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

Investor Presentation February, 2014 Jindal Steel & Power Limited 1

Steel and Power Industry - An Overview Jindal Steel & Power Limited 2

Global Steel Industry . Global Steel Production (Mt) Jan-Dec '13 Jan - Dec '12 1582 1529 1059 999 779 725 For Jan to Sep, 2013 169 166 109 122 111 119 81 77 26 24 World Asia China India EU CIS North America Middle East China Leading the way – India following Jindal Steel & Power Limited 3

Raw Material Prices - In India International Market • Pellet prices static Pellet 65.5, FOB-Brazil Fine 63.5, CFR-China HCC LV, FOB-Aus 170 • Fines and Lumps 160 marginally decline 150 US$/MT - Sep, 13 140 130 120 110 100 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Current Domestic Market • Pellet prices firmed up - Aug, 2013. Pellet 63.5 Lump 65 Lump 63 8000 • Lumps prices increased 7500 -Aug, 2013 7000 Rs/MT 6500 6000 5500 5000 Jindal Steel & Power Limited 4

Finished Product – International Price Trend International Price Trend (USD/MT) 650 600 HRC Export FOB-Black Sea 550 HRC Export FOB-China TMT Export FOB Black Sea TMT Export FOB China 500 Indian Price Trend Billet Export FOB Black Sea Wire Rod -FOB China 450 400 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest 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 Jindal Steel & Power Limited 5

Finished Product - Price trend - India Domestic Price Movement 40000 HR Coil Ex Works- Basic Rs/MT TMT- Raipur Basic Rs/MT 35000 Billet 125-Raipur, Basic Rs/MT Sponge Iron, Raipur Basic Rs/MT 30000 Pellet 63.5 FOR Barbil Lump 63- FOR Barbil 25000 Fines 63 FOR Barbil 20000 Oct – Jan 14: Price movement: 15000 Indian Price Trend  3% increase in HR Coil  7% increase in TMT 10000  8% increase in Pellet  5% increse in Lump 5000  12% increse in Fines 0 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Latest Price Realisation is higher in India compared to International price. Source: BI - JSPL Jindal Steel & Power Limited 6

Indian Steel Industry - Exports Rise Finished Steel : April - Dec '13 Qty (mt) % Change* 59.332 1.8 Crude Steel Production 4.099 (29.20) Import (finished Steel) 4.136 9.5 Export (finished steel) 53.789 0.5 Real Consumptionn Indian Price Trend * over same period of last year • India - Net Exporter in Dec 2013. • Imports shows negative growth. • Real consumption of finished steel marginally up. Source: BI - JSPL Jindal Steel & Power Limited 7

POWER INDUSTRY Jindal Steel & Power Limited 8

Indian Per Capita consumption and Power Deficit  Per capita consumption 2011 Annual per capita energy consumption (kWh) consumption of power 13,394 of electricity is significantly below Per capita 10,177 global average 6,452 5,736 2,944 2,384 616 US Australia Russia UK China Brazil India  Significant deficit in Energy demand (bn kWh) Energy deficit (%) industry growth rate 1,600 12% Power generation power supply - leading 1,403 1,400 to huge upside 1,200 8% 937 1,000 862 831 potential 777 739 800 600 4% 400 200 0 0% FY08 FY09 FY10 FY11 FY12 FY17E Source: Company filings, World Bank, Global Insight Jindal Steel & Power Limited 9

Installed Capacity as on 31 st Dec, 2013 233,930 250,000 13% 200,000 159,794 17% 150,000 59% 100,000 9% 2% 39,893 29,463 50,000 1% 4,780 - Coal Gas Diesel Nuclear Hydro RES Indian Price Trend 250 234 223 200 29,463 200 174 39,893 159 148 150 138,213 20,381 4,780 100 1,200 50 0 Coal Gas Diesel Nuclear Hydro RES FY09 FY10 FY11 FY12 FY13 Q3FY14 Source: CEA Jindal Steel & Power Limited 10

Growth in Thermal Capacity vs PLF% 180 80.00% 77.20% 77.50% 160 75.07% 152 160 73.32% 75.00% 140 132 112 120 70.00% 102 94 100 69.95% 65.00% 80 64.62% Indian Price Trend 60 60.00% 40 55.00% 20 0 50.00% FY09 FY10 FY11 FY12 FY13 Dec'13 Inst.Cap (in GW) PLF (in %age) Source: CEA Jindal Steel & Power Limited 11

Large capacity addition targets to meet the demand growth By fuel type 30,000 318,414 5,300 3,060 10,897 69,280 199,877 MW Capacity at the end of Coal Hydro Lignite/Gas/LNG Nuclear Renewables Capacity at the end of XIth plan XIIth plan (31-Mar-12) (31-Mar-17) By sector 30,000 318,414 15,530 26,182 46,825 199,877 MW Capacity at the end of XIth plan Private Central State Renewables (a) Capacity at the end of XIIth plan (31-Mar-12) (31-Mar-17) (a) Break up of renewables not available Source: Planning commission Jindal Steel & Power Limited 12

Year-Wise Target vs Achievement for 12 th Plan 28887 Total 88536 2016-17 14950 2015-16 18820 Indian Price Trend 2014-15 20408 8264 2013-14 16402 20623 2012-13 17956 0 20000 40000 60000 80000 100000 Ach Tar Source: CEA Jindal Steel & Power Limited 13

Robust plan to address transmission bottleneck XII plan targets Transmission lines 35,000 364,921 38,000 27,000 7,440 257,481 CKM XI Plan: 12,130MW XII Plan: 17,930MW XI Plan: 4,220MW XII Plan: 14,420MW At the end of HVDC 765 KV 400 KV 220 KV At the end XIth plan Bipole lines of XIIth plan (31-Mar-12) (31-Mar-17) XI Plan: 1,260MW XII Plan: 2,860MW XI Plan: 4,390MW Sub-station XII Plan: 12,790MW 76,000 669,801 XI Plan: 3,630MW XI Plan: 1,520MW 45,000 XII Plan: 3,630MW XII Plan: 7,920MW 149,000 399,801 MVA Northern Region Western Region Eastern Region Southern Region At the end of 765 KV 400 KV 230/200 KV At the end of North-Eastern Region XIth plan XIIth plan (31-Mar-12) (31-Mar-17) Source: Planning commission Jindal Steel & Power Limited 14

Jindal Steel & Power Limited - Face of Youthful Dynamism Jindal Steel & Power Limited 15

Ownership structure Founded in 1952 US$18bn conglomerate O P Jindal Group Multi-national and multi-product steel conglomerate with business interests spanning across mining, power, industrial gases, ports and petroleum Jindal Saw JSL Limited JSW Steel/ JSW Energy Jindal Steel & Power Mr. P.R. Jindal Mr. Ratan Jindal Mr. Sajjan Jindal Mr. Naveen Jindal Key external shareholders Shareholding pattern (as on Dec 31, 2013) Shareholder name % held HSBC Global Investment Funds 2.45 Others 13% Morgan Stanley Asia (Singapore) PTE 2.20 Institution s Lazard Asset Management LLC 1.91 Promoter 27% Group 60% Other institutions 20.11 Source: NSE Jindal Steel & Power Limited 16

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. Anand Goel – Chief Advisor Mr. K Raja Gopal – Director & Group CFO  >36 years of experience with the O.P. Jindal Group  Over 31 years of experience out of which about 21 years has been with ABB  Master's Degree in Business Administration from BITS, Pilani  Chartered Account from the Institute of Chartered Accountants  Member of the National Steel & National Mining committees of of India FICCI and National Mining Committee of CII Jindal Steel & Power Limited 17