Investor / Analyst Presentation Jindal Steel and Power Ltd November - - PowerPoint PPT Presentation

Jindal Steel & Power Limited 1

Investor / Analyst Presentation

Jindal Steel and Power Ltd

November 2013

Jindal Steel & Power Limited 2

Safe Harbour Statement

This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation.

Economic & Industry Overview

Jindal Steel & Power Limited 3

Jindal Steel & Power Limited 4

Global Steel Outlook: India a leader in steel production…

• One of the largest producers globally… (Production data for FY 2012)

717 107 89 78 70 69 43 MT

• … supported by deep domestic iron ore reserve base

35,000 29,000 25,000 23,000 7,000 6,900 6,300 1,000 17,000 16,000 14,000 7,200 4,500 2,100 2,300 650 MT Crude ore reserves Iron content

4th largest producer

5th largest Iron ore reserves in the world

Jindal Steel & Power Limited 5 50,000 55,000 60,000 65,000 70,000 Jan Feb Mar Apr May Jun Jul Aug Sep

China ('000 MT)

FY 12 FY 13

11% 12.8%

Global Steel Industry - Production

110,000 115,000 120,000 125,000 130,000 135,000 140,000 Jan Feb Mar Apr May Jun Jul Aug Sep

World ('000 MT)

FY 12 FY 13

4.6%

6.5% 2.7% 5.2% 6.1%

 World Crude Steel Production in

Q2 up by 4.6% (vs Q2 12-13)

 For H1, World’s production up by

3.6% (vs H1 12-13)

 China’s Steel production in Q2 up 10% (vs Q2 12-13)  For H1, China’s production up by 8.7% (vs H1 12-13)

5,600 5,800 6,000 6,200 6,400 6,600 6,800 7,000 Jan Feb Mar Apr May Jun Jul Aug Sep

India ('000 MT)

FY 12 FY 13

4.3% 0.9% 4.7%

 India’s Production in Q2 up by 3.2% (vs Q2 12-13)  For H1, World’s production up by 2.7% (vs H1 12-13)

3.2% 10%

Jindal Steel & Power Limited 6

Performance & Capacity Utilization showing signs of Improvement

3.4% improvement in September

For Jan to Sep, 2013

Jindal Steel & Power Limited 7

400 450 500 550 600 650 700

Price trend - Finished Product:

IN Q2 WE SAW:

 4.7% decrease in HR Coil  0.5% increase in HR plates  0.8% increase in Rebar

Plate

Rebar Coil

15000 20000 25000 30000 35000 40000 45000 HR Coil ExW, Basic Rs/ton TMT Rebar ExW, Basic Rs/ton Billet 125mm ExW Raipur, Basic Rs/ton Sponge Iron 88 Mtz, 78 FeM ExW Raipur, Basic Rs/ton

Sponge Iron

Billet Coil Rebar IN Q2 WE SAW:

 8.7% increase in HR Coil  0.57% Decrease in Billet  5.45% increase in Sponge Iron

Indian Price Trend Global Price Trend - Finished Product ($ / ton) FOB Black sea

Jindal Steel & Power Limited 8

Price Trends – Raw Material

5000 5500 6000 6500 7000 7500 8000 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Current Rs/MT (FOR Barbil) Pellet 63.5 Lump 65 Lump 63 100 110 120 130 140 150 160 170 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Current US$/MT Pellet 65.5 Fine 63.5 HCC LV

FOB, Brazil CFR China FOB, Australia

PELLETS

 International Price went up

from 143$ (June) to 161$ (Sep)

 Domestic prices went down

from Rs 6750 (June) to Rs 6350 in Jul and Aug. It rose back to 7000+ in Sep due to strong exports COKING COAL

 Prime Hard Coking coal

increased from 135$ (June) to 151$ (Sep) International Market Domestic Market

Jindal Steel & Power Limited 9

India is a growing economy driven by domestic consumption

Savings and investment trends

Gross national savings (% of GDP) Total investment (% of GDP)

Infrastructure investment as % of GDP Sector-wise infrastructure investment (INRbn)

9,061 23,860 56,317 10,000 20,000 30,000 40,000 50,000 60,000 X Plan XI Plan XII Plan

Electricity Roads & Bridges Telecom Railways Irrigation Water & Sanitation Ports Airports Storage Gas

6.3% 7.3% 6.8% 8.4% 7.3% 7.4% 7.7% 8.1% 8.6% 9.0% FY08 FY09 FY10 FY11 FY12E FY13P FY14P FY15P FY16P FY17P

Jindal Steel & Power Limited 10

India is expected to witness strong steel demand…

India has one of the lowest per capita steel consumption in spite of being the 4th largest steel producer in the world With private sector contributing a significant share of the production

67 68 72 75 76 77 FY07 FY08 FY09 FY10 FY11 FY12

1,114.1 506.0 477.4 306.2 216.9 56.9 South Korea Japan China US World India 2012 per capita consumption – (kg)

Share of private sector in country's crude steel production (%)

Jindal Steel & Power Limited 11

Snapshot of Indian Steel Industry

RU - 25 April 2013 V0

91 91 89 90 88 88 91 86 83 78 80 82 84 86 88 90 92 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 %

Indian Capacity Utilization

Capacity Utilisation (%) 48 51 57 60 66 75 78 87 94 43 46 51 54 58 66 71 74 78 20 40 60 80 100 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Indian Steel Trend

Capacity Production 12.9 11.4 0.4 13.3 11.9 6.8 4.1 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Steel Consumption Growth (%)

Jindal Steel & Power Limited 12

How the Indian Industry fared

• Production of crude steel during H1, 13-14 was 39.6 Mt, (2.5 % up compared to H1 12
• 13)
• Steel Demand in India registered a growth rate of only 0.8% in H1 2013 -14
• Imports stood at 3.04 Mt during H1, 13-14, a decline of 22.8 % compared to last year
• Exports stood at 2.51 Mt during H1, 13-14, a growth of 6.0 % compared to last year
• Pellet prices rise back to Rs 7000+ levels in Sep’13 due to surge in pellet exports
• Pellet prices are again going downward as:
• Iron ore as well as pellet prices in the international market are corrected by

US$5-10/MT

• Rupee appreciated by around Rs.7/$ compared to the previous month levels.
• Higher ocean freight (US$14/MT for China)
• Price differential between pellet and iron ore reduced as Buyers preferred cheaper

iron ore with respect to pellet.

Jindal Steel & Power Limited 13

How the Indian Industry fared

Source: JPC N.B.1 H1 JSPL L.P. growth highest; F.P. growth 2nd highest N.B.2 Tata new HSM (3.0 MT) fully commissioned in FY 13-14

Long Products Sales in H1- FY13-14 vs FY 12-13

Flat Products Sales in H1, FY13-14

Highest Sales

15% 6%

• 2%

8% 6%

• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% 14% 16% JSPL SAIL Tata JSW RINL % change 17% 13% 43% 12% 11% 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% JSPL SAIL Tata JSW JSW (Ispat) Essar % change

LONG PRODUCTS H1-FY 12-13 H-FY 13-14 % change JSPL 1018 1170 15% SAIL 1961 2072 6% Tata 1242 1212

• 2%

JSW 589 636 8% RINL 1101 1172 6% FLAT PRODUCTS H1-FY 12-13 H-FY 13-14 % change JSPL 297 347 17% SAIL 2813 3167 13% Tata 1604 2298 43% JSW 2915 3271 12% JSW (Ispat) 1264 1398 11% Essar 1869 1980 6%

Jindal Steel & Power Limited 14 616 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 (%)

The Indian power industry is forecasted to witness robust growth in the medium to long term driven by structural macro factors

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 of electricity in

the country is significantly below global average

 Even after the planned capacity

additions in the 12th Five-Year Plan, Indian average is expected to stay well- below its peers

 This structural factor would provide a

significant stimuli to the growth of the power sector in India

 Significant deficit in power supply in

India leading to huge upside potential

 Energy deficit have been closer to ~9%,

with peak deficit even higher; likely to go up further if supply doesn’t catch up with demand

 Demand growth has been regular, but

supply side growth has been curtailed due to execution hurdles

15 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

16 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

and 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 17

Power Sector – Recent Reforms

• Coal Block Auction Methodology Approved
• Ministry of New and Renewable Energy has set a target of generation of 10,000 MW of power through solar energy by

the year 2017.

• CIL to sign FSA for a total capacity of 78,000 MW including cases of tapering linkage, which are likely to be

commissioned by 31.03.2015.

• CCEA approved doubling of Gas Prices from present $4.2 mmbtu to $8.4 mmbtu w.e.f 1st April’2014
• Govt. has allowed power producers to pass the burden of costlier imported fuel to its consumers i.e. SEBs which are

already making losses and have poor financial health

• New Standard Bidding Documents (SBD) for Case-I & Case-II projects
• Generation based incentive scheme for wind power projects
• PFC has started the bidding process for 2 UMPPs in Odisha & Tamil Nadu, ending the 5 year of uncertainty.
• Amendments in Electricity Act 2003.
• Union Cabinet on 28th June ’13 gave its approval to the proposal for setting up of an independent regulatory authority

for the coal sector and also approved the introduction of the Coal Regulatory Authority Bill, 2013 in Parliament.

Jindal Steel & Power Limited 18

Key issues faced by the power sector in India

Issue

Fuel supply security Unviable long term tariff

Steps being taken to address the issue JSPL not impacted

Availability of coal from Coal India has been hindered due to environmental, operational, land acquisition and infrastructural issues

Delays in environmental clearance for coal mines

High price of imported coal – Indonesian government has restricted supply

Infrastructure bottlenecks like lack of railway rakes/wagons/railway lines continues to be a constraint

Coal imports (mm tons)

• Govt. has proposed that Coal India signs FSAs

for 80% of ACQ (Annual Contracted Quantity) for domestic coal based plants with long term PPAs

• Govt. is also considering price pooling of coal

with the supply deficit in coal from Coal India met through imported coal

• Govt. has also mooted auctioning of coal

blocks and associated power plants (on the lines of UMPPs) and has identified such blocks

 JSPL has access to

captive mine for its operational portfolio and has coal linkages for 1,200MW under construction

Availability of coal from Coal India has been hindered due to environmental, operational, land acquisition and infrastructural issues

Delays in environmental clearance for coal mines

High price of imported coal – Indonesian government has restricted supply

Infrastructure bottlenecks like lack of railway rakes/wagons/railway lines continues to be a constraint

Some relief could also be realized on the long term PPA side where tariff renegotiation on unviable PPAs could be allowed by CERC

Unviable long term PPAs has resulted in excessive cautious nature while bidding for the recent UP 6GW case-I bid

 JSPL operating

plant is sold at merchant tariff and the company aims to enter into PPA only at reasonable tariff – as evident from the recent UP 6GW case-I bid

16 22 43 87 114 152 169 FY09 FY10 FY11 FY12 FY13E FY14E FY15E

Jindal Steel & Power Limited 19

 JSPL has already

secured funding for its under construction 1,200MW and has sufficient liquidity /headroom

Key issues faced by the power sector in India (cont’d)

Issue

Scarcity of capital for IPPs Execution & regulatory issues

Steps being taken to address the issue JSPL not impacted

Banks have a high existing exposure to the sector

Companies might need to resort to raising equity in coming months

High leverage for most power companies makes fund raising more challenging

Volatile and uncertain markets pose uncertainties for power companies to raise funds 16,145 18,836 19,916 21,547 24,604 FY11 FY12 FY13E FY14E FY15E

Funding requirement for Indian power sector (US$mm)

• Govt. is taking steps to free up bank appetite for

power sector by encouraging refinancing of

• perational power projects through institutions

such as IIFCL

Positive news flow on the sector may also allow high quality issuers to raise equity capital in the near term

Land acquisition remains a key challenge

Hurdles in getting environmental clearances and regulatory approvals from the Government

Financial closure and compliance with regulations relating to foreign currency borrowings add to the execution lags

Government is taking steps to reduce the number of clearances required for setting up a power plant from the current number of 66 clearances required

National Investment Board to issue fast-track clearances for mega infra projects

Policy for captive mines allocations are expected at a faster pace for the next wave of growth

~72–84 months before actual production from captive mines can commence



 JSPL has received

all environmental and regulatory approvals



Jindal Steel & Power Limited 20

Key issues faced by the power sector in India (cont’d)

SEBs Tariff Hikes

States Period Percentag e Tamil Nadu Apr-12 37.0 Delhi Jun-12 26.0 Andhra Pradesh Dec-11 25.0 Orissa Apr-12 25.0 Rajasthan Sep-11 23.0 Jharkhand Aug-11 18.5 Chhattisgarh Apr-11 17.0 Uttar Pradesh Apr-10 13.0 Himachal Pradesh Apr-12 13.0 Bihar Mar-12 12.0 Maharashtra Dec-11 10.0 Haryana Sep-11 10.0 West Bengal Mar-12 9.0 Punjab May-11 8.4 Madhya Pradesh Mar-12 8.0 Uttarakhand Apr-12 7.0 Gujarat Jun-12 1.5 UP Oct-12 18.0

Source: SERC, Media, Karvy Institutional Research

Financial condition of SEBs Steps being taken to address the issue

 Reduced capability of

SEBs to buy power due to financial constraints

 Average 40% hike in

tariffs required to fend losses incurred till FY12

 Implementation of sixth

pay commission to put further burden on SEBs

 T&D losses and

power theft continue to be rampant

(11) (14) (16) (27) (33) FY08 FY09 FY10 FY11 FY12E  Tariff hikes by several loss-making SEBs  In Sep 2012, CCEA approved the scheme for Financial Restructuring

• f discoms

 50% of short term debt to be converted to bonds issued by discoms,

backed by State Govt. guarantee

 Remaining 50% to be re-scheduled by providing moratorium

• n principal

 Central Govt. will provide grants equivalent to energy saved by

containing AT&C losses SEB losses (US$bn)

Jindal Steel & Power Limited 21 4.2% 5.6% 7.5% 11.1% 12.7% 13.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 6.3% 7.4% 11.4% 11.9% 12.1% 14.4% 16.7% 16.9% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0%

Power deficit states (Apr’13 to Aug’13)

Source: CEA

Peak Deficit (GW)

All India Avg. 6.3%

All India Avg. 5.0%

Base Deficit (BU)

20 40 60 80 100 120 140

FY09 FY10 FY11 FY12 FY13

97 104 110 116 123 110 119 122 130 135

11.9% 12.7% 9.8% 11.1% 9.0%

200 400 600 800 1000 FY09 FY10 FY11 FY12 FY13 777 831 862 937 998 691 747 811 857 911

11% 10 % 8.5% 8.5% 8.7%

Jindal Steel & Power Limited Face of Youthful Dynamism

Jindal Steel & Power Limited 22

Jindal Steel & Power Limited 23

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) Market capitalization of US$3.67bn as on November 6, 2013.

Global Venture

• Asia
• Africa
• Australia
• Europe

Current Capacity

Capacity as on 31st March 2014

• Steel: 6.6MTPA
• Hot Briquetted

Iron: 1.5 MTPA

• Pellet Plant: 9.0

MTPA

• Operational

: 4507MW

• Iron ore: 2

MTPA

• Coal: 16

MTPA

• Asia
• Africa
• Australia
• Europe

Jindal Steel & Power Limited 24

Ownership structure

Promoter Group 59% Institutions 28% Others 13%

Shareholding pattern (as on Sep 30, 2013) Key external shareholders

Shareholder name % held HSBC Global Investment Funds 2.4 Lazard Asset Management 1.92 ICICI Prudential Life Insurance Company 1.02 Other institutions 22.66

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

Jindal Steel & Power Limited 25

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

Jindal Steel & Power Limited 26

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.

Jindal Steel & Power Limited 27

Moving towards Plural Leadership

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

Steel & Cement Segment

Jindal Steel & Power Limited 28

Jindal Steel & Power Limited 29

Overview of steel facilities

Raigarh Angul Patratu Barbil

Operational

Raipur

 Sponge Iron: 1.37MT  Steel: 3.0MT  Pig Iron: 1.67MT  Rail & Universal Beam

Mill: 0.75MT

 Plate Mill: 1.0MT  Medium & Light Section

Mill: 0.6MT

 Fabricated structures:

0.12MT

 Ferro Alloys: 36,000 T  Power: 893 MW  Cement Plant

Under implementation

 Plate Mill: 1.5MT  SMS Plant: 1.6 MT  Fabricated structures:

84,000 T

 Power: 810 MW  Sponge Iron based on Coal

Gasification: 1.8MT

 Coal Gasification Plant:

225,000Nm3/Hr

 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  Phase 2: Rebar & Section

Mill: 2 MTPA  HBI Plant: 1.6 MTPA

Jindal Steel & Power Limited 30

Product range

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

Jindal Steel & Power Limited 31

Expansions - Steel

Setting up an 3 MTPA integrated steel plant and a 1,320 MW captive power plant Setting up a 1.6 MTPA integrated steel plant and a 810 MW captive power plant

Jharkhand - India

Currently 1.6 MTPA Wire and Bar Mill operational and balance facility expected by March, 2016

Orissa - India

Currently 540 MW Power Plant is in operation out of 810 MW which will commission by March 13 and Plate Mill

Jindal Steel & Power Limited 32

Angul Expansion - Status

 Plate Mill : Shear line and UT machine commissioned  EAF hot commissioned along with LF, FES & Slab caster.  Captive Power Plant – All 6 units commissioned & synchronized.  Process Boiler – Unit 1 commissioned and Unit 2- lighted up for further activities  Lime & Dolo Plant – Both Kilns commissioned.  Commissioning of Online Hot Slab charging system from SMS to Plate Mill.

SN.

Units Current Status 1

Coal Gasification Commissioning in Dec 2013

2

Direct Reduced Iron Commissioning in Dec 2013

6

Oxygen Plant Train 2 commissioned on 19th Oct 2013 Train 1 to be commissioned by Dec 2013

7

Power Plant All Six Units commissioned and synchronized.

8

Process Boiler Unit-1 :Commissioned, Unit 2 - Ready Unit-3: Dec ‘13

SNAPSHOTS

Jindal Steel & Power Limited 33

Performance Highlights –H1 FY -13-14

STEEL

First “Main Track” Rail order from DFCC for 260 m long rails - ~90,000 MT Secured first export order for Rails – Ferrotech UK ~10,000 MT Rail welding plant commissioned and ready to weld 480 m long rails 6.6% Growth in Crude steel production over Q2 last year 17% Sales Growth (in volume) as compared to Q2 last year Export Sales Volume double in H1 compared to same period last year Entry in Pellet Exports – Over 2.5 Lakh MT pellets exported in Q2 13% reduction in Total inventory (in MT) as compared to 1 April 2013 16% growth in Retail Sales (in MT) as compared to Q1 this year National Launch of “Panther TMT bars” Brand on 5th August

34 Jindal Steel & Power Limited

Production, Sales & Export

6.3 6.8 7.9 9.7 7.2 8.0

• 5.0

10.0 15.0

Q1 Q2 Q3 Q4

Total Sales (in Lakh MT)

FY13 FY14

 6.6% growth in production over Q2 last year  4% production growth over Q1 this year  11% growth in Sales in Q2 over previous

quarter

 17% growth in Sales in Q2 over same period last

year

 32% growth in Export Sales in Q2 (vs Q2 12-13)  208% growth in Export Sales in H1 (vs H1 12-

13)

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

Production of Crude Steel (in Lakh MT)

FY 13 FY 14

19 104 123 119 138 257 50 100 150 200 250 300 Q1 Q2 TOTAL FY - 2012-13 FY - 2013-14

Export Sales

35 Jindal Steel & Power Limited

Pellet Business

3.56 3.82 2.59 3.48 3.62 3.57

• 0.50

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 April May June July August September

Production (in Lakh MT)

1.15 1.98 1.98 2.18 1.40 1.22 1.98 1.59 1.94 1.32 1.89 0.63

• 0.49

2.09

• 0.50

1.00 1.50 2.00 2.50 April May June July August September

Sales (in Lakh MT)

Raigarh Domestic Sale Export 7,418 7,501 6,925 6,500 6,500 6,712 6,314 7,080 5,500 6,000 6,500 7,000 7,500 8,000 April May June July August September

NSR of Pellets

Domestic NSR Export NSR

 Domestic NSR of Pellets started falling from

June onwards

 Domestic sales shifted to Exports as a

measure

Entry in Export Market

36 Jindal Steel & Power Limited

Inventory Status

571,462 427,731 424,304 374,217 100,000 200,000 300,000 400,000 500,000 600,000 700,000 31 Dec 12 31 March 13 30 June 13 30-Sep-13

Total Inventory (MT)

 13% Reduction in total inventory from 1st April  35% Reduction in total inventory from 1st January

37 Jindal Steel & Power Limited

JSPL’s Retail Initiative

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

• 5,000

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

Retail Sales (MT)

• 16% Growth in Retail

Sales volume over Q1

• Over 5 times growth in

Volume over Q2 last year

38 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

Power Segment

Jindal Steel & Power Limited 39

Jindal Steel & Power Limited 40

Jindal Power limited (JPL)

96.43% subsidiary of JSPL 1000 MW IPP operational in Tamnar, Chhattisgarh 2400 MW in advanced stages of completion at Tamnar

Under Implementation Projects (10,237 MW) Tamnar II (2,400 MW) Thermal Linkage Dumka (1,320 MW) Thermal Captive Mines Godda (1,320 MW) Thermal Captive Mine Hydro (6100 MW) Hydro Run Of The River

SNAPSHOTS

41 Jindal Steel & Power Limited

Performance Highlights – FY 13-14

POWER

JPL’s Revenue & PBT for Q2 increased by 17.7% and 17% respectively over Q 2 last year Signed MoU with Liberian Govn. for setting up 2x175 MW Power Project. Acquisition of Kineta Power Project 3x660 MW is under progress. Station achieved PLF of 95.1% in Q2 FY14 as compared to 85% in Q2 FY13 No. of days station operated at more than 100% PLF - 58 Days Station achieved Generation of 2099 MUs in Q2 FY14 as compared to 1878 MUs in Q2 FY13 Heat Rate of 2296 Kcal/Kwh against a target of 2304 Kcal/Kwh FSA Signing with MCL & SECL completed for 2x660 MW U-2 of 4x660 MW Synchronization achieved Station availability of DCPP achieved 80.78% in Q2 FY14 as compared to 65.50% in Q2

FY13

All 6 units of 135 MW in Angul Synchronized

Jindal Steel & Power Limited 42

Snapshot of JPL’s Performance (4x250 MW)

2043 2255 2125 2156 1878 1790 2149 2184 2099 500 1000 1500 2000 2500 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Generation (Mus)

4% increase in Realization (Q2 FY14 Vs Q2 FY13) 12% increase in Generation (Q2 FY14 Vs Q2 FY13)

Mines & Minerals

Jindal Steel & Power Limited 43

44 Jindal Steel & Power Limited

44

Mine State Geological Reserve (Mn MT) Purpose

Domestic Iron Ore Tensa Orissa 20 Steel Jiraldaburu Jharkand 80 Steel Bailadila Chhattisgarh 100 Steel

Domestic Coal

Gare IV / 1 & IV/6 Chhattisgarh 300 Steel & Power Gare IV / 2 & 3 (JPL) Chhattisgarh 270 Power Jitpur & Amarkonda Jharkand 305 Power Utkal B 1 Orissa 224 Steel & Power Urtan North M.P. 55 Steel & Power Ramchandi (CTL) Orissa 1500 Coal to Liquid & Power

Overseas Coal

South Africa 50 Mozambique 724 Indonesia 250 Botswana 3000

Mines & Minerals Overview

45 Jindal Steel & Power Limited

Mines & Minerals Performance Highlights

Utkal B – 1: Boundary survey by DGPS by ORSAC completed Gare IV / 6: Public Hearing successfully completed in September Urtan North: 12 Hectare land acquired for infrastructure

Global Ventures Segment

Jindal Steel & Power Limited 46

Jindal Steel & Power Limited 47

Summary of international operations

which will be supplied by its own limestone mines (reserves of over 1 billion tonnes)

Madagascar, Africa

greenfield exploration assets in Indonesia

kilometre in Central Kalimantan till Mar’18

hard coking and low ash – low sulphur thermal coal for open-cast operation

• f captive coal terminal for coal handling

and barge loading at Barito River

Indonesia, Asia

with potential of exploring coking/PCI and thermal coal

has a capacity of handling 5 million tonnes of coal

Richfield Ltd (RCI). RCI has three advanced coal exploration projects with more than 750 MT of coal resources

Australia

rich Moatize region

coking coal

Tete region. Feasibility studies underway

Mozambique, Africa

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

exploration and development is in progress

South Africa, Africa

(Shadeed), which has installed a 1.5 MTPA steel plant with an investment of US$ 525 million and commenced production in January 2011

the first integrated steel plant in the Sultanate of Oman

Phase 1: 2 MTPA Steel Making Product (Billet)

Phase 2: 2 MTPA Rebar and Section Mills

Shadeed, Oman

Coal assets Steel production Cement production

USD

MT (high grade thermal coal)

Botswana, Africa

Jindal Steel & Power Limited 48

Oman, Middle East

Design and Capacity

• Furnace Type: MIDREX
• Capacity: 1.6 Million Tons Per Year

HDRI and HBI

• Phase 1: 2 MTPA Steel Making Product

(Billet)

• Phase 2: 2 MTPA Rebar and Section

Mills In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC (Shadeed), a company incorporated under the laws of the Sultanate of Oman Shadeed has 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 SNAPSHOTS

Jindal Steel & Power Limited 49

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

Jindal Steel & Power Limited 50

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

Jindal Steel & Power Limited 51

• 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 of AUD 156 Mn for 53.69% stake

Gujarat NRE Coking Coal Limited

Jindal Steel & Power Limited 52

Mozambique, Africa

Potential Resource: 2 Billion MT Grade: Semi Hard coking coal , High GradeThermal Coal Current Mining @ 1.5 MTPA run rate By March 31, 2014 Mining @3 MTPA run rate 3 MTPA Coal Washery commissioned

Jindal Steel & Power Limited 53

Performance Highlights – FY 13-14

GLOBAL VENTURES – OMAN

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)

GLOBAL VENTURES - MOZAMBIQUE

724, 961 MT ROM Production in H1 13-14 150,632 MT coking coal production in H1 13-14 (67,119 in Q2 13-14) 127,332 MT sales achieved in H1 13-14 (96,661 MT sold in Q2 13-14) Production to reach 3 MTPA run rate by Mar 31, 2014

Financial Profile

Jindal Steel & Power Limited 54

Jindal Steel & Power Limited 55

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

Jindal Steel & Power Limited 56

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%

Jindal Steel & Power Limited 57

Conservative leverage profile

3.1x 1.4x 1.6x 2.2x 2.5x 3.7x FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13

Debt/EBITDA

26% 52% 55% 37% 33% 19% FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13

Cash Profit/Debt Debt/Capital

64% 53% 45% 49% 48% 53% FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13E

EBITDA/Interest

8.1x 10.1x 13.0x 17.6x 12.7x 8.0x FY Mar'08 FY Mar'09 FY Mar'10 FY Mar'11 FY Mar'12 FY Mar'13

Jindal Steel & Power Limited 58

Consolidated Financials at a Glance

(USD in Million) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 H1 FY 14 INCOME STATEMENT PAT 49 82 91 112 199 479 579 606 637 464 151 Revenue 203 362 417 565 882 1,738 1,776 2,102 2,923 3,155 1,517 Cash Profit 69 122 137 186 288 668 758 815 888 732 292 EBITDA 82 145 165 227 359 941 833 1,019 1,105 1,062 446 BALANCE SHEET Gross Block 313 458 828 1,384 1,701 2,378 3,363 4,670 5,703 7,314 8,112 Net Worth 136 210 302 405 609 1,118 1,655 2,244 2,856 3,369 3,751 Borrowings 163 238 437 559 1,114 1,292 1,371 2,228 2,717 3,921 4,872 Equity 2.39 2.39 2.39 2.39 2.39 2.39 14.81 14.81 14.88 14.89 14.89 SIGNIFICANT RATIOS Operating Margin (%) 40% 40% 39% 40% 41% 54% 47% 48% 38% 34% 29% Net Profit to Sales (%) 24% 23% 22% 20% 23% 28% 33% 29% 22% 15% 10% Return on Net Worth (%) 36% 39% 31% 28% 34% 43% 35% 27% 22% 14% 40% Long Term Debt Equity Ratio 1.09 1.11 1.20 1.07 1.74 1.03 0.59 0.70 0.61 0.77 0.89 EPS (USD/Share) (a) (b) 0.05 0.09 0.10 0.12 0.22 0.52 0.62 0.65 0.68 0.50 0.16

Note: Exchange rate USD/INR 62.77 for all years

59 Jindal Steel & Power Limited

Growth Trajectory: Quarterly net profits

35 trailing quarters (consolidated, USD million)

24 23 20 24 24 25 30 32 40 44 51 64 71 122 143 143 157 129 139 153 152 142 152 159 149 154 162 185 153 144 139 120 80 72

Note: Exchange rate USD/INR 62.77 for all years

60 Jindal Steel & Power Limited

Standalone Financials – Quarter II

(in USD Million) For the Quarter ending % Particulars 30.09.2013 30.06.2013 30.09.2012 Y ON Y Q ON Q Turnover-Total

582 546 572 1.86% 6.73%

• Export

148 106 73 103.57% 40.45%

EBITDA

158 136 202

PBT

56 51 134

• 58.20%

10.40%

Profit after Tax

41 38 93

• 55.91%

7.46%

Cash Profit

93 88 144

• 35.71%

4.71%

CAPEX

250 196 195

Ratio (%) 2013 2012 Q2 Q1 Q2 Annual Raw Material to turnover

32.1 34.7 28.9 33

EBITDA to turnover

27.1 24.9 35.3 31

Profit after tax to turnover

7.0 7.0 16.2 10

Debt Equity Ratio

1.7 1.6 1.5 2

Current Ratio

0.9 1.0 0.9 1

Interest Service Coverage Ratio

2.2 2.4 4.6 4

Debt Service Coverage Ratio

1.4 1.8 1.3 2

Finished goods holding period (days)

29 36 48 35 USD 184 mn USD 217 mn USD 295 mn USD 230 mn

Debtors Realization Period (days)

50 36 41 35 USD 321 mn USD 216 mn USD 208 mn USD 227 mn

Note: Exchange rate USD/INR 62.77 for all years

61 Jindal Steel & Power Limited

Consolidated Financials – Quarter II

(In USD Million) For the Quarter ending % Particulars 30.09.2013 30.06.2013 30.09.2012 Y ON Y Q ON Q Turnover-Total 794 723 742 7.1% 9.8% EBITDA 230 216 283 PBT 100 107 199

• 49.7%
• 6.3%

Profit after Tax 72 80 144

• 49.6%
• 9.2%

Cash Profit 145 148 213

• 32.3%
• 2.3%

CAPEX 569 409 473 Ratio 2013 2012 Q2 Q1 Q2 Annual Raw Material to Turnover (%) 30.7 30.7 27.8 31.0 EBITDA to turnover (%) 28.9 29.9 38.1 34.4 Profit after tax to turnover (%) 9.1 11.0 19.4 14.7 Debt Equity Ratio 1.3 1.3 1.0 1.2 Current Ratio 0.8 1.0 0.9 0.9 Interest Service Coverage Ratio 3.0 3.4 7.7 6.1 Debt Service Coverage Ratio 2.0 3.0 2.0 2.4

Note: Exchange rate USD/INR 62.77 for all years

Jindal Steel & Power Limited 62

Name

Debt/EBITD A Net Debt to EBITDA Debt/Cap Curr Ratio Sales Growth EBITDA to Net Sales ROA ROE JINDAL STEEL & POWER LTD 4.02 3.99 53% 0.85 8.78 30.91 5.70 14.79 TATA STEEL LTD 5.42 4.61 66% (0.35) 9.15 STEEL AUTHORITY OF INDIA 4.43 3.60 35% 1.23 (3.37) 11.28 2.82 5.69 JSW STEEL LTD 3.33 3.05 55% 0.64 11.18 17.06 1.72 5.58 BHUSHAN STEEL LTD 8.60 8.55 75% 1.06 3.21 32.28 2.35 10.79 HYUNDAI STEEL CO 6.48 5.82 51% 0.90 (7.41) 11.25 3.56 8.41 KOBE STEEL LTD 7.08 6.22 62% 1.06 (8.61) 7.00 1.09 4.69 CHINA STEEL CORP 5.23 4.75 44% 0.84 (13.80) 9.87 1.95 4.53 NIPPON STEEL & SUMITOMO META 6.30 6.04 45% 1.11 15.99 7.17 0.44 1.25 POSCO 4.02 2.98 37% 1.60 (8.95) 13.10 3.12 6.33

Peer comparison with rated steel/ metal companies

Jindal Steel & Power Limited 63

Way Forward

64 Jindal Steel & Power Limited

Going Forward: Prime Focus

Commission On-going Projects Entire Angul Phase – 1 project by January 31, 14 Oman 2 MTPA by Jan 31, 2014 Pellet Plant II by Feb, 2014 Increase NSR to Rs. 37,500 / MT Stabilize production from SMS and Plate Mill in Angul Angul: Produce 4 lakh MT from SMS & 3.8 lakh MT from Plate Mill in FY 13- 14 Target “Break - Even” performance in Mozamqiue by April, 2014 Commission three units of 600 MW at Tamnar by March 31, 2014 To Turn around 4x135MW DCPP by March 31,2014 and 6x135 MW by

September 2014

 Commission Billet Caster in Angul by Aug 31, 2014 Sell 7 lakh MT of Steel in Exports Develop Pellet export market to enable export of 2 Mn T during 2014

65 Jindal Steel & Power Limited

New Initiatives

Business Restructured in focussed Business Segments & Business Units Implementation of Strategic & Operational Governance Structure Launch of Channel Sales for TMT Launch of Panther Brand to create a new identity in a cluttered market Launch of Channel financing Entry in Pellet Exports Expanding Geographical reach of Steel sales – New offices setup in South Africa,

Dubai, Indonesia

Entry in new segments with Angul Plate Mill eg 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 67

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

68 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 69

Award and Accolades

2012

– Golden Peacock National CSR Award 2012

2011

– Ranked No.1 as Wealth Creator in India over a 10- year period (Business World) – Awarded the Dun & Bradstreet- Rolta Corporate Awards 2011 – Ranked 3rd in the Metals Category of Business World’s India’s Most Respected Companies Survey – Received the Forbes Asia’s ‘Fabulous 50’ International Award – Golden Peacock Innovation Management Awards – Greentech Award for 1st Position in Metal & Mining Industries – World HRD Congress CSR Award on women empowerment

2010

– Rated the World’s 2nd Largest Value Creator by Boston Consulting Group (BCG), based on Total Shareholder Return from 2005-2009, and the largest Value Creator in Mining and Materials category – Received the Forbes Asia’s ‘Fabulous 50’ International Award – Golden Peacock Innovation Management Awards – CSR Excellence Award 2010 by ASSOCHAM for promoting and propagating Corporate Social Responsibility initiatives

2009

– Received the CNBC’s Most Promising Entrant into the Big League at IBLA – National Energy Conservation Award – Golden Peacock Innovation Award 2009 – Winner of ‘Shrishti Green Cube Award 2009 – SAIL HR Excellence Award 2009

70 Jindal Steel & Power Limited

THANK YOU

www.jindalsteelpower.com

Jindal Steel & Power Limited 71

Backup slides

Jindal Steel & Power Limited 72

Global Economic Outlook: Long term growth prospects of India robust…

Jindal Steel & Power Limited 73

Steel companies with larger exposure to long products to benefit from continued deficit in longs

India – Flat Steel: Some surplus in F14e and F15e and then into deficit again; Long Steel – Shortage getting more acute

MT

Longs to have higher demand growth

• There has been a strong long steel products

demand due to its heavy usage in construction and infrastructure

• Supply growth for longs will likely lag behind

demand growth, as majority of new capacities being added by the steel players are for flat products

• Over next two years long prices are expected

to display better trends than flat prices

• Additional factors contributing to longs deficit:
• Higher capital outlays required & longer

drawn out projects for flats implying higher commitment for flat projects

• Raw materials shortage hurts long

producers more than flat producers

• Resulting in small steel makers closing

long capacities, due to sustainably increased costs of production owing to increased costs for iron ore and thermal coal

• Few large steel makers are adding long

capacities

Jindal Steel & Power Limited 74

Our Philosophy

To be a globally admired

• rganisation that enhances

the quality of life of all stakeholders through sustainable industrial and business development We aspire to achieve business excellence through:

Vision Mission

Passion for People Business Excellence Integrity, Ownership & Sense

• f Belonging

Sustainable Development

Core Values

The spirit of entrepreneurship and innovation Optimum utilization of resources Sustainable environment friendly procedures and practices The highest ethics and standards Hiring, developing and retaining the best people Maximising returns to stakeholders Positive impact on the communities we touch

JSPL integration

Sale

Iron Ore from Mines Coal from Mines Coal Washery BF Coking Coal Pig Iron POWER PLANT(a)

CSEB/OTHERS

EAF

RAIL & UNIVERSAL BEAM MILL

ROTARY KILNS Rails Structurals Washery Rejects

Sponge Iron

Rounds/ Blooms/ Slabs/ Billets Sale Sale Sale Sale Sale

SINTER PLANT

Sale PLATE MILL

PLATES & COILS

Sinter

COKE OVEN

COKE Sale

Wire Rod & Rebar

Pellets Sale Pelletization plant

Jindal Steel & Power Limited 76

Fully integrated operations with strong resource base

Steel business Facility Capacity Status Iron Coal Required Captive prod. Required Captive prod. Raigarh 3.0MT Operational 5.40MT 2.00 MT 6.00MT 6.00MT Angul 1.6MT Under implementation 3.00MT NIL 5.50MT 5.50MT Oman 2.0MT Under implementation 3.72MT NIL NA NA Power business Facility Capacity Status Iron Ore Coal Required Captive prod. Required Captive prod. Tamnar – I 1,000 MW Operational NA NA 5.2MT 6.0MT Tamnar – II (Phase I) 1,200 MW Under implementation NA NA 6.4MT Linkage Tamnar – II (Phase II) 1,200 MW Under implementation NA NA 6.4MT NIL

Strong backward integration for key metals

Historically added value by buying / acquiring mines and building assets that are funded out of internal accruals Coal mines acquired half a decade ago are now ripe for production, driving an 8x increase in operating coal assets Diversification in mining operations across various geographies (both domestic and overseas) is likely to bring down the company’s dependence on any single mine

Iron ore reserves likely to rise to 1.2bn tonnes (60x) over the next five years Non-coking coal assets in operation likely to rise by 8x over next three years

Snapshots – SMS & Slab caster (Angul)

77 RU - 30 October 2013 V2

Snapshots – SMS & Slab caster (Angul)

78 RU - 30 October 2013 V2

Snapshots – SMS & Slab caster (Angul)

79 RU - 30 October 2013 V2

Snapshots – Hot Leveller, Plate Mill

80 RU - 30 October 2013 V2

Snapshots – LDP (Angul)

81 RU - 30 October 2013 V2

Snapshots – CGP (Angul)

82 RU - 30 October 2013 V2

Snapshots – CGP (Angul)

83 RU - 30 October 2013 V2

Snapshots – CGP (Angul)

84 RU - 30 October 2013 V2

Jindal Steel & Power Limited 85

DRI – Angul (Orissa)

BACK

Cut to Length line -Raigarh

86 RU - 30 October 2013 V2

Jindal Steel & Power Limited 87

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

Jindal Steel & Power Limited 88

JPL – 2400 MW Panoramic View

Jindal Steel & Power Limited 89

JPL – 2400 MW NDCT

Jindal Steel & Power Limited 90

JPL – 2400 MW Boiler Unit 2

BACK

Jindal Shadeed – DRI plant

91 RU - 30 October 2013 V2

Jindal Shadeed - EAF

92 RU - 30 October 2013 V2

Jindal Shadeed – Fume Treatment Plant

93 RU - 30 October 2013 V2

Jindal Shadeed – Continuous Caster

94 RU - 30 October 2013 V2

BACK

95 RU - 30 October 2013 V2

Financial Snapshot

96 RU - 30 October 2013 V2

Financial Snapshot

Making sustainability a focused priority

Jindal Steel & Power Limited 98

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

99 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 100

Award and Accolades

2012

– Golden Peacock National CSR Award 2012

2011

– Ranked No.1 as Wealth Creator in India over a 10- year period (Business World) – Awarded the Dun & Bradstreet- Rolta Corporate Awards 2011 – Ranked 3rd in the Metals Category of Business World’s India’s Most Respected Companies Survey – Received the Forbes Asia’s ‘Fabulous 50’ International Award – Golden Peacock Innovation Management Awards – Greentech Award for 1st Position in Metal & Mining Industries – World HRD Congress CSR Award on women empowerment

2010

– Rated the World’s 2nd Largest Value Creator by Boston Consulting Group (BCG), based on Total Shareholder Return from 2005-2009, and the largest Value Creator in Mining and Materials category – Received the Forbes Asia’s ‘Fabulous 50’ International Award – Golden Peacock Innovation Management Awards – CSR Excellence Award 2010 by ASSOCHAM for promoting and propagating Corporate Social Responsibility initiatives

2009

– Received the CNBC’s Most Promising Entrant into the Big League at IBLA – National Energy Conservation Award – Golden Peacock Innovation Award 2009 – Winner of ‘Shrishti Green Cube Award 2009 – SAIL HR Excellence Award 2009