STEEL AUTHORITY OF INDIA LIMITEDInvestors Meet

June 01, 2015

Contents

Global Steel Scenario

Domestic Steel Scenario

SAIL : Overview

SAIL : Performance

SAIL: modernization & expansion plan

Global Steel Scenario

World Steel Association (WSA) forecast :Global apparent steel use will grow byanother 0.5% and will reach 1,544 mtpa in2015.

1433 1537 1559 1642 1662

2010 2011 2012 2013 2014

1.2%

GLOBAL crude steel production in MT (last 5 yrs.)

Global Crude steel production : remains flat at 1662 mtpa (growth of 1.2 % over 2013)

Avg. growth rate of global crude steel production in last 5 yrs. is 6%

India’s crude steel production has increased by 2.2% over 2013

Growth in developed Countries like US & Japan remained flat(between 1-2%)

Growth in China remained flat at 0.9%; there is a 7.5% jump in South Korea

Rank CountryCrude steel

production 2014in MTPA

1 China 8232 Japan 1113 United States 884 India 835 South Korea 71

World 1662

Growth Trends of World Steel Industry

Source WSA

0.6 % growthover 2013

GLOBAL finished steel consumption

(last 5 yrs.) CAGR (5 yrs.) = 6 %

Rank CountryProjected Finished Steel Consumption

2015(in mt)

1 China 707

2 United States 107

3 India 80

World 1544

13071411 1437

1532 1537

2010 2011 2012 2013 2014

Share in total 2014 World Finished Steel Consumption: India: 5% ; China: 46%; Asia: 71%

Global finished steel consumption projected 2015:

1544 mtpa (growth of 0.6 % over 2014)

Avg. growth rate of global finished steel consumption in last 5 yrs. is 6.0%

In the United States, after a decrease of -0.6% in apparent steel use in 2013, steel demand has increased by 11.7% to 107 mtpa in 2014. Projection flat for 2015

India’s finished steel consumption is projected to increase by 6.2% over 2014Source: WSA; duration is considered on

calendar basis

Growth Trends of World Steel Industry

Region / Country

2014 2015 forecast 2016 forecast

Quantity(in million Tonnes)

Growth over

2013 (%)

Quantity(in million Tonnes)

Growth over

2014 (%)

Quantity (in million

Tonnes)

Growth over 2015 (%)

World 1537.3 0.6 1544.4 0.5 1565.5 1.4World Excluding China 826.6 4.2 837.2 1.3 861.8 2.9European Union(28) 146.8 4.5 149.9 2.1 154.1 2.8Other Europe 37.0 0.2 38.0 2.8 38.5 1.4CIS 56.5 -4.9 52.4 -7.3 52.2 -0.3NAFTA 144.6 11.3 143.3 -0.9 145.1 1.3Central & South America 48.1 -3.9 46.5 -3.4 48.1 3.4Africa 36.9 4.2 39.6 7.4 41.5 4.9Middle East 51.9 3.7 53.3 2.8 55.6 4.2Asia & Oceania 1015.6 -1.0 1021.5 0.6 1030.4 0.9

- China 710.8 -3.3 707.2 -0.5 703.7 -0.5- India 75.3 2.2 80.0 6.2 85.8 7.3

World Steel Association (WSA) Short Range Outlook, Apr’15

Domestic Steel

Scenario

India’s Crude steel

production (2014) : 83

mtpa (growth of 2.3 %

over 2013)

In 2015, a further 6%

growth in steel demand in

India is expected.

64 69 74 77 81.3 83.2

2009 2010 2011 2012 2013 2014

Crude Steel Production (mtpa)

5865 70 72 74 75.3

2009 2010 2011 2012 2013 2014

Finished Steel Consumption (mtpa) 2.2%

Per capita finished steel consumption, 2013

World – 225 kg/t

China – 515 kg/t

India – 58 kg/t

Source: WSA

Growth Trends of Indian Steel Industry

6.77.8 8.9

2468

1012

6% 7% 8%

Stee

l Con

sum

ptio

n G

row

th R

ate

(in %

)

GDP Growth Rate (in %)

Steel Consumption2021-22 (MTPA)

Steel Consumption 2025-26 (MTPA)

GDP Growth Rate 6% 135 175

GDP Growth Rate 7% 150 202

GDP Growth Rate 8% 166 234

Elasticity = 1.11

Source : Draft NSP, Team Analysis

Indian Steel Industry: Finished Steel Demand Projection

SAIL: Overview

Several decades of experience in the steel sector

...with an Established and Successful Operating Track Record

SAIL incorporated as a holding company for HSL, Bokaro Steel Ltd, Salem Steel Ltd, Hindustan Steel Works Construction Ltd (“HSCL”), Bharat Coking Coal Ltd (“BCCL”), NMDC Limited

Maharashtra Elektrosmelt Limited (“MEL”) taken over as a subsidiary

Visvesvaraya Iron & Steel Ltd (“VISL”) taken over as a subsidiary

Listing of SAIL on Bombay Stock Exchange (“BSE”)

Listing of SAIL on National Stock Exchange of India (“NSE”)

Listing of SAIL GDRs on the London Stock Exchange

SAIL accorded Navratna status

VISL merged with SAIL in 1998

Joint Venture with NTPC & DVC for captive power generation in 2001 & 2002 respectively

IISCO merged with SAIL in 2006

Erstwhile Bharat Refractories Ltd. merged with SAIL as SAIL Refractory Unit(SRU) in 2007

SAIL initiated the modernisation and expansion plan

SAIL accorded Maharatna status

Completed merger with MEL Entered into

JV with Kobe Steel

Integrated Commissioning of Expansion Plan of RSP and ISP

Over a period of time, formed JVs with SCI Shipping, RITES, Tata Steel, Jaypee Group etc.

Hindustan Steel Ltd (“HSL”) established

HSL comprised Bhilai Steel Plant, Durgapur Steel Plant, Rourkela Steel Plant and Alloy Steels Plant

SAIL became an operating company

Demerger of HSCL and NMDC

Indian Iron & Steel Company (“IISCO”) taken over as a subsidiary

Partial commissioning of new facilities at IISCO Steel Plant and Rourkela Steel Plant

Transfer of refractory unit of Burn Standard Company Limited at Salem to newly formed subsidiary of SAIL

SAIL: Well Positioned to Benefit

1

2

4

Leadership position in India Strategically located

integrated operations with access to resource base including large land bank, captive mines

Low leveraged financial position Diversified product

mix supported by strong marketing and distribution network

Experienced management team supported by strong execution team

In-house R&D centre , Centre for Engineering & Technology(CET) and captive Engineering Shops

3

6

5

7

Responsible corporate citizen

Share Holding Pattern as on 31.12.2014

75.0

21.2

3.1 0.7

GoI FIs / Banks / MFs / FIIs /GDR Individuals Companies / Trusts

Integrated steel plants

Alloy and special steel plantsFerro alloy plant

Iron ore mine

Limestone mine

Dolomite mine

Coal mine

Madhya Pradesh

Odisha

West Bengal

Karnataka

Tamil Nadu

Jharkhand

ChhattisgarhMaharashtra

Note: Map not to scale

Location of Steel Plants & Mines

Present Iron ore Linkages in SAIL

BSP

•Kiriburu (KBR)•Meghataburu

(MBR)•Bolani

•Kiriburu (KBR)•Meghataburu (MBR)

•Barsua• Kalta•Chiria

•Chiria• Gua

• Dalli• Rajhara

•Kiriburu (KBR)•Meghataburu

(MBR)•Bolani

DSP

RSP BSL

IISCO

Bhilai Steel Plant (BSP)• Saleable Steel (SS) Production 2014-15 : 4.33 MT, Post Expansion capacity : 6.56 MTPA• Products: Rails, TMT Bars, Rounds, Heavy Plates, Wire Rods, Light & Heavy Structurals, Semis

Durgapur Steel Plant (DSP)• Saleable Steel (SS) Production 2014-15 : 1.97 MT, Post Expansion capacity : 2.12 MTPA• Products: Wheel & Axle, Rebars, Medium Structurals, Semis

Rourkela Steel Plant (RSP)• Saleable Steel (SS) Production 2014-15 : 2.55 MT, Post Expansion capacity : 3.99 MTPA• Products: HR Coil & Sheet, CR Coil & Sheet, Plates, GP/GC Sheets, CRNO Coil, ERW & SW

Pipes, HR Plates, Special Defence Grade Plates

Bokaro Steel Plant (BSL)• Saleable Steel (SS) Production 2014-15 : 3.38 MT, Post Expansion capacity : 4.18 MTPA• Products: HR Coil & Sheet, HR plates, CR Coil & Sheet, GP / GC Sheets

IISCO Steel Plant (ISP)• Saleable Steel (SS) Production 2014-15 : 0.13 MT, Post Expansion capacity : 2.39 MTPA• Products: TMT Bars, Rounds, Wire Rods, Heavy Structurals, Semis

SAIL: 5 Integrated Steel Plant Production Capacity & Products

SAIL: Performance

Saleable Steel (in Million Tonne)

11.00

11.50

12.00

12.50

13.00

12-13 13-14 14-15

12.4

12.9 12.8

1.000

3.000

5.000

7.000

Q4 - FY14 Q4 - FY15

3.3 3.4

Annual Saleable Steel Production (including Special Steel Plants)

Saleable Steel Production(incl. Spl. Steel Plants)

Production Performance

Saleable Steel from 5 Integrated Steel Plants(in Million Tonne)

10.0

11.0

12.0

13.0

12-13 13-14 14-15

11.9

12.4 12.4

1.000

3.000

5.000

7.000

9.000

11.000

Q4 - FY14 Q4 - FY15

3.1 3.3

Production Performance

BOF Process, 82.4%

THF Process, 16.0%

EAF Process,

1.6%

CC Route74%

Ingot Route26%

Value Added Steel44%

Commodity56%

Crude Steel Production by processProduction of Value Added Steel (5 ISPs)

Production by Process

Production by Process & Sales Mix: FY 15

Longs41%

Flats59%

Production of Saleable Steel (5 ISPs)

SAIL: Expansion And Modernisation Plan

New Sinter Plant No.3 at RSP

RSP: BATTERY-6

Coal Handling Plant under RMHS at ISP

RSP: Blast Furnace Tapping

SAIL’s Expansion & Modernisation Plan

Particulars

Actual production

2014-15

AfterOn-going

Expansion

Hot Metal 15.41 23.5

Crude Steel 13.91 21.4

Saleable Steel

12.84 20.2

in million tonne

Expansion Plan : Technological Shift

Technology Current Status After 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

Ongoing ProjectsThe Expected Outcome:

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.

Enhancement of Production Capacity by addition of 3 new 4060 m3 Blast Furnace.

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

Ongoing ProjectsThe Products to be added:

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

requirements.

Rails for Metro – Railways and dedicated freight corridors.

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 4200 mm.

Ongoing Projects The ongoing expansion has been planned to achieve saleable steel

production of 20.23 million tonne at a cost of Rs. 39,131 crore approximately

In addition, following capex has also been planned for schemes ,as given here:

Value Addition / Product-Mix Improvement Rs. 7,039 crore

Technological Upgradation / Modernization Rs. 3,509 crore

Sustenance including de-bottlenecking, AMR & Environment

Rs. 12,191 crore

Augmenting Raw Material from existing mines & development of new mines

Rs. 10,264 crore

Product Mix - Saleable Steel Production

Semis12% Structurals

14%

Bars & Rods19%

Rly Products8%

PM Plates16%

HR Plates/Coils/S

heets/skelp16%

CR Coils/Sheets

11%

Galvanized Products

3%

PET Products

1%

FY 15

Post Ongoing Expansion

Semis25%

Structurals3%

Bars & Rods12%

Rly Products6%

PM Plates15%

HR Plates/Coils/S

heets/skelp32%

CR Coils/Sheets

4%

Galvanized Products

2%

PET Products1%

Raw Materials

YearHot Metal

(mtpa)

Iron Ore Consumption

(mtpa)Linkages of Iron Ore

Post Expansion

23.46 39

The capacity of existing mines at Kiriburu, Meghataburu, Bolani, Gua & Barsua are being ramped up to meet the requirement of Iron Ore for post ongoing phase of expansion.Two new Pellet Plants (One of 4 mtpacapacity at Gua & another of 1 mtpacapacity at Dalli) have been planned for better utilisation of Iron Ore Fines.In addition to the above, iron ore shall be mined from new mines at Rowghat, Chiria and Taldih.

MineExisting Capacity (mtpa)

Capacity after ongoing expansion

(mtpa)Remarks

Kiriburu 5.5 5.5 Capacity of Existing mines is being ramped up to meet the requirement of the ongoing expansion plan.The entire requirement of the increased capacity shall be met through captive mines.The timeline for mines expansion is expected to be in line with Steel Plants expansion.New Pellet Plant shall use the existing reserve of fines at captive mines.

Meghataburu 5.0 6.5

Bolani 5.0 10.0

Gua 4.0 10.0

Dalli / Rajhara 8.7 7.0

Barsua, Kalta, Taldih

3.3 6.5Environment clearance received from MOEF

Rowghat New 12.0All statutory clearances have been received.

Chiria 0.75 5.8Stage-I Forest Clearance has been obtained

Raw Materials

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, statement 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.

Disclaimer