JSW Steel Limited

Investor Presentation
November 2014
 Agenda

Overview Value Proposition Performance Business

Overview Environment

2
 JSW Group – overview
USD 11 billion group with presence across the core sectors
JSW Energy*: Engaged across JSW Infrastructure: Engaged in
JSW Steel*: India’s leading
the value chain of power development and operations
integrated steel producer.
(Steel Capacity: 14.3MTPA )
business(Operational plant of ports. (Goa, Jaigarh, and
3,140 MW) Dharamtar Port)
JSW Aluminium: A foray to
JSW Cement: Slag cement set up alumina refinery and JSoft Solutions: An IT & ITES
plant of 5.3 MTPA capacity develop and operate bauxite arm of JSW group
mines

Group market cap ($6,417 mn**) JSW Group FY 2013-14

Gross Turnover: 10,742
JSW Energy EBITDA: 2,157
1,882 Profit after Tax: 213
JSW Steel Cash Profit: 900
4,535 Cash Profit= PAT + Depreciation
All figures are in USD millions
USD/ ` = 60.0998 (RBI reference rate as on Mar 28, 2014)

As on Sep 30, 2014

* Listed company
** USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 3
 JSW Steel – India’s leading steel manufacturer
 Integrated steel manufacturing
 Installed capacity 14.3 MTPA, facilities – from raw material
at six strategic locations in Leading steel processing plants to value-
South and West India
Integrated
manufacturer added product capacities
manufacturing
in India process

 Pan India marketing and

distribution network including Strong
450 retail Shoppes, export  Combination of state-of-
distribution Technological the-art steel making
presence in ~100 countries
across the 5 continents network and competence technologies: Corex, DRI,
Blast Furnace
export
presence

Diversified Global
product presence
 Extensive portfolio of products – portfolio  International presence in mining
HR, CR, galvanized/galvalume, pre-
assets (Chile, US and Mozambique)
painted, TMT bars, wire rods,
and value-added facilities (Plate and
special steel bars, tinplates, rounds
Pipe mill in US)
and blooms

4
 Transformational journey to market leadership

FY 2002 FY 2010 FY 2014

 CAGR FY’02–14: 20%
Capacity (MTPA) 1.6 7.8 14.3
 FY 2016 expected capacity of 18MTPA

Production (MTPA) 1.3 6.0 12.2  CAGR FY’02–14: 21%

Revenue
282 3,164 8,313  CAGR FY’02–14: 33%
(USD mn)

EBITDA
46 675 1,488  CAGR FY’02–14: 34%
(USD mn)

EBITDA/ton(1)
36 118 125  CAGR FY’02–14: 20%
(USD/ton)

Market Cap  Significant value creation with 48x increase in

86 3,752 4,065
(USD mn) market value(2)

Technology Corex Corex, BF Corex, BF, DRI  Adopting industry leading technologies

Flats, long, special Flat, long, special

 Continuously expanding product canvas with
Product Mix Flats steel and value steel & high value-
focus on high-end value-added products
added added auto grade

Unrelenting progress through the economic cycles

(1) Calculated as consolidated EBITDA / Saleable steel, (2) From 31st March 2002 to 31st March 2014, (3) USD/ ` =
61.61 5
 Combination of Organic and Inorganic growth
FY2016
Key Projects in progress/pipeline:
 18 MTPA
 Dolvi Works capacity expansion to 5 MTPA
 Vijayanagar Works capacity expansion to 12 MTPA(3) 2014
 Phase II of new Cold Rolling Mill (CRM-2) at Vijayanagar Works  New CRM2—Phase I
 4 MTPA—Pellet Plant(2)
 0.2MTPA Electrical Steel facility at Vijayanagar Works 2013
 1 MTPA—Coke Oven Plant(2)
 14.3 MTPA post
Ispat merger  Acquired 50% stake in
Vallabh Tinplate
2011  Acquired Welspun Maxsteel
 Acquisition of 49.3%
2012
stake in Ispat
2009  HSM II Capacity
Expansion to 5 MTPA
2006  7.8 MTPA 2010
2004
 3.8 MTPA  JSW-JFE Strategic Partnership
 Acquired SISCOL(1)
 3.5 MTPA of HSM II
2008
 Iron Ore mines  Coal mining concessions in US
2002 2005 2007
acquired in Chile
 1.6 MTPA  2.5 MTPA  4.8 MTPA
 Color Coating Line  CRM of 1.0 MTPA
 Acquired EURO IKON  Acquisition of Plate and Pipe Mill in US
 Coal mining concessions in Mozambique

Continuously evaluating opportunities to deliver value enhancing growth

(1) Southern Iron and Steel Company, (2) Amba River Coke Limited
(3) Subject to regulatory approval 6
 JSW – JFE strategic partnership

 One of the largest FDI in the Indian Metals and Mining space – Equity infusion by JFE of `5,410 Crores (~$1.2 bn) for 14.99% equity stake
 Deleveraged Balance Sheet to support next phase of growth
 Access to cutting edge technologies and fast growing automotive steel market
 Operational excellence to result in cost reduction

General technical assistance

Value creation for both the partners
JSW Steel:
 Focused expansion plans in India
 Optimized capital structure through
deleveraging
 Access to cutting edge technologies
JFE:
 Presence in growing Indian market
 Future growth through equity
participation
 Strategic production base in India for
existing automobile customers
Automotive technology agreements
Benefits to JSW Steel:
 Access to fast growing auto steel
market
 Short learning curve
 Application engineering
 New product development
 Benchmarking and personnel training
agreements for sustainable business
operations
Operational excellence and cost
reduction by:
 Improvement in quality, productivity,
yield , and energy efficiency
 Sharing best maintenance, environment
management, and safety practices
 Benchmarking, training and talent sharing
 Standardization of processes

7
Balanced corporate strategy

 Maintain market share of 13–14% through selective organic and inorganic growth
 Undertake brownfield expansions at low specific investment cost per ton
Selective
 Consider inorganic opportunities that are value accretive
Growth

Diversification of  Increase proportion of high margin value-added products

Product Profile and  Diversify customer base, both within India and abroad
Customer Base  Continue to focus on rural markets in India

 Committed to sustainable and eco-friendly technologies to drive

Focus on Resource Optimization growth
 Focus on cost reduction and energy efficiency

 Continue to evaluate raw material assets in India and abroad

Strengthening Backward and Forward
to secure key raw material supplies and to reduce cost of
Integration
production by targeting strategic tie-ups and investments

 Continuously seeks to improve financial profile

Prudent Balance Sheet Management  Manage capacity expansion and debt profile to
capture market opportunities without excessive risk

8
 Strong and balanced Board comprising experts of
eminence & integrity

Chairperson—Emeritus Executive Directors Independent Directors Nominee Directors

Seshagiri Rao M.V.S Kannan Vijayaraghavan, V. P. Baligar

Savitri Devi Jindal Joint Managing Director & FCA and Certified Nominee Director of
Group CFO Management Consultant KSIIDC

Promoter Director Dr. Punita Kumar Sinha Hiromu Oka

Dr. Vinod Nowal
Chief Investment Officer at Nominee Director of JFE
Dy. Managing Director
Sajjan Jindal Asia Tigers Steel Corporation
Chairman & Managing
Jayant Acharya Dr. Saibal Kanti Gupta
Director
Director (Commercial & Retired Professor at IIT,
Marketing) Bombay

Sudipto Sarkar
Senior Advocate,
Calcutta High Court
Uday Madhav Chitale
Senior Partner at M/s.
M.P. Chitale & Co.,
Chartered Accountants
Dr. Vijay Kelkar
Ex Finance Secretary,
Ex Secretary of MoP&G,
Ex Chairman Finance
Commission

Board fundamentally committed to sustainable business

9
 Sound Corporate Governance
 Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system,
Audit Committee compliance with regulations by the Company and its subsidiaries
 Comprises of four Non-Executive Directors
 Identifies qualified persons and recommends to the Board the appointment, removal and evaluation of
Nomination and
Directors
Remuneration
 Responsible for drafting policy on specific remuneration packages for Executive Directors and
Committee
approving the payment of remuneration to managerial personnel
Stakeholders  Responsible for the functioning of the investor grievances redressal system
Relationship Committee  Comprises of four Non-Executive Directors
Project Review  Closely monitors the progress of projects; ensuring timely completion within the budgeted outlay
Committee  Continuously reviews new strategic initiatives
 Periodically reviews risk assessment and minimization procedures
Risk Management
 Has formed a sub-committee—“Capex Risk Evaluation Committee” to evaluate the risks associated
Committee
with capex proposals including mergers and acquisitions
Corporate Social  Formulates and recommends to the Board a CSR Policy including list of projects and programs
Responsibility (CSR)  Strong commitment towards society, the total spending on CSR activities was ~2.3% of net profit in
Committee FY14

Business Responsibility  Responsible for the adoption of “National Voluntary Guidelines on Social, Environmental and Economic
/ Sustainability Responsibilities of Business” (NVGs)
Reporting Committee  Policies created for or linked to the nine key principles of the NVGs

All key committees in place, having adequate independent director representation

10
 Agenda

Overview Value Proposition Performance Business

Overview Environment

11
A platform of strength and agility
1 Strong fundamentals to boost India steel demand

2 Multi-location manufacturing facilities in India

3 Strategic overseas presence

4 Diversified product profile

5 Domestic market leader with strong export presence

6 Strong sales and marketing platform

7 Focus on operational efficiency

8 Strategic expansion aided by strong project execution

9 Proven ability to acquire and turnaround assets

10 Robust financial profile

12
 1 Strong fundamentals to boost India steel demand
 Decisive mandate in India general elections
 Strong investor confidence and raised expectations of fast-
paced decision-making and economic reforms
 Upturn in overall GDP growth(1)
(%)
 Potential for substantial growth in steel
consumption(2)(6)
o World Per Capita Consumption is ~225 Kgs.
o India Per Capita Consumption is ~58 Kgs.
1,400

Per capita Steel Consumption in 2013 (Kg.)

•

6.7% 6.5% 1,200 South Korea

4.5% 4.7% 5.3%
1,000
800 China Taiwan

FY12 FY13 FY14E FY15E FY16E 600 Japan

Germany
 Infrastructure sector is a key focus area for the new 400 Italy
Canada
government 200 Russia USA
Mexico France
 Infrastructure investment expected to reach ~$1 trillion 0 Brazil
during 2012-2017(4) India
(200)
 New government is focused to give impetus to infrastructure
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
sector
 Automobile sector expected to turn around GDP per capita in 2013 ($)

 India projected to become 3rd largest automotive market in
the world by 2016(5)
 Faster economic growth and government's policies is likely
to drive volumes and revive the automobile sector
 India steel consumption to rise at a faster rate
o India’s steel consumption was 74MT in 2013 and is
expected to rise to ~76MT in 2014 and ~81MT in 2015(3)

With the growth in economy, JSW Steel is well positioned to be part of the India growth story

(1) Reserve Bank of India, (2) World Steel Association, World Bank, IMF, (3) World Steel Association, (4) 12th Five-
Year Plan (India), (5) IHS Automotive, (6) Bubble size represents total steel demand of respective country 13
 2 Multi-location manufacturing facilities in India
Vasind & Tarapur (JSCPL*)
Dolvi: 3.3 MTPA
 0.32 MTPA HR Plates
 2 MTPA Blast Furnace  1.2 MTPA GP/GC
 1.6 MTPA DRI  0.5MTPA Colour Coating Line
 3.6 MTPA Twin Shell ConArc  30 MW Power Plant
 55 MW Power Plant

Kalmeshwar (JSCPL*)
 0.61 MTPA GP/GC
 0.19 MTPA Colour Coating Line
Vijayanagar: 10MTPA

 1.65 MTPA Corex Salem: 1 MTPA

 8.4 MTPA Blast Furnaces
 855 MW Power Plant  1 MTPA Blast Furnaces
 0.5 MTPA Blooming Mill
 60 MW Power Plant

Leveraging locational advantage to increase market share strategically in the Southern and Western regions of India

*JSW Steel Coated Products Limited

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 3 Strategic overseas presence
US coal mines
 JSW Steel ownership: 100%
 Acquisition cost: $70mn
 2 of 7 mines are operational
 Alloy Dock—Load Out Facility

US plate and pipe mill

 JSW Steel ownership: 90%
 Acquisition cost: $810mn
 Capacity: 1.2 Net MTPA Plates and 0.55
Net MTPA Pipes
 Acquired in 2007
 Opportunity for diversification in terms
of products, markets and geographies

Mozambique coal mines

Chile iron ore mines  JSW Steel ownership: 100%
 JSW Steel ownership: 70%  5 mining licenses awarded
 Acquisition cost: $252mn  Early stage development in progress
 Started operations in FY11
 Maritime concession to develop cape size
port in North Caldera

Strategic overseas presence for backward integration and value-added facilities

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 4 Diversified Product Profile

Slabs HRC HR Plates GC CRC

Wide Offering of
Flat and Long
Products
Color Billets Blooms TMT Wire Rods
Coated
 Diversified portfolio to address growing demand for value-added steel
Continuously
 Commissioned new facilities to further enrich product mix
Increasing Value
 Leveraging JFE Steel’s well-established manufacturing technology for high value-added products for auto-
Added Products
grade steel

 Enhanced focus on cold rolled, galvanised and galvanneal products for body
Automotive panels of automobiles
Grade Steel  Manufactured at a new CRM2 complex
Developing New  Largest color coated facility to address construction, warehousing and roofing
Products, Capturing Color Coated requirements
Niche Markets Products  State-of-the-art color coating line for appliance grade products used in
consumer durables

 Establishing Cold Rolled Non-grain Oriented (CRNO) steel plant to address

Electrical Steel domestic demand by substituting imports of high grade electrical steel

Continuously enriching product mix

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 Domestic market leader with strong export
5 presence

India Finished Steel

12.9% 12.6% 7.6% 1.8%
Consumption Growth(1)

15% 16% JSW Export Turnover as  Penetrating further to capture growing domestic
23% 25% % of Total demand with unique marketing strategy – unique
nationwide retail network of more than 450 outlets of
JSW Shoppe and JSW Explore
77% 85% 84% JSW Domestic Turnover
75%  Maintaining leadership position in India – 13.2% share in
as % of Total
India in FY14
 Ability to re-align sales effort and shift between
FY08 FY10 FY12 FY14 domestic and export market as per market conditions
 Largest exporter of steel products out of India
 Indian apparent steel use remained flat at 1.8% in CY13
 Exports to high demand regions such as Asia, Middle
 Global apparent steel consumption grew by 3.6% in CY13 East, Europe and the US – presence in over 100
 JSW recalibrated its strategy and focused on ramping up countries
exports resulting into higher growth in volumes

Flexibility to shift between domestic and international markets based on market conditions

(1) World Steel Association. India finished steel consumption data for calendar year (CY07 corresponds to FY08).
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 6 Strong sales and marketing platform
 Multi-sectoral volume growth Segmented approach to address different retail segments
 Optimizing market mix and product mix to derive
‘JSW explore’
maximum benefit from sector growth
 Branded, multiple product service
 Leveraging export presence center for steel solutions
Metro /
 New product approvals for Original Equipment  Just-in-time solution with in-house
Manufacturers (OEMs) and automotive customers Urban profiling lines and Value Added
 Increase in value added products leading to incremental Services
growth in focus sectors and also facilitating import  Franchisee Model
substitution
 Focused on Retail Sales – increased reach and penetration
Urban / ‘JSW Shoppe’
Semi-  Steel distribution
 Significant growth in retail outlets (“JSW Shoppe”)
urban  Enhanced customer experience
450
350

174 ‘JSW Shoppe Connect’

2 Semi-  Smaller retail format linked to JSW
explore/Shoppe
urban /  Last mile link to talukas/rural areas
FY08 FY10 FY12 FY14
Rural  Sales to end consumers and
MSMEs

Increased customer focus and market penetration

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 7 Focus on operational efficiency

Diverse blend of technology High labour productivity Integrated operations

 Coke Making: Recovery and Non-  Improving labor productivity:  Integrated manufacturing facilities:
recovery Coke Ovens Current production of ~1,096 tons/ From pelletisation / beneficiation to
 Agglomeration: Pelletisation and employee(1) downstream value-add capabilities
Beneficiation Plants
 In-house training programs internal  Dedicated port and railway siding for
 Iron Making: Blast Furnace, Corex, faculty logistics support
Sponge Iron (DRI)
 Continuously investing, building and  100% assured power supply through
 Steel Making: Basic Oxygen Furnace
enhancing competencies captive power plants and
(BOF), Electric Arc Furnace (EAF), Conarc
arrangements with JSW Energy and
 Casting: Continuous Casting, Thin Slab the power grid
Casting, Billet Casting

Resulting in operational efficiency

 Reduced raw material costs

 Focus on process improvements
 Waste gas utilization for power generation
 Efficient operations resulting in low conversion cost

High level of integration and technological expertise leading to reduced production cost and time

(1) Total production (12.17MT) divided by total no. of employees on Company payroll (11,099) in FY14
19
 Strategic expansion aided by strong project
8 execution
Strong project execution capabilities …. Major on-going Projects
 Experienced in-house project management team  Vijayanagar Works:
 Supported by cross-functional team (commercial, finance and legal  Continuous Annealing Line (CAL-2) of 0.95 MTPA
department)
 0.2 MTPA non-grain oriented Electrical Steel Project
 Established long-term relationship with key domestic and
 Capacity expansion from 10 MTPA to 12 MTPA by setting up
international suppliers
certain new facilities and debottlenecking/ modification of
 Savings in procurement cost by negotiating firm prices for follow-on existing facilities
orders
 50,000 TPA capacity Service Center to handle the products
… at low specific investment cost(1) of Electrical Steel Complex
 Reduced specific investment cost/ton of capacity
 Dolvi works
expansion shows cost efficiency
 Capacity expansion from 3.3 MTPA to 10 MTPA to 5 MTPA
by setting up certain new facilities and debottlenecking/
modification of existing facilities
7.8 Mtpa 11 Mtpa  Modification of Tunnel Furnace to replace natural gas with
3.8 Mtpa • FY 2009 surplus coke oven gas
• FY 2012
• USD 559/mt
• FY 2007 • USD 545/mt  Modification of DRI plant to use coke oven gas as partial
• USD 550/mt
2.5 Mtpa replacement of natural gas
• FY 2006
• USD 682/mt  Salem Works
1.6 Mtpa  Setting-up of Reheating Furnace in Bar Rod Mill, Coke Oven
• FY 2003 and Turbo Generator
• USD 923/mt

Focus on low cost and returns accretive brownfield projects to capitalise on expected demand recovery

(1) Vijayanagar works expansions

20
 9 Proven ability to acquire and turnaround assets
JSW Steel has a proven track record of acquiring troubled assets and turning them around in record time by closely
integrating them with its existing operations thus creating synergies and optimizing cost

Case Study: Turnaround strategy at JSW Ispat’s Dolvi plant

December 2010
 Plant under maintenance
 Loss making at EBITDA level
 High interest cost
 Financially distressed
Completed Initiatives—FY2011–2014 Road Ahead
 Infusion of equity  Capacity expansion to 5MTPA
 Alignment of marketing strategies resulting in  Ramp-up of backward integration
freight synergies and VAT benefits projects
 Reduction of high cost working capital funding o 4MTPA pellet plant(1)
 Refinancing of existing debt o 1MTPA coke oven(1)
 Electricity sourcing from JSW Energy at  Further operational
competitive prices improvements underway
 Commissioning of waste gas based 55MW
Power Plant, Railway Siding, and Lime
Calcination Plant

 Inability to service existing debt

 Exit from CDR  Operational improvements underway
 Inadequate cashflows
 Generating positive EBITDA  Profitability to improve substantially
 Corporate debt restructuring (CDR) case

Able to leverage an acquisition to maximum value accretion through application of knowledge and experience

(1) Implemented in a wholly owned subsidiary Amba River Coke Limited.

21
 10 Robust financial profile

Strong track record of

 Achieved significant sales growth despite weak economic and sluggish domestic
volume and revenue demand in past 2 years
growth
Superior profitability
 Resilient operations with improved EBITDA margin marked by several
supported by efficient productivity and cost improvement measures
operations
 Prudent financial ratios across liquidity, leverage and profitability parameters
Well-capitalized
balance sheet  Adequate liquidity levels owing to prearranged funding in place for capacity
expansions and a committed working capital facility

 Diverse sources of funding

Financial flexibility to  Strong relationships with over 50 banks/financial institutions with access to low
raise capital cost credit
 Healthy mix of local and foreign currency debt

Strong positioning as  Strong EBITDA margins, low leverage and higher returns on invested capital as
compared to peers compared to global peers

22
 Strong positioning compared to peers
EBITDA Margin (CY13/FY14)(1)
(%)
31.2%
17.9% 19.4%
15.5% 14.9% 12.6% 12.0% 11.0% 10.9% 9.6% 8.0%
4.6% 3.0%

JSW Steel JSW Steel CSN Severstal Magnitogorsk Evraz Gerdau Tata Steel Hyundai Steel Steel Dynamics Arcelor US Steel ThyssenKrupp
(Consolidated) (Standalone) Iron and Steel Mittal

Total Debt/EBITDA
(x)
8.8x
7.6x
4.9x 5.0x 5.1x
3.8x 4.3x
3.1x 3.0x 3.5x 3.5x
2.3x 2.6x

JSW Steel JSW Steel Severstal Magnitogorsk Steel Gerdau Arcelor Mittal Evraz US Steel Tata Steel CSN ThyssenKrupp Hyundai
(Consolidated) (Standalone) Iron and Steel Dynamics Steel

Return on Average Capital Employed(2)

(%)
11.8% 12.8% 12.2%
10.1%
8.8% 7.8%
6.1% 6.0% 5.5%
3.2%
2.0% 1.7% 1.5%

JSW Steel JSW Steel CSN Severstal Tata Steel Steel Dynamics Gerdau ThyssenKrupp Evraz Group Hyundai Steel Magnitogorsk Arcelor Mittal US Steel
(Consolidated) (Standalone) Iron & Steel

Financials as of FY13 (FY ending December) for all peers except JSW Steel and Tata Steel (FY14 ending March) and
ThyssenKrupp (FY13 ending September), (1) Calculated as EBITDA/ Revenue, where EBITDA is post adjustment of
any one-off items, (2) Calculated as EBIT/ Average Capital Employed (net worth + long-term borrowings + short- 23
term borrowings + current maturity of long-term borrowings + net deferred tax liabilities)
 Agenda

Overview Value Proposition Recent Business

Performance Environment

24
 Key highlights – 2QFY15

 Gross Turnover: `12,996 crore

 Net Sales: `11,886 crore
Standalone  Operating EBITDA: `2,430 crore
performance  Highest ever Crude Steel production: 3.30 million tonnes
 Saleable Steel sales: 3.07 million tonnes
 Net debt to equity: 1.11x and Net debt to EBITDA: 2.93x

 Gross Turnover: `14,859 crore

Consolidated  Net Sales: `13,692 crore
performance  Highest ever Operating EBITDA: `2,791 crore
 Net debt to equity: 1.56x and Net debt to EBITDA: 3.46x

25
 2Q volumes – standalone
Crude Steel Production Saleable Steel Sales
11% 6% -2% 7%
YoY QoQ YoY QoQ
3.30 3.13 3.07
3.10 2.88
2.98

2QFY14 2QFY15 1QFY15 2QFY14 2QFY15 1QFY15

2QFY14 2QFY15 1QFY15 2QFY14 2QFY15 1QFY15

Flat 2.45 2.61 2.43 Flat 2.59 2.47 2.32

Long 0.46 0.56 0.52 Long 0.46 0.48 0.47

Semis 0.08 0.12 0.08

All figures are in million tonnes

26
 1H volumes – standalone
Crude Steel Production Saleable Steel Sales
10% 5%
YoY YoY
6.40 5.68 5.94
5.84

1HFY14 1HFY15 1HFY14 1HFY15

1HFY14 1HFY15 1HFY14 1HFY15

Flat 4.69 5.05 Flat 4.70 4.79

Long 0.91 1.08 Long 0.88 0.96

Semis 0.10 0.20

All figures are in million tonnes

27
 Quarterly sales highlights – consolidated
3.14^ 3.10^ 2.86^
23% 33% 29%
27% 26% 27%
77%
2.30* 2.31* 2.09* 67% 71%
10% 15% 14%
24% 24% 23%
66% 62% 63%

2QFY14 2QFY15 1QFY15

2QFY14 2QFY15 1QFY15 Value added & special Products Other products
OEM Retail Auto Exports

 Domestic sales grew 10%QoQ vs. all India steel demand growth of 0.9%QoQ in 2QFY15
 Share in all India steel export sales increased to 62% in 2QFY15 vs. 54% in 1QFY15
 Share of Value-added & Special Products sales increased to 33% in 2QFY15 vs. 29% in 1QFY15
 Sales to Auto sector grew 52%YoY and 13%QoQ
 Cold-rolled products sales grew 75%YoY and 42%QoQ;
 Coated products sales increased by 25%YoY and 9%QoQ

Source: JPC and JSW Steel, * Domestic sales in million tonnes

^ Total sales in million tonnes – JSW Steel Standalone + JSW Steel Coated Products (net-off inter-company sales) 28
 Retail sales highlights – consolidated
Retail sales (‘000 tonnes)
36% 38% 41%

549 543
476 64% 62% 59%

2QFY14 2QFY15 1QFY15

2QFY14 2QFY15 1QFY15 Retail - Others Sales Retail - Branded Sales

 Launched TruSteel (branded HR Sheets)

 Retail Sales grew by 14% on QoQ basis
 Cold-rolled products sales surged 29%YoY and 38%QoQ

29
 New product development/approvals for Auto &
White goods
Steel Type: Micro-Alloyed Steel Type: High Strength Steel Type: High Strength
High Strength Steel Steel, 440 Mpa Steel Dual Phase, 590 Mpa
End use: Engine Bracket/ End use: Rail roof side inner/ End use: Front Frame/ Rear
Suspension Mounting Body Pillars cross members/ Twist Beams

Steel Type: Carbon Steel- Steel Type: Medium Carbon Steel Type: Ultra-low carbon
Coated Steel high strength steel, 340 Mpa

End use: Body panels/Side End use: Brake pad/ Web End use: Door Panels
Cabinet for White goods

30
 2Q Financials – standalone

Particulars 2QFY14 2QFY15

` Crores USD mn ` Crores USD mn
Gross Turnover 12,325 2,000 12,996 2,109
Net Sales 11,308 1,835 11,886 1,929
Underlying EBITDA 2,234 363 2,620 425
Diminution in value of investments - - 190 31
Operating EBITDA 2,234 363 2,430 394
Other Income 121 20 119 19
Finance Cost 689 112 720 117
Depreciation 685 111 699 113
Exceptional Items (839) (136) - -
Profit Before Tax 141 23 1,131 184
Tax 40 6 369 60
Profit after Tax 101 16 762 124
Diluted EPS (`)* 3.85 31.16

*Not Annualized
USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 31
 1H Financials – standalone

Particulars 1HFY14 1HFY15

` Crores USD mn ` Crores USD mn
Gross Turnover 22,545 3,659 25,397 4,122
Net Sales 20,543 3,334 23,256 3,774
Underlying EBITDA 3,983 646 5,081 825
Diminution in value of investments - - 190 31
Operating EBITDA 3,983 646 4,891 794
Other Income 193 31 217 35
Finance Cost 1,331 216 1,443 234
Depreciation 1,329 216 1,363 221
Exceptional Items (1,692) (275) - -
Profit Before Tax (176) (29) 2,303 374
Tax (57) (9) 740 120
Profit after Tax (120) (19) 1,563 254
Diluted EPS (`)* (5.62) 63.97

*Not Annualized
USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 32
 Operating EBITDA movement – standalone

` crore/ USD mn
$104
639 $14
89 $394
$363 2,430
(278)
2,234 (212)
($45)
(43) ($3)
($7)

EBITDA Volume NSR Cost Mix Others EBITDA

2QFY14 2QFY15

USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014)

33
 Operational performance – JSW Steel Coated
Products

Million tonnes
Volumes 2QFY14 2QFY15 1HFY14 1HFY15
Production* 0.35 0.41 0.69 0.81
Sales 0.39 0.41 0.72 0.81

` crore

Key P&L data 2QFY14 2QFY15 1HFY14 1HFY15

Turnover 2,234.2 2,537.1 4,172.4 5,042.2
Operating EBITDA 78.2 108.0 157.1 203.2
Net profit After Tax 0.4 10.9 3.3 18.3

*Including Job Work

34
 Operational performance – US Plate & Pipe Mill

Production (net tonnes) 2QFY14 2QFY15 1HFY14 1HFY15

Plate Mill 92,328 1,02,748 183,584 2,05,442
Utilization (%) 37% 40% 36% 41%
Pipe Mill 8,521 11,752 16,953 19,882
Utilization (%) 6% 9% 6% 7%

Sales (net tonnes) 2QFY14 2QFY15 1HFY14 1HFY15

Plate Mill 80,031 86,084 161,881 1,81,590
Pipe Mill 8,466 16,641 18,060 25,870
USD mn
Key P&L data 2QFY14 2QFY15 1HFY14 1HFY15
Turnover 75.76 94.45 155.52 187.91
EBITDA + Other Income (2.05) 2.54 (1.45) 6.56
Profit After Tax (16.98) (12.71) (30.62) (23.10)

Net tonnes = 0.907 metric tonnes

35
 Operational performance – Chile

USD mn
Particulars 2QFY14 2QFY15 1HFY14 1HFY15
Production (Tonnes) 215,224 2,24,387 424,847 4,45,123

Sales (Tonnes) 219,500 2,21,025 373,398 5,46,547

Turnover 26.43 18.24 43.79 50.31

Operating EBITDA 5.34 (1.76) 6.20 (2.11)

Profit after Tax 2.88 (2.70) 2.16 (5.81)

36
 2Q Financials – consolidated
Particulars 2QFY14 2QFY15
` Crores USD mn ` Crores USD mn
Gross Turnover 13,866 2,250 14,859 2,412
Net Sales 12,796 2,077 13,692 2,222
Underlying EBITDA 2,348 381 2,812 456
Provision due to Coal blocks de-allocation - - 21 3
Operating EBITDA 2,348 381 2,791 453
Other Income 51 8 26 4
Finance Cost 756 123 855 139
Depreciation 803 130 851 138
Exceptional Items (851) (138) - -
Profit Before Tax (11) (2) 1,112 180
Tax 119 19 374 61
Share of Associates and Minority Interest 14 2 11 2
Profit after Tax (116) (19) 749 122
Diluted EPS (`)* (5.12) 30.63
*Not Annualized
USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 37
 1H Financials – consolidated
Particulars 1HFY14 1HFY15
` Crores USD mn ` Crores USD mn
Gross Turnover 25,021 4,061 29,012 4,709
Net Sales 22,937 3,723 26,759 4,343
Underlying EBITDA 4,227 686 5,424 880
Provision due to Coal blocks de-allocation - - 21 3
Operating EBITDA 4,227 686 5,403 877
Other Income 70 11 80 13
Finance Cost 1,474 239 1,699 276
Depreciation 1,553 252 1,646 267
Exceptional Items (1,713) (278) - -
Profit Before Tax (442) (72) 2,138 347
Tax 87 14 756 123
Share of Associates and Minority Interest 32 5 23 4
Profit after Tax (497) (81) 1,405 228
Diluted EPS (`)* (21.25) 57.44
*Not Annualized
USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 38
 Net debt movement – consolidated
` crore/ USD mn
$338
2,083
$5,822 $44 $5,803
35,870 273 35,756
(2,450) (20)
($398) ($3)

Net Debt* New Loan Taken Repayments Fx Impact Movement in Net Debt*
as on Jun'14 FD / MF as on Sep'14

Particulars 30.06.2014 30.09.2014

Cash & cash equivalent (` crore) 503 523
Net Debt/Equity (x) 1.59 1.56
Net Debt/EBITDA (x) 3.62 3.46

*Net Debt excludes Acceptances

USD/ ` = 61.6135 (RBI reference rate as on Sep 30, 2014) 39
 Agenda

Overview Value Proposition Recent Business

Performance Environment

40
 Global economy
60

55
 2014 global growth projection revised down to 3.3%

PMI
 Recent print suggests moderation in US activity levels post 50
strong growth in 2QCY14
45
 Feeble consumption, lower exports and very low inflation

Jan-12

Jan-13

Jan-14
Jul-11

Jul-12

Jul-13

Jul-14
Apr-11

Apr-12

Apr-13

Apr-14
Oct-11

Oct-12

Oct-13
in Eurozone do not bode well
US Eurozone Japan China
 After a sharp decline in 2QCY14 Japanese demand is likely
to sustain moderate growth
15
 Chinese government re-affirms commitment to prevent a 10

IIP (% YoY)
sharper slowdown, but no growth acceleration in sight 5

 Economic activies in EMEs are lackluster driven by fiscal 0

tightening and adverse trade flows -5
-10

Jul-11

Jul-12

Jul-13

Jul-14
Jan-12

Jan-13

Jan-14
Apr-11

Apr-12

Apr-13

Apr-14
Oct-11

Oct-12

Oct-13
US Eurozone Japan China

Global economic recovery hinged upon US consumption, policy support in Europe and China

Source: IMF , Bloomberg, Reuters and JSW Steel

EMEs: Emerging Market Economies 41
 Global steel scenario
Steel demand growth outlook (%YoY) Chinese monthly steel exports (mn tonnes, annualized)
2014F (Apr'14) 120
2014F (Oct'14) 100

6.1
2015F (Oct'14) 80
6.7

6.6

6.0
60
40
4.0
4.0

20

3.3
3.4
3.3
3.1

3.0
2.9

1.5
0

1.0
1.9

Mar-12
Oct-11
Sep-09

Sep-14
Nov-13
Jul-10

Jun-13
Aug-12
Dec-10
May-11
Feb-10
Apr-09

Apr-14
Jan-13
EU US MENA India China

HRC prices ($/tonne)

800  World Steel Association pares 2014 steel demand
730 forecast from 3.1% (Apr’14) to 2%, primarily driven by a
660 cut in China demand growth from 3% to 1%
590
520  Steel inventories show an uptick across major markets
450  Regional HRC prices are being driven by continued
Mar-13

Mar-14
Dec-12

Dec-13
Sep-13

Sep-14
Jun-13

Jun-14

softness in raw material prices, low demand and

increased exports from China, Japan and Korea
North America ExW Europe ExW
Black Sea export FOB China export FOB

Weak demand and rising steel exports from China an area of concern

Source: World Steel Association, Bloomberg and JSW Steel

42
 Indian economy and steel industry
2.6%
0.9%

20.5 21.1
18.5 18.6 1QFY15
2QFY15  2QFY15 Crude Steel production increased by 2.6%QoQ

 Steel demand grew by 0.9%QoQ due to seasonal

weakness and overall subdued activities
Crude Steel Production Apparent Finished Steel
Consumption*
 Imports have surged especially from China and Korea,
and exports dropped on the back of lower demand in
developed markets and intensifying competition from
31.9% Chinese exports.

2.2
 Improvement in overall activity levels seem to be
-11.1%
getting right-shifted - while medium term business
1.7 1QFY15
sentiment remains strong, expected revival of
1.4 2QFY15
1.3 investment cycle now appears likely in FY16

Finished Steel Imports Finished Steel Exports

Weak external economy and rising imports an area of concern

Source: JPC and JSW Steel

All figures are in million tonnes, * Net of double counting effect 43
 Forward looking and cautionary statement

Certain statements in this report concerning our future growth prospects are forward looking statements, which
involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such
forward looking statements. The risk and uncertainties relating to these statements include, but are not limited to
risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition
within Steel industry including those factors which may affect our cost advantage, wage increases in India, our
ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, our ability to commission mines within contemplated time and costs, our ability to raise the finance
within time and cost client concentration, restrictions on immigration, our ability to manage our internal
operations, reduced demand for steel, our ability to successfully complete and integrate potential acquisitions,
liability for damages on our service contracts, the success of the companies in which the Company has made
strategic investments, withdrawal of fiscal/governmental incentives, impact of regulatory measures, political
instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our
intellectual property and general economic conditions affecting our industry. The company does not undertake to
update any forward looking statements that may be made from time to time by or on behalf of the company.

44
Thank you

45