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Analyst Meeting Q2/ 20 10 Q / July 29, 20 10 3 : 1 3 : 1 Win Viriyaprapaikit President Nitiphong Tejavanija CFO Disclaim er Disclaim er The information contained in this presentation is intended solely for your personal

  1. Analyst Meeting Q2/ 20 10 Q / July 29, 20 10 3 : 1 3 : 1 Win Viriyaprapaikit President Nitiphong Tejavanija CFO

  2. Disclaim er Disclaim er The information contained in this presentation is intended solely for your personal reference only. If you are not an intended recipient, you must not read, disclose, copy, circulate , retain, distribute only. If you are not an intended recipient, you must not read, disclose, copy, circulate , retain, distribute or take any action in reliance upon this material. This presentation is not intended to substitute your own analysis and investigation, and should not be considered a recommendation to any recipient of this presentation. Some statements contained b id d d i i i f hi i i d herein are forward-looking statements identified by the use of forward- looking terminology such as “may” , “will” , “expect” , “anticipate”, “intend” , “estimate” , “continue”, “plan” or other similar words, which are subject to various risks and uncertainties. These statements include statements with respect which are subject to various risks and uncertainties These statements include statements with respect to the Company’s corporate plans, strategies and beliefs and other statements that are not historical facts. This presentation is prepared based on the assumptions and beliefs of Sahaviriya Steel Industries Public Company Limited (the “Company” or “SSI”)’s management in light of the information currently available to the Company involving risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results performance or achievements to be materially different from any future results, performance or performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or shall be relied on as promise or representation of the Company as to the future. Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 2

  3. AGENDA AGENDA • Perform ance Highlights • Perform ance Highlights • Operating Results • Operating Results • Outlook & Strategies • Outlook & Strategies Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 3

  4. Hitting operating profit target, despite softer sales volum e due to m arket correction p Grow sales Grow sales Reduce Cost Reduce Cost Integration Integration Prem ium Value Prem ium Value • Softer sales volume • Softer sales volume • 250 mb cost reduction • 250 mb cost reduction • Reap further synergy • Reap further synergy • Maximize Premium • Maximize Premium S f S f l l l l b b d d i i R R f f h h M M i i i i P P i i resulting in higher slab resulting in higher slab target for 2010 target for 2010 with TCRSS with TCRSS Value Products (high- Value Products (high- CTION CTION inventory inventory grade & unique ) grade & unique ) • Soften production • Soften production • Develop new businesses • Develop new businesses ONTINUAL AC ONTINUAL AC • Focus on sales • Focus on sales • Focus on sales • Focus on sales • Invest in technology, • Invest in technology, • Invest in technology • Invest in technology volume resulting in volume resulting in volume, resulting in volume, resulting in at two subsidiaries, at two subsidiaries at two subsidiaries at two subsidiaries, expansion of Premium expansion of Premium higher conversion cost higher conversion cost shifting from “Cost shifting from “Cost people and R&D to people and R&D to Value Products Value Products center” to “Profit center” center” to “Profit center” develop future high- develop future high- grade products grade products CO CO • Sold 545k tons in Q2/ 10 • Sold 545k tons in Q2/ 10 • Cost-saving of 110 mb in • Cost-saving of 110 mb in • Sold 92k tons to TCR in • Sold 92k tons to TCR in • Sold Premium Value • Sold Premium Value Sold 545k tons in Q2/ 10, Sold 545k tons in Q2/ 10, Cost saving of 110 mb in Cost saving of 110 mb in Sold 92k tons to TCR in Sold 92k tons to TCR in Sold Premium Value Sold Premium Value 1H10 1H10 -21% q-o-q -21% q-o-q Q2 (-12% q-o-q) Q2 (-12% q-o-q) Products 232k tons in Q2, Products 232k tons in Q2, RESULT RESULT (43% of total sales volume) (43% of total sales volume) • Productivity rate down • Productivity rate down • Domestic market share is • Domestic market share is • Profit contribution from • Profit contribution from q-o-q to 376 ton/ hr from q-o-q to 376 ton/ hr from • Achieved 24% rolling • Achieved 24% rolling estimated at 39%, estimated at 39%, TCR 69.3 mb, WCE 10.8 TCR 69.3 mb, WCE 10.8 429 ton/ hr in Q1/ 10 but 429 ton/ hr in Q1/ 10 but mb and PPC 22 4 mb mb and PPC 22 4 mb mb, and PPC 22.4 mb mb, and PPC 22.4 mb margin margin margin margin rose y-o-y from 348 ton/ hr rose y-o-y from 348 ton/ hr rose y o y from 348 ton/ hr rose y o y from 348 ton/ hr Q2 / 2010 R Q2 / 2010 R • Exported 19 k tons, -71% • Exported 19 k tons, -71% in Q2/ 09 in Q2/ 09 • 4 new products in 2Q10 • 4 new products in 2Q10 q-o-q q-o-q • Yield loss dropped to 1.5% • Yield loss dropped to 1.5% • Additional inventory • Additional inventory from 1.7% in Q2/ 09 and from 1.7% in Q2/ 09 and • 13 new products and • 13 new products and Q1/ 10 Q1/ 10 provision 544 mb provision 544 mb Q 3 domestic customers in 3 domestic customers in 3 domestic customers in 3 domestic customers in • Conversion cost rise q-o-q to • Conversion cost rise q-o-q to 1H10 1H10 USD68/ ton from USD USD68/ ton from USD 59/ ton in Q1/ 10 59/ ton in Q1/ 10 Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 4

  5. Softer volum e of 544,761 tons, With slightly lower sales of Prem ium Value Products g y Sales Volume by product category (unit : million tonne) 0.68 30% 0.54 0.49 0.48 Premium High ‐ grade g g 0 43 0.43 31% 31% Value 14% 29% 28% 20% Products 0.35 Unique 12% 10% 14% 13% 17% 19% 19% Commodity 56% product 57% 66% 59% 54% 71% 1Q09 1Q09 2Q09 2Q09 3Q09 3Q09 4Q09 4Q09 1Q10 1Q10 2Q10 2Q10 Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 5

  6. Continue developm ent on Prem ium Value Continue developm ent on Prem ium Value Products from Q Products from Q1 oducts oducts o o Q Q Industry / Production Application Handlebar part for motorcycle Handlebar part for motorcycle European Standards (EN Standards) European Standards (EN Standards) New Products Gear part for motorcycle Gear part for motorcycle Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 6

  7. Sm aller dom estic m arket share due to higher im port volum e, a d ess e po t o u and less export volum e due to the softening prices e due to t e so te g p ces Dom estic Market Shares Export Volum e Domestic Market Share in 2007 ‐ 2010 Export Volume (tonne) 63,806 63,806 60% 60% 50% 51,786 48,698 48,478 40% 30% 20% 20% 10% 25,274 0% 18,644 2008 2009 1Q10 2Q10e SSI 19% 34% 45% 39% Other local supplies 29% 24% 16% 20% Import 52% 42% 39% 41% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 S Source : ISIT, SSI’s estimates ISIT SSI’ i Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 7

  8. Sold less quantity, with higher raw m aterial inventory Mil. tonne Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 8

  9. Lower production volum e, with higher conversion cost Conversion cost ($/tonne) and Yield loss 1.7% 1.7% 1.7% 1.5% 1.6% 100 1.80% 1.5% 1.60% 80 69 69 69 68 1.40% 60 59 1.20% 56 53 52 60 50 47 1.00% 43 0.80% 40 0.60% 0.40% 20 0.20% 0 0.00% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Real Normalized Yield loss Monthly Production Volume ('ooo tonne) Monthly Conversion Cost ($/tonne) 120 1Q10 300 100 2Q10 2010 average = 206 2009 2010 average = 62 250 2Q10 80 2009 average = 65 200 60 60 2009 2009 150 100 40 1Q10 2009 average = 156 50 shutdown 20 0 shutdown 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec p y g p Jan Feb Mar Apr May Jun J F b M A M J J l A Jul Aug Sep Oct Nov Dec S O t N D Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 9

  10. Internal stretched target of Bt. 250 m illion cost saving in 20 10 g 2009 2010 1H10 Actual Target Actual Non- Non- Non- Permanent Permanent Permanent permanent permanent permanent Cost killer 26 57 40 5 10 Cost reduction 118 97 85 17 improvement 77 Energy saving 25 4 Outsource & 2 Zero OT Workforce 9 Admin 45 Non-direct cost -8 cutting Maintenance 100 20 53 cost 25 84 193 230 250 110 423 Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 10

  11. Prudently provisioning on inventory value while the m arket is bottom ing out g Million Baht Coil Inventories 152 324 Slabs on hand and in transit 68 Slabs ordered Total 544 Sahaviriya Steel Industries PLC, 2Q10 Analyst Meeting 11

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