STEEL AUTHORITY OF INDIA LIMITED RESULTS PRESENTATION FOR Q1 FY 2020-21 STEEL AUTHORITY OF INDIA LIMITED

Economic & Steel Scenarios WORLD ECONOMIC SCENARIO

SOURCE: IMF Growth Rates 5.4 5.9 ( in %) 4.8 4.8 4.5 3.8 3.6 3.7 2.9 2.4 2.2 1.9 2017 (E) 2018 (E) 2019 (E) -3 2020 (P) -4.9 2021 (P)

-8

World Advanced Economies Emerging & Developing Economies IMF projected the growth for 2020 at 2.9% in its Jan 20 World Economic Outlook (WEO). As the economies started entering lockdown, this figure was revised to -3% in April 20. With the effects of COVID-19 not waning easily, and economic recovery not in sight, the growth projection was further pulled down -4.9% in the June 20 WEO.

Global growth in 2021 is however projected to bounce back to 5.4% in 2021 INDIAN ECONOMIC SCENARIO

SOURCE: CSO, GoI & Economic Survey GDP Growth % at Constant Prices (2011-12 Prices) 8.0 8.2 6.4 7.4 7.0 6.1 4.2

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 (Q1) In line with the global projections, Indian economy is also expected to contract during 2020.

Q1 2020-21 data on GDP shows a contraction of 23.9%.

The Rating Agencies like Fitch and Goldman Sachs have revised their figures sharply downward for the FY 21 to -10.5% and -14.8% after the Q1 data. -23.9 Last available projections from major financial agencies are as follows:

Source Growth Projection WORLD BANK -3.2% (FY21) and 3.1% (FY22) IMF -4.5% (CY20) and 6.0% (CY21) RBI -6% - 1% (FY21) WORLD STEEL SCENARIO

Crude Steel Production (mtpa)

1809 1870 1730 (Crude Steel Production) 1627 • In line with projections, Global Production upto July 20 declined 996 World 920 889 808 819 871 859 874 by 5.3% and stood at 1027 mt China vis-à-vis 1085 mt during CPLY. Rest of World • China however increased its production by 2.8% during this period clocking 593 mt as 2016 2017 2018 2019 against 577 mt during CPLY. World Steel Association (WSA) Short Range Finished Steel Consumption (mtpa) Outlook (SRO) : • Global steel demand will decrease by 6.4% 1708 1767 1717 1597 1654 in 2020 and increase by 3.8% in 2021. 1546 1551 1505 1521 • China’s growth is set to go down to 1% in 2020 and constant in 2021. • In the Emerging and Developing Economies excluding China, steel demand is forecast to fall by 11.6% in 2020 and rise by 9.2% in 2021. • Demand in India expected to fall by 18% in 2013 2014 2015 2016 2017 2018 2019 2020 2021 2020 and rise by 15% in 2021. (F) (F) INDIAN STEEL SCENARIO

Crude Steel Production (mtpa) • India’s Crude steel 101.5 109.3 111.2 production (2019) : 87.3 89.0 95.5 111.2mtpa (growth of 1.8 % 1.7% over 2018) • India overtook USA as the second largest consumer of 2014 2015 2016 2017 2018 2019 steel in 2019. Finished Steel Consumption (mtpa) • As per WSA, Short Range 102 89 97 96 Outlook, demand in India is 80 84 83 set to fall by 18% in 2020 and grow by 15% in 2021. Source: WSA 2015 2016 2017 2018 2019 2020(F) 2021(F)

Performance 2020-21: • Due to the impact of COVID-19 Pandemic and consequent lockdown, the consumption during April-August 20 fell to 26.41 MT as against 42.54 MT during CPLY, significantly decline of almost 38%. • As the producers adjusted their production in line with the demand, the production declined by 27% and stood at 33.55 MT as against 46.23 MT during CPLY. Source: JPC INDIAN STEEL PERFORMANCE

% +/- Over INDICATORS UNIT Q1 20-21 Q1 19-20 CPLY Growth in Index of Industrial Production ^ % -35.9 3.0 -38.90 Production - Finished Steel * MT 12.54 26.54 -52.7 Imports - Finished Steel * MT 1.21 1.80 -32.8 Exports - Finished Steel * MT 3.27 1.33 145.4 Consumption - Finished Steel * MT 10.49 27.01 -61.2 Real Consumption of Finished Steel * MT 10.69 24.77 -56.8

^ As per CSO *Source JPC Report 7 INTERNATIONAL PRICE (FOB) TREND

USD/Tonne

HRC- China CRC- China 575 556 568 545 550 539 537 549 522 527 519 525 504 501 517 504 489 495 483 531 529 445 451 513 515 507 502 515 486 493 482 493 459 470 462 457 435 444 440 438 401 413

567 HRC- CIS CRC- CIS 551 554 542 543 539 540 549 527 535 538 518 519 492 509 461 472 437 444 430 499 512 418 494 481 475 482 475 478 478 452 453 460 464 429 405 417 381 384 372 360 STEEL AUTHORITY OF INDIA LIMITED

Performance Highlights PERFORMANCE HIGHLIGHTS : Q1 FY’21

 Net Sales : Rs 8838 Crore

FINANCIAL  EBITDA : - Rs. 125 Crore PERFORMANCE  PBT : - Rs 1985 Crore  PAT : - Rs 1270 Crore

 Hot Metal Production : 2.678 MT  Crude Steel Production : 2.474 MT PRODUCTION & SALES  Saleable Steel Production : 2.278 MT PERFORMANCE  Semis component in production : 39.58% of saleable steel  Value Added Production : 1.194 MT  Production through concast route : 2.449 MT  Saleable Steel Sales : 2.237 MT SAIL STOCK PRICE MOVEMENT

SAIL's Share Price (Rs.) Sensex Points

41254 38673 39714 40129 38297 38628 3619436068 37481 34442 40794 34916 39032 39395 38667 40723 33718 36257 35867 37333 37607 38757 32424 29468

56 54 56 47 48 50 51 64 43 39 43 47 39 55 31 33 37 36 32 40 23 30 30 34

Closing Share Price and Sensex as Dividend Interim Final Total Dividend Tax on the last day of the month (%) (%) (%) (Rs. crore) (Rs. crore) * As on Sept 14, 2020 FY 20 - - - - - FY 19 - 5 5 206 DIVIDEND FY 18 - - - - - PAYOUT FY 17 - - - - - FY16 - - - - - FY15 17.5 2.5 20 826 165 FY14 20.2 - 20.2 834 142 STEEL AUTHORITY OF INDIA LIMITED Operational Performance PRODUCTION PERFORMANCE

All figures In Million Tonne 3.7

15.1 15.1 13.9 14.1 2.3 SALEABLE 12.8 12.4 STEEL PRODUCTION

(incl. SSPs) Q1 FY20 Q1 FY21

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Annual Quarterly

14.7 14.7 3.6 13.4 13.8 SALEABLE 12.4 11.9 STEEL 2.2 PRODUCION (5 ISPs)

Q1 FY20 Q1 FY21 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Production has been severely affected on account of COVID-19 impact during Q1 FY21 PRODUCTION PERFORMANCE : FY 20

0.8%

1.0% Ingot CRUDE STEEL BOF PRODUCTION Route BY PROCESS EAF CC Route No production 99.0% 99.2% through THF Route this financial year

SALEABLE STEEL Commodity PRODUCTION 47.6% 52.4% Value Added BY PROCESS PRODUCTION PERFORMANCE : FY 20

SAIL The percentage of semis has almost doubled while 32.7% PRODUCT MIX : both flat and long 39.6% finished products saw a 5 ISPs decline in share as the production was regulated 27.8% in line with the demand

BSP 0.8% 63.4% 35.8%

DSP 23.1% 76.9% Flats

RSP 69.1% 30.9% Longs Semis

BSL 93.6%

ISP 38.8% 61.2% SALES PERFORMANCE

All figures In Million Tonne 14.1 14.1 14.2 13.1 11.7 12.1 3.3 TOTAL SALES 2.3 (incl. SSPs)

Q1 FY20 Q1 FY21 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Annual Quarterly 13.8 13.8 13.9 12.7 11.2 11.7

SALES 3.3 OF 5 ISPs 2.3

Q1 FY20 Q1 FY21 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Domestic demand was severely impacted on account of COVID-19. However, SAIL seized the opportunity available in the international market by exporting about 5.38 lakh tonnes during Q1 FY 21 as against 2.43 lakh tonnes during CPLY, a growth of 122%. Further, the domestic markets are also looking up quite positively now. SAIL has again led the market by notching up its best ever performance for the months of June, July and August. STEEL AUTHORITY OF INDIA LIMITED Efficiency & Sustainance Performance RECENTLY DEVELOPED PRODUCTS

NARRROW PARALLEL FLANGE BEAM 750: USAGE IN CONSTRUCTION INDUSTRY

LINKE HOFMANN BUSCH (LHB) WHEELS: USAGE FOR RAILWAYS PRODUCT CUSTOMISATION FOR END USERS HYVA TIPLERS

Main Frame Track Frame HSMP AND PMP GRADE: IS 2062E450, E600

Boom Front Frame Arm PRODUCT CUSTOMISATION FOR END USERS

ASHOK LEYLAND U TRUCK U 2518T CAPTAIN 2518

HRC PMP GRADE: IS5986, ISH500, LAHFQ450 PRODUCT CUSTOMISATION FOR END USERS

Rear Axle Beam developed using HRC SAILFORMING 410 / 450 grades

Live Axle Beam

Dummy Axle Beam TECHNO-ECONOMIC PARAMETERS

Coke Rate: kg/thm CDI Rate: kg/thm 76 513 76 504 60 70 60 489 49 40 473 467 34 456 453 457

FY FY FY FY FY FY FY Q1 FY FY FY FY FY FY FY Q1 14 15 16 17 18 19 20 FY21 14 15 16 17 18 19 20 FY21 Reduction of 11% over FY14 Increase of 123% over FY14 Specific Energy Consumption:3 GCal/tcs BF Productivity: T/m3/Day1.80

6.94 6.59 6.52 6.51 6.60 6.49 6.50 6.47 1.70 1.67 1.65 1.67

1.58 1.56 1.58

FY FY FY FY FY FY FY Q1 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20Q1 FY21 14 15 16 17 18 19 20 FY21 Reduction of 2% over FY14 Improvement of 14% over FY14 Calculation done on considering performance during FY20. Performance during Q1 severely impacted on account of lower volumes SUSTAINANCE PARAMETERS

PM Emission Load: kg/tcs Specific CO2 Emission: m3/tcs

0.83 0.81 0.81 0.77 0.74 2.74 0.70 0.69 2.65 2.60 2.61 2.57 2.56 2.54

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1 21 FY21 Reduction of 17% over FY15 Reduction of 4% over FY15 3 Solid Waste Utilisation (%) Specific Water Consumption: m3/tcs

89 88 85 84 83 83 85 4.20 3.83 3.75 3.66 3.62 3.44 3.50

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 15 FY 16 FY17 FY18 FY 19 FY 20 Q1 FY21 Increase of 4% over FY15 FY 21 Reduction of 4% over FY15 Calculation done on considering performance during FY20. Performance during Q1 severely impacted on account of lower volumes. MANPOWER PERFORMANCE

LABOUR PRODUCTIVITY TREND (tcs/man/year)

389 400 344 320 302 315 Improvement 278 of 44% over FY14

FY 14 FY 15 FY 16 FY17 FY18 FY19 FY20 3 LABOUR PRODUCTIVITY Q1 FY 21 VIS-À-VIS CPLY (tcs/man/year) MANPOWER 438 388

Total manpower as on 01.07.2020: 68326 252

Reduction in Q1 FY 21: 1053

Q1 FY 20 Q1 FY 21 Q4 FY 20 POWER CONSUMPTION – FY 20

12.54%

Own CPP

Drawl from Grid

54.61% Purchase through 31.08% Power Exchange JV CPP

1.77% STEEL AUTHORITY OF INDIA LIMITED

Financial Performance FINANCIAL PERFORMANCE

Rs. Crore Q4 FY 20 Q1 FY 21 Q4 FY 19 (INDAS Compliant figures)

Sales 16024 8838 14645

EBITDA 6917 -125 1765

Depreciation 1055 973 872

Finance Cost 909 886 788

PBT Before Exceptional Items 4953 -1658 104 Exceptional/Abnormal Items (VRS/Suspended Operations) 772 - - PBT After Exceptional Items 4181 -1985 104

Tax 1456 -715 35

Profit After Tax 2725 -1270 69 FINANCIAL PERFORMANCE

All figures in Rs crore Annual Profit Trend

11184 10283 EBITDA

Cash Profit 6723 6926

5586 PBT 5184 4132 PAT 3338 3171 2359 2306 2093 2179 2022

672

-759- 482

-2204 -2171 -2833

-4021 -4606 -4851

-7008 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FINANCIAL PERFORMANCE

Quarterly Performance All figures in Rs crore Q1 FY 20 vs Q1 FY 21 vs Q4 FY 20

6917

EBITDA Cash Profit PBT PAT 5236

4181

2725

1765

976

69 -125 104 -1012 -1985 -1270

Q1 FY 20 Q1 FY 21 Q4 FY 20 FINANCIAL PERFORMANCE

EBITDA Movement Q1 FY 21 vs Q1 FY 20

-1621 1765 -225 -1206 1181

-125 -19

EBITDA Q1 FY 20 Volume /Mix Cost Raw Material Price Impact Others EBITDA Q1 FY21 Usage

All figures in Rs crore FINANCIAL PERFORMANCE

EBITDA Movement Q1 FY 21 vs Q4 FY 20

6145 -2235

-1359 1077 -327 -4262

-125 772 65

EBITDA Q4 FY Volume/Mix Raw Material Cost Price Impact Valuation COVID19 Others EBITDA Q1 FY 20 Usage Impact 21

All figures in Rs crore FINANCIAL PERFORMANCE

Annual Net Worth Annual Borrowings & Interest cost 54127 5000 50000 45409 45170 39196 39777 38152 41396 40000 35141 4000 36009 35714 Annual 30000 3487 3000Borrowings 20000 3155 2823 2528 Interest 10000 2000 2300 Cost 0 1000 FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 Quarterly Net Worth Quarterly Borrowings & Interest cost 54407 51589 51871 54127 48456 2000 50000 38191 37605 37182 39777 38509 40000 1500 Quarterly 30000 1000Borrowings 20000 940 909 886 788 849 10000 500Interest Cost Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY 0 0 20 20 20 20 21 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY All figures in Rs. crore 20 20 20 20 21

Debt Equity Ratio 31/03/15 31/03/16 31/03/17 31/03/18 31/03/19 31/03/20 30/06/20 0.69 0.90 1.15 1.27 1.18 1.36 1.41 STEEL AUTHORITY OF INDIA LIMITED Capacity Building SAIL’s MODERNISATION & EXPANSION PLAN

Actual Production Capacity After Million Tonne 2019-20 On-going Expansion Crude Steel 16.155 21.4 Saleable Steel 15.083 20.2

Technological Shift Before After Technology Expansion Expansion BOF Steel Making 79% 100% CC Route 71% 94% Pelletisation Plant No Yes Coke Dry Quenching Partial Yes Top Pressure Recovery Turbine No Yes Auxiliary Fuel Injection in BF Partial Coverage Full Coverage Desulphurization of Hot Metal Partly 100 % Beam Blank Casting No Yes Coupled Pickling & Tandem Mill No Yes Beneficiation Plant Partial Full MODERNISATION & EXPANSION PLAN

 Production through twin-hearth furnace (THF) route to be replaced by BOF-LD converter route.  Production through Ingot – teeming route to be replaced with continuous cast production route. EXPECTED  Enhancement of Production volume by addition of 2 new 4060 m3 Blast OUTCOME Furnaces and one Blast Furnace of 4160 m3.  Increased Market Share.  World class technology and products.  Improved Product Mix / proportion of value added products to increase.  Enhanced Pollution Control measures, with Environmental Conservation.

 Auto grade CR Products, Galvanized Coils /Sheets.  Plates / Pipes to meet up to API 100 Grade specification.  Universal Beams/Heavy Beams to support increasing Infrastructural PRODUCTS requirements. BEING  Rails for Metro – Railways and Dedicated Freight Corridors. ADDED:  Increased production of Rails and Wheels to meet the increasing requirements of Indian Railways.  Quantum jump in Rounds and Structural production.  Wider Plates in the size of 4300 mm. ONGOING PROJECTS (CAPEX)

(Rs. Crore) 12191 61870 1 Expansion of existing capacity

3509 2 Value-addition / Product-mix improvement 7039 22739 3 Technological up gradation / Modernization Sustenance including de-bottlenecking, AMR 4 & Environment 39131 39131 5 Total Estimated Cost In addition, a Capex Plan of Rs. 10264 crore has been made for augmentation of Raw material 1 2 3 4 5 facilities.

11021 TOTAL CAPEX 9731 9890 (INCL. ON MODERNISATION & Rs. crore EXPANSION) SAIL had a Capex of Rs. 653 6840 crore during Q1 FY 21. Capex Plan for FY20 was Rs.4000 6034 4938 5130 Crore (including expenditure towards 4303 4112 Capital Repairs and Spares needed to be capitalised under Ind AS).

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 CAPACITY AFTER EXPANSION

Saleable Steel Hot Metal (MTPA) Crude Steel (MTPA) (MTPA) Plant After After After 2019-20 2019-20 2019-20 Expansion Expansion Expansion BSP 4.82 7.5 4.50 7.0 3.98 6.6 DSP 2.40 2.5 2.19 2.2 2.08 2.1 RSP 3.63 4.5 3.51 4.2 3.21 4.0 BSL 4.09 5.8 3.67 4.6 3.39 4.2 ISP 2.51 2.9 2.08 2.5 2.09 2.4 VISL 0.00 0.3 0.00 0.2 0.01 0.2 ASP - - 0.10 0.5 0.10 0.4 SSP - - 0.11 0.2 0.23 0.3 TOTAL 17.44 23.5 16.16 21.4 15.08 20.2 PRODUCT MIX POST EXPANSION – SALEABLE STEEL

Galvanized Products CR Coils/Sheets 1% PET Products Q1 FY 2020-21 3% 1% HR Plates/Coils/Sh Semis eets/skelp 33% 22%

PM Plates 9% Structurals Galvanized 6% PET Bars & Rods Products CR Products Rly Products 12% 3% 13% Coils/Sheets 1% 11% Semis 12% Structurals HR 14% Plates/Coils/ Sheets/skelp 16%

Bars & Rods Post 19% Ongoing Expansion PM Plates 16% Rly Products 8% MODERNISATION & EXPANSION PLAN - SALEM STEEL PLANT

Facilities added: •Steel melting Shop – Electric Arc Furnace (55 T); AOD Converter (60 T); Ladle Furnace (60 T); Single Strand Slab Caster. • Roll Grinder for Hot Rolling Mill • Cold Rolling Mill Complex

Production (MTPA) : Item 2019-20 (Actual) After Expansion Crude Steel 0.11 0.18 Saleable Steel 0.23 0.34 MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT

Facilities Completed: • Raw Material Handling System • New Coke Oven Battery (0.88 Mtpa, 7 m tall) • Coke Dry Cooling Plant • Sinter Machines (3.88 Mtpa gross sinter production, 2x204 m²) • Blast Furnace 4160 m3 volume (2.7Mtpa) • 3 nos. of 150 T BOF Converters • 2x6 Strand Billet Casters (1.67 Mtpa) • 1x4 Strand Bloom-cum-Beam Blank Caster (0.83 Mtpa) • Wire Rod Mill (0.55 Mtpa) • Bar Mill (0.90 Mtpa) • Universal Section Mill (0.85 Mtpa) MODERNISATION & EXPANSION PLAN-IISCO STEEL PLANT

New stream to produce 2.7 Mtpa of Hot Metal & 2.5 Mtpa of Crude Steel

Production (MTPA) : Item 2019-20 (Actual) After Expansion Crude Steel 2.08 2.50 Saleable Steel 2.09 2.39

The expanded capacity of IISCO Steel Plant has been dedicated to the Nation by the Hon’ble Prime Minister on 10.05.2015. Current ProgressBURNPUR of Expansion at IISCO Steel Plant

Coke Oven Battery Sinter Plant Blast Furnace

BOF Converters

Billet Casters

Wire Rod Mill MODERNISATION & EXPANSION PLAN– BOKARO STEEL PLANT

Facilities Completed: •Re-building of Coke Oven Battery #1 & #2. •Up-gradation of Blast Furnace #2 and Stoves Up-gradation of #5 •Auxiliary Fuel Injection (CDI) in Blast Furnaces #2 & #3. •Turbo-Blower-8. •New CRM Complex (1.2 Mtpa) •Up-gradation of HSM with augmentation of Roughing Facility (4.5 MTPA).

Production (MTPA) : Item 2019-20 (Actual) After Expansion Crude Steel 3.67 4.61 Saleable Steel 3.39 4.18 Current Progress of Expansion at Bokaro Steel Plant

Coke Oven Blast battery-2 Furnace-2

PLTCM

Coil Packaging Line

Skin Pass Mill Bell Annealing Furnace MODERNISATION & EXPANSION PLAN-BHILAI STEEL PLANT Facilities Already Completed: • Ore Handling Plant part-A • Second Sinter Machine in Sinter Plant-3 (3.7 MTPA) • New Coke Oven Battery No. 11 (7 m tall, Capacity 0.881 mtpa) • Oxygen Plant (BOO basis) • Universal Rail Mill (1.2 MTPA) and Rail Welding Line • Bar and Rod Mill (0.9 MTPA) • Blast Furnace 4060 m3 (2.8 Mtpa) • New Steel Melting Shop (SMS-3) with Converter-1 &2 and New Billet Casters (2x6) and New Billet-cum-Bloom Caster (1X6). • Convertor - 3, LF -3, Argon Rinsing Station-3 in SMS -3.

Production (MTPA) : Item 2019-20 (Actual) After Expansion Crude Steel 4.50 7.0

Saleable Steel 3.98 6.56 Current Progress of Expansion at Bhilai Steel Plant

Sinter Machine Coke Oven Battery - 11

Blast Furnace - 8

Continuous Caster - 1

Bar & Rod Mill

Universal Rail Mill MODERNISATION & EXPANSION PLAN– ROURKELA STEEL PLANT

Facilities Completed: • New Coke Oven Battery -6 (7 m tall, 1 x 67 ovens) • New Sinter Plant -3 (1 x 360m²) • New Blast Furnace -5, useful volume - 4060 m3 • New 3rd Single Strand Slab Caster (1.5 MTPA) • New Oxygen Plant 2x700 tpd on BOO basis • New 3rd BOF (150 T) Convertor • New 4.3 meter Wide Plate Mill

Production (MTPA) : Item 2019-20 (Actual) After Expansion Crude Steel 3.51 4.20 Saleable Steel 3.21 3.99

The expanded capacity of Rourkela Steel Plant has been dedicated to the Nation by the Hon’ble Prime Minister on 01.04.2015. Current Progress of Expansion at RourkelaSINTER PLANT Steel - 3 Plant

Coke Oven Battery - 6 Sinter Plant - 3

1 3rd BOF Converter 3rd Slab Caster

BOF Converter

Blast Furnace - 5 Tapping MODERNISATION & EXPANSION PLAN-DURGAPUR STEEL PLANT

Facilities Completed: • Rebuilding of Coke Oven Battery no-2 • New Ladle Furnace (125T) • Coke Sorting & Coal Handling Plant • New Dolomite Plant (300tpd) • Bloom-cum-Round Caster 1X4 (0.75 Mtpa) • New Medium Structural Mill (1.0 Mtpa)

Production (MTPA) :

Item 2019-20 (Actual) After Expansion

Crude Steel 2.19 2.20

Saleable Steel 2.07 2.12 Current Progress of Expansion at Durgapur Steel Plant

Coke Oven Battery-2 Ladle Furnace-3

Bloom cum Round Caster

Medium Structural Mill RAW MATERIALS Iron Ore Hot Metal Year Consumption Linkages of Iron Ore (mtpa) (mtpa) 2019-20 17.438 28.88 Existing Mines The capacity of existing mines at Kiriburu, Meghahatuburu, Bolani & Gua are being ramped up to meet the requirement of Iron Ore for post ongoing phase of expansion

New Pellet Plants - 4 MTPA capacity at Post 23.46 39 Gua, 1 MTPA at Dalli and 2 MTPA at RSP Expansion has been planned for utilization of accumulated Iron Ore Fines & Generated Fines

In addition to the above, new mechanised Iron Ore Mines are being developed at Rowghat, Chiria and Taldih RAW MATERIALS – Iron Ore Existing Capacity* after Mine Capacity* ongoing Remarks (mtpa) expansion (mtpa) Kiriburu 5.50 5.50 • Expansion at Kiriburu has already been completed Meghathaburu 5.00 6.50 whereas Meghathaburu is being ramped up to meet the requirement of the ongoing expansion plan. Bolani 7.50 10.00 • At Bolani, processing plant has been upgraded to 7.5 Gua 4.00 10.00 mtpa and is under stabilization. At Gua, Stage II FC is awaited from MoEF required for expansion only Rajhara, Dalli 8.70 7.00** Durgaiburu Lease. **Depleted resources and quality constraints New Pellet Plants New 7.00 • New Pellet Plants shall use the existing reserve of fines incl. dumps & slimes at captive mines. • Environment clearance obtained & FC obtained on 23rd Oct. 2017 for ML-162 lease. Barsua, Kalta, • Consequent to the order by the Hon’ble Supreme Court 6.00 6.50 Taldih dated 11.05.2018 and grant of subsequent clearances by the Government of Odisha, production at Barsua mine resumed on 20.05.2018. All statutory clearances have been received. MDO has Rowghat New 12.00 been engaged and LOA issued to MDO on 1st August 2017. MSA signed on 25.09.2017 for a period of 30 years. Chiria 0.75 5.80 Stage-II FC awaited from MoEF. * Finished Product capacity . The entire requirement of the increased capacity shall be met through captive mines RAW MATERIALS – Coal Coking Coal Hot Metal Year Requirement Linkages of Coking Coal (mtpa) (mtpa) • Import Component – 90.5% • Over 70% of imported coal is sourced from Australia. • Indigenous: 9.5% 2019-20 17.438 15.193 • Domestic coal is largely sourced from Coal India Ltd. • SAIL has existing captive clean coking coal production of nearly 0.7 mtpa, During 2018- 19, production was 0.27 mt. • Long term / Quarterly contracts cover 95% of Import requirements • Tasra captive coal mine being developed to produce 4 mtpa of ROM (1.8 mtpa washed Post coal) 23.46 19.5 Expansion • New linkages / acquisitions are being explored. • Request has been made to Ministry of Coal for allocation of new potential coking coal blocks in line with recommendations of NITI Aayog. STEEL AUTHORITY OF INDIA LIMITED Strategic Partnerships MAJOR JOINT VENTURES

FOCUS AREA ALLIANCE PARTNER REMARKS

. A Special Purpose Vehicle, namely, ‘Chhattisgarh Mega Steel Limited’ has been formed for setting-up STEEL an Ultra Mega Steel Plant (UMSP) in Bastar area of Chhattisgarh.

. SAIL Bansal Service Center Limited – A JV with Bansal Metal Works Ltd. for a Flat Product service centre at Bokaro. DOWNSTREAM . SAIL SCL Kerala Limited – A JV with Govt. of Kerala for STEEL PROCESSING producing TMT Bars at Kozhikode. UNITS . Prime Gold – SAIL JVC Limited – A JV with M/s Prime Gold for producing TMT Bars at Gwalior. . VSL SAIL JVC Limited – A JV with M/s Velagapudi Steel Ltd. for producing TMT Bars at Ujjain.

. JV with NTPC for operating and managing CPPs of ENERGY Bhilai, Durgapur and Rourkela. . JV with DVC for operating & managing CPP of Bokaro. MAJOR JOINT VENTURES

FOCUS AREA ALLIANCE PARTNER REMARKS

. SAIL Kobe Iron India Pvt. Ltd. – A Joint Venture Company has been formulated for setting up a 0.5 TECHNOLOGY mtpa capacity Plant for producing iron nuggets based on ITmk3 technology.

. International Coal Ventures Pvt. Ltd., a SPV of 5 leading PSUs incorporated (SAIL, RINL, CIL, NTPC & NMDC) for acquisition / operation of coal assets in RAW overseas territories.

MATERIALS . M/s S&T Mining Company Pvt. Ltd. formed with Tata Steel for developing coking coal mines in India. . M/s SAIL & MOIL Ferro Alloys (Pvt.) Ltd. formed with MOIL for production of Ferro-alloys at Bhilai.

. Bhilai Jaypee Cement Ltd. -Slag based cement plant of CEMENT 2.2 million tonne per annum capacity with grinding unit at Bhilai & clinkering unit at Satna. MAJOR JOINT VENTURES

ALLIANCE FOCUS AREA OBJECTIVE PARTNER

. SAIL RITES Bengal Wagon Industry Pvt. Ltd. – A WAGON Joint Venture Company has been formed with M/s MANUFACTURE RITES for setting up Wagon Manufacturing Factory at Kulti, West Bengal.

. JV with Tata Steel to promote e-commerce E-PORTAL activities in steel and related areas Abbreviations used

• BF Blast Furnace • FOB Freight On Board • SMS Steel Melting Shop • JPC Joint Plant Committee • BOF Basic Oxygen Furnace • Kg/thm Kilo Gram Per Tonne of • THF Twin Hearth Furnace Hot Metal • EAF Electric Arc Furnace • Tpd Tonnes Per Day • BSP Bhilai Steel Plant • MT Million Tonne • DSP Durgapur Steel Plant • Mtpa Million Tonne Per Annum • RSP Rourkela Steel Plant • EBITDA Earnings Before Interest, • BSL Bokaro Steel Limited Taxes, Depreciation & Amortization. • SSP Salem Steel Plant • PAT Profit After Tax • VISL Visvesvaraya Iron & Steel Plant • PBT Profit Before Tax • ASP Alloy Steels Plant • RINL Rashtriya Ispat Nigam Limited • CPLY Corresponding Period Last Year • CS Crude Steel • G.Cal/tcs Giga Calories per tonne of • CDI Coal Dust Injection Crude Steel • CC Continuous Casting • ISP Integrated Steel Plant • BOO Build-Own-Operate • HDGL Hot Dip Galvanizing Line • GoI Government of India • CR Cold Rolled • MOEF Ministry of Environment • HR Hot Rolled & Forests Disclaimer

Statements / Data which do not relate to SAIL and are used / made in this presentation are from sources which are considered reliable and Company cannot be held for its authenticity. Further, statements describing the Company’s projections, estimates, expectations are “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed depending on the circumstances / situations. Major factors that could affect the Company’s operations include, among others, economic conditions affecting demand / supply and prices in the domestic and global markets in which the Company operates, changes in Government regulations, tax laws and other statutes, etc.