February, 2014 Jindal Steel & Power Limited 1 Steel and Power - - PowerPoint PPT Presentation

Jindal Steel & Power Limited 1

Investor Presentation February, 2014

Steel and Power Industry -

An Overview

Jindal Steel & Power Limited 2

Jindal Steel & Power Limited 3

Global Steel Industry

.

For Jan to Sep, 2013

1582 1059 779 81 166 109 119 26 1529 999 725 77 169 111 122 24

World Asia China India EU CIS North America Middle East

Global Steel Production (Mt)

Jan-Dec '13 Jan - Dec '12

China Leading the way – India following

Jindal Steel & Power Limited 4

• Pellet prices static
• Fines and Lumps

marginally decline

• Sep, 13

Raw Material Prices - In India

International Market Domestic Market

100 110 120 130 140 150 160 170 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Current US$/MT Pellet 65.5, FOB-Brazil Fine 63.5, CFR-China HCC LV, FOB-Aus 5000 5500 6000 6500 7000 7500 8000 Rs/MT Pellet 63.5 Lump 65 Lump 63

• Pellet prices firmed up
• Aug, 2013.
• Lumps prices increased
• Aug, 2013

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Finished Product – International Price Trend

Indian Price Trend

400 450 500 550 600 650 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest

International Price Trend (USD/MT)

HRC Export FOB-Black Sea HRC Export FOB-China TMT Export FOB Black Sea TMT Export FOB China Billet Export FOB Black Sea Wire Rod -FOB China

Oct –Jan 14: Price movement:

• 2% increase in HR Coil
• 4% increase in TMT (FOB China) ,while 2% decrease for FOB Black Sea
• 2% Increase in Wire Rod (FOB China)

Source: BI - JSPL

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Finished Product - Price trend - India

Indian Price Trend

Source: BI - JSPL 5000 10000 15000 20000 25000 30000 35000 40000 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest

Domestic Price Movement

HR Coil Ex Works- Basic Rs/MT TMT- Raipur Basic Rs/MT Billet 125-Raipur, Basic Rs/MT Sponge Iron, Raipur Basic Rs/MT Pellet 63.5 FOR Barbil Lump 63- FOR Barbil Fines 63 FOR Barbil

Oct –Jan 14: Price movement:

• 3% increase in HR Coil
• 7% increase in TMT
• 8% increase in Pellet
• 5% increse in Lump
• 12% increse in Fines

Price Realisation is higher in India compared to International price.

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Indian Steel Industry - Exports Rise

Indian Price Trend

Source: BI - JSPL

Finished Steel : April - Dec '13

Qty (mt) % Change*

Crude Steel Production 59.332 1.8 Import (finished Steel) 4.099 (29.20) Export (finished steel) 4.136 9.5 Real Consumptionn 53.789 0.5

* over same period of last year

• India - Net Exporter in Dec 2013.
• Imports shows negative growth.
• Real consumption of finished steel marginally up.

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POWER INDUSTRY

Jindal Steel & Power Limited 9 616 2,384 2,944 5,736 6,452 10,177 13,394 US Australia Russia UK China Brazil India 739 777 862 1,403 937 831 200 400 600 800 1,000 1,200 1,400 1,600 FY08 FY09 FY10 FY11 FY12 FY17E 0% 4% 8% 12% Energy demand (bn kWh) Energy deficit (%)

Indian Per Capita consumption and Power Deficit

Source: Company filings, World Bank, Global Insight

Per capita consumption of power Power generation industry growth rate

2011 Annual per capita energy consumption (kWh)

Per capita consumption

• f electricity is

significantly below global average

Significant deficit in

power supply - leading to huge upside potential

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Installed Capacity as on 31st Dec, 2013

Indian Price Trend

159,794 4,780 39,893 29,463 233,930

• 50,000

100,000 150,000 200,000 250,000

59% 9% 1% 2% 17% 13% Coal Gas Diesel Nuclear Hydro RES 148 159 174 200 223 234 50 100 150 200 250 FY09 FY10 FY11 FY12 FY13 Q3FY14 138,213 20,381 1,200 4,780 39,893 29,463 Coal Gas Diesel Nuclear Hydro RES Source: CEA

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Growth in Thermal Capacity vs PLF%

Indian Price Trend

Source: CEA

94 102 112 132 152 160 77.20% 77.50% 75.07% 73.32% 69.95% 64.62% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 20 40 60 80 100 120 140 160 180 FY09 FY10 FY11 FY12 FY13 Dec'13 Inst.Cap (in GW) PLF (in %age)

12 Jindal Steel & Power Limited

Large capacity addition targets to meet the demand growth By fuel type By sector

199,877 69,280 10,897 3,060 5,300 30,000 318,414 Capacity at the end of XIth plan (31-Mar-12) Coal Hydro Lignite/Gas/LNG Nuclear Renewables Capacity at the end of XIIth plan (31-Mar-17) MW

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Year-Wise Target vs Achievement for 12th Plan

Indian Price Trend

Source: CEA

20000 40000 60000 80000 100000 2012-13 2013-14 2014-15 2015-16 2016-17 Total 17956 16402 20408 18820 14950 88536 20623 8264 28887 Ach Tar

14 Jindal Steel & Power Limited

257,481 7,440 27,000 38,000 35,000 364,921 At the end of XIth plan (31-Mar-12) HVDC Bipole lines 765 KV 400 KV 220 KV At the end

• f XIIth plan

(31-Mar-17) CKM

Sub-station

Robust plan to address transmission bottleneck

XII plan targets Transmission lines

399,801 149,000 45,000 76,000 669,801 At the end of XIth plan (31-Mar-12) 765 KV 400 KV 230/200 KV At the end of XIIth plan (31-Mar-17) MVA

Jindal Steel & Power Limited

• Face of Youthful Dynamism

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Ownership structure

Shareholding pattern (as on Dec 31, 2013) Key external shareholders

Shareholder name % held

HSBC Global Investment Funds 2.45 Morgan Stanley Asia (Singapore) PTE 2.20 Lazard Asset Management LLC 1.91 Other institutions 20.11

O P Jindal Group

Founded in 1952 US$18bn conglomerate Multi-national and multi-product steel conglomerate with business interests spanning across mining, power, industrial gases, ports and petroleum

Jindal Saw

• Mr. P.R. Jindal

JSL Limited

• Mr. Ratan Jindal

JSW Steel/ JSW Energy

• Mr. Sajjan Jindal

Jindal Steel & Power

• Mr. Naveen Jindal

Promoter Group 60% Institution s 27% Others 13%

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Industry veterans holding the top managerial positions

• Mr. Naveen Jindal – Chairman
• Member of Parliament;
• Ranked amongst the Asia’s 25 Hottest People in Business by the Fortune Asia magazine for turning a struggling steel company into one of Asia’s

blue-chip giants

• India’s Best CEO by the BT-INSEAD-HBR Study of the top value creators for the period 1995 to 2011 by the Business Today
• Featured among the top ten of India Inc's Most Powerful CEOs 2011 by IMRB survey for Economic Times-Corporate Dossier
• Conferred with the Ernst and Young Entrepreneur of the Year Award 2010 in the field of Energy and Infrastructure
• Management graduate from the University of Texas at Dallas, USA
• Mr. Ravi Uppal – Managing Director & Group CEO
• >36 years of experience in eng. and infrastructure
• Previously whole-time Director and President & CEO – L&T
• Group. Also held senior positions at ABB and Volvo
• Advanced MBA from Wharton, MBA from IIM Ahmedabad,

and B.Tech. from IIT Delhi

• Mr. K Raja Gopal – Director & Group CFO
• Over 31 years of experience out of which about 21 years has

been with ABB

• Chartered Account from the Institute of Chartered Accountants
• f India
• Mr. Anand Goel – Chief Advisor
• >36 years of experience with the O.P. Jindal Group
• Master's Degree in Business Administration from BITS, Pilani
• Member of the National Steel & National Mining committees of

FICCI and National Mining Committee of CII

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Industry veterans holding the top managerial positions

• Mr. Subrat Ratho– MD, CTL & Head of Odisha operations
• Previously Managing Director of Maharashtra State Power

Generation Company Ltd. and Mahaguj Collieries Ltd.

• Managing Director of the Maharashtra State Electricity

Transmission Company Ltd. and the MSEB Holding Company Ltd

• Joined IAS in 1986
• Mr. V K Mehta
• Over 36 years of experience in marketing
• Previously, he was working with SAIL, Kolkata as its Executive

Director, Marketing and was also on the Board of Directors of Mjunction and SAIL-SCI Shipping Co.

• Mr. R S Sharma – Managing Director & CEO, JPL
• Over 39 years of experience in the power sector
• Previously he was the Chairman and Managing Director, NTPC

Limited

• He has been honoured with several awards including honorary

fellowship from International Project Management Association, fellowship of World Academy of Productivity Science

• Mr. Jayant Kawale – Managing Director – Hydro & Renewables
• Over 28 years in administration in various functional fields both

at State and Central Government levels

• Worked as Joint Secretary (Hydro) in Government of India
• Drafted the current Hydro Power Policy of 2008 and has served
• n the Boards of all hydro PSUs of Government of India
• Mr. V.R. Sharma – Dy. Managing Director & CEO (Steel &

Cement)

• Experience of 27 years globally in the Steel industry with

various organizations

• Previously Jt. MD at Bhushan Power & Steel and Executive

Director (Corporate) at Ispat Industries

• BE (Mechanical) and MBA (Marketing) from the UK
• Mr. Rajeev Bhadauria – Director Group HR
• >28 years as a HR professional across Public and Private sectors
• Previously Regional HR head – NTPC and President HR –

Reliance ADA Group

• Post Graduate in Industrial Relations from the Power

Management Institute, NTPC and LLB from Allahabad University

• Mr. Rajesh Bhatia – CEO Global Ventures
• Over 20 years of experience in the field of Finance, Accounts,

Taxation, Administration and Commercial

• Played an important role in JSPL's overseas acquisitions in

Australia, Indonesia, South Africa, Mozambique, Madagascar, Mongolia & Oman, apart from arranging financing for greenfield expansion in Orissa and Jharkhand in India.

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Moving towards Plural Leadership

Strategic Governance Structure Group Executive Committee Core Management Team Senior Management Committee Operational Governance Structure ManCo For each Business Business Segments Steel & Cement Power CTL Global Ventures UniCo For each Location

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JSPL at a glance

Steel & Cement

Power

Mines & Minerals

Business segments

• Steel: 3MTPA
• Hot Briquetted

Iron: 1.5MTPA

• Pellet Plant: 4.5

MTPA

• Operational

: 2,437MW

• Iron ore: 2

MTPA

• Coal: 13

MTPA Jindal Steel & Power Limited (JSPL) is a major player in steel, power and mining Captive coal mines - Dongamahua and Tamnar (Chhattisgarh) Iron ore mine - Tensa, Odisha and Iron ore pelletisation plant at Barbil, Odisha Also present in Asia, Africa, Australia and Europe Revenues of US$3.60bn and cash profits of US$0.84bn (FY Mar’13)

Global Venture

• Asia
• Africa
• Australia
• Europe

Current Capacity

Capacity as on 31st March 2014

• Steel: 8.25

MTPA

• Pellet Plant: 9.0

MTPA

• Operational

: 4,507MW

• Iron ore: 2

MTPA

• Coal: 16

MTPA

• Asia
• Africa
• Australia
• Europe

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Product range

Angles and Channels Fabricated Structures Hot Rolled Plates and Coils Parallel Flange Beams Rails TMT Rebars Wire Rods Power

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Overview of Existing Capacities - Steel and Power

Raigarh Angul Patratu Barbil

Operational

Raipur

 Steel : 3 MT  Power: 893 MW

Under implementation

 Plate Mill: 1.5MT  SMS Plant: 1.6 MT  Power: 810 MW  Wire Rod: 0.6MT  Bar Mill: 1.0MT  Steel capacity: 3.0 MT  Power: 1,320 MW  Pelletization Plant:

4.5MT

 Pelletization Plant:

4.5MT

 Machinery & Castings:

11,500 T

 Ingots: 30,000 T  CF Castings: 3,000 T

Oman

 Phase 1: SMS Plant :

2MTPA  HBI Plant: 1.6 MTPA

• Upgradation of existing

facilities from 3 MT to 3.75 MT in Feb/March, 2014

2.5 MT Steel plant

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Expansion Plans - Steel and Power

3.00 3.75 3.75 3.75 2.50 2.50 6.50 2.00 2.00 2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 3.00 8.25 8.25 12.25 Existing Q 4, FY 14 FY 15 FY 16

MTPA

Oman Angul Raigarh 4.50 4.50 4.50 4.50 4.50 4.50 4.50 0.00 2.00 4.00 6.00 8.00 10.00 4.50 9.00 9.00 9.00 Existing Q 4, FY 14 FY 15 FY 16

Pellet(MTPA)

Pellet-II Pellet-I 1000 1000 1000 1000 1200 1200 1200 600 1200 1200 500 1000 1500 2000 2500 3000 3500 4000 1000 2800 3400 3400 Existing Q 4, FY 14 FY 15 FY 16 2x600 MW-Phase II 2x600 MW-Phase I 4x250 MW

POWER -JPL

Steel Segment

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Performance Highlights –FY 14

• 10.8% growth in Production volume (Q o Q)
• Improvement in Steel prices (4% UP Q o Q)
• Retail Sales register 78% growth (Q o Q)
• Reduction of receivables and Inventory.

26 Jindal Steel & Power Limited

Production , Sales and NSR.

7.7 6.9 7.7 7.9 7.1 7.4 8.2 6.0 6.5 7.0 7.5 8.0 8.5 Q1 Q2 Q3 Q4

Production of Crude Steel (in Lakh MT)

FY 13 FY 14 6.3 6.8 7.9 9.7 7.2 8.0 8.1

• 2.0

4.0 6.0 8.0 10.0 12.0 Q1 Q2 Q3 Q4

Total Sales (in Lakh MT)

FY13 FY14

• Production volume
• Sales volume
• NSR

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Export Sales – FY 14

19 104 140 263 119 138 150 406 50 100 150 200 250 300 350 400 450 Q1 Q2 Q3 TOTAL FY - 2012-13 FY - 2013-14

• 7% growth in Export Sales in Q3 (Q o Q)
• 54% growth in Export Sales in FY 14 (Y o Y)

In MT

28 Jindal Steel & Power Limited

Launch of Panther Brand on 5th August (National Event Organized) Launch of Brand in every state being carried out. Jaipur, Raipur, Kolkatta, Guwahati already covered Launch events in November: Hisar, Patna, Varanasi, Ranchi Jindalpanther.com launched 731 Hoardings installed 450 Shop boards installed across country. More underway Training sessions for Distributors & Dealers being organized across country

Launch of Panther TMT Bars Brand

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Retail Volume Growth – FY 14

682 3,534 7,359 17,845 17,092 19,832 35,315

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14

• 78% Growth in Sales Q o Q Basis
• 5 times growth on Y o Y Basis

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How JSPL and the peers fared….

Indian Price Trend

Source: BI - JSPL 1000 2000 3000 4000 5000 6000 7000 8000 JSPL SAIL TATA JSW ESSAR RINL

Flat Product Sales (MT) - (Apr - Dec)

9m FY 12-13 9m FY13-14

• JSPL registered 15% growth in

Flat product sales

• Sail grew by 9%
• TATA grew by 38%
• JSW grew by 13%
• Essar declined by 16%
• JSPL emerged the front runner

in Long Product Sales

• JSPL - 10% growth
• Sail grew by 5%
• TATA declined by 7%
• JSW grew by 6%
• RINL grew by 7%

1000 2000 3000 4000 JSPL SAIL TATA JSW ESSAR RINL

Long Product Sales (MT) - (Apr - Dec)

9m FY 12-13 9m FY13-14

Power Segment

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Jindal Power limited (JPL)

96.43% subsidiary of JSPL

Existing Units

4 X 250 MW Sub Critical Thermal IPP (1000 MW)

Under Implementation

4 X 600 MW Sub Critical Thermal Power Project (2400 MW)

33 Jindal Steel & Power Limited

JPL financials

Particulars Net Sales(Cr.) PAT (Cr.) Generation

(MU)

PLF For the Quarter 3rd Qtr. 2012-13 595 267 2116 96% 2nd Qtr. 2013-14 654 301 2099 95% 1st Qtr. 2013-14 636 321 2184 100% For the Year Year 2011-12 2980 1765 8589 98% Year 2010-11 3338 2002 8598 98% Year 2009-10 3922 2319 8148 93% Year 2008-09 3257 1582 6368 79%

34 Jindal Steel & Power Limited

JPL Performance Highlights – FY 14

• JPL topped the list for highest PLF among the major 25 Thermal Power plants

above 200 MW capacity.(By CEA Till Dec’13)

• Station achieved Generation of 2116 MUs in Q3 FY14 as compared to 1790

MUs in Q3 FY13.

• Heat Rate of 2291 Kcal/Kwh achieved
• Synchronization done for Unit 1 and 2 of 600 MW.

Global Ventures Segment

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Summary of International operations

 Proposed Cement Plant

Madagascar, Africa

Medium to large size

deposits of prime hard coking and low ash – low sulphur thermal coal for

• pen-cast operation

Indonesia, Asia

Acquired controlling stake

in Gujarat NRE coking coal Limited

Australia

Developing a coal mine (10 MTPA) in

Mozambique’s coal-rich Moatize region

Coal resources estimated at 1.2 billion

tonnes including coking coal

Mozambique, Africa

• JSPL’s Kiepersol Colliery produces

about 1.2 MTPA of Anthracite coal, sold domestically and internationally Plans to ramp up capacity to 2 MTPA

• South Africa, Africa

2 MT HBI Plant – plan to

make it an Integrated Steel Plant

Shadeed, Oman

 Acquired CIC Energy in 2012

for 120 Mn USD

Coal Mine with Resource of

• ver 3 billion MT (high grade

thermal coal)

Botswana, Africa

Jindal Steel & Power Limited 37

Jindal Shadeed –Oman

In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC , a company incorporated under the laws of the Sultanate of Oman Installed a 1.5 MTPA Gas-based HBI plant at Sohar Industrial Port with an investment of US$ 525 million and commenced production in January 2011 Adding a steelmaking facility of 2 MTPA in Oman; it will set up the first integrated steel plant in the Sultanate of Oman

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Performance Highlights – FY 14

GLOBAL VENTURES – OMAN

Oman clocked record sales volume in Q3 FY14 – 498,750 MT (36% increase over Q2 13-14

and 47% increase over Q3 last year)

Production increased to 378,600 MT (20% increase over Q1 13-14) Sales (in volume) increased to 368,136 MT (40% increase over Q1 13-14, 30% increase

• ver Q2 last year)

Sales (in Mn USD) increased to 129 Mn $ (33% increase over Q1 13-14, 20% increase

• ver Q2 last year)

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GLOBAL VENTURES - MOZAMBIQUE

• Allocation for movement of 2,50,000 Tons per quarter obtained on Sena Line
• JSPL Mozambique’s First coal loaded train from Moatize to Beira moved on 07/11/2013
• 95334 MT coking coal production in Q3 13-14 compared to 67120 MT in Q2 13-14
• 99400 MT sales achieved in Q3 13-14 (96,900 MT sold in Q2 13-14)

Performance Highlights – FY 14

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Mozambique, Africa

• Potential Resource: 2 Billion MT
• Grade: Semi Hard coking coal , High Grade

Thermal Coal

• Current Mining @ 1.5 MTPA run rate
• By March 31, 2014 Mining @3 MTPA run rate
• 3 MTPA Coal Washery commissioned

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• GUJARAT NRE Coking Coal Ltd is an ASX listed

company producing hard coking coal.

• 100% owner of 2 underground mines in NSW,

Australia

• NRE No 1 with 314 MT Resources and 92.0

MT of Reserves

• Wongawilli with 337 MT Resources and

33.4 MT of Reserves

• Total Resources 652Mt
• Investment –A$ 214 million made for

65.84% shareholding interest.

• Also subscribed to Rights Issue in Feb 2014

– A$ 26 million.

• Took over control from 15th November

2013

Gujarat NRE Coking Coal Limited

Jindal Steel & Power Limited 42

South Africa, Africa

Southern Africa head office is based in Johannesburg, South Africa Operations include Kiepersol Colliery outside the town of Piet Retief in Mpumalanga province The mine produces high-quality anthracite coal, sold nationally and internationally Underground mining with 1 MTPA capacity annually

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Indonesia, Asia

Thermal Coal Asset

Large size deposit of low ash – low sulphur thermal coal for open cast operation Coal mining license obtained in 2009 for 10 years till March 2018 for over 35.9 square Kilometres Permit received from the Ministry of Forest for the entire concession area MoU signed with Bupati Barito to develop road for coal hauling 139 hectares acquired for the first phase of mining Acquired 17.7 hectares for the development of captive coal terminal for coal handling and barge loading at Barito River

Coking Coal Asset

Exploration License over 100 square kilometre in Central Kalimantan Medium to large size deposits of prime hard coking and thermal coal for open-cast

• peration Pit Sampling

Financial Profile

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Consistent Growth in operations

1,009 1,999 2,039 2,411 3,348 3,642 FYE Mar'08 FYE Mar'09 FYE Mar'10 FYE Mar'11 FYE Mar'12 FYE Mar'13

Revenue

(USD Million.) 41% 54% 47% 48% 38% 34%

FYE Mar'08 FYE Mar'09 FYE Mar'10 FYE Mar'11 FYE Mar'12 FYE Mar'13

20%

6-year CAGR

EBITDA Margin PAT

(USD million.) 333 771 875 940 1,025 844 FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13

Cash Profit

(USD Million.)

230 553 668 699 736 535 FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13

24%

6-year CAGR

15%

6-year CAGR 6-year CAGR

17%

46 Jindal Steel & Power Limited

Standalone Financials

Note: Exchange rate USD/INR 62.77 for all years

Particulars (Rupees in Cr.) 31.12.2013 30.09.2013 31.12.2012 Y ON Y Q ON Q Turnover-Total 3,777 3,656 3,821

• 1%

3%

• Export

896 930 595 50%

• 4%

EBITDA 1,210 983 1,278 PBT 546 352 740

• 26%

55% Profit after Tax 366 257 520

• 30%

42% Cash Profit 730 582 814

• 10%

25% CAPEX 1,614 1,571 1,411 For the Quarter ending %

Particulars FY % (Rupees in Cr.) 31.12.2013 31.12.2012 2012-13 Y ON Y Turnover-Total 10,858 10,741 14,955 1%

• Export

2,489 1,260 1,928 98% EBITDA 3,041 3,576 4,613 PBT 1,216 1,601 2,098

• 24%

Profit after Tax 861 1,115 1,462

• 23%

Cash Profit 1,867 1,971 2,658

• 5%

CAPEX 4,413 3,847 4,667 For the 9 Month ending

47 Jindal Steel & Power Limited

Consolidated Financials

Particulars (Rupees in Cr.) 31.12.2013 30.09.2013 31.12.2012 Y ON Y Q ON Q Turnover-Total 5,377 4,984 4,802 12% 8% EBITDA 1,701 1,457 1,790 PBT 819 627 1,147

• 29%

31% Profit after Tax 559 455 870

• 36%

23% Cash Profit 1,093 907 1,285

• 15%

20% CAPEX 2,548 3,571 2,660 For the Quarter ending %

Particulars FY % (Rupees in Cr.) 31.12.2013 31.12.2012 2012-13 Y ON Y Turnover 14,901 14,158 19,807 5% EBITDA 4,463 5,079 6,669 PBT 2,116 2,892 3,833

• 27%

Profit after Tax 1,515 2,159 2,912

• 30%

Cash Profit 2,929 3,367 4,593

• 13%

CAPEX 8,688 7,496 8,983 For the 9 Month ending

48 Jindal Steel & Power Limited

Key Ratios and Net debt Levels

Standalone 2013-14 2013-14 2012-13 2012-13 Ratio (%) Q3 Q2 Q3 Annual

EBITDA to turnover 32.03 26.90 33.45 31.04 Profit before tax to turnover 14.45 9.62 19.37 14.03 Profit after tax to turnover 9.68 7.02 13.62 9.78 Debt Equity Ratio 1.74 1.72 1.65 1.66 Net Debt (Rs. in Cr.) 22,296 21,806 19,562 20,440

Consolidated 2013-14 2013-14 2012-13 2012-13 Ratios (%) Q3 Q2 Q3 Annual

EBITDA to turnover 31.63 29.23 37.27 33.67 Profit before tax to turnover 15.23 12.59 23.89 19.35 Profit after tax to turnover 10.40 9.13 18.12 14.70 Debt Equity Ratio 1.52 1.30 1.15 1.15 Net Debt (Rs. in Cr.) 31,602 29,947 23,435 24,418

*Net Debt as on 31st December, 2013 excludes debt of Rs. 2530 Cr. on the Balance sheet of Gujarat NRE Australia

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Way Forward

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Financial Objectives

EBITDA Margin over 30% Debt / Equity ratio 2:1 (Max) Net Debt to EBITDA < 4x Financing Overseas project on its own merits without any

burden on Parent company in India.

Note: Debt excludes any new Strategic Acquisition

51 Jindal Steel & Power Limited

Going Forward: Prime Focus

Commission On-going Projects Entire Angul Phase – 1 project by March 31, 14 Oman 2 MTPA by March31, 2014 Pellet Plant II by March, 2014 Stabilize production from SMS and Plate Mill in Angul Target “Break - Even” performance in Mozambique by FY 15 Commission three units of 600 MW at Tamnar by March 31, 2014 and 4th unit in

Q1 of FY 15

To target 45% of total revenue from exports

52 Jindal Steel & Power Limited

New Initiatives

Business Restructured in focussed Business Segments & Business Units Implementation of Strategic & Operational Governance Structure Launch of Channel financing Expanding Geographical reach of Steel sales – New offices setup in South Africa,

Dubai, Indonesia

Entry in new segments with Angul Plate Mill e.g , Wind Mills, Shipbuilding, API Focus on value added grades Development of dedicated EPC group for Project Management & Execution

Making sustainability a focused priority

Jindal Steel & Power Limited 54

A responsible corporate citizen

– Has installed state-of-art pollution control devices suitable for the purpose of reducing atmospheric pollution – Real time check on performance of these devices is done through automated online analyzers such as Opacity Meters and Ambient Air Quality Monitoring Stations – Water pollution is controlled by adopting a range of stringent regulatory measures and monitoring processes – Has attained ‘Zero Discharge’ status by adopting state-of-the-art technology for water treatment – JSPL continuously implements the concept of Green Productivity and takes preventive measures in and around its various facilities – Rainwater harvesting, mass tree plantation during monsoon is among regular eco-friendly efforts of the company – Training programmes are offered to the employees

• f different departments to increase their awareness

in housekeeping – All Roads are cleaned and sanitized, Work areas are regularly maintained and well painted, Water stagnation is not allowed

Environment concerns Control of air pollution Control of water pollution

– The environment management department of the company takes care of all the activities related to environmental safeguards – Basic functions include constant monitoring of emissions/discharges and their control and compliance to statutory obligations on all environmental issues

Solid waste management Ecological conservation House keeping activities

– Pursues the policy of three R’s -- Recycle, Reduce and Reuse – to managing its waste – Power is generated from coal rejects, fines and middlings in AFBC boilers – Slag generated from blast furnace is 100% reused in cement manufacturing and brick making

55 Jindal Steel & Power Limited

A responsible corporate citizen (continued)

–

• O. P. Jindal Hospital & Research Centre provides

facilities including medicine, surgery, gynaecology,

• rthopedics and pediatrics in the Raigarh district

– Regular village medical camps are organised through mobile medical van services with specialist doctors in Patratu, Angul and Raigarh – JSPL has been organising family planning camps bringing couples under family welfare – Cataract operations are conducted for patients annually, free of cost. Spectacles & fruits are distributed to all patients after the operation – Pulse polio vaccination and HIV/AIDS detection camps are organized from time to time in Raigarh, Patratu and Angul – For the supply of clean drinking water, non- functional hand-pumps have been repaired in all villages of the operational area – JSPL has undertaken the responsibility of infrastructure by building approach roads, water tanks, drains and village ponds – Developed the Kamla Nehru Park and musical fountain in the city that provides leisure, recreation and entertainment to the citizens of Raigarh – Sports gear has been distributed to several rural youth clubs for promotion of sports & games – JSPL has made model kitchen gardens for providing vegetables to families aiding mushroom cultivation in pockets, helping in income generation of the people – Established by the Red Cross Society and the social welfare department at Raigarh

Education Healthcare Community development

– JSPL has set up the O. P. Jindal Global University (JGU) and the Jindal Global Law School (JGLS) – O.P. Jindal Knowledge Park has been formed to provide opportunity in technical education –

• O. P. Jindal School-A 10+2 co-educational

school with all modern facilities at Raigarh – O.P. Jindal Community College offering 37 technical vocational programmes on five campuses – IT Certificate Course of duration of 3/6 weeks for tribal and marginalized girls belonging to poor families in the remote village of Kunjimora – Supports self-help groups for imparting vocational training in tailoring & embroidery – Financial support to meritorious and needy students

Jindal Steel & Power Limited 56

For any information please contact: - D.Balasubramanyam – Head of Investor Relations Tel: - 011-26739166 Mobile: - 8130755166 Email: - d.bala@jindalsteel.com

• Ms. Pallavi Kumari –

Investor Relations Tel : - 011-26739165 Mobile:-8800094171 pallavi.kumari@jindalsteel.com

57 Jindal Steel & Power Limited

THANK YOU

www.jindalsteelpower.com

Jindal Steel & Power Limited 58

Snapshots of Projects

Snapshots – SMS & Slab caster (Angul)

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Snapshots – SMS & Slab caster (Angul)

60

Snapshots – CGP (Angul)

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Jindal Shadeed – DRI plant

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Jindal Shadeed – Continuous Caster

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SMS Overall Progress Photo

Oman – 2 MTPA SMS

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Jindal Power limited (JPL)

Main Plant 258 km transmission line from Raigarh to Raipur 6.9 km cross country pipe conveyor belt for coal transportation Captive Coal Mine

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JPL – 2400 MW Panoramic View

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Unit 1 – 600 MW

Unit 1 – Boiler Front View Unit 1 – Boiler to EPS Unit 1 – EPS Inlet Unit 1 – Main oil Tank

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Unit 2 – 600 MW

Unit 2 – Boiler Rear view Unit 2 – RHS Mill Bay Unit 2 - TG Unit 2 - Tipper

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Unit 3 – 600 MW

U-3 Transformer Yard U-3 Main Oil Tank U-3 TG U-3 – Boiler Front View

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Unit 4 – 600 MW

U-3 – Boiler Front View U-4 TG Floor U-4 Boiler U-4 EPS U-4 EPS