Indian Steel Markets Conference 2018 JINDAL STEEL AND

Indian Steel Markets Conference 2018 JINDAL STEEL AND POWER LIMITED 7 th June 2018 Amit Agarwal President – Sales and Marketing 1

• Overview of steel industry in India • Global steel industry • How domestic steel industry continues to play a major role in nation building • How Indian mills are geared up to meet the changing demand in infrastructure • Construction & Infrastructure to drive growth in India & healthy Indian finished steel demand • Govt. ’s impetus on infrastructure spending & National Steel Policy 2017 • Indian steel industry and landscape • Way forward – Current issues along with remedial measures • JSPL overview and it’s positioning as an enabler in infrastructure growth • Approvals and certifications attained by JSPL • Industry wise bifurcation of material supplied by JSPL • Awards, recognitions and felicitations – Jindal Panther TMT Rebars and JSPL

Overview of Steel industry in India GDP consumption in India Consumers of steel in India 50% Steel sector 2% 50% Other sectors – Automotive, Oil & Gas etc. Construction & Infrastructure sector Others 98% • Infrastructure and construction sectors are the biggest consumers of steel in India • Steel is a major contributor to GDP 22 -Nov-20 Presenter 3

Global Steel Industry: Recovery Started in 2017 on better Economy & Steel Demand-Supply Balance > Global economic momentum bodes well for steel demand growth Strong Global Economy: >Global growth momentum strengthens and is on a broader footing. Solid U. S. fundamental, firming recovery in EU, China re-acceleration, recovery in developing economies. >Moderate rebound in oil prices, contained inflation >Most benign global economic environment since the financial crisis >Growth in India and ASEAN remains on a solid ground >Many developing countries are progressing with structural reforms > Following the closure of outdated induction furnaces in FY 17 , nominal growth rate for steel demand in China increased to 12. 4% / 766 million tonnes > WSA expects 1. 8% world demand growth for finished steel for CY 18 Global steel demand (Mt) China Rest of the world 1, 622 1, 648 835 856 882 672 681 766 CY 15 CY 16 CY 17 E CY 18 E Steel demand recovered across key markets > Tail wind continue to push 1, 537 1, 500 1, 516 828 711 Capacity cuts in China improve supply and demand balance CY 14 >150 mt cuts according to long-term capacity reduction plan >35 mt cuts expected going forward due to stricter environmental policies >protectionism and capacity reduction lead to lower pressure from Chinese Export > Chinese Export Down by 48% from its peak level > Global Steel Capacity Utilization improved in CY 17 80% 11 11 77% 75% 73% 48% 8 73% 72% Source: WSA/Morgan Stanley/JSPL Estimates N. A. Ansari Jan-18 Feb-18 Dec-17 Oct-17 Nov-17 Sep-17 Jul-17 Aug-17 Jun-17 Apr-17 May-17 Mar-17 Jan-17 Feb-17 Dec-16 Oct-16 Nov-16 Sep-16 Jul-16 Aug-16 Jun-16 Apr-16 March '18 May-16 Feb '18 Mar-16 CY 17 Jan-16 CY 16 Feb-16 CY 15 Dec-15 CY 14 Oct-15 CY 13 Nov-15 CY 12 Sep-15 CY 11 5 6% 69% Aug-15 70% 6 Mar-18 74%

Domestic Steel Industry continues to grow and play a major role in Nation Building Crude Steel Capacity Projection 116 FY '16 300 144 Finished Steel Consumption In Million MT (Mt) FY '20 e FY '31 (Go. I Vision) 81. 5 230 8% FY '16 FY '31 e > India’s per capita steel consumption is expected to increase to 158 Kg in 2031 from current 62 Kg+ > India ranks second in terms of low cost of steel production amongst major steel producing countries. > Indian steel industry continues to capitalize on its competencies to invest further. Steel industry’s contribution to National GDP Nearly 2% Steel Industry’s contribution to Index of Industrial Production (IIP) 6. 68% Employment by the steel industry Current Market value of the Indian Steel Industry Total Investment expected till 2025 -2030 Over 7 lakh direct $75 bn $187 Bn N. A. Ansari

Indian mills and domestic steel industry are geared up to meet the demand in infrastructure > Indian steel capacity road map >Construction and Infrastructure to Drive Growth in India Top 3 -4 contributing to majority of FY 18 -21 E Capex Growth 147. 6 >Following established trajectory, India’s per capita steel consumption is expected to increase to 175 Kg in 2025; potentially a 250 Mt crude consumption opportunity, 126. 3 58. 3 55. 3 >GDP Per capita has gone up to ~$2000/Capita in March ’ 18 compared with $1, 751. 85 in March ’ 17, will likely to go further 8. 6 7. 3 10. 0 19. 0 5. 1 6. 3 10. 0 12. 5 18. 0 >Government is pushing for more steel intensive manufacturing industries and Construction practices Others 5% JSPL 69% RINL 16% ESSAR - Tata Steel 52% 23. 0 JSWL 28% 19. 1 21. 4 SAIL 12% FY 17 E FY 22 F Source: CRISIL Research > Indian steel demand forecast Increased government spending to spur growth CAGR 3. 4% (MT) 120. 0 CAGR 6 – 6. 5% 7 -7. 5% 6. 9% 5. 9% 100. 0 80. 0 60. 0 40. 0 20. 0 - 3. 9% 3. 5% 4. 5 - 5. 5% 5 - 6% 2. 9% 0. 8% 71. 0 73. 5 74. 0 77. 0 81. 5 83. 9 88. 1 92. 9 113. 3 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 E 2017 -18 P 2018 -19 P 2021 -22 P Steel consumption Source: CRISIL Research Source: CRISIL/World Bank/JSPL Estimates Y-o-Y Growth (RHS) 8. 0% 7. 0% 6. 0% 5. 0% 4. 0% 3. 0% 2. 0% 1. 0% 0. 0%

Construction and Infrastructure to Drive Growth in India – Large head room to offer Construction and infrastructure accounts for over 50% of India’s steel consumption, the segment’s per–capita steel use is 31 kg, compared to an average 111 kg for other emerging economies. India Among the Lowest per Capita India’s per Capita Installed Electricity Consuming Countries Rail Infrastructure Low Compared to Other Countries Large Section of India’s Population Still Lives in Non-metal/RCC Roofedhouses Steel to Cement Ratio in Construction. Electricity Rail Housing Per Capita Consumption KWh Railway Length (Km)/per Million Population Country Ratio 25, 000 800 % of Households Split by Predominant Material of Roof in India CAGR (%) 100 9 12 3% 16 11 UK 1. 50 US 1. 19 Germany 1. 10 Japan 1. 07 India 0. 30 716 80 610 20, 000 20 600 29 5% 55 (2)% 60 467 15, 000 40 400 81 69 10, 000 20 200 0 5, 000 1991 74 India 0 0 20, 000 40, 000 GDP (PPP)/Capita 60, 000 5 Source: BCG Steel Vision 2025, November 2013. 53 2001 2011 GI/Metal/Asbestos Sheets Concrete 0 US Russia France China India Others (Grass/Thatched/Bamboo/Mud Tiles Etc. ) N. A. Ansari

Indian domestic Finished Steel Demand will likely to remain healthy Sector Wise Finished Steel Consumption Projection (Source: Min of Steel/MECON) Current Demand (FY '16) Growth CAGR (%) Projected Demand (FY 31) Construction & Infrastructure Steel/O&G/Highway/Bridge/Airport/ ports/Urban Infra/Pre. Fab buildings/Power/ Real Estate(resid+Industrial) 50. 5 Mt 7% 138 Mt Capital Goods/Consumer Durable/Electrical Goods /Tube /Wire/Pressure Vessels/Defence /General Fabrication/General Enginnering 18 Mt 8% 50 Mt Automotive 8. 2 Mt 9% 28 Mt Other Transport 2. 4 Mt 9% 8 Mt Packaging and Others 2. 4 Mt 7% 6 Mt Total 81. 5 Mt 8% 230 Mt Per Capita Steel Consumption 61 7% 158 Engineering & Fabrication Rail lines, Wagons Coaches, Ship Building, Coastal Petroleum, non-petroleum, LPG Gas Cylinders > Major steel demand will come from Infrastructure & Construction sector - - 8

Government’s Impetus on Infrastructure Spending It is estimated that, on average, a 1% increase in infrastructure investment is associated with a 1. 2% increase in GDP growth > Mega programme for Road Construction (Bharatmala) > Estimated Infra Capex planned : Total $650 Billion in 5 25% 163 23% 17% >Gov initiated major reforms, project implementation becomes swifter • Reduction of Stuck projects • Project running behind Declined (Current 25% Vs 56% in March 13 • Better Payment terms & Speedier Dispute Resolution • Open & Transparent Bidding in various projects > National Highway construction pace accelerated • Current 26 KM/day Vs 3 -6 KM/day during 2012 -14 9% 6% 5% 2% 2% 147 109 > Significant Railway reform & Spending > Emergence of New Infra Segments: • Civil Aviation : Nextgen Airport for Bharat (NABH Nirman) & UDAN Scheme • Impetus on Solar & Renewables Power • Metros in A & B Class city 11% years (2018 to 2023) 70 Power Gen Indian Railways Road > FDI in Infra Picks Up Power Distri Fig in $ Billion 60 Metro Railways 41 Power Trans 32 Urban Infra 16 10 Airports Ports

National Steel Policy (NSP) 2017 By 2030 – 2031, NSP 2017 is aiming for - Production of 255 million tonnes Crude steel capacity of 300 million tonnes Robust finished steel per capita consumption of around 160 kgs 22 -Nov-20 Presenter 10

NSP 2017 is an effort to – • Steer the industry to achieve it’s full potential • Enhance steel production • Focus on high end value added steel while being globally competitive The policy covers critical areas such as – • Self sufficiency in steel production • Globally competitive steel manufacturing capabilities • Domestic availability of key raw materials at competitive rates • Facilitating foreign investment and enhancing domestic steel demand 22 -Nov-20 Presenter 11

Way Forward Current Issues - Remedial measures - • Cancellations or issues in iron ore and coal mine allocations • Transportation of steel through coastal shipping - cost effective route • Delays in land acquisition • Greater focus on the domestic industry • Obtaining environmental clearances • Innovation • Increased logistics cost • Indigenous research & development • Increased raw material costs • Reduce the dependence of infrastructure sectors on imported steel • Higher operating cost for companies 22 -Nov-20 Presenter 12

THE JOURNEY OF JINDAL STEEL & POWER LIMITED Annual turnover US$ 3. 3 billion, part of diversified O. P. Jindal Group 7. 5 MTPA total Iron & Steel making capacity Committed investments exceeding US$ 30 billion in the future Total Steel Consumption in country- 90 Mn. T JSPL Share: 4. 5% of steel demand catered by JSPL 3. 6 MTPA ISP at Raigarh, 5 MTPA ISP at Angul, Odisha, 2 MTPA ISP at Sohar, Oman,

JSPL OPERATIONS Present Capacities Raigarh (3. 6 MTPA) Angul (5. 0 MTPA) Patratu (1. 60 MTPA) • • 1. 4 MTPA Rebar Mill • 1. 2 MTPA Plate Mill • 1. 0 MTPA Rebar, Light Structural • 0. 6 MTPA Wire Rods 1. 0 MTPA Plate Mill 0. 75 MTPA Rail and Structurals 0. 6 MTPA Medium and Light Structurals 0. 7 MTPA Semis 350 MW Captive Power Plant 4 x 135 MW CPP at Dongamahua Barbil • 9. 0 MTPA Pellet Plant Oman • 2 MTPA SMS • 1. 5 MTPA DRI • 1. 4 MTPA Rebar Mill Nalwa • 0. 25 MTPA Rebar & Wire Rod

Product basket – JSPL along with annual production figures 5 lac tonnes per year 20 lac tonnes per year 4. 5 lac tonnes per year 3 lac tonnes per year 15 lac tonnes per year

Industry wise bifurcation of material supplied by JSPL • • Construction & Infrastructure industry – 70% Wire drawing industry – Automotive, Railways etc. – 10% Oil & Gas industry – 10% Other sectors – Power, Coal, Nuclear, Thermal – 10% 22 November 2020 PJM 16

Approvals & Certifications

Awards won by JSPL and Jindal Panther TMT Rebars Realty Plus Interior Exterior Awards – Product Brand of the year (Steel and TMT category) - 2018 IBC Info. Media India’s Most Trusted Brand Awards 2017 – Steel and TMT category ET NOW MODI (Making of Developed India) awards -Best Steel Company of the year 2018 Winner of Porter Prize - 2018

THANK YOU 11/22/2020 19

Indian steel industry & landscape 3% growth in domestic consumption - modest increase owing to slow off take from construction & infrastructure industries Growth of 12%in India’s total finished steel production recorded at 102 million tonnes in 2016 -17 (78. 47 % of total) *130 million tonnes is installed capacity at present in the country Capacity lying idle with plants having state of the art facilities is 28 million tonnes (21. 53% of total) Total finished steel witnessed a growth of 4. 5% in 2016 -17 Import of finished steel declined by 38%