Welspun Group || Welspun Welspun Corp Corp Ltd Ltd

WCL - Investor Presentation World’s 2nd Largest Pipe Manufacturer February 2013

1 | Welspun Corp Ltd

On The Path of Global Leadership…

WELSPUN CITY, ANJAR

2 Welspun Group | Welspun Corp Ltd

WCL – An Introduction

Consolidated Total Revenues • Flagship company of Welspun Group - one of the largest pipe (US$ million) nd 1,872 manufacturing companies in the world; declared 2 biggest large 2,000 1,762 1,548 1,368 diameter pipe company by FT in 2007 1,500 1,000 • International footprint with manufacturing and marketing facilities 500 worldwide offering a One-Stop-Solution for all line pipe requirements - • Partner of Choice for more than 50 Oil & Gas Giants across the globe; FY 10 FY 11 FY 12 9M FY13 geographically diverse client base including Chevron, Exxon Mobil, Saudi Operational EBITDA Aramco, British Gas , Kinder Morgan etc (US$ million) 500

• Accredited with ISO 9001, ISO 14001 and OHSAS 18001 certifications 400 318 278 300 232 • Strong order book of 1.1 million MT ~ US$ 1.4 billion 200 107 100 - Shareholding Pattern as on December 31, 2012 FY 10 FY 11 FY 12 9M FY13 Summary Market Statistics

As of February 15, INR Mn US$ Mn Promoter 2013 Public, Banks, 37.96% Financial Institutions and others Share Price 90.45 1.68 44.48%

Market Capitalization * 23,787 442

FII 17.31% Enterprise Value ** 59,516 1,106 Mutual Funds 0.25% *Total # shares outstanding: 262.98 million including 35.04 million of CCD’s due for conversion in February 2013 Exchange Rate **Net Debt at INR 35,729 million as on December 31, 2012 FY 10 FY 11 FY 12 9M FY13 Feb 15th, 2013 INR/US$ 47.47 45.53 47.95 54.54 53.81 3 Welspun Group | Welspun Corp Ltd

The Growth Story

8 Revenue Growth - ERW Plant construction in US completed. Secured maiden $ 1,368 mn. 9M 2013 orders - Mandya plant expansion completed

- 350,000 tons LSAW capacity in Anjar commissioned $ 1,872 mn. 2012 - Initiated Mandya Plant Capacity Expansion to 150,000 MT - Initiative of Setting up new ERW Plant 175,000 tons in US

$ 1,762 mn. Saudi Plant - capacity of 300,000 MTPA operational 2011 100,000 MTPA HSAW Plant at Mandya operational

$ 1,548 mn. 2010 Anjar capacity expansion of 350,000 tons and HSAW capacity of 100,000 tons in Mandya initiated

350,000 tons US Spiral Mill commissioned

$ 1,250 mn. 2009 150,000 tons Spiral Mill commissioned

$ 991 mn. 2008 Recognized 2nd largest pipe producer in the world by Financial Times, UK

$ 593 mn. 2007 Anjar Facility , A Key Contributor

$ 413 mn. 2006 Approvals from O&G majors for new facility

$ 231 mn. 2005 New Capacity at Anjar, Gujarat for HSAW & Coating

$ 180 mn. 2004 Merger of coating J.V. with WCL

$ 56 mn. 2001 Pipe Coating in JV with EUPEC, Germany Dahej, Gujarat $ 14 mn. 2000 LSAW, Dahej, Gujarat

$ 5 mn. 1998 HSAW, Dahej, Gujarat

Incorporated 1995 Embarked on a Growth Journey * Annualized on basis of 9M FY13 Revenue Welspun Group | Welspun Corp Ltd

WCL – An Introduction; Pipes & Plates PIPES PLATES LSAW HSAW ERW Coating

- Anjar () - Anjar (India) - Anjar (India) - Anjar (India) - Anjar (India) - Dahej (India) - Dahej (India) - Little Rock, Arkansas - Little Rock, AK (US) (US) - Mandya (India) - Dammam (Saudi Arabia) - Dammam (Saudi Arabia) - Little Rock, Arkansas (US)

Manufacturing Capacities in K MT 3,000 2,425 2,500

2,000 1,500 1,500 1,350

1,000 700 500 375

0 LSAW HSAW ERW Total Pipes Plates 5 Welspun Group | Welspun Corp Ltd

Global Manufacturing Capacities & Products

LSAW Pipes – Dahej & Anjar ERW Pipes - Anjar

HSAW Pipes – Anjar,Dahej & Mandya Pipe Coating – Anjar, US and Dammam 6 Welspun Group | Welspun Corp Ltd

Global Manufacturing Capacities

Plates - Anjar HSAW pipes – Little Rock US

HSAW pipes – Dammam, Saudi Skilled Workforce across all locations

7 Welspun Group | Welspun Corp Ltd Robust Business Fundamentals Strongly Positioned

• Strong presence in 2 of the bigger Oil & Gas markets – North America and Middle Consistent Production & Sales 958 ‘000 MT East; well positioned to take advantage of higher realization margins in Latin 1000 909 814 816 819 835 American markets. 800 656 655 • WCL marquee clients - Exxon Mobil, Kinder Morgan, TCPL and GAIL 600

• Long term contract - TransCanada & Statoil, Framework Agreement - Chevron 400 200 *Current Order book (1,072K MT of pipes and 49K MT of external plates) stands at US$ 1.1 billion 0 FY 10 FY 11 FY 12 9M FY13

Pipe Orders Booked Pipe Orders Executed Closing Pipe Orders Total Pipe Production Total Pipe Sales Year MT (in '000 tons) MT (in '000 tons) MT (in '000 tons) FY 2008-09 807 695 781 FY 2009-10 824 814 791 Consistent Export Revenue FY 2010-11 844 909 726 100% FY 2011-12 1,163 835 1,029 80% 29% 34% 30% 28% 9M FY 2012-13 697 655 1,072 60% *Current Pipe Order Book – Geographical Distribution by Volume 40% 71% 66% 70% 72% India 20% 18% 0% FY10 FY11 FY12 9M FY13*

ROW India

ROW 82%

8 Welspun Group | Welspun Corp Ltd

Global Expansion Global Market Expansion World’s largest diameter steel pipe producers(1) 2007 output (million tonnes) Salzgitter/Europipe* (Germany) 1.3 Iraq Saudi Arabia Welspun (India) 1.0 Spain JFE (Japan) 0.7 Russia

Canada Venezuela Sumitomo (Japan) 0.7

US (Trader Mkt.) Evraz** (Russia) 0.6 China US (Projects) Nippon Steel (Japan) 0.6 Algeria Bangladesh Thailand Mexico Riva (Italy) 0.6 Oman Malaysia Egypt Peru Qatar PSL (India) 0.5 Bolivia Kuwait Indonesia Sudan JSW (India) 0.3 Columbia ArcelorMittal (Luxembourg) 0.2

Stupp (US) 0.1

Tata/Corus (India/UK/Netherlands) 0.1

Others*** 7.3

What Sets WCL Apart From Competition Framework Agreements

• Decade Long Experience • Features - Selected few companies considered for supplies that meet stringent process of qualification • One stop solution - Typically customers with large requirement over a period of time • High Capacity Equipment to Meet Future Demand - Flexibility in pricing terms and continuous business

• Proven execution and strong management experience • Current Framework Agreements - Chevron

WCL was rated 2nd largest Pipe Company in 2007 and has since reached capacity of 2.25 MTPA

Note 1. As reported by Financial Times on April 13, 2008 9 Welspun Group | Welspun Corp Ltd

Welspun’s Worldwide Reach

AMERICAS

EUROPE & CIS

Canada Russia Czech Rep. Spain SOUTH USA EAST ASIA Iraq China AUSTRALIA Qatar Mexico Bahamas Algeria UAE Bangladesh Egypt India Saudi Oman Trinidad & Tobago Venezuela Nigeria Sudan Thailand Malaysia Colombia DOMESTIC Peru Indonesia

Bolivia

Plant Locations Marketing Offices MENA Anjar, India , India Dahej, India Delhi , India Plants Mandya, India Houston, USA Mktg Office Little Rock, USA Dammam, Saudi Arabia Dammam, Saudi Dubai, UAE Countries served

Source: Welspun Corp Ltd. 10 Welspun Group | Welspun Corp Ltd

Relationship with Oil & Gas Majors

AGIP, Jordan NTPC, India Accreditation Process Al WASIT, UAE ONGC, India BECHTEL, US PETRO CHINA A significant entry barrier BRITISH GAS PETRONAS, Malaysia BRITISH PETROLEUM PDO, Oman CHINA NATIONAL PETROLEUM CORPORATION PGN, Indonesia CPMEC, China QATAR PETROLEUM Approval from CHEVRON, US (Framework Agreement) LIMITED, India major domestic DOW, US SAIPEM, Italy / international ELPASO, US SAUDI ARAMCO oil and gas companies EGYPTIAN GENERAL PETROLEUM CORPORATION SHELL, US 2 – 3 years ENTERPRISE, US STOLT OFFSHORE – Acergy, UK Seeking API EXXON-MOBIL (GOLDEN PASS PIPELINE), US SONATRACH, Algeria approval GROUP FIVE , Saudi Arabia TOTAL, France 1 year Setting up plant GAIL, India TECHNIP, France 1-2 years GASCO, UAE TRANSCANADA (Long Term Contract) GASCO, Egypt UNOCAL, US GAZPROM, Russia (STROYTRANSGAZ) PERU LNG, US (HUNT OIL) KINDER MORGAN, US VIETSOPETRO, Russia/Vietnam 3 - 5 years N.A.O.C. - Nigeria SWCC, India NPCC, UAE

11 Welspun Group | Welspun Corp Ltd Consolidated Financial Snapshot

Balance Sheet Extract INR million Particulars FY11 FY12 9M FY13 NET WORTH 33,735 49,139 48,914 Gross Debt 38,067 53,407 60,374 Cash & Liquid Investments 21,875 29,686 24,644 NET DEBT 16,192 23,721 35,729 Net Fixed Assets 41,731 67,322 66,747 Net Current Assets 5,793 5,305 12,113

Profitability Extract INR million Particulars FY10 FY11 FY12 9M FY13 Revenue 73,637 80,221 89,766 74,622 Reported EBITDA 13,372 13,784 11,247 6,379 Operational EBITDA 13,186 14,461 11,120 5,855 Cash PAT 9,055 9,699 6,192 2,171 Note: 9M FY13 EBITDA is impacted by foreign exchange provision of Rs. 1,589 million

Ratios Particulars FY11 FY12 9M FY13 Fixed Asset Coverage 1.24 1.48 1.20 Net Debt / EBITDA* 1.12 2.13 4.58 Net Debt / Net Worth 0.48 0.48 0.73 * 9M FY13 EBITDA Annualized

12 Welspun Group | Welspun Corp Ltd Consolidated Financial Snapshot

Balance Sheet Extract US$ Million Particulars FY11 FY12 9M FY13 Net Worth 756 966 890 Gross Debt 854 1,050 1,098 Cash & Cash Equivalents 490 584 448 Net Debt 363 466 650 Net Fixed Assets 936 1,323 1,214 Net Current Assets 130 104 220

Profitability Extract US$ Million Particulars FY10 FY11 FY12 9M FY13 Revenue 1,551 1,762 1,872 1,368 Reported EBITDA 282 303 235 117 Operational EBITDA 278 318 232 107 Cash PAT 191 213 129 40 Note: 9M FY13 EBITDA is impacted by foreign exchange provision of $29.13 million

Exchange Rates Year FY10 FY11 FY12 9M FY13 Avg. INR/US$ 47.47 45.53 47.95 54.54 Period Ending INR/US$ 44.9 44.60 50.87 54.99

13 Welspun Group | Welspun Corp Ltd

Q3 FY13 Highlights

Key Snapshot Consolidated Highlights In INR Mn Particulars Q3 FY13 Q3 FY12 Q2 FY13 • Revenue Growth at 38% QoQ Sales 28,519 24,671 20,606 Reported EBITDA 1,840 1,585 2,171 • Adjusted Cash PAT up 73% QoQ EBITDA (Adjusted)# 2,518 3,408 1,432 • 1.1 million MT outstanding pipe order book Finance Cost 1,386 1,245 1,130 Depreciation/ Amortization 1,136 984 1,030 • Sales volume at 295KT in Q3FY13 – highest PAT (Adjusted)# (348) 531 (508) quarterly figure in Company history Cash PAT (Adjusted)# 866 1,116 500 #Total foreign exchange provision of Rs. 678 million was booked in Q3 FY13 and Rs. 1,589 million for 9M FY13 Status of Projects Production and Sales Volume • Construction of ERW Plant in US completed Volume (in KMT) Q3 FY13 Q3 FY12 • Trial runs in progress Production • Received API certification Pipes 258 207 Plates & Coils 98 154 • Maiden orders booked Sales Pipes 295 202

Plates & Coils* 105 139 *Includes internal Sales

14 Welspun Group | Welspun Corp Ltd

Investment Rationale - Strong Industry Outlook Relatively Few Major Players International Demand Outlook 2012 – Share of Expected Demand 2012 - 2017 2017 (Future Pipeline Projects) • Highly capital intensive industry with high barriers to entry Australasia • Niche markets effectively captured by Welspun Business Total Potential 5% Length Quantity (US$ • Reliability and reputation for excellence are paramount (1) Region Projects (kms) (MMT) Bn) North Asia • Brighter Prospects for the industry with oil prices at North America 221 68,187 14 80 America sustainable levels 21% 23% Latin America 55 33,500 7 52 Latin Global Demand Europe 187 60,915 12 116 America Europe 11% • Business potential : US$ 489 bn (Source Simdex ) Africa 59 24,349 5 31 Middle East 13% 19% Middle East 125 38,912 8 63 • Shale Gas in US: 13.6 trn cu ft by 2035 from 5.0 trn cu ft in Africa 2010 (source : EIA Energy Outlook 2012) Asia 115 63,791 13 116 8%

Australasia 75 17,978 3 31 • Replacement of the old pipelines in US Source: www.simdex.com Aug 2012 data update • US oil boom and Alaska Pipeline project expected to Total 837 307,632 62 489 Proposed pipeline of GAIL Source: www.simdex.com August 2012 data update significantly boost demand Phase I (Under Execution) Length Cost Add. Cap Domestic Market Size Name of Pipeline (Kms) (Rs Cr) (MMSCMD) Domestic Demand Business DVPL Ph -II / Vijaypur Dadri 1,109 10,764 80 Total Length Quantity Potential • Low pipeline penetration provides huge potential Company (kms) (KMT)(1) (US$ Bn)(2) Dadri - Bawana - Nangal 594 2,358 31 • PNGRB GAIL* 6,642 1,328 1.6 Chainsa - Jhajjhar - Hissar 349 1,315 35 - Awarded Rs. 8.5 bn J&K project to GSP consortium, Sub Total 2,052 14,437 146 RGTIL 2,628 526 0.6 - Approved 1,104 km Kochi – Koottand – Bangalore- Mangalore Phase II (Approved in 2009) Length Cost Add. Cap in 2012. Name of Pipeline IOCL 4,366 874 1.0 (Kms) (Rs Cr) (MMSCMD) • City Gas Distribution – 200 Cities by 2015 Jagdishpur - Haldia 2,050 7,596 32 Total 13,636 2,728 3.2 • Liquefied Natural Gas (LNG) terminals – 18.6 MTPA Dabhol - Bangalore 1,414 4,994 16

th Kochi - Mangalore - Bangalore 1,126 3,263 16 • Water Infrastructure projects under the 12 Plan and JNNURM Source: *GAIL India Ltd Presentation May 2012 Source: Basic Stats Report – www.petroleum.nic.in Sub Total 4,590 15,853 64 Grand Total 6,642 30,290 210

Welspun is well placed, with global clients and state-of-the-art technology, to capitalize Source GAIL India Investor Presentation , May 2012 on this opportunity

Source: Simdex and Industry Sources 1. Conversion rate of 200 tons/ km 2. As illustrated in the adjoining tables

15 Welspun Group | Welspun Corp Ltd

Investment Rationale – Robust company fundamentals

• Outlook for the pipe business remains positive amidst challenges in the global economy. • Continued new pipe orders both locally and internationally during such challenging times on the back of its strong customer reach and proven execution track record. • Key demand markets continue to be North America, Middle East and India; potential for other markets in Latin America, Africa and Asia driven by strong growth in energy and oil demand. • With tremendous development activities in US leading to it becoming self reliant on energy in the next few years, countries like Canada which have been dominant supplier of Oil and Gas to US are exploring export of their products to the Asian countries. This would lead to higher pipe demand

• Key differentiating factor going forward - Ability to offer a portfolio of high quality products to customers.

• Confident of positive growth through higher utilization levels across manufacturing capacities. • Saudi and US plants booked till November 2013. • Strong customer relationship enables repeat orders from key customers.

• Offering complete solution for any Line Pipe requirements making WCL the One-Stop-Solution

16 Welspun Group | Welspun Corp Ltd

Proven and Experienced Management Team

Mr. B.K. Goenka is the Chairman, and the chief architect Mr. B.R. Jaju serves as Director & CFO. A Chartered of the Welspun Group. Today, with his entrepreneurial accountant by profession, member of Company Secretary (FCS), ability and professionalism, he has built up one of the most as well as a Law Degree (LL.B). He has a rich experience over admired business conglomerates 30 years in finance and global M&A activities. Mr. Jaju has been awarded 3 times as Best Performing CFO in the year 2003, 2005 and 2006, by the most credible nationally renowned jury. Mr. R.R. Mandawewala is the Group Managing Director, Mr. Akhil Jindal serves as Director, Group Strategy & a key contributor in Welspun’s journey. A Chartered Finance. He graduated with an Engineering Degree , MBA Accountant by profession and with over 25 years of from Indian Institute of Management, Bangalore. Mr. Jindal experience, he has expertise varying from Textiles to SAW is responsible for strategic inorganic/organic initiatives pipes. within the Group and has spearheaded large fund raisings, cross border acquisitions, private equity raisings and financial closure of projects exceeding over US$ 1 bn. Mr. Braja K Mishra is the Managing Director of Welspun Corp and is a prominent figure in the industry with long and Mr. Prashant Mukherjee serves as Director of Welded Pipes. varied experience. Has over 25 years of experience and A Graduate in Science (Engineering, Mech) with over 24 years posseses immense critical know-how about the pipe and experience mostly in the Oil & Gas Pipe Industry, Mr. Mukherjee plate industry has been instrumental in implementing expansion projects in the Company

Mr. Mintoo Bhandari, serves as Director on Board (Nominee of a shareholder) in WCL. Mr. Bhandari also Mr. Vipul Mathur is the Director Sales & Marketing (Pipes). serves on the board of directors of SOURCECORP, Dish TV A Science Graduate and Masters in Business Administration India Limited and Wire & Wireless (India) Ltd. Mr. (MBA) in Marketing, he has a rich experience of over 16 years in Bhandari graduated with an BS in Mechanical Engineering the Oil & Gas Pipe Industry from MIT and with an MBA from the Harvard Business School. Mr. David J. Delie serves as President Welspun Tubular Mr. Akbar Umatiya is Vice President & Unit Head of LLC. A graduate in Science (Electrical Engineering) and a Welspun Middle East LLC (Saudi Plant) A technocrat Masters Degree in Engineering Management from the Professional having more than 26 years of versatile experience in University of Pittsburgh, he has an extensive 33-year various fields like Operations, Project Executions and Marketing background in the steel and pipe industry. Mr Delie has in India and Overseas. He has proven capability to perform in served on the Board of Directors of Berg Steel Pipe Corp., International environment studded with a mix of diverse cultures EB Pipe Coating, Inc., the American Iron & Steel Institute and to develop Technical and professional abilities for team (AISI). building to enhance superior quality work. 17 Welspun Group | Welspun Corp Ltd Journey to become the most respected Pipe Company in the World

How Welspun will sustain

How Welspun reached here • Zero Harm - Safety

• Niche markets -deep offshore/ sour • Technology pipelines

• Product profile • Stringent client specifications

• Approvals • Local presence in key markets

• Accreditations • Highly trained workforce

• Serving challenging orders • Zero Tolerance – Quality Standard • People Humble beginnings Today The future

18 Welspun Group | Welspun Corp Ltd

CSR and Environmental Leadership When Industry Cares…. The Community Smiles

CSR Initiatives C O O R U T E Empowerment & Education Environment Health R F E O A C C U H S Implementation Mediums

Tie-ups with Non Governmental Welspun Programs Organizations / Developmental Facilitating Agencies/ Institutions Government Initiatives

19 Welspun Group | Welspun Corp Ltd Disclaimer

Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of Welspun Corp. Limited (“WCL"), its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, inter alia including future changes or developments in WCL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer invitation, or a solicitation of any offer, to purchase or sell, any securities of WCL and should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or purchase any of WCL's securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation thereto shall be deemed to constitute an offer of or an invitation by or on behalf of WCL to subscribe for or purchase any of its securities. WCL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. WCL assumes no responsibility to publicly amend, modify or revise any forward looking statements contained herein, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. WCL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER INVITATION OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY SHARES OR ANY OTHER SECURITY OF WCL. This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer or solicitation of any offer of securities for purchase or sale in or into the United States, Canada or Japan.

20 Welspun Group | Welspun Corp Ltd Thank You

For further details, please contact:

Akhil Jindal Navin Agarwal Director – Group Strategy and Finance VP - Group Strategy and Finance Email: [email protected] Email: [email protected]

Company Website: http://www.welspuncorp.com

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