1 AGENDA 1 Strategic Roadmap 2030 2:30pm- 6:30pm IST 2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG
6 Technology and Innovation-led Transformation
7 Q&A Session – II
2 Safe harbour statement
Statements in this presentation describing the Company’s performance may 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.
3 1 Strategic Roadmap 2030
2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG Mr. T V Narendran
6 Technology and Innovation-led Transformation CEO & Managing Director Tata Steel 7 Q&A Session – II
4 Tata Steel is focused on creating sustainable value
Safety remains our Become Culturally priority future ready
Leadership Sustainability in India is core to our business
Robust financial health
Employee well being Successful integration of Net Debt/EBITDA <2.5 in Circular business models Only steel company with has been our No. 1 TSBSL & TSLP FY21 end - established 0.5 MTPA three assets1 recognized as priority during the scrap recycling unit Global Lighthouses by WEF pandemic Setup commercial mining Cumulative operational for adoption of 4th IR business improvement savings of Rs Long term roadmap Technologies Sustained focus on 21,400+ crores over last 5 created for safety: reduction in red GraphITI: one of the years in Tata Steel India de-carbonization Embedding a culture of risk incidents by 82% world’s largest single site Agility, Innovation, Digital & in last 3 years Graphene production Structural interventions at Tata Technology leadership plant set up in FY21 Steel Europe; turns cash positive in FY21
Red risks are incidents with fatality potential; Tata Steel India = Tata Steel Standalone + TSBSL + TSLP; TSBSL – Tata Steel BSL Limited; TSLP – Tata Steel Long Products 5 Limited; TSE – Tata Steel Europe; ; MTPA – Million tons per annum; 13 assets – Ijmuiden, Kalinganagar, Jamshedpur; WEF – World Economic Forum; IR – Industrial revolution Global Steel Industry witnessing structural changes: Steel prices to stabilize at higher levels than in the last decade
Capacity utilization is improving with closure China Net Exports and HRC of inefficient and polluting assets Export Prices
Capacity utilisation, % (LHS) Overcapacity, MTPA (RHS) China HRC FOB quarterly Price, $/ton (LHS) 90% 1000 1000 China Net Exports, MT (RHS) 120
100 800 800 80% 80 600 600 70% 60 400 400 40 60% 200 200 20
50% 0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Govt spending on Growing de-carbonization Geopolitical events will India steel demand continues to infrastructure as response to focus, especially in Europe continue to impact be buoyant (expected grow by slowdown, globally, will and China, will increase steel international raw material ~20% in CY21); supported by increase steel consumption companies’ cost of operations prices economic recovery, government spending and improved liquidity
HRC – Hot rolled coil; FOB – Free on board (incoterm) 6 Our strategies for success are informed by opportunities presented by megatrends
Urbanization
▪ Increase in number of Megacities
Demographic Change Shifting Economic Power
▪ Increasing population and the ▪ Rising economic disparities burgeoning youth population ▪ Shift in Global Economic Power ▪ The Talent Cloud and their growing from West to East ‘customer’ like expectations
Climate Change Technology
▪ Changing climatic patterns ▪ Connected Living; Industry 4.0 ▪ Decarbonization ▪ Evolving preferences of the hyper-connected consumers
7 Over this decade, Tata Steel aims to be the most respected and valuable steel company globally
Leadership in India: Most respected and preferred by discerning customers Consolidate position as global cost leader ▪ Raw material self-sufficiency ▪ Increase capacity of India operations through organic and inorganic growth ▪ Cost improvement & value enhancement through structural interventions & continuous improvement ▪ Attain and retain Leadership in chosen segments
Attain leadership position in adjacent Leadership in sustainability businesses ▪ Benchmark in CO2 emissions ▪ Services and Solutions ▪ Benchmark in specific water consumption ▪ New Materials Business ▪ Value creation using Circular Economy business ▪ Commercial mining models
Best Place to work Be the Digital Leader in Top 5 in technology Fostering a future for in Manufacturing steel industry globally in steel industry globally ready culture in India
8 Tata Steel’s strategy is pivoted around capitalizing on India Growth Story…
Targeting value accretive growth in India India to be the dominant manufacturing base for Tata Steel going forward
2010: 22 MTPA 2020: 34 MTPA 2030F: 55 MTPA Production capacity (MTPA)
29% 57% 73%
India Europe South –East Asia
Optimizing product portfolio is a key target in India
Production capacity (MTPA) Flat Long 30
15.6 10 3.7 2.9 4 TSK – (organic / 2018 TSBSL TSLP 2020 Phase II 2025 2030 2010 2020 2030F Inorganic) / EAF
9 TSBSL – Tata Steel BSL; TSLP – Tata Steel Long Products.; TSK – Tata Steel Kalinganagar; EAF – Electric Arc Furnace; … with a continued strong market presence
Attain and retain Leadership in chosen segments (current and new) ▪ Market share in ‘Automotive’ grew to 58% in FY21 from 50% in FY20 ▪ High-end engineering segment grew by 46%YoY in FY21
Reinventing the route to connect, transact and engage with customers ▪ Connected platforms: Aashiyana (130% YoY growth to reach sales of Rs. 726 crores in FY21), COMPASS, DigECA and Sampoorna ▪ Synergy across the Group: Basera and Nexarc (Digital B2B platform & one-stop solution for emerging businesses)
Technology and knowledge intensive differentiation in marketplace ▪ Steel for future mobility and Ready-to-paint technology ▪ Graphene and Composites
10 Continuous structural and operational improvements key to achieve our financial goals
Savings of Rs 21,400+ crores over last 5 years through Interventions planned over the operation efficiency improvement in Tata Steel India next 5 years
Savings (Rs crores) 6,545 5,369 ▪ Focus on augmenting raw material production capacity 3,406 3,556 2,594 ▪ Strengthen logistics network and upstream of steel manufacturing
▪ Continue to focus on reducing fixed cost FY 17 FY 18 FY 19 FY 20 FY 21
Structural interventions has resulted in TSE becoming cash positive
Free cash flow (Rs crores) 130 ▪ Continue with the ongoing transformation program in TSE -603 ▪ Complete separation of UK & Netherlands -2,026 operations to focus profit & loss accountability at geography level -3,689 FY18 FY19 FY20 FY21
Tata Steel India – Tata Steel Standalone + Tata Steel BSL + Tata Steel Long Products; TSE – Tata Steel Europe 11 We continue to focus and invest in capabilities to attain leadership position in Adjacent Businesses
Services & Solutions New Material Business Commercial Mining
3 material verticals – composites, 3 chromite mines in Odisha Pravesh – Doors and windows graphene & advanced ceramics 450 KTPA of ferro chrome production
Future growth engines - a) Chrome Nest-in – solutions for society Focus on building an ecosystem of business, b) MDO business, c) manufacturing and technology partners Strategic minerals play
KTPA – 1000 tons per annum; MDO – Mine Developer and Operator 12 Sustainability – a strategic imperative for a ‘hard to abate’ sector
Sustainability is now deeply …intent to demonstrate leadership position in sustainability over this decade embedded in Tata Steel Goals for 2025 Goals for 2030 ecosystem …
▪ TSI: Achieve <1.8 tCO2 /tcs Climate ▪ TSI: Achieve <2 tCO2 carbon emission Long term decarbonization change /tcs carbon emission ▪ TSE: 30% reduction in specific roadmap created emissions over 2020
Pursuing low carbon technologies ▪ TSI: Achieve specific freshwater ▪ TSI: Achieve specific consumption of <1.5 m3/tcs, aim for freshwater consumption Circular Economy integrated as Water water neutrality of 2 m3/tcs part of business model ▪ TSE: EU benchmark for water intensity
Deploying Responsible Supply Chain Policy across value chain Circular ▪ Achieve material ▪ Build 5 MTPA recycling business efficiency of 99% Improving transparency and Economy disclosures
▪ Develop and implement Biodiversity Management ▪ Aspire for no net loss of biodiversity Bio-diversity Plans for all operations sites
TSI – Tata Steel India (Tata Steel standalone, TSBSL and TSLPL); TSE – Tata Steel Europe; tcs – tons of crude steel; material efficiency is defined as percentage of crude 13 steel and co-products (by-products) material out of total output material; MTPA – million tons per annum We aspire for leadership position in Technology and Digital
Infrastructure and enablers in place Aspirations for this decade
✓ Identified 7 TLAs with 40+ projects ▪ Deliver ‘new to world’ products and solutions ✓ Focussed on leveraging external eco-system through outcome driven collaborations ▪ Deploy new technologies at scale addressing sustainability Top 5 in ✓ Monetisation of in-house IPs technology in ▪ Build industry leading technology management steel industry ✓ Building organizational capability on innovation processes and capabilities globally ✓ 45% of the patents have been granted in last 5 years
▪ Enable remote operations for key processes ✓ Data maturity is now close to process maturity and operations
✓ Enabled unlocking and creation of value ▪ Drive 65-70% of value creation through digital Be the Digital transformation initiatives by FY30 Leader in steel ✓ Platformization – Connected assets, workforce industry and e-commerce platforms ▪ Enterprise management through business globally ✓ Adoption of 4th IR Technologies platforms – enhancing stakeholder experience and ensuring global optima
TLAs – Technology Leadership Areas; IP – Intellectual Property; IR – Industrial Revolution 14 Becoming culturally future ready will provide the platform for future value creation
Strengthening enablers for Future of ‘Work’, ‘Workforce’ and ‘Workplace’
Culture of Safety, Continuous Agility, Innovation and improvement, Ethics & Giving Technology leadership back to the community Certified as India’s Best Digital and Anaytics as a Workplaces by Progress towards way of life ‘Great Place to benchmark productivity work’ for the 4th time. Unique policies deployed to Enabling capabilities and drive diversity and inclusion career to unleash potential
Culture of safety Institutionalise culture Technology and Be Great Place to Work Aspirations ingrained in the of Agility & knowledge-based #1 in Manufacturing, Top for this decade org - Achieve Breakthrough differentiation in 10 among all companies Zero Harm innovation whatever we do in India
15 We are on our way to build the Tata Steel of the Future
▪ Strong, non-cyclical free cash flows driving best-in-class valuations
▪ Recognized as technology & innovation leader by customers, peers, employees, investors
▪ Leadership in sustainable practices: low carbon business model at scale
Most respected and ▪ Customer obsessed organization with world class operational performance valuable steel company in the world by 2030
▪ Culture and values for the next generation
▪ Global benchmark in corporate citizenship
16 1 Strategic Roadmap 2030
2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG Mr. Koushik Chatterjee
6 Technology and Innovation-led Transformation Executive Director & Chief Financial Officer 7 Q&A Session – II Tata Steel
17 Recap of financial year 2021
Deliveries (mn tons) EBITDA (Rs. crores) EBITDA (%)
30,892 29,770 19 20 23.88 25.27 26.79 26.68 28.50 14 17 22,045 12 17,025 17,735
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Free cash flow (Rs. crores) Interest Coverage Ratio Gross Debt /Equity (x)
23,700 4.1 3.9 3.9 1.98 1.82 3.4 1.51 1.58 8,839 2.4 1.15 -2,588 -4,608 1,736
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Gross Debt (Rs. crores) ROIC (%)
116,328 100,816 92,147 88,501 20 83,014 13 16 15 6
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 18 ROIC: Return on Invested Capital Pillars for Tata Steel’s financial strategy
Maximizing Leverage return on Invested Optimize capital › Target Investment › Sector Capital structure and cost Grade Metrices, Leading Liquidity for › De-risk & Build Business Disruption Returns Resilience Portfolio Restructuring Minimize working capital
Align consumption KPIs to best-in-class
Minimize idle costs › Global › Future De-bottleneck Benchmark Ready and Minimize purchased intermediates Profitability Margin management Green Finance Cost take-out
Framework Monetize resources
19 Balance sheet management – de-risked and resilient
Value Drivers FY 20-21 Actions FY 21-22 Priorities
Net debt reduction by > US$2 billion gross debt reduction; Deleveraging ~ US$4 billion prioritize off-shore debt pre-payment
Called residual Partly paid Raising Equity amount ~Rs.3,000 crores Not envisaged
Working capital Cash release of ~ Drive working capital management Management Rs.9,400 crores in upcycle
Capex ~ Rs.7,000 crores ~ Rs.10,000 -12,000 crores
20 Capital allocation – focus on sector leading returns
Rs. 80,000 crores Allocation Spend over Last 5 years 82% of Investments in India is prioritised Running the Business Working Responsibly towards Growth (Sustenance) (License to Operate ) 1% 2% India Operations ~ 65% 22% 25% 4% of Investments in Tata Steel Europe is towards Europe Enhance Market Invest in New Sustenance & South East Asia Competitiveness Business Environment Through Growth (Internal Start-ups) Others 12% 70% 0.4% Carbon adjusted 76% Project IRR threshold for capital allocation
India Steel Production New & Allied Business Downstream Portfolio in India
› Complete Kalinganagar expansion @ › Electric arc furnace low carbon Steel › Cold Rolling Mill – From 4.3 MTPA to 6.5 MTPA Future Rs.48,000/ton of Capex › Composites › Ductile Iron Pipes - From 0.2 MTPA to 1 MTPA › Invest in Raw Material Expansion @ › Graphene › Tinplate – From 0.4 MTPA to 1 MTPA Investments Rs.2,600/ton to 50 MTPA of Iron Ore › Medical Materials › Tubes – From 1.3 MTPA to 2 MTPA Focus › Services and Solutions › Wires – From 0.45 MTPA to 1 MTPA › Ferro chrome business Average India Capital Expenditure estimated @ Rs. 10,000- 12,000 crores per annum over next 5 years (excluding potential acquisitions) 21 Portfolio management
Clusterization Tata Steel Investing in New European Simplification of Indian Business BSL Merger Growth Engines Business
Optimisation of network Integration New Materials Separate UK & 100 entities liquidated/ and resources Netherlands merged over 2 year Cost Control Steel Recycling & Common Electric Arc Furnace New organization and Continuous customer face Synergies governance structures Journey Infrastructure and Improved financial Logistics Overhead and fixed management costs reduction Port Project Discussions with Governments on De- carbonization roadmap & Investment
Disciplined Capital allocation 22 Operational excellence through continuous improvement culture
Figs in Rs. crores
5 year cost savings at Transformation programme at Tata Steel India operations Tata Steel Europe
Cost and Supply chain Optimisation Overhead cost reduction 3556 6545 5369
332 2252 2177 1,916 505 1,590 960 542 755 4,298 3,406 1,635 2,594 2,801 3,274 1,292
FY17 FY18 FY19 FY20 FY21 FY20 FY21 TSN TSUK TSL TSBSL TSLP
FY2022 Target: FY2022 Target: Fixed cost reduction of ~Rs.2,000 crores Fixed cost reduction of ~£200 mn
Target to reduce India operation fixed Cost by ~10 % over the medium term
23 TSL: Tata Steel Standalone; TSBSL: Tata Steel BSL; TSLP: Tata Steel Long Products; TSN: Tata Steel Netherlands; TSUK: Tata Steel UK Building blocks of sustainable and responsible finance
Strategic ▪ Transition to Low carbon business with pathway milestones Alignment
Climate aligned Capital Allocation ▪ Carbon Pricing integral in decision making
Assessment of Risk and ▪ Reporting based on TCFD Framework Opportunities
▪ Integrated Reporting Reporting of ESG ▪ Dow Jones Sustainability Index Performance ▪ CDP (Carbon Disclosure Project)
Financing ▪ Align and Report Fund based Green Finance Framework
24 Pathway for future financial strategy
▪ Strong earnings and cashflow performance expected ▪ Investment Grade Financial Metrics Short-term ▪ Significant reduction in Overseas debt FY2022 ▪ Continued focus on Capital allocation and cashflow management
Target Leverage Target RoIC Dividend Policy
Net Debt/EBITDA at 2x Robust dividend 15% Interest Cover at 4x pay-out
Last 5 years performance EBITDA/Interest RoIC (%) Dividend (Rs. crores) Medium-term Net Debt/EBITDA 2,996 (Across cycle 19.6% 2,081 targets) 16.0% 4.82 13.3% 15.0% 1,689 3.74 4.49 4.35 1,447 1,417 2.97 6.2% 4.25 3.14 3.19 5.91 2.44
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
25 RoIC: Return on Invested Capital Sum-Up
Leverage Capital Allocation Industry Benchmark Initiate gradual Target Financial Management towards Growth and Return Profile Greening of Balance Metrics in line with remains an De-risking with Sheet Investment Grade Enterprise Priority additional capacity Rating
26 1 Strategic Roadmap 2030
2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG Mr. Peeyush Gupta
6 Technology and Innovation-led Transformation Vice President Steel Marketing & Sales 7 Q&A Session – II
27 Global Steel Industry has witnessed four key structural changes in 2020
Crude Steel Output & Utilization (mn tons, %) Total World Exports (%) 120% 470 85% 85% 457 439 401 400 460 82% 81% Others China 100% 450 77% 76% India 78% 77% World 80% 440 51% 51% 51% 48% 430Turkey 75% 73% ROW 69% 60% 420Germany 66% 4% 4% 410 2% 4% 3% 5% 5% South Korea 40% 6% 6% 5% 5% 6% Rise in gap 1880 1878 1940 8% 400 1826 Fall in China’s 7% 7% 7% Russia between China & ROW 7% 7% 8% 9% 390 897 879 813 850 exports 20% 8% 8% 8% ROW 7% 380Japan 928 1001 1065 1090 China 15% 15% 13% 12% 0% 370China CY18 CY19 CY20 CY21f CY18 CY19 CY20 CY21f
Steel Demand (mn tons, % growth) HRC – RM Spread ($/t) Spread (India CFR from JP/KR)@HCC Aus FOB Spread (India CFR from China)@HCC China Local 1045 China ROW China HRC CFR +0.3% +5.8% 789 JP/KR HRC CFR 986 609 1874 553 523 517 1712 1775 1772 510 473 478 712 592 849 Varied Spread 537 521 519 876 863 777 500 463 513 467 ROW demand to levels 334 338 254 remain below (China vs Rest) 190 177 178 184 177 912 995 1025 155 152 157 172 pre-pandemic 836
CY18 CY19 CY20 CY21f Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22
Source: WSA, Steelmint, Platts, CRU, Team Analysis; ROW: Rest of World 28 Indian Steel Industry has also witnessed four significant developments in 2020
Crude Steel Output & Utilization (mn tons, %) Steel (Finished + Semis) Net Exports (mn tons)
60% 63% 63% 64% ISP (% Share) 17.4 14.0 SSP (% Share) 11.2 40% 37% 37% 36% 8.8 7.2 Crude Steel 5.0 200 Capacity (Mn 8.5 5.0 78% 80% 150 75% 71% 77% tons) Utilization levels Crude Steel India net 4.0 12.3 100 9.0 remained high 149 40% Production (Mnt) exporter 50 142 143 143 111 109 103 116 -0.2 Net Exports Exports Imports Utilization (%) 0 0% FY19 FY20 FY21 FY22f FY19 FY20 FY21 FY22f
Steel Consumption (mn tons) Domestic HRC Delhi Imported HRC Mumbai (Rs./t) (Rs./t) 66,250 1,103 JP/KR -6.0% +13.7% China 985 107 Alloy/SS 98.7 100.2 94.1 36,20 0 462 Steel demand to 51.0 Long Carbon Domestic Price ↑ By Rs 30,050/t 460 44.7 48.3 47.4 (JP/KR ↑ By ~$643/t) cross pre- at a discount (~$410/t) (China ↑ By ~$523/t) pandemic levels Flat Carbon 46.3 45.1 40.5 49.0
FY19 FY20 FY21 FY22f
Oct-20 Apr-21
Oct-20
Apr-21
Jun-20 Jun-21
Jun-20 Jun-21
Feb-21
Feb-21
Dec-20
Aug-20
Dec-20 Aug-20
Source: JPC, SteelMint, Team Analysis; ISP: Integrated Steel Producer; SSP: Secondary steel producer 29 Tata Steel caters to ~87% of domestic market and has a unique way of segmenting the market
Sector-wise India steel demand Tata Steel: Sector-wise domestic sales (FY21, 94.1 mn tons) (FY21, 13.7 mn tons)
7% 6% 2% Construction Construction 1% Capital Goods 7% Capital Goods 26% Automotive Automotive 46% Construction 9% 61% …However, Tata General Engg. General Engg. Steel has a consumes most 21% Consumer Durables of steel in Consumer Durables significant play in automotive 4% Railways India… 10% Railways
Sector-wise India steel demand Vertical-wise Tata Steel domestic Domestic Sale Mix* (FY21, 94.1 mn tons) sales (FY21, Steel only) High-End Automotive 94.1 Branded Bars & Rods Structurals Rails B2B - Automotive Alloy/ 6.2 Products & B2C Stainless Retail WR, Engg. Segments,
LP (47.4) 39 1.5 47.4 6.5 16% B2B - Industrial Downstream Sales Long 24% Products & VAP & Base Automotive Carbon Projects Currently Not served by Tata Steel
Present across B2C B2ECA Carbon Steel Carbon multiple products Steel Carbon 14% Flat Carbon 40.5 FP 47%
17 8.6 6.7 Industrial Projects 3.9 (40.5) 4.2 B2ECA Increasing HR Commercial margin ASU HR CR Coated Plate Others hierarchy
Others: Tinplate; Electrical Steel, Large Dia. Pipes. Tata Steel makes Tinplate through its subsidiary ‘Tinplate company of India Ltd’. Tata Steel is not present in Electrical Steel , Structurals and stainless steel ; Industrial Projects include TMT, Semis, CR-IP, Galv-IP & FHCR-IP ; *TSL Standalone domestic sales for FY21; WR: Wire Rods; VAP: Value 30 Added Products (Hot Rolled); ASU: Apparent Steel Use HR: Hot Rolled; CR: Cold Rolled; ECA: Emerging Corporate Accounts Demonstrated track record of superior growth as compared to the market…with consistent and strategic exports since 1988
150 24 Tata Steel domestic sales (mn tons) [FY10-FY21 CAGR: 8.1%] (RHS) Tata Steel export sales (mn tons) (RHS) 20 120 India market demand (mn tons) [FY10-FY21 CAGR: 4.3%] (LHS) 99 100 91 94 16 90 82 84 14.6 14.6 66 13.7 12 59 11.0 60 10.2 9.4 8
30 5.8 6.2 3.7 2.4 4 1.2 1.7 0.4 0.3 0.2 0.7 0 0 FY10 FY11 FY16 FY17 FY18 FY19 FY20 FY21
Jamshedpur expansion, Thin slab Caster, Continuous Galvanizing Line # 3, Continuous Annealing Line Kalinganagar Phase I Bhushan Steel acquisition Usha Martin’s steel business acquisition
31 Market leadership enabled by capacity enhancement, brand rejuvenation and de-commoditization
60% 54%
45% 51% 58% 40% 62% 1 in every 3 52% 1 in every 2 LPG outer panels of 2779 472 cylinders in India 55% 53% 49% 62% cars 1911 1873 2002 293 411 434 365 195 172 349 2 in every 3 90 93 71 68 2 in every 3 continuous wheels FY18 FY19 FY20 FY21 welding FY18 FY19 FY20 FY21 x% Auto Sales (KT) electrodes LPG Sales (KT) LPG Market Share # x% Auto FP Market Share Hi end sales (KT) CWE (KT) x% CWE Market Share
14% 14% 15% 19% 20% 15% 18% 21%
1st in the world laser marking on 1 out of 2 GC 18% 13% 1658 15% 15% 1387 1439 1405 1297 HR Coils (2019) 1401 1525 1488 roofs 35% 44% 42% 45% 1st in branding 611 579 627 Tata Tiscon - Rs. 294 262 255 519 223 CR (2003) 8,000 crores Brand FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Tiscon Retail Sales (KT) x% Tiscon Market Share Tata Astrum Sales (KT) x% Astrum Market Share Tata Shaktee Sales (KT) x% Shaktee Market Share Tata Steelium Sales (KT) x% Steelium Market Share
All Sales and % market share includes Tata Steel BSL from FY19 onwards; #: Hi end sales include Hi tensile, Coated and Skin; part of overall Automotive sales ; 32 CWE: Continuous Welding Electrodes Leadership initiatives across customer groups
B2B: Customer engagement & investment in technology
B2C: Delivering superior Multiple routes to connect, experience on multiple points transact & engage of “friction”
Services & Solutions: “Serving B2ECA: Developing long term Consumers better” & “Extend partnership with SMEs Differentiation”
33 Leadership Enabler – 1: Tata Steel has designed multiple routes to market to connect, transact and engage with customer groups and enabled digitally
Marketing & Sales Channel Partners and corresponding customer groups 6 Hubs1 and 14 spokes2
Tata Centre Direct (Corporate Route B2B 50+ Product Application Engineers & Marketing
Covering 95% districts across India
Zonal Sales Distributors B2ECA Offices (4) 100% fleet covered by vehicle tracking system
Service centers for last point processing
Regional Sales Offices Distributors Dealers (27) B2C TOC3 enabled supply chain
Powered by digital technology – platform based approach
1. Hubs: large warehouses, 2. Spokes: Small warehouses ; 3. Theory of constraints; ECA: Emerging customer accounts (small & medium enterprises) 34 B2B Leadership Enabler – 2: Customer engagement and investment in technology
Advanced Technical Support Investment in Assets
Δ Value Analysis & Value Engineering § Investments in new facilities: JCAPCPL, 2 3 TSK CRM § Early Vendor Involvement for new launches § Extensive network of steel processing centres B2B
1 4 Customer Engagement Customer Obsession Δ Cross-functional engagement § Despatch efficiency through CSTs Δ Pioneering Practices Δ COMPASS : B2B Digital platform Δ Platforms for knowledge sharing: § Unique in India Driving Steel, Technology meets, Construction Conclave, Mat-e-Reality
CAPL: Continuous Annealing & Processing Line; TSK: Tata Steel Kalinganagar; CST: Customer Service Teams; 35 B2ECA Leadership Enabler – 3: Developing long term partnership through micro-segmentation and delivering delight to SMEs
Customer Engagement Creating differentiation
Δ Ecafez initiatives § Making customer smile 2 3 § Forum of industry experts § DIGECA: Enquiry management and analytics B2ECA
1 4
Micro-segmentation Augmenting channel
Δ Deep dive in 40+ micro Segment § ACE+ certified service centres Δ Pioneering Practices § Unique in India Δ ECA financing initiative – Urja
SME: Small and Medium Enterprises; ECA: Emerging Corporate Accounts; VIU: Value in Use; ACE: Adequate, Competent, Excellent 36 B2C Leadership Enabler – 4: Delivering superior consumer experience on multiple points of “friction”
Providing convenience Creating differentiation
Δ Customized solutions: Tiscon § Ask Expert 2 3 Superlinks § Tata Tiscon – 600 MPa, Graphene coated § Aashiyana : B2C platform B2C
1 4
Generating Awareness Augmenting channel Δ Group Action Mission: Kisan § RVM (Retail Value Management) – digitally Kutumb (Rallis); Gao Chalo (TGBL), Δ Pioneering Practices BASERA enabled analytics § Unique in India Δ Ek kadam parivartan ki ore: Thatch Δ Channel capability building: Pathshala, to Steel Gurukul, GenY, etc.
TGBL: Tata Global Beverages Limited 37 S&S Leadership Enabler – 5: “Serving Consumers better” and “Extend Differentiation”
Business Context Some of our S&S Challenge of improving offerings profitability Tata Pravesh Doors Tata Pravesh Windows Raso-e – Modular kitchen MobiNest-Portable cabins
Narrowing Product Differentiation
AquaNest – Commoditisation of Drinking-water- EzyNest AgroNest – Smart Anganwadi - Rural Quarantine Cabins technology vending kiosk – Modular Toilet Onion Warehouse child care centre for Covid care
Ease of market access & Nest-In Competition Construction Solutions Pravesh
Rebar cost /Sq. Ft.: 150 Galvano Price/KG: 80 Steel value/Sq. Ft.: 320 Higher premium on convenience & comfort
Steel based solutions for Construction cost/ sq.ft.: Doors Price/kg: Nest-In Solution Value/ Sq. Ft. Society 1500-2000 700 2000-2500
S&S: Services & Solutions 38 1 Strategic Roadmap 2030
2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG Mr. Sanjiv Paul
6 Technology and Innovation-led Transformation Vice President Safety, Health & Sustainability 7 Q&A Session – II
39 Sustainability at Tata Steel The Tata Ethos
In a free enterprise, the community is not just another stakeholder in the business but in fact the very purpose of its existence
We do not claim to be more unselfish, more generous or more philanthropic than other people. But we think we started on sound and straightforward J. N. Tata business principles, considering the interests of the shareholders our own, and Founder of the Tata Group the health and welfare of the employees, the sure foundation of our success. Nagpur, 1895
40 Our sustainability framework provides guidance for developing and deploying sustainability initiatives across our value chain
Our sustainability framework Our approach
We aspire to be the global steel industry benchmark for Sustainability Policy
Value Creation and Corporate Citizenship Vision
Material Issues
Environment Social Governance Environment Health, Safety and Community Governance Employee welfare
Tata Code of Conduct Strategy Development Sustainability Pillars Sustainability Strategic Objectives & Strategic Enablers
Leadership in sustainability Environment, Health & Safety, HR, Responsible SC, Climate Change, Social Accountability, ABAC, AML, Data Policies Biodiversity, CSR, Affirmative Privacy, Remuneration, Strategy Deployment Energy Action, POSH Whistle Blower Annual Business Plan and Long-Term Plan
CSR: Corporate Social Responsibility, HR: Human Resource, POSH: Prevention of sexual harassment, SC: Supply Chain, ABAC: Anti-Bribery and Anti-Corruption , AML: Anti- 41 Money Laundering; Material issues were identified based on a third-party study in 2018 Our carbon footprint is best in class in the geographies we operate in, and our long term decarbonization roadmap is aligned with national commitments
Key Enablers Performance Over the Years Way Forward
TSI Emission Intensity (tCO2/tcs) TSE Adoption of BAT
3.12 Maximizing scrap use 1.96 1.99 TSI: Achieve <1.8 1.82 tCO /tcs carbon Raw material quality 2.50 2 2.30 1.88 1.86 emission by 2030 improvement 2.48 2.52
Greening of power mix FY05 FY10 FY16 FY19 FY21 FY09 FY10 FY16 FY19 FY21 TSE: Strive for 30% reduction in specific Worldsteel benchmark*: 1.87 tCO2/tcs (Average of top 15% performers) Scrap based growth emissions by 2030 (EAF) in India over 2020 and
Climate Climate Change ▪ IJmuiden Steel Works is amongst top 15% companies globally at carbon neutrality of 1.76 tCO /tcs (FY20). Collaborations with 2 steel making by 2050 technology providers, ▪ Jamshedpur Steel Works is Indian benchmark at 2.29 tCO2/tcs startups and academia (FY21).
▪ Our NatSteel plant at Singapore is one of the more energy
efficient EAF’s in the world at 0.5 tCO2/tcs
BAT: Best Available Technology, NDC: Nationally Determined Contribution, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL), TSE: Tata Steel Europe, EAF: Electric 42 Arc Furnace, *Based on the Worldsteel CO2 data report 2020 for BF BOF route Water is a material issue for Tata Steel India, and we have reduced our specific water consumption by more than 50% in last 15 years
Key Enablers Performance Over the Years Way Forward
Focus on 4-R Reduction in 66% 46% 52% at Tata Fresh Water at TSJ at TSK principles (Reduce, Steel India since 2005 since 2017 Achieve specific Reuse, Recycle, consumption since 2005 freshwater Recovery) to consumption of 1.5 minimize Jamshedpur Steel Works freshwater intake @10 MTPA is m3/tcs by 2030 dependency on less than that @5 MTPA fresh water
Water Sp. Fresh Water Consumption (m3/tcs) Rainwater Progress towards harvesting as 6.66 water neutrality additional source of 5.58 fresh water 4.39 3.67 3.2 TSI
FY05 FY10 FY16 FY19 FY21 Worldsteel range for best practice: 1.6 to 3.3 m3/tcs
TSJ: Tata Steel Jamshedpur, TSK: Tata Steel Kalinganagar, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL) 43 We have made significant improvement in air quality in the geographies we operate in
Key Enablers Performance Over the Years Way Forward
Reduction in 75% 62% 58% at Tata Specific Stack at TSJ at TSK Steel India Continuous upgradation since 2005 since 2017 Dust Emission since 2005 of APC equipment across all sites Strive for benchmark status in Adoption of BAT to Specific Stack Dust Emissions (kg/tcs) achieve best in class TSI TSE specific stack dust emissions by 2030 performance 1.16 0.40 0.40 Real-time monitoring of emissions enabling 0.86 DustEmissions better operating regime 0.50 0.26 0.53 0.49 0.26
FY05 FY10 FY16 FY19 FY21 CY15 CY16 CY19 CY20
BAT: Best Available Technology, APC: Air Pollution Control, TSE: Tata Steel Europe, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL) 44 Adoption of circular economy principles for efficient use of resources
Key Enablers Performance Over the Years Way Forward
Use of by products in TSI Material Efficiency (%) value added applications ~7% ~9% ~10% FY17 100% steel making slag
FY18 Achieve 99 %
100 100 100 100
99
98
97
95 94
utilization across sites 93
91 91 88 FY19 material efficiency (India) through introduction FY20 by 2025 of new brands FY21 Scale up scrap- Tata Aggreto TSJ TSK TSBSL based Steel Recycling Business Tata Nirman in India TSE Material Efficiency (%) FY17 Increase EBITDA of Setting up of SRB to our By-product
Circular Economy Circular FY18
99.8
99.6 99.7 99.7
99.6 99.5 99.4 harness future recycling 99.5 FY19 business in India by opportunities in India: 1st FY20 more than 2 times plant setup in Rohtak (FY21) by 2030
Strip MLE Strip UK
SRB: Steel Recycling Business, TSJ: Tata Steel Jamshedpur, TSK: Tata Steel Kalinganagar,` TSE: Tata Steel Europe, MLE: Mainland Europe, UK: United Kingdom, 45 EBITDA: Earnings before Interest, Taxes, Depreciation and Amortization Conservation and restoration of biodiversity is integral to our raw material operations
Key Enablers Key Results Way Forward
▪ One of the first companies in India to have a Biodiversity Policy
Collaboration with IUCN ▪ All our Raw Material locations have Biodiversity Management Plan for developing Biodiversity which is integrated with the Annual Business Plan Policy (2016) and ▪ Key Biodiversity restoration projects: Develop BMPs for all development of BMPs operating sites ▪ Jugsalai Eco Park (25 Ha) Land-Use Transformation from Focus on Biodiversity Muck to Eco-Park conservation & restoration projects ▪ Sir Dorabji Tata Biodiversity Park (100 Ha) created on Aspire to achieve no mined out area at West Bokaro net loss of biodiversity
Biodiversity Thrust on use of native species for restoration ▪ Ecological Park (12 Ha) developed on MSW dumpsite at plans Jamshedpur
▪ Rejuvenated CRM Bara Pond (5.6 Ha) at Jamshedpur
▪ Facilitating nesting and breeding of Common Terns in Wales, UK (nationally acclaimed conservation project)
IUCN: International Union for Conservation of Nature, BMP: Biodiversity Management Plan, Ha: Hectare, CRM: Cold Rolling Mill, MSW: Municipal Solid Waste 46 Committed to reduction of environmental footprint of our products using Life Cycle Approach
Key Enablers Key Results Way Forward
TSI ▪ Developed GreenPro framework for steel rebars in Collaboration with CII GBC (1st time in India)
Disclose environment Increase in coverage of ▪ 1st GreenPro certified rebar brand in India operating sites and performance of 100% products under LCA of products ▪ HabiNest (Light gauge steel frame construction Product disclosure through solutions) LCA comparison with conventional Use LCA approach to EPDs & Ecolabels structure (Critically reviewed by 3rd party) differentiate our products & brands (GreenPro in India) o 53% reduction in CO2 emissions All NPD decisions based o 40% reduction in water consumption Influence consumer on the sustainability behavior by creating TSE assessment score in TSE awareness on ecofriendly products Product Sustainability Product ▪ One of the oldest EPD programs (~15 years) ▪ Only company in steel sector to operate a third party verified EPD program aligned with EN 15804 ▪ Developed 50 EPDs for its site & downstream products ▪ Recognized by WorldSteel Steelie Award for excellence in LCA category
LCA: Life Cycle Assessment, EPD: Environmental Product Declarations, NPD: New Product Development, TSE: Tata Steel Europe, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL), VAVE: Value Analysis and Value Engineering, CII GBC: CII Green Business Centre, EN 15804: EPD standard for the sustainability of construction works 47 and services Committed to building a sustainable & resilient supply chain by proactively engaging with our supply chain partners
Key Enablers Key Highlights Way Forward
TSI: ▪ >200 critical suppliers assessed on RSCP in FY21. Another 400 Release of Responsible to be covered in FY22 (covering 58% of total procurement spend) Cover 100% critical Supply Chain Policy supply chain partners (RSCP) to formalize our ▪ Tata Steel became member of for ESG risk expectations on ResponsibleSteel in 2020 assessment as per sustainability with our RSCP principles supply chain partners ▪ All products at UK and NL certified to BES 6001 Get site certification rd Initiation of 3 party for all operating sites assessment of ESG risks ▪ 98% of 1029 suppliers adhere to Responsible Procurement Policy under of critical supply chain at TSE ResponsibleSteel by partners 2025
TSE: Integrate ESG Adhere to BES 6001 Principle 1 Fair Business Practices performance of supply Zero Carbon Logistics chain partners in
Responsible Supply Responsible Supply Chain Principle 2 Health & Safety Program procurement decision 4 Principles of making Principle 3 Human Rights IRBC programme partner Responsible Supply Chain Principle 4 Environmental Protection Policy
RSCP: Responsible Supply Chain Policy, BES 6001: Responsible Sourcing of Construction Products, ESG: Environment, Social and Governance, UK: United Kingdom, 48 NL: The Netherlands, IRBC: International Responsible Business Conduct, TSE: Tata Steel Europe, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL) Zero harm is highest priority for Tata Steel Group
Key Enablers Performance Over the Years Way Forward
TSI LTIFR TSE LTIFR 79% 44% Achieve Zero Harm 3 Reduction 2.84 Reduction Build (safety) Through leadership capability 1.53 1.45 1.71 1.59 1.15 Reinforce positive 0.56 0.57 0.64 0.23 0.43 safety culture and Risk based approach behavior for hazard FY06 FY10 FY16 FY19 FY20 FY21 FY06 FY10 FY16 FY19 FY20 FY21 identification and risk Enhance capability mitigation Safety highlights: ▪ Eliminated fatality on roads with infrastructure development, zero cyclist policy through technology and digital interventions inside steel works. enablement CSM & behavioural ▪ Sustained Zero for last 8 years in 4 fatality potential hazards under Confined Multi skill vendor safety programs space, Fire, Gas exposure & Drowning at TSI
& & Safety employees ▪ 96% reduction in Tier-1 (Red Risk) process safety incidents at TSI through Excellence in Process deployment of HSE Risk Management system & Centre of Excellence (CoE) Reduce ergonomic Safety Management concept since FY19 risk factors by ergo OccupationalHealth ▪ Capability building through state of art training facility (SLDC), simplification of risk assessment & Establish industrial safety standards and e-learning modules implementing control hygiene and improve Occupational Health: measures. occupational health ▪ 21 basis points improvement in TSI Health Index since FY19 ▪ Health Champion Programme at TSE
COVID Measures: ▪ Deployed 4000+ PODs1 across TSI to tackle Covid-19 Pandemic
LTIFR: Lost Time Injury Frequency Rate per million-man hours worked, SLDC: Safety Leadership Development Center, CSM: Contractor Safety Management 49 TSE: Tata Steel Europe, TSI: Tata Steel India (TSL Standalone + TSBSL + TSLPL), HSE: Health, Safety & Environment 1. A ‘POD' is a self-sufficient group, comprising both own employees and contractors, with self-contained skill-sets to perform the intended jobs Fostering a culture of people care
Key Enablers Key Highlights Way Forward
Deliver best in class Employee Engagement Scores Women in Workforce (%) experience and build a 10.6 11.1 11.1 11.2 11 TSL 78 7.4 (Stand unique employer 5.8 6.1 6.5 6.9 76 alone) TSE brand 74 Sustain Best Workplace in 72 FY17 FY18 FY19 FY20 FY21 Drive Agility thru Manufacturing Sector Women recruitment trend* Behavior & Work in India 22% 26% practice changes 16% 18% 19% TSL FY18 FY20 (Stand Sustain benchmark TSL (Standalone) alone) Manufacturing Benchmark status in employee Focus on Diversity & FY17 FY18 FY19 FY20 FY21 engagement Inclusion Diversity & Inclusion ▪ Launch of MOSAIC – the organization wide Diversity Resource group Improve diversity in Flexible working ▪ 17.2% Affirmative Action community in workforce workforce : target of People People Care 25% gender diversity methods ▪ Deployment of women in mining and manufacturing - change in law in Manufacturing & ▪ LGBTQ+ Employee Resource Group WINGS Focus on Health & Mining locations well being ▪ Equal Opportunity Policy, focus on Persons with Disability
Agility With Care – POD working, Proactive testing and vaccination, Digital tracks Upskill & democratize for contact tracing and Health monitoring, Agile working policy to facilitate remote Learning working. Benchmark COVID Social Security Schemes
Learning & Development – Skill certification of 100% of contract workforce (75000+), launched award winning E-learning venture Digi-e-shala, Learning & development investment of Rs. 151 crores in FY21 * Managerial Workforce (Officers) 50 Working with communities to address their most pressing development challenges
Key Enablers Performance over the years Way Forward
1.6 Million lives reached CSR spend consistently through CSR initiatives (FY21) beyond statutory mandate Large scale, replicable CSR actual spend (Rs.Cr.) change models 1.6 Statutory CSR mandate (Rs.Cr.) Facilitate 1.4 %age – actual % spend of past 3 years avg. net profit addressing core (7.64%) (2.70%) transformative, 1.1 1.1 315 development gaps 1.0 (5.40%) 34.5* efficient and lasting (3.34%) (2.22%) 232 222 194 193 solutions to the Cocreation of development strategies, outcomes 174 190 challenges of 10 and institutions with 116 86 82 million people per and for those who are FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 year by 2030 left behind Foster an active Allocation of best talent ▪ Education: 1,200+ habitations made child labour free, while working on community of learning and governance of 3,300+ government schools in remote Jharkhand and resources for changemakers societal outcomes and Odisha. Establish Tata Steel Collaborations which ▪ Maternal And Newborn Survival Initiative (MANSI), worked with ASHA cadres to reduce CMR by 28% in 3 years in 12 blocks of Jharkhand and Odisha. Foundation as deepen SDG 2030 ‘partner of choice’ for agenda amongst ▪ Samvaad, curates dialogue on indigenous identity which has reached 157 deep societal impact Corporate Social Social Responsibility Corporate communities tribes from 25 Indian states and representatives from 15 countries. in Eastern India ▪ Livelihoods programmes have enhanced annual incomes of 35,000+ households by Rs 65,000 on average.
ASHA: Accredited Social Health Activist; CMR: Child Mortality Rate; FY19 CSR spend includes one-time upgradation of the Meherbai Tata Memorial Hospital, Jamshedpur 51 cancer centre; In FY21, further to Rs 222 crores overall CSR spend, an additional Rs 34.5 crores was spent on Covid facilities benefiting communities but not counted as CSR spend – 2.70% is with Rs 222 crores and Rs 34.5 crores combined Standing with the nation during COVID-19 pandemic
16.5 lakh 15,000+ Lives Reached out Hours of Volunteering (Figures updated till May 2021)
Medical Support (COVID care facilities)* › 1,187 beds at Jamshedpur Liquid Medical Oxygen › 150 beds at Kalinganagar › 61,000 tonnes Liquid Medical Oxygen › 500 beds at Jajpur supplied › 230 beds at Angul › 639 beds across our operational areas in Jharia, West Bokaro, Noamundi, Joda and Gopalpur
Supporting the community
#ThoughtforFood: #StitchinTime: #CashforWork: #DigitalBridges: #LockdownLearning: #ApnokiSuno:
27 lakh meals 1.01 lakh cloth masks Short term income of Rs 94,349 migrant 1.36 lakh children in Collaborative provided to Covid+ made by 194 women 950 enabled for 2,860 workers across 24 remote Jharkhand and ecosystem to and economically headed households and distressed households, states reached with Odisha continued their overcome vaccination distressed distributed to frontline including online vegetable aid and counselling. learning journeys through and early diagnosis households. health workers. retail system for marginal a bridgital model. hesitation in rural farmers. communities.
52 * Peak capacity during the pandemic & includes owned & managed, supported as well as subsidiary hospitals Governance: Demonstrating ‘Leadership with Trust’
CSR & Nomination and Audit Sustainability Remuneration Board 50% 10% ~100% Independent Woman Attendance Board Committees Risk Safety, Health Stakeholders’ Directors Directors Oversight Management and Environment Relationship
▪ ABAC ▪ Climate Change ▪ Environmental ▪ Remuneration ▪ Whistle Blower ▪ Affirmative Action ▪ CSR ▪ Health & Safety ▪ Responsible Supply Policies ▪ AML ▪ Data Privacy ▪ Human Resource Chain ▪ Biodiversity ▪ Energy ▪ POSH ▪ Social Accountability (ESG)
Leadership Compliance ▪ Guided by the Tata Code of Conduct (TCoC) Engagement Structure ▪ Compliance to all regulatory laws and corporate governance guidelines Pillars of MBE framework Driven by ▪ Deployed MBE framework that reflects our commitment to shared values and Ethical principles. Communication Measurement and Training of Effectiveness Conduct
One of the first First company in companies in India to Disclosing since India to publish Disclosing adopt GRI framework 2006: Climate Change Transparent Integrated Report since 2012 for Sustainability 2014: Water in in FY2015-16 Disclosures reporting in 2000
CSR: Corporate Social Responsibility, POSH: Prevention Of Sexual Harassment, ABAC: Anti-Bribery and Anti-Corruption , AML: Anti-Money Laundering, MBE: Management 53 of Business Ethics Our efforts are recognised globally and nationally
TSL and TSE recognised as Safety & Health Excellence Recognised as the ‘Sustainability Recognition 2020 for world's most ethical Champions’ by Digitalisation of Process companies for the th worldsteel (4th Safety Performance 10 time by time in a row) Indicators (PSPI) Ethisphere Institute
Rated ‘A-’ 3 Assets recognized (Leadership band) Certified as the as Global Lighthouses for our Climate Best Workplace in by WEF (Jamshedpur, Change and Supply Manufacturing 2021 Kalinganagar and Chain disclosure IJmuiden)
Rated amongst Dun & Bradstreet Recipient of Prime top 5 Steel Corporate Award Minister’s Trophy for Companies 2019 in the 11 times (out of 25) for globally. category of the Best Performing Corporate Social Integrated Steel Plant Responsibility
54 TSL: Tata Steel Limited, TSE: Tata Steel Europe 1 Strategic Roadmap 2030
2 Financial Strategy
3 Q&A Session – I
------Break (4:00pm-4:15pm IST) ------
4 Market Leadership and Future-fit Strategy
5 Our Approach to ESG Dr. Debashish Bhattacharjee
6 Technology and Innovation-led Transformation Vice President Technology & New 7 Q&A Session – II Material Business
55 Architecture for discussion
Invest in technology Research and development technology is deep rooted in Tata Steel’s legacy 6 1
Leverage the broader The progress continues culminating in Intellectual ecosystem through open 5 2 innovation involving start-ups, Property, recognition and academia, Government and commercialization industry
4 3
Explore and grow The current ambition is materials beyond steel to take global as business leadership in key opportunities technology areas
56 Technology has always been at the heart of Tata Steel
Developed steel grades for light armour vehicles Supplied steel for Howrah bridge (1943) during second world war (1940)
Tata Steel documented its first patent in 1938 – a Tata Steel was the first in Asian steel sector to set first for the Indian steel industry up a corporate R&D centre
Inaugurated in 1937 Today
57 Progressing towards a ‘knowledge-intensive’ organization
119 114 115
109 • 32% of patents are in 79 79 the domain of raw 70 70 59 60 materials while 25% 54 54 58 74 are in the area of products. 55 56 47 49 44 • No. of patents filed with 35 37 37 33 35 collaborators – 10% of total patents filed FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
Patent Applications Filed Patents Granted
Over 100 New filings every year for last Cumulative patents filed till FY21 – Cumulative patents granted till FY21 – three years in line with organization’s thrust towards innovation and 1319 707 technology development.
*Numbers are for Tata Steel India 58 Consistently being recognized in the space of innovation
2020 | 2019 | 2018 2020
CII Industrial Intellectual Innovista Property Award - most number of awards for the Best Patents Portfolio in the Large every year for last 3 years Enterprises (manufacturing/engineering) category
2019 2015
CII Industrial Thomson Innovation Award Reuters Innovation Award - among the top 25 innovative companies
59 Unlocking and monetizing knowledge and intellectual property
Utilizing waste Iron Dhurvi Gold powder for value - use of steelmaking added use in cutting slag as a soil tools, food fortification Incubating conditioner and metal injection Intellectual moulding Property
Monetizing Internal Expertise and Knowledge
60 Technology leadership areas (TLAs) – 7 identified
Use of low-quality Iron ore, coal, Technologies for generation ferro alloy minerals with focus on (i) /usage of large scale & Technologies for Water Use of AI to drive process Mining (ii) Beneficiation & economical green/blue H2 in neutrality through Reduce, excellence and ‘first time right’ processing (iii) Recovery & recycling steel value chain Reuse & Recycle in steel value chain Utilizing Low Quality Hydrogen Water Digital Raw Materials
Carbon Capture and Mobility Coatings Utilization
Technologies for CO2 Material leadership through Breakthrough coating capture, storage and breakthrough technologies in solutions serving latent needs utilization mobility domain / existing needs better than competition / cost saving for OEMs 61 Utilizing low quality raw materials – early steps in the domain of ‘energy materials’ while working on traditional issues
Exploring Chromite overburden to extract Nickel and Cobalt for use as a Manganese group of mines cathode material in Li-ion battery
Nickel Mixed Hydroxide Sulphate Product
Cobalt Oxide Cobalt Sulphate
A polymer based fluidity enhancer that helps substitute MnSO MnO hard coking coal for coke making. 10% of hard coking 4 2 coal replaced by non-coking coal. Annual savings of around Rs.150-200 crores Utilizing low and subgrade Manganese ore to produce Manganese compound for use as a cathode material in Li-ion battery
62 CO2 capture & utilization and generation of Hydrogen rich gas
Carbon 5 ton per day CO2 capture plant Capture commissioned at Tata Steel and Jamshedpur – a ‘first in India’. Captured
Utilization CO2 utilised in the steel melting shop.
Tata Steel in collaboration with a start- up company has developed a Hydrogen technology to produce Syngas
(H2:CO=4:1) from biomass
63 Mobility – providing advanced technical support and solutions to customers
Services to a Japanese car manufacturer: Localized the tear down activities. 1st in India by an steel company.
VAVE/EVI - 1st in India Participating in by any steel company. Hyperloop. Developing More than 75 models steel components covered. Now on virtual platform
VAVE: Value Analysis Value Engineering; EVI – Early Vendor Involvement 64 World leading solutions for clean water and coatings
Water Coatings
A patented technology which uses Ultraviolet ‘First in the World’ Ready-To-Paint (RTP) rays to permanently oxidize cyanide present coating developed for cold rolled and in industrial waste water into carbonate and galvanised steel. It will help eliminate the molecular Nitrogen pre-treatment process at the customer end.
65 New materials play to capitalize on future opportunities
Drivers
▪ Emerging trends in the area of light weighting and environmental sustainability ▪ Emergence of multi-material play – meet future needs of existing segments while adding new ones ▪ Counter cyclicality of steel business
Composite Medical Materials
Graphene
66 Composites business – aiming for leadership in industry, infrastructure, railways and automotive applications
Value Light weight Corrosion resistance Flexibility in forming proposition enabling fuel efficiency enabling longer life lowering manufacturing capex
Tata Steel in collaboration with a Spanish lab is Composites business set quite a few milestones along the way trying to develop carbon ▪ leveraging group synergy to deliver a 500-bed hospital project in Kerala fibre from coal tar. ▪ establishing itself as an integrated solutions provider to Indian railways and, ▪ Commissioning India’s first FRP foot-over bridge in Jamshedpur
67 Graphene business – one of the largest production plant in the world Medical materials – initiating with bone and skin replacement materials
Graphene business ▪ 50 patents across 10 countries ▪ Patent protected manufacturing technology ▪ Graphene doped and coated products commercialized in three sectors: (a) material handling, (b) conveyance and, (c) coatings
100 ton per annum integrated Graphene manufacturing plant – one of the largest single unit Graphene production centre in the world.
Representative Representative Medical materials image image
Collagen Hydroxyapatite non-cow & non-pig source
68 Leveraging internal and external ecosystem
Internal ecosystem
Revenue expenditure Planned expenditure for next 5 years 115 279 68 (Rs. Crores) (Rs. Crores) M.TECH PHD FY21 EMPLOYEES 220 Capital 1,200 FY22 Plan 275 Revenue 1,500
External ecosystem
Tata Steel Chair Professor Umbrella Memorandum of Tata Steel Advanced Materials • University of Cambridge Understanding (MoU) Research Centre • Indian Institute of Engineering with Council of Scientific & Industrial At IIT Madras – co-location with Science and Technology, Shibpur Research (CSIR) academic institutions, engagement with • Indian Institute of Technology, to collaborate in specific areas various CSIR labs, IITs and other Kharagpur leading research institutes
*Number of employees mentioned corresponds to the workforce of Tata Steel India R&D; Spend mentioned is that for Tata Steel India R&D in INR Crores 69 *Revenue expenditure includes Tata Steel India R&D employee cost, general and administrative expenses, project funding and cost related to patent filing and maintenance External ecosystem – plugging in the start-up community
Start-ups scouted + Across 9+ geographic areas 300
Practise areas identified Ecosystem partners Spanning across the area of collaborated with Sustainability, Operational + Including 11+ incubators, 5+ 7 CREATING A 24 venture capitalists, 3+ corporate Efficiency, Energy and, START-UP Advanced Materials & Products accelerators and, 2+ corporate ECOSYSTEM partners
Proof of Concepts conducted
Devic Earth - CarbiCrete- 17 Fugitive emission Carbonation of control technology steelmaking slag
70 Summary
Building on a strong technology legacy
And shaping the future through research, technology and knowledge
71 Investor relations contact
Institutional investor enquiries : Sandep Agrawal Email: [email protected]
72