PREPARED BY: NICHOLAS ANASINIS MARIA ISMAIL PATRICIA JURCA LEI YANG CORPORATE SUSTAINABILITY WORKOUT TEN YEAR SUSTAINABILITY PLAN APRIL 30, 2010

Global Purpose philanthropy community Tata Way measurable Impact Identity expansion stakeholders Profit leadership tension values Accountability Change Trust Conflict Growth reputation Culture

Corporate Sustainability (CS) is integral to value- creation in our businesses through the enhancement of human, natural and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice.

HOW ARE WE GOING TO GET THERE? Establish a whole system approach to sustainability Stay true to the Tata values throughout the supply chain Capitalize on sustainability as a value driver Meet & exceed regulatory and industry standards in target markets Manage externalities effectively Action Plan Supply Chain Initiatives Governmental Initiatives & Industry Standards Product Differentiation, Product Development & Innovation

ACTION PLAN Establishing business practices that dictate a holistic approach to sustainability PRODUCT DIFFERENTIATION, PRODUCT DEVELOPMENT & INNOVATION Identify companies within the Tata group which are leaders in sustainability oriented product and process differentiation and innovation Identify strengths/capabilities that make that differentiation and innovation possible Develop a replicable model for product differentiation and innovation which includes a filter for being mindful of possible externalities from different perspectives when articulating solutions to unmet social/environmental needs in target markets Utilize this model to improve product differentiation, development and innovation GOVERNMENT INITIATIVES & INDUSTRY STANDARDS Understand regulatory environment and industry standards in target markets Establish business practices to exceed the most stringent regulatory requirements and industry standards Apply these superior Tata standards consistently across different Tata companies Identify and leverage opportunities to partner with government for policy development incorporating Tata's superior environmental and social standards SUPPLY CHAIN INITIATIVES Identify best practices across sector Develop criteria for supply chain audit Supply chain mapping: identify all suppliers Conduct supply chain audit Encourage suppliers to adopt best practices Mandate suppliers to adopt best practices

HOW ARE WE GOING TO GET THERE? Apply a sustainability lens to acquisitions Acquisitions are a major part of Tata’s growth strategy Lower integration costs Reduce risk to reputation Action Plan Criteria to evaluate ‘sustainability fit’ of target acquisition Post acquisition sustainability implementation

ACTION PLAN Incorporating sustainability into Tata’s acquisition strategy CRITERIA TO EVALUATE ‘SUSTAINABILITY FIT’ OF THE TARGET ACQUISITION Find sustainability exemplars by sector Identify strengths/capabilities that make that sustainable model work Compare these strengths/capabilities with the strengths of an equivalent Tata company Identify the gaps to highlight the strengths needed by the Tata company to improve Develop and implement benchmarked practices in the company Identify challenges faced in implementation In hindsight, identify what features/characteristics of the company played a key role in making this implementation challenging Use these features/characteristics as a screening criteria for future acquisitions in that industry Learn with each subsequent acquisition and refine 'sustainability fit' criteria POST ACQUISITION SUSTAINABILITY IMPLEMENTATION Implement post-acquisition TQMS and TCCI processes/initiatives to the acquired company e.g. established frameworks to measure sustainability impacts such as the Tata Index for sustainable human development or abatement strategies for climate change

HOW ARE WE GOING TO GET THERE? Build a global brand Create a shared vision Be known Effectuate change Action Plan Internal Initiatives External Initiatives Leadership Initiatives Leadership with trust

ACTION PLAN Building a global Tata brand that embodies the Tata values LEADERSHIP Identify successor to Ratan Tata to take the Tata group global while embodying its values Continue to have commitment to sustainability and embodiment of the leadership protocol as key criteria in succession planning for all key positions Develop and execute sustainability training programs for key executives that promote a holistic approach to sustainability and address the implications and opportunities of truly making Tata a global brand from learnings of the initial sustainability strategies EXTERNAL Identify a major issue within each target market and focus on which issue can be addressed with current Tata capabilities (utilize model for product/process innovation and differentiation) Identify and engage strategic partners (business, NGO, government) to affect change by providing access to required resources/capabilities in the target market Celebrate success of sustainability initiatives in the target markets through brand building advertising campaigns INTERNAL Design 'Employee Sustainability Program' aimed at the local community of different target markets to engage Tata employees there and achieve cultural alignment and shared value entrenchment in Tata's global employee base Provide employees opportunities to work on self-identified sustainability projects, on paid company time, which are aligned with their unique technical skills and competencies Celebrate employee success stories

WHY EVA? EVA adopters deliver greater shareholder value Useful to analyze value driver Creates an ownership mindset in employees Better tool for strategic resource allocation

HOW IS VALUE CREATED? + Revenue Increase Government Initiatives & Industry Standards Product Differentiation, Development & Innovation Strategic Markets Lower WACC Government Initiatives & Industry Standards Strategic Markets Cost Reduction Supply Chain Initiatives Employee Sustainability Programs Sustainability Acquisition Criteria Higher EBIT Margin Wider Access to Capital

HOW DOES IT LOOK OVER 10 YEARS?

WHAT ARE THE CHALLENGES? Implementation Organizational structure Access to capital External factors

SO… DO THIS TOMORROW Discuss implementation with TQMS and TCCI Identify your sustainability champions

Q & A