Singapore Investor Conference

7/30/2019 Singapore Investor Conference

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Diversif ied New Port folio. On the growth Highway

June 2007


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Table of contents

The Tat a Group - overv iew

Tat a Chem ical s - Business overview

Chemicals, incl uding overvi ew of Brunner Mond

Fert i l isers

The Road Ahead The Fut ure Tat a Chem ical s

Financial overview


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An overview of the Tata Group


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The Tata Group (Founded 1868)

Market cap: US$51.4bn1 Revenues: US$22bn2 PAT: US$2 billion2

India s largest and most respected business group

8%

8%

24%

24%

5%

9%22%

Metals

Composites

Hotels

Financial Services

International Trade

Beverages

Watches Retailing

Automobiles

Engg. Products

Engg.Services

Basic Chemicals

Fertilizer

Pesticides

Power

Fuel & Feedstock

ServicesServices

MaterialsMaterialsEnergyEnergy

ChemicalsChemicals

EngineeringEngineering

Consumer ProductsConsumer Products

Software Telecom Services

Automation &Control Systems

IT & CommunicationsIT & Communications

Notes: 1 Market cap (approx.) as on March 31, 2006 2 F.Y. 2006 data


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The Tata Group

96 companiesOperat ions in 40 count r ies

across all six cont inent s

Markets across 140 nat ions Revenues equivalent t o 3%of India s GDP

Over 246,000 employeesSt rong presence in al l

maj or business sect ors


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Tata Chemicals

Business Overview


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3rd largest soda ash

manufact urer in t he wor ld

#1 soda ash

player in India

Market leader in

edible salt market

Most energy ef f icient urea

manufact urer in India

1/ 3rd st ake in IMACID,

Morocco (one of t he largest

Phosphor ic acid manufact urers)

Presence in al l t hree

Agr i input cat egor ies

Tata Chemicals today is the>>Tata Chemicals today is the>>

Mit hapur Salt panMit hapur Salt pan


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Global Presence

MoroccoMorocco

UKUK

IndiaIndia

KenyaKenya

Net her landsNet her lands

Facilities

Markets

Sout h Af r icaSout h Af r ica


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Listing: Stock Exchange, Mumbai (BSE) andNational Stock Exchange (NSE)

Ticker: TTCH IN

Founded: 1939

Market Capit alizat ion US$ 1363 mn

Revenue3 (US$mm): 1337 (Chem icals 725, Fert i l i sers 612)

EBITDA3 (US$mm): 232

EBITDA Margin3: 17.3%

Employees: 3,500

Ownership: Sponsor Group 31.6 %Inst i t ut ional Invest ors 33. 8 %Indian Publ ic 34. 6 %

Note:

1: INR/USD Conversion rate of 43.47 as on 31 st March 2007 for all fi nancial data

2: INR/USD Conversion rate for Market capitalisat ion i s 40.40 as on 29th May 2007

At a Glance


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Fertilisers

46%

Chemicals

54%

Revenue Split


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Sodium CarbonateSoda Ash s most important use is in

the chemical make-up of glass.

When heated at high t emperatures,

combined with sand and calcium

carbonate and cooled very rapidly,

sodium carbonate can be used to

form the tr ansparent non-crystall ine

material, commonly known as glass.

Glass is used in the construction

indust ry as wel l as in mobile phones,

consumer electronics and beverages.

Soda ash is also used to make

detergents.


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Int ernat ional Market s Indian Market s

Soda ash indust ry perspect ive

Source: British Sulphur Consultants

Global demand at 37 mi l l ion MT,

China - 21% of demand;t o grow at 4% pa led by glass

Synt het ic product ion

dominat es 73%

Increasing natural gas, coal,

coke pr ices & f reight rat es

Sel l ing pr ices increasing af t er

seven years of weak pr ices

Domest ic demand 2.2

mi l l ion MT growing at 4-5%

Demand dr iven pr imar i ly

by t he f loat glass segment

Synt het ic soda ash accounts

for 100% of domest ic product ion

Capaci t y ut i li sat ion

levels at all -t ime high


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Soda ash India - Mithapur

Soda ash m anufact ur i ng Faci l i t y at Mit hapur, Guj arat

Exist ing Capacit y of 875,000 t pa

Produces equal volumes of light and dense soda ash Plant is in t he process of being m orderni sed

Plant also produces 500, 000 t pa of Cem ent and 50,000 t pa of Sodium

Bicarbonate


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Soda ash Price Chart

Ten Year Price perspective

Soda Ash Dense

6,000

7,000

8,000

9,000

10,000

11,000

12,000

1999

2000

2001

2002

2003

2004

2005

2006


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15Brunner Mond Plant, Winnington, England

Overview of the Brunner Mond Group

The Brunner Mond Group

is a whol ly owned subsidiary

of Tata Chemicals acquired in

December 2005 f or Rs. 801 crore.

BMGL works with 1500 customers

and is Europe s second largest

producer of soda ash with plants in

England, Holland and Kenya. This

acquisition made Tata Chemicals

the worlds third largest soda ash

manufacturer with facilitiesspanning three continents.


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Europe 1.3mn t onsEurope 1.3mn tons Af r ica 0.715mn t onsAf r ica 0.715mn t ons

UK Netherlands

Magadi, Kenya

Terminal at

South Africa

Soda ash capacity

2.0 mn tons

Soda ash capacity

2.0 mn tons

Facilit ies within reach of maj or markets >>

Facilities and transportation terminal strategically located to give

access to major market s in Europe, Middle East , and South East Asia


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Lake Magadi has one of the largest soda ash reserves ofthe East Afr ican Rift Valley Lakes Close to key growth markets like Middle East and Asia

The capacity is being doubled to ~700,000 tpa

Durat ion - Lease valid for 30 years up to 2053

Area 227,000 acres Close to 15% of Indias soda ash impor ts are f rom Magadi -

Acquisit ion st rengthens Tata Chemicals India presence

Magadi Soda Ash A perspective >>

Lake Magadi, Kenya


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The Benefits of Natural Soda Ash

Lake Magadi, Kenya

Magadi i s t he second l argest Nat ural Soda Ash pr oducer in t hewor ld

The soda ash is obt ained by w ashing and calcini ng Trona, (anat ural ly occurr ing form of sodium sesquicarbonat e), ext ract edf rom Lake Magadi

Cost of product ion of nat ural soda ash is about half t hat ofsynt het ic soda ash

Magadi has a sel f - replenishing proven t rona reserve wit h a l i f eof 100 years

The use of t rona m akes Magadi Soda Ash t he l ow est costsoda ash producer in t he w orl d


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MIDDLE EAST

& AFRICA

Oman

UAE

Kenya

Sout h Af r icaNigeria

Saudi Arabia

Morocco

ASIA

India

Bangladesh

Sri Lanka

IndonesiaThailand

Pakist an

Philippines

VietnamMalaysia

EUROPE

UK

Net her lands

Germany

FranceBelgium

Sweden

Ireland

Norway

Denmark

Tata ChemicalsTata ChemicalsSoda ash markets >>Soda ash markets >>


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Maj or Brands we work with >>


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Superbrand - Ranked # 1 f ood brand by Economic Times

High brand equi t y and premium percept ion

Tat a Salt - pioneer in branded salt market

Nat ionwide dist r ibut ion - over 40 mi l li on consumers

Integrat ed operat ions at Chemical si t e - Embedded compet i t ive advant age

Business wi t h social obj ect ive f i rst Iodized Salt (goit re), now Fort i f ied (ir on

deficiency)


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Leading pl ayer i n urea and phosphat ic f ert i l iser segm ent s

Two pl ant s at Babrala near Delhi and Haldia near Kolkat amanufacturing Urea and Phosphates respectively

The Babral a plant has capacit y of 864,000 t pa and is bei ngdebot t lenecked and expanded by 33%

The Hald ia plant has a f er t i l iser product ion capaci t y of 750, 000 t paand w as acquired f rom Hindust an Lever i n 2003

Dual f eedst ock Babrala faci l i t y - most ef f ic ient in India w i t h energyconsumpt ion levels of 5. 17 Gcal/ t on; RIL s gas f inds t o furt her reducecosts of energy

St rat egic st ake i n IMACID, Morocco ensures cont inuous avail abil i t y ofphosphor ic acid

Tata Chemicals Fert il iser business

India is the third largest producer and consumer of Fert il isers


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Market Share in Core Command areas

Urea: 16%

DAP: 47%

NPK: 59% Presence in high consumption north and east regions

especially Punjab, Haryana and the Ganget ic belt of Ut tarPradesh, Bihar, and Bengal

Considerable share of high value fer t i li sers of Zinc

YOY Revenue Growth of 15% for 9MFY07

Operat ing growth of 7% to 32 crore for the same period

Tata Chemicals Fertiliser business

Dominant Market Share in Core Command Area poised to take advantageof (inevitable) liberalisat ion of policy

Baroda

(Nikohead office)

INDIA

Baroda

(Nikohead office)

INDIA

Punjab Haryana

Uttar Pradesh

W. Bengal

Jharkhand

Bihar

Baroda

(Nikohead office)

INDIA

Baroda

(Nikohead office)

INDIA

Punjab Haryana

Uttar Pradesh

Jharkhand

Bihar


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Soil Testing

Crop Loans

Farm Machines

Out put Purchase

Insurance of

input invest m ent

Advi sory Ser vices

TATA KISANTATA KISAN

SANSARSANSAR

Tata Kisan Sansar - Offer ings


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Tata Kisan Sansar (TKS) - creat ing rural

entrepreneurship

Provide value add services (Soil Testing & Farm Management)

Create a new dist r ibut ion channel for agricult ural inputs

Improve supply chain efficiencies and provide farm-gatelinkages to the market NCDEX

Create market driven R&D solut ions

Retail ing of f resh agricultural produce t ie up with TOTALProduce, Europe s largest fresh produce Company


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IMACID Plant entrance (above)and Plant overview (r ight ).

Tata Chemicals bought 33%

stake in IMACID (Indo Maroc

Phosphore) in 2005 to

securi t ise inputs for complex

fert iliser manufacturing

at it s Haldia plant

The Moroccan

Footprint


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The Fresh Produce Business

Leveraging the TKS Network

Focusing on what mat ters the supply chain Partnering with TOTAL PRODUCE 100 years of expertise

Sequent ial roll-out Punj ab and West Bengal

In 2007-08 2 Dist r ibut ion Centres

In 3 years 20 Dist r ibut ion Centres

In 5 years 40 Dist r ibut ion Centres


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1. Proposed ent ry into both Bio Diesel and Bio Ethanol

2. Trial cult ivat ion of non-food agr icult ural feedstockcommenced in both cases

3. Dual approach conventional technology & advanced

new t echnologies (concurrent development )

4. Development of novel t echnologies is the

responsibil it y of the Innovat ion Centre (Pune)

The Bio-fuels Business


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1. Based in Pune

2. Focus on the Bio-Nano space

3. 20 scientists going to 150 in 2 years t ime & ~500 in thelonger-term

4. Current Focus Areas: Bio Diesel cleaner & simpler t rans - esteri f icat ion

Bio Ethanol Enzyamatic Cellulosic conversions

Nano Materials, Bio Materials & Advanced/SmartMaterials

5. 25-30% Research into Blue Sky areas

The Innovat ion Centre


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FINANCIALFINANCIAL

OVERVIEWOVERVIEW


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Financials Revenue growth

554

317

918795

670

115

419

0

300

600

900

1,200

1,500

FY03 FY04 FY05 FY06 FY07

inU

SD

million 910*

* Post consoli dat ion

Note: FY2006 Consolidated financials include BMGLs Q4 results and IMACIDs performance over 11 mont hs

1337*

CAGR43%

CAGR43

%


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Financials EBIDTA

115

131

158

86100

74

35

0

50

100

150

200

250


inUSD

million 166*

* Post consolidation

CAGR2

8%

CAGR2

8%232*



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Profit After Tax

1776

80102

4148

20

0

20

40

60

80

100

120

140


inUSD

million

97*

Post consolidation

BMGL st af f cost s are net of wr i t e back of USD 7 mil li on of pension liabil i t ies in an overseas subsidiar y,consequent t o act uarial valuat ion. According t o Indian GAAP t his amount has t o be included in theP&L. Prof i t s in FY2006 are hence higher by same amount .

CAGR3

1%

CAGR3

1%

122*


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Financial snapshot

1 After reducing provision of USD 58.7 mn for the deficit in BMGs pension liability)

0.54

117

169

232

1337

Consolidated

20

45

74

442

IMACID / BMGL

0.48

102

123

158

918

TCL

FY 2007FY 2006

971680Net Income

0.450.37EPS

24

34

137

IMACID / BMGL(Jan to Mar 06)

147122EBIT

170134EBITDA

912795Sales

ConsolidatedTCL

** Exchange rate of $1=Rs.43.47 as on 31st March 2007

** Exchange rate of $1=Rs.44.25 as on 31st March 2006

FY 2007 D bt S lit


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Debt-Equity Perspective

412 429

502592

0

200

400

600

800

1000

1200

FY 2006 FY 2007

USD

million

Tot al Debt Shar eholder 's Equit y

1.41.3

0.8

2.0

5.9

0

1

2

3

4

5

6

FY 03 FY 04 FY 05 FY 06 FY 07

(%)

Reducing interest cost

(% of sales)

1021

914

FY 2007 Debt Split

19%

36% 44%

1%

FCCB Banks/ Ot hers

Term Loans Cash/ Packing Credi t


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Credit Ratios

10.1

3.9 7.4

12.9

19.4 0.6

0.2

0.3

0.7

0.4

0

5

10

15

20

25


-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Int erest Coverage rat io Net Debt /Equit y


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Financial rat ios


3248.4859No. of DaysCash cycle

4761.5964No. of DaysAvg Invent ory

Turnover

5352.7849No. of DaysAvg Debtors Veloc i ty

2.32.161.9TimesFixed Asset Turnover

Act iv i ty

10.112.9019.4TimesInterest Coverage

0.70.80.7TimesDebt : Equi t yStabi l i ty

232170115USD MillionEBITDACash Generation

2.0121.5TimesMarket to Book Value

3.63.55%Dividend Yield

11110393INRNetw or th per Share23.6219.915.8INREarn ings per share

ShareholderReturns

91111%Net Prof i t Margin

171917%EBITDA MarginPro f i tab i l i ty

FY 2007*FY 2006*FY 2005UnitCategory


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Shareholder Returns23.6

7.0

10.910.3

19.9

15.8

8.0

5.0

6.55.5 5.5

7.0

224

40

55

103

201

138

0

4

8

12

16

20

24

FY '02 FY '03 FY '04 FY '05 FY '06 FY '07

Rs.

pershar

e

20

40

60

80

100

120

140160

180

200

220

240

Rs

EPS Div idend Aver age Mar ket Pr ice

Consi st ent and heal t hy di vidend payout


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Shareholder ReturnsDividend amount per share per year

5.00

6.00

7.00

8.00


Rupees

454947

6157

4%

10%

5%5%

3%

0

10

20

30

40

50

60

70


%

0%

2%

4%

6%

8%

10%

12%

Div idend Payout Di v i dend Yield


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Shareholder Returns

41 50

78

96

117

0.45

0.36

0.230.23

0.54

-

20

40

60

80

100

120

140


USDMn

-

0.20

0.40

0.60

0.80

USD

PAT Basi c EPS


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Cash and Investments

Cash and Bank Balance

-

40

80

120

160

200


USD

Mn

Cash and Bank

Total value of quoted investmentsas on March 31, 2007:

USD 300 million

Investment in Mutual Funds

as on March 31, 2007:USD 97 million


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Acquired Hind Lever Chemicals,

extended presence across all agrinutrients

Bought 33% stake in IMACID andsecurit ised key inputs

Acquired Brunner Mond Group of UKfor 801 crore became 3rd largestproducer of soda ash in the world

In FY07

Achieved highest sales ever across allkey products - soda ash, salt and urea

Capacity utilisation levels at all timehigh

Babrala facili ty most energy eff icient inIndia, amongst the best globally


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Completion of expansion to double

low cost natural soda ash facil it y atMagadi

Debottlenecking and expansion ofBabrala Urea plant

Enhance Soda ash, cement & Saltcapacit ies at Mithapur

Further enhance exist ing capacit yut ilisat ion levels and st rengthen

eff iciencies at all plants

Mordernisation of Mithapurchemicals plant

Build a global bicarbonate business Better processes to enable

production of saleable gypsum


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Increase t hrust in new business

segment s l ike f resh produce andbio-fuels

Enhance presence in bio and nanot echnology

St rong focus on research anddevelopment

Ident i f y viable acquisi t ionopportunities

Leverage t he considerablepot ent ial of t he agr icul t ural sect or


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THANK YOU

2007 Tat a Chem icals.

Singapore Investor Conference

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