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Q4 FY’16 Industry Update & Key Performance Highlights 4 th May, 2016

Q4 FY’16

Industry Update &
Industry Update &
Q4 FY’16 Industry Update & Key Performance Highlights 4 th May, 2016

Key Performance Highlights

4 th May, 2016
4 th May, 2016
DISCLAIMER This presentation may contain certain forward looking statements concerning JSPL’s future business
DISCLAIMER
DISCLAIMER
DISCLAIMER This presentation may contain certain forward looking statements concerning JSPL’s future business

This presentation may contain certain forward looking statements concerning JSPL’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such

forward looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. We do not undertake to update our forward-looking statements.

This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in JSPL or any of it’s subsidiary undertakings or any other invitation or inducement to engage in investment activities, neither shall this

presentation nor the fact of it’s distribution form the basis of, or be relied on in

connection with, any contract or investment decision. Few numbers in this presentation

are purely indicative & provisional and could change later.

Analyst Presentation

2

Q4 FY’16 STEEL OUTLOOK PRESENTATION OUTLINE INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL

Q4

FY’16

STEEL OUTLOOK

PRESENTATION OUTLINE
PRESENTATION OUTLINE

INDUSTRY

DEVELOPMENTS

BRIEF

BACKGROUND

OPERATIONAL

PERFORMANCE

STEEL OUTLOOK PRESENTATION OUTLINE INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 3

FINANCIAL

PERFORMANCE

STEEL OUTLOOK PRESENTATION OUTLINE INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 3
India: Only country having positive growth rate of Crude production among Top 8 By end
India: Only country having positive growth rate of Crude production among Top 8 By end

India: Only country having positive growth rate of Crude production among Top 8

By end 2016, India is likely to overtake Japan as the second largest steel producer in the world.

CY 14 CY 15 Q1 (CY 15) Q1 (CY 16) Global Crude 823 198 production
CY 14
CY 15
Q1 (CY 15)
Q1 (CY 16)
Global Crude
823
198
production Rank
2.3%
3.2%
#1 China
192
804
27
111
5%
3.6%
#2 Japan
105
26
90
23
2.6%
1.8 %
22.5
#3 India
87
88
20
10.5%
1.3%
79
19.6
#4 USA

Source: WSA

4

The Industrial Health Overall IIP Trend 12.0 9.8 10.0 8.0 6.3 6.0 4.1 3.8 3.6

The Industrial Health

Overall IIP Trend 12.0 9.8 10.0 8.0 6.3 6.0 4.1 3.8 3.6 3.4 4.0 2.5

Overall IIP Trend

Overall IIP Trend 12.0 9.8 10.0 8.0 6.3 6.0 4.1 3.8 3.6 3.4 4.0 2.5 2
12.0 9.8 10.0 8.0 6.3 6.0 4.1 3.8 3.6 3.4 4.0 2.5 2 2.0 0.0
12.0
9.8
10.0
8.0
6.3
6.0
4.1
3.8
3.6
3.4
4.0
2.5
2
2.0
0.0
Apr'15 May'15 Jun'15 July'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16
-2.0
-1.26
-1.5
-4.0
-3.2
Mining Sec Growth (y-o-y, %)
-2.0 -1.26 -1.5 -4.0 -3.2 Mining Sec Growth (y-o-y, %) Mining 6 5 4.7 5 3.8

Mining

-1.26 -1.5 -4.0 -3.2 Mining Sec Growth (y-o-y, %) Mining 6 5 4.7 5 3.8 4
6 5 4.7 5 3.8 4 3 2.8 3 2 1.3 1.2 1 0.6 2.3
6
5
4.7
5
3.8
4
3
2.8
3
2
1.3
1.2
1
0.6
2.3
2.9
0
Apr'15 May'15 Jun'15 July'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16
-1
-0.5
Mining Sec Growth (y-o-y, %)
Feb'16 -1 -0.5 Mining Sec Growth (y-o-y, %) Manufacturing 12 10.6 10 8 6.9 6 4.2
Manufacturing 12 10.6 10 8 6.9 6 4.2 4 5.4 2.6 2.2 2 4.7 0.7
Manufacturing
12
10.6
10
8
6.9
6
4.2
4
5.4
2.6
2.2
2
4.7
0.7
0
-2
-2.4
-4
-2.8
-4.4
-6
Electricity
11.4
12
9.6
9
10
8
6.6
6
5.6
6
3.5
3.2
4
1.3
2
0.7
0
-2
-0.5
Electricity Sec Growth (y-o-y, %)
Manufacturing Growth (y-o-y, %)
Green Shoots for Steel Industry India’s per capita steel consumption of 59.4Kg, is way below

Green Shoots for Steel Industry

Green Shoots for Steel Industry India’s per capita steel consumption of 59.4Kg, is way below world

India’s per capita steel consumption of 59.4Kg, is way below world avg of 217 Kg in 2014.

of 59.4Kg, is way below world avg of 217 Kg in 2014. Domestic Steel Demand Increasing

Domestic Steel Demand Increasing during April-Feb ‘16

Finished Steel: Consumption stood at 73 mt, a growth of 4.6% (y-o-y)

Fall in Imports post February due to MIP & rising international prices (10 mln MT imported till Feb)

Increased Domestic Raw material availability :

Iron Ore availability increased by 20% to estimated 155 Mt in FY 15-16

More then 62 Mt additional Iron ore mining capacity came up in FY 15-16.

Coal (from CIL & SCCL)

availability increased by 9% (50Mt)

to

597 Mt in FY

15-16

Government’s Construction & Infrastructure led Growth Model:

Steel is central to the idea of Urbanisation which is the focus of all programmes announced by the Government of India

Union Budget 2016-17: Govt. to spend Rs 2,18,000 Crores on roads, railways

How the Indian Steel Industry fared during April ‘15 - Feb‘16 (Qty :million MT) FY
How the Indian Steel Industry fared during April ‘15 - Feb‘16 (Qty :million MT) FY

How the Indian Steel Industry fared during April ‘15-Feb‘16

(Qty :million MT) FY ‘16 March '16 change change Qty (y-o-y) Qty (m-o-m) Production: Crude
(Qty :million MT)
FY ‘16
March '16
change
change
Qty
(y-o-y)
Qty
(m-o-m)
Production: Crude Steel
89.8
0.9%
8.059
8 %
Finished Steel (Non Alloy+Alloy)
Import
11.7
25.7%
0.997
9.3%
Export
4.08
(27)%
0.350
15.9%
Real Consumption
80.5
4.6%
8.143
23.7%

Crude production marginally increased by 1% during FY ’16

Finished Steel Demand :

o

April – March ‘16 : India’s Consumption of finished steel grow by 4.6 % (y-o-y)

o

While steel demand increases by 24% During March ‘16 (m-o-m)

Imports :

o April – March ‘16: increased by 20.4 % (y-o-y),

Exports :

o April – March ‘16: Exports down by 32 % (y-o-y),

Source: JPC

PRESENTATION OUTLINE STEEL OUTLOOK Q4 FY’16 INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL
PRESENTATION OUTLINE
PRESENTATION OUTLINE

STEEL OUTLOOK

Q4

FY’16

INDUSTRY

DEVELOPMENTS

BRIEF

BACKGROUND

OPERATIONAL

PERFORMANCE

OUTLINE STEEL OUTLOOK Q4 FY’16 INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 8

FINANCIAL

PERFORMANCE

OUTLINE STEEL OUTLOOK Q4 FY’16 INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 8
INDUSTRY UPDATE STEEL SECTOR 9
INDUSTRY UPDATE STEEL SECTOR 9

INDUSTRY UPDATE

STEEL SECTOR

Domestic Iron Ore Prices depicted a declining trend in FY 15-16 However prices firmed up

Domestic Iron Ore Prices depicted a declining trend in FY 15-16

Iron Ore Prices depicted a declining trend in FY 15-16 However prices firmed up during Q4

However prices firmed up during Q4 FY ‘16

Iron Ore Lump Prices

Odisha’s 10-30mm lumps prices decreased by

- 55% since Apr’15 (from Rs.4800 to Rs.2300 /MT)

Chhattisgarh’s 10-40 mm lumps prices decreased by

- 38% since Apr’15 (from 4040 to 2520/MT)

5200 Chhattisgarh DR CLO (10- 40mm, Fe 65.5%) 4800 4800 4575 4500 Odisha BF Lumps
5200
Chhattisgarh DR CLO (10-
40mm, Fe 65.5%)
4800
4800
4575 4500
Odisha BF Lumps (10-30mm,
4400
Fe 62- 63%)
4300
4000
3840
4040
3840
3600
3840 3840
3200
3130
2900
2800
28002800
2520
2400
2215
2180
2250
2200
2200
2300
2000
1600
Price in Rs/t (ex-mines)

Iron Ore Fines Prices

Odisha’s iron ore fines prices decreased by

- 28% since Apr’15 (from Rs.1800 to 1300/MT)

Chhattisgarh’s iron ore fines prices decreased by - 27% since Apr’15 (from Rs. 2546 to Rs. 1860/MT)

Odisha Fines (0-10 mm, Fe 63%)by - 27% since Apr’15 (from Rs. 2546 to Rs. 1860/MT ) 3000 Chhattisgarh Fines (0-10

3000 Chhattisgarh Fines (0-10 mm, Fe 64%) 2700 2546 2400 2243 2100 1960 1860 1800
3000
Chhattisgarh Fines (0-10 mm, Fe
64%)
2700
2546
2400
2243
2100
1960
1860
1800
1800
1560
1560 1710
166016601660
1650
1500
1600
1600
1560
1525
1430
1450
1200
1300
1300
900
Price in Rs/t (ex-mines)

Source: Steel Mint

Odisha’s ex-mines prices incl royalty excl DMF, Chhattisgarh’s ex-mines prices exclude royalty

10

1-Apr-15

1-Oct-15

1-Aug-15

1-Jun-15

1-Jul-15

1-Nov-15

1-Sep-15

1-May-15

1-Dec-15

1-Jun-15 1-Jul-15 1-Nov-15 1-Sep-15 1-May-15 1-Dec-15 International Raw Material Prices ($ / MT) International
1-Jun-15 1-Jul-15 1-Nov-15 1-Sep-15 1-May-15 1-Dec-15 International Raw Material Prices ($ / MT) International

International Raw Material Prices ($ / MT)

International Coking Coal Prices

increased by 5% since Apr’15

Premium Low Volatile Hard Coking Coal Prices

110 98 100 93 90 80 78 70 74 60 50 Prices in USD/t (
110
98
100
93
90
80
78
70
74
60
50
Prices in USD/t ( FOB Aus,)

Iron Ore Fines (Fe 62% CFR China)

increased by 27% since Apr’15

International Iron Ore Fine Prices (Fe 62%)

80 70 60 60 55 63 50 50 40 39 30 20 Prices (USD/t) CFR
80
70
60
60
55
63
50
50
40
39
30
20
Prices (USD/t) CFR N.China
1-Jan-16 1-Feb-16 1-Mar-16 1-Apr-16
1-Jan-16
1-Feb-16
1-Mar-16
1-Apr-16

Prices ($/t) FOB Australia Prices ($/t) CFR N.China, delivered at Tianjin port Source: Platts

11

INDUSTRY UPDATE POWER SECTOR 12
INDUSTRY UPDATE POWER SECTOR 12

INDUSTRY UPDATE

POWER SECTOR

Industry Update - Coal & Power Coal Production Coal Imports Long Term Coal Linkage UMPP

Industry Update - Coal & Power

Industry Update - Coal & Power Coal Production Coal Imports Long Term Coal Linkage UMPP Revised

Coal

Production

Coal Imports Long Term Coal Linkage
Coal Imports
Long Term
Coal Linkage
UMPP Revised Documents
UMPP
Revised
Documents

Coal India supplied 408 MT of fuel to the power sector in 2015-16, up 6% over the previous year

CIL’s Overall coal production was 535MT (growth of 8.6%) against a target of 550MT

Sluggish demand has resulted in piling up of coal stock at nearly 58MT

India imported 182MT in 2015-16, down 16% from 216MT in the previous year, saving Rs 28,000 Cr in foreign exchange

MoU with power companies for coal linkage which expired on March 31, will not be extended beyond June 30’16. And plants need to procure coal through process of special forward e-auction of coal for power sector

A new policy might be formulated by MoC, GoI to allocate coal linkages to States and DISCOMS,

and they could invite tariff based bidding on the allocated linkage.

The Union Cabinet is likely to give green signal soon to standard bid document which will facilitate

auctioning of domestic coal-based four or five Ultra Mega Power Projects, entailing an investment of Rs 30,000 Cr each.

Installed Capacity in India (Mar 2016) Installed Capacity (GW) in India 268 GW in FY15

Installed Capacity in India

(Mar 2016)

Installed Capacity (GW) in India 268 GW in FY15 298.1 210.7 38.8 42.8 5.8 Thermal
Installed Capacity (GW) in India
268 GW in
FY15
298.1
210.7
38.8
42.8
5.8
Thermal
Nuclear
Hydro
Renewables
Total

Generation Capacity Addition in MWs Y-o-Y

6.25% Increase 23976 22566 FY 15 FY 16
6.25% Increase
23976
22566
FY 15
FY 16

Source: CEA

6.25% Increase 23976 22566 FY 15 FY 16 Source: CEA Installed Capacity Portfolio Renewables 14% Thermal

Installed Capacity Portfolio

Renewables

14%
14%
Thermal 69%
Thermal
69%

Hydro

15%

Nuclear

2%

Wind 26.4 Renewables (GW) Portfolio Bio Mass Small Solar 6.8 4.9 Hydro 4.3
Wind 26.4
Renewables (GW) Portfolio
Bio Mass
Small
Solar 6.8
4.9
Hydro 4.3
Growth of Renewables in India MW Small Hydro Biomass Solar Wind 40000 35000 4274 4055
Growth of Renewables in India MW Small Hydro Biomass Solar Wind 40000 35000 4274 4055
Growth of Renewables in India MW Small Hydro Biomass Solar Wind 40000 35000 4274 4055
Growth of Renewables in India
MW
Small Hydro
Biomass
Solar
Wind
40000
35000
4274
4055
4943
30000
3804
4419
3411
25000
3643
4014
6763
3744
3601
20000
2913
3135
2632
2605
1686
15000
941
10000
32
6
5000
10648
12807
16897
18485
21136
23444
26769
0
2010
2011
2012
2013
2014
2015
2016
23444 26769 0 2010 2011 2012 2013 2014 2015 2016 R E S T y p

RES Type

% CAGR since 2012

WIND

12 %

SOLAR

63 %

BIOMASS

12 %

SMALL HYDRO

5.7 %

Source: CEA

Target for 2022

Target for

FY 16

Additions in

FY 16

WIND

60 GW 2.4 GW
60 GW
2.4 GW
3.4 GW
3.4 GW

SOLAR

100 GW 1.4 GW
100 GW
1.4 GW
3.08 GW
3.08 GW
Changing Generation Mix Capacity Additions 2015 Vs 2016 2015 (MW) Wind 2308 Solar 1112 Thermal,

Changing Generation Mix

Capacity Additions 2015 Vs 2016

2015 (MW)

Wind 2308 Solar 1112 Thermal,
Wind 2308
Solar 1112
Thermal,

20830

2015 Vs 2016 2015 (MW) Wind 2308 Solar 1112 Thermal, 20830 2016 (MW) Wind 3414 Solar

2016 (MW)

Wind 3414 Solar 3018 Thermal, 22460
Wind 3414
Solar 3018
Thermal,
22460
Transmission Sector 600 500 400 300 200 100 0 Generation Capacity (GW) Tr (1000 Kms)-

Transmission Sector

Transmission Sector 600 500 400 300 200 100 0 Generation Capacity (GW) Tr (1000 Kms)- 66kV

600

500

400

300

200

100

0

Transmission Sector 600 500 400 300 200 100 0 Generation Capacity (GW) Tr (1000 Kms)- 66kV

Generation Capacity (GW)

Sector 600 500 400 300 200 100 0 Generation Capacity (GW) Tr (1000 Kms)- 66kV and

Tr (1000 Kms)- 66kV and above

100 0 Generation Capacity (GW) Tr (1000 Kms)- 66kV and above Gen Growth Tr. Growth Transmission

Gen Growth

Capacity (GW) Tr (1000 Kms)- 66kV and above Gen Growth Tr. Growth Transmission Network growth has

Tr. Growth

Transmission Network growth has not kept pace with Growth in the Installed

Generation Capacity

51.0% 25.9%
51.0%
25.9%

24%

22.5% 27.2%
22.5%
27.2%
Generation Capacity 51.0% 25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992

19.5%

Generation Capacity 51.0% 25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992

17.9%

17.8%

Capacity 51.0% 25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992 Mar

49.2%

51.0% 25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992 Mar 1997
51.0% 25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992 Mar 1997

21.6%

25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992 Mar 1997 Mar
25.9% 2 4 % 22.5% 27.2% 19.5% 17.9% 17.8% 49.2% 21.6% Mar 1992 Mar 1997 Mar

Mar 1992

Mar 1997

Mar 2002

Mar 2007

Mar 2012

Mar 2016

Source: CEA

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

Major Highlights (Mar 2016) CIL Production in Million Tonnes 8.6 % Increase 535 494 FY

Major Highlights (Mar 2016)

CIL Production in Million Tonnes

8.6 % Increase 535 494 FY 15 FY 16
8.6 % Increase
535
494
FY 15
FY 16

Electricity Generation in BUs

5.6 % Increase Y-o-Y 1107.0 1048.0 FY 15 FY 16
5.6 % Increase Y-o-Y
1107.0
1048.0
FY 15
FY 16

Source: CEA

% Increase Y-o-Y 1107.0 1048.0 FY 15 FY 16 Source: CEA Imported Coal as % of

Imported Coal as % of Total Requirement

A. Imported (MT)

B. Domestic (MT)

% Ratio - A/(A+B)

FY 16

185 680
185
680
21.3 %
21.3 %
Energy Deficit Peak Deficit 0.0% -0.5% -1.5% -1.7% -1.0% -2.1% -1.5% -3.4% -2.0% -2.5% -3.0%
Energy Deficit
Peak Deficit
0.0%
-0.5%
-1.5%
-1.7%
-1.0%
-2.1%
-1.5%
-3.4%
-2.0%
-2.5%
-3.0%
-3.5%
-4.0%
Mar-15
Mar-16
Transmission & Distribution All India T&D Losses (in %) Provisional Data 35% 30.4% 28.7% 30%

Transmission & Distribution

Transmission & Distribution All India T&D Losses (in %) Provisional Data 35% 30.4% 28.7% 30% 27.2%
All India T&D Losses (in %) Provisional Data 35% 30.4% 28.7% 30% 27.2% 25.0% 25.4%
All India T&D Losses (in %)
Provisional Data
35%
30.4%
28.7%
30%
27.2%
25.0%
25.4%
24.0%
23.7%
23.0%
25%
21.5%
20.8%
20%
15%
10%
5%
0%
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14*
2014-15*

T&D Losses Comparison (FY12 )

20.8% 16.6% 8.9% 8.3% 6.5% 6.7% 4.5% 3.5%
20.8%
16.6%
8.9%
8.3%
6.5%
6.7%
4.5%
3.5%

Source: CEA

Transmission Lines Added (C-Kms)

27% Increase 28114 22101 FY 15 FY 16
27% Increase
28114
22101
FY 15
FY 16
Capacity Additions and Reducing % PLF Fall in PLF is majorly due to inefficient State

Capacity Additions and Reducing % PLF

Capacity Additions and Reducing % PLF Fall in PLF is majorly due to inefficient State Utilities

Fall in PLF is majorly due to inefficient State Utilities

Central State Private

Central

Central State Private

State

Central State Private

Private

80% 75% 76% 60% 64% 59% 55% 55% 40% 20% 0% Mar-2015 Mar-2016
80%
75%
76%
60%
64%
59%
55%
55%
40%
20%
0%
Mar-2015
Mar-2016
Total Capacity % PLF INSTALLED CAPACITY (GWs) vs PLF (%) 350 100% 300 80% 250
Total Capacity
% PLF
INSTALLED CAPACITY (GWs) vs PLF (%)
350
100%
300
80%
250
77%
78%
73%
75%
60%
200
70%
66%
66%
62%
150
40%
100
20%
50
149
160
174 200
224 245
272 298
0
0%
2009
2010
2011
2012
2013
2014
2015
2016

Source: CEA

PRESENTATION OUTLINE
PRESENTATION OUTLINE

STEEL OUTLOOK

INDUSTRY

DEVELOPMENTS

Q4

’FY16

BRIEF

BACKGROUND

OPERATIONAL

PERFORMANCE

OUTLINE STEEL OUTLOOK INDUSTRY DEVELOPMENTS Q4 ’FY16 BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 21

FINANCIAL

PERFORMANCE

OUTLINE STEEL OUTLOOK INDUSTRY DEVELOPMENTS Q4 ’FY16 BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 21
OUTLINE STEEL OUTLOOK INDUSTRY DEVELOPMENTS Q4 ’FY16 BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE 21
Business Segments Steel Power Mines & Global Construction Minerals Ventures Material &

Business Segments

Business Segments Steel Power Mines & Global Construction Minerals Ventures Material &

Steel

Power

Mines &

Global

Construction

Minerals

Ventures

Material & Solution

Current Capacities – Domestic & Global
Current Capacities – Domestic & Global
& Solution Current Capacities – Domestic & Global • Domestic **Includes 600 MW - synchronized &

Domestic **Includes 600 MW - synchronized & will be commissioned in FY16

Copyright @ 2015 Jindal Steel & Power Limited

22

Steel Capacities across Life Cycle Iron Making (6.75 MTPA) DRI 3.12 MTPA BF 2.13 MTPA

Steel Capacities across Life Cycle

Steel Capacities across Life Cycle Iron Making (6.75 MTPA) DRI 3.12 MTPA BF 2.13 MTPA HBI
Iron Making (6.75 MTPA) DRI 3.12 MTPA BF 2.13 MTPA HBI 1.50 MTPA
Iron Making
(6.75 MTPA)
DRI 3.12 MTPA
BF 2.13 MTPA
HBI 1.50 MTPA
Liquid Steel (6.75 MTPA) SMS 6.75 MTPA
Liquid Steel
(6.75 MTPA)
SMS 6.75 MTPA
Finished Steel (6.55 MTPA) WRM 0.60 MTPA RUBM 0.75 MTPA MLSM 0.60 MTPA Plate Mill
Finished Steel
(6.55 MTPA)
WRM 0.60 MTPA
RUBM 0.75 MTPA
MLSM 0.60 MTPA
Plate Mill 2.20 MTPA
BRM 2.4 MTPA

BRM in Angul 1.4* - Commissioning in 1QFY17

BRM 2.4 MTPA BRM in Angul 1.4* - Commissioning in 1QFY17 Effective Finished Steel 8.05 MTPA

Effective Finished Steel 8.05 MTPA

** To be commissioned

Copyright @ 2015 Jindal Steel & Power Limited

23

Raigarh (Chhattisgarh) BF 1.67 MTPA DRI 1.32 MTPA SMS 3.25MTPA Plate Mill 1.00 MTPA RUBM
Raigarh
(Chhattisgarh)
BF 1.67
MTPA
DRI 1.32
MTPA
SMS
3.25MTPA
Plate Mill
1.00 MTPA
RUBM 0.75
MTPA
MLSM 0.60
MTPA
CPP 839
MW
1.00 MTPA RUBM 0.75 MTPA MLSM 0.60 MTPA CPP 839 MW ** To be commissioned Mining

** To be commissioned

Mining Iron Ore 3.11 MTPA Coal Overseas 6.20 MTPA
Mining
Iron Ore
3.11
MTPA
Coal
Overseas
6.20
MTPA

Detailed plant wise capacities

Barbil (Odisha) Pellet Plant 9 MTPA
Barbil
(Odisha)
Pellet
Plant
9 MTPA
Patratu (Jharkhand) WRM 0.60 MTPA Rebar Mill 1.0 MTPA
Patratu
(Jharkhand)
WRM
0.60
MTPA
Rebar
Mill 1.0
MTPA

Hot Metal

WRM 0.60 MTPA Rebar Mill 1.0 MTPA Hot Metal Angul (Odisha) CGP 225,000 Nm3/Hr Capacity in
Angul (Odisha) CGP 225,000 Nm3/Hr Capacity in DRI 1.8 MTPA deail SMS 1.5 MTPA Plate
Angul
(Odisha)
CGP
225,000
Nm3/Hr
Capacity in
DRI 1.8
MTPA
deail
SMS 1.5
MTPA
Plate Mill
1.2 MTPA
CPP 810
MW

Power

JPL Tamnar 2800 MW 600 MW*
JPL
Tamnar
2800
MW
600
MW*
1.2 MTPA CPP 810 MW Power JPL Tamnar 2800 MW 600 MW* Finished Steel Copyright @
1.2 MTPA CPP 810 MW Power JPL Tamnar 2800 MW 600 MW* Finished Steel Copyright @

Finished Steel

Copyright @ 2015 Jindal Steel & Power Limited

24

JSPL diversifies into Value added products – will boost EBITDA margins Cement Cut & Bend
JSPL diversifies into Value added products – will boost EBITDA margins Cement Cut & Bend

JSPL diversifies into Value added products will boost EBITDA margins

into Value added products – will boost EBITDA margins Cement Cut & Bend Welded Mesh Speed

Cement

Value added products – will boost EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor

Cut & Bend

– will boost EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels

Welded Mesh

will boost EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road

Speed Floor

EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road Stabilizer Bricks

LGS

EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road Stabilizer Bricks
EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road Stabilizer Bricks
EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road Stabilizer Bricks
EBITDA margins Cement Cut & Bend Welded Mesh Speed Floor LGS EPS Panels Road Stabilizer Bricks

EPS Panels

Road Stabilizer

Bricks & Pavers

LWA

JSPL - Power Capacities IPP Independent Power Projects (IPP)     Capacity Configurati P r

JSPL - Power Capacities

JSPL - Power Capacities IPP Independent Power Projects (IPP)     Capacity Configurati P r o
JSPL - Power Capacities IPP Independent Power Projects (IPP)     Capacity Configurati P r o

IPP

Independent Power Projects (IPP)

 
 

Capacity

Configurati

Project

(MW)

Fuel

on

Status

Tamnar 1 (a)

1,000

Coal

4x250 MW

Operational

Tamnar 2 (a)

2,400

Coal

4x600 MW

1,800 MW operational, balance 600 MW synchronized

Satara (b)

24

Wind

18x1.5 MW

Operational

Captive power projects (within JSPL)

 
 

Capacity

Project

(MW)

Fuel

Configuration

Status

DCPP, Raigarh

540

Coal

4x135 MW

Operational

 

Coal &

2x25 MW & 40 MW (Waste heat) 2x55 MW

 

JSPL, Raigarh

299

waste

Operational

 

heat

3x25 MW

 

24 MW

Angul, Odisha

810

Coal

6 x135 MW

Operational

Raigarh Tamnar Angul Satara CPP
Raigarh
Tamnar
Angul
Satara
CPP

One of the largest thermal portfolios in India

One of the largest thermal portfolios in India

(a) Within JPL; (b)Within JSPL

Copyright @ 2015 Jindal Steel & Power Limited

26

JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I 1000MW (4 X 250) EUP -II

JINDAL POWER LIMITED

JINDAL POWER LIMITED 96.43% subsidiary of JSPL EUP -I 1000MW (4 X 250) EUP -II 1200MW

96.43% subsidiary of JSPL

EUP -I

1000MW (4 X 250)

EUP -II

1200MW (2 X 600)

*600 MW Synchronized, Await Commissioning

EUP -III

1200MW (2 X 600*)

Key Contractual Arrangements for JPL Tamnar-I, 1,000 MW (EUP I) Tamnar-II - 1,200 MW (EUP
Key Contractual Arrangements for JPL Tamnar-I, 1,000 MW (EUP I) Tamnar-II - 1,200 MW (EUP

Key Contractual Arrangements for JPL

Tamnar-I, 1,000 MW (EUP I) Tamnar-II - 1,200 MW (EUP II) Tamnar-II - 1,200 MW
Tamnar-I, 1,000 MW (EUP I)
Tamnar-II - 1,200 MW (EUP II)
Tamnar-II - 1,200 MW (EUP III)

Awaiting clarity on Tara Coal Block

In the interim, coal sourced through market purchase and e-auction

Long term linkage from Mahanadi Coal Limited (MCL) and South Eastern Coalfields Limited (SECL)

Awaiting clarity on Gare

Palma IV/2 & 3 Coal mine

Market purchase and e- auction

TNEB 400MW

CSEB 60MW

KSEB 200MW

KSEB 150MW

CSEB 60MW

Full Open access for 400MW TNEB PPA commenced from Oct 2015

Open access to be finalised against PPAs

FSA PPA Evacuation
FSA
PPA
Evacuation

Bilateral/short term/ merchant

258km transmission line from plant to national grid

Raw materials, transmission & PPAs in place for achieving higher PLF

Raw materials, transmission & PPAs in place for achieving higher PLF

Raw materials, transmission & PPAs in place for achieving higher PLF

(a) Excluding auxiliary consumption

Copyright @ 2015 Jindal Steel & Power Limited

28

PPA Arrangements Period Quantum Project Buyer Type From To (MW) Tamnar II   (Phase 1)
PPA Arrangements Period Quantum Project Buyer Type From To (MW) Tamnar II   (Phase 1)

PPA Arrangements

Period

Quantum

Project

Buyer

Type

From

To

(MW)

Tamnar II

 

(Phase 1)

Tamil Nadu

Long Term

Feb-14

Sep-28

400

Tamnar II

 

(Phase 1)

 

Long Term

Jun-16

May-41

200

Tamnar II

KSEB

Long Term

Oct-17

Sep-42

150

(Phase

1)

   

After commercial

 

Tamnar II

(Phase 1)

 

Long Term

operation of Unit and for complete life of plant

60

Tamnar II

Chhattisgarh

After commercial operation of Unit and for complete life of plant

 

(Phase 2)

 

Long Term

60

Over 30% of total capacity tied up *

Over 30% of total capacity tied up *

* Out of 3400 MW (IPP)

Copyright @ 2015 Jindal Steel & Power Limited

29

Upcoming PPAs Procurer Type Quantum (MW) Schedule delivery Tenure (years) Uttar Pradesh Long Term
Upcoming PPAs Procurer Type Quantum (MW) Schedule delivery Tenure (years) Uttar Pradesh Long Term

Upcoming PPAs

Procurer

Type

Quantum (MW)

Schedule delivery

Tenure (years)

Uttar Pradesh

Long Term

2,800

Oct-16

15

Bihar

Long Term

500

3 year after submission of RFP

NA

Uttar Pradesh

Long Term

1,000

Oct-16

15

JPL - Well placed on account of low capital cost base

Upcoming Transmission Infrastructure Kurukshetra NR 3000 MW + 3000 MW Gorakhp Agra Jaipur ur Bishwanath
Upcoming Transmission Infrastructure Kurukshetra NR 3000 MW + 3000 MW Gorakhp Agra Jaipur ur Bishwanath

Upcoming Transmission Infrastructure

Kurukshetra NR 3000 MW + 3000 MW Gorakhp Agra Jaipur ur Bishwanath Charali Orai Rapp
Kurukshetra
NR
3000 MW
+ 3000
MW
Gorakhp
Agra
Jaipur
ur
Bishwanath Charali
Orai
Rapp
Vanara
Chittorgarh C&D
si
NE R
Barh
Rihan
d
ER
Gwalior
Gaya
Dharamjaigarh
Oct’1
Banaskantha
Ranc
Vidhyanchal
5
Jharsugu hi
Shujalpu
Jabalpur
da
Champa
Ang
r`
Raigarh P.S
Wardha
ul
Warora
WR
Kolhapur
Nizamabad
Srikakulam
Warangal
Legends:
Narendra
S
400 kV D/C Line
765
kV D/C Line
R 6000
MW
765
kV S/C Line
800 kV HVDC Line
Pugalur

Tamnar II (Phase 1):

350 MW KSEB PPA, transmission corridor

is expected from Jun-16

Long term access from WR to NR granted for 557 MW is expected to be available by

Jun-16 upon commissioning of Champa

Kurukshetra HVDC link (3,000 MW). This will be useful for power sale to UP

No constraint in power evacuation to

Western and Eastern Region entities

including Bangladesh, where we have participated for 250 MW power supply

Transmission constraints expected to be resolved in the near term

Transmission constraints expected to be resolved in the near term
Summary of International Operations Shadeed, Oman  1.5 MT HBI & 2 MT SMS Plant
Summary of International Operations Shadeed, Oman  1.5 MT HBI & 2 MT SMS Plant

Summary of International Operations

Shadeed, Oman

1.5 MT HBI & 2 MT SMS Plant plans to make it an Integrated Steel Plant

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

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

coal -rich Moatize region  Coal resources estimated at 1.2 bn tonnes including coking coal 
estimated at 1.2 bn tonnes including coking coal  South Africa, Africa  JSPL’s Kiepersol Colliery
South Africa, Africa  JSPL’s Kiepersol Colliery produces Anthracite coal, sold domestically and internationally
South Africa, Africa  JSPL’s Kiepersol Colliery produces Anthracite coal, sold domestically and internationally

South Africa, Africa

JSPL’s Kiepersol Colliery produces Anthracite coal, sold domestically and internationally Plans to ramp up capacity

Australia

Australia

Acquired 82.04% controlling stake in Wollongong Coal

(Erstwhile Gujarat NRE coking coal Limited)

Holding structure for global operations Jindal Steel & Power Ltd Listed Operating Entity in India

Holding structure for global operations

Holding structure for global operations Jindal Steel & Power Ltd Listed Operating Entity in India Jindal
Jindal Steel & Power Ltd Listed Operating Entity in India
Jindal Steel & Power Ltd
Listed Operating Entity in India

Jindal Steel & Power (Mauritius) Ltd

Holding company for overseas business

Australia
Australia

Coking Coal

South Africa

Anthracite Coal

Mozambique
Mozambique

Oman

2 MTPA Steel plant

Thermal/ Coking Coal

Jindal Shadeed Iron & Steel, Oman Marching towards becoming a Fully Integrated Steel Plant 1.5

Jindal Shadeed Iron & Steel, Oman

Jindal Shadeed Iron & Steel, Oman Marching towards becoming a Fully Integrated Steel Plant 1.5 HBI

Marching towards becoming a Fully Integrated Steel Plant

Marching towards becoming a Fully Integrated Steel Plant 1.5 HBI 2 MTPA SMS 1.4 MTPA Rolling

1.5 HBI

towards becoming a Fully Integrated Steel Plant 1.5 HBI 2 MTPA SMS 1.4 MTPA Rolling Mill

2 MTPA SMS

becoming a Fully Integrated Steel Plant 1.5 HBI 2 MTPA SMS 1.4 MTPA Rolling Mill (Commercial

1.4 MTPA Rolling Mill

(Commercial Production 1QFY17)

Salient Features  First & Largest Integrated steel plant of Oman  Third largest in
Salient Features  First & Largest Integrated steel plant of Oman  Third largest in

Salient Features

First & Largest Integrated steel plant of Oman

Third largest in Arabian Peninsula

Port based steel plant

Largest Arc furnace in Arabian Peninsula, with contracted natural gas

Worlds Best Performing Midrex plant (category 1.5MTPA)

Products : HBI, Blooms & Billets

In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC • Gas-based 1.5 MTPA
In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC • Gas-based 1.5 MTPA

In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC

In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC • Gas-based 1.5 MTPA HBI

Gas-based 1.5 MTPA HBI plant commenced production in

January 2011

Commissioned SMS of 2 MTPA in April 2014

1.4 MTPA Rebar to be

commissioned in 4QFY16

Rolling Mill 1.4 MTPA Rebar Mill • Total Project Cost: Around USD 225 million •

Rolling Mill

1.4 MTPA Rebar Mill

Rolling Mill 1.4 MTPA Rebar Mill • Total Project Cost: Around USD 225 million • Expected
Rolling Mill 1.4 MTPA Rebar Mill • Total Project Cost: Around USD 225 million • Expected

Total Project Cost: Around USD 225 million

Expected commercial production in 1Q FY 2017

1.4 MTPA Rebar Mill • Total Project Cost: Around USD 225 million • Expected commercial production
PRESENTATION OUTLINE STEEL OUTLOOK INDUSTRY DEVELOPMENTS BRIEF BACKGROUND Q4 FY’16 OPERATIONAL PERFORMANCE FINANCIAL
PRESENTATION OUTLINE
PRESENTATION OUTLINE
PRESENTATION OUTLINE STEEL OUTLOOK INDUSTRY DEVELOPMENTS BRIEF BACKGROUND Q4 FY’16 OPERATIONAL PERFORMANCE FINANCIAL

STEEL OUTLOOK

INDUSTRY

DEVELOPMENTS

BRIEF

BACKGROUND

Q4

FY’16

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

INDUSTRY DEVELOPMENTS BRIEF BACKGROUND Q4 FY’16 OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE Analyst Presentation 38

Analyst Presentation

38

Q4 FY 15-16 Performance highlights JSPL achieves record domestic Sales of over 1.0 million MT
Q4 FY 15-16 Performance highlights JSPL achieves record domestic Sales of over 1.0 million MT

Q4 FY 15-16 Performance highlights

Q4 FY 15-16 Performance highlights JSPL achieves record domestic Sales of over 1.0 million MT in

JSPL achieves record domestic Sales of over 1.0 million MT in Q4 registering 37% growth q-o-q

10% growth in Domestic Steel Production in Q4 y-o-y (0.97 million MT in Q4 FY 15-16 vs 0.88 million MT in Q4 FY14-15)

Pellet Sales in Q4 Quadruples y-o-y

1.4 MTPA Rebar mill commissioned in Oman

1.2 MTPA plate mill in Raigarh upgraded

Consolidated Steel Production 1.40 1.07 1.10 1.03 1.40 0.35 1.20 0.18 0.29 1.00 0.80 0.60
Consolidated Steel Production
1.40
1.07
1.10
1.03
1.40
0.35
1.20
0.18
0.29
1.00
0.80
0.60
0.97
0.85
0.85
0.78
0.40
0.20
0.00

1QFY16

2QFY16

JSPL Domestic

3QFY16

Jindal Shadeed

4QFY16

Total Steel Production up 23%*
Total Steel Production up 23%*

*Quarter on Quarter

Copyright @ 2015 Jindal Steel & Power Limited

40

Consolidated Steel Sales Volumes 1 . 4 0 1 . 5 0 1 . 0
Consolidated Steel Sales Volumes
Consolidated Steel Sales Volumes
1 . 4 0 1 . 5 0 1 . 0 7 0 . 9
1 . 4 0
1
. 5
0
1 . 0 7
0 . 9 7
0 . 9 9
0 . 4
1
. 0
0
0 . 1 9
0 . 2 5
1
0 . 8 2
0
. 5
0
0 . 7 8
0 . 7 4
0
. 0
0
1 Q F Y 1 6
2 Q F Y 1 6
3 Q F Y 1 6
4 Q F Y 1 6
J S P L
J i n d a l S h a d e e d
Total Steel Sales volumes up 42%*
Total Steel Sales volumes up 42%*

*Quarter on Quarter

Copyright @ 2015 Jindal Steel & Power Limited

41

Key Customers & Adding … 42

Key Customers & Adding

Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
Key Customers & Adding … 42
PRESENTATION OUTLINE
PRESENTATION OUTLINE
PRESENTATION OUTLINE Q4 FY’16 STEEL OUTLOOK INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL

Q4

FY’16

STEEL OUTLOOK

INDUSTRY

DEVELOPMENTS

BRIEF

BACKGROUND

OPERATIONAL

PERFORMANCE

FINANCIAL

PERFORMANCE

STEEL OUTLOOK INDUSTRY DEVELOPMENTS BRIEF BACKGROUND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE Analyst Presentation 43

Analyst Presentation

43

Standalone Q4 FY 16 – Snapshot of Key Financials - - 44
Standalone Q4 FY 16 – Snapshot of Key Financials - - 44

Standalone Q4 FY 16 Snapshot of Key Financials

Standalone Q4 FY 16 – Snapshot of Key Financials - - 44
Standalone FY 16 – Snapshot of Key Financials - - 45
Standalone FY 16 – Snapshot of Key Financials - - 45

Standalone FY 16 Snapshot of Key Financials

Standalone FY 16 – Snapshot of Key Financials - - 45
Consolidated Q4 FY 16 – Snapshot of Key Financials - - 46
Consolidated Q4 FY 16 – Snapshot of Key Financials - - 46

Consolidated Q4 FY 16 Snapshot of Key Financials

Consolidated Q4 FY 16 – Snapshot of Key Financials - - 46
Consolidated FY 16 – Snapshot of Key Financials - - 47
Consolidated FY 16 – Snapshot of Key Financials - - 47

Consolidated FY 16 Snapshot of Key Financials

Consolidated FY 16 – Snapshot of Key Financials - - 47
JPL – Snapshot of Key Financials - - 48

JPL Snapshot of Key Financials

JPL – Snapshot of Key Financials - - 48
JPL – Snapshot of Key Financials - - 48
Focus for FY17 Capacity Utilization Financial Prudence Copyright @ 2015 Jindal Steel & Power Limited

Focus for FY17

Focus for FY17 Capacity Utilization Financial Prudence Copyright @ 2015 Jindal Steel & Power Limited 49
Capacity Utilization
Capacity Utilization
Financial Prudence
Financial Prudence
Key Priorities & Focus Areas • Sweat the Assets – Achieve 100% Capacity utilization •

Key Priorities & Focus Areas

Key Priorities & Focus Areas • Sweat the Assets – Achieve 100% Capacity utilization • Continued

Sweat the Assets Achieve 100% Capacity utilization

Continued cost reduction campaign

Completion of Angul Phase 1B

Divest / Monetize non core / non performing assets

Reduce Debt

Renewed thrust on exports

Focus on “Value Added Products”

High Value added product development at Angul plate mill

Reduce Working capital

Diversify into High Rise building segment and Low cost housing segment & offer

complete package of Steel and Construction material

Snapshots from JSPL Analyst Presentation 51
Snapshots from JSPL Analyst Presentation 51

Snapshots from JSPL

Analyst Presentation

51

Jindal Shadeed, Oman

Jindal Shadeed, Oman

Jindal Shadeed, Oman
Jindal Shadeed, Oman
Jindal Shadeed, Oman

Jindal Shadeed, Oman

Jindal Shadeed, Oman
Jindal Shadeed, Oman
Jindal Shadeed, Oman

Jindal Shadeed, Oman

Jindal Shadeed, Oman
Jindal Shadeed, Oman
Jindal Shadeed, Oman

Jindal Shadeed, Oman

Jindal Shadeed, Oman
Jindal Shadeed, Oman
Jindal Shadeed, Oman

Jindal Shadeed, Oman

Jindal Shadeed, Oman
Jindal Shadeed, Oman
JSPL Raigarh (NEOF)

JSPL Raigarh (NEOF)

JSPL Raigarh (NEOF)
JSPL Raigarh (NEOF)
JSPL Raigarh (NEOF)

JSPL Raigarh (NEOF)

JSPL Raigarh (NEOF)
JSPL Raigarh (NEOF)
JSPL Raigarh (Upgraded Plate Mill) - - 59

JSPL Raigarh (Upgraded Plate Mill)

JSPL Raigarh (Upgraded Plate Mill) - - 59
JSPL Raigarh (Upgraded Plate Mill) - - 59
Jindal Structures being used at building in BKC, Mumbai 60
Jindal Structures being used at building in BKC, Mumbai 60

Jindal Structures being used at building in BKC, Mumbai

Jindal Structures being used at building in BKC, Mumbai 60
For any information please contact: - Mr. Nishant Baranwal – Investor Relations Tel : +91

For any information please contact: -

Mr. Nishant Baranwal Investor Relations Tel : +91 11-26739178 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com

Analyst Presentation

Relations Tel : +91 11-26739178 Mobile:+91 8800690255 Email: - nishant.baranwal@jindalsteel.com Analyst Presentation 61

61

THANK YOU Analyst Presentation 62
THANK YOU Analyst Presentation 62

THANK YOU

Analyst Presentation

62