JSW Steel Ltd.

Presentation to Analysts

Tornagallu (Bellary) 27th March 2006
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Contents
• Group Highlights • JSW Steel • Rights Issue • Project Status

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Overview - O.P.Jindal Organization
O.P. Jindal
P R Jindal Pipes Sajjan Jindal Carbon steel Ratan Jindal Stainless steel Naveen Jindal Power & rail

Jindal Saw Ltd. Jindal United Steel Inc. Saw Pipes Inc.

JSW group
• JSW Steel Ltd. • JSW Energy Ltd. • Southern Iron & Steel Co. Ltd. • South West Port Ltd. • JSW Aluminium Ltd.

Jindal Stainless Ltd.

Jindal Steel & Power Ltd.

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000 people O.Power .P.Highlights Revenues of over US$ 4 bn Assets over US$ 4.Ports 4 Group ranked 548th by Forbes .O.Industrial gases . Jindal Group Diverse business interests .Jindal Group .Steel & related .6 bn Employing over 20. P.

Turnover from US$ 22 mn to over US$ 2 bn in ten years 5 Diversified business in steel. port and aluminium . power.JSW Group .Highlights Turnover over US$ 2 billion World’s largest air separation oxygen plant Employing over 9.000 people JSW group Known for growth and aggression .

JSW Steel… 6 .

Capacity 8 7 6 7 Million ton 5 4 3 2 1 0 2006 2007 2008 2009 2.5 3.JSW Steel .8 4.5 to 7 mtpa in 3 years 7 .1 Capacity to increase from 2.

150 crore: Financing Equity / Internal accruals Debt Total Rs.8 mtpa – Nearing completion • 3.Capex & Financing Plan • Upto 3.8 to 7 mtpa – Rs. in crore : 2550 : 3600 : 6150 8 . 6.

0 1.8 0.1 3.5 0.1 0.7 26% 9 .2 0.8 mtpa capacity Slabs HR Coils HR Plates CR GP PPGI Total finished steel % of value addition 1.JSW Steel -Product Mix Product mix at 3.

7 bn • Market share of 12% in the domestic market • Employee strength over 4000 10 .JSW Steel • Turnover over $1.

Share Holding Pattern – 28.02.06 31% 44% Promoters Institutional Investors FIIs Others / public 10% 15% 11 .

JSW Steel .Key Strengths • Blend of 2 technologies .no petro fuel usage • Integrated from Iron Ore to galvanised and colour coated products • Proximity to sources of rich Iron Ore reserves .30% captive Iron ore at 4 mtpa capacity 12 .

Key Strengths • Sole producer of flat steel in southern region • Waste utilisation up to 85% / Zero effluent discharge • Extremely environment friendly & socially responsible approach 13 .JSW Steel .

Key Strengths • Non unionised work force • Exports to over 50 countries • Long term tie ups with customer 14 .JSW Steel .

Supplies to 589 OEMs across India Shree Precoated Brakes India Tube Products of India 15 .Some Domestic Customers Voltas Ltd.

Some International Customers 16 .

S. Singh JMD & CEO M.N.V.Management Structure Diversified Board & Management Structure Sajjan Jindal VC &MD Dr B. Remuneration. Rao Director (Finance) Board of Directors Promoter Directors 2 Executive Directors 2 Lender Nominee Directors 3 KSIIDC* Nominee Director 1 Independent Directors 5 Audit. shareholders & investors grievance committees *Karnataka State Industrial & Investment Development Corporation 17 .JSW Steel .

Anthony Pedder. Sudipto Sarkar.JSW Steel-Profile of Directors • Independent directors from diverse fields : • Mr. an internationally renowned steel expert • Dr. S. a reputed Chartered Accountant • Dr. an eminent economist • Mr. Uday Chitale. Gupta. Vijay Kelkar. an acclaimed steel expert • Effective Internal control system Sound corporate governance practices 18 . K. a reputed lawyer • Mr.

19 ..JSW Steel Financial highlights.

Mn) Gr oss sal es 86900 58560 27936 FY 0 3 FY 0 4 FY 0 5 E B I DT A 23650 1 5000 71 53 FY0 3 FY0 4 FY0 5 Net cash accr ual s Int erest 5635 4880 FY 0 3 FY 0 4 1 81 80 1 3550 4700 FY 0 5 1 51 8 FY0 3 FY0 4 FY0 5 20 .Financial Trends (Figures in Rs.JSW Steel .

05 31.JSW Steel – Current Financials (Figures in Rs.04 47436 44965 14931 33% 3618 8133 4660 21 Gross sales Net sales EBIDTA EBIDTA Margin Interest Profit before tax Net profit 50312 45969 13383 29% 2788 7090 4459 . Mn) Particulars 9 m onths ended 31.12.12.

47 2.32 1.JSW Steel – Gearing Ratios EBIDTA / Interest Debt / equity 5.07 1.27 4.03 3.33 1.80 5.00 FY 03 FY 04 FY 05 FY '06(9 mths) FY 03 FY 04 FY 05 FY '06(9 mths) 22 .

.JSW Steel Going forward . 23 . .

1 mtpa by FY • Value added products increasing from 38% to 53% by 2008 24 .JSW Steel .8 mtpa by 2008 – Colour coated capacity to 0. 7 mtpa by FY 2009 and 10 mtpa by FY 2011 – Pellet capacity to 5 mtpa by FY 2007 – Slab capacity to 3.2 mtpa by FY 2008 – CR products capacity to 1.Strategy • Volume growth.9 mtpa by FY 2007 – HR Coils capacity to 3.

Strategy • Integration to reduce cost – Allocation of additional iron ore reserves – Investment opportunities in overseas Coal mines for Coal • Maintain gearing of 1 • Investment in cutting edge management practices – Innovation – Quality systems 25 .JSW Steel .

Challenges / Concerns • Delay in tying up further captive raw material source • Declining but yet relatively firm coal prices – valuation of coal mine • Meet the growth imperative at 1:1 debt equity • Talent retention 26 .JSW Steel .

Rights Issue .

36 months from allotment date – Series B : 24 . (without warrants) • Entitlement ratio on equity shares 1:8 • Warrants entitlement of one Series A & one Series B warrant for every equity share offered on rights basis • Warrant conversion period – Series A : 18 .48 months from allotment date 28 . 400 crs.Rights-Broad Terms • Fund raising upto Rs.

Rights-Broad Terms • The terms of warrants issue shall be decided by the committee of the Board • Warrants to be listed on allotment and will be tradable 29 .

Project Status… 30 .

Up to 3.8 mtpa Expansion .Project Status Component Converter Coke oven Lime calcinations Plant Sinter Plant Modernisation of Hot Strip Mill Blast furnace Pellet Plant Slab Caster Status Apr-06 Apr-06 Apr-06 May-06 May-06 Jun-06 Jun-06 Jun-06 Commissioning to be completed by June 2006 31 .

Upto 7 mtpa Expansion .In principle approvals in place • Orders placed: -Blast furnace of capacity 4019 M3 (Largest in India) • Land leveling started: -Blast furnace -BOF and CCP 32 .Status • Financial closure: .

65 *Market value per share is as on 24th March 2006 for all the calculations.5x Rs. wherever required All figures annualised wherever necessary 33 .62% 4. 224 264.26% 18. 84 Rs.Key ratios As on 31st December '05 ROCE ROE EV / EBIDTA Cash EPS Book value per share Market value per share* 17.

THANK YOU 34 .

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