Investor Conference

Singapore March 8-10, 2004

Presentation Outline Economy and Steel Trends Impacting the Steel Industry Positioning of Tata Steel Cost Structure Comparisons Long Term Plans

Steel A Dominant Metal in the World

1000
Growth Asia CAGR (excl. Japan) 1993-98 : 4.3% 1998-03 : 9.2% Crude Steel in million tonnes

800

600
Growth World - CAGR 1993-98 : 1.3% 1998-03 : 4.0%

400

200

0 '91
Source: IISI

'94

'97

'00

'03

Importance of Steel

Steels of Yesterday
Dull Grey Commodity Useful but uninteresting Limited strength range Heavy Prone to rust

Steels of Today

Product of beauty Durable, Corrosion resistant Environment-friendly Recyclable, reusable Branded products Complex shapes Wide combinations of properties

USA: GDP & Steel Consumption

GDP in billion 1990 International Geary-Khamis dollars - Values in monetary units of each country converted into dollars at the purchasing-power-parity or PPP exchange rates estimated by Geary and Khamis, expressed in 1990 US dollars

9000 8000 7000

Steel Consumption

160 140 120 100 80

10 Period Moving Average Steel Consumption GDP

bn 1990 Int $

6000 5000 4000 3000 2000 1000

60 40 20

0 0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Source: IISI, Angus Maddison, The World Economy: A Millennial Perspective. OECD, 2001

mtpa

China & India: GDP & Steel Consumption

GDP in billion 1990 International Geary-Khamis dollars

5000 4500 4000 3500

China GDP

250

200

bn 1990 Int $

3000 2500 2000 1500 1000 500 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
India steel consumption India GDP China steel consumption

150 mtpa 100 50 0

Source: IISI, Angus Maddison, The World Economy: A Millennial Perspective. OECD, 2001

World Steel Consumption growing at 5 - 6%

1000 900 800

936 781 672

114 95 121 153 174

290

Million tonnes

700 600 500 400 300 200 100 0

483

487

493

1998

2001

2004(E)

China Rest of Asia(w/o Japan & Midd. East) Rest of the World

China ~ Share of global steel consumption from 13.5% in 1995 to 31% in 2004
Source: IISI

Global Steel Demand : Long term outlook

400 350 mmt 300 250 200 2002 2003 2004 2007
CAGR (2002-07) High Low - 12.2% Medium - 10.9% - 9.3%

China
290 257

375 (Hi) 355 (Med) 330 (Low)

211

Significant new capacity coming on line in China by end of 2005

World
1200 1100 mmt 1000 900 800 2002
Source: IISI CAGR (2002-07) High Low - 5.5% - 3.6%

1089 (Hi) 936 884 1041 (Med) 991 (Low)

Medium 4.6%

831

2003

2004

2007

India - Key Concerns

Budget deficit Spend on infrastructure Labour laws Growth in pockets GDP distribution

Global Steel Industry

Outlook : Positive Key Concerns

Global demand : 950 mill t 04 @ 6%

Steel sector - Still fragmented

Demand for Flats in China : Imports for sometime

Volatile prices - Metallics - Iron Ore - Coal - Logistics

Chinese steel production : 21% in 2003, 220 mill t +

Weaker Dollar -

costs in $

Continuing consolidation

Uncertainty : @ demand growth

India and China New drivers of global economy

India 1999 GDP (US$ Bn at PPP) GDP per head (US$ at PPP) Real GDP Growth (%) FDI (Inwards as % of GDP) External Debt (% of GDP) CPI (Average %)
Source: Economist Intelligence Unit Website

China 2003E 2951 2780 6.4 0.9 17.7 4.0 1999 4566 3650 7.1 3.9 15.3 -1.5 2003E 6675 5150 8.6 3.4 13.4 1.0

2252 2260 7.1 0.5 22.1 4.7

India - At an Inflection Point

Peace initiatives with Pakistan Integration in global economy Acceptance as world power Rapid economic growth Strong foreign exchange reserve Low inflation & interest rates Divestment of public sectors Boost in investments

India : Young & Growing

Source : The Economist Feb 21, 04

India Crude Steel Production

Volume

Time

Presentation Outline

Economy and Steel Trends Impacting the Steel Industry Positioning of Tata Steel Cost Structure Comparisons Long Term Plans

Trends impacting the Steel Industry

Consolidation Scrap availability, and substitutes Iron Ore demand and freight capacity Steel Demand : China, other developing regions Reducing steel tariffs and global integration of steel industry

Presentation Outline Economy and Steel Trends Impacting the Steel Industry Positioning of Tata Steel Cost Structure Comparisons Long Term Plans

Weighted Average Score

4.5
Posco BaoSteel Tata Steel Nucor Gerdau BHP Steel Severstal CST China Steel SDI CSN Anshan Steel Nippon Steel JFE

5.5

6.5

7.5

8.5

Source : World Steel Dynamics

World Class Steel Makers - 2003

Raw Material Consumption

5
Tonnes / t of Sal. Steel
4.52 4.46 4.26

15,000 tpd

4.33 4.06 4.01 3.93 3.68 3.56 3.20 3.19

3 FY'94 FY'96 FY'98 FY'00 FY'02 H1 FY'04

Technology Maturity Curve: Cold Rolling

% Production of Auto, Const., & White Goods
A. B. C. D. E. F. G. H. I. J. K. De-sulphurisation Slab Casting RH ECL CAPL Combined Blowing RHOB Vertical Caster Coupled PLTCM Hydrogen Annealing Scarfing Machine L. M. N. O. RH (Multi fun. Burner) EMS Plasma Heating Automatic Inspection

75 %

N M L K I J H

O O H G K D

47 %
Advantage of a late start

G F D AB
1965

IJ F A B C
85 90 95 2000 05

E
70

Tata Steel - Labour Productivity

300 250 200 150 100 50 0 FY'78 FY'83 FY'88 FY'93 FY'98 FY'03

Tonnes/man year

CAGR TILL FY92 : 0.5 % CAGR POST FY92 : 11.7 %

256

73

78

Product Mix Improvement

Apr-Dec FY 04 (Actual)
Market Attractiveness
H

50%

FP 58% LP 33%

Apr-Dec FY 03 (Actual)
Market Attractiveness
H

Competitive position

40%

FP 52% LP 17%

Competitive position

Dominant Position in CR OEM Market

Period : Apr - Dec
CRCA (Auto Direct)
100 80 60 40 20 0 FY'01 FY'02 FY'03 FY'04

CRCA (Auto Ancillaries)

44%
50% 40% 30%

80 60 40

33% 27% 18% 10%

40% 30% 20% 10% 0%

29% 15% 18%

20% 10% 0%

20 0 FY'01 FY'02 FY'03 FY'04

CR (Appliances)
8

Galvanized (Construction)
16%
20%

120 100 80

21% 17% 12% 5%

25% 20% 15% 10% 5% 0%

13%
4

8%

8%

10%

60 40 20 0

0% FY'01 FY'02 FY'03 FY'04

FY'01

FY'02

FY'03

FY'04

Market Share

000 tonnes

Gaining Market Share in Focus Segments

Period : Apr - Dec
HR (Auto Segment)
200 160 120 80 40 0 FY'01 FY'02 FY'03 FY'04

Galvanized (Auto)
75% 70% 65%

73% 64%

5 4 3 2 1 0

9%

12%

8%

4%
4%

53% 52%

60% 55% 50%

0%

FY'01

FY'02

FY'03

FY'04

Galvanized (Appliances)
2.5 2 1.5 1 0.5 0

High Carbon Wire Rods

15%
120 100

13%

55% 36% 24% 38%

60%

10%

6%
5%

80 60 40 20

40%

20%

0% FY'01 FY'02 FY'03 FY'04

0% FY'01 FY'02 FY'03 FY'04

Market Share

000 tonnes

Started producing Galvanized (Auto) and Galvanized (Appliances) since FY03 only

Performance : Apr-Dec, Fy04

Crude Steel Production Sales Volume

3.4 3.2 3 2.8 2.6

Mn tons

3 3.17 2.99
YoY 5.8%

Mn tons

2.8 2.6 2.4 2.2 2

2.75

2.91

2.51

2.82

YoY 5.7%

Fy'02

Fy'03

Fy'04

Fy'02

Fy'03

Fy'04

Revenue

Operating Profit / Net Profit 1827 YoY

600 500 400 300 200 100 0

2000 1500 1000 500 0

US $ Mn 1142
86 1057

US $ Mn 309 191
17 Fy'02 112 Fy'03
Net Profit

1402
184 1219

230 1598

501

YoY 61.9% YoY

30.3%

242 Fy'04

116.6%

Fy'02

Fy'03 Domestic

Fy'04 Exports

Continuous Investment
2002-03

Capex >USD $ 4.5 billion during 1980 - 2003

F Blast Furnace Billet Caster #1 of LD #1

CRM (1998-02)

Rolling Programme (1981-02)

Pickling Line Galvanising Line

Phase 4 (1996-98) Phase 3 Expansion of Flat Products to 2 MT (1990-94) Phase 2 (1985-88) Phase 1 (1980-83)
LD Shop 1 Hot Strip Mill (1 MT) LD Shop 2

Sinter Plant Wire Rod Mill

EBIDTA Comparison
50 40
Net Profit % of Net Sales

30 20 10 0 FY'98 Tata Steel FY'99 FY'00 China Steel FY'01 FY'02 FY'03 Arcelor FY'04 Nucor

POSCO

Source: Company web-sites and Analyst reports

Apr-Dec FY04 Vs Apr-Dec FY03 : Highlights

Turnover Exports Revenue PBT PAT EVA Positive EPS

: USD $1,827 million : USD $ 230 million : USD $ 367 million : USD $ 242 million : USD $ 112 million : USD $ 0.66

( 30%) ( 25%) (172%) (117%) (183%) (117%)

Note:- % increase w.r.t previous period is in terms of USD $

Key Financial Ratios

Apr-Dec FY'03 25.44% 8.97% 0.30 1.69 26.43% 2.05% 317 1.39 5.56 1.20 44 46 42 Category
Unit % % USD $ USD $ % % USD $ million Times Times

Profitability Shareholder Returns Cash Generation Stability

EBIDTA Margin * Net Profit Margin * Earnings per Share Net Worth per share Return on Equity ** EVA ** EBIDTA Debt : Equity *** Interest Coverage

Apr-Dec FY'04 32.16% 14.89% 0.66 2.53 39.79% 5.36% 523 0.86 11.39 1.47 28 41 18

Activity

Times Fixed AssetsTurnover Avg Debtors Velocity No of days Avg Inventory Turnover No of days Avg Net Working No of days Capital Turnover

* EBIDTA margin and Net Profit Margin calculated as % of Net sales (Gross Sales Excise duty) ** Annualised *** Equity = Share Capital + Reserves & Surplus Miscellaneous expenditure. Debt = Secured loans + Unsecured loans

Tata Steel : Sustainable Performance

Apr-Dec FY04 Performance Highest ever sales Saleable steel production crossed 3 million tonnes Richer product mix Better realizations Competitive cost position Branded products at 21% of Gross Turnover Advantages Own raw materials On-going cost reduction initiatives Re-engineered business process Not dependent on exports Strong Balance Sheet Operates in a high growth market

Tata Steel - Growing Crude Steel Production

8.00
Million tonnes

7.4

6.00

5.0
`

4.3 4.1 4.2 3.3

4.00

2.8 2.3
2.00 FY'91 FY'93 FY'95 FY'97 FY'99 FY'01 FY'03 FY'05 FY'07

Enriched Product Mix

HR 34% Semis 3%
HR 38%

CR 21%

CR 21%

Semis 7%

Galv. 8%

Longs 34%

5.0 million tonnes 06

(E)
Longs 25%

Galv. 9%

3.82 million tonnes

03 (Actual)

Enhancing Focus on Branded Products

Period : Apr - Dec
500

Tata Shaktee GC + Tata Steelium CR

22%

40

000 Tonnes

400 300 200 10 0 0 F Y' 0 1 F Y' 0 2 F Y' 0 3 3%

Percentage

30 20

6%

7% 10 0 F Y' 0 4

B r a n d e d P r o d u c t s ( To n n a g e )

% B r a n d e d , o f To t a l P r o d u c t s

50 0

Tata Tiscon ( Rebars )

19%

31%

40 30

000 Tonnes

400 300 200 10 0 0 F Y '0 1 F Y '0 2 F Y '0 3 F Y '0 4 7% 14%

Percentage

20 10 0

Branding in

Enhancing Sales
6.00
Million tonnes

5.5

5.00

4.4
4.00
`

3.9 4.0 3.2 3.4 3.5

3.00

2.5 2.6 2.1 2.2

2.8

2.9

2.00 FY 94 FY 96 FY 98 FY 00 FY 02 FY 04 FY 06(E)

Presentation Outline

Economy and Steel Mega Trends Impacting the Steel Industry Positioning of Tata Steel Cost Structure Comparisons Long Term Plans

International Cost Competitiveness - Flats

CSN Tata Steel Tata Steel Brazil Posco K'wang Korea BAO Shanghai China

$/t
COKE SINTER HOT METAL LIQUID STEEL SLAB CASTER H R COIL

Act. FY'03

CRU - ESTIMATE 2003

60 16 78 124 132 158

74 18 96 146 160 204

101 21 96 147 161 199

101 39 119 161 171 219

91 37 134 182 193 226

Re/ $ =48.5
Source : CRU

Cost Competitiveness
Indexed
210

180

Cumulative inflation
150

120 90

Cost

60

Real cost

30 93 95 97 99 '01

Presentation Outline Economy and Steel Trends Impacting the Steel Industry Positioning of Tata Steel Cost Structure Comparisons Long Term Plans

Plan : 2004 to 2010

Maximise the potential at Jamshedpur Move up the value chain; strong brands Establish 5~6 mtpa capacity at other locations in India Establish global presence : 4~5 mtpa; Multi location global presence in auto and construction Connect domestic and global operations Grow the minerals business into a global entity

World Crude Steel Production

1000 100

750

75 No of Countries

Million tpa

500

50

250

25

0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Crude Steel Production

Source: IISI

No of Countries

No of Countries > 5 mtpa

De-Integrated Production
De-integration of the steel value chain - Mine head production Reduction in costs ~ $ 25-50/t Investments in developing countries represents lower risk

CONDITIONS FAVOURING INDIA Access to high quality iron ore Proximity to SE Asian markets Avoidance of high costs associated with deep sea ports. Reduced freight costs Skilled and innovative workforce, globally competitive labour costs

Jamshedpur

Haldia Iron Ore ~ 10 Bill. T

Dhamra
Distance from (Kms) Jamshedpur (present) Dhamra 372 372 522 290

Paradip

Jamshedpur (post D-B line) Joda (present) Joda (post D-B line)

Drivers of the Global Economy

Tata Steel : The Path Forward

Dominant Asian low cost steel major

Value addition through de-integrated production

Dominating high end flats market in India

Strong player in construction segment

Alliances with leaders of steel technology

A Globally Competitive Business Model

Ranked consistently amongst the top three steel producers Amongst the lowest cash operating costs, ongoing cost reduction programs, high profitability and strong balance sheet Privileged access to raw materials, near its production facilities In a high growth market High quality products, in premium segments of the market Position of strength in the home market

Statements in this presentation describing the Companys objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys 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 Government regulations, tax laws and other statutes and incidental factors

Thank You