JINDAL STEEL & POWER LIMITED

CORPORATE PRESENTATION

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JSPL Group Companies

Jindal Steel & Power Limited (JSPL) Jindal Power Limited (JPL) Jindal Petroleum Limited (JPTL)

Snapshot - Steel
Operating 3 Million Ton capacity Steel Plant in Central India (Chhattisgarh) Operating largest Coal Based Sponge Iron Plant in the world (Capacity - 1.4 Million ton) The Company has track record of continuous growth of 10 years The corporate philosophy of JSPL has been consistent growth through focus on its core sectors Produces A Class 120 mtr long rails, the worlds longest rails Total Sales of INR 54.60 billion and PAT of INR 12.37 billion in FY 2007-08 EBIDTA level of around 40% consistently, which is amongst the highest in the industry

Snapshot - Power
Set up 1000 MW Thermal Power Plant in Central India (Chhattisgarh) First Mega Power Project in the Private Sector Constructed 258 Km long 400 KV double circuit transmission line Constructed 55 Km long 220 KV double circuit transmission line Operating 340 MW power plant based on washery rejects & waste gases 2nd largest power producer in the private sector in India

Coal & Iron Ore Mines

Extracting 12 million ton thermal coal from captive mines Largest producer of Coal in private sector Operating 6 milion ton capacity coal washery Setting up additional 6 million ton capacity coal washery Extracting about 3.0 million ton iron ore from captive mine

Industrial Park
Established an Industrial Park where 32 Industrial Units are already in operation Supplying 100 MW power to these units through 220 KV dedicated transmission line Total 70 units are planned in this Industrial Park - Ultimately 300 MW power will be supplied to the Industrial Park Tariff of power supply is far less as compared to State Govt. tariff Holding distribution licence for supply of power to Industrial Park

Product Mix
Business Segments Iron and Steel Manufacturing Iron Ore and Coal Mining Power Generation Product Portfolio Sponge Iron / Pig Iron Hot Rolled Parallel Flange Beams & Structurals Semis (Slabs, Blooms, Rounds, Billets) Rails Plates & Coils Power

Integration
Iron Ore from Mines Coal from Mines Washery Rejects Sale Coal Washery
COAL

Char/Flu Gases

ROTARY KILNS
FINES

POWER PLANT* Sale EAF

Sale

CSEB/OTHERS

Coking Coal

COKE OVEN

Sponge Iron

PLATE MILL
PLATES & COILS

COKE

BF

SINTER PLANT

Pig Iron

Sinter Sale

Rounds/ Blooms/ Slabs/ Billets Sale

RAIL & UNIVERSAL BEAM MILL

Sale

Rails

Structurals

Sale

* Captive Power Plant supplies power to all facilities

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Facilities
Raigarh, Chhattisgarh

Existing Capacity (MTPA) Sponge Iron (coal based) Steel Rails & Structurals Plates Slabs,Rounds,Blooms & Billets Hot Metal Captive Power Plant 1,370,000 3,000,000 750,000 1,000,000 1,250,000 1,500,000 340 MW

Steel Production Globally: 2008

Global crude steel output has shrunk 1.2% (-) in 2008. It is nearly 25% lower, yoy. Liquidity shrinkage has discouraged inventory holding and encouraged excessive inventory liquidation, raised speculation on prices, caused raw materials supply disruptions and affected Steel producers. Source: Steel and Natural Resources Strategy Research (SNRSR) 10

Top ten Steel Producing Countries in the World

(Production figures in million tonnes)
Country
China Japan United States Russia India South Korea Germany Ukraine Brazil Italy

Rank
1 2 3 4 5 6 7 8 9 10

2008
502.0 118.7 91.5 68.5 55.1 53.5 45.8 37.1 33.7 30.5

2007
489.2 120.2 98.2 72.4 53.1 51.5 48.6 42.8 33.8 31.5

Source:SteelandNaturalResourcesStrategyResearch(SNRSR)

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Source:SteelandNaturalResourcesStrategyResearch(SNRSR) 12

India - Projected Trends of Steel Consumption

Source:SteelandNaturalResourcesStrategyResearch(SNRSR) EstimatesbasedonJointPlantCommittee(JPC)andindustryinformation

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Financials

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Financials at a Glance

(Rupees in Million)

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 AUDITED AUDITED AUDITED AUDITED AUDITED AUDITED Unaudited (12 Months) (12 Months) (12 Months) (12 Months) (12 months) (12 months) (Apr-Dec-08) INCOME STATEMENT Gross Turnover Net Turnover Net Profit After Tax Cash Profit BALANCE SHEET Gross Fixed Assets (incl. WIP) Networth Borrowings Share Capital: Preference Equity SIGNIFICANT RATIOS Operating Margin (%) Net Profit to Sales (%) Return on Net Worth (%) Long Term Debt Equity Ratio (Time) Book Value (INR/Share) EPS (INR/Share)

10017 8891 1451 2671

14039 12729 3054 4342

24673 2271 5157 7658

29055 26177 5729 8581

39487 35488 7030 11745

61807 54560 12369 17681

65628 58914 11796 15039

15040 5712 8852 100 146

19669 8539 10260

28759 13174 14959

43893 18379 27454

58669 24742 35077

65794 37211 38633

83639 49650 50131

154

154

154

154

154

155

39% 16% 25% 1.41 195 52

40% 24% 36% 1.09 277 100

40% 23% 39% 1.11 428 167

40% 22% 31% 1.20 597 186

41% 20% 28% 1.07 803 228

40% 23% 33% 0.90 242# 80#

36% 20% 32% 0.81 321# 76#

# EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07 15

Consistent Growth- 30 Quarterly PAT (Consolidated)

10000 9000 8000

(Rupees in Million)

8998

7647
7000 6000 5000
4436

4000 3000

4097

3191

*
2000 1166 1000 263 0
Se p01

2025 1899 1571

2501 2774

1466 1235 1239 1215

263
De c01 Ma r02

296

389 603 316 Ju

n02 Se p02 De c02

595 502
Ma r03 Ju n03

1506 1454 1264 1502 1531

583 802
Se p03 De c03 Ma r04

Ju n04

Se p04

De c04

Ma r05

Ju n05

Se p05

De c05

Ma r06

Ju n06

Se p06

De c06

Ma r07

Ju n07

Se p07

De c07

Ma r08

Ju n08

Se p08

De c08

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Financials - Investors Faith

(Rupees in Million)

160000 140000 R S IN M IL L IO N
Public 17%

159718

120000 100000 80000 60000 40000 20000 0

2003-04

10

s e Tim
72303 57655

FI/Banks/MFs/ FIIs 24%

Promoters 59%

31677 15446

2004-05

2005-06

2006-07

31 Jan'09

Shareholding Pattern - Dec,08

Market Capitalisation

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Future Growth Drivers

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Future Growth Drivers - Orissa

Project Profile
PROJECT : 6 MTPA Integrated Steel Plant & Captive Power Plant Angul, Orissa 1. 2. 3. 4. 5. Coal Gasification & Gas Based DRI Blast Furnace Steel Making Facilities Flat Products (Plates and HR Coils) Power Plant : 4.0 MTPA : 3.0 MTPA : 6.0 MTPA : 6.0 MTPA : 810 MW

LOCATION : FACILITIES :

RESOURCES :

1. Coal Mine , estimated reserves 228 Million Tons, allotted 2. Iron Ore Mine, to be allotted as per MOU with the Govt of Orissa

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Facilities under implementation

Orissa
S.No
1. 2. 3. 4.

Project
Plate Mill DRI Pellet Plant (at Barbil) Power

Capacity
1.5 MTPA 2.0 MTPA 5.0 MTPA 810 MW

Project Cost (Rs. Crore)

Expected date of Commissioning

Status of Financial Closure

Achieved Achieved Achieved Expected by April, 2009

1,548 September, 2010 3,141 December, 2010 650 July, 2009 3,482 1st Unit - August, 2010. Thereafter one unit after every two months 1,288 December, 2010 10,109

5.

Steel Melting Shop Total

1.6 MTPA

Expected by June, 2009

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Future Growth Drivers - Jharkhand

Project Profile
PROJECT : 6 MTPA Integrated Steel Plant & Captive Power Plant LOCATION FACILITIES : : Patratu, Jharkhand 1. 2. 3. 4. 5. Blast Furnace Steel Making Facilities (BOF Route) Flat Products Long Products Power Plant : : : : : 6.0 MTPA 6.0 MTPA 3.0 MTPA 3.0 MTPA 1000 MW

RESOURCES

1. Two Coal Mines, combined estimated reserves 320 Million Tons, allotted 2. Iron Ore Mine, with estimated reserves of 80 Million Tons, allotted

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Facilities under implementation

Jharkhand
Capacity Steel Plant 2.0 MTPA (Wire Rod & Rebars) Facilities -Coke Oven : 1.0 MTPA -Blast Furnace : 2.2 MTPA -Sinter Plant : 3.0 MTPA Project Cost (Rs. Crore) 5,700 Expected date of Commissioning March, 2012 Financial Closure By December, 2009

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Future Growth Drivers - Raigarh

Project Profile
PROJECT : Addition of 3 MTPA Integrated Steel Plant & Captive Power Plant LOCATION FACILITIES : : Raigarh, Chhattisgarh 1. 2. 3. 4. DRI (Gas based) Steel Making Facilities Medium Section Mill Power Plant : : : : 2.0 MTPA 3.0 MTPA 0.6 MTPA 540 MW

RESOURCES

1. Existing Coal Mines at Raigarh having reserves of about 200 million tons 2. Existing Iron Ore Mines at Sundergarh, Orissa 3. Prospecting licence for new Iron Ore Mine in Bailadila recommended by State Government. (Estimated Reserves : 80 Million Tonnes)

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Facilities under implementation

Raigarh
S.No
1.

Project
Power Plant

Capacity
270 MW 270 MW

Project Cost (Rs. Crore)

Expected date of Commissioning

Status of Financial Closure

Achieved Expected by June, 2009 Expected by September, 2009 Expected by September, 2009

1,100 March, 2010 1,100 September, 2010 2,500 March, 2011 650 June, 2010

2. 3.

DRI - Gas Based Medium Structural Mill Total

2.0 MTPA 0.6 MTPA

5,350

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Future Growth Drivers - El Mutun, Bolivia

Project Profile
Agreement with the Bolivian approved by the parliament Estimated reserves of Iron exploitation - 20 Billion tons Ore government in area of

The Company proposes to set up the following facilities. Pelletization Plant Direct Reduced Iron Power Plant - 10.00 Million MTPA - 6.00 Million MTPA 450 MW

Steel Making Facilities - 1.81 Million MTPA

The total investment proposed is $2.1 billion over the next 8 years Proposed financing at a debt-equity ratio of 60:40 The revenues will start flowing from 2010 the year

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Future Growth Drivers

Captive Power Generation Jindal Steel & Power Limited
Existing Capacity at Raigarh Additional proposed Raigarh (135 MWx4) Proposed addition at Orissa (135 x 6) Proposed addition at Jharkhand Total Proposed Capacity (between 2012-15) 340 MW 540 MW 810 MW 1000 MW 2690 MW
Expected Date of Commissioning

Operational by 2010-11 by 2010-11 by 2011-12

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JSPLs Coal To Liquid Project

Government of India allotted Ramchandi Promotional Coal Block in the State of Orissa with estimated reserves of 1,500 Million MT Production Capacity of 80,000 Barels per day (4.0 MMTPA) Technical tie-up with M/s Lurgi of Germany Fixed Bed Dry Bottom Technology will be used Total Project Cost : Rs. 42,000 Crores

The above project is aimed at enhancement of energy security by reducing dependence on imported Crude.

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1000 MW O P Jindal Super Thermal Power Plant, Raigarh

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Installed Capacity of Top 5 Countries

(In Thousand MW)
Thermal Hydro Nuclear Others Total MW % of World Generation Per Capita Cons. 200506 (KWH)

United States China Japan Russia India

689.5 253 168 139.6 92.2

79.4 83 22 44.7 36.0

98.7 2.2 46 21.2 4.1

17.4 0 0.7 0.02 12.2

884.9 338 237 205 144.50

25.22 9.64 6.75 5.86 3.48

13338 2180 8076 5642 631

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Comparative per capita consumption of electricity (Kwh)

10000
8365

7500

5000
2980 2596 1695 1802 646 563 612

2500

0
OCCD Countries Middle East Latin America China Asia Africa India World Average

Source:CentralElectricityAuthority 30

The Power Situation in India

Capacity in 1947 Capacity in 2008 Demand Rise Present peak demand deficit : 1363 MW : 144,000 MW : 10% p.a. : 12%

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Generation Capacity (May 2008)

Generation Capacity (MW)
8% (Renewable)
12194

25% (Hydro)
36033

92216 4120

3% (Nuclear)

64% (Thermal)

Total 144550 MW
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Thermal Installed Capacity till May 2008

Thermal (MW)
(1% Diesel) (16% Gas)
14716 1202

(83% Coal)
76299

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Capacity Addition Target During XI Plan (2007-2012)

Thermal Nuclear Hydro Total

: : : :

59,693 MW (75.8%) 3,380 MW (4.3%) 15,627 MW (19.9%) 78,700 MW (100.0%)

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Generation Capacity Addition 2008-09 and Achievement till May 2008

12000 10000 8000 6000 4000 2000 0 Hydro
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11061 9340

Target Achievement

1097 125

310 Ther.

660

435 Total

Nec.

Jindal Power Limited - Subsidiary Company

Commissioning of 1000 MW Power Plant
250 MW 250 MW 250 MW 250 MW - Unit 1 - Unit 2 - Unit 3 - Unit 4 : : : : December 2007 April 2008 June 2008 September 2008

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Salient Features of 1000 MW Project

First Mega Power Project in the Private Sector JPL has been assigned AA Rating by ICRA in the 1st year of Production

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Salient Features
Constructed 6.948 kms Cross country Pipe conveyor for coal transportation. This is the longest pipe conveyor in India.

Constructed a Dam which was completed in a record time period of 2 working seasons.

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Salient Features
Operating largest coal mine in the Indian private sector

Largest 6 Million Ton Capacity Coal Washery in Indian Power Sector

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Salient Features

Constructed 258 km long 400 kV double circuit transmission line which was completed in the record time of 1.5 years This 400 KV transmission line is the first line constructed without any Joint Venture with Power grid First private power plant which is connected to the Central Transmission Utility (CTU, Power Grid)

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Financials
Fin. Year 2007-08 Particulars Gross Generation (Million units ) PLF % Net Sales ( Rs Crores ) PAT ( Rs Crores )
Few Days Operation*

Financial Year 2008-09 2008 -09 Q1 Q2 Q3 Total 962 59% 293.6 41.3 1490 70% 653.9 314.7 1951 88% 1160.7 574.6 4403.0 ---2108.1 930.6

113 75% 125.3 19.4

* For the Period 8th Dec '07 till 31st March '08

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Future Growth Drivers

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Future Growth Drivers

Brownfield Expansion Plant (4x600 MW) : 2400 MW Status : Order placed on BHEL in December 2008 for BTG Unit Order Value on BHEL - Rs. 5040 Cr. Water approvals received Land for main plant already acquired Technical Consultant Development Consultant Pvt. Ltd. (DCPL) appointed SBI Capital Markets Ltd. appointed as advisor and syndicator

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Future Growth Drivers

Project Cost : Project Cost : 12,800 Cr. Financing on 75 : 25 Debt Equity Debt Equity : Rs. 9,600 Cr. : Rs. 3,200 Cr.

Equity to be funded from internal accruals Financial closure expected by December, 2009

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Hydro Power
Two Joint Venture Agreements executed with Hydro Power Development Corporation of Arunachal Pradesh Limited (HPDCAPL) for development of 4500 MW Hydro Projects in Arunachal Pradesh Detailed Project Report (DPR) and infrastructure development to be completed in 5 years Setting up of these projects will take about 8 years after preparation of DPR Estimated project cost of Etalin (4000 MW) is Rs. 21,820 Crore and Attunli (500 MW) is Rs. 4,172 Crore

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Jindal Petroleum Limited

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Jindal Petroleum Limited

Introduction

Jindal Petroleum Ltd. is currently engaged in Oil & Gas Exploration Awarded 4 Oil & Gas Exploration Blocks in Georgia in Jul./Aug. 2008 Awarded 1 Block in India under New Exploration Licensing Policy(NELP - VII) in Rajasthan Development of Palmer Gas and Condensate Field in Bolivia in progress

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Jindal Petroleum Limited

Planning for Exploration & Production of Oil & Gas in Georgia

Production Sharing Contract (PSC) for 4 Oil & Gas Exploration Blocks in Georgia (Block No. - VIIA, IX, X & XIIIA) executed in January, 2009 Exploration activities commenced Many blocks have large nos. of test wells done earlier showing oil Looking forward to speedy Exploration of Oil & Gas in Georgia so as to be able to contribute to Economic Development of Georgia

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Jindal Petroleum Limited

Planning for Exploration & Production of Oil & Gas in Georgia

Block X

Block X

Block IX

Photos of some of the test wells

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Jindal Steel & Power Ltd.

Corporate Social Responsibilities undertaken by the company in the vicinity of its Steel Plant and Upcoming Projects

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Some of the accolades that we have to our credit include:

National Energy Conservation Awards 2001, 2002, 2003, 2004, 2005, 2007 & 2008 in Integrated Steel Plants Category JSPL figures among Top-20 "BEST COMPANIES TO WORK FOR" as per a survey by Business Today January 2009 One of the Ten Fastest Growing Large Size Companies (Dalal Street Journal 2006) 2nd Most Investor Friendly Company, Business Today 2008 Golden Peacock National Quality Award 2008 Golden Peacock Environment Management Award 2008 Think Odisha Leadership Award in Corporate Social Responsibility 2008 FICCI Annual Award in recognition of Corporate Initiatives in Sports 2006 Greentech Environmental Excellence Award 2006 and 2003 Golden Peacock Award for CSR Initiatives 2006 National Safety Award (Mines) 2004, 2005 and 2006

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THANK YOU

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