TI' ^-. TATA August 8, 2019 National Stock Exchange of lndia Ltd. The General Manager Exchange Plaza Corporate Relations Department Bandra-Kurla Complex BSE Limited Phiroze Jeejeebhoy Towers Bandra (E) Mumbai 400 051 Dalal Street Svmbol: TATACHEM Mumbai - 400 00"1 Scrio Code: 500770 Dear Sir/Madam, Sub: Submission of Analvsts/lnvestors Presentation Ref.: Letter dated Julv 23. 20{9 informinq about Analvsts/lnvestors Presentation Further to our referred letter, please find enclosed a presentation to be made to analysts/investors on the results for the first quarter ended June 30, 2019 for the analysts/investors call to be held today i.e. Thursday, August 8, 2019. The presentation is being submitted in compliance with Regulation 30(6) read with Schedule lll Part A Para A of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations, 2015. A copy of the presentation is also uploaded on the Company's website www.tatachemicals.com. You are requested to take the same on record. Thanking you, Yours faithfully, For Tata Ghemicals Limited General Counsel & Company Secretary Encl: As above TATA CHEMICALS LIMITED Bombay House 24 Homi Mody Street Fort Mumbai 4O0 0Ol te q zl 6;6S Azsz Fax 91 22 6665 av3t44 wwwralachemi'als (om CIN : L242l9MHl 939PLC0O2893
Analyst / Investors Communication on Financial results for quarter ended June 2019 Date: 8 August 2019 1
Safe Harbour Statement “This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise of Tata Chemicals Limited, its direct and indirect subsidiaries and its associates. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand / supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government policies and regulations, tax laws, and other statutes and incidental factors. You are urged to view all statements contained herein with caution. Tata Chemicals Limited does not undertake any obligation to update or revise forward look statements, whether as a result of new information, future events or otherwise” 2
Business Overview 3 rd largest Soda Ash producer globally │ 5,000+ employees across 4 continents │ 160 million households consume Tata Salt each month 3
Key Highlights Demerger of Consumer Products Business to TGBL , subject to the requisite statutory and regulatory approvals Revenue from Operations Standalone : ₹ 1,031 Cr , up by 4% Consolidated : ₹ 2,897 Cr , up by 6% Net Profit for the Company (Continuing & Discontinued Operations) Standalone : ₹ 254 Cr , down by 1% Consolidated : ₹ 313 Cr , up by 19% Borrowing and Cash Position In Standalone books net borrowings is Cash Positive In Consolidated books net borrowings stood at ₹ 1,871 Cr , Cash and Cash equivalent ₹ 4,463 Cr 4
Our Transformation Specialty Chemicals Specialty Chemicals Consumer Business Basic Chemistry Basic Chemistry Fertilizer 2016 2019 and beyond…. From 4 businesses…. …To 2 focused science driven chemistry businesses
Key levers to deliver on our transformation Value-added specialty portfolio Science-led High stakeholder engagement differentiation Sustainability Operational Excellence Customer Centricity 6
An Innovative, Science-led sustainable Chemistry company TATA CHEMICALS Mission : Serving Society through Science Vision : Will be a leading sustainable Chemistry Solutions Company serving customers based on innovative, science-led differentiated products and solutions Basic Chemistry Specialty Chemistry Agro Sciences Soda Ash Nutritional Sciences Sodium Bicarbonate Material Sciences Energy Sciences Salt Manufacturing Technology (R&D) , Digitization, Sustainability Unified Approach, Underpinned by Science and Rooted in R&D VALUES : SPICE (Safety, Passion, Integrity, Care, Excellence) 7 7
A strong basis in Chemistry Specialty Chemistry Basic Chemistry Nutritional Material Sciences Energy Sciences Agro Sciences Sciences World’s 3 rd World's 6 th largest producer Reach of 80% of Green patented Become a leader in Energy Chemistry in India’s districts technology for largest of Sodium Bicarbonate India with a target of producer of manufacturing Highly 25% market share Soda Ash India’s 1 st and only Dispersible Silica (HDS) ~13.5 Million farmer in Lithium ion battery for Tyres Nutritional Sciences business Supplier of (FOS /GOS) connects Choice to Strong R&D capabilities including Global Brands Salt Manufacturing crossed nanotechnology 1Mn-mtpa in 2019 (nZnO) 8
Target Portfolio structure Strengthening the core Creating categories for future Basic Chemistry Specialty Chemistry Nutritional Material Energy Soda Ash Chlor Caustic Bromine Agro Sciences Sciences* Sciences Sciences • Crop protection • FOS/GOS • HDS • Lithium • Animal/Human Nutrition • Nano Zinc Oxide solutions solutions: • PGNs • Salt Manufacturing • Rubber Additives • Cells, Actives, • Organic manure • Sodium Bicarbonate • Recycling • Seeds • Aeroponics/Natural • Fuel Cells Extracts Revenues – FY25 (E) Revenues – FY19 Basic Specialty Specialty Chemistry Chemistry, Chemistry, 30% 49% 51% Basic Chemistry 70% 9 *Includes Salt Mfg. and BiCarb (India)
Our Strategy going forward … Scale existing Agro Sciences portfolio & build capabilities to offer next-gen Agri Maintain Global Leadership in services Soda Ash and scale further Expand Nutraceuticals Specialty Basic portfolio into gut health for Chemistry Chemistry Launch of value added human and animal nutrition products like Speckle grade • • Asia’s largest chemical R&D capabilities Soda Ash, • complex Science led Focus on launching value • Access to one of the differentiation added branded products like Focus on debottlenecking world’s largest reserves of • Customer centricity pharma grade bicarb and capacity expansion Trona ore • The UK's only & Africa’s largest manufacturer of soda ash Explore opportunities in HDS Digitalisation and Customer adjacencies Value Creation Build capabilities in new-age Focus on Operational energy materials for Li-ion Excellence and Cost chemistry Competitiveness ₹1,600 Cr investment committed. ₹2,000 Cr investment committed. Target ROCE of 18-20% Target ROCE* of 18-20% 10 *Blended ROCE for individual businesses
Q1 June 2019 Financial Updates 11
Financial Updates Standalone (₹ Cr) 26% 26% 25% 26% 267 255 256 254 1,031 989 Q1 June 18 Q1 June 19 Q1 June 18 Q1 June 19 Q1 June 18 Q1 June 19 Revenue up by 4% EBITDA up by 4% PAT down by 1% Consolidated (₹ Cr) 11% 20% 10% 313 18% 592 262 491 2,897 2,744 Q1 June 18 Q1 June 19 Q1 June 18 Q1 June 19 Q1 June 18 Q1 June 19 Revenues up by 6% EBITDA up by 21% PAT* up by 19% 12 Note: PAT includes Continued and Discontinued Operations, after Share in JV & associates & before NCI
Segment Revenues and Results Consolidated Standalone *Excludes Inter Segment Revenue of ₹ 181 Cr (PY ₹ 201 Cr) & Unallocated *Excludes Inter Segment Revenue of ₹ 179 Cr (PY ₹ 198 Cr) & Unallocated Revenue of ₹ 4 Cr (PY ₹ 5 Cr) Revenue of NIL (PY ₹ 3 Cr) Q1 June 2018 ( ₹ Cr) Q1 June 2019 (₹ Cr) Q1 June 2018 ( ₹ Cr) Q1 June 2019 (₹ Cr) 11 11 Revenues* 582 634 438 495 ₹ 2,744 Cr ₹ 2,897 Cr ₹ 989 Cr ₹ 1,031 Cr 438 495 704 734 1,946 1,920 (5) (5) 67 76 72 Results 82 72 82 ₹ 425 Cr ₹ 466 Cr ₹ 281 Cr ₹ 272 Cr 275 318 203 204 Basic Chemistry Products Consumer Products Specialty Products 13
Borrowings Position as on June 2019 Standalone (₹ Cr) • In Standalone books, 3,318 14 the Company is net 1 708 721 cash positive (2,597) • Also scheduled to repay approximately Gross Debt Mar19 Net Change Revaluation Gross Debt Jun19 Cash & Cash Net Cash ₹ 670 Cr during H2 of Equivalents FY20. Consolidated (₹ Cr) • Paid dividend during the quarter 236 45 • International 4,463 entities, continues to 6,334 6,143 focus on generating 1,871 cash. Gross Debt Mar'19 Net Change Revaluation Gross Debt Jun'19 Cash & Cash Net Debt Equivalents 14
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