Performance

SAIL’s Expansion Plan

CSR & Environment Management

Awards & Accolades

9 months FY’10 Turnover of Rs. 30,929 crore –decrease of 13% over CPLY.

9 months FY’10 PBT – Rs.7065 crore –nearly same as that of CPLY.

9 months FY’10 PAT - Rs.4669 crore – nearly same as that of CPLY.

9 months FY’10 EBIDTA of Rs.8331 crore - nearly same as that of CPLY

9 months FY’10 EBIDTA to Net Sales of 29% Annualised PAT / Net worth of 19%Debt / Equity Ratio: 0.47:1 as on 31.12.2009

against 0.27:1 as on 31.03.2009. EPS of Rs.15.07, annualised

Financial Results –9 Months FY’10 vs. 9 Months FY’09

Rs. Crore Apr 09Dec 09

Apr 08Dec 08

Increase(+)Decrease(-)

% Change

TURNOVER 30929 35674 (-)4745 (-) 13.3%

EBIDTA 8331 8284 (+) 48 (+) 0.6%

PBT 7065 7116 (-)51 (-) 0.7%

PAT 4669 4688 (-)19 (-) 0.4%

Financial Results –9 Months FY 2009-10vs. 9 Months FY 2008-09

2000

4000

6000

8000

10000

12000

2005-06 2006-07 2007-08 2008-09

5706

9423

11469

9403

2000

4000

6000

8000

9Months FY 09 9Months FY10

7116 7065

PBT (Rs. Cr.) PBT (Rs. Cr.)

Profit Before Tax of Rs.9403 crore in FY 2008-09

9 MONTHS FY10 PBT –Rs.7065 crore

Financial Performance

10002000300040005000600070008000

2006-07 2007-08 2008-09

6202

7537

6175

1000

2000

3000

4000

5000

9Months FY 09 9Months FY 10

4688 4669

PAT (Rs. Cr.)PAT (Rs. Cr.)

Profit after Tax of Rs.6175 crore in 2008-09.

Financial Performance

9 Months FY10 PAT– Rs.4669 crore

30000

33000

36000

39000

42000

45000

48000

'06-07 '07-08 '08-09

39189

45555

48681

Year

Unit : Rs Crore

20000230002600029000320003500038000

9Months FY'09

9Months FY'10

35674

30929

9 MONTHS FY10 Turnover of

Rs 30929 crore Turnover of Rs.48681 crore in FY 08-09

Best ever Sales Turnover

1257

2519 2536

843

1663 1676

200

1200

2200

Q3 FY 09 Q2 FY 10 Q3 FY 10

(Rup

ees

in c

rore

)

PBT PAT

5000650080009500

110001250014000

2006-07 2007-08 2008-09

10967

12955

10942

4000

6000

8000

10000

9Months FY09

9Months FY10

8284 8331

Earning Before Interest Depreciation and Tax Unit : Rs Crore

EBIDTA for 2008-09 Rs. 10,942 crore EBIDTA for 9 Months FY10

Rs. 8,331 crore

8000

9500

11000

12500

14000

2006-07 2007-08 2008-09

1063512704

10689

3000

5000

7000

9000

9Months FY09 9Months FY10

8072 8064

Cash Profits

Unit : Rs Crore

Cash profit for 2008-09 Rs. 10,689 crore

Cash profit for 9 Month FY10 Rs. 8064 crore

Borrowings

6371

14903

212

267

200

300

4000

6000

8000

10000

12000

14000

16000

31.12.08 31.12.09

Borrowings Interest Cost

Borr

owin

gs

Inte

rest

Cos

t Q

1

2000

3000

4000

5000

6000

7000

8000

31-03-06 31-03-07 31-03-08 31-03-09

4298 4181

3045

7539

Borrowing Annual

Year 31-12-2008 31-09-2009 31-12-2009D/E Ratio 0.12 0.38 0.47

Unit : Rs Crore

Investments

16126

23509

1222

1385

1200

1400

10000

15000

20000

25000

31-Dec-08 31-Dec-09

Investments Interest Earned

Shor

t Te

rm In

vest

men

t in

Ban

ks

Inte

rest

Ear

ned

9 M

onth

s

3000

6000

9000

12000

15000

18000

3/31/2006 31-03-07 31-03-08 31-03-09

5645

9034

13136

17714

Investments Annual Unit : Rs Crore

Investment in short term deposits with Banksas on 31-03-2009 Rs. 17,714 crore

Investment in short term deposits with Banksas on 31-12-2009 Rs. 23,509 crore

Net Worth

27116

32046

25000

27000

29000

31000

33000

31-Dec-08 31-Dec-09

4000

9000

14000

19000

24000

29000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

4659

1001112386

17184

23004

27984

Unit : Rs Crore

Net Worth as on 31-03-2009 Rs. 27,984 crore

Net Worth as on 31-12-2009 Rs. 32,046 crore

Sales of 8.73 million tones - growth of 13.8% ascompared to corresponding period of last year.

Semis component in sales of saleable steel is 12% [ 5ISPs].

Saleable steel production of 9.37 million tones - growthof 2% as compared to corresponding period of last year.

Crude steel production of 10.18 million tones – growth of1%as compared to corresponding period of last year.

Special Steel Production 3.44 million tones - increase of20% as compared to corresponding period of last year.

Production through Concast 6.80 million tones - growthof 3% as compared to corresponding period of last year( CPLY).

Coke Rate at 516 kg/t - improvement by 2% over CPLY

Energy Consumption 6.74 (G.Cal/tcs) – improved by 1% over Corresponding Period Last Year.

Avg. Capacity utilisation (Saleable Steel) – 112%

Avg. Capacity utilisation (Hot Metal) – 105%

Avg. Capacity utilisation (Concast Production) – 129%

Performance Highlights – 9Months 2009-10

Major Techno Economic Parameters

Saleable Steel (in Million Tons)

1010.5

1111.5

1212.5

13

'06-07 '07-08 '08-09

12.613.0

12.5

4.000

8.000

12.000

9Months FY'09

9Months FY'10

9.1 9.4

April-December

Production

Including Special Steels Plants

Production of Value added products of 5 ISPs

1

1.5

2

2.5

3

3.5

4

'06-07 '07-08 '08-09

1.46

3.363.73

1.5

2.5

3.5

4.5

9Months FY 09

9Months FY 10

2.9

3.4

April-December

Special Steel Production

20% increase in production of Value Added Products

(in Million Tonnes)

Saleable Steel ProductionPlant-Wise, Quarter-Wise

1110 1134 111242

8 469

46040

5

499

483

865 817 866

95 90 106

0

200

400

600

800

1000

1200

Q3 FY09 Q2 FY10 Q3FY10

BSP DSP RSP BSL ISP

(in Thousand Tonne)

(Five Integrated Steel Plants Only)

2403

505 319

1203

165

1963

3289

887

1116

25

94

930

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

BSP DSP RSP BSL ISP

Semi FinishedFlat ProductsLong Products

Production of Saleable SteelPlant Wise Category wise

(in Million Tonnes)

2008-09 5 Integrated Steel Plants

Semis 18%

Flats 55%

Long 27%

Specific Energy Consumption (Gcal/TCS)

6

6.2

6.4

6.6

6.8

7

7.2

7.4

'06-07 '07-08 '08-09

7.16

6.95

6.74

6.00

6.20

6.40

6.60

6.80

7.00

9Months FY09 9Months FY10

6.78 6.74

Apr-Dec.’09

TE Parameters

Reduction in Energy Consumption

Coke Rate (Kg/THM)

500

510

520

530

540

550

9Months FY09 9Months FY10

525516

Continuous efforts to contain coke rate

500

510

520

530

540

550

560

'06-07 '07-08 '08-09

541

533

521

Coke Rate at 516 kg/thm –lower by 2% over CPLY

TE Parameters

200

205

210

215

220

225

230

'07-08 '08-09 9Months FY'09 9Months FY'10

214 215

223 224

Manpower reduction nearly 6141 during last one year.

Current manpower :1.18 lakh as on 31.12.09.

Tonne Crude Steel /man / year

Labour Productivity

2.5

3.0 3.0

3.8

2.7 2.6

2.4

3.6

2.83.0

2.9

1.5

2.0

2.5

3.0

3.5

4.0

Q1 Q2 Q3 Q4

2007-08 2008-09 2009-10

Including

Special

Steel

Plants

(In Million Tonnes)

Saleable Steel Sales Volume

0.9

1.1 1.1

0.7

0.8

0.8

0.40.4 0.5

0.3

0.5

0.4

0.1 0.1 0.1

0.0

0.5

1.0

1.5

Q3 FY09 Q2 FY10 Q3 FY10

BSP BSL DSP RSP ISP

Plant-wise,

Integrated

Steel

Plants

(In million tonne)

Saleable Steel Sales Volume

11.9

12.3

11.3

9.0

10.0

11.0

12.0

13.0

2006-07 2007-08 '08-09

Saleable Steel Sales Volume

Including Special Steel Plants

7.7

8.7

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

9Months FY09 9Months FY10

(in million tonne)

4.04.2

3.23.6

1.6 1.61.9

2.0

0.4 0.4

0.0

1.0

2.0

3.0

4.0

5.0

2008-09 2007-08

BSP BSL DSP RSP ISP

Plant-wiseSaleable Steel Sales Volume

(In Million Tonnes)

Sales through Dealers NetworkNo. of Dealers and Districts Covered

602 599

1897 1963

400

900

1400

1900

2400

31-03-2008 31-12-2009

Districts Covered Dealers Appointed

Sales through dealer’s network during 9 months FY104.18 lakh tonne (CPLY 3.41lakh tonne)

Sens

ex (

Poin

ts)

Shar

e Pr

ice

(Rs)

Month

Closing Share Price & Sensex as on the last day of the month – Except Jan2010

Performance of SAIL Share price vis-à-vis BSE Sensex

8376

96109

173

151

175

163171 165

197

242

223

94248892

9709

11403

14625 1449415670

1566717127

1589616926 17465 16780

7000

12000

17000

22000

27000

70

90

110

130

150

170

190

210

230

250

270

Jan09 Mar09 May09 Jul-09 Sep-09 Nov-09 Jan-10SAIL

SENSEX

Year Interim %

Final%

Total%

Dividend(Rs. in

Cr)

Dividend Tax (Rs.

in Cr)

2009-10

2008-09

2007-08

2006-07

16%

13.0

19.0

16.0

13.0

18.04

15.0

26.0

37.0

31.0

661

1074

1528

1280

111

181

259

197

Dividend

EXPANSION AND

MODERNISATION PLAN

Road Map For Future

SAIL’s Expansion Plan

ParticularsMillion Tonne

Present After Expansion

Hot metal 14.4 26.2 (23.5)

Crude Steel 13.4 24.6 (21.4)

Saleable Steel 12.5 23.1 (20.2)

Figures in bracket indicate capacity after Implementation of ongoing phase of modernisation and expansion to be

completed by 2012

Technology Current Status

After Expansion

BOF Steel making 77% 100%

CC Route 66% 100%

Pelletisation Plant No Yes

Coke Dry Quenching No Yes

Top Pressure Recovery Turbine No Yes

Auxiliary Fuel Injection in BF Partial coverage Full coverage

Desulphurization of Hot Metal Partly 100%

Thin Slab Casting - Compact Strip Mill No Yes

Beam Blank Casting No Yes

Coupled Pickling & Tandem Mill No Yes

Beneficiation Plant Partial Full

Expansion Plan : Technological Shift

Ongoing ProjectsThe ongoing expansion has been planned to achieve saleable

steel production of 20.23 million tonne, at a cost of Rs. 37,000 crore (USD 8 billion) approximately.

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

Scheme Estimated cost

Value Addition/ Product-mix Improvement Rs. 7,000 crore (USD 1.5 billion)

Technological Upgradation/ Moderanisation Rs. 3,500 crore (USD 0.8 billion)

Sustenance including debottlenecking, AMR and Environment

Rs. 12,300 crore (USD 2.7 billion)

The above details of capex includes an amount of Rs. 7400 crore, including Rs. 6100 crore for expansion and Rs. 1300 for other schemes, already spent during 2007-08 and 2008-09.

Besides, capital schemes relating to augmentation of production from existing mines and development of new mines will be taken up.

3700037000

70003500

12300 22800

1 2 3 4 5

In R

upee

s C

rore

59800

1 Expansion of Existing capacity

2 Value Addition/ Product-mix Improvement

3 Technological Upgradation/ Moderanisation

4 Sustenance including debottlenecking, AMR and Environment

5 Total estimated cost

Ongoing Projects

2000

5000

8000

9Months FY09 9Months FY10

3231

7712

1500

3500

5500

'07-08 '08-09

2181

5233

Capital Expenditure on Expansion and Moderanisation

Amount in Rs. Crore

Total Capex for 2007-08 was Rs. 2181 crore and the Capex for 2008-09 is Rs. 5233 Crore.

Orders for Rs.41,000 crore approximately have already been placed for various Modernisation / Expansion Projects/ Sustenance Schemes.

Various options for raising fund to finance the capex plan are being explored.

Capex Plan for 2009-10 is Rs.10000 crore approximately.

Ongoing Projects

Ongoing Projects

Expected Outcome

Enhancement of Production Capacity and Market Share

World Class Technology and Products

Improved Product mix/ proportion of value added products to increase

Complete elimination of Semi-finished steel

Enhanced Pollution control measures, with environmental conservation

Captive Power generation capacity to increase from 872 MW to 1922 MW

Ongoing ProjectsThe Products to be added:

Auto grade CR Products, Galvanealed Coils/ Sheets

Plates/ Pipes to meet up to API 100 Grade specification

Universal Beams/ Heavy Beams in the sizes up to 1100 mm to support increasing Infrastructural requirements

Rails for Metro-Railways

Increased production of Rails and wheels to meet the increasing requirements of Indian Railways

Quantum jump in Rounds and Structural production leading to elimination of entire semi-finished steel

Wider Plates in the size of 4300 mm

Plant Hot Metal (Mtpa) Saleable Steel (Mtpa)2008-09 Actual

After Expansion

2008-09Actual

After Expansion (2012)

BSP 5.4 7.5( 7.5) 4.5 6.5 (6.5)DSP 2.1 3.5(2.5 ) 1.8 2.8 (2.1)RSP 2.2 4.5(4.5 ) 2.0 4.0 (4.0)BSL 4.0 7.4(5.8 ) 3.4 6.5 (4.2)ISP 0.6 2.9(2.9) 0.4 2.4 (2.4)VISL 0.1 0.3 (0.3) 0.1 0.2 (0.2)ASP - - 0.2 0.4 (0.4)SSP - - 0.2 0.3 (0.3)Total 14.4 26.2(23.5) 12.5 23.1 (20.2)

Capacity increase after Expansion

Figures in brackets indicate capacity after implementation of on going phase of modernisation and expansion to be completed by 2012.

SAIL’S Growth PlanSaleable Steel Production Capacity

Mill

ion

Tonn

e

4.5

1.8 2.03.4

0.4

2.0

1.02.0

3.1

2.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

BHILAI DURGAPUR ROURKELA BOKARO IISCO

Production 08-09 Planned Increase

6.5

4.0

2.42.8

6.5

SAIL’S Growth PlanSaleable Steel Production Capacity

Specialty Steel PlantsM

illio

n To

nne

0.090.17 0.18

0.13

0.260.16

0.00

0.50

VISL ASP SSP

Planned Increase Production 2008-09

0.22

0.34

0.43

Total Existing .45 MT and After Expansion 1MT

RAILWAY MATERIALS

7.4%STRUCTURALS

15.0%

CR COILS / SHEETS

10.4%

COATED PRODUCTS

4.8%

ROUNDS / BARS23.3%

PIPES0.6%

PLATES16.4%

HR COILS / SHEETS

22.1%

Product Mix - Saleable Steel Production

PLATES20.5%

HR COILS / SHEETS

24.1%

RAILWAY MATERIALS

8%

STRUCTURALS5.5%

CR COILS / SHEETS

8.7%

COATEDPRODUCTS

2.8%

ROUNDS/BARS10.2%

SEMIS18.4%

PIPES0.5%

FY2008-09

After Expansion

IRON ORE LINKAGES

Year Hot Metal Production

Iron Ore Consumption

Linkages of Iron Ore

2008-09 14.4 23 Existing Mines

Post Expansion 26 43

Existing Mines + Raoghat, Chiria & Taldih + Thakurani

2020 60 100Existing Mines + Raoghat, Chiria & Taldih + Thakurani

Mtpa

Raw Materials

COAL LINKAGESMtpa

Year Hot Metal Production

Coking Coal Requirement

Linkages for Coking Coal

2008-09 14.4 13.8 Import Component – 70% Indigenous – 30%

Post Expansion 26 23

-Import component to increase-Long term component 90% w.e.f. FY09-Existing mines to be worked/ developed-New alliances/ linkages/ acquisitions to be explored

2020 ~ 60 50

Raw Materials

In-principle approval from Government of Jharkhandfor renewal of Budhaburu, one of the Chira/ Gua iron-ore leases, with reserve of nearly 810 milliontonne, has been accorded. Lease deed for mining of iron ore for Rowghatdeposits was signed in October 2009. With this allstatutory clearances for development of new mine atRowghat has been obtained. After statutory approvals, the production at newTasra collieries has started in November 2009 Action for merger of MEL with SAIL is under process. Setting up of a Joint Venture shipping company withShipping Corporation of India is under progress.

SAIL and POSCO are jointly conductingfeasibility study for utilising FINEXtechnology Feasibility study for setting up CRNO

production facility jointly with POSCO isalso being conducted.

MOU has been signed between SAIL andNMDC for development of Arki LimestoneMine at Himachal Pradesh.

79 villages have been adopted by SAIL as Model Steel Villagesacross 8 states for development of Medical facilities, Education,Roads, Sanitation, Community Centre, livelihood generation &sports facilities in a phased manner. During 2009-10 59 villagesare likely to be completed as Model steel Village.

Corporate Social Responsibility –Model Villages

Performance Highlights – SAIL CSRSAIL has established 61 Primary Health Centres, 8

Reproductive and Child Health Centres, 18 Hospitals and 6Super Specialty Hospitals to provide specialized healthcareto almost 26.7 million people.

It has opened about 138 school in the steel townships toprovide modern education to about 74,000 children. Besidesadopting & providing education & facilities to Tribalchildren, SAIL has provided assistance to over 260 schoolswith more than 55000 students of villages surrounding itsunits.

In this Endeavour, SAIL has achieved a Girl:Boy ratio of 1:1for all levels of education and a survival rate i.e. rate ofretaining enrolled students of 90% in SAIL secondary schools.

•SAIL is providing access to around 56 lakhpeople across 435 villages since inception byconstructing & repairing roads.•By installing 4714 water sources providedwater access to around 37 lakh peopleliving in far flung areas.•More than 4274 health camps have beenorganized in 2009-10 up to December2009, benefiting more than 1.9 lakh people.

Performance Highlights – SAIL CSR

For the financial year 2008-09, the budget for CSR was earmarked as 2% of distributable surplus.

SAIL was adjudged a Finalist of ‘Stivie Award – 2009’.

Bhilai Steel Plant (BSP) – SAIL has been awarded “Golden Peacock Award – 2008” for CSR.

Salem Steel Plant (SSP) – SAIL has been awarded “CSR Award” by Tamilnadu Government for the year 2008-09 for its valuable contribution towards socio-economic upliftment of neglected section of society.

SAIL has bagged the National “National Centre for Promotion of Employment for disabled people (NCPEDP) Shell Helen Keller Award-2009”.

Performance Highlights – SAIL CSR

Outstanding Achievement for Rural and Community Development

Accolades

Accolades

•BSP won Prime Minister’s trophy for the best integratedSteel Plant for the year 2006-07 and 2007-08. BSP has theunique distinction of being adjudged as best integratedsteel plant nine out of total 16.

•Seven Indian Institute Metals Awards won by SAIL whichincluded Metallurgist of the year award, MECONaward, National Sustainability award to BSP and SSP.

•SAIL has won the National Centre for promotion ofemployment for disabled people (NCPEDP) – Helen KellerAward 2009 in the organisational category for promotion ofemployment to disabled people.

Two MoU Excellence Awards in the categories ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.

The Gold Trophy of SCOPE Award for Excellence and Outstanding Contribution to PublicSector Management in the ‘Instituitional’ category for the year 2006-07.

SCOPE Award for ‘Excellence and Outstanding Contribution to Public Sector Management’ Under ‘Individual’ category, for the year 2007-08, to SAIL Chairman, Mr. S K Roongta.

•Gold Trophy of ‘SCOPE Meritorious Award for R &D, Technology Development & Innovation’ for 2007-08.

•In the National Convention of Quality Circles held atBangalore on 21st and 22nd December ’09 22 ‘par-excellence’, 33 ‘excellent’ and 5’distinguished’ awards werebagged by SAIL teams, which is the highest won by any singleorganisation in the country.

•First prize of the national Energy Conservation Awards 2009in the Integrated Steel Plants Sector was awarded to DSPand presented by Hon’ble Union Minister of Power on 14thDecember 2009.

•Institution of Engineers(India) awarded the Dr. MVisvesvaraya Award-2009 and the SAIL Award 2009 to SAILRDCIS team.

AccoladesIn the SCOPE & DPE function SAIL received 4 awards from Hon’ble

Prime Minister which was highest amongst all PSUs Including:

SCOPE Gold Trophy for ‘Excellence & Outstanding Contributionto the Public Sector Management’ – Institutional Category 2006-07

Two Mou Excellence Awards in the categories of ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.

SAIL was awarded ‘SAFA Best Presented Accounts Award 2008’ in thePSE category (Runners Up) by South Asian Federation ofAccountants (SAFA).

8 Gold, 1 Silver and 6 Bronze awards won by SAIL employees’ teamin the International Quality Circle meet held in Cebu, Philippninesin October 09 – highest for any organisation in the country.

•BSP won Prime Minister’s trophy for the best integratedSteel Plant for the year 2006-07 and 2007-08. BSP hasthe unique distinction of being adjudged as bestintegrated steel plant nine out of total 16.

•Seven Indian Institute Metals Awards won by SAIL whichincluded Metallurgist of the year award, MECONaward, National Sustainability award to BSP and SSP.

•Salem Steel Plant received National sustainability Award– First Prize amongst the secondary steel plants/alloysteel plants by the Indian Institute of Metals.

Accolades

Shri Soiles Bhattacharya, Director (Finance) – SAIL, has been awarded as withthe Best CFO award for the year 2009 by Top Ranker’s institute in associationwith Graduate school of Business and administration.

Abbreviations used

ASP Alloy Steels Plant BF Blast Furnace BOF Basic Oxygen Furnace BPL Below Poverty Line BSL Bokaro Steel Limited BSP Bhilai Steel Plant CS Crude Steel CPLY Corresponding Period Last Year DSP Durgapur Steel Plant EBIDT Earnings Before Interest Depreciation & Taxes G.Cal/tcs Giga Calories per tonne of Crude Steel GoI Government of India IISI International Iron & Steel Institute ISP IISCO Steel Plant

JPC Joint Plant Committee Kg/thm Kilo Gram Per Tonne of Hot Metal MEL Maharashtra Elektrosmelt Limited MT Million Tonne Mtpa Million Tonne Per Annum PAT Profit After Tax PBT Profit Before Tax RDCIS Research & Development Centre for Iron & Steel RINL Rashtriya Ispat Nigam Limited RSP Rourkela Steel Plant SSP Salem Steel Plant VISL Visvesvaraya Iron & Steel Plant

Abbreviations used

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