Baoshan Iron & Steel Co.,Ltd.2013 Full Year Results

March 2014

The following presentation distributed herewith includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Baoshan Iron & Steel Co.,Ltd.(Baosteel) expects or anticipates will or may occur in the future are forward-looking statements.

Baosteel’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, competition and other risks and factors beyond our control.

Disclaimer

Operation Results

Industry Dynamics

Company Outlook

Output & Sales

Note：stainless and special steel assets were sold to Baosteel Group on April 2012Unit: million tons 2011 2012 2013 YoYOutput 26.6 23.0 22.0 -4% Unit:million tons 2011 2012 2013 YoYSales 25.8 23.6 22.0 -7%Including: export 2.7 2.3 1.9 -18%

Crude Steel Output27 23 22 2011 2012 2013

Sales of Finished Products26 24 22 3 2 2 2011 2012 2013

Sales Breakdown and Gross MarginsSales Breakdown

CRC43%HRC37% Plate5% Tube7% Others8%

Gross Margin by Product

11.2% 8.8% 9.0%-3.9% -11.7%

14.6% 15.0% 3.7% 1.2% -4.7%CRC HRC Tube Others Plate2012 2013

Income Statement

Unit:billion Yuan 2011 2012 2013 YoYRevenue 223 192 190 -0.8% Unit:billion Yuan 2011 2012 2013 YoYGross Profit 19.6 14.4 18.1 26%Gross Margin 8.8% 7.5% 9.5% ↑ 2.0pptsUnit:billion Yuan 2011 2012 2013 YoYNet Profit* 6.7 4.4 6.3 43%NetMargin* 3.0% 2.3% 3.3% ↑ 1.0pptsNote：*non-recurring profit not included

Revenue223 192 1902011 2012 2013

Gross Profit20 14 182011 2012 2013

Net Profit7 4 62011 2012 2013

Revenue by Business Segments

Note：135.5billion Yuan offset between segments

Main Business Diversified Business

Unit: billion Yuan Revenue YoY Gross Margin YoYSteel making 128.3 -13.3% 9.5% ↑ 3.4pptsDistribution 178.7 -1.3% 2.2% --Unit:billion Yuan Revenue YoY Gross Margin YoYChemicals 10.9 -5.3% 9.5% ↑ 1.3pptsIT 3.6 -1.6% 23.8% ↑ 3.3pptsE-commerce 3.5 n.a. 1.0% n.a.Finance 0.6 -6.2% 53.6% ↓ 0.6ppts

128 179

steel making distribution

114 4 1chemicals informationtechnology e-commerce finance

Financial Indicators

Unit 2012 2013 YoY

EPS* Yuan/share 0.25 0.38 52.0%BVPS Yuan/share 6.47 6.71 3.7%Net CFO per share Yuan/share 1.30 0.73 -43.8%ROE(weighted)* % 3.84 5.75 ↑ 1.9 pptsLeverage % 45.7 47.0 ↑ 1.3 pptsCurrent ratio 0.83 0.82 -1.2%Quick ratio 0.48 0.50 4.2%Days of receivables Day 19.0 19.6 3.2%Days of inventories Day 70.8 65.5 -7.5%Cash conversion cycle Day 51.6 43.6 -15.5%Note：*non-recurring profit not included

Highlights in 2013

Competitiveness

Net profit 6.3* billion Yuan，up 43% YoY;Maintain best performance in domestic steel industry

High-end product orientation: 54% sales are strategic products；Premium product mix: 64% sales are Only One and Number One products

Note：*non-recurring profit not included

Highlights in 2013

58 domestic service centers，with annual processing capacity of 8.16 million tons；10 EVI projects in non-auto industries；Joint labs with downstream customers；Customer service strategy: Key Account Director

Note：EVI – Early Vendor Involvement

Material Manufacturer Service Provider

Auto Sheet

Highlights in 2013world debut of 3rd generation super high strength steel product, only steel mill that can produce all 3 generations of high strength steel in large scale

Automobile Steel State Key Laboratory over 200 auto sheet EVI projects50% domestic market share of CRC auto sheet

“Development and Industrialization of Low Temperature High Magnetic Induction Grain-oriented Silicon Steel Manufacturing Technology” won the First Prize of National Science and Technology Progress

47% domestic market share of high-end oriented silicon steelwhole series of silicon steel applied in electric vehicle

Silicon Steel

Highlights in 2013Oversea Strategy• 4 headquarters, 15 sales offices, 2 service centers• 66% of export are high tech and high value added products, up 10 ppts YoY

• Speed up oversea layout: set up Korean service center, started Indian service center

New BusinessHighlights in 2013

Highlights in 2013

Capital Market

� Biggest share buyback in A-share history, 5 billion Yuan, 1 billion shares, 5.9% of the original capital stock cancelled.

� 2013 profit distribution：1.65 billion Yuan cash dividend(0.1 Yuan/share) plus 3.08 billion Yuan already spent in the share buyback, totally 81% of net profit.

�Highest rating in global steel industry and stable outlook from S&P, Moody’s and Fitch. 500 million USD bond in international capital market, locking in low cost long term financing.

� RMB capital pool in pilot FTZ. First cross-border RMB loan in FTZ, 30% lower than domestic interest rate.

Highlights in 2013Zhanjing Project Progress

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sep

2013 2016

No.1 BF construction began;Enter full construction phaseNo.1 BF construction began;Enter full construction phase

Full completionFull completionContinuous casting and HR projects beganContinuous casting and HR projects began

CR project beganCR project began

Steel making project beganSteel making project began

Operation Results

Industry Dynamics

Company Outlook

• 2013 GDP up 7.7% YoY, same as 2012. Economy slowed down but remained stable.

• GDP growth targets at 7.5% for 2014. China looks for further reform.

Data source: National Bureau of Statistics• 2013 CPI up 2.6% YoY, same as 2012.

• Monetary policy is expected stable, neutral to tight in 2014.

Macro EconomyCPIGDP

9.6 9.2 10.4 9.2 7.7 7.7 7.52008 2009 2010 2011 2012 2013 2014target

5.9

-0.73.3 5.4

2.6 2.6 3.52008 2009 2010 2011 2012 2013 2014target

• Domestic crude steel output grew rapidly to 779 million tons in 2013, about 49% of the global steel industry.• Median-large size steel mills output 628 million tons, up 8.0% YoY, grew faster than small mills by 2.5 ppts.• Steel industry FAI 672.6 billion Yuan in 2013, up 0.7% YoY, slowed down by 2.3 ppts.• New capacity is prohibited. Environmental issue may force some capacities to shut down. Capacity and output growth are expected to slow down in 2014.

Data source: MIIT, Customs statistics, company forecast

Demand and Supply Analysis--Supply

Crude Steel Output and Apparent Consumption

Unit: million tons 2013 YoY 2014E YoYOutput 779 7.5% 809 3.9%Net Export 51 15.9% 57 11.8%Apparent Consumption 728 7.1% 752 3.3%Output Apparent Consumption2012 2013 2014E

• Export 62.3 million tons, up 12% YoY. Import 14.1 million tons, up 3% YoY. Net export 48.3 million tons, up 15% YoY in 2013.

• Export grew fast in 2013 due to domestic over-supply and cheap price.Data source: Customs statistics

Demand and Supply Analysis--Import & Export

Annual Net ExportUnit: Million tons43.8 7.0 26.1 33.3 42.1 48.3

2008 2009 2010 2011 2012 2013

• FAI 43.6 trillion Yuan in 2013, up 19.6% YoY , continued to slow down.

• Little possibility of government’s investment to boost economy.

Data source: Wind

FAI Unit: trillion YuanDemand and Supply Analysis

--Demand(Infrastructure)

15 19 24 30 36 44

2008 2009 2010 2011 2012 2013

• Investment, new start and sales rebounded, up 19.8%, 13.5% and 17.3% YoY respectively in 2013.

• Commercial property prices soared in 2013. • Recent prices in certain regions began to decrease, facing higher property bubble risk.

Data source: Wind

Investment New Start and Sales AreaUnit: trillion Yuan3.1 3.6 4.8 6.2 7.2 8.6

2008 2009 2010 2011 2012 2013

Unit: billion square metersDemand and Supply Analysis

--Demand(Real Estate)

1.0 1.2 1.6 1.9 1.8 2.0 0.7 0.9 1.0 1.1 1.1 1.3

2008 2009 2010 2011 2012 2013New Start Sales

• Output and sales grew rapidly to 22.1 and 22.0 million units, up 15% and 14% YoY respectively in 2013.

• 10% growth rate is expected in 2014.

Data source: CAAM

Output SalesUnit: million units Unit: million unitsDemand and Supply Analysis

--Demand(Auto)

9.3 13.8 18.3 18.4 19.3 22.1 3.7 2008 2009 2010 2011 2012 2013 Jan-Feb2014

9.4 13.6 18.1 18.5 19.3 22.0 3.8 2008 2009 2010 2011 2012 2013 Jan-Feb2014

• White goods grew fast in 2013.• With the consumption and product mix upgrade, demand will transform from

policy driven to natural growth.• Average 5-10% growth rate is expected in 2014.

Data source: Wind

Washing Machine Refrigerator

Air-conditioner TV

Unit: million unitsDemand and Supply Analysis

--Demand(Home Appliances)Unit: million units

Unit: million units Unit: million units0%10%20%30%

020406080

2008 2009 2010 2011 2012 2013 -10%0%10%20%30%0204060

801002008 2009 2010 2011 2012 2013

-20%0%20%40%60%04080

1201602008 2009 2010 2011 2012 2013 -5%0%5%10%

15%050

1001502008 2009 2010 2011 2012 2013

• Weak recovery in machinery industry in 2013.

• Transportation equipment pick up quickly in Q4.

• Growth is expected stable in 2014, industry average 11%.

Value Added YoY Growth

Demand and Supply Analysis--Demand(Machinery)

-10%0%10%20%30%

2011 Apr Jun Aug Oct Dec Mar May Jul Sep Nov 2013 Apr Jun Aug Oct DecGeneral EquipmentSpecial EquipmentElectrical equipmentTransportation Equipment

Data source: National Bureau of Statistics

• Completion, new order and carrying order were 45, 70 and 130 million tonnages, down 24.7%, up 242% and up 22.5% YoY respectively in 2013.

• Given overcapacity and low price of new orders, strong recovery in unlikely, in spite of the recent rally.Data source: CANSI

CompletionUnit: million tonnageDemand and Supply Analysis

--Demand(Ship Building)

02468101214

16

Jan-Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2010 2011 2012 2013

• Steel social inventory peaked over 22 million tons in the end of Q1 and destocking started since then until the end of 2013.

• Due to the depressed steel price and traders’tight credit, restocking was weak. Steel inventory transferred to the steel mills.

• Restocking started in the beginning of 2014, but slowed down recently. Total inventory was 20.7 million tons by 28 March, down 11% YoY.

Data source: Mysteel

Steel InventorySocial Inventory Unit: million ton

0510152025

Jan-13 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14Total Long Products Flat Products

• Port inventory was about 70 million tons in Q1-Q3, 2013.

• Inventory increased rapidly since Q4 and broke 100 million tons again since 2 years ago in Feb 2014.

• Financing inventory destocked with the decrease of iron ore price, plus the slow demand recovery from steel mills, port inventory growth slowed down recently. By 28 March, port inventory was 107 million tons, up 55% YoY.

Data source: Mysteel

Iron Ore InventoryPort Inventory Unit: million ton

020406080100Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Mar-14Total Australia Brazil India

• Import iron ore 820 million tons, up 10% YoY in 2013, about 2/3 of the global trade volume. Average import price 129 USD/ton, up 0.4% YoY.

• 2013 average Platts reached 135 USD/ton, 5 USD/ton higher than 2012, because of the strong demand of Chinese steel mills.

• Entering 2014, due to the depressed demand and destocking, Plattes once decreased to 105, bottom level in the recent 18 months. Platts rebounded to 117.25 by 31 Mar.

• Coke price still in downward trend in 2013 and is expected to continue in 2014.

Data source: Wind

Raw Material CostCoke and Scrap PricePlatts (62% Fe)

01000200030004000

Jan-12 Apr-12 Aug-12 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14Coke Scrap151.25

88.5 118160

109.75142.5134.5 10580100120140160180

Jan-12 Feb-12 Apr-12 Jun-12 Jul-12 Sep-12 Oct-12 Dec-122012 2013 2014 2012 Average 2013 AverageJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Data source: Wind• Steel price decreased except for the beginning and middle of 2013, reached historical bottom level.

• Total cost decreased and output increased, industry profitability improved in 2013, sales margin of median-large size steel mills increased to 0.62%.

• Uncertainty in 2014 economy reform and decapacity in steel industry, steel price is expected to remain weak and low profit will continue.

Steel MarketHRC, CRC and Rebar Price CRC Products Price

2500300035004000450050005500

Jan-12 Apr-12 Aug-12 Dec-12 Mar-13 Jul-13 Nov-13Mar-14HRC 3.0 CRC 1.0 Rebar HRB400 300040005000600070008000

Jan-12 Apr-12 Aug-12 Dec-12 Mar-13 Jul-13 Nov-13Mar-14CRC 1.0 Galvanized 1.0 Prepainted 0.476 Silicon 600

Operation Results

Industry Dynamics

Company Outlook

2014 Plan and Principle2014 PlanUnit: million ton, billion Yuan

Steel business plus IT and E-commerce, Synergy of Shanghai, Meishan and

Zhanjiang bases

Innovation and Reform

Differential Competition and Cost ReductionLean Operation

2013 Results 2014 Plan

Iron 21.2 21.5

Steel 22.0 22.1

Sales 22.0 21.8

Revenue 190 195Cost 172 177

CAPEX

Unit: billion Yuan2014 CAPEX

17.8 14.0 16.6 10.4 12.521.5

2009 2010 2011 2012 2013 2014E

Coking furnace overhaul2030 GA unit upgradeetc.

Zhanjiang Project

11.9 billion

2014 Highlights

Manufacturing

Strengthen core products market position;Continue to boost R&D

Zhanjiang project progress in line

Promote global supply chain building；Set up Indian service center, 2-3 more projects are expected

E-Commerce

Plan of Luojing Cloud Computing Industrial Area

Information Industry

Shanghai Steel Trading Center trade volumn targets 3.2 million tons;Promote E-Commerce of industrial products etc.

2014 Highlights

Optimize Shareholding StructurePromote diversified shareholdingstructure of subsidiaries and explicitinvestment value

Multi-layered Incentive PlanManagement stock incentive plan and key employee asset management

2014 Highlights