Mumbai 27th May‘2016

Investors Meet

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Contents

At a Glance

Sponge Iron Making Process

Awards & Accolades

Ownership and Governance

Operating Results

Profitability Statement

Income, NR & Margin

Cost and Revenue Distribution

Balance Sheet

Financial Performance Analysis

TATA sponge along with Market

performance

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TATA Sponge Iron Limited - Location

Tata Sponge is located at Bilaipada in Keonjhar District of Odisha

4

TATA Sponge Iron Limited at a glance

The share price at the close of FY’15 and FY’16 were Rs.725 and Rs.469 respectively.

The market capitalisation decreased by 35 % in FY’16 (from 111.68 billion INR to 72.23 billion INR).

NR of Sponge iron decreased by 32% (from Rs.19,793/t to Rs.13,435/t) where as Raw material price

decreased by 31% (from Rs.15,847/t of Sponge iron to Rs.10,898/t of Sponge iron) in FY’16.

The key financial results for the year FY’16 are:

• EBIDTA Rs.22.34 cr. (PY 99.23 cr.)

• PBT Rs.41.73 cr. (PY 136.47 cr.)

• PAT Rs.30.83 cr. (PY 91.89 cr.)

Sponge iron

Capacity : 0.39 MTPA Production :0.36MTPA

Power

Capacity: 26 MW Generation :163 MU

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Process of making sponge iron

Iron ore (Haematite) and non-coking coal are prime raw materials for DRI production.

They are fed into a rotary kiln along with the desulphersing agent- dolomite.

At 950-1050º C the solid state reduction of iron ore takes place in a controlled

combustion where coal is converted into carbon monoxide to remove oxygen from iron

ore.

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Important Awards & Accolades

Kalinga Safety award 2016 CII Quality award 2016

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Ownership and Board of Directors structure

54.50

29.55

10.14 4.56

1.25

Shareholding pattern as on 31st March’16

Promoter Group Individual Shareholders

Foreign Institutional Bodies Corporate

Others

Mr. A.M. Misra Chairman(Non-Independent)

(Non Executive Director)

Independent Directors Non Independent Directors

Mr. D.K. Banerjee

Mr. P.C. Parakh

Dr. O.N. Mohanty

Mr. Manoj T. Thomas

Mr. Krishnava S Dutt

Mr. R. Ranganath *

Mrs. Meena Lall *

Mr. D.P. Deshpande , (Managing

Director)

Mr. S.K. Pattnaik, (Executive

Director)

* Non Executive Director

Ownership structure Board of Directors

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5 Years operating results

134.4

178.87 195.71

173.02

162.93

88.31

123.81 140.91

121.43 113.59

2011-12 2012-13 2013-14 2014-15 2015-16

Generation Export

274

360 375 363 366

272

361 376 365 360

2011-12 2012-13 2013-14 2014-15 2015-16

Despatch Production

Power (MKWH) Sponge Iron (000’MT)

Power generation in FY’16 is lower due to Kiln-1 modification.

Production in FY’16 is lower than the PY due to Kiln-1 modification (excludes conversion of 16,965 MT and trading of 5,014 MT).

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Profitability Statement

Performance Elements FY’16 PY FY’15

Sale of Sponge Iron 524 719

Sale of power 48 47

Other operating income 1 24

Other income 38 55

Total income 611 845

Cost of materials consumed 406 579

Purchase of traded sponge iron 8 -

Changes in inventory of finished goods 13 (5)

Employee benefits 36 35

Finance costs 5 5

Depreciation 13 13

Other expenses 88 82

Total expenditure 569 709

Profit Before Tax 42 136

Expenses on Taxes 11 44

Profit After Tax 31 92

EPS (Rs/per share) 20.02 59.67

Rs Crore

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Income, NR & Margin

20,858 21,761

14,790

19,137 19,793

13,435

6,012 5,573 3,554

17,669

15,526

12,851 13,998

16,549 14,276

11,614 12,245

5,294 3,014 2,329

5,124

FY'14 FY'15 FY'16 Q1'16 Q2'16 Q3'16 Q4'16

Income NR oper. Margin Income FY16 NR FY16 Oper. Margin

Rs./T of DRI

Income includes sale of Sponge Iron, Power and rejects, net off taxes and sales commission . Excludes conversion income & expenditure.

NR Rs./T of DRI includes only sale of SI.

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Financial performance analysis

17.82 15.10

18.58

12.57

3.9

17.06

15.22

18.32 16.15

6.83

11.52 10.33

12.37

10.87

5.04

FY'12 FY'13 FY'14 FY'15 FY'16

EBIDTA margin PBT margin PAT margin

In %

Margin

49.14

55.47

65.69

59.67

20.02

80 80

100 100 100

6.15 5.38 7.72

12.15

23.43

March'12 March'13 March'14 March'15 March'16

EPS (Rs.) Dividend (%) PE Ratio (%)

EPS, Dividend (%) and P/E ratio

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Revenue distribution in FY’ 16

68%

2%

2%

6%

4%

7%

1%

3% 2% 5%

Raw Material

Selling

Change in stock

Salary

Repairs

Other expenses

Conversion loss

Interest & Dep.

Tax

Profit

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Balance Sheet Rs Crore

Particulars As at 31st March’2016 As at 31st March’2015

Liabilities

Net worth 807 795

Deferred tax liabilities (net) 22 23

Long-term provisions 7 5

Current Liabilities 151 150

Total Liabilities 987 973

Assets

Net Fixed assets 173 168

Non-current investment & Long

term loans and advances 205 198

Inventories 32 108

Current investments 284 206

Cash and bank balances 252 252

Other current assets 41 41

Total Assets 987 973

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TATA sponge w.r.t Market performance

302.00 298.30 507.25 725.20 469.05

5820 6212

7122

10616 10619

4651 4594

7812

11168

7223

March'12 March'13 March'14 March'15 March'16

Market price (Rs.) S&P BSE Mid Cap indices Market capitalistaion (Rs. Million)

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THANKS