Jindal Steel and Power Ltd

Investor Presentation

May, 2015

Aerial View of Raigarh Plant Copyright @ 2015 Jindal Steel & Power Limited 2 Ownership Structure - O P Jindal Group

O P Jindal Group

Jindal Saw JSL Limited JSW Steel/JSW Energy Jindal Steel & Power (JSPL) Mr. P.R. Jindal Mr. Ratan Jindal Mr. Sajjan Jindal Mr. Naveen Jindal

Mr. Naveen Jindal – Chairman • 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 • Conferred with the Ernst and Young Entrepreneur of the Year Award 2010 in the field of Energy and Infrastructure • 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

Mr. Ravi Uppal – Managing Director & Group CEO • Over 36 years of experience in engineering and infrastructure • Previously whole-time Director and President & CEO – Power at Larsen & Toubro Group. Also held senior positions at ABB and Volvo India. • Advanced MBA from Wharton, MBA from IIM Ahmedabad, and B.Tech. from IIT Delhi

Mr. Anand Goel – Chief Advisor • Over 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

Mr. Rajesh Bhatia – CEO Global Ventures • Over 25 years of experience in the field of Finance, Accounts, Taxation, Administration, Commercial and Business Development.

• Played an important role in JSPL's overseas acquisitions in Australia, Indonesia, South Africa, Mozambique, Madagascar, Mongolia & Oman, apart from arranging financing from domestic and international lenders for various projects.

Mr. Rajeev Bhadauria – Director Group HR • More than 28 years as an HR professional across Public and Private sectors

• Previously President HR – Reliance ADA Group and Regional HR head – NTPC

• Post Graduate in Industrial Relations from the Power Management Institute, NTPC and LLB from Allahabad University

Mr. V K Mehta – ED Marketing • 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.

Strategic Governance Structure Operational Governance Structure

ManCo UniCo Business Segments For each For each Business Location

Core Group Management Executive Team Committee Steel & Cement

Power

Senior Management Committee Mines & Minerals

Global Ventures

Implementation of Strategic & Operational Governance Structure

Steel & Mines & Power Global Construction Cement Minerals Ventures Material & Solution

Current Capacities – Domestic & Global

2 MTPA Steel Cement/ 5085 MW 5.75 MTPA Steel* 3.11 MTPA* 6.20 MTPA- Road solutions/ * Domestic Mining LGS*** ** Includes 600 MW - synchronized & will be commissioned in FY16 *** Light Gauge Steel

Raigarh Angul Barbil Patratu Oman JPL Mining

BF 1.67 MTPA CGP 225,000 Nm3/Hr WRM HBI 1.5 Iron Ore DRI 1.32 MTPA 0.60 MTPA Tamnar 3.11 CapacityDRI 1.8 in MTPA MTPA 2800 MTPA SMS 3.25MTPA deail Pellet MW Plate Mill 1.00 SMS 2.5 MTPA* Plant MTPS 9 MTPA RUBM 0.75 Coal MTPA Plate Mill 1.2 Rebar SMS 2.0 Overseas MTPA Mill 1.0 MTPA MLSM 0.70 6.20 MTPA MTPA Tamnar 600** MW MTPA CPP 851 MW CPP 810 MW

Power Hot Metal Liquid Steel Finished Steel

* Rated Capacity ** To be commissioned

• Ability to secure raw materials - ensuing coal block & Iron ore auctions.

• Superior Diverse Product profile - Large Global Resource base.

• Strong market position - supported by recently commissioned capacities in Steel & Power.

• Ability to Sweat enhanced capacities - generate Higher revenue in FY16 and beyond.

• Diversified Cash flows and Group’s healthy financial flexibility.

• Attractive Valuation - Intrinsic value of the company – in Steel (45K Cr) and Power (20K Cr) not reflected in its market cap (14K Cr*).

Copyright @ 2015 Jindal Steel & Power Limited 9 Shareholding of JSPL from FY11 to FY15 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 Promoters 58.41% 58.91% 59.13% 60.41% 60.41% 60.48% 61.10% 61.29% Institutional Investors 29.54% 28.96% 27.45% 26.45% 27.15% 25.91% 23.59% 22.66% Public and other share holding 12.05% 12.13% 13.42% 13.14% 12.44% 13.61% 15.32% 16.05% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Number of share holders 1,23,842 1,26,678 1,32,311 1,35,593 1,35,237 1,55,060 1,67,846 1,66,370

Number of share holders

2,00,000

1,50,000 1,67,846 1,66,370 1,55,060 1,35,593 1,35,237 1,00,000 1,23,842 1,26,678 1,32,311

50,000

- Number 31-Mar-11of share31-Mar-12 holder31-Mar-13 s (Retail31-Mar-14 /HNI)30-Jun-14 increases30-Sep-14 by 31-Dec-1415% in31-Mar-15 2Q FY15

3.25 MTPA Liquid Steel 2.45MTPA Finished Steel 851 MW Capacity Steel Power

13 Structural Steel Division

Installed Installed Plant Covered area Plant Covered area Capacity (Ton) (Sq. Mts) Capacity (Ton) (Sq. Mts) Punjipatra 1,20,000 60,000 Angul 84,000 32,000 (Raigarh) (Odisha)

2.5 MTPA Steel 810 MW Capacity Power

2.3 MTPA – SMS Concast 8 strand billet caster

1) The DRI - Coal Gasification route is being used for the first time in the world and has the advantage of using high ash coal.

2) The technology of Coal Gasification Plant has been taken from Lurgi( South Africa and Germany) for producing syn gas from coal using a process known as - Fixed bed dry bottom coal gasification process.

3) The DRI plant is the first ( Technology - Midrex USA) in the world to produce cold/hot DRI using synthesis gas.

. Developed steel grades for various critical applications like boilers, ship building, petroleum pipes, high strength grades for automotive and earth movers, structural steel for oil exploration platforms, grades for making warships , ballistic launch applications and bullet proof vehicles, stainless steel low thickness plates for nuclear application

9 MTPA Pellet Capacity

Wire Rod- .60 MTPA Bar Mill- 1.00 MTPA Finished Steel = 1.60 MTPA

Capable of handling 35 MTPA of cargo.

Good connectivity to all our plants.

IR’s approval for purchase of special rakes for transportation of 260m. Long rails under SFTO policy- for DFC project.

Getting dedicated BOY rake for iron ore fine transport for Nayagarh to Barbil.

Hot Rolled Plates Angles and Channels Fabricated Structures Parallel Flange Beams and Coils

Rails TMT Rebars Wire Rods Power

• Fixed Price 1747 Dealers 31 JSPL sales team • Fixed Length

43 •DISTRIBUTORSFixed Weight 264 Distributor ASOs

28 out of 29 states 450 districts out of 671

5 out of 7 Union territories

23 Key Customers

S.E ASIA, 1%

MEXICO, 4% USA/CANADA MIDDLE EAST, , 24% 42%

NEPAL/ BANGLADESH WRT/TMT / SRILANKA, AFRICA, 24% 5% PLATE SEMIS

EU, 0%

STRUCTURAL

RAIL PREFAB

Cement Cut & Bend Welded Mesh Speed Floor LGS 0.7 MTPA 48000 MT pr annum 12000 MT pr annum 6000 MT pr annum 12000 MT pr annum

EPS Panels Road Stabilizer Bricks & Pavers LWA BACK 1.9 Lakh Sqm pa 0.7 MTPA 3.7 Lakh/day 3 Lakh m3 pa

29 May 2015 V1 Ravi Uppal 26 Power Capacity at a glance

311 MW

96.43% subsidiary of JSPL

EUP -I EUP -II EUP -III 1000MW (4 X 250) 1200MW (2 X 600) 1200MW (2 X 600*)

*600 MW Synchronized, Await Commissioning

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

Year 2014-15 3228 (171) 10636 93% (EUP 1)

Year 2013-14 2457 1107 8282 92%

Year 2012-13 2510 1113 7973 91%

Year 2011-12 3,040 1765 8589 98%

FY FY Growth Quarter 3 Growth Particulars 2014-15 2013-14 (%) 2014-15 2013-14 (%) Turnover 3,228 2,457 31% 774 539 43% EBITDA 1,653 1,511 9% 335 280 20% EBITDA% 51% 62% - 43% 52% - PBT (Before Exceptional) 1106 1407 -21% 213 275 -23% PBT 2 1407 178 275 PAT (171) 1107 97 218 Depreciation + 521 274 90% 131 74 77% Amortization Cash Profit 543 1411 313 299 Generation (million 10636 8282 28% 2692 1882 43% units) PLF (%) - 4X250 MW 93% 94% - 82% 85% - PLF (%) - 3X600 MW 21% NA NA 24% NA NA

Present Inter-Regional Anticipated transmission capacity addition Transfer Capacity Region Available LTA/MTOA Transmission line name Additional Time frame Transfer Capacity Capacity

Chhattisgarh Area 9700 MW 6862 MW 765 kV D/C Raipur -Wardha Line-I 2500MW Commissioned (W#3)

765 kV D/C Raipur -Wardha Line-II 2500 MW Jun'15

WR to NR 4900 MW 5157 MW 765 kV Gwalior -Jaipur Line - I 2500 MW Aug’15 765 kV Gwalior -Jaipur Line - II

Champa-Kurukshetra HVDC Line 3000 MW June’16

WR to SR 1550MW 1350 MW 765kV D/C Kolhapur-Narendra line 1940 MW Oct'15

These Transmission Lines would help in evacuation of Power for JPL

Copyright @ 2015 Jindal Steel & Power Limited 31 Corporate Office, Jindal Africa Copyright @ 2015 Jindal Steel & Power Limited 32 Summary of International Operations

Botswana, Africa Shadeed, Oman Indonesia, Asia  Acquired CIC Energy in 2012 for 120 mn USD .  1.5 MT HBI & 2 MT SMS Plant – Medium to large size  Coal Mine with Resource of over 3 bn MT (high plans to make it an Integrated deposits of prime hard grade thermal coal) Steel Plant coking and low ash – low sulphur thermal coal for

open-cast operation Mozambique, Africa

 Developing a coal mine (3 MTPA) in Mozambique’s coal-rich Moatize region

 Coal resources estimated at 1.2 bn tonnes including coking coal

South Africa, Africa Australia Madagascar,  Acquired 82.04% controlling . JSPL’s Kiepersol Colliery produces Anthracite stake in Wollongong Coal coal, sold domestically and internationally Plans Africa (Erstwhile Gujarat NRE coking to ramp up capacity  Proposed Cement Plant coal Limited)

OMAN SOUTH AFRICA Particular 4QFY15 FY15 Particular 4QFY15 FY15 Production HBI (MT) 368,690 14,19,671 Production ROM (MT) 169,026 501,051 Production Steel* 189,757 534,211 Production Prime 121,131 378,534 (MT) Products/Middling Sales HBI (MT) 122,513 783,324 Sales Prime Products/ 107,835 461,481 Sales Steel (MT) 166,136 490,071 Middling (MT) Sales (Million USD) 111 512 Sales (Million USD) 7.22 36.33 EBITDA (million USD) 32 119 EBITDA (Million (2.12) (0.54) PAT (Million USD) 6 52 USD) MOZAMBIQUE WOLLONGONG COAL Ltd

Particular 4QFY15 FY15 Particular 4QFY15 FY15 Production (ROM MT) 288,157 1,312,400 Production (MT) 39,172 175,585 Sales Coking Coal (MT) 93,563 306,280 Sales (MT) Nil 171,202 Sales (Million USD) 9.00 37.45 Sales (Million USD) -- 18.87 EBITDA (Million USD): (5.20) (13.47) EBITDA (Million USD): -- (17.96)

- 29 May 2015 - South Africa

Underground Anthracite and Lean Bituminous Coal mine

- - Copyright @ 2015 Jindal Steel & Power Limited 36 Wollongong Coal Ltd.- Australia

- - Sohar, Oman

• DRI Production : 1.5 MTPA gas based Midrex Technology • Major products : HBI & HDRI • Rolling Mill expected to be commissioned by Jan 2015 • SMS Production : 0.5 MT in FY15 • Highest Plant & Operational availability in 2014

• Potential Resource: 2 bn MT • Grade: Semi Hard coking coal , High Grade Thermal Coal • Current Mining @ 3 MTPA run rate • 3 MTPA Coal Washery commissioned

 Unique Geographic Location

• Wollongong (80 kms. South of Sydney)

• Experienced mining community available

• Port Kembla: Less than 20 kms with sufficient coal handling and Cape size capacity

• Easy and reliable connectivity through Rail and Road

Unique unmatched location with significant strategic advantages

• 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 which can be expanded to 1.2 MTPA capacity annually

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 operation Pit Sampling

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

Copyright @ 2015 Jindal Steel & Power Limited 42 Copyright @ 2015 Jindal Steel & Power Limited 43 Consolidated Financials at a Glance

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 INCOME STATEMENT Revenue 5,539 10,913 11,152 13,194 18,351 19,807 19,286 19,401 EBITDA 2,253 5,908 5,232 6,398 6,935 6,669 5,776 5,483 PAT 1,251 3,007 3,635 3,804 4,002 2,912 1,894 -1,278 Cash Profit 1,810 4,194 4,760 5,115 5,575 4,593 3,876 2,064 BALANCE SHEET Gross Block 10,680 14,928 21,109 29,317 35,802 45,912 63,056 70,301 Net Worth 3,824 7,021 10,387 14,088 17,931 21,150 21,191 19,306 Borrowings 6,996 8,113 8,605 13,987 17,058 24,618 36,368 45,501 Net Debt 6,225 7,091 8,436 12,854 15,616 24,430 35,419 42,929 SIGNIFICANT RATIOS EBITDA Margin (%) 41 54 47 48 38 34 30 28 Net Profit to Sales (%) 23% 28% 33% 29% 22% 15% 10% -7% Return on Net Worth (%) 34% 43% 35% 27% 22% 14% 9% -13% Long Term Debt Equity 1.74 1.03 0.59 0.7 0.61 0.77 1.29 2.17 EPSRatio (INR/Share) (a) (b) 13.54 32.44 39.05 40.75 42.42 31.13 20.53 -14.00 (Exceptional Item in FY15 = Rs. 1,912 Cr)

For 12M ending Particulars (Rupees in Crores) 31.03.2015 31.03.2014 Turnover-Total 13,390 13,826 EBITDA 3,943 4,012 EBITDA % 29% 29% Depreciation 1,786 1,221 Finance costs 2,072 1,337 Profit before tax & exceptional item 168 1,601 Exceptional item 808 - Profit before Tax (639) 1,601 Profit after Tax (PAT) (311) 1,292 Cash Profit after exceptional item 1,844 2,644 CAPEX 3,249 5,514

Higher interest depreciation costs drags profitability

For 12M ending Particulars (Rupees in Crores) 31.03.2015 31.03.2014 Turnover-Total 19,401 19,286 EBITDA 5,483 5,776 EBITDA % 28% 30% Depreciation 2,733 1,829 Finance costs 2,607 1,501 Profit before tax & exceptional item 369 2,512 Exceptional item 1,912 - Profit before Tax (1,543) 2,512 Profit after Tax (1,278) 1,910 Cash Profit after exceptional item 2,064 3,876 CAPEX 5,705 11,520

Exception Item (levy on coal) results in loss on consolidated basis.

*Adjusted

Maximize Asset Utilization & Capital Efficiency drive Operational Excellence

Exit from “Non Core” & “Non Major drive on “Customer Focus” Performing” businesses & Key Account Management

Steel Business

 Reduce dependence on thermal coal by going through BoF route.

 Operational Efficiency with an aim to Reduce overall costs in Steel

production.

 Commissioning of Head Hardening Rail project in Raigarh

 Optimize capacity utilization of Angul and Patratu plants

 Increase steel product sales in contiguous states.

Power Business

 Ensuring adequate coal procurement for JPL.

 Signing of Bilateral ,short and long Term PPA’s.

Mines & Minerals

 Secure permission for movement of Fe fines stockpile to JSPL Barbil

 Participate in the Auctions of coal blocks (phase 3) and Iron ore mines.

 Ensuring coal & Iron ore availability through participation in E-auction

Global Business

 Increase Production in WCL Mine, Australia .

 Cash Break Even in Mozambique, WCL Mine.

Financial / General

 Increasing Turnover exponentially by Sweating of enhanced capacitates.

 Generate higher EBITDA as a number to bring down Net Debt.

 Look at avenues to generate Cash flow through non operational route.

9 PILLARS OF CSR

• Central Electricity Authority (CEA) confers JPL with Top awards for “Early Completion of Thermal Power Projects” for FY 13-14 under a scheme by MoP.

• Gold Shield awarded to Unit -2 of 600 MW.

• Silver Shield awarded to Unit-1 of 600 MW . .

Shrishti Global Award -2014 2014 Global HR Excellence Award-2014

International Safety Award with merit 2014 by British Safety Council, UK. 2013 World CSR Congress Award 2013 Greentech CSR Award 2013

2012 Golden Peacock National CSR Award 2012

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 2011 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

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 2010 Golden Peacock Innovation Management Awards CSR Excellence Award 2010 by ASSOCHAM for promoting and propagating Corporate Social Responsibility initiatives

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

SAFETY INDUCTION ON-THE-JOB SAFETY TRAINING

SAFETY REVIEWS SAFETY AUDITS / INSPECTIONS

TOOL BOX MEETINGS SAFETY AWARDS/REWARDS

MEDICAL EXAMINATIONS/ WORLD CLASS PPEs MOCK DRILLS

Mr. D.Balasubramanyam Head of Investor Relations Tel: 011-26739109, Mobile: 8130755166 Email: [email protected]

Mr. Nishant Baranwal Investor Relations Tel: 011-26739178, Mobile: 8800690255 Email: [email protected]