08 Mar'09 Jun'09 Sep'09 Dec'09 Mar'10 Jun'10
-152
-500 -308 -388
-399

-1000
-715
-831

-1500 -1,318
Conversion Rate USDINR – 46.44 15
EBITDA (US$ Mn) PBT(US$ Mn)
 Quarterly Trend in Tata Steel Europe
Average Selling Prices US$ / T Raw Materials Costs Per Tonne
400 US$ / T
356
1,200
1,008 350 319
1,000 924 300
9% 12%
800 250
200
600
150
400
100
200 50
- 0

Mar'10 Jun'10 Mar'10 Jun'10

Deliveries Mn T EBITDA US$ Mn

4.0 3.8 3.7
3.5 400 354
3.0 2% 350 17%
293
2.5 300

2.0 250
200 Drop In EBITDA due to:
1.5
1.0 150
100
a) IJmuiden Fire
0.5 b) Adverse Currency
50
- movement due to £
0
Mar'10 Jun'10 depreciation in the
Mar'10 Jun'10 Jun’10 quarter

16
Conversion Rate: GBPUSD – 1.4569 & USDINR – 46.44
 Operating Performance – Tata Steel Europe
Strip Products Long Products Distribution &Building
Deliveries (MnT) 1.2 Deliveries Exc TCP(MnT) TCP Sales Deliveries (MnT)
2
1.0 1.2
1.8 1.0 0.9 1.0 1.1
1.8
1.6 0.2 1
1.0
1.6
0.8
0.1 0.9
1.4
1.2
1.2 0.8
0.6
1 0.6
0.8 0.4 1.0
0.6 0.8 0.8 0.4
0.4 0.2 0.2
0.2
0 0.0 0
Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10

Steel Capacity Utilization

100% 90%
90% 80%
80%
70%
60% 53%
50%
40%
30%
20%
10%
0%
Jun'09 Mar'10 Jun'10
17
Capacity Utilization is restated for the previous quarters excluding production at TCP
Positioning for the future: “One Company”-
Tata Steel Europe

Customer First
Customers & markets  Group Marketing function established

 Marketing sales and distribution teams

aligned directly with key market sectors
Sales &marketing sector teams

Supply Chain Project

 Pan-European integrated supply chain

optimisation
Supply Chain

Operations Efficiency

 Steel production organised around three

hubs with manufacturing optimised
Strip MLE Strip UK Long EU
throughout Europe

 Pilot launched in Long EU operations hub

Implementation in a phased and structured manner

Operations hubs 18
Outlook for Tata Steel Europe

Long-term recovery in most steel using sectors is continuing, particularly engineering

and automotive. Outlook for construction remains weak in the near term

However, some softness currently being experienced in European apparent demand

and steel prices due to summer period and market uncertainty. Meanwhile, European

sovereign debt / banking sector concerns and Government’s aggressive fiscal cuts

present an additional risk to the outlook

Raw material contract prices have risen for both iron ore and coking coal for the

September quarter. Spot prices are currently below contract prices, however the

outlook remains uncertain

19
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

20
Indian & South East Asian Steel Market
Indian Steel Consumption Vs Production

Indian Market update Million tonnes per quarter Up 16.6 per cent Y/Y
16 Up 7.2 per cent Y/Y Up 4 per cent Q/Q
 Indian steel using sectors remain strong 14
Down 5.2 per cent Q/Q

 World Steel forecasts Indian apparent 12

10

finished steel consumption to rise by 8

13.9% to 63 mmt in FY10 6

 Domestic market remains tight as supply 2

Mar 10 Jun 10 Jun 09 Mar 10 Jun 10 Jun 09
0
response remains constrained Production Consumption

 India continues to be net importer of steel Indian Steel Imports Vs. Exports
3.0
Million tonnes per quarter
Up 80 per cent Y/Y Down 21 per cent Y/Y
2.5 Up 44 per cent Q/Q Down 48 per cent Q/Q

South East Asian Market update
2.0
 Recovery in activity continues in South
1.5
East Asia
1.0
 Chinese steel market is showing clear
signs of slowdown 0.5

Mar 10 Jun 10 Jun 09 Mar 10 Jun 10 Jun 09

0.0
Imports Exports

21
Source: Tata Steel Group
 Operating Performance – Tata Steel India
Mn T
Production Mn T Deliveries
1.80
1.54 1.69 1.59 1.80 1.70
1.60 1.60 1.42 1.40
1.40 1.40
1.20 1.20
1.00 1.00
0.80 0.80
0.60 0.60
0.40 0.40
0.20 0.20
0.00 0.00
Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10

Turnover US$ Mn EBITDA & EBITDA/T* US$ Mn /US$

900
1,800
1,580 775
800
1,600 1,411 700 638
1,400 1,209 600
1,200 453
500 390
1,000 385
400 269
800
300
600
200
400
100
200
-
-
Jun'09 Mar'10 Jun'10
Jun'09 Mar'10 Jun'10

Conversion Rate USDINR – 46.44 ; *EBITDA / T excludes Profit on Sale of Investments 22

 Steel Division – Tata Steel India

Flat Products Long Products

1000 946 800 753

900 848 700 671
733 785 803 622
800 601 614
637 600 570
700
500
600

500 400

400
300
300
200
200
100
100

0 0
Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10

Sales Tonnage ('000 T) Net Realisation (US$/T) Sales Tonnage ('000 T) Net Realisation (US$/T)

Conversion Rate USDINR – 46.44 23

 Ferro Alloys & Minerals Division – Tata Steel
India
1600 50
1,437
45
Capacity Utilization rates of Stainless Steel mills &
1400 44
1,152 40
1200 1,091 1,094 Fe Cr production has increased YoY and QoQ.
35
1000
847 30 30
However, due to seasonal production cuts and
800 25
25 restricted demand in China , drop in demand is
600
16 20

445 406 15
400 347 witnessed in recent times. Demand is expected to
309 302
10
200 revive from Sep’10 onwards
5
4
0 -
Jun'09 Sep'09 Dec'09 Mar'10 Jun'10
Ferro Chrome prices are likely to remain firm , with
Ferro Alloys Deliveries ('000t)
an expected increase in prices towards end
Ferro Alloys FAMD Ferro Chrome NR (US$/t)
Ferro Alloys FAMD Operating Profit (US$ Mn)
Sep’10

Ferro Chrome NR in Jun’10 is 109 c/lb

24
Conversion Rate USDINR – 46.44
 Key Events & Awards

CSR Excellence Award 2010 by ASSOCHAM (Associated Chambers of Commerce &

Industry of India)

FE- EVI Green Business Leadership Award in the iron & Steel category for the year

2009-10

Five HR awards by ‘Asia’s Best Employer Brand Awards 2010’ for Talent

Management, Best HR Strategy in line with Business, Excellence in Training, CEO with HR

Orientation and HR Leadership Award

Rashtriya Khel Protsahan Puruskar-2010 award for outstanding contribution in the field of

sports in the category of ‘Financial Support for Sports Excellence’

Received prospecting license for iron ore in Ankua region in Jharkhand for our

expansion programmes
25
 Operating Highlights – South East Asia
Deliveries Nat Steel EBITDA
US$ Mn

Mn T 25
20
0.70 0.61 20
0.60 0.54 0.57
0.50 15
0.40 9 10
10
0.30
0.20
5
0.10
- -
Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10

Tata Steel Thailand

Deliveries EBITDA
0.40 Mn T US$ Mn
0.34 13 12
0.35 12
0.30 11
0.30 0.26 10
0.25 9
8
0.20 7
6
0.15 5
4 3
0.10 3
0.05 2 1
1
- -
Jun'09 Mar'10 Jun'10 Jun'09 Mar'10 Jun'10
26
Conversion Rate USDINR – 46.44
 Outlook – Tata Steel India & S.E. Asia
Tata Steel India

Company’s ambitious 3 Mtpa Brownfield expansion at Jamshedpur is on schedule

Domestic steel demand shows strong momentum driven by strong recovery in steel intensive
sectors such as auto, construction and infrastructure.

Indian steel market remains tight in 2010

Declining Chinese exports in 2H 2010, raises higher possibility of regional price rise on tighter
demand and supply balance

Natsteel

Construction activity in Singapore is expected to continue steady recovery, with activity forecast
up 4.7% in 2010 and 8.0% in 2011

Thailand

Thailand shows recovery despite the lingering political crisis. The export led pattern of growth and
continuing rise in private sector investment should result in expansion of output by supporting
industries such as auto parts makers and component suppliers
27
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

28
 Group Financial Performance – Q1 FY11
Figures in US $ Mn unless specified

Tata Steel TS NSH* TSTH Tata Steel

Europe Group(**)

Deliveries (Mnt ) 1.399 3.710 0.609 0.297 6.049

Turnover 1,411 3,814 375 188 5,856

EBITDA 638 293 20 12 975

EBITDA margin (%) 45.2 7.7 5.3 6.4 16.6

EBITDA / tonne (US$) 456 79 33 40 161

PBT 508 70 8 2 601

PAT 340 33 11 1 393

(*) NSH shows Steel Operations (**) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group (***) Conversion
Rate USDINR – 46.44
29
Group EBITDA Trend
US $ Mn

44 87 732 1,148 975

1,200

1,000

800

600 1,024
971
400
646

200
40 79 4
4 87 125
- 8
Jun'09 Sep'09 Dec'09 Mar'10 Jun'10

Profit on Sale Of Investments(US$ Mn) Operational EBITDA (US$ Mn)

Reported EBITDA

30
Conversion Rate : USDINR - 46.44
EBITDA Trend – Tata Steel India
US $ Mn

385 430 521 775 638

900

800

700

600

500

400
662 634
300
503
200 381 430

100
113 4
- 4 18
Jun'09 Sep'09 Dec'09 Mar'10 Jun'10

Profit on Sale Of Investments(US$ Mn) Operational EBITDA (US$ Mn)

Reported EBITDA

31
Conversion Rate : USDINR - 46.44
EBITDA Analysis – Tata Steel Europe
Figures in US $ Mn unless specified

Q4 FY10 Q1 FY11
Reported EBITDA 354 293
Add/(Less): Translation impact Q-o-Q on account of - 42
depreciation of £`
`

Add: Impact on account of fire at IJmuiden in Jun’10 - 15

quarter (Increased Maintenance)

Add/(Less): Loss/(Gain) Foreign Exchange Revaluation (6) 40

Impact on Loans

Underlying Operational EBITDA 348 390

Deliveries (Mn T) 3.8 3.7

Underlying Operational EBITDA /T ($) 92 105

32
Group Debt Position
US $ Mn
Gross Debt Net Debt

11,434 11,804 9,551 9,843

12,000
14,000

12,000 10,000
774 935 522 644
10,000
8,000

8,000 5,225 5,126 4,661 4,477

6,000
6,000 Increase in Gross
Debt primarily on
4,000
4,000 account of working
capital financing
5,435 5,743 4,722
2,000 2,000 4,368

- -
Mar'10 Jun'10 Mar'10 Jun'10

Tata Steel India Tata Steel Europe Others Tata Steel India Tata Steel Europe Others

(*) Others include JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group
33
Conversion Rate : USDINR - 46.44
Gross Debt Movement & Net Debt Position

34
Cash & Cash Equivalents include current investments
 Pensions- Tata Steel Europe
Surplus Pension Funds – BSPS & SPH
US$ Mn

800
681 646
700 636
600

500
388
400

300 268
200

100
Asset Mix in BSPS
0
120%
Jun'09 Sep'09 Dec'09 Mar'10 Jun'10
100% 2% 3% 2% 3% 2%
80%
66% 64% 64% 64% 65%
60%

40%
Aggregate size of BSPS as on Jun’10 4% 4% 4% 5% 6%
20%
quarter : £ 11 Bn 28% 29% 30% 28% 27%
0%
Jun'09 Sep'09 Dec'09 Mar'10 Jun'10

Equities Real estate Bonds Cash

35
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

36
Financing Portfolio & Capital Raising
 Raised `1,069.20 Crs (US$ 230 Mn) through preferential allotment issue of
Equity Raising
shares and warrants to Tata Sons in July’10

Debt  Tata Steel Europe prepaid £112.5 Mn in May’10

Pre/Repayment  Repaid `1,020 Crs (US$ 220 Mn) in Q1 FY11

 Contracted US$ 350 Mn loan for working capital purposes

 Finalized commitment to raise ` 3,000 Crs ( US$ 646 Mn), 20 year Non
Fund Raising
Convertible Debentures to fund the growth projects
 Steps taken to refinance part of Tata Steel’s Group debt

Portfolio  NatSteel Holdings Pte. Ltd. has sold its entire 27.03% stake in Southern Steel
Review Berhad, Malaysia to Signaland Sdn Bhd at a total consideration of ~US$ 72 Mn

 RML is raising capital of A$ 337 Mn through private placement of ~A$ 102 Mn

and non- renounceable rights issue of A$ 235 Mn
Other  Tata Steel maintains its holding at the pre-rights level of 21.15% by subscribing to
Developments
its share in private placement and the rights issue at an investment of around A$
72 Mn
37
 RML is taking steps which will find long term solutions to logistics
Agenda

Introduction and Consolidated Highlights

Global Business Environment

Performance of European Operations

Performance of Indian and South East Asian Operations

Group Financial Performance

Financing Portfolio and Capital Raising

Business Outlook

38
Business Outlook

Steel market fundamentals to remain cautious in 2H depending on Chinese

consumption. Modest recovery in steel pricing in end 2010 into 2011 as Chinese

demand is expected to improve due to reversal in policies and new investments made

US still in recovery mode and signs of regional weakness remained in Europe

A sustained period of high, volatile raw material prices is likely

Indian steel demand remains robust backed by strong GDP growth forecast of +8%.

Auto demand is expected to be 18-20% higher in FY11

Singapore & Thailand’s economy remain on track

39
Thank You

40