February 10, 2021

The Secretary, Listing Department The Manager, Listing Department

BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1,
Dalai Street, G Block, Bandra-Kurla Complex, Bandra
Mumbai - 400 001. (E),
Maharashtra, India. Mumbai - 400 051.
Scrip Code: 500470/890144 Maharashtra, India.
Symbol: TATASTEEL/TATASTLPP

Dear Madam, Sir,

Sub: Submission of Revised Presentation for Analysts/Investors

This refers to our letter dated February 9, 2021.

Please find enclosed herewith the revised presentation on the audited Standalone and
unaudited Consolidated Financial Results of the Company for the quarter and nine months
ended December 31, 2020.

This presentation is being submitted in compliance with Regulation 30(6) of the SEBI (Listing
Obligations and Disclosure Requirements), Regulations, 2015.

This is for your information and records.

Yours faithfully,
Tata Steel Limited

Parvatheesam Kanchinadham
Company Secretary & Chief Legal Officer
(Corporate & Compliance)

Encl: As above

Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India
Tel 91 22 6665 8282 Fax 91 22 6665 7724 Website www.tatasteel.com
Corporate Identity Number L27100MH1907PLC000260
 Results Presentation
Financial quarter and nine months ended December 31, 2020
February 10, 2021

1
Safe harbor Statements in this presentation describing the Company’s performance may
statement
be “forward looking statements” within the meaning of applicable securities
laws and regulations. Actual results may differ materially from those directly
or indirectly expressed, inferred or implied. Important factors that could
make a difference to the Company’s operations include, among others,
economic conditions affecting demand/supply and price conditions in the
domestic and overseas markets in which the Company operates, changes
in or due to the environment, Government regulations, laws, statutes,
judicial pronouncements and/or other incidental factors

2
Key performance highlights

Revenue EBITDA Free cashflow Deleveraging

▪ Consolidated revenue ▪ Highest ever consolidated Generated free cash flow of ▪ Deleveraged sharply; Net
improved 7%QoQ and EBITDA; up by 53%QoQ and Rs.20,588 crores in 9MFY21 debt reduced by Rs.18,609
11%YoY to Rs.39,594 crores 161%YoY to Rs.9,540 crores and Rs.12,078 crores in crores in 9MFY21 and
▪ India1 revenue improved ▪ Highest ever India1 EBITDA; up 3QFY21; driven by strong Rs.10,325 crores in 3QFY21
9%QoQ and 18%YoY to by 46%QoQ and 114%YoY to operating performance and ▪ Additional deleveraging
Rs.25,211 crores Rs.8,811 crores better working capital planned in 4QFY21 including
management ~Rs.6,400 crores repaid till date

Disciplined capital Marketplace Sustainable

Reorganization
allocation initiatives operations
▪ Spent Rs.1,394 crores in ▪ Developed 25 and ▪ TSBSL merger into Tata ▪ Committed towards
3QFY21 on consolidated basis commercialised 8 new products Steel is underway decarbonization, water
▪ Restarting work on Pellet with applications across ▪ Merger of TML and ISWP neutrality and responsible
plant and CRM complex at construction, automotive and into TSLP is ongoing supply chain
Tata Steel Kalinganagar tubes/pipes ▪ Focus on circular economy and
▪ Separation of TSE into
▪ Digital platform Aashiyana2 development of
TSN and TSUK is underway
scaling up rapidly; Gross revenue environmentally sustainable
generated >Rs.200 crores, up by products
40%QoQ and 134%YoY

1. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations; 2. Aashiyana is Tata Steel’s
online/digital steel shopping platform targeted towards generating sales from retail ‘Individual home builder’ segment across India; TML: Tata Metaliks; ISWP: Indian Steel and Wire Products;
TSLP: Tata Steel Long Products; TSE: Tata Steel Europe; TSN: Tata Steel Netherlands; TSUK: Tata Steel UK 3
Committed towards excellence in Safety, Health & Sustainability

Safety Health Sustainability

▪ Identified 1,200 potential hazards ▪ Completed COVID-19 ▪ Tata Steel Group, including Europe, has
under safety campaign on ‘Moving Seroprevalence study covering been rated “A-“ in the ‘Leadership Band’
Machinery – Risk perception & Risk 20,000 employees across multiple on Climate Disclosure
elimination’; 86% has been closed locations to assess exposure
▪ Won CII 3R Awards 2020 for
▪ Launched safety campaign on ‘Drive ▪ Rolled out assessment of Industrial demonstrating 3R (Reduce, Reuse,
Towards Zero Toppling Incident’ hygiene and implementation of Recycle) principles in by-products
across raw material locations hazard control measures to management
minimise exposure

LTIFR reduction by ~23%

0.95
0.78

0.73
0.69
0.68
0.60

0.58
0.56

0.47
0.46
0.44
0.39
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
9M21

LTIFR: Lost Time Injury Frequency Rate per million man hours worked, for Tata Steel Group
4
Our sustainability strategy: Committed to decarbonisation, water neutrality and circular economy practices
Key highlights Key targets
Decarbonization ▪ Significant reduction in emission intensity till FY20: i) >27% at TSJ ▪ Tata Steel India:
since 2005, ii) >20% at TSK since FY17, iii) 5% TSE since 2008, o <2 tCO2/tcs GHG emission intensity by 2025
and iv) >13% TSN since 1990 o Certification of all key manufacturing sites under
▪ TSJ at 2.27 tCO2/tcs is benchmark in India; TSN at 1.86 tCO2/tcs is ResponsibleSteelTM in next 2 years
the 3rd most carbon efficient steelworks among the participants of ▪ Tata Steel Europe: 30% CO2 emissions reduction by
worldsteel’s Climate Action Programme in 2020 2030 vs. 2018 and carbon neutrality of steel making
▪ Deployed Responsible supply chain policy; Member of by 2050
ResponsibleSteelTM
▪ Tata Steel Group rated “A-“ in the ‘Leadership Band’ on Climate
Disclosure in CDP’s 2020 assessment

Water Neutrality ▪ Tata Steel India:

o <3m3/tcs specific water consumption by 2025
▪ Reduction in specific water consumption till FY20: i) >58% at TSJ o Develop long-term plan for water neutrality
since 2005 and ii) >45% at TSK since FY17
including initiatives at watershed level

Circular ▪ Implemented “3-R” approach to maximize utilization ▪ Tata Steel India:

Economy ▪ 100% LD Slag utilization by Tata Steel India since FY19; o Sustain LD slag utilization at 100%
developed “Tata Aggreto” and Tata Nirman” products for o Ensure no net loss of biodiversity
construction purpose o Cover 100% products under LCA in next 2 years
▪ TSE: World’s only steel company operating own EPD* program; ▪ Tata Steel Europe:
100% new products of FY20 scrutinised under the program o All TSN and TSUK products certified to BES6001
o Demonstrate Zinc circularity using HIsarna in 2
▪ Scrap recycling business in India; Set-up 0.5 MTPA capacity on years
asset light model
TSJ: Tata Steel Jamshedpur; TSK: Tata Steel Kalinganagar; TSE: Tata Steel Europe; TSN: Tata Steel Netherlands; TSUK: Tata Steel UK; LCA: Life cycle assessment; 3-R” approach: Reducing waste, reusing and recycling
resources; Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations; Tata Steel Group: Tata Steel Limited including
its key subsidiaries and joint ventures; EPD: Environmental Product Declaration; CDP: CDP is an international non-profit organization that runs the global disclosure system for investors, companies, cities, states and regions to 5
manage their environmental impacts
Our sustainability journey - Way forward

▪ Improving transparency and disclosures by engaging in

sector initiatives for best practices, certification, traceability, Injection
and policy advocacy; First Indian Company to adopt “Task Use of
technology in
Force on Climate-related Financial Disclosures” Hydrogen in
Blast Furnace and
place of
Top gas recycling
fossil fuel
▪ Deploying responsible supply chain policy across value chain
including 3rd party assessment

Alternate
▪ Contributing towards the future circular economy by – i) using Ironmaking
low-quality raw materials, ii) securing value from by-products, Pursuing
routes (Gas based
iii) increasing scrap recycling, and iv) innovating in products Carbon capture low carbon DRI/ Hisarna)
that are lighter, more durable, flexible, re-usable and 100% utilization &
storage
technologies
recyclable at end-of-life

▪ Implementing the best available technologies to improve

energy efficiency and reduce emissions intensity; pursuing Green
low carbon technologies through a variety of measures Increase electricity/
EAF/scrap Renewable
▪ Collaborating with customers to develop environmentally usage energy
sustainable products using ‘Life cycle assessment’ approach;
Environmental Product Declaration / GreenPro Certification

Policy support necessary to drive enabling technology, infrastructure and make “Net Zero” steel competitive

6
Global macro environment
World trade volume and Manufacturing PMIs Steel demand and production (mn tons)
▪ Global economy continues to recover from COVID-19 Global Manufcaturing PMI World ex-China Steel Production
pandemic; expected to grow 5.5%YoY in 2021 driven by 60
EU Manufacturing PMI
10% 100 China Steel Production
China Manufacturing PMI China Apperant Steel demand
policy support and improving sentiment amidst vaccine World Trade Volume (%YoY, RHS)
progress 50 0% 80

40 -10% 60
▪ Chinese economic growth was stronger than estimate for
Dec’20 quarter; expected to grow 8.1%YoY in 2021 30 -20% 40
Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20

▪ China’s crude steel production decreased 3.4%QoQ;

World-ex China production improved to pre-COVID levels China Steel inventory (mn tons) Global HRC prices ($/t)
45 FY18 FY19 Korea export FOB
FY20 FY21 800 China export FOB
▪ China’s apparent steel demand softened in Dec’20 quarter 35
China domestic
Germany domestic
amidst harsh winters; Inventories fell to pre-COVID levels 650
25
before rising again in Jan’21 ahead of New Year holidays
15 500

▪ Iron Ore prices remain buoyant on supply side constraints 5 350

and sustained Chinese demand; Broadly stable Coking Apr Jul Oct Jan Mar Jan-19 Jul-19 Jan-20 Jul-20 Jan-21
Coal prices jumped recently due to severe Australian
weather concerns Spot HRC spreads ($/t) Key raw material prices ($/t)
450 Premium HCC, Australia FoB
China export spread
Iron Ore-62% Fe, China CFR (RHS)
▪ Regional gross spot spreads improved sharply as steel 375
EU Spreads
225 200

prices rose consistently with demand recovery including 300

175 150
restocking, tight supply and cost push; Chinese steel 225
prices and spread have softened in Jan’21 ahead of New 150
125 100
Year holidays
75 75 50
Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21

Sources: World Steel Association, IMF, Bloomberg, Steelmint, Morgan Stanley and Tata Steel; China HRC spot spreads = China HRC exports FOB – 1.65x Iron Ore (62% Fe China CFR) - 1x Coal
(Premium HCC Australia FoB); EU HRC spot spreads = HRC (Germany) - 1.6x iron ore (fines 65%, China spot, R’dam) - 0.7x premium hard coking coal (Australia spot, R’dam) - 0.1x scrap (HMS,
R’dam)
7
Business environment in India and Europe
India: India key economic growth indicators* India steel volumes (mn tons)
Capital Goods Infra/construction goods Exports (RHS) Crude Steel Production
▪ Economic activities witnessed a sustained recovery in Automotive
Railways
Consumer Durables
10
Finished steel demand
1.8
India; most of the steel consuming sectors rebounded on 200 1.5
economic recovery, government spending, pent-up 8
demand, festive push and easing liquidity 150 1.2
6
0.9
▪ Apparent steel consumption improved by 17.8%QoQ and 100
4
0.6
10.7%YoY in 3QFY21
50 2 0.3

▪ Indian steel prices increased following international steel 0 0 0.0

Nov-18 May-19 Nov-19 May-20 Nov-20 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20
prices amidst robust demand, restocking and supply
tightness
EU key steel consuming sectors
Europe: (monthly output, YoY % change) EU market supply

▪ New lockdowns amid resurgence of COVID-19 cases 20% Imports (mn tons)
Imports share (%, RHS)
EU deliveries (mn tons)

weighed on economy recovery in 3QFY21 0% 16 30%

▪ EU steel imports have declined due to low margins. -20%

12 20%
However, the market share of imports remains high -40%

-60%
▪ EU sport spread has improved with continuing increase in 8 10%
-80% Construction
Steel prices on the back of demand recovery, extended Mechanical engineering
EU mills lead time and cost push driving EU spot spreads; -100%
Cars (units)
4 0%
expected to translate through P&Ls from 4QFY21 Dec-18 Jun-19 Dec-19 Jun-20 Nov-20 Dec-18 Jun-19 Dec-19 Jun-20 Nov-20

Source: Bloomberg, SIAM, Joint Plant Committee, MOSPI, CMIE, Eurofer, Eurostat and Tata Steel
*Figures of Industrial Production for Capital Goods, Infrastructure/Construction, consumer durables and railways are rebased to Nov'18=100 using FY12 index based sector weights; number of units 8
produced as per SIAM; growth of key steel consuming sector is calculated by removing sub-segments which do not consume steel
 Consolidated1 (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20
financial
Production (mn tons)2 7.20 6.73 6.99
performance
Deliveries (mn tons) 6.88 7.40 7.31
Total revenue from operations 39,594 37,154 35,520
Raw material cost3 13,713 12,104 13,754
Change in inventories (801) 3,220 3,356
EBITDA 9,540 6,217 3,659
Adjusted EBITDA4 8,283 5,425 2,643
EBITDA per ton (Rs.) 13,876 8,396 5,003
Pre exceptional PBT from continuing operations 5,714 2,205 (216)
Exceptional items (154) 43 (329)
Tax expenses 1,572 613 621
PAT from Continuing Operations 3,989 1,635 (1,166)

Highest ever
consolidated EBITDA
Note:
1. Consolidated figures don’t include NatSteel Holding and Tata Steel Thailand which are classified as ‘Assets Held for Sale’
2. Production Numbers: Tata Steel Standalone, Tata Steel BSL & Tata Steel Long Products - Crude Steel Production, Europe - Liquid Steel Production.
3. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products.
4. Adjusted for fair value changes on account of FX rate movement on investments in T Steel Holdings and revaluation gain/loss on external/ internal company debts/ receivables at TS Global Holdings
9
Consolidated
Adjusted ₹ Crores
EBITDA1 ▪ Selling results reflect partial impact
of sequential increase in steel
movement 3,248 175 8,283 prices across the key entities
149
416 ▪ Cost changes reflect lower price of
imported coal; partially offset by
higher production at Tata Steel
5,425 Europe and higher iron ore prices
across the entities except at
Standalone

▪ Volume/mix impact primarily due to

lower steel deliveries which were
constrained by lower opening
inventory; largely offset by lower
exports from Indian entities and
improved product mix

▪ Others reflect higher provision for

emission rights and reversal of
Adjusted Selling Cost Volume/Mix Others Adjusted
wage support at Tata Steel Europe;
EBITDA Result Changes EBITDA
2QFY21 3QFY21 partially offset by improved
profitability at most of operating
entities

1. EBITDA adjusted for revaluation gain/loss on external/ internal company debts/ receivables at Tata Steel Global Holdings
10
Consolidated Cash Flow movement during 3QFY21
₹ Crores

7,218

302

1,272

1,667 45

1,394 12,078

9,540

330

7,723 4,685

EBITDA Working Direct taxes Gorss interest Non - Cash Dividend Capex Free Cash Net Other Net Cash
3QFY21 capital payment payment & Others payment (incl. Flow repayment investing Flow
movement Hybrid activities
perpetual & others
securities )

11
Consolidated2 Rs. Crores
Debt movement 1,16,328 241
1,248
286 1,14,319
11,549 1
2,536
1,04,779 17,824 1 836 1,08,680
7,723
67,129
96,495

86,170
22,509 1

movement

Gross Debt

movement
Gross Debt

Gross Debt
new leases

and Others

new leases

and Others

Cash, Bank &

Net Debt
Addition of

Addition of
FX Impact

FX Impact

Investments

Dec'20
Sep'20

Dec'20
Mar'20

Loan

Loan

Current
Further reduction in
gross debt of more
than Rs.12,000 crores ▪ Gross debt reduced by Rs.5,640 crores and Rs.7,649 crores in 3QFY21 and 9MFY21, respectively
planned in 4QFY21 ▪ Net debt reduced by Rs.10,325 crores and Rs.18,609 crores in 3QFY21 and 9MFY21, respectively

1. Cash, bank & current investments

2. Consolidated numbers doesn’t include NatSteel Singapore and Tata Steel Thailand as these have been classified as “Assets Held For Sale” 12
Tata Steel (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20
Standalone:
Total revenue from operations 17,966 16,362 15,262
Financial
performance Raw material cost1 4,166 3,957 4,210

Change in inventories 307 1,216 1,326

EBITDA 6,737 4,718 3,791

Adjusted EBITDA2 6,737 4,718 3,470

EBITDA per ton (Rs.) 20,175 13,127 11,059

Pre exceptional PBT from continuing operations 5,071 2,949 2,066

Exceptional items3 (226) (9) 349

Tax expenses 1,231 735 611

Reported PAT 3,615 2,205 1,804

Superior business
model drives strong
performance and
highest ever EBITDA

1. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products; 2. 3QFY20 EBITDA is adjusted for fair value changes on account of exchange rate
movement on Preference share investments in T Steel Holdings, however, there is no adjustment from 4QFY20 onwards as the investment was converted in to equity; 3. 3QFY21 exceptional items 13
primarily include Rs.238 crores charge under special early separation scheme at Jharia location
Tata Steel
Standalone: ₹ Crores
EBITDA movement ▪ Selling results reflects partial impact
of sequential increase in steel prices
263
1,835
59 20
6,737
▪ Cost changes reflect higher use of
imported coal and higher bonus
provision, partially offset by lower
imported coal prices

4,718
▪ Volume/mix impact is primarily due to
lower deliveries which were
constrained by lower opening
inventory; largely offset by improved
product mix and lower exports

▪ Others are primarily due to higher

income from Iron ore sale to group
companies and higher income from
profit centers in India; partially offset
by lower dividend and other income.
Also, 2QFY21 had benefit from
EBITDA Selling Cost Volume/Mix Others EBITDA reversal of certain provisions
2QFY21 Result Changes 3QFY21

14
Tata Steel India1: Production and delivery volumes

▪ India’s crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3%YoY growth

▪ Sales momentum was strong in 3QFY21, however, deliveries were lower by 8%QoQ and 4%YoY to 4.65 mn tons primarily due to lower opening inventory
post strong sales in 2QFY21

▪ Domestic deliveries sharply ramped-up to 4.16 mn tons which translates to an increase of 8%QoQ and 4%YoY; Exports shrank below 11% of overall
deliveries

▪ Automotive & Special Products’ segment deliveries grew 48%QoQ on the back of higher production by Auto OEMs and our increased presence with new
product approvals; ‘Branded Products & Retail’ segment deliveries grew by 5%QoQ

Crude Steel Production (mn tons) Total deliveries (mn tons) Segment-wise deliveries2 (mn tons)
Domestic Exports Downstream BPR Automotive & Special IPP Exports
5.50 5.10

4.60 4.59 5.05 4.84 5.05

4.84
5.25

4.47 5.00

4.75
4.65 4.65
5.00

4.50

4.25
0.49 1.19 0.85 0.49 1.19 0.85
4.00

4.90

3.75
4.16 4.00
3.50

3.86
3.25

4.80 1.69 1.71

3.00

2.75
1.71
2.50

4.70
2.25

2.00 0.69 0.47 0.42

1.75

4.60
1.50

1.25

1.00
1.41 1.57
0.75

0.50
4.50
1.35
0.25

0.37 0.33 0.30

0.00 4.40

3QFY21 2QFY21 3QFY20 3QFY21 2QFY21 3QFY20 3QFY21 2QFY21 3QFY20

1. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations;
2. Downstream indicates transfers to downstream units 15
Tata Steel India1 – segmental highlights
▪ Automotive & special products:
o Received approval for Hi Tensile DP590 grade (CR & GA)
from 2 new OEMs

▪ Branded products and retail:

o B2C brands Tata Shaktee and Tata Tiscon achieved best-
ever quarterly sales, serving more than 1.5 lacs and 5.5
lacs consumers, respectively, in 3QFY21
o A new coated brand “Galvanova” was launched to meet
the evolving needs of ECA customers with applications in
Appliances, False Ceiling and Solar segments

▪ Industrial products and projects:

o Deliveries in high-end segments like Oil & Gas, Pre-
Engineered Building, Lifting & Excavation & Solar
registered a growth of 33%QoQ and 100%YoY
o Secured order of Tata TISCON CRS rebars for the
prestigious New Parliament Building Project with 100%
share of business till date

▪ Downstream divisions2:
o Tubes division achieved best ever quarterly deliveries with
growth of 14%QoQ and 13%YoY enabled by strong
customers engagement and higher rural penetration
o Wires division achieved best ever quarterly deliveries with
growth of 7%QoQ and 6%YoY

1. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations; 2. Downstream divisions
include Tubes, Wires, Bearings, etc. 16
Tata Steel India1 – New products developed for Automotive customers

DP High Tensile (Cold Rolled High Strength IFHS 440 (Cold Rolled High Strength Steel): DP 600 in GA & GI (Coated Steel): High strength
Steel): Auto-internals with enhanced mechanical High formable IF based high strength steel with coated steel with 600 Mpa min tensile strength for
properties, weldability and adhesive compatibility 440 Mpa min tensile strength ‘Pillars’ and ‘Reinforcement’ applications

Secondary Coating (Coated Steel): Thin E410HF / E450HF (Hot Rolled High Strength FB590 / SPFH540 / YST38 (Hot Rolled High
secondary coating on GA – enables improved Steel): Hot Forming grades, with improved internal Strength Steel): Advanced High Strength Steel
performance during forming due to increased soundness and mechanical property for ‘Axle with improved formability, hole expansion and
surface lubrication housing’ application fatigue (endurance) properties for ‘Wheel Disc’

1. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations
17
Tata Steel India1 – Progress on new initiatives

Supplier of choice for

Aashiyana2 Steel Recycling Business
automotive steel
▪ Highest ever quarterly gross ▪ Commissioned 1st state-of-the-art
revenue generated through Steel Recycling plant in India
‘Aashiyana’ of Rs.223 crores in
3QFY21, up 40%QoQ and ▪ 1st standardized product: baled
134%YoY Ferrous Scrap launched

▪ 27 lacs+ visitors on the website ▪ FerroHaatTM launched to build a

since launch; 20,000+ unique digital supply chain for scrap; 1st
consumers served in 5,000+ pin- of its kind mobile app in the world
codes since inception

Service & Solutions New Material Business

▪ >22,000 Tata Pravesh units sold ▪ Installed 100 TPA Graphene
during 3QFY21, registering a growth powder production, the world’s
of 26%QoQ and 23%YoY largest single site facility, at
Jamshedpur
▪ Tata Pravesh forays successfully
into Odisha government schools ▪ Manufactured and supplied FRP
furnished AC 1st Coach to
▪ Nest-In has obtained largest single Modern Coach Factory
order to construct a 55,000 sq.ft.
multi-storey building ▪ Supplied first export (indirect)
order of FRP poles
1. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (TSBSL) and Tata Steel Long Products (TSLP) on proforma basis without inter-company eliminations; 2. Aashiyana is an online
platform by Tata Steel targeted towards ‘Individual home builder’ segment; FRP: Fibre Reinforced Polymer
18
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20
Consolidated Crude Steel production (mn tons) 1.11 1.14 1.15
performance Deliveries (mn tons) 1.15 1.27 1.26
and key updates Total revenue from operations 5,881 5,519 5,038
Raw material cost1 2,846 2,558 2,630
Change in inventories 59 488 744
EBITDA 1,634 1,113 284
EBITDA per ton (Rs.) 14,223 8,735 2,261
EBITDA Margin (%) 27.8% 20.2% 5.6%
Reported PAT 913 342 (497)

Key ▪ Revenue from operations increased 17%YoY and 7%QoQ amidst higher steel prices and improved mix
updates ▪ Achieved the highest ever EBITDA of Rs 1,634 crores and PAT of Rs 913 crores
▪ Free Cashflow generation driven by stronger operating performance; net debt reduced by Rs.1,683
crores including prepayment of Rs.1,000 crores in 3QFY21
▪ Focus on product mix enrichment with improvement in market share and operational parameters:
o Branded Products sales grew 245%YoY with ramp up of newly launched ECA coated brands
‘GalvaRoS’, ‘Colornova’ and ‘Galvanova’
o Auto sales grew 45%YoY with increasing share of business with existing customers, adding new
Focus on cashflows customers and new product development; 41%YoY growth in automotive special products sales
and deleveraging such as H&T and HTSS
o Fuel rate improved to 525 kg/thm in 3QFY21 vs. 529 kg/thm in 2QFY21
1. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products
H&T: Hardened & Tempered; HTSS: Hardened & Tempered Steel Strip 19
Tata Steel Long Products: Steady improvement in operations and the marketplace
Crude Steel Production (K tons) Steel deliveries (K tons)
▪ Despite maintenance shutdowns, achieved the highest
ever quarterly crude steel production with a growth of Automotive IPP Exports
3%QoQ and 10%YoY on the back of debottlenecking 166 184 163
and arcing 173 2%
168
31%
157 45%
▪ Steel deliveries were lower 10%QoQ as constrained by
33%
53%

lower opening inventory but increased 3%YoY; achieved

best-ever quarterly Rolled Product steel sales with 55% 45%
17%QoQ growth, Alloy Wire Rod sales was also the 36%
best-ever with a 26%QoQ growth
3QFY21 2QFY21 3QFY20 3QFY21 2QFY21 3QFY20

▪ Enhancing and diversifying presence in Automotive with

the strong recovery in marketplace
Continued focus on mix enrichment (%) New products developed (Nos)
o Approval from key PV OEM
o Approval from global OEM to ramp-up volume for Alloy High Carbon
component exports 45

o Gained market share at both Automotive domestic

level (17% in 3QFY21 vs. 14% in 2QFY21) and for 47% 35%
56%
Auto components exports market (20% in 3QFY21
vs. 18% in 2QFY21) 20
65%
44% 53%
▪ Maintained presence with the strategic customers in
Tractor segment 3QFY21 2QFY21 3QFY20 9MFY21 9MFY20

20
 Tata Steel Long (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20
Products: Total revenue from operations 1,364 1,186 999
Consolidated Raw material cost 549 577 588
Financial Change in inventories 1 85 63
performance EBITDA 440 194 36
EBITDA per ton (Rs.)1 26,471 10,512 2,253
EBITDA Margin (%) 32.2% 16.4% 3.7%
Reported PAT 304 59 (112)

Net Debt & Equity (Rs. crores)

Equity ▪ Achieved highest ever EBITDA of Rs 440 crores and
3.6x Net Debt PAT of Rs.304 crores
5,600 Net Debt to Equity (RHS) 3.6x
1.7x

4,200 1.4x ▪ Free Cashflow generation driven by stronger operating

performance and working capital release
2,800 1.1x
▪ Reduced Net debt by Rs.495 crores in 3QFY21 including
1,400 0.8x prepayment of ~Rs.199 crores
Strong operational 0.7x
turnaround and 0 0.5x
▪
1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21
Gearing improved sharply to 0.7x with ~Rs.1,250 crores
buoyant market drives net debt reduction over last 5 quarters
deleveraging
1. EBITDA/Steel deliveries
21
Tata Steel Long Products: Set to scale up with merger
Revenue1 (Rs. crores) EBITDA1 (Rs. crores)
▪ TSLP to transform into a high value added, diversified long product steel TSLP TML ISWP TSLP TML ISWP
company
904
5,820
▪ Combination of mini, integrated steel plants to – 10
4,656 279 572 246
509
o Drive scale and future growth 197 2051
1256 6
1,972 126 26
o De-risk the business through diversification 299
648
82 3490
3203 440
o Strengthen the balance sheet 526
184
1364
o Generate upstream operational synergies 3QFY21 9MFY21 FY20 3QFY21 9MFY21 FY20

Tata Metaliks (TML): An established 200 Indian Steel and Wire Products (ISWP):
KTPA ductile iron pipe company in high A downstream steel producer of nails,
growth water infrastructure segment Net Debt1 (Rs. crores) Net debt/ EBITDA1 (x, LTM)
fasteners and welding products
TSLP TML ISWP

2,740
182 5.4
1,553

20
2591
1562
1.3
-29 -34
Dec'20 end Mar'20 end Mar'20 Jun'20 Sep'20 Dec'20

1 All numbers are on proforma basis without any inter company eliminations 22
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 3QFY21 2QFY21 3QFY20
performance Liquid Steel production (mn tons) 2.59 2.15 2.51
and key updates
Deliveries (mn tons) 2.11 2.27 2.35

Total revenue from operations 14,070 13,498 13,821

Raw material cost1 6,583 4,931 6,240

Change in inventories (1,179) 1,444 1,198

EBITDA (724) (462) (956)

EBITDA per ton (Rs.) (3,436) (2,036) (4,062)

Key ▪ Steel production improved 21%QoQ to replenish inventory ahead of improving market condition and
updates seasonally better 4QFY21

▪ Steel sales volume decreased 7%QoQ due to lower opening inventories and COVID-19 impact; mix
improved with higher deliveries in Automotive and Engineering segments

▪ Reported EBITDA loss increased with lower deliveries, reversal of wage support from the Netherlands
government which was recognized in 2QFY21 and higher provision for carbon emission in 3QFY21
Committed to find a ▪ Tata Steel Netherlands has launched a multi-year €300 million environmental improvement plan. It is
strategic sustainable also in discussions with the Netherlands government on future decarbonisation plans
solution
1. Raw material cost includes raw material consumed, and purchases of finished and semi-finished products
23
Business Outlook

▪ Global steel demand is expected to expand in 4QFY21 with improving economic activity across the regions
▪ India steel demand continues to be buoyant; supported by economic recovery, government spending, and easy liquidity
Steel
Demand ▪ Demand from Automotive sector is gradually improving in EU and UK while demand from Packaging and construction sectors
is expected to remain strong

▪ Re-imposition of mobility restrictions in certain economies and policy support tapering may impact recovery

▪ Asian steel prices are expected to improve post Chinese New Year holidays
Steel ▪ India steel prices to remain supported by strong international prices, robust raw material prices, and steel demand recovery in
prices seasonally stronger quarter

▪ EU and UK steel prices are expected to improve further in seasonally strong quarter; supported by strong global steel prices

▪ Seaborne iron ore prices are expected remain elevated with increased steel capacity utilization and continued supply
Iron Ore
tightness

Coking
Coal
▪ Coking coal prices should soften from Mar’21 once severe Australian weather concerns subside

24
Annexure – I: Rs Crores 3QFY21 2QFY21 Key Reasons
Tata Steel 38,806 36,476
Higher with improved steel realisation and better product mix across key
Income from operations
Consolidated entities, partially offset by lower deliveries

QoQ variations Other operating income 788 678 Higher primarily at Standalone and Tata Steel BSL
Primarily due to higher cost of Iron ore bearing material at TSE and TSBSL,
Raw materials consumed 12,443 11,224
and higher production at TSE; party offset by lower Coking coal cost
Purchases of finished, semis
1,270 880 Higher primarily at Standalone and Tata Steel Europe
& other products
Changes in inventories (801) 3,220 Primarily due to inventory replenishment at Tata Steel Europe
Employee benefits expenses 5,315 4,248 Higher primarily at Tata Steel Europe and Standalone
Higher mainly due to provision for carbon emission rights at Tata Steel
Other expenses 11,904 11,471 Europe; partially offset by favorable FX impact at overseas entities and cost
saving initiatives
Depreciation & amortisation 2,275 2,261 At par
Other income 215 222 At par
Finance cost 1,778 1,940 Lower with sharp deleveraging
Mainly due to charge under special Early Separation Scheme at Jharia
Exceptional Items (154) 43
location; partially offset by reversal of provisions no longer required
Tax 1,572 613 In-line with profitability level
Primarily on account of re-measurement gain/loss on actuarial valuation
Other comprehensive income (1,807) 609
and FX translation impact

Note: Consolidated figures don’t include NatSteel Holding and Tata Steel Thailand which are classified as ‘Assets Held for Sale’
25
Annexure – II: Rs Crores 3QFY21 2QFY21 Key Reasons
Tata Steel 17,670 16,110
Due to improved realisations and favourable mix; partially offset
Income from operations
Standalone QoQ by lower deliveries

variations Primarily due to higher sale of seconds steel and reversal of old
Other operating income 296 252
liabilities no longer required
Higher with improved product mix, partially offset by lower coal
Raw materials consumed 3,778 3,758
consumption cost
Purchases of finished, semis
387 199 Higher purchase of TMT and scrap
& other products
Changes in inventories 307 1,216 Due to higher liquidation of inventory in 2QFY21
Primarily due to higher bonus provision in 3Q; 2Q included
Employee benefits expenses 1,341 1,196
benefit from reversal of excess provisions made earlier
Other expenses 5,450 5,369 Primarily due to higher repair & maintenance expenses
Depreciation & amortisation 971 1,006 At par
Other income 141 186 Primarily due to lower income from dividend and interest income
Finance cost 800 856 Lower with reduction in debt level
Primarily due to charge under special Early Separation Scheme
Exceptional Items (226) (9)
at Jharia location
Tax 1,231 735 In-line with profitability level
Other comprehensive income 17 16 At par

26
Annexure – III: Rs Crores 3QFY21 2QFY21 Key Reasons
Tata Steel Long Primarily due to higher steel and DRI realisations, improved mix and
Products QoQ Income from operations 1,364 1,186 increased volume of pellet conversion for TSL; partially offset by lower
Steel and DRI deliveries
variations
Primarily due to lower DRI production, increase captive iron ore usage
Raw materials consumed 549 577
and lower coal price, partially offset by higher Crude steel production
Changes in inventories 1 85 2QFY21 had impact of sharp inventory decline

Employee benefits expenses 56 61 Due to performance bonus provision in 2Q and actuarial assumptions
Primarily due to increase in Royalty on higher captive Iron Ore
Other expenses 347 280
dispatches, improved product mix, and arcing
Depreciation & amortisation 85 79 At par

Other income 36 16 One off write-back with favourable judgement on entry tax litigation

Finance cost 57 63 Due to pre-payment of term loans and reduction in interest rate

Exceptional Items - -

Tax (0) (1) At par

Other comprehensive income 1 3 At par

27
Annexure – IV: Tata Steel Standalone: Key sustainability parameters

Coke Rate (kg/tcs) Specific Energy Consumption (Gcal/tcs) Specific Water Consumption (m3/tcs)

Good Good Good

434

7.29
399

5.54
393

6.63
375

6.31

6.29
6.27
367

367

6.21
362
360

353
352

352
348

5.89
345

4.75
5.68
5.67

5.67

5.63

5.60

5.54

4.27

4.15

3.96
3.90
3.83

3.68

3.27

2.80

2.67

2.17
1.98
FY17 FY18 FY19 FY20 1Q 2Q 3Q FY17 FY18 FY19 FY20 1Q 2Q 3Q FY17 FY18 FY19 FY20 1Q 2Q 3Q
FY21 FY21 FY21 FY21 FY21 FY21 FY21 FY21 FY21

CO2 Emission Intensity (tCO2/tcs) Specific Dust Emission (kg/tcs) Solid Waste utilisation (%)
2.65

0.66
Good Good Good

0.60

109.0

109.0
0.57
2.54

105.0
102.0

102.0
101.2
100.8

99.4
99.1

95.3
2.48

0.50

0.49
2.46
2.45

2.44

2.44

84.4
82.4
0.44

0.43

75.0
0.40

0.37

0.34
0.33
2.30
2.29

2.29

2.27

0.28

0.28
2.26

2.26

FY17 FY18 FY19 FY20 1Q 2Q 3Q FY17 FY18 FY19 FY20 1Q 2Q 3Q FY17 FY18 FY19 FY20 1Q 2Q 3Q
FY21 FY21 FY21 FY21 FY21 FY21 FY21 FY21 FY21

28
Annexure – V: Tata Steel Long Products: Consistent improvement in key operational parameters

Raw Material handling through Rake (%,

Coke rate (kg/thm, Indexed 1QFY20=100) PCI rate (kg/thm, Indexed 1QFY20=100) Indexed 1QFY20=100)
100 160 200

85 130 160
Good Good Good
70 100 120

55 70 80

40 40 40

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21
1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21
Power consumption1 (kwh/tcs, Indexed Electrode consumption1 (kg/tcs, Indexed Oil consumption at Mill2 (ltr/ts, Indexed
1QFY20=100) 1QFY20=100) 1QFY20=100)

100 140 100

85 120 75
Good Good Good
100
70 50
80
55 60 25

40 40 -
1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21
1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21

1. Increased due to Arcing

2. Increased due to lower availability Blast Furnace gas amid maintenance shutdowns 29
Investor relations contact

Investor enquiries :
Sandep Agrawal
Tel: +91 22 6665 0530
Email: sandep.agrawal@tatasteel.com

30