Tata Steel Group

C Consolidated lid t d Financial Fi i l Performance P f Year Ended March 31, 2009

Analyst Meet Mumbai June 26 , 2009

Agenda

Environment & Consolidated Highlights Performance of European Operations Performance of Asian Operations Tata Steel S Group G Financial Performance f

E i Environment t & Consolidated Highlights

Global Steel Industry

Unprecedented economic crisis globally Severe contraction in demand since October 2008 Significant production cuts especially in developed economies Continued de-stocking phenomenon across all geographies Raw material prices are coming down compared to 2008 China and India likely to demonstrate relatively stronger growth World stimulus package holds the key to sustainable recovery of global economy Tata Steel Group has responded with great speed with several initiatives to counter the slowdown

Consolidated Highlights
Deliveries ( (Mt) )
31.7 28.5 28,962

Turnover
25,857

US$ Mn

FY'09

FY'08

FY'09

FY'08

EBITDA
3,636 3,595

PAT *
2,428

973

FY'09

FY'08

FY'09

FY'08

Conversion Rate USDINR - 50.87 uniformly applied for all comparable periods ; * PAT after Minority Interest and Share of Associates

Managing the Crisis Key Highlights

India & S.E. Asia
Higher sales volume in India Increase of 18% in H2FY09 over H1 FY09 Manufacturing costs Decline by US$ 47/t in H2FY09 vs. H1 FY09 Focus on Performance Improvement in India yields US$ 167 Mn in FY09 P d ti cuts Production t i in Th Thailand il d i in H2 FY09 vs. H1 FY09 - 49% Capex Review to prioritize value creating Capex with accelerated benefits

Europe
Weathering the Storm initiative yields US$ 1,018 Mn in H2 FY09 Fit For F Future F t initiative i iti ti will ill lead l d to t annual l enhancement h t in i EBITDA US$ 286 M Mn

Recent Developments
Mozambique Project of Riversdale Resources declared 4 Bn Mt one of the largest resources of coal globally TS enhances its shareholding to ~15% in the listed entity, effective holding 44.75% MOU with Tata Power signed for a 51:49 JV p Will create a sustainable model for Tata Steels Netherland operations Acquiring 50% stake held by Ryerson Will provide id f full ll range b benefits fit t to T Tata t St Steel l on enlarged l d volumes l Consortium members renege on the off take agreement Arbitration process has commenced

IJmuiden Power Plant

Tata Ryerson

Teeside Cast Products

Performance of European Operations

Environment
Credit crisis leading to Economic crisis in Europe Contraction in auto, yellow goods and construction sectors resulting in demand collapse in Europe for steel Industry responded by significant production cuts to avoid over stocking Continued de-stocking in progress . Absolute level of stocks decline, Inventory Shipment ratio do not fall at the same pace Significant erosion of capital by banks leading to bank nationalizations Government stimulus packages announced to ensure renewal of industrial activity and credit flow 9

Operating Highlights - TS Europe

FY 2009 FY 2008

Liquid steel production (mt) Steel deliveries (mt) On time in full deliveries (OTIF %) E Energy consumption ti (GJ/t) Environment CO2 emissions (t/tls) Safety Lost time injuries (LTIF employees & contractors)

16 2 16.2 19.7 85 18 8 18.8 1.9

20 3 20.3 22.8 84 17 6 17.6 1.8

1.8

2.4

10

Key Highlights - TS Europe

EBITDA (US$ Mn)

1,751 1,788

EBITDA Margin (% )
9.1% 8.1%

FY'09

FY'08

FY'09

FY'08

Conversion Rate USDINR - 50.87 uniformly applied for all comparable periods

11

Response to the Crisis

Fl Flagship hi Initiatives: I iti ti Weathering the Storm Cash savings through cost avoidance Optimizing production capacity in a cost effective manner Unlocking value through favorable hedging contracts and surplus carbon credits

Fit for Future To create a more robust & sustainable business in the future Restructuring of facilities through consolidation Right sizing of manpower

Fit for Future II Restructuring g of Corus Tubes business to make it competitive p To align operating costs to current and future activity levels 12

Weathering the Storm Cash Savings

Annualized temporary fixed cost reduction
US$ Mn

1,234

y Fixed Cost Reduction Break down Temporary in FY10

Other,10%

OneoffItems, 13%

625
Logistics,4%

Manufacturing ,38%

393

Employment, 35%

Q3 FY'09

Q4 FY'09

FY'10 E

Conversion Rate : GBPUSD - 1.4300

13

Operating Performance - TS Europe

FY09
20.3 16.2 22.8 19.7 2.7 5.2 3.5

Mn T

Q4 FY09
5.7

Production
FY09

Deliveries
FY08

Production
Q4 FY09

Deliveries
Q4 FY08

Key Highlights in FY09 FY 09

Cost reduction of US$ 167/t of liquid steel output in H2 FY09 achieved through Weathering the Storm Finished goods inventory reduced from 3 3.4 4 Mn tonnes in Mar08 Mar 08 to 2 2.58 58 Mn tonnes in Mar09 Mar 09 Major capital schemes Replacement of the control system for hot rolling mill at Ijmuiden implemented. BOS Gas Recovery Project in Port Talbot on track C1 Programs IT implementation project , rolled out at major sites
* Europe - Liquid Steel Production

14

Operating bridge TS Europe

US$ Mn

Working Capital Release of US$1022 Mn in Q.E March09

270m 270m

Conversion Rate : USDINR - 50.87

15

Teeside Cast Products - Update

On 7th April, consortium members served notice of termination of the off take agreement

Arbitration process initiated 90 days consultation process with the unions initiated, to end on 6th August09

TCP has been EBITDA neutral to the Company

16

Proposed Power Plant at IJmuiden

MOU signed with Tata Power for setting up 525 MW power plant at IJmuiden on Build, Own and Operate (BOO) basis Th new plant The l t will ill provide id Ij Ijmuiden id with ith a secure, l long- term t source of f energy, thereby th b strengthening its competitive position Long term production gas supply agreement and a power purchase agreement with Tata Power will replace the part of the existing power supply arrangement Equity holding of the Joint Venture: Tata Power : 51% & Tata Steel : 49% Benefit of increased Carbon credits expected Commissioning expected around 2013

17

Fit For Future II

Restructuring of Corus Tubes Business Focus on Precision and Automotive activities in the Oosterhout and Zwijndrecht sites; resulting in closure of the Arnhem site and strech mill in Oosterhout Closure of cold drawn tube operation in Corby Reduction of shift activity levels at the Saw mills in Hartlepool Reduction in employment levels across units to bring about structural improvement in the cost base Aligning operating costs to current and future activity levels at Long Products Division Reduction in manpower, mainly at Rotherham & Scunthorpe Review of the overhead structure with focus on optimisation of support services

18

Performance of Asian Operations

19

Environment
S Sustained monetary easing by Central C Bank in India to boost private consumption and corporate investment Two Stimulus packages introduced by Govt. to boost infrastructure spending Landed cost of imported materials from CIS at a discount to domestic prices Construction & Auto sectors poised for recovery Indian Industrial Production (IIP) showing positive trend Singapore g p Government focusing g on stimulating g industrial activity y through g government sponsored projects. Steel consumption showing revival in Vietnam Political turbulence in Thailand continues to affect the economy
20

Operating Highlights - TS India

FY 2009 FY 2008

Crude steel production (mt) Steel deliveries (mt) On time in full deliveries (OTIF %) S Specific ifi E Energy consumption ti (G (Gcal/tss) l/t ) Environment CO2 emissions (t/tcs) Safety Lost time injuries (LTIF employees & contractors)

57 5.7 5.2 80 66 6.6 2.1

50 5.0 4.8 77 67 6.7 2.1

0.8

1.7

21

Key Highlights - TS India

EBITDA (US$ Mn)

1,856 1,623

EBITDA Margin (% )
43% 39%

FY'09

FY'08

FY'09

FY'08

Conversion Rate : USDINR - 50.87; FY08 figures are based on Proforma numbers

22

Response to the Crisis India & S.E. Asia

Tata Steel India
Cost reduction of US$ 47/t through performance improvement measures undertaken to maximize margins Increase in turnover (US$ 1,402 Mn) of branded products to gain premium and market share

Nat Steel Asia

Maximize plant capacity with cheaper domestic scrap and minimize rebar imports Reduced working capital by around US$ 150 Mn in 6 months and preserving cash by postponing capital expenditure. No long term debt liabilities on its Balance Sheet Continue to reduce operating & overhead costs & Optimize product mix by selling higher downstream tonnages Improvement initiatives to lead to yield improvement and reduction in power consumption

Tata Steel Thailand

Special Wire rod sales to be increased to export markets for higher realizations Enhance Cash conservation and liquidity management by introducing Credit Insurance backed Securitization scheme All old stocks of scrap (prior to September 2008) have been liquidated

23

Operating Performance - TS India

FY09
6 5 4 3 2 1 0

Mn Tonnes

Q4 FY09
5.2 4.8 1.6 1.3 1.8 1.3

5.4

4.9

Production
FY09

Deliveries
FY08

Production
Q4 FY09

Deliveries
Q4 FY08

Best ever Hot metal (6.3 million tonnes), Crude steel (5.7 million tonnes) and Saleable steel (5.4 million tonnes) production Newly commissioned Blast Furnace (H furnace) in its very first year of operation surpassed its yearly target and is now running at 2.9 mtpa which is 117% of the rated capacity 24

* India- Saleable Steel Production

Operating Performance - S.E Asia

Nat Steel Asia
2.4 1.5 1.6 2.5
0.4

Mn Tonnes

0.6
0.4

0.7

Production
FY09

Deliveries
FY08
0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00

Production
Q4 FY09

Deliveries
Q4 FY08

Tata Steel Thailand

0.36 0.38 0.2 0.4 1.4 1.1 1.1 1.4

Production
FY09

Deliveries
FY08

Production
Q4 FY09

Deliveries
Q4 FY08

* Nat Steel Asia & Tata Steel Thailand - Finished Steel Production

25

Operating Profit Bridge TS India

US $ M Mn

678

( 600) 136 (30) (13) 1,665

34 1,459

FY'08

NR

Cost

Vol / Mix

Impr Savings

Other Inc / Exps

Exch Loss

FY'09

Conversion Rate : USDINR - 50.87

26

Savings Through Improvement Initiatives - India

US$ Mn Cost reduction of US$ 47/t of Saleable Steel achieved in H2FY09 against g a target g of US$ 39/t 167.09
31 09 31.09 77.6 40.4

Break up p of Savings g achieved in FY09 through g improvement initiatives:

31.1

101.63 87.08
8.65
Aspire Projects TOC

17 9 17.9

Marketing Initiatives

Synergy

136.00 87.08 92.98

Examples of Initiatives resulting in Savings in FY09 Increase in Caster utilization, utilization Converter Life and lower ferro alloys consumption US$ 25.5 Mn

FY 2007

FY 2008

FY 2009 Synergy

Increased domestic coke production substituting imported coke requirement US$ 24.2 Mn

Process Improvement

Conversion Rate : USDINR - 50.87

* Synergy Benefit incremental over previous year

27

Performance Improvement Plan FY10 - India

Key Initiatives

New Product Development

Increase output from larger efficient Blast Furnaces

HS 600 HR for cold formed applications (Wheels)

Reduction in coke rate and increase in coal injection rate.

Coated skin panels for Nissan and Toyota IFHS 340 with high r-bar for Hyundai and Maruti through Batch Annealing process Achieved world benchmark in billet quality with zero complaints on rhomboidity & scrappiness

Special drive to increase sales to Govt projects and Railways

Launch of GP Brand (Galvano) Wider coverage of Supply Chain Solution as per the Theory of Constraint

Develop plasma coated Rebar Develop air cooled, corrosion resistant Rebars

Export of billets to South East Asian countries

28

Recent Developments
Mozambique Project
90% increase in inferred reserves to 4.0 Bn tonnes in Benga Coal Project Govt of Mozambique has approved the mining contract Initial run of mine (ROM) development at 5.3 mtpa, increasing subsequently to 10 mtpa and ultimately to 20 mtpa Construction of rail line between Tete and Beira is underway and expected to be completed by 2010 Company has increased its stake in the parent, parent Riversdale Mining Ltd to ~15%

Tata Ryerson
Tata Steel set to acquire entire equity stake (50%) of Tata Ryerson Ltd held by Ryerson Plans for gradual development of the company into a full fledged material management service company In the last five years, Revenues, EBTIDA and PBT grew at CAGR of 40%, 21% and 25% respectively.

29

Tata Steel Group Financial Performance

30

Consolidated Financial Performance Apr- Mar FY09

US $ Mn Tata T t Steel (mt ) Deliveries ( Turnover EBITDA Reported Underlying EBITDA margin (%) PBT Reported Underlying U d l i PBT margin (%) *** PAT** - Reported - Underlying One off items Loss / (Gains) Diluted EPS (US$) $
(*) Includes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group (**) Profit after taxes, MI and Share of Associates ; (***) PBT Margin is calculated on underlying PBT ; Conversion Rate : USDINR - 50.87

TS Europe 19.7 21,539 1,751 2 228 2,228 8.1 (36) 1 246 1,246 (5.8) 27 1,309 1,282

NSA

TSTH

Tata T t Steel St l Group(*) 28.5 28,962 3,636 4 212 4,212 12.6 1326 2 707 2,707 9.4 973 2,354 1,381 1.16

5.23 4,780 1,856 1 856 1,856 38.8 1,438 1 438 1,438 30 1,023 1023

2.4 2,648 55 58 2.1 (33) (30) (1.1) (46) (43) 3

1.1 780 29 89 3.7 3 63 8.1 2 62 60

31

Balance Sheet
US$ Mn As at 31st Mar'09
Assets Cash Receivables I Inventory t Other Assets Net Fixed Assets Total Assets Liabilities Creditors Interest Bearing Liabilities Provisions& Other Liabilities Total Liabilities Net Assets
Conversion Rate : USDINR - 50.87

As at 31st Mar'08

Reflects lower sales in TS Europe in the fourth quarter NRV Provisions in TS Europe

1,209 2,562 4 260 4,260 6,969 8,906 23,905

832 3,676 4 534 4,534 7,284 8,250 24,575

Reflects reduction in pension fund assets of TS Europe . Revaluation of foreign currency hedges show an increase in TSL India Capital expansion in Indian and foreign subsidiaries Reflects less purchase of raw materials in TS S Europe due to production cuts Net Increase in Borrowings & Revaluation Impact in ECB loans in TSL India

4,540 , 11,775 1,670 17 985 17,985 5,920

5,182 , 10,542 1,966 17 690 17,690 6,885

32

Reconciliation between Underlying & Reported Earnings

Apr Mar FY09 FY 09
EBITDA FY FY 2009 2008 Numbers as Reported Add: Exchange (Gains)/Loss , Actuarial Gains & Others Inventory Write Down Restructuring, Disposal , Accelerated Depreciation / Impairment Costs 3,636 3,595 PBT FY 2009 1,326 FY 2008 3,218 FY 2009 973 US$ Mn PAT FY 2008 2,428

576

576

(1,245) -

576

(1,245) -

805

805

Underlying Earnings

4,212

3,595

2,707

1,973

2,354

1,183

Conversion Rate USDINR - 50.87 uniformly applied for all comparable periods

33

Consolidated Inventory Write Downs

US$ M Mn 477

Total Inventory Write Downs in FY09 US$ 576 Mn

60

34
Tata Metaliks

3
NatSteel Holdings

2
Others

TS Europe

TS Thailand

Steel prices have corrected across the globe, whereas certain markets have additionally been impacted because of the sharp fall in demand. This has resulted in significant inventory write downs across geographies geographies. 34

Conversion Rate : USDINR - 50.87

Balance Sheet Net Worth Analysis

US$ Mn

Conversion Rate : USDINR - 50.87

35

Consolidated Financial Ratios

Net Debt / EBITDA
2.72 2.64 4.32 3.46

Interest Cover

Mar '09

Mar '08

Mar '09

Mar '08

ROIC (%) Pre Tax (Annualised)

20 19

Diluted EPS ( $ )
3.20

1.16

Mar '09 09

Mar '08 08

Mar a '09 09

Mar a '08 08

Conversion Rate : USDINR - 50.87 uniformly applied for all comparable periods

36

Consolidated Free Cash Flow

US$ Mn

Conversion Rate : USDINR - 50.87

37

Working Capital Management

Tata Steel India
1,086 1,000 800 573 600 400 200 0 Mar'08 Jun'08 Sep'08 Dec'08 Mar'09 0.38 120 0.41 183 649 0.47 213 0.50 0.60 0.40 124 140 0.20 0.00 835 0.82 766 0.80 1.00 6,000 4,705 5,000 4,000 3,000 2,000 1,000 0 Mar'08 Jun'08 Sep'08 Dec'08 Mar'09 3,730 3.44 4,025 4,881

Tata Steel Europe

5,345 4,545 4,463 , 3.17 2,991 2.98

US$ Mn
8.00 7.00 6.00 3,457 5.00 4.00 2,526 2.58 3.00 2.00 1 00 1.00 0.00

2.99

Nat Steel Asia

500 400 300 200 100 0 Mar'08 Jun'08 Sep'08 Dec'08 Mar'09 272 233 0.23 0.19 189 143 245 0.28 314 0.29 417 330 262 0.26 203 0.60 0.50 0.40 0.30 0.20 0.10 0.00 300 250 200 150 100 50 0 Mar'08 134 0.06

Tata Steel Thailand

285 0.16 0.14 201 0.08 87 60 67 Jun'08 Sep'08 27 0.11 139 0.07 0.04 16 160 0.12 0 10 0.10 0.08 0.06 0.04 0 02 0.02 0.00 Dec'08 Mar'09

Avg USDINR : 45.45

Inventory

Receivables

Finished Inventory in Mn Tonnes

38

Pensions TS Europe
Combined Surplus of all TS Europe Pension Funds US$ Mn
68% 65% 6% 5% 25% 5% 42% 26%

BSPS Asset Mix

2% 5% 1% 51%

US$ $ Mn

1,908

March'09

March'08

March'07

Equities

Property

Bonds

Cash

879

531 337

Tri-ennial valuation completed Shift made from investment in volatile market assets to fixed income bonds as part of de-risking de risking strategy Closure of defined benefit schemes for new entrants and fixing contribution @12% for old members for 3 years, accepted by trustees CESPS merged into BSPS w.e.f. 1-4-2009

Mar'09 Mar 09

Dec'08 Dec 08

Mar'08 Mar 08

Mar'07 Mar 07

Conversion Rate : GBPUSD - 1.4300

39

Capital Initiatives
Consortium bankers of TS Europes non recourse debt voted

Covenant Reset

unanimously to relax the earnings related covenants

Rupee Bond US$ 423 Mn; Tenure 10 years

Raising of Finances

Rupee bank loans US$ 560 Mn; Tenure 6-10 years Bank syndication for financing of Brownfield expansion near completion

Prepayment of SFA Facility Debt in Sep08 US$ 421 Mn

Prepayment of Debt

Term debt of Natsteel repaid

40

Covenant Reset - Senior Facilities Agreement - TSUK

Lenders under the SFA to TSUK
Banks Mandated Lead Arrangers Indian Banks Other Banks Non Banks / Funds TOTAL Loan Outstanding
( Bn)

Voting% 30.5% 28.2% 32.6% 8.7%

1.01 0.93 1.08 0.28 3.31

Total No. of Lenders - 70 U Unanimous i consent tf for proposed d amendments d t obtained bt i d

41

Covenant Reset - Senior Facilities Agreement - TSUK

Net Leverage (Indexed to 200) Interest Cover (Indexed to 400)

42

Gross Debt Movement & Net Debt Position

* Cash and cash equivalents includes current investments

43

Gross Term Debt Repayment Obligation

US$ M Mn 1 153 1,153 Company will prepay debt of ~ GBP 200 Mn in TS Europe

589
284

No scheduled repayment of non recourse debt in FY10

564 284
FY'10 FY'11

prepayment p y due to p Debt in TSL India of US$ 216 prepaid p in the month of Mn p May09. FY10 number is net of prepayment

Tata Steel Europe

Tata Steel India

Conversion Rate : USDINR 50.87

44

Liquidity Position
US $ Mn

3,509 2,712 1 917 1,917 1,704

746 548 2,178 1,779 1,171 1,156 933

1,331

Sep'08

Dec'08 Cash & Cash Equivalents

Mar'09 Undrawn lines

20th Jun'09

(*) Excludes other JVs, Subsidiaries & share of profit of Associates of the Tata Steel Group
Conversion Rate : USDINR - 50.87

45

Thank You

46