Sahaviriya Steel Industries PLC

Thailand Focus

30 August 2012

1

The information contained in this presentation is intended solely for your personal reference only. If you

are not an intended recipient, you must not read, disclose, copy, circulate, retain, distribute or take any

action in reliance upon this material.

This presentation is not intended to substitute your own analysis and investigation, and should not be

considered a recommendation to any recipient of this presentation. Some statements contained herein

are forward-looking statements identified by the use of forward-looking terminology such as “may”, “will”,

“expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words, which are subject to

various risks and uncertainties. These statements include statements with respect to Sahaviriya Steel

Industries Public Company Limited (the “Company” or “SSI”)’s, Sahaviriya Steel Industries UK Limited

(“SSI UK”)’s and their subsidiaries (collectively referred to as “SSI Group”) corporate plans, strategies and

beliefs and other statements that are not historical facts.

This presentation is prepared based on the assumptions and beliefs of SSI Group’s management in light

of the information currently available to the Company involving risks and uncertainties which may cause

the actual results, performance or achievements to be materially different from any future results,

performance or achievements expressed or implied by such forward-looking statements. Nothing in this

presentation is, or shall be relied on as promise or representation of the Company as to the future.

Disclaimer

2

Overview of SSI

Agenda

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

3

SSI’s Milestones & Snapshot

• Started its operation with Slab

capacity of 3.6 mmtpa

• First slab produced in April 2012

• SSI was established by Sahaviriya Group, and

incorporated as a public company

• Became the first and only conventional

standalone Hot Strip Mill in Thailand

1990

• Invested in TCRSS

• Established PPC to operate deep sea

port in Prachuap Khirikhan

• Started its operation with HRC

capacity of 1.8 mmtpa

• Became a listed-company on the SET

1994 1995

• Expanded its HRC

capacity to 2.4 mmtpa

1997

• Invested in TCS to extend

further downstream

• Set up WCE to provide engineering

& maintenance services among the

group of companies

1999

• Acquired TCP’s iron and steel making facilities

through its overseas subsidiary, SSI UK

• Began SSI UK restart project to refurbish its

facilities

2011

2012

2013 • Installed two shore

cranes (100 tons each)

2004 2012

• Reached 26 mmt of

accumulative HRC

production, the first steel

producer in Thailand

• Expanded its HRC capacity

to 4.0 mmtpa, with P/O

capacity of 1.0 mmtpa

1994

1994

2012

2013

• Pulverized Coal Injection (PCI)

project expected to be in use

“Coastal Mill” #1 SSI and

its downstream mills are

integrated with the deep

sea port

Perfect strategic location

for steel business

Bang Saphan 400 km

south of Bangkok

Upstream facility with the

deep sea port in Northeast

UK

Perfect strategic location

for steel business

Teesside 400 km north of

London

“Coastal Mill” #1

“Coastal Mill” #2

4

Capacity

3.6 mtpa(2)

100,000 dwt(1) x 2 14 mmts through-put

HotCoil CleanStrip®

4 mtpa(2) 1 mtpa(2)

CRC 1.2 mtpa(2)

EG 0.24 mtpa(2)

Domestic capacity

Share n/a n/a 55% 66% 43% 100%

1) dwt = Deadweight ton

2) mtpa = million tons per annum

3) SV Group includes Sahaviriya Group, Sahaviriya Inter Steel Holdings, and Viriyaprapaikit Family

100% 51% 3.7% 50.15%

Finished products

out-bound

Raw materials

in-bound

Integrate World Class Steel Businesses

Innovate Premium Value Products

Major shareholders

as of 14 May 2012 3)

Coated Steel Sheet

Cold Rolled Coil

Hot Rolled Coil

Deep-sea Port

Iron and Steel Making

99.99%

Engineering & Maintenance Service

Long-term

Strategies

ASEAN’s Largest Flat Steel Producer

35%

10%

10%

45% SV Group

Citibank Nominees

Six SIS

Others

5

SSI customers: Sectors & Applications

Hot Rolled Coil

P/O Coil

Finished Coils Sectors Applications

Commercial Grade

General Steel Pipes

General Steel Structure

General Steel Cut-to-Sheet

Unique-Grade

Steel Pipes

Steel Cut-to-Sheet

Floor Plate Steel

High-Grade

Re-rolling

Gas Cylinder & Pressure

Vessels

Automotive & Home and

Electrical Appliances Parts

Shipbuilding and High

Strength Structure

Atmospheric Resistant Steel

and Line Pipe

Machinery and Industrial Tools

6

Leading Market Position in ASEAN

3.5

4.0

1.2

Thailand

& Europe

1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8

Target Customers

(Geographically)

Thailand Thailand Indonesia Malaysia Philippine

Key Products

CRC

HRC – P/O

HRC – Gen Use

Slab

Capacity (mtpa)

CRC

HRC

Slab

Integration with UK operation provides SSI with a leading market position as an

integrated producer in ASEAN

Remark : CRC capacity relates to SSI’s 50:50 JV, Thai Cold Rolled Steel Sheet PCL

Source : Company websites and Annual reports

7

Core Strengths

Premium Value Products: Focus to innovate high value-adding products with

higher margin – account for 39% of total sales in year 2011

Integrated World Class Steel Business: Iron & Steel Making Business in North

East UK and HRC Business and downstream facilities in Thailand

Location Competitive Advantage: (facilities in Thailand and United Kingdom)

UK: Higher grade ore at lower price in Atlantic Basin, shorter deliver time and

freight cost saving, benefit from EUROPE debt situation from Pound Currency

depreciation and cheaper raw material procurement, lower overall cost.

Thailand: High growth in ASEAN market particularly for high-grade flat

products, lower labour & overhead cost, shorter distance & lead-time to

customers

Diversify risk strategy: SSI UK supplies slab internally (SSI) and externally, and

vice versa for SSI

Strong market position: The leading flat steel producer in ASEAN

Synergies: Multiple synergy opportunities identified

8

SSI UK

SSI TH

Source : Clarkson Research Services and The TEX Report

Location Advantage: Markets in feasible reach (Slabs)

Ternium-Imsa/Hylsa CSI

AK Steel

Oregon Steel (Evraz)

Duferco Farrell

Usiminas

CSN Volta Redonda

Jindal

LEGEND

Potential – new customer

Potential – prior customer

Dongkuk

Shang Hsing

Krakatau

GRP

GDS

Welspun

Maghreb Steel

MIR Steel

Spartan

Dansteel

Dillenger

Marcegaglia-Bremen

Duferco Belgium

Thyssen Duisburg

Ilva Taranto

Marcegaglia-Nogaro

Beltrame

Colak

Salzgitter

9

SSI UK

SSI TH

Source : Clarkson Research Services and The TEX Report

Location Advantage: Resources in feasible reach

Sweden

Canada

USA

Brazil

Ukraine Russia

South Africa

India

Australia Mozambique

LEGEND

Coking coal

Iron ore

10

3-Year Plan: Higher value-added products player

Most modern & largest stand-alone hot

strip mill in SEA

Market leader of high grade steel

sheets in SEA

Superior Competitive Position

(Technical & Product Leadership)

Establish in-house steel and product development to fit

SSI’s purposes

Ability to share technological know-how & leverage R&D

Gain access and ability to produce a number of new steel

grades with bespoke requirements

Technical & product leadership in the Thai & SEA markets +

23 New customer, New Grade, IVP Product

Moving Towards High

Value-added products High Grade Products,

22%

Unique Products,

15% General

Products, 63%

1st Half 2012

High Grade Products,

39%

Unique Products,

12%

General Products,

49%

3-Year Plan

40 New customer, New Grade, IVP Product

Strategically-located coastal mill

Second largest furnace in Europe with

cost efficiency and high volume

Capability to develop a wide range of

high grade semi-finished products

Integration to Become Regional Leader

37% >50%

11

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

Global Steel Outlook

12

World Steel Association (WSA)

o Apparent Steel Use will grow further by 3.6% to 1,422 MT in 2012,

following growth of 5.6% in 2011. In 2013, it is forecast that world steel

demand will grow further by 4.5% to around 1,486 MT.

Source : WSA press release , Oct, 2011

13

ASEAN: a major import region for steel products

Source : SEASI

(m tonnes)

2009 2010 2011E

Total Import

- Scrap N.A. N.A. 8.5

- Semi-finished Steel 9.6 9.6 8.1

- Section, bar & wire rods 4.7 5.9 6.8

- Hot-rolled sheets & strips 9.6 11.4 13.0

- Cold-rolled products 3.7 4.7 6.6

- Coated sheets & strips 3.0 4.8 4.8

Breakdown by country

- Thailand 8.9 12.0 12.2

- Vietnam 8.5 8.0 8.9

- Indonesia 5.5 7.3 8.0

- Malaysia 3.7 5.0 5.0

- Singapore 3.7 4.0 5.2

- Philippines 2.8 3.1 3.2

Price Movement: Ore, Coking Coal, and Slab

Slab price

Source: SBB

14

15

AEC & Impact on Thai Steel Industry

Automotive & Parts

Electrical & Electronics

Food Production Hub

(Packing)

Machinery and Metal

Working Production

Base

Manufacturing &

Assembly Hub

Electrical & Electronics

Thailand is center of ASEAN production

hub in electrical appliances

Food Production Hub

(Packing)

Thailand is center of world food

factory. Canned food output has been

grown up slightly. Mechanization of

agricultural process will increase more

output in canned food. Tourism Hub

Potential AEC-impacted sectors SSI targets high grade market, though impacted, growth is promising

Automotive & Parts

Thailand is center of ASEAN

production hub for automobiles.

Remark :* White goods include fan, rice cooker, refrigerator, air conditioner and compressor

Source : ISIT

0

10

20

30

40

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

White goods (Million Units)

CAGR 02-11

4.7%

0

200

400

600

800

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Canned Seafood (Unit : '000 tons)

Canned fruit (Unit : '000 tons)

CAGR 02-11

5.7%

0

500

1000

1500

2000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Passenger car ('000 units)

Commercial car ('000 units)CAGR 02-11

8.9%

0

10

20

30

40

50

60

2011E

Million tonnes Apparent Steel Consumption in ASEAN

Production Import Export Consumption

0

10

20

30

40

50

60

2011E

Million tonnes Apparent Steel Consumption in ASEAN

Production Import Export Consumption

16

Thailand flat steel demand: the biggest and most sophisticated in ASEAN

Application Midstream & Downstream Upstream (Iron & Steel Making)

Checkered

Source : WSA, ISIT, SEASI, Federation of Thai Industry

4.7 5.2 1.3

0.7

HRC P/O

Hot Rolling

2.7 2.2

4.9 MT

Cold Rolling

CRC

2.0 MT

Coating

Coated

3.0 MT

Local (MT)

Net Import (MT)

2011 Domestic

Demand

9.9 MT

Total Flat

Products

Slab

Thailand Flat Steel: largest and most sophisticated consumption in ASEAN, approximately 5.2 mtpa or 53% of total consumption served by import

0.7

2.3

MT

ASEAN’s industrialization and urbanization has driven and will drive consistent high growth.

LONG: CAGR 98-11

6.8%

FLAT: CAGR 98-11

9.2%

High growth, but served by import due to lack of raw material regionally

Apparent Steel Consumption High-grade Flat Steel Products Consumption

ASEAN steel demand is now 50 million ton per annum and is forecasted to constantly grow at 5.3%

47% 54%

53% 46%

1 2010

Long

Flat

90

80

70

60

50

40

30

20

10

CAGR 01-11

5.3%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20 17 2018 2019 2020

Forecast

CAGR 12-20

5.3%

17

Apparent HRC Supply (in ’000 tons)

Source: Iron and Steel Institution of Thailand for 2008-2011

* Year 2012 is forecasted upon actual data and SSI’s estimate

Q1/12 Q2/12 Q3/12*

Domestic Production 761 534 750

Import 879 917 808

Export 4 3 3

Total Supply 1,636 1,448 1,555

1,637

1,448

1,555

800

1,800

-

500

1,000

1,500

Q1/12 Q2/12 Q3/12

+7%

-12%

Apparent HRC supply in Q3/2012 will grow to approximately 1.55 MT or

+7% QoQ

Source: Iron and Steel Institution of Thailand for Q1-Q2/2012,

and SSI’s estimate for Q3/2012

Thailand HRC Outlook

4,986

4,389

5,848 5,837 6,273

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012*

Domestic Production

Import

Export

Total Supply

18

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

SSI UK PCI Project (Progress of work at 30 Jun 2012)

19

Project start : Apr 2012

Target completion : Q1/2013

Overall civil progress : 40%

Steel Structure : 0%

Mechanical Erection : 0%

Electrical Erection : 0%

Machine Installation : 0%

Commissioning : 0%

PCI Building

68%

Pipe Bridge

48%

Raw Coal Handling

8%

Electrical Building and

Compressor House

60%

Nitrogen Storage

Compound

41%

Stoves Waste Gas

33%

Pulverized Coal Injection Plant (PCI) Project

Turnkey Project Management and Investment Cost 57 MUSD

Actual Payment 20 MUSD (Committed 31 MUSD)

SSI#3 Magsenger3

88kt

SSI#2 Shi Dai 20

86kt

20

The Continuous Journey of SSI UK Slab Shipments

SSI#1 Blue Fin

48kt

SSI#4 Goya

59kt

SSI#5 Eastern Glamour

88kt

SSI#6 Britannia G

88kt

Turkey#1 Lucija

41kt

SSI#7 CMB Sakura

57kt SSI#8

60kt

Turkey#2 Genco

Success

40kt

Current status of SSI UK slab utilization

Actual Q2/2012 : Total 134,000 Tons

Since the first slab was produced by SSI UK on April 18, 2012, SSI had received two shipments of

slabs totaling 134,000 tons in Q2/2012 and expect to receive 378,000 tons in Q3/2012. Quantity categorized by each segment is shown as below.

Plan Q3/2012 : Total 378,000 Tons

Cut to sheet

83.58% (112,000 Tons)

Pipe

13.43% (18,000 Tons)

Checkered product

2.61% (3,500 Tons)

Re-rolling 0.37% (500 Tons)

Cut to sheet

79.37% (300,000 Tons)

Pipe

14.42% (54,500 Tons)

Checkered product

2.65% (10,000 Tons)

Re-rolling

2.65% (10,000 Tons)

Automotive

0.53% (2,000 Tons)

Gas cylinder 0.40% (1,500 Tons)

21

Note: Slab arrival basis/ HRC production plan

22

Introduction of SSI UK slabs to hi-end customers project

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

20122013

2014

0.08

0.47

0.97

0.44

0.29

Qty (Million Tons)

Other Slab

SSI-UK Slab

(Others 38%)

Purpose: To introduce SSI UK slabs to be used in hi-end customers such as re-rolling,

HA/EA and automotive customers. In addition, it is also aimed to use SSI-UK slab with these customers to replace current slab sources.

SSI aims to utilize SSI UK

Slab for 100% of Hi-Grade

segment in 2014

(SSI UK

100%)

(SSI UK

62%)

(SSI UK 16%)

(Others 84%)

0.52

0.76

0.97

2012 2013 2014

Trial period with customers

Target in Q3/2013

Target in Q1/2013

Target in Q4/2013

Re-roll Jun 12 HA/EA Q3/2012

Auto Q3/2012

23

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

Capital Increase & CD Buyback

24

Capital Increase & Allotment:

Current number of authorized = 27,708 m shares

Cancel 7,274 m shares authorized for the General Mandate (EGM 1/2555 on 8 June 12)

New share issued and allotment of 19,434 m shares as followings:

New total number of authorized shares = 39,868m shares

CD Buyback

Subject to: (1) 3/4 votes for approval at EGM, and (2) Independent Financial Advisor to provide opinion

report

Subscribers Offering Size Offering Price Max no. of shares (mm shares)

Remark

PP #1 Vanomet Equiv. $100m to 170m Baht 0.68 8,000 The remainder can be allotted to other

investors

RO Existing shareholders

Ratio of 10:1; Equiv. $39m Baht 0.68 1,834

PP#2 Other investors Equiv. approx $112m Baht 0.68 5,300 The remainder can be allotted to SVG

PP#3 SISH For CD Buyback and Sub-Loan Repayment

Baht 0.68 4,300

CD series Tenor Amount at

Issuance (mm units)

Amount

Outstanding (mm units)

Proposed Buyback Price

CD 1/2555 3 years 1,650 1,497 • At face value for general investors • 15% or more discount from face value for SISH

CD 2/2555 5 years 600 600 • 15% or more discount from face value

25

Comprehensive Financial Plan

Vanomet to provide to SSI UK

1) $100m in cash and 2) $70m trade credit

$125m slabs prepayment from

SSI will be converted in to equity

$33m Outstanding Sub-Loan

from SISH and accrued int. will be converted into equity

$80m - $100m equity from SSI

using PP+RO proceeds

SSI UK

Private Placement of new SSI

shares to Vanomet between $100m to $170m

SSI

Approx. $112m of new shares

to investors/partners

Approx. $39m of new shares to

shareholders at 10:1 right

offering Use as working capital for

business operation and the

repayment of debts

Approx. $92m of new shares to

SVG for CD Buyback and SISH

Sub-Loan repayment

$5 m CD Buyback from SISH and Vanomet

Now to October

Mid-November

Up to a total of $413 million capital increase

SSI Group: Comprehensive Financial Plan

Vanomet

Vanomet provides 170 MUSD

investment loan

− 100 MUSD in fresh fund

− 70 MUSD in credit line for

raw material purchase

SSI TH

SSI UK

Vanomet

Inject 133 – 203 MUSD as equity to SSI UK

− 100 – 170 MUSD to repay Vanomet’s

Investment Loan (same amount as

Vanomet’s subscription in SSI TH)

− 33 MUSD to repay SISH sub-loan + interest

125 MUSD to slab prepayment conversion

Up to 150 MUSD for working capital and

operating expense in SSI and SSI UK

Sponsor 1

100 – 170 MUSD

via PP

New

Investors

Up to 112

MUSD via RO

and PP

SSI UK

Lenders

SSI TH and Lenders have

signed MoU to terminate

standstill agreement and agree

key terms and conditions

SSI TH

SSI UK repay Vanomet in the same

amount of Vanomet’s subscription in

SSI TH

SSI TH buy-back

CD from CD holders

SSI UK repay for

sub-loan and

accrued int. to SISH

Step 1 Step 2

39 MUSD via RO

92 MUSD via PP

59 MUSD

33 MUSD

The plan will strengthen SSI’s capital structure and increase financial flexibility while enhancing market

position thru long-term partnership with Vanomet, a reputable international steel trading firm

Support from lenders

Vanomet’s Strategic Investment

26

SVG To support and participate in SSI TH’s

capital increase via RO

To allow for SSI TH to convert 125 MUSD

advance payment into equity at SSI UK

To agree to remove standstill agreement

To agree to rollover 100 MUSD bridge

facility to SSI UK

To increase capital for approx. 300 MUSD

to fill funding gap at SSI UK

To agree to convert its 125 MUSD

advance payment into equity at SSI UK

To provide 170 MUSD investment loan

which will be converted to SSI TH’s equity

within 1 year

Strengthen capital structure

Increase financial flexibility & liquidity

Enhance market position thru

partnership

Key Party Key Activity/Contribution

Key Improvement

Sponsor

W/C Lender

L/T Lender

SSI TH

Vanomet

27

Key Improvement from Comprehensive Financial Plan

Having new equity injected through RO & PP with funding from Vanomet & support from

existing lenders, SSI UK’s capital structure will be strengthened at D/E of ~1.2x

Debt: 821 MUSD

Equity: 269 MUSD

D/E ~3.1x

Debt: 790 MUSD

Equity: 644 MUSD1

Remark : 1) Assume equity raised through the offering of 250 MUSD being injected to

SSI UK and conversion of 125 MUSD slab prepayment

LT loan of 490 MUSD

ST loan of 100 MUSD

LT loan of 490 MUSD

ST loan of 100 MUSD

Working capital of 200 MUSD

Subordinated loan of 31 MUSD

Working capital of 200 MUSD

D/E ~1.2x

SSI TH’s slab advance payment of 125 MUSD

28

Jun 2012 Post-Capital Increase

SSI UK: Capital Structure Post Capital Increase

Debt: 1,708 MUSD

Equity: 545 MUSD

Jun 20121

Equity: 968 MUSD

Post-Capital Increase

Subordinated loan of 31 MUSD

IBD2 of 1,560 MUSD

Working capital of 50 MUSD

Convertible debenture (CD) of 67 MUSD

Debt: 1,560 MUSD

IBD of 1,560 MUSD

Remark : 1) FX (THB/USD) = 31.5

2) IBD = Interest Bearing Debt

Capital increase of 413 MUSD

Existing equity of 545 MUSD

Having new equity injected through RO & PP with funding from Vanomet & support from

existing lenders, SSI’s capital structure (consolidated) will be strengthened at D/E of ~1.6x

Gain from CD buyback of 10 MUSD

D/E ~3.1x D/E ~1.6x

29

SSI Group: Capital Structure Post Capital Increase

30

ShareholdersNo. of shares

(million shares)%

SVG* 6,545.87 35.70%

Vanomet 976.87 5.33%

Others 10,813.96 58.97%

Total 18,336.70 100.00%

Case 1: Assume SVG to subscribe entire RO portion

Case 2: Assume all shareholders fully subscribe RO according to their rights

Pre - Transaction Pro-forma Post – Transaction **

Note: * SVG = “Sahaviriya Group” consists of Sahaviriya Group Company Limited, Sahaviriya Inter Steel Holdings Company Limited, and

Viriyaprapaikit Family.

** The calculation are based on the following assumptions: (1) FX (THB/$) = 32.0

(2) Offering price = THB 0.68 per share

(3) All PP tranches are fully subscribed

35.70%

5.33%

58.97%

SVG Vanomet Others

30.45%

24.03%14.03%

31.49%

SVG Vanomet

New investors from PP Others

ShareholdersNo. of shares

(million shares)%

SVG* 11,500.46 30.45%

Vanomet 9,074.56 24.03%

New investors from PP 5,300.00 14.03%

Others 11,895.35 31.49%

Total 37,770.37 100.00%

ShareholdersNo. of shares

(million shares)%

SVG* 12,679.54 33.57%

Vanomet 8,976.87 23.77%

New investors from PP 5,300.00 14.03%

Others 10,813.96 28.63%

Total 37,770.37 100.00%

33.57%

23.77%14.03%

28.63%

SVG Vanomet New investors from PP Others

30.45%

24.03%14.03%

31.49%

SVG Vanomet

New investors from PP Others

Shareholding Structure

31

Agenda

Overview of SSI

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

32

SSI Group: Performance & Leverage Indicators

HRC EBITDA per Ton

ROE

Debt/EBITDA

7.0 x 4.7 x

14.0x

7.5x

200 2010 2011 1H 2011 1H 2012

8%

14%

-4%

200 2010 2011 1H 2011 1H 2012

Remark : 1) Consolidated basis, 2) Year End FX = THB 29.97:USD, 3) Year End FX

= THB 33.30:USD, 4) Year End FX = THB 31.83:USD, 5) 2011 EBITDA &

Net Profit include extra gain from business acquisition of

approximately 174 MUSD, 6) Quarter End FX = THB 30.43:USD, 7) Year

End FX = THB 30.99:USD

54 49

28 37

14

200 2010 2011 1H 2011 1H 2012

n.m.

Financial Highlights: 2009 – 2011 and 1H 2011-2012

UNIT 2009 2010 2011 1H 2011 1H 2012

Sale Volume MT 1.75 2.24 1.57 0.85 0.92

Sale & Services revenue1 MB 33,416 48,090 47,975 21,528 27,211

Revenue Growth % 20% 44% (0%) (16%) (YoY)

26% (YoY)

Average Selling Price /ton USD 551 663 769 746 743

HRC EBITDA per Ton USD 542 493 284,5 37 14

EBITDA1 MB 2,998 4,075 1,4055 5,603 (5,495)

Net Profit1 MB 1,273 2,446 (981)5 4,473 (7,863)

EPS1 Baht 0.10 0.19 (0.06)5 0.25 (0.43)

Debt/Equity1 time 1.2x 1.0x 1.8x 1.4x 3.1x

Debt/EBITDA1 time 7.0x 4.7x 14.0x 7.5x n.m.

ROE1 % 8% 14% (4%) n.m. n.m.

n.m. n.m.

33

HRC Shipment decreased to 423 k tons in Q2/12 from 497 k tons in Q1/12 and Slightly increase in slab inventory at

the end of Q2/12 due to slab orders from SSI UK

HRC Conversion Cost increased to USD 84/ton from USD 80/ton resulting from the reduced production volume

HRC Business Performance

0.52

0.33 0.41

0.30

0.50 0.42

0.54

0.28 0.37 0.38

0.50

0.37

340 337

224 202

278

230

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Shipment Production Volume Productivity (ton/hr)

73

99

90 85

80 84

68

91

78

85

72

84

1.71% 1.60% 1.58%

1.45% 1.56% 1.51%

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Real Normalized Yield Loss

32

53

40

61

54

47

48

72

47

68

48

51

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Slab turnover (excl. Intransit) HRC turnover

As of31 Mar

11

As of30 Jun

11

As of30 Sep

11

As of31 Dec

11

As of31 Mar

12

As of30 Jun

12

Slab Inventory 0.29 0.28 0.48 0.63 0.22 0.56

Slab Incoming 0.23 0.14 0.35 0.33 0.77 0.50

0.29 0.28

0.48

0.63

0.22

0.56

0.23 0.14

0.35 0.33

0.77

0.50

34

Premium Value Products accounted for 40% or 168 k tons in Q2/12

Premium Value Products accounted for 41% or 377k tons in H1/12, increasing 15% YoY

Innovated Value Products sold in Q2/12 = 57 k tons, declining from 81 k tons in Q1/12

Innovated Value Products sold in H1/12 =138 k tons, increasing from 89 k tons in H1/11 or

+55% YoY

HRC Business - Sales Ratio of Premium Value Products

58% 67%

59% 62% 58% 60% 61% 59%

12%

15%

16% 16% 15% 14% 13% 15%

18%

10% 11%

13% 11% 12% 15%

11%

5% 0% 3%

0% 7% 2%

3% 5%

7% 8% 10% 8% 10% 11% 7% 10%

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 . H1/11 H1/12

Innovated Value Product(High-Grade)

Innovated Value Product

High-Grade

Unique

Commercial

35

HRC Domestic Market Share

SSI’s Market share 27% in Q2/12 declining from 30% in Q1/12, while imports increase from

54% to 59%

* Recently identifiable from designated harmonized code for alloy steel (previously classified

as stainless steel)

0%

10%

20%

30%

40%

50%

60%

27%

14%

30%

16% 21%

15%

18%

Other (Alloy steel) *

SSI Local Suppliers Import

Carbon steels P&O

Carbon steels 21%

19%

19%

Q1/2012

Q2/2012

36

Note * HRC Rolling margin = metal spread

/ HRC selling price * 100

COST*

USD/ton 555-565

725-735

675-685

660-670

630-640

575-585

Note: * Import Cost of slab is based on CIF

HRC Selling Price (USD/Ton) and HRC Rolling Margin (%)

Slab Price (USD/Ton) and Volume of Slab Import (MT)

HRC Business Key Performance Snapshot

730-740 755-765 805-815 780-790 750-760 725-735

21%

14% 15% 17%

12%

16%

0%

5%

10%

15%

20%

25%

30%

0

500

1,000

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

0.43 0.37

0.30

0.66

0.34 0.35

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

HRC Business Performance

37

HRC EBITDA* (kUSD)

Negative HRC EBITDA 12.1 /ton in Q2/12, decreasing from USD 37.2 /ton in Q1/12 or -

132% QoQ due to new provisions set up for decline in value of inventories amounting

451 MB

Decrease in Q2/12 HRC EBITDA to negative 166 MB or -132% QoQ

H1/12 HRC EBITDA = USD 14.5 /ton declining from USD 37.2 /ton in H1/11

56.7

6.2

17.8 23.6

37.2

-12.1

37.2

14.5

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 H1/11 H1/12

HRC EBITDA* (USD/Ton)

29,666

2,059

7,361 7,164

18,481

-5,099

31,725

13,382

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 H1/11 H1/12

38

Slab production 477 k tons in Q2/2012

Slab sale 335 k tons in Q2/2012, exclusively sold within the Group of companies

Iron and Steel Making Business

Slab Production and Sale in Q2/2012

477

335

Prodcution Sale

Volume in Q2/2012 ('000 tons)

544 551

7

Average

RM Cost

Average

Selling Price

Slab Spread (USD/ton)

Production

39

Unit: MB 2012 2011 2012 2011

Q2 Q1 Q2 Jan-Jun Jan-Jun

Sale and Service Revenue 11,469 15,742 9,511 27,211 21,528

COGS (14,655) (17,312) (9,549) (31,976) (20,359)

SG&A (528) (600) (524) (1,128) (901)

Provision for loss under onerous

contracts (546) (5) 96 (551) -

Gain on business acquisition - - - - 5,271

EBITDA* (3,612) (1,879) (335) (5,491) 5,603

Interest Expenses (809) (684) (512) (1,493) (731)

Depreciation and Amortization (598) (286) (203) (884) (393)

Income Tax Expense (3) 8 (3) 5 (7)

Realized Gain (Loss) from FX (105) (249) (137) (354) (247)

Unrealized Gain (Loss) from FX 153 230 70 382 105

Net Profit (Loss) (5,022) (2,841) (1,053) (7,863) 4,473

EPS (Baht) (0.28) (0.16) (0.06) (0.43) 0.25

Consolidated P&L Snapshot

40

Note

• EBITDA = Net Profit + Tax Expense + Depreciation & Amortization + Interest Expenses

• Q1/11 EBITDA and net profit included gain from business acquisition

• Q3/11 EBITDA calculated from net profit included gain from business acquisition

Consolidated EBITDA & Net Profit (MB)

GROUP P&L

5,938

-354

3,170

-1,986 -1,879 -3,612

5,584

-5,491

5,525

-1,072 -2,965

-2,376 -2,841

-5,022

4,453

-7,863

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 H1/11 H1/12

EBITDA Net Profit

41

Consolidated Financial Position

Unit : MB 30 Jun 2012 31 Dec 2011 31 Dec 2010

Trade Receivables 4,665 5,240 2,962

Inventories 24,423 25,178 14,205

Plants, Properties and Equipments 53,383 50,149 20,293

Investments in Jointly-Controlled Entities 4,708 4,683 4,045

Other Assets 4,186 1,114 988

Total Assets 91,365 86,364 42,493

Short-term Debt and Current Portion of

Long-term Interest Bearing Debt 28,214 25,683 14,500

Trade Payables 14,479 10,685 3,157

Long-term Interest Bearing Debt 25,565 19,641 4,437

Other Liabilities 5,934 5,407 524

Total Liabilities 74,192 61,416 22,618

Equity Attributable to Equity Owners 16,319 24,096 19,093

Non-controlling Interests 854 852 842

Total Equity 17,173 27,204 19,875

Total Liabilities and Equity 91,365 86,364 42,493

42

Overview of SSI

Agenda

Industry Outlook

Recent Update and Ongoing Project

Capital Increase and Recapitalisation Plan

Q2/2012 Performance and Financial Results

Q & A

Appendix:

Background

Source: Company data

Vanomet Group Structure

Vanomet Holding AG

Vanomet AG Vanomet Finance AG Vanomet International AG Atlantic Steel AG Vanomet Asia AG

100% 100% 100% 100% 100%

Appendix: Factsheet on VANOMET Holding AG

43

VANOMET is a company registered under Swiss law, founded in 1991 by Ruedi Mathis,

a steel specialist with many years of experience in the industry

One of the world's largest independent steel trading companies with full range of

services tailored to specific clients’ needs including consulting, financing, marketing,

trust services, and logistics

Vanomet is a diversified international trading company with its head office in Zug,

Switzerland handling steel products and non-ferrous metals through a large network of

offices and agencies throughout the world.

SSI TH has been a strategic client with Mr. Mathis for more than 30 years

44

Unit : MB Q2/12 Q1/12 Q4/11

Sale Revenues 7,424 4,085 5,266

Cost of Good Sold (10,839) (6,106) (7,130)

Admin Expenses (327) (433) (212)

Provision for loss under onerous contracts (264) - (311)

Gain from Business Acquisition - - -

EBITDA (3,581) (2,486) (2,215)

Interest Expenses (358) (266) (261)

Bank Fees (5) (19) (11)

Gain (Loss) on FX (28) (143) 96

Gain (Loss) on Investment 13 16 (21)

Other Incomes - 8 -

Income Tax - 10 552

Net Profit (Loss) (4,384) (2,849) (2,031)

SSI UK Financial Results

Note: * Excluded gain from business acquisition

45

SSI UK Financial Results (Cont.)

Unit : MB 30 Jun 2012 31 Mar 2012 31 Dec 2011

Current Assets 12,837 8,918 8,553

Non-current Assets 34,636 32,480 31,218

Total Assets 47,473 41,398 39,771

Short-term Liabilities 10,530 7,789 7,565

Other current Liabilities 10,698 8,847 5,963

Total Current Liabilities 21,719 16,636 13,528

Long-term Loans 14,156 12,137 10,057

Total Liabilities 40,488 32,797 27,732

Share Capital 14,506 12,255 12,255

Retained Earning (7,882) (3,499) (650)

Total Equity 6,984 8,601 12,038

Total Liabilities & Equity 47,473 41,398 39,771